Laws Continued from Page 1
non-renewed have sought coverage under the California FAIR Plan, the state’s insurer of last resort. However, FAIR Plan policies are intended only as a temporary option. The policies are expensive and do not pro- vide comprehensive coverage. To help policyholders leave the FAIR Plan, the program has a clearinghouse where insurance companies can browse policies and make coverage offers. Currently, the clearinghouse lists only residential policies, not commercial ones, preventing farmers from bringing all their properties back under the same, compet- itive insurance policy. Under SB 505, commercial policies will be added to the FAIR Plan clearinghouse. Last year, after several major insurance companies stopped or limited their writing of new policies in California due to wild- fire risk, state Insurance Commissioner Ricardo Lara announced California will loosen some regulations in exchange for a commitment from insurance companies to provide coverage to property owners in fire-prone areas. The insurance commissioner estimat- ed it would take at least a year to reform the state’s regulatory requirements. “This isn’t going to happen overnight,” Reardon said, adding that the state government has “made a commitment that the (insurance) companies will be back.” Several regulations from the California Air Resources Board will impact truck-
ing operations this year. The mandates are part of a broader effort announced by Gov. Gavin Newsom in 2020 to reduce vehicle emissions. The Advanced Clean Fleets regulation was adopted last year. The landmark rule will phase out most diesel trucks in California over the next two decades, be- ginning this year. It also applies to tractors that weigh more than 8,500 pounds. All companies with 50 or more vehicles or at least $50 million in annual revenues and to all federal agencies, such as the U.S. Postal Service, are subject to the rule. Agricultural and trucking industry groups raised concerns that the rule could have unintended consequences if the elec- trical grid, vehicle technology or charging infrastructure for zero-emission vehicles are not in place before companies are forced to transition. “We are extremely concerned that the proposed ACF rule will be unworkable in the real world and could result in com- promising the delivery of essential goods and services to Californians,” a coalition of commercial, transportation and ag- ricultural organizations, including the California Farm Bureau, wrote in a letter to the air resources board. For now, business owners can contin- ue to operate their diesel trucks, but the rule requires that fleets start phasing in zero-emission vehicles this year either by replacing any decommissioned trucks
with electric vehicles or by converting at least 10% of their fleet to zero-emission vehicles by 2025. “There is a big infrastructure problem,” said Katie Little, senior policy advocate for the California Farm Bureau. “There isn’t even enough charging capacity in urban areas let alone rural areas.” Little added that shipping delays caused by insufficient infrastructure could be di- sastrous due to the nature of agricultural freight. “We can’t have tomatoes, milk or livestock sitting in the sun,” she said. “Our goods are perishable.” The rule includes exemptions for infra- structure and supply delays, but the bur- den is on the business owner to apply for a waiver. Another new rule from the air resources board, called Clean Truck Check, is aimed at ensuring heavy-duty vehicles are prop- erly maintained and not producing more emissions than they should. This rule went into effect Oct. 1. It requires vehicle own- ers to enter their vehicles in a Clean Truck Check database and pay an annual fee of $30 per vehicle. As of Jan. 1, all trucks in California must have proof of compliance with the rule to continue operating. Beginning in July, the rule will require vehicle owners to conduct emissions testing, similar to a smog test, every two years. Agricultural vehicles must get tested every year. See LAWS, Page 16
Angeles, and sponsored by the California Farm Bureau. It was spearheaded by San Diego County farmer Al Stehly after he encountered a burdensome regulatory process when trying to get certified to use drones to apply pesticides on his vineyards. Farmers worldwide have used drones to improve worker safety, lower costs, con- serve water and increase crop yields. “The technology allows you to use (ap- plications) in areas where you previous- ly couldn’t because it’s so targeted,” said Christopher Reardon, government affairs director for the California Farm Bureau. “This bill is a very good thing.” Farmers will likely see changes to prop- erty insurance options this year, though not immediately. Another bill sponsored by the Farm Bureau, Senate Bill 505, will take effect “on or after” July 1. The bill, authored by state Sen. Susan Rubio, D-Baldwin Park, was created to improve commercial property insurance options for people who have lost coverage due to wildfire risk. In recent years, cancellations of insur- ance policies in fire-prone areas have dealt a blow to farm businesses. Without insur- ance, farmers and ranchers may not be el- igible for the loans they need to purchase the properties, structures or equipment they need to run their business. Many farmers whose policies were
January 3, 2024 Ag Alert 15
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