CLFP’s Larrea Speaks at CCOA Annual Meeting

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CLFP Government Affairs Director John Larrea was part of an energy panel on June 29 at the California Creamery Operators Association’s (CCOA) 116th Annual Meeting. Held in Lake Tahoe, Nev., the annual meeting spanned two days and examined a variety of business and energy issues affecting dairies and dairy operations, as well as food processors in general.

Larrea shared the Energy Issues and Outlook Panel with Rich Wilson, a project manager with WZI Inc., an environmental and consulting engineering company. Wilson gave an overview of AB32/Cap-and-Trade issues in conjunction with the Triennial Compliance Obligation year. The Energy Panel was moderated by Roger Isom, president and CEO of the Western Agricultural Processors Association.

Larrea’s presentation focused on energy pricing forecasts for California’s industrial users and the impact of the state’s environmental goals on energy prices and availability. Based upon how successful the state Legislature is in setting additional environmental goals, such as contained in Senate Bill 350 (de Leon), electric rates are forecast to increase anywhere between 26% to 42% by 2020. CCOA members were apprised of the more than 60 energy and emissions mandates currently on the books in California and how these energy mandates, among other factors, are contributing to energy rates that are 50% (trending to 80%) higher than rates in surrounding states.   

CCOA members expressed an interest in solar energy technology policy, the California Renewable Portfolio Standard and programs surrounding the development and deployment of biogas digesters. Additionally, Larrea addressed California’s Air Resources Board (ARB) efforts to develop guidelines for the distribution of an expected $2.2 billion in estimated auctions funds from the Cap-and-Trade regulation.

Meeting attendees also inquired about the status of the food processing leakage study ordered by ARB in 2011. Larrea informed the group that the study was complete, but that the agency wouldn’t release the study results until early 2016. The food processing study will determine which sectors within the food processing industry may be designated as a high leakage risk. Larrea urged CCOA to support CLFP and other industry representative’s ongoing efforts seeking a high leakage risk designation for all facilities with emissions below 25,000 MMTCO2e annually.

by CLFP Government Affairs Director John Larrea



 

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