The Barbed Wire - January 10, 2020

RCRC’s Annual Installation of Officers and Rural Leadership Awards Reception

The RCRC Annual Installation of Officers and Rural Leadership Awards Reception will be held Wednesday, January 15, 2020 at 5:00 p.m. at the Hyatt Regency in Sacramento.  Full details and registration can be accessed here.

RCRC Takes Action in Multiple Regulatory Proceedings at California Public Utilities Commission

RCRC kicked off the New Year by engaging in multiple regulatory activities currently taking place at the California Public Utilities Commission (CPUC).  This week, RCRC took the opportunity to make formal comments in the CPUC’s Wildfire Mitigations Plan (WMP) Proceeding, De-Energization (or PSPS) Proceeding, and the Self-Generation Incentive Program (SGIP) Proceeding.  

On Monday, RCRC filed comments on the long-awaited evaluative materials for WMPs for the upcoming 2020 WMPs.  The CPUC is beginning the transition from an annual WMP process to a new process per the direction of Assembly Bill 1054 (Holden, 2019), which creates a new Wildfire Safety Division at the CPUC and requires utilities to have three-year WMPs in place.  

That same day, RCRC also submitted comments on the recently-granted motion that utility PSPS after action reports be included in the Proceeding’s record.  These utility-written reports are lackluster at best and require more insight and scrutiny by the CPUC and public in the future.  

Finally, RCRC made a motion for party status in the SGIP Proceeding on December 30, 2019 and filed timely comments on January 3^rd for the Proposed Decision coming up for a vote at the CPUC Hearing on Thursday, February 6, 2020.  RCRC supports the Proposed Decision to expand funding for resiliency projects in RCRC member counties with medical needs, as well as critical infrastructure.

Rural Broadband Update

On Wednesday, lawmakers in the House of Representatives overwhelmingly approved a variety of measures that would require the Trump Administration to firm up a strategy on rolling out and securing 5G wireless networks, and ensuring that the U.S. plays a role in setting their international standards.  The package of legislation comes as the U.S. works to win the "race to 5G," which will enable a generation of Internet-connected devices and offer mobile data speeds up to 100 times what is currently possible.  

The pieces of legislation voted on include: The Secure 5G and Beyond Act (H.R. 2881); Promoting United States Wireless Leadership Act (H.R. 4500); the Promoting United States International Leadership in 5G Act (H.R. 3763); and H. Res. 575, which supports the Prague 5G proposals.  While the Congress’ recent action is laudable, RCRC remains concerned that these efforts to promote 5G may not be workable in many rural areas of California.  As such, RCRC continues to advocate to federal policy makers that deployment of broadband is the most appropriate telecommunications upgrade that should be made for rural areas of the state and country.

Insurance Pilot Program for Hemp Growers

Late last year, U.S. Department of Agriculture’s Risk Management Agency (RMA) announced a new crop insurance option for hemp growers available in select counties across 21 states, including California.  The pilot program will be available for hemp grown for fiber, grain or CBD oil for the 2020 crop year.  

To be eligible for the pilot program, a hemp producer most comply with applicable state, federal and tribal regulations, have at least one year of experience growing the crop and have a contract for sale of the insured hemp.

U.S.-Mexico-Canada Agreement Update

On Tuesday, the Senate Finance Committee voted 25-3 to send to the full chamber a bill implementing the U.S.-Mexico-Canada Agreement (USMCA).  Senator Chuck Grassley (R-Iowa) recently stated his desire to get the agreement to a full vote in the next several days, before Speaker Nancy Pelosi (D-San Francisco) sends the articles of impeachment to the Senate, which could delay a USMCA vote for weeks.  

Senator Grassley stated, “The minute those articles come over, that takes precedence under the rules and under the Constitution.”  Senate Majority Leader Mitch McConnell (R-Kentucky) had said last month that the Senate would not take up the USMCA until after an impeachment vote, but that was before the Speaker announced she was withholding the articles. 

SALT Deduction Cap

On December 19^th, the House of Representatives passed legislation to eliminate the $10,000 limit on deductions for State and Local Taxes (SALT) for 2020 and 2021, double the deduction to $20,000 for couples for 2019, and pay for the changes by permanently restoring the top marginal tax rate for individuals to 39.6 percent.  

House Democrats only narrowly approved the bill, which passed by a vote of 218-206.  House Republicans submitted an amendment to maintain the SALT cap on deductions for taxpayers earning more than $100 million per year, and direct the saved money to a $500 tax break for teachers and first responders.  House Democrats overwhelmingly agreed to the amendment and incorporated it into the legislation, despite opposition from liberal lawmakers in the Congressional Progressive Caucus.  Representative Mike Thompson (D-Napa) said the motion was accepted “in the spirit of the holiday season.”

Despite passage in the House, Senate Republicans have signaled they will not bring the bill to a vote in the Senate, and the White House has also expressed opposition.  As such, the passage in the House was largely viewed as a messaging victory for Democrats, many of whom were elected last year in wealthy, suburban areas where the SALT cap had raised some voters’ taxes.

Surface Transportation

Peter DeFazio (D-Oregon), Chairman of the House Committee on Transportation and Infrastructure, recently reported to POLITICO that his surface transportation bill will not be drafted this month.  

He had previously indicated that the bill would be forthcoming in the “beginning of the year,” but responded to questions about an update to its timing by stating “This is like the beginning of the beginning of the year.  We're talking about the middle of the beginning of the year… that’s earlier than June but later than January."  He added that he hopes to "release more specifics in the not-too-distant future."

Appropriations Update

A White House official recently reported that President Trump hopes to send his fiscal 2021 budget request to Congress on February 10^th.  

This is the first time the Trump Administration will be able to publish its annual tax and spending blueprint for the coming year with certainty of spending levels already established for the current fiscal year.

Bill of the Week: Assembly Bill 315 (Garcia) – Municipal Lobbying Associations

RCRC officially opposed Assembly Bill 315 by Assembly Member Cristina Garcia (D-Bell Gardens).  If passed, AB 315 would place burdensome restrictions and reporting requirements on municipal advocacy organizations such as RCRC.  

Specifically, AB 315 would:

• Prohibit municipal advocacy organizations from spending moneys for any purpose other than to present information regarding legislation;
• Require municipal advocacy organizations to publicly disclose any expenditures of the moneys; and,
• Restrict municipal advocacy organizations from incurring any travel-related expenses other than an annual conference or other events.

Many municipal advocacy organizations rely on membership dues to fund advocacy programs as well as a number of non-advocacy efforts (i.e. educational activities, charitable promotions, etc.).  RCRC and a large number of AB 315 opponents believe the bill would limit advocacy organizations the ability to conduct outreach, seek feedback on policies and procedures, coordinate efforts between counties, recognize innovative county service models, and mobilize support and resources in the wake of natural disasters, among many other services. 

Late on Thursday, Assembly Member Garcia withdrew AB 315 from being heard next week in the Assembly Local Government Committee.  As such, the bill fails to advance.  However, she has proclaimed that she will put forth a new bill in March to address the auditing of municipal advocacy organizations.

AB 315 letters can be accessed here, here, and here.  For more information, Paul A. Smith, RCRC Governmental Affairs Vice President, can be reached at (916) 447-4806 or psmith@rcrcnet.org.

BULLETIN BOARD

Announcements regarding hearings, grants, and public comment notices of importance to California's rural counties.

Western Interstate Region Conference Coming to California

Join RCRC, Mariposa County, and the California State Association of Counties (CSAC) for the 2020 National Association of Counties’ (NACo) Western Interstate Region (WIR) Conference at Tenaya Lodge at Yosemite!  Mariposa County Supervisor Kevin Cann serves as WIR President, and is looking forward to hosting his colleagues from the 15 western states in Mariposa County.

Click here for sponsorship opportunities

Click here to register

California Association for Local Economic Development Rural Exchange

The Rural Economic Development Exchange will be held in Sacramento on Tuesday, January 21, 2020 at the Hyatt Regency in Sacramento.

Click here

USDA Rural Development Hosts ReConnect Technical Assistance Workshop in Seattle

This regional two-day workshop will be held in Seattle, Washington, and will allow applicants to gain a stronger understanding of the application process and program requirements.  It will provide stakeholders with information about the Funding Opportunity Announcement (FOA) released in December 2019, as well as specific details regarding the Engineering, Financial, Environmental, and Program Management requirements.  There are not currently any scheduled workshops for California.

Click here