July 22, 2021
YOUR SOURCE FOR CAWG AND INDUSTRY NEWS. FOR CAWG MEMBERS ONLY.
NEWS ITEMS
New Report Shows Growing Adoption of Sustainable Practices by CA Vineyards, Wineries
The 2020 California Wine Community Sustainability Report from the California Sustainable Winegrowing Alliance (CSWA) shows broad participation in its educational and certification programs, and wide implementation of sustainable practices in vineyards and wineries throughout the state. The 57-page report highlights participation and certification data, program improvements and outreach. It also looks at water efficiency, energy efficiency, pest management, soil health, environmental and other sustainability practices.

CSWA was created in 2003 by CAWG and Wine Institute.
Quarantine to Keep Spotted Lanternfly Out of CA
A state exterior quarantine was declared by CDFA to prohibit the introduction of the spotted lanternfly (SLF) into the state. It prohibits the entry into California of SLF, its host plants, and various commodities and articles (including conveyances) originating from any area where an SLF infestation exists. This is one of many proactive steps CDFA is taking to protect the state from SLF. 
 
Government Relations Report
BROADBAND IN RURAL AREAS 
This week at a Tulare County elementary school, Gov. Newsom signed legislation making a much-needed $6 billion investment in broadband that includes the following: 
 
  • Providing $2 billion for ‘last-mile’ infrastructure lines that will connect consumers’ homes and businesses with local networks ($1 billion for rural communities + $1 billion for urban communities). 
  • Hiring a third party to build and maintain the ‘middle-mile network’ – high-capacity fiber lines that carry large amounts of data at higher speeds over longer distances between local networks. 
  • Investing $3.25 billion to target that middle mile and build the broadband lines. 
 
The lack of broadband in rural communities is a serious ongoing problem that has been debated as a priority issue in Sacramento for several years. This legislation represents the most significant and measurable effort in actually tackling that problem. It is not clear how many rural California farms will receive broadband through this investment, but this is a step in the right direction.   
 
Senate President pro Tempore Toni Atkins (D-San Diego), Assembly Speaker Anthony Rendon (D-Lakewood) and Newsom said in a joint statement, “This broadband package is historic. It transcends politics, and it will be a legacy project that will benefit generations of rural and urban residents alike.”
 
WHO’S ON THE RECALL BALLOT?
The most notable thing about the candidates running to replace Gov. Newsom – should he be recalled – is that none of them are really all that notable. The top candidates are Republicans Caitlyn Jenner, insurance executive John Cox, former Congressman Doug Ose, former San Diego mayor Kevin Faulconer, Board of Equalization member Ted Gaines, Assemblymember Kevin Kiley and conservative talk show host Larry Elder (added to the ballot yesterday).  
  
This is very different from the 2003 recall when megastar Arnold Schwarzenegger unseated Gov. Gray Davis. No candidate in the 2021 recall enjoys such high statewide name recognition.  
  
To help voters form an opinion of people they know nothing about, unknown candidates rely on political party affiliation and ballot designation, which they provide in their official filing documents. This year, there are 24 Republicans, 10 with no party preference, nine Democrats, two Green Party candidates and one Libertarian. Below are a few of the most popular themes used in this year’s ballot designations: 
  • Business (12) 
  • Entertainment (5) 
  • Teacher (5) 
  • Parent (4) 
  • Farmer (4) 
  • Retired (4) 
  • Elected official (3) 
  • Law enforcement (3) 

Some candidates also try to get their political leanings across by using interesting email addresses. For example, candidate Dennis Richter filed with no party preference, but has “socialistworkers2021” in his email address.  
  
The election is on Sept. 14 and ballots will begin arriving in mailboxes on Aug. 16. It’s going to be an interesting few weeks as we learn more about these candidates. 

—Michael Miiller / michael@cawg.org / (916) 204-0485
Proposals Due Aug. 8 for Specialty Crop Block Grants
CDFA is accepting proposals for the 2021 Specialty Crop Block Grant Program (SCBGP) under H.R. 133 Stimulus Funding. In addition to the regular SCBGP funding, Congress is awarding one-time SCBGP funding due to the COVID-19 impacts on food and agriculture. According to CDFA, up to $10 million will be awarded to projects, with grants ranging from $250,000 to $1 million. The deadline to submit proposals is Aug. 8.
 
 
WEBINAR
July 29 / 1:30-3:30 p.m. >REGISTER
CA Wine Sales, US Wine Exports
CA WINE SALES: $40B IN 2020
California wineries experienced an increase in sales by volume in 2020, with 240.3 million cases shipped within  the United States, up 1% from 2019, totaling an estimated retail value of $40 billion. California wine sales to all markets, including the U.S. and export markets, were 279.2 million cases in 2020, up 2% by volume from 2019, according to wine industry expert Jon Moramarco of bw166 and Gomberg, Fredrikson & Associates.


U.S. WINE EXPORTS: $1.29B IN 2020
U.S. wine exports, more than 95% from California, reached $1.29 billion in winery revenues and 377 million liters (41.9 million cases) in 2020, according to Wine Institute. The top export markets for California wines in 2020 were: Canada, $424 million; United Kingdom, $236 million; the European Union’s 27-member countries, $191 million; Japan, $80 million; Hong Kong, $64 million; South Korea, $50 million; China, $21 million; Mexico, $17 million; Norway, $15 million; Switzerland, $14 million; and Singapore, $13 million. 
 
Senate Hearing: Immigrant Farmworkers are Essential to Feeding America
The Senate Judiciary Committee on July 21 held a hearing on the Farm Workforce Modernization Act, which passed the House of Representatives in March. USDA Secretary Tom Vilsack was among the speakers. California Sen. Dianne Feinstein also gave remarks in support of the bill.
 
New Grape Variety
The TTB recently granted administrative approval for the use of the grape variety lomanto as a type designation on American wine labels. Wine bottlers can use this name, as well as other names granted administrative approval, to label wines pending TTB’s next rulemaking. 
Michael Flores New CDFA Deputy Secretary
Michael Flores was sworn in this week as CDFA deputy secretary. Flores has been a political consultant since 2019. During his career, he worked for Gray Davis when Davis was governor and lieutenant governor, and he served as California Fish and Game Commission president and commissioner from 2000-2007.
Providing the very best California crop insurance services.
WILDFIRE
View Video: Smoke Issues and Grape Contracts Webinar
This July 16 webinar discussed the findings of A Legal Analysis: 2020 Winegrape Rejections (prepared by Downey Brands LLP).
 
 
>ARTICLE: Grape contracts, wildfire and smoke exposure (Wine Business, July 19)

>ARTICLE: CA wine grower report alleges 2020 ‘predatory conduct’ in smoke rejections. Winery attorneys say there’s more to the story (North Bay Business Journal, July 19)

Allied Grape Growers
View Video: Vintner Insurance Webinar
Insurance Commissioner Ricardo Lara on July 21 hosted the Virtual Roundtable Discussion for California’s Vintners, in partnership with CAWG and other wine industry groups. The commissioner’s office encourages you to share the webinar video with colleagues. If you have any questions, experts at the California Department of Insurance (CDI) can help you review and navigate any type of insurance policy you may have – contact by phone 800-927-4357 or via the chat feature on its website.
 


CDI Notice: Mandatory Moratorium on Non-Renewals After Recent Wildfires

CDI sent a notice this week reminding residential property insurers they are prohibited from non-renewing or cancelling policies of residential property insurance for residential properties in zip codes within or adjacent to a fire perimeter for one year following a governor’s declaration of a state of emergency.
View Video: Harvest 2021 Employee Health & Safety Webinar
This July 9 webinar focused on COVID-19 ETS, wildfire smoke worker safety standards, heat illness prevention standards, nighttime ag work standards.
 
Office Hours with Dave and Anita: Harvest Readiness in Times of Wildfire
WHEN: July 27 / 2-3 p.m. PT 
ABOUT: Dr. Anita Oberholster will conduct the presentation, then answer questions. 

Articles and Resources
With over 30 harvests, the G3 Ag Team has deep experience in winegrape hauling. Our operational expertise and agile planning combine to provide responsive service for wineries and grape growers large and small. Click on image or here to view video.
DROUGHT
Dam
In his July 21 Sacramento Bee editorial, Sen. Jim Nielsen (R-Red Bluff) stated the Newsom administration's failure to invest in water storage is “leaving California ill-prepared for drought conditions and jeopardizing its environmental and fiscal health.” 
 
In response to the drought, Gov. Newsom issued an executive order earlier this month, urging Californians to reduce water use by 15%. Several other actions have already been taken by the Newsom administration and additional measures may come soon.   
 
Senior officials from state and federal agencies are now warning of potential drought response actions that could occur in the next few weeks. At a meeting of the State Water Resources Control Board this week, the following information was reported by the board, the California Department of Water Resources and Bureau of Reclamation: 
  • Lake Mendocino will likely dip below its threshold by Aug. 1. This could trigger curtailments. 
  • Emergency regulations for Bay-Delta curtailments and other drought-related conservation measures could come soon. The regulations may serve as a statewide template. 
  • All post-1914 right holders could be impacted. 
  • Some pre-1914 right holders, as far back as 1880, may also be impacted. 
  • Additional notices of water unavailability may also come very soon. 
 
This inevitable situation was foreseen by the voters in 2014 when they approved Proposition 1, a $7.1 billion water bond. That bond included funding for increased surface storage. The Sacramento Bee recently reported on the frustrating delays in building new storage, including the Sites Reservoir, which is still in the pre-construction phase.

—Michael Miiller / michael@cawg.org / (916) 204-0485
Photo: DWR
Drought and Reservoir Conditions
As of July 20, 55 of 58 counties are experiencing extreme or exceptional drought conditions.
CAWG NEWS
CAWG Annual Meeting Postponed
Our annual meeting, originally scheduled for July 21, has been postponed to immediately precede the Nov. 11 board of directors meeting, which will take place in Santa Barbara County. Details will be provided in the months ahead. 
CAWG Awards of Excellence
Please take the time to nominate candidates you believe have made an impact on the winegrape industry. Nominations due Sept. 10.
ARTICLES
CALENDAR
AUGUST

2 / West Coast Smoke Exposure Task Force: Crop Insurance Webinar — register

SEPTEMBER

10 / Nominations due for CAWG Grower & Leader of the Year — details