June 24, 2015
Moderator: Hello everybody. And thank you for joining us for this call. The topic today is going to be support - new support that is for producers that have been affected by drought in California. And we have on the line from California, Agriculture Secretary Tom Vilsack, Interior Deputy Secretary Michael Connor as well as California's Secretary for Natural Resources John Laird.
We're going to hear from all 3 of them. Reporters, after they have spoken, if you'd like to ask a question, please let us know by pressing star 1 on your touchtone pad. And we begin with Secretary Vilsack. Hello.
Tom Vilsack: Hello, (Susan). Thanks very much. And thanks very much for everyone who's on the phone. Appreciate the opportunity to speak to you today from California. And certainly appreciate Deputy Secretary Connor and Secretary Laird for taking time from their busy schedules to be part of this conversation and call.
It certainly reflects the close partnership we have with the Department of Interior and the State of California as we try to deal with the consequences of a 4-year long drought. We're announcing today a $150 million commitment by the United States Department of agriculture to provide assistance and help in drought stricken California. $130 million of this commitment will be focused in our Resilient Lands and Waters partnership program, looking at the Sierra and Cascade headwaters and connecting a landscape scale effort of work that will be done through the Forest Service and through NRCS.
The Forest Service will be dedicating $54 million a year for 2 years. NRCS will be dedicating $11 million per year for 2 years for a total of $130 million. This resource will be used in a coordinated, cooperative fashion, and will be leveraging additional commitments and resources from our partners in the state to improve and restore streambeds and channels, to restore meadows, to invest in more fuel reduction and thinning in our nation's forest and the National Forests that are in this areas, expanding habitat opportunities.
All of which is designed to assist and make commitments on drought assistance more efficient, more effective than the individual actions that we've been doing in the past. This is a coordinated partnership effort which we think will result in better water conservation and preservation. It will also do a better job of protecting the quality of water for 25 million California residents who are impacted by this landscape.
We're excited about this opportunity to work collaboratively with our partners at the state and federal agencies, sister agencies as we try to get through a very tough, tough stretch. We also recognize that in addition to more coordinated landscape scale effort by both our NRCS and Forest Service, that we also have to provide additional assistance to ranchers in particular, who have been struggling with making sure that they have adequate resources to store water that is available to them to do a better job of more efficient well development and prude pipelines.
All of which designed to make it a little bit easier for them to get through this tough spot. $13.7 million of the $150 million is going to be allocated for this purpose and will be administered through NRCS. A final $6 million of our commitment is through rural development and will be funneled through our Emergency Community Water Assistance Grant program.
And this is a program designed to help communities deal with the consequences of drought. It may be a community providing more assistance for individual homeowners working off of wells. But this resource will, I think, come in handy for communities across the state that are - have been impacted negatively by the drought situation.
This effort by USDA continues a several year commitment that we've made with disaster assistance, with additional ECWAG money for conservation efforts with Emergency Watershed Protection resources, the climate hubs, expanded research efforts and our work with individual producers to improve irrigation systems.
All of it designed to better utilize scarce sources. We can't do this alone. We know that we have to work collaboratively with our partners in the Federal government.
Certainly, we have no better partner than the folks at the Department of Interior. And we also know that we have to work with the state officials and with individual producers. And I think we have good close collaboration between sister agencies and the state. So I'd like to turn it over now to Deputy Secretary Connor who is very familiar with the California situation having spent a good deal of his life out there. He knows this about as well as anybody.
And after Deputy Secretary speaks, Secretary Laird will be given the opportunity to say a few words. And then we'll take questions.
Michael Connor: Thank you very much, Secretary Vilsack. And thank you and I appreciate your leadership in the - yet again the announcement today of additional resources that the Department of Agriculture is providing to assist in our overall landscape level restoration efforts as well as drought relief efforts. To say the least, the Department of Interior is absolutely proud to be a partner in the California Headwaters Resilient Land and Waters partnership that we're announcing today.
As Secretary Vilsack noted, in our efforts to deal with the immense set of challenges that exist as result of the drought and of course they relate to an increase risk of fire as well as the water supply issues at hand, it's important that we take actions at all levels. And that includes throughout the landscape as a whole. And that includes headwaters of our watersheds all the way down to the Bay Delta
So this - California Headwaters partnership encompasses the major watersheds of Central California, Sacramento Rivers, San Joaquin, Larry Buena Vista Lake. Watersheds, these are incredibly important and stressed resources. And this overall effort will address a lot of goals at the Department of Interior has but also our partners at USDA and the State of California have.
Through these efforts, we're going to unify a number of collaborative initiatives at the local levels. And a lot of good actions that are being undertaken by a number of groups. And we're going to engage in actions that prioritize. Restoration efforts that we have highlight particular conservation needs restoration needs. And overall, build resilience to the impacts of climate change.
And in doing so, we'll reduce wildfires risks, long term restore forest, improve water quality and quantity, a long term benefit under the drought and continue to protect important wildlife habitat. So this is a win/win situation from all perspectives I think. I was out in California last week meeting with the number of water user groups.
I was impressed with even the midst of the very tough waterslide season. People were looking at new institutional arrangements to share water, to share resources and try and get through this year. And no better partner we have than the state of California. And I think that overall, initiative will help us align our efforts with Governor Brown and his team's efforts in California.
And with that, I will turn it over to Secretary Laird from California.
John Laird: Thank you very much. And I appreciate being on the call. I appreciate this announcement. And Secretary Vilsack and Deputy Secretary Connor are de facto citizens of California given the amount of time and effort that they have put into our special needs here. As this call goes on, I happen to be in the Sierra. And we're at zero percent of our snowpack normal right now.
And so what we have down is two years ago, we issued a California Water Action Plan which laid out what we needed to do in California to get to sustainability over the next few years. That was basis of the $7.5 billion water bond. That bond includes money for watersheds in the Sierra and for the restoration that goes with it.
Additionally, the Sierra Nevada Conservancy and the Forest Service entered into an agreement to give the Sierra Nevada Watershed improvement program. And this really is what the previous two gentlemen were talking about. About an effort to reduce the risk of large damaging fires and restore forest and watershed help in the Sierra.
And it's a formal partnership that we are engaged in. And additionally, in California we have a cap and trade program. And we are taking cap and trade money and putting it into restoration both of watersheds in the Sierra and to forest help in the way that is completely consistent with this. We have a forest climate action team.
We will be doing a forest carbon plan next year. And the great thing about this announcement today is this matches every effort that California is doing. I mean some cases we have a formal partnership that exists already, and others, it adds almost directly to what we are doing in one of these initiatives. And so, it's not just the amount of money that's announced today.
It has an exponential impact by just reaching much further in these things and making the money stretch because both of us are in it together. And then lastly, I just want to thank both Department of Agriculture and the Department of Interior for the drought assistance both with this money, on this call and in general.
We are just facing an unprecedented time, the four driest years that we have had in sequence in California history that taxes our agricultural industry as well as the individual citizens. And I think stepping up with the drought assistance today is just the kind of support that is very helpful. It's targeted to people that have their backs against the wall and really need it right now.
So we're very grateful for it. So we really pleased for this announcement. This has been a great partnership. And with that, I turn it back over the moderator as we move to questions.
Moderator: Gentlemen, thank you. Reporters, once again if you'd like to ask a question, please let us know by pressing star 1. Secretary Vilsack and Secretary Laird, I'd like to pose this question to the two of you because you guys have actually been on the front line. You've talked to producers that have been impacted by this continued four year drought.
Give me your perception overall. And what is really hurting them? And what is it that they really need?
Tom Vilsack: (Susan), I'm going to let Secretary Laird take a first shot of that. But I would be remiss if I didn't point out that Deputy Secretary Connor is also been visiting producers. So he may have some input as well. And then I'll add my comments.
John Laird: Yes. I think that the question was what are - what do people really need? And that just goes on a number of different levels. They need assistance in alternate water sources if there's assistance in drilling wells. They need assistance in the fact that we have 17,000 farm workers and farm employees that have been laid off to date.
And there's a whole range of assistance that needs to be done there. And there is assistance in a number of different programs, whether it soils and other things that in the stressful situation that we have right now, certain things can really help people. And so, it is in all those categories that it really makes a difference.
Tom Vilsack: Mike Connor, if you have - if you want to add something to that, feel free.
Michael Connor: I would just quickly add and thank you very much, Secretary Vilsack. I agree with Secretary Laird. There are a lot of needs from assistance with labor as well as I think certainty or as much as we can get. Even with the diminished state of water supply, I think producers need some level of help in our real time operations to make as many adjustments as we can to provide as much certainty with respect to water supply so that they can plant throughout the rest of the year.
And then they continue to need our assistance in making strategic investments so that they cannot just get through this year with the operational adjustments, but to try and improve the situation so that they can get by with less water and try and maintain a certain level of production to improvement in conservation and efficiency gains.
And we're going to continue to help them in that manner. And I think that's a lot of what today's announcement is about. Particularly from the Department of Agriculture. So with that, I'll turn it back to you, Secretary Vilsack.
Tom Vilsack: I would just add that I think that this call reflects what producers want, which is coordination and collaboration and cooperation. But I think that producers want to know that someone's paying attention. That someone understands the hurt and pain that folks are suffering out there in the countryside. And that folks are willing to work collaboratively and together and smartly to provide as much assistance as possible.
I think that their needs for both a short term and a long term reaction and response to this in the short term, they like the notion and certainly appreciate the fact that resources are being directed to ranchers and to farmers for specific needs whether it's a storage tank or pipeline improvement. They also, I think, need technical assistance as we look at the way in which we can improve irrigation systems within the state of California. There's a lot of opportunity there for better water management.
And I think that they - they appreciate the fact that we know the link between our forests and water conservation and preservation which is why we have historically throughout this administration taken an all lands approach, coordinated effort between NRCS and the Forest Service and the state and sister agencies so that we're all working in the same direction, not at cross purposes.
And that we are leveraging our resources in the most effective way possible.
Moderator: Reporters, once again, if you'd like to ask a question, please let us know by pressing star 1 on your touchtone pad. We do have a few people on the line. Let's go to (AP).
AP: Hello. Secretary Vilsack, today's announcement was described as new help for producers. Can you lay out for us how money for cutting down trees and expanding habitat in Sierra Nevada's going to help out farmers?
Tom Vilsack: Well, basically it's - when you improve habitats, you're also improving the capacity of land to conserve and preserve water resources which is obviously at the end of the day what this is all about. There are certain actions and certain steps that can be taken with the resources in the Forest Service, for example.
If you're thinning out trees, you're basically preserving the old growth that does a better of job of maintaining and conserving water. We know from the experience throughout the west that better maintained and more resilient forests are directly and positively impact habitat. But they also impact both the quantity and quality of the water resource that's available to the 60 million people who live in the western US.
So this is - you get multiple benefits from this. This is why we coordinate, why we cooperate with each other. It's not just focusing on one aspect of the problem. It's basically taking a holistic view. And when you do it holistically; when you do collaboratively, you're essentially going to get a bigger bang for your buck.
You know, I guess, 25 million folks who are relying on this resource and relying on us to do as good a job as we possibly can and maintain soil health and maintain forest health. And these resources will be - will enable us to do it. It also recognizes that when you have four years of continuous drought, as Secretary Laird indicated, the most difficult stretch California has ever experienced, it does have an impact on the landscape.
And that impact on the landscape can sometimes result in ineffective and inefficient use and disbursements of water resources. That's why restoring streambeds, working on the channels, restoring meadows, that will help and impact wildlife. But it will also make sure that water resources are contained, preserved and conserved in the most appropriate and effective way.
Moderator: Let's continue with reporters on the line. Tim Hearden with Capital Press. Tim.
Tim Hearden: Thank you. Does - is this money in addition to the $110 million that was announced on the 12th of June or is there some overlap?
Tom Vilsack: This is separate from the resources that were announced earlier this month. This is separate. It's identifying resources within programs like ECWAG that are available in directing those resources in a very targeted, focused and specific way as opposed to the past when essentially this resource might have been distributed in sort of a shotgun, hit and miss kind of approach.
This is now again in coordination with the state, in coordination with the Department of Interior. We're going to figure out exactly who's doing what where to make sure that these resources are being used in the most effective and efficient way. Why? Because we have limited resources. The reality is with sequester and budget difficulties and fire suppression budgets taking a bigger and bigger chunk out of forest budget, it makes it more difficult for us to have the resources that we know are needed.
So every dollar that we do have we have to make sure we're using in an effective and leveraged way.
Moderator: Did someone else want to say something? I guess not. Let's continue with our callers on the line. Michael Doyle from McClatchy.
Michael Doyle: Yes. From anyone of the three, within a few days, members of the California Republic and Delegation will introduce again a California Water Bill. What do you not want to see in that bill? What would not be helpful?
Tom Vilsack: Let me ask Senator Laird or Secretary Laird if he has a response to this. I'm not passing the buck. But I think he probably is on the ground. And Deputy Secretary Connor, you could certainly weigh in as well because it does probably have a more profound and direct impact on some of the Department of Interior efforts. But - and I'll be happy to weigh in afterwards.
John Laird: Yes. This is John Laird. And I think we made ourselves clear with the statement last December. But I think we're really looking for people - we're really looking for people to cooperate. And we're really looking in many ways our voters by a 2/3 vote endorse the Water Action Plan and the different efforts to move ahead in California on whether it's storage, recycling, conservation as a way of life, wetlands restoration and forest health as part of water just as we talked about on this call and a whole host of other things.
And it's an "all of the above" strategy. And I think what we're really looking for is assistance in that "all of the above" strategy. And I need to figure out a way to get everybody working together in California. We would really like to enhance that through whatever efforts are done at the federal level.
Michael Connor: This is Mike Connor with the Department of Interior. And I would just reiterate those points that Secretary Laird just made. We do not want provisions that result in increased conflict amongst parties or that I think undermining collaborate efforts that exist now amongst the state, the federal government, NGO water users, any of the constituencies.
I think there is, as Secretary Laird pointed out, a number of areas where we can work together. We can improve our scientific understanding of the environment itself within the Bay Delta area. We've done - made some investments there in the last couple of years that I think have significantly improved our operations.
There's room to do more there. There is certainly room to do more in the area of conservation and efficiency measures as well as creating creative arrangements for sharing water between parties. And there of course is I think the items identified in the Governor's Water Action Plan which are comprehensive and reaching across all areas of improvement with respect to water resource issues, environment as well as water supply.
And we certainly want to be supportive of those efforts. So if - there's plenty, I think, of grounds to be collaborative and to reach some level of agreement amongst all the parties. That's what we like to see.
Tom Vilsack: And I would just simply add that I think the legislators would be potentially helpful if they crafted whatever legislation ultimately gets passed and signed by the governor that will work in concert with our original conservation partnership program. California, the Bay Delta area happens to be part of a critical conservation area.
California obviously has significant needs for the state and national conservation. So we would want them to continue to be competitive in that process to take full advantage of our conservation resources. So I would certainly look for a positive approach rather than a negative one.
Moderator: We've got another caller on the line. Allyson Versprille from Bloomberg News.
Allyson Versprille: Hello. I wanted to ask what other funding do you plan to dedicate to the drought this year either in California or the US west?
Tom Vilsack: Well, I'd say a couple of answers. You know obviously it's difficult to predetermine what's going to happen between now and the end of the year. We obviously have budget constraints. But a couple of things. One, we're working collaboratively with the Department of Labor to address the issue that Secretary Laird alluded to, which is that the farmworkers have been negatively impacted by the drought.
And trying to figure out ways in which we can potentially help there. We are continuing to use our remaining ECWAG dollars, CSP dollars, our conservation resources in potentially the most effective way possible. I would expect and anticipate that there may be a claim or two for disaster assistance.
Those resources may be allocated. There may very well be payments made under the various programs. We - you know we may be looking at the possibility of payments under some of the safety net programs. There's obviously a tremendous amount of resource that the forest service will continue to spend to the extent possible that's not eaten up by fire suppression or resilience and restoration efforts.
Our rural development resources will continue to look for ways in which we can help create business opportunities that we can help fund water and waste water treatment facilities that can be more effective. And we will obviously continue to identify research dollars that will go into the water quality research initiative that was announced last year.
There will be additional work done by our farm service agency that made the emergency loans that could be forthcoming. There may be ownership and operating loans that are in the process of being completed. So USDA is going to use all of its tools and all of its' resources to the extent possible to do what we can to make sure that we're trying to be as helpful as we possibly can.
And I'm sure that that probably could speak for every federal agency that has resources and concerns about this. So they're going to do everything they possibly can, given the budget constraints that we face which is why the president has been so insistent that we move away from a failed policy of sequestering and get to a point where our budget really reflects the realities and the needs out there.
Moderator: Gentlemen, any final thoughts?
Tom Vilsack: I just simply want to do two things. One, I want to acknowledge that there is a lot of suffering out there among producers and among the people in the state of California. And we want them to know that we are sensitive and compassionate about the challenges that they face. And just secondly that we are here to help in both in the short term to the extent we can and also to look for long term strategies as we deal with changing climate, changing weather patterns.
That's why we establish climate hubs. That's why we are looking at ways to mitigate and adapt to the changing landscape here. And why we are committed to working as closely as possible with Department of Interior and the State of California and our producer groups and our environmental groups, conservation groups to do the very best job we can with the resources that we have.
Moderator: And with that, thank you everyone for joining us for our call. And that ends the call for now.
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