CDFA Legislation Intent and Progress

1. CDFA Legislation Intent and Progress Kathy Kellogg Johnson Kellogg Garden Products February 28, 2007

2. Our Vision “Helping people create beautiful landscapes and gardens…Since 1925!”

3. % All Customers South 62% North 32% PNW 6% Total 100% Ontario WA 3 3 OR ID UT 2 2 NV N. CA Lockeford Vegas AZ 1 1 S. CA Hawaii Kellogg’s Market Presence • Ontario, CA • Lockeford, CA • Longview, WA

4. Private Sector Experience Ingredients & Claims Trace elements in Nitrohumus: • Trace minerals are present and available. • California sets minimums on levels of trace elements such that we cannot claim their mere presence. • We believe that we should be able to list trace minerals, as long as we don’t make claims about their availability and benefit. • We believe it is the environmentally responsible thing to do.

5. The Problem Secondary and micronutrient guarantee • Calcium (Ca) 1.0000% • Magnesium (Mg) 0.5000% • Sulfur (S) 1.0000% • Boron (B) 0.0200% • Chlorine (Cl) 0.1000% • Cobalt (Co) 0.0005% • Copper (Cu) 0.0500% • % Chelated Copper • Iron (Fe) 0.1000% • % Chelated Iron • Manganese (Mn) 0.0500% • % Chelated Manganese • Molybdenum (Mo) 0.0005% • Sodium (Na) 0.1000% • Zinc (Zn) 0.0500% • % Chelated Zinc MINIMUMS

6. Nutrient Rich Compost Hidden From View • If your compost contains less than the following: • Calcium 10,000ppm • Magnesium 5,000ppm • Sulfur 10,000ppm • Boron 200ppm • Copper 500ppm • Iron 1,000ppm • Manganese 500ppm • Zinc 500ppm YOU CAN’T LIST THEM

7. Private Sector Experience This is not what we wanna’ do! This is what we want to do!

8. History of Compost Regulation • 1970 Senator Ralph Dills rescued compost from being defined as a “RICRA” hazardous waste • HC Kellogg and Senator Dills put into legislation the “Fertilizing Materials Section” • Compost Defined

9. Compost Defined • Is it a waste? • Is it a resource? • Is it a plant food? • Is it a soil amendment How does it fall within the current structure?

10. Current Definitions • 14533. "Fertilizing material" means any commercial fertilizer, agricultural mineral, auxiliary soil and plant substance, or packaged soil amendment.

11. Current Definitions • "Agricultural mineral" means any substance with nitrogen (N), available phosphoric acid (P2O5), and soluble potash (K2O), singly or in combination, in amounts less than 5 percent which is distributed for farm use, or any substance only containing recognized essential secondary nutrients or micronutrients in amounts equal or greater than minimum amounts specified by the director, by regulation, and distributed in this state as a source of these nutrients for the purpose of promoting plant growth. It shall include gypsum, liming materials, manure, wood fly ash, sewage sludge not qualifying as commercial fertilizer, and captured dilute solutions.

12. Current Definitions • 14563. "Specialty fertilizer" means packaged commercial fertilizer labeled for home gardens, lawns, shrubbery, flowers, and other similar noncommercial uses. These products may contain less than 5 percent nitrogen (N), available phosphoric acid (P2O5), or soluble potash (K2O), singly or collectively, detectable by chemical methods.

13. Current Definitions • 14552. "Packaged soil amendment" means any substance distributed for the purpose of promoting plant growth or improving the quality of crops by conditioning soils solely through physical means. It includes all of the following: (a) Hay (b) Straw (c) Peat moss (d) Leaf mold (e) Sand (f) Wood products (g) Any product or mixture of products intended for use as a potting medium, planting mix, or soilless growing media. (h) Manures sold without guarantees for plant nutrients.

14. Current Definitions • 14517. "Bulk material" means fertilizing materials distributed in nonpackaged form or in a container containing more than 50 kilograms or 110 pounds.

15. Current Definitions • 14522. "Commercial fertilizer" means any substance which contains 5 percent or more of nitrogen (N), available phosphoric acid (P2O5), or soluble potash (K2O), singly or collectively, which is distributed in this state for promoting or stimulating plant growth. "Commercial fertilizer" includes both agricultural and specialty fertilizers. "Specialty fertilizers" may contain less than 5 percent nitrogen (N), available phosphoric acid (P2O5), or soluble potash (K2O), singly or collectively.

16. Current Definitions • 14548. "Natural organic fertilizer" means materials derived from either plant or animal products containing one or more nutrients other than carbon, hydrogen, and oxygen, which are essential for plant growth, which may be subjected to biological degradation processes under normal conditions of aging, rainfall, sun-curing, air drying, composting, rotting, enzymatic, or anaerobic/aerobic bacterial action, or any combination of these, which shall not be mixed with synthetic materials or changed in any physical or chemical manner from their initial state except by physical manipulations such as drying, cooking, chopping, grinding, shredding, or pelleting.

17. Current Definitions • 14525. "Compost" means a biologically stable material derived from the composting process. • 14526. "Composting" means the biological decomposition of organic matter which inhibits pathogens, viable weed seeds, and odors. "Composting" may be accomplished by mixing and piling in a way as to promote aerobic or anaerobic decay, or both.

18. ACP Meeting with CDFA • Meeting with Secretary Kawamura Staff • John Gundlach, Dr. David Crohn and Kathy Kellogg Johnson June 2006 • Meeting with CDFA Staff October 2006

19. Composting Labeling InitiativeGoal • To provide compost users with the information they need in order to to manage their soils, crops, and landscapes in an efficient, productive, and environmentally sustainable manner.

20. Composting Labeling Initiative Objectives • Create a section in the State of California Food and Agriculture Laws that recognizes the unique purpose and properties of composts. • Develop reasonable labeling standards that respect these unique purposes and properties. • Provide customers with information about macro and micronutrient concentrations in compost products. • Eliminate confusion with existing laws governing fertilizing materials that restrict nutrient claims with respect to composts. • Distinguish between composts, which are used to sustain and protect soils; and fertilizers, which are manufactured to supply nutrients. • Support federal and state environmental policies for sustainable organics, water, soil, air, and energy management • Develop an industry-supported funding and cost effective oversight mechanism.

21. A New Approach • The CDFA Staff willing to work on a whole new section of law regulating compost • We need industry consensus • A single voice • A non-controversial Bill in Fall 2007

22. Benefits of New Compost Section • Ability to communicate to the consumer • Accurate and scientific plant nutrient claims • Mill tax to fund CDFA’s governance

23. Risks of Proposing New Compost Section • Definition of compost is open to debate • The feedstock wars begin • Controversy turns off the consumer to compost • Raising the public “Fear Factor” • Infighting • Nutrients, salinity, maturity, stability, contaminants, pathogens

24. Risks of Proposing New Compost Section General Consumer apathy to the soil amendment category: • Majority of consumers have a low awareness of the soil category, most don’t know they need it. • They only think about it when purchasing green goods/plants if they think about it al all. • The category is confusing-planting mix, mulch, garden soil, soil conditioner, soil prep. • 60 percent of consumers do not purchase soil when they purchase plants. (National Gardening Survey) • Getting consumer interested in compost can be an uphill battle when they are not interested in the category. • Regulatory development resulting in controversy could impact the consumer.

25. Risks of Proposing New Compost Section The “Yuck” Factor: • Consumers are fine with animal waste and green waste, not human waste. • The competition uses it as a negative selling point-painting it with a negative brush, uses it on their bags and in their product knowledge to retailers. • USDA Organic Food Act not allowing the use of any type of sludge based product in organic production give the impression that they are ‘bad’.

26. Risks of Proposing New Compost Section Problems Marketing Compost Products Consumer apathy to the soil amendment category: • Majority of consumers have a low awareness of the soil category, most don’t know they need it. • They only think about it when purchasing green goods/plants if they think about it at all. • The category is confusing-planting mix, mulch, garden soil, soil conditioner, soil prep. • 60 percent of consumers do not purchase soil when they purchase plants. (National Gardening Survey) • Getting consumer interested in compost is an uphill battle when they are not interested in the category. • Labeling laws need to keep this in mind.

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