Summer 2020 Kansas Agribusiness Retailers Association 816 SW Tyler Topeka, KS 66612 (785) 234-0463 ksagretailers.org ASSOCIATION STAFF Ron Seeber President & CEO Randy Stookey Senior Vice President General Counsel Staci Storey Senior Vice President Chief Financial Officer Shari Bennett Vice President Event Planning Samantha Tenpenny Director of Member Services Lisa Anschutz Senior Director of Internal Operations Trae Green Associate Vice President Sidney Storey Administrative Assistant BOARD OF DIRECTORS Lance Nelson Chairman Dustin Kuntz Vice Chairman Kevin Dieckmann 2nd Vice Chairman Clark Pearson Immediate Past Chairman Gary Beachner Bryan Bucl Troy Coon Yance Farney Justin Foss Bill Garner Tim Giesick Jim Grilliot Jeff Holling Rachel Hurley
Nick Krehbiel Brian Laverentz Jami Loecker Warren Mayberry Kevin Mears Scott Morris Justin Ochs O.J. Pearl Dave Spears Mark Wegner
Editors: KARA staff Photos: Cover (iStock.com/oticki)
Kansas Agribusiness Retailers Association (KARA) has been working around the clock as events unfold during this unprecedented time in our world. We are doing our best to keep you informed on how COVID-19 decisions are affecting agribusiness. We held weekly phone meetings with Kansas Secretary of Agriculture Mike Beam and his staff at Kansas Department of Agriculture where we relayed the message that even a temporary shut down of any aspect of production agriculture would be ill-advised and would have permanent detrimental repercussions to Kansas and the country.
TABLE OF
CONTENTS 03 PRESIDENT’S LETTER Are you better off now than you were four years ago in regard to regulation?
10 DICAMBA UPDATE Developments over the last three months regarding dicamba
04 KANSAS AGRI BUSINESS EXPO CANCELED Sadly due to the pandemic, we were forced to cancel our 2020 expo
12 KARA NO TIES TOURS President and CEO Ron Seeber hit the road this summer
07 INDUSTRY NEWS Updates on state, federal and industry news affecting your business
13 KARA ANNUAL MEETING We didn’t get to host this meeting in person, but we conducted our business via Zoom
08 KANSAS CAPITOL REVIEW This was anything but a regular session given the current circumstances we’re facing in our country
14 KARA UNVEILS REFRESHED LOGO KARA lifted the curtain on its newlyredesigned logo with an accompanying tribute video to its membership
The Kansas Agribusiness Update is published quarterly for the members, friends and affiliates of the Kansas Agribusiness Retailers Association. Email contributions to: Trae Green, trae@kansasag.org. Annual subscriptions for members can be purchased for $25.00. © 2020 KARA. Read this newsletter online at www.ksagretailers.org/printnewsletters. Advertising does not influence editorial decisions or content. KARA reserves the right to refuse, reject, or cancel any ad for any reason at any time without liability.
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SAFE AND ABUNDANT FOOD THROUGH SOUND SCIENCE
PRESIDENT’SMESSAGE RONALD SEEBER
President and CEO
Ron Seeber was hired as KARA’s president and CEO in October 2017 after working for the association since July 2008. An expert in state and federal legislative affairs, Seeber also worked for Senator Bob Dole in policy and political capacities, spending his entire career in the regulatory arena.
DEAR KARA
MEMBERS
“
The upcoming election is an important one albeit one with a lot of background noise and political spin. History, however, has a pretty good track record of repeating itself. Please keep that in mind as you vote in November.
Ugh. It’s an election year. However, in our world of agribusiness, it is nearly impossible to put politics aside when it can directly affect our livelihood. Especially with the 24-7 non-stop information overload brought to you by your television, computer, tablet and personal hand-held gadget. With this letter, I am not going to tell you who to vote for this year. It would not matter if I did. Instead, I am going to ask KARA members a modified question Ronald Reagan posed to voters during the 1984 presidential campaign, “Are you better off now than you were four years ago -- with regard to government regulation?” Four years ago, the administration in power was in the midst of implementing the Waters of the United States or WOTUS rule. The 2015 rule granted the federal government regulatory control over virtually any waters – and many land areas that only temporarily hold water – assuming a scope of authority Congress never authorized. For example, under the proposed rule, road ditches and low lying areas in fields that retained water after a hard rain were both likely to be “jurisdictional waters” falling under the regulatory powers of the EPA. Fortunately, in February of 2018, recognizing the legal flaws and agency overreach embodied in the 2015 rule, President Donald Trump signed an executive order directing EPA to reexamine the 2015 rule and consider whether to repeal or revise it. The 2015 rule was subsequently revised and replaced by the EPA with a more reasonable version of the rule. In January of 2017, in the final days of the Obama administration, the EPA implemented dramatic modifications to the Risk Management Program (RMP) without stakeholder input. After reviewing those 2017 changes, the Trump administration deemed they were not reasonable, practical, or cost effective and were not necessary to ensure the
prevention of accidental releases. In addition, the new administration listened to stakeholder input and directed OSHA to no longer pursue its previous goal of requiring all anhydrous ammonia retail facilities to adhere to the economically prohibitive process safety management (PSM) standards. The current administration rolled back many of the changes in policy, and, in turn, saved the Kansas agricultural retail industry considerable regulatory and financial burdens. Finally, during the eight years of the Obama administration, the EPA had a “punitive only” approach to implementing regulations and punishing those in violation. KARA staff has found, from personal experience the current administration’s EPA has proactively reached out to our industry and uses a “carrot and stick” approach to regulatory education and implementation. As an example, KARA and the EPA have worked together to organize and promote Chemical Accident Prevention Workshops at our member locations. This outreach not only provided better education and protection to KARA members, but also opened lines of communication between regulators and the regulated. The upcoming election is an important one, albeit one with a lot of background noise and political spin. History, however, has a pretty good track record of repeating itself. Please keep that in mind as you vote in November.
RONALD C. SEEBER President and CEO Kansas Agribusiness Retailers Association ron@kansasag.org | 785.234.0463
Summer 2020
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KANSAS AGRIBUSINESS RETAILERS ASSOCIATION
2020 Expo Canceled Due to COVID-19 Due to ongoing efforts to mitigate the spread of COVID-19, the boards of directors for Kansas Agribusiness Retailers Association (KARA) and Kansas Grain and Feed Association (KGFA) jointly made the decision to cancel the 2020 Kansas Agri Business Expo scheduled for Nov. 18 – 19 at the Century II Convention Center in Wichita. The Expo, a jointly-coordinated venture between KARA and KGFA, is annually the largest indoor agribusiness tradeshow in the Midwest, drawing more than 1,100 attendees and 150 exhibitors. “We wish to be as respectful as possible to our attendees, exhibitors, vendors and service providers,” said Ron Seeber, President and CEO of KARA and KGFA. “Both boards of directors met and it was a very sad, but necessary decision to cancel our show for 2020. The logistics around social distancing and city enforcement procedures would have made the Expo take a significant step back and we did not want to put on a subpar experience for everyone involved.” KARA and KGFA staff are already headed to the drawing board on ideas and themes for November 2021 which will mark the 35th Kansas Agri Business Expo. “We have high hopes for our 35th show,” said Shari Bennett, Vice President of Event Planning and Expo Manager. “We hope 4
Kansas Agribusiness Update
things return to normal next year and we can have the biggest, most well-attended show we’ve ever had.” The scheduled dates for the 2021 show are slated for November 17 – 18. 1A RECERTIFICATION HELD IN CONJUNCTION WITH EXPO TO BE NOV. 5 As announced previously online, Kansas Agribusiness Retailers Association’s annual 1A, ag plant and commercial application recertification course held in conjunction with the Expo will be in EITHER Salina or Lindsborg on Thursday, November 5, 2020. For the first time, attendees will have the option to recertify in-person or online via recorded Zoom sessions. Both in-person and online programs are slated to be FULL RECERTIFICATION programs, including the Core Hour, needed to recertify.
President and CEO Ron Seeber “The logistics around social distancing and city enforcement procedures would have made the Expo take a significant step back and we did not want to put on a subpar experience for everyone involved.”
SAFE AND ABUNDANT FOOD THROUGH SOUND SCIENCE
KANSAS
COVID-19 NEWS
KARA helps secure motor carrier extension KARA During the Pandemic Kansas Agribusiness Retailers Association (KARA) has been working around the clock as events unfold during this unprecedented time in our world. We are doing our best to keep you informed on how COVID-19 decisions are affecting agribusiness. We held weekly phone meetings with Kansas Secretary of Agriculture Mike Beam where we relayed the message that even a temporary shut down of any aspect of production agriculture would be ill-advised and would have permanent detrimental consequences to Kansas and the country. A quick rundown of the services we’ve provided since publication of the previous Agribusiness Update in April is below:
Kansas Agribusiness Retailers Association (KARA) has been working with the Kansas Highway Patrol and Governor Laura Kelly to extend truck weight waivers amidst the COVID-19 pandemic. With the shortage of licensed truck drivers an ever-growing issue, KARA has heard from several members who have been able to effectively utilize Governor Laura Kelly’s executive orders which allow motor carriers and persons operating commercial vehicles actively participating in COVID-19 relief and restoration efforts to haul up to 10 percent more than their licensed weight on Kansas highways, not to exceed 90,000 pounds. KARA has been successful in getting the order renewed three times, including on August 17 when the Governor extended it to September 14, 2020. 1. In accordance with the FMCSA’s declaration under Title 49 C.F.R. § 390.23(a)(l)(i), Title 49 C.F.R §§ 390-399 are hereby suspended for motor carriers and persons operating commercial vehicles actively participating in COVID-19 relief or restoration efforts, except that 49 C.F.R. §§ 392.2, 392.3, 392.80, and 392.82 remain in effect. 2. Motor carriers and persons operating commercial vehicles actively participating in COVID-19 relief and restoration efforts may haul up to 10% more than their licensed weight on Kansas highways, not to exceed 90,000 pounds.
3. All other applicable state and federal regulations shall continue to apply, including but not limited to: Title 49 C.F.R. Part 382, Controlled Substances and Alcohol Use and Testing; the Kansas Motor Vehicle Driver’s License Act, K.S.A. 8-234 et. seq., and Title 49 C.F.R. Part 383 Commercial Driver’s License Standards as adopted by the Kansas Uniform Commercial Drivers’ License Act, K.S.A. 8-2,125 et. seq., the federal Minimum Levels of Financial Responsibility (insurance requirements) Title 49 C.F.R. Part 387 as adopted by K.A.R. 82-4-3n and state insurance requirements as provided in K.A.R. 82-4-23; and, adherence to the regulations governing the Transportation of Hazardous Materials as provided Title 49 C.F.R. 397 and adopted by K.A.R. 82-4-3k and Parts: 107, 171-173, 177, 178 and 180 as adopted by K.A.R.82-4-20. 4. The licensing, certification, and permitting rules and regulations as required by the Kansas Corporation Commission are temporarily suspended for motor carriers and persons operating commercial vehicles actively participating in COVID-19 relief or restoration efforts. 5. The registration and fuel tax permits as enforced by the Kansas Department
APRIL 09, 2020 Distributed the Department of Labor’s Occupational Safety and Health Administration new enforcement guidance on the use of respiratory protection equipment certified under international standards or other jurisdictions during the coronavirus disease pandemic. APRIL 14, 2020 Contacted the Kansas Highway Patrol and Governor Laura Kelly for an extension to the 10 percent weight waiver up to 90,000 lbs for trucks hauling essential goods and supplies. APRIL 16, 2020 Distributed Governor Laura Kelly’s official extension of the statewide stay at home order. APRIL 17, 2020 Distributed information on the Department of Homeland Security and USCIS temporary final rule to amend certain H-2A requirements to help U.S. agricultural employers avoid disruptions in lawful agricultural-related employment, protect the nation’s food supply chain, and lessen impacts from the coronavirus (COVID-19) public health emergency. APRIL 21, 2020 Distributed a question and answer session from the Federal Motor Carriers Safety Administration regarding state driver licensing agencies and commercial driver’s license holders during the pandemic. APRIL 30, 2020 Distributed Governor Laura Kelly’s official plan to re-open Kansas. MAY 18, 2020 Contacted the Kansas Highway Patrol and Governor Laura Kelly for an extension to the 10 percent weight waiver up to 90,000 lbs for trucks hauling essential goods and supplies. JUNE 2, 2020 Distributed a list of KARA-affiliated personal protection equipment distributors.
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SAFE AND ABUNDANT FOOD THROUGH SOUND SCIENCE
KANSAS
COVID-19 NEWS
KARA HELPS EXTEND WAIVER
ON TRUCK WEIGHTS
Continued from Page 5
of Revenue are temporarily suspended for motor carriers and persons operating commercial vehicles actively participating in COVID-19 relief or restoration efforts. 6. Motor carriers and persons operating commercial vehicles actively participating in COVID-19 relief or restoration efforts must still obtain the requisite over-dimension/ overweight permits as required by the Kansas Department of Transportation prior to operating; however, the fees associated with these permits are temporarily waived. 7. Except as specifically stated in this order, all other state motor carrier laws or regulations remain in full force and effect. 8. This order supersedes any contrary order by any local health department regarding motor carriers and should be read in conjunction with previous executive orders responding to the COVID-19 pandemic. Any contrary provision in previous executive
orders is superseded by this order. This document shall be filed with the Secretary of State as Executive Order No. 20-57. It shall become effective immediately and remain in force until rescinded, until 11:59 p.m. on September 14, 2020, or until the statewide State of Disaster Emergency extended by House Bill 2016 enacted during the June 2020 special session relating to COVID-19 expires, whichever is earlier.
KARA During the Pandemic JUNE 29, 2020 Distributed information on Governor Laura Kelly’s statewide mask mandate. JULY 15, 2020 Once again contacted the Kansas Highway Patrol and Governor Laura Kelly for an extension to August 14, 2020 of the 10 percent weight waiver up to 90,000 lbs for trucks hauling essential goods and supplies. AUGUST 13, 2020 Distributed information regarding the Kansas Dept. of Commerce’s state grant program for businesses affected by the pandemic. AUGUST 17, 2020 Contacted the Kansas Highway Patrol and Governor Laura Kelly for an extension to the 10 percent weight waiver up to 90,000 lbs for trucks hauling essential goods and supplies. Let us know how we can help. If there’s anything your association can do to better serve you, please reach out by phone: 785.234.0461 or by email (membership@kansasag.org).
KARA Releases Sponsorship Appreciation Video In early September, Kansas Agribusiness Retailers Association compiled a thank you video to its 2020 sponsors for sticking by the association’s side during the pandemic. The video, along with a corresponding message from President and CEO Ron Seeber read: “This message is to express our sincere gratitude for our 2020 Kansas Agribusiness Retailers Association sponsors. This year in particular, our sponsors have been a buoy of support in lieu of canceled event income, reduced training revenue and other detrimental budgetary effects of the pandemic. As a small sign of gratitude, please view the video at right we produced expressing our thanks.
As always, we are here to assist with anything our members may need. Please let us know how your association can continue to be of service.” For more information on KARA’s sponsorship program or how to become involved, call us at 785.234.0463 or visit ksagretailers. org/sponsors/.
To view the video, point your smartphone’s camera at the QR code to left or visit https://www.ksagretailers. org/industry-news/amoment-of-gratitude-forour-sponsors/.
Summer 2020
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KANSAS AGRIBUSINESS RETAILERS ASSOCIATION
Capitol
REVIEW
By: Randy Stookey
The Kansas Legislature was initially scheduled to return for a full veto session in April, but that date was postponed in response to concerns over the COVID-19 pandemic. On Thursday, May 21, the Kansas legislature returned for what we anticipated to be one final day of business in 2020. Through 24 straight hours of debate and deliberation, conference committees met and assembled multiple bill packages. The lawmakers left, anticipating the end of their work schedule until Governor Laura Kelly called them back. 8
Kansas Agribusiness Update
SAFE AND ABUNDANT FOOD THROUGH SOUND SCIENCE
Before being called back by Kelly later in the month, the truncated timeframe with which the legislature had to conduct its final business, leadership limited action to only those bills which were arguably related to the pandemic. The weighty issue of Medicaid expansion came up only once, in the Senate, as an attempted amendment. POSITIVE RESULTS FROM LEGISLATIVE EFFORTS As we have reported previously, Kansas has some of the highest electric utility rates in the region. In order to make Kansas a more competitive state to operate your business, your Association joined with other stakeholders in pushing for legislation to lower those rates. Kansas public utilities have historically included in their rates, an amount to compensate them for the state corporate income taxes that they pay. In fact, while the utilities have collected those monies, they have not actually paid those taxes to the State for at least the last five years as their income tax liability had been eliminated by a combination of accelerated depreciation
and tax credits. This year, your Association successfully lobbied for passage of Senate Substitute for House Bill 2585, a bill which exempts certain public utilities from paying an income tax and requires those savings to be passed directly to rate payers through lower utility rates. The legislature passed this bill and it was signed into law by Governor Kelly. Under this legislation, the Kansas Corporation Commission (KCC) required the jurisdictional electric and natural gas utilities to file tariffs reducing their rates to reflect the elimination of their state corporate income tax, effective January 1, 2021. The utility companies have reported that, as a result of these electric and gas rate reductions, Kansas ratepayers will save $37,087,322 each year. This is a reduction of 1.75 percent off the existing rate. Here are the rate reductions reported by each public utility: • Evergy Kansas Central (Westar) $21,629,594 (phased in between January 1, 2021 and January 1, 2023) • Evergy Metro (KCP&L / Kansas) -
$8,580,710 Kansas Gas Service - $4,874,974 Atmos Energy - $1,116,449 Black Hills Energy - $717,453 Empire District Electric / Liberty Utilities - $168,141 • Total Annual Rate Reduction $37,087,322 • • • •
COVID-RESPONSE BUNDLE BILL The last, and most complex, piece of legislation passed by the legislature before returning was Conference Committee Report on Senate Substitute for HB 2054. The legislation included, inter alia, the following: Kansas Emergency Management Act – The legislature implemented statutory changes to the Kansas Emergency Management Act (KEMA). These changes – recommended by Kansas Attorney General Derek Schmidt – limit the Governor’s authority by requiring the Governor to receive permission from the State Finance Council before issuing any new COVID-19-related emergency proclamation. In addition, the State Finance Council – made up of legislative leadership Continued on Page 18
Summer 2020
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KANSAS AGRIBUSINESS RETAILERS ASSOCIATION
EPA Issues Cancellation Order for Dicamba Products On June 3, 2020, the U.S. Court of Appeals for the Ninth Circuit issued a ruling that vacates current U.S. registrations of certain low-volatility dicamba products, including Engenia®, FeXapan®, XtendiMax® and Vaporgrip Technology® Herbicide. The ruling comes after a group of environmental organizations filed a petition with the Court challenging the U.S. Environmental Protection Agency’s 2018 registration decision. Although the order intended to clarify the circumstances in which these products can be used, several questions remained unanswered. KARA and Kansas Dept. of Agriculture are in ongoing discussion with the EPA and will provide updated information as it becomes available. The order specifically affects the dicamba products: Engenia, FeXapan, and Xtendimax with Vaporgrip Technology. Other dicamba products are not affected by the order. SALE OF EXISTING STOCK Currently registered Kansas pesticide dealers may sell any of the three cancelled dicamba products from stock received on or before June 8, 2020. Such sales shall not be made after July 31, 2020, and all sales must be to end users of the products (commercial or private certifications). The labels are still in force, so restricted use pesticide sales records must be maintained. Any of the cancelled products received 10
Kansas Agribusiness Update
after June 8, 2020, (regardless of when they were ordered and paid for) shall not be sold and may not be distributed except for being returned or properly disposed.
(regardless of when they were ordered or paid for) shall not be applied or otherwise distributed except they may be returned or properly disposed.
APPLICATION OF EXISTING STOCK Kansas pesticide business licensees may apply any of the cancelled products according to the product’s label until July 31, 2020. Products applied shall be limited to those in stock on or before June 8, 2020, or acquired from a currently registered Kansas pesticide dealer. Producers holding current private applicator certifications may apply any of the cancelled products according to the product’s label until July 31, 2020. Products applied shall be limited to those in stock on or before June 8, 2020, or acquired from a currently registered Kansas pesticide dealer. Any of the cancelled products received after June 8, 2020, from a supplier other than a Kansas registered pesticide dealer
JULY 31, 2020 DEADLINE The only permitted movement of any of the three cancelled products after July 31, 2020, is to return it to the registrant or proper disposal of the product. MOST RECENTLY As seen on the following page, on August 31, Kansas Agribusiness Retailers Association organized a coalition of industry stakeholders and sent a letter to United States Environmental Protection Agency Administrator Andrew Wheeler regarding timely consideration and approval of registration of dicamba herbicide product labels.
SAFE AND ABUNDANT FOOD THROUGH SOUND SCIENCE
KARA Coordinates Coalition Letter to EPA on Dicamba Kansas Agribusiness Retailers Association (KARA) organized a coalition of crop production stakeholders and sent a letter to United States Environmental Protection Agency Administrator Andrew Wheeler regarding timely consideration and approval of registration of dicamba herbicide product labels on August 31. As new formulation dicamba products, when applied in accordance with the label directions and in conjunction with dicamba-tolerant trait crops, have been used effectively in the production of soybeans and cotton in Kansas, stakeholders in production agriculture wrote to the EPA urging expedited agency action on the issuance of new registrations. The groups included KARA, Kansas Soybean Association, Kansas Cotton Association, Kansas Farm Bureau, Kansas Association of Conservation Districts, Kansas Cooperative Council, Kansas Grain and Feed Association and Renew Kansas Biofuels Association. “Members of our coalition of Kansas agricultural stakeholder organizations are requesting the timely consideration and approval of registration of dicamba herbicide product labels that include directions for over-the-top, post-emergent application on dicamba-tolerant crops,” KARA President and CEO Ron Seeber said. “As crop rotation and input decisions for
next year are being made by agricultural producers right now, we urge the agency to issue new registrations for these products as soon as possible.” The letter requested the agency consider and approve a multi-year registration of product labels with over-the-top, postemergent application directions on dicamba-tolerant crops that are clear and understandable for producers and commercial applicators, and that the new registration be released in the near future. New formulation dicamba products, when applied in accordance with label directions and in conjunction with dicamba-tolerant trait crops, have been used effectively in the production of soybeans and cotton in Kansas. The letter informed EPA that the use of over-the-top, post-emergent application of dicamba herbicide on dicamba-tolerant crops has become an essential part of controlling post emergent weed growth and ensuring that crops are able to make use of the available water and nutrients in the soil.
Point your smartphone’s camera at the QR code above to view a PDF of the full KARA comment.
President and CEO Ron Seeber “As crop rotation and input decisions for next year are being made by agricultural producers right now, we urge the agency to issue new registrations for these products as soon as possible.”
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KANSAS AGRIBUSINESS RETAILERS ASSOCIATION
KANSAS AGRIBUSINESS RE TAILERS
NO TIES TOURS Kansas Agribusiness Retailers Association (KARA) staff celebrated the summer months by ditching the ties for the first time in 2020 and hitting the Northern and Western Kansas highways to visit members. KARA cherishes the value of face-to-face time with its members at their place of business and looks forward to the No-Ties tours every year. “Why No Ties?” KARA President and CEO Ron Seeber rhetorically asked. “Because you can learn more and share more in a 30-minute face-to-face meeting at a member’s place of business than any other way.” During the more than 1,000 miles spent on the road, Seeber and Kansas Grain Inspection Service’s Jon Newcomer heard concerns from members about issues ranging from harvest conditions to the political landscape in 2021. The forthright and informed level of input received from members provided invaluable ammunition for KARA to better evolve, adapt and serve the needs of its members. Seeber appreciated KARA members’ ability to express ideas outside the normal confines of association goals and responsibilities and allow the association to be the premier voice for the industry. “It’s always great to get out and see our members, especially those who are a long way from Topeka,” Seeber said. “I enjoy getting out of the office and having those productive conversations every year.”
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Kansas Agribusiness Update
SAFE AND ABUNDANT FOOD THROUGH SOUND SCIENCE
2020 KARA Annual Meeting - Not the Meeting We Expected, but the One We Needed Due to cancellation of the in-person 2020 Kansas Agribusiness Retailers Association (KARA) annual meeting over concerns with the spread of COVID-19 (coronavirus), KARA held its 2020 annual meeting via Zoom on August 25 at 9:00 a.m. CST. Warren Mayberry, Corteva. Nelson asked KARA President and CEO Ron Seeber if there were any additional nominations, pursuant to the bylaws. There being none, a motion was made and seconded to approve the candidates, as presented. Motion passed. Nelson presented a memorandum MINUTES FROM THE MEETING ARE BELOW: regarding KARA bylaw amendments. Chairman Lance Nelson called the In addition, on February 21, 2020, the Kansas Agribusiness Retailers Association Board reviewed the Association bylaws to Annual Meeting to order at 9:00 a.m. (cst). review outdated provisions, provide for the The KARA annual meeting was held election of a Second Vice Chair, and make via Zoom to mitigate the spread of the other minor changes deemed relevant and COVID-19 pandemic. necessary. KARA staff provided notice of the annual Nelson asked if there was any new or meeting Zoom to all KARA members, old business to be discussed. There being including appropriate call-in information, via none, a motion was made and seconded to electronic mail, beginning August 4, 2020. conclude the business portion of the annual Nelson declared a quorum of the meeting. Motion passed. members participating in the meeting as Nelson gave a report on the association’s required by the KARA bylaws. activities in 2019, including member services, Nelson requested a nominating report the association expo, and other programs. from Second Vice Chairman Dustin Kuntz. Seeber thanked KARA sponsors, reviewed Kuntz presented the nominating report and the membership status of the association, slate of candidates: gave a financial report, and provided an Gary Beachner, Beachner Grain, Tim overview of KARA activities concerning the Gieseck, Garden City Coop, Jeff Holling, COVID-19 pandemic. CVA, Rachel Hurley, Bayer, Brian The annual meeting was adjourned at Laverentz, FMC, Nick Krehbiel, Kanza 9:20 am. Coop, Justin Ochs, Skyland Grain Chairman Lance Nelson (Alliance Ag & Grain), and Second Vice Chairman Dustin Kuntz (Harveyville Seed Company Inc.) and President and CEO Ron Seeber administered the KARA annual business meeting obligations and provided KARA’s annual ‘State of the Association’ report.
LANCE NELSON KARA Chairman
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As members of KARA, this annual event provides a platform to hear how the association works on your behalf. I’d like to remind you, it’s your support throughout the year that keeps our association strong. So, thank you for your membership.
Summer 2020
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KANSAS AGRIBUSINESS RETAILERS ASSOCIATION
KARA Unveils Refreshed Logo Following more than a year of conceptualizing, planning, sketching and revisions Kansas Agribusiness Retailers Association (KARA) has raised the curtain on its newly redesigned logo. Following direction received to enhance the Kansas Agribusiness Retailers Association (KARA) external brand during its board of directors strategic planning session in September of 2019, KARA is proud to unveil its refreshed logo. The association staff began evolving its external facing presence by rebuilding its database and accompanying website, launching a mobile app and now, refreshing its logo. “From the beginning in the 1960s, this association has always been about growth,” KARA President and CEO Ron Seeber said. “Crop protection has changed dramatically in even the last 20 years and as the gatekeeper for our industry in Kansas, we need to continue to change and modernize with it.” The refreshed logo incorporates green into the color scheme, representing growth
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Kansas Agribusiness Update
among the many crops KARA members are instrumental in nurturing. The artwork, which has the ability to stand alone on materials, morphs liquid droplets with a plant-like structure symbolizing nutrient and cropprotectant droplets KARA members provide to producers. “We were careful to respect our past while pushing forward and creating a new visual identity portraying the association as a symbol of growth – which we strive to be,” Seeber said. The transition to the new logo will be implemented using a cost-optimized, resource-conserving approach. KARA will immediately integrate the new logo on its digital platforms, but will deplete its already purchased stock of printed materials prior to making a permanent switch.
President and CEO Ron Seeber “We were careful to respect our past while pushing forward and creating a new visual identity portraying the association as being built on a strong foundation – which we are.”
SAFE AND ABUNDANT FOOD THROUGH SOUND SCIENCE
Ag Chemical Remediation Reimbursement Program The Agricultural Chemical Remediation Reimbursement Program (Program) provides financial reimbursement of expenses incurred while conducting remediation (cleanup) activities for agricultural chemical and fertilizer contamination. The Program is financed by fees on the commercial grain storage, ag-chemical, and fertilizer industries. The reimbursement program is administered by the Kansas Agricultural Remediation Board (KARB). In March of this year, after 19 years of service on the KARB, Board Chairman Larry Shivers stepped off of the board. Our industry is extremely appreciative of all of Larry’s leadership, hard work, and dedication in both developing this program and ensuring its success for so many years. Governor Laura Kelly appointed Kevin Dieckmann, Olathe, to fill the specialty chemical distributor seat on the Board, replacing Larry Shivers. Kelly also appointed Jodi Guetterman, Bucyrus, to fill the agricultural-producer seat on the Board. In addition, Kelly reappointed Kamyar Nikoomanesh, Lenexa, as the agricultural processor representative to the board, and also appointed him as the new Board Chairman. During the June 2020 KARB board meeting, KARB reimbursed 29 applicants a total of $150,586.57. The next KARB meeting will be held on Friday, Sept. 11, 2020. The deadline to submit applications prior to that meeting was August 14, 2020. There is currently no back-log of applications
to the fund, and applications are generally able to be reviewed for reimbursement in the quarter that they are submitted. If your facility is conducting agricultural chemical remediation activities either ordered by the Kansas Department of Health and Environment, or agreed to under the state
Voluntary Cleanup Program, please submit an application for reimbursement to the Board. The application form and information about the program are available at www. karb.org.
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Summer 2020
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KANSAS AGRIBUSINESS RETAILERS ASSOCIATION
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Kansas Agribusiness Update
DONOR SPONSORS $1,250
Allied Environmental Consultants, Inc. Farmers Cooperative Equity Co. Frontier Ag Inc. MFA/AGChoice Nutrien
GIVER SPONSORS $750
Agrilead Inc. Alliance Ag & Grain LLC American Implement, Inc. Central Valley Ag Cooperative Fairbank Equipment, Inc. Helm Fertilizer Corp.
Kansas Coop Council Midwest Laboratories Inc. Miller Elevator Inc. Pride Ag Resources Ward Laboratories Inc.
SAFE AND ABUNDANT FOOD THROUGH SOUND SCIENCE
INDUSTRYnews DOT Extends Waiver for CDL Drivers
DOT has extended the waiver for expiring Commercial Driver’s Licenses (CDLs) and permits until September 30, 2020 in response to the COVID-19 public health emergency. Source: Asmark Institute
DOT has extended the waiver for expiring Commercial Driver’s Licenses (CDLs) and permits until September 30, 2020 in response to the COVID-19 public health emergency. Many CDL holders have been unable to renew their licenses and are unable to provide medical certificates to their State Driver Licensing Agencies. In addition, many medical providers have canceled regularly scheduled appointments and drivers have been unable to obtain appointments for physical examinations with medical examiners who comply with the Federal Motor Carrier Safety Regulations.
Drivers claiming relief under this waiver must continue to carry a paper copy of their expired medical certificate. Asmark will continue to mark drivers that fall within the specified time-frame of the waiver as “Attention Needed” on both Snapshots and the monthly status reports. If your physician is accepting appointments, please don’t wait until the last minute to get your records updated.
CFATS Program Reauthorized for Three Years The Department of Homeland Security’s (DHS) Chemical Facilities Anti-Terrorism Standards (CFATS) program was set to expire on July 23rd but has been reauthorized for an additional 3 years. The amendment makes no program changes, but extends the program through July 27, 2023.
The CFATS program continues to identify and regulate high-risk chemical facilities to ensure they have security measures in place to reduce the risks associated with those chemicals.
Photo courtesy: cisa.gov. The Department of Homeland Security’s (DHS) Chemical Facilities Anti-Terrorism Standards (CFATS) program was set to expire on July 23rd but has been reauthorized for an additional 3 years. Source: Asmark Institute
KS Ammonia Facilities Pay Over $50,000 in Penalties EPA has reached settlements with two agricultural storage and supply businesses in Kansas to resolve alleged violations of Risk Management Program regulations. EPA inspected both companies in response to accidental releases of anhydrous ammonia that resulted in injuries to their employees. During the inspections, EPA determined that the companies failed to design their processes for handling
anhydrous ammonia in compliance with good engineering practices and failed to meet other requirements intended to ensure adequate measures are in place to prevent and respond to an accidental release. In addition to the civil penalties, one company also agreed to purchase emergency response and preparedness equipment for three local fire departments at an estimated cost of over $25,000.
EPA has reached settlements with two agricultural storage and supply businesses in Kansas to resolve alleged violations of Risk Management Program regulations. Source: Asmark Institute Summer 2020
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– must approve any new emergency proclamation that would order the closure of any business. Other changes to the KEMA require the Board of County Commissioners to approve any order issued by a local health officer. Corporate Limited Liability re COVID – Other provisions of the bill create the “COVID-19 Response and Reopening for Business Liability Protection Act” to provide limited-liability protections to businesses and other organizations, and to health care providers, from claims of injury, other than for gross negligence, related actions resulting in COVID-19 exposure. The legislation also provided product liability limitations for companies making certain products to assist with the COVID-19 pandemic. Unemployment Insurance Amendments – Amended Kansas unemployment compensation law to make it consistent with federal guidelines to ensure that Kansas remains eligible to receive COVID-related federal funds for the state’s unemployment compensation program. Federal COVID-Relief Funds – Kansas looks to receive approximately $1.25 billion in federal pandemic relief funds (through the federal CARES act). The funds may be used for expenses directly-related to the pandemic. This bill sets out the oversight and appropriation process for these funds through the Legislative Budget Committee. ANOTHER TRIP BACK TO TOPEKA On May 26, Governor Kelly announced she would use her constitutional authority to call the Kansas Legislature back in to a Special Session on June 3. The intent behind doing so was for her to veto CCR on Sen Sub for HB 2054, which passed during the marathon 24hour session, and would have restricted the Governor’s authority to issue emergency disaster orders under the Kansas Emergency Management Act. She directed the legislature to return to Topeka and asked that they pass a bill to extend her current emergency orders under the Act. The Legislature reconvened as requested and quickly passed House Bill 2016 as 18
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an amended version of the previous COVID-19 legislation. House Bill 2016 provides limited liability protections for businesses who manufacture or sell personal protective equipment as well as protections for businesses from lawsuits for potential COVID-19 exposure on their premises. Additionally, the bill amends the Kansas Emergency Management Act by strengthening legislative oversight of executive powers. Importantly, the bill also ratifies Governor Kelly’s COVID-19 state of disaster emergency Orders that were initially declared on March 12, 2020. These Orders were later continued by a concurrent resolution of the Legislature, and extended by the State Finance Council through May 26, 2020. Under House Bill 2016, the Orders are extended until September 15, 2020. The Governor has signed this bill. Following the final day of the legislative session on May 21st, Governor Kelly took action on the following bills that had been previously passed by the legislature: PROPERTY TAX RELIEF The legislature held hearings on more than a dozen bills this year offering property tax relief. Eventually, however, the legislature only passed one property tax bill: Conference Committee Report on House Bill 2702. In an attempt to increase transparency in the property tax process, the bill would have required county commissioners to hold a public hearing, and a public vote, in order to increase the local mill levy above a “revenue-neutral” rate. Governor Kelly vetoed this bill. ECONOMIC RECOVERY LINKED DEPOSIT LOAN PROGRAM The legislature passed a bill which would have created a new Economic Recovery Linked Deposit Loan Program for businesses in response to the economic downturn caused by the COVID-19 pandemic. This
10-year program would have made up to $60 million available for low-interest (2% below market rate) loans to business. The measure, was supported by Kansas Grain and Feed Association, Kansas Agribusiness Retailers Association, Renew Kansas Biofuels Association. Governor Kelly vetoed this bill. KANSAS PROMISE SCHOLARSHIP ACT The legislature passed Conference Committee Report on House Bill 2510, a bill which would establish the Kansas Promise Scholarship Act (KPSA). The Program would provide scholarships to eligible students for up to two years to attend an eligible postsecondary educational institution in an associate degree program, career and technical education program, or baccalaureate degree completion program. The bill was supported by the Kansas Grain and Feed Association, Kansas Agribusiness Retailers Association, and Renew Kansas Biofuels Association. Governor Kelly vetoed this bill.
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REGISTER TODAY
1A Recertification to be Hybrid Program Kansas Agribusiness Retailers Association is proud to announce plans for its 1A, ag plant and commercial application, recertification to be held in EITHER Salina or Lindsborg on Thursday, November 5, 2020.
On-site attendance includes meals and handouts for $140. In-person attendees must practice social distancing, wear masks in all common/gathering areas and be seated six feet apart. Attendees who wish to recertify remotely with a reliable computer, laptop or smartphone with internet service can sign up for the virtual program for $100.
SAMANTHA TENPENNY Director of Member Services
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To register for KARA’s 1A recertification course to be held on Nov. 5, point your smartphone’s camera at the QR code above, visit https://www.ksagretailers.org/ events-training/1a-ag-plant-andcommercial-applicator-recertification/ or call 785.234.0463.
For the first time, attendees will have the option to recertify in-person or online via recorded Zoom sessions. Both in-person and online programs are slated to be full recertification programs, including the Core Hour, needed to recertify. “Despite the Kansas Agri Business Expo being canceled this year, it was crucial to us we provide our annual 1A, ag plant and commercial applicator, recertification course,” Director of Member Services Samantha Tenpenny said. “We are hoping with the addition of a digital option we can accommodate anyone who needs to renew their license.” On-site attendance includes meals and handouts for $140. In-person attendees must practice social distancing, wear masks in all common/gathering areas and be seated six feet apart. Attendees who wish to recertify remotely with a reliable computer, laptop or smartphone with internet service can sign up for the virtual program for $100. Instructions will be sent to the email address provided on the registration form a few days prior to the event. A final location and agenda are coming soon.
Despite the Kansas Agri Business Expo being canceled this year, it was crucial to us we provide our annual 1A, ag plant and commercial applicator, recertification course. We are hoping with the addition of a digital option we can accommodate anyone who needs to renew their license.
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INDUSTRYnews Security Vulnerability Assessment The Asmark Security Vulnerability Assessment (SVA) is one of the first steps in developing your DOT security plan or enhancing security at your facility. It lists the materials you handle and identifies those with the potential for use as a weapon or target. It also provides for a full review of your current activities and operations from an operational and transportation security perspective. The SVA was expanded in 2014 to provide more emphasis on DOT issues and additional layers of security, which are programmed into the model and accredited by the Center for Chemical Process Safety (CCPS). Facilities that complete the assessment will receive a list
of recommended countermeasures to help offset their vulnerabilities, along with sitespecific information required in preparing their DOT Security Plan. The countermeasures can be used to further hone security at the facility and for transportation of hazardous materials. Facilities are prompted throughout the year regarding the status of their SVA in multiple ways: •Snapshots displays the facility’s numerical score, indicating the level of risk and when the last SVA was completed. For ESP facilities, the red light will come on when the SVA expires. •Lighthouse Executive Summary, provided as a mid-year checkup, will include
information about the SVA if the facility does not have a current one on file. Instructions are provided on how to complete an SVA. •Compliance Wizard used during the annual compliance “visit” will provide details about the facility’s SVA, and whether a current one is on file or not. If one needs to be completed or updated, it will be an action item on the facility’s “To-Do” list. A completed SVA that places the facility in a Low Risk status, should be reviewed every three years for updates; a Medium Risk status should be reviewed annually; and a High Risk status should be continually reviewed and countermeasures addressed until the facility is placed in at least a Medium Risk status.
Source: Asmark Institute
EPA Proposes More Transparent Guidance
EPA has issued a proposed rulemaking regarding the procedures for developing and issuing guidance documents and establishes a petition process for public requests to modify or withdraw those that are active.
EPA has issued a proposed rulemaking regarding the procedures for developing and issuing guidance documents and establishes a petition process for public requests to modify or withdraw those that are active. EPA will use an online portal to clearly identify which ones are active guidance documents. This is consistent with Executive Order
13891 that directed Federal agencies to finalize regulations that set processes and procedures for issuing guidance documents. A central principle of the Executive Order is that these documents should clarify existing obligations only. They should not be a vehicle for implementing new, binding requirements on the public.
Source: Asmark Institute
KARA submits comment to EPA on petition to revoke all Neonic residue tolerances EPA sought public comment on a petition by the Natural Resources Defense Council (NRDC) requesting EPA to revoke all tolerances for residues of neonicotinoid pesticides (Imidacloprid, Clothianidin, Dinotefuran, Acetamiprid, and Thiamethoxam), on the alleged basis that the analysis supporting the tolerances is flawed and the tolerances are unsafe for the American population. KARA’s comment stated the importance Kansas plays as a leading producer in agricultural crops and how adverse regulatory actions affect the sale of inputs and crop protection products utilized in feeding the world. 20
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“Use of neonics in seed treatments reduces the environmental impact on the crop production process by decreasing the necessary number of pesticide applications during the planting season. Seed treatment also decreases potential exposure to non-target species, including humans and pollinators. The agricultural industry is constantly evolving to improve seed treatment processes. Due to these technological advances, only milligrams of active ingredient are used per individual seed.”
KARA’s comment stated the importance Kansas plays as a leading producer in agricultural crops and how adverse regulatory actions affect the sale of inputs and crop protection products utilized in feeding the world. Source: Asmark Institute
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INDUSTRYnews EPA Releases Temporary Guidance on Respiratory Protection EPA has provided temporary guidance regarding respiratory protection requirements for agricultural pesticide handlers during the COVID-19 public health emergency. The temporary guidance provides for the use of alternative NIOSH-approved respirators offering equivalent or greater respiratory protection than those required on the pesticide label. It encourages hiring commercial applicator services with enough respirators and respiratory protection capabilities or opting to use agricultural pesticide products that do not require respirators. Lastly, pesticide applications could be delayed until another compliant option is available.
If all of those options have been exhausted, EPA’s guidance provides additional options with strict terms and conditions. These include the reuse and extended use of disposable N95 filter facepiece respirators, the use of “expired” respirators, the use of respirators certified in certain other countries or delaying the annual respirator “fit test.” EPA will, on a case-by-case basis, exercise its enforcement discretion for violations of respirator-related requirements provided that handlers and handler employers demonstrate that they have exhausted all available compliance options.
EPA has provided temporary guidance regarding respiratory protection requirements for agricultural pesticide handlers during the COVID-19 public health emergency. Source: Asmark Institute
DOT Issues Pre-Employment Testing Guidance On June 5th, DOT granted a 3-month waiver to relieve employers of commercial motor vehicle drivers during the COVID-19 public health emergency. The waiver extends the period under which drivers would qualify for a pre-employment drug testing exception from 30 days to 90 days. This relief allows employers to forego pre-employment testing for drivers who have participated in a controlled substances
testing program that meets certain requirements within the previous 90 days of hire or rehire. The waiver is subject to certain terms, conditions and restrictions but continues until September 30, 2020.
On June 5th, DOT granted a 3-month waiver to relieve employers of commercial motor vehicle drivers during the COVID-19 public health emergency. Source: Asmark Institute
2020 ERG Books Pushed Back Again
As previously announced, the updated DOT 2020 Emergency Response Guidebooks (ERGs) are being pushed back yet again due to the challenges encountered by COVID-19.
As previously announced, the updated DOT 2020 Emergency Response Guidebooks (ERGs) are being pushed back yet again due to the challenges encountered by COVID-19. Originally expected in the Spring, they were pushed back to this Summer. Now we’ve received word from the supplier that it will likely be late Fall before the updated version is released. Until the updated version is made available, you will want to continue using
the 2016 books. DOT requires hazardous materials shipments to be accompanied by emergency response information (49 CFR 172.602), and the ERG book can help you meet this requirement. A copy of the 2016 ERG should be placed in each vehicle that transports a DOT hazardous material until the new, updated version is released.
Source: Asmark Institute
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INDUSTRYnews Next Gen Fertilizer Challenges Announced US Environmental Protection Agency (EPA) and US Department of Agriculture (USDA) have announced the Next Gen Fertilizer Challenges, a joint EPA-USDA partnership and competition to advance agricultural sustainability in the United States. The competition includes two challenges that seek proposals for new and existing fertilizer technologies to maintain or improve crop yields while reducing the impacts of fertilizers on the environment. “The shared goal here is to accelerate the development of next generation fertilizers for corn production that can either maintain or increase crop yields while reducing environmental impacts to our air, land and water,� said EPA Administrator Andrew Wheeler. Along with EPA and USDA, the competition is coordinated with The Fertilizer Institute, the International Fertilizer Development Center, the National Corn Growers Association and The Nature Conservancy. The first challenge aims to identify existing Enhanced Efficiency Fertilizers (EEFs) that
meet or exceed certain environmental and agro-economic criteria. EEF is a term for new formulations that control fertilizer release or alter reactions that reduce nutrient losses to the environment. This challenge will not have a monetary prize, but winners will receive scientific evaluation of their product and recognition from EPA, USDA and other collaborators. The second challenge aims to generate new concepts for novel technologies that can help address environmental concerns surrounding agriculture practices while maintaining or increasing crop yields. A panel of expert judges will review the submissions. Each winner will receive at least $10,000. Registrants must submit their entries by October 30, 2020 for the first challenge, and by November 30, 2020 for the second challenge. Winners will be announced in the winter of 2021.
Photo courtesy: USEPA. US Environmental Protection Agency (EPA) and US Department of Agriculture (USDA) have announced the Next Gen Fertilizer Challenges. Source: Asmark Institute
DOT to Exercise Discretion for Random Testing
DOT may exercise discretion to determine not to enforce the minimum annual percentage random testing rates for drugs and alcohol. Source: Asmark Institute
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Kansas Agribusiness Update
DOT may exercise discretion to determine not to enforce the minimum annual percentage random testing rates for drugs and alcohol and the requirement that each employer ensure that the dates for administering random drug and alcohol tests are spread reasonably throughout the calendar year due to the COVID-19 public health emergency. However, employers capable of meeting these requirements must continue to do so. Employers must continue to select drivers at the required rate of 50 percent of their average number of driver positions for controlled substances, and 10 percent for random alcohol testing during the calendar year 2020. If a test is unable to be completed due to the COVID-19 public health emergency, the motor carrier must maintain written documentation of
the specific reasons for non-compliance. For example, employers should document closures or restricted use of testing facilities or the unavailability of testing personnel. Additionally, employers should document actions taken to identify alternative testing sites or other testing resources. Likewise, employers who are unable to ensure that the dates for administering random controlled substances and alcohol tests are spread reasonably throughout the calendar year should document the specific reasons why they did not meet this requirement. For example, in addition to the lack of available testing facilities or personnel, there may be other factors such as prolonged or intermittent driver furloughs due to the impacts of COVID-19.
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INDUSTRYnews Large Penalties for Untimely Spill Reporting
Recent enforcement actions by EPA remind companies of the need to immediately report releases that exceed reportable quantities or reach navigable waters.
Recent enforcement actions by EPA remind companies of the need to immediately report releases that exceed reportable quantities or reach navigable waters. One six figure penalty was issued to a company that failed to report when a product ran into the river in 2017. The company did not provide the required notification to federal, state and local emergency response officials. EPA alleged that the company did not notify the National Response Center (NRC) for more than 4 hours after learning of the
release. Another similar penalty came in Ohio to a chemical production company. Remember, EPA regulations require immediate reporting of hazardous material spills over reportable quantities to the NRC. While the term “immediate” is not defined by law, legislative history authorizes EPA to enforce for failure to report within 15 minutes.
Source: Asmark Institute
Clearinghouse Data for First 6 Months As of June, over 130,000 employers have registered for the FMCSA’s Drug & Alcohol Clearinghouse. There are now 971,914 driver accounts and over 1.1 million queries have been conducted. So far only about 25,000 violations have been reported to the Clearinghouse. Positive drug tests account for 80% of the total violations reported. Marijuana was the substance identified the most in positive drug tests. If a driver has a drug and alcohol program violation recorded against them
in the Clearinghouse, that driver must be removed from safety-sensitive functions, including operating a commercial motor vehicle, until they have completed the returnto-duty process. There are currently over 24,000 drivers in the return-to-duty process.
Photo courtesy: FMCSA Drug and Alcohol Clearinghouse. As of June, over 130,000 employers have registered for the FMCSA’s Drug & Alcohol Clearinghouse. Source: Asmark Institute
Prop 65 Labels Not Required on Glyphosate
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A US District Court Judge has issued a injunction. This could open the door to more decision preventing the State of California challenges of Prop 65 warning requirements from requiring Proposition 65 labels on in the future. glyphosate products. Prop 65 warning labels are required for chemicals known to the state to cause cancer. The ruling supports the First Amendment claim and grants a permanent
A US District Court Judge has issued a decision preventing the State of California from requiring Proposition 65 labels on glyphosate products. Source: Asmark Institute
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CONGRATULATIONS KAI WEED ID WINNERS
Congratulations to our 2020 Weed Identification winners at our annual Kansas Applicator Institute, Doug Mayo (Helena), Caleb Meyer (Helena) and Gavin Ray (McGraw Fertilizer).
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DOUG MAYO Helena
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CALEB MEYER Helena
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GAVIN RAY
McGraw Fertilizer