In a landmark move Friday, the House passed a sweeping climate change bill (H.R. 2454) on a razor-thin 219-212 vote. The legislation now moves to the Senate where it is likely to be marked up in committee before the month-long August recess.

The legislation is intended to reduce carbon-intensive greenhouse gas emissions (GHGs) 80 percent by 2050 from 2005 levels. It will impose caps on large GHG emitters, thereby forcing them to employ new technologies to reduce those emissions, or buy offsets from clean industries. Agriculture is one the potential sources of carbon offsets.

House Agriculture Committee Chairman Collin Peterson (D-MN) was able to amend the bill with a number of key provisions for agriculture. First, agriculture is exempt from becoming a "capped" sector that would be subject to the same reduction commitments as power plants and petroleum refineries. Second, the U.S. Department of Agriculture will have primary authority for administering the carbon offsets program, instead of the Environmental Protection Agency.

Also, Rep. Dennis Cardoza (D-CA) was able to insert a provision in the bill that provides $1 billion over ten years for an incentive program to assist agriculture industry members that may be unable to benefit from the current carbon offset program, including fruits and vegetables, in employing future carbon-sequestration technology and practices.

"While we appreciate the work by the House Agriculture Committee and Congressman Cardoza for negotiating a better set of circumstances for agriculture under this bill, we continue to have concerns about direct impact and potential long-term benefits this legislation will have for fruits and vegetables companies," said Kam Quarles, Vice President of Government Relations/Legislative Affairs. "The fact remains that we currently have 3 million acres of permanent tree crops (fruits, nuts, vines) planted in this country that are contributing to carbon sequestration and improving the environment who will not receive any credit under this bill. In addition, the current biomass definition from the legislation gives little hope for our row crop members to take advantage of new programs that have been established for climate change. Once the Senate marks up its bill, it will further clarify some of those answers."

Following the House action, Secretary of Agriculture Tom Vilsack invited agriculture interest groups to USDA to discuss the Administration's views on climate change. During the meeting, United Fresh raised the issue of the unique nature of the fresh produce industry and some of the challenges we face in the climate change debate.

"It is critical for USDA to establish some concrete analysis that shows the tangible benefits this legislation will have for agriculture," said Robert Guenther, senior vice president of public policy for United Fresh. "Until that time we can only discuss theoretical gains that may or may not come to fruition should this legislation become law."