Industry warns rising energy and regulatory costs threaten processors and farms

Michael Bocadero of the Agricultural Energy Consumers Association and Roger Isom (food and fiber processing groups) detailed sharply higher electricity rates and the removal of some net energy metering options (NEM3 impacts) that have limited growers' ability to offset costs with on‑farm solar. "PG and E is proposing upwards of a 40% additional rate increase between 2027 and 2030," Bocadero warned, adding that ag faces higher electricity rates than other Western states.

Processing stakeholders said long‑term competitiveness requires funding for programs that help adopt cleaner, more efficient equipment and mitigate rising costs, citing the Food Production Investment Program and FPIP as examples. Lawmakers asked panelists for quick lists of priority investments they could pursue in the coming budget discussions.