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MARCH 2005

National Grange Applauds House-Senate Effort on ESA Reform
On February 10, 2005, a joint press conference was held by House Resources Committee Chair Richard Pombo, Senate Environment and Public Works Subcommittee on Fisheries, Wildlife, and Water Chair Lincoln Chafee, U.S. Rep. Greg Walden and U.S. Senator Mike Crapo to announce that they will work in close coordination on the ESA reform. The National Grange applauds this effort as the unprecedented launch of a House-Senate partnership to improve and update the ESA.

The ESA has failed to conserve endangered and threatened animals and plants as intended and has violated the rights of individuals, particularly property rights. The National Grange has long championed reforming the Endangered Species Act and it remains one of the top legislative priorities. The National Grange has supported amendments to the ESA to justify all ESA management decisions through sound science and to balance all decisions to list a species as endangered against the economic health of a community.

"The Endangered Species Act is one of our most important laws and Congress will soon begin seeing proposals concerning it," said Senator Crapo. " We have agreed to work together with bill sponsors and I am determined to achieve this ESA improvement with bipartisan support for a consistent approach in both chambers. Our goal is to strengthen the ESA by improving habitat conservation and recovery, providing more and better incentives, and enhancing the role of states where appropriate. Overall, we believe the ESA can be less contentious and more effective." There is no specific legislative language yet, but general goals seem to be agreed among the House-Senate leaders including increased involvement by states, more incentives for private landowners, and strengthening scientific reviews before species are listed.

In the 108th Congress, two ESA reform bills were approved by the House Resources Committee - the Critical Habitat Reform Act and the Sound Science for Endangered Species Act Planning Act. They were designed to compensate private landowners for their voluntary conservation efforts and require peer-reviewed science as basis for ESA decisions. The National Grange hopes the newly activated House-Senate partnership to bring about a comprehensive ESA reform bill immediately in the 109th Congress.

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Grange Broadband Project Discussed at the APT Policy Forum
Mr. Don Whiting, the Washington State Grange's technology project coordinator, recently joined the panel discussion on innovative applications of telecommunications technologies at the Alliance for Public Technology (APT)'s Annual Policy Forum and Awards Luncheon on February 11, 2005 at the National Press Club in Washington DC. The Alliance for Public Technology is a non-profit membership organization founded in 1989 to foster public policy that ensures access to advanced technologies and communications services for all Americans. APT promotes this mission through research, professional analysis, publications and educational conferences on the challenges facing telecommunications policies at the federal, state and local levels and the impacts of these policies on consumer access to advanced telecommunications technologies. National Grange Legislative Director Leroy Watson serves on the board of directors and the executive committee of APT, representing the interests of rural Americans within the organization.

On that educational panel entitled "Case Studies: Transforming Lives Through Broadband," Whiting presented the Washington State Grange's innovative rural broadband access project to a national audience for the first time. Whiting told the conference how the project was planned, designed and implemented to demonstrate how rural communities could gain cost effective public access to high speed Internet broadband services using traditional land based broadband suppliers as well as state of the art satellite receivers. He explained that the three-year project, funded with support from the Bill & Melinda Gates Foundation, the Washington State Grange, local Granges and other community telephone providers, currently supports 15 local sites with two to four public access computers at each site, mostly in Grange halls. Demonstration sites were selected on the basis of their remote geography and the commitment of local volunteers to be trained to provide technical support for other members of their rural community with general Internet service, state of the art applications software and tutorials and training to utilize this new technology.

Whiting noted that a major challenge for equal access to high-speed Internet technologies was the fact that only seven of the proposed demonstration sites had access to traditional land based broadband Internet service via a phone or cable company. To bring the promise and benefit of high-speed Internet access to the other rural communities participating in the demonstration project, Whiting explained that the Grange had to employ innovative thinking "When the Grange needed a broadband service for those sites," Whiting told the audience, "we had to break through two persistent myths: 1. If you do not have DSL or cable, you are out of luck. 2. Rural areas can't get broadband access unless government forces carriers to provide service everywhere."

Whiting explained the Grange broke through these myths by employing and installing mid-band satellite receivers at these remote sites that could be managed and maintained by the local volunteer coordinators. The satellite based broadband systems were slightly slower than DSL or cable but were a significant upgrade from the 56k (or less) dial up telephone Internet service that was available in those communities before then. Whiting cited numerous examples of how these communities were making practical use of this technology: local businesses that were saving 1-3 hours per day and more reliable service than the dial-up system. The satellite broadband services are helping rural communities have better access to weather, crop and market information. Whiting concluded that this demonstration project shows that small rural communities can bring the benefits of 21st Century broadband technology to some of the most remote areas of the nation, especially if community service organizations, such as Granges, can participate in facilitating the process.

(From left: Don Whiting (WA State Grange), Bill Steel (President, National Grange) and Leroy Watson (Legislative Director, National Grange)

"Don Whiting's presentation before the Alliance for Public Technology's Annual Policy Forum in Washington, DC this year was a major eye opener for the Congressional staffers, Federal Communications Commission officials, state public utility commissioners, officials of major telecommunications companies and representatives for consumer advocates who attended the conference," said National Grange President Bill Steel. "Instead of looking at rural America as 'falling behind' urban and suburban areas in adoption of advanced telecommunications technologies, the Washington State Grange Technology Demonstration Project lays out a blueprint on how innovative thinking and vibrant local communities can leapfrog over the limitations of traditional telecommunications technologies to bring the benefits of advanced telecommunications services to the most remote communities of our nation. A century ago, the Grange was the national leader in securing Rural Free Delivery Mail for rural America. Today, the Washington State Grange has demonstrated that that leadership role has been passed to our generation to develop policies and programs that will bring state of the art high-speed broadband Internet access to all of our rural communities," concluded Steel.

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Splenda's Advertising Campaign Confuses Consumers
On February 14, the National Grange joined other agricultural and consumer organizations in a press conference at the National Press Club in Washington D.C. to raise concern with the advertising and marketing practices of Splenda, an artificial sweetener. Splenda is not natural sugar. It is made in a chemical plant, not by nature in a sugar cane or sugar beet field. However, Splenda claims that it is "Made from Sugar, So it Tastes Like Sugar."

"Splenda's marketing techniques are unfair to farmers and the entire agricultural industry," said Richard Weiss, chief operating officer of the National Grange in the press conference. "When farmers have to compete against chemistry pretending to be natural, it puts them at a disadvantage that affects their ability to provide quality products for consumers." Speaking for the "rest of agriculture," Weiss said that if left unchecked, Splenda's marketing claims would set a precedent affecting all of agriculture. "Next it will be made from corn to taste like corn or made from beef to taste like beef."

To further reiterate its concern, the National Grange filed a letter of complaint with the Honorable Deborah Platt Majoras, Chairman of the U.S. Federal Trade Commission. "The National Grange requests that the Federal Trade Commission open an investigation into Johnson & Johnson's marketing and advertising practices for the artificial sweetener Splenda (sucralose) in order to determine if any of their advertising claims are deceptive or misleading to consumers," the letter said.

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Rising Natural Gas Prices Concerns Farmers
With the natural gas supply and demand crisis growing, on February 4, the National Grange joined with the other 28 members of the Ag Energy Alliance in submitting testimony to the President's Council on Environmental Quality to stress the impact of high natural gas prices on farmers and rural Americans. The farm sector requires considerable amounts of natural gas as a primary feedstock for fertilizer, as well as an energy source for food processing, irrigation, crop drying and heating farm buildings and homes. The most intensive use of natural gas by farmers is in the production of nitrogen fertilizer, which is used on virtually every crop produced in this country and climbing natural gas prices have caused domestic nitrogen fertilizer producers to severely cut back production. According to the National Corn Growers Association, of the 16.5 million tons of nitrogen capacity that existed in the U.S. prior to 2000, almost 20 percent has been closed permanently. Another 25 percent is at risk of closing within the next two years.

"The American farmer's ability to be efficient and environmentally friendly faces a looming crisis because of current public policies that artificially create demand for certain energy resources, like natural gas, while restricting access to supply sources," the coalition groups stated in the testimony. To balance the limited supply of, and rising demand for, natural gas, they urged federal agencies to take action to ensure that the necessary liquefied natural gas (LNG) terminal facilities are sited, built and operated in a safe, cost effective and expeditious manner. "The agricultural community can produce an abundant, affordable and healthy food supply, but we need Congress and the Administration to produce the kind of policies that will enable access to the cost competitive resources needed to accomplish this," said the Ag groups.

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National Grange Opposes Level 3's Petition For Escaping Access Charges
On February 15, the National Grange joined the Alliance for Public Technology and the Communications Workers of America in a coalition letter asking the FCC (Federal Communications Commission) to deny Level 3 Communications' petition for forbearance from selected interstate access charge rules. In the telephone industry, access charges are the payments that one phone company makes to another phone company on behalf of their customers to use each other's facilities and lines in order to complete phone calls. Access charges generally are applied as compensation between phone companies when a customer of phone company A makes a call to a customer of phone company B. When the customer of Company B returns the call to the customer of company A, the financial compensation between the two phone companies flows the other way. Access charges per telephone call are generally very, very small but can add up to significant amounts of revenue over the billions of phone calls made every day. Access charges between phone companies is regulated by the Federal Communications Commission.

Level 3 Communications uses a new kind of phone technology called Voice over Internet Protocol (or VoIP). Even though the technology is different the service to the customer is exactly the same as traditional phone service. Customers using VoIP technology can make and receive calls from customers that have traditional phone service with out any difference in quality of service. However, because the VoIP technology is technically different than traditional telephone technology, Level 3 is arguing that they should be exempt from FCC regulations regarding paying or receiving reasonable compensation for access to other phone companies' networks and customers. The National Grange strongly disagrees.

"Access charges currently provide a substantial portion of the revenues of many local carriers, especially those serving rural communities. If long-distance carriers are exempted from paying access charges for the use of local networks simply because they utilize IP-based technologies instead of circuit switched networks, then local carriers may not have sufficient revenues to support their local facilities," the letter said. The shortage of access revenues for rural carriers will weaken their ability to create broadband networks and to provide affordable telephone service.

Furthermore, the National Grange believes the challenges to the current inter-carrier compensation regime should be resolved in a comprehensive fashion. Granting Level 3's petition many months in advance of resolving the broader inter-carrier issues will exacerbate the regulatory disparities that result from purely technological distinctions under the current structure, which is likely to accelerate the shift of traffic to VoIP based technologies and weaken traditional phone companies that serve rural areas.

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National Grange Responds to the President's Social Security Plan
In a letter sent to President George W. Bush to commend him on the policy goals he outlined in his 2005 State of the Union Address, the National Grange expressed its support for many of the basic principles the President laid out about the Social Security reform such as:

--"We must ensure that lower-income Americans get the help they need to have dignity and peace of mind in their retirement."
--"We must make sure any changes in the system are gradual, so that younger workers have years to prepare and plan for their future."
--"We must make Social Security permanently sound."
--"We must guarantee no change for those 55 years or older (born before 1950)."

The letter also articulated the Grange's policy positions regarding the detailed direction of the reform, which were endorsed by grassroots delegates to the 138th Annual Convention of the National Grange:

  1. The National Grange supports allowing individuals to invest a percentage of their payroll taxes in an individual account. Individual account options should be chosen by the government to avoid confusion. No more than 2.2% of the value of the entire Social Security Trust Fund should be allowed to be invested in the stock market at any one time.
  2. The National Grange endorses the present computation formula that is used to derive Social Security benefits. We urge that all future individual minimum benefits must be guaranteed no matter whether or not beneficiaries elected to participate in individual Social Security investment accounts.
  3. The National Grange requests that the public be provided with explicit and concise information well in advance concerning any major changes in the Social Security system.
  4. The National Grange supports removing all Social Security "Earning Limits" for individuals.
  5. The National Grange favors making all Social Security benefits free from federal personal income taxes.
  6. The National Grange supports reform to expedite the application for and processing of Social Security Disability benefits. We further urge that terminally ill persons be permitted to apply for Social Security Disability benefits upon diagnosis of their terminal illness and the application process be completed within four months of the initial application.

Rural Americans are more likely to rely on Social Security for their retirement income than any other groups of Americans and the way of its reform is always one of the Grange's priority concerns. The Grange is looking forward to working with Bush administration to strengthen our Social Security system in ways to meet the needs of rural Americans.

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2005 National Grange Legislative Policy Book Now Available
The 2005 Legislative Policy Book is now available from the National Grange office. The book contains over 1,000 National Grange official legislative policies, Blueprint for Rural America 2005 and an expanded grassroots education and training manual, Action 2005. Grange members interested in receiving a free copy of the 2005 Legislative Policy Book should send their name, address, email address and their Grange name and number to Chil-Sook Hwang at chwang@nationalgrange.org by fax at 202-347-1091 or at 1-888-4Grange ext. 109.

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2005 Legislative Fly-In Coming Up
The 2005 National Grange Legislative Fly-In will take place from March 14 through March 15, in Washington DC. Over the years, the Fly-In has provided Grangers with the unique opportunity to participate in the democratic process in our nation's capital. State Granges in North Carolina, Pennsylvania and Massachusetts are organizing special bus groups to attend 2005 Fly-In and it will result in the biggest Fly-In ever this year.

The 2005 Fly-In agenda includes informative workshops, congressional visits, and effective networking opportunities with Grange political activists from across the nation. Scheduled to coincide with the early stage of the 109th Congress, 2005 Fly In will help place issues of concern to Grange members across the country on the policy agenda of Congress and the executive agencies of government as they begin the new legislative season.

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National Grange Urges Congress to Reauthorize the "County Payments" Law
The National Grange urges Congress to reauthorize the Secure Rural Schools and Community Self-Determination Act of 2000 for an additional seven years. In 2000, Congress approved the Act (PL 106-393) to provide a six-year safety net for counties that historically rely on timber receipts as a source of revenue. With the decline of logging on national forests, and a corresponding drop in their revenue, rural counties had sought funding from the federal government. The PL 106-393 restored programs for students in rural public schools and prevented the closure of numerous isolated rural schools. It also restored rural forest county roads and created forest health improvement projects on National Forests.

Set to expire at the end of this year, the National Grange calls on Congress to continue the successful "county payments" law. Fortunately a group of both sides of Congress has already joined together to work for the reauthorization. The companion bills have early congressional support from regions across the nation. To see the text of legislation click: Secure Rural Schools and Community Self-Determination Reauthorization Act of 2005.

The legacy of PL 106-393 over the last few years is positive and substantial. The law should be extended to continue to benefit the forest counties, their schools, and continue to contribute to improving the health of National Forests.

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View from the Hill Editors: Leroy Watson & Chilsook Hwang |

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