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14 CapitalPress.com July 15, 2016 Farm Market Report Hay Market Reports Due to the holiday, some markets were not run or reported Compiled by USDA Market News Service • St. Joseph, Mo.-Portland Hay prices are dollars per ton or dollars per bale when sold to re- tail outlets. Basis is current delivery FOB barn or stack, or delivered customer as indicated. Grade guidelines used in this report have the following relation- ship to Relative Feed Value (RFV), Acid Detergent Fiber (ADF), TDN (Total Digestible Nutrients), or Crude Protein (CP) test num- bers: Grade RFV ADF TDN CP Supreme 185+ <27 55.9+ 22+ Premium 170-185 27-29 54.5-55.9 20-22 Good 150-170 29-32 52.5-54.5 18-20 Fair 130-150 32-35 50.5-52.5 16-18 Utility <130 36+ <50.5 <16 WASHINGTON-OREGON HAY (Columbia Basin) (USDA Market News) Moses Lake, Wash. July 8 This week FOB Last week Last year 24,620 10,500 4,900 Compared to July 1: All grades of export and domestic Alfalfa steady. Trade active this week with good demand even though some dairies have reported cutting hay consumption in their ration by two-thirds. Bluegrass straw is being sold for no value as long as the buyers bale it and haul it off the fields. Retail/Feedstore steady in a light test. Demand remains good. Tons Price Alfalfa Mid Square Premium 1500 $155 Good/Prem. 1200 $135 Fair/Good 2500 $125 1000 $80 Utility/Fair 4900 $115 Alfalfa Small Square Premium 500 $185 140 $220-250 Good/Prem. 30 $165 Fair/Good 500 $100 Orchard Grass Small Square Premium 100 $220-230 Timothy Grass Mid Square Premium 1000 $190 Good/Prem. 2000 $150 2000 $130 Oat Mid Square Good 250 $80 OREGON AREA HAY (USDA Market News) Portland, Ore. July 8 This week FOB Last week Last year 5,212 3,957 25,301 Compared to July 1: Prices trended generally steady compared to week ago prices. Many hay producers are selling their first cutting hay, and working on second cutting resulting in higher volumes of hay moving. Tons Price CROOK, DESCHUTES, JEFFERSON, WASCO COUNTIES Alfalfa Large Square Premium 250 $150 Fair 500 $115 Small Square Premium 150 $195-210 Alfalfa/Orchard Mix Small Premium 10 $245 Square Orchard Grass Small Square Mixed Grass Small Square Grass Mix-Five Way Small Square EASTERN OREGON Alfalfa Large Square Premium 50 Good/Prem. 95 Good 25 $235 $210-215 $200 Premium 15 $230 Supreme 25 24 280 $150 $300 $135 30 200 200 15 $165 $180 $160 $165 Premium 700 300 120 750 $160 $150 $185 $140 Premium Fair Good/Prem. Premium Premium 585 90 500 100 75 $175 $100 $160 $280 $280 Premium Alfalfa/Orchard Mix Small Square Premium Timothy Grass Large Square Premium Good Small Square Premium HARNEY COUNTY Alfalfa Large Square Supreme KLAMATH BASIN Alfalfa Large Square Small Square Orchard Grass Small Square Timothy Grass Small Square LAKE COUNTY Alfalfa Large Square Supreme 10 $225 24 $225 Good 34 $170 Small Square Good/Prem. 30 $200 Good 25 $180 CALIFORNIA HAY (USDA Market News) Moses Lake, Wash. July 8 This week FOB Last week Last year 14,075 13,460 16,953 Compared to July 1: All classes traded steady. Demand mod- erate. Exporters remain active at current market levels. Dairymen are buying supplies needed in the short term and being very selec- tive. Tons Price REGION 1: NORTHERN INTERMOUNTAIN Includes the counties of Siskiyou, Modoc, Shasta, Lassen, and Plumas. Alfalfa Supreme 75 $310 Prem/Sup. 25 $190 Good/Prem. 1300 $150 450 $170 Good 100 $105 Alfalfa/Orchard Mix Premium 100 $170 Alfalfa/Grass Mix Premium 200 $100 Wheat Hay Good 250 $80 REGION 2: SACRAMENTO VALLEY Includes the counties of Tehama, Glenn, Butte, Colusa, Sutter, Yuba, Sierra, Nevada, Placer, Yolo, El Dorado, Solano, Sacramento. Alfalfa Premium 150 $160 Fair/Good 1000 $100 Fair 1000 $90 Utility/Fair 250 $90-95 Forage Mix-Two Way Good 200 $130 Forage Mix-Three Way Fair 75 $65 REGION 3: NORTHERN SAN JOAQUIN VALLEY Includes the counties of San Joaquin, Calaveras, Stanislaus, Tu- olumne, Mono, Merced and Mariposa. Alfalfa Supreme 175 $190 Premium 400 170 75 $160 225 $98 Good/Prem. 225 $160 Good 825 $130 1000 $130 Fair 1500 $100 Oat Hay Good 50 $65 Forage Mix-Two Way Good 200 $160 Wheat Straw Good 300 $60-70 REGION 4: CENTRAL SAN JOAQUIN VALLEY Includes the counties of Madera, Fresno, Kings, Tulare, and Inyo. Alfalfa Premium 300 $170 50 $200 REGION 5: SOUTHERN CALIFORNIA Includes the counties of Kern, Northeast Los Angeles, and West- ern San Bernardino. Alfalfa Good/Prem. 475 $180 Good 100 $160 REGION 6: SOUTHEAST CALIFORNIA Includes the counties of Eastern San Bernardino, Riverside, and Imperial. Alfalfa Premium 100 $140 750 $145 Good/Prem. 100 $135 Fair/Good 400 $135 Fair 600 $100 Utility/Fair 750 $80 Sudan Good 300 $135 IDAHO HAY (USDA Market News) Moses Lake, Wash. July 8 This week FOB Last week Last year 20,500 5,500 5,760 Compared to July 1: All grades of Alfalfa steady for higher testing dairy hay. Trade active this week with good demand. Most first cut- ting Supreme testing Alfalfa has pretty much been spoken for, trade sources report. California hay buyers are looking for high potassium testing Alfalfa. Retail/feed store/horse not tested this week. Tons Price Alfalfa Mid Square Supreme 6500 $135-155 Prem/Sup. 3500 $140 Premium 900 $120 Good/Prem. 1000 $170 Good 900 $110-125 Timothy Grass Mid Square Good/Prem. 5200 $140-150 Fair/Good 1000 $105 Mixed Grass Mid Square Good 1500 $80 Grain Market Reports Compiled by USDA Market News Service • Portland Grains are stated in dollars per bushel or hundredweight (cwt.) except feed grains traded in dollars per ton. National grain report bids are for rail delivery unless truck indicated. CALIFORNIA GRAINS (USDA Market News) Portland July 7 Prices in dollars per cwt., bulk Inc.= including; Nom.= nominal; Ltd.= limited; Ind.= indicated; NYE=Not fully estimated. GRAIN DELIVERED Mode Destination Price per cwt. BARLEY – U.S. No. 2 (46-lbs. per bushel) Kern County NA FOB Rail Los Angeles NA Stockton-Modesto-Oakdale-Turlock NA Kings-Tulare-Fresno Counties $8.65 Truck Petaluma-Santa Rosa NA CORN-U.S. No. 2 Yellow FOB Turlock-Tulare $8.07 Kings-Tulare-Fresno $6.95 Rail Single Car Units via BNSF Chino Valley-Los Angeles $8.33 Truck Petaluma-Santa Rosa NA Stockton-Modesto-Oakdale-Turlock $8.37 Kings-Tulare-Fresno Counties $8.37 Glenn County NA SORGHUM-U.S. No. 2 Yellow Rail Los Angeles-Chino Valley via BNSF Single $8.14 Truck Modesto-Oakdale-Turlock NA OATS-U.S. No. 1 White Truck Petaluma NA Rail Petaluma NA WHEAT-U.S. No. 2 or better-Hard Red Winter (Domestic Values for Flour Milling) Los Angeles 12 percent Protein NA Truck/Rail Los Angeles 11-12 percent Protein Los Angeles 12 percent Protein NA FOB Tulare-Kern-Merced NA WHEAT-U.S. Durum Wheat Truck Imperial County NA Kings-Tulare-Fresno Counties NA WHEAT-Any Class for Feed FOB Tulare NA Kings-Tulare-Fresno Counties $8-8.05 Truck/Rail Los Angeles-Chino Valley NA Truck Petaluma-Santa Rosa NA Fresno NA Prices paid to California farmers, seven-day reporting period end- ing July 7: No new sales confirmed. PORTLAND GRAIN (USDA Market News) Portland July 7 PACIFIC NORTHWEST MARKET SUMMARY Cash wheat bids for July delivery ended the reporting week on Thursday, July 7, were lower compared to June 30 noon bids for July delivery. September wheat futures ended the reporting week on Thursday, July 7, lower as follows compared to June 30 closes: Chicago wheat futures were 20 cents lower at $4.2550, Kansas City wheat futures were 10.25 cents lower at $4.1225 and Minneapolis wheat futures trended 12.25 cents lower at $4.9575. Chicago September corn fu- tures trended 23.75 cents lower at $3.4175 and August soybean futures closed 123.75 cents lower at $10.5050. Bids for U.S. 1 Soft White Wheat delivered to Portland in unit trains or barges during July for ordinary protein trended 15.50 to 17 cents per bushel lower compared to week ago prices for the same delivery period at $4.75-5.03. Some exporters were not issuing bids for nearby delivery. White club wheat premiums were zero cents per bushel this week compared to no white club wheat premiums for last week. One year ago bids for U.S. 1 Soft White Wheat any protein for July delivery by unit trains and barges to Portland were not available and bids for White Club Wheat were also not available. Forward month bids for soft white wheat ordinary protein were as follows: August New Crop $4.75-5.03 and September $4.80-5.08. One year ago, forward month bids for soft white wheat for any protein were as follows: August New Crop and September $6.4925-6.8525, October and November $6.4875-6.8275. Bids for U.S. 1 Soft White Wheat guaranteed maximum 10.5 per- cent protein during July trended 15.50 to 19.50 cents per bushel lower than week ago prices for the same delivery period at $4.85- 5.0050. Some exporters were not issuing bids for nearby delivery. White club wheat premiums for guaranteed maximum 10.5 percent protein soft white wheat this week were zero to ten cents compared to no white club wheat premiums last week. One year ago bids for U.S. 1 Soft White Wheat any protein for July delivery by unit trains and barges to Portland were $7.0025-7.36 and bids for White Club Wheat were also $7.0025-7.36. Forward month bids for soft white wheat guaranteed 10.5 percent proteins were as follows: August New Crop $5.1250-5.20 and September $5.0550-5.25. One year ago, forward month bids for soft white wheat for any protein were as follows: August New Crop and September $7.1025-7.4525, October and November $7.0775-7.4775. Bids for 11.5 percent protein U.S. 1 Hard Red Winter Wheat for July delivery were 8.25 to 15.25 cents per bushel lower compared to June 30 noon bids for June delivery. Some exporters were not issuing bids for nearby delivery. Bids were as follows: July $4.6625- 4.8225, August New Crop $4.7225-4.8725, September $4.8225- 4.9225, and October $4.9650-5.0650. Bids for non-guaranteed 14.0 percent protein U.S. 1 Dark North- ern Spring Wheat for Portland delivery during July were 9.50 to 17.50 cents per bushel lower than June 30 noon bids for the same delivery period. Some exporters were not issuing bids for nearby de- livery. Bids for non-guaranteed 14 percent protein were as follows: July $5.7075-5.9075, August New Crop $5.7075-5.8075, Septem- ber $5.7075-5.8575 and October $6.0150-6.1150. COARSE FEEDING GRAINS Bids for U.S. 2 Yellow Corn delivered full coast Pacific North- west - BN shuttle trains for July delivery were 15.75 to 17.75 cents lower from $4.4175-4.4575 per bushel. Forward month corn bids were as follows: August and September $4.4375-4.4475, October, November and December $4.4050-4.4250. Bids for U.S. 1 Yellow Soybeans delivered full coast Pacific Northwest - BN shuttle trains for July delivery were 113.75 to 116.75 cents lower from $11.4250- 11.5050 per bushel. Forward month soybean bids were as follows: August $11.5050, September $11.7050, October $11.4675-11.4775, November $11.4175-11.4375 and December $11.3975. Bids for U.S. 2 Heavy White Oats for June delivery trended steady at $3.0475 per bushel. PACIFIC NORTHWEST EXPORT NEWS There were eight grain vessels in Columbia River ports on Thurs- day, July 7, with three docked compared to twelve last week with four docked. There were no new confirmed export sales this week from the Commodity Credit Corporation (CCC) of the USDA. Potato Market Reports Compiled by North American Potato Market News and USDA Agricultural Market Service Prices are weekly averages of daily prices. All prices are in dollars per hundredweight (cwt.). FWA is a weighted average of shipping point prices or common packs in each area. Weights differ by area. GRI is the Grower Returns Index for each individual area. FRESH RUSSET POTATO MARKET REPORT (North American Potato Market News) (USDA Market News) July 9 Market commentary: Russet carton prices continued to trend downward, due to an unbalanced size profile, as the storage season winds down. SHIPPING AREA FWA Chg GRI Chg 70 ct Chg 10 lb. Film Chg IDAHO BURBANKS $11.98 -$0.43 $5.01 -$0.26 $18 -$2 $8 $0.50 COLUMBIA BASIN $14.57 $0 $6.64 $0 $22 $0 $8.50 $0 Sheep/Wool Market Reports Compiled by USDA Market News Service • Greeley, Colo.-San Angelo, Texas Wool prices in cents per pound and foreign currency per kilogram, sheep prices in dollars per hundredweight (cwt.) except some replacement animals on per head basis as indicated. NATIONAL WOOL REVIEW (USDA Market News) Greeley, Colo. July 8 Domestic wool trading on a clean basis has been at a standstill this week. No confirmed trades were reported. The vast majority of the wool trade has been completed and the ware- houses are starting to go to a cleanup mode. Some small offerings will be taking place as the season winds down into the offseason. Domestic wool trading on a greasy basis was at a stand- still this week. There were no confirmed trades reported. Domestic wool tags No. 1 $.60-.70 No. 2 $.50-.60 No. 3 $.40-.50 California Egg Reports Compiled by USDA Market News Service • Des Moines Shell egg marketer’s benchmark price for negotiated egg sales of USDA Grade AA and Grade AA in cartons, cents per dozen. This price does not reflect discounts or other contract terms. DAILY CALIFORNIA SHELL EGGS (USDA Market News) Des Moines, Iowa July 8 Benchmark prices are steady. Asking prices for next week are unchanged on all sizes. Trade sentiment is usually lower. Offerings are light for Jumbo, light to instances moderate for Extra Large, moderate for Large and heavy for Medium. Retail demand is light to moderate with institutional sales mostly moderate. Warehouse buyers are working from current floor stocks and watching current market conditions. Supplies are light for Jumbo and moderate on the balance of sizes. Market activity is slow. Small benchmark price 80 cents. Size Range Size Range Jumbo 161 Extra large 142 Large 130 Medium 100 SOUTHERN CALIFORNIA Prices to retailers, sales to volume buyers, USDA Grade AA and Grade AA, white eggs in cartons, delivered store door. Size Range Size Range Jumbo 113-124 Extra large 68-79 Large 61-70 Medium 38-47 Livestock Auctions Cattle prices in dollars per hundredweight (cwt.) except some replacement animals per pair or head as indicated. Washington TOPPENISH (Toppenish Livestock Auction) (USDA Market News) Moses Lake, Wash. July 8 This week Last week Last year 1,100 1,000 1,060 Compared to June 24 at same market: Not enough stocker or feeder cattle this week for accurate market trends; however, a higher under- tone was noted. Trade active with good demand. Slaughter cows and bulls steady to $2 higher. Trade active with good demand. Slaughter cows 72 percent, slaughter bulls 10 percent, and feed- ers 18 percent of the supply. The feeder supply in- cluded 72 percent steers and 28 percent heifers. Near 65 percent of the run weighed over 600 lbs. Feeder Steers: Medium and Large 1-2: 400- 500 lbs. $155; 600-700 lbs. $132-143.50; 700- 800 lbs. $132.50-135; 800-900 lbs. $120.50. Large 1: 1000-1100 lbs. $110. Small and Medi- um 1-2: 600-700 lbs. $129. Small and Medium 2-3: 500-600 lbs. $131, Full; 500-600 lbs. $150, Yearlings. Feeder Holstein Steers: Large 2-3: 300-400 lbs. $115; 400-500 lbs. $101; 500-600 lbs. $95; 1200-1300 lbs. $92.50. Feeder Heifers: Medium and Large 1-2: 500- 600 lbs. $138-139; 600-700 lbs. $140; 700-800 lbs. $120-129.50. Medium and Large 2-3: 400- 500 lbs. $137; 500-600 lbs. $116. Large 2-3: 700-800 lbs. $81. Slaughter Cows: Boning 80-85 percent lean 1400-2200 lbs. $73-78; Lean 85-90 percent lean 1200-1800 lbs. $74-79; Lean Light 90 percent lean 900-1300 lbs. $64-69. Slaughter Bulls, Yield Grade 1-2: 1300-2200 lbs. $89-95. California SHASTA (Shasta Livestock Auction) Cottonwood, Calif. July 8 Current week Last week 566 1,361 Compared to June 24: Slaughter cows steady, bulls higher. Yearling market spotty. Off lots and singles $25-50 below top. Slaughter cows: High yielding $70-73; $74-79 high dress; Boning $62-69; Cutters $40-60. Bulls 1 and 2: $70-98. Feeder steers: 450-500 lbs. $157; 500-550 lbs. $135-145.50; 600-650 lbs. $145; 650-700 lbs. $130-141; 700-750 lbs. $125-136; 750-800 lbs. $133-134.50; 800-900 lbs. $124- 134; 900-1,000 lbs. $115-120. Feeder heifers: 550-600 lbs. $124-137.50; 600-650 lbs. $126.50-127; 650-700 lbs. $120- 129; 700-750 lbs. $119-130; 750-800 lbs. $115- 125.25; 800-900 lbs. $109-114. Pairs: Mixed ages- $1400-2100. Calvy cows: Too few to test the market. Cattle Market Reports Compiled by USDA Market News Service • Oklahoma City-Des Moines-St. Joseph, Mo.-Moses Lake, Wash. Cattle prices in dollars per hundredweight (cwt.) except some replacement animals per pair or head as indicated. NATIONAL SLAUGHTER CATTLE (USDA Market News) Oklahoma City, Okla. July 8 Slaughter cattle sold on a live basis in all major feeding regions traded mostly steady. Boxed Beef prices July 8 averaged $202.82 up $1.70 from last July 1. The Choice/Select spread is $13.07. Slaughter cattle on a national basis for ne- gotiated cash trades through July 8 at noon totaled about 20,799 head. The previous week’s total head count was 124,682 head. Midwest Direct Markets: Live Basis: Steers and Heifers: $120. Dressed Basis: Steers and Heifers $191. South Plains Direct Markets: Live Basis: Steers and Heifers $120. Slaughter Cows and Bulls (Average Yielding Pric- es): Slaughter cows and bulls not established due to the holiday shortened week. Cutter Cow Carcass Cut-Out Value July 8 at the close on July 8 was $171.05 down $1.10 from July 1. NORTHWEST DIRECT CATTLE (USDA Market News) Moses Lake, Wash. July 8 This week Last week Last year 4,150 400 4,450 Compared to July 1: Feeder cattle $2-3 higher. Trade moderate this week. Demand good. The feeder supply included 64 percent steers and 36 percent heifers. Near 100 percent of the supply weighed over 600 lbs. Prices are FOB weighing point with a 1-4 percent shrink or equivalent and with a 5-12 cent slide on calves and a 3-8 cent slide on yearlings. Current sales are up to 14 days delivery. De- livered prices include freight, commissions and other expenses. Steers: Medium and Large 1-2: Current FOB Price: 850-900 lbs. $133-137 Washington-Ida- ho-Oregon. Current Delivered Price: 850-900 lbs. $136-141 Idaho. Large 1: 900-950 lbs. $130- 137.50 Idaho. Future Delivery Delivered Price: 900 lbs. $138 for July-August Idaho. Heifers: Medium and Large 1-2: Current FOB Price: 800-850 lbs. $126-130 Washington-Ida- ho-Oregon. Current Delivered Price: 850-900 lbs. $126-127 Idaho. Future Delivery Delivered Price: 800 lbs. $136 for July-August Idaho. NATIONAL FEEDER AND STOCKER CATTLE (Federal-State Market News) St. Joseph, Mo. July 8 This week Last week Last year 113,400 270,000 205,900 An overwhelming majority of cattle auctions took the time to breathe from the roller coaster ride that has wreaked havoc on the agriculture complexes the last few weeks. Three sales in Green City, Mo., Valentine, Neb., and Mitchell, S.D., accounted for over 50 percent of the auction receipts this week. The auctions that did have a sale this week were greeted with handsome prices as the late last week fed cattle traded $6 higher at mostly $122 live and mostly $7 to $10 higher dressed at $195-200. Buyers were in the seats for those specials and on offer were mostly yearling cattle coming off grass. On July 6 in Green City, a load of 770 lb. thin steers sold for $163.50 and in Valentine, a load of 919 lb. steers brought $149.35. The fed cattle market has not been defined yet this week after the “ooohs and aaahs” heard around the country over the extended weekend. Packers decided last week their margins were good enough to pique their interest in acquiring inventory out front, to the tune of 38,618 head for 15-30 day delivery — the third largest volume for fed steers and heifers since that category was initially started in March of 2010. Keeping feedlots current through the dog days of summer is what packers and producers should want this time of year in order to help maintain some stability for fed cattle prices down the road. The cut-out value held together this week as good movement in of product was reported over the July 4th holiday and packer margins remain healthy in spite of the higher prices for fed cattle. The corn market has been under pressure the last three weeks and new-crop December corn has retreated from a recent high on June 17 of $4.48 3/4 to close today at around $3.57; 80-plus cents lower. One factor that has helped put the pressure on the market is corn crop conditions are rated at 75 percent good to excellent. Larger than expected planted acres released last week at 94.1 million acres was an additional element, which was 1.3 million acres above in- dustry expectations. The Corn Belt has received ample moisture the last three weeks and the corn plant is going through its normal maturation process with the type of weather it desires — hot and humid. Next week’s WASDE report will give us an in- dication of the condition of the U.S. corn crop if the projected corn production for 2016-17 will be above or below their June estimate of 14.430 bb; a record estimate. Auction volume this week included 78 percent weighing over 600 lbs and 34 percent heifers. AUCTIONS This week Last week Last year 25,400 116,900 98,000 WASHINGTON 1,900. 81 pct over 600 lbs. 39 pct heifers. Steers: Medium and Large 1-2 500- 550 lbs. $151.30; 550-600 lbs. $152.19; 650-700 lbs. $149.46; 700-750 lbs. $137.37; 750-800 lbs. $138.60; 800-850 lbs. $136.81; 850-900 lbs. $136.67. Heifers: Medium and Large 1-2 400- 450 lbs. $152.18; 450-500 lbs. $150.73; 600-650 lbs. $130.70; 650-700 lbs. $130.54; 700-750 lbs. $130.28; 750-800 lbs. $129.88; 800-850 lbs. $128.80. DIRECT This week Last week Last year 56,500 51,700 48,800 SOUTHWEST (Arizona-California-Nevada) 8,300. No cattle over 600 lbs. No heifers. Hol- steins: Large 3 300 lbs. $125 current Del; 325 lbs. $120 current Del; 300 lbs. $128-132 October Del; 300 lbs. $132 November Del 325 lbs. $126- 128.70 November Del. NORTHWEST (Washington-Oregon-Idaho) 4,200. 100 pct over 600 lbs. 36 pct heifers. Steers: Medium and Large 1-2 Current FOB Price 850-900 lbs. $133-137 Washington-Idaho-Ore- gon. Current Delivered Price 850-900 lbs. $136- 141 Idaho. Large 1 900-950 lbs. $130-137.50 Idaho. Future Delivery Delivered Price 900 lbs. $138 for July-August Idaho. Heifers: Medium and Large 1-2 Current FOB Price 800-850 lbs. $126-130 Washington-Idaho-Oregon. Current Delivered Price 850-900 lbs. $126-127 Idaho. California governor looks to extend climate-change efforts By ELLEN KNICKMEYER and JULIET WILLIAMS Associated Press SACRAMENTO — Cal- ifornia Gov. Jerry Brown has launched a campaign to extend some of the most ambitious cli- mate-change programs in the country and ensure his environ- mental legacy when he leaves office in two years. The centerpiece of the push is a cap-and-trade program that aims to reduce the use of fossil fuels by forcing manufacturers and other companies to meet tougher emissions limits or pay up to exceed them. The pro- gram has been one of the most- watched efforts in the world aimed at the climate-changing fuels. The four-year-old program, however, is only authorized to operate until 2020 and faces a litany of challenges, including a lawsuit questioning its legality, poor sales of credits, and luke- warm support among Demo- cratic legislators to extend it. On Tuesday, the California Air Resources Board released a proposed blueprint for continu- ing the cap-and-trade program until 2030, with a vote expected next year. Supporters credit the strat- egy — born under previous Gov. Arnold Schwarzenegger, a Republican, and stemming from other climate change pro- grams initiated under Brown — with helping to cut California’s overall output of emissions by 1.5 percent in its first two years, despite the massive energy de- mands of the state’s thriving economy. With Brown set to leave office in 2018, a state appeals court is considering a challenge from the California Chamber of Commerce contending the pollution-credit program is an illegal tax, not a fee. Environmental groups say the lawsuit and overall uncer- tainty about the survival of the program are undermining the market for pollution credits. A May auction saw compa- nies buy only one-tenth of the available credits, leaving the state billions of dollars short in projected revenue from the sales. Meanwhile, groups repre- senting oil interests confirmed last week that they are in direct talks with the Brown adminis- tration over cap-and-trade. California oil companies have long sought to alter or repeal the state’s low-carbon fuel standard. By 2020, those companies would be required to reduce the carbon content of gasoline and other fuels by 10 percent, a significant jump from the current 2 percent. Any deal-making on cli- mate change would reflect a pragmatic approach to the oil industry by Brown, who took office encouraging immediate boosts in oil and gas drilling to spur California’s economy, even as he promoted incentives that would reduce long-term re- liance on fossil fuels. “What you’re seeing now is an all-hands-on-deck effort to formulate the most respon- sible way forward.” said Derek Walker, an associate vice presi- dent of the Environmental De- fense Fund. “They’re talking to the oil industry, talking to envi- ronmental groups, to organized labor — they’re talking to ev- erybody.” Brown has leveraged his po- sition as governor to help draw attention to the battle against climate change. He has set non-binding mandates for in- creased use of solar, wind and other renewable energy sourc- es in California in the decades to come while signing accords and global support statements aimed at easing climate change. At home, though, Brown has encountered trouble from moderate Democrats in the state Assembly who last year blocked his plan to slash state- wide petroleum use in half within 15 years. The same lawmakers re- fused to endorse legislation by Sen. Fran Pavley, D-Agoura Hills, seeking to dramatically cut greenhouse gas emissions through 2050. Pavley was forced to scale back her propos- al that now would extend only to 2030. She has since compro- mised even further, agreeing last month to merge parts of her plan with legislation mandating that revenues from such pro- grams be spent in low-income communities affected by pollu- tion. Winning legislative sup- port could be key for Brown in ensuring the survival of the cap-and-trade program, said Jessica Levinson, a political science professor at Loyola Law School. “His ability to solidify cap and trade is a big part of being able to say to other governors, to other countries, ‘We’re do- ing something big and spe- cific and real and it works,”’ Levinson said.