So far, there has not been a final rule. The FDA publicly acknowledged that comments to the proposed rule submitted by the NRA and several individual renderers caused them to reevaluate their numbers and appraisal of their proposal. The U.S. Department of Agriculture scaled back its accelerated surveillance program as it determined there was an extremely low risk of any incidence of bovine spongiform encephalopathy (BSE) in the United States. It is unknown what the FDA will eventually do, but time has been on our side. The longer time goes on, there is hope that government officials will see less of a need to change a rule that is already doing the job.
The NRA had a successful Washington fly-in last year with 25 renderers visiting over 100 congressional offices telling the industry’s positive story. These visits over the past five years have accumulated hundreds of important contacts not only in Congress, but all over Washington. I am proud of what the association has accomplished with the fly-ins. However, I am also reminded just about every day that there is a new and growing audience that must continue to be reached to make sure the industry’s story gets told and heard over and over.
It was learned late last summer that renderers that produced and used or sold its own fats and oils for fuel were eligible for what is called an alternative fuel mixture credit. The term “credit” might be a misnomer as it was discovered it was actually a payment to participating businesses. To date, several renderers have completed the necessary paperwork for getting registered with the Internal Revenue Service, have submitted the proper claims, and are now receiving payments. This program is set to expire in 2009, but I was told this past summer by a staff member of a key congressional committee that Congress would look kindly on any alternative fuel that would replace imported fossil fuel and it would be considered for incentives. This program justly recognizes the contribution renderers are making in utilizing its products as alternative fuels.
The year ended with a successful annual convention and good prices for rendered products.
This year, the political winds are changing in the nation’s capitol. For the first time since 1994 the Democrats are the majority party in the House of Representatives. The Senate has gone Democrat as well.
The House Democrats have a laundry list of mostly domestic issues it wants to legislate in the first 100 hours. They will have some success with some of their wish list. However, time will tell whether the Senate will go along and, finally, if President George W. Bush will sign the legislation passed by Congress.
With a new Congress and a new majority party, it will take a while for things to come together. The various committees are being realigned with new leadership, new members, and staff changes that will take some time to get completely organized. Renderers and the NRA will be working to make new acquaintances and maintain old contacts on the Hill. We’ve enjoyed good working relationships with congressional members and staff from both parties.
Many of the industry’s issues are not decided on a partisan basis. The Washington fly-ins over the past five years have positioned us well with many members of Congress, committees, and staffs. However, with every new Congress and its new members, the work never stops. The fly-in this coming June will be extremely important for the industry and more renderers are encouraged to come to Washington to participate in this event.
The timing for the fly-in should be just about right. The House and Senate Agriculture Committees will be working on a new farm bill. It is anticipated that there will be an energy title in the farm bill and already numerous interests are working to get on the alternative energy bandwagon. We must make sure the rendering industry is at the table and included in any deliberations dealing with bioenergy.
But all of the action on alternative fuels will not just be within the agriculture committees. The Senate Finance Committee and the House Ways and Means Committee are where the major decisions are made when it comes to incentive payments, taxes, and credits. These two committees will be carrying a heavy load dealing with any energy related programs.
The farm bill will offer an opportunity to hopefully address other renderer interests such as disposal issues, continuation of the Foreign Market Development and Market Access Programs, and animal identification, to name a few.
We continue to try to regain markets lost since December 2003 when a single case of BSE was found in the United States. The inability to recoup these lost markets is extremely frustrating as the U.S. government deals with its counterparts in foreign countries. It seems that as one issue is resolved, two more pop up. Unfortunately, BSE has become a very convenient trade barrier for many U.S. trading partners.
This coming year will be another busy one for the association as we represent the rendering industry in many different arenas.
Stay tuned.
From the Association - February 2007 Render