Do you ever get tired of people always saying these are challenging times? Yes, these are challenging times. We don’t need to be reminded. As an industry, renderers have been challenged since the beginning in one form or another.
Challenges are usually seen as obstacles to overcome. Positive and optimistic people call certain challenges opportunities. However you want to look at it, we are dealing with issues every day that represent a challenge to either overcome an obstacle or to seize an opportunity.
The National Renderers Association (NRA) has been dealing with important issues affecting renderers for the past 69 years. Some issues never go away, they just recycle themselves every so many years. They are kind of like a soap opera where you just pick up where you left off the last time you dealt with it. New issues make you start from scratch.
Congress returned from its annual August recess to a very busy schedule. Members hoped to go home in early October to campaign for their re-elections. We should expect a lame duck session after the elections.
The primary responsibility of Congress for the remainder of this year will be to pass the spending bills for fiscal year 2003. As of this writing in early September, not a single one of the 13 appropriations bills has been passed by Congress. If Congress doesn’t get the spending bills completed before going home, it will adopt a continuing resolution to keep the government running.
In addition, there is pressure to complete the Homeland Security legislation and an energy bill. NRA has watched the development of the Homeland Security legislation with interest as to what will happen to the Animal and Plant Health Inspection Services (APHIS) at the U.S. Department of Agriculture (USDA). The president’s original proposal was to move it lock, stock, and barrel to the new department of Homeland Security. This caused a great deal of anxiety among the groups that work with APHIS, including the NRA. It appears now that only the port inspectors will be transferred out of APHIS. This is generally being accepted by all sides.
Energy Watch
The energy bill (H.R. 4) is still a priority for NRA at this time. The conferees from the Senate and House have not had a meaningful meeting yet to work out the differences between their respective versions of legislation. The staffs have worked to identify and resolve the non-controversial issues.
NRA has worked hard to tell our story. The rendering industry is in a position to be a significant contributor to the development and production of biodiesel. However, any legislation providing tax incentives for biodiesel must be fair and equitable to producers regardless of feedstock.
The Senate version of H.R. 4 provides up to one dollar per gallon excise tax rebate for biodiesel produced from virgin soy oil. There is no such provision for biodiesel from non-virgin oil sources. There is a provision for a blended tax credit for all producers of biodiesel; however, the credit provides one dollar per gallon for virgin soy oil feedstocks and 50¢ per gallon for non-virgin oil feedstocks.
NRA members and staff have visited numerous congressional offices telling our story. We too would like to see an incentive program for biodiesel, but we can’t support legislation that essentially excludes rendered products. Supporters of this legislation are no doubt upset with our efforts. I am somewhat bewildered that some people are surprised that we are waging such a battle. Legislation is being considered that clearly benefits only one segment of biodiesel production at the expense of renderers. NRA would not be representing its members’ interests if we weren’t fighting for fairness, equity, and inclusion in this legislation. When we succeed, this challenge will truly be an opportunity.
The outcome of any energy legislation being completed this year is in question. There are many contentious topics yet to be resolved and time is running out.
TPA a Plus, ANPRs Looming
On a positive note, Congress did pass the trade promotion authority (TPA) bill before the August break. This is something that the NRA and numerous agricultural organizations supported and worked very hard to see become law. TPA will give the administration the necessary tools to enter into trade negotiations with other countries. As the rendering industry looks more and more to exports, it will be very important for our negotiators to seek more open markets and to reduce or remove trade barriers for U.S. products into other countries.
We are still anticipating the Food and Drug Administration (FDA)/Center for Veterinary Medicine (CVM) and the USDA to issue their respective Advanced Notice of Proposed Rulemaking (ANPR). The FDA/CVM ANPR will address the question of whether the current feed rule needs to be changed. The USDA ANPR is expected to address issues relating to the handling of dead stock. The wheels of bureaucracy move very slowly – both ANPRs were expected this past spring. We know that drafts of the proposals have been completed and are supposedly being reviewed internally by the agencies. NRA representatives have had several meetings with FDA and USDA this year in anticipation of the release of the ANPRs. Stay tuned.
NRA members recognize the importance to be active in Washington. Two successful Congressional Fly-Ins have significantly raised our visibility on the Hill and within the administration. We must be vigilant at all times. It is not always what government will do for you, but what government will do to you.
From the Association - October 2002 Render