Issues Affecting the Fats and Oils Industry

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Issues Affecting the Fats and Oils Industry

• By Robert Collette At the
• American Fats and Oils Association Meeting
• October 16, 2008
• New York, NY

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• Update on Tran Fat

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California Bans Trans

• New law bans artificial trans fat in oils,
  shortening and margarine from use in food service
  facilities (i.e.
• Effective 12-31-09 but dough-making and bakery
  applications extended to 12-31-10
• Exempts school cafeterias and pre-packaged food
  sold in original package

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Massachusetts and Other States Attempting
State-wide Ban

• Massachusetts House approved statewide artificial
  trans fat ban in restaurants June, 2008
• Measure blocked in Senate. Push expected to
  continue in next legislative session

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Other Recent State Municipal Activity

• Albany County, NY passed a no trans fat
  resolution for restaurants August, 2008.
  Effective 1-1-09 except dough and bakery 6-30-09
• Baltimore, MD passed a trans fat ban for
  restaurants March, 2008
  Ban effective 9-20-09

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Other Recent State Municipal Activity

• Stamford, CT trans fat banned for food service
  facilities April, 2008. Effective 7-1-08
• Boston, MA artificial trans fat banned in
  restaurants, vendors and school cafeterias
  March, 2008. Effective 9-13-08
• except baked goods 3-1-09

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FDA ANPRM Addresses Nutrition Values and
Nutrition Facts Panel(72 FR 62149 November 2,
2007)

• Goal Update daily values (DV) and mandatory
  nutrients on food labels
• Questions include
• Should FDA create DV for trans fat?
• Should FDA adjust (lower) saturated fat DV?
• Calories from fat should it remain on label?
• Calories from saturated fat should it remain
  voluntary?

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FDAs Recent Trans Fat Consumer Research

• Evaluating consumer understanding of food
  products having trans free and reduced
  nutrient content claims
• Evaluating consumer understanding of various
  footnote options (e.g., Intake of trans fat
  should be kept low)
• Evaluating effectiveness of various DV formats
  (trans fat DV combined with saturated fat, no
  trans fat DV)
• Data is collected and analyzed

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CSPI Activity

• Commissioned a consumer survey in New York to
  support lobby effort on a statewide ban
• Results 73 (n800) were concerned about
  artificial trans fat in restaurant food 71
  support statewide ban and 84 favored menu
  disclosure

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AHA Face the Fats Campaign

• Introduced the Better Fat Sisters, Mon and
  Poly. Expands educational effort to better
  understand fats in the diet and health context.

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Industry Reformulation Announcements

• October, 2008, Chic-Fil-A all
  items except cheese cake
• October, 2008, Burger King cooking trans
  free all items trans free by Nov.1
• May, 2008, McDonalds cooking trans free.
  Trans free in pies cookies by end of 2008
• March, 2008, Friendly Ice Cream restaurants
  announced trans fat phase out by Fall, 2008

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• Environmental and Security Regulations Update

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EPAs Spill Prevention Control and
Counter-measure (SPCC) Rule Update

• Applies to facilities with 42,000 gal of oil
  below or 1,320 gal above ground
• Edible animal fats vegetable oils (AFVO)
  covered
• July 1, 2009 new deadline for facilities to amend
  and implement SPCC plans

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EPA Spill Prevention Control and
CountermeasuresIntegrity Test

• October 2007, EPA proposed amendments to SPCC
• Proposed to differentiate integrity testing
  requirements for AFVO based storage tank design
• Compliant with FDA Good Manufacturing Practice
  Rules
• Elevated (off the ground)
• Made from austenitic stainless steel
• No external insulation, and Shop-built.
• AFVO refiners generally not eligible but some
  AFVO users will avoid integrity testing

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EPA Spill Prevention Control and
CountermeasuresIndustry Letter

• Industry requests interim EPA SPCC exemption for
  mixtures and solids if
• mixtures contain 33 or less oil/fat,
• mixtures contain CWA hazardous substances, if the
  product is soluble in water and traditional oil
  cleanup equipment cannot be used, and
• substances are solid at ambient temperatures

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DHS Chemical Security Regulation

• Dept. of Homeland Security Appropriations Act of
  2007
• Bill designed to thwart terrorist sabotage of
  chemical plants
• DHS interim final rule on April 9, 2007
• DHS final rule on November 20, 2007

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Chemical Facility Anti-Terrorism Standards Final
Rule, 11-20-2007

• Revises the list of chemicals of interest (COI)
• Revises screening threshold quantities for COI
• Some in food facilities (e.g., NH3, chlorine, H2,
  propane)
• Firms with COI above thresholds must complete and
  submit a Top-Screen (deadline 1-22-08)
• Top screen results not high risk facility
  (exempt) or high risk (tier 1 highest risk to 4
  least risk)
• Tier 1-4 firms must conduct security
  vulnerability study and comply with site security
  plans
• DHS notification of tier designations completed

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EPA (ANPR) Notice Regulating Greenhouse Gas
(GHG) Emissions under the Clean Air Act (CAA)

• July 30, 2008 EPA ANPR responds to Court
  decision
• Describes key provisions and programs in the CAA,
  its pros cons for regulating
• Raises issues for Congress to consider for
  possible future climate legislation and
• Discusses scientific information and issues
  raised by using CAA provisions.

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Supreme Court Ruling Massachusetts v. EPA on GHG

• Court said Clean Air Act authorizes EPA to
  regulate tailpipe greenhouse gas (GHG) emissions,
  if EPA finds they contribute air pollution that
  may endanger public health or welfare.
• Major GHGs include carbon dioxide and methane

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Scope and Impacts

• Supreme Court decision on regulating GHGs under
  CAA covers but could lead to
  GHG from stationary sources like processing
  plants and commercial buildings
• Permitting of facilities under CAA tougher

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Scope and Impacts

• The potential regulation of greenhouse gases
  under any portion of the Clean Air Act could
  result in an unprecedented expansion of EPA
  authority that would have a profound effect on
  virtually every sector of the economy and touch
  every household in the land.EPA Administrator,
  Steven Johnson

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Analysis and Reaction

• Secretaries of Agriculture, Commerce,
  Transportation and Energy strongly disagreed on
  many of the legal, analytical, economic, science
  and policy interpretations in the ANPR, and
• Raised serious reservations about the relevance
  of the CAA in regulating GHGs that are influenced
  by global vs. local emissions

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Response to the ANPR

• ANPR comments due November 28, 2008
• Many companies and organizations across a broad
  spectrum of industries are planning comment on
  EPAs ANPR

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• Update on Legislative Issues Affecting Food

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Plethora of (Proposed) Food Safety Legislation

• Multiple Hearings in the Senate and House on food
  inspection
• Multiple Bills in the Senate and House with two
  major sponsors Senate Durbin (D-IL) and House
  Representative Dingell (D-MI)
• Certain provisions have general food industry
  support but many do not
• Passage not expected in the waning days of 110
  Congress

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Other Proposed Food-Related Legislation

• H.R. 3783 Trans Fat Truth in Labeling Act of
  2007, Steve Israel (D-NY)
• Several Bills to amend USDA School Lunch Program
  to limit or remove food of minimal nutritional
  value
• Popcorn (diacetyl butter flavorings) Workers Lung
  Disease Prevention Act, H.R.2693, Woolsey, (D-CA)
• OSHA Bill, Protecting America's Workers Act, HR
  2049 Woolsey (D-CA) and S1244 Kennedy (D-MA) and
  Murray (D-WA).
• None enacted

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Current U.S. House and Senate Composition

• Senate Democrats 49
• Republicans 49
• Independents 2
• House Democrats 235 (54)
• Republicans 199 (46)
• Vacant 1
• Independents generally caucus with Democrats

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2008 Senate Races

• 35 Seats up for re-election
• Democrats have an advantage needing to defend
  only 12 seats, while Republicans must defend 23.
• Five Republicans, but no Democrats have announced
  that they are retiring.
• Biggest open seat gap between the parties in 50
  years
• 11 of 12 Democrats are favored
• As many as 5-9 of the Republicans are at risk
• 60 Votes in the Senate prevent a filibuster

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2008 U.S. House Races

• All 435 seats up for re-election
• Democrats 6 retiring incumbents
• Republicans 26 retiring incumbents
• InTrade.com, the only betting site currently
  offering odds on control of the House, puts the
  likelihood of the Democrats retaining control at
  about 90 as of early October 2008

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• Thank You!