• Legislation introduced by US Rep. Randy Weber (R-TX) would
permanently put a stop to federal tax credits for biofuels produced
with animal fats, according to the American Cleaning Institute (ACI).
ACI, the trade association for the cleaning product supply
chain, says the bill (HR 1866, the“Animal Fat Tax Credits Act”)
would prevent the renewal of tax credits for biodiesel and renewable diesel that is produced from animal fats, which until the end
of 2016 were eligible for a $1 per gallon tax credit.
“Congressman Weber’s bill would provide much needed relief
to the domestic oleochemical industry,”said Jacob Cassady, ACI associate director, government affairs.“We believe this measure should
be a part of any tax reform package that Congress looks at this year.”
Animal fats are the traditional feedstock for cleaning and
personal care products such as laundry detergent, toothpaste,
bar soap, bath gels and shampoos. Animal fats provide domestic
chemical producers with a raw material that affords them a cost
advantage over foreign manufacturers that use palm oil and similar materials as their primary feedstock. This industry supports
approximately 25,000 American jobs.
ACI’s member companies include the producers of oleochemicals, such as fatty acids and alcohols made from seed oils and
animal fats, which are historically used in soaps and detergents.
The biofuel subsidy in question distorts the domestic market for
animal fats by diverting this important raw material away from
use in the manufacturing of cleaning products and toward the
production of biodiesel. As a result, animal fats costs have increased 116% since 2006, the year the tax credit first became law.
The Joint Committee on Taxation estimated eliminating the
tax credit for biofuels that use animal fats would have saved $299
million in fiscal year 2016.
The supply of animal fats in the US is largely inelastic (
animals are raised for their meat, not fat), therefore the increased
demand has rapidly outstripped supply, placing American cleaning product manufacturers at a tremendous market disadvantage,
according to ACI.
Lawmakers Hear from Hispanics
On Cosmetics Safety Issues
• “Consumers deserve to know that their daily routine of
applying makeup, using aftershave, or washing their children’s
hair will not put their health at risk,” said Jane L. Delgado, PhD,
president and CEO of the National Alliance for Hispanic Health,
the nation’s leading Hispanic health advocacy group. The Alliance
recently revealed its support of the Personal Care Products Safety
Act (S.1113) introduced by Senators Susan Collins (R-ME) and
Dianne Feinstein (D-CA) as part of its “day of action,” when
Alliance members visit, call and write members of Congress.
“Every day millions of men and women use cosmetics and
personal care products like shampoo and lotion and assume
that they are safe but the FDA does not have adequate authority to ensure the ingredients in these products that American
families use daily are safe, nor does FDA have adequate authority to recall these products if they are found to be dangerous,”
Among actions that would be authorized by S.1113: FDA
would have the adequate authority to order recalls of cosmetic and personal care products that threaten consumer safety,
such as a contaminated product; companies would be required
to provide timely reporting of adverse events; FDA would be
required to annually evaluate for safety at least five chemicals
used in cosmetic and personal care products; and, companies
would be required to include ingredient information and warnings for products sold online.
The legislation’s requirements are budget-neutral and financed through a new user fee program paid by cosmetic and
personal care product companies.
“This legislation, if enacted, would represent the first new
consumer protections on cosmetics and personal care products
in almost 80 years. It is action long overdue and we look forward
to the bill becoming law,” concluded Delgado.
More info: www.healthyamericas.org
ACI PRAISES BILL TO HALT
ANIMAL FAT TAX CREDITS
• A new association with skill sets in scientific, technical, regu-
latory, business and legal affairs, Cosmetic Consultants Europe (CCE)
contains members offering specific skill sets such as scientific, regu-
latory (safety assessment, RPs, REACH compliance), formulation and
research, genetic and toxicological testing, marketing with strategic
global partners, GMP auditing and legal experts for the cosmetic,
CCE will host its first “Open Academy” on Oct. 16 in Barcelona,
Spain, where its experts will provide presentations on topics es-
sential to the cosmetic, personal care, fine chemical and borderline
More info: www.cosmeticsconsultantseurope.org
ASSOCIATION ALERT: COSMETIC CONSULTANTS EUROPE (CCE)