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Issue link: https://read.dmtmag.com/i/49532
TOP OF THE NEWS FDA warns retailers about penalties for selling tobacco to children Money penalties may follow 1,200 retailers, the majority of which respond to violations relating to selling tobacco to minors, as part of its ongoing effort to reduce tobacco use among children. While most retail establishments inspected by the FDA T have been found to be in compliance with the law, some retailers are still selling cigarettes and smokeless tobacco to minors, the FDA said in a statement. The warning letters may be followed by civil money penalties if retailers con- tinue to violate the law. "It should worry every parent that 20 percent of U.S. high school students smoke cigarettes," said FDA Commissioner Margaret A. Hamburg. "President Obama and the FDA are committed to preventing children from smoking. For many young people, that first cigarette or use of smokeless tobacco will lead to a lifetime of addic- tion, and for many, serious disease. More than 80 percent of adult smokers begin smoking before 18 years of age. Retailers are vital partners in the FDA's efforts to prevent tobacco use among kids." President Obama signed the Family Smoking Prevention and Tobacco Control Act that gives the FDA authority to regulate tobacco products to prevent use by minors and reduce the impact on public health. One of the law's provi- sions permits the FDA to contract with states and territories n Biodiesel industry sets new annual production record, fueling job creation The U.S. biodiesel industry has set a new record for annual production, according to the latest EPA figures. The industry has produced more than 802 million gallons of biodie- sel in plants from Florida to Iowa to Washington state, the figures show, more than doubling last year's pro- duction of about 315 million gallons and breaking the previous record of about 690 million gallons set in 2009. The new record comes as a federal tax incentive for biodiesel was reinstated this year, and as the incentive is in danger of expiring on Dec. 31 without congressional action. 6 NOVEMBER/DECEMBER 2011 he U.S. Food and Drug Administration (FDA) said Nov. 10 that it sent warning letters to more than to conduct compliance check inspections of tobacco retail- ers. In 2011, the FDA awarded compliance contracts totaling more than $24 million to 38 states, including the District of Columbia, supporting the creation of at least 266 jobs. As of Nov. 10, FDA said, its commissioned officials have conducted more than 27,500 compliance checks. Retail inspections focus on sale and distribution restric- tions, including: Age and ID verification Requirements for labeling and advertising of smokeless tobacco products Restrictions on the sale of single cigarettes A ban on certain candy and fruit-flavored cigarettes Prohibited self service displays and vending machines Full inspection results are posted on the FDA website. • • • • • The site lists all retailer warning letters and a monthly list of inspected establishments where no violations were observed. "Through this program, we are exercising the authority Congress and the President gave to FDA to enforce the youth access and advertising regulations that took effect in June 2010," said Lawrence R. Deyton, director of FDA's Center for Tobacco Products. "While we applaud the efforts made by many retail establishments to protect our kids, the fact that our nation's youth can walk into 1,200 retail loca- tions and still obtain access to these deadly products is 1,200 too many." "I can say without question that this tax credit has helped us grow our production and hire new people, and it will play a big role in our growth going forward," said Gabe Neeriemer, presi- dent of Patriot Biodiesel in Greensboro, N.C. "It will affect how many people we can hire, how much feedstock and equipment we buy, how many truckers we put to work delivering fuel." Patriot Biodiesel was forced to tem- porarily suspend operations when the tax credit expired in 2010. With the incentive restored this year, the plant is not only back online but is expanding production to about 5 million gallons per year and hiring a half dozen new employees. The biodiesel industry's rebound comes after Congress reinstated the fuel's $1-per-gallon tax credit in December 2010. n EIA Outlook: Refiner acquisition cost of crude to average $100 through 2012 The average refiner acquisition cost of crude oil is expected to remain relatively flat, averaging about $100 per barrel, in 2011 and 2012, the Energy Information Administration (EIA) reported in the Nov. 8 Short-Term Energy Outlook. The value of West Texas Intermediate (WTI) benchmark crude was about $11 per barrel below the U.S. refiner acquisi- tion cost of crude oil in the third quarter of this year, the Outlook noted. West Texas Intermediate crude oil spot prices fell from an average of $110 NPN Magazine n www.npnweb.com