FEDERAL COURT FINDS AN OVERSIGHT IN APHIS’ OVERSIGHT OF BIOPHARMING
Phill Jones
In August, the US District Court for the District of Hawaii ruled that the US Department of Agriculture had violated environmental statutes by permitting four companies to grow plants genetically engineered to produce pharmaceuticals. Activists hailed the decision as the first federal court ruling on the practice of biopharming.
Roots of the Litigation
The case has its origins in a petition filed by the GE Food Alert coalition in December 2002. The coalition called for an immediate moratorium on the planting of food crops engineered to synthesize pharmaceuticals and industrial chemicals. This freeze, the petitioners stated, would provide the USDA with the chance to perform a programmatic environmental impact statement to assess the effect of the USDA’s Animal and Plant Health Inspection Service (APHIS) biopharming regulations. The petitioners also wanted the USDA and APHIS to loosen rules governing public access to confidential business information about biopharm tests.
In March 2003, APHIS requested public comments on its permitting process for the field testing of biopharm plants. A month later, the agency sent the GE Food Alert coalition a response to its petition, which the association characterized as a mere dismissal of its concerns.
In November 2003, the Center for Food Safety, the Hawaiian-Environmental Alliance (KAHEA), Friends of the Earth, and Pesticide Action Network North America filed a complaint with the Hawaii district court, which they amended twice over the next year and a half. The final complaint, filed in August 2005, alleged that APHIS had violated the Administrative Procedure Act when it failed to respond to the petition. The complaint also presented broad allegations that APHIS had violated the National Environmental Policy Act (NEPA) and the Endangered Species Act (ESA) in implementing its program to regulate the testing of biopharm crops.
The Plaintiffs further alleged that APHIS had violated NEPA and the ESA by issuing four permits for testing biopharm crops in Hawaii. From 2001 to 2003, APHIS granted permits to ProdiGene, Monsanto, the Hawaii Agriculture Research Center, and Garst Seed for performing limited field tests of corn and sugarcane engineered to produce hormones, vaccines, and other therapeutic proteins. The tests, completed by the trial date, took place on Kauai, Maui, Molokai and Oahu.
APHIS Wins One, Loses Eight
Judge J. Michael Seabright heard arguments for the case in July 2006. Here, the Plaintiffs contended that APHIS’ denial of the December 2002 petition had been arbitrary and capricious. The judge did not agree. He pointed out that APHIS had informed the Plaintiffs that a decision on whether to promulgate new biopharming regulations depended on the result of an ongoing programmatic environmental impact statement. The petition’s demands for new biopharming regulations had been premature, Seabright decided, and judicial intervention would inappropriately interfere with APHIS’s administrative proceedings. The judge also concluded that a network of laws prevented APHIS from acceding to demands for enabling the public to access confidential business information. The judge granted summary judgment for APHIS on the claim arising from the petition.
The agency did not fare as well with eight allegations that APHIS had violated NEPA and the ESA when it granted each of the four biopharming permits. In his decision, Judge Seabright placed the asserted violations of environmental laws in the context of Hawaii’s ecology.
"The Fish and Wildlife Service reports on its website that there are 329 endangered and threatened plant and animal species in Hawaii," he wrote, "including thirty-two types of birds." Hawaii has more endangered and threatened species than any other state – harboring 25 percent of all listed species in the United States. "Although strict compliance with the ESA’s procedural requirements is always critically important," he observed, "these requirements are particularly crucial in Hawaii given Hawaii’s extensive number of threatened and endangered species."
To protect the environment, the ESA requires all federal agencies to obtain information from the US Fish and Wildlife Service or the National Marine Fisheries Service about any endangered and threatened species in the area of proposed agency action. APHIS failed to take this step. Nevertheless, the agency argued that it had complied with the ESA, because it had determined that its proposed actions would not affect listed species or critical habitats.
"APHIS’s argument misses the mark," the judge scolded. While a formal consultation about endangered species might not have been required, the problem is that APHIS skipped the mandatory step of obtaining information about listed species and critical habitats.
APHIS then turned to its fallback defense: the Plaintiffs’ claims must fail because the Plaintiffs had not provided any evidence to show that the biopharm crop tests had harmed a single listed species or habitat in any way. The judge characterized the argument as "absurd," because "APHIS argues that the Plaintiffs may not proceed with a lawsuit against the agency unless APHIS actually facilitates an organism’s extinction." The agency’s good fortune in avoiding such a disaster cannot absolve APHIS of its failure to follow a clear congressional mandate.
The court also concluded that APHIS had violated NEPA because its administrative record fails to indicate that, when APHIS had issued the four permits, the agency had considered the applicability of NEPA, the statute’s categorical exclusions, or the exceptions to those exclusions. After reviewing APHIS’ records, the judge found no evidence of an environmental assessment, an environmental impact statement, or an explanation as to why neither study had been required before granting the four permits. Seabright concluded that APHIS’ issuance of the four permits had been arbitrary and capricious, and he granted the Plaintiffs summary judgment on claims that APHIS had violated the ESA and NEPA when it granted the four permits.
Biopharming Moratorium?
Following Judge Seabright’s decision about the ESA and NEPA violations, environmental groups called for a moratorium on open-air tests of biopharm crops.
"We are asking the judge to enjoin the issuance of any biopharma permits anywhere in the country unless and until APHIS completes a programmatic analysis of their regulatory program," Paul H. Achitoff told The Washington Post. Achitoff, a lawyer with the Honolulu office of Earthjustice, served as lead attorney for the Plaintiffs.
On August 22, Judge Seabright held a hearing on this very matter: should the court impose a nationwide remedy? At the hearing, the Plaintiffs argued that APHIS had developed and implemented an organized, national biopharming program. Consequently, NEPA and the ESA required the agency to study the impact of this program on the environment and endangered species. APHIS’s failure to consider the cumulative effect of its national biopharming program, they argued, constitutes a violation of NEPA and the ESA.
APHIS argued against the existence of a "final agency action" for purposes of the NEPA claim and the existence of an "agency action" for purposes of the ESA claim. The court agreed.
In Judge Seabright’s view, the Plaintiffs had not pointed to any final agency action – just the issuance of the four permits. The judge could find no evidence that APHIS’ policies support an allegation that it has a biopharming program that is a final agency action sufficient for judicial review.
The judge noted that the ESA contains a broad citizen suit provision and that the Plaintiffs’ ESA claim is not limited by the "final agency action" requirement. Federal agencies must comply with the ESA’s procedural requirements when an agency proposes an "agency action." The judge could not see how APHIS’ method of regulating biopharm crops constitutes an agency action distinct from the act of issuing individual permits. The judge granted summary judgment for APHIS.
Earthjustice’s Achitoff told The Honolulu Star Bulletin that the days of rubber-stamping crop permits for genetically engineered crops have passed. He suggested that the USDA must now hold public hearings on each permit to comply with NEPA obligations.
Speaking for APHIS, Rachel Iadicicco reported that the agency had recently made policy changes to satisfy the court’s concerns. APHIS is also devising a sweeping programmatic environmental impact statement to address broader concerns about its oversight of genetically engineered crops.
Selected Sources
Ctr. for Food Safety v. Johanns, Civ. No. 03-00621 (D. Haw., Aug. 10, 2006).
Ctr. for Food Safety v. Johanns, Civ. No. 03-00621 (D. Haw., Aug. 31, 2006).
Finnegan, T (2006) Ruling hailed by opponents of genetically altered crops. The Honolulu Star Bulletin (August 15, 2006).
Weiss, R (2006) Gene-Altered Crops Denounced. The Washington Post, A03 (August 16, 2006).
Phill Jones
BiotechWriter.com
PhillJones@nasw.org
CANADIAN COMPANY DEVELOPS SAFFLOWER AS NEW SOURCE OF INSULIN
SemBioSys Genetics Inc., a Canadian biotechnology company developing a broad pipeline of protein-based pharmaceuticals and non-pharmaceutical products, has announced it has achieved its commercial target levels of human insulin (insulin) accumulation in safflower with 1.2 percent of total seed protein.
Results from the company’s commercial plant system exceeded its target of one percent accumulation and confirm the potential of plant-produced insulin to fundamentally transform the economics and scale of insulin production.
"These results demonstrate that we have produced an authentic insulin molecule in safflower at commercially viable levels. Achieving our goal of one percent insulin accumulation in safflower confirms that SemBioSys has the potential to dramatically impact the economics of insulin manufacturing," said Andrew Baum, President and CEO of SemBioSys Genetics Inc. "At these levels we can produce over one kilogram of insulin per acre of safflower production, which is enough to supply 2,500 patients for one year of treatment. We believe that we could meet the world’s total projected insulin demand in 2010 with less than 16,000 acres of crop production. Our plan is to continue to scale-up production for sufficient material to initiate clinical trials and file an Investigational New Drug (IND) application in the second half of 2007."
SemBioSys intends to continue its preclinical program with safflower-derived insulin and assemble the components of its IND application, including toxicology, immunology profiles and demonstration of efficacy in animal models. The Company expects to be in a position to submit an IND to the US Food and Drug Administration in the second half of 2007 in preparation for a clinical trial in late 2007 or early 2008.
SemBioSys says that the combination of inhaled insulin, the increasing incidence of diabetes due to dietary trends, and the earlier diagnosis of the disease will cause demand for insulin to quadruple in the next five years.
SemBioSys believes its safflower-produced insulin can reduce capital costs compared to existing insulin manufacturing by 70% and product costs by 40%. SemBioSys believes safflower-produced insulin would require approximately $80 million in capital investment for 1,000 kilograms of insulin production capacity. Alternatively, insulin currently produced using fermentation is estimated to require $250 million in capital investment for 1,000 kilograms of production capacity. In addition, because of the ease in scaling-up crop acreage, plant-produced insulin offers significant improvements in the flexibility and speed of scale-up. SemBioSys has five years of experience growing transgenic safflower in Canada, the US, Mexico, and Chile under permits issued by the pertinent regulatory authorities.
Insulin Production
Existing commercial insulin production methods typically rely on yeast (Saccharomyces cerevisiae) or bacteria (E. coli) genetically engineered to produce synthetic human insulin. These organisms are grown in large, capital-intensive steel bioreactors and the insulin is then extracted and purified for final formulation.
SemBioSys uses safflower to produce human insulin. Through its proprietary technology, SemBioSys is able to accumulate recombinant proteins, like insulin, in safflower. As the plant grows and the seed develops, the insulin protein is produced in the seed. Safflower production is based on conventional farming practices that have been adapted to ensure product integrity and confinement. The harvested seed is then processed using SemBioSys’ proprietary extraction process. Conventional enzymatic or chemical cleavage techniques and downstream processing methods are employed to produce purified insulin.
The selection of safflower as its commercial plant system was based on safflower’s superior technical profile as well as the advantages it offers to address the strict regulatory criteria expected for plant-made pharmaceuticals. Safflower is a low acreage crop that can be easily segregated from other safflower production. This, in combination with the biology of the crop’s pollination patterns, facilitates containment of the crop.
SemBioSys’ platform offers two important capabilities – to cost effectively extract oilbodies from seeds at scale, and to use genetic engineering to attach proteins to oilbodies in seed.
More info: http://www.sembiosys.ca/Docs/FactSheet.pdf

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