Sale and Disposal of National Forest System Timber; Timber Sale Contracts; Indices To Determine Market-Related Contract Term Additions, 37266-37269 [05-12811]
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37266
Federal Register / Vol. 70, No. 124 / Wednesday, June 29, 2005 / Rules and Regulations
TABLE 1.—OMB CONTROL
NUMBERS—Continued
30 CFR citation
77.1101 .................................
77.1200 .................................
77.1201 .................................
77.1202 .................................
77.1404 .................................
77.1432 .................................
77.1433 .................................
77.1702 .................................
77.1713 .................................
77.1900 .................................
77.1901 .................................
77.1906 .................................
77.1909–1 .............................
90.201(c) ...............................
90.202 ...................................
90.204 ...................................
90.209 ...................................
90.220 ...................................
90.300 ...................................
90.301 ...................................
OMB control
No.
1219–0051
1219–0073
1219–0073
1219–0073
1219–0034
1219–0034
1219–0034
1219–0078
1219–0083
1219–0019
1219–0082
1219–0034
1219–0025
1219–0011
1219–0011
1219–0011
1219–0011
1219–0011
1219–0011
1219–0011
[FR Doc. 05–12816 Filed 6–28–05; 8:45 am]
BILLING CODE 4510–43–P
DEPARTMENT OF LABOR
Mine Safety and Health Administration
30 CFR Part 75
RIN 1219–AA76
Underground Coal Mine Ventilation—
Safety Standards for the Use of a Belt
Entry as an Intake Air Course To
Ventilate Working Sections and Areas
Where Mechanized Mining Equipment
Is Being Installed or Removed
Mine Safety and Health
Administration, Labor.
ACTION: Final rule; conforming to the
Court’s opinion.
AGENCY:
SUMMARY: On April 2, 2004, the Mine
Safety and Health Administration
published a final rule revising
underground coal mine ventilation
standards to allow the use of air
traveling in the belt entry to ventilate
working sections or areas where
mechanized mining equipment is being
installed or removed. The International
Union, United Mine Workers of
America and Jim Walter Resources, Inc.
challenged the rule. On May 24, 2005,
the U.S. Court of Appeals for the District
of Columbia Circuit issued an opinion
denying the Union’s petition for review
and granting the petition of Jim Walter
Resources, Inc. Jim Walter Resources,
Inc.’s petition challenged the Secretary
of Labor’s promulgation of 30 Code of
Federal Regulations section 75.350(a)(2),
which, under certain circumstances, set
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a velocity cap of 500 feet per minute in
the belt entry of underground coal
mines. This document provides notice
of, and effectuates, the Court’s opinion
to vacate paragraph (a)(2) of section
75.350 and remand the matter to the
Secretary of Labor.
DATES: Effective June 29, 2005.
FOR FURTHER INFORMATION CONTACT:
Rebecca J. Smith, Acting Director, Office
of Standards, Regulations, and
Variances, MSHA, 1100 Wilson
Boulevard, Room 2350, Arlington,
Virginia 22209–3939. Ms. Smith can be
reached at smith.rebecca@dol.gov
(Internet e-mail), (202) 693–9440
(voice), or (202) 693–9441 (facsimile).
The document is also available on the
Internet at https://www.msha.gov/
regsinfo.htm. We maintain a listserve on
our Web site that enables subscribers to
receive e-mail notification when we
publish rulemaking documents in the
Federal Register. To subscribe to the
listserve, visit our site at https://
www.msha.gov/subscriptions/
subscribe.aspx.
SUPPLEMENTARY INFORMATION: On April
2, 2004, the Mine Safety and Health
Administration (MSHA) published a
final rule (69 FR 17480) revising
underground coal mine ventilation
standards to allow the use of air
traveling in the belt entry (belt air) to
ventilate working sections or to areas
where mechanized mining equipment is
being installed or removed. In response
to the belt air rule’s publication, the
International Union, United Mine
Workers of America (‘‘the Union’’) and
Jim Walter Resources, Inc. (‘‘JWR’’) filed
petitions with the Court of Appeals for
the DC Circuit challenging the rule on
separate grounds. The court
consolidated both petitions and issued a
decision, International Union, United
Mine Workers of America v. Mine Safety
and Health Administration, 407 F.3d
1250 (DC Cir. 2005). The Court denied
the Union’s petition for review. In the
petition of JWR, the coal mining
company challenged the Secretary’s
promulgation of 30 Code of Federal
Regulations (CFR) 75.350(a)(2), which
states that ‘‘[t]he maximum air velocity
in the belt entry must be no greater than
500 feet per minute unless otherwise
approved in the mine ventilation plan.’’
JWR contended that the 500 feet per
minute velocity cap referenced in the
section was invalid because the
Secretary failed to comply with the
notice-and-comment requirements of
section 101(a) of the Federal Mine
Safety and Health Act of 1977, 30
United States Code (U.S.C.) 811(a), and
the Administrative Procedure Act, 5
U.S.C. 553(b).
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The Court of Appeals granted JWR’s
petition; vacated paragraph (a)(2) of
§ 75.350(a)(2); and remanded the matter
to the Secretary of Labor. In compliance
with the Court’s opinion the provision
is removed from 30 CFR and the
remaining provision is renumbered.
List of Subjects in 30 CFR Part 75
Mandatory safety standards, Mine
safety and health, Underground coal
mines, Ventilation.
Dated: June 23, 2005.
David G. Dye,
Deputy Assistant Secretary of Labor for Mine
Safety and Health.
Chapter I of Title 30, part 75 of the
Code of Federal Regulations is amended
as follows:
I
PART 75—MANDATORY SAFETY
STANDARDS—UNDERGROUND COAL
MINES
1. The authority citation for part 75
continues to read as follows:
I
Authority: 30 U.S.C 811.
2. Amend § 75.350 by removing
paragraph (a)(2) and redesignating
paragraph (a)(3) as the new (a)(2).
I
[FR Doc. 05–12813 Filed 6–28–05; 8:45 am]
BILLING CODE 4510–43–P
DEPARTMENT OF AGRICULTURE
Forest Service
36 CFR Part 223
RIN 0596–AC29
Sale and Disposal of National Forest
System Timber; Timber Sale
Contracts; Indices To Determine
Market-Related Contract Term
Additions
Forest Service, USDA.
Interim final rule; request for
comments.
AGENCY:
ACTION:
SUMMARY: This interim final rule
amends the current regulation by
requiring the use of three alternative
Producer Price Indices (PPI) from the
Bureau of Labor Statistics in lieu of the
four PPI that the Forest Service has
monitored for use in timber sale
contract market-related contract term
additions. After December 2003, the
Bureau of Labor Statistics discontinued
providing three of the four PPI that the
Forest Service has monitored and
changed the reference number for the
fourth PPI. The Forest Service is issuing
an interim final rule implementing the
use of the three alternative PPI, prior to
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Federal Register / Vol. 70, No. 124 / Wednesday, June 29, 2005 / Rules and Regulations
publishing a final rule. By using the
three alternative PPI, the Forest Service
will be able to continue providing
market-related contract term additions
during drastic reductions in wood
products market prices.
DATES: This interim final rule is
effective June 29, 2005. Comments must
be received in writing on or before
August 29, 2005.
ADDRESSES: Send written comments by
mail to USDA Forest Service, Director
Forest Management, 1400 Independence
Avenue, SW., Mail Stop 1103,
Washington, DC 20250–0003; via e-mail
to: MRCTA@fs.fed.us; or via facsimile to
(202) 205–1045. Comments may also be
submitted via the World Wide Web
Internet Web site at: https://
www.regulations.gov. All comments,
including names and addresses when
provided, are placed in the record and
are available for public inspection and
copying. Information pertaining to the
indices is available for public review on
the Forest Service World Wide Web/
Internet site at: https://www.fs.fed.us/
forestmanagement/infocenter/
index.shtml. Alternatively, these can be
viewed in the office of the Director of
Forest Management, Third Floor,
Southwest Wing, Yates Building, 201
14th Street, SW., Washington, DC.
Visitors are encouraged to call ahead to
(202) 205–1496 to facilitate entry into
the building.
FOR FURTHER INFORMATION CONTACT: Don
Benner, Forest Management Staff, at
(202) 205–0855, or Richard Fitzgerald,
Forest Management Staff, (202) 205–
1753.
SUPPLEMENTARY INFORMATION:
Background
Experience indicates that substantial
lumber market declines that would
warrant a market-related contract term
addition generally coincide with
substantial economic distress in the
wood products industry. Such economic
distress broadly affects community
stability, the ability of the wood
products industry to supply
construction lumber and other wood
products from domestic sources, and
threatens the existence of wood
manufacturing plants needed to meet
future demands for wood products.
The softwood lumber market decline
in 1980–1982 resulted in large numbers
of defaults on timber sale contracts. The
market-related contract term addition
policy was developed in order to
establish procedures under the Federal
Timber Contract Payment Modification
Act or ‘‘Buyout Act’’ for extending
contract termination dates in response
to severely declining wood products
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markets. The Buyout Act was
considered an extraordinary measure to
respond to a crisis, but also recognized
the need to prevent such a crisis from
occurring in the future. Accordingly, on
December 7, 1990, the Department
published a final rule (55 FR 50643) to
establish procedures at 36 CFR 223.52
for extending contract termination dates
to avoid another crisis like the crisis
which occurred in the early 1980s due
to severe adverse conditions in the
wood products markets. The rule
provides that if the Chief finds that
adverse wood products market
conditions have resulted in a drastic
reduction in wood product prices and
the purchaser of a qualifying contract
makes a written request, additional time
may be added to the contract term.
A finding that a drastic reduction in
wood product prices has occurred
constitutes a finding that the substantial
overriding public interest justifies
extension of certain timber sale
contracts, in accordance with the
National Forest Management Act of
1976 (16 U.S.C. 72a(c)) and existing
regulations at 36 CFR 223.115(b).
Since adoption of the rule, a drastic
reduction in wood product prices has
occurred in 1991, 1995, 1998, and 2000.
As a result, the Forest Service notified
purchasers and, upon the purchasers’
written request, added an additional
year to timber sale contract terms for
qualifying contracts.
The rule required the use of various
wood product Producer Price Indices
(PPI), prepared by the Department of
Labor, Bureau of Labor Statistics (BLS),
to determine whether a drastic
reduction in wood product prices has
occurred.
Appearing before the House
Appropriations Subcommittee on
Interior and Related Agencies, on April
28, 1992 (Testimony Report number, T–
RCED–92–58), the General
Accountability Office (GAO) testified
that in implementing the regulation in
1991, the Forest Service used a formula
with inappropriate data to reach a
determination that prices for wood
products from the Pacific Northwest had
drastically declined. Specifically, GAO
testified that the Forest Service used a
formula developed with price data that
were not adjusted to account for
seasonal fluctuations. GAO noted that if
the Forest Service had used the BLS’
seasonally adjusted price data, the
formula would not have indicated a
drastic price reduction and would not
have triggered contract extensions on
the west side of the Pacific Northwest.
GAO further testified that the BLS
advises use of seasonally adjusted data
are designed to eliminate the effects of
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37267
normal market fluctuations that occur at
about the same time, and in about the
same magnitude, each year, such as
price movements resulting from normal
weather patterns and regular production
and marketing cycles. GAO
recommended that the Secretary of
Agriculture direct the Chief of the Forest
Service to stop using the BLS’
unadjusted indices in reaching
determinations that wood product
prices have drastically declined.
The Secretary of Agriculture agreed to
re-examine the use of the BLS’
unadjusted PPI to determine whether
wood product prices showed a drastic
decline. Subsequently, the Forest
Service concurred that seasonally
adjusted PPI, adjusted to a constant
dollar base, could be used to determine
whether a drastic reduction in wood
product prices has occurred and,
therefore, whether a market-related
contract term addition should be
granted. However, after December 1994,
the BLS stopped applying seasonal
adjustments to the monitored PPI, since
they found insufficient statistical
evidence to demonstrate a need to
continue adjusting these indices.
The initial PPI from the BLS used by
the Forest Service were from the
commodity series and included lumber
indices for Douglas Fir, Dressed
(081101); Southern Pine, Dressed
(081102); Other Species, Dressed
(081103); and Hardwood Lumber (0812).
However, on May 1, 1998, the
Department published a final rule (63
FR 24110) requiring the use of Industry
Series PPI from the BLS, rather than the
previously required indices in the
commodity series. In addition to
changing the index series, the final rule
made a number of other technical
changes. The Industry Series PPI used
were Western Softwood (SIC 24214),
Eastern Softwood (SIC 24213), and
Hardwood Lumber (SIC 24211), which
were considered more representative of
the sawmill industry than the prior
indices in the commodity series. The
Forest Service also added the Industry
Series Wood Chips (SIC 24215) PPI to
measure market changes in the price of
chips and to address the volatility of the
wood chip market. In order to increase
the utilization of small diameter
material, many contracts include or
consist primarily of chipable material.
However, after December 2003, the
BLS discontinued publishing the
following three lumber PPI: Western
Softwood Lumber (SIC 24214), Eastern
Softwood Lumber (SIC 24213), and
Hardwood Lumber (SIC 24211), which
were used by the Forest Service. The
BLS also changed the Wood Chips PPI
number from SIC 24215 to NAICS
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Federal Register / Vol. 70, No. 124 / Wednesday, June 29, 2005 / Rules and Regulations
3211135. In lieu of the three
discontinued PPI, the Forest Service
plans to use, effective retroactively to
January, 2004, the following two lumber
PPI: Softwood Lumber (0811) and
Hardwood Lumber (0812). The Forest
Service will continue to use the Wood
Chips PPI (reference number NAICS
3211135).
A review of other readily available
indices, such as Random Lengths
indices and Western Wood Products
Association indices, representing the
same wood product markets shows that
indices comparable to these PPI do not
exist. Some regional indices are
available; however, the timing,
frequency, and procedure for collection
of information for these indices varies.
Some index services or associations use
previous month invoice prices that are
provided by their members, while other
services use current month negotiated
bid prices or sale prices. Wood product
price indices, prepared nationally and
consistently, are not available.
The BLS discontinued publishing
seasonally adjusted versions of the
Softwood Lumber (0811) and Hardwood
Lumber (0812) PPI after December 2003.
None of the three indices to be
implemented in this interim final rule
are seasonally adjusted. Each PPI is
adjusted to a constant dollar base by
dividing it by the PPI for All
Commodities (00000000) to eliminate
changes due to inflation and deflation.
A drastic reduction in wood product
prices has occurred when, for 2 or more
consecutive quarters after contract
award, the applicable adjusted PPI is
less than 85 percent of the average of
such adjusted indices for the 4 highest
of the 8 calendar quarters immediately
prior to the qualifying quarter.
Forest supervisors determine which of
the PPI that the Forest Service monitors
is used for each contract. The selected
PPI is representative of the predominant
species and product, by volume,
included in the contract.
Regulatory Certifications
Environmental Impact
Regulatory Impact
This interim final rule deals with
business practices related to timber sale
contracts and, as such, has no direct
effect on the amount, location, or
manner of timber offered for purchase.
Section 31.1b of Forest Service
Handbook 1909.15 (57 FR 43180;
September 18, 1992) excludes from
documentation in an environmental
assessment or impact statement ‘‘rules,
regulations, or policies to establish
Service-wide administrative procedures,
program processes, or instructions.’’ The
Department’s preliminary assessment is
that this rule falls within this category
of actions and that no extraordinary
circumstances exist which would
require preparation of an environmental
assessment or environmental impact
statement. A final determination will be
made upon adoption of the final rule.
Good Cause Statement
Unfunded Mandates Reform
The Forest Service is issuing this
interim final rule implementing the use
of three alternative PPI to be able to
continue providing contract term
additions due to drastic reductions in
wood products markets, prior to
publishing a final rule. By using the
three alternative PPI, the Forest Service
will be able to continue providing
market-related contract term additions
during drastic reductions in wood
products market prices.
Pursuant to Title II of the Unfunded
Mandates Reform Act of 1995, which
the President signed into law on March
22, 1995, the Department has assessed
the effects of this rule on State, local,
and tribal governments and the private
sector. This rule does not compel the
expenditure of $100 million or more by
any State, local, or tribal governments or
anyone in the private sector. Therefore,
a statement under section 202 of the act
is not required.
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This interim final rule has been
reviewed under USDA procedures and
Executive Order 12866 on Regulatory
Planning and Review. OMB has
determined that this is not a significant
rule. This rule will not have an annual
effect of $100 million or more on the
economy nor adversely affect
productivity, competition, jobs, the
environment, public health or safety,
nor State or local governments. This
rule will not interfere with an action
taken or planned by another agency nor
raise new legal or policy issues. In short,
little or no effect on the national
economy will result from this rule
change. This action consists of
administrative changes to regulations
affecting timber sale contract length.
The PPI selected reflect the cyclic
nature of wood products markets and
help the agency determine whether a
drastic decline has occurred in these
particular markets.
Finally, this action will not alter the
budgetary impact of entitlements,
grants, user fees, or loan programs or the
rights and obligations of recipients of
such programs. Accordingly, this
interim final rule is not subject to OMB
review under Executive Order 12866.
Moreover, this interim final rule has
been considered in light of the
Regulatory Flexibility Act (5 U.S.C. 610
et seq.), and it is hereby certified that
this action will not have a significant
economic impact on a substantial
number of small entities as defined by
that act. Failure to adopt the PPI
selected for measuring drastic
reductions in wood product prices may
result in both small purchasers and
large purchasers not getting additional
time to complete their contracts.
Modifications to timber sale contract
price indices have the intended effect of
allowing purchasers additional time to
complete contracts when severe adverse
conditions have occurred in the wood
products markets.
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Controlling Paperwork Burdens on the
Public
This interim final rule does not
contain any recordkeeping or reporting
requirements or other information
collection requirements as defined in 5
CFR 1320 and, therefore, imposes no
paperwork burden on the public.
Accordingly, the review provisions of
the Paperwork Reduction Act of 1995
(44 U.S.C. 3501, et seq.) and
implementing regulations at 5 CFR part
1320 do not apply.
Comments Invited
The Forest Service invites comments
on this interim final rule implementing
the use of selected Commodity and
Industry Series PPI from the BLS to
apply market-related contract term
additions to timber sale contracts.
Comments received will be considered
in the development of the final rule,
which will be published in the Federal
Register.
List of Subjects in 36 CFR Part 223
Administrative practice and
procedure, Exports, Forests and forest
products, Government contracts,
National forests, Reporting and
recordkeeping requirements.
Therefore, for the reasons set forth in
the preamble, part 223 of title 36 of the
Code of Federal Regulations is amended
as follows:
I
PART 223—SALE AND DISPOSAL OF
NATIONAL FOREST SYSTEM TIMBER
1. The authority citation for part 223
continues to read as follows:
I
Authority: 90 Stat. 2958, 16 U.S.C. 472a; 98
Stat. 2213; 16 U.S.C. 618, 104 Stat. 714–726,
16 U.S.C. 620–620j, unless otherwise noted.
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Federal Register / Vol. 70, No. 124 / Wednesday, June 29, 2005 / Rules and Regulations
WA–2005–0001, by one of the following
methods:
• Federal eRulemaking Portal: https://
§ 223.52 Market-related contract term
www.regulations.gov. Follow the on-line
additions.
instructions for submitting comments.
*
*
*
*
*
• Agency Web site: https://
(b)* * *
www.epa.gov/edocket. EDOCKET, EPA’s
(1)* * *
electronic public docket and comment
(i) The Forest Service shall monitor
system, is EPA’s preferred method for
and use only the following indices:
receiving comments. Follow the on-line
instructions for submitting comments.
BLS producer
Index
• Fax: (206)–553–0110.
Index code
price index
series
• Mail: Office of Air, Waste, and
Toxics (AWT–107), U.S. EPA Region 10,
Hardwood LumCommodity
0812
1200 Sixth Ave., Seattle, Washington
ber.
Softwood Lumber Commodity
0811 98101–1128.
• Hand Delivery/Courier: EPA Region
Wood Chips ........ Industry ....
3211135
10, Service Center, 14th Floor, 1200
Sixth Ave., Seattle, Washington 98101;
*
*
*
*
*
Attention: Connie Robinson, Office of
Dated: June 17, 2005.
Air, Waste and Toxics (AWT–107). Such
Mark Rey,
deliveries are only accepted during
Under Secretary, Natural Resources and
normal hours of operation, and special
Environment.
arrangements should be made for
[FR Doc. 05–12811 Filed 6–28–05; 8:45 am]
deliveries of boxed information.
BILLING CODE 3410–11–P
Instructions: Direct your comments to
Docket ID No. R10–OAR–2005–WA–
0001. EPA’s policy is that all comments
received will be included in the public
ENVIRONMENTAL PROTECTION
docket without change, including any
AGENCY
personal information provided, unless
40 CFR Parts 52 and 81
the comment includes information
claimed to be Confidential Business
[Docket ID No. R10–OAR–2005–WA–0001;
Information (CBI) or other information
FRL–7929–7]
whose disclosure is restricted by statute.
Do not submit information that you
Approval and Promulgation of State
consider to be CBI or otherwise
Implementation Plans: Washington;
protected through EDOCKET,
Spokane Carbon Monoxide
regulations.gov, or e-mail. The EPA
Nonattainment Area; Designation of
EDOCKET and the federal
Areas for Air Quality Planning
regulations.gov Web sites are
Purposes
‘‘anonymous access’’ systems, which
AGENCY: Environmental Protection
means EPA will not know your identity
Agency (EPA).
or contact information unless you
ACTION: Direct final rule.
provide it in the body of your comment.
If you send an e-mail comment directly
SUMMARY: On November 29, 2004, the
to EPA without going through
State of Washington submitted a carbon regulations.gov, your e-mail address
monoxide (CO) maintenance plan for
will be automatically captured and
the Spokane serious nonattainment area included as part of the comment that is
to EPA for approval. The State
placed in the public docket and made
concurrently requested that EPA
available on the Internet. If you submit
redesignate the Spokane CO serious
an electronic comment, EPA
nonattainment area to attainment for the recommends that you include your
National Ambient Air Quality Standard
name and other contact information in
(NAAQS) for CO. In this action, EPA is
the body of your comment and with any
approving the maintenance plan and
disk or CD–ROM you submit. If EPA
redesignating the Spokane serious CO
cannot read your comment due to
nonattainment area to attainment.
technical difficulties and cannot contact
DATES: This direct final rule will be
you for clarification, EPA may not be
effective on August 29, 2005, without
able to consider your comment.
further notice, unless EPA receives
Electronic files should avoid the use of
comments by July 29, 2005. If comments special characters, any form of
are received, EPA will publish a timely
encryption, and be free of any defects or
withdrawal of the direct final rule in the viruses. For additional information
Federal Register informing the public
about EPA’s public docket, visit
that the rule will not take effect.
EDOCKET on-line or see the Federal
ADDRESSES: You may submit comments,
Register of May 31, 2002 (67 FR 38102).
identified by Docket ID No. R10–OAR–
For additional instructions on
2. Amend § 223.52 by revising
paragraph (b)(1)(i) to read as follows:
I
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37269
submitting comments, go to I. General
Information of the SUPPLEMENTARY
INFORMATION section of this document.
Docket: All documents in the docket
are listed in the EDOCKET index at
https://www.epa.gov/edocket. Although
listed in the index, some information is
not publicly available, i.e., CBI or other
information whose disclosure is
restricted by statute. Certain other
material, such as copyrighted material,
is not placed on the Internet and will be
publicly available only in hard copy
form. Publicly available docket
materials are available either
electronically in EDOCKET or in hard
copy at the Office of Air, Waste, and
Toxics (AWT–107), U. S. EPA Region
10, 1200 Sixth Ave., Seattle,
Washington 98101; open from 8 a.m.–
4:30 p.m. Monday through Friday,
excluding legal holidays. The telephone
number is (206) 553–4273. Copies of the
submittal, and other information
relevant to this proposal are also
available for public inspection during
normal business hours at the
Washington State Department of
Ecology, 300 Desmond Drive SE, Lacey,
Washington 98503.
FOR FURTHER INFORMATION CONTACT:
Connie L. Robinson, Office of Air, Waste
and Toxics (AWT–107), EPA Region 10,
1200 Sixth Avenue, Seattle WA 98101–
1128, telephone number: (206) 553–
1086; fax number: 206–553–0110; or email address: robinson.connie@epa.gov.
SUPPLEMENTARY INFORMATION:
Throughout this document, wherever
‘‘we,’’ ‘‘us,’’ or ‘‘our’’ is used, we mean
the EPA. Information is organized as
follows:
I. General Information
II. What Action is EPA taking?
III. What is the background for this Action?
IV. What Evaluation Criteria were used for
the Maintenance Plan and Redesignation
Request Review?
V. EPA’s Evaluation of the Spokane
Maintenance Plan and Redesignation
Request
A. How does the State Show that the Area
Has Attained the CO NAAQS?
B. Does the Area have a fully approved SIP
and has the area met all the relevant
requirements under section110 and part
D of the Clean Air Act?
C. Are the Improvements in Air Quality
Permanent and Enforceable?
D. Has the State Submitted a Fully
Approved Maintenance Plan pursuant to
section 175A of the Clean Air Act?
E. Did the State provide adequate base year
and maintenance year emissions
inventories?
Table 1 Spokane 2002 Attainment/Base Year
Actual Emissions, and 2010 and 2015
Projected Emissions (Tons CO/Winter Day)
F. How will the State continue to verify
attainment?
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]]>Agencies
[Federal Register Volume 70, Number 124 (Wednesday, June 29, 2005)]
[Rules and Regulations]
[Pages 37266-37269]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-12811]
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DEPARTMENT OF AGRICULTURE
Forest Service
36 CFR Part 223
RIN 0596-AC29
Sale and Disposal of National Forest System Timber; Timber Sale
Contracts; Indices To Determine Market-Related Contract Term Additions
AGENCY: Forest Service, USDA.
ACTION: Interim final rule; request for comments.
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SUMMARY: This interim final rule amends the current regulation by
requiring the use of three alternative Producer Price Indices (PPI)
from the Bureau of Labor Statistics in lieu of the four PPI that the
Forest Service has monitored for use in timber sale contract market-
related contract term additions. After December 2003, the Bureau of
Labor Statistics discontinued providing three of the four PPI that the
Forest Service has monitored and changed the reference number for the
fourth PPI. The Forest Service is issuing an interim final rule
implementing the use of the three alternative PPI, prior to
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publishing a final rule. By using the three alternative PPI, the Forest
Service will be able to continue providing market-related contract term
additions during drastic reductions in wood products market prices.
DATES: This interim final rule is effective June 29, 2005. Comments
must be received in writing on or before August 29, 2005.
ADDRESSES: Send written comments by mail to USDA Forest Service,
Director Forest Management, 1400 Independence Avenue, SW., Mail Stop
1103, Washington, DC 20250-0003; via e-mail to: MRCTA@fs.fed.us; or via
facsimile to (202) 205-1045. Comments may also be submitted via the
World Wide Web Internet Web site at: https://www.regulations.gov. All
comments, including names and addresses when provided, are placed in
the record and are available for public inspection and copying.
Information pertaining to the indices is available for public review on
the Forest Service World Wide Web/Internet site at: https://www.fs.fed.us/forestmanagement/infocenter/index.shtml. Alternatively,
these can be viewed in the office of the Director of Forest Management,
Third Floor, Southwest Wing, Yates Building, 201 14th Street, SW.,
Washington, DC. Visitors are encouraged to call ahead to (202) 205-1496
to facilitate entry into the building.
FOR FURTHER INFORMATION CONTACT: Don Benner, Forest Management Staff,
at (202) 205-0855, or Richard Fitzgerald, Forest Management Staff,
(202) 205-1753.
SUPPLEMENTARY INFORMATION:
Background
Experience indicates that substantial lumber market declines that
would warrant a market-related contract term addition generally
coincide with substantial economic distress in the wood products
industry. Such economic distress broadly affects community stability,
the ability of the wood products industry to supply construction lumber
and other wood products from domestic sources, and threatens the
existence of wood manufacturing plants needed to meet future demands
for wood products.
The softwood lumber market decline in 1980-1982 resulted in large
numbers of defaults on timber sale contracts. The market-related
contract term addition policy was developed in order to establish
procedures under the Federal Timber Contract Payment Modification Act
or ``Buyout Act'' for extending contract termination dates in response
to severely declining wood products markets. The Buyout Act was
considered an extraordinary measure to respond to a crisis, but also
recognized the need to prevent such a crisis from occurring in the
future. Accordingly, on December 7, 1990, the Department published a
final rule (55 FR 50643) to establish procedures at 36 CFR 223.52 for
extending contract termination dates to avoid another crisis like the
crisis which occurred in the early 1980s due to severe adverse
conditions in the wood products markets. The rule provides that if the
Chief finds that adverse wood products market conditions have resulted
in a drastic reduction in wood product prices and the purchaser of a
qualifying contract makes a written request, additional time may be
added to the contract term.
A finding that a drastic reduction in wood product prices has
occurred constitutes a finding that the substantial overriding public
interest justifies extension of certain timber sale contracts, in
accordance with the National Forest Management Act of 1976 (16 U.S.C.
72a(c)) and existing regulations at 36 CFR 223.115(b).
Since adoption of the rule, a drastic reduction in wood product
prices has occurred in 1991, 1995, 1998, and 2000. As a result, the
Forest Service notified purchasers and, upon the purchasers' written
request, added an additional year to timber sale contract terms for
qualifying contracts.
The rule required the use of various wood product Producer Price
Indices (PPI), prepared by the Department of Labor, Bureau of Labor
Statistics (BLS), to determine whether a drastic reduction in wood
product prices has occurred.
Appearing before the House Appropriations Subcommittee on Interior
and Related Agencies, on April 28, 1992 (Testimony Report number, T-
RCED-92-58), the General Accountability Office (GAO) testified that in
implementing the regulation in 1991, the Forest Service used a formula
with inappropriate data to reach a determination that prices for wood
products from the Pacific Northwest had drastically declined.
Specifically, GAO testified that the Forest Service used a formula
developed with price data that were not adjusted to account for
seasonal fluctuations. GAO noted that if the Forest Service had used
the BLS' seasonally adjusted price data, the formula would not have
indicated a drastic price reduction and would not have triggered
contract extensions on the west side of the Pacific Northwest.
GAO further testified that the BLS advises use of seasonally
adjusted data are designed to eliminate the effects of normal market
fluctuations that occur at about the same time, and in about the same
magnitude, each year, such as price movements resulting from normal
weather patterns and regular production and marketing cycles. GAO
recommended that the Secretary of Agriculture direct the Chief of the
Forest Service to stop using the BLS' unadjusted indices in reaching
determinations that wood product prices have drastically declined.
The Secretary of Agriculture agreed to re-examine the use of the
BLS' unadjusted PPI to determine whether wood product prices showed a
drastic decline. Subsequently, the Forest Service concurred that
seasonally adjusted PPI, adjusted to a constant dollar base, could be
used to determine whether a drastic reduction in wood product prices
has occurred and, therefore, whether a market-related contract term
addition should be granted. However, after December 1994, the BLS
stopped applying seasonal adjustments to the monitored PPI, since they
found insufficient statistical evidence to demonstrate a need to
continue adjusting these indices.
The initial PPI from the BLS used by the Forest Service were from
the commodity series and included lumber indices for Douglas Fir,
Dressed (081101); Southern Pine, Dressed (081102); Other Species,
Dressed (081103); and Hardwood Lumber (0812). However, on May 1, 1998,
the Department published a final rule (63 FR 24110) requiring the use
of Industry Series PPI from the BLS, rather than the previously
required indices in the commodity series. In addition to changing the
index series, the final rule made a number of other technical changes.
The Industry Series PPI used were Western Softwood (SIC 24214), Eastern
Softwood (SIC 24213), and Hardwood Lumber (SIC 24211), which were
considered more representative of the sawmill industry than the prior
indices in the commodity series. The Forest Service also added the
Industry Series Wood Chips (SIC 24215) PPI to measure market changes in
the price of chips and to address the volatility of the wood chip
market. In order to increase the utilization of small diameter
material, many contracts include or consist primarily of chipable
material.
However, after December 2003, the BLS discontinued publishing the
following three lumber PPI: Western Softwood Lumber (SIC 24214),
Eastern Softwood Lumber (SIC 24213), and Hardwood Lumber (SIC 24211),
which were used by the Forest Service. The BLS also changed the Wood
Chips PPI number from SIC 24215 to NAICS
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3211135. In lieu of the three discontinued PPI, the Forest Service
plans to use, effective retroactively to January, 2004, the following
two lumber PPI: Softwood Lumber (0811) and Hardwood Lumber (0812). The
Forest Service will continue to use the Wood Chips PPI ( reference
number NAICS 3211135).
A review of other readily available indices, such as Random Lengths
indices and Western Wood Products Association indices, representing the
same wood product markets shows that indices comparable to these PPI do
not exist. Some regional indices are available; however, the timing,
frequency, and procedure for collection of information for these
indices varies. Some index services or associations use previous month
invoice prices that are provided by their members, while other services
use current month negotiated bid prices or sale prices. Wood product
price indices, prepared nationally and consistently, are not available.
The BLS discontinued publishing seasonally adjusted versions of the
Softwood Lumber (0811) and Hardwood Lumber (0812) PPI after December
2003. None of the three indices to be implemented in this interim final
rule are seasonally adjusted. Each PPI is adjusted to a constant dollar
base by dividing it by the PPI for All Commodities (00000000) to
eliminate changes due to inflation and deflation.
A drastic reduction in wood product prices has occurred when, for 2
or more consecutive quarters after contract award, the applicable
adjusted PPI is less than 85 percent of the average of such adjusted
indices for the 4 highest of the 8 calendar quarters immediately prior
to the qualifying quarter.
Forest supervisors determine which of the PPI that the Forest
Service monitors is used for each contract. The selected PPI is
representative of the predominant species and product, by volume,
included in the contract.
Good Cause Statement
The Forest Service is issuing this interim final rule implementing
the use of three alternative PPI to be able to continue providing
contract term additions due to drastic reductions in wood products
markets, prior to publishing a final rule. By using the three
alternative PPI, the Forest Service will be able to continue providing
market-related contract term additions during drastic reductions in
wood products market prices.
Regulatory Certifications
Regulatory Impact
This interim final rule has been reviewed under USDA procedures and
Executive Order 12866 on Regulatory Planning and Review. OMB has
determined that this is not a significant rule. This rule will not have
an annual effect of $100 million or more on the economy nor adversely
affect productivity, competition, jobs, the environment, public health
or safety, nor State or local governments. This rule will not interfere
with an action taken or planned by another agency nor raise new legal
or policy issues. In short, little or no effect on the national economy
will result from this rule change. This action consists of
administrative changes to regulations affecting timber sale contract
length. The PPI selected reflect the cyclic nature of wood products
markets and help the agency determine whether a drastic decline has
occurred in these particular markets.
Finally, this action will not alter the budgetary impact of
entitlements, grants, user fees, or loan programs or the rights and
obligations of recipients of such programs. Accordingly, this interim
final rule is not subject to OMB review under Executive Order 12866.
Moreover, this interim final rule has been considered in light of
the Regulatory Flexibility Act (5 U.S.C. 610 et seq.), and it is hereby
certified that this action will not have a significant economic impact
on a substantial number of small entities as defined by that act.
Failure to adopt the PPI selected for measuring drastic reductions in
wood product prices may result in both small purchasers and large
purchasers not getting additional time to complete their contracts.
Modifications to timber sale contract price indices have the intended
effect of allowing purchasers additional time to complete contracts
when severe adverse conditions have occurred in the wood products
markets.
Unfunded Mandates Reform
Pursuant to Title II of the Unfunded Mandates Reform Act of 1995,
which the President signed into law on March 22, 1995, the Department
has assessed the effects of this rule on State, local, and tribal
governments and the private sector. This rule does not compel the
expenditure of $100 million or more by any State, local, or tribal
governments or anyone in the private sector. Therefore, a statement
under section 202 of the act is not required.
Environmental Impact
This interim final rule deals with business practices related to
timber sale contracts and, as such, has no direct effect on the amount,
location, or manner of timber offered for purchase. Section 31.1b of
Forest Service Handbook 1909.15 (57 FR 43180; September 18, 1992)
excludes from documentation in an environmental assessment or impact
statement ``rules, regulations, or policies to establish Service-wide
administrative procedures, program processes, or instructions.'' The
Department's preliminary assessment is that this rule falls within this
category of actions and that no extraordinary circumstances exist which
would require preparation of an environmental assessment or
environmental impact statement. A final determination will be made upon
adoption of the final rule.
Controlling Paperwork Burdens on the Public
This interim final rule does not contain any recordkeeping or
reporting requirements or other information collection requirements as
defined in 5 CFR 1320 and, therefore, imposes no paperwork burden on
the public. Accordingly, the review provisions of the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501, et seq.) and implementing
regulations at 5 CFR part 1320 do not apply.
Comments Invited
The Forest Service invites comments on this interim final rule
implementing the use of selected Commodity and Industry Series PPI from
the BLS to apply market-related contract term additions to timber sale
contracts. Comments received will be considered in the development of
the final rule, which will be published in the Federal Register.
List of Subjects in 36 CFR Part 223
Administrative practice and procedure, Exports, Forests and forest
products, Government contracts, National forests, Reporting and
recordkeeping requirements.
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Therefore, for the reasons set forth in the preamble, part 223 of title
36 of the Code of Federal Regulations is amended as follows:
PART 223--SALE AND DISPOSAL OF NATIONAL FOREST SYSTEM TIMBER
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1. The authority citation for part 223 continues to read as follows:
Authority: 90 Stat. 2958, 16 U.S.C. 472a; 98 Stat. 2213; 16
U.S.C. 618, 104 Stat. 714-726, 16 U.S.C. 620-620j, unless otherwise
noted.
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2. Amend Sec. 223.52 by revising paragraph (b)(1)(i) to read as
follows:
Sec. 223.52 Market-related contract term additions.
* * * * *
(b)* * *
(1)* * *
(i) The Forest Service shall monitor and use only the following
indices:
------------------------------------------------------------------------
BLS producer price index Index series Index code
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Hardwood Lumber..................... Commodity............ 0812
Softwood Lumber..................... Commodity............ 0811
Wood Chips.......................... Industry............. 3211135
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* * * * *
Dated: June 17, 2005.
Mark Rey,
Under Secretary, Natural Resources and Environment.
[FR Doc. 05-12811 Filed 6-28-05; 8:45 am]
BILLING CODE 3410-11-P
