Milk in the Appalachian and Southeast Marketing Areas; Notice of Hearing on Proposed Amendments to Tentative Marketing Agreements and Orders, 76718-76724 [05-24543]
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76718
Proposed Rules
Federal Register
Vol. 70, No. 248
Wednesday, December 28, 2005
This section of the FEDERAL REGISTER
contains notices to the public of the proposed
issuance of rules and regulations. The
purpose of these notices is to give interested
persons an opportunity to participate in the
rule making prior to the adoption of the final
rules.
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Parts 1005 and 1007
[Docket No. AO–388–A17 and AO–366–A46;
DA–05–06]
Milk in the Appalachian and Southeast
Marketing Areas; Notice of Hearing on
Proposed Amendments to Tentative
Marketing Agreements and Orders
Agricultural Marketing Service,
USDA.
ACTION: Proposed rule; notice of public
hearing on proposed rulemaking.
AGENCY:
SUMMARY: A public hearing is being held
to consider proposals for the
Appalachian and Southeast Federal
milk orders to amend the current intermarket transportation credit provisions
and to establish new intra-market
transportation credit provisions.
Evidence will be taken at the hearing to
determine whether emergency
marketing conditions exist that would
warrant omission of a recommended
decision under the rules of practice and
procedure (7 CFR 900.12(d)).
DATES: The hearing will convene at 8:30
a.m., on Tuesday, January 10, 2006.
ADDRESSES: The hearing will be held at
the Hyatt Regency Louisville, 320 West
Jefferson Street, Louisville, Kentucky
40202, (502) 581–1234 or (800) 233–
1234.
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FOR FURTHER INFORMATION CONTACT:
Antoinette M. Carter, Marketing
Specialist, USDA/AMS/Dairy Programs,
Order Formulation and Enforcement,
1400 Independence Avenue, SW., STOP
0231, Room 2971, Washington, DC
20250–0231, (202) 690–3465, e-mail
address: Antoinette.Carter@usda.gov.
Persons requiring a sign language
interpreter or other special
accommodations should contact Harold
Friedly, Market Administrator, at (502)
499–0040; email
friedly@malouisville.com before the
hearing begins.
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This
administrative action is governed by the
provisions of sections 556 and 557 of
Title 5 of the United States Code and,
therefore, is excluded from the
requirements of Executive Order 12866.
Notice is hereby given of a public
hearing to be held at the Hyatt Regency
Louisville, 320 West Jefferson Street,
Louisville, Kentucky 40202, (502) 581–
1234, beginning at 8:30 a.m., on
Tuesday, January 10, 2006, with respect
to proposed amendments to the
tentative marketing agreements and to
the orders regulating the handling of
milk in the Appalachian and Southeast
milk marketing areas.
The hearing is called pursuant to the
provisions of the Agricultural Marketing
Agreement Act of 1937, as amended (7
U.S.C. 601–674), and the applicable
rules of practice and procedure
governing the formulation of marketing
agreements and marketing orders (7 CFR
part 900).
The purpose of the hearing is to
receive evidence with respect to the
economic and marketing conditions that
relate to the proposed amendments,
hereinafter set forth, and any
appropriate modifications thereof, to the
tentative marketing agreements and to
the orders.
Actions under the Federal milk order
program are subject to the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.).
This Act seeks to ensure that, within the
statutory authority of a program, the
regulatory and informational
requirements are tailored to the size and
nature of small businesses. For the
purpose of the Act, a dairy farm is a
‘‘small business’’ if it has an annual
gross revenue of less than $750,000, and
a dairy products manufacturer is a
‘‘small business’’ if it has fewer than 500
employees. Most parties subject to a
milk order are considered as a small
business. Accordingly, interested parties
are invited to present evidence on the
probable regulatory and informational
impact of the hearing proposals on
small businesses. Also, parties may
suggest modifications of these proposals
for the purpose of tailoring their
applicability to small businesses.
The amendments to the rules
proposed herein have been reviewed
under Executive Order 12988, Civil
Justice Reform. They are not intended to
have a retroactive effect. If adopted, the
proposed amendments would not
SUPPLEMENTARY INFORMATION:
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preempt any state or local laws,
regulations, or policies, unless they
present an irreconcilable conflict with
this rule.
The Agricultural Marketing
Agreement Act provides that
administrative proceedings must be
exhausted before parties may file suit in
court. Under section 8c(15)(A) of the
Act, any handler subject to an order may
request modification or exemption from
such order by filing with the
Department of Agriculture (Department)
a petition stating that the order, any
provision of the order, or any obligation
imposed in connection with the order is
not in accordance with the law. A
handler is afforded the opportunity for
a hearing on the petition. After a
hearing, the Department would rule on
the petition. The Act provides that the
district court of the United States in any
district in which the handler is an
inhabitant, or has its principal place of
business, has jurisdiction in equity to
review the Department’s ruling on the
petition, provided a bill in equity is
filed not later than 20 days after the date
of the entry of the ruling.
This public hearing is being
conducted to collect evidence for the
record regarding increasing the
maximum assessment rate of the
transportation credit balancing funds of
the Appalachian and Southeast orders.
Evidence will be collected regarding the
proposed establishment of an intramarket transportation credit balancing
fund for movements of milk within the
two marketing areas as well as the
proposed establishment of a mileage
rate factor adjusted for fuel costs for
both inter-market and intra-market
movements of milk. In addition,
evidence will be collected on proposals
seeking to amend the producer milk and
transportation credit provisions which
would limit the amounts paid on
movements of milk within and outside
the Appalachian and Southeast
marketing areas.
Evidence will be taken at the hearing
to determine whether emergency
marketing conditions exist that would
warrant omission of a recommended
decision under the rules of practice and
procedure (7 CFR 900.12(d)) with
respect to any proposed amendments.
Also, since proponents of the proposed
amendments have requested that the
hearing be held on an expedited basis,
under the rules of practice and
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procedure (7 CFR 900.4(a)), it is
determined that less than 15 days notice
is reasonable in the circumstances.
Interested parties who wish to
introduce exhibits should provide the
Presiding Officer at the hearing with (4)
copies of such exhibits for the Official
Record. Also, it would be helpful if
additional copies are available for the
use of other participants at the hearing.
List of Subjects in 7 CFR Parts 1005 and
1007
Milk marketing orders.
PARTS 1005 AND 1007—[AMENDED]
The authority citation for 7 CFR parts
1005 and 1007 continues to read as
follows:
Authority: 7 U.S.C. 601–674.
The proposed amendments, as set
forth below, have not received the
approval of the Department.
Proposed by Dairy Farmers of America,
Inc.
Proposal No. 1
This proposal seeks to increase the
Appalachian and Southeast orders’
maximum assessment rate of the
transportation credit balancing funds.
1. Revise § 1005.81 to read as follows:
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§ 1005.81 Payments to the transportation
credit balancing fund.
(a) On or before the 12th day after the
end of the month (except as provided in
§ 1000.90), each handler operating a
pool plant and each handler specified in
§ 1000.9(c) shall pay to the market
administrator a transportation credit
balancing fund assessment determined
by multiplying the pounds of Class I
producer milk assigned pursuant to
§ 1005.44 by $0.15 per hundredweight
or such lesser amount as the market
administrator deems necessary to
maintain a balance in the fund equal to
the total transportation credits
disbursed during the prior June–January
period, after adjusting the transportation
credits disbursed during the prior June–
January period to reflect any changes in
the current mileage rate versus the
mileage rate(s) in effect during the prior
June–January period. In the event that
during any month of the June–January
period the fund balance is insufficient
to cover the amount of credits that are
due, the assessment should be based
upon the amount of credits that would
have been disbursed had the fund
balance been sufficient.
(b) The market administrator shall
announce publicly on or before the 23rd
day of the month (except as provided in
§ 1000.90) the assessment pursuant to
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paragraph (a) of this section for the
following month.
2. Revise § 1007.81 to read as follows:
§ 1007.81 Payments to the transportation
credit balancing fund.
(a) On or before the 12th day after the
end of the month (except as provided in
§ 1000.90), each handler operating a
pool plant and each handler specified in
§ 1000.9(c) shall pay to the market
administrator a transportation credit
balancing fund assessment determined
by multiplying the pounds of Class I
producer milk assigned pursuant to
§ 1007.44 by $0.20 per hundredweight
or such lesser amount as the market
administrator deems necessary to
maintain a balance in the fund equal to
the total transportation credits
disbursed during the prior June–January
period, after adjusting the transportation
credits disbursed during the prior June–
January period to reflect any changes in
the current mileage rate versus the
mileage rate(s) in effect during the prior
June–January period. In the event that
during any month of the June–January
period the fund balance is insufficient
to cover the amount of credits that are
due, the assessment should be based
upon the amount of credits that would
have been disbursed had the fund
balance been sufficient.
(b) The market administrator shall
announce publicly on or before the 23rd
day of the month (except as provided in
§ 1000.90) the assessment pursuant to
paragraph (a) of this section for the
following month.
Proposal No. 2
This proposal seeks to establish
transportation credit balancing funds on
intra-market movements of milk within
the Appalachian and Southeast
marketing areas.
1. In § 1005.30, the introductory text
is republished, paragraph (a)(6) is
revised, and paragraph (c)(4) is added to
read as follows:
§ 1005.30 Reports of receipts and
utilization.
Each handler shall report monthly so
that the market administrator’s office
receives the report on or before the 7th
day after the end of the month, in detail
and on prescribed forms, as follows:
(a) * * *
(6) Receipts of producer milk
described in § 1005.82(c)(2) or
§ 1005.83(b)(3), including the identity of
the individual producers whose milk is
eligible for a transportation credit
pursuant to the respective paragraphs
and the date that such milk was
received;
*
*
*
*
*
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(c) * * *
(4) With respect to milk for which a
cooperative association is requesting a
transportation credit pursuant to
§ 1005.83, all of the information
required in paragraph (a)(6) of this
section.
*
*
*
*
*
2. In § 1007.30, the introductory text
is republished, paragraph (a)(6) is
revised, and paragraph (c)(4) is added to
read as follows:
§ 1007.30 Reports of receipts and
utilization.
Each handler shall report monthly so
that the market administrator’s office
receives the report on or before the 7th
day after the end of the month, in the
detail and on prescribed forms, as
follows:
(a) * * *
(6) Receipts of producer milk
described in § 1007.82(c)(2) or
§ 1007.83(b)(3), including the identity of
the individual producers whose milk is
eligible for a transportation credit
pursuant to the respective paragraphs
and the date that such milk was
received;
*
*
*
*
*
(c) * * *
(4) With respect to milk for which a
cooperative association is requesting a
transportation credit pursuant to
§ 1007.83, all of the information
required in paragraph (a)(6) of this
section.
*
*
*
*
*
3. Amend § 1005.61 by redesignating
paragraphs (b)(5) and (b)(6) as
paragraphs (b)(6) and (b)(7), and adding
a new paragraph (b)(5) to read as
follows:
§ 1005.61
Computation of uniform prices.
*
*
*
*
*
(b) * * *
(5) Deduct the amount by which the
amount due from the intra-market
transportation credit fund pursuant to
§ 1005.83 exceeds the available balance
in the intra-market transportation credit
fund pursuant to § 1005.80(b);
*
*
*
*
*
4. Amend § 1007.61 by redesignating
paragraph (b)(5) and (b)(6) as paragraphs
(b)(6) and (b)(7), and adding a new
paragraph (b)(5) to read as follows:
§ 1007.61
Computation of uniform prices.
*
*
*
*
*
(b) * * *
(5) Deduct the amount by which the
amount due from the intra-market
transportation credit fund pursuant to
§ 1007.83 exceeds the available balance
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in the intra-market transportation credit
fund pursuant to § 1007.80(b);
*
*
*
*
*
5. Amend § 1005.80 by revising the
section heading and designating the
existing text as paragraph (a) and adding
a new paragraph (b) to read as follows:
§ 1005.80 Transportation Credit Balancing
Fund and Intra-market Transportation
Credit Fund.
(a) * * *
(b) Intra-market Transportation Credit
Fund. The market administrator shall
maintain a separate fund known as the
Intra-market Transportation Credit Fund
into which shall be deposited the
payments made by handlers pursuant to
§ 1005.81(d) and from the producersettlement fund pursuant to
§ 1005.61(b)(5) and out of which shall
be made the payments due handlers
pursuant to § 1005.83. Payments due a
handler shall be offset against payments
due from the handler.
6. Amend § 1007.80 by revising the
section heading, designating the existing
text as paragraph (a) and adding a new
paragraph (b) to read as follows:
§ 1007.80 Transportation Credit Balancing
Fund and Intra-market Transportation
Credit Fund.
(a) * * *
(b) Intra-market Transportation Credit
Fund. The market administrator shall
maintain a separate fund known as the
Intra-market Transportation Credit Fund
into which shall be deposited the
payments made by handlers pursuant to
§ 1007.81(d) and from the producer
settlement fund pursuant to
§ 1007.61(b)(5) and out of which shall
be made the payments due handlers
pursuant to § 1007.83. Payments due a
handler shall be offset against payments
due from the handler.
7. Amend § 1005.81 as proposed in
Proposal 1 by adding new paragraphs
(c), (d), and (e) to read as follows:
§ 1005.81 Payments to the transportation
credit balancing fund and the intra-market
transportation credit fund.
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*
*
*
*
*
(c) The market administrator shall
announce publicly on or before the 23rd
day of the month (except as provided in
§ 1000.90) the fuel cost adjustment
factor as determined in § 1005.84(c) and
the mileage rate factor as determined in
§ 1005.84(f) for the following month.
(d) On or before the 12th day after the
end of the month (except as provided in
§ 1000.90), each handler operating a
pool plant and each handler specified in
§ 1000.9(c) shall pay to the market
administrator an intra-market
transportation credit fund assessment
determined by multiplying the pounds
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of Class I producer milk assigned
pursuant to § 1005.44 by $0.10 per
hundredweight or such lesser amount as
the market administrator deems
necessary to maintain a balance in the
fund equal to the total intra-market
transportation credit fund credits
disbursed during the most recent twomonth period. Except during the first
two months that this provision is
effective, the market administrator shall
estimate the amount of the intra-market
transportation credits that would have
existed in the two months immediately
preceding this provision becoming
effective.
(e) The market administrator shall
announce publicly on or before the 23rd
day of the month (except as provided in
§ 1000.90) the assessment pursuant to
paragraph (d) of this section for the
following month.
8. Amend § 1007.81 as proposed in
Proposal 1 by revising the section
heading and adding new paragraphs (c),
(d), and (e) to read as follows:
§ 1007.81 Payments to the transportation
credit balancing fund and the intra-market
transportation credit fund.
*
*
*
*
*
(c) The market administrator shall
announce publicly on or before the 23rd
day of the month (except as provided in
§ 1000.90) the fuel cost adjustment
factor as determined in § 1007.84(c) and
the mileage rate factor as determined in
§ 1007.84(f) for the following month.
(d) On or before the 12th day after the
end of the month (except as provided in
§ 1000.90), each handler operating a
pool plant and each handler specified in
§ 1000.9(c) shall pay to the market
administrator an intra-market
transportation credit fund assessment
determined by multiplying the pounds
of Class I producer milk assigned
pursuant to § 1007.44 by $0.15 per
hundredweight or such lesser amount as
the market administrator deems
necessary to maintain a balance in the
fund equal to the total intra-market
transportation credit fund credits
disbursed during the most recent two
month period. Except during the first
two months that this provision is
effective, the market administrator shall
estimate the amount of the intra-market
transportation credits that would have
existed in the two months immediately
preceding this provision becoming
effective.
(e) The market administrator shall
announce publicly on or before the 23rd
day of the month (except as provided in
§ 1000.90) the assessment pursuant to
paragraph (d) of this section for the
following month.
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9. Add a new § 1005.83 to read as
follows:
§ 1005.83 Payments from the intra-market
transportation credit fund.
(a) Payments from the intra-market
transportation credit balancing fund to
handlers and cooperative associations
requesting intra-market transportation
credits shall be made as follows:
(1) On or before the 13th day (except
as provided in § 1000.90) after the end
of each month, the market administrator
shall pay to each handler that received
milk directly from producers’ farms as
specified in paragraph (b) of this
section, a preliminary amount
determined pursuant to paragraph (c) of
this section to the extent that funds are
available in the intra-market
transportation credit fund. If an
insufficient balance exists to pay all of
the credits computed pursuant to this
section, the market administrator shall
first reduce the producer-settlement
fund by the lesser of the number of
dollars necessary to pay the credits or
an equal number of dollars that resulted
from the funds collected by the
assessment as described in § 1005.81(d).
If an insufficient balance remains, then
the market administrator shall distribute
the balance available in the intra-market
transportation credit fund by reducing
payments pro rata using the percentage
derived by dividing the balance in the
fund by the total credits that are due for
the month. The amount of credits
resulting from this initial proration shall
be subject to audit adjustment pursuant
to paragraph (a)(2) of this section;
(2) Intra-market transportation credits
paid pursuant to paragraph (a)(1) of this
section shall be subject to final
verification by the market administrator
pursuant to § 1000.77. Adjusted
payments to or from the intra-market
transportation credit fund will remain
subject to the proration established
pursuant to paragraph (a)(1) of this
section; and
(3) In the event that a qualified
cooperative association is the
responsible party for whose account
such milk is received and written
documentation of this fact is provided
to the market administrator pursuant to
§ 1005.30(c)(3) prior to the date payment
is due, the intra-market transportation
credits for such milk computed
pursuant to this section shall be made
to such cooperative association rather
than to the operator of the pool plant at
which the milk was received.
(b) Intra-market transportation credits
shall apply to receipts of producer milk
received at pool distributing plants
directly from the farms of producers
located within the marketing area or
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producers located within the marketing
area of Order 1007 (7 CFR part 1007),
and shall be determined as follows:
(1) Determine for each producer
located within the marketing area or
located within the marketing area of
Federal Order 1007 (7 CFR part 1007)
the pool distributing plant regulated
pursuant to this Order or the pool
distributing plant regulated pursuant to
Federal Order 1007 (7 CFR part 1007)
which is nearest to the producer’s farm.
For purposes of this section, if the two
or more plants are determined to be
equidistant in determining the plant to
which the producer is nearest, the plant
with the highest Class I price shall be
the used as the plant to which the
producer is nearest.
(2) Determine the total pounds of
producer milk physically received from
the farms of producers located within
the marketing area of Order 1007 (7 CFR
part 1007) at each pool distributing
plant;
(3) Subtract from the pounds of milk
described in paragraph (b)(2) of this
section the pounds of bulk
unpasteurized milk transferred or
diverted from the pool plant receiving
the milk if milk was transferred from the
pool distributing plant operator on the
same calendar day that the milk for
which an intra-market transportation
credit may be applicable was received.
For this purpose, the transferred or
diverted milk shall be subtracted from
the most distant load of intra-market
transportation credit eligible milk
received, and then in sequence with the
next most distant load until all of the
transfers or diversions have been offset.
For this purpose, transferred or diverted
milk to be offset against milk for which
the pool plant or the handler described
in § 1005.9(c), respectively, is the
responsible party for receipt of intramarket transportation credit; and,
(4) Multiply the remaining pounds
determined in paragraph (b)(3) of this
section by the producer milk Class I
utilization percentage of all producer
milk received by all pool distributing
plants during the month. The resulting
pounds are the pounds upon which
intra-market transportation credits, as
determined in paragraph (c) of this
section, may be applicable.
(c) Intra-market transportation credits
for pool distributing plant deliveries
shall be computed as follows:
(1) Determine the distance from the
farm of each producer located within
the marketing area or located within the
marketing area of Order 1007 (7 CFR
part 1007) to each pool distributing
plant regulated pursuant to this Order to
which the producer’s milk was actually
delivered.
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(2) Subtract the distance from each
producer’s farm to the producer’s
nearest distributing plant as determined
in paragraph (b)(2) of this section, from
the distance or distances as the case
may be determined in paragraph (c)(1)
of this section.
(3) Multiply the remaining miles for
deliveries to each pool distributing
plant as computed in paragraph (c)(2) of
this section by the mileage rate for the
month computed pursuant to § 1005.84.
(4) Subtract the Class I differential
specified in § 1000.52 applicable at the
producer’s nearest distributing plant as
determined in paragraph (b)(1) of this
section from the Class I differential
specified in § 1000.52 applicable at each
distributing plant at which the
producer’s milk was actually received as
determined in paragraph (c)(1) of this
section.
(5) If the value in paragraph (c)(4) of
this section is greater than or equal to
zero, subtract the result computed in
paragraph (c)(4) of this section from the
result in paragraph (c)(3) of this section.
Multiply the resulting amount by the
number of hundredweights determined
in paragraph (b)(4) of this section. The
resulting amount shall be the intramarket transportation credits for each
such plant of delivery.
(6) If the value in paragraph (c)(4) of
this section is negative, multiply the
amount in paragraph (c)(3) of this
section by the number of
hundredweights determined in
paragraph (b)(4) of this section. The
resulting amount shall be the intramarket transportation credits for each
such plant of delivery.
(d) For purposes of this section, the
distances to be computed shall be
determined by the market administrator
using the shortest available state and/or
Federal highway mileage. Mileage
determinations are subject to redetermination at all times. In the event
a handler requests a re-determination of
the mileage pertaining to any plant or
producer, the market administrator shall
notify the handler of such redetermination within 30 days after the
receipt of such request. Any financial
obligation resulting from a change in
mileage shall not be retroactive for any
periods prior to the re-determination by
the market administrator.
10. Add a new § 1007.83 to read as
follows:
§ 1007.83 Payments from the intra-market
transportation credit fund.
(a) Payments from the intra-market
transportation credit balancing fund to
handlers and cooperative associations
requesting intra-market transportation
credits shall be made as follows:
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(1) On or before the 13th day (except
as provided in § 1000.90) after the end
of each month, the market administrator
shall pay to each handler that received
milk directly from producers’ farms as
specified in paragraph (b) of this
section, a preliminary amount
determined pursuant to paragraph (c) of
this section to the extent that funds are
available in the intra-market
transportation credit fund. If an
insufficient balance exists to pay all of
the credits computed pursuant to this
section, the market administrator shall
first reduce the producer-settlement
fund by the lesser of the number of
dollars necessary to pay the credits or
an equal number of dollars that resulted
from the funds collected by the
assessment as described in § 1007.81(d).
If an insufficient balance remains, then
the market administrator shall distribute
the balance available in the intra-market
transportation credit fund by reducing
payments pro rata using the percentage
derived by dividing the balance in the
fund by the total credits that are due for
the month. The amount of credits
resulting from this initial proration shall
be subject to audit adjustment pursuant
to paragraph (a)(2) of this section;
(2) Intra-market transportation credits
paid pursuant to paragraph (a)(1) of this
section shall be subject to final
verification by the market administrator
pursuant to § 1000.77. Adjusted
payments to or from the intra-market
transportation credit fund will remain
subject to the proration established
pursuant to paragraph (a)(1) of this
section; and
(3) In the event that a qualified
cooperative association is the
responsible party for whose account
such milk is received and written
documentation of this fact is provided
to the market administrator pursuant to
§ 1007.30(c)(3) prior to the date payment
is due, the intra-market transportation
credits for such milk computed
pursuant to this section shall be made
to such cooperative association rather
than to the operator of the pool plant at
which the milk was received.
(b) Intra-market transportation credits
shall apply to receipts of producer milk
received at pool distributing plants
directly from the farms of producers
located within the marketing area or
producers located within the marketing
area of Order 1005 (7 CFR part 1005),
and shall be determined as follows:
(1) Determine for each producer
located within the marketing area or
located within the marketing area of
Federal Order 1005 (7 CFR part 1005)
the pool distributing plant regulated
pursuant to this Order or the pool
distributing plant regulated pursuant to
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Federal Order 1005 (7 CFR part 1005)
which is nearest to the producer’s farm.
For purposes of this section, if the two
or more plants are determined to be
equidistant in determining the plant to
which the producer is nearest, the plant
with the highest Class I price shall be
the used as the plant to which the
producer is nearest.
(2) Determine the total pounds of
producer milk physically received from
the farms of producers located within
the marketing area of Order 1005 at each
pool distributing plant;
(3) Subtract from the pounds of milk
described in paragraph (b)(2) of this
section the pounds of bulk
unpasteurized milk transferred or
diverted from the pool plant receiving
the milk if milk was transferred from the
pool distributing plant operator on the
same calendar day that the milk for
which an intra-market transportation
credit may be applicable was received.
For this purpose, the transferred or
diverted milk shall be subtracted from
the most distant load of intra-market
transportation credit eligible milk
received, and then in sequence with the
next most distant load until all of the
transfers or diversions have been offset.
For this purpose, transferred or diverted
milk to be offset against milk for which
the pool plant or the handler described
in § 1007.9(c), respectively, is the
responsible party for receipt of intramarket transportation credit; and
(4) Multiply the remaining pounds
determined in paragraph (b)(3) of this
section by the producer milk Class I
utilization percentage of all producer
milk received by all pool distributing
plants during the month. The resulting
pounds are the pounds upon which
intra-market transportation credits, as
determined in paragraph (c) of this
section, may be applicable.
(c) Intra-market transportation credits
for pool distributing plant deliveries
shall be computed as follows:
(1) Determine the distance from the
farm of each producer located within
the marketing area or located within the
marketing area of Order 1005 (7 CFR
part 1005) to each pool distributing
plant regulated pursuant to this Order to
which the producer’s milk was actually
delivered.
(2) Subtract the distance from each
producer’s farm to the producer’s
nearest distributing plant as determined
in paragraph (b)(2) of this section from
the distance or distances as the case
may be determined in paragraph (c)(1)
of this section.
(3) Multiply the remaining miles for
deliveries to each pool distributing
plant as computed in paragraph (c)(2) of
VerDate Aug<31>2005
16:13 Dec 27, 2005
Jkt 208001
this section by the mileage rate for the
month computed pursuant to § 1007.84.
(4) Subtract the Class I differential
specified in § 1000.52 applicable at the
producer’s nearest distributing plant as
determined in paragraph (b)(1) of this
section from the Class I differential
specified in § 1000.52 applicable at each
distributing plant at which the
producer’s milk was actually received as
determined in paragraph (c)(1) of this
section.
(5) If the value in paragraph (c)(4) of
this section is greater than or equal to
zero, subtract the result computed in
paragraph (c)(4) of this section from the
result in paragraph (c)(3) of this section.
Multiply the resulting amount by the
number of hundredweights determined
in paragraph (b)(4) of this section. The
resulting amount shall be the intramarket transportation credits for each
such plant of delivery.
(6) If the value in paragraph (c)(4) of
this section is negative, multiply the
amount in paragraph (c)(3) of this
section by the number of
hundredweights determined in
paragraph (b)(4) of this section. The
resulting amount shall be the intramarket transportation credits for each
such plant of delivery.
(d) For purposes of this section, the
distances to be computed shall be
determined by the market administrator
using the shortest available state and/or
Federal highway mileage. Mileage
determinations are subject to redetermination at all times. In the event
a handler requests a re-determination of
the mileage pertaining to any plant or
producer, the market administrator shall
notify the handler of such redetermination within 30 days after the
receipt of such request. Any financial
obligation resulting from a change in
mileage shall not be retroactive for any
periods prior to the re-determination by
the market administrator.
Proposal No. 3
This proposal seeks to calculate the
mileage rate factor using a fuel cost
adjustor for the current transportation
credit balancing funds and the proposed
intra-market transportation credit funds.
1. Amend § 1005.82 by revising
paragraphs (d)(2)(ii) and (d)(3)(iv) to
read as follows:
§ 1005.82 Payments from the
transportation credit balancing fund.
*
*
*
*
*
(d) * * *
(2) * * *
(ii) Multiply the number of miles so
determined by the mileage rate factor for
PO 00000
Frm 00005
Fmt 4702
Sfmt 4702
the month computed pursuant to
§ 1005.84(a)(6);
*
*
*
*
*
(3) * * *
(iv) Multiply the remaining miles so
computed by the mileage rate factor for
the month computed pursuant to
§ 1005.84(a)(6);
*
*
*
*
*
2. Amend § 1007.82 by revising
paragraphs (d)(2)(ii) and (d)(3)(iv) to
read as follows:
§ 1007.82 Payments from the
transportation credit balancing fund.
*
*
*
*
*
(d) * * *
(2) * * *
(ii) Multiply the number of miles so
determined by the mileage rate factor for
the month computed pursuant to
§ 1007.84(a)(6);
*
*
*
*
*
(3) * * *
(iv) Multiply the remaining miles so
computed by the mileage rate factor for
the month computed pursuant to
§ 1007.84(a)(6);
*
*
*
*
*
3. Add a new § 1005.84 to read as
follows:
§ 1005.84 Mileage Rates for the
Transportation Credit Balancing Fund and
Intra-Market Transportation Credit Fund.
The market administrator shall
compute mileage rates each month as
follows:
(a) Compute the simple average for
the most recent four weeks of the Diesel
Price per Gallon as reported by the
Energy Information Administration of
the United States Department of Energy
for the Lower Atlantic and Gulf Coast
Districts combined.
(b) From the result in paragraph (a) in
this section subtract $1.42 per gallon;
(c) Divide the result in paragraph (b)
of this section by 5.5, and round down
to three decimal places to compute the
fuel cost adjustment factor;
(d) Add the result in paragraph (c) of
this section to $1.91;
(e) Divide the result in paragraph (d)
of this section by 4.80;
(f) Round the result in paragraph (e)
of this section down to three decimal
places to compute the mileage rate
factor.
4. Add a new § 1007.84 to read as
follows:
§ 1007.84 Mileage Rates for the
Transportation Credit Balancing Fund and
Intra-Market Transportation Credit Fund.
The market administrator shall
compute mileage rates each month as
follows:
(a) Compute the simple average for
the most recent four weeks of the Diesel
E:\FR\FM\28DEP1.SGM
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Federal Register / Vol. 70, No. 248 / Wednesday, December 28, 2005 / Proposed Rules
Price per Gallon as reported by the
Energy Information Administration of
the United States Department of Energy
for the Lower Atlantic and Gulf Coast
Districts combined.
(b) From the result in paragraph (a) in
this section subtract $1.42 per gallon;
(c) Divide the result in paragraph (b)
of this section by 5.5, and round down
to three decimal places to compute the
fuel cost adjustment factor;
(d) Add the result in paragraph (c) of
this section to $1.91;
(e) Divide the result in paragraph (d)
of this section by 4.80;
(f) Round the result in paragraph (e)
of this section down to three decimal
places to compute the mileage rate
factor.
Proposed by Dean Foods Company
Proposal No. 4
This proposal seeks to reduce a
handler’s ability to utilize transportation
credits to help broaden the number of
producers that touch base.
1. Amend § 1005.82 by:
(a) Revising paragraph (d)(2)(v);
(b) Adding a new paragraph (d)(2)(vi);
(c) Revising paragraph (d)(3)(vii); and
(d) Adding a new paragraph
(d)(3)(viii).
§ 1005.82 Payments from the
transportation credit balancing fund.
sroberts on PROD1PC70 with PROPOSALS
*
*
*
*
*
(d) * * *
(2) * * *
(v) Divide Z% (currently believed to
be close to 30%, may provide evidence
for a higher or lower number) by the
percent of producer milk delivered to
plants other than plants qualified
pursuant to § 1005.7(a) and (b) and
§ 1007.7(a) and (b) of this chapter; if the
result is 100% or greater, then the
percentage applicable in paragraph
(d)(2)(vi) of this section shall be 100%.
(vi) Compute the result of multiplying
the remainder computed in paragraph
(d)(2)(iv) of this section by the
percentage computed in paragraph
(d)(2)(v) of this section and by the
hundredweight of milk described in
paragraph (d)(2) of this section.
(3) * * *
(vii) Divide Z% (currently believed to
be close to 30%, may provide evidence
for a higher or lower number) by the
percent of producer milk delivered to
plants other than plants qualified
pursuant to § 1005.7(a) and (b) and
§ 1007.7(a) and (b) of this chapter; if the
result is 100% or greater, then the
percentage applicable in paragraph
(d)(3)(viii) of this section shall be 100%.
(viii) Compute the result of
multiplying the remainder computed in
VerDate Aug<31>2005
16:13 Dec 27, 2005
Jkt 208001
paragraph (d)(3)(vi) of this section by
the percentage computed in paragraph
(d)(3)(vii) and by the hundredweight of
milk described in paragraph (d)(3) of
this section.
2. Amend § 1007.82 by:
(a) Revising paragraph (d)(2)(v);
(b) Adding a new paragraph (d)(2)(vi);
(c) Revising paragraph (d)(3)(vii); and
(d) Adding a new paragraph
(d)(3)(viii).
§ 1007.82 Payments from the
transportation credit balancing fund.
*
*
*
*
*
(d) * * *
(2) * * *
(v) Divide Z% (currently believed to
be close to 30%, may provide evidence
for a higher or lower number) by the
percent of producer milk delivered to
plants other than plants qualified
pursuant to § 1005.7(a) and (b) of this
chapter; if the result is 100% or greater,
then the percentage applicable in
paragraph (d)(2)(vi) of this section shall
be 100%.
(vi) Compute the result of multiplying
the remainder computed in paragraph
(d)(2)(iv) of this section by the
percentage computed in paragraph
(d)(2)(v) of this section and by the
hundredweight of milk described in
paragraph (d)(2) of this section.
(3) * * *
(vii) Divide Z% (currently believed to
be close to 30%, may provide evidence
for a higher or lower number) by the
percent of producer milk delivered to
plants other than plants qualified
pursuant to § 1005.7(a) and (b) of this
chapter and § 1007.7(a) and (b); if the
result is 100% or greater, then the
percentage applicable in paragraph
(d)(3)(viii) of this section shall be 100%.
(viii) Compute the result of
multiplying the remainder computed in
paragraph (d)(3)(vi) of this section by
the percentage computed in paragraph
(d)(3)(vii) and by the hundredweight of
milk described in paragraph (d)(3) of
this section.
Proposal No. 5
This proposal seeks to reduce the
amount paid to a producer for milk
diverted to an out-of-area plant.
1. Revise § 1005.13(d)(6) to read as
follows:
§ 1005.13
Producer milk.
*
*
*
*
*
(d) * * *
(6) Milk diverted to plants located in
the marketing area described in 7 CFR
parts 1005 and 1007, shall be priced at
the location of the plant to which
diverted; milk diverted to plants located
outside the marketing area described in
PO 00000
Frm 00006
Fmt 4702
Sfmt 4702
76723
either §§ 1005.2 or 1007.2, shall be
priced at the location of the closest pool
distributing plant located in the
marketing area less an adjustment
calculated by multiplying Y (currently
believe this to be close to 4.0, but may
provide evidence for a higher or lower
number) cents per cwt. for each 10 miles
or fraction thereof (by the shortest hard
surface highway as computed by the
market administrator) between the plant
to which the milk was diverted and the
closest pool distributing plant located in
the marketing area; and
*
*
*
*
*
2. Revise § 1005.75 to read as follows:
§ 1005.75 Plant location adjustments for
producer milk and nonpool milk.
For purposes of making payments for
producer milk and nonpool milk:
Except milk diverted to plants located
outside the marketing area described in
either §§ 1005.2 or 1007.2 of this
chapter, a plant location adjustment
shall be determined by subtracting the
Class I price specified in § 1005.51 from
the Class I price at the plant’s location;
for milk diverted to plants located
outside the marketing area described in
either §§ 1005.2 or 1007.2 of this
chapter, a plant location adjustment
shall be determined by subtracting the
Class I price specified in § 1005.51 from
the result of the formula found in
§ 1005.13(d)(6) for such milk. The
difference, plus or minus as the case
may be, shall be used to adjust the
payments require pursuant to
§§ 1005.73 and 1000.76.
1. Revise § 1007.13(d)(6) to read as
follows:
§ 1007.13
Producer milk.
*
*
*
*
*
(d) * * *
(6) Milk diverted to plants located in
the marketing area described in 7 CFR
parts 1005 and 1007, shall be priced at
the location of the plant to which
diverted; milk diverted to plants located
outside the marketing area described in
either §§ 1005.2 or 1007.2, shall be
priced at the location of the closest pool
distributing plant located in the
marketing area less an adjustment
calculated by multiplying Y (currently
believe this to be close to 4.0, but may
provide evidence for a higher or lower
number) cents per cwt. for each 10 miles
or fraction there of (by the shortest hard
surface highway as computed by the
market administrator) between the plant
to which the milk was diverted and the
closest pool distributing plant located in
the marketing area; and
*
*
*
*
*
2. Revise § 1007.75 to read as follows:
E:\FR\FM\28DEP1.SGM
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76724
Federal Register / Vol. 70, No. 248 / Wednesday, December 28, 2005 / Proposed Rules
§ 1007.75 Plant location adjustments for
producer milk and nonpool milk.
For purposes of making payments for
producer milk and nonpool milk:
Except for milk diverted to plants
located outside the marketing area
described in §§ 1005.2 and 1007.2, a
plant location adjustment shall be
determined by subtracting the Class I
price specified in § 1007.51 from the
Class I price at the plant’s location; for
milk diverted to plants located outside
the marketing area described in either
§§ 1005.2 of this chapter or 1007.2, a
plant location adjustment shall be
determined by subtracting the Class I
price specified in § 1007.51 from the
result of the formula found in
§ 1007.13(d)(6) for such milk. The
difference, plus or minus as the case
may be, shall be used to adjust the
payments require pursuant to
§§ 1007.73 and 1000.76.
Proposed by Dairy Programs,
Agricultural Marketing Service
Proposal No. 6
sroberts on PROD1PC70 with PROPOSALS
For all Federal Milk Marketing
Orders, make such changes as may be
necessary to make the entire marketing
agreements and the orders conform with
any amendments thereto that may result
from this hearing.
Copies of this notice of hearing and
the orders may be procured from the
market administrator of each of the
aforesaid marketing areas, or from the
Hearing Clerk, Room 1031, South
Building, United States Department of
Agriculture, Washington, DC 20250, or
may be inspected there.
Copies of the transcript of testimony
taken at the hearing will not be available
for distribution through the Hearing
Clerk’s Office. If you wish to purchase
a copy, arrangements may be made with
the reporter at the hearing.
From the time that a hearing notice is
issued and until the issuance of a final
decision in a proceeding, Department
employees involved in the decisionmaking process are prohibited from
discussing the merits of the hearing
issues on an ex parte basis with any
person having an interest in the
proceeding. For this particular
proceeding, the prohibition applies to
employees in the following
organizational units:
Office of the Secretary of Agriculture.
Office of the Administrator, Agricultural
Marketing Service.
Office of the General Counsel.
Dairy Programs, Agricultural Marketing
Service (Washington office) and the
Offices of all Market Administrators.
VerDate Aug<31>2005
16:13 Dec 27, 2005
Jkt 208001
Procedural matters are not subject to
the above prohibition and may be
discussed at any time.
Dated: December 22, 2005.
Kenneth C. Clayton,
Acting Administrator, Agricultural Marketing
Service.
[FR Doc. 05–24543 Filed 12–23–05; 10:33
am]
BILLING CODE 3410–02–P
NUCLEAR REGULATORY
COMMISSION
10 CFR Part 34
[Docket No. PRM–34–06]
Organization of Agreement States;
Receipt of Petition for Rulemaking
Nuclear Regulatory
Commission.
ACTION: Petition for rulemaking; notice
of receipt.
AGENCY:
SUMMARY: The Nuclear Regulatory
Commission (NRC) is publishing for
public comment a notice of receipt of a
petition for rulemaking, dated
November 3, 2005, which was filed with
the Commission by Barbara Hamrick,
Chair, Organization of Agreement States
(OAS). The petition was docketed by the
NRC on November 16, 2005, and has
been assigned Docket No. PRM–34–06.
The petitioner requests that the NRC
amend its regulations to require that an
individual receive at least 40 hours of
radiation safety training before using
sources of radiation for industrial
radiography, by clarifying the
requirements for at least two individuals
to be present at a temporary job site, and
by clarifying how many individuals are
required to meet surveillance
requirements. The petitioner also
requests that NUREG–1556, Volume 2,
be revised to reflect the performancebased changes in the proposed
amendments.
DATES: Submit comments by March 13,
2006. Comments received after this date
will be considered if it is practical to do
so, but the Commission is able to assure
consideration only for comments
received on or before this date.
ADDRESSES: You may submit comments
by any one of the following methods.
Please include PRM–34–06 in the
subject line of your comments.
Comments on petitions submitted in
writing or in electronic form will be
made available for public inspection.
Because your comments will not be
edited to remove any identifying or
contact information, the NRC cautions
you against including any information
PO 00000
Frm 00007
Fmt 4702
Sfmt 4702
in your submission that you do not want
to be publicly disclosed.
Mail comments to: Secretary, U.S.
Nuclear Regulatory Commission,
Washington, DC 20555–0001, ATTN:
Rulemakings and Adjudications Staff.
E-mail comments to: SECY@nrc.gov. If
you do not receive a reply e-mail
confirming that we have received your
comments, contact us directly at (301)
415–1966. You may also submit
comments via the NRC’s rulemaking
Web site at https://ruleforum.llnl.gov.
Address questions about our rulemaking
Web site to Carol Gallagher (301) 415–
5905; e-mail cag@nrc.gov. Comments
can also be submitted via the Federal
eRulemaking Portal https://
www.regulations.gov.
Hand deliver comments to: 11555
Rockville Pike, Rockville, Maryland
20852, between 7:30 a.m. and 4:15 p.m.
Federal workdays. (Telephone (301)
415–1966).
Fax comments to: Secretary, U.S.
Nuclear Regulatory Commission at (301)
415–1101.
Publicly available documents related
to this petition may be viewed
electronically on the public computers
located at the NRC’s Public Document
Room (PDR), Room O1 F21, One White
Flint North, 11555 Rockville Pike,
Rockville, Maryland. The PDR
reproduction contractor will copy
documents for a fee. Selected
documents, including comments, may
be viewed and downloaded
electronically via the NRC rulemaking
Web site at https://ruleforum.llnl.gov.
Publicly available documents created
or received at the NRC after November
1, 1999, are available electronically at
the NRC’s Electronic Reading Room at
https://www.nrc.gov/reading-rm/
adams.html. From this site, the public
can gain entry into the NRC’s
Agencywide Document Access and
Management System (ADAMS), which
provides text and image files of NRC’s
public documents. If you do not have
access to ADAMS or if there are
problems in accessing the documents
located in ADAMS, contact the PDR
Reference staff at 1–800–397–4209, 301–
415–4737 or by e-mail to pdr@nrc.gov.
FOR FURTHER INFORMATION CONTACT:
Michael T. Lesar, Chief, Rules and
Directives Branch, Division of
Administrative Services, Office of
Administration, U.S. Nuclear Regulatory
Commission, Washington, DC 20555–
0001, Telephone: 301–415–7163 or Toll
Free: 800–368–5642.
SUPPLEMENTARY INFORMATION:
Petitioner’s Interest
The OAS is a non-profit, voluntary,
scientific and professional society
E:\FR\FM\28DEP1.SGM
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]]>Agencies
[Federal Register Volume 70, Number 248 (Wednesday, December 28, 2005)]
[Proposed Rules]
[Pages 76718-76724]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-24543]
========================================================================
Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
========================================================================
Federal Register / Vol. 70, No. 248 / Wednesday, December 28, 2005 /
Proposed Rules
[[Page 76718]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Parts 1005 and 1007
[Docket No. AO-388-A17 and AO-366-A46; DA-05-06]
Milk in the Appalachian and Southeast Marketing Areas; Notice of
Hearing on Proposed Amendments to Tentative Marketing Agreements and
Orders
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule; notice of public hearing on proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: A public hearing is being held to consider proposals for the
Appalachian and Southeast Federal milk orders to amend the current
inter-market transportation credit provisions and to establish new
intra-market transportation credit provisions. Evidence will be taken
at the hearing to determine whether emergency marketing conditions
exist that would warrant omission of a recommended decision under the
rules of practice and procedure (7 CFR 900.12(d)).
DATES: The hearing will convene at 8:30 a.m., on Tuesday, January 10,
2006.
ADDRESSES: The hearing will be held at the Hyatt Regency Louisville,
320 West Jefferson Street, Louisville, Kentucky 40202, (502) 581-1234
or (800) 233-1234.
FOR FURTHER INFORMATION CONTACT: Antoinette M. Carter, Marketing
Specialist, USDA/AMS/Dairy Programs, Order Formulation and Enforcement,
1400 Independence Avenue, SW., STOP 0231, Room 2971, Washington, DC
20250-0231, (202) 690-3465, e-mail address: Antoinette.Carter@usda.gov.
Persons requiring a sign language interpreter or other special
accommodations should contact Harold Friedly, Market Administrator, at
(502) 499-0040; email friedly@malouisville.com before the hearing
begins.
SUPPLEMENTARY INFORMATION: This administrative action is governed by
the provisions of sections 556 and 557 of Title 5 of the United States
Code and, therefore, is excluded from the requirements of Executive
Order 12866.
Notice is hereby given of a public hearing to be held at the Hyatt
Regency Louisville, 320 West Jefferson Street, Louisville, Kentucky
40202, (502) 581-1234, beginning at 8:30 a.m., on Tuesday, January 10,
2006, with respect to proposed amendments to the tentative marketing
agreements and to the orders regulating the handling of milk in the
Appalachian and Southeast milk marketing areas.
The hearing is called pursuant to the provisions of the
Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C. 601-
674), and the applicable rules of practice and procedure governing the
formulation of marketing agreements and marketing orders (7 CFR part
900).
The purpose of the hearing is to receive evidence with respect to
the economic and marketing conditions that relate to the proposed
amendments, hereinafter set forth, and any appropriate modifications
thereof, to the tentative marketing agreements and to the orders.
Actions under the Federal milk order program are subject to the
Regulatory Flexibility Act (5 U.S.C. 601 et seq.). This Act seeks to
ensure that, within the statutory authority of a program, the
regulatory and informational requirements are tailored to the size and
nature of small businesses. For the purpose of the Act, a dairy farm is
a ``small business'' if it has an annual gross revenue of less than
$750,000, and a dairy products manufacturer is a ``small business'' if
it has fewer than 500 employees. Most parties subject to a milk order
are considered as a small business. Accordingly, interested parties are
invited to present evidence on the probable regulatory and
informational impact of the hearing proposals on small businesses.
Also, parties may suggest modifications of these proposals for the
purpose of tailoring their applicability to small businesses.
The amendments to the rules proposed herein have been reviewed
under Executive Order 12988, Civil Justice Reform. They are not
intended to have a retroactive effect. If adopted, the proposed
amendments would not preempt any state or local laws, regulations, or
policies, unless they present an irreconcilable conflict with this
rule.
The Agricultural Marketing Agreement Act provides that
administrative proceedings must be exhausted before parties may file
suit in court. Under section 8c(15)(A) of the Act, any handler subject
to an order may request modification or exemption from such order by
filing with the Department of Agriculture (Department) a petition
stating that the order, any provision of the order, or any obligation
imposed in connection with the order is not in accordance with the law.
A handler is afforded the opportunity for a hearing on the petition.
After a hearing, the Department would rule on the petition. The Act
provides that the district court of the United States in any district
in which the handler is an inhabitant, or has its principal place of
business, has jurisdiction in equity to review the Department's ruling
on the petition, provided a bill in equity is filed not later than 20
days after the date of the entry of the ruling.
This public hearing is being conducted to collect evidence for the
record regarding increasing the maximum assessment rate of the
transportation credit balancing funds of the Appalachian and Southeast
orders. Evidence will be collected regarding the proposed establishment
of an intra-market transportation credit balancing fund for movements
of milk within the two marketing areas as well as the proposed
establishment of a mileage rate factor adjusted for fuel costs for both
inter-market and intra-market movements of milk. In addition, evidence
will be collected on proposals seeking to amend the producer milk and
transportation credit provisions which would limit the amounts paid on
movements of milk within and outside the Appalachian and Southeast
marketing areas.
Evidence will be taken at the hearing to determine whether
emergency marketing conditions exist that would warrant omission of a
recommended decision under the rules of practice and procedure (7 CFR
900.12(d)) with respect to any proposed amendments. Also, since
proponents of the proposed amendments have requested that the hearing
be held on an expedited basis, under the rules of practice and
[[Page 76719]]
procedure (7 CFR 900.4(a)), it is determined that less than 15 days
notice is reasonable in the circumstances.
Interested parties who wish to introduce exhibits should provide
the Presiding Officer at the hearing with (4) copies of such exhibits
for the Official Record. Also, it would be helpful if additional copies
are available for the use of other participants at the hearing.
List of Subjects in 7 CFR Parts 1005 and 1007
Milk marketing orders.
PARTS 1005 AND 1007--[AMENDED]
The authority citation for 7 CFR parts 1005 and 1007 continues to
read as follows:
Authority: 7 U.S.C. 601-674.
The proposed amendments, as set forth below, have not received the
approval of the Department.
Proposed by Dairy Farmers of America, Inc.
Proposal No. 1
This proposal seeks to increase the Appalachian and Southeast
orders' maximum assessment rate of the transportation credit balancing
funds.
1. Revise Sec. 1005.81 to read as follows:
Sec. 1005.81 Payments to the transportation credit balancing fund.
(a) On or before the 12th day after the end of the month (except as
provided in Sec. 1000.90), each handler operating a pool plant and
each handler specified in Sec. 1000.9(c) shall pay to the market
administrator a transportation credit balancing fund assessment
determined by multiplying the pounds of Class I producer milk assigned
pursuant to Sec. 1005.44 by $0.15 per hundredweight or such lesser
amount as the market administrator deems necessary to maintain a
balance in the fund equal to the total transportation credits disbursed
during the prior June-January period, after adjusting the
transportation credits disbursed during the prior June-January period
to reflect any changes in the current mileage rate versus the mileage
rate(s) in effect during the prior June-January period. In the event
that during any month of the June-January period the fund balance is
insufficient to cover the amount of credits that are due, the
assessment should be based upon the amount of credits that would have
been disbursed had the fund balance been sufficient.
(b) The market administrator shall announce publicly on or before
the 23rd day of the month (except as provided in Sec. 1000.90) the
assessment pursuant to paragraph (a) of this section for the following
month.
2. Revise Sec. 1007.81 to read as follows:
Sec. 1007.81 Payments to the transportation credit balancing fund.
(a) On or before the 12th day after the end of the month (except as
provided in Sec. 1000.90), each handler operating a pool plant and
each handler specified in Sec. 1000.9(c) shall pay to the market
administrator a transportation credit balancing fund assessment
determined by multiplying the pounds of Class I producer milk assigned
pursuant to Sec. 1007.44 by $0.20 per hundredweight or such lesser
amount as the market administrator deems necessary to maintain a
balance in the fund equal to the total transportation credits disbursed
during the prior June-January period, after adjusting the
transportation credits disbursed during the prior June-January period
to reflect any changes in the current mileage rate versus the mileage
rate(s) in effect during the prior June-January period. In the event
that during any month of the June-January period the fund balance is
insufficient to cover the amount of credits that are due, the
assessment should be based upon the amount of credits that would have
been disbursed had the fund balance been sufficient.
(b) The market administrator shall announce publicly on or before
the 23rd day of the month (except as provided in Sec. 1000.90) the
assessment pursuant to paragraph (a) of this section for the following
month.
Proposal No. 2
This proposal seeks to establish transportation credit balancing
funds on intra-market movements of milk within the Appalachian and
Southeast marketing areas.
1. In Sec. 1005.30, the introductory text is republished,
paragraph (a)(6) is revised, and paragraph (c)(4) is added to read as
follows:
Sec. 1005.30 Reports of receipts and utilization.
Each handler shall report monthly so that the market
administrator's office receives the report on or before the 7th day
after the end of the month, in detail and on prescribed forms, as
follows:
(a) * * *
(6) Receipts of producer milk described in Sec. 1005.82(c)(2) or
Sec. 1005.83(b)(3), including the identity of the individual producers
whose milk is eligible for a transportation credit pursuant to the
respective paragraphs and the date that such milk was received;
* * * * *
(c) * * *
(4) With respect to milk for which a cooperative association is
requesting a transportation credit pursuant to Sec. 1005.83, all of
the information required in paragraph (a)(6) of this section.
* * * * *
2. In Sec. 1007.30, the introductory text is republished,
paragraph (a)(6) is revised, and paragraph (c)(4) is added to read as
follows:
Sec. 1007.30 Reports of receipts and utilization.
Each handler shall report monthly so that the market
administrator's office receives the report on or before the 7th day
after the end of the month, in the detail and on prescribed forms, as
follows:
(a) * * *
(6) Receipts of producer milk described in Sec. 1007.82(c)(2) or
Sec. 1007.83(b)(3), including the identity of the individual producers
whose milk is eligible for a transportation credit pursuant to the
respective paragraphs and the date that such milk was received;
* * * * *
(c) * * *
(4) With respect to milk for which a cooperative association is
requesting a transportation credit pursuant to Sec. 1007.83, all of
the information required in paragraph (a)(6) of this section.
* * * * *
3. Amend Sec. 1005.61 by redesignating paragraphs (b)(5) and
(b)(6) as paragraphs (b)(6) and (b)(7), and adding a new paragraph
(b)(5) to read as follows:
Sec. 1005.61 Computation of uniform prices.
* * * * *
(b) * * *
(5) Deduct the amount by which the amount due from the intra-market
transportation credit fund pursuant to Sec. 1005.83 exceeds the
available balance in the intra-market transportation credit fund
pursuant to Sec. 1005.80(b);
* * * * *
4. Amend Sec. 1007.61 by redesignating paragraph (b)(5) and (b)(6)
as paragraphs (b)(6) and (b)(7), and adding a new paragraph (b)(5) to
read as follows:
Sec. 1007.61 Computation of uniform prices.
* * * * *
(b) * * *
(5) Deduct the amount by which the amount due from the intra-market
transportation credit fund pursuant to Sec. 1007.83 exceeds the
available balance
[[Page 76720]]
in the intra-market transportation credit fund pursuant to Sec.
1007.80(b);
* * * * *
5. Amend Sec. 1005.80 by revising the section heading and
designating the existing text as paragraph (a) and adding a new
paragraph (b) to read as follows:
Sec. 1005.80 Transportation Credit Balancing Fund and Intra-market
Transportation Credit Fund.
(a) * * *
(b) Intra-market Transportation Credit Fund. The market
administrator shall maintain a separate fund known as the Intra-market
Transportation Credit Fund into which shall be deposited the payments
made by handlers pursuant to Sec. 1005.81(d) and from the producer-
settlement fund pursuant to Sec. 1005.61(b)(5) and out of which shall
be made the payments due handlers pursuant to Sec. 1005.83. Payments
due a handler shall be offset against payments due from the handler.
6. Amend Sec. 1007.80 by revising the section heading, designating
the existing text as paragraph (a) and adding a new paragraph (b) to
read as follows:
Sec. 1007.80 Transportation Credit Balancing Fund and Intra-market
Transportation Credit Fund.
(a) * * *
(b) Intra-market Transportation Credit Fund. The market
administrator shall maintain a separate fund known as the Intra-market
Transportation Credit Fund into which shall be deposited the payments
made by handlers pursuant to Sec. 1007.81(d) and from the producer
settlement fund pursuant to Sec. 1007.61(b)(5) and out of which shall
be made the payments due handlers pursuant to Sec. 1007.83. Payments
due a handler shall be offset against payments due from the handler.
7. Amend Sec. 1005.81 as proposed in Proposal 1 by adding new
paragraphs (c), (d), and (e) to read as follows:
Sec. 1005.81 Payments to the transportation credit balancing fund and
the intra-market transportation credit fund.
* * * * *
(c) The market administrator shall announce publicly on or before
the 23rd day of the month (except as provided in Sec. 1000.90) the
fuel cost adjustment factor as determined in Sec. 1005.84(c) and the
mileage rate factor as determined in Sec. 1005.84(f) for the following
month.
(d) On or before the 12th day after the end of the month (except as
provided in Sec. 1000.90), each handler operating a pool plant and
each handler specified in Sec. 1000.9(c) shall pay to the market
administrator an intra-market transportation credit fund assessment
determined by multiplying the pounds of Class I producer milk assigned
pursuant to Sec. 1005.44 by $0.10 per hundredweight or such lesser
amount as the market administrator deems necessary to maintain a
balance in the fund equal to the total intra-market transportation
credit fund credits disbursed during the most recent two-month period.
Except during the first two months that this provision is effective,
the market administrator shall estimate the amount of the intra-market
transportation credits that would have existed in the two months
immediately preceding this provision becoming effective.
(e) The market administrator shall announce publicly on or before
the 23rd day of the month (except as provided in Sec. 1000.90) the
assessment pursuant to paragraph (d) of this section for the following
month.
8. Amend Sec. 1007.81 as proposed in Proposal 1 by revising the
section heading and adding new paragraphs (c), (d), and (e) to read as
follows:
Sec. 1007.81 Payments to the transportation credit balancing fund and
the intra-market transportation credit fund.
* * * * *
(c) The market administrator shall announce publicly on or before
the 23rd day of the month (except as provided in Sec. 1000.90) the
fuel cost adjustment factor as determined in Sec. 1007.84(c) and the
mileage rate factor as determined in Sec. 1007.84(f) for the following
month.
(d) On or before the 12th day after the end of the month (except as
provided in Sec. 1000.90), each handler operating a pool plant and
each handler specified in Sec. 1000.9(c) shall pay to the market
administrator an intra-market transportation credit fund assessment
determined by multiplying the pounds of Class I producer milk assigned
pursuant to Sec. 1007.44 by $0.15 per hundredweight or such lesser
amount as the market administrator deems necessary to maintain a
balance in the fund equal to the total intra-market transportation
credit fund credits disbursed during the most recent two month period.
Except during the first two months that this provision is effective,
the market administrator shall estimate the amount of the intra-market
transportation credits that would have existed in the two months
immediately preceding this provision becoming effective.
(e) The market administrator shall announce publicly on or before
the 23rd day of the month (except as provided in Sec. 1000.90) the
assessment pursuant to paragraph (d) of this section for the following
month.
9. Add a new Sec. 1005.83 to read as follows:
Sec. 1005.83 Payments from the intra-market transportation credit
fund.
(a) Payments from the intra-market transportation credit balancing
fund to handlers and cooperative associations requesting intra-market
transportation credits shall be made as follows:
(1) On or before the 13th day (except as provided in Sec. 1000.90)
after the end of each month, the market administrator shall pay to each
handler that received milk directly from producers' farms as specified
in paragraph (b) of this section, a preliminary amount determined
pursuant to paragraph (c) of this section to the extent that funds are
available in the intra-market transportation credit fund. If an
insufficient balance exists to pay all of the credits computed pursuant
to this section, the market administrator shall first reduce the
producer-settlement fund by the lesser of the number of dollars
necessary to pay the credits or an equal number of dollars that
resulted from the funds collected by the assessment as described in
Sec. 1005.81(d). If an insufficient balance remains, then the market
administrator shall distribute the balance available in the intra-
market transportation credit fund by reducing payments pro rata using
the percentage derived by dividing the balance in the fund by the total
credits that are due for the month. The amount of credits resulting
from this initial proration shall be subject to audit adjustment
pursuant to paragraph (a)(2) of this section;
(2) Intra-market transportation credits paid pursuant to paragraph
(a)(1) of this section shall be subject to final verification by the
market administrator pursuant to Sec. 1000.77. Adjusted payments to or
from the intra-market transportation credit fund will remain subject to
the proration established pursuant to paragraph (a)(1) of this section;
and
(3) In the event that a qualified cooperative association is the
responsible party for whose account such milk is received and written
documentation of this fact is provided to the market administrator
pursuant to Sec. 1005.30(c)(3) prior to the date payment is due, the
intra-market transportation credits for such milk computed pursuant to
this section shall be made to such cooperative association rather than
to the operator of the pool plant at which the milk was received.
(b) Intra-market transportation credits shall apply to receipts of
producer milk received at pool distributing plants directly from the
farms of producers located within the marketing area or
[[Page 76721]]
producers located within the marketing area of Order 1007 (7 CFR part
1007), and shall be determined as follows:
(1) Determine for each producer located within the marketing area
or located within the marketing area of Federal Order 1007 (7 CFR part
1007) the pool distributing plant regulated pursuant to this Order or
the pool distributing plant regulated pursuant to Federal Order 1007 (7
CFR part 1007) which is nearest to the producer's farm. For purposes of
this section, if the two or more plants are determined to be
equidistant in determining the plant to which the producer is nearest,
the plant with the highest Class I price shall be the used as the plant
to which the producer is nearest.
(2) Determine the total pounds of producer milk physically received
from the farms of producers located within the marketing area of Order
1007 (7 CFR part 1007) at each pool distributing plant;
(3) Subtract from the pounds of milk described in paragraph (b)(2)
of this section the pounds of bulk unpasteurized milk transferred or
diverted from the pool plant receiving the milk if milk was transferred
from the pool distributing plant operator on the same calendar day that
the milk for which an intra-market transportation credit may be
applicable was received. For this purpose, the transferred or diverted
milk shall be subtracted from the most distant load of intra-market
transportation credit eligible milk received, and then in sequence with
the next most distant load until all of the transfers or diversions
have been offset. For this purpose, transferred or diverted milk to be
offset against milk for which the pool plant or the handler described
in Sec. 1005.9(c), respectively, is the responsible party for receipt
of intra-market transportation credit; and,
(4) Multiply the remaining pounds determined in paragraph (b)(3) of
this section by the producer milk Class I utilization percentage of all
producer milk received by all pool distributing plants during the
month. The resulting pounds are the pounds upon which intra-market
transportation credits, as determined in paragraph (c) of this section,
may be applicable.
(c) Intra-market transportation credits for pool distributing plant
deliveries shall be computed as follows:
(1) Determine the distance from the farm of each producer located
within the marketing area or located within the marketing area of Order
1007 (7 CFR part 1007) to each pool distributing plant regulated
pursuant to this Order to which the producer's milk was actually
delivered.
(2) Subtract the distance from each producer's farm to the
producer's nearest distributing plant as determined in paragraph (b)(2)
of this section, from the distance or distances as the case may be
determined in paragraph (c)(1) of this section.
(3) Multiply the remaining miles for deliveries to each pool
distributing plant as computed in paragraph (c)(2) of this section by
the mileage rate for the month computed pursuant to Sec. 1005.84.
(4) Subtract the Class I differential specified in Sec. 1000.52
applicable at the producer's nearest distributing plant as determined
in paragraph (b)(1) of this section from the Class I differential
specified in Sec. 1000.52 applicable at each distributing plant at
which the producer's milk was actually received as determined in
paragraph (c)(1) of this section.
(5) If the value in paragraph (c)(4) of this section is greater
than or equal to zero, subtract the result computed in paragraph (c)(4)
of this section from the result in paragraph (c)(3) of this section.
Multiply the resulting amount by the number of hundredweights
determined in paragraph (b)(4) of this section. The resulting amount
shall be the intra-market transportation credits for each such plant of
delivery.
(6) If the value in paragraph (c)(4) of this section is negative,
multiply the amount in paragraph (c)(3) of this section by the number
of hundredweights determined in paragraph (b)(4) of this section. The
resulting amount shall be the intra-market transportation credits for
each such plant of delivery.
(d) For purposes of this section, the distances to be computed
shall be determined by the market administrator using the shortest
available state and/or Federal highway mileage. Mileage determinations
are subject to re-determination at all times. In the event a handler
requests a re-determination of the mileage pertaining to any plant or
producer, the market administrator shall notify the handler of such re-
determination within 30 days after the receipt of such request. Any
financial obligation resulting from a change in mileage shall not be
retroactive for any periods prior to the re-determination by the market
administrator.
10. Add a new Sec. 1007.83 to read as follows:
Sec. 1007.83 Payments from the intra-market transportation credit
fund.
(a) Payments from the intra-market transportation credit balancing
fund to handlers and cooperative associations requesting intra-market
transportation credits shall be made as follows:
(1) On or before the 13th day (except as provided in Sec. 1000.90)
after the end of each month, the market administrator shall pay to each
handler that received milk directly from producers' farms as specified
in paragraph (b) of this section, a preliminary amount determined
pursuant to paragraph (c) of this section to the extent that funds are
available in the intra-market transportation credit fund. If an
insufficient balance exists to pay all of the credits computed pursuant
to this section, the market administrator shall first reduce the
producer-settlement fund by the lesser of the number of dollars
necessary to pay the credits or an equal number of dollars that
resulted from the funds collected by the assessment as described in
Sec. 1007.81(d). If an insufficient balance remains, then the market
administrator shall distribute the balance available in the intra-
market transportation credit fund by reducing payments pro rata using
the percentage derived by dividing the balance in the fund by the total
credits that are due for the month. The amount of credits resulting
from this initial proration shall be subject to audit adjustment
pursuant to paragraph (a)(2) of this section;
(2) Intra-market transportation credits paid pursuant to paragraph
(a)(1) of this section shall be subject to final verification by the
market administrator pursuant to Sec. 1000.77. Adjusted payments to or
from the intra-market transportation credit fund will remain subject to
the proration established pursuant to paragraph (a)(1) of this section;
and
(3) In the event that a qualified cooperative association is the
responsible party for whose account such milk is received and written
documentation of this fact is provided to the market administrator
pursuant to Sec. 1007.30(c)(3) prior to the date payment is due, the
intra-market transportation credits for such milk computed pursuant to
this section shall be made to such cooperative association rather than
to the operator of the pool plant at which the milk was received.
(b) Intra-market transportation credits shall apply to receipts of
producer milk received at pool distributing plants directly from the
farms of producers located within the marketing area or producers
located within the marketing area of Order 1005 (7 CFR part 1005), and
shall be determined as follows:
(1) Determine for each producer located within the marketing area
or located within the marketing area of Federal Order 1005 (7 CFR part
1005) the pool distributing plant regulated pursuant to this Order or
the pool distributing plant regulated pursuant to
[[Page 76722]]
Federal Order 1005 (7 CFR part 1005) which is nearest to the producer's
farm. For purposes of this section, if the two or more plants are
determined to be equidistant in determining the plant to which the
producer is nearest, the plant with the highest Class I price shall be
the used as the plant to which the producer is nearest.
(2) Determine the total pounds of producer milk physically received
from the farms of producers located within the marketing area of Order
1005 at each pool distributing plant;
(3) Subtract from the pounds of milk described in paragraph (b)(2)
of this section the pounds of bulk unpasteurized milk transferred or
diverted from the pool plant receiving the milk if milk was transferred
from the pool distributing plant operator on the same calendar day that
the milk for which an intra-market transportation credit may be
applicable was received. For this purpose, the transferred or diverted
milk shall be subtracted from the most distant load of intra-market
transportation credit eligible milk received, and then in sequence with
the next most distant load until all of the transfers or diversions
have been offset. For this purpose, transferred or diverted milk to be
offset against milk for which the pool plant or the handler described
in Sec. 1007.9(c), respectively, is the responsible party for receipt
of intra-market transportation credit; and
(4) Multiply the remaining pounds determined in paragraph (b)(3) of
this section by the producer milk Class I utilization percentage of all
producer milk received by all pool distributing plants during the
month. The resulting pounds are the pounds upon which intra-market
transportation credits, as determined in paragraph (c) of this section,
may be applicable.
(c) Intra-market transportation credits for pool distributing plant
deliveries shall be computed as follows:
(1) Determine the distance from the farm of each producer located
within the marketing area or located within the marketing area of Order
1005 (7 CFR part 1005) to each pool distributing plant regulated
pursuant to this Order to which the producer's milk was actually
delivered.
(2) Subtract the distance from each producer's farm to the
producer's nearest distributing plant as determined in paragraph (b)(2)
of this section from the distance or distances as the case may be
determined in paragraph (c)(1) of this section.
(3) Multiply the remaining miles for deliveries to each pool
distributing plant as computed in paragraph (c)(2) of this section by
the mileage rate for the month computed pursuant to Sec. 1007.84.
(4) Subtract the Class I differential specified in Sec. 1000.52
applicable at the producer's nearest distributing plant as determined
in paragraph (b)(1) of this section from the Class I differential
specified in Sec. 1000.52 applicable at each distributing plant at
which the producer's milk was actually received as determined in
paragraph (c)(1) of this section.
(5) If the value in paragraph (c)(4) of this section is greater
than or equal to zero, subtract the result computed in paragraph (c)(4)
of this section from the result in paragraph (c)(3) of this section.
Multiply the resulting amount by the number of hundredweights
determined in paragraph (b)(4) of this section. The resulting amount
shall be the intra-market transportation credits for each such plant of
delivery.
(6) If the value in paragraph (c)(4) of this section is negative,
multiply the amount in paragraph (c)(3) of this section by the number
of hundredweights determined in paragraph (b)(4) of this section. The
resulting amount shall be the intra-market transportation credits for
each such plant of delivery.
(d) For purposes of this section, the distances to be computed
shall be determined by the market administrator using the shortest
available state and/or Federal highway mileage. Mileage determinations
are subject to re-determination at all times. In the event a handler
requests a re-determination of the mileage pertaining to any plant or
producer, the market administrator shall notify the handler of such re-
determination within 30 days after the receipt of such request. Any
financial obligation resulting from a change in mileage shall not be
retroactive for any periods prior to the re-determination by the market
administrator.
Proposal No. 3
This proposal seeks to calculate the mileage rate factor using a
fuel cost adjustor for the current transportation credit balancing
funds and the proposed intra-market transportation credit funds.
1. Amend Sec. 1005.82 by revising paragraphs (d)(2)(ii) and
(d)(3)(iv) to read as follows:
Sec. 1005.82 Payments from the transportation credit balancing fund.
* * * * *
(d) * * *
(2) * * *
(ii) Multiply the number of miles so determined by the mileage rate
factor for the month computed pursuant to Sec. 1005.84(a)(6);
* * * * *
(3) * * *
(iv) Multiply the remaining miles so computed by the mileage rate
factor for the month computed pursuant to Sec. 1005.84(a)(6);
* * * * *
2. Amend Sec. 1007.82 by revising paragraphs (d)(2)(ii) and
(d)(3)(iv) to read as follows:
Sec. 1007.82 Payments from the transportation credit balancing fund.
* * * * *
(d) * * *
(2) * * *
(ii) Multiply the number of miles so determined by the mileage rate
factor for the month computed pursuant to Sec. 1007.84(a)(6);
* * * * *
(3) * * *
(iv) Multiply the remaining miles so computed by the mileage rate
factor for the month computed pursuant to Sec. 1007.84(a)(6);
* * * * *
3. Add a new Sec. 1005.84 to read as follows:
Sec. 1005.84 Mileage Rates for the Transportation Credit Balancing
Fund and Intra-Market Transportation Credit Fund.
The market administrator shall compute mileage rates each month as
follows:
(a) Compute the simple average for the most recent four weeks of
the Diesel Price per Gallon as reported by the Energy Information
Administration of the United States Department of Energy for the Lower
Atlantic and Gulf Coast Districts combined.
(b) From the result in paragraph (a) in this section subtract $1.42
per gallon;
(c) Divide the result in paragraph (b) of this section by 5.5, and
round down to three decimal places to compute the fuel cost adjustment
factor;
(d) Add the result in paragraph (c) of this section to $1.91;
(e) Divide the result in paragraph (d) of this section by 4.80;
(f) Round the result in paragraph (e) of this section down to three
decimal places to compute the mileage rate factor.
4. Add a new Sec. 1007.84 to read as follows:
Sec. 1007.84 Mileage Rates for the Transportation Credit Balancing
Fund and Intra-Market Transportation Credit Fund.
The market administrator shall compute mileage rates each month as
follows:
(a) Compute the simple average for the most recent four weeks of
the Diesel
[[Page 76723]]
Price per Gallon as reported by the Energy Information Administration
of the United States Department of Energy for the Lower Atlantic and
Gulf Coast Districts combined.
(b) From the result in paragraph (a) in this section subtract $1.42
per gallon;
(c) Divide the result in paragraph (b) of this section by 5.5, and
round down to three decimal places to compute the fuel cost adjustment
factor;
(d) Add the result in paragraph (c) of this section to $1.91;
(e) Divide the result in paragraph (d) of this section by 4.80;
(f) Round the result in paragraph (e) of this section down to three
decimal places to compute the mileage rate factor.
Proposed by Dean Foods Company
Proposal No. 4
This proposal seeks to reduce a handler's ability to utilize
transportation credits to help broaden the number of producers that
touch base.
1. Amend Sec. 1005.82 by:
(a) Revising paragraph (d)(2)(v);
(b) Adding a new paragraph (d)(2)(vi);
(c) Revising paragraph (d)(3)(vii); and
(d) Adding a new paragraph (d)(3)(viii).
Sec. 1005.82 Payments from the transportation credit balancing fund.
* * * * *
(d) * * *
(2) * * *
(v) Divide Z% (currently believed to be close to 30%, may provide
evidence for a higher or lower number) by the percent of producer milk
delivered to plants other than plants qualified pursuant to Sec.
1005.7(a) and (b) and Sec. 1007.7(a) and (b) of this chapter; if the
result is 100% or greater, then the percentage applicable in paragraph
(d)(2)(vi) of this section shall be 100%.
(vi) Compute the result of multiplying the remainder computed in
paragraph (d)(2)(iv) of this section by the percentage computed in
paragraph (d)(2)(v) of this section and by the hundredweight of milk
described in paragraph (d)(2) of this section.
(3) * * *
(vii) Divide Z% (currently believed to be close to 30%, may provide
evidence for a higher or lower number) by the percent of producer milk
delivered to plants other than plants qualified pursuant to Sec.
1005.7(a) and (b) and Sec. 1007.7(a) and (b) of this chapter; if the
result is 100% or greater, then the percentage applicable in paragraph
(d)(3)(viii) of this section shall be 100%.
(viii) Compute the result of multiplying the remainder computed in
paragraph (d)(3)(vi) of this section by the percentage computed in
paragraph (d)(3)(vii) and by the hundredweight of milk described in
paragraph (d)(3) of this section.
2. Amend Sec. 1007.82 by:
(a) Revising paragraph (d)(2)(v);
(b) Adding a new paragraph (d)(2)(vi);
(c) Revising paragraph (d)(3)(vii); and
(d) Adding a new paragraph (d)(3)(viii).
Sec. 1007.82 Payments from the transportation credit balancing fund.
* * * * *
(d) * * *
(2) * * *
(v) Divide Z% (currently believed to be close to 30%, may provide
evidence for a higher or lower number) by the percent of producer milk
delivered to plants other than plants qualified pursuant to Sec.
1005.7(a) and (b) of this chapter; if the result is 100% or greater,
then the percentage applicable in paragraph (d)(2)(vi) of this section
shall be 100%.
(vi) Compute the result of multiplying the remainder computed in
paragraph (d)(2)(iv) of this section by the percentage computed in
paragraph (d)(2)(v) of this section and by the hundredweight of milk
described in paragraph (d)(2) of this section.
(3) * * *
(vii) Divide Z% (currently believed to be close to 30%, may provide
evidence for a higher or lower number) by the percent of producer milk
delivered to plants other than plants qualified pursuant to Sec.
1005.7(a) and (b) of this chapter and Sec. 1007.7(a) and (b); if the
result is 100% or greater, then the percentage applicable in paragraph
(d)(3)(viii) of this section shall be 100%.
(viii) Compute the result of multiplying the remainder computed in
paragraph (d)(3)(vi) of this section by the percentage computed in
paragraph (d)(3)(vii) and by the hundredweight of milk described in
paragraph (d)(3) of this section.
Proposal No. 5
This proposal seeks to reduce the amount paid to a producer for
milk diverted to an out-of-area plant.
1. Revise Sec. 1005.13(d)(6) to read as follows:
Sec. 1005.13 Producer milk.
* * * * *
(d) * * *
(6) Milk diverted to plants located in the marketing area described
in 7 CFR parts 1005 and 1007, shall be priced at the location of the
plant to which diverted; milk diverted to plants located outside the
marketing area described in either Sec. Sec. 1005.2 or 1007.2, shall
be priced at the location of the closest pool distributing plant
located in the marketing area less an adjustment calculated by
multiplying Y (currently believe this to be close to 4.0, but may
provide evidence for a higher or lower number) cents per cwt. for each
10 miles or fraction thereof (by the shortest hard surface highway as
computed by the market administrator) between the plant to which the
milk was diverted and the closest pool distributing plant located in
the marketing area; and
* * * * *
2. Revise Sec. 1005.75 to read as follows:
Sec. 1005.75 Plant location adjustments for producer milk and nonpool
milk.
For purposes of making payments for producer milk and nonpool milk:
Except milk diverted to plants located outside the marketing area
described in either Sec. Sec. 1005.2 or 1007.2 of this chapter, a
plant location adjustment shall be determined by subtracting the Class
I price specified in Sec. 1005.51 from the Class I price at the
plant's location; for milk diverted to plants located outside the
marketing area described in either Sec. Sec. 1005.2 or 1007.2 of this
chapter, a plant location adjustment shall be determined by subtracting
the Class I price specified in Sec. 1005.51 from the result of the
formula found in Sec. 1005.13(d)(6) for such milk. The difference,
plus or minus as the case may be, shall be used to adjust the payments
require pursuant to Sec. Sec. 1005.73 and 1000.76.
1. Revise Sec. 1007.13(d)(6) to read as follows:
Sec. 1007.13 Producer milk.
* * * * *
(d) * * *
(6) Milk diverted to plants located in the marketing area described
in 7 CFR parts 1005 and 1007, shall be priced at the location of the
plant to which diverted; milk diverted to plants located outside the
marketing area described in either Sec. Sec. 1005.2 or 1007.2, shall
be priced at the location of the closest pool distributing plant
located in the marketing area less an adjustment calculated by
multiplying Y (currently believe this to be close to 4.0, but may
provide evidence for a higher or lower number) cents per cwt. for each
10 miles or fraction there of (by the shortest hard surface highway as
computed by the market administrator) between the plant to which the
milk was diverted and the closest pool distributing plant located in
the marketing area; and
* * * * *
2. Revise Sec. 1007.75 to read as follows:
[[Page 76724]]
Sec. 1007.75 Plant location adjustments for producer milk and nonpool
milk.
For purposes of making payments for producer milk and nonpool milk:
Except for milk diverted to plants located outside the marketing area
described in Sec. Sec. 1005.2 and 1007.2, a plant location adjustment
shall be determined by subtracting the Class I price specified in Sec.
1007.51 from the Class I price at the plant's location; for milk
diverted to plants located outside the marketing area described in
either Sec. Sec. 1005.2 of this chapter or 1007.2, a plant location
adjustment shall be determined by subtracting the Class I price
specified in Sec. 1007.51 from the result of the formula found in
Sec. 1007.13(d)(6) for such milk. The difference, plus or minus as the
case may be, shall be used to adjust the payments require pursuant to
Sec. Sec. 1007.73 and 1000.76.
Proposed by Dairy Programs, Agricultural Marketing Service
Proposal No. 6
For all Federal Milk Marketing Orders, make such changes as may be
necessary to make the entire marketing agreements and the orders
conform with any amendments thereto that may result from this hearing.
Copies of this notice of hearing and the orders may be procured
from the market administrator of each of the aforesaid marketing areas,
or from the Hearing Clerk, Room 1031, South Building, United States
Department of Agriculture, Washington, DC 20250, or may be inspected
there.
Copies of the transcript of testimony taken at the hearing will not
be available for distribution through the Hearing Clerk's Office. If
you wish to purchase a copy, arrangements may be made with the reporter
at the hearing.
From the time that a hearing notice is issued and until the
issuance of a final decision in a proceeding, Department employees
involved in the decision-making process are prohibited from discussing
the merits of the hearing issues on an ex parte basis with any person
having an interest in the proceeding. For this particular proceeding,
the prohibition applies to employees in the following organizational
units:
Office of the Secretary of Agriculture.
Office of the Administrator, Agricultural Marketing Service.
Office of the General Counsel.
Dairy Programs, Agricultural Marketing Service (Washington office) and
the Offices of all Market Administrators.
Procedural matters are not subject to the above prohibition and may
be discussed at any time.
Dated: December 22, 2005.
Kenneth C. Clayton,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 05-24543 Filed 12-23-05; 10:33 am]
BILLING CODE 3410-02-P
