Processed Fruits and Vegetables, 10035-10038 [E7-3937]
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Federal Register / Vol. 72, No. 44 / Wednesday, March 7, 2007 / Rules and Regulations
guidance, this part applies to any
contract, regardless of tier, that is
awarded by a contractor, subcontractor,
supplier, consultant, or its agent or
representative in any transaction, if the
contract is to be funded or provided by
the DOS under a covered
nonprocurement transaction and the
amount of the contract is expected to
equal or exceed $25,000. This extends
the coverage of the DOS
nonprocurement suspension and
debarment requirements to all lower
tiers of subcontracts under covered
nonprocurement transactions, as
permitted under the OMB guidance at 2
CFR 180.220(c) (see optional lower tier
coverage in the figure in the appendix
to 2 CFR part 180).
§ 601.1010 Suspending official
(Department of Energy supplement to
government-wide definition at 2 CFR
180.1010).
The Debarring Official for the
Department of State is the Procurement
Executive, Office of the Procurement
Executive (A/OPE).
Subpart J [Reserved]
§ 601.332 What methods must I use to
pass requirements down to participants at
lower tiers with whom I intend to do
business?
You, as a participant, must include a
term or condition in lower-tier
transactions requiring lower-tier
participants to comply with subpart C of
the OMB guidance in 2 CFR part 180,
as supplemented by this subpart.
Subpart D—Responsibilities of Federal
Agency Officials Regarding
Transactions
§ 601.437 What method do I use to
communicate to a participant the
requirements described in the OMB
guidance at 2 CFR 180.435?
PART 133—[AMENDED]
7 CFR Part 52
2. The authority citation for part 133
continues to read as follows:
[Docket # AMS–FV–07–0025; FV–05–379]
I
RIN 0581–AC56
Authority: 22 U.S.C. 2658; 41 U.S.C. 701,
et seq.
Processed Fruits and Vegetables
AGENCY:
[Amended]
3. Section 133.510, paragraph (c) is
amended by revising the citation, ‘‘22
CFR part 137’’ to read: ‘‘2 CFR Part
601.’’
I
PART 137 [Removed]
I
4. Part 137 is removed.
PART 145 [Amended]
5. The authority citation for part 145
continues to read as follows:
I
Authority: 22 U.S.C. 2658.1; OMB Circular
A–110 (64 FR 54926, October 8, 1999).
[Amended]
4. Section 145.13 is amended by
revising the citation, ‘‘22 CFR part 137’’
to read, ‘‘2 CFR 601.’’
§ 145.44
[Amended]
5. Section 145.44 is amended by
revising the citation, ‘‘22 CFR part 137’’
to read, ‘‘2 CFR 601.’’
I
§ 145.62
[Amended]
6. Section 145.62 paragraph (d) is
amended by revising the citation, ‘‘22
CFR part 137’’ to read, ‘‘2 CFR 601.’’
I
Appendix A to Part 145 [Amended]
7. Appendix A to part 145 is amended
by revising the second sentence of
paragraph (8) to read, ‘‘No contract shall
be made to parties listed on the General
Services Administration’s Excluded
Parties List System (https://
www.epls.gov) from Federal
Procurement or Nonprocurement
Programs in accordance with Executive
Orders 12549 and 12689, ‘Debarment
and Suspension.’ ’’
I
Subpart I—Definitions
§ 601.930 Debarring official (Department of
State supplement to government-wide
definition at 2 CFR 180.930).
sroberts on PROD1PC70 with RULES
Agricultural Marketing Service
Chapter I—Department of State
I
Subpart E Through H [Reserved]
The Debarring Official for the
Department of State is the Procurement
Executive, Office of the Procurement
Executive (A/OPE).
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DEPARTMENT OF AGRICULTURE
Title 22—Foreign Relations
§ 145.13
To communicate to a participant the
requirements described in 2 CFR
180.435 of the OMB guidance, you must
include a term or condition in the
transaction that requires the
participant’s compliance with subpart C
of 2 CFR part 180, as supplemented by
subpart C of this part, and requires the
participant to include a similar term or
condition in lower-tier covered
transactions.
15:48 Mar 06, 2007
Dated: February 26, 2007.
Georgia Hubert,
Director, Office of the Procurement Executive,
Federal Assistance Division, Department of
State.
[FR Doc. E7–3872 Filed 3–6–07; 8:45 am]
§ 133.510
Subpart C—Responsibilities of
Participants Regarding Transactions
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Agricultural Marketing Service,
USDA.
ACTION: Final rule.
SUMMARY: This rule revises the
regulations governing inspection and
certification for processed fruits,
vegetables, and processed products by
increasing the fees charged for these
products by 19 to 26 percent.
Furthermore, it revises the regulations
so applicants entering into an in-plant
inspection contract with the
Agricultural Marketing Service (AMS)
will incur the costs for the plant survey
and sanitation inspection. Finally, the
revision provides that applicants
entering into a year-round inspection
contract, less than year-round (four or
more consecutive 40 hour weeks)
contract, or lot inspection will incur
costs for Sunday differential when an
employee works on Sunday. Also
affected are the fees charged to persons
required to have inspections on
imported commodities in accordance
with the Agricultural Marketing
Agreement Act of 1937. In addition,
various editorial changes are being
made to enhance clarity. These
revisions are necessary in order to
recover, as nearly as practicable, the
costs of performing inspection services
under the Agricultural Marketing Act of
1946 and to ensure the program’s
financial stability.
DATES: Effective April 6, 2007.
FOR FURTHER INFORMATION CONTACT: Mr.
Terry B. Bane at the Office of the Branch
Chief, Processed Products Branch, Fruit
and Vegetable Programs, Agricultural
Marketing Service, U.S. Department of
Agriculture, STOP 0247, Washington,
DC 20250–0247, telephone, (202) 720–
4693, or e-mail Terry.Bane@usda.gov.
SUPPLEMENTARY INFORMATION:
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Executive Order 12866 and Regulatory
Flexibility Act
This rule has been determined to be
not significant for purposes of Executive
Order 12866 and, therefore, has not
been reviewed by the Office of
Management and Budget.
Also, pursuant to the requirements of
the Regulatory Flexibility Act (RFA), the
Agricultural Marketing Service (AMS)
has considered the economic impact of
this action on small entities. AMS
regularly reviews its user fee financed
programs to determine if the fees are
adequate. The Agency has and will
continue to identify and implement
appropriate changes to reduce its costs.
Such actions can reduce the need for fee
increases. The processed fruit and
vegetable grading and inspection service
administers a number of user fee
programs with established fee schedules
to offset the cost of the service. The fee
schedule for the subject lot, year-round,
and less than year-round processed fruit
and vegetable inspection programs was
last revised on October 30, 2003 (68 FR
61733). However, even with cost control
efforts, the existing fee schedule for
these programs will not generate
sufficient revenues to cover costs and
sustain an adequate reserve balance, 4
months of costs, as called for by Agency
policy (AMS Directive 408.1).
At the start of Fiscal Year (FY) 2006,
the processed fruit and vegetable
grading and inspection service had a
reserve balance of $8 million, of which,
the lot, year-round, and less than yearround programs accounted for $3.4
million. AMS projects that the costs for
the services covered by this final rule
will rise from $15 million in FY 2005 to
$15.4 million in FY 2006. Revenues for
FY 2006 are projected to be at $15.0
million. The increase in costs is
primarily a result of rising employee
salaries and benefits. For example, since
the last fee schedule change, employees
have received a 3.1 and 3.4 percent pay
increase effective January 2005 and
January 2006, respectively.
For FY 2006, the end-of-year reserve
balance will decline from $3.4 million
to $3.0 million, and the months of
reserve will fall from 2.6 months to 2.4
months. For FY 2007, without a fee
increase, the end-of-year reserve balance
would be $2.5 million; the months of
reserve will be 1.9; with the projected
costs of $15.8 million and revenues of
$15.3 million.
With the fee increase, these services
will generate sufficient revenue so that
by the end of FY 2007, the reserve
balance will be $5.3 million and 4.0
months. AMS will perform fee analyses
to determine if further fee adjustments
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in FY 2007 are necessary to maintain an
adequate reserve and ensure fiscal
stability.
The purpose of the RFA is to fit
regulatory actions to the scale of
businesses subject to such actions in
order that small businesses will not be
unduly or disproportionately burdened.
The first action increases user fee
revenue generated under the lot
inspection program and the year-round
and less than year-round inspection
programs by an estimated $1.5 million
in FY 2007. The second action will
recoup the cost for a plant survey and
sanitation inspection performed in
plants entering into an in-plant
inspection contract with AMS.
Currently, fees that are charged for a
plant survey and sanitation inspection
under § 52.48 are credited back to plants
entering into an in-plant inspection
contract with AMS within 60 days of
the survey. There are presently 239
plants with an in-plant inspection
contract not being charged for the plant
survey and sanitation inspection. Billing
for the plant survey and sanitation
inspection will increase user fee
revenue generated under the year-round
and less than year-round inspection
programs by approximately $143,000
annually. The third action will recoup
the cost for Sunday differential when an
employee works on Sunday for plants
entering into a year-round in-plant
contract, entering into a less than yearround in-plant (four or more
consecutive 40 hour weeks) contract,
and not under contract. During calendar
year 2004, there were 3,562 Sunday
differential hours not charged at
premium rate to applicants. Billing
applicants for Sunday differential will
increase user fee revenue generated
under the lot inspection program, the
year-round inspection program, and the
less than year-round inspection program
by approximately $35,000 annually. The
forth action will change the word
‘‘approvement’’ to ‘‘approved’’ in § 52.2,
Inspection Services; types of, paragraph
(d) Pack certification.
These actions are authorized under
the AMA of 1946 [7 U.S.C. 1622(h)]
which provides that the Secretary of
Agriculture assess and collect ‘‘such
fees as will be reasonable and as nearly
as may be to cover the costs of services
rendered * * *’’
There are more than 1,250 users of
Processed Products Branch’s lot, yearround, and less than year-round
inspection services (including
applicants who must meet import
requirements,1 inspections which
1 Section 8e of the Agricultural Marketing
Agreement Act of 1937, as amended (7 U.S.C. 601–
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amount to under two percent of all lot
inspections performed). A small portion
of these users are small entities under
the criteria established by the Small
Business Administration (13 CFR
121.201).
There are no additional reporting,
recordkeeping, or other compliance
requirements imposed upon small
entities as a result of this rule. AMS has
not identified any other federal rules
which may duplicate, overlap, or
conflict with this final rule. The impact
on all businesses, including small
entities, is very similar. Further, even
though fees will be increased, the
amount of the increase should not
significantly affect these entities.
This fee increase moves the program
towards an adequate reserve and
financial stability. Considering the
alternatives, without the fee increase,
this result would not be accomplished.
Finally, except for those applicants who
are required to obtain inspections in
connection with certain imports, these
businesses are under no obligation to
use these inspection services.
Executive Order 12988
The rule has been reviewed under
Executive Order 12988, Civil Justice
Reform. This rule is not intended to
have a retroactive effect and doesn’t
preempt any State or local laws,
regulations, or policies unless they
present an irreconcilable conflict with
this rule. There are no administrative
procedures which must be exhausted
prior to any judicial challenge to the
provisions of this final rule.
Final Action
The AMA authorizes official
inspection, grading, and certification for
processed fruits, vegetables, and
processed products made from them.
The AMA provides that the Secretary
collect reasonable fees from the users of
the services to cover, as nearly as
practicable, the costs of the services
rendered. This final rule amends the
schedule for fees for inspection services
rendered to the processed fruit and
vegetable industry to reflect the costs
necessary to operate the program.
AMS regularly reviews its user fee
programs to determine if the fees are
604), requires that whenever the Secretary of
Agriculture issues grade, size, quality or maturity
regulations under domestic marketing orders for
certain commodities, the same or comparable
regulations on imports of those commodities must
be issued. Import regulations apply only during
those periods when domestic marketing order
regulations are in effect. Currently, there are 4
processed commodities subject to 8e import
regulations: Canned ripe olives, dates, prunes, and
processed raisins. A current listing of the regulated
commodities can be found in 7 CFR Parts 944 and
999.
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Federal Register / Vol. 72, No. 44 / Wednesday, March 7, 2007 / Rules and Regulations
adequate. While AMS continues to
pursue opportunities to reduce its costs,
the existing fee schedule will not
generate sufficient revenues to cover lot,
year-round, and less than year-round
inspection program costs while
maintaining an adequate reserve
balance.
Based on the Agency’s analysis of
increasing program costs, AMS is (1)
increasing the fees relating to lot, yearround, and less than year-round
inspection services, (2) billing in-plant
applicants for plant survey and
sanitation inspection, and (3) billing
applicants for Sunday differential when
applicable.
At the start of FY 2006, the processed
fruit and vegetable grading and
inspection service had a reserve balance
of $8 million, of which, the lot, yearround, and less than year-round
programs accounted for $3.4 million.
AMS projects that the costs for the
services covered by this final rule will
rise from $15 million in FY 2005 to
$15.4 million in FY 2006. Revenues for
FY 2006 are projected to be at $15.0
million. The increase in costs is
primarily a result of rising employee
salaries and benefits. For example, since
the last fee schedule change, employees
have received a 3.1 and 3.4 percent pay
increase effective January 2005 and
January 2006, respectively.
For FY 2006, the end-of-year reserve
balance will decline from $3.4 million
to $3.0 million, and the months of
reserve will fall from 2.6 months to 2.4
months. For FY 2007, without a fee
increase, the end-of-year reserve balance
would be $2.5 million; the months of
reserve would be 1.9; with the projected
costs of $15.8 million and revenues of
$15.3 million.
With the fee increase these services
will generate sufficient revenue so that
by the end of FY 2007, the reserve
balance will be $5.3 million and 4.0
months. AMS will perform fee analyses
to determine if further fee adjustments
in FY 2007 are necessary to maintain an
adequate reserve and ensure fiscal
stability.
For inspection services charged on a
contract basis under § 52.51, overtime
work will also continue to be charged as
provided in that section. The following
fee schedule compares current fees and
charges with final fees and charges for
processed fruit and vegetable inspection
as found in 7 CFR 52.42–52.51. Unless
otherwise provided for by written
agreement between the applicant and
the Administrator, the charges in the
schedule of fees as found in § 52.42 are:
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Current
Final
$52.00/hr.
$62.00/hr.
Charges for travel and other expenses
as found in § 52.50 are:
Current
Final
$52.00/hr.
$62.00/hr.
Charges for year-round in-plant
inspection services on a contract basis
as found in § 52.51 (c) are:
(1) For inspector assigned on a yearround basis:
Current
Final
$39.00/hr.
$49.00/hr.
(2) For inspector assigned on less than
a year-round basis:
Each inspector:
Current
Final
$52.00/hr.
$65.00/hr.
Charges for less than year-round inplant inspection services (four or more
consecutive 40 hour weeks) on a
contract basis as found in § 52.51 (d)
are:
(1) Each inspector:
Current
Final
$52.00/hr.
$65.00/hr.
Furthermore, AMS will recoup the
cost for a plant survey and sanitation
inspection performed in plants entering
into an in-plant inspection contract with
AMS. Currently, fees that are charged
for a plant survey and sanitation
inspection are credited back to plants
entering into an in-plant inspection
contract with AMS within 60 days of
the survey. There are presently 239
plants with an in-plant inspection
contract not being charged for the plant
survey and sanitation inspection. Billing
for the plant survey and sanitation
inspection will increase user fee
revenue generated under the year-round
and less than year-round inspection
programs by approximately $143,000
annually. In addition, AMS will recoup
the cost for Sunday differential for
plants entering into a year-round inplant contract, entering into a less than
year-round in-plant (four or more
consecutive 40 hour weeks) contract,
and not under contract. During calendar
year 2004, there were 3,562 Sunday
differential hours not charged to plants.
Billing plants for Sunday differential
will increase user fee revenue generated
under the lot inspection program, the
year-round inspection program, and the
less than year-round inspection program
by approximately $35,000 annually.
Finally, the last action will change the
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10037
word ‘‘approvement’’ to ‘‘approved’’ in
§ 52.2, Inspection Service; types of,
paragraph (d) Pack certification.
A notice of proposed rulemaking was
published in the Federal Register on
July 11, 2006, (71 FR, No. 132, 39017)
with a thirty-day comment period. AMS
received two comments during this
period.
The first comment was received from
the Association of Food Industries, Inc.
(AFI). AFI asked how this revision
would affect imported products. The fee
increase applies to the voluntary
inspection and certification of processed
fruits and vegetables whether domestic
or imported. Further, as noted
previously under 8e of the Agricultural
Marketing Agreement Act of 1937,
certain imported processed
commodities are subject to import
regulations which include inspection
requirements.
The second comment was received
from an individual who expressed
concurrence with the revision.
List of Subjects in 7 CFR Part 52
Food grades and standards, Food
labeling, Frozen foods, Fruit juices,
Fruits, Reporting and record keeping
requirements, and Vegetables.
I For the reasons set forth in the
preamble, 7 CFR part 52 is amended as
follows:
PART 52—[AMENDED]
1. The authority citation for part 52
continues to read as follows:
I
Authority: 7 U.S.C. 1621–1627.
§ 52.2
[Amended]
2. In § 52.2, under the term
‘‘Inspection Service; types of’’, in
paragraph (d) under the term ‘‘pack
certification’’ the word ‘‘approvement’’
is revised to read ‘‘approved’’.
I 3. In § 52.42, the figure ‘‘$52.00’’ is
revised to read ‘‘$62.00’’ and a sentence
is added at the end of the section to read
as follows:
I
§ 52.42
Schedule of fees.
* * * A twenty-five (25) percent
Sunday differential charge will be made
for all work performed on Sunday.
I 5. Section 52.48 is revised to read as
follows:
§ 52.48 Charges for plant survey and
inspection.
The fees to be charged for a plant
survey and inspection shall be at the
rates prescribed in § 52.42 and § 52.51.
§ 52.50
[Amended]
I 6. In § 52.50, the figure ‘‘$52.00’’ is
revised to read ‘‘$62.00’’.
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7. In § 52.51, paragraph (c)(1), the
figure ‘‘$39.00’’ is revised to read
‘‘$49.00’’, in paragraph (c)(2), the figure
‘‘$52.00’’ is revised to read ‘‘$65.00’’,
and in paragraph (d)(1), the figure
‘‘$52.00’’ is revised to read ‘‘$65.00’’
and new paragraphs (c)(6) and (d)(6) are
added to read as follows:
I
§ 52.51 Charges for inspection services on
a contract basis.
*
*
*
*
*
(c) * * *
(6) Sunday differential. A 25 percent
Sunday differential will be charged for
all work performed on Sunday.
*
*
*
*
*
(d) * * *
(6) Sunday differential. A 25 percent
Sunday differential will be charged for
all work performed on Sunday.
*
*
*
*
*
Dated: March 1, 2007.
Lloyd C. Day,
Administrator, Agricultural Marketing
Service.
[FR Doc. E7–3937 Filed 3–6–07; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF ENERGY
Office of Energy Efficiency and
Renewable Energy
10 CFR Part 431
[Docket Nos. EE–RM/STD–03–100, EE–RM/
STD–03–200, and EE–RM/STD–03–300]
RIN Nos. 1904–AB16, 1904–AB17, and
1904–AB44
Energy Efficiency Program for Certain
Commercial and Industrial Equipment:
Efficiency Standards for Commercial
Heating, Air-Conditioning, and WaterHeating Equipment
Office of Energy Efficiency and
Renewable Energy, Department of
Energy.
ACTION: Final rule.
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AGENCY:
SUMMARY: The Energy Policy and
Conservation Act, as amended (EPCA),
establishes energy conservation
standards for various commercial and
industrial equipment. EPCA further
provides with respect to certain
equipment covered by this rule, that if
the American Society of Heating,
Refrigerating and Air-Conditioning
Engineers (ASHRAE) and the
Illuminating Engineering Society of
North America (IESNA) amend
ASHRAE/IESNA Standard 90.1 as in
effect on October 24, 1992, then the
Department of Energy (DOE) must
establish amended national standards at
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the ASHRAE/IESNA Standard 90–1
minimum energy efficiency levels
unless DOE determines that evidence
supports adoption of higher standard
levels or certain other circumstances
exist. ASHRAE/IESNA amended
ASHRAE/IESNA Standard 90.1 on
October 29, 1999 (ASHRAE/IESNA
Standard 90.1–1999), and DOE initiated
this rulemaking to consider
amendments to the national standards.
DOE has concluded that it lacks
authority to pursue higher standards for
gas-fired instantaneous water heaters
and large commercial packaged boilers.
For small commercial packaged boilers
with capacities greater than 300,000
Btu/h and less than or equal to 2.5
million British thermal units per hour,
DOE is declining to adopt revised
efficiency standards contained in the
ASHRAE/IESNA Standard 90.1–1999
because the revised levels are less
stringent than the current national
standard. In addition, DOE has decided
to conduct a separate rulemaking to
consider whether standards at higher
levels than those in the ASHRAE/IESNA
Standard 90.1–1999 are warranted for
packaged terminal air conditioners and
packaged terminal heat pumps. Finally,
DOE has concluded it does not have the
authority to adopt, as uniform national
standards, efficiency standards
contained in Addenda f and b,
respectively, to ASHRAE/IESNA
Standard 90.1–2004 for three-phase air
conditioners and heat pumps with
cooling capacities less than 65,000
British thermal units per hour, and
single-package vertical air conditioners
and single-package vertical heat pumps
with cooling capacities less than 65,000
Btu/h.
DATES: Effective Date: April 6, 2007.
FOR FURTHER INFORMATION CONTACT:
Maureen Murphy, Project Manager, U.S.
Department of Energy, Office of Energy
Efficiency and Renewable Energy,
Building Technologies Program, EE–2J,
1000 Independence Avenue, SW.,
Washington, DC 20585–0121, (202) 586–
0598, or e-mail
Maureen.Murphy@ee.doe.gov.
Francine Pinto, Esq., U.S. Department
of Energy, Office of the General Counsel,
GC–72, 1000 Independence Avenue,
SW., Washington, DC 20585–0103, (202)
586–9507, or e-mail
Francine.Pinto@hq.doe.gov.
SUPPLEMENTARY INFORMATION:
I. Introduction
A. Summary of Today’s Actions
B. Authority
C. Background
1. ASHRAE/IESNA Standard 90.1 and the
Department of Energy’s Response
2. Subsequent Action by the Department of
Energy
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3. The Energy Policy Act of 2005
II. Discussion of Comments and DOE Final
Rule
A. Large Commercial Packaged Boilers
(Greater Than 2.5 million British
Thermal Units Per Hour) and Gas-Fired
Instantaneous Water Heaters
B. Small Commercial Packaged Boilers
(Greater Than 300,000 British Thermal
Units Per Hour and Less Than or Equal
to 2.5 million British Thermal Units Per
Hour)
C. Packaged Terminal Air Conditioners and
Packaged Terminal Heat Pumps
D. Three-Phase Air Conditioners and Heat
Pumps less than 65,000 British Thermal
Units Per Hour
E. Single-Package Vertical Air Conditioners
and Single-Package Vertical Heat Pumps
Less Than 65,000 Btu/h
F. Single-Package Vertical Air Conditioners
and Single-Package Vertical Heat Pumps
Greater Than or Equal to 65,000 Btu/h
and Less Than 240,000 Btu/h
III. Procedural Requirements
A. Review Under Executive Order 12866
B. Review Under the Regulatory Flexibility
Act
C. Review Under the Paperwork Reduction
Act of 1995
D. Review Under the National
Environmental Policy Act of 1969
E. Review Under Executive Order 13132
F. Review Under Executive Order 12988
G. Review Under the Unfunded Mandates
Reform Act of 1995
H. Review Under the Treasury and General
Government Appropriations Act, 1999
I. Review Under Executive Order 12630
J. Review Under the Treasury and General
Government Appropriations Act, 2001
K. Review Under Executive Order 13211
L. Congressional Notification
IV. Approval of the Office of the Secretary
I. Introduction
A. Summary of Today’s Actions
Today’s final rule addresses five
categories of commercial equipment 1:
(1) Small and large commercial
packaged boilers; (2) gas-fired
instantaneous water heaters; (3)
packaged terminal air conditioners
(PTACs) and packaged terminal heat
pumps (PTHPs); (4) three-phase air
conditioners (ACs) and heat pumps
(HPs) with cooling capacities less than
65,000 British thermal units per hour
(Btu/h); and (5) single-package vertical
air conditioners (SPVAC) and singlepackage vertical heat pumps (SPVHP),
collectively referred to as single package
vertical units (SPVUs).
By today’s action, DOE is publishing
a final rule that prescribes no amended
standard. As discussed in section II.A
through II.F of this notice, DOE has
decided:
1 DOE uses the terms ‘‘product’’ and ‘‘equipment’’
interchangeably in this final rule. Where DOE refers
to the categories of ‘‘residential products’’ covered
by 10 CFR Part 430, DOE uses the phrase
‘‘residential products.’’
E:\FR\FM\07MRR1.SGM
07MRR1
]]>Agencies
[Federal Register Volume 72, Number 44 (Wednesday, March 7, 2007)]
[Rules and Regulations]
[Pages 10035-10038]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-3937]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 52
[Docket AMS-FV-07-0025; FV-05-379]
RIN 0581-AC56
Processed Fruits and Vegetables
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: This rule revises the regulations governing inspection and
certification for processed fruits, vegetables, and processed products
by increasing the fees charged for these products by 19 to 26 percent.
Furthermore, it revises the regulations so applicants entering into an
in-plant inspection contract with the Agricultural Marketing Service
(AMS) will incur the costs for the plant survey and sanitation
inspection. Finally, the revision provides that applicants entering
into a year-round inspection contract, less than year-round (four or
more consecutive 40 hour weeks) contract, or lot inspection will incur
costs for Sunday differential when an employee works on Sunday. Also
affected are the fees charged to persons required to have inspections
on imported commodities in accordance with the Agricultural Marketing
Agreement Act of 1937. In addition, various editorial changes are being
made to enhance clarity. These revisions are necessary in order to
recover, as nearly as practicable, the costs of performing inspection
services under the Agricultural Marketing Act of 1946 and to ensure the
program's financial stability.
DATES: Effective April 6, 2007.
FOR FURTHER INFORMATION CONTACT: Mr. Terry B. Bane at the Office of the
Branch Chief, Processed Products Branch, Fruit and Vegetable Programs,
Agricultural Marketing Service, U.S. Department of Agriculture, STOP
0247, Washington, DC 20250-0247, telephone, (202) 720-4693, or e-mail
Terry.Bane@usda.gov.
SUPPLEMENTARY INFORMATION:
[[Page 10036]]
Executive Order 12866 and Regulatory Flexibility Act
This rule has been determined to be not significant for purposes of
Executive Order 12866 and, therefore, has not been reviewed by the
Office of Management and Budget.
Also, pursuant to the requirements of the Regulatory Flexibility
Act (RFA), the Agricultural Marketing Service (AMS) has considered the
economic impact of this action on small entities. AMS regularly reviews
its user fee financed programs to determine if the fees are adequate.
The Agency has and will continue to identify and implement appropriate
changes to reduce its costs. Such actions can reduce the need for fee
increases. The processed fruit and vegetable grading and inspection
service administers a number of user fee programs with established fee
schedules to offset the cost of the service. The fee schedule for the
subject lot, year-round, and less than year-round processed fruit and
vegetable inspection programs was last revised on October 30, 2003 (68
FR 61733). However, even with cost control efforts, the existing fee
schedule for these programs will not generate sufficient revenues to
cover costs and sustain an adequate reserve balance, 4 months of costs,
as called for by Agency policy (AMS Directive 408.1).
At the start of Fiscal Year (FY) 2006, the processed fruit and
vegetable grading and inspection service had a reserve balance of $8
million, of which, the lot, year-round, and less than year-round
programs accounted for $3.4 million. AMS projects that the costs for
the services covered by this final rule will rise from $15 million in
FY 2005 to $15.4 million in FY 2006. Revenues for FY 2006 are projected
to be at $15.0 million. The increase in costs is primarily a result of
rising employee salaries and benefits. For example, since the last fee
schedule change, employees have received a 3.1 and 3.4 percent pay
increase effective January 2005 and January 2006, respectively.
For FY 2006, the end-of-year reserve balance will decline from $3.4
million to $3.0 million, and the months of reserve will fall from 2.6
months to 2.4 months. For FY 2007, without a fee increase, the end-of-
year reserve balance would be $2.5 million; the months of reserve will
be 1.9; with the projected costs of $15.8 million and revenues of $15.3
million.
With the fee increase, these services will generate sufficient
revenue so that by the end of FY 2007, the reserve balance will be $5.3
million and 4.0 months. AMS will perform fee analyses to determine if
further fee adjustments in FY 2007 are necessary to maintain an
adequate reserve and ensure fiscal stability.
The purpose of the RFA is to fit regulatory actions to the scale of
businesses subject to such actions in order that small businesses will
not be unduly or disproportionately burdened. The first action
increases user fee revenue generated under the lot inspection program
and the year-round and less than year-round inspection programs by an
estimated $1.5 million in FY 2007. The second action will recoup the
cost for a plant survey and sanitation inspection performed in plants
entering into an in-plant inspection contract with AMS. Currently, fees
that are charged for a plant survey and sanitation inspection under
Sec. 52.48 are credited back to plants entering into an in-plant
inspection contract with AMS within 60 days of the survey. There are
presently 239 plants with an in-plant inspection contract not being
charged for the plant survey and sanitation inspection. Billing for the
plant survey and sanitation inspection will increase user fee revenue
generated under the year-round and less than year-round inspection
programs by approximately $143,000 annually. The third action will
recoup the cost for Sunday differential when an employee works on
Sunday for plants entering into a year-round in-plant contract,
entering into a less than year-round in-plant (four or more consecutive
40 hour weeks) contract, and not under contract. During calendar year
2004, there were 3,562 Sunday differential hours not charged at premium
rate to applicants. Billing applicants for Sunday differential will
increase user fee revenue generated under the lot inspection program,
the year-round inspection program, and the less than year-round
inspection program by approximately $35,000 annually. The forth action
will change the word ``approvement'' to ``approved'' in Sec. 52.2,
Inspection Services; types of, paragraph (d) Pack certification.
These actions are authorized under the AMA of 1946 [7 U.S.C.
1622(h)] which provides that the Secretary of Agriculture assess and
collect ``such fees as will be reasonable and as nearly as may be to
cover the costs of services rendered * * *''
There are more than 1,250 users of Processed Products Branch's lot,
year-round, and less than year-round inspection services (including
applicants who must meet import requirements,\1\ inspections which
amount to under two percent of all lot inspections performed). A small
portion of these users are small entities under the criteria
established by the Small Business Administration (13 CFR 121.201).
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\1\ Section 8e of the Agricultural Marketing Agreement Act of
1937, as amended (7 U.S.C. 601-604), requires that whenever the
Secretary of Agriculture issues grade, size, quality or maturity
regulations under domestic marketing orders for certain commodities,
the same or comparable regulations on imports of those commodities
must be issued. Import regulations apply only during those periods
when domestic marketing order regulations are in effect. Currently,
there are 4 processed commodities subject to 8e import regulations:
Canned ripe olives, dates, prunes, and processed raisins. A current
listing of the regulated commodities can be found in 7 CFR Parts 944
and 999.
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There are no additional reporting, recordkeeping, or other
compliance requirements imposed upon small entities as a result of this
rule. AMS has not identified any other federal rules which may
duplicate, overlap, or conflict with this final rule. The impact on all
businesses, including small entities, is very similar. Further, even
though fees will be increased, the amount of the increase should not
significantly affect these entities.
This fee increase moves the program towards an adequate reserve and
financial stability. Considering the alternatives, without the fee
increase, this result would not be accomplished. Finally, except for
those applicants who are required to obtain inspections in connection
with certain imports, these businesses are under no obligation to use
these inspection services.
Executive Order 12988
The rule has been reviewed under Executive Order 12988, Civil
Justice Reform. This rule is not intended to have a retroactive effect
and doesn't preempt any State or local laws, regulations, or policies
unless they present an irreconcilable conflict with this rule. There
are no administrative procedures which must be exhausted prior to any
judicial challenge to the provisions of this final rule.
Final Action
The AMA authorizes official inspection, grading, and certification
for processed fruits, vegetables, and processed products made from
them. The AMA provides that the Secretary collect reasonable fees from
the users of the services to cover, as nearly as practicable, the costs
of the services rendered. This final rule amends the schedule for fees
for inspection services rendered to the processed fruit and vegetable
industry to reflect the costs necessary to operate the program.
AMS regularly reviews its user fee programs to determine if the
fees are
[[Page 10037]]
adequate. While AMS continues to pursue opportunities to reduce its
costs, the existing fee schedule will not generate sufficient revenues
to cover lot, year-round, and less than year-round inspection program
costs while maintaining an adequate reserve balance.
Based on the Agency's analysis of increasing program costs, AMS is
(1) increasing the fees relating to lot, year-round, and less than
year-round inspection services, (2) billing in-plant applicants for
plant survey and sanitation inspection, and (3) billing applicants for
Sunday differential when applicable.
At the start of FY 2006, the processed fruit and vegetable grading
and inspection service had a reserve balance of $8 million, of which,
the lot, year-round, and less than year-round programs accounted for
$3.4 million. AMS projects that the costs for the services covered by
this final rule will rise from $15 million in FY 2005 to $15.4 million
in FY 2006. Revenues for FY 2006 are projected to be at $15.0 million.
The increase in costs is primarily a result of rising employee salaries
and benefits. For example, since the last fee schedule change,
employees have received a 3.1 and 3.4 percent pay increase effective
January 2005 and January 2006, respectively.
For FY 2006, the end-of-year reserve balance will decline from $3.4
million to $3.0 million, and the months of reserve will fall from 2.6
months to 2.4 months. For FY 2007, without a fee increase, the end-of-
year reserve balance would be $2.5 million; the months of reserve would
be 1.9; with the projected costs of $15.8 million and revenues of $15.3
million.
With the fee increase these services will generate sufficient
revenue so that by the end of FY 2007, the reserve balance will be $5.3
million and 4.0 months. AMS will perform fee analyses to determine if
further fee adjustments in FY 2007 are necessary to maintain an
adequate reserve and ensure fiscal stability.
For inspection services charged on a contract basis under Sec.
52.51, overtime work will also continue to be charged as provided in
that section. The following fee schedule compares current fees and
charges with final fees and charges for processed fruit and vegetable
inspection as found in 7 CFR 52.42-52.51. Unless otherwise provided for
by written agreement between the applicant and the Administrator, the
charges in the schedule of fees as found in Sec. 52.42 are:
Current Final
$52.00/hr. $62.00/hr.
Charges for travel and other expenses as found in Sec. 52.50 are:
Current Final
$52.00/hr. $62.00/hr.
Charges for year-round in-plant inspection services on a contract
basis as found in Sec. 52.51 (c) are:
(1) For inspector assigned on a year-round basis:
Current Final
$39.00/hr. $49.00/hr.
(2) For inspector assigned on less than a year-round basis:
Each inspector:
Current Final
$52.00/hr. $65.00/hr.
Charges for less than year-round in-plant inspection services (four
or more consecutive 40 hour weeks) on a contract basis as found in
Sec. 52.51 (d) are:
(1) Each inspector:
Current Final
$52.00/hr. $65.00/hr.
Furthermore, AMS will recoup the cost for a plant survey and
sanitation inspection performed in plants entering into an in-plant
inspection contract with AMS. Currently, fees that are charged for a
plant survey and sanitation inspection are credited back to plants
entering into an in-plant inspection contract with AMS within 60 days
of the survey. There are presently 239 plants with an in-plant
inspection contract not being charged for the plant survey and
sanitation inspection. Billing for the plant survey and sanitation
inspection will increase user fee revenue generated under the year-
round and less than year-round inspection programs by approximately
$143,000 annually. In addition, AMS will recoup the cost for Sunday
differential for plants entering into a year-round in-plant contract,
entering into a less than year-round in-plant (four or more consecutive
40 hour weeks) contract, and not under contract. During calendar year
2004, there were 3,562 Sunday differential hours not charged to plants.
Billing plants for Sunday differential will increase user fee revenue
generated under the lot inspection program, the year-round inspection
program, and the less than year-round inspection program by
approximately $35,000 annually. Finally, the last action will change
the word ``approvement'' to ``approved'' in Sec. 52.2, Inspection
Service; types of, paragraph (d) Pack certification.
A notice of proposed rulemaking was published in the Federal
Register on July 11, 2006, (71 FR, No. 132, 39017) with a thirty-day
comment period. AMS received two comments during this period.
The first comment was received from the Association of Food
Industries, Inc. (AFI). AFI asked how this revision would affect
imported products. The fee increase applies to the voluntary inspection
and certification of processed fruits and vegetables whether domestic
or imported. Further, as noted previously under 8e of the Agricultural
Marketing Agreement Act of 1937, certain imported processed commodities
are subject to import regulations which include inspection
requirements.
The second comment was received from an individual who expressed
concurrence with the revision.
List of Subjects in 7 CFR Part 52
Food grades and standards, Food labeling, Frozen foods, Fruit
juices, Fruits, Reporting and record keeping requirements, and
Vegetables.
0
For the reasons set forth in the preamble, 7 CFR part 52 is amended as
follows:
PART 52--[AMENDED]
0
1. The authority citation for part 52 continues to read as follows:
Authority: 7 U.S.C. 1621-1627.
Sec. 52.2 [Amended]
0
2. In Sec. 52.2, under the term ``Inspection Service; types of'', in
paragraph (d) under the term ``pack certification'' the word
``approvement'' is revised to read ``approved''.
0
3. In Sec. 52.42, the figure ``$52.00'' is revised to read ``$62.00''
and a sentence is added at the end of the section to read as follows:
Sec. 52.42 Schedule of fees.
* * * A twenty-five (25) percent Sunday differential charge will be
made for all work performed on Sunday.
0
5. Section 52.48 is revised to read as follows:
Sec. 52.48 Charges for plant survey and inspection.
The fees to be charged for a plant survey and inspection shall be
at the rates prescribed in Sec. 52.42 and Sec. 52.51.
Sec. 52.50 [Amended]
0
6. In Sec. 52.50, the figure ``$52.00'' is revised to read ``$62.00''.
[[Page 10038]]
0
7. In Sec. 52.51, paragraph (c)(1), the figure ``$39.00'' is revised
to read ``$49.00'', in paragraph (c)(2), the figure ``$52.00'' is
revised to read ``$65.00'', and in paragraph (d)(1), the figure
``$52.00'' is revised to read ``$65.00'' and new paragraphs (c)(6) and
(d)(6) are added to read as follows:
Sec. 52.51 Charges for inspection services on a contract basis.
* * * * *
(c) * * *
(6) Sunday differential. A 25 percent Sunday differential will be
charged for all work performed on Sunday.
* * * * *
(d) * * *
(6) Sunday differential. A 25 percent Sunday differential will be
charged for all work performed on Sunday.
* * * * *
Dated: March 1, 2007.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. E7-3937 Filed 3-6-07; 8:45 am]
BILLING CODE 3410-02-P
