Cotton Program Changes for Upland Cotton, Adjusted World Price, and Active Shipping Orders, 50847-50850 [2010-20352]
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Federal Register / Vol. 75, No. 159 / Wednesday, August 18, 2010 / Rules and Regulations
and protection of the President of the United
States or other individuals pursuant to
Section 3056 and 3056A of Title 18. The
DHS/ALL—001 Freedom of Information Act
and Privacy Act Records System of Records
contains information that is collected by, on
behalf of, in support of, or in cooperation
with DHS and its components and may
contain personally identifiable information
collected by other federal, state, local, tribal,
foreign, or international government
agencies. The Secretary of Homeland
Security has exempted this system from the
following provisions of the Privacy Act,
subject to limitations set forth in 5 U.S.C.
552a(c)(3) and (4): (d); (e)(1), (e)(2), (e)(3),
(e)(4)(G), (e)(4)(H), (e)(4)(I), (e)(5), (e)(8),
(e)(12); (f); (g)(1); and (h) pursuant to 5 U.S.C.
552a(j)(2). Additionally, the Secretary of
Homeland Security has exempted this system
from the following provisions of the Privacy
Act, subject to limitations set forth in 5
U.S.C. 552a(c)(3): (d); (e)(1), (e)(4)(G),
(e)(4)(H), (e)(4)(I); and (f) pursuant to 5 U.S.C.
§ 552a(k)(1), (k)(2), (k)(3), (k)(5), and (k)(6).
Exemptions from these particular subsections
are justified, on a case-by-case basis to be
determined at the time a request is made, for
the following reasons:
(a) From subsection (c)(3) and (4)
(Accounting for Disclosures) because release
of the accounting of disclosures could alert
the subject of an investigation of an actual or
potential criminal, civil, or regulatory
violation to the existence of that investigation
and reveal investigative interest on the part
of DHS as well as the recipient agency.
Disclosure of the accounting would therefore
present a serious impediment to law
enforcement efforts and/or efforts to preserve
national security. Disclosure of the
accounting would also permit the individual
who is the subject of a record to impede the
investigation, to tamper with witnesses or
evidence, and to avoid detection or
apprehension, which would undermine the
entire investigative process.
(b) From subsection (d) (Access to Records)
because access to the records contained in
this system of records could inform the
subject of an investigation of an actual or
potential criminal, civil, or regulatory
violation to the existence of that investigation
and reveal investigative interest on the part
of DHS or another agency. Access to the
records could permit the individual who is
the subject of a record to impede the
investigation, to tamper with witnesses or
evidence, and to avoid detection or
apprehension. Amendment of the records
could interfere with ongoing investigations
and law enforcement activities and would
impose an unreasonable administrative
burden by requiring investigations to be
continually reinvestigated. In addition,
permitting access and amendment to such
information could disclose security-sensitive
information that could be detrimental to
homeland security.
(c) From subsection (e)(1) (Relevancy and
Necessity of Information) because in the
course of investigations into potential
violations of federal law, the accuracy of
information obtained or introduced
occasionally may be unclear, or the
information may not be strictly relevant or
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necessary to a specific investigation. In the
interests of effective law enforcement, it is
appropriate to retain all information that may
aid in establishing patterns of unlawful
activity.
(d) From subsection (e)(2) (Collection of
Information from Individuals) because
requiring that information be collected from
the subject of an investigation would alert the
subject to the nature or existence of the
investigation, thereby interfering with that
investigation and related law enforcement
activities.
(e) From subsection (e)(3) (Notice to
Subjects) because providing such detailed
information could impede law enforcement
by compromising the existence of a
confidential investigation or reveal the
identity of witnesses or confidential
informants.
(f) From subsections (e)(4)(G), (e)(4)(H),
and (e)(4)(I) (Agency Requirements) and (f)
(Agency Rules), because portions of this
system are exempt from the individual access
provisions of subsection (d) for the reasons
noted above, and therefore DHS is not
required to establish requirements, rules, or
procedures with respect to such access.
Providing notice to individuals with respect
to existence of records pertaining to them in
the system of records or otherwise setting up
procedures pursuant to which individuals
may access and view records pertaining to
themselves in the system would undermine
investigative efforts and reveal the identities
of witnesses, and potential witnesses, and
confidential informants.
(g) From subsection (e)(5) (Collection of
Information) because with the collection of
information for law enforcement purposes, it
is impossible to determine in advance what
information is accurate, relevant, timely, and
complete. Compliance with subsection (e)(5)
would preclude DHS agents from using their
investigative training and exercise of good
judgment to both conduct and report on
investigations.
(h) From subsection (e)(8) (Notice on
Individuals) because compliance would
interfere with DHS’s ability to obtain, serve,
and issue subpoenas, warrants, and other law
enforcement mechanisms that may be filed
under seal and could result in disclosure of
investigative techniques, procedures, and
evidence.
(i) From subsection (e)(12) (Computer
Matching) if the agency is a recipient agency
or a source agency in a matching program
with a non-Federal agency, with respect to
any establishment or revision of a matching
program, at least 30 days prior to conducting
such program, publish in the Federal
Register notice of such establishment or
revision.
(j) From subsection (g)(1) (Civil Remedies)
to the extent that the system is exempt from
other specific subsections of the Privacy Act.
(k) From subsection (h) (Legal Guardians)
the parent of any minor, or the legal guardian
of any individual who has been declared to
be incompetent due to physical or mental
incapacity or age by a court of competent
jurisdiction, may act on behalf of the
individual.
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50847
Dated: August 3, 2010.
Mary Ellen Callahan,
Chief Privacy Officer, Department of
Homeland Security.
[FR Doc. 2010–20478 Filed 8–17–10; 8:45 am]
BILLING CODE 9110–9L–P
DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
7 CFR Parts 1423 and 1427
RIN 0560–AH81
Cotton Program Changes for Upland
Cotton, Adjusted World Price, and
Active Shipping Orders
Commodity Credit Corporation,
USDA.
ACTION: Final rule, technical corrections.
AGENCY:
CCC is amending a previous
final rule that implemented the 2008
Farm Bill provisions for the cotton
program. The correction removes
definitions that are no longer used
concerning Northern Europe prices for
cotton. CCC is also making clarifying
changes to the regulations for the cotton
program and for CCC-approved
warehouses. CCC is clarifying the
payment calculation for upland cotton
that is eligible for the Economic
Adjustment Assistance Program (EAAP)
and clarifying the definition of ‘‘active
shipping order.’’
DATES: Effective Date: August 18, 2010.
FOR FURTHER INFORMATION CONTACT:
Timothy Murray, Cotton Program
Manager, Commodity Operations
Division, Farm Service Agency, USDA,
Mail Stop 0533, 1400 Independence
Ave, SW., Washington, DC 20250–0572;
phone: (202) 720–2121; e-mail:
tim.murray@wdc.usda.gov. Persons with
disabilities who require alternative
means for communication (Braille, large
print, audiotape, etc.) should contact the
USDA Target Center at (202) 720–2600
(voice and TDD).
SUPPLEMENTARY INFORMATION: This rule
makes three changes to the regulations
for the cotton program and to the
regulations for CCC-approved
warehouses used for cotton. It removes
obsolete definitions from the regulations
for cotton non-recourse loans and loan
deficiency payments. It clarifies the
payment calculation for eligible upland
cotton to ensure that the EAAP meets
the original purpose. It adds definitions
to the regulations for CCC-approved
warehouses to clarify the information
that cotton warehouse operators must
report to CCC.
SUMMARY:
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50848
Federal Register / Vol. 75, No. 159 / Wednesday, August 18, 2010 / Rules and Regulations
Adjusted World Price—Removing
Obsolete Definitions
CCC published a final rule in the
Federal Register on November 5, 2008
(73 FR 65715–65724) implementing
changes to the cotton program required
by the Food, Conservation, and Energy
Act of 2008 (the 2008 Farm Bill, Pub. L.
110–246), including changes in the way
the adjusted world price for cotton is
calculated for the purposes of CCC
programs. The final rule amended 7 CFR
part 1427. That rule inadvertently did
not remove several terms that are no
longer needed and accordingly, this
correcting amendment removes the
terms ‘‘Northern Europe current price,’’
‘‘Northern Europe forward price,’’ and
‘‘Northern Europe price’’ from § 1427.3
because these terms are no longer used
in calculating the adjusted world price.
Because these terms are defined in 7
CFR part 1427, but not used in any of
the regulatory provisions in that part,
this change should have no impact on
cotton producers or on CCC cotton
programs.
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Upland Cotton—Clarifying Eligible
Cotton
The 2008 Farm Bill provides benefits
to domestic users of upland cotton
through EAAP. EAAP provides a
payment of four cents ($0.04) for each
pound of upland cotton consumed by an
eligible user during the period
beginning on August 1, 2008, and
ending on July 31, 2012. Beginning on
August 1, 2012, the value of the
assistance provided will be 3 cents per
pound. As specified in 7 CFR 1427.101,
the eligible types of cotton for EAAP are
baled lint, loose samples that have been
re-baled, semi-processed motes, and reginned (processed) motes.
Cotton motes are a byproduct of the
cotton ginning process. Typically, the
motes (the waste product from the
initial ginning process) are run back
through the gin to capture the residual
cotton fiber. In this process, while some
usable fiber is recovered, a substantial
proportion of the waste product by
weight is foreign material, seeds, and
non-usable plant parts. The motes are
typically reprocessed and cleaned
several times before the resulting
recovered fiber is of a quality suitable
for end use.
The purpose of EAAP is to pay users
of upland cotton for usable fiber, and
not for foreign material, seeds, and nonusable plant parts. There has been a
sudden increase in the number of
pounds of semi-processed motes
submitted for payment under EAAP
raising concern about the amount of the
payment and to address that matter this
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rule amends in the payment calculation
for semi-processed and reginned motes
in 7 CFR 1427.105.
This rule does not change the
payment calculation for baled upland
cotton, including lint, loose samples, or
reginned motes, that is used without
further processing. With respect,
however, to unbaled reginned motes
used in a continuous manufacturing
process, the payment will be
determined based on the weight of the
reginned motes after final cleaning. It
specifies that for semi-processed motes
that are of a quality suitable, without
further processing, for spinning, paper,
or non-woven cotton fabric, the
payment will be calculated on 25
percent of the weight (gross weight
minus the weight of baling and ties, if
baled). This is the consistent with the
payment calculations and with market
discounts. The discounts provide a
reasonable measure for converting
cotton-from-motes to the normal baled
cotton that is the focus of the statute.
Eliminating semi-processed motes
entirely on the grounds that the motes
are not, because of their limited uses
and their nature, really ‘‘cotton’’ within
the meaning of the statute was
considered. The 20 percent rule
implemented in this rule was
considered to be a reasonable and
proper compromise for treating semiprocessed motes as compensable cotton.
A parallel conforming change will be
made to the Upland Cotton Domestic
User Agreement between CCC and
participants in the EAAP. This change
will ensure that the EAAP payments are
based on the amount of upland cotton
actually used for domestic production,
and not for unusable waste products.
CCC Warehouses—Clarifying Active
Shipping Order
This rule clarifies what an ‘‘active
shipping order’’ is because the term is
currently used although not defined in
7 CFR part 1423. To clarify the term,
this rule adds definitions for ‘‘active
shipping order,’’ ‘‘early shipping order,’’
and ‘‘shipping order’’ to § 1423.3. As
defined in this rule, early shipping
orders and shipping orders are types of
active shipping orders. An active
shipping order, as defined in this rule,
is an ‘‘early shipping order or shipping
order, as defined in this section,
scheduled for a current cotton
warehouse reporting week or for a prior
reporting week, but not picked up.’’ An
‘‘early shipping order’’ is a list of bale tag
numbers sent to a cotton warehouse
operator without transfer of warehouse
receipts. A shipping order is a list of
bale tag numbers accompanied by the
transfer of warehouse receipts.
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Operators of CCC-approved cotton
warehouses asked for this clarifying
change, which relates to the information
they are required to report to CCC. This
change should not result in any cost to
CCC, cotton producers, or the
warehouse operators.
Notice and Comment
These regulations are exempt from the
notice and comment requirements of the
Administrative Procedures Act (5 U.S.C.
553), as specified in section 1601(c) of
the 2008 Farm Bill, which requires that
these regulations be promulgated and
administered without regard to the
notice and comment provisions of
section 553 of title 5 of the United States
Code or the Statement of Policy of the
Secretary of Agriculture effective July
24, 1971 (36 FR 13804) relating to
notices of proposed rulemaking and
public participation in rulemaking.
Therefore, these regulations are issued
as final.
Executive Order 12866
The Office of Management and Budget
(OMB) designated this final rule as not
significant under Executive Order 12866
and, therefore, OMB has not reviewed
this rule.
Regulatory Flexibility Act
This rule is not subject to the
Regulatory Flexibility Act because FSA
is not required to publish a notice of
proposed rulemaking for this rule.
Environmental Review
The environmental impacts of this
rule have been considered in a manner
consistent with the provisions of the
National Environmental Policy Act
(NEPA, 42 U.S.C. 4321–4347), the
regulations of the Council on
Environmental Quality (40 CFR parts
1500–1508), and FSA regulations for
compliance with NEPA (7 CFR part
799). The technical corrections
identified in this final rule do not
change the structure or goals of the
program and are considered simply
administrative in nature. Therefore, FSA
has determined that NEPA does not
apply to this final rule and no
environmental assessment or
environmental impact statement will be
prepared.
Executive Order 12372
This program is not subject to
Executive Order 12372, which requires
intergovernmental consultation with
State and local officials. See the notice
related to 7 CFR part 3015, subpart V,
published in the Federal Register on
June 24, 1983 (48 FR 29115).
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Federal Register / Vol. 75, No. 159 / Wednesday, August 18, 2010 / Rules and Regulations
Executive Order 12988
This rule has been reviewed under
Executive Order 12988, Civil Justice
Reform. This final rule is not retroactive
and does not preempt State or local
laws, regulations, or policies unless they
represent an irreconcilable conflict with
this rule. Before any judicial action may
be brought regarding provisions of this
rule, the administrative appeal
provisions of 7 CFR parts 11 and 780
must be exhausted.
rule is effective on the date of
publication in the Federal Register.
Paperwork Reduction Act
The regulations in this rule are
exempt from requirements of the
Paperwork Reduction Act (44 U.S.C.
Chapter 35), as specified in section 1601
of the 2008 Farm Bill, which provides
that these regulations be promulgated
and administered without regard to the
Paperwork Reduction Act.
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Small Business Regulatory Enforcement
Fairness Act of 1996
This rule is not a major rule under the
Small Business Regulatory Enforcement
Fairness Act of 1996, (Pub. L. 104–121,
SBREFA). Therefore, FSA is not
required to delay the effective date for
60 days from the date of publication to
allow for Congressional review and this
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Authority: 7 U.S.C. 7231–7236 and 8737;
and 15 U.S.C. 714b, and 714c.
§ 1427.3
[Amended]
§ 1427.105
FSA is committed to complying with
the E-Government Act, to promote the
use of the Internet and other
Information technologies to provide
increased opportunities for citizen
access to Government Information and
services, and for other purposes.
Title II of the Unfunded Mandate
Reform Act of 1995 (UMRA, Pub. L.
104–4) requires Federal agencies to
assess the effects of their regulatory
actions on State, local, or tribal
governments or the private sector.
Agencies generally must prepare a
written statement, including a cost
benefit analysis, for proposed and final
rules with Federal mandates that may
result in expenditures of $100 million or
more in any 1 year for State, local, or
tribal governments, in the aggregate, or
to the private sector. UMRA generally
requires agencies to consider
alternatives and adopt the more cost
effective or least burdensome alternative
that achieves the objectives of the rule.
This rule contains no Federal mandates
as defined by Title II of UMRA for State,
local, or tribal governments or for the
private sector. In addition, FSA was not
required to publish a notice of proposed
rulemaking for this rule. Therefore, this
rule is not subject to the requirements
of sections 202 and 205 of UMRA.
3. The authority citation for part 1427
is revised to read as follows:
■
7 CFR Part 1423
The policies contained in this rule do
not have any substantial direct effect on
States, on the relationship between the
Federal Government and the States, or
on the distribution of power and
responsibilities among the various
levels of government. Nor does this rule
impose substantial direct compliance
costs on State and local governments.
Therefore, consultation with the States
is not required.
Unfunded Mandates
PART 1427—COTTON
List of Subjects
E-Government Act Compliance
The policies contained in this rule do
not have tribal implications that
preempt tribal law.
operator accompanied by transfer of
warehouse receipts.
*
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4. Amend § 1427.3 by removing the
definitions for ‘‘Northern Europe current
price,’’ ‘‘Northern Europe forward price,’’
and ‘‘Northern Europe price.’’
■ 5. Amend § 1427.105 as follows:
■ a. Revise paragraphs (a) and (b) to read
as set forth below,
■ b. Remove paragraph (c), and
■ c. Redesignate paragraphs (d) and (e)
as paragraphs (c) and (d).
Executive Order 13132
Executive Order 13175
50849
Agricultural commodities, Honey,
Oilseeds, Reporting and recordkeeping
requirements, Surety bonds,
Warehouses.
7 CFR Part 1427
Cotton, Loan programs—agriculture,
Price support programs, Reporting and
recordkeeping requirements,
Warehouses.
■ For the reasons discussed above, this
rule amends 7 CFR parts 1423 and 1427
as follows:
PART 1423—COMMODITY CREDIT
CORPORATION APPROVED
WAREHOUSES
1. The authority citation for part 1423
continues to read as follows:
■
Authority: 15 U.S.C. 714b and 714c.
2. Amend § 1423.3 by adding, in
alphabetical order, definitions for
‘‘active shipping order,’’ ‘‘early shipping
order,’’ and ‘‘shipping order’’ to read as
follows:
■
§ 1423.3
Definitions.
Active shipping order means an early
shipping order or shipping order, as
defined in this section, scheduled for a
current cotton warehouse reporting
week or for a prior reporting week, but
not picked up.
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Early shipping order means a list of
bale tag numbers sent to a cotton
warehouse operator without transfer of
warehouse receipts.
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Shipping order means a list of bale tag
numbers sent to a cotton warehouse
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■
Payment.
(a) Payments specified in this subpart
will be determined by multiplying the
payment rate, as specified in § 1427.104,
by
(1) In the case of baled upland cotton,
whether lint, loose samples or reginned
motes, but not semi-processed motes,
the net weight of the cotton used (gross
weight minus the weight of bagging and
ties);
(2) In the case of unbaled reginned
motes consumed, without rebaling, for
an end use in a continuous
manufacturing process, the weight of
the reginned motes after final cleaning;
and
(3) In the case of semi-processed
motes which are of a quality suitable,
without further processing, for spinning,
papermaking, or manufacture of nonwoven cotton fabric, 25 percent of the
weight (gross weight minus the weight
of bagging and ties, if baled) of the semiprocessed motes; provided further, that
with respect to semi-processed motes
that are used prior to August 18, 2010,
payment may be allowed by CCC in its
sole discretion at 100 percent of the
weight as determined appropriate for a
transition of the program to the 25
percent factor.
(b) In all cases, the payment will be
determined based on the amount of
eligible upland cotton that an eligible
domestic user consumed during the
immediately preceding calendar month.
For the purposes of this subpart, eligible
upland cotton will be considered
consumed by the domestic user on the
date the bale is opened for
consumption, or if not baled, the date
consumed, without further processing,
in a continuous manufacturing process.
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50850
Federal Register / Vol. 75, No. 159 / Wednesday, August 18, 2010 / Rules and Regulations
Signed in Washington, DC, on August 11,
2010.
Jonathan W. Coppess,
Executive Vice President, Commodity Credit
Corporation.
[FR Doc. 2010–20352 Filed 8–17–10; 8:45 am]
BILLING CODE 3410–05–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 23
[Docket No. CE307; Special Condition No.
23–247–SC]
Special Conditions: AeroMech,
Incorporated; Hawker Beechcraft
Corporation, Model B200 and Other
Aircraft Listed in Table 1, Approved
Model List (AML); Installation of MD835
Lithium Ion Battery
Federal Aviation
Administration (FAA), DOT.
ACTION: Final special conditions.
AGENCY:
These special conditions are
issued for the AeroMech, Incorporated;
Hawker Beechcraft Corporation, model
B200 and other part 23 aircraft listed on
the AML. These airplanes as modified
by AeroMech, Incorporated will have a
novel or unusual design feature(s)
SUMMARY:
associated with installation of the MidContinent Instruments MD835 Lithium
Ion (Li-ion) battery. The applicable
airworthiness regulations do not contain
adequate or appropriate safety standards
for this design feature. These special
conditions contain the additional safety
standards that the Administrator
considers necessary to establish a level
of safety equivalent to that established
by the existing airworthiness standards.
DATES: Effective Date: August 9, 2010.
FOR FURTHER INFORMATION CONTACT:
James Brady, Regulations and Policy
Branch, ACE–111, Federal Aviation
Administration, Small Airplane
Directorate, Aircraft Certification
Service, 901 Locust, Kansas City, MO
64106; telephone (816) 329–4132;
facsimile (816) 329–4090.
SUPPLEMENTARY INFORMATION:
Background
On September 18, 2009, AeroMech,
Incorporated applied for a supplemental
type certificate AML for installation of
the Mid-Continent Instruments MD835
Li-ion battery in the Hawker Beechcraft
Corporation, B200 and other aircraft
listed on the AML. The AML covers part
23 aircraft that currently use the PS–835
lead-acid emergency battery.
The current regulatory requirements
for part 23 airplanes do not contain
adequate requirements for the
application of Li-ion batteries in
airborne applications. AeroMech,
Incorporated plans to replace an
existing L–3 Communications PS–835
lead-acid emergency battery with a MidContinent Instruments MD835 Li-ion
battery on part 23 aircraft currently
equipped with the PS–835 battery. This
type of battery possesses certain failure,
operational, and maintenance
characteristics that differ significantly
from that of the nickel cadmium (Ni-Cd)
and lead-acid rechargeable batteries
currently approved in other normal,
utility, acrobatic, and commuter
category airplanes.
Type Certification Basis
Under the provisions of § 21.101,
AeroMech, Incorporated must show that
the Hawker Beechcraft Corporation
B200 and other aircraft listed on the
AML, as changed, continues to meet the
applicable provisions of the regulations
incorporated by reference in the type
certificate of each model listed or the
applicable regulations in effect on the
date of application for the change. The
regulations incorporated by reference in
the type certificate are commonly
referred to as the ‘‘original type
certification basis.’’ The certification
basis for each model qualified for this
modification is detailed below.
TABLE 1—APPROVED MODEL LIST
Certification basis for
alteration
Aircraft model
TCDS
Aero Vodochody ................
Ae 270 ..........................................................................
A58CE Rev 3 ....................
Cessna ...............................
441 ................................................................................
A28CE ...............................
Cessna ...............................
401, 402, 411, 414, 421, 425 .......................................
A7CE .................................
Cessna ...............................
501, 551 ........................................................................
A27CE Rev 17 ..................
Cessna ...............................
525, 525A, 525B ...........................................................
A1WI Rev 17 .....................
Cessna ...............................
510 ................................................................................
A00014WI Rev 3 ...............
Dornier ...............................
228–100/–101/–200/–201/–202/–212 ...........................
A16EU ...............................
Embraer .............................
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Aircraft make
EMB–500 ......................................................................
A59CE Rev 0 ....................
Embraer .............................
EMB–110P1, EMB110P2 .............................................
A21SO Rev 6 ....................
Hawker Beechcraft ............
C90, C90A, C90GT, B90, E90, H90, C90GTi ..............
3A20 Rev 69 .....................
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14 CFR part 23 amdt
except for 14 CFR
23.1308.
14 CFR part 23 amdt
except for 14 CFR
23.1308.
14 CFR part 23 amdt
except for 14 CFR
23.1308.
14 CFR part 23 amdt
except for 14 CFR
23.1308.
14 CFR part 23 amdt
except for 14 CFR
23.1308.
14 CFR part 23 amdt
except for 14 CFR
23.1308.
14 CFR part 23 amdt
except for 14 CFR
23.1308.
14 CFR part 23 amdt
except for 14 CFR
23.1308.
14 CFR part 23 amdt
except for 14 CFR
23.1308.
14 CFR part 23 amdt
except for 14 CFR
23.1308.
23–59,
23–59,
23–59,
23–59,
23–59,
23–59,
23–59,
23–59,
23–59,
23–59,
]]>Agencies
[Federal Register Volume 75, Number 159 (Wednesday, August 18, 2010)]
[Rules and Regulations]
[Pages 50847-50850]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-20352]
=======================================================================
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DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
7 CFR Parts 1423 and 1427
RIN 0560-AH81
Cotton Program Changes for Upland Cotton, Adjusted World Price,
and Active Shipping Orders
AGENCY: Commodity Credit Corporation, USDA.
ACTION: Final rule, technical corrections.
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SUMMARY: CCC is amending a previous final rule that implemented the
2008 Farm Bill provisions for the cotton program. The correction
removes definitions that are no longer used concerning Northern Europe
prices for cotton. CCC is also making clarifying changes to the
regulations for the cotton program and for CCC-approved warehouses. CCC
is clarifying the payment calculation for upland cotton that is
eligible for the Economic Adjustment Assistance Program (EAAP) and
clarifying the definition of ``active shipping order.''
DATES: Effective Date: August 18, 2010.
FOR FURTHER INFORMATION CONTACT: Timothy Murray, Cotton Program
Manager, Commodity Operations Division, Farm Service Agency, USDA, Mail
Stop 0533, 1400 Independence Ave, SW., Washington, DC 20250-0572;
phone: (202) 720-2121; e-mail: tim.murray@wdc.usda.gov. Persons with
disabilities who require alternative means for communication (Braille,
large print, audiotape, etc.) should contact the USDA Target Center at
(202) 720-2600 (voice and TDD).
SUPPLEMENTARY INFORMATION: This rule makes three changes to the
regulations for the cotton program and to the regulations for CCC-
approved warehouses used for cotton. It removes obsolete definitions
from the regulations for cotton non-recourse loans and loan deficiency
payments. It clarifies the payment calculation for eligible upland
cotton to ensure that the EAAP meets the original purpose. It adds
definitions to the regulations for CCC-approved warehouses to clarify
the information that cotton warehouse operators must report to CCC.
[[Page 50848]]
Adjusted World Price--Removing Obsolete Definitions
CCC published a final rule in the Federal Register on November 5,
2008 (73 FR 65715-65724) implementing changes to the cotton program
required by the Food, Conservation, and Energy Act of 2008 (the 2008
Farm Bill, Pub. L. 110-246), including changes in the way the adjusted
world price for cotton is calculated for the purposes of CCC programs.
The final rule amended 7 CFR part 1427. That rule inadvertently did not
remove several terms that are no longer needed and accordingly, this
correcting amendment removes the terms ``Northern Europe current
price,'' ``Northern Europe forward price,'' and ``Northern Europe
price'' from Sec. 1427.3 because these terms are no longer used in
calculating the adjusted world price.
Because these terms are defined in 7 CFR part 1427, but not used in
any of the regulatory provisions in that part, this change should have
no impact on cotton producers or on CCC cotton programs.
Upland Cotton--Clarifying Eligible Cotton
The 2008 Farm Bill provides benefits to domestic users of upland
cotton through EAAP. EAAP provides a payment of four cents ($0.04) for
each pound of upland cotton consumed by an eligible user during the
period beginning on August 1, 2008, and ending on July 31, 2012.
Beginning on August 1, 2012, the value of the assistance provided will
be 3 cents per pound. As specified in 7 CFR 1427.101, the eligible
types of cotton for EAAP are baled lint, loose samples that have been
re-baled, semi-processed motes, and re-ginned (processed) motes.
Cotton motes are a byproduct of the cotton ginning process.
Typically, the motes (the waste product from the initial ginning
process) are run back through the gin to capture the residual cotton
fiber. In this process, while some usable fiber is recovered, a
substantial proportion of the waste product by weight is foreign
material, seeds, and non-usable plant parts. The motes are typically
reprocessed and cleaned several times before the resulting recovered
fiber is of a quality suitable for end use.
The purpose of EAAP is to pay users of upland cotton for usable
fiber, and not for foreign material, seeds, and non-usable plant parts.
There has been a sudden increase in the number of pounds of semi-
processed motes submitted for payment under EAAP raising concern about
the amount of the payment and to address that matter this rule amends
in the payment calculation for semi-processed and reginned motes in 7
CFR 1427.105.
This rule does not change the payment calculation for baled upland
cotton, including lint, loose samples, or reginned motes, that is used
without further processing. With respect, however, to unbaled reginned
motes used in a continuous manufacturing process, the payment will be
determined based on the weight of the reginned motes after final
cleaning. It specifies that for semi-processed motes that are of a
quality suitable, without further processing, for spinning, paper, or
non-woven cotton fabric, the payment will be calculated on 25 percent
of the weight (gross weight minus the weight of baling and ties, if
baled). This is the consistent with the payment calculations and with
market discounts. The discounts provide a reasonable measure for
converting cotton-from-motes to the normal baled cotton that is the
focus of the statute. Eliminating semi-processed motes entirely on the
grounds that the motes are not, because of their limited uses and their
nature, really ``cotton'' within the meaning of the statute was
considered. The 20 percent rule implemented in this rule was considered
to be a reasonable and proper compromise for treating semi-processed
motes as compensable cotton.
A parallel conforming change will be made to the Upland Cotton
Domestic User Agreement between CCC and participants in the EAAP. This
change will ensure that the EAAP payments are based on the amount of
upland cotton actually used for domestic production, and not for
unusable waste products.
CCC Warehouses--Clarifying Active Shipping Order
This rule clarifies what an ``active shipping order'' is because
the term is currently used although not defined in 7 CFR part 1423. To
clarify the term, this rule adds definitions for ``active shipping
order,'' ``early shipping order,'' and ``shipping order'' to Sec.
1423.3. As defined in this rule, early shipping orders and shipping
orders are types of active shipping orders. An active shipping order,
as defined in this rule, is an ``early shipping order or shipping
order, as defined in this section, scheduled for a current cotton
warehouse reporting week or for a prior reporting week, but not picked
up.'' An ``early shipping order'' is a list of bale tag numbers sent to
a cotton warehouse operator without transfer of warehouse receipts. A
shipping order is a list of bale tag numbers accompanied by the
transfer of warehouse receipts.
Operators of CCC-approved cotton warehouses asked for this
clarifying change, which relates to the information they are required
to report to CCC. This change should not result in any cost to CCC,
cotton producers, or the warehouse operators.
Notice and Comment
These regulations are exempt from the notice and comment
requirements of the Administrative Procedures Act (5 U.S.C. 553), as
specified in section 1601(c) of the 2008 Farm Bill, which requires that
these regulations be promulgated and administered without regard to the
notice and comment provisions of section 553 of title 5 of the United
States Code or the Statement of Policy of the Secretary of Agriculture
effective July 24, 1971 (36 FR 13804) relating to notices of proposed
rulemaking and public participation in rulemaking. Therefore, these
regulations are issued as final.
Executive Order 12866
The Office of Management and Budget (OMB) designated this final
rule as not significant under Executive Order 12866 and, therefore, OMB
has not reviewed this rule.
Regulatory Flexibility Act
This rule is not subject to the Regulatory Flexibility Act because
FSA is not required to publish a notice of proposed rulemaking for this
rule.
Environmental Review
The environmental impacts of this rule have been considered in a
manner consistent with the provisions of the National Environmental
Policy Act (NEPA, 42 U.S.C. 4321-4347), the regulations of the Council
on Environmental Quality (40 CFR parts 1500-1508), and FSA regulations
for compliance with NEPA (7 CFR part 799). The technical corrections
identified in this final rule do not change the structure or goals of
the program and are considered simply administrative in nature.
Therefore, FSA has determined that NEPA does not apply to this final
rule and no environmental assessment or environmental impact statement
will be prepared.
Executive Order 12372
This program is not subject to Executive Order 12372, which
requires intergovernmental consultation with State and local officials.
See the notice related to 7 CFR part 3015, subpart V, published in the
Federal Register on June 24, 1983 (48 FR 29115).
[[Page 50849]]
Executive Order 12988
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. This final rule is not retroactive and does not preempt
State or local laws, regulations, or policies unless they represent an
irreconcilable conflict with this rule. Before any judicial action may
be brought regarding provisions of this rule, the administrative appeal
provisions of 7 CFR parts 11 and 780 must be exhausted.
Executive Order 13132
The policies contained in this rule do not have any substantial
direct effect on States, on the relationship between the Federal
Government and the States, or on the distribution of power and
responsibilities among the various levels of government. Nor does this
rule impose substantial direct compliance costs on State and local
governments. Therefore, consultation with the States is not required.
Executive Order 13175
The policies contained in this rule do not have tribal implications
that preempt tribal law.
Unfunded Mandates
Title II of the Unfunded Mandate Reform Act of 1995 (UMRA, Pub. L.
104-4) requires Federal agencies to assess the effects of their
regulatory actions on State, local, or tribal governments or the
private sector. Agencies generally must prepare a written statement,
including a cost benefit analysis, for proposed and final rules with
Federal mandates that may result in expenditures of $100 million or
more in any 1 year for State, local, or tribal governments, in the
aggregate, or to the private sector. UMRA generally requires agencies
to consider alternatives and adopt the more cost effective or least
burdensome alternative that achieves the objectives of the rule. This
rule contains no Federal mandates as defined by Title II of UMRA for
State, local, or tribal governments or for the private sector. In
addition, FSA was not required to publish a notice of proposed
rulemaking for this rule. Therefore, this rule is not subject to the
requirements of sections 202 and 205 of UMRA.
Small Business Regulatory Enforcement Fairness Act of 1996
This rule is not a major rule under the Small Business Regulatory
Enforcement Fairness Act of 1996, (Pub. L. 104-121, SBREFA). Therefore,
FSA is not required to delay the effective date for 60 days from the
date of publication to allow for Congressional review and this rule is
effective on the date of publication in the Federal Register.
Paperwork Reduction Act
The regulations in this rule are exempt from requirements of the
Paperwork Reduction Act (44 U.S.C. Chapter 35), as specified in section
1601 of the 2008 Farm Bill, which provides that these regulations be
promulgated and administered without regard to the Paperwork Reduction
Act.
E-Government Act Compliance
FSA is committed to complying with the E-Government Act, to promote
the use of the Internet and other Information technologies to provide
increased opportunities for citizen access to Government Information
and services, and for other purposes.
List of Subjects
7 CFR Part 1423
Agricultural commodities, Honey, Oilseeds, Reporting and
recordkeeping requirements, Surety bonds, Warehouses.
7 CFR Part 1427
Cotton, Loan programs--agriculture, Price support programs,
Reporting and recordkeeping requirements, Warehouses.
0
For the reasons discussed above, this rule amends 7 CFR parts 1423 and
1427 as follows:
PART 1423--COMMODITY CREDIT CORPORATION APPROVED WAREHOUSES
0
1. The authority citation for part 1423 continues to read as follows:
Authority: 15 U.S.C. 714b and 714c.
0
2. Amend Sec. 1423.3 by adding, in alphabetical order, definitions for
``active shipping order,'' ``early shipping order,'' and ``shipping
order'' to read as follows:
Sec. 1423.3 Definitions.
Active shipping order means an early shipping order or shipping
order, as defined in this section, scheduled for a current cotton
warehouse reporting week or for a prior reporting week, but not picked
up.
* * * * *
Early shipping order means a list of bale tag numbers sent to a
cotton warehouse operator without transfer of warehouse receipts.
* * * * *
Shipping order means a list of bale tag numbers sent to a cotton
warehouse operator accompanied by transfer of warehouse receipts.
* * * * *
PART 1427--COTTON
0
3. The authority citation for part 1427 is revised to read as follows:
Authority: 7 U.S.C. 7231-7236 and 8737; and 15 U.S.C. 714b, and
714c.
Sec. 1427.3 [Amended]
0
4. Amend Sec. 1427.3 by removing the definitions for ``Northern Europe
current price,'' ``Northern Europe forward price,'' and ``Northern
Europe price.''
0
5. Amend Sec. 1427.105 as follows:
0
a. Revise paragraphs (a) and (b) to read as set forth below,
0
b. Remove paragraph (c), and
0
c. Redesignate paragraphs (d) and (e) as paragraphs (c) and (d).
Sec. 1427.105 Payment.
(a) Payments specified in this subpart will be determined by
multiplying the payment rate, as specified in Sec. 1427.104, by
(1) In the case of baled upland cotton, whether lint, loose samples
or reginned motes, but not semi-processed motes, the net weight of the
cotton used (gross weight minus the weight of bagging and ties);
(2) In the case of unbaled reginned motes consumed, without
rebaling, for an end use in a continuous manufacturing process, the
weight of the reginned motes after final cleaning; and
(3) In the case of semi-processed motes which are of a quality
suitable, without further processing, for spinning, papermaking, or
manufacture of non-woven cotton fabric, 25 percent of the weight (gross
weight minus the weight of bagging and ties, if baled) of the semi-
processed motes; provided further, that with respect to semi-processed
motes that are used prior to August 18, 2010, payment may be allowed by
CCC in its sole discretion at 100 percent of the weight as determined
appropriate for a transition of the program to the 25 percent factor.
(b) In all cases, the payment will be determined based on the
amount of eligible upland cotton that an eligible domestic user
consumed during the immediately preceding calendar month. For the
purposes of this subpart, eligible upland cotton will be considered
consumed by the domestic user on the date the bale is opened for
consumption, or if not baled, the date consumed, without further
processing, in a continuous manufacturing process.
* * * * *
[[Page 50850]]
Signed in Washington, DC, on August 11, 2010.
Jonathan W. Coppess,
Executive Vice President, Commodity Credit Corporation.
[FR Doc. 2010-20352 Filed 8-17-10; 8:45 am]
BILLING CODE 3410-05-P
