Disaster Designation Process, 41248-41256 [2012-17137]
Download as PDF
41248
Federal Register / Vol. 77, No. 135 / Friday, July 13, 2012 / Rules and Regulations
U.S. Office of Personnel Management.
John Berry,
Director.
Accordingly, the U.S. Office of
Personnel Management amends 5 CFR
part 532 as follows:
PART 532—PREVAILING RATE
SYSTEMS
1. The authority citation for part 532
continues to read as follows:
■
Authority: 5 U.S.C. 5343, 5346; § 532.707
also issued under 5 U.S.C. 552.
§ 532.279
[Removed]
■ 2. Remove § 532.279.
[FR Doc. 2012–17123 Filed 7–12–12; 8:45 am]
BILLING CODE 6325–39–P
DEPARTMENT OF AGRICULTURE
Farm Service Agency
7 CFR Parts 759 and 762
Rural Utilities Service
Rural Housing Service
Rural Business-Cooperative Service
Farm Service Agency
7 CFR Part 1945
RIN 0560–AH17
Disaster Designation Process
Farm Service Agency, Rural
Business-Cooperative Service, Rural
Housing Service, and Rural Utilities
Service, USDA.
ACTION: Final rule.
AGENCY:
The Farm Service Agency
(FSA) is revising its disaster designation
regulations, with minor changes from
the proposed rule. The rule simplifies
procedures for Secretarial designations
of disaster areas. This rule includes
provisions for nearly automatic disaster
designation in the case of severe
drought. The rule also provides
procedures FSA may use to delegate
disaster designation authority to FSA
State level officials. The rule removes
the requirement that a State Governor or
Indian Tribal Council must request a
Secretarial disaster designation before a
designation can be made. Also, this rule
moves the disaster designation
regulations to the same chapter of the
Code of Federal Regulations (CFR) as
the FSA Emergency Loan (EM) Program
regulations. FSA expects that the
simplified process will result in faster
tkelley on DSK3SPTVN1PROD with RULES
SUMMARY:
VerDate Mar<15>2010
16:29 Jul 12, 2012
Jkt 226001
designations of disaster areas, and result
in more timely disaster assistance.
DATES: This rule is effective on July 12,
2012.
FOR FURTHER INFORMATION CONTACT:
Steve Peterson; telephone: (202) 720–
7641. Persons with disabilities who
require alternative means for
communications (Braille, large print,
audio tape, etc.) should contact the
USDA Target Center at (202) 720–2600
(voice and TDD).
SUPPLEMENTARY INFORMATION:
Background
This final rule amends procedures for
designating counties as disaster areas.
Some USDA programs past and present,
administered by FSA have eligibility
criteria that include whether losses
occurred within a disaster area. For
example, the Secretary of Agriculture is
authorized to make emergency loans
available (7 U.S.C. 1961) to farmers
whose operations have been
substantially affected by a natural
disaster in a designated disaster county.
Disaster designations have been used to
qualify producers in those counties for
other programs, such as certain crop
disaster payment programs under past
legislation and it is possible that future
legislation will also tie program
eligibility to Secretarial designations.
The authority to make those
designations and administer the
designation system has been delegated
to FSA. Until now, FSA regulations
regarding the disaster designation
process were in 7 CFR part 1945.
On November 14, 2011, FSA
published a proposed rule to amend the
disaster designation regulations to
provide for changes in the designation
process (76 FR 70368–70374). In
general, that rule proposed to simplify
the disaster designation process and to
delegate the authority for designation to
the State level of FSA. It also proposed
to move the disaster designation
regulations from 7 CFR part 1945 to 7
CFR part 759. The latter (part 759) is in
a part of the CFR where there are
general regulations that apply to
multiple programs administered by
FSA. We received 18 comments during
the 60-day comment period.
Commenters included individuals, State
agencies, universities, FSA employees,
and producer associations. Almost all of
the comments supported the rule. Some
supporting comments asked for minor
clarifications or changes. The comments
opposing the rule included suggestions
that are beyond FSA’s authority, such as
a suggestion requiring State agencies to
participate in our disaster designation
process. In response to comments, we
PO 00000
Frm 00002
Fmt 4700
Sfmt 4700
are removing a proposed definition
because it is not actually used in the
other parts of the regulations, and we
are clarifying the Secretary’s delegation
authority in several respects with minor
changes to those in the proposed rule.
For example, some references to the
eligibility of contiguous counties are
amended to refer to the separate
regulations that apply to the disaster
assistance programs. The delegation
authority change clarifies that the
delegation authority for disaster
declarations may be delegated to the
State level of FSA but that such a
delegation is not automatic, or assumed,
but is discretionary and will require
specific delegation action. That is a
change from the proposed rule, which
proposed a delegation to the FSA State
level as the default procedure. There
were also a few comments asking for
clarification of internal FSA procedures.
We will provide clarification on internal
FSA procedures in the handbooks,
because we believe that in this instance
that is the appropriate location for the
level of detail about internal procedures
reflected in the comments. FSA
handbooks are available to the public.
This document first discusses the
disaster designation process as specified
in this rule, and then discusses our
responses to the comments received.
Except for the changes in response to
comments noted above (removing a
definition not used, changing delegation
of authority from a default process to an
optional process, and clarifying
contiguous county applicability), the
disaster designation process specified in
this rule is the same as in the proposed
rule.
Disaster Designation Process
Background
There are four types of disaster
determinations that can affect the
administration of benefits by FSA:
(1) USDA Secretarial disaster
designations,
(2) Presidential major disaster and
Presidential emergency declarations,
(3) FSA Administrator’s Physical Loss
Notifications, and
(4) Quarantine designations by the
Secretary under the Plant Protection Act
or animal quarantine laws as defined in
section 2509 of the Food, Agriculture,
Conservation and Trade Act of 1990
(referenced in 7 CFR part 761, which
includes a definition of ‘‘quarantine’’ in
accordance with 7 U.S.C. 1961).
FSA administers the making of USDA
Secretarial disaster designations. Those
declarations specify:
(1) The specific disaster that resulted
in the designation,
E:\FR\FM\13JYR1.SGM
13JYR1
tkelley on DSK3SPTVN1PROD with RULES
Federal Register / Vol. 77, No. 135 / Friday, July 13, 2012 / Rules and Regulations
(2) The incidence period (dates) of
that disaster, and
(3) The specific counties that are
included in the designation.
Of the four types of disaster
determinations listed above, the USDA
Secretarial disaster designation is the
one that most often impacts FSA
programs. Previously, its process was
the most complicated of the four. This
rule simplifies the process of making
those determinations.
This rule reduces the number of steps
in the process. Before, the process
required actions by the Secretary of
Agriculture, a State Governor or Indian
Tribal Council, FSA National office, the
FSA State Executive Director (SED),
FSA county offices, the County
Emergency Board (CEB), and the State
Emergency Board (SEB). This process
specified in this rule will in the most
complex case only require action by the
Secretary (or the Secretary’s designee),
the CEB, the SEB, and the SED. In the
case of a severe drought, it will only
require action by the Secretary (or the
Secretary’s designee). While the
Secretary retains the authority to make
any and all determinations, this rule
provides procedures for that
responsibility to be delegated to FSA at
the State level. If the Secretary chooses,
the SED will be delegated authority to
make the designation on behalf of the
Secretary, based on a recommendation
from the SEB. (The SED is the
chairperson of the SEB.) The Secretary
retains the authority and flexibility to
determine which SEDs will be delegated
authority and when.
The rule eliminates the requirement
that a request from a State Governor or
Indian Tribal Council is needed before
a disaster designation can be made.
Under this rule, an Indian Tribal
Council or Governor may still initiate a
request for designation to the County
Emergency Board (CEB), SEB, or
Secretary, but that request would no
longer be required to initiate the
process. In response to a request by a
Governor or Tribal Council for
information about pending potential
disaster designations with respect to a
specific disaster, the Secretary will
advise the Governor or Indian Tribal
Council(s) of any designation requests
that are under review in their State or
Tribal region. This rule also eliminates
the requirement for FSA National office
review of the information submitted by
the SEB to justify a disaster designation
for a county. However, the FSA National
office will perform spot check reviews.
This rule provides for a nearly
automatic designation of any county in
which drought conditions as reported in
the U.S. Drought Monitor (https://
VerDate Mar<15>2010
16:29 Jul 12, 2012
Jkt 226001
www.droughtmonitor.unl.edu) meet the
drought intensity value of at least D2
(Drought—Severe) for 8 consecutive
weeks in any portion of the county.
Further, any county that has a portion
of its area in a drought intensity value
of D3 (Drought—Extreme) or higher at
any time during the growing season of
the affected crops would be considered
a disaster area.
This rule also revises the definition of
‘‘natural disaster’’ to be consistent with
other existing FSA regulations that use
that term.
In addition to the substantive changes
to the disaster designation process, this
rule implements the provisions
specified in the proposed rule that
reorganize the disaster designation
regulations. This rule moves the disaster
designation regulations from 7 CFR part
1945 to 7 CFR part 759. This rule also
makes the clarifying changes that were
in the proposed rule, including changes
to remove internal FSA processes that
are not needed in the rule, but are
instead made in the handbook, where
they more properly belong. A
conforming change is made to amend 7
CFR part 762, ‘‘Guaranteed Farm
Loans,’’ to remove a reference to 7 CFR
part 1945 and replace it with a reference
to new part 759.
Discussion of Comments
The following provides a summary of
public comments received on the
proposed rule and FSA’s response,
including changes we are making in
response to the comments.
Definitions
Comment: Removing the list of
examples of unusual and adverse
weather conditions from the definition
of ‘‘natural disaster’’ could lead to
potential program abuse and fraud. It
would allow nearly any simple event
like a spring rain during hay cutting to
be considered a natural disaster.
Therefore, that change should not be
made. The definition and list of
examples should not be modified or
removed.
Response: The definition of ‘‘natural
disaster’’ in this rule adequately
describes a disaster as an unusual or
severe weather condition or other
natural phenomena that causes severe
losses. The definition in this rule is
consistent with other FSA regulations
that use that term. A list of examples
could be problematic if it was
interpreted to mean that only those
disaster conditions listed were possible
eligible disaster situations. In those
cases where the designation is not
automatic (that is, not based on
officially-published drought data), the
PO 00000
Frm 00003
Fmt 4700
Sfmt 4700
41249
rule provides an ample opportunity for
review. No change is made in response
to this comment.
Comment: The definition of CEB
should be amended to specify that local
Cooperative Extension agents or
educators who have responsibilities for
reporting the occurrence of a disaster,
assessing the extent of a disaster, and for
requesting approval in declaring a
county a disaster are included as
members of the CEB. Similarly, the term
SEB should likewise be amended to
include Cooperative Extension agents
having program responsibilities at the
State level.
Response: The CEB and SEB do
consider input from State and local
experts on local disaster conditions.
Extension agents can and do attend
meetings and provide input. However,
USDA does not have the authority to
require Extension agents or other local
non-federal partners to participate or
attend as members of the CEB or SEB.
Even if they were willing to participate,
the determination must remain within
USDA and it has been deemed best to
limit the CEB and SEB membership
accordingly. This will also assure
consistency in the makeup of the CEBs
and the SEBs. No change is made in
response to this comment.
Comment: FSA should include State
government agriculture and emergency
management agency representatives on
the SEB. They must receive
communications about disaster
designations, and must be allowed to
provide input on the approval process.
Response: FSA agrees that State level
persons who are engaged in work
related to identifying and reporting
disasters and other State or local
government work can provide valuable
information and input that a CEB or SEB
may consider in making a CEB or SEB
recommendation. Such representatives
are invited to attend and provide input.
However, as with the previous
comments, FSA believe that the actual
boards should be comprised of USDA
staff only. This is particularly with
respect to nonfederal persons as the
designation is a federal function. Also,
it is relevant to note that the boards are
not outside advisory boards and
therefore not subject to the special
procedures that can apply to such
organizations.
Comment: The definition of
contiguous county should be amended
to specify how rivers, lakes, and other
bodies of water are viewed. For
example, if counties are separated by a
large body of water (Lake Michigan), are
the counties on each side of the lake
contiguous?
E:\FR\FM\13JYR1.SGM
13JYR1
41250
Federal Register / Vol. 77, No. 135 / Friday, July 13, 2012 / Rules and Regulations
tkelley on DSK3SPTVN1PROD with RULES
Response: The definition of
‘‘contiguous county’’ already provides
for the inclusion of a county whose
boundary touches a ‘‘primary county.’’
The rule makes no distinction for
boundaries that touch in water, and is
not defining county boundaries in a
different way than those boundaries are
legally defined by States and local
jurisdictions. In the past, counties on
each side and separated by a wide body
of water, such as Lake Michigan or the
Pacific Ocean, have not been viewed as
contiguous by USDA because the legal
boundaries of those counties are not
contiguous. No change in the definition
is necessary.
Comment: The definition of
‘‘production losses (severe)’’ needs to be
clarified because it is unclear whether
production losses include physical
losses. If the intention is to limit
production losses to only losses of
production, the definition should state
that physical losses are not included.
There is a difference between physical
and production losses resulting from
natural disaster.
Response: In the context of the rule
‘‘physical losses’’ means losses to a
building or to stored goods and the like.
Production losses—losses of growing
crops—as defined in this rule do not
include physical losses. The definition
of ‘‘production losses (severe)’’ is clear
that a loss of at least 30 percent or more
of at least one crop (not property or
things included in the rule’s definition
of physical losses) is a severe
production loss for purposes of the rule.
FSA does not believe that either the
definition of production losses (severe)
or the definition of severe physical
losses require further amendment or
clarification.
Comment: The definition for ‘‘normal
year’s dollar value’’ is unnecessary as
the term is not used in the rule.
Additionally, the definition is in
conflict with other FSA regulations.
Response: In response to this
comment, the proposed definition has
been removed and is not in this final
rule.
Disaster Area Determination and
Notification Process
Comment: Of the methods in § 759.5
for declaring a disaster (automatic
process for drought, SEB
recommendation, production losses of
at least 30 percent, and Secretarial
discretion for exceptions), only that in
paragraph (b) (regarding
recommendations by CEBs and SEBs),
seems to require review by the FSA
Deputy Administrator for Farm
Programs. If the intent is not to use the
method in paragraph (b) most of the
VerDate Mar<15>2010
16:29 Jul 12, 2012
Jkt 226001
time, but always use the other more
lenient methods whenever possible,
then there is no point in having that
method, so paragraph (b) should be
removed.
Response: The CEB and SEB criteria
requires the finding of a 30 percent
production loss and will likely be the
most used option. By nature, those
recommendations require review of
some kind and therefore the rule
provides for review by the Deputy
Administrator. However, the rule allows
for delegation of that review to the SED.
Any SED disaster designation action
may be reviewed by the Deputy
Administrator for Farm Programs
(DAFP) as appropriate. The special
discretion for special cases where
production losses are not at least 30
percent or where the automatic drought
criteria are not met is intended for
special cases only. We think that the
review provisions are necessary and
appropriate to assure as much
consistency as possible. No change is
made in response to this comment.
Comment: USDA should notify
Governors and State personnel when it
receives a request for a designation from
a CEB. It is important for Governors and
States to have real time knowledge of
agricultural disaster information and to
ensure effective coordination and
sharing of information. FSA should also
notify Governors and State personnel
when a disaster declaration is about to
be made, before the general publication
notification is made by USDA.
Response: FSA will provide that
notice when requested once the disaster
has occurred with respect to
designations for that particular disaster.
Because of the streamlined procedures
and the desire for a quick determination
where such a determination is
warranted and possible, FSA does not
anticipate that every Governor and State
personnel will ask for pre-notification.
FSA will amend internal operating
guidelines and handbooks to provide
procedures for responding to requests
for information about pending disaster
designations from interested parties,
including Governors and Tribal
Councils. The procedure will be in the
handbooks and internal guidelines
rather than in the rule.
Comment: The CEB does not meet
regularly and in most cases the FSA
County Executive Director (CED)
compiles the information necessary for
supporting designation requests.
Recommend making CEB
interchangeable with the CED.
Response: FSA recognizes the
valuable contribution by the CED in
obtaining the information that will be
used by a CEB or SEB to recommend the
PO 00000
Frm 00004
Fmt 4700
Sfmt 4700
disaster designation. However, the CEB
is comprised of representatives of
several USDA agencies, including but
not limited to FSA, that have
responsibilities for reporting disasters
and assessing the resulting damage
caused. It provides a valuable
coordination function between USDA
agencies. CEB will meet as needed to
promptly implement the procedures in
this rule. No change is made to the rule
in response to this comment.
Comment: The regulation does not
specify how information required by the
CEB and SEB is collected and
documented. There should be more
specifics about what is required. For
example, GIS maps should be required
for all disaster designation requests, not
just for drought.
Response: The proposed rule provides
procedure for the nearly automatic
designations based on the Drought
Monitor as well as the reliance upon the
Loss Assessment Report (LAR) for those
designation requests not meeting the
automatic designation criteria.
Information from which a LAR can be
developed or produced can come from
various sources. FSA does not intend to
restrict or mandate the sources of
information that may be considered by
a CEB or SEB in assessing losses.
However, FSA will issue internal
operating guidelines that will provide
instructions regarding necessary
information and documentation that
will be necessary to support
recommendations. In the case of
drought, the process will be nearly
automatic, based on documentation
provided by the Drought Monitor itself.
We say ‘‘nearly’’ automatic because of
the function that will be performed by
FSA to identify eligible counties from
the official reports and to prepare the
notice. No change is made to the rule in
response to this comment, but the
subject matter will be addressed in FSA
handbooks.
Comment: The streamlined automatic
designation process for drought could
create designations for multiple
counties in times of regional disasters.
That could be confusing and cause
disaster designations when one is not
appropriate because the entire county
was not impacted.
Response: A disaster declaration is
not the only eligibility requirement for
FSA disaster assistance programs that
depend on a declaration. Most also
require some threshold of documented
losses. While it is possible that a
drought will not impact an entire
county that has been declared a disaster,
in that case the producers in the county
who were not impacted will be unlikely
to meet the other criteria for benefit
E:\FR\FM\13JYR1.SGM
13JYR1
tkelley on DSK3SPTVN1PROD with RULES
Federal Register / Vol. 77, No. 135 / Friday, July 13, 2012 / Rules and Regulations
eligibility. The rules for designating a
county as a disaster area when
requirements are met based on
information that may only be applicable
to part of the county are not being
modified by this rule. Generally, there is
no requirement that the peril or perils
that cause a county to be designated a
disaster area have impacted all or most
of a county. The authorizing legislation
for FSA programs that rely on disaster
designations consistently refer to county
level disaster declarations, with no
provisions to make designations for
smaller areas. Furthermore, even if a
more discrete declaration were
permitted, attempting to identify
specific affected locations within a
county would be time-consuming,
uncertain, and would slow the process
of making aid available without a
justifiable and substantial
countervailing benefit. Individual
producers must still establish their loss
and must establish that it is related to
the disaster. No change is made in
response to this comment.
Comment: In the case of drought, the
regulation should specify that when
large areas of a State are impacted,
counties affected should be combined as
much as possible. The regulations
should permit the SED to combine
declarations, even if that means a 30- to
60-day delay until the data from the
additional counties are known. That
would make the disaster response
process easier for States.
Response: The current regulations
permit a disaster declaration that
includes multiple counties. That is not
changing with this rule. However, in the
case of a drought, the Secretary will
designate that area a disaster area when
the drought intensity threshold is met,
without waiting to see if nearby
counties reach the severe or extreme
drought threshold. We see no persuasive
point in delaying the process to see if
other counties qualify. No change is
made in response to this comment.
Comment: The Drought Monitor is a
valid tool; however, the problem is
defining the line location for the
drought area as it relates to a whole
county. There may be instances where
the Drought Monitor may accurately
show that a small percent of a county
has suffered due to drought; however,
based on that data, an entire county may
get the designation (based on drought).
Recommend the CEB or CED determine
if drought monitor conditions are
reflective of conditions for the county
and not just for the location of the
monitor.
Response: As specified in § 759.5(a) of
this rule, a loss assessment report (LAR)
developed by the CEB is not required for
VerDate Mar<15>2010
16:29 Jul 12, 2012
Jkt 226001
disaster designation in the case of severe
drought. Also, as noted above, a disaster
declaration is not the only eligibility
requirement for most FSA disaster
assistance programs, and the
authorizing legislation for FSA
programs that rely on disaster
designations consistently refer to county
level disaster declarations, with no
provisions to make designations for
smaller areas. No change is made in
response to this comment.
Comment: The rule is unclear how an
individual farmer, State Governor,
Indian tribal council, or local governing
body will initiate a request for
designation.
Response: Anyone can contact the
Secretary or FSA and request a
designation using any means, including
a phone call, letter, or email, to report
production losses or drought conditions
to the CEB, as specified in this rule in
§ 759.5. Time and prudent
considerations may govern how that
contact is made. In any case, we do not
believe that it is necessary to specify the
method of contact in the rule itself to
allow flexibility.
Comment: If anyone can request a
disaster designation, this could greatly
increase the workload for local staff.
Recommend keeping the requirement
for a request by the Governor or Indian
Tribal Council.
Response: The benefits to producers
of allowing anyone to report losses,
facilitating a more expedited disaster
designation process, outweigh any
perceived or alleged increases in
workload.
Comment: The new process will be
more objective for drought. In the past,
it was possible that some people could
try to use undue influence to force the
CEB to request a disaster even though
conditions may not warrant a countywide declaration process. What is being
done to ensure that will not happen
with the new process?
Response: The general drought
authority will rely on published reports.
Where the CEB is involved in the
process, there will be review of the
disaster recommendation by the SEB
and by the Secretary’s designee. We
believe that the provisions for review
are sufficient and persons concerned
about any disaster declaration are
always free to make that feeling known
to generate greater review in particular
cases. No change is made in response to
this comment.
Comment: Governors or Indian tribal
councils should have to seek
designations. State governments and
Indian tribal councils should not be
removed from the process. A State may
not want a designation approved. The
PO 00000
Frm 00005
Fmt 4700
Sfmt 4700
41251
drought might not be as severe as the
Drought Monitor makes it seem, and a
disaster declaration could scare away
tourists.
Response: USDA has the
responsibility to designate disasters
using consistent criteria for the entire
nation, so that producers in all States
and counties have an opportunity to be
eligible for disaster assistance if they
suffered losses in a disaster area. No
change is made in response to this
comment.
Comment: The proposed designation
process could compromise the integrity
of the designation process by removing
safeguards realized with a National
review of designation requests. By
removing the FSA National office
review by impartial reviewers,
politically appointed SEDs will be
under increasing pressure to approve
disaster designations, perhaps wrongly.
Response: The FSA National office
will still be responsible for oversight
and spot check of the process as needed
and we believe that the opportunity for
review in the regulations is sufficient.
Also, as indicated, problems with
individual determination can always be
raised to generate additional review. In
this rule, § 759.5 specifies that if the
Secretary so chooses, authority may be
delegated to make the designation at the
State level, but that delegation is not
automatic. At the State level, the SED
may act based on a recommendation
from the SEB. Such delegations may be
limited to particular disasters. Section
759.6 has also been changed from the
proposed rule to remove proposed
language referring to a disaster
designation made by the SED to reflect
that there must be a specific delegation
as no SED is empowered by the
regulations themselves to make the
designation.
Comment: Keep the old more complex
process. Simplifying the process will
result in more fraud, increasing the total
government deficit.
Response: As noted above, the FSA
National office will conduct spot checks
of disaster designations to ensure
program integrity. The revised process
is expected to result in faster disaster
designations, but not more eligible
disaster designations, as the rule does
not materially change the conditions
under which a designation could be
made.
Comment: Need clarification on the
discretionary exceptions from the
definition of production losses 7 CFR
1945.6(c)(3)(iii)(C). Are they being
removed? The previous definition
allowed a disaster declaration if
production losses have not met the 30
percent loss threshold, but other
E:\FR\FM\13JYR1.SGM
13JYR1
tkelley on DSK3SPTVN1PROD with RULES
41252
Federal Register / Vol. 77, No. 135 / Friday, July 13, 2012 / Rules and Regulations
conditions exist, including producers
unable to get financing. According to
the table in the preamble to the
proposed rule, and the proposed new
definition of production losses, it looks
like the discretionary exceptions for
production losses are removed from the
definition section. Does that mean that
the lack of getting a lender to finance is
no longer included in the definition of
production losses, and that we will be
unable to obtain a disaster declaration
based on financial hardship?
Response: This rule does not remove
the provisions allowing the Secretary
discretionary authority to declare a
disaster even if the 30 percent
production loss threshold has not been
met. The discretionary exception
provisions have been moved, not
removed. The discretionary authority
disaster designation process is specified
in § 759.5, rather than in the definitions
section. It includes the number of
farmers unable to obtain emergency
financing as one of the factors the
Secretary may consider in determining
whether to use this discretionary
authority. This rule does not modify EM
procedures or policies. No change is
made in response to this comment.
Comment: The current designation
process enables a Governor to best
manage an agricultural disaster,
including taking the necessary steps
within the State in determining how
and where the State is best served by
seeking Federal relief through a disaster
designation. Do not take the Governors
out of the process. If each county has to
independently advocate relief, the larger
counties with more resources will be
able to more vigorously and
expeditiously make disaster designation
requests, at the expense of more rural
counties. This would not be fair, and
would disable the Governor’s ability to
prioritize statewide needs.
Response: The simplified and
streamlined process does not remove
authority of Governors to seek
designations for any of the counties
located in their respective State. The
proposed rule also does not prohibit a
Governor from taking any State level
action in response to whatever concerns
or needs that might arise following an
emergency. In fact, the expedited
designation process should be able to
assist all localities with a faster disaster
designation process. Local emergency
response resources and their
distribution are outside the scope of this
rule. FSA will designate counties based
on factual information about disaster
conditions in counties large and small.
No change is made in response to this
comment.
VerDate Mar<15>2010
16:29 Jul 12, 2012
Jkt 226001
Comment: What if the same disaster
causes both production and physical
losses? Does the rule mean that both a
Secretarial declaration and an
Administrator’s declaration of physical
loss would be required in that case? If
so, that seems more complicated, not
less complicated, than the current
procedure.
Response: As specified in this rule in
§ 759.6, the Administrator’s declaration
of physical loss process is used when
only physical losses occur. When both
production and physical losses occur,
the Secretarial disaster designation
process is used. No change is made in
response to this comment.
Comment: Eliminate the Presidential,
Secretarial, and Administrator
designations processes for the FSA EM
and the FSA Supplemental Revenue
Assistance Payments (SURE) Program.
The current process is complicated and
time consuming. Proposed rule is
unclear if there will be any reduction of
paperwork or other time requirements
on county FSA offices. The rule does
not appear to have very many benefits
for individual producers.
Response: USDA does not have
authority to modify the disaster
designation eligibility requirements for
the SURE (should it be reauthorized) or
EM program because these requirements
are specified in authorizing laws. The
streamlined process of processing
requests for designations should benefit
producers by providing disaster benefits
more quickly. No change is made in
response to this comment.
General Comments
Comment: USDA should consider
increasing the maximum income levels
for benefit eligibility to allow farmers
and ranchers in high cost areas to take
advantage of more FSA program
benefits.
Response: USDA does not have
authority to change the adjusted gross
income provisions that apply to FSA
program benefit eligibility to the extent
that they are mandated by law and in
other instances use of those provisions
may help target benefits to those whose
need is the greatest. In any event, this
comment and issue are outside the
scope of this rule. No change is made in
response to this comment.
Comment: Benefits for adjoining
counties should be discontinued to help
reduce potential fraud or less than
credible claims. Disaster designations
should only apply to the county and not
other adjoining areas.
Response: The proposed rule was
meant to address only the process by
which designations are made and hence
this comment goes beyond the scope of
PO 00000
Frm 00006
Fmt 4700
Sfmt 4700
this rule. The program specific rules
include contiguous counties when
specifically authorized for that program
by law. However, some additional
language has been added to clarify that
the rules about contiguous counties
should be resolved by the regulations
particular to each program. That said,
the designation regulations have
traditionally carried provisions dealing
with that issue specifically for the EM
program and this rule continues that
practice. As some point we will
consider moving the substantive EM
provisions to the EM regulations
themselves. The EM regulations are
found in 7 CFR part 764. The EM
regulations require a disaster as a
predicate for an EM loan and under the
general definitions in 7 CFR part 761 a
‘‘disaster’’ requires an FSA designation.
This rule specifies that the FSA
designation will include not only those
that involve a Secretarial designation
under these rules but the EM Program
will also consider as designated
counties eligible to trigger EM loans
those counties that are the subject of the
other kinds of disaster determinations
noted above. The provisions addressing
EM qualifications appear in 7 CFR 759.6
of the regulations adopted in this rule.
To avoid confusion, 7 CFR part 759 as
clarified in this rule will specify that
unless otherwise indicated in the
regulations for the actual benefit
program, or in 7 CFR 759.6, for purpose
of administering disaster assistance only
the primary county will be considered
the disaster county. That is, producers
in the contiguous county will only be
able to qualify for disaster assistance if
the disaster assistance regulations or, in
the case of EM, 7 CFR 759.6, provide for
such eligibility. This is consistent with
long-standing practice, and provisions
in authorizing laws, and involves no
change in policy.
Comment: The more timely
designations may place an even greater
burden on local governments who have
limited staff to help with disaster
response and the recovery process.
Response: This rule does not require
any specific action by a local
government to assist with USDA’s
disaster designation process. In fact, it
removes the requirement for a request
for disaster designation by the Governor
or Tribal Council. The more rapid
designation of disasters should help
identify where response is most
urgently needed, allowing local
governments to focus resources on
where it is needed the most. No change
is made in response to this comment.
E:\FR\FM\13JYR1.SGM
13JYR1
Federal Register / Vol. 77, No. 135 / Friday, July 13, 2012 / Rules and Regulations
Miscellaneous Change
This rule also removes the
abbreviation for NASS, the USDA
National Agricultural Statistics Service,
which only appeared in a definition in
the proposed rule that is not included
in this final rule.
Effective Date
The administrative procedure
provisions in 5 U.S.C. 553(d) require
that a substantive rule be published
‘‘not less than 30 days before its
effective date.’’ As specified in 5 U.S.C.
553(d), exceptions to the 30-day post
publication effective period include: (1)
A substantive rule which grants or
recognizes an exemption or relieves a
restriction; (2) interpretative rules and
statements of policy; and (3) as
otherwise provided by the agency for
good cause found and published with
the rule. Here, however, the substance
of this final rule was published in the
proposed rule that was published more
than 30 days prior to the publication of
this final rule. Moreover, even if that
should not be deemed to suffice, FSA
finds that all of the exceptions apply. In
fact, the rule relieves restrictions that
the Secretary had placed on USDA’s
own internal processes, policy, and
rules in order to expedite and make
more efficient timely designations. Also,
this rule makes substantive changes
only with respect to USDA’s own
operations and thus involves matters of
agency policy not of regulations in the
normal sense. This rule accordingly
involves, in terms of its changes, an
agency statement of policy. Further, this
rule will, with no negative
countervailing considerations, provide a
benefit to the public by providing more
timely disaster relief. For that reason,
any delay in implementing this rule is
in the opinion of the agency, contrary to
the public interest. Accordingly, this
rule is made effective immediately upon
filing for public inspection.
The Office of Management and Budget
(OMB) designated this rule as not
significant under Executive Order 12866
and, therefore, OMB has not reviewed
this final rule.
Regulatory Flexibility Act
The Regulatory Flexibility Act (5
U.S.C. 601–612), as amended by the
Small Business Regulatory Enforcement
Fairness Act of 1996 (SBREFA),
generally requires an agency to prepare
a regulatory flexibility analysis of any
rule subject to the notice and comment
rulemaking requirements under the
Administrative Procedure Act (5 U.S.C.
553) or any other statute, unless the
agency certifies that the rule will not
have a significant economic impact on
a substantial number of small entities.
FSA has determined that this rule will
not have a significant impact on a
substantial number of small entities.
New provisions of this rule will not
impact a substantial number of small
entities to a greater extent than large
entities. FSA anticipates that the rule
will not require submission of any
additional information by the public. It
is expected to be revenue neutral,
neither increasing nor decreasing
benefits for producers as a whole.
Therefore, FSA certifies that this rule
will not have a significant economic
impact on a substantial number of small
entities.
tkelley on DSK3SPTVN1PROD with RULES
Executive Order 12866 and 13563
Environmental Review
FSA has determined that these
changes would not constitute a major
Federal action that would significantly
affect the quality of the human
environment. Therefore, in accordance
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), no environmental
assessment or environmental impact
statement will be prepared.
Executive Order 12866, ‘‘Regulatory
Planning and Review,’’ and Executive
Order 13563, ‘‘Improving Regulation
and Regulatory Review,’’ direct agencies
to assess all costs and benefits of
available regulatory alternatives and, if
regulation is necessary, to select
regulatory approaches that maximize
net benefits (including potential
economic, environmental, public health
and safety effects, distributive impacts,
and equity). Executive Order 13563
emphasized the importance of
quantifying both costs and benefits, of
reducing costs, of harmonizing rules,
and of promoting flexibility.
Executive Order 12372
Executive Order 12372,
‘‘Intergovernmental Review of Federal
Programs,’’ requires consultation with
State and local officials. The objectives
of the Executive Order are to foster an
intergovernmental partnership and a
strengthened Federalism, by relying on
State and local processes for State and
local government coordination and
review of proposed Federal Financial
assistance and direct Federal
development. This rule neither provides
Federal financial assistance or direct
Federal development; it does not
provide either grants or cooperative
VerDate Mar<15>2010
16:29 Jul 12, 2012
Jkt 226001
PO 00000
Frm 00007
Fmt 4700
Sfmt 4700
41253
agreements. Therefore, this rule is not
subject to Executive Order 12372.
Executive Order 12988
This rule has been reviewed in
accordance with Executive Order 12988,
‘‘Civil Justice Reform.’’ This rule
preempts State and local laws,
regulations, or policies that are in
conflict with the provisions of this rule.
The rule will not have retroactive effect.
Executive Order 13132
This rule has been reviewed under
Executive Order 13132, ‘‘Federalism.’’
As this rule does not require any action
by any State, the policies contained in
this rule do not have any substantial
direct effect on States, the relationship
between the Federal government and
the States, or the distribution of power
and responsibilities among the various
levels of government. Nor does this final
rule impose substantial direct
compliance costs on State and local
governments. Therefore, consultation
with the States is not required.
Executive Order 13175
This rule has been reviewed for
compliance with Executive Order
13175, ‘‘Consultation and Coordination
with Indian Tribal Governments.’’ This
Executive Order imposes requirements
on the development of regulatory
policies that have Tribal implications or
preempt Tribal laws. The USDA Office
of Tribal Relations has concluded that
the policies contained in this rule do
not, to our knowledge conflict with any
Tribal law and therefore does not
preempt Tribal law. Were there a
conflict, the provisions of the
regulations would prevail as far as
administering the federal programs that
are affected by the rule.
Before publishing the proposed rule,
FSA consulted with the USDA Office of
Tribal Relations and has concluded that
this rule will not, to our knowledge,
have a substantial direct effect on Indian
tribes and no formal Tribal consultation
under E.O. 13175 is required. FSA will
conduct an informational forum
(telephone call or webinar) to answer
questions about this rule from all
interested Indian Tribes soon after this
rule has been published.
The Unfunded Mandates Reform Act of
1995
Title II of the Unfunded Mandates
Reform Act of 1995 (UMRA, Pub. L.
104–4) requires Federal agencies to
assess the effects of their regulatory
actions on State, local, and Tribal
governments or the private sector.
Agencies generally must prepare a
written statement, including a cost
E:\FR\FM\13JYR1.SGM
13JYR1
41254
Federal Register / Vol. 77, No. 135 / Friday, July 13, 2012 / Rules and Regulations
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 final rule contains no Federal
mandates, as defined under title II of the
UMRA, for State, local, and Tribal
governments or the private sector. Thus,
this proposed rule does not trigger the
requirements of sections 202 and 205 of
UMRA.
Paperwork Reduction Act of 1995
The amendments in this final rule
require no revision to the information
collection that was previously approved
by OMB under control number 0560–
0170. Although this rule streamlines the
disaster designation process, including
removing the requirement for a State
Governor or Indian Tribal Council to
initiate a request for a Secretarial
disaster designation, it does not prohibit
that action and may therefore not result
in a reduction in burden hours. Any
change in burden hours will be
documented in the next information
collection request.
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.
Federal Assistance Program
These changes affect the following
FSA program listed in the Catalog of
Federal Domestic Assistance:
10.404—Emergency Loans
List of Subjects
7 CFR Part 759
Administrative practice and
procedure, Agriculture, Authority
delegations, Disaster assistance, Loan
programs—Agriculture, Reporting and
recordkeeping requirements.
tkelley on DSK3SPTVN1PROD with RULES
7 CFR Part 762
Agriculture, Credit, Loan programs—
Agriculture.
7 CFR Part 1945
Agriculture, Disaster assistance, Drug
traffic control, Loan programs—
Agriculture, Reporting and
recordkeeping requirements.
For the reasons discussed above, FSA
adds 7 CFR part 759, amends 7 CFR part
VerDate Mar<15>2010
16:29 Jul 12, 2012
Jkt 226001
762, and under the authority of 7 U.S.C.
1989, removes 7 CFR part 1945 as
follows:
CHAPTER VII—FARM SERVICE AGENCY,
DEPARTMENT OF AGRICULTURE
1. Add a new part 759 to read as
follows:
■
PART 759—DISASTER DESIGNATIONS
AND NOTIFICATIONS
Sec.
759.1 Administration.
759.2 Purpose.
759.3 Abbreviations and definitions.
759.5 Secretarial disaster area
determination and notification process.
759.6 EM to be made available.
Authority: 5 U.S.C. 301, 7 U.S.C. 1961 and
1989.
§ 759.1
Administration.
(a) This part will be administered
under the general supervision and
direction of the Administrator, Farm
Service Agency (FSA).
(b) FSA representatives do not have
authority to modify or waive any of the
provisions of the regulations of this part
as amended or supplemented.
(c) The Administrator will take any
action required by the regulations of this
part that the Administrator determines
has not already been taken. The
Administrator will also:
(1) Correct or require correction of any
action taken that is not in accordance
with the regulations of this part; or
(2) Require withholding taking any
action that is not in accordance with
this part.
(d) No provision or delegation in
these regulations will preclude the
Administrator or a designee or other
such person, from determining any
question arising under this part, or from
reversing or modifying any
determination made under this part.
(e) Absent a delegation to the
contrary, this part will be administered
by the Deputy Administrator for Farm
Programs of FSA on behalf of the
Administrator of FSA or the Secretary,
but nothing in this part will inhibit the
ability of the Administrator of FSA or
the person holding the equivalent
position in the event of a reorganization
to delegate the functions of DAFP under
these regulations to another person.
Likewise, nothing shall inhibit the
ability of the Secretary to reassign any
duties with respect to the designations
of disasters under this part.
§ 759.2
Purpose.
(a) This part specifies the types of
incidents that can result in an area being
determined a disaster area, which under
other regulations makes qualified
PO 00000
Frm 00008
Fmt 4700
Sfmt 4700
farmers in such areas eligible for
Emergency loans (EM) or eligible for
such other assistance that may be
available, based on Secretarial disaster
designations. Nothing in this part
overrides provision of those regulations
that govern the actual administration
and availability of the disaster
assistance regulations.
(b) This part specifies the
responsibility of the County Emergency
Board (CEB), State Emergency Board
(SEB), and the State Executive Director
(SED) in regard to Secretarial
Designations with regards to disasters. It
also addresses matters relating to the
handling of a Presidential declaration of
disaster or the imposition of a USDA
quarantine by the Secretary with respect
to triggering the availability of EM
loans.
§ 759.3
Abbreviations and definitions.
(a) Abbreviations. The following
abbreviations apply to this part.
CEB means the County Emergency
Board.
CED means the County Executive
Director.
DAFP means the Deputy
Administrator for Farm Programs of the
Farm Service Agency.
EM means Emergency loan
administered under 7 CFR part 764.
FSA means the Farm Service Agency.
LAR means the Loss Assessment
Report.
SEB means the State Emergency
Board.
SED means the State Executive
Director.
USDA means the United States
Department of Agriculture.
(b) Definitions. The following
definitions apply to this part.
Administrator means the
Administrator of FSA.
Contiguous county is used in
reference to a primary county as defined
in this section. A contiguous county is
any county whose boundary touches at
any point with that of the primary
county. For programs other than the EM
Program, disaster assistance regulations
will specify whether benefits will be
available only in the primary counties
or also in the contiguous counties. For
the EM Program that issue is addressed
in § 759.6, unless specified otherwise in
the disaster assistance regulations for
other programs or in § 759.6 for the EM
Program, only the ‘‘primary’’ county
will be considered the qualifying
‘‘disaster county.’’ Therefore, if the
disaster assistance regulations specify
that they cover the disaster area and
contiguous counties, then the only
eligible counties would be the primary
county and those contiguous to that
E:\FR\FM\13JYR1.SGM
13JYR1
tkelley on DSK3SPTVN1PROD with RULES
Federal Register / Vol. 77, No. 135 / Friday, July 13, 2012 / Rules and Regulations
county. Coverage would not include
coverage of those counties that are in
turn contiguous to those counties that
are contiguous to the primary county.
County is used when referring to a
geographical area, a local administrative
subdivision of a State or a similar
political subdivision of the United
States generally considered to be in
county usage, for example, it includes
an area referred to as a ‘‘county’’ or
‘‘parish.’’ Except where otherwise
specified, the use of the term county or
similar political subdivision is for
administrative purposes only.
CEB is comprised of the
representatives of several USDA
agencies that have responsibilities for
reporting the occurrence of, and
assessing the damage caused by, a
natural disaster, and for requesting
approval in declaring a county a disaster
area.
CED is the person in charge of
administering the local FSA county
office for a particular county.
Disaster area is the county or counties
declared or designated as a disaster area
as a result of natural disaster related
losses. The disaster area only includes
the primary counties, but benefits may
be available in the counties contiguous
to the primary county if so provided by
the disaster assistance regulations or, in
the case of the EM Program, in § 759.6.
LAR is a loss assessment report
prepared by the CEB relating to the State
and county where the potential disaster
occurred and for which county or
counties the CEB is responsible. The
LAR includes as applicable, but is not
limited to, starting and ending dates of
the disaster, crop year affected, type of
disaster incident, area of county affected
by disaster; total number of farms
affected, crop loss or pasture loss data
associated with the applicable disaster
(or both types of losses), livestock
destroyed, and other property losses.
Natural disaster is a disaster in which
unusual and adverse weather conditions
or other natural phenomena have
substantially affected farmers by causing
severe physical losses, severe
production losses, or both.
Primary county is a county
determined to be a disaster area.
Presidential declaration is a
declaration of a disaster by the President
under the Robert T. Stafford Disaster
Relief and Emergency Assistance Act
(42 U.S.C. 5121–2) requiring Federal
emergency assistance to supplement
State and local efforts to save lives and
protect property, public health and
safety, or to avert or lessen the threat of
a disaster.
Production losses (severe) within a
county are those in which there has
VerDate Mar<15>2010
16:29 Jul 12, 2012
Jkt 226001
been a reduction county-wide of at least
a 30 percent or more loss of production
of at least one crop in the county.
SEB means the State Emergency
Board which is comprised of the
representatives of several USDA
agencies having emergency program
responsibilities at the State level. The
board is required to respond to
emergencies and carry out the
Secretary’s emergency preparedness
responsibilities.
SED is the person who serves as the
Chairperson of the USDA SEB in each
State, is responsible for providing the
leadership and coordination for all
USDA emergency programs at the State
level, and is subject to the supervision
of DAFP.
Severe physical losses means, for the
purpose of determining an
Administrator’s declaration of physical
loss, losses that consist of severe
damage to, or destruction of: Physical
farm property including farmland
(except sheet erosion); structures on the
land including, but not limited to,
building, fences, dams; machinery,
equipment, supplies, and tools;
livestock, livestock products, poultry
and poultry products; harvested crops
and stored crops.
Substantially affected when used to
refer to producers and to the
relationship of a particular producer to
a particular disaster means a producer
who has sustained qualifying physical
or production losses, as defined in this
section, as a result of the natural
disaster.
U.S. Drought Monitor is a system for
classifying drought severity according to
a range of abnormally dry to exceptional
drought. It is a collaborative effort
between Federal and academic partners
that is produced on a weekly basis to
synthesize multiple indices, outlooks,
and drought impacts on a map and in
narrative form. This synthesis of indices
is reported by the National Drought
Mitigation Center.
United States means each of the
several States, the Commonwealth of
Puerto Rico, the Virgin Islands of the
United States, Guam, American Samoa,
and the Commonwealth of the Northern
Mariana Islands. Extension of disaster
assistance, following a disaster
designation, to insular areas of the
United States not covered by this
definition of ‘‘United States’’ will be
only as authorized by law, and as
determined by the Administrator on
behalf of the Secretary to be appropriate.
PO 00000
Frm 00009
Fmt 4700
Sfmt 4700
41255
§ 759.5 Secretarial disaster area
determination and notification process.
(a) U.S. Drought Monitor. With
respect to drought and without
requiring an LAR:
(1) If any portion of a county is
physically located in an area with a
Drought Monitor Intensity Classification
value of D3 (drought-extreme) or higher
during any part of the growing season of
the crops affected by the disaster in the
county, then the county will be
designated a disaster area by the
Secretary.
(2) If any portion of a county meets
the threshold Drought Monitor Intensity
Classification value of D2 (droughtsevere) for at least 8 consecutive weeks
during the growing season of affected
crops, then the county will be
designated a disaster area by the
Secretary.
(b) CEB and SEB recommendations. In
instances where counties have been
impacted by a disaster but the county
has not been designated a disaster area
under the provisions of paragraph (a) of
this section, CEB will make a disaster
designation recommendation request to
SEB when a disaster has resulted in
severe production losses. The
determination of the sufficiency of the
production losses will be governed by
the provisions in paragraph (c) of this
section. The CEB may make such efforts
as are needed to identify counties that
have been impacted and had such
production losses. A farmer, Indian
Tribal Council, or local governing body
may initiate the process by reporting
production losses or drought conditions
to CEB and suggesting that there be a
recommendation in favor of designating
a county as a disaster area.
Recommendations by a CEB in favor of
a disaster designation by a CEB under
this paragraph are subject to the
following:
(1) A LAR is required as part of a CEB
disaster designation request. CEB will
submit a disaster designation request
with a LAR to SEB for review and
recommendation for approval by the
Secretary. CEB’s written request and
SEB recommendation must be
submitted within three months of the
last day of the occurrence of a natural
disaster.
(2) If SEB determines a qualifying
natural disaster and loss have occurred,
SEB will forward the recommendation
to the Administrator. The natural
disaster may include drought conditions
that were not sufficiently severe to meet
the criteria in paragraph (a) of this
section. Since the U.S. Drought Monitor
tracks only drought conditions, not
specifically agricultural losses resulting
from those conditions, it is possible for
E:\FR\FM\13JYR1.SGM
13JYR1
tkelley on DSK3SPTVN1PROD with RULES
41256
Federal Register / Vol. 77, No. 135 / Friday, July 13, 2012 / Rules and Regulations
a drought that does not meet the criteria
in paragraph (a) of this section to result
in production losses that constitute a
natural disaster.
(3) The Secretary or the Secretary’s
designee will make disaster area
determinations. The Secretary may
delegate the authority to the SED. In
such case, the SED will act on behalf of
the Secretary, subject to review by
DAFP as may be appropriate and
consistent with the delegation. The
delegation of authority to the SED may
be revoked by the authority making that
delegation or by other authorized
person. In all cases, DAFP may reverse
any SED determination made in
accordance with this section unless the
delegation to the SED specifies that such
review is not allowed.
(c) Eligible production losses. For
purposes of making determinations
under paragraph (b) of this section, in
order for an area to be declared a
disaster area under paragraph (b) of this
section based on production losses, the
county must have had production losses
of 30 percent of at least one crop in the
county as the result of a natural disaster.
(d) Discretionary exception to
production losses for designating a
county as a disaster county. For
purposes of the EM program only,
unless otherwise specified in the
designation, a county may be designated
by DAFP as a designated disaster county
even though the conditions specified in
paragraphs (a) through (c) of this section
are not present so long as the disaster
has otherwise produced such significant
production losses, or other such
extenuating circumstances so as to
justify, in the opinion of the Secretary,
the designation of a county as a disaster
area. In making this determination, the
Secretary may consider all relevant
factors including such factors as the
nature and extent of production losses;
the number of farmers who have
sustained qualifying production losses;
the number of farmers that other lenders
in the county indicate they will not be
in position to provide emergency
financing; whether the losses will cause
undue hardship to a certain segment of
farmers in the county; whether damage
to particular crops has resulted in
undue hardship; whether other Federal
or State benefit programs, which are
being made available due to the same
disaster, will consequently lessen undue
hardship and the demand for EM; and
any other factors considered relevant.
§ 759.6
FSA for coverage of the EM Program as
follows:
(1) Secretarial designations. When
production losses meet the requirements
in § 759.5 and the county has been
designated as a disaster area for that
reason, or when the discretionary
exception to production losses for EM
under § 759.5(d) has been exercised, the
primary and contiguous counties will be
areas in which otherwise eligible
producers can receive EM loans.
(2) Physical loss notification. When
only qualifying physical losses occur,
the SED will submit a request to the
FSA Administrator to make a
determination that a natural disaster has
occurred in a county, resulting in severe
physical losses. If the FSA
Administrator determines that such a
natural disaster has occurred, then EM
can be made available to eligible farmers
for physical losses only in the primary
county (the county that was the subject
of that determination) and the counties
contiguous to that county.
(3) USDA quarantine. Any quarantine
imposed by the Secretary of Agriculture
under the Plant Protection Act or the
animal quarantine laws, as defined in
section 2509 of the Food, Agriculture,
Conservation, and Trade Act of 1990,
automatically authorizes EM for
production and physical losses resulting
from the quarantine in a primary county
(the county in which the quarantine was
in force) and (where the quarantine
effects extend beyond that county) the
counties contiguous to that primary
county.
(4) Presidential declaration.
Whenever the President declares a
Major Disaster Declaration or an
Emergency Declaration, FSA will make
EM available to eligible applicants in
declared and contiguous counties,
provided:
(i) The Presidential declaration is not
solely for Category A or Category B
Public Assistance or Hazard Mitigation
Grant Assistance, and
(ii) The Presidential Major Disaster
declaration is for losses due to severe,
general disaster conditions including
but not limited to conditions such as
flood, hurricane, or earthquake.
(b) [Reserved]
PART 762—GUARANTEED FARM
LOANS
2. The authority citation for part 762
would continue to read as follows:
■
Authority: 5 U.S.C. 301 and 7 U.S.C. 1989.
EM to be made available.
(a) For purposes of the EM Program
under part 764, subpart I, of this
chapter, a county will be considered an
eligible disaster area as designated by
VerDate Mar<15>2010
16:29 Jul 12, 2012
Jkt 226001
§ 762.106
[Amended]
3. Amend § 762.106(b)(2) and (c)(4) by
removing the reference ‘‘part 1945,
subpart A of this title’’ and adding in its
■
PO 00000
Frm 00010
Fmt 4700
Sfmt 4700
place each time it appears ‘‘§ 761.2(b)
and part 759 of this chapter’’.
CHAPTER XVIII—RURAL HOUSING
SERVICE, RURAL BUSINESSCOOPERATIVE SERVICE, RURAL UTILITIES
SERVICE, AND FARM SERVICE AGENCY,
DEPARTMENT OF AGRICULTURE
PART 1945 [REMOVED]
■
4. Remove part 1945.
Signed on July 10, 2012.
Karis T. Gutter,
Under Secretary, Farm and Foreign
Agricultural Services.
Signed on July 10, 2012.
Dallas Tonsager,
Under Secretary, Rural Development.
[FR Doc. 2012–17137 Filed 7–12–12; 8:45 am]
BILLING CODE 3410–05–P
DEPARTMENT OF AGRICULTURE
Rural Housing Service
Rural Business-Cooperative Service
Rural Utilities Service
Farm Service Agency
7 CFR Part 1902
RIN 0575–AC94
Federal Deposit Insurance Corporation
Limit Change
Rural Housing Service, Rural
Business-Cooperative Service, Rural
Utilities Service and Farm Service
Agency, USDA.
ACTION: Direct final rule.
AGENCY:
Rural Development is
amending its regulations to address the
change in the standard maximum
deposit insurance amount under the
Federal Deposit Insurance Corporation
(FDIC).
SUMMARY:
This rule is effective without
further action September 26, 2012
unless we receive written adverse
comments on or before September 11,
2012. If adverse comment is received,
we will publish a timely withdrawal of
the rule in the Federal Register.
ADDRESSES: You may submit comments
to this rule by any of the following
methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• Mail: Submit written comments via
the U.S. Postal Service to the Branch
Chief, Regulations and Paperwork
Management Branch, U.S. Department
of Agriculture, STOP 0742, 1400
DATES:
E:\FR\FM\13JYR1.SGM
13JYR1
Agencies
[Federal Register Volume 77, Number 135 (Friday, July 13, 2012)]
[Rules and Regulations]
[Pages 41248-41256]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-17137]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Farm Service Agency
7 CFR Parts 759 and 762
Rural Utilities Service
Rural Housing Service
Rural Business-Cooperative Service
Farm Service Agency
7 CFR Part 1945
RIN 0560-AH17
Disaster Designation Process
AGENCY: Farm Service Agency, Rural Business-Cooperative Service, Rural
Housing Service, and Rural Utilities Service, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Farm Service Agency (FSA) is revising its disaster
designation regulations, with minor changes from the proposed rule. The
rule simplifies procedures for Secretarial designations of disaster
areas. This rule includes provisions for nearly automatic disaster
designation in the case of severe drought. The rule also provides
procedures FSA may use to delegate disaster designation authority to
FSA State level officials. The rule removes the requirement that a
State Governor or Indian Tribal Council must request a Secretarial
disaster designation before a designation can be made. Also, this rule
moves the disaster designation regulations to the same chapter of the
Code of Federal Regulations (CFR) as the FSA Emergency Loan (EM)
Program regulations. FSA expects that the simplified process will
result in faster designations of disaster areas, and result in more
timely disaster assistance.
DATES: This rule is effective on July 12, 2012.
FOR FURTHER INFORMATION CONTACT: Steve Peterson; telephone: (202) 720-
7641. Persons with disabilities who require alternative means for
communications (Braille, large print, audio tape, etc.) should contact
the USDA Target Center at (202) 720-2600 (voice and TDD).
SUPPLEMENTARY INFORMATION:
Background
This final rule amends procedures for designating counties as
disaster areas. Some USDA programs past and present, administered by
FSA have eligibility criteria that include whether losses occurred
within a disaster area. For example, the Secretary of Agriculture is
authorized to make emergency loans available (7 U.S.C. 1961) to farmers
whose operations have been substantially affected by a natural disaster
in a designated disaster county. Disaster designations have been used
to qualify producers in those counties for other programs, such as
certain crop disaster payment programs under past legislation and it is
possible that future legislation will also tie program eligibility to
Secretarial designations. The authority to make those designations and
administer the designation system has been delegated to FSA. Until now,
FSA regulations regarding the disaster designation process were in 7
CFR part 1945.
On November 14, 2011, FSA published a proposed rule to amend the
disaster designation regulations to provide for changes in the
designation process (76 FR 70368-70374). In general, that rule proposed
to simplify the disaster designation process and to delegate the
authority for designation to the State level of FSA. It also proposed
to move the disaster designation regulations from 7 CFR part 1945 to 7
CFR part 759. The latter (part 759) is in a part of the CFR where there
are general regulations that apply to multiple programs administered by
FSA. We received 18 comments during the 60-day comment period.
Commenters included individuals, State agencies, universities, FSA
employees, and producer associations. Almost all of the comments
supported the rule. Some supporting comments asked for minor
clarifications or changes. The comments opposing the rule included
suggestions that are beyond FSA's authority, such as a suggestion
requiring State agencies to participate in our disaster designation
process. In response to comments, we are removing a proposed definition
because it is not actually used in the other parts of the regulations,
and we are clarifying the Secretary's delegation authority in several
respects with minor changes to those in the proposed rule. For example,
some references to the eligibility of contiguous counties are amended
to refer to the separate regulations that apply to the disaster
assistance programs. The delegation authority change clarifies that the
delegation authority for disaster declarations may be delegated to the
State level of FSA but that such a delegation is not automatic, or
assumed, but is discretionary and will require specific delegation
action. That is a change from the proposed rule, which proposed a
delegation to the FSA State level as the default procedure. There were
also a few comments asking for clarification of internal FSA
procedures. We will provide clarification on internal FSA procedures in
the handbooks, because we believe that in this instance that is the
appropriate location for the level of detail about internal procedures
reflected in the comments. FSA handbooks are available to the public.
This document first discusses the disaster designation process as
specified in this rule, and then discusses our responses to the
comments received. Except for the changes in response to comments noted
above (removing a definition not used, changing delegation of authority
from a default process to an optional process, and clarifying
contiguous county applicability), the disaster designation process
specified in this rule is the same as in the proposed rule.
Disaster Designation Process Background
There are four types of disaster determinations that can affect the
administration of benefits by FSA:
(1) USDA Secretarial disaster designations,
(2) Presidential major disaster and Presidential emergency
declarations,
(3) FSA Administrator's Physical Loss Notifications, and
(4) Quarantine designations by the Secretary under the Plant
Protection Act or animal quarantine laws as defined in section 2509 of
the Food, Agriculture, Conservation and Trade Act of 1990 (referenced
in 7 CFR part 761, which includes a definition of ``quarantine'' in
accordance with 7 U.S.C. 1961).
FSA administers the making of USDA Secretarial disaster
designations. Those declarations specify:
(1) The specific disaster that resulted in the designation,
[[Page 41249]]
(2) The incidence period (dates) of that disaster, and
(3) The specific counties that are included in the designation.
Of the four types of disaster determinations listed above, the USDA
Secretarial disaster designation is the one that most often impacts FSA
programs. Previously, its process was the most complicated of the four.
This rule simplifies the process of making those determinations.
This rule reduces the number of steps in the process. Before, the
process required actions by the Secretary of Agriculture, a State
Governor or Indian Tribal Council, FSA National office, the FSA State
Executive Director (SED), FSA county offices, the County Emergency
Board (CEB), and the State Emergency Board (SEB). This process
specified in this rule will in the most complex case only require
action by the Secretary (or the Secretary's designee), the CEB, the
SEB, and the SED. In the case of a severe drought, it will only require
action by the Secretary (or the Secretary's designee). While the
Secretary retains the authority to make any and all determinations,
this rule provides procedures for that responsibility to be delegated
to FSA at the State level. If the Secretary chooses, the SED will be
delegated authority to make the designation on behalf of the Secretary,
based on a recommendation from the SEB. (The SED is the chairperson of
the SEB.) The Secretary retains the authority and flexibility to
determine which SEDs will be delegated authority and when.
The rule eliminates the requirement that a request from a State
Governor or Indian Tribal Council is needed before a disaster
designation can be made. Under this rule, an Indian Tribal Council or
Governor may still initiate a request for designation to the County
Emergency Board (CEB), SEB, or Secretary, but that request would no
longer be required to initiate the process. In response to a request by
a Governor or Tribal Council for information about pending potential
disaster designations with respect to a specific disaster, the
Secretary will advise the Governor or Indian Tribal Council(s) of any
designation requests that are under review in their State or Tribal
region. This rule also eliminates the requirement for FSA National
office review of the information submitted by the SEB to justify a
disaster designation for a county. However, the FSA National office
will perform spot check reviews.
This rule provides for a nearly automatic designation of any county
in which drought conditions as reported in the U.S. Drought Monitor
(https://www.droughtmonitor.unl.edu) meet the drought intensity value of
at least D2 (Drought--Severe) for 8 consecutive weeks in any portion of
the county. Further, any county that has a portion of its area in a
drought intensity value of D3 (Drought--Extreme) or higher at any time
during the growing season of the affected crops would be considered a
disaster area.
This rule also revises the definition of ``natural disaster'' to be
consistent with other existing FSA regulations that use that term.
In addition to the substantive changes to the disaster designation
process, this rule implements the provisions specified in the proposed
rule that reorganize the disaster designation regulations. This rule
moves the disaster designation regulations from 7 CFR part 1945 to 7
CFR part 759. This rule also makes the clarifying changes that were in
the proposed rule, including changes to remove internal FSA processes
that are not needed in the rule, but are instead made in the handbook,
where they more properly belong. A conforming change is made to amend 7
CFR part 762, ``Guaranteed Farm Loans,'' to remove a reference to 7 CFR
part 1945 and replace it with a reference to new part 759.
Discussion of Comments
The following provides a summary of public comments received on the
proposed rule and FSA's response, including changes we are making in
response to the comments.
Definitions
Comment: Removing the list of examples of unusual and adverse
weather conditions from the definition of ``natural disaster'' could
lead to potential program abuse and fraud. It would allow nearly any
simple event like a spring rain during hay cutting to be considered a
natural disaster. Therefore, that change should not be made. The
definition and list of examples should not be modified or removed.
Response: The definition of ``natural disaster'' in this rule
adequately describes a disaster as an unusual or severe weather
condition or other natural phenomena that causes severe losses. The
definition in this rule is consistent with other FSA regulations that
use that term. A list of examples could be problematic if it was
interpreted to mean that only those disaster conditions listed were
possible eligible disaster situations. In those cases where the
designation is not automatic (that is, not based on officially-
published drought data), the rule provides an ample opportunity for
review. No change is made in response to this comment.
Comment: The definition of CEB should be amended to specify that
local Cooperative Extension agents or educators who have
responsibilities for reporting the occurrence of a disaster, assessing
the extent of a disaster, and for requesting approval in declaring a
county a disaster are included as members of the CEB. Similarly, the
term SEB should likewise be amended to include Cooperative Extension
agents having program responsibilities at the State level.
Response: The CEB and SEB do consider input from State and local
experts on local disaster conditions. Extension agents can and do
attend meetings and provide input. However, USDA does not have the
authority to require Extension agents or other local non-federal
partners to participate or attend as members of the CEB or SEB. Even if
they were willing to participate, the determination must remain within
USDA and it has been deemed best to limit the CEB and SEB membership
accordingly. This will also assure consistency in the makeup of the
CEBs and the SEBs. No change is made in response to this comment.
Comment: FSA should include State government agriculture and
emergency management agency representatives on the SEB. They must
receive communications about disaster designations, and must be allowed
to provide input on the approval process.
Response: FSA agrees that State level persons who are engaged in
work related to identifying and reporting disasters and other State or
local government work can provide valuable information and input that a
CEB or SEB may consider in making a CEB or SEB recommendation. Such
representatives are invited to attend and provide input. However, as
with the previous comments, FSA believe that the actual boards should
be comprised of USDA staff only. This is particularly with respect to
nonfederal persons as the designation is a federal function. Also, it
is relevant to note that the boards are not outside advisory boards and
therefore not subject to the special procedures that can apply to such
organizations.
Comment: The definition of contiguous county should be amended to
specify how rivers, lakes, and other bodies of water are viewed. For
example, if counties are separated by a large body of water (Lake
Michigan), are the counties on each side of the lake contiguous?
[[Page 41250]]
Response: The definition of ``contiguous county'' already provides
for the inclusion of a county whose boundary touches a ``primary
county.'' The rule makes no distinction for boundaries that touch in
water, and is not defining county boundaries in a different way than
those boundaries are legally defined by States and local jurisdictions.
In the past, counties on each side and separated by a wide body of
water, such as Lake Michigan or the Pacific Ocean, have not been viewed
as contiguous by USDA because the legal boundaries of those counties
are not contiguous. No change in the definition is necessary.
Comment: The definition of ``production losses (severe)'' needs to
be clarified because it is unclear whether production losses include
physical losses. If the intention is to limit production losses to only
losses of production, the definition should state that physical losses
are not included. There is a difference between physical and production
losses resulting from natural disaster.
Response: In the context of the rule ``physical losses'' means
losses to a building or to stored goods and the like. Production
losses--losses of growing crops--as defined in this rule do not include
physical losses. The definition of ``production losses (severe)'' is
clear that a loss of at least 30 percent or more of at least one crop
(not property or things included in the rule's definition of physical
losses) is a severe production loss for purposes of the rule. FSA does
not believe that either the definition of production losses (severe) or
the definition of severe physical losses require further amendment or
clarification.
Comment: The definition for ``normal year's dollar value'' is
unnecessary as the term is not used in the rule. Additionally, the
definition is in conflict with other FSA regulations.
Response: In response to this comment, the proposed definition has
been removed and is not in this final rule.
Disaster Area Determination and Notification Process
Comment: Of the methods in Sec. 759.5 for declaring a disaster
(automatic process for drought, SEB recommendation, production losses
of at least 30 percent, and Secretarial discretion for exceptions),
only that in paragraph (b) (regarding recommendations by CEBs and
SEBs), seems to require review by the FSA Deputy Administrator for Farm
Programs. If the intent is not to use the method in paragraph (b) most
of the time, but always use the other more lenient methods whenever
possible, then there is no point in having that method, so paragraph
(b) should be removed.
Response: The CEB and SEB criteria requires the finding of a 30
percent production loss and will likely be the most used option. By
nature, those recommendations require review of some kind and therefore
the rule provides for review by the Deputy Administrator. However, the
rule allows for delegation of that review to the SED. Any SED disaster
designation action may be reviewed by the Deputy Administrator for Farm
Programs (DAFP) as appropriate. The special discretion for special
cases where production losses are not at least 30 percent or where the
automatic drought criteria are not met is intended for special cases
only. We think that the review provisions are necessary and appropriate
to assure as much consistency as possible. No change is made in
response to this comment.
Comment: USDA should notify Governors and State personnel when it
receives a request for a designation from a CEB. It is important for
Governors and States to have real time knowledge of agricultural
disaster information and to ensure effective coordination and sharing
of information. FSA should also notify Governors and State personnel
when a disaster declaration is about to be made, before the general
publication notification is made by USDA.
Response: FSA will provide that notice when requested once the
disaster has occurred with respect to designations for that particular
disaster. Because of the streamlined procedures and the desire for a
quick determination where such a determination is warranted and
possible, FSA does not anticipate that every Governor and State
personnel will ask for pre-notification. FSA will amend internal
operating guidelines and handbooks to provide procedures for responding
to requests for information about pending disaster designations from
interested parties, including Governors and Tribal Councils. The
procedure will be in the handbooks and internal guidelines rather than
in the rule.
Comment: The CEB does not meet regularly and in most cases the FSA
County Executive Director (CED) compiles the information necessary for
supporting designation requests. Recommend making CEB interchangeable
with the CED.
Response: FSA recognizes the valuable contribution by the CED in
obtaining the information that will be used by a CEB or SEB to
recommend the disaster designation. However, the CEB is comprised of
representatives of several USDA agencies, including but not limited to
FSA, that have responsibilities for reporting disasters and assessing
the resulting damage caused. It provides a valuable coordination
function between USDA agencies. CEB will meet as needed to promptly
implement the procedures in this rule. No change is made to the rule in
response to this comment.
Comment: The regulation does not specify how information required
by the CEB and SEB is collected and documented. There should be more
specifics about what is required. For example, GIS maps should be
required for all disaster designation requests, not just for drought.
Response: The proposed rule provides procedure for the nearly
automatic designations based on the Drought Monitor as well as the
reliance upon the Loss Assessment Report (LAR) for those designation
requests not meeting the automatic designation criteria. Information
from which a LAR can be developed or produced can come from various
sources. FSA does not intend to restrict or mandate the sources of
information that may be considered by a CEB or SEB in assessing losses.
However, FSA will issue internal operating guidelines that will provide
instructions regarding necessary information and documentation that
will be necessary to support recommendations. In the case of drought,
the process will be nearly automatic, based on documentation provided
by the Drought Monitor itself. We say ``nearly'' automatic because of
the function that will be performed by FSA to identify eligible
counties from the official reports and to prepare the notice. No change
is made to the rule in response to this comment, but the subject matter
will be addressed in FSA handbooks.
Comment: The streamlined automatic designation process for drought
could create designations for multiple counties in times of regional
disasters. That could be confusing and cause disaster designations when
one is not appropriate because the entire county was not impacted.
Response: A disaster declaration is not the only eligibility
requirement for FSA disaster assistance programs that depend on a
declaration. Most also require some threshold of documented losses.
While it is possible that a drought will not impact an entire county
that has been declared a disaster, in that case the producers in the
county who were not impacted will be unlikely to meet the other
criteria for benefit
[[Page 41251]]
eligibility. The rules for designating a county as a disaster area when
requirements are met based on information that may only be applicable
to part of the county are not being modified by this rule. Generally,
there is no requirement that the peril or perils that cause a county to
be designated a disaster area have impacted all or most of a county.
The authorizing legislation for FSA programs that rely on disaster
designations consistently refer to county level disaster declarations,
with no provisions to make designations for smaller areas. Furthermore,
even if a more discrete declaration were permitted, attempting to
identify specific affected locations within a county would be time-
consuming, uncertain, and would slow the process of making aid
available without a justifiable and substantial countervailing benefit.
Individual producers must still establish their loss and must establish
that it is related to the disaster. No change is made in response to
this comment.
Comment: In the case of drought, the regulation should specify that
when large areas of a State are impacted, counties affected should be
combined as much as possible. The regulations should permit the SED to
combine declarations, even if that means a 30- to 60-day delay until
the data from the additional counties are known. That would make the
disaster response process easier for States.
Response: The current regulations permit a disaster declaration
that includes multiple counties. That is not changing with this rule.
However, in the case of a drought, the Secretary will designate that
area a disaster area when the drought intensity threshold is met,
without waiting to see if nearby counties reach the severe or extreme
drought threshold. We see no persuasive point in delaying the process
to see if other counties qualify. No change is made in response to this
comment.
Comment: The Drought Monitor is a valid tool; however, the problem
is defining the line location for the drought area as it relates to a
whole county. There may be instances where the Drought Monitor may
accurately show that a small percent of a county has suffered due to
drought; however, based on that data, an entire county may get the
designation (based on drought). Recommend the CEB or CED determine if
drought monitor conditions are reflective of conditions for the county
and not just for the location of the monitor.
Response: As specified in Sec. 759.5(a) of this rule, a loss
assessment report (LAR) developed by the CEB is not required for
disaster designation in the case of severe drought. Also, as noted
above, a disaster declaration is not the only eligibility requirement
for most FSA disaster assistance programs, and the authorizing
legislation for FSA programs that rely on disaster designations
consistently refer to county level disaster declarations, with no
provisions to make designations for smaller areas. No change is made in
response to this comment.
Comment: The rule is unclear how an individual farmer, State
Governor, Indian tribal council, or local governing body will initiate
a request for designation.
Response: Anyone can contact the Secretary or FSA and request a
designation using any means, including a phone call, letter, or email,
to report production losses or drought conditions to the CEB, as
specified in this rule in Sec. 759.5. Time and prudent considerations
may govern how that contact is made. In any case, we do not believe
that it is necessary to specify the method of contact in the rule
itself to allow flexibility.
Comment: If anyone can request a disaster designation, this could
greatly increase the workload for local staff. Recommend keeping the
requirement for a request by the Governor or Indian Tribal Council.
Response: The benefits to producers of allowing anyone to report
losses, facilitating a more expedited disaster designation process,
outweigh any perceived or alleged increases in workload.
Comment: The new process will be more objective for drought. In the
past, it was possible that some people could try to use undue influence
to force the CEB to request a disaster even though conditions may not
warrant a county-wide declaration process. What is being done to ensure
that will not happen with the new process?
Response: The general drought authority will rely on published
reports. Where the CEB is involved in the process, there will be review
of the disaster recommendation by the SEB and by the Secretary's
designee. We believe that the provisions for review are sufficient and
persons concerned about any disaster declaration are always free to
make that feeling known to generate greater review in particular cases.
No change is made in response to this comment.
Comment: Governors or Indian tribal councils should have to seek
designations. State governments and Indian tribal councils should not
be removed from the process. A State may not want a designation
approved. The drought might not be as severe as the Drought Monitor
makes it seem, and a disaster declaration could scare away tourists.
Response: USDA has the responsibility to designate disasters using
consistent criteria for the entire nation, so that producers in all
States and counties have an opportunity to be eligible for disaster
assistance if they suffered losses in a disaster area. No change is
made in response to this comment.
Comment: The proposed designation process could compromise the
integrity of the designation process by removing safeguards realized
with a National review of designation requests. By removing the FSA
National office review by impartial reviewers, politically appointed
SEDs will be under increasing pressure to approve disaster
designations, perhaps wrongly.
Response: The FSA National office will still be responsible for
oversight and spot check of the process as needed and we believe that
the opportunity for review in the regulations is sufficient. Also, as
indicated, problems with individual determination can always be raised
to generate additional review. In this rule, Sec. 759.5 specifies that
if the Secretary so chooses, authority may be delegated to make the
designation at the State level, but that delegation is not automatic.
At the State level, the SED may act based on a recommendation from the
SEB. Such delegations may be limited to particular disasters. Section
759.6 has also been changed from the proposed rule to remove proposed
language referring to a disaster designation made by the SED to reflect
that there must be a specific delegation as no SED is empowered by the
regulations themselves to make the designation.
Comment: Keep the old more complex process. Simplifying the process
will result in more fraud, increasing the total government deficit.
Response: As noted above, the FSA National office will conduct spot
checks of disaster designations to ensure program integrity. The
revised process is expected to result in faster disaster designations,
but not more eligible disaster designations, as the rule does not
materially change the conditions under which a designation could be
made.
Comment: Need clarification on the discretionary exceptions from
the definition of production losses 7 CFR 1945.6(c)(3)(iii)(C). Are
they being removed? The previous definition allowed a disaster
declaration if production losses have not met the 30 percent loss
threshold, but other
[[Page 41252]]
conditions exist, including producers unable to get financing.
According to the table in the preamble to the proposed rule, and the
proposed new definition of production losses, it looks like the
discretionary exceptions for production losses are removed from the
definition section. Does that mean that the lack of getting a lender to
finance is no longer included in the definition of production losses,
and that we will be unable to obtain a disaster declaration based on
financial hardship?
Response: This rule does not remove the provisions allowing the
Secretary discretionary authority to declare a disaster even if the 30
percent production loss threshold has not been met. The discretionary
exception provisions have been moved, not removed. The discretionary
authority disaster designation process is specified in Sec. 759.5,
rather than in the definitions section. It includes the number of
farmers unable to obtain emergency financing as one of the factors the
Secretary may consider in determining whether to use this discretionary
authority. This rule does not modify EM procedures or policies. No
change is made in response to this comment.
Comment: The current designation process enables a Governor to best
manage an agricultural disaster, including taking the necessary steps
within the State in determining how and where the State is best served
by seeking Federal relief through a disaster designation. Do not take
the Governors out of the process. If each county has to independently
advocate relief, the larger counties with more resources will be able
to more vigorously and expeditiously make disaster designation
requests, at the expense of more rural counties. This would not be
fair, and would disable the Governor's ability to prioritize statewide
needs.
Response: The simplified and streamlined process does not remove
authority of Governors to seek designations for any of the counties
located in their respective State. The proposed rule also does not
prohibit a Governor from taking any State level action in response to
whatever concerns or needs that might arise following an emergency. In
fact, the expedited designation process should be able to assist all
localities with a faster disaster designation process. Local emergency
response resources and their distribution are outside the scope of this
rule. FSA will designate counties based on factual information about
disaster conditions in counties large and small. No change is made in
response to this comment.
Comment: What if the same disaster causes both production and
physical losses? Does the rule mean that both a Secretarial declaration
and an Administrator's declaration of physical loss would be required
in that case? If so, that seems more complicated, not less complicated,
than the current procedure.
Response: As specified in this rule in Sec. 759.6, the
Administrator's declaration of physical loss process is used when only
physical losses occur. When both production and physical losses occur,
the Secretarial disaster designation process is used. No change is made
in response to this comment.
Comment: Eliminate the Presidential, Secretarial, and Administrator
designations processes for the FSA EM and the FSA Supplemental Revenue
Assistance Payments (SURE) Program. The current process is complicated
and time consuming. Proposed rule is unclear if there will be any
reduction of paperwork or other time requirements on county FSA
offices. The rule does not appear to have very many benefits for
individual producers.
Response: USDA does not have authority to modify the disaster
designation eligibility requirements for the SURE (should it be
reauthorized) or EM program because these requirements are specified in
authorizing laws. The streamlined process of processing requests for
designations should benefit producers by providing disaster benefits
more quickly. No change is made in response to this comment.
General Comments
Comment: USDA should consider increasing the maximum income levels
for benefit eligibility to allow farmers and ranchers in high cost
areas to take advantage of more FSA program benefits.
Response: USDA does not have authority to change the adjusted gross
income provisions that apply to FSA program benefit eligibility to the
extent that they are mandated by law and in other instances use of
those provisions may help target benefits to those whose need is the
greatest. In any event, this comment and issue are outside the scope of
this rule. No change is made in response to this comment.
Comment: Benefits for adjoining counties should be discontinued to
help reduce potential fraud or less than credible claims. Disaster
designations should only apply to the county and not other adjoining
areas.
Response: The proposed rule was meant to address only the process
by which designations are made and hence this comment goes beyond the
scope of this rule. The program specific rules include contiguous
counties when specifically authorized for that program by law. However,
some additional language has been added to clarify that the rules about
contiguous counties should be resolved by the regulations particular to
each program. That said, the designation regulations have traditionally
carried provisions dealing with that issue specifically for the EM
program and this rule continues that practice. As some point we will
consider moving the substantive EM provisions to the EM regulations
themselves. The EM regulations are found in 7 CFR part 764. The EM
regulations require a disaster as a predicate for an EM loan and under
the general definitions in 7 CFR part 761 a ``disaster'' requires an
FSA designation. This rule specifies that the FSA designation will
include not only those that involve a Secretarial designation under
these rules but the EM Program will also consider as designated
counties eligible to trigger EM loans those counties that are the
subject of the other kinds of disaster determinations noted above. The
provisions addressing EM qualifications appear in 7 CFR 759.6 of the
regulations adopted in this rule. To avoid confusion, 7 CFR part 759 as
clarified in this rule will specify that unless otherwise indicated in
the regulations for the actual benefit program, or in 7 CFR 759.6, for
purpose of administering disaster assistance only the primary county
will be considered the disaster county. That is, producers in the
contiguous county will only be able to qualify for disaster assistance
if the disaster assistance regulations or, in the case of EM, 7 CFR
759.6, provide for such eligibility. This is consistent with long-
standing practice, and provisions in authorizing laws, and involves no
change in policy.
Comment: The more timely designations may place an even greater
burden on local governments who have limited staff to help with
disaster response and the recovery process.
Response: This rule does not require any specific action by a local
government to assist with USDA's disaster designation process. In fact,
it removes the requirement for a request for disaster designation by
the Governor or Tribal Council. The more rapid designation of disasters
should help identify where response is most urgently needed, allowing
local governments to focus resources on where it is needed the most. No
change is made in response to this comment.
[[Page 41253]]
Miscellaneous Change
This rule also removes the abbreviation for NASS, the USDA National
Agricultural Statistics Service, which only appeared in a definition in
the proposed rule that is not included in this final rule.
Effective Date
The administrative procedure provisions in 5 U.S.C. 553(d) require
that a substantive rule be published ``not less than 30 days before its
effective date.'' As specified in 5 U.S.C. 553(d), exceptions to the
30-day post publication effective period include: (1) A substantive
rule which grants or recognizes an exemption or relieves a restriction;
(2) interpretative rules and statements of policy; and (3) as otherwise
provided by the agency for good cause found and published with the
rule. Here, however, the substance of this final rule was published in
the proposed rule that was published more than 30 days prior to the
publication of this final rule. Moreover, even if that should not be
deemed to suffice, FSA finds that all of the exceptions apply. In fact,
the rule relieves restrictions that the Secretary had placed on USDA's
own internal processes, policy, and rules in order to expedite and make
more efficient timely designations. Also, this rule makes substantive
changes only with respect to USDA's own operations and thus involves
matters of agency policy not of regulations in the normal sense. This
rule accordingly involves, in terms of its changes, an agency statement
of policy. Further, this rule will, with no negative countervailing
considerations, provide a benefit to the public by providing more
timely disaster relief. For that reason, any delay in implementing this
rule is in the opinion of the agency, contrary to the public interest.
Accordingly, this rule is made effective immediately upon filing for
public inspection.
Executive Order 12866 and 13563
Executive Order 12866, ``Regulatory Planning and Review,'' and
Executive Order 13563, ``Improving Regulation and Regulatory Review,''
direct agencies to assess all costs and benefits of available
regulatory alternatives and, if regulation is necessary, to select
regulatory approaches that maximize net benefits (including potential
economic, environmental, public health and safety effects, distributive
impacts, and equity). Executive Order 13563 emphasized the importance
of quantifying both costs and benefits, of reducing costs, of
harmonizing rules, and of promoting flexibility.
The Office of Management and Budget (OMB) designated this rule as
not significant under Executive Order 12866 and, therefore, OMB has not
reviewed this final rule.
Regulatory Flexibility Act
The Regulatory Flexibility Act (5 U.S.C. 601-612), as amended by
the Small Business Regulatory Enforcement Fairness Act of 1996
(SBREFA), generally requires an agency to prepare a regulatory
flexibility analysis of any rule subject to the notice and comment
rulemaking requirements under the Administrative Procedure Act (5
U.S.C. 553) or any other statute, unless the agency certifies that the
rule will not have a significant economic impact on a substantial
number of small entities. FSA has determined that this rule will not
have a significant impact on a substantial number of small entities.
New provisions of this rule will not impact a substantial number of
small entities to a greater extent than large entities. FSA anticipates
that the rule will not require submission of any additional information
by the public. It is expected to be revenue neutral, neither increasing
nor decreasing benefits for producers as a whole. Therefore, FSA
certifies that this rule will not have a significant economic impact on
a substantial number of small entities.
Environmental Review
FSA has determined that these changes would not constitute a major
Federal action that would significantly affect the quality of the human
environment. Therefore, in accordance 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),
no environmental assessment or environmental impact statement will be
prepared.
Executive Order 12372
Executive Order 12372, ``Intergovernmental Review of Federal
Programs,'' requires consultation with State and local officials. The
objectives of the Executive Order are to foster an intergovernmental
partnership and a strengthened Federalism, by relying on State and
local processes for State and local government coordination and review
of proposed Federal Financial assistance and direct Federal
development. This rule neither provides Federal financial assistance or
direct Federal development; it does not provide either grants or
cooperative agreements. Therefore, this rule is not subject to
Executive Order 12372.
Executive Order 12988
This rule has been reviewed in accordance with Executive Order
12988, ``Civil Justice Reform.'' This rule preempts State and local
laws, regulations, or policies that are in conflict with the provisions
of this rule. The rule will not have retroactive effect.
Executive Order 13132
This rule has been reviewed under Executive Order 13132,
``Federalism.'' As this rule does not require any action by any State,
the policies contained in this rule do not have any substantial direct
effect on States, the relationship between the Federal government and
the States, or the distribution of power and responsibilities among the
various levels of government. Nor does this final rule impose
substantial direct compliance costs on State and local governments.
Therefore, consultation with the States is not required.
Executive Order 13175
This rule has been reviewed for compliance with Executive Order
13175, ``Consultation and Coordination with Indian Tribal
Governments.'' This Executive Order imposes requirements on the
development of regulatory policies that have Tribal implications or
preempt Tribal laws. The USDA Office of Tribal Relations has concluded
that the policies contained in this rule do not, to our knowledge
conflict with any Tribal law and therefore does not preempt Tribal law.
Were there a conflict, the provisions of the regulations would prevail
as far as administering the federal programs that are affected by the
rule.
Before publishing the proposed rule, FSA consulted with the USDA
Office of Tribal Relations and has concluded that this rule will not,
to our knowledge, have a substantial direct effect on Indian tribes and
no formal Tribal consultation under E.O. 13175 is required. FSA will
conduct an informational forum (telephone call or webinar) to answer
questions about this rule from all interested Indian Tribes soon after
this rule has been published.
The Unfunded Mandates Reform Act of 1995
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA, Pub. L.
104-4) requires Federal agencies to assess the effects of their
regulatory actions on State, local, and Tribal governments or the
private sector. Agencies generally must prepare a written statement,
including a cost
[[Page 41254]]
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 final rule
contains no Federal mandates, as defined under title II of the UMRA,
for State, local, and Tribal governments or the private sector. Thus,
this proposed rule does not trigger the requirements of sections 202
and 205 of UMRA.
Paperwork Reduction Act of 1995
The amendments in this final rule require no revision to the
information collection that was previously approved by OMB under
control number 0560-0170. Although this rule streamlines the disaster
designation process, including removing the requirement for a State
Governor or Indian Tribal Council to initiate a request for a
Secretarial disaster designation, it does not prohibit that action and
may therefore not result in a reduction in burden hours. Any change in
burden hours will be documented in the next information collection
request.
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.
Federal Assistance Program
These changes affect the following FSA program listed in the
Catalog of Federal Domestic Assistance:
10.404--Emergency Loans
List of Subjects
7 CFR Part 759
Administrative practice and procedure, Agriculture, Authority
delegations, Disaster assistance, Loan programs--Agriculture, Reporting
and recordkeeping requirements.
7 CFR Part 762
Agriculture, Credit, Loan programs--Agriculture.
7 CFR Part 1945
Agriculture, Disaster assistance, Drug traffic control, Loan
programs--Agriculture, Reporting and recordkeeping requirements.
For the reasons discussed above, FSA adds 7 CFR part 759, amends 7
CFR part 762, and under the authority of 7 U.S.C. 1989, removes 7 CFR
part 1945 as follows:
CHAPTER VII--FARM SERVICE AGENCY, DEPARTMENT OF AGRICULTURE
0
1. Add a new part 759 to read as follows:
PART 759--DISASTER DESIGNATIONS AND NOTIFICATIONS
Sec.
759.1 Administration.
759.2 Purpose.
759.3 Abbreviations and definitions.
759.5 Secretarial disaster area determination and notification
process.
759.6 EM to be made available.
Authority: 5 U.S.C. 301, 7 U.S.C. 1961 and 1989.
Sec. 759.1 Administration.
(a) This part will be administered under the general supervision
and direction of the Administrator, Farm Service Agency (FSA).
(b) FSA representatives do not have authority to modify or waive
any of the provisions of the regulations of this part as amended or
supplemented.
(c) The Administrator will take any action required by the
regulations of this part that the Administrator determines has not
already been taken. The Administrator will also:
(1) Correct or require correction of any action taken that is not
in accordance with the regulations of this part; or
(2) Require withholding taking any action that is not in accordance
with this part.
(d) No provision or delegation in these regulations will preclude
the Administrator or a designee or other such person, from determining
any question arising under this part, or from reversing or modifying
any determination made under this part.
(e) Absent a delegation to the contrary, this part will be
administered by the Deputy Administrator for Farm Programs of FSA on
behalf of the Administrator of FSA or the Secretary, but nothing in
this part will inhibit the ability of the Administrator of FSA or the
person holding the equivalent position in the event of a reorganization
to delegate the functions of DAFP under these regulations to another
person. Likewise, nothing shall inhibit the ability of the Secretary to
reassign any duties with respect to the designations of disasters under
this part.
Sec. 759.2 Purpose.
(a) This part specifies the types of incidents that can result in
an area being determined a disaster area, which under other regulations
makes qualified farmers in such areas eligible for Emergency loans (EM)
or eligible for such other assistance that may be available, based on
Secretarial disaster designations. Nothing in this part overrides
provision of those regulations that govern the actual administration
and availability of the disaster assistance regulations.
(b) This part specifies the responsibility of the County Emergency
Board (CEB), State Emergency Board (SEB), and the State Executive
Director (SED) in regard to Secretarial Designations with regards to
disasters. It also addresses matters relating to the handling of a
Presidential declaration of disaster or the imposition of a USDA
quarantine by the Secretary with respect to triggering the availability
of EM loans.
Sec. 759.3 Abbreviations and definitions.
(a) Abbreviations. The following abbreviations apply to this part.
CEB means the County Emergency Board.
CED means the County Executive Director.
DAFP means the Deputy Administrator for Farm Programs of the Farm
Service Agency.
EM means Emergency loan administered under 7 CFR part 764.
FSA means the Farm Service Agency.
LAR means the Loss Assessment Report.
SEB means the State Emergency Board.
SED means the State Executive Director.
USDA means the United States Department of Agriculture.
(b) Definitions. The following definitions apply to this part.
Administrator means the Administrator of FSA.
Contiguous county is used in reference to a primary county as
defined in this section. A contiguous county is any county whose
boundary touches at any point with that of the primary county. For
programs other than the EM Program, disaster assistance regulations
will specify whether benefits will be available only in the primary
counties or also in the contiguous counties. For the EM Program that
issue is addressed in Sec. 759.6, unless specified otherwise in the
disaster assistance regulations for other programs or in Sec. 759.6
for the EM Program, only the ``primary'' county will be considered the
qualifying ``disaster county.'' Therefore, if the disaster assistance
regulations specify that they cover the disaster area and contiguous
counties, then the only eligible counties would be the primary county
and those contiguous to that
[[Page 41255]]
county. Coverage would not include coverage of those counties that are
in turn contiguous to those counties that are contiguous to the primary
county.
County is used when referring to a geographical area, a local
administrative subdivision of a State or a similar political
subdivision of the United States generally considered to be in county
usage, for example, it includes an area referred to as a ``county'' or
``parish.'' Except where otherwise specified, the use of the term
county or similar political subdivision is for administrative purposes
only.
CEB is comprised of the representatives of several USDA agencies
that have responsibilities for reporting the occurrence of, and
assessing the damage caused by, a natural disaster, and for requesting
approval in declaring a county a disaster area.
CED is the person in charge of administering the local FSA county
office for a particular county.
Disaster area is the county or counties declared or designated as a
disaster area as a result of natural disaster related losses. The
disaster area only includes the primary counties, but benefits may be
available in the counties contiguous to the primary county if so
provided by the disaster assistance regulations or, in the case of the
EM Program, in Sec. 759.6.
LAR is a loss assessment report prepared by the CEB relating to the
State and county where the potential disaster occurred and for which
county or counties the CEB is responsible. The LAR includes as
applicable, but is not limited to, starting and ending dates of the
disaster, crop year affected, type of disaster incident, area of county
affected by disaster; total number of farms affected, crop loss or
pasture loss data associated with the applicable disaster (or both
types of losses), livestock destroyed, and other property losses.
Natural disaster is a disaster in which unusual and adverse weather
conditions or other natural phenomena have substantially affected
farmers by causing severe physical losses, severe production losses, or
both.
Primary county is a county determined to be a disaster area.
Presidential declaration is a declaration of a disaster by the
President under the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5121-2) requiring Federal emergency
assistance to supplement State and local efforts to save lives and
protect property, public health and safety, or to avert or lessen the
threat of a disaster.
Production losses (severe) within a county are those in which there
has been a reduction county-wide of at least a 30 percent or more loss
of production of at least one crop in the county.
SEB means the State Emergency Board which is comprised of the
representatives of several USDA agencies having emergency program
responsibilities at the State level. The board is required to respond
to emergencies and carry out the Secretary's emergency preparedness
responsibilities.
SED is the person who serves as the Chairperson of the USDA SEB in
each State, is responsible for providing the leadership and
coordination for all USDA emergency programs at the State level, and is
subject to the supervision of DAFP.
Severe physical losses means, for the purpose of determining an
Administrator's declaration of physical loss, losses that consist of
severe damage to, or destruction of: Physical farm property including
farmland (except sheet erosion); structures on the land including, but
not limited to, building, fences, dams; machinery, equipment, supplies,
and tools; livestock, livestock products, poultry and poultry products;
harvested crops and stored crops.
Substantially affected when used to refer to producers and to the
relationship of a particular producer to a particular disaster means a
producer who has sustained qualifying physical or production losses, as
defined in this section, as a result of the natural disaster.
U.S. Drought Monitor is a system for classifying drought severity
according to a range of abnormally dry to exceptional drought. It is a
collaborative effort between Federal and academic partners that is
produced on a weekly basis to synthesize multiple indices, outlooks,
and drought impacts on a map and in narrative form. This synthesis of
indices is reported by the National Drought Mitigation Center.
United States means each of the several States, the Commonwealth of
Puerto Rico, the Virgin Islands of the United States, Guam, American
Samoa, and the Commonwealth of the Northern Mariana Islands. Extension
of disaster assistance, following a disaster designation, to insular
areas of the United States not covered by this definition of ``United
States'' will be only as authorized by law, and as determined by the
Administrator on behalf of the Secretary to be appropriate.
Sec. 759.5 Secretarial disaster area determination and notification
process.
(a) U.S. Drought Monitor. With respect to drought and without
requiring an LAR:
(1) If any portion of a county is physically located in an area
with a Drought Monitor Intensity Classification value of D3 (drought-
extreme) or higher during any part of the growing season of the crops
affected by the disaster in the county, then the county will be
designated a disaster area by the Secretary.
(2) If any portion of a county meets the threshold Drought Monitor
Intensity Classification value of D2 (drought-severe) for at least 8
consecutive weeks during the growing season of affected crops, then the
county will be designated a disaster area by the Secretary.
(b) CEB and SEB recommendations. In instances where counties have
been impacted by a disaster but the county has not been designated a
disaster area under the provisions of paragraph (a) of this section,
CEB will make a disaster designation recommendation request to SEB when
a disaster has resulted in severe production losses. The determination
of the sufficiency of the production losses will be governed by the
provisions in paragraph (c) of this section. The CEB may make such
efforts as are needed to identify counties that have been impacted and
had such production losses. A farmer, Indian Tribal Council, or local
governing body may initiate the process by reporting production losses
or drought conditions to CEB and suggesting that there be a
recommendation in favor of designating a county as a disaster area.
Recommendations by a CEB in favor of a disaster designation by a CEB
under this paragraph are subject to the following:
(1) A LAR is required as part of a CEB disaster designation
request. CEB will submit a disaster designation request with a LAR to
SEB for review and recommendation for approval by the Secretary. CEB's
written request and SEB recommendation must be submitted within three
months of the last day of the occurrence of a natural disaster.
(2) If SEB determines a qualifying natural disaster and loss have
occurred, SEB will forward the recommendation to the Administrator. The
natural disaster may include drought conditions that were not
sufficiently severe to meet the criteria in paragraph (a) of this
section. Since the U.S. Drought Monitor tracks only drought conditions,
not specifically agricultural losses resulting from those conditions,
it is possible for
[[Page 41256]]
a drought that does not meet the criteria in paragraph (a) of this
section to result in production losses that constitute a natural
disaster.
(3) The Secretary or the Secretary's designee will make disaster
area determinations. The Secretary may delegate the authority to the
SED. In such case, the SED will act on behalf of the Secretary, subject
to review by DAFP as may be appropriate and consistent with the
delegation. The delegation of authority to the SED may be revoked by
the authority making that delegation or by other authorized person. In
all cases, DAFP may reverse any SED determination made in accordance
with this section unless the delegation to the SED specifies that such
review is not allowed.
(c) Eligible production losses. For purposes of making
determinations under paragraph (b) of this section, in order for an
area to be declared a disaster area under paragraph (b) of this section
based on production losses, the county must have had production losses
of 30 percent of at least one crop in the county as the result of a
natural disaster.
(d) Discretionary exception to production losses for designating a
county as a disaster county. For purposes of the EM program only,
unless otherwise specified in the designation, a county may be
designated by DAFP as a designated disaster county even though the
conditions specified in paragraphs (a) through (c) of this section are
not present so long as the disaster has otherwise produced such
significant production losses, or other such extenuating circumstances
so as to justify, in the opinion of the Secretary, the designation of a
county as a disaster area. In making this determination, the Secretary
may consider all relevant factors including such factors as the nature
and extent of production losses; the number of farmers who have
sustained qualifying production losses; the number of farmers that
other lenders in the county indicate they will not be in position to
provide emergency financing; whether the losses will cause undue
hardship to a certain segment of farmers in the county; whether damage
to particular crops has resulted in undue hardship; whether other
Federal or State benefit programs, which are being made available due
to the same disaster, will consequently lessen undue hardship and the
demand for EM; and any other factors considered relevant.
Sec. 759.6 EM to be made available.
(a) For purposes of the EM Program under part 764, subpart I, of
this chapter, a county will be considered an eligible disaster area as
designated by FSA for coverage of the EM Program as follows:
(1) Secretarial designations. When production losses meet the
requirements in Sec. 759.5 and the county has been designated as a
disaster area for that reason, or when the discretionary exception to
production losses for EM under Sec. 759.5(d) has been exercised, the
primary and contiguous counties will be areas in which otherwise
eligible producers can receive EM loans.
(2) Physical loss notification. When only qualifying physical
losses occur, the SED will submit a request to the FSA Administrator to
make a determination that a natural disaster has occurred in a county,
resulting in severe physical losses. If the FSA Administrator
determines that such a natural disaster has occurred, then EM can be
made available to eligible farmers for physical losses only in the
primary county (the county that was the subject of that determination)
and the counties contiguous to that county.
(3) USDA quarantine. Any quarantine imposed by the Secretary of
Agriculture under the Plant Protection Act or the animal quarantine
laws, as defined in section 2509 of the Food, Agriculture,
Conservation, and Trade Act of 1990, automatically authorizes EM for
production and physical losses resulting from the quarantine in a
primary county (the county in which the quarantine was in force) and
(where the quarantine effects extend beyond that county) the counties
contiguous to that primary county.
(4) Presidential declaration. Whenever the President declares a
Major Disaster Declaration or an Emergency Declaration, FSA will make
EM available to eligible applicants in declared and contiguous
counties, provided:
(i) The Presidential declaration is not solely for Category A or
Category B Public Assistance or Hazard Mitigation Grant Assistance, and
(ii) The Presidential Major Disaster declaration is for losses due
to severe, general disaster conditions including but not limited to
conditions such as flood, hurricane, or earthquake.
(b) [Reserved]
PART 762--GUARANTEED FARM LOANS
0
2. The authority citation for part 762 would continue to read as
follows:
Authority: 5 U.S.C. 301 and 7 U.S.C. 1989.
Sec. 762.106 [Amended]
0
3. Amend Sec. 762.106(b)(2) and (c)(4) by removing the reference
``part 1945, subpart A of this title'' and adding in its place each
time it appears ``Sec. 761.2(b) and part 759 of this chapter''.
CHAPTER XVIII--RURAL HOUSING SERVICE, RURAL BUSINESS-COOPERATIVE
SERVICE, RURAL UTILITIES SERVICE, AND FARM SERVICE AGENCY, DEPARTMENT
OF AGRICULTURE
PART 1945 [REMOVED]
0
4. Remove part 1945.
Signed on July 10, 2012.
Karis T. Gutter,
Under Secretary, Farm and Foreign Agricultural Services.
Signed on July 10, 2012.
Dallas Tonsager,
Under Secretary, Rural Development.
[FR Doc. 2012-17137 Filed 7-12-12; 8:45 am]
BILLING CODE 3410-05-P