Domestic Dates Produced or Packed in Riverside County, CA; Decreased Assessment Rate, 1130-1133 [2013-00185]
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Federal Register / Vol. 78, No. 5 / Tuesday, January 8, 2013 / Rules and Regulations
give preliminary notice prior to putting
this rule into effect, and that good cause
exists for not postponing the effective
date of this rule until 30 days after
publication in the Federal Register
because: (1) This interim rule is a
relaxation in the apricot handling
regulations and should be in place as
soon as possible for the 2012–13 fiscal
period; (2) handlers need to know as
soon as possible that they are free to
market their apricots without regard to
the order’s handling regulations; (3) this
issue has been widely discussed at
various industry and association
meetings and the Committee has kept
the industry well informed; (4) handlers
are aware of this rule, which was
recommended at a public meeting; and
(5) this rule provides a 60-day comment
period and any comments received will
be considered prior to finalization of
this rule.
List of Subjects in 7 CFR Part 922
Apricots, Marketing agreements,
Reporting and recordkeeping
requirements.
For the reasons set forth in the
preamble, 7 CFR part 922 is amended as
follows:
PART 922—APRICOTS GROWN IN
DESIGNATED COUNTIES IN
WASHINGTON
1. The authority citation for 7 CFR
part 922 continues to read as follows:
■
Authority: 7 U.S.C. 601–674.
§§ 922.111 and 922.321
[Suspended]
2. In Part 922, §§ 922.111 and 922.321
are suspended in their entirety from
January 9, 2013 through March 31, 2013.
■
Dated: January 2, 2013.
David R. Shipman,
Administrator, Agricultural Marketing
Service.
[FR Doc. 2013–00129 Filed 1–7–13; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 987
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1 IR]
Domestic Dates Produced or Packed in
Riverside County, CA; Decreased
Assessment Rate
Agricultural Marketing Service,
USDA.
ACTION: Interim rule with request for
comments.
AGENCY:
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This rule decreases the
assessment rate established for the
California Date Administrative
Committee (Committee) for the 2012–13
and subsequent crop years from $1.00 to
$0.90 per hundredweight of dates
handled. The Committee locally
administers the marketing order which
regulates the handling of dates grown or
packed in Riverside County, California.
Assessments upon date handlers are
used by the Committee to fund
reasonable and necessary expenses of
the program. The crop year begins
October 1 and ends September 30. The
assessment rate will remain in effect
indefinitely unless modified,
suspended, or terminated.
DATES: Effective January 9, 2013.
Comments received by March 11, 2013,
will be considered prior to issuance of
a final rule.
ADDRESSES: Interested persons are
invited to submit written comments
concerning this rule. Comments must be
sent to the Docket Clerk, Marketing
Order Agreement Division, Fruit and
Vegetable Programs, AMS, USDA, 1400
Independence Avenue SW., STOP 0237,
Washington, DC 20250–0237; Fax: (202)
720–8938; or Internet: https://
www.regulations.gov. Comments should
reference the docket number and the
date and page number of this issue of
the Federal Register and will be
available for public inspection in the
Office of the Docket Clerk during regular
business hours, or can be viewed at:
https://www.regulations.gov. All
comments submitted in response to this
rule will be included in the record and
will be made available to the public.
Please be advised that the identity of the
individuals or entities submitting the
comments will be made public on the
Internet at the address provided above.
FOR FURTHER INFORMATION CONTACT: Jeff
Smutny, Marketing Specialist, or Kurt J.
Kimmel, Regional Director, California
Marketing Field Office, Marketing Order
and Agreement Division, Fruit and
Vegetable Program, AMS, USDA;
Telephone: (559) 487–5901, Fax: (559)
487–5906, or Email:
Jeffrey.Smutny@ams.usda.gov or
Kurt.Kimmel@ams.usda.gov.
Small businesses may request
information on complying with this
regulation by contacting Laurel May,
Marketing Order and Agreement
Division, Fruit and Vegetable Program,
AMS, USDA, 1400 Independence
Avenue SW., STOP 0237, Washington,
DC 20250–0237; Telephone: (202) 720–
2491, Fax: (202) 720–8938, or Email:
Laurel.May@ams.usda.gov.
SUPPLEMENTARY INFORMATION: This rule
is issued under Marketing Agreement
SUMMARY:
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and Order No. 987, both as amended (7
CFR part 987), regulating the handling
of dates produced or packed in
Riverside County, California, hereinafter
referred to as the ‘‘order.’’ The order is
effective under the Agricultural
Marketing Agreement Act of 1937, as
amended (7 U.S.C. 601–674), hereinafter
referred to as the ‘‘Act.’’
The Department of Agriculture
(USDA) is issuing this rule in
conformance with Executive Order
12866.
This rule has been reviewed under
Executive Order 12988, Civil Justice
Reform. Under the marketing order now
in effect, Riverside County, California
date handlers are subject to assessments.
Funds to administer the order are
derived from such assessments. It is
intended that the assessment rate as
issued herein will be applicable to all
assessable dates beginning October 1,
2012, and continue until amended,
suspended, or terminated.
The Act provides that administrative
proceedings must be exhausted before
parties may file suit in court. Under
section 608c(15)(A) of the Act, any
handler subject to an order may file
with USDA a petition stating that the
order, any provision of the order, or any
obligation imposed in connection with
the order is not in accordance with law
and request a modification of the order
or to be exempted therefrom. Such
handler is afforded the opportunity for
a hearing on the petition. After the
hearing, USDA would rule on the
petition. The Act provides that the
district court of the United States in any
district in which the handler is an
inhabitant, or has his or her principal
place of business, has jurisdiction to
review USDA’s ruling on the petition,
provided an action is filed not later than
20 days after the date of the entry of the
ruling.
This rule decreases the assessment
rate established for the Committee for
the 2012–13 and subsequent crop years
from $1.00 to $0.90 per hundredweight
of dates.
The California date marketing order
provides authority for the Committee,
with the approval of USDA, to formulate
an annual budget of expenses and
collect assessments from handlers to
administer the program. The members
of the Committee are producers and
handlers of Riverside County, California
dates. They are familiar with the
Committee’s needs and with the costs
for goods and services in their local area
and are thus in a position to formulate
an appropriate budget and assessment
rate. The assessment rate is formulated
and discussed in a public meeting.
Thus, all directly affected persons have
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an opportunity to participate and
provide input.
For the 2010–11 and subsequent crop
years, the Committee recommended,
and USDA approved, an assessment rate
that would continue in effect from crop
year to crop year unless modified,
suspended, or terminated by USDA
upon recommendation and information
submitted by the Committee or other
information available to USDA.
The Committee met on June 12, 2012,
and unanimously recommended 2012–
13 expenditures of $260,000 and an
assessment rate of $0.90 per
hundredweight of Riverside County,
California dates. In comparison, last
year’s budgeted expenditures were
$265,000. The assessment rate of $0.90
is $0.10 lower than the rate currently in
effect. The Committee recommended a
lower assessment rate because the 2012–
13 crop is expected to be larger than the
previous year. Income generated
through the lower assessment rate
combined with cull surplus
contributions and funds contributed by
the California Date Commission for
shared marketing activities, should be
sufficient to cover anticipated 2012–13
expenses.
Proceeds from sales of cull dates are
deposited into a surplus account for
subsequent use by the Committee in
covering the surplus pool share of the
Committee’s expenses. Handlers may
also dispose of cull dates of their own
production within their own livestockfeeding operation; otherwise, such cull
dates must be shipped or delivered to
the Committee for sale to non-human
food product outlets. Pursuant to
§ 987.72(b), the Committee is authorized
to temporarily use funds derived from
assessments to defray expenses incurred
in disposing of surplus dates. All such
expenses are required to be deducted
from proceeds obtained by the
Committee from the disposal of surplus
dates. For the 2012–13 crop year, the
Committee estimated that $3,000 from
the surplus account would be needed to
temporarily defray expenses incurred in
disposing of surplus dates.
The major expenditures
recommended by the Committee for the
2012–13 crop year include $110,000 for
generic marketing promotions, $83,520
for general and administrative expenses,
$43,800 for nutrition marketing
programs, $12,680 for a contingency
fund, and $5,000 for licensing renewal.
Budgeted expenses for these items in
2011–12 were $96,300 for generic
marketing promotions, $90,000 for
general and administrative expenses,
$73,600 for nutrition marketing
programs, and $5,100 for marketing
contingency.
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The assessment rate recommended by
the Committee was derived based upon
the anticipated size of the 2012–13 crop,
the Committee’s estimates of the
incoming reserve, other income, and
anticipated expenses. Date shipments
for the year are estimated at 26,500,000
pounds which should provide $238,500
in assessment income. Income derived
from handler assessments, along with a
$3,000 reimbursement for the cost of
disposing of surplus culls, and a
$40,000 contribution from the California
Date Commission for shared marketing
expenses, should be adequate to cover
budgeted expenses.
Section 987.72(d) states that the
Committee may maintain a monetary
reserve not to exceed the average of one
year’s expenses incurred during the
most recent five preceding crop years,
except that an established reserve need
not be reduced to conform to any
recomputed average. Funds in the
reserve are available for the Committee’s
use during the crop year to cover
budgeted expenses as necessary or for
other purposes deemed appropriate by
USDA. The Committee expects to carry
a $15,000 reserve into the 2012–13 crop
year. They expect to add $21,500 to the
reserve during the year, for a desired
carryout of approximately $36,500,
which is well below the limit specified
in the order.
The assessment rate established in
this rule will continue in effect
indefinitely unless modified,
suspended, or terminated by USDA
upon recommendation and information
submitted by the Committee or other
available information.
Although this assessment rate is
effective for an indefinite period, the
Committee will continue to meet prior
to or during each crop year to
recommend a budget of expenses and
consider recommendations for
modification of the assessment rate. The
dates and times of Committee meetings
are available from the Committee or
USDA. Committee meetings are open to
the public and interested persons may
express their views at these meetings.
USDA will evaluate Committee
recommendations and other available
information to determine whether
modification of the assessment rate is
needed. Further rulemaking will be
undertaken as necessary. The
Committee’s 2012–13 budget and those
for subsequent crop years will be
reviewed and, as appropriate, approved
by USDA.
Initial Regulatory Flexibility Analysis
Pursuant to requirements set forth in
the Regulatory Flexibility Act (RFA) (5
U.S.C. 601–612), the Agricultural
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Marketing Service (AMS) has
considered the economic impact of this
rule on small entities. Accordingly,
AMS has prepared this initial regulatory
flexibility analysis.
The purpose of the RFA is to fit
regulatory actions to the scale of
business subject to such actions in order
that small businesses will not be unduly
or disproportionately burdened.
Marketing orders issued pursuant to the
Act, and the rules issued thereunder, are
unique in that they are brought about
through group action of essentially
small entities acting on their own
behalf.
There are approximately 79 producers
of dates in the production area and 11
handlers subject to regulation under the
marketing order. Small agricultural
producers are defined by the Small
Business Administration (13 CFR
121.201) as those having annual receipts
less than $750,000, and small
agricultural service firms are defined as
those whose annual receipts are less
than $7,000,000.
According to the National
Agricultural Statistics Service (NASS),
data for the most recently completed
crop year (2011) shows that about 3.68
tons, or 7,360 pounds, of dates were
produced per acre. The 2011 grower
price published by the NASS was
$1,320 per ton, or $.66 per pound. Thus,
the value of date production per acre in
2011 averaged about $4,858 (7,360
pounds times $.66 per pound). At that
average price, a producer would have to
farm over 154 acres to receive an annual
income from dates of $750,000
($750,000 divided by $4,858 per acre
equals 154 acres). According to
Committee staff, the majority of
California date producers farm less than
154 acres. Thus, it can be concluded
that the majority of date producers
could be considered small entities.
According to data from the Committee
staff, the majority of handlers of
California dates may also be considered
small entities.
This rule decreases the assessment
rate established for the Committee and
collected from handlers for the 2012–13
and subsequent crop years from $1.00 to
$0.90 per hundredweight of dates
handled. The Committee unanimously
recommended 2012–13 expenditures of
$260,000 and an assessment rate of
$0.90 per hundredweight of dates,
which is $0.10 lower than the 2011–12
rate, currently in effect. The quantity of
assessable dates for the 2012–13 crop
year is estimated at 26,500,000 pounds.
Thus, the $0.90 rate should provide
$238,500 in assessment income. Income
derived from handler’s assessments,
along with the $3,000 contribution from
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the surplus program, and the $40,000
contribution for shared marketing
expenses should be adequate to meet
the 2012–13 crop year expenses.
The major expenditures
recommended by the Committee for the
2012–13 crop year include $110,000 for
generic marketing promotions, $83,520
for general and administrative expenses,
$43,800 for nutrition marketing
programs, $12,680 for a contingency
fund, and $5,000 for licensing renewal.
Budgeted expenses for these items in
2011–12 were $96,300 for generic
marketing promotions, $90,000 for
general and administrative expenses,
$73,600 for nutrition marketing
programs, and $5,100 for marketing
contingency.
The Committee recommended a lower
assessment rate because the 2012–13
crop is expected to be larger than the
previous year. As mentioned earlier,
date shipments for the year are
estimated at 26,500,000 pounds which
should provide $238,500 in assessment
income. Income derived from handler
assessments, cull surplus contributions,
and funds contributed by the California
Date Commission for shared marketing
activities, should be sufficient to cover
anticipated 2012–13 expenses.
Section 987.72(d) states that the
Committee may maintain a monetary
reserve not to exceed the average of one
year’s expenses incurred during the
most recent five preceding crop years,
except that an established reserve need
not be reduced to conform to any
recomputed average. Funds in the
reserve are available for the Committee’s
use during the crop year to cover
budgeted expenses as necessary or for
other purposes deemed appropriate by
USDA. The Committee expects to carry
a $15,000 reserve into the 2012–13 crop
year. They expect to add $21,500 to the
reserve during the year, for a desired
carryout of approximately $36,500,
which is well below the limit specified
in the order.
The Committee reviewed and
unanimously recommended 2012–13
crop year expenditures of $260,000.
Prior to arriving at this budget, the
Committee considered information from
various sources, such as the
Committee’s Marketing Subcommittee,
and Budget Committee. Alternative
expenditure levels were discussed by
these groups, based upon relative value
of various marketing projects to the date
industry. The assessment rate of $0.90
per hundredweight of dates was then
derived, based upon the anticipated
2012–13 crop size, and the Committee’s
estimates of the incoming reserve, other
income, and anticipated expenses.
Assessing at the $0.90 per
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hundredweight of dates will generate
approximately $21,500 less than the
anticipated expenses, which the
Committee determined to be acceptable,
as other sources of income should
provide adequate funds to cover
expenses.
A review of historical information and
preliminary information pertaining to
the upcoming crop year indicates that
the grower price for the 2012–13 season
could range between $1,180 and $1,320
per ton of dates. Therefore, the
estimated assessment revenue for the
2012–13 crop year as a percentage of
total grower revenue could range
between 1.5 and 1.4 percent.
This action decreases the assessment
obligation imposed on handlers.
Assessments are applied uniformly on
all handlers, and some of the costs may
be passed on to producers. However,
decreasing the assessment rate reduces
the burden on handlers, and may reduce
the burden on producers. In addition,
the Committee’s meeting was widely
publicized throughout the California
date industry and all interested persons
were invited to attend the meeting and
participate in Committee deliberations
on all issues. Like all Committee
meetings, the June 12, 2012, meeting
was a public meeting and all entities,
both large and small, were able to
express views on this issue. Finally,
interested persons are invited to submit
comments on this interim final rule,
including the regulatory and
informational impacts of this action on
small businesses.
In accordance with the Paperwork
Reduction Act of 1995, (44 U.S.C.
Chapter 35), the order’s information
collection requirements have been
previously approved by the Office of
Management and Budget (OMB) and
assigned OMB No. 0581–0178. No
changes in those requirements as a
result of this action are necessary.
Should any changes become necessary,
they would be submitted to OMB for
approval.
This action imposes no additional
reporting or recordkeeping requirements
on either small or large Riverside
County, California, date handlers. As
with all Federal marketing order
programs, reports and forms are
periodically reviewed to reduce
information requirements and
duplication by industry and public
sector agencies.
AMS 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.
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USDA has not identified any relevant
Federal rules that duplicate, overlap, or
conflict with this rule.
A small business guide on complying
with fruit, vegetable, and specialty crop
marketing agreements and orders may
be viewed at: https://www.ams.usda.gov/
MarketingOrdersSmallBusinessGuide.
Any questions about the compliance
guide should be sent to Laurel May at
the previously mentioned address in the
FOR FURTHER INFORMATION CONTACT
section.
After consideration of all relevant
material presented, including the
information and recommendation
submitted by the Committee and other
available information, it is hereby found
that this rule, as hereinafter set forth,
will tend to effectuate the declared
policy of the Act.
Pursuant to 5 U.S.C. 553, it is also
found and determined upon good cause
that it is impracticable, unnecessary,
and contrary to the public interest to
give preliminary notice prior to putting
this rule into effect, and that good cause
exists for not postponing the effective
date of this rule until 30 days after
publication in the Federal Register
because: (1) The 2012–13 crop year
begins on October 1, 2012, and the
marketing order requires that the rate of
assessment for each crop year apply to
all assessable dates handled during such
crop year; (2) the action decreases the
assessment rate for assessable dates
beginning with the 2012–13 crop year;
(3) handlers are aware of this action
which was unanimously recommended
by the Committee at a public meeting
and is similar to other assessment rate
actions issued in past years; and (4) this
interim final rule provides a 60-day
comment period, and all comments
timely received will be considered prior
to finalization of this rule.
List of Subjects in 7 CFR Part 987
Dates, Marketing agreements,
Reporting and recordkeeping
requirements.
For the reasons set forth in the
preamble, 7 CFR part 987 is amended as
follows:
PART 987—DOMESTIC DATES
PRODUCED OR PACKED IN
RIVERSIDE COUNTY, CALIFORNIA
1. The authority citation for 7 CFR
part 987 continues to read as follows:
■
Authority: 7 U.S.C. 601–674.
2. Section 987.339 is revised to read
as follows:
■
§ 987.339
Assessment rate.
On and after October 1, 2012, an
assessment rate of $0.90 per
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hundredweight is established for
Riverside County, California dates.
telephone: (202) 267–3073; email:
karen.petronis@faa.gov.
Dated: January 2, 2013.
David R. Shipman,
Administrator, Agricultural Marketing
Service.
SUPPLEMENTARY INFORMATION:
Authority for This Rulemaking
[FR Doc. 2013–00185 Filed 1–7–13; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Parts 21 and 36
[Docket No. FAA–2011–0629; Amdt. Nos.
21–97; 36–29]
RIN 2120–AJ76
Noise Certification Standards for
Tiltrotors
Federal Aviation
Administration (FAA), DOT.
ACTION: Final rule.
AGENCY:
This rule amends the
regulations governing noise certification
standards for issuing type and
airworthiness certificates for a new
civil, hybrid airplane-rotorcraft known
as the tiltrotor. This noise standard
establishes new noise limits and
procedures as the basis to ensure
consistent aviation noise reduction
technology is incorporated in tiltrotors
for environmental protection. It
provides uniform noise certification
standards for tiltrotors certificated in the
United States and harmonizes the U.S.
regulations with the standards of the
International Civil Aviation
Organization’s (ICAO) Annex 16.
DATES: Effective March 11, 2013.
ADDRESSES: For information on where to
obtain copies of rulemaking documents
and other information related to this
final rule, see ‘‘How To Obtain
Additional Information’’ in the
SUPPLEMENTARY INFORMATION section of
this document.
FOR FURTHER INFORMATION CONTACT: For
technical questions concerning this final
rule contact Sandy Liu, AEE–100, Office
of Environment and Energy, Federal
Aviation Administration, 800
Independence Avenue SW.,
Washington, DC 20591; telephone: (202)
493–4864; facsimile (202) 267–5594;
email: sandy.liu@faa.gov.
For legal questions concerning this
final rule contact Karen Petronis, AGC–
200, Office of the Chief Counsel,
International Law, Legislation, and
Regulations Division, Federal Aviation
Administration, 800 Independence
Avenue SW., Washington, DC 20591;
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SUMMARY:
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The FAA’s authority to issue rules on
aviation safety is found in Title 49 of the
United States Code. Subtitle I, Section
106 describes the authority of the FAA
Administrator. Subtitle VII, Aviation
Programs, describes in more detail the
scope of the agency’s authority.
This rulemaking is promulgated
under the authority described in
Subtitle VII, Part A, Subpart III, Section
44715, Controlling aircraft noise and
sonic boom. Under that section, the
FAA is charged with prescribing
regulations to measure and abate aircraft
noise. This regulation is within the
scope of that authority since it would
establish new noise certification test
procedures and noise limits for a new
class of aircraft. Applicants for type
certificates, changes in type design, and
airworthiness certificates for tiltrotors
are required to comply with these new
regulations.
Overview of Final Rule
The standards in this final rule apply
to the issuance of an original type
certificate, changes to a type certificate,
and the issuance of a standard
airworthiness certificate for tiltrotors.
This final rule creates noise certification
standards that are applicable to all
tiltrotors, such as the AgustaWestland
Model AW609 currently under
development. These regulations
incorporate the same standards as ICAO
Annex 16, Volume 1, Chapter 13,
Attachment F (Amendment 7) for
tiltrotors, consistent with the FAA goal
of harmonizing U.S. regulations with
international standards.
Background
A new aircraft type known as a
tiltrotor is currently in production after
more than six decades of research and
development. The aircraft uses rotating
nacelles, a hybrid of propellers and
helicopter rotors, to provide both lift
and propulsive force. The tiltrotor is
designed to function as a helicopter for
takeoff and landing and as an airplane
during the en-route portion of flight
operations.
The most recognizable tiltrotor
operating today is the V–22 Osprey used
by the U.S. Marines and the U.S. Air
Force. The V–22 Osprey was designed
for the U.S. Department of Defense
Special Operations Forces and can
transport 24 fully equipped troops. The
proposed civil version of the tiltrotor
would carry up to nine passengers.
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The tiltrotor concept was first
explored for the U.S. Army in the mid1950s as a convertiplane concept that
incorporated mixed vertical and forward
flight capabilities. In 1958, Bell
Helicopter Textron Inc. (Bell) of Fort
Worth, Texas developed the XV–3
tiltrotor for a joint research program
between the U.S. Army and the U.S. Air
Force. The Bell XV–3 completed a
successful full conversion from vertical
flight to forward cruise and
demonstrated the feasibility of tiltrotor
technology. Following the successful
full conversion of the Bell XV–3, the
U.S. Army and National Aeronautics
and Space Administration awarded Bell
a prototype development contract in the
mid 1970s to build two Bell XV–15
tiltrotor demonstrator aircraft. These
tiltrotor aircraft served as predecessors
to the V–22 Osprey to demonstrate
mature tiltrotor technology and flight
capabilities.
ICAO Noise Certification Standards
ICAO is the international body with
responsibility for the development of
International Standards and
Recommended Practices pursuant to the
Convention on International Civil
Aviation (the Chicago Convention).
Consistent with their obligations under
the Chicago Convention, Contracting
States agree to implement ICAO
standards in their national regulations
to the extent practicable. The standards
for aircraft noise are contained in Annex
16, Environmental Protection, Volume
1, Aircraft Noise.
In anticipation of civil tiltrotor
production, ICAO’s Committee on
Aviation Environmental Protection
(CAEP) chartered the Tiltrotor Task
Group (TRTG) in 1997 to develop noise
certification guidelines for tiltrotors.
The FAA participated in the TRTG and
its development of the tiltrotor noise
guidelines from 1997 to 2000. The ICAO
tiltrotor guidelines used the same noise
limits that the United States had
incorporated into part 36, Appendix H
for helicopter noise certification. The
ICAO has included additional
requirements that are unique to the
design of tiltrotors.
On June 29, 2001, the TRTG’s
guidelines were adopted by the ICAO
Council for incorporation into Annex
16, Volume 1, Chapter 13, Attachment
F (Amendment 7). The ICAO guidelines
became effective on October 29, 2001,
with an applicability date of March 21,
2002.
Statement of the Problem
Current regulations in part 36 do not
contain noise certification requirements
specific to the tiltrotor and its unique
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]]>Agencies
[Federal Register Volume 78, Number 5 (Tuesday, January 8, 2013)]
[Rules and Regulations]
[Pages 1130-1133]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-00185]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 987
[Docket No. AMS-FV-12-0035; FV12-987-1 IR]
Domestic Dates Produced or Packed in Riverside County, CA;
Decreased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim rule with request for comments.
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SUMMARY: This rule decreases the assessment rate established for the
California Date Administrative Committee (Committee) for the 2012-13
and subsequent crop years from $1.00 to $0.90 per hundredweight of
dates handled. The Committee locally administers the marketing order
which regulates the handling of dates grown or packed in Riverside
County, California. Assessments upon date handlers are used by the
Committee to fund reasonable and necessary expenses of the program. The
crop year begins October 1 and ends September 30. The assessment rate
will remain in effect indefinitely unless modified, suspended, or
terminated.
DATES: Effective January 9, 2013. Comments received by March 11, 2013,
will be considered prior to issuance of a final rule.
ADDRESSES: Interested persons are invited to submit written comments
concerning this rule. Comments must be sent to the Docket Clerk,
Marketing Order Agreement Division, Fruit and Vegetable Programs, AMS,
USDA, 1400 Independence Avenue SW., STOP 0237, Washington, DC 20250-
0237; Fax: (202) 720-8938; or Internet: https://www.regulations.gov.
Comments should reference the docket number and the date and page
number of this issue of the Federal Register and will be available for
public inspection in the Office of the Docket Clerk during regular
business hours, or can be viewed at: https://www.regulations.gov. All
comments submitted in response to this rule will be included in the
record and will be made available to the public. Please be advised that
the identity of the individuals or entities submitting the comments
will be made public on the Internet at the address provided above.
FOR FURTHER INFORMATION CONTACT: Jeff Smutny, Marketing Specialist, or
Kurt J. Kimmel, Regional Director, California Marketing Field Office,
Marketing Order and Agreement Division, Fruit and Vegetable Program,
AMS, USDA; Telephone: (559) 487-5901, Fax: (559) 487-5906, or Email:
Jeffrey.Smutny@ams.usda.gov or Kurt.Kimmel@ams.usda.gov.
Small businesses may request information on complying with this
regulation by contacting Laurel May, Marketing Order and Agreement
Division, Fruit and Vegetable Program, AMS, USDA, 1400 Independence
Avenue SW., STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-
2491, Fax: (202) 720-8938, or Email: Laurel.May@ams.usda.gov.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement and Order No. 987, both as amended (7 CFR part 987),
regulating the handling of dates produced or packed in Riverside
County, California, hereinafter referred to as the ``order.'' The order
is effective under the Agricultural Marketing Agreement Act of 1937, as
amended (7 U.S.C. 601-674), hereinafter referred to as the ``Act.''
The Department of Agriculture (USDA) is issuing this rule in
conformance with Executive Order 12866.
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. Under the marketing order now in effect, Riverside
County, California date handlers are subject to assessments. Funds to
administer the order are derived from such assessments. It is intended
that the assessment rate as issued herein will be applicable to all
assessable dates beginning October 1, 2012, and continue until amended,
suspended, or terminated.
The Act provides that administrative proceedings must be exhausted
before parties may file suit in court. Under section 608c(15)(A) of the
Act, any handler subject to an order may file with USDA a petition
stating that the order, any provision of the order, or any obligation
imposed in connection with the order is not in accordance with law and
request a modification of the order or to be exempted therefrom. Such
handler is afforded the opportunity for a hearing on the petition.
After the hearing, USDA would rule on the petition. The Act provides
that the district court of the United States in any district in which
the handler is an inhabitant, or has his or her principal place of
business, has jurisdiction to review USDA's ruling on the petition,
provided an action is filed not later than 20 days after the date of
the entry of the ruling.
This rule decreases the assessment rate established for the
Committee for the 2012-13 and subsequent crop years from $1.00 to $0.90
per hundredweight of dates.
The California date marketing order provides authority for the
Committee, with the approval of USDA, to formulate an annual budget of
expenses and collect assessments from handlers to administer the
program. The members of the Committee are producers and handlers of
Riverside County, California dates. They are familiar with the
Committee's needs and with the costs for goods and services in their
local area and are thus in a position to formulate an appropriate
budget and assessment rate. The assessment rate is formulated and
discussed in a public meeting. Thus, all directly affected persons have
[[Page 1131]]
an opportunity to participate and provide input.
For the 2010-11 and subsequent crop years, the Committee
recommended, and USDA approved, an assessment rate that would continue
in effect from crop year to crop year unless modified, suspended, or
terminated by USDA upon recommendation and information submitted by the
Committee or other information available to USDA.
The Committee met on June 12, 2012, and unanimously recommended
2012-13 expenditures of $260,000 and an assessment rate of $0.90 per
hundredweight of Riverside County, California dates. In comparison,
last year's budgeted expenditures were $265,000. The assessment rate of
$0.90 is $0.10 lower than the rate currently in effect. The Committee
recommended a lower assessment rate because the 2012-13 crop is
expected to be larger than the previous year. Income generated through
the lower assessment rate combined with cull surplus contributions and
funds contributed by the California Date Commission for shared
marketing activities, should be sufficient to cover anticipated 2012-13
expenses.
Proceeds from sales of cull dates are deposited into a surplus
account for subsequent use by the Committee in covering the surplus
pool share of the Committee's expenses. Handlers may also dispose of
cull dates of their own production within their own livestock-feeding
operation; otherwise, such cull dates must be shipped or delivered to
the Committee for sale to non-human food product outlets. Pursuant to
Sec. 987.72(b), the Committee is authorized to temporarily use funds
derived from assessments to defray expenses incurred in disposing of
surplus dates. All such expenses are required to be deducted from
proceeds obtained by the Committee from the disposal of surplus dates.
For the 2012-13 crop year, the Committee estimated that $3,000 from the
surplus account would be needed to temporarily defray expenses incurred
in disposing of surplus dates.
The major expenditures recommended by the Committee for the 2012-13
crop year include $110,000 for generic marketing promotions, $83,520
for general and administrative expenses, $43,800 for nutrition
marketing programs, $12,680 for a contingency fund, and $5,000 for
licensing renewal. Budgeted expenses for these items in 2011-12 were
$96,300 for generic marketing promotions, $90,000 for general and
administrative expenses, $73,600 for nutrition marketing programs, and
$5,100 for marketing contingency.
The assessment rate recommended by the Committee was derived based
upon the anticipated size of the 2012-13 crop, the Committee's
estimates of the incoming reserve, other income, and anticipated
expenses. Date shipments for the year are estimated at 26,500,000
pounds which should provide $238,500 in assessment income. Income
derived from handler assessments, along with a $3,000 reimbursement for
the cost of disposing of surplus culls, and a $40,000 contribution from
the California Date Commission for shared marketing expenses, should be
adequate to cover budgeted expenses.
Section 987.72(d) states that the Committee may maintain a monetary
reserve not to exceed the average of one year's expenses incurred
during the most recent five preceding crop years, except that an
established reserve need not be reduced to conform to any recomputed
average. Funds in the reserve are available for the Committee's use
during the crop year to cover budgeted expenses as necessary or for
other purposes deemed appropriate by USDA. The Committee expects to
carry a $15,000 reserve into the 2012-13 crop year. They expect to add
$21,500 to the reserve during the year, for a desired carryout of
approximately $36,500, which is well below the limit specified in the
order.
The assessment rate established in this rule will continue in
effect indefinitely unless modified, suspended, or terminated by USDA
upon recommendation and information submitted by the Committee or other
available information.
Although this assessment rate is effective for an indefinite
period, the Committee will continue to meet prior to or during each
crop year to recommend a budget of expenses and consider
recommendations for modification of the assessment rate. The dates and
times of Committee meetings are available from the Committee or USDA.
Committee meetings are open to the public and interested persons may
express their views at these meetings. USDA will evaluate Committee
recommendations and other available information to determine whether
modification of the assessment rate is needed. Further rulemaking will
be undertaken as necessary. The Committee's 2012-13 budget and those
for subsequent crop years will be reviewed and, as appropriate,
approved by USDA.
Initial Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS)
has considered the economic impact of this rule on small entities.
Accordingly, AMS has prepared this initial regulatory flexibility
analysis.
The purpose of the RFA is to fit regulatory actions to the scale of
business subject to such actions in order that small businesses will
not be unduly or disproportionately burdened. Marketing orders issued
pursuant to the Act, and the rules issued thereunder, are unique in
that they are brought about through group action of essentially small
entities acting on their own behalf.
There are approximately 79 producers of dates in the production
area and 11 handlers subject to regulation under the marketing order.
Small agricultural producers are defined by the Small Business
Administration (13 CFR 121.201) as those having annual receipts less
than $750,000, and small agricultural service firms are defined as
those whose annual receipts are less than $7,000,000.
According to the National Agricultural Statistics Service (NASS),
data for the most recently completed crop year (2011) shows that about
3.68 tons, or 7,360 pounds, of dates were produced per acre. The 2011
grower price published by the NASS was $1,320 per ton, or $.66 per
pound. Thus, the value of date production per acre in 2011 averaged
about $4,858 (7,360 pounds times $.66 per pound). At that average
price, a producer would have to farm over 154 acres to receive an
annual income from dates of $750,000 ($750,000 divided by $4,858 per
acre equals 154 acres). According to Committee staff, the majority of
California date producers farm less than 154 acres. Thus, it can be
concluded that the majority of date producers could be considered small
entities. According to data from the Committee staff, the majority of
handlers of California dates may also be considered small entities.
This rule decreases the assessment rate established for the
Committee and collected from handlers for the 2012-13 and subsequent
crop years from $1.00 to $0.90 per hundredweight of dates handled. The
Committee unanimously recommended 2012-13 expenditures of $260,000 and
an assessment rate of $0.90 per hundredweight of dates, which is $0.10
lower than the 2011-12 rate, currently in effect. The quantity of
assessable dates for the 2012-13 crop year is estimated at 26,500,000
pounds. Thus, the $0.90 rate should provide $238,500 in assessment
income. Income derived from handler's assessments, along with the
$3,000 contribution from
[[Page 1132]]
the surplus program, and the $40,000 contribution for shared marketing
expenses should be adequate to meet the 2012-13 crop year expenses.
The major expenditures recommended by the Committee for the 2012-13
crop year include $110,000 for generic marketing promotions, $83,520
for general and administrative expenses, $43,800 for nutrition
marketing programs, $12,680 for a contingency fund, and $5,000 for
licensing renewal. Budgeted expenses for these items in 2011-12 were
$96,300 for generic marketing promotions, $90,000 for general and
administrative expenses, $73,600 for nutrition marketing programs, and
$5,100 for marketing contingency.
The Committee recommended a lower assessment rate because the 2012-
13 crop is expected to be larger than the previous year. As mentioned
earlier, date shipments for the year are estimated at 26,500,000 pounds
which should provide $238,500 in assessment income. Income derived from
handler assessments, cull surplus contributions, and funds contributed
by the California Date Commission for shared marketing activities,
should be sufficient to cover anticipated 2012-13 expenses.
Section 987.72(d) states that the Committee may maintain a monetary
reserve not to exceed the average of one year's expenses incurred
during the most recent five preceding crop years, except that an
established reserve need not be reduced to conform to any recomputed
average. Funds in the reserve are available for the Committee's use
during the crop year to cover budgeted expenses as necessary or for
other purposes deemed appropriate by USDA. The Committee expects to
carry a $15,000 reserve into the 2012-13 crop year. They expect to add
$21,500 to the reserve during the year, for a desired carryout of
approximately $36,500, which is well below the limit specified in the
order.
The Committee reviewed and unanimously recommended 2012-13 crop
year expenditures of $260,000. Prior to arriving at this budget, the
Committee considered information from various sources, such as the
Committee's Marketing Subcommittee, and Budget Committee. Alternative
expenditure levels were discussed by these groups, based upon relative
value of various marketing projects to the date industry. The
assessment rate of $0.90 per hundredweight of dates was then derived,
based upon the anticipated 2012-13 crop size, and the Committee's
estimates of the incoming reserve, other income, and anticipated
expenses. Assessing at the $0.90 per hundredweight of dates will
generate approximately $21,500 less than the anticipated expenses,
which the Committee determined to be acceptable, as other sources of
income should provide adequate funds to cover expenses.
A review of historical information and preliminary information
pertaining to the upcoming crop year indicates that the grower price
for the 2012-13 season could range between $1,180 and $1,320 per ton of
dates. Therefore, the estimated assessment revenue for the 2012-13 crop
year as a percentage of total grower revenue could range between 1.5
and 1.4 percent.
This action decreases the assessment obligation imposed on
handlers. Assessments are applied uniformly on all handlers, and some
of the costs may be passed on to producers. However, decreasing the
assessment rate reduces the burden on handlers, and may reduce the
burden on producers. In addition, the Committee's meeting was widely
publicized throughout the California date industry and all interested
persons were invited to attend the meeting and participate in Committee
deliberations on all issues. Like all Committee meetings, the June 12,
2012, meeting was a public meeting and all entities, both large and
small, were able to express views on this issue. Finally, interested
persons are invited to submit comments on this interim final rule,
including the regulatory and informational impacts of this action on
small businesses.
In accordance with the Paperwork Reduction Act of 1995, (44 U.S.C.
Chapter 35), the order's information collection requirements have been
previously approved by the Office of Management and Budget (OMB) and
assigned OMB No. 0581-0178. No changes in those requirements as a
result of this action are necessary. Should any changes become
necessary, they would be submitted to OMB for approval.
This action imposes no additional reporting or recordkeeping
requirements on either small or large Riverside County, California,
date handlers. As with all Federal marketing order programs, reports
and forms are periodically reviewed to reduce information requirements
and duplication by industry and public sector agencies.
AMS 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.
USDA has not identified any relevant Federal rules that duplicate,
overlap, or conflict with this rule.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at: https://www.ams.usda.gov/MarketingOrdersSmallBusinessGuide. Any questions
about the compliance guide should be sent to Laurel May at the
previously mentioned address in the FOR FURTHER INFORMATION CONTACT
section.
After consideration of all relevant material presented, including
the information and recommendation submitted by the Committee and other
available information, it is hereby found that this rule, as
hereinafter set forth, will tend to effectuate the declared policy of
the Act.
Pursuant to 5 U.S.C. 553, it is also found and determined upon good
cause that it is impracticable, unnecessary, and contrary to the public
interest to give preliminary notice prior to putting this rule into
effect, and that good cause exists for not postponing the effective
date of this rule until 30 days after publication in the Federal
Register because: (1) The 2012-13 crop year begins on October 1, 2012,
and the marketing order requires that the rate of assessment for each
crop year apply to all assessable dates handled during such crop year;
(2) the action decreases the assessment rate for assessable dates
beginning with the 2012-13 crop year; (3) handlers are aware of this
action which was unanimously recommended by the Committee at a public
meeting and is similar to other assessment rate actions issued in past
years; and (4) this interim final rule provides a 60-day comment
period, and all comments timely received will be considered prior to
finalization of this rule.
List of Subjects in 7 CFR Part 987
Dates, Marketing agreements, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 987 is
amended as follows:
PART 987--DOMESTIC DATES PRODUCED OR PACKED IN RIVERSIDE COUNTY,
CALIFORNIA
0
1. The authority citation for 7 CFR part 987 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Section 987.339 is revised to read as follows:
Sec. 987.339 Assessment rate.
On and after October 1, 2012, an assessment rate of $0.90 per
[[Page 1133]]
hundredweight is established for Riverside County, California dates.
Dated: January 2, 2013.
David R. Shipman,
Administrator, Agricultural Marketing Service.
[FR Doc. 2013-00185 Filed 1-7-13; 8:45 am]
BILLING CODE 3410-02-P
