Softwood Lumber Research, Promotion, Consumer Education and Industry Information Order; Changes to the Membership of the Softwood Lumber Board, 77329-77334 [2013-30394]
Download as PDF
<![CDATA[
tkelley on DSK3SPTVN1PROD with RULES
Federal Register / Vol. 78, No. 246 / Monday, December 23, 2013 / Rules and Regulations
production research, post-harvest
research, and industry communications.
In comparison, budgeted expenses for
these items for the 2012–13 marketing
year were $797,000, $119,000, $219,000,
and $7,705,000, respectively.
The Board recommended the
increased assessment rate because the
rate currently in effect would not
generate sufficient revenue to meet its
budgeted expenses. The increased
assessment rate applied to estimated
assessable walnuts in the 2013–14
marketing year is expected to generate
sufficient revenue to meet expenses,
when combined with funds from the
financial reserve and grant funds from
FAS.
Prior to arriving at this budget, the
Board considered alternative
expenditure levels but ultimately
decided that the recommended levels
were reasonable to properly administer
the order.
According to the National
Agricultural Statistical Service (NASS),
the season average grower prices for the
years 2010 and 2011 were $2,040 and
$2,900 per ton, respectively. These
prices provide a range within which the
2013–14 season average prices could
fall. Dividing these average grower
prices by 2,000 pounds per ton provides
an inshell price per pound range of
$1.02 to $1.45. Dividing these inshell
prices per pound by the 0.45 conversion
factor (inshell to kernelweight)
established in the order, yields a 2013–
14 price range estimate of $2.27 to $3.22
per kernelweight pound of
merchantable walnuts.
Utilizing these estimates and the
assessment rate of $0.0189 per
kernelweight pound, estimated
assessment revenue as a percentage of
total estimated grower revenue should
likely range between 0.59 and 0.83
percent for the 2013–14 marketing year
(assessment rate divided by price per
kernelweight pound).
This action increases the assessment
obligation imposed on handlers. While
assessments impose some additional
costs on handlers, the costs are minimal
and uniform on all handlers. Some of
the additional costs may be passed on
to growers. However, these costs are
offset by the benefits derived from the
operation of the marketing order. In
addition, the Board’s meeting was
widely publicized throughout the
California walnut industry. All
interested persons were invited to
attend the meeting and participate in
Board deliberations on all issues. Like
all Board meetings, the June 6, 2013,
meeting was a public meeting. All
entities, both large and small, were able
to express their views on this issue.
VerDate Mar<15>2010
16:08 Dec 20, 2013
Jkt 232001
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 (Walnuts
Grown in California). 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 rule imposes no additional
reporting or recordkeeping requirements
on either small or large California
walnut 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. As noted in the initial
regulatory flexibility analysis, USDA
has not identified any Federal rules that
duplicate, overlap, or conflict with this
final rule.
AMS is committed to complying with
the E-Government Act, to promote the
use of the internet and other
information technologies to provide
more opportunities for citizens to access
Government information and services,
and for other purposes.
A proposed rule concerning this
action was published in the Federal
Register on September 17, 2013 (78 FR
57101). Copies of the proposed rule
were also made available to all walnut
handlers by Board staff. Finally, the
proposal was made available through
the internet by the USDA and the Office
of Federal Register. A 30-day comment
period ending October 17, 2013, was
provided for interested persons to
respond to the proposal. One comment
was received. The commenter raised a
question about the effect of this action
in regard to black walnut trees. Black
walnut trees aren’t regulated by the
marketing order; therefore, no changes
will be made to the rule as proposed.
A small business guide on complying
with fruit, vegetable, and specialty crop
marketing agreements and orders may
be viewed at: www.ams.usda.gov/
MarketingOrderSmallBusinessGuide.
Any questions about the compliance
guide should be sent to Jeffrey Smutney
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 Board and other
available information, it is hereby found
that this rule, and hereinafter set forth,
will tend to effectuate the declared
policy of the Act.
PO 00000
Frm 00003
Fmt 4700
Sfmt 4700
77329
Pursuant to 5 U.S.C. 553, it also found
and determined 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
2013–14 marketing year began on
September 1, 2013, and the marketing
order requires that the rate of
assessment for each marketing year
apply to all merchantable walnuts
handled during the year; (2) the Board
needs to have sufficient funds to pay its
expenses, which are incurred on a
continuous basis; and (3) handlers are
aware of this action, which was
unanimously recommended by the
Board at a public meeting and is similar
to other assessment rate actions issued
in past years. Also, a 30-day comment
period was provided for in the proposed
rule.
List of Subjects in 7 CFR Part 984
Marketing agreements, Nuts,
Reporting and recordkeeping
requirements, Walnuts.
For the reasons set forth in the
preamble, 7 CFR part 984 is amended as
follows:
PART 984—WALNUTS GROWN IN
CALIFORNIA
1. The authority citation for 7 CFR
part 984 continues to read as follows:
■
Authority: 7 U.S.C. 601–674.
2. Section 984.347 is revised to read
as follows:
■
§ 984.347
Assessment rate.
On and after September 1, 2013, an
assessment rate of $0.0189 per
kernelweight pound is established for
California merchantable walnuts.
Dated: December 17, 2013.
Rex A. Barnes,
Associate Administrator, Agricultural
Marketing Service.
[FR Doc. 2013–30414 Filed 12–20–13; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1217
[Document Number AMS–FV–13–0038]
Softwood Lumber Research,
Promotion, Consumer Education and
Industry Information Order; Changes
to the Membership of the Softwood
Lumber Board
Agricultural Marketing Service.
Final rule.
AGENCY:
ACTION:
E:\FR\FM\23DER1.SGM
23DER1
77330
Federal Register / Vol. 78, No. 246 / Monday, December 23, 2013 / Rules and Regulations
This rule changes the
membership of the Softwood Lumber
Board (Board) established under the
Softwood Lumber Research, Promotion,
Consumer Education and Industry
Information Order (Order). The Board
administers the Order with oversight by
the U.S. Department of Agriculture
(USDA). Under the Order, assessments
are collected from U.S. manufacturers
(domestic) and importers and used for
projects to promote softwood lumber
within the United States. This rule
revises the Board’s membership to
reflect the diversity of the industry in
terms of size of operation; allows
companies that operate in multiple
geographic regions to seek
representation in any region in which
they operate (U.S. or import); adds
flexibility for the Board to nominate
eligible persons to fill vacancies that
occur during a term; and re-designates
the States of Virginia and West Virginia
to the U.S. South Region. These changes
will help facilitate program operations.
SUMMARY:
DATES:
Effective Date: December 24,
2013.
FOR FURTHER INFORMATION CONTACT:
Maureen T. Pello, Marketing Specialist,
Promotion and Economics Division,
Fruit and Vegetable Program, AMS,
USDA, P.O. Box 831, Beavercreek,
Oregon 97004; telephone: (503) 632–
8848; facsimile (503) 632–8852; or
electronic mail: Maureen.Pello@
ams.usda.gov.
This rule
is issued under the Order. The Order is
authorized under the Commodity
Promotion, Research, and Information
Act of 1996 (1996 Act) (7 U.S.C. 7411–
7425).
SUPPLEMENTARY INFORMATION:
tkelley on DSK3SPTVN1PROD with RULES
Executive Orders 12866 and 13563
Executive Orders 12866 and 13563
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 emphasizes the
importance of quantifying both costs
and benefits, reducing costs,
harmonizing rules and promoting
flexibility. This action has been
designated as a ‘‘non-significant
regulatory action’’ under section 3(f) of
Executive Order 12866. Accordingly,
the Office of Management and Budget
(OMB) has waived the review process.
VerDate Mar<15>2010
16:08 Dec 20, 2013
Jkt 232001
Executive Order 13175
This action has been reviewed in
accordance with the requirements of
Executive Order 13175, Consultation
and Coordination with Indian Tribal
Governments. The review reveals that
this regulation will not have substantial
and direct effects on Tribal governments
and will not have significant Tribal
implications.
Executive Order 12988
This rule has been reviewed under
Executive Order 12988, Civil Justice
Reform. It is not intended to have
retroactive effect. Section 524 of the
1996 Act (7 U.S.C. 7423) provides that
it shall not affect or preempt any other
Federal or State law authorizing
promotion or research relating to an
agricultural commodity.
Under section 519 of the 1996 Act (7
U.S.C. 7418), a person subject to an
order may file a written petition with
USDA stating that an order, any
provision of an order, or any obligation
imposed in connection with an order, is
not established in accordance with the
law, and request a modification of an
order or an exemption from an order.
Any petition filed challenging an order,
any provision of an order, or any
obligation imposed in connection with
an order, shall be filed within two years
after the effective date of an order,
provision, or obligation subject to
challenge in the petition. The petitioner
will have the opportunity for a hearing
on the petition. Thereafter, USDA will
issue a ruling on the petition. The 1996
Act provides that the district court of
the United States for any district in
which the petitioner resides or conducts
business shall have the jurisdiction to
review a final ruling on the petition, if
the petitioner files a complaint for that
purpose not later than 20 days after the
date of the entry of USDA’s final ruling.
Background
This rule changes the Board’s
membership provisions under the
Order. The Board administers the Order
with oversight by USDA. Under the
Order, assessments are collected from
U.S. manufacturers and importers and
used for projects to promote softwood
lumber within the United States. This
rule revises the Board’s membership to
reflect the diversity of the industry in
terms of size of operation; allow
companies that operate in multiple
regions to seek representation in any
region in which they operate (U.S. or
import); add flexibility for the Board to
nominate eligible persons to fill
PO 00000
Frm 00004
Fmt 4700
Sfmt 4700
vacancies that occur during a term; and
re-designate the States of Virginia and
West Virginia to the U.S. South Region.
These changes will help facilitate
program operations and were
unanimously recommended by the
Board in July 2013.
Pursuant to section 1217.40(b), the
Board is composed of 18 or 19 members,
depending upon whether an additional
importer member is appointed to the
Board. Twelve members are domestic
manufacturers and six members are
importers of softwood lumber from
Canada. Of the 12 domestic
manufacturers, 6 represent the U.S.
South, 5 represent the U.S. West and 1
represents the Northeast and Lake
States. Of the six Canadian importers,
four represent Canada West and two
represent Canada East. An additional
importer member may be appointed to
represent all other importing countries
besides Canada. Section 1217.40(c)(2)
provides authority for the Board to
recommend changes to its membership
and nomination process.
The Board met on May 7 and 8, 2013,
and reviewed program operations,
including the Board’s structure and
nomination process. The Board
reviewed these issues further and made
the following four recommendations in
July 2013.
Board Diversity and Size of Operation
The Board recommended that its
regional membership be revised to
reflect the diversity of the industry in
terms of size of operation. About 8
percent of the companies covered under
the Order account for the top two-thirds
of the total annual volume of assessable
softwood lumber (both domestic and
imports). These companies are
considered large by the industry in
terms of size of operation. Some of these
companies operate in multiple regions
and some are both a domestic
manufacturer and an importer of
softwood lumber. Ninety-two percent of
the companies covered under the Order
account for the remaining one-third of
the total annual volume of assessable
softwood lumber. These are considered
small by the industry in terms of size of
operation.
The Board wants to ensure that this
diversity is reflected within each region.
The Board analyzed each region’s
volume of assessable softwood lumber
in relation to the region’s volume
attributed to small and large companies.
Table 1 below shows this analysis based
on 3-year average data (2010–2012).
E:\FR\FM\23DER1.SGM
23DER1
77331
Federal Register / Vol. 78, No. 246 / Monday, December 23, 2013 / Rules and Regulations
TABLE 1—REGIONAL ANALYSIS OF ASSESSABLE SOFTWOOD LUMBER BY SIZE OF OPERATION
Large companies
Regional volume
(billion board feet)
Assessable volume
(billion board feet)
Region
U.S. South ...................................................................................................
U.S. West .....................................................................................................
NE. and Lake States ...................................................................................
Canada West ...............................................................................................
Canada East ................................................................................................
Small
companies
Regional
volume
(billion board
feet)
10.436
10.548
0.749
4.983
2.379
5.951
8.017
0.229
3.919
1.315
(57%)
(76%)
(31%)
(79%)
(55%)
4.485
2.511
0.520
1.064
1.064
(43%)
(24%)
(69%)
(21%)
(45%)
* These figures are an average of data from 2010–2012. 2012 is actual Board assessment data from its first year of operation. 2010 and 2011
Canadian data is from U.S. Customs and Border Protection. 2010 and 2011 U.S. data is from Forest Economic Advisors.
It is noted that for the U.S. South,
while the majority of the volume of
assessable softwood lumber is attributed
to large companies, almost 90 percent of
the number of companies operating in
this region are small. The Board
considered this in its recommended
distribution of Board seats as shown in
Table 2 below.
TABLE 2—ALLOCATION OF BOARD SEATS BASED ON SIZE OF OPERATION
Number of seats
Size of operation
U.S. South
Large companies ....................
Small companies .....................
U.S. West
2
4
6
4
1
5
NE. and lake states
Canada
east
........................................
N/A .................................
1 .....................................
Canada
west
1
1
2
Non-Canadian importer
3
1
4
N/A
1
* The Northeast and Lake States member and non-Canadian importer member may represent companies of any size.
tkelley on DSK3SPTVN1PROD with RULES
Additionally, if there were no eligible
nominees for a large or small seat within
a region, that seat may be filled by a
nominee representing a company of any
size. Should a company’s size change
during a member’s term of office, that
member may serve for the remainder of
the term to which they were appointed.
Section 1217.40(b) is revised
accordingly. Modifications have been
made in this final rule to clarify that the
changes to paragraphs (a) and (b) in
section 1217.40 will become effective
for the term of office beginning January
1, 2015.
Further, section 1217.40(c) requires
the Board to periodically review the
geographic distribution of the volume of
softwood lumber manufactured and
shipped within the United States by
domestic manufacturers and the volume
of softwood lumber imported into the
United States. This section is revised to
require the Board to also periodically
review the distribution of seats based on
size of operation and recommend
changes as necessary. Section 1217.40(c)
is revised accordingly.
Entities That Operate in Multiple
Regions (U.S. and/or Import)
Currently, section 1217.41(b)(3)
provides that nominees that are both a
domestic manufacturer and importer
may seek nomination to the Board as
VerDate Mar<15>2010
16:08 Dec 20, 2013
Jkt 232001
either a domestic manufacturer or an
importer, but not both. Nominees who
domestically manufacture the majority
of their softwood lumber must seek
representation as a domestic
manufacturer and nominees who import
the majority of their softwood lumber
must seek representation as an importer.
Section 1217.41(b)(4) provides that
domestic manufacturers who
manufacture and domestically ship from
more than one U.S. region must seek
representation in the region of the
majority of their softwood lumber.
Further, section 1217.41(b)(5) provides
that importers who import from more
than one Canadian region must seek
representation in the region from which
they import the majority of their
softwood lumber.
As previously mentioned some
entities in the softwood lumber industry
are both domestic manufacturers and
importers and operate in multiple
regions under the Order. Industry
members would like the flexibility to
choose which region they represent and
whether they seek a position as a
domestic manufacturer or an importer
on the Board. Thus, the Board
recommended revising the Order so that
entities that are U.S. manufacturers and
importers and who may operate in
multiple regions have the ability to seek
representation in any region in which
PO 00000
Frm 00005
Fmt 4700
Sfmt 4700
they operate. This will add flexibility to
the nomination process by allowing
companies to seek representation in
their region of choice. Paragraphs (3), (4)
and (5) of section 1217.41(b) are revised
accordingly.
Vacancies That Occur Mid-Term
Section 1217.43(c) currently specifies
that if a position becomes vacant,
nominations to fill the vacancy be
conducted using the nomination process
set forth in the Order (section
1217.41(b)) whereby the Board solicits
the names of eligible nominees and then
conducts regional elections. The process
is lengthy and can result in a seat
remaining vacant for an extended period
of time. Thus, the Board recommended
revising the Order to allow the Board
the flexibility to nominate eligible
persons to fill vacancies that occur
during a term. This will facilitate
program operations by helping to ensure
that vacancies are filled in a timely
manner. Section 1217.43(c) is revised
accordingly.
Virginia and West Virginia
Currently, section 1217.40(b)(1)(iii)
specifies that the States of Virginia and
West Virginia are included as part of the
Northeast and Lake States Region under
the Order. However, softwood lumber
from Virginia and West Virginia is
E:\FR\FM\23DER1.SGM
23DER1
77332
Federal Register / Vol. 78, No. 246 / Monday, December 23, 2013 / Rules and Regulations
tkelley on DSK3SPTVN1PROD with RULES
predominately pine, a much different
species from the white spruce and red
pine in the Northeast and Lake States,
respectively. Thus, the Board
recommended that the Order be revised
to re-designate the States of Virginia and
West Virginia as part of the U.S. South.
The volume of softwood lumber from
Virginia and West Virginia is relatively
small (284 million board feet in 2012),
so this change will have no impact on
the regional distribution of seats on the
Board. This change will align Virginia
and West Virginia with the region in
which they have more in common.
Section 1217.40(b)(1)(iii) is revised
accordingly.
This rule also makes two minor
changes to the Order. In paragraph (b)
of section 1217.70 on reports, the last
sentence is modified to specify that
importers who pay their assessments
directly to the Board must submit their
report that accompanies the payment of
collected assessments within 30
calendar days after the end of the
quarter in which the softwood lumber
was imported as opposed to 30 calendar
days after importation. This language
was inadvertently omitted from the final
rule that implemented the Order (76 FR
46185; August 2, 2012) and will correct
the Order provisions to be in line with
current industry practices. This rule
also changes the OMB control number
in section 1217.108 from 0581–NEW to
0581–0264, the control number assigned
by the OMB.
Final Regulatory Flexibility Act
Analysis
In accordance with the Regulatory
Flexibility Act (RFA) (5 U.S.C. 601–
612), AMS is required to examine the
impact of the rule on small entities.
Accordingly, AMS has considered the
economic impact of this action on small
entities.
The purpose of the RFA is to fit
regulatory actions to the scale of
businesses subject to such actions so
that small businesses will not be
disproportionately burdened. The Small
Business Administration defines, in 13
CFR part 121, small agricultural
producers as those having annual
receipts of no more than $750,000 and
small agricultural service firms
(domestic manufacturers and importers)
as those having annual receipts of no
more than $7.0 million.
According to the Board, it is estimated
that there are currently about 446
domestic manufacturers of softwood
lumber in the United States. This
number represents separate business
entities; one business entity may
include multiple sawmills. Using an
average price of $322 per thousand
VerDate Mar<15>2010
16:08 Dec 20, 2013
Jkt 232001
board feet,1 a domestic manufacturer
who ships less than about 25 million
board feet per year would be considered
a small entity. Using 2012 data, it is
estimated that about 270 domestic
manufacturers, or about 60 percent 2,
ship less than 25 million board feet
annually.
Likewise, based on data from U.S.
Customs and Border Protection
(Customs) and the Board, it is estimated
there are currently about 767 importers
of softwood lumber. Using 2012
Customs data, about 699 importers, or
about 91 percent, import less than $7.0
million worth of softwood lumber
annually. Thus, for purposes of the
RFA, the majority of domestic
manufacturers and importers of
softwood lumber would be considered
small entities.
Regarding value of the commodity,
with domestic production averaging
about 28.5 billion board feet in 2012,
and using an average price of $322 per
thousand board feet, the average annual
domestic value for softwood lumber is
about $9.2 billion. According to
Customs data, the average annual value
for softwood lumber imports for 2012 is
about $3.5 billion.
This rule makes four changes to the
Order regarding the Board’s
membership. Paragraphs (1) and (2) of
section 1217.40(b) are revised to reflect
the diversity of the industry in terms of
size of operation; paragraph 1217.40(c)
is revised to require the Board to
periodically review this distribution.
Paragraphs (3), (4) and (5) of section
1217.41(b) are revised to allow
companies that operate in multiple
regions to seek representation in any
region in which they operate. Section
1217.43(c) is revised to add flexibility
for the Board to nominate eligible
persons to fill vacancies that occur
during a term. Section 1217.40(b)(1)(iii)
is revised to re-designate the States of
Virginia and West Virginia to the U.S.
South Region. These changes were
unanimously recommended by the
Board and are authorized under section
1217.40(c) of the Order and section
515(b)(3) of the 1996 Act.
Regarding the economic impact of this
rule on affected entities, these changes
are administrative in nature and have no
1 Price data was obtained from Random Lengths
Publications, Inc., and is a framing composite price
that is designed as a broad measure of price
movement in the lumber market
(www.randomlengths.com).
2 Percentages were obtained from the American
Lumber Standard Committee, Inc. (ALSC). The
ALSC administers an accreditation program for the
grade marking of lumber produced under the
American Softwood Lumber Standard (Voluntary
Product Standard 20). This information is also
confirmed by Board data.
PO 00000
Frm 00006
Fmt 4700
Sfmt 4700
economic impact on entities covered
under the program. These changes will
help maintain the Board’s balance in
terms of size of operation by geographic
region; add flexibility so that multiregion companies may choose which
region they represent on the Board; help
ensure that mid-term vacancies are
filled in a timely manner; and better
align the States of Virginia and West
Virginia.
Regarding alternatives, the Board
explored various options regarding the
diversity of size of operation. The Board
considered establishing a separate
region for multi-region companies and
companies that are both a domestic
manufacturer and an importer. The
Board also considered establishing some
‘‘at large’’ seats for multi-region
companies. The Board considered
weighting an entity’s vote in a regional
election by volume. The Board also
considered maintaining the status quo
and not changing the Order in this
regard. After much deliberation, the
Board opted to recommend allocating
regional seats based on an analysis of
the volume of softwood lumber within
each region and the volume of
assessable softwood lumber covered
under the Order.
The Board considered maintaining the
status quo regarding multi-region
companies who may also be a domestic
manufacturer and importer, filling midterm vacancies and the regional
designation for the States of Virginia
and West Virginia. The Board ultimately
recommended modifications to these
Order provisions.
In accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C.
Chapter 35), the information collection
and recordkeeping requirements that are
imposed by the Order have been
approved previously under OMB
control number 0581–0264. This rule
imposes no additional reporting and
recordkeeping burden on domestic
manufacturers and importers of
softwood lumber.
As with all Federal promotion
programs, reports and forms are
periodically reviewed to reduce
information requirements and
duplication by industry and public
sector agencies. Finally, USDA has not
identified any relevant Federal rules
that duplicate, overlap, or conflict with
this rule.
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.
E:\FR\FM\23DER1.SGM
23DER1
Federal Register / Vol. 78, No. 246 / Monday, December 23, 2013 / Rules and Regulations
tkelley on DSK3SPTVN1PROD with RULES
Regarding outreach efforts, these
actions were discussed by the Board at
meetings on May 7 and 8, 2013. The
Board’s Executive Committee discussed
these issues on January 7, June 3 and 10,
and July 1, 2013. All of the Board’s
meetings, including meetings held via
teleconference, are open to the public
and interested persons are invited to
participate and express their views.
A proposed rule concerning this
action was published in the Federal
Register on September 25, 2013 (78 FR
58956). The Board mailed copies of the
rule to all known domestic
manufacturers and importers of
softwood lumber. The Board included
notifications about the proposed rule in
its newsletters and on its Web site at
softwoodlumberboard.org. Finally, the
proposal was made available through
the Internet by USDA and the Office of
the Federal Register. A 30-day comment
period ending October 25, 2013, was
provided to allow interested persons to
submit comments.
Analysis of Comments
Six comments were received in
response to the proposed rule, all
supporting the proposal. In summary,
the commenters concurred that revising
the Board’s membership to reflect the
diversity of the industry by size of
operation will help ensure that the
Board reflects the make-up of the
industry and provide for fair
representation. Allowing entities that
operate in multiple regions to choose
the region they would like to represent
provides flexibility and may also
facilitate greater interest in serving on
the Board and Board activities. One
commenter opined that allowing the
Board the ability to nominate candidates
to fill vacancies that occur mid-term
would save costs since the Board would
not have to engage in a lengthy
nomination process. Three commenters
stated that switching the States of
Virginia and West Virginia to the U.S.
South Region was appropriate.
After consideration of all relevant
matters presented, including the
information and recommendation
submitted by the Board and other
available information, it is hereby found
that this rule, as hereinafter set forth, is
consistent with and will effectuate the
purposes of the 1996 Act.
It is further found that good cause
exists for not postponing the effective
date of this rule until 30 days after
publication in the Federal Register (5
U.S.C.) because this action needs to be
in effect as soon as possible to allow
sufficient time for completion of the
nomination process and appointments
for the term of office beginning January
VerDate Mar<15>2010
16:08 Dec 20, 2013
Jkt 232001
1, 2015. Additionally, a 30-day
comment period was provided for in the
proposed rule, and all six comments
supported the proposed changes.
List of Subjects in 7 CFR Part 1217
Administrative practice and
procedure, Advertising, Consumer
information, Marketing agreements,
Softwood lumber promotion, Reporting
and recordkeeping requirements.
For the reasons set forth in the
preamble, 7 CFR part 1217 is amended
as follows:
PART 1217—SOFTWOOD LUMBER
RESEARCH, PROMOTION,
CONSUMER EDUCATION AND
INDUSTRY INFORMATION ORDER
1. The authority citation for 7 CFR
part 1217 continues to read as follows:
■
Authority: 7 U.S.C. 7411–7425; 7 U.S.C.
7401.
2. Amend § 1217.40 by:
a. Revising paragraph (a);
b. Revising paragraphs (b)(1), (b)(2)
introductory text, (b)(2)(i), and (b)(2)(ii);
■ c. Revising the introductory text to
paragraph (c) and paragraph (c)(2) and
adding a new paragraph (c)(3)
The changes to read as follows:
■
■
■
§ 1217.40
Establishment and membership.
(a) Establishment of the Board. There
is hereby established a Softwood
Lumber Board to administer the terms
and provisions of this Order and
promote the use of softwood lumber.
The Board shall be composed of
manufacturers for the U.S. market who
manufacture and domestically ship or
import 15 million board feet or more of
softwood lumber in the United States
during a fiscal period. Seats on the
Board shall be apportioned based on the
volume of softwood lumber
manufactured and shipped within the
United States by domestic
manufacturers and the volume of
softwood lumber imported into the
United States. Commencing with the
term of office beginning January 1, 2015,
seats on the Board shall also be
apportioned based on size of operation
within each geographic region, as
specified in paragraphs (b)(1)(i),
(b)(1)(ii), (b)(2)(i), and (b)(2)(ii) of this
section. For purposes of this section,
large means manufacturers for the U.S.
market who account for the top twothirds of the total annual volume of
assessable softwood lumber and small
means those who account for the
remaining one-third of the total annual
volume of assessable softwood lumber.
If there are no eligible nominees for a
large or small seat within a region, that
PO 00000
Frm 00007
Fmt 4700
Sfmt 4700
77333
seat may be filled by a nominee
representing an eligible manufacturer
for the U.S. market of any size. Should
the size of a manufacturer for the U.S.
market change during a member’s term
of office, that member could serve for
the remainder of the term.
(b) * * *
(1) Domestic manufacturers. Twelve
members shall be domestic
manufacturers from the following three
regions:
(i) Six members shall be from the U.S.
South Region, which consists of the
states of Alabama, Arkansas, Florida,
Georgia, Louisiana, Mississippi, North
Carolina, Oklahoma, South Carolina,
Tennessee, Texas, Virginia and West
Virginia. Commencing with the term of
office beginning January 1, 2015, of
these six members, two must be large
and four must be small;
(ii) Five members shall be from the
U.S. West Region, which consists of the
states of Alaska, Arizona, California,
Colorado, Hawaii, Idaho, Montana,
Nevada, New Mexico, North Dakota,
Oregon, South Dakota, Utah,
Washington and Wyoming.
Commencing with the term of office
beginning January 1, 2015, of these five
members, four must be large and one
must be small; and
(iii) One member shall be from the
Northeast and Lake States Region,
which consists of the states of
Connecticut, Delaware, Illinois, Indiana,
Iowa, Kansas, Kentucky, Maine,
Maryland, Massachusetts, Michigan,
Minnesota, Missouri, Nebraska, New
Hampshire, New Jersey, New York,
Ohio, Pennsylvania, Rhode Island,
Vermont, Wisconsin and all other parts
of the United States not listed in
paragraphs (b)(1)(i), (b)(1)(ii), or
(b)(1)(iii) of this section.
(2) Importers. Six members shall be
importers who represent the following
regions:
(i) Four members shall import
softwood lumber from the Canadian
West Region, which consists of the
provinces of British Columbia and
Alberta. Commencing with the term of
office beginning January 1, 2015, of
these four members, three must be large
and one must be small; and
(ii) Two members shall import
softwood lumber from the Canadian
East Region, which consists of the
Canadian territories and all other
Canadian provinces not listed in
paragraph (b)(2)(i) of this section that
import softwood lumber into the United
States. Commencing with the term of
office beginning January 1, 2015, of
these two members, one must be large
and one must be small.
*
*
*
*
*
E:\FR\FM\23DER1.SGM
23DER1
77334
Federal Register / Vol. 78, No. 246 / Monday, December 23, 2013 / Rules and Regulations
(c) In each five-year period, but not
more frequently than once in each threeyear period, the Board shall:
*
*
*
*
*
(2) Review, based on a three-year
average, the distribution of the size of
operations within each region; and
(3) If warranted, recommend to the
Secretary the reapportionment of the
Board membership to reflect changes in
the geographical distribution of the
volume of softwood lumber
manufactured and shipped within the
United States by domestic
manufacturers and the volume of
softwood lumber imported into the
United States. The destination of
volumes between regions and the
distribution of the size of operations
within regions shall also be considered.
The number of Board members may also
be changed. Any changes in Board
composition shall be implemented by
the Secretary through rulemaking.
■ 3. Amend § 1217.41 by
■ a. Revising the introductory text to
paragraph (b);
■ b. Revising paragraphs (b)(1), (b)(2),
(b)(3), (b)(4), and (b)(5).
The changes to read as follows:
§ 1217.41
Nominations and appointments.
tkelley on DSK3SPTVN1PROD with RULES
*
*
*
*
*
(b) Subsequent nominations shall be
conducted as follows:
(1) The Board shall conduct outreach
to all segments of the softwood lumber
industry. Softwood lumber domestic
manufacturers and importers may
submit nominations to the Board.
Subsequent nominees must
domestically manufacture and/or import
15 million board feet or more of
softwood lumber per fiscal year;
(2) Domestic manufacturers and
importer nominees may provide the
Board a short background statement
outlining their qualifications to serve on
the Board;
(3) Nominees that are both a domestic
manufacturer and an importer may seek
nomination to the Board and vote in the
nomination process as either a domestic
manufacturer or an importer, but not
both. Such nominees must domestically
manufacture and import 15 million
board feet or more of softwood lumber
per fiscal year;
(4) The names of domestic
manufacturer nominees shall be placed
on a ballot by region. The ballots along
with the background statements shall be
mailed to domestic manufacturers in
each respective region for a vote.
Domestic manufacturers who
manufacture softwood lumber in more
than one region may seek nomination
and vote in one region of their choice.
VerDate Mar<15>2010
16:08 Dec 20, 2013
Jkt 232001
The votes shall be tabulated for each
region with the nominee receiving the
highest number of votes at the top of the
list in descending order by vote. The top
two candidates for each position shall
be submitted to the Secretary;
(5) The names of importer nominees
shall be placed on a ballot by region.
The ballots along with the background
statements shall be mailed to importers
in each respective region for a vote.
Importers who import softwood lumber
from more than one region may seek
nomination and vote in one region of
their choice. The votes shall be
tabulated for each region with the
nominee receiving the highest number
of votes at the top of the list in
descending order by vote. The top two
candidates for each position shall be
submitted to the Secretary.
*
*
*
*
*
■ 4. Amend § 1217.43 by revising
paragraph (c) to read as follows:
§ 1217.43
Removal and vacancies.
*
*
*
*
*
(c) If a position becomes vacant,
nominations to fill the vacancy may be
conducted using the nominations
process set forth in § 1217.41(b) or the
Board may nominate eligible persons. A
vacancy will not be required to be filled
if the unexpired term is less than 6
months.
■ 5. Amend § 1217.70 by revising
paragraph (b) to read as follows:
§ 1217.70
Reports.
*
*
*
*
*
(b) For domestic manufacturers, such
information shall accompany the
collected payment of assessments on a
quarterly basis specified in § 1217.52.
For importers who pay their
assessments directly to the Board, such
information shall accompany the
payment of collected assessments
within 30 calendar days after the end of
the quarter in which the softwood
lumber was imported.
■ 6. Section 1217.108 is revised to read
as follows:
§ 1217.108
OMB control number.
The control number assigned to the
information collection requirement in
this subpart by the Office of
Management and Budget pursuant to the
Paperwork Reduction Act of 1995, 4
U.S.C. is OMB control number 0581–
0264.
Dated: December 17, 2013.
Rex A. Barnes,
Associate Administrator.
[FR Doc. 2013–30394 Filed 12–20–13; 8:45 am]
BILLING CODE 3410–02–P
PO 00000
Frm 00008
Fmt 4700
Sfmt 4700
SMALL BUSINESS ADMINISTRATION
13 CFR Part 121
RIN 3245–AG37
Small Business Size Standards:
Construction
U.S. Small Business
Administration.
ACTION: Final rule.
AGENCY:
The United States Small
Business Administration (SBA) is
increasing two small business size
standards in North American Industry
Classification System (NAICS) Sector
23, Construction, and retaining the
current standards for the 30 remaining
industries in that Sector. Specifically,
SBA is increasing the size standards for
NAICS 237210, Land Subdivision, from
$7 million in average annual receipts to
$25.5 million, and for Dredging and
Surface Cleanup Activities, a subindustry category (or an ‘‘exception’’)
under NAICS 237990, Other Heavy and
Civil Engineering Construction, from
$20 million to $25.5 million. As part of
its ongoing comprehensive size
standards review, SBA evaluated all size
standards in NAICS Sector 23 to
determine whether they should be
retained or revised.
DATES: This rule is effective January 22,
2014.
FOR FURTHER INFORMATION CONTACT: Carl
Jordan, Program Analyst, Office of Size
Standards, (202) 205–6618 or
sizestandards@sba.gov.
SUPPLEMENTARY INFORMATION: To
determine eligibility for Federal small
business assistance programs, SBA
establishes small business size
definitions (referred to as size
standards) for private sector industries
in the United States. The SBA’s existing
size standards use two primary
measures of business size, average
annual receipts and number of
employees. Financial assets, electric
output and refining capacity are used as
size measures for a few specialized
industries. In addition, SBA’s Small
Business Investment Company (SBIC),
7(a), and Certified Development
Company (CDC or 504) Loan Programs
determine small business eligibility
using either the industry based size
standards or alternative net worth and
net income size based standards. At the
start of the current comprehensive
review of size standards, there were 41
different size standards levels, covering
1,141 NAICS industries and 18 subindustry activities. Of these, 31 were
based on average annual receipts, seven
based on number of employees, and
SUMMARY:
E:\FR\FM\23DER1.SGM
23DER1
]]>Agencies
[Federal Register Volume 78, Number 246 (Monday, December 23, 2013)]
[Rules and Regulations]
[Pages 77329-77334]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-30394]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1217
[Document Number AMS-FV-13-0038]
Softwood Lumber Research, Promotion, Consumer Education and
Industry Information Order; Changes to the Membership of the Softwood
Lumber Board
AGENCY: Agricultural Marketing Service.
ACTION: Final rule.
-----------------------------------------------------------------------
[[Page 77330]]
SUMMARY: This rule changes the membership of the Softwood Lumber Board
(Board) established under the Softwood Lumber Research, Promotion,
Consumer Education and Industry Information Order (Order). The Board
administers the Order with oversight by the U.S. Department of
Agriculture (USDA). Under the Order, assessments are collected from
U.S. manufacturers (domestic) and importers and used for projects to
promote softwood lumber within the United States. This rule revises the
Board's membership to reflect the diversity of the industry in terms of
size of operation; allows companies that operate in multiple geographic
regions to seek representation in any region in which they operate
(U.S. or import); adds flexibility for the Board to nominate eligible
persons to fill vacancies that occur during a term; and re-designates
the States of Virginia and West Virginia to the U.S. South Region.
These changes will help facilitate program operations.
DATES: Effective Date: December 24, 2013.
FOR FURTHER INFORMATION CONTACT: Maureen T. Pello, Marketing
Specialist, Promotion and Economics Division, Fruit and Vegetable
Program, AMS, USDA, P.O. Box 831, Beavercreek, Oregon 97004; telephone:
(503) 632-8848; facsimile (503) 632-8852; or electronic mail:
Maureen.Pello@ams.usda.gov.
SUPPLEMENTARY INFORMATION: This rule is issued under the Order. The
Order is authorized under the Commodity Promotion, Research, and
Information Act of 1996 (1996 Act) (7 U.S.C. 7411-7425).
Executive Orders 12866 and 13563
Executive Orders 12866 and 13563 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 emphasizes the importance of quantifying both costs and
benefits, reducing costs, harmonizing rules and promoting flexibility.
This action has been designated as a ``non-significant regulatory
action'' under section 3(f) of Executive Order 12866. Accordingly, the
Office of Management and Budget (OMB) has waived the review process.
Executive Order 13175
This action has been reviewed in accordance with the requirements
of Executive Order 13175, Consultation and Coordination with Indian
Tribal Governments. The review reveals that this regulation will not
have substantial and direct effects on Tribal governments and will not
have significant Tribal implications.
Executive Order 12988
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. It is not intended to have retroactive effect. Section
524 of the 1996 Act (7 U.S.C. 7423) provides that it shall not affect
or preempt any other Federal or State law authorizing promotion or
research relating to an agricultural commodity.
Under section 519 of the 1996 Act (7 U.S.C. 7418), a person subject
to an order may file a written petition with USDA stating that an
order, any provision of an order, or any obligation imposed in
connection with an order, is not established in accordance with the
law, and request a modification of an order or an exemption from an
order. Any petition filed challenging an order, any provision of an
order, or any obligation imposed in connection with an order, shall be
filed within two years after the effective date of an order, provision,
or obligation subject to challenge in the petition. The petitioner will
have the opportunity for a hearing on the petition. Thereafter, USDA
will issue a ruling on the petition. The 1996 Act provides that the
district court of the United States for any district in which the
petitioner resides or conducts business shall have the jurisdiction to
review a final ruling on the petition, if the petitioner files a
complaint for that purpose not later than 20 days after the date of the
entry of USDA's final ruling.
Background
This rule changes the Board's membership provisions under the
Order. The Board administers the Order with oversight by USDA. Under
the Order, assessments are collected from U.S. manufacturers and
importers and used for projects to promote softwood lumber within the
United States. This rule revises the Board's membership to reflect the
diversity of the industry in terms of size of operation; allow
companies that operate in multiple regions to seek representation in
any region in which they operate (U.S. or import); add flexibility for
the Board to nominate eligible persons to fill vacancies that occur
during a term; and re-designate the States of Virginia and West
Virginia to the U.S. South Region. These changes will help facilitate
program operations and were unanimously recommended by the Board in
July 2013.
Pursuant to section 1217.40(b), the Board is composed of 18 or 19
members, depending upon whether an additional importer member is
appointed to the Board. Twelve members are domestic manufacturers and
six members are importers of softwood lumber from Canada. Of the 12
domestic manufacturers, 6 represent the U.S. South, 5 represent the
U.S. West and 1 represents the Northeast and Lake States. Of the six
Canadian importers, four represent Canada West and two represent Canada
East. An additional importer member may be appointed to represent all
other importing countries besides Canada. Section 1217.40(c)(2)
provides authority for the Board to recommend changes to its membership
and nomination process.
The Board met on May 7 and 8, 2013, and reviewed program
operations, including the Board's structure and nomination process. The
Board reviewed these issues further and made the following four
recommendations in July 2013.
Board Diversity and Size of Operation
The Board recommended that its regional membership be revised to
reflect the diversity of the industry in terms of size of operation.
About 8 percent of the companies covered under the Order account for
the top two-thirds of the total annual volume of assessable softwood
lumber (both domestic and imports). These companies are considered
large by the industry in terms of size of operation. Some of these
companies operate in multiple regions and some are both a domestic
manufacturer and an importer of softwood lumber. Ninety-two percent of
the companies covered under the Order account for the remaining one-
third of the total annual volume of assessable softwood lumber. These
are considered small by the industry in terms of size of operation.
The Board wants to ensure that this diversity is reflected within
each region. The Board analyzed each region's volume of assessable
softwood lumber in relation to the region's volume attributed to small
and large companies. Table 1 below shows this analysis based on 3-year
average data (2010-2012).
[[Page 77331]]
Table 1--Regional Analysis of Assessable Softwood Lumber by Size of Operation
----------------------------------------------------------------------------------------------------------------
Large companies Small
------------------------- companies
---------------
Region Assessable volume Regional
(billion board feet) Regional volume volume
(billion board feet) (billion board
feet)
----------------------------------------------------------------------------------------------------------------
U.S. South.................................... 10.436 5.951 (57%) 4.485 (43%)
U.S. West..................................... 10.548 8.017 (76%) 2.511 (24%)
NE. and Lake States........................... 0.749 0.229 (31%) 0.520 (69%)
Canada West................................... 4.983 3.919 (79%) 1.064 (21%)
Canada East................................... 2.379 1.315 (55%) 1.064 (45%)
----------------------------------------------------------------------------------------------------------------
* These figures are an average of data from 2010-2012. 2012 is actual Board assessment data from its first year
of operation. 2010 and 2011 Canadian data is from U.S. Customs and Border Protection. 2010 and 2011 U.S. data
is from Forest Economic Advisors.
It is noted that for the U.S. South, while the majority of the
volume of assessable softwood lumber is attributed to large companies,
almost 90 percent of the number of companies operating in this region
are small. The Board considered this in its recommended distribution of
Board seats as shown in Table 2 below.
Table 2--Allocation of Board Seats Based on Size of Operation
--------------------------------------------------------------------------------------------------------------------------------------------------------
Number of seats
Size of operation --------------------------------------------------------------------------------------------------------------
U.S. South U.S. West NE. and lake states Canada east Canada west Non-Canadian importer
--------------------------------------------------------------------------------------------------------------------------------------------------------
Large companies.......................... 2 4 ............................ 1 3 ...........................
Small companies.......................... 4 1 N/A......................... 1 1 N/A
6 5 1........................... 2 4 1
--------------------------------------------------------------------------------------------------------------------------------------------------------
* The Northeast and Lake States member and non-Canadian importer member may represent companies of any size.
Additionally, if there were no eligible nominees for a large or
small seat within a region, that seat may be filled by a nominee
representing a company of any size. Should a company's size change
during a member's term of office, that member may serve for the
remainder of the term to which they were appointed. Section 1217.40(b)
is revised accordingly. Modifications have been made in this final rule
to clarify that the changes to paragraphs (a) and (b) in section
1217.40 will become effective for the term of office beginning January
1, 2015.
Further, section 1217.40(c) requires the Board to periodically
review the geographic distribution of the volume of softwood lumber
manufactured and shipped within the United States by domestic
manufacturers and the volume of softwood lumber imported into the
United States. This section is revised to require the Board to also
periodically review the distribution of seats based on size of
operation and recommend changes as necessary. Section 1217.40(c) is
revised accordingly.
Entities That Operate in Multiple Regions (U.S. and/or Import)
Currently, section 1217.41(b)(3) provides that nominees that are
both a domestic manufacturer and importer may seek nomination to the
Board as either a domestic manufacturer or an importer, but not both.
Nominees who domestically manufacture the majority of their softwood
lumber must seek representation as a domestic manufacturer and nominees
who import the majority of their softwood lumber must seek
representation as an importer. Section 1217.41(b)(4) provides that
domestic manufacturers who manufacture and domestically ship from more
than one U.S. region must seek representation in the region of the
majority of their softwood lumber. Further, section 1217.41(b)(5)
provides that importers who import from more than one Canadian region
must seek representation in the region from which they import the
majority of their softwood lumber.
As previously mentioned some entities in the softwood lumber
industry are both domestic manufacturers and importers and operate in
multiple regions under the Order. Industry members would like the
flexibility to choose which region they represent and whether they seek
a position as a domestic manufacturer or an importer on the Board.
Thus, the Board recommended revising the Order so that entities that
are U.S. manufacturers and importers and who may operate in multiple
regions have the ability to seek representation in any region in which
they operate. This will add flexibility to the nomination process by
allowing companies to seek representation in their region of choice.
Paragraphs (3), (4) and (5) of section 1217.41(b) are revised
accordingly.
Vacancies That Occur Mid-Term
Section 1217.43(c) currently specifies that if a position becomes
vacant, nominations to fill the vacancy be conducted using the
nomination process set forth in the Order (section 1217.41(b)) whereby
the Board solicits the names of eligible nominees and then conducts
regional elections. The process is lengthy and can result in a seat
remaining vacant for an extended period of time. Thus, the Board
recommended revising the Order to allow the Board the flexibility to
nominate eligible persons to fill vacancies that occur during a term.
This will facilitate program operations by helping to ensure that
vacancies are filled in a timely manner. Section 1217.43(c) is revised
accordingly.
Virginia and West Virginia
Currently, section 1217.40(b)(1)(iii) specifies that the States of
Virginia and West Virginia are included as part of the Northeast and
Lake States Region under the Order. However, softwood lumber from
Virginia and West Virginia is
[[Page 77332]]
predominately pine, a much different species from the white spruce and
red pine in the Northeast and Lake States, respectively. Thus, the
Board recommended that the Order be revised to re-designate the States
of Virginia and West Virginia as part of the U.S. South. The volume of
softwood lumber from Virginia and West Virginia is relatively small
(284 million board feet in 2012), so this change will have no impact on
the regional distribution of seats on the Board. This change will align
Virginia and West Virginia with the region in which they have more in
common. Section 1217.40(b)(1)(iii) is revised accordingly.
This rule also makes two minor changes to the Order. In paragraph
(b) of section 1217.70 on reports, the last sentence is modified to
specify that importers who pay their assessments directly to the Board
must submit their report that accompanies the payment of collected
assessments within 30 calendar days after the end of the quarter in
which the softwood lumber was imported as opposed to 30 calendar days
after importation. This language was inadvertently omitted from the
final rule that implemented the Order (76 FR 46185; August 2, 2012) and
will correct the Order provisions to be in line with current industry
practices. This rule also changes the OMB control number in section
1217.108 from 0581-NEW to 0581-0264, the control number assigned by the
OMB.
Final Regulatory Flexibility Act Analysis
In accordance with the Regulatory Flexibility Act (RFA) (5 U.S.C.
601-612), AMS is required to examine the impact of the rule on small
entities. Accordingly, AMS has considered the economic impact of this
action on small entities.
The purpose of the RFA is to fit regulatory actions to the scale of
businesses subject to such actions so that small businesses will not be
disproportionately burdened. The Small Business Administration defines,
in 13 CFR part 121, small agricultural producers as those having annual
receipts of no more than $750,000 and small agricultural service firms
(domestic manufacturers and importers) as those having annual receipts
of no more than $7.0 million.
According to the Board, it is estimated that there are currently
about 446 domestic manufacturers of softwood lumber in the United
States. This number represents separate business entities; one business
entity may include multiple sawmills. Using an average price of $322
per thousand board feet,\1\ a domestic manufacturer who ships less than
about 25 million board feet per year would be considered a small
entity. Using 2012 data, it is estimated that about 270 domestic
manufacturers, or about 60 percent \2\, ship less than 25 million board
feet annually.
---------------------------------------------------------------------------
\1\ Price data was obtained from Random Lengths Publications,
Inc., and is a framing composite price that is designed as a broad
measure of price movement in the lumber market
(www.randomlengths.com).
\2\ Percentages were obtained from the American Lumber Standard
Committee, Inc. (ALSC). The ALSC administers an accreditation
program for the grade marking of lumber produced under the American
Softwood Lumber Standard (Voluntary Product Standard 20). This
information is also confirmed by Board data.
---------------------------------------------------------------------------
Likewise, based on data from U.S. Customs and Border Protection
(Customs) and the Board, it is estimated there are currently about 767
importers of softwood lumber. Using 2012 Customs data, about 699
importers, or about 91 percent, import less than $7.0 million worth of
softwood lumber annually. Thus, for purposes of the RFA, the majority
of domestic manufacturers and importers of softwood lumber would be
considered small entities.
Regarding value of the commodity, with domestic production
averaging about 28.5 billion board feet in 2012, and using an average
price of $322 per thousand board feet, the average annual domestic
value for softwood lumber is about $9.2 billion. According to Customs
data, the average annual value for softwood lumber imports for 2012 is
about $3.5 billion.
This rule makes four changes to the Order regarding the Board's
membership. Paragraphs (1) and (2) of section 1217.40(b) are revised to
reflect the diversity of the industry in terms of size of operation;
paragraph 1217.40(c) is revised to require the Board to periodically
review this distribution. Paragraphs (3), (4) and (5) of section
1217.41(b) are revised to allow companies that operate in multiple
regions to seek representation in any region in which they operate.
Section 1217.43(c) is revised to add flexibility for the Board to
nominate eligible persons to fill vacancies that occur during a term.
Section 1217.40(b)(1)(iii) is revised to re-designate the States of
Virginia and West Virginia to the U.S. South Region. These changes were
unanimously recommended by the Board and are authorized under section
1217.40(c) of the Order and section 515(b)(3) of the 1996 Act.
Regarding the economic impact of this rule on affected entities,
these changes are administrative in nature and have no economic impact
on entities covered under the program. These changes will help maintain
the Board's balance in terms of size of operation by geographic region;
add flexibility so that multi-region companies may choose which region
they represent on the Board; help ensure that mid-term vacancies are
filled in a timely manner; and better align the States of Virginia and
West Virginia.
Regarding alternatives, the Board explored various options
regarding the diversity of size of operation. The Board considered
establishing a separate region for multi-region companies and companies
that are both a domestic manufacturer and an importer. The Board also
considered establishing some ``at large'' seats for multi-region
companies. The Board considered weighting an entity's vote in a
regional election by volume. The Board also considered maintaining the
status quo and not changing the Order in this regard. After much
deliberation, the Board opted to recommend allocating regional seats
based on an analysis of the volume of softwood lumber within each
region and the volume of assessable softwood lumber covered under the
Order.
The Board considered maintaining the status quo regarding multi-
region companies who may also be a domestic manufacturer and importer,
filling mid-term vacancies and the regional designation for the States
of Virginia and West Virginia. The Board ultimately recommended
modifications to these Order provisions.
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
Chapter 35), the information collection and recordkeeping requirements
that are imposed by the Order have been approved previously under OMB
control number 0581-0264. This rule imposes no additional reporting and
recordkeeping burden on domestic manufacturers and importers of
softwood lumber.
As with all Federal promotion programs, reports and forms are
periodically reviewed to reduce information requirements and
duplication by industry and public sector agencies. Finally, USDA has
not identified any relevant Federal rules that duplicate, overlap, or
conflict with this rule.
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.
[[Page 77333]]
Regarding outreach efforts, these actions were discussed by the
Board at meetings on May 7 and 8, 2013. The Board's Executive Committee
discussed these issues on January 7, June 3 and 10, and July 1, 2013.
All of the Board's meetings, including meetings held via
teleconference, are open to the public and interested persons are
invited to participate and express their views.
A proposed rule concerning this action was published in the Federal
Register on September 25, 2013 (78 FR 58956). The Board mailed copies
of the rule to all known domestic manufacturers and importers of
softwood lumber. The Board included notifications about the proposed
rule in its newsletters and on its Web site at softwoodlumberboard.org.
Finally, the proposal was made available through the Internet by USDA
and the Office of the Federal Register. A 30-day comment period ending
October 25, 2013, was provided to allow interested persons to submit
comments.
Analysis of Comments
Six comments were received in response to the proposed rule, all
supporting the proposal. In summary, the commenters concurred that
revising the Board's membership to reflect the diversity of the
industry by size of operation will help ensure that the Board reflects
the make-up of the industry and provide for fair representation.
Allowing entities that operate in multiple regions to choose the region
they would like to represent provides flexibility and may also
facilitate greater interest in serving on the Board and Board
activities. One commenter opined that allowing the Board the ability to
nominate candidates to fill vacancies that occur mid-term would save
costs since the Board would not have to engage in a lengthy nomination
process. Three commenters stated that switching the States of Virginia
and West Virginia to the U.S. South Region was appropriate.
After consideration of all relevant matters presented, including
the information and recommendation submitted by the Board and other
available information, it is hereby found that this rule, as
hereinafter set forth, is consistent with and will effectuate the
purposes of the 1996 Act.
It is further found that good cause exists for not postponing the
effective date of this rule until 30 days after publication in the
Federal Register (5 U.S.C.) because this action needs to be in effect
as soon as possible to allow sufficient time for completion of the
nomination process and appointments for the term of office beginning
January 1, 2015. Additionally, a 30-day comment period was provided for
in the proposed rule, and all six comments supported the proposed
changes.
List of Subjects in 7 CFR Part 1217
Administrative practice and procedure, Advertising, Consumer
information, Marketing agreements, Softwood lumber promotion, Reporting
and recordkeeping requirements.
For the reasons set forth in the preamble, 7 CFR part 1217 is
amended as follows:
PART 1217--SOFTWOOD LUMBER RESEARCH, PROMOTION, CONSUMER EDUCATION
AND INDUSTRY INFORMATION ORDER
0
1. The authority citation for 7 CFR part 1217 continues to read as
follows:
Authority: 7 U.S.C. 7411-7425; 7 U.S.C. 7401.
0
2. Amend Sec. 1217.40 by:
0
a. Revising paragraph (a);
0
b. Revising paragraphs (b)(1), (b)(2) introductory text, (b)(2)(i), and
(b)(2)(ii);
0
c. Revising the introductory text to paragraph (c) and paragraph (c)(2)
and adding a new paragraph (c)(3)
The changes to read as follows:
Sec. 1217.40 Establishment and membership.
(a) Establishment of the Board. There is hereby established a
Softwood Lumber Board to administer the terms and provisions of this
Order and promote the use of softwood lumber. The Board shall be
composed of manufacturers for the U.S. market who manufacture and
domestically ship or import 15 million board feet or more of softwood
lumber in the United States during a fiscal period. Seats on the Board
shall be apportioned based on the volume of softwood lumber
manufactured and shipped within the United States by domestic
manufacturers and the volume of softwood lumber imported into the
United States. Commencing with the term of office beginning January 1,
2015, seats on the Board shall also be apportioned based on size of
operation within each geographic region, as specified in paragraphs
(b)(1)(i), (b)(1)(ii), (b)(2)(i), and (b)(2)(ii) of this section. For
purposes of this section, large means manufacturers for the U.S. market
who account for the top two-thirds of the total annual volume of
assessable softwood lumber and small means those who account for the
remaining one-third of the total annual volume of assessable softwood
lumber. If there are no eligible nominees for a large or small seat
within a region, that seat may be filled by a nominee representing an
eligible manufacturer for the U.S. market of any size. Should the size
of a manufacturer for the U.S. market change during a member's term of
office, that member could serve for the remainder of the term.
(b) * * *
(1) Domestic manufacturers. Twelve members shall be domestic
manufacturers from the following three regions:
(i) Six members shall be from the U.S. South Region, which consists
of the states of Alabama, Arkansas, Florida, Georgia, Louisiana,
Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee,
Texas, Virginia and West Virginia. Commencing with the term of office
beginning January 1, 2015, of these six members, two must be large and
four must be small;
(ii) Five members shall be from the U.S. West Region, which
consists of the states of Alaska, Arizona, California, Colorado,
Hawaii, Idaho, Montana, Nevada, New Mexico, North Dakota, Oregon, South
Dakota, Utah, Washington and Wyoming. Commencing with the term of
office beginning January 1, 2015, of these five members, four must be
large and one must be small; and
(iii) One member shall be from the Northeast and Lake States
Region, which consists of the states of Connecticut, Delaware,
Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland,
Massachusetts, Michigan, Minnesota, Missouri, Nebraska, New Hampshire,
New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont,
Wisconsin and all other parts of the United States not listed in
paragraphs (b)(1)(i), (b)(1)(ii), or (b)(1)(iii) of this section.
(2) Importers. Six members shall be importers who represent the
following regions:
(i) Four members shall import softwood lumber from the Canadian
West Region, which consists of the provinces of British Columbia and
Alberta. Commencing with the term of office beginning January 1, 2015,
of these four members, three must be large and one must be small; and
(ii) Two members shall import softwood lumber from the Canadian
East Region, which consists of the Canadian territories and all other
Canadian provinces not listed in paragraph (b)(2)(i) of this section
that import softwood lumber into the United States. Commencing with the
term of office beginning January 1, 2015, of these two members, one
must be large and one must be small.
* * * * *
[[Page 77334]]
(c) In each five-year period, but not more frequently than once in
each three-year period, the Board shall:
* * * * *
(2) Review, based on a three-year average, the distribution of the
size of operations within each region; and
(3) If warranted, recommend to the Secretary the reapportionment of
the Board membership to reflect changes in the geographical
distribution of the volume of softwood lumber manufactured and shipped
within the United States by domestic manufacturers and the volume of
softwood lumber imported into the United States. The destination of
volumes between regions and the distribution of the size of operations
within regions shall also be considered. The number of Board members
may also be changed. Any changes in Board composition shall be
implemented by the Secretary through rulemaking.
0
3. Amend Sec. 1217.41 by
0
a. Revising the introductory text to paragraph (b);
0
b. Revising paragraphs (b)(1), (b)(2), (b)(3), (b)(4), and (b)(5).
The changes to read as follows:
Sec. 1217.41 Nominations and appointments.
* * * * *
(b) Subsequent nominations shall be conducted as follows:
(1) The Board shall conduct outreach to all segments of the
softwood lumber industry. Softwood lumber domestic manufacturers and
importers may submit nominations to the Board. Subsequent nominees must
domestically manufacture and/or import 15 million board feet or more of
softwood lumber per fiscal year;
(2) Domestic manufacturers and importer nominees may provide the
Board a short background statement outlining their qualifications to
serve on the Board;
(3) Nominees that are both a domestic manufacturer and an importer
may seek nomination to the Board and vote in the nomination process as
either a domestic manufacturer or an importer, but not both. Such
nominees must domestically manufacture and import 15 million board feet
or more of softwood lumber per fiscal year;
(4) The names of domestic manufacturer nominees shall be placed on
a ballot by region. The ballots along with the background statements
shall be mailed to domestic manufacturers in each respective region for
a vote. Domestic manufacturers who manufacture softwood lumber in more
than one region may seek nomination and vote in one region of their
choice. The votes shall be tabulated for each region with the nominee
receiving the highest number of votes at the top of the list in
descending order by vote. The top two candidates for each position
shall be submitted to the Secretary;
(5) The names of importer nominees shall be placed on a ballot by
region. The ballots along with the background statements shall be
mailed to importers in each respective region for a vote. Importers who
import softwood lumber from more than one region may seek nomination
and vote in one region of their choice. The votes shall be tabulated
for each region with the nominee receiving the highest number of votes
at the top of the list in descending order by vote. The top two
candidates for each position shall be submitted to the Secretary.
* * * * *
0
4. Amend Sec. 1217.43 by revising paragraph (c) to read as follows:
Sec. 1217.43 Removal and vacancies.
* * * * *
(c) If a position becomes vacant, nominations to fill the vacancy
may be conducted using the nominations process set forth in Sec.
1217.41(b) or the Board may nominate eligible persons. A vacancy will
not be required to be filled if the unexpired term is less than 6
months.
0
5. Amend Sec. 1217.70 by revising paragraph (b) to read as follows:
Sec. 1217.70 Reports.
* * * * *
(b) For domestic manufacturers, such information shall accompany
the collected payment of assessments on a quarterly basis specified in
Sec. 1217.52. For importers who pay their assessments directly to the
Board, such information shall accompany the payment of collected
assessments within 30 calendar days after the end of the quarter in
which the softwood lumber was imported.
0
6. Section 1217.108 is revised to read as follows:
Sec. 1217.108 OMB control number.
The control number assigned to the information collection
requirement in this subpart by the Office of Management and Budget
pursuant to the Paperwork Reduction Act of 1995, 4 U.S.C. is OMB
control number 0581-0264.
Dated: December 17, 2013.
Rex A. Barnes,
Associate Administrator.
[FR Doc. 2013-30394 Filed 12-20-13; 8:45 am]
BILLING CODE 3410-02-P
