Spearmint Oil Produced in the Far West; Decreased Assessment Rate, 22359-22362 [2014-09091]
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Federal Register / Vol. 79, No. 77 / Tuesday, April 22, 2014 / Rules and Regulations
2015 crop could range between $6.55
and $8.10 per hundredweight of
potatoes. Therefore, the estimated
assessment revenue for the 2014–2015
fiscal period as a percentage of total
producer revenue could range between
0.03 and 0.04 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. As such, the
decreased assessment rate will reduce
the burden on handlers and may reduce
the burden on producers. In addition,
the Committee’s meeting was widely
publicized throughout the Idaho-Eastern
Oregon potato industry and all
interested persons were invited to
attend the meeting and participate in
Committee deliberations on all issues.
Like all Committee meetings, the
November 21, 2013, meeting was a
public meeting and all entities, both
large and small, were able to express
views on this issue.
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 (Generic
Vegetable and Specialty Crops). 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 Idaho-Eastern
Oregon potato 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
relevant 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
increased opportunities for citizen
access to Government information and
services, and for other purposes.
A proposed rule concerning this
action was published in the Federal
Register on February 25, 2014 (79 FR
10423). Copies of the proposed rule
were distributed to all Idaho-Eastern
Oregon potato handlers, Committee
members, and media. Finally, the
proposal was made available through
the internet by USDA and the Office of
the Federal Register. A 30-day comment
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period ending March 27, 2014, was
provided for interested persons to
respond to the proposal. No comments
were received.
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 Jeffrey Smutny
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.
List of Subjects in 7 CFR Part 945
Marketing agreements, Potatoes,
Reporting and recordkeeping
requirements.
For the reasons set forth in the
preamble, 7 CFR part 945 is amended as
follows:
PART 945—IRISH POTATOES GROWN
IN CERTAIN DESIGNATED COUNTIES
IN IDAHO, AND MALHEUR COUNTY,
OREGON
1. The authority citation for 7 CFR
part 945 continues to read as follows:
■
Authority: 7 U.S.C. 601–674.
2. Section 945.249 is revised to read
as follows:
■
§ 945.249
Assessment rate.
On and after August 1, 2014, an
assessment rate of $0.0025 per
hundredweight is established for IdahoEastern Oregon potatoes.
Dated: April 16, 2014.
Rex A. Barnes,
Associate Administrator, Agricultural
Marketing Service.
[FR Doc. 2014–09093 Filed 4–21–14; 8:45 am]
BILLING CODE P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 985
[Doc. No. AMS–FV–14–0027; FV14–985–3
IR]
Spearmint Oil Produced in the Far
West; Decreased Assessment Rate
AGENCY:
Agricultural Marketing Service,
USDA.
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Interim rule with request for
comments.
ACTION:
This rule decreases the
assessment rate established for the
Spearmint Oil Administrative
Committee (Committee), for the 2014–15
and subsequent marketing years from
$0.10 to $0.09 per pound of spearmint
oil handled. The Committee locally
administers the marketing order which
regulates the handling of spearmint oil
produced in the Far West. Assessments
upon spearmint oil handlers are used by
the Committee to fund reasonable and
necessary expenses of the program. The
marketing year begins June 1 and ends
May 31. The assessment rate will
remain in effect indefinitely unless
modified, suspended, or terminated.
Effective April 23, 2014. Comments
received by June 23, 2014, will be
considered prior to issuance of a final
rule.
SUMMARY:
Interested persons are
invited to submit written comments
concerning this rule. Comments must be
sent to the Docket Clerk, Marketing
Order and Agreement Division, Fruit
and Vegetable Program, 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 document 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:
Manuel Michel, Marketing Specialist, or
Gary D. Olson, Regional Director,
Northwest Marketing Field Office,
Marketing Order and Agreement
Division, Fruit and Vegetable Program,
AMS, USDA; Telephone: (503) 326–
2724, Fax: (503) 326–7440, or Email:
Manuel.Michel@ams.usda.gov or
GaryD.Olson@ams.usda.gov.
Small businesses may request
information on complying with this
regulation by contacting Jeffrey Smutny,
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:
Jeffrey.Smutny@ams.usda.gov.
ADDRESSES:
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Federal Register / Vol. 79, No. 77 / Tuesday, April 22, 2014 / Rules and Regulations
This rule
is issued under Marketing Order No.
985 (7 CFR part 985), as amended,
regulating the handling of spearmint oil
grown in the Far West (Washington,
Idaho, Oregon, and designated parts of
Nevada and Utah), 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 Orders
12866, 13563, and 13175.
This rule has been reviewed under
Executive Order 12988, Civil Justice
Reform. Under the order now in effect,
Far West spearmint oil 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 spearmint
oil beginning June 1, 2014, 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 2014–15 and subsequent marketing
years from $0.10 to $0.09 per pound of
spearmint oil handled.
The Far West spearmint oil 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 of Far West spearmint oil.
They are familiar with the Committee’s
needs and with the costs for goods and
services in their local area and thus are
in a position to formulate an appropriate
budget and assessment rate. The
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SUPPLEMENTARY INFORMATION:
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assessment rate is formulated and
discussed in a public meeting. All
persons directly affected have an
opportunity to participate and provide
input.
For the 2003–04 and subsequent
marketing years, the Committee
recommended and USDA approved, an
assessment rate that would continue in
effect from marketing year to marketing
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 February 19,
2014, and unanimously recommended
2014–15 expenditures of $266,400 and
an assessment rate of $0.09 per pound
of spearmint oil handled. In
comparison, last year’s budgeted
expenditures were $220,970. The
assessment rate of $0.09 is $0.01 lower
than the rate currently in effect. The
assessment rate decrease is necessary to
reduce the funds held in the operating
reserve in order to not exceed
approximately one marketing year’s
operational expenses (§ 985.42(a)).
The major expenditures
recommended by the Committee for the
2014–15 marketing year include $25,500
for Committee expenses; $195,900 for
administrative expenses; and $45,000
for market research and promotion
expenses. Budgeted expenses for these
items in 2013–14 were $21,500 for
Committee expenses; $190,470 for
administrative expenses; and $9,000 for
market research and promotion
expenses.
The assessment rate recommended by
the Committee was derived by dividing
anticipated expenses by the expected
quantity of Far West spearmint oil
handled. The Committee estimates that
2,500,000 pounds of spearmint oil will
be handled, which should provide
$225,000 in assessment income. Income
derived from handler assessments, along
with interest income and funds from the
Committee’s authorized operating
reserve will be adequate to cover
budgeted expenses. Funds in the
operating reserve (currently $321,689)
will be reduced to comply with the
maximum permitted by the order of
approximately one marketing year’s
operational expenses.
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
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to or during each marketing 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 2014–15 budget and those
for subsequent marketing 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
businesses 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 eight spearmint oil handlers
subject to regulation under the order,
and approximately 39 producers of
Scotch spearmint oil and approximately
91 producers of Native spearmint oil in
the regulated production area. Small
agricultural service firms are defined by
the Small Business Administration
(SBA) as those having annual receipts of
less than $7,000,000, and small
agricultural producers are defined as
those having annual receipts of less than
$750,000 (13 CFR 121.201).
Based on the SBA’s definition of
small entities, the Committee estimates
that two of the eight handlers regulated
by the order could be considered small
entities. Most of the handlers are large
corporations involved in the
international trading of essential oils
and the products of essential oils. In
addition, the Committee estimates that
22 of the 39 Scotch spearmint oil
producers, and 29 of the 91 Native
spearmint oil producers could be
classified as small entities under the
SBA definition. Thus, a majority of
handlers and producers of Far West
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Federal Register / Vol. 79, No. 77 / Tuesday, April 22, 2014 / Rules and Regulations
spearmint oil may not be classified as
small entities.
The Far West spearmint oil industry
is characterized by producers whose
farming operations generally involve
more than one commodity, and whose
income from farming operations is not
exclusively dependent on the
production of spearmint oil. A typical
spearmint oil-producing operation has
enough acreage for rotation such that
the total acreage required to produce the
crop is about one-third spearmint and
two-thirds rotational crops. Thus, the
typical spearmint oil producer has to
have considerably more acreage than is
planted to spearmint during any given
season. Crop rotation is an essential
cultural practice in the production of
spearmint oil for purposes of weed,
insect, and disease control. To remain
economically viable with the added
costs associated with spearmint oil
production, a majority of spearmint oilproducing farms fall into the SBA
category of large businesses.
This rule decreases the assessment
rate established for the Committee and
collected from handlers for the 2014–15
and subsequent marketing years from
$0.10 to $0.09 per pound of spearmint
oil handled. The Committee
unanimously recommended 2014–15
expenditures of $266,400 and an
assessment rate of $0.09. The
assessment rate of $0.09 is $0.01 lower
than the 2013–14 rate. The quantity of
assessable spearmint oil for the 2014–15
marketing year is estimated at 2,500,000
pounds. Thus, the $0.09 rate should
provide $225,000 in assessment income.
Income derived from handler
assessments, along with interest income
and funds from the Committee’s
authorized operating reserve will be
adequate to cover budgeted expenses.
The major expenditures
recommended by the Committee for the
2014–15 marketing year include $25,500
for Committee expenses, $195,900 for
administrative expenses, and $45,000
for market research and promotion
expenses. Budgeted expenses for these
items in 2013–14 were $21,500,
$190,470, and $9,000, respectively.
The lower assessment rate is
necessary to reduce the operating
reserve balance and not exceed
approximately one marketing year’s
expenses as provided for in § 985.42.
The operating reserve balance is
expected to be $321,689 on May 31,
2014. This amount exceeds the
maximum authorized reserve amount of
$266,400 by $55,289. Assessment
income for 2014–15 is estimated at
$225,000, while expenses are estimated
at $266,400. The Committee anticipates
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using $41,400 of their operating reserve
fund for the 2014–15 marketing year.
The Committee discussed alternatives
to this action. Leaving the assessment
rate at the current $0.10 per pound was
initially considered, but not
recommended, because the Committee
would like to decrease the level of the
operating reserve so that it is not more
than approximately one marketing
year’s expenses. Lower assessment rates
were considered, but also not
recommended, because they would not
generate the amount of income
necessary to administer the program.
The Committee ultimately determined
that an assessment rate of $0.09 per
pound, which should generate
assessment income of $225,000,
combined with operating reserve funds,
would be sufficient to meet its 2014–15
expenses.
A review of historical data and
preliminary information pertaining to
the upcoming marketing year indicates
that the producer price for the 2014–15
season could range between $17.00 and
$19.00 per pound of spearmint oil.
Therefore, the estimated assessment
revenue for the 2014–15 marketing year
as a percentage of total grower revenue
could range between 0.47 and 0.53
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 Far West
spearmint oil industry and all interested
persons were invited to attend the
meeting and participate in Committee
deliberations on all issues. Like all
Committee meetings, the February 19,
2014, 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 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,
Vegetable and Specialty Crops. 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.
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22361
This action imposes no additional
reporting or recordkeeping requirements
on either small or large Far West
spearmint oil 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 Jeffrey Smutny
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 2014–15 marketing
year begins on June 1, 2014, and the
marketing order requires that the rate of
assessment for each marketing year
apply to all assessable spearmint oil
handled during such marketing year; (2)
this action decreases the assessment rate
for assessable spearmint oil beginning
with the 2014–15 marketing year; (3)
handlers are aware of this action which
was unanimously recommended by the
Committee at a public meeting; and (4)
this interim 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 985
Marketing agreements, Oils and fats,
Reporting and recordkeeping
requirements, Spearmint oil.
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Federal Register / Vol. 79, No. 77 / Tuesday, April 22, 2014 / Rules and Regulations
For the reasons set forth in the
preamble, 7 CFR part 985 is amended as
follows:
PART 985—MARKETING ORDER
REGULATING THE HANDLING OF
SPEARMINT OIL PRODUCED IN THE
FAR WEST
1. The authority citation for 7 CFR
part 985 continues to read as follows:
■
Authority: 7 U.S.C. 601–674.
2. Section 985.141 is revised to read
as follows:
■
§ 985.141
Assessment rate.
On and after June 1, 2014, an
assessment rate of $0.09 per pound is
established for Far West spearmint oil.
Unexpended funds may be carried over
as a reserve.
Dated: April 16, 2014.
Rex A. Barnes,
Associate Administrator, Agricultural
Marketing Service.
[FR Doc. 2014–09091 Filed 4–21–14; 8:45 am]
BILLING CODE P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 39
[Docket No. FAA–2014–0041; Directorate
Identifier 2013–CE–053–AD; Amendment
39–17824; AD 2014–07–10]
RIN 2120–AA64
Airworthiness Directives; Ballonbau
¨
Worner GmbH Balloons
Federal Aviation
Administration (FAA), Department of
Transportation (DOT).
ACTION: Final rule.
AGENCY:
We are adopting a new
airworthiness directive (AD) for
¨
Ballonbau Worner GmbH Models NL–
280/STU, NL–380/STU, NL–510/STU,
NL–640/STU, NL–840/STU, and NL–
1000/STU balloons. This AD results
from mandatory continuing
airworthiness information (MCAI)
issued by an aviation authority of
another country to identify and correct
an unsafe condition on an aviation
product. The MCAI describes the unsafe
condition as current inspection intervals
are no longer adequate to ensure timely
detection of deterioration or damage.
We are issuing this AD to require
actions to address the unsafe condition
on these products.
DATES: This AD is effective May 27,
2014.
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The Director of the Federal Register
approved the incorporation by reference
of certain publications listed in the AD
as of May 27, 2014.
ADDRESSES: You may examine the AD
docket on the Internet at https://
www.regulations.gov by searching for
and locating Docket No. FAA–2014–
0041; or in person at Document
Management Facility, U.S. Department
of Transportation, Docket Operations,
M–30, West Building Ground Floor,
Room W12–140, 1200 New Jersey
Avenue SE., Washington, DC 20590.
For service information identified in
¨
this AD, contact Ballonbau Worner
GmbH, Zirbelstrasse 57c, D–86154
Augsburg, Germany; telephone: +49 821
4504060; fax: +49 821 419641; Internet:
www.ballonbau.de. You may view this
referenced service information at the
FAA, Small Airplane Directorate, 901
Locust, Kansas City, Missouri 64106.
For information on the availability of
this material at the FAA, call (816) 329–
4148.
FOR FURTHER INFORMATION CONTACT: Karl
Schletzbaum, Aerospace Engineer, FAA,
Small Airplane Directorate, 901 Locust,
Room 301, Kansas City, Missouri 64106;
telephone: (816) 329–4123; fax: (816)
329–4090; email: karl.schletzbaum@
faa.gov.
SUPPLEMENTARY INFORMATION:
Discussion
We issued a notice of proposed
rulemaking (NPRM) to amend 14 CFR
part 39 to adding an AD that would
¨
apply to Ballonbau Worner GmbH
Model NL–280/STU, NL–380/STU, NL–
510/STU, NL–640/STU, NL–840/STU,
and NL–1000/STU airplane. The NPRM
was published in the Federal Register
on January 31, 2014 (79 FR 5319). The
NPRM proposed to correct an unsafe
condition for the specified products and
was based on mandatory continuing
airworthiness information (MCAI)
originated by an aviation authority of
another country. The MCAI states:
The results of an analysis of NL–STU
maintenance data revealed that the current
inspection intervals are no longer adequate to
ensure timely detection of deterioration or
damage, which could affected the structural
integrity of the balloon.
This condition, if not detected and
corrected, could lead to failure of balloon
components or envelope, possibly resulting
in loss of the balloon.
To address this potential unsafe condition,
¨
Ballonbau Worner developed new, more
detailed and descriptive Instructions for
Continued Airworthiness (at the same time
separated from the Flight Manual) and issued
Technische Mitteilung/Technical Note
EASA.BA.009–6 to inform all operators.
For the reasons described above, EASA
issued AD 2013–0293 to require compliance
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with the updated Instructions for Continued
Airworthiness. This AD is revised to extend
the compliance time for the initial porosity
test, for balloons which have already
exceeded the relevant threshold.
The MCAI can be found in the AD
docket on the Internet at: https://
www.regulations.gov/
#!documentDetail;D=FAA-2014-00410002.
Comments
We gave the public the opportunity to
participate in developing this AD. We
received no comments on the NPRM (79
FR 5319, January 31, 2014) or on the
determination of the cost to the public.
Conclusion
We reviewed the relevant data and
determined that air safety and the
public interest require adopting the AD
as proposed except for minor editorial
changes. We have determined that these
minor changes:
• Are consistent with the intent that
was proposed in the NPRM (79 FR 5319,
January 31, 2014) for correcting the
unsafe condition; and
• Do not add any additional burden
upon the public than was already
proposed in the NPRM (79 FR 5319,
January 31, 2014).
Costs of Compliance
We estimate that this AD will affect 6
products of U.S. registry. The scope of
the inspections may vary depending on
the condition of the balloon. We have
no way of knowing how extensive an
inspection may be necessary for each
balloon. The scope of damage found in
the inspections could vary significantly
from balloon to balloon. We have no
way of determining how much damage
may be found on each balloon or the
cost to repair damaged parts on each
balloon or the number of balloons that
may require repair.
Authority for This Rulemaking
Title 49 of the United States Code
specifies the FAA’s authority to issue
rules on aviation safety. 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.
We are issuing this rulemaking under
the authority described in ‘‘Subtitle VII,
Part A, Subpart III, Section 44701:
General requirements.’’ Under that
section, Congress charges the FAA with
promoting safe flight of civil aircraft in
air commerce by prescribing regulations
for practices, methods, and procedures
the Administrator finds necessary for
safety in air commerce. This regulation
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]]>Agencies
[Federal Register Volume 79, Number 77 (Tuesday, April 22, 2014)]
[Rules and Regulations]
[Pages 22359-22362]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-09091]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 985
[Doc. No. AMS-FV-14-0027; FV14-985-3 IR]
Spearmint Oil Produced in the Far West; 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
Spearmint Oil Administrative Committee (Committee), for the 2014-15 and
subsequent marketing years from $0.10 to $0.09 per pound of spearmint
oil handled. The Committee locally administers the marketing order
which regulates the handling of spearmint oil produced in the Far West.
Assessments upon spearmint oil handlers are used by the Committee to
fund reasonable and necessary expenses of the program. The marketing
year begins June 1 and ends May 31. The assessment rate will remain in
effect indefinitely unless modified, suspended, or terminated.
Effective April 23, 2014. Comments received by June 23, 2014, 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 and Agreement Division, Fruit and Vegetable Program,
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 document 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: Manuel Michel, Marketing Specialist,
or Gary D. Olson, Regional Director, Northwest Marketing Field Office,
Marketing Order and Agreement Division, Fruit and Vegetable Program,
AMS, USDA; Telephone: (503) 326-2724, Fax: (503) 326-7440, or Email:
Manuel.Michel@ams.usda.gov or GaryD.Olson@ams.usda.gov.
Small businesses may request information on complying with this
regulation by contacting Jeffrey Smutny, 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: Jeffrey.Smutny@ams.usda.gov.
[[Page 22360]]
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing Order
No. 985 (7 CFR part 985), as amended, regulating the handling of
spearmint oil grown in the Far West (Washington, Idaho, Oregon, and
designated parts of Nevada and Utah), 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 Orders 12866, 13563, and 13175.
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. Under the order now in effect, Far West spearmint oil
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 spearmint oil
beginning June 1, 2014, 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 2014-15 and subsequent marketing years from $0.10 to
$0.09 per pound of spearmint oil handled.
The Far West spearmint oil 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 of Far West
spearmint oil. They are familiar with the Committee's needs and with
the costs for goods and services in their local area and thus are in a
position to formulate an appropriate budget and assessment rate. The
assessment rate is formulated and discussed in a public meeting. All
persons directly affected have an opportunity to participate and
provide input.
For the 2003-04 and subsequent marketing years, the Committee
recommended and USDA approved, an assessment rate that would continue
in effect from marketing year to marketing 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 February 19, 2014, and unanimously recommended
2014-15 expenditures of $266,400 and an assessment rate of $0.09 per
pound of spearmint oil handled. In comparison, last year's budgeted
expenditures were $220,970. The assessment rate of $0.09 is $0.01 lower
than the rate currently in effect. The assessment rate decrease is
necessary to reduce the funds held in the operating reserve in order to
not exceed approximately one marketing year's operational expenses
(Sec. 985.42(a)).
The major expenditures recommended by the Committee for the 2014-15
marketing year include $25,500 for Committee expenses; $195,900 for
administrative expenses; and $45,000 for market research and promotion
expenses. Budgeted expenses for these items in 2013-14 were $21,500 for
Committee expenses; $190,470 for administrative expenses; and $9,000
for market research and promotion expenses.
The assessment rate recommended by the Committee was derived by
dividing anticipated expenses by the expected quantity of Far West
spearmint oil handled. The Committee estimates that 2,500,000 pounds of
spearmint oil will be handled, which should provide $225,000 in
assessment income. Income derived from handler assessments, along with
interest income and funds from the Committee's authorized operating
reserve will be adequate to cover budgeted expenses. Funds in the
operating reserve (currently $321,689) will be reduced to comply with
the maximum permitted by the order of approximately one marketing
year's operational expenses.
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
marketing 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 2014-15 budget and those
for subsequent marketing 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
businesses 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 eight spearmint oil handlers subject to regulation under
the order, and approximately 39 producers of Scotch spearmint oil and
approximately 91 producers of Native spearmint oil in the regulated
production area. Small agricultural service firms are defined by the
Small Business Administration (SBA) as those having annual receipts of
less than $7,000,000, and small agricultural producers are defined as
those having annual receipts of less than $750,000 (13 CFR 121.201).
Based on the SBA's definition of small entities, the Committee
estimates that two of the eight handlers regulated by the order could
be considered small entities. Most of the handlers are large
corporations involved in the international trading of essential oils
and the products of essential oils. In addition, the Committee
estimates that 22 of the 39 Scotch spearmint oil producers, and 29 of
the 91 Native spearmint oil producers could be classified as small
entities under the SBA definition. Thus, a majority of handlers and
producers of Far West
[[Page 22361]]
spearmint oil may not be classified as small entities.
The Far West spearmint oil industry is characterized by producers
whose farming operations generally involve more than one commodity, and
whose income from farming operations is not exclusively dependent on
the production of spearmint oil. A typical spearmint oil-producing
operation has enough acreage for rotation such that the total acreage
required to produce the crop is about one-third spearmint and two-
thirds rotational crops. Thus, the typical spearmint oil producer has
to have considerably more acreage than is planted to spearmint during
any given season. Crop rotation is an essential cultural practice in
the production of spearmint oil for purposes of weed, insect, and
disease control. To remain economically viable with the added costs
associated with spearmint oil production, a majority of spearmint oil-
producing farms fall into the SBA category of large businesses.
This rule decreases the assessment rate established for the
Committee and collected from handlers for the 2014-15 and subsequent
marketing years from $0.10 to $0.09 per pound of spearmint oil handled.
The Committee unanimously recommended 2014-15 expenditures of $266,400
and an assessment rate of $0.09. The assessment rate of $0.09 is $0.01
lower than the 2013-14 rate. The quantity of assessable spearmint oil
for the 2014-15 marketing year is estimated at 2,500,000 pounds. Thus,
the $0.09 rate should provide $225,000 in assessment income. Income
derived from handler assessments, along with interest income and funds
from the Committee's authorized operating reserve will be adequate to
cover budgeted expenses.
The major expenditures recommended by the Committee for the 2014-15
marketing year include $25,500 for Committee expenses, $195,900 for
administrative expenses, and $45,000 for market research and promotion
expenses. Budgeted expenses for these items in 2013-14 were $21,500,
$190,470, and $9,000, respectively.
The lower assessment rate is necessary to reduce the operating
reserve balance and not exceed approximately one marketing year's
expenses as provided for in Sec. 985.42. The operating reserve balance
is expected to be $321,689 on May 31, 2014. This amount exceeds the
maximum authorized reserve amount of $266,400 by $55,289. Assessment
income for 2014-15 is estimated at $225,000, while expenses are
estimated at $266,400. The Committee anticipates using $41,400 of their
operating reserve fund for the 2014-15 marketing year.
The Committee discussed alternatives to this action. Leaving the
assessment rate at the current $0.10 per pound was initially
considered, but not recommended, because the Committee would like to
decrease the level of the operating reserve so that it is not more than
approximately one marketing year's expenses. Lower assessment rates
were considered, but also not recommended, because they would not
generate the amount of income necessary to administer the program. The
Committee ultimately determined that an assessment rate of $0.09 per
pound, which should generate assessment income of $225,000, combined
with operating reserve funds, would be sufficient to meet its 2014-15
expenses.
A review of historical data and preliminary information pertaining
to the upcoming marketing year indicates that the producer price for
the 2014-15 season could range between $17.00 and $19.00 per pound of
spearmint oil. Therefore, the estimated assessment revenue for the
2014-15 marketing year as a percentage of total grower revenue could
range between 0.47 and 0.53 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 Far West spearmint oil industry and all
interested persons were invited to attend the meeting and participate
in Committee deliberations on all issues. Like all Committee meetings,
the February 19, 2014, 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 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, Vegetable and Specialty Crops. 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 Far West spearmint oil 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 Jeffrey Smutny 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 2014-15 marketing year begins on June 1,
2014, and the marketing order requires that the rate of assessment for
each marketing year apply to all assessable spearmint oil handled
during such marketing year; (2) this action decreases the assessment
rate for assessable spearmint oil beginning with the 2014-15 marketing
year; (3) handlers are aware of this action which was unanimously
recommended by the Committee at a public meeting; and (4) this interim
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 985
Marketing agreements, Oils and fats, Reporting and recordkeeping
requirements, Spearmint oil.
[[Page 22362]]
For the reasons set forth in the preamble, 7 CFR part 985 is
amended as follows:
PART 985--MARKETING ORDER REGULATING THE HANDLING OF SPEARMINT OIL
PRODUCED IN THE FAR WEST
0
1. The authority citation for 7 CFR part 985 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Section 985.141 is revised to read as follows:
Sec. 985.141 Assessment rate.
On and after June 1, 2014, an assessment rate of $0.09 per pound is
established for Far West spearmint oil. Unexpended funds may be carried
over as a reserve.
Dated: April 16, 2014.
Rex A. Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2014-09091 Filed 4-21-14; 8:45 am]
BILLING CODE P
