Reauthorization of the United States Grain Standards Act, 49855-49863 [2016-17762]
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49855
Rules and Regulations
Federal Register
Vol. 81, No. 146
Friday, July 29, 2016
This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
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DEPARTMENT OF AGRICULTURE
Grain Inspection, Packers and
Stockyards Administration
7 CFR Part 800
RIN 0580–AB24
Reauthorization of the United States
Grain Standards Act
Grain Inspection Packers and
Stockyards Administration, USDA.
ACTION: Final rule.
AGENCY:
The Department of
Agriculture (USDA) Grain Inspection,
Packers and Stockyards Administration
(GIPSA) is revising existing regulations
and adding new regulations under the
United States Grain Standards Act
(USGSA), as amended, in order to
comply with amendments to the USGSA
made by the Agriculture
Reauthorizations Act of 2015.
Specifically, this rulemaking eliminates
mandatory barge weighing, removes the
discretion for emergency waivers of
inspection and weighing, revises
GIPSA’s fee structure, revises
exceptions to official agency geographic
boundaries, extends the length of
licenses and designations, and imposes
new requirements for delegated States.
DATES: Effective July 29, 2016.
FOR FURTHER INFORMATION CONTACT:
Barry Gomoll, 202–720–8286.
Persons with disabilities who require
alternative means for communication
(Braille, large print, audio tape, etc.)
should contact the USDA Target Center
at (202) 720–2600 (voice and TDD).
SUPPLEMENTARY INFORMATION:
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SUMMARY:
Overview
On September 30, 2015, President
Obama signed into law the Agriculture
Reauthorizations Act of 2015, Public
Law 114–54 (The Reauthorization Act).
In addition to extending certain
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provisions of the USGSA (7 U.S.C. 71–
87k) to 2020, the Reauthorization Act
also made several changes to the
existing law. Therefore, GIPSA issued a
proposed rule in the Federal Register to
amend 7 CFR part 800 to comply with
the amendments made by the
Reauthorization Act and solicited
comments from interested parties (81 FR
3970). Specifically, GIPSA proposed to:
• Remove the requirement to
officially weigh inbound barge
shipments at export port locations
(§ 800.15 and § 800.216);
• approve requests for waivers of
official inspection and weighing
requirements for export grain in
‘‘emergencies or other circumstances
that would not impair the objectives of
the [USGSA] whenever the parties to a
contract for such shipment mutually
agree to the waiver and documentation
of such agreement is provided to the
Secretary prior to shipment’’ (§ 800.18);
• base the portion of fees assessed on
tonnage on the 5-year rolling average of
export tonnage volume (§ 800.71);
• adjust fees annually to maintain a 3
to 6 month operating reserve for
inspection and supervision services
(§ 800.71);
• remove the provision that allows
applicants to request service from an
official agency outside an assigned
geographic region after 90 days of
nonuse of service (§ 800.117);
• waive the geographic boundaries
established for official agencies between
two adjacent official agencies if both
official agencies agree in writing to the
waiver (§ 800.117);
• without changing current
termination dates, terminate inspection
licenses every 5 years instead of every
3 years (§ 800.175);
• require delegated States to notify
GIPSA of any intent to temporarily
discontinue official inspection or
weighing services at least 72 hours in
advance, except in the case of a major
disaster (§ 800.195);
• review delegated states every 5
years and certify that they comply with
the requirements for delegation under
the USGSA (§ 800.195);
• require designated official agencies
to respond to concerns identified during
GIPSA’s consultations with customers
as part of the renewal of a designation
(§ 800.196); and
• extend the minimum length of
designation for official agencies from 3
years to 5 years (§ 800.196).
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Fees
GIPSA last made changes to its fee
schedule on May 1, 2013 (78 FR 22151–
66). At that time, GIPSA determined
that the existing fee schedule for
inspection and weighing services would
not generate sufficient revenue to
adequately cover program costs through
fiscal year 2017. To correct this problem
and to build an operating reserve,
GIPSA increased fees by 5 percent in
fiscal year 2013 and an additional 2
percent for each successive year through
fiscal year 2017.
In addition, GIPSA restructured its
tonnage fees to more accurately reflect
the administrative and supervisory costs
at the national and local level. In order
to establish an equitable tonnage fee for
all export tonnage utilizing the official
system, GIPSA began assessing the
national tonnage fee on all export grain
inspected and/or weighed (excluding
land carrier shipments to Canada and
Mexico) by delegated States and
designated agencies. GIPSA also shifted
workers compensation costs from the
national to the local level to fully reflect
where those workers compensation
costs originated.
Prior to the Reauthorization Act,
GIPSA used projected future tonnage
volumes as a basis to calculate tonnage
fees. The Reauthorization Act amended
the USGSA to require that tonnage fees
be based on the five-year rolling average
of export tonnage volumes. In order to
comply with this new tonnage fee
requirement, GIPSA proposed to adjust
both the national and local tonnage fees
on a yearly basis. GIPSA proposed that
the national tonnage fee would be the
national program administrative costs
(the costs of management and support of
official inspection and weighing) for the
previous fiscal year divided by the
average export tonnage for the previous
5 fiscal years. Also, the local tonnage
fees would be the Field Office
administrative costs (the costs of
management, support, and maintenance
of each Field Office) for the previous
fiscal year divided by the average
tonnage serviced by that Field Office for
the previous 5 fiscal years.
The Reauthorization Act further
requires adjustment of all of GIPSA’s
fees for the performance, supervision,
and administration of official inspection
and weighing services at least annually
to maintain a 3 to 6 month operating
reserve. Given that the number of
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requests for official inspection and
weighing services varies with the
amount of grain produced and exported
from year to year, an operating reserve
allows funding of operations in periods
during which revenue may not equal or
exceed costs. In order to maintain an
appropriate level of operating reserve,
GIPSA proposed to increase or decrease
inspection and weighing fees when the
operating reserve is less than 3 times or
more than 6 times monthly operating
expenses. For each $1 million that the
operating reserve is below 3 months or
above 6 months of the operating
expenses, GIPSA would increase or
decrease fees by 2 percent, respectively.
GIPSA also proposed to set a 5 percent
limit on changes to fees for service per
calendar year. GIPSA’s annual user fee
revenue for performance, supervision,
and administration of official inspection
and weighing is approximately $40
million. Therefore, an increase or
decrease of 2 to 5 percent would
approximately equal between $0.8 and
$2 million annually.
In addition to these annual reviews of
fees, GIPSA will continue to evaluate
the financial status of the official
inspection and weighing services to
ensure that the revenue for each service
covers the cost to GIPSA of providing
that service. Also, GIPSA will continue
to seek out cost saving measures and
implement appropriate changes to
reduce costs and minimize the need for
fee increases.
This action is authorized under the
USGSA (7 U.S.C. 79(j)), which provides
for the establishment and collection of
fees that are reasonable and, as nearly as
practicable, cover the costs of the
services rendered, including associated
administrative and supervisory costs.
The tonnage fees cover the GIPSA
administrative and supervisory costs for
the performance of GIPSA’s official
inspection and weighing services;
including personnel compensation and
benefits, travel, rent, communications,
utilities, contractual services, supplies,
and equipment.
Exceptions to Geographic Boundaries
The Reauthorization Act requires
changes to GIPSA’s exception program
for official agencies to operate outside of
their geographically assigned areas.
Prior to the Reauthorization Act, the
regulations provided for three types of
exceptions: Timely service, nonuse of
service for 90 consecutive days, and
barge probe inspections. The
Reauthorization Act amended the
USGSA to eliminate the nonuse of
service exception and add a provision
for geographically adjacent agencies to
provide service in each other’s assigned
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geographic territories at an applicant’s
request if both agencies agree in writing.
GIPSA proposed to revise the current
regulations to comply with the changes
to the USGSA by the Reauthorization
Act.
GIPSA currently has 95 agreements
for agencies to operate outside of their
assigned territories and GIPSA will
continue to honor those agreements.
Under GIPSA’s proposed rule, an
agency would be permitted to provide
service at a location in another adjacent
agency’s territory, provided that both
agencies and the applicant for service
submit an agreement in writing to
GIPSA.
Delegations
As required by the Reauthorization
Act, GIPSA proposed to impose new
requirements on State agencies that
GIPSA delegates to perform export
inspection and weighing services at
export port locations under the USGSA.
The Reauthorization Act requires the
Secretary to certify that State agencies
continue to meet statutory requirements.
Accordingly, GIPSA will review each
delegated state every 5 years to
determine that it meets the criteria for
delegation set forth in the USGSA.
GIPSA proposed to implement a process
mirroring the existing process that
GIPSA uses to renew the designations of
official agencies. The Reauthorization
Act also requires that a delegated State
must notify GIPSA in writing of any
intent to discontinue providing official
service at least 72 hours prior to
discontinuation. GIPSA proposed to add
this requirement to the section of the
regulations concerning responsibilities
of delegated States (7 CFR 800.195(f)).
Emergency Waivers
The Reauthorization Act amended the
USGSA (7 U.S.C 77(a)(1)) to state, ‘‘The
Secretary shall waive the foregoing
requirement [that all grain exported
from the U.S. be officially inspected and
weighed] in emergency or other
circumstances that would not impair the
objectives of this chapter whenever the
parties to a contract for such shipment
mutually agree to the waiver and
documentation of such agreement is
provided to the Secretary prior to
shipment.’’ This change to the USGSA
substituted the word ‘‘shall’’ in place of
the former word ‘‘may,’’ indicating that
GIPSA no longer has discretion to
approve waivers of official inspection
and weighing requirements in
emergencies. For this reason, GIPSA
determined that it is important to clarify
what constitutes an emergency.
In the proposed rule, GIPSA proposed
to define the term ‘‘emergency’’ in 7
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CFR 800.00 as ‘‘a situation outside the
control of the Service or a delegated
State that prevents prompt issuance of
certificates in accordance with
§ 800.160(c).’’ The proposed rule linked
the definition of ‘‘emergency’’ to the
timely issuance of certificates. Upon
further reflection, linking waivers to
certification does not cover situations
where no service is provided.
Certificates would never be issued in
circumstances where no official
inspection or weighing occurs.
Accordingly, GIPSA is revising the
definition of ‘‘emergency’’ from the
proposed rule to more closely tie
emergency situations to the ability of
GIPSA or a delegated State to provide
official services in a timely manner
when requested. The issuance of
certificates, as described in 7 CFR
800.160(c), provides that a certificate
must be issued by the close of business
on the next business day after
inspection or weighting. The proposed
regulation incorporated that time
period. Currently, 7 CFR 800.18(b)(6)
provides a 24-hour period for granting a
waiver for circumstances in which
service is not available. Because GIPSA
is no longer linking emergency waivers
with only the issuance of certificates in
800.160(c), GIPSA has decided to set the
determination for emergency waivers
based on this same time frame as
800.18(b)(6).
Timely service delivery ensures that
GIPSA will continue to facilitate the
marketing of cereals and oilseeds and
issue certificates in accordance with the
regulations. To that end, the emergency
waiver provisions provide a mechanism
for grain shipments to continue in a
situation that prevents service delivery
within 24 hours of the scheduled
service time.
Comment Review
GIPSA received nine comments in
response to the proposed rule published
January 25, 2016, in the Federal
Register (81 FR 3970). One comment
was a request for extension of the
comment period, which GIPSA granted
on February 24, 2016 (81 FR 9122). Two
grain industry associations submitted a
joint comment, which was supported by
an additional submission from several
other grain industry associations. Other
comments were submitted by an
association of official inspection
agencies, a farm organization, a grain
elevator operator, and two private
individuals, one of whom submitted
two separate comments. Two of the
eight comments concerned quinoa and
rice standards, commodities which are
not covered under the USGSA and this
rulemaking. All comments were
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supportive of the proposed rule, with
some suggested changes to the proposed
regulations. Suggestions are addressed
below in the order they appear in the
regulations.
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Emergency Waivers (7 CFR 800.0 and
18)
Several commenters suggested
changes to GIPSA’s proposed definition
of the term ‘‘emergency.’’ The grain
industry associations suggested that
GIPSA remove the terms ‘‘outside of the
control of the Service or a delegated
State’’ from the definition. They felt this
would allow GIPSA to use excuses to
avoid issuing emergency waivers. The
farm organization commented that
waivers of official inspection and
weighing, even in emergency situations,
could impair the objectives of the
USGSA. They suggested that GIPSA
define ‘‘emergency,’’ as narrowly as
possible.
GIPSA notes that the intent of
Congress in changing the language of
the USGSA is to remove the Secretary’s
discretionary authority to deny
emergency waivers. But, GIPSA does
not agree with the industry associations’
comment that GIPSA does not have the
authority to define the term through the
rulemaking process. Without a concrete
definition, what constitutes an
emergency is ambiguous and requires
clarification.
For example, the industry
associations’ suggestion that any
situation that prevents service should
constitute an emergency is far too broad.
This suggestion makes possible
‘‘emergency’’ situations in cases where
the applicant or other interested party
could have otherwise taken steps to
allow official inspection or weighing to
occur. GIPSA does agree, however, with
the industry associations’ comment that
whether the situation is under the
control of GIPSA should not matter for
determining an emergency. But, GIPSA
also agrees with the farm organization’s
comment that excessive waivers could
impair the USGSA as they allow grain
to be exported from the U.S. without
official inspection or weighing.
Therefore, GIPSA finds it important to
define ‘‘emergency’’ in the regulations
to prevent future confusion over what
does and does not constitute an
emergency. GIPSA is adopting a
definition of ‘‘emergency’’ to describe
situations outside of the control of the
applicant for service, as defined in the
regulations. Under this definition,
applicants would still be responsible for
complying with the requirements for
obtaining official service listed in 7 CFR
800.46.
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Waivers for Other Circumstances (7 CFR
800.18)
The industry associations and farm
organization both addressed the
issuance of waivers in circumstances
other than emergencies. The industry
associations point out that the language
of the USGSA provides for mandatory
waivers in instances other than
emergencies for ‘‘other circumstances
that would not impair the objectives of
the USGSA when the buyer and seller
agree to waive official inspection and
weighing requirements.’’ The
associations requested that GIPSA revise
the language in 7 CFR 800.18(b)(7)(A)
and (B) to be inclusive of this. The
associations contend that waivers must
be granted regardless of whether an
‘‘emergency’’ exists. The farm
organization maintains that by allowing
grain to ship without certification of
quality or quantity, waivers impair the
objectives of the USGSA and should not
be granted in non-emergency situations.
7 CFR 800.18 provides for two
categories of waivers: (1) Emergency and
(2) other circumstances that do not
impair the objectives of the USGSA. The
Reauthorization Act removed GIPSA’s
discretionary authority to approve such
waivers but added to the second
category the condition that the parties to
a contract must mutually agree to the
waiver and provide documentation to
GIPSA. The proposed rule incorporated
portions of this language in 7 CFR
800.18, but review of the comments
showed that this interpretation would
be misconstrued to connect ‘‘emergency
waivers’’ with the ‘‘other
circumstances’’ waivers.
In the Congressional findings and
declaration of policy (7 U.S.C. 74), the
objectives of the USGSA include ‘‘that
grain may be marketed in an orderly and
timely manner and that trading in grain
may be facilitated’’ and ‘‘that the
primary objective of the official United
States standards for grain is to certify
the quality of grain as accurately as
practicable.’’
GIPSA already provides for waivers in
‘‘other circumstances that would not
impair objectives of [the USGSA]’’ in 7
CFR 800.18. GIPSA provides waivers
for: Elevators that ship fewer than
15,000 metric tons in a calendar year,
grain exported for seeding purposes,
grain shipped in bond, grain exported
by rail or truck to Canada or Mexico,
grain not sold by grade (7 U.S.C. 77
provides for this specific category of
waiver), service not available, and high
quality specialty grain shipped in
containers. GIPSA has determined that
these circumstances, as described in the
regulations, do not impair the objectives
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of the USGSA and that granting them
helps facilitate the marketing of U.S.
grain. GIPSA has historically used the
notice-and-comment process of the
Federal Register to determine which
circumstances do not impair the
objectives of the USGSA. Soliciting
public opinion is the best method for
determining other classes of waivers
that do not impair the objectives of the
USGSA. GIPSA agrees with the farm
organization that waivers run counter to
the objective of certifying grain as
accurately as practicable and that
excessive waivers would lead to a loss
of confidence in U.S. exports. Provided
that parties reach mutual agreement and
provide notice to GIPSA, the amended
USGSA requires GIPSA to consider
what other circumstances for waivers
would not impair the objectives of the
USGSA. Additional general regulation is
not required. For these reasons, GIPSA
is omitting the proposed sections
800.118(b)(7)(B) & (C) from the final rule
and is not adding a new blanket
category of waivers for situations in
which the buyer and seller agree to
waive official inspection or Class X
weighing.
Fees for Official Inspection and
Weighing (7 CFR 800.71)
The grain industry associations
recommend that GIPSA use the
midpoint of the 3 to 6 month reserve
figure as the determination of when fees
are to be adjusted. They suggest that fees
should be raised or lowered based on
whether they exceed or fall below 4.5
months reserve. They agreed with
GIPSA’s proposal of 2 percent increase
per $1 million above or below the target
amount, though they disagreed with
GIPSA’s proposal of a 5 percent limit
per year on increases or decreases and
suggested there be no limit.
GIPSA agrees with the
recommendation of setting the trigger
for adjusting fees at the midpoint of 4.5
months reserve. This target should
better help GIPSA to maintain a 3 to 6
month operating reserve. GIPSA
disagrees with the grain industry
associations’ suggestion that there be no
limit. GIPSA believes that a yearly limit
on fee increases and decreases is
necessary to provide a more stable fee
structure from year to year, which
affects all sectors of the industry. While
a large decrease would likely be
welcomed by producers, marketers, and
consumers, GIPSA believes that the
possibility of a large increase in future
years would be untenable to these same
groups. In the April 15, 2013, fee rule
(78 FR 22151), GIPSA increased fees by
5 percent in the first year and by 2
percent in each ensuing year, in order
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to minimize the impact of a large
increase. GIPSA feels that the annual 5
percent cap follows this precedent of
minimizing the impact of large fee
changes. Moreover, if the monthly
operating reserve falls outside the 3 to
6 month reserve by an amount that
cannot be adjusted by the automatic
corrections established in this
regulation, then GIPSA will reconsider
the fees through additional rulemaking.
The grain industry associations
recommended that GIPSA suspend the
fee for supervision of official agency
inspection and weighing, which GIPSA
has done with a notice in the June 28,
2016, edition of the Federal Register (81
FR 41790). Their recommendations for
changes to fees for rice and commodity
inspections fall outside the scope of this
rulemaking.
The grain industry associations
recommended that GIPSA perform
annual reviews of all fees in Schedule
A of 7 CFR 800.71 in order to keep them
in balance with each other. GIPSA
currently conducts such a review
approximately every five years. GIPSA
proposed adding language to the
regulations declaring its intent to
continue periodic reviews. These
reviews are intended to ensure that the
fees for service are closely aligned with
GIPSA’s costs to provide these services.
These reviews, along with departmental
approval, comment solicitation, and
comment review are often lengthy and
costly processes. Because the automatic
increases and decreases of all fees
should maintain a 3 to 6 month
operating reserve, GIPSA believes a
complete review of fees every year
would impose unnecessary time and
money costs that would exceed any
potential gain to stakeholders.
The grain industry associations
recommended that GIPSA perform an
annual review of expenses and work to
bring those expenses down. They also
mentioned that GIPSA should publish
financial data for the preceding fiscal
year by the beginning of the ensuing
calendar year.
GIPSA is aware that the export grain
industry is highly competitive and
operates on slim margins. Accordingly,
GIPSA takes measures to reduce costs
whenever possible. In the recent past,
GIPSA reduced cost by taking advantage
of employee attrition to not fill positions
after retirement, using intermittent and
seasonal employees in export offices,
and using alternative work schedules in
order to reduce employee overtime
hours. GIPSA publishes extensive
financial data in its annual report to
Congress. Additionally, GIPSA has
made and will continue to make
financial information available on its
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public Web site prior to the release of
the annual report to Congress.
Geographic Boundary Exceptions (7
CFR 800.117)
The commenter representing an
official inspection agency association
recommended that GIPSA change the
proposed language in 7 CFR
800.117(b)(3) to reflect the intent of
Congress to remove GIPSA’s discretion
to approve waivers of official agency
boundaries based on signed agreements.
They acknowledge that GIPSA must still
be notified of such agreements and
review the agreements for compliance
with the USGSA. Another commenter
expressed support for allowing such
agreements between adjacent official
agencies. Since the Reauthorization Act
amended the USGSA to read that ‘‘the
Secretary shall allow a designated
official agency to cross boundary lines’’
if certain provisions are met (7 U.S.C.
79(f)(2)), GIPSA agrees with the
recommendation and is changing the
language contained in the proposed
rule.
Delegations (7 CFR 800.195)
The grain industry association
commenters recommended a few
changes to GIPSA’s proposed rule
language concerning delegations of State
agencies. They recommended that a
delegated State must notify all affected
export port locations and elevator
operators, in addition to notifying
GIPSA, 72 hours in advance of any
intent to discontinue service. They also
recommended including language
requiring GIPSA to notify Congress
within 24 hours of any disruption.
The Reauthorization Act only requires
delegated States to notify GIPSA of any
intent to discontinue service, while
requiring GIPSA to ‘‘immediately take
such actions as are necessary to address
the disruption and resume inspections
or weighings’’ (7 U.S.C. 77(d)(1)). Under
such circumstances, it would fall on
GIPSA to provide notification to
customers. GIPSA declines to include
language in the regulations concerning
its requirement to notify Congress, as
that is already required by the USGSA
(7 U.S.C. 77(d)(2)) and inclusion in the
regulations is unnecessary.
Additionally, the industry
commenters recommended that the
reviews of delegated States should start
no later than September 30, 2016, and
that funding for the reviews be derived
solely from appropriated funds. GIPSA
intends to conduct formal reviews for
each of the five delegated States
mirroring the existing process that
GIPSA uses to renew the designations of
official agencies. GIPSA intends to
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conduct the first review prior to
September 30, 2016, and plans to
conduct reviews for every State before
certain provisions of the USGSA are set
to expire on October 1, 2020. GIPSA
finds that the inclusion of language in
the regulations concerning the funding
of delegation review through
appropriated funds to be unnecessary.
The USGSA only authorizes user fees to
cover the costs incidental to official
inspection and weighing and related
supervision and administration
activities (7 U.S.C. 79(j) and 7 U.S.C.
79a(l)). Appropriated funds are
authorized to perform compliance
activities (7 U.S.C. 87h), which includes
delegation reviews.
Final Action
Based on the above review of
comments received in response to 81 FR
3970, GIPSA is amending the
regulations of 7 CFR part 800 as
outlined in the proposed rule, with
exceptions noted in the comment
review.
Executive Orders 12866 and 13563 and
the Regulatory Flexibility Act
The Office of Management and Budget
has designated this rulemaking as not
significant under Executive Order
12866, ‘‘Regulatory Planning and
Review’’ and Executive Order 13563,
‘‘Improving Regulation and Regulation
Review.’’ Since grain export volume can
vary significantly from year to year,
estimating the impact in any future fee
changes can be difficult. GIPSA
recognizes the need to provide
predictability to the industry for
inspection and weighing fees. While not
required by the Reauthorization Act,
this rulemaking limits the impact of a
large annual change in fees by setting an
annual cap of 5 percent for increases or
decreases in inspection and weighing
fees. The statutory requirement to
maintain an operating reserve between 3
and 6 months of operating expenses
ensures that GIPSA can adequately
cover its costs without imposing an
undue burden on its customers.
Currently, GIPSA regularly reviews its
user-fee financed programs to determine
if the fees charged for performing
official inspection and weighing
services adequately cover the cost of
providing those services. This policy
remains unchanged in this proposed
regulation. GIPSA will continue to seek
out cost saving measures and implement
appropriate changes to reduce its costs
to provide alternatives to fee increases.
This rulemaking is unlikely to have
an annual effect of $100 million or more
or adversely affect the economy. The
changes to the regulation in this
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rulemaking are a direct response to
Congressional action. Also, under the
requirements set forth in the Regulatory
Flexibility Act (RFA) (5 U.S.C. 601–12),
GIPSA has considered the economic
impact of this rulemaking on small
entities. The purpose of the Regulatory
Flexibility Act is to fit regulatory actions
to the scale of businesses subject to such
actions. This ensures that small
businesses will not be unduly or
disproportionately burdened. GIPSA is
issuing this rulemaking solely because
the Reauthorization Act amended the
USGSA, which requires that the
regulations be updated to reflect the
changes made to the USGSA by the
Reauthorization Act.
The Small Business Administration
(SBA) defines small businesses by their
North American Industry Classification
System Codes (NAICS). This rulemaking
affects customers of GIPSA’s official
inspection and weighing services in the
domestic and export grain markets
(NAICS code 115114). Fees for that
program are in Schedules A (Tables 1–
3) and B of section 800.71 of GIPSA’s
regulations (7 CFR 800.71).
Under the USGSA, all grain exported
from the United States must be officially
inspected and weighed. GIPSA provides
mandatory inspection and weighing
services at 45 export facilities in the
United States and 7 facilities for U.S.
grain transshipped through Canadian
ports. Five delegated State agencies
provide mandatory inspection and
weighing services at 13 facilities. All of
these facilities are owned by multinational corporations, large
cooperatives, or public entities that do
not meet the requirements for small
entities established by the SBA. Further,
the provisions of this rulemaking apply
equally to all entities. The USGSA
requires the registration of all persons
engaged in the business of buying grain
for sale in foreign commerce. In
addition, those persons who handle,
weigh, or transport grain for sale in
foreign commerce must also register.
The regulations found at 7 CFR 800.30
define a foreign commerce grain
business as persons who regularly
engage in buying for sale, handling,
weighing, or transporting grain totaling
15,000 metric tons or more during the
preceding or current calendar year.
Currently, there are 108 businesses
registered to export grain, most of which
are not small businesses.
Most users of the official inspection
and weighing services do not meet the
SBA requirements for small entities.
Further, GIPSA is required by statute to
make services available to all applicants
and to recover the costs of providing
such services as nearly as practicable,
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while maintaining a 3 to 6 month
operating reserve. There are no
additional reporting, record keeping, or
other compliance requirements imposed
upon small entities as a result of this
rulemaking. GIPSA has not identified
any other federal rules which may
duplicate, overlap, or conflict with this
rulemaking. Because this rulemaking
does not have a significant economic
impact on a substantial number of small
entities, an initial regulatory flexibility
analysis is not provided.
Executive Order 12988
This rulemaking has been reviewed
under Executive Order 12988, ‘‘Civil
Justice Reform.’’ This rulemaking does
not preempt State or local laws,
regulations, or policies unless they
represent an irreconcilable conflict with
this rulemaking. This rulemaking does
not have retroactive effect.
Executive Order 13132
This rulemaking has been reviewed
under Executive Order 13132,
‘‘Federalism.’’ The policies in this
rulemaking do not have any substantial
direct effect on States, on the
relationship between federal
government and the States, or on the
distribution of power and
responsibilities among various levels of
government, except as required by law.
This rulemaking does not impose
substantial direct compliance costs on
State and local governments. Because
States already retain records for their
ordinary operations, § 800.195(g)(4)
should not have a significant impact on
State governments. Therefore,
consultation with the States is not
required.
Executive Order 13175
This rulemaking has been reviewed
under Executive Order 13175,
‘‘Consultation and Coordination with
Indian Tribal Governments.’’ To our
knowledge, this rulemaking does not
have tribal implications that require
tribal consultation under Executive
Order 13175. If a Tribe requests
consultation, GIPSA will work with the
USDA Office of Tribal Relations to
ensure meaningful consultation is
provided where changes, additions, and
modifications identified in this
rulemaking are not expressly mandated
by the Reauthorization Act.
Paperwork Reduction Act
In compliance with the Paperwork
Reduction Act of 1995 (44 U.S.C.
chapter 35), the information collection
and record keeping requirements
included in this rulemaking have been
approved by the OMB under control
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49859
number 0580–0013, which expires on
January 31, 2018.
GIPSA is committed to complying
with the Government Paperwork
Elimination Act, which requires
Government agencies in general to
provide the public the option of
submitting information or transacting
business electronically to maximum
extent possible.
E-Government Compliance
GIPSA is committed to complying
with the E-Government Act, to promote
the use of the Internet and other
information technologies to provide
increased opportunities for citizen
access to Government information and
services, and for other purposes.
List of Subjects in 7 CFR Part 800
Administrative practice and
procedure, Exports, Grains, Reporting
and recordkeeping requirements.
For the reasons set out in the
preamble, GIPSA amends 7 CFR part
800 as follows:
PART 800—GENERAL REGULATIONS
1. The authority citation for part 800
continues to read as follows:
■
Authority: 7 U.S.C. 71–87k.
2. In § 800.0, in paragraph (b), add in
alphabetical order definitions for
‘‘Emergency’’, ‘‘Field Office
administrative costs’’, ‘‘National
program administrative costs’’,
‘‘Operating expenses’’, and ‘‘Operating
reserve’’ to read as follows:
■
§ 800.0
Meaning of terms.
*
*
*
*
*
(b) * * *
Emergency. A situation that is outside
the control of the applicant that
prevents official inspection or weighing
services within 24 hours of the
scheduled service time.
*
*
*
*
*
Field Office administrative costs. The
costs of management, support, and
maintenance of a Field Office,
including, but not limited to, the
management and administrative support
personnel, rent, and utilities. This does
not include any costs directly related to
providing original or review inspection
or weighing services.
*
*
*
*
*
National program administrative
costs. The costs of national management
and support of official grain inspection
and/or weighing. This does not include
the Field Office administrative costs and
any costs directly related to providing
service.
*
*
*
*
*
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Operating expenses. The total costs to
the Service to provide official grain
inspection and/or weighing services.
Operating reserve. The amount of
funds the Service has available to
provide official grain inspection and/or
weighing services.
*
*
*
*
*
§ 800.15
[Amended]
3. Amend § 800.15 by removing
paragraph (b)(2) and redesignating
paragraphs (b)(3) and (4) as (b)(2) and
(3), respectively.
■ 4. In § 800.18, revise paragraph (b)(7)
to read as follows:
■
§ 800.18 Waivers of the official inspection
and Class X weighing requirements.
*
*
*
*
*
(b) * * *
(7) Emergency waiver. (i) Upon
request, the requirements for official
inspection or Class X weighing will be
waived whenever the Service
determines that an emergency exists
that precludes official inspection or
Class X weighing;
(ii) To qualify for an emergency
waiver, the exporter or elevator operator
must submit a timely written request to
the Service for the emergency waiver
and also comply with all conditions that
the Service may require.
*
*
*
*
*
■ 5. Revise § 800.71 to read as follows.
§ 800.71
Fees assessed by the Service.
(a) Official inspection and weighing
services. The fees shown in Schedule A
of paragraph (a)(1) of this section apply
to official inspection and weighing
services performed by FGIS in the U.S.
and Canada. The fees shown in
Schedule B of paragraph (a)(2) of this
section apply to official domestic
inspection and weighing services
performed by delegated States and
designated agencies, including land
carrier shipments to Canada and
Mexico. The fees charged to delegated
States by the Service are set forth in the
State’s Delegation of Authority
document. Failure of a delegated State
or designated agency to pay the
appropriate fees to the Service within 30
days after becoming due will result in
an automatic termination of the
delegation or designation. The
delegation or designation may be
reinstated by the Service if fees that are
due, plus interest and any further
expenses incurred by the Service
because of the termination, are paid
within 60 days of the termination.
(1) Schedule A—Fees for official
inspection and weighing services
performed in the United States and
Canada, effective October 1, 2015.
Canada fees include the noncontract
hourly rate, the Toledo Field Office
tonnage fee, and the actual cost of
travel.
TABLE 1 OF SCHEDULE A—FEES FOR OFFICIAL SERVICES PERFORMED AT AN APPLICANT’S FACILITY IN AN ONSITE FGIS
LABORATORY 1
asabaliauskas on DSK3SPTVN1PROD with RULES
Monday to
Friday
(6 a.m. to 6
p.m.)
(i) Inspection and Weighing Services Hourly Rates (per service representative):
1-year contract ($ per hour) .....................................................................
Noncontract ($ per hour) ..........................................................................
(ii) Additional Tests (cost per test, assessed in addition to the hourly rate): 3
(A) Aflatoxin (rapid test kit method) ..........................................................
(B) Aflatoxin (rapid test kit method-applicant provides kit) 4 ....................
(C) All other Mycotoxins (rapid test kit method) .......................................
(D) All other Mycotoxins (rapid test kit method-applicant provides kit) 4
(E) NIR or NMR Analysis (protein, oil, starch, etc.) .................................
(F) Waxy corn (per test) ...........................................................................
(G) Fees for other tests not listed above will be based on the lowest
noncontract hourly rate
(H) Other services
(1) Class Y Weighing (per carrier):
(i) Truck/container ......................................................................
(ii) Railcar ...................................................................................
(iii) Barge ....................................................................................
(iii) Tonnage Fee (assessed in addition to all other applicable fees, only one
tonnage fee will be assessed when inspection and weighing services are
performed on the same carrier):
(A) All outbound carriers serviced by the specific Field Office (per-metric ton):
(1) League City ..................................................................................
(2) New Orleans ................................................................................
(3) Portland ........................................................................................
(4) Toledo ..........................................................................................
(5) Delegated States 5 .......................................................................
(6) Designated Agencies 5 .................................................................
Monday to
Friday
(6 p.m. to 6
a.m.)
Saturday,
Sunday, and
overtime 2
Holidays
$40.20
71.40
$42.10
71.40
$48.20
71.40
$71.40
71.40
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
11.40
9.40
20.80
18.80
2.70
2.70
........................
........................
........................
........................
........................
........................
........................
........................
........................
0.70
1.70
3.00
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
........................
0.192
0.094
0.191
0.306
0.061
0.061
1 Fees apply to original inspection and weighing, re-inspection, and appeal inspection service and include, but are not limited to, sampling,
grading, weighing, prior to loading stowage examinations, and certifying results performed within 25 miles of an employee’s assigned duty station. Travel and related expenses will be charged for service outside 25 miles as found in § 800.72(a).
2 Overtime rates will be assessed for all hours in excess of 8 consecutive hours that result from an applicant scheduling or requesting service
beyond 8 hours, or if requests for additional shifts exceed existing staffing.
3 Appeal and re-inspection services will be assessed the same fee as the original inspection service.
4 Applicant must provide the test kit, instrument hardware, calibration control, and all supplies required by the test kit manufacturer.
5 Tonnage fee is assessed on export grain inspected and/or weighed, excluding land carrier shipments to Canada and Mexico.
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TABLE 2 OF SCHEDULE A—SERVICES PERFORMED AT OTHER THAN AN APPLICANT’S FACILITY IN AN FGIS
LABORATORY 1 2
asabaliauskas on DSK3SPTVN1PROD with RULES
(i) Original Inspection and Weighing (Class X) Services:
(A) Sampling only (use hourly rates from Table 1 of this section)
(B) Stationary lots (sampling, grade/factor, & checkloading):
(1) Truck/trailer/container (per carrier) ..................................................................................................................................
(2) Railcar (per carrier) ..........................................................................................................................................................
(3) Barge (per carrier) ...........................................................................................................................................................
(4) Sacked grain (per hour per service representative plus an administrative fee per hundredweight) (CWT) ..................
(C) Lots sampled online during loading (sampling charge under (1)(i) of this table, plus):
(1) Truck/trailer container (per carrier) ..................................................................................................................................
(2) Railcar (per carrier) ..........................................................................................................................................................
(3) Barge (per carrier) ...........................................................................................................................................................
(4) Sacked grain (per hour per service representative plus an administrative fee per hundredweight) (CWT) ..................
(D) Other services:
(1) Submitted sample (per sample—grade and factor) ........................................................................................................
(2) Warehouseman inspection (per sample) .........................................................................................................................
(3) Factor only (per factor—maximum 2 factors) ..................................................................................................................
(4) Checkloading/condition examination (use hourly rates from Table 1 of this section, plus an administrative fee per
hundredweight if not previously assessed) (CWT) ...........................................................................................................
(5) Re-inspection (grade and factor only. Sampling service additional, item (1)(i) of this table) .........................................
(6) Class X Weighing (per hour per service representative) ................................................................................................
(E) Additional tests (excludes sampling):
(1) Aflatoxin (rapid test kit method) .......................................................................................................................................
(2) Aflatoxin (rapid test kit method—applicant provides kit) 3 ...............................................................................................
(3) All other Mycotoxins (rapid test kit method) ....................................................................................................................
(4) All other Mycotoxins (rapid test kit method—applicant provides kit) 3 ............................................................................
(5) NIR or NMR Analysis (protein, oil, starch, etc.) ..............................................................................................................
(6) Waxy corn (per test) ........................................................................................................................................................
(7) Canola (per test-00 dip test) ............................................................................................................................................
(8) Pesticide Residue Testing: 4
(i) Routine Compounds (per sample) ............................................................................................................................
(ii) Special Compounds (Subject to availability) ............................................................................................................
(9) Fees for other tests not listed above will be based on the lowest noncontract hourly rate from Table 1 of this section.
(ii) Appeal inspection and review of weighing service 5
(A) Board Appeals and Appeals (grade and factor)
(1) Factor only (per factor—max 2 factors) ..........................................................................................................................
(2) Sampling service for Appeals additional (hourly rates from Table 1 of this section).
(B) Additional tests (assessed in addition to all other applicable tests):
(1) Aflatoxin (rapid test kit method) .......................................................................................................................................
(2) Aflatoxin (rapid test kit method—applicant provides kit) 3 ...............................................................................................
(3) All other Mycotoxins (rapid test kit method) ....................................................................................................................
(4) All other Mycotoxins (rapid test kit method—applicant provides kit) 3 ............................................................................
(5) NIR or NMR Analysis (protein, oil, starch, etc.) ..............................................................................................................
(6) Sunflower oil (per test) ....................................................................................................................................................
(7) Mycotoxin (per test-HPLC) ..............................................................................................................................................
(8) Pesticide Residue Testing: 4
(i) Routine Compounds (per sample) ............................................................................................................................
(ii) Special Compounds (Subject to availability) ............................................................................................................
(9) Fees for other tests not listed above will be based on the lowest noncontract hourly rate from Table 1 of this section.
(C) Review of weighing (per hour per service representative) ....................................................................................................
(iii) Stowage examination (service-on-request): 4
(A) Ship (per stowage space) (minimum $285.00 per ship) ........................................................................................................
(B) Subsequent ship examinations (same as original) (minimum $171.00 per ship) ..................................................................
(C) Barge (per examination) .........................................................................................................................................................
(D) All other carriers (per examination) ........................................................................................................................................
$22.50
33.30
209.10
0.08
13.50
28.10
143.00
0.08
13.50
23.60
6.60
0.08
14.60
71.40
33.60
31.60
43.20
41.20
11.40
11.40
11.40
240.90
128.40
91.50
48.20
33.60
31.60
52.60
50.60
19.80
19.80
157.30
240.90
128.40
92.30
57.00
57.00
45.80
18.00
1 Fees apply to original inspection and weighing, re-inspection, and appeal inspection service and include, but are not limited to, sampling,
grading, weighing, prior to loading stowage examinations, and certifying results performed within 25 miles of an employee’s assigned duty station. Travel and related expenses will be charged for service outside 25 miles as found in § 800.72(a).
2 An additional charge will be assessed when the revenue from the services in Schedule A, Table 2, does not cover what would have been collected at the applicable hourly rate as provided in § 800.72(b).
3 Applicant must provide the test kit, instrument hardware, calibration control, and all supplies required by the test kit manufacturer.
4 If performed outside of normal business, 11⁄2 times the applicable unit fee will be charged.
5 If, at the request of the Service, a file sample is located and forwarded by the Agency, the Agency may, upon request, be reimbursed at the
rate of $3.50 per sample by the Service.
TABLE 3 OF SCHEDULE A—MISCELLANEOUS SERVICES 1
(i) Grain grading seminars (per hour per service representative) 2 ..............................................................................................
(ii) Certification of diverter-type mechanical samplers (per hour per service representative) 2 ...................................................
(iii) Special weighing services (per hour per service representative): 2
(A) Scale testing and certification ..........................................................................................................................................
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$71.40
71.40
92.90
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TABLE 3 OF SCHEDULE A—MISCELLANEOUS SERVICES 1—Continued
(B) Scale testing and certification of railroad track scales ....................................................................................................
(C) Evaluation of weighing and material handling systems ..................................................................................................
(D) NTEP Prototype evaluation (other than Railroad Track Scales) ....................................................................................
(E) NTEP Prototype evaluation of Railroad Track Scale ......................................................................................................
(F) Use of GIPSA railroad track scale test equipment per facility for each requested service. (Track scales tested under
the Association of American Railroads agreement are exempt.)
(G) Mass standards calibration and re-verification ................................................................................................................
(H) Special projects ...............................................................................................................................................................
(iv) Foreign travel (hourly fee) 3 ....................................................................................................................................................
(v) Online customized data service:
(A) One data file per week for 1 year ....................................................................................................................................
(B) One data file per month for 1 year ..................................................................................................................................
(vi) Samples provided to interested parties (per sample) ............................................................................................................
(vii) Divided-lot certificates (per certificate) ...................................................................................................................................
(viii) Extra copies of certificates (per certificate) ...........................................................................................................................
(ix) Faxing (per page) ...................................................................................................................................................................
(x) Special mailing .........................................................................................................................................................................
(xi) Preparing certificates onsite or during other than normal business hours (use hourly rates from Table 1).
92.90
92.90
92.90
92.90
557.30
92.90
92.90
92.90
557.30
334.40
3.50
2.20
2.20
2.20
Actual Cost.
1
Any requested service that is not listed will be performed at $71.40 per hour.
Regular business hours—Monday through Friday—service provided at other than regular business hours will be charged at 11/2 times the
applicable hourly rate. (See the definition of ‘‘business day’’ in § 800.0(b))
3 Foreign travel charged hourly fee of $92.90 plus travel, per diem, and related expenditures.
asabaliauskas on DSK3SPTVN1PROD with RULES
2
(2) Schedule B—Fees for FGIS
Supervision of Official Inspection and
Weighing Services Performed by
Delegated States and/or Designated
Agencies in the United States. The
supervision fee charged by the Service
is $0.011 per metric ton of domestic
U.S. grain shipments inspected and/or
weighed, including land carrier
shipments to Canada and Mexico.
(b) Annual review of fees. For each
calendar year, starting with 2017, the
Service will review the fees in Schedule
A in paragraph (a)(1) of this section and
publish fees effective January 1 of each
year according to the following:
(1) Tonnage fees. Tonnage fees will
consist of the national tonnage fee and
local tonnage fees and will be calculated
and rounded to the nearest $0.001 per
metric ton. All outbound grain officially
inspected and/or weighed by the Field
Offices in New Orleans, League City,
Portland, and Toledo will be assessed
the national tonnage fee plus the
appropriate local tonnage fee. Export
grain officially inspected and/or
weighed by delegated States and official
agencies, excluding land carrier
shipments to Canada and Mexico, will
be assessed the national tonnage fee
only. The fees will be set according to
the following:
(i) National tonnage fee. The national
tonnage fee is the national program
administrative costs for the previous
fiscal year divided by the average yearly
tons of export grain officially inspected
and/or weighed by delegated States and
designated agencies, excluding land
carrier shipments to Canada and
Mexico, and outbound grain officially
inspected and/or weighed by the
Service during the previous 5 fiscal
years.
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(ii) Local tonnage fee. The local
tonnage fee is the Field Office
administrative costs for the previous
fiscal year divided by the average yearly
tons of outbound grain officially
inspected and/or weighed by the Field
Office during the previous 5 fiscal years.
The local tonnage fee is calculated
individually for each Field Office.
(2) Operating reserve. In order to
maintain an operating reserve not less
than 3 and not more than 6 months, the
Service will review the value of the
operating reserve at the end of each
fiscal year and adjust fees according to
the following:
(i) Less than 4.5 months. If the
operating reserve is less than 4.5 times
the monthly operating expenses, the
Service will increase all fees in
Schedule A in paragraph (a)(1) of this
section by 2 percent for each
$1,000,000, rounded down, that the
operating reserve is less than 4.5 times
the monthly operating expense, with a
maximum increase of 5 percent
annually. Except for fees based on
tonnage or hundredweight, all fees will
be rounded to the nearest $0.10.
(ii) Greater than 4.5 months. If the
operating reserve is greater than 4.5
times the monthly operating expenses,
the Service will decrease all fees in
Schedule A in paragraph (a)(1) of this
section by 2 percent for each
$1,000,000, rounded down, that the
operating reserve is greater than 4.5
times the monthly operating expense,
with a maximum decrease of 5 percent
annually. Except for fees based on
tonnage or hundredweight, all fees will
be rounded to the nearest $0.10.
(c) Periodic review. The Service will
periodically review and adjust all fees
in Schedules A and B in paragraphs
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(a)(1) and (2) of this section,
respectively, as necessary to ensure they
reflect the true cost of providing and
supervising official service. This process
will incorporate any fee adjustments
from paragraph (b) of this section.
(d) Miscellaneous fees for other
services—(1) Registration certificates
and renewals. (i) The nature of your
business will determine the fees that
your business must pay for registration
certificates and renewals:
(A) If you operate a business that
buys, handles, weighs, or transports
grain for sale in foreign commerce, you
must pay $135.00.
(B) If you operate a business that
buys, handles, weighs, or transports
grain for sale in foreign commerce and
you are also in a control relationship
(see definition in section 17A(b)(2) of
the Act) with respect to a business that
buys, handles, weighs, or transports
grain for sale in interstate commerce,
you must pay $270.00.
(ii) If you request extra copies of
registration certificates, you must pay
$2.20 for each copy.
(2) Designation amendments. If you
submit an application to amend a
designation, you must pay $75.00.
(3) Scale testing organizations. If you
submit an application to operate as a
scale testing organization, you must pay
$250.00.
§ 800.72
[Amended]
6. In § 800.72(b), remove the reference
‘‘§ 800.71’’ from the first sentence and
add in its place the reference
‘‘§ 800.71(a)(1).’’
■ 7. Amend § 800.117 by removing
paragraph (b)(2), redesignating
paragraph (b)(3) as (b)(2), and adding a
new paragraph (b)(3) to read as follows:
■
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§ 800.117
services.
Who shall perform original
(e)(2)(iv), and revise paragraph (h)(1)(i)
to read as follows:
*
*
*
*
*
(b) * * *
(3) Written agreement. If the assigned
official agency agrees in writing with
the adjacent official agency to waive the
current geographic area restriction at the
request of the applicant for service, the
adjacent official agency may provide
service at a particular location upon
providing written notice to the Service,
and the Service determines that the
written agreement conforms to the
provisions in the Act.
*
*
*
*
*
■ 8. In § 800.175, revise paragraph (a) to
read as follows:
§ 800.175
Termination of licenses.
(a) Term of license. Each license shall
terminate in accordance with the
termination date shown on the license
and as specified in paragraph (b) of this
section. The termination date for a
license shall be no less than 5 years or
more than 6 years after the issuance date
for the initial license; thereafter, every 5
years. Upon request of a licensee and for
good cause shown, the termination date
may be advanced or delayed by the
Administrator for a period not to exceed
60 days.
*
*
*
*
*
■ 9. In § 800.195, add paragraphs (f)(11)
and (g)(4) to read as follows:
§ 800.195
Delegations.
asabaliauskas on DSK3SPTVN1PROD with RULES
*
*
*
*
*
(f) * * *
(11) Notification to Secretary. A
delegated State shall notify the
Secretary of its intention to temporarily
discontinue official inspection and/or
weighing services for any reason, except
in the case of a major disaster. The
delegated State must provide written
notification to the Service no less than
72 hours in advance of the
discontinuation date.
*
*
*
*
*
(g) * * *
(4) Review. At least once every 5
years, a delegated State shall submit to
a review of its delegation by the Service
in accordance with the criteria and
procedures for delegation prescribed in
section 7(e) of the Act, this section of
the regulations, and the instructions.
The Administrator may revoke the
delegation of a State according to this
subsection if the State fails to meet or
comply with any of the criteria for
delegation set forth in the Act,
regulations, and instructions.
*
*
*
*
*
■ 10. In § 800.196, revise paragraphs
(e)(2)(ii) and (iii), add paragraph
VerDate Sep<11>2014
17:04 Jul 28, 2016
Jkt 238001
49863
NUCLEAR REGULATORY
COMMISSION
§ 800.196
10 CFR Parts 20, 26, 32, 40, 50, 53, 73,
74, and 150
Designations.
*
*
*
*
*
(e) * * *
(2) * * *
(ii) The applicant meets the
conditions and criteria specified in the
Act and regulations;
(iii) The applicant is better able than
any other applicant to provide official
services; and
(iv) The applicant addresses concerns
identified during consultations that the
Service conducts with applicants for
service to the satisfaction of the Service.
*
*
*
*
*
(h) Termination and renewal—(1)
Every 5 years—(i) Termination. A
designation shall terminate at a time
specified by the Administrator, but not
later than 5 years after the effective date
of the designation. A notice of
termination shall be issued by the
Service to a designated agency at least
120 calendar days in advance of the
termination date. The notice shall
provide instructions for requesting
renewal of the designation. Failure to
receive a notice from the Service shall
not exempt a designated agency from
the responsibility of having its
designation renewed on or before the
specified termination date.
*
*
*
*
*
11. In § 800.216, revise paragraph (c)
to read as follows:
■
§ 800.216 Activities that shall be
monitored.
*
*
*
*
*
(c) Grain handling activities. Grain
handling activities subject to monitoring
for compliance with the Act include,
but are not limited to:
(1) Shipping export grain without
inspection or weighing;
(2) Violating any Federal law with
respect to the handling, weighing, or
inspection of grain;
(3) Deceptively loading, handling,
weighing, or sampling grain; and
(4) Exporting grain without a
certificate of registration.
*
*
*
*
*
Larry Mitchell,
Administrator, Grain Inspection, Packers and
Stockyards Administration.
[FR Doc. 2016–17762 Filed 7–28–16; 8:45 am]
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[NRC–1999–0002, NRC–2001–0012, NRC–
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0079]
RIN 3150–AH18; 3150–AG89; 3150–AG64;
3150–AH81; 3150–AI29; 3150–AI68; 3150–
AI50
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ACTION: Rulemaking activities;
discontinuation.
AGENCY:
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Agencies
[Federal Register Volume 81, Number 146 (Friday, July 29, 2016)]
[Rules and Regulations]
[Pages 49855-49863]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-17762]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
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Federal Register / Vol. 81, No. 146 / Friday, July 29, 2016 / Rules
and Regulations
[[Page 49855]]
DEPARTMENT OF AGRICULTURE
Grain Inspection, Packers and Stockyards Administration
7 CFR Part 800
RIN 0580-AB24
Reauthorization of the United States Grain Standards Act
AGENCY: Grain Inspection Packers and Stockyards Administration, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Department of Agriculture (USDA) Grain Inspection, Packers
and Stockyards Administration (GIPSA) is revising existing regulations
and adding new regulations under the United States Grain Standards Act
(USGSA), as amended, in order to comply with amendments to the USGSA
made by the Agriculture Reauthorizations Act of 2015. Specifically,
this rulemaking eliminates mandatory barge weighing, removes the
discretion for emergency waivers of inspection and weighing, revises
GIPSA's fee structure, revises exceptions to official agency geographic
boundaries, extends the length of licenses and designations, and
imposes new requirements for delegated States.
DATES: Effective July 29, 2016.
FOR FURTHER INFORMATION CONTACT: Barry Gomoll, 202-720-8286.
Persons with disabilities who require alternative means for
communication (Braille, large print, audio tape, etc.) should contact
the USDA Target Center at (202) 720-2600 (voice and TDD).
SUPPLEMENTARY INFORMATION:
Overview
On September 30, 2015, President Obama signed into law the
Agriculture Reauthorizations Act of 2015, Public Law 114-54 (The
Reauthorization Act). In addition to extending certain provisions of
the USGSA (7 U.S.C. 71-87k) to 2020, the Reauthorization Act also made
several changes to the existing law. Therefore, GIPSA issued a proposed
rule in the Federal Register to amend 7 CFR part 800 to comply with the
amendments made by the Reauthorization Act and solicited comments from
interested parties (81 FR 3970). Specifically, GIPSA proposed to:
Remove the requirement to officially weigh inbound barge
shipments at export port locations (Sec. 800.15 and Sec. 800.216);
approve requests for waivers of official inspection and
weighing requirements for export grain in ``emergencies or other
circumstances that would not impair the objectives of the [USGSA]
whenever the parties to a contract for such shipment mutually agree to
the waiver and documentation of such agreement is provided to the
Secretary prior to shipment'' (Sec. 800.18);
base the portion of fees assessed on tonnage on the 5-year
rolling average of export tonnage volume (Sec. 800.71);
adjust fees annually to maintain a 3 to 6 month operating
reserve for inspection and supervision services (Sec. 800.71);
remove the provision that allows applicants to request
service from an official agency outside an assigned geographic region
after 90 days of nonuse of service (Sec. 800.117);
waive the geographic boundaries established for official
agencies between two adjacent official agencies if both official
agencies agree in writing to the waiver (Sec. 800.117);
without changing current termination dates, terminate
inspection licenses every 5 years instead of every 3 years (Sec.
800.175);
require delegated States to notify GIPSA of any intent to
temporarily discontinue official inspection or weighing services at
least 72 hours in advance, except in the case of a major disaster
(Sec. 800.195);
review delegated states every 5 years and certify that
they comply with the requirements for delegation under the USGSA (Sec.
800.195);
require designated official agencies to respond to
concerns identified during GIPSA's consultations with customers as part
of the renewal of a designation (Sec. 800.196); and
extend the minimum length of designation for official
agencies from 3 years to 5 years (Sec. 800.196).
Fees
GIPSA last made changes to its fee schedule on May 1, 2013 (78 FR
22151-66). At that time, GIPSA determined that the existing fee
schedule for inspection and weighing services would not generate
sufficient revenue to adequately cover program costs through fiscal
year 2017. To correct this problem and to build an operating reserve,
GIPSA increased fees by 5 percent in fiscal year 2013 and an additional
2 percent for each successive year through fiscal year 2017.
In addition, GIPSA restructured its tonnage fees to more accurately
reflect the administrative and supervisory costs at the national and
local level. In order to establish an equitable tonnage fee for all
export tonnage utilizing the official system, GIPSA began assessing the
national tonnage fee on all export grain inspected and/or weighed
(excluding land carrier shipments to Canada and Mexico) by delegated
States and designated agencies. GIPSA also shifted workers compensation
costs from the national to the local level to fully reflect where those
workers compensation costs originated.
Prior to the Reauthorization Act, GIPSA used projected future
tonnage volumes as a basis to calculate tonnage fees. The
Reauthorization Act amended the USGSA to require that tonnage fees be
based on the five-year rolling average of export tonnage volumes. In
order to comply with this new tonnage fee requirement, GIPSA proposed
to adjust both the national and local tonnage fees on a yearly basis.
GIPSA proposed that the national tonnage fee would be the national
program administrative costs (the costs of management and support of
official inspection and weighing) for the previous fiscal year divided
by the average export tonnage for the previous 5 fiscal years. Also,
the local tonnage fees would be the Field Office administrative costs
(the costs of management, support, and maintenance of each Field
Office) for the previous fiscal year divided by the average tonnage
serviced by that Field Office for the previous 5 fiscal years.
The Reauthorization Act further requires adjustment of all of
GIPSA's fees for the performance, supervision, and administration of
official inspection and weighing services at least annually to maintain
a 3 to 6 month operating reserve. Given that the number of
[[Page 49856]]
requests for official inspection and weighing services varies with the
amount of grain produced and exported from year to year, an operating
reserve allows funding of operations in periods during which revenue
may not equal or exceed costs. In order to maintain an appropriate
level of operating reserve, GIPSA proposed to increase or decrease
inspection and weighing fees when the operating reserve is less than 3
times or more than 6 times monthly operating expenses. For each $1
million that the operating reserve is below 3 months or above 6 months
of the operating expenses, GIPSA would increase or decrease fees by 2
percent, respectively. GIPSA also proposed to set a 5 percent limit on
changes to fees for service per calendar year. GIPSA's annual user fee
revenue for performance, supervision, and administration of official
inspection and weighing is approximately $40 million. Therefore, an
increase or decrease of 2 to 5 percent would approximately equal
between $0.8 and $2 million annually.
In addition to these annual reviews of fees, GIPSA will continue to
evaluate the financial status of the official inspection and weighing
services to ensure that the revenue for each service covers the cost to
GIPSA of providing that service. Also, GIPSA will continue to seek out
cost saving measures and implement appropriate changes to reduce costs
and minimize the need for fee increases.
This action is authorized under the USGSA (7 U.S.C. 79(j)), which
provides for the establishment and collection of fees that are
reasonable and, as nearly as practicable, cover the costs of the
services rendered, including associated administrative and supervisory
costs. The tonnage fees cover the GIPSA administrative and supervisory
costs for the performance of GIPSA's official inspection and weighing
services; including personnel compensation and benefits, travel, rent,
communications, utilities, contractual services, supplies, and
equipment.
Exceptions to Geographic Boundaries
The Reauthorization Act requires changes to GIPSA's exception
program for official agencies to operate outside of their
geographically assigned areas. Prior to the Reauthorization Act, the
regulations provided for three types of exceptions: Timely service,
nonuse of service for 90 consecutive days, and barge probe inspections.
The Reauthorization Act amended the USGSA to eliminate the nonuse of
service exception and add a provision for geographically adjacent
agencies to provide service in each other's assigned geographic
territories at an applicant's request if both agencies agree in
writing. GIPSA proposed to revise the current regulations to comply
with the changes to the USGSA by the Reauthorization Act.
GIPSA currently has 95 agreements for agencies to operate outside
of their assigned territories and GIPSA will continue to honor those
agreements. Under GIPSA's proposed rule, an agency would be permitted
to provide service at a location in another adjacent agency's
territory, provided that both agencies and the applicant for service
submit an agreement in writing to GIPSA.
Delegations
As required by the Reauthorization Act, GIPSA proposed to impose
new requirements on State agencies that GIPSA delegates to perform
export inspection and weighing services at export port locations under
the USGSA. The Reauthorization Act requires the Secretary to certify
that State agencies continue to meet statutory requirements.
Accordingly, GIPSA will review each delegated state every 5 years to
determine that it meets the criteria for delegation set forth in the
USGSA. GIPSA proposed to implement a process mirroring the existing
process that GIPSA uses to renew the designations of official agencies.
The Reauthorization Act also requires that a delegated State must
notify GIPSA in writing of any intent to discontinue providing official
service at least 72 hours prior to discontinuation. GIPSA proposed to
add this requirement to the section of the regulations concerning
responsibilities of delegated States (7 CFR 800.195(f)).
Emergency Waivers
The Reauthorization Act amended the USGSA (7 U.S.C 77(a)(1)) to
state, ``The Secretary shall waive the foregoing requirement [that all
grain exported from the U.S. be officially inspected and weighed] in
emergency or other circumstances that would not impair the objectives
of this chapter whenever the parties to a contract for such shipment
mutually agree to the waiver and documentation of such agreement is
provided to the Secretary prior to shipment.'' This change to the USGSA
substituted the word ``shall'' in place of the former word ``may,''
indicating that GIPSA no longer has discretion to approve waivers of
official inspection and weighing requirements in emergencies. For this
reason, GIPSA determined that it is important to clarify what
constitutes an emergency.
In the proposed rule, GIPSA proposed to define the term
``emergency'' in 7 CFR 800.00 as ``a situation outside the control of
the Service or a delegated State that prevents prompt issuance of
certificates in accordance with Sec. 800.160(c).'' The proposed rule
linked the definition of ``emergency'' to the timely issuance of
certificates. Upon further reflection, linking waivers to certification
does not cover situations where no service is provided. Certificates
would never be issued in circumstances where no official inspection or
weighing occurs. Accordingly, GIPSA is revising the definition of
``emergency'' from the proposed rule to more closely tie emergency
situations to the ability of GIPSA or a delegated State to provide
official services in a timely manner when requested. The issuance of
certificates, as described in 7 CFR 800.160(c), provides that a
certificate must be issued by the close of business on the next
business day after inspection or weighting. The proposed regulation
incorporated that time period. Currently, 7 CFR 800.18(b)(6) provides a
24-hour period for granting a waiver for circumstances in which service
is not available. Because GIPSA is no longer linking emergency waivers
with only the issuance of certificates in 800.160(c), GIPSA has decided
to set the determination for emergency waivers based on this same time
frame as 800.18(b)(6).
Timely service delivery ensures that GIPSA will continue to
facilitate the marketing of cereals and oilseeds and issue certificates
in accordance with the regulations. To that end, the emergency waiver
provisions provide a mechanism for grain shipments to continue in a
situation that prevents service delivery within 24 hours of the
scheduled service time.
Comment Review
GIPSA received nine comments in response to the proposed rule
published January 25, 2016, in the Federal Register (81 FR 3970). One
comment was a request for extension of the comment period, which GIPSA
granted on February 24, 2016 (81 FR 9122). Two grain industry
associations submitted a joint comment, which was supported by an
additional submission from several other grain industry associations.
Other comments were submitted by an association of official inspection
agencies, a farm organization, a grain elevator operator, and two
private individuals, one of whom submitted two separate comments. Two
of the eight comments concerned quinoa and rice standards, commodities
which are not covered under the USGSA and this rulemaking. All comments
were
[[Page 49857]]
supportive of the proposed rule, with some suggested changes to the
proposed regulations. Suggestions are addressed below in the order they
appear in the regulations.
Emergency Waivers (7 CFR 800.0 and 18)
Several commenters suggested changes to GIPSA's proposed definition
of the term ``emergency.'' The grain industry associations suggested
that GIPSA remove the terms ``outside of the control of the Service or
a delegated State'' from the definition. They felt this would allow
GIPSA to use excuses to avoid issuing emergency waivers. The farm
organization commented that waivers of official inspection and
weighing, even in emergency situations, could impair the objectives of
the USGSA. They suggested that GIPSA define ``emergency,'' as narrowly
as possible.
GIPSA notes that the intent of Congress in changing the language of
the USGSA is to remove the Secretary's discretionary authority to deny
emergency waivers. But, GIPSA does not agree with the industry
associations' comment that GIPSA does not have the authority to define
the term through the rulemaking process. Without a concrete definition,
what constitutes an emergency is ambiguous and requires clarification.
For example, the industry associations' suggestion that any
situation that prevents service should constitute an emergency is far
too broad. This suggestion makes possible ``emergency'' situations in
cases where the applicant or other interested party could have
otherwise taken steps to allow official inspection or weighing to
occur. GIPSA does agree, however, with the industry associations'
comment that whether the situation is under the control of GIPSA should
not matter for determining an emergency. But, GIPSA also agrees with
the farm organization's comment that excessive waivers could impair the
USGSA as they allow grain to be exported from the U.S. without official
inspection or weighing.
Therefore, GIPSA finds it important to define ``emergency'' in the
regulations to prevent future confusion over what does and does not
constitute an emergency. GIPSA is adopting a definition of
``emergency'' to describe situations outside of the control of the
applicant for service, as defined in the regulations. Under this
definition, applicants would still be responsible for complying with
the requirements for obtaining official service listed in 7 CFR 800.46.
Waivers for Other Circumstances (7 CFR 800.18)
The industry associations and farm organization both addressed the
issuance of waivers in circumstances other than emergencies. The
industry associations point out that the language of the USGSA provides
for mandatory waivers in instances other than emergencies for ``other
circumstances that would not impair the objectives of the USGSA when
the buyer and seller agree to waive official inspection and weighing
requirements.'' The associations requested that GIPSA revise the
language in 7 CFR 800.18(b)(7)(A) and (B) to be inclusive of this. The
associations contend that waivers must be granted regardless of whether
an ``emergency'' exists. The farm organization maintains that by
allowing grain to ship without certification of quality or quantity,
waivers impair the objectives of the USGSA and should not be granted in
non-emergency situations.
7 CFR 800.18 provides for two categories of waivers: (1) Emergency
and (2) other circumstances that do not impair the objectives of the
USGSA. The Reauthorization Act removed GIPSA's discretionary authority
to approve such waivers but added to the second category the condition
that the parties to a contract must mutually agree to the waiver and
provide documentation to GIPSA. The proposed rule incorporated portions
of this language in 7 CFR 800.18, but review of the comments showed
that this interpretation would be misconstrued to connect ``emergency
waivers'' with the ``other circumstances'' waivers.
In the Congressional findings and declaration of policy (7 U.S.C.
74), the objectives of the USGSA include ``that grain may be marketed
in an orderly and timely manner and that trading in grain may be
facilitated'' and ``that the primary objective of the official United
States standards for grain is to certify the quality of grain as
accurately as practicable.''
GIPSA already provides for waivers in ``other circumstances that
would not impair objectives of [the USGSA]'' in 7 CFR 800.18. GIPSA
provides waivers for: Elevators that ship fewer than 15,000 metric tons
in a calendar year, grain exported for seeding purposes, grain shipped
in bond, grain exported by rail or truck to Canada or Mexico, grain not
sold by grade (7 U.S.C. 77 provides for this specific category of
waiver), service not available, and high quality specialty grain
shipped in containers. GIPSA has determined that these circumstances,
as described in the regulations, do not impair the objectives of the
USGSA and that granting them helps facilitate the marketing of U.S.
grain. GIPSA has historically used the notice-and-comment process of
the Federal Register to determine which circumstances do not impair the
objectives of the USGSA. Soliciting public opinion is the best method
for determining other classes of waivers that do not impair the
objectives of the USGSA. GIPSA agrees with the farm organization that
waivers run counter to the objective of certifying grain as accurately
as practicable and that excessive waivers would lead to a loss of
confidence in U.S. exports. Provided that parties reach mutual
agreement and provide notice to GIPSA, the amended USGSA requires GIPSA
to consider what other circumstances for waivers would not impair the
objectives of the USGSA. Additional general regulation is not required.
For these reasons, GIPSA is omitting the proposed sections
800.118(b)(7)(B) & (C) from the final rule and is not adding a new
blanket category of waivers for situations in which the buyer and
seller agree to waive official inspection or Class X weighing.
Fees for Official Inspection and Weighing (7 CFR 800.71)
The grain industry associations recommend that GIPSA use the
midpoint of the 3 to 6 month reserve figure as the determination of
when fees are to be adjusted. They suggest that fees should be raised
or lowered based on whether they exceed or fall below 4.5 months
reserve. They agreed with GIPSA's proposal of 2 percent increase per $1
million above or below the target amount, though they disagreed with
GIPSA's proposal of a 5 percent limit per year on increases or
decreases and suggested there be no limit.
GIPSA agrees with the recommendation of setting the trigger for
adjusting fees at the midpoint of 4.5 months reserve. This target
should better help GIPSA to maintain a 3 to 6 month operating reserve.
GIPSA disagrees with the grain industry associations' suggestion that
there be no limit. GIPSA believes that a yearly limit on fee increases
and decreases is necessary to provide a more stable fee structure from
year to year, which affects all sectors of the industry. While a large
decrease would likely be welcomed by producers, marketers, and
consumers, GIPSA believes that the possibility of a large increase in
future years would be untenable to these same groups. In the April 15,
2013, fee rule (78 FR 22151), GIPSA increased fees by 5 percent in the
first year and by 2 percent in each ensuing year, in order
[[Page 49858]]
to minimize the impact of a large increase. GIPSA feels that the annual
5 percent cap follows this precedent of minimizing the impact of large
fee changes. Moreover, if the monthly operating reserve falls outside
the 3 to 6 month reserve by an amount that cannot be adjusted by the
automatic corrections established in this regulation, then GIPSA will
reconsider the fees through additional rulemaking.
The grain industry associations recommended that GIPSA suspend the
fee for supervision of official agency inspection and weighing, which
GIPSA has done with a notice in the June 28, 2016, edition of the
Federal Register (81 FR 41790). Their recommendations for changes to
fees for rice and commodity inspections fall outside the scope of this
rulemaking.
The grain industry associations recommended that GIPSA perform
annual reviews of all fees in Schedule A of 7 CFR 800.71 in order to
keep them in balance with each other. GIPSA currently conducts such a
review approximately every five years. GIPSA proposed adding language
to the regulations declaring its intent to continue periodic reviews.
These reviews are intended to ensure that the fees for service are
closely aligned with GIPSA's costs to provide these services. These
reviews, along with departmental approval, comment solicitation, and
comment review are often lengthy and costly processes. Because the
automatic increases and decreases of all fees should maintain a 3 to 6
month operating reserve, GIPSA believes a complete review of fees every
year would impose unnecessary time and money costs that would exceed
any potential gain to stakeholders.
The grain industry associations recommended that GIPSA perform an
annual review of expenses and work to bring those expenses down. They
also mentioned that GIPSA should publish financial data for the
preceding fiscal year by the beginning of the ensuing calendar year.
GIPSA is aware that the export grain industry is highly competitive
and operates on slim margins. Accordingly, GIPSA takes measures to
reduce costs whenever possible. In the recent past, GIPSA reduced cost
by taking advantage of employee attrition to not fill positions after
retirement, using intermittent and seasonal employees in export
offices, and using alternative work schedules in order to reduce
employee overtime hours. GIPSA publishes extensive financial data in
its annual report to Congress. Additionally, GIPSA has made and will
continue to make financial information available on its public Web site
prior to the release of the annual report to Congress.
Geographic Boundary Exceptions (7 CFR 800.117)
The commenter representing an official inspection agency
association recommended that GIPSA change the proposed language in 7
CFR 800.117(b)(3) to reflect the intent of Congress to remove GIPSA's
discretion to approve waivers of official agency boundaries based on
signed agreements. They acknowledge that GIPSA must still be notified
of such agreements and review the agreements for compliance with the
USGSA. Another commenter expressed support for allowing such agreements
between adjacent official agencies. Since the Reauthorization Act
amended the USGSA to read that ``the Secretary shall allow a designated
official agency to cross boundary lines'' if certain provisions are met
(7 U.S.C. 79(f)(2)), GIPSA agrees with the recommendation and is
changing the language contained in the proposed rule.
Delegations (7 CFR 800.195)
The grain industry association commenters recommended a few changes
to GIPSA's proposed rule language concerning delegations of State
agencies. They recommended that a delegated State must notify all
affected export port locations and elevator operators, in addition to
notifying GIPSA, 72 hours in advance of any intent to discontinue
service. They also recommended including language requiring GIPSA to
notify Congress within 24 hours of any disruption.
The Reauthorization Act only requires delegated States to notify
GIPSA of any intent to discontinue service, while requiring GIPSA to
``immediately take such actions as are necessary to address the
disruption and resume inspections or weighings'' (7 U.S.C. 77(d)(1)).
Under such circumstances, it would fall on GIPSA to provide
notification to customers. GIPSA declines to include language in the
regulations concerning its requirement to notify Congress, as that is
already required by the USGSA (7 U.S.C. 77(d)(2)) and inclusion in the
regulations is unnecessary.
Additionally, the industry commenters recommended that the reviews
of delegated States should start no later than September 30, 2016, and
that funding for the reviews be derived solely from appropriated funds.
GIPSA intends to conduct formal reviews for each of the five delegated
States mirroring the existing process that GIPSA uses to renew the
designations of official agencies. GIPSA intends to conduct the first
review prior to September 30, 2016, and plans to conduct reviews for
every State before certain provisions of the USGSA are set to expire on
October 1, 2020. GIPSA finds that the inclusion of language in the
regulations concerning the funding of delegation review through
appropriated funds to be unnecessary. The USGSA only authorizes user
fees to cover the costs incidental to official inspection and weighing
and related supervision and administration activities (7 U.S.C. 79(j)
and 7 U.S.C. 79a(l)). Appropriated funds are authorized to perform
compliance activities (7 U.S.C. 87h), which includes delegation
reviews.
Final Action
Based on the above review of comments received in response to 81 FR
3970, GIPSA is amending the regulations of 7 CFR part 800 as outlined
in the proposed rule, with exceptions noted in the comment review.
Executive Orders 12866 and 13563 and the Regulatory Flexibility Act
The Office of Management and Budget has designated this rulemaking
as not significant under Executive Order 12866, ``Regulatory Planning
and Review'' and Executive Order 13563, ``Improving Regulation and
Regulation Review.'' Since grain export volume can vary significantly
from year to year, estimating the impact in any future fee changes can
be difficult. GIPSA recognizes the need to provide predictability to
the industry for inspection and weighing fees. While not required by
the Reauthorization Act, this rulemaking limits the impact of a large
annual change in fees by setting an annual cap of 5 percent for
increases or decreases in inspection and weighing fees. The statutory
requirement to maintain an operating reserve between 3 and 6 months of
operating expenses ensures that GIPSA can adequately cover its costs
without imposing an undue burden on its customers.
Currently, GIPSA regularly reviews its user-fee financed programs
to determine if the fees charged for performing official inspection and
weighing services adequately cover the cost of providing those
services. This policy remains unchanged in this proposed regulation.
GIPSA will continue to seek out cost saving measures and implement
appropriate changes to reduce its costs to provide alternatives to fee
increases.
This rulemaking is unlikely to have an annual effect of $100
million or more or adversely affect the economy. The changes to the
regulation in this
[[Page 49859]]
rulemaking are a direct response to Congressional action. Also, under
the requirements set forth in the Regulatory Flexibility Act (RFA) (5
U.S.C. 601-12), GIPSA has considered the economic impact of this
rulemaking on small entities. The purpose of the Regulatory Flexibility
Act is to fit regulatory actions to the scale of businesses subject to
such actions. This ensures that small businesses will not be unduly or
disproportionately burdened. GIPSA is issuing this rulemaking solely
because the Reauthorization Act amended the USGSA, which requires that
the regulations be updated to reflect the changes made to the USGSA by
the Reauthorization Act.
The Small Business Administration (SBA) defines small businesses by
their North American Industry Classification System Codes (NAICS). This
rulemaking affects customers of GIPSA's official inspection and
weighing services in the domestic and export grain markets (NAICS code
115114). Fees for that program are in Schedules A (Tables 1-3) and B of
section 800.71 of GIPSA's regulations (7 CFR 800.71).
Under the USGSA, all grain exported from the United States must be
officially inspected and weighed. GIPSA provides mandatory inspection
and weighing services at 45 export facilities in the United States and
7 facilities for U.S. grain transshipped through Canadian ports. Five
delegated State agencies provide mandatory inspection and weighing
services at 13 facilities. All of these facilities are owned by multi-
national corporations, large cooperatives, or public entities that do
not meet the requirements for small entities established by the SBA.
Further, the provisions of this rulemaking apply equally to all
entities. The USGSA requires the registration of all persons engaged in
the business of buying grain for sale in foreign commerce. In addition,
those persons who handle, weigh, or transport grain for sale in foreign
commerce must also register. The regulations found at 7 CFR 800.30
define a foreign commerce grain business as persons who regularly
engage in buying for sale, handling, weighing, or transporting grain
totaling 15,000 metric tons or more during the preceding or current
calendar year. Currently, there are 108 businesses registered to export
grain, most of which are not small businesses.
Most users of the official inspection and weighing services do not
meet the SBA requirements for small entities. Further, GIPSA is
required by statute to make services available to all applicants and to
recover the costs of providing such services as nearly as practicable,
while maintaining a 3 to 6 month operating reserve. There are no
additional reporting, record keeping, or other compliance requirements
imposed upon small entities as a result of this rulemaking. GIPSA has
not identified any other federal rules which may duplicate, overlap, or
conflict with this rulemaking. Because this rulemaking does not have a
significant economic impact on a substantial number of small entities,
an initial regulatory flexibility analysis is not provided.
Executive Order 12988
This rulemaking has been reviewed under Executive Order 12988,
``Civil Justice Reform.'' This rulemaking does not preempt State or
local laws, regulations, or policies unless they represent an
irreconcilable conflict with this rulemaking. This rulemaking does not
have retroactive effect.
Executive Order 13132
This rulemaking has been reviewed under Executive Order 13132,
``Federalism.'' The policies in this rulemaking do not have any
substantial direct effect on States, on the relationship between
federal government and the States, or on the distribution of power and
responsibilities among various levels of government, except as required
by law. This rulemaking does not impose substantial direct compliance
costs on State and local governments. Because States already retain
records for their ordinary operations, Sec. 800.195(g)(4) should not
have a significant impact on State governments. Therefore, consultation
with the States is not required.
Executive Order 13175
This rulemaking has been reviewed under Executive Order 13175,
``Consultation and Coordination with Indian Tribal Governments.'' To
our knowledge, this rulemaking does not have tribal implications that
require tribal consultation under Executive Order 13175. If a Tribe
requests consultation, GIPSA will work with the USDA Office of Tribal
Relations to ensure meaningful consultation is provided where changes,
additions, and modifications identified in this rulemaking are not
expressly mandated by the Reauthorization Act.
Paperwork Reduction Act
In compliance with the Paperwork Reduction Act of 1995 (44 U.S.C.
chapter 35), the information collection and record keeping requirements
included in this rulemaking have been approved by the OMB under control
number 0580-0013, which expires on January 31, 2018.
GIPSA is committed to complying with the Government Paperwork
Elimination Act, which requires Government agencies in general to
provide the public the option of submitting information or transacting
business electronically to maximum extent possible.
E-Government Compliance
GIPSA is committed to complying with the E-Government Act, to
promote the use of the Internet and other information technologies to
provide increased opportunities for citizen access to Government
information and services, and for other purposes.
List of Subjects in 7 CFR Part 800
Administrative practice and procedure, Exports, Grains, Reporting
and recordkeeping requirements.
For the reasons set out in the preamble, GIPSA amends 7 CFR part
800 as follows:
PART 800--GENERAL REGULATIONS
0
1. The authority citation for part 800 continues to read as follows:
Authority: 7 U.S.C. 71-87k.
0
2. In Sec. 800.0, in paragraph (b), add in alphabetical order
definitions for ``Emergency'', ``Field Office administrative costs'',
``National program administrative costs'', ``Operating expenses'', and
``Operating reserve'' to read as follows:
Sec. 800.0 Meaning of terms.
* * * * *
(b) * * *
Emergency. A situation that is outside the control of the applicant
that prevents official inspection or weighing services within 24 hours
of the scheduled service time.
* * * * *
Field Office administrative costs. The costs of management,
support, and maintenance of a Field Office, including, but not limited
to, the management and administrative support personnel, rent, and
utilities. This does not include any costs directly related to
providing original or review inspection or weighing services.
* * * * *
National program administrative costs. The costs of national
management and support of official grain inspection and/or weighing.
This does not include the Field Office administrative costs and any
costs directly related to providing service.
* * * * *
[[Page 49860]]
Operating expenses. The total costs to the Service to provide
official grain inspection and/or weighing services.
Operating reserve. The amount of funds the Service has available to
provide official grain inspection and/or weighing services.
* * * * *
Sec. 800.15 [Amended]
0
3. Amend Sec. 800.15 by removing paragraph (b)(2) and redesignating
paragraphs (b)(3) and (4) as (b)(2) and (3), respectively.
0
4. In Sec. 800.18, revise paragraph (b)(7) to read as follows:
Sec. 800.18 Waivers of the official inspection and Class X weighing
requirements.
* * * * *
(b) * * *
(7) Emergency waiver. (i) Upon request, the requirements for
official inspection or Class X weighing will be waived whenever the
Service determines that an emergency exists that precludes official
inspection or Class X weighing;
(ii) To qualify for an emergency waiver, the exporter or elevator
operator must submit a timely written request to the Service for the
emergency waiver and also comply with all conditions that the Service
may require.
* * * * *
0
5. Revise Sec. 800.71 to read as follows.
Sec. 800.71 Fees assessed by the Service.
(a) Official inspection and weighing services. The fees shown in
Schedule A of paragraph (a)(1) of this section apply to official
inspection and weighing services performed by FGIS in the U.S. and
Canada. The fees shown in Schedule B of paragraph (a)(2) of this
section apply to official domestic inspection and weighing services
performed by delegated States and designated agencies, including land
carrier shipments to Canada and Mexico. The fees charged to delegated
States by the Service are set forth in the State's Delegation of
Authority document. Failure of a delegated State or designated agency
to pay the appropriate fees to the Service within 30 days after
becoming due will result in an automatic termination of the delegation
or designation. The delegation or designation may be reinstated by the
Service if fees that are due, plus interest and any further expenses
incurred by the Service because of the termination, are paid within 60
days of the termination.
(1) Schedule A--Fees for official inspection and weighing services
performed in the United States and Canada, effective October 1, 2015.
Canada fees include the noncontract hourly rate, the Toledo Field
Office tonnage fee, and the actual cost of travel.
Table 1 of Schedule A--Fees for Official Services Performed at an Applicant's Facility in an Onsite FGIS
Laboratory \1\
----------------------------------------------------------------------------------------------------------------
Monday to Monday to Saturday,
Friday (6 a.m. Friday (6 p.m. Sunday, and Holidays
to 6 p.m.) to 6 a.m.) overtime \2\
----------------------------------------------------------------------------------------------------------------
(i) Inspection and Weighing Services Hourly
Rates (per service representative):
1-year contract ($ per hour)................ $40.20 $42.10 $48.20 $71.40
Noncontract ($ per hour).................... 71.40 71.40 71.40 71.40
(ii) Additional Tests (cost per test, assessed
in addition to the hourly rate): \3\
(A) Aflatoxin (rapid test kit method)....... .............. .............. .............. 11.40
(B) Aflatoxin (rapid test kit method- .............. .............. .............. 9.40
applicant provides kit) \4\................
(C) All other Mycotoxins (rapid test kit .............. .............. .............. 20.80
method)....................................
(D) All other Mycotoxins (rapid test kit .............. .............. .............. 18.80
method-applicant provides kit) \4\.........
(E) NIR or NMR Analysis (protein, oil, .............. .............. .............. 2.70
starch, etc.)..............................
(F) Waxy corn (per test).................... .............. .............. .............. 2.70
(G) Fees for other tests not listed above
will be based on the lowest noncontract
hourly rate
(H) Other services
(1) Class Y Weighing (per carrier):
(i) Truck/container................. .............. .............. .............. 0.70
(ii) Railcar........................ .............. .............. .............. 1.70
(iii) Barge......................... .............. .............. .............. 3.00
(iii) Tonnage Fee (assessed in addition to all
other applicable fees, only one tonnage fee
will be assessed when inspection and weighing
services are performed on the same carrier):
(A) All outbound carriers serviced by the
specific Field Office (per-metric ton):
(1) League City......................... .............. .............. .............. 0.192
(2) New Orleans......................... .............. .............. .............. 0.094
(3) Portland............................ .............. .............. .............. 0.191
(4) Toledo.............................. .............. .............. .............. 0.306
(5) Delegated States \5\................ .............. .............. .............. 0.061
(6) Designated Agencies \5\............. .............. .............. .............. 0.061
----------------------------------------------------------------------------------------------------------------
\1\ Fees apply to original inspection and weighing, re-inspection, and appeal inspection service and include,
but are not limited to, sampling, grading, weighing, prior to loading stowage examinations, and certifying
results performed within 25 miles of an employee's assigned duty station. Travel and related expenses will be
charged for service outside 25 miles as found in Sec. 800.72(a).
\2\ Overtime rates will be assessed for all hours in excess of 8 consecutive hours that result from an applicant
scheduling or requesting service beyond 8 hours, or if requests for additional shifts exceed existing
staffing.
\3\ Appeal and re-inspection services will be assessed the same fee as the original inspection service.
\4\ Applicant must provide the test kit, instrument hardware, calibration control, and all supplies required by
the test kit manufacturer.
\5\ Tonnage fee is assessed on export grain inspected and/or weighed, excluding land carrier shipments to Canada
and Mexico.
[[Page 49861]]
Table 2 of Schedule A--Services Performed at Other Than an Applicant's
Facility in an FGIS Laboratory 1 2
------------------------------------------------------------------------
------------------------------------------------------------------------
(i) Original Inspection and Weighing (Class X) Services:
(A) Sampling only (use hourly rates from Table 1 of
this section)
(B) Stationary lots (sampling, grade/factor, &
checkloading):
(1) Truck/trailer/container (per carrier)....... $22.50
(2) Railcar (per carrier)....................... 33.30
(3) Barge (per carrier)......................... 209.10
(4) Sacked grain (per hour per service 0.08
representative plus an administrative fee per
hundredweight) (CWT)...........................
(C) Lots sampled online during loading (sampling
charge under (1)(i) of this table, plus):
(1) Truck/trailer container (per carrier)....... 13.50
(2) Railcar (per carrier)....................... 28.10
(3) Barge (per carrier)......................... 143.00
(4) Sacked grain (per hour per service 0.08
representative plus an administrative fee per
hundredweight) (CWT)...........................
(D) Other services:
(1) Submitted sample (per sample--grade and 13.50
factor)........................................
(2) Warehouseman inspection (per sample)........ 23.60
(3) Factor only (per factor--maximum 2 factors). 6.60
(4) Checkloading/condition examination (use 0.08
hourly rates from Table 1 of this section, plus
an administrative fee per hundredweight if not
previously assessed) (CWT).....................
(5) Re-inspection (grade and factor only. 14.60
Sampling service additional, item (1)(i) of
this table)....................................
(6) Class X Weighing (per hour per service 71.40
representative)................................
(E) Additional tests (excludes sampling):
(1) Aflatoxin (rapid test kit method)........... 33.60
(2) Aflatoxin (rapid test kit method--applicant 31.60
provides kit) \3\..............................
(3) All other Mycotoxins (rapid test kit method) 43.20
(4) All other Mycotoxins (rapid test kit method-- 41.20
applicant provides kit) \3\....................
(5) NIR or NMR Analysis (protein, oil, starch, 11.40
etc.)..........................................
(6) Waxy corn (per test)........................ 11.40
(7) Canola (per test-00 dip test)............... 11.40
(8) Pesticide Residue Testing: \4\
(i) Routine Compounds (per sample).......... 240.90
(ii) Special Compounds (Subject to 128.40
availability)..............................
(9) Fees for other tests not listed above will
be based on the lowest noncontract hourly rate
from Table 1 of this section...................
(ii) Appeal inspection and review of weighing service
\5\
(A) Board Appeals and Appeals (grade and factor) 91.50
(1) Factor only (per factor--max 2 factors)..... 48.20
(2) Sampling service for Appeals additional
(hourly rates from Table 1 of this section)....
(B) Additional tests (assessed in addition to all
other applicable tests):
(1) Aflatoxin (rapid test kit method)........... 33.60
(2) Aflatoxin (rapid test kit method--applicant 31.60
provides kit) \3\..............................
(3) All other Mycotoxins (rapid test kit method) 52.60
(4) All other Mycotoxins (rapid test kit method-- 50.60
applicant provides kit) \3\....................
(5) NIR or NMR Analysis (protein, oil, starch, 19.80
etc.)..........................................
(6) Sunflower oil (per test).................... 19.80
(7) Mycotoxin (per test-HPLC)................... 157.30
(8) Pesticide Residue Testing: \4\
(i) Routine Compounds (per sample).......... 240.90
(ii) Special Compounds (Subject to 128.40
availability)..............................
(9) Fees for other tests not listed above will
be based on the lowest noncontract hourly rate
from Table 1 of this section.
(C) Review of weighing (per hour per service 92.30
representative)....................................
(iii) Stowage examination (service-on-request): \4\
(A) Ship (per stowage space) (minimum $285.00 per 57.00
ship)..............................................
(B) Subsequent ship examinations (same as original) 57.00
(minimum $171.00 per ship).........................
(C) Barge (per examination)......................... 45.80
(D) All other carriers (per examination)............ 18.00
------------------------------------------------------------------------
\1\ Fees apply to original inspection and weighing, re-inspection, and
appeal inspection service and include, but are not limited to,
sampling, grading, weighing, prior to loading stowage examinations,
and certifying results performed within 25 miles of an employee's
assigned duty station. Travel and related expenses will be charged for
service outside 25 miles as found in Sec. 800.72(a).
\2\ An additional charge will be assessed when the revenue from the
services in Schedule A, Table 2, does not cover what would have been
collected at the applicable hourly rate as provided in Sec.
800.72(b).
\3\ Applicant must provide the test kit, instrument hardware,
calibration control, and all supplies required by the test kit
manufacturer.
\4\ If performed outside of normal business, 1\1/2\ times the applicable
unit fee will be charged.
\5\ If, at the request of the Service, a file sample is located and
forwarded by the Agency, the Agency may, upon request, be reimbursed
at the rate of $3.50 per sample by the Service.
Table 3 of Schedule A--Miscellaneous Services \1\
------------------------------------------------------------------------
------------------------------------------------------------------------
(i) Grain grading seminars (per hour per $71.40
service representative) \2\.
(ii) Certification of diverter-type 71.40
mechanical samplers (per hour per service
representative) \2\.
(iii) Special weighing services (per hour
per service representative): \2\
(A) Scale testing and certification..... 92.90
[[Page 49862]]
(B) Scale testing and certification of 92.90
railroad track scales.
(C) Evaluation of weighing and material 92.90
handling systems.
(D) NTEP Prototype evaluation (other 92.90
than Railroad Track Scales).
(E) NTEP Prototype evaluation of 92.90
Railroad Track Scale.
(F) Use of GIPSA railroad track scale 557.30
test equipment per facility for each
requested service. (Track scales tested
under the Association of American
Railroads agreement are exempt.)
(G) Mass standards calibration and re- 92.90
verification.
(H) Special projects.................... 92.90
(iv) Foreign travel (hourly fee) \3\........ 92.90
(v) Online customized data service:
(A) One data file per week for 1 year... 557.30
(B) One data file per month for 1 year.. 334.40
(vi) Samples provided to interested parties 3.50
(per sample).
(vii) Divided-lot certificates (per 2.20
certificate).
(viii) Extra copies of certificates (per 2.20
certificate).
(ix) Faxing (per page)...................... 2.20
(x) Special mailing......................... Actual Cost.
(xi) Preparing certificates onsite or during
other than normal business hours (use
hourly rates from Table 1).
------------------------------------------------------------------------
\1\ Any requested service that is not listed will be performed at $71.40
per hour.
\2\ Regular business hours--Monday through Friday--service provided at
other than regular business hours will be charged at 11/2 times the
applicable hourly rate. (See the definition of ``business day'' in
Sec. 800.0(b))
\3\ Foreign travel charged hourly fee of $92.90 plus travel, per diem,
and related expenditures.
(2) Schedule B--Fees for FGIS Supervision of Official Inspection
and Weighing Services Performed by Delegated States and/or Designated
Agencies in the United States. The supervision fee charged by the
Service is $0.011 per metric ton of domestic U.S. grain shipments
inspected and/or weighed, including land carrier shipments to Canada
and Mexico.
(b) Annual review of fees. For each calendar year, starting with
2017, the Service will review the fees in Schedule A in paragraph
(a)(1) of this section and publish fees effective January 1 of each
year according to the following:
(1) Tonnage fees. Tonnage fees will consist of the national tonnage
fee and local tonnage fees and will be calculated and rounded to the
nearest $0.001 per metric ton. All outbound grain officially inspected
and/or weighed by the Field Offices in New Orleans, League City,
Portland, and Toledo will be assessed the national tonnage fee plus the
appropriate local tonnage fee. Export grain officially inspected and/or
weighed by delegated States and official agencies, excluding land
carrier shipments to Canada and Mexico, will be assessed the national
tonnage fee only. The fees will be set according to the following:
(i) National tonnage fee. The national tonnage fee is the national
program administrative costs for the previous fiscal year divided by
the average yearly tons of export grain officially inspected and/or
weighed by delegated States and designated agencies, excluding land
carrier shipments to Canada and Mexico, and outbound grain officially
inspected and/or weighed by the Service during the previous 5 fiscal
years.
(ii) Local tonnage fee. The local tonnage fee is the Field Office
administrative costs for the previous fiscal year divided by the
average yearly tons of outbound grain officially inspected and/or
weighed by the Field Office during the previous 5 fiscal years. The
local tonnage fee is calculated individually for each Field Office.
(2) Operating reserve. In order to maintain an operating reserve
not less than 3 and not more than 6 months, the Service will review the
value of the operating reserve at the end of each fiscal year and
adjust fees according to the following:
(i) Less than 4.5 months. If the operating reserve is less than 4.5
times the monthly operating expenses, the Service will increase all
fees in Schedule A in paragraph (a)(1) of this section by 2 percent for
each $1,000,000, rounded down, that the operating reserve is less than
4.5 times the monthly operating expense, with a maximum increase of 5
percent annually. Except for fees based on tonnage or hundredweight,
all fees will be rounded to the nearest $0.10.
(ii) Greater than 4.5 months. If the operating reserve is greater
than 4.5 times the monthly operating expenses, the Service will
decrease all fees in Schedule A in paragraph (a)(1) of this section by
2 percent for each $1,000,000, rounded down, that the operating reserve
is greater than 4.5 times the monthly operating expense, with a maximum
decrease of 5 percent annually. Except for fees based on tonnage or
hundredweight, all fees will be rounded to the nearest $0.10.
(c) Periodic review. The Service will periodically review and
adjust all fees in Schedules A and B in paragraphs (a)(1) and (2) of
this section, respectively, as necessary to ensure they reflect the
true cost of providing and supervising official service. This process
will incorporate any fee adjustments from paragraph (b) of this
section.
(d) Miscellaneous fees for other services--(1) Registration
certificates and renewals. (i) The nature of your business will
determine the fees that your business must pay for registration
certificates and renewals:
(A) If you operate a business that buys, handles, weighs, or
transports grain for sale in foreign commerce, you must pay $135.00.
(B) If you operate a business that buys, handles, weighs, or
transports grain for sale in foreign commerce and you are also in a
control relationship (see definition in section 17A(b)(2) of the Act)
with respect to a business that buys, handles, weighs, or transports
grain for sale in interstate commerce, you must pay $270.00.
(ii) If you request extra copies of registration certificates, you
must pay $2.20 for each copy.
(2) Designation amendments. If you submit an application to amend a
designation, you must pay $75.00.
(3) Scale testing organizations. If you submit an application to
operate as a scale testing organization, you must pay $250.00.
Sec. 800.72 [Amended]
0
6. In Sec. 800.72(b), remove the reference ``Sec. 800.71'' from the
first sentence and add in its place the reference ``Sec.
800.71(a)(1).''
0
7. Amend Sec. 800.117 by removing paragraph (b)(2), redesignating
paragraph (b)(3) as (b)(2), and adding a new paragraph (b)(3) to read
as follows:
[[Page 49863]]
Sec. 800.117 Who shall perform original services.
* * * * *
(b) * * *
(3) Written agreement. If the assigned official agency agrees in
writing with the adjacent official agency to waive the current
geographic area restriction at the request of the applicant for
service, the adjacent official agency may provide service at a
particular location upon providing written notice to the Service, and
the Service determines that the written agreement conforms to the
provisions in the Act.
* * * * *
0
8. In Sec. 800.175, revise paragraph (a) to read as follows:
Sec. 800.175 Termination of licenses.
(a) Term of license. Each license shall terminate in accordance
with the termination date shown on the license and as specified in
paragraph (b) of this section. The termination date for a license shall
be no less than 5 years or more than 6 years after the issuance date
for the initial license; thereafter, every 5 years. Upon request of a
licensee and for good cause shown, the termination date may be advanced
or delayed by the Administrator for a period not to exceed 60 days.
* * * * *
0
9. In Sec. 800.195, add paragraphs (f)(11) and (g)(4) to read as
follows:
Sec. 800.195 Delegations.
* * * * *
(f) * * *
(11) Notification to Secretary. A delegated State shall notify the
Secretary of its intention to temporarily discontinue official
inspection and/or weighing services for any reason, except in the case
of a major disaster. The delegated State must provide written
notification to the Service no less than 72 hours in advance of the
discontinuation date.
* * * * *
(g) * * *
(4) Review. At least once every 5 years, a delegated State shall
submit to a review of its delegation by the Service in accordance with
the criteria and procedures for delegation prescribed in section 7(e)
of the Act, this section of the regulations, and the instructions. The
Administrator may revoke the delegation of a State according to this
subsection if the State fails to meet or comply with any of the
criteria for delegation set forth in the Act, regulations, and
instructions.
* * * * *
0
10. In Sec. 800.196, revise paragraphs (e)(2)(ii) and (iii), add
paragraph (e)(2)(iv), and revise paragraph (h)(1)(i) to read as
follows:
Sec. 800.196 Designations.
* * * * *
(e) * * *
(2) * * *
(ii) The applicant meets the conditions and criteria specified in
the Act and regulations;
(iii) The applicant is better able than any other applicant to
provide official services; and
(iv) The applicant addresses concerns identified during
consultations that the Service conducts with applicants for service to
the satisfaction of the Service.
* * * * *
(h) Termination and renewal--(1) Every 5 years--(i) Termination. A
designation shall terminate at a time specified by the Administrator,
but not later than 5 years after the effective date of the designation.
A notice of termination shall be issued by the Service to a designated
agency at least 120 calendar days in advance of the termination date.
The notice shall provide instructions for requesting renewal of the
designation. Failure to receive a notice from the Service shall not
exempt a designated agency from the responsibility of having its
designation renewed on or before the specified termination date.
* * * * *
0
11. In Sec. 800.216, revise paragraph (c) to read as follows:
Sec. 800.216 Activities that shall be monitored.
* * * * *
(c) Grain handling activities. Grain handling activities subject to
monitoring for compliance with the Act include, but are not limited to:
(1) Shipping export grain without inspection or weighing;
(2) Violating any Federal law with respect to the handling,
weighing, or inspection of grain;
(3) Deceptively loading, handling, weighing, or sampling grain; and
(4) Exporting grain without a certificate of registration.
* * * * *
Larry Mitchell,
Administrator, Grain Inspection, Packers and Stockyards Administration.
[FR Doc. 2016-17762 Filed 7-28-16; 8:45 am]
BILLING CODE 3410-KD-P