Formulas for Calculating Hourly and Unit Fees for FGIS Services, 531-535 [2024-31140]

Download as PDF 531 Rules and Regulations Federal Register Vol. 90, No. 3 Monday, January 6, 2025 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 50 titles pursuant to 44 U.S.C. 1510. The Code of Federal Regulations is sold by the Superintendent of Documents. DEPARTMENT OF AGRICULTURE Agricultural Marketing Service 7 CFR Part 800 [Doc. No. AMS–FGIS–24–0027] RIN 0581–AE31 Formulas for Calculating Hourly and Unit Fees for FGIS Services Agricultural Marketing Service, Department of Agriculture (USDA). ACTION: Final rule. AGENCY: The Agricultural Marketing Service (AMS), Federal Grain Inspection Service (FGIS or Service) is amending its user fee regulations to establish standardized formulas the agency will use to calculate hourly and unit fees. The changes allow FGIS to charge reasonable fees sufficient to cover the costs of providing official services and re-establish a 3-to 6-month operating reserve, as required by the United States Grain Standards Act (USGSA). This final rule also makes specified conforming changes and minor technical changes to correct two typographical errors. DATES: This final rule is effective February 5, 2025. FOR FURTHER INFORMATION CONTACT: Denise Ruggles, Executive Program Analyst, USDA, AMS, FGIS, Telephone: 816–702–3897, Email: Denise.M.Ruggles@usda.gov; or Anthony Goodeman, Senior Policy Advisor, USDA, AMS, FGIS, Telephone: 202–720–2091, Email: Anthony.T.Goodeman@usda.gov. SUPPLEMENTARY INFORMATION: This final rule supersedes the provisions of the interim final rule titled ‘‘Fees for Official Inspection and Weighing Services under the United Stated Grain Standards Act,’’ and all associated rulemakings, and amends FGIS’s user fee regulations to establish new formulas to calculate hourly and unit fees. The new formulas, which are khammond on DSK9W7S144PROD with RULES SUMMARY: VerDate Sep<11>2014 16:06 Jan 03, 2025 Jkt 265001 similar to the standardized formulas used in other AMS user-fee funded grading programs, amend the regulations at 7 CFR 800.71. The formulas will enable the agency to sustain operations and comply with the USGSA, which requires FGIS to charge fees sufficient to cover the costs of the official services it provides and to adjust fees annually in order to maintain an operating reserve of not less than 3 and not more than 6 months. Prospective customers can find FGIS’s fee schedules posted on AMS’s public website at: https://www.ams.usda.gov/about-ams/ fgis-program-directives. Comment Review An interim final rule concerning user fees for grain inspection and weighing services was published in the Federal Register on June 6, 2024 (89 FR 48257). The interim final rule was effective on July 8, 2024. A proposed rule concerning fee formulas by which FGIS would calculate future grain inspection and weighing fees was published October 8, 2024 (89 FR 81396). Copies of the interim rule and proposed rule were sent via email to FGIS stakeholders. The interim rule and proposed rule were also made available through the internet by AMS via https:// www.regulations.gov. AMS provided a 30-day comment period, ending July 8, 2024, to give interested persons an opportunity to respond to the interim final rule, and a 45-day comment period, ending November 22, 2024, to give interested persons an opportunity to respond to the proposed rule. FGIS received one comment to the proposed rule jointly submitted by two trade organizations. One of the trade organizations represents grain, feed, processing, exporting, and other grain handling companies who collectively operate over 8,000 facilities. The other trade association represents private and publicly owned companies and farmerowned cooperatives that are involved in, and provide services to, the agri-bulk products international trading industry. Proposed Rule for Calculating Hourly Rates and Unit Fees Two trade associations expressed support for the proposed rule fee formulas in a joint comment. Their comment urged FGIS to maintain transparency regarding the calculation data and to regularly share this information with industry stakeholders. PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 By increasing the flow of information, the comment conveyed that stakeholders can collaborate more effectively with FGIS to discover additional solutions that meet current market rates and requirements. The comment reiterated, similar to feedback on FGIS’s interim final rule that revised its user fees, that significant increases in fees paid by industry are unsustainable. Concern was expressed that there is too little transparency in the existing calculation process, which makes it ‘‘difficult for both the FGIS and [stakeholders] to budget and plan for services provided. User fees should be predictable and market-based to provide enough funding and properly reflect the work performed.’’ The comment also suggested that FGIS uncouple hourly fee calculations from the existing five-year rolling average calculation used for tonnage fees. FGIS agrees with the comment. The formulas adopted in this final rule will ensure greater transparency regarding the calculation of hourly rates for industry participants, as well as help mitigate large, one-time increases. This final rule also separates the calculation of hourly rates from the five-year rolling average calculation for tonnage fees. After consideration of all relevant material presented in the comment and other available information, FGIS has determined that it is appropriate to finalize the proposed rule, as published in the Federal Register on October 8, 2024 (89 FR 81396), without change. Conforming Regulatory Changes In an interim rule published in the June 6, 2024, edition of the Federal Register (89 FR 48257), FGIS established revised fees for the remainder of 2024 (and until new fees are established using the formulas in this final rule). To implement the revised fees, the interim rule imposed a stay on §§ 800.71 and 800.72(b). To amend these sections, this rulemaking lifts the stay imposed on them by the interim rule. This rule also makes certain conforming changes in 7 CFR part 800. Specifically, this rule restores references to §§ 800.71 and 800.72 that were amended by the interim rule. In order to implement revised fees for 2024, the interim rule replaced references to § 800.71, which was stayed, with references to a newly added temporary section, § 800.74. Because § 800.72(b) E:\FR\FM\06JAR1.SGM 06JAR1 532 Federal Register / Vol. 90, No. 3 / Monday, January 6, 2025 / Rules and Regulations was also stayed, the interim rule replaced a reference to that section in § 800.73(d) with a reference to §§ 800.72(a) and 800.74. As this final rule revises § 800.71 to incorporate the formulas, these internal substitutions are no longer needed. Accordingly, this rule replaces references to § 800.74 with references to § 800.71 in §§ 800.34, 800.36, 800.156(d)(5), and 800.197(b)(3). This rule also replaces the reference to §§ 800.72(a) and 800.74 in § 800.73(d) with a reference to § 800.72. Finally, because the changes to § 800.71 will render § 800.74 obsolete, this rule also removes that section. Technical Corrections This rule also corrects two typographical errors—a reference to 5 U.S.C. 6103 and a reference to Executive Order 10358—in the definition of Holiday in 7 CFR 800.0—Meaning of terms. These corrections do not create new or amend existing requirements or interpretations. Required Regulatory Analyses khammond on DSK9W7S144PROD with RULES Executive Orders 12866, 13563, and 14094 This rule is being issued in conformance with Executive Order 12866, ‘‘Regulatory Planning and Review,’’ Executive Order 13563, ‘‘Improving Regulation and Regulatory Review,’’ and Executive Order 14094, ‘‘Modernizing Regulatory Review.’’ Executive Orders 12866 and 13563 direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, reducing costs, harmonizing rules, and promoting flexibility. Executive Order 14094 reaffirms, supplements, and updates Executive Order 12866 and further directs agencies to solicit and consider input from a wide range of affected and interested parties through a variety of means. The Office of Management and Budget (OMB) has designated this rule as not significant under Executive Orders 12866, 13563, and 14094. Accordingly, OMB has not reviewed this rule under those orders. Since grain export volume can vary significantly from year to year, estimating the impact of future fee changes can be difficult. FGIS recognizes the need to provide predictability to the industry for VerDate Sep<11>2014 16:06 Jan 03, 2025 Jkt 265001 inspection and weighing fees. The statutory requirement to maintain an operating reserve between 3 to 6 months of operating expenses ensures that FGIS can adequately cover its costs without imposing an undue burden on its customers. FGIS regularly reviews its user-fee financed programs to determine whether the fees charged for performing official inspection and weighing services adequately cover the costs of providing those services. Due to limitations in the current regulations (7 CFR 800.71(b)(3)), which permit fee increases of no more than 5 percent per year, combined with four years of rate decreases, and noneconomic factors that led to the 2020–2023 period having highest inflation in more than 40 years,1 FGIS faced an operating deficit that was forecasted to grow without corrective action. This rule revises the formulas under which FGIS adjusts fees annually to ensure stability of the program. The rule will also ensure that FGIS complies with the USGSA, which requires the agency to charge fees sufficient to cover its costs and maintain a 3- to 6-month operating reserve. FGIS will continue to seek out cost-saving measures and implement appropriate changes to reduce its costs to provide alternatives to fee increases. This rule is unlikely to have an annual effect of $200 million or more or adversely affect the economy. FGIS has operated at a net loss for five consecutive years, and even with the maximum fee increases permitted under the current regulations, the agency has been unable to reduce the deficits and rebuild the operating reserve. While FGIS’s interim final rule, published previously in the Federal Register (89 FR 48257), addresses the agency’s current deficit, this rule seeks to prevent additional deficits in future years by revising FGIS’s user fee regulations to enable more accurate calculation of its costs and greater flexibility in future rate changes. FGIS believes that the U.S. grain industry will be best served by revising the regulation at 7 CFR 800.71, which addresses the calculation of fees for official inspection and weighing services performed by FGIS in the U.S. and Canada. The industry is already familiar with the annual process for evaluating and updating fees and anticipates the changes in this rule. This rule allows FGIS to continue providing 1 For example, the Consumer Price Index (CPI) Calculator (https://data.bls.gov/cgi-bin/cpicalc.pl) shows prices up 20 percent between January 2020 and February 2024, and up 31 percent between January 2016 and February 2024. PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 mandatory and voluntary grain inspection services that facilitate international and domestic trade. This rule also allows FGIS to adjust fees in the future in response to unforeseeable climate, logistical, and market conditions, and to maintain required operating reserves. Regulatory Flexibility Analysis Under the requirements set forth in the Regulatory Flexibility Act (RFA) (5 U.S.C. 601–12), FGIS has considered the economic impact of this final rule on small entities. Accordingly, FGIS has prepared this regulatory flexibility analysis. 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. The Small Business Administration (SBA) defines small businesses by their North American Industry Classification System Codes (NAICS). This final rule will affect customers of FGIS’s official inspection and weighing services in the domestic and export grain markets (NAICS code 115114). Current guidance from the SBA provides a revenue cutoff at $34 million to differentiate large and small firms in this industry. Fees for the program which apply to this industry are provided on the FGIS website. Under the USGSA, all grain exported from the United States must be officially inspected and weighed, with few exceptions. FGIS provides mandatory inspection and weighing services at 29 export facilities in the United States. Five delegated State agencies provide mandatory inspection and weighing services at 20 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. 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 and 800.31 define a foreign commerce grain business as the business of regularly buying, handling, weighing, or transporting grain for sale in foreign commerce totaling 15,000 metric tons or more during the preceding or current calendar year. Currently, there are 174 businesses registered to export grain, most of which are not small businesses. Although most exporters are not small businesses, most users of FGIS’s official inspection and weighing services E:\FR\FM\06JAR1.SGM 06JAR1 533 Federal Register / Vol. 90, No. 3 / Monday, January 6, 2025 / Rules and Regulations (which include domestic grain businesses as well as exporters) meet the SBA requirements for small entities. Data on user fee receipts from FGIS for the past 5 years, plus 2024 through February, show a total of 2,123 different accounts over this time, though many firms are represented by multiple accounts. For the purpose of this regulatory flexibility analysis, FGIS will consider accounts as representing establishments, with multiple establishments associated with larger firms. FGIS identified a total of 31 large firms, as defined by the SBA firm size classification of receipts in excess of $34 million. FGIS also identified the total number of establishments affiliated with the 31 large firms to be 133. With a total number of establishments of 2,123, this means 1,990, or 94 percent, of the establishments that paid fees to FGIS over the 2019–2024 period are small businesses according to the SBA definition. Table 1 shows that while only 6 percent of the firms are considered large, in total they have contributed the vast majority of the fees paid to the program. In each of the five previous years, and for the year 2024 to date, the 31 large firms paid between 86 and 90 percent of all FGIS fees, with an average of 89 percent. The remaining 1,990 establishments paid on average 11 percent of total fees. TABLE 1—FGIS BILLED ACCOUNTS SUMMARY TABLE FOR REGULATORY FLEXIBILITY ANALYSIS BY SMALL BUSINESS ADMINISTRATION SIZE CLASSIFICATION All firms khammond on DSK9W7S144PROD with RULES Fiscal year Large firms Total fees paid Small firms Share paid (%) Total fees paid Total fees paid Share paid (%) 2019 ..................................................................................................... 2020 ..................................................................................................... 2021 ..................................................................................................... 2022 ..................................................................................................... 2023 ..................................................................................................... Oct 2023–Feb 2024 ............................................................................. $32,314,848 30,746,015 34,320,110 31,663,547 27,734,760 10,702,712 $27,694,899 27,386,467 30,693,195 28,183,027 25,069,234 9,679,943 86 89 89 89 90 90 $4,619,949 3,359,547 3,626,915 3,480,520 2,665,526 1,022,769 14 11 11 11 10 10 Grand Total ................................................................................... 167,481,991 148,706,765 89 18,775,226 11 The amendments to FGIS’s user fee regulations will not change the relative burden of fees on small businesses. The provisions of this final rule will apply equally to all entities. In addition, use of standardized user-fee rate calculations will benefit all inspection applicants, regardless of size, as fees will more closely reflect the current costs of inspections, and the fee calculation process will be more transparent. Through its annual review, FGIS will be able to monitor the financial status of the grain inspection and weighing program to determine whether further adjustments are necessary. Finally, this final rule will not impose additional reporting, record keeping, or other compliance requirements on small entities. FGIS has not identified any other Federal rules which may duplicate, overlap, or conflict with this final rule. present an irreconcilable conflict with this final rule. There are no administrative procedures that must be exhausted prior to any judicial challenge to the provisions of this final rule. Executive Order 12988 Congressional Review Act This final rule has been reviewed under Executive Order 12988—Civil Justice Reform. It is not intended to have retroactive effect. Section 18 of the USGSA (7 U.S.C. 87g) provides that no State or subdivision thereof may require or impose any requirements or restrictions concerning the inspection, weighing, or description of grain under the USGSA. Otherwise, this final rule will not preempt any State or local laws, regulations, or policies unless they Pursuant to the Congressional Review Act (5 U.S.C. 801–808), the Office of Information and Regulatory Affairs designated this final rule as not a major rule, as defined by 5 U.S.C. 804(2). VerDate Sep<11>2014 16:06 Jan 03, 2025 Jkt 265001 Executive Order 13175 This final rule has been reviewed under Executive Order 13175— Consultation and Coordination with Indian Tribal Governments, which requires agencies to consider whether their rulemaking actions would have Tribal implications. FGIS has determined that this final rule is unlikely to have substantial direct effects on one or more Indian Tribes, on the relationship between the Federal Government and Indian Tribes, or on the distribution of power and responsibilities between the Federal Government and Indian Tribes. E-Government Act USDA is committed to complying with the provisions of the EGovernment Act (44 U.S.C. 3601–3616) by promoting the use of the internet and other information technologies to PO 00000 Frm 00003 Fmt 4700 Sfmt 4700 provide increased opportunities for citizen access to government information and services, and for other purposes. Paperwork Reduction Act This final rule will not impose any additional reporting or recordkeeping requirements on either small or large FGIS customers. In compliance with the Paperwork Reduction Act of 1995 (44 U.S.C. chapter 35), FGIS reports and forms are periodically reviewed to reduce information collection requirements and duplication. List of Subjects in 7 CFR Part 800 Administrative practice and procedure, Conflict of interests, Exports, Freedom of information, Grains, Intergovernmental relations, Penalties, Reporting and recordkeeping requirements. For the reasons set forth in the preamble, the Agricultural Marketing Service 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. § 800.0 [Amended] 2. In § 800.0, in paragraph (b), in the definition of ‘‘Holiday’’, remove the text ■ E:\FR\FM\06JAR1.SGM 06JAR1 534 Federal Register / Vol. 90, No. 3 / Monday, January 6, 2025 / Rules and Regulations ‘‘Under section 610 and Executive Order No. 10357’’ and add, in its place, the text ‘‘Under section 6103 and Executive Order 10358’’. § 800.34 [Amended] 3. In § 800.34, in the first sentence, remove the citation ‘‘§ 800.74’’ and add, in its place, the citation ‘‘§ 800.71’’. ■ § 800.36 [Amended] 4. In § 800.36, in the last sentence, remove the citation ‘‘§ 800.74’’ and add, in its place, the citation ‘‘§ 800.71’’. ■ 5. Amend § 800.71 by lifting the stay and revising the section to read as follows: ■ khammond on DSK9W7S144PROD with RULES § 800.71 Fees assessed by the Service. (a) Official inspection and weighing services. The fees described for Direct Service in paragraph (a)(1) of this section apply to official inspection and weighing services performed by the Service in the U.S. and Canada. The fees described for Supervision in 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) Direct Service—Fees for official inspection and weighing services performed by the Service in the United States and Canada. For each calendar year, the Service will calculate Direct Service fees as provided in paragraphs (b) and (c) of this section. The Service will publish a notice in the Federal Register and post Direct Service fees on its public website. (2) Supervision—Fees for supervision of official inspection and weighing services performed by delegated States and designated agencies in the United States. The Service will assess a Supervision fee per metric ton of domestic U.S. grain shipments inspected or weighed, or both, including land carrier shipments to Canada and Mexico. For each calendar year, the Service will calculate Supervision fees as provided in paragraph (d) of this section. The Service will publish a VerDate Sep<11>2014 16:06 Jan 03, 2025 Jkt 265001 notice in the Federal Register and post the Supervision fees on its public website. (b) Annual review of tonnage fees. For each calendar year, the Service will review and adjust fees included in this section and publish fees each year according to the following: (1) Tonnage fees. Tonnage fees for Direct Service in paragraph (a)(1) of this section will consist of the national tonnage fee and local tonnage fees and the Service will calculate and round the fee to the nearest $0.001 per metric ton. All outbound grain officially inspected and/or weighed by the Field Offices 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) [Reserved] (c) Annual review of hourly and unit fees. The Service will calculate the rate for program services, per hour per program employee using the following formulas: (1) Regular rate. The total direct pay of program personnel performing grading, weighing, laboratory services, and equipment testing divided by the total direct hours for the previous year, which is then multiplied by the next year’s percentage cost-of-living increase, plus the benefits rate, plus the operating rate, plus the allowance for bad debt rate. If applicable, travel expenses will be added to the cost of providing the service through the operating rate or the travel will be billed separately. (2) Overtime rate. The total direct pay of program personnel performing grading, weighing, laboratory services, and equipment testing divided by the PO 00000 Frm 00004 Fmt 4700 Sfmt 4700 total direct hours for the previous year, which is then multiplied by the next year’s percentage cost-of-living increase and then multiplied by 1.5, plus the benefits rate, plus the operating rate, plus the allowance for bad debt rate. If applicable, travel expenses will be added to the cost of providing the service through the operating rate or the travel will be billed separately. (3) Holiday rate. The total direct pay of program personnel performing grading, weighing, laboratory services, and equipment testing divided by the total direct hours for the previous year, which is then multiplied by the next year’s percentage cost-of-living increase and then multiplied by 2, plus the benefits rate, plus the operating rate, plus the allowance for bad debt rate. If applicable, travel expenses will be added to the cost of providing the service through the operating rate or the travel will be billed separately. (4) Benefits rate, operating rate, and allowance for bad debt rate. For each calendar year, based on previous fiscal year costs, the Service will calculate the benefits rate, operating rate, and allowance for bad debt rate as follows: (i) Benefits rate. The total direct benefits costs of program personnel performing grading, weighing, laboratory services, and equipment testing divided by the total hours (regular, overtime, and holiday) worked, which is then multiplied by the next calendar year’s percentage cost-of-living increase. (ii) Operating rate. The total operating costs of program personnel performing grading, weighing, laboratory services, and equipment testing divided by total hours (regular, overtime, and holiday) worked, which is then multiplied by the percentage of inflation. (iii) Allowance for bad debt rate. The total allowance for bad debt for personnel performing grading, weighing, laboratory services, and equipment testing divided by total hours (regular, overtime, and holiday) worked. (5) Cost of living and inflation factors. The Service will use the most recent economic factors released by the Office of Management and Budget for budget development purposes to derive the cost-of-living expenses and percentage of inflation factors used in the formulas in this section. (6) Operating reserve adjustment. The Service will review the operating reserve at the end of each fiscal year and adjust the fees as needed to ensure an operating reserve of 3 to 6 months of expenses. This adjustment is included in the calculation for operating cost. E:\FR\FM\06JAR1.SGM 06JAR1 khammond on DSK9W7S144PROD with RULES Federal Register / Vol. 90, No. 3 / Monday, January 6, 2025 / Rules and Regulations (d) Annual review of Supervision fees. Fees for Supervision in paragraph (a)(2) of this section will be set according to the following: (1) Supervision tonnage fee. The supervision tonnage fee is the sum of the prior fiscal year program costs plus an operating reserve adjustment divided by the average yearly tons of domestic U.S. grain shipments inspected or weighed, or both, including land carrier shipments to Canada and Mexico, during the previous 5 fiscal years. If the calculated value is zero or a negative value, the Service will suspend the collection of supervision tonnage fees for 1 calendar year. (2) Operating reserve adjustment. The operating reserve adjustment is the supervision program costs for the previous fiscal year divided by 2, less the end of previous fiscal year operating reserve balance. (e) Periodic review. The Service will periodically review and adjust all Direct Service and Supervision fees 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 paragraphs (b) through (d) of this section. (f) Miscellaneous fees for other services. For each calendar year, the Service will review fees included in this section and publish fees in the Federal Register and on its public website. (1) Registration certificates and renewals. The fee for registration certificates and renewals will be published annually in the Federal Register and on the Service’s public website, and the Service will calculate the fee using the noncontract hourly rate published pursuant to paragraph (a)(1) of this section multiplied by 5. If you operate a business that buys, handles, weighs, or transports grain for sale in foreign commerce, or you are in a control relationship with respect to a business that buys, handles, weighs, or transports grain for sale in interstate commerce, you must complete an application and pay the published fee. (2) Designation amendments. The fee for amending designations will be published annually in the Federal Register and on the Service’s public website. The Service will calculate the fee using the cost of publication plus 1 hour at the noncontract hourly rate. If submitting an application to amend a designation, the published fee must be paid. ■ 6. In § 800.72: ■ a. Lift the stay on paragraph (b); and ■ b. Revise paragraph (b). VerDate Sep<11>2014 16:06 Jan 03, 2025 Jkt 265001 The revision reads as follows: § 800.72 Explanation of additional service fees for services performed in the United States only. * * * * * (b) In addition to a 2-hour minimum charge for service on Saturdays, Sundays, and holidays, an additional charge will be assessed when the revenue from the services in § 800.71(a)(1) does not equal or exceed what would have been collected at the applicable hourly rate. The additional charge will be the difference between the actual unit fee revenue and the hourly fee revenue. Hours accrued for travel and standby time shall apply in determining the hours for the minimum fee. § 800.73 [Amended] 7. In § 800.73, in paragraph (d), remove the citation ‘‘§§ 800.72(a) and 800.74’’ and add, in its place, the citation ‘‘§ 800.72’’. ■ § 800.74 ■ [Removed] 8. Remove § 800.74. § 800.156 [Amended] 9. In § 800.156, in paragraph (d)(5), in the last sentence, remove the citation ‘‘§ 800.74’’ and add, in its place, the citation ‘‘§ 800.71’’. ■ § 800.197 [Amended] 10. In § 800.197, in paragraph (b)(3), remove the citation ‘‘§ 800.74’’ and add, in its place, the citation ‘‘§ 800.71’’. ■ Melissa Bailey, Associate Administrator, Agricultural Marketing Service. [FR Doc. 2024–31140 Filed 1–3–25; 8:45 am] BILLING CODE P DEPARTMENT OF HOMELAND SECURITY 8 CFR Part 103 [DHS Docket No. ICEB–2021–0015] RIN 1653–AA85 Immigration Bond Notifications U.S. Immigration and Customs Enforcement (ICE), Department of Homeland Security (DHS). ACTION: Final rule. AGENCY: On August 8, 2023, DHS issued an interim final rule which amended the regulations to authorize ICE to serve bond-related notices to obligors electronically. The rule allowed DHS to electronically serve demand and other immigration bond notices for SUMMARY: PO 00000 Frm 00005 Fmt 4700 Sfmt 4700 535 delivery, order of supervision, or voluntary departure bonds to obligors who consent to electronic service. DHS is now issuing this final rule that introduces no substantive changes from the interim final rule. DATES: The effective date of this final rule is January 6, 2025. FOR FURTHER INFORMATION CONTACT: Sharon Hageman, Deputy Assistant Director, Office of Regulatory Affairs and Policy, U.S. Immigration and Customs Enforcement, Department of Homeland Security, 500 12th Street SW, Washington, DC 20536. Telephone 202– 732–6960 (this is not a toll-free number). SUPPLEMENTARY INFORMATION: I. Background A. Purpose of the Regulatory Action The Department of Homeland Security (DHS) published an interim final rule (IFR) on August 8, 2023,1 that established that DHS may electronically serve demand notices, and other bond notices for delivery, order of supervision, or voluntary departure bonds for obligors who consent to electronic service. See 8 CFR 103.6(g) and (h). This final rule adopts the IFR provisions in 8 CFR 103.6(g) and (h) to electronically serve bond-related notices to obligors who consent to electronic service. This final rule also amends typographical errors, updates terminology for accuracy, and restructures regulatory text for clarity and consistency in 8 CFR 103.6(g) and (h). This final rule introduces no substantive changes from the IFR. B. Legal Authority The Homeland Security Act of 2002, Public Law 107–296, section 102, 116 Stat. 2135 (Nov. 25, 2002), 6 U.S.C. 112, and the Immigration and Nationality Act of 1952 (INA), as amended, section 103(a)(1), 8 U.S.C. 1103(a)(1), charge the Secretary of DHS (the Secretary) with administration and enforcement of the immigration and naturalization laws. The Secretary promulgates this final rule under the broad authority to administer DHS, and the authorities provided under the Homeland Security Act of 2002, the immigration and nationality laws, and other delegated authority. Over the past twenty years, Congress and the Executive Branch have promoted the use of electronic transactions and electronic records when feasible instead of relying solely upon in-person or paper transactions. 1 Immigration Bond Notifications, 88 FR 53358 (Aug. 8, 2023). E:\FR\FM\06JAR1.SGM 06JAR1

Agencies

[Federal Register Volume 90, Number 3 (Monday, January 6, 2025)]
[Rules and Regulations]
[Pages 531-535]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-31140]



========================================================================
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 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 

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Federal Register / Vol. 90, No. 3 / Monday, January 6, 2025 / Rules 
and Regulations

[[Page 531]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 800

[Doc. No. AMS-FGIS-24-0027]
RIN 0581-AE31


Formulas for Calculating Hourly and Unit Fees for FGIS Services

AGENCY: Agricultural Marketing Service, Department of Agriculture 
(USDA).

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Agricultural Marketing Service (AMS), Federal Grain 
Inspection Service (FGIS or Service) is amending its user fee 
regulations to establish standardized formulas the agency will use to 
calculate hourly and unit fees. The changes allow FGIS to charge 
reasonable fees sufficient to cover the costs of providing official 
services and re-establish a 3-to 6-month operating reserve, as required 
by the United States Grain Standards Act (USGSA). This final rule also 
makes specified conforming changes and minor technical changes to 
correct two typographical errors.

DATES: This final rule is effective February 5, 2025.

FOR FURTHER INFORMATION CONTACT: Denise Ruggles, Executive Program 
Analyst, USDA, AMS, FGIS, Telephone: 816-702-3897, Email: 
[email protected]; or Anthony Goodeman, Senior Policy Advisor, 
USDA, AMS, FGIS, Telephone: 202-720-2091, Email: 
[email protected].

SUPPLEMENTARY INFORMATION:  This final rule supersedes the provisions 
of the interim final rule titled ``Fees for Official Inspection and 
Weighing Services under the United Stated Grain Standards Act,'' and 
all associated rulemakings, and amends FGIS's user fee regulations to 
establish new formulas to calculate hourly and unit fees. The new 
formulas, which are similar to the standardized formulas used in other 
AMS user-fee funded grading programs, amend the regulations at 7 CFR 
800.71. The formulas will enable the agency to sustain operations and 
comply with the USGSA, which requires FGIS to charge fees sufficient to 
cover the costs of the official services it provides and to adjust fees 
annually in order to maintain an operating reserve of not less than 3 
and not more than 6 months. Prospective customers can find FGIS's fee 
schedules posted on AMS's public website at: https://www.ams.usda.gov/about-ams/fgis-program-directives.

Comment Review

    An interim final rule concerning user fees for grain inspection and 
weighing services was published in the Federal Register on June 6, 2024 
(89 FR 48257). The interim final rule was effective on July 8, 2024. A 
proposed rule concerning fee formulas by which FGIS would calculate 
future grain inspection and weighing fees was published October 8, 2024 
(89 FR 81396). Copies of the interim rule and proposed rule were sent 
via email to FGIS stakeholders. The interim rule and proposed rule were 
also made available through the internet by AMS via https://www.regulations.gov. AMS provided a 30-day comment period, ending July 
8, 2024, to give interested persons an opportunity to respond to the 
interim final rule, and a 45-day comment period, ending November 22, 
2024, to give interested persons an opportunity to respond to the 
proposed rule.
    FGIS received one comment to the proposed rule jointly submitted by 
two trade organizations. One of the trade organizations represents 
grain, feed, processing, exporting, and other grain handling companies 
who collectively operate over 8,000 facilities. The other trade 
association represents private and publicly owned companies and farmer-
owned cooperatives that are involved in, and provide services to, the 
agri-bulk products international trading industry.

Proposed Rule for Calculating Hourly Rates and Unit Fees

    Two trade associations expressed support for the proposed rule fee 
formulas in a joint comment. Their comment urged FGIS to maintain 
transparency regarding the calculation data and to regularly share this 
information with industry stakeholders. By increasing the flow of 
information, the comment conveyed that stakeholders can collaborate 
more effectively with FGIS to discover additional solutions that meet 
current market rates and requirements. The comment reiterated, similar 
to feedback on FGIS's interim final rule that revised its user fees, 
that significant increases in fees paid by industry are unsustainable. 
Concern was expressed that there is too little transparency in the 
existing calculation process, which makes it ``difficult for both the 
FGIS and [stakeholders] to budget and plan for services provided. User 
fees should be predictable and market-based to provide enough funding 
and properly reflect the work performed.'' The comment also suggested 
that FGIS uncouple hourly fee calculations from the existing five-year 
rolling average calculation used for tonnage fees.
    FGIS agrees with the comment. The formulas adopted in this final 
rule will ensure greater transparency regarding the calculation of 
hourly rates for industry participants, as well as help mitigate large, 
one-time increases. This final rule also separates the calculation of 
hourly rates from the five-year rolling average calculation for tonnage 
fees.
    After consideration of all relevant material presented in the 
comment and other available information, FGIS has determined that it is 
appropriate to finalize the proposed rule, as published in the Federal 
Register on October 8, 2024 (89 FR 81396), without change.

Conforming Regulatory Changes

    In an interim rule published in the June 6, 2024, edition of the 
Federal Register (89 FR 48257), FGIS established revised fees for the 
remainder of 2024 (and until new fees are established using the 
formulas in this final rule). To implement the revised fees, the 
interim rule imposed a stay on Sec. Sec.  800.71 and 800.72(b). To 
amend these sections, this rulemaking lifts the stay imposed on them by 
the interim rule.
    This rule also makes certain conforming changes in 7 CFR part 800. 
Specifically, this rule restores references to Sec. Sec.  800.71 and 
800.72 that were amended by the interim rule. In order to implement 
revised fees for 2024, the interim rule replaced references to Sec.  
800.71, which was stayed, with references to a newly added temporary 
section, Sec.  800.74. Because Sec.  800.72(b)

[[Page 532]]

was also stayed, the interim rule replaced a reference to that section 
in Sec.  800.73(d) with a reference to Sec. Sec.  800.72(a) and 800.74. 
As this final rule revises Sec.  800.71 to incorporate the formulas, 
these internal substitutions are no longer needed. Accordingly, this 
rule replaces references to Sec.  800.74 with references to Sec.  
800.71 in Sec. Sec.  800.34, 800.36, 800.156(d)(5), and 800.197(b)(3). 
This rule also replaces the reference to Sec. Sec.  800.72(a) and 
800.74 in Sec.  800.73(d) with a reference to Sec.  800.72. Finally, 
because the changes to Sec.  800.71 will render Sec.  800.74 obsolete, 
this rule also removes that section.

Technical Corrections

    This rule also corrects two typographical errors--a reference to 5 
U.S.C. 6103 and a reference to Executive Order 10358--in the definition 
of Holiday in 7 CFR 800.0--Meaning of terms. These corrections do not 
create new or amend existing requirements or interpretations.

Required Regulatory Analyses

Executive Orders 12866, 13563, and 14094

    This rule is being issued in conformance with Executive Order 
12866, ``Regulatory Planning and Review,'' Executive Order 13563, 
``Improving Regulation and Regulatory Review,'' and Executive Order 
14094, ``Modernizing Regulatory Review.'' Executive Orders 12866 and 
13563 direct agencies to assess all costs and benefits of available 
regulatory alternatives and, if regulation is necessary, to select 
regulatory approaches that maximize net benefits (including potential 
economic, environmental, public health and safety effects, distributive 
impacts, and equity). Executive Order 13563 emphasizes the importance 
of quantifying both costs and benefits, reducing costs, harmonizing 
rules, and promoting flexibility. Executive Order 14094 reaffirms, 
supplements, and updates Executive Order 12866 and further directs 
agencies to solicit and consider input from a wide range of affected 
and interested parties through a variety of means.
    The Office of Management and Budget (OMB) has designated this rule 
as not significant under Executive Orders 12866, 13563, and 14094. 
Accordingly, OMB has not reviewed this rule under those orders. Since 
grain export volume can vary significantly from year to year, 
estimating the impact of future fee changes can be difficult. FGIS 
recognizes the need to provide predictability to the industry for 
inspection and weighing fees. The statutory requirement to maintain an 
operating reserve between 3 to 6 months of operating expenses ensures 
that FGIS can adequately cover its costs without imposing an undue 
burden on its customers.
    FGIS regularly reviews its user-fee financed programs to determine 
whether the fees charged for performing official inspection and 
weighing services adequately cover the costs of providing those 
services. Due to limitations in the current regulations (7 CFR 
800.71(b)(3)), which permit fee increases of no more than 5 percent per 
year, combined with four years of rate decreases, and noneconomic 
factors that led to the 2020-2023 period having highest inflation in 
more than 40 years,\1\ FGIS faced an operating deficit that was 
forecasted to grow without corrective action.
---------------------------------------------------------------------------

    \1\ For example, the Consumer Price Index (CPI) Calculator 
(https://data.bls.gov/cgi-bin/cpicalc.pl) shows prices up 20 percent 
between January 2020 and February 2024, and up 31 percent between 
January 2016 and February 2024.
---------------------------------------------------------------------------

    This rule revises the formulas under which FGIS adjusts fees 
annually to ensure stability of the program. The rule will also ensure 
that FGIS complies with the USGSA, which requires the agency to charge 
fees sufficient to cover its costs and maintain a 3- to 6-month 
operating reserve. FGIS will continue to seek out cost-saving measures 
and implement appropriate changes to reduce its costs to provide 
alternatives to fee increases.
    This rule is unlikely to have an annual effect of $200 million or 
more or adversely affect the economy. FGIS has operated at a net loss 
for five consecutive years, and even with the maximum fee increases 
permitted under the current regulations, the agency has been unable to 
reduce the deficits and rebuild the operating reserve. While FGIS's 
interim final rule, published previously in the Federal Register (89 FR 
48257), addresses the agency's current deficit, this rule seeks to 
prevent additional deficits in future years by revising FGIS's user fee 
regulations to enable more accurate calculation of its costs and 
greater flexibility in future rate changes.
    FGIS believes that the U.S. grain industry will be best served by 
revising the regulation at 7 CFR 800.71, which addresses the 
calculation of fees for official inspection and weighing services 
performed by FGIS in the U.S. and Canada. The industry is already 
familiar with the annual process for evaluating and updating fees and 
anticipates the changes in this rule. This rule allows FGIS to continue 
providing mandatory and voluntary grain inspection services that 
facilitate international and domestic trade. This rule also allows FGIS 
to adjust fees in the future in response to unforeseeable climate, 
logistical, and market conditions, and to maintain required operating 
reserves.

Regulatory Flexibility Analysis

    Under the requirements set forth in the Regulatory Flexibility Act 
(RFA) (5 U.S.C. 601-12), FGIS has considered the economic impact of 
this final rule on small entities. Accordingly, FGIS has prepared this 
regulatory flexibility analysis. 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.
    The Small Business Administration (SBA) defines small businesses by 
their North American Industry Classification System Codes (NAICS). This 
final rule will affect customers of FGIS's official inspection and 
weighing services in the domestic and export grain markets (NAICS code 
115114). Current guidance from the SBA provides a revenue cutoff at $34 
million to differentiate large and small firms in this industry. Fees 
for the program which apply to this industry are provided on the FGIS 
website.
    Under the USGSA, all grain exported from the United States must be 
officially inspected and weighed, with few exceptions. FGIS provides 
mandatory inspection and weighing services at 29 export facilities in 
the United States. Five delegated State agencies provide mandatory 
inspection and weighing services at 20 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.
    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 and 
800.31 define a foreign commerce grain business as the business of 
regularly buying, handling, weighing, or transporting grain for sale in 
foreign commerce totaling 15,000 metric tons or more during the 
preceding or current calendar year. Currently, there are 174 businesses 
registered to export grain, most of which are not small businesses.
    Although most exporters are not small businesses, most users of 
FGIS's official inspection and weighing services

[[Page 533]]

(which include domestic grain businesses as well as exporters) meet the 
SBA requirements for small entities. Data on user fee receipts from 
FGIS for the past 5 years, plus 2024 through February, show a total of 
2,123 different accounts over this time, though many firms are 
represented by multiple accounts. For the purpose of this regulatory 
flexibility analysis, FGIS will consider accounts as representing 
establishments, with multiple establishments associated with larger 
firms.
    FGIS identified a total of 31 large firms, as defined by the SBA 
firm size classification of receipts in excess of $34 million. FGIS 
also identified the total number of establishments affiliated with the 
31 large firms to be 133. With a total number of establishments of 
2,123, this means 1,990, or 94 percent, of the establishments that paid 
fees to FGIS over the 2019-2024 period are small businesses according 
to the SBA definition.
    Table 1 shows that while only 6 percent of the firms are considered 
large, in total they have contributed the vast majority of the fees 
paid to the program. In each of the five previous years, and for the 
year 2024 to date, the 31 large firms paid between 86 and 90 percent of 
all FGIS fees, with an average of 89 percent. The remaining 1,990 
establishments paid on average 11 percent of total fees.

Table 1--FGIS Billed Accounts Summary Table for Regulatory Flexibility Analysis by Small Business Administration
                                               Size Classification
----------------------------------------------------------------------------------------------------------------
                                                 All firms          Large firms                Small firms
                                              ------------------------------------------------------------------
                 Fiscal year                    Total fees    Total fees    Share paid   Total fees   Share paid
                                                   paid          paid          (%)          paid         (%)
----------------------------------------------------------------------------------------------------------------
2019.........................................   $32,314,848   $27,694,899           86   $4,619,949           14
2020.........................................    30,746,015    27,386,467           89    3,359,547           11
2021.........................................    34,320,110    30,693,195           89    3,626,915           11
2022.........................................    31,663,547    28,183,027           89    3,480,520           11
2023.........................................    27,734,760    25,069,234           90    2,665,526           10
Oct 2023-Feb 2024............................    10,702,712     9,679,943           90    1,022,769           10
                                              ------------------------------------------------------------------
    Grand Total..............................   167,481,991   148,706,765           89   18,775,226           11
----------------------------------------------------------------------------------------------------------------

    The amendments to FGIS's user fee regulations will not change the 
relative burden of fees on small businesses. The provisions of this 
final rule will apply equally to all entities. In addition, use of 
standardized user-fee rate calculations will benefit all inspection 
applicants, regardless of size, as fees will more closely reflect the 
current costs of inspections, and the fee calculation process will be 
more transparent. Through its annual review, FGIS will be able to 
monitor the financial status of the grain inspection and weighing 
program to determine whether further adjustments are necessary. 
Finally, this final rule will not impose additional reporting, record 
keeping, or other compliance requirements on small entities. FGIS has 
not identified any other Federal rules which may duplicate, overlap, or 
conflict with this final rule.

Executive Order 12988

    This final rule has been reviewed under Executive Order 12988--
Civil Justice Reform. It is not intended to have retroactive effect. 
Section 18 of the USGSA (7 U.S.C. 87g) provides that no State or 
subdivision thereof may require or impose any requirements or 
restrictions concerning the inspection, weighing, or description of 
grain under the USGSA. Otherwise, this final rule will not preempt any 
State or local laws, regulations, or policies unless they present an 
irreconcilable conflict with this final rule. There are no 
administrative procedures that must be exhausted prior to any judicial 
challenge to the provisions of this final rule.

Executive Order 13175

    This final rule has been reviewed under Executive Order 13175--
Consultation and Coordination with Indian Tribal Governments, which 
requires agencies to consider whether their rulemaking actions would 
have Tribal implications. FGIS has determined that this final rule is 
unlikely to have substantial direct effects on one or more Indian 
Tribes, on the relationship between the Federal Government and Indian 
Tribes, or on the distribution of power and responsibilities between 
the Federal Government and Indian Tribes.

Congressional Review Act

    Pursuant to the Congressional Review Act (5 U.S.C. 801-808), the 
Office of Information and Regulatory Affairs designated this final rule 
as not a major rule, as defined by 5 U.S.C. 804(2).

E-Government Act

    USDA is committed to complying with the provisions of the E-
Government Act (44 U.S.C. 3601-3616) by promoting 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.

Paperwork Reduction Act

    This final rule will not impose any additional reporting or 
recordkeeping requirements on either small or large FGIS customers. In 
compliance with the Paperwork Reduction Act of 1995 (44 U.S.C. chapter 
35), FGIS reports and forms are periodically reviewed to reduce 
information collection requirements and duplication.

List of Subjects in 7 CFR Part 800

    Administrative practice and procedure, Conflict of interests, 
Exports, Freedom of information, Grains, Intergovernmental relations, 
Penalties, Reporting and recordkeeping requirements.

    For the reasons set forth in the preamble, the Agricultural 
Marketing Service 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.


Sec.  800.0   [Amended]

0
2. In Sec.  800.0, in paragraph (b), in the definition of ``Holiday'', 
remove the text

[[Page 534]]

``Under section 610 and Executive Order No. 10357'' and add, in its 
place, the text ``Under section 6103 and Executive Order 10358''.


Sec.  800.34   [Amended]

0
3. In Sec.  800.34, in the first sentence, remove the citation ``Sec.  
800.74'' and add, in its place, the citation ``Sec.  800.71''.


Sec.  800.36   [Amended]

0
4. In Sec.  800.36, in the last sentence, remove the citation ``Sec.  
800.74'' and add, in its place, the citation ``Sec.  800.71''.

0
5. Amend Sec.  800.71 by lifting the stay and revising the section to 
read as follows:


Sec.  800.71   Fees assessed by the Service.

    (a) Official inspection and weighing services. The fees described 
for Direct Service in paragraph (a)(1) of this section apply to 
official inspection and weighing services performed by the Service in 
the U.S. and Canada. The fees described for Supervision in 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) Direct Service--Fees for official inspection and weighing 
services performed by the Service in the United States and Canada. For 
each calendar year, the Service will calculate Direct Service fees as 
provided in paragraphs (b) and (c) of this section. The Service will 
publish a notice in the Federal Register and post Direct Service fees 
on its public website.
    (2) Supervision--Fees for supervision of official inspection and 
weighing services performed by delegated States and designated agencies 
in the United States. The Service will assess a Supervision fee per 
metric ton of domestic U.S. grain shipments inspected or weighed, or 
both, including land carrier shipments to Canada and Mexico. For each 
calendar year, the Service will calculate Supervision fees as provided 
in paragraph (d) of this section. The Service will publish a notice in 
the Federal Register and post the Supervision fees on its public 
website.
    (b) Annual review of tonnage fees. For each calendar year, the 
Service will review and adjust fees included in this section and 
publish fees each year according to the following:
    (1) Tonnage fees. Tonnage fees for Direct Service in paragraph 
(a)(1) of this section will consist of the national tonnage fee and 
local tonnage fees and the Service will calculate and round the fee to 
the nearest $0.001 per metric ton. All outbound grain officially 
inspected and/or weighed by the Field Offices 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) [Reserved]
    (c) Annual review of hourly and unit fees. The Service will 
calculate the rate for program services, per hour per program employee 
using the following formulas:
    (1) Regular rate. The total direct pay of program personnel 
performing grading, weighing, laboratory services, and equipment 
testing divided by the total direct hours for the previous year, which 
is then multiplied by the next year's percentage cost-of-living 
increase, plus the benefits rate, plus the operating rate, plus the 
allowance for bad debt rate. If applicable, travel expenses will be 
added to the cost of providing the service through the operating rate 
or the travel will be billed separately.
    (2) Overtime rate. The total direct pay of program personnel 
performing grading, weighing, laboratory services, and equipment 
testing divided by the total direct hours for the previous year, which 
is then multiplied by the next year's percentage cost-of-living 
increase and then multiplied by 1.5, plus the benefits rate, plus the 
operating rate, plus the allowance for bad debt rate. If applicable, 
travel expenses will be added to the cost of providing the service 
through the operating rate or the travel will be billed separately.
    (3) Holiday rate. The total direct pay of program personnel 
performing grading, weighing, laboratory services, and equipment 
testing divided by the total direct hours for the previous year, which 
is then multiplied by the next year's percentage cost-of-living 
increase and then multiplied by 2, plus the benefits rate, plus the 
operating rate, plus the allowance for bad debt rate. If applicable, 
travel expenses will be added to the cost of providing the service 
through the operating rate or the travel will be billed separately.
    (4) Benefits rate, operating rate, and allowance for bad debt rate. 
For each calendar year, based on previous fiscal year costs, the 
Service will calculate the benefits rate, operating rate, and allowance 
for bad debt rate as follows:
    (i) Benefits rate. The total direct benefits costs of program 
personnel performing grading, weighing, laboratory services, and 
equipment testing divided by the total hours (regular, overtime, and 
holiday) worked, which is then multiplied by the next calendar year's 
percentage cost-of-living increase.
    (ii) Operating rate. The total operating costs of program personnel 
performing grading, weighing, laboratory services, and equipment 
testing divided by total hours (regular, overtime, and holiday) worked, 
which is then multiplied by the percentage of inflation.
    (iii) Allowance for bad debt rate. The total allowance for bad debt 
for personnel performing grading, weighing, laboratory services, and 
equipment testing divided by total hours (regular, overtime, and 
holiday) worked.
    (5) Cost of living and inflation factors. The Service will use the 
most recent economic factors released by the Office of Management and 
Budget for budget development purposes to derive the cost-of-living 
expenses and percentage of inflation factors used in the formulas in 
this section.
    (6) Operating reserve adjustment. The Service will review the 
operating reserve at the end of each fiscal year and adjust the fees as 
needed to ensure an operating reserve of 3 to 6 months of expenses. 
This adjustment is included in the calculation for operating cost.

[[Page 535]]

    (d) Annual review of Supervision fees. Fees for Supervision in 
paragraph (a)(2) of this section will be set according to the 
following:
    (1) Supervision tonnage fee. The supervision tonnage fee is the sum 
of the prior fiscal year program costs plus an operating reserve 
adjustment divided by the average yearly tons of domestic U.S. grain 
shipments inspected or weighed, or both, including land carrier 
shipments to Canada and Mexico, during the previous 5 fiscal years. If 
the calculated value is zero or a negative value, the Service will 
suspend the collection of supervision tonnage fees for 1 calendar year.
    (2) Operating reserve adjustment. The operating reserve adjustment 
is the supervision program costs for the previous fiscal year divided 
by 2, less the end of previous fiscal year operating reserve balance.
    (e) Periodic review. The Service will periodically review and 
adjust all Direct Service and Supervision fees 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 paragraphs (b) 
through (d) of this section.
    (f) Miscellaneous fees for other services. For each calendar year, 
the Service will review fees included in this section and publish fees 
in the Federal Register and on its public website.
    (1) Registration certificates and renewals. The fee for 
registration certificates and renewals will be published annually in 
the Federal Register and on the Service's public website, and the 
Service will calculate the fee using the noncontract hourly rate 
published pursuant to paragraph (a)(1) of this section multiplied by 5. 
If you operate a business that buys, handles, weighs, or transports 
grain for sale in foreign commerce, or you are in a control 
relationship with respect to a business that buys, handles, weighs, or 
transports grain for sale in interstate commerce, you must complete an 
application and pay the published fee.
    (2) Designation amendments. The fee for amending designations will 
be published annually in the Federal Register and on the Service's 
public website. The Service will calculate the fee using the cost of 
publication plus 1 hour at the noncontract hourly rate. If submitting 
an application to amend a designation, the published fee must be paid.

0
6. In Sec.  800.72:
0
a. Lift the stay on paragraph (b); and
0
b. Revise paragraph (b).
    The revision reads as follows:


Sec.  800.72  Explanation of additional service fees for services 
performed in the United States only.

* * * * *
    (b) In addition to a 2-hour minimum charge for service on 
Saturdays, Sundays, and holidays, an additional charge will be assessed 
when the revenue from the services in Sec.  800.71(a)(1) does not equal 
or exceed what would have been collected at the applicable hourly rate. 
The additional charge will be the difference between the actual unit 
fee revenue and the hourly fee revenue. Hours accrued for travel and 
standby time shall apply in determining the hours for the minimum fee.


Sec.  800.73  [Amended]

0
7. In Sec.  800.73, in paragraph (d), remove the citation ``Sec. Sec.  
800.72(a) and 800.74'' and add, in its place, the citation ``Sec.  
800.72''.


Sec.  800.74  [Removed]

0
8. Remove Sec.  800.74.


Sec.  800.156  [Amended]

0
9. In Sec.  800.156, in paragraph (d)(5), in the last sentence, remove 
the citation ``Sec.  800.74'' and add, in its place, the citation 
``Sec.  800.71''.


Sec.  800.197  [Amended]

0
10. In Sec.  800.197, in paragraph (b)(3), remove the citation ``Sec.  
800.74'' and add, in its place, the citation ``Sec.  800.71''.

Melissa Bailey,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2024-31140 Filed 1-3-25; 8:45 am]
BILLING CODE P

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