80_FR_15754 80 FR 15697 - Small Business Timber Set Aside Program

80 FR 15697 - Small Business Timber Set Aside Program

SMALL BUSINESS ADMINISTRATION

Federal Register Volume 80, Issue 57 (March 25, 2015)

Page Range15697-15699
FR Document2015-06557

The U.S. Small Business Administration (SBA or Agency) is seeking comments on possible amendments to its Small Business Timber Set-Aside Program (the Program) regulations. The Small Business Timber Set-Aside Program is rooted in the Small Business Act, which tasked SBA with ensuring that small businesses receive a fair proportion of the total sales of government property. Several timber industry stakeholders have petitioned SBA to make changes to the Program because they believe that the current regulations do not provide adequate protections to ensure that small businesses maintain a fair share of the National Forest timber sale market. In response, SBA, in consultation with the United States Forest Service, is seeking comment on several issues to assist the agency in formulating potential regulatory proposals. SBA will share the comments received in response to this advance notice of proposed rulemaking with the United States Forest Service for their use in determining whether, and if so how, to make any corresponding changes to the United States Forest Service Handbook. First, SBA seeks comments on the possibility of including saw timber volume sold as part of a stewardship timber or stewardship services contract in the calculation of the timber sale share of small business. Second, SBA seeks comments on how timber sale appraisals should be performed for small business set aside sales and associated costs and benefits to stakeholders. The SBA is also seeking input on various policy options.

Federal Register, Volume 80 Issue 57 (Wednesday, March 25, 2015)
[Federal Register Volume 80, Number 57 (Wednesday, March 25, 2015)]
[Proposed Rules]
[Pages 15697-15699]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-06557]


========================================================================
Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

========================================================================


Federal Register / Vol. 80, No. 57 / Wednesday, March 25, 2015 / 
Proposed Rules

[[Page 15697]]



SMALL BUSINESS ADMINISTRATION

13 CFR Part 121

RIN 3245-AG69


Small Business Timber Set Aside Program

AGENCY: U.S. Small Business Administration.

ACTION: Advance notice of proposed rulemaking.

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

SUMMARY: The U.S. Small Business Administration (SBA or Agency) is 
seeking comments on possible amendments to its Small Business Timber 
Set-Aside Program (the Program) regulations. The Small Business Timber 
Set-Aside Program is rooted in the Small Business Act, which tasked SBA 
with ensuring that small businesses receive a fair proportion of the 
total sales of government property. Several timber industry 
stakeholders have petitioned SBA to make changes to the Program because 
they believe that the current regulations do not provide adequate 
protections to ensure that small businesses maintain a fair share of 
the National Forest timber sale market. In response, SBA, in 
consultation with the United States Forest Service, is seeking comment 
on several issues to assist the agency in formulating potential 
regulatory proposals. SBA will share the comments received in response 
to this advance notice of proposed rulemaking with the United States 
Forest Service for their use in determining whether, and if so how, to 
make any corresponding changes to the United States Forest Service 
Handbook. First, SBA seeks comments on the possibility of including saw 
timber volume sold as part of a stewardship timber or stewardship 
services contract in the calculation of the timber sale share of small 
business. Second, SBA seeks comments on how timber sale appraisals 
should be performed for small business set aside sales and associated 
costs and benefits to stakeholders. The SBA is also seeking input on 
various policy options.

DATES: Comments must be received on or before May 26, 2015.

ADDRESSES: You may submit comments, identified by RIN: 3245-AG69, by 
any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     For mail, paper, disk, or CD/ROM submissions: Brenda J. 
Fernandez, Procurement Analyst, U.S. Small Business Administration, 
Office of Policy, Planning and Liaison, 409 Third Street SW., 8th 
Floor, Washington, DC 20416.
     Hand Delivery/Courier: Brenda J. Fernandez, Procurement 
Analyst, U.S. Small Business Administration, Office of Policy, Planning 
and Liaison, 409 Third Street SW., 8th Floor, Washington, DC 20416.
    SBA will post all comments on www.regulations.gov. If you wish to 
submit confidential business information (CBI) as defined in the User 
Notice at www.regulations.gov, please submit the information to: Brenda 
J. Fernandez, Procurement Analyst, U.S. Small Business Administration, 
Office of Policy, Planning and Liaison, 409 Third Street SW., 8th 
Floor, Washington, DC 20416, or send an email to 
[email protected]. Highlight the information that you consider 
to be CBI and explain why you believe SBA should hold this information 
as confidential. SBA will review the information and make the final 
determination on whether it will publish the information.

FOR FURTHER INFORMATION CONTACT: Brenda J. Fernandez, Procurement 
Analyst, Office of Policy, Planning and Liaison, 409 Third Street SW., 
Washington, DC 20416; (202) 205-7337; [email protected].

SUPPLEMENTARY INFORMATION: The Forest Service, an agency of the federal 
government sells saw logs in accordance with the Small Business Act 
(Pub. L. 85-536 as amended) and the National Forest Management Act 
(Pub. L. 94-588 as amended). Timber is regularly sold from the federal 
forests managed by the U.S. Department of Agriculture's Forest Service 
(USDA/FS) and the U.S. Department of the Interior's Bureau of Land 
Management (DOI/BLM). On occasion, timber is sold from federal forests 
which are under the supervision of the U.S. Department of the 
Interior's U.S. Fish and Wildlife Service, the U.S. Department of 
Defense, the U.S. Department of Energy, and the Tennessee Valley 
Authority. Collectively, these agencies are considered the ``sales 
agencies.'' SBA and the sales agencies jointly set aside timber sales 
for bidding by small concerns when market data demonstrates that small 
businesses would not obtain their fair share under open sales. In 1971, 
USDA and SBA signed a Memorandum of Understanding (MOU) intended to 
accomplish the declared policy of Congress that a fair proportion of 
the total sales of Government property be made to small business 
enterprises defined by SBA (Small Business Act. 15 U.S.C. 631, et 
seq.). In the 1980s and 1990s, efforts to protect species habitat and 
watersheds in compliance with federal law and regulation resulted in 
dramatic changes to the United States timber industry. These changes 
included reduced timber harvests on Federal and private lands which in 
turn caused market failures for timber mills that could not adapt and 
retool. As a result, many small timber mills (western mills in 
particular) have been forced to close. As such, the Small Business 
Timber Set-Aside Program has become increasingly important to ensure 
that a ``fair proportion'' of Federal timber is available for purchase 
by qualified small business concerns.
    SBA is soliciting public comment on the Small Business Timber Set-
Aside Program to help the agency determine what, if any, changes should 
be proposed. Specifically, SBA is soliciting public comments on methods 
to include stewardship sales in the calculation of the timber sale 
share for small business and considerations for how timber sale 
appraisals are performed for small business set-aside sales. These 
possible amendments would not impact the DOI/BLM's Timber Sale and 
Forest Management Programs. DOI/BLM's small business set-asides, which 
are limited to 8 markets in Oregon, are made in accordance with the 
terms of a separate MOU between SBA and DOI/BLM. Rather than setting 
forth computation methods for small business market share 
considerations, SBA's MOU with DOI/BLM affords SBA the opportunity to 
review DOI/BLM annual timber sale plans prior to publication

[[Page 15698]]

and to request set-asides under the authority of the Small Business 
Act. When DOI/BLM agrees to set aside certain timber sales, DOI/BLM 
consults with SBA concerning financial and other performance 
qualifications to be included in the conditions of sale. While DOI/BLM 
utilizes various stewardship contracting vehicles, the regulatory 
amendments contemplated by SBA will not impact DOI/BLM's use of 
stewardship contracting. Further, DOI's current policy regarding small 
business set-aside timber sales is to appraise the hauling costs to the 
closest mill that qualifies as a small business under SBA's definition 
located in.
    Saw logs are sold through conventional timber sales and through 
stewardship contracting. The stewardship contracting program was 
established by Section 347 of the FY1999 Omnibus Appropriations Act 
(Pub. L. 105-277) to help achieve land management goals on the national 
forests, and to help meet the needs of local and rural communities. 
Stewardship contracting is a goods-for-services arrangement that 
requires timber companies who cut trees on National Forest System lands 
to perform other service work in exchange for the timber volume. 
Integrated Resource Timber Contract (IRTC) formats were developed by 
the Forest Service for exclusive use in implementing stewardship 
contracting projects when the value of goods exceeds the cost of 
services. Integrated Resource Service Contract (IRSC) formats were 
developed by the Forest Service for exclusive use in implementing 
stewardship contracting projects when the cost of services exceeds the 
value of the goods. As demonstrated below, stewardship sales accounted 
for 31% of all timber (sawtimber plus non-sawtimber) sold by the FS in 
Fiscal Year 2013. This is the highest percentage of total sales in the 
last ten years. However, some stakeholders believe that certain FS 
Regions could/should do consistently better in making timber sales 
awards to small business.

                                                          Stewardship Timber/Service Sales Sold
                                                                     [FY 2004-2013]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                 Year (FY)                     R-1        R-2        R-3        R-4        R-5        R-6        R-8        R-9        R-10      All FS
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                       All sales, sawtimber + non-sawtimber (MMbf)
--------------------------------------------------------------------------------------------------------------------------------------------------------
2004......................................        159        163         49        107        208        434        359        319         85      1,883
2005......................................        243        132         72         49        386        392        414        364         54      2,105
2006......................................        189        165         69         68        228        470        858        381         83      2,511
2007......................................        135        198         57         69        272        489        501        352         29      2,101
2008......................................        186        201         43         70        109        525        539        349          4      2,026
2009......................................        216        199         21         41        236        498        476        319          6      2,011
2010......................................        180        196         46         60        252        424        540        358         45      2,100
2011......................................        149        159         54         46        212        464        556        379         37      2,056
2012......................................        144        196         32         53        219        512        521        419         41      2,137
2013......................................        115        210        129         71        229        527        475        393         13      2,162
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                         Stewardship timber/service sales (MMbf)
--------------------------------------------------------------------------------------------------------------------------------------------------------
2004......................................          7          9         25         12         23         19          0          0          0         96
2005......................................         12          9         17          7         23         30          4          2          1        105
2006......................................         48         16         18         15         24         64         42          4          0        231
2007......................................         44         16         28          9         62         91         34         23          1        308
2008......................................         64         35         21         12         14        100         28         10          1        284
2009......................................         45         38         15         11         54         96         62         22          0        343
2010......................................         56         70         26         38         75        120         50         50          0        486
2011......................................         43         33         31         21         47        105         62         50         33        427
2012......................................         41         35         19         22        102        175         92         67         40        592
2013......................................         36         39        107         51         75        202         90         61          0        661
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                      % Stewardship
--------------------------------------------------------------------------------------------------------------------------------------------------------
2004......................................          4          5         51         12         11          4          0          0          0          5
2005......................................          5          7         23         13          6          8          1          1          1          5
2006......................................         25         10         26         22         11         14          5          1          0          9
2007......................................         33          8         49         14         23         19          7          6          2         15
2008......................................         35         17         49         17         13         19          5          3         27         14
2009......................................         21         19         72         27         23         19         13          7          0         17
2010......................................         31         36         56         64         30         28          9         14          0         23
2011......................................         29         21         59         47         22         23         11         13          9         21
2012......................................         28         18         58         42         47         34         18         16         96         28
2013......................................         32         19         83         72         33         38         19         16          0         31
--------------------------------------------------------------------------------------------------------------------------------------------------------
Data Source: Timber Data Company; November 19, 2013.

    To help ensure a fair proportion of timber sales go to small 
businesses, timber sales must be set aside when small business 
participation falls below a certain amount. In determining this trigger 
amount, the FS calculates the amount of small business market share 
based on small business purchases of saw timber volume over a five-year 
period. This percentage, based upon historical purchases, sets the 
framework for what constitutes small businesses' fair proportion of the 
total sales volume. Currently, the computation of small business market 
share does not include saw logs from stewardship contracts. SBA is 
seeking comment on whether the calculation should also include saw

[[Page 15699]]

timber purchased through stewardship contracts. Specifically, SBA 
invites comments and supporting data in response to the following 
questions.

Stewardship Contracting Questions

    1. How should the FS include the saw timber volume on stewardship 
contracts awarded to small business in the computation of small 
business market share?
    2. How might including stewardship saw timber volume impact future 
market share calculations for small business concerns that participate 
in stewardship contracts and/or conventional timber sales?
    3. What are the potential impacts (costs and benefits) if SBA 
regulations at 13 CFR 121.506 were to include the saw timber volume 
from IRTCs and IRSCs in the calculation of small business market share?
    a. What is the anticipated impact of the inclusion of saw timber 
volume from stewardship contracts on stumpage prices?
    b. If inclusion of saw timber volume from stewardship contracts 
leads to lower stumpage prices, what is the impact to land management 
activities (paid for by stumpage prices) and retained receipts?
    c. What is the anticipated impact on sale values both from an 
agency perspective and a treasury perspective?
    4. What would be the most efficient and effective way to account 
for actual saw timber volume from stewardship contracts awarded to 
small business?
    5. Would an increase in the utilization of stewardship contracts in 
a market area result in a lower representation of small businesses 
successfully bidding for timber sales in that market area? Should this 
lead to lowering the market share for small business set-aside sales in 
that market area when the FS and SBA compute small business 
participation?
    6. Would including stewardship saw timber volume on contracts 
awarded to small business in the calculation result in more accurate 
representation of small business participation in the market area?
    Unrelated to stewardship contracting, SBA is also seeking public 
comments on potential amendments to its current regulations at 13 CFR 
121.507(a)(4)(i), which provides that on a set-aside timber sale, the 
small business may not resell more than 30% of the saw timber volume to 
a large business concern. When the FS offers any timber sale, it 
appraises the sale for its potential market value and sets the minimum 
bid that it will accept based on that appraisal. One factor in the 
appraisal is the haul cost that the purchaser (small or large) will 
absorb to bring the timber to a manufacturing facility. Currently, all 
appraisals are made to the nearest mill. In timber sales set aside for 
small businesses, large mills are ineligible to bid. In the context of 
a set-aside, if the nearest mill is a large mill, the appraisal will 
not accurately capture the haul cost to eligible bidders. As such, SBA 
is seeking public comment on whether the appraisal for a small business 
set-aside sale should be made to the nearest, small mill.

Set-aside Sale Appraisal Point Questions

    1. How can the actual haul costs to eligible small business timber 
set-aside purchasers be better reflected in the appraisal process?
    2. Should there be considerations for keeping the appraisal point 
to the nearest mill on a small business timber set-aside sale in those 
market areas that do not have mills that would qualify as ``small'' 
under the SBA criteria?
    3. How should the prohibition against small businesses reselling 
more than 30% of the saw timber volume to a large business concern be 
taken into account when making appraisals for small business timber 
set-aside sales?
    4. What is the financial impact to the Forest Service if the 30% 
rule is included in the appraisal point haul cost calculation of a 
small business timber set-aside sale?
    5. What is the anticipated impact on trust funds (e.g., Knutson-
Vandenberg), if any, if appraisals are made to a small mill rather than 
the closest processer.
    6. SBA is also requesting data on mill size and location.
    The SBA welcomes comments and any available data to help 
substantiate recommendations made in response to the foregoing general 
questions, or other potential policy options--including status quo--
that should be considered for the Small Business Timber Sales Set-Aside 
Program.

    Dated: March 16, 2015.
Maria Contreras-Sweet,
Administrator.
[FR Doc. 2015-06557 Filed 3-24-15; 8:45 am]
BILLING CODE 8025-01-P



                                                                                                                                                                                                   15697

                                                    Proposed Rules                                                                                                Federal Register
                                                                                                                                                                  Vol. 80, No. 57

                                                                                                                                                                  Wednesday, March 25, 2015



                                                    This section of the FEDERAL REGISTER                    stakeholders. The SBA is also seeking                 of the U.S. Department of the Interior’s
                                                    contains notices to the public of the proposed          input on various policy options.                      U.S. Fish and Wildlife Service, the U.S.
                                                    issuance of rules and regulations. The                  DATES: Comments must be received on                   Department of Defense, the U.S.
                                                    purpose of these notices is to give interested          or before May 26, 2015.                               Department of Energy, and the
                                                    persons an opportunity to participate in the                                                                  Tennessee Valley Authority.
                                                    rule making prior to the adoption of the final          ADDRESSES: You may submit comments,
                                                    rules.                                                  identified by RIN: 3245–AG69, by any of               Collectively, these agencies are
                                                                                                            the following methods:                                considered the ‘‘sales agencies.’’ SBA
                                                                                                              • Federal eRulemaking Portal: http://               and the sales agencies jointly set aside
                                                    SMALL BUSINESS ADMINISTRATION                           www.regulations.gov. Follow the                       timber sales for bidding by small
                                                                                                            instructions for submitting comments.                 concerns when market data
                                                    13 CFR Part 121                                            • For mail, paper, disk, or CD/ROM                 demonstrates that small businesses
                                                                                                            submissions: Brenda J. Fernandez,                     would not obtain their fair share under
                                                    RIN 3245–AG69                                           Procurement Analyst, U.S. Small                       open sales. In 1971, USDA and SBA
                                                                                                            Business Administration, Office of                    signed a Memorandum of
                                                    Small Business Timber Set Aside                         Policy, Planning and Liaison, 409 Third               Understanding (MOU) intended to
                                                    Program                                                 Street SW., 8th Floor, Washington, DC                 accomplish the declared policy of
                                                                                                            20416.                                                Congress that a fair proportion of the
                                                    AGENCY: U.S. Small Business                                • Hand Delivery/Courier: Brenda J.                 total sales of Government property be
                                                    Administration.                                         Fernandez, Procurement Analyst, U.S.                  made to small business enterprises
                                                    ACTION: Advance notice of proposed                      Small Business Administration, Office                 defined by SBA (Small Business Act. 15
                                                    rulemaking.                                             of Policy, Planning and Liaison, 409                  U.S.C. 631, et seq.). In the 1980s and
                                                                                                            Third Street SW., 8th Floor,                          1990s, efforts to protect species habitat
                                                    SUMMARY:   The U.S. Small Business                      Washington, DC 20416.                                 and watersheds in compliance with
                                                    Administration (SBA or Agency) is                          SBA will post all comments on                      federal law and regulation resulted in
                                                    seeking comments on possible                            www.regulations.gov. If you wish to                   dramatic changes to the United States
                                                    amendments to its Small Business                        submit confidential business                          timber industry. These changes
                                                    Timber Set-Aside Program (the Program)                  information (CBI) as defined in the User              included reduced timber harvests on
                                                    regulations. The Small Business Timber                  Notice at www.regulations.gov, please                 Federal and private lands which in turn
                                                    Set-Aside Program is rooted in the                      submit the information to: Brenda J.                  caused market failures for timber mills
                                                    Small Business Act, which tasked SBA                    Fernandez, Procurement Analyst, U.S.                  that could not adapt and retool. As a
                                                    with ensuring that small businesses                     Small Business Administration, Office                 result, many small timber mills (western
                                                    receive a fair proportion of the total                  of Policy, Planning and Liaison, 409                  mills in particular) have been forced to
                                                    sales of government property. Several                   Third Street SW., 8th Floor,                          close. As such, the Small Business
                                                    timber industry stakeholders have                       Washington, DC 20416, or send an email                Timber Set-Aside Program has become
                                                    petitioned SBA to make changes to the                   to brenda.fernandez@sba.gov. Highlight                increasingly important to ensure that a
                                                    Program because they believe that the                   the information that you consider to be               ‘‘fair proportion’’ of Federal timber is
                                                    current regulations do not provide                      CBI and explain why you believe SBA                   available for purchase by qualified small
                                                    adequate protections to ensure that                     should hold this information as                       business concerns.
                                                    small businesses maintain a fair share of               confidential. SBA will review the                        SBA is soliciting public comment on
                                                    the National Forest timber sale market.                 information and make the final                        the Small Business Timber Set-Aside
                                                    In response, SBA, in consultation with                  determination on whether it will                      Program to help the agency determine
                                                    the United States Forest Service, is                    publish the information.                              what, if any, changes should be
                                                    seeking comment on several issues to                    FOR FURTHER INFORMATION CONTACT:                      proposed. Specifically, SBA is soliciting
                                                    assist the agency in formulating                        Brenda J. Fernandez, Procurement                      public comments on methods to include
                                                    potential regulatory proposals. SBA will                Analyst, Office of Policy, Planning and               stewardship sales in the calculation of
                                                    share the comments received in                          Liaison, 409 Third Street SW.,                        the timber sale share for small business
                                                    response to this advance notice of                      Washington, DC 20416; (202) 205–7337;                 and considerations for how timber sale
                                                    proposed rulemaking with the United                     brenda.fernandez@sba.gov.                             appraisals are performed for small
                                                    States Forest Service for their use in                  SUPPLEMENTARY INFORMATION: The Forest                 business set-aside sales. These possible
                                                    determining whether, and if so how, to                  Service, an agency of the federal                     amendments would not impact the DOI/
                                                    make any corresponding changes to the                   government sells saw logs in accordance               BLM’s Timber Sale and Forest
                                                    United States Forest Service Handbook.                  with the Small Business Act (Pub. L.                  Management Programs. DOI/BLM’s
                                                    First, SBA seeks comments on the                        85–536 as amended) and the National                   small business set-asides, which are
                                                    possibility of including saw timber                     Forest Management Act (Pub. L. 94–588                 limited to 8 markets in Oregon, are
mstockstill on DSK4VPTVN1PROD with PROPOSALS




                                                    volume sold as part of a stewardship                    as amended). Timber is regularly sold                 made in accordance with the terms of a
                                                    timber or stewardship services contract                 from the federal forests managed by the               separate MOU between SBA and DOI/
                                                    in the calculation of the timber sale                   U.S. Department of Agriculture’s Forest               BLM. Rather than setting forth
                                                    share of small business. Second, SBA                    Service (USDA/FS) and the U.S.                        computation methods for small business
                                                    seeks comments on how timber sale                       Department of the Interior’s Bureau of                market share considerations, SBA’s
                                                    appraisals should be performed for                      Land Management (DOI/BLM). On                         MOU with DOI/BLM affords SBA the
                                                    small business set aside sales and                      occasion, timber is sold from federal                 opportunity to review DOI/BLM annual
                                                    associated costs and benefits to                        forests which are under the supervision               timber sale plans prior to publication


                                               VerDate Sep<11>2014   20:23 Mar 24, 2015   Jkt 235001   PO 00000   Frm 00001   Fmt 4702   Sfmt 4702   E:\FR\FM\25MRP1.SGM   25MRP1


                                                    15698                        Federal Register / Vol. 80, No. 57 / Wednesday, March 25, 2015 / Proposed Rules

                                                    and to request set-asides under the                           stewardship contracting. The                            the value of goods exceeds the cost of
                                                    authority of the Small Business Act.                          stewardship contracting program was                     services. Integrated Resource Service
                                                    When DOI/BLM agrees to set aside                              established by Section 347 of the                       Contract (IRSC) formats were developed
                                                    certain timber sales, DOI/BLM consults                        FY1999 Omnibus Appropriations Act                       by the Forest Service for exclusive use
                                                    with SBA concerning financial and                             (Pub. L. 105–277) to help achieve land                  in implementing stewardship
                                                    other performance qualifications to be                        management goals on the national                        contracting projects when the cost of
                                                    included in the conditions of sale.                           forests, and to help meet the needs of                  services exceeds the value of the goods.
                                                    While DOI/BLM utilizes various                                local and rural communities.                            As demonstrated below, stewardship
                                                    stewardship contracting vehicles, the                         Stewardship contracting is a goods-for-                 sales accounted for 31% of all timber
                                                    regulatory amendments contemplated
                                                                                                                  services arrangement that requires                      (sawtimber plus non-sawtimber) sold by
                                                    by SBA will not impact DOI/BLM’s use
                                                                                                                  timber companies who cut trees on                       the FS in Fiscal Year 2013. This is the
                                                    of stewardship contracting. Further,
                                                    DOI’s current policy regarding small                          National Forest System lands to perform                 highest percentage of total sales in the
                                                    business set-aside timber sales is to                         other service work in exchange for the                  last ten years. However, some
                                                    appraise the hauling costs to the closest                     timber volume. Integrated Resource                      stakeholders believe that certain FS
                                                    mill that qualifies as a small business                       Timber Contract (IRTC) formats were                     Regions could/should do consistently
                                                    under SBA’s definition located in.                            developed by the Forest Service for                     better in making timber sales awards to
                                                      Saw logs are sold through                                   exclusive use in implementing                           small business.
                                                    conventional timber sales and through                         stewardship contracting projects when

                                                                                                              STEWARDSHIP TIMBER/SERVICE SALES SOLD
                                                                                                                                   [FY 2004–2013]

                                                           Year (FY)                   R–1            R–2           R–3            R–4          R–5            R–6          R–8            R–9        R–10    All FS

                                                                                                                  All sales, sawtimber + non-sawtimber (MMbf)

                                                    2004   .........................      159               163          49          107            208           434            359         319         85     1,883
                                                    2005   .........................      243               132          72           49            386           392            414         364         54     2,105
                                                    2006   .........................      189               165          69           68            228           470            858         381         83     2,511
                                                    2007   .........................      135               198          57           69            272           489            501         352         29     2,101
                                                    2008   .........................      186               201          43           70            109           525            539         349          4     2,026
                                                    2009   .........................      216               199          21           41            236           498            476         319          6     2,011
                                                    2010   .........................      180               196          46           60            252           424            540         358         45     2,100
                                                    2011   .........................      149               159          54           46            212           464            556         379         37     2,056
                                                    2012   .........................      144               196          32           53            219           512            521         419         41     2,137
                                                    2013   .........................      115               210         129           71            229           527            475         393         13     2,162

                                                                                                                    Stewardship timber/service sales (MMbf)

                                                    2004   .........................           7             9           25              12          23            19              0              0       0        96
                                                    2005   .........................          12             9           17               7          23            30              4              2       1       105
                                                    2006   .........................          48            16           18              15          24            64             42              4       0       231
                                                    2007   .........................          44            16           28               9          62            91             34             23       1       308
                                                    2008   .........................          64            35           21              12          14           100             28             10       1       284
                                                    2009   .........................          45            38           15              11          54            96             62             22       0       343
                                                    2010   .........................          56            70           26              38          75           120             50             50       0       486
                                                    2011   .........................          43            33           31              21          47           105             62             50      33       427
                                                    2012   .........................          41            35           19              22         102           175             92             67      40       592
                                                    2013   .........................          36            39          107              51          75           202             90             61       0       661

                                                                                                                                   % Stewardship

                                                    2004   .........................           4             5            51             12           11              4            0              0       0         5
                                                    2005   .........................           5             7            23             13            6              8            1              1       1         5
                                                    2006   .........................          25            10            26             22           11             14            5              1       0         9
                                                    2007   .........................          33             8            49             14           23             19            7              6       2        15
                                                    2008   .........................          35            17            49             17           13             19            5              3      27        14
                                                    2009   .........................          21            19            72             27           23             19           13              7       0        17
                                                    2010   .........................          31            36            56             64           30             28            9             14       0        23
                                                    2011   .........................          29            21            59             47           22             23           11             13       9        21
                                                    2012   .........................          28            18            58             42           47             34           18             16      96        28
                                                    2013   .........................          32            19            83             72           33             38           19             16       0        31
                                                       Data Source: Timber Data Company; November 19, 2013.
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                                                       To help ensure a fair proportion of                        amount of small business market share                   fair proportion of the total sales volume.
                                                    timber sales go to small businesses,                          based on small business purchases of                    Currently, the computation of small
                                                    timber sales must be set aside when                           saw timber volume over a five-year                      business market share does not include
                                                    small business participation falls below                      period. This percentage, based upon                     saw logs from stewardship contracts.
                                                    a certain amount. In determining this                         historical purchases, sets the framework                SBA is seeking comment on whether the
                                                    trigger amount, the FS calculates the                         for what constitutes small businesses’                  calculation should also include saw



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                                                                          Federal Register / Vol. 80, No. 57 / Wednesday, March 25, 2015 / Proposed Rules                                           15699

                                                    timber purchased through stewardship                    the haul cost that the purchaser (small               COMMODITY FUTURES TRADING
                                                    contracts. Specifically, SBA invites                    or large) will absorb to bring the timber             COMMISSION
                                                    comments and supporting data in                         to a manufacturing facility. Currently,
                                                    response to the following questions.                    all appraisals are made to the nearest                17 CFR Parts 1, 15, 17, 19, 32, 37, 38,
                                                                                                            mill. In timber sales set aside for small             140, and 150
                                                    Stewardship Contracting Questions
                                                                                                            businesses, large mills are ineligible to             RIN 3038–AD99; 3038–AD82
                                                       1. How should the FS include the saw                 bid. In the context of a set-aside, if the
                                                    timber volume on stewardship contracts                  nearest mill is a large mill, the appraisal           Position Limits for Derivatives and
                                                    awarded to small business in the                                                                              Aggregation of Positions; Correction
                                                                                                            will not accurately capture the haul cost
                                                    computation of small business market
                                                                                                            to eligible bidders. As such, SBA is                  AGENCY: Commodity Futures Trading
                                                    share?
                                                       2. How might including stewardship                   seeking public comment on whether the                 Commission.
                                                    saw timber volume impact future                         appraisal for a small business set-aside              ACTION: Notice of proposed rulemaking;
                                                    market share calculations for small                     sale should be made to the nearest,                   provision of Table 11a; and reopening of
                                                    business concerns that participate in                   small mill.                                           comment periods; correction.
                                                    stewardship contracts and/or                            Set-aside Sale Appraisal Point
                                                    conventional timber sales?                                                                                    SUMMARY:   This is a correction to the
                                                                                                            Questions                                             preamble of a document published by
                                                       3. What are the potential impacts
                                                    (costs and benefits) if SBA regulations at                 1. How can the actual haul costs to                the Commodity Futures Trading
                                                    13 CFR 121.506 were to include the saw                  eligible small business timber set-aside              Commission (‘‘Commission’’) in the
                                                    timber volume from IRTCs and IRSCs in                   purchasers be better reflected in the                 Federal Register of February 25, 2015,
                                                    the calculation of small business market                appraisal process?                                    regarding the reopening of the comment
                                                    share?                                                                                                        periods for proposed rulemakings to
                                                       a. What is the anticipated impact of                    2. Should there be considerations for              establish speculative position limits for
                                                    the inclusion of saw timber volume                      keeping the appraisal point to the                    28 exempt and agricultural commodity
                                                    from stewardship contracts on stumpage                  nearest mill on a small business timber               futures and options contracts and the
                                                    prices?                                                 set-aside sale in those market areas that             physical commodity swaps that are
                                                       b. If inclusion of saw timber volume                 do not have mills that would qualify as               economically equivalent to such
                                                    from stewardship contracts leads to                     ‘‘small’’ under the SBA criteria?                     contracts (the ‘‘Position Limits
                                                    lower stumpage prices, what is the                         3. How should the prohibition against              Proposal’’) and to amend existing
                                                    impact to land management activities                    small businesses reselling more than                  regulations setting out the Commission’s
                                                    (paid for by stumpage prices) and                       30% of the saw timber volume to a large               policy for aggregation under its position
                                                    retained receipts?                                      business concern be taken into account                limits regime (the ‘‘Aggregation
                                                       c. What is the anticipated impact on                                                                       Proposal’’). This correction clarifies the
                                                                                                            when making appraisals for small
                                                    sale values both from an agency                                                                               closing date for the reopened comment
                                                                                                            business timber set-aside sales?
                                                    perspective and a treasury perspective?                                                                       periods, which was inadvertently set to
                                                       4. What would be the most efficient                     4. What is the financial impact to the             fall on a non-business day.
                                                    and effective way to account for actual                 Forest Service if the 30% rule is                     DATES: The comment periods for the
                                                    saw timber volume from stewardship                      included in the appraisal point haul                  Aggregation Proposal published
                                                    contracts awarded to small business?                    cost calculation of a small business                  November 15, 2013, at 78 FR 68946, and
                                                       5. Would an increase in the utilization              timber set-aside sale?                                for the Position Limits Proposal
                                                    of stewardship contracts in a market                                                                          published December 12, 2013, at 78 FR
                                                                                                               5. What is the anticipated impact on
                                                    area result in a lower representation of                                                                      75680, which reopened on February 26,
                                                                                                            trust funds (e.g., Knutson-Vandenberg),
                                                    small businesses successfully bidding                                                                         2015, will close on March 30, 2015.
                                                    for timber sales in that market area?                   if any, if appraisals are made to a small
                                                    Should this lead to lowering the market                 mill rather than the closest processer.               FOR FURTHER INFORMATION CONTACT:
                                                    share for small business set-aside sales                   6. SBA is also requesting data on mill             Stephen Sherrod, Senior Economist,
                                                    in that market area when the FS and                     size and location.                                    Division of Market Oversight, (202) 418–
                                                    SBA compute small business                                                                                    5452, ssherrod@cftc.gov; or Riva Spear
                                                                                                               The SBA welcomes comments and                      Adriance, Senior Special Counsel,
                                                    participation?                                          any available data to help substantiate
                                                       6. Would including stewardship saw                                                                         Division of Market Oversight, (202) 418–
                                                                                                            recommendations made in response to                   5494, radriance@cftc.gov; Commodity
                                                    timber volume on contracts awarded to
                                                                                                            the foregoing general questions, or other             Futures Trading Commission, Three
                                                    small business in the calculation result
                                                                                                            potential policy options—including                    Lafayette Centre, 1155 21st Street NW.,
                                                    in more accurate representation of small
                                                    business participation in the market                    status quo—that should be considered                  Washington, DC 20581.
                                                    area?                                                   for the Small Business Timber Sales Set-
                                                                                                                                                                  Correction
                                                       Unrelated to stewardship contracting,                Aside Program.
                                                    SBA is also seeking public comments on                                                                          In the Federal Register of February
                                                                                                             Dated: March 16, 2015.
                                                    potential amendments to its current                                                                           25, 2015, in proposed rule FR Doc.
                                                                                                            Maria Contreras-Sweet,                                2015–03834, on page 10023, in the first
                                                    regulations at 13 CFR 121.507(a)(4)(i),                 Administrator.
                                                    which provides that on a set-aside                                                                            column, correct the DATES caption to
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                                                    timber sale, the small business may not
                                                                                                            [FR Doc. 2015–06557 Filed 3–24–15; 8:45 am]           read:
                                                    resell more than 30% of the saw timber                  BILLING CODE 8025–01–P                                  DATES: The comment periods for the
                                                    volume to a large business concern.                                                                           Aggregation Proposal published
                                                    When the FS offers any timber sale, it                                                                        November 15, 2013, at 78 FR 68946, and
                                                    appraises the sale for its potential                                                                          for the Position Limits Proposal
                                                    market value and sets the minimum bid                                                                         published December 12, 2013, at 78 FR
                                                    that it will accept based on that                                                                             75680, will reopen on February 26,
                                                    appraisal. One factor in the appraisal is                                                                     2015, and will close on March 30, 2015.


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Document Created: 2018-02-21 09:49:21
Document Modified: 2018-02-21 09:49:21
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionAdvance notice of proposed rulemaking.
DatesComments must be received on or before May 26, 2015.
ContactBrenda J. Fernandez, Procurement Analyst, Office of Policy, Planning and Liaison, 409 Third Street SW., Washington, DC 20416; (202) 205-7337; [email protected]
FR Citation80 FR 15697 
RIN Number3245-AG69

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