80_FR_77516 80 FR 77277 - Pistachios Grown in California, Arizona, and New Mexico; Increased Assessment Rate

80 FR 77277 - Pistachios Grown in California, Arizona, and New Mexico; Increased Assessment Rate

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 80, Issue 239 (December 14, 2015)

Page Range77277-77279
FR Document2015-31371

This proposed rule would implement a recommendation from the Administrative Committee for Pistachios (Committee) to increase the assessment rate established for the 2015-16 and subsequent production years from $0.0005 to $0.0035 per pound of assessed weight pistachios handled under the marketing order for pistachios grown in California, Arizona, and New Mexico. The Committee locally administers the order and is comprised of producers and handlers of pistachios operating within the area of production. Assessments upon pistachio handlers are used by the Committee to fund reasonable and necessary expenses of the program. The production year begins on September 1 and ends August 31. The assessment rate would remain in effect indefinitely unless modified, suspended, or terminated.

Federal Register, Volume 80 Issue 239 (Monday, December 14, 2015)
[Federal Register Volume 80, Number 239 (Monday, December 14, 2015)]
[Proposed Rules]
[Pages 77277-77279]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-31371]


========================================================================
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. 239 / Monday, December 14, 2015 / 
Proposed Rules

[[Page 77277]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 983

[Doc. No. AMS-FV-15-0038; FV15-983-1 PR]


Pistachios Grown in California, Arizona, and New Mexico; 
Increased Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: This proposed rule would implement a recommendation from the 
Administrative Committee for Pistachios (Committee) to increase the 
assessment rate established for the 2015-16 and subsequent production 
years from $0.0005 to $0.0035 per pound of assessed weight pistachios 
handled under the marketing order for pistachios grown in California, 
Arizona, and New Mexico. The Committee locally administers the order 
and is comprised of producers and handlers of pistachios operating 
within the area of production. Assessments upon pistachio handlers are 
used by the Committee to fund reasonable and necessary expenses of the 
program. The production year begins on September 1 and ends August 31. 
The assessment rate would remain in effect indefinitely unless 
modified, suspended, or terminated.

DATES: Comments must be received by December 29, 2015.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposed rule. Comments must be sent to the Docket 
Clerk, Marketing Order and Agreement Division, Specialty Crops Program, 
AMS, USDA, 1400 Independence Avenue SW., STOP 0237, Washington, DC 
20250-0237; Fax: (202) 720-8938; or Internet: http://www.regulations.gov. Comments should reference the docket number and 
the date and page number of this issue of the Federal Register and will 
be available for public inspection in the Office of the Docket Clerk 
during regular business hours, or can be viewed at: http://www.regulations.gov. All comments submitted in response to this 
proposed rule will be included in the record and will be made available 
to the public. Please be advised that the identity of the individuals 
or entities submitting the comments will be made public on the Internet 
at the address provided above.

FOR FURTHER INFORMATION CONTACT: Peter Sommers, Marketing Specialist, 
or Martin Engeler, Regional Director, California Marketing Field 
Office, Marketing Order and Agreement Division, Specialty Crops 
Program, AMS, USDA; Telephone: (559) 487-5901, Fax: (559) 487-5906, or 
Email: [email protected] or [email protected].
    Small businesses may request information on complying with this 
regulation by contacting Jeffrey Smutny, Marketing Order and Agreement 
Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue 
SW., STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-2491, 
Fax: (202) 720-8938, or Email: [email protected].

SUPPLEMENTARY INFORMATION: This proposed rule is issued under Marketing 
Agreement and Order No. 983, as amended (7 CFR part 983), regulating 
the handling of pistachios grown in California, Arizona, and New 
Mexico, hereinafter referred to as the ``order.'' The order is 
effective under the Agricultural Marketing Agreement Act of 1937, as 
amended (7 U.S.C. 601-674), hereinafter referred to as the ``Act.''
    The Department of Agriculture (USDA) is issuing this proposed rule 
in conformance with Executive Orders 12866, 13563, and 13175.
    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. Under the marketing order now in effect, 
California, Arizona, and New Mexico pistachio handlers are subject to 
assessments. Funds to administer the order are derived from such 
assessments. It is intended that the assessment rate as proposed herein 
would be applicable to all assessable pistachios beginning on September 
1, 2015, and continue until amended, suspended, or terminated.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under section 608c(15)(A) of the 
Act, any handler subject to an order may file with USDA a petition 
stating that the order, any provision of the order, or any obligation 
imposed in connection with the order is not in accordance with law and 
request a modification of the order or to be exempted therefrom. Such 
handler is afforded the opportunity for a hearing on the petition. 
After the hearing, USDA would rule on the petition. The Act provides 
that the district court of the United States in any district in which 
the handler is an inhabitant, or has his or her principal place of 
business, has jurisdiction to review USDA's ruling on the petition, 
provided an action is filed not later than 20 days after the date of 
the entry of the ruling.
    This proposed rule would increase the assessment rate for the 2015-
16 and subsequent production years from $0.0005 to $0.0035 per pound of 
assessed weight pistachios.
    The California, Arizona, and New Mexico pistachio marketing order 
provides authority for the Committee, with the approval of USDA, to 
formulate an annual budget of expenses and collect assessments from 
handlers to administer the program. The members of the Committee are 
producers and handlers of California, Arizona, and New Mexico 
pistachios. They are familiar with the Committee's needs and with the 
costs of goods and services in their local area and are thus in a 
position to formulate an appropriate budget and assessment rate. The 
assessment rate is formulated and discussed in a public meeting. Thus, 
all directly affected persons have an opportunity to participate and 
provide input.
    For the 2011-12 and subsequent production years, the Committee 
recommended, and the USDA approved, an assessment rate that would 
continue in effect from production year to production year unless 
modified, suspended, or terminated by USDA based upon recommendation 
and information submitted by the Committee or other information 
available to USDA.
    The Committee met on July 9, 2015 and October 20, 2015 and 
unanimously recommended 2015-16 production year expenditures of 
$1,056,402 and an assessment rate of $0.0035 per pound of assessed 
weight pistachios handled to

[[Page 77278]]

fund Committee expenses. This represents an increase over the prior 
year's budget and assessment rate. In comparison, last year's budgeted 
expenditures were $1,001,400. The assessment rate of $0.0035 is $0.0030 
higher than the rate currently in effect. The Committee's recommended 
2015-16 expenditures are $55,002 higher than last year's budgeted 
expenditures. The reasons for the proposed increase include a 
significant increase in budgeted expenses in 2015 over actual expenses 
in 2014, a significantly smaller crop estimate in 2015, and allocation 
of funds for Sterile Insect Technology/Navel Orange Worm (SIT/NOW) 
research. When applied to the Committee's crop estimate for the 2015-16 
production year of 265 million pounds, the current assessment rate of 
$0.0005 would not generate sufficient income to cover anticipated 
expenses. The proposed assessment rate of $0.0035 per pound of assessed 
weight pistachios would generate assessment income of $927,500. 
Anticipated assessment income combined with financial reserves and 
other income would provide sufficient revenue for the Committee to meet 
its budgeted expenses while maintaining its financial reserve within 
the limit authorized under the order.
    The major expenditures recommended by the Committee for the 2015-16 
production year include $560,000 for SIT/NOW research, $92,402 for 
administrative expenses, $314,000 for salary and related employee 
expenses, $10,000 for compliance expenses, and $80,000 for a 
contingency fund. Budgeted expenses in 2014-15 were $360,000 for 
Technical Assistance Specialty Crop (TASC) Program research, $125,000 
for other research, $117,400 for administrative expenses, $314,000 for 
salary and related employee expenses, $10,000 for compliance expenses, 
and $75,000 for a contingency fund. Actual expenses in 2014-15 were 
significantly lower, at $547,199, as the TASC research was not funded.
    The assessment rate recommended by the Committee was derived by 
considering anticipated expenses and production levels of California, 
Arizona, and New Mexico pistachios, and other pertinent factors. As 
mentioned earlier, pistachio production levels are estimated at 265 
million pounds, which should generate $927,500 in assessment income. 
Anticipated assessment income derived from handler assessments, along 
with other income and financial reserves would provide sufficient 
revenue for the Committee to meet its budgeted expenses while 
maintaining its financial reserve within the limit authorized under the 
order. The significant increase in the assessment rate is due to a 
significant increase in budgeted expenses in 2015 over actual expenses 
in 2014, and also a significantly smaller crop estimate in 2015. The 
financial reserve is estimated to be $239,994 at the end of the 2015-16 
production year.
    The proposed assessment rate would continue in effect indefinitely 
unless modified, suspended, or terminated by USDA based upon a 
recommendation and information submitted by the Committee or other 
available information.
    Although this assessment rate would be in effect for an indefinite 
period, the Committee would continue to meet prior to or during each 
production year to recommend a budget of expenses and consider 
recommendations for modification of the assessment rate. The dates and 
times of Committee meetings are available from the Committee or USDA. 
Committee meetings are open to the public, and interested persons may 
express their views at these meetings. USDA would evaluate the 
Committee's recommendations and other available information to 
determine whether modification of the assessment rate is needed. 
Further rulemaking would be undertaken as necessary. The Committee's 
2015-16 budget and those for subsequent production years would be 
reviewed and, as appropriate, approved by USDA.

Initial Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS) 
has considered the economic impact of this proposed rule on small 
entities. Accordingly, AMS has prepared this initial regulatory 
flexibility analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Marketing orders issued 
pursuant to the Act, and the rules issued thereunder, are unique in 
that they are brought about through group action of essentially small 
entities acting on their own behalf.
    There are approximately 1,152 producers of pistachios in the 
production area and approximately 19 handlers subject to regulation 
under the marketing order. Small agricultural producers are defined by 
the Small Business Administration as those having annual receipts of 
less than $750,000, and small agricultural service firms are defined as 
those whose annual receipts are less than $7,000,000 (13 CFR 121.201).
    Based on Committee data, it is estimated that about 47 percent of 
the handlers annually ship less than $7,000,000 worth of pistachios, 
and it is also estimated that 68 percent of the producers have annual 
receipts less than $750,000. Thus, the majority of handlers in the 
production area may be classified as large entities, and the majority 
of producers may be classified as small entities.
    This proposal would increase the assessment rate collected from 
handlers for the 2015-16 and subsequent production years from $0.0005 
to $0.0035 per pound of assessed weight pistachios. The Committee 
unanimously recommended 2015-16 expenditures of $1,056,402 and an 
assessment rate of $0.0035 per pound of assessed weight pistachios. The 
proposed assessment rate of $0.0035 is $0.0030 higher than the 2014-15 
rate. The quantity of assessable pistachios for the 2015-16 production 
year is estimated at 265 million pounds. Thus, the $0.0035 rate should 
provide $927,500 in assessment income. Anticipated assessment income 
derived from handler assessments, along with other income and financial 
reserves would provide sufficient revenue for the Committee to meet its 
budgeted expenses while maintaining its financial reserve authorized 
under the order which is approximately two production years' budgeted 
expenses.
    The major expenditures recommended by the Committee for the 2015-16 
production year include $560,000 for SIT/NOW research, $92,401 for 
administrative expenses, $314,000 for salary and related employee 
expenses, $10,000 for compliance expenses, and $80,000 for a 
contingency fund. Budgeted expenses in 2014-15 were $360,000 for TASC 
Program research, $125,000 for other research, $117,400 for 
administrative expenses, $314,000 for salary and related employee 
expenses, $10,000 for compliance expenses, and $75,000 for a 
contingency fund. The reasons for the proposed increase include a 
significant increase in budgeted expenses in 2015 over actual expenses 
in 2014, a significantly smaller crop estimate in 2015, and allocation 
of funds for Sterile Insect Technology/Navel Orange Worm (SIT/NOW) 
research.
    Prior to arriving at this budget and assessment rate, the Committee 
considered alternative expenditure levels but ultimately determined 
that 2015-16 expenditures of $1,056,402 were appropriate and that the 
current assessment rate would generate

[[Page 77279]]

insufficient revenue to meet its expenses.
    According to data from the National Agricultural Statistics 
Service, the season average producer price was $3.48 per pound of 
assessed weight pistachios in 2013 and $3.10 per pound in 2014. A 
review of historical information and preliminary information pertaining 
to the upcoming production year indicates that the producer price for 
the 2015-16 production year could range between $3.48 and $3.10 per 
pound of assessed weight pistachios. Therefore, the estimated 
assessment revenue for the 2015-16 production year as a percentage of 
total producer revenue could range between 0.10 and 0.11 percent.
    This action would increase the assessment obligation imposed on 
handlers. While assessments impose some additional costs on handlers, 
the costs are minimal and uniform on all handlers. These costs would be 
offset by the benefits derived from the operation of the marketing 
order. In addition, the Committee's meeting was widely publicized 
throughout the California, Arizona, and New Mexico pistachio industry, 
and all interested persons were invited to attend and participate in 
Committee deliberations on all issues. Like all Committee meetings, the 
July 9, 2015, and October 20, 2015, meetings were public and all 
entities, both large and small, were able to express views on this 
issue. Finally, interested persons are invited to submit comments on 
this proposed rule, including the regulatory and informational impacts 
of this action on small businesses.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the order's information collection requirements have been 
previously approved by the Office of Management and Budget (OMB) and 
assigned OMB No. 0581-0215. No changes in those requirements are 
necessary as a result of this action. Should any changes become 
necessary, they would be submitted to OMB for approval.
    This proposed rule would impose no additional reporting or 
recordkeeping requirements on either small or large California, 
Arizona, and New Mexico pistachio handlers. As with all Federal 
marketing order programs, reports and forms are periodically reviewed 
to reduce information requirements and duplication by industry and 
public sector agencies.
    AMS is committed to complying with the E-Government Act, to promote 
the use of the Internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.
    USDA has not identified any relevant Federal rules that duplicate, 
overlap, or conflict with this action.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at: http://www.ams.usda.gov/rules-regulations/moa/small-businesses. Any questions 
about the compliance guide should be sent to Jeffrey Smutny at the 
previously mentioned address in the FOR FURTHER INFORMATION CONTACT 
section.
    A 15-day comment period is provided to allow interested persons to 
respond to this proposed rule. Fifteen days is deemed appropriate 
because: (1) The 2015-16 production year began on September 1, 2015, 
and the marketing order requires that the rate of assessment for each 
production year apply to all assessable pistachios handled during such 
production year; (2) the Committee needs to have sufficient funds to 
pay its expenses, which are incurred on a continuous basis; and (3) 
handlers are aware of this action, which was unanimously recommended by 
the Committee at a public meeting.

List of Subjects in 7 CFR Part 983

    Marketing agreements, Pistachios, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 983 is 
proposed to be amended as follows:

PART 983--PISTACHIOS GROWN IN CALIFORNIA, ARIZONA, AND NEW MEXICO

0
1. The authority citation for 7 CFR part 983 continues to read as 
follows:

    Authority:  7 U.S.C. 601-674.

0
2. Revise Sec.  983.253(a) to read as follows:


Sec.  983.253  Assessment rate.

    (a) On and after September 1, 2015, an assessment rate of $0.0035 
per pound is established for California, Arizona, and New Mexico 
pistachios.
* * * * *

    Dated: December 8, 2015.
Rex A. Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2015-31371 Filed 12-11-15; 8:45 am]
BILLING CODE P



                                                                                                                                                                                               77277

                                               Proposed Rules                                                                                                Federal Register
                                                                                                                                                             Vol. 80, No. 239

                                                                                                                                                             Monday, December 14, 2015



                                               This section of the FEDERAL REGISTER                    the Office of the Docket Clerk during                 section 608c(15)(A) of the Act, any
                                               contains notices to the public of the proposed          regular business hours, or can be viewed              handler subject to an order may file
                                               issuance of rules and regulations. The                  at: http://www.regulations.gov. All                   with USDA a petition stating that the
                                               purpose of these notices is to give interested          comments submitted in response to this                order, any provision of the order, or any
                                               persons an opportunity to participate in the            proposed rule will be included in the                 obligation imposed in connection with
                                               rule making prior to the adoption of the final
                                               rules.
                                                                                                       record and will be made available to the              the order is not in accordance with law
                                                                                                       public. Please be advised that the                    and request a modification of the order
                                                                                                       identity of the individuals or entities               or to be exempted therefrom. Such
                                               DEPARTMENT OF AGRICULTURE                               submitting the comments will be made                  handler is afforded the opportunity for
                                                                                                       public on the Internet at the address                 a hearing on the petition. After the
                                               Agricultural Marketing Service                          provided above.                                       hearing, USDA would rule on the
                                                                                                       FOR FURTHER INFORMATION CONTACT:                      petition. The Act provides that the
                                               7 CFR Part 983                                          Peter Sommers, Marketing Specialist, or               district court of the United States in any
                                               [Doc. No. AMS–FV–15–0038; FV15–983–1                    Martin Engeler, Regional Director,                    district in which the handler is an
                                               PR]                                                     California Marketing Field Office,                    inhabitant, or has his or her principal
                                                                                                       Marketing Order and Agreement                         place of business, has jurisdiction to
                                               Pistachios Grown in California,                         Division, Specialty Crops Program,                    review USDA’s ruling on the petition,
                                               Arizona, and New Mexico; Increased                      AMS, USDA; Telephone: (559) 487–                      provided an action is filed not later than
                                               Assessment Rate                                         5901, Fax: (559) 487–5906, or Email:                  20 days after the date of the entry of the
                                                                                                       PeterR.Sommers@ams.usda.gov or                        ruling.
                                               AGENCY:  Agricultural Marketing Service,                Martin.Engeler@ams.usda.gov.                            This proposed rule would increase
                                               USDA.                                                      Small businesses may request                       the assessment rate for the 2015–16 and
                                               ACTION: Proposed rule.                                  information on complying with this                    subsequent production years from
                                                                                                       regulation by contacting Jeffrey Smutny,              $0.0005 to $0.0035 per pound of
                                               SUMMARY:    This proposed rule would                    Marketing Order and Agreement                         assessed weight pistachios.
                                               implement a recommendation from the                     Division, Specialty Crops Program,                      The California, Arizona, and New
                                               Administrative Committee for                            AMS, USDA, 1400 Independence                          Mexico pistachio marketing order
                                               Pistachios (Committee) to increase the                  Avenue SW., STOP 0237, Washington,                    provides authority for the Committee,
                                               assessment rate established for the                     DC 20250–0237; Telephone: (202) 720–                  with the approval of USDA, to formulate
                                               2015–16 and subsequent production                       2491, Fax: (202) 720–8938, or Email:                  an annual budget of expenses and
                                               years from $0.0005 to $0.0035 per                       Jeffrey.Smutny@ams.usda.gov.                          collect assessments from handlers to
                                               pound of assessed weight pistachios                                                                           administer the program. The members
                                                                                                       SUPPLEMENTARY INFORMATION: This
                                               handled under the marketing order for                                                                         of the Committee are producers and
                                               pistachios grown in California, Arizona,                proposed rule is issued under Marketing
                                                                                                       Agreement and Order No. 983, as                       handlers of California, Arizona, and
                                               and New Mexico. The Committee                                                                                 New Mexico pistachios. They are
                                               locally administers the order and is                    amended (7 CFR part 983), regulating
                                                                                                       the handling of pistachios grown in                   familiar with the Committee’s needs and
                                               comprised of producers and handlers of                                                                        with the costs of goods and services in
                                               pistachios operating within the area of                 California, Arizona, and New Mexico,
                                                                                                       hereinafter referred to as the ‘‘order.’’             their local area and are thus in a
                                               production. Assessments upon pistachio                                                                        position to formulate an appropriate
                                               handlers are used by the Committee to                   The order is effective under the
                                                                                                       Agricultural Marketing Agreement Act                  budget and assessment rate. The
                                               fund reasonable and necessary expenses                                                                        assessment rate is formulated and
                                               of the program. The production year                     of 1937, as amended (7 U.S.C. 601–674),
                                                                                                       hereinafter referred to as the ‘‘Act.’’               discussed in a public meeting. Thus, all
                                               begins on September 1 and ends August                                                                         directly affected persons have an
                                                                                                          The Department of Agriculture
                                               31. The assessment rate would remain                                                                          opportunity to participate and provide
                                                                                                       (USDA) is issuing this proposed rule in
                                               in effect indefinitely unless modified,                                                                       input.
                                                                                                       conformance with Executive Orders
                                               suspended, or terminated.                                                                                       For the 2011–12 and subsequent
                                                                                                       12866, 13563, and 13175.
                                               DATES: Comments must be received by                        This proposed rule has been reviewed               production years, the Committee
                                               December 29, 2015.                                      under Executive Order 12988, Civil                    recommended, and the USDA approved,
                                               ADDRESSES: Interested persons are                       Justice Reform. Under the marketing                   an assessment rate that would continue
                                               invited to submit written comments                      order now in effect, California, Arizona,             in effect from production year to
                                               concerning this proposed rule.                          and New Mexico pistachio handlers are                 production year unless modified,
                                               Comments must be sent to the Docket                     subject to assessments. Funds to                      suspended, or terminated by USDA
                                               Clerk, Marketing Order and Agreement                    administer the order are derived from                 based upon recommendation and
                                               Division, Specialty Crops Program,                      such assessments. It is intended that the             information submitted by the
Lhorne on DSK5TPTVN1PROD with PROPOSALS




                                               AMS, USDA, 1400 Independence                            assessment rate as proposed herein                    Committee or other information
                                               Avenue SW., STOP 0237, Washington,                      would be applicable to all assessable                 available to USDA.
                                               DC 20250–0237; Fax: (202) 720–8938; or                  pistachios beginning on September 1,                    The Committee met on July 9, 2015
                                               Internet: http://www.regulations.gov.                   2015, and continue until amended,                     and October 20, 2015 and unanimously
                                               Comments should reference the docket                    suspended, or terminated.                             recommended 2015–16 production year
                                               number and the date and page number                        The Act provides that administrative               expenditures of $1,056,402 and an
                                               of this issue of the Federal Register and               proceedings must be exhausted before                  assessment rate of $0.0035 per pound of
                                               will be available for public inspection in              parties may file suit in court. Under                 assessed weight pistachios handled to


                                          VerDate Sep<11>2014   14:50 Dec 11, 2015   Jkt 238001   PO 00000   Frm 00001   Fmt 4702   Sfmt 4702   E:\FR\FM\14DEP1.SGM   14DEP1


                                               77278                Federal Register / Vol. 80, No. 239 / Monday, December 14, 2015 / Proposed Rules

                                               fund Committee expenses. This                           its financial reserve within the limit                firms are defined as those whose annual
                                               represents an increase over the prior                   authorized under the order. The                       receipts are less than $7,000,000 (13
                                               year’s budget and assessment rate. In                   significant increase in the assessment                CFR 121.201).
                                               comparison, last year’s budgeted                        rate is due to a significant increase in                 Based on Committee data, it is
                                               expenditures were $1,001,400. The                       budgeted expenses in 2015 over actual                 estimated that about 47 percent of the
                                               assessment rate of $0.0035 is $0.0030                   expenses in 2014, and also a                          handlers annually ship less than
                                               higher than the rate currently in effect.               significantly smaller crop estimate in                $7,000,000 worth of pistachios, and it is
                                               The Committee’s recommended 2015–                       2015. The financial reserve is estimated              also estimated that 68 percent of the
                                               16 expenditures are $55,002 higher than                 to be $239,994 at the end of the 2015–                producers have annual receipts less
                                               last year’s budgeted expenditures. The                  16 production year.                                   than $750,000. Thus, the majority of
                                               reasons for the proposed increase                          The proposed assessment rate would                 handlers in the production area may be
                                               include a significant increase in                       continue in effect indefinitely unless                classified as large entities, and the
                                               budgeted expenses in 2015 over actual                   modified, suspended, or terminated by                 majority of producers may be classified
                                               expenses in 2014, a significantly smaller               USDA based upon a recommendation                      as small entities.
                                               crop estimate in 2015, and allocation of                and information submitted by the                         This proposal would increase the
                                               funds for Sterile Insect Technology/                    Committee or other available                          assessment rate collected from handlers
                                               Navel Orange Worm (SIT/NOW)                             information.                                          for the 2015–16 and subsequent
                                               research. When applied to the                              Although this assessment rate would                production years from $0.0005 to
                                               Committee’s crop estimate for the 2015–                 be in effect for an indefinite period, the            $0.0035 per pound of assessed weight
                                               16 production year of 265 million                       Committee would continue to meet                      pistachios. The Committee unanimously
                                               pounds, the current assessment rate of                  prior to or during each production year               recommended 2015–16 expenditures of
                                               $0.0005 would not generate sufficient                   to recommend a budget of expenses and                 $1,056,402 and an assessment rate of
                                               income to cover anticipated expenses.                   consider recommendations for                          $0.0035 per pound of assessed weight
                                               The proposed assessment rate of                         modification of the assessment rate. The              pistachios. The proposed assessment
                                               $0.0035 per pound of assessed weight                    dates and times of Committee meetings                 rate of $0.0035 is $0.0030 higher than
                                               pistachios would generate assessment                    are available from the Committee or                   the 2014–15 rate. The quantity of
                                               income of $927,500. Anticipated                         USDA. Committee meetings are open to                  assessable pistachios for the 2015–16
                                               assessment income combined with                         the public, and interested persons may                production year is estimated at 265
                                               financial reserves and other income                     express their views at these meetings.                million pounds. Thus, the $0.0035 rate
                                               would provide sufficient revenue for the                USDA would evaluate the Committee’s                   should provide $927,500 in assessment
                                               Committee to meet its budgeted                          recommendations and other available                   income. Anticipated assessment income
                                               expenses while maintaining its financial                information to determine whether                      derived from handler assessments, along
                                               reserve within the limit authorized                     modification of the assessment rate is                with other income and financial
                                               under the order.                                        needed. Further rulemaking would be                   reserves would provide sufficient
                                                  The major expenditures                               undertaken as necessary. The                          revenue for the Committee to meet its
                                               recommended by the Committee for the                    Committee’s 2015–16 budget and those                  budgeted expenses while maintaining
                                               2015–16 production year include                         for subsequent production years would                 its financial reserve authorized under
                                               $560,000 for SIT/NOW research,                          be reviewed and, as appropriate,                      the order which is approximately two
                                               $92,402 for administrative expenses,                    approved by USDA.                                     production years’ budgeted expenses.
                                               $314,000 for salary and related                                                                                  The major expenditures
                                                                                                       Initial Regulatory Flexibility Analysis               recommended by the Committee for the
                                               employee expenses, $10,000 for
                                               compliance expenses, and $80,000 for a                    Pursuant to requirements set forth in               2015–16 production year include
                                               contingency fund. Budgeted expenses in                  the Regulatory Flexibility Act (RFA) (5               $560,000 for SIT/NOW research,
                                               2014–15 were $360,000 for Technical                     U.S.C. 601–612), the Agricultural                     $92,401 for administrative expenses,
                                               Assistance Specialty Crop (TASC)                        Marketing Service (AMS) has                           $314,000 for salary and related
                                               Program research, $125,000 for other                    considered the economic impact of this                employee expenses, $10,000 for
                                               research, $117,400 for administrative                   proposed rule on small entities.                      compliance expenses, and $80,000 for a
                                               expenses, $314,000 for salary and                       Accordingly, AMS has prepared this                    contingency fund. Budgeted expenses in
                                               related employee expenses, $10,000 for                  initial regulatory flexibility analysis.              2014–15 were $360,000 for TASC
                                               compliance expenses, and $75,000 for a                    The purpose of the RFA is to fit                    Program research, $125,000 for other
                                               contingency fund. Actual expenses in                    regulatory actions to the scale of                    research, $117,400 for administrative
                                               2014–15 were significantly lower, at                    businesses subject to such actions in                 expenses, $314,000 for salary and
                                               $547,199, as the TASC research was not                  order that small businesses will not be               related employee expenses, $10,000 for
                                               funded.                                                 unduly or disproportionately burdened.                compliance expenses, and $75,000 for a
                                                  The assessment rate recommended by                   Marketing orders issued pursuant to the               contingency fund. The reasons for the
                                               the Committee was derived by                            Act, and the rules issued thereunder, are             proposed increase include a significant
                                               considering anticipated expenses and                    unique in that they are brought about                 increase in budgeted expenses in 2015
                                               production levels of California, Arizona,               through group action of essentially                   over actual expenses in 2014, a
                                               and New Mexico pistachios, and other                    small entities acting on their own                    significantly smaller crop estimate in
                                               pertinent factors. As mentioned earlier,                behalf.                                               2015, and allocation of funds for Sterile
                                               pistachio production levels are                           There are approximately 1,152                       Insect Technology/Navel Orange Worm
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                                               estimated at 265 million pounds, which                  producers of pistachios in the                        (SIT/NOW) research.
                                               should generate $927,500 in assessment                  production area and approximately 19                     Prior to arriving at this budget and
                                               income. Anticipated assessment income                   handlers subject to regulation under the              assessment rate, the Committee
                                               derived from handler assessments, along                 marketing order. Small agricultural                   considered alternative expenditure
                                               with other income and financial                         producers are defined by the Small                    levels but ultimately determined that
                                               reserves would provide sufficient                       Business Administration as those                      2015–16 expenditures of $1,056,402
                                               revenue for the Committee to meet its                   having annual receipts of less than                   were appropriate and that the current
                                               budgeted expenses while maintaining                     $750,000, and small agricultural service              assessment rate would generate


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                                                                    Federal Register / Vol. 80, No. 239 / Monday, December 14, 2015 / Proposed Rules                                           77279

                                               insufficient revenue to meet its                        access to Government information and                  DEPARTMENT OF TRANSPORTATION
                                               expenses.                                               services, and for other purposes.
                                                 According to data from the National                      USDA has not identified any relevant               Federal Aviation Administration
                                               Agricultural Statistics Service, the
                                                                                                       Federal rules that duplicate, overlap, or
                                               season average producer price was $3.48                                                                       14 CFR Part 39
                                                                                                       conflict with this action.
                                               per pound of assessed weight pistachios
                                                                                                          A small business guide on complying                [Docket No. FAA–2015–6550; Directorate
                                               in 2013 and $3.10 per pound in 2014.                                                                          Identifier 2013–NM–162–AD]
                                               A review of historical information and                  with fruit, vegetable, and specialty crop
                                               preliminary information pertaining to                   marketing agreements and orders may                   RIN 2120–AA64
                                               the upcoming production year indicates                  be viewed at: http://www.ams.usda.gov/
                                               that the producer price for the 2015–16                 rules-regulations/moa/small-businesses.               Airworthiness Directives; Airbus
                                               production year could range between                     Any questions about the compliance                    Airplanes
                                               $3.48 and $3.10 per pound of assessed                   guide should be sent to Jeffrey Smutny                AGENCY: Federal Aviation
                                               weight pistachios. Therefore, the                       at the previously mentioned address in                Administration (FAA), DOT.
                                               estimated assessment revenue for the                    the FOR FURTHER INFORMATION CONTACT                   ACTION: Notice of proposed rulemaking
                                               2015–16 production year as a                            section.                                              (NPRM).
                                               percentage of total producer revenue
                                               could range between 0.10 and 0.11                          A 15-day comment period is provided
                                                                                                       to allow interested persons to respond                SUMMARY:   We propose to supersede
                                               percent.                                                                                                      Airworthiness Directive (AD) 90–11–05
                                                 This action would increase the                        to this proposed rule. Fifteen days is
                                                                                                       deemed appropriate because: (1) The                   for certain Airbus Model A300 series
                                               assessment obligation imposed on                                                                              airplanes and Model A300 B4–600
                                               handlers. While assessments impose                      2015–16 production year began on
                                                                                                                                                             series airplanes. AD 90–11–05 currently
                                               some additional costs on handlers, the                  September 1, 2015, and the marketing
                                                                                                                                                             requires repetitive detailed inspections
                                               costs are minimal and uniform on all                    order requires that the rate of
                                                                                                                                                             for cracking in the aft hinge brackets of
                                               handlers. These costs would be offset by                assessment for each production year
                                                                                                                                                             the outer shroud box that is located in
                                               the benefits derived from the operation                 apply to all assessable pistachios
                                                                                                                                                             the outer wing box, and related
                                               of the marketing order. In addition, the                handled during such production year;                  investigative and corrective actions if
                                               Committee’s meeting was widely                          (2) the Committee needs to have                       necessary. Since we issued AD 90–11–
                                               publicized throughout the California,                   sufficient funds to pay its expenses,                 05, we have determined that a change to
                                               Arizona, and New Mexico pistachio                       which are incurred on a continuous                    certain compliance times is needed.
                                               industry, and all interested persons                    basis; and (3) handlers are aware of this             This proposed AD would continue to
                                               were invited to attend and participate in               action, which was unanimously                         require doing repetitive detailed
                                               Committee deliberations on all issues.                  recommended by the Committee at a                     inspections for cracking in the hinge
                                               Like all Committee meetings, the July 9,                public meeting.                                       brackets of the forward and aft outer
                                               2015, and October 20, 2015, meetings                                                                          shroud boxes that are located in the
                                               were public and all entities, both large                List of Subjects in 7 CFR Part 983
                                                                                                                                                             outer wing box, and related
                                               and small, were able to express views                     Marketing agreements, Pistachios,                   investigative and corrective actions if
                                               on this issue. Finally, interested persons                                                                    necessary; and would add airplanes to
                                                                                                       Reporting and recordkeeping
                                               are invited to submit comments on this
                                                                                                       requirements.                                         the applicability. We are proposing this
                                               proposed rule, including the regulatory
                                                                                                                                                             AD to detect and correct cracking of the
                                               and informational impacts of this action                  For the reasons set forth in the                    aft hinge brackets of the outer shroud
                                               on small businesses.                                    preamble, 7 CFR part 983 is proposed to
                                                 In accordance with the Paperwork                                                                            box; such cracking could affect the
                                                                                                       be amended as follows:                                structural integrity of the airplane.
                                               Reduction Act of 1995 (44 U.S.C.
                                               Chapter 35), the order’s information                    PART 983—PISTACHIOS GROWN IN                          DATES: We must receive comments on
                                               collection requirements have been                       CALIFORNIA, ARIZONA, AND NEW                          this proposed AD by January 28, 2016.
                                               previously approved by the Office of                    MEXICO                                                ADDRESSES: You may send comments by
                                               Management and Budget (OMB) and                                                                               any of the following methods:
                                               assigned OMB No. 0581–0215. No                          ■ 1. The authority citation for 7 CFR                    • Federal eRulemaking Portal: Go to
                                               changes in those requirements are                       part 983 continues to read as follows:                http://www.regulations.gov. Follow the
                                               necessary as a result of this action.                                                                         instructions for submitting comments.
                                               Should any changes become necessary,                        Authority: 7 U.S.C. 601–674.                         • Fax: 202–493–2251.
                                               they would be submitted to OMB for                                                                               • Mail: U.S. Department of
                                                                                                       ■ 2. Revise § 983.253(a) to read as
                                               approval.                                                                                                     Transportation, Docket Operations, M–
                                                                                                       follows:
                                                 This proposed rule would impose no                                                                          30, West Building Ground Floor, Room
                                               additional reporting or recordkeeping                   § 983.253    Assessment rate.                         W12–140, 1200 New Jersey Avenue SE.,
                                               requirements on either small or large                                                                         Washington, DC 20590.
                                               California, Arizona, and New Mexico                       (a) On and after September 1, 2015, an                 • Hand Delivery: U.S. Department of
                                               pistachio handlers. As with all Federal                 assessment rate of $0.0035 per pound is               Transportation, Docket Operations, M–
                                               marketing order programs, reports and                   established for California, Arizona, and              30, West Building Ground Floor, Room
                                               forms are periodically reviewed to                      New Mexico pistachios.                                W12–140, 1200 New Jersey Avenue SE.,
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                                               reduce information requirements and                     *     *    *     *     *                              Washington, DC, between 9 a.m. and 5
                                               duplication by industry and public                        Dated: December 8, 2015.
                                                                                                                                                             p.m., Monday through Friday, except
                                               sector agencies.                                                                                              Federal holidays.
                                                 AMS is committed to complying with                    Rex A. Barnes,                                           For service information identified in
                                               the E-Government Act, to promote the                    Associate Administrator, Agricultural                 this proposed AD, contact Airbus SAS,
                                               use of the Internet and other                           Marketing Service.                                    Airworthiness Office—EAW, 1 Rond
                                               information technologies to provide                     [FR Doc. 2015–31371 Filed 12–11–15; 8:45 am]          Point Maurice Bellonte, 31707 Blagnac
                                               increased opportunities for citizen                     BILLING CODE P                                        Cedex, France; telephone +33 5 61 93 36


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Document Created: 2015-12-14 13:46:57
Document Modified: 2015-12-14 13:46:57
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
ActionProposed rule.
DatesComments must be received by December 29, 2015.
ContactPeter Sommers, Marketing Specialist, or Martin Engeler, Regional Director, California Marketing Field Office, Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA; Telephone: (559) 487-5901, Fax: (559) 487-5906, or Email: [email protected] or [email protected]
FR Citation80 FR 77277 
CFR AssociatedMarketing Agreements; Pistachios and Reporting and Recordkeeping Requirements

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