81 FR 49855 - Reauthorization of the United States Grain Standards Act

DEPARTMENT OF AGRICULTURE
Grain Inspection, Packers and Stockyards Administration

Federal Register Volume 81, Issue 146 (July 29, 2016)

Page Range		49855-49863
FR Document		2016-17762
The Department of Agriculture (USDA) Grain Inspection, Packers and Stockyards Administration (GIPSA) is revising existing regulations and adding new regulations under the United States Grain Standards Act (USGSA), as amended, in order to comply with amendments to the USGSA made by the Agriculture Reauthorizations Act of 2015. Specifically, this rulemaking eliminates mandatory barge weighing, removes the discretion for emergency waivers of inspection and weighing, revises GIPSA's fee structure, revises exceptions to official agency geographic boundaries, extends the length of licenses and designations, and imposes new requirements for delegated States.
Federal Register, Volume 81 Issue 146 (Friday, July 29, 2016)
[Federal Register Volume 81, Number 146 (Friday, July 29, 2016)]
[Rules and Regulations]
[Pages 49855-49863]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-17762]



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Federal Register / Vol. 81, No. 146 / Friday, July 29, 2016 / Rules 
and Regulations

[[Page 49855]]



DEPARTMENT OF AGRICULTURE

Grain Inspection, Packers and Stockyards Administration

7 CFR Part 800

RIN 0580-AB24


Reauthorization of the United States Grain Standards Act

AGENCY: Grain Inspection Packers and Stockyards Administration, USDA.

ACTION: Final rule.

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SUMMARY: The Department of Agriculture (USDA) Grain Inspection, Packers 
and Stockyards Administration (GIPSA) is revising existing regulations 
and adding new regulations under the United States Grain Standards Act 
(USGSA), as amended, in order to comply with amendments to the USGSA 
made by the Agriculture Reauthorizations Act of 2015. Specifically, 
this rulemaking eliminates mandatory barge weighing, removes the 
discretion for emergency waivers of inspection and weighing, revises 
GIPSA's fee structure, revises exceptions to official agency geographic 
boundaries, extends the length of licenses and designations, and 
imposes new requirements for delegated States.

DATES: Effective July 29, 2016.

FOR FURTHER INFORMATION CONTACT: Barry Gomoll, 202-720-8286.
    Persons with disabilities who require alternative means for 
communication (Braille, large print, audio tape, etc.) should contact 
the USDA Target Center at (202) 720-2600 (voice and TDD).

SUPPLEMENTARY INFORMATION:

Overview

    On September 30, 2015, President Obama signed into law the 
Agriculture Reauthorizations Act of 2015, Public Law 114-54 (The 
Reauthorization Act). In addition to extending certain provisions of 
the USGSA (7 U.S.C. 71-87k) to 2020, the Reauthorization Act also made 
several changes to the existing law. Therefore, GIPSA issued a proposed 
rule in the Federal Register to amend 7 CFR part 800 to comply with the 
amendments made by the Reauthorization Act and solicited comments from 
interested parties (81 FR 3970). Specifically, GIPSA proposed to:
     Remove the requirement to officially weigh inbound barge 
shipments at export port locations (Sec.  800.15 and Sec.  800.216);
     approve requests for waivers of official inspection and 
weighing requirements for export grain in ``emergencies or other 
circumstances that would not impair the objectives of the [USGSA] 
whenever the parties to a contract for such shipment mutually agree to 
the waiver and documentation of such agreement is provided to the 
Secretary prior to shipment'' (Sec.  800.18);
     base the portion of fees assessed on tonnage on the 5-year 
rolling average of export tonnage volume (Sec.  800.71);
     adjust fees annually to maintain a 3 to 6 month operating 
reserve for inspection and supervision services (Sec.  800.71);
     remove the provision that allows applicants to request 
service from an official agency outside an assigned geographic region 
after 90 days of nonuse of service (Sec.  800.117);
     waive the geographic boundaries established for official 
agencies between two adjacent official agencies if both official 
agencies agree in writing to the waiver (Sec.  800.117);
     without changing current termination dates, terminate 
inspection licenses every 5 years instead of every 3 years (Sec.  
800.175);
     require delegated States to notify GIPSA of any intent to 
temporarily discontinue official inspection or weighing services at 
least 72 hours in advance, except in the case of a major disaster 
(Sec.  800.195);
     review delegated states every 5 years and certify that 
they comply with the requirements for delegation under the USGSA (Sec.  
800.195);
     require designated official agencies to respond to 
concerns identified during GIPSA's consultations with customers as part 
of the renewal of a designation (Sec.  800.196); and
     extend the minimum length of designation for official 
agencies from 3 years to 5 years (Sec.  800.196).

Fees

    GIPSA last made changes to its fee schedule on May 1, 2013 (78 FR 
22151-66). At that time, GIPSA determined that the existing fee 
schedule for inspection and weighing services would not generate 
sufficient revenue to adequately cover program costs through fiscal 
year 2017. To correct this problem and to build an operating reserve, 
GIPSA increased fees by 5 percent in fiscal year 2013 and an additional 
2 percent for each successive year through fiscal year 2017.
    In addition, GIPSA restructured its tonnage fees to more accurately 
reflect the administrative and supervisory costs at the national and 
local level. In order to establish an equitable tonnage fee for all 
export tonnage utilizing the official system, GIPSA began assessing the 
national tonnage fee on all export grain inspected and/or weighed 
(excluding land carrier shipments to Canada and Mexico) by delegated 
States and designated agencies. GIPSA also shifted workers compensation 
costs from the national to the local level to fully reflect where those 
workers compensation costs originated.
    Prior to the Reauthorization Act, GIPSA used projected future 
tonnage volumes as a basis to calculate tonnage fees. The 
Reauthorization Act amended the USGSA to require that tonnage fees be 
based on the five-year rolling average of export tonnage volumes. In 
order to comply with this new tonnage fee requirement, GIPSA proposed 
to adjust both the national and local tonnage fees on a yearly basis. 
GIPSA proposed that the national tonnage fee would be the national 
program administrative costs (the costs of management and support of 
official inspection and weighing) for the previous fiscal year divided 
by the average export tonnage for the previous 5 fiscal years. Also, 
the local tonnage fees would be the Field Office administrative costs 
(the costs of management, support, and maintenance of each Field 
Office) for the previous fiscal year divided by the average tonnage 
serviced by that Field Office for the previous 5 fiscal years.
    The Reauthorization Act further requires adjustment of all of 
GIPSA's fees for the performance, supervision, and administration of 
official inspection and weighing services at least annually to maintain 
a 3 to 6 month operating reserve. Given that the number of

[[Page 49856]]

requests for official inspection and weighing services varies with the 
amount of grain produced and exported from year to year, an operating 
reserve allows funding of operations in periods during which revenue 
may not equal or exceed costs. In order to maintain an appropriate 
level of operating reserve, GIPSA proposed to increase or decrease 
inspection and weighing fees when the operating reserve is less than 3 
times or more than 6 times monthly operating expenses. For each $1 
million that the operating reserve is below 3 months or above 6 months 
of the operating expenses, GIPSA would increase or decrease fees by 2 
percent, respectively. GIPSA also proposed to set a 5 percent limit on 
changes to fees for service per calendar year. GIPSA's annual user fee 
revenue for performance, supervision, and administration of official 
inspection and weighing is approximately $40 million. Therefore, an 
increase or decrease of 2 to 5 percent would approximately equal 
between $0.8 and $2 million annually.
    In addition to these annual reviews of fees, GIPSA will continue to 
evaluate the financial status of the official inspection and weighing 
services to ensure that the revenue for each service covers the cost to 
GIPSA of providing that service. Also, GIPSA will continue to seek out 
cost saving measures and implement appropriate changes to reduce costs 
and minimize the need for fee increases.
    This action is authorized under the USGSA (7 U.S.C. 79(j)), which 
provides for the establishment and collection of fees that are 
reasonable and, as nearly as practicable, cover the costs of the 
services rendered, including associated administrative and supervisory 
costs. The tonnage fees cover the GIPSA administrative and supervisory 
costs for the performance of GIPSA's official inspection and weighing 
services; including personnel compensation and benefits, travel, rent, 
communications, utilities, contractual services, supplies, and 
equipment.

Exceptions to Geographic Boundaries

    The Reauthorization Act requires changes to GIPSA's exception 
program for official agencies to operate outside of their 
geographically assigned areas. Prior to the Reauthorization Act, the 
regulations provided for three types of exceptions: Timely service, 
nonuse of service for 90 consecutive days, and barge probe inspections. 
The Reauthorization Act amended the USGSA to eliminate the nonuse of 
service exception and add a provision for geographically adjacent 
agencies to provide service in each other's assigned geographic 
territories at an applicant's request if both agencies agree in 
writing. GIPSA proposed to revise the current regulations to comply 
with the changes to the USGSA by the Reauthorization Act.
    GIPSA currently has 95 agreements for agencies to operate outside 
of their assigned territories and GIPSA will continue to honor those 
agreements. Under GIPSA's proposed rule, an agency would be permitted 
to provide service at a location in another adjacent agency's 
territory, provided that both agencies and the applicant for service 
submit an agreement in writing to GIPSA.

Delegations

    As required by the Reauthorization Act, GIPSA proposed to impose 
new requirements on State agencies that GIPSA delegates to perform 
export inspection and weighing services at export port locations under 
the USGSA. The Reauthorization Act requires the Secretary to certify 
that State agencies continue to meet statutory requirements. 
Accordingly, GIPSA will review each delegated state every 5 years to 
determine that it meets the criteria for delegation set forth in the 
USGSA. GIPSA proposed to implement a process mirroring the existing 
process that GIPSA uses to renew the designations of official agencies. 
The Reauthorization Act also requires that a delegated State must 
notify GIPSA in writing of any intent to discontinue providing official 
service at least 72 hours prior to discontinuation. GIPSA proposed to 
add this requirement to the section of the regulations concerning 
responsibilities of delegated States (7 CFR 800.195(f)).

Emergency Waivers

    The Reauthorization Act amended the USGSA (7 U.S.C 77(a)(1)) to 
state, ``The Secretary shall waive the foregoing requirement [that all 
grain exported from the U.S. be officially inspected and weighed] in 
emergency or other circumstances that would not impair the objectives 
of this chapter whenever the parties to a contract for such shipment 
mutually agree to the waiver and documentation of such agreement is 
provided to the Secretary prior to shipment.'' This change to the USGSA 
substituted the word ``shall'' in place of the former word ``may,'' 
indicating that GIPSA no longer has discretion to approve waivers of 
official inspection and weighing requirements in emergencies. For this 
reason, GIPSA determined that it is important to clarify what 
constitutes an emergency.
    In the proposed rule, GIPSA proposed to define the term 
``emergency'' in 7 CFR 800.00 as ``a situation outside the control of 
the Service or a delegated State that prevents prompt issuance of 
certificates in accordance with Sec.  800.160(c).'' The proposed rule 
linked the definition of ``emergency'' to the timely issuance of 
certificates. Upon further reflection, linking waivers to certification 
does not cover situations where no service is provided. Certificates 
would never be issued in circumstances where no official inspection or 
weighing occurs. Accordingly, GIPSA is revising the definition of 
``emergency'' from the proposed rule to more closely tie emergency 
situations to the ability of GIPSA or a delegated State to provide 
official services in a timely manner when requested. The issuance of 
certificates, as described in 7 CFR 800.160(c), provides that a 
certificate must be issued by the close of business on the next 
business day after inspection or weighting. The proposed regulation 
incorporated that time period. Currently, 7 CFR 800.18(b)(6) provides a 
24-hour period for granting a waiver for circumstances in which service 
is not available. Because GIPSA is no longer linking emergency waivers 
with only the issuance of certificates in 800.160(c), GIPSA has decided 
to set the determination for emergency waivers based on this same time 
frame as 800.18(b)(6).
    Timely service delivery ensures that GIPSA will continue to 
facilitate the marketing of cereals and oilseeds and issue certificates 
in accordance with the regulations. To that end, the emergency waiver 
provisions provide a mechanism for grain shipments to continue in a 
situation that prevents service delivery within 24 hours of the 
scheduled service time.

Comment Review

    GIPSA received nine comments in response to the proposed rule 
published January 25, 2016, in the Federal Register (81 FR 3970). One 
comment was a request for extension of the comment period, which GIPSA 
granted on February 24, 2016 (81 FR 9122). Two grain industry 
associations submitted a joint comment, which was supported by an 
additional submission from several other grain industry associations. 
Other comments were submitted by an association of official inspection 
agencies, a farm organization, a grain elevator operator, and two 
private individuals, one of whom submitted two separate comments. Two 
of the eight comments concerned quinoa and rice standards, commodities 
which are not covered under the USGSA and this rulemaking. All comments 
were

[[Page 49857]]

supportive of the proposed rule, with some suggested changes to the 
proposed regulations. Suggestions are addressed below in the order they 
appear in the regulations.

Emergency Waivers (7 CFR 800.0 and 18)

    Several commenters suggested changes to GIPSA's proposed definition 
of the term ``emergency.'' The grain industry associations suggested 
that GIPSA remove the terms ``outside of the control of the Service or 
a delegated State'' from the definition. They felt this would allow 
GIPSA to use excuses to avoid issuing emergency waivers. The farm 
organization commented that waivers of official inspection and 
weighing, even in emergency situations, could impair the objectives of 
the USGSA. They suggested that GIPSA define ``emergency,'' as narrowly 
as possible.
    GIPSA notes that the intent of Congress in changing the language of 
the USGSA is to remove the Secretary's discretionary authority to deny 
emergency waivers. But, GIPSA does not agree with the industry 
associations' comment that GIPSA does not have the authority to define 
the term through the rulemaking process. Without a concrete definition, 
what constitutes an emergency is ambiguous and requires clarification.
    For example, the industry associations' suggestion that any 
situation that prevents service should constitute an emergency is far 
too broad. This suggestion makes possible ``emergency'' situations in 
cases where the applicant or other interested party could have 
otherwise taken steps to allow official inspection or weighing to 
occur. GIPSA does agree, however, with the industry associations' 
comment that whether the situation is under the control of GIPSA should 
not matter for determining an emergency. But, GIPSA also agrees with 
the farm organization's comment that excessive waivers could impair the 
USGSA as they allow grain to be exported from the U.S. without official 
inspection or weighing.
    Therefore, GIPSA finds it important to define ``emergency'' in the 
regulations to prevent future confusion over what does and does not 
constitute an emergency. GIPSA is adopting a definition of 
``emergency'' to describe situations outside of the control of the 
applicant for service, as defined in the regulations. Under this 
definition, applicants would still be responsible for complying with 
the requirements for obtaining official service listed in 7 CFR 800.46.

Waivers for Other Circumstances (7 CFR 800.18)

    The industry associations and farm organization both addressed the 
issuance of waivers in circumstances other than emergencies. The 
industry associations point out that the language of the USGSA provides 
for mandatory waivers in instances other than emergencies for ``other 
circumstances that would not impair the objectives of the USGSA when 
the buyer and seller agree to waive official inspection and weighing 
requirements.'' The associations requested that GIPSA revise the 
language in 7 CFR 800.18(b)(7)(A) and (B) to be inclusive of this. The 
associations contend that waivers must be granted regardless of whether 
an ``emergency'' exists. The farm organization maintains that by 
allowing grain to ship without certification of quality or quantity, 
waivers impair the objectives of the USGSA and should not be granted in 
non-emergency situations.
    7 CFR 800.18 provides for two categories of waivers: (1) Emergency 
and (2) other circumstances that do not impair the objectives of the 
USGSA. The Reauthorization Act removed GIPSA's discretionary authority 
to approve such waivers but added to the second category the condition 
that the parties to a contract must mutually agree to the waiver and 
provide documentation to GIPSA. The proposed rule incorporated portions 
of this language in 7 CFR 800.18, but review of the comments showed 
that this interpretation would be misconstrued to connect ``emergency 
waivers'' with the ``other circumstances'' waivers.
    In the Congressional findings and declaration of policy (7 U.S.C. 
74), the objectives of the USGSA include ``that grain may be marketed 
in an orderly and timely manner and that trading in grain may be 
facilitated'' and ``that the primary objective of the official United 
States standards for grain is to certify the quality of grain as 
accurately as practicable.''
    GIPSA already provides for waivers in ``other circumstances that 
would not impair objectives of [the USGSA]'' in 7 CFR 800.18. GIPSA 
provides waivers for: Elevators that ship fewer than 15,000 metric tons 
in a calendar year, grain exported for seeding purposes, grain shipped 
in bond, grain exported by rail or truck to Canada or Mexico, grain not 
sold by grade (7 U.S.C. 77 provides for this specific category of 
waiver), service not available, and high quality specialty grain 
shipped in containers. GIPSA has determined that these circumstances, 
as described in the regulations, do not impair the objectives of the 
USGSA and that granting them helps facilitate the marketing of U.S. 
grain. GIPSA has historically used the notice-and-comment process of 
the Federal Register to determine which circumstances do not impair the 
objectives of the USGSA. Soliciting public opinion is the best method 
for determining other classes of waivers that do not impair the 
objectives of the USGSA. GIPSA agrees with the farm organization that 
waivers run counter to the objective of certifying grain as accurately 
as practicable and that excessive waivers would lead to a loss of 
confidence in U.S. exports. Provided that parties reach mutual 
agreement and provide notice to GIPSA, the amended USGSA requires GIPSA 
to consider what other circumstances for waivers would not impair the 
objectives of the USGSA. Additional general regulation is not required. 
For these reasons, GIPSA is omitting the proposed sections 
800.118(b)(7)(B) & (C) from the final rule and is not adding a new 
blanket category of waivers for situations in which the buyer and 
seller agree to waive official inspection or Class X weighing.

Fees for Official Inspection and Weighing (7 CFR 800.71)

    The grain industry associations recommend that GIPSA use the 
midpoint of the 3 to 6 month reserve figure as the determination of 
when fees are to be adjusted. They suggest that fees should be raised 
or lowered based on whether they exceed or fall below 4.5 months 
reserve. They agreed with GIPSA's proposal of 2 percent increase per $1 
million above or below the target amount, though they disagreed with 
GIPSA's proposal of a 5 percent limit per year on increases or 
decreases and suggested there be no limit.
    GIPSA agrees with the recommendation of setting the trigger for 
adjusting fees at the midpoint of 4.5 months reserve. This target 
should better help GIPSA to maintain a 3 to 6 month operating reserve. 
GIPSA disagrees with the grain industry associations' suggestion that 
there be no limit. GIPSA believes that a yearly limit on fee increases 
and decreases is necessary to provide a more stable fee structure from 
year to year, which affects all sectors of the industry. While a large 
decrease would likely be welcomed by producers, marketers, and 
consumers, GIPSA believes that the possibility of a large increase in 
future years would be untenable to these same groups. In the April 15, 
2013, fee rule (78 FR 22151), GIPSA increased fees by 5 percent in the 
first year and by 2 percent in each ensuing year, in order

[[Page 49858]]

to minimize the impact of a large increase. GIPSA feels that the annual 
5 percent cap follows this precedent of minimizing the impact of large 
fee changes. Moreover, if the monthly operating reserve falls outside 
the 3 to 6 month reserve by an amount that cannot be adjusted by the 
automatic corrections established in this regulation, then GIPSA will 
reconsider the fees through additional rulemaking.
    The grain industry associations recommended that GIPSA suspend the 
fee for supervision of official agency inspection and weighing, which 
GIPSA has done with a notice in the June 28, 2016, edition of the 
Federal Register (81 FR 41790). Their recommendations for changes to 
fees for rice and commodity inspections fall outside the scope of this 
rulemaking.
    The grain industry associations recommended that GIPSA perform 
annual reviews of all fees in Schedule A of 7 CFR 800.71 in order to 
keep them in balance with each other. GIPSA currently conducts such a 
review approximately every five years. GIPSA proposed adding language 
to the regulations declaring its intent to continue periodic reviews. 
These reviews are intended to ensure that the fees for service are 
closely aligned with GIPSA's costs to provide these services. These 
reviews, along with departmental approval, comment solicitation, and 
comment review are often lengthy and costly processes. Because the 
automatic increases and decreases of all fees should maintain a 3 to 6 
month operating reserve, GIPSA believes a complete review of fees every 
year would impose unnecessary time and money costs that would exceed 
any potential gain to stakeholders.
    The grain industry associations recommended that GIPSA perform an 
annual review of expenses and work to bring those expenses down. They 
also mentioned that GIPSA should publish financial data for the 
preceding fiscal year by the beginning of the ensuing calendar year.
    GIPSA is aware that the export grain industry is highly competitive 
and operates on slim margins. Accordingly, GIPSA takes measures to 
reduce costs whenever possible. In the recent past, GIPSA reduced cost 
by taking advantage of employee attrition to not fill positions after 
retirement, using intermittent and seasonal employees in export 
offices, and using alternative work schedules in order to reduce 
employee overtime hours. GIPSA publishes extensive financial data in 
its annual report to Congress. Additionally, GIPSA has made and will 
continue to make financial information available on its public Web site 
prior to the release of the annual report to Congress.

Geographic Boundary Exceptions (7 CFR 800.117)

    The commenter representing an official inspection agency 
association recommended that GIPSA change the proposed language in 7 
CFR 800.117(b)(3) to reflect the intent of Congress to remove GIPSA's 
discretion to approve waivers of official agency boundaries based on 
signed agreements. They acknowledge that GIPSA must still be notified 
of such agreements and review the agreements for compliance with the 
USGSA. Another commenter expressed support for allowing such agreements 
between adjacent official agencies. Since the Reauthorization Act 
amended the USGSA to read that ``the Secretary shall allow a designated 
official agency to cross boundary lines'' if certain provisions are met 
(7 U.S.C. 79(f)(2)), GIPSA agrees with the recommendation and is 
changing the language contained in the proposed rule.

Delegations (7 CFR 800.195)

    The grain industry association commenters recommended a few changes 
to GIPSA's proposed rule language concerning delegations of State 
agencies. They recommended that a delegated State must notify all 
affected export port locations and elevator operators, in addition to 
notifying GIPSA, 72 hours in advance of any intent to discontinue 
service. They also recommended including language requiring GIPSA to 
notify Congress within 24 hours of any disruption.
    The Reauthorization Act only requires delegated States to notify 
GIPSA of any intent to discontinue service, while requiring GIPSA to 
``immediately take such actions as are necessary to address the 
disruption and resume inspections or weighings'' (7 U.S.C. 77(d)(1)). 
Under such circumstances, it would fall on GIPSA to provide 
notification to customers. GIPSA declines to include language in the 
regulations concerning its requirement to notify Congress, as that is 
already required by the USGSA (7 U.S.C. 77(d)(2)) and inclusion in the 
regulations is unnecessary.
    Additionally, the industry commenters recommended that the reviews 
of delegated States should start no later than September 30, 2016, and 
that funding for the reviews be derived solely from appropriated funds. 
GIPSA intends to conduct formal reviews for each of the five delegated 
States mirroring the existing process that GIPSA uses to renew the 
designations of official agencies. GIPSA intends to conduct the first 
review prior to September 30, 2016, and plans to conduct reviews for 
every State before certain provisions of the USGSA are set to expire on 
October 1, 2020. GIPSA finds that the inclusion of language in the 
regulations concerning the funding of delegation review through 
appropriated funds to be unnecessary. The USGSA only authorizes user 
fees to cover the costs incidental to official inspection and weighing 
and related supervision and administration activities (7 U.S.C. 79(j) 
and 7 U.S.C. 79a(l)). Appropriated funds are authorized to perform 
compliance activities (7 U.S.C. 87h), which includes delegation 
reviews.

Final Action

    Based on the above review of comments received in response to 81 FR 
3970, GIPSA is amending the regulations of 7 CFR part 800 as outlined 
in the proposed rule, with exceptions noted in the comment review.

Executive Orders 12866 and 13563 and the Regulatory Flexibility Act

    The Office of Management and Budget has designated this rulemaking 
as not significant under Executive Order 12866, ``Regulatory Planning 
and Review'' and Executive Order 13563, ``Improving Regulation and 
Regulation Review.'' Since grain export volume can vary significantly 
from year to year, estimating the impact in any future fee changes can 
be difficult. GIPSA recognizes the need to provide predictability to 
the industry for inspection and weighing fees. While not required by 
the Reauthorization Act, this rulemaking limits the impact of a large 
annual change in fees by setting an annual cap of 5 percent for 
increases or decreases in inspection and weighing fees. The statutory 
requirement to maintain an operating reserve between 3 and 6 months of 
operating expenses ensures that GIPSA can adequately cover its costs 
without imposing an undue burden on its customers.
    Currently, GIPSA regularly reviews its user-fee financed programs 
to determine if the fees charged for performing official inspection and 
weighing services adequately cover the cost of providing those 
services. This policy remains unchanged in this proposed regulation. 
GIPSA will continue to seek out cost saving measures and implement 
appropriate changes to reduce its costs to provide alternatives to fee 
increases.
    This rulemaking is unlikely to have an annual effect of $100 
million or more or adversely affect the economy. The changes to the 
regulation in this

[[Page 49859]]

rulemaking are a direct response to Congressional action. Also, under 
the requirements set forth in the Regulatory Flexibility Act (RFA) (5 
U.S.C. 601-12), GIPSA has considered the economic impact of this 
rulemaking on small entities. The purpose of the Regulatory Flexibility 
Act is to fit regulatory actions to the scale of businesses subject to 
such actions. This ensures that small businesses will not be unduly or 
disproportionately burdened. GIPSA is issuing this rulemaking solely 
because the Reauthorization Act amended the USGSA, which requires that 
the regulations be updated to reflect the changes made to the USGSA by 
the Reauthorization Act.
    The Small Business Administration (SBA) defines small businesses by 
their North American Industry Classification System Codes (NAICS). This 
rulemaking affects customers of GIPSA's official inspection and 
weighing services in the domestic and export grain markets (NAICS code 
115114). Fees for that program are in Schedules A (Tables 1-3) and B of 
section 800.71 of GIPSA's regulations (7 CFR 800.71).
    Under the USGSA, all grain exported from the United States must be 
officially inspected and weighed. GIPSA provides mandatory inspection 
and weighing services at 45 export facilities in the United States and 
7 facilities for U.S. grain transshipped through Canadian ports. Five 
delegated State agencies provide mandatory inspection and weighing 
services at 13 facilities. All of these facilities are owned by multi-
national corporations, large cooperatives, or public entities that do 
not meet the requirements for small entities established by the SBA. 
Further, the provisions of this rulemaking apply equally to all 
entities. The USGSA requires the registration of all persons engaged in 
the business of buying grain for sale in foreign commerce. In addition, 
those persons who handle, weigh, or transport grain for sale in foreign 
commerce must also register. The regulations found at 7 CFR 800.30 
define a foreign commerce grain business as persons who regularly 
engage in buying for sale, handling, weighing, or transporting grain 
totaling 15,000 metric tons or more during the preceding or current 
calendar year. Currently, there are 108 businesses registered to export 
grain, most of which are not small businesses.
    Most users of the official inspection and weighing services do not 
meet the SBA requirements for small entities. Further, GIPSA is 
required by statute to make services available to all applicants and to 
recover the costs of providing such services as nearly as practicable, 
while maintaining a 3 to 6 month operating reserve. There are no 
additional reporting, record keeping, or other compliance requirements 
imposed upon small entities as a result of this rulemaking. GIPSA has 
not identified any other federal rules which may duplicate, overlap, or 
conflict with this rulemaking. Because this rulemaking does not have a 
significant economic impact on a substantial number of small entities, 
an initial regulatory flexibility analysis is not provided.

Executive Order 12988

    This rulemaking has been reviewed under Executive Order 12988, 
``Civil Justice Reform.'' This rulemaking does not preempt State or 
local laws, regulations, or policies unless they represent an 
irreconcilable conflict with this rulemaking. This rulemaking does not 
have retroactive effect.

Executive Order 13132

    This rulemaking has been reviewed under Executive Order 13132, 
``Federalism.'' The policies in this rulemaking do not have any 
substantial direct effect on States, on the relationship between 
federal government and the States, or on the distribution of power and 
responsibilities among various levels of government, except as required 
by law. This rulemaking does not impose substantial direct compliance 
costs on State and local governments. Because States already retain 
records for their ordinary operations, Sec.  800.195(g)(4) should not 
have a significant impact on State governments. Therefore, consultation 
with the States is not required.

Executive Order 13175

    This rulemaking has been reviewed under Executive Order 13175, 
``Consultation and Coordination with Indian Tribal Governments.'' To 
our knowledge, this rulemaking does not have tribal implications that 
require tribal consultation under Executive Order 13175. If a Tribe 
requests consultation, GIPSA will work with the USDA Office of Tribal 
Relations to ensure meaningful consultation is provided where changes, 
additions, and modifications identified in this rulemaking are not 
expressly mandated by the Reauthorization Act.

Paperwork Reduction Act

    In compliance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
chapter 35), the information collection and record keeping requirements 
included in this rulemaking have been approved by the OMB under control 
number 0580-0013, which expires on January 31, 2018.
    GIPSA is committed to complying with the Government Paperwork 
Elimination Act, which requires Government agencies in general to 
provide the public the option of submitting information or transacting 
business electronically to maximum extent possible.

E-Government Compliance

    GIPSA is committed to complying with the E-Government Act, to 
promote the use of the Internet and other information technologies to 
provide increased opportunities for citizen access to Government 
information and services, and for other purposes.

List of Subjects in 7 CFR Part 800

    Administrative practice and procedure, Exports, Grains, Reporting 
and recordkeeping requirements.

    For the reasons set out in the preamble, GIPSA amends 7 CFR part 
800 as follows:

PART 800--GENERAL REGULATIONS

0
1. The authority citation for part 800 continues to read as follows:

    Authority: 7 U.S.C. 71-87k.


0
2. In Sec.  800.0, in paragraph (b), add in alphabetical order 
definitions for ``Emergency'', ``Field Office administrative costs'', 
``National program administrative costs'', ``Operating expenses'', and 
``Operating reserve'' to read as follows:


Sec.  800.0  Meaning of terms.

* * * * *
    (b) * * *
    Emergency. A situation that is outside the control of the applicant 
that prevents official inspection or weighing services within 24 hours 
of the scheduled service time.
* * * * *
    Field Office administrative costs. The costs of management, 
support, and maintenance of a Field Office, including, but not limited 
to, the management and administrative support personnel, rent, and 
utilities. This does not include any costs directly related to 
providing original or review inspection or weighing services.
* * * * *
    National program administrative costs. The costs of national 
management and support of official grain inspection and/or weighing. 
This does not include the Field Office administrative costs and any 
costs directly related to providing service.
* * * * *

[[Page 49860]]

    Operating expenses. The total costs to the Service to provide 
official grain inspection and/or weighing services.
    Operating reserve. The amount of funds the Service has available to 
provide official grain inspection and/or weighing services.
* * * * *


Sec.  800.15  [Amended]

0
3. Amend Sec.  800.15 by removing paragraph (b)(2) and redesignating 
paragraphs (b)(3) and (4) as (b)(2) and (3), respectively.

0
4. In Sec.  800.18, revise paragraph (b)(7) to read as follows:


Sec.  800.18  Waivers of the official inspection and Class X weighing 
requirements.

* * * * *
    (b) * * *
    (7) Emergency waiver. (i) Upon request, the requirements for 
official inspection or Class X weighing will be waived whenever the 
Service determines that an emergency exists that precludes official 
inspection or Class X weighing;
    (ii) To qualify for an emergency waiver, the exporter or elevator 
operator must submit a timely written request to the Service for the 
emergency waiver and also comply with all conditions that the Service 
may require.
* * * * *

0
5. Revise Sec.  800.71 to read as follows.


Sec.  800.71  Fees assessed by the Service.

    (a) Official inspection and weighing services. The fees shown in 
Schedule A of paragraph (a)(1) of this section apply to official 
inspection and weighing services performed by FGIS in the U.S. and 
Canada. The fees shown in Schedule B of paragraph (a)(2) of this 
section apply to official domestic inspection and weighing services 
performed by delegated States and designated agencies, including land 
carrier shipments to Canada and Mexico. The fees charged to delegated 
States by the Service are set forth in the State's Delegation of 
Authority document. Failure of a delegated State or designated agency 
to pay the appropriate fees to the Service within 30 days after 
becoming due will result in an automatic termination of the delegation 
or designation. The delegation or designation may be reinstated by the 
Service if fees that are due, plus interest and any further expenses 
incurred by the Service because of the termination, are paid within 60 
days of the termination.
    (1) Schedule A--Fees for official inspection and weighing services 
performed in the United States and Canada, effective October 1, 2015. 
Canada fees include the noncontract hourly rate, the Toledo Field 
Office tonnage fee, and the actual cost of travel.

    Table 1 of Schedule A--Fees for Official Services Performed at an Applicant's Facility in an Onsite FGIS
                                                 Laboratory \1\
----------------------------------------------------------------------------------------------------------------
                                                     Monday to       Monday to       Saturday,
                                                  Friday (6 a.m.  Friday (6 p.m.    Sunday, and      Holidays
                                                    to 6 p.m.)      to 6 a.m.)     overtime \2\
----------------------------------------------------------------------------------------------------------------
(i) Inspection and Weighing Services Hourly
 Rates (per service representative):
    1-year contract ($ per hour)................          $40.20          $42.10          $48.20          $71.40
    Noncontract ($ per hour)....................           71.40           71.40           71.40           71.40
(ii) Additional Tests (cost per test, assessed
 in addition to the hourly rate): \3\
    (A) Aflatoxin (rapid test kit method).......  ..............  ..............  ..............           11.40
    (B) Aflatoxin (rapid test kit method-         ..............  ..............  ..............            9.40
     applicant provides kit) \4\................
    (C) All other Mycotoxins (rapid test kit      ..............  ..............  ..............           20.80
     method)....................................
    (D) All other Mycotoxins (rapid test kit      ..............  ..............  ..............           18.80
     method-applicant provides kit) \4\.........
    (E) NIR or NMR Analysis (protein, oil,        ..............  ..............  ..............            2.70
     starch, etc.)..............................
    (F) Waxy corn (per test)....................  ..............  ..............  ..............            2.70
    (G) Fees for other tests not listed above
     will be based on the lowest noncontract
     hourly rate
    (H) Other services
        (1) Class Y Weighing (per carrier):
            (i) Truck/container.................  ..............  ..............  ..............            0.70
            (ii) Railcar........................  ..............  ..............  ..............            1.70
            (iii) Barge.........................  ..............  ..............  ..............            3.00
(iii) Tonnage Fee (assessed in addition to all
 other applicable fees, only one tonnage fee
 will be assessed when inspection and weighing
 services are performed on the same carrier):
    (A) All outbound carriers serviced by the
     specific Field Office (per-metric ton):
        (1) League City.........................  ..............  ..............  ..............           0.192
        (2) New Orleans.........................  ..............  ..............  ..............           0.094
        (3) Portland............................  ..............  ..............  ..............           0.191
        (4) Toledo..............................  ..............  ..............  ..............           0.306
        (5) Delegated States \5\................  ..............  ..............  ..............           0.061
        (6) Designated Agencies \5\.............  ..............  ..............  ..............           0.061
----------------------------------------------------------------------------------------------------------------
\1\ Fees apply to original inspection and weighing, re-inspection, and appeal inspection service and include,
  but are not limited to, sampling, grading, weighing, prior to loading stowage examinations, and certifying
  results performed within 25 miles of an employee's assigned duty station. Travel and related expenses will be
  charged for service outside 25 miles as found in Sec.   800.72(a).
\2\ Overtime rates will be assessed for all hours in excess of 8 consecutive hours that result from an applicant
  scheduling or requesting service beyond 8 hours, or if requests for additional shifts exceed existing
  staffing.
\3\ Appeal and re-inspection services will be assessed the same fee as the original inspection service.
\4\ Applicant must provide the test kit, instrument hardware, calibration control, and all supplies required by
  the test kit manufacturer.
\5\ Tonnage fee is assessed on export grain inspected and/or weighed, excluding land carrier shipments to Canada
  and Mexico.


[[Page 49861]]


 Table 2 of Schedule A--Services Performed at Other Than an Applicant's
                   Facility in an FGIS Laboratory 1 2
------------------------------------------------------------------------
 
------------------------------------------------------------------------
(i) Original Inspection and Weighing (Class X) Services:
    (A) Sampling only (use hourly rates from Table 1 of
     this section)
    (B) Stationary lots (sampling, grade/factor, &
     checkloading):
        (1) Truck/trailer/container (per carrier).......          $22.50
        (2) Railcar (per carrier).......................           33.30
        (3) Barge (per carrier).........................          209.10
        (4) Sacked grain (per hour per service                      0.08
         representative plus an administrative fee per
         hundredweight) (CWT)...........................
    (C) Lots sampled online during loading (sampling
     charge under (1)(i) of this table, plus):
        (1) Truck/trailer container (per carrier).......           13.50
        (2) Railcar (per carrier).......................           28.10
        (3) Barge (per carrier).........................          143.00
        (4) Sacked grain (per hour per service                      0.08
         representative plus an administrative fee per
         hundredweight) (CWT)...........................
    (D) Other services:
        (1) Submitted sample (per sample--grade and                13.50
         factor)........................................
        (2) Warehouseman inspection (per sample)........           23.60
        (3) Factor only (per factor--maximum 2 factors).            6.60
        (4) Checkloading/condition examination (use                 0.08
         hourly rates from Table 1 of this section, plus
         an administrative fee per hundredweight if not
         previously assessed) (CWT).....................
        (5) Re-inspection (grade and factor only.                  14.60
         Sampling service additional, item (1)(i) of
         this table)....................................
        (6) Class X Weighing (per hour per service                 71.40
         representative)................................
    (E) Additional tests (excludes sampling):
        (1) Aflatoxin (rapid test kit method)...........           33.60
        (2) Aflatoxin (rapid test kit method--applicant            31.60
         provides kit) \3\..............................
        (3) All other Mycotoxins (rapid test kit method)           43.20
        (4) All other Mycotoxins (rapid test kit method--          41.20
         applicant provides kit) \3\....................
        (5) NIR or NMR Analysis (protein, oil, starch,             11.40
         etc.)..........................................
        (6) Waxy corn (per test)........................           11.40
        (7) Canola (per test-00 dip test)...............           11.40
        (8) Pesticide Residue Testing: \4\
            (i) Routine Compounds (per sample)..........          240.90
            (ii) Special Compounds (Subject to                    128.40
             availability)..............................
        (9) Fees for other tests not listed above will
         be based on the lowest noncontract hourly rate
         from Table 1 of this section...................
(ii) Appeal inspection and review of weighing service
 \5\
    (A) Board Appeals and Appeals (grade and factor)               91.50
        (1) Factor only (per factor--max 2 factors).....           48.20
        (2) Sampling service for Appeals additional
         (hourly rates from Table 1 of this section)....
    (B) Additional tests (assessed in addition to all
     other applicable tests):
        (1) Aflatoxin (rapid test kit method)...........           33.60
        (2) Aflatoxin (rapid test kit method--applicant            31.60
         provides kit) \3\..............................
        (3) All other Mycotoxins (rapid test kit method)           52.60
        (4) All other Mycotoxins (rapid test kit method--          50.60
         applicant provides kit) \3\....................
        (5) NIR or NMR Analysis (protein, oil, starch,             19.80
         etc.)..........................................
        (6) Sunflower oil (per test)....................           19.80
        (7) Mycotoxin (per test-HPLC)...................          157.30
        (8) Pesticide Residue Testing: \4\
            (i) Routine Compounds (per sample)..........          240.90
            (ii) Special Compounds (Subject to                    128.40
             availability)..............................
        (9) Fees for other tests not listed above will
         be based on the lowest noncontract hourly rate
         from Table 1 of this section.
    (C) Review of weighing (per hour per service                   92.30
     representative)....................................
(iii) Stowage examination (service-on-request): \4\
    (A) Ship (per stowage space) (minimum $285.00 per              57.00
     ship)..............................................
    (B) Subsequent ship examinations (same as original)            57.00
     (minimum $171.00 per ship).........................
    (C) Barge (per examination).........................           45.80
    (D) All other carriers (per examination)............           18.00
------------------------------------------------------------------------
\1\ Fees apply to original inspection and weighing, re-inspection, and
  appeal inspection service and include, but are not limited to,
  sampling, grading, weighing, prior to loading stowage examinations,
  and certifying results performed within 25 miles of an employee's
  assigned duty station. Travel and related expenses will be charged for
  service outside 25 miles as found in Sec.   800.72(a).
\2\ An additional charge will be assessed when the revenue from the
  services in Schedule A, Table 2, does not cover what would have been
  collected at the applicable hourly rate as provided in Sec.
  800.72(b).
\3\ Applicant must provide the test kit, instrument hardware,
  calibration control, and all supplies required by the test kit
  manufacturer.
\4\ If performed outside of normal business, 1\1/2\ times the applicable
  unit fee will be charged.
\5\ If, at the request of the Service, a file sample is located and
  forwarded by the Agency, the Agency may, upon request, be reimbursed
  at the rate of $3.50 per sample by the Service.


            Table 3 of Schedule A--Miscellaneous Services \1\
------------------------------------------------------------------------
 
------------------------------------------------------------------------
(i) Grain grading seminars (per hour per      $71.40
 service representative) \2\.
(ii) Certification of diverter-type           71.40
 mechanical samplers (per hour per service
 representative) \2\.
(iii) Special weighing services (per hour
 per service representative): \2\
    (A) Scale testing and certification.....  92.90

[[Page 49862]]

 
    (B) Scale testing and certification of    92.90
     railroad track scales.
    (C) Evaluation of weighing and material   92.90
     handling systems.
    (D) NTEP Prototype evaluation (other      92.90
     than Railroad Track Scales).
    (E) NTEP Prototype evaluation of          92.90
     Railroad Track Scale.
    (F) Use of GIPSA railroad track scale     557.30
     test equipment per facility for each
     requested service. (Track scales tested
     under the Association of American
     Railroads agreement are exempt.)
    (G) Mass standards calibration and re-    92.90
     verification.
    (H) Special projects....................  92.90
(iv) Foreign travel (hourly fee) \3\........  92.90
(v) Online customized data service:
    (A) One data file per week for 1 year...  557.30
    (B) One data file per month for 1 year..  334.40
(vi) Samples provided to interested parties   3.50
 (per sample).
(vii) Divided-lot certificates (per           2.20
 certificate).
(viii) Extra copies of certificates (per      2.20
 certificate).
(ix) Faxing (per page)......................  2.20
(x) Special mailing.........................  Actual Cost.
(xi) Preparing certificates onsite or during
 other than normal business hours (use
 hourly rates from Table 1).
------------------------------------------------------------------------
\1\ Any requested service that is not listed will be performed at $71.40
  per hour.
\2\ Regular business hours--Monday through Friday--service provided at
  other than regular business hours will be charged at 11/2 times the
  applicable hourly rate. (See the definition of ``business day'' in
  Sec.   800.0(b))
\3\ Foreign travel charged hourly fee of $92.90 plus travel, per diem,
  and related expenditures.

    (2) Schedule B--Fees for FGIS Supervision of Official Inspection 
and Weighing Services Performed by Delegated States and/or Designated 
Agencies in the United States. The supervision fee charged by the 
Service is $0.011 per metric ton of domestic U.S. grain shipments 
inspected and/or weighed, including land carrier shipments to Canada 
and Mexico.
    (b) Annual review of fees. For each calendar year, starting with 
2017, the Service will review the fees in Schedule A in paragraph 
(a)(1) of this section and publish fees effective January 1 of each 
year according to the following:
    (1) Tonnage fees. Tonnage fees will consist of the national tonnage 
fee and local tonnage fees and will be calculated and rounded to the 
nearest $0.001 per metric ton. All outbound grain officially inspected 
and/or weighed by the Field Offices in New Orleans, League City, 
Portland, and Toledo will be assessed the national tonnage fee plus the 
appropriate local tonnage fee. Export grain officially inspected and/or 
weighed by delegated States and official agencies, excluding land 
carrier shipments to Canada and Mexico, will be assessed the national 
tonnage fee only. The fees will be set according to the following:
    (i) National tonnage fee. The national tonnage fee is the national 
program administrative costs for the previous fiscal year divided by 
the average yearly tons of export grain officially inspected and/or 
weighed by delegated States and designated agencies, excluding land 
carrier shipments to Canada and Mexico, and outbound grain officially 
inspected and/or weighed by the Service during the previous 5 fiscal 
years.
    (ii) Local tonnage fee. The local tonnage fee is the Field Office 
administrative costs for the previous fiscal year divided by the 
average yearly tons of outbound grain officially inspected and/or 
weighed by the Field Office during the previous 5 fiscal years. The 
local tonnage fee is calculated individually for each Field Office.
    (2) Operating reserve. In order to maintain an operating reserve 
not less than 3 and not more than 6 months, the Service will review the 
value of the operating reserve at the end of each fiscal year and 
adjust fees according to the following:
    (i) Less than 4.5 months. If the operating reserve is less than 4.5 
times the monthly operating expenses, the Service will increase all 
fees in Schedule A in paragraph (a)(1) of this section by 2 percent for 
each $1,000,000, rounded down, that the operating reserve is less than 
4.5 times the monthly operating expense, with a maximum increase of 5 
percent annually. Except for fees based on tonnage or hundredweight, 
all fees will be rounded to the nearest $0.10.
    (ii) Greater than 4.5 months. If the operating reserve is greater 
than 4.5 times the monthly operating expenses, the Service will 
decrease all fees in Schedule A in paragraph (a)(1) of this section by 
2 percent for each $1,000,000, rounded down, that the operating reserve 
is greater than 4.5 times the monthly operating expense, with a maximum 
decrease of 5 percent annually. Except for fees based on tonnage or 
hundredweight, all fees will be rounded to the nearest $0.10.
    (c) Periodic review. The Service will periodically review and 
adjust all fees in Schedules A and B in paragraphs (a)(1) and (2) of 
this section, respectively, as necessary to ensure they reflect the 
true cost of providing and supervising official service. This process 
will incorporate any fee adjustments from paragraph (b) of this 
section.
    (d) Miscellaneous fees for other services--(1) Registration 
certificates and renewals. (i) The nature of your business will 
determine the fees that your business must pay for registration 
certificates and renewals:
    (A) If you operate a business that buys, handles, weighs, or 
transports grain for sale in foreign commerce, you must pay $135.00.
    (B) If you operate a business that buys, handles, weighs, or 
transports grain for sale in foreign commerce and you are also in a 
control relationship (see definition in section 17A(b)(2) of the Act) 
with respect to a business that buys, handles, weighs, or transports 
grain for sale in interstate commerce, you must pay $270.00.
    (ii) If you request extra copies of registration certificates, you 
must pay $2.20 for each copy.
    (2) Designation amendments. If you submit an application to amend a 
designation, you must pay $75.00.
    (3) Scale testing organizations. If you submit an application to 
operate as a scale testing organization, you must pay $250.00.


Sec.  800.72  [Amended]

0
6. In Sec.  800.72(b), remove the reference ``Sec.  800.71'' from the 
first sentence and add in its place the reference ``Sec.  
800.71(a)(1).''

0
7. Amend Sec.  800.117 by removing paragraph (b)(2), redesignating 
paragraph (b)(3) as (b)(2), and adding a new paragraph (b)(3) to read 
as follows:

[[Page 49863]]

Sec.  800.117  Who shall perform original services.

* * * * *
    (b) * * *
    (3) Written agreement. If the assigned official agency agrees in 
writing with the adjacent official agency to waive the current 
geographic area restriction at the request of the applicant for 
service, the adjacent official agency may provide service at a 
particular location upon providing written notice to the Service, and 
the Service determines that the written agreement conforms to the 
provisions in the Act.
* * * * *

0
8. In Sec.  800.175, revise paragraph (a) to read as follows:


Sec.  800.175  Termination of licenses.

    (a) Term of license. Each license shall terminate in accordance 
with the termination date shown on the license and as specified in 
paragraph (b) of this section. The termination date for a license shall 
be no less than 5 years or more than 6 years after the issuance date 
for the initial license; thereafter, every 5 years. Upon request of a 
licensee and for good cause shown, the termination date may be advanced 
or delayed by the Administrator for a period not to exceed 60 days.
* * * * *

0
9. In Sec.  800.195, add paragraphs (f)(11) and (g)(4) to read as 
follows:


Sec.  800.195  Delegations.

* * * * *
    (f) * * *
    (11) Notification to Secretary. A delegated State shall notify the 
Secretary of its intention to temporarily discontinue official 
inspection and/or weighing services for any reason, except in the case 
of a major disaster. The delegated State must provide written 
notification to the Service no less than 72 hours in advance of the 
discontinuation date.
* * * * *
    (g) * * *
    (4) Review. At least once every 5 years, a delegated State shall 
submit to a review of its delegation by the Service in accordance with 
the criteria and procedures for delegation prescribed in section 7(e) 
of the Act, this section of the regulations, and the instructions. The 
Administrator may revoke the delegation of a State according to this 
subsection if the State fails to meet or comply with any of the 
criteria for delegation set forth in the Act, regulations, and 
instructions.
* * * * *

0
10. In Sec.  800.196, revise paragraphs (e)(2)(ii) and (iii), add 
paragraph (e)(2)(iv), and revise paragraph (h)(1)(i) to read as 
follows:


Sec.  800.196  Designations.

* * * * *
    (e) * * *
    (2) * * *
    (ii) The applicant meets the conditions and criteria specified in 
the Act and regulations;
    (iii) The applicant is better able than any other applicant to 
provide official services; and
    (iv) The applicant addresses concerns identified during 
consultations that the Service conducts with applicants for service to 
the satisfaction of the Service.
* * * * *
    (h) Termination and renewal--(1) Every 5 years--(i) Termination. A 
designation shall terminate at a time specified by the Administrator, 
but not later than 5 years after the effective date of the designation. 
A notice of termination shall be issued by the Service to a designated 
agency at least 120 calendar days in advance of the termination date. 
The notice shall provide instructions for requesting renewal of the 
designation. Failure to receive a notice from the Service shall not 
exempt a designated agency from the responsibility of having its 
designation renewed on or before the specified termination date.
* * * * *

0
11. In Sec.  800.216, revise paragraph (c) to read as follows:


Sec.  800.216  Activities that shall be monitored.

* * * * *
    (c) Grain handling activities. Grain handling activities subject to 
monitoring for compliance with the Act include, but are not limited to:
    (1) Shipping export grain without inspection or weighing;
    (2) Violating any Federal law with respect to the handling, 
weighing, or inspection of grain;
    (3) Deceptively loading, handling, weighing, or sampling grain; and
    (4) Exporting grain without a certificate of registration.
* * * * *

Larry Mitchell,
Administrator, Grain Inspection, Packers and Stockyards Administration.
[FR Doc. 2016-17762 Filed 7-28-16; 8:45 am]
 BILLING CODE 3410-KD-P
49855

Rules and Regulations Federal Register
Vol. 81, No. 146

Friday, July 29, 2016

This section of the FEDERAL REGISTER provisions of the USGSA (7 U.S.C. 71– Fees
contains regulatory documents having general 87k) to 2020, the Reauthorization Act GIPSA last made changes to its fee
applicability and legal effect, most of which also made several changes to the
are keyed to and codified in the Code of schedule on May 1, 2013 (78 FR 22151–
existing law. Therefore, GIPSA issued a 66). At that time, GIPSA determined
Federal Regulations, which is published under proposed rule in the Federal Register to
50 titles pursuant to 44 U.S.C. 1510. that the existing fee schedule for
amend 7 CFR part 800 to comply with inspection and weighing services would
The Code of Federal Regulations is sold by the amendments made by the not generate sufficient revenue to
the Superintendent of Documents. Prices of Reauthorization Act and solicited adequately cover program costs through
new books are listed in the first FEDERAL comments from interested parties (81 FR fiscal year 2017. To correct this problem
REGISTER issue of each week. 3970). Specifically, GIPSA proposed to: and to build an operating reserve,
• Remove the requirement to GIPSA increased fees by 5 percent in
officially weigh inbound barge fiscal year 2013 and an additional 2
DEPARTMENT OF AGRICULTURE shipments at export port locations percent for each successive year through
(§ 800.15 and § 800.216); fiscal year 2017.
Grain Inspection, Packers and • approve requests for waivers of In addition, GIPSA restructured its
Stockyards Administration official inspection and weighing tonnage fees to more accurately reflect
requirements for export grain in the administrative and supervisory costs
7 CFR Part 800 ‘‘emergencies or other circumstances at the national and local level. In order
that would not impair the objectives of to establish an equitable tonnage fee for
RIN 0580–AB24
the [USGSA] whenever the parties to a all export tonnage utilizing the official
Reauthorization of the United States contract for such shipment mutually system, GIPSA began assessing the
Grain Standards Act agree to the waiver and documentation national tonnage fee on all export grain
of such agreement is provided to the inspected and/or weighed (excluding
AGENCY: Grain Inspection Packers and Secretary prior to shipment’’ (§ 800.18); land carrier shipments to Canada and
Stockyards Administration, USDA. • base the portion of fees assessed on
Mexico) by delegated States and
ACTION: Final rule. tonnage on the 5-year rolling average of
designated agencies. GIPSA also shifted
export tonnage volume (§ 800.71);
SUMMARY: The Department of • adjust fees annually to maintain a 3 workers compensation costs from the
Agriculture (USDA) Grain Inspection, to 6 month operating reserve for national to the local level to fully reflect
Packers and Stockyards Administration inspection and supervision services where those workers compensation
(GIPSA) is revising existing regulations (§ 800.71); costs originated.
and adding new regulations under the • remove the provision that allows Prior to the Reauthorization Act,
United States Grain Standards Act applicants to request service from an GIPSA used projected future tonnage
(USGSA), as amended, in order to official agency outside an assigned volumes as a basis to calculate tonnage
comply with amendments to the USGSA geographic region after 90 days of fees. The Reauthorization Act amended
made by the Agriculture nonuse of service (§ 800.117); the USGSA to require that tonnage fees
Reauthorizations Act of 2015. • waive the geographic boundaries be based on the five-year rolling average
Specifically, this rulemaking eliminates established for official agencies between of export tonnage volumes. In order to
mandatory barge weighing, removes the two adjacent official agencies if both comply with this new tonnage fee
discretion for emergency waivers of official agencies agree in writing to the requirement, GIPSA proposed to adjust
inspection and weighing, revises waiver (§ 800.117); both the national and local tonnage fees
GIPSA’s fee structure, revises • without changing current on a yearly basis. GIPSA proposed that
exceptions to official agency geographic termination dates, terminate inspection the national tonnage fee would be the
boundaries, extends the length of licenses every 5 years instead of every national program administrative costs
licenses and designations, and imposes 3 years (§ 800.175); (the costs of management and support of
new requirements for delegated States. • require delegated States to notify official inspection and weighing) for the
GIPSA of any intent to temporarily previous fiscal year divided by the
DATES: Effective July 29, 2016. average export tonnage for the previous
discontinue official inspection or
FOR FURTHER INFORMATION CONTACT: weighing services at least 72 hours in 5 fiscal years. Also, the local tonnage
Barry Gomoll, 202–720–8286. advance, except in the case of a major fees would be the Field Office
Persons with disabilities who require disaster (§ 800.195); administrative costs (the costs of
alternative means for communication • review delegated states every 5 management, support, and maintenance
(Braille, large print, audio tape, etc.) years and certify that they comply with of each Field Office) for the previous
should contact the USDA Target Center the requirements for delegation under fiscal year divided by the average
at (202) 720–2600 (voice and TDD). the USGSA (§ 800.195); tonnage serviced by that Field Office for
asabaliauskas on DSK3SPTVN1PROD with RULES

SUPPLEMENTARY INFORMATION: • require designated official agencies the previous 5 fiscal years.
to respond to concerns identified during The Reauthorization Act further
Overview requires adjustment of all of GIPSA’s
GIPSA’s consultations with customers
On September 30, 2015, President as part of the renewal of a designation fees for the performance, supervision,
Obama signed into law the Agriculture (§ 800.196); and and administration of official inspection
Reauthorizations Act of 2015, Public • extend the minimum length of and weighing services at least annually
Law 114–54 (The Reauthorization Act). designation for official agencies from 3 to maintain a 3 to 6 month operating
In addition to extending certain years to 5 years (§ 800.196). reserve. Given that the number of

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Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Rules and Regulations
Action		Final rule.
Dates		Effective July 29, 2016.
Contact		Barry Gomoll, 202-720-8286.
FR Citation		81 FR 49855
RIN Number		0580-AB24
CFR Associated		Administrative Practice and Procedure; Exports; Grains and Reporting and Recordkeeping Requirements
81 FR 49855 - Reauthorization of the United States Grain Standards Act

DEPARTMENT OF AGRICULTUREGrain Inspection, Packers and Stockyards Administration

Federal Register Volume 81, Issue 146 (July 29, 2016)

DEPARTMENT OF AGRICULTURE
Grain Inspection, Packers and Stockyards Administration
