81_FR_54878 81 FR 54719 - Almonds Grown in California; Change in Quality Control Requirements

81 FR 54719 - Almonds Grown in California; Change in Quality Control Requirements

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 81, Issue 159 (August 17, 2016)

Page Range54719-54721
FR Document2016-19625

This rule implements a recommendation from the Almond Board of California (Board) to change the quality control requirements currently prescribed under the California almond marketing order (order). The order regulates the handling of almonds grown in California. The Board locally administers the order and is comprised of growers and handlers operating within California. This rule relaxes incoming quality requirements by increasing the inedible kernel tolerance from 0.50 percent to 2 percent. This relaxation decreases California almond handlers' disposition obligation. This change also allows handlers more flexibility in their operations while continuing to maintain quality control and ensuring compliance with the order's requirements.

Federal Register, Volume 81 Issue 159 (Wednesday, August 17, 2016)
[Federal Register Volume 81, Number 159 (Wednesday, August 17, 2016)]
[Rules and Regulations]
[Pages 54719-54721]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-19625]



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Rules and Regulations
                                                Federal Register
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having general applicability and legal effect, most of which are keyed 
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Federal Register / Vol. 81, No. 159 / Wednesday, August 17, 2016 / 
Rules and Regulations

[[Page 54719]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 981

[Doc. No. AMS-SC-16-0047; SC16-981-3 IR]


Almonds Grown in California; Change in Quality Control 
Requirements

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim rule with request for comments.

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

SUMMARY: This rule implements a recommendation from the Almond Board of 
California (Board) to change the quality control requirements currently 
prescribed under the California almond marketing order (order). The 
order regulates the handling of almonds grown in California. The Board 
locally administers the order and is comprised of growers and handlers 
operating within California. This rule relaxes incoming quality 
requirements by increasing the inedible kernel tolerance from 0.50 
percent to 2 percent. This relaxation decreases California almond 
handlers' disposition obligation. This change also allows handlers more 
flexibility in their operations while continuing to maintain quality 
control and ensuring compliance with the order's requirements.

DATES: Effective August 18, 2016; comments received by October 17, 2016 
will be considered prior to issuance of a final rule.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this 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. All 
comments should reference the document number and the date and page 
number of this issue of the Federal Register and will be made 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 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: Andrea Ricci, Marketing Specialist or 
Jeffrey Smutny, 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 Richard Lower, 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 rule is issued under Marketing Order 
No. 981, as amended (7 CFR part 981), regulating the handling of 
almonds grown in California, 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 rule in 
conformance with Executive Orders 12866, 13563, and 13175.
    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. This rule is not intended to have retroactive effect.
    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. A 
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 rule implements a recommendation from the Almond Board of 
California (Board) to change the quality control requirements currently 
prescribed under the order. This rule relaxes incoming quality 
requirements by increasing the inedible kernel tolerance from 0.50 
percent to 2 percent. This relaxation would decrease California almond 
handler's disposition obligation. This will allow handlers more 
flexibility in their operations while continuing to maintain quality 
control. In addition, this change will ensure that the reporting and 
outgoing quality requirements of the order are met. The Board 
unanimously recommended this change at its April 12, 2016, meeting.
    Section 981.42 of the almond marketing order provides authority for 
quality control regulations. Paragraph (a) of that section requires 
that almonds must be inspected prior to processing to determine the 
percentage of inedible kernels in each lot. Inedible kernels are 
defined in Sec.  981.408. The Board, with the approval of the 
Secretary, may change the approved percentage of inedible kernels for 
any crop year. Inedible kernels in excess of the approved percentage of 
the kernel weight constitute the handlers' inedible disposition weight 
obligation. Handlers must satisfy their obligation by disposing of 
inedible kernels in Board-accepted, non-human outlets such as animal 
feed or oil.
    Section 981.442(a)(4)(i) of the order's rules and regulations 
currently specifies that the weight of inedible kernels in excess of 
0.50 percent of kernel weight shall constitute the handler's 
disposition obligation. Pursuant to Sec.  981.442(a)(5), handlers must 
meet their disposition obligation by delivering inedible kernels to 
crushers, feed manufacturers, feeders, or dealers in nut wastes on 
record with the Board as accepted users.

[[Page 54720]]

    In the past several years, the total inedible kernel percentages 
have been trending lower. This is partially due to good agricultural 
practices used by growers and better technologies in handler 
facilities. At the same time, the market value of almonds has increased 
significantly. As a result, some Board-accepted outlets have started to 
clean and repurpose the disposition obligation delivered by handlers. 
After the inedible disposition is delivered to Board-accepted outlets, 
these accepted outlets provide to the Board a record of disposition 
receipt, which indicates what was received by the accepted outlet from 
handlers and how the accepted outlet disposed of the inedible 
disposition. However, such record of disposition receipt does not 
indicate whether the almonds have been pasteurized or treated for human 
consumption. Thus the action of repurposing has led to concern that the 
order's outgoing quality requirements are not being met.
    By increasing the inedible kernel tolerance, handlers' disposition 
obligation will decrease or become zero, therefore reducing the 
quantity of product delivered to those specified outlets. This action 
will also provide handlers with more control over low quality product 
allowing one handler the flexibility to transfer the larger portion of 
low quality product to another handler for further cleaning. This 
action will require completion of an interhandler transfer form and 
help with traceability of low quality product. It also will help ensure 
that any product destined for human consumption was in compliance with 
the pertinent regulations under the order.

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 action 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 6,800 almond growers in the production area 
and approximately 100 handlers subject to regulation under the 
marketing order. Small agricultural producers are defined by the Small 
Business Administration (SBA) 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 $7,500,000 (13 CFR 121.201).
    The National Agricultural Statistics Service (NASS) reported in its 
2012 Agricultural Census that there were 6,841 almond farms in the 
production area (California), of which 6,204 had bearing acres. The 
following computation provides an estimate of the proportion of 
producers (farms) and agricultural service firms (handlers) that would 
be considered small under the SBA definitions.
    The NASS Census data indicates that out of the 6,204 California 
farms with bearing acres of almonds, 4,471 (72 percent) have fewer than 
100 bearing acres.
    For the almond industry's most recently reported crop year (2014), 
NASS reported an average yield of 2,150 pounds per acre, and a season 
average grower price of $3.19 per pound. A 100-acre farm with an 
average yield of 2,150 pounds per acre would produce about 215,000 
pounds of almonds. At $3.19 per pound, that farm's production would be 
valued at $685,850. Since Census of Agriculture indicates that the 
majority of California's almond farms are smaller than 100 acres, it 
could be concluded that the majority of growers had annual receipts 
from the sale of almonds in 2014-15 of less than $685,850, which is 
below the SBA threshold of $750,000. Thus, over 70 percent of 
California's almond growers would be considered small growers according 
to SBA's definition.
    According to information supplied by the Board, approximately 30 
percent of California's almond handlers shipped almonds valued under 
$7,500,000 during the 2014-15 crop year, and would, therefore, be 
considered small handlers according to the SBA definition.
    This rule revises Sec.  981.442(a)(4)(i) of the order's 
administrative rules and regulations regarding inedible kernel 
tolerance. Specifically, this action increases the inedible kernel 
tolerance from 0.50 percent to 2 percent, effectively decreasing 
handler's disposition obligation. Authority for this action is provided 
in Sec.  981.42(a) of the order.
    Regarding the impact of this action on affected entities, 
increasing the inedible kernel tolerance reduces disposition obligation 
on handlers and provides handlers with more flexibility and control 
over the poor quality product. This rule is not expected to change 
handler inspection costs, as handlers currently are required to have 
all lots inspected to determine the percentage of inedible kernels.
    The Board considered alternatives to this action. It formed a 
taskforce to examine the current inedible program and investigate 
alternatives. The taskforce reviewed the program and recent data, 
surveyed handlers, and reported their findings to the Almond Quality 
and Food Safety Committee (Committee). Recent data showed that the 
overall inedible kernel percentages have been trending lower, 
regardless of crop size. Surveyed handlers who did not agree with the 
change raised the concern that increasing the tolerance could result in 
more poor quality almonds entering the market. The Committee discussed 
the concerns raised and concluded that changing the tolerance would 
give handlers more flexibility in maintaining quality. After discussing 
the taskforce's findings, the Committee unanimously recommended this 
increase in inedible tolerance to the Board.
    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. 0581-0178 (Vegetable and Specialty Crops.) No changes 
are necessary in those requirements as a result of this action. Should 
any changes become necessary, they would be submitted to OMB for 
approval.
    This rule will not impose any additional reporting or recordkeeping 
requirements on either small or large almond 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.
    In addition, USDA has not identified any relevant Federal rules 
that duplicate, overlap or conflict with this rule.
    Further, the Board's meeting was widely publicized throughout the 
almond industry and all interested persons were invited to attend the 
meeting and participate in Board deliberations. Like all Board 
meetings, the April 12, 2016, meeting was a public meeting and all 
entities, both large and

[[Page 54721]]

small, were able to express their views on this issue.
    Also, the Board has a number of appointed committees to review 
certain issues and make recommendations to the Board. The Board's 
Almond Quality and Food Safety Committee met on April 5, 2016, and 
discussed this issue in detail. That meeting was also a public meeting, 
and both large and small entities were able to participate and express 
their views. Finally, interested persons are invited to submit comments 
on this interim rule, including the regulatory and informational 
impacts of this action on small businesses.
    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 Richard Lower at the 
previously mentioned address in the FOR FURTHER INFORMATION CONTACT 
section.
    This rule invites comments on a change to the quality control 
requirements currently prescribed under the order. Any comments timely 
received will be considered prior to finalization of this rule.
    After consideration of all relevant material presented, including 
the Board's recommendation, and other information, it is found that 
this interim rule, as hereinafter set forth, will tend to effectuate 
the declared policy of the Act.
    Pursuant to 5 U.S.C. 553, it is also found and determined upon good 
cause that it is impracticable, unnecessary, and contrary to the public 
interest to give preliminary notice prior to putting this rule into 
effect and that good cause exists for not postponing the effective date 
of this rule until 30 days after publication in the Federal Register 
because: (1) This rule relaxes the current rules and regulations; (2) 
this rule should be in place in time for the beginning of the crop year 
on August 1; (3) the Board unanimously recommended these changes at a 
public meeting and interested parties had an opportunity to provide 
input; and (4) this rule provides a 60-day comment period and any 
comments timely received will be considered prior to finalization of 
this rule.

List of Subjects in 7 CFR Part 981

    Almonds, Marketing agreements, Nuts, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 981 is 
amended as follows:

PART 981--ALMONDS GROWN IN CALIFORNIA

0
1. The authority citation for 7 CFR part 981 continues to read as 
follows:

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

0
2. Section 981.442(a)(4)(i) is revised to read as follows:


Sec.  981.442  Quality Control.

    (a) * * *
    (4) Disposition obligation. (i) Beginning August 1, 2016, the 
weight of inedible kernels in excess of 2 percent of kernel weight 
reported to the Board of any variety received by a handler shall 
constitute that handler's disposition obligation. For any almonds sold 
inshell, the weight may be reported to the Board and the disposition 
obligation for that variety reduced proportionately.
* * * * *

    Dated: August 12, 2016.
Elanor Starmer,
Administrator, Agricultural Marketing Service.
[FR Doc. 2016-19625 Filed 8-16-16; 8:45 am]
 BILLING CODE 3410-02-P



                                                                                                                                                                                                54719

                                                Rules and Regulations                                                                                         Federal Register
                                                                                                                                                              Vol. 81, No. 159

                                                                                                                                                              Wednesday, August 17, 2016



                                                This section of the FEDERAL REGISTER                    should reference the document number                  or to be exempted therefrom. A handler
                                                contains regulatory documents having general            and the date and page number of this                  is afforded the opportunity for a hearing
                                                applicability and legal effect, most of which           issue of the Federal Register and will be             on the petition. After the hearing, USDA
                                                are keyed to and codified in the Code of                made available for public inspection in               would rule on the petition. The Act
                                                Federal Regulations, which is published under           the Office of the Docket Clerk during                 provides that the district court of the
                                                50 titles pursuant to 44 U.S.C. 1510.
                                                                                                        regular business hours, or can be viewed              United States in any district in which
                                                The Code of Federal Regulations is sold by              at: http://www.regulations.gov. All                   the handler is an inhabitant, or has his
                                                the Superintendent of Documents. Prices of              comments submitted in response to this                or her principal place of business, has
                                                new books are listed in the first FEDERAL               rule will be included in the record and               jurisdiction to review USDA’s ruling on
                                                REGISTER issue of each week.                            will be made available to the public.                 the petition, provided an action is filed
                                                                                                        Please be advised that the identity of the            not later than 20 days after the date of
                                                                                                        individuals or entities submitting the                the entry of the ruling.
                                                DEPARTMENT OF AGRICULTURE                               comments will be made public on the                      This rule implements a
                                                                                                        internet at the address provided above.               recommendation from the Almond
                                                Agricultural Marketing Service                                                                                Board of California (Board) to change
                                                                                                        FOR FURTHER INFORMATION CONTACT:
                                                                                                        Andrea Ricci, Marketing Specialist or                 the quality control requirements
                                                7 CFR Part 981                                                                                                currently prescribed under the order.
                                                                                                        Jeffrey Smutny, Regional Director,
                                                [Doc. No. AMS–SC–16–0047; SC16–981–3                    California Marketing Field Office,                    This rule relaxes incoming quality
                                                IR]                                                     Marketing Order and Agreement                         requirements by increasing the inedible
                                                                                                        Division, Specialty Crops Program,                    kernel tolerance from 0.50 percent to 2
                                                Almonds Grown in California; Change                                                                           percent. This relaxation would decrease
                                                                                                        AMS, USDA; Telephone: (559) 487–
                                                in Quality Control Requirements                                                                               California almond handler’s disposition
                                                                                                        5901, Fax: (559) 487–5906, or Email:
                                                AGENCY:  Agricultural Marketing Service,                Andrea.Ricci@ams.usda.gov or                          obligation. This will allow handlers
                                                USDA.                                                   Jeffrey.Smutny@ams.usda.gov.                          more flexibility in their operations
                                                ACTION: Interim rule with request for                      Small businesses may request                       while continuing to maintain quality
                                                comments.                                               information on complying with this                    control. In addition, this change will
                                                                                                        regulation by contacting Richard Lower,               ensure that the reporting and outgoing
                                                SUMMARY:    This rule implements a                      Marketing Order and Agreement                         quality requirements of the order are
                                                recommendation from the Almond                          Division, Specialty Crops Program,                    met. The Board unanimously
                                                Board of California (Board) to change                   AMS, USDA, 1400 Independence                          recommended this change at its April
                                                the quality control requirements                        Avenue SW., STOP 0237, Washington,                    12, 2016, meeting.
                                                currently prescribed under the                          DC 20250–0237; Telephone: (202) 720–                     Section 981.42 of the almond
                                                California almond marketing order                       2491, Fax: (202) 720–8938, or Email:                  marketing order provides authority for
                                                (order). The order regulates the handling               Richard.Lower@ams.usda.gov.                           quality control regulations. Paragraph
                                                of almonds grown in California. The                     SUPPLEMENTARY INFORMATION: This rule                  (a) of that section requires that almonds
                                                Board locally administers the order and                 is issued under Marketing Order No.                   must be inspected prior to processing to
                                                is comprised of growers and handlers                    981, as amended (7 CFR part 981),                     determine the percentage of inedible
                                                operating within California. This rule                  regulating the handling of almonds                    kernels in each lot. Inedible kernels are
                                                relaxes incoming quality requirements                   grown in California, hereinafter referred             defined in § 981.408. The Board, with
                                                by increasing the inedible kernel                       to as the ‘‘order.’’ The order is effective           the approval of the Secretary, may
                                                tolerance from 0.50 percent to 2 percent.               under the Agricultural Marketing                      change the approved percentage of
                                                This relaxation decreases California                    Agreement Act of 1937, as amended (7                  inedible kernels for any crop year.
                                                almond handlers’ disposition obligation.                U.S.C. 601–674), hereinafter referred to              Inedible kernels in excess of the
                                                This change also allows handlers more                   as the ‘‘Act.’’                                       approved percentage of the kernel
                                                flexibility in their operations while                      The Department of Agriculture                      weight constitute the handlers’ inedible
                                                continuing to maintain quality control                  (USDA) is issuing this rule in                        disposition weight obligation. Handlers
                                                and ensuring compliance with the                        conformance with Executive Orders                     must satisfy their obligation by
                                                order’s requirements.                                   12866, 13563, and 13175.                              disposing of inedible kernels in Board-
                                                DATES: Effective August 18, 2016;                          This rule has been reviewed under                  accepted, non-human outlets such as
                                                comments received by October 17, 2016                   Executive Order 12988, Civil Justice                  animal feed or oil.
                                                will be considered prior to issuance of                 Reform. This rule is not intended to                     Section 981.442(a)(4)(i) of the order’s
                                                a final rule.                                           have retroactive effect.                              rules and regulations currently specifies
                                                ADDRESSES: Interested persons are                          The Act provides that administrative               that the weight of inedible kernels in
                                                invited to submit written comments                      proceedings must be exhausted before                  excess of 0.50 percent of kernel weight
                                                concerning this rule. Comments must be                  parties may file suit in court. Under                 shall constitute the handler’s
mstockstill on DSK3G9T082PROD with RULES




                                                sent to the Docket Clerk, Marketing                     section 608c(15)(A) of the Act, any                   disposition obligation. Pursuant to
                                                Order and Agreement Division,                           handler subject to an order may file                  § 981.442(a)(5), handlers must meet
                                                Specialty Crops Program, AMS, USDA,                     with USDA a petition stating that the                 their disposition obligation by
                                                1400 Independence Avenue SW., STOP                      order, any provision of the order, or any             delivering inedible kernels to crushers,
                                                0237, Washington, DC 20250–0237; Fax:                   obligation imposed in connection with                 feed manufacturers, feeders, or dealers
                                                (202) 720–8938; or Internet: http://                    the order is not in accordance with law               in nut wastes on record with the Board
                                                www.regulations.gov. All comments                       and request a modification of the order               as accepted users.


                                           VerDate Sep<11>2014   16:08 Aug 16, 2016   Jkt 238001   PO 00000   Frm 00001   Fmt 4700   Sfmt 4700   E:\FR\FM\17AUR1.SGM   17AUR1


                                                54720            Federal Register / Vol. 81, No. 159 / Wednesday, August 17, 2016 / Rules and Regulations

                                                   In the past several years, the total                 Small agricultural producers are defined              handler inspection costs, as handlers
                                                inedible kernel percentages have been                   by the Small Business Administration                  currently are required to have all lots
                                                trending lower. This is partially due to                (SBA) as those having annual receipts of              inspected to determine the percentage of
                                                good agricultural practices used by                     less than $750,000, and small                         inedible kernels.
                                                growers and better technologies in                      agricultural service firms are defined as                The Board considered alternatives to
                                                handler facilities. At the same time, the               those whose annual receipts are less                  this action. It formed a taskforce to
                                                market value of almonds has increased                   than $7,500,000 (13 CFR 121.201).                     examine the current inedible program
                                                significantly. As a result, some Board-                    The National Agricultural Statistics               and investigate alternatives. The
                                                accepted outlets have started to clean                  Service (NASS) reported in its 2012                   taskforce reviewed the program and
                                                and repurpose the disposition obligation                Agricultural Census that there were                   recent data, surveyed handlers, and
                                                delivered by handlers. After the inedible               6,841 almond farms in the production                  reported their findings to the Almond
                                                disposition is delivered to Board-                      area (California), of which 6,204 had                 Quality and Food Safety Committee
                                                accepted outlets, these accepted outlets                bearing acres. The following                          (Committee). Recent data showed that
                                                provide to the Board a record of                        computation provides an estimate of the               the overall inedible kernel percentages
                                                disposition receipt, which indicates                    proportion of producers (farms) and                   have been trending lower, regardless of
                                                what was received by the accepted                       agricultural service firms (handlers) that            crop size. Surveyed handlers who did
                                                outlet from handlers and how the                        would be considered small under the                   not agree with the change raised the
                                                accepted outlet disposed of the inedible                SBA definitions.                                      concern that increasing the tolerance
                                                disposition. However, such record of                       The NASS Census data indicates that                could result in more poor quality
                                                disposition receipt does not indicate                   out of the 6,204 California farms with                almonds entering the market. The
                                                whether the almonds have been                           bearing acres of almonds, 4,471 (72                   Committee discussed the concerns
                                                pasteurized or treated for human                        percent) have fewer than 100 bearing                  raised and concluded that changing the
                                                consumption. Thus the action of                         acres.                                                tolerance would give handlers more
                                                repurposing has led to concern that the                    For the almond industry’s most                     flexibility in maintaining quality. After
                                                order’s outgoing quality requirements                   recently reported crop year (2014),                   discussing the taskforce’s findings, the
                                                are not being met.                                      NASS reported an average yield of 2,150               Committee unanimously recommended
                                                   By increasing the inedible kernel                    pounds per acre, and a season average                 this increase in inedible tolerance to the
                                                tolerance, handlers’ disposition                        grower price of $3.19 per pound. A 100-               Board.
                                                obligation will decrease or become zero,                acre farm with an average yield of 2,150                 In accordance with the Paperwork
                                                therefore reducing the quantity of                      pounds per acre would produce about                   Reduction Act of 1995 (44 U.S.C.
                                                product delivered to those specified                    215,000 pounds of almonds. At $3.19                   Chapter 35), the order’s information
                                                outlets. This action will also provide                  per pound, that farm’s production                     collection requirements have been
                                                handlers with more control over low                     would be valued at $685,850. Since                    previously approved by the Office of
                                                quality product allowing one handler                    Census of Agriculture indicates that the              Management and Budget (OMB) and
                                                the flexibility to transfer the larger                  majority of California’s almond farms                 assigned OMB No. 0581–0178
                                                portion of low quality product to                       are smaller than 100 acres, it could be               (Vegetable and Specialty Crops.) No
                                                another handler for further cleaning.                   concluded that the majority of growers                changes are necessary in those
                                                This action will require completion of                  had annual receipts from the sale of                  requirements as a result of this action.
                                                an interhandler transfer form and help                  almonds in 2014–15 of less than                       Should any changes become necessary,
                                                with traceability of low quality product.               $685,850, which is below the SBA                      they would be submitted to OMB for
                                                It also will help ensure that any product               threshold of $750,000. Thus, over 70                  approval.
                                                destined for human consumption was in                   percent of California’s almond growers                   This rule will not impose any
                                                compliance with the pertinent                           would be considered small growers                     additional reporting or recordkeeping
                                                regulations under the order.                            according to SBA’s definition.                        requirements on either small or large
                                                                                                           According to information supplied by               almond handlers. As with all Federal
                                                Initial Regulatory Flexibility Analysis                 the Board, approximately 30 percent of                marketing order programs, reports and
                                                   Pursuant to requirements set forth in                California’s almond handlers shipped                  forms are periodically reviewed to
                                                the Regulatory Flexibility Act (RFA) (5                 almonds valued under $7,500,000                       reduce information requirements and
                                                U.S.C. 601–612), the Agricultural                       during the 2014–15 crop year, and                     duplication by industry and public
                                                Marketing Service (AMS) has                             would, therefore, be considered small                 sector agencies.
                                                considered the economic impact of this                  handlers according to the SBA                            AMS is committed to complying with
                                                action on small entities. Accordingly,                  definition.                                           the E-Government Act, to promote the
                                                AMS has prepared this initial regulatory                   This rule revises § 981.442(a)(4)(i) of            use of the internet and other
                                                flexibility analysis.                                   the order’s administrative rules and                  information technologies to provide
                                                   The purpose of the RFA is to fit                     regulations regarding inedible kernel                 increased opportunities for citizen
                                                regulatory actions to the scale of                      tolerance. Specifically, this action                  access to Government information and
                                                businesses subject to such actions in                   increases the inedible kernel tolerance               services, and for other purposes.
                                                order that small businesses will not be                 from 0.50 percent to 2 percent,                          In addition, USDA has not identified
                                                unduly or disproportionately burdened.                  effectively decreasing handler’s                      any relevant Federal rules that
                                                Marketing orders issued pursuant to the                 disposition obligation. Authority for this            duplicate, overlap or conflict with this
                                                Act, and the rules issued thereunder, are               action is provided in § 981.42(a) of the              rule.
                                                unique in that they are brought about                   order.                                                   Further, the Board’s meeting was
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                                                through group action of essentially                        Regarding the impact of this action on             widely publicized throughout the
                                                small entities acting on their own                      affected entities, increasing the inedible            almond industry and all interested
                                                behalf.                                                 kernel tolerance reduces disposition                  persons were invited to attend the
                                                   There are approximately 6,800                        obligation on handlers and provides                   meeting and participate in Board
                                                almond growers in the production area                   handlers with more flexibility and                    deliberations. Like all Board meetings,
                                                and approximately 100 handlers subject                  control over the poor quality product.                the April 12, 2016, meeting was a public
                                                to regulation under the marketing order.                This rule is not expected to change                   meeting and all entities, both large and


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                                                                 Federal Register / Vol. 81, No. 159 / Wednesday, August 17, 2016 / Rules and Regulations                                             54721

                                                small, were able to express their views                 PART 981—ALMONDS GROWN IN                                Telephone: (202) 586–7796. Email:
                                                on this issue.                                          CALIFORNIA                                               elizabeth.kohl@hq.doe.gov.
                                                   Also, the Board has a number of                                                                            SUPPLEMENTARY INFORMATION: The U.S.
                                                appointed committees to review certain                  ■ 1. The authority citation for 7 CFR                 Department of Energy (DOE) published
                                                issues and make recommendations to                      part 981 continues to read as follows:                a final rule in the Federal Register on
                                                the Board. The Board’s Almond Quality                       Authority: 7 U.S.C. 601–674.                      July 25, 2016 (‘‘the July 2016 final rule’’)
                                                and Food Safety Committee met on                        ■ 2. Section 981.442(a)(4)(i) is revised to           amending test procedures for ceiling
                                                April 5, 2016, and discussed this issue                 read as follows:                                      fans. 81 FR 48619. This correction
                                                in detail. That meeting was also a public                                                                     addresses an amendatory term error in
                                                meeting, and both large and small                       § 981.442    Quality Control.                         that final rule. Specifically, the
                                                entities were able to participate and                     (a) * * *                                           instructions amending appendix U to
                                                express their views. Finally, interested                  (4) Disposition obligation. (i)                     subpart B of part 430—Uniform Test
                                                persons are invited to submit comments                  Beginning August 1, 2016, the weight of               Method for Measuring the Energy
                                                on this interim rule, including the                     inedible kernels in excess of 2 percent               Consumption of Ceiling Fans, stated
                                                regulatory and informational impacts of                 of kernel weight reported to the Board                that appendix U is ‘‘added’’. Since 10
                                                this action on small businesses.                        of any variety received by a handler                  CFR part 430 already includes appendix
                                                   A small business guide on complying                  shall constitute that handler’s                       U, the instruction amending appendix U
                                                with fruit, vegetable, and specialty crop               disposition obligation. For any almonds               should use the amendatory term
                                                marketing agreements and orders may                     sold inshell, the weight may be reported              ‘‘revised.’’ This document corrects
                                                be viewed at: http://www.ams.usda.gov/                  to the Board and the disposition                      appendix U instructions to use the
                                                rules-regulations/moa/small-businesses.                 obligation for that variety reduced                   correct amendatory term ‘‘revised.’’
                                                Any questions about the compliance                      proportionately.
                                                guide should be sent to Richard Lower                                                                         Correction
                                                                                                        *     *     *     *     *
                                                at the previously mentioned address in                                                                        ■ In FR Doc. 2016–17139, appearing on
                                                                                                          Dated: August 12, 2016.
                                                the FOR FURTHER INFORMATION CONTACT                                                                           page 48640, in the issue of Monday, July
                                                section.                                                Elanor Starmer,
                                                                                                                                                              25, 2016, amendatory instruction 7. is
                                                   This rule invites comments on a                      Administrator, Agricultural Marketing
                                                                                                        Service.                                              corrected to read as follows:
                                                change to the quality control
                                                requirements currently prescribed under                 [FR Doc. 2016–19625 Filed 8–16–16; 8:45 am]           Appendix U to Subpart B of Part 430
                                                the order. Any comments timely                          BILLING CODE 3410–02–P                                [Corrected]
                                                received will be considered prior to                                                                          ■ 7. Appendix U to subpart B of part
                                                finalization of this rule.                                                                                    430 is revised to read as follows:
                                                   After consideration of all relevant                  DEPARTMENT OF ENERGY                                  *     *     *    *     *
                                                material presented, including the
                                                Board’s recommendation, and other                       10 CFR Part 430                                         Issued in Washington, DC on August 11,
                                                                                                                                                              2016.
                                                information, it is found that this interim              [Docket No. EERE–2013–BT–TP–0050]
                                                rule, as hereinafter set forth, will tend                                                                     Kathleen B. Hogan,
                                                                                                        RIN 1904–AD10                                         Deputy Assistant Secretary for Energy
                                                to effectuate the declared policy of the
                                                Act.                                                                                                          Efficiency, Energy Efficiency and Renewable
                                                                                                        Energy Conservation Program: Test                     Energy.
                                                   Pursuant to 5 U.S.C. 553, it is also                 Procedures for Ceiling Fans;                          [FR Doc. 2016–19621 Filed 8–16–16; 8:45 am]
                                                found and determined upon good cause                    Correction
                                                that it is impracticable, unnecessary,                                                                        BILLING CODE 6450–01–P

                                                and contrary to the public interest to                  AGENCY:  Office of Energy Efficiency and
                                                give preliminary notice prior to putting                Renewable Energy, Department of
                                                this rule into effect and that good cause               Energy.                                               DEPARTMENT OF COMMERCE
                                                exists for not postponing the effective                 ACTION: Final rule; technical correction.
                                                date of this rule until 30 days after                                                                         Bureau of Industry and Security
                                                publication in the Federal Register                     SUMMARY:   On July 25, 2016, the U.S.
                                                because: (1) This rule relaxes the current              Department of Energy published a final                15 CFR Part 758
                                                rules and regulations; (2) this rule                    rule amending test procedures for                     [Docket No. 150107020–6464–02]
                                                should be in place in time for the                      ceiling fans. 81 FR 48619. This
                                                beginning of the crop year on August 1;                 correction addresses an amendatory                    RIN 0694–AG47
                                                (3) the Board unanimously                               term error in that final rule.
                                                recommended these changes at a public                   DATES: The correction is effective
                                                                                                                                                              Revisions to the Export Administration
                                                meeting and interested parties had an                   August 24, 2016.                                      Regulations (EAR): Harmonization of
                                                opportunity to provide input; and (4)                                                                         the Destination Control Statements
                                                                                                        FOR FURTHER INFORMATION CONTACT:
                                                this rule provides a 60-day comment                     Ms. Lucy deButts, U.S. Department of                  AGENCY:  Bureau of Industry and
                                                period and any comments timely                            Energy, Office of Energy Efficiency                 Security, Department of Commerce.
                                                received will be considered prior to                      and Renewable Energy, Building                      ACTION: Final rule.
                                                finalization of this rule.                                Technologies Office, EE–2J, 1000
                                                List of Subjects in 7 CFR Part 981                        Independence Avenue SW.,                            SUMMARY:   This final rule implements
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                                                                                                          Washington, DC, 20585–0121.                         changes that were proposed on May 22,
                                                  Almonds, Marketing agreements,                          Telephone: (202) 287–1604. Email:                   2015, in a proposed rule entitled
                                                Nuts, Reporting and recordkeeping                         ceiling_fans@ee.doe.gov.                            Revisions to the Export Administration
                                                requirements.                                           Ms. Elizabeth Kohl, U.S. Department of                Regulations (EAR): Harmonization of
                                                  For the reasons set forth in the                        Energy, Office of the General Counsel,              the Destination Control Statements.
                                                preamble, 7 CFR part 981 is amended as                    GC–33, 1000 Independence Avenue                     This final rule revises the destination
                                                follows:                                                  SW., Washington, DC, 20585–0121.                    control statement in § 758.6 of the


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Document Created: 2018-02-09 11:34:54
Document Modified: 2018-02-09 11:34:54
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionInterim rule with request for comments.
DatesEffective August 18, 2016; comments received by October 17, 2016 will be considered prior to issuance of a final rule.
ContactAndrea Ricci, Marketing Specialist or Jeffrey Smutny, 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 Citation81 FR 54719 
CFR AssociatedAlmonds; Marketing Agreements; Nuts and Reporting and Recordkeeping Requirements

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