81_FR_59593 81 FR 59425 - Softwood Lumber Research, Promotion, Consumer Education and Industry Information Order; Revision of Time Frame for Continuance Referenda

81 FR 59425 - Softwood Lumber Research, Promotion, Consumer Education and Industry Information Order; Revision of Time Frame for Continuance Referenda

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 81, Issue 168 (August 30, 2016)

Page Range59425-59427
FR Document2016-20805

This interim rule invites comments on revising the time frame for continuance referenda under the Softwood Lumber Research, Promotion, Consumer Education and Industry Information Order (Order). The Order is administered by the Softwood Lumber Board (Board) with oversight by the U.S. Department of Agriculture (USDA). The Order requires USDA to conduct a continuance referendum five years after the program took effect (2011). This action revises this time frame from five years (2016) to no later than seven years (2018). This will allow time for USDA to complete a separate rulemaking action on the Order's exemption threshold. That rulemaking is being initiated in response to a federal district court decision in Resolute Forest Products Inc., v. USDA, et al. (Resolute). Once USDA completes that action, a continuance referendum will be conducted. The results of the exemption threshold rulemaking could impact who votes in the referendum and who pays assessments under the Order.

Federal Register, Volume 81 Issue 168 (Tuesday, August 30, 2016)
[Federal Register Volume 81, Number 168 (Tuesday, August 30, 2016)]
[Rules and Regulations]
[Pages 59425-59427]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-20805]



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

The Code of Federal Regulations is sold by the Superintendent of Documents. 
Prices of new books are listed in the first FEDERAL REGISTER issue of each 
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Federal Register / Vol. 81, No. 168 / Tuesday, August 30, 2016 / 
Rules and Regulations

[[Page 59425]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1217

[Document Number AMS-SC-16-0054]


Softwood Lumber Research, Promotion, Consumer Education and 
Industry Information Order; Revision of Time Frame for Continuance 
Referenda

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim rule.

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

SUMMARY: This interim rule invites comments on revising the time frame 
for continuance referenda under the Softwood Lumber Research, 
Promotion, Consumer Education and Industry Information Order (Order). 
The Order is administered by the Softwood Lumber Board (Board) with 
oversight by the U.S. Department of Agriculture (USDA). The Order 
requires USDA to conduct a continuance referendum five years after the 
program took effect (2011). This action revises this time frame from 
five years (2016) to no later than seven years (2018). This will allow 
time for USDA to complete a separate rulemaking action on the Order's 
exemption threshold. That rulemaking is being initiated in response to 
a federal district court decision in Resolute Forest Products Inc., v. 
USDA, et al. (Resolute). Once USDA completes that action, a continuance 
referendum will be conducted. The results of the exemption threshold 
rulemaking could impact who votes in the referendum and who pays 
assessments under the Order.

DATES: Effective August 31, 2016. Comments received by October 31, 2016 
will be considered prior to issuance of a final rule.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this interim rule. Comments may be submitted on the Internet 
at: http://www.regulations.gov or to the Promotion and Economics 
Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue 
SW., Room 1406-S, Stop 0244, Washington, DC 20250-0244; facsimile: 
(202) 205-2800. 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, including name and address, if 
provided, in the above office during regular business hours or it can 
be viewed at http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Maureen T. Pello, Marketing 
Specialist, Promotion and Economics Division, Specialty Crops Program, 
AMS, USDA, P.O. Box 831, Beavercreek, Oregon 97004; telephone: (503) 
632-8848; facsimile (503) 632-8852; or electronic mail: 
[email protected].

SUPPLEMENTARY INFORMATION: This interim rule is issued under the Order 
(7 CFR part 1217). The Order is authorized under the Commodity 
Promotion, Research and Information Act of 1996 (1996 Act) (7 U.S.C. 
7411-7425).

Executive Order 12866 and Executive Order 13563

    Executive Orders 12866 and 13563 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, reducing costs, harmonizing rules and promoting flexibility. 
This action has been designated as a ``non-significant regulatory 
action'' under section 3(f) of Executive Order 12866. Accordingly, the 
Office of Management and Budget (OMB) has waived the review process.

Executive Order 13175

    This action has been reviewed in accordance with the requirements 
of Executive Order 13175, Consultation and Coordination with Indian 
Tribal Governments. The review reveals that this regulation will not 
have substantial and direct effects on Tribal governments and will not 
have significant Tribal implications.

Executive Order 12988

    This interim rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. It is not intended to have retroactive effect. 
Section 524 of the 1996 Act (7 U.S.C. 7423) provides that it shall not 
affect or preempt any other Federal or State law authorizing promotion 
or research relating to an agricultural commodity.
    Under section 519 of the 1996 Act (7 U.S.C. 7418), a person subject 
to an order may file a written petition with USDA stating that an 
order, any provision of an order, or any obligation imposed in 
connection with an order, is not established in accordance with the 
law, and request a modification of an order or an exemption from an 
order. Any petition filed challenging an order, any provision of an 
order, or any obligation imposed in connection with an order, shall be 
filed within two years after the effective date of an order, provision, 
or obligation subject to challenge in the petition. The petitioner will 
have the opportunity for a hearing on the petition. Thereafter, USDA 
will issue a ruling on the petition. The 1996 Act provides that the 
district court of the United States for any district in which the 
petitioner resides or conducts business shall have the jurisdiction to 
review a final ruling on the petition, if the petitioner files a 
complaint for that purpose not later than 20 days after the date of the 
entry of USDA's final ruling.

Background

    This interim rule invites comments on revising the time frame for 
continuance referenda under the Order. The Order is administered by the 
Board with oversight by USDA. The Order requires USDA to conduct a 
continuance referendum five years after the program took effect (2011). 
This action revises this time frame from five years (2016) to no later 
than seven years (2018). This will allow time for USDA to complete a 
separate rulemaking action on the Order's exemption threshold. That 
rulemaking is being initiated in response to a federal district court 
decision in Resolute. Once USDA completes that action, a referendum 
will be conducted. The results of that rulemaking could impact who 
votes in the referendum and who pays assessments under the program.

[[Page 59426]]

    The softwood lumber program was promulgated in 2011. Assessment 
collection began in January 2012. Under the Order, assessments are 
collected from U.S. manufacturers (domestic) and importers and used for 
projects designed to increase the demand for softwood lumber within the 
United States. Softwood lumber is used in products like flooring, 
siding and framing. Entities that domestically ship or import less than 
15 million board feet annually are exempt from paying assessments.

Authorities and Action

    Section 518 of the 1996 Act (7 U.S.C. 7417) authorizes continuance 
referenda. Paragraph (b) of that section requires USDA to conduct a 
referendum not later than seven years after assessments first begin 
under an order. Under Sec.  1217.81(b)(2) of the softwood lumber Order, 
USDA must conduct a referendum five years after the program took effect 
to determine whether persons subject to assessment favor continuance of 
the Order, and then every five years thereafter. A referendum was 
initially scheduled for August 2016.
    USDA is conducting an analysis on the 15 million board foot 
exemption threshold under the Order, as specified in paragraphs (a) and 
(b) of section 1217.53. USDA is analyzing this threshold based on 
recent data and will publish the results of its analysis for public 
comment in a future rulemaking action. Once this rulemaking is 
completed, USDA will conduct a referendum. The results of that 
rulemaking could impact who votes in the referendum and who pays 
assessments under the program.
    USDA will be initiating the future rulemaking action on the Order's 
exemption threshold in response to a May 2016 federal district court 
decision in Resolute. All program obligations, including the collection 
of assessments and filing of reports, remain in effect.
    Therefore, USDA has postponed the August 2016 referendum and is 
revising paragraph (2) in section 1217.81(b) to specify that a 
referendum must be conducted no later than seven years (2018) after the 
program took effect. This will allow time for USDA to complete the 
rulemaking action on the exemption threshold under the program and 
conduct a referendum. Section 1217.81(b)(2) is revised accordingly. 
Authority for USDA to amend the Order is provided in section 1217.87 of 
the Order and in section 514(d) of the 1996 Act (7 U.S.C. 7413).

Initial Regulatory Flexibility Act Analysis

    In accordance with the Regulatory Flexibility Act (RFA) (5 U.S.C. 
601-612), AMS is required to examine the impact of the interim rule on 
small entities. Accordingly, AMS has considered the economic impact of 
this action on such entities.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions so that small businesses will not be 
disproportionately burdened. The Small Business Administration defines, 
in 13 CFR part 121, small agricultural producers as those having annual 
receipts of no more than $750,000 and small agricultural service firms 
(domestic manufacturers and importers) as those having annual receipts 
of no more than $7.5 million.
    Based on 2015 Board data, it is estimated that there are about 375 
domestic manufacturers of softwood lumber in the United States. Using 
an average price of $330 per thousand board feet,\1\ a domestic 
manufacturer who ships less than about 23 million board feet per year 
would be considered a small entity. It is estimated that fewer than 240 
domestic manufacturers, or 64 percent, ship under 23 million board feet 
annually.
---------------------------------------------------------------------------

    \1\ Price data was obtained from Random Lengths Publications, 
Inc., and is a framing composite price that is designed as a broad 
measure of price movement in the lumber market. Random Lengths 
describes itself as a firm that ``provides the forest products 
industry with unbiased, consistent and timely reports of market 
activity and prices, related trends, issues, and analyses.'' 
(www.randomlengths.com).
---------------------------------------------------------------------------

    Likewise, based on 2015 U.S. Customs and Border Protection 
(Customs) data, it is estimated there are 890 importers of softwood 
lumber. About 790 importers, or 89 percent, each imported less than 
$7.5 million worth of softwood lumber annually. Thus, for purposes of 
the RFA, the majority of domestic manufacturers and importers of 
softwood lumber would be considered small entities.
    Regarding value of the commodity, with domestic consumption 
estimated at 43.9 billion board feet in 2015,\2\ and using a price of 
$330 per thousand board feet, the annual domestic value for softwood 
lumber is about $14.5 billion. According to 2015 Customs data, the 
annual value for softwood lumber imports is about $5.0 billion.
---------------------------------------------------------------------------

    \2\ Consumption data is from Forest Economic Advisors (FEA). FEA 
describes itself as a firm that ``brings modern econometric 
techniques to the forest products industry.'' (www.getfea.com).
---------------------------------------------------------------------------

    This interim rule invites comments on revising the time frame for 
continuance referenda under the Order. The Order is administered by the 
Board with oversight by USDA. Section 1217.81(b)(2) of the Order 
requires USDA to conduct a continuance referendum five years after the 
program took effect (2011). This action revises this section to change 
the time frame from five years (2016) to no later than seven years 
(2018). This will allow time for USDA to complete a separate rulemaking 
action on the Order's exemption threshold. That rulemaking is being 
initiated in response to a federal district court decision in Resolute. 
Once USDA completes that action, a referendum will be conducted. The 
results of that rulemaking could impact who votes in the referendum and 
who pays assessments under the program. Authority for this action is 
provided in section 1217.87 of the Order and in section 514(d) of the 
1996 Act (7 U.S.C. 7413).
    Regarding the economic impact of this interim rule, this change is 
administrative in nature. Postponing the 2016 referendum will allow 
time for USDA to complete a separate rulemaking action on the Order's 
exemption threshold and conduct a referendum as described above. The 
results of that rulemaking could impact who votes in the referendum and 
who pays assessments under the program.
    Regarding alternatives, conducting the referendum as initially 
planned in 2016 would cause confusion in the industry. USDA is 
currently conducting an analysis on the exemption threshold under the 
Order and will publish the results in a separate rulemaking action. 
That action is being initiated in response to Resolute. Once USDA 
completes that action, a referendum will be conducted. The results of 
that rulemaking action could impact who votes in the referendum.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the information collection and recordkeeping requirements 
that are imposed by the Order have been approved previously under OMB 
control number 0581-0093. This interim rule imposes no additional 
reporting and recordkeeping burden on domestic manufacturer and 
importers of softwood lumber.
    As with all Federal promotion programs, reports and forms are 
periodically reviewed to reduce information requirements and 
duplication by industry and public sector agencies. Finally, USDA has 
not identified any relevant Federal rules that duplicate, overlap, or 
conflict with this interim rule.
    AMS is committed to complying with the E-Government Act, to promote 
the

[[Page 59427]]

use of the Internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.
    Regarding outreach efforts, USDA announced at the Board's meeting 
on May 25, 2016, that the referendum scheduled for August 2016 would be 
postponed to a future to-be-determined date. USDA also announced at the 
meeting that it would publish a notice in the Federal Register on the 
postponement. After the meeting, the Board issued a newsflash to 
industry members advising them accordingly.
    A 60-day comment period is provided to allow interested persons to 
respond to this interim rule. All written comments received in response 
to this rule by the date specified will be considered prior to 
finalizing this action.
    After consideration of all relevant material presented, and other 
information, it is found that this interim rule, as hereinafter set 
forth, will tend to effectuate the declared purposes of the 1996 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 interim rule extends the time frame for USDA to 
conduct a referendum under the Order from five years (2016) after the 
program took effect to no later than seven years (2018); (2) postponing 
the 2016 referendum will give USDA time to complete a separate 
rulemaking action on the Order's exemption threshold that is being 
initiated in response to a May 2016 federal district court decision in 
Resolute; (3) USDA announced at the Board's meeting on May 25, 2016, 
that the 2016 referendum would be postponed, and the Board subsequently 
issued a newsflash to industry members advising them of the postponed 
referendum; and (4) this rule provides a 60-day comment period and any 
comments received will be considered prior to finalization of this 
rule.

List of Subjects in 7 CFR Part 1217

    Administrative practice and procedure, Advertising, Consumer 
information, Marketing agreements, Promotion, Reporting and 
recordkeeping requirements, Softwood lumber.

    For the reasons set forth in the preamble, 7 CFR part 1217 is 
amended as follows:

PART 1217--SOFTWOOD LUMBER RESEARCH, PROMOTION, CONSUMER EDUCATION 
AND INDUSTRY INFORMATION ORDER

0
 1. The authority citation for 7 CFR part 1217 continues to read as 
follows:

     Authority:  7 U.S.C. 7411-7425; 7 U.S.C. 7401.


0
 2. In Sec.  1217.81, revise paragraph (b)(2) to read as follows:


Sec.  1217.81  Referenda.

* * * * *
    (b) * * *
    (2) No later than seven years after this Order becomes effective 
and every five years thereafter, to determine whether softwood lumber 
manufacturers for the U.S. market favor the continuation of the Order. 
The Order shall continue if it is favored by a majority of domestic 
manufacturers and importers voting in the referendum who also represent 
a majority of the volume of softwood lumber represented in the 
referendum who, during a representative period determined by the 
Secretary, have been engaged in the domestic manufacturing or 
importation of softwood lumber;
* * * * *

    Dated: August 25, 2016.
Elanor Starmer,
Administrator.
[FR Doc. 2016-20805 Filed 8-29-16; 8:45 am]
 BILLING CODE 3410-02-P



                                                                                                                                                                                               59425

                                                Rules and Regulations                                                                                         Federal Register
                                                                                                                                                              Vol. 81, No. 168

                                                                                                                                                              Tuesday, August 30, 2016



                                                This section of the FEDERAL REGISTER                    may be submitted on the Internet at:                  and will not have significant Tribal
                                                contains regulatory documents having general            http://www.regulations.gov or to the                  implications.
                                                applicability and legal effect, most of which           Promotion and Economics Division,
                                                are keyed to and codified in the Code of                                                                      Executive Order 12988
                                                                                                        Specialty Crops Program, AMS, USDA,
                                                Federal Regulations, which is published under           1400 Independence Avenue SW., Room                       This interim rule has been reviewed
                                                50 titles pursuant to 44 U.S.C. 1510.                                                                         under Executive Order 12988, Civil
                                                                                                        1406–S, Stop 0244, Washington, DC
                                                The Code of Federal Regulations is sold by              20250–0244; facsimile: (202) 205–2800.                Justice Reform. It is not intended to
                                                the Superintendent of Documents. Prices of              All comments should reference the                     have retroactive effect. Section 524 of
                                                new books are listed in the first FEDERAL               document number and the date and                      the 1996 Act (7 U.S.C. 7423) provides
                                                REGISTER issue of each week.                            page number of this issue of the Federal              that it shall not affect or preempt any
                                                                                                        Register and will be made available for               other Federal or State law authorizing
                                                                                                        public inspection, including name and                 promotion or research relating to an
                                                DEPARTMENT OF AGRICULTURE                               address, if provided, in the above office             agricultural commodity.
                                                                                                        during regular business hours or it can                  Under section 519 of the 1996 Act (7
                                                Agricultural Marketing Service                          be viewed at http://                                  U.S.C. 7418), a person subject to an
                                                                                                        www.regulations.gov.                                  order may file a written petition with
                                                7 CFR Part 1217                                                                                               USDA stating that an order, any
                                                                                                        FOR FURTHER INFORMATION CONTACT:                      provision of an order, or any obligation
                                                [Document Number AMS–SC–16–0054]                        Maureen T. Pello, Marketing Specialist,               imposed in connection with an order, is
                                                                                                        Promotion and Economics Division,                     not established in accordance with the
                                                Softwood Lumber Research,
                                                                                                        Specialty Crops Program, AMS, USDA,                   law, and request a modification of an
                                                Promotion, Consumer Education and
                                                                                                        P.O. Box 831, Beavercreek, Oregon                     order or an exemption from an order.
                                                Industry Information Order; Revision
                                                                                                        97004; telephone: (503) 632–8848;                     Any petition filed challenging an order,
                                                of Time Frame for Continuance
                                                                                                        facsimile (503) 632–8852; or electronic               any provision of an order, or any
                                                Referenda
                                                                                                        mail: Maureen.Pello@ams.usda.gov.                     obligation imposed in connection with
                                                AGENCY:  Agricultural Marketing Service,                SUPPLEMENTARY INFORMATION: This                       an order, shall be filed within two years
                                                USDA.                                                   interim rule is issued under the Order                after the effective date of an order,
                                                ACTION: Interim rule.                                   (7 CFR part 1217). The Order is                       provision, or obligation subject to
                                                                                                        authorized under the Commodity                        challenge in the petition. The petitioner
                                                SUMMARY:   This interim rule invites                    Promotion, Research and Information                   will have the opportunity for a hearing
                                                comments on revising the time frame for                 Act of 1996 (1996 Act) (7 U.S.C. 7411–                on the petition. Thereafter, USDA will
                                                continuance referenda under the                         7425).                                                issue a ruling on the petition. The 1996
                                                Softwood Lumber Research, Promotion,
                                                                                                        Executive Order 12866 and Executive                   Act provides that the district court of
                                                Consumer Education and Industry
                                                                                                                                                              the United States for any district in
                                                Information Order (Order). The Order is                 Order 13563
                                                                                                                                                              which the petitioner resides or conducts
                                                administered by the Softwood Lumber                        Executive Orders 12866 and 13563                   business shall have the jurisdiction to
                                                Board (Board) with oversight by the U.S.                direct agencies to assess all costs and               review a final ruling on the petition, if
                                                Department of Agriculture (USDA). The                   benefits of available regulatory                      the petitioner files a complaint for that
                                                Order requires USDA to conduct a                        alternatives and, if regulation is                    purpose not later than 20 days after the
                                                continuance referendum five years after                 necessary, to select regulatory                       date of the entry of USDA’s final ruling.
                                                the program took effect (2011). This                    approaches that maximize net benefits
                                                action revises this time frame from five                (including potential economic,                        Background
                                                years (2016) to no later than seven years               environmental, public health and safety                  This interim rule invites comments on
                                                (2018). This will allow time for USDA                   effects, distributive impacts and equity).            revising the time frame for continuance
                                                to complete a separate rulemaking                       Executive Order 13563 emphasizes the                  referenda under the Order. The Order is
                                                action on the Order’s exemption                         importance of quantifying both costs                  administered by the Board with
                                                threshold. That rulemaking is being                     and benefits, reducing costs,                         oversight by USDA. The Order requires
                                                initiated in response to a federal district             harmonizing rules and promoting                       USDA to conduct a continuance
                                                court decision in Resolute Forest                       flexibility. This action has been                     referendum five years after the program
                                                Products Inc., v. USDA, et al. (Resolute).              designated as a ‘‘non-significant                     took effect (2011). This action revises
                                                Once USDA completes that action, a                      regulatory action’’ under section 3(f) of             this time frame from five years (2016) to
                                                continuance referendum will be                          Executive Order 12866. Accordingly,                   no later than seven years (2018). This
                                                conducted. The results of the exemption                 the Office of Management and Budget                   will allow time for USDA to complete
                                                threshold rulemaking could impact who                   (OMB) has waived the review process.                  a separate rulemaking action on the
                                                votes in the referendum and who pays                                                                          Order’s exemption threshold. That
                                                assessments under the Order.                            Executive Order 13175                                 rulemaking is being initiated in
mstockstill on DSK3G9T082PROD with RULES




                                                DATES: Effective August 31, 2016.                         This action has been reviewed in                    response to a federal district court
                                                Comments received by October 31, 2016                   accordance with the requirements of                   decision in Resolute. Once USDA
                                                will be considered prior to issuance of                 Executive Order 13175, Consultation                   completes that action, a referendum will
                                                a final rule.                                           and Coordination with Indian Tribal                   be conducted. The results of that
                                                ADDRESSES: Interested persons are                       Governments. The review reveals that                  rulemaking could impact who votes in
                                                invited to submit written comments                      this regulation will not have substantial             the referendum and who pays
                                                concerning this interim rule. Comments                  and direct effects on Tribal governments              assessments under the program.


                                           VerDate Sep<11>2014   16:58 Aug 29, 2016   Jkt 238001   PO 00000   Frm 00001   Fmt 4700   Sfmt 4700   E:\FR\FM\30AUR1.SGM   30AUR1


                                                59426             Federal Register / Vol. 81, No. 168 / Tuesday, August 30, 2016 / Rules and Regulations

                                                   The softwood lumber program was                      Initial Regulatory Flexibility Act                      administered by the Board with
                                                promulgated in 2011. Assessment                         Analysis                                                oversight by USDA. Section
                                                collection began in January 2012. Under                    In accordance with the Regulatory                    1217.81(b)(2) of the Order requires
                                                the Order, assessments are collected                    Flexibility Act (RFA) (5 U.S.C. 601–                    USDA to conduct a continuance
                                                from U.S. manufacturers (domestic) and                  612), AMS is required to examine the                    referendum five years after the program
                                                importers and used for projects                         impact of the interim rule on small                     took effect (2011). This action revises
                                                designed to increase the demand for                     entities. Accordingly, AMS has                          this section to change the time frame
                                                softwood lumber within the United                       considered the economic impact of this                  from five years (2016) to no later than
                                                States. Softwood lumber is used in                      action on such entities.                                seven years (2018). This will allow time
                                                products like flooring, siding and                         The purpose of the RFA is to fit                     for USDA to complete a separate
                                                framing. Entities that domestically ship                regulatory actions to the scale of                      rulemaking action on the Order’s
                                                or import less than 15 million board feet               businesses subject to such actions so                   exemption threshold. That rulemaking
                                                annually are exempt from paying                         that small businesses will not be                       is being initiated in response to a federal
                                                assessments.                                            disproportionately burdened. The Small                  district court decision in Resolute. Once
                                                                                                        Business Administration defines, in 13                  USDA completes that action, a
                                                Authorities and Action                                                                                          referendum will be conducted. The
                                                                                                        CFR part 121, small agricultural
                                                   Section 518 of the 1996 Act (7 U.S.C.                producers as those having annual                        results of that rulemaking could impact
                                                7417) authorizes continuance referenda.                 receipts of no more than $750,000 and                   who votes in the referendum and who
                                                Paragraph (b) of that section requires                  small agricultural service firms                        pays assessments under the program.
                                                USDA to conduct a referendum not later                  (domestic manufacturers and importers)                  Authority for this action is provided in
                                                than seven years after assessments first                as those having annual receipts of no                   section 1217.87 of the Order and in
                                                begin under an order. Under                             more than $7.5 million.                                 section 514(d) of the 1996 Act (7 U.S.C.
                                                                                                           Based on 2015 Board data, it is                      7413).
                                                § 1217.81(b)(2) of the softwood lumber
                                                                                                        estimated that there are about 375                         Regarding the economic impact of this
                                                Order, USDA must conduct a
                                                                                                        domestic manufacturers of softwood                      interim rule, this change is
                                                referendum five years after the program                                                                         administrative in nature. Postponing the
                                                took effect to determine whether                        lumber in the United States. Using an
                                                                                                        average price of $330 per thousand                      2016 referendum will allow time for
                                                persons subject to assessment favor                                                                             USDA to complete a separate
                                                continuance of the Order, and then                      board feet,1 a domestic manufacturer
                                                                                                        who ships less than about 23 million                    rulemaking action on the Order’s
                                                every five years thereafter. A                                                                                  exemption threshold and conduct a
                                                referendum was initially scheduled for                  board feet per year would be considered
                                                                                                        a small entity. It is estimated that fewer              referendum as described above. The
                                                August 2016.                                                                                                    results of that rulemaking could impact
                                                                                                        than 240 domestic manufacturers, or 64
                                                   USDA is conducting an analysis on                    percent, ship under 23 million board                    who votes in the referendum and who
                                                the 15 million board foot exemption                     feet annually.                                          pays assessments under the program.
                                                threshold under the Order, as specified                    Likewise, based on 2015 U.S. Customs                    Regarding alternatives, conducting the
                                                in paragraphs (a) and (b) of section                    and Border Protection (Customs) data, it                referendum as initially planned in 2016
                                                1217.53. USDA is analyzing this                         is estimated there are 890 importers of                 would cause confusion in the industry.
                                                threshold based on recent data and will                 softwood lumber. About 790 importers,                   USDA is currently conducting an
                                                publish the results of its analysis for                 or 89 percent, each imported less than                  analysis on the exemption threshold
                                                public comment in a future rulemaking                   $7.5 million worth of softwood lumber                   under the Order and will publish the
                                                action. Once this rulemaking is                         annually. Thus, for purposes of the                     results in a separate rulemaking action.
                                                completed, USDA will conduct a                          RFA, the majority of domestic                           That action is being initiated in
                                                referendum. The results of that                         manufacturers and importers of                          response to Resolute. Once USDA
                                                rulemaking could impact who votes in                    softwood lumber would be considered                     completes that action, a referendum will
                                                the referendum and who pays                             small entities.                                         be conducted. The results of that
                                                assessments under the program.                             Regarding value of the commodity,                    rulemaking action could impact who
                                                   USDA will be initiating the future                   with domestic consumption estimated                     votes in the referendum.
                                                                                                        at 43.9 billion board feet in 2015,2 and                   In accordance with the Paperwork
                                                rulemaking action on the Order’s
                                                                                                        using a price of $330 per thousand                      Reduction Act of 1995 (44 U.S.C.
                                                exemption threshold in response to a
                                                                                                        board feet, the annual domestic value                   Chapter 35), the information collection
                                                May 2016 federal district court decision
                                                                                                        for softwood lumber is about $14.5                      and recordkeeping requirements that are
                                                in Resolute. All program obligations,
                                                                                                        billion. According to 2015 Customs                      imposed by the Order have been
                                                including the collection of assessments
                                                                                                        data, the annual value for softwood                     approved previously under OMB
                                                and filing of reports, remain in effect.
                                                                                                        lumber imports is about $5.0 billion.                   control number 0581–0093. This interim
                                                   Therefore, USDA has postponed the                       This interim rule invites comments on                rule imposes no additional reporting
                                                August 2016 referendum and is revising                  revising the time frame for continuance                 and recordkeeping burden on domestic
                                                paragraph (2) in section 1217.81(b) to                  referenda under the Order. The Order is                 manufacturer and importers of softwood
                                                specify that a referendum must be                                                                               lumber.
                                                conducted no later than seven years                        1 Price data was obtained from Random Lengths           As with all Federal promotion
                                                (2018) after the program took effect.                   Publications, Inc., and is a framing composite price    programs, reports and forms are
                                                This will allow time for USDA to                        that is designed as a broad measure of price            periodically reviewed to reduce
                                                complete the rulemaking action on the                   movement in the lumber market. Random Lengths
                                                                                                                                                                information requirements and
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                                                                                                        describes itself as a firm that ‘‘provides the forest
                                                exemption threshold under the program                   products industry with unbiased, consistent and         duplication by industry and public
                                                and conduct a referendum. Section                       timely reports of market activity and prices, related   sector agencies. Finally, USDA has not
                                                1217.81(b)(2) is revised accordingly.                   trends, issues, and analyses.’’                         identified any relevant Federal rules
                                                Authority for USDA to amend the Order                   (www.randomlengths.com).
                                                                                                           2 Consumption data is from Forest Economic
                                                                                                                                                                that duplicate, overlap, or conflict with
                                                is provided in section 1217.87 of the                   Advisors (FEA). FEA describes itself as a firm that     this interim rule.
                                                Order and in section 514(d) of the 1996                 ‘‘brings modern econometric techniques to the              AMS is committed to complying with
                                                Act (7 U.S.C. 7413).                                    forest products industry.’’ (www.getfea.com).           the E-Government Act, to promote the


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                                                                  Federal Register / Vol. 81, No. 168 / Tuesday, August 30, 2016 / Rules and Regulations                                        59427

                                                use of the Internet and other                             For the reasons set forth in the                    the establishment or permit number on
                                                information technologies to provide                     preamble, 7 CFR part 1217 is amended                  labeling and require such labeling to
                                                increased opportunities for citizen                     as follows:                                           show the product code number; change
                                                access to Government information and                                                                          the storage temperature recommended
                                                services, and for other purposes.                       PART 1217—SOFTWOOD LUMBER                             in labeling for veterinary biologics;
                                                                                                        RESEARCH, PROMOTION,                                  require vaccination and revaccination
                                                   Regarding outreach efforts, USDA
                                                                                                        CONSUMER EDUCATION AND                                recommendations in labeling to be
                                                announced at the Board’s meeting on
                                                                                                        INDUSTRY INFORMATION ORDER                            consistent with licensing data; require
                                                May 25, 2016, that the referendum
                                                scheduled for August 2016 would be                                                                            labeling information placed on carton
                                                                                                        ■ 1. The authority citation for 7 CFR
                                                postponed to a future to-be-determined                                                                        tray covers to appear on the outside face
                                                                                                        part 1217 continues to read as follows:
                                                date. USDA also announced at the                                                                              of the tray cover; remove the restriction
                                                                                                          Authority: 7 U.S.C. 7411–7425; 7 U.S.C.             requiring multiple-dose final containers
                                                meeting that it would publish a notice
                                                                                                        7401.                                                 of veterinary biologics to be packaged in
                                                in the Federal Register on the
                                                postponement. After the meeting, the                    ■ 2. In § 1217.81, revise paragraph (b)(2)            individual cartons; require labeling for
                                                Board issued a newsflash to industry                    to read as follows:                                   bovine virus diarrhea vaccine
                                                members advising them accordingly.                                                                            containing modified live virus to bear a
                                                                                                        § 1217.81    Referenda.                               statement warning against use in
                                                   A 60-day comment period is provided                  *      *    *     *     *                             pregnant animals; reduce the number of
                                                to allow interested persons to respond                     (b) * * *                                          copies of each finished final container
                                                to this interim rule. All written                          (2) No later than seven years after this           label, carton label, or enclosure required
                                                comments received in response to this                   Order becomes effective and every five                to be submitted for review and approval;
                                                rule by the date specified will be                      years thereafter, to determine whether                require labels for autogenous biologics
                                                considered prior to finalizing this                     softwood lumber manufacturers for the                 to specify the organism(s) and/or
                                                action.                                                 U.S. market favor the continuation of                 antigen(s) they contain; and require
                                                   After consideration of all relevant                  the Order. The Order shall continue if                labeling for conditionally licensed
                                                material presented, and other                           it is favored by a majority of domestic               veterinary biologics to bear a statement
                                                information, it is found that this interim              manufacturers and importers voting in                 concerning efficacy and potency
                                                rule, as hereinafter set forth, will tend               the referendum who also represent a                   requirements. In addition, we are also
                                                to effectuate the declared purposes of                  majority of the volume of softwood                    amending the regulations concerning
                                                the 1996 Act.                                           lumber represented in the referendum                  the number of labels or label sketches
                                                   Pursuant to 5 U.S.C. 553, it is also                 who, during a representative period                   for experimental products required to be
                                                found and determined upon good cause                    determined by the Secretary, have been                submitted for review and approval, and
                                                that it is impracticable, unnecessary,                  engaged in the domestic manufacturing                 the recommended storage temperature
                                                and contrary to the public interest to                  or importation of softwood lumber;                    for veterinary biologics at licensed
                                                give preliminary notice prior to putting                *      *    *     *     *                             establishments. These changes are
                                                this rule into effect and that good cause                 Dated: August 25, 2016.                             necessary in order to update and clarify
                                                exists for not postponing the effective                 Elanor Starmer,                                       labeling requirements and to ensure that
                                                date of this rule until 30 days after                   Administrator.                                        information provided in labeling is
                                                publication in the Federal Register                                                                           accurate with regard to the expected
                                                                                                        [FR Doc. 2016–20805 Filed 8–29–16; 8:45 am]
                                                because: (1) This interim rule extends                                                                        performance of the product.
                                                                                                        BILLING CODE 3410–02–P
                                                the time frame for USDA to conduct a                                                                          DATES: Effective October 31, 2016.
                                                referendum under the Order from five                                                                          FOR FURTHER INFORMATION CONTACT: Dr.
                                                years (2016) after the program took                     DEPARTMENT OF AGRICULTURE                             Donna L. Malloy, Section Leader,
                                                effect to no later than seven years                                                                           Operational Support, Center for
                                                (2018); (2) postponing the 2016                         Animal and Plant Health Inspection                    Veterinary Biologics Policy, Evaluation,
                                                referendum will give USDA time to                       Service                                               and Licensing, VS, APHIS, 4700 River
                                                complete a separate rulemaking action                                                                         Road Unit 148, Riverdale, MD 20737–
                                                on the Order’s exemption threshold that                 9 CFR Parts 101, 103, 112, 113, and 114               1231; (301) 851–3426.
                                                is being initiated in response to a May                                                                       SUPPLEMENTARY INFORMATION:
                                                2016 federal district court decision in                 [Docket No. APHIS–2008–0008]
                                                Resolute; (3) USDA announced at the                     RIN 0579–AD19                                         Background
                                                Board’s meeting on May 25, 2016, that                                                                            Under the Virus-Serum-Toxin Act
                                                the 2016 referendum would be                            Viruses, Serums, Toxins, and                          (the Act, 21 U.S.C. 151–159) and
                                                postponed, and the Board subsequently                   Analogous Products; Packaging and                     regulations issued under the Act, the
                                                issued a newsflash to industry members                  Labeling                                              Animal and Plant Health Inspection
                                                advising them of the postponed                          AGENCY:  Animal and Plant Health                      Service (APHIS) grants licenses or
                                                referendum; and (4) this rule provides a                Inspection Service, USDA.                             permits for biological products which
                                                60-day comment period and any                                                                                 are pure, safe, potent, and efficacious
                                                                                                        ACTION: Final rule.
                                                comments received will be considered                                                                          when used according to label
                                                prior to finalization of this rule.                     SUMMARY:   We are amending the Virus-                 instructions. The regulations in 9 CFR
                                                List of Subjects in 7 CFR Part 1217                     Serum-Toxin Act regulations regarding                 part 112, ‘‘Packaging and Labeling’’
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                                                                                                        the packaging and labeling of veterinary              (referred to below as the regulations),
                                                  Administrative practice and                           biological products to provide for the                prescribe requirements for the
                                                procedure, Advertising, Consumer                        use of an abbreviated true name on                    packaging and labeling of veterinary
                                                information, Marketing agreements,                      small final container labeling for                    biological products including
                                                Promotion, Reporting and                                veterinary biologics; require labeling to             requirements applicable to final
                                                recordkeeping requirements, Softwood                    bear a consumer contact telephone                     container labels, carton labels, and
                                                lumber.                                                 number; change the format used to show                enclosures. The main purpose of the


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Document Created: 2018-02-09 11:42:10
Document Modified: 2018-02-09 11:42:10
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.
DatesEffective August 31, 2016. Comments received by October 31, 2016 will be considered prior to issuance of a final rule.
ContactMaureen T. Pello, Marketing Specialist, Promotion and Economics Division, Specialty Crops Program, AMS, USDA, P.O. Box 831, Beavercreek, Oregon 97004; telephone: (503) 632-8848; facsimile (503) 632-8852; or electronic mail: [email protected]
FR Citation81 FR 59425 
CFR AssociatedAdministrative Practice and Procedure; Advertising; Consumer Information; Marketing Agreements; Promotion; Reporting and Recordkeeping Requirements and Softwood Lumber

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