82_FR_49691 82 FR 49485 - Softwood Lumber Research, Promotion, Consumer Education and Industry Information Order; De Minimis Quantity Exemption Threshold

82 FR 49485 - Softwood Lumber Research, Promotion, Consumer Education and Industry Information Order; De Minimis Quantity Exemption Threshold

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 82, Issue 206 (October 26, 2017)

Page Range49485-49492
FR Document2017-23094

This rule establishes a de minimis quantity exemption threshold under the U.S. Department of Agriculture's (USDA) Agricultural Marketing Service (AMS) regulations regarding a national research and promotion program for softwood lumber. In response to a 2016 federal district court decision, the U.S. Department of Agriculture (USDA) conducted a new analysis to determine a reasonable and appropriate de minimis threshold. Based on that analysis, this rule establishes the de minimis quantity threshold at 15 million board feet (mmbf) and entities manufacturing (and domestically shipping) or importing less than 15 mmbf per year will be exempt from paying assessments under the regulations.

Federal Register, Volume 82 Issue 206 (Thursday, October 26, 2017)
[Federal Register Volume 82, Number 206 (Thursday, October 26, 2017)]
[Rules and Regulations]
[Pages 49485-49492]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-23094]



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Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 

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


Federal Register / Vol. 82, No. 206 / Thursday, October 26, 2017 / 
Rules and Regulations

[[Page 49485]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1217

[Document Number AMS-SC-16-0066]


Softwood Lumber Research, Promotion, Consumer Education and 
Industry Information Order; De Minimis Quantity Exemption Threshold

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: This rule establishes a de minimis quantity exemption 
threshold under the U.S. Department of Agriculture's (USDA) 
Agricultural Marketing Service (AMS) regulations regarding a national 
research and promotion program for softwood lumber. In response to a 
2016 federal district court decision, the U.S. Department of 
Agriculture (USDA) conducted a new analysis to determine a reasonable 
and appropriate de minimis threshold. Based on that analysis, this rule 
establishes the de minimis quantity threshold at 15 million board feet 
(mmbf) and entities manufacturing (and domestically shipping) or 
importing less than 15 mmbf per year will be exempt from paying 
assessments under the regulations.

DATES: Effective Date: November 27, 2017.

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 rule, affecting 7 CFR part 1217, 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 falls within a category of regulatory actions that the 
Office of Management and Budget (OMB) exempted from Executive Order 
12866 review. Additionally, because this rule does not meet the 
definition of a significant regulatory action it does not trigger the 
requirements contained in Executive Order 13771. See OMB's Memorandum 
titled ``Interim Guidance Implementing Section 2 of the Executive Order 
of January 30, 2017, titled `Reducing Regulation and Controlling 
Regulatory Costs' '' (February 2, 2017).

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 rule will not have 
substantial and direct effects on Tribal governments and will not have 
significant Tribal implications.

Executive Order 12988

    This 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 rule establishes a de minimis quantity exemption threshold 
under the Softwood Lumber Research, Promotion, Consumer Education and 
Industry Information Order (Order), codified at 7 CFR part 1217. This 
part is administered by the Softwood Lumber Board (Board) with 
oversight by USDA's Agricultural Marketing Service (AMS). In Resolute 
Forest Products Inc., v. USDA, et al. (Resolute), the court found that, 
on the basis of the estimates and information submitted by the 
government to the court for review, the selection of 15 mmbf as the de 
minimis quantity (to be exempted) under part 1217 was arbitrary and 
capricious and that part 1217 was therefore promulgated unlawfully. The 
court did not vacate (or terminate) part 1217; the court remanded the 
matter to USDA and program requirements remain in effect.
    To address the court's decision, USDA conducted a new analysis to 
determine a reasonable and appropriate de minimis quantity exemption. 
USDA analyzed various thresholds of exemption: 10, 15, 20, 25, and 30 
mmbf. USDA also considered proposing no de minimis exemption. USDA's 
analysis of the data resulted in a determination that a de minimis 
level of 15 mmbf is reasonable and appropriate. The analysis was 
published in a proposed rule on May 30, 2017 (82 FR 24583). This final 
rule establishes the de minimis quantity threshold under part 1217 at 
15 mmbf.

Authority in the 1996 Act

    The 1996 Act authorizes USDA to establish agricultural commodity 
research and promotion orders which may include a combination of 
promotion, research, industry

[[Page 49486]]

information, and consumer information activities funded by mandatory 
assessments. These programs are designed to maintain and expand markets 
and uses for agricultural commodities. As defined under section 
513(1)(D) of the 1996 Act, agricultural commodities include the 
products of forestry, which includes softwood lumber.
    The 1996 Act provides for a number of optional provisions that 
allow the tailoring of orders for different commodities. Section 516 of 
the 1996 Act provides permissive terms for orders. Section 516 states 
that an order may include an exemption of de minimis quantities of an 
agricultural commodity. Further, section 516(g) of the 1996 Act 
provides authority for other action that is consistent with the purpose 
of the statute and necessary to administer a program.

Overview of the Softwood Lumber Program

    The softwood lumber program took effect in August 2011 (76 FR 
46185) and assessment collection began in January 2012. Under part 
1217, assessments are collected from domestic (U.S.) manufacturers and 
importers and are used by the Board for projects that promote market 
growth for softwood lumber products used in single and multi-family 
dwellings as well as commercial construction. The Board is composed of 
19 industry members (domestic manufacturers and importers) who are 
appointed by the Secretary of Agriculture. The purpose of the program 
is to strengthen the position of softwood lumber in the marketplace, 
maintain and expand markets for softwood lumber, and develop new uses 
for softwood lumber within the United States.

Relevant Order Provisions

Domestic Manufacturers

    The term `domestic manufacturer' is defined in Sec.  1217.8 to mean 
any person who is a first handler engaged in the manufacturing, sale 
and shipment of softwood lumber in the United States during a fiscal 
period and who owns, or shares in the ownership and risk of loss of 
manufacturing of softwood lumber or a person who is engaged in the 
business of manufacturing, or causes to be manufactured, sold and 
shipped such softwood lumber in the United States beyond personal use. 
The term does not include persons who re-manufacture softwood lumber 
that has already been subject to assessment. The term `manufacture' is 
defined in Sec.  1217.13 to mean the process of transforming (or 
turning) softwood logs into softwood lumber.
    Domestic manufacturers are essentially sawmills that turn softwood 
logs into lumber. A domestic manufacturer may be a company that is a 
single sawmill, or it may be a company that is composed of multiple 
sawmills.

Importers

    The term `importer' is defined in Sec.  1217.11 to mean any person 
who imports softwood lumber from outside the United States for sale in 
the United States as a principal or as an agent, broker, or consignee 
of any person who manufactures softwood lumber outside the United 
States for sale in the United States, and who is listed in the import 
records as the importer of record for such softwood lumber. Import 
records are maintained by the U.S. Customs and Border Protection 
(Customs or CBP). Both domestic manufacturers and importers may be 
referred to in this rulemaking as ``entities.''

Expenses and Assessments

    Pursuant to Sec.  1217.50, the Board is authorized to incur 
expenses for research and promotion projects as well as administration. 
The Board's expenses are paid by assessments upon domestic 
manufacturers and importers. Pursuant to Sec.  1217.52(b), and subject 
to the exemptions specified in Sec.  1217.53, each domestic 
manufacturer and importer must pay an assessment to the Board at the 
rate of $0.35 per thousand board feet of softwood lumber, except that 
no entity has to pay an assessment on the first 15 mmbf of softwood 
lumber otherwise subject to assessment in a fiscal year. Domestic 
manufacturers pay assessments based on the volume of softwood lumber 
shipped within the United States and importers pay assessments based on 
the volume of softwood lumber imported to the United States. Pursuant 
to paragraphs (d) and (j) in Sec.  1217.52, respectively, domestic 
manufacturers and importers who pay their assessments to the Board must 
do so no later than the 30th calendar day of the month following the 
end of the quarter in which the softwood lumber was shipped or 
imported.

Exemptions

    Section 1217.53 prescribes exemptions from assessment. Pursuant to 
paragraph (a) of that section, the original de minimis quantity 
exemption threshold under part 1217 was 15 mmbf. Thus, U.S. 
manufacturers and importers that domestically ship and/or import less 
than 15 mmbf feet annually have been exempt from paying assessments. 
Domestic manufacturers and importers that ship or import less than the 
de minimis quantity of softwood lumber must apply to the Board each 
year for a certificate of exemption and provide documentation as 
appropriate to support their request.
    Pursuant to paragraph (b) of Sec.  1217.53, domestic manufacturers 
and importers that ship or import 15 mmbf or more annually do not pay 
assessments on their first 15 mmbf domestically shipped or imported. 
This exemption is intended for the purpose of creating an equality 
amongst those within the industry with regard to the program's 
assessment. Just as those that manufacture or import under 15 mmbf do 
not have to pay assessments, those at or above this level may reduce 
their assessable volume by 15 mmbf.\1\ For example, an entity that 
ships or imports 20 mmbf annually only has to pay assessments on 5 mmbf 
of softwood lumber. This exemption creates fairness; it levels the 
playing field because all entities, regardless of size, do not have to 
pay assessments on their first 15 mmbf shipped or imported. For 
purposes of this document, this exemption is referred to as the 
``equity exemption.'' Pursuant to paragraphs (c) and (d) of Sec.  
1217.53, respectively, exports of softwood lumber from the United 
States and organic softwood lumber are also exempt from assessment.
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    \1\ USDA notes that the de minimis level and the equity 
exemption are purposefully aligned and any change in the de minimis 
would result in a corresponding modification to the equity 
exemption.
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Reports and Records

    Pursuant to Sec.  1217.70, domestic manufacturers and importers who 
pay their assessments directly to the Board must submit with their 
payment a report that specifies the quantity of softwood lumber 
domestically shipped or imported. Pursuant to Sec.  1217.71, all 
domestic manufacturers and importers must maintain books and records 
necessary to verify reports for a period of 2 years beyond the fiscal 
year to which they apply, including those exempt. These records must be 
made available during normal business hours for inspection by Board 
staff or USDA.

Other Relevant Order Provisions

    The original 15 mmbf quantity exemption threshold is referenced in 
other Order provisions. Section 1217.40 specifies that the Board is 
composed of domestic manufacturers and importers who domestically ship 
or import 15 mmbf or more of softwood lumber annually. Section 1217.41 
specifies that

[[Page 49487]]

persons interested in serving on the Board must also domestically ship 
or import 15 mmbf or more softwood lumber annually. Finally, Sec.  
1217.101 regarding referendum procedures specifies that eligible 
domestic manufacturers and importers that can vote in referenda must 
domestically ship or import 15 mmbf or more of softwood lumber 
annually.

Initial Referendum and Summary of Board Activities

    The softwood lumber program was implemented after notice and 
comment rulemaking and a May 2011 referendum demonstrating strong 
support for the program. Pursuant to Sec.  1217.81(a), the program had 
to pass by a majority of those voting in the referendum who also 
represented a majority of the volume voted. Sixty-seven percent of the 
entities who voted, who together represented 80 percent of the volume, 
in the referendum favored implementation of the program. Entities that 
domestically shipped or imported 15 mmbf or more of softwood lumber 
annually were eligible to vote in the referendum. As previously 
mentioned, the program took effect in August 2011 and assessment 
collection began in January 2012.
    The softwood lumber program has continued to operate at the 15 mmbf 
exemption threshold since its inception. During these years, the Board 
has funded a variety of activities designed to increase the demand for 
softwood lumber. The Board funded a U.S. Tall Wood Building Prize 
Competition that is helping to showcase the benefits of building tall 
structures with wood. The Board also funds research on wood standards; 
a communications program, which includes continuing education courses 
for architects and engineers; and a construction and design program 
that provides technical support to architects and structural engineers 
about using wood.

Summary of USDA's Analysis of the De Minimis Quantity Under the 
Softwood Lumber Program

    The Secretary has authority under section 516 of the 1996 Act to 
exempt any de minimis quantity of an agricultural commodity otherwise 
covered by an order: ``An order issued under this subchapter may 
contain . . . authority for the Secretary to exempt from the order any 
de minimis quantity of an agricultural commodity otherwise covered by 
the order. . . .'' 7 U.S.C. 7415(a). A de minimis quantity exemption 
allows an industry to exempt from assessment small entities that could 
be unduly burdened from an order's requirements (i.e., assessment and 
quarterly reporting obligations). Because the 1996 Act does not 
prescribe the methodology or formula for computing a de minimis 
quantity, the Secretary has discretion to determine a reasonable and 
appropriate quantity and establish this level through notice and 
comment rulemaking. Pursuant to section 525 of the 1996 Act, 7 U.S.C. 
7424, the Secretary may issue such regulations as may be necessary to 
carry out an order.
    In evaluating the merits of a de minimis quantity for the softwood 
lumber program, USDA considered several factors. These factors include: 
an estimate of the total quantity of softwood lumber covered under part 
1217 (quantity assessed and quantity exempted); available funding to 
support a viable program; free rider implications; and the impact of 
program requirements on entities (above and below a de minimis 
threshold). USDA reviewed such factors in light of all available data 
and information to determine whether a de minimis quantity is 
reasonable. USDA balanced the multiple factors to assess whether one 
exemption threshold would work better than another when the factors are 
considered collectively. The analysis was based on the current 
assessment rate of $0.35 per thousand board feet.\2\
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    \2\ If the assessment rate changes significantly, USDA could 
revisit the de minimis threshold.
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    The following tables are republished from USDA's analysis of the de 
minimis quantity under the softwood lumber program contained in the May 
2017 proposed rule (82 FR 24583).
    Table 1 shows the estimate of the supply of U.S. softwood lumber 
used in the analysis, accounting for both U.S. shipments and imports. 
U.S. shipments were estimated using capacity\3\ data from Forest 
Economic Advisors (FEA). Total imports was estimated using data from 
CBP.
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    \3\ A sawmill's operating capacity is the total amount of 
softwood lumber that it could manufacture (or produce) if fully 
utilizing all of its resources (such as labor and equipment).

          Table 1--Supply of Softwood Lumber in the U.S. (MMBF)
------------------------------------------------------------------------
                 Shipments \1\                  Imports \2\   Supply \3\
------------------------------------------------------------------------
28,754........................................       12,495       41,249
------------------------------------------------------------------------
\1\ FEA; \2\ CBP; \3\ The sum of U.S. Shipments and Imports.

    Table 2 shows assessable volume and revenue at exemption levels of 
30, 25, 20, 15 and 10 mmbf, as well as with no exemptions. The table 
accounts for both the de minimis and equity exemptions under part 1217, 
and an assessment rate of $0.35 per thousand board feet.

                Table 2--Assessable Volume and Assessment Revenue at Exemption Levels (MMBF) \1\
----------------------------------------------------------------------------------------------------------------
                                                                                  De minimis and    Assessment
                 Volume equal to or greater than                    De minimis        equity        revenue ($)
                                                                  exemption only    exemptions          \2\
----------------------------------------------------------------------------------------------------------------
30..............................................................          37,965          32,805     $11,481,698
25..............................................................          38,319          33,694      11,792,941
20..............................................................          38,990          34,690      12,141,349
15..............................................................          39,679          35,854      12,548,792
10..............................................................          40,013          37,183      13,014,059
No exemptions...................................................          41,249          41,249      14,437,099
----------------------------------------------------------------------------------------------------------------
\1\ 2015 data from FEA and CBP were used to construct this table.
\2\ The product of total assessable volume, accounting for both de minimis and equity exemptions, and the
  assessment rate of $0.35 per thousand board feet.


[[Page 49488]]

    Table 3 is the inverse of Table 2 in that it shows exempt volume at 
de minimis and equity exemptions of 30, 25, 20, 15 and 10 mmbf.

                              Table 3--Exempt Volume at Exemption Levels (MMBF) \1\
----------------------------------------------------------------------------------------------------------------
                                                     De minimis exemption only         De minimis and equity
                                                 --------------------------------           exemptions
                Volume less than                                                 -------------------------------
                                                      Volume       % Exempt \2\       Volume       % Exempt \2\
----------------------------------------------------------------------------------------------------------------
30..............................................           3,284               8           8,444              20
25..............................................           2,930               7           7,555              18
20..............................................           2,259               5           6,559              16
15..............................................           1,570               4           5,395              13
10..............................................           1,236               3           4,066              10
----------------------------------------------------------------------------------------------------------------
\1\ 2015 data from FEA and CBP were used to construct this table.
\2\ The quotient of total exempt volume and total 2015 U.S. supply (the sum of U.S. shipments and U.S. imports)
  of 41,249 MMBF.

    Table 4 shows the number of entities (domestic manufacturers and 
importers) that would be assessed and the number of entities that would 
be exempt at the exemption thresholds of 30, 25, 20, 15 and 10 mmbf.

                      Table 4--Assessed and Exempt Entities at Exemption Levels (MMBF) \1\
----------------------------------------------------------------------------------------------------------------
                                                             Assessed                         Exempt
                                                 ---------------------------------------------------------------
                  Volume (MMBF)                      Number of                       Number of
                                                     entities     % Assessed \2\     entities      % Exempt \2\
----------------------------------------------------------------------------------------------------------------
30..............................................             172              16             882              84
25..............................................             185              18             869              82
20..............................................             215              20             839              80
15..............................................             255              24             799              76
10..............................................             283              26             771              73
None............................................           1,054             100  ..............               0
----------------------------------------------------------------------------------------------------------------
\1\ 2015 data from FEA and CBP were used to construct this table.
\2\ The quotient of No. of Entities and total domestic manufacturers and importers recorded in the industry
  (1,054) in 2015.

    Based on its analysis, USDA determined the following: Exemption 
thresholds of 10 to 15 mmbf would exempt 10 to 13 percent of the total 
volume of softwood lumber (taking into account both the de minimis and 
equity exemptions). This is close to the range exempt under other 
research and promotion programs. While all of the exemption thresholds 
analyzed would generate sufficient revenue for a viable program, the 
additional revenue that could be collected if the de minimis level were 
reduced much lower than 15 mmbf would likely not be worth the 
additional costs. At this threshold, free rider implications would be 
minimal because only 4 percent of the volume of softwood lumber would 
be exempted as de minimis. Applying both the de minimis and equity 
exemptions at 15 mmbf would allow the program to assess almost 90 
percent of the total volume of softwood lumber.
    Further, the program functioned successfully in 2015 with 
assessment revenue of $12.905 million with de minimis and equity 
exemptions of 15 mmbf. The Board has conducted activities at this level 
of funding that have helped build demand for softwood lumber, including 
a prize competition for tall wood buildings, research on wood 
standards, and an education program for architects and engineers on 
building with wood. An independent evaluation completed in 2016 
concluded that activities of the Board increased sales of softwood 
lumber between 2011 and 2015 by 1.683 bbf or $596 million. This equates 
to a return on investment of $15.55 of additional sales for every $1 
spent on promotion by the Board.\4\
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    \4\ Prime Consulting, Softwood Lumber Board, Comprehensive 
Program ROI, 2012-2015, February 2016.
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    Therefore, when considering all of the factors collectively, USDA 
concludes that 15 mmbf is a reasonable and most appropriate de minimis 
quantity under part 1217.\5\ Accordingly, this rule establishes the de 
minimis quantity threshold under part 1217 at 15 mmbf. Thus, no 
amendment to part 1217 is necessary.
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    \5\ As stated previously, the de minimis level and the equity 
exemption are purposefully aligned, and therefore this conclusion 
accounts for the equity exemption at 15 mmbf.
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Final 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 this final rule on 
small entities as defined by the Small Business Administration (SBA). 
The classification of a business as small, as defined by the SBA, 
varies by industry. If a business is defined as ``small'' by SBA size 
standards, then it is ``eligible for government programs and 
preferences reserved for `small business' concerns.'' \6\ Accordingly, 
AMS has considered the economic impact of this action on such entities.
---------------------------------------------------------------------------

    \6\ https://www.sba.gov/contracting/getting-started-contractor/make-sure-you-meet-sba-size-standards/small-business-size-regulations.
---------------------------------------------------------------------------

    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 SBA 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.\7\
---------------------------------------------------------------------------

    \7\ SBA does have a small business size standard for 
``Sawmills'' of 500 employees (see https://www.sba.gov/sites/default/files/files/Size_Standards_Table.pdf). Based on USDA's 
understanding of the lumber industry, using this criteria would be 
impractical as sawmills often use contractors rather than employees 
to operate and, therefore, many mills would fall under this criteria 
while being, in reality, a large business. Therefore, USDA used 
agricultural service firm as a more appropriate criteria for this 
analysis.

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

[[Page 49489]]

    Using an average price of $330 per thousand board feet,\8\ a 
domestic manufacturer or importer who ships less than about 23 mmbf per 
year would be considered a small entity for purposes of the RFA. As 
shown in Table 4, there were 1,054 domestic manufacturers and importers 
of softwood lumber based on 2015 data. Of these, 864 entities shipped 
or imported less than 23 mmbf and would be considered to be small 
entities under the SBA definition. Thus, based on the $7.5 million 
threshold, the majority of domestic manufacturers and importers of 
softwood lumber would be considered small entities for purposes of the 
RFA.
---------------------------------------------------------------------------

    \8\ Random Lengths Publications, Inc.; www.randomlengths.com.
---------------------------------------------------------------------------

    This action establishes a de minimis quantity exemption threshold 
under part 1217. Part 1217 is administered by the Board with oversight 
by USDA. In response to a federal district court decision in Resolute, 
USDA conducted a new analysis to determine a reasonable and appropriate 
de minimis threshold. Based on this analysis, this final rule 
establishes the de minimis quantity threshold at 15 mmbf and entities 
manufacturing (and domestically shipping) or importing less than 15 
mmbf per year would be exempt from paying assessments under part 1217. 
Authority for this action is provided in sections 516(a)(2), 516(g) and 
525 of the 1996 Act.
    Regarding the economic impact of the de minimis exemption, the 
exemption allows the Board to exempt from assessment small entities 
that would be unduly burdened by the program's obligations. At the 15 
mmbf exemption threshold, small manufacturers and importers that 
domestically ship or import less than 15 mmbf of softwood lumber will 
not have to pay assessments under the program.
    Additionally, larger manufacturers and importers will not have to 
pay assessments on the first 15 mmbf of softwood lumber domestically 
shipped or imported each year. This exemption is intended for the 
purpose of equity, whereby all entities who must pay assessments may 
reduce their assessable volume by 15 mmbf. This exemption benefits 
smaller manufacturers and importers whose annual shipments or imports 
are above the de minimis threshold of 15 mmbf. With this exemption, an 
entity that ships or imports a quantity of softwood lumber equal to the 
RFA-small business definition of 23 mmbf, would only pay assessments on 
no more than 8 mmbf of softwood lumber.
    To calculate the impact of the assessment rate on the revenue of an 
assessment payer, the assessment rate is divided by an average price. 
Using an average 2015 price of $330 per thousand board feet, the 
assessment rate as a percentage of price could range from 0.106 percent 
at the current assessment rate to 0.151 percent at the maximum 
assessment rate. This analysis helps identify the impact of the 
assessment rate on the revenues of assessment payers. At the current 
assessment rate of $0.35 per thousand board feet to the maximum 
assessment rate of $0.50 per thousand board feet, assessment payers 
would owe between 0.106 percent and 0.151 percent of their revenues, 
respectively.
    In its analysis of alternatives, USDA evaluated five different 
exemption thresholds--30, 25, 20, 15 and 10 mmbf using 2015 data--
accounting for both the de minimis and equity exemptions, as well as 
having no exemptions under the program. USDA evaluated these 
alternatives based on the following factors: an estimate of quantity of 
softwood lumber covered under the program (quantity assessed and 
quantity exempted); available funding to support a viable program; free 
rider implications; and the impact of program requirements on entities 
(above and below a de minimis threshold). USDA conducted a balancing 
test among these factors to assess whether one exemption threshold 
works better than another when the factors are considered collectively.
    In reviewing the quantity of assessable versus exempt softwood 
lumber at the alternative exemption thresholds, USDA found that at an 
exemption threshold of 30 mmbf, a total of 32.805 bbf would be assessed 
with 3.284 bbf, or 8 percent, exempt as de minimis, plus an additional 
5.16 bbf exempt as equity for 20 percent of total volume exempt; at 25 
mmbf, a total of 33.694 bbf would be assessed with 2.93 bbf, or 7 
percent, exempt as de minimis, plus an additional 4.625 bbf exempt as 
equity for 18 percent total volume exempt; at a threshold of 20 mmbf, a 
total of 34.69 bbf would be assessed with 2.259 bbf, or 5 percent, 
exempt as de minimis, plus an additional 4.3 bbf exempt as equity for 
16 percent total volume exempt; at a threshold of 15 mmbf, a total of 
35.854 bbf would be assessed with 1.57 bbf, or 4 percent, exempt as de 
minimis, plus an additional 3.825 bbf exempt as equity for 13 percent 
total volume exempt; at a threshold of 10 mmbf, a total of 37.183 bbf 
would be assessed, with 1.236 bbf, or 3 percent, exempt as de minimis, 
plus an additional 2.83 bbf exempt as equity for 10 percent total 
volume exempt; and with no exemptions, a total of 41.249 bbf would be 
assessed. In reviewing the total volume exempt under the softwood 
lumber program (taking into account both the de minimis and equity 
exemptions), thresholds of 10 to 15 mmbf exempt between 10 and 13 
percent of the volume, which is close to the range exempt under other 
programs.
    In reviewing available funding to support a viable program at the 
alternative exemption thresholds, at an exemption threshold of 30 mmbf, 
estimated assessment revenue is $11.482 million; at 25 mmbf, estimated 
assessment revenue is $11.793 million (an additional $311,243); at a 
threshold of 20 mmbf, estimated assessment revenue is $12.141 million 
(an additional $348,408); at a threshold of 15 mmbf, estimated 
assessment revenue is $12.549 million (an additional $407,444); at a 
threshold of 10 mmbf, estimated assessment revenue is $13.014 million 
(an additional $465,267); and with no exemptions, estimated assessment 
revenue is $14.437 million (an additional $1.423 million).
    Assessment revenue under the current softwood lumber program has 
ranged from about $10.638 million in 2012 to $12.905 million in 2015. 
At this level of revenue, the current program has seen success. The 
revenues reviewed at the different exemption thresholds are comparable 
to these levels or higher. Thus, all of the exemption thresholds 
analyzed would generate sufficient revenue for a viable program.
    Regarding free riders, USDA notes that the key to assessing the 
free rider implications of a de minimis quantity is not the number of 
entities exempt under a program but rather the volume of product 
exempt. This is because assessments are based on volume shipped or 
imported and not on the number of entities; assessments are not paid by 
entities on a pro rata basis. In evaluating free rider implications at 
the alternative exemption thresholds, at an exemption threshold of 30 
mmbf, 84 percent of the number of entities (or 882) would be exempt but 
only 8 percent of the volume would be exempt as de minimis; at a 
threshold of 25 mmbf, 82 percent of the number of entities (or 869) 
would be exempt, but only 7 percent of the volume would be exempt as de 
minimis; at a threshold of 20 mmbf, 80 percent of the number of 
entities (or 839) would be exempt, but

[[Page 49490]]

only 5 percent of the volume would be exempt as de minimis; at a 
threshold of 15 mmbf, 76 percent of the number of entities (or 799) 
would be exempt, but only 4 percent of the volume would be exempt as de 
minimis; and at a threshold of 10 mmbf, 73 percent of the number of 
entities (or 771) would be exempt, but only 3 percent of the volume 
would be exempt as de minimis.
    In evaluating the impact of the program's requirements at the 
alternative exemption thresholds, entities that ship or import at or 
above the de minimis threshold must pay assessments to the Board. 
Assessment payers must also submit a report to the Board each quarter 
of the volume of softwood lumber shipped or imported for the respective 
quarter. Entities that ship or import below the de minimis threshold 
must apply to the Board each year for a certificate of exemption and 
provide documentation as appropriate to support their request. The 
reporting and recordkeeping requirements are detailed in the section 
below titled Paperwork Reduction Act.
    At an exemption threshold of 30 mmbf, 172 entities would pay 
assessments and 882 would be exempt; at 25 mmbf, 185 entities would pay 
assessments and 869 would be exempt; at 20 mmbf, 215 entities would pay 
assessments and 839 would be exempt; at 15 mmbf, 255 entities would pay 
assessments and 799 would be exempt; at 10 mmbf, 283 entities would pay 
assessments and 771 would be exempt. Thus, as the exemption threshold 
is reduced, more entities would be subject to the assessment and 
quarterly reporting obligation under part 1217.
    Further, in considering program compliance costs, USDA estimates 
the cost of an on-site audit of a single entity at $5,000 or more. 
Thus, the cost to pursue a compliance case against an entity that 
shipped less than 10 mmbf, 9 mmbf for example, would outweigh the 
revenue that would be collected from that entity of $3,150. Similarly, 
the assessment revenue that would be collected from an entity that 
shipped less than 15 mmbf, 12 mmbf for example, would amount to $4,200. 
The benefit of assessing smaller manufacturers, $3,150 at 9 mmbf and 
$4,200 at 12 mmbf, does not outweigh the cost of pursuing compliance 
cases against them at $5,000 per entity. The point at which the 
assessment revenue that would be collected from an entity outweighs the 
estimated cost of $5,000 to pursue a compliance case is an entity with 
volume equal to or greater than 14.3 mmbf.\9\ This level is close to 15 
mmbf. By this analysis, the selection of 15 mmbf as the de minimis 
quantity is reasonable.
---------------------------------------------------------------------------

    \9\ This figure is computed by dividing the estimated cost to 
pursue a compliance case against an entity of $5,000 by the 
assessment rate of $0.35 per thousand board feet.
---------------------------------------------------------------------------

    Analysis of the 23 mmbf-RFA small business threshold as a 
reasonable option for de minimis shows that 190 entities would be 
subject to assessment and 864 entities would be exempt. In terms of 
volume, 38.44 bbf would be assessed, or 93 percent of total volume, and 
2.809 bbf would be exempt, or 7 percent of total volume.
    Based upon the analysis contained herein, any of the exemption 
thresholds reviewed would be reasonable because they would exempt from 
3 to 8 percent of the volume of softwood lumber as de minimis. However, 
when the total volume exempt under the softwood lumber program is 
considered (taking into account both the de minimis and equity 
exemptions), thresholds of 10 to 15 mmbf exempt between 10 and 13 
percent of the volume, which is close to the range exempt under other 
programs. While all of the exemption thresholds analyzed would generate 
sufficient revenue for a viable program, the additional revenue that 
could be collected if the de minimis level were reduced much lower than 
15 mmbf would likely not be worth the additional costs. The softwood 
lumber program operated successfully since its inception at an 
exemption threshold of 15 mmbf.\10\
---------------------------------------------------------------------------

    \10\ An independent evaluation of the softwood lumber program 
showed that the activities of the Board increased sales of softwood 
lumber between 2011 and 2015 by 1.683 bbf or $596 million. This 
equates to a return on investment of $15.55 of additional sales for 
every $1 spent on promotion by the Board. By this metric, part 1217 
to date has been effective. USDA therefore finds that 15 mmbf is a 
reasonable exemption level for de minimis.
---------------------------------------------------------------------------

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the information collection and recordkeeping requirements 
imposed by part 1217 have been approved previously under OMB control 
number 0581-0093. This rule imposes no additional reporting and 
recordkeeping burden on domestic manufacturer and importers of softwood 
lumber. The reporting requirements pertaining to this rule are 
described in the following paragraphs.
    As previously mentioned, pursuant to Sec.  1217.53(a), domestic 
manufacturers and importers who domestically ship or import less than 
the de minimis threshold must apply to the Board each year for a 
certificate of exemption and provide documentation as appropriate to 
support their request. The reporting burden for this collection of 
information is estimated to average 0.25 hours per domestic 
manufacturer or importer per report, or 0.25 hours per year (1 request 
per year per exempt entity). This computes to a total annual burden of 
199.75 hours (0.25 hours times 799 exempt entities at the 15 mmbf de 
minimis exemption threshold from Table 4).
    Further, pursuant to Sec.  1217.70, domestic manufacturers and 
importers that ship or import at or over the de minimis exemption level 
and pay their assessments directly to the Board must submit a shipment/
import report for each quarter when assessments are due. The reporting 
burden for this collection of information is estimated to average 0.5 
hours per domestic manufacturer or importer per report, or 2 hours per 
year (4 reports per year times 0.5 hours per report). This computes to 
a total annual burden of 510 hours (255 assessed entities (from Table 
4--No. of Assessed Entities at 15 mmbf) at 2 hours each equals 510 
hours).
    All domestic manufacturers and importers must also maintain records 
sufficient to verify their reports. The recordkeeping burden for 
keeping this information is estimated to average 0.5 hours per record 
keeper maintaining such records, or 527 hours (1,054 total entities 
assessed (from Table 4--No. of Assessed Entities at no exemption) times 
0.5 hours).
    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 rule.
    USDA 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.
    Regarding outreach efforts, USDA initiated this action in response 
to a May 2016 federal court decision in Resolute. This rule establishes 
the de minimis quantity exemption under part 1217.
    A proposed rule concerning this action was published in the Federal 
Register on May 30, 2017 (82 FR 24583). The Board distributed copies of 
the proposed rule via email to domestic manufacturers and importers. 
The proposal was also made available through the internet by USDA and 
the

[[Page 49491]]

Office of the Federal Register. A 60-day comment period ending July 31, 
2017, was provided to allow interested persons to submit comments.

Analysis of Comments

    Thirty-three comments were received in response to the proposed 
rule. Of those 33 comments, one was outside the scope of the rulemaking 
and the remaining 32 supported the 15 mmbf exemption threshold. The 
following is an analysis of those 32 comments.
    Several commenters reiterated the data presented in the proposed 
rule. They cited Table 3 which shows that, at the 15 mmbf threshold, 
entities that pay into the program account for 96 percent of the U.S. 
softwood lumber market volume. Thus, free rider concerns are minimal. 
Reducing the exemption level by a third (down to 10 mmbf) would only 
increase that number to 97 percent of the U.S. market and would not be 
worth the additional effort. There are a large number of small 
manufacturers and importers who account for a small percentage of the 
softwood lumber shipped in the United States. The commenters opined 
that the cost of collecting an assessment from such a large number of 
entities outweighs the revenue that could be collected from such a 
small amount of volume. They agreed that Board staff time would be 
better spent on promotion activities than trying to collect a small 
amount of revenue from several small entities.
    One commenter opined that the methodology used by USDA to determine 
the de minimis threshold was comprehensive and explored tradeoffs 
involved in setting a threshold below which it is counterproductive to 
the collection of assessments to further the program. The commenter 
stated that ``. . . USDA dealt with a large amount of data on imports 
that it appropriately scrubbed to exclude obvious errors and 
outliers.'' Within the populations of domestic manufacturers and 
importers categorized based on volume, USDA conducted a series of 
``what if'' analyses to determine the impact of various de minimis 
levels on revenue in terms of ``. . . administrative costs, the 
compliance burden on respondents and the potential for ``free rider'' 
benefits.'' The commenter also observed that USDA compared the results 
to other federal promotion programs authorized under the 1996 Act and 
overseen by USDA where it found that 8 of 10 programs exempt a de 
minimis quantity from assessment, and that half of those programs 
exempt between 3 and 11 percent of the total quantity covered by the 
program as de minimis. Among the range of alternatives that USDA 
analyzed, the 10 and 15 mmbf thresholds came closest to this range. The 
commenter stated that USDA also compared the benefits derived from 
these thresholds with the likely compliance costs incurred, which USDA 
estimated at $5,000 per entity. The point at which revenues collected 
from entities that would fall below the compliance cost was found to be 
at 14.3 mmbf, which is closest to the 15 mmbf threshold. The 
combination of these results led USDA to conclude that 15 mmbf is the 
most appropriate benchmark between volumes assessed and not assessed. 
The commenter concluded that, ``. . . while there is no special formula 
for computing a de minimis threshold . . . ,'' the commenter believes 
that USDA selected a reasonable exemption amount based on the 
industry's structure and the program's benefits and costs.
    Six commenters opined that the 15 mmbf threshold appropriately 
separates the high production manufacturers from small entities that 
manufacture specialty products and sell into mostly local and niche 
markets. They agreed that specialty products do not benefit as much 
from a national promotion program, and that growth in market share 
benefits entities that manufacture larger volumes to a greater degree 
than those that fall below the 15 mmbf threshold.
    Several commenters expressed concern with the administrative burden 
that complying with a mandatory promotion program could place on small 
entities below the 15 mmbf threshold. One commenter stated that, on a 
per board foot ratio, the costs to participate in the program are lower 
for larger entities than smaller entities. Many small entities still 
record their shipments by hand. Larger entities, on the other hand, can 
afford to invest in automated computer reporting systems and can have 
personnel dedicated to efficiently analyzing their reporting. Thus, the 
administrative costs for smaller entities to participate in the program 
are higher than the costs for larger entities.
    Two commenters also referenced the part's 8 percent cap on 
administrative expenses. They opined that the revenue gained from 
collecting assessments from numerous small entities would not be 
sufficient to justify the additional costs and administrative 
complexities.
    Three commenters expressed support for the equity exemption. They 
opined that the equity exemption makes the program fair for everyone. 
One commenter opined that the equity exemption mitigates the free rider 
problem because larger entities do not have to pay assessments on their 
first 15 mmbf shipped. Without the equity exemption, assessment payers 
would pay more, thereby increasing the free rider impact.\11\
---------------------------------------------------------------------------

    \11\ For example, as explained in the May 2017 proposed rule, if 
the thresholds for de minimis and equity exemptions were 10 mmbf, 
Company A that ships 8 mmbf annually would pay no assessments, and 
Company B that ships 30 mmbf annually would have to pay assessments 
on 20 mmbf of softwood lumber. At an assessment rate of $0.35 per 
thousand board feet, this would compute to $7,000 in assessments. 
Without the equity exemption, Company A would still pay no 
assessments but Company B would have to pay assessments on 30 mmbf. 
This would compute to $10,500 in assessments, which is an additional 
burden of $3,500. Thus, the equity exemption reduces the burden of 
free riders on entities funding the program. It creates fairness 
because it exempts from assessment an equal volume from all 
entities, regardless of their size.
---------------------------------------------------------------------------

    Two commenters discussed the efforts of the Blue Ribbon Commission 
(BRC), the proponent group, in promulgating the program. They stated 
that the BRC surveyed the industry on issues related to the program, 
including the de minimis exemption threshold. They stated that the BRC 
sought a level that would generate maximum revenue for the program 
while being mindful of the cost of administering the program and 
collecting assessments. The BRC's survey found that 15 mmbf was the 
appropriate level that was broadly accepted by the industry.
    Several commenters also expressed their overall support for the 
softwood lumber program. They agreed that the program provides a 
strong, unified voice for the industry. One commenter stated that the 
program has contributed significantly to strengthening the position of 
softwood lumber in the market place as well as expanding and developing 
new markets for softwood lumber. The commenters also agreed that 
funding for the program has been appropriate since assessment 
collection began in 2012. None of the commenters supported increasing 
the exemption threshold thereby reducing funding for the program.
    No changes have been made to the proposed rule based on the 
comments received.
    After consideration of all relevant matters presented, including 
the available information and comments received, it is hereby found 
that this rule, is consistent with and will effectuate the purposes of 
the 1996 Act.

List of Subjects in 7 CFR Part 1217

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


[[Page 49492]]


    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.

    Dated: October 19, 2017.
Bruce Summers,
Acting Administrator.
[FR Doc. 2017-23094 Filed 10-25-17; 8:45 am]
 BILLING CODE 3410-02-P



                                                                                                                                                                                            49485

                                             Rules and Regulations                                                                                         Federal Register
                                                                                                                                                           Vol. 82, No. 206

                                                                                                                                                           Thursday, October 26, 2017



                                             This section of the FEDERAL REGISTER                    Executive Order 12866 and Executive                   obligation imposed in connection with
                                             contains regulatory documents having general            Order 13563                                           an order, shall be filed within two years
                                             applicability and legal effect, most of which                                                                 after the effective date of an order,
                                             are keyed to and codified in the Code of                   Executive Orders 12866 and 13563
                                                                                                     direct agencies to assess all costs and               provision, or obligation subject to
                                             Federal Regulations, which is published under                                                                 challenge in the petition. The petitioner
                                             50 titles pursuant to 44 U.S.C. 1510.                   benefits of available regulatory
                                                                                                     alternatives and, if regulation is                    will have the opportunity for a hearing
                                             The Code of Federal Regulations is sold by              necessary, to select regulatory                       on the petition. Thereafter, USDA will
                                             the Superintendent of Documents.                        approaches that maximize net benefits                 issue a ruling on the petition. The 1996
                                                                                                     (including potential economic,                        Act provides that the district court of
                                                                                                     environmental, public health and safety               the United States for any district in
                                             DEPARTMENT OF AGRICULTURE                                                                                     which the petitioner resides or conducts
                                                                                                     effects, distributive impacts and equity).
                                                                                                                                                           business shall have the jurisdiction to
                                             Agricultural Marketing Service                          Executive Order 13563 emphasizes the
                                                                                                                                                           review a final ruling on the petition, if
                                                                                                     importance of quantifying both costs
                                                                                                                                                           the petitioner files a complaint for that
                                             7 CFR Part 1217                                         and benefits, reducing costs,
                                                                                                                                                           purpose not later than 20 days after the
                                                                                                     harmonizing rules and promoting
                                             [Document Number AMS–SC–16–0066]                                                                              date of the entry of USDA’s final ruling.
                                                                                                     flexibility. This action falls within a
                                                                                                     category of regulatory actions that the               Background
                                             Softwood Lumber Research,
                                                                                                     Office of Management and Budget                         This rule establishes a de minimis
                                             Promotion, Consumer Education and
                                                                                                     (OMB) exempted from Executive Order                   quantity exemption threshold under the
                                             Industry Information Order; De Minimis
                                                                                                     12866 review. Additionally, because                   Softwood Lumber Research, Promotion,
                                             Quantity Exemption Threshold
                                                                                                     this rule does not meet the definition of             Consumer Education and Industry
                                             AGENCY:  Agricultural Marketing Service,                a significant regulatory action it does               Information Order (Order), codified at 7
                                             USDA.                                                   not trigger the requirements contained                CFR part 1217. This part is administered
                                             ACTION: Final rule.                                     in Executive Order 13771. See OMB’s                   by the Softwood Lumber Board (Board)
                                                                                                     Memorandum titled ‘‘Interim Guidance                  with oversight by USDA’s Agricultural
                                             SUMMARY:   This rule establishes a de                   Implementing Section 2 of the Executive               Marketing Service (AMS). In Resolute
                                             minimis quantity exemption threshold                    Order of January 30, 2017, titled                     Forest Products Inc., v. USDA, et al.
                                             under the U.S. Department of                            ‘Reducing Regulation and Controlling                  (Resolute), the court found that, on the
                                             Agriculture’s (USDA) Agricultural                       Regulatory Costs’ ’’ (February 2, 2017).              basis of the estimates and information
                                             Marketing Service (AMS) regulations                                                                           submitted by the government to the
                                             regarding a national research and                       Executive Order 13175
                                                                                                                                                           court for review, the selection of 15
                                             promotion program for softwood                            This action has been reviewed in                    mmbf as the de minimis quantity (to be
                                             lumber. In response to a 2016 federal                   accordance with the requirements of                   exempted) under part 1217 was
                                             district court decision, the U.S.                       Executive Order 13175, Consultation                   arbitrary and capricious and that part
                                             Department of Agriculture (USDA)                        and Coordination with Indian Tribal                   1217 was therefore promulgated
                                             conducted a new analysis to determine                   Governments. The review reveals that                  unlawfully. The court did not vacate (or
                                             a reasonable and appropriate de                         this rule will not have substantial and               terminate) part 1217; the court
                                             minimis threshold. Based on that                        direct effects on Tribal governments and              remanded the matter to USDA and
                                             analysis, this rule establishes the de                  will not have significant Tribal                      program requirements remain in effect.
                                             minimis quantity threshold at 15                        implications.                                           To address the court’s decision,
                                             million board feet (mmbf) and entities                                                                        USDA conducted a new analysis to
                                                                                                     Executive Order 12988
                                             manufacturing (and domestically                                                                               determine a reasonable and appropriate
                                             shipping) or importing less than 15                        This rule has been reviewed under                  de minimis quantity exemption. USDA
                                             mmbf per year will be exempt from                       Executive Order 12988, Civil Justice                  analyzed various thresholds of
                                             paying assessments under the                            Reform. It is not intended to have                    exemption: 10, 15, 20, 25, and 30 mmbf.
                                             regulations.                                            retroactive effect. Section 524 of the                USDA also considered proposing no de
                                                                                                     1996 Act (7 U.S.C. 7423) provides that                minimis exemption. USDA’s analysis of
                                             DATES: Effective Date: November 27,
                                                                                                     it shall not affect or preempt any other              the data resulted in a determination that
                                             2017.
                                                                                                     Federal or State law authorizing                      a de minimis level of 15 mmbf is
                                             FOR FURTHER INFORMATION CONTACT:                        promotion or research relating to an                  reasonable and appropriate. The
                                             Maureen T. Pello, Marketing Specialist,                 agricultural commodity.                               analysis was published in a proposed
                                             Promotion and Economics Division,                          Under section 519 of the 1996 Act (7               rule on May 30, 2017 (82 FR 24583).
                                             Specialty Crops Program, AMS, USDA,                     U.S.C. 7418), a person subject to an                  This final rule establishes the de
                                             P.O. Box 831, Beavercreek, Oregon,                      order may file a written petition with                minimis quantity threshold under part
                                             97004; telephone: (503) 632–8848;                       USDA stating that an order, any                       1217 at 15 mmbf.
                                             facsimile (503) 632–8852; or electronic                 provision of an order, or any obligation
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                                             mail: Maureen.Pello@ams.usda.gov.                       imposed in connection with an order, is               Authority in the 1996 Act
                                             SUPPLEMENTARY INFORMATION: This rule,                   not established in accordance with the                  The 1996 Act authorizes USDA to
                                             affecting 7 CFR part 1217, is authorized                law, and request a modification of an                 establish agricultural commodity
                                             under the Commodity Promotion,                          order or an exemption from an order.                  research and promotion orders which
                                             Research and Information Act of 1996                    Any petition filed challenging an order,              may include a combination of
                                             (1996 Act) (7 U.S.C. 7411–7425).                        any provision of an order, or any                     promotion, research, industry


                                        VerDate Sep<11>2014   18:08 Oct 25, 2017   Jkt 244001   PO 00000   Frm 00001   Fmt 4700   Sfmt 4700   E:\FR\FM\26OCR1.SGM   26OCR1


                                             49486            Federal Register / Vol. 82, No. 206 / Thursday, October 26, 2017 / Rules and Regulations

                                             information, and consumer information                   turning) softwood logs into softwood                  Domestic manufacturers and importers
                                             activities funded by mandatory                          lumber.                                               that ship or import less than the de
                                             assessments. These programs are                            Domestic manufacturers are                         minimis quantity of softwood lumber
                                             designed to maintain and expand                         essentially sawmills that turn softwood               must apply to the Board each year for
                                             markets and uses for agricultural                       logs into lumber. A domestic                          a certificate of exemption and provide
                                             commodities. As defined under section                   manufacturer may be a company that is                 documentation as appropriate to
                                             513(1)(D) of the 1996 Act, agricultural                 a single sawmill, or it may be a                      support their request.
                                             commodities include the products of                     company that is composed of multiple                     Pursuant to paragraph (b) of
                                             forestry, which includes softwood                       sawmills.                                             § 1217.53, domestic manufacturers and
                                             lumber.                                                                                                       importers that ship or import 15 mmbf
                                                                                                     Importers
                                                The 1996 Act provides for a number                                                                         or more annually do not pay
                                             of optional provisions that allow the                     The term ‘importer’ is defined in                   assessments on their first 15 mmbf
                                             tailoring of orders for different                       § 1217.11 to mean any person who                      domestically shipped or imported. This
                                             commodities. Section 516 of the 1996                    imports softwood lumber from outside                  exemption is intended for the purpose
                                             Act provides permissive terms for                       the United States for sale in the United              of creating an equality amongst those
                                             orders. Section 516 states that an order                States as a principal or as an agent,                 within the industry with regard to the
                                             may include an exemption of de                          broker, or consignee of any person who                program’s assessment. Just as those that
                                             minimis quantities of an agricultural                   manufactures softwood lumber outside                  manufacture or import under 15 mmbf
                                             commodity. Further, section 516(g) of                   the United States for sale in the United              do not have to pay assessments, those at
                                             the 1996 Act provides authority for                     States, and who is listed in the import               or above this level may reduce their
                                             other action that is consistent with the                records as the importer of record for                 assessable volume by 15 mmbf.1 For
                                             purpose of the statute and necessary to                 such softwood lumber. Import records                  example, an entity that ships or imports
                                             administer a program.                                   are maintained by the U.S. Customs and                20 mmbf annually only has to pay
                                                                                                     Border Protection (Customs or CBP).                   assessments on 5 mmbf of softwood
                                             Overview of the Softwood Lumber                         Both domestic manufacturers and                       lumber. This exemption creates fairness;
                                             Program                                                 importers may be referred to in this                  it levels the playing field because all
                                                The softwood lumber program took                     rulemaking as ‘‘entities.’’                           entities, regardless of size, do not have
                                             effect in August 2011 (76 FR 46185) and                 Expenses and Assessments                              to pay assessments on their first 15
                                             assessment collection began in January                                                                        mmbf shipped or imported. For
                                             2012. Under part 1217, assessments are                     Pursuant to § 1217.50, the Board is                purposes of this document, this
                                             collected from domestic (U.S.)                          authorized to incur expenses for                      exemption is referred to as the ‘‘equity
                                             manufacturers and importers and are                     research and promotion projects as well               exemption.’’ Pursuant to paragraphs (c)
                                             used by the Board for projects that                     as administration. The Board’s expenses               and (d) of § 1217.53, respectively,
                                             promote market growth for softwood                      are paid by assessments upon domestic                 exports of softwood lumber from the
                                             lumber products used in single and                      manufacturers and importers. Pursuant                 United States and organic softwood
                                             multi-family dwellings as well as                       to § 1217.52(b), and subject to the                   lumber are also exempt from
                                             commercial construction. The Board is                   exemptions specified in § 1217.53, each               assessment.
                                             composed of 19 industry members                         domestic manufacturer and importer
                                                                                                     must pay an assessment to the Board at                Reports and Records
                                             (domestic manufacturers and importers)
                                                                                                     the rate of $0.35 per thousand board feet               Pursuant to § 1217.70, domestic
                                             who are appointed by the Secretary of
                                                                                                     of softwood lumber, except that no                    manufacturers and importers who pay
                                             Agriculture. The purpose of the program
                                                                                                     entity has to pay an assessment on the                their assessments directly to the Board
                                             is to strengthen the position of softwood
                                                                                                     first 15 mmbf of softwood lumber                      must submit with their payment a report
                                             lumber in the marketplace, maintain
                                                                                                     otherwise subject to assessment in a                  that specifies the quantity of softwood
                                             and expand markets for softwood
                                                                                                     fiscal year. Domestic manufacturers pay               lumber domestically shipped or
                                             lumber, and develop new uses for
                                                                                                     assessments based on the volume of                    imported. Pursuant to § 1217.71, all
                                             softwood lumber within the United
                                                                                                     softwood lumber shipped within the                    domestic manufacturers and importers
                                             States.
                                                                                                     United States and importers pay                       must maintain books and records
                                             Relevant Order Provisions                               assessments based on the volume of                    necessary to verify reports for a period
                                                                                                     softwood lumber imported to the United                of 2 years beyond the fiscal year to
                                             Domestic Manufacturers                                                                                        which they apply, including those
                                                                                                     States. Pursuant to paragraphs (d) and (j)
                                               The term ‘domestic manufacturer’ is                   in § 1217.52, respectively, domestic                  exempt. These records must be made
                                             defined in § 1217.8 to mean any person                  manufacturers and importers who pay                   available during normal business hours
                                             who is a first handler engaged in the                   their assessments to the Board must do                for inspection by Board staff or USDA.
                                             manufacturing, sale and shipment of                     so no later than the 30th calendar day                Other Relevant Order Provisions
                                             softwood lumber in the United States                    of the month following the end of the
                                             during a fiscal period and who owns, or                 quarter in which the softwood lumber                    The original 15 mmbf quantity
                                             shares in the ownership and risk of loss                was shipped or imported.                              exemption threshold is referenced in
                                             of manufacturing of softwood lumber or                                                                        other Order provisions. Section 1217.40
                                             a person who is engaged in the business                 Exemptions                                            specifies that the Board is composed of
                                             of manufacturing, or causes to be                         Section 1217.53 prescribes                          domestic manufacturers and importers
                                             manufactured, sold and shipped such                     exemptions from assessment. Pursuant                  who domestically ship or import 15
                                             softwood lumber in the United States                    to paragraph (a) of that section, the                 mmbf or more of softwood lumber
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                                             beyond personal use. The term does not                  original de minimis quantity exemption                annually. Section 1217.41 specifies that
                                             include persons who re-manufacture                      threshold under part 1217 was 15 mmbf.
                                                                                                                                                             1 USDA notes that the de minimis level and the
                                             softwood lumber that has already been                   Thus, U.S. manufacturers and importers
                                                                                                                                                           equity exemption are purposefully aligned and any
                                             subject to assessment. The term                         that domestically ship and/or import                  change in the de minimis would result in a
                                             ‘manufacture’ is defined in § 1217.13 to                less than 15 mmbf feet annually have                  corresponding modification to the equity
                                             mean the process of transforming (or                    been exempt from paying assessments.                  exemption.



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                                                                    Federal Register / Vol. 82, No. 206 / Thursday, October 26, 2017 / Rules and Regulations                                                                                       49487

                                             persons interested in serving on the                                          which includes continuing education                                        a viable program; free rider
                                             Board must also domestically ship or                                          courses for architects and engineers; and                                  implications; and the impact of program
                                             import 15 mmbf or more softwood                                               a construction and design program that                                     requirements on entities (above and
                                             lumber annually. Finally, § 1217.101                                          provides technical support to architects                                   below a de minimis threshold). USDA
                                             regarding referendum procedures                                               and structural engineers about using                                       reviewed such factors in light of all
                                             specifies that eligible domestic                                              wood.                                                                      available data and information to
                                             manufacturers and importers that can                                                                                                                     determine whether a de minimis
                                                                                                                           Summary of USDA’s Analysis of the De
                                             vote in referenda must domestically                                                                                                                      quantity is reasonable. USDA balanced
                                                                                                                           Minimis Quantity Under the Softwood
                                             ship or import 15 mmbf or more of                                                                                                                        the multiple factors to assess whether
                                                                                                                           Lumber Program
                                             softwood lumber annually.                                                                                                                                one exemption threshold would work
                                                                                                                             The Secretary has authority under                                        better than another when the factors are
                                             Initial Referendum and Summary of                                             section 516 of the 1996 Act to exempt
                                             Board Activities                                                                                                                                         considered collectively. The analysis
                                                                                                                           any de minimis quantity of an                                              was based on the current assessment
                                                The softwood lumber program was                                            agricultural commodity otherwise                                           rate of $0.35 per thousand board feet.2
                                             implemented after notice and comment                                          covered by an order: ‘‘An order issued
                                             rulemaking and a May 2011 referendum                                          under this subchapter may contain . . .                                       The following tables are republished
                                             demonstrating strong support for the                                          authority for the Secretary to exempt                                      from USDA’s analysis of the de minimis
                                             program. Pursuant to § 1217.81(a), the                                        from the order any de minimis quantity                                     quantity under the softwood lumber
                                             program had to pass by a majority of                                          of an agricultural commodity otherwise                                     program contained in the May 2017
                                             those voting in the referendum who also                                       covered by the order. . . .’’ 7 U.S.C.                                     proposed rule (82 FR 24583).
                                             represented a majority of the volume                                          7415(a). A de minimis quantity                                                Table 1 shows the estimate of the
                                             voted. Sixty-seven percent of the                                             exemption allows an industry to exempt                                     supply of U.S. softwood lumber used in
                                             entities who voted, who together                                              from assessment small entities that                                        the analysis, accounting for both U.S.
                                             represented 80 percent of the volume, in                                      could be unduly burdened from an                                           shipments and imports. U.S. shipments
                                             the referendum favored implementation                                         order’s requirements (i.e., assessment                                     were estimated using capacity3 data
                                             of the program. Entities that                                                 and quarterly reporting obligations).                                      from Forest Economic Advisors (FEA).
                                             domestically shipped or imported 15                                           Because the 1996 Act does not prescribe                                    Total imports was estimated using data
                                             mmbf or more of softwood lumber                                               the methodology or formula for                                             from CBP.
                                             annually were eligible to vote in the                                         computing a de minimis quantity, the
                                             referendum. As previously mentioned,                                          Secretary has discretion to determine a                                        TABLE 1—SUPPLY OF SOFTWOOD
                                             the program took effect in August 2011                                        reasonable and appropriate quantity and                                         LUMBER IN THE U.S. (MMBF)
                                             and assessment collection began in                                            establish this level through notice and
                                             January 2012.                                                                 comment rulemaking. Pursuant to                                               Shipments 1           Imports 2         Supply 3
                                                The softwood lumber program has                                            section 525 of the 1996 Act, 7 U.S.C.
                                             continued to operate at the 15 mmbf                                           7424, the Secretary may issue such                                         28,754 ...............       12,495            41,249
                                             exemption threshold since its inception.                                      regulations as may be necessary to carry                                     1 FEA; 2 CBP; 3 The      sum of U.S. Shipments
                                             During these years, the Board has                                             out an order.                                                              and Imports.
                                             funded a variety of activities designed to                                      In evaluating the merits of a de
                                             increase the demand for softwood                                              minimis quantity for the softwood                                            Table 2 shows assessable volume and
                                             lumber. The Board funded a U.S. Tall                                          lumber program, USDA considered                                            revenue at exemption levels of 30, 25,
                                             Wood Building Prize Competition that                                          several factors. These factors include: an                                 20, 15 and 10 mmbf, as well as with no
                                             is helping to showcase the benefits of                                        estimate of the total quantity of                                          exemptions. The table accounts for both
                                             building tall structures with wood. The                                       softwood lumber covered under part                                         the de minimis and equity exemptions
                                             Board also funds research on wood                                             1217 (quantity assessed and quantity                                       under part 1217, and an assessment rate
                                             standards; a communications program,                                          exempted); available funding to support                                    of $0.35 per thousand board feet.

                                                                      TABLE 2—ASSESSABLE VOLUME AND ASSESSMENT REVENUE AT EXEMPTION LEVELS (MMBF) 1
                                                                                                                                                                                                      De minimis          De minimis         Assessment
                                                                                             Volume equal to or greater than                                                                          exemption           and equity           revenue
                                                                                                                                                                                                         only             exemptions             ($) 2

                                             30   .................................................................................................................................................         37,965              32,805        $11,481,698
                                             25   .................................................................................................................................................         38,319              33,694         11,792,941
                                             20   .................................................................................................................................................         38,990              34,690         12,141,349
                                             15   .................................................................................................................................................         39,679              35,854         12,548,792
                                             10   .................................................................................................................................................         40,013              37,183         13,014,059
                                             No   exemptions .............................................................................................................................                  41,249              41,249         14,437,099
                                                1 2015
                                                     data from FEA and CBP were used to construct this table.
                                                2 The
                                                    product of total assessable volume, accounting for both de minimis and equity exemptions, and the assessment rate of $0.35 per thou-
                                             sand board feet.
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                                              2 If the assessment rate changes significantly,                                3 A sawmill’s operating capacity is the total                            manufacture (or produce) if fully utilizing all of its
                                             USDA could revisit the de minimis threshold.                                  amount of softwood lumber that it could                                    resources (such as labor and equipment).



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                                             49488                  Federal Register / Vol. 82, No. 206 / Thursday, October 26, 2017 / Rules and Regulations

                                               Table 3 is the inverse of Table 2 in                                        minimis and equity exemptions of 30,
                                             that it shows exempt volume at de                                             25, 20, 15 and 10 mmbf.

                                                                                                      TABLE 3—EXEMPT VOLUME AT EXEMPTION LEVELS (MMBF) 1
                                                                                                                                                                          De minimis exemption only                 De minimis and equity
                                                                                                                                                                                                                        exemptions
                                                                                           Volume less than
                                                                                                                                                                           Volume          % Exempt 2              Volume                % Exempt 2

                                             30   .....................................................................................................................           3,284                 8                    8,444                20
                                             25   .....................................................................................................................           2,930                 7                    7,555                18
                                             20   .....................................................................................................................           2,259                 5                    6,559                16
                                             15   .....................................................................................................................           1,570                 4                    5,395                13
                                             10   .....................................................................................................................           1,236                 3                    4,066                10
                                                1 2015    data from FEA and CBP were used to construct this table.
                                                2 The    quotient of total exempt volume and total 2015 U.S. supply (the sum of U.S. shipments and U.S. imports) of 41,249 MMBF.


                                               Table 4 shows the number of entities                                        that would be assessed and the number                            exemption thresholds of 30, 25, 20, 15
                                             (domestic manufacturers and importers)                                        of entities that would be exempt at the                          and 10 mmbf.

                                                                                      TABLE 4—ASSESSED AND EXEMPT ENTITIES AT EXEMPTION LEVELS (MMBF) 1
                                                                                                                                                                                    Assessed                                    Exempt
                                                                                            Volume (MMBF)                                                                 Number of                              Number of
                                                                                                                                                                                          % Assessed 2                                   % Exempt 2
                                                                                                                                                                           entities                               entities

                                             30 .....................................................................................................................               172               16                        882               84
                                             25 .....................................................................................................................               185               18                        869               82
                                             20 .....................................................................................................................               215               20                        839               80
                                             15 .....................................................................................................................               255               24                        799               76
                                             10 .....................................................................................................................               283               26                        771               73
                                             None ................................................................................................................                1,054              100      ........................             0
                                                1 2015    data from FEA and CBP were used to construct this table.
                                                2 The    quotient of No. of Entities and total domestic manufacturers and importers recorded in the industry (1,054) in 2015.


                                               Based on its analysis, USDA                                                 for tall wood buildings, research on                             612), AMS is required to examine the
                                             determined the following: Exemption                                           wood standards, and an education                                 impact of this final rule on small
                                             thresholds of 10 to 15 mmbf would                                             program for architects and engineers on                          entities as defined by the Small
                                             exempt 10 to 13 percent of the total                                          building with wood. An independent                               Business Administration (SBA). The
                                             volume of softwood lumber (taking into                                        evaluation completed in 2016                                     classification of a business as small, as
                                             account both the de minimis and equity                                        concluded that activities of the Board                           defined by the SBA, varies by industry.
                                             exemptions). This is close to the range                                       increased sales of softwood lumber                               If a business is defined as ‘‘small’’ by
                                             exempt under other research and                                               between 2011 and 2015 by 1.683 bbf or                            SBA size standards, then it is ‘‘eligible
                                             promotion programs. While all of the                                          $596 million. This equates to a return                           for government programs and
                                             exemption thresholds analyzed would                                           on investment of $15.55 of additional                            preferences reserved for ‘small business’
                                             generate sufficient revenue for a viable                                      sales for every $1 spent on promotion by                         concerns.’’ 6 Accordingly, AMS has
                                             program, the additional revenue that                                          the Board.4                                                      considered the economic impact of this
                                             could be collected if the de minimis                                            Therefore, when considering all of the                         action on such entities.
                                             level were reduced much lower than 15                                         factors collectively, USDA concludes                                The purpose of the RFA is to fit
                                             mmbf would likely not be worth the                                            that 15 mmbf is a reasonable and most                            regulatory actions to the scale of
                                             additional costs. At this threshold, free                                     appropriate de minimis quantity under                            businesses subject to such actions so
                                             rider implications would be minimal                                           part 1217.5 Accordingly, this rule                               that small businesses will not be
                                             because only 4 percent of the volume of                                       establishes the de minimis quantity                              disproportionately burdened. The SBA
                                             softwood lumber would be exempted as                                          threshold under part 1217 at 15 mmbf.                            defines, in 13 CFR part 121, small
                                             de minimis. Applying both the de                                              Thus, no amendment to part 1217 is                               agricultural producers as those having
                                             minimis and equity exemptions at 15                                           necessary.                                                       annual receipts of no more than
                                             mmbf would allow the program to                                               Final Regulatory Flexibility Act                                 $750,000 and small agricultural service
                                             assess almost 90 percent of the total                                         Analysis                                                         firms (domestic manufacturers and
                                             volume of softwood lumber.                                                                                                                     importers) as those having annual
                                                                                                                             In accordance with the Regulatory                              receipts of no more than $7.5 million.7
                                               Further, the program functioned                                             Flexibility Act (RFA) (5 U.S.C. 601–
                                             successfully in 2015 with assessment
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                                                                                                                                                                                              6 https://www.sba.gov/contracting/getting-started-
                                             revenue of $12.905 million with de                                               4 Prime Consulting, Softwood Lumber Board,                    contractor/make-sure-you-meet-sba-size-standards/
                                             minimis and equity exemptions of 15                                           Comprehensive Program ROI, 2012–2015, February                   small-business-size-regulations.
                                             mmbf. The Board has conducted                                                 2016.                                                              7 SBA does have a small business size standard
                                                                                                                             5 As stated previously, the de minimis level and               for ‘‘Sawmills’’ of 500 employees (see https://
                                             activities at this level of funding that                                      the equity exemption are purposefully aligned, and               www.sba.gov/sites/default/files/files/Size_
                                             have helped build demand for softwood                                         therefore this conclusion accounts for the equity                Standards_Table.pdf). Based on USDA’s
                                             lumber, including a prize competition                                         exemption at 15 mmbf.                                            understanding of the lumber industry, using this



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                                                              Federal Register / Vol. 82, No. 206 / Thursday, October 26, 2017 / Rules and Regulations                                      49489

                                                Using an average price of $330 per                   equal to the RFA-small business                       a threshold of 10 mmbf, a total of 37.183
                                             thousand board feet,8 a domestic                        definition of 23 mmbf, would only pay                 bbf would be assessed, with 1.236 bbf,
                                             manufacturer or importer who ships less                 assessments on no more than 8 mmbf of                 or 3 percent, exempt as de minimis,
                                             than about 23 mmbf per year would be                    softwood lumber.                                      plus an additional 2.83 bbf exempt as
                                             considered a small entity for purposes                     To calculate the impact of the                     equity for 10 percent total volume
                                             of the RFA. As shown in Table 4, there                  assessment rate on the revenue of an                  exempt; and with no exemptions, a total
                                             were 1,054 domestic manufacturers and                   assessment payer, the assessment rate is              of 41.249 bbf would be assessed. In
                                             importers of softwood lumber based on                   divided by an average price. Using an                 reviewing the total volume exempt
                                             2015 data. Of these, 864 entities shipped               average 2015 price of $330 per thousand               under the softwood lumber program
                                             or imported less than 23 mmbf and                       board feet, the assessment rate as a                  (taking into account both the de
                                             would be considered to be small entities                percentage of price could range from                  minimis and equity exemptions),
                                             under the SBA definition. Thus, based                   0.106 percent at the current assessment               thresholds of 10 to 15 mmbf exempt
                                             on the $7.5 million threshold, the                      rate to 0.151 percent at the maximum                  between 10 and 13 percent of the
                                             majority of domestic manufacturers and                  assessment rate. This analysis helps                  volume, which is close to the range
                                             importers of softwood lumber would be                   identify the impact of the assessment                 exempt under other programs.
                                             considered small entities for purposes of               rate on the revenues of assessment                       In reviewing available funding to
                                             the RFA.                                                payers. At the current assessment rate of             support a viable program at the
                                                This action establishes a de minimis                 $0.35 per thousand board feet to the                  alternative exemption thresholds, at an
                                             quantity exemption threshold under                      maximum assessment rate of $0.50 per                  exemption threshold of 30 mmbf,
                                             part 1217. Part 1217 is administered by                 thousand board feet, assessment payers                estimated assessment revenue is
                                             the Board with oversight by USDA. In                    would owe between 0.106 percent and                   $11.482 million; at 25 mmbf, estimated
                                             response to a federal district court                    0.151 percent of their revenues,                      assessment revenue is $11.793 million
                                             decision in Resolute, USDA conducted                    respectively.                                         (an additional $311,243); at a threshold
                                             a new analysis to determine a                              In its analysis of alternatives, USDA              of 20 mmbf, estimated assessment
                                             reasonable and appropriate de minimis                   evaluated five different exemption                    revenue is $12.141 million (an
                                             threshold. Based on this analysis, this                 thresholds—30, 25, 20, 15 and 10 mmbf                 additional $348,408); at a threshold of
                                             final rule establishes the de minimis                   using 2015 data—accounting for both                   15 mmbf, estimated assessment revenue
                                             quantity threshold at 15 mmbf and                       the de minimis and equity exemptions,                 is $12.549 million (an additional
                                             entities manufacturing (and                             as well as having no exemptions under                 $407,444); at a threshold of 10 mmbf,
                                             domestically shipping) or importing less                the program. USDA evaluated these                     estimated assessment revenue is
                                             than 15 mmbf per year would be exempt                   alternatives based on the following                   $13.014 million (an additional
                                             from paying assessments under part                      factors: an estimate of quantity of                   $465,267); and with no exemptions,
                                             1217. Authority for this action is                      softwood lumber covered under the                     estimated assessment revenue is
                                             provided in sections 516(a)(2), 516(g)                  program (quantity assessed and quantity               $14.437 million (an additional $1.423
                                             and 525 of the 1996 Act.                                exempted); available funding to support               million).
                                                Regarding the economic impact of the                 a viable program; free rider                             Assessment revenue under the current
                                             de minimis exemption, the exemption                     implications; and the impact of program               softwood lumber program has ranged
                                             allows the Board to exempt from                         requirements on entities (above and                   from about $10.638 million in 2012 to
                                             assessment small entities that would be                 below a de minimis threshold). USDA                   $12.905 million in 2015. At this level of
                                             unduly burdened by the program’s                        conducted a balancing test among these                revenue, the current program has seen
                                             obligations. At the 15 mmbf exemption                   factors to assess whether one exemption               success. The revenues reviewed at the
                                             threshold, small manufacturers and                      threshold works better than another                   different exemption thresholds are
                                             importers that domestically ship or                     when the factors are considered                       comparable to these levels or higher.
                                             import less than 15 mmbf of softwood                    collectively.                                         Thus, all of the exemption thresholds
                                             lumber will not have to pay assessments                    In reviewing the quantity of                       analyzed would generate sufficient
                                             under the program.                                      assessable versus exempt softwood                     revenue for a viable program.
                                                Additionally, larger manufacturers                   lumber at the alternative exemption                      Regarding free riders, USDA notes
                                             and importers will not have to pay                      thresholds, USDA found that at an                     that the key to assessing the free rider
                                             assessments on the first 15 mmbf of                     exemption threshold of 30 mmbf, a total               implications of a de minimis quantity is
                                             softwood lumber domestically shipped                    of 32.805 bbf would be assessed with                  not the number of entities exempt under
                                             or imported each year. This exemption                   3.284 bbf, or 8 percent, exempt as de                 a program but rather the volume of
                                             is intended for the purpose of equity,                  minimis, plus an additional 5.16 bbf                  product exempt. This is because
                                             whereby all entities who must pay                       exempt as equity for 20 percent of total              assessments are based on volume
                                             assessments may reduce their assessable                 volume exempt; at 25 mmbf, a total of                 shipped or imported and not on the
                                             volume by 15 mmbf. This exemption                       33.694 bbf would be assessed with 2.93                number of entities; assessments are not
                                             benefits smaller manufacturers and                      bbf, or 7 percent, exempt as de minimis,              paid by entities on a pro rata basis. In
                                             importers whose annual shipments or                     plus an additional 4.625 bbf exempt as                evaluating free rider implications at the
                                             imports are above the de minimis                        equity for 18 percent total volume                    alternative exemption thresholds, at an
                                             threshold of 15 mmbf. With this                         exempt; at a threshold of 20 mmbf, a                  exemption threshold of 30 mmbf, 84
                                             exemption, an entity that ships or                      total of 34.69 bbf would be assessed                  percent of the number of entities (or
                                             imports a quantity of softwood lumber                   with 2.259 bbf, or 5 percent, exempt as               882) would be exempt but only 8
                                                                                                     de minimis, plus an additional 4.3 bbf                percent of the volume would be exempt
                                                                                                     exempt as equity for 16 percent total                 as de minimis; at a threshold of 25
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                                             criteria would be impractical as sawmills often use
                                             contractors rather than employees to operate and,       volume exempt; at a threshold of 15                   mmbf, 82 percent of the number of
                                             therefore, many mills would fall under this criteria    mmbf, a total of 35.854 bbf would be                  entities (or 869) would be exempt, but
                                             while being, in reality, a large business. Therefore,   assessed with 1.57 bbf, or 4 percent,                 only 7 percent of the volume would be
                                             USDA used agricultural service firm as a more
                                             appropriate criteria for this analysis.                 exempt as de minimis, plus an                         exempt as de minimis; at a threshold of
                                               8 Random Lengths Publications, Inc.;                  additional 3.825 bbf exempt as equity                 20 mmbf, 80 percent of the number of
                                             www.randomlengths.com.                                  for 13 percent total volume exempt; at                entities (or 839) would be exempt, but


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                                             49490            Federal Register / Vol. 82, No. 206 / Thursday, October 26, 2017 / Rules and Regulations

                                             only 5 percent of the volume would be                   14.3 mmbf.9 This level is close to 15                   provide documentation as appropriate
                                             exempt as de minimis; at a threshold of                 mmbf. By this analysis, the selection of                to support their request. The reporting
                                             15 mmbf, 76 percent of the number of                    15 mmbf as the de minimis quantity is                   burden for this collection of information
                                             entities (or 799) would be exempt, but                  reasonable.                                             is estimated to average 0.25 hours per
                                             only 4 percent of the volume would be                      Analysis of the 23 mmbf–RFA small                    domestic manufacturer or importer per
                                             exempt as de minimis; and at a                          business threshold as a reasonable                      report, or 0.25 hours per year (1 request
                                             threshold of 10 mmbf, 73 percent of the                 option for de minimis shows that 190                    per year per exempt entity). This
                                             number of entities (or 771) would be                    entities would be subject to assessment                 computes to a total annual burden of
                                             exempt, but only 3 percent of the                       and 864 entities would be exempt. In                    199.75 hours (0.25 hours times 799
                                             volume would be exempt as de minimis.                   terms of volume, 38.44 bbf would be                     exempt entities at the 15 mmbf de
                                                                                                     assessed, or 93 percent of total volume,                minimis exemption threshold from
                                                In evaluating the impact of the                      and 2.809 bbf would be exempt, or 7                     Table 4).
                                             program’s requirements at the                           percent of total volume.                                   Further, pursuant to § 1217.70,
                                             alternative exemption thresholds,                          Based upon the analysis contained                    domestic manufacturers and importers
                                             entities that ship or import at or above                herein, any of the exemption thresholds                 that ship or import at or over the de
                                             the de minimis threshold must pay                       reviewed would be reasonable because                    minimis exemption level and pay their
                                             assessments to the Board. Assessment                    they would exempt from 3 to 8 percent                   assessments directly to the Board must
                                             payers must also submit a report to the                 of the volume of softwood lumber as de                  submit a shipment/import report for
                                             Board each quarter of the volume of                     minimis. However, when the total                        each quarter when assessments are due.
                                             softwood lumber shipped or imported                     volume exempt under the softwood                        The reporting burden for this collection
                                             for the respective quarter. Entities that               lumber program is considered (taking                    of information is estimated to average
                                             ship or import below the de minimis                     into account both the de minimis and                    0.5 hours per domestic manufacturer or
                                             threshold must apply to the Board each                  equity exemptions), thresholds of 10 to                 importer per report, or 2 hours per year
                                             year for a certificate of exemption and                 15 mmbf exempt between 10 and 13                        (4 reports per year times 0.5 hours per
                                             provide documentation as appropriate                    percent of the volume, which is close to                report). This computes to a total annual
                                             to support their request. The reporting                 the range exempt under other programs.                  burden of 510 hours (255 assessed
                                             and recordkeeping requirements are                      While all of the exemption thresholds                   entities (from Table 4—No. of Assessed
                                             detailed in the section below titled                    analyzed would generate sufficient                      Entities at 15 mmbf) at 2 hours each
                                             Paperwork Reduction Act.                                revenue for a viable program, the                       equals 510 hours).
                                                                                                     additional revenue that could be                           All domestic manufacturers and
                                                At an exemption threshold of 30                                                                              importers must also maintain records
                                             mmbf, 172 entities would pay                            collected if the de minimis level were
                                                                                                     reduced much lower than 15 mmbf                         sufficient to verify their reports. The
                                             assessments and 882 would be exempt;                                                                            recordkeeping burden for keeping this
                                             at 25 mmbf, 185 entities would pay                      would likely not be worth the additional
                                                                                                     costs. The softwood lumber program                      information is estimated to average 0.5
                                             assessments and 869 would be exempt;                                                                            hours per record keeper maintaining
                                             at 20 mmbf, 215 entities would pay                      operated successfully since its inception
                                                                                                     at an exemption threshold of 15 mmbf.10                 such records, or 527 hours (1,054 total
                                             assessments and 839 would be exempt;                                                                            entities assessed (from Table 4—No. of
                                             at 15 mmbf, 255 entities would pay                      Paperwork Reduction Act                                 Assessed Entities at no exemption)
                                             assessments and 799 would be exempt;                      In accordance with the Paperwork                      times 0.5 hours).
                                             at 10 mmbf, 283 entities would pay                      Reduction Act of 1995 (44 U.S.C.                           As with all Federal promotion
                                             assessments and 771 would be exempt.                    Chapter 35), the information collection                 programs, reports and forms are
                                             Thus, as the exemption threshold is                     and recordkeeping requirements                          periodically reviewed to reduce
                                             reduced, more entities would be subject                 imposed by part 1217 have been                          information requirements and
                                             to the assessment and quarterly                         approved previously under OMB                           duplication by industry and public
                                             reporting obligation under part 1217.                   control number 0581–0093. This rule                     sector agencies. Finally, USDA has not
                                                Further, in considering program                      imposes no additional reporting and                     identified any relevant Federal rules
                                             compliance costs, USDA estimates the                    recordkeeping burden on domestic                        that duplicate, overlap, or conflict with
                                             cost of an on-site audit of a single entity             manufacturer and importers of softwood                  this rule.
                                             at $5,000 or more. Thus, the cost to                    lumber. The reporting requirements                         USDA is committed to complying
                                                                                                     pertaining to this rule are described in                with the E-Government Act, to promote
                                             pursue a compliance case against an
                                                                                                     the following paragraphs.                               the use of the internet and other
                                             entity that shipped less than 10 mmbf,
                                                                                                       As previously mentioned, pursuant to                  information technologies to provide
                                             9 mmbf for example, would outweigh
                                                                                                     § 1217.53(a), domestic manufacturers                    increased opportunities for citizen
                                             the revenue that would be collected
                                                                                                     and importers who domestically ship or                  access to Government information and
                                             from that entity of $3,150. Similarly, the
                                                                                                     import less than the de minimis                         services, and for other purposes.
                                             assessment revenue that would be                                                                                   Regarding outreach efforts, USDA
                                             collected from an entity that shipped                   threshold must apply to the Board each
                                                                                                     year for a certificate of exemption and                 initiated this action in response to a
                                             less than 15 mmbf, 12 mmbf for                                                                                  May 2016 federal court decision in
                                             example, would amount to $4,200. The                       9 This figure is computed by dividing the            Resolute. This rule establishes the de
                                             benefit of assessing smaller                            estimated cost to pursue a compliance case against      minimis quantity exemption under part
                                             manufacturers, $3,150 at 9 mmbf and                     an entity of $5,000 by the assessment rate of $0.35     1217.
                                             $4,200 at 12 mmbf, does not outweigh                    per thousand board feet.                                   A proposed rule concerning this
                                             the cost of pursuing compliance cases                      10 An independent evaluation of the softwood
                                                                                                                                                             action was published in the Federal
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                                             against them at $5,000 per entity. The                  lumber program showed that the activities of the
                                                                                                     Board increased sales of softwood lumber between        Register on May 30, 2017 (82 FR 24583).
                                             point at which the assessment revenue                   2011 and 2015 by 1.683 bbf or $596 million. This        The Board distributed copies of the
                                             that would be collected from an entity                  equates to a return on investment of $15.55 of          proposed rule via email to domestic
                                             outweighs the estimated cost of $5,000                  additional sales for every $1 spent on promotion by
                                                                                                     the Board. By this metric, part 1217 to date has been
                                                                                                                                                             manufacturers and importers. The
                                             to pursue a compliance case is an entity                effective. USDA therefore finds that 15 mmbf is a       proposal was also made available
                                             with volume equal to or greater than                    reasonable exemption level for de minimis.              through the internet by USDA and the


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                                                              Federal Register / Vol. 82, No. 206 / Thursday, October 26, 2017 / Rules and Regulations                                               49491

                                             Office of the Federal Register. A 60-day                analyzed, the 10 and 15 mmbf                          have to pay assessments on their first 15
                                             comment period ending July 31, 2017,                    thresholds came closest to this range.                mmbf shipped. Without the equity
                                             was provided to allow interested                        The commenter stated that USDA also                   exemption, assessment payers would
                                             persons to submit comments.                             compared the benefits derived from                    pay more, thereby increasing the free
                                                                                                     these thresholds with the likely                      rider impact.11
                                             Analysis of Comments                                                                                             Two commenters discussed the efforts
                                                                                                     compliance costs incurred, which
                                                Thirty-three comments were received                  USDA estimated at $5,000 per entity.                  of the Blue Ribbon Commission (BRC),
                                             in response to the proposed rule. Of                    The point at which revenues collected                 the proponent group, in promulgating
                                             those 33 comments, one was outside the                  from entities that would fall below the               the program. They stated that the BRC
                                             scope of the rulemaking and the                         compliance cost was found to be at 14.3               surveyed the industry on issues related
                                             remaining 32 supported the 15 mmbf                      mmbf, which is closest to the 15 mmbf                 to the program, including the de
                                             exemption threshold. The following is                   threshold. The combination of these                   minimis exemption threshold. They
                                             an analysis of those 32 comments.                       results led USDA to conclude that 15                  stated that the BRC sought a level that
                                                Several commenters reiterated the                    mmbf is the most appropriate                          would generate maximum revenue for
                                             data presented in the proposed rule.                    benchmark between volumes assessed                    the program while being mindful of the
                                             They cited Table 3 which shows that, at                 and not assessed. The commenter                       cost of administering the program and
                                             the 15 mmbf threshold, entities that pay                concluded that, ‘‘. . . while there is no             collecting assessments. The BRC’s
                                             into the program account for 96 percent                 special formula for computing a de                    survey found that 15 mmbf was the
                                             of the U.S. softwood lumber market                      minimis threshold . . . ,’’ the                       appropriate level that was broadly
                                             volume. Thus, free rider concerns are                   commenter believes that USDA selected                 accepted by the industry.
                                             minimal. Reducing the exemption level                   a reasonable exemption amount based                      Several commenters also expressed
                                             by a third (down to 10 mmbf) would                      on the industry’s structure and the                   their overall support for the softwood
                                             only increase that number to 97 percent                 program’s benefits and costs.                         lumber program. They agreed that the
                                             of the U.S. market and would not be                        Six commenters opined that the 15                  program provides a strong, unified voice
                                             worth the additional effort. There are a                mmbf threshold appropriately separates                for the industry. One commenter stated
                                             large number of small manufacturers                     the high production manufacturers from                that the program has contributed
                                             and importers who account for a small                   small entities that manufacture specialty             significantly to strengthening the
                                             percentage of the softwood lumber                       products and sell into mostly local and               position of softwood lumber in the
                                             shipped in the United States. The                       niche markets. They agreed that                       market place as well as expanding and
                                             commenters opined that the cost of                      specialty products do not benefit as                  developing new markets for softwood
                                             collecting an assessment from such a                    much from a national promotion                        lumber. The commenters also agreed
                                             large number of entities outweighs the                  program, and that growth in market                    that funding for the program has been
                                             revenue that could be collected from                    share benefits entities that manufacture              appropriate since assessment collection
                                             such a small amount of volume. They                     larger volumes to a greater degree than               began in 2012. None of the commenters
                                             agreed that Board staff time would be                   those that fall below the 15 mmbf                     supported increasing the exemption
                                             better spent on promotion activities                    threshold.                                            threshold thereby reducing funding for
                                             than trying to collect a small amount of                   Several commenters expressed                       the program.
                                             revenue from several small entities.                    concern with the administrative burden                   No changes have been made to the
                                                One commenter opined that the                        that complying with a mandatory                       proposed rule based on the comments
                                             methodology used by USDA to                             promotion program could place on                      received.
                                             determine the de minimis threshold was                  small entities below the 15 mmbf                         After consideration of all relevant
                                             comprehensive and explored tradeoffs                    threshold. One commenter stated that,                 matters presented, including the
                                             involved in setting a threshold below                   on a per board foot ratio, the costs to               available information and comments
                                             which it is counterproductive to the                    participate in the program are lower for              received, it is hereby found that this
                                             collection of assessments to further the                larger entities than smaller entities.                rule, is consistent with and will
                                             program. The commenter stated that                      Many small entities still record their                effectuate the purposes of the 1996 Act.
                                             ‘‘. . . USDA dealt with a large amount                  shipments by hand. Larger entities, on                List of Subjects in 7 CFR Part 1217
                                             of data on imports that it appropriately                the other hand, can afford to invest in
                                             scrubbed to exclude obvious errors and                  automated computer reporting systems                    Administrative practice and
                                             outliers.’’ Within the populations of                   and can have personnel dedicated to                   procedure, Advertising, Consumer
                                             domestic manufacturers and importers                    efficiently analyzing their reporting.                information, Marketing agreements,
                                             categorized based on volume, USDA                       Thus, the administrative costs for                    Promotion, Reporting and
                                             conducted a series of ‘‘what if’’ analyses              smaller entities to participate in the                recordkeeping requirements, Softwood
                                             to determine the impact of various de                   program are higher than the costs for                 lumber.
                                             minimis levels on revenue in terms of                   larger entities.                                        11 For example, as explained in the May 2017
                                             ‘‘. . . administrative costs, the                          Two commenters also referenced the                 proposed rule, if the thresholds for de minimis and
                                             compliance burden on respondents and                    part’s 8 percent cap on administrative                equity exemptions were 10 mmbf, Company A that
                                             the potential for ‘‘free rider’’ benefits.’’            expenses. They opined that the revenue                ships 8 mmbf annually would pay no assessments,
                                             The commenter also observed that                        gained from collecting assessments from               and Company B that ships 30 mmbf annually would
                                                                                                                                                           have to pay assessments on 20 mmbf of softwood
                                             USDA compared the results to other                      numerous small entities would not be                  lumber. At an assessment rate of $0.35 per thousand
                                             federal promotion programs authorized                   sufficient to justify the additional costs            board feet, this would compute to $7,000 in
                                             under the 1996 Act and overseen by                      and administrative complexities.                      assessments. Without the equity exemption,
                                             USDA where it found that 8 of 10                           Three commenters expressed support                 Company A would still pay no assessments but
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                                                                                                                                                           Company B would have to pay assessments on 30
                                             programs exempt a de minimis quantity                   for the equity exemption. They opined                 mmbf. This would compute to $10,500 in
                                             from assessment, and that half of those                 that the equity exemption makes the                   assessments, which is an additional burden of
                                             programs exempt between 3 and 11                        program fair for everyone. One                        $3,500. Thus, the equity exemption reduces the
                                                                                                     commenter opined that the equity                      burden of free riders on entities funding the
                                             percent of the total quantity covered by                                                                      program. It creates fairness because it exempts from
                                             the program as de minimis. Among the                    exemption mitigates the free rider                    assessment an equal volume from all entities,
                                             range of alternatives that USDA                         problem because larger entities do not                regardless of their size.



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                                             49492            Federal Register / Vol. 82, No. 206 / Thursday, October 26, 2017 / Rules and Regulations

                                               The authority citation for 7 CFR part                    Privacy: The FAA will post all                     recommended change, and include
                                             1217 continues to read as follows:                      comments it receives, without change,                 supporting data.
                                               Authority: 7 U.S.C. 7411–7425; 7 U.S.C.               to http://www.regulations.gov/,                         We will consider all comments we
                                             7401.                                                   including any personal information the                receive by the closing date for
                                                                                                     commenter provides. Using the search                  comments. We may change these special
                                               Dated: October 19, 2017.
                                                                                                     function of the docket Web site, anyone               conditions based on the comments we
                                             Bruce Summers,                                          can find and read the electronic form of              receive.
                                             Acting Administrator.                                   all comments received into any FAA
                                             [FR Doc. 2017–23094 Filed 10–25–17; 8:45 am]            docket, including the name of the                     Background
                                             BILLING CODE 3410–02–P                                  individual sending the comment (or                      On December 19, 2014, Boeing
                                                                                                     signing the comment for an association,               applied for a type certificate design
                                                                                                     business, labor union, etc.). DOT’s                   change to Type Certificate (TC) No.
                                             DEPARTMENT OF TRANSPORTATION                            complete Privacy Act Statement can be                 T00001SE to install high-wall suites in
                                                                                                     found in the Federal Register published               the passenger compartment of Boeing
                                             Federal Aviation Administration                         on April 11, 2000 (65 FR 19477–19478).                Model 777–300ER airplanes.
                                                                                                        Docket: Background documents or                      The Model 777 series airplane is a
                                             14 CFR Part 25                                          comments received may be read at                      swept-wing, conventional-tail, twin-
                                                                                                     http://www.regulations.gov/ at any time.              engine, turbofan- powered, transport-
                                             [Docket No. FAA–2017–0862; Special
                                             Conditions No. 25–703–SC]                               Follow the online instructions for                    category airplane. The airplane has
                                                                                                     accessing the docket or go to Docket                  seating for 365 passengers and a
                                             Special Conditions: Boeing Model 777–                   Operations in Room W12–140 of the                     maximum takeoff weight of 775,000
                                             300ER Airplanes; Passenger-Cabin                        West Building Ground Floor at 1200                    pounds.
                                             High-Wall Suites                                        New Jersey Avenue SE., Washington,                    Type Certification Basis
                                                                                                     DC, between 9 a.m. and 5 p.m., Monday
                                             AGENCY:  Federal Aviation                               through Friday, except Federal holidays.                 Under the provisions of title 14, Code
                                             Administration (FAA), DOT.                                                                                    of Federal Regulations (14 CFR) 21.101,
                                                                                                     FOR FURTHER INFORMATION CONTACT:     John             Boeing must show that the Model 777–
                                             ACTION: Final special conditions; request
                                                                                                     Shelden, Airframe and Cabin Safety                    300ER airplane, as changed, continues
                                             for comments.
                                                                                                     Section, AIR–675, Transport Standards                 to meet the applicable provisions of the
                                             SUMMARY:    These special conditions are                Branch, Policy and Innovation Division,               regulations listed in Type Certificate No.
                                             issued for Boeing Model 777–300ER                       Aircraft Certification Service, 1601 Lind             T00001SE or the applicable regulations
                                             airplanes with high-wall suites installed               Avenue SW., Renton, Washington                        in effect on the date of application for
                                             in the passenger cabin. This installation               98057–3356; telephone 425–227–2785;                   the change, except for earlier
                                             is novel or unusual, and the applicable                 facsimile 425–227–1232; email                         amendments as agreed upon by the
                                             airworthiness regulations do not contain                john.shelden@faa.gov.                                 FAA.
                                             adequate or appropriate safety standards                SUPPLEMENTARY INFORMATION:       The                     If the Administrator finds that the
                                             for this interior configuration. These                  substance of these special conditions                 applicable airworthiness regulations
                                             special conditions contain the                          has been subject to the notice and                    (i.e., 14 CFR part 25) do not contain
                                             additional safety standards that the                    comment period in several prior                       adequate or appropriate safety standards
                                             Administrator considers necessary to                    instances and has been derived without                for the Boeing Model 777–300ER
                                             establish a level of safety equivalent to               substantive change from those                         airplane because of a novel or unusual
                                             that established by the existing                        previously issued. It is unlikely that                design feature, special conditions are
                                             airworthiness standards.                                prior public comment would result in a                prescribed under the provisions of
                                             DATES: This action is effective on Boeing               significant change from the substance                 § 21.16.
                                             on October 26, 2017. Send your                          contained herein. Therefore, because a                   Special conditions are initially
                                             comments by December 11, 2017.                          delay would significantly affect the                  applicable to the model for which they
                                             ADDRESSES: Send comments identified                     certification of the airplane, the FAA                are issued. Should the type certificate
                                             by docket number FAA–2017–0862                          has determined that prior public notice               for that model be amended later to
                                             using any of the following methods:                     and comment are unnecessary and                       include any other model that
                                                D Federal eRegulations Portal: Go to                 impracticable.                                        incorporates the same novel or unusual
                                             http://www.regulations.gov/ and follow                     In addition, since the substance of                design feature, or should any other
                                             the online instructions for sending your                these special conditions has been                     model already included on the same
                                             comments electronically.                                subject to the public comment process                 type certificate be modified to
                                                D Mail: Send comments to Docket                      in several prior instances with no                    incorporate the same novel or unusual
                                             Operations, M–30, U.S. Department of                    substantive comments received, the                    design feature, these special conditions
                                             Transportation (DOT), 1200 New Jersey                   FAA finds it unnecessary to delay the                 would also apply to the other model
                                             Avenue SE., Room W12–140, West                          effective date and finds that good cause              under § 21.101.
                                             Building Ground Floor, Washington, DC                   exists for adopting these special                        In addition to the applicable
                                             20590–0001.                                             conditions upon publication in the                    airworthiness regulations and special
                                                D Hand Delivery or Courier: Take                     Federal Register.                                     conditions, the Boeing Model 777–
                                             comments to Docket Operations in                                                                              300ER airplane must comply with the
                                                                                                     Comments Invited
                                             Room W12–140 of the West Building                                                                             fuel-vent and exhaust-emission
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                                             Ground Floor at 1200 New Jersey                           We invite interested people to take                 requirements of 14 CFR part 34, and the
                                             Avenue SE., Washington, DC, between 9                   part in this rulemaking by sending                    noise-certification requirements of 14
                                             a.m. and 5 p.m., Monday through                         written comments, data, or views. The                 CFR part 36.
                                             Friday, except Federal holidays.                        most helpful comments reference a                        The FAA issues special conditions, as
                                                D Fax: Fax comments to Docket                        specific portion of the special                       defined in 14 CFR 11.19, in accordance
                                             Operations at 202–493–2251.                             conditions, explain the reason for any                with § 11.38, and they become part of


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Document Created: 2018-10-25 10:13:01
Document Modified: 2018-10-25 10:13:01
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
ActionFinal rule.
DatesEffective Date: November 27, 2017.
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 Citation82 FR 49485 
CFR AssociatedAdministrative Practice and Procedure; Advertising; Consumer Information; Marketing Agreements; Promotion; Reporting and Recordkeeping Requirements and Softwood Lumber

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