83_FR_49690 83 FR 49499 - Oranges, Grapefruit, Tangerines, and Pummelos Grown in Florida; Decreased Assessment Rate

83 FR 49499 - Oranges, Grapefruit, Tangerines, and Pummelos Grown in Florida; Decreased Assessment Rate

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 83, Issue 191 (October 2, 2018)

Page Range49499-49501
FR Document2018-21424

This proposed rule would implement a recommendation from the Citrus Administrative Committee (Committee) to decrease the assessment rate established for the 2018-19 and subsequent fiscal periods. The assessment rate would remain in effect indefinitely unless modified, suspended, or terminated.

Federal Register, Volume 83 Issue 191 (Tuesday, October 2, 2018)
[Federal Register Volume 83, Number 191 (Tuesday, October 2, 2018)]
[Proposed Rules]
[Pages 49499-49501]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-21424]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 905

[Doc. No. AMS-SC-18-0065; SC18-905-4 PR]


Oranges, Grapefruit, Tangerines, and Pummelos Grown in Florida; 
Decreased Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would implement a recommendation from the 
Citrus Administrative Committee (Committee) to decrease the assessment 
rate established for the 2018-19 and subsequent fiscal periods. The 
assessment rate would remain in effect indefinitely unless modified, 
suspended, or terminated.

DATES: Comments must be received by November 1, 2018.

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

FOR FURTHER INFORMATION CONTACT: Abigail Campos, Marketing Specialist, 
or Christian D. Nissen, Regional Director, Southeast Marketing Field 
Office, Marketing Order and Agreement Division, Specialty Crops 
Program, AMS, USDA; Telephone: (863) 324-3375, Fax: (863) 291-8614, or 
Email: [email protected] or [email protected].
    Small businesses may request information on complying with this 
regulation by contacting Richard Lower, Marketing Order and Agreement 
Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue 
SW, STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-2491, 
Fax: (202) 720-8938, or Email: [email protected].

SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553, 
proposes an amendment to regulations issued to carry out a marketing 
order as defined in 7 CFR 900.2(j). This proposed rule is issued under 
Marketing Agreement and Order No. 905, as amended (7 CFR part 905), 
regulating the handling of oranges, grapefruit, tangerines, and 
pummelos grown in Florida. Part 905 (referred to as ``the Order'') is 
effective under the Agricultural Marketing Agreement Act of 1937, as 
amended (7 U.S.C. 601-674), hereinafter referred to as the ``Act.'' The 
Committee locally administers the Order and is comprised of growers and 
handlers operating within the area of production, and a public member.
    The Department of Agriculture (USDA) is issuing this proposed rule 
in conformance with Executive Orders 13563 and 13175. This proposed 
rule falls within a category of regulatory actions that the Office of 
Management and Budget (OMB) exempted from Executive Order 12866 review. 
Additionally, because this proposed 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'[thinsp]'' (February 2, 2017).
    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. Under the Order now in effect, Florida citrus 
handlers are subject to assessments. Funds to administer the Order are 
derived from such assessments. It is intended that the assessment rate 
would be applicable to all assessable citrus for the 2018-19 crop year, 
and continue until amended, suspended, or terminated.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under section 608c(15)(A) of the 
Act, any handler subject to an order may file with USDA a petition 
stating that the order, any provision of the order, or any obligation 
imposed in connection with the order is not in accordance with law and 
request a modification of the order or to be exempted therefrom. Such 
handler is afforded the opportunity for a hearing on the petition. 
After the hearing, USDA would rule on the petition. The Act provides 
that the district court of the United States in any district in which 
the handler is an inhabitant, or has his or her principal place of 
business, has jurisdiction to review USDA's ruling on the petition, 
provided an action is filed not later than 20 days after the date of 
the entry of the ruling.
    The Order provides authority for the Committee, with the approval 
of USDA, to formulate an annual budget of expenses and collect 
assessments from handlers to administer the program. The members are 
familiar with the Committee's needs and with the costs of goods and 
services in their local area and are thus in a position to formulate an 
appropriate budget and assessment rate. The assessment rate is 
formulated and discussed in a public meeting. Thus, all directly 
affected persons have an opportunity to participate and provide input.

[[Page 49500]]

    This proposed rule would decrease the assessment rate from $0.02, 
the rate that was established for the 2017-18 and subsequent fiscal 
periods, to $0.015 per 4/5-bushel cartons of citrus for the 2018-19 and 
subsequent fiscal periods. Shipments from last season exceeded initial 
projections after Hurricane Irma, allowing the Committee to maintain 
their financial reserve. As the industry continues to recover from 
Hurricane Irma, the Committee estimates that the 2018-19 Florida citrus 
crop will be around 8,250,000 regulated cartons, an increase of nearly 
one million cartons from last season. The anticipated increase in 
production prompted the Committee to recommend the reduction in the 
assessment rate.
    The Committee met on July 17, 2018, and unanimously recommended 
2018-19 expenditures of $130,260 and an assessment rate of $0.015 per 
4/5-bushel cartons of citrus. The major expenditures recommended by the 
Committee for the 2018-19 year include $113,260 for management, $9,000 
for auditing, and $4,000 for travel. Budgeted expenses for these items 
in 2017-18 were $75,000, $9,000, and $4,200, respectively.
    The assessment rate recommended by the Committee was derived by 
considering anticipated expenses, expected shipments of 8.25 million 4/
5-bushel cartons, and the amount of funds available in the authorized 
reserve. Income derived from handler assessments calculated at $123,750 
(8.25 million x $0.015), along with interest income and funds from the 
Committee's authorized reserve, would be adequate to cover budgeted 
expenses of $130,260. Funds in the reserve are estimated to be at 
$147,500 and would be kept within the maximum permitted by the Order. 
As stated in Sec.  [thinsp]905.42, the amount of the reserve is not to 
exceed two fiscal periods' expenses.
    The assessment rate proposed in this rule would continue in effect 
indefinitely unless modified, suspended, or terminated by USDA based 
upon recommendation and information submitted by the Committee or other 
available information.
    Although the proposed assessment rate would be effective for an 
indefinite period, the Committee will continue to meet prior to or 
during each fiscal period to recommend a budget of expenses and 
consider recommendations for modification of the assessment rate. The 
dates and times of Committee meetings are available from the Committee 
or USDA. Committee meetings are open to the public and interested 
persons may express their views at these meetings. USDA would evaluate 
Committee recommendations and other available information to determine 
whether modification of the assessment rate is needed. Further 
rulemaking would be undertaken as necessary. The Committee's 2018-19 
budget and those for subsequent fiscal periods will be reviewed and, as 
appropriate, approved by USDA.

Initial Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS) 
has considered the economic impact of this proposed rule on small 
entities. Accordingly, AMS has prepared this initial regulatory 
flexibility analysis. The purpose of the RFA is to fit regulatory 
actions to the scale of businesses subject to such actions in order 
that small businesses will not be unduly or disproportionately 
burdened. Marketing orders issued pursuant to the Act are unique in 
that they are brought about through group action of essentially small 
entities acting on their own behalf.
    There are approximately 500 producers of Florida citrus in the 
production area and approximately 20 handlers subject to regulation 
under the Order. Small agricultural producers are defined by the Small 
Business Administration (SBA) as those having annual receipts less than 
$750,000, and small agricultural service firms are defined as those 
whose annual receipts are less than $7,500,000 (13 CFR 121.201).
    According to data from the National Agricultural Statistics Service 
(NASS), the industry, and the Committee, the weighted average f.o.b. 
price for Florida citrus for the 2016-17 season was approximately 
$15.20 per carton with total shipments of around 12.6 million cartons. 
Using the number of handlers, and assuming a normal distribution, the 
majority of handlers have average annual receipts of more than 
$7,500,000 ($15.20 times 12.6 million equals $191,520,000 divided by 20 
handlers equals $9,576,000 per handler).
    In addition, based on the NASS data, the weighted average grower 
price for the 2016-17 season was around $8.30 per carton of citrus. 
Based on grower price, shipment data, and the total number of Florida 
citrus growers, and assuming a normal distribution, the average annual 
grower revenue is below $750,000 ($8.30 times 12.6 million cartons 
equals $104,580,000 divided by 500 growers equals $209,160 per grower). 
Thus, the majority of Florida citrus handlers may be classified as 
large entities, while the majority of growers may be classified as 
small entities.
    This proposal would decrease the assessment rate collected from 
handlers for the 2018-19 and subsequent fiscal periods from $0.02 to 
$0.015 per 4/5-bushel cartons of citrus. The Committee unanimously 
recommended 2018-19 expenditures of $130,260 and an assessment rate of 
$0.015 per 4/5-bushel cartons. The proposed assessment rate of $0.015 
is $0.005 lower than the 2017-18 rate. The quantity of assessable 
citrus for the 2018-19 fiscal period is estimated at 8.25 million 4/5-
bushel cartons. Thus, the $0.015 rate should provide $123,750 in 
assessment income (8.25 million x $0.015). Income derived from handler 
assessments, along with interest income and funds from the Committee's 
authorized reserve (currently $147,500), would be adequate to cover 
budgeted expenses.
    The major expenditures recommended by the Committee for the 2018-19 
fiscal year include $113,260 for management, $9,000 for auditing, and 
$4,000 for travel. Budgeted expenses for these items in 2017-18 were 
$75,000, $9,000, and $4,200, respectively.
    Shipments from last season exceeded initial projections after 
Hurricane Irma, allowing the Committee to maintain its financial 
reserve. The Committee estimates the 2018-19 Florida citrus crop will 
be around 8,250,000 regulated cartons, an increase of nearly one 
million cartons from last season. The Committee recommended the 
reduction in the assessment rate based on the anticipated increase in 
production.
    Prior to arriving at this budget and assessment rate, the Committee 
considered information from the Executive Committee. Alternative 
expenditure levels and assessment rates were discussed by the Executive 
Committee, based upon the relative value of various activities to the 
citrus industry. The Committee determined that all program activities 
were adequately funded and essential to the functionality of the Order, 
thus no alternate expenditure levels were deemed appropriate.
    Based on these discussions and estimated shipments, the recommended 
assessment rate of $0.015 would provide $123,750 in assessment income. 
The Committee determined that assessment revenue, along with funds from 
reserves and interest income, would be adequate to cover budgeted 
expenses for the 2018-19 fiscal period.
    A review of historical information and preliminary information 
pertaining to the upcoming fiscal period indicates

[[Page 49501]]

that the average grower price for the 2018-19 season should be 
approximately $8.30 per 4/5-bushel cartons of citrus. Therefore, the 
estimated assessment revenue for the 2018-19 crop year as a percentage 
of total grower revenue would be about 0.2 percent.
    This proposed rule would decrease the assessment obligation imposed 
on handlers. Assessments are applied uniformly on all handlers, and 
some of the costs may be passed on to producers. However, decreasing 
the assessment rate reduces the burden on handlers and may also reduce 
the burden on producers.
    The Committee's meeting was widely publicized throughout the 
Florida citrus industry. All interested persons were invited to attend 
the meeting and participate in Committee deliberations on all issues. 
Like all Committee meetings, the July 17, 2018, meeting was a public 
meeting and all entities, both large and small, were able to express 
views on this issue. Interested persons are invited to submit comments 
on this proposed rule, including the regulatory and information 
collection impacts of this action on small businesses.
    Based on its evaluation of the Committee recommendation and other 
available information, USDA has determined that a modification of the 
assessment rate for the 2018-19 Florida citrus fiscal period would be 
appropriate. Therefore, USDA issues this proposed rule.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the Order's information collection requirements have been 
previously approved by the OMB and assigned OMB No. 0581-0189, Fruit 
Crops. No changes in those requirements would be necessary as a result 
of this proposed rule. Should any changes become necessary, they would 
be submitted to OMB for approval.
    This proposed rule would not impose any additional reporting or 
recordkeeping requirements on either small or large Florida citrus 
handlers. As with all Federal marketing order programs, reports and 
forms are periodically reviewed to reduce information requirements and 
duplication by industry and public sector agencies.
    AMS is committed to complying with the E-Government Act, to promote 
the use of the internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.
    USDA has not identified any relevant Federal rules that duplicate, 
overlap, or conflict with this proposed rule.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at: http://www.ams.usda.gov/rules-regulations/moa/small-businesses. Any questions 
about the compliance guide should be sent to Richard Lower at the 
previously mentioned address in the FOR FURTHER INFORMATION CONTACT 
section.

List of Subjects in 7 CFR Part 905

    Grapefruit, Marketing agreements, Oranges, Pummelos, Reporting and 
recordkeeping requirements, Tangerines.

    For the reasons set forth in the preamble, 7 CFR part 905 is 
proposed to be amended as follows:

PART 905--ORANGES, GRAPEFRUIT, TANGERINES, AND PUMMELOS GROWN IN 
FLORIDA

0
1. The authority citation for 7 CFR part 905 continues to read as 
follows:

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

0
2. Section 905.235 is revised to read as follows:


Sec.  905.235  Assessment rate.

    On and after August 1, 2018, an assessment rate of $0.015 per 4/5-
bushel carton or equivalent is established for Florida citrus covered 
under the Order.

    Dated: September 27, 2018.
Bruce Summers,
Administrator, Agricultural Marketing Service.
[FR Doc. 2018-21424 Filed 10-1-18; 8:45 am]
BILLING CODE 3410-02-P



                                                                       Federal Register / Vol. 83, No. 191 / Tuesday, October 2, 2018 / Proposed Rules                                          49499

                                                AMS, USDA, 1400 Independence                            assessment rate would remain in effect                handlers operating within the area of
                                                Avenue SW, Room 2043–S, Washington,                     indefinitely unless modified,                         production, and a public member.
                                                DC 20250–3614.                                          suspended, or terminated.                                The Department of Agriculture
                                                  • Hand Delivery or Courier: Kendra                    DATES: Comments must be received by
                                                                                                                                                              (USDA) is issuing this proposed rule in
                                                Kline, AMS, USDA, 1400 Independence                     November 1, 2018.                                     conformance with Executive Orders
                                                Avenue SW, Room 2043–S, Washington,                                                                           13563 and 13175. This proposed rule
                                                                                                        ADDRESSES: Interested persons are                     falls within a category of regulatory
                                                DC 20250–3614.
                                                  • Internet: Go to http://                             invited to submit written comments                    actions that the Office of Management
                                                www.regulations.gov. Follow the on-line                 concerning this proposed rule.                        and Budget (OMB) exempted from
                                                instructions for submitting comments.                   Comments must be sent to the Docket                   Executive Order 12866 review.
                                                                                                        Clerk, Marketing Order and Agreement                  Additionally, because this proposed
                                                FOR FURTHER INFORMATION CONTACT:
                                                                                                        Division, Specialty Crops Program,                    rule does not meet the definition of a
                                                Patrick McCluskey, USDA, AMS;
                                                                                                        AMS, USDA, 1400 Independence                          significant regulatory action, it does not
                                                Telephone: (816) 659–8403; Email:
                                                                                                        Avenue SW, STOP 0237, Washington,                     trigger the requirements contained in
                                                Patrick.J.McCluskey@ams.usda.gov.
                                                                                                        DC 20250–0237; Fax: (202) 720–8938; or                Executive Order 13771. See OMB’s
                                                SUPPLEMENTARY INFORMATION: On June                      internet: http://www.regulations.gov.
                                                29, 2018, AMS published its request for                                                                       Memorandum titled ‘‘Interim Guidance
                                                                                                        Comments should reference the                         Implementing Section 2 of the Executive
                                                comments from the public in the                         document number and the date and
                                                Federal Register (83 FR 30591)                                                                                Order of January 30, 2017, titled
                                                                                                        page number of this issue of the Federal              ‘Reducing Regulation and Controlling
                                                regarding the United States (U.S.)                      Register and will be available for public             Regulatory Costs’ ’’ (February 2, 2017).
                                                Standards for Corn under the United                     inspection in the Office of the Docket                   This proposed rule has been reviewed
                                                States Grain Standards Act (USGSA) (7                   Clerk during regular business hours, or               under Executive Order 12988, Civil
                                                U.S.C. 71–87k). The comment period for                  can be viewed at: http://                             Justice Reform. Under the Order now in
                                                the request for comments ended August                   www.regulations.gov. All comments                     effect, Florida citrus handlers are
                                                28, 2018. In response to requests from                  submitted in response to this proposed                subject to assessments. Funds to
                                                interested stakeholders, AMS is                         rule will be included in the record and               administer the Order are derived from
                                                reopening the comment period an                         will be made available to the public.                 such assessments. It is intended that the
                                                additional 60-days.                                     Please be advised that the identity of the            assessment rate would be applicable to
                                                  The realignment of offices within the                 individuals or entities submitting the                all assessable citrus for the 2018–19
                                                U.S. Department of Agriculture                          comments will be made public on the                   crop year, and continue until amended,
                                                authorized by the Secretary’s                           internet at the address provided above.               suspended, or terminated.
                                                Memorandum dated November 14,                                                                                    The Act provides that administrative
                                                2017, eliminates the Grain Inspection,                  FOR FURTHER INFORMATION CONTACT:
                                                                                                        Abigail Campos, Marketing Specialist,                 proceedings must be exhausted before
                                                Packers and Stockyards Administration                                                                         parties may file suit in court. Under
                                                (GIPSA) as a standalone agency. The                     or Christian D. Nissen, Regional
                                                                                                        Director, Southeast Marketing Field                   section 608c(15)(A) of the Act, any
                                                grain inspection activities formerly part                                                                     handler subject to an order may file
                                                of GIPSA are now organized under                        Office, Marketing Order and Agreement
                                                                                                        Division, Specialty Crops Program,                    with USDA a petition stating that the
                                                AMS.                                                                                                          order, any provision of the order, or any
                                                                                                        AMS, USDA; Telephone: (863) 324–
                                                   Authority: 7 U.S.C. 71–87k.                          3375, Fax: (863) 291–8614, or Email:                  obligation imposed in connection with
                                                  Dated: September 27, 2018.                            Abigail.Campos@ams.usda.gov or                        the order is not in accordance with law
                                                                                                                                                              and request a modification of the order
                                                Greg Ibach,                                             Christian.Nissen@ams.usda.gov.
                                                                                                                                                              or to be exempted therefrom. Such
                                                Under Secretary, Marketing and Regulatory                  Small businesses may request                       handler is afforded the opportunity for
                                                Programs.                                               information on complying with this                    a hearing on the petition. After the
                                                [FR Doc. 2018–21427 Filed 10–1–18; 8:45 am]             regulation by contacting Richard Lower,               hearing, USDA would rule on the
                                                BILLING CODE 3410–02–P                                  Marketing Order and Agreement                         petition. The Act provides that the
                                                                                                        Division, Specialty Crops Program,                    district court of the United States in any
                                                                                                        AMS, USDA, 1400 Independence                          district in which the handler is an
                                                DEPARTMENT OF AGRICULTURE                               Avenue SW, STOP 0237, Washington,                     inhabitant, or has his or her principal
                                                                                                        DC 20250–0237; Telephone: (202) 720–                  place of business, has jurisdiction to
                                                Agricultural Marketing Service                          2491, Fax: (202) 720–8938, or Email:                  review USDA’s ruling on the petition,
                                                                                                        Richard.Lower@ams.usda.gov.                           provided an action is filed not later than
                                                7 CFR Part 905
                                                                                                        SUPPLEMENTARY INFORMATION: This                       20 days after the date of the entry of the
                                                [Doc. No. AMS–SC–18–0065; SC18–905–4                    action, pursuant to 5 U.S.C. 553,                     ruling.
                                                PR]                                                     proposes an amendment to regulations                     The Order provides authority for the
                                                                                                        issued to carry out a marketing order as              Committee, with the approval of USDA,
                                                Oranges, Grapefruit, Tangerines, and                    defined in 7 CFR 900.2(j). This proposed              to formulate an annual budget of
                                                Pummelos Grown in Florida;                              rule is issued under Marketing                        expenses and collect assessments from
                                                Decreased Assessment Rate                               Agreement and Order No. 905, as                       handlers to administer the program. The
                                                AGENCY:  Agricultural Marketing Service,                amended (7 CFR part 905), regulating                  members are familiar with the
                                                USDA.                                                   the handling of oranges, grapefruit,                  Committee’s needs and with the costs of
amozie on DSK3GDR082PROD with PROPOSALS1




                                                ACTION: Proposed rule.                                  tangerines, and pummelos grown in                     goods and services in their local area
                                                                                                        Florida. Part 905 (referred to as ‘‘the               and are thus in a position to formulate
                                                SUMMARY:   This proposed rule would                     Order’’) is effective under the                       an appropriate budget and assessment
                                                implement a recommendation from the                     Agricultural Marketing Agreement Act                  rate. The assessment rate is formulated
                                                Citrus Administrative Committee                         of 1937, as amended (7 U.S.C. 601–674),               and discussed in a public meeting.
                                                (Committee) to decrease the assessment                  hereinafter referred to as the ‘‘Act.’’ The           Thus, all directly affected persons have
                                                rate established for the 2018–19 and                    Committee locally administers the                     an opportunity to participate and
                                                subsequent fiscal periods. The                          Order and is comprised of growers and                 provide input.


                                           VerDate Sep<11>2014   16:46 Oct 01, 2018   Jkt 247001   PO 00000   Frm 00002   Fmt 4702   Sfmt 4702   E:\FR\FM\02OCP1.SGM   02OCP1


                                                49500                  Federal Register / Vol. 83, No. 191 / Tuesday, October 2, 2018 / Proposed Rules

                                                   This proposed rule would decrease                    express their views at these meetings.                citrus handlers may be classified as
                                                the assessment rate from $0.02, the rate                USDA would evaluate Committee                         large entities, while the majority of
                                                that was established for the 2017–18                    recommendations and other available                   growers may be classified as small
                                                and subsequent fiscal periods, to $0.015                information to determine whether                      entities.
                                                per 4/5-bushel cartons of citrus for the                modification of the assessment rate is                   This proposal would decrease the
                                                2018–19 and subsequent fiscal periods.                  needed. Further rulemaking would be                   assessment rate collected from handlers
                                                Shipments from last season exceeded                     undertaken as necessary. The                          for the 2018–19 and subsequent fiscal
                                                initial projections after Hurricane Irma,               Committee’s 2018–19 budget and those                  periods from $0.02 to $0.015 per 4/5-
                                                allowing the Committee to maintain                      for subsequent fiscal periods will be                 bushel cartons of citrus. The Committee
                                                their financial reserve. As the industry                reviewed and, as appropriate, approved                unanimously recommended 2018–19
                                                continues to recover from Hurricane                     by USDA.                                              expenditures of $130,260 and an
                                                Irma, the Committee estimates that the                                                                        assessment rate of $0.015 per 4/5-bushel
                                                                                                        Initial Regulatory Flexibility Analysis               cartons. The proposed assessment rate
                                                2018–19 Florida citrus crop will be
                                                around 8,250,000 regulated cartons, an                     Pursuant to requirements set forth in              of $0.015 is $0.005 lower than the 2017–
                                                increase of nearly one million cartons                  the Regulatory Flexibility Act (RFA) (5               18 rate. The quantity of assessable citrus
                                                from last season. The anticipated                       U.S.C. 601–612), the Agricultural                     for the 2018–19 fiscal period is
                                                increase in production prompted the                     Marketing Service (AMS) has                           estimated at 8.25 million 4/5-bushel
                                                Committee to recommend the reduction                    considered the economic impact of this                cartons. Thus, the $0.015 rate should
                                                in the assessment rate.                                 proposed rule on small entities.                      provide $123,750 in assessment income
                                                   The Committee met on July 17, 2018,                  Accordingly, AMS has prepared this                    (8.25 million × $0.015). Income derived
                                                and unanimously recommended 2018–                       initial regulatory flexibility analysis.              from handler assessments, along with
                                                19 expenditures of $130,260 and an                      The purpose of the RFA is to fit                      interest income and funds from the
                                                assessment rate of $0.015 per 4/5-bushel                regulatory actions to the scale of                    Committee’s authorized reserve
                                                cartons of citrus. The major                            businesses subject to such actions in                 (currently $147,500), would be adequate
                                                expenditures recommended by the                         order that small businesses will not be               to cover budgeted expenses.
                                                Committee for the 2018–19 year include                  unduly or disproportionately burdened.                   The major expenditures
                                                $113,260 for management, $9,000 for                     Marketing orders issued pursuant to the               recommended by the Committee for the
                                                auditing, and $4,000 for travel.                        Act are unique in that they are brought               2018–19 fiscal year include $113,260 for
                                                Budgeted expenses for these items in                    about through group action of                         management, $9,000 for auditing, and
                                                2017–18 were $75,000, $9,000, and                       essentially small entities acting on their            $4,000 for travel. Budgeted expenses for
                                                $4,200, respectively.                                   own behalf.                                           these items in 2017–18 were $75,000,
                                                   The assessment rate recommended by                      There are approximately 500                        $9,000, and $4,200, respectively.
                                                the Committee was derived by                            producers of Florida citrus in the                       Shipments from last season exceeded
                                                considering anticipated expenses,                       production area and approximately 20                  initial projections after Hurricane Irma,
                                                expected shipments of 8.25 million 4/5-                 handlers subject to regulation under the              allowing the Committee to maintain its
                                                bushel cartons, and the amount of funds                 Order. Small agricultural producers are               financial reserve. The Committee
                                                available in the authorized reserve.                    defined by the Small Business                         estimates the 2018–19 Florida citrus
                                                Income derived from handler                             Administration (SBA) as those having                  crop will be around 8,250,000 regulated
                                                assessments calculated at $123,750 (8.25                annual receipts less than $750,000, and               cartons, an increase of nearly one
                                                million × $0.015), along with interest                  small agricultural service firms are                  million cartons from last season. The
                                                income and funds from the Committee’s                   defined as those whose annual receipts                Committee recommended the reduction
                                                authorized reserve, would be adequate                   are less than $7,500,000 (13 CFR                      in the assessment rate based on the
                                                to cover budgeted expenses of $130,260.                 121.201).                                             anticipated increase in production.
                                                Funds in the reserve are estimated to be                   According to data from the National                   Prior to arriving at this budget and
                                                at $147,500 and would be kept within                    Agricultural Statistics Service (NASS),               assessment rate, the Committee
                                                the maximum permitted by the Order.                     the industry, and the Committee, the                  considered information from the
                                                As stated in § 905.42, the amount of the                weighted average f.o.b. price for Florida             Executive Committee. Alternative
                                                reserve is not to exceed two fiscal                     citrus for the 2016–17 season was                     expenditure levels and assessment rates
                                                periods’ expenses.                                      approximately $15.20 per carton with                  were discussed by the Executive
                                                   The assessment rate proposed in this                 total shipments of around 12.6 million                Committee, based upon the relative
                                                rule would continue in effect                           cartons. Using the number of handlers,                value of various activities to the citrus
                                                indefinitely unless modified,                           and assuming a normal distribution, the               industry. The Committee determined
                                                suspended, or terminated by USDA                        majority of handlers have average                     that all program activities were
                                                based upon recommendation and                           annual receipts of more than $7,500,000               adequately funded and essential to the
                                                information submitted by the                            ($15.20 times 12.6 million equals                     functionality of the Order, thus no
                                                Committee or other available                            $191,520,000 divided by 20 handlers                   alternate expenditure levels were
                                                information.                                            equals $9,576,000 per handler).                       deemed appropriate.
                                                   Although the proposed assessment                        In addition, based on the NASS data,                  Based on these discussions and
                                                rate would be effective for an indefinite               the weighted average grower price for                 estimated shipments, the recommended
                                                period, the Committee will continue to                  the 2016–17 season was around $8.30                   assessment rate of $0.015 would provide
                                                meet prior to or during each fiscal                     per carton of citrus. Based on grower                 $123,750 in assessment income. The
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                                                period to recommend a budget of                         price, shipment data, and the total                   Committee determined that assessment
                                                expenses and consider                                   number of Florida citrus growers, and                 revenue, along with funds from reserves
                                                recommendations for modification of                     assuming a normal distribution, the                   and interest income, would be adequate
                                                the assessment rate. The dates and times                average annual grower revenue is below                to cover budgeted expenses for the
                                                of Committee meetings are available                     $750,000 ($8.30 times 12.6 million                    2018–19 fiscal period.
                                                from the Committee or USDA.                             cartons equals $104,580,000 divided by                   A review of historical information and
                                                Committee meetings are open to the                      500 growers equals $209,160 per                       preliminary information pertaining to
                                                public and interested persons may                       grower). Thus, the majority of Florida                the upcoming fiscal period indicates


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                                                                       Federal Register / Vol. 83, No. 191 / Tuesday, October 2, 2018 / Proposed Rules                                         49501

                                                that the average grower price for the                      USDA has not identified any relevant               three-phase commercial air-cooled air
                                                2018–19 season should be                                Federal rules that duplicate, overlap, or             conditioners and heat pumps with a
                                                approximately $8.30 per 4/5-bushel                      conflict with this proposed rule.                     cooling capacity of less than 65,000
                                                cartons of citrus. Therefore, the                          A small business guide on complying                British thermal units per hour
                                                estimated assessment revenue for the                    with fruit, vegetable, and specialty crop             (‘‘Btu/h’’). To inform interested parties
                                                2018–19 crop year as a percentage of                    marketing agreements and orders may                   and to facilitate this process, DOE has
                                                total grower revenue would be about 0.2                 be viewed at: http://www.ams.usda.gov/                gathered data, identifying several issues
                                                percent.                                                rules-regulations/moa/small-businesses.               associated with the currently applicable
                                                   This proposed rule would decrease                    Any questions about the compliance                    test procedures on which DOE is
                                                the assessment obligation imposed on                    guide should be sent to Richard Lower                 interested in receiving comment. The
                                                handlers. Assessments are applied                       at the previously mentioned address in                issues outlined in this document mainly
                                                uniformly on all handlers, and some of                  the FOR FURTHER INFORMATION CONTACT                   concern three-phase commercial air-
                                                the costs may be passed on to                           section.                                              cooled air conditioners and heat pumps
                                                producers. However, decreasing the                                                                            with a cooling capacity of less than
                                                                                                        List of Subjects in 7 CFR Part 905
                                                assessment rate reduces the burden on                                                                         65,000 Btu/h and whether the test
                                                handlers and may also reduce the                          Grapefruit, Marketing agreements,                   procedure and certification and
                                                burden on producers.                                    Oranges, Pummelos, Reporting and                      compliance provisions for this
                                                                                                        recordkeeping requirements,                           equipment should align with those
                                                   The Committee’s meeting was widely                   Tangerines.
                                                publicized throughout the Florida citrus                                                                      provisions that apply to single-phase
                                                industry. All interested persons were                     For the reasons set forth in the                    central air conditioners and heat pumps
                                                invited to attend the meeting and                       preamble, 7 CFR part 905 is proposed to               with rated cooling capacities of less
                                                participate in Committee deliberations                  be amended as follows:                                than 65,000 Btu/h; and any additional
                                                on all issues. Like all Committee                                                                             topics that may inform DOE’s decisions
                                                                                                        PART 905—ORANGES, GRAPEFRUIT,                         in a future test procedure rulemaking,
                                                meetings, the July 17, 2018, meeting was                TANGERINES, AND PUMMELOS
                                                a public meeting and all entities, both                                                                       including methods to reduce regulatory
                                                                                                        GROWN IN FLORIDA                                      burden while ensuring the procedure’s
                                                large and small, were able to express
                                                views on this issue. Interested persons                                                                       accuracy. DOE welcomes written
                                                                                                        ■ 1. The authority citation for 7 CFR                 comments from the public on any
                                                are invited to submit comments on this                  part 905 continues to read as follows:
                                                proposed rule, including the regulatory                                                                       subject within the scope of this
                                                                                                            Authority: 7 U.S.C. 601–674.                      document (including topics not raised
                                                and information collection impacts of
                                                this action on small businesses.                        ■ 2. Section 905.235 is revised to read               in this RFI).
                                                                                                        as follows:                                           DATES: Written comments and
                                                   Based on its evaluation of the
                                                Committee recommendation and other                                                                            information are requested and will be
                                                                                                        § 905.235    Assessment rate.                         accepted on or before December 3, 2018.
                                                available information, USDA has                           On and after August 1, 2018, an
                                                determined that a modification of the                                                                         ADDRESSES: Interested persons are
                                                                                                        assessment rate of $0.015 per 4/5-bushel              encouraged to submit comments using
                                                assessment rate for the 2018–19 Florida                 carton or equivalent is established for
                                                citrus fiscal period would be                                                                                 the Federal eRulemaking Portal at
                                                                                                        Florida citrus covered under the Order.               http://www.regulations.gov. Follow the
                                                appropriate. Therefore, USDA issues
                                                this proposed rule.                                       Dated: September 27, 2018.                          instructions for submitting comments.
                                                                                                        Bruce Summers,                                        Alternatively, interested persons may
                                                   In accordance with the Paperwork
                                                                                                        Administrator, Agricultural Marketing                 submit comments, identified by docket
                                                Reduction Act of 1995 (44 U.S.C.
                                                                                                        Service.                                              number EERE–201X–BT–TP–0031, by
                                                Chapter 35), the Order’s information
                                                                                                        [FR Doc. 2018–21424 Filed 10–1–18; 8:45 am]           any of the following methods:
                                                collection requirements have been
                                                                                                                                                                 1. Federal eRulemaking Portal: http://
                                                previously approved by the OMB and                      BILLING CODE 3410–02–P
                                                                                                                                                              www.regulations.gov. Follow the
                                                assigned OMB No. 0581–0189, Fruit
                                                                                                                                                              instructions for submitting comments.
                                                Crops. No changes in those
                                                                                                                                                                 2. Email:
                                                requirements would be necessary as a                    DEPARTMENT OF ENERGY
                                                                                                                                                              AirCooledACHP2017TP0031@
                                                result of this proposed rule. Should any
                                                                                                        10 CFR Part 431                                       ee.doe.gov. Include EERE–2017–BT–
                                                changes become necessary, they would
                                                                                                                                                              TP–0031 in the subject line of the
                                                be submitted to OMB for approval.                       [EERE–2017–BT–TP–0031]                                message. Submit electronic comments
                                                   This proposed rule would not impose                                                                        in WordPerfect, Microsoft Word,
                                                any additional reporting or                             Energy Conservation Program: Test
                                                                                                                                                              portable document format (PDF), or
                                                recordkeeping requirements on either                    Procedure for Three-Phase
                                                                                                                                                              American Standard Code for
                                                small or large Florida citrus handlers.                 Commercial Air-Cooled Air
                                                                                                                                                              Information Interchange (ASCII) file
                                                As with all Federal marketing order                     Conditioners and Heat Pumps With a
                                                                                                                                                              format, and avoid the use of special
                                                programs, reports and forms are                         Certified Cooling Capacity of Less
                                                                                                                                                              characters or any form of encryption.
                                                periodically reviewed to reduce                         Than 65,000 Btu/h
                                                                                                                                                                 3. Postal Mail: Appliance and
                                                information requirements and                            AGENCY:  Office of Energy Efficiency and              Equipment Standards Program, U.S.
                                                duplication by industry and public                      Renewable Energy, Department of                       Department of Energy, Building
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                                                sector agencies.                                        Energy.                                               Technologies Office, Mailstop EE–5B,
                                                   AMS is committed to complying with                   ACTION: Request for information.                      1000 Independence Avenue SW,
                                                the E-Government Act, to promote the                                                                          Washington, DC 20585–0121. If
                                                use of the internet and other                           SUMMARY:   The U.S. Department of                     possible, please submit all items on a
                                                information technologies to provide                     Energy (‘‘DOE’’) is initiating a data                 compact disc (CD), in which case it is
                                                increased opportunities for citizen                     collection process through this request               not necessary to include printed copies.
                                                access to Government information and                    for information (‘‘RFI’’) to consider                    4. Hand Delivery/Courier: Appliance
                                                services, and for other purposes.                       whether to amend its test procedure for               and Equipment Standards Program, U.S.


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Document Created: 2018-10-02 01:19:26
Document Modified: 2018-10-02 01:19:26
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesComments must be received by November 1, 2018.
ContactAbigail Campos, Marketing Specialist, or Christian D. Nissen, Regional Director, Southeast Marketing Field Office, Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA; Telephone: (863) 324-3375, Fax: (863) 291-8614, or Email: [email protected] or [email protected]
FR Citation83 FR 49499 
CFR AssociatedGrapefruit; Marketing Agreements; Oranges; Pummelos; Reporting and Recordkeeping Requirements and Tangerines

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