83_FR_50722 83 FR 50527 - Marketing Order Regulating the Handling of Spearmint Oil Produced in the Far West; Revision of the Salable Quantity and Allotment Percentage for Class 3 (Native) Spearmint Oil for the 2018-2019 Marketing Year

83 FR 50527 - Marketing Order Regulating the Handling of Spearmint Oil Produced in the Far West; Revision of the Salable Quantity and Allotment Percentage for Class 3 (Native) Spearmint Oil for the 2018-2019 Marketing Year

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 83, Issue 195 (October 9, 2018)

Page Range50527-50531
FR Document2018-21844

This proposed rule would implement a recommendation from the Far West Spearmint Oil Administrative Committee (Committee) to increase the quantity of Class 3 (Native) spearmint oil that handlers may purchase from, or handle on behalf of, producers during the 2018-2019 marketing year. The Committee recommended this action to avoid extreme fluctuations in supplies and prices and to help maintain stability in the Far West spearmint oil market.

Federal Register, Volume 83 Issue 195 (Tuesday, October 9, 2018)
[Federal Register Volume 83, Number 195 (Tuesday, October 9, 2018)]
[Proposed Rules]
[Pages 50527-50531]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-21844]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 985

[Doc. No. AMS-SC-17-0073; SC18-985-1A PR]


Marketing Order Regulating the Handling of Spearmint Oil Produced 
in the Far West; Revision of the Salable Quantity and Allotment 
Percentage for Class 3 (Native) Spearmint Oil for the 2018-2019 
Marketing Year

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would implement a recommendation from the 
Far West Spearmint Oil Administrative Committee (Committee) to increase 
the quantity of Class 3 (Native) spearmint oil that handlers may 
purchase from, or handle on behalf of, producers during the 2018-2019 
marketing year. The Committee recommended this action to avoid extreme 
fluctuations in supplies and prices and to help maintain stability in 
the Far West spearmint oil market.

DATES: Comments must be received by December 10, 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. All comments should reference the document number 
and the date and page number of this issue of the Federal Register and 
will be made available for public inspection in the Office of the 
Docket Clerk during regular business hours, or can be viewed at: http://www.regulations.gov. All comments submitted in response to this rule 
will be included in the record and will be made available to the 
public. Please be advised that the identity of the individuals or 
entities submitting the comments will be made public on the internet at 
the address provided above.

FOR FURTHER INFORMATION CONTACT: Barry Broadbent, Senior Marketing 
Specialist, or Gary D. Olson, Regional Director, Northwest Marketing 
Field

[[Page 50528]]

Office, Marketing Order and Agreement Division, Specialty Crops 
Program, AMS, USDA; Telephone: (503) 326-2724, Fax: (503) 326-7440, or 
email: Barry.Broadbent@ams.usda.gov or GaryD.Olson@ams.usda.gov.
    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: Richard.Lower@ams.usda.gov.

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 Order No. 985 (7 CFR part 985), as amended, regulating the 
handling of spearmint oil produced in the Far West (Washington, Idaho, 
Oregon, and designated parts of Nevada and Utah). Part 985 (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 spearmint oil producers 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 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 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, 2018, titled `Reducing Regulation and Controlling 
Regulatory Costs' '' (February 2, 2018).
    This proposal has been reviewed under Executive Order 12988, Civil 
Justice Reform. Under the provisions of the Order now in effect, 
salable quantities and allotment percentages may be established for 
classes of spearmint oil produced in the Far West. This proposed rule 
would increase the quantity of Native spearmint oil produced in the Far 
West that handlers may purchase from, or handle on behalf of, producers 
during the 2018-2019 marketing year, which ends on May 31, 2019.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under section 608c(15)(A) of the 
Act, any handler subject to an order may file with USDA a petition 
stating that the order, any provision of the order, or any obligation 
imposed in connection with the order is not in accordance with law and 
request a modification of the order or to be exempted therefrom. A 
handler is afforded the opportunity for a hearing on the petition. 
After the hearing, USDA would rule on the petition. The Act provides 
that the district court of the United States in any district in which 
the handler is an inhabitant, or has his or her principal place of 
business, has jurisdiction to review USDA's ruling on the petition, 
provided an action is filed not later than 20 days after the date of 
the entry of the ruling.
    This proposal invites comments on a revision to the quantity of 
Native spearmint oil that handlers may purchase from, or handle on 
behalf of, producers during the 2018-2019 marketing year. The salable 
quantity and allotment percentage for Native spearmint oil for the 
2018-19 marketing year was established at 1,307,947 pounds and 53 
percent, respectively, in a final rule published in the Federal 
Register on July 24, 2018 (83 FR 34935). This proposed rule would 
increase the Native spearmint oil salable quantity from 1,307,947 
pounds to 1,357,315 pounds and the allotment percentage from 53 percent 
to 55 percent.
    Under the volume regulation provisions of the Order, the Committee 
meets each year to adopt a marketing policy for the ensuing year. When 
the Committee's marketing policy considerations indicate a need to 
limit the quantity of spearmint oil available to the market to 
establish or maintain orderly marketing conditions, the Committee 
submits a recommendation to the Secretary of Agriculture for volume 
regulation.
    Volume regulation under the Order is effectuated through the 
establishment of a salable quantity and allotment percentage applicable 
to each class of spearmint oil handled in the production area during a 
marketing year. The salable quantity is the total quantity of each 
class of oil that handlers may purchase from, or handle on behalf of, 
producers during a given marketing year. The allotment percentage for 
each class of oil is derived by dividing the salable quantity by the 
total industry allotment base for that same class of oil. The total 
industry allotment base is the aggregate of all allotment base held 
individually by producers. Producer allotment base is the quantity of 
each class of spearmint oil that the Committee has determined is 
representative of a producer's spearmint oil production. Each producer 
is allotted a pro rata share of the total salable quantity of each 
class of spearmint oil each marketing year. Each producer's annual 
allotment is determined by applying the allotment percentage to the 
producer's individual allotment base for each applicable class of 
spearmint oil.
    The full Committee met on October 25, 2017, to consider its 
marketing policy for the 2018-2019 marketing year. At that meeting, the 
Committee determined that marketing conditions indicated a need for 
volume regulation of both classes of spearmint oil (Scotch and Native) 
for the 2018-2019 marketing year. The Committee recommended salable 
quantities of 760,660 pounds and 1,307,947 pounds, and allotment 
percentages of 35 percent and 53 percent, respectively, for Scotch and 
Native spearmint oil. A proposed rule to that effect was published in 
the Federal Register on April 6, 2018 (83 FR 14766). Comments on the 
proposed rule were solicited from interested persons until June 5, 
2018. No comments were received. Subsequently, a final rule 
establishing the salable quantities and allotment percentages for 
Scotch and Native spearmint oil for the 2018-2019 marketing year was 
published in the Federal Register on July 24, 2018 (83 FR 34935).
    Pursuant to authority contained in Sec. Sec.  985.50, 985.51, and 
985.52, the full eight-member Committee met again on July 18, 2018, to 
evaluate the current year's volume control regulation. At the meeting, 
the Committee assessed the current market conditions for spearmint oil 
in relation to the salable quantities and allotment percentages 
established for the 2018-2019 marketing year. The Committee considered 
a number of factors, including the current and projected supply and the 
estimated future demand for all classes of spearmint oil. The Committee 
determined that the established salable quantity and allotment 
percentage in effect for Native spearmint oil for the 2018-2019 
marketing year should be increased to accommodate a rise in market 
demand for that class of spearmint oil.
    At the July 18, 2018, meeting, the Committee recommended increasing 
the 2018-2019 marketing year Native spearmint oil salable quantity from 
1,307,947 pounds to 1,357,315 pounds and the allotment percentage from 
53 percent to 55 percent. The vote to recommend to the Secretary to 
increase the salable quantity and allotment percentage passed 
unanimously.
    This proposal would make additional amounts of Native spearmint oil

[[Page 50529]]

available to the market by increasing the salable quantity and 
allotment percentage previously established under the Order for the 
2018-2019 marketing year. This proposed rule would increase the Native 
spearmint oil salable quantity by 49,368 pounds, to 1,357,315 pounds, 
and would raise the allotment percentage 2 percentage points, to 55 
percent. The additional oil could come from 2018-2019 marketing year 
production or from releasing Native spearmint oil held by producers in 
the reserve pool. As of May 31, 2018, the Committee records show that 
the reserve pool for Native spearmint oil contained 1,020,583 pounds of 
oil, an amount it considers excessive relative to market conditions.
    At the July 18, 2018, meeting, the Committee staff reported that 
estimated demand for Native spearmint oil for the 2018-2019 marketing 
year is greater than previously anticipated. The Committee initially 
estimated the trade demand for Native spearmint oil for the 2018-2019 
marketing year to be 1,306,625. At the July 2018 meeting, the Committee 
revised the expected trade demand for the 2018-2019 marketing year from 
1,306,625 pounds to 1,400,000 pounds. If realized, trade demand would 
be 43,991 pounds above the quantity of Native spearmint oil available 
under the volume control levels now in effect (the Committee estimates 
1,356,009 pounds currently available minus the 1,400,000 pounds 
estimated trade demand, equals a deficit of 43,991 pounds). Without 
increasing the salable quantity and allotment percentage, the market 
for Native spearmint oil may be shorted. The increased quantity of 
Native spearmint oil (49,368 pounds) that would be made available to 
the market as a result of this rulemaking would ensure that market 
demand is fully satisfied in the current year and that there would be 
approximately 5,377 pounds of Native spearmint oil salable inventory 
available to carry-over for the start of the 2019-2020 marketing year, 
which begins on June 1, 2019.
    In making the recommendation to increase the salable quantity and 
allotment percentage of Native spearmint oil, the Committee considered 
all currently available information on the price, supply, and demand of 
Native spearmint oil. The Committee also considered reports and other 
information from handlers and producers in attendance at the meeting.
    This proposal would increase the 2018-2019 marketing year Native 
spearmint oil salable quantity by 49,368 pounds to a total of 1,357,315 
pounds. Actual sales of Native spearmint oil for the 2017-2018 
marketing year totaled 1,565,515 pounds. The 5-year average of Native 
spearmint oil sales is 1,365,377 pounds.
    The Committee estimates that this action would result in 5,377 
pounds of salable Native spearmint oil being carried into the 2019-2020 
marketing year which begins June 1, 2019. While 5,377 pounds is a 
relatively low quantity of salable Native spearmint oil to begin the 
marketing year, reserve pool oil could be released into the market 
under a future relaxation of the volume regulation should it be 
necessary to adequately supply the market prior to the beginning of the 
2019-2020 marketing year. The Committee estimates that a total of 
1,082,257 pounds of Native spearmint oil (1,020,583 currently in 
reserve and an estimated 61,674 pounds of excess oil produced during 
the 2018-2019 marketing year) would be available from the reserve pool, 
if needed.
    As mentioned previously, when the 2018-2019 marketing policy 
statement was drafted, handlers estimated the demand for Native 
spearmint oil for the 2018-2019 marketing year to be 1,306,625 pounds. 
The Committee's initial recommendation for the establishment of the 
Native spearmint oil salable quantity and allotment percentage for the 
2018-2019 marketing year was based on that estimate. The Committee did 
not anticipate the level of demand that the Native spearmint oil market 
is currently experiencing and did not account for it when the marketing 
policy for the 2018-19 marketing year was adopted.
    At the July 18, 2018, meeting, the Committee revised its estimate 
of the current trade demand to 1,400,000 pounds. The Committee now 
believes that the supply of Native spearmint oil available to the 
market under the established salable quantity and allotment percentage 
would be insufficient to satisfy the current level of demand for oil at 
reasonable price levels. The Committee further believes that the 
increase in the salable quantity and allotment percentage proposed in 
this action is vital to ensuring an adequate supply of Native spearmint 
oil is available to the market moving forward.
    The Committee's stated intent in the use of the Order's volume 
control regulation is to keep adequate supplies available to meet 
market needs and to maintain orderly marketing conditions. With that in 
mind, the Committee developed its recommendation for increasing the 
Native spearmint oil salable quantity and allotment percentage for the 
2018-2019 marketing year based on the information discussed above, as 
well as the summary data outlined below.
    (A) Initial estimated 2018-2019 Native allotment base--2,467,825 
pounds. This is the allotment base estimate upon which the original 
2018-2019 salable quantity and allotment percentage was based.
    (B) Revised 2018-2019 Native allotment base--2,467,845 pounds. This 
is 20 pounds more than the initial estimated allotment base of 
2,467,825 pounds. The difference is the result of annual adjustments 
made to the allotment base at the beginning of the marketing year in 
accordance with the provisions of the Order.
    (C) Initial 2018-2019 Native allotment percentage--53 percent. This 
was unanimously recommended by the Committee on October 25, 2017.
    (D) Initial 2018-2019 Native salable quantity--1,307,947 pounds. 
This figure is 53 percent of the original estimated 2018-2019 allotment 
base of 2,467,825 pounds.
    (E) Adjusted initial 2018-2019 Native salable quantity--1,307,958 
pounds. This figure reflects the salable quantity actually available at 
the beginning of the 2018-2019 marketing year. This quantity is derived 
by applying the initial 53 percent allotment percentage to the revised 
allotment base of 2,467,845.
    (F) Proposed revision to the 2018-2019 Native salable quantity and 
allotment percentage:
    (1) Proposed increase in the Native allotment percentage--2 
percent. The Committee recommended an increase of 2 percentage points 
over the initial Native allotment percentage.
    (2) Proposed revised 2018-2019 Native allotment percentage--55 
percent. This number was derived by adding the increase of 2 percentage 
points to the initially established 2018-2019 allotment percentage of 
53 percent.
    (3) Proposed revised 2018-2019 Native salable quantity--1,357,315 
pounds. This amount is 55 percent of the revised 2018-2019 allotment 
base of 2,467,845 pounds.
    (4) Computed increase in the 2018-2019 Native salable quantity as a 
result of the proposed revision--49,368 pounds. This figure represents 
the difference between the current salable quantity of 1,307,947 pounds 
and the proposed salable quantity of 1,357,315 pounds.
    Scotch spearmint oil is also regulated by the Order. As mentioned 
previously, a salable quantity and allotment percentage for Scotch 
spearmint oil for the 2018-19 marketing year was established in a final 
rule published in

[[Page 50530]]

the Federal Register on July 24, 2018 (83 FR 34935). At the July 18, 
2018, meeting, the Committee considered the projected production, 
inventory, and marketing conditions for Scotch spearmint oil for the 
2018-2019 marketing year. After receiving reports from the Committee 
staff and comments from the industry, the consensus of the Committee 
was that the established salable quantity and allotment percentage for 
Scotch spearmint oil was appropriate for the current market conditions. 
Therefore, the Committee took no further action with regard to Scotch 
spearmint oil for the 2018-2019 marketing year.
    This proposed rule would relax the regulation of Native spearmint 
oil and would allow producers to meet market demand while improving 
producer returns. In conjunction with the issuance of this proposed 
rule, the Committee's revised marketing policy statement for the 2018-
2019 marketing year has been reviewed by USDA.
    The proposed increase in the Native spearmint oil salable quantity 
and allotment percentage would account for the anticipated market needs 
for that class of oil. In determining anticipated market needs, the 
Committee considered changes and trends in historical sales, 
production, and demand.

Initial Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS) 
has considered the economic impact of this action on small entities. 
Accordingly, AMS has prepared this initial regulatory flexibility 
analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Marketing orders issued 
pursuant to the Act, and the rules issued thereunder, are unique in 
that they are brought about through group action of essentially small 
entities acting on their own behalf.
    There are eight spearmint oil handlers subject to regulation under 
the Order, and approximately 43 producers of Scotch spearmint oil and 
approximately 95 producers of Native spearmint oil in the regulated 
production area. Small agricultural service firms are defined by the 
Small Business Administration (SBA) as those having annual receipts of 
less than $7,500,000, and small agricultural producers are defined as 
those having annual receipts of less than $750,000 (13 CFR 121.201).
    Based on the SBA's definition of small entities, the Committee 
estimates that only two of the eight handlers regulated by the Order 
could be considered small entities. Most of the handlers are large 
corporations involved in the international trading of essential oils 
and the products of essential oils. In addition, the Committee 
estimates that 12 of the 43 Scotch spearmint oil producers and 31 of 
the 95 Native spearmint oil producers could be classified as small 
entities under the SBA definition. Thus, the majority of handlers and 
producers of Far West spearmint oil may not be classified as small 
entities.
    The use of volume control regulation allows the spearmint oil 
industry to fully supply spearmint oil markets while avoiding the 
negative consequences of over-supplying these markets. Without volume 
control regulation, the supply and price of spearmint oil would likely 
fluctuate widely. Periods of oversupply could result in low producer 
prices and a large volume of oil stored and carried over to future crop 
years. Periods of undersupply could lead to excessive price spikes and 
drive end users to source flavoring needs from other markets, 
potentially causing long-term economic damage to the domestic spearmint 
oil industry. The Order's volume control provisions have been 
successfully implemented in the domestic spearmint oil industry since 
1980 and provide benefits for producers, handlers, manufacturers, and 
consumers.
    This proposed rule would increase the quantity of Native spearmint 
oil that handlers may purchase from, or handle on behalf of, producers 
during the 2018-2019 marketing year, which ends May 31, 2019. The 2018-
2019 marketing year Native spearmint oil salable quantity was initially 
established at 1,307,947 pounds and the allotment percentage initially 
set at 53 percent. This proposed rule would increase the Native 
spearmint oil salable quantity to 1,357,315 pounds and the allotment 
percentage to 55 percent.
    Based on the information and projections available at the July 18, 
2018, meeting, the Committee considered several alternatives to this 
increase. The Committee considered leaving the salable quantity and 
allotment percentage unchanged and also considered other potential 
levels of increase. The Committee reached its recommendation to 
increase the salable quantity and allotment percentage for Native 
spearmint oil after careful consideration of all available information 
and input from all interested industry participants because it believes 
that the levels recommended would achieve the desired objectives. 
Without the increase, the Committee believes the industry would not be 
able to satisfactorily meet market demand.
    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 OMB and assigned OMB No. 0581-0178, Specialty 
Crops. No changes are necessary in those requirements as a result of 
this action. Should any changes become necessary, they would be 
submitted to OMB for approval.
    This proposed rule would relax the volume regulation requirements 
established under the Order for the 2018-19 marketing year. 
Accordingly, this action would not impose any additional reporting or 
recordkeeping requirements on either small or large spearmint oil 
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 action.
    In addition, the Committee's July 18, 2018, meeting was widely 
publicized throughout the Far West spearmint oil industry, and all 
interested persons were invited to attend the meeting and participate 
in Committee deliberations on all issues. The meeting was public, and 
all entities, both large and small, were able to express views on this 
issue. Finally, interested persons are invited to submit comments on 
this proposed rule, including the regulatory and information collection 
impacts of this action on small businesses.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at: http://www.ams.usda.gov/rules-regulations/moa/small-businesses. Any questions 
about the compliance guide should be sent to Richard Lower at the 
previously mentioned address in the FOR FURTHER INFORMATION CONTACT 
section.
    A 60-day comment period is provided to allow interested persons to 
respond to this proposal. All written comments timely received will be 
considered

[[Page 50531]]

before a final determination is made on this matter.

List of Subjects in 7 CFR Part 985

    Marketing agreements, Oils and fats, Reporting and recordkeeping 
requirements, Spearmint oil.

    For the reasons set forth in the preamble, 7 CFR part 985 is 
proposed to be amended as follows:

PART 985--MARKETING ORDER REGULATING THE HANDLING OF SPEARMINT OIL 
PRODUCED IN THE FAR WEST

0
1. The authority citation for part 985 continues to read as follows:

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

0
2. In Sec.  985.233, revise the section heading and paragraph (b) to 
read as follows:


Sec.  985.233   Salable quantities and allotment percentages--2018-2019 
marketing year.

* * * * *
    (b) Class 3 (Native) oil--a salable quantity of 1,357,315 pounds 
and an allotment percentage of 55 percent.

    Dated: October 3, 2018.
Bruce Summers,
Administrator, Agricultural Marketing Service.
[FR Doc. 2018-21844 Filed 10-5-18; 8:45 am]
 BILLING CODE 3410-02-P



                                                                                                                                                                                               50527

                                                Proposed Rules                                                                                                Federal Register
                                                                                                                                                              Vol. 83, No. 195

                                                                                                                                                              Tuesday, October 9, 2018



                                                This section of the FEDERAL REGISTER                    consumer demands, changing domestic                   DEPARTMENT OF AGRICULTURE
                                                contains notices to the public of the proposed          and international marketing practices,
                                                issuance of rules and regulations. The                  and new technology. To assist in                      Agricultural Marketing Service
                                                purpose of these notices is to give interested
                                                                                                        marketing, AMS developed the QSVP, a
                                                persons an opportunity to participate in the                                                                  7 CFR Part 985
                                                rule making prior to the adoption of the final          suite of audit-based programs that can
                                                rules.                                                  provide confidence that process points                [Doc. No. AMS–SC–17–0073; SC18–985–1A
                                                                                                        meet specified requirements.                          PR]
                                                                                                           This action informs the public of the
                                                DEPARTMENT OF AGRICULTURE                                                                                     Marketing Order Regulating the
                                                                                                        withdrawal of the proposed rule                       Handling of Spearmint Oil Produced in
                                                Agricultural Marketing Service                          published in the Federal Register (81                 the Far West; Revision of the Salable
                                                                                                        FR 78057) on November 7, 2016. The                    Quantity and Allotment Percentage for
                                                7 CFR Parts 56, 62, and 70                              proposed rule would have amended 7                    Class 3 (Native) Spearmint Oil for the
                                                                                                        CFR part 62, QSVP to expand the                       2018–2019 Marketing Year
                                                [Docket No. AMS–LPS–15–0057]                            commodities under QSVP to include
                                                                                                        those authorized under the Act; would                 AGENCY:  Agricultural Marketing Service,
                                                Amendments to Quality Systems                                                                                 USDA.
                                                Verification Programs and Conforming                    have amended the title of the regulation
                                                                                                        to remove the reference to ‘‘Livestock,               ACTION: Proposed rule.
                                                Changes; Withdrawal
                                                                                                        Meat, and Other Commodities’’; would
                                                AGENCY: Agricultural Marketing Service,                                                                       SUMMARY:   This proposed rule would
                                                                                                        have defined the types of programs and
                                                USDA.                                                                                                         implement a recommendation from the
                                                                                                        services offered under QSVP; and would                Far West Spearmint Oil Administrative
                                                ACTION: Notice of withdrawal.                           have updated administrative items to                  Committee (Committee) to increase the
                                                SUMMARY:    This action informs the public              reflect current terminology and                       quantity of Class 3 (Native) spearmint
                                                that the Agricultural Marketing Service                 organizational structure. Additionally,               oil that handlers may purchase from, or
                                                (AMS) is withdrawing a proposed rule                    the proposed rule would have amended                  handle on behalf of, producers during
                                                published in the Federal Register on                    7 CFR parts 56 and 70, which provide                  the 2018–2019 marketing year. The
                                                November 7, 2016, that proposed to                      for services to the shell egg and poultry             Committee recommended this action to
                                                amend Quality Systems Verification                      industries, respectively, to remove any               avoid extreme fluctuations in supplies
                                                Program (QSVP) regulations. Upon                        references to audit and verification                  and prices and to help maintain stability
                                                further review, the agency has decided                  activities and update administrative                  in the Far West spearmint oil market.
                                                to clarify that all voluntary, user-fee                 items to reflect current organizational               DATES: Comments must be received by
                                                services under this part are applicable to              structure. The proposed rule provided a               December 10, 2018.
                                                all commodities covered by the                          60-day public comment period during                   ADDRESSES: Interested persons are
                                                Agricultural Marketing Act of 1946                      which no comments were received.                      invited to submit written comments
                                                (Act), as amended. Accordingly, a                          Upon further review, AMS decided to                concerning this proposed rule.
                                                proposed rule covering all audit-based                                                                        Comments must be sent to the Docket
                                                                                                        clarify that all voluntary, user-fee
                                                services is forthcoming from the agency.                                                                      Clerk, Marketing Order and Agreement
                                                                                                        services under 7 CFR part 62 are
                                                DATES: The proposed rule published                                                                            Division, Specialty Crops Program,
                                                                                                        applicable to all commodities covered
                                                November 7, 2016, at 81 FR 78057, is                                                                          AMS, USDA, 1400 Independence
                                                                                                        by the Act. AMS also plans to
                                                withdrawn as of October 9, 2018.                                                                              Avenue SW, STOP 0237, Washington,
                                                                                                        harmonize administrative procedures
                                                FOR FURTHER INFORMATION CONTACT:                                                                              DC 20250–0237; Fax: (202) 720–8938; or
                                                                                                        governing these services. A new
                                                Jeffrey Waite, Branch Chief, Auditing                                                                         internet: http://www.regulations.gov. All
                                                                                                        proposed rule to amend 7 CFR part 62
                                                Services Branch, Quality Assessment                                                                           comments should reference the
                                                                                                        to that effect is forthcoming from the
                                                Division; Livestock and Poultry                                                                               document number and the date and
                                                Program, Agricultural Marketing                         agency. Therefore, for the reasons set
                                                                                                                                                              page number of this issue of the Federal
                                                Service, U.S. Department of Agriculture;                forth above, AMS announces that it is
                                                                                                                                                              Register and will be made available for
                                                Room 3932–S, STOP 0258, 1400                            withdrawing the proposed rule
                                                                                                                                                              public inspection in the Office of the
                                                Independence Avenue SW, Washington,                     published in the Federal Register (81                 Docket Clerk during regular business
                                                DC 20250–0258; telephone (202) 720–                     FR 78057) on November 7, 2016.                        hours, or can be viewed at: http://
                                                4411; or email to Jeffrey.Waite@                          Dated: October 3, 2018.                             www.regulations.gov. All comments
                                                ams.usda.gov.                                           Bruce Summers,                                        submitted in response to this rule will
                                                SUPPLEMENTARY INFORMATION: The Act                      Administrator, Agricultural Marketing                 be included in the record and will be
                                                directs and authorizes the Secretary of                 Service.                                              made available to the public. Please be
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                                                Agriculture to facilitate the competitive               [FR Doc. 2018–21843 Filed 10–5–18; 8:45 am]
                                                                                                                                                              advised that the identity of the
                                                and efficient marketing of agricultural                                                                       individuals or entities submitting the
                                                                                                        BILLING CODE 3410–02–P
                                                products and provides that rulemaking                                                                         comments will be made public on the
                                                be undertaken as necessary to effectuate                                                                      internet at the address provided above.
                                                its purpose. Under the authority of the                                                                       FOR FURTHER INFORMATION CONTACT:
                                                Act, AMS programs support a strategic                                                                         Barry Broadbent, Senior Marketing
                                                marketing perspective that adapts                                                                             Specialist, or Gary D. Olson, Regional
                                                product and marketing decisions to                                                                            Director, Northwest Marketing Field


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                                                50528                  Federal Register / Vol. 83, No. 195 / Tuesday, October 9, 2018 / Proposed Rules

                                                Office, Marketing Order and Agreement                   parties may file suit in court. Under                 representative of a producer’s spearmint
                                                Division, Specialty Crops Program,                      section 608c(15)(A) of the Act, any                   oil production. Each producer is allotted
                                                AMS, USDA; Telephone: (503) 326–                        handler subject to an order may file                  a pro rata share of the total salable
                                                2724, Fax: (503) 326–7440, or email:                    with USDA a petition stating that the                 quantity of each class of spearmint oil
                                                Barry.Broadbent@ams.usda.gov or                         order, any provision of the order, or any             each marketing year. Each producer’s
                                                GaryD.Olson@ams.usda.gov.                               obligation imposed in connection with                 annual allotment is determined by
                                                   Small businesses may request                         the order is not in accordance with law               applying the allotment percentage to the
                                                information on complying with this                      and request a modification of the order               producer’s individual allotment base for
                                                regulation by contacting Richard Lower,                 or to be exempted therefrom. A handler                each applicable class of spearmint oil.
                                                Marketing Order and Agreement                           is afforded the opportunity for a hearing                The full Committee met on October
                                                Division, Specialty Crops Program,                      on the petition. After the hearing, USDA              25, 2017, to consider its marketing
                                                AMS, USDA, 1400 Independence                            would rule on the petition. The Act                   policy for the 2018–2019 marketing
                                                Avenue SW, STOP 0237, Washington,                       provides that the district court of the               year. At that meeting, the Committee
                                                DC 20250–0237; Telephone: (202) 720–                    United States in any district in which                determined that marketing conditions
                                                2491, Fax: (202) 720–8938, or email:                    the handler is an inhabitant, or has his              indicated a need for volume regulation
                                                Richard.Lower@ams.usda.gov.                             or her principal place of business, has               of both classes of spearmint oil (Scotch
                                                SUPPLEMENTARY INFORMATION: This                         jurisdiction to review USDA’s ruling on               and Native) for the 2018–2019
                                                action, pursuant to 5 U.S.C. 553,                       the petition, provided an action is filed             marketing year. The Committee
                                                proposes an amendment to regulations                    not later than 20 days after the date of              recommended salable quantities of
                                                issued to carry out a marketing order as                the entry of the ruling.                              760,660 pounds and 1,307,947 pounds,
                                                defined in 7 CFR 900.2(j). This proposed                   This proposal invites comments on a                and allotment percentages of 35 percent
                                                rule is issued under Marketing Order                    revision to the quantity of Native                    and 53 percent, respectively, for Scotch
                                                No. 985 (7 CFR part 985), as amended,                   spearmint oil that handlers may                       and Native spearmint oil. A proposed
                                                regulating the handling of spearmint oil                purchase from, or handle on behalf of,                rule to that effect was published in the
                                                produced in the Far West (Washington,                   producers during the 2018–2019                        Federal Register on April 6, 2018 (83 FR
                                                Idaho, Oregon, and designated parts of                  marketing year. The salable quantity                  14766). Comments on the proposed rule
                                                Nevada and Utah). Part 985 (referred to                 and allotment percentage for Native                   were solicited from interested persons
                                                as ‘‘the Order’’) is effective under the                spearmint oil for the 2018–19 marketing               until June 5, 2018. No comments were
                                                Agricultural Marketing Agreement Act                    year was established at 1,307,947                     received. Subsequently, a final rule
                                                of 1937, as amended (7 U.S.C. 601–674),                 pounds and 53 percent, respectively, in               establishing the salable quantities and
                                                hereinafter referred to as the ‘‘Act.’’ The             a final rule published in the Federal                 allotment percentages for Scotch and
                                                Committee locally administers the                       Register on July 24, 2018 (83 FR 34935).              Native spearmint oil for the 2018–2019
                                                Order and is comprised of spearmint oil                 This proposed rule would increase the                 marketing year was published in the
                                                producers operating within the area of                  Native spearmint oil salable quantity                 Federal Register on July 24, 2018 (83 FR
                                                production, and a public member.                        from 1,307,947 pounds to 1,357,315                    34935).
                                                   The Department of Agriculture                        pounds and the allotment percentage                      Pursuant to authority contained in
                                                (USDA) is issuing this proposed rule in                 from 53 percent to 55 percent.                        §§ 985.50, 985.51, and 985.52, the full
                                                conformance with Executive Orders                          Under the volume regulation                        eight-member Committee met again on
                                                13563 and 13175. This action falls                      provisions of the Order, the Committee                July 18, 2018, to evaluate the current
                                                within a category of regulatory actions                 meets each year to adopt a marketing                  year’s volume control regulation. At the
                                                that the Office of Management and                       policy for the ensuing year. When the                 meeting, the Committee assessed the
                                                Budget (OMB) exempted from Executive                    Committee’s marketing policy                          current market conditions for spearmint
                                                Order 12866 review.                                     considerations indicate a need to limit               oil in relation to the salable quantities
                                                   Additionally, because this proposed                  the quantity of spearmint oil available to            and allotment percentages established
                                                rule does not meet the definition of a                  the market to establish or maintain                   for the 2018–2019 marketing year. The
                                                significant regulatory action, it does not              orderly marketing conditions, the                     Committee considered a number of
                                                trigger the requirements contained in                   Committee submits a recommendation                    factors, including the current and
                                                Executive Order 13771. See OMB’s                        to the Secretary of Agriculture for                   projected supply and the estimated
                                                Memorandum titled ‘‘Interim Guidance                    volume regulation.                                    future demand for all classes of
                                                Implementing Section 2 of the Executive                    Volume regulation under the Order is               spearmint oil. The Committee
                                                Order of January 30, 2018, titled                       effectuated through the establishment of              determined that the established salable
                                                ‘Reducing Regulation and Controlling                    a salable quantity and allotment                      quantity and allotment percentage in
                                                Regulatory Costs’ ’’ (February 2, 2018).                percentage applicable to each class of                effect for Native spearmint oil for the
                                                   This proposal has been reviewed                      spearmint oil handled in the production               2018–2019 marketing year should be
                                                under Executive Order 12988, Civil                      area during a marketing year. The                     increased to accommodate a rise in
                                                Justice Reform. Under the provisions of                 salable quantity is the total quantity of             market demand for that class of
                                                the Order now in effect, salable                        each class of oil that handlers may                   spearmint oil.
                                                quantities and allotment percentages                    purchase from, or handle on behalf of,                   At the July 18, 2018, meeting, the
                                                may be established for classes of                       producers during a given marketing                    Committee recommended increasing the
                                                spearmint oil produced in the Far West.                 year. The allotment percentage for each               2018–2019 marketing year Native
                                                This proposed rule would increase the                   class of oil is derived by dividing the               spearmint oil salable quantity from
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                                                quantity of Native spearmint oil                        salable quantity by the total industry                1,307,947 pounds to 1,357,315 pounds
                                                produced in the Far West that handlers                  allotment base for that same class of oil.            and the allotment percentage from 53
                                                may purchase from, or handle on behalf                  The total industry allotment base is the              percent to 55 percent. The vote to
                                                of, producers during the 2018–2019                      aggregate of all allotment base held                  recommend to the Secretary to increase
                                                marketing year, which ends on May 31,                   individually by producers. Producer                   the salable quantity and allotment
                                                2019.                                                   allotment base is the quantity of each                percentage passed unanimously.
                                                   The Act provides that administrative                 class of spearmint oil that the                          This proposal would make additional
                                                proceedings must be exhausted before                    Committee has determined is                           amounts of Native spearmint oil


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                                                                       Federal Register / Vol. 83, No. 195 / Tuesday, October 9, 2018 / Proposed Rules                                          50529

                                                available to the market by increasing the               the 2017–2018 marketing year totaled                  year based on the information discussed
                                                salable quantity and allotment                          1,565,515 pounds. The 5-year average of               above, as well as the summary data
                                                percentage previously established under                 Native spearmint oil sales is 1,365,377               outlined below.
                                                the Order for the 2018–2019 marketing                   pounds.                                                  (A) Initial estimated 2018–2019
                                                year. This proposed rule would increase                    The Committee estimates that this                  Native allotment base—2,467,825
                                                the Native spearmint oil salable quantity               action would result in 5,377 pounds of                pounds. This is the allotment base
                                                by 49,368 pounds, to 1,357,315 pounds,                  salable Native spearmint oil being                    estimate upon which the original 2018–
                                                and would raise the allotment                           carried into the 2019–2020 marketing                  2019 salable quantity and allotment
                                                percentage 2 percentage points, to 55                   year which begins June 1, 2019. While                 percentage was based.
                                                percent. The additional oil could come                  5,377 pounds is a relatively low                         (B) Revised 2018–2019 Native
                                                from 2018–2019 marketing year                           quantity of salable Native spearmint oil              allotment base—2,467,845 pounds. This
                                                production or from releasing Native                     to begin the marketing year, reserve pool             is 20 pounds more than the initial
                                                spearmint oil held by producers in the                  oil could be released into the market                 estimated allotment base of 2,467,825
                                                reserve pool. As of May 31, 2018, the                   under a future relaxation of the volume               pounds. The difference is the result of
                                                Committee records show that the                         regulation should it be necessary to                  annual adjustments made to the
                                                reserve pool for Native spearmint oil                   adequately supply the market prior to                 allotment base at the beginning of the
                                                contained 1,020,583 pounds of oil, an                   the beginning of the 2019–2020                        marketing year in accordance with the
                                                amount it considers excessive relative to               marketing year. The Committee                         provisions of the Order.
                                                market conditions.                                      estimates that a total of 1,082,257                      (C) Initial 2018–2019 Native allotment
                                                   At the July 18, 2018, meeting, the                   pounds of Native spearmint oil                        percentage—53 percent. This was
                                                Committee staff reported that estimated                 (1,020,583 currently in reserve and an                unanimously recommended by the
                                                demand for Native spearmint oil for the                 estimated 61,674 pounds of excess oil                 Committee on October 25, 2017.
                                                2018–2019 marketing year is greater                     produced during the 2018–2019                            (D) Initial 2018–2019 Native salable
                                                than previously anticipated. The                        marketing year) would be available from               quantity—1,307,947 pounds. This figure
                                                Committee initially estimated the trade                 the reserve pool, if needed.                          is 53 percent of the original estimated
                                                demand for Native spearmint oil for the                    As mentioned previously, when the                  2018–2019 allotment base of 2,467,825
                                                2018–2019 marketing year to be                          2018–2019 marketing policy statement                  pounds.
                                                1,306,625. At the July 2018 meeting, the                was drafted, handlers estimated the                      (E) Adjusted initial 2018–2019 Native
                                                Committee revised the expected trade                    demand for Native spearmint oil for the               salable quantity—1,307,958 pounds.
                                                demand for the 2018–2019 marketing                      2018–2019 marketing year to be                        This figure reflects the salable quantity
                                                year from 1,306,625 pounds to                           1,306,625 pounds. The Committee’s                     actually available at the beginning of the
                                                1,400,000 pounds. If realized, trade                    initial recommendation for the                        2018–2019 marketing year. This
                                                demand would be 43,991 pounds above                     establishment of the Native spearmint                 quantity is derived by applying the
                                                the quantity of Native spearmint oil                    oil salable quantity and allotment                    initial 53 percent allotment percentage
                                                available under the volume control                      percentage for the 2018–2019 marketing                to the revised allotment base of
                                                levels now in effect (the Committee                     year was based on that estimate. The                  2,467,845.
                                                estimates 1,356,009 pounds currently                    Committee did not anticipate the level                   (F) Proposed revision to the 2018–
                                                available minus the 1,400,000 pounds                    of demand that the Native spearmint oil               2019 Native salable quantity and
                                                estimated trade demand, equals a deficit                market is currently experiencing and                  allotment percentage:
                                                of 43,991 pounds). Without increasing                   did not account for it when the                          (1) Proposed increase in the Native
                                                the salable quantity and allotment                      marketing policy for the 2018–19                      allotment percentage—2 percent. The
                                                percentage, the market for Native                       marketing year was adopted.                           Committee recommended an increase of
                                                spearmint oil may be shorted. The                          At the July 18, 2018, meeting, the                 2 percentage points over the initial
                                                increased quantity of Native spearmint                  Committee revised its estimate of the                 Native allotment percentage.
                                                oil (49,368 pounds) that would be made                  current trade demand to 1,400,000                        (2) Proposed revised 2018–2019
                                                available to the market as a result of this             pounds. The Committee now believes                    Native allotment percentage—55
                                                rulemaking would ensure that market                     that the supply of Native spearmint oil               percent. This number was derived by
                                                demand is fully satisfied in the current                available to the market under the                     adding the increase of 2 percentage
                                                year and that there would be                            established salable quantity and                      points to the initially established 2018–
                                                approximately 5,377 pounds of Native                    allotment percentage would be                         2019 allotment percentage of 53 percent.
                                                spearmint oil salable inventory available               insufficient to satisfy the current level of             (3) Proposed revised 2018–2019
                                                to carry-over for the start of the 2019–                demand for oil at reasonable price                    Native salable quantity—1,357,315
                                                2020 marketing year, which begins on                    levels. The Committee further believes                pounds. This amount is 55 percent of
                                                June 1, 2019.                                           that the increase in the salable quantity             the revised 2018–2019 allotment base of
                                                   In making the recommendation to                      and allotment percentage proposed in                  2,467,845 pounds.
                                                increase the salable quantity and                       this action is vital to ensuring an                      (4) Computed increase in the 2018–
                                                allotment percentage of Native                          adequate supply of Native spearmint oil               2019 Native salable quantity as a result
                                                spearmint oil, the Committee                            is available to the market moving                     of the proposed revision—49,368
                                                considered all currently available                      forward.                                              pounds. This figure represents the
                                                information on the price, supply, and                      The Committee’s stated intent in the               difference between the current salable
                                                demand of Native spearmint oil. The                     use of the Order’s volume control                     quantity of 1,307,947 pounds and the
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                                                Committee also considered reports and                   regulation is to keep adequate supplies               proposed salable quantity of 1,357,315
                                                other information from handlers and                     available to meet market needs and to                 pounds.
                                                producers in attendance at the meeting.                 maintain orderly marketing conditions.                   Scotch spearmint oil is also regulated
                                                   This proposal would increase the                     With that in mind, the Committee                      by the Order. As mentioned previously,
                                                2018–2019 marketing year Native                         developed its recommendation for                      a salable quantity and allotment
                                                spearmint oil salable quantity by 49,368                increasing the Native spearmint oil                   percentage for Scotch spearmint oil for
                                                pounds to a total of 1,357,315 pounds.                  salable quantity and allotment                        the 2018–19 marketing year was
                                                Actual sales of Native spearmint oil for                percentage for the 2018–2019 marketing                established in a final rule published in


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                                                50530                  Federal Register / Vol. 83, No. 195 / Tuesday, October 9, 2018 / Proposed Rules

                                                the Federal Register on July 24, 2018                      Based on the SBA’s definition of                   interested industry participants because
                                                (83 FR 34935). At the July 18, 2018,                    small entities, the Committee estimates               it believes that the levels recommended
                                                meeting, the Committee considered the                   that only two of the eight handlers                   would achieve the desired objectives.
                                                projected production, inventory, and                    regulated by the Order could be                       Without the increase, the Committee
                                                marketing conditions for Scotch                         considered small entities. Most of the                believes the industry would not be able
                                                spearmint oil for the 2018–2019                         handlers are large corporations involved              to satisfactorily meet market demand.
                                                marketing year. After receiving reports                 in the international trading of essential                In accordance with the Paperwork
                                                from the Committee staff and comments                   oils and the products of essential oils.              Reduction Act of 1995 (44 U.S.C.
                                                from the industry, the consensus of the                 In addition, the Committee estimates                  Chapter 35), the Order’s information
                                                Committee was that the established                      that 12 of the 43 Scotch spearmint oil                collection requirements have been
                                                salable quantity and allotment                          producers and 31 of the 95 Native                     previously approved by OMB and
                                                percentage for Scotch spearmint oil was                 spearmint oil producers could be                      assigned OMB No. 0581–0178, Specialty
                                                appropriate for the current market                      classified as small entities under the                Crops. No changes are necessary in
                                                conditions. Therefore, the Committee                    SBA definition. Thus, the majority of                 those requirements as a result of this
                                                took no further action with regard to                   handlers and producers of Far West                    action. Should any changes become
                                                Scotch spearmint oil for the 2018–2019                  spearmint oil may not be classified as                necessary, they would be submitted to
                                                marketing year.                                         small entities.                                       OMB for approval.
                                                   This proposed rule would relax the                      The use of volume control regulation                  This proposed rule would relax the
                                                regulation of Native spearmint oil and                  allows the spearmint oil industry to                  volume regulation requirements
                                                would allow producers to meet market                    fully supply spearmint oil markets                    established under the Order for the
                                                demand while improving producer                         while avoiding the negative                           2018–19 marketing year. Accordingly,
                                                returns. In conjunction with the                        consequences of over-supplying these                  this action would not impose any
                                                issuance of this proposed rule, the                     markets. Without volume control                       additional reporting or recordkeeping
                                                Committee’s revised marketing policy                    regulation, the supply and price of                   requirements on either small or large
                                                statement for the 2018–2019 marketing                   spearmint oil would likely fluctuate                  spearmint oil handlers. As with all
                                                year has been reviewed by USDA.                         widely. Periods of oversupply could                   Federal marketing order programs,
                                                   The proposed increase in the Native                  result in low producer prices and a large             reports and forms are periodically
                                                spearmint oil salable quantity and                      volume of oil stored and carried over to              reviewed to reduce information
                                                allotment percentage would account for                  future crop years. Periods of                         requirements and duplication by
                                                the anticipated market needs for that                   undersupply could lead to excessive                   industry and public sector agencies.
                                                class of oil. In determining anticipated                price spikes and drive end users to
                                                                                                                                                                 AMS is committed to complying with
                                                market needs, the Committee                             source flavoring needs from other
                                                                                                                                                              the E-Government Act, to promote the
                                                considered changes and trends in                        markets, potentially causing long-term
                                                                                                                                                              use of the internet and other
                                                historical sales, production, and                       economic damage to the domestic
                                                                                                                                                              information technologies to provide
                                                demand.                                                 spearmint oil industry. The Order’s
                                                                                                                                                              increased opportunities for citizen
                                                                                                        volume control provisions have been
                                                Initial Regulatory Flexibility Analysis                                                                       access to Government information and
                                                                                                        successfully implemented in the
                                                   Pursuant to requirements set forth in                                                                      services, and for other purposes.
                                                                                                        domestic spearmint oil industry since
                                                the Regulatory Flexibility Act (RFA) (5                 1980 and provide benefits for producers,                 USDA has not identified any relevant
                                                U.S.C. 601–612), the Agricultural                       handlers, manufacturers, and                          Federal rules that duplicate, overlap, or
                                                Marketing Service (AMS) has                             consumers.                                            conflict with this action.
                                                considered the economic impact of this                     This proposed rule would increase                     In addition, the Committee’s July 18,
                                                action on small entities. Accordingly,                  the quantity of Native spearmint oil that             2018, meeting was widely publicized
                                                AMS has prepared this initial regulatory                handlers may purchase from, or handle                 throughout the Far West spearmint oil
                                                flexibility analysis.                                   on behalf of, producers during the                    industry, and all interested persons
                                                   The purpose of the RFA is to fit                     2018–2019 marketing year, which ends                  were invited to attend the meeting and
                                                regulatory actions to the scale of                      May 31, 2019. The 2018–2019 marketing                 participate in Committee deliberations
                                                businesses subject to such actions in                   year Native spearmint oil salable                     on all issues. The meeting was public,
                                                order that small businesses will not be                 quantity was initially established at                 and all entities, both large and small,
                                                unduly or disproportionately burdened.                  1,307,947 pounds and the allotment                    were able to express views on this issue.
                                                Marketing orders issued pursuant to the                 percentage initially set at 53 percent.               Finally, interested persons are invited to
                                                Act, and the rules issued thereunder, are               This proposed rule would increase the                 submit comments on this proposed rule,
                                                unique in that they are brought about                   Native spearmint oil salable quantity to              including the regulatory and
                                                through group action of essentially                     1,357,315 pounds and the allotment                    information collection impacts of this
                                                small entities acting on their own                      percentage to 55 percent.                             action on small businesses.
                                                behalf.                                                    Based on the information and                          A small business guide on complying
                                                   There are eight spearmint oil handlers               projections available at the July 18,                 with fruit, vegetable, and specialty crop
                                                subject to regulation under the Order,                  2018, meeting, the Committee                          marketing agreements and orders may
                                                and approximately 43 producers of                       considered several alternatives to this               be viewed at: http://www.ams.usda.gov/
                                                Scotch spearmint oil and approximately                  increase. The Committee considered                    rules-regulations/moa/small-businesses.
                                                95 producers of Native spearmint oil in                 leaving the salable quantity and                      Any questions about the compliance
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                                                the regulated production area. Small                    allotment percentage unchanged and                    guide should be sent to Richard Lower
                                                agricultural service firms are defined by               also considered other potential levels of             at the previously mentioned address in
                                                the Small Business Administration                       increase. The Committee reached its                   the FOR FURTHER INFORMATION CONTACT
                                                (SBA) as those having annual receipts of                recommendation to increase the salable                section.
                                                less than $7,500,000, and small                         quantity and allotment percentage for                    A 60-day comment period is provided
                                                agricultural producers are defined as                   Native spearmint oil after careful                    to allow interested persons to respond
                                                those having annual receipts of less than               consideration of all available                        to this proposal. All written comments
                                                $750,000 (13 CFR 121.201).                              information and input from all                        timely received will be considered


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                                                                       Federal Register / Vol. 83, No. 195 / Tuesday, October 9, 2018 / Proposed Rules                                         50531

                                                before a final determination is made on                 statistical reports to the industry and               Council locally administers the Order
                                                this matter.                                            meet requirements under the marketing                 and is comprised of growers and
                                                                                                        order.                                                handlers of pecans operating within the
                                                List of Subjects in 7 CFR Part 985
                                                                                                        DATES: Comments must be received by                   production area, and one accumulator
                                                  Marketing agreements, Oils and fats,                  November 8, 2018.                                     and one public member.
                                                Reporting and recordkeeping                             ADDRESSES: Interested persons are                        The Department of Agriculture
                                                requirements, Spearmint oil.                            invited to submit written comments                    (USDA) is issuing this proposed rule in
                                                  For the reasons set forth in the                      concerning this proposal. Comments                    conformance with Executive Orders
                                                preamble, 7 CFR part 985 is proposed to                 must be sent to the Docket Clerk,                     13563 and 13175. This action falls
                                                be amended as follows:                                  Marketing Order and Agreement                         within a category of regulatory actions
                                                                                                        Division, Specialty Crops Program,                    that the Office of Management and
                                                PART 985—MARKETING ORDER                                AMS, USDA, 1400 Independence                          Budget (OMB) has exempted from
                                                REGULATING THE HANDLING OF                              Avenue SW, STOP 0237, Washington,                     Executive Order 12866 review.
                                                SPEARMINT OIL PRODUCED IN THE                           DC 20250–0237; Fax: (202) 720–8938; or                Additionally, because this rule does not
                                                FAR WEST                                                internet: http://www.regulations.gov. All             meet the definition of a significant
                                                                                                        comments should reference the                         regulatory action it does not trigger the
                                                ■ 1. The authority citation for part 985                document number and the date and                      requirements contained in Executive
                                                continues to read as follows:                           page number of this issue of the Federal              Order 13771. See OMB’s Memorandum
                                                    Authority: 7 U.S.C. 601–674.                        Register and will be made available for               titled ‘‘Interim Guidance Implementing
                                                                                                        public inspection in the Office of the                Section 2 of the Executive Order of
                                                ■ 2. In § 985.233, revise the section                                                                         January 30, 2017 titled ‘Reducing
                                                heading and paragraph (b) to read as                    Docket Clerk during regular business
                                                                                                        hours, or can be viewed at: http://                   Regulation and Controlling Regulatory
                                                follows:                                                                                                      Costs’ ’’ (February 2, 2017).
                                                                                                        www.regulations.gov. All comments
                                                                                                        submitted in response to this proposal                   This proposed rule has been reviewed
                                                § 985.233 Salable quantities and allotment
                                                percentages—2018–2019 marketing year.                   will be included in the record and will               under Executive Order 12988, Civil
                                                                                                        be made available to the public. Please               Justice Reform. This proposed rule is
                                                *      *     *    *     *                                                                                     not intended to have retroactive effect.
                                                   (b) Class 3 (Native) oil—a salable                   be advised that the identity of the
                                                                                                                                                                 The Act provides that administrative
                                                quantity of 1,357,315 pounds and an                     individuals or entities submitting the
                                                                                                                                                              proceedings must be exhausted before
                                                allotment percentage of 55 percent.                     comments will be made public on the
                                                                                                                                                              parties may file suit in court. Under
                                                                                                        internet at the address provided above.               section 608c(15)(A) of the Act, any
                                                  Dated: October 3, 2018.
                                                                                                        FOR FURTHER INFORMATION CONTACT:                      handler subject to an order may file
                                                Bruce Summers,
                                                                                                        Jennie M. Varela, Marketing Specialist,               with USDA a petition stating that the
                                                Administrator, Agricultural Marketing
                                                Service.
                                                                                                        or Christian D. Nissen, Regional                      order, any provision of the order, or any
                                                                                                        Director, Southeast Marketing Field                   obligation imposed in connection with
                                                [FR Doc. 2018–21844 Filed 10–5–18; 8:45 am]
                                                                                                        Office, Marketing Order and Agreement                 the order is not in accordance with law
                                                BILLING CODE 3410–02–P
                                                                                                        Division, Specialty Crops Program,                    and request a modification of the order
                                                                                                        AMS, USDA; Telephone: (863) 324–                      or to be exempted therefrom. A handler
                                                                                                        3375, Fax: (863) 291–8614, or email:                  is afforded the opportunity for a hearing
                                                DEPARTMENT OF AGRICULTURE
                                                                                                        Jennie.Varela@ams.usda.gov or                         on the petition. After the hearing, USDA
                                                Agricultural Marketing Service                          Christian.Nissen@ams.usda.gov.                        would rule on the petition. The Act
                                                                                                           Small businesses may request                       provides that the district court of the
                                                7 CFR Part 986                                          information on complying with this                    United States in any district in which
                                                                                                        regulation by contacting Richard Lower,               the handler is an inhabitant, or has his
                                                [Doc. No. AMS–SC–18–0019; SC18–986–1                    Marketing Order and Agreement                         or her principal place of business, has
                                                PR]                                                     Division, Specialty Crops Program,                    jurisdiction to review USDA’s ruling on
                                                                                                        AMS, USDA, 1400 Independence                          the petition, provided an action is filed
                                                Pecans Grown in the States of                           Avenue SW, STOP 0237, Washington,
                                                Alabama, Arkansas, Arizona,                                                                                   not later than 20 days after the date of
                                                                                                        DC 20250–0237; Telephone: (202) 720–                  the entry of the ruling.
                                                California, Florida, Georgia, Kansas,                   2491, Fax: (202)720–8938, or email:
                                                Louisiana, Missouri, Mississippi, North                                                                          This proposed rule would revise the
                                                                                                        Richard.Lower@ams.usda.gov.                           reporting requirements under the Order.
                                                Carolina, New Mexico, Oklahoma,
                                                                                                        SUPPLEMENTARY INFORMATION: This                       If approved, this action would require
                                                South Carolina, and Texas; Revision of
                                                                                                        proposed rule, pursuant to 5 U.S.C. 553,              all pecan handlers to report to the
                                                Reporting Requirements
                                                                                                        would amend regulations issued to                     Council the average handler price paid
                                                AGENCY:  Agricultural Marketing Service,                carry out a marketing order as defined                and average shelled pecan yield as part
                                                USDA.                                                   in 7 CFR 900.2(j). This proposed rule is              of its existing year-end report. This
                                                ACTION: Proposed rule.                                  issued under Marketing Agreement and                  information would be used by the
                                                                                                        Order No. 986, (7 CFR part 986),                      Council to provide statistical reports to
                                                SUMMARY:   This proposed rule invites                   regulating the handling of pecans grown               the industry and meet requirements
                                                comments on a proposal to revise the                    in the states of Alabama, Arkansas,                   under the Order. This proposal was
                                                reporting requirements under the                        Arizona, California, Florida, Georgia,                unanimously recommended by the
amozie on DSK3GDR082PROD with PROPOSALS1




                                                Federal marketing order for pecans. The                 Kansas, Louisiana, Missouri,                          Council at its January 24, 2018, meeting
                                                revised reporting requirements would                    Mississippi, North Carolina, New                      and affirmed at its April 17, 2018
                                                enable the American Pecan Council                       Mexico, Oklahoma, South Carolina, and                 meeting.
                                                (Council) to collect information from                   Texas. Part 986 (referred to as the                      Section 986.76 provides the authority
                                                handlers on the average handler price                   ‘‘Order’’) is effective under the                     to collect reports on the quantity of
                                                paid and the average shelled pecan                      Agricultural Marketing Agreement Act                  pecans handled and other pertinent
                                                yield. The Council would use this                       of 1937, as amended (7 U.S.C. 601–674),               information as specified by the Council.
                                                information to provide important                        hereinafter referred to as the ‘‘Act.’’ The           Section 986.78 provides, with the


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Document Created: 2018-10-06 00:59:29
Document Modified: 2018-10-06 00:59:29
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 December 10, 2018.
ContactBarry Broadbent, Senior Marketing Specialist, or Gary D. Olson, Regional Director, Northwest Marketing Field Office, Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA; Telephone: (503) 326-2724, Fax: (503) 326-7440, or email: [email protected] or [email protected]
FR Citation83 FR 50527 
CFR AssociatedMarketing Agreements; Oils and Fats; Reporting and Recordkeeping Requirements and Spearmint Oil

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