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Proposed Rules

Federal Register
Vol. 82, No. 179
Monday, September 18, 2017

This section of the FEDERAL REGISTER
contains notices to the public of the proposed
issuance of rules and regulations. The
purpose of these notices is to give interested
persons an opportunity to participate in the
rule making prior to the adoption of the final
rules.

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 927
[Doc. No. AMS–SC–17–0045; SC17–927–1
PR]

Pears Grown in Oregon and
Washington; Increased Assessment
Rate for Processed Pears
Agricultural Marketing Service,
USDA.
ACTION: Proposed rule.
AGENCY:

This proposed rule would
implement a recommendation from the
Processed Pear Committee (Committee)
to increase the assessment rate
established for the 2017–2018 and
subsequent fiscal periods from $7.00 to
$8.00 per ton of ‘‘summer/fall’’ pears for
canning. The Committee locally
administers the marketing order and is
comprised of growers, handlers, and
processors of processed pears grown in
Oregon and Washington. Assessments
upon processed pear handlers are used
by the Committee to fund reasonable
and necessary expenses of the marketing
order. The fiscal period begins July 1
and ends June 30. The assessment rate
would remain in effect indefinitely
unless modified, suspended or
terminated.

SUMMARY:

Comments must be received by
October 3, 2017.
ADDRESSES: Interested persons are
invited to submit written comments
concerning this proposed rule.
Comments must be sent to the Docket
Clerk, Marketing Order and Agreement
Division, Specialty Crops Program,
AMS, USDA, 1400 Independence
Avenue SW., STOP 0237, Washington,
DC 20250–0237; Fax: (202) 720–8938; or
internet: http://www.regulations.gov.
Comments should reference the
document number and the date and
page number of this issue of the Federal
Register and will be made available for
public inspection in the Office of the
Docket Clerk during regular business

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hours, or can be viewed at: http://
www.regulations.gov. All comments
submitted in response to this proposed
rule will be included in the record and
will be made available to the public.
Please be advised that the identity of the
individuals or entities submitting the
comments will be made public on the
internet at the address provided above.
FOR FURTHER INFORMATION CONTACT:
Teresa Hutchinson or Gary Olson,
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].
Small businesses may request
information on complying with this
regulation by contacting Richard Lower,
Marketing Order and Agreement
Division, Specialty Crops Program,
AMS, USDA, 1400 Independence
Avenue SW., STOP 0237, Washington,
DC 20250–0237; Telephone: (202) 720–
2491, Fax: (202) 720–8938, or Email:
[email protected].
SUPPLEMENTARY INFORMATION: This
proposed rule is issued under Marketing
Order No. 927, as amended (7 CFR part
927), regulating the handling of pears
grown in Oregon and Washington,
hereinafter referred to as the ‘‘order.’’
The order is effective under the
Agricultural Marketing Agreement Act
of 1937, as amended (7 U.S.C. 601–674),
hereinafter referred to as the ‘‘Act.’’
The Department of Agriculture
(USDA) is issuing this proposed rule in
conformance with Executive Orders
13563, and 13175.
This proposed rule does not meet the
definition of a significant regulatory
action contained in section 3(f) of
Executive Order 12866, and is not
subject to review by the Office of
Management and Budget (OMB).
Additionally, because this proposed
rule does not meet the definition of a
significant regulatory action, it does not
trigger the requirements contained in
Executive Order 13771. See OMB’s
Memorandum titled, ‘‘Interim Guidance
Implementing Section 2 of the Executive
Order of January 30, 2017, titled,
‘Reducing Regulation and Controlling
Regulatory Costs’ ’’ (February 2, 2017).
This proposed rule has been reviewed
under Executive Order 12988, Civil
Justice Reform. Under the order now in
effect, Oregon and Washington pear

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handlers are subject to assessments.
Funds to administer the order are
derived from such assessments. It is
intended that the assessment rate, as
proposed herein, would be applicable to
all assessable ‘‘summer/fall’’ pears for
canning beginning July 1, 2017, and
continue until amended, suspended, or
terminated.
The Act provides that administrative
proceedings must be exhausted before
parties may file suit in court. Under
section 608c(15)(A) of the Act, any
handler subject to an order may file
with USDA a petition stating that the
order, any provision of the order, or any
obligation imposed in connection with
the order is not in accordance with law
and request a modification of the order
or to be exempted therefrom. Such
handler is afforded the opportunity for
a hearing on the petition. After the
hearing, USDA would rule on the
petition. The Act provides that the
district court of the United States in any
district in which the handler is an
inhabitant, or has his or her principal
place of business, has jurisdiction to
review USDA’s ruling on the petition,
provided an action is filed not later than
20 days after the date of the entry of the
ruling.
This proposed rule would increase
the assessment rate established for the
Committee for the 2017–2018 and
subsequent fiscal periods from $7.00 to
$8.00 per ton for ‘‘summer/fall’’ pears
for canning handled under the order.
The assessment rate for ‘‘winter’’ and
‘‘other’’ pears for processing would
remain unchanged at zero.
The order provides authority for the
Committee, with the approval of USDA,
to formulate an annual budget of
expenses and collect assessments from
handlers to administer the program. The
members of the Committee are growers,
handlers, and processors of Oregon and
Washington processed pears. They are
familiar with the Committee’s needs,
and with the costs for goods and
services in their local area, and are thus
in a position to formulate an appropriate
budget and assessment rate. The
assessment rate is formulated and
discussed in a public meeting. Thus, all
directly affected persons have an
opportunity to participate and provide
input.
For the 2012–2013 and subsequent
fiscal periods, the Committee
recommended, and the USDA approved,

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Federal Register / Vol. 82, No. 179 / Monday, September 18, 2017 / Proposed Rules
the following three base rates of
assessment: (a) $7.00 per ton for any or
all varieties or subvarieties of pears for
canning classified as ‘‘summer/fall’’,
excluding pears for other methods of
processing; (b) $0.00 per ton for any or
all varieties or subvarieties of pears for
processing classified as ‘‘winter’’; and
(c) $0.00 per ton for any or all varieties
or subvarieties of pears for processing
classified as ‘‘other’’. The assessment on
‘‘summer/fall’’ pears applies only to
pears for canning and excludes pears for
other methods of processing defined in
§ 927.15, as pears for concentrate,
freezing, dehydrating, pressing, or in
any other way to convert pears into a
processed product. This rate continues
in effect from fiscal period to fiscal
period unless modified, suspended, or
terminated by USDA upon
recommendation and information
submitted by the Committee or other
information available to USDA.
The Committee met on May 31, 2017,
and unanimously recommended
expenditures of $800,150 for the 2017–
2018 fiscal period. In comparison, the
previous fiscal period’s budgeted
expenditures were $855,268. The
Committee also unanimously
recommended an assessment rate of
$8.00 per ton for ‘‘summer/fall’’ pears
for canning. The recommended
assessment rate of $8.00 is $1.00 higher
than the rate currently in effect.
The major expenditures
recommended by the Committee for the
2017–2018 fiscal period include
$605,606 for promotion and paid
advertising, $147,694 for research,
$25,000 for administration, and $21,850
for Committee expenses. In comparison,
major expenditures for the 2016–2017
fiscal period included $682,130 for
promotion and paid advertising,
$127,288 for research, $25,000 for
administration, and $20,850 for
Committee expenses.
Committee members estimate the
2017–2018 crop to be 100,000 tons,
which would be less than the 2016–
2017 production of 103,000 tons by
3,000 tons. Pear production tends to
fluctuate due to the effects of weather,
pollination, and tree health. Because of
the anticipated smaller crop, the
Committee recommended to both lower
budgeted expenses and increase the
assessment rate for ‘‘summer/fall’’ pears
in order to align assessment income
with expenses.
The Committee’s recommended
assessment rate was derived by dividing
the 2017–2018 anticipated expenses by
the expected shipments of ‘‘summer/
fall’’ pears for canning, while also taking
into account interest income and the
Committee’s monetary reserve.

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Shipments of ‘‘summer/fall’’ pears for
canning for 2017–2018 are estimated at
100,000 tons, which should provide
$800,000 (100,000 tons × $8.00 per ton)
in assessment income. The projected
revenue from handler assessments,
together with funds from interest
income, would be adequate to cover the
2017–2018 budgeted expenses of
$800,150.
Section 927.42(a) of the order
authorizes the Committee to carry over
excess funds into subsequent fiscal
periods as a reserve, provided that funds
do not exceed approximately one year’s
operational expenses. The Committee
expects its monetary reserve, which was
estimated to be $544,990 at the end of
the 2016–2017 fiscal period, to remain
unchanged during the 2017–2018 fiscal
period. That amount would be within
the provisions of the order and would
provide the Committee with greater
ability to absorb fluctuations in
assessment income and expenses into
the future.
The proposed assessment rate would
continue in effect indefinitely unless
modified, suspended, or terminated by
USDA upon recommendation and
information submitted by the
Committee or other available
information.
Although this assessment rate would
be in effect for an indefinite period, the
Committee will continue to meet prior
to or during each fiscal period to
recommend a budget of expenses and
consider recommendations for
modification of the assessment rate. The
dates and times of Committee meetings
are available from the Committee or
USDA. Committee meetings are open to
the public and interested persons may
express their views at these meetings.
USDA would evaluate Committee
recommendations and other available
information to determine whether
modification of the assessment rate is
needed. Further rulemaking would be
undertaken as necessary. The
Committee’s 2017–2018 budget, and
those for subsequent fiscal periods,
would be reviewed and, as appropriate,
approved by USDA.
Initial Regulatory Flexibility Analysis
Pursuant to requirements set forth in
the Regulatory Flexibility Act (RFA) (5
U.S.C. 601–612), the Agricultural
Marketing Service (AMS) has
considered the economic impact of this
proposed rule on small entities.
Accordingly, AMS has prepared this
initial regulatory flexibility analysis.
The purpose of the RFA is to fit
regulatory actions to the scale of
businesses subject to such actions in
order that small businesses will not be

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unduly or disproportionately burdened.
Marketing orders issued pursuant to the
Act, and the rules issued thereunder, are
unique in that they are brought about
through group action of essentially
small entities acting on their own
behalf.
There are approximately 1,200
growers of processed pears in the
regulated production area and
approximately 50 processed pear
handlers subject to regulation under the
order. Small agricultural producers are
defined by the Small Business
Administration (SBA)(13 CFR 121.201)
as those having annual receipts of less
than $750,000, and small agricultural
service firms are defined as those whose
annual receipts are less than $7,500,000.
According to the Noncitrus Fruits and
Nuts 2016 Summary issued in June 2017
by the National Agricultural Statistics
Service, the total farm-gate value of
‘‘summer/fall’’ processed pears grown in
Oregon and Washington for 2016 was
$27,874,000. Based on the number of
‘‘summer/fall’’ processed pear growers
in the Oregon and Washington, the
average gross revenue for each grower
can be estimated at approximately
$23,228 ($27,874,000 divided by 1,200).
Furthermore, based on Committee
records, the Committee has estimated
that all of the Oregon-Washington pear
handlers currently ship less than
$7,500,000 worth of processed pears
each on an annual basis. From this
information, it is concluded that the
majority of growers and handlers of
Oregon and Washington processed pears
may be classified as small entities.
This proposed rule would increase
the assessment rate established for the
Committee, and collected from
handlers, for the 2017–2018 and
subsequent fiscal periods from $7.00 to
$8.00 per ton for ‘‘summer/fall’’ pears
for canning. The Committee
unanimously recommended 2017–2018
expenditures of $800,150 and an
assessment rate of $8.00 per ton for
‘‘summer/fall’’ pears for canning. The
proposed assessment rate of $8.00 is
$1.00 higher than the rate established
for the 2012–2013 fiscal period. Because
of the anticipated smaller crop, the
Committee recommended to both lower
budgeted expenses and increase the
assessment rate for ‘‘summer/fall’’ pears
in order to align assessment income
with expenses.
The 2017–2018 estimate of ‘‘summer/
fall’’ pears for canning is 100,000 tons.
At the proposed $8.00 per ton
assessment rate, the Committee
anticipates that assessment income of
approximately $800,000, along with
interest income, would be adequate to
cover budgeted expenses for the 2017–

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2018 fiscal period of $800,150. With the
proposed assessment rate and budgeted
expense level, the Committee does not
anticipate utilizing any funds from the
monetary reserve. As such, reserve
funds are estimated to be $544,990 at
the end of the 2017–2018 fiscal period
on June 30, 2018. That reserve level is
within the maximum permitted by the
order of approximately one fiscal
period’s operational expenses
(§ 927.42(a)).
The major expenditures
recommended by the Committee for the
2017–2018 fiscal period include
$605,606 for promotion and paid
advertising; $147,694 for research;
$25,000 for administration; and $21,850
for Committee expenses. In comparison,
major expenditures for the 2016–2017
fiscal period included $682,130 for
promotion and paid advertising;
$127,288 for research; $25,000 for
administration; and $20,850 for
Committee expenses.
The Committee discussed alternatives
to this action, including recommending
alternative expenditure levels and
assessment rates. Although lower
assessment rates were considered, none
were selected because they would not
have generated sufficient income to
administer the order. Similarly, the
Committee did not recommend lower
levels of budgeted expenditures than
proposed herein because it would have
reduced the effectiveness of the
program.
A review of historical data and
preliminary information pertaining to
the upcoming fiscal period indicates
that the grower price for the 2017–2018
fiscal period could range between $325
and $346 per ton of ‘‘summer/fall’’
processed pears. Therefore, the
estimated assessment revenue for the
2017–2018 fiscal period, as a percentage
of total grower revenue could range
between 2.31 and 2.46 percent.
This action would increase the
assessment obligation imposed on
handlers. While assessments impose
some additional costs on handlers, the
costs are minimal and uniform on all
handlers. Some of the additional costs
may be passed on to growers. However,
these costs would be offset by the
benefits derived by the operation of the
order.
In addition, the Committee’s meeting
was widely publicized throughout the
processed pear industry and all
interested persons were invited to
attend the meeting and participate in
Committee deliberations on all issues.
Like all Committee meetings, the May
31, 2017, meeting was a public meeting
and all entities, both large and small,
were able to express views on this issue.

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Finally, interested persons are invited to
submit comments on this proposed rule,
including the regulatory and
informational impacts of this action on
small businesses.
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. 0581–0189 (Generic
Fruit Crops). No changes in those
requirements as a result of this action
are necessary. Should any changes
become necessary, they would be
submitted to OMB for approval.
This proposed rule would not impose
any additional reporting or
recordkeeping requirements on either
small or large processed pear 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.
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 15-day comment period is provided
to allow interested persons to respond
to this proposed rule. Fifteen days is
deemed appropriate because handlers
are aware of this action, which was
unanimously recommended by the
Committee at a public meeting.
List of Subjects in 7 CFR Part 927
Marketing agreements, Pears,
Reporting and recordkeeping
requirements.
For the reasons set forth in the
preamble, 7 CFR part 927 is proposed to
be amended as follows:
PART 927—PEARS GROWN IN
OREGON AND WASHINGTON
1. The authority citation for 7 CFR
part 927 continues to read as follows:

■

Authority: 7 U.S.C. 601–674.

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Subpart A—[AMENDED]
2. Designate the subpart labeled
‘‘Order Regulating Handling’’ as subpart
A.

■

Subpart B—[Administrative
Provisions]
3. Designate the subpart labeled
‘‘Rules and Regulations’’ as subpart B
and revise the heading as shown above.
■ 4. Amend § 927.237 by revising the
introductory text and paragraph (a) to
read as follows:
■

§ 927.237
rate.

Processed pear assessment

On and after July 1, 2017, the
following base rates of assessment for
pears for processing are established for
the Processed Pear Committee:
(a) $8.00 per ton for any or all
varieties or subvarieties of pears for
canning classified as ‘‘summer/fall’’
excluding pears for other methods of
processing;
*
*
*
*
*
Dated: September 12, 2017.
Bruce Summers,
Acting Administrator, Agricultural Marketing
Service.
[FR Doc. 2017–19615 Filed 9–15–17; 8:45 am]
BILLING CODE 3410–02–P

ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 52
[EPA–R06–OAR–2017–0435; FRL–9967–51–
Region 6]

Approval and Promulgation of
Implementation Plans; Arkansas;
Revisions to Minor New Source Review
Program
Environmental Protection
Agency (EPA).
ACTION: Proposed rule.
AGENCY:

Pursuant to the Federal Clean
Air Act (CAA or the Act), the
Environmental Protection Agency (EPA)
is proposing to approve revisions to the
Arkansas State Implementation Plan
(SIP) minor New Source Review (NSR)
program submitted on July 26, 2010,
and March 24, 2017, including
supplemental information provided on
November 30, 2015, May 26, 2016, and
July 27, 2017. Specifically, we are
proposing to approve revisions that
revise the minor NSR permitting
thresholds and de minimis levels, as
well as, additional non-substantive
revisions. This proposed action is
consistent with the requirements of
section 110 of the CAA.

SUMMARY:

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