[Federal Register Volume 63, Number 10 (Thursday, January 15, 1998)]
[Notices]
[Pages 2360-2361]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-921]


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DEPARTMENT OF AGRICULTURE

Grain Inspection, Packers and Stockyards Administration


Pilot Program for Barge Inspection Services

AGENCY: Grain Inspection, Packers and Stockyards Administration 
(GIPSA).

ACTION: Notice.

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SUMMARY: GIPSA is announcing its plan to conduct a pilot program 
allowing more than one official agency to provide barge inspection 
services within a single geographic area.

EFFECTIVE DATE: March 1, 1998.

ADDRESSES: Neil E. Porter, Director, Compliance Division, STOP 3604, 
(Room 1647-S), 1400 Independence Ave. S.W., Washington, D.C. 20250-
3604.

FOR FURTHER INFORMATION CONTACT: Neil E. Porter, telephone 202-720-
8262.

SUPPLEMENTARY INFORMATION: Sections 7(f) and 7A of the United 
States Grain Standards Act, as amended, (Act) were amended by the 
U.S. Grain Standards Act Amendments of 1993 (Public Law 103-156) on 
November 24, 1993, to authorize GIPSA's Administrator to conduct 
pilot programs. These pilot programs would allow more than one 
official agency to provide official services within a single 
geographic area without undermining the declared policy of the Act. 
The purpose of pilot programs is to evaluate the impact of allowing 
more than one official agency to provide official services within a 
single geographic area.

    GIPSA considered several possible pilot programs as announced in 
the March 14, 1994, Federal Register (59 FR 11759) and the March 10, 
1995, Federal Register (60 FR 13113). In the September 27, 1995, 
Federal Register (60 FR 49828) GIPSA announced two pilot programs, 
``Timely Service'' and ``Open Season,'' starting on November 1, 1995, 
and ending on October 31, 1996. These two pilot programs were extended 
to October 31, 1999, as announced in the October 3, 1996, Federal 
Register (61 FR 51674).
    The March 14, 1994, Federal Register invited comments on a possible 
pilot program for barges on selected rivers or portions of rivers as 
defined by GIPSA.

[[Page 2361]]

This was one of five potential pilots being considered. GIPSA received 
41 comments. Seven specifically talked about the pilot programs for 
barges. Of those seven, five supported the program for barges, and two 
did not. Subsequently, GIPSA determined that this proposed pilot 
program was too narrow in scope for the initial round of pilot 
programs.
    Subsequently, some official agencies expressed their belief that a 
pilot program on the Mississippi River would be beneficial because 
there is some uncertainty over the boundary lines between official 
agencies along the Mississippi River. At one point GIPSA considered the 
boundary to be the middle of a river. Official agencies found this very 
difficult to work with, and GIPSA subsequently changed the boundary 
definition to the edge of a river. The middle of a river was viewed as 
an open area to be served by either contiguous official agency.
    In 1993, because of flooding along the Mississippi River, GIPSA 
granted a temporary exception for certain types of barge inspections 
along portions of the Illinois, Mississippi, and Missouri Rivers. This 
exception made the covered river areas open to any official agency for 
probe sampling and inspections to expedite barge traffic. GIPSA noted 
no problems resulting from this exception.
    In addition, some facilities located along the Mississippi River 
(Birds Point Terminal, Bertrand, Missouri; Peavey Company, St. Louis, 
Missouri; ADM, Winona, Minnesota; and Consolidated Grain, 
Caruthersville, Missouri) have received services from alternative 
official agencies under the existing pilot programs. There have been no 
significant problems resulting from the barge inspections on the 
Mississippi River under the existing pilot programs.
    GIPSA announced and invited comments on the following four possible 
pilot programs in the October 10, 1997, Federal Register (62 FR 52967).
    1. Barges on the Mississippi River may be sampled by probe by any 
official agency; or
    2. Barges on the Mississippi River may be sampled by probe at any 
location by the official agency designated to serve the geographic area 
within which the barge was loaded; or
    3. Barges on all rivers may be sampled by probe by any official 
agency; or
    4. Barges on all rivers may be sampled by probe at any location by 
the official agency designated to serve the geographic area within 
which the barge was loaded.
    Comments were due by November 15, 1997. GIPSA received seven 
comments: five from official agencies (two private and three States) 
and two from trade organizations. Four official agencies supported 
option 4 and one supported option 2. Both options 2 and 4 would limit 
the pilot program to the official agency serving the area within which 
the barge was loaded. Option 2 is further limited to the Mississippi 
River while option 4 covers all rivers nationwide. The official 
agencies cited their belief that options 2 and 4 would provide more 
flexibility to the grain industry, and their concern that options 1 and 
3 would weaken the official system. Allowing unrestricted access to 
grain barges would cause their fixed cost to rise as high inspection 
volume customers are lost and they are left with the responsibility of 
providing service to infrequent users of official services. This, they 
believe, would encourage official agencies to focus on serving high 
volume customers and encourage customers to look for better grades. 
Official agencies would tend to become national, contract with one 
large customer, and lose integrity and impartiality.
    One of the three State official agencies did not favor projects 
opening up agency geographic areas while the other two State official 
agencies supported option 2 and 4 respectively. The State official 
agencies noted other concerns including their limitations on travel, 
inability to add or decrease staff quickly, and their stronger 
neutrality and integrity base on non-profit status compared to most 
private official agencies.
    GIPSA recognizes these concerns, but believes that there are 
adequate safeguards in the proposed pilot programs.
    Two national grain trade organizations supported option 3. Option 3 
would allow barges, nationwide, to be probe-sampled by any official 
agency no matter where it is located or where it was loaded. These two 
organizations cited their belief that option 3 would provide grain 
handlers another option for obtaining timely official inspection 
services when the official agency serving them is busy. It would, they 
believe, provide better access to service, and foster official agency 
emphasis on quality and efficiency. They also believed that market 
driven-competition can effectively and efficiently address many of the 
factors that discourage use of the domestic official inspection system. 
They believe the other proposed pilot programs would be too limited in 
scope.
    After consideration of all relevant information, GIPSA is 
announcing that effective March 1, 1998, and ending October 31, 1999, 
concurrently with the two existing pilot programs, barges on all rivers 
may be sampled by probe by any official agency. During this time, GIPSA 
will monitor all pilot programs. Anytime, GIPSA determines that a pilot 
program is having a negative impact on the official system or is not 
working as intended, the pilot program may be modified or discontinued. 
If GIPSA determines that a customer violates the provisions of this 
pilot program, such customer will no longer be permitted to participate 
in the program.
    Official agencies participating in this pilot program must notify 
GIPSA's Compliance Division at 202-720-8525 or FAX 202-690-2755 any 
time they sample a barge outside their assigned geographic area.

    Authority: Pub. L. 94-582, 90 Stat. 2867, as amended (7 U.S.C. 
71 et seq.).

    Dated: January 9, 1998.
Neil E. Porter,
Director, Compliance Division.
[FR Doc. 98-921 Filed 1-14-98; 8:45 am]
BILLING CODE 3410-EN-P