[Federal Register Volume 63, Number 125 (Tuesday, June 30, 1998)]
[Rules and Regulations]
[Pages 35502-35505]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-16966]


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DEPARTMENT OF AGRICULTURE

Grain Inspection, Packers and Stockyards Administration

7 CFR Parts 800 and 801

RIN 0580-AA62


Official Testing Service for Corn Oil, Protein, and Starch

AGENCY: Grain Inspection, Packers and Stockyards Administration, USDA.

ACTION: Interim rule with request for comment.

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SUMMARY: The Grain Inspection, Packers and Stockyards Administration 
(GIPSA) is extending the use of the currently approved near-infrared 
spectroscopy (NIRS) analyzers in its official inspection program to 
include testing of corn for oil, protein, and starch content. GIPSA is 
incorporating by reference the Corn Refiners Association Method A-20, 
Starch method, into the regulations and will use it as the chemical 
reference method for determining the starch content in corn. To recover 
the cost of providing this service, GIPSA is establishing a fee 
identical to the fees already established for other near-infrared 
spectroscopy measurements (wheat protein and soybean oil and protein). 
GIPSA is offering this service to meet a market demand for reliable 
official testing procedures created by anticipated increases in high-
oil corn (HOC) production.

DATES: This interim rule is effective July 1, 1998. To be assured of 
consideration, written comments must be filed before July 30, 1998.

    The incorporation by reference of Analysis for Starch in Corn, 
Method A-20, 2nd revision, April 15, 1986, Standard Analytical Methods 
of the Member Companies of the Corn Refiners Association, Inc., listed 
in the rule is approved by the Director of the Federal Register as of 
July 1, 1998.

ADDRESSES: Written comments must be sent to Sharon Vassiliades, GIPSA, 
USDA, STOP 3649, Washington, DC 20250-3649; FAX to (202) 720-4628; or 
e-mail [email protected].

[[Page 35503]]

    All comments received will be made available for public inspection 
in Room 0623, USDA South Building, 1400 Independence Avenue, SW, 
Washington, DC, during business hours (7 CFR 1.27(b)).

FOR FURTHER INFORMATION CONTACT: John Giler, GIPSA, USDA, Room 1661-S, 
STOP 3632, Washington, DC, 20250-3632; telephone (202) 720-0252; or E-
mail [email protected].

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    This interim rule has been determined to be not significant for 
purposes of Executive Order 12866 and, therefore, has not been reviewed 
by OMB.

Executive Order 12988

    This interim rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. This action is not intended to have a retroactive 
effect. The USGSA provides in section 87g that no State or subdivision 
may require or impose any requirements or restrictions concerning the 
inspection, weighing, or description of grain under the USGSA. 
Otherwise, this rule will not preempt any State or local laws, 
regulations, or policies, unless they present an irreconcilable 
conflict with this rule. There are no administrative procedures which 
must be exhausted prior to any judicial challenge to the provisions of 
this rule.

Effect on Small Entities

    The Administrator of GIPSA has determined that this rule will not 
have a significant impact on a substantial number of small entities as 
defined in the Regulatory Flexibility Act (5 U.S.C. 601 et seq.).
    This rule establishes tolerances to expand the use of currently 
approved near-infrared spectroscopy analyzers to test corn for oil, 
protein, and starch content and to establish a fee identical to the 
fees already established for wheat protein and soybean oil and protein 
testing services. Currently, near-infrared spectroscopy analyzers are 
being used to determine protein in wheat and protein and oil in soybean 
in both domestic and export markets. There are 57 official agencies (49 
private entities, 8 States) designated by GIPSA to perform official 
grain inspection services. In addition, there are 8 delegated States. 
Most of the agencies could be considered small entities under Small 
Business Administration criteria.
    The extent to which these agencies will choose to provide this 
service is difficult to quantify because GIPSA is offering this service 
on a request basis and locations where service is requested 
infrequently may make arrangements with a neighboring agency to provide 
the service (7 CFR 800.196(g)(1)). GIPSA believes that offering this 
service would have a beneficial effect on those agencies electing to 
provide the service.
    For the 1998 crop year, the U.S. Feed Grains Council's production 
information estimated that approximately 1,250,000 acres were planted 
in high-oil corn, of which 40 to 50 percent is under contract. 
Currently, producers, grain handlers, exporters, and feedlot operators 
rely primarily on private laboratories to determine percent oil, 
protein, and starch in corn. Many of the producers, grain handlers, 
exporters, and feedlot operators may be considered small entities under 
Small Business criteria. Further, grain handlers and exporters are 
using this information to determine value and premiums. The extent to 
which these entities will request the official testing of corn for oil, 
protein, and starch or the impact of offering this service is difficult 
to quantify. GIPSA believes that corn producers, feedlot operators, 
grain handlers, and exporters will rely on the official system to 
provide reliable testing procedures and accurate results that the 
market can rely on to negotiate price, value, and premium.
    Fees will be charged for these official services. The fees charged 
by GIPSA will be $1.50 per test when the test is performed at the 
applicant's facility, $8.00 per test if the test is performed 
elsewhere, and $15.75 for an appeal. These fees are the same as fees 
charged for similar tests and their impact on applicants for services 
will vary depending upon usage since these tests are on a request 
basis.

Information Collection and Recordkeeping Requirements

    In accordance with the Paperwork Reduction Act of 1995, the 
recordkeeping and reporting burden imposed by Parts 800 and 801 was 
previously approved by OMB under control number 0580-0013 and will not 
be affected by this rule.

Background

    In its 1996-97 report, Value-Enhanced Corn Quality Report, dated 
April 1997, the U.S. Feed Grains Council estimated that value-enhanced 
corn (VEC) was produced on 2.3 to 2.8 million acres (representing 3.2 
to 3.8 percent of the U.S. harvested acreage). VEC includes waxy corn, 
high-lysine and other essential amino acid corn, hard endosperm corn, 
popcorn, sweet corn, white corn, and high-oil corn. The report projects 
the U.S. acreage of VEC to remain essentially unchanged, with the 
exception of high-oil corn, which is considered the fastest growing VEC 
produced in the marketplace. The report stated that more than 1 million 
acres of high-oil corn is projected for the 1998 crop year (up from 
virtually none in 1993), is expected to more than double (2.5 million 
acres) in 1999, and to reach 3 million acres by 2000. High-oil corn 
will continue to be a significant part of the VEC produced and traded 
in the marketplace.
    High-oil corn is used by livestock feeders to replace animal fat 
previously added to livestock rations and to help the animals gain 
weight more quickly. U.S. No. 2 corn typically averages less than 4.5 
percent oil content, while high-oil corn can contain up to 8.0 percent. 
At this time, depending on the oil content, high-oil corn premiums 
range from 5 to 24 cents per bushel. High-oil corn is almost 
exclusively grown through contracts with livestock feeders or companies 
that will export the grain.
    For several years, high-oil corn processors and producers have 
expressed an interest in having corn officially analyzed for oil, 
protein, and starch content. GIPSA's goal is to provide the corn 
industry with accurate results that the market can rely on to negotiate 
price, value, and premium.
    GIPSA investigated a near-infrared spectroscopy (NIRS) calibration 
for use with currently approved near-infrared transmittance (NIRT) 
analyzers using 92 corn samples representing oil, protein, and starch 
ranges of 4.0 to 8.5 percent, 8.0 to 12.0 percent, and 64 to 72 percent 
(dry basis), respectively. Calibration performance data were 
statistically analyzed for the sample set. The standard deviation of 
differences (SDD) between near-infrared spectroscopy oil values and 
official solvent oil extraction reference results, was 0.44. A 
comparison of NIRT analyzer protein values and official combustion 
nitrogen analyzer reference results yielded an SDD of 0.40. The SDD 
between near-infrared spectroscopy analyzer starch predictions and 
reference values obtained using Corn Refiners Association Method A-20, 
was 2.20. GIPSA has determined that this level of accuracy is 
commensurate with prospective official customer needs. To further 
assure the performance of the NIRT analyzer for corn measurements, 
GIPSA is establishing the maintenance tolerances for corn oil content 
at 0.20 percent mean deviation from the national standard 
NIRS instruments, which are referenced and calibrated to the FGIS 
solvent oil extraction method; for protein content at 0.30 
percent mean deviation from the national standard NIRS instruments, 
which are

[[Page 35504]]

referenced and calibrated to the Combustion method, AOAC International 
Method 992.23; and for starch content at 0.35 percent mean 
deviation from the national standard NIRS instruments, which are 
referenced and calibrated to the Starch method, Corn Refiners 
Association Method A-20.
    This rule incorporates by reference the Corn Refiners Association 
Method A-20, Starch method, into the regulations. GIPSA will use the 
Starch method as the chemical reference method for determining the 
starch content in corn.
    GIPSA is announcing the implementation of corn oil, protein, and 
starch testing services as an official criterion effective July 1, 
1998. Upon a request for service, official inspection personnel will 
determine corn oil, protein, and starch under the authority of the 
USGSA. Percent oil, protein, and starch will be reported to the nearest 
tenth percent on a dry matter basis (zero moisture basis) unless 
another moisture basis is requested.
    GIPSA is required to collect fees for providing official testing 
service to cover, as nearly as practicable, GIPSA's costs for 
performing the service, including related administrative and 
supervisory costs. Testing procedures and time necessary to determine 
oil, protein, and starch in corn using the approved NIRT analyzers are 
the same as those required for NIRT wheat protein or NIRT soybean oil 
and protein determinations. Therefore, GIPSA has decided to collect 
fees identical to the fees established for NIRT wheat protein or NIRT 
soybean oil and protein testing services. These fees will be $1.50 per 
test when the service is performed at an applicant's facility in an 
onsite FGIS laboratory; $8.00 per test when an original inspection 
service is performed at a location other than an applicant's facility 
in an FGIS laboratory; and $15.75 per test when an appeal inspection 
service is performed at a location other than an applicant's facility 
in an FGIS laboratory.
    GIPSA is revising Sec. 800.71 to establish fees for corn oil, 
protein, and starch testing services.
    GIPSA is also revising Sec. 801.7 to establish tolerances for corn 
oil, protein, and starch analyzers.
    Pursuant to 5 U.S.C. 553, it is found and determined upon good 
cause that it is unnecessary and contrary to public interest to give 
preliminary notice prior to putting this rule into effect and that good 
cause exists for not postponing the effective date of this rule until 
30 days after publication in the Federal Register because: (1) this 
rule merely expands utilization of currently approved technology to 
offer additional services to the industry and establishes tolerances 
for that service; (2) the corn market year begins July 1, 1998, and the 
service should be in effect to allow its use at the beginning of the 
marketing year; and (3) this rule provides a 30-day opportunity for 
comment and all written comments timely received will be considered 
prior to finalization of the rule.
    A 30-day comment period is deemed appropriate because the corn 
market year begins on July 1, 1998, and this rule should be made final 
as soon as possible during the beginning of the 1998 year.

List of Subjects in 7 CFR Parts 800 and 801

    Grains, Incorporation by reference.

    For the reasons set out in the preamble, 7 CFR Parts 800 and 801 
are amended as follows:

PART 800--GENERAL REGULATIONS

    1. The authority citation for Part 800 continues to read as 
follows:

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

    2. Section 800.71 is amended by revising Table 1(2) (i through x) 
and adding (xi) and revising Table 2(1)(v) and (2)(ii) in Schedule A of 
paragraph (a) to read as follows:


Sec. 800.71  Fees Assessed by the Service.

    (a) * * *

Schedule A.--Fees for Official Inspection and Weighing Services 
Performed in the United States

                             Table 1.--* * *                            
(2) * * *                                                               
(i) Aflatoxin (other than Thin Layer Chromatography)..........     $8.50
(ii) Aflatoxin (Thin Layer Chromatography method).............     20.00
(iii) Corn oil, protein, and starch (one or any combination)..      1.50
(iv) Soybean protein and oil (one or both)....................      1.50
(v) Wheat protein (per test)..................................      1.50
(vi) Sunflower oil (per test).................................      1.50
(vii) Vomitoxin (qualitative).................................      7.50
(viii) Vomitoxin (quantitative)...............................     12.50
(ix) Waxy corn (per test).....................................      1.50
(x) Fees for other tests not listed above will be based on the          
 lowest noncontract hourly rates..............................          
  (xi) Other services                                                   
    (a) Class Y Weighing (per carrier)                                  
      (1) Truck/container.....................................       .30
      (2) Railcar.............................................      1.25
      (3) Barge...............................................      2.50
                                                                        

* * * * *

                             Table 2.--* * *                            
(1) * * *                                                               
  (v) Additional tests (excludes sampling)                              
    (a) Aflatoxin (per test--other than TLC method)...........    $25.50
    (b) Aflatoxin (per test--TLC method)......................    101.50
    (c) Corn oil, protein, and starch (one or any combination)      8.00
    (d) Soybean protein and oil (one or both).................      8.00
    (e) Wheat protein (per test)..............................      8.00
    (f) Sunflower oil (per test)..............................      8.00
    (g) Vomitoxin (qualitative)...............................     26.00
    (h) Vomitoxin (quantitative)..............................     31.00
    (i) Waxy corn (per test)..................................      9.25
    (j) Canola (per test--00 dip test)........................      9.25
    (k) Pesticide Residue Testing \3\.........................          
      (1) Routine Compounds (per sample)......................    200.00
      (2) Special Compounds (per service representative)......    100.00
  (l) Fees for other tests not listed above will be based on            
   the lowest noncontract hourly rate from Table 1.                     
(2) * * *                                                               
  (ii) Additional tests (assessed in addition to all other              
   applicable fees)                                                     
    (a) Aflatoxin (per test, other than TLC)..................    $25.75
    (b) Aflatoxin (TLC).......................................    111.00
    (c) Corn oil, protein, and starch (one or any combination)     15.75
    (d) Soybean protein and oil (one or both).................     15.75
    (e) Wheat protein (per test)..............................     15.75
    (f) Sunflower oil (per test)..............................     15.75
    (g) Vomitoxin (per test--qualitative).....................     36.00
    (h) Vomitoxin (per test--quantitative)....................     41.00
    (i) Vomitoxin (per test--HPLC Board Appeal)...............    128.00
    (j) Pesticide Residue Testing \3\.........................          
      (1) Routine Compounds (per sample)......................    200.00
      (2) Special Compounds (per service representative)......    100.00
    (k) Fees for other tests not listed above will be based on          
     the lowest noncontract hourly rate from Table 1.                   
                                                                        
                 *        *        *        *        *                  
                                                                        
*        *        *        *        *                                   
\3\ If performed outside of normal business, 1\1/2\ times the applicable
  unit fee will be charged.                                             

* * * * *

PART 801--[AMENDED]

    3. The authority for Part 801 continues to read:

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

    4. Section 801.7 is revised to read as follows:

[[Page 35505]]

Sec. 801.7  Reference methods and tolerances for near-infrared 
spectroscopy (NIRS) analyzers.

    (a) Reference methods. (1) The chemical reference protein 
determinations used to reference and calibrate official NIRS 
instruments shall be performed in accordance with ``Comparison of 
Kjeldahl Method for Determination of Crude Protein in Cereal Grains and 
Oilseeds with Generic Combustion Method: Collaborative Study,'' July/
August 1993, Ronald Bicsak, Journal of AOAC International Vol. 76, No. 
4, 1993, and subsequently approved by the AOAC International as the 
Combustion method, AOAC International Method 992.23. This incorporation 
by reference was approved by the Director of the Federal Register in 
accordance with 5 U.S.C. 552(a) and 1 CFR part 51. Copies may be 
obtained from Director, Technical Services Division, Federal Grain 
Inspection Service, 10383 North Executive Hills Blvd., Kansas City, MO 
64153-1394. Copies may be inspected at the above address or at the 
Office of the Federal Register, 800 North Capitol Street, NW., 7th 
Floor, Suite 700, Washington, DC 20408.
    (2) The chemical reference starch determination used to reference 
and calibrate official NIRS instruments shall be performed in 
accordance with the Corn Refiners Association Method A-20, Analysis for 
Starch in Corn, Second revision, April 15, 1986, Standard Analytical 
Methods of the Member Companies of the Corn Refiners Association, Inc. 
This incorporation by reference was approved by the Director of the 
Federal Register in accordance with 5 U.S.C. 552(a) and 1 CFR part 51. 
Copies may be obtained from Director, Technical Services Division, 
Federal Grain Inspection Service, 10383 North Executive Hills Blvd., 
Kansas City, MO 64153-1394. Copies may be inspected at the above 
address or at the Office of the Federal Register, 800 North Capitol 
Street, NW., 7th Floor, Suite 700, Washington, DC 20408.
    (b) Tolerances (1) NIRS wheat protein analyzers. The maintenance 
tolerances for the NIRS analyzers used in performing official 
inspections for determination of wheat protein content shall be 
0.15 percent mean deviation from the national standard NIRS 
instruments, which are referenced and calibrated to the Combustion 
method, AOAC International Method 992.23.
    (2) NIRS soybean oil and protein analyzers. The maintenance 
tolerances for the NIRS analyzers used in performing official 
inspections for determination of soybean oil shall be 0.20 
percent mean deviation from the national standard NIRS instruments, 
which are referenced and calibrated to the FGIS solvent oil extraction 
method; and for determination of protein content shall be 
0.20 percent mean deviation from the national standard NIRS 
instruments, which are referenced and calibrated to the Combustion 
method, AOAC International Method 992.23.
    (3) NIRS corn oil, protein, and starch analyzers. The maintenance 
tolerances for the NIRS analyzers used in performing official 
inspections for determination of corn oil shall be 0.20 
percent mean deviation from the national standard NIRS instruments, 
which are referenced and calibrated to the FGIS solvent oil extraction 
method; for determination of protein content shall be 0.30 
percent mean deviation from the national standard NIRS instruments, 
which are referenced and calibrated to the Combustion method, AOAC 
International Method 992.23; and for determination of starch content 
shall be 0.35 percent mean deviation from the national 
standard NIRS instruments, which are referenced and calibrated to the 
Starch method, Corn Refiners Association Method A-20.

    Dated: June 19, 1998.
David R. Shipman,
Acting Administrator, Grain Inspection, Packers and Stockyards 
Administration.
[FR Doc. 98-16966 Filed 6-29-98; 8:45 am]
BILLING CODE 3410-EN-P