[Federal Register Volume 63, Number 153 (Monday, August 10, 1998)]
[Proposed Rules]
[Pages 42593-42596]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-21363]


 ========================================================================
 Proposed Rules
                                                 Federal Register
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 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.
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  Federal Register / Vol. 63, No. 153 / Monday, August 10, 1998 / 
Proposed Rules  

[[Page 42593]]


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DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection Service

9 CFR Parts 93, 94, and 130

[Docket No. 98-070-2]


Closure of Harry S Truman Animal Import Center

AGENCY: Animal and Plant Health Inspection Service, USDA.

ACTION: Proposed rule.

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SUMMARY: We are proposing to close the Harry S Truman Animal Import 
Center (HSTAIC) and to amend the animal import regulations to remove 
all provisions related to HSTAIC. The facility, which is used for high 
risk imports, such as ruminants from countries where foot-and-mouth 
disease exists, is chronically under used and has never generated 
enough revenue to be self-sufficient. Closing HSTAIC would eliminate a 
drain on government resources, which does not appear to be justified by 
demand.

DATES: Consideration will be given only to comments received on or 
before October 9, 1998.

ADDRESSES: Please send an original and three copies of your comments to 
Docket No. 98-070-2, Regulatory Analysis and Development, PPD, APHIS, 
suite 3C03, 4700 River Road Unit 118, Riverdale, MD 20737-1238. Please 
state that your comments refer to Docket No. 98-070-2. Comments 
received may be inspected at USDA, room 1141, South Building, 14th 
Street and Independence Avenue SW., Washington, DC, between 8 a.m. and 
4:30 p.m., Monday through Friday, except holidays. Persons wishing to 
inspect comments are requested to call ahead on (202) 690-2817 to 
facilitate entry into the comment reading room.

FOR FURTHER INFORMATION CONTACT: Dr. Gary Colgrove, Chief Staff 
Veterinarian, National Center for Import and Export, VS, APHIS, 4700 
River Road Unit 38, Riverdale, MD 20737-1231; (301) 734-3276; or e-
mail: [email protected].

SUPPLEMENTARY INFORMATION:

Background

    The Harry S Truman Animal Import Center (HSTAIC) is an offshore, 
maximum biosecurity animal import facility owned and operated by the 
Animal and Plant Health Inspection Service (APHIS), an agency of the 
United States Department of Agriculture. It is the only facility of its 
kind in the United States.
    HSTAIC was dedicated in 1979. Authorized by statute in 1970 (The 
Act of May 6, 1970, 7 U.S.C. 135-135b), HSTAIC was designed to be used 
as a quarantine facility for ruminants and swine from countries where 
high-risk diseases, such as foot-and-mouth disease (FMD) or rinderpest, 
hog cholera, African swine fever, and swine vesicular disease, exist. 
Animals are consigned to the facility upon arrival in the United 
States, and then tested and monitored for a period of time to ensure 
their freedom from disease. The full cost of operating HSTAIC was to be 
paid for by the importers using the facility.
    At the time HSTAIC opened, demand for breeding stock, particularly 
cattle, from high disease-risk countries was projected to grow. It was 
anticipated that HSTAIC would be fully utilized--with at least three 
importations per year--and costs would be fully covered.
    These assumptions turned out to be wrong. From the time it opened, 
HSTAIC has never been fully used. Only animals from countries where FMD 
or rinderpest exists have been imported through the facility, and on 
average, there has been only one importation per year. Since 1979, a 
total of 633 cattle, 574 swine, 460 goats and sheep, and 4,596 camelids 
have been imported through HSTAIC. The last importation of cattle 
through HSTAIC occurred in 1985. Since 1995, the only animals imported 
through HSTAIC have been camelids.
    As a result of chronic under use, HSTAIC has never generated enough 
revenue to be self-sufficient. During periods when importers are not 
using HSTAIC, APHIS must keep the facility staffed, provide electric 
and telephone service, and cover other minimal operational and 
maintenance costs. These costs ranged from $98,000 in FY 1995 to 
$385,000 in FY 1997, averaging $219,000 per year. We tried in the early 
1990s to curtail losses by amending our HSTAIC regulations. We 
eliminated the ``tier system,'' which gave preference to certain types 
of animals. We also instituted a requirement that applicants deposit 
$32,000 with their application. We draw on the winning applicant's 
deposit to cover the cost of preparing and maintaining HSTAIC in 
readiness for that applicant's animals. Together, these changes 
encouraged more importations through HSTAIC and shifted some of the 
cost of preparing the facility to receive animals from APHIS to the 
winning importer. In turn, this encouraged importers to carry through 
and use the facility. However, these changes did not eliminate APHIS' 
losses, but only reduced them. Since 1991, we have lost $1.6 million 
keeping HSTAIC open for importers.
    We do not anticipate any increase in demand to use HSTAIC. Instead, 
we expect demand to continue falling. There has never been any demand 
to use HSTAIC for animals from regions other than those where FMD or 
rinderpest exists. In 1970, only 10 countries or territories were 
recognized as free from FMD and rinderpest. As of January 1998, 51 
countries had been recognized as free of these two diseases. In 
addition, we recently amended our animal import regulations to 
recognize regions, not only countries, as free of disease. Over time, 
more and more regions, or geographical areas, will be able to acquire 
status as FMD and rinderpest free. As a result, importers can import 
animals from a growing number of sources without needing to use HSTAIC.
    In addition, since HSTAIC opened, international trade in live 
animals for breeding purposes has fallen. Instead, germplasm--embryos 
and semen--is imported for breeding. Using germplasm is less expensive 
and more reliable. Germplasm can be imported even from high-risk 
countries without using HSTAIC.
    We have considered keeping HSTAIC open. Currently, importers who 
use the facility must pay APHIS approximately $1 million per 
importation to cover the cost of operating the facility during the time 
the animals are in quarantine. This figure can only increase. HSTAIC 
needs urgent and substantial repairs to keep it operational and in 
compliance with environmental and other requirements.

[[Page 42594]]

We have already spent $1 million to repair and modify an incinerator, 
test emissions, and replace stack pipes in order to meet environmental 
standards set by the U.S. Environmental Protection Agency (EPA) and the 
Florida Department of Environmental Protection (FDEP). Even with these 
repairs, we cannot operate the HSTAIC incinerators at full capacity: if 
we did so, we would be in violation of EPA and FDEP standards. Such 
limited incinerator capacity means we cannot quickly dispose of 
diseased animals, should that need arise.
    We estimate that HSTAIC urgently needs approximately $4.5 million 
worth of additional repairs and upgrades for which APHIS does not have 
an appropriation. Having this work done would significantly increase 
the already substantial fees for use of HSTAIC if the cost of the 
repairs and upgrades were to be recovered from users. The required work 
includes repairing and upgrading the facility's waste water treatment 
facility; replacing a generator, an incinerator, the roof, and 
underground fuel storage tanks; and upgrading the fire suppression/
alarm, heating, ventilation, and air conditioning systems. Our highest 
priority is replacing the wastewater treatment facility, at an 
estimated cost of $1.2 million. If we do not do this work soon, APHIS 
may face significant fines from EPA and FDEP.
    Recently, HSTAIC has been used mainly by persons importing llamas 
and alpacas into the United States. These animals are currently 
imported mainly for animal exhibits and as pets. At some time in the 
future, enough llamas and alpacas will have been imported into the 
United States that animals bred in this country will satisfy demand, 
and importations will drop.
    At this time, the only way importers can import animals directly 
into the United States from regions where high-risk diseases exist is 
through HSTAIC. Closing HSTAIC would stop these importations entirely. 
We are therefore looking into other possible means by which these 
animals can be safely imported into the United States. If it appears 
that high-risk animals could be imported into the United States by some 
other route or under other conditions without presenting an undue 
disease risk, we will publish a proposal in the Federal Register.
    On July 13, 1998, we published a notice in the Federal Register (63 
FR 37483, Docket No. 98-070-1) announcing that we do not plan to hold a 
lottery in December, 1998 for exclusive use of HSTAIC in calendar year 
1999. (Under Sec. 93.430(a) of the regulations, APHIS enters into a 
cooperative-service agreement with only one importer for each 
importation through HSTAIC. We refer to this as ``exclusive use''.) In 
the same notice we also announced that we will not enter into any 
cooperative-service agreements with importers for use of the facility 
unless it is certain the animals will enter HSTAIC on or before 
December 31, 1998. This will ensure that no animals are in the facility 
beyond March 31, 1999, and allow us to close the facility by the end of 
FY 1999, should we decide to do so as a result of this rulemaking.

Executive Order 12866 and Regulatory Flexibility Act

    This proposed rule has been reviewed under Executive Order 12866. 
The rule has been determined to be not significant for the purposes of 
Executive Order 12866 and therefore, has not been reviewed by the 
Office of Management and Budget.
    If this proposed rule is adopted, we will close HSTAIC and amend 
the animal import regulations by removing all provisions related to 
HSTAIC.
    HSTAIC is a maximum-security APHIS animal import center that 
provides quarantine services for animals which would otherwise be 
excluded because they are being imported directly from countries where 
high-risk diseases such as foot-and-mouth disease (FMD), rinderpest, 
African swine fever, hog cholera, and swine vesicular disease are 
found. HSTAIC was designed to be a self-supporting facility, to as a 
great degree as possible, with costs defrayed by charges to the 
importers of the animals who use the facility. However, this has not 
been the case. Instead, the facility has been under used and has never 
generated enough revenue to be self-sufficient.
    Vital repairs and maintenance of the facility and its equipment has 
been accomplished by diverting the Agency's scarce resources, as APHIS 
has no funds allocated for this purpose. However, these costly short 
term repairs and maintenance have not been adequate to upgrade the 
facility. Regulations concerning the use of the facility were revised 
in the early 1990's so that any user of HSTAIC for a single animal 
importation would be responsible for paying all related costs, except 
capital expenses, incurred in qualifying and quarantining the imported 
animals at HSTAIC, but the deficit has persisted. At inception a strong 
demand was projected for breeding stock in order to import strains of 
livestock that had specific traits needed for improving U.S. domestic 
breeds, particularly cattle from high disease-risk countries. However, 
after the first six imports, this has not occurred. The facility has 
not had the optimal three imports in any year and money for capital 
expenditures has not been appropriated. Therefore, we are proposing to 
close the facility and remove from the CFR the current regulations 
concerning HSTAIC. Under the terms of this proposal, the Center would 
not accept animals for quarantine after December 31, 1998, and APHIS 
would enter into an agreement with a prospective importer for final 
exclusive use of the facility only if it was certain that the animals 
could enter the Center on or before that date.
    Since HSTAIC was dedicated in 1979 there have been 21 ruminant and 
swine importations (including Alpaca imports from Peru which are still 
in quarantine and to be released on September 1998). The first imports 
(cattle from Brazil) were released in July 1980. A total of 6,713 
animals have been quarantined and released during this period, 
including cattle (633), swine (574), sheep and goats (460) and camelids 
(5,046). Several countries in Latin America (Bolivia, Brazil, Chile and 
Peru), Europe (France, Germany), Asia (China), and Africa (South 
Africa) were the sources of the imports. Of these, Chile, France and 
Germany are now recognized as FMD free. Certain regions in South Africa 
are also in the process of being recognized as free. The first six 
imports were cattle (3 from Brazil and 3 from Europe). Camelids have 
accounted for 11 imports (5 from Bolivia, 1 from Chile/Brazil and 5 
from Peru). There have been three imports of swine (1 from China, 1 
from France and 1 from Germany), and one import of sheep and goats 
(from South Africa). Eight out of the nine most recent imports have 
been camelids.
    The above total, 21 imports in nearly 20 years, has fallen short of 
the anticipated three shipments of animals per year. Based on three 
months of isolation at the center for each group and one month between 
shipments for cleaning and disinfecting, with full use, there should 
have been 57 imports handled through HSTAIC. Furthermore, the size of 
individual imports has been smaller than the capacity of the facility, 
and thus importers have failed to take advantage of economies of scale, 
which would have reduced the per animal cost of using the facility, as 
costs per animal are lower as numbers increase. The capacity of the 
facility is about 400, plus sentinel animals (This designation is for 
cattle. For smaller animals, such as sheep and goats, even larger 
numbers can be accommodated). Only 6,713 animals were actually imported 
and

[[Page 42595]]

quarantined during the entire 21 years. The potential number should 
have been more than 22,800 animals.
    The quarantine process is costly regardless of numbers, and is paid 
entirely by the importers. The average fee for the last 10 imports has 
been $1,920 (or $16 per day) per head. Each selected applicant has 
exclusive rights to use HSTAIC for the importation during the 
quarantine period and is responsible for paying all costs, excluding 
capital expenditure, incurred in qualifying and quarantining the 
specified animals through HSTAIC. A partial list of costs includes: 
expense for sentinel animals, laboratory tests, medical treatment, 
official travel by APHIS personnel, courier services to transport test 
samples to the Foreign Agricultural Disease Diagnostic Laboratory 
(FADDL), salaries of HSTAIC personnel, all supplies needed for animal 
care, maintenance, and testing and the post-quarantining cleaning and 
disinfection of HSTAIC, as well as utilities and overhead, including 
salaries and benefits of support staff. The operational cost of an 
average importation is high--between $750,000 and $1 million per import 
period. This cost is likely to increase, should the center remain open, 
since substantial infrastructure repairs are needed immediately and 
there is an ever-increasing requirement to maintain the aging facility. 
Expenses charged to selected importers vary by importation depending on 
the kind and number of animals in each shipment, and the country of 
origin.
    Since operating costs while the facility is in use are charged 
entirely to the importers, if HSTAIC were fully utilized (that is, 
housing three importations during each year), it could probably be 
nearly self-supporting. However, due to under-utilization, the minimum 
operating budget must cover costs borne by the facility in the absence 
of animal shipments. The facility has never had three imports in a 
single year since its opening. In fact, no quarantines at all occurred 
for two years (1986 and 1990), two imports each for only three years 
(1993, 1996 and 1998), and the remaining years have had only one import 
each year. Thus, up to two-thirds of operational costs have had to be 
covered from agency funds. During a non-used year, approximately 
$390,000 must be allocated, from the agency budget, just to maintain 
the facility. In a partial-use year the deficits ranged between 
$130,000 and $260,000. Over the duration of the facility, the agency 
has diverted approximately $4 million in nominal dollars, or about $6.4 
million in 1998 dollars, for operational expenditures to keep the 
facility ready for very few users.
    These deficit amounts do not reflect the depreciation of the 
component parts of the facility and of replacement needs. While the 
property presently has no other purpose except maintaining readiness 
for the small number of importers of special livestock from countries 
that are not free from FMD, equipment, supplies and the physical plant 
still lose their value, whether with disuse or use, as they wear out or 
become obsolete. Furthermore, as the facility has aged, maintaining the 
building in useable condition has required more frequent upgrading of 
its components, which have varying degrees of life expectancy. The 
annual adjusted depreciation value of the various physical components 
of the facility is approximately $93,776 (obtained by straight line 
depreciation of all replaceable assets and equipment whose useful life 
is still active) or about $257/day. This is the cost of depreciation 
the facility has been incurring annually even with full use, the amount 
that should have been collected for the purpose of upgrading equipment. 
By initially excluding capital expenditures from the fee structure, the 
agency has forfeited the opportunity to charge users approximately $1.8 
million in nominal dollars (or about $2.4 million in 1998 dollars) that 
it could have been collecting over the entire period. Overall, the 
operational deficits and the capital expenditures have accounted for 
about $8.8 million. If the facility is kept open, the agency would 
continue to incur similar losses, with only slight relief if these 
costs are prorated and added to user fees.
    The agency has already spent over $1 million in the last five years 
to repair and modify an incinerator, test emissions, and replace stack 
pipes, in an effort to meet standards set by the U.S. Environmental 
Protection Agency (EPA) and the Florida Department of Environmental 
Protection (FDEP). Attempting to keep this aging facility in compliance 
with EPA/FDEP standards will continue to be expensive for the agency. 
(These needed repairs include repairing and upgrading the facility's 
wastewater treatment facility; replacing a generator, an incinerator, 
the roof, and underground fuel storage tanks; and upgrading the fire 
suppression/alarm and heating, ventilation, and air conditioning 
systems.) Currently about $4.5 million are needed to make the most 
urgently needed repairs. Closing the facility would make this 
unnecessary. Since the agency is currently operating with a large 
deficit, even increased use would still not immediately meet revenue 
needs. The money and human resources needed to keep this facility 
operating could be diverted to other programs that play a more 
important role in protecting the United States against animal disease 
incursions. The cost of closing the facility, about $1 million, would 
be offset by the future saving the agency would realize.
    The proposed closure of the facility would not impact a substantial 
number of importers, because most importers do not use HSTAIC. Despite 
the original expectation that cattle and swine would be the predominant 
imports, over the last six years the facility has been used mainly by 
importers of llamas and alpacas. Using public funds in the maintenance 
of a facility that serves only specific importers places an undo burden 
on tax payers. The action is not expected to have a negative economic 
impact on this small number of entities, which could still import 
camelids into the United States from Chile, which has been recognized 
as FMD free since HSTAIC was dedicated. The facility closure could 
produce positive budgetary impact for the agency.
    Under these circumstances, the Administrator of the Animal and 
Plant Health Inspection Service has determined that this action would 
not have a significant economic impact on a substantial number of small 
entities.

Executive Order 12988

    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. If this proposed rule is adopted: (1) All State 
and local laws and regulations that are inconsistent with this rule 
will be preempted; (2) no retroactive effect will be given to this 
rule; and (3) administrative proceedings will not be required before 
parties may file suit in court challenging this rule.

Paperwork Reduction Act

    This proposed rule contains no information collection or 
recordkeeping requirements under the Paperwork Reduction Act of 1995 
(44 U.S.C. 3501 et seq.).

Lists of Subjects

9 CFR Part 93

    Animal diseases, Imports, Livestock, Poultry and poultry products, 
Quarantine, Reporting and recordkeeping requirements

9 CFR Part 94

    Animal diseases, Imports, Livestock, Meat and meat products, Milk, 
Poultry and poultry products, Reporting and recordkeeping requirements.

[[Page 42596]]

9 CFR Part 130

    Animals, Birds, Diagnostic reagents, Exports, Imports, Poultry and 
poultry products, Quarantine, Reporting and recordkeeping requirements, 
Tests.

    Accordingly, we are proposing to amend 9 CFR parts 93, 94 and 130 
as follows:

PART 93--IMPORTATION OF CERTAIN ANIMALS, BIRDS, AND POULTRY, AND 
CERTAIN ANIMAL, BIRD, AND POULTRY PRODUCTS; REQUIREMENTS FOR MEANS 
OF CONVEYANCE AND SHIPPING CONTAINERS

    1. The authority citation for part 93 would be revised to read as 
follows:

    Authority: 7 U.S.C. 1622; 19 U.S.C. 1306; 21 U.S.C. 102-105, 
111, 114a, 134a, 134b, 134c, 134d, 134f, 136, and 136a; 31 U.S.C. 
9701; 7 CFR 2.22, 2.80, and 371.2(d).


Secs. 93.430 and 93.431  [Removed and reserved]

    2. In part 93, Secs. 93.430 and 93.431 would be removed and 
reserved.


Secs. 93.522 and 93.523  [Removed]

    3. In part 93, Secs. 93.522 and 93.523 would be removed.

PART 94--RINDERPEST, FOOT-AND-MOUTH DISEASE, FOWL PEST (FOWL 
PLAGUE), EXOTIC NEWCASTLE DISEASE, AFRICAN SWINE FEVER, HOG 
CHOLERA, AND BOVINE SPONGIFORM ENCEPHALOPATHY: PROHIBITED AND 
RESTRICTED IMPORTATIONS

    4. The authority citation for part 94 would continue to read as 
follows:

    Authority: 7 U.S.C. 147a, 150ee, 161, 162, and 450; 19 U.S.C. 
1306; 21 U.S.C. 111, 114a, 134a, 134b, 134c, 134f, 136, and 136a; 31 
U.S.C. 9701; 42 U.S.C. 4331 and 4332; 7 CFR 2.22, 2.80, and 
371.2(d).

    5. In Sec. 94.1, paragraph (b) would be revised to read as follows:


Sec. 94.1  Regions where rinderpest or foot-and-mouth disease exists; 
importations prohibited.

* * * * *
    (b) The importation of any ruminant or swine or any fresh (chilled 
or frozen) meat of any ruminant or swine 1 that originates 
in any region where rinderpest or foot-and-mouth disease exists, as 
designated in paragraph (a) of this section, or that enters a port in 
or otherwise transits a region in which rinderpest or foot-and-mouth 
disease exists, is prohibited:
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    \1\ Importation of animals and meat includes bringing the 
animals or meat within the territorial limits of the United States 
on a means of conveyance for use as sea stores or for other 
purposes.
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    (1) Except as provided in part 93 of this chapter for wild 
ruminants and wild swine; and
    (2) except as provided in paragraph (c) of this section for meat of 
ruminants or swine that originates in regions free of rinderpest and 
foot-and-mouth disease but that enters a port or otherwise transits a 
region where rinderpest or foot-and-mouth disease exists; and
    (3) except as provided in Sec. 94.4 of this part for cooked or 
cured meat from regions where rinderpest or foot-and-mouth disease 
exists.
* * * * *

PART 130--USER FEES


Sec. 130.1  [Amended]

    6. The authority citation for part 130 would be revised to read as 
follows:

    Authority: 5 U.S.C. 5542; 7 U.S.C. 1622; 19 U.S.C. 1306; 21 
U.S.C. 102-105, 111, 114, 114a, 134a, 134b, 134c, 134d, 134f, 136, 
and 136a; 7 CFR 2.22, 2.80, and 371.2(d).

    7. In Sec. 130.1, the definition of Animal Import Center would be 
amended by removing the last sentence.

    Done in Washington, DC, this 4th day of August, 1998.
Joan M. Arnoldi,
Acting Administrator, Animal and Plant Health Inspection Service.
[FR Doc. 98-21363 Filed 8-7-98; 8:45 am]
BILLING CODE 3410-34-P