[Federal Register Volume 64, Number 103 (Friday, May 28, 1999)]
[Notices]
[Pages 28969-28970]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-13634]


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 Notices
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains documents other than rules 
 or proposed rules that are applicable to the public. Notices of hearings 
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 delegations of authority, filing of petitions and applications and agency 
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  Federal Register / Vol. 64, No. 103 / Friday, May 28, 1999 / 
Notices  

[[Page 28969]]


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DEPARTMENT OF AGRICULTURE

Forest Service


Small Business Timber Sale Set-Aside Program Share Recomputation

AGENCY: Forest Service, USDA.

ACTION: Notice of proposed policy; request for public comment.

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SUMMARY: The Forest Service proposes to revise the formulas used for 
calculating timber sale set-aside market shares. The formula would be 
revised to use only purchased timber sale data for the recomputation of 
shares to ensure that the most significant factor affecting 
recomputations is given the appropriate weight in the formula. This 
change is needed to make the recomputation process as fair and accurate 
as possible as well as simplifying the process. The agency also 
proposes to change structural recomputation procedures to make 
structural change implementation more timely and responsive to the 
actual market conditions.

DATES: Comments must be received in writing by June 28, 1999.

ADDRESSES: Send written comments to Director, Forest Management, MAIL 
STOP 1105, Forest Service, USDA, PO Box 96090, Washington, DC 20090-
6090. All comments, including names and addresses when provided, are 
placed in the record and are available for public inspection and 
copying. Persons wishing to inspect the comments are encouraged to call 
ahead at (202) 205-1766 to facilitate entrance into the building.

FOR FURTHER INFORMATION CONTACT: Rod Sallee, Small Business Timber Sale 
Set-aside Program Manager, Forest Management Staff, by telephone at 
(202) 205-1766 or by internet at rsallee/[email protected].

SUPPLEMENTARY INFORMATION: Developed in cooperation with the Small 
Business Administration, the Forest Service Small Business Timber Sale 
Set-aside Program is designed to ensure that qualifying small business 
timber purchasers have the opportunity to purchase a fair proportion of 
National Forest System timber offered for sale. The current Small 
Business Timber Sale Set-aside Program was adopted July 26, 1990 (55 FR 
230485). Direction that guides Forest Service employees in 
administering the Small Business Timber Sale Set-aside Program is 
issued in the Forest Service Manual, Chapter 2430, and Chapter 90 of 
the Forest Service Timber Sale Preparation Handbook (FSH 2409.18).
    According to the guidelines of this program, the Forest Service 
recomputes the shares of timber sales to be set aside for qualifying 
small businesses every 5 years. The recomputation percentage is based 
on the actual volume of sawtimber that has been purchased and/or 
harvested by small businesses. In addition to the 5-year requirement, 
shares must be recomputed whenever manufacturing capability changes, 
purchaser class size changes, or when certain purchasers discontinue 
operations.
    In the early 1980's, forest Service Regions, except the Eastern and 
Southern Regions, used a formula for the recomputation of small 
business market shares based on timber harvest data gathered from 
scaling logs. The Eastern and Southern Regions, however, have been 
using tree measurement data in the recomputation formula for many years 
because the trees marked for sale in the East are much smaller than the 
trees included in timber sales in the West and three measurement data 
has been found to be a more accurate measurement of the timber volume 
for smaller trees. In western regions the log scaling method has been 
used previously to allow volume deductions since a greater amount of 
defective wood is found in larger, older trees.
    In the past 15 years, the volume of timber sold and harvested in 
all regions has declined substantially. for example, the timber program 
budget has decreased from 12 billion board feet in Fiscal Year 1990 to 
less than 4 billion board feet in Fiscal Year 1998. In recent years, 
nearly half of the National Forest timber volume sold has been salvaged 
from areas damaged by fire and other catastrophic events.
    Furthermore, trees currently included in timber sales in western 
regions are significantly smaller (as measured by diameter at breast 
height) than trees typically marked for sale in the 1980's and early 
1990's. This change in size has resulted in an increase in tree 
measurement sales in all regions. Now that most timber sales are 
comprised of younger, healthier trees, the tree measurement method of 
scaling is more efficient and easier to use; therefore, the Forest 
Services proposes to revise the formula for calculating the 
recomputation of shares to use tree measurement data.
    The Forest Service also proposes to revise the procedures for 
recalculating the small business share of timber sales to shorten the 
time period for responding to a determination that a market structural 
change has occured. An increase in administrative appeals and 
litigation have resulted in significant delays in harvesting timber 
sales. Due to the reduction in the number and volume of timber sales 
available, timber purchasers are not able to have under contract the 
number of timber sales or the amount of timber volume they have held in 
the past. Because of the decreased opportunity to buy Forest Service 
timber, competition between timber sale purchasers has increased, and 
some timber businesses have closed. The Forest Service proposes to 
revise the time period for recomputing shares when a structural change 
occurs to respond to the reduction in the number of timber purchasers 
and other structural changes in the industry. The time period would be 
changed to recompute and implement small business shares within 18 
months of a determination by the Forest Service and the Small Business 
Administration that a structural change has occurred, rather than the 
36 months currently allowed. With the reduced number of purchasers and 
mills, this adjustment in responding to a structural change would 
provide more time for other operators to respond and fill any void 
caused by a structural change. This proposed policy revision would 
result in more timely availability of timber sale shares that actually 
reflect timber industry conditions for the market area. The Forest 
Service is seeking written comment on this proposal or other 
suggestions for improving the implementation of structural change 
recomputations.

[[Page 28970]]

Summary

    The Forest Service proposes to revise the Forest Service Timber 
Sale Preparation Handbook (FSH 2409.18) to remove the harvest volume 
data from the recomputation formula and require the use of volume of 
timber purchased data to determine the small business share. The agency 
also proposes to reduce the time period for structural change 
implementation.

Regulatory Impact

    This proposed policy has been reviewed under USDA procedures and 
Executive Order 12866 on Regulatory and Review. It has been determined 
that this is not a significant policy. This proposed policy will not 
have an annual effect of $100 million or more on the economy nor 
adversely affect productivity, competition, jobs, the environment, 
public health or safety, nor State or local governments. This proposed 
policy will not interfere with an action taken or planned by another 
agency nor raise new legal or policy issues. Finally, this proposed 
action will not alter the budgetary impact of entitlements, grants, 
user fees, or loan programs or the rights and obligations of recipients 
of such programs. Accordingly, this proposed policy is not subject to 
OMB review under Executive Order 12866.
    Moreover, this proposed policy has been considered in light of the 
Regulatory Flexibility Act (5 U.S.C. 601 et. seq.), and it has been 
determined that this action will not have a significant economic impact 
on a substantial number of small entities as defined by that Act.

Environmental Impact

    Section 31.1b of Forest Service Handbook 1909.15 (57 FR 43180; 
September 18, 1992) excludes from documentation in an environmental 
assessment or impact statement ``rules, regulations, or policies to 
establish Service-wide administrative procedures, program processes, or 
instructions.'' The agency's preliminary assessment is that this 
proposed policy falls within this category of actions and that no 
extraordinary circumstances exist which would require preparation of an 
environmental assessment or environmental impact statement. A final 
determination will be made upon adoption of the final policy.

Unfunded Mandates Reform

    Pursuant to Title II of the Unfunded Mandates Reform Act of 1995 (2 
U.S.C. 1531-1538), which the President signed into law on March 22, 
1995, the Department has assessed the effects of this policy on state, 
local, and tribal governments and the private sector. This policy does 
not compel the expenditure of $100 million or more by any State, local, 
or tribal governments or anyone in the private sector. Therefore, a 
statement under section 202 of the Act is not required.

Controlling Paperwork Burdens on the Public

    This policy does not contain any recordkeeping or reporting 
requirements or other information collection requirements as defined in 
5 CFR part 1320 and, therefore, imposes no paperwork burden on the 
public. Accordingly, the review provisions of the Paperwork Reduction 
Act of 1995 (44 U.S.C. 3510 et seq.) and implementing regulations at 5 
CFR 1320 do not apply.

    Dated: April 13, 1999.
Robert Lewis, Jr.,
Acting Associate Chief.
[FR Doc. 99-13634 Filed 5-27-99; 8:45 am]
BILLING CODE 3410-11-M