[Federal Register Volume 65, Number 210 (Monday, October 30, 2000)]
[Rules and Regulations]
[Pages 64596-64597]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-27788]


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DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service

Rural Utilities Service

7 CFR Part 4279

RIN 0570-AA31


Business and Industry Guaranteed Loan Program--Domestic Lamb 
Industry Adjustment Assistance Program Set Aside

AGENCY: Rural Business-Cooperative Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: The Rural Business-Cooperative Service (RBS) is amending its 
regulation for Business and Industry Loans, as part of a U.S. 
Department of Agriculture (USDA) initiative to assist the ailing 
domestic lamb industry, to establish a 3-year set aside of a portion of 
its Business and Industry (B&I) Guaranteed Loan Program funds to 
finance real estate purchases and improvements, working capital, debt 
refinancing, and equipment in domestic lamb packing and processing 
plants. The intended effect of this rule is to enhance the lamb 
industry's ability to compete in the marketplace.

DATES: The effective date of this interim rule is October 30, 2000. 
Written or e-mail comments must be received on or before December 29, 
2000 to be assured of consideration.

ADDRESSES: Submit written comments via U.S. Postal Service, in 
duplicate, to the Regulations and Paperwork Management Branch, 
Attention: Cheryl Thompson, Rural Development, U.S. Department of 
Agriculture, STOP 0742, 1400 Independence Avenue, SW., Washington, DC 
20250-0742. Submit written comments via Federal Express Mail, in 
duplicate, to the Regulations and Paperwork Management Branch, 
Attention: Cheryl Thompson, USDA-Rural Development, 3rd Floor, 300 E 
Street, SW., Washington, DC 20546. Also, comments may be submitted via 
the Internet by addressing them to ``[email protected].'' The 
comment must contain the word ``Lamb'' in the subject line. All 
comments will be available for public inspection during regular work 
hours at the 300 E Street, SW., address listed above.

FOR FURTHER INFORMATION CONTACT: Roland Woodfolk, Commercial Loan 
Specialist, Business Programs Processing Division, Rural Business-
Cooperative Service, U.S. Department of Agriculture, STOP 3221, 1400 
Independence Avenue, SW., Washington, D.C. 20250-3221, telephone (202) 
690-3805, or by sending an e-mail message to 
``[email protected]''.

SUPPLEMENTARY INFORMATION:

Classification

    This interim final rule has been determined not significant and, 
therefore, has not been reviewed by the Office of Management and Budget 
(OMB) under Executive Order 12866.

Programs Affected

    The Catalog of Federal Domestic Assistance number for this program 
impacted by this action is 10.768, Business and Industry Loans.

Intergovernmental Review

    Business and Industry Guaranteed loans are subject to the 
provisions of Executive Order 12372, which require intergovernmental 
consultation with State and local officials. RBS has conducted or will 
conduct intergovernmental consultation in the manner delineated in 7 
CFR part 3015, subpart V, ``Intergovernmental Review of Department of 
Agriculture Programs and Activities.''

Civil Justice Reform

    This interim rule has been reviewed under Executive Order 12988, 
``Civil Justice Reform.'' In accordance with this rule: (1) All state 
and local laws and regulations that are in conflict with this rule will 
be preempted, (2) no retroactive effect will be given this rule, and 
(3) administrative proceedings of the National Appeals Division (7 CFR 
part 11) must be exhausted before bringing suit in court challenging 
action taken under this rule.

Environmental Impact Statement

    This document has been reviewed in accordance with 7 CFR part 1940, 
subpart G, ``Environmental Program.'' RBS has determined that this 
action does not constitute a major Federal action significantly 
affecting the quality of the human environment, and, in

[[Page 64597]]

accordance with the National Environmental Policy Act of 1969, 42 
U.S.C. 4321 et seq., an Environmental Impact Statement is not required.

Paperwork Reduction Act

    There is no reporting and recordkeeping requirements associated 
with this interim rule.

Unfunded Mandates

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), 2 
U.S.C chapters 17A and 25, establishes requirements for Federal 
agencies to assess the effects of their regulatory actions on state, 
local, and tribal governments and the private sector. Under section 202 
of the UMRA, RBS generally must prepare a written statement, including 
a cost-benefit analysis, for proposed and final rules with ``Federal 
mandates,'' that may result in expenditures to state, local, or tribal 
governments, in the aggregate, or to the private sector, of $100 
million or more in any 1 year. When such a statement is needed for a 
rule, section 205 of UMRA generally requires RBS to identify and 
consider a reasonable number of regulatory alternatives and adopt the 
least costly, more cost-effective, or least burdensome alternative that 
achieves the objectives of the rule. This rule contains no Federal 
mandates (under the regulatory provisions of title II of the UMRA) for 
state, local, and tribal governments or the private sector. Thus, this 
rule is not subject to the requirements of sections 202 and 205 of 
UMRA.

Regulatory Flexibility Act

    In compliance with the Regulatory Flexibility Act, RBS has 
determined that this action would not have a significant economic 
impact on a substantial number of small entities, because the action 
will not affect a significant number of small entities, as defined by 
the Regulatory Flexibility Act (5 U.S.C. 601). RBS made this 
determination based on the fact that this regulation only impacts those 
who choose to participate in the program. Small entity applicants will 
not be impacted to a greater extent than large entity applicants.

Executive Order 13132

    It has been determined under Executive Order 13132, ``Federalism,'' 
that this rule does not have sufficient federalism implications to 
warrant the preparation of a Federalism Assessment. The provisions 
contained in this rule will not have a substantial direct effect on 
states or their political subdivisions or on the distribution of power 
and responsibilities among the various levels of Government.

Immediate Effectiveness of This Rule

    It has been determined that this rule should be issued as an 
interim rule, effective immediately (October 30, 2000), but subject to 
the modification on the consideration of comments that are timely 
received. As a result of the United States International Trade 
Commission findings in Investigation Number TA-201-68 on July 7, 1999, 
the President issued a declaration concerning the lamb meat industry. 
In response to that declaration, the Secretary of Agriculture is 
implementing import relief and adjustment assistance measures using, 
among other things, USDA loan programs to facilitate efforts of the 
domestic lamb industry to compete with foreign lamb industries.
    Market conditions have deteriorated since 1997. Lamb producers have 
been some of the hardest hit, suffering major losses during 1997 and 
1998, due to record high imports of low-price lamb meat; so there is a 
critical need for immediate action. Furthermore, while the need for 
immediate assistance is critical, potential harm to other parties, 
resulting from the issuance of this rule as an interim rule, is 
expected to be minimal. Therefore, RBS has determined that the notice 
and public procedure thereon are impracticable, unnecessary, and 
contrary to public interest.

Discussion of the Interim Rule

    The purpose of the B&I Guaranteed Loan Program is to improve, 
develop, or finance business, industry, and employment and improve the 
economic and environmental climate in rural communities. This purpose 
is achieved by bolstering the existing private credit structure through 
the guaranteeing of quality loans that will provide lasting community 
benefits.
    The U.S. sheep industry lacks competitive domestic lamb products at 
the wholesale and retail levels to effectively compete with imported 
products. Upgrading processing systems to produce a consumer-ready 
product at the retail level, that include attributes such as modified 
atmosphere packaging, portion control, and pre-cooked items, will 
greatly enhance the domestic lamb industry's ability to compete in the 
marketplace. B&I loans to upgrade, replace, and install new processing 
and packaging equipment are eligible under existing program 
regulations. As part of a USDA initiative to target assistance to the 
domestic lamb industry, the Agency is setting aside a portion of the 
B&I Guaranteed Loan Program funds to finance real estate purchases and 
improvements, working capital, debt refinancing, and equipment in 
domestic lamb processing and packaging plants. This rule is intended to 
recognize the set aside of $15 million in fiscal year (FY) 2001, $5 
million in FY 2002, and $5 million in FY 2003.

List of Subjects in 7 CFR Part 4279

    Loan programs--Business, Rural areas.

    Therefore, chapter XLII, title 7, Code of Federal Regulations, is 
amended as follows:

PART 4279--GUARANTEED LOANMAKING

    1. The authority citation for part 4279 continues to read as 
follows:

    Authority: 5 U.S.C. 301; 7 U.S.C 1989.

Subpart B--Business and Industry Loans

    2. Section 4279.175 is added to read as follows:


Sec. 4279.175  Domestic lamb industry adjustment assistance program set 
aside.

    A 3-year set aside of B&I Guaranteed Loan Program funds has been 
established in the National Office to fund loans to lamb processors for 
real estate purchases and improvements; working capital; debt 
refinancing; and upgrading, replacing, and installing new processing 
and packaging equipment for domestic lamb packing and processing 
plants. The set aside is $15 million for FY 2001, $5 million for FY 
2002, and $5 million for FY 2003. These funds will be available through 
the third quarter of each respective year and, if not used, will revert 
for use in the general program.

    Dated: September 29, 2000.
Jill Long Thompson,
Under Secretary, Rural Development.
[FR Doc. 00-27788 Filed 10-27-00; 8:45 am]
BILLING CODE 3410-XY-P