[Federal Register Volume 67, Number 175 (Tuesday, September 10, 2002)]
[Rules and Regulations]
[Pages 57326-57329]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-23056]


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DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Part 1487

RIN 0551-AA63


Technical Assistance for Specialty Crops Program

AGENCY: Commodity Credit Corporation, USDA.

ACTION: Interim rule.

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SUMMARY: This rule implements the Commodity Credit Corporation's 
``Technical Assistance for Specialty Crops'' program to help open, 
retain, and expand markets for U.S. specialty crops.

DATES: This rule is effective September 10, 2002. Comments concerning 
this rule should be received on or before November 12, 2002 to be 
assured consideration. Commodity Credit Corporation has published 
elsewhere in this issue a notice announcing that proposals to this 
program will be accepted until 5 p.m. Eastern Daylight Time, September 
18, 2002.

ADDRESSES: Comments must be submitted to Director, Marketing Operations 
Staff, Foreign Agricultural Service, Room 4932-S, Stop 1042, U.S. 
Department of Agriculture, 1400 Independence Ave., SW., Washington, DC 
20250-1042.

FOR FURTHER INFORMATION CONTACT: Marketing Operations Staff, Foreign 
Agricultural Service, Room 4932-S, Stop 1042, U.S. Department of 
Agriculture, 1400 Independence Ave., SW., Washington, DC 20250-1042, or 
telephone: (202) 720-4327.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    This rule is issued in conformance with Executive Order 12866. It 
has been determined significant for the purposes of Executive Order 
12866 and, therefore, has been reviewed by the Office of Management and 
Budget (OMB).

Regulatory Flexibility Act

    It has been determined that the Regulatory Flexibility Act is not 
applicable to this rule because the Commodity Credit Corporation is not 
required by any provision of law to publish a notice of proposed 
rulemaking with respect to the subject matter of this rule.

Executive Order 12988

    This proposed rule has been reviewed in accordance with Executive 
Order 12988, Civil Justice Reform. This rule would have preemptive 
effect with respect to any State or local laws, regulations or policies 
which conflict with such provisions or which otherwise impede their 
full implementation; does not have retroactive effect; and does not 
require administrative proceedings before suit may be filed.

Executive Order 12372

    This program is not subject to the provisions of Executive Order 
12372, which require intergovernmental consultation with State and 
local officials. See the notice related to 7 CFR part 3014, subpart V, 
published at 48 FR 29115 (June 24, 1983).

The Unfunded Mandates Reform Act of 1995

    This rule contains no Federal mandates under the regulatory 
provisions of Title II of the Unfunded Mandates Reform Act of 1995 
(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 the UMRA.

Paperwork Reduction Act of 1995

    In accordance with section 3507(j) of the Paperwork Reduction Act 
of 1995 (44 U.S.C. 3501 et seq.), the Commodity Credit Corporation 
(CCC) requests approval of a new information collection in support of 
the Technical Assistance for Specialty Crops program.
    Title: Technical Assistance for Specialty Crops Program.
    OMB Control Number: Not yet assigned.
    Type of Request: Approval of an information collection.
    Abstract: This information is needed to administer CCC's Technical 
Assistance for Specialty Crops program. The information will be 
gathered from applicants desiring to receive grants under the program 
to determine the viability of requests for funds.
    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 32 hours per year per respondent.
    Respondents: U.S. government agencies, State government agencies, 
non-profit trade associations, universities, agricultural cooperatives, 
and private companies.
    Estimated Number of Respondents: 20.
    Estimated Number of Responses per Respondent: 5.
    Estimated Total Annual Burden on Respondents: 640 hours.
    Proposed topics for comments are: (a) Whether the collection of 
information is necessary for the proper performance of

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the functions of the agency, including whether the information will 
have practical utility; (b) the accuracy of the agency's estimate of 
burden including the validity of the methodology and assumptions used; 
(c) ways to enhance the quality, utility, and clarity of the 
information to be collected; or (d) ways to minimize the burden of the 
collection of information on those who are to respond, including the 
use of appropriate automated, electronic, mechanical or other 
technological collection techniques or other forms of information 
technology.
    Comments should be sent to the Desk Officer for Agriculture, Office 
of Information and Regulatory Affairs, Office of Management and Budget, 
Washington, DC 20503 and to: Director, Marketing Operations Staff, 
Foreign Agricultural Service, Room 4932-S, Stop 1042, U.S. Department 
of Agriculture, 1400 Independence Ave., SW., Washington, D.C. 20250-
1042.
    Copies of this information collection may be obtained from Kimberly 
Chisley, FAS Information Collection Coordinator, at (202) 720-2568.
    All responses to this notice will be summarized. All comments will 
also become a matter of public record.

Executive Order 12612

    It has been determined 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, without prior comment, but subject to modification on the 
consideration of those comments that are timely received. The Technical 
Assistance for Specialty Crops program is authorized by section 3205 of 
the Farm Security and Rural Investment Act of 2002 (Pub. L. 107-171), 
which became effective on May 13, 2002. That section provides that the 
Secretary of Agriculture shall establish a program to address unique 
barriers that prohibit or threaten the export of United States 
specialty crops and that the Secretary shall make available $2,000,000 
of CCC funds for each of fiscal years 2002 through 2007. It has been 
determined that to delay the implementation of the rule pending comment 
would be impracticable and contrary to the public interest. That 
finding is based on the fact that, given the limited time remaining in 
this fiscal year, it is not possible for organizations to develop 
appropriate proposals for the new $2 million program and for the 
Department to adequately evaluate these new proposals through a 
meaningful allocation process. We do not believe that a compressed 
schedule that would result following adoption of a final rule after an 
initial proposed rule would give potential new applicants enough time 
to gather information and prepare a proposal. In addition, the 
Department would be forced to shorten its competitive review processes. 
In other words, the Department might not be able to allocate the 
resources as required by section 3205 of Public Law 107-171. 
Accordingly, for all the foregoing reasons, it has been determined that 
the provisions of this rule should be made effective immediately.

Background

    The CCC will periodically announce that proposals may be submitted 
for participation in a ``Technical Assistance for Specialty Crops'' 
program (TASC), which will be administered by personnel of the Foreign 
Agricultural Service (FAS). On May 13, 2002, the President signed the 
Farm Security and Rural Investment Act of 2002. Section 3205 of that 
Act directs the Secretary to establish an export assistance program to 
address unique barriers that prohibit or threaten the export of U.S. 
specialty crops. The statute directs the Secretary to make available 
$2,000,000 of CCC resources for TASC in each of fiscal years 2002 
through 2007. U.S. specialty crops, for the purpose of this rule, 
include all cultivated plants, or the products thereof, produced in the 
U.S., except wheat, feed grains, oilseeds, cotton, rice, peanuts, 
sugar, and tobacco.
    The TASC is designed to assist U.S. organizations by providing 
funding for projects that address sanitary, phytosanitary, and 
technical barriers that prohibit or threaten the export of U.S. 
specialty crops. TASC proposals will be accepted from any U.S. 
organization, including, but not limited to: U.S. government agencies, 
State government agencies, non-profit trade associations, universities, 
agricultural cooperatives, and private companies. FAS will consider 
providing either grant funds as direct assistance to U.S. organizations 
or providing technical assistance on behalf of U.S. organizations 
provided that the organization submits timely and sufficient proposals. 
CCC has published elsewhere in this issue a notice announcing that 
proposals to this program for fiscal year 2002 will be accepted until 5 
p.m. Eastern Daylight Time, September 18, 2002. For fiscal year 2002, 
FAS will review all proposals against the evaluation criteria contained 
herein and make awards on a continuing, or rolling, basis.
    Under the TASC program, CCC will enter into agreements with those 
non-Federal entities whose proposals have been approved. After 
implementation of a TASC project for which CCC has agreed to provide 
funding, participants may submit claims for reimbursement of the costs 
associated with completing the project, to the extent that CCC has 
agreed to pay such costs. A TASC participant will be reimbursed after 
CCC reviews its claim and determines that the claim is complete. TASC 
projects will be subject to verification by the FAS Compliance Review 
Staff. Upon request, a TASC participant shall provide to FAS the 
original documents that support the participant's project expenses. FAS 
may deny a claim for reimbursement if the claim is not supported by 
adequate documentation. TASC participants may request advances of funds 
up to 85 percent of the approved amount. In such cases, reimbursement 
claims will be used to offset the advanced funds. TASC participants 
must deposit and maintain advances in insured, interest-bearing 
accounts, unless such accounts are prohibited by law or custom of a 
host country.

List of Subjects in 7 CFR Part 1487

    Agricultural commodities, Exports, Specialty crops.

    Accordingly, title 7 of the Code of Federal Regulations is revised 
by adding a new part 1487 to read as follows:

PART 1487--TECHNICAL ASSISTANCE FOR SPECIALTY CROPS

Sec.
1487.1 What special definitions apply to the TASC program?
1487.2 What is the TASC Program?
1487.3 What activities are eligible?
1487.4 Are there any limits on the scope of proposals?
1487.5 What is the process for submitting proposals?
1487.6 What are the criteria for evaluating proposals?
1487.7 How are agreements formalized?
1487.8 How does my organization apply for funds?
1487.9 Can participants receive advance payments?

    Authority: Sec. 3205 of Pub. L. 107-171.

[[Page 57328]]

PART 1487--TECHNICAL ASSISTANCE FOR SPECIALTY CROPS


Sec.  1487.1  What special definitions apply to the TASC program?

    For purposes of this part, the following definitions apply:
    CCC--Commodity Credit Corporation.
    FAS--Foreign Agricultural Service, United States Department of 
Agriculture.
    Specialty crop--all cultivated plants, or the products thereof, 
produced in the United States, except wheat, feed grains, oilseeds, 
cotton, rice, peanuts, sugar, and tobacco.
    TASC--Technical Assistance for Specialty Crops.
    United States--the fifty states, the District of Columbia, and 
Puerto Rico.


Sec.  1487.2  What is the TASC program?

    Under the TASC program, CCC, an agency and instrumentality of the 
United States within the Department of Agriculture, provides funds to 
eligible organizations, on a grant basis, to implement activities that 
are intended to address a sanitary, phytosanitary, or related technical 
barrier that prohibit or threaten the export of U.S. specialty crops 
that are currently available on a commercial basis. The TASC program is 
intended to benefit the represented industry rather than a specific 
company or brand. This program is administered by FAS.


Sec.  1487.3  What activities are eligible?

    (a) General. In order to be eligible for funding under the TASC 
program, activities must address sanitary, phytosanitary, or technical 
barriers to export of specialty crops. Examples of expenses that CCC 
may agree to cover under the TASC program include, but are not limited 
to: initial pre-clearance programs, export protocol and work plan 
support, seminars and workshops, study tours, field surveys, 
development of pest lists, pest and disease research, database 
development, reasonable logistical and administrative support, and 
travel and per diem expenses.
    (b) Location of activities. Eligible projects may take place in the 
United States or abroad.


Sec.  1487.4  Are there any limits on the scope of proposals?

    (a) Funding cap. TASC proposals which request more than $250,000 of 
CCC funding in a given year will not be considered.
    (b) Length of activities. TASC proposals to fund activities that 
exceed three years will not be considered.
    (c) Target countries. Proposals may target all export markets, 
including single countries or reasonable regional groupings of 
countries.
    (d) Multiple proposals. Applicants may submit multiple proposals, 
but no TASC participant may have more than three approved projects 
underway at any given time.


Sec.  1487.5  What is the process for submitting proposals?

    (a) General. To be considered for participation in the TASC, 
interested parties should submit proposals to: Director, Marketing 
Operations Staff, Foreign Agricultural Service, Room 4932-S, Stop 1042, 
U.S. Department of Agriculture, 1400 Independence Ave., SW., 
Washington, DC 20250-1042. Telephone: (202) 720-4327. Entities 
interested in participating in the TASC program are not required to 
submit proposals in any specific format, although interested parties 
can request a suggested format for proposals from the same address.
    (b) Contents of proposals. TASC proposals must contain complete 
information about the proposed projects, including, at a minimum, the 
following:
    (1) Organizational information, including:
    (i) Organization's name, address, Chief Executive Officer (or 
designee), and Federal Tax Identification Number (TIN);
    (ii) Type of organization;
    (iii) Name, telephone number, fax number, and e-mail address of the 
primary contact person;
    (iv) A description of the organization and its membership; and
    (v) A description of the organization's experience in technical 
assistance projects, including activities involved and project results.
    (2) Project information, including:
    (i) A brief project title;
    (ii) Request for funding;
    (iii) A market assessment, including a brief description of the 
specific export barrier to be addressed by the project;
    (iv) The goals of the project, and the expected benefits to the 
represented industry;
    (v) A description of the activities planned to address the export 
barrier;
    (vi) An itemized list of all estimated costs associated with the 
project for which reimbursement will be sought; and
    (vii) Information indicating all financial and in-kind support to 
the proposed project, and the resources to be contributed by each 
entity that will contribute to the project's implementation. This may 
include the organization that submitted the proposal, private industry 
entities, host governments, foreign third parties, CCC, FAS, or other 
Federal agencies. Support may include cash, goods, and services. 
Although highly encouraged, financial support from the participant is 
not required.
    (3) Export information, including:
    (i) Performance measures for three years, beginning with the year 
that the project would begin, which will be used to measure the 
effectiveness of the project;
    (ii) A benchmark performance measure for the year prior to the year 
that the project would begin; and
    (iii) The viability of long-term sales to this market.


Sec.  1487.6  What are the criteria for evaluating proposals?

    (a) Evaluation criteria. FAS will use the following criteria in 
evaluating proposals:
    (1) The degree to which time is essential to addressing specific 
export barriers;
    (2) The nature of the specific export barrier and the extent to 
which the proposal is likely to successfully remove, resolve, or 
mitigate that barrier;
    (3) The impact of the proposed project on market retention, market 
access, and market expansion;
    (4) The completeness and viability of the proposal;
    (5) The ability of the organization to provide an experienced staff 
with the requisite technical and trade experience to execute the 
proposal;
    (6) The extent to which the proposal is targeted to a market in 
which the United States is generally competitive;
    (7) The potential for expanding commercial sales in the targeted 
market; and
    (8) The cost of the project and the amount of other resources 
dedicated to the project, including cash and goods and services of the 
U.S. industry and foreign third parties.
    (b) Evaluation process. FAS will review proposals for eligibility 
and will evaluate each proposal against the factors described in 
paragraph (a) of this section. The purpose of this review is to 
identify meritorious proposals, recommend an appropriate funding level 
for each proposal based upon these factors, and submit the proposals 
and funding recommendations to the Deputy Administrator, Commodity and 
Marketing Programs. FAS may, when appropriate to the subject matter of 
the proposal, request the assistance of other U.S. government experts 
in evaluating the merits of a proposal.


Sec.  1487.7  How are agreements formalized?

    Following approval of a proposal, CCC will enter into an agreement 
with

[[Page 57329]]

the organization that submitted the proposal. TASC agreements will 
incorporate the proposal as approved by FAS, include a maximum amount 
that may be reimbursed, and identify terms and conditions pursuant to 
which CCC will reimburse certain costs of the project. TASC agreements 
will also outline any specific responsibilities of the participant, 
including, but not limited to, timely and effective implementation of 
technical assistance and submission of a written evaluation report 
within six months of completion of the project. Evaluation reports 
should address the performance measures presented in the proposal. TASC 
participants are also subject to the reporting and recordkeeping 
requirements described in 7 CFR part 3019, ``Uniform Administrative 
Requirements for Grants and Agreements with Institutions of Higher 
Education, Hospitals, and Other Non-profit Organizations''.


Sec.  1487.8  How does my organization apply for funds?

    CCC will publish a notice periodically in the Federal Register 
informing the public of the process by which interested organizations 
may apply for TASC program funding. This notice will, among other 
things, include information on any deadlines for submitting 
applications and the office where the applications should be sent.


Sec.  1487.9  Can participants receive advance payments?

    (a) Reimbursement. Generally, after implementation of a TASC 
project for which CCC has agreed to provide funding, participants may 
submit claims for reimbursement of the costs associated with completing 
the project, to the extent that CCC has agreed to pay such costs. A 
TASC participant will be reimbursed after CCC reviews its claim and 
determines that the claim is complete. TASC projects will be subject to 
verification by the FAS Compliance Review Staff.
    (b) Advances. TASC participants may request advances of funds up to 
85 percent of the amount approved for funding. In such cases, 
reimbursement claims will be used to offset the advanced funds.
    (c) Interest. TASC participants must deposit and maintain advances 
in insured, interest-bearing accounts, unless such accounts are 
prohibited by law or custom of a host country. Interest earned on 
advances must be returned to CCC.

    Dated: September 6, 2002.
W. Kirk Miller,
Acting Administrator, Foreign Agricultural Service, and Vice President, 
Commodity Credit Corporation.
[FR Doc. 02-23056 Filed 9-6-02; 1:03 pm]
BILLING CODE 3410-10-P