[Federal Register Volume 68, Number 138 (Friday, July 18, 2003)]
[Rules and Regulations]
[Pages 42563-42565]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-18266]



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  Federal Register / Vol. 68, No. 138 / Friday, July 18, 2003 / Rules 
and Regulations  

[[Page 42563]]



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: Final rule.

-----------------------------------------------------------------------

SUMMARY: This rule finalizes the interim rule which implemented 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 August 18, 2003. Applicability date: This 
rule does not apply to projects approved prior to the effective date.

FOR FURTHER INFORMATION CONTACT: Marketing Operations Staff, Foreign 
Agricultural Service, Room 4932-S, Stop 1042, U.S. Department of 
Agriculture, 1400 Independence Avenue, 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.

Executive Order 12988

    This 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).

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.

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 provisions of the Paperwork Reduction Act of 
1995, the Foreign Agricultural Service submitted an information 
collection package to the Office of Management and Budget (OMB control 
number 0551-0038) to support an interim rule published in the Federal 
Register on September 10, 2002, (67 FR 57326-57329) which implemented 
the Technical Assistance for Specialty Crops program. Copies of the 
information collection may be obtained from Kimberly Chisley, the 
Agency Information Collection Coordinator, on (202) 720-2568 or by e-
mail to [email protected].

Government Paperwork Elimination Act

    The Foreign Agricultural Service is committed to compliance with 
the Government Paperwork Elimination Act, which requires Government 
agencies, in general, to provide the public the option of submitting 
information or transacting business electronically to the maximum 
extent possible. Accordingly, applications for participation in the 
Technical Assistance for Specialty Crops program may be submitted 
online, and requests for reimbursement as well as all payments to 
participants will be handled electronically.

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.

Background

    The Commodity Credit Corporation (CCC) will periodically publicly 
announce that proposals may be submitted for participation in the 
Technical Assistance for Specialty Crops (TASC) program, which is 
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 
of Agriculture to establish an export assistance program to address 
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 the TASC program in each of fiscal years 2002 through 
2007. The TASC program is designed to assist U.S. organizations by 
providing funding for projects which address sanitary, phytosanitary, 
and technical barriers that prohibit or threaten the export of U.S. 
specialty crops. For the purpose of this rule, U.S. specialty crops 
include all cultivated plants, or the products thereof, produced in the 
U.S., except wheat, feed grains, oilseeds, cotton, rice, peanuts, 
sugar, and tobacco.

Summary and Analysis of Comments

    On September 10, 2002, the CCC published an interim rule in the 
Federal Register (67 FR 57326-57329) implementing the TASC program. 
That rule also requested that interested parties submit comments on the 
rule by November 12, 2002. The FAS received one comment on the interim 
rule.
    Comment: To be more effective in addressing sudden and 
unpredictable technical barriers to trade, access to TASC program funds 
should not be

[[Page 42564]]

limited to once per year. Rather, TASC program funding should be made 
available as the need arises, perhaps by utilizing a quick-response 
mechanism.
    Response: The agency agrees with this comment and has included 
language in Sec.  1487.5 to provide for the establishment of a formal 
quick-response process. The periodic announcements indicating that the 
CCC will be accepting applications also will provide the details of the 
various application options that are available.
    In addition to the language that was incorporated in Sec.  1487.5 
in response to the public comment, this final rule adds a new provision 
in Sec.  1487.6(a)(8) to complement Sec.  1487.2 and clearly indicate 
that the TASC program is intended to benefit the represented industry 
rather than a specific company or brand. This final rule also includes 
other minor organizational, administrative and editorial changes so as 
to improve the clarity and consistency of the regulations.

Effective Date

    This rule is effective August 18, 2003 but does not apply to 
projects approved prior to the effective date.

List of Subjects in 7 CFR Part 1487

    Agricultural commodities, Exports, Specialty crops.

0
In consideration of the foregoing, the interim rule published at 67 FR 
57326-57329, September 10, 2002, adding 7 CFR part 1487 is adopted as 
final with the following changes:

PART 1487--TECHNICAL ASSISTANCE FOR SPECIALTY CROPS

0
1. The authority citation for 7 CFR part 1487 continues to read as 
follows:

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

0
2. Section 1487.1 is amended by adding the following new definitions in 
alphabetical order:


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

* * * * *
    Eligible Organization--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.
* * * * *
    Participant--An entity which has entered into a TASC agreement with 
the CCC.
* * * * *

0
3. Section 1487.5 is amended as follows:
    a. By revising paragraphs (a) and (b)(2)(ii);
    b. By redesignating paragraphs (b)(2l)(iii) through (b)(2)(vii) as 
paragraphs (b)(2)(iv) through (b)(2)(viii); and
    c. By adding a new paragraph (b)(2)(iii).
    The revision and addition read as follows:


Sec.  1487.5  What is the process for submitting proposals?

    (a) General. Periodically the CCC will inform the public of the 
process by which interested eligible organizations may submit proposals 
for TASC program funding. This announcement will, among other things, 
include information on any deadlines for submitting proposals and the 
address of the office to which the proposals should be sent. The CCC 
also may announce the availability of a Quick Response Fund within the 
TASC program. Proposals submitted under any form of quick response 
process may be submitted at any time during the year but must meet the 
basic requirements of the program and any specific requirements of that 
particular process. Organizations interested in participating in the 
TASC program may submit their proposals electronically or in paper 
copy. Although no specific format is required, a sample format for 
proposals is available from the address provided in this rule.
    (b) * * *
    (2) * * *
    (ii) The amount of funding requested and a justification for why 
federal funding is needed;
    (iii) Beginning and ending dates for the proposed project;
* * * * *

0
4. Section 1487.6 is amended as follows:
    a. By removing paragraph (a)(7);
    b. By redesignating paragraph (a)(1) as paragraph (a)(7);
    c. By redesignating paragraphs (a)(2) through (a)(6) as paragraphs 
(a)(1) through (a)(5);
    d. By redesignating paragraph (a)(8) as paragraph (a)(6);
    e. By revising newly redesignated paragraph (a)(2); and
    f. By adding a new paragraph (a)(8).
    The revision and addition read as follows:


Sec.  1487.6  How are proposals evaluated?

    (a) * * *
    (2) The potential trade impact of the proposed project on market 
retention, market access, and market expansion, including the potential 
for expanding commercial sales in the targeted market;
* * * * *
    (8) In cases where the CCC receives multiple proposals from 
different applicants which address essentially the same barrier, the 
nature of the applicant organization will be taken into consideration, 
with a greater weight given to those organizations with the broadest 
base of producer representation.
* * * * *

0
5. Section 1487.7 is revised to read as follows:


Sec.  1487.7  How are agreements formalized?

    Following the approval of a proposal, the CCC will enter into a 
written agreement with the organization that submitted the proposal. 
This program agreement will incorporate the proposal as approved by the 
FAS, include a maximum dollar amount that may be reimbursed (the 
funding level), and identify terms and conditions under which the CCC 
will reimburse certain costs of the project. Program agreements also 
will outline any specific responsibilities of the participant, 
including, but not limited to, the timely and effective implementation 
of program activities and the submission of a written report(s), on no 
less than an annual basis, which evaluates the TASC project using the 
performance measures presented in the approved proposal.

0
6. Section 1487.8 is removed.

0
7. Section 1487.9 is redesignated as 1487.8 and revised to read as 
follows:


Sec.  1487.8  How are payments made?

    (a) Reimbursement. (1) Following the implementation of a project 
for which the CCC has agreed to provide funding, a participant may 
submit claims for reimbursement of eligible expenses to the extent that 
the CCC has agreed to pay such expenses. Any changes to approved 
activities must be approved in writing by the FAS before any 
reimbursable expenses associated with the change can be incurred. A 
participant will be reimbursed after the CCC reviews the claim and 
determines that it is complete.
    (2) All claims for reimbursement must be received no later than 90 
calendar days following the expiration or termination date of the 
program agreement. For program agreements which extend beyond twelve 
months, all claims for reimbursement must be received no later than 90 
calendar days following the next anniversary of the effective date of 
the agreement.
    (3) Participants shall maintain complete records of all program 
expenditures, identified by TASC agreement number, program year, 
country or region, activity number and cost category. Such records 
shall be accompanied by original documentation

[[Page 42565]]

which supports the expenditure and shall be made available to the FAS 
upon request.
    (4) Participants shall maintain all records and documents relating 
to TASC projects, including the original documentation which supports 
reimbursement claims, for a period of three calendar years following 
the expiration or termination date of the program agreement. Such 
records and documents will be subject to verification by the FAS 
Compliance Review Staff and shall be made available upon request to 
authorized officials of the U.S. Government. The FAS may deny a claim 
for reimbursement if the claim is not supported by acceptable 
documentation.
    (5) In the event that a reimbursement claim is overpaid or is 
disallowed after payment already has been made, the participant shall 
return the overpayment amount or the disallowed amount to the CCC 
within 30 days after realizing the overpayment or receiving 
notification of the overpayment or disallowed amount.
    (b) Advances. Participants may request advances of funds, not to 
exceed 85 percent of the funding approved in any given program year. 
All advanced funds must be either fully expended or the balance 
returned by check made payable to the CCC no later than the 90th 
calendar day following the date of disbursement of the advance to the 
participant. Upon the expenditure of advance funds, participants must 
submit reimbursement claims to offset the advance charged to them.
    (c) Interest. Participants shall deposit and maintain advanced 
funds in insured, interest-bearing accounts. Interest earned on 
outstanding advances must be returned by check made payable to the CCC 
at the time the advance is either fully expended or itself returned.

    Dated: July 11, 2003.
A. Ellen Terpstra,
Administrator, Foreign Agricultural Service, and Vice President, 
Commodity Credit Corporation.
[FR Doc. 03-18266 Filed 7-17-03; 8:45 am]
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