[Federal Register Volume 69, Number 32 (Wednesday, February 18, 2004)]
[Rules and Regulations]
[Pages 7541-7547]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-3428]



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  Federal Register / Vol. 69, No. 32 / Wednesday, February 18, 2004 / 
Rules and Regulations  

[[Page 7541]]



DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection Service

7 CFR Part 318

[Docket No. 03-062-2]


Irradiation of Sweetpotatoes From Hawaii

AGENCY: Animal and Plant Health Inspection Service, USDA.

ACTION: Affirmation of interim rule as final rule.

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SUMMARY: We are adopting as a final rule, without change, an interim 
rule that amended the regulations to provide for the use of irradiation 
as a treatment for sweetpotatoes to be moved interstate from Hawaii. 
The interim rule also provided that the sweetpotatoes have to meet 
certain additional requirements, including inspection and packaging 
requirements. The interim rule provided for the use of irradiation as 
an alternative to methyl bromide for the treatment of sweetpotatoes 
moving interstate from Hawaii.

EFFECTIVE DATE: The interim rule became effective on June 26, 2003.

FOR FURTHER INFORMATION CONTACT: Dr. Inder P. Gadh, Import Specialist, 
Phytosanitary Issues Management Team, PPQ, APHIS, 4700 River Road, Unit 
140, Riverdale, MD 20737-1236; (301) 734-6799.

SUPPLEMENTARY INFORMATION:

Background

    The regulations in 7 CFR part 318 prohibit or restrict the 
interstate movement of fruits, vegetables, and certain other articles 
from Hawaii, Puerto Rico, the U.S. Virgin Islands, and Guam to prevent 
the introduction and dissemination of plant pests into the continental 
United States.
    Within part 318, ``Subpart--Sweetpotatoes'' (Sec.Sec. 318.30 and 
318.30a, referred to below as the regulations) quarantines Hawaii, 
Puerto Rico, and the U.S. Virgin Islands because of the sweetpotato 
scarabee (Euscepes postfasciatus Fairm. [Coleoptera: Curculionidae], 
also known as the West Indian sweetpotato weevil) and the sweetpotato 
stem borer (Omphisa anastomosalis Guen. [Lepidoptera: Crambidae], also 
known as the sweetpotato vine borer) and restricts the interstate 
movement of sweetpotatoes (Ipomoea batatas Poir.) from those places.
    In an interim rule effective and published in the Federal Register 
on June 26, 2003 (68 FR 37931-37936, Docket No. 03-062-1), we amended 
the regulations governing the interstate movement of sweetpotatoes from 
Hawaii by providing for the use of irradiation as a treatment for 
sweetpotatoes to be moved interstate from Hawaii. The interim rule 
provided that the sweetpotatoes must be irradiated at a dose of 400 Gy 
(40 krad) and must also meet certain additional requirements, including 
inspection and packaging requirements. The interim rule provided an 
alternative to fumigation with methyl bromide for the treatment of 
Hawaiian sweetpotatoes.
    Comments on the interim rule were required to be received on or 
before August 25, 2003. We received three comments by that date. The 
comments were from an entomologist, a public interest group, and an 
industry association. The comments are discussed below by topic.

General Comments

    One commenter noted that sweetpotato growers in the mainland United 
States have made continuing efforts to control insect pests that affect 
their production of sweetpotatoes, such as wire worms, cucumber beetle, 
flea beetle, grubs, fusarium, pox, and nematodes. This commenter 
further noted that sweetpotato breeders are working to develop 
varieties of sweetpotato that are resistant to these pests. The 
commenter recommended that, rather than risk the introduction of new 
pests of sweetpotatoes into the mainland United States, the Hawaiian 
growers interested in moving their sweetpotatoes interstate contract 
with sweetpotato breeders to develop varieties of sweetpotato that are 
resistant to the pests named in the pest risk assessment (PRA) that we 
conducted as a basis for the interim rule.
    Prior to the interim rule, sweetpotatoes from Hawaii were allowed 
to move interstate if they had been fumigated with methyl bromide to 
mitigate the risks identified in the PRA. The interim rule simply 
provided sweetpotato growers with an alternative treatment, 
irradiation, that we believe is equally effective at mitigating the 
same risks. Hawaiian sweetpotato growers are free to develop varieties 
of sweetpotato that are resistant to sweetpotato pests present in 
Hawaii, but the Animal and Plant Health Inspection Service (APHIS) has 
no authority to compel them to do so. We believe that both fumigation 
and irradiation effectively mitigate the risk of pest introduction 
associated with the interstate movement of sweetpotatoes from Hawaii. 
We are making no changes in response to this comment.
    One commenter pointed out two spelling errors in the preamble of 
the interim rule and requested two other nonsubstantive clarifications 
to language in the preamble. Because these comments do not affect the 
regulatory language we established in the interim rule, we are making 
no changes to the interim rule in response to these comments. However, 
we have corrected the spelling of the previously misspelled terms and 
used the clarifications suggested by the commenter in the discussion of 
comments below.

Risk Mitigation Measures

    One commenter objected to the inclusion of the ginger weevil 
(Elytroteinus subtruncatus [Coleoptera: Curculionidae]) on the list of 
quarantine pests associated with the interstate movement of sweetpotato 
from Hawaii. (The PRA that was the basis for the interim rule included 
the ginger weevil as a quarantine pest associated with such movement 
because it had been found as a hitchhiker on sweetpotato from Hawaii.) 
This commenter stated that the ginger weevil has not been documented as 
a pest of sweetpotato and that the interception data did not provide a 
sufficient basis for including the ginger weevil as a quarantine pest 
associated with the interstate movement of sweetpotato from Hawaii.
    As the PRA stated, we do not have evidence that can confirm that 
sweetpotatoes do not serve as a host for

[[Page 7542]]

the ginger weevil. In any case, fumigation with methyl bromide or the 
alternative irradiation treatment provided by the interim rule remains 
necessary to neutralize the sweetpotato scarabee and the sweetpotato 
stem borer, whose association with the interstate movement of 
sweetpotatoes from Hawaii this commenter did not dispute. Therefore, we 
are making no changes to the alternative irradiation treatment provided 
for by the interim rule in response to this comment.
    One commenter requested that we clarify the meaning of the term 
``neutralize'' as it applies to the effects of irradiation treatment on 
plant pests.
    A pest is considered to have been neutralized by a treatment if the 
treatment has prevented the pest from establishing itself in an area 
where it is not currently present. For irradiation treatment, 
neutralizing a pest generally refers to either sterilizing the pest or 
preventing it from achieving sexual maturity, although irradiation 
treatment can in some cases kill pests that may be present.
    Two commenters objected to the fact that the interim rule was 
promulgated before specific research was completed to determine the 
dose necessary to neutralize the three pests that the PRA identified as 
targets for treatment: The ginger weevil, the sweetpotato scarabee, and 
the sweetpotato stem borer. One commenter pointed out that, although we 
based the dose of 400 Gy required by the interim rule on estimated 
minimum absorbed doses in the International Plant Protection Convention 
(IPPC) Guidelines for the Use of Irradiation as a Phytosanitary Measure 
(ISPM Publication No. 18), the research from which these estimated 
minimum absorbed doses were developed does not provide specific doses 
for neutralizing the ginger weevil or the sweetpotato stem borer. Both 
commenters requested that APHIS prohibit the treatment of sweetpotatoes 
moved interstate from Hawaii with irradiation until pest-specific 
research has been completed.
    APHIS published a notice of policy titled ``The Application of 
Irradiation to Phytosanitary Problems'' in the Federal Register on May 
15, 1996 (61 FR 24433-24439, Docket No. 95-088-1). In the section of 
that notice dealing with research protocols for determining appropriate 
doses and conditions for quarantine treatment, we stated that ``In some 
instances, efficacy [of a minimum absorbed dosage] may be inferred from 
the literature for related species and commodities when complete 
laboratory investigations are not possible.''
    As we discussed in the interim rule, immediate action to allow the 
use of irradiation as an alternative treatment was warranted to 
alleviate the negative economic effects that Hawaiian growers and 
shippers faced as a result of our previous regulations, which 
identified fumigation as the only acceptable treatment for Hawaiian 
sweetpotatoes moved interstate. Fumigation facilities are unavailable 
on some islands in Hawaii on which sweetpotatoes are grown, and 
producers of sweetpotatoes on those islands must pay additional 
transportation costs for treatment before moving their sweetpotatoes 
interstate. Because a more accessible irradiation facility that 
provides the desired phytosanitary security was available to these 
producers, the requirement that sweetpotatoes must be fumigated to be 
moved interstate imposed an unnecessary economic hardship on these 
producers. Because we needed to take immediate action, we were not able 
to complete pest-specific research; therefore, in accordance with our 
notice of policy, we reviewed the available literature on related 
species and commodities to determine what dose would be effective at 
neutralizing the pests of concern.
    The estimated minimum absorbed doses for certain responses for 
selected pest groups found in Appendix I of the IPPC guidelines were 
based on literature reviews by G.J. Hallman and the International 
Atomic Energy Agency's International Database on Insect Disinfestation 
and Sterilization (IDIDAS).\1\ As discussed above, specific research 
has not been completed to determine the dose necessary to completely 
neutralize the ginger weevil, the sweetpotato scarabee, and the 
sweetpotato stem borer. However, the IDIDAS does cite a study 
indicating that a dose of 100 Gy (10 krad) is sufficient to induce 90 
percent sterility in the sweetpotato scarabee.
---------------------------------------------------------------------------

    \1\ Available at http://www-ididas.iaea.org.
---------------------------------------------------------------------------

    The sweetpotato scarabee and the ginger weevil are stored product 
beetles classified under the order Coleoptera; the sweetpotato stem 
borer is a borer classified under the order Lepidoptera. The IDIDAS and 
the literature review by Hallman include references to studies of other 
pests of the order Coleoptera and other pests of the order Lepidoptera; 
the IPPC estimated minimum absorbed doses were derived from a general 
assessment of these references. The IPPC guidelines recommend a minimum 
absorbed dose of 50 to 400 Gy (5 to 40 krad) to sterilize actively 
reproducing adults of pests of the order Coleoptera and a minimum 
absorbed dose of 100 to 280 Gy (10 to 28 krad) to sterilize actively 
reproducing adults of pests of the order Lepidoptera. The dose of 400 
Gy (40 krad) required by the interim rule is well above the IPPC 
guidelines' minimum dose range for borers of the order Lepidoptera and 
at the top of the minimum dose range for stored product beetles of the 
order Coleoptera. In our literature review, we determined that the 
ginger weevil, the sweetpotato scarabee, and the sweetpotato stem borer 
are biologically similar enough to other members of their respective 
orders, most of which are neutralized at doses well below 400 Gy (40 
krad), that we believe that the 400 Gy (40 krad) dose required by the 
interim rule is a conservative minimum requirement that will be 
effective at neutralizing those three pests.
    In addition, as we stated in the interim rule, preliminary research 
conducted by the USDA's Agricultural Research Service on the 
sweetpotato scarabee and the sweetpotato stem borer indicates that 
irradiating sweetpotatoes with a dose of 400 Gy (40 krad) kills all of 
these pests if they are present in the sweetpotatoes. According to this 
research, a dose of 250 to 300 Gy (25 to 30 krad) is sufficient to stop 
reproduction in these pests. (In the preamble of the interim rule, we 
incorrectly stated that the preliminary research mentioned here had 
found that a dose of 200 Gy [20 krad] was sufficient to stop 
reproduction in these pests; one commenter supplied us with the revised 
figure, and we have used it here.) Given this information, we continue 
to believe that the minimum dose of 400 Gy (40 krad) required by the 
interim rule is a conservative minimum requirement that will neutralize 
all three of the pests targeted by the treatment. We are making no 
changes in response to these comments.
    One commenter noted that the preamble of the interim rule stated 
that requiring visual inspection for the gray pineapple mealybug and 
the Kona coffee root-knot nematode as a condition of the interstate 
movement of sweetpotato from Hawaii ``is consistent with the 
recommendations of the pest risk assessment.'' The commenter also noted 
that the PRA states at one point that ``Port of entry inspections 
appear insufficient to safeguard U.S. agriculture.'' The commenter 
believed that these statements were inconsistent.
    The statement ``Port of entry inspections appear insufficient to 
safeguard U.S. agriculture'' can be found in the executive summary of 
the PRA; it refers to the overall pest risk presented by the interstate 
movement of sweetpotatoes from Hawaii before

[[Page 7543]]

mitigations are applied and is not a characterization of any of the 
mitigation measures recommended in the PRA for any specific pests. The 
PRA found that the gray pineapple mealybug and the Kona coffee root-
knot nematode have pest risk potential values of ``medium'' and 
``low,'' respectively. Pests with pest risk potential values of ``low'' 
typically do not require specific mitigation measures, while specific 
phytosanitary measures may be necessary for pests with values of 
``medium.'' Because the two pests in question are external pests, we 
believe they can be visually detected by inspectors. We are making no 
changes in response to this comment.
    One commenter questioned the reliability of visual inspection for 
detecting whether the gray pineapple mealybug and the Kona coffee root-
knot nematode are present on sweetpotatoes moved interstate from 
Hawaii.
    We are confident that all inspectors have the training and skills 
necessary to visually detect these pests.
    One commenter asked what safeguards were in place to prevent the 
escape of pests from Hawaiian sweetpotatoes moved interstate if the 
sweetpotatoes were moved to a facility within the continental United 
States for irradiation treatment.
    The interim rule requires that sweetpotatoes moved interstate from 
Hawaii to a facility within the continental United States for 
irradiation treatment must be moved under limited permit. Any shipping 
containers of sweetpotatoes moved interstate from Hawaii to a facility 
within the continental United States for treatment must also be sealed. 
In addition, the sweetpotatoes must be visually inspected and found to 
be free of gray pineapple mealybug and the Kona coffee root-knot 
nematode before they are moved interstate from Hawaii for treatment. We 
believe these safeguards are adequate to prevent the escape of any 
pests that may be present prior to the irradiation of the 
sweetpotatoes. We are making no changes in response to this comment.

Economic Analysis

    One commenter questioned the economic viability of Hawaiian 
sweetpotato production in the context of the interim rule. The 
commenter noted that the economic analysis in the interim rule gave the 
farm price of Hawaiian sweetpotatoes as 50 cents per cwt \2\ for 2001, 
as reported by the Hawaiian Agricultural Statistical Service, while the 
farm price of sweetpotatoes in the mainland United States averaged 17 
cents per cwt in 2002. In addition, production per acre of Hawaiian 
sweetpotatoes was far less than sweetpotato production per acre in 
mainland States. Given the additional costs of treatment and 
transportation from Hawaii to the mainland United States, the commenter 
asked how Hawaiian sweetpotato growers could expect to make a profit by 
moving their crop interstate. This question, in the commenter's view, 
cast doubt on the wisdom of allowing irradiation to be used as an 
alternative to fumigation with methyl bromide as a treatment for 
sweetpotatoes moved interstate from Hawaii, as the use of irradiation 
as an alternate treatment increased the risk of pest introduction via 
sweetpotatoes moved interstate from Hawaii and would not benefit 
Hawaiian producers of sweetpotatoes, since they would be unable to 
compete with mainland producers.
---------------------------------------------------------------------------

    \2\ ``cwt'' is an abbreviation for ``hundredweight,'' a commonly 
used unit of production for sweetpotatoes. One hundredweight equals 
100 pounds.
---------------------------------------------------------------------------

    The sweetpotatoes grown in Hawaii and intended for interstate 
movement are a special purple variety, known as the Okinawan 
sweetpotato. Because the sweetpotatoes produced in Hawaii are a 
specialty product, the prevailing price for the crops of Hawaiian 
sweetpotato growers may be different than that of the crops of mainland 
sweetpotato producers. We have clarified this point in the economic 
analysis in this affirmation of the interim rule. However, this 
information does not affect our conclusion that irradiation is an 
effective alternative treatment to fumigation with methyl bromide for 
sweetpotatoes moved interstate from Hawaii.
    Two commenters expressed concern that allowing irradiation as an 
alternative to fumigation with methyl bromide for treatment of 
sweetpotatoes moving interstate from Hawaii might result in significant 
economic effects for producers of sweetpotatoes in the mainland United 
States. One stated that the opening of the market for sweetpotatoes in 
the mainland United States for sweetpotatoes from Hawaii would probably 
result in increased production in Hawaii, and that the increased 
production would compete directly with the sweetpotatoes produced in 
the mainland United States; thus, even though current production of 
Hawaiian sweetpotatoes would not have a significant impact on a 
substantial number of small entities, the commenter asserted that such 
an impact was possible in the future. The other commenter, in reference 
to our statement that ``even if the irradiation treatment leads to 
increased production of sweetpotatoes, sweetpotato shipments from 
Hawaii are unlikely to affect mainland producers negatively,'' asked 
how we had determined this, and further asked why we had not determined 
the elasticity of demand for sweetpotatoes before issuing the interim 
rule. The commenter also asserted that any amount of additional 
competition in the mainland market for sweetpotatoes is likely to have 
significant negative economic effects on mainland sweetpotato growers.
    In the economic analysis in the interim rule, we stated that any 
increases in the volume of sweetpotatoes moved interstate from Hawaii 
due to the addition of irradiation as an alternative treatment would 
not significantly affect mainland sweetpotato producers because 
Hawaiian sweetpotato production is extremely small compared to total 
U.S. sweetpotato production. Hawaiian sweetpotato production in 2001, 
the last year for which State data are available, was 1.8 million 
pounds; total U.S. sweetpotato production in 2003 is estimated by the 
U.S. Department of Agriculture's Economic Research Service (ERS) to be 
1.36 billion pounds. Producers have started new plantings of Hawaiian 
sweetpotatoes since the interim rule became effective and the 
irradiation treatment became available; however, even with these 
plantings, Hawaiian sweetpotato production will still be extremely 
small as a percentage of total U.S. sweetpotato production. In 
addition, as noted above, Hawaiian sweetpotatoes are intended for niche 
markets due to their special purple color. Thus, as long as 
sweetpotatoes moved interstate from Hawaii are treated in accordance 
with the regulations, there is no apparent reason for APHIS to expect 
these shipments to affect mainland producers negatively. Based on this 
evidence, we believe an extensive analysis of U.S. demand for 
sweetpotatoes is unnecessary.
    Regarding the comment that the interim rule opened the mainland 
U.S. sweetpotato market to Hawaiian sweetpotatoes, we would like to 
emphasize that Hawaiian sweetpotatoes had previously been allowed to 
move interstate after fumigation with methyl bromide. The interim rule 
simply provided that irradiation could be used as an alternative to 
fumigation.
    In the economic analysis in the interim rule, we cited statistics 
indicating that domestic sweetpotato production grew 15 percent between 
1989-1991 and 1999-2001. Two commenters stated that this statistic 
could be misleading. One pointed out that per capita potato consumption 
has

[[Page 7544]]

remained flat since 1989-1991 at 4.1 pounds per person, according to 
ERS. The other asserted that sweetpotato production has become 
essentially cyclical in the last 30 years, as rising prices lead to 
increased production, which leads to falling prices, which lead in turn 
to less production.
    The statistics we cited in the interim rule referred to production, 
and not to consumption; they were cited to provide background on U.S. 
sweetpotato production. We stated in the economic analysis in the 
interim rule that sweetpotato production had peaked in 1932 and then 
demonstrated a long-term downward trend. However, analysis of the time 
series data shows that--though the long-term trend has been declining, 
and production fluctuated from year to year--an increasing trend in 
sweetpotato production has prevailed since 1989.
    Responding to the statement in the interim rule's economic analysis 
that the total volume of sweetpotatoes moved interstate from Hawaii was 
not likely to exceed 100 containers due to production limitations, one 
commenter asked us to express that amount in pounds.
    A typical shipping container used to transport Hawaiian 
sweetpotatoes can hold about 24,000 pounds of sweetpotatoes, so the 
total volume of sweetpotatoes moved interstate from Hawaii each year 
would not be likely to exceed 2.4 million pounds, even if Hawaii were 
to produce its maximum possible volume of sweetpotatoes. As noted 
earlier, current yearly Hawaiian sweetpotato production is 1.8 million 
pounds.
    Approximately 30,000 to 40,000 pounds of sweetpotatoes are now 
moved interstate from Hawaii to the mainland United States per week, 
although these shipments have occurred during the low season and 
industry representatives expect their volume to increase. We have added 
this information to the economic analysis in this affirmation of the 
interim rule.
    One commenter asked several questions about the capacity of the 
irradiation facility currently operating in Hawaii to treat 
sweetpotatoes to be moved interstate from Hawaii.
    Because this capacity will vary according to the number of 
individual shipments treated in the facility and the number of pallets 
of sweetpotatoes per shipment, we cannot provide a definite answer. 
Extensive data on the volume of sweetpotatoes treated at the Hawaiian 
facility are not yet available to us and will only be generated as the 
operation of the facility continues.
    Regarding the two points discussed above, one commenter was 
confused as to whether the limitations on Hawaii's production capacity 
relate to the fact that if the capacity of the irradiation facility 
currently operating in Hawaii is not enough to treat all the 
sweetpotatoes producers and shippers wish to move interstate, 
sweetpotatoes may be shipped to mainland irradiation facilities for 
treatment.
    These two capacities are independent. If sweetpotatoes cannot be 
irradiated at the irradiation facility currently operating in Hawaii, 
they must be irradiated on the mainland or fumigated with methyl 
bromide in order to be eligible to move interstate.
    One commenter asked whether production of Hawaiian sweetpotatoes is 
seasonal.
    Hawaiian sweetpotatoes are produced and moved interstate throughout 
the year, but there is some seasonal variation in volume, according to 
industry representatives; production during the high season can be 
about three times the production during the low season. We have added 
this information to the economic analysis in this affirmation of the 
interim rule.
    One commenter noted that, under some circumstances, fumigation with 
methyl bromide could be less expensive than irradiation treatment for 
sweetpotatoes moved interstate from Hawaii. The commenter asked how we 
could know that Hawaiian sweetpotato producers and shippers would use 
irradiation treatment and what percentage of the Hawaiian sweetpotato 
crop we would expect to be irradiated.
    The interim rule provided Hawaiian sweetpotato producers and 
shippers with an additional option for treating their product prior to 
moving it interstate; these producers and shippers are free to choose 
the alternative they prefer. As stated in the economic analysis, the 
fumigation of larger volumes of sweetpotatoes may, at some volumes, be 
performed at a lower per-unit cost than irradiation. However, 
irradiation can be performed at a more convenient location for some 
producers and eliminates the costs associated with transport between 
islands and overtime costs for APHIS monitoring of the fumigation 
process. It is also possible that the economic attractiveness of the 
irradiation option might increase in the future, since the supply of 
methyl bromide will diminish in the future due to the requirements of 
the Montreal Protocol, and the cost of fumigation is expected to 
increase accordingly. As discussed above, however, extensive data on 
the volume of sweetpotatoes treated at the Hawaiian facility are not 
yet available to us and will only be generated as the operation of the 
facility continues.
    One commenter asked why Hawaii could not simply consume its own 
sweetpotato production, rather than moving sweetpotatoes interstate to 
the mainland United States.
    APHIS has no authority over the movement of goods in interstate 
commerce except when such movement poses a plant or animal health risk. 
Hawaiian sweetpotato producers and shippers wish to move their 
sweetpotatoes interstate, and the interim rule provided an alternate 
treatment that gave those producers and shippers more options for 
interstate movement.
    For one commenter, the interim rule appeared to be a deliberate 
attempt to benefit Hawaiian sweetpotato growers at the expense of 
mainland sweetpotato growers. The commenter cited in particular the 
statement in the economic analysis of the interim rule that providing 
the alternative irradiation treatment ``may lead to increased 
production of sweetpotatoes in Hawaii if the lower cost of treatment 
makes sweetpotato a more profitable crop to produce and ship.'' The 
commenter took from this statement an implication that Hawaiian 
sweetpotato was already profitable and that APHIS was seeking to make 
it more profitable, and was concerned that a rule designed to make one 
production area more profitable than others within the United States 
would be unfair.
    APHIS establishes regulations to address animal and plant health 
risks. Of all the States, only sweetpotatoes grown in Hawaii, Puerto 
Rico, and the U.S. Virgin Islands are required to be treated prior to 
interstate movement. Allowing irradiation to be used as an alternative 
to methyl bromide for treatment of sweetpotatoes moved interstate from 
Hawaii was not intended to favor producers in Hawaii over producers in 
other States, but rather to provide Hawaiian producers with another 
means of complying with the interstate movement restrictions they face.
    One commenter asked whether the economic benefits gained by the 
irradiation treatment facility currently operating in Hawaii were our 
motivation for allowing irradiation to be used to treat sweetpotatoes 
moving interstate from Hawaii.
    We stated our motivation for allowing irradiation as an alternate 
treatment in the interim rule under the heading ``Immediate Action.'' 
Immediate action was warranted to alleviate the negative economic 
effects that Hawaiian growers and shippers faced as a result of our

[[Page 7545]]

previous regulations, which required fumigation as the only acceptable 
treatment for Hawaiian sweetpotatoes moved interstate. Fumigation 
facilities are unavailable on some islands in Hawaii on which 
sweetpotatoes are grown, and producers of sweetpotatoes on those 
islands must pay additional transportation costs for treatment before 
moving their sweetpotatoes interstate. Because a more accessible 
irradiation facility that provides the desired phytosanitary security 
was available to these producers, the requirement that sweetpotatoes 
must be fumigated to be moved interstate imposed an unnecessary 
economic hardship on these producers. The interim rule made irradiation 
treatment available to those producers.
    One commenter supplied us with more current data on the operations 
of the irradiation treatment facility currently operating in Hawaii:
     We stated in the interim rule's economic 
analysis that the irradiation facility is used to treat bell peppers, 
eggplants, mangoes, papayas, pineapples (other than smooth Cayenne), 
Italian squash, and tomatoes. Although the regulations allow 
irradiation to be used as a treatment for bell peppers, eggplants, 
pineapples, Italian squash, and tomatoes to be moved interstate from 
Hawaii, the irradiation facility is currently not being used to treat 
these commodities. However, the facility is treating atemoya, 
carambola, litchi, longan, and rambutan.
     We also stated in the interim rule's economic 
analysis that some Hawaiian fruits and vegetables are sometimes shipped 
to irradiation facilities in the mainland United States for treatment. 
The commenter stated that all the produce for which irradiation is an 
approved treatment is currently treated in Hawaii before it is moved 
interstate.
    We have updated the economic analysis accordingly.
    Therefore, for the reasons given in the interim rule and in this 
document, we are adopting the interim rule as a final rule without 
change.
    This action also affirms the information contained in the interim 
rule concerning Executive Orders 12866, 12372, and 12988 and the 
Paperwork Reduction Act.
    Further, for this action, the Office of Management and Budget has 
waived its review under Executive Order 12866.

Regulatory Flexibility Act

    This rule affirms an interim rule that amended the regulations to 
provide for the use of irradiation as a treatment for sweetpotatoes to 
be moved interstate from Hawaii. The interim rule also provided that 
the sweetpotatoes have to meet certain additional requirements, 
including inspection and packaging requirements. The interim rule 
provided for the use of irradiation as an alternative to methyl bromide 
for the treatment of sweetpotatoes moving interstate from Hawaii.
    The following analysis addresses the economic effect of this rule 
on small entities, as required by the Regulatory Flexibility Act.

Economic Importance of Sweetpotatoes in Hawaii and the Mainland United 
States

    Commercial sweetpotato production in Hawaii occurs on the islands 
of Hawaii, Kauai, Maui, and Oahu. There were 53 sweetpotato farms in 
Hawaii in 1997.\3\ In 2001, the production of sweetpotatoes in Hawaii 
amounted to 1.8 million pounds, and the value of sales of these 
sweetpotatoes was $900,000 (table 1). The sweetpotatoes intended for 
interstate movement are of a special purple flesh variety known as the 
Okinawan sweetpotato. The crop is in year-round production in Hawaii.
---------------------------------------------------------------------------

    \3\ Census of Agriculture, 1997, National Agricultural 
Statistics Service (NASS).

    Table 1.--Production Statistics for Hawaiian Sweetpotatoes (2001)
------------------------------------------------------------------------
                            Item                                Amount
------------------------------------------------------------------------
Harvested acres.............................................       220
Yield per acre (1,000 pounds)...............................         8.2
Production (1,000 pounds)...................................     1,800
Farm price (cents per pound)................................        50
Value of sales (1,000 dollars)..............................      900
------------------------------------------------------------------------
Source: Hawaii Agricultural Statistics Service.

    In the continental United States, sweetpotato is grown commercially 
in Alabama, California, Georgia, Louisiana, Mississippi, New Jersey, 
North Carolina, South Carolina, Texas, and Virginia.\4\ North Carolina, 
Louisiana, Mississippi, and California account for the major proportion 
of production area by State (table 2). In total, the United States 
produced 1.36 billion pounds of sweetpotatoes from 93,500 acres in 2003 
(table 3).
---------------------------------------------------------------------------

    \4\ NASS, 1999.

  Table 2.--Acres of Sweet potatoes Planted in the United States (2003)
------------------------------------------------------------------------
                                                                  Acres
                             State                               planted
------------------------------------------------------------------------
North Carolina................................................    42,000
Louisiana.....................................................    18,000
Mississippi...................................................    14,000
California....................................................    10,100
Texas.........................................................     3,400
Alabama.......................................................     2,900
Others \1\....................................................     3,100
                                                               ---------
  Total.......................................................   93,500
------------------------------------------------------------------------
\1\ Including Hawaii.
 Source: Economic Research Service, USDA.

    The crop is grown on 1,770 farms, which represents a decrease of 44 
percent since 1987.\5\ Production of sweetpotatoes peaked in 1932 when 
48 million cwt was generated, followed by a long-term downward trend in 
production. However, sweetpotato production trended higher again after 
1988, and increased by 15 percent between 1989-1991 and 1999-2001. Farm 
cash receipts averaged $214 million over the period 1999-2001. Few 
imports of sweetpotatoes enter the continental United States, with 97 
percent of the import volume moving directly from the Dominican 
Republic into Puerto Rico. The Hawaiian sweetpotato production of 1.8 
million pounds thus comprises a fairly minor proportion of the total 
production of 1.36 billion pounds in the United States.
---------------------------------------------------------------------------

    \5\ Lucier, G. ``Sweet potatoes--getting to the root of 
demand.'' Economic Research Service, USDA, 2002.

 Table 3.--Production and Utilization Statistics for Sweet- potatoes in
                      the United States (2003) \1\
------------------------------------------------------------------------
                             Item                                Amount
------------------------------------------------------------------------
Acres planted................................................  93,500
Three year average yield (cwt/acre)..........................     150
Production (million pounds)..................................   1,355
Imports (million pounds).....................................      17.0
Exports (million pounds).....................................      53.0
Total utilization (million pounds) \2\.......................   1,148.3
Per capita use (pounds)......................................       3.9
Three year average per capita use (pounds)...................       4.0
Current dollars ($/cwt)......................................      15.75
Constant 1996 dollars ($/cwt)................................      13.91 
------------------------------------------------------------------------
\1\ Estimates are for the total United States, and therefore include
  Hawaii. Forecasted estimates are shown.
\2\ Total utilization includes 103 million pounds used for seed and 67.8
  million pounds accruing to feed use, shrink, and loss.

[[Page 7546]]

 
 Source: Economic Research Service, United States Department of
  Agriculture. Acres were obtained from Lucier.\6\

    More than three-quarters of the annual U.S. sweetpotato crop is 
sold as human food, and around two-thirds of the total sales are for 
the fresh market. About a quarter of the sweetpotatoes sold for food 
are processed into frozen products, and 2 to 3 percent are chipped or 
dehydrated. U.S. sweetpotato utilization averaged 1.1 billion pounds 
during 1999-2001, accounting for almost 3.9 pounds per capita.
---------------------------------------------------------------------------

    \6\ Lucier, G., ibid.
---------------------------------------------------------------------------

Treatment Costs

Costs of Methyl Bromide Fumigation

    Methyl bromide fumigation is currently conducted on the Island of 
Oahu. The product has to be moved by barge from the port of Hilo on the 
Island of Hawaii to the port of Honolulu on Oahu. The charge for such 
transportation is between 2 to 3 cents per pound. A pallet of 
sweetpotatoes weighs 1,500 pounds (50 30-pound boxes), so the charge is 
approximately $35 per pallet for a non-chilled shipment. Trucking and 
handling charges to move the sweetpotatoes from the pier on Oahu to the 
fumigation site and, after fumigation, back to the pier or to the 
airport are estimated at $34 per pallet.
    The per-unit cost of methyl bromide fumigation is influenced by the 
number of pallets treated. Costs are $610 for 1 to 6 pallets, $1,026 
for 7 to 9, and $1,250 for 10 to 12. The minimum charge is $610. Per-
unit cost thus decreases as more pallets are treated within these 
ranges. For example, the cost decreases from 40.6 cents per pound to 
6.7 cents per pound if six pallets instead of only one pallet are 
treated at $610 (table 4).

 Table 4.--Costs of Methyl Bromide Fumigation of Hawaiian Sweetpotatoes
------------------------------------------------------------------------
                                                                 Cost
               Number of  pallets                   Weight    (cents per
                                                   (pounds)     pound)
------------------------------------------------------------------------
One.............................................      1,500         40.6
Two.............................................      3,000         20.3
Three...........................................      4,500         13.5
Four............................................      6,000         10.1
Five............................................      7,500          8.1
Six.............................................      9,000          6.7
Nine............................................     13,500          7.6
Twelve..........................................     18,000         6.9
------------------------------------------------------------------------
 Source: Hawaii Department of Agriculture.

    APHIS monitoring of the treatment costs $368 per treatment. This is 
based on a minimum of 2 hours required to set up for the fumigation, a 
minimum of 2 hours for necessary after-treatment labor such as 
certification, and 2 hours minimum travel time each way to monitor the 
fumigation. The total 8 hours at $46 per hour amounts to $368. Due to 
the time delays involved in inter-island movements of sweetpotatoes, 
all fumigations are conducted after 4 p.m. or on weekends, which means 
that APHIS treatment monitors are paid ``time-and-a-half'' wages. If 
the sweetpotatoes being treated belong to more than one shipper, the 
APHIS costs are evenly divided between the shippers, regardless of the 
relative quantities treated for each shipper. For example, if two 
shippers are involved, each would pay $184, even if one shipper's 
sweetpotatoes comprised more than half of the total treated. APHIS 
monitoring costs for fumigation do not vary with the number of 
sweetpotatoes treated.
    Various time delays are involved in the inter-island movement of 
the sweetpotatoes for fumigation, meaning that this transportation is 
sometimes problematic. Shipments from the main island, Hawaii, 
generally leave Hilo on Monday, with the barge arriving at Oahu on 
Wednesday. These shipments are treated on Wednesday or Thursday and 
arrive by Friday on the mainland U.S. west coast if transported by air. 
The barge that leaves Hilo on Thursday arrives at Oahu on Saturday. 
Weekend fumigation is conducted at significantly higher costs and 
Sunday pickup at the pier is not allowed. Thus, shipping sweetpotatoes 
on the Thursday barge is generally avoided.\7\
---------------------------------------------------------------------------

    \7\ Source: Hawaii Department of Agriculture.
---------------------------------------------------------------------------

    There are also concerns regarding the future cost and availability 
of methyl bromide given the continuing reductions in the use of methyl 
bromide mandated by the Montreal Protocol, which governs the use of 
substances that deplete stratospheric ozone; in 2005, all uses of 
methyl bromide in developed countries other than quarantine and pre-
shipment applications and critical or emergency uses will be 
prohibited. The price of methyl bromide has increased significantly as 
worldwide production of methyl bromide has decreased from its 1991 
baseline. According to the U.S. Environmental Protection Agency, U.S. 
west coast end-user prices of methyl bromide have increased from $1.25 
per pound to $4.50 per pound over the period 1995 to 2001. This 
represents an increase of 366 percent. Further price increases are 
deemed likely as the 2005 phase-out date approaches.

Costs of Irradiation

    The cost of irradiation is estimated at 15 cents per pound.\8\ Lot 
sizes will be as requested by shippers. Irradiation treatment generally 
occurs between 8 a.m. and 4 p.m. At these times, an APHIS inspector 
would already be onsite at the irradiation facility to monitor the 
treatment under the terms of the compliance agreement irradiation 
facilities must operate under in order to treat fruits and vegetables 
from Hawaii for interstate movement. Therefore, there would generally 
be no additional APHIS charges associated with irradiation treatment. 
Shippers could choose to have their sweetpotatoes treated outside of 
normal hours and thus incur APHIS charges for overtime labor, but such 
scheduling would be optional; as noted above, all fumigation treatments 
currently must be conducted during overtime hours.
---------------------------------------------------------------------------

    \8\ Source: Hawaii Department of Agriculture.
---------------------------------------------------------------------------

    The irradiation will occur mostly at an existing facility in 
Hawaii, prior to the shipment of the sweetpotatoes to the mainland 
United States. The X-ray irradiation facility in Hawaii commenced its 
commercial operation on August 1, 2000. At first, only papayas were 
treated. Five hundred to 1,000 boxes of papayas are treated per day, 4 
times a week. The facility is currently also used to treat other 
Hawaiian fruits and vegetables for which irradiation is an approved 
treatment. At present, all of the fruits and vegetables produced in 
Hawaii for which irradiation is an approved treatment are irradiated in 
Hawaii before they are moved interstate.
    The Hawaiian sweetpotatoes intended for the U.S. mainland markets 
are of a special purple flesh variety. The crop therefore comprises a 
specialty product intended for niche markets. The sweetpotatoes are in 
year-round production in Hawaii, but some seasonal variation in volume 
is expected. Out-shipment of the sweetpotatoes has been estimated at 
50,000 to 60,000 pounds per week, and an estimated 30,000 to 40,000 
pounds per week has been shipped since the interim rule was published. 
However, these weekly shipments occurred during the low season, and 
industry representatives expect the shipments to increase. New 
plantings of the crop have also commenced since the irradiation 
treatment became available.

Benefits of Irradiation Treatment

    The approval of irradiation as an alternative treatment for 
sweetpotatoes moved interstate from Hawaii will

[[Page 7547]]

benefit various stakeholders. At 15 cents per pound, irradiation can be 
conducted at a lower cost than fumigation of one to two pallets (20.3 
to 40.6 cents per pound) (table 4). Though larger quantities of 
sweetpotatoes, which fill more pallets, can be fumigated at lower per-
unit costs (6.7 to 13.5 cents per pound), irradiation eliminates the 
transport costs associated with fumigation for producers on the island 
of Hawaii. These transport costs include moving the crop from the 
island of Hawaii to Oahu (2 to 3 cents per pound) and trucking and 
handling costs of moving the crop between the harbor or airport and the 
fumigation site on Oahu ($34 per pallet, about 2.3 cents per pound). 
Irradiation also eliminates the cost of $368 per treatment attributable 
to APHIS monitoring of fumigation, which is currently conducted outside 
standard business hours, for all producers.
    Growers and shippers on the main island of Hawaii will benefit from 
lower transportation costs, since shipment of the crop from Hawaii to 
Oahu for fumigation will no longer be necessary. The availability of 
treatment at a more convenient location will also remove various 
logistical complications. This will reduce the total expense and time 
delay in moving the product and will enable sweetpotatoes to be treated 
and shipped at a lower cost than is currently possible with fumigation. 
The importance of alternative treatments is especially highlighted in 
view of the mandated global reductions in the use of methyl bromide 
under the Montreal Protocol. Irradiation also tends to affect quality 
less negatively than fumigation and may extend the shelf life of the 
tubers.
    The irradiation facility in Hawaii will benefit from having more 
crops available to treat. The treatment available at this facility has 
enabled many producers in Hawaii to move their products to the 
mainland, thus providing them with access to markets that were not 
previously available. For several years, the State of Hawaii has 
encouraged farmers to diversify agricultural production, given the 
significant decline in the production of sugarcane as a major crop. The 
approval of irradiation as a treatment for sweetpotatoes moved 
interstate from Hawaii will help to provide steady throughput for this 
facility. The facility currently treats seasonal crops whose volume is 
more variable than that of sweetpotatoes and is thus sometimes 
underutilized. A steady source of revenues from treatment, such as 
revenues from treating sweetpotatoes to be moved interstate, would help 
assure this facility's continued operation and availability for all the 
producers in Hawaii who can use it.
    U.S. mainland consumers will benefit by an increased supply of 
sweetpotatoes, and particularly the increased availability of the 
specialty purple sweetpotatoes Hawaii produces. Hawaiian sweetpotato 
production amounts to 1.8 million pounds, which comprises a small 
proportion of the total production of 1.36 billion pounds in the United 
States (tables 1, 2 and 3).
    Thus, as long as phytosanitary protection is maintained by treating 
sweetpotatoes from Hawaii prior to interstate movement, sweetpotato 
shipments from Hawaii are unlikely to affect mainland producers 
negatively, even if the availability of the irradiation treatment leads 
to further increases in the production of Hawaiian sweetpotatoes. 
Furthermore, the purple sweetpotatoes Hawaii produces are intended for 
niche markets in the mainland United States. However, to the extent 
that this interim rule makes moving sweetpotatoes from Hawaii 
interstate more convenient and less costly, the rule provides the 
Hawaiian sweetpotato industry with opportunities to expand the mainland 
markets for its specialty product.

Impact on Small Entities

    The Regulatory Flexibility Act requires that agencies specifically 
consider the economic impact of their regulations on small entities. 
The Small Business Administration (SBA) has established size criteria 
using the North American Industry Classification System (NAICS) to 
determine which economic entities meet the definition of a small firm.
    The irradiation facility in Hawaii is expected to be the primary 
facility to treat Hawaiian sweetpotatoes before they are moved 
interstate. However, the sweetpotatoes may also be sent to one of the 
three other facilities on the mainland United States. These include 
facilities in Libertyville and Morton Grove in Illinois, and a facility 
in Whippany, New Jersey. The facility in Hawaii can be classified under 
NAICS category 115114, ``Postharvest Crop Activities (except Cotton 
Ginning).'' According to the SBA's criteria, this facility is 
classified as a small entity, since its annual sales are less than $6 
million. A single firm owns the two facilities in Illinois and the 
facility in New Jersey. Its primary service is to provide irradiation 
treatment for the sanitation of medical devices on contract. This firm 
is classified under NAICS category 325612, ``Polish and Other 
Sanitation Good Manufacturing.'' However, since it is part of a larger 
corporation with 500 or more employees, that firm is not considered a 
small entity under the SBA's criteria.
    Sweet potato farming is classified under NAICS 111219, ``Other 
Vegetables (except Potato) and Melon Farming.'' According to the SBA's 
criteria, an entity involved in crop production is considered small if 
it has average annual receipts of less than $750,000. Since the 53 
sweetpotato farms in Hawaii accounted for sales of $900,000 in 2001, we 
believe it is safe to assume that all of these farms would be 
classified as small entities. We expect that the economic effects of 
this rule will be positive for those producers, to the extent that this 
rule makes moving sweetpotatoes from Hawaii interstate more convenient 
and less costly.
    As discussed above, new sweetpotato plantings in Hawaii have 
commenced since the interim rule became effective. Nevertheless, even 
if sweetpotato production increases in Hawaii, the relative volume of 
production (1.8 million pounds) remains minimal in comparison to the 
volume of U.S. mainland production (1.36 billion pounds). The purple-
fleshed Hawaiian sweetpotatoes furthermore are a specialty product 
intended for niche markets. Thus, as long as phytosanitary protection 
is maintained by treating sweetpotatoes from Hawaii prior to interstate 
movement, sweetpotato shipments from Hawaii are unlikely to affect 
mainland producers negatively.
    Under these circumstances, the Administrator of the Animal and 
Plant Health Inspection Service has determined that this action will 
not have a significant economic impact on a substantial number of small 
entities.

List of Subjects in 7 CFR Part 318

    Cotton, Cottonseeds, Fruits, Guam, Hawaii, Plant diseases and 
pests, Puerto Rico, Quarantine, Transportation, Vegetables, Virgin 
Islands.

PART 318--HAWAIIAN AND TERRITORIAL QUARANTINE NOTICES

0
Accordingly, we are adopting as a final rule, without change, the 
interim rule that amended 7 CFR part 318 and that was published at 68 
FR 37931-37936 on June 26, 2003.

    Authority: 7 U.S.C. 7701-7772; 7 CFR 2.22, 2.80, and 371.3.

    Done in Washington, DC, this 11th day of February, 2004.
Kevin Shea,
Acting Administrator, Animal and Plant Health Inspection Service.
[FR Doc. 04-3428 Filed 2-17-04; 8:45 am]
BILLING CODE 3410-34-P