[Federal Register Volume 69, Number 164 (Wednesday, August 25, 2004)]
[Rules and Regulations]
[Pages 52167-52169]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-19401]


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DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Part 1434

RIN 0560-AH17


Nonrecourse Marketing Assistance Loan and Loan Deficiency Payment 
Regulations for Honey

AGENCY: Commodity Credit Corporation, USDA.

ACTION: Interim final rule.

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SUMMARY: This interim final rule amends the regulations governing the 
Honey Nonrecourse Marketing Assistance Loan (MAL) and Loan Deficiency 
Payment (LDP) Programs of the Commodity Credit Corporation (CCC). This 
rule allows honey pledged as collateral for securing an MAL or to be 
eligible for an LDP to be stored in CCC-approved, five-gallon plastic 
storage containers, in addition to the plastic Intermediate Bulk 
Containers already allowed, metal containers, and steel containers. 
This rule is intended to increase the storage options for honey 
producers that participate in the MAL and LDP programs.

DATES: This rule is effective August 25, 2004. Comments on this rule 
must be

[[Page 52168]]

received on or before October 25, 2004 in order to be assured of 
consideration. Comments received after that date may be considered to 
the extent practicable.

ADDRESSES: The Farm Service Agency invites interested persons to submit 
comments on this interim final rule. Comments may be submitted by any 
of the following methods:
     E-Mail: Send comments to [email protected].
     Fax: Submit comments by facsimile transmission to (202) 
690-3307.
     Mail: Send comments to Grady Bilberry, Director, Price 
Support Division (PSD), Farm Service Agency, United States Department 
of Agriculture (USDA), STOP 0512, Room 4095-S, 1400 Independence 
Avenue, SW., Washington, DC 20250-0512.
     Hand Delivery or Courier: Deliver comments to the above 
address.
     Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the online instructions for submitting 
comments.
    Comments may be inspected in the Office of the Director, PSD, FSA, 
USDA, Room 4095-S, 1400 Independence Avenue, SW., Washington, DC, 
between 8 a.m. and 4:30 p.m., Monday through Friday, except holidays. A 
copy of this rule is available on the PSD home page at http://www.fsa.usda.gov/dafp/psd. All comments will become a matter of public 
record, including the name, mailing address, and e-mail address of the 
commenting party.

FOR FURTHER INFORMATION CONTACT: Kimberly Graham, (202) 720-9154, e-
mail: [email protected]. Persons with disabilities who 
require alternative means for communication (Braille, large print, 
audiotape, etc.) should contact the USDA Target Center at (202) 720-
2600 (voice and TDD).

SUPPLEMENTARY INFORMATION:

Background

    This rule allows honey stored in CCC-approved, 5-gallon plastic 
containers to be eligible for MAL's and LDP's. This change will make 
CCC regulations more consistent with marketing practices in the honey 
industry, especially regarding producers of relatively small quantities 
of honey. Most honey marketed in the U.S. is stored in metal drums or 
plastic storage units called Intermediate Bulk Containers (IBC's), and 
the majority of commercially exported and imported honey is stored in 
steel drums. However, producers of smaller quantities of honey, who 
normally market through local channels like farmer markets or local 
groceries, often store it in smaller plastic containers, which are 
significantly less expensive than metal drums or IBC's. Producers who 
use these smaller plastic containers are currently not eligible for 
honey MAL's and LDP's. CCC has determined that storing honey in 5-
gallon plastic containers is a normal marketing practice, and their use 
does not increase the risk to the honey loan collateral. Thus, this 
rule provides that honey stored in CCC-approved, 5-gallon plastic 
containers is eligible for MAL's and LDP's, and requests public comment 
on this change.

Notice and Comment

    Section 1601(c) of the Farm Security and Rural Investment Act of 
2002 (2002 Act) provides that the regulations needed to implement Title 
I of the 2002 Act, including those involved here, may be promulgated 
without regard to the notice and comment provisions of 5 U.S.C. 553 or 
the Statement of Policy of the Secretary of Agriculture effective July 
24, 1971, (36 FR 13804) relating to notices of proposed rulemaking and 
public participation in rulemaking. Because this rule involves 
technical storage and packaging requirements, it was determined to be 
in the public's interest to solicit comments on the rule. The rule is 
effective upon publication in order to benefit producers in 2004, and 
because the rule is consistent with commercial storage practices used, 
under limited circumstances, for years.

Executive Order 12866

    This rule is issued in conformance with Executive Order 12866, was 
determined to be not significant and has not been reviewed by the 
Office of Management Budget.

Regulatory Flexibility Act

    It has been determined that the Regulatory Flexibility Act is not 
applicable to this rule because the Farm Service Agency (FSA) is not 
required to publish a notice proposed rulemaking for the subject matter 
of this rule.

Environmental Assessment

    The environmental impacts of this rule have been considered in 
accordance with the provisions of the National Environmental Policy Act 
of 1969 (NEPA), 42 U.S.C. 4321 et seq., the regulations of the Council 
on Environmental Quality (40 CFR parts 1500-1508), and the FSA 
regulations for compliance with NEPA, 7 CFR part 799. FSA concluded 
that the rule requires no further environmental review because it is 
categorically excluded. No extraordinary circumstances or other 
unforeseeable factors exist which would require preparation of an 
environmental assessment or environmental impact statement.

Executive Order 12988

    This rule has been reviewed in accordance with Executive Order 
12988. This rule preempts State laws that are inconsistent with it. 
Before any legal action may be brought regarding a determination under 
this rule, the administrative appeal provisions set forth at 7 CFR 
parts 11 and 780 must be exhausted.

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).

Unfunded Mandates Reform Act of 1995

    The 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

    Section 1601(c) of the 2002 Act provides that the promulgation of 
regulations and the administration of Title I of the 2002 Act shall be 
made without regard to chapter 5 of title 44 of the United States Code 
(the Paperwork Reduction Act). Accordingly, these regulations and the 
forms and other information collection activities needed to administer 
the program authorized by these regulations are not subject to review 
by OMB under the Paperwork Reduction Act.

Executive Order 12612

    This rule does not have sufficient Federalism implications to 
warrant the preparation of a Federalism Assessment. 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.

Government Paperwork Elimination Act

    FSA is committed to compliance with the Government Paperwork 
Elimination Act (GPEA) and the Freedom to E-File Act, which require 
Government agencies in general and FSA in particular to provide the 
public the option of submitting information or transacting business 
electronically to

[[Page 52169]]

the maximum extent possible. The forms and other information collection 
activities required for participation in the program are available 
electronically for downloading or electronic submission through the 
USDA eForms Web site at http://forms.sc.egov.usda.gov/eforms.

Federal Assistance Programs

    The title and number of the Federal assistance program found in the 
Catalog of Federal Domestic Assistance to which this final rule applies 
are Commodity Loans and Loan Deficiency Payments, 10.051.

List of Subjects in 7 CFR Part 1434

    Honey, Loan programs-agriculture, Reporting and recordkeeping 
requirements.


0
For the reasons set out in the preamble, 7 CFR part 1434 is amended as 
follows:

PART 1434--NONRECOURSE MARKETING ASSISTANCE LOAN AND LDP 
REGULATIONS FOR HONEY

0
1. The authority citation for part 1434 continues to read as follows:

    Authority: 7 U.S.C. 7931.


0
2. Amend Sec.  1434.8 by revising paragraphs (a) and (b)(4) to read as 
follows:


Sec.  1434.8  Containers and drums.

    (a)(1) To be eligible for assistance under this part, honey must be 
packed in:
    (i) CCC-approved, 5-gallon plastic containers;
    (ii) 5-gallon metal containers;
    (iii) Steel drums with a capacity not less than 5 gallons nor 
greater than 70 gallons, or
    (iv) Plastic Intermediate Bulk Containers (IBC's).
    (2) Honey stored in plastic containers must be determined safe and 
secure from all possibility of contamination.
    (3) Honey storage containers used for these purposes must meet 
requirements of the Federal Food, Drug and Cosmetic Act, as amended and 
other specified requirements, as determined by CCC and must be 
generally fit for the purpose for which they are to be used.
    (4) CCC-approved 5-gallon plastic containers must hold 
approximately 60 pounds of honey. The containers must be free and clear 
of leakage and punctures and of suitable purity for food contact use 
and meet food storage standards as provided by CCC. Plastic containers 
must be new or previously used only to store honey. Plastic containers 
previously used to store chemicals, pesticides, or any other product or 
substance other than honey are ineligible for honey storage. The handle 
of each container must be firm and strong enough to permit carrying the 
filled container. The cover opening must not be damaged in any way that 
will prevent a tight seal. Containers that have been punctured and 
resealed will not be acceptable;
    (5) The 5-gallon metal containers must hold approximately 60 pounds 
of honey, and must be new, clean, sound, uncased, and free from 
appreciable dents and rusts. The handle of each container must be firm 
and strong enough to permit carrying the filled container. The cover 
and container opening must not be damaged in any way that will prevent 
a tight seal. Containers that are punctured or have been punctured and 
resealed by soldering will not be acceptable; and
    (6) The steel drums must be an open type and filled no closer than 
2 inches from the top of the drums. Drums must be new or must be used 
drums that have been reconditioned inside and outside. Drums must be 
clean, treated inside and outside to prevent rusting, fitted with 
gaskets that provide a tight seal and have an inside coating suitable 
for honey storage.
    (7) IBC's are bulk containers with a polyethylene inner bottle and 
a galvanized steel protective cage, a capacity of either 275 or 330 
gallons, and are reusable. IBC's must be clean, sound and provide a 
tight seal.
    (b) * * *
    (4) Containers that do not meet the specified requirements of 
paragraph (a) of this section or other CCC specifications or 
requirements.
* * * * *

    Signed in Washington, DC, on July 6, 2004.
James R. Little,
Executive Vice President, Commodity Credit Corporation.
[FR Doc. 04-19401 Filed 8-24-04; 8:45 am]
BILLING CODE 3410-05-P