[Federal Register Volume 70, Number 192 (Wednesday, October 5, 2005)]
[Notices]
[Pages 58179-58180]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-19999]


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 Notices
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 This section of the FEDERAL REGISTER contains documents other than rules 
 or proposed rules that are applicable to the public. Notices of hearings 
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  Federal Register / Vol. 70, No. 192 / Wednesday, October 5, 2005 / 
Notices  

[[Page 58179]]



DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation


Actions Taken To Ease Bulk Grain and Soybean Storage and 
Transportation Issues Exacerbated by Hurricane Katrina

AGENCY: Commodity Credit Corporation, USDA.

ACTION: Notice; Request for Proposals.

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SUMMARY: The Commodity Credit Corporation (CCC) is providing 
notification to all interested parties regarding additional actions 
announced on September 20, 2005, to reduce stress on the grain 
transportation system caused by Hurricane Katrina. The industry-focused 
actions include: (1) Assisting with the movement of barges of damaged 
corn from New Orleans; (2) providing incentives for alternative storage 
of grain; and (3) encouraging alternative shipping patterns to relieve 
pressure on the Mississippi River transportation system. CCC is seeking 
proposals from interested parties for: (1) barge movements of damaged 
corn from New Orleans; (2) alternative grain storage; and (3) offers to 
move grain through locations alternative to the Central Gulf.

DATES: Proposals should be submitted October 5, 2005 to be assured 
consideration.

ADDRESSES: CCC invites interested persons to submit proposals on this 
notice. Proposals may be submitted by any of the following methods:
     E-Mail: Send proposals to: [email protected].
     FAX: Send proposals to (816) 823-1805.
     Mail: Send proposals to: Contract Reconciliation Division, 
ATTN: Rick Mashek, P.O. Box 419205, Stop 8758, Kansas City, MO. 64133-
4676.
     Hand Delivery or Courier: Deliver proposals to the above 
address.

FOR FURTHER INFORMATION CONTACT: James Goff, Warehouse and Inventory 
Division, Farm Service Agency, United States Department of Agriculture, 
1400 Independence Avenue, SW., STOP 0553, Washington, DC 20250-0553, 
telephone (202) 720-5396, FAX (202) 690-3123, e-mail: 
[email protected]. Persons with disabilities who require 
alternative means for communication for regulatory information 
(Braille, large print, audiotape, etc.) should contact USDA's TARGET 
Center at (202) 720-2600 (voice and TDD).

SUPPLEMENTARY INFORMATION: On September 20, 2005, the Department of 
Agriculture (USDA) announced additional steps to reduce further stress 
on the grain transportation system caused by Hurricane Katrina. The 
industry-focused actions outlined in the press release include 
assisting with the movement of barges of damaged corn from New Orleans, 
providing incentives for alternative storage of grain, and encouraging 
alternative shipping patterns to relieve pressure on the Mississippi 
River transportation system. The goals of these actions are to create 
velocity and capacity in the transportation system and to take 
advantage of under-utilized handling facilities. CCC is seeking 
proposals from interested parties on each of these actions.
    The CCC Charter Act provides the authority for this action in 
sections 5(b) and (d). Section 5(b) makes available CCC materials and 
facilities required in connection with the production and marketing of 
agricultural commodities. Section 5(d) allows CCC to remove and dispose 
of, or aid in the removal and disposition of, surplus agricultural 
commodities.

I. Barge Movements of Damaged Corn

    CCC will enter into agreements with operators to assist in moving 
damaged corn from the New Orleans area for the purpose of freeing up 
barges. CCC has not and will not take title to the corn. The barges are 
to move corn to locations up river in order to accelerate barge 
availability to geographical areas under harvest pressure.
    CCC will consider proposals for up-river movements of damaged corn 
from New Orleans. Disposition of damaged corn must not have negative 
market impacts. This one-time offer of transportation assistance is 
only available to relocate barges and facilitate barge availability. 
Proposals must include the following information:
    (1) Number of barges that contain damaged corn;
    (2) Quantity of damaged corn to be moved;
    (3) Market value of the corn as of date proposal is submitted:
    (4) Current location;
    (5) Proposed location where barge will be discharged;
    (5) Proposed disposition and compensation received for the sale of 
the corn;
    (6) Dollar amount per ton of assistance requested; and
    (7) Whether the commodity loss or damage was covered by an 
insurance policy and, if so, the amount of indemnity received.
    Operators entering into agreements with CCC will be required to 
meet certain documentation and certification requirements. These 
requirements will allow CCC to verify the movement of the barges, the 
quantity of corn, the value of the corn and compensation received for 
the delivery of the corn.

II. Storage of Commodities in Alternative Facilities

    CCC will enter into agreements with operators to assist with the 
costs associated with storing corn and wheat in alternative storage 
facilities. The use of alternative storage is expected to facilitate 
producers' delivery of newly harvested commodities by producers. These 
alternative storage agreements are atypical, one-time storage 
arrangements. CCC is focused on providing a one-time storage incentive 
for proposals that contribute to easing harvest storage congestion and 
facilitate transportation in the Mississippi River transportation 
system. CCC may enter into agreements on up to 50 million bushels in 
aggregate of corn or wheat.
    CCC will consider proposals for a one-time incentive payment to 
store wheat or corn in alternative storage facilities. The storage 
proposal must meet the following basic criteria:
    (1) Storage facilities must be located on a tributary to the 
Mississippi River transportation system or no more than 100 miles from 
the river or its navigable tributaries;
    (2) The storage proposal must be for an alternative storage method 
not used

[[Page 58180]]

in that the same manner or quantity as in the past 12 months;
    (3) All grain to be stored in such an alternative facility must be 
company-owned; and
    (4) All grain to be stored in such an alternative facility must be 
accounted for through inventory records.
    Proposals must include the following information:
    (1) Location of the storage site;
    (2) Description of alternative storage facility;
    (3) Quantity of grain stored in the alternative storage facility in 
the past 12 months;
    (4) Quantity of corn or wheat to be stored in facility;
    (5) Information on the severity of storage congestion in the 
geographical area including any other facility within 10 miles of such 
site; and
    (6) Dollar amount per bushel of incentive payment requested.
    Operators entering into agreements with CCC will be required to 
meet certain documentation and certification requirements. These 
requirements will allow CCC to verify the quantity of corn or wheat 
stored in the alternative storage facility.

III. Transportation Differential

    CCC is seeking proposals on up to 200,000 metric tons (MT, 2204.623 
pounds) for a transportation differential incentive on the movement of 
corn, wheat or soybeans through regions other than the Central Gulf. 
This is designed to reduce transportation demand on the Mississippi 
River system and alleviate costs associated with these alternative 
transportation modes and handling locations. The movement of corn, 
wheat or soybeans subject to the differential must be completed by 
November 1, 2005. This incentive is intended to encourage new routes 
and is destination neutral.
    Re-direction of existing sales and new sales are eligible. There 
are no restrictions on flagging of ocean carriers or on the interested 
parties' domicile. Transshipments are allowed if the eligible commodity 
has been shipped from the customs territory of the U.S. via Great Lakes 
coastal range and its identity has been preserved until shipped from 
Canada. Proposed transshipment routes must be included in the proposal.
    Interested parties must demonstrate:
    (1) Financial ability to perform;
    (2) Performance history in the movement of bulk grains;
    (3) Access to handling facilities through ownership, contractual or 
put-through agreement, and
    (4) That they are not currently debarred, suspended or proposed for 
debarment from any Federally administered program.
    The proposal must include:
    (1) The commodity to be shipped;
    (2) Tonnage of the commodity (minimum 10,000 MT);
    (3) Final intended destination including transshipment routes if 
any;
    (4) Transportation mode;
    (5) Proposed rate of incentive per metric ton (MT) of the 
commodity;
    (6) Time-frame for completion; and
    (7) Explanation as to how the movement reduces transportation 
demand on the Mississippi River system.
    Interested parties may submit multiple proposals.

IV. Proposal Evaluation Criteria and Award

    Proposals must be evaluated objectively in accordance with the 
regulations on ``Competition in the awarding of discretionary grants 
and cooperative agreements'' found at 7 CFR 3015.158. The following 
criteria must be used equally in the evaluation:
    (1) Proposal's cost in relation to current market values for both 
commodities and transportation;
    (2) Net positive impact on transportation logjams; and
    (3) Overall cost effectiveness of proposal.
    CCC will notify interested parties of approval of their proposals 
on October 17, 2005.

    Signed at Washington, DC September 29, 2005.
Michael W. Yost,
Executive Vice-President, Commodity Credit Corporation.
[FR Doc. 05-19999 Filed 9-30-05; 3:02 pm]
BILLING CODE 3410-05-P