[Federal Register Volume 79, Number 230 (Monday, December 1, 2014)]
[Rules and Regulations]
[Pages 70995-70997]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-28180]



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 Rules and Regulations
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  Federal Register / Vol. 79, No. 230 / Monday, December 1, 2014 / 
Rules and Regulations  

[[Page 70995]]



DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Part 1423

RIN 0560-AI18


Clarification of Bales Made Available for Shipment by CCC-
Approved Warehouses

AGENCY: Commodity Credit Corporation and Farm Service Agency, USDA.

ACTION: Final rule.

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SUMMARY: This rule amends the regulations that specify the requirements 
for the Commodity Credit Corporation (CCC)-approved warehouses storing 
cotton, which are administered by the Farm Service Agency (FSA). FSA is 
changing the definition of Bales Made Available for Shipment (BMAS). 
CCC-approved cotton warehouses are currently required to report BMAS, 
among other data, to FSA every week. FSA is clarifying that bales made 
available, but not picked up by the shipper, can only be reported by 
the warehouse operator as BMAS for no longer than the first 2 weeks 
that such bales have been made available for delivery but have not yet 
been picked up. This rule change includes whether bales not picked up 
are reported by the warehouse operator to FSA in the weekly report; it 
does not change any warehouse tariffs, late fees, or restocking fees. 
The quality of reported information about bales made available for 
shipment will improve, which will benefit both FSA and the cotton 
industry.

DATES: Effective Date: December 31, 2014.

FOR FURTHER INFORMATION CONTACT: Dan Schofer, telephone: (202) 720-
2121. 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: The Commodity Operations Division of FSA 
administers the CCC-approved warehouse program for CCC. This 
responsibility includes approving and licensing warehouses where 
commodities that are under various types of CCC loans may be stored. 
Those approved warehouses are required to comply with CCC regulations, 
which include reporting information about the stored commodities to 
FSA. The specific requirements that approved warehouses must meet are 
specified in the regulations in 7 CFR part 1423, ``Commodity Credit 
Corporation Approved Warehouses,'' and in the written storage 
agreements between CCC and the warehouse for each type of commodity.
    CCC-approved cotton warehouses are currently required to report 
BMAS, among other data, to FSA every week. This rule will clarify that 
bales made available, but not picked up may only be reported as BMAS 
for no longer than the first 2 weeks that such bales were made 
available for shipment. The rule only changes how bales not picked up 
are counted in the weekly report to CCC; it does not change any 
warehouse tariffs, late fees, or restocking fees.
    As specified in this rule, bales made available for shipment, but 
not picked up may not be reported as BMAS for longer than the first 2 
weeks that such bales were made available for shipment. There was no 
such time limit in the previous regulations or in the previous Cotton 
Storage Agreement (CSA) between FSA and approved warehouses. FSA is 
clarifying how BMAS is defined in the regulations in 7 CFR 1423.11 that 
apply to CCC-approved cotton warehouses; a conforming change will be 
made to Amendment 2 of CCC's CSA. CSA is the agreement between CCC and 
the warehouse on the requirements that the warehouse must meet for 
storing cotton that is under loan to CCC. The standard CSA form and the 
subsequent amendments are available on FSA's Web site at http://www.fsa.usda.gov/FSA/webapp?area=home&subject=coop&topic=was-ca.
    There is no expected cost to warehouses or CCC of reporting BMAS as 
specified in this rule. Since very few cotton warehouses currently list 
BMAS for longer than 2 weeks, this rule will not affect the majority of 
warehouse operators. The rule will only change how bales made available 
for shipment, but not picked up by the shipper are reported by the 
warehouse operator to CCC in the weekly report, it does not change 
warehouse tariffs or restocking fees.
    This change is intended to make the flow of cotton from U.S. 
producers and cotton warehouses to shippers, and ultimately to cotton 
merchants, more efficient based upon more accurately knowing and 
reporting what cotton is available for shipment. Availability and 
consistent supply of cotton are crucial for the U.S. cotton, and having 
accurate information about bales available for shipment contributes to 
an efficient supply of U.S. cotton.

Discussion of Comments

    In response to the proposed rule, eight comments were submitted by 
commenters during the 60-day comment period. Comments were submitted by 
cotton industry associations, association members, and an individual 
cotton warehouse. Seven of the eight comments support the proposed rule 
change. Most of the supportive comments expressed the feeling that the 
proposed rule change will strengthen USDA enforcement of the current 
shipping standard requirement of 4.5 percent of a warehouse's 
applicable storage capacity per week.
    One of the supportive comments offers a suggestion for an 
additional change. One commenter disagrees with the proposed rule 
change. The following provides a summary of public comments received on 
the proposed rule and FSA's responses.
    Comment: Only count a bale once in flow calculation--when the load 
is first assembled (broken out), rather than counting it again if 
unloaded and reloaded at a transit warehouse.
    Response: Warehouse operators report the number of bales shipped, 
made available for shipment, or not picked up in the weekly BMAS 
report. Warehouse operators are not required to list bales individually 
in the BMAS report, nor is the reporting format set up to handle that 
amount and type of data. There will be no change in response to the 
comment.
    Comment: Bales made available for delivery, but not picked up 
should stay a part of the BMAS total until shipment;

[[Page 70996]]

they should not be removed from the report after only 2 weeks.
    Response: The flow of cotton from warehouses will continue 
regardless of the amount of bales not picked up; the change in the 
definition and the resulting change in the reporting will not change 
that. Warehouses are still required to deliver, schedule, and have 
cotton bales ready for delivery without unnecessary delay. In order to 
be considered to have delivered cotton without unnecessary delay, the 
warehouse operator must make available for shipment at least 4.5 
percent of the applicable storage capacity in effect during the 
relevant week of shipment. Accurate BMAS data and cotton flow 
information contributes to the efficient supply of U.S. cotton. It 
could be detrimental to the cotton industry as whole if BMAS data gave 
the appearance that cotton is flowing at a steady, consistent rate, but 
in reality months of cotton bales not picked up remain in warehouses 
across the country. In order to improve the quality of reported 
information about bales made available for shipment, there will be no 
change in response to the comment.

Executive Order 12866 and 13563

    Executive Order 12866, ``Regulatory Planning and Review,'' and 
Executive Order 13563, ``Improving Regulation and Regulatory Review,'' 
direct agencies to assess all costs and benefits of available 
regulatory alternatives and, if regulation is necessary, to select 
regulatory approaches that maximize net benefits (including potential 
economic, environmental, public health and safety effects, distributive 
impacts, and equity). Executive Order 13563 emphasizes the importance 
of quantifying both costs and benefits, of reducing costs, of 
harmonizing rules, and of promoting flexibility.
    The Office of Management and Budget (OMB) designated this rule as 
not significant under Executive Order 12866 and, therefore, OMB has not 
reviewed this rule.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601-612), as amended by 
the Small Business Regulatory Enforcement Fairness Act of 1996 
(SBREFA), generally requires an agency to prepare a regulatory 
flexibility analysis of any rule whenever an agency is required by APA 
or any other law to publish a proposed rule, unless the agency 
certifies that the rule will not have a significant economic impact on 
a substantial number of small entities. FSA is certifying that this 
rule would not have a significant economic effect on a substantial 
number of small entities. New provisions in this rule would not impact 
a substantial number of small entities to a greater extent than large 
entities. Therefore, FSA certifies that this rule will not have a 
significant economic impact on a substantial number of small entities.

Environmental Review

    The environmental impacts of this rule have been considered in a 
manner consistent with the provisions of the National Environmental 
Policy Act (NEPA, 42 U.S.C. 4321-4347), the regulations of the Council 
on Environmental Quality (40 CFR parts 1500-1508), and FSA regulations 
for compliance with NEPA (7 CFR part 799). This rule would only change 
how bales not picked up are counted in the weekly report to CCC and 
does not change the structure or goals of the program and can be 
considered simply administrative in nature. Therefore, FSA has 
determined that NEPA does not apply to this proposed rule and no 
environmental assessment or environmental impact statement will be 
prepared.

Executive Order 12372

    Executive Order 12372, ``Intergovernmental Review of Federal 
Programs,'' requires consultation with State and local officials that 
would be directly affected by proposed federal financial assistance. 
The objectives of the Executive Order are to foster an 
intergovernmental partnership and a strengthened Federalism, by relying 
on State and local processes for State and local government 
coordination and review of proposed Federal Financial assistance and 
direct Federal development. For reasons set forth in the final rule 
related document regarding 7 CFR part 3015, subpart V (48 FR 29115, 
June 24, 1983), the programs and activities within this rule are 
excluded from the scope of Executive Order 12372.

Executive Order 12988

    This rule has been reviewed under Executive Order 12988, ``Civil 
Justice Reform.'' This rule will not preempt State or local laws, 
regulations, or policies unless they represent an irreconcilable 
conflict with this rule. This rule will not have retroactive effect. 
Before any judicial action may be brought regarding provisions of this 
proposed rule, the administrative appeal provisions of 7 CFR parts 11 
and 780 must be exhausted.

Executive Order 13132

    This rule has been reviewed under Executive Order 13132, 
``Federalism.'' The policies contained in this rule would not have any 
substantial direct effect on States, on the relationship between the 
Federal Government and the States, or on the distribution of power and 
responsibilities among the various levels of government, except as 
required by law. Nor does this rule impose substantial direct 
compliance costs on State and local governments. Therefore, 
consultation with the States is not required.

Executive Order 13175

    This rule has been reviewed in accordance with the requirements of 
Executive Order 13175, ``Consultation and Coordination with Indian 
Tribal Governments.'' Executive Order 13175 requires Federal agencies 
to consult and coordinate with tribes on a government-to-government 
basis on policies that have tribal implications, including regulations, 
legislative comments or proposed legislation, and other policy 
statements or actions that have substantial direct effects on one or 
more Indian tribes, on the relationship between the Federal Government 
and Indian tribes or on the distribution of power and responsibilities 
between the Federal Government and Indian tribes.
    FSA has assessed the impact of this rule on Indian tribes and 
determined that this rule does not, to our knowledge, have tribal 
implications that require tribal consultation under Executive Order 
13175. If a Tribe requests consultation, FSA will work with the USDA 
Office of Tribal Relations to ensure meaningful consultation is 
provided where changes, additions, and modifications identified in this 
rule are not expressly mandated by the 2014 Farm Bill.

Unfunded Mandates

    Title II of the Unfunded Mandate Reform Act of 1995 (UMRA, Pub. L. 
104-4) requires Federal agencies to assess the effects of their 
regulatory actions on State, local, and Tribal governments, or the 
private sector. Agencies generally must prepare a written statement, 
including a cost benefit analysis, for proposed and final rules with 
Federal mandates that may result in expenditures of $100 million or 
more in any 1 year for State, local, or Tribal governments, in the 
aggregate, or to the private sector. UMRA generally requires agencies 
to consider alternatives and adopt the more cost effective or least 
burdensome alternative that achieves the objectives of the rule.

[[Page 70997]]

This rule contains no Federal mandates as defined by Title II of UMRA 
for State, local, or Tribal governments, or the private sector. 
Therefore, this rule is not subject to the requirements of sections 202 
and 205 of UMRA.

SBREFA

    This rule is not a major rule under the SBREFA (Public Law 104-
121). Therefore, FSA is not required to delay the effective date for 60 
days from the date of publication to allow for Congressional review. 
Accordingly, this rule is effective 30 days after publication in the 
Federal Register.

Paperwork Reduction Act

    The cotton information covered in this rule is the weekly reporting 
of BMAS by cotton warehouses. BMAS is reported through the Electronic 
Warehouse Receipt (EWR) system, to which FSA has access. EWR is 
operated by a private company and generally contains information that 
is exempt from the Paperwork Reduction Act (44 U.S.C. Chapter 35) 
because it is usual and customary business information. The change in 
the regulation would not change the burden associated with reporting 
BMAS, which is required to be reported weekly. The only thing that 
would change is which bales are required to be included in the 
calculation of the total BMAS for that week. EWR is approved under OMB 
control number 0560-0120.

E-Government Act Compliance

    FSA is committed to complying with the E-Government Act, to promote 
the use of the Internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services and for other purposes.

List of Subjects in 7 CFR Part 1423

    Agricultural commodities, Honey, Oilseeds, Reporting and 
recordkeeping requirements, Surety bonds, Warehouses.

    For the reasons discussed above, 7 CFR part 1423 is amended as 
follows:

PART 1423--COMMODITY CREDIT CORPORATION APPROVED WAREHOUSES

0
1. The authority citation for part 1423 continues to read as follows:

    Authority:  15 U.S.C. 714b and 714c.


0
2. Revise Sec.  1423.11(b)(1)(ii) to read as follows:


Sec.  1423.11  Delivery and shipping standards for cotton warehouses.

* * * * *
    (b) * * *
    (1) * * *
    (ii) Were scheduled and ready for delivery in a previous week, but 
were not picked up by the shipper and remain available for immediate 
loading and another shipping date has not been established, or such 
bales are not subject to a restocking fee as provided in the warehouse 
operator's public tariff. Bales that have been available for delivery 
but not picked up may be counted as BMAS for no longer than the first 
two weeks that such bales have been made available for delivery but not 
yet picked up by the shipper.
* * * * *

    Dated: November 23, 2014.
Val Dolcini,
Administrator, Farm Service Agency, and Executive Vice President, 
Commodity Credit Corporation.
[FR Doc. 2014-28180 Filed 11-28-14; 8:45 am]
BILLING CODE 3410-05-P