[Federal Register Volume 80, Number 60 (Monday, March 30, 2015)]
[Rules and Regulations]
[Pages 16552-16553]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-07110]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 985

[Doc. No. AMS-FV-13-0087; FV14-985-1A FIR]


Marketing Order Regulating the Handling of Spearmint Oil Produced 
in the Far West; Revision of the Salable Quantity and Allotment 
Percentage for Class 1 (Scotch) Spearmint Oil for the 2014-2015 
Marketing Year

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Affirmation of interim rule as final rule.

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SUMMARY: The Department of Agriculture (USDA) is adopting as a final 
rule, without change, an interim rule recommended by the Spearmint Oil 
Administrative Committee (Committee) that revised the quantity of Class 
1 (Scotch) spearmint oil that handlers may purchase from or handle on 
behalf of, producers during the 2014-2015 marketing year under the Far 
West spearmint oil marketing order. The Committee locally administers 
the order and is comprised of producers and handlers of spearmint oil. 
The interim rule increased the Scotch spearmint oil salable quantity 
from 1,149,030 pounds to 1,984,423 pounds and the allotment percentage 
from 55 percent to 95 percent. This change is expected to help maintain 
orderly marketing conditions in the Far West spearmint oil market.

DATES: Effective March 30, 2015.

FOR FURTHER INFORMATION CONTACT: Barry Broadbent, Senior Marketing 
Specialist, or Gary Olson, Regional Director, Northwest Marketing Field 
Office, Marketing Order and Agreement Division, Fruit and Vegetable 
Program, AMS, USDA; Telephone: (503) 326-2724, Fax: (503) 326-7440, or 
Email: [email protected] or [email protected].
    Small businesses may obtain information on complying with this and 
other marketing order regulations by viewing a guide at the following 
Web site: http://www.ams.usda.gov/ MarketingOrdersSmallBusinessGuide; 
or by contacting Jeffrey Smutny, Marketing Order and Agreement 
Division, Fruit and Vegetable Program, AMS, USDA, 1400 Independence 
Avenue SW., STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-
2491, Fax: (202) 720-8938, or Email: [email protected].

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing Order 
No. 985 (7 CFR part 985), as amended, regulating the handling of 
spearmint oil produced in the Far West (Washington, Idaho, Oregon, and 
designated parts of Nevada and Utah), hereinafter referred to as the 
``order.'' The order is effective under the Agricultural Marketing 
Agreement Act of 1937, as amended (7 U.S.C. 601-674), hereinafter 
referred to as the ``Act.''
    The Department of Agriculture (USDA) is issuing this rule in 
conformance with Executive Orders 12866, 13563, and 13175.
    The handling of spearmint oil produced in the Far West is regulated 
by the order and is administered locally by the Committee. Under the 
authority of the order, salable quantities and allotment percentages 
were established for both Scotch and Native spearmint oil for the 2014-
2015 marketing year. However, early in the 2014-2015 marketing year, it 
became evident to the Committee and the industry that demand for Scotch 
spearmint oil was greater than previously projected and an intra-
seasonal increase in the salable quantity and allotment percentage for 
Scotch spearmint oil was necessary to adequately supply the increased 
demand. Therefore, this rule continues in effect the rule that 
increased the Scotch spearmint oil salable quantity from 1,149,030 
pounds to 1,984,423 pounds and the allotment percentage from 55 percent 
to 95 percent.
    In an interim rule published in the Federal Register on October 31, 
2014, and effective June 1, 2014, through May 31, 2015 (79 FR 64657, 
Doc. No. AMS-FV-13-0087, FV14-985-1A IR), Sec.  985.233 was amended to 
reflect the aforementioned increases in the salable quantity and 
allotment percentage for Scotch spearmint oil for the 2014-2015 
marketing year.

Final Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS) 
has considered the economic impact of this action on small entities. 
Accordingly, AMS has prepared this final regulatory flexibility 
analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Marketing orders issued 
pursuant to the Act, and the rules issued thereunder, are unique in 
that they are brought about through group action of essentially small 
entities acting on their own behalf.
    There are 8 spearmint oil handlers subject to regulation under the 
order, and approximately 39 producers of Scotch spearmint oil and 
approximately 91 producers of Native spearmint oil in the regulated 
production area. Small agricultural service firms are defined by the 
Small Business Administration (SBA) as those having annual receipts of 
less than $7,000,000, and small agricultural producers are defined as 
those having annual receipts of less than $750,000 (13 CFR 121.201).
    Based on the SBA's definition of small entities, the Committee 
estimates that only two of the eight handlers regulated by the order 
could be considered small entities. Most of the handlers are large 
corporations involved in the international trading of essential oils 
and the products of essential oils. In addition, the Committee 
estimates that 22 of the 39 Scotch spearmint oil producers and 29 of 
the 91 Native spearmint oil producers could be classified as small 
entities under the SBA definition. Thus, the majority of handlers and 
producers of Far West spearmint oil may not be classified as small 
entities.
    The use of volume control regulation allows the spearmint oil 
industry to fully supply spearmint oil markets while avoiding the 
negative consequences of over-supplying these markets. Without volume 
control regulation, the supply and price of spearmint oil would likely 
fluctuate widely. Periods of oversupply could result in low producer 
prices and a large volume of oil stored and carried over to future crop 
years. Periods of undersupply could lead to excessive price spikes and 
could drive end users to source their flavoring needs from other 
markets, potentially causing long-term economic damage to the domestic 
spearmint oil industry. The order's volume control provisions have been 
successfully implemented in the domestic spearmint oil industry since 
1980 and provide benefits for producers, handlers, manufacturers, and 
consumers.

[[Page 16553]]

    This rule increases the quantity of Scotch spearmint oil that 
handlers may purchase from or handle on behalf of producers during the 
2014-2015 marketing year, which ends on May 31, 2015. The 2014-2015 
Scotch spearmint oil salable quantity was initially established at 
1,149,030 pounds and the allotment percentage initially set at 55 
percent. This rule increases the Scotch spearmint oil salable quantity 
to 1,984,423 pounds and the allotment percentage to 95 percent.
    The Committee reached its decision to recommend an increase in the 
salable quantity and allotment percentage for Scotch spearmint oil 
after careful consideration of all available information. With the 
increase, the Committee believes that the industry will be able to 
satisfactorily meet the current market demand for this class of 
spearmint oil. This rule amends the salable quantities and allotment 
percentages previously established in Sec.  985.233. Authority for this 
action is provided in Sec. Sec.  985.50, 985.51, and 985.52 of the 
order.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the order's information collection requirements have been 
previously approved by the Office of Management and Budget (OMB) and 
assigned OMB No. 0581-0178, Vegetable and Specialty Crop Marketing 
Orders. No changes in those requirements as a result of this action are 
necessary. Should any changes become necessary, they would be submitted 
to OMB for approval.
    This rule will not impose any additional reporting or recordkeeping 
requirements on either small or large spearmint oil handlers. As with 
all Federal marketing order programs, reports and forms are 
periodically reviewed to reduce information requirements and 
duplication by industry and public sector agencies. In addition, USDA 
has not identified any relevant Federal rules that duplicate, overlap, 
or conflict with this rule.
    Further, the Committee's meeting was widely publicized throughout 
the spearmint oil industry and all interested persons were invited to 
attend the meeting and participate in Committee deliberations. Like all 
Committee meetings, the September 11, 2014, meeting was a public 
meeting and all entities, both large and small, were able to express 
their views on this issue.
    Comments on the interim rule were required to be received on or 
before December 30, 2014. No comments were received. Therefore, for the 
reasons given in the interim rule, we are adopting the interim rule as 
a final rule, without change.
    To view the interim rule, go to: http://www.regulations.gov/#!documentDetail;D=AMS-FV-13-0087-0003.
    This action also affirms information contained in the interim rule 
concerning Executive Orders 12866, 12988, 13175, and 13563; the 
Paperwork Reduction Act (44 U.S.C. Chapter 35); and the E-Gov Act (44 
U.S.C. 101).
    After consideration of all relevant material presented, it is found 
that finalizing the interim rule, without change, as published in the 
Federal Register (79 FR 64657, October 31, 2014) will tend to 
effectuate the declared policy of the Act.

List of Subjects in 7 CFR Part 985

    Marketing agreements, Oils and fats, Reporting and recordkeeping 
requirements, Spearmint oil.

    Accordingly, the interim rule that amended 7 CFR part 985 and that 
was published at 79 FR 64657 on October 31, 2014, is adopted as a final 
rule, without change.

    Dated: March 24, 2015.
Rex A. Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2015-07110 Filed 3-27-15; 8:45 am]
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