[Federal Register Volume 81, Number 15 (Monday, January 25, 2016)]
[Proposed Rules]
[Pages 3970-3976]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-01083]


 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
 
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 

  Federal Register / Vol. 81, No. 15 / Monday, January 25, 2016 / 
Proposed Rules  

[[Page 3970]]



DEPARTMENT OF AGRICULTURE

Grain Inspection, Packers and Stockyards Administration

7 CFR Part 800

RIN 0580-AB13


Reauthorization of the United States Grain Standards Act

AGENCY: Grain Inspection Packers and Stockyards Administration, USDA.

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: The Department of Agriculture (USDA) Grain Inspection, Packers 
and Stockyards Administration (GIPSA) is proposing to revise existing 
regulations and add new regulations under the United States Grain 
Standards Act (USGSA), as amended, in order to comply with amendments 
to the USGSA made by the Agriculture Reauthorizations Act of 2015. 
Specifically, this rulemaking proposes to eliminate mandatory barge 
weighing, remove the discretion for emergency waivers of inspection and 
weighing, revise GIPSA's fee structure, revise exceptions to official 
agency geographic boundaries, extend the length of licenses and 
designations, and impose new requirements for delegated States.

DATES: Comments must be received on or before February 24, 2016.

ADDRESSES: We invite you to submit comments on this rule. In your 
comments, please include the Regulation Identifier Number (RIN) and the 
volume, date, and page number of this issue of the Federal Register. 
You may submit comments by any of the following methods:
     Federal eRulemaking Portal: Go to http://www.regulations.gov and follow the online instructions for submitting 
comments.
     Mail, hand deliver, or courier to Dexter Thomas, GIPSA, 
USDA, 1400 Independence Avenue SW., Room 2526-S, Washington, DC 20250-
3642.
    Comments will be available online at www.regulations.gov. Comments 
may also be inspected at the mail address listed above between 8:00 
a.m. and 4:30 p.m., Monday through Friday, except federal holidays. A 
copy of this proposed rule is available through the GIPSA homepage at 
http://www.gipsa.usda.gov.

FOR FURTHER INFORMATION CONTACT: Barry Gomoll, 202-720-8286.
    Persons with disabilities who require alternative means for 
communication (Braille, large print, audio tape, etc.) should contact 
the USDA Target Center at (202) 720-2600 (voice and TDD).

SUPPLEMENTARY INFORMATION:

Overview

    On September 30, 2015, President Obama signed into law the 
Agriculture Reauthorizations Act of 2015, Public Law 114-54, (The 
Reauthorization Act). In addition to extending certain provisions of 
the USGSA (7 U.S.C. 71-87k) to 2020, the Reauthorization Act also made 
several changes to the existing law. Therefore, this proposed rule 
would amend 7 CFR part 800 to comply with the amendments made by the 
Reauthorization Act. Specifically, this proposed rule would:
     Remove the requirement to officially weigh inbound barge 
shipments at export port locations (Sec. Sec.  800.15 and 800.216);
     require GIPSA to approve all requests for waivers of 
official inspection and weighing requirements for export grain in 
``emergencies or other circumstances which would not impair the 
objectives of the [USGSA]'' (Sec.  800.18);
     base the portion of fees assessed on tonnage on the 5-year 
rolling average of export tonnage volume (Sec.  800.71);
     adjust fees annually to maintain a 3 to 6 month operating 
reserve for inspection and supervision services (Sec.  800.71);
     remove the provision that allows applicants to request 
service from an official agency outside an assigned geographic region 
after 90 days of nonuse of service (Sec.  800.117);
     waive the geographic boundaries established for official 
agencies between two adjacent official agencies if both official 
agencies agree in writing to the waiver. (Sec.  800.117);
     without changing current termination dates, terminate 
inspection licenses every 5 years instead of every 3 years (Sec.  
800.175);
     require delegated States to notify GIPSA of any intent to 
temporarily discontinue official inspection or weighing services at 
least 72 hours in advance, except in the case of a major disaster 
(Sec.  800.195);
     require delegated States to submit to a GIPSA review of 
their delegation by every 5 years in order to certify that they comply 
with the requirements for delegation under the USGSA (Sec.  800.195);
     require designated official agencies to respond to 
concerns identified during GIPSA's consultations with customers as part 
of the renewal of a designation (Sec.  800.196); and
     extend the minimum length of designation for official 
agencies from 3 years to 5 years (Sec.  800.196).

Fees

    GIPSA last made changes to its fee schedule on May 1, 2013 (78 FR 
22151-66). At that time, GIPSA determined that the existing fee 
schedule for inspection and weighing services would not generate enough 
revenue to adequately cover program costs through fiscal year 2017. To 
correct this problem and to build an operating reserve, GIPSA increased 
fees by 5 percent in fiscal year 2013 and an additional 2 percent for 
each successive year through fiscal year 2017.
    In addition, GIPSA restructured its tonnage fees to more accurately 
reflect the administrative and supervisory costs at the national and 
local level. In order to establish an equitable tonnage fee for all 
export tonnage utilizing the official system, GIPSA began assessing the 
national tonnage fee for all export grain inspected and/or weighed 
(excluding land carrier shipments to Canada and Mexico) by delegated 
States and designated agencies. GIPSA also shifted workers compensation 
costs from the national to the local level to fully reflect where those 
workers compensation costs originated.
    Before the Reauthorization Act, GIPSA used projected future tonnage 
volumes as a basis for tonnage fees. However, the Reauthorization Act 
amended the USGSA to require that tonnage fees be based on the five-
year rolling average of export tonnage volumes. In order to comply with 
this new tonnage fee requirement, under this proposed rule, GIPSA would 
adjust both the national and local tonnage fees on a yearly basis. 
Under this proposed rule,

[[Page 3971]]

the national tonnage fee would be the national program administrative 
costs (the costs of management and support of official inspection and 
weighing) for the previous fiscal year divided by the average export 
tonnage for the previous 5 fiscal years. Also, the local tonnage fees 
would be the Field Office administrative costs (the costs of 
management, support, and maintenance of each Field Office) for the 
previous fiscal year divided by the average tonnage serviced by that 
Field Office for the previous 5 fiscal years.
    The Reauthorization Act further requires adjustment of all of 
GIPSA's fees for the performance, supervision, and administration of 
official inspection and weighing services at least annually to maintain 
a 3 to 6 month operating reserve. Given that the number of requests for 
official inspection and weighing services varies with the amount of 
grain produced and exported, an operating reserve allows funding of 
operations in periods with lower than usual revenue. In order to 
maintain an operating reserve, this proposed rule would increase or 
decrease inspection and weighing fees when the operating reserve is 
less than 3 times or more than 6 times monthly operating expenses. For 
every $1 million that the operating reserve is below 3 months or above 
6 months of operating expenses, GIPSA would increase or decrease fees 
by 2 percent respectively. This proposed rule would also set a 5 
percent limit on changes to fees for service per calendar year. GIPSA's 
annual user fee revenue for performance, supervision, and 
administration of official inspection and weighing is approximately $40 
million. Therefore, an increase or decrease of 2 to 5 percent would 
approximately equal between $0.8 and $2 million annually.
    In addition to annual reviews of fees, GIPSA would continue to 
evaluate the financial status of the official inspection and weighing 
services to ensure that the revenue for each service covers the cost to 
GIPSA of providing that service. Also, GIPSA would continue to seek out 
cost saving measures and implement appropriate changes to reduce costs 
and minimize the need for fee increases.
    This action is authorized under the USGSA (7 U.S.C. 79(j)), which 
provides for the establishment and collection of fees that are 
reasonable and, as nearly as practicable, cover the costs of the 
services rendered, including associated administrative and supervisory 
costs. The tonnage fees cover the GIPSA administrative and supervisory 
costs for the performance of GIPSA's official inspection and weighing 
services; including personnel compensation and benefits, travel, rent, 
communications, utilities, contractual services, supplies, and 
equipment.

Exceptions to Geographic Boundaries

    The Reauthorization Act requires changes to GIPSA's exception 
program for official agencies to operate outside of their 
geographically assigned areas. Before the Reauthorization Act, the 
regulations provided for three types of exceptions: Timely service, 
nonuse of service for 90 consecutive days, and barge probe inspections. 
The Reauthorization Act amended the USGSA to eliminate the nonuse of 
service exception and add a provision for geographically adjacent 
agencies to provide service in each other's assigned geographic 
territories if they both agree in writing at the request of an 
applicant. This proposed rule would revise the current regulations to 
comply with the changes to the USGSA by the Reauthorization Act.
    GIPSA currently has 104 agreements for agencies operating outside 
of their assigned territory and GIPSA would continue to honor those 
agreements. Under this proposed rule, an agency would be permitted to 
provide service at a location in another adjacent agency's territory, 
provided that both agencies and the applicant for service submit an 
agreement in writing to GIPSA.

Delegations

    As required by the Reauthorization Act, this proposed rule would 
impose new requirements on State agencies that GIPSA delegates to 
perform export inspection and weighing services at export port 
locations under the USGSA. The Reauthorization Act requires the 
Secretary to certify that State agencies are meeting statutory 
requirements. Accordingly, every 5 years, a delegated State agency must 
submit to a review as to whether it meets the criteria for delegation 
set forth in the USGSA. This proposed rule would implement a process 
mirroring the existing process that GIPSA uses to renew the 
designations of official agencies. The Reauthorization Act also 
requires that a delegated State must notify GIPSA in writing of any 
intent to discontinue providing official service at least 72 hours 
before any discontinuation. This proposed rule would add this 
requirement to the section of the regulations concerning 
responsibilities of delegated States (7 CFR 800.195(f)).

Emergency Waivers

    The Reauthorization Act amended the USGSA to require GIPSA to waive 
the mandatory official inspection and weighing of export grain ``in 
emergency or other circumstances that would not impair the objectives 
of this Act whenever the parties to a contract for such shipment 
mutually agree to the waiver and documentation of such agreement is 
provided to the Secretary prior to shipment.'' To clarify what 
constitutes an emergency regarding this provision, this proposed rule 
would define the term ``emergency'' in the regulations.
    The final product of all official inspection and weighing services 
is the official certificate. This certificate is used to represent the 
grain shipment in trade and may be presented as prima facie evidence in 
court. Part of GIPSA's mission is to facilitate the marketing of 
cereals and oilseeds. The inability to issue a certificate does not 
achieve this mission. In the single historical instance that an 
emergency was declared, events outside of the control of the State and 
GIPSA prevented inspectors from safely inspecting grain and accordingly 
prevented prompt issuance of certificates. Therefore, this rule would 
define ``emergency'' to be a situation outside the control of GIPSA or 
a delegated State that prevents prompt issuance of certificates. This 
would allow grain shipments to continue in the event that the official 
system is not able to fully perform all of its duties.

Executive Orders 12866 and 13563 and the Regulatory Flexibility Act

    The Office of Management and Budget has designated this proposed 
rule as not significant under Executive Order 12866, ``Regulatory 
Planning and Review'' and Executive Order 13563, ``Improving Regulation 
and Regulation Review.'' Since grain export volume can vary 
significantly from year to year, estimating the impact in any future 
fee changes can be difficult. GIPSA recognizes the need to provide 
predictability to the industry for inspection and weighing fees. While 
not required by the Reauthorization Act, this proposed rule would limit 
the impact of a large annual change in fees by setting an annual cap of 
5 percent for increases or decreases in inspection and weighing fees. 
The statutory requirement to maintain an operating reserve between 3 
and 6 months of operating expenses ensures that GIPSA can adequately 
cover its costs without imposing an undue burden on its customers.
    Currently, GIPSA regularly reviews its user-fee financed programs 
to determine if the fees charged for performing official inspection and 
weighing services adequately cover the cost of providing those 
services. This policy remains unchanged in this proposed regulation. 
GIPSA will continue to seek

[[Page 3972]]

out cost saving measures and implement appropriate changes to reduce 
its costs to provide alternatives to fee increases.
    This proposed rule is unlikely to have an annual effect of $100 
million or adversely affect the economy. The changes to the regulation 
in this proposed rule are a direct response to Congressional action. 
Also, under the requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-12), GIPSA has considered the economic impact 
of this proposed rule on small entities. The purpose of the Regulatory 
Flexibility Act is to fit regulatory actions to the scale of businesses 
subject to such actions. This ensures that small businesses will not be 
unduly or disproportionately burdened. GIPSA is proposing this rule 
solely because the Reauthorization Act amended the USGSA, which 
requires that the regulations be updated to reflect the changes made to 
the USGSA by the Reauthorization Act.
    The Small Business Administration (SBA) defines small businesses by 
their North American Industry Classification System Codes (NAICS). This 
proposed rule would affect customers of GIPSA's official inspection and 
weighing services in the domestic and export grain markets (NAICS code 
115114). Fees for that program are in Schedules A (Tables 1-3) and B of 
Sec.  800.71 of GIPSA's regulations (7 CFR 800.71).
    Under the USGSA, all grain exported from the United States must be 
officially inspected and weighed. GIPSA provides mandatory inspection 
and weighing services at 45 export facilities in the United States and 
7 facilities for U.S. grain transshipped through Canadian ports. Five 
delegated State agencies provide mandatory inspection and weighing 
services at 13 facilities. All of these facilities are owned by multi-
national corporations, large cooperatives, or public entities that do 
not meet the requirements for small entities established by the SBA. 
Further, the provisions of this proposed rule would apply equally to 
all entities. The USGSA requires the registration of all persons 
engaged in the business of buying grain for sale in foreign commerce. 
In addition, those persons who handle, weigh, or transport grain for 
sale in foreign commerce must also register. The regulations found at 7 
CFR 800.30 define a foreign commerce grain business as persons who 
regularly engage in buying for sale, handling, weighing, or 
transporting grain totaling 15,000 metric tons or more during the 
preceding or current calendar year. Currently, there are 108 
registrants registered to export grain, most of which are not small 
businesses.
    Most users of the official inspection and weighing services do not 
meet the SBA requirements for small entities. Further, GIPSA is 
required by statute to make services available to all applicants and to 
recover the costs of providing such services as nearly as practicable, 
while maintaining a 3 to 6 month operating reserve. There would be no 
additional reporting, record keeping, or other compliance requirements 
imposed upon small entities as a result of this proposed rule. GIPSA 
has not identified any other federal rules which may duplicate, 
overlap, or conflict with this proposed rule. Because this proposed 
rule would not have a significant economic impact on a substantial 
number of small entities, an initial regulatory flexibility analysis is 
not provided.

Executive Order 12988

    This proposed rule has been reviewed under Executive Order 12988, 
``Civil Justice Reform.'' This proposed rule would not preempt State or 
local laws, regulations, or policies unless they represent an 
irreconcilable conflict with this proposed rule. This proposed rule 
would not have retroactive effect.

Executive Order 13132

    This proposed rule has been reviewed under Executive Order 13132, 
``Federalism.'' The policies in this proposed rule would not have any 
substantial direct effect on States, on the relationship between 
federal government and the States, or on the distribution of power and 
responsibilities among various levels of government, except as required 
by law. This proposed rule does not impose substantial direct 
compliance costs on State and local governments. Because States already 
retain records for their ordinary operations, the proposed Sec.  
800.195(g)(4) should not have a significant impact on State 
governments. Therefore, consultation with the States is not required.

Executive Order 13175

    This proposed rule has been reviewed under Executive Order 13175, 
``Consultation and Coordination with Indian Tribal Governments.'' To 
our knowledge, this rule would not have tribal implications that 
require tribal consultation under Executive Order 13175. If a Tribe 
requests consultation, GIPSA 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 Reauthorization Act.

Paperwork Reduction Act

    In compliance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the information collection and record keeping requirements 
included in this proposed rule has been approved by the OMB under 
control number 0580-0013, which expires on January 31, 2018.
    GIPSA is committed to complying with the Government Paperwork 
Elimination Act, which requires Government agencies in general to 
provide the public the option of submitting information or transacting 
business electronically to maximum extent possible.

E-Government Compliance

    GIPSA 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 800

    Administrative practice and procedure, Exports, Grains, Reporting 
and recordkeeping requirements.

    For the reasons set out in the preamble, GIPSA proposes to amend 7 
CFR part 800 as follows:

PART 800--GENERAL REGULATIONS

0
1. The authority citation for part 800 continues to read as follows:

    Authority:  7 U.S.C. 71-87k.


0
2. In Sec.  800.0, add in alphabetical order definitions for 
``Emergency'', ``Field Office administrative costs'', ``National 
program administrative costs'', ``Operating expenses'', and ``Operating 
reserve'' to read as follows:


Sec.  800.0  Meaning of terms.

* * * * *
    (b) * * *
    Emergency. A situation outside the control of the Service or a 
delegated State that prevents prompt issuance of certificates in 
accordance with Sec.  800.160(c).
* * * * *
    Field Office administrative costs. The costs of management, 
support, and maintenance of a Field Office, including, but not limited 
to, the management and administrative support personnel, rent, and 
utilities. This does not include any costs directly related to 
providing original or review inspection or weighing services.
* * * * *
    National program administrative costs. The costs of national 
management

[[Page 3973]]

and support of official grain inspection and/or weighing. This does not 
include the Field Office administrative costs and any costs directly 
related to providing service.
* * * * *
    Operating expenses. The total costs to the Service to provide 
official grain inspection and/or weighing services.
    Operating reserve. The amount of funds the Service has available to 
provide official grain inspection and/or weighing services.
* * * * *


Sec.  800.15  [Amended]

0
3. Amend Sec.  800.15 by removing paragraph (b)(2) and redesignating 
paragraphs (b)(3) and (b)(4) as (b)(2) and (b)(3), respectively.
0
4. Revise Sec.  800.18(b)(7) to read as follows:


Sec.  800.18  Waivers of the official inspection and Class X weighing 
requirements.

* * * * *
    (b) * * *
    (7) Emergency waiver. (i) Upon request, the requirements for 
official inspection or Class X weighing must be waived whenever the 
Service determines:
    (A) That an emergency exists that precludes official inspection or 
Class X weighing;
    (B) That granting an emergency waiver will not impair the 
objectives of the Act; and
    (C) The buyer and seller mutually agree to the waiver.
    (ii) To qualify for an emergency waiver, the exporter or elevator 
operator must submit a timely written request to the Service for the 
emergency waiver and also comply with all conditions that the Service 
may require.
* * * * *

0
5. Revise Sec.  800.71 to read as follows:


Sec.  800.71  Fees assessed by the Service.

    (a) Official inspection and weighing services. The fees shown in 
Schedule A apply to official inspection and weighing services performed 
by FGIS in the U.S. and Canada. The fees shown in Schedule B apply to 
official domestic inspection and weighing services performed by 
delegated States and designated agencies, including land carrier 
shipments to Canada and Mexico. The fees charged to delegated States by 
the Service are set forth in the State's Delegation of Authority 
document. Failure of a delegated State or designated agency to pay the 
appropriate fees to the Service within 30 days after becoming due will 
result in an automatic termination of the delegation or designation. 
The delegation or designation may be reinstated by the Service if fees 
that are due, plus interest and any further expenses incurred by the 
Service because of the termination, are paid within 60 days of the 
termination.
    (1) Schedule A--Fees for official inspection and weighing services 
performed in the United States and Canada, effective October 1, 2015. 
Canada fees include the noncontract hourly rate, the Toledo Field 
Office tonnage fee, and the actual cost of travel.

    Table 1 of Schedule A--Fees for Official Services Performed at an Applicant's Facility in an Onsite FGIS
                                                 Laboratory \1\
----------------------------------------------------------------------------------------------------------------
                                                                     Monday to
                                          Monday to  Friday  (6     Friday  (6       Saturday,
                                            a.m. to  6 p.m.)        p.m. to  6      Sunday, and      Holidays
                                                                       a.m.)       overtime \2\
----------------------------------------------------------------------------------------------------------------
(1) Inspection and Weighing Services
 Hourly Rates (per service
 representative):
    1-year contract ($ per hour)......  $40.20..................          $42.10          $48.20          $71.40
    Noncontract ($ per hour)..........  71.40...................           71.40           71.40           71.40
----------------------------------------------------------------------------------------------------------------
(2) Additional Tests (cost per test, assessed in addition to the hourly rate): \3\
    (i) Aflatoxin (rapid test kit method).......................................................           11.40
    (ii) Aflatoxin (rapid test kit method-applicant provides kit) \4\...........................            9.40
    (iii) All other Mycotoxins (rapid test kit method)..........................................           20.80
    (iv) All other Mycotoxins (rapid test kit method-applicant provides kit) \4\................           18.80
    (v) NIR or NMR Analysis (protein, oil, starch, etc.)........................................            2.70
    (vi) Waxy corn (per test)...................................................................            2.70
    (vii) Fees for other tests not listed above will be based on the lowest noncontract hourly
     rate
    (viii) Other services
        (a) Class Y Weighing (per carrier):
            (1) Truck/container.................................................................            0.70
            (2) Railcar.........................................................................            1.70
            (3) Barge...........................................................................            3.00
----------------------------------------------------------------------------------------------------------------
(3) Tonnage Fee (assessed in addition to all other applicable fees, only one tonnage fee will be  ..............
 assessed when inspection and weighing services are performed on the same carrier):
    (i) All outbound carriers serviced by the specific Field Office (per-metric ton):
        (a) League City.........................................................................           0.192
        (b) New Orleans.........................................................................           0.094
        (c) Portland............................................................................           0.191
        (d) Toledo..............................................................................           0.306
        (e) Delegated States \5\................................................................           0.061
        (f) Designated Agencies \5\.............................................................           0.061
----------------------------------------------------------------------------------------------------------------
\1\ Fees apply to original inspection and weighing, re-inspection, and appeal inspection service and include,
  but are not limited to, sampling, grading, weighing, prior to loading stowage examinations, and certifying
  results performed within 25 miles of an employee's assigned duty station. Travel and related expenses will be
  charged for service outside 25 miles as found in Sec.   800.72(a).
\2\ Overtime rates will be assessed for all hours in excess of 8 consecutive hours that result from an applicant
  scheduling or requesting service beyond 8 hours, or if requests for additional shifts exceed existing
  staffing.
\3\ Appeal and re-inspection services will be assessed the same fee as the original inspection service.
\4\ Applicant must provide the test kit, instrument hardware, calibration control, and all supplies required by
  the test kit manufacturer.
\5\ Tonnage fee is assessed on export grain inspected and/or weighed, excluding land carrier shipments to Canada
  and Mexico.


[[Page 3974]]


 Table 2 of Schedule A--Services Performed at Other Than an Applicant's
                   Facility in an FGIS Laboratory 1 2
------------------------------------------------------------------------
 
------------------------------------------------------------------------
(1) Original Inspection and Weighing (Class X)
 Services:
    (i) Sampling only (use hourly rates from Table 1
     of this section)................................
    (ii) Stationary lots (sampling, grade/factor, &
     checkloading):
        (a) Truck/trailer/container (per carrier)....             $22.50
        (b) Railcar (per carrier)....................              33.30
        (c) Barge (per carrier)......................             209.10
        (d) Sacked grain (per hour per service                      0.08
         representative plus an administrative fee
         per hundredweight) (CWT)....................
    (iii) Lots sampled online during loading
     (sampling charge under (1)(i) of this table,
     plus):..........................................
        (a) Truck/trailer container (per carrier)....              13.50
        (b) Railcar (per carrier)....................              28.10
        (c) Barge (per carrier)......................             143.00
        (d) Sacked grain (per hour per service                      0.08
         representative plus an administrative fee
         per hundredweight) (CWT)....................
    (iv) Other services:.............................
        (a) Submitted sample (per sample--grade and                13.50
         factor).....................................
        (b) Warehouseman inspection (per sample).....              23.60
        (c) Factor only (per factor--maximum 2                      6.60
         factors)....................................
        (d) Checkloading/condition examination (use                 0.08
         hourly rates from Table 1 of this section,
         plus an administrative fee per hundredweight
         if not previously assessed) (CWT)...........
        (e) Re-inspection (grade and factor only.                  14.60
         Sampling service additional, item (1)(i) of
         this table).................................
        (f) Class X Weighing (per hour per service                 71.40
         representative).............................
    (v) Additional tests (excludes sampling):........
        (a) Aflatoxin (rapid test kit method)........              33.60
        (b) Aflatoxin (rapid test kit method-                      31.60
         applicant provides kit) \3\.................
        (c) All other Mycotoxins (rapid test kit                   43.20
         method).....................................
        (d) All other Mycotoxins (rapid test kit                   41.20
         method-applicant provides kit) \3\..........
        (e) NIR or NMR Analysis (protein, oil,                     11.40
         starch, etc.)...............................
        (f) Waxy corn (per test).....................              11.40
        (g) Canola (per test-00 dip test)............              11.40
        (h) Pesticide Residue Testing: \4\...........
            (1) Routine Compounds (per sample).......             240.90
            (2) Special Compounds (Subject to                     128.40
             availability)...........................
        (i) Fees for other tests not listed above
         will be based on the lowest noncontract
         hourly rate from Table 1 of this section....
(2) Appeal inspection and review of weighing
 service.\5\
    (i) Board Appeals and Appeals (grade and factor).              91.50
        (a) Factor only (per factor--max 2 factors)..              48.20
        (b) Sampling service for Appeals additional
         (hourly rates from Table 1 of this section).
    (ii) Additional tests (assessed in addition to
     all other applicable tests):
        (a) Aflatoxin (rapid test kit method)........              33.60
        (b) Aflatoxin (rapid test kit method-                      31.60
         applicant provides kit) \3\.................
        (c) All other Mycotoxins (rapid test kit                   52.60
         method).....................................
        (d) All other Mycotoxins (rapid test kit                   50.60
         method-applicant provides kit) \3\..........
        (e) NIR or NMR Analysis (protein, oil,                     19.80
         starch, etc.)...............................
        (f) Sunflower oil (per test).................              19.80
        (g) Mycotoxin (per test-HPLC)................             157.30
        (h) Pesticide Residue Testing: \4\...........
            (1) Routine Compounds (per sample).......             240.90
            (2) Special Compounds (Subject to                     128.40
             availability)...........................
        (i) Fees for other tests not listed above
         will be based on the lowest noncontract
         hourly rate from Table 1 of this section....
    (iii) Review of weighing (per hour per service                 92.30
     representative).................................
(3) Stowage examination (service-on-request):\4\
    (i) Ship (per stowage space) (minimum $285.00 per              57.00
     ship)...........................................
    (ii) Subsequent ship examinations (same as                     57.00
     original) (minimum $171.00 per ship)............
    (iii) Barge (per examination)....................              45.80
    (iv) All other carriers (per examination)........              18.00
------------------------------------------------------------------------
\1\ Fees apply to original inspection and weighing, re-inspection, and
  appeal inspection service and include, but are not limited to,
  sampling, grading, weighing, prior to loading stowage examinations,
  and certifying results performed within 25 miles of an employee's
  assigned duty station. Travel and related expenses will be charged for
  service outside 25 miles as found in Sec.   800.72(a).
\2\ An additional charge will be assessed when the revenue from the
  services in Schedule A, Table 2, does not cover what would have been
  collected at the applicable hourly rate as provided in Sec.
  800.72(b).
\3\ Applicant must provide the test kit, instrument hardware,
  calibration control, and all supplies required by the test kit
  manufacturer.
\4\ If performed outside of normal business, 11/2 times the applicable
  unit fee will be charged.
\5\ If, at the request of the Service, a file sample is located and
  forwarded by the Agency, the Agency may, upon request, be reimbursed
  at the rate of $3.50 per sample by the Service.


            Table 3 of Schedule A--Miscellaneous Services \1\
------------------------------------------------------------------------
 
------------------------------------------------------------------------
(1) Grain grading seminars (per hour per  $71.40.
 service representative) \2\.
(2) Certification of diverter-type        71.40.
 mechanical samplers (per hour per
 service representative) \2\.
(3) Special weighing services (per hour   ..............................
 per service representative): \2\
    (i) Scale testing and certification.  92.90.
    (ii) Scale testing and certification  92.90.
     of railroad track scales.
    (iii) Evaluation of weighing and      92.90.
     material handling systems.

[[Page 3975]]

 
    (iv) NTEP Prototype evaluation        92.90.
     (other than Railroad Track Scales).
    (v) NTEP Prototype evaluation of      92.90.
     Railroad Track Scale.
    (vi) Use of GIPSA railroad track      557.30.
     scale test equipment per facility
     for each requested service. (Track
     scales tested under the Association
     of American Railroads agreement are
     exempt.).
    (vii) Mass standards calibration and  92.90.
     re-verification.
    (viii) Special projects.............  92.90.
(4) Foreign travel (hourly fee) \3\.....  92.90.
(5) Online customized data service:       ..............................
    (i) One data file per week for 1      557.30.
     year.
    (ii) One data file per month for 1    334.40.
     year.
(6) Samples provided to interested        3.50.
 parties (per sample).
(7) Divided-lot certificates (per         2.20.
 certificate).
(8) Extra copies of certificates (per     2.20.
 certificate).
(9) Faxing (per page)...................  2.20.
(10) Special mailing....................  Actual Cost.
(11) Preparing certificates onsite or
 during other than normal business hours
 (use hourly rates from Table 1 of this
 section).
------------------------------------------------------------------------
\1\ Any requested service that is not listed will be performed at $71.40
  per hour.
\2\ Regular business hours--Monday through Friday--service provided at
  other than regular business hours will be charged at 11/2 times the
  applicable hourly rate. (See the definition of ``business day'' in
  Sec.   800.0(b))
\3\ Foreign travel charged hourly fee of $92.90 plus travel, per diem,
  and related expenditures.

    (2) Schedule B--Fees for FGIS Supervision of Official Inspection 
and Weighing Services Performed by Delegated States and/or Designated 
Agencies in the United States. The supervision fee charged by the 
Service is $0.011 per metric ton of domestic U.S. grain shipments 
inspected and/or weighed, including land carrier shipments to Canada 
and Mexico.
    (b) Annual review of fees. For each calendar year, starting with 
2017, the Service will review the fees in Schedule A and publish fees 
effective January 1 of each year according to the following:
    (1) Tonnage fees. Tonnage fees will consist of the national tonnage 
fee and local tonnage fees and will be calculated and rounded to the 
nearest $0.001 per metric ton. All outbound grain officially inspected 
and/or weighed by the Field Offices in New Orleans, League City, 
Portland, and Toledo will be assessed the national tonnage fee plus the 
appropriate local tonnage fee. Export grain officially inspected and/or 
weighed by delegated States and official agencies, excluding land 
carrier shipments to Canada and Mexico, will be assessed the national 
tonnage fee only. The fees will be set according to the following:
    (i) National tonnage fee. The national tonnage fee is the national 
program administrative costs for the previous fiscal year divided by 
the average yearly tons of export grain officially inspected and/or 
weighed by delegated States and designated agencies, excluding land 
carrier shipments to Canada and Mexico, and outbound grain officially 
inspected and/or weighed by the Service during the previous 5 fiscal 
years.
    (ii) Local tonnage fee. The local tonnage fee is the Field Office 
administrative costs for the previous fiscal year divided by the 
average yearly tons of outbound grain officially inspected and/or 
weighed by the Field Office during the previous 5 fiscal years. The 
local tonnage fee is calculated individually for each Field Office.
    (2) Operating reserve. In order to maintain an operating reserve 
not less than 3 and not more than 6 months, the Service will review the 
value of the operating reserve at the end of each fiscal year and 
adjust fees according to the following:
    (i) Between 3 months and 6 months. If the operating reserve is 
greater than or equal to 3 times the monthly operating expenses and 
less than or equal to 6 times the monthly operating expenses, the 
Service will not make any fee adjustments other than provided for in 
paragraphs (b)(1) and (c) of this section.
    (ii) Less than 3 months. If the operating reserve is less than 3 
times the monthly operating expenses, the Service will increase all 
fees in Schedule A by 2 percent for each $1,000,000, rounded down, that 
the operating reserve is less than 3 times the monthly operating 
expense, with a maximum increase of 5 percent annually. Except for fees 
based on tonnage or hundredweight, all fees will be rounded to the 
nearest $0.10.
    (iii) Greater than 6 months. If the operating reserve is greater 
than 6 times the monthly operating expenses, the Service will decrease 
all fees in Schedule A by 2 percent for each $1,000,000, rounded down, 
that the operating reserve is greater than 6 times the monthly 
operating expense, with a maximum decrease of 5 percent annually. 
Except for fees based on tonnage or hundredweight, all fees will be 
rounded to the nearest $0.10.
    (c) Periodic review. The Service will periodically review and 
adjust all fees in Schedules A and B as necessary to ensure they 
reflect the true cost of providing and supervising official service. 
This process will incorporate any fee adjustments from paragraph (b) of 
this section.
    (d) Miscellaneous fees for other services--(1) Registration 
certificates and renewals. (i) The nature of your business will 
determine the fees that your business must pay for registration 
certificates and renewals:
    (A) If you operate a business that buys, handles, weighs, or 
transports grain for sale in foreign commerce, you must pay $135.00.
    (B) If you operate a business that buys, handles, weighs, or 
transports grain for sale in foreign commerce and you are also in a 
control relationship (see definition in section 17A(b)(2) of the Act) 
with respect to a business that buys, handles, weighs, or transports 
grain for sale in interstate commerce, you must pay $270.00.
    (ii) If you request extra copies of registration certificates, you 
must pay $2.20 for each copy.
    (2) Designation amendments. If you submit an application to amend a 
designation, you must pay $75.00.
    (3) Scale testing organization. If you submit an application to 
operate as a scale testing organization, you must pay $250.00.
0
7. Amend Sec.  800.117 by removing paragraph (b)(2), redesignating 
paragraph (b)(3) as (b)(2), and adding a new paragraph (b)(3) to read 
as follows:


Sec.  800.117  Who shall perform original services.

* * * * *
    (b) * * *
* * * * *
    (3) Written agreement. If the assigned official agency agrees in 
writing with the adjacent official agency to waive the

[[Page 3976]]

current geographic area restriction at the request of the applicant for 
service, the adjacent official agency may provide service at a 
particular location upon approval by the Service.
* * * * *
0
8. Revise paragraph (a) of Sec.  800.175 to read as follows:


Sec.  800.175  Termination of licenses.

    (a) Term of license. Each license shall terminate in accordance 
with the termination date shown on the license and as specified in 
paragraph (b) of this section. The termination date for a license shall 
be no less than 5 years or more than 6 years after the issuance date 
for the initial license; thereafter, every 5 years. Upon request of a 
licensee and for good cause shown, the termination date may be advanced 
or delayed by the Administrator for a period not to exceed 60 days.
* * * * *
0
9. Amend Sec.  800.195 by adding paragraphs (f)(11) and (g)(4) to read 
as follows:


Sec.  800.195  Delegations.

* * * * *
    (f) * * *
    (11) Notification to Secretary. A delegated State shall notify the 
Secretary of its intention to temporarily discontinue official 
inspection and/or weighing services for any reason, except in the case 
of a major disaster. The delegated State must provide written 
notification to the Service no less than 72 hours in advance of the 
discontinuation date.
* * * * *
    (g) * * *
    (4) Review. At least once every 5 years, a delegated State shall 
submit to a review of its delegation by the Service in accordance with 
the criteria and procedures for delegation prescribed in section 7(e) 
of the Act, this section of the regulations, and the instructions. The 
Administrator may revoke the delegation of a State according to this 
subsection if the State fails to meet or comply with any of the 
criteria for delegation set forth in the Act, regulations, and 
instructions.
* * * * *
0
10. Amend Sec.  800.196 by revising paragraphs (e)(2)(ii) and (iii), 
adding paragraph (e)(2)(iv), and revising paragraph (h)(1)(i) to read 
as follows:


Sec.  800.196  Designations.

* * * * *
    (e) * * *
    (2) * * *
    (ii) The applicant meets the conditions and criteria specified in 
the Act and regulations;
    (iii) The applicant is better able than any other applicant to 
provide official services; and
    (iv) The applicant addresses concerns identified during 
consultations that the Service conducts with applicants for service to 
the satisfaction of the Service.
* * * * *
    (h) Termination and renewal--(1) Every 5 years--(i) Termination. A 
designation shall terminate at a time specified by the Administrator, 
but not later than 5 years after the effective date of the designation. 
A notice of termination shall be issued by the Service to a designated 
agency at least 120 calendar days in advance of the termination date. 
The notice shall provide instructions for requesting renewal of the 
designation. Failure to receive a notice from the Service shall not 
exempt a designated agency from the responsibility of having its 
designation renewed on or before the specified termination date.
* * * * *
0
11. Amend Sec.  800.216 by revising paragraph (c) to read as follows:


Sec.  800.216  Activities that shall be monitored.

* * * * *
    (c) Grain handling activities. Grain handling activities subject to 
monitoring for compliance with the Act include, but are not limited to:
    (1) Shipping export grain without inspection or weighing;
    (2) Violating any Federal law with respect to the handling, 
weighing, or inspection of grain;
    (3) Deceptively loading, handling, weighing, or sampling grain; and
    (4) Exporting grain without a certificate of registration.
* * * * *

Larry Mitchell,
Administrator, Grain Inspection, Packers and Stockyards.
[FR Doc. 2016-01083 Filed 1-22-16; 8:45 am]
 BILLING CODE 3410-KD-P