[Federal Register Volume 86, Number 188 (Friday, October 1, 2021)]
[Rules and Regulations]
[Pages 54339-54340]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-20380]



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 Rules and Regulations
                                                 Federal Register
 ________________________________________________________________________
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 This section of the FEDERAL REGISTER contains regulatory documents 
 having general applicability and legal effect, most of which are keyed 
 to and codified in the Code of Federal Regulations, which is published 
 under 50 titles pursuant to 44 U.S.C. 1510.
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  Federal Register / Vol. 86, No. 188 / Friday, October 1, 2021 / Rules 
and Regulations  

[[Page 54339]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 870

Commodity Credit Corporation

7 CFR Part 1427

[Doc. No. AMS-LRRS-21-0047]


Reorganization and Transfer of Regulations

AGENCY: Agricultural Marketing Service; Commodity Credit Corporation, 
USDA.

ACTION: Final rule.

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

SUMMARY: This rule transfers regulations pertaining to the Economic 
Adjustment Assistance for Textile Manufacturers program from the 
Commodity Credit Corporation (CCC) to the Agricultural Marketing 
Service (AMS) to reflect changes in the organizational structure and 
delegated authorities within the United States Department of 
Agriculture (USDA). This action is necessary to enable the AMS 
Administrator to issue, maintain, and revise as necessary regulations 
related to programs under the AMS Administrator's delegated authority.

DATES: Effective October 1, 2021.

FOR FURTHER INFORMATION CONTACT: Laurel May, Regulatory Analyst, 
Legislative and Regulatory Review Staff, Office of the Administrator, 
AMS, USDA; Telephone: (202) 384-2975, or Email: [email protected].

SUPPLEMENTARY INFORMATION: Congress directed the Secretary of 
Agriculture (Secretary) to provide economic adjustment assistance to 
domestic users of upland cotton under the Economic Adjustment 
Assistance to Users of Upland Cotton program in section 1207(c) of the 
Food, Conservation, and Energy Act of 2008 (Pub. L. 110-234; May 22, 
2008). Under the program domestic users of upland cotton may qualify 
for financial assistance that can be used to acquire, construct, 
install, modernize, develop, convert, or expand land, plant, buildings, 
equipment, facilities, or machinery. Payments for such assistance are 
issued by CCC. Section 1203(b) of the Agriculture Improvement Act of 
2018 (Pub. L. 115-334; December 20, 2018) renamed the program 
``Economic Assistance Adjustment to Textile Mills'' (EAATM). 
Regulations implementing the EAATM are found at 7 CFR part 1427, in 
subpart C, in Sec. Sec.  1427.100 to 1427.105.
    In a memorandum dated July 1, 2019,\1\ the Secretary redelegated 
authority to administer EAATM from the Farm Service Agency to the 
Agricultural Marketing Service (AMS). A final rule published October 
15, 2020 (85 FR 65500), amended 7 CFR part 2 to reflect the 
redelegation. Amended Sec.  2.79(a)(23) authorizes the AMS 
Administrator to administer the EAATM program (7 U.S.C. 9037(c)). The 
redelegation of authority necessitates the transfer of corresponding 
regulations to AMS, giving the AMS Administrator authority to issue, 
maintain, and revise the regulations pertaining to EAATM. This final 
rule completes the necessary transfer.
---------------------------------------------------------------------------

    \1\ Secretary's Memorandum 1076-030 (July 1, 2019), available at 
https://www.ocio.usda.gov/document/secretarys-memorandum-1076-030.
---------------------------------------------------------------------------

Overview of Changes

    Currently, Title 7, Chapter XIV, part 1427 of the Code of Federal 
Regulations (CFR) contains the EAATM regulations (in Sec. Sec.  
1427.100 to 1427.105), under CCC administration. This final rule 
removes the EAATM regulations from 7 CFR part 1427 and adds them in a 
new part 870--Economic Adjustment Assistance to Textile Mills--to 7 CFR 
chapter VIII, Subchapter B. Currently Subchapter B is titled 
``Regulations for Warehouses'' and contains part 869--Regulations for 
the United States Warehouse Act (USWA). This final rule revises the 
title for Subchapter B to read ``Fair Trade Practices'' to reflect the 
delegation of administrative authority for both USWA and EAATM 
activities to the AMS Administrator. The Deputy Administrator of AMS's 
Fair Trade Practices Program (FTPP) oversees USWA and EAATM activities 
for the Administrator. Finally, this rule makes a conforming change to 
the text of the EAATM regulations to reflect the program's revised 
name.

Classification

    This final rule is administrative in nature and reflects changes in 
USDA's organization. Accordingly, pursuant to 5 U.S.C. 553, notice of 
proposed rulemaking and opportunity for comment are not required, and 
this rule may be made effective in fewer than 30 days after publication 
in the Federal Register. Therefore, this final rule is effective upon 
publication.
    Additionally, this rule is exempt from the provisions of Executive 
Order 12866, as it is limited to agency management. This action is not 
a rule as defined by the Regulatory Flexibility Act, as amended by the 
Small Business Regulatory Enforcement Fairness Act of 1996, 5 U.S.C. 
801 et seq., and thus is exempt from the provisions of those Acts. This 
rule contains no information collection or recordkeeping requirements 
under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.).
    The Congressional Review Act (5 U.S.C. 801 et seq.) provides 
exemptions for rules ``of particular applicability;'' ``relating to 
agency management or personnel;'' or ``of agency organization, 
procedure, or practice that does not substantially affect the rights or 
obligations of non-agency parties.'' This action qualifies for this 
exemption.
    AMS 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.
    USDA has not identified any relevant Federal rules that duplicate, 
overlap, or conflict with this final rule.

List of Subjects

7 CFR Part 870

    Cotton, Payments, Reporting and recordkeeping, Textile mills.

7 CFR Part 1427

    Cotton, Cottonseeds, Loan programs-agriculture, Packaging and 
containers, Price support programs, Reporting and recordkeeping 
requirements, Surety bonds, Warehouses.

    For the reasons stated in the preamble, as authorized by the 
Secretary's Memorandum implementing the Agriculture Improvement Act of 
2018, dated July 1, 2019, the

[[Page 54340]]

Department of Agriculture amends 7 CFR chapters VIII and XIV as 
follows:

TITLE 7--AGRICULTURE

CHAPTER VIII--AGRICULTURAL MARKETING SERVICE (FEDERAL GRAIN 
INSPECTION SERVICE, FAIR TRADE PRACTICES PROGRAM), DEPARTMENT OF 
AGRICULTURE

Subchapter B--Fair Trade Practices

0
1. Under the authority of 7 CFR 2.22(a)(1), revise the heading of 
subchapter B to read as set forth above.

0
2. Add part 870 to read as follows:

PART 870--ECONOMIC ASSISTANCE ADJUSTMENT FOR TEXTILE MILLS

Sec.
870.1 Applicability.
870.3 Eligible upland cotton.
870.5 Eligible domestic users.
870.7 Upland cotton Domestic User Agreement.
870.9 Payment.

    Authority: 7 U.S.C. 9037(c).


Sec.  870.1  Applicability.

    (a) These regulations specify the terms and conditions under which 
the Commodity Credit Corporation (CCC) will make payments to eligible 
domestic users who have entered into an Upland Cotton Domestic User 
Agreement with CCC to participate in the upland cotton domestic user 
program.
    (b) CCC will specify the forms to be used in administering the 
Economic Adjustment Assistance for Textile Mills program.


Sec.  870.3  Eligible upland cotton.

    (a) For purposes of this subpart, eligible upland cotton is baled 
upland cotton, regardless of origin, that is opened by an eligible 
domestic user, and is either:
    (1) Baled lint, including baled lint classified by USDA's 
Agricultural Marketing Service as Below Grade;
    (2) Loose samples removed from upland cotton bales for 
classification purposes that have been rebaled;
    (3) Semi-processed motes that are of a quality suitable, without 
further processing, for spinning, papermaking, or production of non-
woven fabric; or
    (4) Re-ginned (processed) motes.
    (b) Eligible upland cotton must not be:
    (1) Cotton for which a payment, under the provisions of this 
subpart, has been made available;
    (2) Raw (unprocessed) motes, pills, linters, or other derivatives 
of the lint cleaning process; or
    (3) Textile mill wastes.


Sec.  870.5  Eligible domestic users.

    (a) For purposes of this subpart, a person regularly engaged in the 
business of opening bales of eligible upland cotton for the purpose of 
spinning, papermaking, or processing of non-woven cotton fabric in the 
United States, who has entered into an agreement with CCC to 
participate in the upland cotton user program, will be considered an 
eligible domestic user.
    (b) Applications for payment under this subpart must contain 
documentation required by the provisions of the Upland Cotton Domestic 
User Agreement and other instructions that CCC issues.


Sec.  870.7  Upland cotton Domestic User Agreement.

    (a) Payments specified in this subpart will be made available to 
eligible domestic users who have entered into an Upland Cotton Domestic 
User Agreement with CCC and who have complied with the terms and 
conditions in this subpart, the Upland Cotton Domestic User Agreement, 
and instructions issued by CCC.
    (b) Upland Cotton Domestic User Agreements may be obtained from the 
Warehouse and Commodity Management Division, P.O. Box 419205, Stop 
9148, Kansas City, MO 64141-6205. In order to participate in the 
program authorized by this subpart, domestic users must execute the 
Upland Cotton Domestic User Agreement and forward the original and one 
copy to KCCO.


Sec.  870.9  Payment.

    (a) The payment rate for purposes of calculating payments as 
specified in this subpart is 3 cents per pound.
    (b) Payments specified in this subpart will be determined by 
multiplying the payment rate, of 3 cents per pound, by
    (1) In the case of baled upland cotton, whether lint, loose samples 
or reginned motes, but not semi-processed motes, the net weight of the 
cotton used (gross weight minus the weight of bagging and ties);
    (2) In the case of unbaled reginned motes consumed, without 
rebaling, for an end use in a continuous manufacturing process, the 
weight of the reginned motes after final cleaning; and
    (3) In the case of semi-processed motes which are of a quality 
suitable, without further processing, for spinning, papermaking, or 
manufacture of non-woven cotton fabric, 25 percent of the weight (gross 
weight minus the weight of bagging and ties, if baled) of the semi-
processed motes; provided further, that with respect to semi-processed 
motes that are used prior to August 18, 2010, payment may be allowed by 
CCC in its sole discretion at 100 percent of the weight as determined 
appropriate for a transition of the program to the 25 percent factor.
    (c) In all cases, the payment will be determined based on the 
amount of eligible upland cotton that an eligible domestic user 
consumed during the immediately preceding calendar month. For the 
purposes of this subpart, eligible upland cotton will be considered 
consumed by the domestic user on the date the bale is opened for 
consumption, or if not baled, the date consumed, without further 
processing, in a continuous manufacturing process.
    (d) Payments specified in this subpart will be made available upon 
application for payment and submission of supporting documentation, as 
required by the CCC-issued provisions of the Upland Cotton Domestic 
User Agreement.
    (e) All payments received by the eligible domestic user of upland 
cotton must be used for purposes specified in 7 U.S.C. 9037(c)(3), 
which include but are not limited to, acquisition, construction, 
installation, modernization, development, conversion, or expansion of 
land, plant, buildings, equipment, facilities, or machinery. Such 
capital expenditures must be directly attributable and certified as 
such by the user for the purpose of manufacturing upland cotton into 
eligible cotton products in the United States.

CHAPTER XIV--COMMODITY CREDIT CORPORATION, DEPARTMENT OF 
AGRICULTURE

PART 1427--COTTON

0
3. The authority citation for part 1427 continues to read as follows:

    Authority:  7 U.S.C. 7231-7237, 7931-7936, 9011, and 9031-40, 15 
U.S.C. 714b and c.

Subpart C--[Removed and Reserved]

0
4. Remove and reserve subpart C, consisting of Sec. Sec.  1427.100 
through 1427.105.

Mae Wu,
Deputy Under Secretary, Marketing and Regulatory Programs.
[FR Doc. 2021-20380 Filed 9-30-21; 8:45 am]
BILLING CODE 3410-05-P