[Federal Register Volume 86, Number 247 (Wednesday, December 29, 2021)]
[Notices]
[Pages 74063-74065]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-28300]


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Notices
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains documents other than rules 
or proposed rules that are applicable to the public. Notices of hearings 
and investigations, committee meetings, agency decisions and rulings, 
delegations of authority, filing of petitions and applications and agency 
statements of organization and functions are examples of documents 
appearing in this section.

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Federal Register / Vol. 86, No. 247 / Wednesday, December 29, 2021 / 
Notices

[[Page 74063]]



DEPARTMENT OF AGRICULTURE

Food Safety and Inspection Service

[Docket Number FSIS-2021-0029]


2022 Rate Changes for the Basetime, Overtime, Holiday, Laboratory 
Services, and Export Application Fees

AGENCY: Food Safety and Inspection Service, USDA.

ACTION: Notice.

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

SUMMMARY: The Food Safety and Inspection Service (FSIS) is announcing 
the 2022 rates it will charge meat and poultry establishments, egg 
products plants, and importers and exporters for providing voluntary, 
overtime, and holiday inspection and identification, certification, and 
laboratory services. Additionally, FSIS is announcing that there will 
be no changes to the fee FSIS assesses to exporters that choose to 
apply for export certificates electronically through the export 
component of the Agency's Public Health Information System.
    The new rates will be applied on January 2, 2022.

DATES: FSIS will charge the rates announced in this notice beginning 
January 2, 2022.

FOR FURTHER INFORMATION CONTACT: For further information contact 
Michael Toner, Director, Budget Division, Office of the Chief Financial 
Officer, FSIS, U.S. Department of Agriculture, Room 2159, South 
Building, 1400 Independence Avenue SW, Washington, DC 20250-3700; 
Telephone: (202) 690-8398, Fax: (202) 690-4155.

SUPPLEMENTARY INFORMATION:

Background

    On April 12, 2011, FSIS published a final rule amending its 
regulations to establish formulas for calculating the rates it charges 
meat and poultry establishments, egg products plants, and importers and 
exporters for providing voluntary, overtime, and holiday inspection and 
identification, certification, and laboratory services (76 FR 20220).
    In the final rule, FSIS stated that it would use the formulas to 
calculate the annual rates, publish the rates in Federal Register 
notices prior to the start of each calendar year, and apply the rates 
on the first FSIS pay period at the beginning of the calendar year. 
This notice provides the 2022 rates, which will be applied starting on 
January 2, 2022.
    On September 6, 2017, FSIS published a Federal Register notice, 
``Public Health Information System (PHIS) Export Component Country 
Implementation'' (FR 82 42056). The notice announced the delayed 
implementation of the export component to ensure sufficient testing and 
outreach to stakeholders and that the application fee would be 
recalculated based on available costs and number of applications, but 
would not be assessed prior to January 1, 2019. In addition, FSIS 
announced that it would implement the PHIS Export Component with a 
limited number of countries and gradually expand implementation to 
additional countries.
    On April 29, 2019, FSIS published a Federal Register notice, 
``Public Health Information System Export Component Fee'' (84 FR 
17999). The notice announced that starting June 1, 2019, FSIS would 
assess a fee of $4.01 to exporters that chose to apply for export 
certificates electronically through the export component of PHIS. As 
noted below, that fee remains unchanged since 2019.
    On July 15, 2021, FSIS published a Federal Register notice, 
``Overtime and Holiday Inspection Fee Reductions for Small and Very 
Small Establishments'' (86 FR 37276). The noticed explained that the 
American Rescue Plan Act provided FSIS with $100 million in budget 
authority to reduce the costs of overtime inspection for small and very 
small official meat and poultry establishments and egg products plants. 
The notice also announced that FSIS implemented this provision by 
reducing overtime and holiday inspection fees for small establishments 
by 30 percent and very small establishments by 75 percent. More 
information on how to apply for the fee reduction is available at: 
https://www.fsis.usda.gov/policy/federal-register-rulemaking/federal-register-notices/overtime-and-holiday-inspection-fee.

2022 Rates and Calculations

    The following table lists the 2022 Rates per hour, per employee, by 
type of service:

------------------------------------------------------------------------
                                                             2022 Rate
                                                            (estimates
                                                            rounded to
                         Service                              reflect
                                                             billable
                                                             quarters)
------------------------------------------------------------------------
Basetime................................................          $67.00
Overtime................................................            2.60
Holiday.................................................           98.20
Laboratory..............................................           85.72
Export Application......................................          * 4.01
------------------------------------------------------------------------
* Per application.

    The regulations that cover these fees (other than the export 
application fee) state that FSIS will calculate the rates using 
formulas that include the Office of Field Operations (OFO) inspection 
program personnel's previous fiscal year's regular direct pay and 
regular hours (9 CFR 391.2, 391.3, 391.4, 590.126, 590.128, 592.510, 
592.520, and 592.530).
    FSIS determined the 2022 rates using the following calculations:
    Basetime Rate = The quotient of dividing the Office of Field 
Operations (OFO) inspection program personnel's previous fiscal year's 
regular direct pay by the previous fiscal year's regular hours, plus 
the quotient multiplied by the calendar year's percentage of cost of 
living increase, plus the benefits rate, plus the travel and operating 
rate, plus the overhead rate, plus the allowance for bad debt rate.
    The calculation for the 2022 basetime rate per hour per program 
employee is:

[FY 2021 OFO Regular Direct Pay divided by the previous fiscal year's 
Regular Hours ($456,808,446/15,032,156)] = $30.39 + ($30.39 * 2.7% 
(calendar year 2021 Cost of Living Increase)) = $31.21 + $11.86 
(benefits rate) + $2.48 (travel and operating rate) + $21.45(overhead 
rate) + $0.00 (bad debt allowance rate) = $67.00, which is divisible by 
4.

    Overtime Rate = The quotient of dividing the Office of Field 
Operations (OFO) inspection program personnel's previous fiscal year's 
regular direct pay by the previous fiscal year's regular

[[Page 74064]]

hours, plus that quotient multiplied by the calendar year's percentage 
of cost of living increase, multiplied by 1.5 (for overtime), plus the 
benefits rate, plus the travel and operating rate, plus the overhead 
rate, plus the allowance for bad debt rate.
    The calculation for the 2022 overtime rate per hour per program 
employee is:

[FY 2021 OFO Regular Direct Pay divided by previous fiscal year's 
Regular Hours ($456,808,446/15,032,156)] = $30.39 + ($30.39 * 2.7% 
(calendar year 2021 Cost of Living Increase)) = $31.21 * 1.5 = $46.82 + 
$11.86 (benefits rate) + $2.48 (travel and operating rate) + $21.45 
(overhead rate) + $0.00 (bad debt allowance rate) = $82.61, rounded 
down to $82.60, so that it is divisible by 4.

    Holiday Rate = The quotient of dividing the Office of Field 
Operations (OFO) inspection program personnel's previous fiscal year's 
regular direct pay by the previous fiscal year's regular hours, plus 
that quotient multiplied by the calendar year's percentage of cost of 
living increase, multiplied by 2 (for holiday pay), plus the benefits 
rate, plus the travel and operating rate, plus the overhead rate, plus 
the allowance for bad debt rate.
    The calculation for the 2022 holiday rate per hour per program 
employee calculation is:

[FY 2021 OFO Regular Direct Pay divided by Regular Hours ($456,808,446/
15,032,156)] = $30.39 + ($30.39 * 2.7% (calendar year 2021 Cost of 
Living Increase)) = $31.21* 2 = $62.42 + $11.86 (benefits rate) + $2.48 
(travel and operating rate) + $21.45 (overhead rate) + $0.00 (bad debt 
allowance rate) = $98.21, rounded down to 98.20, so that it is 
divisible by 4.

    Laboratory Services Rate = The quotient of dividing the Office of 
Public Health Science (OPHS) previous fiscal year's regular direct pay 
by the OPHS previous fiscal year's regular hours, plus the quotient 
multiplied by the calendar year's percentage cost of living increase, 
plus the benefits rate, plus the travel and operating rate, plus the 
overhead rate, plus the allowance for bad debt rate.
    The calculation for the 2022 laboratory services rate per hour per 
program employee is:

[FY 2021 OPHS Regular Direct Pay/OPHS Regular hours ($25,641,975/
527,590)] = $48.60 + ($48.60 * 2.7% (calendar year 2021 Cost of Living 
Increase)) = $49.91 + $11.86 (benefits rate) + $2.48 (travel and 
operating rate) + $21.45 (overhead rate) + $0.00 (bad debt allowance 
rate) = $85.71, rounded up to 85.72, so that it is divisible by 4.

Calculations for the Benefits, Travel and Operating, Overhead, and 
Allowance for Bad Debt Rates

    These rates are components of the basetime, overtime, holiday, and 
laboratory services rates formulas.
    Benefits Rate: The quotient of dividing the previous fiscal year's 
direct benefits costs by the previous fiscal year's total hours 
(regular, overtime, and holiday), plus that quotient multiplied by the 
calendar year's percentage cost of living increase. Some examples of 
direct benefits are health insurance, retirement, life insurance, and 
Thrift Savings Plan basic and matching contributions.
    The calculation for the 2022 benefits rate per hour per program 
employee is:

[FY 2021 Direct Benefits/(Total Regular hours + Total Overtime hours + 
Total Holiday hours) ($214,717,112/18,590,355)] = $11.55 + ($11.55 * 
2.7% (calendar year 2021 Cost of Living Increase)) = $11.86.

    Travel and Operating Rate: The quotient of dividing the previous 
fiscal year's total direct travel and operating costs by the previous 
fiscal year's total hours (regular, overtime, and holiday), plus that 
quotient multiplied by the calendar year's percentage of inflation.
    The calculation for the 2022 travel and operating rate per hour per 
program employee is:

[FY 2021 Total Direct Travel and Operating Costs/(Total Regular hours + 
Total Overtime hours + Total Holiday hours) ($45,098,829/18,590,355)] = 
$2.43 + ($2.43 * 2.1% (2022 Inflation) = $2.48.

    Overhead Rate: The quotient of dividing the previous fiscal year's 
indirect costs plus the previous fiscal year's information technology 
(IT) costs in the Public Health Data Communication Infrastructure 
System Fund plus the provision for the operating balance less any 
Greenbook costs (i.e., costs of USDA support services prorated to the 
service component for which fees are charged) that are not related to 
food inspection by the previous fiscal year's total hours (regular, 
overtime, and holiday) worked across all funds, plus the quotient 
multiplied by the calendar year's percentage of inflation.
    The calculation for the 2022 overhead rate per hour per program 
employee is:

[FY 2021 Total Overhead/(Total Regular hours + Total Overtime hours + 
Total Holiday hours) ($ 390,615,397/18,590,355)] = $21.01 + ($21.01 * 
2.1% (2021 Inflation) = $21.45.

    Allowance for Bad Debt Rate = Previous fiscal year's total 
allowance for bad debt (for example, debt owed that is not paid in full 
by plants and establishments that declare bankruptcy) divided by 
previous fiscal year's total hours (regular, overtime, and holiday) 
worked.
    The 2022 calculation for bad debt rate per hour per program 
employee is:

[FY 2021 Total Bad Debt/(Total Regular hours + Total Overtime hours + 
Total Holiday hours) = ($249,286/18,590,355)] = $0.01.

2022 Electronic Export Application Fee

    The 2022 Electronic Export Application Fee:
    [GRAPHIC] [TIFF OMITTED] TN29DE21.006
    
    As published in the 2016 final rule, the Electronic Export 
Application Fee Formula is:

[[Page 74065]]

[GRAPHIC] [TIFF OMITTED] TN29DE21.007

    FSIS stated in the 2016 final rule (81 FR 42225) and the 2017 
Federal Register notice (FR 82 42056) that it would update and 
recalculate the fee based on the best available estimates for costs and 
number of applications; however, the number of export applications (the 
denominator in the formula) cannot be accurately assessed until a 
majority of countries are included in the export component. Therefore, 
because a majority of countries are not yet included in the PHIS Export 
component, the cost estimates and projected export applications in the 
final rule remain the best estimate for 2022, leaving the electronic 
export application fee unchanged.

Additional Public Notification

    Public awareness of all segments of rulemaking and policy 
development is important. Consequently, FSIS will announce this Federal 
Register publication on-line through the FSIS website located at: 
https://www.fsis.usda.gov/policy/federal-register-rulemaking/federal-register-rules. FSIS will also announce and provide a link to this 
Federal Register publication through the FSIS Constituent Update, which 
is used to provide information regarding FSIS policies, procedures, 
regulations, Federal Register notices, FSIS public meetings, and other 
types of information that could affect or would be of interest to our 
constituents and stakeholders. The Constituent Update is available on 
the FSIS website. Through the website, FSIS can provide information to 
a much broader, more diverse audience. In addition, FSIS offers an 
email subscription service which provides automatic and customized 
access to selected food safety news and information. This service is 
available at: https://www.fsis.usda.gov/subscribe. Options range from 
recalls to export information, regulations, directives, and notices. 
Customers can add or delete subscriptions themselves and have the 
option to password protect their accounts.

USDA Non-Discrimination Statement

    In accordance with Federal civil rights law and USDA civil rights 
regulations and policies, the USDA, its Agencies, offices, and 
employees, and institutions participating in or administering USDA 
programs are prohibited from discriminating based on race, color, 
national origin, religion, sex, gender identity (including gender 
expression), sexual orientation, disability, age, marital status, 
family/parental status, income derived from a public assistance 
program, political beliefs, or reprisal or retaliation for prior civil 
rights activity, in any program or activity conducted or funded by USDA 
(not all bases apply to all programs). Remedies and complaint filing 
deadlines vary by program or incident.
    Persons with disabilities who require alternative means of 
communication for program information (e.g., Braille, large print, 
audiotape, American Sign Language, etc.) should contact the responsible 
Agency or USDA's TARGET Center at (202) 720-2600 (voice and TTY) or 
contact USDA through the Federal Relay Service at (800) 877-8339. 
Additionally, program information may be made available in languages 
other than English.
    To file a program discrimination complaint, complete the USDA 
Program Discrimination Complaint Form, AD-3027, found online at How to 
File a Program Discrimination Complaint and at any USDA office or write 
a letter addressed to USDA and provide in the letter all of the 
information requested in the form. To request a copy of the complaint 
form, call (866) 632-9992. Submit your completed form or letter to USDA 
by: (1) Mail: USDA, Office of the Assistant Secretary for Civil Rights, 
1400 Independence Avenue SW, Washington, DC 20250-9410; (2) fax: (202) 
690-7442; or (3) email: [email protected]. USDA is an equal 
opportunity provider, employer, and lender.

Paul Kiecker,
Administrator.
[FR Doc. 2021-28300 Filed 12-28-21; 8:45 am]
BILLING CODE 3410-DM-P