[Federal Register Volume 87, Number 103 (Friday, May 27, 2022)]
[Notices]
[Pages 32112-32116]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-11423]
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DEPARTMENT OF AGRICULTURE
Farm Service Agency
[Docket ID FSA-2022-0006]
Notice of Funds Availability (NOFA) for the Commodity Container
Assistance Program
AGENCY: Farm Service Agency, Department of Agriculture (USDA).
ACTION: Notification of funds availability.
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SUMMARY: The Farm Service Agency (FSA) is announcing the availability
of funding for the Commodity Container Assistance Program (CCAP) in
response to temporary market disruptions that have created logistical
challenges associated with all aspects of the availability and flow of
containers to transport agricultural commodities and products made from
those commodities (collectively referred to as ``agricultural
commodities''), and are preventing or delaying American-grown
agricultural commodities from reaching their markets. CCAP will be
focused on increasing intermodal container capacity through
partnerships with the Port of Oakland, in Oakland, California, and the
Northwest Seaport Alliance (NWSA), a marine cargo operating partnership
between the Port of Seattle and the Port of Tacoma in Washington State.
Both the Port of Oakland and the ports managed by NWSA have been
identified as key gateways for American-grown agricultural commodities,
and each have also experienced significant challenges with the flow of
containerized agricultural commodities. To assist owners of American-
grown agricultural commodities in shipping their commodities from U.S.
ports to global markets, CCAP will support improved use of empty
shipping containers, along with the prepositioning and temporary
storage of filled shipping containers near export terminals. USDA may
pursue additional temporary partnerships with other ports or intermodal
facilities as supply chain conditions warrant, if funding is available.
In this document, FSA is providing the eligibility requirements,
application process, and payment calculations for CCAP.
DATES:
Funding availability: Implementation will begin May 27, 2022.
Applications Due Date: We will accept applications for funding
through January 31, 2023.
Comment Due Date: We will consider comments on the information
collection request discussed in the Paperwork Reduction Act section
that we receive by: July 26, 2022.
ADDRESSES: Comments: We invite you to submit comments on the
information collection request. You may submit comments using any of
the following methods, although FSA prefers that you submit comments
electronically through the Federal eRulemaking Portal:
Federal eRulemaking Portal: Go to http://www.regulations.gov and search for Docket ID FSA-2021-0012. Follow the
online instructions for submitting comments.
Mail, Hand-Delivery, or Courier: Director, Price Support
Division, FSA, USDA, 1400 Independence Avenue SW, Stop 0510,
Washington, DC 20250-0522. In your comment, specify the docket ID FSA-
2022-0006.
All comments received, including those received by mail, will be
posted without change and will be publicly available on http://www.regulations.gov.
Applications: To apply, send a complete form FSA-862, Commodity
Container Assistance Program (CCAP) Application, to the FSA National
Office by email to: [email protected].
FOR FURTHER INFORMATION CONTACT: Danielle L. Cooke; telephone: (202)
720-1919; or by email: [email protected]. Persons with
disabilities who require alternative means for communication should
contact the USDA Target Center at (202) 720-2600 (voice) or (844) 433-
2774 (toll-free nationwide).
SUPPLEMENTARY INFORMATION:
Background
As agricultural producers and companies deal with the continued
impacts of the COVID-19 pandemic, ocean carriers' poor service and
refusal to serve customers, including refusing to provide and ship
containers, have exacerbated existing challenges. Specifically, ocean
carriers have made fewer shipping containers available for U.S.
agricultural commodities, repeatedly changed return dates, and charged
unjust fees. These same ocean carriers have short-circuited the
pathways typically used to make shipping containers available to be
filled with agricultural and other goods, and they have subsequently
rushed these containers back to foreign ports empty. These trends have
and continue to be seen at several U.S. ports, including but not
limited to the Port of Oakland, the Port of Seattle, and the Port of
Tacoma, where many ocean carriers have partially or completely
suspended their services. Historically, approximately 60 percent of the
products marketed through the Port of Oakland were agricultural
commodities. Now, because of ocean carriers' disruptive behavior, some
American-grown agricultural commodities have faced severe challenges in
reaching their markets. Containerized exports of agricultural goods
fell by 17 percent from California ports, costing California
agriculture an estimated $2.1 billion May to September 2021,\1\ with a
more severe decline of 34 percent for the Port of Oakland. Similar
challenges exist at the ports managed by the NWSA in Washington, where
congestion-induced impacts to vessel schedules have made it difficult
for agricultural goods to be loaded on ships at the export terminals.
Containerized exports of agricultural commodities from Seattle are down
30 percent during the last 6 months of 2021 while empty shipping
containers leaving the Port of Seattle have increased by a similar
percentage.
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\1\ See https://giannini.ucop.edu/publications/are-update/issues/2021/25/2/containergeddon-and-california-agriculture/.
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In accordance with 15 U.S.C. 714c, the Secretary is using CCC funds
to assist owners of agricultural commodities in shipping domestic
agricultural commodities out of the Port of Oakland and NWSA. Funds
available to CCC will be used as authorized by section 5(b) of the CCC
Charter Act (15 U.S.C. 714c(b)). This authority will be used to assist
in making available materials and facilities in connection with the
marketing of agricultural commodities. It will assist owners of U.S.
agricultural commodities with ongoing market disruptions and facilitate
the recovery of shipping and other logistical services required to
bring domestically produced agricultural commodities to markets.
[[Page 32113]]
Specifically, FSA will provide a $125 per container payment to
partially assist agricultural commodity owners with the additional
logistical expenses associated with picking up empty shipping
containers at the Port of Oakland to be filled with agricultural
commodities. The Port of Oakland has opened a 25-acre temporary
terminal to prepare and ease the provision of empty containers to be
filled, which will ultimately reduce congestion at the main terminal.
Through its separate gate, this terminal will allow for quicker pickup
of empty containers and provide a pathway to bypass the congestion at
the main terminals. The separate gate will also provide for increased
access to available equipment and ultimately help avoid fewer
unpredictable congestion surcharges for trucks. Under normal
circumstances empty containers would be easily available from ocean
carriers at the regular terminals, the combination of congestion,
potential for additional drayage, and the terminal fees will add cost
to the agricultural commodity owners and necessitates the $125 per
container payment.
Additionally, through the partnerships with both the Port of
Oakland and NWSA, FSA will offer payments of $200 per container for
filled dry containers and $400 per container for filled refrigerated
containers (generally referred to as ``reefer containers'') to owners
who deliver such filled containers to designated temporary storage
terminals. These payments will help address the logistical costs of
moving a container twice--first to the preposition terminal, and second
to the terminal loading the vessel--along with the costs associated
with temporary storage. Prior to the recent unpredictable delivery and
export windows, owners of agricultural commodities had been provided
sufficient delivery windows and notice to deliver the agricultural
commodities directly to the terminal that loads the vessel.
In each of these cases, the agricultural commodity owner will
likely incur an extra charge for short distance transportation, or
``drayage,'' fees from the terminal operator or ocean carrier and daily
storage for any prepositioned filled containers. The drayage alone is
expected to range between $150 and $250 per container based on
discussions with agricultural shippers operating in the Oakland,
Seattle, and Tacoma regions. Temporary storage of filled containers is
expected to cost about $50 per dry container per day and $200 for
reefer containers. The per-container fee for reefer containers is
higher, since reefer containers require additional electricity and
labor costs, which directly result in higher storage and transportation
costs. The value of CCAP for U.S. companies lies in the benefits of
increasing the ability of moving containers to meet narrow and changing
shipping windows provided by the ocean carriers. These payments will
lessen the burden on owners to manage the logistical challenges and
continue to move containers despite the service challenges. All
payments to agricultural commodity owners will be made in arrears and
verified with terminal records.
USDA will make payments as frequently as monthly to eligible owners
or designated marketing agents of U.S. agricultural commodities based
on the number of eligible shipping containers they picked up or stored
starting retroactively back to March 1, 2022, through December 31,
2022, from eligible ports to ship agricultural commodities to their
designated markets on container ships.
FSA is administering the direct payments under the general
supervision and direction of the Deputy Administrator.
Definitions
The following definitions apply to this notice:
Deputy Administrator means Deputy Administrator for Farm Programs,
Farm Service Agency, U.S. Department of Agriculture, or their designee.
Designated marketing agent means an individual or entity that has
explicit written permission to apply for CCAP from, and on behalf of,
the owner of the agricultural commodities.
Owner means a business entity, including cooperative, handler,
company, or exporter that is liable for and has ownership of the
agricultural commodities in transit. Only one owner is allowed to apply
for payment per container.
Picked up means the applicant picked up empty shipping containers
from the designated port terminal to be filled with eligible
agricultural commodities.
Stored means the applicant delivered the shipping container filled
with eligible agricultural commodities to the designated port terminal
for temporary storage at a designated storage terminal.
United States means all 50 states of the United States, the
District of Columbia, the Commonwealth of Puerto Rico, and any other
territory or possession of the United States.
Eligible Commodities
Eligible agricultural commodities are agricultural commodities
(other than tobacco) that are grown or produced in the United States
for food, feed, or fiber, and products made from those commodities,
including forestry products, that are to be or were shipped in a
shipping container picked up from the Port of Oakland or contained
within a filled shipping container stored at the Port of Oakland or the
NWSA locations from March 1, 2022, through December 31, 2022. A list of
examples of eligible and ineligible commodities will be posted on the
FSA website for CCAP.
Eligibility
To be eligible for a CCAP payment, each applicant must:
Own domestically-grown or produced agricultural
commodities or be the designated marketing agent of the owner;
Have picked up containers from the Port of Oakland or
stored containers at the Port of Oakland or NWSA and filled the
containers with agricultural commodities that are grown or produced in
the United States for food, feed, or fiber, and products made from
those commodities;
Have properly executed power of attorney or signature
authority if representing an individual or entity;
Submit completed application as specified in the
Application Process section below; and
Have a Unique Entity Identifier (created in and used by
www.SAM.gov).
Application Process
FSA will accept applications from May 31, 2022 through January 31,
2023. To apply for CCAP, each eligible applicant must submit a
completed form FSA-862, Commodity Container Assistance Program (CCAP)
Application to provide the monthly number of containers picked up or
stored by type of container and by port. Applicants may submit
applications on a monthly basis, all at once at the end of CCAP, or for
a combination of months, but applicants should not submit duplicate
information for a month that has already been previously submitted.
Applications should be submitted to the FSA National Office by email to
the following email address: [email protected].
Applicants are to submit only one FSA-862 for all shipping
containers picked up or stored and report the number of containers
picked up from the specified port for the relevant month(s), regardless
of the number of agricultural commodities that are packed and shipped
out of the designated port. In other words, the application is based on
the number of shipping containers picked up or stored and used for U.S.
agricultural
[[Page 32114]]
commodities, but it is not based on the type of agricultural commodity.
Shipping containers that are filled with non-agricultural commodities
are not eligible for CCAP payments. Revised applications will not be
allowed without supporting documentation if the application has been
approved for payment and any revised applications must be submitted no
later than January 31, 2023. Subject to available funds, CCAP payments
will not be issued until an applicant certifies the number of
containers picked up or stored each month or group of months at the
designated port, as applicable. The applicant must certify to the total
number of containers picked up or stored by the application period
deadline as specified in this document.
The number and type of shipping containers claimed on the FSA-862
will be as certified by the applicant and are subject to spot check.
Applicants may also be asked to provide documentation of what
agricultural commodity was loaded into the container in order to
confirm that the shipping container was used for agricultural
commodities.
If requested by FSA, the applicant must provide supporting
documentation to verify the accuracy of information provided on the
application, including to substantiate the number and type of shipping
containers, ownership of the commodities, or authority to act as a
designated marketing agent. If any supporting documentation is
requested, the documentation must be submitted to FSA within 30 days
from the request or the application will be disapproved by FSA.
Payment Rates and Calculations
Information and expert opinion from the Port of Oakland and the
NWSA authorities, along with information associated with the logistics
movement costs of different container types, were used to estimate the
increased additional movement logistics costs associated with
agricultural containerized exports.
Payments will be calculated based upon the port, whether containers
are picked up or stored, and the type of containers (empty containers
versus filled dry or reefer containers). The CCAP payment rate is on a
per container basis as shown in the following table.
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CCAP payment
Location and action rate ($/
Container)
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Picked up empty shipping containers:
Port of Oakland................................... $125
Stored filled shipping containers:
Port of Oakland and NWSA--
Dry containers................................ 200
Reefer containers............................. 400
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The CCAP payment will be calculated as follows:
Number of containers picked up from or stored in the designated
port multiplied by the respective CCAP payment rate for that type of
container.
For example, the owner of agricultural goods that are stored at the
NWSA facility submits an application specifying 10 dry containers and 3
reefer containers for the month of March 2022. FSA calculates the
payment by multiplying 10 x $200 for the dry containers, and 3 x $400
for the reefer containers, for a total payment of $3,200 for that
month.
The temporary storage of a container should be reported only for
the month that the container was delivered to the designated port
terminal for temporary storage even if the storage period covers parts
of more than one month. This is a one-time storage payment. It does not
matter how long a container is stored. Therefore, the same container
and shipment should not be included for a storage payment on an
application more than once.
The applicant may be eligible to receive separate payments for the
same container: Once for being picked up empty and later for being
temporarily stored at a designated port. For example, if an almond
producer picked up 10 empty containers in May to be filled with almonds
from the designated terminal to provide empty containers at the Port of
Oakland, that almond producer would be eligible to apply for the $125
per container payment for those 10 empty containers. If that same
almond producer then immediately filled and shipped 5 of those
containers directly through the export terminal, but the remaining 5
containers were filled and delivered to the designated terminal to be
temporarily stored for a few days in June before being drayed to the
export terminal and loaded in a vessel later in June, the almond
producer would be eligible to apply for the $200 per container payment
for the temporary storage of 5 containers in June (dry containers in
this example). Only containers picked up or temporarily stored at the
designated storage terminal are eligible, so even if the 5 containers
that were exported in May were held for a few days at the export
terminal, they would not be eligible for CCAP. In this example, FSA
calculates the payment by multiplying 10 x $125 for picking up empty
containers in May, and 5 x $200 for the temporary storage of dry
containers in June, for a total payment of $2,250 ($1,250 for May and
$1,000 for June).
Provisions Requiring Refund to FSA
In the event that any application for a CCAP payment resulted from
erroneous information reported by the applicant, FSA will recalculate
the payment, and the applicant must refund any excess payment to FSA,
including interest to be calculated from the date of the disbursement
to the applicant. If, for whatever reason, FSA determines that the
applicant misrepresented the number and type of shipping containers,
the application will be disapproved, and the applicant must refund the
full CCAP payment to FSA with interest from the date of disbursement.
Any required refunds must be resolved in accordance with 7 CFR part 3.
Miscellaneous Provisions
All applicants must provide the name and address of the entity
receiving payment. Appeal regulations specified in 7 CFR parts 11 and
780 and equitable relief and finality provisions specified in 7 CFR
part 718, subpart D, apply to determinations under CCAP. The
determination of matters of general applicability that are not in
response to, or result from, an individual set of facts in an
individual participant's application for payment are not matters that
can be appealed. Such matters of general applicability include, but are
not limited to, the determination of applicable time periods and the
payment calculation for CCAP.
Participants are required to retain documentation in support of
their application for 3 years after the date of
[[Page 32115]]
approval. Participants receiving CCAP payments or any other person that
furnishes such information to USDA must permit authorized
representatives of USDA or the Government Accountability Office, during
regular business hours, to enter the participant's business and to
inspect, examine, and to allow representatives to make copies of books,
records, or other items for the purpose of confirming the accuracy of
the information provided by the participant.
Applicants have a right to a decision in response to their
application. If an applicant files a late CCAP application, the
application will be considered a request to waive the deadline.
Requests to waive or modify program provisions, including requests
to waive the deadline, are at the discretion of the Deputy
Administrator. The Deputy Administrator has the authority to waive or
modify application deadlines and other requirements or program
provisions not specified in law in cases where the Deputy Administrator
determines it is (1) equitable to do so and (2) where the lateness or
failure to meet such other requirements or program provisions do not
adversely affect the operation of CCAP.
Applicants who request to waive or modify CCAP provisions do not
have a right to a decision on those requests, and the Deputy
Administrator's refusal to exercise discretion on requests to waive or
modify CCAP provisions will not be considered an adverse decision and
is, by itself, not appealable.
The regulations governing offsets in 7 CFR part 3 apply to CCAP
payments.
In either applying for or participating in CCAP, or both, the
applicant is subject to laws against perjury (including but not limited
to 18 U.S.C. 1621). If the applicant willfully makes and represents as
true any verbal or written declaration, certification, statement, or
verification that the applicant knows or believes not to be true, in
the course of either applying for or participating in CCAP, or both,
then the applicant may be found to be guilty of perjury. Except as
otherwise provided by law, if guilty of perjury the applicant may be
fined, imprisoned for not more than 5 years, or both, regardless of
whether the applicant makes such verbal or written declaration,
certification, statement, or verification within or outside the United
States.
Paperwork Reduction Act Requirements
In compliance with the Paperwork Reduction Act (44 U.S.C. Chapter
35), FSA is requesting comments from interested individuals and
organizations on the information collection request associated with
CCAP. After the 60-day period ends, the information collection request
will be submitted to the Office of Management and Budget (OMB) for a 3-
year approval. To start the CCAP information collection approval, prior
to publishing this notice, FSA received emergency approval from OMB for
6 months.
Title: Commodity Container Assistance Program (CCAP).
OMB Control Number: 0560-0310.
Type of Request: New Collection.
Abstract: FSA will provide assistance to eligible owners or
designated marketing agents of U.S. agricultural commodities using
eligible shipping containers from the Port of Oakland and designated
ports associated with the NWSA. The eligible owners or designated
marketing agents must complete the form FSA-862, CCAP Application for
FSA to qualify for CCAP payments and to calculate the CCAP payments
based upon the port, type of service (temporary storage versus
providing empty containers) and the type of the shipping containers
(empty containers or filled dry or reefer containers). FSA may request
additional supporting documents for verification of information on a
completed CCAP Application.
For the following estimated total annual burden on respondents, the
formula used to calculate the total burden hour is the estimated
average time per response multiplied by the estimated total annual
responses.
Estimate of Respondent Burden: Public reporting burden for this
information collection is estimated to average 0.33 hours per response
to include the time for reviewing instructions, searching for
information, gathering and maintaining the data, and completing and
reviewing the collection of information.
Type of Respondents: Businesses.
Estimated Annual Number of Respondents: 200.
Estimated Number of Responses Per Respondent: 8.
Estimated Total Annual Responses: 1,600.
Estimated Average Time Per Response: 0.33.
Estimated Total Annual Burden on Respondents: 528.
We are requesting comments on all aspects of this information
collection to help us to:
(1) Evaluate whether the collection of information is necessary for
the proper performance of the functions of the FSA, including whether
the information will have practical utility;
(2) Evaluate the accuracy of FSA's estimate of burden including the
validity of the methodology and assumptions used;
(3) Enhance the quality, utility, and clarity of the information to
be collected; and
(4) Minimize the burden of the collection of information on those
that are to respond, including through the use of appropriate
automated, electronic, mechanical, or other technological collection
techniques or other forms of information technology.
All comments received in response to this document, including names
and addresses when provided, will be a matter of public record.
Comments will be summarized and included in the submission for Office
of Management and Budget approval.
Environmental Review
The environmental impacts 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 the FSA regulations
for compliance with NEPA (7 CFR part 799).
The purpose of CCAP is to establish a marketing assistance program
to support agricultural commodity owners of U.S. agricultural
commodities for pick up or temporary storage of eligible shipping
containers from the Port of Oakland and NWSA from March 1, 2022,
through December 31, 2022. The limited discretionary aspects of CCAP do
not have the potential to impact the human environment as they are
administrative. Accordingly, these discretionary aspects are covered by
the Categorical Exclusions in 7 CFR 799.31(b)(6)(iii) that applies to
price support programs.
No Extraordinary Circumstances (7 CFR 799.33) exist. As such, the
implementation of CCAP and the participation in CCAP do not constitute
major Federal actions that would significantly affect the quality of
the human environment, individually or cumulatively. Therefore, FSA
will not prepare an environmental assessment or environmental impact
statement for this action and this document serves as documentation of
the programmatic environmental compliance decision for this federal
action.
Federal Assistance Programs
The title and number of the Federal assistance programs, as found
in the
[[Page 32116]]
Assistance Listing,\2\ to which this document applies is 10.966,
Commodity Container Assistance Program (CCAP).
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\2\ See https://sam.gov/content/assistance-listings.
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USDA Non-Discrimination Policy
In accordance with Federal civil rights law and U.S. Department of
Agriculture (USDA) civil rights regulations and policies, 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 or 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 (for example, braille, large
print, audiotape, American Sign Language, etc.) should contact the
responsible Agency or USDA TARGET Center at (202) 720-2600 (voice and
TTY) or (844) 433-2774 (toll-free nationwide). 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 https://www.usda.gov/oascr/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 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 mail to: U.S. Department of Agriculture, Office of
the Assistant Secretary for Civil Rights, 1400 Independence Avenue SW,
Washington, DC 20250-9410 or email: [email protected].
USDA is an equal opportunity provider, employer, and lender.
William Marlow,
Acting Administrator, Farm Service Agency.
[FR Doc. 2022-11423 Filed 5-26-22; 8:45 am]
BILLING CODE 3410-05-P