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<h1 class="title"><a name="_Toc238895378"></a>Final Regulatory Flexibility Analysis</h1>
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<h1 class="title"><a name="_Toc238895379"></a>Affirmation of Interim Rule as Final Rule </h1>
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<h1 class="title">Citrus Seed Imports; Citrus Greening and Citrus Variegated Chlorosis (7 CFR 319.37)</h1>
<h1 class="title"><a name="_Toc238895381"></a>[APHIS-2008-0052]</h1>
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<h2 class="subtitle"><a name="_Toc238895382"></a>U.S. Department of Agriculture</h2>
<h2 class="subtitle"><a name="_Toc238895383"></a>Animal and Plant Health Inspection Service</h2>
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<h2 class="subtitle">	January 2011</h2>
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<p>Table of Contents
Introduction	1
Final Regulatory Flexibility Analysis	1
Need for and Objectives of the Rule	1
Significant Issues raised in response to the Initial Regulatory Flexibility Analysis	2
Affected Small Entities	2
Steps taken by APHIS to minimize Significant Economic Impacts on Small Entities	4
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<h1><a name="_Toc281837006"></a>Introduction</h1>
<p><a name="_Toc238895387"></a><a name="_Toc238895454"></a>We are adopting as a final rule, without change, an interim rule that amended the regulations governing the importation of nursery stock to prohibit the importation of propagative seed of several Rutaceae (citrus family) genera from certain countries where citrus greening or citrus variegated chlorosis (CVC) is present.  The interim rule also required propagative seed of these genera from all other countries to be accompanied by a phytosanitary certificate with an additional declaration that neither citrus greening nor CVC are known to occur in the country where the seed was produced.  We took that action because scientific evidence indicated that seed of certain genera of the family Rutaceae may be a pathway for the introduction of those diseases.  The action was necessary in order to prevent the introduction or dissemination of citrus greening or CVC within the United States.</p>
<h1><a name="_Toc281837007"></a>Final Regulatory Flexibility Analysis</h1>
<p>The Regulatory Flexibility Act requires agencies to evaluate the potential effects of their proposed and final rules on small businesses, small organizations and small governmental jurisdictions.  Section 604 of the Act requires agencies to prepare and make available for public comment a final regulatory flexibility analysis that describes expected impacts of a rule on small entities.  </p>
<h2><a name="_Toc238895388"></a><a name="_Toc238895455"></a><a name="_Toc281837008"></a>Need for and Objectives of the Rule</h2>
<p><a name="_Toc238895389"></a><a name="_Toc238895456"></a>Citrus greening is considered to be one of the most serious citrus diseases in the world.  Citrus greening is a bacterial disease caused by strains of the bacterial pathogens “<u>Candidatus</u> Liberibacter asiaticus,” “<u>Candidatus</u> Liberibacter africanus”, and “<u>Candidatus</u> Liberibacter americanus” that attack the vascular system of host plants.  The pathogens are phloem-limited, inhabiting the food-conducting tissue of the host plant, and causes yellow shoots, blotchy mottling and chlorosis, reduced foliage, and tip dieback of citrus plants.  Citrus greening greatly reduces production, destroys the economic value of the fruit, and can kill trees.  Once a tree is infected, there is no cure for citrus greening.  In areas of the world where the disease is endemic, citrus trees decline and die within a few years and may never produce usable fruit.  Citrus greening was first detected in the United States in Miami-Dade County, FL, in 2005, and is only known to be present in the United States in the States of Florida and Georgia, Puerto Rico, two parishes in Louisiana, and two counties in South Carolina.</p>
<p>CVC is also a highly injurious disease of citrus.  Caused by a strain of the bacterium <u>Xylella</u> <u>fastidiosa</u>, CVC causes severe chlorosis between veins on the leaves of affected plants.  Leaves on affected plants frequently have discoloration of the upper leaf coupled with brown lesions underneath.  CVC may reduce plant growth and lead to abnormal flowering and fruit production.  CVC is currently not known to occur in the United States.  </p>
<p>Accordingly, the objective of the interim rule was to prevent the entry or spread of HLB and CVC from foreign countries into the United States, and thereby protect the U.S. citrus and related industries from adverse production and economic consequences of these diseases.</p>
<h2><a name="_Toc281837009"></a>Significant Issues raised in response to the Initial Regulatory Flexibility Analysis</h2>
<p>We received no comments responding directly to the Initial Regulatory Flexibility Analysis; however, one commenter did state that the rule should be withdrawn due to potential economic repercussions associated with its issuance.  We respond to this comment in the affirmation itself.</p>
<h2><a name="_Toc238895390"></a><a name="_Toc238895457"></a><a name="_Toc281837010"></a>Affected Small Entities</h2>
<p>Entities most likely to be affected by this rule are nursery operations producing citrus nursery stock for field plantings.  The Small Business Administration (SBA) small-entity standard for nurseries, based upon the North American Industry Classification System (NAICS) code 111421 (nursery and tree production), is $750,000 or less in gross annual receipts.[footnoteRef:1] According to the <i>2007 Census of Agriculture</i>, there were 34,532 entities engaged in nursery and tree production within the United States.  Of these, at least 78 percent had annual sales in 2007 of less than $500,000.[footnoteRef:2]  Thus, it is reasonable to assume that a majority of the operations affected by the interim rule were small entities.  [1:  Source:”U.S. Small Business Administration, Table of Small Business Size Standards Matched to North American Industry Classification System Codes.”  Located at http://www.sba.gov/sites/default/files/Size_Standards_Table.pdf.  Accessed January 3, 2011. 
]  [2:  Source:  Summary by North American Industry Classification System:  2007.  Located at http://www.agcensus.usda.gov/Publications/2007/Full_Report/Volume_1,_Chapter_1_US/st99_1_062_062.pdf.] 
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<p>However, we continue to lack information on the size distribution of nursery operations that import seed of the <i>Rutaceae</i> genera, and, correspondingly, the degree to which any such nurseries relied upon seed of host genera of HLB or CVC from a country in which either or both pests are known to exist.  Because APHIS’ Plant Protection and Quarantine division reported only three shipments of such seed in FY 2007—the last FY in which such importation was allowed—it is reasonable to assume that few, if any, operations were dependent on such imports.  This assumption is also buttressed by the absence of adverse comments received on the Initial Regulatory Flexibility Analysis prepared in support of the interim rule.  That said, any such entity could have instead begun to import seed of the specified <i>Rutaceae </i>genera from a country where HLB and CVC are not known to exist, if it met the conditions for importation specified in the interim rule.  </p>
<h2><a name="_Toc238895393"></a><a name="_Toc238895460"></a><a name="_Toc281837011"></a>Steps taken by APHIS to minimize Significant Economic Impacts on Small Entities</h2>
<p>Based on our review of available information, APHIS does not expect the rule to have a significant economic impact on small entities.  In the absence of significant economic impacts, we have not identified alternatives that would minimize such impacts.</p>
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