GAO-02-578R 

United States General Accounting Office

Washington, DC 20548 

B-290173 

May 6, 2002 

The Honorable Tom Harkin 

Chairman 

The Honorable Richard G. Lugar 

Ranking Minority Member 

Committee on Agriculture, Nutrition, and Forestry 

United States Senate 

The Honorable Larry Combest 

Chairman 

The Honorable Charles W. Stenholm 

Ranking Minority Member 

Committee on Agriculture 

House of Representatives 

Subject: Department of Agriculture, Commodity Credit Corporation: Noninsured 

Crop Disaster Assistance Program

Pursuant to section 801(a)(2)(A) of title 5, United States Code, this is our report on 

a major rule promulgated by the Department of Agriculture, Commodity Credit 

Corporation (CCC), entitled “Noninsured Crop Disaster Assistance Program” (RIN: 

0560-AG20). We received the rule on April 26, 2002. It was published in the Federal 

Register as an interim rule on March 19, 2002. 67 Fed. Reg. 12446. 

The interim rule amends the CCC’s regulations regarding the Noninsured Crop 

Disaster Assistance Program. The rule removes area requirements, announces new 

requirements concerning the filing of applications, payment of service fees, and 

reporting of crop acreage, yield, and production. 

Enclosed is our assessment of the CCC’s compliance with the procedural steps 

required by section 801(a)(1)(B)(i) through (iv) of title 5 with respect to the rule. 

Our review indicates that the CCC complied with the applicable requirements. 

If you have any questions about this report, please contact James W. Vickers, 

Assistant General Counsel, at (202) 512-8210. The official responsible for GAO 

evaluation work relating to the subject matter of the rule is Robert Robinson, 
Page 2 GAO-02-578R 

Managing Director, Natural Resources and Environment. Mr. Robinson can be 

reached at (202) 512-3841. 

 signed 

Kathleen E. Wannisky 

Managing Associate General Counsel 

Enclosure 

cc: James R. Little 

Executive Vice President 

Commodity Credit Corporation 

Department of Agriculture 
GAO-02-578R 

ENCLOSURE 

ANALYSIS UNDER 5 U.S.C. § 801(a)(1)(B)(i)-(iv) OF A MAJOR RULE 

ISSUED BY THE 

DEPARTMENT OF AGRICULTURE, 

COMMODITY CREDIT CORPORATION 

ENTITLED 

"NONINSURED CROP DISASTER ASSISTANCE PROGRAM" 

(RIN: 0560-AG20) 

(i) Cost-benefit analysis

CCC estimates that the total cost of the program would be $147 million annually 

($162 million in benefits less the $15 million in service fees). 

(ii) Agency actions relevant to the Regulatory Flexibility Act, 5 U.S.C. §§ 603-605, 607 

and 609

Since the interim rule did not follow the issuance of a notice of proposed 

rulemaking, the requirements of the Regulatory Flexibility Act do not apply. 

(iii) Agency actions relevant to sections 202-205 of the Unfunded Mandates Reform 

Act of 1995, 2 U.S.C. §§ 1532-1535

As defined in title II, the interim rule does not contain either an intergovernmental or 

private sector mandate of more than $100 million in any one year. 

(iv) Other relevant information or requirements under acts and executive orders

Administrative Procedure Act, 5 U.S.C. §§ 551 et seq. 

Because section 161 of the Federal Agriculture Improvement and Reform Act of 1996 

exempts the rulemaking from prior comment, the interim rule is being issued 

without prior notice and comment under 5 U.S.C. 553. However, CCC is accepting 

comments on the interim rule for a 30-day period. 

Paperwork Reduction Act, 44 U.S.C. §§ 3501-3520 

Section 161 of the Federal Agriculture Improvement and Reform Act of 1996 

provides that CCC may issue regulations without regard to the Paperwork Reduction 

Act. However, CCC will later publish a separate notice announcing a 60-day 

comment period on the collections and seek the Office of Management and Budget’s 

(OMB) approval. 
Page 2 GAO-02-578R 

Statutory authorization for the rule 

The interim rule is promulgated pursuant to section 196 of the Federal Agriculture 

Improvement and Reform Act of 1996, as amended by section 109 of the Agricultural 

Risk Protection Act of 2000 (Pub. L. 106-224, June 20, 2000). 

Executive Order No. 12866 

The final rule was reviewed by OMB and found to be an “economically significant”

regulatory action under the order. 

Executive Order No. 13132 (Federalism) 

The CCC has reviewed the interim rule and determined that it does not have 

sufficient federalism implications to warrant the preparation of a federalism 

assessment.