### United States

Department of Agriculture Animal and Plant Health Inspection Service Novem ber 2012 **Analysis in Support of Certification that the** 

**Rule will not have a Significant Economic Impact on a Substantial Number of Small**  **Enti ties**  **Interim Rule**  **APHIS -**  **201 2**  **- 00**  **75 Expansion of**  **Gypsy Moth Quarantine** 

Policy & Program Development Policy Analysis & Development0



### Summary The State of Wisconsin has expand ed the intrastate quarantine to include Price, Clark, Ashland, Bayfield , and Jackson c ounties
. This rule similarly expand s the f ederal ly regulated
area. R egulated articles moved from gy ps y moth quarantined areas are subject to inspection and certification to prevent spread of this pest. Fifty
- eight entities will be directl y a ffected b y this expansion of the quarantine area : 4 mills, 21 logger/hauler/yard operations, 31 Christmas tree growers, and 2 nurseries. W e expect that most if not all of these businesses are small according to Small Business Administration size standards
. T he impact of this interim rule will not be significant. B usinesses with compliance agreements can self

- inspect regulated articles moved from quarantined areas. Man y of the entities are already operating under compliance agreement s in accordance with the existing Federal Order. Businesses without compliance agreements can have inspection and certification services provided by

State or Federal officials at no cost. T he APHIS Administrator has determined that this action, if promul gated, will not have a significant economic impact on a substantial number of small entities.1



### Introduction This analy sis provides the basis, as required by the Regulatory

Flexibility

Act, for certification by

the APHIS Administrator that the interim rule, if promulgated, will not have a significant economic impact on a substantial number of small entities. The gy ps y moth, Lym antria dispar (Linnaeus), is a destructive pest of forest, shade, and commercial trees , including nursery stock and Christmas trees. The gy ps y moth regulations , 7 CFR 301.45 through 301.45
- 12 , restrict the interstate movement of regulated articles from generall y infested areas to prevent spread of this pest
. The interim rule will codify expanded areas of quarantine established un der Federal Order . R egulated articles include trees and shrubs with and without roots (e.g., Christmas trees), unless they

are greenhouse
- grown throughout the year; logs, pulpwood, and bark and bark products; mobile homes and associated equipment; and any other products, articles, or means of conveyance determined by an inspector to present a high risk of artificial spread. Regulated items moved from quarantined areas are subject to inspection and certification by authorized personnel or b y the businesses themselves, through compliance agreement s . 

### Potential **Impact on Small Entities** E xpan s ion of the existing gy ps y moth quarantine area to include Price, Clark, Ashland, Bayfi eld, and Jackson c ounties , Wisconsin, will affect 58 entities: 4 mills, 21 logger/h auler/yard operations, 31 Christmas tree growers, and 2 nurseries
. Although information on the size of these entities is not available, we expect that most are small according to Small Business Administration size standards . The small
- entity size standards for these ty pes of businesses ( as well as others that may be affected b y the quarantine ) are shown in t able 1
. We welcome public2

comment on the size of the identified affected entities , the extent to which they rel y on sales to
non - quarantined areas
. Twenty
- four additional businesses (similar to the ones listed) that are located outside the five, newly quarantine d counties may also be affected due to their purchas e of regulated articles from the five counties
. Table 1. Small
- entity

standards for indus tries that include businesses that may be affected by

the interim rule Industry and North American Industry Classification System Code Small
- entity Standard Maximum Annual Receipts Maximum Number of Employees Timber tract operations (113110) $7,000,00 0 Forest nurseries and gathering of forest products (113210) $7,000,000
Lo gging (113310) 500 Nursery and tree production (111421) $750,000 Flower, nursery

stock, and florists’ supplies merchant wholesalers (424930) 100 Retail nursery

and garden c enters (444220) $10,000,000 Landscaping services (561730) $7,000,000 Source: U.S. Small Business Administration, Table of Small Business Size Standards matched to North American Industry Classification S ys tem Codes, http://www.sba.gov/sites/default/files/files/Size_Standards_Table.pdf
. While most if not all of the entities directl y affected are expected to be small, the impact of this rule will not be significant. Through compliance agreement s , businesses can self
- inspect their regulated articles. Many of the entities are already operating under compliance agreement s in accordance with the existing Federal Order. Businesses without compliance agreements can3

have inspection and certification services provided by State or Federal officials at no cost. T he APHI S Administrator has determined that this action, if promulgated, will not have a significant economic impact on a substantial number of small entities.