This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

81425 

Vol. 85, No. 242 

Wednesday, December 16, 2020 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 930 

[Doc. No. AMS–SC–20–0079; SC20–930–4 

PR] 

Tart Cherries Grown in the States of 

Michigan, New York, Pennsylvania, 

Oregon, Utah, Washington and 

Wisconsin; Modification of 

Assessment Rate 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Proposed rule. 

SUMMARY: This proposed rule would 

implement a recommendation from the 

Cherry Industry Administrative Board 

(Board) to decrease the portion of 

assessments allocated to research and 

promotion activities and increase the 

portion allocated to administrative 

expenses. The overall assessment rate 

would remain unchanged. The proposed 

assessment rate would remain in effect 

indefinitely unless modified, 

suspended, or terminated. 

DATES: Comments must be received by 

January 15, 2021. 

ADDRESSES: Interested persons are 

invited to submit written comments 

concerning this proposed rule. 

Comments must be sent to the Docket 

Clerk, Marketing Order and Agreement 

Division, Specialty Crops Program, 

AMS, USDA, 1400 Independence 

Avenue SW, STOP 0237, Washington, 

DC 20250–0237; Fax: (202) 720–8938; or 

internet: https://www.regulations.gov. 

Comments should reference the 

document number and the date and 

page number of this issue of the Federal 

Register and will be available for public 

inspection in the Office of the Docket 

Clerk during regular business hours, or 

can be viewed at: https://

www.regulations.gov. All comments 

submitted in response to this rule will 

be included in the record and will be 

made available to the public. Please be 

advised that the identity of the 

individuals or entities submitting the 

comments will be made public on the 

internet at the address provided above. 

FOR FURTHER INFORMATION CONTACT: 

Thomas Nalepa, Marketing Specialist, or 

Christian D. Nissen, Regional Director, 

Southeast Marketing Field Office, 

Marketing Order and Agreement 

Division, Specialty Crops Program, 

AMS, USDA; Telephone: (863) 324– 

3375, Fax: (863) 291–8614, or Email: 

Thomas.Nalepa@usda.gov or 

Christian.Nissen@usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Richard Lower, 

Marketing Order and Agreement 

Division, Specialty Crops Program, 

AMS, USDA, 1400 Independence 

Avenue SW, STOP 0237, Washington, 

DC 20250–0237; Telephone: (202) 720– 

2491, Fax: (202) 720–8938, or Email: 

Richard.Lower@usda.gov. 

SUPPLEMENTARY INFORMATION: This 

action, pursuant to 5 U.S.C. 553, 

proposes an amendment to regulations 

issued to carry out a marketing order as 

defined in 7 CFR 900.2(j). This proposed 

rule is issued under Marketing 

Agreement and Order No. 930, both as 

amended (7 CFR part 930), regulating 

the handling of tart cherries produced in 

the States of Michigan, New York, 

Pennsylvania, Oregon, Utah, 

Washington, and Wisconsin. Part 930 

(referred to as the ‘‘Order’’) is effective 

under the Agricultural Marketing 

Agreement Act of 1937, as amended (7 

U.S.C. 601–674), hereinafter referred to 

as the ‘‘Act.’’ The Board locally 

administers the Order and is comprised 

of producers and handlers of tart 

cherries operating within the 

production area, and a public member. 

The Department of Agriculture 

(USDA) is issuing this proposed rule in 

conformance with Executive Orders 

13563 and 13175. This proposed rule 

falls within a category of regulatory 

actions that the Office of Management 

and Budget (OMB) exempted from 

Executive Order 12866 review. 

Additionally, because this proposed 

rule does not meet the definition of a 

significant regulatory action, it does not 

trigger the requirements contained in 

Executive Order 13771. See OMB’s 

Memorandum titled ‘‘Interim Guidance 

Implementing Section 2 of the Executive 

Order of January 30, 2017, titled 

‘Reducing Regulation and Controlling 

Regulatory Costs’ ’’ (February 2, 2017). 

This proposed rule has been reviewed 

under Executive Order 12988, Civil 

Justice Reform. Under the Order now in 

effect, tart cherry handlers are subject to 

assessments. Funds to administer the 

Order are derived from such 

assessments. It is intended that the 

assessment rate would be applicable to 

all assessable tart cherries for the 2020– 

21 crop year and continue until 

amended, suspended, or terminated. 

The Act provides that administrative 

proceedings must be exhausted before 

parties may file suit in court. Under 

section 608c(15)(A) of the Act, any 

handler subject to an order may file 

with USDA a petition stating that the 

order, any provision of the order, or any 

obligation imposed in connection with 

the order is not in accordance with law 

and request a modification of the order 

or to be exempted therefrom. Such 

handler is afforded the opportunity for 

a hearing on the petition. After the 

hearing, USDA would rule on the 

petition. The Act provides that the 

district court of the United States in any 

district in which the handler is an 

inhabitant, or has his or her principal 

place of business, has jurisdiction to 

review USDA’s ruling on the petition, 

provided an action is filed not later than 

20 days after the date of the entry of the 

ruling. 

This proposed rule would decrease 

the portion of the assessment rate 

allocated to research and promotion 

activities from $0.005 to $0.00275 per 

pound of tart cherries and increase the 

portion allocated to administrative 

expenses from $0.00075 to $0.003 per 

pound of tart cherries. The overall 

assessment rate established for the 

Board for the 2020–21 and subsequent 

fiscal periods would remain unchanged 

at $0.00575 per pound of tart cherries. 

The Order provides authority for the 

Board, with the approval of USDA, to 

formulate an annual budget of expenses 

and collect assessments from handlers 

to administer the program. The 

members are familiar with the Board’s 

needs and with the costs of goods and 

services in their local areas and are thus 

in a position to formulate an appropriate 

budget and assessment rate. The 

assessment rate is formulated and 

discussed in a public meeting. Thus, all 

directly affected persons have an 

opportunity to participate and provide 

input. 


khammond on DSKJM1Z7X2PROD with PROPOSALS
81426 Federal Register / Vol. 85, No. 242 / Wednesday, December 16, 2020 / Proposed Rules 

For the 2019–20 fiscal period, the 

Board recommended, and USDA 

approved, an assessment rate of 

$0.00575 per pound of tart cherries that 

would continue in effect from fiscal 

period to fiscal period unless modified, 

suspended, or terminated by USDA 

upon recommendation and information 

submitted by the Committee or other 

information available to USDA. 

During the September 10, 2020 

meeting, the Board recommended 2020– 

21 expenditures of $795,000 and an 

assessment rate of $0.00575 per pound 

of tart cherries. In comparison, last 

year’s budgeted expenditures were 

$1,956,500. The total assessment rate 

remains unchanged by this action. 

However, this proposed rule would 

decrease the portion of the assessment 

rate allocated to research and promotion 

activities from $0.005 to $0.00275 per 

pound of tart cherries and increase the 

portion allocated to administrative 

expenses from $0.00075 to $0.003 per 

pound of tart cherries. This shift in 

allocation would allow the Board to 

fund its administrative obligations 

while continuing limited research and 

promotion activities to help market this 

season’s below-average crop. The 

revised allocation would ensure the 

availability of adequate administrative 

funds despite a significant draw-down 

in reserves resulting from the 2019–20 

crop year assessment rate reduction. 

The major expenditures 

recommended by the Board for the 

2020–21 year include $350,000 for 

research and promotion, $255,000 for 

salaries and wages, and $130,000 for 

other administrative expenses. Budgeted 

expenses for these items in 2019–2020 

were $1,514,500, $250,000, and 

$130,000, respectively. 

The Board derived the recommended 

assessment rate by considering 

anticipated administrative expenses, an 

estimated crop of 141.46 million pounds 

of tart cherries (down from last year’s 

production of 236.3 million pounds), 

the current status of reserves, and the 

needs of the industry with regards to 

research and promotion activities. 

Income derived from handler 

assessments is calculated at $813,395 

(141.46 million pounds × $0.00575/ 

pound). The Board anticipates that due 

to approved exemptions and loss 

adjustments the actual income from 

assessments will be closer to $783,992. 

Assessment income, along with interest 

income and funds from the Board’s 

authorized reserve, would be adequate 

to cover budgeted expenses of $795,000. 

Funds in the reserve are estimated to be 

$75,096 at the end of the 2020–21 fiscal 

year. 

The assessment rate proposed in this 

rule would continue in effect 

indefinitely unless modified, 

suspended, or terminated by USDA 

upon recommendation and information 

submitted by the Board or other 

available information. 

Although this assessment rate would 

be in effect for an indefinite period, the 

Board will continue to meet prior to or 

during each fiscal period to recommend 

a budget of expenses and consider 

recommendations for modification of 

the assessment rate. The dates and times 

of Board meetings are available from the 

Board or USDA. Board meetings are 

open to the public and interested 

persons may express their views at these 

meetings. USDA would evaluate Board 

recommendations and other available 

information to determine whether 

modification of the assessment rate is 

needed. Further rulemaking would be 

undertaken as necessary. The Board’s 

2020–21 budget and those for 

subsequent fiscal periods will be 

reviewed and, as appropriate, approved 

by USDA. 

Initial Regulatory Flexibility Analysis 

Pursuant to requirements set forth in 

the Regulatory Flexibility Act (RFA) (5 

U.S.C. 601–612), the Agricultural 

Marketing Service (AMS) has 

considered the economic impact of this 

proposed rule on small entities. 

Accordingly, AMS has prepared this 

initial regulatory flexibility analysis. 

The purpose of the RFA is to fit 

regulatory actions to the scale of 

businesses subject to such actions in 

order that small businesses will not be 

unduly or disproportionately burdened. 

Marketing orders issued pursuant to the 

Act, and rules issued thereunder, are 

unique in that they are brought about 

through group action of essentially 

small entities acting on their own 

behalf. 

There are approximately 400 

producers of tart cherries in the 

regulated area and approximately 40 

handlers of tart cherries who are subject 

to regulation under the Order. Small 

agricultural producers are defined by 

the Small Business Administration 

(SBA) as those having annual receipts of 

less than $1,000,000, and small 

agricultural service firms have been 

defined as those whose annual receipts 

are less than $30,000,000 (13 CFR 

121.201). 

According to the National 

Agricultural Statistics Service (NASS) 

and Board data, the average annual 

grower price for tart cherries during the 

2019–20 season was approximately 

$0.15 per pound. With total utilization 

at 236.3 million pounds, the total 2019– 

20 crop value is estimated at $35.45 

million. Dividing the crop value by the 

estimated number of producers (400) 

yields an estimated average receipt per 

producer of $88,613. This is well below 

the SBA threshold for small producers. 

A free on board (FOB) price of $0.82 

per pound for processed tart cherries 

was derived from USDA’s 2020 

purchases of dried tart cherries at an 

average price of $4.11 per pound. The 

dried cherry price was converted to a 

raw product equivalent price at an 

industry recognized ratio of five to one. 

Based on utilization, this price 

represents a good estimate of the price 

for processed cherries. Multiplying this 

FOB price by total utilization of 236.3 

million pounds results in an estimated 

handler-level tart cherry value of $193.8 

million. Dividing this figure by the 

number of handlers (40) yields 

estimated average annual handler 

receipts of $4.8 million, which is below 

the SBA threshold for small agricultural 

service firms. Assuming a normal 

distribution, the majority of producers 

and handlers of tart cherries may be 

classified as small entities. 

This proposal would decrease the 

portion of the assessment rate allocated 

to research and promotion activities 

from $0.005 to $0.00275 per pound of 

tart cherries and increase the portion 

allocated to administrative expenses 

from $0.00075 to $0.003 per pound of 

tart cherries. The overall assessment rate 

established for the Board for the 2019– 

20 and subsequent fiscal periods would 

remain unchanged at $0.00575 per 

pound of tart cherries. The volume of 

assessable tart cherries for the 2020–21 

season is estimated at 141.46 million 

pounds. Thus, the $0.00575 rate should 

provide $813,395 in assessment income 

(141.46 million pounds × $0.00575/ 

pound). The Board anticipates that due 

to approved exemptions and loss 

adjustments the total income from 

assessments will be $783,992. Income 

derived from handler assessments, along 

with interest income and funds from the 

Board’s authorized reserve, would be 

adequate to cover budgeted expenses. 

The major expenditures 

recommended by the Board for the 

2020–21 year include $350,000 for 

Research and promotion, $255,000 for 

salaries and wages, and $130,000 for 

other administrative expenses. Budgeted 

expenses for these items in 2019–20 

were $1,514,500, $250,000, and 

$130,000, respectively. 

This proposed rule would shift the 

allocation of the assessment rate to 

decrease the portion allotted for 

research and promotion, while 

increasing the amount allocated for 

administrative costs. This adjustment 


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Federal Register / Vol. 85, No. 242 / Wednesday, December 16, 2020 / Proposed Rules 81427 

would provide enough funds for the 

Board’s administrative obligations and 

decrease the funding for research and 

promotion activities to reflect the 

significant reduction in the 2020–21 

crop. 

Prior to arriving at this budget and 

assessment rate, the Board considered 

production history, crop estimates, its 

financial statements, and the need to 

meet its administrative obligations and 

maintain some marketing efforts to 

increase demand for tart cherries. The 

Board discussed alternatives, including 

raising the assessment rate and 

borrowing funds; however, they were 

rejected due to the burden of increasing 

assessments on handlers and the cost of 

debt due to financing. The Board 

determined that 2020–21 expenditures 

of $795,000 were appropriate, and the 

recommended assessment rate and 

allocation, along with funds from 

interest income, and funds from 

reserves, would be adequate to cover the 

budgeted expenses. 

A review of historical information and 

preliminary information pertaining to 

the upcoming fiscal year indicates that 

the average grower price for the 2020– 

21 season should be approximately 

$0.19 per pound of tart cherries. 

According to NASS statistics, this price 

is the average of the past three years. 

Therefore, the estimated assessment 

revenue for the 2020–21 crop year as a 

percentage of total grower revenue 

would be approximately 3.0 percent. 

This proposed rule would not 

increase the assessment obligation 

imposed on handlers. Assessments are 

applied uniformly on all handlers, and 

some of the costs may be passed on to 

producers. However, these costs would 

be offset by the benefits derived by the 

operation of the marketing order. 

The Board’s meeting was widely 

publicized throughout the tart cherry 

industry. All interested persons were 

invited to attend the meeting and 

participate in Board deliberations on all 

issues. Like all Board meetings, the 

September 10, 2020, meeting was a 

public meeting, and all entities, both 

large and small, were able to express 

views on this issue. Finally, interested 

persons are invited to submit comments 

on this proposed rule, including the 

regulatory and informational impacts of 

this action on small businesses. 

In accordance with the Paperwork 

Reduction Act of 1995 (44 U.S.C. 

Chapter 35), the Order’s information 

collection requirements have been 

previously approved by the OMB and 

assigned OMB No. 0581–0177, Tart 

Cherries Grown in the States of 

Michigan, New York, Pennsylvania, 

Oregon, Utah, Washington, and 

Wisconsin. No changes in those 

requirements would be necessary as a 

result of this proposed rule. Should any 

changes become necessary, they would 

be submitted to OMB for approval. 

This proposed rule would not impose 

any additional reporting or 

recordkeeping requirements on either 

small or large tart cherry handlers. As 

with all Federal marketing order 

programs, reports and forms are 

periodically reviewed to reduce 

information requirements and 

duplication by industry and public 

sector agencies. 

AMS is committed to complying with 

the E-Government Act, to promote the 

use of the internet and other 

information technologies to provide 

increased opportunities for citizen 

access to Government information and 

services, and for other purposes. 

USDA has not identified any relevant 

Federal rules that duplicate, overlap, or 

conflict with this proposed rule. 

A small business guide on complying 

with fruit, vegetable, and specialty crop 

marketing agreements and orders may 

be viewed at: https://

www.ams.usda.gov/rules-regulations/ 

moa/small-businesses. Any questions 

about the compliance guide should be 

sent to Richard Lower at the previously 

mentioned address in the FOR FURTHER

INFORMATION CONTACT section. 

A 30-day comment period is provided 

to allow interested persons to respond 

to this proposed rule. 

List of Subjects in 7 CFR Part 930 

Marketing agreements, Reporting and 

recordkeeping requirements, Tart 

cherries. 

For the reasons set forth in the 

preamble, 7 CFR part 930 is proposed to 

be amended as follows: 

PART 930—TART CHERRIES GROWN 

IN THE STATES OF MICHIGAN, NEW 

YORK, PENNSYLVANIA, OREGON, 

UTAH, WASHINGTON, AND 

WISCONSIN 

■ 1. The authority citation for 7 CFR 

part 930 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. Section 930.200 is revised to read 

as follows: 

§ 930.200 Assessment rate. 

On and after October 1, 2020, the 

assessment rate imposed on handlers 

shall be $0.00575 per pound of tart 

cherries grown in the production area 

and utilized in the production of tart 

cherry products. Included in this rate is 

$0.00275 per pound of tart cherries to 

cover the cost of the research and 

promotion program and $0.003 per 

pound of tart cherries to cover 

administrative expenses. 

Bruce Summers, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. 2020–27563 Filed 12–15–20; 8:45 am] 

BILLING CODE P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2020–1132; Project 

Identifier MCAI–2020–01386–R] 

RIN 2120–AA64 

Airworthiness Directives; Airbus 

Helicopters 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Notice of proposed rulemaking 

(NPRM). 

SUMMARY: The FAA proposes to 

supersede Airworthiness Directive (AD) 

2018–15–02, which applies to certain 

Airbus Helicopters Model AS350B, 

AS350B1, AS350B2, AS350B3, 

AS350BA, AS355E, AS355F, AS355F1, 

AS355F2, AS355N, and AS355NP 

helicopters. AD 2018–15–02 requires 

repetitively inspecting the tail rotor (TR) 

pitch rod for a damaged elastomeric ball 

joint, and corrective action if necessary. 

Since the FAA issued AD 2018–15–02, 

the FAA determined that the 

manufacturer had developed improved 

inspection procedures and identified 

conditions that would allow the 

repetitive inspection intervals specified 

in AD 2018–15–02 to be extended to 

correspond with the intervals for the 

inspection of the TR pitch rod specified 

in the airworthiness limitation section 

of the applicable helicopter 

maintenance manual. This proposed AD 

would retain the requirements of AD 

2018–15–02 and allow the repetitive 

inspection interval to be extended under 

certain conditions, as specified in a 

European Union Aviation Safety Agency 

(EASA) AD, which is proposed for 

incorporation by reference. The FAA is 

proposing this AD to address the unsafe 

condition on these products. 

DATES: The FAA must receive comments 

on this proposed AD by February 1, 

2021. 

ADDRESSES: You may send comments, 

using the procedures found in 14 CFR 

11.43 and 11.45, by any of the following 

methods: 


khammond on DSKJM1Z7X2PROD with PROPOSALS