This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents. Prices of

new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

46185 

Vol. 76, No. 148 

Tuesday, August 2, 2011 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 1217 

[Document Number AMS–FV–10–0015; FR] 

RIN 0581–AD03 

Softwood Lumber Research, 

Promotion, Consumer Education and 

Industry Information Order 

AGENCY: Agricultural Marketing Service. 

ACTION: Final rule. 

SUMMARY: This rule establishes a 

Softwood Lumber Research, Promotion, 

Consumer Education and Industry 

Information Order (Order). Softwood 

lumber is used in products like flooring, 

siding and framing. The program will be 

financed by an assessment on softwood 

lumber domestic manufacturers and 

importers and will be administered by 

a board of industry members selected by 

the Secretary of Agriculture (Secretary). 

The initial assessment rate will be $0.35 

per thousand board feet of softwood 

lumber shipped within or imported to 

the United States. The purpose of the 

program is to strengthen the position of 

softwood lumber in the marketplace, 

maintain and expand markets for 

softwood lumber, and develop new uses 

for softwood lumber within the United 

States. The U.S. Department of 

Agriculture (USDA) conducted a 

referendum among eligible domestic 

softwood lumber manufacturers and 

importers from May 23 through June 10, 

2011. Sixty-seven percent of those 

voting in the referendum representing 

80 percent of the volume of softwood 

lumber represented in the referendum 

favored implementation of the program. 

DATES: Effective August 3, 2011. 

Collection of assessments (§§ 1217.52 

and 1217.53) and appropriate reporting 

and recordkeeping (§§ 1217.70 and 

1217.71) will begin January 1, 2012. 

FOR FURTHER INFORMATION CONTACT: 

Maureen T. Pello, Marketing Specialist, 

Research and Promotion Branch, Fruit 

and Vegetable Programs, AMS, USDA, 

P.O. Box 831, Beavercreek, Oregon 

97004; telephone: (503) 632–8848; 

facsimile (503) 632–8852; or electronic 

mail: Maureen.Pello@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This rule 

is issued pursuant to the Commodity 

Promotion, Research, and Information 

Act of 1996 (1996 Act) (7 U.S.C. 7411– 

7425). 

As part of this rulemaking process, a 

proposed rule was published in the 

Federal Register on October 1, 2010 (75 

FR 61002). That rule provided for a 60- 

day comment period which ended on 

November 30, 2010. Fifty-five comments 

were received. The comments were 

addressed in a second proposed rule 

and referendum order that was 

published in the Federal Register on 

April 22, 2011 (78 FR 22757). A final 

rule prescribing referendum procedures 

was also published in the Federal 

Register on April 22, 2011 (76 FR 

22752). 

Domestic manufacturers and 

importers who manufactured and 

shipped or imported 15 million board 

feet or more of softwood lumber during 

the representative period January 1 

through December 31, 2010, were 

eligible to vote in the referendum held 

from May 23 through June 10, 2011. 

Sixty-seven percent of those voting in 

the referendum representing 80 percent 

of the volume represented in the 

referendum approved implementation 

of the program. The referendum was 

conducted by mail ballot. 

Executive Order 12866 

This rule has been determined to be 

not significant for purposes of Executive 

Order 12866 and therefore has not been 

reviewed by the Office of Management 

and Budget (OMB). 

Executive Order 12988 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. It is not intended to have 

retroactive effect. Section 524 of the 

1996 Act provides that it shall not affect 

or preempt any other Federal or State 

law authorizing promotion or research 

relating to an agricultural commodity. 

Under section 519 of the 1996 Act, a 

person subject to an order may file a 

written petition with USDA stating that 

an order, any provision of an order, or 

any obligation imposed in connection 

with an order, is not established in 

accordance with the law, and request a 

modification of an order or an 

exemption from an order. Any petition 

filed challenging an order, any 

provision of an order, or any obligation 

imposed in connection with an order, 

shall be filed within two years after the 

effective date of an order, provision, or 

obligation subject to challenge in the 

petition. The petitioner will have the 

opportunity for a hearing on the 

petition. Thereafter, USDA will issue a 

ruling on the petition. The 1996 Act 

provides that the district court of the 

United States for any district in which 

the petitioner resides or conducts 

business shall have the jurisdiction to 

review a final ruling on the petition, if 

the petitioner files a complaint for that 

purpose not later than 20 days after the 

date of the entry of USDA’s final ruling. 

Background 

This rule establishes an industryfunded research, promotion, and 

information program for softwood 

lumber. Softwood lumber is used in 

products like flooring, siding and 

framing. The program will be financed 

by an assessment on softwood lumber 

domestic manufacturers and importers 

and will be administered by a board of 

industry members selected by the 

Secretary. The initial assessment rate is 

$0.35 per thousand board feet of 

softwood lumber shipped within or 

imported to the United States. Entities 

that domestically manufacture and ship 

or import less than 15 million board feet 

per fiscal year will be exempt from the 

payment of assessments. Additionally, 

assessed entities will not pay 

assessments on the first 15 million 

board feet of softwood lumber shipped 

domestically or imported during the 

year. Exports from the United States 

will also be exempt from assessments. 

The purpose of the program is to 

strengthen the position of softwood 

lumber in the marketplace, maintain 

and expand markets for softwood 

lumber, and develop new uses for 

softwood lumber within the United 

States. The proposal was submitted to 

USDA by the Blue Ribbon Commission 

(BRC), a committee of 21 chief executive 

officers and heads of businesses that 

domestically manufacture and import 

softwood lumber. 


jlentini on DSK4TPTVN1PROD with RULES
46186 Federal Register / Vol. 76, No. 148 / Tuesday, August 2, 2011 / Rules and Regulations 

1Spelter, H., D. McKeever, D. Toth, Profile 2009: 

Softwood Sawmills in the United States, USDA, 

p. 7. 

2Micklewright, J.T., Wood preservation statistics, 

American Wood Preservers Assocation, p. 25. 

3Production data was compiled by Henry Spelter 

of Wood Futures Insight and Forest Economic 

Advisors. 

4Western Wood Products Association, 2008 

Statistical Yearbook, p. 32. 

5U.S. Census Bureau, 2009, Construction, 

http://www.census.gov/mcd/. 

6Spelter, McKeever and Toth, Profile 2009, 

p. 2–5. 

Authority in 1996 Act 

The Order is authorized under the 

1996 Act which authorizes USDA to 

establish agricultural commodity 

research and promotion orders which 

may include a combination of 

promotion, research, industry 

information, and consumer information 

activities funded by mandatory 

assessments. These programs are 

designed to maintain and expand 

markets and uses for agricultural 

commodities. As defined under section 

513(1)(D) of the 1996 Act, agricultural 

commodities include the products of 

forestry, which includes softwood 

lumber. 

The 1996 Act provides for a number 

of optional provisions that allow the 

tailoring of orders for different 

commodities. Section 516 of the 1996 

Act provides permissive terms for 

orders, and other sections provide for 

alternatives. For example, section 514 of 

the 1996 Act provides for orders 

applicable to (1) producers, (2) first 

handlers and others in the marketing 

chain as appropriate, and (3) importers 

(if imports are subject to assessments). 

Section 516 states that an order may 

include an exemption of de minimis 

quantities of an agricultural commodity; 

different payment and reporting 

schedules; coverage of research, 

promotion, and information activities to 

expand, improve, or make more efficient 

the marketing or use of an agricultural 

commodity in both domestic and 

foreign markets; provision for reserve 

funds; provision for credits for generic 

and branded activities; and assessment 

of imports. 

In addition, section 518 of the 1996 

Act provides for referenda to ascertain 

approval of an order to be conducted 

either prior to its going into effect or 

within three years after assessments first 

begin under the order. An order also 

may provide for its approval in a 

referendum based upon different voting 

patterns. Section 515 provides for 

establishment of a board or council from 

among producers, first handlers and 

others in the marketing chain as 

appropriate, and importers, if imports 

are subject to assessment. 

Industry Background 

The softwood lumber industry is 

comprised of sawmills that make 

products from softwood trees. 

Softwoods include the botanical group 

of trees that have needle-like or scalelike leaves, or conifers. Softwood 

lumber includes certain products 

manufactured from softwoods (or 

coniferous trees). Softwood lumber is 

used in products like flooring, siding, 

and framing. 

Softwood lumber sizes are identified 

by the thickness and width of the board 

when it is first cut from the log. This is 

known as ‘‘rough cut’’ when the wood 

is still green and wet. Once the wood 

dries, it shrinks. After the wood dries, 

the surface of the board is smoothed to 

make the wood a uniform size. This is 

known as ‘‘planing’’ the wood. Once 

planed, the wood is considered 

finished. In the industry, the term 

nominal is used to describe the size of 

the rough cut board, prior to finishing. 

For example, a 2 x 4 board is a nominal 

size. The actual size of a 2 x 4 board is 

1.5 inches in thickness by 3.5 inches in 

width. The length of the board is 

typically the actual length. Usually 

there is a 1⁄2 inch difference in 

measurements over 2 inches and 1⁄4 inch 

difference in measurements less than 2 

inches. For purposes of the Order and 

the tables in this rule, nominal sizes are 

used. One nominal board foot is a unit 

of measurement of softwood lumber 

represented by a board 12 inches long, 

12 inches wide, and 1 inch thick or its 

cubic equivalent. A board foot 

calculation for softwood lumber 1 inch 

or more in thickness is based on its 

nominal thickness and width by the 

actual length. Softwood lumber with a 

nominal thickness of less than 1 inch is 

calculated as 1 inch. 

Regional U.S. Timber Production 1

According to USDA’s Forest Service, 

the main species of softwoods in the 

southern United States are pines that 

grow fast and can be sold for lumber in 

25 to 30 years. Southern pines are often 

treated with preservatives. About a third 

of the region’s lumber is sold to treaters 

for further processing (i.e., apply 

preservatives).2

Most of the northern U.S. softwood 

lumber industry is in Maine where the 

predominant species are white spruce 

and balsam fir. These trees are typically 

used for light framing such as wall 

studs. Second growths of red pine 

planted in the 1930s and later have been 

harvested by a few firms in the lake 

states. Red pine is also easy to treat and 

much of it is processed. White pine 

trees are also prevalent in the northern 

United States. They are used for 

paneling, millwork, and joinery. 

Millwork includes woodwork that has 

been made at a mill, and joinery is the 

trade of constructing articles by joining 

together pieces of wood. 

The bulk of timber production in the 

western United States is on the coast of 

the Pacific Northwest. Douglas fir and 

hemlock trees dominate while farther 

south in northern California, redwood 

trees, suitable for outdoor structures like 

fences, siding and decks, are common. 

East of these regions, ponderosa pine 

dominates and is used for millwork and 

joinery. Northern Idaho and Montana 

contain lodgepole pine and other 

species suitable for light framing. 

U.S. Softwood Lumber Output by 

Region 3

For 2008–2009 (most recent data 

available to USDA), total output 

(production) of softwood lumber by U.S. 

sawmills averaged about 24.5 billion 

board feet annually. Of the 24.5 billion 

board feet, 11.7 billion board feet were 

from the U.S. South, 11.3 billion board 

feet were from the U.S. West, and 2.4 

billion board feet were from the 

Northeast and Lake States. Data for the 

western states is from the Western 

Wood Products Association 4 and data 

for the other two regions is from the 

U.S. Census Bureau.5

Softwood Lumber Markets 6

The residential market is the largest 

consumer of softwood lumber in the 

United States. This includes single and 

multifamily homes, mobile homes, and 

remodeling. The residential market 

accounted for 75 percent of the total 

U.S. softwood lumber market in 2006 

and 63 percent of the market in 2009. 

Table 1 below shows this data from 

2003 through 2009. 


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7Spelter, McKeever and Toth, Profile 2009, p. 15. 

8 Ibid. 

9http://www.fas.usda.gov/gats; accessed 3/12/11. 10Spelter, McKeever and Toth, Profile 2009, 

p. 5–6. 

TABLE 1—U.S. SOFTWOOD LUMBER MARKETS FROM 2003–2009 VOLUME

[Billion board feet] 

Single family homes Multi-family 

homes 

Mobile 

homes 

Residential 

remodeling 

Non-residential, buildings Non-residential, other Industrial and 

other Total U.S. 

2003 .............................................. 20.2 1.7 1.1 19.3 3.6 0.6 10.2 56.7 

2004 .............................................. 22.2 1.8 1.1 20.3 3.9 0.5 11.1 60.8 

2005 .............................................. 24.5 1.9 1.2 20.9 3.8 0.6 11.7 64.6 

2006 .............................................. 21.3 1.9 0.9 21.4 3.6 0.6 11.3 61.0 

2007 .............................................. 14.9 1.7 0.8 19.7 4.0 0.6 11.4 53.1 

2008 .............................................. 8.4 1.4 0.6 17.5 3.9 0.6 9.6 42.0 

2009 .............................................. 5.3 0.7 0.4 14.2 3.6 0.6 7.8 32.6 

Shares (percent) 

2003 .............................................. 36 3 2 34 6 1 18 ........................

2004 .............................................. 36 3 2 33 6 1 18 ........................

2005 .............................................. 38 3 2 32 6 1 18 ........................

2006 .............................................. 35 3 2 35 6 1 18 ........................

2007 .............................................. 28 3 1 37 8 1 21 ........................

2008 .............................................. 20 3 1 42 9 1 23 ........................

2009 .............................................. 16 2 1 44 11 2 24 ........................

During normal economic conditions, 

single family homes comprise the 

largest share of the softwood lumber 

market in the United States. Single 

family home use rose from 20.2 billion 

board feet in 2003 to 24.5 billion board 

feet in 2005 and fell to 5.3 billion board 

feet in 2009. Single family homes 

comprised 38 percent of the market for 

softwood lumber in 2005 and 16 percent 

of the market by 2009. 

Home building is cyclical in nature 

(follows a pattern of highs and lows) as 

compared to other end uses for 

softwood lumber. Residential 

remodeling and other uses experienced 

downturns between 2006 and 2009, but 

less severe than the market for single 

family homes. Softwood lumber used 

for residential remodeling fell from 21.4 

billion board feet in 2006 to 14.2 billion 

board feet in 2009. As a percentage of 

softwood lumber market share, 

residential remodeling rose from 35 

percent in 2006 to 44 percent in 2009. 

Export Markets7

Export markets are another outlet for 

softwood lumber. Two decades ago, U.S. 

exports were about seven times greater 

than they were in recent years, but a 

strong U.S. dollar from the mid-1990s 

onward helped to reduce exports. 

Additionally, different size and grade 

standards for softwood lumber in export 

markets complicate production when 

log sizes have to be converted from 

imperial units (feet) to metric (meters). 

Most manufacturers have thus focused 

on North American sales. However, in 

slow periods such as in recent years, 

efforts have been made to supply export 

markets to the extent possible. 

Competition 8

Softwood lumber competes with 

several alternative products. Steel and 

concrete dominate larger residential and 

nonresidential projects. Brick, concrete, 

and vinyl are often used in low-rise 

residential and nonresidential 

buildings. Within the last decade, woodplastic composite lumber has become 

popular for outdoor decking, railing, 

trim, and fencing. Other wood-based 

products such as laminated veneer are 

becoming more popular in place of 

softwood lumber. 

Imports 

According to U.S. Department of 

Commerce, Census Bureau, Foreign 

Trade Statistics data (Census) 9, imports 

of softwood lumber from 2008 through 

2010 averaged about 10.2 billion board 

feet annually. During those years, 

imports from Canada averaged 9.6 

billion board feet annually, comprising 

about 94 percent of total imports; 

imports from western Europe averaged 

224 million board feet annually, 

comprising about 2.2 percent of total 

imports; and imports from Chile 

averaged 174 million board feet 

annually, comprising about 1.8 percent 

of total imports. Imports from other 

countries accounted for the remaining 2 

percent of total imports for 2008 

through 2010. 

Price and Cost Trends 10

Prices in the lumber industry can 

change rapidly in response to shifts in 

demand or supply. Prices are set 

competitively with many buyers and 

sellers bidding in a business that tends 

to be cyclical in nature. As shown in 

Table 2 below, revenue for the State of 

Oregon per thousand board feet was 

about $309 in 2003, rose to $420 in 

2004, and fell to $219 in 2008. In 

comparison, revenue for the State of 

Georgia per thousand board feet was 

about $323 in 2003, rose to $418 in 

2005, and fell to $262 in 2008. 

TABLE 2—TYPICAL SAWMILL OPERATING COSTS 2003–2008 

Oregon Georgia 

Costs 

($ per thousand 

board feet) 

Revenue 

($ per thousand 

board feet) 

Costs 

($ per thousand 

board feet) 

Revenue 

($ per thousand 

board feet) 

2003 ................................................................................................. 295 309 311 323 

2004 ................................................................................................. 330 420 335 378 

2005 ................................................................................................. 349 370 349 418 

2006 ................................................................................................. 335 316 349 330 

2007 ................................................................................................. 297 260 300 269 


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11U.S. Department of Labor, Bureau of Labor 

Statistics, 2009, Employment cost index, 

Washington, DC, http://data.bls.gov/PDQ/ 

outside.jsp?survey=ci. accessed 3/27/09. 

12Price data was obtained from Random Lengths 

Publications, Inc., and is a framing composite price 

that is designed as a broad measure of price 

movement in the lumber market (http:// 

www.randomlengths.com). 

TABLE 2—TYPICAL SAWMILL OPERATING COSTS 2003–2008—Continued 

Oregon Georgia 

Costs 

($ per thousand 

board feet) 

Revenue 

($ per thousand 

board feet) 

Costs 

($ per thousand 

board feet) 

Revenue 

($ per thousand 

board feet) 

2008 ................................................................................................. 238 219 328 262 

Several factors contributed to the 

revenue changes shown in Table 2. 

Some mills in the interior western 

United States were forced to close 

because of constraints on the 

availability of timber. A dispute with 

Canada over lumber imports that 

resulted in a 15 percent export levy for 

some U.S.-bound shipments and quotas 

on others after October 2006 impacted 

supply. 

Wood, labor, and operating costs also 

impact revenue. The cost of wood in the 

United States is negotiated between 

buyers and sellers. Companies often 

enter into long-term supply contracts 

with timber owners where the price is 

negotiated quarterly based on sales and 

market conditions. Labor is the second 

biggest component of lumber costs. 

According to the U.S. Department of 

Labor, U.S. wages have increased about 

3 percent per year during this decade.11

At the same time, labor productivity in 

sawmilling has increased by a like 

amount leaving unit labor costs flat. The 

other main cost for sawmills is energy, 

but most mills use their own residues to 

generate heat for their drying needs. 

This has lessened the impact of rising 

energy prices on sawmills. As shown in 

Table 2, total operating costs in Oregon 

per thousand board feet averaged $295 

in 2003, rose to $349 in 2005, and fell 

to $238 in 2008. In comparison, total 

operating costs in Georgia per thousand 

board feet averaged $311 in 2003, rose 

to $349 in 2005 and 2006, and fell to 

$328 in 2008. 

Need for a Program 

The softwood lumber industry is 

experiencing one of the worst markets 

in history. The collapse of the housing 

market caused prices to fall from $404 

per thousand board feet in 2004 to $222 

per thousand board feet in 2009. Prices 

rose slightly in 2010 to $284 per 

thousand board feet.12 Competition 

from other building products like 

cement and vinyl has also helped to 

reduce demand for softwood lumber. 

Additionally, at the request of the 

U.S. and Canadian governments, the 

U.S. Endowment for Forestry and 

Communities (Endowment) and the 

Binational Softwood Lumber Council 

(BSLC) were formed in 2006 in 

accordance with the 2006 Softwood 

Lumber Agreement. The Endowment is 

a non-profit organization that works 

with public and private sectors to 

advance the interests of the forestry 

community. The Endowment conducted 

a study to assess the feasibility of a 

softwood lumber research and 

promotion program. In the past, the 

industry attempted voluntary efforts to 

promote forest products, but they were 

sporadic, underfunded, and narrowly 

targeted. These campaigns did not last 

long enough to succeed. The 

Endowment recommended to the 

industry that Canadian and U.S. 

companies pursue a shared vision and 

achieve broad agreement on creating a 

unified softwood lumber research and 

promotion program. In 2008, the 

Endowment held an industry meeting in 

Seattle, Washington, to discuss the 

merits of such a program and obtain 

industry feedback. 

As a result of the Endowment’s 

efforts, the BRC was subsequently 

formed to pursue an industry research 

and promotion program. The BRC is 

comprised of 21 members representing 

the United States and Canada. Funding 

and support for the BRC’s efforts come 

from the BSLC, a non-profit 

organization whose mission is to 

promote increased cooperation between 

the U.S. and Canadian softwood lumber 

industries and to strengthen and expand 

markets for softwood lumber products 

in both countries. The BRC submitted 

an initial proposal for a program to 

USDA in February 2010. 

As recommended by the BRC, the 

program will be financed by an 

assessment on softwood lumber 

domestic manufacturers and importers 

and administered by a board of industry 

members selected by the Secretary. The 

initial assessment rate will be $0.35 per 

thousand board feet shipped within or 

imported to the United States and can 

be increased up to a maximum of $0.50 

per thousand board feet. Entities that 

domestically ship or import less than 15 

million board feet will be exempt along 

with shipments exported outside of the 

United States. Assessed entities will not 

pay assessments on the first 15 million 

board feet shipped or imported. The 

purpose of the program is to strengthen 

the position of softwood lumber in the 

marketplace, maintain and expand 

markets for softwood lumber, and 

develop new uses for softwood lumber 

within the United States. A referendum 

was held among eligible domestic 

manufacturers and importers to 

determine whether they favored 

implementation of the program prior to 

it going into effect. Sixty-seven percent 

of those voting in the referendum 

representing 80 percent of the volume 

represented in the referendum approved 

implementation of the program. The 

specific provisions of the program are 

discussed below. 

Provisions of Program 

Pursuant to the 1996 Act, §§ 1217.1 

through 1217.30 of the Order define 

certain terms that will be used 

throughout the Order. Several of the 

terms are common to all research and 

promotion programs authorized under 

the 1996 Act while other terms are 

specific to the softwood lumber Order. 

Sections 1217.40 through 1217.47 of 

the Order detail the establishment and 

membership of the Softwood Lumber 

Board, nominations and appointments, 

the term of office, removal and 

vacancies, procedure, reimbursement 

and attendance, powers and duties, and 

prohibited activities. 

Sections 1217.50 through 1217.53 of 

the Order detail requirements regarding 

the Board’s budget and expenses, 

financial statements, assessments, and 

exemption from assessments. The 

Board’s programs and expenses shall be 

funded through assessments on 

manufacturers for the U.S. market, other 

income, and other funds available to the 

Board. The Order provides for an initial 

assessment rate of $0.35 per thousand 

board feet. Domestic manufacturers will 

pay assessments based on the volume of 

softwood lumber shipped within the 

United States and importers will pay 

assessments based on the volume of 


jlentini on DSK4TPTVN1PROD with RULES
Federal Register / Vol. 76, No. 148 / Tuesday, August 2, 2011 / Rules and Regulations 46189 

13Spelter, McKeever and Toth, Profile 2009, 

p. 15. 

14Percentages were obtained from the American 

Lumber Standard Committee, Inc. (ALSC). The 

ALSC administers an accreditation program for the 

grademarking of lumber produced under the 

American Softwood Lumber Standard (Voluntary 

Product Standard 20). 

15Spelter, McKeever and Toth, Profile 2009, 

p. 2–5. 

softwood lumber imported to the United 

States. 

Two years after the Order becomes 

effective and periodically thereafter, the 

Board shall review the assessment rate 

and, if appropriate, recommend a 

change in the rate. At least two-thirds of 

the Board members must favor a change 

in the assessment rate. The assessment 

rate can be no less than $0.35 per 

thousand board feet and no more than 

$0.50 per thousand board feet. Any 

change in the assessment rate within 

this range is subject to rulemaking by 

the Secretary. 

Domestic manufacturers must pay 

their assessments owed to the Board by 

the 30th calendar day of the month 

following the end of the quarter in 

which the softwood lumber was 

shipped. Importer assessments will be 

collected through Customs. 

The Order provides authority for the 

Board to impose a late payment charge 

and interest for assessments overdue to 

the Board by 60 calendar days. The late 

payment charge and rate of interest shall 

be prescribed in the Order’s regulations 

issued by the Secretary. 

The Order provides for four 

exemptions. First, manufacturers for the 

U.S. market who domestically ship or 

import less than 15 million board feet 

during a fiscal year are exempt from 

paying assessments. Domestic 

manufacturers and importers must 

apply to the Board for an exemption 

prior to the start of the fiscal year. The 

Board will issue, if deemed appropriate, 

a certificate of exemption to the eligible 

manufacturer for the U.S. market. Once 

approved, domestic manufacturers will 

not have to pay assessments to the 

Board for the applicable fiscal year. 

Approved importers must retain a copy 

of the certificate of exemption and may 

be requested to submit the certificate to 

Customs. USDA is working to develop 

a process whereby approved importers 

could submit a copy the exemption 

certificate to Customs so that Customs 

would not collect the assessment. 

However, the only available alternative 

at this time is for Customs to collect the 

assessment, and for the Board to refund 

such importers their assessments no 

later than 60 calendar days after receipt 

of such assessment by the Board. 

Section 1217.53(a)(2) in this final rule 

was modified to clarify that importers 

may be requested to submit a copy of 

the certificate of exemption to Customs. 

The second exemption under the 

Order is for manufacturers for the U.S. 

market who domestically ship or import 

more than 15 million board feet of 

softwood lumber annually. Domestic 

manufacturers will not pay assessments 

on their first 15 million board feet of 

softwood lumber shipped during the 

applicable fiscal year. Importers will 

receive a refund from the Board for the 

applicable assessments collected by 

Customs no later than 60 calendar days 

after receipt of such assessments by the 

Board. 

The third exemption under the Order 

is for exports of softwood lumber, and 

the fourth exemption is for organic 

lumber. 

Sections 1217.60 through 1217.62 of 

the Order details requirements regarding 

promotion, research and information 

programs, plans and projects authorized 

under the Order. 

Sections 1217.70 through 1217.72 

specify the reporting and recordkeeping 

requirements under the Order as well as 

requirements regarding confidentiality 

of information. 

Section 1217.81(a) of the Order 

specifies that the program will not go 

into effect unless it is approved by a 

majority of domestic manufacturers and 

importers voting in a referendum who 

also represent a majority of the volume 

of softwood lumber represented in the 

referendum who, during a 

representative period determined by the 

Secretary, were engaged in the domestic 

manufacturing or importation of 

softwood lumber into the United States. 

As previously mentioned, in a 

referendum held from May 23 through 

June 10, 2011, 67 percent of those voting 

in the referendum representing 80 

percent of the volume of softwood 

lumber represented in the referendum 

favored implementation of the program. 

Section 1217.81(b) of the Order 

specifies criteria for subsequent 

referenda. Under the Order, a 

referendum may be held to ascertain 

whether the program should continue, 

be amended, or be terminated. 

Section 1217.80 and §§ 1217.82 

through 1217.88 describe the rights of 

the Secretary; authorize the Secretary to 

suspend or terminate the Order when 

deemed appropriate; prescribe 

proceedings after termination; address 

personal liability, separability, and 

amendments; and provide OMB control 

numbers. These provisions are common 

to all research and promotion program 

authorized under the 1996 Act. 

Regulatory Flexibility Act Analysis 

In accordance with the Regulatory 

Flexibility Act (RFA) (5 U.S.C. 601– 

612), AMS is required to examine the 

impact of this rule on small entities. 

Accordingly, AMS has prepared this 

regulatory flexibility analysis. 

The purpose of the RFA is to fit 

regulatory actions to the scale of 

businesses subject to such actions so 

that small businesses will not be 

disproportionately burdened. The Small 

Business Administration defines, in 13 

CFR part 121, small agricultural 

producers as those having annual 

receipts of no more than $750,000 and 

small agricultural service firms 

(domestic manufacturers and importers) 

as those having annual receipts of no 

more than $7.0 million. 

According to USDA’s Forest Service, 

it is estimated that, between 2007 and 

2009, there were an average of 595 

domestic manufacturers of softwood 

lumber in the United States annually.13

This number represents separate 

business entities; one business entity 

may include multiple sawmills. Using 

an average price of $280 per thousand 

board feet, a domestic manufacturer 

who ships less than 25 million board 

feet per year would be considered a 

small entity. It is estimated that, 

between 2007 and 2009, about 363 

domestic manufacturers, or about 61 

percent,14 shipped less than 25 million 

board feet annually. 

Likewise, according to Customs data, 

it is estimated that, between 2007 and 

2009, there were about 883 importers of 

softwood lumber annually. About 798 

importers, or about 90 percent, imported 

less than $7.0 million worth of softwood 

lumber annually. Thus, the majority of 

domestic manufacturers and importers 

of softwood lumber may be considered 

small entities. 

Regarding value of the commodity, 

with domestic production averaging 

24.5 billion board feet (2008 and 2009), 

and using an average price for those 

years of $237 per thousand board feet,15

the average annual value for softwood 

lumber is about $5.8 billion. According 

to Customs data, the average annual 

value for softwood lumber imports for 

2008 and 2009 is about $3.1 billion. 

This rule establishes an industryfunded research, promotion, and 

information program for softwood 

lumber. Softwood lumber is used in 

products like flooring, siding and 

framing. The program will be financed 

by an assessment on softwood lumber 

domestic manufacturers and importers 

and administered by a board of industry 

members selected by the Secretary. The 

initial assessment rate will be $0.35 per 

thousand board feet shipped within or 

imported to the United States and may 


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46190 Federal Register / Vol. 76, No. 148 / Tuesday, August 2, 2011 / Rules and Regulations 

16Spelter, H.D. McKeever, M. Alderman, Profile 

2007: Softwood Sawmills in the United States and 

Canada, USDA, p. 10. 

be increased to $0.50 per thousand 

board feet. Entities that domestically 

ship or import less than 15 million 

board feet are exempt along with 

shipments exported outside of the 

United States. No entity will pay 

assessments on the first 15 million 

board feet domestically shipped or 

imported. The purpose of the program is 

to strengthen the position of softwood 

lumber in the marketplace, maintain 

and expand markets for softwood 

lumber, and develop new uses for 

softwood lumber within the United 

States. A referendum was held May 23 

through June 10, 2011, among eligible 

domestic manufacturers and importers 

to determine whether they favor 

implementation of the program prior to 

it going into effect. Sixty-seven percent 

of those voting in the referendum, 

representing 80 percent of the volume of 

softwood lumber represented in the 

referendum, favored implementation of 

the program. The program is authorized 

under the 1996 Act. 

Regarding the economic impact of the 

Order on affected entities, softwood 

lumber domestic manufacturers and 

importers will pay assessments to the 

Board. As previously mentioned, the 

initial assessment rate is $0.35 per 

thousand board feet shipped within or 

imported to the United States and may 

be increased to no more than $0.50 per 

thousand board feet. 

The Order provides for an exemption 

for domestic manufacturers and 

importers who domestically ship or 

import less than 15 million board feet 

annually. Of the 595 domestic 

manufacturers, it is estimated that about 

232, or 39 percent, ship less than 15 

million board feet per year and will thus 

be exempt from paying assessments 

under the Order. Of the 883 importers, 

it is estimated that about 780, or 88 

percent, import less than 15 million 

board feet per year and will also be 

exempt from paying assessments. Thus, 

about 363 domestic manufacturers and 

103 importers will pay assessments 

under the Order. It is estimated that if 

$17.5 million were collected in 

assessments ($0.35 per thousand board 

feet assessment rate with 50 billion 

board feet assessed), 25 percent, or 

about $4 million, will be paid by 

importers and 75 percent, or about $13 

million, will be paid by domestic 

manufacturers. 

Regarding the impact on the industry 

as a whole, the program is expected to 

grow markets for softwood lumber by 

stopping the erosion of market share in 

single family residential market, 

increasing the market share in multifamily residential construction, 

significantly increasing the use of 

softwood lumber in non-residential 

markets, and rebuilding softwood 

lumber’s share in the outdoor living 

market. The BRC estimates the longterm market growth opportunity in the 

non-residential market and the raised 

wood segment of the residential market 

is between 10 and 12 billion board feet. 

USDA’s Forest Service in a 2007 study 

estimated a more conservative potential 

growth at around 8 billion board feet.16

While the benefits of the program are 

difficult to quantify, the benefits are 

expected to outweigh the program’s 

costs. 

Regarding alternatives, the BRC 

considered various options in 

assessment rate and exemption levels. 

The BRC believes that $20 million in 

assessment income is an ideal threshold 

for an effective program that will help 

to improve the market for softwood 

lumber. Table 3 below shows the range 

in assessments projected at various 

industry shipment levels per year. 

TABLE 3—PROJECTED INCOME GENERATED AT VARIOUS ASSESSMENT RATES AND SHIPMENT LEVELS 1

Assessment options 

(per thousand board feet) 

Annual shipment levels 

(billion board feet) 

40 50 60 

$0.25 .............................................. $10 million .................................... $12.5 million ................................. $15 million. 

$0.35 .............................................. $14 million .................................... $17.5 million ................................. $21 million. 

$0.50 .............................................. $20 million .................................... $25 million .................................... $30 million. 

1Assumes no exemption. 

Regarding exemption levels, the BRC 

explored projected assessment income 

at exemption levels of 15, 20, and 30 

million board feet. With a 15 million 

board foot exemption, the BRC projected 

a deduction of 11.3 percent in 

assessment income. Table 4 below 

shows the BRC’s projected income 

levels at various assessment options in 

light of the 15 million board foot 

exemption. 

TABLE 4—PROJECTED INCOME GENERATED AT VARIOUS ASSESSMENT RATES AND SHIPMENT LEVELS 1

Assessment options 

(per thousand board feet) 

Annual shipment levels 

(billion board feet) 

40 50 60 

$0.25 .............................................. $8.9 million ................................... $11.1 million ................................. $13.3 million. 

$0.35 .............................................. $12.4 million ................................. $15.5 million ................................. $18.9 million. 

$0.50 .............................................. $17.7 million ................................. $22.2 million ................................. $26.6 million 

1Assumes 15 million board foot exemption. 

Ultimately the BRC concluded that an 

assessment rate range of $0.35 to a 

maximum of $0.50 per thousand board 

feet with an exemption threshold of 15 

million board feet was appropriate and 

would generate sufficient income to 

support an effective promotion program 

for softwood lumber. At an initial 

assessment rate of $0.35 per thousand 


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board feet, the BRC projects assessment 

income between $12.4 million and 

almost $19 million with shipment levels 

ranging from 40 to 60 billion board feet, 

respectively. 

The industry explored the merits of a 

voluntary promotion program. Over the 

years, the industry organized various 

public outreach, education and 

promotion campaigns funded through 

voluntary assessments. Although some 

were partially effective, none fully 

accomplished their objectives and the 

gains either disappeared quickly or 

eroded over time. 

This action imposes additional 

reporting and recordkeeping burden on 

domestic manufacturer and importers of 

softwood lumber. Domestic 

manufacturers and importers interested 

in serving on the Board must submit a 

nomination form to the Board indicating 

their desire to serve or nominating 

another industry member to serve on the 

Board. Interested persons may also 

submit a background statement 

outlining their qualifications to serve on 

the Board. Except for the initial Board 

nominations, domestic manufacturers 

and importers will have the opportunity 

to cast a ballot and vote for candidates 

to serve on the Board. Domestic 

manufacturer and importer nominees to 

the Board must submit a background 

form to the Secretary to ensure they are 

qualified to serve on the Board. 

Additionally, domestic manufacturers 

and importers who domestically ship or 

import less than 15 million board feet 

annually may submit a request to the 

Board for an exemption from paying 

assessments on this volume. Domestic 

manufacturers and importers will also 

be asked to submit a report regarding 

their shipments/imports that will 

accompany their assessments paid to 

the Board. Domestic manufacturers and 

importers who qualify as 100 percent 

organic under the NOP and are not a 

split operation may submit a request to 

the Board for an exemption from 

assessments. Importers may also request 

a refund of any assessments paid to 

Customs. 

Finally, domestic manufacturers and 

importer who participated in the 

referendum to vote on whether the 

Order should become effective 

completed a ballot for submission to the 

Secretary. These forms were submitted 

to the OMB and approved under OMB 

Control No. 0581–0265. Specific 

burdens for the forms are detailed later 

in this document in the section titled 

Paperwork Reduction Act. As with all 

Federal promotion programs, reports 

and forms are periodically reviewed to 

reduce information requirements and 

duplication by industry and public 

sector agencies. Finally, USDA has not 

identified any relevant Federal rules 

that duplicate, overlap, or conflict with 

this rule. 

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. 

Regarding outreach efforts, as 

previously mentioned, the Endowment 

conducted a study to assess the 

feasibility of a softwood lumber research 

and promotion program. According to 

the BRC, at the beginning of the study 

(early 2008), in-depth interviews were 

conducted among North American 

softwood lumber industry leaders to 

explore the level of interest in a generic 

promotion program to help grow the 

market for softwood lumber. The 

Endowment interviewed 35 companies, 

which included a cross section of 

various levels of size and ownership 

types within the softwood lumber 

industry. Of the 35 companies surveyed, 

86 percent by number representing 54 

percent of the volume favored exploring 

a mandatory promotion program for 

softwood lumber. 

In early 2009, the BRC was formed 

and began a comprehensive process to 

develop a program. According to the 

BRC, its membership is diverse and 

represents 44 percent of softwood 

lumber shipments within the U.S. 

market. Efforts were made to inform 

various associations throughout the 

country through presentations at their 

meetings. Articles and notices were also 

published in various newspapers and 

newsletters about the program. 

Paperwork Reduction Act 

In accordance with the Paperwork 

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

chapter 35), AMS requested approval of 

a new information collection and 

recordkeeping requirements for the 

softwood lumber program. 

Title: Advisory Committee or 

Research and Promotion Background 

Information. 

OMB Number for background form 

AD–755: (Approved under OMB No. 

0505–0001). 

Expiration Date of Approval: July 31, 

2012. 

Title: National Research, Promotion, 

and Consumer Information Programs. 

OMB Number: 0581–0265. 

Expiration Date of Approval: 3 years 

from approval date. 

Type of Request: New information 

collection for research and promotion 

programs. 

Abstract: The information collection 

requirements in the request are essential 

to carry out the intent of the 1996 Act. 

The information collection concerns a 

new, national research and promotion 

program for the softwood lumber 

industry. The program will be financed 

by an assessment on softwood lumber 

domestic manufacturers and importers 

and administered by a board of industry 

members selected by the Secretary. The 

program provides for an exemption for 

the first 15 million board feet of 

softwood lumber shipped by domestic 

manufacturers within the United States 

or imported into the United States 

during the year. A referendum was held 

May 23 through June 10, 2011, among 

eligible domestic manufacturers and 

importers to determine whether they 

favor implementation of the program 

prior to it going into effect. Sixty-seven 

percent of those voting in the 

referendum, representing 80 percent of 

the volume represented in the 

referendum, favored implementation of 

the program. The purpose of the 

program is to help build the market for 

softwood lumber. 

In summary, the information 

collection requirements under the 

program concern Board nominations, 

the collection of assessments, and 

referenda. For Board nominations, 

domestic manufacturers and importers 

interested in serving on the Board must 

submit a ‘‘Nomination Form’’ to the 

Board indicating their desire to serve or 

to nominate another industry member to 

serve on the Board. Interested persons 

may also submit a background statement 

outlining qualifications to serve on the 

Board. Except for the initial Board 

nominations, domestic manufacturers 

and importers will have the opportunity 

to submit a ‘‘Nomination Ballot’’ to the 

Board where they will vote for 

candidates to serve on the Board. 

Nominees must also submit a 

background information form, ‘‘AD– 

755,’’ to the Secretary to ensure they are 

qualified to serve on the Board. 

Regarding assessments, domestic 

manufacturers and importers who ship 

or import less than 15 million board feet 

annually may submit a request, 

‘‘Application for Exemption from 

Assessments,’’ to the Board for an 

exemption from paying assessments. 

Domestic manufacturers and importers 

must submit a ‘‘Shipment/Import 

Report’’ that will accompany their 

assessments paid to the Board and 

report the quantity of softwood lumber 

shipped domestically or imported 

during the applicable period, the 

quantity exported from the United 

States, the quantity for which 

assessments were paid, and the country 


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of export (for imports). Domestic 

manufacturers who ship less than 15 

million board feet annually and are 

exempt from paying assessments do not 

have to submit this report. Additionally, 

only importers who pay their 

assessments directly to the Board must 

submit this report. As previously 

mentioned, the majority of importer 

assessments will be collected by 

Customs. Customs will remit the funds 

to the Board and the other information 

will be available from Customs (i.e., 

country of export, quantity of softwood 

lumber imported). Finally, domestic 

manufacturers and importers who 

qualify as 100 percent organic under the 

NOP and are not a split operation may 

submit an ‘‘Organic Exemption Form’’ 

to the Board and request an exemption 

from assessments. Importers may also 

request a refund of any assessments 

paid to Customs. 

There will also be an additional 

burden on domestic manufacturers and 

importers voting in referenda. The 

referendum ballot, which represents the 

information collection requirement 

relating to referenda, was addressed in 

a final rule on referendum procedures 

which was published in the Federal 

Register on April 22, 2011 (76 FR 

22752). 

Information collection requirements 

that are included in this rule include: 

(1) Nomination Form 

Estimate of Burden: Public 

recordkeeping burden for this collection 

of information is estimated to average 

0.25 hour per application. 

Respondents: Domestic manufacturers 

and importers. 

Estimated Number of Respondents: 

50. 

Estimated Number of Responses per 

Respondent: 1. 

Estimated Total Annual Burden on 

Respondents: 12.5 hours. 

(2) Background Statement 

Estimate of Burden: Public 

recordkeeping burden for this collection 

of information is estimated to average 

0.25 hour per application. 

Respondents: Domestic manufacturers 

and importers. 

Estimated Number of Respondents: 

50. 

Estimated Number of Responses per 

Respondent: 1. 

Estimated Total Annual Burden on 

Respondents: 12.5 hours. 

(3) Nomination Ballot 

Estimate of Burden: Public 

recordkeeping burden for this collection 

of information is estimated to average 

0.25 hour per application. 

Respondents: Domestic manufacturers 

and importers. 

Estimated Number of Respondents: 

300. 

Estimated Number of Responses per 

Respondent: 1. 

Estimated Total Annual Burden on 

Respondents: 75 hours. 

(4) Background Information Form AD– 

755 (OMB Form No. 0505–0001) 

Estimate of Burden: Public reporting 

for this collection of information is 

estimated to average 0.5 hour per 

response for each Board nominee. 

Respondents: Domestic manufacturers 

and importers. 

Estimated number of Respondents: 13 

(38 for initial nominations to the Board, 

0 for the second year, and up to 13 

annually thereafter). 

Estimated number of Responses per 

Respondent: 1 every 3 years. (0.3) 

Estimated Total Annual Burden on 

Respondents: 19 hours for the initial 

nominations to the Board, 0 hours for 

the second year of operation, and up to 

6.5 hours annually thereafter. 

(5) Application for Exemption From 

Assessments 

Estimate of Burden: Public reporting 

burden for this collection of information 

is estimated to average 0.25 hour per 

domestic manufacturer or importer 

reporting on softwood lumber shipped 

domestically or imported. Upon 

approval of an application, domestic 

manufacturers and importers will 

receive exemption certification. 

Respondents: Domestic manufacturers 

(232) and importers (780) who ship 

domestically or import less than 15 

million board feet of softwood lumber 

annually. 

Estimated number of Respondents: 

1,012. 

Estimated number of Responses per 

Respondent: 1. 

Estimated Total Annual Burden on 

Respondents: 253 hours. 

(6) Shipment/Import Report 

Estimate of Burden: Public reporting 

burden for this collection of information 

is estimated to average 0.5 hour per 

domestic manufacturer or importer. 

Respondents: Domestic manufacturers 

who ship 15 million board feet or more 

annually (363) and importers who remit 

their assessments directly to the Board 

(assume 5 percent of 103 importers, or 

5). 

Estimated number of Respondents: 

368. 

Estimated number of Responses per 

Respondent: 4. 

Estimated Total Annual Burden on 

Respondents: 736 hours. 

(7) Organic Exemption Form 

Estimate of Burden: Public 

recordkeeping burden for this collection 

of information is estimated to average 

0.5 hours per exemption form. 

Respondents: Organic domestic 

manufacturers and importers. 

Estimated Number of Respondents: 1. 

Estimated Number of Responses per 

Respondent: 1. 

Estimated Total Annual Burden on 

Respondents: 0.5 hour. 

(8) Refund of Assessments Paid on 

Organic Softwood Lumber 

Estimate of Burden: Public reporting 

burden for this collection of information 

is estimated to average 0.25 hour. 

Respondents: Organic importers. 

Estimated Number of Respondents: 1. 

Estimated Number of Responses per 

Respondent: 1. 

Estimated Total Annual Burden on 

Respondents: 0.25 hour. 

(9) A Requirement to Maintain Records 

Sufficient To Verify Reports Submitted 

Under the Order 

Estimate of Burden: Public 

recordkeeping burden for keeping this 

information is estimated to average 0.5 

hours per record keeper maintaining 

such records. 

Recordkeepers: Domestic 

manufacturers (595) and importers 

(883). 

Estimated number of recordkeepers: 

1,478. 

Estimated total recordkeeping hours: 

739 hours. 

As noted above, under the program, 

domestic manufacturers and importers 

will be required to pay assessments and 

file reports with and submit assessments 

to the Board (importers through 

Customs). While the Order imposes 

certain recordkeeping requirements on 

domestic manufacturers and importers, 

information required under the Order 

can be compiled from records currently 

maintained. Such records shall be 

retained for at least two years beyond 

the fiscal year of their applicability. 

An estimated 1,478 respondents will 

provide information to the Board (595 

domestic manufacturers and 883 

importers). The estimated cost of 

providing the information to the Board 

by respondents is $24,387. This total 

has been estimated by multiplying 739 

total hours required for reporting and 

recordkeeping by $33, the average mean 

hourly earnings of various occupations 

involved in keeping this information. 

Data for computation of this hourly rate 

was obtained from the U.S. Department 

of Labor Statistics. 

The Order’s provisions have been 

carefully reviewed, and every effort has 


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been made to minimize any unnecessary 

recordkeeping costs or requirements, 

including efforts to utilize information 

already submitted under other programs 

administered by USDA and other state 

programs. 

The forms require the minimum 

information necessary to effectively 

carry out the requirements of the 

program, and their use is necessary to 

fulfill the intent of the 1996 Act. Such 

information can be supplied without 

data processing equipment or outside 

technical expertise. In addition, there 

are no additional training requirements 

for individuals filling out reports and 

remitting assessments to the Board. The 

forms are simple, easy to understand, 

and place as small a burden as possible 

on the person required to file the 

information. 

Collecting information quarterly 

coincides with normal industry 

business practices. The timing and 

frequency of collecting information are 

intended to meet the needs of the 

industry while minimizing the amount 

of work necessary to fill out the required 

reports. The requirement to keep 

records for two years is consistent with 

normal industry practices. In addition, 

the information to be included on these 

forms is not available from other sources 

because such information relates 

specifically to individual domestic 

manufacturers and importers who are 

subject to the provisions of the 1996 

Act. Therefore, there is no practical 

method for collecting the required 

information without the use of these 

forms. 

In the October 1, 2010, proposed rule, 

comments were also invited on the 

information collection requirements 

prescribed in the Paperwork Reduction 

Act section of this rule. Specifically, 

comments were solicited on: (a) 

Whether the collection of information is 

necessary for the proper performance of 

functions of the Order and USDA’s 

oversight of the Order, including 

whether the information would have 

practical utility; (b) the accuracy of 

USDA’s estimate of the burden of the 

collection of information, including the 

validity of the methodology and 

assumptions used; (c) the accuracy of 

USDA’s estimate of the principal 

manufacturing areas in the United 

States for softwood lumber; (d) the 

accuracy of USDA’s estimate of the 

number of domestic manufacturers and 

importers of softwood lumber that will 

be covered under the program; (e) ways 

to enhance the quality, utility, and 

clarity of the information to be 

collected; and (f) ways to minimize the 

burden of the collection of information 

on those who are to respond, including 

the use of appropriate automated, 

electronic, mechanical, or other 

technological collection techniques or 

other forms of information technology. 

No comments were received regarding 

information collection. 

As previously mentioned, the 

Department conducted a referendum 

among domestic manufacturers and 

importers of softwood lumber from May 

23 through June 10, 2011, to determine 

whether the program would become 

effective. The representative period for 

establishing voter eligibility was January 

1 through December 31, 2010. Domestic 

manufacturers and importers currently 

engaged in the business who 

manufactured and shipped within the 

United States/or imported to the United 

States 15 million board feet or more of 

softwood lumber during the 

representative period were eligible to 

vote. Sixty-seven percent of those voting 

in the referendum representing 80 

percent of the volume of softwood 

lumber represented in the referendum 

favored implementation of the program. 

After consideration of all relevant 

material presented, including the initial 

proposal, comments received, and the 

referendum results, it is found that the 

Softwood Lumber Research, Promotion, 

Consumer Education and Industry 

Information Order is consistent with 

and effectuates the purposes of the 1996 

Act. 

Pursuant to 5 U.S.C. 553, it is found 

that good cause exists for not 

postponing the effective date of this rule 

until 30 days after publication in the 

Federal Register because this rule was 

approved in a referendum of domestic 

manufacturers and importers and needs 

to be in effect as soon as possible so that 

USDA can conduct nominations to seat 

the first Board prior to January 1, 2012, 

the date when the collection of 

assessments begins on the program. 

List of Subjects in 7 CFR Part 1217 

Administrative practice and 

procedure, Advertising, Consumer 

information, Marketing agreements, 

Softwood lumber promotion, Reporting 

and recordkeeping requirements. 

For the reasons set forth in the 

preamble, Title 7, Chapter XI of the 

Code of Federal Regulations is amended 

by adding part 1217 to read as follows: 

PART 1217—SOFTWOOD LUMBER 

RESEARCH, PROMOTION, 

CONSUMER EDUCATION AND 

INDUSTRY INFORMATION ORDER 

Subpart A—Softwood Lumber Research, 

Promotion, Consumer Education and 

Industry Information Order 

Definitions 

Sec. 

1217.1 Act. 

1217.2 Blue Ribbon Commission or BRC. 

1217.3 Board or Softwood Lumber Board. 

1217.4 Board foot. 

1217.5 Conflict of interest. 

1217.6 Customs or CBP. 

1217.7 Department or USDA. 

1217.8 Domestic manufacturer. 

1217.9 Export. 

1217.10 Fiscal period or year. 

1217.11 Importer. 

1217.12 Information. 

1217.13 Manufacture. 

1217.14 Manufacturer for the U.S. market. 

1217.15 Marketing. 

1217.16 Nominal size. 

1217.17 Order. 

1217.18 Part and subpart. 

1217.19 Person. 

1217.20 Planing. 

1217.21 Programs, plans and projects. 

1217.22 Promotion. 

1217.23 Research. 

1217.24 Secretary. 

1217.25 Softwood. 

1217.26 Softwood lumber. 

1217.27 State. 

1217.28 Suspend. 

1217.29 Terminate. 

1217.30 United States. 

Softwood Lumber Board 

1217.40 Establishment and membership. 

1217.41 Nominations and appointments. 

1217.42 Term of office. 

1217.43 Removal and vacancies. 

1217.44 Procedure. 

1217.45 Reimbursement and attendance. 

1217.46 Powers and duties. 

1217.47 Prohibited activities. 

Expenses and Assessments 

1217.50 Budget and expenses. 

1217.51 Financial statements. 

1217.52 Assessments. 

1217.53 Exemption from assessment. 

Promotion, Research and Information 

1217.60 Programs, plans and projects. 

1217.61 Independent evaluation. 

1217.62 Patents, copyrights, inventions, 

product formulations, and publications. 

Reports, Books, and Records 

1217.70 Reports. 

1217.71 Books and records. 

1217.72 Confidential treatment. 

Miscellaneous 

1217.80 Right of the Secretary. 

1217.81 Referenda. 

1217.82 Suspension or termination. 

1217.83 Proceedings after termination. 

1217.84 Effect of termination or 

amendment. 

1217.85 Personal liability. 


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1217.86 Separability. 

1217.87 Amendments. 

1217.88 OMB control numbers. 

Subpart B—[Reserved] 

Authority: 7 U.S.C. 7411–7425; 7 U.S.C. 

7401. 

Subpart A—Softwood Lumber 

Research, Promotion, Consumer 

Education, and Industry Information 

Order 

Definitions 

§ 1217.1 Act. 

Act means the Commodity Promotion, 

Research, and Information Act of 1996 

(7 U.S.C. 7411–7425), and any 

amendments thereto. 

§ 1217.2 Blue Ribbon Commission or BRC. 

Blue Ribbon Commission or BRC 

means the 21-member committee 

representing businesses that 

manufacture softwood lumber in the 

United States or import softwood 

lumber to the United States formed to 

pursue an industry research, promotion, 

and information program. 

§ 1217.3 Board or Softwood Lumber 

Board. 

Board or Softwood Lumber Board 

means the administrative body 

established pursuant to § 1217.40, or 

such other name as recommended by 

the Board and approved by the 

Department. 

§ 1217.4 Board foot. 

Board foot or BF means a unit of 

measurement of softwood lumber 

represented by a board 12-inches long, 

12-inches wide, and 1-inch thick or its 

cubic equivalent. A board foot 

calculation for softwood lumber 1 inch 

or more in thickness is based on its 

nominal thickness and width and the 

actual length. Softwood lumber with a 

nominal thickness of less than 1 inch is 

calculated as 1 inch. 

§ 1217.5 Conflict of interest. 

Conflict of interest means a situation 

in which a member or employee of the 

Board has a direct or indirect financial 

interest in a person who performs a 

service for, or enters into a contract 

with, the Board for anything of 

economic value. 

§ 1217.6 Customs or CBP. 

Customs or CBP means Customs and 

Border Protection, an agency of the 

United States Department of Homeland 

Security. 

§ 1217.7 Department or USDA. 

Department or USDA means the U.S. 

Department of Agriculture, or any 

officer or employee of the Department to 

whom authority has heretofore been 

delegated, or to whom authority may 

hereafter be delegated, to act in the 

Secretary’s stead. 

§ 1217.8 Domestic manufacturer. 

Domestic manufacturer means any 

person who is a first handler and is 

engaged in the manufacturing, sale and 

shipment of softwood lumber in the 

United States during a fiscal period and 

who owns, or shares in the ownership 

and risk of loss of manufacturing of 

softwood lumber or a person who is 

engaged in the business of 

manufacturing, or causes to be 

manufactured, sold and shipped such 

softwood lumber in the United States 

beyond personal use. This term does not 

include any person who remanufactures softwood lumber that has 

already been subject to assessment 

under this Order. 

§ 1217.9 Export. 

Export means to manufacture and 

ship softwood lumber from within the 

United States to locations outside of the 

United States. 

§ 1217.10 Fiscal period or year. 

Fiscal period or year means a calendar 

year from January 1 through December 

31, or such other period as 

recommended by the Board and 

approved by the Secretary. 

§ 1217.11 Importer. 

Importer means any person who 

imports softwood lumber from outside 

the United States for sale in the United 

States as a principal or as an agent, 

broker, or consignee of any person who 

manufactures softwood lumber outside 

the United States for sale in the United 

States, and who is listed in the import 

records as the importer of record for 

such softwood lumber. 

§ 1217.12 Information. 

Information means activities or 

programs designed to disseminate the 

results of research, new and existing 

marketing programs, new and existing 

marketing strategies, new and existing 

uses and applications, and to enhance 

the image of softwood lumber and the 

forests from which it comes. These 

include: 

(a) Consumer education, which means 

any action taken to provide information 

to, and broaden the understanding of, 

the general public regarding softwood 

lumber; and 

(b) Industry information, which 

means information and programs that 

would enhance the image of the 

softwood lumber industry. 

§ 1217.13 Manufacture. 

Manufacture means the process of 

transforming softwood logs into 

softwood lumber. 

§ 1217.14 Manufacturer for the U.S. 

market. 

Manufacturer for the U.S. market 

means domestic manufacturers and 

importers of softwood lumber as defined 

in this Order. 

§ 1217.15 Marketing. 

Marketing means the sale or other 

disposition of softwood lumber in 

interstate, foreign, or intrastate 

commerce. 

§ 1217.16 Nominal size. 

Nominal size means the size by which 

softwood lumber is known and sold in 

the marketplace that differs from actual 

size and is based on the thickness and 

width of a board when it is first cut from 

a log, or rough cut, prior to drying and 

planing. 

§ 1217.17 Order. 

Order means an order issued by the 

Secretary under section 514 of the Act 

that provides for a program of generic 

promotion, research, and information 

regarding agricultural commodities 

authorized under the Act. 

§ 1217.18 Part and subpart. 

Part means the Softwood Lumber 

Research, Promotion, Consumer 

Education, and Industry Information 

Order and all rules, regulations, and 

supplemental orders issued pursuant to 

the Act and the Order. The Order shall 

be a subpart of such part. 

§ 1217.19 Person. 

Person means any individual, group 

of individuals, partnership, company, 

corporation, association, affiliate, 

cooperative, or any other legal entity. 

§ 1217.20 Planing. 

Planing means the act of smoothing 

the surface of a board to make the wood 

a uniform size. 

§ 1217.21 Programs, plans, and projects. 

Programs, plans and projects mean 

those research, promotion and 

information programs, plans, or projects 

established pursuant to this Order. 

§ 1217.22 Promotion. 

Promotion means any action taken, 

including paid advertising, public 

relations and other communications, 

and promoting the results of research, 

that presents a favorable image of 

softwood lumber to the public and to 

any and all consumers and those who 

influence consumption of softwood 


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lumber with the intent of improving the 

perception, markets and competitive 

position of softwood lumber and 

stimulating sales of softwood lumber. 

§ 1217.23 Research. 

Research means any activity that 

advances the position of softwood 

lumber in the marketplace that includes 

any type of test, study, or analysis 

designed to advance the image, 

desirability, use, marketability, sales, 

product development, or quality of 

softwood lumber; new applications; 

improving softwood lumber’s position 

in building and fire codes; softwood 

lumber product testing and safety; and 

evaluating the effectiveness of market 

development and promotion efforts 

including life cycle studies, forestry, 

sustainable forest management, 

environmental preferrability, 

competitiveness, efficiency, pest and 

disease control, water quality and other 

management aspects of forestry and the 

forests from which softwood lumber 

originates. 

§ 1217.24 Secretary. 

Secretary means the Secretary of 

Agriculture of the United States, or any 

other officer or employee of the 

Department to whom authority has been 

delegated, or to whom authority may 

hereafter be delegated, to act in the 

Secretary’s stead. 

§ 1217.25 Softwood. 

Softwood means one of the botanical 

groups of trees that have needle-like or 

scale-like leaves, or conifers. 

§ 1217.26 Softwood lumber. 

Softwood lumber means and includes 

softwood lumber and products 

manufactured from softwood as 

described in section 804(a) of Title VIII 

of the Tariff Act of 1930, as amended 

(19 U.S.C. 1202–1683g), and as assessed 

under § 1217.52. 

§ 1217.27 State. 

State means any of the several 50 

States of the United States, the District 

of Columbia, the Commonwealth of 

Puerto Rico, and the territories and 

possessions of the United States. 

§ 1217.28 Suspend. 

Suspend means to issue a rule under 

section 553 of title 5 U.S.C. to 

temporarily prevent the operation of an 

order or part thereof during a particular 

period of time specified in the rule. 

§ 1217.29 Terminate. 

Terminate means to issue a rule under 

section 553 of title 5 U.S.C. to cancel 

permanently the operation of an order 

or part thereof beginning on a date 

certain specified in the rule. 

§ 1217.30 United States. 

United States means collectively the 

50 States, the District of Columbia, the 

Commonwealth of Puerto Rico and the 

territories and possessions of the United 

States. 

Softwood Lumber Board 

§ 1217.40 Establishment and membership. 

(a) Establishment of the Board. There 

is hereby established a Softwood 

Lumber Board to administer the terms 

and provisions of this Order and 

promote the use of softwood lumber. 

The Board shall be composed of 

manufacturers for the U.S. market who 

manufacture and domestically ship or 

import 15 million board feet or more of 

softwood lumber in the United States 

during a fiscal period. Seats on the 

Board shall be apportioned based on the 

volume of softwood lumber 

manufactured and shipped within the 

United States by domestic 

manufacturers and the volume of 

softwood lumber imported into the 

United States. 

(b) The Board shall be composed of 18 

or 19 members, depending upon 

whether an additional importer member 

is appointed to the Board, pursuant to 

paragraph (b)(2)(iii) of this section. The 

Board shall be established as follows: 

(1) Domestic manufacturers. Twelve 

members shall be domestic 

manufacturers from the following three 

regions: 

(i) Six members shall be from the U.S. 

South Region, which consists of the 

states of Alabama, Arkansas, Florida, 

Georgia, Louisiana, Mississippi, North 

Carolina, Oklahoma, South Carolina, 

Tennessee, and Texas; 

(ii) Five members shall be from the 

U.S. West Region, which consists of the 

states of Alaska, Arizona, California, 

Colorado, Hawaii, Idaho, Montana, 

Nevada, New Mexico, North Dakota, 

Oregon, South Dakota, Utah, 

Washington, and Wyoming; and 

(iii) One member shall be from the 

Northeast and lake States Region, which 

consists of the states of Connecticut, 

Delaware, Illinois, Indiana, Iowa, 

Kansas, Kentucky, Maine, Maryland, 

Massachusetts, Michigan, Minnesota, 

Missouri, Nebraska, New Hampshire, 

New Jersey, New York, Ohio, 

Pennsylvania, Rhode Island, Virginia, 

Vermont, West Virginia, Wisconsin, and 

all other parts of the United States not 

listed in paragraphs (b)(1)(i), (b)(1)(ii), or 

(b)(1)(iii) of this section. 

(2) Importers. Six members shall be 

importers who represent the following 

regions and import the majority of their 

softwood lumber from the respective 

region: 

(i) Four members shall import 

softwood lumber from the Canadian 

West Region, which consists of the 

provinces of British Columbia and 

Alberta; and 

(ii) Two members shall import 

softwood lumber from the Canadian 

East Region, which consists of the 

Canadian territories and all other 

Canadian provinces not listed in 

paragraph (b)(2)(i) of this section that 

import softwood lumber into the United 

States. 

(iii) If the Secretary, at the request of 

the Board or on his or her own, 

determines that it would be consistent 

with the provisions of the Act, the 

Secretary may appoint an additional 

importer to the Board to represent a 

region not otherwise specified in 

paragraphs (b)(2)(i) and (ii) of this 

section. Nominees would be solicited as 

prescribed in § 1217.41(b), or in the case 

of the Secretary acting on his or her own 

will be handled by the Secretary, and all 

the names of eligible candidates would 

be submitted to the Secretary for 

consideration. Such nominees must 

certify that the majority of their 

softwood lumber is imported from such 

region. In addition, representation for 

the region not otherwise specified in 

paragraphs (b)(2)(i) and (ii) of this 

section would be subject to the Board 

review and reapportionment provided 

for in paragraph (c) of this section. 

(c) In each five-year period, but not 

more frequently than once in each threeyear period, the Board shall: 

(1) Review, based on a three-year 

average, the geographical distribution of 

the volume of softwood lumber 

manufactured and shipped within the 

United States by domestic 

manufacturers and the volume of 

softwood lumber imported into the 

United States; and 

(2) If warranted, recommend to the 

Secretary the reapportionment of the 

Board membership to reflect changes in 

the geographical distribution of the 

volume of softwood lumber 

manufactured and shipped within the 

United States by domestic 

manufacturers and the volume of 

softwood lumber imported into the 

United States. The destination of 

volumes between regions also shall be 

considered. The number of Board 

members may also be changed. Any 

changes in Board composition shall be 

implemented by the Secretary through 

rulemaking. 

§ 1217.41 Nominations and appointments. 

(a) Initial nominations will be 

submitted to the Secretary by the Blue 


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Ribbon Commission. Before considering 

any nominations, the BRC shall 

publicize the nomination process, using 

trade press or other means it deems 

appropriate, and shall outreach to all 

known manufacturers for the U.S. 

market who domestically manufacture 

and/or import 15 million board feet or 

more of softwood lumber per fiscal year 

in order to generate nominees that 

reflect the different operations within 

the softwood lumber industry. The BRC 

may use regional caucuses, mail or other 

methods to elicit potential nominees. 

The BRC shall submit the nominations 

to the Secretary and recommend two 

nominees for each Board position 

specified in paragraphs (b)(1), (b)(2)(i) 

and (b)(2)(ii) of § 1217.40. All nominees 

solicited pursuant to § 1217.40(b)(2)(iii) 

shall be submitted to the Secretary 

through the BRC. From the nominations 

submitted by the BRC, the Secretary 

shall select the members of the Board. 

(b) Subsequent nominations shall be 

conducted as follows: 

(1) The Board shall outreach to all 

segments of the softwood lumber 

industry. Softwood lumber domestic 

manufacturers and importers may 

submit nominations to the Board. 

Subsequent nominees must 

domestically manufacture and/or import 

15 million board feet or more of 

softwood lumber per fiscal year; 

(2) Domestic manufacturers and 

importer nominees may provide the 

Board a short background statement 

outlining their qualifications to serve on 

the Board; 

(3) Nominees that are both a domestic 

manufacturer and an importer may seek 

nomination to the Board and vote in the 

nomination process as either a domestic 

manufacturer or an importer, but not 

both: Provided, That, such nominees 

who domestically manufacture the 

majority of their softwood lumber may 

seek nomination and vote as a domestic 

manufacturer, and such nominees who 

import the majority of their softwood 

lumber may seek nomination and vote 

as an importer. Such nominees must 

domestically manufacture and import 

15 million board feet or more of 

softwood lumber per fiscal year; 

(4) Domestic manufacturers who 

manufacture softwood lumber in more 

than one region may seek nomination 

only in the region in which they 

manufacture the majority of their 

softwood lumber. The names of 

domestic manufacturer nominees shall 

be placed on a ballot by region. The 

ballots along with the background 

statements shall be mailed to domestic 

manufacturers in each respective region 

for a vote. Domestic manufacturers who 

manufacture softwood lumber in more 

than one region may only vote in the 

region in which they manufacture the 

majority of their softwood lumber. The 

votes shall be tabulated for each region 

with the nominee receiving the highest 

number of votes at the top of the list in 

descending order by vote. The top two 

candidates for each position shall be 

submitted to the Secretary; 

(5) Importer nominees shall certify 

that the majority of their softwood 

lumber is imported from the respective 

region for which they are seeking to 

represent on the Board and shall 

provide documentation to verify this if 

requested by the Board. The names of 

importer nominees shall be placed on a 

ballot by region. The ballots along with 

the background statements shall be 

mailed to importers in each respective 

region for a vote. Importers who import 

softwood lumber from more than one 

region may only vote in the region from 

which they import the majority of their 

softwood lumber. The votes shall be 

tabulated for each region with the 

nominee receiving the highest number 

of votes at the top of the list in 

descending order by vote. The top two 

candidates for each position shall be 

submitted to the Secretary. 

(6) The Board must submit 

nominations to the Secretary at least six 

months before the new Board term 

begins. From the nominations submitted 

by the Board, the Secretary shall select 

the members of the Board; 

(7) No two members shall be 

employed by a single corporation, 

company, partnership, or any other legal 

entity; and 

(8) The Board may recommend to the 

Secretary modifications to its 

nomination procedures as it deems 

appropriate. Any such modifications 

shall be implemented through 

rulemaking by the Secretary. 

§ 1217.42 Term of office. 

(a) With the exception of the initial 

Board, each Board member will serve a 

three-year term or until the Secretary 

selects his or her successor. Each term 

of office shall begin on January 1 and 

end on December 31. No member may 

serve more than two consecutive terms, 

excluding any term of office less than 

three years. 

(b) For the initial board, the terms of 

Board members shall be staggered for 

two, three, and four years. 

Determination of which of the initial 

members shall serve a term of two, 

three, or four years shall be 

recommended to the Secretary by the 

Blue Ribbon Commission. 

§ 1217.43 Removal and vacancies. 

(a) In the event that any member of 

the Board ceases to work for or be 

affiliated with a domestic manufacturer 

or importer or ceases to do business in 

the region he or she represents, such 

position shall become vacant. 

(b) The Board may recommend to the 

Secretary that a member be removed 

from office if the member consistently 

refuses to perform his or her duties or 

engages in dishonest acts or willful 

misconduct. The Secretary may remove 

the member if he or she finds that the 

Board’s recommendation shows 

adequate cause. Further, without 

recommendation of the Board, a 

member may be removed by the 

Secretary upon showing of adequate 

cause, including the failure by a 

member to submit reports or remit 

assessments required under this part, if 

the Secretary determines that such 

member’s continued service would be 

detrimental to the achievement of the 

purposes of the Act. 

(c) If a position becomes vacant, 

nominations to fill the vacancy will be 

conducted using the nominations 

process set forth in this Order. A 

vacancy will not be required to be filled 

if the unexpired term is less than six 

months. 

§ 1217.44 Procedure. 

(a) A majority of the Board members 

(10) will constitute a quorum so long as 

at least three of the members present are 

importer members and six of the 

members present are domestic 

manufacturers. If participation by 

telephone or other means is permitted, 

members participating by such means 

shall count as present in determining 

quorum or other voting requirements set 

forth in this section. 

(b) All votes at meetings of the Board 

and executive committee will be cast in 

person or by electronic voting or other 

means as the Board and Secretary deem 

appropriate to allow members 

participating by telephone or other 

electronic means to cast votes. Voting by 

proxy will not be allowed. 

(c) Each member of the Board will be 

entitled to one vote on any matter put 

to the Board and the motion will carry 

if supported by 10 Board members, 

except for recommendations to change 

the assessment rate or to adopt a budget, 

both of which require affirmation by at 

least two-thirds (12 members for an 18 

member Board and 13 members for a 19 

member Board) of the Board members. 

If a Board has vacant positions, 

recommendations to change the 

assessment rate or to adopt a budget 

must pass by an affirmative vote of at 


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least two-thirds of the Board members, 

exclusive of the vacant seats. 

(d) The Board must give members and 

the Secretary timely notice of all Board, 

executive and committee meetings. 

(e) In lieu of voting at a properly 

convened meeting, and when, in the 

opinion of the Board’s chairperson, such 

action is considered necessary, the 

Board may take action by mail, 

telephone, electronic mail, facsimile, or 

any other means of communication. 

Any action taken under this procedure 

is valid only if: 

(1) All members and the Secretary are 

notified and the members are provided 

the opportunity to vote; 

(2) Ten (10) Board members vote in 

favor of the action (unless two-thirds 

vote of the Board members is required 

under the Order); and 

(3) All votes are promptly confirmed 

in writing and recorded in the Board 

minutes. 

§ 1217.45 Reimbursement and attendance. 

Board members will serve without 

compensation. Board members will be 

reimbursed for reasonable travel 

expenses, as approved by the Board, 

which they incur when performing 

Board business. 

§ 1217.46 Powers and duties. 

The Board shall have the following 

powers and duties: 

(a) To administer this Order in 

accordance with its terms and 

conditions and to collect assessments; 

(b) To develop and recommend to the 

Secretary for approval such bylaws as 

may be necessary for the functioning of 

the Board and such rules, regulations as 

may be necessary to administer the 

Order, including activities authorized to 

be carried out under the Order; 

(c) To meet, organize, and select from 

among its members a chairperson and, 

such other officers as may be necessary; 

(d) To create an executive committee 

of five members of the Board comprised 

of the chairperson and four other 

members elected by the Board. The 

duties of the executive committee shall 

be specified in bylaws that are 

recommended by the Board and 

approved by the Secretary; 

(e) To create other committees or 

subcommittees, which may include 

individuals other than Board members, 

as the Board deems necessary from its 

membership and other representatives it 

deems appropriate; 

(f) To employ or contract with such 

persons, other than the members, as it 

may deem necessary to assist the Board 

in carrying out its duties, and to 

determine the compensation and define 

the duties of each; 

(g) To notify manufacturers for the 

U.S. market of all Board meetings 

through press releases or other means 

and to give the Secretary the same 

notice of Board meetings, executive 

committee, and subcommittee meetings 

that is given to members in order that 

the Secretary’s representative(s) may 

attend such meetings, and to keep and 

report minutes of each meeting to the 

Secretary; 

(h) To develop and administer 

programs, plans, and projects and enter 

into contracts or agreements, which 

must be approved by the Secretary 

before becoming effective, for 

promotion, research, and information, 

including consumer and industry 

information, research and advertising 

designed to strengthen the softwood 

lumber industry’s position in the 

marketplace and to maintain, develop, 

and expand markets for softwood 

lumber. The payment of costs for such 

activities shall be with funds collected 

pursuant to the Order, including funds 

collected pursuant to § 1217.50(f). Each 

contract or agreement shall provide that: 

(1) The contractor or agreeing party 

shall develop and submit to the Board 

a program, plan, or project together with 

a budget that specifies the cost to be 

incurred to carry out the activity; 

(2) The contractor or agreeing party 

shall keep accurate records of all of its 

transactions and make periodic reports 

to the Board of activities conducted, 

submit accounting for funds received 

and expended, and make such other 

reports as the Secretary or Board may 

require; 

(3) The Secretary may audit the 

records of the contracting or agreeing 

party periodically; and 

(4) Any subcontractor who enters into 

a contract with a Board contractor and 

who receives or otherwise uses funds 

allocated by the Board shall be subject 

to the same provisions as the contractor. 

(i) To prepare and submit to the 

Secretary for approval 60 calendar days 

in advance of the beginning of a fiscal 

period, rates of assessment and a budget 

of the anticipated expenses to be 

incurred in the administration of the 

Order, including the probable cost of 

each promotion, research, and 

information activity proposed to be 

developed or carried out by the Board; 

(j) To borrow funds necessary for 

startup expenses of the Order; 

(k) To invest assessments collected 

and other funds received pursuant to 

the Order and use earnings from 

invested assessments to pay for 

activities carried out pursuant to the 

Order; 

(l) To recommend changes to the 

assessment rates as provided in this 

part; 

(m) To cause its books to be audited 

by a certified public accountant at the 

end of each fiscal period and at such 

other times as the Secretary may 

request, and to submit a report of each 

audit directly to the Secretary; 

(n) To periodically prepare and make 

public and to make available to 

manufacturers for the U.S. market 

reports of its activities and, at least once 

each fiscal period, to make public an 

accounting of funds received and 

expended; 

(o) To maintain minutes, books, and 

records and prepare and submit to the 

Secretary such reports from time to time 

as may be required for appropriate 

accounting with respect to the receipt 

and disbursement of funds entrusted to 

it, and to submit to the Secretary such 

information pertaining to this part or 

subpart as he or she may request; 

(p) To act as an intermediary between 

the Secretary and any manufacturer for 

the U.S. market; 

(q) To receive, investigate and report 

to the Secretary complaints of violations 

of the Order; and 

(r) To develop and recommend such 

rules and regulations to the Secretary for 

approval as may be necessary for the 

development and execution of plans or 

activities to effectuate the purposes of 

the Act. 

§ 1217.47 Prohibited activities. 

The Board may not engage in, and 

shall prohibit the employees and agents 

of the Board from engaging in: 

(a) Any action that would be a conflict 

of interest; 

(b) Using funds collected by the Board 

under the Order to undertake any action 

for the purpose of influencing 

legislation or governmental action or 

policy, by local, state, national, and 

foreign governments or subdivision 

thereof, other than recommending to the 

Secretary amendments to the Order; and 

(c) No program, plan or project 

including advertising shall be false or 

misleading or disparaging to another 

agricultural commodity. Softwood 

lumber of all geographic origins shall be 

treated equally. 

Expenses and Assessments 

§ 1217.50 Budget and expenses. 

(a) At least 60 calendar days prior to 

the beginning of each fiscal period, and 

as may be necessary thereafter, the 

Board shall prepare and submit to the 

Department a budget for the fiscal 

period covering its anticipated expenses 

and disbursements in administering this 

part. The budget for research, promotion 


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or information may not be implemented 

prior to approval by the Secretary. Each 

such budget shall include: 

(1) A statement of objectives and 

strategy for each program, plan, or 

project; 

(2) A summary of anticipated revenue, 

with comparative data for at least one 

preceding fiscal year, except for the 

initial budget; 

(3) A summary of proposed 

expenditures for each program, plan, or 

project; and 

(4) Staff and administrative expense 

breakdowns, with comparative data for 

at least one preceding fiscal year, except 

for the initial budget. 

(b) Each budget shall provide 

adequate funds to defray its proposed 

expenditures and to provide for a 

reserve as set forth in this Order. 

(c) Subject to this section, any 

amendment or addition to an approved 

budget must be approved by the 

Department, including shifting funds 

from one program, plan, or project to 

another. 

(d) The Board is authorized to incur 

such expenses, including provision for 

a reserve, as the Secretary finds 

reasonable and likely to be incurred by 

the Board for its maintenance and 

functioning, and to enable it to exercise 

its powers and perform its duties in 

accordance with the provisions of this 

subpart. Such expenses shall be paid 

from funds received by the Board. 

(e) With approval of the Department, 

the Board may borrow money for the 

payment of startup expenses subject to 

the same fiscal, budget, and audit 

controls as other funds of the Board. 

Any funds borrowed shall be expended 

only for startup costs and capital outlays 

and are limited to the first year of 

operation by the Board. 

(f) The Board may accept voluntary 

contributions, and is encouraged to seek 

other appropriate funding sources to 

carry out activities authorized by the 

Order. Such contributions shall be free 

from any encumbrances by the donor 

and the Board shall retain complete 

control of their use. The Board may 

receive funds from outside sources (i.e., 

Federal or State grants, Foreign 

Agricultural Service funds), with 

approval of the Secretary, for specific 

authorized projects. 

(g) The Board shall reimburse the 

Secretary for all expenses incurred by 

the Secretary in the implementation, 

administration, enforcement and 

supervision of the Order, including all 

referendum costs in connection with the 

Order. 

(h) For fiscal years beginning two 

years after the date the of the first Board 

meeting, the Board may not expend for 

administration, maintenance, and the 

functioning of the Board an amount that 

is greater than 8 percent of the 

assessment and other income received 

by and available to the Board for the 

fiscal year. For purposes of this 

limitation, reimbursements to the 

Secretary shall not be considered 

administrative costs. 

(i) The Board may establish an 

operating monetary reserve and may 

carry over to subsequent fiscal periods 

excess funds in any reserve so 

established: Provided, That, the funds in 

the reserve do not exceed one fiscal 

period’s budget of expenses. Subject to 

approval by the Secretary, such reserve 

funds may be used to defray any 

expenses authorized under this subpart. 

(j) Pending disbursement of 

assessments and all other revenue under 

a budget approved by the Secretary, the 

Board may invest assessments and all 

other revenues collected under this part 

in: 

(1) Obligations of the United States or 

any agency of the United States; 

(2) General obligations of any State or 

any political subdivision of a State; 

(3) Interest bearing accounts or 

certificates of deposit of financial 

institutions that are members of the 

Federal Reserve System; 

(4) Obligations fully guaranteed as to 

principal interest by the United States; 

or 

(5) Other investments as authorized 

by the Secretary. 

§ 1217.51 Financial statements. 

(a) The Board shall prepare and 

submit financial statements to the 

Department on a quarterly basis, or at 

any other time as requested by the 

Secretary. Each such financial statement 

shall include, but not be limited to, a 

balance sheet, income statement, and 

expense budget. The expense budget 

shall show expenditures during the time 

period covered by the report, year-todate expenditures, and the unexpended 

budget. 

(b) Each financial statement shall be 

submitted to the Department within 30 

calendar days after the end of the time 

period to which it applies. 

(c) The Board shall submit to the 

Department an annual financial 

statement within 90 calendar days after 

the end of the fiscal year to which it 

applies. 

§ 1217.52 Assessments. 

(a) The Board’s programs and 

expenses shall be paid by assessments 

on manufacturers for the U.S. market, 

other income of the Board, and other 

funds available to the Board. 

(b) Subject to the exemptions 

specified in § 1217.53, each 

manufacturer for the U.S. market shall 

pay an assessment to the Board at the 

rate of $0.35 per thousand board feet of 

softwood lumber except that no person 

shall pay an assessment on the first 15 

million board feet of softwood lumber 

otherwise subject to assessment in a 

fiscal year. Domestic manufacturers 

shall pay assessments based on the 

volume of softwood lumber shipped 

within the United States and importers 

shall pay assessments based on the 

volume of softwood lumber imported to 

the United States. 

(c) At least 24 months after the Order 

becomes effective and periodically 

thereafter, the Board shall review and 

may recommend to the Secretary, upon 

an affirmative vote by at least two-thirds 

of the Board members, a change in the 

assessment rate. In no event may the 

rate be less than $0.35 per thousand 

board feet nor more than $0.50 per 

thousand board feet. A change in the 

assessment rate is subject to rulemaking 

by the Secretary. 

(d) Domestic manufacturers shall 

remit to the Board the amount due no 

later than the 30th calendar day of the 

month following the end of the quarter 

in which the softwood lumber was 

shipped. 

(e) Domestic product that cannot be 

categorized in the Harmomized Tariff 

Schedule of the United States (HTSUS) 

numbers listed in paragraph (h) of this 

section if it were an import is not 

covered under this Order. 

(f) Softwood lumber originating in the 

United States that is exported to another 

country and shipped back to the United 

States is covered under this Order, 

provided that it can be categorized in 

the HTSUS numbers listed in paragraph 

(h) of this section. 

(g) Each importer of softwood lumber 

shall pay through Customs to the Board 

an assessment on softwood lumber 

imported into the United States as 

described in section 804(a) of Title VIII 

of the Tariff Act of 1930, as amended 

(19 U.S.C. 1202–1683g), provided that it 

can be categorized in the HTSUS 

numbers listed in paragraph (h) of this 

section. 

(h) The HTSUS categories and 

assessment rates on imported softwood 

lumber are listed in the table below. A 

factor shall be used to determine the 

equivalent volume of softwood lumber 

in thousand board feet. The factor used 

to convert one cubic meter to one 

thousand board feet is 0.423776001. 

Accordingly, the assessment rate per 

cubic meter is as follows. 


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Softwood lumber Assessment 

$/cubic meter 

4407.10.01 ............................ $0.1483 

4409.10.05 ............................ 0.1483 

4409.10.10 ............................ 0.1483 

4409.10.20 ............................ 0.1483 

4409.10.90 ............................ 0.1483 

4418.90.25 ............................ 0.1483 

(i) In the event that any HTSUS 

number subject to assessment is 

changed and such change is merely a 

replacement of a previous number and 

has no impact on the description of the 

softwood lumber involved, assessments 

will continue to be collected based on 

the new number. 

(j) If Customs does not collect an 

assessment from an importer, the 

importer is responsible for paying the 

assessment directly to the Board no later 

than the 30th calendar day of the month 

following the end of the quarter in 

which the softwood lumber was 

imported. 

(k) Articles brought into the United 

States temporarily and for which an 

exemption is claimed under subchapter 

XIII of chapter 98 of the HTSUS are not 

covered under this Order. If assessments 

are collected by Customs for these 

products, the importer may apply to the 

Board for a refund of assessments. 

(l) When a domestic manufacturer or 

importer fails to pay the assessment 

within 60 calendar days of the date it is 

due, the Board may impose a late 

payment charge and interest. The late 

payment charge and rate of interest shall 

be prescribed in regulations issued by 

the Secretary. All late assessments shall 

be subject to the specified late payment 

charge and interest. Persons failing to 

remit total assessments due in a timely 

manner may also be subject to actions 

under Federal debt collection 

procedures. 

(m) The Board may accept advance 

payment of assessments from any 

manufacturer for the U.S. market that 

will be credited toward any amount for 

which that person may become liable. 

The Board may not pay interest on any 

advance payment. 

(n) If the Board is not in place by the 

date the first assessments are to be 

collected, the Secretary shall receive 

assessments and shall pay such 

assessments and any interest earned to 

the Board when it is formed. 

§ 1217.53 Exemption from assessment. 

(a) Manufacturers for the U.S. market 

who domestically ship and/or import 

less than 15 million board feet annually. 

(1) Domestic manufacturers who ship 

less than 15 million board feet of 

softwood lumber within the United 

States in a fiscal year are exempt from 

paying assessments. Such 

manufacturers must apply to the Board, 

on a form provided by the Board, for a 

certificate of exemption prior to the start 

of the fiscal year. This is an annual 

exemption and domestic manufacturers 

must reapply each year. Such 

manufacturers shall certify that they 

will ship less than 15 million board feet 

of softwood lumber during the fiscal 

year for which the exemption is 

claimed. Upon receipt of an application 

for exemption, the Board shall 

determine whether an exemption may 

be granted. The Board may request past 

shipment data to support the exemption 

request. The Board will then issue, if 

deemed appropriate, a certificate of 

exemption to the eligible domestic 

manufacturer. It is the responsibility of 

the domestic manufacturer to retain a 

copy of the certificate of exemption. 

(2) Importers who import into the 

United States less than 15 million board 

feet of softwood lumber in a fiscal year 

are exempt from paying assessments. 

Such importers must apply to the Board, 

on a form provided by the Board, for a 

certificate of exemption prior to the start 

of the fiscal year. This is an annual 

exemption and importers must reapply 

each year. Such importers shall certify 

that they will import less than 15 

million board feet of softwood lumber 

during the fiscal year for which the 

exemption is claimed. Upon receipt of 

an application for exemption, the Board 

shall determine whether an exemption 

is granted. The Board may request past 

import data to support the exemption 

request. The Board will then issue, if 

deemed appropriate, a certificate of 

exemption to the eligible importer. It is 

the responsibility of the importer to 

retain a copy of the certificate of 

exemption. The importer may be 

requested to submit a copy of the 

certificate to Customs. If Customs 

collects the assessment, the Board shall 

refund such importers their assessments 

no later than 60 calendar days after 

receipt of such assessments by the 

Board. No interest shall be paid on the 

assessments collected by Customs. 

(3) Domestic manufacturers who did 

not apply to the Board for an exemption 

and shipped less than 15 million board 

feet of softwood lumber within the 

United States during the fiscal year shall 

receive a refund from the Board for the 

applicable assessments within 30 

calendar days after the end of the fiscal 

year. Board staff shall determine the 

assessments paid and refund the 

amount due to the domestic 

manufacturer accordingly. 

(4) Importers who did not apply to the 

Board for an exemption and imported 

less than 15 million board feet of 

softwood lumber during the fiscal year 

shall receive a refund from the Board for 

the applicable assessments within 30 

calendar days after the end of the fiscal 

year. 

(5) If an entity is both a domestic 

manufacturer and an importer, the sum 

of such entity’s domestic shipments and 

imports during a fiscal year shall count 

towards the 15 million board feet 

exemption. 

(6) Domestic manufacturers and 

importers who received an exemption 

certificate from the Board but 

domestically shipped or imported 15 

million board feet or more of softwood 

lumber during the fiscal year shall pay 

the Board the applicable assessments 

owed on the domestic shipments or 

imports over the 15 million board footexemption threshold within 30 calendar 

days after the end of the fiscal year and 

submit any necessary reports to the 

Board pursuant to § 1217.70. 

(7) The Board may develop additional 

procedures to administer this exemption 

as appropriate. Such procedures shall be 

implemented through rulemaking by the 

Secretary. 

(b) Manufacturers for the U.S. market 

who domestically ship and/or import 15 

million board feet or more annually. (1) 

Domestic manufacturers who 

domestically ship 15 million board feet 

or more per fiscal year shall not pay 

assessments on their first 15 million 

board feet of softwood lumber shipped 

during the applicable fiscal year. 

(2) Importers who import 15 million 

board feet or more per fiscal year shall 

be exempt from paying assessments on 

their first 15 million board feet of 

softwood lumber imported during the 

applicable fiscal year. Such importers 

shall receive a refund from the Board for 

the applicable assessments collected by 

Customs. The Board shall refund such 

importers their assessments no later 

than 60 calendar days after receipt by 

the Board. 

(c) Export. Shipments of softwood 

lumber by domestic manufacturers to 

locations outside of the United States 

are exempt from assessment. The Board 

shall establish procedures for approval 

by the Secretary for refunding 

assessments that may be paid on such 

shipments and establish any necessary 

safeguards as deemed appropriate. 

Safeguard procedures shall be 

implemented by the Secretary through 

rulemaking. The Board may also 

recommend to the Secretary that such 

shipments be assessed if it deems 

appropriate. Such action shall be 

implemented by the Secretary through 

rulemaking. 

(d) Organic. (1) Organic Act means 

section 2103 of the Organic Foods 


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Production Act of 1990 (7 U.S.C. 6501– 

6522). 

(2) A domestic manufacturer who 

operates under an approved National 

Organic Program (NOP) (7 CFR part 205) 

system plan, only manufactures and 

ships softwood lumber that is eligible to 

be labeled as 100 percent organic under 

the NOP and is not a split operation 

shall be exempt from payment of 

assessments. To obtain an organic 

exemption, an eligible domestic 

manufacturer shall submit a request for 

exemption to the Board, on a form 

provided by the Board, at any time 

initially and annually thereafter on or 

before the start of the fiscal year as long 

as such manufacturer continues to be 

eligible for the exemption. The request 

shall include the following: The 

manufacturer’s name and address; a 

copy of the organic operation certificate 

provided by a USDA-accredited 

certifying agent as defined in the 

Organic Act, a signed certification that 

the applicant meets all of the 

requirements specified for an 

assessment exemption, and such other 

information as may be required by the 

Board and with the approval of the 

Secretary. The Board shall have 30 

calendar days to approve the exemption 

request. If the exemption is not granted, 

the Board will notify the applicant and 

provide reasons for the denial within 

the same time frame. 

(3) An importer who imports only 

softwood lumber that is eligible to be 

labeled as 100 percent organic under the 

NOP and is not a split operation shall 

be exempt from the payment of 

assessments. To obtain an organic 

exemption, an eligible importer must 

submit documentation to the Board and 

request an exemption from assessment 

on 100 percent of organic softwood 

lumber, on a form provided by the 

Board, at any time initially and annually 

thereafter on or before the beginning of 

the fiscal year as long as the importer 

continues to be eligible for the 

exemption. This documentation shall 

include the same information as 

required by domestic manufacturers in 

paragraph (d)(2) of this section. If the 

importer complies with the 

requirements of this section, the Board 

will grant the exemption and issue a 

Certificate of Exemption to the importer. 

The Board will also issue the importer 

a 9-digit alphanumeric number valid for 

1 year from the date of issue. This 

alphanumeric number should be 

entered by the importer to Customs at 

entry summary. Any line item entry of 

100 percent organic softwood lumber 

bearing this alphanumeric number 

assigned by the Board will not be 

subject to assessments. 

(4) Importers who are exempt from 

assessment in paragraph (d)(3) of this 

section shall also be eligible for 

reimbursement of assessments collected 

by Customs and may apply to the Board 

for a reimbursement. The importer 

would be required to submit satisfactory 

proof to the Board that the importer 

paid the assessment on exempt organic 

products. 

(5) The exemption will apply 

immediately following the issuance of 

the exemption certificate. 

Promotion, Research, and Information 

§ 1217.60 Programs, plans, and projects. 

(a) The Board shall develop and 

submit to the Secretary for approval 

programs, plans and projects authorized 

by this subpart. Such programs, plans 

and projects shall provide for 

promotion, research, education and 

other activities including consumer and 

industry information and advertising 

designed to: 

(1) Maintain, develop, expand and 

grow markets for softwood lumber; 

(2) Enhance and strengthen the image, 

reputation and public acceptance of 

softwood lumber and the forests from 

which it comes; 

(3) Develop new markets and 

marketing strategies for softwood 

lumber; 

(4) Expand the knowledge and 

understanding of the strength, safety 

and technical applications and 

encourage innovation in the use of 

softwood lumber; 

(5) Transfer and disseminate the 

knowledge and understanding of the 

strength, safety, environmental and 

sustainable benefits and technical 

applications of softwood lumber; and 

(6) Develop, expand and grow existing 

and new opportunities and applications 

for softwood lumber. 

(b) No program, plan, or project shall 

be implemented prior to its approval by 

the Secretary. Once a program, plan, or 

project is so approved, the Board shall 

take appropriate steps to implement it. 

(c) The Board must evaluate each 

program, plan and project authorized 

under this subpart to ensure that it 

contributes to an effective and 

coordinated program of research, 

promotion and information. The Board 

must submit the evaluations to the 

Secretary. If the Board finds that a 

program, plan or project does not 

contribute to an effective program of 

promotion, research, or information, 

then the Board shall terminate such 

plan or program. 

§ 1217.61 Independent evaluation. 

At least once every five years, the 

Board shall authorize and fund from 

funds otherwise available to the Board, 

an independent evaluation of the 

effectiveness of the Order and the 

programs conducted by the Board 

pursuant to the Act. The Board shall 

submit to the Secretary, and make 

available to the public, the results of 

each periodic independent evaluation 

conducted under this paragraph. 

§ 1217.62 Patents, copyrights, trademarks, 

inventions, product formulations, and 

publications. 

Any patents, copyrights, trademarks, 

inventions, product formulations, and 

publications developed through the use 

of funds received by the Board under 

this subpart shall be the property of the 

U.S. Government, as represented by the 

Board, and shall along with any rents, 

royalties, residual payments, or other 

income from the rental, sales, leasing, 

franchising, or other uses of such 

patents, copyrights, trademarks, 

inventions, publications, or product 

formulations, inure to the benefit of the 

Board, shall be considered income 

subject to the same fiscal, budget, and 

audit controls as other funds of the 

Board, and may be licensed subject to 

approval by the Secretary. Upon 

termination of this subpart, § 1217.83 

shall apply to determine disposition of 

all such property. 

Reports, Books, and Records 

§ 1217.70 Reports. 

(a) Each manufacturer for the U.S. 

market will be required to provide 

periodically to the Board such 

information as the Board, with the 

approval of the Secretary, may require. 

Such information may include, but not 

be limited to: 

(1) For domestic manufacturers: 

(i) The name, address and telephone 

number of the domestic manufacturer; 

(ii) The board feet of softwood lumber 

shipped within the United States; 

(iii) The board feet of softwood 

lumber for which assessments were 

paid; and 

(iv) The board feet of softwood lumber 

that was exported. 

(2) For importers: 

(i) The name, address and telephone 

number of the importer; 

(ii) The board feet of softwood lumber 

imported; 

(iii) The board feet of softwood 

lumber for which assessments were 

paid; and 

(iv) The country of export. 

(b) For domestic manufacturers, such 

information shall accompany the 

collected payment of assessments on a 

quarterly basis specified in § 1217.52. 

For importers who pay their 

assessments directly to the Board, such 


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information shall accompany the 

payment of collected assessments 

within 30 calendar days after 

importation specified in § 1217.52. 

§ 1217.71 Books and records. 

Each manufacturer for the U.S. 

market, including those exempt under 

§ 1217.53, shall maintain any books and 

records necessary to carry out the 

provisions of this subpart and 

regulations issued thereunder, including 

such records as are necessary to verify 

any required reports. Domestic 

manufacturers who only export 

softwood lumber shall also retain such 

books and records. Such books and 

records must be made available during 

normal business hours for inspection by 

the Board’s or Secretary’s employees or 

agents. A manufacturer for the U.S. 

market must maintain the books and 

records for two years beyond the fiscal 

period to which they apply. 

§ 1217.72 Confidential treatment. 

All information obtained from books, 

records, or reports under the Act, this 

subpart and the regulations issued 

thereunder shall be kept confidential by 

all persons, including all employees and 

former employees of the Board, all 

officers and employees and former 

officers and employees of contracting 

and subcontracting agencies or agreeing 

parties having access to such 

information. Such information shall not 

be available to Board members or other 

manufacturers for the U.S. market. Only 

those persons having a specific need for 

such information solely to effectively 

administer the provisions of this subpart 

shall have access to such information. 

Only such information so obtained as 

the Secretary deems relevant shall be 

disclosed by them, and then only in a 

judicial proceeding or administrative 

hearing brought at the direction, or at 

the request, of the Secretary, or to which 

the Secretary or any officer of the 

United States is a party, and involving 

this subpart. Nothing in this section 

shall be deemed to prohibit: 

(a) The issuance of general statements 

based upon the reports of the number of 

persons subject to this subpart or 

statistical data collected therefrom, 

which statements do not identify the 

information furnished by any person; 

and 

(b) The publication, by direction of 

the Secretary, of the name of any person 

who has been adjudged to have violated 

this part, together with a statement of 

the particular provisions of this part 

violated by such person. 

Miscellaneous 

§ 1217.80 Right of the Secretary. 

All fiscal matters, programs or 

projects, contracts, rules or regulations, 

reports, or other substantive actions 

proposed and prepared by the Board 

shall be submitted to the Secretary for 

approval. 

§ 1217.81 Referenda. 

(a) Initial referendum. The Order shall 

not become effective unless the Order is 

approved by a majority of domestic 

manufacturers and importers voting in 

the referendum who also represent a 

majority of the volume of softwood 

lumber represented in the referendum 

who, during a representative period 

determined by the Secretary, have been 

engaged in the domestic manufacturing 

or importation of softwood lumber. A 

single entity who domestically 

manufactures and imports softwood 

lumber may cast one vote in the 

referendum. 

(b) Subsequent referenda. The 

Secretary shall conduct subsequent 

referenda: 

(1) For the purpose of ascertaining 

whether manufacturers for the U.S. 

market favor the amendment, 

continuation, suspension, or 

termination of the Order; 

(2) Five years after this Order becomes 

effective and every five years thereafter, 

to determine whether softwood lumber 

manufacturers for the U.S. market favor 

the continuation of the Order. The 

Order shall continue if it is favored by 

a majority of domestic manufacturers 

and importers voting in the referendum 

who also represent a majority of the 

volume of softwood lumber represented 

in the referendum who, during a 

representative period determined by the 

Secretary, have been engaged in the 

domestic manufacturing or importation 

of softwood lumber; 

(3) At the request of the Board 

established in this Order; 

(4) At the request of 10 percent or 

more of the number of persons eligible 

to vote in a referendum as set forth 

under the Order; or 

(5) At any time as determined by the 

Secretary. 

§ 1217.82 Suspension or termination. 

(a) The Secretary shall suspend or 

terminate this part or subpart or a 

provision thereof, if the Secretary finds 

that this part or subpart or a provision 

thereof obstructs or does not tend to 

effectuate the purposes of the Act, or if 

the Secretary determines that this 

subpart or a provision thereof is not 

favored by persons voting in a 

referendum conducted pursuant to the 

Act. 

(b) The Secretary shall suspend or 

terminate this subpart at the end of the 

fiscal period whenever the Secretary 

determines that its suspension or 

termination is favored by a majority of 

domestic manufacturers and importers 

voting in the referendum who also 

represent a majority of the volume 

represented in the referendum who, 

during a representative period 

determined by the Secretary, have been 

engaged in the domestic manufacturing 

or importation of softwood lumber. 

(c) If, as a result of a referendum the 

Secretary determines that this subpart is 

not approved, the Secretary shall: 

(1) Not later than one hundred and 

eighty (180) calendar days after making 

the determination, suspend or 

terminate, as the case may be, the 

collection of assessments under this 

subpart. 

(2) As soon as practical, suspend or 

terminate, as the case may be, activities 

under this subpart in an orderly 

manner. 

§ 1217.83 Proceedings after termination. 

(a) Upon termination of this subpart, 

the Board shall recommend to the 

Secretary up to nine of its members, 

representing all regions specified in 

§ 1217.40(b), three of whom shall be 

importers and six of whom shall be 

domestic manufacturers, to serve as 

trustees for the purpose of liquidating 

the Board’s affairs. Such persons, upon 

designation by the Secretary, shall 

become trustees of all of the funds and 

property then in the possession or under 

control of the Board, including claims 

for any funds unpaid or property not 

delivered, or any other existing claim at 

the time of such termination. 

(b) The said trustees shall: 

(1) Continue in such capacity until 

discharged by the Secretary; 

(2) Carry out the obligations of the 

Board under any contracts or 

agreements entered into pursuant to the 

Order; 

(3) From time to time account for all 

receipts and disbursements and deliver 

all property on hand, together with all 

books and records of the Board and 

trustees, to such person or person as the 

Secretary directs; and 

(4) Upon request of the Secretary 

execute such assignments or other 

instruments necessary or appropriate to 

vest in such persons title and right to all 

of the funds, property, and claims 

vested in the Board or the trustees 

pursuant to the Order. 

(c) Any person to whom funds, 

property, or claims have been 

transferred or delivered pursuant to the 

Order shall be subject to the same 


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obligations imposed upon the Board and 

upon the trustees. 

(d) Any residual funds not required to 

defray the necessary expenses of 

liquidation shall be turned over to the 

Secretary to be disposed of, to the extent 

practical, to one or more softwood 

lumber industry organizations in the 

United States whose mission is generic 

softwood lumber promotion, research, 

and information programs. 

§ 1217.84 Effect of termination or 

amendment. 

Unless otherwise expressly provided 

by the Secretary, the termination of this 

subpart or of any regulation issued 

pursuant thereto, or the issuance of any 

amendment to either thereof, shall not: 

(a) Affect or waive any right, duty, 

obligation, or liability which shall have 

arisen or which may thereafter arise in 

connection with any provision of this 

subpart or any regulation issued 

thereunder; 

(b) Release or extinguish any violation 

of this subpart or any regulation issued 

thereunder; or 

(c) Affect or impair any rights or 

remedies of the United States, or of the 

Secretary or of any other persons, with 

respect to any such violation. 

§ 1217.85 Personal liability. 

No member or employee of the Board 

shall be held personally responsible, 

either individually or jointly with 

others, in any way whatsoever, to any 

person for errors in judgment, mistakes, 

or other acts, either of commission or 

omission, as such member or employee, 

except for acts of dishonesty or willful 

misconduct. 

§ 1217.86 Separability. 

If any provision of this subpart is 

declared invalid or the applicability of 

it to any person or circumstances is held 

invalid, the validity of the remainder of 

this subpart, or the applicability thereof 

to other persons or circumstances shall 

not be affected thereby. 

§ 1217.87 Amendments. 

Amendments to this subpart may be 

proposed from time to time by the Board 

or any interested person affected by the 

provisions of the Act, including the 

Secretary. 

§ 1217.88 OMB control numbers. 

The control numbers assigned to the 

information collection requirements by 

the Office of Management and Budget 

pursuant to the Paperwork Reduction 

Act of 1995, 44 U.S.C. chapter 35, are 

OMB control number 0505–0001 (Board 

nominee background statement) and 

OMB control number 0581–0265. 

Subpart B—[Reserved] 

Dated: July 28, 2011. 

David R. Shipman, 

Acting Administrator. 

[FR Doc. 2011–19491 Filed 8–1–11; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF ENERGY 

10 CFR Parts 429 and 430 

[Docket No. EERE–2010–BT–CE–0014] 

RIN 1904–AC23 

Energy Conservation Program: 

Certification, Compliance, and 

Enforcement for Consumer Products 

and Commercial and Industrial 

Equipment; Correction 

Correction 

In rule document 2011–10401 

appearing on pages 24762–24782 in the 

issue of May 2, 2011, make the 

following correction: 

§ 429.54 [Corrected] 

On page 14780, the formula for 

§ 429.54(a)(2)(i)(B) should read: 

And x is the sample mean; s is the 

sample standard deviation; n is the 

number of samples; and t0.99 is the t 

statistic for a 99% two-tailed confidence 

interval with n–1 degrees of freedom 

(from Appendix A). 

[FR Doc. C1–2011–10401 Filed 8–1–11; 8:45 am] 

BILLING CODE 1505–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 95 

[Docket No. 30794; Amdt. No. 495] 

IFR Altitudes; Miscellaneous 

Amendments 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule 

SUMMARY: This amendment adopts 

miscellaneous amendments to the 

required IFR (instrument flight rules) 

altitudes and changeover points for 

certain Federal airways, jet routes, or 

direct routes for which a minimum or 

maximum en route authorized IFR 

altitude is prescribed. This regulatory 

action is needed because of changes 

occurring in the National Airspace 

System. These changes are designed to 

provide for the safe and efficient use of 

the navigable airspace under instrument 

conditions in the affected areas. 

DATES: Effective Date: 0901 UTC, August 

25, 2011. 

FOR FURTHER INFORMATION CONTACT: 

Harry Hodges, Flight Procedure 

Standards Branch (AMCAFS–420), 

Flight Technologies and Programs 

Division, Flight Standards Service, 

Federal Aviation Administration, Mike 

Monroney Aeronautical Center, 6500 

South MacArthur Blvd., Oklahoma City, 

OK 73169 (Mail Address: P.O. Box 

25082 Oklahoma City, OK 73125) 

telephone: (405) 954–4164. 

SUPPLEMENTARY INFORMATION: This 

amendment to part 95 of the Federal 

Aviation Regulations (14 CFR part 95) 

amends, suspends, or revokes IFR 

altitudes governing the operation of all 

aircraft in flight over a specified route 

or any portion of that route, as well as 

the changeover points (COPs) for 

Federal airways, jet routes, or direct 

routes as prescribed in part 95. 

The Rule 

The specified IFR altitudes, when 

used in conjunction with the prescribed 

changeover points for those routes, 

ensure navigation aid coverage that is 

adequate for safe flight operations and 

free of frequency interference. The 

reasons and circumstances that create 

the need for this amendment involve 

matters of flight safety and operational 

efficiency in the National Airspace 

System, are related to published 

aeronautical charts that are essential to 

the user, and provide for the safe and 

efficient use of the navigable airspace. 

In addition, those various reasons or 

circumstances require making this 

amendment effective before the next 

scheduled charting and publication date 

of the flight information to assure its 

timely availability to the user. The 

effective date of this amendment reflects 

those considerations. In view of the 

close and immediate relationship 

between these regulatory changes and 

safety in air commerce, I find that notice 

and public procedure before adopting 

this amendment are impracticable and 

contrary to the public interest and that 

good cause exists for making the 

amendment effective in less than 30 

days. 

Conclusion 

The FAA has determined that this 

regulation only involves an established 

body of technical regulations for which 

frequent and routine amendments are 

necessary to keep them operationally 

current. It, therefore—(1) is not a 


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