This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

49381 

Vol. 76, No. 154 

Wednesday, August 10, 2011 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 906 

[Doc. No. AMS–FV–11–0057; FV11–906–1 

PR] 

Oranges and Grapefruit Grown in 

Lower Rio Grande Valley in Texas; 

Increased Assessment Rate 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Proposed rule. 

SUMMARY: This rule would increase the 

assessment rate established for the 

Texas Valley Citrus Committee 

(Committee) for the 2011–12 and 

subsequent fiscal periods from $0.12 to 

$0.14 per 7/10-bushel carton or 

equivalent of oranges and grapefruit 

handled. The Committee locally 

administers the marketing order which 

regulates the handling of oranges and 

grapefruit grown in the Lower Rio 

Grande Valley in Texas. Assessments 

upon orange and grapefruit handlers are 

used by the Committee to fund 

reasonable and necessary expenses of 

the program. The fiscal period begins 

August 1 and ends July 31. The 

assessment rate would remain in effect 

indefinitely unless modified, 

suspended, or terminated. 

DATES: Comments must be received by 

August 22, 2011. 

ADDRESSES: Interested persons are 

invited to submit written comments 

concerning this rule. Comments must be 

sent to the Docket Clerk, Marketing 

Order Administration Branch, Fruit and 

Vegetable Programs, AMS, USDA, 1400 

Independence Avenue, SW., STOP 

0237, Washington, DC 20250–0237; Fax: 

(202) 720–8938; or Internet: http:// 

www.regulations.gov. Comments should 

reference the document number and the 

date and page number of this issue of 

the Federal Register and will be 

available for public inspection in the 

Office of the Docket Clerk during regular 

business hours, or can be viewed at: 

http://www.regulations.gov. All 

comments submitted in response to this 

rule will be included in the record and 

will be made available to the public. 

Please be advised that the identity of the 

individuals or entities submitting the 

comments will be made public on the 

Internet at the address provided above. 

FOR FURTHER INFORMATION CONTACT: 

Belinda G. Garza, Regional Manager, 

Texas Marketing Field Office, Marketing 

Order Administration Branch, Fruit and 

Vegetable Programs, AMS, USDA; 

Telephone: (956) 632–5330, Fax: (956) 

632–5358, or E-mail: 

Belinda.Garza@ams.usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Laurel May, 

Marketing Order Administration 

Branch, Fruit and Vegetable Programs, 

AMS, USDA, 1400 Independence 

Avenue, SW., STOP 0237, Washington, 

DC 20250–0237; Telephone: (202) 720– 

2491, Fax: (202) 720–8938, or E-mail: 

Laurel.May@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This rule 

is issued under Marketing Agreement 

and Order No. 906, as amended (7 CFR 

part 906), regulating the handling of 

oranges and grapefruit grown in the 

Lower Rio Grande Valley in Texas, 

hereinafter referred to as the ‘‘order.’’ 

The order is effective under the 

Agricultural Marketing Agreement Act 

of 1937, as amended (7 U.S.C. 601–674), 

hereinafter referred to as the ‘‘Act.’’ 

The Department of Agriculture 

(USDA) is issuing this rule in 

conformance with Executive Order 

12866. 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. Under the marketing order now 

in effect, orange and grapefruit handlers 

in the Lower Rio Grande Valley are 

subject to assessments. Funds to 

administer the order are derived from 

such assessments. It is intended that the 

assessment rate as proposed herein 

would be applicable to all assessable 

oranges and grapefruit beginning on 

August 1, 2011, and continue until 

amended, suspended, or terminated. 

The Act provides that administrative 

proceedings must be exhausted before 

parties may file suit in court. Under 

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

handler subject to an order may file 

with USDA a petition stating that the 

order, any provision of the order, or any 

obligation imposed in connection with 

the order is not in accordance with law 

and request a modification of the order 

or to be exempted therefrom. Such 

handler is afforded the opportunity for 

a hearing on the petition. After the 

hearing, USDA would rule on the 

petition. The Act provides that the 

district court of the United States in any 

district in which the handler is an 

inhabitant, or has his or her principal 

place of business, has jurisdiction to 

review USDA’s ruling on the petition, 

provided an action is filed not later than 

20 days after the date of the entry of the 

ruling. 

This rule would increase the 

assessment rate established for the 

Committee for the 2011–12 and 

subsequent fiscal periods from $0.12 to 

$0.14 per 7/10-bushel carton or 

equivalent of oranges and grapefruit 

handled. 

The Texas orange and grapefruit 

marketing order provides authority for 

the Committee, with the approval of 

USDA, to formulate an annual budget of 

expenses and collect assessments from 

handlers to administer the program. The 

members of the Committee are 

producers and handlers of Texas 

oranges and grapefruit. They are 

familiar with the Committee’s needs and 

with the costs for goods and services in 

their local area and are thus in a 

position to formulate an appropriate 

budget and assessment rate. The 

assessment rate is formulated and 

discussed in a public meeting. Thus, all 

directly affected persons have an 

opportunity to participate and provide 

input. 

For the 2004–05 and subsequent fiscal 

periods, the Committee recommended, 

and USDA approved, an assessment rate 

that would continue in effect from fiscal 

period to fiscal period unless modified, 

suspended, or terminated by USDA 

upon recommendation and information 

submitted by the Committee or other 

information available to USDA. 

The Committee met on June 9, 2011, 

and unanimously recommended 2011– 

12 expenditures of $1,224,037 and an 

assessment rate of $0.14 per 7/10-bushel 

carton or equivalent of oranges and 

grapefruit handled. In comparison, last 

year’s budgeted expenditures were 

$1,109,037. The proposed assessment 

rate of $0.14 is $0.02 higher than the 

rate currently in effect. The Committee 

recommended a higher assessment rate 

due to an expected smaller crop and an 


srobinson on DSK4SPTVN1PROD with PROPOSALS
49382 Federal Register / Vol. 76, No. 154 / Wednesday, August 10, 2011 / Proposed Rules 

increase in budgeted expenses. 

Budgeted expenses were increased to 

provide additional funding for the 

Committee’s Mexican fruit fly program, 

and also to fund a Federal Agriculture 

Improvement Reform (FAIR) review 

analysis to be conducted next fiscal 

period. In 1996, Congress mandated that 

every five years commodity boards 

established under the oversight of the 

Secretary of Agriculture pursuant to a 

commodity promotion law should fund 

an independent evaluation of the 

effectiveness of their generic promotion 

program, which is now commonly 

known as a FAIR review. 

The Committee projected a reduced 

crop of 8,750,000 7/10-bushel carton 

equivalents, which would be 289,137 7/ 

10-bushel carton equivalents less than 

the 9,039,137 7/10-bushel carton 

equivalents handled during the 2010–11 

fiscal period. Furthermore, due to severe 

cuts in the State of Texas’ budget, the 

Texas Department of Agriculture 

requested the citrus industry’s 

assistance in funding a Mexican fruit fly 

trapping program, which is essential to 

the industry’s well-being. Based on a 

decreased crop estimate and anticipated 

expenditure increases, the Committee 

unanimously recommended that the 

assessment rate of $0.12 currently in 

effect be increased by $0.02. Income 

derived from handler assessments and 

interest would be adequate to cover 

budgeted expenses. 

The major expenditures 

recommended by the Committee for the 

2011–12 fiscal period include $479,000 

for the Mexican fruit fly support, 

trapping, and bait spray programs; 

$425,000 for promotion; and $250,737 

for management, administration, and 

compliance oversight. In comparison, 

major expenditures for these items in 

2010–11 (current fiscal period) were 

$229,000, $600,000, and $246,737, 

respectively. 

The assessment rate recommended by 

the Committee was derived by dividing 

anticipated expenditures by estimated 

shipments of Texas oranges and 

grapefruit. As mentioned earlier, orange 

and grapefruit shipments for the 2011– 

12 fiscal period are estimated at 8.75 

million 7/10-bushel carton equivalents, 

which should provide $1,225,000 in 

assessment income. Income generated 

through the $0.14 assessment rate and 

interest would be more than sufficient 

to meet anticipated expenses 

($1,224,037). Reserve funds at the end of 

2011–12 are projected at $283,774, well 

below one fiscal period’s expenses, 

which would be within the maximum 

reserve amount permitted under the 

order (§ 906.35). 

The proposed assessment rate would 

continue in effect indefinitely unless 

modified, suspended, or terminated by 

USDA upon recommendation and 

information submitted by the 

Committee or other available 

information. 

Although this assessment rate would 

be in effect for an indefinite period, the 

Committee would continue to meet 

prior to or during each fiscal period to 

recommend a budget of expenses and 

consider recommendations for 

modification of the assessment rate. The 

dates and times of Committee meetings 

are available from the Committee or 

USDA. Committee meetings are open to 

the public and interested persons may 

express their views at these meetings. 

USDA would evaluate Committee 

recommendations and other available 

information to determine whether 

modification of the assessment rate is 

needed. Further rulemaking would be 

undertaken as necessary. The 

Committee’s 2011–12 budget and those 

for subsequent fiscal periods would be 

reviewed and, as appropriate, approved 

by USDA. 

Initial Regulatory Flexibility Analysis 

Pursuant to requirements set forth in 

the Regulatory Flexibility Act (RFA) (5 

U.S.C. 601–612), the Agricultural 

Marketing Service (AMS) has 

considered the economic impact of this 

rule on small entities. Accordingly, 

AMS has prepared this initial regulatory 

flexibility analysis. 

The purpose of the RFA is to fit 

regulatory actions to the scale of 

business subject to such actions in order 

that small businesses will not be unduly 

or disproportionately burdened. 

Marketing orders issued pursuant to the 

Act, and the rules issued thereunder, are 

unique in that they are brought about 

through group action of essentially 

small entities acting on their own 

behalf. 

There are approximately 177 

producers of oranges and grapefruit in 

the production area and approximately 

12 handlers subject to regulation under 

the marketing order. Small agricultural 

producers are defined by the Small 

Business Administration (SBA) (13 CFR 

121.201) as those having annual receipts 

less than $750,000, and small 

agricultural service firms are defined as 

those whose annual receipts are less 

than $7,000,000. 

An updated Texas citrus industry 

profile shows that 6 of the 12 handlers 

(50 percent) would be considered large 

businesses under SBA’s definition, and 

the remaining 6 handlers (50 percent) 

would be considered small businesses. 

Of the approximately 177 producers 

within the production area, few have 

sufficient acreage to generate sales in 

excess of $750,000. Thus, half of the 

handlers and the majority of producers 

of Texas oranges and grapefruit may be 

classified as small entities. 

This rule would increase the 

assessment rate established for the 

Committee and collected from handlers 

for the 2011–12 and subsequent fiscal 

periods from $0.12 to $0.14 per 7/10- 

bushel carton or equivalent of oranges 

and grapefruit. The Committee 

unanimously recommended 2011–12 

expenditures of $1,224,037 and an 

assessment rate of $0.14 per 7/10-bushel 

carton or equivalent handled. The 

quantity of assessable oranges and 

grapefruit for the 2011–12 fiscal period 

is estimated at 8.75 million 7/10-bushel 

carton equivalents. Thus, the $0.14 

assessment rate should provide 

$1,225,000 in assessment income which 

would be sufficient to meet anticipated 

expenses. 

The major expenditures 

recommended by the Committee for the 

2011–12 fiscal period include $479,000 

for the Mexican Fruit Fly support, 

trapping, and bait spray programs; 

$425,000 for promotion; and $250,737 

for management, administration, and 

compliance oversight. Major 

expenditures for these items in 2010–11 

(current fiscal period) were $229,000, 

$600,000, and $246,737, respectively. 

The increased assessment rate 

recommended by the Committee was 

due to a reduced crop estimate (8.75 

million 7/10-bushel carton equivalents 

of oranges and grapefruit), and an 

increase in budgeted expenditures to 

provide additional funding for the 

Mexican fruit fly program and a FAIR 

analysis. With anticipated assessment 

income of $1,225,000, and anticipated 

expenditures of $1,224,037, funds in the 

reserve would be kept within the 

maximum of one fiscal period’s 

expenses permitted by the order 

(§ 906.35). 

In arriving at its recommended 

budget, the Committee considered 

alternative expenditure levels based 

upon the relative need of the Mexican 

fruit fly trapping and promotion 

programs to the Texas citrus industry. 

The assessment rate of $0.14 per 7/10- 

bushel carton equivalent was then 

determined by dividing the total 

recommended budget by the quantity of 

assessable oranges and grapefruit, 

estimated at 8.75 million 7/10-bushel 

carton equivalents for the 2011–12 fiscal 

period. Considering assessment revenue 

and interest, total revenue would be 

approximately $2,463 above the 

anticipated expenses, which the 

Committee determined to be acceptable. 


srobinson on DSK4SPTVN1PROD with PROPOSALS
Federal Register / Vol. 76, No. 154 / Wednesday, August 10, 2011 / Proposed Rules 49383 

A review of historical information 

from recent seasons (2008–2010) and 

preliminary information pertaining to 

the upcoming fiscal period indicates 

that the season average packinghouse 

door price for the 2011–12 fiscal period 

could likely range from $6.24 to $8.23 

per 7/10-bushel carton equivalent of 

Texas oranges, and from $10.90 to 

$15.55 for Texas grapefruit. Therefore, 

the estimated assessment revenue for 

the 2011–12 fiscal period as a 

percentage of total grower 

(packinghouse door) revenue could 

range between 1.7 and 2.2 percent for 

oranges and between 0.9 and 1.3 percent 

for grapefruit. 

This action would increase the 

assessment obligation imposed on 

handlers. While assessments impose 

some additional costs on handlers, the 

costs are minimal and uniform on all 

handlers. Some of the additional costs 

may be passed on to producers. 

However, these costs would be offset by 

the benefits derived by the operation of 

the order. In addition, the Committee’s 

meeting was widely publicized 

throughout the Texas orange and 

grapefruit industry and all interested 

persons were invited to attend the 

meeting and participate in Committee 

deliberations on all issues. Like all 

Committee meetings, the June 9, 2011, 

meeting was a public meeting and all 

entities, both large and small, were able 

to express views on this issue. Finally, 

interested persons are invited to submit 

comments on this proposed rule, 

including the regulatory and 

informational impacts of this action on 

small businesses. 

In accordance with the Paperwork 

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

Chapter 35), the order’s information 

collection requirements have been 

previously approved by the Office of 

Management and Budget (OMB) and 

assigned OMB No. 0581–0189 (Generic 

Fruit Crops—Mandatory). No changes in 

those requirements as a result of this 

action are necessary. Should any 

changes become necessary, they would 

be submitted to OMB for approval. 

This proposed rule would impose no 

additional reporting or recordkeeping 

requirements on either small or large 

Texas orange and grapefruit handlers. 

As with all Federal marketing order 

programs, reports and forms are 

periodically reviewed to reduce 

information requirements and 

duplication by industry and public 

sector agencies. 

AMS is committed to complying with 

the E–Government Act, to promote the 

use of the Internet and other 

information technologies to provide 

increased opportunities for citizen 

access to Government information and 

services, and for other purposes. 

USDA has not identified any relevant 

Federal rules that duplicate, overlap, or 

conflict with this rule. 

A small business guide on complying 

with fruit, vegetable, and specialty crop 

marketing agreements and orders may 

be viewed at: http://www.ams.usda.gov/ 

MarketingOrdersSmallBusinessGuide. 

Any questions about the compliance 

guide should be sent to Laurel May at 

the previously-mentioned address in the 

FOR FURTHER INFORMATION CONTACT

section. 

A 10-day comment period is provided 

to allow interested persons to respond 

to this proposed rule. Ten days is 

deemed appropriate because: (1) The 

2011–12 fiscal period begins on August 

1, 2011, and the marketing order 

requires that the rate of assessment for 

each fiscal period apply to all assessable 

oranges and grapefruit handled during 

such fiscal period; (2) the Committee 

needs to have sufficient funds to pay its 

expenses, which are incurred on a 

continuous basis; and (3) handlers are 

aware of this action, which was 

unanimously recommended by the 

Committee at a public meeting and is 

similar to other assessment rate actions 

issued in past years. 

List of Subjects in 7 CFR Part 906 

Grapefruit, Marketing agreements, 

Oranges, Reporting and recordkeeping 

requirements. 

For the reasons set forth in the 

preamble, 7 CFR part 906 is proposed to 

be amended as follows: 

PART 906—ORANGES AND 

GRAPEFRUIT GROWN IN LOWER RIO 

GRANDE VALLEY IN TEXAS 

1. The authority citation for 7 CFR 

part 906 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

2. Section 906.235 is revised to read 

as follows: 

§ 906.235 Assessment rate. 

On and after August 1, 2011, an 

assessment rate of $0.14 per 7/10-bushel 

carton or equivalent is established for 

oranges and grapefruit grown in the 

Lower Rio Grande Valley in Texas. 

Dated: August 3, 2011. 

David R. Shipman, 

Acting Administrator, Agricultural Marketing 

Service. 

[FR Doc. 2011–20120 Filed 8–9–11; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 71 

[Docket No. FAA–2011–0625; Airspace 

Docket No. 11–AEA–16] 

Proposed Amendment of Class D and 

E Airspace; North Philadelphia, PA 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Notice of proposed rulemaking 

(NPRM). 

SUMMARY: This action proposes to 

amend Class D and Class E airspace at 

Northeast Philadelphia Airport, North 

Philadelphia, PA, due to the closing of 

Willow Grove Naval Air Station and 

Warminster NAWC. This action would 

enhance the safety and airspace 

management of Instrument Flight Rules 

(IFR) operations in the North 

Philadelphia, PA airspace area. 

DATES: Comments must be received on 

or before September 26, 2011. The 

Director of the Federal Register 

approves this incorporation by reference 

action under title 1, Code of Federal 

Regulations, part 51, subject to the 

annual revision of FAA, Order 7400.9 

and publication of conforming 

amendments. 

ADDRESSES: Send comments on this rule 

to: U. S. Department of Transportation, 

Docket Operations, West Building 

Ground Floor, Room W12–140, 1200 

New JerseyAvenue, SE., Washington, 

DC 20590–0001; Telephone: 1–800– 

647–5527; Fax: 202–493–2251. You 

must identify the Docket Number FAA– 

2011–0625; Airspace Docket No. 11– 

AEA–16, at the beginning of your 

comments. You may also submit and 

review received comments through the 

Internet at 

http://www.regulations.gov. 

You may review the public docket 

containing the rule, any comments 

received, and any final disposition in 

person in the Dockets Office (see 

ADDRESSES section for address and 

phone number) between 9 a.m. and 

5 p.m., Monday through Friday, except 

Federal Holidays. 

An informal docket may also be 

examined during normal business hours 

at the office of the Eastern Service 

Center, Federal Aviation 

Administration, Room 210, 1701 

Columbia Avenue, College Park, Georgia 

30337. 

FOR FURTHER INFORMATION CONTACT: John 

Fornito, Airspace Specialist, Operations 

Support Group, Eastern Service Center, 

Air Traffic Organization, Federal 


srobinson on DSK4SPTVN1PROD with PROPOSALS