Federal Register / Vol. 80, No. 77 / Wednesday, April 22, 2015 / Rules and Regulations 22361 

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. 0581–0178 (Generic 

Vegetable and Specialty Crops). 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 final rule relaxes the minimum 

quantity exception under the order from 

1,000 to 2,000 pounds. Accordingly, this 

action will not impose any additional 

reporting or recordkeeping requirements 

on either small or large Colorado Area 

No. 2 potato 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. 

As noted in the initial regulatory 

flexibility analysis, USDA has not 

identified any relevant Federal rules 

that duplicate, overlap or conflict with 

this final 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. 

In addition, the Committee’s meeting 

was widely publicized throughout the 

Colorado Area No. 2 potato industry and 

all interested persons were invited to 

attend the meeting and participate in 

Committee deliberations on all issues. 

Like all Committee meetings, the July 

18, 2013, meeting was a public meeting 

and all entities, both large and small, 

were able to express views on this issue. 

A proposed rule concerning this 

action was published in the Federal 

Register on October 6, 2014 (79 FR 

60117). Copies of the rule were made 

available to all interested Colorado 

potato producers and handlers. Finally, 

the rule was made available through the 

Internet by USDA and the Office of the 

Federal Register. A 60-day comment 

period ending December 5, 2014, was 

provided to allow interested persons to 

respond to the proposal. No comments 

were received. 

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 Jeffrey Smutny 

at the previously mentioned address in 

the FOR FURTHER INFORMATION CONTACT

section. 

In accordance with section 8e of the 

Act, the United States Trade 

Representative has concurred with the 

issuance of this final rule. 

After consideration of all relevant 

matter presented, including the 

information and recommendation 

submitted by the Committee and other 

available information, it is hereby found 

that this rule, as hereinafter set forth, 

will tend to effectuate the declared 

policy of the Act. 

It is further found that good cause 

exists for not postponing the effective 

date of this rule until 30 days after 

publication in the Federal Register (5 

U.S.C. 553) because handlers are already 

shipping potatoes from the 2014–2015 

crop and handlers want to take 

advantage of the relaxation as soon as 

possible. Further, handlers are aware of 

this rule, which was recommended at a 

public meeting. Also, a 60-day comment 

period was provided for in the proposed 

rule and no comments were received. 

List of Subjects 

7 CFR Part 948 

Marketing agreements, Potatoes, 

Reporting and recordkeeping 

requirements. 

7 CFR Part 980 

Food grades and standards, Imports, 

Marketing agreements, Onions, Potatoes, 

Tomatoes. 

For the reasons set forth above, 7 CFR 

parts 948 and 980 are amended as 

follows: 

PART 948—IRISH POTATOES GROWN 

IN COLORADO 

■ 1. The authority citation for 7 CFR 

part 948 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. Amend § 948.386(f) to read as 

follows: 

§ 948.386 Handling regulation. 

* * * * * 

(f) Minimum quantity. For purposes of 

regulation under this part, each person 

may handle up to but not to exceed 

2,000 pounds of potatoes without regard 

to the requirements of paragraphs (a), 

(b), and (c) of this section, but this 

exception shall not apply to any 

shipment which exceeds 2,000 pounds 

of potatoes. 

* * * * * 

PART 980—VEGETABLES; IMPORT 

REGULATIONS 

■ 3. The authority citation for 7 CFR 

part 980 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 4. In § 980.1, paragraph (c) is revised 

to read as follows: 

§ 980.1 Import regulations; Irish potatoes. 

* * * * * 

(c) Minimum quantities. Any 

importation which, in the aggregate, 

does not exceed 500 pounds of red 

skinned, round type or long type 

potatoes, or 2,000 pounds for all other 

round type potatoes, may be imported 

without regard to the provisions of this 

section. 

* * * * * 

Dated: April 16, 2015. 

Rex A. Barnes, 

Associate Administrator, Agricultural 

Marketing Service. 

[FR Doc. 2015–09289 Filed 4–21–15; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 1212 

[Document Number AMS–FV–14–0045] 

Honey Packers and Importers 

Research, Promotion, Consumer 

Education and Information Order; 

Assessment Rate Increase 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This rule amends the Honey 

Packers and Importers Research, 

Promotion, Consumer Education and 

Information Order (Order) to increase 

the assessment rate from $0.01 per 

pound to $0.015 per pound on honey 

and honey products, over a two-year 

period. The Order limits an increase in 

the assessment rate to no more than onequarter cent per pound per year. Thus, 

the rate will increase to $0.0125 per 

pound for the period January 1 through 

December 31, 2015, and to $0.015 per 

pound on and after January 1, 2016. 

This increase was unanimously 

recommended by the Honey Packers 

and Importers Board (Board) which 

administers the Order with oversight by 

the U.S. Department of Agriculture 

(USDA). Under the program, 

assessments are collected from first 

handlers (packers) and importers and 

used for research and promotion 

projects designed to maintain and 

expand the market for honey and honey 

products in the United States and 

abroad. Additional funds will allow the 

Board to expand its production research 

activities and promotional efforts. The 

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22362 Federal Register / Vol. 80, No. 77 / Wednesday, April 22, 2015 / Rules and Regulations 

Board’s production research focuses on 

maintaining the health of honey bee 

colonies. Increasing demand for honey 

and honey products will benefit the 

honey industry as a whole. This action 

also makes three additional changes to: 

Clarify that the assessment rate applies 

not only to the Harmonized Tariff 

Schedule numbers but to any other 

numbers used to identify honey; change 

the length of time that books and 

records are to be held; and change the 

exemption requirements. 

DATES: Effective: May 22, 2015. 

FOR FURTHER INFORMATION CONTACT: 

Patricia A. Petrella, Marketing 

Specialist, Promotion and Economics 

Division, Fruit and Vegetable Program, 

AMS, USDA, 1400 Independence 

Avenue SW., Room 1406–S, Stop 0244, 

Washington, DC 20250–0244; telephone: 

(202) 720–9915; facsimile: (202) 205– 

2800; or electronic mail: 

Patricia.Petrella@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This rule 

is issued under the Order (7 CFR part 

1212). The Order is authorized under 

the Commodity Promotion, Research, 

and Information Act of 1996 (1996 Act) 

(7 U.S.C. 7411–7425). 

Executive Order 12866 and Executive 

13563 

Executive Orders 12866 and 13563 

direct agencies to assess all costs and 

benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distributive impacts and equity). 

Executive Order 13563 emphasizes the 

importance of quantifying both costs 

and benefits, reducing costs, 

harmonizing rules and promoting 

flexibility. This action has been 

designated as a ‘‘non-significant 

regulatory action’’ under section 3(f) of 

Executive Order 12866. Accordingly, 

the Office of Management and Budget 

has waived the review process. 

Executive Order 13175 

This action has been reviewed in 

accordance with the requirements of 

Executive Order 13175, Consultation 

and Coordination with Indian Tribal 

Governments. The review reveals that 

this regulation will not have substantial 

and direct effects on Tribal governments 

and will not have significant Tribal 

implications. 

Executive Order 12988 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. Section 524 of the 1996 Act (7 

U.S.C. 7423) provides that it shall not 

affect or preempt any other Federal or 

State law authorizing promotion or 

research relating to an agricultural 

commodity. 

Under the Order now in effect, honey 

first handlers and importers are subject 

to assessments. Funds to administer the 

Order are derived from such 

assessments. It is intended that the 

assessment rate of $0.0125 per pound 

will be applicable for all assessable 

honey for the period from January 1 

through December 31, 2015, and that the 

rate of $0.015 per pound will be 

applicable to all assessable honey 

beginning on January 1, 2016, and 

continue until amended, suspended, or 

terminated. 

Under section 519 of the 1996 Act (7 

U.S.C. 7418), 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 amends the Order to 

increase the assessment rate from $0.01 

to $0.015 per pound on honey and 

honey products over a two-year period. 

The Order limits an increase in the 

assessment rate to no more than onequarter cent per pound per year. Thus, 

the rate will increase to $0.0125 per 

pound for the period January 1 through 

December 31, 2015, and to $0.015 per 

pound on and after January 1, 2016. The 

Order is administered by the Board with 

oversight by USDA. Under the program, 

assessments are collected from first 

handlers and importers and used for 

research and promotion projects 

designed to maintain and expand the 

market for honey and honey products in 

the United States and abroad. 

Additional funds will enable the Board 

to expand its production research 

activities and promotional efforts. The 

Board’s production research focuses on 

maintaining the health of honey bee 

colonies. Promotional efforts focus on 

the innovative ways to market, promote, 

and utilize honey and honey products. 

Increasing demand for honey and honey 

products will benefit the honey industry 

as a whole. This action was 

unanimously recommended by the 

Board. 

The Order specifies that the funds to 

cover the Board’s expenses shall be paid 

from assessments on first handlers and 

importers, donations from persons not 

subject to assessments, and from other 

funds available to the Board. First 

handlers are required to file reports and 

maintain records on the total quantity of 

honey and honey products acquired 

during the reporting period, the quantity 

of honey processed for sale from the 

handler’s own production, and the 

quantity of honey purchased from a 

handler or importer responsible for 

paying the assessment due. Importers 

are required to report the total quantity 

of honey and honey products imported 

during each reporting period, and keep 

a record of each lot of honey and honey 

products imported during such period, 

including the quantity, date, country of 

origin, and port of entry. Importers are 

responsible for paying assessments to 

the Board on honey and honey products 

imported into the United States through 

the U.S. Customs and Border Protection 

(Customs). The Order also provides for 

two exemptions. First handlers who 

handle less than 250,000 pounds and 

importers who import less than 250,000 

pounds of honey and honey products 

annually, and first handlers and 

importers of 100 percent organic honey 

and honey products are exempt from the 

payment of assessments. 

Section 1212.52 of the Order specifies 

that assessments shall be levied at a rate 

of $0.01 per pound on all honey and 

honey products. The Board may 

recommend to the Secretary an increase 

or decrease in the assessment as it 

deems appropriate by at least a twothirds vote of members present at a 

meeting of the Board. The Board may 

not recommend an increase in the 

assessment of more than $0.02 per 

pound of honey or honey products and 

may not increase the assessment by 

more than $0.0025 in any single fiscal 

year. 

The $0.01 per pound assessment rate 

has been in effect since the Order’s 

inception in 2008. The Board’s fiscal 

year runs from January 1 through 

December 31. Board expenditures have 

ranged from $4,157,250 for its first full 

year in 2009 to $4,556,490 in 2013. 

Expenditures for research have ranged 

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Federal Register / Vol. 80, No. 77 / Wednesday, April 22, 2015 / Rules and Regulations 22363 

from $465,579 in 2009 (11 percent of 

total expenses) to $231,234 in 2013 (5 

percent of total expenses). Board 

expenditures for health messaging and 

promotion activities have ranged from 

$2,311,370 in 2009 (56 percent of total 

expenses) to $2,859,743 in 2013 (63 

percent of total expenses). Pursuant to 

section 1212.50(h) of the Order, 

administrative expenditures have been 

less than 15 percent of the assessments 

and other income received by the Board 

annually. 

Board assessment income has ranged 

from $3,345,543 in 2009 ($2,085,204 in 

domestic assessments and $1,260,339 in 

import assessments) to $4,443,798 in 

2013 ($1,122,390 in domestic 

assessments and $3,321,408 in import 

assessments). Additionally, pursuant to 

section 1212.54 of the Order, the Board 

maintains a monetary reserve with 

funds that do not exceed one fiscal 

period’s budget. 

Board 2014 Recommendation 

The Board held a teleconference on 

January 23, 2014, and unanimously 

recommended increasing its assessment 

rate from $0.01 to $0.015 per pound on 

honey and honey products over a twoyear period. The Order limits an 

increase in the assessment rate to no 

more than one-quarter cent per pound 

per year. Thus, the rate will increase to 

$0.0125 per pound for the period 

January 1 through December 31, 2015, 

and to $0.015 per pound on and after 

January 1, 2016. Additional funds will 

enable the Board to expand its 

production research activities and 

promotional efforts. Since the program’s 

inception, the Board has funded several 

production research projects focused on 

maintaining the health of honey bee 

colonies. The honey industry continues 

to experience considerable production 

challenges associated with the Colony 

Collapse Disorder. The honey industry 

has attempted to halt the long term 

decline in the numbers of honeybees 

(over 30 percent in the past twenty 

years) through treatment, colony 

development, maintenance, and 

replacement. The funds generated by an 

assessment increase will be spent on 

conducting research activities designed 

to address these critical issues. Per 

section 1212.50(a) of the Order, five 

percent (5 percent) of the Board’s 

anticipated revenue from assessments 

each fiscal period is to be allocated 

towards production research and 

research related to the production of 

honey. A possible one to two million 

dollar increase in assessment revenue 

would generate an additional $50,000 to 

$100,000 for production research. 

Furthermore, the Board also conducts 

research relating to various health and 

beauty issues, including alternative uses 

for honey. However, most of these 

preliminary findings have been done 

under laboratory conditions. Additional 

funds will allow the Board to 

incorporate specific areas of research 

into expanded clinical (human) trials. 

Clinical trials are important for the 

industry to be able to make health 

claims consistent with Federal Trade 

Commission and Food and Drug 

Administration requirements. 

The Board uses health information in 

its promotion messaging to help build 

demand for honey and honey products. 

Worldwide honey production has grown 

from 357 million pounds in 2009 to 487 

million pounds in 2013. Increasing 

demand will help move the growing 

supply of honey, which in turn will 

assist the Board in reaching its goal to 

continually increase consumption 

among existing honey and honey 

product consumers and to attract new 

honey and honey product users. 

At the increased assessment rate on 

honey and honey products, with 

assessable pounds averaging 450 million 

per year, assessment income could 

reach $5.6 million in 2015 and $6.8 

million in 2016. This increase could be 

used for research and promotion 

projects designed to maintain and 

expand the market for honey and honey 

products in the United States and 

abroad. As an example, if 5 percent of 

the budget was allocated to production 

research and 60 percent was allocated to 

promotion, funds available for 

production research could average 

approximately $340,000 annually, up 

from $231,234 in 2013, and funds 

available for health messaging and 

promotion could average $4.0 million 

annually, up from $2.8 million in 2013. 

In light of the need to allocate more 

funds towards production and health 

research activities and build demand for 

honey, the Board recommended 

increasing the assessment rate under the 

Order from $0.01 to $0.015 per pound 

on honey and honey products over a 

two-year period. The Order limits an 

increase in the assessment rate to no 

more than one-quarter cent per year. 

Thus, the rate will increase to $0.0125 

per pound for the period January 1 

through December 31, 2015, and to 

$0.015 per pound on and after January 

1, 2016. Section 1212.52 of the Order is 

amended accordingly. 

Paragraph (e) of section 1212.52 is 

also revised to clarify that the 

assessment rate applies not only to the 

listed Harmonized Tariff Schedule of 

the United States (HTSUS) numbers, but 

also any other numbers that may be 

used to identify honey or honey 

products in the event the HTSUS 

numbers change; this change has no 

impact on the assessment rate. 

Section 1212.71 of the Order is also 

revised to change the length of time that 

books and records are to be held from 

two years to three years. This change 

conforms with the Board’s compliance 

procedures, which provide that the 

Board conduct audit reviews every three 

years. Section 1212.53 of the Order is 

revised to state that exemptions from 

assessments for a calendar year are 

effective on the date approved by the 

Board. This change is being made to 

clarify exemption requirements. These 

changes pose no additional information 

collection burden on honey first 

handlers and importers. 

Final 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 considered the 

economic impact of this action on such 

entities. 

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 (first 

handlers and importers) as those having 

annual receipts of no more than $7.0 

million. 

There are 661 importers and 42 first 

handlers of honey and honey products 

covered under the program. Seventeen 

out of the 42 first handlers (40 percent) 

and 21 out of the 661 importers (3 

percent) accounted for 90 percent of the 

assessments in their respective 

categories. Total assessments for 2013 

were $4.44 million, of which $1.12 

million (25 percent) came from first 

handlers and $3.32 million (75 percent) 

was paid by importers. This data can be 

used to compute an estimate of average 

annual revenue from honey sales from 

each of these categories, which in turn 

helps to estimate the number of large 

and small first handlers and importers. 

As mentioned above, 17 first handlers 

account for 90 percent of the domestic 

assessments. Multiplying first handler 

assessments in 2013 of $1,122,390 by 

0.9 and then dividing by 17 yields an 

average annual assessment of $59,421 

for the first handlers in this category. 

Dividing the assessment rate of one cent 

per pound yields an average quantity 

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22364 Federal Register / Vol. 80, No. 77 / Wednesday, April 22, 2015 / Rules and Regulations 

1Honey, March 2014, USDA, National 

Agricultural Statistics Service, p. 3 

per first handler of 5.942 million 

pounds. Multiplying 5.942 million 

pounds by the average 2013 U.S. 

domestic price 1 of $2.12 per pound 

yields an average, annual honey revenue 

per packer of $12.60 million, which is 

well above the SBA threshold of $7.0 

million. It should be noted that this 

revenue estimate is based on the average 

price at the producer level, and the 

$12.6 million is an estimate of the total 

value at which the average size packer 

acquired the honey from producers. 

Therefore most of the 17 first handlers 

that pay 90 percent of the domestic 

assessments are likely to be large firms 

according to the SBA definition. 

An equivalent computation can be 

made for the 21 importers who paid 90 

percent of the $3,321,408 in assessments 

in 2013. Of the 21 importers, the average 

assessment per importer was $142,346. 

Dividing the average assessment per 

importer by the assessment rate of $0.01 

per pound yield an average quantity per 

importer estimate of 14.235 million 

pounds. 

For honey imports, the equivalent of 

the season average price for domestic 

honey is referred to as a ‘‘unit value.’’ 

The unit value of $1.42 per pound is 

computed by dividing annual imported 

honey value of $480.25 million by 

average quantity of 337.05 million 

pounds (import data from the U.S. 

Census Bureau). Multiplying the $1.42 

unit value by the average quantity of 

14.235 million pounds yields average 

annual honey revenue per importer 

figure of $20.21 million, nearly three 

times the SBA threshold figure of $7.0 

million for a large firm. Therefore the 

majority of the 21 importers that pay 90 

percent of the assessments are large 

firms, according to the SBA definition. 

Comparable computations can be 

made to determine the average 2013 

honey revenue for the 25 first handlers 

and 640 importers that paid 10 percent 

of the assessments in the first handler 

and importer categories. The first 

handler and importer average annual 

honey revenue figures are 

approximately $950,000 and $75,000, 

respectively, indicating that the vast 

majority are small businesses (in terms 

of honey sales), under the SBA large 

business threshold of $7.0 million in 

annual sales. 

Based on the foregoing, the majority 

of first handlers and importers may be 

classified as small entities. 

This final rule amends section 

1212.52 of the Order to increase the 

assessment rate from $0.01 to $0.015 per 

pound (an increase of $0.0025 per 

pound per year over a two-year period). 

The Order is administered by the Board 

with oversight by USDA. Under the 

program, assessments are collected from 

first handlers and importers and used 

for research and promotion projects 

designed to maintain and expand the 

market for honey and honey products in 

the United States and abroad. 

Additional funds will enable the Board 

to expand its production research 

activities and promotional efforts. The 

Board uses its health information in its 

promotion messaging to help build 

demand. Increasing demand will help 

move the growing supply of honey and 

honey products, which will benefit 

producers, importers, first handlers, and 

consumers. Authority for this action is 

provided in section 1212.52(f) of the 

Order and section 517 of the 1996 Act. 

Two additional sections of the Order 

are also revised. Section 1212.71 of the 

Order is revised to change the length of 

time that books and records are to be 

held from two years to three years. This 

change conforms to the Board’s 

compliance procedures, which instructs 

the Board to conduct audit reviews 

every three years. Section 1212.53 of the 

Order is revised to state that exemptions 

from assessments for a calendar year are 

effective on the date approved by the 

Board. This change is being made to 

clarify exemption requirements. These 

changes pose no additional information 

collection burden on honey first 

handlers and importers. 

Regarding the economic impact of the 

final rule on affected entities, this action 

increases the assessment obligation on 

first handlers and importers. While 

assessments impose additional costs on 

first handlers and importers, the costs 

are minimal and uniform on all. The 

costs will also be offset by the benefits 

derived from the operation of the 

program. It is estimated that 42 first 

handlers and 661 importers pay 

assessments under the program. 

There has been one economic study 

conducted since the Order’s inception 

that evaluated the effectiveness of the 

Board’s promotion program. The study 

was conducted by Dr. Ronald M. Ward 

at the University of Florida in 2014 and 

titled ‘‘Honey Demand and the Impact 

of the National Honey Board’s Generic 

Promotion Program.’’ This study may be 

obtained from http:// 

www.ams.usda.gov/. The 2014 study 

included data from 1987 through 2012, 

and evaluated the effectiveness of the 

former Honey Research, Promotion, and 

Consumer Information Order, and the 

current honey marketing program. The 

earlier honey program operated from 

1986 through 2008, as a producer 

program. The earlier program was 

replaced in 2008 with the current 

packer and importer program; producers 

are no longer directly subject to the 

mandatory assessment. Otherwise, the 

two programs are similar, including the 

administrative and operational 

oversight. 

The purpose of the economic study 

was twofold: (1) To determine the 

market implications of the Board’s 

promotion program and (2) to determine 

a return-on-investment (rate of return) 

for the promotion activities conducted 

by the Board. 

To evaluate the effectiveness of the 

Board’s domestic promotion activities, 

econometric models were developed for 

each of two distinct honey market 

segments: manufacturing (honey used as 

an ingredient) and non-manufacturing 

(table honey). The models measured the 

impact of the Board’s annual promotion 

expenditures while taking into account 

the impact of other factors that 

influence demand. 

For the non-manufacturing model, the 

other factors were domestic supplies of 

honey, personal income, and the 

historical support price for honey. For 

the manufacturing model, the other 

factors were the quantity of sugar used 

in food manufacturing (as a proxy 

measure of the overall demand for 

sweeteners, including honey), and a 

variable which captured the structural 

change in the honey market that began 

in 2007, when the market share of 

honey imports began to increase 

significantly. The manufacturing model 

using Board expenditure lagged one 

year because Board promotion 

expenditure in the prior year was found 

to have the most significant impact on 

honey manufacturing demand in the 

current year. 

Due to differences in data availability, 

the manufacturing model covered the 

time period of 1965 through 2012 and 

the non-manufacturing model spanned 

1987 through 2012. 

The econometric models used 

statistical methods to analyze annual 

data over these time periods and 

measure how strongly the various honey 

demand factors affect (a) the quantity of 

honey as an ingredient (manufacturing 

model) and (b) the price for table honey 

(non-manufacturing model). In both 

models, Board program expenditures 

were found to have a positive and 

statistically significant impact on 

demand. The models had reasonably 

strong explanatory power, with 80 

percent of the variation in quantity 

demanded explained by the 

independent variables in the 

manufacturing model, and 89 percent of 

the variation in price explained by the 

non-manufacturing model variables. 

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Federal Register / Vol. 80, No. 77 / Wednesday, April 22, 2015 / Rules and Regulations 22365 

The return on investment (ROI) for 

honey promotion was obtained by 

dividing the increased value of honey 

sales (for the two market segments 

combined) by Board program 

expenditures. The ROI for Board 

programs for the period 1987 to 2012 

was 14.12, meaning $14.12 in returns 

(increased honey value) for every $1 

spent on promotion. The results were 

similar for 2008 through 2012, the 

period covered by the new program 

funded by honey first handlers and 

importers. 

An additional step in assessing 

promotional program effectiveness was 

to analyze the potential impact of 

alternative honey promotion spending 

levels. The two demand models were 

used to simulate gains for various 

percentages of actual 2012 promotional 

expenditures. The results show a range 

of increased honey demand impacts 

from increased spending, depending on 

alternative assumptions about the level 

of honey price and honey quantity. The 

simulation results suggest that a 50 

percent increase in Board promotional 

expenditure would yield an additional 

$29 million in honey sales, if quantity 

demanded increased, but prices stayed 

the same. Alternatively, crop value 

would increase $44 million if prices 

went up, but quantity stayed the same. 

Returns on investment were 14 to 1 or 

higher over this range of alternative 

assumptions about market conditions. 

These results were similar to the ROI 

cited earlier. Focusing on 2012 

illustrates the effectiveness of the 

program under the funding mechanism 

that began in 2008. 

In accordance with the Paperwork 

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

Chapter 35), the information collection 

and recordkeeping requirements that are 

imposed by the Order have been 

approved previously under OMB 

control number 0581–0093. This final 

rule does not change the information 

collection and recordkeeping 

requirements previously approved and 

imposes no additional reporting and 

recordkeeping burden on honey first 

handlers and importers. 

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 final 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. 

The Board has been considering an 

increase in the assessment rate since 

2011. The Board explored the need and 

justification for an increase as well as 

obtained feedback from the Board’s 

stakeholders. Additionally, beginning in 

2011, the Board has done extensive 

outreach to include presentations, 

handouts, and industry meeting 

attendance. As an alternative to an 

assessment rate increase, the Board 

considered cutting programs. The Board 

reduced honey research in order to 

maintain marketing programs and 

considered cutting additional marketing 

programs. However, after further 

analysis, it was determined that 

additional cuts would hurt the program. 

In late 2013, the Board presented the 

proposed assessment increase to the 

various honey associations. Ultimately, 

at its January 2014 meeting, the Board 

unanimously recommended increasing 

the assessment rate to $0.0125 per 

pound for the first year (January 1 

through December 31, 2015) and to 

$0.015 per pound for the second year 

and beyond (on and after January 1, 

2016). 

A proposed rule concerning this 

action was published in the Federal 

Register on November 18, 2014 (79 FR 

68636). The Board included 

notifications about the proposed rule in 

its newsletters and also mailed related 

information to honey packers and 

importers. Finally, the proposal was 

made available through the Internet by 

USDA and the Office of the Federal 

Register. A 30-day comment period 

ending December 18, 2014, was 

provided to allow interested persons to 

submit comments. 

Analysis of Comments 

Three comments were received in 

response to the proposed rule; two 

supported the increase, and one 

opposed the action. The two comments 

which supported increasing the 

assessment rate stated that the 

additional funds would allow the Board 

to expand its programs to promote the 

benefits of honey and honey products 

and develop new products that contain 

honey as a key ingredient. A commenter 

further stated that honey and honey 

bees are important to agriculture and the 

environment. 

The commenter in opposition to the 

proposal did not see the need to 

increase the assessment rate by 50 

percent. The commenter stated that 

honey assessments have increased over 

the years because honey consumption 

has increased. The commenter opined 

that any increase in the honey budget 

should come from increased honey sales 

rather than increasing the assessment 

rate. USDA concurs that an increase in 

honey sales and consumption will 

increase Board income. However, 

maintaining the current $0.01 per 

pound assessment rate will not generate 

the amount of funds necessary to fund 

additional production research, human 

clinical trials, and conduct promotion 

activities needed to continue to build 

demand to move the growing supply of 

honey and honey products. Thus, no 

changes have been made to the rule 

based on this comment. 

After consideration of all relevant 

matters presented, including the 

information and recommendation 

submitted by the Board and other 

available information, it is hereby found 

that this rule, as hereinafter set forth, is 

consistent with and will effectuate the 

purposes of the 1996 Act. 

List of Subjects in 7 CFR Part 1212 

Administrative practice and 

procedure, Advertising, Consumer 

information, Honey Packer and importer 

promotion, Marketing agreements, 

Reporting and recordkeeping 

requirements. 

For the reasons set forth in the 

preamble, part 1212, Chapter XI of Title 

7 is amended as follows: 

PART 1212—HONEY PACKERS AND 

IMPORTERS RESEARCH, 

PROMOTION, CONSUMER 

EDUCATION AND INDUSTRY 

INFORMATION ORDER 

■ 1. The authority citation for 7 CFR 

part 1212 continues to read as follows: 

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

7401. 

■ 2. In § 1212.52, paragraphs (a), (b), (c), 

(d), and (e) are revised to read as 

follows: 

§ 1212.52 Assessments. 

(a) The Board will cover its expenses 

by levying in a manner prescribed by 

the Secretary an assessment on first 

handlers and importers. For the period 

January 1 through December 31, 2015, 

the assessment rate shall be $0.0125 per 

pound of assessable honey and honey 

products. On and after January 1, 2016, 

the assessment rate shall be $0.015 per 

pound of assessable honey and honey 

products. 

(b) Each first handler shall pay the 

assessment to the Board on all 

domestically produced honey or honey 

products the first handler handles. A 

producer shall pay the Board the 

assessment on all honey or honey 

products for which the producer is the 

first handler. 

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22366 Federal Register / Vol. 80, No. 77 / Wednesday, April 22, 2015 / Rules and Regulations 

(c) Each first handler responsible for 

remitting assessments shall remit the 

amounts due to the Board’s office on a 

monthly basis no later than the fifteenth 

day of the month following the month 

in which the honey or honey products 

were marketed. 

(d) Each importer shall pay an 

assessment to the Board on all honey or 

honey products the importer imports 

into the United States. An importer 

shall pay the assessment to the Board 

through the United States Customs and 

Border Protection (Customs) when the 

honey or honey products being assessed 

enters the United States. If Customs 

does not collect an assessment from an 

importer, the importer is responsible for 

paying the assessment to the Board. 

(e) The import assessment 

recommended by the Board and 

approved by the Secretary shall be 

uniformly applied to imported honey or 

honey products that are identified as 

HTS heading numbers 0409.00.00 and 

2106.90.9988 by the Harmonized Tariff 

Schedule of the United States or any 

other numbers used to identify honey or 

honey products. 

* * * * * 

■ 3. In § 1212.53, paragraph (d) is 

revised to read as follows: 

§ 1212.53 Exemption from assessment. 

* * * * * 

(d) Upon receipt of an application, the 

Board shall determine whether an 

exemption may be granted. The Board 

will then issue, if deemed appropriate, 

a certificate of exemption to each person 

who is eligible to receive one. The 

exemption is effective when approved 

by the Board. It is the responsibility of 

these persons to retain a copy of the 

certificate of exemption. 

* * * * * 

■ 4. Section 1212.71 is revised to read 

as follows: 

§ 1212.71 Book and records. 

Each first handler and importer, 

including those who are exempt under 

this subpart, must maintain any books 

and records necessary to carry out the 

provisions of this part, and any 

regulations issued under this part, 

including the books and records 

necessary to verify any required reports. 

Books and records must be made 

available during normal business hours 

for inspection by the Board’s or 

Secretary’s employees or agents. A first 

handler or importer must maintain the 

books and records for three years 

beyond the fiscal period to which they 

apply. 

Dated: April 16, 2015. 

Rex A. Barnes, 

Associate Administrator. 

[FR Doc. 2015–09292 Filed 4–21–15; 8:45 am] 

BILLING CODE 3410–02P 

DEPARTMENT OF ENERGY 

Federal Energy Regulatory 

Commission 

18 CFR Part 2 

[Docket No. PL15–1–000] 

Cost Recovery Mechanisms for 

Modernization of Natural Gas Facilities 

AGENCY: Federal Energy Regulatory 

Commission, Energy. 

ACTION: Policy statement. 

SUMMARY: In this Policy Statement, the 

Commission provides greater certainty 

regarding the ability of interstate natural 

gas pipelines to recover the costs of 

modernizing their facilities and 

infrastructure to enhance the efficient 

and safe operation of their systems. The 

Policy Statement explains the standards 

the Commission will require interstate 

natural gas pipelines to satisfy in order 

to establish simplified mechanisms, 

such as trackers or surcharges, to 

recover certain costs associated with 

replacing old and inefficient 

compressors and leak-prone pipes and 

performing other infrastructure 

improvements and upgrades to enhance 

the efficient and safe operation of their 

pipelines. 

DATES: This Policy Statement will 

become effective October 1, 2015. 

FOR FURTHER INFORMATION CONTACT: 

Monique Watson (Technical 

information), Office of Energy Markets 

Regulation, Federal Energy Regulatory 

Commission, 888 First Street NE., 

20426, Telephone: (202) 502–8384, 

Monique.Watson@ferc.gov. 

David E. Maranville (Legal Information), 

Office of the General Counsel, Federal 

Energy Regulatory Commission, 888 

First Street NE., 20426, Telephone: 

(202) 502–6351, David.Maranville@

ferc.gov. 

TABLE OF CONTENTS 

Paragraph 

Nos. 

I. Background ................................................................................................................................................................................ 4 

A. Safety and Environmental Initiatives .............................................................................................................................. 4 

B. Existing Policy .................................................................................................................................................................. 11 

C. Proposed Policy Statement .............................................................................................................................................. 19 

D. Comments ......................................................................................................................................................................... 22 

II. Discussion ................................................................................................................................................................................ 25 

A. Adoption of Policy Statement ......................................................................................................................................... 25 

B. Standards for Modernization Cost Trackers or Surcharges ............................................................................................ 44 

1. Review of Existing Rates ........................................................................................................................................... 45 

2. Defined Eligible Costs ................................................................................................................................................ 54 

3. Avoidance of Cost Shifting ........................................................................................................................................ 72 

4. Periodic Review of the Surcharge ............................................................................................................................. 83 

5. Shipper Support ......................................................................................................................................................... 90 

C. Additional Questions on Which the Commission Sought Comments .......................................................................... 95 

1. Accelerated Amortization .......................................................................................................................................... 96 

2. Reservation Charge Crediting .................................................................................................................................... 101 

3. Other Issues ................................................................................................................................................................ 110 

III. Information Collection Statement .......................................................................................................................................... 119 

IV. Document Availability ........................................................................................................................................................... 132 

V. Effective Date and Congressional Notification ....................................................................................................................... 135 

1. On November 20, 2014, the 

Commission issued a Proposed Policy 

Statement and sought comments 

regarding potential mechanisms for 

interstate natural gas pipelines to use to 

recover the costs of modernizing their 

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