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

60117 

Vol. 79, No. 193 

Monday, October 6, 2014 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Parts 948 and 980 

[Doc. No. AMS–FV–13–0073; FV13–948–3 

PR] 

Irish Potatoes Grown in Colorado and 

Imported Irish Potatoes; Relaxation of 

the Handling Regulation for Area No. 2 

and Import Regulations 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Proposed rule. 

SUMMARY: This proposed rule invites 

comments on a revision to the minimum 

quantity exception for potatoes handled 

under the Colorado potato marketing 

order, Area No. 2 (order). The order 

regulates the handling of Irish potatoes 

grown in Colorado and is administered 

locally by the Colorado Potato 

Administrative Committee, Area No. 2 

(Committee). This action would increase 

the quantity of potatoes that may be 

handled under the order without regard 

to the order’s handling regulation 

requirements from 1,000 to 2,000 

pounds. The change in the import 

regulation is required under section 8e 

of the Agricultural Marketing 

Agreement Act of 1937. This action 

would allow the importation which, in 

the aggregate, does not exceed 2,000 

pounds for all other round type 

potatoes, except red skinned, round 

type or long type potatoes that continue 

to remain at a 500 pound limit, to be 

imported without regard to the import 

regulations. This action is expected to 

benefit producers, handlers, and 

importers. 

DATES: Comments must be received by 

December 5, 2014. 

ADDRESSES: Interested persons are 

invited to submit written comments 

concerning this proposal. Comments 

must be sent to the Docket Clerk, 

Marketing Order and Agreement 

Division, Fruit and Vegetable Program, 

AMS, USDA, 1400 Independence 

Avenue SW., STOP 0237, Washington, 

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

Internet: http://www.regulations.gov. All 

comments should reference the 

document number and the date and 

page number of this issue of the Federal 

Register and will be made 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 proposal 

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 

comments will be made public on the 

internet at the address provided above. 

FOR FURTHER INFORMATION CONTACT: Sue 

Coleman, Marketing Specialist, or Gary 

D. Olson, Regional Director, Northwest 

Marketing Field Office, Marketing Order 

and Agreement Division, Fruit and 

Vegetable Program, AMS, USDA; 

Telephone: (503) 326–2724, Fax: (503) 

326–7440, or Email: Sue.Coleman@

ams.usda.gov or GaryD.Olson@

ams.usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Jeffrey Smutny, 

Marketing Order and Agreement 

Division, Fruit and Vegetable Program, 

AMS, USDA, 1400 Independence 

Avenue SW., STOP 0237, Washington, 

DC 20250–0237; Telephone: (202) 720– 

2491, Fax: (202) 720–8938, or Email: 

Jeffrey.Smutny@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This 

proposed rule is issued under Marketing 

Agreement No. 97 and Order No. 948, 

both as amended (7 CFR part 948), 

regulating the handling of Irish potatoes 

grown in Colorado, 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.’’ 

This proposed rule is also issued 

under section 8e of the Act, which 

provides that whenever certain 

specified commodities, including Irish 

potatoes, are regulated under a Federal 

marketing order, imports of these 

commodities into the United States are 

prohibited unless they meet the same or 

comparable grade, size, quality, or 

maturity requirements as those in effect 

for the domestically produced 

commodities. 

The Department of Agriculture 

(USDA) is issuing this proposed rule in 

conformance with Executive Orders 

12866, 13563, and 13175. 

This proposed rule has been reviewed 

under Executive Order 12988, Civil 

Justice Reform. This proposed rule is 

not intended to have retroactive effect. 

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. A 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. 

There are no administrative 

procedures which must be exhausted 

prior to any judicial challenge to the 

provisions of import regulations issued 

under section 8e of the Act. 

This proposal invites comments on a 

revision to the minimum quantity 

exception currently prescribed in the 

handling regulation for potatoes 

handled under the order. This proposal 

would increase the quantity of potatoes 

that may be handled without regard to 

the order’s handling regulation from 

1,000 to 2,000 pounds. Relaxing the 

minimum quantity exception is 

expected to benefit producers, handlers, 

and importers. The rule was 

unanimously recommended by the 

Committee at a meeting on July 18, 

2013. 

Section 948.4 of the order divides the 

State of Colorado into three areas of 

regulation for marketing order purposes. 

These areas include: Area No. 1, 

commonly known as the Western Slope; 

Area No. 2, commonly known as San 

Luis Valley; and, Area No. 3, which 

consists of the remaining producing 

areas within the State of Colorado not 

included in the definition of Area No. 

1 or Area No. 2. Currently, the order 

only regulates the handling of potatoes 


tkelley on DSK3SPTVN1PROD with PROPOSALS
60118 Federal Register / Vol. 79, No. 193 / Monday, October 6, 2014 / Proposed Rules 

produced in Area No. 2 and Area No. 3. 

Regulation for Area No. 1 has been 

suspended. 

Section 948.50 of the order establishes 

committees as administrative agencies 

for each of the areas set forth under 

§ 948.4. Section 948.22(a) of the order 

authorizes the issuance of grade, size, 

quality, maturity, pack, and container 

regulations for potatoes grown in the 

order’s production area. Further, section 

948.22(b)(2) of the order provides 

authority for each area committee to 

recommend modification of regulations 

to provide for minimum quantities that 

should be relieved of regulatory or 

administrative obligations. 

Section 948.386 of the order’s 

administrative rules prescribes grade, 

size, maturity, and inspection 

requirements for Colorado Area No. 2 

potatoes. Paragraph (f) of that section 

prescribes the minimum quantity of 

potatoes that are exempt from 

regulation. Currently, each person may 

handle up to 1,000 pounds of potatoes 

without regard to the order’s grade, size, 

maturity, and inspection requirements. 

At its meeting on July 18, 2013, the 

Committee unanimously recommended 

increasing the order’s minimum 

quantity exception from 1,000 to 2,000 

pounds. The recommendation was made 

at the request of producers and handlers 

who wanted greater flexibility in 

distributing smaller quantities of 

potatoes. In its deliberations, the 

Committee commented that 2,000 

pounds is consistent with the current 

weight of a pallet of potatoes. One pallet 

is typically the smallest lot of potatoes 

distributed, since most delivery vehicles 

are now capable of transporting at least 

2,000 pounds. 

Handlers also feel that the value of 

one pallet of potatoes does not warrant 

the cost of complying with the order’s 

regulations. Based on an estimated 

average f.o.b. price of $12.60, the value 

of one pallet of potatoes is 

approximately $225.00. Increasing the 

minimum quantity exception from 1,000 

to 2,000 pounds of potatoes would 

allow a handler to ship one pallet of 

potatoes without regard to the order’s 

grade, size, maturity, and inspection 

requirements. Relaxing the minimum 

quantity is expected to benefit 

producers, handlers, and importers. 

Section 8e of the Act provides that 

when certain domestically produced 

commodities, including Irish potatoes, 

are regulated under a Federal marketing 

order, imports of that commodity must 

meet the same or comparable grade, 

size, quality, and maturity requirements. 

Whenever two or more marketing orders 

regulating the same commodity 

produced in different areas of the 

United States are concurrently in effect, 

the importation into the United States of 

any such commodity shall be prohibited 

unless it complies with the grade, size, 

quality and maturity provisions of the 

order which, as determined by the 

Secretary of Agriculture, regulates the 

commodity produced in the area with 

which the imported commodity is in 

most direct competition (7 U.S.C. 608e– 

(a)). Section 980.1(b)(2) of the Vegetable 

Import Regulations specifies that 

potatoes imported into the United States 

are in most direct competition with 

potatoes of the same type produced in 

the area covered by this order. Since 

this action would increase the minimum 

quantity exemption under the domestic 

handling regulations, a corresponding 

change to the import regulations must 

also be considered. 

Minimum grade, size, quality, and 

maturity requirements for Irish potatoes 

imported into the United States are 

currently in effect under § 980.1 (7 CFR 

980.1). The minimum quantity 

exemption is specified in § 980.1(c). The 

exemption for red skinned, round type 

or long type potatoes would remain at 

a 500 pound limit. This proposal would 

increase the quantity for all other round 

type potatoes that may be imported 

without regard to the import regulation 

requirements from 1,000 to 2,000 

pounds. The metric equivalent for 1,000 

pounds is 453.592 kilograms and 2,000 

pounds is 907.185 kilograms. The 

increase in the minimum quantity 

exemption for imports of potatoes 

would have a beneficial impact on 

importers. This proposed rule would 

provide flexibility in the importation 

and distribution of smaller quantities of 

potatoes. 

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 

action on small entities. Accordingly, 

AMS has prepared this initial regulatory 

flexibility analysis. 

The purpose of the RFA is to fit 

regulatory actions to the scale of 

businesses subject to such actions in 

order that small businesses will not be 

unduly or disproportionately burdened. 

Marketing orders issued pursuant to the 

Act, and rules issued thereunder, are 

unique in that they are brought about 

through group action of essentially 

small entities acting on their own 

behalf. Import regulations issued under 

the Act are based on those established 

under Federal marketing orders. 

There are approximately 80 handlers 

of Colorado Area No. 2 potatoes subject 

to regulation under the order and 

approximately 180 producers in the 

regulated production area. There are 

approximately 240 importers of 

potatoes. Small agricultural service 

firms (handlers and importers) are 

defined by the Small Business 

Administration (SBA) as those having 

annual receipts of less than $7,000,000, 

and small agricultural producers are 

defined as those having annual receipts 

of less than $750,000 (13 CFR 121.201). 

During the 2011–2012 fiscal period, 

the most recent for which statistics are 

available, 15,072,963 hundredweight of 

Colorado Area No. 2 potatoes were 

inspected under the order and sold into 

the fresh market. Based on an estimated 

average f.o.b. price of $12.60 per 

hundredweight, the Committee 

estimates that 66 Area No. 2 handlers, 

or about 83 percent, had annual receipts 

of less than $7,000,000. In view of the 

foregoing, the majority of Colorado Area 

No. 2 potato handlers may be classified 

as small entities. 

In addition, based on information 

provided by the National Agricultural 

Statistics Service, the average producer 

price for the 2011 Colorado fall potato 

crop was $10.70 per hundredweight. 

Multiplying $10.70 by the shipment 

quantity of 15,072,963 hundredweight 

yields an annual crop revenue estimate 

of $161,280,704. The average annual 

fresh potato revenue for each of the 180 

Colorado Area No. 2 potato producers is 

therefore calculated to be approximately 

$896,000 ($161,280,704 divided by 180), 

which is greater than the SBA threshold 

of $750,000. Consequently, on average, 

many of the Colorado Area No. 2 potato 

producers may not be classified as small 

entities. 

Information from the Foreign 

Agricultural Service, USDA, indicates 

that the dollar value of imports of the 

type of potatoes affected by this rule 

ranged from approximately $55.8 

million in 2009 to $ 56.5 million in 

2013. Using these values, the majority of 

importers of the type of potatoes 

affected by this rule would have annual 

receipts of less than $7,000,000 and may 

be classified as small entities. 

Canada is the major potato-producing 

country exporting potatoes to the United 

States. In 2013, affected shipments of 

potatoes imported into the United States 

totaled around 3,479,468 

hundredweight. Of that amount, 

3,479,383 hundredweight were 

imported from Canada, 59 

hundredweight were imported from 

Ecuador, and 26 hundredweight were 

imported from Peru. 

This proposal would revise the 

quantity of potatoes that may be 

handled without regard to the 


tkelley on DSK3SPTVN1PROD with PROPOSALS
Federal Register / Vol. 79, No. 193 / Monday, October 6, 2014 / Proposed Rules 60119 

requirements of § 948.386(a), (b), and (c) 

of the order from 1,000 to 2,000 pounds 

and makes a corresponding change to 

the potato import regulation. At the July 

18, 2013 meeting, the Committee 

unanimously recommended increasing 

the minimum quantity exception to be 

consistent with the approximate weight 

of one pallet of potatoes. Authority for 

the establishment and modification of a 

minimum quantity exception is 

provided in § 948.22(b)(2) of the order. 

This proposed rule amends the 

provisions in §§ 948.386(f) and 980.1(c). 

The change in the import regulation is 

required under section 8e of the Act. 

This action is not expected to increase 

the costs associated with the order’s 

requirements or the potato import 

regulation. Rather, it is anticipated that 

this proposed change will have a 

beneficial impact. The Committee 

believes it would provide greater 

flexibility in the distribution of small 

quantities of potatoes. Currently, the 

distribution of potatoes between 1,000 

and 2,000 pounds requires an 

inspection and certification that the 

product conforms to the grade, size, and 

maturity requirements of the order. This 

translates into a cost for handlers and 

importers of both time and inspection 

fees, which is high in relation to the 

small value (approximately $225.00 per 

pallet) of these transactions. This action 

would allow shipments up to 2,000 

pounds of potatoes without regard to the 

order’s grade, size, maturity, and 

inspection requirements and the related 

costs. The benefits for this proposed 

rule are expected to be equally available 

to all fresh potato producers, handlers, 

and importers, regardless of their size. 

As an alternative to the proposal, the 

Committee discussed leaving the 

handling regulation unchanged. The 

Committee rejected this idea because a 

pallet of potatoes weighs approximately 

2,000 pounds and the 1,000 pound 

minimum quantity exception did not 

accommodate this size shipment. No 

other alternatives were discussed. 

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 proposed rule would relax the 

minimum quantity exception under the 

order from 1,000 to 2,000 pounds. 

Accordingly, this action would 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. 

AMS is committed to complying with 

the E-Government Act, to promote the 

use of the internet and other 

information technologies to provide 

increased opportunities for citizen 

access to Government information and 

services, and for other purposes. 

USDA has not identified any relevant 

Federal rules that duplicate, overlap or 

conflict with this proposed rule. 

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. 

Finally, interested persons are invited to 

submit comments on this proposed rule, 

including the regulatory and 

informational impacts of this action on 

small businesses. 

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 proposed rule. 

A 60-day comment period is provided 

to allow interested persons to respond 

to this proposal. All written comments 

timely received will be considered 

before a final determination is made on 

this matter. 

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 proposed to be 

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. Revise § 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. 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: September 29, 2014. 

Rex A. Barnes, 

Associate Administrator, Agricultural 

Marketing Service. 

[FR Doc. 2014–23524 Filed 10–3–14; 8:45 am] 

BILLING CODE 3410–02–P 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

14 CFR Part 1245 

[Docket No: 2700–0010] 

RIN 2700–AE02 

Patents and Other Intellectual Property 

Rights 

AGENCY: National Aeronautics and 

Space Administration. 

ACTION: Proposed rule. 

SUMMARY: NASA is proposing to amend 

its patent waivers regulations to update 

citations and the patent waiver policy, 

and to clarify and update the patent 

waiver procedures, so they are more in 

line with the National Aeronautics and 


tkelley on DSK3SPTVN1PROD with PROPOSALS