39240 Federal Register / Vol. 74, No. 150 / Thursday, August 6, 2009 / Proposed Rules 

§ 983.50 Aflatoxin regulations. 

The committee shall establish, with 

the approval of the Secretary, such 

aflatoxin sampling, analysis, and 

inspection requirements applicable to 

pistachios to be shipped for domestic 

human consumption as will contribute 

to orderly marketing or be in the public 

interest. No handler shall ship, for 

human consumption, pistachios that 

exceed an aflatoxin level established by 

the committee with approval of the 

Secretary. All domestic shipments must 

be covered by an aflatoxin inspection 

certificate. 

47. Move the undesignated center 

heading ‘‘REGULATIONS’’ to precede 

§ 983.50. 

§ 983.39 [Redesignated as § 983.51] 

48. Lift suspension of § 983.39 

published on December 7, 2007 (72 FR 

69141) and effective on December 10, 

2007, redesignate § 983.39 as § 983.51, 

and revise the section to read as follows: 

§ 983.51 Quality regulations. 

For any production year, the 

committee may establish, with the 

approval of the Secretary, such quality 

and inspection requirements applicable 

to pistachios to be shipped for domestic 

human consumption as will contribute 

to orderly marketing or be in the public 

interest. In such production year, no 

handler shall ship pistachios for 

domestic human consumption unless 

they meet the applicable requirements 

as evidenced by certification acceptable 

to the committee. 

§ 983.40 [Redesignated as § 983.52] 

49. Lift suspension of § 983.40 

published on December 7, 2007 (72 FR 

69141) and effective on December 10, 

2007, redesignate § 983.40 as § 983.52, 

and revise the section to read as follows: 

§ 983.52 Failed lots/rework procedure. 

(a) Substandard pistachios. Each lot 

of substandard pistachios may be 

reworked to meet aflatoxin or quality 

requirements. The committee may 

establish, with the Secretary’s approval, 

appropriate rework procedures. 

(b) Failed lot reporting. If a lot fails to 

meet the aflatoxin and/or the quality 

requirements of this part, a failed lot 

notification report shall be completed 

and sent to the committee within 10 

working days of the test failure. This 

form must be completed and submitted 

to the committee each time a lot fails 

either aflatoxin or quality testing. The 

accredited laboratories shall send the 

failed lot notification reports for 

aflatoxin tests to the committee, and the 

handler, under the supervision of an 

inspector, shall send the failed lot 

notification reports for the lots that do 

not meet the quality requirements to the 

committee. 

50. Add a new § 983.46, preceded by 

an undesignated center heading, to read 

as follows: 

Research 

§ 983.46 Research. 

The committee, with the approval of 

the Secretary, may establish or provide 

for the establishment of projects 

involving research designed to assist or 

improve the efficient production and 

postharvest handling of quality 

pistachios. The committee, with the 

approval of the Secretary, may also 

establish or provide for the 

establishment of projects designed to 

determine the effects of pistachio 

consumption on human health and 

nutrition. Pursuant to § 983.43(a), such 

research projects may only be 

established with 12 concurring votes of 

the voting members of the committee. 

The expenses of such projects shall be 

paid from funds collected pursuant to 

§§ 983.71 and 983.72. 

[FR Doc. E9–18538 Filed 8–5–09; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Commodity Credit Corporation 

7 CFR Part 1493 

RIN 0551–AA73 

Facility Guarantee Program 

AGENCY: Foreign Agricultural Service 

and Commodity Credit Corporation, 

USDA. 

ACTION: Advanced notice of proposed 

rulemaking. 

SUMMARY: This advanced notice of 

proposed rulemaking (ANPR) solicits 

comments on options to reform the 

USDA, Commodity Credit Corporation 

(CCC), Facility Guarantee Program 

(FGP). The purpose of the ANPR is to 

invite suggestions on improvements and 

changes to be made in the 

implementation and operation of the 

FGP, with the intent of improving the 

FGP’s effectiveness and efficiency and 

lowering costs. 

DATES: Comments on this notice must be 

received by October 5, 2009 to be 

assured consideration. 

ADDRESSES: You may submit comments 

by any of the following methods: 

• E–Mail: FGP.ANPR@fas.usda.gov. 

• Fax: (202) 720–2495, Attention: 

‘‘FGP/ANPR Comments.’’ 

• Mail to: P. Mark Rowse, Director, 

Office of Trade Programs, Credit 

Programs Division, Foreign Agricultural 

Service, U.S. Department of Agriculture, 

Stop 1025, Washington, DC 20250– 

1025. 

• Hand Delivery or Courier: 1250 

Maryland Avenue, SW., Washington, 

DC 20024. 

All comments received will be 

available for public inspection at the 

above address during regular business 

hours. 

FOR FURTHER INFORMATION CONTACT: P. 

Mark Rowse, Director, Credit Programs 

Division, at the address stated above or 

by telephone: (202) 720–6211. 

SUPPLEMENTARY INFORMATION:

Background 

The FGP is currently authorized by 

the Food, Agriculture, Conservation, 

and Trade Act of 1990 (the 1990 Act), 

as amended. Under the FGP, CCC 

provides payment guarantees to 

facilitate the financing of manufactured 

goods and services exported from the 

United States to improve or establish 

agriculture-related facilities in emerging 

markets. By supporting such facilities, 

the FGP is designed to enhance sales of 

U.S. agricultural commodities and 

products to emerging markets where the 

demand for such commodities and 

products may be limited due to 

inadequate storage, processing, handling 

or distribution capabilities for such 

products. 

Under the FGP, CCC guarantees a loan 

established by a U.S. bank (or, less 

typically, by a U.S. exporter) to an 

importer’s bank. The eligible importer’s 

bank issues a dollar-denominated letter 

of credit in favor of the exporter. The 

eligible U.S. bank, working with the 

exporter, extends credit to finance the 

sale of equipment, goods or services for 

an FGP approved project. 

As a Participant to the Organization 

for Economic Cooperation and 

Development’s (OECD) Arrangement on 

Officially Supported Export Credits, the 

United States has agreed to adopt the 

terms and conditions of that 

Arrangement for the FGP. The 

Arrangement can be found on the 

OECD’s Web site at: http:// 

www.oecd.org/topic/0,3373,en_

2649_34169_1_1_1_1_37431,00.html. 

Project Eligibility 

USDA does not designate specific 

projects but instead solicits proposals 

from exporters. Private sector importers, 

exporters and the banking sector should 

determine which projects are 

commercially viable. The FGP will 

support the financing of projects that 


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Federal Register / Vol. 74, No. 150 / Thursday, August 6, 2009 / Proposed Rules 39241 

focus on improvements to the storage, 

processing, handling or distribution of 

agricultural commodities. The exporter, 

with information from the importer, 

must make a reasonable economic 

argument that the project will primarily 

benefit U.S. agricultural commodity 

exports. 

Payment and Coverage 

CCC requires a minimum 15 percent 

initial payment by the importer to the 

exporter prior to the export of the goods 

or services. After the initial payment is 

deducted from the net contract value, 

the FGP guarantee covers a portion of 

the facility base value (historically 95 

percent) and a portion of the interest for 

a repayment term of up to 10 years, 

depending on the country. By financing 

less than 100 percent of the net contract 

value, CCC encourages risk-sharing by 

the exporter or the exporter’s assignee. 

Participation Criteria 

The CCC must qualify FGP 

participants before accepting guarantee 

applications. An exporter must have a 

business office in the United States and 

must not be debarred or suspended, or 

otherwise excluded, from any U.S. 

government program. Financial 

institutions must be approved by the 

CCC. 

The CCC evaluates the ability of each 

country and each approved foreign bank 

to service CCC-guaranteed debt. For 

programming purposes, a credit limit is 

established for each obligor country. 

Banks within the approved obligor 

country are reviewed and individual 

bank credit lines are established. New 

banks may be added or existing 

approved bank levels may be increased 

or decreased as appropriate, based on 

available information. 

Defaults/Claims 

If the foreign bank fails to make any 

payment as agreed under the FGP 

guaranteed transaction, the exporter or 

assignee must submit a notice of default 

to the CCC. A claim for loss also may 

be filed, and the CCC will promptly pay 

claims found to be in good order. For 

CCC audit purposes, the U.S. exporter 

must obtain documentation to show that 

the commodity arrived in the eligible 

country, and must maintain all 

transaction documents for 5 years from 

the date of completion of all payments. 

Fees 

The issuance of the guarantee is 

subject to a fee paid by the applicant. 

Fees are based on the risk grade of the 

obligor country, tenor of the guarantee 

(length of credit period), and terms for 

principal payment installments, 

whether 6 months or annually. 

Statutory Authority and Revisions 

The FGP is authorized by section 

1542 of the Food, Agriculture, 

Conservation, and Trade Act of 1990, as 

amended (1990 Act). Section 1542(a) of 

the 1990 Act, as amended, provides that 

CCC make available, for fiscal years 

1996 through 2012, not less than $1 

billion in direct credits or export credit 

guarantees for exports to emerging 

markets. A portion of such credit 

guarantees must, in accordance with 

section 1542(b) of the 1990 Act, be made 

available for the export of goods and 

services for agricultural facilities. 

Guarantees are to be made available if 

the Secretary of Agriculture determines 

that such guarantees will primarily 

promote the export of U.S. agricultural 

commodities and products thereof. 

Specifically, eligible projects must 

provide for (1) the establishment or 

improvement of agricultural facilities in 

emerging markets, or (2) the provision of 

services or U.S. products goods in 

emerging markets, by U.S. persons, to 

improve handling, marketing, 

processing, storage, or distribution of 

imported agricultural commodities or 

products in such markets. The phrase 

‘‘establishment or improvement of 

facilities’’ allows for varied types of 

projects ranging from the sale of 

equipment (e.g., refrigeration, 

processing, transportation) and other 

goods needed to alleviate impediments 

to increasing export sales of U.S. 

agricultural commodities, to providing 

services, such as equipment installation, 

testing, and training to facilitate 

achievement of the same purposes. 

Section 1542(b) further requires CCC 

to give priority to projects that (1) 

encourage the privatization of the 

agricultural sector in emerging markets, 

(2) benefit private farms or cooperatives 

in emerging markets, and (3) are 

supported by nongovernmental persons 

who agree to assume a relatively larger 

share of the costs. 

Section 1542(f) of the 1990 Act 

defines ‘‘emerging market’’ as any 

country that the Secretary of Agriculture 

determines (1) is taking steps towards a 

market-oriented economy through food, 

agriculture, or rural business sectors of 

the economy of the country and (2) has 

the potential to provide a viable and 

significant market for U.S. agricultural 

commodities or their products. 

The Food, Conservation, and Energy 

Act of 2008 extended the authority for 

the FGP through fiscal year 2012, and 

amended section 1542(b) by providing 

for a ‘‘Construction Waiver’’ that would 

allow the Secretary of Agriculture to 

waive the requirement for U.S. goods 

used in the construction of the facility 

if the Secretary determines that U.S. 

goods are not available or the use of U.S. 

goods is not practicable. 

Regulatory History 

CCC published an FGP interim rule 

on March 1, 1993 (58 FR 11786), in 

response to the 1990 Act. However, the 

interim rule was deleted effective 

November 18, 1994, when CCC revised 

7 CFR 1493 and issued a final rule on 

the GSM–102 and GSM–103 programs, 

and the program was not made 

operational before its authority expired 

on September 30, 1995. Congress 

changed the targeting of the FGP in the 

Federal Agriculture Improvement and 

Reform Act of 1996 to countries 

determined by the Secretary of 

Agriculture to be emerging markets. On 

August 8, 1997, a new interim rule with 

request for comment was issued that 

provided for facility payment guarantees 

to be issued by the CCC. To date, no 

final rule has been issued for the FGP 

and the comments received related to 

the 1997 interim rule were never 

addressed by CCC. 

Comments 

CCC is soliciting the responses of 

interested parties to the following 

specific questions concerning options 

under consideration for the FGP. 

Interested parties may choose to address 

any or all of the questions listed or 

provide other comments. CCC’s aim is 

to streamline the FGP’s application 

process and to improve upon the 

program’s effectiveness and efficiency. 

Additional program information is 

available on our Web site at: http:// 

www.fas.usda.gov/excredits/ecgp.asp. 

1. Application and Review Process 

—Should CCC simplify or eliminate the 

preliminary review stage of the 

application process? 

—Should CCC simplify/reduce the 

information required by 7 CFR 

1493.240(a)(20) that is intended to 

ensure that the facility being financed 

will primarily promote the exports of 

U.S. agricultural commodities? 

—What information should CCC require 

to ensure that the facility being 

financed will primarily promote the 

exports of U.S. agricultural 

commodities? 

—Should CCC continue to require an 

analysis of project outputs as required 

by 7 CFR 1493.240(a)(21)? 

—In what way could 7 CFR 

1493.240(a)(21) be simplified? 

—Should CCC continue to require per 7 

CFR 1493.240(a)(5) that letters of 

interest from U.S. and foreign banks 


jlentini on DSKJ8SOYB1PROD with PROPOSALS
39242 Federal Register / Vol. 74, No. 150 / Thursday, August 6, 2009 / Proposed Rules 

be submitted at the time of initial 

application? 

—What documentation should an 

applicant submit to CCC to establish 

evidence that the initial 15 percent 

down payment requirement has been 

met? 

2. Coverage 

—What coverage should CCC offer 

under the FGP (principal and 

interest)? 

—Should CCC continue to require a risk 

share partner? If not, please explain 

why a risk share partner is 

unnecessary. 

3. Construction Waiver 

With the enactment of the Food, 

Conservation, and Energy Act of 2008, 

the Secretary of Agriculture may waive 

the requirement for U.S. goods used in 

the construction of the facility if the 

Secretary determines that U.S. goods are 

not available or the use of U.S. goods is 

not practicable. 

—What documentation should CCC 

require the applicant provide to 

support a request for a determination 

that U.S. goods are unavailable? 

—What documentation should CCC 

require the applicant provide to 

support a request for a determination 

that the use of goods from the United 

States is not practicable? 

—How does CCC incorporate delivery 

lead time of the goods in a 

determination of non-availability? 

—Should pricing of goods be a 

determinant of practicability? 

—Should practicability take into 

consideration the compatibility of 

U.S. goods with local inputs? 

Consideration of Comments: 

Additional comments on other 

program modifications to the FGP that 

are responsive to the principles outlined 

herein are encouraged. CCC will 

carefully consider all comments 

submitted by interested parties. After 

consideration of the comments received, 

CCC will consider what changes should 

be made to the FGP. Some of the 

changes described above would require 

solicitation and consideration of 

comments received from interested 

parties via the rulemaking process. 

Other changes might be adopted by 

changing internal policies and 

procedures. Comments received will 

help CCC to determine the extent and 

scope of any future rulemaking. 

Signed at Washington, DC, on July 24, 

2009. 

Suzanne Hale, 

Acting Administrator, Foreign Agricultural 

Service, and Executive Vice President, 

Commodity Credit Corporation. 

[FR Doc. E9–18801 Filed 8–5–09; 8:45 am] 

BILLING CODE 3410–10–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 21 

Proposed New Restricted Category 

Special Purpose Operations 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Proposed policy statement. 

SUMMARY: This notice announces the 

availability of and request comments on 

the proposed inclusion of three new 

restricted category special purpose 

operations under Title 14 of the Code of 

Federal Regulations (14 CFR) 

21.25(b)(7). 

DATES: Comments must be received on 

or before September 8, 2009. 

ADDRESSES: Send all comments on the 

proposed new restricted categories to: 

Federal Aviation Administration, 

Aircraft Certification Service, Aircraft 

Engineering Division, Certification 

Procedures Branch, AIR–110, 950 

L’Enfant Plaza, SW., Fifth Floor, 

Washington, DC 20024. ATTN.: Mr. 

Graham Long, Section Manager. You 

may hand deliver comments to: Federal 

Aviation Administration, 950 L’Enfant 

Plaza, SW., Fifth Floor, Washington, DC 

20024. 

FOR FURTHER INFORMATION CONTACT: 

Federal Aviation Administration, 

Aircraft Engineering Division, Aircraft 

Certification Service, Certification 

Procedures Branch (AIR 110), 950 

L’Enfant Plaza, SW., Fifth Floor, 

Washington, DC 20024. ATTN.: Mr. 

Graham Long, Section Manager. 

Telephone: (202) 385–6319; fax: (202) 

385–6475; or by e-mail: 9-AWA-AVSAIR-110-GNL2@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Comments Invited 

Interested persons are invited to 

comment on the proposed new 

restricted categories for special purpose 

operations by submitting such written 

data, views, or arguments, as they desire 

to the above address. Comments 

received on the proposed new restricted 

categories may be examined, before and 

after the comment closing date, at 950 

L’Enfant Plaza, SW., Fifth Floor, 

Washington, DC 20024, weekdays 

except Federal holidays, between 8:30 

a.m. and 4:30 p.m. The Director of the 

Aircraft Certification Service will 

consider all communications received 

on or before the closing date before 

issuing the final decision. 

Background 

We are considering three new 

restricted category special purpose 

operations under 14 CFR 21.25(b)(7). 

Approval of these new special purpose 

operations would improve the usability 

of restricted category aircraft in support 

of the public welfare and aviation 

safety. The three proposed special 

purpose operations are (a) Alaskan Fuel 

Hauling, (b) Upset Recovery Training, 

and (c) Flying Qualities Demonstrator. 

(a) Alaskan Fuel Hauling would 

provide a means to transport fuel to 

isolated individuals or locations, such 

as villages, towns and mining 

operations, within the State of Alaska. 

Currently, in rural Alaska there are 

numerous remote villages, mining 

camps, and individuals that have no 

practical access except by air. During 

the winter months, transportation of 

fuel to remote locations is limited to 

small quantities hauled by ground on 

trail access vehicles or by aircraft 

owners carrying fuel for their own use. 

During the summer, where stream 

access is available, there is the option of 

hauling limited quantities of fuel by 

small boats. The allowance for 

transportation of flammable liquids, by 

aircraft, when other means of 

transportation are impractical is 

specified in Title 49 of the Code of 

Federal Regulations (49 CFR) 175.310. 

(b) Upset Recovery Training would 

provide an avenue for the use of aircraft 

with modified flight controls to be used 

to train air carrier pilots in upset 

recoveries. Airborne simulation can 

provide aircraft dynamic responses that 

simulate larger, heavier transport 

aircraft, and result in improved safety 

through more-realistic upset recovery 

training for air carrier pilots. The use of 

large transport aircraft for Upset 

Recovery Training is costly, and would 

increase the risk level of training. It is 

also impractical to certificate these 

modified aircraft in compliance with the 

requirements of their standard category 

type certificate. 

(c) Flight control system design and 

development can be more-effectively 

carried out using airborne simulation. 

The optimizations of flight control and 

feel characteristics can be conducted in 

a real-world environment at an early 

stage in the design and development of 

the aircraft. Flying qualities of unique 


jlentini on DSKJ8SOYB1PROD with PROPOSALS