27852 Federal Register / Vol. 76, No. 93 / Friday, May 13, 2011 / Rules and Regulations 

Number 0581–0178 and continues in 

effect until March 31, 2014. 

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. 

The Committee’s meeting was widely 

publicized throughout the Washington 

potato industry and all interested 

persons were invited to participate in 

Committee deliberations. Like all 

committee meetings, the January 26, 

2011, meeting was a public meeting, 

and all entities, both large and small, 

were able to express views on this issue. 

Further, interested persons are invited 

to submit comments on this interim 

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 Antoinette 

Carter at the previously mentioned 

address in the FOR FURTHER INFORMATION

CONTACT section. 

This rule invites comments on 

modifications to the handling regulation 

and reporting requirement for russet 

potatoes under the Washington potato 

marketing order. The modifications 

revise the introductory text of both 

regulations by removing a sentence in 

§ 946.143 and by removing and 

replacing text in § 946.336. Any 

comments received will be considered 

prior to finalization of this rule. 

After consideration of all relevant 

material presented, including the 

Committee’s recommendation, and 

other information, it is found that this 

interim rule, as hereinafter set forth, 

will tend to effectuate the declared 

policy of the Act. 

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

found and determined upon good cause 

that it is impracticable, unnecessary, 

and contrary to the public interest to 

give preliminary notice prior to putting 

this rule into effect and that good cause 

exists for not postponing the effective 

date of this rule until 30 days after 

publication in the Federal Register 

because: (1) Any changes resulting from 

this rule should be effective July 1, 

2011, because the one-year suspension 

of the russet potato-handling regulation 

ends June 30, 2011; (2) the Committee 

discussed and unanimously 

recommended these changes at a public 

meeting and all interested parties had 

an opportunity to provide input; and (3) 

this rule provides a 60-day comment 

period and any comments received will 

be considered prior to finalization of 

this rule. 

List of Subjects in 7 CFR Part 946 

Marketing agreements, Potatoes, 

Reporting and recordkeeping 

requirements. 

For the reasons set forth in the 

preamble, 7 CFR part 946 is amended as 

follows: 

PART 946—IRISH POTATOES GROWN 

IN WASHINGTON 

■ 1. The authority citation for 7 CFR 

part 946 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

§ 946.143 [Amended] 

■ 2. Amend the introductory text of 

§ 946.143 by removing the words 

‘‘Provided, That the first report shall 

include all required information from 

July 24, 2010 through the end of the 

month in which the assessment report 

and its collection of information is 

approved by the Office of Management 

and Budget.′′ 

§ 946.336 [Amended] 

■ 3. Amend the introductory text of 

§ 946.336 by removing the words ‘‘from 

July 24, 2010, through June 30, 2011′′ 

and adding in their place the words 

‘‘beginning July 1, 2011′′. 

Dated: May 9, 2011. 

Ellen King, 

Acting Administrator, Agricultural Marketing 

Service. 

[FR Doc. 2011–11713 Filed 5–12–11; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 985 

[Doc. No. AMS–FV–10–0094; FV11–985–1 

FR] 

Marketing Order Regulating the 

Handling of Spearmint Oil Produced in 

the Far West; Salable Quantities and 

Allotment Percentages for the 2011– 

2012 Marketing Year 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This rule establishes the 

quantity of spearmint oil produced in 

the Far West, by class, that handlers 

may purchase from, or handle on behalf 

of, producers during the 2011–2012 

marketing year, which begins on June 1, 

2011. This rule establishes salable 

quantities and allotment percentages for 

Class 1 (Scotch) spearmint oil of 

694,774 pounds and 34 percent, 

respectively, and for Class 3 (Native) 

spearmint oil of 1,012,983 pounds and 

44 percent, respectively. The Spearmint 

Oil Administrative Committee 

(Committee), the agency responsible for 

local administration of the marketing 

order for spearmint oil produced in the 

Far West, recommended these 

limitations for the purpose of avoiding 

extreme fluctuations in supplies and 

prices to help maintain stability in the 

spearmint oil market. 

DATES: Effective Date: This final rule 

becomes effective June 1, 2011, through 

May 31, 2012. 

FOR FURTHER INFORMATION CONTACT: 

Barry Broadbent, Marketing Specialist 

or Gary Olson, Regional Manager, 

Northwest Marketing Field Office, 

Marketing Order Administration 

Branch, Fruit and Vegetable Programs, 

AMS, USDA; Telephone: (503) 326– 

2724, Fax: (503) 326–7440, or E-mail: 

Barry.Broadbent@ams.usda.gov or 

GaryD.Olson@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 final 

rule is issued under Marketing Order 

No. 985 (7 CFR part 985), as amended, 

regulating the handling of spearmint oil 

produced in the Far West (Washington, 

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Federal Register / Vol. 76, No. 93 / Friday, May 13, 2011 / Rules and Regulations 27853 

Idaho, Oregon, and designated parts of 

Nevada and Utah), 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, salable quantities and 

allotment percentages may be 

established for classes of spearmint oil 

produced in the Far West. This final 

rule establishes the quantity of 

spearmint oil produced in the Far West, 

by class, which handlers may purchase 

from, or handle on behalf of, producers 

during the 2011–2012 marketing year, 

which begins on June 1, 2011. 

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. 

The Committee meets annually in the 

fall to adopt a marketing policy for the 

ensuing marketing year or years. In 

determining such marketing policy, the 

Committee considers a number of 

factors, including, but not limited to, the 

current and projected supply, estimated 

future demand, production costs, and 

producer prices for all classes of 

spearmint oil, as well as input from 

spearmint oil handlers and producers 

regarding prospective marketing 

conditions. During the meeting, the 

Committee recommends to USDA any 

volume regulations deemed necessary to 

meet market requirements and to 

establish orderly marketing conditions 

for Far West spearmint oil. If the 

Committee’s marketing policy 

considerations indicate a need for 

limiting the quantity of any or all 

classes of spearmint oil marketed, the 

Committee subsequently recommends 

the establishment of a salable quantity 

and allotment percentage for such class 

or classes of oil for the forthcoming 

marketing year. 

The salable quantity represents the 

total amount of each class of spearmint 

oil that handlers may purchase from, or 

handle on behalf of, producers during 

the marketing year. Each producer is 

allotted a prorated share of the salable 

quantity by applying the allotment 

percentage to that producer’s allotment 

base for each applicable class of 

spearmint oil. The producer allotment 

base is each producer’s quantified share 

of the spearmint oil market based on a 

statistical representation of past 

spearmint oil production and the 

accommodation for reasonable and 

normal adjustments to such base as 

prescribed by the Committee and 

approved by USDA. Salable quantities 

are established at levels intended to 

meet market requirements and to 

establish orderly marketing conditions. 

Committee recommendations for 

volume controls are made well in 

advance of the period in which the 

regulations are to be effective, thereby 

allowing producers the chance to adjust 

their production decisions accordingly. 

Pursuant to authority in §§ 985.50, 

985.51, and 985.52 of the order, the full 

eight-member Committee met on 

October 13, 2010, and recommended 

salable quantities and allotment 

percentages for both classes of oil for the 

2011–2012 marketing year. The 

Committee, in a vote of six members in 

favor and two members opposed, 

recommended the establishment of a 

salable quantity and allotment 

percentage for Scotch spearmint oil of 

694,774 pounds and 34 percent, 

respectively. The two members 

opposing the action favored an 

undetermined greater salable quantity 

and allotment percentage for Scotch 

spearmint oil. For Native spearmint oil, 

the Committee unanimously 

recommended the establishment of a 

salable quantity and allotment 

percentage of 1,012,983 pounds and 

44 percent, respectively. 

This final rule limits the amount of 

spearmint oil that handlers may 

purchase from, or handle on behalf of, 

producers during the 2011–2012 

marketing year, which begins on June 1, 

2011. Salable quantities and allotment 

percentages have been placed into effect 

each season since the order’s inception 

in 1980. 

Class 1 (Scotch) Spearmint Oil 

The U.S. production of Scotch 

spearmint oil is concentrated in the Far 

West, which includes Washington, 

Idaho, Oregon, and a portion of Nevada 

and Utah. Scotch type oil is also 

produced in seven other States: Indiana, 

Michigan, Minnesota, Montana, North 

Dakota, South Dakota, and Wisconsin. 

Additionally, Scotch spearmint oil is 

produced outside of the U.S., with 

China and India being the largest global 

competitors of domestic Scotch 

spearmint oil production. 

The Far West’s share of total global 

Scotch spearmint oil sales has varied 

considerably over the past several 

decades, from 72 percent in 1980 to 27 

percent in 2002. Recently, sales of Far 

West Scotch spearmint oil have risen to 

over 48 percent of world sales, and are 

expected to hold steady, or go even 

higher, in the coming years. 

In spite of the Far West’s growing 

share of the world market for Scotch 

spearmint oil, the industry has faced 

some stressful marketing conditions 

during the most recent marketing years. 

Spearmint oil producers experienced 

relatively good economic conditions in 

the years from 2004 through 2007, 

which led to overproduction and an 

environment of excess supply in the 

market beginning in 2008 and 

continuing through 2010. The Far West 

region, which produced 635,508 pounds 

of Scotch spearmint oil in 2004, 

produced 1,050,700 pounds just five 

years later in 2009, a 65 percent 

increase. 

In addition to the recent oversupply 

concerns, the demand for Far West 

Scotch spearmint oil, which peaked in 

2005 at 1,002,779 pounds, has 

experienced a steady decline to just 

627,868 pounds in 2009. With 

production rising and sales dropping, 

excess inventory of uncommitted Scotch 

spearmint oil began to accumulate. 

Scotch spearmint oil carry-in (unsold 

salable quantity from prior years that is 

available for sale at the beginning of a 

new marketing year), which serves as a 

measure of oversupply in the market, 

grew from 23,141 pounds in 2007 to 

431,028 pounds in 2010. 

The Committee’s response to the 

deteriorating marketing environment 

since 2008 has been to recommend the 

tightening of volume control 

regulations. The Committee, which 

recommended a 2008–2009 marketing 

year Scotch spearmint oil salable 

quantity of 993,067 pounds, dropped 

the recommendation to 802,067 pounds 

for the 2009–2010 marketing year, and 

to only 566,962 pounds for the 2010– 

2011 marketing year. Similarly, the 

recommended allotment percentage was 

reduced from 50 percent for the 2008– 

2009 period to 40 percent for 2009– 

2010, and down to just 28 percent for 

2010–2011. 

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When the Committee met in October 

2010 to consider volume regulation for 

the 2011–2012 marketing year, many of 

the previously mentioned negative 

marketing conditions still persisted. 

Even while showing some signs of 

incremental improvement, the current 

inventories, expected production, and 

projected demand of Scotch spearmint 

oil were all at levels considered 

unhealthy for the industry. 

The Committee estimates that the 

carry-in of Scotch spearmint oil on June 

1, 2011, the primary measure of excess 

supply, will be approximately 197,551 

pounds. That quantity, while down 

from the previous year’s high of 431,028 

pounds, will still be above what the 

Committee considers to be optimum. 

The overproduction of Scotch 

spearmint oil also continues to be an 

area of concern for the Committee. 

Production of Far West Scotch 

spearmint oil has declined from a high 

of 1,050,700 pounds in 2009 to 868,487 

pounds in 2010, but still remains high 

relative to inventory levels and 

anticipated demand. The recent 

declining trend in Scotch spearmint oil 

production is viewed by the Committee 

as a positive development for the 

industry. However, production will 

need to drop further to find balance 

with the current levels of demand. 

In addition, spearmint oil handlers 

indicated that demand for Scotch 

spearmint oil might be gaining strength. 

Handlers that had projected that the 

trade demand for Far West Scotch oil 

would range from a low of 750,000 

pounds to a high of 850,000 pounds for 

the 2010–2011 marketing year, expect 

the trade demand to be within a range 

of 800,000 pounds to 900,000 pounds 

for the 2011–2012 period. 

However, this increase in projected 

Scotch demand, generally thought of as 

a positive indicator for the industry, is 

viewed cautiously by some industry 

participants. Consumer demand for 

mint flavored products is reportedly 

steady, providing optimism for long 

term increases in the demand for Far 

West spearmint oil. Some handlers, 

though, believe that the manufacturers 

of such products are currently 

increasing spearmint oil purchases just 

to rebuild inventories that were 

depleted during the worst of the recent 

U.S. economic recession. As such, those 

handlers feel that at least some of the 

recent increase in Scotch spearmint oil 

sales may not represent an actual 

increase in sustained demand, but a 

temporary response to fluctuations in 

the strategic inventories of the 

manufacturers. 

Still, given the moderately improving 

economic indicators for the Far West 

Scotch spearmint oil industry outlined 

above, the Committee took a cautiously 

optimistic perspective into the 

discussion of establishing appropriate 

salable quantities and allotment 

percentages for the upcoming season. 

Therefore, at the October 13, 2010, 

meeting, the Committee recommended 

the 2011–2012 Scotch spearmint oil 

salable quantity of 694,774 pounds and 

allotment percentage of 34 percent. The 

Committee utilized sales estimates for 

2011–2012 Scotch spearmint oil, as 

provided by several of the industry’s 

handlers, as well as historical and 

current Scotch spearmint oil production 

and inventory statistics, to arrive at 

those recommendations. The volume 

control levels recommended by the 

Committee represent a 127,812 pound 

and 6 percentage point increase over the 

previous year’s salable quantity and 

allotment percentage, reflecting a more 

positive assessment of the industry’s 

economic conditions. 

The Committee estimates that about 

800,000 pounds of Scotch spearmint oil 

may be sold during the 2011–2012 

marketing year. When considered in 

conjunction with the estimated carry-in 

of 197,551 pounds of Scotch spearmint 

oil on June 1, 2011, the recommended 

salable quantity of 694,774 pounds 

results in a total available supply of 

approximately 892,325 pounds of 

Scotch spearmint oil during the 2011– 

2012 marketing year. The Committee 

estimates that carry-in of Scotch 

spearmint oil into the 2012–2013 

marketing year, which begins June 1, 

2012, will be 92,325 pounds, a decrease 

of 105,226 pounds from the beginning of 

the 2011–2012 marketing year. 

The Committee’s stated intent in the 

use of marketing order volume control 

regulations for Scotch spearmint oil is to 

keep adequate supplies available to 

meet market needs and establish orderly 

marketing conditions. With that in 

mind, the Committee developed its 

recommendation for the proposed 

Scotch spearmint oil salable quantity 

and allotment percentage for the 2011– 

2012 marketing year based on the 

information discussed above, as well as 

the data outlined below. 

(A) Estimated carry-in on June 1, 

2011—197,551 pounds. This figure is 

the difference between the revised 

2010–2011 marketing year total 

available supply of 997,551 pounds and 

the estimated 2010–2011 marketing year 

trade demand of 800,000 pounds. 

(B) Estimated trade demand for the 

2011–2012 marketing year—800,000 

pounds. This figure is based on input 

from producers at six Scotch spearmint 

oil production area meetings held in late 

September and early October 2010, as 

well as estimates provided by handlers 

and other meeting participants at the 

October 13, 2010, meeting. The average 

estimated trade demand provided at the 

six production area meetings is 800,000 

pounds, which is 33,333 pounds less 

than the average of the trade demand 

estimates submitted by handlers. The 

average of Far West Scotch spearmint 

oil sales over the last five years is 

789,243 pounds. 

(C) Salable quantity required from the 

2011–2012 marketing year production— 

602,449 pounds. This figure is the 

difference between the estimated 2011– 

2012 marketing year trade demand 

(800,000 pounds) and the estimated 

carry-in on June 1, 2011 (197,551 

pounds). This figure represents the 

minimum salable quantity that may be 

needed to satisfy estimated demand for 

the coming year with no carryover. 

(D) Total estimated allotment base for 

the 2011–2012 marketing year— 

2,043,453 pounds. This figure 

represents a one percent increase over 

the revised 2010–2011 total allotment 

base. This figure is generally revised 

each year on June 1 due to producer 

base being lost because of the bona fide 

effort production provisions of 

§ 985.53(e). The revision is usually 

minimal. 

(E) Computed allotment percentage— 

29.5 percent. This percentage is 

computed by dividing the minimum 

required salable quantity by the total 

estimated allotment base. 

(F) Recommended allotment 

percentage—34 percent. This is the 

Committee’s recommendation and is 

based on the computed allotment 

percentage (29.5 percent), the average of 

the computed allotment percentage 

figures from the six production area 

meetings (31 percent), and input from 

producers and handlers at the October 

13, 2010, meeting. The actual 

recommendation of 34 percent is based 

on the Committee’s determination that 

the computed percentage (29.5 percent) 

may not adequately supply the potential 

2011–2012 Scotch spearmint oil market. 

(G) The Committee’s recommended 

salable quantity—694,774 pounds. This 

figure is the product of the 

recommended allotment percentage and 

the total estimated allotment base. 

(H) Estimated available supply for the 

2011–2012 marketing year—892,325 

pounds. This figure is the sum of the 

2011–2012 recommended salable 

quantity (694,774 pounds) and the 

estimated carry-in on June 1, 2011 

(197,551 pounds). 

Class 3 (Native) Spearmint Oil 

The Native spearmint oil industry is 

facing market conditions that are very 

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Federal Register / Vol. 76, No. 93 / Friday, May 13, 2011 / Rules and Regulations 27855 

similar to those affecting the Scotch 

spearmint oil market, although not 

nearly as severe. Over 90 percent of U.S. 

production of Native spearmint oil is 

produced within the Far West 

production area, thus domestic 

production outside this area is not a 

major factor in the marketing of Far 

West Native spearmint oil. This has 

been an attribute of U.S. production 

since the order’s inception. A minor 

amount of domestic Native spearmint 

oil is produced outside of the Far West 

region in the States of Indiana, 

Michigan, Minnesota, Montana, North 

Dakota, South Dakota, and Wisconsin. 

According to the Committee, very 

little true Native spearmint oil is 

produced outside of the United States. 

However, India produces an increasing 

quantity of spearmint oil with qualities 

very similar to Native spearmint oil. 

Committee records show that in 1996 

the Far West accounted for nearly 93 

percent of the global sales of Native or 

Native quality spearmint oil. By 2008 

that share had shrunk to a low of 48 

percent. Since that point, however, the 

percentage has rebounded and is now 

estimated to be over 57 percent for 2010. 

In spite of the fact that Far West 

Native spearmint oil has been gaining 

world market share, the industry has 

endured challenging marketing 

conditions over the past several 

marketing years. Overproduction, 

coupled with a decrease in demand, 

created a similar oversupply situation 

for Native spearmint oil as was 

previously discussed for Scotch 

spearmint oil. Production of Native 

spearmint oil in the Far West region was 

701,372 pounds in 2004, but increased 

to 1,453,896 pounds just five years later 

in 2009, a 107 percent increase. In 

addition, over that same timeframe, 

demand for Native oil was moving in 

the opposite direction. Sales of Far West 

Native oil peaked in 2004 at 1,249,507 

pounds. From that cyclical high, sales 

steadily declined over the next five 

years, dropping to just 976,888 pounds 

by 2009. As production rose and sales 

dropped, excess inventory of 

uncommitted Native spearmint oil 

began to accumulate. Carry-in of Native 

oil measured at the beginning of each 

marketing year, which serves as a 

measure of oversupply in the market, 

grew from 83,417 pounds at the 

beginning of the 2007–2008 marketing 

year to 343,517 pounds at the beginning 

of the 2010–2011 marketing year. 

The Committee’s response to the 

difficult marketing environment for 

Native spearmint oil over the 2008 

through 2010 period was similar to the 

response to the situation with Scotch 

spearmint oil over that time, to 

recommend the moderate tightening of 

volume control regulations. The 

Committee, which recommended a 

2008–2009 Native spearmint oil salable 

quantity of 1,178,946 pounds, 

maintained a similar recommendation 

for the 2009–2010 marketing year and 

then dropped its recommendation to 

953,405 pounds for the 2010–2011 

marketing year. Similarly, the 

recommended allotment percentage, 

which was 53 percent for the 2008–2009 

and 2009–2010 periods, was 

recommended to be reduced to just 

43 percent for 2010–2011. 

Although improving, many of the 

negative marketing conditions present 

leading up to the 2010–2011 marketing 

year were still evident when the 

Committee met to consider volume 

regulation for the upcoming 2011–2012 

marketing year. Carry-in of Native 

spearmint oil on June 1, 2011, is 

estimated to be 216,737 pounds, down 

from the previous year’s high of 343,517 

pounds, but still at a level above what 

the Committee believes to be optimum. 

Also, production of Native spearmint 

oil, while showing some signs of 

improvement, still remains an area of 

concern for the Committee. Production 

of Far West Native spearmint oil, which 

declined from a high of 1,453,896 

pounds in 2009 to 1,244,361 pounds in 

2010, is still considered by the 

Committee to be high relative to the 

current level of demand and the excess 

inventory of Native spearmint oil. 

However, the Committee believes that 

the declining trend in Native spearmint 

oil production may continue into the 

2011 season and that much of the 

pressure on the industry’s current 

oversupply situation may be relieved 

moving forward. 

In addition to an improved supply 

situation, demand for Far West Native 

spearmint oil appears to have halted its 

downward movement and is expected to 

improve in the coming year. Spearmint 

oil handlers, who projected that the 

2010–2011 trade demand for Far West 

Native spearmint oil would range from 

a low of 1,050,000 pounds to a high of 

1,200,000 pounds, have increased their 

projections modestly for the 2011–2012 

period to a range of 1,100,000 pounds to 

1,200,000 pounds. 

However, similar to Scotch spearmint 

oil, the small increase in projected 

Native spearmint oil demand, generally 

thought of as a positive indicator for the 

industry, is viewed by some handlers 

with caution. As mentioned previously, 

consumer demand for mint flavored 

products is expected to be steady or 

increase slightly moving forward, which 

provides optimism for long term 

improvement in the demand for Far 

West spearmint oil. Some handlers, 

though, have reported that the 

manufacturers of such products may 

just be temporarily increasing purchases 

of spearmint oil to rebuild inventories 

that were depleted during the worst of 

the current U.S. economic recession. As 

such, the handlers believe that at least 

some of the recent increase in purchases 

do not represent an actual increase in 

sustained demand but, rather, a short 

term response to fluctuations in the 

strategic inventories of the 

manufacturers. 

Given the moderately improving 

economic indicators for the Far West 

Native spearmint oil industry outlined 

above, the Committee took a cautiously 

optimistic perspective into the 

discussion of establishing appropriate 

salable quantities and allotment 

percentages for the upcoming season. 

As such, at the October 13, 2010, 

meeting, the Committee recommended a 

2011–2012 Native spearmint oil salable 

quantity of 1,012,983 pounds and an 

allotment percentage of 44 percent. The 

Committee utilized sales estimates for 

2011–2012 Native spearmint oil, as 

provided by several of the industry’s 

handlers, as well as historical and 

current Native spearmint oil market 

statistics to establish these thresholds. 

The recommended volume control 

levels represent a 32,763 pound and a 

1 percentage point increase over the 

previous year’s salable quantity and 

allotment percentage. Even with these 

increases in the salable quantity and 

allotment percentages, the carry-in at 

the beginning of the 2012–2013 

marketing year is projected to drop by 

117,018 pounds. 

The Committee estimates that 

approximately 1,130,000 pounds of 

Native spearmint oil may be sold during 

the 2011–2012 marketing year. When 

considered in conjunction with the 

estimated carry-in of 216,737 pounds of 

Native spearmint oil on June 1, 2011, 

the recommended salable quantity of 

1,012,983 pounds results in a total 

available supply of about 1,229,719 

pounds of Native spearmint oil during 

the 2011–2012 marketing year. The 

Committee estimates that carry-in of 

Native spearmint oil at the beginning of 

the 2012–2013 marketing year to be 

99,719 pounds, a significant reduction 

from the previous year’s level of 216,737 

pounds. 

The Committee’s stated intent in the 

use of marketing order volume control 

regulations for Native spearmint oil is to 

keep adequate supplies available to 

meet market needs and establish orderly 

marketing conditions. With that in 

mind, the Committee developed its 

recommendation for the proposed 

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27856 Federal Register / Vol. 76, No. 93 / Friday, May 13, 2011 / Rules and Regulations 

Native spearmint oil salable quantity 

and allotment percentage for the 2011– 

2012 marketing year based on the 

information discussed above, as well as 

the data outlined below. 

(A) Estimated carry-in on June 1, 

2011—216,737 pounds. This figure is 

the difference between the revised 

2010–2011 marketing year total 

available supply of 1,323,737 pounds 

and the estimated 2010–2011 marketing 

year trade demand of 1,107,000 pounds. 

(B) Estimated trade demand for the 

2011–2012 marketing year—1,130,000 

pounds. This estimate is established by 

the Committee and is based on input 

from producers at the seven Native 

spearmint oil production area meetings 

held in late September and early 

October 2010, as well as estimates 

provided by handlers and other meeting 

participants at the October 13, 2010, 

meeting. The average estimated trade 

demand provided at the seven 

production area meetings was 1,130,238 

pounds, whereas the handler estimate 

ranged from 1,100,000 pounds to 

1,200,000 pounds. 

(C) Salable quantity required from the 

2011–2012 marketing year production— 

913,263 pounds. This figure is the 

difference between the estimated 2011– 

2012 marketing year trade demand 

(1,130,000 pounds) and the estimated 

carry-in on June 1, 2011 (216,737 

pounds). This is the minimum amount 

that the Committee believes will be 

required to meet the anticipated 2011– 

2012 Native spearmint oil trade 

demand. 

(D) Total estimated allotment base for 

the 2011–2012 marketing year— 

2,302,233 pounds. This figure 

represents a one percent increase over 

the revised 2010–2011 total allotment 

base. This figure is generally revised 

each year on June 1 due to producer 

base being lost due to the bona fide 

effort production provisions of 

§ 985.53(e). The revision is usually 

minimal. 

(E) Computed allotment percentage— 

39.7 percent. This percentage is 

computed by dividing the required 

salable quantity (913,263 pounds) by the 

total estimated allotment base 

(2,302,233 pounds). 

(F) Recommended allotment 

percentage—44 percent. This is the 

Committee’s recommendation based on 

the computed allotment percentage 

(39.7 percent), the average of the 

computed allotment percentage figures 

from the seven production area 

meetings (39.7 percent), and input from 

producers and handlers at the October 

13, 2010, meeting. The actual 

recommendation of 44 percent is based 

on the Committee’s determination that 

the computed percentage (39.7 percent) 

may not adequately supply the potential 

2011–2012 Native spearmint oil market. 

(G) The Committee’s recommended 

salable quantity—1,012,983 pounds. 

This figure is the product of the 

recommended allotment percentage 

(44 percent) and the total estimated 

allotment base (2,302,233 pounds). 

(H) Estimated available supply for the 

2011–2012 marketing year—1,229,720 

pounds. This figure is the sum of the 

2011–2012 recommended salable 

quantity (1,012,983 pounds) and the 

estimated carry-in on June 1, 2011 

(216,737 pounds). 

The salable quantity is the total 

quantity of each class of spearmint oil 

that handlers may purchase from, or 

handle on behalf of, producers during a 

marketing year. Each producer is 

allotted a share of the salable quantity 

by applying the allotment percentage to 

the producer’s allotment base for the 

applicable class of spearmint oil. 

The Committee’s recommended 

Scotch and Native spearmint oil salable 

quantities and allotment percentages of 

694,774 pounds and 34 percent, and 

1,012,983 pounds and 44 percent, 

respectively, are based on the goal of 

establishing and maintaining market 

stability. The Committee anticipates that 

this goal will be achieved by matching 

the available supply of each class of 

Spearmint oil to the estimated demand 

of such, thus avoiding extreme 

fluctuations in inventories and prices. 

The salable quantities established by 

this action are not expected to cause a 

shortage of spearmint oil supplies. 

However, any unanticipated or 

additional market demand for spearmint 

oil which might develop during the 

marketing year could be satisfied by an 

intra-seasonal increase in the salable 

quantity. The order makes this 

provision for intra-seasonal increases to 

allow the Committee the flexibility to 

respond quickly to changing market 

conditions. In addition, producers who 

produce more than their annual 

allotments during the 2011–2012 

marketing year may transfer such excess 

spearmint oil to producers who produce 

less than their annual allotment or, up 

until November 1, 2011, place it into the 

reserve pool to be released in the future 

in accordance with market needs. 

This regulation is similar to 

regulations issued in prior seasons. The 

average allotment percentage for the five 

most recent marketing years for Scotch 

spearmint oil is 42 percent, while the 

average allotment percentage for the 

same five-year period for Native 

spearmint oil is 51 percent. The 

increased costs to producers and 

handlers as a result of this rule are 

expected to be offset by the benefits 

derived from a stable market and 

improved returns. In conjunction with 

the issuance of this final rule, USDA has 

reviewed the Committee’s marketing 

policy statement for the 2011–2012 

marketing year. The Committee’s 

marketing policy statement, a 

requirement whenever the Committee 

recommends volume regulation, fully 

meets the intent of § 985.50 of the order. 

During its discussion of potential 

2011–2012 salable quantities and 

allotment percentages, the Committee 

considered: (1) The estimated quantity 

of salable oil of each class held by 

producers and handlers; (2) the 

estimated demand for each class of oil; 

(3) the prospective production of each 

class of oil; (4) the total of allotment 

bases of each class of oil for the current 

marketing year and the estimated total 

of allotment bases of each class for the 

ensuing marketing year; (5) the quantity 

of reserve oil, by class, in storage; (6) 

producer prices of oil, including prices 

for each class of oil; and (7) general 

market conditions for each class of oil, 

including whether the estimated season 

average price to producers is likely to 

exceed parity. Conformity with the 

USDA’s ‘‘Guidelines for Fruit, Vegetable, 

and Specialty Crop Marketing Orders′′ 

has also been reviewed and confirmed. 

The salable quantities and allotment 

percentages established in this final rule 

allow for the anticipated needs of the 

market. In determining anticipated 

market needs, consideration by the 

Committee was given to historical sales, 

as well as changes and trends in 

production and demand. This rule also 

provides producers with information on 

the amount of spearmint oil that should 

be produced for the 2011–2012 season 

in order to meet anticipated market 

demand. 

Final Regulatory Flexibility Analysis 

Pursuant to requirements set forth in 

the Regulatory Flexibility Act (RFA), the 

Agricultural Marketing Service (AMS) 

has considered the economic impact of 

this action on small entities. 

Accordingly, AMS has prepared this 

final 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 eight spearmint oil handlers 

subject to regulation under the order, 

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Federal Register / Vol. 76, No. 93 / Friday, May 13, 2011 / Rules and Regulations 27857 

and approximately 38 producers of 

Scotch spearmint oil and approximately 

84 producers of Native spearmint oil in 

the regulated production area. Small 

agricultural service firms are defined by 

the Small Business Administration 

(SBA) (13 CFR 121.201) 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. 

Based on the SBA’s definition of 

small entities, the Committee estimates 

that 2 of the 8 handlers regulated by the 

order could be considered small 

entities. Most of the handlers are large 

corporations involved in the 

international trading of essential oils 

and the products of essential oils. In 

addition, the Committee estimates that 

19 of the 38 Scotch spearmint oil 

producers and 29 of the 84 Native 

spearmint oil producers could be 

classified as small entities under the 

SBA definition. Thus, a majority of 

handlers and producers of Far West 

spearmint oil may not be classified as 

small entities. 

The Far West spearmint oil industry 

is characterized by producers whose 

farming operations generally involve 

more than one commodity, and whose 

income from farming operations is not 

exclusively dependent on the 

production of spearmint oil. A typical 

spearmint oil-producing operation has 

enough acreage for rotation such that 

the total acreage required to produce the 

crop is about one-third spearmint and 

two-thirds rotational crops. Thus, the 

typical spearmint oil producer has to 

have considerably more acreage than is 

planted to spearmint during any given 

season. Crop rotation is an essential 

cultural practice in the production of 

spearmint oil for weed, insect, and 

disease control. To remain economically 

viable with the added costs associated 

with spearmint oil production, a 

majority of spearmint oil-producing 

farms fall into the SBA category of large 

businesses. 

Small spearmint oil producers 

generally are not as extensively 

diversified as larger ones and as such 

are more at risk from market 

fluctuations. Such small producers 

generally need to market their entire 

annual allotment and do not have the 

luxury of having other crops to cushion 

seasons with poor spearmint oil returns. 

Conversely, large diversified producers 

have the potential to endure one or 

more seasons of poor spearmint oil 

markets because income from alternate 

crops could support the operation for a 

period of time. Being reasonably assured 

of a stable price and market provides 

small producing entities with the ability 

to maintain proper cash flow and to 

meet annual expenses. Thus, the market 

and price stability provided by the order 

potentially benefit the small producer 

more than such provisions benefit large 

producers. Even though a majority of 

handlers and producers of spearmint oil 

may not be classified as small entities, 

the volume control feature of this order 

has small entity orientation. 

This final rule establishes the quantity 

of spearmint oil produced in the Far 

West, by class, that handlers may 

purchase from, or handle on behalf of, 

producers during the 2011–2012 

marketing year. The Committee 

recommended this rule to help maintain 

stability in the spearmint oil market by 

matching supply to estimated demand 

thereby avoiding extreme fluctuations in 

supplies and prices. Establishing 

quantities to be purchased or handled 

during the marketing year through 

volume regulations allows producers to 

plan their spearmint planting and 

harvesting to meet expected market 

needs. The provisions of §§ 985.50, 

985.51, and 985.52 of the order 

authorize this volume regulation. 

Instability in the spearmint oil subsector of the mint industry is much 

more likely to originate on the supply 

side than the demand side. Fluctuations 

in yield and acreage planted from 

season-to-season tend to be larger than 

fluctuations in the amount purchased by 

handlers. Demand for spearmint oil 

tends to be relatively stable from yearto-year. The demand for spearmint oil is 

expected to grow slowly for the 

foreseeable future because the demand 

for consumer products that use 

spearmint oil will likely expand slowly, 

in line with population growth. 

Demand for spearmint oil at the farm 

level is derived from retail demand for 

spearmint-flavored products such as 

chewing gum, toothpaste, and 

mouthwash. The manufacturers of these 

products are by far the largest users of 

mint oil. However, spearmint flavoring 

is generally a very minor component of 

the products in which it is used, so 

changes in the raw product price have 

virtually no impact on retail prices for 

those goods. 

Spearmint oil production tends to be 

cyclical. Years of relatively high 

production, with demand remaining 

reasonably stable, have led to periods in 

which large producer stocks of unsold 

spearmint oil have depressed producer 

prices for a number of years. Shortages 

and high prices may follow in 

subsequent years, as producers respond 

to price signals by cutting back 

production. 

The significant variability of the 

spearmint oil market is illustrated by 

the fact that the coefficient of variation 

(a standard measure of variability; ‘‘CV′′) 

of Far West spearmint oil production 

from 1980 through 2009 was about 0.23. 

The CV for spearmint oil grower prices 

was about 0.16 for that period, well 

below the CV for production. This 

provides an indication of the price 

stabilizing impact of the marketing 

order. 

Production in the shortest marketing 

year was about 48 percent of the 30-year 

average (1.89 million pounds from 1980 

through 2009) and the largest crop was 

approximately 163 percent of the 30- 

year average. A key consequence is that 

in years of oversupply and low prices 

the season average producer price of 

spearmint oil is below the average cost 

of production (as measured by the 

Washington State University 

Cooperative Extension Service.) 

The wide fluctuations in supply and 

prices that result from this cycle, which 

was even more pronounced before the 

creation of the order, can create 

liquidity problems for some producers. 

The order was designed to reduce the 

price impacts of the cyclical swings in 

production. However, producers have 

been less able to weather these cycles in 

recent years because of the increase in 

production costs. While prices have 

been relatively steady, the cost of 

production has increased to the extent 

that plans to plant spearmint may be 

postponed or changed indefinitely. 

Producers are also enticed by the prices 

of alternative crops and their lower cost 

of production. 

In an effort to stabilize prices, the 

spearmint oil industry uses the volume 

control mechanisms authorized under 

the order. This authority allows the 

Committee to recommend a salable 

quantity and allotment percentage for 

each class of oil for the upcoming 

marketing year. The salable quantity for 

each class of oil is the total volume of 

oil that producers may sell during the 

marketing year. The allotment 

percentage for each class of spearmint 

oil is derived by dividing the salable 

quantity by the total allotment base. 

Each producer is then issued an 

annual allotment certificate, in pounds, 

for the applicable class of oil, which is 

calculated by multiplying the 

producer’s allotment base by the 

applicable allotment percentage. This is 

the amount of oil of each applicable 

class that the producer can sell. 

By November 1 of each year, the 

Committee identifies any oil that 

individual producers have produced 

above the volume specified on their 

annual allotment certificates. This 

excess oil is placed in a reserve pool 

administered by the Committee. 

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27858 Federal Register / Vol. 76, No. 93 / Friday, May 13, 2011 / Rules and Regulations 

There is a reserve pool for each class 

of oil that may not be sold during the 

current marketing year unless USDA 

approves a Committee recommendation 

to increase the salable quantity and 

allotment percentage for a class of oil 

and make a portion of the pool 

available. However, limited quantities of 

reserve oil are typically sold by one 

producer to another producer to fill 

deficiencies. A deficiency occurs when 

on-farm production is less than a 

producer’s allotment. In that case, a 

producer’s own reserve oil can be sold 

to fill that deficiency. Excess production 

(higher than the producer’s allotment) 

can be sold to fill other producers’ 

deficiencies. All of these provisions 

need to be exercised prior to November 

1 of each year. 

In any given year, the total available 

supply of spearmint oil is composed of 

current production plus carry-over 

stocks from the previous crop. The 

Committee seeks to maintain market 

stability by balancing supply and 

demand, and to close the marketing year 

with an appropriate level of carryout. If 

the industry has production in excess of 

the salable quantity, then the reserve 

pool absorbs the surplus quantity of 

spearmint oil, which goes unsold during 

that year, unless the oil is needed for 

unanticipated sales. 

Under its provisions, the order may 

attempt to stabilize prices by (1) limiting 

supply and establishing reserves in high 

production years, thus minimizing the 

price-depressing effect that excess 

producer stocks have on unsold 

spearmint oil, and (2) ensuring that 

stocks are available in short supply 

years when prices would otherwise 

increase dramatically. The reserve pool 

stocks, which are increased in large 

production years, are drawn down in 

years where the crop is short. 

An econometric model was used to 

assess the impact that volume control 

has on the prices producers receive for 

their commodity. Without volume 

control, spearmint oil markets would 

likely be over-supplied, resulting in low 

producer prices and a large volume of 

oil stored and carried over to the next 

crop year. The model estimates how 

much lower producer prices would 

likely be in the absence of volume 

controls. 

The Committee estimated the trade 

demand for the 2011–2012 marketing 

year for both classes of oil at 1,930,000 

pounds, and that the expected 

combined carry-in will be 414,288 

pounds. This results in a combined 

required salable quantity of 1,515,712 

pounds. With volume control, sales by 

producers for the 2011–2012 marketing 

year will be limited to 1,707,757 pounds 

(the salable quantity for both classes of 

spearmint oil). 

The allotment percentages, upon 

which 2011–2012 producer allotments 

are based, are 34 percent for Scotch and 

44 percent for Native. Without volume 

controls, producers would not be 

limited to these allotment levels, and 

could produce and sell additional 

spearmint. The econometric model 

estimated a $1.89 decline in the season 

average producer price per pound (from 

both classes of spearmint oil) resulting 

from the higher quantities that would be 

produced and marketed without volume 

control. The surplus situation in the 

spearmint oil market that would exist 

without volume controls in 2011–2012 

also would likely dampen prospects for 

improved producer prices in future 

years because of the buildup in stocks. 

The use of volume controls allows the 

industry to fully supply spearmint oil 

markets while avoiding the negative 

consequences of over-supplying these 

markets. The use of volume controls is 

believed to have little or no effect on 

consumer prices of products containing 

spearmint oil and will not result in 

fewer retail sales of such products. 

The Committee discussed alternatives 

to the recommendations contained in 

this rule for both classes of spearmint 

oil. The Committee discussed and 

rejected the idea of recommending that 

there not be any volume regulation for 

both classes of spearmint oil because of 

the severe price-depressing effects that 

would occur without volume control. 

After computing the initial 29.5 

percent Scotch spearmint oil allotment 

percentage, the Committee considered 

various alternative levels of volume 

control for Scotch spearmint oil. 

Considered levels ranged from 30 

percent to 40 percent. Given the 

moderately improving marketing 

conditions for spearmint oil, there was 

consensus that the allotment percentage 

for Scotch spearmint oil for 2011–2012 

marketing year should be more than the 

percentage established for 2010–2011 

(28 percent). After considerable 

discussion, in a vote of six members in 

favor and two members opposed, the 

Committee determined that 694,774 

pounds and 34 percent is the most 

effective salable quantity and allotment 

percentage, respectively, for the 2011– 

2012 marketing year. The two dissenting 

members felt that the salable quantity 

and allotment percentage should be set 

at some unidentified higher level. 

The Committee was also able to reach 

a consensus regarding the level of 

volume control for Native spearmint oil. 

After first determining the computed 

allotment percentage at 39.7 percent, the 

Committee voted unanimously to 

recommend 1,012,983 pounds and 44 

percent for the effective salable quantity 

and allotment percentage, respectively, 

for the 2011–2012 marketing year. 

As noted earlier, the Committee’s 

recommendation to establish salable 

quantities and allotment percentages for 

both classes of spearmint oil was made 

after careful consideration of all 

available information, including: (1) The 

estimated quantity of salable oil of each 

class held by producers and handlers; 

(2) the estimated demand for each class 

of oil; (3) the prospective production of 

each class of oil; (4) the total of 

allotment bases of each class of oil for 

the current marketing year and the 

estimated total of allotment bases of 

each class for the ensuing marketing 

year; (5) the quantity of reserve oil, by 

class, in storage; (6) producer prices of 

oil, including prices for each class of oil; 

and (7) general market conditions for 

each class of oil, including whether the 

estimated season average price to 

producers is likely to exceed parity. 

Based on its review, the Committee 

believes that the salable quantity and 

allotment percentage levels 

recommended will achieve the 

objectives sought. 

If there were no regulations in effect 

for the coming marketing year, the 

Committee believes that the industry 

would return to the pronounced cyclical 

price patterns that occurred prior to the 

order, and that prices in 2011–2012 

would decline substantially below 

current levels. 

According to the Committee, the 

established salable quantities and 

allotment percentages are expected to 

facilitate the goal of establishing orderly 

marketing conditions for Far West 

spearmint oil. 

As previously stated, annual salable 

quantities and allotment percentages 

have been issued for both classes of 

spearmint oil since the order’s 

inception. Reporting and recordkeeping 

requirements have remained the same 

for each year of regulation. These 

requirements have been approved by the 

Office of Management and Budget under 

OMB Control No. 0581–0178, Vegetable 

and Specialty Crops. Accordingly, this 

action will not impose any additional 

reporting or recordkeeping requirements 

on either small or large spearmint oil 

producers or 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. 

Furthermore, USDA has not identified 

any relevant Federal rules that 

duplicate, overlap, or conflict with this 

final rule. 

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Federal Register / Vol. 76, No. 93 / Friday, May 13, 2011 / Rules and Regulations 27859 

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 

spearmint oil industry and all interested 

persons were invited to attend the 

meeting and participate in Committee 

deliberations on all issues. Like all 

Committee meetings, the October 13, 

2010, 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 March 4, 2011 (76 FR 

11971). Copies of the rule were 

provided to Committee staff, which in 

turn made it available to all Far West 

spearmint oil producers, handlers, and 

interested persons. Finally, the rule was 

made available through the Internet by 

USDA and the Office of the Federal 

Register. A 30-day comment period 

ending April 4, 2011, 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 Laurel May at 

the previously mentioned address in the 

FOR FURTHER INFORMATION CONTACT

section. 

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. 

List of Subjects in 7 CFR Part 985 

Marketing agreements, Oils and fats, 

Reporting and recordkeeping 

requirements, Spearmint oil. 

For the reasons set forth in the 

preamble, 7 CFR part 985 is amended as 

follows: 

PART 985—MARKETING ORDER 

REGULATING THE HANDLING OF 

SPEARMINT OIL PRODUCED IN THE 

FAR WEST 

■ 1. The authority citation for 7 CFR 

part 985 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. A new § 985.230 is added to read 

as follows: 

Note: This section will not appear in the 

Code of Federal Regulations. 

§ 985.230 Salable quantities and allotment 

percentages—2011–2012 marketing year. 

The salable quantity and allotment 

percentage for each class of spearmint 

oil during the marketing year beginning 

on June 1, 2011, shall be as follows: 

(a) Class 1 (Scotch) oil—a salable 

quantity of 694,774 pounds and an 

allotment percentage of 34 percent. 

(b) Class 3 (Native) oil—a salable 

quantity of 1,012,983 pounds and an 

allotment percentage of 44 percent. 

Dated: May 9, 2011. 

Ellen King, 

Acting Administrator, Agricultural Marketing 

Service. 

[FR Doc. 2011–11716 Filed 5–12–11; 8:45 am] 

BILLING CODE 3410–02–P 

SMALL BUSINESS ADMINISTRATION 

13 CFR Part 124 

[Docket No.: SBA–2011–0013] 

8(a) Business Development Program 

Regulation Changes; Tribal 

Consultation 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Notice of tribal consultation 

meetings; request for comments. 

SUMMARY: On February 11, 2011, the 

U.S. Small Business Administration 

(SBA or Agency) published a final rule 

in the Federal Register making changes 

to the regulations governing the section 

8(a) Business Development (BD) 

program. SBA announces that it is 

holding tribal consultation meetings in 

Milwaukee, Wisconsin and Anchorage, 

Alaska to discuss the recent changes to 

the 8(a) BD program regulations, 

specifically to take comments on the 

mandatory reporting of community 

benefits provision scheduled to take 

effect on September 9, 2011, unless SBA 

further delays implementation through 

publication in the Federal Register. 

Testimony presented at these tribal 

consultation meetings will become part 

of the administrative record for SBA’s 

consideration when the Agency 

deliberates on approaches to tracking 

community benefits. 

DATES: Comments are requested on or 

before June 8, 2011. 

The Tribal Consultation meetings will 

be held on Wednesday, June 15, 2011, 

from 1 p.m. to 4 p.m. at the National 

Congress of American Indian Mid Year 

Conference in the Hyatt Regency in 

Milwaukee, Wisconsin and on 

Thursday, June 23, 2011, from 1 p.m. to 

4 p.m. at the National 8(a) Association 

Summer Conference in the Dena’ina 

Civic and Convention Center in 

Anchorage, Alaska 99501. 

The tribal consultation meeting preregistration deadline date is June 8, 

2011 at 5 p.m. (Eastern Standard Time) 

for the Milwaukee location and June 16, 

2011 at 5 p.m. (Eastern Standard Time) 

for the Anchorage location. 

ADDRESSES: You may submit comments, 

identified by Docket Number SBA– 

2011–0013 using the following methods: 

Federal eRulemaking Portal: http:// 

www.regulations.gov. Identify 

comments by ‘‘Docket Number SBA– 

2011–0013, 8(a) Business Development 

program Regulation Changes; Tribal 

Consultation,′′ and follow the 

instructions for submitting comments. 

Mail: U.S. Small Business 

Administration, Office of Business 

Development, 490 3rd Street, SW., 

Washington, DC 20416. 

SBA will post comments on http:// 

www.regulations.gov. If you wish to 

submit confidential business 

information (CBI) as defined in the User 

Notice at http://www.regulations.gov, 

please submit information to Ms. 

LaTanya Wright, Senior Advisor for 

Office of Business Development, 490 

3rd Street, SW., Washington, DC 20416. 

Highlight the information that you 

consider to be CBI, and explain why you 

believe this information should be held 

confidential. SBA will review the 

information and make the final 

determination of whether it will publish 

the information or not. 

1. The Milwaukee Tribal Consultation 

meeting address is the Hyatt Regency, 

333 West Kilbourn Avenue, Milwaukee, 

WI 53203. 

2. The Anchorage Tribal Consultation 

address is the Dena’ina Civic and 

Convention Center, 600 W. 9th Avenue, 

Anchorage, AK 99501. 

3. Send pre-registration requests to 

attend and/or testify to Ms. Chequita 

Carter, Office of Native American 

Affairs, U.S. Small Business 

Administration, 409 Third Street, SW., 

Washington, DC 20416; by email; 

chequita.carter@sba.gov or by facsimile 

to (202) 205–6139. 

FOR FURTHER INFORMATION CONTACT: If 

you have questions on SBA’s Final Rule 

for the 8(a) BD program, call or e-mail 

Ms. LaTanya Wright, Senior Advisor, 

Office of Business Development, at (202) 

205–5852, or LaTanya.Wright@sba.gov. 

If you have questions about registering 

or attending the tribal consultation, 

please contact Ms. Chequita Carter at 

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