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

48868 

Vol. 74, No. 185 

Friday, September 25, 2009 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 1250 

[Doc. No. AMS–PY–08–0032] 

Amendment to Egg Research and 

Promotion Order and Regulations To 

Increase the Rate of Assessment 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Proposed rule. 

SUMMARY: This proposed rule would 

amend the Egg Research and Promotion 

Order to increase the assessment rate on 

egg producers paying assessments to the 

American Egg Board (AEB) from 10 

cents to 15 cents per 30-dozen case of 

commercial eggs, provided the increase 

is approved by egg producers voting in 

a referendum. This proposal would also 

make a conforming amendment to the 

regulations. AEB, which administers the 

Order, recommended this action to 

sustain and expand its national 

promotion, research, and consumer 

information program. 

DATES: Comments must be received on 

or before November 24, 2009. 

ADDRESSES: Interested persons are 

invited to submit written comments on 

the Internet at http:// 

www.regulations.gov or to Angela C. 

Snyder; Research and Promotion; 

Standards, Promotion, & Technology 

Branch; Poultry Programs, AMS, U.S. 

Department of Agriculture; 1400 

Independence Avenue, SW., Stop 0256; 

Washington, DC 20250–0259; fax (202) 

720–2930. Comments should reference 

the docket number and the date and 

page number of this issue of the Federal 

Register and will be available for public 

inspection in the Office of the Docket 

Clerk, Poultry Programs, AMS, USDA, 

Room 3953–S, 1400 Independence 

Avenue, SW., Washington, DC 20250– 

0259, during regular business hours or 

can be viewed at: http:// 

www.regulations.gov. All comments 

received will be posted without change, 

including any personal information 

provided. 

FOR FURTHER INFORMATION CONTACT: 

Angela C. Snyder; Research and 

Promotion; Standards, Promotion & 

Technology Branch; Poultry Programs, 

AMS, USDA, 1400 Independence 

Avenue, SW., Room 3932–S; 

Washington, DC 20250–0256; telephone: 

(202) 720–4476; fax (202) 720–2930; or 

e-mail: Angie.Snyder@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: 

Executive Order 12866 

The Office of Management and Budget 

(OMB) has waived the review process 

required by Executive Order 12866 for 

this action. 

Executive Order 12988 

This proposed rule has been reviewed 

under Executive Order 12988, Civil 

Justice Reform. The rule is not intended 

to have a retroactive effect and will not 

affect or preempt any State or Federal 

law authorizing promotion or research 

relating to an agricultural commodity. 

The Act provides that administrative 

proceedings must be exhausted before 

parties may file suit in court. Section 14 

of the Act allows those subject to the 

Order to file a written petition with the 

Secretary of Agriculture (Secretary) if 

they believe that the Order, any 

provision of the Order, or any obligation 

imposed in connection with the Order, 

is not in accordance with the law. In 

any petition, the person may request a 

modification of the Order or an 

exemption from the Order. The 

petitioner will have the opportunity for 

a hearing on the petition. Afterwards, an 

Administrative Law Judge (ALJ) will 

issue a decision. If the petitioner 

disagrees with the ALJ’s ruling, the 

petitioner has 30 days to appeal to the 

Judicial Officer, who will issue a ruling 

on behalf of the Secretary. If the 

petitioner disagrees with the Secretary’s 

ruling, the petitioner may file, within 20 

days, an appeal in the U.S. District 

Court for the district where the 

petitioner resides or conducts business. 

Initial Regulatory Flexibility Act 

Analysis and Paperwork Reduction Act 

In accordance with the Regulatory 

Flexibility Act (RFA) (5 U.S.C. 601– 

612), AMS has considered the economic 

impact of this action on the small 

producers that would be affected by this 

rule. The purpose of the RFA is to fit 

regulatory action to scale on businesses 

subject to such action so that small 

businesses will not be 

disproportionately burdened. 

According to AEB, approximately 245 

producers are subject to the provisions 

of the Order, including paying 

assessments. Under the current Order, 

producers in the 48 contiguous United 

States and the District of Columbia who 

own more than 75,000 laying hens each 

currently pay a mandatory assessment 

of 10 cents per 30-dozen case of eggs. 

Handlers are responsible for collecting 

and remitting assessments to the Board. 

There are approximately 160 egg 

handlers who collect assessments. 

Assessments under the program are 

used by AEB to finance promotion, 

research, and consumer information 

programs designed to increase consumer 

demand for eggs in domestic and 

international markets. At the current 

rate of 10 cents per case, assessments 

generate about $20 million in annual 

revenues. The Order is administered by 

AEB under supervision of the U.S. 

Department of Agriculture. 

In 13 CFR part 121, the Small 

Business Administration (SBA) defines 

small agricultural producers as those 

having annual receipts of no more than 

$750,000 and small agricultural service 

firms as those having annual receipts of 

no more than $7 million. Under this 

definition, the vast majority of the egg 

producers that would be affected by this 

rule would not be considered small 

entities. Producers owning 75,000 or 

fewer laying hens are exempt from this 

program. 

Given that a laying hen produces 

approximately 22 dozen eggs per year, 

production from 75,000 laying hens 

would result in 1.65 million dozen eggs. 

With a wholesale price of $0.965 per 

dozen, total annual receipts would be 

$1.59 million, which is well above the 

definition used to describe a small farm. 

The wholesale price of eggs would need 

to drop to approximately $0.45 per 

dozen before a producer with 75,000 

hens could be classified as a small farm 

under the SBA definition. 

The present 10-cent assessment is 

equivalent to approximately 0.28 

percent of the wholesale price of a 30- 

dozen case of large eggs. An assessment 

rate of 15 cents per 30-dozen case would 

be equivalent to approximately 0.42 

percent of the wholesale price of a 30- 

dozen case of large eggs. This wholesale 


jlentini on DSKJ8SOYB1PROD with PROPOSALS
Federal Register / Vol. 74, No. 185 / Friday, September 25, 2009 / Proposed Rules 48869 

price is based on the price per dozen 

Grade A large egg price reported in the 

‘‘Weekly Combined Regional Shell 

Eggs’’ report (WA_PY001) published by 

USDA’s Poultry Market News and 

Analysis Branch. 

According to AEB, additional revenue 

is required in order to sustain and 

expand its programs. This proposed 

increase is consistent with sections 8 

and 9 of the Act (7 U.S.C. 2701–2718) 

that permit AEB to recommend an 

increase in the assessment rate up to 20 

cents per case and request that a 

referendum be held if such an increase 

is supported by a scientific study, 

marketing analysis, or other similar 

competent evidence. 

AEB conducted a marketing analysis 

demonstrating that a 5-cent increase in 

the assessment rate (to a total of 15 

cents) is appropriate to effectively 

strengthen AEB’s programs. The 

marketing analysis addressed the need 

for a funding increase due to the 

following factors: (1) Inflation, 

including the overall increases in all 

costs associated with doing business 

since the last increase in AEB’s 

assessment rate in 1994; (2) AEB’s 

advertising program, including the 

increased cost of advertising 

expenditures as well as new media 

outlets; (3) AEB’s nutrition program, 

including additional research needed to 

examine both the nutritional benefits of 

eggs and the relationship between eggs 

and increased serum cholesterol levels 

and heart disease risk; and (4) AEB’s 

food safety program, specifically 

expanding research to cover food safety 

as the public becomes more concerned 

about food safety issues. 

With the proposed increased 

assessment, the financial commitment 

of the U.S. egg industry for generic 

research and promotion activity could 

increase by 50 percent, from 

approximately $20 million to an 

estimated $30 million annually. 

AEB considered several alternatives, 

including the status quo of 10 cents per 

case, an increase to 20 cents per case, 

and an increase to 15 cents per case. 

AEB ultimately concluded that the 

status quo would not allow AEB even to 

sustain its programs effectively, and that 

an increase to 15 cents was sufficient to 

maintain and expand its promotion, 

research, and consumer information 

programs. 

This rule does not impose additional 

recordkeeping requirements on egg 

producers or collecting handlers. There 

are no Federal rules that duplicate, 

overlap, or conflict with this rule. 

In accordance with OMB regulation 5 

CFR part 1320 which implements the 

Paperwork Reduction Act of 1995 [44 

U.S.C. Chapter 35], the information 

collection and recordkeeping 

requirements that are imposed by the 

Order and Rules and Regulations have 

been approved previously under OMB 

control number 0581–0093. This rule 

does not result in a change to those 

information collection and 

recordkeeping requirements. 

We have performed this Initial 

Regulatory Flexibility Analysis 

regarding the impact of these proposed 

amendments to the Order and Rules and 

Regulations on small entities, and we 

invite comments concerning potential 

effects of these amendments on small 

businesses. 

Background 

The Egg Research and Consumer 

Information Act (7 U.S.C. 2701–2718, 

hereinafter referred to as the ‘‘Act’’) 

established a national egg research and 

promotion program—administered by 

AEB—that is financed through industry 

assessments and subject to oversight by 

AMS. This program of promotion, 

research, and consumer information is 

designed to strengthen the position of 

eggs in the marketplace and to establish, 

maintain, and expand markets for eggs. 

This program is financed by 

assessments on egg producers owning 

more than 75,000 laying hens. The Egg 

Research and Promotion Order specifies 

that handlers are responsible for 

collecting and remitting the producer 

assessments to AEB, reporting their 

handling of eggs, and maintaining 

records necessary to verify their reports. 

This rule proposes to increase the 

assessment rate on egg producers from 

10 cents to 15 cents per case of 

commercial eggs. Only producers in the 

contiguous United States are subject to 

the program, and producers owning 

75,000 or fewer laying hens are exempt 

from paying assessments. 

In order to sustain and expand the 

promotion, research, and consumer 

information programs at present levels, 

AEB believes that additional revenue is 

required. The proposed increase is 

estimated to generate $10 million in 

new revenue, depending upon 

production levels. Currently, AEB 

collects approximately $20 million per 

year. A 5-cent increase in the 

assessment rate is expected to increase 

the total to about $30 million per year. 

Section 8 of the Act provides for an 

assessment rate up to 20 cents per case. 

Section 1250.347 currently provides for 

an assessment at a rate not to exceed 10 

cents per 30-dozen case of eggs, or 

equivalents thereof. Any increase from 

the current 10-cent rate established in 

the Order must be approved by egg 

producers voting in a referendum. 

Section 9 of the Act provides that if AEB 

determines, based on a scientific study, 

marketing analysis, or other similar 

competent evidence, that an increase in 

the assessment rate is necessary to 

effectuate the declared policy of the Act, 

AEB may recommend the increase to the 

Secretary and request that a referendum 

be held to vote on the assessment 

increase. 

Marketing Analysis and AEB 

Recommendation 

Consequently, AEB conducted a 

marketing analysis demonstrating that a 

5-cent increase in the assessment rate to 

a total of 15 cents was appropriate to 

effectively strengthen AEB’s programs. 

Because of inflation, AEB estimates 

that an estimated $14.7 million would 

be required to duplicate the same media 

program in 2008 as was conducted for 

$7.9 million in 1995, when the 

assessment rate was last increased. 

Despite the success of the advertising 

program, AEB’s media budget has not 

kept pace with media inflation. Over the 

last 10 years, the budget has remained 

relatively flat, averaging roughly $7.9 

million annually. Meanwhile, the cost 

of media has steadily increased at the 

rate of 5 percent each year. If AEB’s 

advertising budget matched inflation, it 

would be more than 50 percent larger 

today than it is, and it would reach $22 

million in 2017. By not keeping up with 

inflation, each year AEB has been 

reaching fewer consumers and less 

often. 

Ten years ago, AEB expanded its 

research to include studies on the 

nutritional benefits of eggs, including 

satiety and weight control; 

bioavailability of egg nutrients; egg 

protein and muscle retention in the 

elderly; egg lutein and eye health; egg 

choline and brain development, dietary 

choline requirements, and the 

relationship between choline and 

reduction of heart-disease risk; and eggs 

and school performance. 

The expansion of the research 

programs over the past decade has been 

an essential component of AEB’s 

mission. To continue to fund the best 

and most relevant research projects, 

AEB needs to increase its level of 

research funding to account for the 

rising cost of studies today compared to 

10 years ago, the increased number of 

research topics, and publicizing 

research findings. 

In addition to research into egg 

nutrients, AEB has also funded research 

and other programs related to food 

safety as the public’s food security 

concerns have increased. AEB has 

funded research on Salmonella, avian 

influenza, transportation systems, 


jlentini on DSKJ8SOYB1PROD with PROPOSALS
48870 Federal Register / Vol. 74, No. 185 / Friday, September 25, 2009 / Proposed Rules 

cooking methods, and statistical 

analyses. Not only do these studies deal 

with current food safety issues, but they 

also help the egg industry prepare for 

and address potential risks. 

At the March 27, 2008, board meeting, 

AEB members voted unanimously to 

recommend that the assessment rate be 

increased from 10 cents to 15 cents per 

30-dozen case of commercial eggs. 

Proposed Changes and Referendum 

This rule would amend the Order as 

well as the implementing Rules and 

Regulations. Section 1250.347 of the 

Order states that the assessment rate is 

not to exceed 10 cents per 30-dozen case 

of eggs, provided that no more than 

such assessment shall be made on any 

case of eggs. Section 1250.514 provides 

for an assessment rate of 10 cents per 

case of commercial eggs handled for the 

account of each producer, with each 

case being subject to assessment only 

once. Accordingly, section 1250.347 of 

the Order and section 1250.514 of the 

Rules and Regulations would be revised 

to reflect an assessment rate of 15 cents 

per case. In order to better reflect the 

provisions of the Act, section 1250.347 

of the Order would be amended to 

reflect both the maximum assessment 

rate authorized under the Act as well as 

the assessment rate itself. 

A 60-day comment period is provided 

to allow interested parties to respond to 

this proposal. All written comments 

received by the date specified in 

response to this rule will be considered 

prior to conducting the referendum. 

After an opportunity for public 

comment, a referendum will be held 

among egg producers not exempt from 

the Act. Producers engaged in the 

production of commercial eggs during a 

representative period determined by the 

Secretary will be eligible to vote on the 

assessment rate change recommended 

by AEB. 

All known eligible egg producers will 

receive information in the mail 

regarding the referendum. 

The increase in the assessment rate 

shall become effective if the change is 

approved or favored by not less than 

two-thirds of the producers voting in the 

referendum, or a majority of such 

producers if they represent not less than 

two-thirds of the commercial eggs 

produced by those voting. 

List of Subjects in 7 CFR Part 1250 

Administrative practice and 

procedure, Advertising, Agricultural 

research, Eggs and egg products, 

Reporting and recordkeeping 

requirements. 

For the reasons set forth in the 

preamble 7 CFR part 1250 is proposed 

to be amended as follows: 

PART 1250—EGG RESEARCH AND 

PROMOTION 

1. The authority citation of part 1250 

continues to read as follows: 

Authority: 7 U.S.C. 2701–2718 and 7 

U.S.C. 2401. 

2. Section 1250.347 is revised to read 

as follows: 

§ 1250.347 Assessments. 

Each handler designated in § 1250.349 

and pursuant to regulations issued by 

the Board shall collect from each 

producer, except for those producers 

specifically exempted in § 1250.348, 

and shall pay to the Board at such times 

and in such manner as prescribed by 

regulation issued by the Board an 

assessment at a rate of 15 cents per 30- 

dozen case of eggs, or the equivalent 

thereof, for such expenses and 

expenditures, including provisions for a 

reasonable reserve and those 

administrative costs incurred by the 

Department of Agriculture after this 

subpart is effective, as the Secretary 

finds are reasonable and likely to be 

incurred by the Board and the Secretary 

under this subpart, except that no more 

than one such assessment shall be made 

on any case of eggs. The assessment rate 

shall not exceed 20 cents per case (or 

the equivalent of a case) of commercial 

eggs. 

3. In § 1250.514, the first sentence is 

revised to read as follows: 

§ 1250.514 Levy of assessments. 

An assessment rate of 15 cents per 

case of commercial eggs is levied on 

each case of commercial eggs handled 

for the account of each producer. * * * 

Dated: September 21, 2009. 

Rayne Pegg, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. E9–23150 Filed 9–24–09; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2009–0776; Directorate 

Identifier 2009–NE–32–AD] 

RIN 2120–AA64 

Airworthiness Directives; Dowty 

Propellers R408/6–123–F/17 Model 

Propellers 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Notice of proposed rulemaking 

(NPRM). 

SUMMARY: We propose to adopt a new 

airworthiness directive (AD) for the 

products listed above. This proposed 

AD results from mandatory continuing 

airworthiness information (MCAI) 

issued by an aviation authority of 

another country to identify and correct 

an unsafe condition on an aviation 

product. The MCAI describes the unsafe 

condition as: Friction or contact 

between a propeller de-ice bus bar and 

the backplate assembly can cause failure 

of the bus bar and a consequent 

intermittent short circuit. Such a short 

circuit can cause a dual AC generator 

shutdown that, particularly in 

conjunction with an engine failure in 

icing conditions, could result in 

reduced controllability of the airplane. 

We are proposing this AD to prevent 

an in-flight double generator failure, 

which could result in reduced 

controllability of the airplane. 

DATES: We must receive comments on 

this proposed AD by October 26, 2009. 

ADDRESSES: You may send comments by 

any of the following methods: 

• Federal eRulemaking Portal: Go to 

http://www.regulations.gov and follow 

the instructions for sending your 

comments electronically. 

• Mail: Docket Management Facility, 

U.S. Department of Transportation, 1200 

New Jersey Avenue, SE., West Building 

Ground Floor, Room W12–140, 

Washington, DC 20590–0001. 

• Hand Delivery: Deliver to Mail 

address above between 9 a.m. and 5 

p.m., Monday through Friday, except 

Federal holidays. 

• Fax: (202) 493–2251. 

Contact Dowty Propellers, Anson 

Business Park, Cheltenham Road East, 

Gloucester GL 29QN, UK; telephone: 44 

(0) 1452 716000; fax: 44 (0) 1452 

716001, for the service information 

identified in this proposed AD. 

Examining the AD Docket 

You may examine the AD docket on 

the Internet at http:// 


jlentini on DSKJ8SOYB1PROD with PROPOSALS