37932 Federal Register / Vol. 79, No. 128 / Thursday, July 3, 2014 / Rules and Regulations 

List of Subjects in 7 CFR Part 983 

Marketing agreements and orders, 

Pistachios, Reporting and recordkeeping 

requirements. 

For the reasons set forth in the 

preamble, 7 CFR part 983 is amended as 

follows: 

PART 983–PISTACHIOS GROWN IN 

CALIFORNIA, ARIZONA, AND NEW 

MEXICO 

■ 1. The authority citation for 7 CFR 

part 983 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. Section 983.150 is amended by 

revising paragraph (d)(1) to read as 

follows: 

§ 983.150 Aflatoxin regulations. 

* * * * * 

(d)* * * 

(1) Samples for testing. Prior to 

testing, each handler shall cause a 

representative sample to be drawn from 

each lot (‘‘lot samples’’) of sufficient 

weight to comply with Tables 1 and 2 

of this section. 

(i) At premises with mechanical 

sampling equipment (auto-samplers) 

approved by the USDA Federal-State 

Inspection Service, samples shall be 

drawn by the handler in a manner 

acceptable to the Committee and the 

USDA Federal-State Inspection Service. 

(ii) At premises without mechanical 

sampling equipment, sampling shall be 

conducted by or under the supervision 

of an inspector, or as approved under an 

alternative USDA-recognized inspection 

program. 

* * * * * 

Dated: June 27, 2014. 

Rex A. Barnes, 

Associate Administrator, Agricultural 

Marketing Service. 

[FR Doc. 2014–15596 Filed 7–2–14; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 985 

[Doc. No. AMS–FV–13–0088; FV14–985–2 

FR] 

Marketing Order Regulating the 

Handling of Spearmint Oil Produced in 

the Far West; Revision of 

Administrative Rules and Regulations 

Governing Issuance of Additional 

Allotment Base 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This final rule revises the 

procedure currently prescribed for 

issuing additional allotment base for 

Class 1 (Scotch) and Class 3 (Native) 

spearmint oil to new and existing 

producers under the Far West spearmint 

oil marketing order (order). The order 

regulates the handling of spearmint oil 

produced in the Far West and is 

administered locally by the Spearmint 

Oil Administrative Committee 

(Committee). This action reduces the 

number of new producers that are 

issued additional allotment bases each 

year from three to two for each class of 

oil; temporarily changes the method by 

which additional allotment base is 

allocated to existing producers to take 

into account small production 

operations; and amends the 

requirements for eligibility, retention, 

and transfer of additional allotment base 

issued to new and existing producers. 

Revising the procedure for issuing 

additional allotment base will help to 

ensure that new and existing spearmint 

oil producers have sufficient allotment 

base to be economically viable in the 

future. 

DATES: Effective Date: July 7, 2014. 

FOR FURTHER INFORMATION CONTACT: 

Manuel Michel or Gary D. Olson, 

Northwest Marketing Field Office, 

Marketing Order and Agreement 

Division, Fruit and Vegetable Program, 

AMS, USDA; Telephone: (503) 326– 

2724, Fax: (503) 326–7440, or Email: 

Manuel.Michel@ams.usda.gov or 

GaryD.Olson@ams.usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Jeffrey Smutny, 

Marketing Order and Agreement 

Division, Fruit and Vegetable Program, 

AMS, USDA, 1400 Independence 

Avenue SW., STOP 0237, Washington, 

DC 20250–0237; Telephone: (202) 720– 

2491, Fax: (202) 720–8938, or Email: 

Jeffrey.Smutny@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This 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, 

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 Orders 

12866, 13563, and 13175. 

This final rule has been reviewed 

under Executive Order 12988, Civil 

Justice Reform and is not intended to 

have retroactive effect. 

The Act provides that administrative 

proceedings must be exhausted before 

parties may file suit in court. Under 

section 608c(15)(A) of the Act, any 

handler subject to an order may file 

with USDA a petition stating that the 

order, any provision of the order, or any 

obligation imposed in connection with 

the order is not in accordance with law 

and request a modification of the order 

or to be exempted therefrom. A handler 

is afforded the opportunity for a hearing 

on the petition. After the hearing, USDA 

would rule on the petition. The Act 

provides that the district court of the 

United States in any district in which 

the handler is an inhabitant, or has his 

or her principal place of business, has 

jurisdiction to review USDA’s ruling on 

the petition, provided an action is filed 

not later than 20 days after the date of 

the entry of the ruling. 

This final rule revises the procedure 

currently prescribed for issuing 

additional allotment base for Class 1 

(Scotch) and Class 3 (Native) spearmint 

oil to new and existing producers under 

the order’s volume control provisions. 

This rule: (1) Reduces the number of 

allocations of additional allotment base 

issued to new producers each year from 

three to two for each class of oil; (2) 

temporarily changes the method by 

which additional allotment base is 

issued to existing producers to take into 

account producers whose total 

allotment base is below the size of the 

minimum economic enterprise (MEE) 

required to produce each class of 

spearmint oil; (3) provides that 

additional allotment base issued to 

existing producers under the revised 

procedure cannot be used to replace 

allotment base that has been previously 

transferred away; and (4) provides that 

additional allotment base issued under 

the revised procedure cannot be 

transferred to another producer for at 

least five years following issuance. This 

rule was recommended unanimously by 

the Committee at a meeting on 

November 6, 2013. 

Under the order, volume control 

measures are authorized to regulate the 

marketing of spearmint oil. Regulation 

is currently effectuated through the 

issuance of allotment bases to 

producers, the establishment of annual 

salable quantities and allotment 

percentages, and the reserve pooling of 

excess production. Allotment base is 

each producer’s quantified share of the 

spearmint oil market based on a 

statistical representation of past 

spearmint oil production, with 

accommodation for reasonable and 

normal adjustments to such base. The 


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order’s provisions allow for the 

regulation of spearmint oil volume 

available to the market. The objective of 

regulation is to establish orderly 

marketing conditions for spearmint oil 

and to ensure that there is sufficient 

spearmint oil supply available to meet 

market requirements. Since the 

program’s inception, volume regulation 

has been instrumental in promoting 

market and price stability within the 

industry. 

The order contains provisions to 

ensure that there is orderly market 

expansion and that new producers are 

able to produce and market spearmint 

oil. Section 985.53(d)(1) of the order 

requires the Committee to annually 

make additional allotment bases 

available for each class of oil in the 

amount of no more than 1 percent of the 

total allotment base for that class of oil. 

Fifty percent of these additional 

allotment bases shall be made available 

to new producers and 50 percent made 

available to existing producers. 

Section 985.53(d)(3) requires the 

Committee, with the approval of the 

Secretary, to establish rules and 

regulations to be used for determining 

the distribution of additional allotment 

bases. In 1982, these rules and 

regulations were established and have 

been subsequently revised on several 

occasions, most recently in 2003. Each 

time a revision is made, the Committee 

considers several important factors 

which include; the size of the MEE 

required for spearmint oil production, 

the applicant’s ability to produce 

spearmint oil, the area where the 

spearmint oil will be produced, and 

other economic and marketing factors 

that have a direct impact on spearmint 

oil producers. The Committee reviews 

regularly and updates as needed, the 

size of the MEE required for spearmint 

oil production. Under the order, MEE is 

the minimum size of production 

operation that the Committee has 

determined to be economically viable 

for each class of spearmint oil. Between 

1982 and 1997, the Committee revised 

the MEE for Scotch spearmint oil 

production three times and Native 

spearmint oil production four times. As 

a result, the MEE increased from 1,200 

pounds to 3,000 pounds for Scotch 

spearmint oil, and from 1,800 pounds to 

3,400 pounds for Native spearmint oil. 

Section 985.153(c)(1) of the order’s 

administrative rules and regulations 

prescribes the method by which 

additional allotment base is issued to 

new producers. In addition, 

§ 985.153(c)(2) prescribes the procedure 

by which additional allotment base is 

issued to existing producers. Lastly, 

§ 985.153(d) specifies certain 

requirements for spearmint oil 

producers who are issued additional 

allotment base pursuant to 

§ 985.153(c)(1) and (c)(2). 

The Committee met on November 6, 

2013, to consider the procedures for 

issuing additional allotment base to new 

and existing producers and to make 

recommendations regarding the revision 

of those procedures. As required by 

§ 985.153(c)(1)(ii), the Committee first 

considered the size of the MEE required 

to produce each class of spearmint oil. 

The Committee determined that the 

MEE levels for both classes of spearmint 

oil were no longer representative and 

needed to be revised. The Committee 

recognized that, as production and 

cultural practices for spearmint oil have 

continued to change and production 

costs per acre have increased, the 

Committee’s previously established 

MEE levels are too low and should be 

revised. As such, the Committee 

concluded that the MEE thresholds had 

increased to 5,121 pounds for Scotch 

spearmint oil and 5,812 pounds for 

Native spearmint oil. 

As a result of the Committee’s 

determination that the MEE thresholds 

have increased, and given the quantity 

of additional allotment base available to 

new producers each year (1⁄2 of 1 

percent of the total allotment base for 

each class of oil), the additional 

allotment base issued each year is only 

enough for two new producers, instead 

of three for each class of oil. 

The Committee’s initial calculation of 

the total allotment base of Scotch 

spearmint oil during the 2014–2015 

marketing year is approximately 

2,089,146 pounds. One half of one 

percent of this amount is 10,445 

pounds. With the MEE for Scotch 

spearmint oil determined to be 5,121 

pounds, issuing allotment base to two 

new producers will require 10,242 

pounds, which is within the amount of 

additional allotment base that will be 

available for the year. 

Likewise, the Committee’s initial 

calculation of the total allotment base of 

Native spearmint oil during the 2014– 

2015 marketing year is approximately 

2,371,350 pounds. One half of one 

percent of this amount is 11,856 

pounds. With the MEE for Native 

spearmint oil determined to be 5,812 

pounds, issuing allotment base to two 

new producers will require 11,624 

pounds, which is within the amount of 

additional allotment base that will be 

available for the year. 

Based on the above information, the 

Committee unanimously recommended 

reducing the number of new producers 

that are issued additional allotment base 

each year from three to two for each 

class of oil. The Committee also 

recommended that the additional 

allotment base issued to new producers 

not be transferrable for at least five years 

following issuance. The current 

retention period prior to transferability 

is two years. New producers issued 

additional allotment base under this 

rule will continue to be required to 

submit evidence of an ability to produce 

and sell oil from such allotment base in 

the first marketing year following 

issuance of such base. 

The Committee also gave 

consideration to existing producers with 

regards to the size of the MEE required 

to produce spearmint oil and the 

allocation of additional allotment base. 

After analyzing the Committee’s 

records, the Committee found that some 

existing producers hold allotment bases 

that are below the revised MEE levels. 

As a result, the Committee unanimously 

recommended that the additional 

allotment base that is made available 

each year to existing producers be 

temporarily allocated first to those 

eligible producers who hold allotment 

bases that are less than the MEE 

threshold in order to bring their total up 

to that level. 

Under this final rule, existing Scotch 

spearmint oil producers whose 

allotment bases are less than 5,121 

pounds as of October 17, 2012, who 

apply and who have the ability to 

produce additional quantities of 

spearmint oil, will be issued sufficient 

additional allotment base to bring them 

up to the MEE threshold over a threeyear period extending through the 

2016–2017 marketing year. In addition, 

existing Native spearmint oil producers 

who hold allotment bases of less than 

5,812 pounds as of October 17, 2012, 

who apply and who have the ability to 

produce additional quantities of 

spearmint oil, will be issued sufficient 

additional allotment base to bring them 

up to the MEE threshold over a fouryear period extending through the 

2017–2018 marketing year. 

The Committee estimates there will be 

21 producers of Scotch spearmint oil 

and 30 producers of Native spearmint 

oil eligible for additional allotment base 

under this final rule. It is expected that 

eligible existing producers of both 

Scotch and Native spearmint oil will 

apply for the full amount of additional 

allotment base made available to them. 

If there is any unallocated additional 

allotment base remaining for either 

Scotch spearmint oil during the 2016– 

2017 marketing year, or Native 

spearmint oil during the 2017–2018 

marketing year, such amount will be 

distributed on a prorated basis among 


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all existing producers of each respective 

class of spearmint oil. 

The Committee also recommended 

that additional allotment base issued to 

producers under the revised procedure 

not be used to replace allotment base 

that has been previously transferred 

away by that producer and that 

additional allotment base issued under 

the revised procedure not be 

transferrable for at least five years 

following issuance. 

Since the establishment of the order, 

one of the Committee’s primary 

objectives has been to help ensure that 

all spearmint oil producers are 

economically viable, as evidenced by 

holding allotment bases that are above 

the minimum economic threshold 

required for spearmint oil production. 

The Committee has worked to meet this 

objective by regularly determining the 

size of the MEE and issuing additional 

allotment base accordingly. Specifically, 

the Committee has raised the quantity of 

allotment base issued to new producers 

and increased the allotment bases of 

those existing producers who hold 

allotment bases that are below the levels 

that comprise the minimum economic 

threshold required for spearmint oil 

production. 

Another Committee objective has 

been to issue as many additional 

allotment bases as possible to new 

producers, at levels considered 

economically viable to each recipient. 

However, since the order limits the 

amount of additional allotment base 

issued to new producers, and because 

the size of the MEE required for 

spearmint oil production must be 

considered, the Committee has found it 

necessary to limit the number of new 

producers that are issued additional 

allotment base each year. Therefore, 

given the circumstances, the Committee 

believes the combination of these 

actions provides the best method 

available for optimizing the number of 

new producers that enter and remain in 

business, and also helps assure that 

there will continue to be a broad base 

of spearmint oil production. 

The procedure for issuing additional 

allotment base to new and existing 

producers has been modified several 

times since the inception of the order. 

Between 1982 and 1991, the entire Far 

West spearmint oil production area was 

treated as a single region for the purpose 

of issuing additional allotment base to 

new producers. The Committee 

determined the size and number of 

economic enterprises of additional 

allotment base for each class of 

spearmint oil to be made available to 

new producers. The additional 

allotment bases were then issued to new 

producers drawn from the lot of eligible 

individuals who had requested 

additional allotment base. 

In 1991, the order’s administrative 

rules and regulations were modified 

through the rulemaking process to 

divide the production area into four 

regions for purposes of issuing 

additional allotment base to new 

producers. An equal number of 

allotment bases were issued to new 

producers in each region based on the 

amount of additional allotment base 

available and the MEE determined by 

the Committee. Based on the 

Committee’s determinations, this 

effectively allowed one new producer 

annually from each of the four regions 

to be issued additional allotment base, 

for each class of spearmint oil. 

Again in 1997, rulemaking action was 

taken to reorganize and reduce the 

number of regions within the Far West 

production area from four to three. This 

revision had the effect of reducing the 

number of new producers that were 

issued additional allotment bases each 

year from four to three for each class of 

spearmint oil. The Committee 

recommended the revision with the 

purpose of distributing additional 

allotment bases within the production 

area and to increase the size of 

allotment bases issued to new producers 

to correspond to the size of the MEE. 

The Committee had determined that the 

size of the MEE for spearmint oil 

production had increased to a point 

where there was insufficient additional 

allotment base to issue economically 

sufficient quantities of base to new 

producers in all four regions. By 

reorganizing and reducing the number 

of regions to three, there was adequate 

additional allotment base to issue base 

to three new producers of each class of 

spearmint oil. In reaching its 

recommendation, the Committee 

weighed the importance of issuing as 

many additional allotment bases as 

possible against the need to issue such 

bases at levels considered economically 

viable to each recipient. 

In 2000, the three regions of the Far 

West production area were further 

reduced to two regions through the 

rulemaking process. However, the 

number of new producers issued 

additional allotment bases each year 

was maintained at three for each class 

of spearmint oil. As before, the 

Committee recommended the revision 

with the purpose of distributing 

additional allotment bases to new 

spearmint oil producers throughout the 

production area. 

This final rule reduces the number of 

new producers issued additional 

allotment base each year from three to 

two for each class of spearmint oil and 

is consistent with previous rulemaking. 

The Committee’s purpose, previously 

and now, is to ensure that a maximum 

number of eligible new producers are 

issued additional allotment bases each 

year at levels that are economically 

viable to produce each class of 

spearmint oil. 

Consistent with actions taken in the 

past, the Committee made its 

recommendation after carefully 

considering information available from 

its management records, Federal and 

State government sources, and industry 

participants. The Committee also 

considered the size of the MEE required 

for the production of each class of 

spearmint oil, historical statistics 

relating to the locations of the producers 

applying for the annual additional 

allotment base, and other factors, such 

as number of producers in the regulated 

production area and the amount of 

allotment base held by such producers. 

Based on its review, the Committee 

believes that the revision effectuated by 

this final rule is the most effective 

option available in order to continue 

fulfilling the order’s objectives. 

Final Regulatory Flexibility Analysis 

Pursuant to requirements set forth in 

the Regulatory Flexibility Act (RFA) (5 

U.S.C. 601–612), the Agricultural 

Marketing Service (AMS) has 

considered the economic impact of this 

action on small entities. Accordingly, 

AMS has prepared this final regulatory 

flexibility analysis. 

The purpose of the RFA is to fit 

regulatory actions to the scale of 

businesses subject to such actions in 

order that small businesses will not be 

unduly or disproportionately burdened. 

Marketing orders issued pursuant to the 

Act, and rules issued thereunder, are 

unique in that they are brought about 

through group action of essentially 

small entities acting on their own 

behalf. 

There are eight spearmint oil handlers 

subject to regulation under the order. In 

addition, there are approximately 36 

producers of Scotch spearmint oil and 

approximately 91 producers of Native 

spearmint oil in the regulated 

production area. Small agricultural 

service firms are defined by the Small 

Business Administration (SBA) as those 

having annual receipts of less than 

$7,000,000, and small agricultural 

producers are defined as those having 

annual receipts of less than $750,000 

(13 CFR 121.201). 

Based on the SBA’s definition of 

small entities, the Committee estimates 

that two of the eight handlers regulated 

by the order could be considered small 


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entities. Most of the handlers are large 

corporations involved in the 

manufacture and trade of essential oils 

and the products of essential oils in the 

international market. In addition, the 

Committee estimates that 19 of the 36 

Scotch spearmint oil producers and 29 

of the 91 Native spearmint oil producers 

could be classified as small entities 

under the SBA definition. Thus, many 

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 with spearmint during any 

given season. Crop rotation is an 

essential cultural practice in the 

production of spearmint oil for purposes 

of 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 market and price provides 

small producing entities with the ability 

to maintain sufficient cash flow and to 

meet annual expenses. Thus, the market 

and price stability provided by the order 

potentially benefits small producers 

more than the large producers. 

This final rule revises the procedure 

for issuing additional allotment base by 

reducing the number of additional 

allotment bases issued to new producers 

from three to two, for each class of 

spearmint oil. In addition, this rule 

increases the required retention period 

prior to transferability of additional 

allotment base issued to new producers 

from two years to five years following 

issuance. 

This final rule also temporarily 

changes the procedures for the 

allocation of additional allotment base 

by class to take into account existing 

producers that are below the MEE 

threshold. This revision is intended to 

help existing small spearmint oil 

producers by increasing their individual 

allotment bases to a level that 

approximates the MEE required for 

spearmint oil production. The action 

will help ensure that small existing 

spearmint oil producers have sufficient 

allotment base to remain economically 

viable in the future. Also, this rule 

provides that additional allotment base 

issued to existing small producers 

cannot be used to replace allotment base 

which has been previously transferred 

away. Finally, this rule provides that 

additional allotment base issued under 

the revised procedure cannot be 

transferred for at least five years 

following issuance. The revised 

procedure by which additional 

allotment base is allocated to existing 

producers will be in effect temporarily 

through May 31, 2017, for Scotch 

spearmint oil, and May 31, 2018, for 

Native spearmint oil, or until all 

producers who are eligible and apply 

have received enough allotment base to 

bring them up to the respective MEE 

level for each class of oil. Authority for 

this action is provided in § 985.53(d)(3) 

of the order. 

At the meeting on November 6, 2013, 

the Committee discussed the impact of 

the recommended revisions on handlers 

and producers in terms of costs and 

returns. Under the order, the Committee 

is responsible for determining how 

much MEE is required to produce each 

class of spearmint oil. The Committee 

determined the MEE size for the 2014– 

2015 and subsequent marketing years to 

be 5,121 pounds for Scotch spearmint 

oil and 5,812 pounds for Native 

spearmint oil. Taking this information 

into consideration, the Committee 

calculated that the number of new 

producers issued additional allotment 

bases each year would need to be 

reduced from three to two for each class 

of oil. While this action reduces the 

number of new producers issued 

additional allotment bases each year, 

each new producer will have a larger 

initial allotment base, thereby 

enhancing their long term economic 

viability in the spearmint oil industry. 

Additionally, the Committee 

estimates there are 21 producers of 

Scotch spearmint oil whose allotment 

bases are below the MEE threshold and 

it will take a total of 21,913 pounds of 

additional allotment base to raise these 

producers’ allotment bases up to the 

Scotch spearmint oil MEE threshold. 

Likewise, the Committee estimates there 

are 30 producers of Native spearmint oil 

whose allotment bases are below the 

MEE level and that it will take a total 

of 43,456 pounds of additional 

allotment base to raise these producers’ 

allotment bases to the size of the MEE 

required to make Native spearmint oil. 

While the amount of additional 

allotment base necessary to bring all 

spearmint oil producers’ allotment bases 

up to the MEE threshold is a fraction of 

the total allotment base, the benefits of 

this final rule will be significant to these 

small producers, as it may contribute to 

their potential economic viability well 

into the future. Without this revision, 

small spearmint oil producers may have 

been at a greater risk of not being able 

to continue to produce spearmint oil. 

Therefore, the benefits of this rule are 

expected to be greater for small 

producers than for larger entities. 

The Committee discussed several 

alternatives to the recommendations 

contained in this rule including not 

making any changes to the procedures 

as currently prescribed in the order. 

However, the Committee determined 

that not taking the MEE threshold into 

consideration when issuing additional 

base would have negatively impacted 

new and existing small producers. The 

Committee concluded that the most 

effective option was to revise the 

procedure for issuing additional 

allotment base in order to improve the 

economic viability of new and existing 

producers whose allotment bases are 

below the MEE threshold. 

The Committee also considered 

alternative MEE thresholds before 

deciding on the levels that were most 

representative of the production 

economics for each class of spearmint 

oil. The Committee believes the size of 

the MEE determined for the production 

of each class of spearmint oil is accurate 

and appropriate given the information 

available. 

In addition, the Committee 

considered the length of time that new 

and existing producers should be 

expected to hold onto additional 

allotment base issued under the revised 

procedure before such allotment base is 

able to be transferred to another 

producer. The Committee considered 

other retention periods other than the 

five year period recommended, 

including maintaining the two year 

retention period. However, it concluded 

that a five year retention requirement 

prior to transfer of additional allotment 

base issued under the revised procedure 

was a sufficient period for new and 

existing producers to demonstrate 


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viability in spearmint oil production 

and should not present an undue 

hardship on the producers being issued 

the additional allotment base. 

In its deliberations, the Committee 

considered all available information, 

including its determination of the size 

of the MEE required for spearmint oil 

production, historical statistics relating 

to the locations of the producers 

applying for the annual additional 

allotment base, and other factors such as 

the number of producers in the 

regulated production area and the 

amount of allotment base held by such 

producers. Based on those 

determinations, the full eight-member 

Committee unanimously recommended 

revising the procedure for issuing 

additional allotment base to new and 

existing spearmint oil producers for 

each class of oil. 

In accordance with the Paperwork 

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

Chapter 35), the order’s information 

collection requirements is currently 

approved by the Office of Management 

and Budget (OMB) and assigned OMB 

No. 0581–0178, Generic Vegetable and 

Specialty Crops. Upon publication of 

this final rule, a Justification of Change 

will be submitted to make minor 

modifications and updates to the 

appearance of two forms and adjust the 

burden, accordingly. 

This final rule revises the procedure 

currently prescribed for issuing 

additional allotment base for Class 1 

(Scotch) and Class 3 (Native) spearmint 

oil to new and existing producers under 

the Far West spearmint oil marketing 

order. 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. 

As noted in the initial regulatory 

flexibility analysis, USDA has not 

identified any relevant federal rules that 

duplicate, overlap or conflict with this 

final rule. 

AMS is committed to complying with 

the E-Government Act, to promote the 

use of the internet and other 

information technologies to provide 

increased opportunities for citizen 

access to Government information and 

services, and for other purposes. 

In addition, the Committee meetings 

were widely publicized throughout the 

spearmint oil industry and all interested 

persons were invited to attend the 

meetings and participate in Committee 

deliberations on all issues. Like all 

Committee meetings, the March 6, 2013, 

and the November 6, 2013, meetings 

were public meetings 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 May 6, 2014 (79 FR 25710). 

A copy of the rule was 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 

15-day comment period ending May 21, 

2014, was provided to allow interested 

persons to respond to the proposal. No 

comments were received. 

A small business guide on complying 

with fruit, vegetable, and specialty crop 

marketing agreements and orders may 

be viewed at: http://www.ams.usda.gov/ 

MarketingOrdersSmallBusinessGuide. 

Any questions about the compliance 

guide should be sent to Jeffrey Smutny 

at the previously mentioned address in 

the FOR FURTHER INFORMATION section of 

this document. 

After consideration of all relevant 

matter presented, including the 

information and recommendation 

submitted by the Committee and other 

available information, it is hereby found 

that this rule, as hereinafter set forth, 

will tend to effectuate the declared 

policy of the Act. 

It is further found that good cause 

exists for not postponing the effective 

date of this rule until 30 days after 

publication in the Federal Register (5 

U.S.C. 553) because applications for 

additional allotment base are made 

available in June and the drawing for 

new spearmint oil producers is held in 

August. In addition, existing producers 

need to be notified of the revision to the 

issuance of additional allotment base so 

they may plan their plantings 

accordingly. Further, producers are 

aware of this rule, which was 

recommended at a public meeting. Also, 

a 15-day comment period was provided 

for in the proposed rule and no 

comments were received. 

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. In § 985.153: 

■ a. Redesignate paragraphs (c)(1)(ii) 

and (c)(2)(ii) as (c)(1)(iii) and (c)(2)(iv) 

respectively; 

■ b. Add new paragraphs (c)(1)(ii), 

(c)(2)(ii) and (c)(2)(iii); 

■ c. Revise newly redesignated 

paragraphs (c)(1)(iii) and (c)(2)(iv); and 

■ Revise paragraph (d). 

The additions and revisions read as 

follows: 

§ 985.153 Issuance of additional allotment 

base to new and existing producers. 

* * * * * 

(c) * * * 

(1) * * * 

(ii) The Committee shall review all 

requests from new producers for 

additional allotment base made 

available pursuant to § 985.53(d)(1). 

(iii) Each year, the Committee shall 

determine the size of the minimum 

economic enterprise required to 

produce each class of oil. The 

Committee shall thereafter calculate the 

number of new producers who will 

receive allotment base under this 

section for each class of oil. The 

Committee shall include that 

information in its announcements to 

new producers in each region informing 

them when to submit requests for 

allotment base. The Committee shall 

determine whether the new producers 

requesting additional base have the 

ability to produce spearmint oil. The 

names of all eligible new producers 

from each region shall be placed in 

separate lots per class of oil. For each 

class of oil, separate drawings shall be 

held from a list of all applicants from 

Region A and from a list of all 

applicants from Region B. If, in any 

marketing year, there are no requests for 

additional base in a class of oil from 

eligible new producers in a region, such 

unallocated additional allotment base 

shall be issued to an eligible new 

producer whose name is selected by 

drawing from a list containing the 

names of all remaining eligible new 

producers from the other region for that 

class of oil. The Committee shall 

immediately notify each new producer 

whose name was drawn and issue that 

producer an allotment base in the 

appropriate amount. Allotment base 

issued to new producers under this 

section shall not be transferred for at 

least five years following issuance. 


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Federal Register / Vol. 79, No. 128 / Thursday, July 3, 2014 / Rules and Regulations 37937 

(2) * * * 

(ii) Class 1 base. With respect to the 

issuance of additional Class 1 allotment 

base to existing producers for the 2014– 

2015 through the 2016–2017 marketing 

years, existing producers with less than 

5,121 pounds of allotment base as of 

October 17, 2012, who request 

additional allotment base and who have 

the ability to produce additional 

quantities of Class 1 spearmint oil, shall 

be issued additional allotment base 

sufficient to bring them up to a level not 

to exceed 5,121 pounds: Provided, That 

such additional Class 1 allotment base 

shall be allocated to eligible producers 

on a pro-rata basis from available 

additional Class 1 allotment base: 

Provided further, That additional 

allotment base shall not be issued to any 

person if such additional allotment base 

would replace all or part of an allotment 

base that such person has previously 

transferred to another producer. 

Additional allotment base in excess of 

the amount needed to bring eligible 

producers up to 5,121 pounds of Class 

1 allotment base shall be distributed on 

a prorated basis among all existing 

producers who apply and who have the 

ability to produce additional quantities 

of spearmint oil. 

(iii) Class 3 base. With respect to the 

issuance of additional Class 3 allotment 

base for existing producers for the 2014– 

2015 through the 2017–2018 marketing 

years, existing producers with less than 

5,812 pounds of allotment base as of 

October 17, 2012, who request 

additional allotment base and who have 

the ability to produce additional 

quantities of Class 3 spearmint oil, shall 

be issued additional allotment base 

sufficient to bring them up to a level not 

to exceed 5,812 pounds: Provided, That 

such additional Class 3 allotment base 

shall be allocated to eligible producers 

on a pro-rata basis from available 

additional Class 3 allotment base: 

Provided further, That additional 

allotment base shall not be issued to any 

person if such additional allotment base 

would replace all or part of an allotment 

base that such person has previously 

transferred to another producer. 

Additional allotment base in excess of 

the amount needed to bring eligible 

producers up to 5,812 pounds of Class 

3 allotment base shall be distributed on 

a prorated basis among all existing 

producers who apply and who have the 

ability to produce additional quantities 

of spearmint oil. 

(iv) For each marketing year after 

2016–2017 for Class 1 oil and 2017– 

2018 for Class 3 oil, each existing 

producer of a class of spearmint oil who 

requests additional allotment base, and 

who has the ability to produce 

additional quantities of that class of 

spearmint oil, shall be eligible to receive 

a share of the additional allotment base 

issued for that class of oil. Additional 

allotment base issued by the Committee 

for a class of oil shall be distributed on 

a prorated basis among the eligible 

producers for that class of oil. The 

Committee shall immediately notify 

each producer who is to receive 

additional allotment base by issuing that 

producer an allotment base in the 

appropriate amount. Allotment base 

issued to existing producers under this 

section shall not be transferred for at 

least two years following issuance, 

except that additional allotment base 

allocated pursuant to paragraph (c)(2)(ii) 

and (c)(2)(iii) of this section shall not be 

transferred for at least five years 

following issuance. 

(d) The person receiving additional 

allotment base pursuant to this section 

shall submit to the Committee evidence 

of an ability to produce and sell oil from 

such allotment base in the first 

marketing year following issuance of 

such base. 

Dated: June 27, 2014. 

Rex A. Barnes, 

Associate Administrator, Agricultural 

Marketing Service. 

[FR Doc. 2014–15598 Filed 7–2–14; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF ENERGY 

10 CFR Part 430 

[Docket No. EERE–2010–BT–TP–0010] 

RIN 1904–AC21 

Energy Conservation Program for 

Consumer Products: Test Procedures 

for Residential Furnaces Fans; 

Correction 

AGENCY: Office of Energy Efficiency and 

Renewable Energy, Department of 

Energy. 

ACTION: Final rule; technical correction. 

SUMMARY: On January 3, 2014 the U.S. 

Department of Energy (DOE) published 

a final rule in the Federal Register that 

established the test procedure for 

residential furnace fans. Due to drafting 

errors, that document inadvertently 

removed necessary incorporation by 

reference material in the Code of 

Federal Regulations (CFR). This final 

rule rectifies this error by once again 

adding the removed material. 

DATES: Effective Date: July 3, 2014. 

The incorporation by reference of a 

certain standard listed in this 

rulemaking was approved by the 

Director of the Office of the Federal 

Register on October 4, 1993. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Ronald Majette, U.S. Department of 

Energy, Office of Energy Efficiency and 

Renewable Energy, Building 

Technologies Office, EE–5B, 1000 

Independence Avenue SW., 

Washington, DC, 20585–0121. 

Telephone: (202) 586–7935. Email: 

residential_furnace_fans@ee.doe.gov. 

Mr. Eric Stas, U.S. Department of 

Energy, Office of the General Counsel, 

GC–71, 1000 Independence Avenue 

SW., Washington, DC 20585–0121. 

Telephone: (202) 586–9507. Email: 

Eric.Stas@hq.doe.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

On January 3, 2014, DOE’s Office of 

Energy Efficiency and Renewable 

Energy published a test procedure final 

rule in the Federal Register titled, ‘‘Test 

Procedures for Residential Furnace 

Fans’’ (hereafter referred to as the 

‘‘January 2014 final rule’’). 79 FR 500. 

Since the publication of that final rule, 

it has come to DOE’s attention that, due 

to a technical oversight, the January 

2014 final rule incorrectly deleted the 

incorporation by reference of ASHRAE 

103–1993 within 10 CFR 430.3. The 

January 2014 final rule removed the 

existing reference to ASHRAE 103–1993 

and inserted a reference to ASHRAE 

103–2007; however, DOE intended to 

maintain the existing reference to 

ASHRAE 103–1993 (applicable to 

residential furnaces and boiler) while 

adding the incorporation by reference to 

ASHRAE 103–2007 (applicable to 

residential furnace fans). This final rule 

corrects this error by once again adding 

ASHRAE 103–1993 to the list of 

materials incorporated by reference at 

10 CFR 430.3. This final rule also 

renumbers section 430.3 to account for 

the additional reference. 

II. Need for Correction 

As published, the identified 

provisions in 10 CFR 430.3 (which only 

reference ASHRAE 103–2007 and do not 

reference ASHRAE 103–1993) will 

likely cause confusion and may mislead 

interested parties regarding how to 

properly conduct testing under DOE’s 

residential furnaces and boilers test 

procedure. The January 2014 final rule 

for furnace fans removed the 

incorporation by reference of ASHRAE 

103–1993. However, the incorporation 

by reference of ASHRAE 103–1993 into 

the CFR remains required because that 

standard is referenced by Appendix N to 

subpart B of 10 CFR part 430, ‘‘Uniform 

Test Method for Measuring the Energy 


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