This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents. Prices of

new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

78333 

Vol. 71, No. 250 

Friday, December 29, 2006 

1The Economic Analysis, Class III and Class IV 

Make Allowances, Tentative Final Decision is 

available on the Internet at http:// 

www.ams.usda.gov/dairy/proposals/ 

classIII_IV_make_all.htm. 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Parts 1000, 1001, 1005, 1006, 

1007, 1030, 1032, 1033, 1124, 1126 and 

1131 

[Docket No. AO–14–A74, et al.; DA–06–01] 

Milk in the Northeast and Other 

Marketing Areas; Interim Order 

Amending the Orders 

7 CFR 

part Marketing area AO Nos. 

1001 ..... Northeast ........... AO–14–A74. 

1005 ..... Appalachian ....... AO–388–A18. 

1006 ..... Florida ................ AO–356–A39. 

1007 ..... Southeast ........... AO–366–A47. 

1030 ..... Upper Midwest ... AO–361–A40. 

1032 ..... Central ............... AO–313–A49. 

1033 ..... Mideast .............. AO–166–A73. 

1124 ..... Pacific Northwest AO–368–A35. 

1126 ..... Southwest .......... AO–231–A68. 

1131 ..... Arizona ............... AO–271–A40. 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Interim final rule. 

SUMMARY: This order amends the 

manufacturing (make) allowances 

contained in the Class III and Class IV 

product price formulas applicable to all 

Federal milk marketing orders. 

Specifically, this decision adopts the 

following make allowances: cheese— 

$0.1682 per pound; butter—$0.1202 per 

pound; nonfat dry milk (NFDM)— 

$0.1570 per pound; and dry whey— 

$0.1956 per pound. More than the 

required number of producers have 

approved the issuance of the interim 

orders as amended. 

DATES: Effective Date: February 1, 2007. 

FOR FURTHER INFORMATION CONTACT: Jack 

Rower, Marketing Specialist, USDA/ 

AMS/Dairy Programs, Order 

Formulation and Enforcement Branch, 

STOP 0231—Room 2971, 1400 

Independence Ave., SW., Washington, 

DC 20250–0231, (202) 720–2357, e-mail 

address: jack.rower@usda.gov. 

SUPPLEMENTARY INFORMATION: This 

administrative rule is governed by the 

provisions of Sections 556 and 557 of 

Title 5 of the United States Code and, 

therefore, is excluded from the 

requirements of Executive Order 12866. 

This interim rule has been reviewed 

under Executive Order 12988, Civil 

Justice Reform. This rule is not intended 

to have a retroactive effect. This rule 

will not preempt any State or local laws, 

regulations, or policies, unless they 

present an irreconcilable conflict with 

this rule. 

The Agricultural Marketing 

Agreement Act of 1937 (the Act), as 

amended (7 U.S.C. 601–674), 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 

request modification or exemption from 

such order by filing with the 

Department of Agriculture (Department) 

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 the law. A 

handler is afforded the opportunity for 

a hearing on the petition. After a 

hearing, the Department 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 its principal place of 

business, has jurisdiction in equity to 

review the Department’s ruling on the 

petition, provided a bill in equity is 

filed not later than 20 days after the date 

of the entry of the ruling. 

Regulatory Flexibility Act and 

Paperwork Reduction Act 

In accordance with the Regulatory 

Flexibility Act (5 U.S.C. 601 et seq.), the 

Agricultural Marketing Service has 

considered the economic impact of this 

action on small entities and has certified 

that this interim rule will not have a 

significant economic impact on a 

substantial number of small entities. For 

the purpose of the Regulatory Flexibility 

Act, a dairy farm is considered a ‘‘small 

business’’ if it has an annual gross 

revenue of less than $750,000, and a 

dairy products manufacturer is a ‘‘small 

business’’ if it has fewer than 500 

employees. 

For the purposes of determining 

which dairy farms are ‘‘small 

businesses,’’ the $750,000 per year 

criterion was used to establish a 

marketing guideline of 500,000 pounds 

per month. Although this guideline does 

not factor in additional monies that may 

be received by dairy producers, it 

should be an inclusive standard for 

most ‘‘small’’ dairy farmers. For 

purposes of determining a handler’s 

size, if the plant is part of a larger 

company operating multiple plants that 

collectively exceed the 500-employee 

limit, the plant will be considered a 

large business even if the local plant has 

fewer than 500 employees. 

For the month of January 2006, the 

month the initial public hearing was 

held, the milk of 52,570 dairy farmers 

was pooled on the Federal order system. 

Of the total, 49,153 dairy farmers, or 94 

percent, were considered small 

businesses. During the same month, 536 

plants were regulated by or reported 

their milk receipts to be pooled and 

priced on a Federal order. Of the total, 

286 plants, or 53 percent, were 

considered small businesses. 

This decision provides that all orders 

be amended by changing the make 

allowances contained in the formulas 

used to compute component prices and 

the minimum class prices in all Federal 

milk orders. Specifically, the make 

allowance for butter would increase 

from $0.1150 to $0.1202 per pound; the 

make allowance for cheese would 

increase from $0.1650 to $0.1682 per 

pound; the make allowance for NFDM 

would increase from $0.1400 to $0.1570 

per pound; and the make allowance for 

dry whey would increase from $0.1590 

to $0.1956 per pound. 

The adoption of these new make 

allowances serves to approximate the 

average cost of producing cheese, butter, 

NFDM and dry whey for manufacturing 

plants located in Federal milk marketing 

areas. 

The established criteria for the make 

allowance changes are applied in an 

identical fashion to both large and small 

businesses and will not have any 

different impact on those businesses 

producing manufactured milk products. 

The Department’s economic analysis 1

discusses impacts of the order 

amendments on order participants 


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78334 Federal Register / Vol. 71, No. 250 / Friday, December 29, 2006 / Rules and Regulations 

including producers and manufacturers. 

Based on the economic analysis, we 

have concluded that the proposed 

amendments will not have a significant 

economic impact on a substantial 

number of small entities. 

The Agricultural Marketing Service is 

committed to complying with the EGovernment 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. 

This action does not require 

additional information collection that 

requires clearance by the Office of 

Management and Budget (OMB) beyond 

currently approved information 

collection. The primary sources of data 

used to complete the forms are routinely 

used in most business transactions. 

Forms require only a minimal amount of 

information which can be supplied 

without data processing equipment or a 

trained statistical staff. Thus, the 

information collection and reporting 

burden is relatively small. Requiring the 

same reports for all handlers does not 

significantly disadvantage any handler 

that is smaller than the industry 

average. 

Prior Documents in This Proceeding 

Notice of Hearing: Issued December 

30, 2005; published January 5, 2006 (71 

FR 545). 

Notice of Intent To Reconvene 

Hearing: Issued June 28, 2006; 

published June 23, 2006 (71 FR 36715). 

Notice To Reconvene Hearing: Issued 

August 31, 2006; published September 

6, 2006 (71 FR 52502). 

Tentative Final Decision: Issued 

November 17, 2006; published 

November 22, 2006 (71 FR 67467). 

Findings and Determinations 

The findings and determinations 

hereinafter set forth supplement those 

that were made when the Northeast and 

other marketing orders were first issued 

and when they were amended. The 

previous findings and determinations 

are hereby ratified and confirmed, 

except where they may conflict with 

those set forth herein. 

The following findings are hereby 

made with respect to the Northeast and 

other aforesaid marketing orders: 

(a) Findings upon the basis of the 

hearing record. Pursuant to the 

provisions of the Agricultural Marketing 

Agreement Act of 1937, as amended (7 

U.S.C. 601–674), and the applicable 

rules of practice and procedure 

governing the formulation of marketing 

agreements and marketing orders (7 CFR 

part 900), a public hearing was held 

upon certain proposed amendments to 

the tentative marketing agreements and 

to the orders regulating the handling of 

milk in the Northeast and other 

marketing areas. 

Upon the basis of the evidence 

introduced at such hearing and the 

record thereof, it is found that: 

(1) The said orders, as hereby 

amended on an interim basis, and all of 

the terms and conditions thereof, will 

tend to effectuate the declared policy of 

the Act; 

(2) The parity prices of milk, as 

determined pursuant to Section 2 of the 

Act, are not reasonable in view of the 

price of feeds, available supplies of 

feeds, and other economic conditions 

which affect market supply and demand 

for milk in the marketing areas, and the 

minimum prices specified in the orders, 

as hereby amended on an interim basis, 

are such prices as will reflect the 

aforesaid factors, ensure a sufficient 

quantity of pure and wholesome milk, 

and be in the public interest; and 

(3) The said orders, as hereby 

amended on an interim basis, regulate 

the handling of milk in the same 

manner as, and are applicable only to 

persons in the respective classes of 

industrial and commercial activity 

specified in, the marketing agreements 

upon which a hearing has been held. 

(b) Additional Findings. It is 

necessary and in the public interest to 

make these interim amendments to the 

Northeast and other marketing orders 

effective February 1, 2007. Any delay 

beyond that date would tend to disrupt 

the orderly marketing of milk in the 

aforesaid marketing areas. 

The interim amendments to this order 

are known to handlers. The tentative 

partial decision containing the proposed 

amendments to the orders was issued on 

November 17, 2006. 

The changes that result from these 

interim amendments will not require 

extensive preparation or substantial 

alteration in the method of operation for 

handlers. In view of the foregoing, it is 

hereby found and determined that good 

cause exists for making these interim 

order amendments effective on February 

1, 2007. 

(c) Determinations. It is hereby 

determined that: 

(1) The refusal or failure of handlers 

(excluding cooperative associations 

specified in Section 8c(9) of the Act) of 

more than 50 percent of the milk, which 

is marketed within the specified 

marketing areas, to sign a proposed 

marketing agreement, tends to prevent 

the effectuation of the declared policy of 

the Act; 

(2) The issuance of this interim order 

amending the Northeast and other 

marketing orders is the only practical 

means pursuant to the declared policy 

of the Act of advancing the interests of 

producers as defined in the orders as 

hereby amended; 

(3) The issuance of the interim order 

amending the Northeast and other 

marketing orders is favored by at least 

two-thirds of the producers who were 

engaged in the production of milk for 

sale in the respective marketing areas. 

List of Subjects in 7 CFR Parts 1000, 

1001, 1005, 1006, 1007, 1030, 1032, 

1033, 1124, 1126, and 1131 

Milk marketing orders. 

Orders Relative to Handling 

■ It is therefore ordered, that on and 

after the effective date hereof, the 

handling of milk in the Northeast and 

other marketing areas shall be in 

conformity and in compliance with the 

terms and conditions of the orders, as 

amended, and as hereby further 

amended on an interim basis, as 

follows: 

■ 1. The authority citation for 7 CFR 

parts 1000, 1001, 1005, 1006, 1007, 

1030, 1032, 1033, 1124, 1126, and 1131 

is revised to read as follows: 

Authority: 7 U.S.C. 601–674, and 7253. 

PART 1000—GENERAL PROVISIONS 

OF FEDERAL MILK MARKETING 

ORDERS 

■ 2. Section 1000.50 is amended by: 

■ a. Revising paragraph (l); 

■ b. Revising paragraph (m); 

■ c. Revising paragraph (n)(2); 

■ d. Revising paragraph (n)(3)(i); 

■ e. Revising paragraph (o); and 

■ f. Revising paragraph (q)(3). 

The revisions read as follows: 

§ 1000.50 Class prices, component prices, 

and advanced pricing factors. 

* * * * * 

(l) Butterfat price. The butterfat price 

per pound, rounded to the nearest onehundredth cent, shall be the U.S. 

average NASS AA Butter survey price 

reported by the Department for the 

month, less 12.02 cents, with the result 

multiplied by 1.20. 

(m) Nonfat solids price. The nonfat 

solids price per pound, rounded to the 

nearest one-hundredth cent, shall be the 

U.S. average NASS nonfat dry milk 

survey price reported by the Department 

for the month, less 15.70 and 

multiplying the result by 0.99. 

(n) * * * 

(1) * * * 

(2) Subtract 16.82 cents from the price 

computed pursuant to paragraph (n)(1) 

of this section and multiply the result 

by 1.383; 


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(3) * * * 

(i) Subtract 16.82 cents from the price 

computed pursuant to paragraph (n)(1) 

of this section and multiply the result 

by 1.572; and * * * 

(o) Other solids price. The other solids 

price per pound, rounded to the nearest 

one-hundredth cent, shall be the U.S. 

average NASS dry whey survey price 

reported by the Department for the 

month minus 19.56 cents, with the 

result multiplied by 1.03. * * * 

(q) * * * 

(3) An advanced butterfat price per 

pound, rounded to the nearest onehundredth cent, shall be calculated by 

computing a weighted average of the 2 

most recent U.S. average NASS AA 

Butter survey prices announced before 

the 24th day of the month, subtracting 

12.02 cents from this average, and 

multiplying the result by 1.20. 

Dated: December 26, 2006. 

Lloyd C. Day, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. 06–9943 Filed 12–27–06; 9:53 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF THE TREASURY 

Office of the Comptroller of the 

Currency 

12 CFR Part 25 

[Docket No. 06–18] 

RIN 1557–AD00 

FEDERAL RESERVE SYSTEM 

12 CFR Part 228 

[Regulation BB; Docket No. R–1273] 

FEDERAL DEPOSIT INSURANCE 

CORPORATION 

12 CFR Part 345 

RIN 3064–AD11 

Community Reinvestment Act 

Regulations 

AGENCIES: Office of the Comptroller of 

the Currency, Treasury (OCC); Board of 

Governors of the Federal Reserve 

System (Board); Federal Deposit 

Insurance Corporation (FDIC). 

ACTION: Joint final rule; technical 

correction. 

SUMMARY: The OCC, the Board, and the 

FDIC (collectively, the ‘‘agencies’’) are 

publishing this joint final rule to 

reinsert a provision that was 

inadvertently deleted when the agencies 

revised their Community Reinvestment 

Act (CRA) regulations in August 2005. 

This change is technical only and does 

not make any substantive revisions. The 

agencies are also amending their CRA 

regulations to increase the asset-size 

threshold to be used to define ‘‘small 

bank’’ and ‘‘intermediate small bank.’’

The regulation is amended to state the 

increase in the threshold amount based 

on the annual percentage change in the 

Consumer Price Index. 

DATES: Effective January 1, 2007. 

FOR FURTHER INFORMATION CONTACT: 

OCC: Margaret Hesse, Special 

Counsel, Community and Consumer 

Law Division, (202) 874–5750; or Karen 

Tucker, National Bank Examiner, 

Compliance Division, (202) 874–4428, 

Office of the Comptroller of the 

Currency, 250 E Street, SW., 

Washington, DC 20219. 

Board: Anjanette M. Kichline, Senior 

Supervisory Consumer Financial 

Services Analyst, (202) 785–6054; or 

Elizabeth A. Eurgubian, Attorney, (202) 

452–3667, Division of Consumer and 

Community Affairs, Board of Governors 

of the Federal Reserve System, 20th 

Street and Constitution Avenue, NW., 

Washington, DC 20551. 

FDIC: Faye Murphy, Fair Lending 

Specialist, (202) 898–6613, CRA and 

Fair Lending Policy Section, Division of 

Supervision and Consumer Protection; 

or Susan van den Toorn, Counsel, Legal 

Division, (202) 898–8707, Federal 

Deposit Insurance Corporation, 550 17th 

Street, NW., Washington, DC 20429. 

SUPPLEMENTARY INFORMATION: 

Background 

The agencies jointly are amending 

their regulations at 12 CFR parts 25, 

228, and 345 implementing the CRA (12 

U.S.C. 2901 et seq.) to make a technical 

correction related to regulatory changes 

that became effective on September 1, 

2005 (70 FR 44256) and to publish an 

increase in the asset-size threshold for 

small and intermediate small banks as 

required by the regulations. The 

agencies will publish current and 

historical asset-size thresholds on the 

Web site of the Federal Financial 

Institutions Examination Council at 

http://www.ffiec.gov/cra/. 

Description of the Joint Final Rule 

The technical correction published 

today adds as paragraph (d) to §§ 25.26, 

228.26, and 345.26 a provision stating, 

‘‘The [agency] rates the performance of 

a bank evaluated under this section as 

provided in appendix A of this part.’’

No change in the evaluation or rating of 

small banks will result from reinserting 

the provision as new paragraph (d). The 

agencies find it important to make this 

technical correction in order to provide 

clarification and consistency with other 

similar provisions in parts 25, 228, and 

345. 

The agencies’ CRA regulations, as 

revised on September 1, 2005, provide 

that banks that, as of December 31 of 

either of the prior two calendar years, 

had assets of less than $1 billion are 

‘‘small banks.’’ Small banks with assets 

of at least $250 million as of 

December 31 of both of the prior two 

calendar years and less than $1 billion 

as of December 31 of either of the prior 

two calendar years are ‘‘intermediate 

small banks.’’ 12 CFR 25.12(u)(1), 

228.12(u)(1), and 345.12(u)(1). The 

regulations further provide that the 

agencies will publish annual 

adjustments to these dollar figures based 

on the year-to-year change in the 

average of the Consumer Price Index for 

Urban Wage Earners and Clerical 

Workers (CPIW), not seasonally 

adjusted, for each twelve-month period 

ending in November, with rounding to 

the nearest million. 12 CFR 25.12(u)(2), 

228.12(u)(2), and 345.12(u)(2). 

During the period ending 

November 2006, the CPIW increased by 

3.32 percent. As a result, the agencies 

are revising §§ 25.12(u)(1), 228.12(u)(1), 

and 345.12(u)(1) to make this annual 

adjustment. Beginning January 1, 2007, 

banks that, as of December 31 of either 

of the prior two calendar years, had 

assets of less than $1.033 billion are 

‘‘small banks.’’ Small banks with assets 

of at least $258 million as of 

December 31 of both of the prior two 

calendar years and less than $1.033 

billion as of December 31 of either of the 

prior two calendar years are 

‘‘intermediate small banks.’’

Administrative Procedure Act and 

Effective Date 

Under 5 U.S.C. 553(b)(B) of the 

Administrative Procedure Act (APA), an 

agency may, for good cause, find (and 

incorporate the finding and a brief 

statement of reasons therefor in the 

rules issued) that notice and public 

procedure thereon are impracticable, 

unnecessary, or contrary to the public 

interest. 

With regard to the revision adding 

back the paragraph referring to 

appendix A: Appendix A to the 

agencies’ regulations describes the CRA 

ratings system for each performance test 

under the regulations and provides 

specific information on what 

institutions must demonstrate in order 

to achieve a particular rating. Prior to 

the regulatory changes adopted in 2005, 

each provision in the agencies’

regulations describing a performance 

test included a paragraph stating that 


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