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

15011 

Vol. 72, No. 61 

Friday, March 30, 2007 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Parts 91 and 92 

[Docket Number: AMS–ST–07–0045: ST–05– 

01] 

RIN 0581–AC48 

Changes in Hourly Fee Rates for 

Science and Technology Laboratory 

Services—Fiscal Years 2007–2009 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: The Agricultural Marketing 

Service (AMS) is changing the hourly 

fee rates for Science and Technology 

(S&T) Laboratory Services. The agency 

is raising these rates to reflect, among 

other factors, national and locality pay 

increases for Federal employees and 

inflation, operating costs, 

instrumentation and training, and 

program and agency administrative 

overhead costs. In the past, AMS has 

amended its regulations on an as needed 

basis in order to recover laboratory 

program costs. With this regulation, 

AMS is providing for three annual 

standard hourly fee rate increases for 

fiscal years 2007–2009. This will 

provide the agricultural commodity 

industries and other stakeholders with 

more timely and relevant information 

regarding user fees for voluntary 

laboratory testing services. The agency 

is also removing tables and schedules 

with listings of individual tests and 

services. Three annual hourly fee rate 

adjustments are established by this 

action for appeals, holiday, and 

overtime services to reflect the 

anticipated increase cost of providing 

these laboratory services each fiscal 

year. The regulations also are updated to 

identify current facility addresses. Part 

92 is obsolete and therefore has been 

removed. 

DATES: Effective March 31, 2007. 

FOR FURTHER INFORMATION CONTACT: 

James V. Falk, Docket Manager, USDA, 

AMS, Science and Technology 

Programs, 1400 Independence Avenue, 

SW., Mail Stop 0272, Washington, DC 

20250–0272; telephone (202) 690–4089; 

fax (202) 720–4631, or e-mail: 

James.falk@usda.gov. 

SUPPLEMENTARY INFORMATION:

Background 

Science and Technology (S&T) 

Programs has been performing voluntary 

laboratory services under the 

Agricultural Marketing Act of 1946, as 

amended, for the AMS commodity 

programs (Fruit and Vegetable, Cotton, 

Livestock and Seed, Poultry, Dairy, and 

Tobacco) and applicable customers in 

these industries since its inception on 

August 17, 1988. Before that, voluntary 

laboratory testing was provided for a 

user fee by AMS under the various 

commodity programs. The current 

standard hourly rate of $45.00 and the 

premium hourly rate of $67.50 have 

been in effect since publication in the 

Federal Register on October 27, 2000 

(65 FR 64302). The standard fee rate for 

laboratory services will be $60.00 per 

hour for the remainder of fiscal year 

2007, and will increase to $63.00 per 

hour in fiscal year 2008, and $67.00 per 

hour in fiscal year 2009. The premium 

hourly fee rates will also be adjusted for 

fiscal years 2007 through 2009. An 

increase in the premium hourly rates 

over the three fiscal years for laboratory 

services performed on holidays, appeal 

samples, and overtime basis is also 

needed since Science and Technology 

laboratory personnel may be required to 

work extended hours of service at the 

time and a half pay or the double hourly 

pay to accommodate clients. This is due 

to stakeholder demand for immediate 

test results. Generally, the processing of 

all laboratory samples is continuous 

over a 24/7 timeframe due to the recent 

introduction of automated equipment. 

The AMS laboratory testing programs 

are voluntary, user fee services, 

conducted under the authority of the 

Agricultural Marketing Act of 1946 

(AMA), as amended (7 U.S.C. 1621, et 

seq.). The AMA authorizes the Secretary 

of Agriculture to provide Federal 

analytical testing services that facilitate 

marketing and trade. In addition, 

consumers may be able to determine the 

quality and wholesomeness 

characteristics of a commodity or 

product through laboratory testing. This 

allows agricultural products to be 

assigned official AMS grade 

designations or to meet specifications. 

The AMA also requires that reasonable 

fees be collected from the users of the 

services to cover as nearly as possible 

the costs of maintaining the programs. 

With this rulemaking, AMS will 

amend its regulations to provide for 

annual hourly fee rate increases for 

laboratory services over three years (FYs 

2007 through 2009) in one action. AMS 

will continue to perform a yearly cost 

analysis to determine whether the 

voluntary hourly fee rates established 

for its user-fee-supported laboratory 

service programs are adequate to cover 

expenses. The most recent review 

determined that the existing fee 

schedules and tables of individual tests 

or services, which have been in place 

since October 27, 2000, will not 

generate sufficient revenues to recover 

operating costs. 

A more flexible user fee system, using 

set hourly rates for multiple fiscal years, 

is established by this rulemaking to 

ensure that AMS properly recovers its 

full costs for providing laboratory 

services, and that all stakeholders are 

charged reasonable fees. By enacting a 

three year fee increase instead of a 

single year fee increase, AMS will help 

ensure that the fee increases are 

effective at the beginning of each fiscal 

year (October 1). 

In addition, the existing fee schedules 

and tables in 7 CFR, part 91, § 91.37 will 

be removed. The analytical tests listed 

in the tables are not specific to 

individual commodity testing 

requirements or stakeholder needs. The 

current tables do not represent the 

actual operational costs to perform 

single tests and newer methodologies. 

Laboratory services are provided for five 

types of analytical testing: 

Microbiological, physical, residue 

chemistry, proximate analysis for 

composition, and biomolecular testing. 

AMS must recover the costs of 

providing these services. The new 

hourly fee rates will recover these costs, 

and none of the fees collected for testing 

services referenced in this final rule are 

used for a biotechnology verification 

program specified in Federal Register 

Notice (67 FR 50853), August 6, 2002. 


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15012 Federal Register / Vol. 72, No. 61 / Friday, March 30, 2007 / Rules and Regulations 

AMS calculated its actual costs for 

fiscal years 2001 through 2006 and its 

projected increases in salaries and 

inflation in fiscal years 2007 through 

2009. The increases in salaries for fiscal 

year 2006 as the base year and the 

succeeding out years are from the Office 

of Management and Budget’s (OMB) 

multi-year ‘‘Economic Assumptions’’

tables. The Federal pay raise for 

calendar years 2002, 2003, and 2004 

were 4.6 percent, 4.1 percent and 4.1 

percent, respectively. This information 

comes from Table 11–1, ‘‘Economic 

Assumptions’’, of the Office of 

Management and Budget’s Fiscal Year 

2005 Budget which is available at 

http://www.whitehouse.gov/omb/ 

budget/fy2005/econ.html. The average 

fiscal year pay raise for Federal 

employees in calendar years 2005 and 

2006 was 3.5 percent effective January 

2005 and 3.1 percent effective January 

2006. The average combined national 

and locality pay raise is estimated to be 

2.2 percent for fiscal years 2007, 2008, 

and 2009. Inflation for fiscal year 2006 

is 2.1 percent. Inflation for fiscal year 

2007 is estimated to be 2.2 percent. 

Inflation for fiscal year 2008 is 

estimated to be 2.1 percent. Inflation for 

fiscal year 2009 is estimated to be 2.1 

percent. These estimates for inflation 

percent can be obtained from Table 12–

1, ‘‘Economic Assumptions’’, of the 

OMB’s Fiscal Year 2007 Budget which 

is available at 

http://www.whitehouse.gov/omb/ 

budget/fy2007/econ.html. 

The Agency will initiate another 

rulemaking to adjust any fee 

established, only if estimated increases 

for pay and inflation do not adequately 

cover the Agency’s costs of providing 

the services. The cost of providing 

laboratory services includes both direct 

and overhead costs. Direct costs include 

the cost of salaries, employee benefits, 

operation cost and infrastructure cost. 

The Agency is able to estimate the 

employee benefits attributable to 

overtime work and has included these 

in the fee calculations. 

TABLE 1.—CURRENT AND NEW HOURLY FEE RATES (PER HOUR) BY TYPE OF SERVICE

Service Current rate FY 2007 rate 1 FY 2008 rate 2 FY 2009 rate 3

Laboratory ........................................................................................................ $ 45.00 $ 60.00 $ 63.00 $ 67.00 

Appeal .............................................................................................................. 67.50 71.00 74.00 78.00 

Overtime .......................................................................................................... 67.50 71.00 74.00 78.00 

Legal Holiday ................................................................................................... 67.50 82.00 85.00 89.00 

123 Hourly values for FY 2007–FY 2009 are rounded off to nearest whole dollar. 

With this action, the AMS will amend 

its regulations to provide for three 

annual fee increases in one action. Table 

1 shows the summary of the current 

rates and the new hourly fee rates for 

fiscal years 2007 through 2009 for the 

four different types of services (regular 

laboratory, appeal, overtime, and legal 

holiday work) that Science and 

Technology Programs employees 

perform. 

TABLE 2.—CALCULATIONS FOR THE STANDARD HOURLY RATE FOR LABORATORY PROGRAM SERVICES FOR FY 2006 

Laboratory services Apportioned 

fee rate 

Base Time: 

Actual FY 2005 Salaries 1 @ $2,787,474 .................................................................................................................................... $20.00 

FY 2006 Pay Adjustment 2 = [Actual FY 2005 Salaries ($20.00)] × 0.031 + $0.86 (weighted portion @ $119,500 increase 

for the FY 2006 period changes with payroll for within-grade pay step increases for General Schedule salaries, promotion 

pay costs and new employee position pay costs) .................................................................................................................... 1.48 

Benefits 3 ....................................................................................................................................................................................... 6.90 

Operational Costs 4 ....................................................................................................................................................................... 11.60 

Infrastructure Cost 5 ...................................................................................................................................................................... 8.78 

Program Overhead 6 ..................................................................................................................................................................... 3.44 

Agency Overhead 7 ....................................................................................................................................................................... 3.28 

FY 2006 Inflation (2.1%) = [Costs excluding infrastructure and payroll] × .021 ................................................................... 0.53 

Total Rate Per Hour¥Base Time ......................................................................................................................................... 56.01 

1Actual cost of FY 2005 salaries ($2,787,474) ÷ (2,080 program hours times 67 program employees) = $20.00 unit cost. 2Actual cost of FY 2006 pay adjustment ($205,911) ÷ (2,080 program hours times 67 program employees) = $1.48 unit cost. 3Actual cost of benefits ($961,668) ÷ (2,080 program hours times 67 program employees) = $6.90 unit cost. 4Actual cost of operational costs ($1,616,645) ÷ (2,080 program hours times 67 program employees) = $11.60 unit cost. 5Actual cost of infrastructure ($1,223,570) ÷ (2,080 program hours times 67 program employees) = $8.78 unit cost. 6Actual cost of Program overhead ($479,000) ÷ (2,080 program hours times 67 program employees) = $3.44 unit cost. 7Actual cost of Agency overhead ($457,000) ÷ (2,080 program hours times 67 program employees) = $3.28 unit cost. 

TABLE 3.—CALCULATIONS FOR THE STANDARD HOURLY RATE FOR LABORATORY PROGRAM SERVICES FOR FY 2007 

Laboratory services Apportioned 

fee rate 

Base Time: 

FY 2006 Salaries = Actual FY 2005 Salaries ($20.00) + FY 2006 Pay Adjustment ($1.48) ...................................................... $21.48 

FY 2007 Pay Adjustment = FY 2006 Salaries × 0.022 ............................................................................................................... 0.47 

Benefits ......................................................................................................................................................................................... 6.90 

Operational Costs ......................................................................................................................................................................... 11.60 

Infrastructure Cost ........................................................................................................................................................................ 11.75 

Program Overhead ....................................................................................................................................................................... 3.44 


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TABLE 3.—CALCULATIONS FOR THE STANDARD HOURLY RATE FOR LABORATORY PROGRAM SERVICES FOR FY 2007—

Continued 

Laboratory services Apportioned 

fee rate 

Agency Overhead ......................................................................................................................................................................... 3.28 

FY 2006 Inflation (2.1%) = [Costs excluding infrastructure and payroll] × .021 .......................................................................... 0.53 

FY 2007 Inflation (2.2%) = [Costs excluding infrastructure and payroll] × .022 .......................................................................... 0.57 

Total Rate Per Hour¥Base Time ......................................................................................................................................... 60.02 

TABLE 4.— CALCULATIONS FOR THE STANDARD HOURLY RATE FOR LABORATORY PROGRAM SERVICES FOR FY 2008 

Laboratory services Apportioned 

fee rate 

Base Time: 

FY 2007 Salaries = FY 2006 Salaries ($21.48) + FY 2007 Pay Adjustment ($0.47) ................................................................. $21.95 

FY 2008 Pay Adjustment = FY 2007 Salaries × 0.022 ............................................................................................................... 0.48 

Benefits ......................................................................................................................................................................................... 6.90 

Operational Costs ......................................................................................................................................................................... 11.60 

Infrastructure Cost ........................................................................................................................................................................ 13.47 

Program Overhead ....................................................................................................................................................................... 3.44 

Agency Overhead ......................................................................................................................................................................... 3.28 

FY 2006 Inflation (2.1%) = [Costs excluding infrastructure and payroll] × .021 .......................................................................... 0.53 

FY 2007 Inflation (2.2%) = [Costs excluding infrastructure and payroll] × .022 .......................................................................... 0.57 

FY 2008 Inflation (2.1%) = [Costs excluding infrastructure and payroll] × .021 .......................................................................... 0.55 

Total Rate Per Hour¥Base Time ......................................................................................................................................... 62.77 

TABLE 5.—CALCULATIONS FOR THE STANDARD HOURLY RATE FOR LABORATORY PROGRAM SERVICES FOR FY 2009 

Laboratory services Apportioned 

fee rate 

Base Time: 

FY 2008 Salaries = FY 2007 Salaries ($21.95) + FY 2008 Pay Adjustment ($0.48) ................................................................. $ 22.43 

FY 2009 Pay Adjustment = FY 2008 Salaries x 0.022 ................................................................................................................ 0.49 

Benefits ......................................................................................................................................................................................... 6.90 

Operational Costs ......................................................................................................................................................................... 11.60 

Infrastructure Cost ........................................................................................................................................................................ 16.15 

Program Overhead ....................................................................................................................................................................... 3.44 

Agency Overhead ......................................................................................................................................................................... 3.28 

FY 2006 Inflation (2.1%) = [Costs excluding infrastructure and payroll] × .021 .......................................................................... 0.53 

FY 2007 Inflation (2.2%) = [Costs excluding infrastructure and payroll] × .022 .......................................................................... 0.57 

FY 2008 Inflation (2.1%) = [Costs excluding infrastructure and payroll] × .021 .......................................................................... 0.55 

FY 2009 Inflation (2.1%) = [Costs excluding infrastructure and payroll] × .021 .......................................................................... 0.56 

Total Rate Per Hour¥Base Time ......................................................................................................................................... 66.50 

In order to project the hourly fee rates 

for the laboratory program services for 

fiscal years 2007 through 2009, the 

current fiscal year 2006 is used as a 

base. The total base time hourly fee rate 

calculation (Table 2) for fiscal year 2006 

begins with the actual salaries for fiscal 

year 2005 ($2,787,474) and adds the 

fiscal year 2006 pay raises (3.1 percent) 

and add other fiscal year 2006 pay 

adjustments ($119,500) for within-grade 

pay step increases for General Schedule 

(GS) salaries, promotion pay costs, and 

new employee position pay costs. Table 

2 contains footnotes 1–7 that provide 

the common mathematical formula used 

to calculate the apportioned rate for 

each fee charge category for fiscal year 

2006. The formula uses the actual cost 

or projected cost in dollars for the 

applicable fiscal year for each 

individual fee charge category divided 

by the available program hours and 

further divided by the number of 

laboratory service program employees. 

The formula derives the apportioned fee 

rate for each fee charge category 

(salaries with pay adjustment, benefits, 

operational costs, infrastructure cost, 

program administrative overhead and 

agency overhead). The same formula 

that is used in Table 2 and that is 

indicated in its footnotes is also applied 

in the other tables to derive each 

category unit rate with the different 

actual costs or variable projected costs 

to be inserted in the formula equation 

for the applicable fiscal year. 

Table 3 through Table 5 show the 

calculation of the total standard hourly 

fee rates to be rounded off for fiscal 

years 2007 through 2009. 


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TABLE 6.—CALCULATIONS FOR THE APPEAL AND OVERTIME HOURLY RATES FOR LABORATORY PROGRAM SERVICES FOR

FY 2006 

Laboratory services Apportioned 

fee rate 

Appeal and Overtime Rates: Actual Salaries @ 1.5 (time and a half) 

FY 2005 Salaries @ 1.5 = [Actual 2005 Salaries ($20.00)] × 1.5 ............................................................................................... $ 30.00 

FY 2006 Pay Adjustment = [Actual FY 2005 Salaries ($20.00) × 0.031 + $0.86 (weighted portion @ $119,500 increase for 

the FY 2006 period changes with payroll for within-grade pay step increases for General Schedule salaries, promotion 

pay costs, and new employee position pay costs)] × 1.5 ........................................................................................................ 2.22 

Benefits ......................................................................................................................................................................................... 6.90 

Operational Costs ......................................................................................................................................................................... 11.60 

Infrastructure Cost ........................................................................................................................................................................ 8.78 

Program Overhead ....................................................................................................................................................................... 3.44 

Agency Overhead ......................................................................................................................................................................... 3.28 

FY 2006 Inflation (2.1%) = [Costs excluding infrastructure and payroll] × .021 .......................................................................... 0.53 

Total Rate Per Hour¥Appeal and Overtime ........................................................................................................................ 66.75 

TABLE 7.—CALCULATIONS FOR THE APPEAL AND OVERTIME HOURLY RATES FOR LABORATORY PROGRAM SERVICES

FOR FY 2007 

Laboratory services Apportioned 

fee rate 

Appeal and Overtime Rates: Actual Salaries @ 1.5 (time and a half) 

FY 2006 Salaries @ 1.5 = [Actual 2005 Salaries ($20.00) + 2006 Pay Adjustment ($1.48)] x 1.5 ........................................... $32.22 

FY 2007 Pay Adjustment = FY 2006 Salaries @ 1.5 x 0.022 ..................................................................................................... 0.71 

Benefits ......................................................................................................................................................................................... 6.90 

Operational Costs ......................................................................................................................................................................... 11.60 

Infrastructure Cost ........................................................................................................................................................................ 11.75 

Program Overhead ....................................................................................................................................................................... 3.44 

Agency Overhead ......................................................................................................................................................................... 3.28 

FY 2006 Inflation (2.1%) = [Costs excluding infrastructure and payroll] x .021 .......................................................................... 0.53 

FY 2007 Inflation (2.2%) = [Costs excluding infrastructure and payroll] x .022 .......................................................................... 0.57 

Total Rate Per Hour¥Appeal and Overtime ........................................................................................................................ 71.00 

TABLE 8.—CALCULATIONS FOR THE APPEAL AND OVERTIME HOURLY RATES FOR LABORATORY PROGRAM SERVICES FOR

FY 2008 

Laboratory services Apportioned 

fee rate 

Appeal and Overtime Rates: Actual Salaries @ 1.5 (time and a half) 

FY 2007 Salaries @ 1.5 = [FY 2006 Salaries ($21.48) + FY 2007 Pay Adjustment ($0.47)] x 1.5 ........................................... $32.93 

FY 2008 Pay Adjustment = FY 2007 Salaries @ 1.5 x 0.022 ..................................................................................................... 0.72 

Benefits ......................................................................................................................................................................................... 6.90 

Operational Costs ......................................................................................................................................................................... 11.60 

Infrastructure Cost ........................................................................................................................................................................ 13.47 

Program Overhead ....................................................................................................................................................................... 3.44 

Agency Overhead ......................................................................................................................................................................... 3.28 

FY 2006 Inflation (2.1%) = [Costs excluding infrastructure and payroll] x .021 .......................................................................... 0.53 

FY 2007 Inflation (2.2%) = [Costs excluding infrastructure and payroll] x .022 .......................................................................... 0.57 

FY 2008 Inflation (2.1%) = [Costs excluding infrastructure and payroll] x .021 .......................................................................... 0.55 

Total Rate Per Hour¥Appeal and Overtime ........................................................................................................................ 73.99 

TABLE 9.—CALCULATIONS FOR THE APPEAL AND OVERTIME HOURLY RATES FOR LABORATORY PROGRAM SERVICES FOR

FY 2009 

Laboratory services Apportioned 

fee rate 

Appeal and Overtime Rates: Actual Salaries @ 1.5 (time and a half) 

FY 2008 Salaries @ 1.5 = [FY 2007 Salaries ($21.95) + FY 2008 Pay Adjustment ($0.48)] x 1.5 ........................................... $33.65 

FY 2009 Pay Adjustment = FY 2008 Salaries @ 1.5 x 0.022 ..................................................................................................... 0.74 

Benefits ......................................................................................................................................................................................... 6.90 

Operational Costs ......................................................................................................................................................................... 11.60 

Infrastructure Cost ........................................................................................................................................................................ 16.15 

Program Overhead ....................................................................................................................................................................... 3.44 

Agency Overhead ......................................................................................................................................................................... 3.28 


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TABLE 9.—CALCULATIONS FOR THE APPEAL AND OVERTIME HOURLY RATES FOR LABORATORY PROGRAM SERVICES FOR

FY 2009—Continued 

Laboratory services Apportioned 

fee rate 

FY 2006 Inflation (2.1%) = [Costs excluding infrastructure and payroll] x .021 .......................................................................... 0.53 

FY 2007 Inflation (2.2%) = [Costs excluding infrastructure and payroll] x .022 .......................................................................... 0.57 

FY 2008 Inflation (2.1%) = [Costs excluding infrastructure and payroll] x .021 .......................................................................... 0.55 

FY 2009 Inflation (2.1%) = [Costs excluding infrastructure and payroll] x .021 .......................................................................... 0.56 

Total Rate Per Hour¥Appeal and Overtime ........................................................................................................................ 77.97 

Table 6 through Table 9 show the 

calculation of the total appeal and total 

overtime hourly fee rates to be rounded 

off for fiscal years 2006 through 2009. 

These tables incorporate the 

differentials in costs associated with the 

necessity of laboratory personnel to 

work extended hours of service at the 

time and a half pay doing either 

overtime or appeal sample testing. 

TABLE 10.—CALCULATIONS FOR THE FEDERAL HOLIDAY HOURLY RATE FOR LABORATORY PROGRAM SERVICES FOR FY 

2006 

Laboratory services Apportioned 

fee rate 

Holiday Rate: Actual Salaries @ 2.0 (double time) 

FY 2005 Salaries @ 2.0 [Actual 2005 Salaries ($20.00)] x 2.0 .................................................................................................. $40.00 

FY 2006 Pay Adjustment = [Actual FY 2005 Salaries ($20.00) x 0.031 +$0.86 (weighted portion @ $119,500 increase for 

the FY 2006 period changes with payroll for within-grade pay step increases for General Schedule salaries, promotion 

pay costs, and new employee position pay costs)] x 2.0 ........................................................................................................ 2.96 

Benefits ......................................................................................................................................................................................... 6.90 

Operational Costs ......................................................................................................................................................................... 11.60 

Infrastructure Cost ........................................................................................................................................................................ 8.78 

Program Overhead ....................................................................................................................................................................... 3.44 

Agency Overhead ......................................................................................................................................................................... 3.28 

FY 2006 Inflation (2.1%) = [Costs excluding infrastructure and payroll] x .021 .......................................................................... 0.53 

Total Rate Per Hour¥Holidays ............................................................................................................................................. 77.49 

TABLE 11.—CALCULATIONS FOR THE FEDERAL HOLIDAY HOURLY RATE FOR LABORATORY PROGRAM SERVICES FOR FY 

2007 

Laboratory services Apportioned 

fee rate 

Holiday Rate: Actual Salaries @ 2.0 (double time) 

FY 2006 Salaries @ 2.0 = [Actual 2005 Salaries ($20.00) + 2006 Pay Adjustment ($1.48)] x 2.0 ........................................... $42.96 

FY 2007 Pay Adjustment = FY 2006 Salaries @ 2.0 x 0.022 ..................................................................................................... 0.95 

Benefits ......................................................................................................................................................................................... 6.90 

Operational Costs ......................................................................................................................................................................... 11.60 

Infrastructure Cost ........................................................................................................................................................................ 11.75 

Program Overhead ....................................................................................................................................................................... 3.44 

Agency Overhead ......................................................................................................................................................................... 3.28 

FY 2006 Inflation (2.1%) = [Costs excluding infrastructure and payroll] x .021 .......................................................................... 0.53 

FY 2007 Inflation (2.2%) = [Costs excluding infrastructure and payroll] x .022 .......................................................................... 0.57 

Total Rate Per Hour¥Holidays ............................................................................................................................................. 81.98 

TABLE 12.—CALCULATIONS FOR THE FEDERAL HOLIDAY HOURLY RATE FOR LABORATORY PROGRAM SERVICES FOR FY 

2008 

Laboratory services Apportioned 

fee rate 

Holiday Rate: Actual Salaries @ 2.0 (double time) 

FY 2007 Salaries @ 2.0 = [FY 2006 Salaries ($21.48) + FY 2007 Pay Adjustment ($0.47)] x 2.0 ........................................... $43.90 

FY 2008 Pay Adjustment = FY 2007 Salaries @ 2.0 x 0.022 ..................................................................................................... 0.97 

Benefits ......................................................................................................................................................................................... 6.90 

Operational Costs ......................................................................................................................................................................... 11.60 

Infrastructure Cost ........................................................................................................................................................................ 13.47 

Program Overhead ....................................................................................................................................................................... 3.44 

Agency Overhead ......................................................................................................................................................................... 3.28 

FY 2006 Inflation (2.1%) = [Costs excluding infrastructure and payroll] x .021 .......................................................................... 0.53 


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TABLE 12.—CALCULATIONS FOR THE FEDERAL HOLIDAY HOURLY RATE FOR LABORATORY PROGRAM SERVICES FOR FY 

2008—Continued 

Laboratory services Apportioned 

fee rate 

FY 2007 Inflation (2.2%) = [Costs excluding infrastructure and payroll] x .022 .......................................................................... 0.57 

FY 2008 Inflation (2.1%) = [Costs excluding infrastructure and payroll] x .021 .......................................................................... 0.55 

Total Rate Per Hour¥Holidays ............................................................................................................................................. 85.21 

TABLE 13.— CALCULATIONS FOR THE FEDERAL HOLIDAY HOURLY RATE FOR LABORATORY PROGRAM SERVICES FOR FY 

2009 

Laboratory services Apportioned 

fee rate 

Holiday Rate: Actual Salaries @ 2.0 (double time) 

FY 2008 Salaries @ 2.0 = [FY 2007 Salaries ($21.95) + FY 2008 Pay Adjustment ($0.48)] x 2.0 ........................................... $44.86 

FY 2009 Pay Adjustment = FY 2008 Salaries @ 2.0 x 0.022 ..................................................................................................... 0.99 

Benefits ......................................................................................................................................................................................... 6.90 

Operational Costs ......................................................................................................................................................................... 11.60 

Infrastructure Cost ........................................................................................................................................................................ 16.15 

Program Overhead ....................................................................................................................................................................... 3.44 

Agency Overhead ......................................................................................................................................................................... 3.28 

FY 2006 Inflation (2.1%) = [Costs excluding infrastructure and payroll] x .021 .......................................................................... 0.53 

FY 2007 Inflation (2.2%) = [Costs excluding infrastructure and payroll] x .022 .......................................................................... 0.57 

FY 2008 Inflation (2.1%) = [Costs excluding infrastructure and payroll] x .021 .......................................................................... 0.55 

FY 2009 Inflation (2.1%) = [Costs excluding infrastructure and payroll] x .021 .......................................................................... 0.56 

Total Rate Per Hour¥Holidays ............................................................................................................................................. 89.43 

Table 10 through Table 13 show the 

calculation of the total legal holiday 

hourly fee rates to be rounded off for 

fiscal years 2006 through 2009. These 

tables incorporate the differentials in 

costs associated with the necessity of 

laboratory personnel to work extended 

hours of service at the double hourly 

pay rate doing sample testing on a 

Federal holiday or a designated day for 

the Federal holiday. 

The Agency must recover the actual 

cost of services for multiple fiscal years 

covered by this rule. These fee increases 

are essential for the continued sound 

financial management of the Agency’s 

budget. In order to enhance the 

transparency of the hourly fee rates in 

the aforementioned Tables 3 through 13 

for fiscal year 2007, fiscal year 2008 and 

fiscal year 2009, a description is 

provided of each fee charge category. 

Federal salaries with national and 

locality pay adjustments and choices in 

benefits are made available on an 

annual basis by the Office of Personnel 

Management (OPM). Operational costs 

include expenses for rents, 

communications, utilities, medical 

examinations, safety equipment, sample 

preparation equipment, training, trash 

and hazardous waste disposal, travel 

and transportation costs. 

Communication expenditures include 

costs for photocopying, printing, emailing, Internet services, telephone, 

and faxing equipment. There have been 

large capital improvement expenditures 

in the laboratories in recent years. These 

expenditures include costs for the Food 

Emergency Response Network (FERN) 

and the capital improvements for the 

Environmental Management Systems 

(EMS) in accordance with the applicable 

mandates for Federal laboratories of 

Executive Order 13148 of April 21, 

2000, Greening the Government 

Through Leadership in Environmental 

Management (65 FR 24593). These 

capital improvement costs are included 

in the normal operations of the Science 

and Technology field service 

laboratories. In addition, operational 

costs include expenses for office and 

laboratory supplies, chemicals, reagents, 

security and guard services, waste 

removal, robots, cleaning and internal 

building maintenance, billing and 

collection services, and a Laboratory 

Information Management System 

(LIMS). Infrastructure costs are mainly 

laboratory instruments and capital 

equipment with service and 

maintenance contracts and replacement 

spare parts. Infrastructure expenses 

include consumable supply costs 

associated directly with the proper 

operation of analytical instruments and 

laboratory equipment. Stakeholders 

demand that AMS provide cost effective 

and timely product testing requiring 

modern and sometimes automated 

instrumentation. These instruments are 

expensive and undergo equipment 

capitalization for determining costs. 

Equipment capitalization is the 

determined cost per year to replace the 

equipment after its useful service life 

has been established. Infrastructure 

costs include database acquisitions and 

maintenance for e-business. 

Infrastructure costs include large 

computer hardware and software 

expenses. Agency and Program 

overhead is the pro-rated share, 

attributable to a particular service, of the 

agency’s management and support costs. 

Management and administrative support 

costs include the costs of providing 

budget and accounting services, 

regulatory services, investigative and 

enforcement services, debt-management 

services, personnel services, public 

information services, legal services, 

statistical services, and other general 

program and agency management 

services of support activities above the 

local laboratory level. Overhead 

expenditures are allocated across the 

Agency for each direct hour of 

laboratory service. 

AMS no longer uses the Billings and 

Collections System (BLCO) for billings 

and collections through the National 

Finance Center (NFC) in New Orleans, 

LA. The Agency now uses the ‘‘accounts 

receivable’’ functions in Foundation 

Financial Information System (FFIS) as 

the document feeder system for 

customer billings and the collections 

now come through our lockbox. 


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Federal Register / Vol. 72, No. 61 / Friday, March 30, 2007 / Rules and Regulations 15017 

Accordingly, § 91.42 will be updated to 

reflect these changes. The regulations 

also are updated to identify current 

facility addresses. 

This rule will also remove and reserve 

7 CFR Part 92. Part 92 is obsolete 

because it relates to the mandatory 

testing of imported tobacco for 

prohibited pesticide residues and the 

statutory requirement for such testing 

has been removed by the Fair and 

Equitable Tobacco Reform Act of 2004 

(7 U.S.C. 518). The tests had been 

conducted by Science and Technology 

(S&T) Programs for the AMS Tobacco 

Program, which sampled imported 

tobacco and administered the program 

for imported tobacco. 

Proposed Rule and Comments 

AMS published a proposed rule on 

September 22, 2006 (71 FR 55369), 

stating that it was proposing changing 

fees for laboratory services for FYs 2007 

through 2009. AMS provided for a 30 

day comment period, ending October 

23, 2006. AMS received no comments. 

Executive Order 12866, Regulatory 

Flexibility Act, and Paperwork 

Reduction Act 

This rule has been reviewed under 

Executive Order 12866. Although not 

economically significant, this rule has 

been determined to be significant for the 

purposes of Executive Order 12866 and, 

therefore, has been reviewed by the 

Office of Management and Budget 

(OMB). 

An economic analysis follows to 

review the impacts on laboratory 

customers of the new revisions in AMS 

voluntary user fees for laboratory 

services. The economic analysis 

provides a cost-benefit analysis as 

required by Executive Order 12866 and 

an analysis of the potential economic 

effects on small entities as required by 

the Regulatory Flexibility Act (RFA) (5 

U.S.C. 601 et seq.). In accordance with 

5 U.S.C. 604, AMS has prepared a final 

Regulatory Flexibility Analysis for this 

rule. 

Regulations must be designed in the 

most cost-effective manner possible to 

obtain the objective of a sustainable cost 

recovery program while imposing the 

least burden on society. AMS has 

prepared a Regulatory Impact 

Assessment (RIA) consisting of a 

statement of the need for the rulemaking 

action, an examination of alternative 

approaches, and an economic analysis 

of the benefits and costs. 

Need for the Rule 

The AMS laboratory testing programs 

are voluntary, user fee services 

conducted under the authority of the 

Agricultural Marketing Act of 1946 

(AMA), as amended (7 U.S.C. 1621, et 

seq.). The AMA authorizes the Secretary 

of Agriculture to provide Federal 

analytical testing services that facilitate 

marketing and trade. The AMA also 

requires that reasonable fees be 

collected from the users of the services 

to cover as nearly as practicable the 

costs of maintaining the programs. 

Science and Technology (S&T) 

Programs of AMS regularly reviews its 

user-fee-financed laboratory service 

programs to determine if the fee levels 

are adequate. The most recent review 

determined that the existing fee 

schedule, effective October 27, 2000 (65 

FR 64302) will not generate sufficient 

revenues to recover operating costs. For 

fiscal year 2005 the Science and 

Technology program reported a 

$702,000 deficit at the current fee levels. 

The Science and Technology program 

costs and revenues for fiscal year 2005 

were $6,393,000 and $5,691,000, 

respectively. Program costs for fiscal 

year 2006 were projected at $6,602,000 

and revenues were projected at 

$5,834,000 for a deficit of $768,000. 

With this action, the Agency expects to 

collect an estimated $6,521,000, 

$7,186,000, and $7,553,000 in fiscal 

years 2007 through 2009 respectively, to 

cover the cost of routine laboratory 

services, appeal requests, overtime, and 

holiday services for Science and 

Technology customers and other 

program stakeholders. 

Alternatives 

Alternatives to the rate increase were 

considered by the Agency. One 

alternative to this rule would be to make 

no changes to the current user fees. As 

a result, AMS would not recover the full 

cost of program activities and services 

would have to be reduced or terminated. 

Were this to happen, the users of AMS 

laboratory services would be unable to 

meet certain AMS program 

requirements, would find it more 

difficult to meet foreign government or 

importer testing requirements, and 

would lose the opportunity to support 

their marketing efforts with what they 

believe to be preferred government 

laboratory test results. Consequently, 

AMS does not consider this alternative 

to be reasonable. 

Another alternative considered would 

be to calculate the fee increases needed 

over the next three year period and then 

spread this overall increase evenly in 

annual increments. Because the 

increases are necessary to cover ongoing costs, e.g., rent, salaries and 

benefits, and equipment replacement, 

and financial stability needs to be 

maintained for this program, adequate 

funds must be generated immediately, 

rather than spread over a three year 

period. Thus, AMS does not consider 

this alternative to be reasonable. 

To ensure full costs are being covered 

as they are incurred, the preferred 

alternative is to match fee increases 

with expected costs on an annual basis 

over the next three years. This 

alternative will assure costs are 

appropriately covered and that 

laboratory testing services remain 

available as program customers request 

them. With this action, the Agency 

expects to collect an estimated 

$6,521,000, $7,186,000, and $7,553,000 

in fiscal years 2007 through 2009, 

respectively, to cover the cost of routine 

laboratory services, appeal requests, 

overtime, and holiday services. 

Summary of Impacts 

Under this rule AMS will continue to 

offer laboratory testing services under 

the Agricultural Marketing Act of 1946 

as amended, to facilitate marketing and 

allow products to obtain grade 

designations or meet marketing 

standards. As such, the program 

provides a viable option for a wide 

variety of clients by delivering scientific 

and analytical support services to the 

agricultural community and provides a 

valuable resource for those businesses 

and industries that wish to use a USDA 

shield. 

Further, by having a three year fee 

increase instead of a single year fee 

increase, the Agency will help ensure 

that the fee increases are effective at the 

beginning of each fiscal year on October 

1. An increase over three fiscal years 

will permit customers and other 

program stakeholders an opportunity to 

plan for annual changes in costs of 

laboratory service and to incorporate 

them into their budgetary plans. 

For analytical purposes, projected 

collections are based on calculations 

using an effective date of January 1, 

2007 for the fiscal year 2007 user fees. 

There are essentially three rate increases 

being changed for the basic laboratory 

services—$45 to $60 or 33.3 percent in 

fiscal year 2007, $60 to $63 or 5.0 

percent in fiscal year 2008 and $63 to 

$67 or 6.4 percent in fiscal year 2009. 

The rate increases for overtime and 

appeals are $67.50 to $71 or 5.2 percent, 

$71 to $74 or 4.2 percent, and $74 to 

$78 or 5.4 percent in fiscal years 2007, 

2008, and 2009, respectively. The rate 

increases for holiday service are $67.50 

to $82 or 21.5 percent, $82 to $85 or 3.7 

percent, and $85 to $89 or 4.7 percent 

in fiscal years 2007, 2008, and 2009, 

respectively. This is a voluntary 

program and the costs to each user 

would be proportional to their use of 


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15018 Federal Register / Vol. 72, No. 61 / Friday, March 30, 2007 / Rules and Regulations 

laboratory services each year. The 

increased fees will cover inflation and 

national and locality pay raises and 

replacement of equipment and other 

infrastructure improvements. 

Under the Regulatory Flexibility Act, 

the impact of this rule on small 

businesses must be analyzed. There are 

811 current users of AMS laboratory 

testing services. Such users of services 

include food processors, handlers, 

growers, Federal and State government 

agencies, and exporters. Many of these 

users are small entities under the 

criteria established by the Small 

Business Administration (13 CFR 

121.201). Any decision by stakeholders 

and customers to discontinue the use of 

the laboratory services because of 

increased fees would not hinder food 

processors or other industry members 

from marketing their products. 

For the following cost analysis, 

certain assumptions are used. First, base 

year data is actual fiscal year 2006 

amount billed for voluntary services 

performed for the public. Second, seven 

percent of the total amount billed 

represents overtime costs and five 

percent represents costs related to 

appeals. Third, the calculated amounts 

in fiscal year 2007 are using the base 

year data as if the base year was fiscal 

year 2006. Fourth, each of the 811 

customers had the exact same tests, 

using the same amount of time, and thus 

were billed the exact same amount. This 

customer is the ‘‘average’’ laboratory 

customer. 

Table 14 sets the total levels for the 

dollar ($) amounts billed in the base 

year (Fiscal Year 2006). 

TABLE 14.—BASE YEAR DATA (FISCAL

YEAR 2006) 

Total Billed ........................ $1,536,688 

Basic Laboratory Services 1,352,285 

Overtime Costs (7%) ........ 107,568 

Appeal Costs (5%) ........... 76,834 

Table 15 presents the base year costs 

and estimates costs in fiscal year 2007, 

fiscal year 2008, and fiscal year 2009 for 

the ‘‘average’’ laboratory customer. The 

base year values are derived by dividing 

basic laboratory services, overtime costs, 

and appeal costs by 811. The values for 

fiscal years 2007, 2008, and 2009 are 

derived multiplying each year by the 

appropriate percentage rate. 

TABLE 15.—COSTS ($) FOR THE ‘‘AVERAGE’’ CUSTOMER, BASE YEAR THROUGH FISCAL YEAR 2009 

Base year FY 2007 FY 2008 FY 2009 Total Diff.1

Lab Services ...................................................................................................... 1,667 2,223 2,334 2,483 816 

Overtime ............................................................................................................. 133 140 146 154 21 

Appeals .............................................................................................................. 95 100 104 110 15 

Total ..................................................................................................... 1,895 2,463 2,584 2,747 852 

1 Net difference calculated between costs in dollars ($) between base year and Fiscal Year 2009. 

After the third increase, the customer 

will pay an additional average of $852 

for all laboratory services. This is a 

44.96 percent increase over the base 

year. The percentage increase for the 

basic laboratory services is 49.0 percent, 

overtime is 15.8 percent, and an appeal 

sample is 15.8 percent. 

TABLE 16.—COSTS ($) FOR A ‘‘LARGE BUSINESS’’ CUSTOMER, BASE YEAR THROUGH FISCAL YEAR (FY) 2009 

Base total FY 2007 FY 2008 FY 2009 Total Diff. 1

Lab Services ........................................................................ 704,000 938,432 985,354 1,048,417 344,417 

Overtime ............................................................................... 56,000 58,912 61,386 64,701 8,701 

Appeals ................................................................................ 40,000 42,080 43,847 46,215 6,215 

Total ....................................................................... 800,000 1,039,424 1,090,587 1,159,333 359,333 

1 Net difference calculated between costs in dollars ($) between base year and Fiscal Year 2009. 

Table 16 presents the base year costs 

and estimates costs in fiscal years 2007, 

2008, and 2009 for a ‘‘large business’’

laboratory customer. While the 

numerical values increase significantly, 

the percentages are the same. Even 

though the ‘‘large business’’ customer is 

paying $359,333 more then what was 

paid for the same services in the base 

year, the increase is still approximately 

44.9 percent above what was billed in 

the base year. 

The same is true for a ‘‘small 

business’’ customer. Table 17 presents 

the costs associated with a customer 

billed $29,000. Again the total 

difference between the billing in fiscal 

year 2009 and the base year is 

significantly smaller than the billing of 

an ‘‘average’’ customer, but the 

percentage increase is still near 44.9 

percent. 

TABLE 17.—COSTS ($) FOR A ‘‘SMALL BUSINESS’’ CUSTOMER, BASE YEAR THROUGH FISCAL YEAR (FY) 2009 

Base 

year FY 2007 FY 2008 FY 2009 Total Diff. 1

Lab Services ................................................................................................................ 25,520 34,018 35,719 38,005 12,485 

Overtime ....................................................................................................................... 2,030 2,136 2,226 2,346 316 

Appeals ........................................................................................................................ 1,450 1,525 1,589 1,675 225 

Total ............................................................................................................... 29,000 37,679 39,534 42,026 13,026 

1 Net difference calculated between costs in dollars ($) between base year and FY 2009. 


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Federal Register / Vol. 72, No. 61 / Friday, March 30, 2007 / Rules and Regulations 15019 

Under the Regulatory Flexibility Act, 

the impact of this rule on small 

businesses must be considered. The 

Agency estimates that 25 percent of the 

laboratory fees billed in fiscal year 2006 

was to small businesses. Thus, a total of 

$384,172 was billed to small businesses. 

If the entire increase had been 

implemented, small businesses would 

have been billed $556,665, a 44.9 

percent increase. 

One question is how each of these 

customers including small businesses 

will react to cost increases at these 

amounts. The increases are spread over 

a three year period which will mitigate 

some of the impact. But the focus 

should be on the reaction to the increase 

occurring in fiscal year 2007 which is a 

one third increase over the base year. 

The answer is dependent on the 

customer’s business, and is proportional 

to the number of samples involved. The 

lower the cost per unit of product being 

sampled, the higher the probability the 

customer will continue to use AMS 

laboratory services and pass on some or 

all of the anticipated additional costs, 

the exact amount of which is not 

known. Also, use of AMS laboratory 

services is voluntary and other private 

or public laboratory options are 

available. 

This rule contains no new 

information collection or recordkeeping 

requirements that are subject to the 

Office of Management and Budget 

(OMB) approval under the Paperwork 

Reduction Act of 1995 (44 U.S.C. 3501–

3520). AMS is committed to 

implementation of the Government 

Paperwork Elimination Act which 

provides for the use of information 

resources to improve the efficiency and 

effectiveness of governmental 

operations, including providing the 

public with the option of submitting 

information or transacting business 

electronically to the extent practicable. 

USDA has not identified any relevant 

Federal rules that duplicate, overlap, or 

conflict with this rule. 

Unfunded Mandate Analysis 

Title II of the Unfunded Mandate 

Reform Act of 1995 (UMRA), Public 

Law 104–4, establishes requirements for 

Federal agencies to assess the effects of 

their regulatory actions on State, local, 

and tribal governments and the private 

sector. Under section 202 of UMRA, the 

Department generally must prepare a 

written statement, including a cost 

benefit analysis, for proposed and final 

rules with ‘‘Federal mandates’’ that may 

result in expenditures to State, local, or 

tribal governments, in the aggregate, or 

to the private sector, of $100 million or 

more in any one year. When such a 

statement is needed for a rule, section 

205 of UMRA generally requires that the 

Department identify and consider a 

reasonable number of regulatory 

alternatives and adopt the least costly, 

more cost-effective or least burdensome 

alternative that achieves the objectives 

of the rule. 

This rule contains no Federal 

mandates (under the regulatory 

provisions of Title II of the UMRA) that 

impose costs on State, local, or tribal 

governments or to the private sector of 

$100 million or more in any one year. 

Thus, this rule is not subject to the 

requirements of section 202 and 205 of 

UMRA. 

Civil Justice Reform (Executive Order 

12988) 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. It is not intended to have 

retroactive effect. This rule does not 

preempt any State or local laws, 

regulation, or policies, unless they 

present an irreconcilable conflict with 

this rule. There are no administrative 

procedures which must be exhausted 

prior to any judicial challenge to this 

rule or the application of its provisions. 

Civil Rights Review 

AMS has considered the potential 

civil rights implications of this rule on 

minorities, women, or persons with 

disabilities to ensure that no person or 

group shall be discriminated against on 

the basis of race, color, national origin, 

gender, religion, age, disability, sexual 

orientation, marital or family status, 

political beliefs, parental status, or 

protected genetic information. AMS has 

included at § 91.7 the provision in the 

regulation under part 91 to describe in 

detail the requirements for 

nondiscrimination when reviewing or 

granting any person or entity the 

benefits of Science and Technology 

Programs laboratory service. This 

regulation is consistent with USDA 

regulations which prohibit 

discrimination in its programs and 

activities. 

This rule does not require affected 

entities to relocate or alter their 

operations in ways that could adversely 

affect such persons or groups. Further, 

this rule does not deny any persons or 

groups the benefits of the program or 

subject any persons or groups to 

discrimination. 

AMS has reviewed this rule in 

accordance with the Department 

Regulation 4300–4,‘‘Civil Rights Impact 

Analysis.’’ AMS has determined this 

action ensures the civil rights of all 

Science and Technology Programs 

applicants and customers. They 

represent minorities (24.4%), women 

(51.1%), and persons with disabilities 

(14.5%) in the same percent proportions 

to the entire customer base as their 

compositions are represented in the 

total approximate general population 

(300.2 million) of the United States of 

America available in descriptive tables 

at http://www.census.gov/. In addition, 

each and every customer would receive 

the same user fee for each identical 

service. 

Comments and Effective Date 

A thirty day comment period was 

provided for interested persons to 

comment on the proposed rule 

published in Federal Register (71 FR 

55369) regarding changes in user fees 

for voluntary laboratory testing services. 

No comments were received by the end 

of the comment period on October 23, 

2006. The existing fee schedules have 

been in place since October 2000. AMS 

regularly reviews its user-fee-supported 

programs to determine if the fees are 

adequate to cover expenses. The agency 

is unable to recover the full cost of its 

laboratory testing services. With this 

regulation, AMS is providing for three 

annual hourly fee rate increases for 

fiscal years 2007–2009. Accordingly, for 

these reasons, pursuant to 5 U.S.C. 553, 

it is found and determined that good 

cause exists for not postponing the 

effective date of this rule until 30 days 

after publication in the Federal 

Register. Therefore, this final rule is 

effective one day after the date of 

publication in the Federal Register. 

List of Subjects 

7 CFR Part 91 

Administrative practice and 

procedure, Agricultural commodities, 

Laboratories, Reporting and 

recordkeeping requirements. 

7 CFR Part 92 

Agricultural commodities, 

Laboratories, Pesticides and pests, 

Tobacco. 

■ For the reasons set forth in the 

preamble, the Agricultural Marketing 

Service amends part 91 and under the 

authority of 7 U.S.C. 1622, 1624 

removes part 92 of Title 7, chapter I, 

subchapter E, of the Code of Federal 

Regulations as follows: 

PART 91—SERVICES AND GENERAL 

INFORMATION 

■ 1. The authority citation part 91 

continues to read as follows: 

Authority: 7 U.S.C. 1622, 1624. 

■ 2. Section 91.5 is revised to read as 

follows: 


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15020 Federal Register / Vol. 72, No. 61 / Friday, March 30, 2007 / Rules and Regulations 

§ 91.5 Where services are offered. 

(a) Services are offered to applicants 

at the Science and Technology 

laboratories and facilities as listed 

below. 

(1) Science and Technology Programs 

National Science Laboratory. A variety 

of proximate, chemical, microbiological 

and biomolecular tests and laboratory 

analyses performed on fruits and 

vegetables, poultry, meat and meat 

products, fiber products and processed 

foods are performed at the Science and 

Technology Programs (S&T) laboratory 

located at: USDA, AMS, Science and 

Technology Programs, National Science 

Laboratory (NSL), 801 Summit Crossing 

Place, Suite B, Gastonia, North Carolina 

28054–2193. 

(2) Science and Technology (S&T) 

Programs Science Satellite Laboratories. 

The specialty satellite laboratories 

performing aflatoxin and other testing 

on peanuts, peanut products, dried 

fruits, grains, edible seeds, tree nuts, 

shelled corn products, oilseed products, 

vegetable oils, juices, citrus products, 

and other commodities are located as 

follows: 

(i) USDA, AMS, Science & 

Technology, Citrus Laboratory, 98 Third 

Street, SW., 

Winter Haven, Florida 33880–2905. 

(ii) USDA, AMS, Science & 

Technology, 6567 Chancey Mill Road, 

Blakely, Georgia 39823–2785. 

(iii) USDA, AMS, Science & 

Technology, c/o Golden Peanut 

Company LLC, (Mail: P.O. Box 272), 715 

Martin Luther King Drive, Dawson, 

Georgia 39842–1002. 

(iv) USDA, AMS, Science & 

Technology, 107 South Fourth Street, 

Madill, Oklahoma 73446–3431. 

(v) USDA, AMS, Science & 

Technology, (Mail: P.O. Box 1130), 308 

Culloden Street, Suffolk, VA 23434–

4706. 

(3) Program laboratories. Laboratory 

services are available in all areas 

covered by cooperative agreements 

providing for this laboratory work and 

entered on behalf of the Department 

with cooperating Federal or State 

laboratory agencies pursuant to 

authority contained in Act(s) of 

Congress. Also, services may be 

provided in other areas not covered by 

a cooperative agreement if the 

Administrator determines that it is 

possible to provide such laboratory 

services. 

(4) Other alternative laboratories. 

Laboratory analyses may be conducted 

at alternative Science and Technology 

Programs laboratories and can be 

reached from any commodity market in 

which a laboratory facility is located to 

the extent laboratory personnel are 

available. 

(5) The Plant Variety Protection (PVP) 

Office. The PVP office and plant 

examination facility of the Science and 

Technology programs issues certificates 

of protection to developers of novel 

varieties of plants which reproduce 

sexually. The PVP office is located as 

follows: USDA, AMS, Science & 

Technology Programs, Plant Variety 

Protection Office, National Agricultural 

Library Building, Room 401, 10301 

Baltimore Boulevard, Beltsville, MD 

20705–2351. 

(6) Science and Technology Programs 

headquarters offices. The examination, 

licensure, quality assurance reviews, 

laboratory approval/certification and 

consultation services are provided by 

headquarters staff located in 

Washington, DC. The main headquarters 

office is located as follows: USDA, 

AMS, Science and Technology 

Programs, Office of the Deputy 

Administrator, South Agriculture Bldg., 

Mail Stop 0270, 1400 Independence 

Ave., SW., Washington, DC 20250–0270. 

(7) The Information Technology (IT) 

Group. The IT office of the Science and 

Technology Programs is headed by the 

Associate Deputy Administrator for 

Technology/Chief Information Officer 

and provides information technology 

services and management systems to the 

Agency and other agencies within the 

USDA. The main IT office is located as 

follows: USDA, AMS, Science and 

Technology, Office of the Associate 

Deputy Administrator for Technology, 

1752 South Agriculture Bldg., Mail Stop 

0204, 1400 Independence Ave., SW., 

Washington, DC 20250–0204. 

(8) Statistics Branch Office. The 

Statistics Branch office of Science and 

Technology Programs (S&T) provides 

statistical services to the Agency and 

other agencies within the USDA. In 

addition, the Statistics Branch office 

generates sample plans and performs 

consulting services for research studies 

in joint efforts with or in a leading role 

with other program areas of AMS or of 

the USDA. The Statistics Branch office 

is located as follows: USDA, AMS, S&T 

Statistics Branch, 0603 South 

Agriculture Bldg., Mail Stop 0223, 1400 

Independence Ave., SW., Washington, 

DC 20250–0223. 

(9) Technical Services Branch Office. 

The Technical Services Branch office of 

Science and Technology (S&T) provides 

technical support services to all Agency 

programs and other agencies within the 

USDA. In addition, the Technical 

Services Branch office provides 

certification and approval services of 

private and State government 

laboratories as well as oversees quality 

assurance programs; import and export 

certification of laboratory tested 

commodities. The Technical Services 

Branch mailing address is as follows: 

USDA, AMS, S&T Technical Services 

Branch, South Agriculture Bldg., Mail 

Stop 0272, 1400 Independence Ave., 

SW., Washington, DC 20250–0272. The 

Technical Services Branch office is 

located as follows: USDA, AMS, Science 

and Technology Technical Services 

Branch, Room 306, Cotton Annex Bldg., 

300 12th Street, SW., Washington, DC 

20250. 

(10) Monitoring Programs Office. 

Services afforded by the Pesticide Data 

Program (PDP) and Microbiological Data 

Program (MDP) are provided by USDA, 

AMS, Science and Technology 

Monitoring Programs Office 8609 

Sudley Road, Suite 206, Manassas, VA 

20110–8411. 

(11) Pesticide Records Branch Office. 

Services afforded by the Federal 

Pesticide Record Keeping Program for 

restricted-use pesticides by private 

certified applicators are provided by 

USDA, AMS, Science and Technology, 

Pesticide Records Branch, 8609 Sudley 

Road, Suite 203, Manassas, VA 20110–

8411. 

(b) The addresses of the various 

laboratories and offices appear in the 

pertinent parts of this subchapter. A 

prospective applicant may obtain a 

current listing of addresses and 

telephone numbers of Science and 

Technology Programs laboratories, 

offices, and facilities by addressing an 

inquiry to the Administrative Officer, 

Science and Technology Programs, 

Agricultural Marketing Service, United 

States Department of Agriculture 

(USDA), 1400 Independence Ave., SW., 

Room 0725 South Agriculture Building, 

Mail Stop 0271, Washington, DC 20250–

0271. 

■ 3. Section 91.37 is revised to read as 

follows: 

§ 91.37 Standard hourly fee rate for 

laboratory testing, analysis, and other 

services. 

(a) The standard hourly fee rate in this 

section for the individual laboratory 

analyses cover the costs of Science and 

Technology laboratory services, 

including issuance of certificates and 

personnel and overhead costs other than 

the commodity inspection fees referred 

to in 7 CFR 52.42 through 52.46, 52.48 

through 52.51, 55.510 through 55.530, 

55.560 through 55.570, 58.38 through 

58.43, 58.45 through 58.46, 70.71 

through 70.72, and 70.75 through 70.78. 

The hourly fee rates in this part 91 

apply to all commodity and processed 

commodity products. The new fiscal 

year for Science and Technology 


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Federal Register / Vol. 72, No. 61 / Friday, March 30, 2007 / Rules and Regulations 15021 

Programs commences on October 1 of 

each calendar year. The rate for 

laboratory services is $60.00 per hour in 

fiscal year 2007, $63.00 per hour in 

fiscal year 2008, and $67.00 per hour in 

fiscal year 2009. 

(b) Printed updated schedules of the 

laboratory testing fees for processed 

fruits and vegetables (7 CFR part 93), 

poultry and egg products (7 CFR part 

94), and meat and meat products (7 CFR 

part 98) will be available for distribution 

to Science and Technology’s 

constituents and stakeholders by the 

individual Laboratory Managers of 

Science and Technology laboratories 

listed in § 91.5. These single test 

laboratory fee schedules are based upon 

the applicable hourly fee rate stated in 

§ 91.37(a). 

(c) Except as otherwise provided in 

this section, charges will be made at the 

applicable hourly rate stated in 

§ 91.37(a) for the time required to 

perform the service. A charge will be 

made for service pursuant to each 

request or certificate issued. 

(d) When a laboratory test service is 

provided for AMS by a commercial or 

State government laboratory, the 

applicant will be assessed a fee which 

covers the costs to the Science and 

Technology program for the service 

provided. 

(e) When Science and Technology 

staff provides applied and 

developmental research and training 

activities for microbiological, physical, 

chemical, and biomolecular analyses on 

agricultural commodities the applicant 

will be charged a fee on a reimbursable 

cost to AMS basis. 

■ 4. Section 91.38 is revised to read as 

follows: 

§ 91.38 Additional fees for appeal of 

analysis. 

(a) The applicant for appeal sample 

testing will be charged a fee at the 

hourly rate for laboratory service that 

appears in this paragraph. The new 

fiscal year for Science and Technology 

Programs commences on October 1 of 

each calendar year. The appeal rate for 

laboratory service is $71.00 per hour in 

fiscal year 2007, $74.00 per hour in 

fiscal year 2008, and $78.00 per hour in 

fiscal year 2009. 

(b) The appeal fee will not be waived 

for any reason if analytical testing was 

completed in addition to the original 

analysis. 

■ 5. Section 91.39 is revised to read as 

follows: 

§ 91.39 Premium hourly fee rates for 

overtime and legal holiday service. 

(a) When analytical testing in a 

Science and Technology facility 

requires the services of laboratory 

personnel beyond their regularly 

assigned tour of duty on any day or on 

a day outside the established schedule, 

such services are considered as overtime 

work. When analytical testing in a 

Science and Technology facility 

requires the services of laboratory 

personnel on a Federal holiday or a day 

designated in lieu of such a holiday, 

such services are considered holiday 

work. Laboratory analyses initiated at 

the request of the applicant to be 

rendered on Federal holidays, and on an 

overtime basis will be charged fees at 

hourly rates for laboratory service that 

appear in this paragraph. The new fiscal 

year for Science and Technology 

Programs commences on October 1 of 

each calendar year. The laboratory 

analysis rate for overtime service is 

$71.00 per hour in fiscal year 2007, 

$74.00 per hour in fiscal year 2008, and 

$78.00 per hour in fiscal year 2009. The 

laboratory analysis rate for Federal 

holiday or designed holiday service is 

$82.00 per hour in fiscal year 2007, 

$85.00 per hour in fiscal year 2008, and 

$89.00 per hour in fiscal year 2009. 

(b) Information on legal holidays or 

what constitutes overtime service at a 

particular Science and Technology 

laboratory is available from the 

Laboratory Manager or facility 

supervisor. 

■ 6. Section 91.42 is revised to read as 

follows: 

§ 91.42 Billing. 

(a) Each billing cycle will end on the 

25th of the month. The applicant will be 

billed by the National Finance Center 

(NFC) using the Foundation Financial 

Information System (FFIS) on the 1st 

day, following the end of the billing 

cycle in which voluntary laboratory 

services and other services were 

rendered at a particular Science and 

Technology laboratory or office. 

(b) The total charge or fee shall 

normally be stated directly on the 

analysis report or on a standardized 

official certificate form for the 

laboratory analysis of a specific 

agricultural commodity and related 

commodity products. 

(c) The actual bill for collection will 

be issued by the USDA, National 

Finance Center Billings and Collection 

Branch, (Mail: P.O. Box 60075), 13800 

Old Gentilly Road, New Orleans, 

Louisiana 70160–0001. 

PART 92—[REMOVED AND 

RESERVED] 

■ 7. Part 92 is removed and reserved. 

Dated: March 23, 2007. 

Lloyd C. Day, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. E7–5787 Filed 3–29–07; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 981 

[Docket No. FV06–981–1 FR] 

Almonds Grown in California; 

Outgoing Quality Control 

Requirements 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This rule adds outgoing 

quality control requirements under the 

administrative rules and regulations of 

the California almond marketing order 

(order). The order regulates the handling 

of almonds grown in California and is 

administered locally by the Almond 

Board of California (Board). This rule 

provides for a mandatory program under 

the order to reduce the potential for 

Salmonella bacteria in almonds. This 

action will help ensure that quality 

almonds are available for human 

consumption. 

DATES: This rule is effective on March 

31, 2007. Handler treatment plans for 

the 2007–08 crop year must be 

submitted by May 31, 2007. Mandatory 

compliance with this rule begins 

September 1, 2007. 

FOR FURTHER INFORMATION CONTACT: 

Maureen T. Pello, Assistant Regional 

Manager, or Kurt J. Kimmel, Regional 

Manager, California Marketing Field 

Office, Marketing Order Administration 

Branch, Fruit and Vegetable Programs, 

AMS, USDA, Telephone: (559) 487–

5901, Fax: (559) 487–5906, or E-mail: 

Maureen.Pello@usda.gov, or 

Kurt.Kimmel@usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Jay Guerber, 

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: 

Jay.Guerber@usda.gov. 

SUPPLEMENTARY INFORMATION: This final 

rule is issued under Marketing Order 

No. 981, as amended (7 CFR part 981), 

regulating the handling of almonds 

grown in California, hereinafter referred 


cprice-sewell on PROD1PC66 with RULES