This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

4194

Vol. 62, No. 19

Wednesday, January 29, 1997

DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Parts 401 and 457

General Crop Insurance Regulations,

Rice Endorsement; and Common Crop

Insurance Regulations, Rice Crop

Insurance Provisions

AGENCY: Federal Crop Insurance

Corporation, USDA.

ACTION: Proposed rule.

SUMMARY: The Federal Crop Insurance

Corporation (FCIC) proposes specific

crop provisions for the insurance of rice.

The provisions will be used in

conjunction with the Common Crop

Insurance Policy Basic Provisions,

which contain standard terms and

conditions common to most crops. The

intended effect of this action is to

provide policy changes to better meet

the needs of the insured, include the

current Rice Endorsement with the

Common Crop Insurance Policy for ease

of use and consistency of terms, and to

restrict the effect of the current Rice

Endorsement to the 1997 and prior crop

years.

DATES: Written comments, data, and

opinions on this proposed rule will be

accepted until close of business March

31, 1997 and will be considered when

the rule is to be made final. The

comment period for information

collections under the Paperwork

Reduction Act of 1995 continues

through March 31, 1997.

ADDRESSES: Interested persons are

invited to submit written comments to

the Chief, Product Development Branch,

Federal Crop Insurance Corporation,

United States Department of

Agriculture, 9435 Holmes Road, Kansas

City, MO 64131. Written comments will

be available for public inspection and

copying in room 0324, South Building,

United States Department of

Agriculture, 14th and Independence

Avenue, S.W., Washington, D.C., 8:15

a.m. to 4:45 p.m., est, Monday through

Friday, except holidays.

FOR FURTHER INFORMATION CONTACT:

Linda Williams, Program Analyst,

Research and Development Division,

Product Development Branch, Federal

Crop Insurance Corporation, at the

Kansas City, MO, address listed above,

telephone (816) 926–7730.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

The Office of Management and Budget

(OMB) has determined this rule to be

exempt for the purposes of Executive

Order 12866, and therefore, this rule has

not been reviewed by OMB.

Paperwork Reduction Act of 1995

The amendments set forth in this

proposed rule contains information

collections that require clearance by

Office of Management and Budget

(OMB) under the provisions of 44 U.S.C.

chapter 35.

The title of this information collection

is ‘‘Catastrophic Risk Protection Plan

and Related Requirements including,

Common Crop Insurance Regulations;

Rice Crop Insurance Provisions.’’ The

information to be collected includes a

crop insurance application and an

acreage report. Information collected

from the application and acreage report

is electronically submitted to FCIC by

the reinsured companies. Potential

respondents to this information

collection are producers of rice that are

eligible for Federal crop insurance.

The information requested is

necessary for the reinsured companies

and FCIC to provide insurance and

reinsurance, determine eligibility,

determine the correct parties to the

agreement or contract, determine and

collect premiums or other monetary

amounts, and pay benefits.

All information is reported annually.

The reporting burden for this collection

of information is estimated to average

16.9 minutes per response for each of

the 3.6 responses from approximately

1,755,015 respondents. The total annual

burden on the public for this

information collection is 2,676,932

hours.

FCIC is requesting comments on the

following: (a) whether the proposed

collection of information is necessary

for the proper performance of the

functions of the agency, including

whether the information shall have

practical utility; (b) the accuracy of the

agency’s estimate of the burden of the

proposed collection of information; (c)

ways to enhance the quality, utility, and

clarity of the information to be

collected; and (d) ways to minimize the

burden of the collection of information

on respondents, including through the

use of automated collection techniques

or other forms of information gathering

technology.

Comments regarding paperwork

reduction should be submitted to the

Desk Officer for Agriculture, Office of

Information and Regulatory Affairs,

Office of Management and Budget,

Washington, D.C. 20503.

OMB is required to make a decision

concerning the collections of

information contained in these

proposed regulations between 30 and 60

days after submission to OMB.

Therefore, a comment to OMB is best

assured of having full effect if OMB

receives it within 30 days of

publication. This does not affect the

deadline for the public to comment on

the proposed regulation.

Unfunded Mandates Reform Act of

1995

Title II of the Unfunded Mandates

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. This rule contains no Federal

mandates (under the regulatory

provisions of title II of the UMRA) for

state, local, and tribal governments or

the private sector. Thus, this rule is not

subject to the requirements of sections

202 and 205 of the UMRA.

Executive Order 12612

It has been determined under section

6(a) of Executive Order No. 12612,

Federalism, that this rule does not have

sufficient federalism implications to

warrant the preparation of a Federalism

Assessment. The provisions contained

in this rule will not have a substantial

direct effect on states or their political

subdivisions, or on the distribution of

power and responsibilities among the

various levels of government.

Regulatory Flexibility Act

This regulation will not have a

significant impact on a substantial

number of small entities. New

provisions included in this rule will not

impact small entities to a greater extent

than large entities. Under the current
Federal Register / Vol. 62, No. 19 / Wednesday, January 29, 1997 / Proposed Rules 4195

regulations, a producer is required to

complete an application and acreage

report. If the crop is damaged or

destroyed, the insured is required to

give notice of loss and provide the

necessary information to complete a

claim for indemnity. The insured must

also annually certify to the previous

years production if adequate records are

available to support the certification.

The producer must maintain the

production records to support the

certified information for at least three

years. This regulation does not alter

those requirements. The amount of work

required of the insurance companies

delivering and servicing these policies

will not increase significantly from the

amount of work currently required. This

rule does not have any greater or lesser

impact on the producer. Therefore, this

action is determined to be exempt from

the provisions of the Regulatory

Flexibility Act (5 U.S.C. 605), and no

Regulatory Flexibility Analysis was

prepared.

Federal Assistance Program

This program is listed in the Catalog

of Federal Domestic Assistance under

No. 10.450.

Executive Order 12372

This program is not subject to the

provisions of Executive Order 12372,

which require intergovernmental

consultation with state and local

officials. See the Notice related to 7 CFR

part 3015, subpart V, published at 48 FR

29115, June 24, 1983.

Executive Order 12778

The Office of the General Counsel has

determined that these regulations meet

the applicable standards provided in

sections 2(a) and 2(b)(2) of Executive

Order 12778. The provisions of this rule

will not have a retroactive effect prior to

the effective date. The provisions of this

rule will preempt state and local laws to

the extent such state and local laws are

inconsistent herewith. The

administrative appeal provisions

published at 7 CFR parts 11 and 780

must be exhausted before any action for

judicial review may be brought.

Environmental Evaluation

This action is not expected to have a

significant impact on the quality of the

human environment, health, and safety.

Therefore, neither an Environmental

Assessment nor an Environmental

Impact Statement is needed.

National Performance Review

This regulatory action is being taken

as part of the National Performance

Review Initiative to eliminate

unnecessary or duplicative regulations

and improve those that remain in force.

Background

FCIC proposes to add to the Common

Crop Insurance Regulations (7 CFR part

457), a new section, 7 CFR § 457.141,

Rice Crop Insurance Provisions. The

new provisions will be effective for the

1998 and succeeding crop years. These

provisions will replace and supercede

the current provisions for insuring rice

found at 7 CFR § 401.120 (Rice

Endorsement). FCIC also proposes to

amend § 401.120 to limit its effect to the

1997 and prior crop years. FCIC will

later publish a regulation to remove and

reserve § 401.120.

This rule makes minor editorial and

format changes to improve the Rice

Endorsement’s compatibility with the

Common Crop Insurance Policy. In

addition, FCIC is proposing substantive

changes in the provisions for insuring

rice as follows:

1. Section 1—Add definitions for the

terms ‘‘FSA,’’ ‘‘flood irrigation,’’ ‘‘good

farming practices,’’ ‘‘irrigated practice,’’

‘‘local market price,’’ ‘‘practical to

replant,’’ ‘‘saline water,’’ ‘‘swathed,’’

‘‘total milling yield’’ and ‘‘written

agreement’’ for clarification. The

definition of ‘‘harvest’’ has been

amended for clarification.

2. Section 4—Change the contract

change date to November 30 for all

counties to maintain an adequate time

period between this date and the revised

cancellation dates (see item 3 below).

3. Section 5—Change the cancellation

and termination dates to February 28 in

states and counties that currently have

March 31 and April 15 dates, to

February 15 in states and counties that

currently have March 15 dates, and to

January 15 in states and counties that

currently have February 15 dates. These

changes are made to standardize the

cancellation and termination dates with

the sales closing dates which were

amended to comply with the

requirement of the Federal Crop

Insurance Reform Act of 1994 that

spring planted crop sales closing dates

be moved ahead by 30 days.

4. Section 6—Current provisions for

rice that state that any acreage destroyed

to comply with United States

Department of Agriculture programs

will not be insured have been deleted

from the proposed rice crop provisions.

Under those provisions insurance was

provided on a crop until it was

destroyed without any premium being

paid.

5. Section 6(c)—Add a provision that

requires the insured crop to be flood

irrigated. Current regulations only

require the rice crop be irrigated. This

change will insure that adequate water

covers the crop during the growing

season.

6. Section 6(d)—Add a provision

which makes wild rice uninsurable. The

current regulation is mute regarding

wild rice, but coverage has never been

intended for wild rice.

7. Section 7—Add a provision which

makes acreage uninsurable if it does not

meet the rotation requirements

contained in the Special Provisions, or

if it was planted to rice the preceding

crop year unless otherwise allowed by

the Special Provisions. Also added a

provision which states that any acreage

of the insured crop damaged prior to the

final planting date must be replanted

unless the insurer agrees that replanting

is not practical.

8. Section 10(a)(3)—Clarify that

replanted rice must be seeded at a rate

that is normal for initially planted rice

to be eligible to receive a replanting

payment.

9. Section 10(c)—Reduce the liability

for a unit by the amount of any

replanting payment, when rice is

replanted using a practice that was

originally uninsurable. The current rice

provisions are mute regarding this issue.

This addition is consistent with the

replant provisions under the same

circumstances for other crops.

10. Sections 12(d)(1) and (2)—Add

provisions to permit an insured to be

eligible for both moisture and quality

adjustments to be consistent with other

crop policies which offer moisture and

quality adjustments.

11. Section 12(d)(4)—Allow the use of

a standard quality adjustment if

provided in the Special Provisions. The

use of such a standard simplifies the

loss adjustment process and assures

consistent adjustment for insureds with

quality related losses.

12. Section 14—Adds provisions for

providing insurance coverage by written

agreement. FCIC has a long standing

policy of permitting certain

modifications of the insurance contract

by written agreement for some policies.

This amendment allows FCIC to tailor

the policy to a specific insured in

certain instances. The new section will

cover the procedures for and duration of

written agreements.

List of Subjects in 7 CFR Parts 401 and

457

Crop insurance, Rice, Rice

endorsement.

Proposed Rule

For the reasons set forth in the

preamble, the Federal Crop Insurance

Corporation hereby proposes to amend

7 CFR parts 401 and 457 as follows:
4196 Federal Register / Vol. 62, No. 19 / Wednesday, January 29, 1997 / Proposed Rules

PART 401—GENERAL CROP

INSURANCE REGULATIONS—

REGULATIONS FOR THE 1988 AND

SUBSEQUENT CONTRACT YEARS

1. The authority citation for 7 CFR

part 401 continues to read as follows:

Authority: 7 U.S.C. 1506(l), 1506(p).

2. The introductory text of § 401.120

is revised to read as follows:

§ 401.120 Rice endorsement.

The provisions of the Rice Crop

Insurance Endorsement for the 1988

through the 1997 crop years are as

follows:

* * * * *

PART 457—COMMON CROP

INSURANCE REGULATIONS;

REGULATIONS FOR THE 1994 AND

SUBSEQUENT CONTRACT YEARS

3. The authority citation for 7 CFR

part 457 continues to read as follows:

Authority: 7 U.S.C. 1506(l), 1506(p).

4. 7 CFR part 457 is amended by

adding a new § 457.141 to read as

follows:

§ 457.141 Rice Crop Insurance Provisions.

The Rice Crop Insurance Provisions

for the 1998 and succeeding crop years

are as follows:

FCIC policies:

DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

Reinsured policies:

(Appropriate title for insurance provider)

Both FCIC and reinsured policies:

RICE CROP PROVISIONS

If a conflict exists among the Basic

Provisions (§ 457.8), these crop provisions,

and the Special Provisions; the Special

Provisions will control these crop provisions

and the Basic Provisions; and these crop

provisions will control the Basic Provisions.

1. Definitions

Days—Calendar days.

Final planting date—The date contained in

the Special Provisions for the insured crop by

which the crop must initially be planted in

order to be insured for the full production

guarantee.

Flood irrigation—A method of irrigation

commonly used for rice production whereby

the planted acreage is intentionally covered

with water that is maintained at a uniform

and shallow depth throughout the growing

season.

FSA—The Farm Service Agency, an agency

of the United States Department of

Agriculture, or a successor agency.

Good farming practices—The cultural

practices generally in use in the county for

the crop to make normal progress toward

maturity and produce at least the yield used

to determine the production guarantee, and

are those recognized by the Cooperative State

Research, Education, and Extension Service

as compatible with agronomic and weather

conditions in the county.

Harvest—Combining or threshing the rice

for grain. A crop that is swathed prior to

combining is not considered harvested.

Irrigated practice—A method of producing

a crop by which water is artificially applied

during the growing season by appropriate

systems and at the proper times, with the

intention of providing the quantity of water

needed to produce at least the yield used to

establish the irrigated production guarantee

on the irrigated acreage planted to the

insured crop.

Late planted—Acreage planted to the

insured crop during the late planting period.

Late planting period—The period that

begins the day after the final planting date for

the insured crop and ends twenty-five (25)

days after the final planting date.

Local market price—The cash price per

pound for the U.S. No. 3 grade of rough rice

offered by buyers in the area in which you

normally market the rice. Factors not

associated with grading under the United

States Standards for Rice including, but not

limited to protein and oil or milling quality

will not be considered.

Planted—The uniform placement of an

adequate amount of rice seed into a prepared

seedbed by one of the following methods:.

(a) Drill seeding—Using a grain drill to

incorporate the seed to a proper soil depth;

(b) Broadcast seeding—Distributing seed

evenly onto the surface of an un-flooded

seedbed followed by either timely

mechanical incorporation of the seed to a

proper soil depth in the seedbed or flushing

the seedbed with water; or

(c) Broadcast seeding into a controlled

flood—Distributing the rice seed onto a

prepared seedbed that has been intentionally

covered to a proper depth by water. The

water must be free of movement and be

completely contained on the acreage by

properly constructed levees and gates.

Acreage seeded in any other manner will

not be insurable unless otherwise provided

by the Special Provisions or by written

agreement.

Practical to replant—In lieu of the

definition of ‘‘Practical to replant’’ contained

in section 1 of the Basic Provisions (§ 457.8),

practical to replant is defined as our

determination, after loss or damage to the

insured crop, based on factors, including but

not limited to moisture availability,

marketing windows, condition of the field,

and time to crop maturity, that replanting the

insured crop will allow the crop to attain

maturity prior to the calendar date for the

end of the insurance period. It will not be

considered practical to replant after the end

of the late planting period unless replanting

is generally occurring in the area.

Prevented planting—Inability to plant the

insured crop with proper equipment by the

final planting date designated in the Special

Provisions for the insured crop in the county

or the end of the late planting period. You

must have been unable to plant the insured

crop due to an insured cause of loss that has

prevented the majority of producers in the

surrounding area from planting the same

crop.

Production guarantee (per acre)—The

number of pounds determined by

multiplying the approved APH yield per acre

by the coverage level percentage you elect.

Replanting—Performing the cultural

practices necessary to replace the rice seed

and then replacing the rice seed in the

insured acreage with the expectation of

growing a successful crop.

Saline water—Water that contains a

concentration of salt that causes damage to

the insured crop.

Second crop rice—The regrowth of a stand

of rice following harvest of the initially

insured rice crop that can be harvested in the

same crop year.

Swathed—Severance of the stem and grain

head from the ground without removal of the

rice kernels from the plant and placing in a

windrow.

Timely planted—Planted on or before the

final planting date designated in the Special

Provisions for the insured crop in the county.

Total milling yield—Rice production

consisting of heads, second heads,

screenings, and brewer’s rice as defined by

the official United States Standards for Rice.

Written agreement—A written document

that alters designated terms of this policy in

accordance with section 14.

2. Unit Division

(a) Unless limited by the Special

Provisions, a unit as defined in section 1

(Definitions) of the Basic Provisions (§ 457.8),

(basic unit) may be divided into optional

units if, for each optional unit you meet all

the conditions of this section or if a written

agreement to such division exists.

(b) Basic units may not be divided into

optional units on any basis including, but not

limited to, production practice, type, variety,

and planting period, other than as described

in this section.

(c) If you do not comply fully with these

provisions, we will combine all optional

units that are not in compliance with these

provisions into the basic unit from which

they were formed. We will combine the

optional units at any time we discover that

you have failed to comply with these

provisions. If failure to comply with these

provisions is determined to be inadvertent,

and the optional units are combined into a

basic unit, that portion of the additional

premium paid for the optional units that

have been combined will be refunded to you.

(d) All optional units you selected for the

crop year must be identified on the acreage

report for that crop year.

(e) The following requirements must be

met for each optional unit:

(1) You must have records, which can be

independently verified, of planted acreage

and production for each optional unit for at

least the last crop year used to determine

your production guarantee;

(2) You must plant the crop in a manner

that results in a clear and discernable break

in the planting pattern at the boundaries of

each optional unit;

(3) You must have records of marketed

production or measurement of stored

production from each optional unit

maintained in such a manner that permits us

to verify the production from each optional

unit, or the production from each unit must

be kept separate until loss adjustment is

completed by us; and
Federal Register / Vol. 62, No. 19 / Wednesday, January 29, 1997 / Proposed Rules 4197

(4) Each optional unit must be located in

a separate legally identified section. In the

absence of sections, we may consider parcels

of land legally identified by other methods of

measure including, but not limited to

Spanish grants, railroad surveys, leagues,

labors, or Virginia Military Lands, as the

equivalent of sections for unit purposes. In

areas that have not been surveyed using the

systems identified above, or another system

approved by us, or in areas where such

systems exist but boundaries are not readily

discernable, each optional unit must be

located in a separate farm identified by a

single FSA Farm Serial Number.

3. Insurance Guarantees, Coverage Levels,

and Prices for Determining Indemnities

In addition to the requirements of section

3 (Insurance Guarantees, Coverage Levels,

and Prices for Determining Indemnities) of

the Basic Provisions (§ 457.8), you may select

only one price election for all the rice in the

county insured under this policy unless the

Special Provisions provide different price

elections by type, in which case you may

select one price election for each rice type

designated in the Special Provisions. The

price elections you choose for each type must

have the same percentage relationship to the

maximum price offered by us for each type.

For example, if you choose 100 percent of the

maximum price election for one type, you

must also choose 100 percent of the

maximum price election for all other types.

4. Contract Changes

In accordance with section 4 (Contract

Changes) of the Basic Provisions (§ 457.8),

the contract change date is November 30

preceding the cancellation date.

5. Cancellation and Termination Dates

In accordance with section 2 (Life of

Policy, Cancellation and Termination) of the

Basic Provisions (§ 457.8), the cancellation

and termination dates are:

State and county

Cancellation

and termination date

Jackson, Victoria, Goliad,

Bee, Live Oak, McMullen,

La Salle, and Dimmit Counties, Texas; and all Texas

counties south thereof.

January 15.

Florida .................................... February 15.

All other Texas counties and

all other states.

February 28.

6. Insured Crop

In accordance with section 8 (Insured

Crop) of the Basic Provisions (§ 457.8), the

crop insured will be all the rice in the county

for which a premium rate is provided by the

actuarial table:

(a) In which you have a share;

(b) That is planted for harvest as grain;

(c) That is flood irrigated; and

(d) That is not wild rice.

7. Insurable Acreage

In addition to the provisions of section 9

(Insurable Acreage) of the Basic Provisions

(§ 457.8):

(a) We will not insure any acreage planted

to rice:

(1) The preceding crop year unless allowed

by the Special Provisions; or

(2) That does not meet the rotation

requirements shown in the Special

Provisions; and

(b) Any acreage of the insured crop

damaged before the final planting date, to the

extent that producers in the area would

normally not further care for the crop, must

be replanted unless we agree that replanting

is not practical.

8. Insurance Period

In accordance with the provisions of

section 11 (Insurance Period) of the Basic

Provisions (§ 457.8), the calendar date for the

end of the insurance period is October 31

immediately following planting.

9. Causes of Loss

(a) In accordance with the provisions of

section 12 (Causes of Loss) of the Basic

Provisions (§ 457.8), insurance is provided

only against the following causes of loss that

occur during the insurance period:

(1) Adverse weather conditions;

(2) Fire;

(3) Insects, but not damage due to

insufficient or improper application of pest

control measures;

(4) Plant disease, but not damage due to

insufficient or improper application of

disease control measures;

(5) Wildlife;

(6) Earthquake;

(7) Volcanic eruption; or

(8) Failure of the irrigation water supply,

if caused by an insured peril that occurs

during the insurance period.

(b) In addition to the causes of loss not

insured against in section 12 (Causes of Loss)

of the Basic Provisions (§ 457.8), we will not

insure against any loss of production due to

the application of saline water.

10. Replanting Payment

(a) A replant payment for rice is allowed

as follows:

(1) You must comply with all requirements

regarding replanting payments contained

under section 13 (Replanting Payment) of the

Basic Provisions (§ 457.8);

(2) The rice must be damaged by an

insurable cause of loss to the extent that the

remaining stand will not produce at least 90

percent of the production guarantee for the

acreage; and

(3) The replanted rice must be seeded at a

rate that is normal for initially planted rice

(if new seed is planted at a reduced seeding

rate into a partially damaged stand of rice,

the acreage will not be eligible for a

replanting payment).

(b) In accordance with the provisions of

section 13 (Replanting Payment) of the Basic

Provisions (§ 457.8), the maximum amount of

the replanting payment per acre will be the

lesser of twenty percent of the production

guarantee or 400 pounds, multiplied by your

price election, multiplied by your insured

share.

(c) When rice is replanted using a practice

that is uninsurable for an original planting,

the liability for the unit will be reduced by

the amount of the replanting payment. The

premium amount will not be reduced.

11. Duties in the Event of Damage or Loss

In accordance with the requirements of

section 14 (Duties in the Event of Damage or

Loss) of the Basic Provisions (§ 457.8), the

representative samples of the unharvested

crop must be at least 10 feet wide and extend

the entire length of each field in the unit. The

samples must not be harvested or destroyed

until the earlier of our inspection or 15 days

after harvest of the balance of the unit is

completed.

12. Settlement of Claim

(a) We will determine your loss on a unit

basis. In the event you are unable to provide

separate acceptable production records:

(1) For any optional units, we will combine

all optional units for which such production

records were not provided; or

(2) For any basic units, we will allocate any

commingled production to such units in

proportion to our liability on the harvested

acreage for the units.

(b) In the event of loss or damage covered

by this policy, we will settle your claim on

any unit by:

(1) Multiplying the insured acreage by its

respective production guarantee by type, if

applicable;

(2) Multiplying each result in section

12(b)(1) by the respective price election, by

type, if applicable;

(3) Totaling the results of section 12(b)(2);

(4) Multiplying the total production to be

counted by type, if applicable, (see section

12(c) through (e)) by the respective price

election;

(5) Totaling the results of section 12(b)(4);

(6) Subtracting the total of section 12(b)(5)

from the total of section 12(b)(3); and

(7) Multiplying the result of section

12(b)(6) by your share.

(c) The total production to count (in

pounds) from all insurable acreage on the

unit will include:

(1) All appraised production as follows:

(i) Not less than the production guarantee

for acreage:

(A) That is abandoned;

(B) Put to another use without our consent;

(C) That is damaged solely by uninsured

causes; or

(D) For which you fail to provide

acceptable production records;

(ii) Production lost due to uninsured

causes;

(iii) Unharvested production (mature

unharvested production may be adjusted for

quality deficiencies and excess moisture in

accordance with section 12(d));

(iv) Potential production on insured

acreage that you intend to put to another use

or abandon, if you and we agree on the

appraised amount of production. Upon such

agreement, the insurance period for that

acreage will end when you put the acreage

to another use or abandon the crop. If

agreement on the appraised amount of

production is not reached:

(A) If you do not elect to continue to care

for the crop, we may give you consent to put

the acreage to another use if you agree to

leave intact, and provide sufficient care for,

representative samples of the crop in

locations acceptable to us, (The amount of

production to count for such acreage will be
4198 Federal Register / Vol. 62, No. 19 / Wednesday, January 29, 1997 / Proposed Rules

based on the harvested production or

appraisals from the samples at the time

harvest should have occurred. If you do not

leave the required samples intact, or you fail

to provide sufficient care for the samples, our

appraisal made prior to giving you consent to

put the acreage to another use will be used

to determine the amount of production to

count); or

(B) If you elect to continue to care for the

crop, the amount of production to count for

the acreage will be the harvested production,

or our reappraisal if additional damage

occurs and the crop is not harvested; and

(2) All harvested production from the

insurable acreage, including any production

from a second rice crop harvested in the

same crop year.

(d) Mature rough rice may be adjusted for

excess moisture and quality deficiencies. If

moisture adjustment is applicable, it will be

made prior to any adjustment for quality.

(1) Production will be reduced by 0.12

percent for each 0.1 percentage point of

moisture in excess of twelve percent. We may

obtain samples of the production to

determine the moisture content.

(2) Production will be eligible for quality

adjustment if:

(i) Deficiencies in quality, in accordance

with the Official United States Standards for

Rice, result in rice not meeting the grade

requirements for U.S. No. 3, (grades U.S. No.

4 or worse), because of red rice, chalky

kernels or damaged kernels;

(ii) The rice has a total milling yield of less

than 68 pounds per hundredweight;

(iii) The whole kernel weight is less than

55 pounds per hundredweight of milled rice

for medium and short grain varieties;

(iv) The whole kernel weight is less than

48 pounds per hundredweight of milled rice

for long grain varieties; or

(v) Substances or conditions are present

that are identified by the Food and Drug

Administration or other public health

organizations of the United States as being

injurious to human or animal health.

(3) Quality will be a factor in determining

your loss only if:

(i) The deficiencies, substances, or

conditions specified in section 12(d)(2)

resulted from a cause of loss against which

insurance is provided under these crop

provisions and which occurs within the

insurance period;

(ii) The deficiencies, substances, or

conditions specified in section 12(d)(2) result

in a net price for the damaged production

that is less than the local market price;

(iii) All determinations of these

deficiencies, substances, or conditions

specified in section 12(d)(2) are made using

samples of the production obtained by us or

by a disinterested third party approved by us;

and

(iv) The samples are analyzed by a grader

licensed to grade rice under the authority of

the United States Agriculture Marketing Act

or the United States Warehouse Act with

regard to deficiencies in quality, or by a

laboratory approved by us with regard to

substances or conditions injurious to human

or animal health. Notwithstanding the

preceding sentence, test weight for quality

adjustment purposes may be determined by

our loss adjuster.

(4) Rice production that is eligible for

quality adjustment, as specified in sections

12(d)(2) and (3), will be reduced as follows:

(i) In accordance with quality adjustment

factors contained in the Special Provisions;

or

(ii) If quality adjustment factors are not

contained in the Special Provisions, as

follows:

(A) The market price of the qualifying

damaged production and the local market

price will be determined on the earlier of the

date such quality adjusted production is sold

or the date of final inspection for the unit.

The price for the qualifying damaged

production will be the market price for the

local area to the extent feasible. Discounts

used to establish the net price of the damaged

production will be limited to those that are

usual, customary, and reasonable. The price

will not be reduced for:

(1) Moisture content;

(2) Damage due to uninsured causes; or

(3) Drying, handling, processing, or any

other costs associated with normal

harvesting, handling, and marketing of the

rice; except, if the price of the damaged

production can be increased by conditioning,

we may reduce the price of the production

after it has been conditioned by the cost of

conditioning but not lower than the value of

the production before conditioning,

(We may obtain prices from any buyer of

our choice. If we obtain prices from one or

more buyers located outside your local

market area, we will reduce such prices by

the additional costs required to deliver the

rice to those buyers.);

(B) The value of the damaged or

conditioned production will be divided by

the local market price to determine the

quality adjustment factor; and

(C) The number of pounds remaining after

any reduction due to excessive moisture (the

moisture-adjusted gross pounds (if

appropriate)) of the damaged or conditioned

production will then be multiplied by the

quality adjustment factor to determine the

net production to count.

(e) Any production harvested from plants

growing in the insured crop may be counted

as production of the insured crop on a weight

basis.

13. Late Planting and Prevented Planting

(a) In lieu of provisions contained in the

Basic Provisions (§ 457.8) regarding acreage

initially planted after the final planting date

and the applicability of a Late Planting

Agreement Option, insurance will be

provided for acreage planted to the insured

crop during the late planting period (see

section 13(c)), and acreage you were

prevented from planting (see section 13(d)).

These coverages provide reduced production

guarantees. The premium amount for late

planted acreage and eligible prevented

planting acreage will be the same as that for

timely planted acreage. If the amount of

premium you are required to pay (gross

premium less our subsidy) for late planted

acreage or prevented planting acreage

exceeds the liability on such acreage,

coverage for those acres will not be provided,

no premium will be due, and no indemnity

will be paid for such acreage.

(b) If you were prevented from planting,

you must provide written notice to us not

later than the acreage reporting date.

(c) Late Planting

(1) For rice acreage planted during the late

planting period, the production guarantee for

each acre will be reduced for each day

planted after the final planting date by:

(i) One percent per day for the 1st through

the 10th day; and

(ii) Two percent per day for the 11th

through the 25th day.

(2) In addition to the requirements of

section 6 (Report of Acreage) of the Basic

Provisions (§ 457.8), you must report the

dates the acreage is planted within the late

planting period.

(3) If planting of rice continues after the

final planting date, or you are prevented from

planting during the late planting period, the

acreage reporting date will be the later of:

(i) The acreage reporting date contained in

the Special Provisions for the insured crop;

or

(ii) Five days after the end of the late

planting period.

(d) Prevented Planting (Including Planting

After the Late Planting Period)

(1) If you were prevented from timely

planting rice, you may elect:

(i) To plant rice during the late planting

period. The production guarantee for such

acreage will be determined in accordance

with section 13(c)(1);

(ii) Not to plant this acreage to any crop

except a cover crop not for harvest. You may

also elect to plant the insured crop after the

late planting period. In either case, the

production guarantee for such acreage will be

thirty-five percent of the production

guarantee for timely planted acres. For

example, if your production guarantee for

timely planted acreage is 2,000 pounds per

acre, your prevented planting production

guarantee would be 700 pounds per acre

(2,000 pounds multiplied by 0.35). If you

elect to plant the insured crop after the late

planting period, production to count for such

acreage will be determined in accordance

with sections 12 (c) through (e); or

(iii) Not to plant the intended crop but

plant a substitute crop for harvest, in which

case:

(A) No prevented planting production

guarantee will be provided for such acreage

if the substitute crop is planted on or before

the 10th day following the final planting date

for the insured crop; or

(B) A production guarantee equal to

seventeen and five tenths percent of the

production guarantee for timely planted acres

will be provided for such acreage, if the

substitute crop is planted after the 10th day

following the final planting date for the

insured crop. If you elected the Catastrophic

Risk Protection Endorsement or excluded

this coverage, and plant a substitute crop, no

prevented planting coverage will be

provided. For example, if your production

guarantee for timely planted acreage is 2,000

pounds per acre, your prevented planting

production guarantee would be 350 pounds

per acre (2,000 pounds multiplied by 0.175).

You may elect to exclude prevented planting

coverage when a substitute crop is planted

for harvest and receive a reduction in the
Federal Register / Vol. 62, No. 19 / Wednesday, January 29, 1997 / Proposed Rules 4199

applicable premium rate. If you wish to

exclude this coverage, you must so indicate,

on or before the sales closing date, on your

application or on a form approved by us.

Your election to exclude this coverage will

remain in effect from year to year unless you

notify us in writing on our form by the

applicable sales closing date for the crop year

for which you wish to include this coverage.

All acreage of the crop insured under this

policy will be subject to this exclusion.

(2) Production guarantees for timely, late,

and prevented planting acreage within a unit

will be combined to determine the

production guarantee for the unit. For

example, assume you insure one unit in

which you have a 100 percent share. The unit

consists of 150 acres, of which 50 acres were

planted timely, 50 acres were planted seven

(7) days after the final planting date (late

planted), and 50 acres were not planted but

are eligible for a prevented planting

production guarantee. The production

guarantee for the unit will be computed as

follows:

(i) For the timely planted acreage, multiply

the per acre production guarantee for timely

planted acreage by the 50 acres planted

timely;

(ii) For the late planted acreage, multiply

the per acre production guarantee for timely

planted acreage by ninety-three percent and

multiply the result by the 50 acres planted

late; and

(iii) For prevented planting acreage,

multiply the per acre production guarantee

for timely planted acreage by:

(A) Thirty-five percent and multiply the

result by the 50 acres you were prevented

from planting, if the acreage is eligible for

prevented planting coverage, and if the

acreage is left idle for the crop year, or if a

cover crop is planted not for harvest.

Prevented planting compensation hereunder

will not be denied because the cover crop is

hayed or grazed; or

(B) Seventeen and five tenths percent and

multiply the result by the 50 acres you were

prevented from planting, if the acreage is

eligible for prevented planting coverage, and

if you elect to plant a substitute crop for

harvest after the 10th day following the final

planting date for the insured crop. (This

paragraph (B) is not applicable, and

prevented planting coverage is not available

under these crop provisions, if you elected

the Catastrophic Risk Protection

Endorsement or you elected to exclude

prevented planting coverage when a

substitute crop is planted (see section 13

(d)(1)(iii))).

Your premium will be based on the result

of multiplying the per acre production

guarantee for timely planted acreage by the

150 acres in the unit.

(3) You must have the inputs available to

plant and produce the intended crop with the

expectation of at least producing the

production guarantee. Proof that these inputs

were available may be required.

(4) In addition to the provisions of section

11 (Insurance Period) of the Basic Provisions

(§ 457.8), the insurance period for prevented

planting coverage begins:

(i) On the sales closing date contained in

the Special Provisions for the insured crop in

the county for the crop year the application

for insurance is accepted; or

(ii) For any subsequent crop year, on the

sales closing date for the insured crop in the

county for the previous crop year, provided

continuous coverage has been in effect since

that date. For example, if you make

application and purchase insurance for rice

for the 1998 crop year, prevented planting

coverage will begin on the 1998 sales closing

date for rice in the county. If the rice

coverage remains in effect for the 1999 crop

year (is not terminated or canceled during or

after the 1998 crop year), prevented planting

coverage for the 1999 crop year began on the

1998 sales closing date. Cancellation for the

purpose of transferring the policy to a

different insurance provider when there is no

lapse in coverage will not be considered

terminated or canceled coverage for the

purpose of the preceding sentence.

(5) The acreage to which prevented

planting coverage applies will not exceed the

total eligible acreage on all FSA Farm Serial

Numbers in which you have a share, adjusted

for any reconstitution that may have occurred

on or before the sales closing date. Eligible

acreage for each FSA Farm Serial Number is

determined as follows:

(i) If you participate in any program

administered by the United States

Department of Agriculture that limits the

number of acres that may be planted for the

crop year, the acreage eligible for prevented

planting coverage will not exceed the total

acreage permitted to be planted to the

insured crop.

(ii) If you do not participate in any program

administered by the United States

Department of Agriculture that limits the

number of acres that may be planted, and

unless we agree in writing on or before the

sales closing date, eligible acreage will not

exceed the greater of:

(A) The FSA base acreage for the insured

crop, including acres that could be flexed

from another crop, if applicable;

(B) The number of acres planted to rice on

the FSA Farm Serial Number during the

previous crop year; or

(C) One-hundred percent of the simple

average of the number of acres planted to rice

during the crop years that you certified to

determine your yield.

(iii) A prevented planting production

guarantee will not be provided for any

acreage:

(A) That does not constitute at least 20

acres or twenty percent of the acreage in the

unit, whichever is less (Acreage that is less

than 20 acres or twenty percent of the acreage

in the unit will be presumed to have been

intended to be planted to the insured crop

planted in the unit, unless you can show that

you had the inputs available before the final

planting date to plant and produce another

insured crop on the acreage);

(B) For which the actuarial table does not

designate a premium rate unless a written

agreement designates such premium rate;

(C) Used for conservation purposes or

intended to be left unplanted under any

program administered by the United States

Department of Agriculture;

(D) On which another crop is prevented

from being planted, if you have already

received a prevented planting indemnity,

guarantee or amount of insurance for the

same acreage in the same crop year, unless

you provide adequate records of acreage and

production showing that the acreage was

double-cropped in each of the last 4 years in

which the insured crop was grown on the

acreage;

(E) On which the insured crop is prevented

from being planted, if any other crop is

planted and fails, or is planted and

harvested, hayed, or grazed on the same

acreage in the same crop year, (other than a

cover crop as specified in section

13(d)(2)(iii)(A), or a substitute crop allowed

in section 13(d)(2)(iii)(B), unless you provide

adequate records of acreage and production

showing that the acreage was double-cropped

in each of the last 4 years in which the

insured crop was grown on the acreage;

(F) When coverage is provided under the

Catastrophic Risk Protection Endorsement if

you plant another crop for harvest on any

acreage you were prevented from planting in

the same crop year, even if you have a history

of double-cropping. If you have a

Catastrophic Risk Protection Endorsement

and receive a prevented planting indemnity,

guarantee, or amount of insurance for a crop

and are prevented from planting another crop

on the same acreage, you may only receive

the prevented planting indemnity, guarantee,

or amount of insurance for the crop on which

the prevented planting indemnity, guarantee,

or amount of insurance is received; or

(G) For which planting history or

conservation plans indicate that the acreage

would have remained fallow for crop rotation

purposes.

(iv) For the purpose of determining eligible

acreage for prevented planting coverage,

acreage for all units will be combined and be

reduced by the number of rice acres timely

planted and late planted. For example,

assume you have 100 acres eligible for

prevented planting coverage in which you

have a 100 percent share. The acreage is

located in a single FSA Farm Serial Number

which you insure as two separate optional

units consisting of 50 acres each. If you

planted 60 acres of rice on one optional unit

and 40 acres rice on the second optional unit,

your prevented planting eligible acreage

would be reduced to zero (i.e., 100 acres

eligible for prevented planting coverage

minus 100 acres planted equals zero).

(6) In accordance with the provisions of

section 6 (Report of Acreage) of the Basic

Provisions (§ 457.8), you must report by unit

any insurable acreage that you were

prevented from planting. This report must be

submitted on or before the acreage reporting

date. For the purpose of determining acreage

eligible for a prevented planting production

guarantee, the total amount of prevented

planting and planted acres cannot exceed the

maximum number of acres eligible for

prevented planting coverage. Any acreage

you report in excess of the number of acres

eligible for prevented planting coverage, or

that exceeds the number of eligible acres

physically located in a unit, will be deleted

from your acreage report.
4200 Federal Register / Vol. 62, No. 19 / Wednesday, January 29, 1997 / Proposed Rules

14. Written Agreements

Designated terms of this policy may be

altered by written agreement in accordance

with the following:

(a) You must apply in writing for each

written agreement no later than the sales

closing date, except as provided in section

14(e);

(b) The application for a written agreement

must contain all variable terms of the

contract between you and us that will be in

effect if the written agreement is not

approved;

(c) If approved, the written agreement will

include all variable terms of the contract,

including, but not limited to, crop type or

variety, the guarantee, premium rate, and

price election;

(d) Each written agreement will be valid for

one year (If the written agreement is not

specifically renewed the following year,

insurance coverage for subsequent crop years

will be in accordance with the printed

policy); and

(e) An application for a written agreement

submitted after the sales closing date may be

approved if, after a physical inspection of the

acreage, it is determined that no loss has

occurred and the crop is insurable in

accordance with the policy and written

agreement provisions.

Signed in Washington, D.C., on January 21,

1997.

Kenneth D. Ackerman,

Manager, Federal Crop Insurance

Corporation.

[FR Doc. 97–2041 Filed 1–28–97; 8:45 am]

BILLING CODE BILLING CODE 3410–FA–P

DEPARTMENT OF ENERGY

Office of Energy Efficiency and

Renewable Energy

10 CFR Part 430

[Docket Numbers EE–RM–93–801 and EE–

RM–93–801–RAC]

Energy Conservation Program for

Consumer Products; Room Air

Conditioner Energy Conservation

Standards

AGENCY: Office of Energy Efficiency and

Renewable Energy, Energy Department.

ACTION: Notice of limited reopening of

the record and opportunity for public

comment.

SUMMARY: The Department of Energy

reopens the record of its rulemaking to

revise the room air conditioner energy

conservation standards under the

Energy Policy and Conservation Act.

Notice is given of revised draft reports

on the potential impact of alternative

efficiency levels, various written and

oral comments from industry

representatives and energy efficiency

advocates, new factual information, and

the principal policy options now under

consideration.

DATES: Comments must be received on

or before February 13, 1997.

ADDRESSES: Comments should be

addressed to Kathi Epping, U.S.

Department of Energy, Office of Energy

Efficiency and Renewable Energy,

Forrestal Building, Mail Station EE–43,

1000 Independence Avenue, S.W.,

Washington, D.C. 20585. A copy of the

revised draft Technical Support

Document and other post comment

period correspondence is available for

public inspection and copying at the

Freedom of Information Reading Room,

U.S. Department of Energy, Forrestal

Building, Room 1E–190, 1000

Independence Avenue, S.W.,

Washington, D.C. 20585, (202) 586–

7574, between the hours of 9:00 a.m.

and 4:00 p.m., Monday through Friday,

except Federal holidays. Copies of the

revised draft Technical Support

Document may be obtained from: U.S.

Department of Energy, Office of Energy

Efficiency and Renewable Energy,

Forrestal Building, Mail Station EE–43,

1000 Independence Avenue, S.W.,

Washington, D.C. 20585, (202) 586–

9127.

FOR FURTHER INFORMATION CONTACT:

Kathi Epping, U.S. Department of

Energy, Office of Energy Efficiency

and Renewable Energy, Forrestal

Building, Mail Station EE–43, 1000

Independence Avenue, S.W.,

Washington, D.C. 20585, (202 586–

7425, or

Eugene Margolis, Esq., U.S. Department

of Energy, Office of General Counsel,

Forrestal Building, Mail Station GC–

72, 1000 Independence Avenue, S.W.,

Washington, D.C. 20585, (202) 586–

9507.

SUPPLEMENTARY INFORMATION: Pursuant

to section 325 of the Energy Policy and

Conservation Act (EPCA), 42 U.S.C.

6295, the Department of Energy (DOE)

proposed to revise the energy

conservation standards applicable to

room air conditioners, as well as a

variety of other consumer products. 59

FR 10464 (March 4, 1994). Section

325(o)(2) requires that any amended

standard be designed to achieve the

maximum improvement in energy

efficiency that is technologically

feasible and economically justified. 42

U.S.C. 6295(o)(2).

DOE held public hearings and

received 12 comments on its proposed

revisions to the room air conditioner

energy conservation standards. After

reviewing the comments, DOE

concluded that a number of significant

issues had been raised that required

additional analysis. DOE also decided to

sever the rulemaking on room air

conditioners from the rulemakings for

the other consumer products covered by

the notice of proposed rulemaking.

On May 5, 1996, DOE distributed a

copy of the Draft Report on the Potential

Impact of Alternative Energy Efficiency

Levels for Room Air Conditioners (Draft

Report), containing DOE’s revised

analysis examining five alternative

efficiency levels, to a mailing list that

included all of the commenters on the

proposed rule on room air conditioners.

(EE–RM–93–801–RAC No. 1 and No. 2.)

The letter invited recipients to comment

on the Draft Report by no later than July

1, 1996. A copy of the cover letter and

the mailing list has been added to the

record on file for inspection in the DOE

Freedom of Information Reading Room.

On April 23, 1996, the American

Council for an Energy Efficient

Economy (ACEEE) and the Natural

Resources Defense Council (NRDC) sent

a letter to the Association of Home

Appliance Manufacturers (AHAM) with

the following table of proposed standard

levels:

Class Standard level

Units without reverse cycle

and with louvered sides.

Capacity less than

20,000 Btu/h.

10.0 EER.

Capacity 20,000 Btu/h

and more.

9.0 EER.

Units without reverse cycle

and without louvered sides.

9.0 EER.

Slider/casement and casement-only units.9.0 EER.

Units with reverse cycle, all

capacities.

0.5 EER less

than the

standard for

a comparable

cool-only

model.

At a May 21, 1996, meeting at which

representatives of ACEEE, AHAM, and

DOE were present, AHAM circulated a

handout including a variety of charts

that has been added to the record on file

for public inspection in the DOE

Freedom of Information Reading Room.

Attachment 3A of the handout was a

chart entitled ‘‘Life Cycle Cost and

Payback—Room Air Conditioners, Effect

of Allocating Cost of Chassis Size

Change.’’ (EE–RM–93–801–RAC No. 9 at

Attachment 3A.)

Between the beginning of June and

the end of November, 1996, DOE

received six comments on the Draft

Report or related issues. DOE officials

held meetings on September 26 with

representatives of AHAM and interested

manufacturers and on September 27

with ACEEE, the Alliance to Save