918 Federal Register / Vol. 62, No. 4 / Tuesday, January 7, 1997 / Rules and Regulations

have sufficient funds to pay its expenses

which are incurred on a continuous

basis; (2) the 1996–97 fiscal period

began on August 1, 1996, and the

marketing order requires that the rate of

assessment for each fiscal period apply

to all assessable onions handled during

such fiscal period; (3) handlers are

aware of this action which was

unanimously recommended by the

Committee at a public meeting and is

similar to other assessment rate actions

issued in past years; and (4) this interim

final rule provides a 30-day comment

period, and all comments timely

received will be considered prior to

finalization of this rule.

List of Subjects in 7 CFR Part 959

Marketing agreements, Onions,

Reporting and recordkeeping

requirements.

For the reasons set forth in the

preamble, 7 CFR part 959 is amended as

follows:

PART 959—ONIONS GROWN IN

SOUTH TEXAS

1. The authority citation for 7 CFR

part 959 continues to read as follows:

Authority: 7 U.S.C. 601–674.

2. A new subpart titled ‘‘Assessment

Rates’’ consisting of a new § 959.237

and a new subpart heading titled

‘‘Handling Regulations’’ are added

immediately preceding § 959.322, to

read as follows:

Note: This section will appear in the Code

of Federal Regulations.

Subpart—Assessment Rates

§ 959.237 Assessment rate.

On and after August 1, 1996, an

assessment rate of $0.07 per 50-pound

container or equivalent is established

for South Texas onions.

Subpart—Handling Regulations

* * * * *

Dated: December 31, 1996.

Robert C. Keeney,

Director, Fruit and Vegetable Division.

[FR Doc. 97–282 Filed 1–6– 97; 8:45 am]

BILLING CODE 3410–02–P

7 CFR Parts 1011 and 1046

[Docket No. DA–96–15]

Milk in the Tennessee Valley and

Louisville-Lexington-Evansville

Marketing Area

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Final rule, correction.

SUMMARY: The Agricultural Marketing

Service is correcting FR Doc. 96–33000,

published December 31, 1996,

pertaining to the termination of baseexcess payment plan provisions

contained in five Federal milk

marketing orders.

EFFECTIVE DATE: January 1, 1997.

FOR FURTHER INFORMATION CONTACT:

Nicholas Memoli, Marketing Specialist,

USDA/AMS/Dairy Division, Order

Formulation Branch, Washington, DC

20090–6456, (202) 690–1932.

SUPPLEMENTARY INFORMATION: The final

rule that is the subject of this correction

inadvertently omitted regulatory

language terminating the base-excess

payment plan provisions of five Federal

milk marketing orders.

Need for Correction

As published, the final rule contains

errors in amendatory instructions 24

and 32 which may prove to be

misleading and are in need of

clarification.

Correction of Publication

Accordingly, amendatory instructions

24 and 32, respectively, as published on

December 31, 1996 (61 FR 69018), are

corrected as follows:

§ 1011.61 [Corrected]

24. In § 1011.61, paragraph (a)

introductory text is amended by

removing the words ‘‘of July through

February’’, paragraph (a)(6) is amended

by removing the words ‘‘for the months

of July through February’’, paragraph (b)

is removed, and the section heading is

revised as follows:

§ 1046.61 [Corrected]

32. In § 1046.61, paragraph (a)

introductory text is amended by

removing the words ‘‘of July through

February’’, paragraph (a)(6) is amended

by removing the words ‘‘for the months

of July through February’’, paragraph (b)

is removed, and the section heading is

revised to read as follows:

Dated: December 30, 1996.

Richard M. McKee,

Director, Dairy Division.

[FR Doc. 97–280 Filed 1–6–97; 8:45 am]

BILLING CODE 3410–02–M

7 CFR Part 1079

[DA–96–16]

Milk in the Iowa Marketing Area;

Temporary Revision of Rule

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Final rule.

SUMMARY: This document revises certain

provisions of the Iowa Federal milk

marketing order for the months of

December 1996 through March 1997.

This action decreases the percentage of

a supply plant’s receipts that must be

delivered to fluid milk plants to qualify

a supply plant for pooling under the

Iowa Federal milk order. The applicable

percentage will be decreased 10

percentage points, from 30 percent to 20

percent, for the months of December

1996 through March 1997. The revision

is being made in response to a request

by a pool supply plant that is regulated

under the Iowa order. This action is

necessary to prevent the uneconomic

shipment of milk.

EFFECTIVE DATES: Amendment 1 is

effective January 8, 1997. Amendment 2

is effective December 1, 1996, through

March 31, 1997.

FOR FURTHER INFORMATION CONTACT:

Nicholas Memoli, Marketing Specialist,

USDA/AMS/Division, Order

Formulation Branch, Room 2971, South

Building, P.O. Box 96456, Washington,

DC 20090–6456, (202) 690–1932, e-mail

address

NicholaslXlMemoli@usda.gov.

SUPPLEMENTARY INFORMATION: Prior

document in this proceeding:

Notice of Proposed Temporary

Revision: Issued December 6, 1996;

published December 12, 1996 (61 FR

65366).

The Department is issuing this final

rule in conformance with Executive

Order 12866.

This final rule has been reviewed

under Executive Order 12988, Civil

Justice Reform. This rule is not intended

to have a retroactive effect. This rule

will not preempt any state or local laws,

regulations, or policies, unless they

present an irreconcilable conflict with

this rule.

The Agricultural Marketing

Agreement Act of 1937 (the ‘‘Act’’), as

amended (7 U.S.C. 601–674), provides

that administrative proceedings must be

exhausted before parties may file suit in

court. Under section 608c(15)(A) of the

Act, any handler subject to an order may

request modification or exemption from

such order by filing with the Secretary

a petition stating that the order, any

provision of the order, or any obligation

imposed in connection with the order is

not in accordance with the law. A

handler is afforded the opportunity for

a hearing on the petition. After a

hearing, the Secretary would rule on the

petition. The Act provides that the

district court of the United States in any

district in which the handler is an

inhabitant, or has its principal place of

business, has jurisdiction in equity to
Federal Register / Vol. 62, No. 4 / Tuesday, January 7, 1997 / Rules and Regulations 919

review the Secretary’s ruling on the

petition, provided a bill in equity is

filed not later than 20 days after the date

of the entry of the ruling.

Small Business Consideration

In accordance with the Regulatory

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

amended, the Agricultural Marketing

Service has considered the economic

impact of this action on small entities

and has certified that this rule will not

have a significant economic impact on

a substantial number of small entities.

For the purpose of the Regulatory

Flexibility Act, a dairy farm is

considered a ‘‘small business’’ if it has

an annual gross revenue of less than

$500,000, and a dairy products

manufacturer is a ‘‘small business’’ if it

has fewer than 500 employees. For the

purposes of determining which dairy

farms are ‘‘small businesses,’’ the

$500,000 per year criterion was used to

establish a production guideline of

326,000 pounds per month. Although

this guideline does not factor in

additional monies that may be received

by dairy producers, it should be an

inclusive standard for most ‘‘small’’

dairy farmers. For purposes of

determining a handler’s size, if the plant

is part of a larger company operating

multiple plants that collectively exceed

the 500-employee limit, the plant will

be considered a large business even if

the local plant has fewer than 500

employees. This rule lessens the

regulatory impact of the order on certain

milk handlers and tends to ensure that

dairy farmers will continue to have their

milk priced under the order and thereby

receive the benefits that accrue from

such pricing.

The revised supply plant shipping

percentages are incorporated into the

order to prevent the uneconomic

shipment of milk. This action will

decrease the percentage of milk receipts

that handlers are required to move to

fluid milk distributing plants. With a

decrease in the shipping percentage,

supply plant operators will not have to

move milk uneconomically to pool

distributing plants to keep the milk

received at their plants priced under the

order.

The reduction of the required supply

plant shipping percentage for the

months of December 1996 through

March 1997 would allow the milk of

producers traditionally associated with

the Iowa market to continue to be

pooled and priced under the order. The

revision would lessen the likelihood

that more milk shipments to pool plants

might be required under the order than

are actually needed to supply the fluid

milk needs of the market and would

result in savings in hauling costs for

handlers and producers.

This temporary revision is issued

pursuant to the provisions of the

Agricultural Marketing Agreement Act

and the provisions of § 1079.7(b)(1) of

the Iowa order.

Issuance of Notice of Proposed Revision

Notice of proposed rulemaking was

issued concerning a proposed reduction

in the percentage of a supply plant’s

receipts which must be delivered to

fluid milk plants to qualify a supply

plant for pooling under the Iowa order.

The revisions were proposed to be

effective for the months of December 1,

1996, through March 31, 1997. The

public was afforded the opportunity to

comment on the proposed notice by

submitting written data, views and

arguments by December 19, 1996.

Two comments were received. One

comment supported the recommended

reduction, while the other comment

supported a reduction with

modification.

Statement of Consideration

After consideration of all relevant

material, including the proposed set

forth in the aforesaid notice, and other

available information, it is hereby found

and determined that the supply plant

shipping percentage set forth in

§ 1079.7(b) of the Iowa Federal milk

order should be decreased 10 percentage

points, from 30 percent to 20 percent,

for the months of December 1996

through March 1997.

Beatrice Cheese, Inc., a supply plant

regulated under the Iowa order,

proposed decreasing the supply plant

shipping percentage by 10 percentage

points, from 35 percent of plant receipts

to 25 percent of such receipts, for the

month of November 1996, and from 30

percent to 20 percent for the months of

December 1996 through March 1997.

The proponent contends that the

decrease is necessary to prevent the

uneconomic shipment of milk.

According to Beatrice, the

Department’s October 23, 1996, decision

increasing the shipping percentage

requirements to 35 percent for the

months of September through November

beginning with October 1996, and to 30

percent for the months of December

through March has caused unjust

financial losses and the uneconomic

shipment of milk to occur. In order to

comply with Federal order

requirements, Beatrice states that a

significant amount of milk was unable

to be pooled to the detriment of Iowa’s

dairy farmers. Additionally, proponent

claims that market conditions have

changed drastically in Iowa since

October 1996 due to a drop in the

cheese and butter markets which has

made more than enough milk available

for fluid use eliminating the need for

increased shipping percentages.

While Beatrice’s proposal included a

temporary revision of the supply plant

shipping percentage requirements for

November 1996, the proposed revision

issued December 6, 1996, requesting

comments limited the revision period to

December 1996 through March 1997.

The inclusion of November 1996 was

impractical and infeasible given the

amount of time necessary for required

procedures, including a comment

period.

Wapsie Valley Creamery, a supply

plant regulated under Order 79,

submitted a comment in support of a

reduction in the supply plant shipping

requirement by 10 percentage points for

the months of December 1996 through

March 1997. Wapsie states that milk

marketing conditions have changed

since October 1996, and that due to the

increased shipping requirements

recently put into effect, it has been

forced to make uneconomic shipments

of milk to meet order regulations.

Anderson Erickson Dairy Co. (A–E), a

proprietary distributing plant regulated

under the Iowa order, submitted a

comment supporting a reduction in the

supply plant shipping percentage

requirements for the Iowa order, but

argues that the decrease should be

limited to 5 percentage points, from 30

percent to 25 percent, for the months of

December 1996 through March 1997. A–

E contends that, given past experiences

which have caused A–E to request

increased shipping percentages due to a

lack of available milk supplies for the

fluid market, the percentage should be

reduced only 5 percentage points from

the current level. A–E also states that

under no circumstances should the

shipping requirements for September

through December of future years be

reduced.

At the time of A–E’s previous request

to have the shipping percentages

increased, the Department had found

that in the Iowa marketing area the

percentage of pooled milk used in Class

I had noticeably increased for the

months of June through August 1996 as

compared to earlier years. This situation

indicated the need for shipping

percentage increases in order to attract

an adequate supply of milk for fluid use.

However, Class I utilization for the

month of October 1996 in the Iowa

marketing area illustrates that there is

no need to maintain the shipping

percentages at the current level of 30

percent. The Class I utilization for the

months of October and November 1996
920 Federal Register / Vol. 62, No. 4 / Tuesday, January 7, 1997 / Rules and Regulations

(33.8% and 32.7%, respectively) has

decreased as compared to October and

November 1995 (49.6% and 36.1%,

respectively). A decrease in Class I

utilization is also apparent for the

January through March 1996 period as

compared to the same months of 1995.

Class I utilization declined from 34.7

percent for January 1995 to 32.1 percent

in January 1996, 35.7 percent to 33.1

percent for the month of February, and

from 34.2 percent to 31.7 percent for

March of such years. This suggests that

sufficient supplies of milk for fluid use

should be available during the months

of December 1996 through March 1997

for Iowa order distributing plants.

Therefore, a decrease in the shipping

requirement is warranted. By reducing

the shipping requirement percentage for

the December 1996 through March 1997

period to 20 percent, a reasonable

balance will be reached which will

prevent uneconomic shipments from

occurring, as well as assure a sufficient

milk supply.

It is hereby found and determined

that 30 days’ notice of the effective date

hereof is impractical, unnecessary, and

contrary to the public interest in that:

(a) This temporary revision is

necessary to reflect current marketing

conditions and to maintain orderly

marketing conditions in the marketing

area for the months of December 1996

through March 1997;

(b) This temporary revision does not

require of persons affected substantial or

extensive preparation prior to the

effective date; and

(c) Notice of the proposed temporary

revision was given interested parties

and they were afforded opportunity to

file written data, views, or arguments

concerning this temporary revision.

Therefore, good cause exists for

making this temporary revision effective

less than 30 days from the days from the

date of issuance.

List of Subject in 7 CFR Part 1079

Milk marketing orders.

For the reasons set forth in the

preamble, 7 CFR Part 1079 is amended

as follows:

PART 1079—MILK IN THE IOWA

MARKETING AREA

1. The authority for 7 CFR Part 1079

continues to read as follows:

Authority: 7 U.S.C. 601-674.

§ 1079.7 [Amended]

2. In § 1079.7(b), the introductory text

is amended by revising the words ‘‘30

percent’’ to read ‘‘20 percent’’ effective

December 1, 1996, through March 31,

1997.

Dated: December 31, 1996.

Richard M. McKee,

Director, Dairy Division.

[FR Doc. 97–278 Filed 1–6–97; 8:45 am]

BILLING CODE 3410–02–P

TENNESSEE VALLEY AUTHORITY

18 CFR Part 1314

Book-Entry Procedures for TVA Power

Securities Issued Through the Federal

Reserve Banks

AGENCY: Tennessee Valley Authority

(TVA).

ACTION: Final rule.

SUMMARY: This final rule revises the

procedures governing the issuance of,

and transactions in, all TVA Power

Securities issued in book-entry form

through the Federal Reserve Banks.

These revisions incorporate recent

changes in commercial and property

law and bring TVA’s book-entry

procedures into accord with the revised

book-entry procedures of the United

States Department of Treasury.

EFFECTIVE DATE: January 7, 1997.

FOR FURTHER INFORMATION CONTACT:

Edward S. Christenbury at (423) 632–

2241.

SUPPLEMENTARY INFORMATION: TVA, a

wholly owned corporate agency and

instrumentality of the United States, is

authorized to issue bonds, notes, and

other evidences of indebtedness to assist

its power program. Many TVA Power

Securities are available exclusively in

book-entry form and are thus subject to

TVA’s book-entry procedures. This final

rule revises TVA’s book-entry

procedures to incorporate recent

changes in commercial and property

law and to bring them into accord with

the revised book-entry procedures of the

United States Department of Treasury

published in the Federal Register on

August 23, 1996 (61 FR 43,626).

Because the revised Treasury

Regulations become effective on January

1, 1997, it is in the public interest that

this final rule become effective as close

to this date as possible to facilitate

TVA’s performance of its

responsibilities under Section 15d and

other sections of the TVA Act, 16 U.S.C.

831–831dd. The notice, public

comment, and delayed effective date are

therefore contrary to the public interest

and inapplicable to this final rule.

List of Subjects in 18 CFR Part 1314

Accounting, Bonds, Brokers, Federal

Reserve System, Reporting and

recordkeeping requirements, Securities.

For the reasons set forth in the

preamble, part 1314 of chapter XIII of

title 18 of the Code of Federal

Regulations is revised to read as follows:

PART 1314—BOOK-ENTRY

PROCEDURES FOR TVA POWER

SECURITIES ISSUED THROUGH THE

FEDERAL RESERVE BANKS

Sec.

1314.1 Applicability and effect.

1314.2 Definition of terms.

1314.3 Authority of Reserve Banks.

1314.4 Law governing the rights and

obligations of TVA and Reserve Banks;

law governing the rights of any Person

against TVA and Reserve Banks; law

governing other interests.

1314.5 Creation of Participant’s Security

Entitlement; security interests.

1314.6 Obligations of TVA.

1314.7 Liability of TVA and Reserve Banks.

1314.8 Identification of accounts.

1314.9 Waiver of regulations.

1314.10 Additional provisions.

Authority: 16 U.S.C. 831–831dd.

§ 1314.1 Applicability and effect.

(a) Applicability. The regulations in

this part govern the issuance of, and

transactions in, all TVA Power

Securities issued by TVA in book-entry

form through the Reserve Banks.

(b) Effect. The TVA Power Securities

to which the regulations in this part

apply are obligations which, by the

terms of their issue, are available

exclusively in book-entry form through

the Reserve Banks’ Book-entry System.

§ 1314.2 Definition of terms.

Unless the context requires otherwise,

terms used in this part 1314 that are not

defined in this section have the

meanings as set forth in 31 CFR 357.2.

Definitions and terms used in 31 CFR

part 357 should be read as though

modified to effectuate their application

to Book-entry TVA Power Securities

where applicable.

Book-entry System means the

automated book-entry system operated

by the Reserve Banks acting as the fiscal

agent for TVA on which Book-entry

TVA Power Securities are issued,

recorded, transferred, and maintained in

book-entry form.

(b) Book-entry TVA Power Security

means any TVA Power Security issued

or maintained in the Book-entry System

of the Reserve Banks.

(c) CUSIP Number is a unique

identification for each security issue

established by the Committee on

Uniform Security Identification

Procedures.

(d) Depository Institution means any

Participant.

(e) Entitlement Holder means a Person

to whose account an interest in a Book-