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contains regulatory documents having general

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Rules and Regulations Federal Register

41963 

Vol. 75, No. 138 

Tuesday, July 20, 2010 

DEPARTMENT OF AGRICULTURE 

Commodity Credit Corporation 

7 CFR Part 1413 

RIN 0560–AH72 

Wheat and Oilseed Programs; Durum 

Wheat Quality Program 

AGENCY: Farm Service Agency and 

Commodity Credit Corporation, USDA. 

ACTION: Final rule. 

SUMMARY: This rule implements specific 

requirements for the Durum Wheat 

Quality Program (DWQP) authorized by 

the Food, Conservation, and Energy Act 

of 2008 (the 2008 Farm Bill). The 2008 

Farm Bill authorizes the DWQP for 

fiscal years 2009 through 2012 to 

partially compensate producers for the 

cost of fungicides applied to durum 

wheat to control Fusarium head blight, 

commonly known as wheat scab. 

DATES: Effective Date: July 20, 2010. 

FOR FURTHER INFORMATION CONTACT: 

Candace Thompson, Director, 

Production, Emergencies, and 

Compliance Division; Farm Service 

Agency (FSA); U.S. Department of 

Agriculture (USDA), Mail Stop 0517, 

1400 Independence Avenue, SW., 

Washington, DC 20250–0517; telephone 

(202) 720–3463; e-mail to: 

candy.thompson@wdc.usda.gov. 

Persons with disabilities who require 

alternative means for communication 

(Braille, large print, audiotape, etc.) 

should contact the USDA Target Center 

at 202–720–2600 (voice and TDD). 

SUPPLEMENTARY INFORMATION: 

Background 

Section 1613 of the 2008 Farm Bill 

(Pub. L. 110–246) authorizes the 

Secretary of Agriculture to compensate 

producers of durum wheat for up to 50 

percent of the actual cost of fungicide 

applied to control Fusarium head blight, 

a wheat disease caused by the Fusarium 

genus of fungi. 

The 2008 Farm Bill authorizes annual 

appropriations for DWQP. The 

Agriculture, Rural Development, Food 

and Drug Administration, and Related 

Agencies Appropriations Act, 2010 

(2010 Agriculture Appropriations Bill, 

Pub. L. 111–80) provides $3 million for 

this program in fiscal year 2010. This 

rule implements specific requirements 

for the DWQP in 7 CFR part 1413. 

DWQP is a Commodity Credit 

Corporation (CCC) program that will be 

administered by FSA. 

The basic eligibility requirements, 

authorized funding limit, and 

compensation rates for this program are 

specified in the 2008 Farm Bill. The 

details in this rule on eligible 

fungicides, the application process, and 

acceptable documentation of the 

producer’s actual cost are discretionary 

provisions. 

Applying for DWQP Payments; DWQP 

Payment Calculation 

Producers must file a completed 

application in the FSA county office 

during the application period 

announced by the Deputy 

Administrator. To be eligible, a 

producer must have used an eligible 

fungicide to control Fusarium head 

blight on acres certified as planted to 

durum wheat. This rule specifies that 

producers must provide documentation 

to show: 

• The total number and location of 

acres planted to durum wheat to which 

an eligible fungicide was applied to 

control Fusarium head blight, and 

• The actual cost of the eligible 

fungicide. 

This rule specifies that producers 

must certify the dates: 

• Durum wheat was planted, and 

• Eligible fungicide was applied to 

durum wheat to control Fusarium head 

blight. 

Payments to eligible producers will be 

based on 50 percent of their actual cost 

for eligible fungicide or a per-acre 

national fungicide acquisition payment 

rate set by the FSA Deputy 

Administrator, whichever is lower, plus 

a per-acre State application payment 

rate, as set by the State committee. The 

fungicide acquisition payment rate set 

by the Deputy Administrator will be 

based on 50 percent of the national 

average cost of an eligible fungicide 

applied per acre of durum wheat, for the 

applicable crop year. The application 

payment rate set by the State committee 

will be based on 50 percent of the 

State’s average cost to apply an eligible 

fungicide per acre of durum wheat, for 

the applicable crop year. If eligible 

applications exceed the available 

funding, FSA plans to prorate the 

available funds by a national factor to 

reduce the total expected payments to 

the amount available for the crop year. 

The 50 percent of actual cost limit on 

the payment rate is specified in the 2008 

Farm Bill. 

Producers may treat the crop with 

eligible fungicides more than once 

during the crop year, but only one such 

treatment per year during the flowering 

stage will be eligible for DWQP 

payment. CCC will collect data on 

reasonable per acre usage and 

application rates for a single treatment 

of fungicide, and will take that into 

consideration when calculating the 

national fungicide payment rate. As 

noted above, the payments will be 50 

percent of actual cost or the payment 

rate, whichever is lower. 

To be considered an eligible fungicide 

for DWQP, the fungicide must have 

been registered with the Environmental 

Protection Agency (EPA) and be 

compliant with State pesticide 

regulations in the State in which 

benefits are being requested. 

Information on eligible pesticides in a 

State is available on State 

environmental Web sites. The EPA 

maintains State Resource Locators and 

contact information for State pesticide 

programs at http://www.epa.gov/ 

pesticides/safety/applicators/ 

statepro.htm. 

CCC will announce the period for 

submitting payment applications under 

this program. The program application 

period for a crop year will end 

September 15 of that crop year. During 

the application period, durum wheat 

producers may apply in person at FSA 

county offices during regular business 

hours. Applications may also be 

submitted by mail or fax. Program 

applications may be obtained in person, 

by mail, telephone, or fax from any FSA 

county office or via the Internet at 

http://forms.sc.egov.usda.gov/eForms. 

Any application received after 

September 15 of the applicable crop 

year will not receive consideration and 


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producers on that application will be 

ineligible for payment. 

The application period for the 2010 

crop year will end September 15, 2010. 

An annual deadline for applications is 

necessary because CCC must know the 

total value of requested payments in 

order to determine if payments will 

exceed the available funding for that 

year. We anticipate that for FY 2010, 

payment applications may exceed the 

available $3 million in appropriated 

funding and we will need to prorate the 

payments. This program is funded by 

annual appropriations, so in future 

years there may be more or less funding 

for this program than is available for FY 

2010. No funding was appropriated for 

this program in FY 2009, so there was 

no application period in 2009, and 

subsequently no available payments. 

Application periods for subsequent 

years will be announced as funding 

becomes available. The application 

periods are expected to be typically at 

least 60 days, and never, it is 

anticipated, less than 30 days, as 

determined by the Deputy 

Administrator, subject to when the 

appropriations become available, and 

will always end on September 15 of the 

applicable year. 

CCC will establish a reserve fund for 

errors and appeals. These reserve funds 

are only intended for corrections and 

payments for disapproved applications 

that are successfully appealed, and not 

for late-filed applications. 

2008 Farm Bill provisions that 

mandate an eligibility limit that 

prevents payments for persons with an 

average adjusted gross income (AGI) 

limitation above certain amounts 

(depending on the program) do not 

apply to this program and no such test 

will be applied. 

Miscellaneous DWQP Provisions 

All producers must meet the 

eligibility and documentation 

requirements provided in this rule. 

False certifications carry serious 

consequences. CCC will validate 

applications with random compliance 

spot-checks. 

Producers receiving DWQP payments 

must keep records and supporting 

documentation for 3 years following the 

end of the year in which the application 

for payment was filed. The discretionary 

recordkeeping requirement is consistent 

with other FSA and CCC rules and 

programs. Payments will only be made 

for one fungicide treatment as one 

treatment should suffice and will allow 

for equal treatment of producers 

consistent with the spirit and letter of 

the 2008 Farm Bill. 

DWQP producers must have been in 

compliance with the regulations at 7 

CFR part 12, ‘‘Highly Erodible Land and 

Wetland Conservation,’’ during the year 

for which the person is requesting 

benefits. Those regulations provide for a 

denial of benefits for failing to comply 

with general requirements regarding the 

handling of highly erodible cropland 

and wetlands. 

Appeal regulations in 7 CFR parts 11 

and 780 apply and under those rules it 

is the program agency’s view and 

position that appeals are not allowed for 

matters of general applicability rather 

than factual determination and under 

that view producers would not be able 

to appeal CCC determinations that are 

not limited to particular disputes for a 

particular producer or producers but are 

matters of policy. These include, but are 

not limited to, general regulatory 

provisions that apply to similarly 

situated producers. 

This Rule and Related Programs 

This rule adds a new part 1413, 

‘‘Commodity Incentive Payment 

Programs,’’ to Title 7 of the Code of 

Federal Regulations (CFR). This new 

part will include regulations for DWQP 

and two other commodity incentive 

programs authorized by the 2008 Farm 

Bill. Subpart A of the new part 1413, 

which is added with this rule, specifies 

provisions for DWQP. Subparts B and C 

will be added later when the hard white 

wheat and oilseed incentives programs 

specified in sections 1605 and 1612 of 

the 2008 Farm Bill are funded and 

implemented. 

Notice and Comment 

These regulations are exempt from the 

notice and comment requirements of the 

Administrative Procedures Act (5 U.S.C. 

553), as specified in section 1601(c) of 

the 2008 Farm Bill, which requires that 

the regulations be promulgated and 

administered without regard to the 

notice and comment provisions of 

Section 553 of title 5, United States 

Code or to the Statement of Policy of the 

Secretary effective July 24, 1971 (36 FR 

13804) relating to notices of proposed 

rulemaking and public participation in 

rulemaking. 

Executive Order 12866 

This final rule has been designated as 

not significant under Executive Order 

12866 and has not been reviewed by the 

Office of Management and Budget. The 

cost benefit analysis is summarized 

below and is available from the contact 

information listed above. 

Summary of Economic Impacts 

DWQP is funded by annual 

appropriations. The appropriated 

funding for FY 2010 is $3 million, 

which is the expected maximum cost of 

this program for FY 2010. The cost of 

this program, and benefit to producers, 

will depend upon how many producers 

apply for the program, but will in no 

case exceed appropriated funding. 

Program participation levels will likely 

increase if weather conditions warrant 

the application of fungicide to eligible 

crops. Costs and benefits for FY 2010 

are expected to range between $500,000 

and $3 million. In FY 2011–2012, costs 

and benefits could be as much as $10 

million per year, the maximum 

authorized for appropriations, but are 

expected to average under $1.5 million, 

based on historical data of fungicide 

usage. Most of the program participants 

who will receive the benefits are 

expected to be durum wheat producers 

in Montana and North Dakota. 

Regulatory Flexibility Act 

This rule is not subject to the 

Regulatory Flexibility Act since CCC is 

not required to publish a notice of 

proposed rulemaking for this rule. 

Environmental Evaluation 

The environmental impacts of this 

rule have been considered in a manner 

consistent with the provisions of the 

National Environmental Policy Act 

(NEPA, 42 U.S.C. 4321–4347), the 

regulations of the Council on 

Environmental Quality (40 CFR parts 

1500–1508), and FSA regulations for 

compliance with NEPA (7 CFR part 

799). The changes to the Wheat and 

Oilseed Programs and Durum Wheat 

Quality Program required by the 2008 

Farm Bill that are identified in this final 

rule are actions that do not require an 

assessment or an EIS (7 CFR 

799.10(b)(2)(x)). Therefore, FSA will not 

prepare an environmental assessment or 

an environmental impact statement. 

Executive Order 12372 

This program is not subject to 

Executive Order 12372, which requires 

consultation with State and local 

officials. See the notice related to 7 CFR 

part 3015, subpart V, published in the 

Federal Register on June 24, 1983 (48 

FR 29115). 

Executive Order 12988 

This rule has been reviewed under 

Executive Order 12988. This final rule 

is not retroactive and it does not 

preempt State or local laws, regulations, 

or policies unless they present an 

irreconcilable conflict with this rule. 

Before any judicial action may be 


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brought regarding the provisions of this 

rule the administrative appeal 

provisions of 7 CFR parts 11 and 780 

must be exhausted. 

Executive Order 13132 

The policies contained in this rule do 

not have any substantial direct effect on 

States, on the relationship between the 

Federal government and the States, or 

on the distribution of power and 

responsibilities among the various 

levels of government. Nor does this rule 

impose substantial direct compliance 

costs on State and local governments. 

Therefore, consultation with the States 

is not required. 

Executive Order 13175 

The policies contained in this rule do 

not have Tribal implications that 

preempt Tribal law. 

Unfunded Mandates 

This rule contains no Federal 

mandates under the regulatory 

provisions of Title II of the Unfunded 

Mandates Reform Act of 1995 (UMRA) 

for State, local, or Tribal governments, 

or the private sector. In addition, CCC 

is not required to publish a notice of 

proposed rulemaking for this rule. 

Therefore, this rule is not subject to the 

requirements of sections 202 and 205 of 

UMRA. 

Federal Domestic Assistance Program 

The title and number of the Federal 

Domestic Assistance Program, as found 

in the Catalog of Federal Domestic 

Assistance, to which this rule applies, is 

the Durum Wheat Quality Program— 

10.095. 

Paperwork Reduction Act 

These regulations are exempt from the 

requirements of the Paperwork 

Reduction Act (44 U.S.C. Chapter 35), as 

specified in section 1601(c)(2)(a) of the 

2008 Farm Bill, which provides that 

these regulations, which are necessary 

to implement title I of the 2008 Farm 

Bill, be promulgated and administered 

without regard to the Paperwork 

Reduction Act. 

E-Government Act Compliance 

CCC is committed to complying with 

the E-Government Act, to promote the 

use of the Internet and other 

information technologies to provide 

increased opportunities for citizen 

access to Government information and 

services, and for other purposes. 

List of Subjects in 7 CFR Part 1413 

Agricultural commodities, Oilseeds, 

Reporting and recordkeeping 

requirements, Wheat. 

■ For the reasons explained above, CCC 

adds 7 CFR part 1413 to read as follows: 

PART 1413—COMMODITY INCENTIVE 

PAYMENT PROGRAMS 

Authority: 7 U.S.C. 8788 and 15 U.S.C. 

714. 

Subpart A—Durum Wheat Quality Program 

Sec. 

1413.101 Applicability. 

1413.102 Definitions. 

1413.103 Administration. 

1413.104 Eligibility. 

1413.105 [Reserved] 

1413.106 Application process. 

1413.107 Availability of funds. 

1413.108 Payment calculation. 

1413.109 Refunds, joint and several 

liability. 

1413.110 Misrepresentation and scheme or 

device. 

1413.111 Miscellaneous provisions. 

1413.112 Appeals. 

1413.113 Deceased individuals or 

dissolved entities. 

1413.114 Records and inspections. 

Subpart B [Reserved] 

Subpart C [Reserved] 

Subpart A—Durum Wheat Quality 

Program 

§ 1413.101 Applicability. 

(a) This subpart establishes the terms 

and conditions under which the Durum 

Wheat Quality Program (DWQP) as 

authorized by section 1613 of the Food, 

Conservation, and Energy Act of 2008 

(Pub. L. 110–246) will be administered. 

(b) This program will operate only to 

the extent appropriated funding is 

available. 

(c) Subject to available funding, 

eligible producers of durum wheat will 

be partially compensated for the cost of 

purchasing and applying fungicides to a 

crop of durum wheat to control 

Fusarium head blight on acres 

accurately certified as planted to durum 

wheat. ‘‘Available funding’’ requires that 

there be a specific appropriation for the 

program that applies to a particular crop 

for which the producer seeks 

compensation under this program. 

§ 1413.102 Definitions. 

The following definitions apply to 

this subpart. The definitions in parts 

718 and 1400 of this title also apply, 

except where they conflict with the 

definitions in this section. 

Application period means the dates 

established by the Deputy Administrator 

for Farm Programs for producers to 

apply for program benefits. 

CCC means the Commodity Credit 

Corporation. 

Crop year means the calendar year in 

which the wheat was harvested or 

intended to be harvested. For example, 

a reference to the 2010 crop year of 

wheat means wheat that when planted 

was intended for harvest in calendar 

year 2010. 

Durum wheat means all varieties of 

white (amber) durum wheat as defined 

in the U.S. Standards for Wheat (7 CFR 

part 810, subpart M) including, but not 

limited to, hard amber durum wheat 

and amber durum wheat. 

Flowering stage means the period of 

time during the wheat growth stage, 

after the head emergence has completed 

and prior to milk development in the 

kernel. 

State committee, county committee or 

county office means the respective FSA 

committee or office. 

United States means all 50 States of 

the United States, the District of 

Columbia, the Commonwealth of Puerto 

Rico, and any other territory or 

possession of the United States. 

USDA means the United States 

Department of Agriculture. 

§ 1413.103 Administration. 

(a) DWQP will be administered under 

the general supervision of the Executive 

Vice President, CCC (Administrator, 

Farm Service Agency (FSA)), or a 

designee, and will be carried out in the 

field by FSA State and county 

committees and FSA employees. 

(b) FSA representatives do not have 

authority to modify or waive any of the 

provisions of the regulations of this 

subpart, except as specified in 

paragraph (e) of this section. 

(c) The State FSA committee will take 

any action required by the provisions of 

this subpart that the county FSA 

committee has not taken. The State FSA 

committee will also: 

(1) Correct, or require a county FSA 

committee to correct, any action taken 

by such county FSA committee that is 

not in compliance with the provisions 

of this subpart. 

(2) Require a county FSA committee 

to not take an action that is not in 

compliance with the provisions of this 

subpart. 

(d) No provision or delegation to a 

State or county FSA committee will 

preclude the Administrator, Deputy 

Administrator, or a designee from 

determining any question arising under 

the program in this subpart, or from 

reversing or modifying any 

determination made by a State or county 

FSA committee. 

(e) The Deputy Administrator may 

authorize State and county FSA 

committees to waive or modify nonstatutory program requirements of this 

subpart in cases where failure to meet 

such requirements does not adversely 


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affect operation of the program in this 

subpart. Producers have no right to seek 

an exception under this provision. The 

Deputy Administrator’s refusal to 

consider cases or circumstances or 

decision not to exercise this 

discretionary authority under this 

provision will not be considered an 

adverse decision and is not appealable. 

§ 1413.104 Eligibility. 

(a) To be considered eligible for 

DWQP payments, the person or entity 

must have a share in the treated wheat 

crop on those acres planted to durum 

wheat on which an eligible fungicide 

was applied, as certified on the 

application, have incurred the cost of 

acquiring and applying eligible 

fungicide, and meet the requirements in 

paragraph (b) of this section. 

(b) To be eligible for benefits, a person 

or entity must be a: 

(1) Citizen of the United States; 

(2) ‘‘Lawful alien’’ as defined in 

§ 1400.3 of this chapter; 

(3) Partnership of citizens of the 

United States; or 

(4) Corporation, limited liability 

corporation, or other farm 

organizational structure organized 

under State law. 

(c) A minor child is eligible to apply 

for DWQP payments if all the eligibility 

requirements of this subpart are met and 

the requirements in part 1400 of this 

chapter that apply to minor children are 

met. 

(d) A person or entity determined to 

be a foreign person under part 1400 of 

this title is not eligible to receive 

benefits under this subpart, unless that 

person provides land, capital, and a 

substantial amount of active personal 

labor in the production of crops on such 

farm. 

(e) State and local governments and 

their political subdivisions and related 

agencies are not eligible for DWQP 

payments. 

(f) To be considered an eligible 

fungicide under this subpart, the 

fungicide must be: 

(1) Registered with the U.S. 

Environmental Protection Agency, as 

required under the Federal Insecticide, 

Fungicide, and Rodenticide Act 

(FIFRA), unless exempt from FIFRA 

requirements; 

(2) In compliance with State pesticide 

regulations, if applicable, in the State in 

which benefits are being requested; and 

(3) Applied specifically to control 

Fusarium head blight on acres certified 

as planted by the producer to durum 

wheat for the applicable crop year. 

(g) CCC will provide program benefits 

to reimburse eligible costs for a 

maximum of one fungicide treatment, 

including application cost, during the 

flowering stage, to a crop of durum 

wheat per crop year. Multiple or 

additional fungicide treatments, beyond 

a single treatment, to the same crop of 

wheat are not eligible for benefits. 

§ 1413.105 [Reserved] 

§ 1413.106 Application process. 

(a) To apply for DWQP payment, the 

producer must submit, to the FSA 

county office that maintains the 

producer’s farm records for the 

agricultural operation, a completed 

application as specified in paragraph (c) 

of this section, including any supporting 

documentation required by FSA, and a 

report of acreage. 

(b) The producer must submit a 

completed application for payment and 

required supporting documentation to 

the administrative FSA county office 

during the relevant, for the crop, 

application period announced by FSA 

which will end no later than September 

15 of the crop year in which the 

fungicide was applied to a crop of 

durum wheat. 

(c) A complete application includes 

all of the following: 

(1) An application form provided by 

FSA; 

(2) Certification of the total number 

and location of acres planted to durum 

wheat on which an eligible fungicide 

was applied specifically to control 

Fusarium head blight; 

(3) Certification of the date durum 

wheat, on which an eligible fungicide 

was applied specifically to control 

Fusarium head blight, was planted; 

(4) Certification of the type of eligible 

fungicide applied to acres certified as 

planted to durum wheat; 

(5) Certification of the date eligible 

fungicide was applied to acres certified 

as planted to durum wheat; 

(6) Documentation providing 

adequate proof, as determined by FSA, 

of the producer’s actual cost of 

purchasing and applying eligible 

fungicide to acres certified as planted to 

durum wheat for one treatment; and 

(7) Any other documentation as 

determined by FSA to be necessary to 

make a determination of eligibility of 

the producer. 

(d) The producer requesting benefits 

under this program certifies the 

accuracy and truthfulness of the 

information provided in the application 

as well as any documentation filed with 

or in support of the application. All 

information provided is subject to 

verification by FSA. 

(e) Data furnished by the producer 

will be used to determine eligibility for 

program benefits. Furnishing the data is 

voluntary; however, without all 

required data program benefits will not 

be approved or provided. 

§ 1413.107 Availability of funds. 

(a) The 2008 Farm Bill authorizes up 

to $10 million to be appropriated for 

each of the 2009 through 2012 fiscal 

years for DWQP. Payments will not be 

made for claims for a particular crop 

year until after the application deadline, 

which is September 15 of that crop year, 

for the crop for which payment for the 

fungicide application is sought and only 

if funds are made available through an 

appropriation. 

(b) In the event that approval of all 

eligible applications for fungicide 

treatments for a particular crop would 

result in expenditures in excess of the 

amounts appropriated for that crop year, 

the FSA Deputy Administrator will 

prorate the funds by a national factor to 

reduce the total expected payments to 

the amount made available by the 

Secretary. FSA will prorate the 

payments in such manner as it 

determines appropriate and reasonable. 

(c) Claims that are unpaid or paid at 

a reduced rate for a crop year for any 

reason will not be carried forward for 

payment under other funds for later 

crop years, unless provided for by law 

and approved by the Deputy 

Administrator. Such unpaid claims will 

be considered, as to any unpaid amount, 

void and nonpayable. 

§ 1413.108 Payment calculation. 

(a) Subject to the availability of 

DWQP funds, the payment to an eligible 

producer will be the result of adding 

(adjusted for the producer’s share of the 

crop): 

(1) The lesser of: 

(i) The result of multiplying the 

number of acres certified by the 

producer as planted to durum wheat on 

which an eligible fungicide was applied, 

during the flowering stage, times the per 

acre national fungicide acquisition 

payment rate as set by the Deputy 

Administrator; or 

(ii) Fifty percent of the producer’s 

actual cost of purchasing eligible 

fungicide for acres certified as planted 

to durum wheat and treated for the 

applicable crop year in a manner that 

would otherwise generate a payment 

under paragraph (a)(1)(i) of this section; 

plus 

(2) The result of multiplying the 

number of acres certified as planted to 

durum wheat on which an eligible 

fungicide was applied during the 

flowering stage, times the State 

application per-acre payment rate set by 

the State committee, with such 

application payment not to exceed 50 


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percent of the actual application cost 

certified to by the producer. 

(b) The national fungicide acquisition 

payment rate set by the Deputy 

Administrator will be based on 50 

percent of the national average cost of 

eligible fungicide (only including the 

cost of the chemical itself), applied to 

one acre of durum wheat for the 

applicable crop year. 

(c) The State application payment rate 

set by the State committee will be based 

on 50 percent of the State average cost 

of applying an eligible fungicide to one 

acre of durum wheat for the applicable 

crop year. 

§ 1413.109 Refunds, joint and several 

liability. 

(a) Excess payments, payments 

provided as the result of erroneous 

information provided by any person, or 

payments resulting from a failure to 

comply with any requirement or 

condition for payment in the 

application or this subpart, must be 

refunded to CCC. 

(b) A refund required as specified in 

this section will be due with interest 

from the date of CCC disbursement and 

otherwise determined in accordance 

with paragraph (d) of this section and 

late payment charges as provided in part 

1403 of this chapter. 

(c) Persons signing an application for 

payment as having an interest in an 

operation will be jointly and severally 

liable for any refund and related charges 

found to be due as specified in this 

section. 

(d) Interest will be applicable to any 

refunds required as specified in parts 

792 and 1403 of this title. Such interest 

will be charged at the rate that the U.S. 

Department of the Treasury charges CCC 

for funds, and will accrue from the date 

CCC made the erroneous payment to the 

date of repayment. 

(e) CCC may waive the accrual of 

interest if it determines that the cause of 

the erroneous determination was not 

due to any action of the person, or was 

beyond the control of the person 

committing the violation. Any waiver is 

at the discretion of CCC alone. 

§ 1413.110 Misrepresentation and scheme 

or device. 

(a) In addition to other penalties, 

sanctions, or remedies as may apply, a 

producer will be ineligible for payment 

through the DWQP if the producer is 

determined by CCC to have: 

(1) Adopted any scheme or device 

that tends to defeat the purpose of the 

program, 

(2) Made any fraudulent 

representation, or 

(3) Misrepresented any fact affecting a 

program determination. 

(b) Any funds disbursed pursuant to 

this subpart to any producer engaged in 

a misrepresentation, scheme, or device, 

must be refunded with interest together 

with such other sums as may become 

due and all charges including interest 

will run from the date of disbursement 

of the CCC funds. Any producer 

engaged in acts prohibited by this 

section and any producer receiving 

payment as specified in this subpart 

will be jointly and severally liable with 

other persons or producers involved in 

such claim for payment for any refund 

due as specified in this section and for 

related charges. The remedies provided 

in this subpart will be in addition to 

other civil, criminal, or administrative 

remedies that may apply. 

§ 1413.111 Miscellaneous provisions. 

(a) Other interests. Any payment to 

any producer under this part will be 

made without regard to questions of title 

under State law, and without regard to 

any claim or lien against the 

commodity, or proceeds, in favor of the 

owner or any other creditor except 

agencies of the U.S. Government. 

(b) Assignments. Any producer 

entitled to any payment may assign any 

payment(s) in accordance with 

regulations governing the assignment of 

payments in part 1404 of this chapter. 

(c) Offsets. CCC may offset or 

withhold any amount due to CCC from 

any benefit provided under this subpart 

in accordance with the provisions of 

part 1403 of this chapter and part 792 

of this title. 

(d) Violations of highly erodible land 

and wetland conservation provisions. 

The provisions of part 12 of this title 

apply to this subpart. That part sets out 

certain conservation requirements as a 

general condition for farm benefits. 

(e) Violations regarding controlled 

substances. The provisions of § 718.6 of 

this title, which generally limit program 

payment eligibility for persons who 

have engaged in certain offenses with 

respect to controlled substances, will 

apply to this part. 

§ 1413.112 Appeals. 

(a) Appeals. Appeal regulations set 

forth at parts 11 and 780 of this title 

apply to determinations made under 

this subpart. 

(b) Determinations not eligible for 

administrative review or appeal. CCC 

determinations and policies that are not 

limited to a specific individual 

producer’s application are not to be 

construed to be individual program 

eligibility determinations or adverse 

decisions and are, therefore, not subject 

to administrative review or appeal 

under 7 CFR part 11 or part 780 of this 

title (but nothing in the regulations for 

this program will limit the ability of the 

National Appeals Division to decide its 

own jurisdiction under part 11). Such 

determinations include, but are not 

limited to, application periods, 

deadlines, crop years, prices, general 

statutory or regulatory provisions that 

apply to similarly situated producers, 

national average payment prices, and 

payment factors established by CCC for 

DWQP for which this subpart applies or 

similar matters requiring CCC 

determinations. 

§ 1413.113 Deceased individuals or 

dissolved entities. 

(a) Payment may be made for an 

eligible application on behalf of an 

eligible producer who is now a deceased 

individual or is a dissolved entity if a 

representative who currently has 

authority to enter into a contract on 

behalf of the producer signs the 

application for payment. 

(b) Legal documents showing proof of 

authority to sign for the deceased 

individual or dissolved entity must be 

provided. 

(c) If a producer is now a dissolved 

general partnership or joint venture, all 

members of the general partnership or 

joint venture at the time of dissolution 

or their duly authorized representatives 

must sign the application for payment. 

§ 760.114 Records and inspections. 

(a) Any producer receiving DWQP 

payments, or any other legal entity or 

person who provides information for the 

purposes of enabling a producer to 

receive a DWQP payment, must: 

(1) Maintain any books, records, and 

accounts supporting the information for 

3 years following the end of the year 

during which the request for payment 

was submitted, and 

(2) Allow authorized representatives 

of USDA and the U.S. Government 

Accountability Office, during regular 

business hours, to inspect, examine, and 

make copies of such books or records, 

and to enter the farm and to inspect and 

verify all applicable acreage in which 

the producer has an interest for the 

purpose of confirming the accuracy of 

information provided by or for the 

producer. 

(b) [Reserved] 


wwoods2 on DSK1DXX6B1PROD with RULES_PART 1
41968 Federal Register / Vol. 75, No. 138 / Tuesday, July 20, 2010 / Rules and Regulations 

Subpart B [Reserved] 

Subpart C [Reserved] 

Signed in Washington, DC on July 14, 

2010. 

Jonathan W. Coppess, 

Executive Vice President, Commodity Credit 

Corporation. 

[FR Doc. 2010–17636 Filed 7–19–10; 8:45 am] 

BILLING CODE 3410–05–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Parts 13, 47, and 91 

[Docket No. FAA–2008–0188; Amendment 

Nos. 13–34, 47–29, 91–318] 

RIN 2120–AI89 

Re-Registration and Renewal of 

Aircraft Registration 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule. 

SUMMARY: This final rule amends the 

FAA’s regulations concerning aircraft 

registration. Over a 3-year period, this 

rule will terminate the registration of all 

aircraft registered before October 1, 

2010, and will require the re-registration 

of each aircraft to retain U.S. civil 

aircraft status. These amendments also 

establish a system for a 3-year recurrent 

expiration and renewal of registration 

for all aircraft issued registration 

certificates on or after October 1, 2010. 

This final rule amends the FAA’s 

regulations to provide standards for the 

timely cancellation of registration 

numbers (N-numbers) for unregistered 

aircraft. This final rule makes other 

minor changes to establish consistency 

and ensure the regulations conform to 

statute or current Registry practices. 

These amendments will improve the 

accuracy of the Civil Aviation Registry 

database and will ensure that aircraft 

owners provide information to maintain 

accurate registration records. These 

amendments respond to the concerns of 

law enforcement and other government 

agencies to provide more accurate, upto-date aircraft registration information. 

DATES: These amendments become 

effective October 1, 2010. 

FOR FURTHER INFORMATION CONTACT: For 

technical questions concerning this final 

rule contact John Bent, Civil Aviation 

Registry, AFS–700, FAA Mike 

Monroney Aeronautical Center, 6500 

South MacArthur Boulevard, Oklahoma 

City, OK 73169; Telephone (405) 954– 

4331; e-mail john.g.bent@faa.gov. For 

legal questions concerning this final 

rule contact Robert Hawks, Office of 

Chief Counsel, (AGC–240); Federal 

Aviation Administration, 800 

Independence Avenue, SW., 

Washington, DC 20591; Telephone: 

(202) 267–7143; e-mail 

rob.hawks@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Authority for This Rulemaking 

The FAA’s authority to issue rules 

regarding aviation safety is found in 

Title 49 of the United States Code. 

Subtitle I, Section 106 describes the 

authority of the FAA Administrator. 

Subtitle VII, Aviation Programs, 

describes in more detail the scope of the 

agency’s authority. 

This rulemaking is promulgated 

under the authority described in 

Subtitle VII, Part A, Subpart III, Chapter 

441, Section 44111. Under that section, 

the FAA is charged with prescribing 

regulations considered necessary to 

carry out this part. In that section, 

Congress mandated the Administrator 

modify the system for registering and 

recording aircraft necessary to make the 

system more effective in serving the 

needs of its users. The modifications 

described in this amendment include 

measures to ensure positive, verifiable, 

and timely identification of the true 

owners of aircraft operated in the 

national airspace system. Thus, these 

changes are within the scope of the 

FAA’s statutory authority and are a 

necessary and reasonable exercise of 

that authority. 

Table of Contents 

I. Executive Summary of the Final Rule 

II. Background 

III. Summary of Comments 

IV. Discussion of Final Rule 

A. Aircraft Re-Registration and Periodic 

Renewal of Registration 

B. Reminder Notice, Extended Filing 

Timeframes, and Online Access 

C. Triennial Aircraft Registration Report 

No Longer Required 

D. Time Limits for Aircraft in Sale 

Reported and Registration Pending 

Status 

E. Conforming Amendments 

V. Miscellaneous Comments 

A. Re-Registration and Renewal 

B. Risks and Disruption 

C. Fees, User Fees, New Taxes 

D. Alternatives Suggested by Commenters 

VI. Regulatory Notices and Analyses 

A. Paperwork Reduction Act 

B. International Compatibility 

C. Regulatory Evaluation, Regulatory 

Flexibility Determination, International 

Trade Impact Assessment, and Unfunded 

Mandates Assessment 

D. Executive Order 13132, Federalism 

E. Environmental Analysis 

F. Regulations that Significantly Affect 

Energy Supply, Distribution, or Use 

G. Availability of Rulemaking Documents 

H. Small Business Regulatory Enforcement 

Fairness Act 

I. Executive Summary 

The FAA estimates that 

approximately one-third of the 357,000 

registered aircraft records it maintains 

are inaccurate and that many aircraft 

associated with those records are likely 

ineligible for United States registration. 

The inaccuracies result from failures in 

the voluntary compliance based system. 

Although aircraft owners are required to 

report the sale of an aircraft, death of an 

owner, scrapping or destruction of an 

aircraft, and changes in mailing address; 

many have not. Without owner initiated 

action, there has been no means to 

correct those records. The FAA has been 

asked by government and law 

enforcement agencies to provide more 

accurate and up-to-date aircraft 

registration information. This rule is 

intended to support the needs of our 

system users. 

The changes made by this Final Rule 

provide the FAA Aircraft Registry the 

tools to improve the currency and 

accuracy of the Civil Aircraft Registry 

database and maintain the improvement 

into the future. Re-registration of all 

U.S. civil aircraft over a three year 

period will redraw the Civil Aircraft 

Register with current data derived from 

recent contact with aircraft owners. 

Additionally, the FAA is enabled to 

cancel the registrations of those aircraft 

that are not re-registered. These 

amendments will also ensure that 

aircraft owners refresh that data by 

providing information on the status of 

their aircraft at least once every three 

years when registration is renewed. The 

expected reduction in registration data 

error provided by this rule and the 

corresponding cost of implementation is 

shown in the table below with estimates 

for alternate renewal intervals that were 

considered. 

This rule also eliminates the present 

Triennial Aircraft Registration Report 

Program, provides clear time limits and 

standards for canceling aircraft with 

registrations that have ended and for 

which no new registration application 

has been made or completed. It also 

makes several administrative changes to 

conform the regulation to statute and 

current registration practices. 

An NPRM was published in the 

Federal Register on February 28, 2008 

(73 FR 10701), requesting input on these 

goals and the proposed procedures to 

achieve them. Significant comments 

addressed concern that the proposed fee 

for registration renewal, which occurs 

every third year, would be increased 

and used as a device to raise revenue: 


wwoods2 on DSK1DXX6B1PROD with RULES_PART 1