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contains regulatory documents having general

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are keyed to and codified in the Code of

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Rules and Regulations Federal Register

59775 

Vol. 78, No. 189 

Monday, September 30, 2013 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 1218 

[Document Number AMS–FV–12–0062] 

Blueberry Promotion, Research and 

Information Order; Assessment Rate 

Increase 

AGENCY: Agricultural Marketing Service. 

ACTION: Final rule. 

SUMMARY: This rule amends the 

Blueberry Promotion, Research and 

Information Order (Order) to increase 

the assessment rate from $12 to $18 per 

ton (an increase of $0.003 per pound). 

The Order is administered by the U.S. 

Highbush Blueberry Council (USHBC) 

with oversight by the U.S. Department 

of Agriculture (USDA). Under the 

program, assessments are collected from 

domestic producers and importers and 

used for research and promotion 

projects designed to maintain and 

expand the market for highbush 

blueberries in the United States and 

abroad. Additional funds will allow the 

USHBC to expand its health research 

activities and promotional efforts. The 

USHBC uses its health information in its 

promotion messaging to help build 

demand for blueberries. Increasing 

demand will help move the growing 

supply of blueberries, which will 

benefit producers and consumers. 

DATES: Effective Date: January 1, 2014. 

FOR FURTHER INFORMATION CONTACT: 

Maureen T. Pello, Marketing Specialist, 

Research and Promotion Division, Fruit 

and Vegetable Program, AMS, USDA, 

P.O. Box 831, Beavercreek, Oregon, 

97004; telephone: (503) 632–8848; 

facsimile (503) 632–8852; or electronic 

mail: Maureen.Pello@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This rule 

is issued under the Order (7 CFR part 

1218). The Order is authorized under 

the Commodity Promotion, Research, 

and Information Act of 1996 (1996 Act) 

(7 U.S.C. 7411–7425). 

Executive Order 12866 

The Office of Management and Budget 

(OMB) has waived the review process 

required by Executive Order 12866 for 

this action. 

Executive Order 13175 

This action has been reviewed in 

accordance with the requirements of 

Executive Order 13175, Consultation 

and Coordination with Indian Tribal 

Governments. The review reveals that 

this regulation will not have substantial 

and direct effects on Tribal governments 

and will not have significant Tribal 

implications. 

Executive Order 12988 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. It is not intended to have 

retroactive effect. Section 524 of the 

1996 Act (7 U.S.C. 7423) provides that 

it shall not affect or preempt any other 

Federal or State law authorizing 

promotion or research relating to an 

agricultural commodity. 

Under section 519 of the 1996 Act (7 

U.S.C. 7418), a person subject to an 

order may file a written petition with 

USDA stating that an order, any 

provision of an order, or any obligation 

imposed in connection with an order, is 

not established in accordance with the 

law, and request a modification of an 

order or an exemption from an order. 

Any petition filed challenging an order, 

any provision of an order, or any 

obligation imposed in connection with 

an order, shall be filed within two years 

after the effective date of an order, 

provision, or obligation subject to 

challenge in the petition. The petitioner 

will have the opportunity for a hearing 

on the petition. Thereafter, USDA will 

issue a ruling on the petition. The 1996 

Act provides that the district court of 

the United States for any district in 

which the petitioner resides or conducts 

business shall have the jurisdiction to 

review a final ruling on the petition, if 

the petitioner files a complaint for that 

purpose not later than 20 days after the 

date of the entry of USDA’s final ruling. 

Background 

This rule amends the Order to 

increase the assessment rate from $12 to 

$18 per ton (an increase of $0.003 per 

pound). The Order is administered by 

the USHBC with oversight by USDA. 

Under the program, assessments are 

collected from domestic producers and 

importers and used for research and 

promotion projects designed to maintain 

and expand the market for highbush 

blueberries in the United States and 

abroad. Additional funds will enable the 

USHBC to expand its health research 

activities and promotional efforts. The 

USHBC uses its health information in its 

promotion messaging to help build 

demand for blueberries. Increasing 

demand will help move the growing 

supply of blueberries, which will 

benefit producers and consumers. This 

action was unanimously recommended 

by the USHBC. 

The Order specifies that the funds to 

cover the USHBC’s expenses shall be 

paid from assessments on producers and 

importers, donations from persons not 

subject to assessments and from other 

funds available to the USHBC. First 

handlers are responsible for collecting 

and submitting reports and producer 

assessments to the USHBC. Handlers 

must also maintain records necessary to 

verify their reports. Importers are 

responsible for paying assessments to 

the USHBC on highbush blueberries 

imported into the United States through 

U.S. Customs and Border Protection 

(Customs). The Order also provides for 

two exemptions. Producers and 

importers who produce or import less 

than 2,000 pounds of blueberries 

annually, and producers and importers 

of 100 percent organic blueberries are 

exempt from the payment of 

assessments. 

Section 1218.52(c) of the Order 

specifies that assessments shall be 

levied at a rate of $12 per ton on all 

highbush blueberries. The assessment 

rate may be modified with the approval 

of the Secretary. 

The $12 per ton assessment rate has 

been in effect since the Order’s 

inception in 2000. The USHBC’s fiscal 

year runs from January 1 through 

December 31. USHBC expenditures 

have ranged from $1,522,519 in 2004 to 

$3,931,296 in 2012. Expenditures for 

health and nutrition research have 

ranged from $113,880 in 2004 (7.5 

percent of total expenses) to $668,059 in 

2011/2012 (17.0 percent of total 

expenses). 

USHBC expenditures for health 

messaging and promotion activities 

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59776 Federal Register / Vol. 78, No. 189 / Monday, September 30, 2013 / Rules and Regulations 

1Brazelton, C., World Blueberry Acreage & 

Production, 2011, Brazelton Ag Consulting, p. 49. 

2Brazelton, World Blueberry Acreage & 

Production, p. 43. 

3Brazelton, World Blueberry Acreage & 

Production, p. 42. 

4 Kaiser, Henry M., An Economic Analysis of 

Domestic Market Impacts of the U.S. Highbush 

Blueberry Council, 2010, Cornell University, p. 3. 

5Noncitrus Fruits and Nuts 2012 Summary, 

January 2013, USDA, National Agricultural 

Statistics Service, p. 10. 

have ranged from $920,020 in 2004 

(60.4 percent of total expenses) to 

$2,820,817 in 2012 (71.8 percent of total 

expenses). Pursuant to section 

1218.50(i) of the Order, administrative 

expenditures have been under 15 

percent of total expenses annually. 

USHBC assessment income has 

ranged from $1,435,989 in 2004 

($1,080,230 in domestic assessments 

and $355,759 in import assessments) to 

$4,051,836 in 2012 ($2,434,646 in 

domestic assessments and $1,601,966 in 

import assessments). Additionally, 

pursuant to section 1218.50(j) of the 

Order, the USHBC maintains a monetary 

reserve with funds that do not exceed 

one fiscal period’s budget. 

USHBC 2012 Recommendation 

The USHBC met on October 5, 2012, 

and unanimously recommended 

increasing its assessment rate from $12 

to $18 per ton ($0.006 to $0.009 per 

pound). This equates to an increase of 

$6 per ton, or $0.003 per pound. 

Additional funds would enable the 

USHBC to expand its health research 

activities and promotional efforts. Since 

the program’s inception, the USHBC has 

funded several health and nutrition 

research projects, many of them 

laboratory studies. USHBC research has 

shown possibilities relating to various 

health issues, including cardiovascular 

health and cancer. However, most of 

these preliminary findings have been 

done under laboratory conditions. 

Additional funds will allow the USHBC 

to incorporate specific areas of research 

into expanded clinical (human) trials. 

Clinical trials are important for the 

industry to be able to make health 

claims according to the Federal Trade 

Commission (FTC) and the Food and 

Drug Administration (FDA) 

requirements for the advertising of food. 

The USHBC uses its health 

information in its promotion messaging 

to help build demand for blueberries. 

Increasing demand will help move the 

growing supply of blueberries. 

Worldwide highbush blueberry 

production has grown from 393 million 

pounds in 2005 to 753 million pounds 

in 2010. Production is expected to 

increase to 1 billion pounds in 2013 and 

to nearly 1.4 billion pounds by 2015.1

World highbush blueberry acreage grew 

from approximately 50,000 acres in 

1995 to over 190,000 acres in 2010.2

North American highbush blueberry 

acreage increased by over 55 percent 

from 71,075 acres in 2005 to 110,290 

acres in 2010.3

With highbush blueberry production 

expected to increase more than 38 

percent by 2015, the USHBC hopes to 

increase consumption among existing 

blueberry consumers and to attract new 

blueberry users. Per capita consumption 

of blueberries increased from 15.7 

ounces in 2000 to 31.4 ounces in 2009.4

According to the North American 

Blueberry Council, U.S. per capita 

consumption is now estimated at 36.2 

ounces. In order to maintain a balance 

between supply and demand, a 38 

percent increase in per capita 

consumption would equate to a level of 

50 ounces per person by 2015. 

At the $18 per ton assessment rate 

and assessable tonnage ranging from 

350,000 to 500,000 tons (700 million to 

1 billion pounds), assessment income 

could range from $6.3 million to $9 

million annually. As an example, if 15 

percent of the budget was allocated to 

health and nutrition research and 60 

percent were allocated to promotion, 

funds available for health and nutrition 

research could range from $945,000 to 

$1.35 million annually and funds 

available for health messaging and 

promotion could range from $3.78 

million to $5.4 million annually. 

In light of the need to allocate more 

funds towards health research activities 

and continue to build demand for 

blueberries, the USHBC recommended 

increasing the assessment rate under the 

Order from $12 to $18 per ton (or by 

$0.003 per pound). Section 1218.52(c) of 

the Order is amended accordingly. 

Changes are also made to section 

1218.52(d)(2) to update the listed 

Harmonized Tariff Schedule of the 

United States (HTSUS) numbers; this 

change is administrative in nature and 

has no impact on the assessment rate. 

Final Regulatory Flexibility Act 

Analysis 

In accordance with the Regulatory 

Flexibility Act (RFA) (5 U.S.C. 601– 

612), AMS is required to examine the 

impact of this rule on small entities. 

Accordingly, AMS has considered the 

economic impact of this action on small 

entities. 

The purpose of the RFA is to fit 

regulatory actions to the scale of 

businesses subject to such actions so 

that small businesses will not be 

disproportionately burdened. The Small 

Business Administration defines, in 13 

CFR Part 121, small agricultural 

producers as those having annual 

receipts of no more than $750,000 and 

small agricultural service firms (first 

handlers and importers) as those having 

annual receipts of no more than $7.0 

million. 

There are approximately 2,000 

domestic producers, 78 first handlers 

and 194 importers of highbush 

blueberries covered under the program. 

Dividing the highbush blueberry crop 

value for 2012 reported by the National 

Agricultural Statistics Service (NASS) of 

$781,808,000 5 by the number of 

producers (2,000) yields an average 

annual producer revenue estimate of 

$390,904. It is estimated that in 2012, 

about 68 percent of the first handlers 

shipped under $7 million worth of 

highbush blueberries. Based on 2012 

Customs data, it is estimated that 90 

percent of the importers shipped under 

$7 million worth of highbush 

blueberries. Based on the foregoing, the 

majority of producers, first handlers and 

importers may be classified as small 

entities. 

Regarding value of the commodity, as 

mentioned above, based on 2012 NASS 

data, the value of the domestic highbush 

blueberry crop was about $782 million. 

According to Customs data, the value of 

2012 imports was about $515 million. 

This rule amends section 1218.52(c) 

of the Order to increase the assessment 

rate from $12 to $18 per ton (an increase 

of $0.003 per pound). The Order is 

administered by the USHBC with 

oversight by USDA. Under the program, 

assessments are collected from domestic 

producers and importers and used for 

research and promotion projects 

designed to maintain and expand the 

market for highbush blueberries in the 

United States and abroad. Additional 

funds will enable the USHBC to expand 

its health research activities and 

promotional efforts. The USHBC uses its 

health information in its promotion 

messaging to help build demand. 

Increasing demand will help move the 

growing supply of blueberries, which 

will benefit producers and consumers. 

This rule also updates the HTSUS 

numbers listed in section 1218.52(d)(2). 

Authority for this action is provided in 

section 1218.52(c) of the Order and 

section 517 of the 1996 Act. 

Regarding the economic impact of this 

rule on affected entities, this action 

increases the assessment obligation on 

domestic producers and importers. 

While assessments impose additional 

costs on producers and importers, the 

costs are minimal and uniform on all. 

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6The econometric model used statistical methods 

with time series data to measure how strongly the 

various blueberry demand factors are correlated 

with sales in the United States. 

7Price elasticity of supply is a measure used in 

economics to show the responsiveness, or elasticity, 

of the quantity supplied/produced of a good or 

service to a change in price. When the coefficient 

is less than one, the supply can be described as 

inelastic. When the coefficient is greater than one, 

the supply can be described as elastic. 

8 Kaiser, An Economic Analysis, 2010, p. 24. 9Noncitrus Fruits and Nuts, p. 35. 

The costs are also offset by the benefits 

derived from the operation of the 

program. It is estimated that 1,857 

producers and 173 importers pay 

assessments under the program. 

There have been two economic 

studies conducted since the Order’s 

inception that evaluated the 

effectiveness of the USHBC’s promotion 

program. The studies were conducted 

by Dr. Harry M. Kaiser at Cornell 

University in 2005 and 2010 and are 

both titled ‘‘An Economic Analysis of 

Domestic Market Implications of the 

U.S. Highbush Blueberry Council.’’ 

These studies may be obtained from 

Maureen Pello at the previously 

mentioned address in the FOR FURTHER

INFORMATION CONTACT section. The 2005 

study evaluated the program from 2001– 

2004 and the 2010 study evaluated the 

program from 2001–2009. The purpose 

of the research was twofold: (1) To 

determine the domestic market 

implications of the USHBC’s promotion 

program and (2) to complete a benefitcost ratio (rate of return) for the 

promotion activities conducted by the 

USHBC. The impact of the USHBC’s 

export marketing activities was not 

evaluated because most of the USHBC’s 

marketing budget has been invested in 

the United States (about 90 percent). 

To assess the impact of the USHBC’s 

domestic promotion activities on 

blueberry sales (a measure of demand), 

an econometric demand model was 

developed for blueberry sales in the 

United States. The model allowed the 

impact of the USHBC’s generic 

promotion activities to be estimated 

while taking into account the impact of 

other factors that influence demand. 

These other factors include the price of 

blueberries, the price of blueberry 

substitutes, population, and consumer 

taste and preferences.6 The research 

shows that the USHBC’s promotion 

activities increased total blueberry sales 

by 441 million pounds in total, or 49 

million pounds per year from 2001 

through 2009. This represents an annual 

increase in blueberry sales of 12.3 

percent. Thus, the promotional 

spending by the USHBC has a positive 

effect on domestic highbush blueberry 

demand. 

The results also indicate that generic 

blueberry promotion by the USHBC has 

had a positive impact on the blueberry 

producers’ price. Specifically, from 

2001 to 2009, the average increase in 

price ranged from 14 cents per pound in 

the case of the least elastic supply 

response to 5 cents per pound in the 

case of the most elastic supply 

response.7 The average impact over all 

supply responses was 8.4 cents per 

pound. In other words, had there been 

no generic blueberry promotion by the 

USHBC, the average producers’ price 

would have been 8.4 cents per pound, 

or 7.2 percent lower than it was from 

2001 through 2009. 

The studies also show that USHBC 

promotion efforts have had a positive 

impact on producer surplus (i.e., 

producer profits) from 2001 through 

2009. The average increase in producer 

surplus due to generic blueberry 

promotion by the USHBC ranged from 

$5.4 million per year, in the case of the 

least elastic supply response, to $1.9 

million per year, in the case of the most 

elastic supply response. The average 

increase in producer surplus over all 

supply responses was $3.2 million per 

year. Thus, the studies concluded that 

the domestic promotion efforts of the 

USHBC have had a positive impact on 

producer profits since 2001. 

An average benefit-cost ratio (BCR) for 

the USHBC’s generic promotion 

activities was also computed. The BCR 

measures the net benefits of the 

program, which is equal to the gain in 

producer surplus divided by the cost of 

the marketing program. The BCR 

exceeded 1.0 for every supply response 

considered in Dr. Kaiser’s study.8 For 

the least elastic supply response, the 

average BCR was 15.41. This implies 

that, on average from 2001–2009, the 

benefits of the USHBC promotion 

program has been over 15 times greater 

than the costs. At the opposite end of 

the spectrum in the supply response, 

the average BCR was computed to be 

5.36, implying that the benefits of the 

USHBC were over five times greater 

than the costs. Given the wide range of 

supply responses considered in the 

analysis, and the fact that the BCR was 

above 1.0 in all cases, there is 

significant evidence that the USHBC’s 

promotion programs have been 

profitable for the domestic blueberry 

industry. The average BCR over all 

supply responses was 9.12 (i.e., the 

benefits of the promotion activities of 

the USHBC exceeded the costs by ninefold). 

To calculate the percentage of 

producer revenue represented by the 

assessment rate, the $18 per ton ($0.009 

per pound) assessment rate is divided 

by the average producer price. 

According to the NASS, the average 

producer price ranged from $1.85 per 

pound in 2011 ($2.14 per pound for 

fresh and $1.28 per pound for 

processed) to $1.69 per pound in 2012 

($2.19 per pound for fresh and $0.923 

per pound for processed).9 Thus, the 

assessment rate as a percentage of 

producer price could range from 0.486 

to 0.532 percent (or from 0.420 to 0.411 

percent for fresh and from 0.703 to 

0.975 percent for processed). 

In accordance with the Paperwork 

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

Chapter 35), the information collection 

and recordkeeping requirements that are 

imposed by the Order have been 

approved previously under OMB 

control number 0581–0093. This rule 

does not change the information 

collection and recordkeeping 

requirements previously approved and 

imposes no additional reporting and 

recordkeeping burden on blueberry 

producers, first handlers and importers. 

As with all Federal promotion 

programs, reports and forms are 

periodically reviewed to reduce 

information requirements and 

duplication by industry and public 

sector agencies. Finally, USDA has not 

identified any relevant Federal rules 

that duplicate, overlap, or conflict with 

this rule. 

AMS 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. 

Regarding alternatives, the USHBC 

has been considering an increase in the 

assessment rate for the past few years. 

The USHBC reviewed rates ranging from 

maintaining the status quo at $12 per 

ton to doubling the rate to $24 per ton. 

In 2009, the USHBC recommended 

increasing the rate to $24 per ton. Two 

members opposed the increase because 

a rate of $18 per ton had been discussed 

at previous meetings and communicated 

to producers. USDA published a 

proposed rule for public comment in 

July 2009 (74 FR 36955; July 27, 2009) 

and ultimately withdrew the proposed 

rule in February 2010 based on the 

comments received (75 FR 7985; 

February 23, 2010). 

Since that time, the USHBC and its 

committees have continued to discuss 

the need to increase the assessment rate. 

USHBC representatives have met with 

various producer associations and 

discussed this issue with their members 

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59778 Federal Register / Vol. 78, No. 189 / Monday, September 30, 2013 / Rules and Regulations 

as well as with importers. Ultimately 

the USHBC unanimously recommended 

increasing the rate to $18 per ton at its 

October 2012 meeting. 

A proposed rule concerning this 

action was published in the Federal 

Register on May 20, 2013 (78 FR 29258). 

USDA mailed copies of the rule to all 

known highbush blueberry producers 

and importers of record. The USHBC 

included notifications about the 

proposed rule in its newsletters and also 

mailed related information to producers 

and importers. Finally, the proposal was 

made available through the Internet by 

USDA and the Office of the Federal 

Register. A 60-day comment period 

ending July 19, 2013, was provided to 

allow interested persons to submit 

comments. 

Analysis of Comments 

One hundred and sixty eight 

comments were received in response to 

the proposed rule; 137 supported the 

increase (119 were a form letter), 29 

were opposed and 2 commented 

without taking a position on the action. 

The comments are addressed in the 

following paragraphs. 

Comments in Support 

The 137 comments which supported 

increasing the assessment rate stated 

that additional funds would allow the 

USHBC to expand its promotion and 

health research efforts at a time when 

supplies are dramatically increasing. 

According to the commenters, North 

American highbush blueberry acreage 

has increased from 71,075 acres in 2005 

to about 123,635 acres in 2012, a 74 

percent increase in seven years. Newly 

planted acres and enhancement of 

existing acres has led to successive 

records in North American highbush 

blueberry production, which was about 

589 million pounds in 2012, a 93 

percent increase over the estimated 305 

million pounds produced in 2005. 

Production could reach 735 million 

pounds by 2015. The commenters stated 

that, with the increase in supply, there 

is a need to significantly increase 

domestic per capita consumption from 

its current level of about 36 ounces per 

person to a projected 50 ounces per 

person, a 38 percent increase. 

The commenters stated that 

additional funds would allow the 

USHBC to expand its health research 

efforts and move to more extensive 

human clinical trials. Funds would also 

allow for continued education about 

blueberries and to elevate awareness 

and maintain consumer confidence. One 

commenter supported doubling the 

assessment rate. 

Comments Opposed 

Twenty-nine comments received were 

opposed to increasing the assessment 

rate. Eleven commenters argued that 

increasing the assessment rate is not 

needed because the increase in 

blueberry supply will automatically 

bring additional funds to the USHBC to 

support its activities. USDA concurs 

that the current assessment rate of $12 

per ton on the level of production over 

the next few years will increase USHBC 

income. At the $12 per ton rate and 

assessable tonnage ranging from 350,000 

to 500,000 tons (700 million to 1 billion 

pounds), assessment income would 

range from $4.2 million to $6 million 

annually. While higher assessable 

volumes compute to more USHBC 

income, maintaining the $12 per 

assessment rate will not generate the 

amount of money necessary to fund 

expensive human clinical trials and 

conduct promotion activities needed to 

continue to build demand to move the 

growing supply of blueberries. 

Three commenters argued that a better 

use of assessment funds would be to 

study challenges like the spotted wing 

drosophila (SWD) and other industry 

problems. While the majority of USHBC 

funds are used for health research and 

promotion, the USHBC does invest in 

other areas. For example, the USHBC’s 

Good Practices Committee is tasked 

with educating growers and handlers 

about best practices regarding food 

production and is reviewing issues like 

the SWD. In an effort to explore cost 

savings measures for the industry, the 

USHBC recently funded a research 

project related to the mechanical 

harvesting of blueberries. Thus, the 

USHBC does address other issues, 

provided they are within the scope of 

the Order’s authority. 

Four commenters argued that an 

assessment rate increase would hurt 

small growers. One commenter 

recommended that the rate be increased 

only for large growers, as an example, 

the top 10 percent by acreage or 

something similar. Section 1218.53(a) of 

the Order in fact provides that small 

growers who produce less than 2,000 

pounds of blueberries annually are 

exempt from the payment of 

assessments. USDA reviewed data for 

the top 10 percent of growers by acreage 

and concluded that not enough 

assessment income would be generated 

for the USHBC to fund expanded human 

clinical trials and conduct promotion 

activities needed to build demand and 

move the growing supply of blueberries. 

While the increased assessment rate will 

impose an additional cost on growers, it 

is estimated to be less than 1 percent of 

the producer price. 

Additionally, the two economic 

studies by Dr. Kaiser cited earlier in this 

rule have indicated that generic 

blueberry promotion by the USHBC has 

had a positive impact on producer 

prices. Specifically, had there been no 

generic blueberry promotion by the 

USHBC, the average producers’ price 

would have been 8.4 cents per pound, 

or 7.2 percent lower than it was from 

2001 through 2009. 

One commenter expressed concern 

that the USHBC spends most of its 

promotion funds on the prepared foods 

industry, baking, catering, restaurant 

services where blueberry alternatives 

are accepted practices due to a lack of 

demand and education of the consumer. 

The USHBC allocates funds to several 

promotion areas. In 2013, the USHBC 

budgeted $2.505 million for market 

promotion and publicity. Of that $2.505 

million, $1.67 million (or almost 67 

percent) is for consumer/food service 

publicity, $400,000 is for food 

manufacturing publicity, and $325,000 

is for export market promotion. Thus, a 

significant portion of the USHBC’s 

program targets consumers. 

Two commenters expressed concern 

that the USHBC does not actively 

promote U.S. grown blueberries but 

rather blueberries in general. Some 

commenters also argued that U.S. 

growers are unfairly assessed for the 

promotion of poor quality imports. 

Under the Order, U.S. growers as well 

as importers of highbush blueberries 

must pay assessments. Over one-third of 

the USHBC’s assessments are derived 

from imports. Thus, with both U.S. 

growers and importers paying into the 

program, promotion campaigns must be 

designed to benefit all blueberries. 

One commenter argued that the 

USHBC is a bureaucracy that should be 

cut and that it gouges the U.S. tax payer 

and growers. Another commenter also 

expressed concern about costs 

associated with USHBC meetings. 

Research and promotion programs 

overseen by USDA are self-help 

programs funded by their respective 

industries and do not receive taxpayer 

funds. While the increased assessment 

rate will impose an additional cost on 

growers, it is estimated to be less than 

1 percent of the producer price. 

Regarding USHBC meetings, the 

USHBC holds two meetings per year, 

one in a blueberry producing area which 

allows industry members across the 

country to attend the meeting and the 

second whenever possible near an 

airport hub to limit travel costs. Travel 

costs are considered administrative and 

section 1218.50(i) of the Order limits 

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1See, Regulatory Capital Rules: Regulatory 

Capital, Implementation of Basel III, Capital 

Adequacy, Transition Provisions, Prompt Corrective 

Action, Standardized Approach for Risk-weighted 

Assets, Market Discipline and Disclosure 

Requirements, Advanced Approaches Risk-Based 

Capital Rule, and Market Risk Capital Rule (July 2, 

2013), available at: http://www.federalreserve.gov/

newsevents/press/bcreg/20130702a.htm (revised 

capital framework). 

administrative costs to 15 percent of a 

fiscal year’s available income. In 2012, 

the USHBC’s administrative costs were 

7.46 percent of available income, much 

lower than the Order’s threshold. 

No changes have been made to the 

proposed rule based on these opposing 

comments. 

Other Comments 

Two comments were received that did 

not take a position on the proposed 

assessment rate increase. One 

commenter stated that she supports 

promoting blueberries. Another 

commenter asked about the amount of 

funds used for administration versus 

promotion, hoping that at least 75 

percent of the funds are used for 

promotion, research and information 

projects. As previously mentioned, 

section 1218.50(i) limits the funds that 

the USHBC can spend for 

administration to 15 percent of available 

income for the year. In 2012, the 

USHBC’s administrative costs were 7.46 

percent of available income, much 

lower than the Order’s threshold. 

USHBC 2012 actual program expenses 

were almost 80 percent of its total 

expenditures. 

After consideration of all relevant 

matters presented, including the 

information and recommendation 

submitted by the USHBC and other 

available information, it is hereby found 

that this rule, as hereinafter set forth, is 

consistent with and would effectuate 

the purposes of the 1996 Act. 

List of Subjects in 7 CFR Part 1218 

Administrative practice and 

procedure, Advertising, Consumer 

information, Marketing agreements, 

Blueberry promotion, Reporting and 

recordkeeping requirements. 

For the reasons set forth in the 

preamble, Part 1218, Chapter XI of Title 

7 is amended as follows: 

PART 1218—BLUEBERRY 

PROMOTION, RESEARCH, AND 

INFORMATION ORDER 

■ 1. The authority citation for 7 CFR 

part 1218 continues to read as follows: 

Authority: 7 U.S.C. 7411–7425; 7 U.S.C. 

7401. 

■ 2. In § 1218.52, paragraph (c) and the 

first sentence of paragraph (d)(2) are 

revised to read as follows: 

§ 1218.52 Assessments. 

* * * * * 

(c) Such assessments shall be levied at 

a rate of $18 per ton (or $0.01984 per 

kg) on all blueberries. The assessment 

rate will be reviewed, and may be 

modified with the approval of the 

Secretary. 

(d) * * * 

(2) The import assessment shall be 

uniformly applied to imported fresh and 

frozen blueberries that are identified by 

the numbers 0810.40.0029 and 

0811.90.2028, respectively, in the 

Harmonized Tariff Schedule of the 

United States or any other numbers 

used to identify fresh and frozen 

blueberries. * * * 

* * * * * 

Dated: September 24, 2013. 

Rex A. Barnes, 

Associate Administrator. 

[FR Doc. 2013–23695 Filed 9–27–13; 8:45 am] 

BILLING CODE 3410–02–P 

FEDERAL RESERVE SYSTEM 

12 CFR Parts 225 and 252 

[Docket No. R–1463; RIN 7100 AE–01] 

Regulations Y and YY: Application of 

the Revised Capital Framework to the 

Capital Plan and Stress Test Rules 

AGENCY: Board of Governors of the 

Federal Reserve System (Board). 

ACTION: Interim final rule with request 

for comment. 

SUMMARY: The Board invites comment 

on an interim final rule that amends the 

capital plan and stress test rules to 

require a bank holding company with 

total consolidated assets of $50 billion 

or more to estimate its tier 1 common 

ratio using the methodology currently in 

effect in 2013 under the existing capital 

guidelines (not the rules as revised on 

July 2, 2013). The interim final rule also 

clarifies when a banking organization 

would estimate its minimum regulatory 

capital ratios using the advanced 

approaches for a given capital plan and 

stress test cycle and makes minor, 

technical changes to the capital plan 

rule. 

DATES: This rule is effective on 

September 30, 2013. Comments must be 

received on or before November 25, 

2013. 

ADDRESSES: You may submit comments, 

identified by Docket R–1463 and RIN 

No. 7100 AE 01, by any of the following 

methods: 

Agency Web site: http://

www.federalreserve.gov. Follow the 

instructions for submitting comments at 

http://www.federalreserve.gov/apps/

foia/proposedregs.aspx. 

Federal eRulemaking Portal: http://

www.regulations.gov. Follow the 

instructions for submitting comments. 

Email: regs.comments@

federalreserve.gov. Include docket 

number in the subject line of the 

message. 

Facsimile: (202) 452–3819 or (202) 

452–3102. 

Mail: Robert deV. Frierson, Secretary, 

Board of Governors of the Federal 

Reserve System, 20th Street and 

Constitution Avenue NW., Washington, 

DC 20551. 

All public comments are available 

from the Board’s Web site at http://

www.federalreserve.gov/apps/foia/

proposedregs.aspx as submitted, unless 

modified for technical reasons. 

Accordingly, your comments will not be 

edited to remove any identifying or 

contact information. Public comments 

may also be viewed electronically or in 

paper form in Room MP–500 of the 

Board’s Martin Building (20th and C 

Streets NW.) between 9 a.m. and 5 p.m. 

on weekdays. 

FOR FURTHER INFORMATION CONTACT: Lisa 

Ryu, Deputy Associate Director, (202) 

263–4833, Constance Horsley, Manager, 

(202) 452–5239, or Ann McKeehan, 

Senior Supervisory Financial Analyst, 

(202) 973–6903, Division of Banking 

Supervision and Regulation; Laurie 

Schaffer, Associate General Counsel, 

(202) 452–2272, Ben McDonough, 

Senior Counsel, (202) 452–2036, or 

Christine Graham, Senior Attorney, 

(202) 452–3005, Legal Division, Board of 

Governors of the Federal Reserve 

System, 20th Street and Constitution 

Avenue NW., Washington, DC 20551. 

Users of Telecommunication Device for 

Deaf (TDD) only, call (202) 263–4869. 

SUPPLEMENTARY INFORMATION: 

I. Background 

On July 2, 2013, the Board approved 

revised risk-based and leverage capital 

requirements for banking organizations 

that implement the Basel III regulatory 

capital reforms and certain changes 

required by the Dodd-Frank Wall Street 

Reform and Consumer Protection Act 

(revised capital framework).1 The 

revised capital framework introduces a 

new common equity tier 1 capital ratio 

and supplementary leverage ratio, raises 

the minimum tier 1 ratio and, for certain 

banking organizations, leverage ratio, 

implements strict eligibility criteria for 

regulatory capital instruments, and 

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