Federal Register / Vol. 83, No. 134 / Thursday, July 12, 2018 / Rules and Regulations 32193 

Revenue Code allows you to reduce 

your salary (through an employer 

allotment) and provide that portion of 

your salary back to your employer. 

Instead of being paid to you as taxable 

income, this allotted amount is used to 

purchase your FEHB insurance for you. 

The effect is that your taxable income is 

reduced. Because taxable income is 

reduced, the amount of tax you pay is 

reduced. You save on Federal income 

tax, Social Security and Medicare tax 

and in most States and localities, State 

and local income taxes. 

PART 894—FEDERAL EMPLOYEES 

DENTAL AND VISION INSURANCE 

PROGRAM 

■ 6. The authority citation for part 894 

continues to read as follows: 

Authority: 5 U.S.C. 8962; 5 U.S.C. 8992; 

Subpart C also issued under section 1 of Pub. 

L. 110–279, 122 Stat. 2604. 

■ 7. In § 894.101, the definitions for 

‘‘Domestic partner’’ and ‘‘Domestic 

partnership’’ are removed and the 

definition for ‘‘Stepchild’’ is revised to 

read as follows: 

§ 894.101 Definitions. 

* * * * * 

Stepchild means your spouse’s child 

born within or outside marriage or his 

or her adopted child. The child of your 

spouse shall continue to be considered 

your stepchild after your divorce from 

your spouse or the death of your spouse 

so long as the child continues to live 

with you in a regular parent-child 

relationship. 

* * * * * 

■ 8. In § 894.403, paragraph (a) is 

revised to read as follows: 

§ 894.403 Are FEDVIP premiums paid on a 

pre-tax basis? 

(a) Your FEDVIP premiums are paid 

on a pre-tax basis (called premium 

conversion) if you are an active 

employee, your salary is sufficient to 

make the premium allotments, and your 

agency will be able to make pre-tax 

allotments. 

* * * * * 

[FR Doc. 2018–14938 Filed 7–11–18; 8:45 am] 

BILLING CODE 6325–63–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 929 

[Doc. No. AMS–SC–17–0066; SC17–929–3 

FR] 

Cranberries Grown in States of 

Massachusetts, et al.; Establishment of 

Handler Diversion and Reporting 

Requirements and New Information 

Collection 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This rule implements a 

recommendation to establish handler 

diversion and reporting requirements 

under the marketing order for 

cranberries grown in the production 

area (Order). This action establishes the 

procedures handlers use to divert fruit 

through disposal or into noncompetitive 

outlets. The reporting requirements 

support the diversion procedures by 

providing the necessary documentation 

to help ensure compliance when a 

volume regulation is established. 

DATES: Effective August 13, 2018. 

FOR FURTHER INFORMATION CONTACT: 

Doris Jamieson, Marketing Specialist, or 

Christian D. Nissen, Regional Director, 

Southeast Marketing Field Office, 

Marketing Order and Agreement 

Division, Specialty Crops Program, 

AMS, USDA; Telephone: (863) 324– 

3375, Fax: (863) 291–8614, or Email: 

Doris.Jamieson@ams.usda.gov or 

Christian.Nissen@ams.usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Richard Lower, 

Marketing Order and Agreement 

Division, Specialty Crops Program, 

AMS, USDA, 1400 Independence 

Avenue SW, STOP 0237, Washington, 

DC 20250–0237; Telephone: (202) 720– 

2491, Fax: (202) 720–8938, or Email: 

Richard.Lower@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This final 

rule, pursuant to 5 U.S.C. 553, amends 

regulations used to carry out a 

marketing order as defined in 7 CFR 

900.2(j). This final rule is issued under 

Marketing Agreement and Order No. 

929, as amended (7 CFR part 929), 

regulating the handling of cranberries 

grown in the states of Massachusetts, 

Rhode Island, Connecticut, New Jersey, 

Wisconsin, Michigan, Minnesota, 

Oregon, Washington, and Long Island in 

the State of New York. Part 929 (referred 

to as the ‘‘Order’’) is effective under the 

Agricultural Marketing Agreement Act 

of 1937, as amended (7 U.S.C. 601–674), 

hereinafter referred to as the ‘‘Act.’’ The 

Committee locally administers the 

Order and is comprised of growers of 

cranberries operating within the 

production area, and a public member. 

The Department of Agriculture 

(USDA) is issuing this rule in 

conformance with Executive Orders 

13563 and 13175. This action falls 

within a category of regulatory actions 

that the Office of Management and 

Budget (OMB) exempted from Executive 

Order 12866 review. Additionally, 

because this rule does not meet the 

definition of a significant regulatory 

action, it does not trigger the 

requirements contained in Executive 

Order 13771. See OMB’s Memorandum 

titled ‘‘Interim Guidance Implementing 

Section 2 of the Executive Order of 

January 30, 2017, titled ‘Reducing 

Regulation and Controlling Regulatory 

Costs’ ’’ (February 2, 2017). 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. This final rule is not intended 

to have retroactive effect. 

The Act 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 file 

with USDA 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 law 

and request a modification of the order 

or to be exempted therefrom. A handler 

is afforded the opportunity for a hearing 

on the petition. After the hearing, USDA 

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 his 

or her principal place of business, has 

jurisdiction to review USDA’s ruling on 

the petition, provided an action is filed 

not later than 20 days after the date of 

the entry of the ruling. 

This final rule establishes handler 

diversion and reporting requirements 

under the Order. This rule establishes 

procedures handlers use to divert fruit 

through disposal or into noncompetitive 

outlets. The reporting requirements 

support the diversion procedures by 

providing the necessary documentation 

to help ensure compliance when a 

volume regulation is established. This 

action was recommended by the 

Committee at its August 31, 2017, 

September 15, 2017, and October 13, 

2017, meetings. 

The Order provides for the use of 

volume regulation to stabilize prices 

and improve grower returns during 

periods of oversupply. Section 

929.51(a)(2) specifies that a handler 

withholding program must be 


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recommended by the Committee no 

later than August 31 and that such 

recommendation shall include the free 

and restricted percentages for the crop 

year. On August 31, 2017, the 

Committee met and recommended free 

and restricted percentages of 85 percent 

free and 15 percent restricted. Handler 

diversion is one method that handlers 

can utilize to meet restricted percentage 

requirements. 

Section 929.54 provides, in part, that 

whenever the Secretary of Agriculture 

(Secretary) has fixed the free and 

restricted percentages for any fiscal 

period, each handler shall withhold 

from handling a portion of the 

cranberries acquired during such 

period. This section also provides the 

authority for the Committee to establish, 

with the approval of the Secretary, rules 

and regulations necessary to administer 

this section. Section 929.56 provides 

special provisions relating to withheld 

(restricted) cranberries, and § 929.57 

provides authority for the Committee to 

establish, with the approval of the 

Secretary, outlets for withheld 

cranberries which are noncompetitive 

with outlets for unrestricted (free 

percentage) cranberries. 

Section 929.62 provides, in part, 

authority to require handlers to submit 

reports of cranberries acquired, held in 

inventory, quantity handled, total 

cranberries withheld from handling, the 

portion of such withheld cranberries on 

hand, and the quantity and manner of 

disposition of any such withheld 

cranberries diverted. Section 929.62(f) 

further provides authority for the 

Committee, with the approval of the 

Secretary, to collect other reports and 

information from handlers needed to 

perform its duties. 

This final rule uses these authorities 

to establish new §§ 929.157 and 

929.162. Section 929.157 establishes the 

procedures to be used for handler 

diversion when free and restricted 

percentages are instituted. Section 

929.162 requires handlers of 

cranberries, during years when free and 

restricted percentages are applied, to 

report to the Committee diversion plans 

and year-end reports, information on 

cranberries diverted and cranberries 

shipped to noncompetitive outlets, and 

other information to verify compliance 

with the program, using six specific 

Committee forms. 

The Committee recommended 

establishing free and restricted 

percentages under a handler 

withholding volume regulation for the 

2017–18 season in response to 

historically high inventory levels for 

cranberries. As this is the first time the 

Committee has used this volume 

regulation provision under the Order, it 

recognized the need to establish 

procedures outlining the diversion 

requirements for restricted fruit. 

Free percentage cranberries can be 

used to supply any available market, 

including juice, sweetened dried 

cranberries, sauce, and frozen 

cranberries. Restricted percentage 

cranberries can be diverted through 

disposal or utilized in markets that are 

noncompetitive with free cranberries. 

Possible outlets for restricted 

cranberries include, in part, for fresh 

export, except to Canada; charity; 

research and development projects; and 

any nonhuman food use. Handlers also 

have the option to divert processed 

products in lieu of fresh fruit to meet up 

to 50 percent of their restricted 

obligation. 

At the 2017 meetings in August, 

September, and October, the Committee 

discussed the handler diversion 

procedures and the associated reporting 

requirements necessary to help ensure 

compliance with a free and restricted 

percentage volume regulation. As a 

result, the Committee developed and 

approved six specific forms and related 

procedures to be used during seasons 

when free and restricted percentages are 

established for volume regulation. 

Committee members discussed the 

need for Committee staff to know how 

handlers plan to meet their restricted 

percentage obligation and if, at the end 

of the season, they met their diversion 

requirement. As a result, the Committee 

developed two specific forms to be 

added to the reporting requirements 

under the Order. 

With the first form, the Handler 

Withholding Report (CMC–JUN), 

handlers provide information on how 

they plan to meet their restricted 

percentage obligation. The form will be 

submitted to the Committee by June 1 

during years with established free and 

restricted percentages and requires the 

following information: The name and 

address of the handler, the amount of 

cranberries to be acquired, the amount 

of cranberries to be diverted by disposal, 

the amount of cranberries to be diverted 

to noncompetitive outlets, and the types 

of cranberry products to be withheld. 

The Committee will use this 

information to estimate the amount of 

fruit that will be taken off the market, 

the proposed disposition of the fruit, 

and as a starting point for tracking 

handler compliance. 

The second form, the Final Handler 

Withholding Report (CMC–AUG), will 

be submitted by the end of the crop 

year. The report requires the same 

information as the Handler Withholding 

Report but provides the Committee with 

the actual year-end seasonal totals. This 

form is due by August 31. The final 

report will be used to verify that 

handlers met their restricted percentage 

obligation. 

Handlers have several diversion 

options available to meet their restricted 

percentage obligation. One method of 

diversion available to handlers is the 

disposal of fresh cranberries or 

cranberry products. In its discussions, 

Committee members expressed concern 

regarding verifying the accuracy of the 

amount of fruit or processed product 

diverted using this method. The 

Committee recommended that all 

disposals take place under the 

supervision of a non-industry-related 

third party who will review the 

handler’s disposal documentation, 

witness the disposal whenever possible, 

and certify as to the completion of the 

disposal process. The Committee 

initially agreed to hire two inspectors to 

supervise and verify handler 

compliance. However, due to the size of 

the production area, the Committee 

hired four inspectors, one from each of 

the primary growing regions, who will 

perform these tasks. The inspection and 

verification costs will be paid by the 

handler. 

To facilitate this process, the 

Committee recommended establishing 

another form. This form, the Handler 

Disposal Certification (CMC–DISP), will 

be the primary form used to initiate, 

track, and certify this method of 

diversion during years in which a free 

and restricted percentage volume 

regulation has been established. The 

form will be used to notify the 

Committee of the handler’s intent to 

dispose of cranberries or cranberry 

products. Information required on the 

form include the handler’s name and 

address; the amount of fruit to be 

diverted; the type of cranberry product 

to be diverted; the amount of processed 

fruit diverted, if any; and the lot 

identification information. 

Upon receipt of the form, the 

Committee office will notify the 

inspector in the handler’s growing 

region. The inspector will contact the 

handler to schedule a date for the 

disposal to take place, usually within a 

week of receipt of the notification. The 

inspector will meet with the handler on 

that date to verify the documentation 

provided and, when possible, witness 

the disposal. 

The Committee recognized that, due 

to scheduling conflicts, the inspector 

may not be available to visually witness 

each disposal of restricted cranberries. 

Therefore, the Committee agreed that, 

should the inspector not be available to 

witness the diversion within seven 


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days, the handler may proceed with the 

disposal. The inspector will then verify 

and complete the certification upon the 

inspector’s next visit to the handler’s 

facility. If the cranberries or cranberry 

product were disposed of at a landfill, 

through composting, incineration, at a 

wastewater treatment facility, or any 

other site, the inspector may request 

receipts, visual proof, or any other 

additional information needed to 

support the disposal as reported on the 

form. Once the verification process is 

completed, the inspector will sign the 

certification section of the form, and 

return it to the Committee. 

Another method of diversion 

available is to divert cranberries or 

cranberry products to noncompetitive 

outlets. Section 929.57 specifies that 

cranberries withheld from handling may 

be disposed of only through diversion to 

such outlets as the Committee, with the 

approval of the Secretary, finds are 

noncompetitive to outlets for 

unrestricted (free percentage) 

cranberries. The Committee discussed 

various outlets and recommended the 

following: Foreign countries, except 

Canada; charitable institutions; any 

nonhuman food use; and research and 

development projects approved by the 

Committee dealing with the 

development of foreign and domestic 

markets, including but not limited to 

dehydration, radiation, freeze drying, or 

freezing of cranberries. The Committee 

further recommended that cranberries 

may not be converted into canned, 

frozen, or dehydrated cranberries or 

other cranberry products by any 

commercial process when being 

diverted to foreign countries. The 

specific outlets are being considered 

under a separate rulemaking action. 

The Agricultural Marketing Service 

(AMS) submitted and received OMB’s 

approval on the five initial forms. 

Handlers complete the forms and 

submit them to the Committee for 

purposes of tracking compliance with 

the handler withholding requirement. 

OMB approved the forms on October 16, 

2017, and assigned them OMB No. 

0581–0304. Upon full completion of the 

forms-approval process, AMS will seek 

to merge the five forms into the OMBapproved 0581–0189 Fruit Crops 

containing other forms related to the 

Federal marketing order for cranberries. 

Two specific reporting requirements 

relating to the diversion of fruit to 

noncompetitive outlets are added to part 

929: A Handler Application for Outlets 

for Withheld Fruit (CMC–OUT) and a 

Third-Party Confirmation of Receipt of 

Withheld Fruit (CMC–CONF). Should a 

handler elect to divert cranberries or 

cranberry products to noncompetitive 

outlets, the handler must first request 

Committee approval of the outlet or 

research project using the Handler 

Application for Outlets for Withheld 

Fruit prior to each disposal activity of 

this type. Information requested on the 

form includes, among other things, the 

handler’s name and address, 

information identifying the 

noncompetitive outlet, the amount and 

type of cranberry products to be 

diverted, and how the cranberries will 

be utilized. The Committee will review 

the information and approve or 

disapprove the diversion request. 

If the request is approved and the 

product is delivered, the receiving 

outlet needs to acknowledge receipt of 

the product by completing the ThirdParty Confirmation of Receipt of 

Withheld Fruit form, and the handler 

then returns the completed form to the 

Committee. 

The two above-described reporting 

requirements help track the disposition 

of withheld cranberries in 

noncompetitive outlets and facilitates 

the compliance process under the 

recommended handler withholding. 

The last form approved by the 

Committee provides handlers a method 

for appealing any decision made by the 

Committee relating to the diversion 

process. Should a handler disagree with 

a Committee decision, such as denying 

the request for approval of a 

noncompetitive outlet, or a 

determination that diversion could not 

be verified, the handler can appeal the 

decision by submitting a Handler 

Withholding Appeal form (CMC–APPL). 

The handler making the appeal is 

required to submit the form within 30 

days of receiving the determination 

from the Committee. This form includes 

information about why the handler is 

making the appeal and provides 

additional information to support the 

appeal. The appeal request is reviewed 

by an Appeals Subcommittee 

(Subcommittee) for re-consideration. 

The Subcommittee consists of two 

independent growers, two members 

from the major cooperative, and one 

public member. The handler will be 

notified of the Subcommittee’s 

determination within 30 days. If the 

appeal is denied by the Subcommittee, 

the handler has the option of appealing 

the decision to the Secretary within 15 

days after the notification of the 

Subcommittee’s findings. 

In order to enable the Committee to 

inform the industry of the information 

needed for handlers to manage their 

inventories in a way that complies with 

the industry-supported handler 

withholding program, the five initial 

forms were previously submitted to 

OMB for approval. These five forms 

(CMC–JUN, CMC–DISP, CMC–OUT, 

CMC–CONF and CMC–APPL) were 

approved by OMB on October 16, 2017, 

for use for a six-month period, 

beginning the date of approval. This 

final rule is necessary for the industry 

to use the forms beyond the six-month 

period. 

Establishing these handler diversion 

and reporting requirements facilitates 

the implementation of, and ensures 

compliance with, free and restricted 

percentages when recommended by the 

Committee. 

Final Regulatory Flexibility Analysis 

Pursuant to requirements set forth in 

the Regulatory Flexibility Act (RFA) (5 

U.S.C. 601–612), AMS has considered 

the economic impact of this action on 

small entities. Accordingly, AMS has 

prepared this final regulatory flexibility 

analysis. 

The purpose of the RFA is to fit 

regulatory actions to the scale of 

businesses subject to such actions in 

order that small businesses will not be 

unduly or disproportionately burdened. 

Marketing orders issued pursuant to the 

Act, and rules issued thereunder, are 

unique in that they are brought about 

through group action of essentially 

small entities acting on their own 

behalf. 

There are approximately 1,100 

cranberry growers in the regulated area 

and approximately 65 cranberry 

handlers subject to regulation under the 

Order. Small agricultural producers are 

defined by the Small Business 

Administration (SBA) as those having 

annual receipts of less than $750,000, 

and small agricultural service firms are 

defined as those whose annual receipts 

are less than $7,500,000 (13 CFR 

121.201). 

According to industry and Committee 

data, the average grower price for 

cranberries during the 2016–17 crop 

year was $23.50 per barrel, and total 

sales were around 9.5 million barrels. 

The value for cranberries that crop year 

totaled $223,250,000 ($23.50 per barrel 

multiplied by 9.5 million barrels). 

Taking the total value of production for 

cranberries and dividing it by the total 

number of cranberry growers (1,100) 

provides an average return per grower of 

$202,955. Based on USDA’s Market 

News reports, the average free on board 

(f.o.b.) price for cranberries was around 

$30.00 per barrel. Multiplying the f.o.b. 

price by total utilization of 9.5 million 

barrels results in an estimated handlerlevel cranberry value of $285 million. 

Dividing this figure by the number of 

handlers (65) yields an estimated 

average annual handler receipt of $4.3 


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32196 Federal Register / Vol. 83, No. 134 / Thursday, July 12, 2018 / Rules and Regulations 

million, which is below the SBA 

threshold for small agricultural service 

firms. Therefore, the majority of growers 

and handlers of cranberries may be 

classified as small entities. 

This final rule establishes handler 

diversion and reporting requirements 

under the Order. This final rule 

establishes procedures handlers will use 

to divert fruit through disposal or into 

noncompetitive outlets. The reporting 

requirements support the diversion 

procedures by providing the necessary 

documentation to help ensure 

compliance when a volume regulation is 

established. This rule establishes new 

§§ 929.157 and 929.162. The authority 

for this action is provided in §§ 929.54, 

929.56, 929.57, and 929.62. 

These actions could result in some 

additional costs to the industry. 

Specifically, handlers could incur some 

additional costs as a result of inspector 

verification and certification of the 

diversion process. In addition, requiring 

reports of cranberries acquired, handled, 

and withheld imposes an increase in the 

reporting burden on all cranberry 

handlers. However, the benefits are 

expected to outweigh the costs and 

increase in reporting burden. The 

provisions considered in this action will 

help facilitate the implementation of 

any recommended handler withholding 

volume regulation and help ensure 

compliance with the recommended 

regulation. Consequently, these changes 

will help provide important guidance 

during times when market conditions 

support the need for establishing 

volume regulation. 

The impact of this rule will be 

beneficial to growers and handlers. 

Establishing diversion procedures 

benefits the entire industry by ensuring 

handler diversion is conducted 

consistently and accurately by all 

handlers, which also helps ensure 

compliance with the handler 

withholding program. Authorizing 

various diversion outlets means 

handlers are not required to divert 

cranberries only through destruction. 

Instead, fruit can be utilized in 

noncompetitive outlets, such as for 

charitable purposes. The benefits of this 

rule are expected to be equally available 

to all cranberry growers and handlers, 

regardless of their size, and are greater 

than any associated costs. 

The Committee discussed other 

alternatives to this action, including 

using different methods of ensuring 

accurate diversion of restricted fruit. 

One method considered was allowing 

handlers to self-report their diversion of 

restricted fruit without a formal 

verification process. However, the 

Committee deemed this insufficient 

verification to ensure compliance with 

the program. Members were concerned 

that fruit could be re-routed to a 

different handling facility for 

processing, and without established 

verification procedures, the industry 

would not have confidence that 

restricted fruit was being properly 

diverted. The Committee also 

considered the value and importance of 

each of the forms and whether all were 

required. However, the Committee 

agreed each of the recommended forms 

provide important information for the 

industry and for administering the 

Order. Therefore, these alternatives 

were rejected. 

In accordance with the Paperwork 

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

Chapter 35), this collection has been 

submitted to OMB for approval. The five 

currently approved forms in 0581–0304 

and one additional form will be merged 

with forms currently approved under 

OMB No. 0581–0189, Fruit Crops. This 

final rule establishes the use of six new 

reporting requirements and six new 

Committee forms, which impose a total 

annual burden increase of 38.4 hours. 

The forms, ‘‘Handler Withholding 

Report,’’ ‘‘Handler Disposal 

Certification,’’ ‘‘Handler Application for 

Outlets for Withheld Fruit,’’ ‘‘ThirdParty Confirmation of Receipt of 

Withheld Fruit,’’ ‘‘Handler Withholding 

Appeal,’’ and ‘‘Final Handler 

Withholding Report,’’ require the 

minimum information necessary to 

effectively carry out the requirements of 

the Order. The information will enable 

the Committee to ensure compliance 

when a volume regulation is 

established. 

As with all Federal marketing order 

programs, reports and forms are 

periodically reviewed to reduce 

information requirements and 

duplication by industry and public 

sector agencies. 

As noted in the initial regulatory 

flexibility analysis, USDA has not 

identified any relevant Federal rules 

that duplicate, overlap, or conflict with 

this rule. Further, the public comment 

received concerning the proposal did 

not address the initial regulatory 

flexibility analysis. 

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. 

Further, the Committee’s meetings 

were widely publicized throughout the 

cranberry industry, and all interested 

persons were invited to attend the 

meetings and participate in Committee 

deliberations on all issues. Additionally, 

the Committee’s meetings held August 

31, September 15, and October 13, 2017, 

were public meetings, and all entities, 

both large and small, were able to 

express views on this issue. 

A proposed rule concerning this 

action was published in the Federal 

Register on February 15, 2018 (83 FR 

6800). Copies of the proposed rule were 

sent via email to Committee members 

and cranberry handlers. Finally, the 

proposed rule was made available 

through the internet by USDA and the 

Office of the Federal Register. A 60-day 

comment period ending April 16, 2018, 

was provided to allow interested 

persons to respond to the proposal. 

Two comments were received which 

did not address the merits of the 

proposed rule. Accordingly, no changes 

will be made to the rule as proposed 

based on the comments received. 

The proposed rule contained 

administrative revisions to the Order’s 

subpart headings to bring the language 

into conformance with the Office of 

Federal Register requirements. These 

revisions are not included in this rule as 

they were included in a final rule 

published in the Federal Register on 

April 4, 2018 (83 FR 14350). 

A small business guide on complying 

with fruit, vegetable, and specialty crop 

marketing agreements and orders may 

be viewed at: http://www.ams.usda.gov/ 

rules-regulations/moa/small-businesses. 

Any questions about the compliance 

guide should be sent to Richard Lower 

at the previously mentioned address in 

the FOR FURTHER INFORMATION CONTACT

section. 

After consideration of all relevant 

matter presented, including the 

information and recommendation of the 

Committee and other available 

information, it is hereby found that this 

rule, as hereinafter set forth, will tend 

to effectuate the declared policy of the 

Act. 

List of Subjects in 7 CFR Part 929 

Cranberries, Marketing agreements, 

Reporting and recordkeeping 

requirements. 

For the reasons set forth in the 

preamble, 7 CFR part 929 is amended as 

follows: 

PART 929—CRANBERRIES GROWN IN 

STATES OF MASSACHUSETTS, 

RHODE ISLAND, CONNECTICUT, NEW 

JERSEY, WISCONSIN, MICHIGAN, 

MINNESOTA, OREGON, 

WASHINGTON, AND LONG ISLAND IN 

THE STATE OF NEW YORK 

■ 1. The authority citation for part 929 

continues to read as follows: 


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Authority: 7 U.S.C. 601–674. 

■ 2. Add § 929.157 to read as follows: 

§ 929.157 Handler diversion. 

(a) Methods of diversion. Handlers 

may divert cranberries by disposing of 

cranberries or cranberry products. 

Diversion by disposal may take place 

prior to placing the cranberries into the 

processing line or after processing. 

Handlers may also divert cranberries or 

cranberry products to approved, 

noncompetitive outlets for withheld 

fruit. Whole berries or processed 

products diverted must come from the 

current crop year. Any information 

collected of a confidential and/or 

proprietary nature would be held in 

confidence pursuant to § 929.65. 

(1) Diversion through disposal. This 

type of diversion is to be carried out 

under the supervision of the Committee, 

and the cost of such supervision is to be 

paid by the handler. Handlers shall 

notify the Committee of their intent to 

dispose of cranberries or cranberry 

products using Form CMC–DISP as 

specified in § 929.162(c). Following 

notification, a Committee inspector will 

meet with the handler to verify the 

documentation provided and, when 

possible, witness the destruction. The 

Committee inspector may request 

receipts, visual proof, or any other 

information needed to support the 

disposal as reported. Once the 

verification process has been completed, 

the Committee inspector will sign the 

certification section of Form CMC–DISP 

and return it to the Committee. 

(2) Diversion through noncompetitive 

outlets. To divert cranberries or 

cranberry products to a noncompetitive 

outlet, handlers must apply to the 

Committee using Form CMC–OUT as 

specified in § 929.162(d) prior to each 

disposal activity of this type. The 

Committee will review the information 

and approve or disapprove the diversion 

request. Once the cranberries or 

cranberry products are delivered to the 

approved noncompetitive outlets, the 

Committee must receive satisfactory 

documentation of the transaction using 

Form CMC–CONF as specified in 

§ 929.162(e). 

(b) Committee notification and 

handler plan. Any handler intending to 

divert cranberries or cranberry products 

pursuant to § 929.54 must notify the 

Committee of such intent and provide a 

plan by June 1 that shows how the 

handler intends to meet the restricted 

percentage obligation. The handler shall 

submit this plan using Form CMC–JUNE 

as specified in the reporting 

requirements under § 929.162(a). The 

handler will have until August 31 to 

fulfill the plan, by which time the 

handler shall submit a final report 

detailing how the restricted percentage 

obligation was met using Form CMC– 

AUG as specified in § 929.162(b). 

(c) Request for review. (1) If a handler 

is dissatisfied with a determination 

made by the Committee which affects 

such handler, the handler may submit to 

the Committee within 30 days after 

receipt of the Committee’s 

determination, a request for a review by 

an appeals subcommittee composed of 

two independent growers and two 

cooperative representatives, as well as a 

public member. The appeals 

subcommittee shall be appointed by the 

Committee chairperson. The handler 

may forward with the request any 

pertinent materials for consideration of 

the appeal. 

(2) The subcommittee shall review the 

information submitted by the handler 

and render a decision within 30 days of 

receipt of such appeal. The 

subcommittee shall notify the handler of 

its decision, accompanied by the 

reasons for its conclusions and findings. 

(3) The handler may further appeal to 

the Secretary, within 15 days after 

notification of the subcommittee’s 

findings, if such handler is not satisfied 

with the appeals subcommittee’s 

decision. The Committee shall forward 

a file to the Secretary with all pertinent 

information related to the handler’s 

appeal. The Secretary shall inform the 

handler and all interested parties of the 

Secretary’s decision. All decisions by 

the Secretary are final. 

■ 3. Add § 929.162 to read as follows: 

§ 929.162 Handler diversion reports. 

(a) Handler withholding report. 

Handlers shall submit to the Committee, 

by June 1, a handler withholding report. 

The report shall be submitted using 

Form CMC–JUN and contain the 

following information: 

(1) The name and address of the 

handler; 

(2) The amount of cranberries 

acquired; 

(3) The amount of cranberries 

withheld by disposal; 

(4) The amount of cranberries 

diverted to noncompetitive outlets; 

(5) The form of cranberry products 

withheld; and 

(6) The total withholding obligation. 

(b) Handler Withholding Final Report. 

Handlers shall submit to the Committee, 

by August 31, a final handler 

withholding report. The final report 

shall be submitted using Form CMC– 

AUG and contain the following 

information: 

(1) The name and address of the 

handler; 

(2) The seasonal total of cranberries 

acquired; 

(3) The seasonal total of cranberries 

withheld by disposal; 

(4) The seasonal total of cranberries 

diverted to noncompetitive outlets; 

(5) The form of cranberry products 

withheld during the season; and 

(6) The total withholding obligation. 

(c) Handler disposal certification. 

Handlers shall submit to the Committee 

Form CMC–DISP for each lot of 

cranberries or cranberry products to be 

diverted through disposal. The form 

shall contain the following information: 

(1) Name and address of the handler; 

(2) Marketable cranberries in whole 

fruit or processed cranberries converted 

to whole fruit equivalent disposed of in 

this lot; 

(3) Form of cranberries; 

(4) Volume if in processed form; 

(5) Lot details; 

(6) Disposal site and method; and 

(7) Inspector certification of the 

completion of the disposal. 

(d) Handler application for outlets for 

withheld fruit. Handlers shall submit to 

the Committee Form CMC–OUT for 

approval for each lot of cranberries or 

cranberry products to be diverted to 

noncompetitive outlets in accordance 

with § 929.57. The form shall contain 

the following information: 

(1) Name and address of the handler; 

(2) Project type; 

(3) Product form; 

(4) Quantity of cranberries in whole 

fruit or processed cranberries converted 

to whole fruit equivalent diverted; 

(5) A description of the project and 

how the cranberries will be used. 

(e) Third-party confirmation of receipt 

of withheld fruit. Handlers shall submit 

to the Committee Form CMC–CONF for 

each diversion to a noncompetitive 

outlet to verify the receipt of the 

cranberries or cranberry product by the 

approved outlet. The form shall contain 

the following information: 

(1) Name and address of the handler; 

(2) Project type; 

(3) Product form; 

(4) Quantity of cranberries in whole 

fruit or processed cranberries converted 

to whole fruit equivalent utilized; and 

(5) Confirmation or documentation of 

receipt from the receiving outlet. 

(f) Handler withholding appeal. 

Handlers may appeal a determination 

made by the Committee relating to a 

handler withholding regulation using 

the appeals process outlined in 

§ 929.157(c) and Form CMC–APPL, 

which shall contain the following 

information: 

(1) Name and address of the handler; 

(2) Reason for appeal; and 

(3) Information in support of appeal. 


amozie on DSK3GDR082PROD with RULES
32198 Federal Register / Vol. 83, No. 134 / Thursday, July 12, 2018 / Rules and Regulations 

Dated: July 9, 2018. 

Bruce Summers, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. 2018–14939 Filed 7–11–18; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2018–0588; Product 

Identifier 2017–NM–105–AD; Amendment 

39–19328; AD 2018–14–08] 

RIN 2120–AA64 

Airworthiness Directives; The Boeing 

Company Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule; request for 

comments. 

SUMMARY: We are adopting a new 

airworthiness directive (AD) for certain 

The Boeing Company Model 777–200LR 

series airplanes. This AD requires 

revising certain documents to provide 

revised operating limitations. For 

certain airplanes, modification of the 

water and fuel scavenge systems in the 

fuel tanks, electrical changes in the 

main equipment center, and installation 

of new electrical load management 

system (ELMS2) software is an 

acceptable alternative to the documents 

revision. This AD was prompted by 

reports of unreliable performance of the 

water and fuel scavenge systems. We are 

issuing this AD to address the unsafe 

condition on these products. 

DATES: This AD is effective July 27, 

2018. 

The Director of the Federal Register 

approved the incorporation by reference 

of a certain publication listed in this AD 

as of July 27, 2018. 

We must receive comments on this 

AD by August 27, 2018. 

ADDRESSES: You may send comments, 

using the procedures found in 14 CFR 

11.43 and 11.45, by any of the following 

methods: 

• Federal eRulemaking Portal: Go to 

http://www.regulations.gov. Follow the 

instructions for submitting comments. 

• Fax: 202–493–2251. 

• Mail: U.S. Department of 

Transportation, Docket Operations, 

M–30, West Building Ground Floor, 

Room W12–140, 1200 New Jersey 

Avenue SE, Washington, DC 20590. 

• Hand Delivery: Deliver to Mail 

address above between 9 a.m. and 5 

p.m., Monday through Friday, except 

Federal holidays. 

For service information identified in 

this final rule, contact Boeing 

Commercial Airplanes, Attention: 

Contractual & Data Services (C&DS), 

2600 Westminster Blvd., MC 110–SK57, 

Seal Beach, CA 90740–5600; telephone 

562–797–1717; internet https://

www.myboeingfleet.com. You may view 

this service information at the FAA, 

Transport Standards Branch, 2200 

South 216th St., Des Moines, WA. For 

information on the availability of this 

material at the FAA, call 206–231–3195. 

It is also available on the internet at 

http://www.regulations.gov by searching 

for and locating Docket No. FAA–2018– 

0588. 

Examining the AD Docket 

You may examine the AD docket on 

the internet at http://

www.regulations.gov by searching for 

and locating Docket No. FAA–2018– 

0588; or in person at the Docket 

Management Facility between 9 a.m. 

and 5 p.m., Monday through Friday, 

except Federal holidays. The AD docket 

contains this final rule, the regulatory 

evaluation, any comments received, and 

other information. The street address for 

the Docket Office (phone: 800–647– 

5527) is in the ADDRESSES section. 

Comments will be available in the AD 

docket shortly after receipt. 

FOR FURTHER INFORMATION CONTACT: 

Kevin Nguyen, Aerospace Engineer, 

Propulsion Section, FAA, Seattle ACO 

Branch, 2200 South 216th St., Des 

Moines, WA 98198; phone and fax: 206– 

231–3555; email: Kevin.Nguyen@

faa.gov. 

SUPPLEMENTARY INFORMATION: 

Discussion 

Operators have reported unreliable 

performance of the water and fuel 

scavenge systems. During flight, any 

water in the fuel can sink to the bottom 

of the fuel tank. This water can enter the 

fuel scavenge inlets and can then freeze 

as it travels from the body center fuel 

tank into the colder fuel scavenge tubes 

in the left and right cheek center fuel 

tanks (outboard of the side of body ribs). 

The frozen water can restrict the flow of 

scavenge fuel from the center fuel tank 

to the main fuel tanks, causing the fuel 

flow to decrease or stop. When this 

occurs, as much as 700 pounds of fuel 

can remain unavailable during flight. If 

the flightcrew is not aware that this fuel 

is unavailable and the fuel quantity 

decreases to the quantity of the 

unavailable fuel, then fuel exhaustion 

will occur, which could lead to 

subsequent power loss of all engines 

due to loss of capability to scavenge fuel 

in the center fuel tank. 

Related Rulemaking 

We issued AD 2016–11–03, 

Amendment 39–18530 (81 FR 34867, 

June 1, 2016) (‘‘AD 2016–11–03’’), that 

applied to certain Boeing Model 777– 

200LR series airplanes equipped with or 

without auxiliary fuel tanks. For 

airplanes with auxiliary fuel tanks, 

variable numbers WD049–WD053 

inclusive only, AD 2016–11–03 requires 

modification of the water and fuel 

scavenge systems after removal of the 

auxiliary fuel tanks. This AD requires 

incorporation of revised operating 

limitations for those airplanes, which 

terminates the associated requirements 

of AD 2016–11–03. This AD also 

provides the option of modifying the 

water and fuel scavenge systems in the 

fuel tanks, making electrical changes in 

the main equipment center, and 

installing new ELMS2 software after 

removal of the auxiliary fuel tanks. 

Either compliance method terminates 

the requirements of paragraphs (g), (h), 

and (i) of AD 2016–11–03 for those 

airplanes. 

Additionally, paragraph (g) of this AD 

requires a revision to certain documents 

to provide revised operating limitations 

for airplane variable numbers WD011 

through WD015 inclusive and WD016 

through WD018 inclusive. These 

airplanes are not affected by AD 2016– 

11–03, which refers to Boeing Special 

Attention Service Bulletin 777–28– 

0078, Revision 1, dated April 27, 2015, 

for the applicability. 

Airplane variable numbers WD011 

through WD015 inclusive are included 

in the effectivity of Boeing Special 

Attention Service Bulletin 777–28– 

0078, Revision 3, dated December 19, 

2017; therefore, this AD provides a 

modification of the water and fuel 

scavenge systems in the fuel tanks, 

electrical changes in the main 

equipment center, and installation of 

new ELMS2 software as an acceptable 

alternative to the documents revision. 

However, there is no approved service 

information for airplane variable 

numbers WD016 through WD018 

inclusive for the modification of the 

water and fuel scavenge systems in the 

fuel tanks, electrical changes in the 

main equipment center, and installation 

of new ELMS2 software; therefore, there 

is no alternative to the documents 

revision specified in this AD for these 

airplanes. 

Related Service Information Under 

1 CFR Part 51 

We reviewed Boeing Special 

Attention Service Bulletin 777–28– 

0078, Revision 3, dated December 19, 

2017. The service information describes 


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