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contains regulatory documents having general

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Rules and Regulations Federal Register

20897 

Vol. 75, No. 77 

Thursday, April 22, 2010 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 989 

[Doc. No. AMS–FV–09–0075 and FV10–989– 

1 IFR] 

Raisins Produced From Grapes Grown 

in California; Final Free and Reserve 

Percentages for 2009–10 Crop Natural 

(Sun-Dried) Seedless Raisins 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Interim rule with request for 

comments. 

SUMMARY: This rule establishes final 

volume regulation percentages for 2009– 

10 crop Natural (sun-dried) Seedless 

(NS) raisins covered under the Federal 

marketing order for California raisins 

(order). The order regulates the handling 

of raisins produced from grapes grown 

in California and is locally administered 

by the Raisin Administrative Committee 

(committee). The volume regulation 

percentages are 85 percent free and 15 

percent reserve. The percentages are 

intended to help stabilize raisin 

supplies and prices, and strengthen 

market conditions. 

DATES: Effective April 23, 2010. The 

volume regulation percentages apply to 

acquisitions of NS raisins from the 

2009–10 crop until the reserve raisins 

from that crop are disposed of under the 

marketing order. Comments received by 

May 24, 2010, will be considered prior 

to issuance of a final rule. 

ADDRESSES: Interested persons are 

invited to submit written comments 

concerning this rule. Comments must be 

sent to the Docket Clerk, Marketing 

Order Administration Branch, Fruit and 

Vegetable Programs, AMS, USDA, 1400 

Independence Avenue, SW., STOP 

0237, Washington, DC 20250–0237; Fax: 

(202) 720–8938; or Internet: http:// 

www.regulations.gov. All comments 

should reference the document number 

and the date and page number of this 

issue of the Federal Register and will be 

made available for public inspection in 

the Office of the Docket Clerk during 

regular business hours, or can be viewed 

at: http://www.regulations.gov. All 

comments submitted in response to this 

rule will be included in the record and 

will be made available to the public. 

Please be advised that the identity of the 

individuals or entities submitting the 

comments will be made public on the 

Internet at the address provided above. 

FOR FURTHER INFORMATION CONTACT: 

Terry Vawter, Senior Marketing 

Specialist, or Kurt J. Kimmel, Regional 

Manager, California Marketing Field 

Office, Marketing Order Administration 

Branch, Fruit and Vegetable Programs, 

AMS, USDA; Telephone: (559) 487– 

5901; Fax: (559) 487–5906; or E-mail: 

Terry.Vawter@ams.usda.gov or 

Kurt.Kimmel@ams.usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Antoinette 

Carter, Marketing Order Administration 

Branch, Fruit and Vegetable Programs, 

AMS, USDA, 1400 Independence 

Avenue, SW., STOP 0237, Washington, 

DC 20250–0237; Telephone: (202) 720– 

2491; Fax: (202) 720–8938; or E-mail: 

Antoinette.Carter@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This rule 

is issued under Marketing Agreement 

and Order No. 989, both as amended (7 

CFR part 989), regulating the handling 

of raisins produced from grapes grown 

in California, hereinafter referred to as 

the ‘‘order.’’ 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 Department of Agriculture 

(USDA) is issuing this rule in 

conformance with Executive Order 

12866. 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. Under the order provisions now 

in effect, final free and reserve 

percentages may be established for 

raisins acquired by handlers during the 

crop year. This rule establishes final free 

and reserve percentages for NS raisins 

for the 2009–10 crop year, which began 

August 1, 2009, and ends July 31, 2010. 

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 rule establishes final volume 

regulation percentages for the 2009–10 

crop for NS raisins covered under the 

order. The volume regulation 

percentages are 85 percent free and 15 

percent reserve. Free tonnage raisins 

may be sold by handlers to any market. 

Reserve raisins must be held in a pool 

for the account of the committee and are 

disposed of through various programs 

authorized under the order. For 

example, reserve raisins may be sold by 

the committee to handlers for free use 

or to replace part of the free tonnage 

raisins they exported; used in diversion 

programs; carried over as a hedge 

against a short crop; or disposed of in 

other outlets not competitive with those 

for free tonnage raisins, such as 

government purchase, distilleries, or 

animal feed. 

The volume regulation percentages 

are intended to help stabilize raisin 

supplies and prices, and strengthen 

market conditions. The committee 

unanimously recommended final 

percentages for NS raisins on October 6, 

2009. 

Computation of Trade Demand 

Section 989.54 of the order prescribes 

procedures and time frames to be 

followed in establishing volume 

regulation. This includes methodology 

used to calculate free and reserve 

percentages. Pursuant to § 989.54(a) of 

the order, the committee met on August 

13, 2009, to review shipment and 

inventory data, and other matters 

relating to the supplies of raisins of all 

varietal types. The committee computed 

a trade demand for each varietal type for 

which a free tonnage percentage might 

be recommended. Trade demand is 


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20898 Federal Register / Vol. 75, No. 77 / Thursday, April 22, 2010 / Rules and Regulations 

computed using a formula specified in 

the order and, for each varietal type, is 

equal to 90 percent of the prior year’s 

shipments of free tonnage and reserve 

tonnage raisins sold for free use into all 

market outlets, adjusted by subtracting 

the carry-in on August 1 of the current 

crop year, and adding the desirable 

carryout at the end of that crop year. As 

specified in § 989.154(a), the desirable 

carryout for NS raisins shall equal the 

total shipments of free tonnage during 

August and September for each of the 

past 5 crop years, converted to a natural 

condition basis, dropping the high and 

low figures, and dividing the remaining 

sum by three, or 60,000 natural 

condition tons, whichever is higher. For 

all other varietal types, the desirable 

carryout shall equal the total shipments 

of free tonnage during August, 

September and one-half of October for 

each of the past 5 crop years, converted 

to a natural condition basis, dropping 

the high and low figures, and dividing 

the remaining sum by three. In 

accordance with these provisions, the 

committee computed and announced 

the 2009–10 trade demand for NS 

raisins at 234,769 tons as shown below. 

COMPUTED TRADE DEMAND

CALCULATION

[Natural condition tons] 

NS raisins 

Prior year’s shipments .............. 335,103 

Multiplied by 90 percent ........... 0.90 

Adjusted base ........................... 301,593 

Minus carry-in inventory ........... 126,824 

Plus desirable carryout ............. 60,000 

Computed NS trade Demand ... 234,769 

Computation of Volume Regulation 

Percentages 

Section 989.54(b) of the order requires 

that the committee announce, on or 

before October 5, preliminary crop 

estimates and determine whether 

volume regulation is warranted for the 

varietal types for which it computed a 

trade demand. That section allows the 

committee to extend the October 5 date 

up to 5 business days if warranted by a 

late crop. The 2009 crop harvest was 

late. If the committee determines that 

volume regulation is warranted, it must 

also compute and announce preliminary 

free and reserve percentages. The 

committee met on October 6, 2009, and 

announced a 2009–10 crop estimate of 

275,000 tons for NS raisins pursuant to 

§ 989.54(b). NS raisins are the major 

varietal type of California raisin. The 

crop estimate of 275,000 tons is higher 

than the computed trade demand of 

234,769 tons. Thus, it was determined 

that volume regulation for NS raisins 

was warranted. Preliminary volume 

regulation percentages computed to 73 

percent free and 27 percent reserve to 

release 85 percent of the computed trade 

demand. 

Section 989.54(c) provides that the 

committee may modify the preliminary 

free and reserve percentages prior to 

February 15 by announcing interim 

percentages which release less than the 

trade demand. Section 989.54(d) 

requires the committee to recommend 

final percentages no later than February 

15 which will tend to release the full 

trade demand. 

Pursuant to § 989.54(c), at the same 

meeting on October 6, 2009, the 

committee announced interim volume 

regulation percentages for NS raisins to 

release less than the full trade demand 

at 84.75 percent free and 15.25 percent 

reserve, and recommended final volume 

regulation percentages of 85 percent free 

and 15 percent reserve pursuant to 

§ 989.54(d). The committee’s 

calculations and determinations to 

arrive at final percentages for NS raisins 

are shown in the table below: 

FINAL VOLUME REGULATION

PERCENTAGES CALCULATIONS

[Natural condition tons] 

NS raisins 

Trade demand .......................... 234,769 

Divided by crop estimate .......... 275,000 

Equals the free percentage ...... 85 

100 

Minus free percentage .............. 85 

Equals the reserve percentage 15 

USDA’s ‘‘Guidelines for Fruit, 

Vegetable, and Specialty Crop 

Marketing Orders’’ (Guidelines) specify 

that 110 percent of recent years’ sales 

should be made available to primary 

markets each season for marketing 

orders utilizing reserve pool authority. 

This goal is expected to be exceeded for 

the 2010 crop year for NS raisins. The 

application of a free percentage of 85 

percent, combined with release of 

reserve raisins to handlers during the 

crop year and handler carry-in 

inventories, is estimated to result in an 

available supply of 392,485 tons of 

natural condition NS raisins, which 

equates to 124 percent of the 2008–09 

shipments of 317,718 tons. 

Initial Regulatory Flexibility Analysis 

Pursuant to requirements set forth in 

the Regulatory Flexibility Act (RFA) (5 

U.S.C. 601–612), the Agricultural 

Marketing Service (AMS) has 

considered the economic impact of this 

action on small entities. Accordingly, 

AMS has prepared this initial regulatory 

flexibility analysis. 

The purpose of the RFA is to fit 

regulatory actions to the scale of 

business 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. Thus, both statutes have small 

entity orientation and compatibility. 

There are approximately 23 handlers 

of California raisins who are subject to 

regulation under the order and 

approximately 3,000 raisin producers in 

the regulated area. Small agricultural 

service firms are defined by the Small 

Business Administration (SBA) (13 CFR 

121.201) as those having annual receipts 

of less than $7,000,000, and small 

agricultural producers as those having 

annual receipts of less than $750,000. 

No more than 7 handlers and a majority 

of producers of California raisins may be 

classified as small entities. 

Since 1949, the California raisin 

industry has operated under a Federal 

marketing order. The order contains 

authority to limit the portion of a given 

year’s crop that can be marketed freely 

in any outlet by raisin handlers. This 

volume regulation mechanism is used to 

stabilize supplies and prices, and to 

strengthen market conditions. If the 

primary market (the normal domestic 

market) is over-supplied with raisins, 

grower prices decline substantially. 

Pursuant to § 989.54(d) of the order, 

this rule establishes final volume 

regulation percentages for the 2009–10 

crop year for NS raisins. The volume 

regulation percentages are 85 percent 

free and 15 percent reserve. Free 

tonnage raisins may be sold by handlers 

to any market. Reserve raisins must be 

held in a pool for the account of the 

committee and are disposed of through 

certain programs authorized under the 

order. Volume regulation is warranted 

this season because the crop estimate of 

275,000 tons is significantly higher than 

the 234,769 ton trade demand. 

The volume regulation procedures 

have helped the industry address its 

marketing problems by keeping supplies 

in balance with domestic and export 

market needs, and strengthening market 

conditions. The volume regulation 

procedures fully supply the domestic 

and export markets, provide for market 

expansion, and help reduce the burden 

of oversupplies in the domestic market. 

Raisin grapes are a perennial crop, so 

production in any year is dependent 


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Federal Register / Vol. 75, No. 77 / Thursday, April 22, 2010 / Rules and Regulations 20899 

upon plantings made in earlier years. 

The sun-drying method of producing 

raisins involves considerable risk 

because of variable weather patterns. 

Even though the product and the 

industry are viewed as mature, the 

industry has experienced considerable 

change over the last several decades. 

Before the 1975–76 crop year, more than 

50 percent of the raisins were packed 

and sold directly to consumers. Now, 

about 63 percent of the raisins are sold 

in bulk. This means that raisins are now 

sold to consumers mostly as an 

ingredient in another product such as 

cereal and baked goods. In addition, for 

a few years in the early 1970s, over 50 

percent of the raisin grapes were sold 

fresh to the wine market for crushing. 

Since then, the percentage of raisinvariety grapes sold to the wine industry 

has decreased. 

California’s grapes are classified into 

three groups—table grapes, wine grapes, 

and raisin-variety grapes. Raisin-variety 

grapes are the most versatile of the three 

types. They can be marketed as fresh 

grapes, crushed for juice in the 

production of wine or juice concentrate, 

or dried into raisins. Annual 

fluctuations in the fresh grape, wine, 

and concentrate markets, as well as 

weather-related factors, cause 

fluctuations in raisin supply. This type 

of situation introduces a certain amount 

of variability into the raisin market. 

Although the size of the crop for raisinvariety grapes may be known, the 

amount dried for raisins depends on the 

demands for crushing. This makes the 

marketing of raisins a more difficult 

task. These supply fluctuations can 

result in producer price instability and 

disorderly market conditions. 

Volume regulation is helpful to the 

raisin industry because it lessens the 

impact of such fluctuations and 

contributes to orderly marketing. For 

example, producer prices for NS raisins 

remained fairly steady between the 

1993–94 through the 1997–98 crop 

years, although production varied. As 

shown in the table below, during those 

years, production varied from a low of 

272,063 tons in 1996–97 to a high of 

387,007 tons in 1993–94. 

According to committee data, the total 

producer return per ton during those 

years, which includes proceeds from 

both free tonnage plus reserve pool 

raisins, has varied from a low of $904.60 

in 1993–94 to a high of $1,049.20 in 

1996–97. Producer prices for the 1998– 

99 and 1999–2000 crop years increased 

significantly due to back-to-back short 

crops during those years. Record large 

crops followed and producer prices 

dropped dramatically for the 2000–01 

through 2003–04 crop years, as 

inventories grew while demand 

stagnated. However, as noted below, 

producer prices were higher for the 

2004–05 through the 2008–09 crop 

years. Crop prices fluctuate depending 

upon variable winery and table grape 

demand for raisin variety grapes. 

NATURAL SEEDLESS (NATURAL CONDITION) DELIVERIES, FIELD PRICES AND PRODUCER PRICES

Crop year Deliveries 

(tons) 

Field prices 

(per ton) 1

Producer prices 

(per ton) 

2008–09 ....................................................................................... 364,268 $1,310.00 2 $1,139.70 

2007–08 ....................................................................................... 329,288 1,210.00 2 1,028.50 

2006–07 ....................................................................................... 282,999 1,210.00 1 1,089.00 

2005–06 ....................................................................................... 319,126 1,210.00 1 998.25 

2004–05 ....................................................................................... 265,262 1,210.00 3 1,210.00 

2003–04 ....................................................................................... 296,864 810.00 567.00 

2002–03 ....................................................................................... 388,010 745.00 491.20 

2001–02 ....................................................................................... 377,328 880.00 650.94 

2000–01 ....................................................................................... 432,616 877.50 603.36 

1999–2000 ................................................................................... 299,910 1,425.00 1,211.25 

1998–99 ....................................................................................... 240,469 1,290.00 3 1,290.00 

1997–98 ....................................................................................... 382,448 1,250.00 946.52 

1996–97 ....................................................................................... 272,063 1,220.00 1,049.20 

1995–96 ....................................................................................... 325,911 1,160.00 1,007.19 

1994–95 ....................................................................................... 378,427 1,160.00 928.27 

1993–94 ....................................................................................... 387,007 1,155.00 904.60 

1Field prices for NS raisins are established by the Raisin Bargaining Association, and are also referred to in the industry as the ‘‘free tonnage 

price’’ for raisins. 2 Return-to-date, reserve pool still open. 

3 No volume regulation. 

There are essentially two broad 

markets for raisins—domestic and 

export. Domestic shipments generally 

increased over the years. Although 

domestic shipments decreased from a 

high of 204,805 packed tons during the 

1990–91 crop year to a low of 156,325 

packed tons in 1999–2000 crop year, 

they increased from 174,117 packed 

tons during the 2000–01 crop year to 

193,609 packed tons during the 2007–08 

crop year and decreased to 191,929 

packed tons during the 2008–09 crop 

year. Export shipments ranged from a 

high of 107,931 packed tons in the 

1991–92 crop year to a low of 91,599 

packed tons in the 1999–2000 crop year. 

Since that time, export shipments 

increased to 106,755 tons of raisins 

during the 2004–05 crop year, fell to 

101,684 tons in 2006–07 crop year, and 

again increased to 142,541 tons in 2007– 

08 crop year. This significant increase 

was due to a short crop in Turkey. 

Export shipments remained relatively 

high in 2008–09 at 125,789 tons. 

The per capita consumption of raisins 

has declined from 2.07 pounds in 1988 

to 1.46 pounds in 2007. This decrease 

is consistent with the decrease in the 

per capita consumption of dried fruits 

in general, which may be due to the 

increasing year-round availability of 

most types of fresh fruit throughout the 

year. 

While the overall demand for raisins 

has increased in four of the last five 

years (as reflected in increased 

commercial shipments), production has 

been decreasing. Deliveries of NS dried 

raisins from producers to handlers 

reached an all-time high of 432,616 tons 

in the 2000–01 crop year. This large 

crop was preceded by two short crop 

years; deliveries were 240,469 tons in 

1998–99 crop year and 299,910 tons in 

1999–2000 crop year. Deliveries for the 

2000–01 crop year soared to a record 

level because of increased bearing 

acreage and yields. Deliveries for the 


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20900 Federal Register / Vol. 75, No. 77 / Thursday, April 22, 2010 / Rules and Regulations 

2001–02 crop year were at 377,328 tons, 

388,010 tons for the 2002–03 crop year, 

296,864 tons for the 2003–04 crop year, 

and 265,262 tons for the 2004–05 crop 

year. 

After three crop years of high 

production and a large 2001–02 carry-in 

inventory, the industry diverted raisin 

production to other uses or removed 

bearing vines. Diversions/removals 

totaled 38,000 acres in 2001; 27,000 

acres in 2002; and 8,000 acres of vines 

in 2003. These actions resulted in 

declining deliveries of 296,864 tons for 

the 2003–04 crop year and 265,262 tons 

for the 2004–05 crop year. Although 

deliveries increased in 2005–06 crop 

year to 319,126 tons, this may have been 

because fewer growers opted to contract 

with wineries, as raisin variety grapes 

crushed in 2005–06 crop year decreased 

by 161,000 green tons, the equivalent of 

over 40,000 tons of raisins. In the 2006– 

07 crop year, raisin deliveries were 

again less than 300,000 tons at 282,999 

tons and increased to 329,288 tons in 

2007–08 crop year. The 2008–09 crop 

year was considered to be a good crop 

and the quality of the crop has a direct 

bearing on the overall production with 

364,268 tons of NS raisins delivered. 

Raisins are generally marketed at 

relatively lower price levels in the more 

elastic export market than in the more 

inelastic domestic market. This results 

in a larger volume of raisins being 

marketed and enhances producer 

returns. In addition, this system allows 

the U.S. raisin industry to be more 

competitive in export markets. 

The reserve percentage limits 

provides for raisins that handlers can 

market as free tonnage. Based on the 

2009–10 crop year estimate of 275,000 

tons, the 15 percent reserve would limit 

the total free tonnage to 233,750 natural 

condition tons (.85 × the 275,000 ton 

crop). Adding the estimated figure of 

41,250 tons of raisins offered to 

handlers through the 10 + 10 program 

to the 233,750 tons of free tonnage, plus 

126,824 tons of carry-in inventory, plus 

the 12,137 tons of 2008–09 NS reserve 

pool raisins released in the 2009–10 

crop year results in a total supply of 

413,961 tons of natural condition 

raisins. 

With volume regulation, producer 

prices are expected to be higher than 

without volume regulation. This price 

increase is beneficial to all producers 

regardless of size, and enhances 

producers’ total revenues in comparison 

to no volume regulation. Establishing a 

reserve allows the industry to help 

stabilize supplies in both domestic and 

export markets, while improving returns 

to producers. 

Free and reserve percentages are 

established by varietal type; and, 

generally, established in years when the 

supply exceeds the trade demand by a 

large enough margin that the committee 

believes volume regulation is necessary 

to maintain market stability. 

Accordingly, in assessing whether to 

apply volume regulation or, as an 

alternative, not to apply such regulation, 

the committee determined that volume 

regulation is warranted this season for 

only one of the nine raisin varietal types 

defined under the order. 

The free and reserve percentages 

established by this rule release the full 

trade demand and apply uniformly to 

all handlers in the industry, regardless 

of size. For NS raisins, with the 

exception of the 1998–99 and 2004–05 

crop years, small and large raisin 

producers and handlers have been 

operating under volume regulation 

percentages every year since the 1983– 

84 crop year. There are no known 

additional costs incurred by small 

handlers that are not incurred by large 

handlers. The stabilizing effects of the 

volume regulations impact small and 

large handlers positively by helping 

them maintain and expand markets 

even though raisin supplies fluctuate 

widely from season to season. Likewise, 

price stability positively impacts small 

and large producers by allowing them to 

better anticipate the revenues their 

raisins will generate. 

There are some reporting, 

recordkeeping and other compliance 

requirements under the order. The 

reporting and recordkeeping 

requirements are necessary for 

compliance purposes and for 

developing statistical data for 

maintenance of the program. The 

requirements are the same as those 

applied in past seasons. Thus, this 

action imposes no additional reporting 

or recordkeeping requirements on either 

small or large raisin handlers. The forms 

require information which is readily 

available from handler records and 

which can be provided without data 

processing equipment or trained 

statistical staff. The information 

collection and recordkeeping 

requirements have been previously 

approved by the Office of Management 

and Budget (OMB) under OMB Control 

No. 0581–0178, Vegetable and Specialty 

Crops. 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. 

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. 

In addition, USDA has not identified 

any relevant Federal rules that 

duplicate, overlap, or conflict with this 

rule. 

Further, the committee’s meetings 

were widely publicized throughout the 

raisin industry and all interested 

persons were invited to attend the 

meetings and participate in the 

committee’s deliberations. Like all 

committee meetings, the August 13 and 

October 6, 2009, meetings were public 

meetings and all entities, both large and 

small, were able to express their views 

on this issue. 

Also, the committee has a number of 

appointed subcommittees to review 

certain issues and make 

recommendations to the committee. The 

committee’s Reserve Sales and 

Marketing Subcommittee met on August 

13 and October 6, 2009, and discussed 

these issues in detail. Those meetings 

were also public meetings, and both 

large and small entities were 

encouraged to participate and express 

their views. Finally, interested persons 

are invited to submit comments on this 

interim rule, including the regulatory 

and informational impacts of this action 

on small businesses. 

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/ 

AMSv1.0/ams.fetchTemplateData.do?

template=TemplateN&page=Marketing

OrdersSmallBusinessGuide. Any 

questions about the compliance guide 

should be sent to Antoinette Carter at 

the previously mentioned address in the 

FOR FURTHER INFORMATION CONTACT

section. 

This rule invites comments on the 

establishment of final volume regulation 

percentages for the 2009–10 crop year 

for NS raisins covered under the order. 

Any comments received will be 

considered prior to finalization of this 

rule. 

After consideration of all relevant 

material presented, including the 

information and recommendation 

submitted by 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. 

Pursuant to 5 U.S.C. 553, it is also 

found and determined upon good cause 

that it is impracticable, unnecessary, 

and contrary to the public interest to 

give preliminary notice prior to putting 

this rule into effect, and that good cause 

exists for not postponing the effective 


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Federal Register / Vol. 75, No. 77 / Thursday, April 22, 2010 / Rules and Regulations 20901 

date of this rule until 30 days after 

publication in the Federal Register 

because: (1) The relevant provisions of 

this part require that the percentages 

designated herein for the 2009–10 crop 

year apply to all NS raisins acquired 

during the crop year; (2) handlers are 

aware of this action, which was 

unanimously recommended at a public 

meeting, and need no additional time to 

comply with these percentages; and (3) 

this interim rule provides a 30-day 

comment period, and all comments 

timely received will be considered prior 

to finalization of this rule. Also, for the 

reasons stated above, a 30-day comment 

period is deemed appropriate. 

List of Subjects in 7 CFR Part 989 

Grapes, Marketing agreements, 

Raisins, Reporting and recordkeeping 

requirements. 

■ For the reasons set forth in the 

preamble, 7 CFR part 989 is amended to 

read as followed: 

PART 989—RAISINS PRODUCED 

FROM GRAPES GROWN IN 

CALIFORNIA 

■ 1. The authority citation for 7 CFR 

part 989 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. Section 989.257 is revised to read 

as follows: 

§ 989.257 Final free and reserve 

percentages. 

(a) The final percentages for the 

respective varietal type(s) of raisins 

acquired by handlers during the crop 

year beginning August 1, which shall be 

free tonnage and reserve tonnage, 

respectively, are designated as follows: 

Crop year Varietal type Free 

percentage 

Reserve 

percentage 

2003–04 ............ Natural (sun-dried) Seedless ................................................................................................ 70 30 

2005–06 ............ Natural (sun-dried) Seedless ................................................................................................ 82 .50 17 .50 

2006–07 ............ Natural (sun-dried) Seedless ................................................................................................ 90 10 

2007–08 ............ Natural (sun-dried) Seedless ................................................................................................ 85 15 

2008–09 ............ Natural (sun-dried) Seedless ................................................................................................ 87 13 

2009–10 ............ Natural (sun-dried) Seedless ................................................................................................ 85 15 

(b) The volume regulation percentages 

apply to acquisitions of the varietal type 

of raisins for the applicable crop year 

until the reserve raisins for that crop are 

disposed of under the marketing order. 

Dated: April 16, 2010. 

Rayne Pegg, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. 2010–9241 Filed 4–21–10; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF ENERGY 

Federal Energy Regulatory 

Commission 

18 CFR Part 38 

[Docket No. RM05–5–017; Order No. 

676–F] 

Standards for Business Practices and 

Communication Protocols for Public 

Utilities 

Issued April 15, 2010. 

AGENCY: Federal Energy Regulatory 

Commission. 

ACTION: Final rule. 

SUMMARY: The Federal Energy 

Regulatory Commission (Commission) is 

amending its regulations at 18 CFR 38.2 

to incorporate by reference business 

practice standards adopted by the 

Wholesale Electric Quadrant of the 

North American Energy Standards 

Board (NAESB) to categorize various 

demand response products and services 

and to support the measurement and 

verification of these products and 

services in wholesale electric energy 

markets. This rule ensures that 

participants in wholesale energy 

markets where demand response 

products are administered receive 

standardized access to information that 

will enable them to participate in those 

markets and addresses performance 

evaluation methods appropriate to use 

for demand response products. This rule 

facilitates the ability of demand 

response providers to participate in 

electricity markets, reducing transaction 

costs and providing an opportunity for 

more customers to participate in these 

programs, especially customers that 

operate in more than one organized 

market. It also provides a foundation for 

further business practice 

standardization efforts, and participants 

in the NAESB process can use these 

standards to identify those elements for 

which standardization would be 

beneficial. Further, adoption of 

measurement and verification standards 

will improve the methods and 

procedures for measuring accurately the 

performance of demand response 

resources and assist in monitoring 

demand response services for potential 

manipulation. 

DATES: Effective Date: This rule will 

become effective May 24, 2010. Dates 

for implementation of the standards are 

provided in the Final Rule. This 

incorporation by reference of certain 

publications in the rule is approved by 

the Director of the Federal Register as of 

May 24, 2010. 

FOR FURTHER INFORMATION CONTACT: 

Ryan Irwin (technical issues), Office of 

Energy Policy and Innovation, Federal 

Energy Regulatory Commission, 888 

First Street, NE., Washington, DC 20426, 

(202) 502–6454. 

Gary D. Cohen (legal issues), Office of 

the General Counsel, Federal Energy 

Regulatory Commission, 888 First 

Street, NE., Washington, DC 20426, 

(202) 502–8321. 

SUPPLEMENTARY INFORMATION: 

Table of Contents 

Paragraph 

Nos. 

I. Background ............................................................................................................................................................................................ 3. 

II. Discussion ............................................................................................................................................................................................ 9. 

A. Overview ....................................................................................................................................................................................... 9. 

B. NAESB Phase I M&V Standards .................................................................................................................................................. 15. 

1. Adoption of NAESB Phase I M&V Standards ...................................................................................................................... 15. 

2. Clarification of Jurisdictional Concerns ............................................................................................................................... 17. 


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