This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

17569

Vol. 62, No. 69

Thursday, April 10, 1997

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 981

[Docket No. FV–97–981–2 PR]

Almonds Grown in California;

Interhandler Transfers of Reserve

Obligation

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Proposed rule.

SUMMARY: This proposal invites

comments on implementing regulations

to authorize interhandler transfers of

reserve obligations. This rule also

announces the Agricultural Marketing

Service’s (AMS) intention to request a

revision to the currently approved

information collection requirements

issued under the marketing order. The

almond marketing order regulates the

handling of almonds grown in

California and is administered locally

by the Almond Board of California

(Board). This rule would allow the

Board to implement authority contained

in the marketing order to authorize

handlers to transfer reserve withholding

obligations to other handlers. It would

provide handlers with an additional

option to satisfy reserve obligations. If

implemented, this rule would enhance

the utility and flexibility of the volume

control regulations while benefiting

producers, handlers, and consumers.

DATES: Comments must be received by

June 9, 1997.

ADDRESSES: Interested persons are

invited to submit written comments

concerning this proposal. Comments

must be sent in triplicate to the Docket

Clerk, Fruit and Vegetable Division,

AMS, USDA, room 2525–S, P.O. Box

96456, Washington, DC 20090–6456,

Fax (202) 720–5698. All comments

should reference the docket 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.

FOR FURTHER INFORMATION CONTACT:

Kathleen M. Finn, Marketing Specialist,

Marketing Order Administration

Branch, F&V, AMS, USDA, room 2530–

S, P.O. Box 96456, Washington, DC

20090–6456; telephone: (202) 720–1509,

Fax (202) 720–5698; or Martin Engeler,

California Marketing Field Office,

Marketing Order Administration

Branch, F&V, AMS, USDA, 2202

Monterey Street, suite 102B, Fresno,

California 93721; telephone: (209) 487–

5901, Fax (209) 487–5906. Small

businesses may request information on

compliance with this regulation by

contacting Jay Guerber, Marketing Order

Administration Branch, F&V, AMS,

USDA, room 2525–S, P.O. Box 96456,

Washington, DC, 20090–6456,

telephone: (202) 720–2491 or Fax (202)

720–5698.

SUPPLEMENTARY INFORMATION: This

proposal is issued under Marketing

Agreement and Order No. 981 (7 CFR

part 981), both as amended, regulating

the handling of almonds 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

(Department) is issuing this rule in

conformance with Executive Order

12866.

This proposal has been reviewed

under Executive Order 12988, Civil

Justice Reform. This rule is not intended

to have retroactive effect. This proposal

will not preempt any State or local laws,

regulations, or policies, unless they

present an irreconcilable conflict with

this rule.

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 the Secretary a petition stating that

the order, any provision of the order, or

any obligation imposed in connection

with the order is not in accordance with

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 the Secretary would rule on the

petition. The Act provides that the

district court of the United States in any

district in which the handler is an

inhabitant, or has his or her principal

place of business, has jurisdiction to

review the Secretary’s ruling on the

petition, provided an action is filed not

later than 20 days after date of the entry

of the ruling.

This proposal invites comments on

implementing regulations authorizing

interhandler transfers of reserve

obligations. Sections 981.45 through

981.60 set forth the authority to

implement volume control regulations

under the order by establishing salable

and reserve percentages of almonds.

Annually, the Board meets to review

projected crop estimates and marketing

conditions for the coming season.

Variations in production can cause wide

fluctuations in prices. These swings in

supplies and price levels can result in

market instability and uncertainty for

growers, handlers, buyers, and

consumers.

If it is determined a reserve is

warranted, the Board recommends to

the Secretary the salable and reserve

percentages to be placed on the almond

crop. If a reserve is established, handlers

are required to refrain from selling to

normal market outlets a quantity of

almonds equal to the reserve percentage.

This percentage becomes the handlers’

reserve withholding obligation.

Handlers must either maintain product

in inventory for possible release at a

later date or dispose of product to

secondary reserve outlets to satisfy their

reserve obligation. The last season a

reserve was in effect was during the

1994–95 crop year.

Section 981.55 of the order was

amended by final order dated June 26,

1996 (61 FR 32917) to include a

provision that allows handlers to

transfer reserve withholding obligation

to other handlers. Prior to the

amendment to the order, § 981.55

authorized only the transfer of almonds

(not reserve almonds) or reserve credits

to other handlers. Reserve credits are

issued to handlers when they dispose of

almonds to secondary outlets in

satisfaction of their reserve obligation.

Handlers can transfer excess credits to

other handlers. The receiving handler

can use the credit to meet all or a

portion of its reserve obligation. This

section of the order further states that

the terms and conditions implementing

the provision must be recommended by

the Board and approved by the

Secretary. Adding a third option by
17570 Federal Register / Vol. 62, No. 69 / Thursday, April 10, 1997 / Proposed Rules

amendment to the order was intended to

provide more flexibility for handlers in

satisfying their reserve obligation.

At a Board meeting held on February

18, 1997, the Board unanimously

recommended implementing the third

option under Section 981.55 concerning

reserve withholding obligation transfers

by making appropriate changes to the

rules and regulations. This proposal

would enhance the utility and flexibility

of the volume control regulations. It

would provide handlers with an

additional method of satisfying reserve

obligations.

Currently, § 981.455 contains three

paragraphs setting forth rules and

regulations regarding interhandler

transfers of almonds. These paragraphs

set forth procedures for: (1) Transferring

non-reserve almonds; (2) transferring

reserve credits; and (3) transferring

inedible almond obligations. The

Board’s proposal recommends adding a

new paragraph including procedures for

transferring reserve withholding

obligations.

This rule would expand the options

available to handlers in the event a

reserve is implemented. The ability to

transfer reserve obligations would

particularly benefit those handlers who

do not stay in business all year and do

not have facilities for storage of reserve

almonds. Such handlers are

traditionally the smaller handlers in the

industry. Storage and other costs

associated with maintaining reserve

inventory or disposing of product to

secondary outlets could be reduced.

This rule would provide another option

for handlers to choose from in satisfying

their reserve obligations that may better

suit their operation.

The objective of the reserve

provisions is to keep a certain quantity

of almonds off the market in order to

maintain market stability. The

additional flexibility in the reserve

provisions is expected to improve

compliance among handlers, which in

turn would maintain the integrity of the

volume control regulations.

In order to ensure that adequate

procedures are in place to monitor

transfer of reserve obligations among

handlers, the Board recommended

modifying ABC Form 11 which

currently covers interhandler transfers

of reserve credits. New information

would be added to the form to properly

document reserve obligation transfers.

Almond handlers wanting to transfer

their reserve obligation to another

handler would complete one portion of

revised Form 11 and forward the form

to the receiving handler. The receiving

handler would complete their portion of

the form and submit it to the Board.

Authorized Board personnel would

review, and if appropriate, approve the

transfer. The Board would then submit

copies of the forms to involved parties.

Pursuant to requirements set forth in

the Regulatory Flexibility Act (RFA), 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 97 handlers

of California almonds who are subject to

regulation under the marketing order

and approximately 7,000 almond

producers in the regulated area. Small

agricultural service firms have been

defined by the Small Business

Administration (13 CFR 121.601) as

those having annual receipts of less than

$5,000,000, and small agricultural

producers are defined as those having

annual receipts of less than $500,000.

Currently, about 58 percent of the

handlers ship under $5 million of

almonds and 42 percent ship over $5

million on an annual basis. In addition,

based on acreage, production, and

grower prices reported by the National

Agricultural Statistics Service, and the

total number of almond growers, the

average annual grower revenue is

approximately $156,000. In view of the

foregoing, it can be concluded that the

majority of handlers and producers of

California almonds may be classified as

small entities.

Sections 981.45 through 981.60 of the

almond marketing order provide

authority to implement volume control

regulations by establishing salable and

reserve percentages of almonds. If it is

determined a reserve is warranted, the

Board recommends to the Secretary the

salable and reserve percentages to be

placed on the almond crop. If a reserve

is established, handlers are required to

not sell to normal market outlets a

quantity of almonds equal to the reserve

percentage. Handlers must either

maintain product in inventory for

possible release at a later date or dispose

of product to lower value reserve outlets

to satisfy their reserve obligation. These

lower value outlets are primarily

crushing for oil and animal feed.

Section 981.55 of the order provides

authority for the interhandler transfer of

almonds and reserve credits. This

section was recently amended to

include authority for interhandler

transfer of reserve obligations. This

proposed rule would implement the

authority to transfer reserve withholding

obligations by revising § 981.455 of the

administrative rules and regulations

accordingly. This proposal would

provide another option, in addition to

those that appear in that section, for

handlers to satisfy their reserve

obligations. The ability to transfer

reserve obligations would particularly

benefit those handlers who do not stay

in business all year and do not have

facilities for storage of reserve almonds.

Such handlers are traditionally the

smaller handlers in the industry.

Storage and other costs associated with

maintaining reserve inventory or

disposing of product to secondary

outlets could be reduced. This rule

would provide another option for

handlers to choose from in satisfying

their reserve obligations that may better

suit their operation.

In past years, handlers either had to

maintain product in inventory or

dispose of it in approved reserve outlets

to satisfy their withholding obligation,

as discussed earlier. Those handlers

choosing to maintain product in

inventory must locate storage facilities

and incur storage costs they may not

otherwise incur, until the reserve is

lifted. Storage costs vary, depending

upon factors such as the type of

facilities utilized and quantities

involved. These costs are generally in

the range of one cent per pound per

month, with additional charges for

moving product into and out of storage

facilities. These costs could be incurred

for approximately six months to a year

and a half depending on the ultimate

disposition of the reserve.

Those handlers choosing to dispose of

their reserve to approved outlets may

save on storage costs, but receive a

lower return on the sales than they may

receive if sold in normal market

channels if the reserve is ultimately

released. Price levels for almonds used

for crushing into oil are in the range of

28 to 35 cents per pound, while animal

feed brings about two to three cents per

pound. Price levels for sales to normal

market outlets vary significantly from

year to year depending on available

supplies and market conditions. The

additional option that would be

provided by this proposal would allow

handlers to make arrangements to

transfer their reserve obligation to other

handlers. Handlers could choose the

most cost effective method of satisfying
Federal Register / Vol. 62, No. 69 / Thursday, April 10, 1997 / Proposed Rules 17571

their reserve obligations that best suits

their operations. This proposed rule

would provide more flexibility if

volume control regulations under the

almond marketing order are issued.

A current form is being revised for

handlers to supply the transfer

information to the Board for its

approval. The current form (ABC Form

11) provides for handlers to transfer

reserve credits. Information would be

added to this form to collect information

on transfers of withholding obligation.

No additional burden would be added

to the form because handlers would

choose one of the options on the form.

The forms current burden time of 5

minutes would not be changed. This

action would not impose any significant

additional reporting or recordkeeping

requirements on either small or large

almond handlers. The benefits of

providing another tool to the industry to

assist them in making business

decisions far outweigh the estimated 5

minutes it would take to complete the

form. Further, any additional reporting

may be offset by reduced reporting for

those handlers choosing to utilize this

option in lieu of other options available

for satisfying reserve obligations. 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.

The Department has not identified

any relevant Federal rules that

duplicate, overlap or conflict with this

proposed rule. Information generated by

State, Federal, and private sector reports

pertains to almonds in general and does

not contain specific producer and

handler information. Therefore, such

information would not be detailed

enough to be used for the specific

purposes required under the order.

The amendment to the marketing

order was voted on in a referendum and

was overwhelmingly supported by

almond growers. This proposal would

establish procedures to implement the

amendment that authorized transfers of

reserve obligations. There are no

alternatives that would result in the

additional flexibility sought by the

industry.

In addition, the Board’s meeting was

widely publicized throughout the

almond industry and all interested

persons were invited to attend the

meeting and participate in committee

deliberations on all issues. Like all

Board meetings, the February 18, 1997,

meeting was a public meeting and all

entities, both large and small, were able

to express views on this issue. The

Board itself is composed of ten

members, of which five are handlers

and five are growers, the majority of

whom are small entities. Finally,

interested persons are invited to submit

information on the regulatory and

informational impacts of this action on

small businesses.

Paperwork Reduction Act

In accordance with the Paperwork

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

Chapter 35), the AMS announces its

intention to request a revision to a

currently approved information

collection for almonds grown in

California.

Title: Almonds Grown in California,

Marketing Order 981.

OMB Number: 0581–0071.

Expiration Date of Approval: August

31, 1999.

Type of Request: Intent to extend and

revise a currently approved information

collection.

Abstract: The information collection

requirements in this request are

essential to carry out the intent of the

AMAA, to provide the respondents the

type of service they request, and to

administer the California almond

marketing order program, which has

been operating since 1950.

Several provisions of the marketing

order were amended as a result of

extensive formal rulemaking

proceedings, including a referendum of

growers. Section 981.55 of the Order

was amended to authorize handlers to

transfer reserve withholding obligations

during the effective period of a reserve.

On February 18, 1997, the Board

unanimously recommended

implementing accompanying

regulations to correspond with this

amendment. This notice entails

modifying ABC Form 11, which covers

reserve credit transfers, to include

transfers of reserve withholding

obligation.

Handlers are already required to

complete the form only during reserve

years if they transfer reserve credits.

This modification would authorize

another option for handlers to dispose

of their reserve obligation. This rule

would necessitate adding data to this

form requiring information from

handlers on reserve obligation transfers.

Almond handlers wanting to transfer

their reserve obligation to another

handler would complete their portion of

the revised ABC Form 11. The initiating

handler would forward the partially

completed Form 11 to the handler

agreeing to assume the obligation. When

the receiving handler completes their

portion of the form, it would transfer the

form to authorized Board personnel for

approval of the transfer. Following the

authorization, the transfer would be

deemed complete. Only handlers

wanting to transfer reserve or reserve

credits would be required to complete

the form.

The information collected is used

only by authorized representatives of

the USDA, including AMS, Fruit and

Vegetable Division regional and

headquarters staff, and authorized

employees of the Board. Authorized

Board employees and the industry are

the primary users of the information and

AMS is the secondary user.

Estimate of Burden: Public reporting

burden for this collection of information

is estimated to average 0.083 hours per

response.

Respondents: California almond

growers, handlers and accepted users of

inedible almonds.

Estimated Number of Respondents:

7,658.

Estimated Number of Responses per

Respondent: 6,022.

Estimated Total Annual Burden on

Respondents: 2,512 hours.

Comments: Comments are invited on:

(1) Whether the proposed collection of

information is necessary for the proper

performance of the functions of the

agency, including whether the

information will have practical utility;

(2) the accuracy of the agency’s estimate

of the burden of the proposed collection

of information, including the validity of

the methodology and assumptions used;

(3) ways to enhance the quality, utility,

and clarity of the information to be

collected; and (4) ways to minimize the

burden of the collection of information

on those who are to respond, including

through the use of appropriate

automated, electronic, mechanical, or

other technological collection

techniques or other forms of information

technology.

Comments should reference OMB No.

0581–0071 and the California Almond

Marketing Order No. 981, and be sent to

USDA in care of Kathleen Finn at the

address above. All comments received

will be available for public inspection

during regular business hours at the

same address.

All responses to this notice will be

summarized and included in the request

for OMB approval. All comments will

also become a matter of public record.

A 60-day comment period is provided

to allow interested persons to respond

to this proposal.

List of Subjects in 7 CFR Part 981

Almonds, Marketing agreements,

Nuts, Reporting and recordkeeping

requirements.
17572 Federal Register / Vol. 62, No. 69 / Thursday, April 10, 1997 / Proposed Rules

For the reasons set forth in the

preamble, 7 CFR part 981 is proposed to

be amended as follows:

PART 981—ALMONDS GROWN IN

CALIFORNIA

1. The authority citation for 7 CFR

part 981 continues to read as follows:

Authority: 7 U.S.C. 601–674.

§ 981.455 [Amended]

2. In § 981.455, paragraph (c) is

redesignated as paragraph (d) and a new

paragraph (c) is proposed to be added to

read as follows:

§ 981.455 Interhandler transfers.

* * * * *

(c) Transfers of reserve withholding

obligation. A handler may transfer

reserve withholding obligation to other

handlers pursuant to § 981.55 after

having filed with the Board an ABC

Form 11 executed by both handlers. The

Board shall approve the transfer upon

receipt of the properly completed form.

* * * * *

Dated: April 4, 1997.

Sharon Bomer Lauritsen,

Deputy Director, Fruit and Vegetable Division.

[FR Doc. 97–9187 Filed 4–9–97; 8:45 am]

BILLING CODE 3410–02–P

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG–246018–96]

RIN 1545–AU49

Recomputation of Life Insurance

Reserves; Hearing Cancellation

AGENCY: Internal Revenue Service,

Treasury.

ACTION: Cancellation of notice of public

hearing on proposed rulemaking.

SUMMARY: This document provides

notice of cancellation of a public

hearing on proposed regulations relating

to the definition of life insurance

reserves.

DATES: The public hearing originally

scheduled for April 17, 1997, beginning

at 10 a.m. is cancelled.

FOR FURTHER INFORMATION CONTACT:

Evangelista C. Lee of the Regulations

Unit, Assistant Chief Counsel

(Corporate), (202) 622–7190 (not a tollfree number).

SUPPLEMENTARY INFORMATION: The

subject of the public hearing is proposed

amendments to the Income Tax

Regulations under sections 816 and 801

of the Internal Revenue Code. A notice

of proposed rulemaking and public

hearing appearing in the Federal

Register on Thursday, January 2, 1997

(62 FR 71), announced that a public

hearing would be held on Thursday,

April 17, 1997, beginning at 10 a.m., in

room 3313, Internal Revenue Building,

1111 Constitution Avenue, NW,

Washington, DC 20224.

The public hearing scheduled for

Thursday, April 17, 1997, is cancelled.

Cynthia E. Grigsby,

Chief, Regulations Unit, Assistant Chief

Counsel (Corporate).

[FR Doc. 97–9112 Filed 4–9–97; 8:45 am]

BILLING CODE 4830–01–U

ENVIRONMENTAL PROTECTION

AGENCY

40 CFR Part 52

[A–1–FRL–5801–8]

Approval and Promulgation of Air

Quality Implementation Plans;

Vermont; Reasonably Available

Control Technology for Major

Stationary Sources of Nitrogen Oxides

and Volatile Organic Compounds Not

Covered By Other Category-Specific

Regulations

AGENCY: Environmental Protection

Agency (EPA).

ACTION: Proposed rule.

SUMMARY: EPA is proposing to approve

a State implementation plan (SIP)

revision submitted by the State of

Vermont. This revision establishes and

requires Reasonably Available Control

Technology at major stationary sources

of nitrogen oxides and major stationary

sources of volatile organic compounds

(VOC) which are not covered by other

category-specific VOC regulations. In

the Final Rules Section of this Federal

Register, EPA is approving the State’s

SIP revision as a direct final rule

without prior proposal because the

Agency views this as a noncontroversial

revision amendment and anticipates no

adverse comments. A detailed rationale

for the approval is set forth in the direct

final rule. If no adverse comments are

received in response to that direct final

rule, no further activity is contemplated

in relation to this proposed rule. If EPA

receives adverse comments, the direct

final rule will be withdrawn and all

public comments received will be

addressed in a subsequent final rule

based on this proposed rule. EPA will

not institute a second comment period

on this proposal. Any parties interested

in commenting on this proposal should

do so at this time.

DATES: Comments must be received on

or before May 12, 1997.

ADDRESSES: Comments may be mailed to

Susan Studlien, Deputy Director, Office

of Ecosystem Protection (mail code

CAA), U.S. Environmental Protection

Agency, Region I, JFK Federal Bldg.,

Boston, MA 02203. Copies of the State

submittal and EPA’s technical support

document are available for public

inspection during normal business

hours, by appointment at the Office of

Ecosystem Protection, U.S.

Environmental Protection Agency,

Region I, One Congress Street, 11th

floor, Boston, MA 02203–2211 and, the

Air Pollution Control Division, Agency

of Natural Resources, Building 3 South,

103 South Main Street, Waterbury, VT

05676.

FOR FURTHER INFORMATION CONTACT:

Steven A. Rapp, (617) 565-2773, or

Rapp.Steve@EPAMAIL.EPA.GOV.

SUPPLEMENTARY INFORMATION: For

additional information, see the direct

final rule which is located in the Rules

Section of this Federal Register.

Authority: 42 U.S.C. 7401-7671q.

Dated: March 10, 1997.

John P. DeVillars,

Regional Administrator Region I.

[FR Doc. 97–9013 Filed 4–9–97; 8:45 am]

BILLING CODE 6560–50–P

FEDERAL EMERGENCY

MANAGEMENT AGENCY

44 CFR Part 67

[Docket No. FEMA–7215]

Proposed Flood Elevation

Determinations

AGENCY: Federal Emergency

Management Agency, FEMA.

ACTION: Proposed rule.

SUMMARY: Technical information or

comments are requested on the

proposed base (1% annual chance) flood

elevations and proposed base flood

elevation modifications for the

communities listed below. The base

flood elevations are the basis for the

floodplain management measures that

the community is required either to

adopt or to show evidence of being

already in effect in order to qualify or

remain qualified for participation in the

National Flood Insurance Program

(NFIP).

DATES: The comment period is ninety

(90) days following the second

publication of this proposed rule in a

newspaper of local circulation in each

community.