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

31362

Vol. 63, No. 110

Tuesday, June 9, 1998

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 56 and 70

[Docket No. PY–98–002]

RIN 0581–AB54

Egg, Poultry, and Rabbit Grading

Increase in Fees and Charges

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Proposed rule.

SUMMARY: The Agricultural Marketing

Service (AMS) proposes to increase the

fees and charges for Federal voluntary

egg, poultry, and rabbit grading. These

fees and charges need to be increased to

cover the increase in salaries of Federal

employees, salary increases of State

employees cooperatively utilized in

administering the programs, and other

increased Agency costs.

DATES: Comments must be received on

or before August 10, 1998.

ADDRESSES: Send written comments, in

duplicate, to Douglas C. Bailey, Chief,

Standardization Branch, Poultry

Programs, Agricultural Marketing

Service, U.S. Department of Agriculture,

STOP 0259, room 3944-South, 1400

Independence Avenue, SW,

Washington, DC 20250–0259.

Comments received may be inspected at

this location between 8:00 a.m. and 4:30

p.m., Eastern Time, Monday thru

Friday, except holidays. State that your

comments refer to Docket No. PY–98–

002.

FOR FURTHER INFORMATION CONTACT: Rex

A. Barnes, Chief, Grading Branch, (202)

720–3271.

SUPPLEMENTARY INFORMATION: This

proposed rule has been determined to

be not significant for purposes of

Executive Order 12866 and has not been

reviewed by the Office of Management

and Budget (OMB).

This proposed rule has been reviewed

under Executive Order 12988, Civil

Justice Reform. This action is not

intended to have retroactive effect. This

rule will not preempt any State or local

laws, regulations, or policies, unless

they present an irreconcilable conflict

with this rule. There are no

administrative procedures which must

be exhausted prior to any judicial

challenge to the provisions of this rule.

Pursuant to the requirements set forth

in the Regulatory Flexibility Act (RFA),

the AMS has considered the economic

impact of this action on small entities.

There are about 400 users of Poultry

Programs’ grading services. Many of

these users are small entities under the

criteria established by the Small

Business Administration (13 CFR

121.601). This proposed rule will raise

the fees charged to businesses for

voluntary grading services for eggs,

poultry, and rabbits. The AMS estimates

that overall this rule would yield an

additional $1.5 million during FY 1999.

The hourly resident rate for grading

services will increase by approximately

4.1 percent while the hourly

nonresident rate for grading service will

increase by approximately 15 percent.

The costs to entities will be proportional

to their use of service, so that costs are

shared equitably by all users.

Furthermore, entities are under no

obligation to use grading services as

authorized under the Agricultural

Marketing Act of 1946.

The AMS regularly reviews its user

fee financed programs to determine if

the fees are adequate. The existing fee

schedule will not generate sufficient

revenues to cover program costs while

maintaining an adequate reserve balance

(four months of costs) as called for by

Agency policy (AMS Directive 408.1).

The Agency has engaged in streamlining

efforts to reduce costs including staff

and space reductions or closing of field

offices. However, overall, costs are

increasing despite these efforts.

Without a fee increase, revenue

projections for FY 1999 would be $19.8

million, with costs projected at $22.3

million. The shortfall, if allowed to

continue, would translate into an

approximate 3.8 month operating

reserve at the end of FY 1999 or $7.1

million, which is less than Agency

policy requires. With the fee increase,

FY 1999 revenue is projected to be $21.3

million and costs are projected at $22.3

million. Trust fund balances would be

$8.5 million or 4.3 months.

The AMS has certified that this action

will not have a significant impact on a

substantial number of small entities, as

defined in the RFA (5 U.S.C. 601).

The information collection

requirements that appear in the sections

to be amended by the proposed rule

have been previously approved by OMB

and assigned OMB Control Numbers

under the Paperwork Reduction Act (44

U.S.C. Chapter 35) as follows:

§ 56.52(a)(4)—No. 0581–0128; and

§ 70.77(a)(4)—No. 0581–0127.

Background and Proposed Changes

The Agricultural Marketing Act

(AMA) of 1946 authorizes official

grading and certification on a user-fee

basis of eggs, poultry, and rabbits. The

AMA provides that reasonable fees be

collected from users of the program

services to cover, as nearly as

practicable, the costs of services

rendered. AMS regularly reviews these

programs to determine if fees are

adequate and if costs are reasonable.

This proposal would amend the

schedule for fees and charges for

grading services rendered to the egg,

poultry, and rabbit industries to reflect

the costs currently associated with the

program.

Several streamlining actions to be

completed in FY 1998 will result in cost

savings. They include staff and space

reductions or closing of field offices.

However, overall, costs are increasing

despite these efforts.

Employee salaries and benefits

account for approximately 82 percent of

the total operating budget. A general

and locality salary increase for Federal

employees, ranging from 2.57 to 6.52

percent, depending on locality, became

effective in January 1998 and has

materially affected program costs.

Another general and locality salary

increase estimated at 3.0 percent is

expected in January 1999. Also, from

October 1997 through September 1999,

salaries and fringe benefits of federally

licensed State employees will have

increased by about 6 percent. As a

result, the hourly resident rate for

grading services will increase by

approximately 4.1 percent. The hourly

resident rate covers graders’ salaries,

fringe benefits, and related costs.

Another factor affecting the current

fee structure is the increased demand

for grading services on a fee basis.

Resident grading service is provided by

a grader with a regular tour of duty in
Federal Register / Vol. 63, No. 110 /Tuesday, June 9, 1998 / Proposed Rules 31363

a plant, while fee grading service is

provided by a grader on an intermittent,

as-needed basis. Historically, the

majority of shell egg and poultry grading

has been done on a resident basis

according to the official U.S. quality

grade standards. In recent years,

however, there has been an increase in

the volume of shell eggs and poultry

being traded according to productspecific purchase requirements where

USDA certification is required, and this

work is done predominantly on a fee

basis. Fee services for many plants

require more supervisory time and

travel to staff, train, and supervise

graders. As a result, a greater proportion

of overhead costs for supervision and

support staff must be charged to fee

services. Rates to cover these costs were

only minimally raised in years prior to

the last fee increase effective May 1,

1997. Current analysis shows that these

rates need to be increased an additional

15 percent to totally support their fair

share of the program’s overhead costs.

Additionally, rates for appeal grading

and review of a grader’s decision are

only occasionally used, currently

accounting for less than $5,000 revenue

annually. A separate rate for this service

would be discontinued and these

services would be charged using fee

service rates for the time required to

perform such service. This amendment

would simplify the rate structure and

any change in revenue would be

negligible.

A recent review of the current fee

schedule, effective May 1, 1997,

revealed that anticipated revenue will

not adequately cover increasing program

costs. Without a fee increase, projected

FY 1999 revenues for grading services

are $19.8 million, with costs projected

at $22.3 million, and trust fund balances

would be $7.1 million, below

appropriate levels. With a fee increase,

projected FY 1999 revenues would be

$21.3 million and costs are projected at

$22.3 million. Trust fund balances

would be $8.5 million or 4.3 months of

operating costs.

The following table compares current

fees and charges with proposed fees and

charges for egg, poultry, and rabbit

grading as found in 7 CFR Parts 56 and

70:

Service Current Proposed

Resident service:

Inauguration of service ............................................................................................................................................. 310 310

Hourly charges—Regular hours ............................................................................................................................... 26.56 27.64

Administrative charges—Poultry grading:

Per pound of poultry .......................................................................................................................................... .00033 .00034

Minimum per month ........................................................................................................................................... 225 225

Maximum per month .......................................................................................................................................... 2,250 2,500

Administrative charges—Shell egg grading:

Per 30-dozen case of shell eggs ....................................................................................................................... .038 .040

Minimum per month ........................................................................................................................................... 225 225

Maximum per month .......................................................................................................................................... 2,250 2,500

Administrative charges—Rabbit grading:

Based on 25% of grader’s salary, minimum per month 225 250

Nonresident Service: 1

Hourly charges:

Regular hours .................................................................................................................................................... 26.56 27.64

Administrative charges:

Based on 25% of grader’s salary, minimum per month .................................................................................... 225 250

Fee and appeal service:

Hourly charges:

Regular hours .................................................................................................................................................... 38.96 44.80

Weekend and holiday hours .............................................................................................................................. 43.24 51.60

1For poultry and shell egg grading.

List of Subjects

7 CFR Part 56

Eggs and egg products, Food grades

and standards, Food labeling, Reporting

and recordkeeping requirements.

7 CFR Part 70

Food grades and standards, Food

labeling, Poultry and poultry products,

Rabbits and rabbit products, Reporting

and recordkeeping requirements.

For reasons set forth in the preamble,

it is proposed that Title 7, Code of

Federal Regulations, parts 56 and 70 be

amended as follows:

PART 56—GRADING OF SHELL EGGS

1. The authority citation for part 56

continues to read as follows:

Authority: 7 U.S.C. 1621–1627.

2. Section 56.46 is revised to read as

follows:

§ 56.46 On a fee basis.

(a) Unless otherwise provided in this

part, the fees to be charged and

collected for any service performed, in

accordance with this part, on a fee basis

shall be based on the applicable rates

specified in this section.

(b) Fees for grading services will be

based on the time required to perform

the services. The hourly charge shall be

$44.80 and shall include the time

actually required to perform the grading,

waiting time, travel time, and any

clerical costs involved in issuing a

certificate.

(c) Grading services rendered on

Saturdays, Sundays, or legal holidays

shall be charged for at the rate of $51.60

per hour. Information on legal holidays

is available from the Supervisor.

3. Section 56.47 is revised to read as

follows:

§ 56.47 Fees for appeal grading or review

of a grader’s decision.

The cost of an appeal grading or

review of a grader’s decision shall be

borne by the appellant on a fee basis at

rates set forth in § 56.46, plus any travel

and additional expenses. If the appeal

grading or review of a grader’s decision

discloses that a material error was made

in the original determination, no fee or

expenses will be charged.

4. In § 56.52, paragraph (a)(4) is

revised to read as follows:

§ 56.52 Continuous grading performed on

a resident basis.

* * * * *

(a) * * *

(4) An administrative service charge

based upon the aggregate number of 30-
31364 Federal Register / Vol. 63, No. 110 /Tuesday, June 9, 1998 / Proposed Rules

dozen cases of all shell eggs handled in

the plant per billing period multiplied

by $0.040, except that the minimum

charge per billing period shall be $225

and the maximum charge shall be

$2,500. The minimum charge also

applies where an approved application

is in effect and no product is handled.

* * * * *

5. In § 56.54, paragraph (a)(2) is

revised to read as follows:

§ 56.54 Charges for continuous grading

performed on a nonresident basis.

* * * * *

(a) * * *

(2) An administrative service charge

equal to 25 percent of the grader’s total

salary costs. A minimum charge of $250

will be made each billing period. The

minimum charge also applies where an

approved application is in effect and no

product is handled.

* * * * *

PART 70—VOLUNTARY GRADING OF

POULTRY PRODUCTS AND RABBIT

PRODUCTS

6. The authority citation for part 70

continues to read as follows:

Authority: 7 U.S.C. 1621–1627.

7. Section 70.71 is revised to read as

follows:

§ 70.71 On a fee basis.

(a) Unless otherwise provided in this

part, the fees to be charged and

collected for any service performed, in

accordance with this part, on a fee basis

shall be based on the applicable rates

specified in this section.

(b) Fees for grading services will be

based on the time required to perform

such services for class, quality, quantity

(weight test), or condition, whether

ready-to-cook poultry, ready-to-cook

rabbits, or specified poultry food

products are involved. The hourly

charge shall be $44.80 and shall include

the time actually required to perform

the work, waiting time, travel time, and

any clerical costs involved in issuing a

certificate.

(c) Grading services rendered on

Saturdays, Sundays, or legal holidays

shall be charged for at the rate of $51.60

per hour. Information on legal holidays

is available from the Supervisor.

8. Section 70.72 is revised to read as

follows:

§ 70.72 Fees for appeal grading, laboratory

analysis, or examination or review of a

grader’s decision.

The costs of an appeal grading,

laboratory analysis, or examination or

review of a grader’s decision, will be

borne by the appellant on a fee basis at

rates set forth in § 70.71, plus any travel

and additional expenses. If the appeal

grading, laboratory analysis, or

examination or review of a grader’s

decision discloses that a material error

was made in the original determination,

no fee or expenses will be charged.

9. In § 70.76, paragraph (a)(2) is

revised to read as follows:

§ 70.76 Charges for continuous poultry

grading performed on a nonresident basis.

* * * * *

(a) * * *

(2) An administrative service charge

equal to 25 percent of the grader’s total

salary costs. A minimum charge of $250

will be made each billing period. The

minimum charge also applies where an

approved application is in effect and no

product is handled.

* * * * *

10. In § 70.77, paragraphs (a)(4) and

(a)(5) are revised to read as follows:

§ 70.77 Charges for continuous poultry or

rabbit grading performed on a resident

basis.

* * * * *

(a) * * *

(4) For poultry grading: An

administrative service charge based

upon the aggregate weight of the total

volume of all live and ready-to-cook

poultry handled in the plant per billing

period computed in accordance with the

following: Total pounds per billing

period multiplied by $0.00034, except

that the minimum charge per billing

period shall be $225 and the maximum

charge shall be $2,500. The minimum

charge also applies where an approved

application is in effect and no product

is handled.

(5) For rabbit grading: An

administrative service charge equal to

25 percent of the grader’s total salary

costs. A minimum charge of $250 will

be made each billing period. The

minimum charge also applies where an

approved application is in effect and no

product is handled.

* * * * *

Dated: June 3, 1998.

Enrique E. Figueroa,

Administrator, Agricultural Marketing

Service.

[FR Doc. 98–15205 Filed 6–8–98; 8:45 am]

BILLING CODE 3410–02–P

NUCLEAR REGULATORY

COMMISSION

10 CFR Part 72

RIN 3150–AF80

Miscellaneous Changes to Licensing

Requirements for the Independent

Storage of Spent Nuclear Fuel and

High-Level Radioactive Waste

AGENCY: Nuclear Regulatory

Commission.

ACTION: Proposed rule.

SUMMARY: The Nuclear Regulatory

Commission is proposing to amend its

regulations to correct several

inconsistencies and to clarify certain

sections of the regulations. The

amendments would differentiate the

requirements for the storage of spent

fuel under wet and dry conditions,

clarify requirements for the content and

submission of various reports, and

specify that quality assurance (QA)

records must be maintained as

permanent records.

DATES: The comment period expires

August 24, 1998. Comments received

after this date will be considered if it is

practical to do so, but the Commission

is able to ensure consideration only for

comments received on or before this

date.

ADDRESSES: Comments may be sent to:

Secretary, U.S. Nuclear Regulatory

Commission, Washington, DC 20555–

0001. Attention: Rulemakings and

Adjudications Staff.

Deliver comments to: 11555 Rockville

Pike, Rockville, Maryland, between 7:30

am and 4:15 pm on Federal workdays.

You may also provide comments via

the NRC’s interactive rulemaking web

site through the NRC home page

(http://www.nrc.gov). This site provides

the availability to upload comments as

files (any format) if your web browser

supports that function. For information

about the interactive rulemaking site,

contact Ms. Carol Gallagher, (301) 415–

6215; e-mail CAG@nrc.gov.

Certain documents related to this

rulemaking, including comments

received may be examined at the NRC

Public Document Room, 2120 L Street

NW., (Lower Level), Washington, DC.

These same documents also may be

viewed and downloaded electronically

via the interactive rulemaking website

established by NRC for this rulemaking.

FOR FURTHER INFORMATION CONTACT: M.

L. Au, Office of Nuclear Material Safety

and Safeguards, U.S. Nuclear Regulatory

Commission, Washington, DC 20555–

0001, telephone (301) 415–6181, e-mail

mla@nrc.gov.