32966 Federal Register / Vol. 63, No. 116 /Wednesday, June 17, 1998 /Rules and Regulations

personnel, services, or management

infrastructure beyond those already

implemented would have a detrimental

effect on the program’s ability to

provide meat grading and certification

services and support the accurate and

uniform application of such services.

The hourly rate increase is necessary to

recover the costs of providing voluntary

Federal meat grading and certification

services and for the program to continue

serving the industry.

Paperwork Reduction Act

The provisions of the Paperwork

Reduction Act do not apply to this

rulemaking as it does not require the

collection of any information or data.

Comments

On December 31, 1997, in the Federal

Register, the Agency published the

proposed rule to increase the fees and

requested comments by March 2, 1998.

The Agency received two comments.

The first respondent requested

additional information about the effect

of the fee increase on small entities.

Additional information has been

provided in the Effect on Small Entities

section of this final rule. Respondent # 1

also alleged that the program charges a

minimum of 8 hours per day, and

suggested that charges should be based

on volume of production. As identified

in 7 CFR 54.27 (a), noncommitment

applicants, of which almost all are small

entities, are charged to the nearest

quarter hour, and the minimum charge

is half an hour. For reasons cited in the

Effect on Small Entities section, the

Agency determined that the current

hourly fee method of charging

applicants provides the best alternative

for businesses who need less than 8

hours of service.

Respondent # 2 asked the Agency to

continue to find ways to reduce costs

and to refrain from imposing higher

grading costs on the industry. The

Agency is continually seeking ways to

reduce costs and increase efficiency.

This fee increase amounts to an average

annual increase of 2.2 percent since the

last increase in 1993. Even though

businesses will pay more for hourly

services, the Agency has increased the

amount of service provided by over

9,580,000,000 pounds per year in

comparison to FY 1993. This amounts to

a 48 percent per hour increase in

efficiency which reduces the cost of

services by 0.0149 cents per pound. As

requested by the respondent, the

Agency will continue seeking way to

increase efficiency, quality, and

timeliness of services.

Background

The Secretary of Agriculture is

authorized by the Agricultural

Marketing Act (AMA) of 1946, as

amended, 7 U.S.C. 1621 et seq., to

provide voluntary Federal meat grading

and certification services to facilitate the

orderly marketing of meat and meat

products and to enable consumers to

obtain the quality of meat they desire.

The AMA also provides for the

collection of fees from users of Federal

meat grading and certification services

that are approximately equal to the cost

of providing these services. The hourly

fees for service are established by

equitably distributing the projected

annual program operating costs over the

estimated hours of service—revenue

hours—provided to users of the service.

Program operating costs include salaries

and fringe benefits of meat graders,

supervision, travel, training, and all

administrative costs of operating the

program. Employee salaries and benefits

account for approximately 80 percent of

the total budget. Revenue hours include

base hours, premium hours, and service

performed on Federal legal holidays. As

program operating costs change, the

hourly fees must be adjusted to enable

the program to remain financially selfsupporting as required by law.

In view of these considerations, the

Agency will increase the base hourly

rate commitment applicants pay for

voluntary Federal meat grading and

certification services from $36.60 to

$39.80. A commitment applicant is a

user of the service who agrees, by

commitment or agreement

memorandum, to use meat grading and

certification services for 8 consecutive

hours per day, Monday through Friday,

between the hours of 6 a.m. and 6 p.m.,

excluding legal holidays. The base

hourly rate for noncommitment

applicants for voluntary Federal meat

grading and certification services will

increase from $39.00 to $42.20, and will

be charged to applicants who utilize the

service for 8 consecutive hours or less

per day, Monday through Friday,

between the hours of 6 a.m. and 6 p.m.,

excluding legal holidays. The premium

hourly rate for all applicants will

increase from $44.60 to $47.80, and will

be charged to users of the service for the

hours worked in excess of 8 hours per

day between the hours of 6 a.m. and 6

p.m.; for hours worked between 6 p.m.

and 6 a.m., Monday through Friday; and

for any time worked on Saturday and

Sunday, except on legal holidays. The

holiday rate for all applicants will

increase from $73.20 to $79.60, and will

be charged to users of the service for all

hours worked on legal holidays.

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

found that since the program is

operating at a loss, good cause exists for

not delaying the effective action until 30

days after publication of this final rule

in the Federal Register. Therefore, this

final rule will be effective on June 18,

1998.

List of Subjects in 7 CFR Part 54

Food grades and standards, Food

labeling, Meat and meat products.

For the reasons set forth in the

preamble, 7 CFR part 54 is amended as

follows:

PART 54—MEATS, PREPARED

MEATS, AND MEAT PRODUCTS

(GRADING, CERTIFICATION, AND

STANDARDS)

1. The authority citation for part 54

continues to read as follows:

Authority: 7 U.S.C. 1621–1627.

§ 54.27 [Amended]

2. In § 54.27, paragraph (a), ‘‘$39.00’’

is removed and ‘‘$42.20’’ is added in its

place, ‘‘$44.60’’ is removed and

‘‘$47.80’’ is added in its place, ‘‘$73.20’’

is removed ‘‘$79.60’’ is added in its

place, and in paragraph (b), ‘‘$36.60’’ is

removed and ‘‘$39.80’’ is added in its

place, ‘‘$44.60’’ is removed and

‘‘$47.80’’ is added in its place, and

‘‘$73.20’’ is removed and ‘‘$79.60’’ is

added in its place.

Dated: June 11, 1998.

Robert L. Leverette,

Acting Deputy Administrator, Livestock and

Seed Program.

[FR Doc. 98–16010 Filed 6–16–98; 8:45 am]

BILLING CODE 3410–02–P

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 953

[Docket No. FV98–953–1 IFR]

Irish Potatoes Grown in Southeastern

States; Increased Assessment Rate

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Interim final rule with request

for comments.

SUMMARY: This rule increases the

assessment rate established for the

Southeastern Potato Committee

(Committee) under Marketing Order No.

953 for the 1998–99 and subsequent

fiscal periods from $0.0075 to $0.01 per

hundredweight of potatoes handled.

The Committee is responsible for local

administration of the marketing order
Federal Register / Vol. 63, No. 116 /Wednesday, June 17, 1998 /Rules and Regulations 32967

which regulates the handling of Irish

potatoes grown in two southeastern

States (Virginia and North Carolina).

Authorization to assess potato handlers

enables the Committee to incur

expenses that are reasonable and

necessary to administer the program.

The fiscal period begins June 1 and ends

May 31. The assessment rate will

remain in effect indefinitely unless

modified, suspended, or terminated.

DATES: Effective June 18, 1998.

Comments received by July 17, 1998

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, P.O.

Box 96456, room 2525–S, Washington,

DC 20090–6456; Fax 202–205–6632.

Comments should reference the docket

number and the date and page number

of this issue of the Federal Register and

will be available for public inspection in

the Office of the Docket Clerk during

regular business hours.

FOR FURTHER INFORMATION CONTACT: Jim

Wendland, DC Marketing Field Office,

Marketing Order Administration

Branch, Fruit and Vegetable Programs,

AMS, USDA, P.O. Box 96456, room

2525–S, Washington, DC 20090–6456;

telephone: 202–720–2491, Fax: 202–

205–6632. Small businesses may request

information on compliance with this

regulation by contacting Jay Guerber,

also at the above address, telephone,

and Fax.

SUPPLEMENTARY INFORMATION: This rule

is issued under Marketing Agreement

No. 104 and Order No. 953, both as

amended (7 CFR part 953), regulating

the handling of Irish potatoes grown in

two southeastern States (Virginia and

North Carolina), 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 rule has been reviewed under

Executive Order 12988, Civil Justice

Reform. Under the marketing order now

in effect, Virginia-North Carolina potato

handlers are subject to assessments.

Funds to administer the order are

derived from such assessments. It is

intended that the assessment rate as

issued herein will be applicable to all

assessable potatoes beginning June 1,

1998, and continuing until amended,

suspended, or terminated. This rule 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. Such

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 the date of the

entry of the ruling.

This rule increases the assessment

rate established for the Committee for

the 1998–99 and subsequent fiscal

periods from $0.0075 to $0.01 per

hundredweight of potatoes handled.

The order provides authority for the

Committee, with the approval of the

Department, to formulate an annual

budget of expenses and collect

assessments from handlers to administer

the program. The Committee consists of

seven producer members and five

handler members, each of whom is

familiar with the Committee’s needs and

with the costs for goods and services in

their local area and are thus in a

position to formulate an appropriate

budget and assessment rate. The budget

and assessment rate were formulated

and discussed in a public meeting.

Thus, all directly affected persons had

an opportunity to participate and

provide input.

For the 1996–97 and subsequent fiscal

periods the Committee recommended,

and the Department approved, an

assessment rate of $0.0075 per

hundredweight of potatoes handled that

would continue in effect from fiscal

period to fiscal period unless modified,

suspended, or terminated by the

Secretary upon recommendation and

information submitted by the

Committee or other information

available to the Secretary.

The Committee met on April 16, 1998,

and unanimously recommended 1998–

99 expenditures of $12,000, the same as

last year. The major expenditures

include $7,700 for the manager’s and

secretarial salaries and $1,000 for travel

expenses. These and all other expense

items are budgeted at last year’s

amounts.

Regarding the assessment rate, after

considering several options, the

Committee concluded that the current

$0.0075 per hundredweight would not

be adequate for the 1998–99 fiscal

period for the following reasons. The

Committee’s operating reserve is only

$5,000 and is expected to be quickly

exhausted. This reserve is the lowest

ever for any of the Committee’s fiscal

periods except one. Also, wet fields

caused delayed plantings and

unfavorable growing conditions,

resulting in potato plant stands

estimated to be 20 percent below

normal. As a result of this and other

factors, the Committee projects that

during the industry’s brief,

predominately June and July, shipping

and assessing period, its total potato

volume to be handled will be down at

least 100,000 hundredweight. Therefore,

the Committee unanimously

recommended an assessment rate of

$0.01 per hundredweight, $0.0025

higher than the rate currently in effect.

The assessment rate recommended by

the Committee was based on projected

shipments of 1,200,000 hundredweight

of Southeastern potatoes, which should

provide $12,000 in assessment income.

Income derived from handler

assessments, along with funds from the

Committee’s authorized operating

reserve, will be adequate to cover

budgeted expenses. Funds in the reserve

at the beginning of the 1997–98 fiscal

period are estimated at only $5,000.

Funds in the reserve will be kept within

the maximum permitted by the order of

approximately one fiscal period’s

expenses of $12,000 (§ 953.35).

The assessment rate established in

this rule will continue in effect

indefinitely unless modified,

suspended, or terminated by the

Secretary upon recommendation and

information submitted by the

Committee or other available

information.

Although this assessment rate is

effective for an indefinite period, the

Committee will continue to meet prior

to or during each fiscal period to

recommend a budget of expenses and

consider recommendations for

modification of the assessment rate. The

dates and times of Committee meetings

are available from the Committee or the

Department. Committee meetings are

open to the public and interested

persons may express their views at these

meetings. The Department will evaluate

Committee recommendations and other

available information to determine

whether modification of the assessment
32968 Federal Register / Vol. 63, No. 116 /Wednesday, June 17, 1998 /Rules and Regulations

rate is needed. Further rulemaking will

be undertaken as necessary. The

Committee’s 1998–99 budget and those

for subsequent fiscal periods will be

reviewed and, as appropriate, approved

by the Department.

Pursuant to requirements set forth in

the Regulatory Flexibility Act (RFA), the

Agricultural Marketing Service (AMS)

has considered the economic impact of

this rule 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 the 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 85 producers

of Southeastern potatoes in the

production area and approximately 40

handlers subject to regulation under the

marketing order. Small agricultural

producers have been defined by the

Small Business Administration (13 CFR

121.601) as those having annual receipts

of less than $500,000, and small

agricultural service firms are defined as

those whose annual receipts are less

than $5,000,000. The majority of

Southeastern potato producers and

handlers may be classified as small

entities.

This rule increases the assessment

rate established for the Southeastern

Potato Committee and collected from

handlers for the 1998–99 and

subsequent fiscal periods from $0.0075

per hundredweight to $0.01 per

hundredweight of potatoes handled.

Both the $0.01 assessment rate and the

1998–99 budget of $12,000 were

unanimously recommended by the

Committee at its April 16, 1998,

meeting. The assessment rate

established by this action is $0.0025

higher than the 1997–98 rate. The

Committee recommended an increased

assessment rate to help offset the

smaller projected crop of assessable

Southeastern potatoes in 1998. The

anticipated crop of 1,200,000

hundredweight is approximately

100,000 hundredweight less than the

1997 crop. The $0.01 rate should

provide $12,000 in assessment income

which will be adequate to meet the

1998–99 fiscal period’s budgeted

expenses.

The Committee discussed leaving the

assessment at the current $0.0075 rate

but determined that since the crop is

estimated to be only 1,200,000

hundredweight, which is 20 percent

below normal, that this would not

generate enough income to meet

budgeted expenses without exhausting

the $5,000 operating reserve.

The major expenditures

recommended by the Committee for the

1998–99 fiscal period include $7,700 for

the manager’s and secretarial salaries

and $1,000 for travel expenses. These

and all other expense items are

budgeted at last year’s amounts.

A review of historical information and

preliminary information pertaining to

the upcoming season indicates that the

grower price for the 1998–99 potato

season could average $8.60 per

hundredweight of potatoes. Shipments

for 1998 are expected to be 1,200,000

hundredweight. Therefore, the

estimated assessment revenue for the

1998–99 fiscal period ($12,000) as a

percentage of the projected total crop

value ($10,320,000) could be .1163

percent.

While assessments impose some

additional costs on handlers, the

assessment is minimal and uniform on

all handlers. Some of the additional

costs may be passed on to producers.

However, these costs will be offset by

the benefits derived by the operation of

the order. In addition, the Committee’s

meeting was widely publicized

throughout the Southeastern potato

industry and all interested persons were

invited to attend the meeting and

participate in Committee deliberations

on all issues. Like all Committee

meetings, the April 16, 1998, meeting

was a public meeting and all entities,

both large and small, were able to

express views on this issue. Finally,

interested persons are invited to submit

information on the regulatory and

informational impacts of this action on

small businesses.

This action imposes no additional

reporting or recordkeeping requirements

on either small or large Southeastern

potato handlers. 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

rule.

A 30-day comment period is provided

to allow interested persons to submit

written comments. Thirty days is

deemed appropriate because a final

decision on the assessment rate increase

needs to be made as close as possible to

the end of the 1998 shipping season.

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

date of this rule until 30 days after

publication in the Federal Register

because: (1) The Committee needs to

have sufficient funds to pay its expenses

which are incurred on a continuous

basis. Its operating reserve funds are

very low and are expected to be

exhausted before sufficient assessments

can be collected during the very brief,

predominately June and July, shipping

and assessing period to pay critical

expenses; (2) the 1998–99 fiscal period

began on June 1, 1998, and the order

requires that the rate of assessment for

each fiscal period apply to all assessable

Irish potatoes handled during such

fiscal period; (3) handlers are aware of

this action which was unanimously

recommended by the Committee at a

public meeting and is similar to other

assessment rate actions issued in past

years; and (4) this interim final rule

provides a 30-day comment period, and

all comments timely received will be

considered prior to finalization of this

rule.

List of Subjects in 7 CFR Part 953

Marketing agreements, Potatoes,

Reporting and recordkeeping

requirements.

For the reasons set forth in the

preamble, 7 CFR part 953 is amended as

follows:

PART 953—IRISH POTATOES GROWN

IN SOUTHEASTERN STATES

1. The authority citation for 7 CFR

part 953 continues to read as follows:

Authority: 7 U.S.C. 601–674.

2. Section 953.253 is revised to read

as follows:

§ 953.253 Assessment rate.

On and after June 1, 1998, an

assessment rate of $0.01 per

hundredweight is established for

Southeastern States potatoes.
Federal Register / Vol. 63, No. 116 /Wednesday, June 17, 1998 /Rules and Regulations 32969

Dated: June 12, 1998.

Robert C. Keeney,

Deputy Administrator, Fruit and Vegetable

Programs.

[FR Doc. 98–16091 Filed 6–16–98; 8:45 am]

BILLING CODE 3410–02–P

NUCLEAR REGULATORY

COMMISSION

10 CFR Part 32

RIN 3150–AF76

License Applications for Certain Items

Containing Byproduct Material

AGENCY: Nuclear Regulatory

Commission.

ACTION: Final rule.

SUMMARY: The Nuclear Regulatory

Commission (NRC) is amending its

regulations that govern licensing

requirements for persons who

incorporate byproduct material into

certain items or who initially transfer

certain items containing byproduct

material. This action is being taken in

response to a petition for rulemaking

submitted by mb-microtec, Inc. (PRM–

32–4), to allow the distribution of

timepieces that contain less than 25 mCi

of gaseous tritium light sources (GTLS)

to be regulated according to the same

requirements that regulate timepieces

containing tritium paint. This final rule

simplifies the licensing process for

distribution of certain timepieces

containing tritium paint and

accommodates the use of a new

technology for self-illuminated

timepieces.

EFFECTIVE DATE: August 17, 1998.

FOR FURTHER INFORMATION CONTACT:

Donald O. Nellis, Office of Nuclear

Material Safety and Safeguards, U.S.

Nuclear Regulatory Commission,

Washington DC 20555, Telephone (301)

415–6257 (e-mail address don@nrc.gov).

SUPPLEMENTARY INFORMATION:

I. Background

II. Public Comments on the Proposed Rule

III. Response to Public Comments

IV. Agreement State Compatibility

V. Environmental Impact: Categorical

Exclusion

VI. Paperwork Reduction Act Statement

VII. Regulatory Analysis

VIII. Regulatory Flexibility Certification

IX. Backfit Analysis

X. Small Business Regulatory Enforcement

Fairness Act

I. Background

A petition for rulemaking was

received from mb-microtec, Inc. (RPM–

32–4), and noticed for public comment

on October 29, 1993 (58 FR 53670). This

petition requested that those timepieces

having GTLS be placed on the same

regulatory basis as timepieces with

luminous tritium paint. No public

comments were received on the notice.

NRC regulations that are relevant to

this petition are the following:

1. Under 10 CFR 30.15(a)(1), persons

who receive, possess, use, transfer, own,

or acquire timepieces containing

byproduct material are exempted from

NRC’s licensing requirements provided

that not more than the following

quantities of byproduct material are

contained in the timepiece or hands or

dials:

(I) 25 mCi of tritium per timepiece;

(ii) 5 mCi of tritium per hand;

(iii) 15 mCi of tritium per dial (bezels,

when used, shall be considered part of

the dial).

Quantity limits for timepieces

containing promethium-147 are also

included.

2. Broad general requirements in

§ 32.14(d)(1) are applicable to the

method of containment or binding of the

byproduct material incorporated into

the products specified in 10 CFR 30.15.

Specific prototype testing requirements

for tritium-painted dials, watch hands,

and pointers are also provided in

§ 32.14(d)(1). No prototype testing

procedures are provided for timepieces

containing GTLS.

3. An exemption from licensing

requirements in § 30.19 is similar to that

found in 10 CFR 30.15(a)(1) with respect

to self-luminous products containing

tritium, krypton-85, or promethium-147;

but unlike § 30.15(a)(1), it does not limit

the quantity of these radionuclides that

may be incorporated into various parts

of the product. However, It does require

persons who manufacture, process,

produce, or initially transfer such

products to apply for a specific license

under § 32.22.

4. An extensive list of requirements in

§ 32.22 must be met in order to obtain

a specific license to distribute such

products, and § 32.23 and § 32.24

provide safety criteria that must be

demonstrated prior to issuance of a

license to distribute such products.

The petitioner stated that current

regulations were overburdensome and

counterproductive, and that watch

manufacturers do not want to become

involved with the present licensing

procedures required under § 32.22

concerning GTLS watches.

The NRC believes that the health and

safety impact from using timepieces

with GTLS would likely be positive

because the radiation dose to the public

from the use, storage, distribution, etc.,

of timepieces using GTLS is less than

the dose to the public from timepieces

containing tritium paint if the same

amount of tritium is used in both types

of timepieces. This is because the

tritium leak rate from timepieces using

GTLS is lower than from timepieces

using tritium paint because of

significantly lower tritium leak rates

from sealed glass tubes than from

timepieces containing the same amount

of tritium as paint. Thus, allowing the

exempt distribution of timepieces using

GTLS under the same regulatory

requirements as those used for

timepieces containing tritium paint

could result in a lower dose to an

individual and a lower collective dose

to the public. The distribution of

timepieces containing larger quantities

of gaseous tritium (up to 200 mCi) has

been approved for use under § 32.22,

‘‘Self-luminous products.’’ These

timepieces have been evaluated against

the safety criteria specified in §§ 32.22,

32.23, and 32.24 and have been found

acceptable.

The NRC believes that including

GTLS in § 32.14(d) to allow their

exempt distribution for use under

§ 30.15 would reduce unnecessary

burdens for both the licensees and the

NRC. Without the adoption of this

alternative, licensees have to

manufacture timepieces under the

stringent criteria in §§ 32.22, 32.23, and

32.24. The NRC must also review

product design against these

requirements. Because these stringent

requirements are not deemed necessary

for smaller quantities of tritium, these

burdens could be avoided without

affecting public health and safety. Based

upon the foregoing, the NRC has

concluded that the distribution under

§ 30.15 and § 32.14 should be allowed.

On September 19, 1997 (62 FR 49173),

the NRC published a proposed rule that

incorporated the petition in part, by

removing the existing specific testing

procedures for tritium from the

regulations and leaving only a modified

first sentence in § 32.14(d)(1):

(1) The method of containment or

binding of the byproduct material in the

product is such that the radioactive

material will be bound and will not

become detached from the product

under the most severe conditions which

are likely to be encountered in normal

use and handling.

This modification of § 32.14(d)(1)

represented a performance-based

approach by removing the existing

specific testing procedures from the

regulations and was expected to provide

increased flexibility in the regulations

and the accommodation of future

developments in the technology of

tritium illuminated timepieces, as well