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contains regulatory documents having general

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are keyed to and codified in the Code of

Federal Regulations, which is published under

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Rules and Regulations Federal Register

45673 

Vol. 79, No. 151 

Wednesday, August 6, 2014 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 945 

[Doc. No. AMS–FV–14–0046; FV14–945–2 

IR] 

Irish Potatoes Grown in Certain 

Designated Counties in Idaho, and 

Malheur County, Oregon; Modification 

of Container Requirements 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Interim rule with request for 

comments. 

SUMMARY: This rule modifies the 

container requirements currently 

prescribed under the Idaho-Eastern 

Oregon potato marketing order (order). 

The order regulates the handling of 

potatoes grown in certain designated 

counties in Idaho, and Malheur County, 

Oregon and is administered locally by 

the Idaho-Eastern Oregon Potato 

Committee (Committee). This rule 

removes the requirement that fiberboard 

cartons used to pack 50-pound 

quantities of U.S. No. 2 grade potatoes 

be of one-piece construction. This 

change is needed to respond to market 

demands and to provide handlers 

flexibility in shipping U.S. No. 2 grade 

potatoes. In addition, this rule makes a 

change to the order’s handling 

regulations to correct a citation 

reference. 

DATES: August 7, 2014; comments 

received by October 6, 2014 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 and Agreement Division, Fruit 

and Vegetable Program, 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: Sue 

Coleman, Marketing Specialist, or Gary 

D. Olson, Regional Director, Northwest 

Marketing Field Office, Marketing Order 

and Agreement Division, Fruit and 

Vegetable Program, AMS, USDA; 

Telephone: (503) 326–2724, Fax: (503) 

326–7440, or Email: Sue.Coleman@

ams.usda.gov or GaryD.Olson@

ams.usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Jeffrey Smutny, 

Marketing Order and Agreement 

Division, Fruit and Vegetable Program, 

AMS, USDA, 1400 Independence 

Avenue SW., STOP 0237, Washington, 

DC 20250–0237; Telephone: (202) 720– 

2491, Fax: (202) 720–8938, or Email: 

Jeffrey.Smutny@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This rule 

is issued under Marketing Agreement 

No. 98 and Order No. 945, both as 

amended (7 CFR part 945), regulating 

the handling of Irish potatoes grown in 

certain designated counties in Idaho, 

and Malheur County, Oregon, 

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 Orders 

12866, 13563, and 13175. 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. This rule is not intended to 

have retroactive effect. 

The Act provides that administrative 

proceedings must be exhausted before 

parties may file suit in court. Under 

section 608c(15)(A) of the Act, any 

handler subject to an order may file 

with USDA a petition stating that the 

order, any provision of the order, or any 

obligation imposed in connection with 

the order is not in accordance with law 

and request a modification of the order 

or to be exempted therefrom. A handler 

is afforded the opportunity for a hearing 

on the petition. After the hearing, USDA 

would rule on the petition. The Act 

provides that the district court of the 

United States in any district in which 

the handler is an inhabitant, or has his 

or her principal place of business, has 

jurisdiction to review USDA’s ruling on 

the petition, provided an action is filed 

not later than 20 days after the date of 

the entry of the ruling. 

This rule modifies language in the 

order’s administrative rules and 

regulations to remove the requirement 

that fiberboard cartons used to pack 

50-pound quantities of U.S. No. 2 grade 

potatoes must be of one-piece 

construction. This change will allow 

handlers to ship U.S. No. 2 grade 

potatoes in 50-pound fiberboard cartons 

without regard to the construction of the 

carton. The requirement that cartons be 

of natural kraft color and be 

permanently and conspicuously marked 

as to grade will not change as a result 

of this rule. This rule will enable 

handlers to respond to market demands 

and provide greater flexibility in 

shipping U.S. No. 2 grade potatoes. This 

rule was unanimously recommended at 

a Committee meeting on April 22, 2014. 

In addition, this rule makes a change to 

the order’s handling regulations to 

correct references in § 945.341(b)(3)(i) 

and (ii), which currently refers to a 

paragraph that does not exist: (b)(4)(iii). 

The correct reference should be 

(b)(3)(iii). 

Sections 945.51 and 945.52 of the 

order provide authority for the 

establishment and modification of 

regulations applicable to the handling of 

potatoes. Section 945.52(a)(3) 

specifically authorizes the regulation of 

size, capacity, weight, dimensions, 

pack, labeling or marking of the 

container, or containers, which may be 

used in the packaging or handling of 

potatoes, or both. 

Section 945.341 of the order’s 

administrative rules prescribes the 

minimum quality, minimum maturity, 

pack and marking, and inspection 

requirements for handling fresh market 

Idaho-Eastern Oregon potatoes. Section 

945.341(c) prescribes the pack and 


tkelley on DSK3SPTVN1PROD with RULES
45674 Federal Register / Vol. 79, No. 151 / Wednesday, August 6, 2014 / Rules and Regulations 

marking requirements for domestic and 

export shipments of potatoes. Under 

those requirements, cartons of U.S. No. 

2 grade potatoes must be packed in onepiece 50-pound fiberboard cartons of 

natural kraft color provided the cartons 

are permanently and conspicuously 

marked as to grade. Grade requirements 

are based on the U.S. Standards for 

Grades of Potatoes (7 CFR 51.1540– 

51.1566). 

At its telephone meeting on April 22, 

2014, the Committee unanimously 

recommended the relaxation of the 

order’s container requirements to 

remove the one-piece construction 

prerequisite for 50-pound fiberboard 

cartons. The change was recommended 

to allow handlers to ship U.S. No. 2 

grade potatoes in any type of 50-pound 

fiberboard cartons of natural kraft color, 

provided the cartons are permanently 

and conspicuously marked as to grade. 

Handlers reported that food service 

customers are very concerned about the 

one-piece 50-pound cartons because 

they are often damaged in transit. The 

one-piece 50-pound carton has a 

structure that is weaker than that of a 

two-piece 50-pound carton with a 

bottom and a lid. Despite the structure, 

the two-piece 50-pound carton is less 

costly than the one-piece construction 

and could save handlers between $400 

and $1,600 per load, depending on the 

transportation method utilized. 

Additionally, handlers expressed the 

need for the mandatory grade markings 

to only be required on the top portion 

of a multi-piece 50-pound carton. This 

would enable handlers to save money 

by allowing them to use a uniform, 

unmarked bottom piece for different 

grades of potatoes. The lid of the multipiece 50-pound carton would continue 

to be required to have the grade 

permanently and conspicuously 

marked. 

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 

businesses subject to such actions in 

order that small businesses will not be 

unduly or disproportionately burdened. 

Marketing orders issued pursuant to the 

Act, and the rules issued thereunder, are 

unique in that they are brought about 

through group action of essentially 

small entities acting on their own 

behalf. 

There are approximately 450 

producers of potatoes in the production 

area and approximately 32 handlers 

subject to regulation under the 

marketing order. Small agricultural 

producers are defined by the Small 

Business Administration (SBA) as those 

having annual receipts of less than 

$750,000, and small agricultural service 

firms are defined as those whose annual 

receipts are less than $7,000,000 (13 

CFR 121.201). 

During the 2012–2013 fiscal period, 

the most recent for which statistics are 

available, 35,148,900 hundredweight of 

Idaho-Eastern Oregon potatoes were 

inspected under the order and sold into 

the fresh market. Based on information 

provided by the National Agricultural 

Statistics Service, the average producer 

price for the 2012 Idaho potato crop was 

$5.30 per hundredweight. Multiplying 

$5.30 by the shipment quantity of 

35,148,900 hundredweight yields an 

annual crop revenue estimate of 

$186,289,170. The average annual fresh 

potato revenue for each of the 450 

producers is therefore calculated to be 

$413,396 ($186,289,170 divided by 450), 

which is less than the SBA threshold of 

$750,000. Consequently, on average 

almost all of the Idaho-Eastern Oregon 

potato producers may be classified as 

small entities. 

In addition, based on information 

reported by USDA’s Market News 

Service, the average f.o.b. shipping 

point price for the 2012 Idaho potato 

crop was $5.87 per hundredweight. 

Multiplying $5.87 by the shipment 

quantity of 35,148,900 hundredweight 

yields an annual crop revenue estimate 

of $206,324,043. The average annual 

fresh potato revenue for each of the 32 

handlers is therefore calculated to be 

$6,447,626 ($206,324,043 divided by 

32), which is less than the SBA 

threshold of $7,000,000. Consequently, 

on average most all of the Idaho-Eastern 

Oregon potato handlers may be 

classified as small entities. 

This rule relaxes the container 

requirements to allow handlers to ship 

U.S. No. 2 grade potatoes in any type of 

50-pound fiberboard cartons of natural 

kraft color, provided the cartons are 

permanently and conspicuously marked 

as to grade. This will enable handlers to 

respond to market demands and to 

provide greater flexibility in shipping 

U.S. No. 2 grade potatoes. In addition, 

this rule makes changes to the order’s 

handling regulations to correct a citation 

reference. 

The authority for the establishment of 

pack and marking requirements is 

provided in § 945.52 of the order. 

Section 945.341(c) of the order’s 

administrative rules prescribes the pack 

and marking requirements for domestic 

and export shipments of potatoes. 

The Committee believes that the 

recommendation should increase the 

sale of U.S. No. 2 grade potatoes. This 

action is expected to further increase the 

shipments of U.S. No. 2 potatoes to the 

food service industry and help the 

Idaho-Eastern Oregon potato industry 

benefit from the recent increased growth 

in demand from the food service 

industry sector. The benefits of this rule 

are not expected to be 

disproportionately greater or lesser for 

small entities than large entities. 

Prior to arriving at this container 

recommendation, the Committee 

considered information from the Idaho 

Potato Commission and the Idaho 

Grower Shippers Association. The 

Committee also discussed several 

alternatives to this recommendation 

including leaving the current 

requirement in place. However, the 

Committee believed that it was 

important to be able to respond to 

changing market conditions and meet 

customer needs. The Committee will 

monitor the quantity of U.S. No. 2 grade 

potatoes shipped in multi-piece 50- 

pound fiberboard cartons of natural 

kraft color and evaluate if any further 

modification to the order’s container 

requirements is necessary. 

In accordance with the Paperwork 

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

Chapter 35), the order’s information 

collection requirements have been 

previously approved by the Office of 

Management and Budget (OMB) and 

assigned OMB No. 0581–0178 (Generic 

Vegetable and Specialty Crops). No 

changes in those requirements as a 

result of this action are necessary. 

Should any changes become necessary, 

they would be submitted to OMB for 

approval. 

This rule will not impose any 

additional reporting or recordkeeping 

requirements on either small or large 

Idaho-Eastern Oregon 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. 

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. 


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Federal Register / Vol. 79, No. 151 / Wednesday, August 6, 2014 / Rules and Regulations 45675 

Further, the Committee meeting was 

widely publicized throughout the IdahoEastern Oregon potato industry and all 

interested persons were invited to 

attend the meeting and participate in 

Committee deliberations. Like all 

Committee meetings, the April 22, 2014, 

meeting was a public meeting and all 

entities, both large and small, were able 

to express their views on this issue. 

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/ 

MarketingOrdersSmallBusinessGuide. 

Any questions about the compliance 

guide should be sent to Jeffrey Smutny 

at the previously mentioned address in 

the FOR FURTHER INFORMATION CONTACT

section. 

This rule invites comments on a 

change to the container requirements 

currently prescribed under the IdahoEastern Oregon potato marketing order. 

Any comments received will be 

considered prior to finalization of this 

rule. 

After consideration of all relevant 

material presented, including the 

Committee’s recommendation, and 

other information, it is found that this 

interim 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) Handlers are currently 

shipping Idaho-Eastern Oregon potatoes; 

(2) this action relaxes current container 

requirements; (3) the Committee 

unanimously recommended this change 

at a public meeting and interested 

parties had an opportunity to provide 

input; and (4) this rule provides a 60- 

day comment period and any comments 

received will be considered prior to 

finalization of this rule. 

List of Subjects in 7 CFR Part 945 

Marketing agreements, Potatoes, 

Reporting and recordkeeping 

requirements. 

For the reasons set forth in the 

preamble, 7 CFR part 945 is amended as 

follows: 

PART 945—IRISH POTATOES GROWN 

IN CERTAIN DESIGNATED COUNTIES 

IN IDAHO, AND MALHEUR COUNTY, 

OREGON 

■ 1. The authority citation for 7 CFR 

part 945 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

§ 945.341 [Amended] 

■ 2. In § 945.341(b)(3)(i) and (ii), remove 

the reference ‘‘(b)(4)(iii)’’ and add in its 

place the reference ‘‘(b)(3)(iii)’’. 

■ 3. In § 945.341(c)(2)(ii), remove the 

word ‘‘one-piece’’. 

Dated: July 31, 2014. 

Rex A. Barnes, 

Associate Administrator, Agricultural 

Marketing Service. 

[FR Doc. 2014–18606 Filed 8–5–14; 8:45 am] 

BILLING CODE P 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Parts 732, 738, 740, 742, 744, 

746 and 774 

[Docket No. 140729634–4638–01] 

RIN 0694–AG25 

Russian Oil Industry Sanctions and 

Addition of Person to the Entity List 

AGENCY: Bureau of Industry and 

Security, Commerce. 

ACTION: Final rule. 

SUMMARY: In this rule, the Bureau of 

Industry and Security (BIS) amends the 

Export Administration Regulations 

(EAR) by adding one person to the 

Entity List. The person who is added to 

the Entity List is located in Russia and 

has been determined by the U.S. 

Government to be acting contrary to the 

national security or foreign policy 

interests of the United States. This 

person will be listed on the Entity List 

under the destination of Russia. 

This rule also imposes controls on 

certain items for use in Russia’s energy 

sector intended for energy exploration 

or production from deepwater (greater 

than 500 feet), Arctic offshore, or shale 

projects. 

DATES: Effective date: This rule is 

effective August 6, 2014. 

FOR FURTHER INFORMATION CONTACT: For 

the change to Russia licensing policy 

contact Eileen Albanese, Director, Office 

of National Security and Technology 

Transfer Controls, Bureau of Industry 

and Security, Department of Commerce, 

Phone: (202) 482–0092, Fax: (202) 482– 

3355, Email: rpd2@bis.doc.gov. For 

emails, include ‘‘Russia’’ in the subject 

line. 

For the Entity List-related changes 

contact the Chair, End-User Review 

Committee, Office of the Assistant 

Secretary, Export Administration, 

Bureau of Industry and Security, 

Department of Commerce, Phone: (202) 

482–5991, Fax: (202) 482–3911, Email: 

ERC@bis.doc.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

In this rule, the Bureau of Industry 

and Security (BIS) amends the Export 

Administration Regulations (EAR) to 

impose additional sanctions 

implementing U.S. policy toward Russia 

to address that country’s continuing 

policy of destabilization in Ukraine and 

continuing occupation of Crimea and 

Sevastopol. Specifically, in this rule BIS 

adds one person to the Entity List. In 

addition, this rule imposes controls on 

certain items for use in Russia’s energy 

sector intended for exploration or 

production from deepwater (greater than 

500 feet), Arctic offshore, or shale 

projects that have the potential to 

produce oil or gas in Russia. 

A. The Entity List 

The Entity List (Supplement No. 4 to 

Part 744) notifies the public about 

entities that have engaged in activities 

that could result in an increased risk of 

the diversion of exported, reexported or 

transferred (in-country) items to 

weapons of mass destruction (WMD) 

programs, activities sanctioned by the 

State Department and activities contrary 

to U.S. national security or foreign 

policy interests, including terrorism and 

export control violations involving 

abuse of human rights. Certain exports, 

reexports, and transfers (in-country) to 

entities identified on the Entity List 

require licenses from BIS and are 

usually subject to a policy of denial. The 

availability of license exceptions in 

such transactions is very limited. The 

license review policy for each entity is 

identified in the license review policy 

column on the Entity List and the 

availability of license exceptions is 

noted in the Federal Register notices 

adding persons to the Entity List. BIS 

places entities on the Entity List based 

on certain sections of part 744 (Control 

Policy: End-User and End-Use Based) of 

the EAR. 

The End-User Review Committee 

(ERC), composed of representatives of 

the Departments of Commerce (Chair), 

State, Defense, Energy and, where 

appropriate, the Treasury, makes all 

decisions regarding additions to, 

removals from, or other modifications to 


tkelley on DSK3SPTVN1PROD with RULES