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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

43709 

Vol. 77, No. 144 

Thursday, July 26, 2012 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 966 

[Doc. No. AMS–FV–11–0080; FV11–966–1 

FR] 

Tomatoes Grown in Florida; Increased 

Assessment Rate 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This rule increases the 

assessment rate established for the 

Florida Tomato Committee (Committee) 

for the 2011–12 and subsequent fiscal 

periods from $0.0275 to $0.037 per 25- 

pound carton of tomatoes handled. The 

Committee locally administers the 

marketing order which regulates the 

handling of tomatoes grown in Florida. 

Assessments upon tomato handlers are 

used by the Committee to fund 

reasonable and necessary expenses of 

the program. The fiscal period begins 

August 1 and ends July 31. The 

assessment rate will remain in effect 

indefinitely unless modified, 

suspended, or terminated. 

DATES: Effective Date: July 27, 2012. 

FOR FURTHER INFORMATION CONTACT: 

Doris Jamieson, Marketing Specialist, or 

Christian D. Nissen, Regional Director, 

Southeast Marketing Field Office, 

Marketing Order and Agreement 

Division, Fruit and Vegetable Program, 

AMS, USDA; Telephone: (863) 324– 

3375, Fax: (863) 325–8793, or Email: 

Doris.Jamieson@ams.usda.gov or 

Christian.Nissen@ams.usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Laurel May, 

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: 

Laurel.May@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This rule 

is issued under Marketing Agreement 

No. 125 and Order No. 966, both as 

amended (7 CFR part 966), regulating 

the handling of tomatoes grown in 

Florida, hereinafter referred to as the 

‘‘order.’’ The order is effective under the 

Agricultural Marketing Agreement Act 

of 1937, as amended (7 U.S.C. 601–674), 

hereinafter referred to as the ‘‘Act.’’ 

The Department of Agriculture 

(USDA) is issuing this rule in 

conformance with Executive Order 

12866. 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. Under the marketing order now 

in effect, Florida tomato 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 tomatoes 

beginning August 1, 2011, and continue 

until amended, suspended, or 

terminated. 

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. Such 

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 increases the assessment 

rate established for the Committee for 

the 2011–12 and subsequent fiscal 

periods from $0.0275 to $0.037 per 25- 

pound carton of tomatoes. 

The Florida tomato marketing order 

provides authority for the Committee, 

with the approval of USDA, to formulate 

an annual budget of expenses and 

collect assessments from handlers to 

administer the program. The members 

of the Committee are producers of 

Florida tomatoes. They are 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 assessment rate is 

formulated and discussed in a public 

meeting. Thus, all directly affected 

persons have an opportunity to 

participate and provide input. 

For the 2009–10 and subsequent fiscal 

periods, the Committee recommended, 

and USDA approved, an assessment rate 

that would continue in effect from fiscal 

period to fiscal period unless modified, 

suspended, or terminated by USDA 

upon recommendation and information 

submitted by the Committee or other 

information available to USDA. 

The Committee met on August 23, 

2011, and unanimously recommended 

2011–12 expenditures of $1,496,452 and 

an assessment rate of $0.037 per 25- 

pound carton of tomatoes. In 

comparison, last year’s budgeted 

expenditures were $1,496,971. The 

assessment rate of $0.037 is $0.0095 

higher than the rate currently in effect. 

The Committee estimates the 2011– 

2012 crop to be approximately 35 

million 25-pound cartons, down from 

the 45 million cartons estimated for last 

year. At the current assessment rate, 

assessment income would equal only 

$962,500, an amount insufficient to 

cover the Committee’s anticipated 

expenditures. Therefore, the Committee 

voted to increase the assessment rate in 

order to generate sufficient funds to 

meet Committee expenses. 

The major expenditures 

recommended by the Committee for the 

2011–12 year include $575,000 for 

education and promotion, $436,372 for 

salaries, $250,000 for research, and 

$64,000 for office space. Budgeted 

expenses for these items in 2010–11 

were $535,500, $436,372, $250,000, and 

$62,283, respectively. 

The assessment rate recommended by 

the Committee was derived by dividing 

anticipated expenses by expected 

shipments of Florida tomatoes. Tomato 

shipments for the year are estimated at 

35 million 25-pound cartons which 

should provide $1,295,000 in 

assessment income. Income derived 

from handler assessments, along with 

interest income, USDA Market Access 

Program (MAP) funds, and funds from 

the Committee’s authorized reserve, 


rmajette on DSK2TPTVN1PROD with RULES
43710 Federal Register / Vol. 77, No. 144 / Thursday, July 26, 2012 / Rules and Regulations 

should be adequate to cover budgeted 

expenses. Funds in the reserve 

(approximately $200,000) will be kept 

within the maximum permitted by the 

order of not to exceed one fiscal period’s 

expenses as stated in § 966.44. 

The assessment rate established in 

this rule will continue in effect 

indefinitely unless modified, 

suspended, or terminated by USDA 

upon recommendation and information 

submitted by the Committee or other 

available information. 

Although this assessment rate will be 

in effect 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 

USDA. Committee meetings are open to 

the public and interested persons may 

express their views at these meetings. 

USDA will evaluate Committee 

recommendations and other available 

information to determine whether 

modification of the assessment rate is 

needed. Further rulemaking will be 

undertaken as necessary. The 

Committee’s 2011–12 budget and those 

for subsequent fiscal periods would be 

reviewed and, as appropriate, approved 

by USDA. 

Final 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 

rule on small entities. Accordingly, 

AMS has prepared this final 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. 

There are approximately 100 

producers of tomatoes in the production 

area and approximately 80 handlers 

subject to regulation under the 

marketing order. Small agricultural 

producers are defined by the Small 

Business Administration (SBA) as those 

having annual receipts 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). 

Based on industry and Committee 

data, the average annual price for fresh 

Florida tomatoes during the 2010–11 

season was approximately $13.88 per 

25-pound container, and total fresh 

shipments for the 2010–11 season were 

36,100,637 25-pound cartons of 

tomatoes. Committee data indicates that 

approximately 21 percent of the 

handlers handle 90 percent of the total 

volume shipped. Based on the average 

price, about 80 percent of handlers 

could be considered small businesses 

under SBA’s definition. In addition, 

based on production data, grower prices 

as reported by the National Agricultural 

Statistics Service, and the total number 

of Florida tomato growers, the average 

annual grower revenue is below 

$750,000. Thus, the majority of handlers 

and producers of Florida tomatoes may 

be classified as small entities. 

This rule increases the assessment 

rate established for the Committee and 

collected from handlers for the 2011–12 

and subsequent fiscal periods from 

$0.0275 to $0.037 per 25-pound carton 

of tomatoes. The Committee 

unanimously recommended 2011–12 

expenditures of $1,496,452 and an 

assessment rate of $0.037 per 25-pound 

carton of tomatoes. The assessment rate 

of $0.037 is $0.0095 higher than the 

2010–11 rate. The quantity of assessable 

tomatoes for the 2011–12 season is 

estimated at 35 million cartons. Thus, 

the $0.037 rate should provide 

$1,295,000 in assessment income. 

Income derived from handler 

assessments, along with interest income, 

MAP funds, and funds from the 

Committee’s authorized reserve fund, 

should be adequate to meet this year’s 

expenses. 

The major expenditures 

recommended by the Committee for the 

2011–12 year include $575,000 for 

Education and Promotion, $436,372 for 

salaries, $250,000 for research, and 

$64,000 for office space. Budgeted 

expenses for these items in 2010–11 

were $535,500, $436,372, $250,000, and 

$62,283, respectively. 

The Committee estimates the 2011–12 

crop to be approximately 35 million 25- 

pound cartons, down from the 45 

million cartons estimated for last year. 

At the current assessment rate, 

assessment income would equal only 

$962,500, an amount insufficient to 

cover the Committee’s anticipated 

expenditures. Therefore, the Committee 

voted to increase the assessment rate in 

order to generate sufficient funds to 

meet Committee expenses. 

The Committee reviewed and 

unanimously recommended 2011–12 

expenditures of $1,496,452. Prior to 

arriving at this budget, the Committee 

considered information from various 

sources, such as the Committee’s 

Executive Subcommittee, Finance 

Subcommittee, and Education and 

Promotion Subcommittee. Alternative 

expenditure levels were discussed by 

these groups, based upon the relative 

value of various education and 

promotion projects to the tomato 

industry. The assessment rate of $0.037 

per 25-pound carton of assessable 

tomatoes was then determined by 

dividing the total recommended budget 

by the quantity of assessable tomatoes, 

estimated at 35 million 25-pound 

cartons for the 2011–12 year. The 

increased assessment rate should 

provide $1,295,000 in assessment 

income. This is approximately $201,452 

below the anticipated expenses, which 

the Committee determined to be 

acceptable. 

A review of historical information and 

preliminary information pertaining to 

the upcoming crop year indicates that 

the grower price for the 2011–12 season 

could range between $32.80 and $4.83 

per 25-pound carton of tomatoes. 

Therefore, the estimated assessment 

revenue for the 2011–12 crop year as a 

percentage of total grower revenue 

could range between .1 and .8 percent. 

This action increases the assessment 

obligation imposed on handlers. While 

assessments impose some additional 

costs on handlers, the costs are minimal 

and uniform on all handlers. Some of 

the additional costs may be passed on 

to producers. However, these costs are 

offset by the benefits derived by the 

operation of the marketing order. In 

addition, the Committee’s meeting was 

widely publicized throughout the 

Florida tomato industry and all 

interested persons were invited to 

attend the meeting and participate in 

Committee deliberations on all issues. 

Like all Committee meetings, the August 

23, 2011, meeting was a public meeting 

and all entities, both large and small, 

were able to express views on this issue. 

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 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 imposes no additional 

reporting or recordkeeping requirements 

on either small or large Florida tomato 

handlers. As with all Federal marketing 

order programs, reports and forms are 

periodically reviewed to reduce 


rmajette on DSK2TPTVN1PROD with RULES
Federal Register / Vol. 77, No. 144 / Thursday, July 26, 2012 / Rules and Regulations 43711 

information requirements and 

duplication by industry and public 

sector agencies. As noted in the initial 

regulatory flexibility analysis, USDA 

has not identified any relevant Federal 

rules that duplicate, overlap, or conflict 

with this final rule. 

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. 

A proposed rule concerning this 

action was published in the Federal 

Register on April 10, 2012 (77 FR 

21492). Copies of the proposed rule 

were also mailed or sent via facsimile to 

all tomato handlers. Finally, the 

proposal was made available through 

the Internet by USDA and the Office of 

the Federal Register. A 15-day comment 

period ending April 25, 2012, was 

provided for interested persons to 

respond to the proposal. Three 

comments were received in support of 

the proposal. One commenter stated that 

he initially had concerns regarding the 

increase in the assessment rate. 

However, after reviewing the 

Committee’s budget of expenditures and 

noting that the increase is paid 

uniformly among all handlers, he stated 

the increase was necessary and fairly 

distributed. Another commenter noted 

that the increase is necessary due to the 

rising prices of goods and services and 

is only proposed to cover budgeted 

expenses. Another commenter stated the 

increase would improve the income for 

local farmers. 

Accordingly, no changes will be made 

to the rule as proposed, based on the 

comments received. 

A small business guide on complying 

with fruit, vegetable, and specialty crop 

marketing agreements and orders may 

be viewed at: www.ams.usda.gov/ 

MarketingOrdersSmallBusinessGuide. 

Any questions about the compliance 

guide should be sent to Laurel May at 

the previously mentioned address in the 

FOR FURTHER INFORMATION CONTACT

section. 

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 also found 

and determined that good cause exists 

for not postponing the effective date of 

this rule until 30 days after publication 

in the Federal Register because 

handlers are already receiving 2011–12 

crop tomatoes from growers; the 

marketing order requires that the rate of 

assessment for each fiscal period apply 

to all assessable tomatoes handled 

during such period; and, the Committee 

needs to have sufficient funds to pay its 

expenses which are incurred on a 

continuous basis. Further, handlers are 

aware of this rule which was 

recommended at a public meeting. Also, 

a 15-day comment period was provided 

for in the proposed rule. 

List of Subjects in 7 CFR Part 966 

Marketing agreements, Reporting and 

recordkeeping requirements, Tomatoes. 

For the reasons set forth in the 

preamble, 7 CFR part 966 is amended as 

follows: 

PART 966—TOMATOES GROWN IN 

FLORIDA 

■ 1. The authority citation for 7 CFR 

part 966 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. Section 966.234 is revised to read 

as follows: 

§ 966.234 Assessment rate. 

On and after August 1, 2011, an 

assessment rate of $0.037 per 25-pound 

carton is established for Florida 

tomatoes. 

Dated: July 20, 2012. 

David R. Shipman, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. 2012–18317 Filed 7–25–12; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Part 774 

The Commerce Control List 

CFR Correction 

In Title 15 of the Code of Federal 

Regulations, Parts 300 to 799, revised as 

of January 1, 2012, in supplement no. 1 

to part 774, make the following 

corrections: 

1. In Category 3: 

A. On page 766, in 3A001, remove the 

second entry for c.1.b.1. 

B. On page 768, in 3A002, remove the 

second paragraph ‘‘CIV’’. 

C. On page 782, in 3C001, under 

‘‘Items:’’ remove ‘‘a. Silicon;’’. 

2. In Category 4: 

A. On page 790, in 4A994, in the 

heading correct ‘‘therefore’’ to read 

‘‘therefor’’. 

B. On page 793, in 4E993, remove 

paragraph c. 

3. In Category 5: 

A. On page 794, in part I, in 5A001, 

add ‘‘or antennae’’ after ‘‘Unit: 

Equipment’’. 

B. On page 798, in part I, in 5A991, 

remove the note following 

paragraph c.2. 

C. On page 803, in part II, in 5A003, 

in the table for ‘‘License 

Requirements’’, remove the entry 

for EI and place it below the table 

as an indented paragraph. 

D. On page 805, in part II, above 

5D002, add the headings ‘‘C. 

Materials—[Reserved]’’ and ‘‘D. 

Software’’. 

E. On page 805, in part II, in 5D002, 

in the table for ‘‘License 

Requirements’’, remove the entry 

for EI and place it below the table 

as an indented paragraph. 

F. On page 806, in part II, in 5E002, 

in the License Requirement Note, 

remove ‘‘5D002.a or 5D002.c’’ and 

insert ‘‘5D002’’ in its place. 

G. On page 806, in part II, in 5E002, 

after the License Requirement Note, 

remove ‘‘Refer to § 742.15 of the 

EAR’’. 

H. On page 807, in part II, in 5E002, 

after ‘‘Related Controls’’ and before 

‘‘Items’’, add ‘‘Related Definitions: 

N/A’’. 

[FR Doc. 2012–18365 Filed 7–25–12; 8:45 am] 

BILLING CODE 1505–01–D 

DEPARTMENT OF ENERGY 

Federal Energy Regulatory 

Commission 

18 CFR Part 284 

[Docket No. RM96–1–037; Order No. 

587–V] 

Standards for Business Practices of 

Interstate Natural Gas Pipelines 

AGENCY: Federal Energy Regulatory 

Commission. 

ACTION: Final rule. 

SUMMARY: In this Final Rule, the Federal 

Energy Regulatory Commission 

(Commission) amends its regulations to 

incorporate by reference the latest 

version (Version 2.0) of certain business 

practice standards adopted by the 

Wholesale Gas Quadrant (WGQ) of the 

North American Energy Standards 

Board (NAESB) applicable to natural gas 

pipelines. In addition, based on the 

minor corrections and errata made by 

NAESB and reported to the Commission 

on May 4, 2012, the Commission will 

incorporate by reference certain 

standards that it earlier proposed not to 


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