This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents.

Rules and Regulations Federal Register

54339 

Vol. 86, No. 188 

Friday, October 1, 2021 

1Secretary’s Memorandum 1076–030 (July 1, 

2019), available at https://www.ocio.usda.gov/ 

document/secretarys-memorandum-1076-030. 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 870 

Commodity Credit Corporation 

7 CFR Part 1427 

[Doc. No. AMS–LRRS–21–0047] 

Reorganization and Transfer of 

Regulations 

AGENCY: Agricultural Marketing Service; 

Commodity Credit Corporation, USDA. 

ACTION: Final rule. 

SUMMARY: This rule transfers regulations 

pertaining to the Economic Adjustment 

Assistance for Textile Manufacturers 

program from the Commodity Credit 

Corporation (CCC) to the Agricultural 

Marketing Service (AMS) to reflect 

changes in the organizational structure 

and delegated authorities within the 

United States Department of Agriculture 

(USDA). This action is necessary to 

enable the AMS Administrator to issue, 

maintain, and revise as necessary 

regulations related to programs under 

the AMS Administrator’s delegated 

authority. 

DATES: Effective October 1, 2021. 

FOR FURTHER INFORMATION CONTACT: 

Laurel May, Regulatory Analyst, 

Legislative and Regulatory Review Staff, 

Office of the Administrator, AMS, 

USDA; Telephone: (202) 384–2975, or 

Email: Laurel.May@usda.gov. 

SUPPLEMENTARY INFORMATION: Congress 

directed the Secretary of Agriculture 

(Secretary) to provide economic 

adjustment assistance to domestic users 

of upland cotton under the Economic 

Adjustment Assistance to Users of 

Upland Cotton program in section 

1207(c) of the Food, Conservation, and 

Energy Act of 2008 (Pub. L. 110–234; 

May 22, 2008). Under the program 

domestic users of upland cotton may 

qualify for financial assistance that can 

be used to acquire, construct, install, 

modernize, develop, convert, or expand 

land, plant, buildings, equipment, 

facilities, or machinery. Payments for 

such assistance are issued by CCC. 

Section 1203(b) of the Agriculture 

Improvement Act of 2018 (Pub. L. 115– 

334; December 20, 2018) renamed the 

program ‘‘Economic Assistance 

Adjustment to Textile Mills’’ (EAATM). 

Regulations implementing the EAATM 

are found at 7 CFR part 1427, in subpart 

C, in §§ 1427.100 to 1427.105. 

In a memorandum dated July 1, 

2019,1 the Secretary redelegated 

authority to administer EAATM from 

the Farm Service Agency to the 

Agricultural Marketing Service (AMS). 

A final rule published October 15, 2020 

(85 FR 65500), amended 7 CFR part 2 

to reflect the redelegation. Amended 

§ 2.79(a)(23) authorizes the AMS 

Administrator to administer the EAATM 

program (7 U.S.C. 9037(c)). The 

redelegation of authority necessitates 

the transfer of corresponding regulations 

to AMS, giving the AMS Administrator 

authority to issue, maintain, and revise 

the regulations pertaining to EAATM. 

This final rule completes the necessary 

transfer. 

Overview of Changes 

Currently, Title 7, Chapter XIV, part 

1427 of the Code of Federal Regulations 

(CFR) contains the EAATM regulations 

(in §§ 1427.100 to 1427.105), under CCC 

administration. This final rule removes 

the EAATM regulations from 7 CFR part 

1427 and adds them in a new part 870— 

Economic Adjustment Assistance to 

Textile Mills—to 7 CFR chapter VIII, 

Subchapter B. Currently Subchapter B is 

titled ‘‘Regulations for Warehouses’’ and 

contains part 869—Regulations for the 

United States Warehouse Act (USWA). 

This final rule revises the title for 

Subchapter B to read ‘‘Fair Trade 

Practices’’ to reflect the delegation of 

administrative authority for both USWA 

and EAATM activities to the AMS 

Administrator. The Deputy 

Administrator of AMS’s Fair Trade 

Practices Program (FTPP) oversees 

USWA and EAATM activities for the 

Administrator. Finally, this rule makes 

a conforming change to the text of the 

EAATM regulations to reflect the 

program’s revised name. 

Classification 

This final rule is administrative in 

nature and reflects changes in USDA’s 

organization. Accordingly, pursuant to 5 

U.S.C. 553, notice of proposed 

rulemaking and opportunity for 

comment are not required, and this rule 

may be made effective in fewer than 30 

days after publication in the Federal 

Register. Therefore, this final rule is 

effective upon publication. 

Additionally, this rule is exempt from 

the provisions of Executive Order 

12866, as it is limited to agency 

management. This action is not a rule as 

defined by the Regulatory Flexibility 

Act, as amended by the Small Business 

Regulatory Enforcement Fairness Act of 

1996, 5 U.S.C. 801 et seq., and thus is 

exempt from the provisions of those 

Acts. This rule contains no information 

collection or recordkeeping 

requirements under the Paperwork 

Reduction Act of 1995 (44 U.S.C. 3501 

et seq.). 

The Congressional Review Act (5 

U.S.C. 801 et seq.) provides exemptions 

for rules ‘‘of particular applicability;’’ 

‘‘relating to agency management or 

personnel;’’ or ‘‘of agency organization, 

procedure, or practice that does not 

substantially affect the rights or 

obligations of non-agency parties.’’ This 

action qualifies for this exemption. 

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. 

USDA has not identified any relevant 

Federal rules that duplicate, overlap, or 

conflict with this final rule. 

List of Subjects 

7 CFR Part 870 

Cotton, Payments, Reporting and 

recordkeeping, Textile mills. 

7 CFR Part 1427 

Cotton, Cottonseeds, Loan programsagriculture, Packaging and containers, 

Price support programs, Reporting and 

recordkeeping requirements, Surety 

bonds, Warehouses. 

For the reasons stated in the 

preamble, as authorized by the 

Secretary’s Memorandum implementing 

the Agriculture Improvement Act of 

2018, dated July 1, 2019, the 

54340 Federal Register / Vol. 86, No. 188 / Friday, October 1, 2021 / Rules and Regulations 

Department of Agriculture amends 7 

CFR chapters VIII and XIV as follows: 

TITLE 7—AGRICULTURE 

CHAPTER VIII—AGRICULTURAL 

MARKETING SERVICE (FEDERAL 

GRAIN INSPECTION SERVICE, FAIR 

TRADE PRACTICES PROGRAM), 

DEPARTMENT OF AGRICULTURE 

Subchapter B—Fair Trade Practices 

■ 1. Under the authority of 7 CFR 

2.22(a)(1), revise the heading of 

subchapter B to read as set forth above. 

■ 2. Add part 870 to read as follows: 

PART 870—ECONOMIC ASSISTANCE 

ADJUSTMENT FOR TEXTILE MILLS 

Sec. 

870.1 Applicability. 

870.3 Eligible upland cotton. 

870.5 Eligible domestic users. 

870.7 Upland cotton Domestic User 

Agreement. 

870.9 Payment. 

Authority: 7 U.S.C. 9037(c). 

§ 870.1 Applicability. 

(a) These regulations specify the terms 

and conditions under which the 

Commodity Credit Corporation (CCC) 

will make payments to eligible domestic 

users who have entered into an Upland 

Cotton Domestic User Agreement with 

CCC to participate in the upland cotton 

domestic user program. 

(b) CCC will specify the forms to be 

used in administering the Economic 

Adjustment Assistance for Textile Mills 

program. 

§ 870.3 Eligible upland cotton. 

(a) For purposes of this subpart, 

eligible upland cotton is baled upland 

cotton, regardless of origin, that is 

opened by an eligible domestic user, 

and is either: 

(1) Baled lint, including baled lint 

classified by USDA’s Agricultural 

Marketing Service as Below Grade; 

(2) Loose samples removed from 

upland cotton bales for classification 

purposes that have been rebaled; 

(3) Semi-processed motes that are of 

a quality suitable, without further 

processing, for spinning, papermaking, 

or production of non-woven fabric; or 

(4) Re-ginned (processed) motes. 

(b) Eligible upland cotton must not be: 

(1) Cotton for which a payment, under 

the provisions of this subpart, has been 

made available; 

(2) Raw (unprocessed) motes, pills, 

linters, or other derivatives of the lint 

cleaning process; or 

(3) Textile mill wastes. 

§ 870.5 Eligible domestic users. 

(a) For purposes of this subpart, a 

person regularly engaged in the business 

of opening bales of eligible upland 

cotton for the purpose of spinning, 

papermaking, or processing of nonwoven cotton fabric in the United 

States, who has entered into an 

agreement with CCC to participate in 

the upland cotton user program, will be 

considered an eligible domestic user. 

(b) Applications for payment under 

this subpart must contain 

documentation required by the 

provisions of the Upland Cotton 

Domestic User Agreement and other 

instructions that CCC issues. 

§ 870.7 Upland cotton Domestic User 

Agreement. 

(a) Payments specified in this subpart 

will be made available to eligible 

domestic users who have entered into 

an Upland Cotton Domestic User 

Agreement with CCC and who have 

complied with the terms and conditions 

in this subpart, the Upland Cotton 

Domestic User Agreement, and 

instructions issued by CCC. 

(b) Upland Cotton Domestic User 

Agreements may be obtained from the 

Warehouse and Commodity 

Management Division, P.O. Box 419205, 

Stop 9148, Kansas City, MO 64141– 

6205. In order to participate in the 

program authorized by this subpart, 

domestic users must execute the Upland 

Cotton Domestic User Agreement and 

forward the original and one copy to 

KCCO. 

§ 870.9 Payment. 

(a) The payment rate for purposes of 

calculating payments as specified in this 

subpart is 3 cents per pound. 

(b) Payments specified in this subpart 

will be determined by multiplying the 

payment rate, of 3 cents per pound, by 

(1) In the case of baled upland cotton, 

whether lint, loose samples or reginned 

motes, but not semi-processed motes, 

the net weight of the cotton used (gross 

weight minus the weight of bagging and 

ties); 

(2) In the case of unbaled reginned 

motes consumed, without rebaling, for 

an end use in a continuous 

manufacturing process, the weight of 

the reginned motes after final cleaning; 

and 

(3) In the case of semi-processed 

motes which are of a quality suitable, 

without further processing, for spinning, 

papermaking, or manufacture of nonwoven cotton fabric, 25 percent of the 

weight (gross weight minus the weight 

of bagging and ties, if baled) of the semiprocessed motes; provided further, that 

with respect to semi-processed motes 

that are used prior to August 18, 2010, 

payment may be allowed by CCC in its 

sole discretion at 100 percent of the 

weight as determined appropriate for a 

transition of the program to the 25 

percent factor. 

(c) In all cases, the payment will be 

determined based on the amount of 

eligible upland cotton that an eligible 

domestic user consumed during the 

immediately preceding calendar month. 

For the purposes of this subpart, eligible 

upland cotton will be considered 

consumed by the domestic user on the 

date the bale is opened for 

consumption, or if not baled, the date 

consumed, without further processing, 

in a continuous manufacturing process. 

(d) Payments specified in this subpart 

will be made available upon application 

for payment and submission of 

supporting documentation, as required 

by the CCC-issued provisions of the 

Upland Cotton Domestic User 

Agreement. 

(e) All payments received by the 

eligible domestic user of upland cotton 

must be used for purposes specified in 

7 U.S.C. 9037(c)(3), which include but 

are not limited to, acquisition, 

construction, installation, 

modernization, development, 

conversion, or expansion of land, plant, 

buildings, equipment, facilities, or 

machinery. Such capital expenditures 

must be directly attributable and 

certified as such by the user for the 

purpose of manufacturing upland cotton 

into eligible cotton products in the 

United States. 

CHAPTER XIV—COMMODITY CREDIT 

CORPORATION, DEPARTMENT OF 

AGRICULTURE 

PART 1427—COTTON 

■ 3. The authority citation for part 1427 

continues to read as follows: 

Authority: 7 U.S.C. 7231–7237, 7931– 

7936, 9011, and 9031–40, 15 U.S.C. 714b and 

c. 

Subpart C—[Removed and Reserved] 

■ 4. Remove and reserve subpart C, 

consisting of §§ 1427.100 through 

1427.105. 

Mae Wu, 

Deputy Under Secretary, Marketing and 

Regulatory Programs. 

[FR Doc. 2021–20380 Filed 9–30–21; 8:45 am] 

BILLING CODE 3410–05–P