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

3505

Vol. 66, No. 10

Tuesday, January 16, 2001

1The 1997–1998 crop season is that season in

which wheat was harvested in 1998. The 1999–

2000 crop season is that season in which wheat is

harvested in 2000.

DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection

Service

7 CFR Part 301

[Docket No. 96–016–33]

RIN 0579–AA83

Karnal Bunt; Compensation for the

1999–2000 Crop Season

AGENCY: Animal and Plant Health

Inspection Service, USDA.

ACTION: Proposed rule.

SUMMARY: We are proposing to amend

the Karnal bunt regulations to provide

compensation for certain growers,

handlers, seed companies, owners of

grain storage facilities, flour millers, and

participants in the National Karnal Bunt

Survey who incur losses and expenses

because of Karnal bunt in the 1999–

2000 crop season. The payment of

compensation is necessary in order to

reduce the economic effect of the Karnal

bunt regulations on affected wheat

growers and other individuals and to

help obtain cooperation from affected

individuals in efforts to contain and

reduce the prevalence of Karnal bunt.

DATES: We invite you to comment on

this docket. We will consider all

comments that we receive by March 19,

2001.

ADDRESSES: Please send your comment

and three copies to:

Docket No. 96–016–33, Regulatory

Analysis and Development, PPD,

APHIS, Suite 3C03, 4700 River Road,

Unit 118, Riverdale, MD 20737–1238

Please state that your comment refers

to Docket No. 96–016–33.

You may read any comments that we

receive on this docket in our reading

room. The reading room is located in

room 1141 of the USDA South Building,

14th Street and Independence Avenue,

SW., Washington, DC. Normal reading

room hours are 8 a.m. to 4:30 p.m.,

Monday through Friday, except

holidays. To be sure someone is there to

help you, please call (202) 690–2817

before coming.

APHIS documents published in the

Federal Register, and related

information, including the names of

organizations and individuals who have

commented on APHIS rules, are

available on the Internet at http://

www.aphis.usda.gov/ppd/rad/

webrepor.html.

FOR FURTHER INFORMATION CONTACT: Dr.

Vedpal S. Malik, National Karnal Bunt

Coordinator, PPQ, APHIS, 4700 River

Road Unit 134, Riverdale, MD 20737–

1236; (301) 734–6774.

SUPPLEMENTARY INFORMATION:

Background

Karnal bunt is a fungal disease of

wheat (Triticum aestivum), durum

wheat (Triticum durum), and triticale

(Triticum aestivum X Secale cereale), a

hybrid of wheat and rye. Karnal bunt is

caused by the smut fungus Tilletia

indica (Mitra) Mundkur and is spread

by spores, primarily through the

movement of infected seed. In the

absence of measures taken by the U.S.

Department of Agriculture (USDA) to

prevent its spread, the establishment of

Karnal bunt in the United States could

have significant consequences with

regard to the export of wheat to

international markets. The regulations

regarding Karnal bunt are set forth in 7

CFR 301.89–1 through 301.89–16

(referred to below as the regulations).

Among other things, the regulations

define areas regulated for Karnal bunt

and restrict the movement of certain

regulated articles, including wheat seed

and grain, from the regulated areas.

In a final rule published in the

Federal Register and effective on June

25, 1999 (64 FR 34109–34113, Docket

No. 96–016–35), the Animal and Plant

Health Inspection Service (APHIS)

amended the regulations by adding

compensation provisions for 1997–1998

crop season wheat.1 That final rule

made compensation available for certain

growers, handlers, seed companies,

owners of grain storage facilities, flour

millers, and participants in the National

Karnal Bunt Survey who incurred losses

and expenses because of Karnal bunt in

the 1997–1998 crop season. These

provisions are in § 301.89–15,

‘‘Compensation for growers, handlers,

and seed companies in the 1996–1997

and 1997–1998 crop seasons,’’ and

§ 301.89–16, ‘‘Compensation for grain

storage facilities, flour millers, and

National Survey participants for the

1996–1997 and 1997–1998 crop

seasons.’’

APHIS did not propose to provide

compensation for the 1998–1999 crop

season. Surveys conducted in 1999

determined that no Karnal bunt host

crops harvested in 1999 in the regulated

area were positive for Karnal bunt.

Therefore, no growers, handlers, seed

companies, owners of grain storage

facilities, flour millers, or participants

in the National Karnal Bunt Survey

incurred losses or expenses because of

Karnal bunt for the 1998–1999 crop

season. We have no reason to believe

the situation will be different for this

crop season. However, we are proposing

to establish compensation provisions for

the 1999–2000 crop season so that, if

Karnal bunt is detected, compensation

may be provided in a timely manner to

those who incur losses or expenses.

In the future, for crop seasons beyond

the 1999–2000 crop season, APHIS will

not propose to provide compensation

for growers, handlers, or seed

companies in regulated areas. These

persons know they are in an area

regulated for Karnal bunt at the time

planting and contracting decisions are

made for future crop seasons.

Understanding the restrictions, growers,

handlers, and seed companies can

choose to alter their planting or contract

decisions to avoid experiencing losses

due to Karnal bunt. However, APHIS

may, for crop seasons beyond the 1999–

2000 crop season, propose to provide

compensation for National Karnal Bunt

Survey participants whose wheat or

grain storage facility tests positive for

Karnal bunt. We expect, however, that

the proposed compensation for these

persons would be limited to one crop

season.

We expect that any costs to growers

and other entities related to the Karnal

bunt program in the 1999–2000 crop

season would be similar to those

incurred in the 1997–1998 crop season.

Therefore, we are proposing to amend

the regulations to provide the same

compensation for the 1999–2000 crop

season as was provided in the 1997–

1998 crop season.

3506 Federal Register / Vol. 66, No. 10 / Tuesday, January 16, 2001 / Proposed Rules

Compensation for Growers and

Handlers

Section 301.89–15 of the regulations

provides compensation to growers and

handlers for the loss in value of wheat

seed and grain from the 1996–1997 and

1997–1998 crop seasons due to Karnal

bunt. We are proposing to make these

provisions apply also to growers,

handlers, and seed companies in the

1999–2000 crop season.

The compensation in § 301.89–15 is

for wheat grain, certified wheat seed,

and wheat grown with the intention of

producing certified wheat seed. The

compensation calculation for certified

wheat seed and wheat grown with the

intention of producing certified wheat

seed is the same as that offered for

wheat grain. Requiring that wheat seed

be certified or grown with the intention

of producing certified wheat seed

ensures that the compensation is limited

to market-ready seed and will not be

paid for seed in other stages of

development. Further, the

compensation in § 301.89–15 is only for

wheat that was tested by APHIS and

found positive for Karnal bunt.

For the 1996–1997 and 1997–1998

crop seasons, § 301.89–15 provides two

different levels of compensation for

growers and handlers of positive wheat,

depending on which of the following

two sets of circumstances applies: (1)

The wheat is from an area that became

regulated for Karnal bunt after the 1996–

1997 crop or 1997–1998 crop was

planted, or for which an Emergency

Action Notification (PPQ Form

523)(EAN) was issued after the 1996–

1997 crop or 1997–1998 crop was

planted, and that remained regulated or

under an EAN at the time the wheat was

sold; or (2) the wheat is from an area

that became regulated for Karnal bunt

before the 1996–1997 crop or 1997–1998

crop was planted, or for which an EAN

was issued before the 1996–1997 crop or

1997–1998 crop was planted, and that

remained regulated or under an EAN at

the time the wheat was sold. These

areas are called ‘‘areas under the first

regulated crop season’’ and ‘‘previously

regulated areas,’’ respectively. Growers,

handlers, and seed companies in areas

under the first regulated crop season

would not have known that their area

was to become regulated for Karnal bunt

at the time they made their planting and

many of their contracting decisions and

would not have been prepared for the

loss in value of their wheat due to

Karnal bunt. Growers, handlers, and

seed companies in previously regulated

areas knew they were in an area

regulated for Karnal bunt at the time

planting and contracting decisions were

made for the 1996–1997 or 1997–1998

crop season. Understanding the

restrictions, growers, handlers, and seed

companies could have chosen to alter

their planting or contract decisions to

avoid experiencing losses due to Karnal

bunt. The 1999–2000 crop season is the

fifth regulated crop season for most

regulated areas. The compensation

provisions for areas under the first

regulated crop season are in § 301.89–

15(a); the compensation provisions for

previously regulated areas are in

§ 301.89–15(b).

First Regulated Crop Season

At the present time, there are no areas

that meet the first regulated crop season

criteria for 1999–2000. We would

consider all areas that are currently

regulated to be previously regulated

areas for the 1999–2000 crop season.

APHIS is continuing to monitor for

Karnal bunt throughout wheat

producing areas in the United States. If

Karnal bunt is found to exist in an area

outside the currently regulated areas

during the 1999–2000 crop season,

APHIS will regulate that area, and if the

area is under a declaration of

extraordinary emergency, growers and

handlers would be eligible for

compensation for the loss in value of

their wheat in accordance with the

provisions for areas under the first

regulated crop season.

Under § 301.89–15(a), growers,

handlers, and seed companies in areas

under the first regulated crop season

criteria are eligible for compensation for

1996–1997 crop season wheat or 1997–

1998 crop season wheat (as appropriate)

and for wheat inventories in their

possession that were unsold at the time

the area became regulated. For the

1999–2000 crop season, we would

likewise state that growers, handlers,

and seed companies in areas under the

first regulated crop season criteria are

eligible for compensation for 1999–2000

crop season wheat and for wheat

inventories in their possession that were

unsold at the time the area became

regulated for Karnal bunt.

Under § 301.89–15(a)(1), growers of

wheat in an area under the first

regulated crop season criteria who sell

wheat that was tested by APHIS and

found positive for Karnal bunt prior to

sale, or that was tested by APHIS and

found positive for Karnal bunt after sale

and the price received by the grower is

contingent on the test results, are

eligible to receive compensation as

follows:

• If the wheat was grown under

contract and a price was determined in

the contract before the area where the

wheat was grown became regulated for

Karnal bunt, compensation will equal

the contract price minus the actual price

received by the grower; or

• If the wheat was not grown under

contract or a price was determined in

the contract after the area where the

wheat was grown became regulated for

Karnal bunt, compensation will equal

the estimated market price for the

relevant class of wheat (meaning type of

wheat, such as durum or hard red

winter) minus the actual price received

by the grower.

For both situations described above,

compensation for positive-testing wheat

will not exceed $1.80 per bushel under

any circumstances.

Under § 301.89–15(a)(2), handlers and

seed companies who sell wheat grown

in an area under the first regulated crop

season criteria are eligible to receive

compensation only if the wheat was not

tested by APHIS prior to purchase by

the handler or seed company but was

tested by APHIS and found positive for

Karnal bunt after purchase by the

handler or seed company, as long as the

price to be paid is not contingent on the

test results. Compensation will equal

the estimated market price for the

relevant class of wheat minus the actual

price received by the handler or seed

company. However, compensation for

positive-testing wheat will not exceed

$1.80 per bushel under any

circumstances.

Estimated market prices used in the

compensation calculations described

above for growers and handlers are

calculated by APHIS for each class of

wheat, taking into account the prices

offered by relevant terminal markets

(animal feed, milling, or export) during

the harvest months for the area, with

adjustments for transportation and other

handling costs. Separate estimated

market prices are calculated for certified

wheat seed and wheat grown with the

intention of producing certified wheat

seed and wheat grain.

This proposal would make the

provisions in § 301.89–15(a)(1) and

(a)(2) apply to growers, handlers, and

seed companies in the 1999–2000 crop

season if they have wheat grown in

areas under the first regulated crop

season criteria.

Previously Regulated Areas

As discussed previously in this

document, all of the areas currently

listed as regulated areas in the Karnal

bunt regulations, and all the areas

currently regulated for Karnal bunt

under EAN’s, would be considered to be

previously regulated areas for the 1999–

2000 crop season.

Under § 301.89–15(b), growers,

handlers, and seed companies in

Federal Register / Vol. 66, No. 10 / Tuesday, January 16, 2001 / Proposed Rules 3507

previously regulated areas are eligible

for compensation only for 1996–1997

and 1997–1998 crop season wheat. We

would amend § 301.89–15(b) to state

that growers, handlers, and seed

companies in previously regulated areas

are eligible for compensation under

paragraph (b) only for 1996–1997, 1997–

1998, and 1999–2000 crop season

wheat.

Under § 301.89–15(b), growers who

sell wheat are eligible to receive

compensation only if the wheat was

tested by APHIS and found positive for

Karnal bunt prior to sale, or was tested

by APHIS and found positive for Karnal

bunt after sale and the price received by

the grower is contingent on the test

results. Compensation will be at the rate

of $.60 per bushel of positive testing

wheat. Handlers and seed companies

who sell wheat are eligible to receive

compensation only if the wheat was not

tested by APHIS prior to purchase but

was tested by APHIS and found positive

for Karnal bunt after purchase, as long

as the price to be paid is not contingent

on the test results. Compensation will

be at the rate of $.60 per bushel of

positive-testing wheat. This proposal

would make this same compensation

available to growers, handlers, and seed

companies in the 1999–2000 crop

season.

Growers, Handlers, and Seed

Companies—To Claim Compensation

In past crop seasons, the Farm Service

Agency (FSA) of USDA has processed

Karnal bunt compensation claims from

growers, handlers, and seed companies

for the loss in value of their wheat.

Under this proposal, FSA would

continue to process such claims in the

1999–2000 crop season.

Under § 301.89–15(c), we require

1996–1997 and 1997–1998 crop season

claimants to submit a number of

documents in support of their claim. We

would require the same documents to be

submitted for 1999–2000 crop season

compensation. The requirements in

paragraph (c) are as follows:

Growers, handlers, and seed

companies who are eligible for

compensation under either the

provisions for the first regulated crop

season or the provisions for previously

regulated areas need to provide the

same documents for claiming

compensation, with a few exceptions.

Growers, handlers, and seed companies

must submit a Karnal Bunt

Compensation Claim form, provided by

FSA. If the wheat was grown in an area

that is not a regulated area, but for

which an EAN has been issued, the

grower, handler, or seed company must

submit a copy of the EAN. Growers,

handlers, and seed companies must also

submit a copy of the Karnal bunt

certificate issued by APHIS that shows

the Karnal bunt test results and

verification as to the actual (not

estimated) weight of the wheat that

tested positive (such as a copy of a

facility weigh ticket or other

verification). For compensation claims

for wheat seed, a grower or seed

company must submit documentation

showing that the wheat is either

certified seed or was grown with the

intention of producing certified seed.

This documentation may include one or

more of the following types of

documents: an application to the State

seed certification agency for field

inspection; a bulk sale certificate;

certification tags or labels issued by the

State seed certification agency; or a

document issued by the State seed

certification agency verifying that the

wheat is certified seed.

In addition, growers must submit a

copy of the receipt for the final sale of

the wheat, showing the total bushels

sold and the total price received by the

grower. Growers compensated under the

provisions for areas in the first regulated

crop season must submit a copy of the

contract the grower has for the wheat, if

the wheat was under contract. Growers

compensated under the provisions for

previously regulated areas and who sold

wheat that was not yet tested by APHIS

must submit documentation showing

that the price paid to the grower was

contingent on test results (this

information could appear on the receipt

for the final sale of the wheat or on a

contract the grower has for the wheat, if

the wheat was under contract).

In addition, handlers and seed

companies must provide the FSA office

with a copy of the receipt for the final

sale of the wheat. The handler or seed

company must submit documentation

showing that the price paid or to be paid

to the grower is not contingent on the

test results (this documentation could

appear on the receipt for the purchase

of the wheat from the grower or on a

contract for the purchase of the wheat,

if the wheat was purchased under

contract).

Compensation for Grain Storage

Facilities, Flour Millers, and National

Survey Participants

The June 1999 final rule (Docket No.

96–016–35) also amended § 301.89–16

of the regulations. This section sets forth

compensation provisions for the

decontamination of grain storage

facilities, heat treatment of millfeed, and

losses to National Karnal Bunt Survey

participants whose wheat or grain

storage facility tests positive for Karnal

bunt in the 1996–1997 or 1997–1998

crop season. We are proposing to amend

§ 301.89–16 to make its provisions also

apply to the 1999–2000 crop season.

Decontamination of Grain Storage

Facilities

As part of the Karnal bunt program,

APHIS may require the decontamination

of grain storage facilities that have been

determined by APHIS to be

contaminated with Karnal bunt. For the

1996–1997 and 1997–1998 crop seasons,

§ 301.89–16(a) provides that owners of

grain storage facilities that are in States

where the Secretary has declared an

extraordinary emergency, and who have

decontaminated their grain storage

facilities pursuant to either an EAN

issued by an inspector or a letter issued

by an inspector ordering

decontamination of the facilities, are

eligible to be compensated, on a onetime-only basis for each facility for each

covered crop year wheat, for up to 50

percent of the direct cost of

decontamination. However,

compensation will not exceed $20,000

per grain storage facility. General

cleanup, repair, and refurbishment costs

are excluded from compensation. Under

this proposed rule, this same

compensation would be available to

owners of grain storage facilities in the

1999–2000 crop season.

Paragraph (a) also states that

compensation payments will be issued

by APHIS and sets forth provisions for

claiming compensation. To claim

compensation, the owner of the grain

storage facility must submit to an

inspector records demonstrating that

decontamination was performed on all

structures, conveyances, or materials

ordered by APHIS to be

decontaminated.

The records must include a copy of

the EAN or the letter from an inspector

ordering decontamination, contracts

with individuals or companies hired to

perform the decontamination, receipts

for equipment and materials purchased

to perform the decontamination, time

sheets for employees of the grain storage

facility who performed activities

connected to the decontamination, and

any other documentation that helps

show the cost to the owner and that

decontamination has been completed.

These provisions would also apply to

compensation claims in the 1999–2000

crop season.

Treatment of Millfeed

In the 1996–1997 crop season,

millfeed made from wheat produced in

certain regulated areas was required to

be heat treated in order to help prevent

the spread of Karnal bunt, and we paid

3508 Federal Register / Vol. 66, No. 10 / Tuesday, January 16, 2001 / Proposed Rules

compensation to flour millers who

incurred expenses for heat treatments.

Under a final rule published in the

Federal Register and effective on

September 23, 1998 (63 FR 50747–

50752), only millfeed resulting from the

milling of wheat, durum wheat, or

triticale that tested positive for Karnal

bunt was required to be heat treated.

However, we continued to provide

compensation in the 1997–1998 crop

season at the same rate. In § 301.89–16,

paragraph (b) provides that flour millers

who, in accordance with a compliance

agreement with APHIS, heat treat

millfeed that is required by APHIS to be

heat treated are eligible to be

compensated at the rate of $35.00 per

short ton of millfeed. We would make

this same rate of compensation available

to flour millers in the 1999–2000 crop

season.

Paragraph (b) provides for the 1996–

1997 and 1997–1998 crop seasons that

the amount of millfeed compensated

will be calculated by multiplying the

weight of wheat from the regulated area

received by the miller by 25 percent (the

average percent of millfeed derived from

a short ton of grain). Compensation

payments will be issued by APHIS. To

claim compensation, the miller must

submit to an inspector verification as to

the actual (not estimated) weight of the

wheat (such as a copy of a facility weigh

ticket or a copy of the bill of lading for

the wheat, if the actual weight appears

on those documents, or other

verification). Flour millers must also

submit verification that the millfeed was

heat treated (such as a copy of the

limited permit under which the wheat

was moved to a treatment facility and a

copy of the bill of lading accompanying

that movement; or a copy of PPQ Form

700 (which includes certification of

processing) signed by the inspector who

monitors the mill). This proposed rule

would make these same provisions

apply to compensation claims for heat

treatment of millfeed in the 1999–2000

crop season.

National Karnal Bunt Survey

Participants

Each year since 1996, APHIS has

conducted a National Karnal Bunt

Survey to demonstrate to our trading

partners that areas producing wheat for

export are free of the disease. In past

crop seasons, we offered compensation

to participants in the Survey whose

wheat or grain storage facility tested

positive for Karnal bunt, if the

participant is in a State in which the

Secretary of Agriculture has declared an

extraordinary emergency for Karnal

bunt. For the 1996–1997 and 1997–1998

crop seasons, the provisions for this

compensation are in § 301.89–16(c). We

are proposing to make these provisions

also apply to participants in the

National Karnal Bunt Survey in the

1999–2000 crop season.

For the 1996–1997 and 1997–1998

crop seasons, paragraph (c) provides

that, if a grain storage facility

participating in the National Karnal

Bunt Survey tests positive for Karnal

bunt, the facility will be regulated, and

may be ordered decontaminated,

pursuant to either an EAN issued by an

inspector or a letter issued by an

inspector ordering decontamination of

the facility. If the Secretary has declared

an extraordinary emergency in the State

in which the grain storage facility is

located, the owner will be eligible for

compensation as follows:

• The owner of the grain storage

facility will be compensated for the loss

in value of positive wheat.

Compensation will equal the estimated

market price for the relevant class of

wheat minus the actual price received

for the wheat. The estimated market

price will be calculated by APHIS for

each class of wheat, taking into account

the prices offered by relevant terminal

markets (animal feed, milling, or export)

during the relevant time period for that

facility, with adjustments for

transportation and other handling costs.

However, compensation will not exceed

$1.80 per bushel under any

circumstances. Compensation payments

for loss in value of wheat will be issued

by the FSA. To claim compensation, the

owner of the facility must submit to the

local FSA office a Karnal Bunt

Compensation Claim form, provided by

FSA. The owner of the facility must also

submit to FSA a copy of the EAN or

letter from an inspector under which the

facility is or was quarantined;

verification as to the actual (not

estimated) weight of the wheat (such as

a copy of a facility weigh ticket or a

copy of the bill of lading for the wheat,

if the actual weight appears on those

documents, or other verification); and a

copy of the receipt for the final sale of

the wheat, showing the total bushels

sold and the total price received by the

owner of the grain storage facility.

• The owner of the facility will be

compensated on a one-time-only basis

for each grain storage facility for each

covered crop year wheat for the direct

costs of decontamination of the facility

at the same rate described under

§ 301.89–16(a) (discussed earlier)(up to

50 percent of the direct costs of

decontamination, not to exceed $20,000

per grain storage facility). Compensation

payments for decontamination of grain

storage facilities will be issued by

APHIS, and claims for compensation

must be submitted in accordance with

the provisions in § 301.89–16(a).

Under this proposed rule, the

compensation in § 301.89–16(c)

described above would also be available

to National Karnal Bunt Survey

participants in the 1999–2000 crop

season.

For the 1997–1998 crop season,

claims for compensation under

§ § 301.89–15 and 301.89–16 had to be

received by FSA or APHIS on or before

October 25, 1999. This is 120 days after

the date the June 1999 final rule was

published in the Federal Register. For

the 1999–2000 crop season, we would

likewise require that claims for

compensation be received by APHIS on

or before October 25, 2000, or the date

that is 120 days after a final rule for this

proposal is published in the Federal

Register, whichever is later. The

Administrator may extend this deadline,

upon written request in specific cases,

when unusual and unforeseen

circumstances occur that prevent or

hinder a claimant from requesting

compensation on or before that date.

Executive Order 12866 and Regulatory

Flexibility Act

This proposed rule has been reviewed

under Executive Order 12866. The rule

has been determined to be significant

for the purposes of Executive Order

12866 and, therefore, has been reviewed

by the Office of Management and

Budget.

This proposed rule would establish

compensation provisions for certain

growers, handlers, seed companies,

owners of grain storage facilities, flour

millers, and participants in the National

Karnal Bunt Survey to mitigate losses

and expenses incurred in the 1999–2000

crop season because of the Karnal bunt

quarantine and emergency actions.

In accordance with Executive Order

12866, this analysis examines the

economic effects of providing such

compensation. The wheat industry

within the regulated area is largely

composed of businesses that can be

considered ‘‘small’’ according to

guidelines established by the Small

Business Administration. Therefore, this

analysis also fulfills the requirements of

the Regulatory Flexibility Act (5 U.S.C.

601 et seq.), which requires agencies to

consider the economic impact of rule

changes on small entities.

Upon detection of Karnal bunt in

Arizona in March 1996, the U.S.

Department of Agriculture (USDA)

imposed Federal quarantine and

emergency actions to prevent the

interstate spread of the disease to other

wheat producing areas in the United

States. The unexpected discovery of

Federal Register / Vol. 66, No. 10 / Tuesday, January 16, 2001 / Proposed Rules 3509

Karnal bunt and subsequent Federal

emergency actions disrupted the

production and marketing flows of

wheat in the quarantined areas. It was

estimated that the effect of Karnal bunt

and subsequent Federal actions on the

wheat industry totaled $44 million in

the 1995–1996 crop season.

In order to alleviate some of the

economic hardships and to ensure full

and effective compliance with the

quarantine program, USDA offered

compensation to mitigate certain losses

incurred by growers, handlers, seed

companies, and other affected persons

in the areas regulated for Karnal bunt in

the 1995–1996, 1996–1997, and 1997–

1998 crop seasons. The payment of

compensation is in recognition of the

fact that, while benefits from regulation

accrue to a large portion of the wheat

industry outside the regulated areas, the

regulatory burden falls predominately

on a small segment of the affected wheat

industry within the regulated areas. A

final rule promulgating compensation

regulations for the 1997–1998 crop

season was effective and published in

the Federal Register on June 25, 1999

(64 FR 34109–34113, Docket No. 96–

016–35). The compensation proposed in

this document for the 1999–2000 crop

season is the same as the compensation

offered in the 1997–1998 crop season.

We are proposing that growers,

handlers, and seed companies would be

eligible for compensation for losses in

the 1999–2000 crop season due to wheat

grain or seed that tested positive for

Karnal bunt. Only positive-testing wheat

would be eligible for compensation

because of the lack of restrictions on the

movement of negative-testing wheat. As

in the 1997–1998 crop season, we are

proposing different levels of

compensation depending on whether

the wheat was grown in an area under

the first regulated crop season or in a

previously regulated area. An area in the

first regulated crop season is an area

that became regulated for Karnal bunt

after the 1999–2000 crop was planted. A

previously regulated area is an area that

became regulated for Karnal bunt before

the 1999–2000 crop was planted.

Currently, there are no regulated areas

in the first regulated crop season.

For growers, handlers, and seed

companies in previously regulated

areas, the proposed compensation for

positive grain or seed would be $.60 per

bushel. Growers, handlers, and seed

companies in the first regulated crop

season would be eligible for

compensation at a rate not to exceed

$1.80 per bushel. These compensation

rates would apply to both wheat grain

and seed. The difference in

compensation rates reflects the fact that

affected entities in areas under the first

regulated crop season would not have

known that their area was to become

regulated for Karnal bunt at the time

that they made planting and contracting

decisions and would not have been

prepared for the loss in value of their

wheat due to Karnal bunt. Growers and

handlers in previously regulated areas

knew they were in an area regulated for

Karnal bunt at the time that they made

planting and contracting decisions for

the 1999–2000 crop season. Given the

restrictions, growers and handlers could

have chosen to alter planting or contract

decisions to avoid experiencing

potential losses due to Karnal bunt. The

proposed compensation rates are the

same as those offered in the 1997–1998

crop season.

At this time, all areas that are

regulated for Karnal bunt are previously

regulated areas. We estimate that

approximately 37,000 acres of wheat

will be harvested in 2000 from the

regulated areas. In the 1998–1999 crop

season, no wheat grown in the regulated

areas tested positive for Karnal bunt.

However, if we assume that 1 percent of

wheat harvested from the regulated

areas will test positive for Karnal bunt

in the 1999–2000 crop season,

compensation for wheat grain and seed

grown in currently regulated areas

would total approximately $17,760 (1

percent of 37,000 acres equals 370 acres;

using an estimate of 80 bushels per acre

crop yield, 370 acres multiplied by 80

equals 29,600 bushels; 29,600 bushels

multiplied by $.60 per bushel equals

$17,760). The estimated total

compensation of $17,760 would

translate into a per grower average of

$987, assuming that 18 growers, or 10

percent of the approximately 180

growers in the regulated area, produce

wheat that tests positive for Karnal bunt.

The positive-testing wheat would have

a market value of approximately

$133,200 in the absence of Karnal bunt.

To compare, compensation for wheat

grain and seed in the 1996–1997 crop

season totaled about $149,000.

Approximately 122,000 acres of wheat

were harvested from regulated areas in

the 1996–1997 crop season, with a

Karnal bunt infection rate of 0.8 percent.

Compensation for wheat grain and seed

in the 1997–1998 crop season is

estimated to total about $1.9 million.

Approximately 181,540 acres of wheat

were harvested from regulated areas in

the 1997–1998 crop season, with an

infection rate of 3.2 percent. The

increase in the amount of compensation

paid in the 1997–1998 crop season

resulted from wetter weather

conditions, which increased the

infection rate, and the fact that positive

wheat was commingled with negative

wheat in grain storage facilities in the

certification area in Arizona before it

was known that the wheat was positive.

We cannot determine at this time

whether there will be areas eligible for

compensation under the provisions for

first regulated crop season areas in the

1999–2000 crop season. APHIS is in the

process of conducting the 1999 National

Karnal Bunt Survey in wheat producing

areas throughout the United States. Any

areas that become regulated in the

1999–2000 crop season as a result of the

1999 National Survey might be eligible

for first regulated crop season

compensation. During the 1998 National

Survey for Karnal bunt, none of the

wheat samples tested positive for Karnal

bunt.

This proposed rule would also

provide compensation under specific

criteria for the decontamination of grain

storage facilities found with positive

wheat, the treatment of millfeed, and

participants in the National Karnal Bunt

Survey whose wheat or grain storage

facility is found to be positive for Karnal

bunt. Compensation for

decontamination of grain storage

facilities will be on a one-time-only

basis for up to 50 percent of the cost of

decontamination, not to exceed $20,000.

We cannot determine at this time how

many, if any, grain storage facilities in

currently regulated areas will store

positive wheat in the 1999–2000 crop

season or how many, if any, will be

found to contain positive wheat during

the 1999 National Survey for Karnal

bunt. In the 1996–1997 crop season,

compensation paid for the

decontamination of grain storage

facilities totaled approximately

$120,000. In the 1997–1998 crop season,

the compensation paid for the

decontamination of grain storage

facilities totaled approximately $10,700.

We are also proposing compensation

for the cost of heat treating millfeed that

APHIS requires to be treated, at the rate

of $35.00 per short ton of millfeed. No

millfeed made from wheat grown in the

regulated area was required to be heat

treated in the 1998–1999 crop season.

Under current regulations, APHIS

requires heat treatment of millfeed made

from wheat that tested positive for

Karnal bunt. Since little or no positive

wheat is expected to be used for milling

in the 1999–2000 crop season,

compensation for the heat treatment of

millfeed in the 1999–2000 crop season

would be minimal.

The Regulatory Flexibility Act

requires that agencies consider the

economic effects of rules on small

businesses, organizations, and

governmental jurisdictions. Growers

3510 Federal Register / Vol. 66, No. 10 / Tuesday, January 16, 2001 / Proposed Rules

and handlers of wheat grain and seed,

and wheat seed companies, would be

those most affected by this proposed

rule. In the 1999–2000 crop season, we

estimate that there are a total of 180

wheat growers in the regulated areas: 58

in Arizona, 23 in California, 27 in New

Mexico, and 72 in Texas. Most of these

entities have total annual sales of less

than $0.5 million, the Small Business

Administration’s threshold for

classifying wheat producers as small

entities. Accordingly, the economic

effects of this proposed rule would

largely be on small entities.

This proposed rule is expected to

have a positive economic effect on all

affected entities, large and small, but

few entities are likely to be affected. As

indicated above, we estimate that only

about 18 growers in regulated areas

would produce wheat that tests positive

for Karnal bunt in the 1999–2000 crop

season. Compensation for the loss in

value of wheat that tests positive for

Karnal bunt serves to encourage

compliance with testing requirements

within the regulated area, thereby aiding

in the preservation of an important

wheat growing region in the United

States. It also serves to encourage

participation in the National Karnal

Bunt Survey.

Under these circumstances, the

Administrator of the Animal and Plant

Health Inspection Service has

determined that this action would not

have a significant economic impact on

a substantial number of small entities.

Executive Order 12372

This program/activity is listed in the

Catalog of Federal Domestic Assistance

under No. 10.025 and is subject to

Executive Order 12372, which requires

intergovernmental consultation with

State and local officials. (See 7 CFR part

3015, subpart V.)

Executive Order 12988

This proposed rule has been reviewed

under Executive Order 12988, Civil

Justice Reform. If this proposed rule is

adopted: (1) All State and local laws and

regulations that are inconsistent with

this rule will be preempted; (2) no

retroactive effect will be given to this

rule; and (3) administrative proceedings

will not be required before parties may

file suit in court challenging this rule.

Paperwork Reduction Act

In accordance with section 3507(d) of

the Paperwork Reduction Act of 1995

(44 U.S.C. 3501 et seq.), the information

collection or recordkeeping

requirements included in this proposed

rule have been submitted for approval to

the Office of Management and Budget

(OMB). Please send written comments

to the Office of Information and

Regulatory Affairs, OMB, Attention:

Desk Officer for APHIS, Washington, DC

20503. Please state that your comments

refer to Docket No. 96–016–33. Please

send a copy of your comments to: (1)

Docket No. 96–016–33, Regulatory

Analysis and Development, PPD,

APHIS, suite 3C03, 4700 River Road

Unit 118, Riverdale, MD 20737–1238,

and (2) Clearance Officer, OCIO, USDA,

room 404–W, 14th Street and

Independence Avenue, SW.,

Washington, DC 20250. A comment to

OMB is best assured of having its full

effect if OMB receives it within 30 days

of publication of this proposed rule.

This proposed rule would require that

growers, handlers, and seed companies

provide certain records and documents

to a local Farm Service Agency (FSA)

office in order to claim compensation.

Growers, handlers, and seed companies

would also have to sign a Karnal Bunt

Compensation Claim form (completed

by an employee of FSA using the

information provided by the claimant)

to attest that the information on the

form is accurate and to demonstrate

acceptance of the compensation. This

proposal would also require that owners

of grain storage facilities and flour

millers provide certain records and

documents to an APHIS inspector in

order to claim compensation. This

information collection is necessary in

order to verify a claimant’s eligibility for

compensation and to provide

documentation of compensation claims

and payments.

We are soliciting comments from the

public (as well as affected agencies)

concerning our proposed information

collection and recordkeeping

requirements. These comments will

help us:

(1) Evaluate whether the proposed

information collection is necessary for

the proper performance of our agency’s

functions, including whether the

information will have practical utility;

(2) Evaluate the accuracy of our

estimate of the burden of the proposed

information collection, including the

validity of the methodology and

assumptions used;

(3) Enhance the quality, utility, and

clarity of the information to be

collected; and

(4) Minimize the burden of the

information collection on those who are

to respond (such as through the use of

appropriate automated, electronic,

mechanical, or other technological

collection techniques or other forms of

information technology; e.g., permitting

electronic submission responses).

Estimate of burden: Public reporting

burden for this collection of information

is estimated to average .4938 hours per

response.

Respondents: Wheat growers,

handlers, seed companies, owners of

grain storage facilities, flour millers,

FSA personnel.

Estimated annual number of

respondents: 18.

Estimated annual number of

responses per respondent: 4.5.

Estimated annual number of

responses: 81.

Estimated total annual burden on

respondents: 40 hours.

Copies of this information collection

can be obtained from: Clearance Officer,

OCIO, USDA, room 404–W, 14th Street

and Independence Avenue, SW.,

Washington, DC 20250.

List of Subjects in 7 CFR Part 301

Agricultural commodities, Plant

diseases and pests, Quarantine,

Reporting and recordkeeping

requirements, Transportation.

Accordingly, we propose to amend 7

CFR part 301 as follows:

PART 301—DOMESTIC QUARANTINE

NOTICES

1. The authority citation for part 301

would continue to read as follows:

Authority: 7 U.S.C. 147a, 150bb, 150dd,

150ee, 150ff, 161, 162, and 164–167; 7 CFR

2.22, 2.80, and 371.2(c).

2. Section 301.89–15 would be

amended by revising the section

heading, the introductory text to the

section, the introductory text to

paragraph (a), paragraph (b), and the

introductory text to paragraph (c), to

read as follows:

§ 301.89–15 Compensation for growers,

handlers, and seed companies in the 1996–

1997, 1997–1998, and 1999–2000 crop

seasons.

Growers, handlers, and seed

companies are eligible to receive

compensation from the United States

Department of Agriculture (USDA) for

the 1996–1997, 1997–1998, and 1999–

2000 crop seasons to mitigate losses or

expenses incurred because of the Karnal

bunt regulations and emergency actions,

as follows:

(a) Growers, handlers, and seed

companies in areas under first regulated

crop season. Growers, handlers, and

seed companies are eligible to receive

compensation for the loss in value of

their wheat in accordance with

paragraphs (a)(1) and (a)(2) of this

section if: the wheat was grown in a

State where the Secretary has declared

an extraordinary emergency; and the

Federal Register / Vol. 66, No. 10 / Tuesday, January 16, 2001 / Proposed Rules 3511

wheat was grown in an area of that State

that became regulated for Karnal bunt

after the crop was planted, or for which

an Emergency Action Notification (PPQ

Form 523) was issued after the crop was

planted; and the wheat was grown in an

area that remained regulated or under

Emergency Action Notification at the

time the wheat was sold. Growers,

handlers, and seed companies in areas

under the first regulated crop season are

eligible for compensation for 1996–1997

crop season wheat, 1997–1998 crop

season wheat, or 1999–2000 crop season

wheat (as appropriate) and for wheat

inventories in their possession that were

unsold at the time the area became

regulated. The compensation provided

in this section is for wheat grain,

certified wheat seed, and wheat grown

with the intention of producing certified

wheat seed.

* * * * *

(b) Growers, handlers, and seed

companies in previously regulated

areas. Growers, handlers, and seed

companies are eligible to receive

compensation for the loss in value of

their wheat in accordance with

paragraphs (b)(1) and (b)(2) of this

section if: the wheat was grown in a

State where the Secretary has declared

an extraordinary emergency; and the

wheat was grown in an area of that State

that became regulated for Karnal bunt

before the crop was planted, or for

which an Emergency Action

Notification (PPQ Form 523) was issued

before the crop was planted; and the

wheat was grown in an area that

remained regulated or under Emergency

Action Notification at the time the

wheat was sold. Growers, handlers, and

seed companies in previously regulated

areas are eligible for compensation only

for 1996–1997, 1997–1998, or 1999–

2000 crop season wheat. The

compensation provided in this section

is for wheat grain, certified wheat seed,

and wheat grown with the intention of

producing certified wheat seed.

(1) Growers. Growers of wheat in a

previously regulated area who sell

wheat that was tested by APHIS and

found positive for Karnal bunt prior to

sale, or that was tested by APHIS and

found positive for Karnal bunt after sale

and the price received by the grower is

contingent on the test results, are

eligible to receive compensation at the

rate of $.60 per bushel of positive testing

wheat.

(2) Handlers and seed companies.

Handlers and seed companies who sell

wheat grown in a previously regulated

area are eligible to receive compensation

only if the wheat was not tested by

APHIS prior to purchase by the handler,

but was tested by APHIS and found

positive for Karnal bunt after purchase

by the handler or seed company, as long

as the price to be paid by the handler

or seed company is not contingent on

the test results. Compensation will be at

the rate of $.60 per bushel of positive

testing wheat.

(c) To claim compensation.

Compensation payments to growers,

handlers, and seed companies under

paragraphs (a) and (b) of this section

will be issued by the Farm Service

Agency (FSA). Claims for compensation

for the 1996–1997 crop season had to be

received by FSA on or before October 8,

1998. Claims for compensation for the

1997–1998 crop season had to be

received by FSA on or before October

25, 1999. Claims for compensation for

the 1999–2000 crop season must be

received by FSA on or before October

25, 2000, or [the date 120 days after the

final rule is published in the Federal

Register], whichever is later. The

Administrator may extend the deadline,

upon request in specific cases, when

unusual and unforeseen circumstances

occur that prevent or hinder a claimant

from requesting compensation on or

before these dates. To claim

compensation, a grower, handler, or

seed company must complete and

submit to the local FSA county office

the following documents:

* * * * *

§ 301.89–16 [Amended]

3. Section 301.89–16 would be

amended as follows:

a. In the heading, by removing the

words ‘‘1996–1997 and 1997–1998 crop

seasons’’ and adding the words ‘‘1996–

1997, 1997–1998, and 1999–2000 crop

seasons’’ in their place.

b. In the introductory text, by

removing the words ‘‘ 1996–1997 and

1997–1998 crop seasons’’ and adding

the words ‘‘1996–1997, 1997–1998, and

1999–2000 crop seasons’’ in their place.

c. In paragraphs (a), (b), (c)(1), and

(c)(2), by removing the last two

sentences in each paragraph and by

adding three sentences in their place to

read as follows: ‘‘Claims for

compensation for the 1997–1998 crop

season had to be received by APHIS on

or before October 25, 1999. Claims for

compensation for the 1999–2000 crop

season must be received by APHIS on or

before October 25, 2000, or [the date 120

days after the final rule is published in

the Federal Register], whichever is later.

The Administrator may extend these

deadlines upon written request in

specific cases, when unusual and

unforeseen circumstances occur that

prevent or hinder a claimant from

requesting compensation on or before

these dates.’’

Done in Washington, DC, this 9th day of

January 2001.

Bobby R. Acord,

Acting Administrator, Animal and Plant

Health Inspection Service.

[FR Doc. 01–1198 Filed 1–12–01; 8:45 am]

BILLING CODE 3410–34–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 2000–NM–66–AD]

RIN 2120–AA64

Airworthiness Directives; Empresa

Brasileira de Aeronautica S.A.

(EMBRAER) Model EMB–120 Series

Airplanes

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Supplemental notice of

proposed rulemaking; reopening of

comment period.

SUMMARY: This document revises an

earlier proposed airworthiness directive

(AD), applicable to all EMBRAER Model

EMB–120 series airplanes, that would

have superseded an existing AD that

currently requires repetitive visual

checks or inspections to verify that the

flight idle stop system circuit breakers

are closed, and repetitive functional

tests to determine if the backup flight

idle stop system is operative. That

notice of proposed rulemaking (NPRM)

would also have required modification

of the secondary flight idle stop system

(SFISS), which would terminate the

repetitive actions. That NPRM also

would have removed certain airplanes

from the applicability. That NPRM was

prompted by issuance of mandatory

continuing airworthiness information by

a foreign civil airworthiness authority.

This new action revises the proposed

rule by changing the compliance time

and certain procedures for modifying

the SFISS. The actions specified by this

new supplemental NPRM are intended

to prevent an inoperative backup flight

idle stop system.

DATES: Comments must be received by

February 12, 2001.

ADDRESSES: Submit comments in

triplicate to the Federal Aviation

Administration (FAA), Transport

Airplane Directorate, ANM–114,

Attention: Rules Docket No. 2000–NM–

66–AD, 1601 Lind Avenue, SW.,

Renton, Washington 98055–4056.