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

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REGISTER issue of each week.

Rules and Regulations Federal Register

30801

Vol. 66, No. 111

Friday, June 8, 2001

DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Part 1482

RIN 0551–AA60

Program to Assist U.S. Producers in

Developing Domestic Markets for

Value-Added Wheat Gluten and Wheat

Starch Products

AGENCY: Commodity Credit Corporation,

USDA.

ACTION: Interim rule.

SUMMARY: This interim rule amends 7

CFR Chapter XIV to establish a two-year

program to assist U.S. producers to pay

for certain costs incurred in developing

products and markets for value-added

wheat gluten and wheat starch products.

DATES: This rule is effective June 5,

2001. Comments should be received on

or before July 9, 2001 to be assured of

consideration.

ADDRESSES: Comments should be

mailed or delivered to Mark Petry,

Europe, Africa, and Middle East

Division, Foreign Agricultural Service,

1400 Independence Avenue SW, STOP

1024, U.S. Department of Agriculture,

Washington, DC 20250. Comments

received may be inspected between

10:00 a.m. and 4:00 p.m. at room 5514–

S, 1400 Independence Avenue SW,

Washington, DC 20250.

FOR FURTHER INFORMATION CONTACT: For

policy questions, contact Mark Petry, at

the address above, or telephone at

(202)720–1329, or e-mail at

Petrym@fas.usda.gov. For program

operations questions, contact Barry

Klein (202)720–4647 or email at

Barry.Klein@usda.gov. Persons with

disabilities who require this final rule in

an alternative means of communication

(Braille, large print, audiotape, etc.)

should contact the USDA Target Center

at (202)720–2600 (voice and TDD).

SUPPLEMENTARY INFORMATION:

Executive Order 12372

This program is not subject to the

provision of Executive Order 12372,

which requires intergovernmental

consultation with State or local officials

(See notice related to 7 CFR part 3015,

subpart V, published at 48 FR 29115,

June 24, 1983).

Executive Order 12988

This rule has been reviewed under

Executive Order 12988. The provisions

of this rule do not have preemptive

effect with respect to any state or local

laws, regulations, or policies which

conflict with such provisions or which

otherwise impede their full

implementation. This rule does not have

retroactive effect. Administrative

proceedings must be exhausted before

parties may seek judicial review.

Executive Order 12866

This rule is issued in conformance

with Executive Order 12866. It has been

determined significant for the purposes

of E.O. 12866 and, therefore, has been

reviewed by the Office of Management

and Budget (OMB).

Regulatory Flexibility Act

The Regulatory Flexibility Act

ensures that regulatory and information

requirements are tailored to the size and

nature of small businesses, small

organizations, and small governmental

jurisdictions. This rule will not have a

significant economic impact on a

substantial number of small entities.

Participation in the programs is

voluntary. The direct and indirect costs

associated with participating in the

program that are not reimbursable by

the CCC to eligible producers are likely

to be very small as a percentage of

revenue and in terms of absolute costs.

The minimal regulatory requirements

impact large and small businesses

equally, and the program should

improve small businesses’ cash flow

and liquidity.

Paperwork Reduction Act

CCC did not seek approval from the

OMB with respect to the Paperwork

Reduction Act because it has

determined that no more than three

entities are eligible to participate in the

program established by this rule.

Background

Temporary Safeguard Measure

In March 1998, the U.S. International

Trade Commission (ITC) transmitted to

the President a unanimous affirmative

determination that wheat gluten was

being imported into the United States in

such increased quantities as to be a

substantial cause of serious injury to the

domestic wheat gluten industry. The

President imposed a quota on wheat

gluten imports from June 1, 1998

through June 1, 2001 as a safeguard

relief measure pursuant to section 203

of the Trade Act of 1974. In November

2000, the U.S. wheat gluten industry

filed a request with the ITC for a twoyear extension of the import quota to

June 1, 2003. On April 2, 2001, the ITC

determined that action under section

203 continued to be necessary to

prevent or remedy serious injury and

there was evidence that the domestic

wheat gluten producers were making a

positive adjustment to import

competition. This rule assists the U.S.

wheat gluten industry in completing the

process of adjustment to import

competition by developing value-added

products.

Authority

Among other activities, the

Commodity Credit Corporation Charter

Act (15 USC 714c) authorizes the

Commodity Credit Corporation (CCC) to

use its general powers to increase

domestic consumption of agricultural

commodities by aiding in the expansion

of domestic markets or by aiding in the

development of new and additional

markets, marketing facilities, and uses

for such commodities. This rule will use

CCC funds for the purpose of increasing

domestic consumption of value-added

products made from wheat gluten and

wheat starch and developing new and

additional markets, marketing facilities

and uses for these products.

Interim Rule

Because the section 201 import quota

expires June 1, 2001, it has been

determined that this interim rule will be

effective upon filing at the Federal

Register. This action is intended to help

the U.S. wheat gluten industry to adjust

more quickly to increased import

competition that is expected to occur

immediately upon the quota’s

expiration.

30802 Federal Register / Vol. 66, No. 111 / Friday, June 8, 2001 / Rules and Regulations

The rule provides for a two-year

program to assist U.S. wheat gluten

producers in fully adjusting to import

competition by transitioning the

industry from production of basic bulk

commodities to production of valueadded commodities where the market

potential is more viable. U.S. producers

of wheat gluten, who meet the eligibility

requirements of the rule and submit the

required market development plans,

will receive an annual lump sum

payment by CCC to conduct specific

program activities aimed at facilitating

the transition to value-added wheat

gluten products for sale in the domestic

market.

The Department invites comments on

all aspects of this rule including:

eligibility criteria; contents and

requirements of the adjustment plan;

sufficiency of the program in assisting

adjustment to import competition;

relevance to the adjustment plans

previously submitted to the ITC; and

strength of requirements with respect to

ensuring proper usage of program funds.

List of Subjects in 7 CFR Part 1482

Agricultural commodities,

production, reporting and record

keeping requirements, wheat.

Interim Rule

Accordingly, the regulations at 7 CFR

Chapter XIV are amended by adding a

new part 1482 to Subchapter B as

follows:

PART 1482—VALUE-ADDED WHEAT

GLUTEN AND WHEAT STARCH

PRODUCT MARKET DEVELOPMENT

PROGRAM

Sec.

1482.1 Applicability.

1482.2 Administration.

1482.3 Definitions.

1482.4 Eligibility.

1482.5 Application.

1482.6 Costs.

1482.7 Reports.

1482.8 Payment.

1482.9 Debarment and Suspension.

1482.10 Misrepresentation and scheme or

device.

1482.11 Appeals.

1482.12 Expiration.

Authority: 15 USC 714c.

§ 1482.1 Applicability.

(a) This program is applicable until

June 5, 2003. This program sets forth the

terms and conditions under which the

Commodity Credit Corporation (CCC)

shall provide payments to U.S.

producers participating in the ValueAdded Wheat Gluten and Wheat Starch

Product Market Development Program

for the costs of conducting specific

market development activities incurred

in the United States with respect to U.S.

production of wheat gluten.

(b) Payments shall be made only for

wheat gluten and wheat starch products

produced or advanced in value in the

United States.

§ 1482.2 Administration.

(a) The Value-Added Wheat Gluten

and Wheat Starch Product Market

Development Program shall be

administered under the general

supervision of the Executive Vice

President, CCC, and shall be carried out

by the Deputy Administrator,

Commodity Operations, Farm Service

Agency (FSA).

(b) The Executive Vice-President,

CCC, or the Deputy Administrator, FSA,

or a designee, may waive or modify

deadlines and other program

requirements in cases where lateness or

failure to meet other requirements does

not adversely affect the operation of the

Value-Added Wheat Gluten and Wheat

Starch Product Market Development

Program.

§ 1482.3 Definitions.

The definitions set forth in this

section shall be applicable for purposes

of administering the Value-Added

Wheat Gluten and Wheat Starch Product

Market Development Program.

(a) Adjustment Plan means a defined

program of activities aimed at

improving the economic viability of

producers of value-added wheat gluten

or wheat starch products.

(b) Agency means the Farm Service

Agency (FSA).

(c) Agreement means the ValueAdded Wheat Gluten and Wheat Starch

Product Market Development Program

Application and Contract.

(d) Modified wheat gluten or modified

wheat starch means any processed

product derived from vital wheat gluten

or wheat starch that has been obtained

through refining or processing that adds

value to the basic product.

(e) Value-Added means changes in

vital wheat gluten or wheat starch that

result in a further processed product

having a higher market value than the

vital wheat gluten or wheat starch.

(f) Wheat gluten producer means

agricultural processors, including

producer-owned corporations, that

produce vital wheat gluten.

§ 1482.4 Eligibility.

(a) To be eligible to receive payments,

a wheat gluten producer must:

(1) Have produced in the United

States not less than 1,000,000 pounds of

vital wheat gluten from July 1, 1998

through June 30, 2000.

(2) Have been engaged in the business

of producing and marketing vital wheat

gluten or modified wheat gluten from

July 1, 1998 through June 30, 2000.

(3) Have reported specific adjustment

efforts as part of the 1998 adjustment

plan submitted by the Wheat Gluten

Industry Council to the International

Trade Commission in Investigation

Number TA–201–67.

(4) Submit a timely application and

comply with the terms and conditions

of the program and instructions issued

by CCC and FSA.

b. [Reserved]

§ 1482.5 Application.

(a) To receive payments, eligible

producers must submit an application

within the application period

announced by CCC. The application

must include the following:

(1) Name of the applicant and name

of firm, if applicable;

(2) Address of the applicant and firm;

(3) Name of agent for service of

process;

(4) Telephone and fax numbers for the

applicant and firm;

(5) Internal Revenue Service tax

identification number under which the

applicant is conducting business;

(6) Bank account number for

electronic submission of funds

(optional)

(7) Quantity of vital wheat gluten

produced from July 1, 1998 through

June 30, 2000;

(8) Submission of information in

paragraph (b) of this section.

(9) Information as to the applicant’s

eligibility under § 1482.4

(b) Eligible producers must submit a

proposal for a Value-Added Wheat

Gluten and Wheat Starch Product

Market Development Program

Agreement. The proposal must include

the following information:

(1) Nature of the adjustment plan

through production development and

market activities;

(2) Specific listing of activities and

estimated costs;

(3) Goals for completion during the

two-year program.

§ 1482.6 Costs.

(a) Costs of market development

activities set forth in an applicant’s

Agreement for which CCC funds may be

used to pay include, but are not limited

to, the following:

(1) The cost of producing and

distributing advertising material;

(2) The cost of product reformulation

and testing;

(3) The cost of developing and

expanding uses for existing value-added

products;

(4) The cost of product

demonstrations;

Federal Register / Vol. 66, No. 111 / Friday, June 8, 2001 / Rules and Regulations 30803

(5) Participation fees for retail and

trade exhibitions and shows;

(6) The cost of educational training;

(7) The cost of food service

promotions;

(8) Salaries associated with

contractors and employees engaged in

the above activities; and

(9) Capital costs relating to expanding

production of modified wheat gluten or

modified wheat starch for value-added

products.

(b) Costs that may not be paid using

CCC funds are:

(1) Fees paid for helping to prepare

the application for program benefits;

(2) Political fund raising activities;

and

(3) Costs that CCC determines are not

consistent with the intent of the

program.

§ 1482.7 Reports.

(a) A producer submitting an

application must maintain accurate

records and accounts that will

document that all eligibility

requirements under this Part and other

requirements as may be determined by

CCC are met. Such records and accounts

must be retained for three years after the

date of payment to the wheat gluten or

wheat starch producer under this

program. Such records shall be available

at all reasonable times for an audit or

inspection by authorized representatives

of CCC, U.S. Department of Agriculture,

or the Comptroller General of the United

States. Failure to keep, or make

available, such records may result in

refund to CCC of all payments received

plus interest thereon, as determined by

CCC.

(b) Producers participating in the

Value-Added Wheat Gluten and Wheat

Starch Product Market Development

Program must submit a quarterly report

listing completion of activities and costs

incurred under the program.

(c) Participating producers must also

submit a project performance report 60

days after the end of the first year of the

program and 60 days after the end of the

second year of the program. The report

should explain the activities undertaken

to adjust to import competition that

were included in the Agreement. CCC

will review the report following the first

program year. If a participating producer

has not made significant progress in

completing the stated activities in the

first program year as determined by

CCC, CCC may cancel the producer’s

eligibility for the second program year,

and CCC may require the producer to

refund with interest all or some of the

funds received from CCC. If a

participating producer has not made

significant progress in completing the

stated activities in the second program

year as determined by CCC, CCC may

require the producer to refund with

interest some or all of the funds

received from CCC in the second year of

the program.

§ 1482.8 Payment.

(a) The total amount of CCC funds

available to eligible producers for the

first year of this program is $27 million

and the total amount available for the

second (final) year of this program is

$13 million.

(b) The maximum payment rate to an

applicant will be based on an

applicant’s average annual production

of vital wheat gluten from July 1, 1998

through June 30, 2000 relative to the

total average annual U.S. production of

vital wheat gluten of all eligible

applicants.

(c) After receipt and approval of an

eligible producer’s application and

proposal, CCC will issue payment for

the first program year to the applicant.

Upon satisfactory completion of the

activities included in the producer’s

Agreement for the first program year, as

determined by CCC after receipt of the

report required in § 1482.7 (c), CCC will

issue payment for the second program

year to the producer.

§ 1482.9 Debarment and suspension.

The Government-wide debarment and

suspension (Nonprocurement)

regulations and Government

Requirements for Drug-Free Workplace

(Grants), 7 CFR part 3017, Subparts A

through E, apply to this Part.

§ 1482.10 Misrepresentation and scheme

or device.

(a) A producer shall be ineligible to

receive payments under this program if

CCC determines the producer:

(1) Adopted any scheme or device

which tends to defeat the purpose of the

program in this Part;

(2) Made any fraudulent

representation; or

(3) Misrepresented any fact affecting a

program determination.

(b) Any funds disbursed pursuant to

this Part to a producer engaged in a

misrepresentation, scheme, or device, or

to any other person as a result of the

producer’s actions, shall be refunded

with interest together with such other

sums as may become due, plus damages

as may be determined by CCC.

(c) Interest charged under this part

shall accrue at the rate of interest which

the United States Treasury charges CCC

for funds. Such interest shall accrue

from the date CCC made such funds

available to the date of repayment or the

date interest increases as determined in

accordance with applicable regulations.

(d) CCC may waive the accrual of

interest and/or damages if CCC

determines that the cause of the

erroneous determination was not due to

any action of the producer.

(e) Any producer or person engaged in

an act prohibited by this Part and any

producer or person receiving payment

under this Part, in part because of such

act, shall be jointly and individually

liable for any refund due under this Part

and for related charges.

(f) The remedies provided in this Part

shall be in addition to other civil,

criminal, or administrative remedies

which may apply.

(g) Other limitations may apply.

§ 1482.11 Appeals.

(a) Any producer who is subject to an

adverse determination made under this

Part shall have a right to appeal the

determination by filing a written request

with the Deputy Administrator of the

Farm Service Agency at the following

address: Deputy Administrator,

Commodity Operations, Farm Service

Agency, United States Department of

Agriculture, STOP 0550, 1400

Independence Avenue, SW.,

Washington, DC 20250–0550.

(b) Any producer who believes that it

has been adversely affected by a

determination under this Part must seek

review with the Deputy Administrator

within thirty days of such

determination, unless provided with

notice by CCC which provides a

different time for appealing.

(c) Any producer who believes that it

has been adversely affected by a

determination by the Agency must seek

review with the Deputy Administrator

before any other review may be

requested by a court of competent

jurisdiction.

§ 1482.12 Expiration.

This program will expire June 5, 2003.

The program shall not be extended.

Signed at Washington, D.C. on June 4,

2001.

J.B. Penn,

President, Commodity Credit Corporation.

[FR Doc. 01–14431 Filed 6–5–01; 10:16 am]

BILLING CODE 3410–10–P

SMALL BUSINESS ADMINISTRATION

13 CFR Part 115

RIN 3245–AE74

Surety Bond Guarantee Program

AGENCY: Small Business Administration

(SBA).

ACTION: Direct final rule.