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

67096 

Vol. 70, No. 213 

Friday, November 4, 2005 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 984 

[Docket No. FV05–984–2 PR] 

Walnuts Grown in California; Increased 

Assessment Rate 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Proposed rule. 

SUMMARY: This rule would increase the 

assessment rate established for the 

Walnut Marketing Board (Board) for the 

2005–06 and subsequent fiscal periods 

from $0.0094 to $0.0096 per 

kernelweight pound of assessable 

walnuts. The Board locally administers 

the marketing order which regulates the 

handling of walnuts grown in 

California. Assessments upon walnut 

handlers are used by the Board to fund 

reasonable and necessary expenses of 

the program. The marketing year began 

August 1 and ends July 31. The 

assessment rate would remain in effect 

indefinitely unless modified, 

suspended, or terminated. 

DATES: Comments must be received by 

November 14, 2005. 

ADDRESSES: Interested persons are 

invited to submit written comments 

concerning this rule. Comments must be 

sent to the Docket Clerk, Marketing 

Order Administration Branch, Fruit and 

Vegetable Programs, AMS, USDA, 1400 

Independence Avenue SW., STOP 0237, 

Washington, DC 20250–0237; Fax: (202) 

720–8938, E-mail: 

moab.docketclerk@usda.gov. Comments 

should reference the docket number and 

the date and page number of this issue 

of the Federal Register and will be 

available for public inspection in the 

Office of the Docket Clerk during regular 

business hours, or can be viewed at: 

http://www.ams.usda.gov/fv/moab.html. 

FOR FURTHER INFORMATION CONTACT: 

Shereen Marino, Marketing Specialist, 

California Marketing Field Office, Fruit 

and Vegetable Programs, AMS, USDA; 

Telephone: (559) 487–5901, Fax: (559) 

487–5906; or George Kelhart, Technical 

Advisor, Marketing Order 

Administration Branch, Fruit and 

Vegetable Programs, AMS, USDA, 1400 

Independence Avenue SW., STOP 0237, 

Washington, DC 20250–0237; 

Telephone: (202) 720–2491, Fax: (202) 

720–8938. Small businesses may request 

information on complying with this 

regulation by contacting Jay Guerber, 

Marketing Order Administration 

Branch, Fruit and Vegetable Programs, 

AMS, USDA, 1400 Independence 

Avenue SW., STOP 0237, Washington, 

DC 20250–0237; Telephone: (202) 720– 

2491, Fax: (202) 720–8938, or E-mail: 

Jay.Guerber@usda.gov. 

SUPPLEMENTARY INFORMATION: This rule 

is issued under Marketing Agreement 

and Order No. 984, both as amended (7 

CFR part 984), regulating the handling 

of walnuts grown in California, 

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, California walnut handlers are 

subject to assessments. Funds to 

administer the order are derived from 

such assessments. It is intended that the 

assessment rate as proposed herein 

would be applicable to all assessable 

walnuts beginning on August 1, 2005, 

and continue until amended, 

suspended, or terminated. This rule will 

not preempt any State or local laws, 

regulations, or policies, unless they 

present an irreconcilable conflict with 

this rule. 

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 would increase the 

assessment rate established for the 

Board for the 2005–06 and subsequent 

fiscal periods from $0.0094 to $0.0096 

per kernelweight pound of assessable 

walnuts. 

The California walnut marketing 

order provides authority for the Board, 

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 Board are producers and handlers 

of California walnuts. They are familiar 

with the Board’s needs and 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 at a public meeting. 

Thus, all directly affected persons have 

an opportunity to participate and 

provide input. 

For the 2004–05 and subsequent fiscal 

periods, the Board recommended, and 

USDA approved, an assessment rate of 

$0.0094 per kernelweight of assessable 

walnuts that would continue in effect 

from year to year unless modified, 

suspended, or terminated by USDA 

upon recommendation and information 

submitted by the Board or other 

information available to USDA. 

The Board met on September 9, 2005, 

and unanimously recommended 2005– 

06 expenditures of $2,937,600 and an 

assessment rate of $0.0096 per 

kernelweight pound of assessable 

walnuts. In comparison, last year’s 

budgeted expenditures were $2,749,500. 

The assessment rate of $0.0096 per 

kernelweight pound of assessable 

walnuts is $0.0002 per pound higher 

than the rate currently in effect. The 

increased assessment rate is necessary 

because this year’s crop is estimated by 

the California Agricultural Statistics 

Service (CASS) to be 340,000 tons 

(306,000,000 kernelweight pounds 

merchantable), and the budget is about 

6.4 percent more than last year’s budget. 

The crop is smaller than expected due 

to sunburn caused by warmer than 

Federal Register / Vol. 70, No. 213 / Friday, November 4, 2005 / Proposed Rules 67097 

normal temperatures during the growing 

season. The higher assessment rate 

should generate sufficient income to 

cover anticipated 2005–06 expenses. 

The following table compares major 

budget expenditures recommended by 

the Board for the 2004–05 and 2005–06 

marketing years: 

Budget expense categories 2004–05 2005–06 

Administrative Staff/Field Salaries & Benefits ......................................................................................................... $332,000 $360,000 

Travel/Board Expenses ........................................................................................................................................... 69,000 80,000 

Office Costs/Annual Audit ........................................................................................................................................ 124,000 132,500 

Program Expenses Including Research Controlled Purchases .............................................................................. 5,000 5,000 

Crop Acreage Survey .............................................................................................................................................. ........................ 85,000 

Crop Estimate .......................................................................................................................................................... 94,000 95,000 

Production Research Director ................................................................................................................................. 76,500 75,000 

Production Research ............................................................................................................................................... 548,500 500,000 

Domestic Market Development ............................................................................................................................... 1,393,500 1,550,000 

Reserve for Contingency ......................................................................................................................................... 107,000 55,100 

The assessment rate recommended by 

the Board was derived by dividing 

anticipated expenses by expected 

shipments of California walnuts 

certified as merchantable. Merchantable 

shipments for the year are estimated at 

306,000,000 kernelweight pounds 

which should provide $2,937,600 in 

assessment income and allow the Board 

to cover its expenses. Unexpended 

funds may be used temporarily to defray 

expenses of the subsequent marketing 

year, but must be made available to the 

handlers from whom collected within 5 

months after the end of the year, 

according to § 984.69. 

The proposed assessment rate would 

continue in effect indefinitely unless 

modified, suspended, or terminated by 

USDA upon recommendation and 

information submitted by the Board or 

other available information. 

Although this assessment rate would 

be in effect for an indefinite period, the 

Board would continue to meet prior to 

or during each marketing year to 

recommend a budget of expenses and 

consider recommendations for 

modification of the assessment rate. The 

dates and times of Board meetings are 

available from the Board or USDA. 

Board meetings are open to the public 

and interested persons may express 

their views at these meetings. USDA 

would evaluate Board recommendations 

and other available information to 

determine whether modification of the 

assessment rate is needed. Further 

rulemaking would be undertaken as 

necessary. The Board’s 2005–06 budget 

and those for subsequent fiscal periods 

would be reviewed and, as appropriate, 

approved by USDA. 

Initial Regulatory Flexibility Analysis 

Pursuant to requirements set forth in 

the Regulatory Flexibility Act (RFA), the 

Agricultural Marketing Service (AMS) 

has considered the economic impact of 

this rule on small entities. Accordingly, 

AMS has prepared this initial regulatory 

flexibility analysis. 

The purpose of the RFA is to fit 

regulatory actions to the scale of 

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. Thus, both statutes have small 

entity orientation and compatibility. 

There are approximately 50 handlers 

of California walnuts subject to 

regulation under the marketing order 

and approximately 5,500 growers in the 

production area. Small agricultural 

service firms are defined by the Small 

Business Administration (13 CFR 

121.201) as those whose annual receipts 

are less than $6,000,000, and small 

agricultural producers are defined as 

those whose annual receipts are less 

than $750,000. 

Current industry information shows 

that 15 of the 50 handlers (30 percent) 

shipped over $6,000,000 of 

merchantable walnuts and could be 

considered large handlers by the Small 

Business Administration. Thirty-five of 

the 50 walnut handlers (70 percent) 

shipped under $6,000,000 of 

merchantable walnuts and could be 

considered small handlers. 

The number of large walnut growers 

(annual walnut revenue greater than 

$750,000) can be estimated as follows. 

According to the National Agricultural 

Statistics Service (NASS), the average 

yield per acre for 2002–04 is 1.457 tons. 

A grower with 420 acres would produce 

approximately 612 tons. The average of 

grower prices for 2002–04 (published by 

NASS) is $1,227 per ton. At that average 

price, the 612 tons produced on 420 

acres would yield approximately 

$750,000 in annual revenue. The 2002 

Agricultural Census indicated 56 

percent of walnut farms were 500 acres 

or larger, which is close to the 420 acres 

required to produce $750,000 in 

revenue. Thus, it can be concluded that 

the number of large walnut farms in 

2005 is still likely to be under one 

percent. Based on the foregoing, it can 

be concluded that the majority of 

California walnut handlers and 

producers may be classified as small 

entities. 

This rule would increase the 

assessment rate established for the 

Board and collected from handlers for 

the 2005–06 and subsequent marketing 

years from $0.0094 per kernelweight 

pound of assessable walnuts to $0.0096 

per kernelweight pound of assessable 

walnuts. The Board unanimously 

recommended 2005–06 expenditures of 

$2,937,600 and an assessment rate of 

$0.0096 per kernelweight pound of 

assessable walnuts. The proposed 

assessment rate of $0.0096 is $0.0002 

higher than the rate currently in effect. 

The quantity of assessable walnuts for 

the 2005–06 marketing year is estimated 

at 340,000 tons. Thus, the $0.0096 rate 

should provide $2,937,600 in 

assessment income and be adequate to 

meet this year’s expenses. The increased 

assessment rate is primarily due to 

increased budget expenditures and 

based on an estimated crop of 340,000 

tons for the year (306,000,000 

kernelweight pounds estimated 

merchantable). 

The following table compares major 

budget expenditures recommended by 

the Board for the 2004–05 and 2005–06 

fiscal years: 

67098 Federal Register / Vol. 70, No. 213 / Friday, November 4, 2005 / Proposed Rules 

Budget expense categories 2004–05 2005–06 

Administrative Staff/Field Salaries & Benefits ......................................................................................................... $332,000 $360,000 

Travel/Board Expenses ........................................................................................................................................... 69,000 80,000 

Office Costs/Annual Audit ........................................................................................................................................ 124,000 132,500 

Program Expenses Including Research Controlled Purchases .............................................................................. 5,000 5,000 

Crop Acreage Survey .............................................................................................................................................. ........................ 85,000 

Crop Estimate .......................................................................................................................................................... 94,000 95,000 

Production Research Director ................................................................................................................................. 76,500 75,000 

Production Research ............................................................................................................................................... 548,500 500,000 

Domestic Market Development ............................................................................................................................... 1,393,500 1,550,000 

Reserve for Contingency ......................................................................................................................................... 107,000 55,100 

The Board reviewed and unanimously 

recommended 2005–06 expenditures of 

$2,937,600, which included an increase 

in audit expenses. Prior to arriving at 

this budget, the Board considered 

alternative expenditure levels, but 

ultimately decided that the 

recommended levels were reasonable to 

properly administer the order. The 

assessment rate recommended by the 

Board was derived by dividing 

anticipated expenses by expected 

shipments of California walnuts 

certified as merchantable. Merchantable 

shipments for the year are estimated at 

306,000,000 kernelweight pounds 

which should provide $2,937,600 in 

assessment income and allow the Board 

to cover its expenses. Unexpended 

funds may be used temporarily to defray 

expenses of the subsequent marketing 

year, but must be made available to the 

handlers from whom collected within 5 

months after the end of the year, 

according to § 984.69. 

According to NASS, the season 

average grower prices for years 2003 and 

2004 were $1,160 and $1,350 per ton 

respectively. Dividing these average 

grower prices by 2,000 pounds per ton 

provides an inshell price per pound 

range of between $.58 and $.68. 

Adjusting by a few cents above and 

below those prices ($0.55 to $0.70 per 

inshell pound) provides a reasonable 

price range within which the 2005–06 

season average price is likely to fall. 

Dividing these inshell prices per pound 

by the 0.45 conversion factor designated 

in the order yields a 2005–06 price 

range estimate of $1.22 and $1.56 per 

kernelweight pound of assessable 

walnuts. 

To calculate the percentage of grower 

revenue represented by the assessment 

rate, the assessment rate of $0.0096 (per 

kernelweight pound) is divided into the 

low and high estimates of the price 

range. The estimated assessment 

revenue for the 2005–06 marketing year 

as a percentage of total grower revenue 

would likely range between .8 and .6 

percent. 

This action would increase 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 would be offset by 

the benefits derived by the operation of 

the marketing order. In addition, the 

Board’s meeting was widely publicized 

throughout the California walnut 

industry and all interested persons were 

invited to attend the meeting and 

participate in Board deliberations on all 

issues. Like all Board meetings, the 

September 9, 2005, meeting was a 

public meeting and all entities, both 

large and small, were able to express 

views on this issue. Finally, interested 

persons are invited to submit 

information on the regulatory and 

informational impacts of this action on 

small businesses. 

This proposed rule would impose no 

additional reporting or recordkeeping 

requirements on either small or large 

California walnut handlers. As with all 

Federal marketing order programs, 

reports and forms are periodically 

reviewed to reduce information 

requirements and duplication by 

industry and public sector agencies. 

USDA has not identified any relevant 

Federal rules that duplicate, overlap, or 

conflict with this rule. 

A small business guide on complying 

with fruit, vegetable, and specialty crop 

marketing agreements and orders may 

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

fv/moab.html. Any questions about the 

compliance guide should be sent to Jay 

Guerber at the previously mentioned 

address in the FOR FURTHER INFORMATION

CONTACT section. 

A 10-day comment period is provided 

to allow interested persons to respond 

to this proposed rule. Ten days is 

deemed appropriate because: (1) The 

2005–06 marketing year began on 

August 1, 2005, and the marketing order 

requires that the rate of assessment for 

each year apply to all assessable 

walnuts handled during the year; (2) the 

Board needs to have sufficient funds to 

pay its expenses which are incurred on 

a continuous basis and; (3) handlers are 

aware of this action which was 

unanimously recommended by the 

Board at a public meeting and is similar 

to other assessment rate actions issued 

in past years. 

List of Subjects in 7 CFR Part 984 

Walnuts, Marketing agreements, Nuts, 

Reporting and recordkeeping 

requirements. 

For the reasons set forth in the 

preamble, 7 CFR part 984 is proposed to 

be amended as follows: 

PART 984—WALNUTS GROWN IN 

CALIFORNIA 

1. The authority citation for 7 CFR 

part 984 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

2. Section 984.347 is revised to read 

as follows: 

§ 984.347 Assessment rate. 

On and after August 1, 2005, an 

assessment rate of $0.0096 per 

kernelweight pound is established for 

California merchantable walnuts. 

Dated: October 31, 2005. 

Lloyd C. Day, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. 05–22047 Filed 11–3–05; 8:45 am] 

BILLING CODE 3410–02–P 

NUCLEAR REGULATORY 

COMMISSION 

10 CFR Part 63 

RIN 3150–AH68 

Implementation of a Dose Standard 

After 10,000 Years; Extension of 

Comment Period 

AGENCY: Nuclear Regulatory 

Commission. 

ACTION: Proposed rule: Extension of 

comment period. 

SUMMARY: On September 8, 2005 (70 FR 

53313), the U.S. Nuclear Regulatory 

Commission (NRC) published for public 

comment a proposed rule that would