This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

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

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REGISTER issue of each week.

Rules and Regulations Federal Register

61047 

Vol. 72, No. 208 

Monday, October 29, 2007 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 1210 

[Doc. No. AMS–FV–07–0038; FV–07–701] 

Watermelon Research and Promotion 

Plan; Assessment Increase 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This rule amends the 

Watermelon Research and Promotion 

Plan (Plan) to increase the assessment 

rate on producers, handlers, and 

importers of watermelons from four 

cents to six cents per hundredweight. 

Domestic producers and handlers will 

pay three cents per hundredweight each 

and importers will pay six cents per 

hundredweight. The increase is 

provided for under the Plan which is 

authorized by the Watermelon Research 

and Promotion Act (Act). The National 

Watermelon Promotion Board (Board), 

which administers the Plan, 

recommended this action to sustain and 

expand their promotional, research, and 

communications programs. 

DATES: Effective Date: January 1, 2008. 

FOR FURTHER INFORMATION CONTACT: 

Daniel Manzoni, Marketing Specialist, 

Research and Promotion Branch, Fruit 

and Vegetable Programs, AMS, USDA, 

1400 Independence Avenue, SW., Room 

0634, Stop 0244, Washington, DC 

20250–0244; telephone: (202) 720–9915; 

or fax: (202) 205–2800; or e-mail: 

Daniel.Manzoni@usda.gov. 

SUPPLEMENTARY INFORMATION: This rule 

is issued under the Watermelon 

Research and Promotion Plan [7 CFR 

part 1210]. This rule will increase the 

assessment rate by one cent per 

hundredweight for producers and 

handlers each, and by two cents per 

hundredweight for importers. The Plan 

is authorized under the Watermelon 

Research and Promotion Act [7 U.S.C. 

4901–4916]. 

Executive Order 12866 

The Office of Management and Budget 

(OMB) has waived the review process 

required by Executive Order 12866 for 

this action. 

Executive Order 12988 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. The rule is not intended to have 

retroactive effect and will not affect or 

preempt any other State or Federal law 

authorizing promotion or research 

relating to an agricultural commodity. 

The Act allows producers, handlers, 

and importers subject to the Plan to file 

a written petition with the Secretary of 

Agriculture (Secretary) if they believe 

that the Plan, any provision of the Plan, 

or any obligation imposed in connection 

with the Plan, is not in accordance with 

the law. In any petition, the person may 

request a modification of the Plan or an 

exemption from the Plan. The petitioner 

will have the opportunity for a hearing 

on the petition. Afterwards, an 

Administrative Law Judge (ALJ) will 

issue a decision. If the petitioner 

disagrees with the ALJ’s ruling, the 

petitioner has 30 days to appeal to the 

Judicial Officer, who will issue a ruling 

on behalf of the Secretary. If the 

petitioner disagrees with the Secretary’s 

ruling, the petitioner may file, within 20 

days, an appeal in the U.S. District 

Court for the district where the 

petitioner resides or conducts business. 

Regulatory Flexibility Act and 

Paperwork Reduction Act 

In accordance with the Regulatory 

Flexibility Act (RFA) [5 U.S.C. 601 et 

seq.], the Agricultural Marketing Service 

(AMS) has considered the economic 

impact of this action on the small 

businesses and has prepared this final 

regulatory analysis. The purpose of the 

RFA is to fit regulatory action to scale 

on businesses subject to such action so 

that small businesses will not be 

disproportionately burdened. 

The Small Business Administration 

defines, in 13 CFR part 121, small 

agricultural producers as those having 

annual receipts of no more than 

$750,000 and small agricultural service 

firms (handlers and importers) as those 

having annual receipts of no more than 

$6.5 million. Under these definitions, 

the majority of the producers, handlers, 

and importers that would be affected by 

this rule would be considered small 

entities. Producers of less than 10 acres 

of watermelons are exempt from this 

program. Importers of less than 150,000 

pounds of watermelons per year are also 

exempt. 

According to the National 

Watermelon Promotion Board (Board), 

there are approximately 1,301 

producers, 442 first handlers, and 346 

importers who are subject to the 

provisions of the Plan. 

Under the current Plan, domestic 

producers of 10 acres or more and 

handlers of watermelon each pay a 

mandatory assessment rate of two cents 

per hundredweight, and importers of 

more than 150,000 pounds of 

watermelon per year pay an assessment 

of four cents per hundredweight. 

Assessments under the program are 

used by the Board to finance promotion, 

research, and educational programs 

designed to increase consumer demand 

for watermelons in the United States 

and international markets. The 

assessments at the current four cents per 

hundredweight generate about $1.5 

million in annual revenues. The two 

cents per hundredweight assessment 

rate each for domestic watermelon 

producer and handler was established 

in April 1990. The four cents per 

hundredweight assessment rate on 

imported watermelons became effective 

when the Plan was amended in 

February 1995 to authorize the 

collection of assessments on importers. 

The Plan is administered by the Board 

under U.S. Department of Agriculture 

supervision. 

According to the Board, additional 

revenue is required in order to sustain 

and expand the promotional, research, 

and communications programs. The 

Board approved the proposed 

assessment rate increase at its February 

24, 2007, meeting. This increase is 

consistent with section 1647(f) of the 

Act that permits changes in the 

assessment rate through notice and 

comment procedures. Section 

1210.341(b) of the Plan states that 

assessment rates shall be fixed by the 

Secretary in accordance with section 

1647(f) of the Act. Section 1210.515(a) 

of the Plan states that an assessment of 

two cents per hundredweight shall be 

levied on all watermelons produced and 

on all watermelons first handled for 


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consumption as human food. It also 

states that an assessment of four cents 

per hundredweight shall be levied on 

watermelons imported into the U.S. for 

consumption as human food. Further, 

not more than one assessment on a 

producer, handler, or importer may be 

collected on any lot of watermelons. 

The Board conducted an inflation 

analysis based on the current 

assessment rate of four cents per 

hundredweight starting from 1995. The 

analysis results show that, adjusted for 

inflation, the 1995 four cents per 

hundredweight total assessment is 

equivalent to three cents per 

hundredweight for the current program 

year. On an inflation adjusted basis, 

using 1995 as the base year, the 

watermelon industry’s program to 

support research and promotion 

activities has lost 25 percent of its 

effective buying power. This erosion in 

buying power has had a significant 

impact on the industry’s ability to 

compete for market share. The cost of 

media services, research programs, 

promotional opportunities, as well as 

general administrative costs and fees 

paid to USDA have continually risen. 

Assessments collected have not kept 

pace with these increasing costs. 

Movement and sales of watermelon 

continue to grow; however, that growth 

has not outpaced the negative effects of 

inflation. 

With the increased assessment, the 

financial commitment of the U.S. 

watermelon industry for generic 

research and promotion activity will 

increase 50 percent in current dollars. 

For example, if we apply the assessment 

increase to the 2005–2006 crop year, in 

which collections totaled $1,583,983 on 

3,959,957,500 pounds of watermelons, 

the increase in assessments collected 

would have been approximately 

$791,991. The Board plans to use the 

additional funds to expand promotional 

activities, and to increase the Board’s 

reserve fund over a two-year period to 

provide for adequate cash flow. By 

changing the assessment rate to six 

cents per hundredweight, the Board 

stated that it will maintain its research 

and promotional activities, expand its 

programs, and sustain marketing 

activities in the future with rising cost 

expenditures. 

The Board estimates the two cents per 

hundredweight increase in assessments 

would increase the cost to watermelon 

producers from $16.00 per truckload of 

watermelons to $24.00 per truckload of 

watermelons. At Freight on Board (FOB) 

prices of about $0.14 per pound of 

watermelons, this amounts to a total 

assessment of 0.00429 percent of the 

value of a truck load of watermelons. 

This is based on a 40,000 pound net 

weight of watermelons per truck load. 

The Board considered three 

alternatives prior to the 

recommendation to increase the 

assessment rate. First, the Board 

engaged in several cost saving measures 

as an alternative to increasing the 

assessment rate which included moving 

to less expensive offices, changes in the 

staff health insurance program, change 

in independent auditors, and the 

elimination of one professional staff 

position. The results of the savings were 

over $120,000 which equals 

approximately 10 percent of the Board’s 

revenue for the 2005–2006 crop year. 

The second alternative considered by 

the Board was a prior attempt to 

increase additional revenue by 

expanding the handler base for 

watermelons. A referendum was 

conducted by AMS between December 

2001 and January 2002. The proposed 

amendment to the Plan requested the 

watermelon industry to expand the 

program to cover all handlers of 

watermelons which would have 

included wholesalers, persons who 

arrange the sale or transfer of 

watermelon (such as brokers) and fresh 

cut processors. The amendment was not 

approved in referendum. Therefore, the 

Plan continues to cover domestic 

producers of 10 acres or more, first 

handlers, and importers of 150,000 

pounds or more of watermelon 

annually. 

The final alternative considered by 

the Board was the current assessment 

rate proposal. The Board discussed 

increasing the assessment rate by one 

cent per hundredweight for each 

producer of 10 acres or more, handler, 

and importer of 150,000 pounds or more 

of watermelon annually. The one cent 

increase was rejected by the Board on 

the basis that an increase of this size 

would only return the program to the 

1995 adjusted funding level. In order to 

sustain and expand the promotional, 

research, and communication programs, 

the Board decided on the increased 

assessment rate of two cents per 

hundredweight for a total assessment 

rate of six cents per hundredweight 

(three cents per hundredweight paid by 

producers, three cents per 

hundredweight paid by handlers, and 

six cents per hundredweight paid by 

importers of watermelons). 

This rule does not impose additional 

recordkeeping requirements on first 

handlers, producers, or importers of 

watermelons. Producers of fewer than 

10 acres of watermelon and importers of 

less than 150,000 pounds of watermelon 

annually are exempt. 

There are no Federal rules that 

duplicate, overlap, or conflict with this 

rule. 

In accordance with the Office of 

Management and Budget (OMB) 

regulation 5 CFR part 1320] which 

implements the Paperwork Reduction 

Act of 1995 [44 U.S.C. Chapter 35], the 

information collection and 

recordkeeping requirements that are 

imposed by the Plan have been 

approved previously under OMB 

control number 0581–0093. This rule 

does not result in a change to the 

information collection and 

recordkeeping requirements previously 

approved. 

Background 

Under the Plan, the Board administers 

a nationally coordinated program of 

research, development, advertising, and 

promotion designed to strengthen the 

position of watermelons in the 

marketplace, and to establish, maintain, 

and expand markets for watermelons. 

This program is financed by 

assessments on producers growing 10 

acres or more of watermelons, handlers 

of watermelons, and importers of 

150,000 or more pounds of watermelons 

per year. The Plan specifies that 

handlers are responsible for collecting 

and submitting both the producer and 

handler assessments to the Board, 

reporting their handling of watermelons, 

and maintaining records necessary to 

verify their reporting(s). Importers are 

responsible for payment of assessments 

to the Board on watermelons imported 

into the United States through the U.S. 

Customs Service and Border Protection. 

This rule increases the assessment 

rate by one cent per hundredweight for 

producers and handlers each, and by 

two cents per hundredweight for 

importers. Currently, the assessment 

rate is two cents per hundredweight 

levied on watermelons produced and 

two cents per hundredweight on 

watermelons handled within the 50 

States of the United States and four 

cents per hundredweight on imports of 

watermelon. In order to sustain and 

expand the promotion, research, and 

communications programs at present 

levels, the Board contends that 

additional revenue is required. The two 

cents per hundredweight assessment 

rate increase is estimated to generate 

$750,000–$800,000 in new revenue, 

depending upon production levels. For 

the 2005–2006 crop year, total 

production was 3,959,957,500 pounds 

of watermelons resulting in $1,583,983 

in assessment collections. Based on 

assessments collected for that crop year, 

about 75 percent of this production total 

was from domestic assessments, with 


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the remainder from imports. The Board 

states that the assessment rate increase 

will enable it to expand media services, 

educational programs, research 

programs, and establish, maintain, and 

expand domestic and foreign markets 

for watermelons. Some of the additional 

revenue, the Board states, would be 

used to increase the reserve fund over 

a two-year period and to provide for 

adequate cash flow. Also, it is estimated 

that the Board will receive $2.3 million 

in total assessments with a six cents per 

hundredweight assessment rate on 

watermelons. 

In addition, the Board, whose 

members represent all watermelon 

producing states as well as importers, 

voted for the assessment rate increase at 

its February 24, 2007, meeting which 

was open to the public like all other 

meetings. The vote to recommend the 

assessment increase was 22 in favor and 

1 against of the Board members present 

at the meeting. In the case of the one 

dissenting vote, the producer member 

stated that he opposed the two cents per 

hundredweight increase; however, he 

would support an increase of one cent 

per hundredweight. The assessment rate 

of one cent per hundredweight was 

rejected by the Board on the basis that 

such an increase would only return the 

program to its 1995 inflation adjusted 

funding level. According to the Board, 

the one cent per hundredweight would 

not allow the program to expand its 

activities. 

This rule amends the rules and 

regulations issued under the Plan. This 

rule increases the assessment rate by 

two cents per hundredweight. The rate 

will increase from four cents to six cents 

per hundredweight. Producers of 10 

acres or more and handlers of 

watermelons will each pay three cents 

per hundredweight and importers of 

150,000 pounds or more of watermelons 

annually will pay six cents per 

hundredweight. This increase is 

consistent with section 1647(f) of the 

Act that permits changes in the 

assessment rate through notice and 

comment procedures. Section 

1210.341(b) of the Plan states that 

assessment rates shall be fixed by the 

Secretary in accordance with section 

1647(f) of the Act. Further, not more 

than one assessment on a producer, 

handler, or importer may be collected 

on any lot of watermelons. 

A proposed rule concerning this 

action was published in the Federal 

Register on May 8, 2007 (72 FR 26005). 

Copies of the rule were made available 

through the Internet by USDA and the 

Office of the Federal Register. In 

addition, AMS published a press release 

announcing the comment period. That 

rule provided a 60-day comment period 

which ended July 9, 2007. Forty 

comments were received by the 

deadline. 

Summary of Comments 

In response to the proposed rule, 

USDA received 40 comments regarding 

the proposed amendment to the Plan to 

increase the assessment rate on 

producers, handlers, and importers of 

watermelons from four cents to six cents 

per hundredweight. Domestic producers 

and handlers will pay three cents per 

hundredweight each and importers will 

pay six cents per hundredweight. Of the 

40 comments, 27 supported the 

proposed amendment and 13 comments 

did not support the proposed 

amendment. There were 5 duplicate 

comments. Two of the supporting 

comments were letters responding to a 

commenter who opposed the proposed 

amendment. 

In general, commenters supporting 

the amendment stated that the 

watermelon industry benefits from the 

current program. Four commenters 

stated that the additional revenue from 

the proposed amendment will improve 

the program by enhancing the industry’s 

ability to continue promoting 

watermelons, as it can no longer assume 

watermelons are going to receive shelf 

space or be a preferred item in 

advertising. According to the 

commenters, the Board is fighting for 

promotional opportunities and has done 

an outstanding job of promoting the 

health benefits, convenience, and the 

great taste of watermelons to customers. 

According to these commenters, 

consumers are more health-conscious 

than ever and the public needs to be 

more informed of the nutritional and 

health value of watermelons. Two 

commenters further stated that the 

industry must educate the consumer 

about watermelons availability all year 

round. 

Six commenters stated that customers 

rely exclusively on the Board for 

product information and marketing 

support in areas where there are no 

branded watermelon programs. These 

commenters also stated that increasing 

awareness of watermelons in the market 

place will lead to an increase in 

consumption. The commenters further 

stated that an increase in revenue will 

help the Board continue its work of 

promoting watermelons. 

Eleven commenters supported the 

assessment increase in order to sustain 

the Board’s program of research and 

consumer information. The commenters 

stated that the increased funding will 

help the Board put more emphasis on 

research as they have done for 

Lycopene, assisting in solving the 

mature vine decline problem plaguing 

the industry, target consumer research, 

emphasize media relations, and fund 

successful promotions like the Weight 

Watchers Pick of the Season promotion, 

and Teachers Kits promotions. Other 

commenters stated that recent research 

conducted on Citrulline and Lycopene 

should be further explored to formally 

validate the specific health attributes of 

Citrulline and Lycopene. However, 

further studies will require more money, 

and that is a sufficient reason for 

supporting the assessment rate increase. 

Two commenters stated that programs 

like the mango research and promotion 

program have large budgets to support 

research at the consumer and trade 

level. Three commenters stated that the 

Board’s budget has not increased 

significantly since 1995 and that, taking 

into consideration inflation, the Board is 

working with 25 percent less funds. 

According to the commenters, 

worthwhile programs and opportunities 

are being eliminated because of evertightening budgets. 

Two commenters stated that 

consumer studies in 2002, 2004, and 

2006 show increased consumption of 

watermelons by consumers. The 

commenters believed that the results 

could be better if the Board had more 

funds to position watermelons as a yearround fruit, increase awareness of 

watermelon health benefits, and provide 

recipes and appealing ways to 

incorporate watermelons into consumer 

diets. 

Thirteen commenters stated that the 

Board does not need a food safety crisis 

similar to what happened in other 

commodities in order to realize the 

importance of having sufficient monies 

available to respond with a coordinated 

emergency response to maintain the 

public’s confidence in the safety of 

watermelons. The commenters 

recommended that the Board continue 

developing training in the areas of crisis 

prevention and crisis management plan 

in order to be prepared if a crisis in the 

industry occurs. The commenters 

believed in having the necessary 

resources to deal with food safety issues 

that may arise in the future. Currently, 

the Board has a crisis management plan 

in place which is revised every year. 

One commenter stated that before 

requesting the increase, the Board 

considered other alternatives such as 

reducing operating cost by $120,000 and 

include wholesalers and brokers in the 

program. This last measure failed in 

referendum. 

One commenter stated that the 

growers, shippers, and importers on the 

Board work hard to use the assessments 


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61050 Federal Register / Vol. 72, No. 208 / Monday, October 29, 2007 / Rules and Regulations 

in the most prudent and cost effective 

manner. 

Another commenter stated that when 

research and promotion programs 

increase their assessment rates, there is 

a measurable increase to the return on 

investment to the industry. The 

commenter cited an evaluation 

conducted in December 2002, by Dr. 

Ronald W. Ward from the Food and 

Resource Economics Department of the 

University of Florida titled the Generic 

Promotions of Watermelons: Measuring 

the Impact on Watermelon Demand, 

which addressed the question of 

whether generic promotion of 

watermelons has a measurable impact 

on the domestic demand for 

watermelons. The evaluation’s 

conclusions were based on a subset of 

U.S. cities with data recorded over the 

months from 1992–1999. The evaluation 

concluded that generic promotion of 

watermelons does have a measurable 

impact on domestic demand. 

One commenter stated that the 

assessment increase will result in an 

overall assessment of $24 per truckload 

of watermelon. The commenter believed 

that this modest increase will have 

virtually no effect on the bottom line of 

companies in the industry but an 

enormous impact on the industry by 

increasing the budget for watermelon 

promotions. 

Another commenter argued that the 

Board’s reserve has stayed at $100,000 

for a number of years, and compared to 

most other programs, the Board’s 

reserve does not have enough funds to 

cover unforeseen expenses during a 

crisis. For that reason, the commenter 

stated, the Board needs to increase its 

reserve, and increasing the assessment 

rate is the only way to accomplish that 

objective. 

Three commenters submitted 

comments supporting the increase but 

did not provide any further detail. In 

addition, two commenters submitted 

letters in response to commenters 

opposed to the assessment increase. The 

issues raised and the two commenters 

views are generally reflected in the 

discussion of opposition comments that 

follows. 

One commenter opposed the proposal 

on the basis that the assessment on 

growers will be passed on to consumers. 

The same commenter believed in the 

need to lower watermelon prices. The 

assessment increase will be imposed on 

producers, handlers and importers who 

pay assessments under the Plan. 

Business decisions on how to manage 

any increase in assessments are made by 

producers, handlers, and importers 

based on their respective business 

practices. 

One commenter disagreed with the 

Board’s promotion, research and 

development programs. The commenter 

did not feel that promotional dollars 

should be spent on research. However, 

the Board’s role is to initiate and 

implement promotion, research and 

communication programs under the 

Plan. 

Four commenters opposed the 

increase and expressed the opinion that 

the program should be terminated. The 

commenters also requested information 

on how to initiate a referendum to 

terminate the Board. Section 1210.363 

(b) of the Plan outlines the procedures 

to request a referendum in order to 

determine if the industry favors 

continuance of the program. The 

Secretary will hold a referendum if 

requested by the Board or 10 percent of 

those that are covered by the program. 

Interested parties may collect the 

necessary signatures and submit a 

request to the Secretary. After 

verification of the information, the 

Secretary may call for a referendum. 

Another commenter opposed the 

assessment increase and stated that the 

watermelon business has not increased, 

and therefore no assessment increase 

was needed. However, as previously 

discussed, assessments are needed to 

sustain the Board’s programs in 

promotion, research and 

communication in order to increase the 

demand for watermelons. 

Two commenters stated that they 

have not seen any increase in 

watermelon consumption because of the 

Board’s efforts. The commenters stated 

that the increase in watermelon 

consumption fails to take into 

consideration the increase in population 

and demographics. The study 

conducted by Dr. Ronald Ward of the 

University of Florida addressed these 

issues. The evaluation conducted in 

December 2002, the Generic Promotions 

of Watermelons: Measuring the Impact 

on Watermelon Demand, addressed 

demographic effects such as age, 

income, and other demographic effects 

across cities. For example, the study 

showed that the watermelon demand 

increased as the median age increased 

and that income had a positive impact 

on the demand for watermelons. The 

evaluation concluded that 

demographics are far much more 

important in impacting the demand. 

Another commenter questioned why 

consumers need ‘‘research’’ on 

watermelons and that watermelons are 

fine just as they are. Research is one of 

the core objectives of the program and 

it has shown to be beneficial to the 

industry. For example, nutrition 

research has assisted the Board’s efforts 

in educating consumers about the health 

benefits of consuming watermelons. In 

addition, the Board conducts 

production research, consumer research, 

and other types of research that benefit 

the industry. 

The same commenter stated 

opposition to any increase in 

bureaucratic costs. The Board is 

industry-funded and as such taxpayers’

dollars are not used to cover the 

expenses of this program. 

Another commenter stated that the 

program does not benefit the industry. 

This program benefits watermelon 

producers, handlers, and importers by 

strengthening the competitive position 

of watermelon in the marketplace. It 

also provides the industry with valuable 

market research, and consumers and 

commercial users of watermelons with 

information on buying, storing, and 

preparing watermelons. 

Two commenters stated that the 

producer absorbs all program costs. This 

assertion is not correct. While 

assessments impose some additional 

costs, the costs are minimal and uniform 

on all producers, handlers, and 

importers. 

Three commenters were opposed to 

the assessment increase but did not 

provide more details. One commenter 

also stated that the funds collected now 

are sufficient and there is no need for an 

increase. The Board provided 

information showing that not increasing 

the assessment rate has kept them with 

a 25 percent less purchasing power 

when conducting promotions. 

One commenter stated that the 

proposed increased is exorbitant 

considering that the program benefits 

are little to none. The commenter also 

stated that the Board spends a million 

dollars a year or over 60 percent of its 

assessment revenue on salaries, staff 

support, benefits, office expense, board 

meetings, administration and travel. The 

Board’s financial statement for the year 

ending March 31, 2006, identifies that 

the total cost for general and 

administrative expenses as $470,001 or 

29 percent of the total Board budget. It 

is common financial practice to allocate 

a portion of salaries under program 

expenses. 

The commenter also stated that the 

Board failed to notify the watermelon 

industry of the proposed rate change 

before the Board members voted to 

approve the assessment increase. This 

assertion is not correct. The Board 

members reported and presented to 

their respective districts the Board’s 

intent to increase the assessment rate. In 

addition, Board staff attended industry 

meetings to address the proposed 

assessment increase. Furthermore, the 


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Board discussed the rate of increase at 

a number of state and regional 

association meetings as well as at the 

national meeting of the NWA in 

February of 2007. It was at this meeting 

that the Board conducted a special 

session with industry leaders to discuss 

their plans to recommend an assessment 

rate increase once they received 

industry input. In addition, the Board’s 

industry newsletter the ‘‘Watermelon 

Update’’ included articles announcing 

the proposed assessment increase in 

their March/April and June 2007 

editions. Furthermore, the Board sent a 

letter to all industry members on May 8, 

2007, providing information regarding 

the proposal and where to send 

comments. 

The commenter further stated that 

despite a large communications budget, 

the Board does not provide industry 

access to the Board’s meeting agendas or 

minutes on its Web site, and it does not 

routinely mail out notices to its 

membership. While the Board’s Web 

site does not contain the Board’s 

meeting agenda or minutes, meeting 

agendas and minutes, however, are 

available from the Board upon request. 

The Board utilizes its newsletter the 

‘‘Watermelon Update’’ to publicize 

industry meetings. The Board meets 

frequently during the year to discuss 

future programs and those meetings are 

open to the industry and the public. The 

Board notifies the watermelon industry 

on nomination meetings by publishing 

the nominations on the Board’s Web 

site, contacting the national, state, and 

regional watermelon associations, and 

Board’s staff attends industry meetings 

throughout the year in order to 

disseminate information. In addition, 

the Department publishes nomination 

meetings information and other 

important notices and rulemaking on its 

Web site. 

The commenter further stated that the 

Board’s 50 percent assessment increase 

adds excessive production costs without 

any guarantee the grower or handler 

will get the increase back through sales. 

Two commenters stated when the 

market is below normal, the difference 

between continue farming or not may be 

the assessment fee. The commenters 

also stated that there are no safeguards 

when the producer falls below the break 

even point. Another commenter stated 

that farmers are not realizing profits. 

Under the Plan, the Board administers 

a coordinated program of research, 

development, advertising, and 

promotion designed to strengthen the 

position of watermelons in the 

marketplace, and to establish, maintain, 

and expand markets for watermelons. 

The program does not guarantee price 

increases on watermelons. However, as 

previously discussed in this rule, 

previous evaluations have shown the 

positive effects of promotional programs 

for watermelons. 

The commenter also stated that the 

fact that the Board’s budget is one of the 

smallest of all national check-off 

programs should not be used to increase 

the assessment rate. The Board provided 

information from other research and 

promotion programs for comparison 

purposes only. 

The commenter further stated that the 

Board’s five-year evaluation study by 

Dr. Ronald Ward presented an opinion 

when it stated that, when programs such 

as the watermelon program increase 

assessments, there is a measurable 

increase to the return on investment to 

the industry. An evaluation conducted 

in December 2002, the Generic 

Promotions of Watermelons: Measuring 

the Impact on Watermelon Demand, 

addressed the question of whether 

generic promotion of watermelons has a 

measurable impact on the domestic 

demand for watermelons. The 

evaluation concluded that generic 

promotion of watermelons does have a 

measurable impact on domestic 

demand. For the study, demand models 

were estimated using cross sections of 

cities and time series of wholesale 

arrivals to measure demand at the 

wholesale market level. Wholesale 

prices were shown to increase about two 

cents per pound (11 percent) due to 

generic promotion activities. 

The commenter also addressed the 

Board’s example of how the assessment 

increase would affect the approximate 

cost per truckload. The example stated 

that the cost to watermelon producers 

would range from $16.00 per truckload 

of watermelon to $24.00 per truckload 

of watermelons. The commenter stated 

that the increase could cost their 

company more than $5,000 per year in 

additional assessments and this would 

bring their yearly assessments to around 

$15,000. The commenter believed that 

their company would not receive any 

benefits from the increase. The Board 

provided an example of the estimated 

cost to producers. The Board, however, 

recognizes the costs will vary among 

producers and handlers for watermelons 

based on the size of their watermelon 

business. Further, the benefits of the 

program previously have been 

discussed. 

The commenter further stated that the 

Board will use the additional funds for 

communication programs and marketing 

activities, but did not cite an increase in 

any administrative costs and it failed to 

reveal the increase in staff support and 

benefits. The commenter also stated that 

the Board cannot sustain current staff 

levels and have funds left for 

promotions. With the additional 

revenue, the Board stated that it would 

maintain its research and promotional 

activities, expand its programs, and 

sustain marketing activities in the 

future. The Board does not anticipate to 

hire additional staff or expand its Board 

meeting with the increased revenue. In 

fact, as previously discussed, the Board 

engaged in several cost savings 

measures primarily concerning staff 

expenses, and the results of the savings 

was over $120,000 for the 2005–2006 

crop year. The increase will cover the 

cost of running the program in today’s 

financial environment. 

The Department has considered all of 

the comments and is not making any 

changes to the proposed rule based on 

them. 

After consideration of all relevant 

material presented, including 

comments, the Board’s 

recommendation, and other 

information, it is hereby found that this 

rule, as published in the Federal 

Register (72 FR 26005) on May 8, 2007, 

is consistent with and will tend to 

effectuate the declared policy of the Act. 

List of Subjects in 7 CFR Part 1210 

Administrative practice and 

procedure, Advertising, Consumer 

information, Marketing agreements, 

Reporting and recordkeeping 

requirements, Watermelon promotion. 

■ For the reasons set forth in the 

preamble, part 1210, Chapter XI of Title 

7 is amended as follows: 

PART 1210—WATERMELON 

RESEARCH AND PROMOTION PLAN 

■ 1. The authority citation for 7 CFR 

part 1210 continues to read as follows: 

Authority: 7 U.S.C. 4901–4916. 

■ 2. In § 1210.515 paragraph (a) is 

revised to read as follows: 

§ 1210.515 Levy of assessments. 

(a) An assessment of three cents per 

hundredweight shall be levied on all 

watermelons produced for ultimate 

consumption as human food, and an 

assessment of three cents per 

hundredweight shall be levied on all 

watermelons first handled for ultimate 

consumption as human food. An 

assessment of six cents per 

hundredweight shall be levied on all 

watermelons imported into the United 

States for ultimate consumption as 

human food at the time of entry in the 

United States. 

* * * * * 


rfrederick on PROD1PC67 with RULES
61052 Federal Register / Vol. 72, No. 208 / Monday, October 29, 2007 / Rules and Regulations 

Dated: October 24, 2007. 

Kenneth C. Clayton, 

Acting Administrator, Agricultural Marketing 

Service. 

[FR Doc. 07–5348 Filed 10–24–07; 11:39 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 71 

[Docket No. FAA–2007–29086; Airspace 

Docket No. 07–ASO–22] 

Amendment of Class E Airspace; 

Aguadilla, PR 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule. 

SUMMARY: This document amends the 

Class E2 and E5 airspace at Aguadilla, 

PR. This action corrects the 

geographical position coordinates for 

the Rafael Hernandez Airport. 

DATES: Effective Date: 0901 UTC, 

December 20, 2007. The Director of the 

Federal Register approves this 

incorporation by reference action under 

title 1, Code of Federal Regulations, part 

51, subject to the annual revision of 

FAA Order 7400.9 and publication of 

conforming amendments. 

FOR FURTHER INFORMATION CONTACT: 

Mark D. Ward, Manager, System 

Support Group, Eastern Service Center, 

Federal Aviation Administration, P.O. 

Box 20636, Atlanta, Georgia 30320; 

telephone (404) 305–5581. 

SUPPLEMENTARY INFORMATION: 

History 

On March 16, 2007, the geographical 

position coordinates for Rafael 

Hernandez Airport, Aguadilla, PR, 

changed from lat. 18°29′38′′N, long. 

67°07′59′′W to lat. 18°29′42′′N, long. 

67°07′46′′W. This action corrects the 

geographical position coordinates of the 

airport. 

This rule becomes effective on the 

date specified in the EFFECTIVE DATE

section. Since this action will have no 

impact on aircraft operating in the 

vicinity of Rafael Hernandez Airport, 

Aguadilla, PR, notice and public 

procedure under 5 U.S.C. 553(b) are not 

necessary. Class E airspace areas 

designated as surface areas and Class E 

airspace areas designated as airspace 

areas extending upward from 700 feet or 

more above the surface of the earth are 

published in Paragraphs 6002 and 6005, 

respectively, of FAA Order 7400.9P, 

Airspace Designations and Reporting 

Points, dated September 1, 2006, and 

effective September 15, 2006, which is 

incorporated by reference in 14 CFR 

71.1. The Class E airspace designations 

listed in this document will be 

published subsequently in the Order. 

The Rule 

This amendment to Title 14 Code of 

Federal Regulations (14 CFR) part 71 

amends Class E2 and E5 airspace at 

Rafael Hernandez Airport, Aguadilla, 

PR. 

The FAA has determined that this 

regulation only involves an established 

body of technical regulations for which 

frequent and routine amendments are 

necessary to keep them operationally 

current. It, therefore, (1) is not a 

‘‘significant regulatory action’’ under 

Executive Order 12866; (2) is not a 

‘‘significant rule’’ under DOT 

Regulatory Policies and Procedures (44 

FR 11034; February 26, 1979); and (3) 

does not warrant preparation of a 

regulatory evaluation as the anticipated 

impact is so minimal. Since this is a 

routine matter that will only affect air 

traffic procedures and air navigation, it 

is certified that this rule will not have 

a significant economic impact on a 

substantial number of small entities 

under criteria of the Regulatory 

Flexibility Act. 

List of Subjects in 14 CFR Part 71 

Airspace, Incorporation by reference, 

Navigation (air). 

Adoption of the Amendment 

■ In consideration of the foregoing, the 

Federal Aviation Administration 

amends 14 CFR part 71 as follows: 

PART 71—[AMENDED] 

■ 1. The authority citation for 14 CFR 

part 71 continues to read as follows: 

Authority: 49 U.S.C. 106(g); 40103, 40113, 

40120; EO 10854, 24 FR 9565, 3 CFR, 1959–

1963 Comp., p. 389; 14 CFR 11.69. 

§ 71.1 [Amended] 

■ 2. The incorporation by reference in 

14 CFR 71.1 of Federal Aviation 

Administration Order 7400.9R, Airspace 

Designations and Reporting Points, 

dated August 15, 2007, and effective 

September 15, 2007, is amended as 

follows: 

Paragraph 6000. Class E Airspace. 

* * * * * 

ASO PR E2 Aguadilla, PR [Revised] 

Rafael Hernandez Airport, PR 

(Lat. 18°29′42′′ N, long. 67°07′46′′ W) 

Borinquen VORTAC 

(Lat. 18°29′53′′ N, long. 67°06′30′′ W) 

Within a 4.5-mile radius of Rafael 

Hernandez Airport and within 2.4 miles each 

side of the Borinquen VORTAC 257° radial, 

extending from the 4.5-mile radius to 7 miles 

west of the VORTAC. This Class E airspace 

area is effective during the specific days and 

times established in advance by a Notice to 

Airmen. The effective days and times will 

thereafter be continuously published in the 

Airport/Facility Directory. 

* * * * * 

ASO PR E5 Aguadilla, PR [Revised] 

Rafael Hernandez Airport, PR 

(Lat. 18°29′42′′ N, long. 67°07′46′′ W) 

Eugenio Maria De Hostos Airport 

(Lat. 18°15′21′′ N, long. 67°08′55′′ W) 

That airspace extending upward from 700 

feet above the surface within an 11-mile 

radius of Rafael Hernandez Airport and 

within a 10-mile radius of Eugenio Maria De 

Hostos Airport. 

* * * * * 

Issued in College Park, Georgia, on October 

5, 2007. 

Barry A. Knight, 

Acting Manager, System Support Group, 

Eastern Service Center. 

[FR Doc. 07–5264 Filed 10–26–07; 8:45 am] 

BILLING CODE 4910–13–M 

DEPARTMENT OF ENERGY 

Federal Energy Regulatory 

Commission 

18 CFR Parts 33, 35, 154, 157, 300, 375, 

376 

[Docket No. RM07–22–000; Order No. 701] 

Delegations to Office of Electric 

Reliability 

Issued October 19, 2007. 

AGENCY: Federal Energy Regulatory 

Commission, Department of Energy. 

ACTION: Final Rule. 

SUMMARY: This Final Rule revises the 

Commission’s regulations to delegate 

authority to the newly established 

Office of Electric Reliability to allow 

that office to process routine, noncontroversial matters efficiently. The 

rule also makes conforming changes to 

account for changes in office names. 

DATES: Effective Date: This rule will 

become effective October 29, 2007. 

FOR FURTHER INFORMATION CONTACT: 

Wilbur Miller, Office of the General 

Counsel, 888 First Street, NE., 

Washington, DC 20426, (202) 502–8953. 

wilbur.miller@ferc.gov. 

SUPPLEMENTARY INFORMATION: 

Before Commissioners: Joseph T. Kelliher, 

Chairman; Suedeen G. Kelly, Marc Spitzer, 

Philip D. Moeller, and Jon Wellinghoff. 

I. Discussion 

1. On September 20, 2007, the 

Commission announced the creation of 


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