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

6179 

Vol. 72, No. 27 

Friday, February 9, 2007 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Parts 1000, 1001, 1005, 1006, 

1007, 1030, 1032, 1033, 1124, 1126, and 

1131 

[Docket No. AO–14–A77, et al.; DA–07–02] 

Milk in the Northeast and Other 

Marketing Areas; Notice of Hearing on 

Proposed Amendments to Tentative 

Marketing Agreements and Orders 

7 CFR 

Part Marketing area AO numbers 

1001 .... Northeast .......... AO–14–A77. 

1005 .... Appalachian ..... AO–388–A21. 

1006 .... Florida .............. AO–356–A42. 

1007 .... Southeast ......... AO–366–A50. 

1030 .... Upper Midwest AO–361–A43. 

1032 .... Central .............. AO–313–A52. 

1033 .... Mideast ............. AO–166–A76. 

1124 .... Pacific Northwest.AO–368–A38. 

1126 .... Southwest ........ AO–231–A71. 

1131 .... Arizona ............. AO–271–A43. 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Proposed rule; Notice of public 

hearing on proposed rulemaking. 

SUMMARY: A national public hearing is 

being held to consider and take 

evidence on proposals seeking to amend 

the Class III and Class IV product price 

formulas applicable to all Federal milk 

marketing orders. 

DATES: The hearing will convene at 9 

a.m., Monday, February 26, 2007. 

ADDRESSES: The hearing will be held at 

the Holiday Inn Select—Strongsville, 

15471 Royalton Road, Strongsville, Ohio 

44136, phone (440) 238–8800. 

FOR FURTHER INFORMATION CONTACT: Jack 

Rower, Marketing Specialist, Order 

Formulation and Enforcement, USDA/ 

AMS/Dairy Programs, Stop 0231—Room 

2971, 1400 Independence Avenue, SW., 

Washington, DC 20250–0231, (202) 720– 

2357, e-mail address: 

jack.rower@usda.gov. 

Persons requiring a sign language 

interpreter or other special 

accommodations should contact Paul 

Huber, Assistant Market Administrator, 

at (330) 225–4758; e-mail: 

phuber@fmmaclev.com before the 

hearing begins. 

SUPPLEMENTARY INFORMATION: This 

administrative action is governed by the 

provisions of Sections 556 and 557 of 

Title 5 of the United States Code and, 

therefore, is excluded from the 

requirements of Executive Order 12866. 

Notice is hereby given of a public 

hearing to be held at the Holiday Inn 

Select, Strongsville, Ohio, beginning at 

9 a.m. on Monday, February 26, 2007, 

with respect to proposed amendments 

to the tentative marketing agreements 

and to the orders regulating the 

handling of milk in the Northeast and 

other marketing areas. 

The hearing is called pursuant to the 

provisions of the Agricultural Marketing 

Agreement Act of 1937, as amended (7 

U.S.C. 601–674), and the applicable 

rules of practice and procedure 

governing the formulation of marketing 

agreements and marketing orders (7 CFR 

Part 900). 

The purpose of the hearing is to 

receive evidence with respect to the 

economic and marketing conditions 

which relate to the proposed 

amendments, hereinafter set forth, and 

any appropriate modifications thereof, 

to the tentative marketing agreements 

and to the orders. 

Initial Regulatory Flexibility Analysis 

Actions under the Federal milk order 

program are subject to the Regulatory 

Flexibility Act (5 U.S.C. 601 et seq.). 

This Act seeks to ensure that, within the 

statutory authority of a program, the 

regulatory and information collection 

requirements are tailored to the size and 

nature of small businesses. For the 

purpose of the Act, a dairy farm is a 

‘‘small business’’ if it has an annual 

gross revenue of less than $750,000, and 

a dairy products manufacturer is a 

‘‘small business’’ if it has fewer than 500 

employees (13 CFR 121.201). Most 

parties subject to a milk order are 

considered as a small business. 

For the purposes of determining 

which dairy farms are ‘‘small 

businesses,’’ the $750,000 per year 

criterion was used to establish a 

production guideline of 500,000 pounds 

per month. Although this guideline does 

not factor in additional monies that may 

be received by dairy producers, it 

should be an inclusive standard for 

most ‘‘small’’ dairy farmers. For 

purposes of determining a handler’s 

size, if the plant is part of a larger 

company operating multiple plants that 

collectively exceed the 500-employee 

limit, the plant will be considered a 

large business even if the local plant has 

fewer than 500 employees. 

USDA has identified that during 2005 

approximately 51,060 of the 54,652 

dairy producers whose milk is pooled 

on Federal orders are small businesses. 

Small businesses represent about 93 

percent of the dairy farmers who 

participate in the Federal milk order 

program. 

On the processing side, during June 

2005 there were approximately 350 fully 

regulated plants (of which 149 or 43 

percent were small businesses) and 110 

partially regulated plants (of which 50 

or 45 percent were small businesses.) In 

addition, there were 48 producerhandlers, of which 29 were considered 

small businesses for the purposes of this 

initial regulatory flexibility analysis, 

who submitted reports under the 

Federal milk order program during this 

period. 

The fluid use of milk represented 

about 45.0 percent of total Federal milk 

marketing order producer deliveries 

during January 2006. Almost 237 

million Americans, approximately 80 

percent of the total U.S. population 

reside within the geographical 

boundaries of the 10 Federal milk 

marketing areas. 

In order to accomplish the goal of 

imposing no additional regulatory 

burdens on the industry, a review of the 

current reporting requirements was 

completed pursuant to the Paperwork 

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

et seq.). In light of that review, it was 

determined that these proposed 

amendments would have little or no 

impact on reporting, record keeping, or 

other compliance requirements because 

these requirements would remain 

identical to those currently in effect 

under the Federal order program. No 

new or additional reporting would be 

necessary. 

This notice does not require 

additional information collection that 

requires clearance by the OMB beyond 

the currently approved information 

collection. Information currently 


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6180 Federal Register / Vol. 72, No. 27 / Friday, February 9, 2007 / Proposed Rules 

collected through the use of OMBapproved forms and the primary sources 

of data used to complete the forms are 

routinely used in business transactions. 

The forms require only a minimal 

amount of information that can be 

provided without data processing 

equipment or trained statistical staff. 

Thus, the information collection burden 

is relatively small. Requiring the same 

reports from all handlers does not 

disadvantage any handler that is smaller 

than the industry average. 

No other burdens are expected to fall 

upon the dairy industry as a result of 

overlapping Federal rules. This 

proposed rulemaking does not 

duplicate, overlap, or conflict with any 

existing Federal rules. 

To ensure that small businesses are 

not unduly or disproportionately 

burdened based on these proposed 

amendments consideration was given to 

mitigating any negative impacts. It is 

expected that small producers would 

not experience any particular 

disadvantage compared to larger 

producers as a result of the proposed 

amendments. Similarly, it is expected 

that small handlers would not 

experience any particular disadvantage 

compared to larger handlers as a result 

of the proposed amendments. Possible 

changes to the Class III and Class IV 

price formulas should not have any 

special impacts on small handler 

entities. All handlers manufacturing 

dairy products from milk classified as 

Class III or Class IV would remain 

subject to the same minimum prices 

regardless of the size of their operations. 

Minimum prices should not raise 

barriers regarding the ability of small 

handlers to compete in the marketplace. 

Interested parties are invited to 

present evidence on the probable 

regulatory and information collection 

impact of the hearing proposals on 

small businesses. Also, such parties may 

suggest modifications of the proposal for 

tailoring its applicability to small 

businesses. 

Preliminary Economic Analysis and 

Detailed Analysis Information 

A preliminary economic analysis as 

well as additional detailed analysis, 

data and information used in 

developing the preliminary economic 

analysis are presented at the AMS Dairy 

Programs Web site, http:// 

www.ams.usda.gov/dairy. 

Executive Order 12988, Civil Justice 

Reform 

The amendments to the rules 

proposed herein have been reviewed 

under Executive Order 12988, Civil 

Justice Reform. They are not intended to 

have a retroactive effect. If adopted, the 

proposed amendments would not 

preempt any state or local laws, 

regulations, or policies, unless they 

present an irreconcilable conflict with 

this rule. 

The Agricultural Marketing 

Agreement Act provides that 

administrative proceedings must be 

exhausted before parties may file suit in 

court. Under Section 8c(15)(A) of the 

Act (7 U.S.C. 608c (15)(A)), any handler 

subject to an order may request 

modification or exemption from such 

order by filing with the Department of 

Agriculture (Department) 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 the law. A handler is 

afforded the opportunity for a hearing 

on the petition. After a hearing, the 

Department 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 its principal place of business, has 

jurisdiction in equity to review the 

Department’s ruling on the petition, 

provided a bill in equity is filed not 

later than 20 days after the date of the 

entry of the ruling. 

Interested parties who wish to 

introduce exhibits should provide the 

Presiding Officer at the hearing with (6) 

copies of such exhibits for the Official 

Record. Also, it would be helpful if 

additional copies are available for the 

use of other participants at the hearing. 

List of Subjects in 7 CFR parts 1000, 

1001, 1005, 1006, 1007, 1030, 1032, 

1033, 1124, 1126, and 1131 

Milk marketing orders. 

The authority citation for 7 CFR Parts 

1000, 1001, 1005, 1006, 1007, 1030, 

1032, 1033, 1124, 1126, and 1131 read 

as follows: 

Authority: 7 U.S.C. 601–674, and 7253. 

The proposed amendments, as set 

forth below, have not received the 

approval of the Department. 

Proposed by Agri-Mark Dairy 

Cooperative 

Proposal 1 

This proposal seeks to amend the 

manufacturing allowances for Class III 

and Class IV product formulas, as 

enumerated in § 1000.50 that may 

include the most current plant cost 

survey information available. 

Specifically, this proposal seeks to 

amend § 1000.50 milk price formulas by 

revising the existing manufacturing 

allowances for butter, nonfat dry milk, 

cheese, and whey powder based upon 

evidence obtained from the hearing 

record. Amendments to these 

manufacturing allowances would 

directly affect the milk component 

values used in Federal order milk price 

formulas for all classes of milk. 

Proposal 2 

This proposal seeks to amend the 

Class III and Class IV product formulas 

to annually update the manufacturing 

allowances using an annual 

manufacturing cost survey of cheese, 

whey powder, butter and nonfat dry 

milk plants (located outside of 

California.) The proposed amendments 

would grant authority to the Market 

Administrator to administer the survey, 

select the sample plants, and collect, 

audit and assemble cost information. 

The proposal seeks to use the annual 

manufacturing cost survey data to 

annually update manufacturing 

allowances at a level that is the higher 

of the following: 

(1) Manufacturing costs would be set 

at a level that would allow minimum 

percentages of milk volume used and 

plants in the entire Class III and Class 

IV manufacturing plant population 

outside of California to cover their costs; 

or 

(2) Manufacturing allowances would 

be set at a level that would allow 

minimum percentages of the milk used 

by Class III and Class IV manufacturing 

plants and the number of plants in any 

specific Federal order pooling at least 2 

billion pounds of milk annually to cover 

their costs. 

Proposed by Dairy Producers of New 

Mexico 

Proposal No. 3 

This proposal seeks to amend the 

manufacturing allowances contained in 

the Class III and Class IV product price 

formulas. Specifically, this proposal 

seeks to change the butter make 

allowance butter from 11.5 cents to 

11.08 cents, change the nonfat dry milk 

make allowance from 14 cents to 14.10 

cents, change the cheese make 

allowance from 16.5 cents to 16.38 

cents, and change the dry whey make 

allowance from 15.9 cents to 14.98 

cents. 

1. Amend § 1000.50 by: 

(a) revising paragraph (l); 

(b) revising paragraph (m); 

(c) revising paragraph (n)(2) and 

(n)(3)(i); 

(d) revising paragraph (o); and 

(e) revising paragraph (q)(3). 

The revisions read as follows: 

§ 1000.50 Class prices, component prices, 

and advanced pricing factors. 

* * * * * 


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(l) Butterfat price. The butterfat price 

per pound, rounded to the nearest onehundredth cent, shall be the U.S. 

average NASS AA butter survey price 

reported by the Department for the 

month less 11.08 cents, with the result 

multiplied by 1.20. 

(m) Nonfat solids price. The nonfat 

solids price per pound, rounded to the 

nearest one-hundredth cent, shall be the 

U.S. average NASS nonfat dry milk 

survey price reported by the Department 

for the month less 14.10 cents and 

multiplying the result by 0.99. 

(n) * * * 

(2) Subtract 16.38 cents from the price 

computed pursuant to paragraph (n)(1) 

of this section and multiply the result 

by 1.383; 

(3) * * * 

(i) Subtract 16.38 cents from the price 

computed pursuant to paragraph (n)(1) 

of this section and multiply the result 

by 1.572; and 

* * * * * 

(o) Other solids price. The other solids 

price per pound, rounded to the nearest 

one-hundredth cent, shall be the U.S. 

average NASS dry whey survey price 

reported by the Department for the 

month minus 14.98, with the result 

multiplied by 1.03. 

* * * * * 

(q) * * * 

(3) An advanced butterfat price per 

pound, rounded to the nearest onehundredth cent, shall be calculated by 

computing a weighted average of the 2 

most recent U.S. average NASS AA 

butter survey prices announced before 

the 24th day of the month, subtracting 

11.08 cents from this average, and 

multiplying the result by 1.20. 

Proposed by Dairy Producers of New 

Mexico 

Proposal No. 4 

This proposal seeks to amend the 

Class III and Class IV product price 

formulas by establishing a Class III 

butterfat price that would be based on 

the Chicago Mercantile Exchange (CME) 

price for 40-lb. block cheese. 

1. Amend § 1000.50 by revising 

paragraph (l) and removing paragraph 

(n)(3) to read as follows: 

§ 1000.50 Class prices, component prices, 

and advanced pricing factors. 

* * * * * 

(l) Butterfat Price. The butterfat price 

shall be as follows: 

(1) The Class IV butterfat price per 

pound, rounded to the nearest onehundredth cent, shall be the CME AA 

Butter price reported by the 

Department’s Dairy Market News for the 

month less 11.5 cents, with the result 

multiplied by 1.20. 

(2) The Class III butterfat price per 

pound, rounded to the nearest onehundredth cent shall be the AA Butter 

price reported by the Department’s 

Dairy Market News for 40-lb. block 

cheese for the month, less 16.5 cents 

and multiply the result by 1.572. 

* * * * * 

Proposed by Dairy Farmers of America 

Proposal No. 5 

This proposal seeks to amend the 

butterfat shrink adjustment contained in 

the Class III and Class IV product price 

formulas by adjusting the yield factor 

contained in the butterfat price 

computation from 1.20 to 1.215. 

1. Amend § 1000.50 by revising 

paragraphs (l) and (q)(3), to read as 

follows: 

§ 1000.50 Class prices, component prices, 

and advanced pricing factors. 

* * * * * 

(l) Butterfat price. The butterfat price 

per pound, rounded to the nearest onehundredth cent, shall be the U.S. 

average NASS AA butter survey price 

reported by the Department for the 

month less 11.5 cents, with the result 

multiplied by 1.215. 

* * * * * 

(q) * * * 

(3) An advanced butterfat price per 

pound, rounded to the nearest onehundredth cent, shall be calculated by 

computing a weighted average of the 2 

most recent U.S. average NASS AA 

butter survey prices announced before 

the 24th day of the month, subtracting 

11.5 cents from this average, and 

multiplying the result by 1.215. 

Proposed by Dairy Producers of New 

Mexico 

Proposal No. 6 

This proposal seeks to amend the 

Class III and Class IV product price 

formulas by changing the butterfat 

shrink adjustment and yield factor from 

1.20 to 1.211, and the butterfat recovery 

percentage from 90 percent to 94 

percent. 

1. Amend § 1000.50 by: 

a. revising paragraph (l); 

b. revising paragraph (n)(3)(i) and 

(n)(3)(ii); and 

c. revising paragraph (q)(3). 

The revisions read as follows: 

§ 1000.50 Class prices, component prices, 

and advanced pricing factors. 

* * * * * 

(l) Butterfat price. The butterfat price 

per pound, rounded to the nearest onehundredth cent, shall be the U.S. 

average NASS AA butter survey price 

reported by the Department for the 

month less 11.5 cents, with the result 

multiplied by 1.211. 

* * * * * 

(n) * * * 

(3) * * * 

(i) Subtract 16.5 cents from the price 

computed pursuant to paragraph (n)(1) 

of this section and multiply the result 

from 1.653; and 

(ii) Subtract 0.94 times the butterfat 

price computed pursuant to paragraph 

(1) of this section from the amount 

computed pursuant to paragraph 

(n)(3)(i) of this section; and 

* * * * * 

(q) * * * 

(3) An advanced butterfat price per 

pound, rounded to the nearest onehundredth cent, shall be calculated by 

computing a weighted average of the 2 

most recent U.S. average NASS AA 

butter survey prices announced before 

the 24th day of the month, subtracting 

11.5 cents from this average, and 

multiplying the result by 1.211. 

Proposal No. 7 

This proposal seeks to amend the 

Class III and Class IV product price 

formulas by eliminating the farm-toplant shrink and butterfat shrink 

adjustments to the yield factors. 

Proposal No. 8 

This proposal seeks to amend the 

Class III and Class IV product price 

formulas by changing the nonfat solids 

yield factor from 0.99 to 1.02 and 

changing the protein price yield factors 

for cheese from 1.383 to 1.405 and for 

butter from 1.572 to 1.653. 

1. Amend § 1000.50 by revising 

paragraphs (m), (n)(2), and (n)(3)(i) to 

read as follows: 

§ 1000.50 Class prices, component prices, 

and advanced pricing factors. 

* * * * * 

(m) Nonfat solids price. The nonfat 

solids price per pound, rounded to the 

nearest one-hundredth cent, shall be the 

U.S. average nonfat dry milk survey 

price reported by the Department for the 

month less 14 cents and multiplying the 

result by 1.02. 

(n) * * * 

(2) Subtract 16.5 cents from the price 

computed pursuant to paragraph (n)(1) 

of this section and multiply the result 

by 1.405; 

(3) * * * 

(i) Subtract 16.5 cents from the price 

computed pursuant to paragraph (n)(1) 

of this section and multiply the result 

by 1.653; 

* * * * * 


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6182 Federal Register / Vol. 72, No. 27 / Friday, February 9, 2007 / Proposed Rules 

Proposed by International Dairy Foods 

Association 

Proposal No. 9 

This proposal seeks to amend the 

Class III and Class IV product price 

formulas by adjusting the protein price 

formula to reflect the lower value and 

reduced volume of butterfat recoverable 

as whey cream. 

Proposed by Agri-Mark Dairy 

Cooperative 

Proposal No. 10 

This proposal seeks to amend the 

Class III and Class IV product price 

formulas by reducing the protein price 

to reflect the lower price of whey butter. 

2. Amend § 1000.50 by adding a new 

paragraph (n)(4), to read as follows: 

§ 1000.50 Class prices, component prices, 

and advanced pricing factors. 

* * * * * 

(n) * * * 

(4) Subtract the difference between 

the per pound value of AA butter and 

whey butter from the price computed in 

paragraph (n)(3) of this section. 

* * * * * 

Proposal No. 11 

This proposal seeks to amend the 

Class III and Class IV product price 

formulas by reducing the adjustment for 

cheese manufactured in 500-pound 

barrels contained in the protein price 

formula from 3 cents to 1.5 cents. 

1. Amend § 1000.50 by revising 

paragraph (n)(1)(ii), to read as follows: 

§ 1000.50 Class prices, component prices, 

and advanced pricing factors. 

* * * * * 

(n) * * * 

(1) * * * 

(ii) The U.S. average NASS survey 

price for 500-pound barrel cheddar 

cheese (38 percent moisture) reported 

by the Department for the month plus 

1.5 cents; 

* * * * * 

Proposed by International Dairy Foods 

Association 

Proposal No. 12 

This proposal seeks to amend the 

Class III and Class IV product price 

formulas by eliminating the 3-cent cost 

adjustment for cheese manufactured in 

500-pound barrels contained in the 

protein price formula. 

1. Amend § 1000.50 by revising 

paragraph (n)(1)(ii), to read as follows: 

§ 1000.50 Class prices, component prices, 

and advanced pricing factors. 

* * * * * 

(n) * * * 

(1) * * * 

(ii) The U.S. average NASS survey 

price for 500-pound barrel cheddar 

cheese (38 percent moisture) reported 

by the Department for the month; 

* * * * * 

Proposed by Dairy Farmers of America 

and Northwest Dairy Association 

Proposal No. 13 

This proposal seeks to amend the 

Class III and Class IV product price 

formulas by removing the barrel cheese 

price as a cost component of the protein 

price formula. 

1. Amend § 1000.50 by: 

(a) revising paragraph (n) introductory 

text; and 

(b) removing paragraphs (n)(1), 

(n)(1)(i) and (n)(1)(ii). 

The revision reads as follows: 

§ 1000.50 Class prices, component prices, 

and advanced pricing factors. 

* * * * * 

(n) The U.S. average NASS survey 

price for 40-lb. block cheese reported by 

the Department for the month; 

* * * * * 

Proposed by Agri-Mark Dairy 

Cooperative 

Proposal No. 14 

This proposal seeks to amend the 

Class III and Class IV product price 

formulas by using a combination of the 

weekly NASS and CME cheese price 

series to determine the cheese price to 

be used in the Class III and Class IV 

product price formulas. 

Proposed by Dairy Producers of New 

Mexico 

Proposal No. 15 

This proposal seeks to use a 

combination of the NASS price series 

and the CME price series to determine 

the price of butter, cheese, nonfat dry 

milk and dry whey to be used in the 

Class III and Class IV product price 

formulas. In addition, this proposal 

would direct NASS to survey total milk 

components purchased and their prices 

during the NASS Dairy Product Price 

Survey. 

1. Amend § 1000.50 by: 

(a) revising the introductory text; 

(b) revising paragraph (l); 

(c) revising paragraph (m); 

(d) revising paragraph (n)(1); and 

(e) revising paragraphs (q) 

introductory text, (q)(1)(i), (q)(2)(ii), and 

(q)(3). 

The revisions read as follows: 

§ 1000.50 Class prices, component prices, 

and advanced pricing factors. 

Class prices per hundredweight of 

milk containing 3.5 percent butterfat, 

component prices, and advanced 

pricing factors shall be as follows. The 

prices and pricing factors described in 

paragraphs (a), (b), (c), (e), (f) and (q) of 

this section shall be based on a simple 

average of the most recent 2 weekly 

prices announced by the Chicago 

Mercantile Exchange (CME) as reported 

in Dairy Market News and the prices 

described in paragraph (o) of this 

section shall be based on a weighted 

average for the preceding month of the 

weekly prices announced by the 

National Agricultural Statistical Service 

(NASS) before the 24th day of the 

month. These prices shall be announced 

on or before the 23rd day of the month 

and shall apply to milk received during 

the following month. The prices 

described in paragraphs (g) through (n) 

and (p) of this section shall be based on 

a simple daily average for the preceding 

month of weekly prices announced by 

the CME as reported in Dairy Market 

News and the prices described in 

paragraph (o) of this section shall be 

based on a weighted average for the 

preceding month of the weekly prices 

announced by NASS. These prices shall 

be announced on or before the 5th day 

of the month and shall apply to milk 

received during the preceding month. 

The price described in paragraph (d) of 

this section shall be derived from the 

Class II skim milk price announced on 

or before the 23rd day of the month 

preceding the month to which it applies 

and the butterfat price announced on or 

before the 5th day of the month 

following the month to which it applies. 

* * * * * 

(l) Butterfat price. The butterfat price 

per pound, rounded to the nearest onehundredth cent, shall be the simply 

daily average AA Butter survey price 

reported by the CME as reported in 

Dairy Market News for the month less 

11.5 cents, with the result multiplied by 

1.20. 

(m) Nonfat solids price. The nonfat 

solids price per pound, rounded to the 

nearest one-hundredth cent, shall be the 

simply daily average nonfat dry milk 

survey price reported by the CME as 

reported in Dairy Market News for the 

month less 14 cents and multiplying the 

result by 0.99. 

(n) * * * 

(1) Compute a simple daily average of 

the amounts described in paragraphs 

(n)(1)(i) and (ii) of this section: 

(i) The U.S. average NASS survey 

price for 40-lb. block cheese reported by 

the CME as reported in Dairy Market 

News for the month; and 

(ii) The U.S. average NASS survey 

price for 500-pound barrel cheddar 


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Federal Register / Vol. 72, No. 27 / Friday, February 9, 2007 / Proposed Rules 6183 

cheese (38 percent moisture) reported 

by the CME for the month plus 3 cents; 

* * * * * 

(q) Advanced pricing factors. For the 

purpose of computing the Class I skim 

milk price, the Class II skim milk price, 

the Class II nonfat solids price and the 

Class I butterfat price for the following 

month, the following pricing factors 

shall be computed using the simple 

daily average of the 2 most recent CME 

average prices for butterfat, cheese, and 

nonfat dry milk as reported in Dairy 

Market News and the NASS weighted 

average dry whey price from weekly 

survey prices announced before the 24th 

day of the month: 

(1) * * * 

(i) Following the procedure set forth 

in paragraphs (n) and (o) of this section, 

but using the simple daily average of the 

2 most recent weeks’ CME prices for 

cheese and butter and the weighted 

average of the 2 most recent average 

weekly survey prices for dry whey 

announced before the 24th day of the 

month, compute a protein price and an 

other solids price; 

* * * * * 

(2) * * * 

(i) Following the procedure set forth 

in paragraph (m) of this section, but 

using the simple daily average prices of 

the 2 most recent weeks CME prices as 

reported in Dairy Market News before 

the 24th day of the month, compute a 

nonfat solids price; and 

* * * * * 

(3) An advanced butterfat price per 

pound, rounded to the nearest onehundredth cent, shall be calculated by 

computing a simple daily average of the 

2 most recent weeks’ CME AA Butter 

prices as reported in Dairy Market News 

announced before the 24th day of the 

month, subtracting 11.5 cents from this 

average, and multiplying the result by 

1.20. 

Proposed by National All-Jersey Inc. 

Proposal No. 16 

This proposal would amend the Class 

III and Class IV product price formulas 

by eliminating the other solids price and 

adding the equivalent value of dry whey 

to the protein price formula. 

1. Amend § 1000.50 by: 

(a) revising paragraph (i); 

(b) adding new paragraph (n)(4); 

(c) removing paragraph (o); 

(d) revising paragraph (q)(1)(i); and 

(e) removing paragraphs (q)(1)(ii) and 

(q)(1)(iv). 

The additions and revisions read as 

follows: 

§ 1000.50 Class prices, component prices, 

and advanced pricing factors. 

* * * * * 

(i) Class III skim milk price. The Class 

III skim milk price per hundredweight, 

rounded to the nearest cent, shall be the 

protein price per pound times 3.1. 

* * * * * 

(n) * * * 

(4) Add to the amount computed 

pursuant to paragraph (n)(3) of this 

section the U.S. average NASS dry whey 

survey price reported by the Department 

for the month minus 19.56 cents, with 

the result multiplied by 1.96, rounded 

to the nearest one-hundredth cent. 

* * * * * 

(q) * * * 

(1) * * * 

(i) Following the procedure set forth 

in paragraph (n) of this section, but 

using the weighted average of the 2 most 

recent NASS U.S. average weekly 

survey prices announced before the 24th 

day of the month, compute a protein 

price; 

* * * * * 

2. Amend § 1000.53 by removing 

paragraph (a)(10) and redesignating 

paragraph (a)(11) as (a)(10). 

Proposed by National Milk Producers 

Federation 

Proposal No. 17 

This proposal seeks to amend the 

Class III and Class IV product price 

formulas to incorporating a monthly 

energy cost adjustment based on 

monthly changes in the producer price 

indices for industrial natural gas and 

industrial electricity as published by the 

Bureau of Labor Statistics. 

1. Amend § 1000.50 by: 

(a) revising paragraph (l); 

(b) revising paragraph (m); 

(c) revising paragraph (n)(2); and 

(d) revising paragraphs (n)(3) 

introductory text, (n)(3)(i) and (o). 

The revisions and additions read as 

follows: 

§ 1000.50 Class prices, component prices, 

and advanced pricing factors. 

* * * * * 

(l) Butterfat price. The butterfat price 

per pound, rounded to the nearest onehundredth cent, shall be: 

(1) The U.S. average NASS AA Butter 

survey price reported by the Department 

for the month, 

(2) Less a manufacturing cost 

allowance equal to: 

(i) 12.02 cents plus, 

(ii) 0.5 cents times a figure equal to 

the latest monthly Producer Price Index 

for Industrial Natural Gas reported by 

the Bureau of Labor Statistics minus 

201.7 and divided by 201.7 plus, 

(iii) 0.9 cents times a figure equal to 

the latest monthly Producer Price Index 

for Industrial Electricity reported by the 

Bureau of Labor Statistics minus 147.2 

and divided by 147.2; 

(3) With the result multiplied by 1.20. 

(m) Nonfat solids price. The nonfat 

solids price per pound, rounded to the 

nearest one-hundredth cent, shall be: 

(1) The U.S. average NASS nonfat dry 

milk survey price reported by the 

Department for the month, 

(2) Less a manufacturing cost 

allowance equal to: 

(i) 15.7 cents plus 

(ii) 3.0 cents times a figure equal to 

the latest monthly Producer Price Index 

for Industrial Natural Gas reported by 

the Bureau of Labor Statistics minus 

201.7 and divided by 201.7, plus 

(iii) 1.5 cents times a figure equal to 

the latest monthly Producer Price Index 

for Industrial Electricity reported by the 

Bureau of Labor Statistics minus 147.2 

and divided by 147.2; 

(3) With the result multiplied by 0.99. 

(n) * * * 

(2) From the price computed pursuant 

to paragraph (n)(1) of this section 

subtract a manufacturing cost allowance 

equal to: 

(i) 16.82 cents, plus 

(ii) 0.7 cents times a figure equal to 

the latest monthly Producer Price Index 

for Industrial Natural Gas reported by 

the Bureau of Labor Statistics minus 

201.7 and divided by 201.7 plus, 

(iii) 0.8 cents times a figure equal to 

the latest monthly Producer Price Index 

for Industrial Electricity reported by the 

Bureau of Labor Statistics minus 147.2 

and divided by 147.2; 

(3) Multiply the amount computed to 

paragraph (n)(2) of this section by 1.383, 

then an amount computed as follows: 

(i) Subtract the manufacturing cost 

allowance computed pursuant to 

paragraph (n)(2) of this section from the 

price computed pursuant to paragraph 

(n)(1) of this section and multiply the 

result by 1.572; 

* * * * * 

(o) Other solids price. The other solids 

price per pound, rounded to the nearest 

one-hundredth cent, shall be: 

(1) The U.S. average NASS dry whey 

survey price reported by the Department 

for the month, 

(2) Less a manufacturing cost 

allowance equal to: 

(i) 19.56 cents plus, 

(ii) 2.3 cents times a figure equal to 

the latest monthly Producer Price Index 

for Industrial Natural Gas reported by 

the Bureau of Labor Statistics minus 

201.7 and divided by 201.7 plus, 

(iii) 1.5 cents times a figure equal to 

the latest monthly Producer Price Index 

for Industrial Electricity reported by the 

Bureau of Labor Statistics minus 147.2 

and divided by 147.2; 


rwilkins on PROD1PC63 with PROPOSAL
6184 Federal Register / Vol. 72, No. 27 / Friday, February 9, 2007 / Proposed Rules 

(3) With the result multiplied by 1.03. 

* * * * * 

Proposed by Maine Dairy Industry 

Association 

Proposal No. 18 

This proposal seeks to incorporate a 

factor to account for any monthly spread 

between component price calculations 

for milk and a competitive pay price for 

equivalent Grade A milk. 

The proposal seeks to derive a factor 

by using an updated version of the 

Department’s 1994–1996 simulated 

analysis of a competitive pay price for 

Grade A milk. The proposal would 

modify the previously used survey to 

adapt it to regulatory changes, 

specifically related to component 

pricing. The proposal seeks an outcome 

whereby a survey of plants located in 

nine States, including California, as 

performed to develop a competitive 

Grade A price series, would be used to 

identify a spread, if any between the 

component and competitive values of 

Grade A raw milk. That spread, in 

whole or in part, would be incorporated 

into Federal order minimum prices. 

Proposed by Dairy Programs, 

Agricultural Marketing Service 

Proposal No. 19 

For all Federal Milk Marketing 

Orders, make such changes as may be 

necessary to make the entire marketing 

agreements and the orders conform with 

any amendments thereto that may result 

from this hearing. 

Copies of this notice of hearing and 

the orders may be procured from the 

Market Administrator of each of the 

aforesaid marketing areas, or from the 

Hearing Clerk, United States 

Department of Agriculture, STOP 

9200—Room 1031, 1400 Independence 

Avenue, SW., Washington, DC 20250–

9200, or may be inspected there. 

Copies of the transcript of testimony 

taken at the hearing will not be available 

for distribution through the Hearing 

Clerk’s Office. If you wish to purchase 

a copy, arrangements may be made with 

the reporter at the hearing. 

From the time that a hearing notice is 

issued and until the issuance of a final 

decision in a proceeding, Department 

employees involved in the decisionmaking process are prohibited from 

discussing the merits of the hearing 

issues on an ex parte basis with any 

person having an interest in the 

proceeding. For this particular 

proceeding, the prohibition applies to 

employees in the following 

organizational units: 

Office of the Secretary of Agriculture, 

Office of the Administrator, 

Agricultural Marketing Service, 

Office of the General Counsel, 

Dairy Programs, Agricultural 

Marketing Service (Washington office) 

and the Offices of all Market 

Administrators. 

Procedural matters are not subject to 

the above prohibition and may be 

discussed at any time. 

Dated: February 5, 2007. 

Lloyd C. Day, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. 07–570 Filed 2–6–07; 11:54 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF ENERGY 

Office of Energy Efficiency and 

Renewable Energy 

10 CFR Part 430 

[Docket No. EE–RM/STD–01–350] 

RIN 1904–AA78 

Energy Conservation Program for 

Consumer Products: Energy 

Conservation Standards for 

Residential Furnaces and Boilers 

AGENCY: Office of Energy Efficiency and 

Renewable Energy, Department of 

Energy. 

ACTION: Notice of data availability and 

reopening of comment period. 

SUMMARY: A notice of proposed 

rulemaking (NOPR) to amend the 

current minimum energy conservation 

standards for residential furnaces and 

boilers was published in the Federal 

Register on October 6, 2006. 71 FR 

59204. On October 30, 2006, the 

Department of Energy (DOE) held a 

public meeting for interested parties to 

provide comments and discuss relevant 

issues. At the public meeting, DOE 

indicated it would respond to two 

particular questions that stakeholders 

raised regarding DOE’s NOPR estimates 

for potential energy savings associated 

with regional standards for nonweatherized gas furnaces in Northern 

regions, and regarding new installation 

costs for oil-fired furnaces. This notice 

both addresses the stakeholders 

questions and reopens the comment 

period to provide an opportunity for 

public review and comment on DOE’s 

response to each question. 

DATES: DOE will accept comments until 

February 26, 2007. 

ADDRESSES: DOE will accept comments, 

data, and information regarding the 

proposed rule no later than the date 

provided in the DATES section. Any 

comments submitted must include the 

docket number EE–RM/STD–01–350 

and/or Regulatory Information Number 

(RIN) 1904–AA78. Comments may be 

submitted using any of the following 

methods: 

1. Federal eRulemaking Portal:http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

2. E-mail:ResidentialFBNOPR

Comments@ee.doe.gov. Include the 

docket number EE–RM/STD–01–350 

and/or RIN 1904–AA78 in the subject 

line of the message. 

3. Mail: Ms. Brenda Edwards-Jones, 

U.S. Department of Energy, Building 

Technologies Program, Mailstop EE–2J, 

1000 Independence Avenue, SW., 

Washington, DC 20585–0121. Please 

submit one signed original paper copy. 

4. Hand Delivery/Courier: Ms. Brenda 

Edwards-Jones, U.S. Department of 

Energy, Building Technologies Program, 

Room 1J–018, 1000 Independence 

Avenue, SW., Washington, DC, 20585. 

Telephone: (202) 586–2945. Please 

submit one signed original paper copy. 

Electronic comments must be submitted 

in WordPerfect, Microsoft Word, 

Portable Document Format (PDF), or 

text (ASCII) file format. Avoid the use 

of special characters or any form of 

encryption. 

Copies of public comments may be 

examined in the Resource Room of the 

Appliance Standards Office of the 

Building Technologies Program, Room 

1J–018 in the Forrestal Building at the 

U.S. Department of Energy, 1000 

Independence Avenue, SW., 

Washington, DC, between the hours of 

9 a.m. and 4 p.m., Monday through 

Friday, except Federal holidays. Please 

call Ms. Brenda Edwards-Jones at the 

above telephone number for additional 

information about visiting the Resource 

Room. 

Please note: the DOE’s Freedom of 

Information Reading Room (formerly Room 

1E–190 at the Forrestal Building) is no longer 

servicing rulemakings. 

FOR FURTHER INFORMATION CONTACT: 

Mohammed Khan, U.S. Department of 

Energy, Office of Energy Efficiency and 

Renewable Energy, Forrestal Building, 

Mailstop EE–2J, 1000 Independence 

Avenue SW., Washington, DC 20585–

0121, (202) 586–7892, E-mail: 

Mohammed.Khan@ee.doe.gov; or 

Francine Pinto, U.S. Department of 

Energy, Office of General Counsel, 

Forrestal Building, Mailstop GC–72, 

1000 Independence Avenue, SW., 

Washington, DC 20585, (202) 586–7432, 

E-mail: Francine.Pinto@ee.doe.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 


rwilkins on PROD1PC63 with PROPOSAL