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

28512

Vol. 61, No. 109

Wednesday, June 5, 1996

DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 457

RIN 0563–AB56

Common Crop Insurance Regulations;

Texas Citrus Fruit Crop Insurance

Provisions

AGENCY: Federal Crop Insurance

Corporation, Agriculture.

ACTION: Proposed rule.

SUMMARY: The Federal Crop Insurance

Corporation (FCIC) proposes specific

crop provisions for the insurance of

Texas citrus fruit. The provisions will

be used in conjunction with the

Common Crop Insurance Policy Basic

Provisions, which contain standard

terms and conditions common to most

crops. The intended effect of this action

is to provide policy changes to better

meet the needs of the insured and

combine the current Texas Citrus

Endorsement with the Common Crop

Insurance Policy for ease of use and

consistency of terms.

DATES: Written comments, data, and

opinions on this proposed rule will be

accepted until close of business July 5,

1996 and will be considered when the

rule is to be made final. The comment

period for information collections under

the Paperwork Act of 1995 continues

through August 5, 1996.

ADDRESSES: Interested persons are

invited to submit written comments to

the Chief, Product Development Branch,

Federal Crop Insurance Corporation,

United States Department of

Agriculture, 9435 Holmes Road, Kansas

City, MO 64131. Written comments will

be available for public inspection and

copying in room 0324, South Building,

USDA, 14th and Independence Avenue,

S.W., Washington, D.C., 8:15 a.m.–5:45

p.m., Monday through Friday.

FOR FURTHER INFORMATION CONTACT:

Louise Narber, Program Analyst,

Research and Development Division,

Product Development Branch, FCIC,

Kansas City, MO, address listed above,

telephone (816) 926–7730.

SUPPLEMENTARY INFORMATION:

Executive Order No. 12866 and

Departmental Regulation 1512–1

This action has been reviewed under

United States Department of Agriculture

(USDA) procedures established by

Executive Order No. 12866 and

Departmental Regulation 1512–1. This

action constitutes a review as to the

need, currency, clarity, and

effectiveness of these regulations under

those procedures. The sunset review

date established for these regulations is

April 30, 2001.

This rule has been determined to be

not significant for the purposes of

Executive Order No. 12866 and,

therefore, has not been reviewed by the

Office of Management and Budget

(OMB).

Paperwork Reduction Act of 1995

The information collection

requirements contained in these

regulations were previously submitted

to OMB pursuant to the Paperwork

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

chapter 35) under OMB control number

0563–0003 through September 30, 1998.

The amendments set forth in this

proposed rule do not contain additional

information collections that require

clearance by OMB under the provisions

of 44 U.S.C. chapter 35.

The title of this information collection

is ‘‘Catastrophic Risk Protection Plan

and Related Requirements including,

Common Crop Insurance Regulations;

Texas Citrus Fruit Crop Insurance

Provisions.’’ The information to be

collected includes: a crop insurance

acreage report, an insurance application,

and continuous contract. Information

collected from the acreage report and

application is electronically submitted

to FCIC by the reinsured companies.

Potential respondents to this

information collection are producers of

Texas citrus fruit that are eligible for

Federal crop insurance.

The information requested is

necessary for the reinsured companies

and FCIC to provide insurance and

reinsurance, determine eligibility,

determine the correct parties to the

agreement or contract, determine and

collect premiums or other monetary

amounts, and pay benefits.

All information is reported annually.

The reporting burden for this collection

of information is estimated to average

16.9 minutes per response for each of

the 3.6 responses from approximately

1,755,015 respondents. The total annual

burden on the public for this

information collection is 2,676,932

hours.

The comment period for information

collections under the Paperwork

Reduction Act of 1995 continues for the

following: (a) whether the proposed

collection of information is necessary

for the proper performance of the

functions of the agency, including

whether the information shall have

practical utility; (b) the accuracy of the

agency’s estimate of the burden of the

proposed collection of information; (c)

ways to enhance the quality, utility, and

clarity of the information to be

collected; and (d) ways to minimize the

burden of the collection of information

on respondents, including through the

use of automated collection techniques

or other forms of information gathering

technology.

Comments regarding paperwork

reduction should be submitted to the

Desk Officer for Agriculture, Office of

Information and Regulatory Affairs,

Office of Management and Budget,

Washington, D.C. 20503 and to Bonnie

Hart, Advisory and Corporate

Operations Staff, Regulatory Review

Group, USDA, Farm Service Agency,

P.O. Box 2145, Ag Box 0570,

Washington, D.C. 20013–2415.

Telephone (202) 690–2857. Copies of

the information collection may be

obtained from Bonnie Hart at the above

stated address.

Unfunded Mandates Reform Act of

1995

Title II of the Unfunded Mandate

Reform Act of 1995 (UMRA), Public

Law 104–4, establishes requirements for

Federal agencies to assess the effects of

their regulatory actions on State, local,

and tribal governments and the private

sector. Under section 202 of the UMRA,

FCIC generally must prepare a written

statement, including a cost-benefit

analysis, for proposed and final rules

with ‘‘Federal mandates’’ that may

result in expenditures of State, local, or

tribal governments, in the aggregate, or

to the private sector, of $100 million or

more in any 1 year. When such a

statement is needed for a rule, section
Federal Register / Vol. 61, No. 109 / Wednesday, June 5, 1996 / Proposed Rules 28513

205 of the UMRA generally requires

FCIC to identify and consider a

reasonable number of regulatory

alternatives and adopt the least costly,

more cost-effective or least burdensome

alternative that achieves the objectives

of the rule.

This rule contains no Federal

mandates (under the regulatory

provisions of title II of the UMRA) of

State, local, and tribal governments or

the private sector. Thus, this rule is not

subject to the requirements of sections

202 and 205 of the UMRA.

Executive Order No. 12612

It has been determined under section

6(a) of Executive Order No. 12612,

Federalism, that this rule does not have

sufficient Federalism implications to

warrant the preparation of a Federalism

Assessment. The provisions contained

in this rule will not have a substantial

direct effect on States or their political

subdivisions, or on the distribution of

power and responsibilities among the

various levels of government.

Regulatory Flexibility Act

This regulation will not have a

significant impact on a substantial

number of small entities. Under the

current regulations, an insured is

required to complete an application and

acreage report. If the crop is damaged or

destroyed, the insured is required to

give notice of loss and provide the

necessary information to complete a

claim for indemnity. An insured must

use actual records of production or

receive a transitional yield. This

regulation does not alter those

requirements. Therefore, the amount of

work required of the insurance

companies and Farm Service Agency

(FSA) offices delivering and servicing

these policies will not increase

significantly from the amount of work

currently required. This rule does not

have any greater or lesser impact on the

insured. Therefore, this action is

determined to be exempt from the

provisions of the Regulatory Flexibility

Act (5 U.S.C. 605), and no Regulatory

Flexibility Analysis was prepared.

Federal Assistance Program

This program is listed in the Catalog

of Federal Domestic Assistance under

No. 10.450.

Executive Order No. 12372

This program is not subject to the

provisions of Executive Order No.

12372, which require intergovernmental

consultation with State and local

officials. See the Notice related to 7 CFR

part 3015, subpart V, published at 48 FR

29115, June 24, 1983.

Executive Order No. 12778

The Office of the General Counsel has

determined that these regulations meet

the applicable standards provided in

sections 2(a) and 2(b)(2) of Executive

Order No. 12778. The provisions of this

rule will not have a retroactive effect

prior to the effective date. The

provisions of this rule will preempt

State and local laws to the extent such

State and local laws are inconsistent

herewith. The administrative appeal

provisions in 7 CFR parts 11 and 780

must be exhausted before action for

judicial review may be brought.

Environmental Evaluation

This action is not expected to have a

significant impact on the quality of the

human environment, health, and safety.

Therefore, neither an Environmental

Assessment nor an Environmental

Impact Statement is needed.

National Performance Review

This regulatory action is being taken

as part of the National Performance

Review initiative to eliminate

unnecessary or duplicative regulations

and improve those that remain in force.

Background

FCIC proposes to add to the Common

Crop Insurance Regulations (7 CFR part

457), a new section, 7 CFR § 457.119,

Texas Citrus Fruit Crop Insurance

Provisions. The provisions will be

effective for the 1998 and succeeding

crop years. The proposed provisions

will replace those found at 7 CFR

§ 401.115 (Texas Citrus Endorsement).

Upon publication of 7 CFR § 457.119 as

a final rule, the provisions for insuring

Texas citrus fruit contained herein will

supersede the current provisions

contained in 7 CFR § 401.115. By

separate rule, FCIC will revise 7 CFR

§ 401.115 to restrict its effect through

the 1997 crop year and later remove that

section.

This rule makes minor editorial and

format changes to improve the Texas

Citrus Crop Insurance Endorsement’s

compatibility with the Common Crop

Insurance Policy. In addition, FCIC is

proposing substantive changes in the

provisions for insuring Texas citrus fruit

as follows:

1. Section 1—Add definitions for

‘‘days,’’ ‘‘direct marketing,’’ ‘‘FSA,’’

‘‘good farming practices,’’

‘‘interplanted,’’ ‘‘irrigated practice,’’

‘‘local market price,’’ ‘‘production

guarantee (per acre),’’ ‘‘type,’’ ‘‘ton,’’

and ‘‘written agreement’’ for

clarification purposes.

2. Section 1—Change the definitions

for ‘‘freeze,’’ ‘‘harvest,’’ ‘‘hedged,’’ ‘‘noncontiguous land,’’ and ‘‘topped,’’ for

clarification.

3. Section 1—Delete the definition for

‘‘frost’’ because frost as a cause of loss

has been eliminated as unnecessary.

The definition of ‘‘freeze’’ includes

damage from frost. Also, replace the

definition of ‘‘excess moisture’’ with

‘‘excess rain’’ for clarification.

4. Section 2—Add provisions to allow

optional unit division by section,

section equivalent, or FSA Farm Serial

Number, or by non-contiguous land so

that the unit structure will be the same

in both the Texas Citrus Fruit Provisions

and the Texas Citrus Tree Provisions.

The previous provisions only allowed

basic units to be divided into more than

one unit by section if each unit was

non-contiguous.

5. Section 3(a)—Clarify that an

insured may select one price election for

each citrus type, and that the price

election selected for each type need not

bear the same percentage relationship to

the maximum price offered for each

type. Since each type of Texas citrus

fruit is considered a separate crop, it

should not be treated any differently

than any other crop with a separate

price election. The insured may select

any available price election. However, if

separate price elections are available by

variety within each type, the price

elections the insured chooses within the

type must have the same percentage

relationship to the maximum price

offered by the insurance provider for

each variety within the type.

6. Section 3(b)—Add a provision for

a 1-year lag period for the insured to

report citrus production for Actual

Production History (APH) because all of

the fruit will not be harvested until after

the production reporting date.

7. Section 3(c)—Add provisions for

reporting the age and type, if applicable,

of any interplanted perennial crop, its

planting pattern, and any other

information that the insurance provider

requests in order to establish the yield

upon which the insurance guarantee is

based. If the producer fails to notify the

insurance provider of any circumstances

that may cause the expected yield to fall

below the yield upon which the

insurance guarantee is based, the

insurance provider will reduce the

production guarantee at any time the

insurance provider becomes aware of

the circumstances. This allows the

insurance provider to limit liability

before insurance attaches based on the

condition of the citrus trees.

8. Section 3(d)—The yield upon

which the guarantee is based will be

determined from APH yields unless

previous damage requires establishment

of the yield based on the appraised yield
28514 Federal Register / Vol. 61, No. 109 / Wednesday, June 5, 1996 / Proposed Rules

for the insured acreage. Currently the

guarantee is based on crop appraisals

because a hard freeze severely damaged

the citrus trees a few years ago. Enough

time has passed to determine the

producers’ guarantee based on the

producers’ individual yield.

9. Section 5—Change the cancellation

and termination dates from November

30 to November 20 to be consistent with

other perennial crops.

10. Section 6—Clarify that all

premium computations will be based on

the final stage production guarantee.

11. Section 7—Include the insurable

citrus type designations in the Special

Provisions rather than in the Texas

Citrus Fruit Provisions. This will

prevent the need for an amendment to

the Texas Citrus Fruit Crop Provisions

if it is later determined that additional

types need to be added. Also, eliminate

the provision that requires acceptable

production records for the previous crop

year for insurance to attach. There is a

1 year lag period for reporting

production.

12. Section 8—Add a provision

making interplanted citrus insurable if

planted with another perennial crop

unless after an inspection, the insurance

provider determines it does not meet

insurability requirements. This clause

will make insurance available to more

producers and will reduce the number

of acres for which coverage would only

be available under the noninsured crop

disaster assistance program (NAP).

13. Section 9—Change the beginning

of the insurance period from December

1 to November 21 to be consistent with

other perennial crops. However, for the

1st crop year for which insurance is

sought, if the application is accepted by

the insurance provider after November

20, insurance will attach on the 10th

day after the application is received in

the insurance provider’s local office.

The current requirement that insurance

will not attach for 30 days after the

application is received if not received

until after November 30, creates an

unnecessary lag time during which the

crop is not covered. Add provisions to

clarify the procedure for insuring

acreage when an insurable share is

acquired or relinquished on or before

the acreage reporting date. Under the

current Texas Citrus Endorsement for

acreage acquired (for which an

application is in place) on or before the

acreage reporting date, coverage would

attach at the time the insurer considers

the crop inspection as being acceptable

provided it was on or after November 30

(and not a late filed application and the

first year of insurance). In the same

situation under these new provisions,

coverage will have started on November

21 (except for a late filed application

and the 1st year of insurance) even if the

insurer considers the inspection as

being acceptable on January 14. Under

the current Texas Citrus Endorsement

for acreage relinquished on or before the

acreage reporting date but after coverage

had attached, the premium would still

be due from the insured even if the

insured no longer had an insurable

interest. In the same situation under

these new provisions, insurance will not

be considered to have attached so the

premium will not be due unless a

transfer of right to an indemnity was

completed.

14. Section 10—Add a clause

clarifying that any failure of the

irrigation water supply must be caused

by an insured peril occurring during the

insurance period. Delete ‘‘frost’’ as a

cause of loss because the definition of

freeze also includes damage from frost.

Also, delete damage by Mediterranean

Fruit Fly as an insurable cause and

specify that we will not insure against

damage or loss of production due to

disease or insect infestation, unless an

insured cause of loss prevents the

proper application of control measures,

causes properly applied control

measures to be ineffective, or causes

disease or insect infestation for which

no effective control mechanism is

available.

15. Section 11—Require the producer

to give notice at least 15 days before any

production from any unit will be

marketed directly to consumers because

insureds usually have inadequate

records of such marketing and an

appraisal is necessary to accurately

determine the direct marketed

production.

16. Section 12—Add a provision

clarifying the procedure for when the

insured intends to abandon or not care

for the acreage. If the insured and the

insurer agree on potential production on

acreage the insured wishes to abandon

or no longer care for, the insurance

period for that acreage will end. If

agreement is not reached, the claim may

be deferred if the insured agrees to

continue to care for the crop. The

insurance provider will make another

appraisal when the insured notifies

them of further damage or that harvest

is general in the area unless the crop is

harvested, in which case the harvested

production will be used to determine

the production to count. If the insured

does not continue to care for the crop

the appraisal made prior to deferring the

claim will be used to determine the

production to count. Also add a

provision to clarify that if individual

records of juice content are not

available, the average juice content will

be obtained from the nearest juice plant,

if available, or from an appraisal to

determine the average juice content.

Delete the provision which allows the

contract price to be an applicable price

for undamaged citrus fruit if the

contract was executed between the

producer and buyer before damage

occurred because it allowed a potential

for abuse and was seldom used.

17. Section 13—Add provisions for

providing insurance coverage by written

agreement. FCIC has a long standing

policy of permitting certain

modifications of the insurance contract

by written agreement for some policies.

This amendment will extend this

practice to Texas citrus fruit and will

make it possible to tailor the policy to

a specific insured in certain instances.

List of Subjects in 7 CFR Part 457

Crop insurance, Texas citrus fruit.

Proposed Rule

Pursuant to the authority contained in

the Federal Crop Insurance Act, as

amended (7 U.S.C. 1501 et seq.), the

Federal Crop Insurance Corporation

hereby proposes to amend the Common

Crop Insurance Regulations (7 CFR part

457), effective for the 1998 and

succeeding crop years, as follows:

PART 457—[AMENDED]

1. The authority citation for 7 CFR

part 457 continues to read as follows:

Authority: 7 U.S.C. 1506(l) and 1506(p).

2. A new § 457.119 is added to read

as follows:

§ 457.119 Texas Citrus Fruit Crop

Insurance Provisions

The Texas Citrus Fruit Crop Insurance

Provisions for the 1998 and succeeding

crop years are as follows:

UNITED STATES DEPARTMENT OF

AGRICULTURE

Federal Crop Insurance Corporation

TEXAS CITRUS FRUIT CROP PROVISIONS

If a conflict exists among the Basic

Provisions (§ 457.8), these crop provisions,

and the Special Provisions, the Special

Provisions will control these crop provisions

and the Basic Provisions, and these crop

provisions will control the Basic Provisions.

1. Definitions

Crop year—The period beginning with the

date insurance attaches to the citrus crop and

extends through normal harvest time, and

will be designated by the calendar year

following the year in which the bloom is

normally set.

Days—Calendar days.

Direct marketing—Sale of the insured crop

directly to consumers without the

intervention of an intermediary such as a

wholesaler, retailer, packer, processor,
Federal Register / Vol. 61, No. 109 / Wednesday, June 5, 1996 / Proposed Rules 28515

shipper, or buyer. Examples of direct

marketing include selling through an on-farm

or roadside stand or a farmer’s market, and

permitting the general public to enter the

field for the purpose of picking all or a

portion of the crop.

Excess rain—An amount of precipitation

that damages the crop.

Excess wind—A natural movement of air

that has sustained speeds in excess of 58

miles per hour recorded at the U. S. Weather

Service reporting station nearest to the crop

at the time of crop damage.

Freeze—The formation of ice in the cells of

the tree or its fruit caused by low air

temperatures.

FSA—The Farm Service Agency, an agency

of the United States Department of

Agriculture or any successor agency.

Good farming practices—The cultural

practices generally in use in the county for

the crop to make normal progress toward

maturity and produce at least the yield used

to determine the production guarantee, and

generally recognized by the Cooperative

Extension Service as compatible with

agronomic and weather conditions in the

county.

Harvest—The severance of mature citrus

fruit from the tree by pulling, picking, or any

other means, or by collecting marketable fruit

from the ground.

Hedged—A process of trimming the

branches of the citrus trees for better or more

fruitful growth of the citrus fruit.

Interplanted—Acreage on which two or

more crops are planted in any form of

alternating or mixed pattern.

Irrigated practice—A method of producing

a crop by which water is artificially applied

during the growing season by appropriate

systems and at the proper times, with the

intention of providing the quantity of water

needed to produce at least the yield used to

establish the irrigated production guarantee

on the irrigated acreage planted to the

insured crop.

Local market price—The applicable citrus

price per ton offered by buyers in the area in

which you normally market the insured crop.

Non-contiguous land—Any two or more

tracts of land owned by you, or rented by you

for any consideration other than a share in

the insured crop, whose boundaries do not

touch at any point. Land that is separated by

a public or private right-of way, waterway or

irrigation canal will be considered to be

touching.

Production guarantee (per acre):

(a) First stage production guarantee—The

second stage production guarantee

multiplied by 40 percent.

(b) Second stage production guarantee—

The quantity of citrus (in tons) determined by

multiplying the approved yield per acre by

the coverage level percentage you elect.

Ton—Two thousand (2,000) pounds

avoirdupois.

Topped—A process of trimming the upper

most portion of the citrus trees for better and

more fruitful growth of the citrus fruit.

Type—Classes of fruit with similar

characteristics that are grouped for insurance

purposes as specified in the Special

Provisions.

Written agreement—A written document

that alters designated terms of a policy in

accordance with section 13.

2. Unit Division

(a) A unit as defined in section 1

(Definitions) of the Basic Provisions (§ 457.8),

will be divided into basic units by each citrus

type designated in the Special Provisions.

(b) Unless limited by the Special

Provisions, these basic units may be divided

into optional units if, for each optional unit

you meet all the conditions of this section or

if a written agreement to such division exists.

(c) Basic units may not be divided into

optional units on any basis including, but not

limited to, production practice, type, and

variety, other than as described in this

section.

(d) If you do not comply fully with these

provisions, we will combine all optional

units that are not in compliance with these

provisions into the basic unit from which

they were formed. We will combine the

optional units at any time we discover that

you have failed to comply with these

provisions. If failure to comply with these

provisions is determined to be inadvertent,

and the optional units are combined, that

portion of the premium paid for the purpose

of electing optional units will be refunded to

you pro rata for the units combined.

(e) All optional units must be identified on

the acreage report for each crop year.

(f) The following requirements must be met

for each optional unit:

(1) You must have records, which can be

independently verified, of acreage and

production for each optional unit for at least

the last crop year used to determine your

production guarantee;

(2) You must have records of marketed

production or measurement of stored

production from each optional unit

maintained in such a manner that permits us

to verify the production from each optional

unit, or the production from each unit must

be kept separate until loss adjustment is

completed by us; and

(3) Each optional unit must meet one of the

following criteria as applicable:

(i) Optional Units by Section, Section

Equivalent, or FSA Farm Serial Number:

Optional units may be established if each

optional unit is located in a separate legally

identified section. In the absence of sections,

we may consider parcels of land legally

identified by other methods of measure

including, but not limited to Spanish grants,

railroad surveys, leagues, labors, or Virginia

Military Lands, as the equivalent of sections

for unit purposes. In areas that have not been

surveyed using the systems identified above,

or another system approved by us, or in areas

where such systems exist but boundaries are

not readily discernible, each optional unit

must be located in a separate farm identified

by a single FSA Farm Serial Number; or

(ii) Optional Units on Acreage Located on

Non-Contiguous Land: In lieu of establishing

optional units by section, section equivalent

or FSA Farm Serial Number, optional units

may be established if each optional unit is

located on non-contiguous land.

3. Insurance Guarantees, Coverage Levels,

and Prices for Determining Indemnities

In addition to the requirements of section

3 (Insurance Guarantees, Coverage Levels,

and Prices for Determining Indemnities) of

the Basic Provisions (§ 457.8):

(a) You may select only 1 price election

and coverage level for each citrus fruit type

designated in the Special Provisions that you

elect to insure. The price election you choose

for each type need not bear the same

percentage relationship to the maximum

price offered by us for each type. For

example, if you choose one hundred percent

(100%) of the maximum price election for

early oranges, you may choose seventy-five

percent (75%) of the maximum price election

for late oranges. However, if separate price

elections are available by variety within each

type, the price elections you choose within

the type must have the same percentage

relationship to the maximum price offered by

us for each variety within the type.

(b) Instead of reporting your citrus

production for the previous crop year, as

required by section 3 of the Basic Provisions

(§ 457.8), there is a one-year lag period. Each

crop year you must report your production

from two crop years ago, e.g., on the 1998

crop year production report, you will provide

your 1996 crop year production.

(c) In addition to the reported production,

each crop year you must report by type:

(1) The number of trees damaged, topped,

hedged, pruned or removed; any change in

practices that may reduce the expected yield

below the yield upon which the insurance

guarantee is based; and the number of

affected acres;

(2) The number of bearing trees on

insurable and uninsurable acreage;

(3) The age of the trees and the planting

pattern; and

(4) For the first year of insurance for

acreage interplanted with another perennial

crop, and anytime the planting pattern of

such acreage is changed:

(i) The age of the interplanted crop, and

type, if applicable;

(ii) The planting pattern; and

(iii) Any other information that we request

in order to establish your approved yield.

We will reduce the yield used to establish

your production guarantee as necessary,

based on our estimate of the effect of the

following: interplanted perennial crop;

removal, topping, hedging, or pruning of

trees; damage; and change in practices on the

yield potential of the insured crop. If you fail

to notify us of any circumstance that may

reduce your yields from previous levels, we

will reduce your production guarantee as

necessary at any time we become aware of

the circumstance.

(d) The yield used to compute your

production guarantee will be determined in

accordance with Actual Production History

(APH) regulations, 7 CFR part 400, subpart G,

and applicable policy provisions unless

previous damage or changes to the grove or

trees require establishment of the yield by

another method. In the event of such damage,

your production guarantee will be

established based on our appraisal of the

yield potential for the insured acreage.

(e) The production guarantee per acre is

progressive by stage and increases at specific
28516 Federal Register / Vol. 61, No. 109 / Wednesday, June 5, 1996 / Proposed Rules

intervals to the final stage production

guarantee. The stages and production

guarantees per acre are:

(1) The first stage extends from the date

insurance attaches through April 30 of the

calendar year of normal bloom. The

production guarantee will be 40 percent of

the yield calculated in paragraph (d) of this

section multiplied by your coverage level.

(2) The second or final stage extends from

May 1 of the calendar year of normal bloom

until the end of the insurance period. The

production guarantee will be the yield

calculated in paragraph (d) of this section

multiplied by your coverage level.

(f) Any acreage of citrus damaged to the

extent that the majority of producers in the

area would not further maintain it will be

deemed to have been destroyed even though

you may continue to maintain it. The

production guarantee for such acreage will be

the guarantee for the stage in which such

damage occurs.

4. Contract Changes

In accordance with Section 4 (Contract

Changes) of the Basic Provisions (§ 457.8),

the contract change date is August 31

preceding the cancellation date.

5. Cancellation and Termination Dates

In accordance with Section 2 (Life of

Policy, Cancellation, and Termination) of the

Basic Provisions (§ 457.8), the cancellation

and termination dates are November 20.

6. Annual Premium

In lieu of the premium computation

method in Section 7 (Annual Premium) of

the Basic Provisions (§ 457.8), the annual

premium amount is computed by

multiplying the second stage production

guarantee per acre by the price election, the

premium rate, the insured acreage, your

share at the time coverage begins, and by any

applicable premium adjustment percentages

contained in the Special Provisions.

7. Insured Crop

In accordance with Section 8 (Insured

Crop) of the Basic Provisions (§ 457.8), the

crop insured will be all the acreage in the

county of each citrus type designated in the

Special Provisions that you elect to insure

and for which a premium rate is provided by

the actuarial table:

(a) In which you have a share;

(b) That are types adapted to the area;

(c) That are irrigated;

(d) That has produced an average yield of

at least three tons per acre the previous year,

unless the trees are inspected by us and we

agree in writing to insure such acreage with

less potential; and

(e) That is grown in a grove that, if

inspected, is considered acceptable by us.

8. Insurable Acreage

In lieu of the provisions in Section 9

(Insurable Acreage) of the Basic Provisions

(§ 457.8), that prohibit insurance attaching to

a crop planted with another crop, citrus

interplanted with another perennial crop is

insurable unless we inspect the acreage and

determine it does not meet the requirements

for insurability contained in these crop

provisions.

9. Insurance Period

(a) In accordance with the provisions of

section 11 (Insurance Period) of the Basic

Provisions (§ 457.8):

(1) Coverage begins on November 21 of

each crop year except that, for the first crop

year, if the application is accepted by us after

November 20, insurance will attach on the

10th day after the application is received in

your insurance provider’s local office.

(2) The calendar date for the end of the

insurance period for each crop year is May

31.

(b) In addition to the provisions of Section

11 (Insurance Period) of the Basic Provisions

(§ 457.8):

(1) If you acquire an insurable share in any

insurable acreage after coverage begins, but

on or before the acreage reporting date for the

crop year, and after any inspection we

consider the acreage acceptable, insurance

will be considered to have attached to such

acreage on the calendar date for the

beginning of the insurance period.

(2) If you relinquish your insurable share

on any insurable acreage of citrus on or

before the acreage reporting date for the crop

year, insurance will not be considered to

have attached to such acreage for that crop

year unless;

(i) A transfer of coverage and right to an

indemnity, or a similar form approved by us

is completed by all affected parties; and

(ii) We are notified by you or the transferee

in writing of such transfer on or before the

acreage reporting date. If you relinquish your

share, no premium will be due and no

indemnity paid unless a transfer of coverage

is properly executed.

10. Causes of Loss

(a) In accordance with the provisions of

Section 12 (Causes of Loss) of the Basic

Provisions (§ 457.8), insurance is provided

only against the following causes of loss that

occur within the insurance period:

(1) Excess rain;

(2) Excess wind;

(3) Fire, unless weeds and other forms of

undergrowth have not been controlled or

pruning debris has not been removed from

the grove;

(4) Freeze;

(5) Hail;

(6) Tornado;

(7) Wildlife; or

(8) Failure of the irrigation water supply,

if caused by an insured peril that occurs

during the insurance period.

(b) In addition to the causes of loss

excluded in Section 12 (Causes of Loss) of

the Basic Provisions (§ 457.8), we will not

insure against damage or loss of production

due to:

(1) Disease or insect infestation, unless a

cause of loss specified in section 10(a):

(i) Prevents the proper application of

control measures or causes properly applied

control measures to be ineffective; or

(ii) Causes disease or insect infestation for

which no effective control mechanism is

available; and

(2) Inability to market the citrus for any

reason other than actual physical damage

from an insurable cause specified in this

section. For example, we will not pay you an

indemnity if you are unable to market due to

quarantine, boycott, or refusal of any person

to accept production.

11. Duties in the Event of Damage or Loss

In addition to the requirements of Section

14 (Duties in the Event of Damage or Loss)

of the Basic Provisions (§ 457.8), you must

notify us at least 15 days before any

production from any unit will be marketed

directly to consumers. We will conduct an

appraisal that will be used to determine your

production to count for direct marketed

production. If damage occurs after this

appraisal, we will conduct an additional

appraisal. These appraisals, and any

acceptable records provided by you, will be

used to determine your production to count.

Failure to give timely notice that production

will be marketed directly to consumers will

result in an appraised amount of production

to count that is not less than the production

guarantee per acre if such failure results in

our inability to make an accurate appraisal.

12. Settlement of Claim

(a) We will determine your loss on a unit

basis. In the event you are unable to provide

production records:

(1) For any optional unit, we will combine

all optional units for which acceptable

production records were not provided; or

(2) For any basic unit, we will allocate any

commingled production to such units in

proportion to our liability on the harvested

acreage for each unit.

(b) In the event of loss or damage covered

by this policy, we will settle your claim on

a unit basis by:

(1) Multiplying the insured acreage for

each type crop by its respective production

guarantee (see sections 1 and 3);

(2) Multiplying each result in section

12(b)(1) by the respective price election for

each type, or variety within a type;

(3) Totaling the results in section 12(b)(2);

(4) Multiplying the total production to be

counted of each type or variety, if applicable,

(see section 12(c)) by the respective price

election;

(5) Totaling the results of section 12(b)(4);

(6) Subtracting the total of section 12(b)(5)

from the total in paragraph (3); and

(7) Multiplying the result of section

12(b)(6) by your share.

(c) The total production to count (in tons)

from all insurable acreage on the unit will

include:

(1) All appraised production as follows:

(i) Not less than the production guarantee

per acre for acreage:

(A) That is abandoned;

(B) Marketed directly to consumers if you

fail to meet the requirements contained in

section 11;

(C) Damaged solely by uninsured causes; or

(D) For which you fail to provide

acceptable production records;

(ii) Production lost due to uninsured

causes;

(iii) Unharvested production; and

(iv) Potential production on insured

acreage you intend to abandon or no longer

care for, if you and we agree on the appraised

amount of production. Upon such agreement,

the insurance period for that acreage will

end. If you do not agree with our appraisal,
Federal Register / Vol. 61, No. 109 / Wednesday, June 5, 1996 / Proposed Rules 28517

we may defer the claim only if you agree to

continue to care for the crop. We will then

make another appraisal when you notify us

of further damage or that harvest is general

in the area unless you harvested the crop, in

which case we will use the harvested

production. If you do not continue to care for

the crop, our appraisal made prior to

deferring the claim will be used to determine

the production to count; and

(2) All harvested production from the

insurable acreage.

(d) Any citrus fruit that is not marketed as

fresh fruit and, due to insurable causes, does

not contain 120 or more gallons of juice per

ton, will be adjusted by:

(1) Dividing the gallons of juice per ton

obtained from the damaged citrus by 120;

and

(2) multiplying the result by the number of

tons of such citrus.

If individual records of juice content are

not available, an average juice content from

the nearest juice plant will be used, if

available. If not available, a field appraisal

will be made to determine the average juice

content.

(e) Where the actuarial table provides for,

and you elect, the fresh fruit option, citrus

fruit that is not marketable as fresh fruit due

to insurable causes will be adjusted by:

(1) Dividing the value per ton of the

damaged citrus by the price of undamaged

citrus fruit; and

(2) Multiplying the result by the number of

tons of such citrus fruit.

The applicable price for undamaged citrus

fruit will be the local market price the week

before damage occurred.

(f) Any production will be considered

marketed or marketable as fresh fruit unless,

due solely to insured causes, such

production was not marketed as fresh fruit.

(g) In the absence of acceptable records of

disposition of harvested citrus fruit, the

disposition and amount of production to

count for the unit will be the guarantee on

the unit.

(h) Any citrus fruit on the ground that is

not harvested will be considered totally lost

if damaged by an insured cause.

13. Written Agreements

Designated terms of this policy may be

altered by written agreement. The following

conditions will apply:

(a) You must apply in writing for each

written agreement no later than the sales

closing date, except as provided in paragraph

(e) of this section.

(b) The application for written agreement

must contain all terms of the contract

between you and us that will be in effect if

the written agreement is not approved.

(c) If approved, the written agreement will

include all variable terms of the contract,

including, but not limited to, crop type or

variety, the guarantee, premium rate, and

price election.

(d) Each written agreement will only be

valid for 1 year. If the written agreement is

not specifically renewed the following year,

insurance coverage for subsequent crop years

will be in accordance with the printed

policy.

(e) An application for written agreement

submitted after the sales closing date may be

approved if, after a physical inspection of the

acreage, it is determined that no loss has

occurred and the crop is insurable in

accordance with the policy and written

agreement provisions.

Signed in Washington, D.C., on May 23,

1996.

Kenneth D. Ackerman,

Manager, Federal Crop Insurance

Corporation.

[FR Doc. 96–13590 Filed 6–4–96; 8:45 am]

BILLING CODE 3410–FA–P

DEPARTMENT OF ENERGY

Office of Energy Efficiency and

Renewable Energy

10 CFR Part 430

Energy Conservation Program for

Consumer Products: Public Workshop

on the Rulemaking Priority Setting for

the Appliance Standards Rulemaking

Process

AGENCY: Office of Energy Efficiency and

Renewable Energy, Department of

Energy.

ACTION: Notice of public workshop.

SUMMARY: The Department of Energy

(the Department or DOE) will hold a

public workshop to discuss rulemaking

priority setting for the appliance

standards rulemaking process. The

Department is developing a straw man

list prioritizing the appliance standards

rulemakings for stakeholder review and

comment. The Department will discuss

issues that should be considered in

determining the rulemaking priority and

the order of priority proposed in the

straw man listing. In addition, there

may be other issues the participants will

want to address. All persons are hereby

given notice of the opportunity to attend

the public workshop.

DATES: The public workshop will be

held on Friday, June 14, 1996, from 9:00

a.m. to 4:30 p.m.

ADDRESSES: The workshop will be held

at the Embassy Row Hotel, 2015

Massachusetts Avenue NW.,

Washington DC 20036, (202) 265–1600.

Copies of the straw man listing of

appliance standards rulemakings and

this notice may be viewed at the DOE

Freedom of Information Reading Room,

Forrestal Building, Room 1E–190, 1000

Independence Avenue SW.,

Washington, DC 20585, (202) 586–6020

between the hours of 9 a.m. and 4 p.m.

Monday through Friday, except Federal

holidays.

FOR FURTHER INFORMATION CONTACT:

Bryan Berringer, U.S. Department of

Energy, Office of Energy Efficiency

and Renewable Energy, Forrestal

Building, Mail Station EE–43, 1000

Independence Avenue SW.,

Washington, DC 20585–0121, (202)

586–0371

Douglas W. Smith, U.S. Department of

Energy, Office of General Counsel,

Forrestal Building, Mail Station GC–

70, 1000 Independence Avenue SW.,

Washington, DC 20585–0103, (202)

586–3410

Deborah E. Miller, U.S. Department of

Energy, Office of Energy Efficiency

and Renewable Energy, Forrestal

Building, Mail Station EE–1, 1000

Independence Avenue SW.,

Washington, DC 20585–0121, (202)

586–8888.

SUPPLEMENTARY INFORMATION: The

Department has initiated a

comprehensive process improvement

effort to examine, through a series of

stakeholder meetings and interviews,

issues surrounding the appliance

standards program. A workshop was

held on March 19–20, 1996, to discuss

the initial findings from these meetings

and interviews. Discussion topics

included the planning and prioritization

process, data collection and analysis,

and decision making criteria. A

preliminary draft report of the ‘‘Interim

Results of the Appliance Rulemaking

Process Improvement Effort’’ dated

April 26, 1996, was circulated for

review.

Based on the criteria discussed in the

March workshop and addressed in the

preliminary draft report, the Department

has developed a straw man list

prioritizing the appliance standards

rulemakings for stakeholder review and

comment.

The Department will be holding a

workshop on June 14, 1996, at the

Embassy Row Hotel in Washington D.C.

to discuss issues that should be

considered in determining the

rulemaking priority and the order of

priority proposed in the straw man

listing. The finalized priority listing will

be published in the Department’s

Regulatory Agenda which will be issued

in October 1996.

The workshop will be professionally

facilitated to encourage discussion and

comments on the topics.

Copies of the straw man listing and

this notice are available in the DOE

Freedom of Information Reading Room.

A copy of the workshop transcript will

be available in the DOE public reading

room approximately 10 days after the

workshop.

The straw man listing will be sent to

all participants that notify the

Department in advance that they will

attend and to other interested parties