35102 Federal Register / Vol. 61, No. 130 / Friday, July 5, 1996 / Rules and Regulations

(4) Make a financial contribution to a

political party, partisan political group,

or to the campaign committee of a

candidate for partisan political office.

(b) Subject to the provisions in

§ 734.406, an employee covered under

this subpart may make a financial

contribution to a political action

committee through a voluntary

allotment made under § 550.311(b) of

this chapter if the head of the

employee’s agency permits agency

employees to make such allotments to

political action committees.

(c) An employee who is covered

under this subpart and is a payroll

official in an agency where employees

are permitted to make allotments to

political action committees may process

the completed direct deposit forms for

voluntary allotments which have been

made to such committees under

§ 550.311(b) of this chapter.

Example 1: An employee, or a noncareer

SES employee who is subject to subpart D of

part 734, may attend a political convention

or rally solely as a spectator. However, the

employee and noncareer SES employee may

not participate in demonstrations or parades

which are sponsored by a political party, a

partisan political group, or an individual

who is running for nomination to be a

candidate for partisan political office.

Example 2: An employee may attend a

political party’s annual barbecue, but he or

she may not organize, distribute invitations

to, or sell tickets to the barbecue.

Example 3: An employee who desires to

contribute to a political action committee

through an allotment personally may obtain

blank direct deposit forms from his or her

payroll office. The employee may not

complete the direct deposit form while he or

she is on duty, on Federal property, or in a

Federally owned or leased vehicle. The

employee also may not personally deliver his

or her completed direct deposit form, or the

completed direct deposit form of another

employee, to his or her payroll office.

However, the employee may mail the

completed form to his or her agency payroll

office.

14. In § 734.406, Examples 1 through

8 are added to read as follows:

§ 734.406 Participation in political

activities while on duty, in uniform, in any

room or building occupied in the discharge

of official duties, or using a Federal vehicle;

prohibition.

* * * * *

Example 1: An employee who uses his or

her privately owned vehicle on a recurrent

basis for official business may place a

bumper sticker on the vehicle, as long as he

or she covers the bumper sticker while the

vehicle is being used for official duties.

Example 2: An employee who uses his or

her privately owned vehicle on official

business, must cover any partisan political

bumper sticker while the vehicle is being

used for official duties, if the vehicle is

clearly identified as being on official

business.

Example 3: An employee or career SES

employee who uses his or her privately

owned vehicle only on an occasional basis to

drive to another Federal agency for a

meeting, or to take a training course, if not

required to cover a partisan political bumper

sticker on his or her vehicle.

Example 4: An employee may not place a

partisan political bumper sticker on any

Government owned or Government leased

vehicle.

Example 5: An employee may place a

bumper sticker on his or her privately owned

vehicle and park the vehicle in a parking lot

of an agency or instrumentality of the United

States Government or in a non-Federal

facility for which the employee receives a

subsidy from his or her employing agency or

instrumentality.

Example 6: An employee, or noncareer SES

employee who is subject to subpart D of this

part 734, may not wear partisan political

buttons or display partisan political pictures,

signs, stickers, or badges while he or she is

on duty or at his or her place of work.

Example 7: An employee who contributes

financially to a political action committee

through a voluntary allotment made under

§ 550.311(b) of this title may not complete

the direct deposit forms while he or she is

on duty, in a ‘‘room or building’’ defined in

§ 734.101, or in a Federally owned or leased

vehicle.

Example 8: An employee who contributes

financially to a political action committee

may not personally deliver his or her

completed direct deposit form, or the

completed direct deposit form of another

employee, to the payroll employees who

would process or administer such forms.

However, the employee may mail his or her

direct deposit form to his or her agency

payroll office.

15. Section 734.408 is revised to read

as follows:

§ 734.408 Participation in political

management and political campaigning;

prohibitions.

An employee covered under this

subpart may not take an active part in

political management or in a political

campaign, except as permitted by

subpart D of this part.

16. In § 734.412, paragraphs (a), (b),

and (c) are revised to read as follows:

§ 734.412 Participation in elections;

prohibitions.

(a) Be a candidate for partisan

political office;

(b) Act as recorder, watcher,

challenger, or similar officer at polling

places in concert with a political party,

partisan political group, or a candidate

for partisan political office;

(c) Drive voters to polling places in

concert with a political party, partisan

political group, or a candidate for

partisan political office;

17. In § 734.502 paragraph (d) is

revised to read as follows:

§ 734.502 Participation in political activity

while on duty, in uniform, in any room or

building occupied in the discharge of

official duties, or using a Federal vehicle.

* * * * *

(d) An employee, to whom subpart E

of this part does not apply, who is not

on duty may participate in political

activities in rooms of the White House

or the Residence of the Vice President

which are part of the Residence area or

which are not regularly used solely in

the discharge of official duties.

* * * * *

18. Section 734.504 is added to read

as follows:

* * * * *

§ 734.504 Contributions to political action

committees through voluntary payroll

allotments prohibited.

An employee described in

§ 734.502(a) may not financially

contribute to a political action

committee through a voluntary

allotment made under § 550.311(b) of

this title.

[FR Doc. 96–17006 Filed 7–3–96; 8:45 am]

BILLING CODE 6325–01–M

DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection

Service

7 CFR Part 301

[Docket No. 96–016–7]

Karnal Bunt; Compensation

AGENCY: Animal and Plant Health

Inspection Service, USDA.

ACTION: Interim rule and request for

comments.

SUMMARY: We are amending the

regulations to provide compensation for

certain growers and handlers, owners of

grain storage facilities, and flour millers

in order to mitigate losses and expenses

incurred because of Karnal bunt. The

payment of compensation is necessary

in order to reduce the economic impact

of the Karnal bunt quarantine on

affected wheat growers and other

individuals, and to help obtain

cooperation from affected individuals in

Karnal bunt eradication efforts.

DATES: Interim rule effective June 27,

1996. Consideration will be given only

to comments received on or before

September 3, 1996.

ADDRESSES: Please send an original and

three copies of your comments to

Docket No. 96–016–7, Regulatory

Analysis and Development, PPD,

APHIS, suite 3C03, 4700 River Road
Federal Register / Vol. 61, No. 130 / Friday, July 5, 1996 / Rules and Regulations 35103

Unit 118, Riverdale, MD 20737–1238.

Please state that your comments refer to

Docket No. 96–016–7. Comments

received may be inspected at USDA,

room 1141, South Building, 14th Street

and Independence Avenue SW.,

Washington, DC, between 8 a.m. and

4:30 p.m., Monday through Friday,

except holidays. Persons wishing to

inspect comments are requested to call

ahead on (202) 690–2817 to facilitate

entry into the comment reading room.

FOR FURTHER INFORMATION CONTACT: Mr.

Mike Stefan, Operations Officer,

Domestic and Emergency Operations,

PPQ, APHIS, 4700 River Road Unit 134,

Riverdale, MD 20737–1236, (301) 734–

8247.

SUPPLEMENTARY INFORMATION:

Background

Karnal bunt is a serious fungal disease

of wheat (Triticum aestivum), durum

wheat (Triticum durum), and triticale

(Triticum aestivum X Secale cereale), a

hybrid of wheat and rye. Karnal bunt is

caused by the smut fungus Tilletia

indica (Mitra) Mundkur and is spread

by spores. The spores can be carried on

a variety of surfaces, including plants

and plant parts, seeds, soil, elevators,

buildings, farm equipment, tools, and

even vehicles. Spores and the sporidia

they produce also can be windborne.

Although the sporidia are fragile and

may be able to move only short

distances, Teliospores are thought to

move longer distances.

Karnal bunt is a serious disease that

can affect both yield and grain quality

when present at levels over 3 to 5

percent. It adversely affects the color,

odor, and palatability of flour and other

foodstuffs made from heavily infested

wheat. Wheat containing a significant

amount of bunted kernels is reduced in

quality. Karnal bunt does not present a

risk to human or animal health.

On March 8, 1996, Karnal bunt was

detected in Arizona during a seed

certification inspection done by the

Arizona Department of Agriculture. On

March 20, 1996, the Secretary of

Agriculture signed a ‘‘Declaration of

Extraordinary Emergency’’ authorizing

the Secretary to take emergency action

under 7 U.S.C. 150dd with regard to

Karnal bunt within the States of

Arizona, New Mexico, and Texas. In an

interim rule effective on March 25,

1996, and published in the Federal

Register on March 28, 1996 (61 FR

13649–13655, Docket No. 96–016–3),

the Animal and Plant Health Inspection

Service (APHIS) established the Karnal

bunt regulations (7 CFR 301.89–1

through 301.89–11), and quarantined all

of Arizona and portions of New Mexico

and Texas because of Karnal bunt. The

regulations define regulated articles and

restrict the interstate movement of these

regulated articles from the quarantined

areas.

After the establishment of the

regulations, Karnal bunt was detected in

lots of seed that were either planted or

stored in certain areas in California. On

April 12, 1996, the Secretary of

Agriculture signed a ‘‘Declaration of

Extraordinary Emergency’’ authorizing

the Secretary to take emergency action

under 7 U.S.C. 150dd with regard to

Karnal bunt within California. In an

interim rule effective on April 19, 1996,

and published in the Federal Register

on April 25, 1996, APHIS also

quarantined portions of California

because of Karnal bunt (61 FR 18233–

18235, Docket No. 96–016–5).

Under an extraordinary emergency,

the Secretary is authorized, but not

obligated, to compensate growers and

other persons for economic losses

incurred by them as a result of the

quarantine or emergency action. This

interim rule amends the Karnal bunt

regulations to provide compensation for

certain growers and handlers, owners of

grain storage facilities, and flour millers

in order to mitigate losses and expenses

incurred because of actions taken by the

Department regarding Karnal bunt. We

are adding a new § 301.89–12 that lists

classes of individuals who are eligible to

receive compensation for actions taken

or losses experienced because of actions

taken by the Department regarding

Karnal bunt. This section also sets forth

the rates of compensation and explains

how to make a claim for compensation,

including what forms need to be filed

and what documents need to be

provided by the claimant to the United

States Department of Agriculture

(USDA).

Compensation for Destroyed Crops in

New Mexico and Texas

Approximately 4,000 acres of planted

wheat in New Mexico and Texas were

traced back to seed produced in Arizona

and known to be contaminated with

Karnal bunt. Under an extraordinary

emergency, the Secretary of Agriculture

has the authority to order the

destruction of crops (see 7 U.S.C.

150dd(b)). On April 1, 1996, the

Secretary signed a memorandum

authorizing APHIS to issue orders for

the destruction by plowing of all wheat

crops in New Mexico and Texas that

were planted with seed known to be

contaminated with Karnal bunt.

Destruction of these crops was

determined to be beneficial in

preventing the spread of Karnal bunt

because the crops in New Mexico and

Texas were at an early stage of growth,

before Karnal bunt infection of the

current crop could occur.

The vehicle for issuing destruction

orders is an Emergency Action

Notification (PPQ Form 523) given by an

APHIS inspector to the owner of the

wheat crop that is to be destroyed.

Pursuant to the Secretary’s

authorization, APHIS began issuing

Emergency Action Notifications for the

destruction of contaminated wheat

fields in New Mexico and Texas on

April 1, 1996.

Consequently, we are listing as

eligible for compensation growers in

New Mexico and Texas who have

destroyed crops of wheat pursuant to an

Emergency Action Notification (PPQ

Form 523) issued by an inspector.

Compensation for these individuals has

been set at the rate of $300 per acre of

destroyed crop. The rate of $300 per

acre includes a payment of $275 per

acre compensation for expenses

incurred by the owner of the wheat crop

in planting and cultivating the

contaminated wheat (this is based on

the average cost of expenses such as

seed, fertilizer, irrigation, and employee

expenses) plus $25 per acre to pay for

crop destruction and soil preparation for

replanting the plowed acres with a new

crop.

To receive compensation, the growers

must complete and submit to an

inspector whichever of the following

three forms are applicable, as

determined by the inspector: ASCS

Form 574, ASCS Form 578, and FCI

Form 73. The forms will be furnished by

USDA. ASCS Form 574 is a form used

to request acreage or disaster credit, and

will document a record of management

practices for the crop and the reason for

its destruction. ASCS Form 578 is a

form used to document a farmer’s total

acreage and how the farmer uses that

acreage. Most affected farmers will

already have a copy of ASCS Form 578

on file with the USDA in connection

with their enrollment in federal crop

insurance or other USDA programs, but

will have to revise this form to reflect

that the crop on some or all of the

acreage listed on the form has been

ordered destroyed by an inspector

because of Karnal bunt. FCI Form 73

will be used to certify the number of

destroyed acres of wheat and the reason

for their destruction.

Compensation for Lost Value of Wheat

in the Quarantined Area

Most other wheat grown in the

quarantined areas, especially in the

quarantined areas outside of New

Mexico and Texas, was past the early

stage of growth at which plowing the
35104 Federal Register / Vol. 61, No. 130 / Friday, July 5, 1996 / Rules and Regulations

crop under would prevent infection of

the current crop with Karnal bunt.

Much of the wheat grown in the

quarantined area is under contract with

millers or grain handlers for processing

or for use as seed. Under the Karnal

bunt regulations, growers and handlers

in the quarantined area are restricted

from selling wheat for propagative

purposes (seed) and from moving wheat

outside of the quarantined area. This

means that, in most cases, growers and

handlers in the quarantined area cannot

move their wheat to the market for

which it was contracted.

Growers and handlers may export

their wheat to another country or may

market the wheat within the

quarantined area, where it will most

likely be processed as animal feed. The

value for wheat to be used as animal

feed is typically lower than the value for

wheat used for propagative purposes or

for use in products for human

consumption. Further, many growers

and handlers are finding it difficult to

market wheat from the quarantined area,

whether or not it has tested positive for

Karnal bunt infection, because wheat

from the quarantined area may incur

additional costs for handling and

treatment. This may force some growers

and handlers to accept a lower price for

their wheat than they would have

received if the area had not been

quarantined for Karnal bunt.

Therefore, we are listing as eligible for

compensation growers and handlers of

wheat grown in the quarantined area for

the loss in value of their wheat due to

the quarantine for Karnal bunt. We will

compensate for the loss in value of

wheat testing negative and wheat testing

positive from the quarantined area.

Compensation calculations will be

different depending on the purpose for

which the wheat was grown and the

purpose for which the wheat is

eventually sold. Compensation

calculations will also be different for

growers and for handlers.

This rule only includes calculations

for compensation of wheat grown for

nonpropagative purposes (meaning it

was not grown for use as seed). We do

intend to compensate seed producers for

the loss in value of their seed. However,

we are still developing protocols for

seed movement and disposition, and

those protocols will affect how that

compensation will be calculated. A rule

providing for compensation for seed

producers will be published at a later

date. The calculations for

nonpropagative wheat compensation are

discussed below.

Growers of Nonpropagative Wheat

For growers of wheat grown under

contract for nonpropagative purposes in

the quarantined area, the amount of

compensation will be based on the

difference between the contracted price

and the salvage value (described below).

Salvage value for wheat grown under

contract will be as follows:

If the contracted wheat is tested by

APHIS and found positive for Karnal

bunt, and the positive wheat is sold for

use as animal feed, salvage value equals

$6 per hundred weight or $3.60 per

bushel for all classes of wheat. This

value is based on the feeding value of

wheat relative to other feed grains, in

addition to considering the costs of

required treatment of positive wheat for

use in livestock feed and the costs of

transporting wheat to processing centers

and to feeding locations. If the positive

wheat is sold for uses other than animal

feed (e.g., milling or export), salvage

value equals whichever price is higher

of the following: the average price paid

in the region of the quarantined area

where the wheat is sold for the relevant

class of wheat for the period between

May 1 and June 30, 1996; or, $3.60 per

bushel. (Relevant class of wheat means

the type of wheat, for example, Durum

or Hard red winter wheat. Because these

classes of wheat are suitable for

different products, they command

different market prices.) If contracted

wheat is tested by APHIS and found

negative for Karnal bunt, regardless of

the eventual use of the wheat, salvage

value equals the same as for positive

contracted wheat sold for uses other

than animal feed.

For growers of nonpropagative wheat

not grown under contract, compensation

will be based on the difference between

the estimated market price for the

relevant class of wheat and the salvage

value. Salvage values will be the same

as described above for contracted wheat.

The estimated market price is intended

to represent what the market price

would have been if there were no

quarantine for Karnal bunt, and will be

calculated by APHIS for each class of

wheat, taking into account the prices

offered by relevant terminal markets

(animal feed, milling, or export) for the

period between May 1 and June 30,

1996, with adjustments for

transportation and other handling costs.

For nonpropagative wheat, whether

grown under contract or not, whether

positive or negative, compensation will

not exceed $2.50 per bushel.

To receive compensation, the grower

must complete and submit to an

inspector whichever of the following

three forms are applicable, as

determined by the inspector: ASCS

Form 574, ASCS Form 578, and FCI

Form 73. These are the same forms

described above for claims for destroyed

crops, and will be furnished by USDA.

In addition, the grower must submit a

copy of the contract the grower has for

the wheat, if the wheat was under

contract, and a copy of the receipt for

the final sale of the wheat, showing the

intended use for which the wheat was

sold.

Handlers of Nonpropagative Wheat

There are two circumstances under

which handlers will be eligible for

compensation: (1) Handlers who honor

contracts by paying the grower full

contract price on wheat grown for

nonpropagative purposes in the

quarantined area that was tested by

APHIS and found positive for Karnal

bunt; and (2) handlers who purchase

contracted or noncontracted wheat

grown for nonpropagative purposes in

the quarantined area that was tested by

APHIS and found negative for Karnal

bunt prior to purchase, but which is

tested by APHIS and found positive for

Karnal bunt after purchase. The amount

of compensation for both these

circumstances will be based on the

difference between the estimated market

price (as described previously in this

document) and the salvage value.

Salvage value will be the same as for

grower compensation (described

previously in this document). However,

compensation will not exceed $2.50 per

bushel under any circumstances.

The calculations described above do

not provide for compensation for

handlers who purchase positive wheat

not grown under contract, or who

purchase negative wheat that does not

later test positive. Handlers who

purchase positive wheat not grown

under contract, or for less than contract

price, will likely pay a very low price

for the wheat, so that compensation for

loss in value will not be necessary.

Handlers who purchase negative wheat

that continues to test negative after

purchase will likewise not experience a

loss in value for the wheat compared to

the price they paid for it. Handlers who

purchase negative wheat that later tests

positive would, however, experience a

loss in expected value because positive

wheat is worth less than negative wheat.

To receive compensation, the handler

must complete and submit to an

inspector whichever of the following

three forms are applicable, as

determined by the inspector: ASCS

Form 574, ASCS Form 578, and FCI

Form 73. The forms will be furnished by

USDA. In addition, the handler must

submit a copy of the contract the
Federal Register / Vol. 61, No. 130 / Friday, July 5, 1996 / Rules and Regulations 35105

handler had with the grower for the

wheat, if the wheat was under contract,

to verify that the contract was honored.

If the wheat was not purchased under

contract, the handler must submit a

copy of the receipt for the final sale of

the wheat, showing the intended use for

which the wheat was sold.

If a grower or handler of

nonpropagative wheat in the

quarantined area is not able to or elects

not to sell their wheat, they will be

eligible to receive compensation at the

rate of $2.50 per bushel. However,

compensation will only be paid if the

grower or handler has destroyed the

wheat by burying it in a sanitary

landfill. To receive compensation, the

grower or handler must complete and

submit to an inspector whichever of the

following three forms are applicable, as

determined by an inspector: ASCS Form

574, ASCS Form 578, and FCI Form 73.

The forms will be furnished by USDA.

The grower or handler must also submit

a receipt from a sanitary landfill

verifying how much wheat was buried.

Compensation for Decontamination of

Grain Storage Facilities

Owners of grain storage facilities that

have been decontaminated pursuant to

an Emergency Action Notification (PPQ

Form 523) issued by an inspector are

eligible for compensation. These grain

storage facilities have been determined

by APHIS to be contaminated with

Karnal bunt. We estimate that the cost

of decontamination, which consists of

treatment with a chlorine solution and

water, detergent and water, steam, or

fumigation with methyl bromide in

accordance with § 301.89–11 of the

regulations, can range between $30,000

to $50,000 per facility.

We will compensate owners of

contaminated grain storage facilities on

a one time only basis for up to 50

percent of the cost of decontamination.

However, compensation will not exceed

$20,000 per premise. We will add a

definition for ‘‘premise’’ to § 301.89–1 to

mean ‘‘all structures, conveyances, or

materials associated with a grain storage

facility at a single location.’’

Compensation is limited to the direct

costs of decontaminating facilities.

General clean-up, repair, and

refurbishment costs are excluded from

compensation.

To receive compensation, owners of

grain storage facilities must submit to

the inspector records demonstrating that

decontamination was performed on all

structures, conveyances, or materials

ordered to be decontaminated by the

Emergency Action Notification on the

facility premise. The records must

include a copy of the Emergency Action

Notification, contracts with individuals

or companies hired to perform the

decontamination, receipts for

equipment and materials purchased to

perform the decontamination, time

sheets for employees of the grain storage

facility who perform actions related to

the decontamination, and any other

documentation that helps show

decontamination has been completed

and its cost.

Compensation for Treating Millfeed

In accordance with compliance

agreements established between APHIS

and flour millers located in high-risk

areas (areas where there is a high risk of

spreading Karnal bunt into surrounding

areas), millfeed (a byproduct of milling

wheat into flour) produced from wheat

from the quarantined area must be

treated using a heat process. This

treatment adds approximately $35 per

short ton to the cost of producing

millfeed products, such as animal feed.

It is unlikely that millers would

purchase wheat from the quarantined

area without compensation for the cost

of millfeed treatment. Loss of these

markets would further lower the value

of wheat in the quarantined area.

Flour millers who heat-treat millfeed

made from wheat produced in the

quarantined area are eligible to receive

compensation at the rate of $35.00 per

short ton of millfeed. The amount of

millfeed compensated will be calculated

by multiplying the weight of wheat that

is milled from the quarantined area by

25 percent (the average percent of

millfeed derived from a short ton of

grain). We will calculate the amount of

millfeed to be compensated in this

manner because many millers routinely

mix together different types of wheat

from different areas. The resulting

millfeed would be a product of wheat

from quarantined and nonquarantined

areas. However, we will only

compensate for the cost of treating

millfeed made from wheat produced in

the quarantined area. Therefore, the

amount compensated cannot be

determined by simply weighing the total

amount of millfeed at the end of the

milling process.

To claim compensation, flour millers

must submit to an inspector a copy of

the limited permit under which the

wheat was moved to the mill, in order

to show that the wheat was produced in

a quarantined area, and a copy of the

bill of lading for the wheat, showing the

weight of the wheat in short tons. Flour

millers must also submit verification

that the millfeed produced from wheat

from the quarantined area was properly

heat treated.

We believe the compensations

described above will help ensure

cooperation from affected individuals in

APHIS’ efforts to eliminate the spread of

Karnal bunt and will help mitigate the

economic impact of the Karnal bunt

quarantine and emergency actions on

affected wheat growers and others

within the industry.

Miscellaneous

We are also making a miscellaneous

change to the Karnal bunt regulations.

Section 301.89–2(d) lists plants and

plant parts of the species Triticum

aestivum X Seale cereals as regulated

articles. However, the correct scientific

name for this species is Triticum

aestivum X Secale cereale. We are

amending § 301.89–2(d) to correct this

error.

Emergency Action

In accordance with 7 U.S.C.

150dd(b)(2), the amount of

compensation, if any, which the

Secretary determines may be paid to

individuals for economic losses

incurred because of the declaration of

an extraordinary emergency shall be

final.

The Administrator of the Animal and

Plant Health Inspection Service has

determined that an emergency exists

that warrants publication of this interim

rule without prior opportunity for

public comment. Immediate action is

necessary to provide compensation for

those persons who were and are

required to take emergency actions to

eliminate the spread of Karnal bunt or

who experience economic losses

because of the quarantine for Karnal

bunt.

Because prior notice and other public

procedures with respect to this action

are impracticable and contrary to the

public interest under these conditions,

we find good cause under 5 U.S.C. 553

to make it effective upon signature. We

will consider comments that are

received within 60 days of publication

of this rule in the Federal Register.

After the comment period closes, we

will publish another document in the

Federal Register. It will include a

discussion of any comments we receive

and any amendments we are making to

the rule as a result of the comments.

Executive Order 12866 and Regulatory

Flexibility Act

This rule has been reviewed under

Executive Order 12866. For this action,

the Office of Management and Budget

has waived its review process required

by Executive Order 12866.

This action amends the regulations to

provide compensation for certain
35106 Federal Register / Vol. 61, No. 130 / Friday, July 5, 1996 / Rules and Regulations

growers and handlers, owners of grain

storage facilities, and flour millers in

order to mitigate losses and expenses

incurred because of the Karnal bunt

quarantine and emergency actions. This

emergency situation makes compliance

with section 603 and timely compliance

with section 604 of the Regulatory

Flexibility Act (5 U.S.C. 603 and 604)

impracticable. This rule may have a

significant economic impact on a

substantial number of small entities. If

we determine this is so, then we will

discuss the issues raised by section 604

of the Regulatory Flexibility Act in our

Final Regulatory Flexibility Analysis.

Executive Order 12372

This program/activity is listed in the

Catalog of Federal Domestic Assistance

under No. 10.025 and is subject to

Executive Order 12372, which requires

intergovernmental consultation with

State and local officials. (See 7 CFR part

3015, subpart V.)

Executive Order 12778

This rule has been reviewed under

Executive Order 12778, Civil Justice

Reform. This rule: (1) Preempts all State

and local laws and regulations that are

inconsistent with this rule; (2) has no

retroactive effect; and (3) does not

require administrative proceedings

before parties may file suit in court

challenging this rule.

Paperwork Reduction Act

In accordance with section 3507(d) of

the Paperwork Reduction Act of 1995

(44 U.S.C. 3501 et seq.), the information

collection or recordkeeping

requirements included in this interim

rule have been approved by the Office

of Management and Budget (OMB). The

assigned OMB control numbers are as

follows: for PPQ Form 523 the number

is 0579–0121; for ASCS Form 574 the

number is 0563–0003; for ASCS Form

578 the number is 0560–0004; and for

FCI Form 73 the number is 0563–0033.

List of Subjects in 7 CFR Part 301

Agricultural commodities, Plant

diseases and pests, Quarantine,

Reporting and recordkeeping

requirements, Transportation.

Accordingly, 7 CFR part 301 is

amended as follows:

PART 301—DOMESTIC QUARANTINE

NOTICES

1. The authority citation for part 301

continues to read as follows:

Authority: 7 U.S.C 150bb, 150dd, 150ee,

150ff, 161, 162, and 164–167; 7 CFR 2.22,

2.80, and 371.2(c).

§ 301.89–2 [Amended]

2. In § 301.89–1, a definition for

Premise is added in alphabetical order

to read as follows:

§ 301.89–1 Definitions.

* * * * *

Premise. All structures, conveyances,

or materials associated with a grain

storage facility at a single location.

* * * * *

3. In § 301.89–2, in paragraph (d), the

entry for Triticale is amended by

removing the words ‘‘Seale cereals’’ and

adding the words ‘‘Secale cereale’’ in

their place.

4. A new § 301.89–12 is added to read

as follows:

§ 301.89–12 Compensation.

The following individuals are eligible

to receive compensation from the

United States Department of Agriculture

(USDA) for losses or expenses incurred

because of the Karnal bunt quarantine

and emergency actions, as follows:

(a) Growers who have destroyed crops.

Growers in New Mexico and Texas who

have destroyed crops of wheat pursuant

to an Emergency Action Notification

(PPQ Form 523) issued by an inspector

are eligible to be compensated at the

rate of $300 per acre of destroyed crop.

To claim compensation, the grower

must complete and submit to an

inspector whichever of the following

three forms are applicable, as

determined by the inspector: ASCS

Form 574, ASCS Form 578, and FCI

Form 73. The forms will be furnished by

USDA.

(b) Growers and handlers who sell

nonpropagative wheat grown in the

quarantined area. Growers and handlers

who sell nonpropagative wheat grown

in the quarantined area are eligible to be

compensated for the loss in value of

their wheat due to the quarantine for

Karnal bunt, as follows:

(1) Growers who sell nonpropagative

wheat. For growers who sell wheat

grown for nonpropagative purposes,

compensation will be as described in

paragraphs (b)(1)(i) and (b)(1)(ii) of this

section. However, compensation will

not exceed $2.50 per bushel under any

circumstances.

(i) If the wheat was grown under

contract, compensation will equal the

contracted price minus the salvage

value, as described in paragraph (b)(3)

of this section.

(ii) If the wheat was not grown under

contract, compensation will equal the

estimated market price for the relevant

class of wheat (meaning type of wheat,

such as Durum or Hard red winter)

minus the salvage value, as described in

paragraph (b)(3) of this section. The

estimated market price will be

calculated by APHIS for each class of

wheat, taking into account the prices

offered by relevant terminal markets

(animal feed, milling, or export) for the

period between May 1 and June 30,

1996, with adjustments for

transportation and other handling costs.

(2) Handlers who sell nonpropagative

wheat. Handlers are eligible to be

compensated only under the

circumstances described in paragraphs

(b)(2)(i) and (b)(2)(ii) of this section.

Compensation for both circumstances

will equal the estimated market price for

the relevant class of wheat (meaning

type of wheat, such as Durum or Hard

red winter) minus the salvage value, as

described in paragraph (b)(3) of this

section. The estimated market price will

be calculated by APHIS for each class of

wheat, taking into account the prices

offered by relevant terminal markets

(animal feed, milling, or export) for the

period between May 1 and June 30,

1996, with adjustments for

transportation and other handling costs.

However, compensation will not exceed

$2.50 per bushel under any

circumstances.

(i) Handlers who honor contracts by

paying the grower full contract price on

wheat grown for nonpropagative

purposes in the quarantined area that

was tested by APHIS and found positive

for Karnal bunt; or

(ii) Handlers who purchase contracted

or noncontracted wheat grown for

nonpropagative purposes in the

quarantined area that was tested by

APHIS and found negative for Karnal

bunt prior to purchase but that was

tested by APHIS and found positive for

Karnal bunt after purchase.

(3) Salvage value. Salvage values will

be as follows:

(i) If the wheat is positive for Karnal

bunt and is sold for use as animal feed,

salvage value equals $6.00 per

hundredweight or $3.60 per bushel for

all classes of wheat.

(ii) If the wheat is positive for Karnal

bunt and is sold for a use other than

animal feed, salvage value equals

whichever is higher of the following: the

average price paid in the region of the

quarantined area where the wheat is

sold for the relevant class of wheat

(meaning type of wheat, such as Durum

or Hard red winter) for the period

between May 1 and June 30, 1996; or,

$3.60 per bushel.

(iii) If the wheat is negative for Karnal

bunt and is sold for any use, salvage

value equals whichever is higher of the

following: the average price paid in the

region of the quarantined area where the

wheat is sold for the relevant class of

wheat (meaning type of wheat, such as
Federal Register / Vol. 61, No. 130 / Friday, July 5, 1996 / Rules and Regulations 35107

Durum or Hard red winter) for the

period between May 1 and June 30,

1996; or, $3.60 per bushel.

(4) To claim compensation. To claim

compensation, a grower or handler must

complete and submit to an inspector

whichever of the following three forms

are applicable, as determined by the

inspector: ASCS Form 574, ASCS Form

578, and FCI Form 73. The forms will

be furnished by USDA. Growers must

also submit a copy of the contract the

grower has for the wheat, if the wheat

was under contract; handlers must also

submit a copy of the contract the

handler had with the grower for the

wheat, if the wheat was under contract.

Finally, a grower or handler must

submit a copy of the receipt for the final

sale of the wheat, showing the intended

use for which the wheat was sold.

(c) Nonpropagative wheat that is not

sold. If a grower or handler of

nonpropagative wheat in the

quarantined area is not able to or elects

not to sell their wheat, they will be

eligible to receive compensation at the

rate of $2.50 per bushel. Compensation

will only be paid if the grower or

handler has destroyed the wheat by

burying it in a sanitary landfill. To

claim compensation, the grower or

handler must complete and submit to an

inspector whichever of the following

three forms are applicable, as

determined by the inspector: ASCS

Form 574, ASCS From 578, and FCI

Form 73. The forms will be furnished by

USDA. In addition, the grower or

handler must submit a receipt from the

sanitary landfill verifying how much

wheat was buried.

(d) Decontamination of grain storage

facilities. Owners of grain storage

facilities that have been decontaminated

pursuant to an Emergency Action

Notification (PPQ Form 523) issued by

an inspector are eligible to be

compensated, on a one time only basis,

for up to 50 percent of the cost of

decontamination. However,

compensation will not exceed $20,000

per premise (as defined in § 301.89–1).

Compensation is limited to the direct

costs of decontaminating facilities.

General clean-up, repair, and

refurbishment costs are excluded from

compensation. To claim compensation,

the owner of the grain storage facility

must submit to an inspector records

demonstrating that decontamination

was performed on all structures,

conveyances, or materials ordered to be

decontaminated by the Emergency

Action Notification on the facility

premise. The records must include a

copy of the Emergency Action

Notification, contracts with individuals

or companies hired to perform the

decontamination, receipts for

equipment and materials purchased to

perform the decontamination, time

sheets for employees of the grain storage

facility who performed activities

connected to the decontamination, and

any other documentation that helps

show decontamination has been

completed.

(e) Flour millers. Flour millers who, in

accordance with a compliance

agreement with APHIS, heat-treat

millfeed made from wheat produced in

the quarantined area are eligible to be

compensated at the rate of $35.00 per

short ton of millfeed. The amount of

millfeed compensated will be calculated

by multiplying the weight of wheat from

the quarantined area received by the

miller by 25 percent (the average

percent of millfeed derived from a short

ton of grain). To claim compensation,

the miller must submit to an inspector

a copy of the limited permit under

which the wheat was moved to the mill

and a copy of the bill of lading for the

wheat (showing the weight of the wheat

in short tons). Flour millers must also

submit verification that the millfeed was

heat treated, in the form of a copy of the

limited permit under which the wheat

was moved to a treatment facility and a

copy of the bill of lading accompanying

that movement.

Done in Washington, DC, this 27th day of

June 1996.

Terry L. Medley,

Acting Administrator, Animal and Plant

Health Inspection Service.

[FR Doc. 96–16999 Filed 7–3–96; 8:45 am]

BILLING CODE 3410–34–P

7 CFR Part 301

[Docket No. 96–016–6]

Karnal Bunt; Removal of Quarantined

Areas

AGENCY: Animal and Plant Health

Inspection Service, USDA.

ACTION: Interim rule and request for

comments.

SUMMARY: We are amending the Karnal

bunt regulations by removing areas in

Arizona, New Mexico, and Texas from

the list of areas quarantined because of

infestations of Karnal bunt. This action

is necessary to relieve restrictions on the

areas of Arizona, New Mexico, and

Texas that do not produce wheat,

durum wheat, or triticale or that do

produce wheat but we have been able to

determine that they have no association

with Karnal bunt contaminated seed.

The interstate movement of regulated

articles from these areas does not

present a risk of spreading Karnal bunt.

DATES: Interim rule effective June 27,

1996. Consideration will be given only

to comments received on or before

September 3, 1996.

ADDRESSES: Please send an original and

three copies of your comments to

Docket No. 96–016–6, Regulatory

Analysis and Development, PPD,

APHIS, suite 3C03, 4700 River Road

Unit 118, Riverdale MD 20737–1238.

Please state that your comments refer to

Docket No. 96–016–6. Comments

received may be inspected at USDA,

room 1141, South Building, 14th Street

and Independence Avenue SW.,

Washington, DC, between 8 a.m. and

4:30 p.m., Monday through Friday,

except holidays. Persons wishing to

inspect comments are requested to call

ahead on (202) 690–2817 to facilitate

entry into the comment reading room.

FOR FURTHER INFORMATION CONTACT: Mr.

Michael B. Stefan, Operations Officer,

Domestic and Emergency Operations,

PPQ, APHIS, 4700 River Road, Unit 134,

Riverdale, MD 20737–1236, (301) 734–

8247; or e-mail:

mstefan@aphis.usda.gov.

SUPPLEMENTARY INFORMATION:

Background

Karnal bunt is a serious fungal disease

of wheat (Triticum aestivum), durum

wheat (Triticum durum), and triticale

(Triticum aestivum X Seale cereals), a

hybrid of wheat and rye. The disease is

caused by the smut fungus Tilletia

indica (Mitra) Mundkur and is spread

by spores. Karnal bunt is a serious

disease that affects both yield and grain

quality. It adversely affects the color,

odor, and palatability of flour and other

foodstuffs made from affected grain.

Grain containing any amount of bunted

kernels is reduced in quality. Karnal

bunt does not present a risk to human

health.

On March 20, 1996, the Secretary of

Agriculture signed a ‘‘Declaration of

Extraordinary Emergency’’ authorizing

the Secretary to take emergency action

under 7 U.S.C. 150dd with regard to

Karnal bunt within the States of

Arizona, New Mexico, and Texas. The

‘‘Declaration of Extraordinary

Emergency’’ was published in the

Federal Register on March 25, 1996 (61

FR 12058, Docket No. 96–016–1). On

March 26, 1996, the Secretary of

Agriculture signed a ‘‘Declaration of

Emergency’’ authorizing the transfer and

use of funds within the Department for

a program to control Karnal bunt

wherever it may be found in the United

States. The ‘‘Declaration of Emergency’’

was published in the Federal Register

on March 29, 1996 (61 FR 14046, Docket

No. 96–016–2).