Federal Register / Vol. 74, No. 142 / Monday, July 27, 2009 / Proposed Rules 36955 

consumption by humans and all seed 

potatoes imported into the United 

States. An assessment rate of 3 cents per 

hundredweight shall be levied on the 

fresh weight equivalents of imported 

frozen or processed potatoes for 

ultimate consumption by humans. The 

importer of imported tablestock 

potatoes, potato products, or seed 

potatoes shall pay the assessment to the 

board through the U.S. Customs Service 

and Border Protection at the time of 

entry or withdrawal for consumption of 

such potatoes and potato products into 

the United States. 

* * * * * 

(3) * * * 

Tablestock potatoes, 

frozen or processed 

potatoes, and seed 

potatoes 

Assessment 

Cents/cwt Cents/kg 

0701.10.0020 ............ 3 .0 0 .066 

0701.10.0040 ............ 3 .0 0 .066 

0701.90.1000 ............ 3 .0 0 .066 

0701.90.5010 ............ 3 .0 0 .066 

0701.90.5020 ............ 3 .0 0 .066 

0701.90.5030 ............ 3 .0 0 .066 

0701.90.5040 ............ 3 .0 0 .066 

0710.10.0000 ............ 6 .0 0 .132 

2004.10.4000 ............ 6 .0 0 .132 

2004.10.8020 ............ 6 .0 0 .132 

2004.10.8040 ............ 6 .0 0 .132 

2005.20.0070 ............ 4 .716 0 .104 

0712.90.3000 ............ 21 .429 0 .472 

1105.10.0000 ............ 21 .429 0 .472 

1105.20.0000 ............ 21 .429 0 .472 

2005.20.0040 ............ 21 .429 0 .472 

2005.20.0020 ............ 12 .240 0 .27 

1108.13.0010 ............ 27 .0 0 .595 

* * * * * 

Dated: July 21, 2009. 

David R. Shipman, 

Associate Administrator, Agricultural 

Marketing Service. 

[FR Doc. E9–17804 Filed 7–24–09; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 1218 

[Document Number AMS–FV–09–0021; FV– 

09–704] 

Blueberry Promotion, Research, and 

Information Order; Assessment 

Increase 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Proposed rule. 

SUMMARY: This rule proposes to amend 

the Blueberry Promotion, Research, and 

Information Order (Order) to increase 

the assessment rate on producers and 

importers who produce or import more 

than 2,000 pounds of highbush 

blueberries annually from $12 per ton to 

$24 per ton. The increase provided 

under the Order is authorized by the 

Commodity Promotion, Research, and 

Information Act of 1996 (Act). The U.S. 

Highbush Blueberry Council (Council) 

which administers the Order 

recommended this action to expand 

their promotional activities and add an 

advertising component to bridge the 

potential gap between highbush 

blueberry demand and future supply. 

Furthermore, the Council recommended 

to use the additional revenue to 

strengthen existing consumer, food 

service, and food manufacturer 

publicity; to expand their health 

research; to develop an educational 

campaign on good management 

practices and food safety within the 

United States as well as internationally. 

DATES: Comments must be received by 

September 25, 2009. 

ADDRESSES: Interested persons are 

invited to submit written comments on 

the Internet at: http:// 

www.regulations.gov or to the Research 

and Promotion Branch, Fruit and 

Vegetable Programs, Agricultural 

Marketing Service (AMS), U.S. 

Department of Agriculture 

(Department), Room 0632–S, Stop 0244, 

1400 Independence Avenue, SW., 

Washington, DC 20250–0244; facsimile: 

(202) 205–2800. All comments should 

reference the docket number and the 

date and page number of this issue of 

the Federal Register and will be made 

available for public inspection in the 

above office during regular business 

hours or can be viewed at http:// 

www.regulations.gov. All comments 

received will be posted without change, 

including any personal information 

provided. 

FOR FURTHER INFORMATION CONTACT: 

Jeanette Palmer, Marketing Specialist, 

Research and Promotion Branch, Fruit 

and Vegetable Programs, AMS, U.S. 

Department of Agriculture, Stop 0244, 

1400 Independence Avenue, SW., Room 

0632–S, Washington, DC 20250–0244; 

telephone: (888) 720–9917; facsimile: 

(202) 205–2800; or electronic mail: 

Jeanette.Palmer@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This rule 

is issued under the Blueberry 

Promotion, Research, and Information 

Order [7 CFR Part 1218]. The Order is 

authorized under the Commodity 

Promotion, Research, and Information 

Act of 1996 [7 U.S.C. 7401–7425]. 

Executive Order 12866 

The Office of Management and Budget 

(OMB) has waived the review process 

required by Executive Order 12866 for 

this action. 

Executive Order 12988 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. The rule is not intended to have 

retroactive effect and will not affect or 

preempt any other State or Federal law 

authorizing promotion or research 

relating to an agricultural commodity. 

The Act provides that any person 

subject to an order may file a written 

petition with the Department if they 

believe that the order, any provision of 

the order, or any obligation imposed in 

connection with the order, is not 

established in accordance with law. In 

any petition, the person may request a 

modification of the order or an 

exemption from the order. The 

petitioner 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 petitioner resides 

or conducts business shall have the 

jurisdiction to review the Department’s 

ruling on the petition, provided a 

complaint is filed not later than 20 days 

after the date of the entry of the ruling. 

Initial Regulatory Flexibility Act and 

Paperwork Reduction Act 

In accordance with the Regulatory 

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

seq.], the Agricultural Marketing Service 

has considered the economic impact of 

this action on the small producers, first 

handlers, and importers that would be 

affected by this rule. The purpose of the 

RFA is to fit regulatory action to scale 

on businesses subject to such action so 

that small businesses will not be 

disproportionately burdened. 

The Small Business Administration 

defines, in 13 CFR Part 121, small 

agricultural producers as those having 

annual receipts of no more than 

$750,000 and small agricultural service 

firms as those having annual receipts of 

no more than $7 million. There are 

approximately 2,000 producers, 200 first 

handlers, 50 importers, and 4 exporters 

of highbush blueberries subject to the 

program. Most of the producers would 

be classified as small businesses under 

the criteria established by the Small 

Business Administration. Most 

importers, first handlers, and exporters 

would not be classified as small 

businesses. Producers who produce less 

than 2,000 pounds of highbush 

blueberries annually are exempt from 

this program. Importers who import less 

than 2,000 pounds of fresh and frozen 

highbush blueberries annually are also 

exempt from this program. 


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36956 Federal Register / Vol. 74, No. 142 / Monday, July 27, 2009 / Proposed Rules 

Under the current Order, domestic 

producers and importers who produce 

or import more than 2,000 pounds of 

highbush blueberries annually are 

required to pay an assessment to the 

Council. The current assessment rate is 

$12 per ton levied on highbush 

blueberries produced within the 50 

States, the District of Columbia, the 

Commonwealth of Puerto Rico, and the 

territories and possessions of the United 

States and on imports of more than 

2,000 pounds into the United States. 

Assessments under the program are 

used by the Council to finance 

promotion, health research and 

communication programs designed to 

increase consumer demand for highbush 

blueberries in the United States and 

international markets. The assessment 

rate of $12 per ton which became 

effective on August 16, 2000, generates 

approximately $2.4 million in annual 

revenues. The Order is administered by 

the Council with oversight by the 

Department. 

The Council has made projections of 

funds generated at the current $12 per 

ton on forecasted highbush blueberry 

production increases. Based on these 

projections, the Council has calculated 

that the domestic market promotion 

budget would not increase sufficiently 

in the next few years to accomplish the 

Council’s expanded market promotion 

goal of adding a meaningful advertising 

campaign to the highbush blueberry 

industry. The funds are distributed as 

follows: a 15 percent allocation to 

administration and general expenses; a 

20 percent allocation to research; and a 

65 percent allocation to market 

promotion. 

Currently, the Council and the North 

American Blueberry Council (NABC) 

share office space which is a cost 

effective measure for both organizations 

which allows the Council to keep 

administration and general expenses 

within 15 percent or less of the budget. 

The NABC signed a lease for new office 

space and NABC and the Council will 

relocate in June 2009. As a result, the 

Council will save an estimated $8,715 

on rental fees annually. The Council has 

also changed meeting locations to less 

expensive places in order to cut costs. 

For example, the Council is currently 

considering whether to keep future 

meetings at airport hub locations such 

as Atlanta, Georgia. Even with such 

cost-cutting measures, the Council still 

requires additional revenue to maintain 

and expand its promotional and 

research activities. 

The Council believes that additional 

revenue is required to aggressively 

promote the consumption of a growing 

supply of highbush blueberries, expand 

health research and marketing among 

consumers and industrial users within 

the United States and international 

countries, and increase educational 

effort in the areas of good management 

practices and food safety. The Council 

approved the proposed assessment rate 

of $24 per ton at its February 28, 2009, 

meeting. This proposed increase is 

consistent with section 517 (d) of the 

Act that permits changes in the 

assessment rate through notice and 

comment rulemaking procedures. 

Section 1218.52 (c) of the Order states 

that assessments are to be levied at a 

rate of $12 per ton on all highbush 

blueberries. The assessment rate may be 

reviewed and modified with the 

approval of the Secretary of Agriculture 

(Secretary). 

The Council made this 

recommendation in light of projected 

2008 highbush blueberry production 

totals that continue to set historic 

production levels. The Council stated 

that successive large highbush blueberry 

crops have led to increased inventory 

levels and a weakening of the market. 

Using data from the NABC’s Blueberry 

Statistical Record, in 2007, the North 

American highbush blueberry industry 

produced 356 million pounds of 

highbush blueberries, an increase of 16 

million pounds over the previous record 

of 340 million pounds produced in 

2006. Based on most recent estimates 

from the NABC Blueberry Statistical 

Record, the 2008 highbush blueberry 

crop has once again surpassed records 

and totaled an estimated 407 million 

pounds. 

The North American highbush 

blueberry production has increased 

more than five fold over the past 40 

years from 70 million pounds in 1968 to 

the estimated 407 million pounds 

produced in 2008 and more than twice 

the level produced ten years ago of 185 

million pounds in 1998. Domestic 

projections continue to show a growing 

supply of highbush blueberries in the 

years to come based upon the amount of 

new plantings as well as the recent 

enhancement of existing fields that are 

gradually being replaced with higher 

yielding varieties, or are benefiting from 

improved farming practices. 

Based on the Council’s World 

Blueberry Acreage and Production 

Report, highbush blueberry acreage in 

North America increased from 71,075 

acres in 2005 to an estimated 95,607 

acres in 2008, a 35 percent increase in 

just three years. The United States share 

of this total increased from 56,665 acres 

in 2005 to 74,992 acres in 2008, a 32 

percent increase. Most of this acreage 

growth is coming from the higher 

yielding western and southern states. 

Highbush blueberry production volume 

is expected to increase significantly 

from these regions in the coming years. 

Since the domestic market production 

for highbush blueberries is increasing, 

the Council recommends expanding 

their promotional activities by 

strengthening their existing consumer, 

food service, and food manufacturer 

publicity and export market promotion 

programs to keep highbush blueberry 

demand ahead of supply. 

In 2008, the United States exported 

13,791 metric tons of fresh highbush 

blueberries worth over $69 million. 

Canada is the principal destination for 

United States exports–accounting for 

nearly 84 percent of the total in 2008. 

Other key markets included the United 

Kingdom at 7 percent and Japan at 6 

percent of the total. The remaining 3 

percent of the United States exports 

were sent mostly to Asian countries. 

The United States exports of frozen 

highbush blueberries totaled 5,785 

metric tons in 2008 and were valued 

over $17 million. The largest United 

States export market for frozen highbush 

blueberries is Canada which accounted 

for 47 percent of the total quantity 

exported in 2008. Japan was the second 

largest United States market accounting 

for 39 percent. The remaining 14 

percent of United States exports were 

sent mainly to other Asian, United 

Kingdom, and European countries. 

In 2008, the United States imported 

45,105 metric tons of fresh highbush 

blueberries worth over $229 million. 

The largest imports of highbush 

blueberries came from Chile which 

accounted for 61 percent of the total in 

2008. Other major suppliers of fresh 

highbush blueberries were Canada at 19 

percent and Argentina at 17 percent of 

the total. The remaining 3 percent of 

imported highbush blueberries came 

from New Zealand and Uruguay. 

The United States imports of frozen 

highbush blueberries totaled 19,152 

metric tons in 2008 and were valued 

over $64 million. The bulk of the United 

States frozen highbush blueberries 

imports came from Canada which 

accounted for 78 percent of total in 

2008. Other major suppliers of frozen 

highbush blueberries were Chile with 16 

percent of the total, Argentina with 5 

percent and the Netherlands with 1 

percent. 

According to the Council, assessments 

received in 2008 reached $2.4 million. 

Of the total, the Council received 

$830,222 from import assessment 

collections which is approximately 35 

percent of the Council’s total budget. 

The Council has projected import 

assessment collections at $850,000 for 

the 2009 budget year. 


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In the international market, highbush 

blueberry production has increased in 

Canada, Mexico, Latin America, Europe, 

and Asia. The highbush blueberry 

acreage worldwide has nearly doubled 

in the past five years from an estimated 

83,299 acres in 2003 to an estimated 

163,065 acres in 2008. Based on the data 

in the Council’s 2007–2008 World 

Acreage and Production Report, North 

America represented 77 percent of the 

total worldwide highbush blueberry 

acreage in 2003 (64,360 acres), but just 

59 percent of the estimated total acreage 

in 2008 (95,607 acres). 

Most of the worldwide growth over 

the past five years has taken place in 

South America which has increased 

acreage from an estimated 6,939 acres in 

2003 to an estimated 39,703 acres in 

2008, a nearly six fold increase with the 

largest growth in Chile and Argentina. 

Most of the growth in European 

production, which has increased from 

8,978 acres in 2003 to 18,038 in 2008, 

has taken place in Spain, Germany, and 

Poland. Asian highbush blueberry 

production has increased during this 

five-year period from 2,372 acres to 

7,870 acres with most of the growth 

taking place in China and to a lesser 

extent Japan. Acreage in Australia and 

New Zealand has not significantly 

increased during this period. 

Given worldwide acreage estimates, 

projections show that given optimal 

conditions with no crop losses or 

disruptions, total worldwide highbush 

blueberry production has the potential 

to increase from an estimated 606 

million pounds in 2008 to an estimated 

1.5 billion pounds by the year 2015, 

more than two times the current level of 

production in the next seven years. This 

total does not include lowbush (wild) 

blueberry production, which at the 

current time averages around 200 

million pounds per year. These 

projections are considered ‘‘optimal’’ 

forecasts and are based on the potential 

of what has been planted to date as well 

as upon assumptions of favorable crop 

years in all international highbush 

blueberry growing regions. During this 

period North American highbush 

blueberry production is estimated to 

increase from 407 million pounds in 

2008 to 890 million pounds by the year 

2015, more than two times the current 

level of production. With expanded 

worldwide production of highbush 

blueberries projected to increase supply, 

the Council recommends that additional 

revenue be used to explore new markets 

internationally as well as find new uses 

and applications for highbush 

blueberries in the United States. 

Even though the highbush blueberry 

production is expected to increase over 

the next few seasons, the rate of increase 

should begin to slow as planting is 

expected to decline over this time 

period, as it is traditionally the case 

with other crops that have experienced 

the same growth patterns as the current 

one enjoyed by the highbush blueberry 

industry. However, a corresponding 

rapid growth in per capita consumption 

over the next seven years will be needed 

to keep pace with domestic and 

international highbush blueberry 

production in order to maintain a 

supply and demand balance. The 

Council believes that if they do not 

conduct more aggressive promotional 

efforts, the total demand may fall short 

of the projected supply. 

Due to the domestic and international 

highbush blueberry production increase, 

the effect of the highbush blueberry 

supply is reflected in current frozen 

highbush blueberry inventory. The most 

recent Department’s National 

Agricultural Statistic Service Public 

Cold Storage Report (Report), shows 

February 2009 inventory of frozen 

highbush and lowbush blueberries at 

130 million pounds, an increase of 36 

million pounds over the total of 94 

million pounds held in inventory at the 

same time in 2008. Given the 

anticipated size of the 2008 highbush 

blueberry crop, carry in inventory at the 

start of the 2008 season, and projected 

movement of the 2008 crop (even at 

levels above those recorded in previous 

years), the Council projects a significant 

increase in carry out inventory at the 

start of the 2009 domestic highbush 

blueberry season. Although fresh 

highbush blueberry demand and 

movement in the United States 

continues to increase and frozen 

highbush blueberry exports have been 

increasing over the past three seasons, 

there are still increased amounts of 

highbush blueberries in cold storage, 

particularly over the last three years. 

This trend is expected to continue 

unless efforts are taken to more 

aggressively promote highbush 

blueberries and work toward a more 

balanced supply and demand situation. 

The Council has found the increase in 

the highbush blueberry interest reflected 

in per capita consumption increases in 

the United States. According to the 

NABC Statistical Record 2007, the 

United States has seen impressive gains 

in per capita consumption over the past 

ten years. Total highbush blueberry 

consumption both fresh and processed 

has increased by 68 percent from 

slightly over 13 ounces per person in 

1997 to just over 22 ounces per person 

in 2007. Most of this increase has been 

in the fresh market with fresh 

consumption nearly doubling over this 

period from 4.8 ounces per person to an 

estimated 9.2 ounces per person. During 

this same period, process (frozen) 

highbush blueberry consumption was 

up 55 percent from 8.4 ounces to 13 

ounces per person. 

With the proposed increased 

assessment rate, the financial 

commitment of the United States 

highbush blueberry industry for generic 

research and promotion activity would 

increase 100 percent in current dollars. 

For example, if the Council applies the 

proposed assessment increase to the 

2008 crop year, in which collections 

totaled $2.4 million, the increase in 

assessments collected would have been 

approximately an additional $2.4 

million for a total of $4.8 million. The 

Council plans to use additional funds to 

broaden current promotional programs 

with consumers, food service, and food 

manufacturers within the United States 

and international countries. 

Furthermore, the Council plans to add 

an advertising component to expand the 

reach and frequency of highbush 

blueberry messages and explore new 

and evolving media options offered 

through the Internet and web-based 

communications. The Council is 

currently supporting age-related disease 

and vision studies with a number of 

universities the additional funding will 

enable human clinical research trials to 

begin. By changing the assessment rate 

to $24 per ton, the Council stated that 

the additional funding will allow for a 

greater educational effort in the areas of 

good management practices and food 

safety. 

According to the Department’s 

National Agricultural Statistic Service 

Noncitrus Fruits and Nuts 2008 

Preliminary Summary notes the United 

States price per pound for fresh 

highbush blueberries in 2008 totaled 

$2.11 per pound and $0.859 per pound 

for processed highbush blueberries. 

Using these prices, the proposed $12 per 

ton assessment rate increase will cost 

the producer approximately .006 cents 

per pound which represents an increase 

of approximately .003 percent of the 

total fresh price per pound and .007 

percent of the total processed price per 

pound. 

Section 1218.55 of the Order requires 

the Council to conduct an independent 

evaluation of the effectiveness of the 

program conducted by the Council 

pursuant to the Act every five years. The 

Council submits the independent 

evaluation to the Department which is 

available to the public. An econometric 

evaluation titled ‘‘An Economic 

Analysis of Domestic Market Impacts of 

the U.S. Highbush Blueberry Council’’ 

was conducted by Dr. Harry Kaiser of 


hsrobinson on PROD1PC76 with PROPOSALS
36958 Federal Register / Vol. 74, No. 142 / Monday, July 27, 2009 / Proposed Rules 

Cornell University in 2005. The study 

evaluated the Council’s progress based 

on data from 2001 to 2004. The 

estimated demand equation used in the 

study was simulated to determine the 

market impacts of the Council’s 

promotion activities for the period of 

2001 to 2004. In the baseline scenario, 

promotion expenditures were set equal 

to actual levels from 2001 to 2004. In 

another scenario without the Council’s 

marketing activities, promotion 

expenditures were set equal to zero for 

the same period. The difference between 

the two scenarios gives the total impact 

of the Council promotion programs on 

domestic highbush blueberry 

commercial disappearance. The 

simulation results indicated that the 

Council had a major impact on annual 

highbush blueberry demand in the 

United States. From 2001 to 2004, the 

Council’s promotion activities increased 

total highbush blueberry commercial 

disappearance by 36 million pounds, or 

9 million pounds per year. This 

represents an annual increase in 

highbush blueberry commercial 

disappearance of almost three percent 

during this period. The study concluded 

that the promotional spending by the 

Council clearly had a positive effect on 

domestic highbush blueberry demand. 

The evaluation also indicated that 

generic highbush blueberry promotion 

by the Council had a positive impact on 

the highbush blueberry growers’ price 

over this period. The average increase in 

price ranged from 2.3 cents per pound 

in the case of the least elastic supply 

response, to 0.8 cents per pound in the 

case of the most elastic supply response. 

The average impact over all supply 

responses was 1.4 cents per pound. 

According to the evaluation, had there 

not been generic highbush blueberry 

promotion by the Council, the average 

growers’ price would have been 1.4 

cents per pound, or 1.8 percent, lower 

from 2001 to 2004. 

The benefits of the Council program 

were highlighted using a Benefit Cost 

Ratio (BCR) analysis. An average BCR 

was computed for the generic promotion 

activities of the Council, and the BCR 

exceeded 1.0 for every supply response 

considered in the simulation. For the 

least elastic supply response, the 

average BCR was 13.22. This implies 

that, on average over the period 2001– 

2004, the benefits of the Council 

promotion programs have been over 13 

times greater than the costs. At the 

opposite end of the spectrum in supply 

response, the average BCR was 

computed to be 4.46, implying that the 

benefits of the Council were over four 

times greater than the costs. Given the 

wide range of supply responses 

considered in the analysis, and the fact 

that the BCR was above 1.0 in all cases, 

there is significant evidence that the 

Council’s promotion programs have 

been profitable for the domestic 

highbush blueberry industry. 

According to the Council, such 

findings give added confidence that an 

expanded market promotion program 

will help the industry to work toward a 

supply and demand balance in the 

coming years as highbush blueberry 

production expands at an increasing 

rate. 

With regards to alternatives, the 

Council evaluated a media plan 

designed to advertise to consumers 

nationwide with a proposed rate of $18 

per ton on highbush blueberries. At this 

assessment rate level, the Council could 

continue to support its current market 

promotion efforts and add a $1 million 

media budget for advertising. This level 

would result in 45 percent reach and a 

frequency of 4 of the target audience 

which is 18 million out of the 40 

million of the United States population. 

The Council discussed the rate of $18 

per ton and determined that the 

highbush blueberry potential supply 

and demand situation would require a 

need to create greater awareness than 

the level that could be generated at $18 

per ton. Therefore, the Council decided 

to recommend the rate of $24 per ton on 

highbush blueberries which is the first 

assessment increase since the Council 

was established in August 2000. 

This rule does not impose additional 

recordkeeping requirements on 

producers, first handlers, exporters, or 

importers of highbush blueberries. 

Producers of fewer than 2,000 pounds of 

highbush blueberries and importers of 

less than 2,000 pounds of fresh and 

frozen highbush blueberries annually 

are exempt. 

There are no Federal rules that 

duplicate, overlap, or conflict with this 

rule. 

In accordance with the Office of 

Management and Budget (OMB) 

regulation [5 CFR part 1320] which 

implements the Paperwork Reduction 

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

information collection and 

recordkeeping requirements that are 

imposed by the Order have been 

approved previously under OMB 

control number 0581–0093. This rule 

does not result in a change to the 

information collection and 

recordkeeping requirements previously 

approved. 

We have performed this Initial 

Regulatory Flexibility Analysis 

regarding the impact of this proposed 

amendment to the Order on small 

entities, and we invite comments 

concerning potential effects of this 

amendment on small businesses. 

Background 

Under the Order, the Council 

administers a nationally coordinated 

program of research, development, 

advertising, and promotion designed to 

strengthen the position of highbush 

blueberries in the marketplace, and to 

establish, maintain, and expand markets 

for highbush blueberries. This program 

is financed by assessments on producers 

growing 2,000 pounds or more of 

highbush blueberries and importers who 

import 2,000 or more pounds of 

highbush blueberries per year. The 

Order specifies that handlers are 

responsible for collecting and 

submitting the producer assessments to 

the Council and maintaining records 

necessary to verify their reporting(s). 

Importers are responsible for payment of 

assessments to the Council on highbush 

blueberries imported into the United 

States through the U.S. Customs Service 

and Border Protection. 

This rule proposes to increase the 

assessment rate to $24 per ton for 

producers and importers who produce 

and import more than 2,000 pounds of 

highbush blueberries annually. 

Currently, the assessment rate is $12 per 

ton levied on highbush blueberries 

produced within the 50 States, the 

District of Columbia, the 

Commonwealth of Puerto Rico, and the 

territories and possessions of the United 

States and imports of more than 2,000 

pounds into the United States. In order 

to expand promotion, health research, 

new uses and applications for highbush 

blueberries, and education about good 

management practices for food safety, 

the Council believes that additional 

revenue is needed. The proposed $24 

per ton assessment rate increase is 

estimated to generate $2.4 million in 

new revenue for a total of $4.8 million 

depending on production levels. For the 

2008 crop year, total production was 

408 million pounds of highbush 

blueberries resulting in $2.4 million in 

assessment collections. Of the total, the 

Council received $830,222 from import 

assessment collections which is 

approximately 35 percent of the 

Council’s total budget. The Council has 

projected import assessment collections 

at $850,000 for the 2009 budget year. 

With the additional revenue, the 

Council would continue to dedicate 65 

percent of their budget to market 

promotions and expand its existing 

promotional programs directed to 

consumers, food service and food 

manufacturers and add an advertising 

component to reach consumers 

nationwide, as well as internationally. 


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Also, the Council would invest 

additional funds to explore new uses 

and applications for highbush 

blueberries in the domestic and 

international markets. Furthermore, the 

Council stated that it will use the 

additional resources to expand the 

health research studies. 

Furthermore, the Council whose 

members represent all highbush 

blueberry producing states as well as 

importers voted to increase the 

assessment rate at its February 28, 2009, 

meeting. The vote to recommend the 

assessment increase was nine in favor 

and two against of the Council members 

present at the meeting. The two voters 

against the change expressed concern 

about how the growers might respond to 

an assessment increase given the overall 

economic climate the industry is facing 

and noted how an assessment increase 

might impact voting on the program 

continuance referendum in 2011. One of 

the two dissenters noted that in a 

meeting held in his region prior to the 

Council’s meeting, the growers had 

discussed and supported the $18 per ton 

assessment rate increase, but did not 

discuss the $24 per ton increase. 

Accordingly, he did not feel comfortable 

voting for the change. Both dissenting 

voters stated that they were willing to 

support an $18 per ton assessment 

increase instead of the proposed $24 per 

ton. 

The Council evaluated a media plan 

designed to advertise to consumers 

nationwide with a proposed rate of $18 

per ton on highbush blueberries. At this 

assessment rate level, the Council could 

continue to support its current market 

promotion efforts and add a $1 million 

media budget for advertising. This level 

would result in 45 percent reach and a 

frequency of 4 of the target audience 

which is 18 million out of the 40 

million of the United States population. 

The Council discussed the rate of $18 

per ton and determined that the 

highbush blueberry potential supply 

and demand situation would require a 

need to create greater awareness than 

the level that could be generated at $18 

per ton. Therefore, the Council voted to 

recommend the rate of $24 per ton on 

highbush blueberries which is the first 

assessment increase since the Council 

was established in August 2000. 

If adopted, the Council’s 

recommended assessment rate would be 

applicable to the 2010 highbush 

blueberry crop. The higher assessment 

rate on the 2010 crop would generate 

additional dollars allocated for the 2011 

budget year. The Council plans to 

increase the domestic marketing budget 

beginning that year to $4 million which 

would allow for as much as $2 million 

allocation to advertising to increase the 

frequency of the Council’s message. 

According to the Council, this increase 

would gain greater awareness for 

highbush blueberries. 

This rule would amend the rules and 

regulations under the Order. The rate 

would increase the assessment from $12 

per ton to $24 per ton on highbush 

blueberries. This proposed increase is 

consistent with section 517(d) of the Act 

that permits changes in the assessment 

rate through notice and comment 

procedures. Section 1218.52(c) of the 

Order state assessments can be levied at 

a rate of $12 per ton on all highbush 

blueberries. The assessment rate will be 

reviewed and may be modified with the 

approval of the Secretary. 

The Council is recommending the 

proposed assessment rate increase for 

the following reasons: (1) A potential 

gap between highbush blueberry 

demand and future supply in the United 

States; (2) efforts are necessary to 

strengthen the Council’s existing 

consumer, food service, and food 

manufacturer publicity and export 

market promotion programs and add an 

advertising component to expand the 

reach and frequency of the highbush 

blueberry message; (3) the Council plans 

to invest additional revenue to explore 

new markets both domestic and 

international, as well as to explore new 

uses and application for highbush 

blueberries; (4) to expand its investment 

in more health research and move to 

human clinical trials to discover 

additional product attributes; and (5) 

added funding will allow for greater 

educational effort in the critical areas of 

good management practices and food 

safety. Accordingly, section 1218.52(c) 

of the Order would be revised. 

A 60-day comment period is provided 

to allow interested persons to respond 

to this proposal. All written comments 

received in response to this rule by the 

date specified would be considered 

prior to finalizing this action. 

List of Subjects in 7 CFR Part 1218 

Administrative practice and 

procedure, Advertising, Consumer 

information, Marketing agreements, 

Blueberry promotion, Reporting and 

recordkeeping requirements. 

For the reasons set forth in the 

preamble, Part 1218, Chapter XI of Title 

7 is proposed to be amended as follows: 

PART 1218—BLUEBERRY 

PROMOTION, RESEARCH, AND 

INFORMATION ORDER 

1. The authority citation for 7 CFR 

part 1218 continues to read as follows: 

Authority: 7 U.S.C. 7411–7425; 7 U.S.C. 

7401. 

2. In § 1218.52, paragraph (c) is 

revised to read as follows: 

§ 1218.52 Assessments. 

* * * * * 

(c) Such assessments shall be levied at 

a rate of $24 per ton on all blueberries. 

The assessment rate will be reviewed, 

and may be modified with the approval 

of the Secretary, after the first 

referendum is conducted as stated in 

§ 1218.71(b). 

* * * * * 

Dated: July 21, 2009. 

David R. Shipman, 

Associate Administrator, Agricultural 

Marketing Service. 

[FR Doc. E9–17802 Filed 7–24–09; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF ENERGY 

10 CFR Part 430 

[Docket No. EERE–2008–BT–TP–0020] 

RIN 1904–AB89 

Energy Conservation Program for 

Consumer Products: Test Procedures 

for Residential Furnaces and Boilers 

AGENCY: Office of Energy Efficiency and 

Renewable Energy, Department of 

Energy. 

ACTION: Notice of proposed rulemaking 

and public meeting. 

SUMMARY: In order to implement recent 

amendments to the Energy Policy and 

Conservation Act (EPCA), the U.S. 

Department of Energy (DOE) proposes to 

amend its test procedures for residential 

furnaces and boilers to provide for 

measurement of standby mode and off 

mode energy consumption. Specifically, 

the proposed amendments would 

incorporate into the DOE test 

procedures the International 

Electrotechnical Commission’s (IEC) 

Standard 62301, Household electrical 

appliances—Measurement of standby 

power (First Edition 2005–06), as well as 

language to clarify application of this 

standard for measuring standby mode 

and off mode power consumption in 

furnaces and boilers. In addition, the 

proposed amendments would add new 

calculations to determine annual energy 

consumption associated with standby 

mode and off mode measured power. 

Finally, the amendments would modify 

existing energy consumption equations 

to integrate standby mode and off mode 

energy consumption into the calculation 

of overall annual energy consumption of 


hsrobinson on PROD1PC76 with PROPOSALS