This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

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

The Code of Federal Regulations is sold by

the Superintendent of Documents.

Rules and Regulations Federal Register

43297 

Vol. 82, No. 178 

Friday, September 15, 2017 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 922 

[Doc. No. AMS–SC–17–0033; SC17–922–1 

IR] 

Apricots Grown in Designated 

Counties in Washington; Decreased 

Assessment Rate 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Interim rule with request for 

comments. 

SUMMARY: This rule implements a 

recommendation from the Washington 

Apricot Marketing Committee 

(Committee) for a decrease in the 

assessment rate established for the 

2017–2018 and subsequent fiscal 

periods from $1.40 to $1.00 per ton of 

apricots handled. The Committee 

locally administers the marketing order 

and is comprised of growers and 

handlers of apricots operating within 

the area of production. Assessments 

upon apricot handlers are used by the 

Committee to fund reasonable and 

necessary expenses of the program. The 

fiscal period begins April 1 and ends 

March 31. The assessment rate will 

remain in effect indefinitely unless 

modified, suspended, or terminated. 

DATES: Effective September 18, 2017. 

Comments received by November 14, 

2017, will be considered prior to 

issuance of a final rule. 

ADDRESSES: Interested persons are 

invited to submit written comments 

concerning this rule. Comments must be 

sent to the Docket Clerk, Marketing 

Order and Agreement Division, 

Specialty Crops Program, AMS, USDA, 

1400 Independence Avenue SW., STOP 

0237, Washington, DC 20250–0237; Fax: 

(202) 720–8938; or Internet: http://

www.regulations.gov. Comments should 

reference the document number and the 

date and page number of this issue of 

the Federal Register and will be 

available for public inspection in the 

Office of the Docket Clerk during regular 

business hours, or can be viewed at: 

http://www.regulations.gov. All 

comments submitted in response to this 

rule will be included in the record and 

will be made available to the public. 

Please be advised that the identity of the 

individuals or entities submitting the 

comments will be made public on the 

internet at the address provided above. 

FOR FURTHER INFORMATION CONTACT: Dale 

Novotny, Marketing Specialist, or Gary 

D. Olson, Regional Director, Northwest 

Marketing Field Office, Marketing Order 

and Agreement Division, Specialty 

Crops Program, AMS, USDA, 

Telephone: (503) 326–2724, Fax: (503) 

326–7440, or Email: DaleJ.Novotny@

ams.usda.gov or GaryD.Olson@

ams.usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Richard Lower, 

Marketing Order and Agreement 

Division, Specialty Crops Program, 

AMS, USDA, 1400 Independence 

Avenue SW., STOP 0237, Washington, 

DC 20250–0237, Telephone: (202) 720– 

2491, Fax: (202) 720–8938, or Email: 

Richard.Lower@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This rule 

is issued under Marketing Agreement 

and Order No. 922, both as amended (7 

CFR part 922), regulating the handling 

of apricots grown in designated counties 

in Washington, hereinafter referred to as 

the ‘‘order.’’ The order is effective under 

the Agricultural Marketing Agreement 

Act of 1937, as amended (7 U.S.C. 601– 

674), hereinafter referred to as the 

‘‘Act.’’ 

The Department of Agriculture 

(USDA) is issuing this rule in 

conformance with Executive Orders 

13563, and 13175. 

This rule does not meet the definition 

of a significant regulatory action 

contained in section 3(f) of Executive 

Order, and is not subject to review by 

the Office of Management and Budget 

(OMB). Additionally, because this rule 

does not meet the definition of a 

significant regulatory action it does not 

trigger the requirements contained in 

Executive Order 13771. See OMB’s 

Memorandum titled ‘‘Interim Guidance 

Implementing Section 2 of the Executive 

Order of January 30, 2017, titled 

‘Reducing Regulation and Controlling 

Regulatory Costs’ ’’ (February 2, 2017). 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. Under the marketing order now 

in effect, Washington apricot handlers 

are subject to assessments. Funds to 

administer the order are derived from 

such assessments. It is intended that the 

assessment rate as issued herein will be 

applicable to all assessable apricots 

beginning April 1, 2017, and continue 

until amended, suspended, or 

terminated. 

The Act provides that administrative 

proceedings must be exhausted before 

parties may file suit in court. Under 

section 608c(15)(A) of the Act, any 

handler subject to an order may file 

with USDA a petition stating that the 

order, any provision of the order, or any 

obligation imposed in connection with 

the order is not in accordance with law 

and request a modification of the order 

or to be exempted therefrom. Such 

handler is afforded the opportunity for 

a hearing on the petition. After the 

hearing, USDA would rule on the 

petition. The Act provides that the 

district court of the United States in any 

district in which the handler is an 

inhabitant, or has his or her principal 

place of business, has jurisdiction to 

review USDA’s ruling on the petition, 

provided an action is filed not later than 

20 days after the date of the entry of the 

ruling. 

This rule decreases the assessment 

rate established under the order for the 

2017–2018 and subsequent fiscal 

periods from $1.40 to $1.00 per ton of 

apricots handled. 

The order provides authority for the 

Committee, with the approval of USDA, 

to formulate an annual budget of 

expenses and collect assessments from 

handlers to administer the program. The 

members of the Committee are growers 

and handlers of Washington apricots. 

They are familiar with the Committee’s 

needs and with the costs for goods and 

services in their local area and are thus 

in a position to formulate an appropriate 

budget and assessment rate. The 

assessment rate is formulated and 

discussed in a public meeting. Thus, all 

directly affected persons have an 

opportunity to participate and provide 

input. 

For the 2016–2017 and subsequent 

fiscal periods, the Committee 

recommended, and USDA approved, an 

assessment rate of $1.40 per ton of 

apricots handled, that would continue 

mstockstill on DSK30JT082PROD with RULES

43298 Federal Register / Vol. 82, No. 178 / Friday, September 15, 2017 / Rules and Regulations 

in effect from fiscal period to fiscal 

period unless modified, suspended, or 

terminated by USDA upon 

recommendation and information 

submitted by the Committee or other 

information available to USDA. 

The Committee met on May 3, 2017, 

and unanimously recommended 2017– 

2018 fiscal period expenditures of 

$8,225 and a decreased assessment rate 

of $1.00 per ton of apricots handled. In 

comparison, 2016–2017 fiscal period’s 

budgeted expenditures were $7,160. The 

assessment rate of $1.00 per ton is $0.40 

lower than the rate currently in effect. 

Favorable growing conditions led to a 

2016 crop which was 1,028 tons higher 

than estimated by the Committee. The 

extra revenue from the larger than 

anticipated crop during the 2016–2017 

fiscal period, combined with lower than 

anticipated expenses, resulted in a 

$3,064 increase in the Committee’s 

financial reserve. 

The major expenditures 

recommended by the Committee for the 

2017–2018 fiscal period include $4,000 

in management contract services; $2,000 

for the annual audit; $1,300 for 

Committee travel expenses; $500 for 

technological services, software, and 

equipment; and $425 in miscellaneous 

office expenses. Budgeted expenses for 

these items in the 2016–2017 fiscal 

period were $3,000, $2,000, $1,200, 

$500, and $460, respectively. 

The assessment rate recommended by 

the Committee was derived by dividing 

anticipated expenses by expected 

shipments of Washington apricots. After 

an open discussion with growers, 

handlers, and industry personnel, the 

Committee established a crop estimate 

for the 2017–2018 fiscal period of 6,000 

tons. The Committee considered the 

crop estimate, the recommended 2017– 

2018 fiscal period expenses, and the 

Committee’s financial reserve when it 

recommended the assessment rate 

decrease. 

The estimated 6,000 tons of apricot 

shipments should provide $6,000 in 

assessment income at the $1.00 per ton 

assessment rate. Income derived from 

handler assessments, along with interest 

income and funds from the Committee’s 

authorized reserve, will be adequate to 

cover budgeted expenses. 

Sections 922.42(a)(2) and 922.142 of 

the order authorize the Committee to 

carry over excess funds into subsequent 

marketing years as a reserve, provided 

that funds do not exceed approximately 

one year’s operational expenses. The 

Committee’s financial reserve balance 

was $10,365 on March 31, 2017, the end 

of the 2016–2017 fiscal period. The 

Committee anticipates a reserve balance 

of $8,140 at the end of the 2017–2018 

fiscal period, a level which would be 

within the maximum permitted by the 

order. 

The assessment rate established in 

this rule will continue in effect 

indefinitely unless modified, 

suspended, or terminated by USDA 

upon recommendation and information 

submitted by the Committee or other 

available information. 

Although this assessment rate is 

effective for an indefinite period, the 

Committee will continue to meet prior 

to or during each fiscal period to 

recommend a budget of expenses and 

consider recommendations for 

modification of the assessment rate. The 

dates and times of Committee meetings 

are available from the Committee or 

USDA. Committee meetings are open to 

the public and interested persons may 

express their views at these meetings. 

USDA will evaluate Committee 

recommendations and other available 

information to determine whether 

modification of the assessment rate is 

needed. Further rulemaking will be 

undertaken as necessary. The 

Committee’s 2017–2018 budget, and 

those for subsequent fiscal periods, will 

be reviewed and, as appropriate, 

approved by USDA. 

Regulatory Flexibility Act 

Pursuant to requirements set forth in 

the Regulatory Flexibility Act (RFA) (5 

U.S.C. 601–612), the Agricultural 

Marketing Service (AMS) has 

considered the economic impact of this 

rule on small entities. Accordingly, 

AMS has prepared this initial regulatory 

flexibility analysis. 

The purpose of the RFA is to fit 

regulatory actions to the scale of 

businesses subject to such actions in 

order that small businesses will not be 

unduly or disproportionately burdened. 

Marketing orders issued pursuant to the 

Act, and the rules issued thereunder, are 

unique in that they are brought about 

through group action of essentially 

small entities acting on their own 

behalf. 

There are approximately 17 

Washington apricot handlers subject to 

regulation under the order and 

approximately 100 apricot growers in 

the regulated production area. Small 

agricultural service firms (handlers) are 

defined by the Small Business 

Administration (SBA) as those whose 

annual receipts are less than $7,500,000, 

and small agricultural producers 

(growers) are defined as those having 

annual receipts less than $750,000 (13 

CFR 121.201). 

Committee reports indicate that the 

industry shipped 6,028 tons of 

Washington apricots over the 2016– 

2017 fiscal period. Based on information 

from the USDA’s Market News Service, 

2016 f.o.b. prices for Washington No. 1 

apricots ranged from $18.00 to $23.00 

per 24-pound container, for both loose 

pack and 2-layer tray-pack containers. 

Using those prices, and the shipment 

information provided by the Committee, 

the approximate total value of 

Washington apricot shipments likely 

ranged between $9.0 million and $11.6 

million, with the average revenue per 

handler ranging from $532,000 to 

$680,000. It is therefore determined that 

most, if not all, of the Washington 

apricot handlers ship less than 

$7,500,000 worth of apricots on an 

annual basis. 

In addition, using shipment data from 

the Committee and the 2016 National 

Agricultural Statistics Service (NASS) 

average freight on board (f.o.b.) price of 

$1,210 per ton for fresh apricots, total 

revenue for Washington apricot growers 

for the 2016–2017 fiscal period is 

estimated to be approximately $7.3 

million. Based on these reports and the 

number of apricot growers within the 

production area, it is estimated that the 

average per grower revenue from the 

sale of apricots in 2016 was 

approximately $73,000. In view of the 

foregoing, it is concluded that most of 

the handlers and growers of Washington 

apricots may be classified as small 

entities. 

This rule decreases the assessment 

rate collected from handlers, for the 

2017–2018 and subsequent fiscal 

periods from $1.40 to $1.00 per ton of 

apricots. The Committee unanimously 

recommended 2017–2018 expenditures 

of $8,225. The assessment rate of $1.00 

per ton is $0.40 lower than the 

previously established rate. 

The quantity of assessable apricots for 

the 2017–2018 fiscal period is estimated 

at 6,000 tons. Thus, the $1.00 per ton 

rate should provide $6,000 in 

assessment income. Income derived 

from handler assessments, along with 

interest income and funds from the 

Committee’s authorized reserve, will be 

adequate to cover budgeted expenses. 

The major expenditures 

recommended by the Committee for the 

2017–2018 fiscal period include $4,000 

in management contract services; $2,000 

for the annual audit; $1,300 for 

Committee travel expenses; $500 for 

technological services, software, and 

equipment; and $425 for miscellaneous 

office expenses. Budgeted expenses for 

these items in the 2016–2017 fiscal 

period were $3,000, $2,000, $1,200, 

$500, and $460, respectively. 

The assessment rate recommended by 

the Committee was derived by dividing 

anticipated expenses by expected 

mstockstill on DSK30JT082PROD with RULES

Federal Register / Vol. 82, No. 178 / Friday, September 15, 2017 / Rules and Regulations 43299 

shipments of Washington apricots. After 

an open discussion with growers, 

handlers, and industry personnel, the 

Committee established a crop estimate 

for the 2017–2018 fiscal period of 6,000 

tons. The Committee considered the 

crop estimate, the recommended 2017– 

2018 fiscal period expenses, and the 

Committee’s financial reserve when it 

recommended the assessment rate 

decrease. 

Prior to arriving at this budget and 

assessment rate, the Committee 

considered information from various 

sources, such as a presentation from 

representatives of the Washington Stone 

Fruit Commission and comments from 

other industry participants. Alternative 

expenditure levels and assessment rates 

were discussed by these groups, based 

upon the relative value of various 

activities to the apricot industry. The 

Committee ultimately determined that 

the recommended budget was 

appropriate and that assessments at 

$1.00 per ton, along with interest 

income and the authorized reserve fund, 

would generate sufficient revenue to 

meet those budgeted expenses. 

A review of historical information and 

preliminary information pertaining to 

the upcoming fiscal period indicates 

that the grower price for the 2017–2018 

season could range between $800 and 

$1,600 per ton of apricots. Therefore, 

the estimated assessment revenue for 

the 2017–2018 fiscal period as a 

percentage of total grower revenue 

could range between 0.06 and 0.13 

percent. 

This action decreases the assessment 

obligation imposed on handlers. 

Assessments are applied uniformly on 

all handlers, and some of the costs may 

be passed on to growers. However, 

decreasing the assessment rate reduces 

the burden on handlers, and may reduce 

the burden on growers. In addition, the 

Committee’s meeting was widely 

publicized throughout the Washington 

apricot industry and all interested 

persons were invited to attend the 

meeting and participate in Committee 

deliberations on all issues. Like all 

Committee meetings, the May 3, 2017, 

meeting was a public meeting and all 

entities, both large and small, were able 

to express views on this issue. Finally, 

interested persons are invited to submit 

comments on this interim rule, 

including the regulatory and 

informational impacts of this action on 

small businesses. 

In accordance with the Paperwork 

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

Chapter 35), the order’s information 

collection requirements have been 

previously approved by OMB and 

assigned OMB No. 0581–0178; 

Vegetable and Specialty Crops. No 

changes in those requirements as a 

result of this action are necessary. 

Should any changes become necessary, 

they would be submitted to OMB for 

approval. 

This action imposes no additional 

reporting or recordkeeping requirements 

on either small or large Washington 

apricot handlers. As with all Federal 

marketing order programs, reports and 

forms are periodically reviewed to 

reduce information requirements and 

duplication by industry and public 

sector agencies. 

AMS is committed to complying with 

the E-Government Act, to promote the 

use of the internet and other 

information technologies to provide 

increased opportunities for citizen 

access to Government information and 

services, and for other purposes. 

USDA has not identified any relevant 

Federal rules that duplicate, overlap, or 

conflict with this rule. 

A small business guide on complying 

with fruit, vegetable, and specialty crop 

marketing agreements and orders may 

be viewed at: http://www.ams.usda.gov/ 

rules-regulations/moa/small-businesses. 

Any questions about the compliance 

guide should be sent to Richard Lower 

at the previously mentioned address in 

the FOR FURTHER INFORMATION CONTACT

section. 

After consideration of all relevant 

material presented, including the 

information and recommendation 

submitted by the Committee and other 

available information, it is hereby found 

that this rule, as hereinafter set forth, 

will tend to effectuate the declared 

policy of the Act. 

Pursuant to 5 U.S.C. 553, it is also 

found and determined upon good cause 

that it is impracticable, unnecessary, 

and contrary to the public interest to 

give preliminary notice prior to putting 

this rule into effect, and that good cause 

exists for not postponing the effective 

date of this rule until 30 days after 

publication in the Federal Register 

because: (1) This action decreases the 

assessment rate for assessable apricots 

beginning with the 2017–2018 fiscal 

period; (2) handlers are aware of this 

action which was unanimously 

recommended by the Committee at a 

public meeting and is similar to other 

assessment rate actions issued in past 

years; and (3) this interim rule provides 

a 60-day comment period, and all 

comments timely received will be 

considered prior to finalization of this 

rule. 

List of Subjects in 7 CFR Part 922 

Apricots, Marketing agreements, 

Reporting and recordkeeping 

requirements. 

For the reasons set forth in the 

preamble, 7 CFR part 922 is amended as 

follows: 

PART 922—APRICOTS GROWN IN 

DESIGNATED COUNTIES IN 

WASHINGTON 

■ 1. The authority citation for part 922 

continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. Section 922.235 is revised to read 

as follows: 

§ 922.235 Assessment rate. 

On and after April 1, 2017, an 

assessment rate of $1.00 per ton is 

established for Washington apricots 

handled in the production area. 

Dated: September 11, 2017. 

Bruce Summers, 

Acting Administrator, Agricultural Marketing 

Service. 

[FR Doc. 2017–19553 Filed 9–14–17; 8:45 am] 

BILLING CODE 3410–02–P 

PENSION BENEFIT GUARANTY 

CORPORATION 

29 CFR Parts 4022 and 4044 

Allocation of Assets in SingleEmployer Plans; Benefits Payable in 

Terminated Single-Employer Plans; 

Interest Assumptions for Valuing and 

Paying Benefits 

AGENCY: Pension Benefit Guaranty 

Corporation. 

ACTION: Final rule. 

SUMMARY: This final rule amends the 

Pension Benefit Guaranty Corporation’s 

regulations on Benefits Payable in 

Terminated Single-Employer Plans and 

Allocation of Assets in Single-Employer 

Plans to prescribe interest assumptions 

under the benefit payments regulation 

for valuation dates in October 2017 and 

interest assumptions under the asset 

allocation regulation for valuation dates 

in the fourth quarter of 2017. The 

interest assumptions are used for 

valuing and paying benefits under 

terminating single-employer plans 

covered by the pension insurance 

system administered by PBGC. 

DATES: Effective October 1, 2017. 

FOR FURTHER INFORMATION CONTACT: 

Daniel S. Liebman (Liebman.daniel@

PBGC.gov), Acting Assistant General 

Counsel for Regulatory Affairs, Pension 

Benefit Guaranty Corporation, 1200 K 

mstockstill on DSK30JT082PROD with RULES