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. Prices of

new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

65423

Vol. 66, No. 244

Wednesday, December 19, 2001

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 989

[Docket No. FV02–989–3 IFR]

Raisins Produced From Grapes Grown

in California; Extension of Redemption

Date for Unsold 2001 Diversion

Certificates

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Interim final rule with request

for comments.

SUMMARY: This rule extends the

deadline by which raisin handlers must

redeem diversion certificates issued

under the 2001 raisin diversion program

(RDP). The deadline is specified under

the Federal marketing order for

California raisins (order). The order

regulates the handling of raisins

produced from grapes grown in

California and is administered locally

by the Raisin Administrative Committee

(RAC). This action gives producers

additional time to sell their certificates

to handlers and thus be compensated for

diverting their 2001 production, which

is the intent of the RDP.

DATES: Effective December 20, 2001.

Comments received by January 3, 2002,

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 Administration Branch, Fruit and

Vegetable Programs, AMS, USDA, 1400

Independence Avenue, SW STOP 0237,

Washington, DC 20250–0237; Fax: (202)

720–5698, or e-mail:

moab.docketclerk@usda.gov. 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 Office of the Docket

Clerk during regular business hours, or

can be viewed at: http://

www.ams.usda.gov/fv/moab.html.

FOR FURTHER INFORMATION CONTACT:

Maureen T. Pello, Senior Marketing

Specialist, California Marketing Field

Office, Marketing Order Administration

Branch, Fruit and Vegetable Programs,

AMS, USDA, 2202 Monterey Street,

suite 102B, Fresno, California 93721;

telephone: (559) 487–5901, Fax: (559)

487–5906; or George Kelhart, Technical

Advisor, Marketing Order

Administration Branch, Fruit and

Vegetable Programs, AMS, USDA, 1400

Independence Avenue, SW STOP 0237,

Washington, DC 20250–0237; telephone:

(202) 720–2491, Fax: (202) 720–5698.

Small businesses may request

information on complying with this

regulation by contacting Jay Guerber,

Marketing Order Administration

Branch, Fruit and Vegetable Programs,

AMS, USDA, 1400 Independence

Avenue, SW STOP 0237, Washington,

DC 20250–0237; telephone: (202) 720–

2491, Fax: (202) 720–5698, or e-mail:

Jay.Guerber@usda.gov.

SUPPLEMENTARY INFORMATION: This rule

is issued under Marketing Agreement

and Order No. 989 (7 CFR part 989),

both as amended, regulating the

handling of raisins produced from

grapes grown in California, 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 Order

12866.

This rule has been reviewed under

Executive Order 12988, Civil Justice

Reform. This rule extends the deadline

by which handlers may redeem

diversion certificates issued under the

2001 RDP for Natural (sun-dried)

Seedless (NS) raisins. The deadline is

extended from December 17, 2001, to

January 18, 2002, and applies only to

certificates unsold by producers to

handlers as of December 18, 2001. This

rule will not preempt any State or local

laws, or policies, unless they present an

irreconcilable conflict with this rule.

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 extends the deadline by

which handlers may redeem diversion

certificates issued under the 2001 NS

RDP. The deadline is extended from

December 17, 2001, to January 18, 2002,

and applies only to certificates unsold

by producers as of December 18, 2001.

This action gives producers additional

time to sell their certificates to handlers

and thus be compensated for diverting

their 2001 production, which is the

intent of the RDP. This action was

recommended by the RAC at a meeting

on December 11, 2001, by a near

unanimous vote of 36 in favor, 2

opposed (believed the RAC should

adhere to the current deadline), and 1

abstained.

Volume Regulation Provisions

The order provides authority for

volume regulation designed to promote

orderly marketing conditions, stabilize

prices and supplies, and improve

producer returns. When volume

regulation is in effect, a certain

percentage of the California raisin crop

may be sold by handlers to any market

(free tonnage) while the remaining

percentage must be held by handlers in

a reserve pool (reserve) for the account

of the RAC. Reserve raisins are disposed

of through various programs authorized

under the order. For example, reserve

raisins may be sold by the RAC to

handlers for free use or to replace part

of the free tonnage they exported;

carried over as a hedge against a short

crop the following year; or may be

disposed of in other outlets not

competitive with those for free tonnage

raisins, such as government purchase,

distilleries, or animal feed. Net proceeds

65424 Federal Register / Vol. 66, No. 244 / Wednesday, December 19, 2001 / Rules and Regulations

from sales of reserve raisins are

ultimately distributed to producers.

Raisin Diversion Program

The RDP is another program

concerning reserve raisins authorized

under the order and may be used as a

means for controlling overproduction.

Authority for the program is provided in

§ 989.56 of the order. Paragraph (e) of

that section provides authority for the

RAC to establish, with the approval of

USDA, such rules and regulations as

may be necessary for the

implementation and operation of an

RDP. Accordingly, additional

procedures and deadlines are specified

in § 989.156.

Pursuant to these sections, the RAC

must meet by November 30 each crop

year to review raisin data, including

information on production, supplies,

market demand, and inventories. If the

RAC determines that the available

supply of raisins, including those in the

reserve pool, exceeds projected market

needs, it can decide to implement a

diversion program, and announce the

amount of tonnage eligible for diversion

during the subsequent crop year.

Producers who wish to participate in

the RDP must submit an application to

the RAC prior to December 20. The RAC

conducts a lottery if the tonnage applied

for exceeds what has been allotted. RAC

staff then notifies producers whether

they have been accepted into the

program.

Approved producers curtail their

production by vine removal or some

other means established by the RAC.

Such producers receive a certificate the

following fall from the RAC which

represents the quantity of raisins

diverted. Producers sell these

certificates to handlers who pay

producers for the free tonnage

applicable to the diversion certificate

minus the established harvest cost for

the diverted tonnage. Handlers redeem

the certificates by presenting them to

the RAC by December 15 (Monday,

December 17, 2001, for the 2001 RDP

since December 15 fell on a Saturday)

and paying an amount equal to the

established harvest cost plus payment

for receiving, storing, fumigating,

handling, and inspecting the tonnage

represented on the certificate. The RAC

then gives the handler raisins from the

prior year’s reserve pool in an amount

equal to the tonnage represented on the

diversion certificate. The new crop

year’s volume regulation percentages are

applied to the diversion tonnage

acquired by the handler (as if the

handler had bought raisins directly from

a producer).

2001 NS Diversion Program

The 2000–01 California NS raisin crop

was the largest on record with final

deliveries of raisins from producers to

handlers totaling 432,616 tons. This

compares to the 10-year average of

344,303 tons. With this large crop,

203,330 tons of NS raisins were set

aside in a reserve pool. Of that reserve

tonnage, 89,076 tons were ultimately

allocated to a diversion program. As of

December 1, 2001, 70,529 tons of

diversion certificates had been acquired

by handlers. It was reported at the

December 11, 2001, RAC meeting, by

RAC staff that the status of about 2,000

tons of 2001 diversion certificates are

unknown.

RAC Recommendation

The RAC met on December 11, 2001,

and addressed a concern expressed by

some producers with the 2001 RDP.

Some producers have had trouble

selling their 2001 diversion certificates

to handlers. There was concern that

some certificates may remain unsold

and unredeemed by the December 15

deadline (or Monday, December 17,

2001, for the 2001 RDP since December

15 fell on a Saturday). Several reasons

were mentioned as to why this was

occurring. The California raisin industry

as a whole is experiencing a severe

economic downturn. Two short crops in

1998 and 1999 along with other factors

caused producer prices to drop

drastically for the 2000 crop, marking

the first time in about 13 years that

prices had fallen. The value of handler

inventories has likewise fallen which

has contributed to handler difficulties in

securing financing to purchase

diversion certificates from producers. In

addition, some handlers do not need

any more raisins to meet their market

needs. In some instances, producers

have tried to negotiate a premium price

for their certificates with handlers.

After deliberating various options

(discussed in the following section of

this rule regarding the Regulatory

Flexibility Analysis), the RAC

recommended extending the deadline

for handlers to redeem 2001 diversion

certificates from December 17, 2001, to

January 18, 2002. The extension applies

only to 2001 certificates unsold by

producers as of December 18, 2001.

Producers still holding certificates must

have the certificates verified and

stamped appropriately by the RAC by

December 21, 2001, to indicate that such

certificates will be valid until January

18, 2002. Handlers may then purchase

these certificates from producers and

redeem them for 2000–01 crop reserve

raisins following prescribed procedures

in § 989.156(k). This action will give

producers still holding certificates

additional time to sell their certificates

to handlers, and give handlers

additional time to secure financing to

purchase the certificates from producers

and redeem them with the RAC. Thus,

producers will likely be compensated

for diverting their 2001 production,

which is the intent of the RDP. Section

989.156(k) is changed accordingly for

the 2001 RDP only.

Initial Regulatory Flexibility Analysis

Pursuant to requirements set forth in

the Regulatory Flexibility Act (RFA), the

Agricultural Marketing Service (AMS)

has considered the economic impact of

this action 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

business subject to such actions in order

that small businesses will not be unduly

or disproportionately burdened.

Marketing orders issued pursuant to the

Act, and rules issued thereunder, are

unique in that they are brought about

through group action of essentially

small entities acting on their own

behalf. Thus, both statutes have small

entity orientation and compatibility.

There are approximately 20 handlers

of California raisins who are subject to

regulation under the order and

approximately 4,500 raisin producers in

the regulated area. Small agricultural

firms are defined by the Small Business

Administration (13 CFR 121.201) as

those having annual receipts of less that

$5,000,000, and small agricultural

producers are defined as those having

annual receipts of less than $750,000.

Thirteen of the 20 handlers subject to

regulation have annual sales estimated

to be at least $5,000,000, and the

remaining 7 handlers have sales less

than $5,000,000. No more than 7

handlers, and a majority of producers, of

California raisins may be classified as

small entities.

This rule revises § 989.156(k) of the

order’s rules and regulations regarding

the RDP. Under an RDP, producers

receive certificates from the RAC for

curtailing their production to reduce

burdensome supplies. The certificates

represent diverted tonnage. Producers

sell the certificates to handlers who, in

turn, redeem the certificates with the

RAC for raisins from the prior year’s

reserve pool. This rule extends the date

whereby handlers may redeem 2001

diversion certificates with the RAC from

December 17, 2001, to January 18, 2002,

and applies only to certificates unsold

by producers to handlers as of December

Federal Register / Vol. 66, No. 244 / Wednesday, December 19, 2001 / Rules and Regulations 65425

18, 2001. Authority for this action is

provided in § 989.56(e) of the order.

Regarding the impact of this action on

affected entities, producers who

curtailed 2001 production and have had

trouble selling their diversion

certificates to handlers will have

additional time to sell their certificates

to handlers. Handlers pay producers for

the free tonnage applicable to the

diversion certificate minus the

established harvest cost for the diverted

tonnage. For the 2001 RDP, the industry

average free tonnage price applied to

diversion certificates was $854 per ton,

and applicable harvest costs as

established by the RAC were $340 per

ton. Preliminary volume regulation

percentages for the 2001–02 crop were

announced by the RAC at 56 percent

free and 44 percent reserve. Thus, using

these figures, if a producer was issued

a certificate for 100 tons of raisins, he/

she would be paid $138.24 per ton by

the handler, or a total of $13,824 (($854

per ton × 100 tons × .56) minus (100

tons × $340 per ton harvest cost)).

Extending the deadline allows

producers additional time to sell their

certificate and earn some income for not

producing a 2001 crop.

Regarding the impact of this action on

handlers, handlers experiencing

financial difficulty would have

additional time to arrange for financing

through likely extending lines of credit

with financial institutions. Handlers pay

producers for the free tonnage

applicable to the diversion certificate

minus the $340 per ton harvest cost.

Handlers redeem the certificates for

2000–01 crop NS reserve raisins and

pay the RAC the $340 per ton harvest

cost, plus payment for bins ($20 per ton)

and for receiving, storing, fumigating,

handling (currently totaling $46 per ton)

and inspecting (currently $9.00 per ton)

the tonnage represented on the

certificate (or a total of $415 per ton). In

the above example, the handler would

redeem the 100-ton certificate with the

RAC, pay the RAC $41,500 ($415 per

ton × 100 tons), and receive 44 tons (.44

× 100 tons) of raisins from the 2000–01

reserve pool.

In addition, the $41,500 in the above

example paid by the handler to the RAC

would be allocated to the 2000–01

reserve pool and be used to pay

remaining pool expenses or be

distributed to 2000–01 reserve pool

equity holders (producers). Thus, all

such equity holders could potentially

benefit from this action.

Several alternatives to the

recommended action were considered

by the RAC and/or by the RAC’s

Administrative Issues’ Subcommittee. It

was proposed that the RAC purchase

unsold diversion certificates from

producers. However, the order currently

provides no authority for this. In

addition, there are concerns as to how

this would impact future raisin

diversion programs, in particular,

whether the integrity of the RDP could

be maintained.

It was also proposed that a late fee be

added to handlers’ costs for redeeming

diversion certificates after December 17,

2001. However, the order provides no

authority for such a late charge. Another

option considered was to take no action

and adhere to the current deadline.

Some industry members believe that

there is no guarantee that producers can

sell their harvested crop each season,

and there should likewise be no

‘‘guarantee’’ that producers can sell

their diversion certificates.

There was also consideration of other

extension dates besides January 18,

2002. However, after much deliberation,

the majority of RAC members believe

that extending the deadline to January

18, 2001, was the best solution to this

situation. This date will allow the RAC

sufficient time before it recommends

final volume regulation percentages to

ensure that all redeemed diversion

certificates are properly reported as

2001 acquisitions by handlers and

included in the 2001–02 crop estimate.

This rule imposes no additional

reporting or recordkeeping requirements

on either small or large raisin handlers.

In accordance with the Paperwork

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

Chapter 35), the information collection

requirement referred to in this rule (i.e.,

the application) has been approved by

the Office of Management and Budget

(OMB) under OMB Control No. 0581–

0178. 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. Finally, USDA has not

identified any relevant Federal rules

that duplicate, overlap, or conflict with

this rule.

Further, the RAC’s meeting on

December 11, 2001, and the RAC’s

Administrative Issues Subcommittee

meeting on December 5, 2001, where

this action was deliberated were all

public meetings widely publicized

throughout the raisin industry. All

interested persons were invited to

attend the meetings and participate in

the industry’s deliberations. Finally, all

interested persons are invited to submit

information on the regulatory and

information impact of this action on

small businesses.

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/

fv/moab.html. Any questions about the

compliance guide should be sent to Jay

Guerber at the previously mentioned

address in the FOR FURTHER INFORMATION

CONTACT section.

A 15-day comment period is provided

to allow interested persons to respond

to this rule. Fifteen days is deemed

appropriate because the deadline is

extended until January 18, 2002, and

comments should be received by USDA

prior to that date.

After consideration of all relevant

material presented, including the

information and recommendation

submitted by the RAC 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 rule needs to be in

effect as soon as possible to extend the

December 17, 2001, deadline; (2) this

rule is a relaxation of the existing

regulations because it extends a

deadline; (3) producers are aware of this

action which was recommended by the

RAC at a public meeting; and (4) this

interim final rule provides a 15-day

comment period for written comments

and all comments timely received will

be considered prior to finalization of

this rule.

List of Subjects in 7 CFR Part 989

Grapes, Marketing agreements,

Raisins, Reporting and recordkeeping

requirements.

For the reasons set forth in the

preamble, 7 CFR part 989 is amended as

follows:

PART 989—RAISINS PRODUCED

FROM GRAPES GROWN IN

CALIFORNIA

1. The authority citation for 7 CFR

part 989 continues to read as follows:

Authority: 7 U.S.C. 601–674.

2. In § 989.156, paragraph (k) is

revised to read as follows:

§ 989.156 Raisin diversion program.

* * * * *

(k) Redemption of certificates. Any

handler holding diversion certificates

may redeem such certificates for reserve

pool raisins from the Committee. To

65426 Federal Register / Vol. 66, No. 244 / Wednesday, December 19, 2001 / Rules and Regulations

redeem a certificate, a handler must

present the diversion certificate to the

Committee and pay the Committee an

amount equal to the established harvest

costs plus an amount equal to the

payment for receiving, storing,

fumigating, handling, and inspecting

raisins as specified in § 989.401 for the

entire tonnage shown on the certificate.

Handlers who acquire diversion

certificates from producers shall report

acquisitions of such certificates and

submit them for redemption in a

manner and for the reporting periods

provided in § 989.173(b) for the

acquisition of raisins acquired from

producers. The Committee shall issue a

reserve release entitling the handler to

an amount of reserve pool raisins equal

to the entire tonnage shown on the

certificate. Upon receipt of the diversion

certificate, the Committee shall note on

the certificate that it is cancelled.

Diversion certificates will only be valid

and honored if presented to the

Committee for redemption on or before

December 15 of the crop year for which

they were issued: Provided, That for the

2001 diversion program for Natural

(sun-dried) Seedless raisins, producers

who have not sold certificates to

handlers on or before December 17,

2001, may present them to the

Committee on or before December 21,

2001. The Committee shall verify and

stamp such certificates to indicate that

the certificate is valid until January 18,

2002. Handlers may redeem such

certificates with the RAC on or before

January 18, 2002, in the same manner as

described elsewhere in this paragraph

(k).

* * * * *

Dated: December 14, 2001.

A. J. Yates,

Administrator, Agricultural Marketing

Service.

[FR Doc. 01–31321 Filed 12–17–01; 10:22

am]

BILLING CODE 3410–02–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 99–NE–17–AD; Amendment 39–

12557; AD 2001–25–04]

RIN 2120–AA64

Airworthiness Directives; Honeywell

International Inc. Models LTS101–

600A–2 and LTS101–600A–3

Turboshaft Engines; and LTP101–

600A–1A and LTP101–700A–1A

Turboprop Engines

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Final rule.

SUMMARY: This amendment adopts a

new airworthiness directive (AD), that is

applicable to Honeywell International

Inc. (formerly AlliedSignal Inc. and

Textron Lycoming) Models LTS101–

600A–2 and LTS101–600A–3 turboshaft

engines; and LTP101–600A–1A and

LTP101–700A–1A turboprop engines.

This amendment requires replacing

certain fuel controls that have

beryllium-copper bellows with

improved fuel controls that incorporate

Inconel 718 stainless steel welded

bellows. This amendment is prompted

by a report of an uncommanded power

loss on a Textron Lycoming LTS101

engine due to a corrosion damaged fuel

control bellows. The actions specified

by this AD are intended to prevent the

engine from reducing the fuel flow to

minimum flow resulting in an

uncommanded power loss.

DATES: Effective date January 23, 2002.

ADDRESSES: The information in this AD

may be examined at the Federal

Aviation Administration (FAA), New

England Region, Office of the Regional

Counsel, 12 New England Executive

Park, Burlington, MA.

FOR FURTHER INFORMATION CONTACT:

Robert Baitoo, Aerospace Engineer, Los

Angeles Aircraft Certification Office,

FAA, Transport Airplane Directorate,

3960 Paramount Blvd., Lakewood, CA

90712–4137; telephone (562) 627–5245,

fax (562) 627–5210.

SUPPLEMENTARY INFORMATION: A

proposal to amend part 39 of the Federal

Aviation Regulations (14 CFR part 39) to

include an AD that is applicable to

Honeywell International Inc. (formerly

AlliedSignal Inc. and Textron

Lycoming) Models LTS101–600A–2 and

LTS101–600A–3 turboshaft engines; and

LTP101–600A–1A and LTP101–700A–

1A turboprop engines was published in

the Federal Register on March 12, 2001

(66 FR 14345). That action proposed to

require replacement of fuel controls

with the following part numbers with an

improved design fuel control that

incorporates an Inconel 718 stainless

steel welded bellows.

4–301–098–01

4–301–098–04

4–301–098–10

4–301–098–15

4–301–288–01

4–301–288–04

4–303–023–01

4–303–023–02

4–303–023–03

4–303–023–04

4–303–033–01

4–303–033–02

4–303–033–04

Comments

Interested persons have been afforded

an opportunity to participate in the

making of this amendment. No

comments were received on the

proposal or the FAA’s determination of

the cost to the public. The FAA has

determined that air safety and the

public interest require the adoption of

the rule as proposed.

Economic Analysis

The FAA estimates that 40 engines

installed on aircraft of U.S. registry

would be affected by this proposed AD

and that it would take approximately 3

work hours per engine to accomplish

the proposed actions. The average labor

rate is $60 per work hour. There are no

required parts costs. Based on these

figures, the total cost effect of the

proposed AD on U.S. operators is

estimated to be $7,200.

Regulatory Analysis

This final rule does not have

federalism implications, as defined in

Executive Order 13132, because it

would not have a substantial direct

effect on the States, on the relationship

between the national government and

the States, or on the distribution of

power and responsibilities among the

various levels of government.

Accordingly, the FAA has not consulted

with state authorities prior to

publication of this final rule.

For the reasons discussed above, I

certify that this action (1) is not a

‘‘significant regulatory action’’ under

Executive Order 12866; (2) is not a

‘‘significant rule’’ under the DOT

Regulatory Policies and Procedures (44

FR 11034, February 26, 1979); and (3) if

promulgated, will not have a significant

economic effect, positive or negative, on

a substantial number of small entities

under the criteria of the Regulatory

Flexibility Act. A final evaluation has

been prepared for this action and it is