Unknown. Final rule

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--- schema: federal-register doc_type: fedreg source_file: FR-2014-11-13.xml --- 79 219 Thursday, November 13, 2014 Contents Agricultural Marketing Agricultural Marketing Service RULES Process for Establishing Rates Charged for Services, 67313-67326 2014-26655 Agriculture Agriculture Department See Agricultural Marketing Service See Animal and Plant Health Inspection Service NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 67412 2014-26911 Animal Animal and Plant Health Inspection Service NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Importation of Mangoes from Australia, 67412-67413 2014-26853 Antitrust Division Antitrust Division NOTICES Proposed Final Judgments and Competitive Impact Statements: United States v. Media General, Inc. and Lin Media LLC., 67448-67461 2014-26886 Antitrust See Antitrust Division Arts and Humanities, National Foundation See National Foundation on the Arts and the Humanities Consumer Financial Protection Bureau of Consumer Financial Protection NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals, 67426-67427 2014-26834 Centers Disease Centers for Disease Control and Prevention NOTICES Funding Availability: Ebola Response Outbreak Funding to the International Association of National Public Health Institutes, 67436-67437 2014-26799 Centers Medicare Centers for Medicare & Medicaid Services RULES Medicare Programs: Payment Policies under the Physician Fee Schedule, Revisions, etc., 67548-68010 2014-26183 Children Children and Families Administration NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Objective Work Plan and Objective Progress Report, 67437-67438 2014-26785 Coast Guard Coast Guard RULES Safety Zones: Carquinez Strait Cable Repair Operation, Martinez, CA, 67353-67355 2014-26754 Special Local Regulations: Southern California Annual Marine Events, San Diego Captain of the Port Zone, 67353 2014-26916 Commerce Commerce Department See Foreign-Trade Zones Board See International Trade Administration See National Oceanic and Atmospheric Administration Defense Acquisition Defense Acquisition Regulations System RULES Defense Federal Acquisition Regulations:

Special Contracting Methods, 67356 2014-26599 Defense Department Defense Department See Defense Acquisition Regulations System Energy Department Energy Department See Federal Energy Regulatory Commission Environmental Protection Environmental Protection Agency PROPOSED RULES Air Quality State Implementation Plans; Approvals and Promulgations: Region 4 States; 2008 Lead, 2008 Ozone and 2010 Nitrogen Dioxide Prevention of Significant Deterioration Infrastructure Plans, 67398-67406 2014-26737 Carbon Pollution Emission Guidelines:

Existing Stationary Sources; Electric Utility Generating Units, 67406-67408 2014-26900 National Emission Standards for Hazardous Air Pollutants: Risk and Technology Review for the Mineral Wool and Wool Fiberglass Industries; Wool Fiberglass Area Sources, 68012-68039 2014-25125 Preliminary Regulatory Determinations for the Third Contaminant Candidate List: Public Meeting and Webinar, 67408-67409 2014-26573 Proposed and Modified National Pollutant Discharge Elimination System General Permits:

Facilities that Generate, Treat, and/or Use/Dispose of Sewage Sludge by Land Application, Landfill and Surface Disposal in the EPA Region 8, 67409-67410 2014-26898 NOTICES Proposed Settlement Agreement, Clean Air Act Citizen Suit, 67431-67432 2014-26866 Executive Office of the President See Presidential Documents Federal Aviation Federal Aviation Administration RULES Airworthiness Directives: PILATUS AIRCRAFT LTD. Airplanes, 67343-67346 2014-26704 Piper Aircraft, Inc., 67340-67343 2014-26706 Pilot Age Limit Crew Pairing Requirements, 67346-67347 2014-26783 PROPOSED RULES Airworthiness Directives:

Airbus Helicopters Deutschland GmbH (Previously Eurocopter Deutschland GmbH) (Airbus Helicopters), 67382-67384 2014-26836 The Boeing Company Airplanes, 67379-67382 2014-26837 NOTICES Memorandum of Agreement: Replacing the Griffin - Spalding County Airport (6A2), Griffin, GA, 67531-67532 2014-26800 Petitions for Exemption; Summaries, 67537 2014-26887 Federal Communications Federal Communications Commission RULES Television Broadcasting Services: Mount Vernon, IL, 67355-67356 2014-26796 NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals, 67432-67434 2014-26792 Federal Deposit Federal Deposit Insurance Corporation NOTICES Meetings; Sunshine Act, 67434 2014-27044 Federal Election Federal Election Commission NOTICES Meetings; Sunshine Act, 67434 2014-26996 Federal Energy Federal Energy Regulatory Commission NOTICES Combined Filings, 67428-67429 2014-26758 Federal Highway Federal Highway Administration NOTICES Final Federal Agency Actions on Proposed Highway in California, 67538-67539 2014-26838 Records of Decision:

Virginia Avenue Tunnel Reconstruction Project in Washington, D.C., 67539 2014-26622 Federal Maritime Federal Maritime Commission NOTICES Agreements Filed, 67434-67435 2014-26859 Federal Motor Federal Motor Carrier Safety Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: State Commercial Driver's License Program Plan, 67540-67541 2014-26850 Electronic Logging Devices and Hours of Service Supporting Documents: Research Report on Attitudes of Truck Drivers and Carriers on the Use of Electronic Logging Devices and Driver Harassment, 67541-67542 2014-26851 Federal Reserve Federal Reserve System RULES Policy on Payment System Risk, 67326-67340 2014-26791 Federal Trade Federal Trade Commission NOTICES Proposed Consent Agreements:

MPHJ Technology Investments, LLC, Jay Mac Rust and Farney Daniels, P.C.; Analysis to Aid Public Comment, 67435-67436 2014-26803 Federal Transit Federal Transit Administration NOTICES Environmental Impact Statements; Availability, etc.: I-20 East Transit Initiative Heavy Rail Transit Extension, DeKalb County, GA, 67542-67544 2014-26769 I-20 East Transit Initiative in the City of Atlanta and DeKalb County, GA, 67544 2014-26768 Fish Fish and Wildlife Service RULES Endangered and Threatened Wildlife and Plants:

Adding 20 Coral Species to the List of Endangered and Threatened Wildlife, 67356-67359 2014-26893 NOTICES Permit Applications: Endangered Species, 67442-67443 2014-26833 Food and Drug Food and Drug Administration NOTICES Meetings: Food Advisory Committee; Amendments, 67438-67439 2014-26823 Science Board to the Food and Drug Administration Advisory Committee; Amendments, 67438 2014-26821 Foreign Trade Foreign-Trade Zones Board NOTICES Application for Subzone: Stockton, CA; Modesto and Lathrop, CA, 67413 2014-26891 Approval of Subzone Status:

Kinder Morgan Operating LP C Hawesville, KY, 67413-67414 2014-26890 Proposed Production Activities: Komatsu America Corp., Foreign-Trade Zone

(FTZ)127 - West Columbia, SC, 67414-67415 2014-26889 Geological Geological Survey NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: ISO Geospatial Metadata Editors Registry, 67443-67444 2014-26858 Meetings: National Geospatial Advisory Committee, 67444 2014-26863 Health and Human Health and Human Services Department See Centers for Disease Control and Prevention See Centers for Medicare & Medicaid Services See Children and Families Administration See Food and Drug Administration See Health Resources and Services Administration See National Institutes of Health Health Resources Health Resources and Services Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 67440-67441 2014-26855 Homeland Homeland Security Department See Coast Guard Interior Interior Department See Fish and Wildlife Service See Geological Survey See Land Management Bureau See National Park Service See Surface Mining Reclamation and Enforcement Office Internal Revenue Internal Revenue Service RULES Arbitrage Rebate Overpayments on Tax-Exempt Bonds, 67350-67351 2014-26738 Balanced System for Measuring Organizational and Employee Performance within the Internal Revenue Service, 67351-67352 2014-26739 PROPOSED RULES Balanced System for Measuring Organizational and Employee Performance within the Internal Revenue Service, 67396 2014-26781 International Trade Adm International Trade Administration NOTICES Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Certain Hot-Rolled Carbon Steel Flat Products from the People's Republic of China, 67415-67417 2014-26794 Certain Kitchen Appliance Shelving and Racks from the People's Republic of China, 67423-67424 2014-26789 Chlorinated Isocyanurates from the People's Republic of China, 67424-67425 2014-26795 Drill Pipe from the People's Republic of China, 67417-67419 2014-26787 Welded Line Pipe from the Republic of Korea and the Republic of Turkey, 67419-67423 2014-26897 Meetings: Renewable Energy and Energy Efficiency Advisory Committee, 67425 2014-26805 International Trade Com International Trade Commission NOTICES Investigations; Determinations, Modifications, and Rulings, etc.: Certain Silicon Microphone Packages and Products Containing Same, 67446-67448 2014-26804 Justice Department Justice Department See Antitrust Division NOTICES Proposed Consent Decrees under The Clean Air Act, 67448 2014-26847 Labor Department Labor Department See Occupational Safety and Health Administration NOTICES Efforts by Certain Foreign Countries to Eliminate the Worst Forms of Child Labor, 67461-67462 2014-26845 Land Land Management Bureau NOTICES Plats of Surveys: Idaho, 67444-67445 2014-26828 Maritime Maritime Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Request for Waiver of Service Obligation, Request for Deferment of Service Obligation, Application for Review, 67544 2014-26846 NASA National Aeronautics and Space Administration RULES Profit and Fee under Federal Financial Assistance Awards, 67347-67349 2014-26856 PROPOSED RULES Discrimination on the Basis of Disability in Federally Assisted Programs and Activities, 67384-67396 2014-26543 NOTICES Meetings: Human Exploration and Operations Committee, 67468 2014-26775 National Space-Based Positioning, Navigation, and Timing Advisory Board, 67469 2014-26774 Technology, Innovation and Engineering Committee, 67468-67469 2014-26773 National Endowment for the Arts NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 67470-67471 2014-26820 National Foundation National Foundation on the Arts and the Humanities See National Endowment for the Arts NOTICES Meetings: Arts Advisory Panel, 67469-67470 2014-26793 National Institute National Institutes of Health NOTICES Meetings: National Center for Complementary and Alternative Medicine, 67442 2014-26751 National Eye Institute, 67441-67442 2014-26752 National Oceanic National Oceanic and Atmospheric Administration RULES Endangered and Threatened Species: Puget Sound/Georgia Basin Distinct Population Segments of Yelloweye Rockfish, Canary Rockfish and Bocaccio; Designation of Critical Habitat, 68042-68087 2014-26558 Fisheries of the Exclusive Economic Zone Off Alaska: Pacific Cod by Vessels Using Pot Gear in the Central Regulatory Area of the Gulf of Alaska, 67376 2014-26865 Fisheries of the Northeastern United States: Northeast Groundfish Fishery; Emergency Gulf of Maine Cod Management Measures, 67362-67376 2014-26844 International Fisheries: Western and Central Pacific Fisheries for Highly Migratory Species; Fishing Effort Limits in Purse Seine Fisheries for 2014, 67359-67362 2014-26830 PROPOSED RULES Fisheries of the Caribbean, Gulf, and South Atlantic: Aquaculture, 67411 2014-26801 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: National Saltwater Angler Registry, 67425-67426 2014-26786 National Park National Park Service NOTICES Environmental Impact Statements; Availability, etc.: Cottonwood Cove and Katherine Landing Development Concept Plans, Lake Mead National Recreation Area, AZ and NV, 67445-67446 2014-26824 Meetings: Boston Harbor Islands National Recreation Area Advisory Council, 67446 2014-26921 Committee for the Preservation of the White House, 67446 2014-26923 National Science National Science Foundation NOTICES Meetings: National Science Board, 67471 2014-26806 Occupational Safety Health Adm Occupational Safety and Health Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Acrylonitrile Standard, 67463-67465 2014-26868 Cotton Dust Standard, 67462-67463 2014-26869 Shipyard Employment Standards, 67465-67466 2014-26870 Meetings: National Advisory Committee on Occupational Safety and Health, 67467-67468 2014-26797 Personnel Personnel Management Office PROPOSED RULES Federal Long Term Care Insurance Program Eligibility Changes, 67377-67379 2014-26779 Presidential Documents Presidential Documents PROCLAMATIONS Special Observances: Veterans Day (Proc. 9208), 67309-67310 2014-26994 World Freedom Day (Proc. 9209), 67311-67312 2014-26995 ADMINISTRATIVE ORDERS Iran; Continuation of National Emergency (Notice of November 12, 2014), 68089-68091 2014-27105 Securities Securities and Exchange Commission NOTICES Applications: AllianceBernstein Cap Fund, Inc., et al., 67479-67485 2014-26816 Eaton Vance Management, et al., 67471-67479 2014-26817 Self-Regulatory Organizations; Proposed Rule Changes: BATS Exchange, Inc., 67519-67520 2014-26812 BOX Options Exchange LLC, 67520-67526 2014-26811 NASDAQ OMX BX, Inc., 67526-67529 2014-26808 NASDAQ OMX PHLX LLC, 67504-67507 2014-26840 NASDAQ Stock Market LLC, 67495 2014-26813 New York Stock Exchange, LLC, 67508-67519 2014-26815 NYSE Arca, Inc., 67488-67491 2014-26842 NYSE MKT LLC, 67496-67498 2014-26843 Trading Suspension Orders: Kolasco Corp., 67529 2014-26959 Small Business Small Business Administration NOTICES Meetings: Interagency Task Force on Veterans Small Business Development, 67530 2014-26802 Veterans Business Affairs Advisory Committee, 67529-67530 2014-26777 Social Social Security Administration RULES Revised Medical Criteria for Evaluating Genitourinary Disorders; Correction, 67349-67350 2014-26745 State Department State Department NOTICES Culturally Significant Objects Imported for Exhibition: Collecting Paradise -- Buddhist Art of Kashmir and its Legacies, 67530 2014-26902 Picturing Mary -- Woman, Mother, Idea, 67530-67531 2014-26901 Meetings: U.S. Advisory Commission on Public Diplomacy, 67531 2014-26904 Surface Mining Surface Mining Reclamation and Enforcement Office PROPOSED RULES West Virginia Regulatory Program, 67396-67398 2014-26659 Surface Transportation Surface Transportation Board NOTICES Discontinuance of Service Exemptions: Norfolk Southern Railway Co. from Clermont, Brown and Adams Counties, OH; Correction, 67544-67545 2014-26827 Transportation Department Transportation Department See Federal Aviation Administration See Federal Highway Administration See Federal Motor Carrier Safety Administration See Federal Transit Administration See Maritime Administration See Surface Transportation Board NOTICES Guidance: Accelerated Decisionmaking in Environmental Reviews, 67531 2014-26731 Treasury Treasury Department See Internal Revenue Service U.S. China U.S.-China Economic and Security Review Commission NOTICES Meetings: Official Public Release of the Commission's 2014 Annual Report to Congress, 67545 2014-26892 Veteran Affairs Veterans Affairs Department NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Disability Benefits Questionnaires - Group 3, 67545-67546 2014-26767 Separate Parts In This Issue Part II Health and Human Services Department, Centers for Medicare & Medicaid Services, 67548-68010 2014-26183 Part III Environmental Protection Agency, 68012-68039 2014-25125 Part IV Commerce Department, National Oceanic and Atmospheric Administration, 68042-68087 2014-26558 Part V Presidential Documents, 68089-68091 2014-27105 Reader Aids Consult the Reader Aids section at the end of this page for phone numbers, online resources, finding aids, reminders, and notice of recently enacted public laws. To subscribe to the Federal Register Table of Contents LISTSERV electronic mailing list, go to http://listserv.access.gpo.gov and select Online mailing list archives, FEDREGTOC-L, Join or leave the list (or change settings); then follow the instructions. 79 219 Thursday, November 13, 2014 Rules and Regulations DEPARTMENT OF AGRICULTURE Agricultural Marketing Service 7 CFR Parts 27, 28, 29, 51, 52, 54, 56, 58, 62, 70, 75, and 91 [Document Number AMS-LPS-13-0050] RIN 0581-AD36 Process for Establishing Rates Charged for AMS Services AGENCY: Agricultural Marketing Service, USDA. ACTION: Final rule. SUMMMARY: The Agricultural Marketing Service

(AMS)is amending its regulations to provide for a set of standardized formulas by which fees are calculated. The fees are calculated using formulas to account for all costs incurred by AMS in providing these services. Each year, fees will be announced in a notice in the **Federal Register** by June 1 and take effect at the start of the fiscal year, crop year, or as required by specific laws. This action provides greater transparency to the customers we serve as to how the fees are derived. The standardized formulas will be used to calculate fees that AMS charges for providing voluntary grading, inspection, certification, auditing and laboratory services for a variety of agricultural commodities including meat and poultry, fruits and vegetables, eggs, dairy products, and cotton and tobacco. The fees will also apply to those persons requesting such services including producers, handlers, processors, importers and exporters. Fees charged for inspection of fruits, vegetables, and specialty crops subject to the Agricultural Marketing Agreement Act of 1937 are also affected by this rule. Provisions of this rule do not supersede rates established by Memoranda of Understanding, Marketing Orders, or by cooperative agreements already in place. Furthermore, the cotton program will continue to consult with its industry before rates are established. DATES: *Effective Date:* This rule is effective December 15, 2014. FOR FURTHER INFORMATION CONTACT: For further information contact, Sonia N. Jimenez, AMS, U.S. Department of Agriculture, Room 3069-S, 1400 Independence Ave. SW., Washington, DC 20250; telephone

(202)720-5115, fax

(202)720-8477. SUPPLEMENTARY INFORMATION: Background The Agricultural Marketing Act of 1946, as amended,

(AMA)(7 U.S.C. 1621-1627), provides for the collection of fees to cover costs of various inspection, grading, certification or auditing services covering many agricultural commodities and products. The AMA also provides for the recovery of costs incurred in providing laboratory services. The Cotton Statistics and Estimates Act (7 U.S.C. 471-476) and the U.S. Cotton Standards Act (7 U.S.C. 51-65) provide for classification of cotton and development of cotton standards materials necessary for cotton classification. The Cotton Futures Act (7 U.S.C. 15b) provides for futures certification services and the Tobacco Inspection Act (7 U.S.C. 511-511s) provides for tobacco inspection and grading. These Acts also provide for the recovery of costs associated with these services. This action sets formulas to calculate these fees and any other fee currently being charged under these statutes. The table below shows the program regulations and types of fees charged for AMS services. Cotton Fees Cotton Statistics and Estimates Act (7 U.S.C. 471-476) U.S. Cotton Standards Act (7 U.S.C. 51-65) Cotton Futures Act (7 U.S.C. 15b) 7 CFR Part 27—Cotton Classification Under Cotton Futures Legislation Subpart A—Regulations; §§ 27.80-27.90; Costs of Classifications and Micronaire 7 CFR Part 28—Cotton Classing, Testing, and Standards Subpart A—Regulations Under the United States Cotton Standards Act; §§ 28.115-28.126; Fees and Costs Subpart D—Cotton Classification and Market News Service for Producers; §§ 28.909; Costs §§ 28.910; Classification of samples and issuance of classification data §§ 28.911; Review classification Dairy Fees The Agricultural Marketing Act of 1946, as amended,

(AMA)(7 U.S.C. 1621-1627) 7 CFR Part 58—Grading and Inspection, General Specifications for Approved Plants and Standards for Grades of Dairy Products Subpart A—Regulations Governing the Inspection and Grading Services of Manufactured or Processed Dairy Products; §§ 58.38-58.46; Fees and Charges Fruit and Vegetable Fees The Agricultural Marketing Act of 1946, as amended,

(AMA)(7 U.S.C. 1621-1627) 7 CFR Part 51—Fresh Fruits, Vegetables and Other Products (Inspection, Certification, and Standards) Subpart A—Regulations; §§ 51.37-51.44; Schedule of Fees and Charges at Destination Markets §§ 51.45; Schedule of Fees and Charges at Shipping Point Areas 7 CFR Part 52—Processed Fruits and Vegetables, Processed Products Thereof, and Other Processed Food Products Subpart—Regulations Governing Inspection and Certification; §§ 52.41—52.51; Fees and Charges Meat and Livestock Fees The Agricultural Marketing Act of 1946, as amended,

(AMA)(7 U.S.C. 1621-1627) 7 CFR Part 54—Meats, Prepared Meats, and Meat Products (Grading, Certification, and Standards) Subpart A—Regulations; §§ 54.27-54.28; Charges for Service 7 CFR Part 54—Meats, Prepared Meats, and Meat Products (Grading, Certification, and Standards) Subpart C—Regulations Governing the Certification of Sanitary Design and Fabrication of Equipment Used in the Slaughter, Processing and Packaging of Livestock and Poultry Products; §§ 54.1028; Charges for Service 7 CFR Part 62—Livestock, Meat and Other Agricultural Commodities (Quality Systems Verification Programs) Subpart A—Quality Systems Verification Definitions §§ 62.300; Fees and Other Costs for Service 7 CFR Part 75—Regulations for Inspection and Certification of Quality of Agricultural and Vegetable Seeds §§ 75.41; General Poultry Fees The Agricultural Marketing Act of 1946, as amended,

(AMA)(7 U.S.C. 1621-1627) 7 CFR Part 56—Voluntary Grading of Shell Eggs Subpart A—Grading of Shell Eggs; §§ 56.45-56.54; Fees and Charges 7 CFR Part 70—Voluntary Grading of Poultry and Rabbit Products Subpart A—Grading of Poultry and Rabbit Products; §§ 70.70-70.78; Fees and Charges Science and Technology Fees The Agricultural Marketing Act of 1946, as amended,

(AMA)(7 U.S.C. 1621-1627) 7 CFR Part 91—Services and General Information (Science and Technology) Subpart I—Fees and Charges; §§ 91.37-91.45 Tobacco Fees Tobacco Inspection Act (7 U.S.C. 511-511s) 7 CFR Part 29—Tobacco Inspection Subpart B—Regulations; §§ 29.123-29.129; Fees and Charges Subpart F—Policy Statement and Regulations Governing the Identification and Certification of Non-quota Tobacco Produced and Marketed in Quota Area; §§ 29.9251; Fees and Charges Grading, inspection and verification programs facilitate the movement of agricultural products through marketing channels—from growers to wholesalers, retailers and consumers—in a quick, efficient, and equitable manner. These services include the grading, inspection, or certification of quality factors in accordance with established U.S. Grade Standards; audits or accreditation according to International Organization for Standardization

(ISO)standards and/or Hazard Analysis and Critical Control Point (HACCP) principles; and other marketing claims. The quality grades serve as a basis to reflect the value of agricultural commodities to both producers and consumers. AMS' grading and quality verification and certification, audit and accreditation, plant process and equipment verification, and laboratory approval services are voluntary tools paid for by the users on a fee-for-service basis. The agriculture industry can use these tools to promote and communicate the quality of agricultural commodities to consumers. Laboratory services are provided for analytic testing, including but not limited to chemical, microbiological, biomolecular, and physical analyses. Approximately 70 percent of AMS' operational budget is derived from fees assessed for services provided to agricultural industries. Changes in fee-for-service rates may result from fluctuating customer needs, increases in employee salary and benefit expenses, inflationary impact on non-labor operating expenses and fixed costs, and/or uncollected revenue (bad debt). Prior to this action, each AMS program individually proposed a fee change when a revenue shortfall was anticipated for a specific program or activity. As a result, these changes did not appear in a single unified fee schedule. Lack of certainty as to when annual fees would be announced may affect fiscal planning for the users of the services, especially if fees are changed in the middle of a contract or harvest season. In addition, because of the separate and repetitive use of the agency rulemaking process, programs experienced delays in recovering the full cost of the services they provided. As a result, a number of AMS programs amended their regulations to provide for multi-year annual fee changes that were established by a single rulemaking action. While this enabled the Agency to collect revenue based on a revised fee each year, estimates used to set the projected annual rates did not always result in the Agency collecting revenues sufficient to cover its costs. Instead, in some instances, the Agency recovered partial costs. In order to provide both transparency and predictability to the industries served and to allow the Agency to effectively plan for staffing, investments in infrastructure, and other resources, AMS is amending its regulations to provide for a set of standardized formulas by which fees are calculated. This process will use formulas established to determine fees for AMS's grading, inspection, certification, auditing, and laboratory services that cover expected costs while maintaining a reasonable reserve. AMS programs are required to sustain a certain minimum level of reserve funds in order to maintain fiscal responsibility should the program area undergo closure. Each program reserve level is affected by factors such as number of employees, salaries, benefits, contracted obligations, and other items. Currently, AMS performs financial analyses on an annual basis to determine whether the current fees are adequate to recover the costs incurred for providing these services. Historical or prior year cost and workload data, along with applicable projections are used to generate estimates of future obligations and revenues. This rule specifies that the rates be based on the actual cost and workload data of the previous fiscal year(s) or accounting period(s) (e.g. crop year) used by respective programs. On the basis of these analyses and using the formulas, AMS will determine the fees necessary to sustain program services. This increases predictability and provides information for planning purposes for the industries utilizing AMS user fee services. The components (costs) that AMS will use to calculate the rates for services are the same costs used in calculating past rates. As required by the Cotton Statistics and Estimates Act (7 U.S.C. 471-476), consultations regarding the establishment of the fee for cotton classification with U.S. cotton industry representatives will continue. Representatives of all segments of the cotton industry, including producers, ginners, bale storage facility operators, merchants, cooperatives, and textile manufacturers will continue to be addressed in various industry-sponsored forums. Provisions of this rule will not supersede rates established by Memoranda of Understanding, Marketing Orders, cooperative agreements or other similar instruments. Under MOU, cooperative agreements, and similar instruments, fees are established based on specific agreements specified with an individual entity such as a State or university. The outcome of this action is a transparent system for establishing fee rates for all AMS user fee programs, whereby financial and resource needs for continued operation are reviewed on a pre-determined cycle, using established formulas. This will avoid financial crises that may occur when reserve funds are rapidly depleted due to unanticipated business events, and will allow the Agency to more quickly adjust the cost of the services it provides. The information will also greatly benefit AMS customers by allowing them to better plan for the cost of AMS services. Currently, AMS publishes a rule for each of the service fees it collects. This rulemaking action supports the government's initiative to streamline processes and the Department's goal of formalizing processes to integrate openness, transparency, participation and collaboration. Final Rule With this action, AMS is amending its regulations in 7 CFR parts 27, 28, 29, 51, 52, 54, 56, 58, 62, 70, 75, and 91 by making public the formulas it uses to calculate user-fee rates. Making the standardized formulas a part of the regulations allows AMS to announce annual fees in a yearly **Federal Register** notice, starting with the effective date of this rule and for subsequent years, by June 1 each year or as required by specific laws. The fee rates will be effective at the beginning of the following fiscal year, crop year, or as required by specific laws and identified in the yearly notice. The yearly notice will include all rates charged by AMS including some that are not currently part of regulations. The yearly notice will include a per-hour rate and, in some instances, the equivalent per-unit cost. The per-unit cost will be provided to facilitate understanding of the costs associated with the services to the industries that historically use a unit-cost basis for payment. In those cases where per-unit cost is necessary, the formulas will have an additional step to convert per hour costs to per unit costs. This process is currently followed for cotton and some fruit and vegetable user fee services. Travel costs are also part of the costs that are charged for user fee services. Currently, in some instances, travel costs are already included in the fee charged for service. In other instances, travel costs are added to the fee. In both instances, travel costs are charged to the recipient of the service. The annual notice will maintain the same procedure currently used for recovering travel costs. AMS is also making several administrative changes and corrections to language in the regulations that is obsolete, such as changing “diskette” to “electronic means”. Definitions In order to provide additional clarity, AMS defines the following terms used throughout this document as follows: *Bad Debt* —Accounts receivable that will likely remain uncollectable and will be written off. *Benefits* —various non-wage compensation provided to employees in addition to their normal wages or salaries. Examples of items included in this category are health and unemployment insurance, retirement, workers compensation, Thrift Savings Plan contributions, and other similar compensation. *Cost of Living Adjustment* —the cost of maintaining a certain standard of living based on the economic assumptions in the Office of Management and Budget (OMB), “Update to Civilian Position Full Fringe Benefit Cost Factor, Federal Pay Raise Assumptions, and Inflation Factors used in OMB Circular A-76, Performance of Commercial Activities”. *Direct Hours* —the regular hours worked by employees of the Agency. This does not include overtime or holiday hours. *Direct Pay* —monetary compensation paid to employees of AMS for work performed. Pay is based on the U.S. Office of Personnel Management pay rate tables. It may include night and Sunday differential costs. *Holiday* —the official days of the calendar year established by law (5 U.S.C. 6103) or identified by Executive Order as Federal holidays. *Hour* —measure by which grading, certification, inspection, classification, laboratory or other services cost is based and expenses are charged. *Indirect Cost* —this cost includes program and AMS activities that support the services provided to the industry. Another common term for this cost category is “overhead”. *Operating Reserve* —funds above expected obligations required to effectively manage uncertainties in demand and cash flow timing. *Operating Cost* —costs attributed to performing grading, inspection, certification, or laboratory services duties (i.e. training, equipment, and other such costs), plus operating reserve, plus indirect costs. *Overtime* —hours worked in excess of the approved schedule. Work performed after the first 8 hours per day or 40 hours per week is considered overtime. *Regular Rate* —the cost per hour for work provided in accordance with an applicant contract. Under Federal labor laws, this rate applies to the first 8 hours per day, or first 40 hours worked per week by AMS employees. *Unit* —any measurement that there is one of. For example, one bale of cotton or one truck load of vegetables. Formulas for Regular, Overtime, and Holiday Rates With this rulemaking, AMS amends its regulations to provide a set of standardized formulas by which fees are calculated. The methodology used to calculate and implement the fees charged by AMS user-funded programs will be specified in 7 CFR parts 27, 28, 29, 51, 52, 54, 56, 58, 62, 70, 75, and 91. AMS will use these formulas to calculate annual fee rates starting with the effective date of this rule and for subsequent years. AMS will publish the specific formulas used to calculate service fees. AMS intends to announce the actual annual fee rates in a **Federal Register** notice by June 1 each year or as required by specific laws. These fees will be effective at the beginning of the following fiscal year, crop year, or as required by specific laws. Salary, hours, and most rates used in the formulas will be based on the prior fiscal year's (or applicable accounting period or historical data) actual costs and hours. AMS will round the final rates up to make the amounts divisible by the quarter hour (15 minutes). Fifteen minutes will be the minimum charge for services covered by these rates. 1 Travel costs may be part of a fee or may be added to the calculated fee. 1 The current minimum charge for some services covered by these rates is 30 minutes. Currently, some fees are charged on a per unit basis and others are charged on a per hour basis. AMS will continue to provide costs based on a per hour and per unit basis to maintain consistency. For cotton and some fruit and vegetable programs, per unit costs are determined after converting the hourly costs to units. AMS is establishing the following formulas: *Regular Rate* —The total AMS grading, inspection, certification, classification, audit, or laboratory service program personnel direct pay divided by direct hours for the previous year, which is then multiplied by the next year's percentage of cost of living increase, plus the benefits rate, plus the operating rate, plus the allowance for bad debt rate. If applicable, travel expenses may also be added to the cost of providing the service. An example of the calculation will look like this: [FY 2013 Direct Pay divided by Total Direct Hours ($2,663,407/82,985) = $32.10, plus ($32.10 * 1.7% (2014 cost of living increase)) = $32.64 + $10.04 (benefits rate) + $28.90 (operating rate) + $.01 (bad debt allowance rate) = $71.59 (rounded to $71.60); rounding is done to reflect billable quarter hour increments of 15 minutes. If applicable, travel expenses may also be added. *Overtime Rate* —The total AMS grading, inspection, certification, classification, audit, or laboratory service program personnel direct pay divided by direct hours, which is then multiplied by the next year's percentage of cost of living increase and then multiplied by 1.5, plus the benefits rate, plus the operating rate, plus an allowance for bad debt. If applicable, travel expenses may also be added to the cost of providing the service. An example of the calculation will look like this: [FY 2013 Direct Pay divided by Total Direct Hours ($2,663,407/82,985) = $32.10, plus ($32.10 * 1.7% (2014 cost of living increase)) = $32.64, multiplied by 1.5 ($32.64 * 1.5 (overtime rate)) = $48.96 + $10.04 (benefits rate) + 28.90 (operating rate) + $.01 (bad debt allowance rate) = $87.91 (rounded to $87.92); rounding is done to reflect billable quarter hour of 15 minutes. If applicable, travel expenses may also be added. *Holiday Rate* —The total AMS grading, inspection, certification, classification, audit, or laboratory service program personnel direct pay divided by direct hours, which is then multiplied by the next year's percentage of cost of living increase and then multiplied by 2, plus benefits rate, plus the operating rate, plus an allowance for bad debt. If applicable, travel expenses may also be added to the cost of providing the service. An example of the calculation will look like this: [FY 2013 Direct Pay divided by Total Direct Hours ($2,663,407/82,985) = $32.10, plus ($32.10 * 1.7% (2014 cost of living increase)) = $32.64, multiplied by 2 ($32.64 * 2 (double time or Holiday rate)) = $65.28 + $10.04 (benefits rate) + $28.90 (operating rate) + $.01 (bad debt allowance rate) = $ 104.23(rounded to $104.24); rounding is done to reflect billable quarter hour increments of 15 minutes. If applicable, travel expenses may also be added. Formula calculations are based on prior fiscal year's actual costs or historical costs, workload data, projection of expenses impacting program costs, cost of living increase and inflation. Cost of living increases and inflation factors are based on the economic assumptions from 2013-2023 which have been updated in the Office of Management and Budget's

(OMB)FY 2014 Mid-Session Review. Rather than codify a reference to this OMB budget document in this rule, each year AMS intends to use the most recent economic factors released by OMB for budget development purposes to determine cost impacts for these user fee activities. Formulas for the Benefits, Operating, and Allowance for Bad Debt Rates AMS will derive the components of the formulas above, using previous fiscal year's actual costs/historical costs, as follows: *Benefits Rate* —The total AMS grading, inspection, classification, certification, audit, or laboratory service program direct benefits costs divided by the total hours worked (regular, overtime, and holiday), which is then multiplied by the next calendar year's percentage cost of living increase. An example of the calculation will look like this: [2013 Direct Benefits cost/(Total hours + Total Overtime hours + Total Holiday hours) ($819,207/82,985)] = $9.87, plus ($9.87 * 1.7% (2014 Cost of Living)) = $10.04. *Operating Rate* —The total AMS grading, inspection, classification, certification, audit, or laboratory service program operating costs divided by total hours worked (regular, overtime, and holiday), which is then multiplied by the percentage of inflation. An example of the calculation will look like this: [2013 Total Operating Costs/(Total hours + Total Overtime hours + Total Holiday hours) ($2,351,857/82,985)] = $28.34, plus ($28.34 * 2% (2014 Inflation)) = $28.90. *Allowance for Bad Debt Rate* —Total AMS grading, inspection, classification, certification, audit, or laboratory service program allowance for bad debt divided by total hours worked (regular, overtime, and holiday). An example of the calculation will look like this: [2013 Total Bad Debt cost/(Total hours + Total Overtime hours + Total Holiday hours) ($1,000/82,985) = $ 0.01 As noted above, the formulas reflect that the cost of providing services include both direct and indirect costs. Direct costs include the cost of salaries, employee benefits, and if applicable, travel and some operating costs. Indirect or overhead costs include the cost of program and Agency activities supporting the services provided to the industry. Indirect cost expenditures are allocated across the Agency for each direct hour of grading, inspection, classification, certification, auditing, or laboratory service provided. For purposes of these formulas, indirect costs have been included as part of operating costs. Comments AMS received two comments on the proposed rule. One commenter asked whether the industry will be notified as to the amounts of each factor within the calculation, including the factors within the benefits rate and the operating rate; whether the Department will publish a final hourly rate for regular, overtime, and holiday rates; and when will the new fee schedule become effective and put into practice. The categories of costs included in each fee were stated in the proposed rule and are part of this final rule. The specific amounts within each factor will not be published in the annual notice. However, this information is available upon request from the specific AMS program. The final hourly rate for regular, overtime, and holiday rates will be part of the annual notice. Each year, fees will be announced in a notice in the **Federal Register** by June 1 and take effect at the start of the fiscal year, crop year, or as required by specific laws. The yearly notice will identify the start date for each fee. AMS plans to have these rates in place in FY 15. Another commenter recommended that application of this uniform fee regulation maintain the calculation and reporting of the cotton classing fee on a per sample basis and that the procedure used by the AMS Cotton Division maintain the flexibility with the formula to account for an adequate reserve and projection of classing volume. As stated in the proposed rule and earlier in this rule, the yearly notice will include a per-hour rate and, in some instances, the equivalent per-unit cost which is the same as per sample basis. The per-unit (or per sample) cost will be provided to facilitate understanding of the costs associated with the services to the industries that historically use a unit-cost basis for payment. An adequate reserve and work load (volume) are part of the standardized formulas as they have been in the past. No changes were made to the proposed rule based on comments received. Executive Order 12866 and Executive Order 13563 Executive Orders 12866 and 13563 direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This rule is not a significant regulatory action under section 3(f) of Executive Order 12866, Regulatory Planning and Review, as supplemented by Executive Order 13563. The Office of Management and Budget has not reviewed this rule under these Orders. Executive Order 13175 This rule has been reviewed in accordance with the requirements of Executive Order 13175, Consultation and Coordination with Indian Tribal Governments. The review reveals that this regulation will not have substantial and direct effect on Tribal governments and will not have significant Tribal implications. Executive Order 12988 This rule has been reviewed under Executive Order 12988, Civil Justice Reform. This rule:

(1)Has no retroactive effect; and

(2)does not require administrative proceedings before parties may file suit in court challenging this rule. Regulatory Flexibility Act The Regulatory Flexibility Act

(RFA)(5 U.S.C. 601-612) requires agencies to consider the economic impact of each rule on small entities and evaluate alternatives that would accomplish the objectives of the rule without unduly burdening small entities or erecting barriers that would restrict their ability to compete in the market. The purpose is to fit regulatory actions to the scale of businesses subject to the action. Section 605 of the RFA allows an agency to certify a rule, in lieu of preparing an analysis, if the rulemaking is not expected to have a significant economic impact on a substantial number of small entities. Most small agricultural service firms have been defined by the Small Business Administration

(SBA)(13 CFR 121.201) as those having annual receipts of less than $7,000,000. For certain types of businesses (e.g., dairy, egg, and meat processing; handlers of produce), the SBA considers a small entity as those that employ less than 500 employees. The grading, inspection, certification and auditing services provided under these regulations are voluntary. 2 3 The benefits of using grading, inspection, certification, auditing, and laboratory services outpace the costs of obtaining these services. These services are used by meat and poultry establishments, fruit and vegetable handlers and processors, egg processing plants, dairy processors, users of cotton and tobacco program services, importers and exporters of the above commodities, and other interested persons to determine quality and prices of their products. 2 Currently, there is no mandatory inspection and grading of tobacco under the Tobacco Inspection Act (7 U.S.C. 511-511s). 3 Fees charged for inspection of fruits, vegetables, and specialty crops subject to the Agricultural Marketing Agreement Act of 1937 also would be affected by this rule. AMS estimates that approximately 849 entities use voluntary meat grading and certification services. This estimate includes 413 egg, poultry, and rabbit packing plants that use the USDA grade shield. Of these 413 plants, approximately fifteen percent would be considered a small business under the SBA criteria. The remaining 436 entities includes livestock slaughterers, brokers, meat and other processors, distributors, organic certification companies, trade associations, State and Federal entities, and livestock producers and feeders. Of these 436 entities, approximately 70 percent are considered a small business under the SBA criteria. AMS estimates that 60 cotton merchants use AMS services for cotton futures classification, 20,000 cotton producers and 637 cotton gins use AMS services for normal cotton classification, and 125 tobacco customers use AMS services. Of these entities, approximately 80 percent are considered a small business under the SBA criteria. AMS estimates that, over the last two fiscal years, we provided user fee services to an average of 2,308 fruit and vegetable companies for fresh products. AMS estimates that, over the last two fiscal years, we provided user fee services to an average of 1,087 fruit and vegetable companies for processed products. We estimate that approximately 98 percent of these 3,395 companies are considered a small business under the SBA criteria. The number of entities referenced above includes those subject to the provisions of the Agricultural Marketing Agreement Act of 1937. AMS estimates that 360 dairy plants use AMS' dairy grading and inspection services. We believe that approximately 96 percent of these plants are considered a small business under the SBA criteria. AMS considered the economic impact of this action on these small entities. The formulas will have a minimal impact on entities that request these services. The difference in fee rates are negligible since the costs used in the formulas to calculate the current and future fees will remain the same. For example, it is expected that the Dairy user fee will change from $76 per hour to $78 per hour under the proposed formulas. AMS has not updated several of its programs' user fees for a number of years. For those fees that have not been updated recently, there may be a change in fees. These possible changes will be the result of using current economic data and cost estimates to calculate the fee rates. AMS will take into consideration, when appropriate, economic and industry conditions before adjusting fees. The process will maintain up-to-date fees. By including the formulas used to calculate annual user fee rates in the regulations, the Agency streamlines the rulemaking process to help ensure that fees are effective at the beginning of each fiscal year or other period as required by law. Fees will cover inflation and national and locality pay raises but will not support any new budgetary initiative. Any cost changes are similar to other changes that the industry would experience because of inflation and wage increases. The outcome of this rule will be a transparent system for establishing fee rates for all AMS user fee programs, whereby financial and resource needs for continued operation are reviewed on a pre-determined cycle, using established formulas. This will avoid financial crises that occur when reserve funds are rapidly depleted due to unanticipated business events, and will allow the Agency to more quickly adjust the cost of the services it provides. The information will also greatly benefit AMS customers by allowing them to better plan for the cost of AMS services. The total volume of commodities graded, inspected and certified under the associated regulations in 2012 was approximately 91 billion pounds. An overall increase in cost per pound of product associated with the new fees is estimated at $.0002. Even in competitive industries such as fruit and vegetables, meat, poultry, dairy and eggs, this amount of increase in costs will have an insignificant impact on profits and processes. Accordingly, AMS certifies that this rule will not have a significant economic impact on a substantial number of small entities. Paperwork Reduction Act This rule does not contain any new information collection or recordkeeping requirements that are subject to the Office of Management and Budget

(OMB)approval under the Paperwork Reduction Act, 44 U.S.C. Chapter 35. E-Government Act AMS and USDA are committed to achieving the purposes of the E-Government Act (44 U.S.C. 3601, et seq.) by, among other things, promoting the use of the Internet and other information technologies and providing increased opportunities for citizen access to Government information and services, and for other purposes. Public awareness of all segments of rulemaking and policy development is important. Consequently, in an effort to ensure that all interested parties, including minorities, women, and persons with disabilities are aware of this rule, AMS will announce it online and make copies of this **Federal Register** publication available through the AMS Web page located at *http://www.ams.usda.gov/AMSv1.0/.* In addition, AMS offers a subscription service which provides automatic and customized access to selected agricultural commodity news and information. Further, each program will make a concerted effort to inform their respective industries while performing inspections and providing services. Finally, USDA has not identified any relevant Federal rules that duplicate, overlap, or conflict with this rule. List of Subjects 7 CFR Part 27 Commodity futures, Cotton. 7 CFR Part 28 Administrative practice and procedure, Cotton, Reporting and recordkeeping requirements, Warehouses. 7 CFR Part 29 Administrative practice and procedure, Advisory committees, Government publications, Imports, Pesticide and pests, Reporting and recordkeeping requirements, Tobacco. 7 CFR Part 51 Agricultural commodities, Food grades and standards, Fruits, Nuts, Reporting and recordkeeping requirements, Vegetables. 7 CFR Part 52 Food grades and standards, Food labeling, Frozen foods, Fruits, Reporting and recordkeeping requirements, Vegetables. 7 CFR Part 54 Food grades and standards, Food labeling, Meat and meat products, Poultry and poultry products. 7 CFR Part 56 Eggs and egg products, Food grades and standards, Food labeling, Reporting and recordkeeping requirements. 7 CFR Part 58 Dairy products, Food grades and standards, Food labeling, Reporting and recordkeeping requirements. 7 CFR Part 62 Food grades and standards, Food labeling, Meat and meat products. 7 CFR Part 70 Food grades and standards, Food labeling, Poultry and poultry products, Rabbits and rabbit products, Reporting and recordkeeping requirements. 7 CFR Part 75 Administrative practice and procedure, Agricultural commodities, Reporting and recordkeeping requirements, Seeds, Vegetables. 7 CFR Part 91 Administrative practice and procedure, Agricultural commodities, Laboratories, Reporting and recordkeeping requirements. For the reasons set forth in the preamble, 7 CFR chapter I is amended as follows: PART 27—COTTON CLASSIFICATION UNDER COTTON FUTURES LEGISLATION 1. The authority citation for part 27 continues to read as follows: Authority: 7 U.S.C. 15b, 7 U.S.C. 473a-b, 7 U.S.C. 1622(g). 2. Revise § 27.80 by adding paragraphs (a), (b), and

(c)and removing paragraph

(d)to read as follows: § 27.80 Fees; review classification, futures classification and supervision.

(a)For each calendar year, AMS will calculate the rate for services, per hour per program employee using the following formulas:

(1)*Regular rate.* The total AMS grading or classification program personnel direct pay divided by direct hours, which is then multiplied by the next year's percentage of cost of living increase, plus the benefits rate, plus the operating rate, plus the allowance for bad debt rate. If applicable, travel expenses may also be added to the cost of providing the service.

(2)*Overtime rate.* The total AMS grading or classification program personnel direct pay divided by direct hours, which is then multiplied by the next year's percentage of cost of living increase and then multiplied by 1.5 plus the benefits rate, plus the operating rate, plus an allowance for bad debt. If applicable, travel expenses may also be added to the cost of providing the service.

(3)*Holiday rate.* The total AMS grading or classification program personnel direct pay divided by direct hours which is then multiplied by the next year's percentage of cost of living increase and then multiplied by 2, plus benefits rate, plus the operating rate, plus an allowance for bad debt. If applicable, travel expenses may also be added to the cost of providing the service.

(b)For each calendar year, based on historical costs, AMS will calculate the benefits, operating, and allowance for bad debt components of the regular, overtime and holiday rates as follows:

(1)*Benefits rate.* The total AMS grading or classification program direct benefits costs divided by the total hours (regular, overtime, and holiday) worked, which is then multiplied by the next calendar year's percentage cost of living increase. Some examples of direct benefits are health insurance, retirement, life insurance, and Thrift Savings Plan

(TSP)retirement basic and matching contributions.

(2)*Operating rate.* The total AMS grading or classification program operating costs divided by total hours (regular, overtime, and holiday) worked, which is then multiplied by the percentage of inflation.

(3)*Allowance for bad debt rate.* Total AMS grading or classification program allowance for bad debt divided by total hours (regular, overtime, and holiday) worked.

(c)*Basis.* The calendar year cost of living expenses and percentage of inflation factors used in the formulas in this section are based on the most current Office of Management and Budget's Presidential Economic Assumptions. 3. Revise § 27.81 to read as follows: § 27.81 Fees; certificates. For each new certificate issued in substitution for a prior certificate at the request of the holder thereof, for the purpose of business convenience, or when made necessary by the transfer of cotton under the supervision of any exchange inspection agency as provided in § 27.73, the person making the request shall pay a fee determined as described in § 27.80. PART 28—COTTON CLASSING, TESTING, AND STANDARDS Subpart A—Regulations Under the United States Cotton Standards Act 4. The authority citation for part 28, subpart A, continues to read as follows: Authority: 7 U.S.C. 55 and 61. 5. Revise § 28.116 to read as follows: § 28.116 Amounts of fees for classification; exemption.

(a)For the classification of any cotton or samples, the person requesting the services shall pay a fee, based on the description that follows, subject to the additional fee provided by paragraph

(c)of this section.

(1)For each calendar year, AMS will calculate the rate for services per hour per program employee using the following formulas:

(i)*Regular rate.* The total AMS grading or classification program personnel direct pay divided by direct hours, which is then multiplied by the next year's percentage of cost of living increase, plus the benefits rate, plus the operating rate, plus the allowance for bad debt rate. If applicable, travel expenses may also be added to the cost of providing the service.

(ii)*Overtime rate.* The total AMS grading or classification program personnel direct pay divided by direct hours, which is then multiplied by the next year's percentage of cost of living increase and then multiplied by 1.5 plus the benefits rate, plus the operating rate, plus an allowance for bad debt. If applicable, travel expenses may also be added to the cost of providing the service.

(iii)*Holiday rate.* The total AMS grading or classification program personnel direct pay divided by direct hours which is then multiplied by the next year's percentage of cost of living increase and then multiplied by 2, plus benefits rate, plus the operating rate, plus an allowance for bad debt. If applicable, travel expenses may also be added to the cost of providing the service.

(2)For each calendar year, based on historical costs, AMS will calculate the benefits, operating, and allowance for bad debt components of the regular, overtime and holiday rates as follows:

(i)*Benefits rate.* The total AMS grading or classification program direct benefits costs divided by the total hours (regular, overtime, and holiday) worked, which is then multiplied by the next calendar year's percentage cost of living increase. Some examples of direct benefits are health insurance, retirement, life insurance, and Thrift Savings Plan

(TSP)retirement basic and matching contributions.

(ii)*Operating rate.* The total AMS grading or classification program operating costs divided by total hours (regular, overtime, and holiday) worked, which is then multiplied by the percentage of inflation.

(iii)*Allowance for bad debt rate.* Total AMS grading or classification program allowance for bad debt divided by total hours (regular, overtime, and holiday) worked.

(3)The calendar year cost of living expenses and percentage of inflation factors used in the formulas in this section are based on the most current Office of Management and Budget's Presidential Economic Assumptions.

(b)When a comparison is requested of any samples with a type or with other samples, the fees prescribed in paragraph

(a)of this section shall apply to every sample involved, including each of the samples of which the type is composed.

(c)An additional fee based on current shipping rates shall be assessed for returning samples unless the request for service is so worded that the samples become government property immediately after classification.

(d)For any review of classification or comparison of any cotton, the fees prescribed in paragraph

(a)of this section shall apply. The additional fee prescribed in paragraph

(c)of this section is not applicable to review of classification if made on the same sample as the original class or comparison. 6. Revise § 28.117 to read as follows: § 28.117 Fee for new memorandum or certificate. For each new memorandum or certificate issued in substitution for a prior memorandum or certificate at the request of the holder, thereof, on account of the breaking or splitting of the lot of cotton covered thereby or otherwise for his business convenience, the person requesting such substitution shall pay a fee determined as described in § 28.116. If the memorandum is provided by electronic means, the fee shall be determined using the same provisions. 7. Revise § 28.122 to read as follows: § 28.122 Fee for practical classing examination. The fee for the practical classing examination for cotton shall be determined as described in § 28.116. Any applicant who passes the examination may be issued a certificate indicating this accomplishment. Any person who fails to pass the examination may be reexamined. The fee for this practical reexamination will be determined as described in § 28.116. Subpart D—Cotton Classification and Market News Service for Producers 8. The authority citation for part 28, subpart D, continues to read as follows: Authority: 7 U.S.C. 51-65; 7 U.S.C. 471-476. 9. Amend § 28.909 by revising paragraph

(b)to read as follows: § 28.909 Costs.

(b)The cost of High Volume Instrument

(HVI)cotton classification service to producers will be based on formulas set forth in § 28.116. The proceeds of the sale of cotton samples shall be used to defray the costs of providing the service under this subpart. 10. Revise § 28.910 to read as follows: § 28.910 Classification of samples and issuances of classification data. (a)(1) The samples submitted as provided in the subpart shall be classified by employees of the Division, and classification memoranda showing the official quality determination of each sample according to the official cotton standards of the United States shall be issued by any one of the following methods at no additional charge:

(i)Electronic means; or

(ii)Telecommunications, with all long distance telephone line charges paid by the receiver of data.

(2)When an additional copy of the classification memorandum is issued by any method listed in paragraph (a)(1) of this section, there will be a charge determined as described in § 28.116. If provided as an additional method of data transfer, the minimum fee for each method issued shall also be determined as described in § 28.116.

(b)Owners of cotton, other than producers, may receive classification data showing the official quality determination of each sample by means of telecommunications from a central database to be maintained by the Division. The fee for this service shall be determined as described in § 28.116, with all communication charges paid by the receiver of data.

(c)Upon request of an owner of cotton for which classification memoranda have been issued under the subpart, a new memorandum shall be issued for the business convenience of such owner without the reclassification of the cotton. Such rewritten memorandum shall bear the date of its issuance and the date or inclusive dates of the original classification. The per-hour fee for a new memorandum shall be determined according to § 28.116, with a minimum per-sheet fee determined under the same provisions. 11. Amend § 28.911 by revising paragraph

(a)and the last sentence in paragraph

(b)to read as follows: § 28.911 Review classification.

(a)A producer may request one review classification for each bale of eligible cotton. The fee for review classification shall be determined based on the formulas in § 28.116.

(b)* * * Producers who request return of their samples after classing will pay a fee determined based on the formulas in § 28.116. PART 29—TOBACCO INSPECTION 12. The authority citation for part 29 is revised to read as follows: Authority: 7 U.S.C. 511-511s. 13. Amend § 29.123 by: a. Revising the first sentence of paragraph (a); b. Revising paragraph (b); c. Redesignating paragraphs (c), (d), and

(e)as paragraphs (d), (e), and (f), respectively; d. Adding new paragraph (c); and e. Revising newly redesignated paragraph (d). The revisions and addition read as follows: § 29.123 Fees and charges.

(a)*Mandatory inspection.* For each year, AMS will calculate the rate for services, per hour per program employee as described in § 29.123(b) and (c). * * *

(b)*Domestic permissive inspection and certification* —(1) *Regular rate.* The total AMS grading, inspection, or sampling program personnel direct pay divided by direct hours, which is then multiplied by the next year's percentage of cost of living increase, plus the benefits rate, plus the operating rate, plus the allowance for bad debt rate. If applicable, travel expenses may also be added to the cost of providing the service.

(2)*Overtime rate.* The total AMS grading, inspection, or sampling program personnel direct pay divided by direct hours, which is then multiplied by the next year's percentage of cost of living increase and then multiplied by 1.5 plus the benefits rate, plus the operating rate, plus an allowance for bad debt. If applicable, travel expenses may also be added to the cost of providing the service.

(3)*Holiday rate.* The total AMS grading, inspection, or sampling program personnel direct pay divided by direct hours which is then multiplied by the next year's percentage of cost of living increase and then multiplied by 2, plus benefits rate, plus the operating rate, plus an allowance for bad debt. If applicable, travel expenses may also be added to the cost of providing the service.

(4)*Applicability.* The fees in paragraphs (b)(1) through

(3)of this section shall be applicable for hogshead, bale cases, or sample inspections. (c)(1) For each calendar year, based on previous fiscal year/historical actual costs, AMS will calculate the benefits, operating, and allowance for bad debt components of the regular, overtime and holiday rates as follows:

(i)*Benefits rate.* The total AMS grading, inspection, or sampling program direct benefits costs divided by the total hours (regular, overtime, and holiday) worked, which is then multiplied by the next calendar year's percentage cost of living increase. Some examples of direct benefits are health insurance, retirement, life insurance, and Thrift Savings Plan

(TSP)retirement basic and matching contributions.

(ii)*Operating rate.* The total AMS grading, inspection, or sampling program operating costs divided by total hours (regular, overtime, and holiday) worked, which is then multiplied by the percentage of inflation.

(iii)*Allowance for bad debt rate.* Total AMS grading, inspection, or sampling program allowance for bad debt divided by total hours (regular, overtime, and holiday) worked.

(2)The calendar year cost of living expenses and percentage of inflation factors used in the formulas in this section are based on the most recent Office of Management and Budget's Presidential Economic Assumptions.

(d)*Export permissive inspection and certification.* The inspection and certification fee for export tobacco will be determined as described in § 29.123(b) and (c). 14. Amend § 29.500 by revising the first sentence of paragraph

(a)and revising paragraphs

(b)and

(c)to read as follows: § 29.500 Fees and charges for inspection and acceptance of imported tobacco.

(a)The fee for inspection of imported tobacco will be determined as described in § 29.123 and shall be paid by the importer. * * *

(b)The fee for sampling, accepting, and certification of imported flue-cured and burley tobacco for prohibited pesticide residues will be determined as described in § 29.123 and shall be paid by the importer.

(c)The fee for accepting imported flue-cured and burley tobacco not accompanied by a certification that it is free of prohibited pesticide residues will be determined as described in § 29.123. Fees for services rendered shall be remitted by check or draft in accordance with a statement issued by the Director, and shall be made payable to “Agricultural Marketing Service.” PART 51—FRESH FRUITS, VEGETABLES AND OTHER PRODUCTS (INSPECTION, CERTIFICATION, AND STANDARDS) 15. The authority citation for part 51 continues to read as follows: Authority: 7 U.S.C. 1621-1627. 16. Revise § 51.38 to read as follows: § 51.38 Basis for fees and rates.

(a)For each calendar year, AMS will calculate the rate for services, per hour per program employee using the following formulas:

(1)*Regular rate.* The total AMS inspection program personnel direct pay divided by direct hours, which is then multiplied by the next year's percentage of cost of living increase, plus the benefits rate, plus the operating rate, plus the allowance for bad debt rate. If applicable, travel expenses may also be added to the cost of providing the service.

(2)*Overtime rate.* The total AMS inspection program personnel direct pay divided by direct hours, which is then multiplied by the next year's percentage of cost of living increase and then multiplied by 1.5 plus the benefits rate, plus the operating rate, plus an allowance for bad debt. If applicable, travel expenses may also be added to the cost of providing the service.

(3)*Holiday rate.* The total AMS inspection program personnel direct pay divided by direct hours which is then multiplied by the next year's percentage of cost of living increase and then multiplied by 2, plus benefits rate, plus the operating rate, plus an allowance for bad debt. If applicable, travel expenses may also be added to the cost of providing the service. (b)(1) For each calendar year, based on previous fiscal year/historical actual costs, AMS will calculate the benefits, operating, and allowance for bad debt components of the regular, overtime and holiday rates as follows:

(i)*Benefits rate.* The total AMS inspection program direct benefits costs divided by the total hours (regular, overtime, and holiday) worked, which is then multiplied by the next calendar year's percentage cost of living increase. Some examples of direct benefits are health insurance, retirement, life insurance, and Thrift Savings Plan

(TSP)retirement basic and matching contributions.

(ii)*Operating rate.* The total AMS inspection program operating costs divided by total hours (regular, overtime, and holiday) worked, which is then multiplied by the percentage of inflation.

(iii)*Allowance for bad debt rate.* Total allowance for bad debt divided by total hours (regular, overtime, and holiday) worked.

(c)When an inspection is delayed because product is not available or readily accessible, a charge for waiting time shall be determined using the formulas in this section. PART 52—PROCESSED FRUITS AND VEGETABLES, PROCESSED PRODUCTS THEREOF, AND OTHER PROCESSED FOOD PRODUCTS 17. The authority citation for part 52 continues to read as follows: Authority: 7 U.S.C. 1621-1627. § 52.2 [Amended] 18. Amend § 52.2 by removing the definition of “In-plant sampler”. 19. Revise § 52.42 to read as follows: § 52.42 Schedule of fees.

(a)For each calendar year, AMS will calculate the rate for services, per hour per program employee using the following formulas:

(b)For each calendar year, based on previous fiscal year/historical actual costs, AMS will calculate the benefits, operating, and allowance for bad debt components of the regular, overtime and holiday rates as follows:

(1)*Benefits rate.* The total AMS inspection program direct benefits costs divided by the total hours (regular, overtime, and holiday) worked, which is then multiplied by the next calendar year's percentage cost of living increase. Some examples of direct benefits are health insurance, retirement, life insurance, and Thrift Savings Plan

(TSP)retirement basic and matching contributions.

(2)*Operating rate.* The total AMS inspection program operating costs divided by total hours (regular, overtime, and holiday) worked, which is then multiplied by the percentage of inflation.

(3)*Allowance for bad debt rate.* Total AMS inspection program allowance for bad debt divided by total hours (regular, overtime, and holiday) worked.

(c)The calendar year cost of living expenses and percentage of inflation factors used in the formulas in this section are based on the most recent Office of Management and Budget's Presidential Economic Assumptions. 20. Revise § 52.50 to read as follows: § 52.50 Travel and other expenses. Charges may be assessed to cover the cost of travel time incurred in connection with the performance of any inspection service, including appeal inspections, as described in § 52.42. This includes time spent waiting for transportation as well as time spent traveling, but not to exceed eight hours of travel time for any one person for any one day: And provided further, that if travel is by common carrier, no hourly charge may be made for travel time outside the employee's official work hours. 21. Amend § 52.51 by revising paragraphs (a), (b), (c), and

(d)to read as follows: § 52.51 Charges for inspection services on a contract basis.

(a)The Administrator may enter into contracts with applicants to perform continuous inspection services or other types of inspection services pursuant to the regulations in this part and other requirements as prescribed by the Administrator in such contract, and the charges for such inspection service provided in such contracts shall be based on such basis as will reimburse the Agricultural Marketing Service of the Department for the full cost of rendering such inspection service as described in § 52.42.

(b)The Administrator may enter into a written memorandum of understanding or contract, whichever may be appropriate, with any administrative agency charged with the administration of a marketing agreement or a marketing order effective pursuant to the Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C. 601 *et seq.* ) for the making of inspections pursuant to said agreement or order on such basis as will reimburse the Agricultural Marketing Service of the Department for the full cost of rendering such inspection service based on the formulas in § 52.42. Likewise, the Administrator may enter into a written memorandum of understanding or contract, whichever may be appropriate, with an administrative agency charged with an administration of a similar program operated pursuant to the laws of any State.

(c)Charges for year-round in-plant inspection services on a contract basis will be billed to the applicant monthly for all hours worked with a minimum of 40 hours per week for each inspector assigned to perform the inspection services. Charges for work performed in excess of an employee's regular work schedule will be calculated as described in § 52.42(a)(2).

(d)Charges for less than year-round in-plant inspection services (four or more consecutive 40 hour weeks) on a contract basis will be billed to the applicant monthly for all hours with a minimum of 40 hours for each inspector assigned to perform the inspection services and will be calculated based on the formulas in § 52.42. PART 54—MEATS, PREPARED MEATS, AND MEAT PRODUCTS (GRADING, CERTIFICATION, AND STANDARDS) 22. The authority citation for part 54 continues to read as follows: Authority: 7 U.S.C. 1621—1627. § 54.6 [Amended] 23. Amend § 54.6 in paragraph (c)(2), in the first sentence, by removing the phrase “as provided in § 54.27(b)” and adding “as provided in § 54.27” in its place. 24. Revise § 54.27 to read as follows: § 54.27 Fees and other charges for service.

(a)Fees and other charges equal as nearly as may be to the cost of the services rendered shall be assessed and collected from applicants in accordance with the following provisions unless otherwise provided in the cooperative agreement under which the services are furnished, or as provided in § 54.6. For each calendar year, AMS will calculate the rate for inspection, grading, or certification services, per hour per program employee using the following formulas:

(1)*Regular rate.* The total AMS grading, inspection, or certification program personnel direct pay divided by direct hours, which is then multiplied by the next year's percentage of cost of living increase, plus the benefits rate, plus the operating rate, plus the allowance for bad debt rate. If applicable, travel expenses may also be added to the cost of providing the service.

(2)*Overtime rate.* The total AMS grading, inspection, or certification program personnel direct pay divided by direct hours, which is then multiplied by the next year's percentage of cost of living increase and then multiplied by 1.5 plus the benefits rate, plus the operating rate, plus an allowance for bad debt. If applicable, travel expenses may also be added to the cost of providing the service.

(3)*Holiday rate.* The total AMS grading, inspection, or certification program personnel direct pay divided by direct hours which is then multiplied by the next year's percentage of cost of living increase and then multiplied by 2, plus benefits rate, plus the operating rate, plus an allowance for bad debt. If applicable, travel expenses may also be added to the cost of providing the service. (b)(1) For each calendar year, based on previous fiscal year/historical actual costs, AMS will calculate the benefits, operating, and allowance for bad debt components of the regular, overtime and holiday rates as follows:

(i)*Benefits rate.* The total AMS grading, inspection, or certification program direct benefits costs divided by the total hours (regular, overtime, and holiday) worked, which is then multiplied by the next calendar year's percentage cost of living increase. Some examples of direct benefits are health insurance, retirement, life insurance, and Thrift Savings Plan

(TSP)retirement basic and matching contributions.

(ii)*Operating rate.* The total AMS grading, inspection, or certification program operating costs divided by total hours (regular, overtime, and holiday) worked, which is then multiplied by the percentage of inflation.

(iii)*Allowance for bad debt rate.* Total AMS grading, inspection, or certification program allowance for bad debt divided by total hours (regular, overtime, and holiday) worked.

(c)*Fees for service on commitment basis.* Minimum fees for service performed under a commitment agreement or an agreement by memorandum shall be on the basis of 8 hours per day, Monday through Friday, excluding Federal legal holidays occurring Monday through Friday on which no grading and certification services are performed. Fees will be based on the formulas in this section. The Agency reserves the right under such a commitment agreement or agreement by memorandum to use any grader assigned to the plant on a commitment basis to perform service for other applicants, as provided in § 54.6(c), crediting the commitment applicant with the number of hours charged to the other applicant, provided the allowable credit hours plus hours actually worked for the applicants do not exceed 8 hours on any day, Monday through Friday, excluding legal holidays.

(d)*Fees for appeal service.* Fees for appeal service shall be determined on the basis of the time of two official graders required to render the service, including the time required for the preparation of certificates and travel of such graders in connection with the performance of the service. *Provided,* that when on appeal it is found that there was error in the original determination equal to or exceeding ten percent of the total number of similar units of the products involved, no charge will be made for the appeal service unless a special agreement therefor was made with the applicant in advance.

(e)*Fees for extra copies of certificates.* In addition to copies of certificates furnished under § 54.14, any financially interested person may obtain not to exceed three copies of any such certificate within one year from its date of issuance upon payment of a fee, and not to exceed three copies of any such certificate at any time thereafter, while a copy of such certificate is on file in the Department. The fee for copies of certificates will be determined using the formulas in this section. PART 56—VOLUNTARY GRADING OF SHELL EGGS 25. The authority citation for part 56 continues to read as follows: Authority: 7 U.S.C. 1621-1627. 26. Revise § 56.46 to read as follows: § 56.46 On a fee basis.

(a)Unless otherwise provided in this part, the fees to be charged and collected for any service performed, in accordance with this part, on a fee basis shall be based on the applicable formulas specified in this section. For each calendar year or crop year, AMS will calculate the rate for grading or audit services, per hour per program employee using the following formulas:

(1)*Regular rate.* The total AMS grading or audit program personnel direct pay divided by direct hours, which is then multiplied by the next year's percentage of cost of living increase, plus the benefits rate, plus the operating rate, plus the allowance for bad debt rate. If applicable, travel expenses may also be added to the cost of providing the service.

(2)*Overtime rate.* The total AMS grading or audit program personnel direct pay divided by direct hours, which is then multiplied by the next year's percentage of cost of living increase and then multiplied by 1.5 plus the benefits rate, plus the operating rate, plus an allowance for bad debt. If applicable, travel expenses may also be added to the cost of providing the service.

(3)*Holiday rate.* The total AMS grading or audit program personnel direct pay divided by direct hours which is then multiplied by the next year's percentage of cost of living increase and then multiplied by 2, plus benefits rate, plus the operating rate, plus an allowance for bad debt. If applicable, travel expenses may also be added to the cost of providing the service. (b)(1) For each calendar year, based on previous fiscal year/historical actual costs, AMS will calculate the benefits, operating, and allowance for bad debt components of the regular, overtime and holiday rates as follows:

(i)*Benefits rate.* The total AMS grading or audit program direct benefits costs divided by the total hours (regular, overtime, and holiday) worked, which is then multiplied by the next calendar year's percentage cost of living increase. Some examples of direct benefits are health insurance, retirement, life insurance, and Thrift Savings Plan

(TSP)retirement basic and matching contributions.

(ii)*Operating rate.* The total AMS grading or audit program operating costs divided by total hours (regular, overtime, and holiday) worked, which is then multiplied by the percentage of inflation.

(iii)*Allowance for bad debt rate.* Total AMS grading or audit program allowance for bad debt divided by total hours (regular, overtime, and holiday) worked.

(c)Fees for grading services will be based on the time required to perform the services. The hourly charges shall include the time actually required to perform the grading, waiting time, travel time, and any clerical costs involved in issuing a certificate.

(d)Fees for audit services will be based on the time and expenses required to perform the audit. The hourly charge shall include the time actually required to perform the audit, waiting time, travel time, and any clerical costs involved in issuing an audit report. 27. Amend § 56.52 by: a. Revising the introductory text; b. Revising the second sentence of paragraph (a)(1); and c. Revising the first sentence of paragraph (a)(2) introductory text. The revisions read as follows: § 56.52 Charges for continuous grading performed on a resident basis. Fees to be charged and collected for any grading service, other than for an appeal grading, on a resident grading basis, shall be calculated as described in this part. The fees to be charged for any appeal grading shall be as provided in § 56.47.

(a)* * *

(1)* * * The costs for completing the plant survey shall be borne by the applicant on a fee basis as described in § 56.46. * * *

(2)Charges for the cost of each grader assigned to a plant will be calculated as described in § 56.46, except that no charge will be assessed when the assigned grader is temporarily reassigned by AMS to perform grading service for other than the applicant. * * * 28. Amend § 56.54 by revising the introductory text and paragraph (a)(1) introductory text to read as follows: § 56.54 Charges for continuous grading performed on a nonresident basis. Fees to be charged and collected for grading service on a nonresident grading basis, shall be calculated as described in this part. The fees to be charged for any appeal grading shall be calculated as provided in § 56.47.

(a)* * *

(1)A charge for the salary and other costs, calculated as described in § 56.46, for each grader while assigned to a plant, except that no charge will be made when the assigned grader is temporarily reassigned by AMS to perform grading service for other than the applicant. Charges to plants are as follows: PART 58—GRADING AND INSPECTION, GENERAL SPECIFICATIONS FOR APPROVED PLANTS AND STANDARDS FOR GRADES OF DAIRY PRODUCTS 29. The authority citation for part 58 continues to read as follows: Authority: 7 U.S.C. 1621-1627. 30. Revise § 58.39 to read as follows: § 58.39 Fees for holiday or other nonworktime. If an applicant requests that inspection or grading service be performed on a holiday, Saturday, or Sunday or in excess of each 8-hour shift Monday through Friday, the applicant shall be charged for such service at a rate determined using the formulas in § 58.43. 31. Revise § 58.43 to read as follows: § 58.43 Fees for inspection, grading, sampling, and certification.

(a)Unless otherwise provided in this part, the fees to be charged and collected for any service performed, in accordance with this part, on a fee basis shall be based on the applicable formulas specified in this section. For each calendar year, AMS will calculate the rate for grading, certification, or inspection services, per hour per program employee using the following formulas:

(1)*Regular rate.* The total AMS grading, certification, or inspection program personnel direct pay divided by direct hours, which is then multiplied by the next year's percentage of cost of living increase, plus the benefits rate, plus the operating rate, plus the allowance for bad debt rate. If applicable, travel expenses may also be added to the cost of providing the service.

(2)*Overtime rate.* The total AMS grading, certification, or inspection program personnel direct pay divided by direct hours, which is then multiplied by the next year's percentage of cost of living increase and then multiplied by 1.5 plus the benefits rate, plus the operating rate, plus an allowance for bad debt. If applicable, travel expenses may also be added to the cost of providing the service.

(3)*Holiday rate.* The total AMS grading, certification, or inspection program personnel direct pay divided by direct hours, which is then multiplied by the next year's percentage of cost of living increase and then multiplied by 2, plus benefits rate, plus the operating rate, plus an allowance for bad debt. If applicable, travel expenses may also be added to the cost of providing the service.

(1)*Benefits rate.* The total AMS grading, certification, or inspection program direct benefits costs divided by the total hours (regular, overtime, and holiday) worked, which is then multiplied by the next calendar year's percentage cost of living increase. Some examples of direct benefits are health insurance, retirement, life insurance, and Thrift Savings Plan

(TSP)retirement basic and matching contributions.

(2)*Operating rate.* The total AMS grading, certification, or inspection program operating costs divided by total hours (regular, overtime, and holiday) worked, which is then multiplied by the percentage of inflation.

(3)*Allowance for bad debt rate.* Total AMS grading, certification, or inspection program allowance for bad debt divided by total hours (regular, overtime, and holiday) worked.

(c)The calendar year cost of living expenses and percentage of inflation factors used in the formulas in this section are based on the most recent Office of Management and Budget's Presidential Economic Assumptions. 32. Revise § 58.45 to read as follows: § 58.45 Fees for continuous resident services. Charges for the inspector(s) and grader(s) assigned to a continuous resident program shall be calculated using the formulas in § 58.43. PART 62—LIVESTOCK, MEAT AND OTHER AGRICULTURAL COMMODITIES (QUALITY SYSTEMS VERIFICATION PROGRAMS) 33. The authority citation for part 62 is revised to read as follows: Authority: 7 U.S.C. 1621-1627. 34. Revise § 62.300 to read as follows: § 62.300 Fees and other costs of service.

(a)For each calendar year, AMS will calculate the rate for quality systems verification services, per hour per program employee using the following formulas:

(1)*Regular rate.* The total AMS quality systems verification program

(QSVP)personnel direct pay divided by direct hours, which is then multiplied by the next year's percentage of cost of living increase, plus the benefits rate, plus the operating rate, plus the allowance for bad debt rate. If applicable, travel expenses may also be added to the cost of providing the service.

(2)*Overtime rate.* The total AMS QSVP personnel direct pay divided by direct hours, which is then multiplied by the next year's percentage of cost of living increase and then multiplied by 1.5 plus the benefits rate, plus the operating rate, plus an allowance for bad debt. If applicable, travel expenses may also be added to the cost of providing the service.

(3)*Holiday rate.* The total AMS QSVP personnel direct pay divided by direct hours, which is then multiplied by the next year's percentage of cost of living increase and then multiplied by 2, plus benefits rate, plus the operating rate, plus an allowance for bad debt. If applicable, travel expenses may also be added to the cost of providing the service. (b)(1) For each calendar year, based on previous fiscal year/historical actual costs, AMS will calculate the benefits, operating, and allowance for bad debt components of the regular, overtime and holiday rates as follows:

(i)*Benefits rate.* The total AMS QSVP direct benefits costs divided by the total hours (regular, overtime, and holiday) worked, which is then multiplied by the next calendar year's percentage cost of living increase. Some examples of direct benefits are health insurance, retirement, life insurance, and Thrift Savings Plan

(TSP)retirement basic and matching contributions.

(ii)*Operating rate.* The total AMS QSVP operating costs divided by total hours (regular, overtime, and holiday) worked, which is then multiplied by the percentage of inflation.

(iii)*Allowance for bad debt rate.* Total AMS QSVP allowance for bad debt divided by total hours (regular, overtime, and holiday) worked.

(c)*Transportation costs.* Applicants are responsible for paying actual travel costs incurred to provide QSVP services including but not limited to: Mileage charges for use of privately owned vehicles, rental vehicles and gas, parking, tolls, and public transportation costs such as airfare, train, and taxi service.

(d)*Per diem costs.* The applicant is responsible for paying per diem costs incurred to provide QSVP services away from the auditor's or USDA officials' official duty station(s). Per diem costs shall be calculated in accordance with existing travel regulations (41 CFR, subtitle F—Federal Travel Regulation System, chapter 301).

(e)*Other costs.* When costs, other than those costs specified in paragraphs

(a)through

(c)of this section, are involved in providing the QSVP services, the applicant shall be responsible for these costs. The amount of these costs shall be determined administratively by the Chief. However, the applicant will be notified of these costs before the service is rendered. PART 70—VOLUNTARY GRADING OF POULTRY AND RABBIT PRODUCTS 35. The authority citation for part 70 continues to read as follows: Authority: 7 U.S.C. 1621-1627. 36. Revise § 70.71 to read as follows: § 70.71 On a fee basis. Unless otherwise provided in this part, the fees to be charged and collected for any grading or audit service performed in accordance with this part, on a fee basis shall be based on the applicable formulas specified in this section.

(a)For each calendar year, AMS will calculate the rate for grading and audit services, per hour per program employee using the following formulas:

(3)*Holiday rate.* The total AMS grading or audit program personnel direct pay divided by direct hours, which is then multiplied by the next year's percentage of cost of living increase and then multiplied by 2, plus benefits rate, plus the operating rate, plus an allowance for bad debt. If applicable, travel expenses may also be added to the cost of providing the service. (b)(1) For each calendar year, based on previous fiscal year/historical actual costs, AMS will calculate the benefits, operating, and allowance for bad debt components of the regular, overtime and holiday rates as follows:

(TSP)retirement basic and matching contributions.

(ii)*Operating rate.* The AMS grading or audit program total operating costs divided by total hours (regular, overtime, and holiday) worked, which is then multiplied by the percentage of inflation.

(iii)*Allowance for bad debt rate.* Total AMS grading or audit program allowance for bad debt divided by total hours (regular, overtime, and holiday) worked.

(d)Fees for audit services will be based on the time and expenses required to perform the audit. The hourly charge shall include the time actually required to perform the audit, waiting time, travel time, and any clerical costs involved in issuing an audit report. 37. Revise § 70.72 to read as follows: § 70.72 Fees for appeal grading or review of a grader's decision. The costs of an appeal grading, or review of a grader's decision, shall be borne by the appellant on a fee basis at rates determined based on the formulas in § 70.71. If the appeal grading, or review of a grader's decision discloses that a material error was made in the original determination, no fee or expenses will be charged. 38. Amend § 70.76 by revising the introductory text and the first sentence of paragraph (a)(1) introductory text to read as follows: § 70.76 Charges for continuous poultry grading performed on a nonresident basis. Fees to be charged and collected for grading service on a nonresident grading basis shall be based on the formulas provided in this part. The fees to be charged for any appeal grading shall be as provided in § 70.72.

(a)* * *

(1)A charge for the salary and other costs, based on § 70.71, for each grader while assigned to a plant, except that no charge will be made when the assigned grader is temporarily reassigned by AMS to perform grading service for other than the applicant. * * * 39. Amend § 70.77 by revising the introductory text and paragraphs (a)(1) and

(2)to read as follows: § 70.77 Charges for continuous poultry or rabbit grading performed on a resident basis. Fees to be charged and collected for any grading service on a resident grading basis and for an appeal grading shall be determined based on the formulas in § 70.71.

(a)* * *

(1)When a signed application for service has been received, the State supervisor or the supervisor's assistant shall complete a plant survey pursuant to § 70.34. The costs for completing the plant survey shall be borne by the applicant on a fee basis based on the formulas in § 70.71. No charges will be assessed when the application is required because of a change in name or ownership. If service is not installed within 6 months from the date the application is filed, or if service is inactive due to an approved request for removal of a grader(s) for a period of 6 months, the application will be considered terminated, but a new application may be filed at any time. In addition, there will be a charge of $300 if the application is terminated at the request of the applicant for reasons other than for a change in location within 12 months from the date of the inauguration of service.

(2)A charge for the salary and other costs, as specified in this part, for each grader while assigned to a plant, except that no charge will be made when the assigned grader is temporarily reassigned by AMS to perform grading service for other than the applicant. PART 75—REGULATIONS FOR INSPECTION AND CERTIFICATION OF QUALITY OF AGRICULTURAL AND VEGETABLE SEEDS 40. The authority citation for part 75 continues to read as follows: Authority: 7 U.S.C. 1622 and 1624. 41. Revise § 75.41 to read as follows: § 75.41 General. Fees and charges for inspection or certification services performed by Federal employees shall cover the cost of performing the service. Fees shall be for actual time required to render the service.

(a)For each calendar year, AMS will calculate the rate for inspection or certification services, per hour per program employee using the following formulas:

(1)*Regular rate.* The total AMS inspection or certification program personnel direct pay divided by direct hours, which is then multiplied by the next year's percentage of cost of living increase, plus the benefits rate, plus the operating rate, plus the allowance for bad debt rate. If applicable, travel expenses may also be added to the cost of providing the service.

(2)*Overtime rate.* The total AMS inspection or certification program personnel direct pay divided by direct hours, which is then multiplied by the next year's percentage of cost of living increase and then multiplied by 1.5 plus the benefits rate, plus the operating rate, plus an allowance for bad debt. If applicable, travel expenses may also be added to the cost of providing the service.

(3)*Holiday rate.* The total AMS inspection or certification program personnel direct pay divided by direct hours, which is then multiplied by the next year's percentage of cost of living increase and then multiplied by 2, plus benefits rate, plus the operating rate, plus an allowance for bad debt. If applicable, travel expenses may also be added to the cost of providing the service.

(1)*Benefits rate.* The total AMS inspection or certification program direct benefits costs divided by the total hours (regular, overtime, and holiday) worked, which is then multiplied by the next calendar year's percentage cost of living increase. Some examples of direct benefits are health insurance, retirement, life insurance, and Thrift Savings Plan

(TSP)retirement basic and matching contributions.

(2)*Operating rate.* The total AMS inspection or certification program operating costs divided by total hours (regular, overtime, and holiday) worked, which is then multiplied by the percentage of inflation.

(3)*Allowance for bad debt rate.* Total AMS inspection or certification program allowance for bad debt divided by total hours (regular, overtime, and holiday) worked.

(b)to read as follows: § 75.42 Sampling and sealing.

(b)When onsite inspection services are performed by Federal employees at the request of the applicant, charges will be based on the formulas in § 75.41. 43. Amend § 75.43 by revising paragraphs

(a)and

(c)to read as follows *:* § 75.43 Laboratory testing.

(a)Fees assessed based on the formulas in § 75.41.

(c)The fee for a preliminary report issued prior to completion of testing shall be assessed in accordance with paragraph

(a)of this section. PART 91—SERVICES AND GENERAL INFORMATION 44. The authority citation for part 91 continues to read as follows: Authority: 7 U.S.C. 1622, 1624. 45. Amend § 91.37 by: a. Revising paragraphs

(a)and (b); b. Removing paragraph (c); and c. Redesignating paragraphs

(d)and

(e)as paragraphs

(c)and (d), respectively. The revisions read as follows: § 91.37 Standard hourly fee rate for laboratory testing, analysis, and other services.

(a)For each fiscal year, AMS will calculate the rate for laboratory testing, analysis, and other services, per hour per program employee using the following formulas:

(1)*Regular rate.* The total AMS laboratory service program personnel direct pay divided by direct hours, which is then multiplied by the next year's percentage of cost of living increase, plus the benefits rate, plus the operating rate, plus the allowance for bad debt rate. If applicable, travel expenses may also be added to the cost of providing the service.

(2)*Overtime rate.* The total AMS laboratory service program personnel direct pay divided by direct hours, which is then multiplied by the next year's percentage of cost of living increase and then multiplied by 1.5 plus the benefits rate, plus the operating rate, plus an allowance for bad debt. If applicable, travel expenses may also be added to the cost of providing the service.

(3)*Holiday rate.* The total AMS laboratory service program personnel direct pay divided by direct hours, which is then multiplied by the next year's percentage of cost of living increase and then multiplied by 2, plus benefits rate, plus the operating rate, plus an allowance for bad debt. If applicable, travel expenses may also be added to the cost of providing the service. (b)(1) For each calendar year, based on previous fiscal year/historical actual costs, AMS will calculate the benefits, operating, and allowance for bad debt components of the regular, overtime and holiday rates as follows:

(i)*Benefits rate.* The total AMS laboratory service program direct benefits costs divided by the total hours (regular, overtime, and holiday) worked, which is then multiplied by the next calendar year's percentage cost of living increase. Some examples of direct benefits are health insurance, retirement, life insurance, and Thrift Savings Plan

(TSP)retirement basic and matching contributions.

(ii)*Operating rate.* The total AMS laboratory service program operating costs divided by total hours (regular, overtime, and holiday) worked, which is then multiplied by the percentage of inflation.

(iii)*Allowance for bad debt rate.* Total AMS laboratory service program allowance for bad debt divided by total hours (regular, overtime, and holiday) worked.

(a)to read as follows: § 91.38 Additional fees for appeal of analysis.

(a)The applicant for appeal sample testing will be charged a fee based on the formulas in § 91.37. 47. Amend § 91.39 by revising paragraph

(a)to read as follows: § 91.39 Premium hourly fee rates for overtime and legal holiday service.

(a)When analytical testing in a Science and Technology facility requires the services of laboratory personnel beyond their regularly assigned tour of duty on any day or on a day outside the established schedule, such services are considered as overtime work. When analytical testing in a Science and Technology facility requires the services of laboratory personnel on a Federal holiday or a day designated in lieu of such a holiday, such services are considered holiday work. Laboratory analyses initiated at the request of the applicant to be rendered on Federal holidays, and on an overtime basis will be charged fees based on the formulas in § 91.37. Dated: November 5, 2014. Erin M. Morris, Associate Administrator, Agricultural Marketing Service. [FR Doc. 2014-26655 Filed 11-12-14; 8:45 am]

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