Unknown. Final rule
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/register/2024/08/12/2024-17902A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
--- schema: federal-register doc_type: fedreg source_file: FR-2024-08-12.xml --- 89 155 Monday, August 12, 2024 Contents Agency Health Agency for Healthcare Research and Quality NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 65629-65631 2024-17813 Common Formats for Patient Safety Data Collection, 65628-65629 2024-17927 Agricultural Marketing Agricultural Marketing Service RULES Free and Restricted Percentages for the 2023-24 Crop Year:
Tart Cherries Grown in the States of Michigan et al., 65515-65520 2024-17902 Agriculture Agriculture Department See Agricultural Marketing Service See The U.S. Codex Office Fiscal Bureau of the Fiscal Service NOTICES Application and Renewal Fees Imposed on Surety Companies and Reinsuring Companies: New Fee Categories Added, 65716 2024-17884 Centers Medicare Centers for Medicare & Medicaid Services NOTICES Medicare Program: Transitional Coverage for Emerging Technologies, 65724-65754 2024-17603 Civil Rights Civil Rights Commission NOTICES Hearings, Meetings, Proceedings, etc.:
Wyoming Advisory Committee, 65583 2024-17899 Coast Guard Coast Guard RULES Safety Zone: West Passage, Narragansett Bay, Jamestown, RI, 65540-65542 2024-17915 Commerce Commerce Department See Foreign-Trade Zones Board See International Trade Administration See National Institute of Standards and Technology See National Oceanic and Atmospheric Administration Commodity Futures Commodity Futures Trading Commission NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals:
Regulation of Domestic Exchange-Traded Options, 65606-65607 2024-17792 Defense Department Defense Department NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 65607-65609 2024-17870 2024-17871 2024-17869 Disability Disability Employment Policy Office NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 65672-65673 2024-17852 Education Department Education Department NOTICES Agency Information Collection Activities;
Proposals, Submissions, and Approvals: Student Aid Internet Gateway Enrollment Document, 65615-65616 2024-17897 Applications for Selection: Performance Partnership Pilots for Disconnected Youth, 65609-65615 2024-17895 Energy Department Energy Department RULES Energy Conservation Program: Energy Conservation Standards for Consumer Conventional Cooking Products, 65520-65534 2024-17474 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 65617 2024-17889 Importation or Exportation of Liquified Natural Gas or Electric Energy;
Applications, Authorizations, etc.: Idaho Power Co., 65619-65620 2024-17885 Northland Power and Energy Marketing
(US)Inc., 65617-65618 2024-17888 Permits; Applications, Issuances, etc.: Lake Erie Connector Transmission, LLC; Presidential Permit, 65616-65617 2024-17890 Privacy Act; Systems of Records, 65618-65619 2024-17887 Environmental Protection Environmental Protection Agency RULES Pesticide Tolerance; Exemptions, Petitions, Revocations, etc.: Bacillus Paralicheniformis Strain CH0273, 65545-65548 2024-17860 Bacillus Subtilis Strain CH4000, 65548-65550 2024-17861 Kasugamycin, 65542-65545 2024-17805 PROPOSED RULES Phasedown of Hydrofluorocarbons: Restrictions on the Use of HFCs under the American Innovation and Manufacturing Act in Variable Refrigerant Flow Air Conditioning Subsector, 65575-65576 2024-17751 NOTICES Privacy Act; Systems of Records, 65620-65622 2024-16354 Federal Aviation Federal Aviation Administration PROPOSED RULES Airworthiness Directives: Saab AB Airplanes, 65568-65572 2024-17834 NOTICES Hearings, Meetings, Proceedings, etc.: National Parks Overflights Advisory Group, 65701-65702 2024-17848 Federal Communications Federal Communications Commission PROPOSED RULES Petition for Reconsideration of Action in Rulemaking Proceeding, 65576 2024-17837 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 65622-65623 2024-17906 Hearings, Meetings, Proceedings, etc., 65622 2024-17840 Hearings, Meetings, Proceedings, etc.: Task Force for Reviewing the Connectivity and Technology Needs of Precision Agriculture in the United States, 65624 2024-17827 Privacy Act; Matching Program, 65623-65625 2024-17838 2024-17839 Federal Deposit Federal Deposit Insurance Corporation PROPOSED RULES Parent Companies of Industrial Banks and Industrial Loan Companies, 65556-65568 2024-17637 Federal Election Federal Election Commission NOTICES Meetings; Sunshine Act, 65625 2024-18024 Federal Emergency Federal Emergency Management Agency NOTICES Flood Hazard Determinations, 65641-65651 2024-17829 2024-17830 2024-17831 2024-17832 2024-17833 Federal Motor Federal Motor Carrier Safety Administration NOTICES Exemption Application: Qualification of Drivers; Epilepsy and Seizure Disorders, 65703-65707 2024-17800 2024-17801 2024-17803 Qualification of Drivers; Hearing, 65702-65703 2024-17802 Federal Reserve Federal Reserve System NOTICES Change in Bank Control: Acquisitions of Shares of a Bank or Bank Holding Company, 65625-65626 2024-17925 Federal Transit Federal Transit Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Survey of Stakeholders, 65707-65708 2024-17850 Fish Fish and Wildlife Service RULES Endangered and Threatened Species: Entries for Coral Species and Adding Nonessential Experimental Populations of Chinook Salmon, 65552-65554 2024-17435 Food and Drug Food and Drug Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Risk/Safety Considerations and Motivations for Purchase and Use of Kratom and Psychedelics Alone and in Combination with Other Substances; Withdrawal, 65635 2024-17793 Hearings, Meetings, Proceedings, etc.: Advancing Rare Disease Therapies Through a Food and Drug Administration Rare Disease Innovation Hub, 65631-65633 2024-17924 Development of an Enhanced Systematic Process for the Post-Market Assessment of Chemicals in Food, 65633-65635 2024-17791 Gastrointestinal Drugs Advisory Committee, 65635-65637 2024-17926 Foreign Assets Foreign Assets Control Office NOTICES Sanctions Action, 65716-65717 2024-17814 Foreign Trade Foreign-Trade Zones Board NOTICES Authorization of Production Activity: Jubilant HollisterStier, LLC, Foreign-Trade Zone 224, Spokane, WA, 65583 2024-17904 General Services General Services Administration NOTICES Environmental Impact Statements; Availability, etc.: Kenneth G. Ward (Lynden) and Sumas Land Ports of Entry Modernization and Expansion Projects in Lynden and Sumas, WA; Floodplain Assessment and Statement of Findings, 65626-65628 2024-17864 Hearings, Meetings, Proceedings, etc.: Office of Government-wide Policy Emerging Trends and Policy Symposium, 65626 2024-17866 Health and Human Health and Human Services Department See Agency for Healthcare Research and Quality See Centers for Medicare & Medicaid Services See Food and Drug Administration See Health Resources and Services Administration Health Resources Health Resources and Services Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: COVID-19 Provider Relief Programs Single and Commercial Audits and Delinquent Audit Reporting Submission Activities, 65637-65638 2024-17907 Extension and Supplemental Award: Living Organ Donation Reimbursement Program, 65639-65640 2024-17810 Supplemental Funding: Regional Pediatric Pandemic Network Award Recipients, 65638-65639 2024-17821 Homeland Homeland Security Department See Coast Guard See Federal Emergency Management Agency See U.S. Customs and Border Protection NOTICES Hearings, Meetings, Proceedings, etc.: National Security Telecommunications Advisory Committee, 65652 2024-17790 Housing Housing and Urban Development Department NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: ConnectHomeUSA, 65652-65653 2024-17806 Management Certification and Entity Profile, 65656-65657 2024-17826 Request for Information: Choice Neighborhoods Grant Selection Process and Award Implementation, 65653-65656 2024-17822 Interior Interior Department See Fish and Wildlife Service See Land Management Bureau See National Park Service Internal Revenue Internal Revenue Service NOTICES Hearings, Meetings, Proceedings, etc.: Taxpayer Advocacy Panel Joint Committee, 65717 2024-17812 Taxpayer Advocacy Panel Taxpayer Assistance Center Improvements Project Committee, 65718 2024-17808 Taxpayer Advocacy Panel Taxpayer Communications Project Committee, 65717-65718 2024-17815 Taxpayer Advocacy Panel's Notices and Correspondence Project Committee, 65718 2024-17811 Taxpayer Advocacy Panel's Special Projects Committee, 65718 2024-17816 Taxpayer Advocacy Panel's Tax Forms and Publications Project Committee, 65717 2024-17807 Taxpayer Advocacy Panel's Toll-Free Phone Lines Project Committee, 65719 2024-17809 International Trade Adm International Trade Administration NOTICES Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Certain Collated Steel Staples from the People's Republic of China, 65598-65601 2024-17910 Certain Corrosion-Resistant Steel Products from the Republic of Korea, 65586-65588, 65596-65598 2024-17858 2024-17911 Certain Steel Nails from the Republic of Korea, 65588-65591 2024-17903 Certain Steel Nails from the Sultanate of Oman, 65593-65596 2024-17912 Polyethylene Terephthalate Film, Sheet, and Strip from India, 65591-65593 2024-17859 Scope Ruling Applications, 65584-65585 2024-17854 Stainless Steel Sheet and Strip in Coils from the Republic of Korea, 65601-65602 2024-17855 Utility Scale Wind Towers from the People's Republic of China and the Socialist Republic of Vietnam, 65585-65586 2024-17856 Sales at Less Than Fair Value; Determinations, Investigations, etc.: Certain Epoxy Resins from the People's Republic of China, India, the Republic of Korea, Taiwan, and Thailand, 65583-65584 2024-17857 International Trade Com International Trade Commission NOTICES Investigations; Determinations, Modifications, and Rulings, etc.: Certain Electronic Devices and Semiconductor Devices Having Wireless Communication Capabilities and Components Thereof, 65669-65670 2024-17836 Certain Integrated Circuits, Components Thereof, and Products Containing the Same, 65670-65671 2024-17841 Ferrosilicon from Brazil, Kazakhstan, Malaysia, and Russia, 65671-65672 2024-17817 Labor Department Labor Department See Disability Employment Policy Office See Occupational Safety and Health Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Claim for Schedule Award, 65673-65674 2024-17795 Land Land Management Bureau NOTICES Plats of Survey: Mississippi, 65657 2024-17797 Legal Legal Services Corporation RULES Governing Bodies, 65550-65552 2024-17729 Morris K. Morris K. and Stewart L. Udall Foundation NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 65679-65680 2024-17798 NASA National Aeronautics and Space Administration NOTICES Hearings, Meetings, Proceedings, etc.: Human Exploration and Operations Committee, 65680 2024-17917 National Endowment for the Humanities National Endowment for the Humanities NOTICES Hearings, Meetings, Proceedings, etc.: Humanities Panel, 65681-65682 2024-17900 National Foundation National Foundation on the Arts and the Humanities See National Endowment for the Humanities National Highway National Highway Traffic Safety Administration NOTICES Petition for Decision of Inconsequential Noncompliance: Approvals, 65708-65713 2024-17818 National Institute National Institute of Standards and Technology NOTICES Carbon Dioxide Removal Consortium, 65602-65603 2024-17849 National Oceanic National Oceanic and Atmospheric Administration RULES Fisheries of the Northeastern United States: Blueline Tilefish Fishery; In-season Adjustment to the Blueline Tilefish Commercial Possession Limit, 65554-65555 2024-17901 PROPOSED RULES Fisheries of the Northeastern United States: Framework Adjustment 15 to the Monkfish Fishery Management Plan; Framework Adjustment 6 to the Spiny Dogfish Fishery Management Plan, 65576-65580 2024-17734 NOTICES Hearings, Meetings, Proceedings, etc.: Marine and Coastal Area-Based Management Advisory Committee, 65603-65604 2024-17718 Space Weather Advisory Group, 65604-65605 2024-17872 Permits; Applications, Issuances, etc.: Endangered and Threatened Species; Take of Anadromous Fish, 65605-65606 2024-17799 National Park National Park Service NOTICES Inventory Completion: Field Museum, Chicago, IL, 65658-65659 2024-17883 New York State Museum, Albany, NY, 65662-65663 2024-17881 U.S. Army Corps of Engineers, Omaha District, Omaha, NE, 65661-65662 2024-17876 U.S. Army Corps of Engineers, Omaha District, Omaha, NE, and the University of Tennessee, Knoxville, Department of Anthropology, Knoxville, TN, 65660-65661 2024-17878 University of California, Riverside, Riverside, CA, 65663-65665 2024-17879 Wesleyan University, Middletown, CT, 65657-65658, 65665-65666 2024-17874 2024-17875 National Register of Historic Places: Pending Nominations and Related Actions, 65666-65667 2024-17898 Repatriation of Cultural Items: New York State Museum, Albany, NY, 65669 2024-17882 U.S. Army Corps of Engineers, Omaha District, Omaha, NE, and University of Tennessee, Knoxville, Department of Anthropology, Knoxville, TN, 65667-65669 2024-17877 University of California, Riverside, Riverside, CA, 65659 2024-17880 Nuclear Regulatory Nuclear Regulatory Commission NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Standards for Protection Against Radiation, 65683-65684 2024-17853 Meetings; Sunshine Act, 65682-65683 2024-17942 Occupational Safety Health Adm Occupational Safety and Health Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Asbestos in Construction Standard, 65676-65677 2024-17891 Vertical Tandem Lifts for Marine Terminals, 65678-65679 2024-17886 Nationally Recognized Testing Laboratories: TUV Rheinland of North America, Inc.; Grant of Expansion of Recognition, 65677-65678 2024-17794 TUV SUD America, Inc.; Grant of Expansion of Recognition, 65674-65676 2024-17905 Pipeline Pipeline and Hazardous Materials Safety Administration NOTICES Permits; Applications, Issuances, etc.: Hazardous Materials, 65713-65716 2024-17920 2024-17921 2024-17922 Postal Regulatory Postal Regulatory Commission NOTICES New Postal Products, 65684-65685 2024-17893 Postal Service Postal Service NOTICES International Product Change: Priority Mail Express International, Priority Mail International and First-Class Package International Service Agreement, 65685 2024-17835 Securities Securities and Exchange Commission NOTICES Meetings; Sunshine Act, 65690 2024-18006 Self-Regulatory Organizations; Proposed Rule Changes: Cboe EDGX Exchange, Inc., 65689-65690 2024-17844 Nasdaq ISE, LLC, 65685-65694 2024-17842 2024-17843 The Options Clearing Corp., 65695-65700 2024-17847 Small Business Small Business Administration NOTICES Disaster Declaration: Florida, 65700 2024-17863 Hearings, Meetings, Proceedings, etc.: National Small Business Development Center Advisory Board, 65700-65701 2024-17865 State Department State Department NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Pre-Employment Medical and Driver Evaluation Forms, 65701 2024-17894 Codex The U.S. Codex Office NOTICES Hearings, Meetings, Proceedings, etc.: Codex Alimentarius Commission; Committee on Fish and Fishery Products, 65581-65582 2024-17820 Codex Alimentarius Commission; Committee on Residues of Veterinary Drugs in Foods, 65582-65583 2024-17825 Transportation Department Transportation Department See Federal Aviation Administration See Federal Motor Carrier Safety Administration See Federal Transit Administration See National Highway Traffic Safety Administration See Pipeline and Hazardous Materials Safety Administration RULES Refunds and Other Consumer Protections (2024 FAA Reauthorization), 65534-65538 2024-17602 Treasury Treasury Department See Bureau of the Fiscal Service See Foreign Assets Control Office See Internal Revenue Service RULES Import Restrictions: Certain Archaeological Material of Algeria, 65539-65540 2024-17892 Customs U.S. Customs and Border Protection RULES Import Restrictions: Certain Archaeological Material of Algeria, 65539-65540 2024-17892 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Automated Clearinghouse, 65640-65641 2024-17824 Transportation Entry and Manifest of Goods Subject to CBP Inspection and Permit, 65640 2024-17823 Unified Unified Carrier Registration Plan NOTICES Meetings; Sunshine Act, 65719-65720 2024-18033 Veteran Affairs Veterans Affairs Department PROPOSED RULES Veterans Legacy Grants Program Improvements, 65572-65575 2024-17316 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Request for Substitution of Claimant Upon Death of Claimant, 65721 2024-17868 Hearings, Meetings, Proceedings, etc.: Veterans' Advisory Committee on Rehabilitation, 65720-65721 2024-17873 Separate Parts In This Issue Part II Health and Human Services Department, Centers for Medicare & Medicaid Services, 65724-65754 2024-17603 Reader Aids Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, and notice of recently enacted public laws. To subscribe to the Federal Register Table of Contents electronic mailing list, go to https://public.govdelivery.com/accounts/USGPOOFR/subscriber/new, enter your e-mail address, then follow the instructions to join, leave, or manage your subscription. 89 155 Monday, August 12, 2024 Rules and Regulations DEPARTMENT OF AGRICULTURE Agricultural Marketing Service 7 CFR Part 930 [Doc. No. AMS-SC-23-0074] Tart Cherries Grown in the States of Michigan, et al.; Free and Restricted Percentages for the 2023-24 Crop Year AGENCY: Agricultural Marketing Service, Department of Agriculture (USDA). ACTION: Final rule. SUMMARY: This rule implements a recommendation from the Cherry Industry Administrative Board (Board) to establish free and restricted percentages for the 2023-24 crop year under the Federal marketing order for tart cherries grown in the States of Michigan, New York, Pennsylvania, Oregon, Utah, Washington, and Wisconsin. This action establishes the proportion of tart cherries from the 2023-24 crop that may be handled in commercial outlets. Adjusting supply to meet market demand should stabilize marketing conditions and help improve grower returns. DATES: Effective September 11, 2024. FOR FURTHER INFORMATION CONTACT: Steven W. Kauffman, Marketing Specialist, or Christian D. Nissen, Chief, Southeast Region Branch, Market Development Division, Specialty Crops Program, AMS, USDA; Telephone:
(863)324-3375, or Email: *Steven.Kauffman@usda.gov* or *Christian.Nissen@usda.gov.* Small businesses may request information on complying with this regulation by contacting Richard Lower, Market Development Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue SW, STOP 0237, Washington, DC 20250-0237; Telephone:
(202)720-8085, or Email: *Richard.Lower@usda.gov.* SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553, amends regulations issued to carry out a marketing order as defined in 7 CFR 900.2(j). This rule is issued under Marketing Order No. 930, as amended (7 CFR part 930), regulating the handling of tart cherries produced in the States of Michigan, New York, Pennsylvania, Oregon, Utah, Washington, and Wisconsin. Part 930 (referred to as the “Order”) is effective under the Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C. 601-674), hereinafter referred to as the “Act.” The Board locally administers the Order and is comprised of growers and handlers of tart cherries operating within the production area, and a public member. The Agricultural Marketing Service
(AMS)is issuing this rule in conformance with Executive Orders 12866, 13563, and 14094. 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, reducing costs, harmonizing rules, and promoting flexibility. Executive Order 14094 reaffirms, supplements, and updates Executive Order 12866 and further directs agencies to solicit and consider input from a wide range of affected and interested parties through a variety of means. This action falls within a category of regulatory actions that the Office of Management and Budget
(OMB)exempted from Executive Order 12866 review. This rule has been reviewed under Executive Order 13175—Consultation and Coordination with Indian Tribal Governments, which requires agencies to consider whether their rulemaking actions would have Tribal implications. AMS has determined that this rule is unlikely to have substantial direct effects on one or more Indian Tribes, on the relationship between the Federal Government and Indian Tribes, or on the distribution of power and responsibilities between the Federal Government and Indian Tribes. This rule has been reviewed under Executive Order 12988—Civil Justice Reform. Under the Order provisions now in effect, free and restricted percentages may be established for tart cherries for the 2023-24 crop year. This rule establishes free and restricted percentages for the 2023-24 crop year, beginning July 1, 2023, through June 30, 2024. The Act provides that administrative proceedings must be exhausted before parties may file suit in court. Under section 608c(15)(A) of the Act, any handler subject to an order may file with the U.S. Department of Agriculture
(USDA)a petition stating that the marketing order, any provision of the marketing order, or any obligation imposed in connection with the marketing order is not in accordance with law and requesting a modification of the marketing order or to be exempted therefrom. Such handler is afforded the opportunity for a hearing on the petition. After the hearing, USDA would rule on the petition. The Act provides that the district court of the United States in any district in which the handler is an inhabitant, or has his or her principal place of business, has jurisdiction to review USDA's ruling on the petition, provided an action is filed no later than 20 days after the date of the entry of the ruling. This rule establishes the proportion of tart cherries from the 2023-24 crop which may be handled at 94 percent free and 6 percent restricted. The Secretary of Agriculture (Secretary) has determined that designating free and restricted percentages of tart cherries for the 2023-24 crop year would effectuate the declared policy of the Act to stabilize marketing conditions by adjusting supply to meet market demand and help improve grower returns. These recommendations were made by the Board at a meeting on September 14, 2023, and reaffirmed at a meeting on December 14, 2023. Section 930.51(a) provides the Secretary authority to regulate volume by designating free and restricted percentages for any tart cherries acquired by handlers in a given crop year. Section 930.50 prescribes procedures for computing an optimum supply based on sales history and for calculating these free and restricted percentages. Free percentage volume may be shipped to any market, while restricted percentage volume must be held by handlers in a primary or secondary reserve, or be diverted, or used for exempt purposes as prescribed in §§ 930.159 and 930.162. Exempt purposes include, in part, the development of new products, sales into new markets, the development of export markets, and charitable contributions. Sections 930.55 through 930.57 prescribe procedures for inventory reserve. For cherries held in inventory reserve, handlers are responsible for storage and retain title of the tart cherries. Under § 930.52, only districts in which the average annual production of cherries over the prior three years has exceeded six million pounds are subject to volume regulation, and any district producing a crop that is less than 50 percent of its annual average processed production in the previous five years would be exempt from any volume regulation. The regulated districts for the 2023-24 crop year are: District 1—Northern Michigan; District 2—Central Michigan; District 3—Southern Michigan; District 4—New York; District 7—Utah; District 8—Washington; and District 9—Wisconsin. Districts 5 and 6 (Oregon and Pennsylvania, respectively) will not be regulated for the 2023-24 season. Demand for tart cherries and tart cherry products tends to be relatively stable despite the variance in production volume that industry may experience from year to year. Additionally, once processed, tart cherries can be stored and carried over from crop year to crop year, further impacting supply. The Board is aware of this economic relationship and focuses on using the volume control provisions in the marketing order to balance supply and demand to stabilize industry returns. Pursuant to § 930.50, the Board meets on or about July 1 to review sales data, inventory data, current crop forecasts, and market conditions for the upcoming season and, if necessary, to recommend preliminary free and restricted percentages if anticipated supply exceeds demand. After harvest is complete, but no later than September 15, the Board meets again to update its calculations using actual production data, consider any necessary adjustments to the preliminary percentages, and determine if final free and restricted percentages should be recommended to the Secretary. The Board uses sales history, inventory, and production data to determine whether a surplus exists and how much volume should be restricted to maintain optimum supply. The optimum supply represents the desirable volume of tart cherries that should be available for sale in the coming crop year. Optimum supply is defined as the average free sales of the prior three years plus desirable carry-out inventory. Desirable carry-out is the amount of fruit needed by the industry to be carried into the succeeding crop year to meet market demand until the new crop is available. Desirable carry-out is recommended by the Board after considering market circumstances and needs. Section 930.151(b) specifies that desirable carry-out can range from zero to a maximum of 100 million pounds. In addition, § 930.50(g) specifies that in years when restricted percentages are established, the Board shall make available tonnage equivalent to an additional 10 percent of the average sales of the prior three years for market expansion. This requirement is in USDA's “Guidelines for Fruit, Vegetable, and Specialty Crop Marketing Orders” ( *https://www.ams.usda.gov/publications/content/1982-guidelines-fruit-vegetable-marketing-orders* ), which specify that 110 percent of recent years' sales should be made available to primary markets each season before recommendations for volume regulation are approved. After the Board determines the optimum supply, desirable carry-out, and market growth factor, it must examine the current year's available volume to determine whether an oversupply might occur. Available volume includes carry-in inventory (any inventory available at the beginning of the season) along with that season's production. If production plus the carry-in inventory is greater than the optimum supply (3-year sales average plus the targeted carry-out), then the difference is considered surplus. The ten percent market expansion factor and any economic adjustments recommended by the Board are then subtracted from this surplus number to arrive at an adjusted surplus. This adjusted surplus tonnage is divided by the sum of production in the regulated districts to reach a restricted percentage. This percentage must be held in reserve or used for approved diversion activities, such as exports, new products, or new market activities. The Board met on June 22, 2023, and computed an optimum supply of 279.2 million pounds for the 2023-24 crop year using the average of free sales for the three previous seasons plus the desirable carry-out. To determine the carry-out figure, the Board discussed a range of alternatives. One member recommended a carry-out value of 85 million pounds, noting he did not think 100 million pounds was necessary to keep the markets supplied. Another member suggested a 70-million-pound carry-out and stated the industry does not need all those cherries in inventory and there will be fewer growers in the future if the market is oversupplied. Other members were concerned that 70 million pounds was too low to satisfy the demand prior to the new crop being available. Discussion also included that the carryover should be enough to supply the needs of the industry in case of a disaster and that the carryover should also reflect the increased number of tart cherry products now supplied to the market. Other members noted that more supply is also needed due to new food safety requirements being implemented. After considering the alternatives, the Board determined a carry-out of 85 million pounds will be enough to supply the industry's needs at the beginning of the next season. The Board subtracted the carry-in inventory available on June 1 of 137.2 million pounds from the optimum supply to calculate the production quantity needed from the 2023-24 crop to meet optimum supply. This number, 142 million pounds, was subtracted from the Board's estimated 2023-24 total production of 175.2 million pounds (from regulated and unregulated districts) to calculate a surplus of 33.2 million pounds of tart cherries. The Board also complied with the market expansion factor requirement by removing 19.4 million pounds (average sales for prior three years of 194.2 million times 10 percent) from the surplus. The adjusted surplus of 13.8 million pounds was then divided by the expected production in the regulated districts (173.5 million pounds) to reach a preliminary restricted percentage of 8 percent for the 2023-24 crop year. The Board then discussed whether this calculation would supply enough cherries to grow sales and fulfill orders that have not yet shipped. Some members stated that the Board should account for some large late season demand purchases by the USDA, which should account for approximately 26 million pounds raw product equivalent. After discussing multiple motions for an economic adjustment ranging from 0 to 26 million pounds, the Board did not recommend a preliminary economic adjustment at the June meeting. Without an economic adjustment, the preliminary restricted percentage remained at 8 percent. With this relatively small restriction, the Board did not anticipate significant orchard diversion. The Board met again on September 14, 2023, to consider final volume regulation percentages for the 2023-24 season. The final percentages are based on the Board's reported production figures and the supply and demand information available in September. The total production for the 2023-24 season reported at the September meeting was 202.7 million pounds. This exceeded the Board's June production estimate by 27.5 million pounds. In addition, growers diverted 6.86 million pounds in the orchard, lowering the available production for market. As a result, 195.8 million pounds of production will be available to the market, 193.4 million pounds of which are in the districts subject to volume regulation. The Board accounted for the recommended desirable carry-out and economic adjustment, as well as the market growth factor, and recalculated the restricted percentage using the actual production numbers. The Board subtracted the carry-in figure used in June of 137.2 million pounds, from the optimum supply of 279.2 million pounds to determine 142 million pounds of 2023-24 production would be necessary to reach optimum supply. The Board subtracted the 142 million pounds from the actual production of 202.7 million pounds, resulting in a surplus of 60.7 million pounds of tart cherries. At its June meeting, the Board did not recommend making an economic adjustment of the optimum supply calculation to address unexpected factors that could have a bearing on the marketing of tart cherries. However, in September, following another discussion of a late seasonal purchase made by USDA, and the possible impact on the available supply, the Board recommended an economic adjustment of 30 million pounds to ensure sufficient inventory was available to meet demand. The Board also discussed the impact of imported tart cherries on the domestic market. Imports have been an important topic of discussion for the Board when considering preliminary and final volume recommendations since the demand for tart cherries is inelastic. In June, the Board received a presentation indicating tart cherry imports were only approximately 1/7 of the volume previously reported. At the September meeting, AMS verified the industry report and confirmed that tart cherry imports were considerably less than previously reported. As a result, the Board did not recommend making an additional economic adjustment based on imports. The calculated surplus was reduced by subtracting the economic adjustment of 30 million pounds from the September meeting and the market growth factor of 19.4 million pounds, resulting in an adjusted surplus of 11.25 million pounds. The Board then divided the adjusted surplus by the available production of 193.4 million pounds (202.66 million pounds minus 6.86 million pounds of in-orchard diversion minus 2.44 million pounds from unregulated districts) in the regulated districts to calculate a restricted percentage of 5.8 percent. The Board rounded this number up, and recommended a 6 percent restriction (11.6 million pounds) with a corresponding free percentage of 94 percent (181.8 million pounds) in the regulated districts for the 2023-24 crop year, as outlined in the following table from the September meeting: Millions of pounds September Calculations:
(1)Average sales of the prior three years 194.2
(2)Desirable carry-out 85
(3)Optimum supply calculated by the Board (item 1 plus item 2) 279.2
(4)Carry-in as of July 1, 2023 137.2
(5)Adjusted optimum supply (item 3 minus item 4) 142
(6)Board reported production 202.7
(7)Surplus (item 6 minus item 5) 60.7
(8)Total economic adjustments 30
(9)Market growth factor 19.4
(10)Adjusted Surplus (item 7 minus items 8 and 9) 11.25
(11)Production in regulated districts 200.2
(12)In-Orchard Diversion 6.86
(13)Production minus in-orchard diversion 193.4 Final Percentages: Percent Restricted (item 10 divided by item 13 × 100) 6 Free (100 minus restricted percentage) 94 The final restriction of 6 percent is lower than the preliminary restriction percentage of 8 percent. The change is due to the increase in production of 27.5 million pounds more in total production above the June estimate, and the 30-million-pound economic adjustment the Board made in September. The desired carry-out remained the same at 85 million pounds. After the September meeting, industry reported an additional 3.24 million pounds of production that was not accounted for at the September meeting. The Board met again on December 14, 2023, and reviewed the impact of this additional production on the free and restricted percentages recommended at the September meeting. The inclusion of the additional 3.24 million pounds would increase the surplus from approximately 60.7 to 63.9 million pounds. Given no further changes to the other numbers incorporated in the September calculation, this surplus change would increase the restricted percentage to 7.4 percent. The Board discussed maintaining the final restriction at 6 percent as recommended in September. Members recognized that this would relieve the industry from the burden of having to meet an increased reserve requirement of 1.4 percent more (7.4%−6% = 1.4%). Since the industry makes business decisions based on the June estimates and the final recommendation from September, a late season increase to the reserve requirement could have a negative impact on some industry members. After discussing the possible impact of the increased production, the Board unanimously recommended increasing the economic adjustment by the 3.24 million pounds of additional production to offset its impact on available supply and to leave the percentages recommended in September in place with 94 percent free and 6 percent restricted for the 2023-24 season. With these changes, the total production increased from 202.7 million pounds to 205.9 million pounds and the surplus rose to 63.9 million pounds. The economic adjustment shifted from 30 million pounds to 33.24 million pounds, balancing out the additional surplus. Using the new production number and the revised economic adjustment to recalculate the restricted percentage, and rounding up, results in a 6 percent restriction percentage as recommended at the September meeting, as outlined in the following table from the December meeting: Millions of pounds Final Calculations:
(1)Average sales of the prior three years 194.2
(2)Desirable carry-out 85
(3)Optimum supply calculated by the Board (item 1 plus item 2) 279.2
(4)Carry-in as of July 1, 2023 137.2
(5)Adjusted optimum supply (item 3 minus item 4) 142
(6)Board reported production 205.9
(7)Surplus (item 6 minus item 5) 63.9
(8)Total economic adjustments 33.24
(9)Market growth factor 19.4
(10)Adjusted Surplus (item 7 minus items 8 and 9) 11.25
(11)Production in regulated districts 203.46
(12)In-Orchard Diversion 6.86
(13)Production minus in-orchard diversion 196.6 Final Percentages: Percent Restricted (item 10 divided by item 13 × 100) 6 Free (100 minus restricted percentage) 94 Establishing free and restricted percentages is an attempt to bring supply and demand into balance. If the primary market is oversupplied with cherries, grower prices decline substantially. Restricted percentages have benefited grower returns and helped stabilize the market as compared to those seasons prior to the implementation of the Order. The Board, based on its discussion of this issue and the results of the above calculations, believes the available information indicates a restricted percentage should be established for the 2023-24 crop year to avoid oversupplying the market with tart cherries. Consequently, the Board recommended final percentages of 94 percent free and 6 percent restricted by a vote of 12 in favor, and 4 opposed on September 14, 2023, but later unanimously recommended the same percentages at the meeting on December 14, 2023. The Board could meet during the crop year, and if conditions so warranted, recommend the release of additional volume. The Secretary finds, from the recommendation and supporting information supplied by the Board, that designating final percentages of 94 percent free and 6 percent restricted tends to effectuate the declared policy of the Act, and so designates these percentages. Final Regulatory Flexibility Analysis Pursuant to requirements set forth in the Regulatory Flexibility Act
(RFA)(5 U.S.C. 601-612), AMS has considered the economic impact of this rule on small entities. Accordingly, AMS has prepared this final regulatory flexibility analysis. The purpose of the RFA is to fit regulatory actions to the scale of businesses subject to such actions in order that small businesses will not be unduly or disproportionately burdened. Marketing orders issued pursuant to the Act, and the rules issued thereunder, are unique in that they are brought about through group action of essentially small entities acting on their own behalf. There are approximately 400 growers of tart cherries in the regulated area and approximately 30 handlers of tart cherries who are subject to regulation under the Order. At the time this analysis was prepared, the Small Business Administration
(SBA)defined small agricultural growers of tart cherries as those having annual receipts equal to or less than $3.5 million (NAICS code—111339, Other Noncitrus Fruit Farming), and small agricultural service firms, including handlers, were defined as those whose annual receipts are equal to or less than $34 million (NAICS code 11514, Postharvest Crop Activities) (13 CFR 121.201). According to data from the National Agricultural Statistics Service (NASS), the 2022-2023 season average grower price for tart cherries utilized for processing was approximately $0.218 per pound. With total utilization for processing at 241.6 million pounds for the 2022-23 season, the total 2022-23 value of the crop utilized for processing is estimated at $52.7 million. Dividing the crop value by the estimated number of growers
(400)yields an estimated average annual receipts per grower of approximately $132,000. This is well below the $3.5 million SBA threshold for small growers. An estimate of the season average price per pound received by handlers for processed tart cherries was derived from USDA's purchases of dried tart cherries for feeding programs in 2023, which had an average price of $4.72 per pound. The dried cherry price was converted to a raw product equivalent price of $0.94 per pound at an industry recognized ratio of five to one. Based on utilization, this price represents a good estimate of the price for processed cherries. Multiplying this price by total processed utilization of 241.5 million pounds results in an estimated handler-level tart cherry value of $227 million. Dividing this figure by the number of handlers ($227 million divided by 30 handlers) yields estimated average annual receipts per handler of approximately $7.6 million, which is well below the SBA threshold of $34 million for small agricultural service firms. Assuming a normal distribution, the majority of growers and handlers of tart cherries may be classified as small entities. The tart cherry industry in the United States is characterized by wide annual fluctuations in production. According to NASS, the pounds of tart cherry production utilized for processing for the years 2019 through 2022 were 234 million, 138 million, 171 million, and 241 million, respectively. Because of these fluctuations, supply and demand for tart cherries are rarely in balance. Demand for tart cherries is inelastic, meaning changes in price have a minimal effect on total sales volume. However, prices are very sensitive to changes in supply, and grower prices vary widely in response to the large swings in annual supply. Grower prices per pound for processed utilization have ranged from a low of $0.07 in 1987 to a high of $0.59 per pound in 2012 when a weather event substantially reduced supply. Grower prices per pound for processed utilization over the most recent three years for which data is available (2020 through 2022) were $0.38, $0.50, and $0.22, respectively. Because of this relationship between supply and price, oversupplying the market with tart cherries would have a sharp negative effect on prices, driving down grower returns. Aware of this economic relationship, the Board focuses on using the volume control authority in the Order to align supply with demand and stabilize industry returns. This authority allows the industry to set free and restricted percentages to bring supply and demand into balance. Free percentage cherries can be marketed by handlers to any outlet, while restricted percentage volume must be held by handlers in reserve, diverted, or used for exempted purposes. This rule establishes 2023-24 crop year percentages of 94 percent free and 6 percent restricted. These percentages should stabilize marketing conditions by adjusting supply to meet market demand and help improve grower returns. The rule regulates tart cherries handled in Michigan, Utah, Washington, Wisconsin, and New York. The authority for this action is provided in §§ 930.50, 930.51(a), and 930.52. The Board recommended this action at meetings on September 14, 2023, and December 14, 2023. This action will result in some fruit being diverted from the primary domestic markets as authorized in the Order's marketing policy in § 930.50. However, as mentioned earlier, the USDA's “Guidelines for Fruit, Vegetable, and Specialty Crop Marketing Orders” ( *https://www.ams.usda.gov/publications/content/1982-guidelines-fruit-vegetable-marketing-orders* ) specify that 110 percent of recent years' sales should be made available to primary markets each crop year per § 930.50(g), before recommendations for volume regulation are approved. Under this action, the available quantity of 324.4 million pounds (Free production of 184.8 million plus a carry-in of 137.2 million plus 2.4 million pounds unregulated) is 167 percent of the average sales for the last three years (194.2 million pounds). In addition, there are secondary uses available for restricted fruit, including the development of new products, sales into new markets, the development of export markets, and being placed in reserve. While these alternatives may provide different levels of return than the sales to primary markets, they play an important role for the industry. The areas of new products, new markets, and the development of export markets utilize restricted fruit to develop and expand the markets for tart cherries. Placing tart cherries into reserves is also a key part of balancing supply and demand. Although handlers bear the handling and storage costs for fruit in reserve, reserves stored in large crop years can be used to supplement supplies in short crop years. The reserves help the industry to mitigate the impact of oversupply in large crop years, while allowing the industry to supply markets in years when production falls below demand. During the 2020-21 season, the Board voted to release all fruit in the reserve into the primary market to increase supply. In considering the establishment of free and restricted percentages, the Board recommended a carry-out of 85 million pounds to help ensure sufficient product to meet demand until availability of the following year's crop and to allow for inventory to span the lead-time on processing new products. The Board also recommended a demand adjustment of 33.24 million pounds. These numbers, along with carry-in, production in the unregulated districts, and free tonnage from the regulated districts, will make 324.4 million pounds of fruit available for the domestic market. This amount exceeds the 317.4 million pounds available in the previous season when the industry did not regulate the volume on the market. Even with the recommended restriction, the domestic market will have an ample supply of tart cherries. Further, should marketing conditions change, and market demand exceed the existing supplies, the Board could meet and recommend the release of additional reserves up to 11.8 million pounds of tart cherries. Consequently, it is not anticipated that this action will unduly burden growers or handlers. While this action may result in some additional costs to the industry, these costs are outweighed by the benefits. The purpose of setting restricted percentages is to attempt to bring supply and demand into balance. If the primary market (domestic) is oversupplied with cherries, grower prices decline substantially. Without volume control, the primary market would likely be oversupplied, resulting in lower grower prices. An AMS econometric model used to assess the impact volume control has on the price growers receive for their product estimated that volume control should have a positive impact on grower returns for this crop year. With volume control, grower prices are estimated to be about nine tenths of a cent higher than without restrictions. In addition, absent volume control, the industry could start to build large amounts of unwanted inventories, which in turn, could have a depressing effect on grower prices. Retail demand is assumed to be inelastic, which indicates changes in price do not result in significant changes in the quantity demanded. Consumer prices largely do not reflect fluctuations in cherry supplies. Therefore, this action should have little or no effect on consumer prices and should not result in a reduction in retail sales. The free and restricted percentages established by this final rule will provide the market with optimum supply and apply uniformly to all regulated handlers in the industry, regardless of size. As the restriction represents a percentage of a handler's volume, the costs, when applicable, are proportionate and should not place an extra burden on small entities as compared to large entities. The stabilizing effects of this rule will benefit all handlers by helping them maintain and expand markets, despite seasonal supply fluctuations. Likewise, price stability positively impacts all growers and handlers by allowing them to better anticipate the revenues their tart cherries will generate. Growers and handlers, regardless of size, will benefit from the stabilizing effects of the volume restriction. As noted earlier, the Board discussed several carry-out inventory alternatives, ranging from 70 million pounds to 100 million pounds. The Board noted if the carry-out number was too large, it could have a negative impact on grower returns, and if it was too small, it could negatively impact the supply processors need before the harvest next season. After consideration of the alternatives, the Board recommended a carry-out of 85 million pounds. The Board also weighed alternatives when discussing the economic adjustment. At its June meeting, the Board did not recommend making an economic adjustment after considering alternatives that included making no economic adjustment or an economic adjustment of 26 million pounds. However, in September, the Board revisited the issue and after discussion, and considering the impact of purchases by the USDA on available supply, recommended an economic adjustment of 30 million pounds. Additionally, the Board met again on December 14, 2023, and unanimously recommended adding another 3.24 million pounds to the economic adjustment to reflect the additional production volume. Given the concerns with regulation expressed by Board members and industry members in attendance, the Board also considered recommending no volume regulation. However, after considering the larger than expected harvest and the carry-in inventory adding to the available supply, the industry recommended a six percent restriction to the 2023-24 crop. Thus, the alternatives were rejected. The Board's meetings were widely publicized throughout the tart cherry industry and all interested persons were invited to attend the meetings and participate in Board deliberations on all issues. Like all Board meetings, the June, September, and December meetings were public meetings and all entities, both large and small, were able to express views on this issue. Finally, interested persons were invited to submit comments on this rule, including the regulatory and informational impacts of this action on small businesses. In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. chapter 35), the Order's information collection requirements have been previously approved by OMB and assigned OMB No. 0581-0177, Tart Cherries Grown in the States of Michigan, New York, Pennsylvania, Oregon, Utah, Washington, and Wisconsin. No changes are necessary in those requirements as a result of this action. Should any changes become necessary, they would be submitted to OMB for approval. This rule will not impose any additional reporting or recordkeeping requirements on either small or large tart cherry handlers. As with all Federal marketing order programs, reports and forms are periodically reviewed to reduce information requirements and duplication by industry and public sector agencies. AMS is committed to complying with the E-Government Act, to promote the use of the internet and other information technologies to provide increased opportunities for citizen access to Government information and services, and for other purposes. AMS has not identified any relevant Federal rules that duplicate, overlap or conflict with this rule. A proposed rule concerning this action was published in the **Federal Register** on April 19, 2024 (89 FR 28682). Copies of the proposed rule were sent via email to all Board members and tart cherry handlers. The proposed rule was also made available through the internet by USDA and the Office of the Federal Register. A 30-day comment period ending May 20, 2024, was provided to allow interested persons to respond to the proposal. No comments were received during the comment period. Accordingly, AMS made no changes to the rule as proposed. A small business guide on complying with fruit, vegetable, and specialty crop marketing agreements and orders may be viewed at: *https://www.ams.usda.gov/rules-regulations/moa/small-businesses.* Any questions about the compliance guide should be sent to Richard Lower at the previously mentioned address in the FOR FURTHER INFORMATION CONTACT section. After consideration of all relevant material presented, including the information and recommendations submitted by the Board and other available information, USDA has determined that this rule is consistent with and will effectuate the policy of the Act. List of Subjects in 7 CFR Part 930 Cherries, Marketing agreements, Reporting and recordkeeping requirements. For the reasons set forth in the preamble, the Agriculture Marketing Service amends 7 CFR part 930 as follows: PART 930—TART CHERRIES GROWN IN THE STATES OF MICHIGAN, NEW YORK, PENNSYLVANIA, OREGON, UTAH, WASHINGTON, AND WISCONSIN 1. The authority citation for part 930 continues to read as follows: Authority: 7 U.S.C. 601-674. 2. Revise § 930.256 to read as follows: § 930.256 Free and restricted percentages for the 2023-24 crop year. The percentages for tart cherries handled by handlers during the crop year beginning on July 1, 2023, which shall be free and restricted, respectively, are designated as follows: Free percentage, 94 percent and restricted percentage, 6 percent. Erin Morris, Associate Administrator, Agricultural Marketing Service. [FR Doc. 2024-17902 Filed 8-9-24; 8:45 am]
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- 7 CFR 930
- 7 CFR 900.2(j)
- 7 USC 601-674
- 5 USC 601-612
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