2022 Rate Changes for the Basetime, Overtime, Holiday, Laboratory Services, and Export Application Fees

CourtAgriculture Department,Food Safety And Inspection Service
Citation86 FR 74063
Record Number2021-28300
Publication Date29 December 2021
Federal Register, Volume 86 Issue 247 (Wednesday, December 29, 2021)
[Federal Register Volume 86, Number 247 (Wednesday, December 29, 2021)]
                [Notices]
                [Pages 74063-74065]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2021-28300]
                ========================================================================
                Notices
                 Federal Register
                ________________________________________________________________________
                This section of the FEDERAL REGISTER contains documents other than rules
                or proposed rules that are applicable to the public. Notices of hearings
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                Federal Register / Vol. 86, No. 247 / Wednesday, December 29, 2021 /
                Notices
                [[Page 74063]]
                DEPARTMENT OF AGRICULTURE
                Food Safety and Inspection Service
                [Docket Number FSIS-2021-0029]
                2022 Rate Changes for the Basetime, Overtime, Holiday, Laboratory
                Services, and Export Application Fees
                AGENCY: Food Safety and Inspection Service, USDA.
                ACTION: Notice.
                -----------------------------------------------------------------------
                SUMMMARY: The Food Safety and Inspection Service (FSIS) is announcing
                the 2022 rates it will charge meat and poultry establishments, egg
                products plants, and importers and exporters for providing voluntary,
                overtime, and holiday inspection and identification, certification, and
                laboratory services. Additionally, FSIS is announcing that there will
                be no changes to the fee FSIS assesses to exporters that choose to
                apply for export certificates electronically through the export
                component of the Agency's Public Health Information System.
                 The new rates will be applied on January 2, 2022.
                DATES: FSIS will charge the rates announced in this notice beginning
                January 2, 2022.
                FOR FURTHER INFORMATION CONTACT: For further information contact
                Michael Toner, Director, Budget Division, Office of the Chief Financial
                Officer, FSIS, U.S. Department of Agriculture, Room 2159, South
                Building, 1400 Independence Avenue SW, Washington, DC 20250-3700;
                Telephone: (202) 690-8398, Fax: (202) 690-4155.
                SUPPLEMENTARY INFORMATION:
                Background
                 On April 12, 2011, FSIS published a final rule amending its
                regulations to establish formulas for calculating the rates it charges
                meat and poultry establishments, egg products plants, and importers and
                exporters for providing voluntary, overtime, and holiday inspection and
                identification, certification, and laboratory services (76 FR 20220).
                 In the final rule, FSIS stated that it would use the formulas to
                calculate the annual rates, publish the rates in Federal Register
                notices prior to the start of each calendar year, and apply the rates
                on the first FSIS pay period at the beginning of the calendar year.
                This notice provides the 2022 rates, which will be applied starting on
                January 2, 2022.
                 On September 6, 2017, FSIS published a Federal Register notice,
                ``Public Health Information System (PHIS) Export Component Country
                Implementation'' (FR 82 42056). The notice announced the delayed
                implementation of the export component to ensure sufficient testing and
                outreach to stakeholders and that the application fee would be
                recalculated based on available costs and number of applications, but
                would not be assessed prior to January 1, 2019. In addition, FSIS
                announced that it would implement the PHIS Export Component with a
                limited number of countries and gradually expand implementation to
                additional countries.
                 On April 29, 2019, FSIS published a Federal Register notice,
                ``Public Health Information System Export Component Fee'' (84 FR
                17999). The notice announced that starting June 1, 2019, FSIS would
                assess a fee of $4.01 to exporters that chose to apply for export
                certificates electronically through the export component of PHIS. As
                noted below, that fee remains unchanged since 2019.
                 On July 15, 2021, FSIS published a Federal Register notice,
                ``Overtime and Holiday Inspection Fee Reductions for Small and Very
                Small Establishments'' (86 FR 37276). The noticed explained that the
                American Rescue Plan Act provided FSIS with $100 million in budget
                authority to reduce the costs of overtime inspection for small and very
                small official meat and poultry establishments and egg products plants.
                The notice also announced that FSIS implemented this provision by
                reducing overtime and holiday inspection fees for small establishments
                by 30 percent and very small establishments by 75 percent. More
                information on how to apply for the fee reduction is available at:
                https://www.fsis.usda.gov/policy/federal-register-rulemaking/federal-register-notices/overtime-and-holiday-inspection-fee.
                2022 Rates and Calculations
                 The following table lists the 2022 Rates per hour, per employee, by
                type of service:
                ------------------------------------------------------------------------
                 2022 Rate
                 (estimates
                 rounded to
                 Service reflect
                 billable
                 quarters)
                ------------------------------------------------------------------------
                Basetime................................................ $67.00
                Overtime................................................ 2.60
                Holiday................................................. 98.20
                Laboratory.............................................. 85.72
                Export Application...................................... * 4.01
                ------------------------------------------------------------------------
                * Per application.
                 The regulations that cover these fees (other than the export
                application fee) state that FSIS will calculate the rates using
                formulas that include the Office of Field Operations (OFO) inspection
                program personnel's previous fiscal year's regular direct pay and
                regular hours (9 CFR 391.2, 391.3, 391.4, 590.126, 590.128, 592.510,
                592.520, and 592.530).
                 FSIS determined the 2022 rates using the following calculations:
                 Basetime Rate = The quotient of dividing the Office of Field
                Operations (OFO) inspection program personnel's previous fiscal year's
                regular direct pay by the previous fiscal year's regular hours, plus
                the quotient multiplied by the calendar year's percentage of cost of
                living increase, plus the benefits rate, plus the travel and operating
                rate, plus the overhead rate, plus the allowance for bad debt rate.
                 The calculation for the 2022 basetime rate per hour per program
                employee is:
                [FY 2021 OFO Regular Direct Pay divided by the previous fiscal year's
                Regular Hours ($456,808,446/15,032,156)] = $30.39 + ($30.39 * 2.7%
                (calendar year 2021 Cost of Living Increase)) = $31.21 + $11.86
                (benefits rate) + $2.48 (travel and operating rate) + $21.45(overhead
                rate) + $0.00 (bad debt allowance rate) = $67.00, which is divisible by
                4.
                 Overtime Rate = The quotient of dividing the Office of Field
                Operations (OFO) inspection program personnel's previous fiscal year's
                regular direct pay by the previous fiscal year's regular
                [[Page 74064]]
                hours, plus that quotient multiplied by the calendar year's percentage
                of cost of living increase, multiplied by 1.5 (for overtime), plus the
                benefits rate, plus the travel and operating rate, plus the overhead
                rate, plus the allowance for bad debt rate.
                 The calculation for the 2022 overtime rate per hour per program
                employee is:
                [FY 2021 OFO Regular Direct Pay divided by previous fiscal year's
                Regular Hours ($456,808,446/15,032,156)] = $30.39 + ($30.39 * 2.7%
                (calendar year 2021 Cost of Living Increase)) = $31.21 * 1.5 = $46.82 +
                $11.86 (benefits rate) + $2.48 (travel and operating rate) + $21.45
                (overhead rate) + $0.00 (bad debt allowance rate) = $82.61, rounded
                down to $82.60, so that it is divisible by 4.
                 Holiday Rate = The quotient of dividing the Office of Field
                Operations (OFO) inspection program personnel's previous fiscal year's
                regular direct pay by the previous fiscal year's regular hours, plus
                that quotient multiplied by the calendar year's percentage of cost of
                living increase, multiplied by 2 (for holiday pay), plus the benefits
                rate, plus the travel and operating rate, plus the overhead rate, plus
                the allowance for bad debt rate.
                 The calculation for the 2022 holiday rate per hour per program
                employee calculation is:
                [FY 2021 OFO Regular Direct Pay divided by Regular Hours ($456,808,446/
                15,032,156)] = $30.39 + ($30.39 * 2.7% (calendar year 2021 Cost of
                Living Increase)) = $31.21* 2 = $62.42 + $11.86 (benefits rate) + $2.48
                (travel and operating rate) + $21.45 (overhead rate) + $0.00 (bad debt
                allowance rate) = $98.21, rounded down to 98.20, so that it is
                divisible by 4.
                 Laboratory Services Rate = The quotient of dividing the Office of
                Public Health Science (OPHS) previous fiscal year's regular direct pay
                by the OPHS previous fiscal year's regular hours, plus the quotient
                multiplied by the calendar year's percentage cost of living increase,
                plus the benefits rate, plus the travel and operating rate, plus the
                overhead rate, plus the allowance for bad debt rate.
                 The calculation for the 2022 laboratory services rate per hour per
                program employee is:
                [FY 2021 OPHS Regular Direct Pay/OPHS Regular hours ($25,641,975/
                527,590)] = $48.60 + ($48.60 * 2.7% (calendar year 2021 Cost of Living
                Increase)) = $49.91 + $11.86 (benefits rate) + $2.48 (travel and
                operating rate) + $21.45 (overhead rate) + $0.00 (bad debt allowance
                rate) = $85.71, rounded up to 85.72, so that it is divisible by 4.
                Calculations for the Benefits, Travel and Operating, Overhead, and
                Allowance for Bad Debt Rates
                 These rates are components of the basetime, overtime, holiday, and
                laboratory services rates formulas.
                 Benefits Rate: The quotient of dividing the previous fiscal year's
                direct benefits costs by the previous fiscal year's total hours
                (regular, overtime, and holiday), plus that quotient multiplied by the
                calendar year's percentage cost of living increase. Some examples of
                direct benefits are health insurance, retirement, life insurance, and
                Thrift Savings Plan basic and matching contributions.
                 The calculation for the 2022 benefits rate per hour per program
                employee is:
                [FY 2021 Direct Benefits/(Total Regular hours + Total Overtime hours +
                Total Holiday hours) ($214,717,112/18,590,355)] = $11.55 + ($11.55 *
                2.7% (calendar year 2021 Cost of Living Increase)) = $11.86.
                 Travel and Operating Rate: The quotient of dividing the previous
                fiscal year's total direct travel and operating costs by the previous
                fiscal year's total hours (regular, overtime, and holiday), plus that
                quotient multiplied by the calendar year's percentage of inflation.
                 The calculation for the 2022 travel and operating rate per hour per
                program employee is:
                [FY 2021 Total Direct Travel and Operating Costs/(Total Regular hours +
                Total Overtime hours + Total Holiday hours) ($45,098,829/18,590,355)] =
                $2.43 + ($2.43 * 2.1% (2022 Inflation) = $2.48.
                 Overhead Rate: The quotient of dividing the previous fiscal year's
                indirect costs plus the previous fiscal year's information technology
                (IT) costs in the Public Health Data Communication Infrastructure
                System Fund plus the provision for the operating balance less any
                Greenbook costs (i.e., costs of USDA support services prorated to the
                service component for which fees are charged) that are not related to
                food inspection by the previous fiscal year's total hours (regular,
                overtime, and holiday) worked across all funds, plus the quotient
                multiplied by the calendar year's percentage of inflation.
                 The calculation for the 2022 overhead rate per hour per program
                employee is:
                [FY 2021 Total Overhead/(Total Regular hours + Total Overtime hours +
                Total Holiday hours) ($ 390,615,397/18,590,355)] = $21.01 + ($21.01 *
                2.1% (2021 Inflation) = $21.45.
                 Allowance for Bad Debt Rate = Previous fiscal year's total
                allowance for bad debt (for example, debt owed that is not paid in full
                by plants and establishments that declare bankruptcy) divided by
                previous fiscal year's total hours (regular, overtime, and holiday)
                worked.
                 The 2022 calculation for bad debt rate per hour per program
                employee is:
                [FY 2021 Total Bad Debt/(Total Regular hours + Total Overtime hours +
                Total Holiday hours) = ($249,286/18,590,355)] = $0.01.
                2022 Electronic Export Application Fee
                 The 2022 Electronic Export Application Fee:
                 [GRAPHIC] [TIFF OMITTED] TN29DE21.006
                
                 As published in the 2016 final rule, the Electronic Export
                Application Fee Formula is:
                [[Page 74065]]
                [GRAPHIC] [TIFF OMITTED] TN29DE21.007
                 FSIS stated in the 2016 final rule (81 FR 42225) and the 2017
                Federal Register notice (FR 82 42056) that it would update and
                recalculate the fee based on the best available estimates for costs and
                number of applications; however, the number of export applications (the
                denominator in the formula) cannot be accurately assessed until a
                majority of countries are included in the export component. Therefore,
                because a majority of countries are not yet included in the PHIS Export
                component, the cost estimates and projected export applications in the
                final rule remain the best estimate for 2022, leaving the electronic
                export application fee unchanged.
                Additional Public Notification
                 Public awareness of all segments of rulemaking and policy
                development is important. Consequently, FSIS will announce this Federal
                Register publication on-line through the FSIS website located at:
                https://www.fsis.usda.gov/policy/federal-register-rulemaking/federal-register-rules. FSIS will also announce and provide a link to this
                Federal Register publication through the FSIS Constituent Update, which
                is used to provide information regarding FSIS policies, procedures,
                regulations, Federal Register notices, FSIS public meetings, and other
                types of information that could affect or would be of interest to our
                constituents and stakeholders. The Constituent Update is available on
                the FSIS website. Through the website, FSIS can provide information to
                a much broader, more diverse audience. In addition, FSIS offers an
                email subscription service which provides automatic and customized
                access to selected food safety news and information. This service is
                available at: https://www.fsis.usda.gov/subscribe. Options range from
                recalls to export information, regulations, directives, and notices.
                Customers can add or delete subscriptions themselves and have the
                option to password protect their accounts.
                USDA Non-Discrimination Statement
                 In accordance with Federal civil rights law and USDA civil rights
                regulations and policies, the USDA, its Agencies, offices, and
                employees, and institutions participating in or administering USDA
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                rights activity, in any program or activity conducted or funded by USDA
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                deadlines vary by program or incident.
                 Persons with disabilities who require alternative means of
                communication for program information (e.g., Braille, large print,
                audiotape, American Sign Language, etc.) should contact the responsible
                Agency or USDA's TARGET Center at (202) 720-2600 (voice and TTY) or
                contact USDA through the Federal Relay Service at (800) 877-8339.
                Additionally, program information may be made available in languages
                other than English.
                 To file a program discrimination complaint, complete the USDA
                Program Discrimination Complaint Form, AD-3027, found online at How to
                File a Program Discrimination Complaint and at any USDA office or write
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                by: (1) Mail: USDA, Office of the Assistant Secretary for Civil Rights,
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                Paul Kiecker,
                Administrator.
                [FR Doc. 2021-28300 Filed 12-28-21; 8:45 am]
                BILLING CODE 3410-DM-P
                

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