Reorganization and Transfer of Regulations

Published date01 October 2021
Citation86 FR 54339
Record Number2021-20380
SectionRules and Regulations
CourtCommodity Credit Corporation
Federal Register, Volume 86 Issue 188 (Friday, October 1, 2021)
[Federal Register Volume 86, Number 188 (Friday, October 1, 2021)]
                [Rules and Regulations]
                [Pages 54339-54340]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2021-20380]
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                Rules and Regulations
                 Federal Register
                ________________________________________________________________________
                This section of the FEDERAL REGISTER contains regulatory documents
                having general applicability and legal effect, most of which are keyed
                to and codified in the Code of Federal Regulations, which is published
                under 50 titles pursuant to 44 U.S.C. 1510.
                The Code of Federal Regulations is sold by the Superintendent of Documents.
                ========================================================================
                Federal Register / Vol. 86, No. 188 / Friday, October 1, 2021 / Rules
                and Regulations
                [[Page 54339]]
                DEPARTMENT OF AGRICULTURE
                Agricultural Marketing Service
                7 CFR Part 870
                Commodity Credit Corporation
                7 CFR Part 1427
                [Doc. No. AMS-LRRS-21-0047]
                Reorganization and Transfer of Regulations
                AGENCY: Agricultural Marketing Service; Commodity Credit Corporation,
                USDA.
                ACTION: Final rule.
                -----------------------------------------------------------------------
                SUMMARY: This rule transfers regulations pertaining to the Economic
                Adjustment Assistance for Textile Manufacturers program from the
                Commodity Credit Corporation (CCC) to the Agricultural Marketing
                Service (AMS) to reflect changes in the organizational structure and
                delegated authorities within the United States Department of
                Agriculture (USDA). This action is necessary to enable the AMS
                Administrator to issue, maintain, and revise as necessary regulations
                related to programs under the AMS Administrator's delegated authority.
                DATES: Effective October 1, 2021.
                FOR FURTHER INFORMATION CONTACT: Laurel May, Regulatory Analyst,
                Legislative and Regulatory Review Staff, Office of the Administrator,
                AMS, USDA; Telephone: (202) 384-2975, or Email: [email protected].
                SUPPLEMENTARY INFORMATION: Congress directed the Secretary of
                Agriculture (Secretary) to provide economic adjustment assistance to
                domestic users of upland cotton under the Economic Adjustment
                Assistance to Users of Upland Cotton program in section 1207(c) of the
                Food, Conservation, and Energy Act of 2008 (Pub. L. 110-234; May 22,
                2008). Under the program domestic users of upland cotton may qualify
                for financial assistance that can be used to acquire, construct,
                install, modernize, develop, convert, or expand land, plant, buildings,
                equipment, facilities, or machinery. Payments for such assistance are
                issued by CCC. Section 1203(b) of the Agriculture Improvement Act of
                2018 (Pub. L. 115-334; December 20, 2018) renamed the program
                ``Economic Assistance Adjustment to Textile Mills'' (EAATM).
                Regulations implementing the EAATM are found at 7 CFR part 1427, in
                subpart C, in Sec. Sec. 1427.100 to 1427.105.
                 In a memorandum dated July 1, 2019,\1\ the Secretary redelegated
                authority to administer EAATM from the Farm Service Agency to the
                Agricultural Marketing Service (AMS). A final rule published October
                15, 2020 (85 FR 65500), amended 7 CFR part 2 to reflect the
                redelegation. Amended Sec. 2.79(a)(23) authorizes the AMS
                Administrator to administer the EAATM program (7 U.S.C. 9037(c)). The
                redelegation of authority necessitates the transfer of corresponding
                regulations to AMS, giving the AMS Administrator authority to issue,
                maintain, and revise the regulations pertaining to EAATM. This final
                rule completes the necessary transfer.
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                 \1\ Secretary's Memorandum 1076-030 (July 1, 2019), available at
                https://www.ocio.usda.gov/document/secretarys-memorandum-1076-030.
                ---------------------------------------------------------------------------
                Overview of Changes
                 Currently, Title 7, Chapter XIV, part 1427 of the Code of Federal
                Regulations (CFR) contains the EAATM regulations (in Sec. Sec.
                1427.100 to 1427.105), under CCC administration. This final rule
                removes the EAATM regulations from 7 CFR part 1427 and adds them in a
                new part 870--Economic Adjustment Assistance to Textile Mills--to 7 CFR
                chapter VIII, Subchapter B. Currently Subchapter B is titled
                ``Regulations for Warehouses'' and contains part 869--Regulations for
                the United States Warehouse Act (USWA). This final rule revises the
                title for Subchapter B to read ``Fair Trade Practices'' to reflect the
                delegation of administrative authority for both USWA and EAATM
                activities to the AMS Administrator. The Deputy Administrator of AMS's
                Fair Trade Practices Program (FTPP) oversees USWA and EAATM activities
                for the Administrator. Finally, this rule makes a conforming change to
                the text of the EAATM regulations to reflect the program's revised
                name.
                Classification
                 This final rule is administrative in nature and reflects changes in
                USDA's organization. Accordingly, pursuant to 5 U.S.C. 553, notice of
                proposed rulemaking and opportunity for comment are not required, and
                this rule may be made effective in fewer than 30 days after publication
                in the Federal Register. Therefore, this final rule is effective upon
                publication.
                 Additionally, this rule is exempt from the provisions of Executive
                Order 12866, as it is limited to agency management. This action is not
                a rule as defined by the Regulatory Flexibility Act, as amended by the
                Small Business Regulatory Enforcement Fairness Act of 1996, 5 U.S.C.
                801 et seq., and thus is exempt from the provisions of those Acts. This
                rule contains no information collection or recordkeeping requirements
                under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.).
                 The Congressional Review Act (5 U.S.C. 801 et seq.) provides
                exemptions for rules ``of particular applicability;'' ``relating to
                agency management or personnel;'' or ``of agency organization,
                procedure, or practice that does not substantially affect the rights or
                obligations of non-agency parties.'' This action qualifies for this
                exemption.
                 AMS is committed to complying with the E-Government Act to promote
                the use of the internet and other information technologies, to provide
                increased opportunities for citizen access to Government information
                and services, and for other purposes.
                 USDA has not identified any relevant Federal rules that duplicate,
                overlap, or conflict with this final rule.
                List of Subjects
                7 CFR Part 870
                 Cotton, Payments, Reporting and recordkeeping, Textile mills.
                7 CFR Part 1427
                 Cotton, Cottonseeds, Loan programs-agriculture, Packaging and
                containers, Price support programs, Reporting and recordkeeping
                requirements, Surety bonds, Warehouses.
                 For the reasons stated in the preamble, as authorized by the
                Secretary's Memorandum implementing the Agriculture Improvement Act of
                2018, dated July 1, 2019, the
                [[Page 54340]]
                Department of Agriculture amends 7 CFR chapters VIII and XIV as
                follows:
                TITLE 7--AGRICULTURE
                CHAPTER VIII--AGRICULTURAL MARKETING SERVICE (FEDERAL GRAIN
                INSPECTION SERVICE, FAIR TRADE PRACTICES PROGRAM), DEPARTMENT OF
                AGRICULTURE
                Subchapter B--Fair Trade Practices
                0
                1. Under the authority of 7 CFR 2.22(a)(1), revise the heading of
                subchapter B to read as set forth above.
                0
                2. Add part 870 to read as follows:
                PART 870--ECONOMIC ASSISTANCE ADJUSTMENT FOR TEXTILE MILLS
                Sec.
                870.1 Applicability.
                870.3 Eligible upland cotton.
                870.5 Eligible domestic users.
                870.7 Upland cotton Domestic User Agreement.
                870.9 Payment.
                 Authority: 7 U.S.C. 9037(c).
                Sec. 870.1 Applicability.
                 (a) These regulations specify the terms and conditions under which
                the Commodity Credit Corporation (CCC) will make payments to eligible
                domestic users who have entered into an Upland Cotton Domestic User
                Agreement with CCC to participate in the upland cotton domestic user
                program.
                 (b) CCC will specify the forms to be used in administering the
                Economic Adjustment Assistance for Textile Mills program.
                Sec. 870.3 Eligible upland cotton.
                 (a) For purposes of this subpart, eligible upland cotton is baled
                upland cotton, regardless of origin, that is opened by an eligible
                domestic user, and is either:
                 (1) Baled lint, including baled lint classified by USDA's
                Agricultural Marketing Service as Below Grade;
                 (2) Loose samples removed from upland cotton bales for
                classification purposes that have been rebaled;
                 (3) Semi-processed motes that are of a quality suitable, without
                further processing, for spinning, papermaking, or production of non-
                woven fabric; or
                 (4) Re-ginned (processed) motes.
                 (b) Eligible upland cotton must not be:
                 (1) Cotton for which a payment, under the provisions of this
                subpart, has been made available;
                 (2) Raw (unprocessed) motes, pills, linters, or other derivatives
                of the lint cleaning process; or
                 (3) Textile mill wastes.
                Sec. 870.5 Eligible domestic users.
                 (a) For purposes of this subpart, a person regularly engaged in the
                business of opening bales of eligible upland cotton for the purpose of
                spinning, papermaking, or processing of non-woven cotton fabric in the
                United States, who has entered into an agreement with CCC to
                participate in the upland cotton user program, will be considered an
                eligible domestic user.
                 (b) Applications for payment under this subpart must contain
                documentation required by the provisions of the Upland Cotton Domestic
                User Agreement and other instructions that CCC issues.
                Sec. 870.7 Upland cotton Domestic User Agreement.
                 (a) Payments specified in this subpart will be made available to
                eligible domestic users who have entered into an Upland Cotton Domestic
                User Agreement with CCC and who have complied with the terms and
                conditions in this subpart, the Upland Cotton Domestic User Agreement,
                and instructions issued by CCC.
                 (b) Upland Cotton Domestic User Agreements may be obtained from the
                Warehouse and Commodity Management Division, P.O. Box 419205, Stop
                9148, Kansas City, MO 64141-6205. In order to participate in the
                program authorized by this subpart, domestic users must execute the
                Upland Cotton Domestic User Agreement and forward the original and one
                copy to KCCO.
                Sec. 870.9 Payment.
                 (a) The payment rate for purposes of calculating payments as
                specified in this subpart is 3 cents per pound.
                 (b) Payments specified in this subpart will be determined by
                multiplying the payment rate, of 3 cents per pound, by
                 (1) In the case of baled upland cotton, whether lint, loose samples
                or reginned motes, but not semi-processed motes, the net weight of the
                cotton used (gross weight minus the weight of bagging and ties);
                 (2) In the case of unbaled reginned motes consumed, without
                rebaling, for an end use in a continuous manufacturing process, the
                weight of the reginned motes after final cleaning; and
                 (3) In the case of semi-processed motes which are of a quality
                suitable, without further processing, for spinning, papermaking, or
                manufacture of non-woven cotton fabric, 25 percent of the weight (gross
                weight minus the weight of bagging and ties, if baled) of the semi-
                processed motes; provided further, that with respect to semi-processed
                motes that are used prior to August 18, 2010, payment may be allowed by
                CCC in its sole discretion at 100 percent of the weight as determined
                appropriate for a transition of the program to the 25 percent factor.
                 (c) In all cases, the payment will be determined based on the
                amount of eligible upland cotton that an eligible domestic user
                consumed during the immediately preceding calendar month. For the
                purposes of this subpart, eligible upland cotton will be considered
                consumed by the domestic user on the date the bale is opened for
                consumption, or if not baled, the date consumed, without further
                processing, in a continuous manufacturing process.
                 (d) Payments specified in this subpart will be made available upon
                application for payment and submission of supporting documentation, as
                required by the CCC-issued provisions of the Upland Cotton Domestic
                User Agreement.
                 (e) All payments received by the eligible domestic user of upland
                cotton must be used for purposes specified in 7 U.S.C. 9037(c)(3),
                which include but are not limited to, acquisition, construction,
                installation, modernization, development, conversion, or expansion of
                land, plant, buildings, equipment, facilities, or machinery. Such
                capital expenditures must be directly attributable and certified as
                such by the user for the purpose of manufacturing upland cotton into
                eligible cotton products in the United States.
                CHAPTER XIV--COMMODITY CREDIT CORPORATION, DEPARTMENT OF
                AGRICULTURE
                PART 1427--COTTON
                0
                3. The authority citation for part 1427 continues to read as follows:
                 Authority: 7 U.S.C. 7231-7237, 7931-7936, 9011, and 9031-40, 15
                U.S.C. 714b and c.
                Subpart C--[Removed and Reserved]
                0
                4. Remove and reserve subpart C, consisting of Sec. Sec. 1427.100
                through 1427.105.
                Mae Wu,
                Deputy Under Secretary, Marketing and Regulatory Programs.
                [FR Doc. 2021-20380 Filed 9-30-21; 8:45 am]
                BILLING CODE 3410-05-P
                

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