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Federal Register / Vol. 72, No.

88 / Tuesday, May 8, 2007 / Proposed Rules 26005

source milk allocated to Class I pursuant marketing areas, or from the Hearing and Promotion Act (Act). The National
to § 1000.44(a)(3) and (8) and the Clerk, United States Department of Watermelon Promotion Board (Board),
corresponding steps of § 1000.44(b), Agriculture, Room 1083—STOP 9200, which administers the Plan,
except other source milk that is 1400 Independence Avenue, SW., recommended this action to sustain and
excluded from the computations Washington, DC 20250–9200, or may be expand their promotional, research, and
pursuant to § 1007.60 (h) and (i); and inspected there. communications programs.
(d) Route disposition in the marketing Copies of the transcript of testimony DATES: Comments must be received by
area from a partially regulated taken at the hearing will not be available July 9, 2007.
distributing plant that exceeds the skim for distribution through the Hearing ADDRESSES: Interested persons are
milk and butterfat subtracted pursuant Clerk’s Office. If you wish to purchase invited to submit written comments on
to 1000.76 (a) (1) (i) and (ii) a copy, arrangements may be made with the internet at: http://
the reporter at the hearing. www.regulations.gov or to the Research
Proposed by the Florida Market
From the time that a hearing notice is and Promotion Branch, Fruit and
Administrator
issued and until the issuance of a final Vegetable Programs, Agricultural
Proposal No. 6 decision in a proceeding, Department Marketing Service (AMS), U.S.
This proposal seeks to increase the employees involved in the decision- Department of Agriculture, Room 0634–
maximum administrative assessment making process are prohibited from S, Stop 0244, 1400 Independence
from the current 5 cents per cwt to a discussing the merits of the hearing Avenue, SW., Washington, DC 20250–
maximum of 8 cents per cwt for the issues on an ex parte basis with any 0244; fax: (202) 205–2800. All
Florida milk marketing order. person having an interest in the comments should reference the docket
Revise § 1006.85 to read as follows: proceeding. For this particular number and the date and page number
proceeding, the prohibition applies to of this issue of the Federal Register and
§ 1006.85 Assessment for order employees in the following will be made available for public
administration. organizational units: inspection in the above office during
On or before the payment receipt date Office of the Secretary of Agriculture regular business hours or can be viewed
specified under § 1006.71, each handler Office of the Administrator, Agricultural at http://www.regulations.gov.
shall pay to the market administrator its Marketing Service FOR FURTHER INFORMATION CONTACT:
pro rata share of the expense of Office of the General Counsel Jeanette Palmer, Marketing Specialist,
administration of the order at a rate Dairy Programs, Agricultural Marketing Research and Promotion Branch, Fruit
specified by the market administrator Service (Washington office) and the and Vegetable Programs, AMS, USDA,
that is no more than 8 cents per Offices of all Market Administrators. 1400 Independence Avenue, SW., Room
hundredweight with respect to: Procedural matters are not subject to 0634, Stop 0244, Washington, DC
(a) Receipts of producer milk the above prohibition and may be 20250–0244; telephone: (202) 720–9915;
(including the handler’s own discussed at any time. or fax: (202) 205–2800; or e-mail:
production) other than such receipts by Jeanette.Palmer@usda.gov.
a handler described in § 1000.9 (c) that Dated: May 3, 2007.
were delivered to pool plants of other Lloyd C. Day, SUPPLEMENTARY INFORMATION: This rule
handlers; Administrator, Agricultural Marketing is issued under the Watermelon
(b) Receipts from a handler described Service. Research and Promotion Plan [7 CFR
in § 1000.9 (c); [FR Doc. E7–8802 Filed 5–7–07; 8:45 am] part 1210]. The Plan is authorized under
(c) Receipts of concentrated fluid milk BILLING CODE 3410–02–P the Watermelon Research and
products from unregulated supply Promotion Act [7 U.S.C. 4901–4916].
plants and receipts of nonfluid milk Executive Order 12866
products assigned to Class I use DEPARTMENT OF AGRICULTURE
pursuant to § 1000.43 (d) and other The Office of Management and Budget
source milk allocated to Class I pursuant Agricultural Marketing Service (OMB) has waived the review process
to § 1000.44 (a) (3) and (8) and the required by Executive Order 12866 for
corresponding steps of § 1000.44 (b), 7 CFR Part 1210 this action.
except other source milk that is [Doc. No. AMS–FV–07–0038; FV–07–701] Executive Order 12988
excluded from the computations This rule has been reviewed under
pursuant to § 1006.60 (h) and (i); and Watermelon Research and Promotion
Executive Order 12988, Civil Justice
(d) Route disposition in the marketing Plan; Assessment Increase
Reform. The rule is not intended to have
area from a partially regulated retroactive effect and will not affect or
AGENCY: Agricultural Marketing Service,
distributing plant that exceeds the skim preempt any other State or Federal law
USDA.
milk and butterfat subtracted pursuant authorizing promotion or research
to 1000.76 (a) (1) (i) and (ii) ACTION: Proposed rule.
relating to an agricultural commodity.
Proposal by Dairy Programs, SUMMARY: This rule proposes to amend The Act allows producers, handlers,
Agricultural Marketing Service the Watermelon Research and and importers subject to the Plan to file
Promotion Plan (Plan) to increase the a written petition with the Secretary of
Proposal No. 7 assessment rate on producers, handlers, Agriculture (Secretary) if they believe
Make such changes as may be and importers of watermelons from four that the Plan, any provision of the Plan,
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necessary to make the entire marketing cents to six cents per hundredweight. or any obligation imposed in connection
agreement and the order conform with Domestic producers and handlers would with the Plan, is not in accordance with
any amendments thereto that may result pay three cents per hundredweight each the law. In any petition, the person may
from this hearing. and importers would pay six cents per request a modification of the Plan or an
Copies of this notice of hearing and hundredweight. The increase is exemption from the Plan. The petitioner
the orders may be procured from the provided for under the Plan which is will have the opportunity for a hearing
Market Administrator of the aforesaid authorized by the Watermelon Research on the petition. Afterwards, an

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26006 Federal Register / Vol. 72, No. 88 / Tuesday, May 8, 2007 / Proposed Rules

Administrative Law Judge (ALJ) will imported watermelons became effective 2005–2006 crop year, in which
issue a decision. If the petitioner when the Plan was amended in collections totaled $1,583,983 on
disagrees with the ALJ’s ruling, the February 1995 to authorize the 3,959,957,500 pounds of watermelons,
petitioner has 30 days to appeal to the collection of assessments on importers. the increase in assessments collected
Judicial Officer, who will issue a ruling The Plan is administered by the Board would have been approximately
on behalf of the Secretary. If the under U.S. Department of Agriculture $791,991. The Board plans to use the
petitioner disagrees with the Secretary’s supervision. additional funds to expand promotional
ruling, the petitioner may file, within 20 According to the Board, additional activities, and to increase the Board’s
days, an appeal in the U.S. District revenue is required in order to sustain reserve fund over a two-year period to
Court for the district where the and expand the promotional, research, provide for adequate cash flow. By
petitioner resides or conducts business. and communications programs. The changing the assessment rate to six
Board approved the proposed cents per hundredweight, the Board
Initial Regulatory Flexibility Act and assessment rate increase at its February stated that it would maintain its
Paperwork Reduction Act 24, 2007, meeting. This proposed research and promotional activities,
In accordance with the Regulatory increase is consistent with section expand its programs, and sustain
Flexibility Act (RFA) [5 U.S.C. 601 et 1647(f) of the Act that permits changes marketing activities in the future with
seq.], the Agricultural Marketing Service in the assessment rate through notice rising cost expenditures.
(AMS) has considered the economic and comment procedures. Section The Board estimates the two cents per
impact of this action on the small 1210.341(b) of the Plan states that hundredweight increase in assessments
producers, handlers, and importers that assessment rates shall be fixed by the would increase the cost to watermelon
would be affected by this rule. The Secretary in accordance with section producers from $16.00 per truckload of
purpose of the RFA is to fit regulatory 1647(f) of the Act. Section 1210.515(a) watermelons to $24.00 per truckload of
action to scale on businesses subject to of the Plan states that an assessment of watermelons. At Freight on Board (FOB)
such action so that small businesses will two cents per hundredweight shall be prices of about $0.14 per pound of
not be disproportionately burdened. levied on all watermelons produced and watermelons, this amounts to a total
The Small Business Administration on all watermelons first handled for assessment of 0.00429 percent of the
defines, in 13 CFR part 121, small consumption as human food. It also value of a truck load of watermelons.
agricultural producers as those having states that an assessment of four cents This is based on a 40,000 pound net
annual receipts of no more than per hundredweight shall be levied on weight of watermelons per truck load.
$750,000 and small agricultural service watermelons imported into the U.S. for The Board considered three
firms (handlers and importers) as those consumption as human food. Further, alternatives prior to the
having annual receipts of no more than not more than one assessment on a recommendation to increase the
$6.5 million. Under these definitions, producer, handler, or importer may be assessment rate. First, the Board
the majority of the producers, handlers, collected on any lot of watermelons. performed several cost saving measures
and importers that would be affected by The Board conducted an inflation as an alternative to increasing the
this rule would be considered small analysis based on the current assessment rate which included moving
entities. Producers of less than 10 acres assessment rate of four cents per to less expensive offices, changes in the
of watermelons are exempt from this hundredweight starting from 1995. The staff health insurance program, change
program. Importers of less than 150,000 analysis results show that, adjusted for in independent auditors, and the
pounds of watermelons per year are also inflation, the 1995 four cents per elimination of one professional staff
exempt. hundredweight total assessment is position. The results of the savings were
According to the National equivalent to three cents per over $120,000 which equals
Watermelon Promotion Board (Board), hundredweight for the current program approximately 10 percent of the Board’s
there are approximately 1,301 year. On an inflation adjusted basis, domestic revenue for the 2005–2006
producers, 442 first handlers, and 346 using 1995 as the base year, the crop year.
importers who are subject to the watermelon industry’s program to The second alternative considered by
provisions of the Plan. support research and promotion the Board was a prior attempt to
Under the current Plan, domestic activities has lost 25 percent of its increase additional revenue by
producers of 10 acres or more and effective buying power. This erosion in expanding the handler base for
handlers of watermelon each pay a buying power has had a significant watermelons. A referendum was
mandatory assessment rate of two cents impact on the industry’s ability to conducted by AMS between December
per hundredweight, and importers of compete for market share. The cost of 2001 and January 2002. The proposed
more than 150,000 pounds of media services, research programs, amendment to the Plan requested the
watermelon per year pay an assessment promotional opportunities, as well as watermelon industry to expand the
of four cents per hundredweight. general administrative costs and fees program to cover all handlers of
Assessments under the program are paid to USDA have continually risen. watermelons which would have
used by the Board to finance promotion, Assessments collected have not kept included wholesalers, persons who
research, and educational programs pace with these increasing costs. arrange the sale or transfer of
designed to increase consumer demand Movement and sales of watermelon watermelon (such as brokers) and fresh
for watermelons in the United States continue to grow, however, that growth cut processors. The amendment was not
and international markets. The has not outpaced the negative effects of approved in referendum. Therefore, the
assessments at the current four cents per inflation. Plan continues to cover domestic
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hundredweight generate about $1.5 With the proposed increased producers of 10 acres or more, first
million in annual revenues. The two assessment, the financial commitment handlers, and importers of 150,000
cents per hundredweight assessment of the U.S. watermelon industry for pounds of watermelon annually.
rate each for domestic watermelon generic research and promotion activity The final alternative considered by
producer and handler was established would increase 50 percent in current the Board was the current assessment
in April 1990. The four cents per dollars. For example, if we apply the rate proposal. The Board discussed
hundredweight assessment rate on proposed assessment increase to the increasing the assessment rate by one

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Federal Register / Vol. 72, No. 88 / Tuesday, May 8, 2007 / Proposed Rules 26007

cent per hundredweight for each reporting their handling of watermelons, Board on the basis that such an increase
producer of 10 acres or more, handler, and maintaining records necessary to would only return the program to its
and importer of 150,000 pounds of verify their reporting(s). Importers are 1995 inflation adjusted funding level.
watermelon annually. The one cent responsible for payment of assessments According to the Board, the one cent per
proposed increase was rejected by the to the Board on watermelons imported hundredweight would not allow the
Board on the basis that an increase of into the United States through the U.S. program to expand its activities.
this size would only return the program Customs Service and Border Protection. This rule would amend the rules and
to the 1995 adjusted funding level. In This rule proposes to increase the regulations issued under the Plan. This
order to sustain and expand the assessment rate by one cent per rule would increase the assessment rate
promotional, research, and hundredweight for producers and by two cents per hundredweight. The
communication programs, the Board handlers each, and by two cents per rate would increase from four cents to
decided to propose an increase hundredweight for importers. Currently, six cents per hundredweight. Producers
assessment rate of two cents per the assessment rate is two cents per of 10 acres or more and handlers of
hundredweight for a total assessment hundredweight levied on watermelons watermelons will each pay three cents
rate of six cents per hundredweight produced and two cents per per hundredweight and importers of
(three cents per hundredweight paid by hundredweight on watermelons 150,000 pounds or more of watermelons
producers, three cents per handled within the 50 States of the annually will pay six cents per
hundredweight paid by handlers, and United States and four cents per hundredweight. This proposed increase
six cents per hundredweight paid by hundredweight on imports of is consistent with section 1647(f) of the
importers of watermelons). watermelon. In order to sustain and Act that permits changes in the
This rule does not impose additional expand the promotion, research, and assessment rate through notice and
recordkeeping requirements on first communications programs at present comment procedures. Section
handlers, producers, or importers of levels, the Board contends that 1210.341(b) of the Plan states that
watermelons. Producers of fewer than additional revenue is required. The assessment rates shall be fixed by the
10 acres of watermelon and importers of proposed two cents per hundredweight Secretary in accordance with section
less than 150,000 pounds of watermelon assessment rate increase is estimated to 1647(f) of the Act. Further, not more
annually are exempt. generate $750,000–$800,000 in new than one assessment on a producer,
There are no Federal rules that revenue, depending upon production handler, or importer may be collected
duplicate, overlap, or conflict with this levels. For the 2005–2006 crop year, on any lot of watermelons. The Board is
rule. total production was 3,959,957,500 recommending the proposed assessment
In accordance with the Office of pounds of watermelons resulting in rate increase based on continued
Management and Budget (OMB) $1,583,983 in assessment collections. inflation and rising cost expenditures
regulation 5 CFR part 1320] which Based on assessments collected for that since the current assessment rate places
implements the Paperwork Reduction crop year, about 75 percent of this budget constraints on promotional,
Act of 1995 [44 U.S.C. Chapter 35], the production total was from domestic research, and communications programs
information collection and assessments, with the remainder from and would result in reducing the
recordkeeping requirements that are imports. The Board states that the programs in the future. Accordingly,
imposed by the Plan have been proposed assessment rate increase, section 1210.515(a) of the Plan would be
approved previously under OMB would enable it to expand media revised.
control number 0581–0093. This rule services, educational programs, research A 60-day comment period is provided
does not result in a change to the programs, and establish, maintain, and to allow interested persons to respond
information collection and expand domestic and foreign markets to this proposal. All written comments
recordkeeping requirements previously for watermelons. Some of the additional received in response to this rule by the
approved. revenue, the Board states, would be date specified would be considered
We have performed this Initial used to increase the reserve fund over prior to finalizing this action.
Regulatory Flexibility Analysis a two-year period to provide for
regarding the impact of this proposed adequate cash flow. Also, it is estimated List of Subjects in 7 CFR Part 1210
amendment to the Plan on small that the Board will receive $2.3 million Administrative practice and
entities, and we invite comments in total assessments with a six cents per procedure, Advertising, Consumer
concerning potential effects of this hundredweight assessment rate on information, Marketing agreements,
amendment on small businesses. watermelons. Reporting and recordkeeping
In addition, the Board, whose requirements, Watermelon promotion.
Background
members represent all watermelon For the reasons set forth in the
Under the Plan, the Board administers producing states as well as importers, preamble, Part 1210, Chapter XI of Title
a nationally coordinated program of voted to propose the assessment rate 7 is proposed to be amended as follows:
research, development, advertising, and increase at its February 24, 2007,
promotion designed to strengthen the meeting which was open to the public PART 1210—WATERMELON
position of watermelons in the like all other meetings. The vote to RESEARCH AND PROMOTION PLAN
marketplace, and to establish, maintain, recommend the assessment increase was
and expand markets for watermelons. 22 in favor and 1 against of the Board 1. The authority citation for 7 CFR
This program is financed by members present at the meeting. In the part 1210 continues to read as follows:
assessments on producers growing 10 case of the one dissenting vote, the Authority: 7 U.S.C. 4901–4916.
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acres or more of watermelons, handlers producer member stated that he 2. Section 1210.515 (a) is revised to
of watermelons, and importers of opposed the two cents per read as follows:
150,000 or more pounds of watermelons hundredweight increase; however, he
per year. The Plan specifies that would support an increase of one cent § 1210.515 Levy of assessments.
handlers are responsible for collecting per hundredweight. The proposed (a) An assessment of three cents per
and submitting both the producer and assessment rate of one cent per hundredweight shall be levied on all
handler assessments to the Board, hundredweight was rejected by the watermelons produced for ultimate

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26008 Federal Register / Vol. 72, No. 88 / Tuesday, May 8, 2007 / Proposed Rules

consumption as human food, and an • DOT Docket Web site: Go to http:// Examining the Docket
assessment of three cents per dms.dot.gov and follow the instructions You may examine the AD docket on
hundredweight shall be levied on all for sending your comments the Internet at http://dms.dot.gov, or in
watermelons first handled for ultimate electronically. person at the Docket Management
consumption as human food. An • Government-wide rulemaking Web Facility office between 9 a.m. and 5
assessment of six cents per site: Go to http://www.regulations.gov p.m., Monday through Friday, except
hundredweight shall be levied on all and follow the instructions for sending Federal holidays. The Docket
watermelons imported into the United your comments electronically. Management Facility office (telephone
States for ultimate consumption as • Mail: Docket Management Facility; (800) 647–5227) is located on the plaza
human food at the time of entry in the U.S. Department of Transportation, 400 level of the Nassif Building at the DOT
United States. Seventh Street, SW., Nassif Building, street address stated in the ADDRESSES
* * * * * Room PL–401, Washington, DC 20590. section. Comments will be available in
Dated: May 2, 2007.
• Fax: (202) 493–2251. the AD docket shortly after the Docket
• Hand Delivery: Room PL–401 on
Lloyd C. Day, Management System receives them.
the plaza level of the Nassif Building,
Administrator, Agricultural Marketing Discussion
400 Seventh Street, SW., Washington,
Service.
DC, between 9 a.m. and 5 p.m., Monday On November 2, 2005, we issued AD
[FR Doc. E7–8726 Filed 5–7–07; 8:45 am]
through Friday, except Federal holidays. 2005–23–14, amendment 39–14372 (70
BILLING CODE 3410–02–P
Contact Empresa Brasileira de FR 69075, November 14, 2005), for all
Aeronautica S.A. (EMBRAER), P.O. Box EMBRAER Model ERJ 170–100 LR, –100
343—CEP 12.225, Sao Jose dos STD, –100 SE, and –100 SU airplanes.
DEPARTMENT OF TRANSPORTATION Campos—SP, Brazil, for service That AD requires repetitive replacement
information identified in this proposed of the low-stage check valve and
Federal Aviation Administration
AD. associated seals of the right-hand (RH)
14 CFR Part 39 FOR FURTHER INFORMATION CONTACT: engine bleed system. That AD resulted
Todd Thompson, Aerospace Engineer, from a report that an engine shut down
[Docket No. FAA–2007–28094; Directorate International Branch, ANM–116, FAA,
Identifier 2006–NM–258–AD]
during flight due to the failure of the
Transport Airplane Directorate, 1601 low-stage check valve to close. We
RIN 2120–AA64 Lind Avenue, SW., Renton, Washington issued that AD to prevent failure of the
98057–3356; telephone (425) 227–1175; low-stage check valve, which could
Airworthiness Directives; Empresa fax (425) 227–1149. result in an engine shutting down
Brasileira de Aeronautica S.A. SUPPLEMENTARY INFORMATION: during flight.
(EMBRAER) Model ERJ 170 Airplanes
and Model ERJ 190 Airplanes Comments Invited Actions Since Existing AD Was Issued
AGENCY: Federal Aviation We invite you to submit any relevant When we issued AD 2005–23–14, we
Administration (FAA), Department of written data, views, or arguments stated that the unsafe condition could
Transportation (DOT). regarding this proposed AD. Send your occur on both the left-hand (LH) and RH
ACTION: Notice of proposed rulemaking comments to an address listed in the engines and that we had determined
(NPRM). ADDRESSES section. Include the docket that requiring repetitive replacement on
number ‘‘Docket No. FAA–2007–28094; only the RH engine was sufficient, at
SUMMARY: The FAA proposes to Directorate Identifier 2006–NM–258– that time, for reducing the risk of a dual-
supersede an existing airworthiness AD’’ at the beginning of your comments. engine failure to an acceptable level.
directive (AD) that applies to all We specifically invite comments on the Also, when we issued AD 2005–23–14,
EMBRAER Model ERJ 170–100 LR, –100 overall regulatory, economic, there were insufficient low-stage check
STD, –100 SE, and –100 SU airplanes. environmental, and energy aspects of valves available to replace the valves of
The existing AD currently requires the proposed AD. We will consider all both the LH and RH engine bleed
repetitively replacing the low-stage comments received by the closing date systems. We have now determined that
check valve and associated seals of the and may amend the proposed AD in there are sufficient low-stage check
right-hand engine bleed system. This light of those comments. valves to support replacing the valves of
proposed AD adds new airplanes to that We will post all comments we both the LH and RH engine bleed
existing requirement. For all airplanes, receive, without change, to http:// systems. We have further determined
this proposed AD would also require dms.dot.gov, including any personal that it is necessary to require repetitive
repetitively replacing the low-stage information you provide. We will also replacement of the LH low-stage check
check valve and associated seals of the post a report summarizing each valve to further reduce the possibility
left-hand engine bleed system with a substantive verbal contact with FAA for the failure of the low-stage check
new check valve and new seals. This personnel concerning this proposed AD. valve of both engine bleed systems at
proposed AD results from a report that Using the search function of that Web the same time.
an engine shut down during flight due site, anyone can find and read the For Model ERJ 170–200 LR, –200
to the failure of the low-stage check comments in any of our dockets, STD, and –200 SU airplanes, the
valve to close. We are proposing this AD including the name of the individual requirement to repetitively replace the
to prevent failure of the low-stage check who sent the comment (or signed the RH low-stage check valve is contained
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valve, which could result in an engine comment on behalf of an association, in the airworthiness limitations for
shutting down during flight. business, labor union, etc.). You may these airplanes. Therefore, for Model
DATES: We must receive comments on review the DOT’s complete Privacy Act ERJ 170–200 LR, –200 STD, and –200
this proposed AD by June 7, 2007. Statement in the Federal Register SU airplanes, this proposed AD would
ADDRESSES: Use one of the following published on April 11, 2000 (65 FR only require repetitive replacement of
addresses to submit comments on this 19477–78), or you may visit http:// the low-stage check valves of the LH
proposed AD. dms.dot.gov. engine bleed system.

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