[Federal Register Volume 79, Number 85 (Friday, May 2, 2014)]
[Proposed Rules]
[Pages 25032-25033]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-10033]

Proposed Rules
                                                Federal Register

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.


Federal Register / Vol. 79, No. 85 / Friday, May 2, 2014 / Proposed 

[[Page 25032]]


Agricultural Marketing Service

7 CFR Parts 1005 and 1007

[Docket No. AO-388-A17 and AO-366-A46; DA-05-06-B]

Milk in the Appalachian and Southeast Marketing Areas; 
Termination of Proceeding

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Termination of proceeding.


SUMMARY: This action terminates a proceeding for two remaining 
proposals presented at a hearing held in Louisville, Kentucky, January 
10-12, 2006. The two proposals (Proposal 2 and Proposal 5) would: 
Establish intra-market transportation credit provisions for the 
Appalachian and Southeast Federal milk marketing areas, and reduce 
payments to producers for milk diverted to locations outside of the 
geographic boundaries of the Appalachian and Southeast milk marketing 
areas. The Agricultural Marketing Service believes that the amendments 
adopted as part of a subsequent proceeding addressed the disorderly 
marketing conditions that Proposals 2 and 5 were designed to remedy, 
and therefore action on the proceedings for these two proposals is 

DATES: This termination is made on May 5, 2013.

FOR FURTHER INFORMATION CONTACT: William Francis, Director, Order 
Formulation and Enforcement Division, USDA/AMS/Dairy Programs, Stop 
0231--Room 2971, 1400 Independence Avenue SW., Washington, DC 20250-
0231, (202) 720-7183, email: william.francis@ams.usda.gov.


Executive Orders 12866 and 13563

    This administrative action is governed by the provisions of 
sections 556 and 557 of Title 5 of the United States Code and, 
therefore, is excluded from the requirements of Executive Orders 12866 
and 13563.

Executive Order 12988

    This termination has been reviewed under Executive Order 12988, 
Civil Justice Reform. This rule is not intended to have a retroactive 
effect. The Agricultural Marketing Agreement Act of 1937, as amended 
(Act) (7 U.S.C. 601-674), 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 request 
modification or exemption from such order by filing with the U.S. 
Department of Agriculture (USDA) a petition stating that the order, any 
provision of the order, or any obligation imposed in connection with 
the order is not in accordance with the law. A handler is afforded the 
opportunity for a hearing on the petition. After a 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 its principal place of business, has jurisdiction in equity to 
review USDA's ruling on the petition, provided a bill in equity is 
filed not later than 20 days after the date of the entry of the ruling.

Executive Order 13175

    This termination has been reviewed in accordance with Executive 
Order 13175, Consultation and Coordination with Indian Tribal 
Governments. The review reveals that this regulation will not have 
substantial and direct effects on Tribal Governments and will not have 
significant Tribal implications.

Regulatory Flexibility Act and Paperwork Reduction Act

    As part of the proceedings conducted for this rulemaking, the 
provisions of the Regulatory Flexibility Act (5 U.S.C. 601-612) and the 
Paperwork Reduction Act of 1955 (Pub. L. 104-13) were considered. 
Because this action terminates the underlying rulemaking proceeding, 
the economic conditions of small entities are not changes as a result 
of this action, nor have any compliance requirements changed. Also, 
this action does not provide for any new or changed reporting and 
recordkeeping requirements.

Prior Documents in This Proceeding

    Notice of Hearing: Issued December 22, 2005; published December 28, 
2005 (70 FR 76718).
    Partial Tentative Decision: Issued September 1, 2006; published 
September 13, 2006 (71 FR 54118).
    Partial Interim Rule: Issued October 19, 2006; published October 
25, 2006 (71 FR 62377).
    Partial Final Decision: Issued February 25, 2014; published March 
7, 2014 (79 FR 12985).

Preliminary Statement

    A public hearing was held January 10-12, 2006, in Louisville, 
Kentucky, with respect to proposed amendments to the tentative 
marketing agreement and to the orders regulating the handling of milk 
in the Appalachian and Southeast marketing areas.
    The hearing was called pursuant to the provisions of the Act and 
the applicable rules of practice and procedure governing the 
formulation of marketing agreements and marketing orders (7 CFR part 
900). The purpose of the hearing was to receive evidence with respect 
to the economic and marketing conditions that relate to the proposed 
amendments to the tentative marketing agreements and to the orders.
    This decision terminates the proceeding specifically in regards to 
Proposal 2, which would establish a new transportation credit balancing 
fund on the intra-market movements of milk within the marketing areas, 
and Proposal 5, which would reduce the amount paid to a producer for 
milk diverted to locations outside of the marketing areas.
    Other proposals discussed at the hearing (Proposal 1, 3 and 4) 
would make other adjustments to the transportation credit provisions of 
the two orders. Those proposals were addressed in a separate Final 
Decision (79 FR 12985).
    At the hearing, witnesses testified to the inadequacy of the Class 
I price surface and the related difficulties in attracting adequate 
milk to meet fluid milk demands. This was the underlying disorderly 
marketing condition that led to the initial proposals to adjust 
transportation credit and pooling provisions. Witnesses stated that a 
separate rulemaking proceeding should be held to review the appropriate 

[[Page 25033]]

I differential levels in the southeastern marketing areas.
    Accordingly, the Department held another hearing from May 21-23, 
2007 (72 FR 25986) \1\ in Tampa, Florida, to address, among other 
things, the adequacy of the Class I differential levels in the 
southeastern marketing areas, and additional changes to the 
transportation credit balancing fund that would provide for additional 
transportation cost recovery for milk meeting the order's fluid needs.

    \1\ Official Notice is taken of this proceeding (72 FR 25986).

    An interim final rule was published on March 17, 2008, (73 FR 
14153) that adjusted the Class I price surface for each county within 
the Appalachian, Florida and Southeast marketing orders. In that 
interim final rule, the Department decided to increase blend prices 
through adjustments to the Class I differentials to assist in 
compensating producers for higher transportation costs. In addition, 
more stringent pooling standards and other adjustments to the 
transportation credit provisions were adopted to ensure that milk 
pooled on the southeastern orders was adequately servicing the market's 
fluid needs. These amendments included: (1) Extending the number of 
months in which transportation credit balancing funds are paid (July 
through December) to include the months of January and February, with 
the option of the month of June if requested and approved by the Market 
Administrator; (2) expanding the payment of transportation credits for 
supplemental milk to include the entire load of milk rather than the 
calculated Class I utilization; (3) providing more flexibility in the 
qualification requirements for supplemental milk producers to receive 
transportation credits; and (4) increasing the monthly transportation 
credit assessment rate from $0.20 per cwt to $0.30 per cwt. for the 
Southeast order. A final rule in this related proceeding (79 FR 12963) 
is being issued simultaneously with this termination of proceeding 
making these adjustments permanent in the Appalachian and Southeast 
    The Department believes that the amendments adopted as part of this 
subsequent proceeding addressed the disorderly marketing conditions 
that Proposals 2 and 5 were designed to remedy.

Termination of Proceeding

    In view of the foregoing, it is hereby determined that subsequent 
rulemaking proceedings have addressed the disorderly marketing 
conditions that Proposals 2 and 5 were designed to remedy. Accordingly, 
the proceeding is terminated.

List of Subjects in 7 CFR Parts 1005 and 1007

    Milk marketing orders.

    Dated: April 28, 2014.
Rex A. Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2014-10033 Filed 5-1-14; 8:45 am]