[Federal Register Volume 82, Number 155 (Monday, August 14, 2017)]
[Proposed Rules]
[Pages 37827-37829]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-17100]


========================================================================
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. 82, No. 155 / Monday, August 14, 2017 / 
Proposed Rules

[[Page 37827]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1051

[Docket No. AO-15-0071; AMS-DA-14-0095]


Proposed California Federal Milk Marketing Order; Documents for 
Official Notice

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Request for public comments.

-----------------------------------------------------------------------

SUMMARY: This document announces the intention of the Agricultural 
Marketing Service (AMS) to take Official Notice of documents related to 
the California Federal Milk Marketing Order (FMMO) rulemaking 
proceeding. This document invites interested parties to submit comments 
on whether the documents are relevant to the material issues of the 
proceeding.

DATES: Comments are due August 29, 2017.

ADDRESSES: Comments should be submitted at the Federal eRulemaking 
portal: www.regulations.gov. Comments may also be filed with the 
Hearing Clerk, U.S. Department of Agriculture, Room 1031-S, Washington, 
DC 20250-9200, Facsimile number (202) 720-9976. All comments should 
reference the docket number and the date and page number of this issue 
of the Federal Register. All comments will be made available for public 
inspection in the Office of the Hearing Clerk during regular business 
hours, or can be viewed at: www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Erin Taylor, Acting Director, Order 
Formulation and Enforcement Division, USDA/AMS/Dairy Program, STOP 
0231, Room 2969-S, 1400 Independence Ave. SW., Washington, DC 20250-
0231, telephone: (202) 720-7311, or email address: 
[email protected].

SUPPLEMENTARY INFORMATION: The U.S. Department of Agriculture 
(Department) held a hearing from September 22, 2015, through November 
8, 2015, regarding promulgation of a Federal Milk Marketing Order 
(FMMO) in California. During the hearing, participants requested the 
Department take Official Notice of several documents and resources 
relevant to the proceeding. The Administrative Law Judge presiding over 
the hearing ruled that interested parties could submit requests for 
Official Notice of documents and resources through their post-hearing 
briefs, and the Department could then make a determination regarding 
the requests.
    Two parties submitted Official Notice requests in their post-
hearing briefs and provided lists and sources for the relevant 
documents. On February 14, 2017, the Department published in the 
Federal Register a recommended decision on the establishment of a 
California FMMO (82 FR 10634). After an initial review, the Department 
took Official Notice of many of the documents in the recommended 
decision. However, the Department did not make a formal determination 
regarding others.
    Two comments filed in response to the recommended decision took 
exception to the fact that the Department did not rule upon all 
documents requested for Official Notice submitted in post-hearing 
briefs by California Dairies, Inc.; Dairy Farmers of America, Inc.; and 
Land O'Lakes, Inc. (the Cooperatives); and by the Dairy Institute of 
California (the Institute).
    In response, AMS is considering taking Official Notice of these 
additional documents. The Code of Federal Regulations (7 CFR 900.8) 
requires providing interested parties an opportunity to object to 
taking Official Notice of documents because they are inaccurate or 
erroneously noticed; for example, if they are not relevant to the 
material issues of the proceeding. This Notice serves to provide 
interested parties the opportunity to object to the documents below if 
they believe that any do not meet the requirements of 7 CFR 900.8.
    A complete list of these documents, along with links and sources to 
access them, is available at www.ams.usda.gov/caorder. Comments should 
focus on whether the documents are relevant to the material issues of 
the California FMMO proceeding, which are as follows:
    1. Whether the handling of milk in the proposed marketing area is 
in the current of interstate commerce, or directly burdens, obstructs, 
or affects interstate commerce in milk or its products;
    2. Whether economic and marketing conditions in California show a 
need for a Federal marketing order that would tend to effectuate the 
declared policy of the Act;
    3. If an order is issued, what its provisions should be with 
respect to:
    a. Handlers to be regulated and milk to be priced and pooled under 
the order;
    b. Classification of milk, and assignment of receipts to classes of 
utilization;
    c. Pricing of milk;
    d. Distribution of proceeds to producers; and
    e. Administrative provisions.
    The Department will consider any objections filed prior to making a 
determination in this matter.
    The Department compiled the following list after reviewing the 
documents submitted for Official Notice, verifying or correcting the 
titles provided, and determining whether publically accessible sources 
exist. As interested parties did not provide hard copies of the 
documents they were requesting for Official Notice, those documents for 
which a source was not provided or that the Department determined to 
lack a publically accessible source are excluded from Official Notice 
consideration.

Academic Sources

     Pratt, James E., Phillip M. Bishop, Eric M. Erba, Andrew 
M. Novakovic, and Mark W. Stephenson: A Description of the Methods and 
Data Employed in the U.S. Dairy Sector Simulator, Cornell Program on 
Dairy Markets and Policy, July 1997;
     Pratt, James E., Phillip M. Bishop, Eric M. Erba, Andrew 
M. Novakovic, and Mark W. Stephenson: Normative Estimates of Class I 
Prices Across U.S. Milk Markets, Cornell Program on Dairy Markets and 
Policy, July 1998;
     Class I Surface Maps, March 2014 and September 2014: Mark 
Stephenson;
     Jacobson, Robert E., et al., Research Bulletin 1105: 
Pricing Grade A Milk Used in Manufactured Dairy Products, Ohio 
Agriculture Research and Development Center, December 1978; and

[[Page 37828]]

     Baker, Burton A., and Rudolph K. Froker: The Evaporated 
Milk Industry Under Federal Marketing Agreements, University of 
Wisconsin, August 1945.

Agricultural Marketing Service (AMS) Data and Publications

     AMS Dairy Market News, weekly reports, January 1, 2015-
April 2016;
     AMS Dairy Market Statistics, annual reports, 1997-2015;
     AMS FMMO Marketing and Utilization Summary, annual, 2015;
     AMS FMMO Statistics, annual summaries, 1980-2015;
     AMS Mailbox Milk Prices, monthly, January 2012-February 
2016;
     AMS Market Information Branch Publication: Measures of 
Growth in Federal Milk Orders, September 2016;
     AMS National Dairy Product Sales Reports, weekly, 2012-
2016;
     AMS Regulatory Impact Analysis on FMMO Reform, March 1999;
     Letter to Handlers in FMMO 1 regarding temporary dumped 
milk policy, March 2016;
     Letter to Handlers in FMMO 1 regarding temporary dumped 
milk policy, December 2015;
     List of Supply Plant Systems: Upper Midwest Marketing 
Area, annual, 2014-2016;
     Lists of Plants and Handlers: Northeast Marketing Area, 
monthly, 2014-2016;
     Lists of Plants and Handlers: Pacific Northwest and 
Arizona Marketing Area, monthly, 2014-2016;
     Lists of Plants, Handlers, and Cooperative Associations: 
Upper Midwest Marketing Area, monthly, 2014-2016; and
     USDA response to industry request for a national hearing 
on FMMO program prices, September 17, 2012.

California Department of Food and Agriculture (CDFA) Data and 
Publications

     CDFA Annual Dairy Data, 2015;
     CDFA Appendix: Glossary of Dairy Terms;
     CDFA California Dairy Plant List, 2015;
     CDFA California Dairy Statistics, annual, 2014 and 2015;
     CDFA California Price Data, weighted average prices 
received for nonfat dry milk and volumes sold by California processors, 
weekly and monthly;
     CDFA CME Cheddar Cheese and Butter Prices vs. California 
Sales, monthly, February 2004-November 2013;
     CDFA Dairy Industry Fact Sheet, 2000;
     CDFA Dairy Manufacturing Cost Surveys (September 18, 2007; 
November 14, 2013; and December 9, 2015);
     CDFA Dairy Product Data, monthly, 2014-year-to-date;
     CDFA Designated Supply Handlers for Procurement, Regions 1 
and 2, 2015-2016;
     CDFA Full Manufacturing Cost Survey, 2014;
     CDFA Hearing Panel Report on Class 4b Pricing, June 2015;
     CDFA Milk Production Cost Data, quarterly, 2013-2016;
     CDFA Milk Production Pooling Data, monthly, 2014;
     CDFA Dairy Review Newsletters, monthly, 2003-2016;
     CDFA Pooling Plan for Market Milk as Amended, June 2013;
     CDFA Stabilization and Marketing Plan for Market Milk as 
Amended, Northern California Marketing Area, August 2015;
     CDFA Stabilization and Marketing Plan for Market Milk as 
Amended, Southern California Marketing Area, August 2015;
     CDFA Statistics and Trends Annual Tables and Data, 2014;
     CDFA Statistics and Trends Mid-Year Review, January-June 
2015;
     CDFA transcripts from Public Hearing to Consider 
Amendments to Stabilization and Marketing Plans (Class 4b pricing 
formula changes), June 2015; and
     CDFA Water Quality Regulations for Dairy Operators in 
California's Central Valley-Overview and Compliance Cost Analysis, 
November 2010.

California State Statutes

     California Food and Agriculture Code: Division 21, Part 3, 
Chapter 1, Sections 61301-61573: Marketing of Milk and Other Dairy 
Products;
     California Food and Agriculture Code: Division 21, Part 3, 
Chapter 2, Sections 61801-62402: Stabilization and Marketing of Market 
Milk;
     California Food and Agriculture Code: Division 21, Part 3, 
Chapter 2.5, Sections 62500-62667: Milk Producer's Security Fund;
     California Food and Agriculture Code: Division 21, Part 3, 
Chapter 3, Sections 62700-62731: Equalization Pools; and
     California Food and Agriculture Code: Division 21, Part 3, 
Chapter 3.5, Sections 62750-62757: Milk Pooling.

Congressional Legislation

     1965 Farm Bill;
     1970 Farm Bill;
     1985 Farm Bill;
     2008 Farm Bill;
     2000 Appropriations for Agriculture, Rural Development, 
Food and Drug Administration, and Related Agencies; and
     Milk Regulatory Equity Act of 2005.

Economic Research Service (ERS) Publications

     ERS Dairy Data Spreadsheets: U.S. Dairy Situation at a 
Glance; Dairy Products Per Capita Consumption; Milk Cows and Production 
by State and Region; Annual Milk Production and Factors Affecting 
Supply; Per Capita Consumption of Selected Cheese Varieties (most 
current spreadsheets);
     ERS Milk Costs of Production: Costs and returns per 
hundredweight sold by state, annual, 2010-2014;
     ERS Milk Costs of Production: Costs and returns per 
hundredweight sold by size group, annual, 2014 (data set contains 2010-
2014);
     ERS Milk Costs of Production: U.S. dairy costs of 
production per hundredweight of milk sold, monthly, 2015;
     ERS Publication: Pricing Milk and Dairy Products: 
Principles, Practices, and Problems, 1971;
     ERS Report to Congress: Report on the United States 
Department of Agriculture's Reporting Procedures for Nonfat Dry Milk, 
September 2007;
     ERS Situation and Outlook Reports: Feed Outlook Reports, 
monthly, 2014-2015; and
     ERS Situation and Outlook Reports: Livestock, Dairy and 
Poultry Outlook Reports (Dairy Part), monthly, 2014-2016.

National Agricultural Statistics Service (NASS) Data and Publications

     NASS Dairy Products Mandatory Program Web page;
     NASS Dairy Products Prices, weekly, 1998-2012;
     NASS Dairy Products, annual summary, 1997-2015 (data for 
1995-2014);
     NASS Dairy Products, monthly, January 2015-April 2016;
     NASS Milk Cows and Production Final Estimates (SB 988), 
data covers 1998-2002;
     NASS Milk Cows and Production Final Estimates (SB 1022), 
data covers 2003-2007;
     NASS Milk Cows and Production Final Estimates (SB 1036), 
data covers 2008-2012;
     NASS Milk Production, Disposition, and Income Annual 
Summary, 1995-2015;
     NASS Milk Production, monthly reports, January 2015-
February 2016;
     NASS Overview of the United States Dairy Industry, 
September 22, 2010;

[[Page 37829]]

     NASS Dairy Products Prices: How Does That Work?; and
     NASS Survey Cheddar Cheese Price Data (May 23, 1997; June 
27, 1997; August 1, 1997; September 5, 1997; October 10, 1997; December 
19, 1997; December 29, 1997; January 23, 1998; February 20, 1998; March 
20, 1998; April 24, 1998; May 29, 1998; June 26, 1998; July 31, 1998; 
August 28, 1998; and October 2, 1998).

USDA Office of the Chief Economist Publication

     Drought Monitor: Percentage of crops and livestock located 
in drought, March 2016.

Federal Government Resources

     Census Bureau data on Upper Midwest FMMO, Market Area 
Population;
     Energy Information Administration Weekly Retail Gasoline 
and Diesel Prices, January 2011-July 2015;
     Federal Highway Administration Highway Statistics Summary 
to 1995; and
     Federal Highway Administration Highway Statistics, Annual 
Issues, 1995-2012.

Federal Register Publications

     3 FR 1945-1949 regarding the handling of milk in the New 
York Metropolitan Marketing Area, August 1938;
     26 FR 7134-7141 regarding amendments to the Chicago 
marketing order, August 1961;
     27 FR 799-816 regarding amendments to pricing of milk 
reserves and excess reserves, January 1962;
     31 FR 7062 regarding a Puget Sound, Washington, market 
area expansion and amendments to producer-handler definition, May 1966;
     39 FR 11567-11571 regarding a partial decision on 
emergency measures to suspend butter powder prices, March 1974;
     44 FR 48128-48130 regarding a decision to not promulgate 
an order in the Southwestern Idaho-Eastern Oregon marketing area, 
August 1979;
     50 FR 32716, 32718-32719 regarding a decision to expand 
two marketing areas and revise location differentials in the Middle 
Atlantic and New York-New Jersey areas, August 1985;
     52 FR 15951-15960 regarding termination of proceedings on 
proposed amendments to the Georgia and certain other marketing areas, 
May 1987;
     53 FR 686-731 regarding the merger of two marketing areas 
in the Great Basin and Lake Mead marketing areas, January 1988;
     53 FR 36321-36334 regarding a final decision to provide 
partial credits to handlers hauling surplus milk in the Texas marketing 
area, September 1988;
     55 FR 25618-25669 regarding promulgation of a Carolina 
FMMO, June 1990;
     56 FR 57850-57864 regarding a decision to adopt multiple 
component pricing for the Mid-Atlantic FMMO, November 1991;
     58 FR 58112-58137 regarding amendments to the New England 
and Certain Other Marketing Areas, October 1993;
     59 FR 8546-8565 regarding amendments to the Pacific 
Northwest and Southwestern Idaho-Eastern Oregon Marketing Areas, 
February 1994;
     60 FR 7290-7333 regarding amendments to the New England 
and Other Marketing Areas, February 1995;
     60 FR 25014-25071 regarding amendments to the Georgia and 
Certain Other Marketing Areas, May 1995;
     60 FR 41833-41868 regarding amendments to the Chicago 
Regional and Other Marketing Areas, August 1995;
     60 FR 43066-43089 regarding amendments to the Southern 
Michigan Marketing Area, August 1995;
     64 Fed Reg. 70868-70912 regarding amendments to the New 
England and Other Marketing Areas, December 1999;
     65 FR 76832-76861 regarding amendments to the Northeast 
and Other Marketing Areas, December 2000;
     70 FR 74166, 7418 regarding a final decision on amendments 
to the Pacific Northwest and Arizona-Las Vegas Marketing Areas, 
December 2005;
     71 FR 67467-67495 regarding amendments to the Northeast 
and Other Marketing Areas, November 2006;
     73 FR 11194-11229 regarding amendments to the Appalachian, 
Florida, and Southeast Marketing Areas, February 2008;
     73 FR 35306-35331 regarding amendments to the Northeast 
and Other Marketing Areas, June 2008;
     75 FR 33534-33533 regarding amendments to the Northeast 
and Other Marketing Areas, June 2010; and
     78 FR 9248 regarding a final decision to adopt changes to 
the make allowances and butterfat yield factor in Class III and IV 
price formulas, February 2013.

    Authority:  7 U.S.C. 601-608.

    Dated: August 8, 2017.
Bruce Summers,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2017-17100 Filed 8-11-17; 8:45 am]
 BILLING CODE 3410-02-P