45057 Rules and Regulations Federal Register Vol. 85, No. 144 Monday, July 27, 2020 This section of the FEDERAL REGISTER effects, distributive impacts and equity). the petitioner resides or conducts contains regulatory documents having general Executive Order 13563 emphasizes the business shall have the jurisdiction to applicability and legal effect, most of which importance of quantifying both costs review a final ruling on the petition, if are keyed to and codified in the Code of and benefits, reducing costs, the petitioner files a complaint for that Federal Regulations, which is published under harmonizing rules and promoting purpose not later than 20 days after the 50 titles pursuant to 44 U.S.C. 1510. flexibility. This action falls within a date of the entry of USDA’s final ruling. category of regulatory actions that the The Code of Federal Regulations is sold by Background the Superintendent of Documents. Office of Management and Budget (OMB) exempted from Executive Order This rule changes the eligibility 12866 review. Additionally, because requirements for nominees representing DEPARTMENT OF AGRICULTURE this rule does not meet the definition of domestic manufacturers on the Board. a significant regulatory action it does The Board administers the Softwood Agricultural Marketing Service not trigger the requirements contained Lumber Research, Promotion, Consumer in Executive Order 13771. See OMB’s Education and Industry Information 7 CFR Part 1217 Memorandum titled ‘‘Interim Guidance Order (Order) with oversight by the [Document Number AMS–SC–20–0031] Implementing Section 2 of the Executive USDA. Pursuant to the Order, Order of January 30, 2017, titled assessments are collected from domestic Softwood Lumber Research, ‘Reducing Regulation and Controlling manufacturers and importers, and are Promotion, Consumer Education and Regulatory Costs’ ’’ (February 2, 2017). used for research and promotion Industry Information Order; Change to Executive Order 13175 projects designed to strengthen the the Board Membership Eligibility position of softwood lumber in the Requirements This action has been reviewed in marketplace. This change was accordance with the requirements of recommended to the Secretary by the AGENCY: Agricultural Marketing Service, Executive Order 13175, Consultation Board at its February 26, 2020, meeting, USDA. and Coordination with Indian Tribal and will contribute to the effective ACTION: Final rule. Governments. The review reveals that administration of the program. this regulation would not have Section 1217.40 provides for the SUMMARY: This rule changes the substantial and direct effects on Tribal eligibility requirements for nominees establishment of the Board. The Board governments and would not have is comprised of manufacturers for the representing domestic manufacturers on significant Tribal implications. the Softwood Lumber Board (Board) U.S. market who manufacture and under the Agricultural Marketing Executive Order 12988 domestically ship or import 15 million Service’s (AMS) regulations regarding a This rule has been reviewed under board feet or more of softwood lumber national research and promotion Executive Order 12988, Civil Justice in the United States during a fiscal program for softwood lumber. This Reform. It is not intended to have period. In November 2018, the Board change will help facilitate program retroactive effect. Section 524 of the recommended revising the Board operations. 1996 Act (7 U.S.C. 7423) provides that composition from 19 to 14 members it shall not affect or preempt any other over a three-year period. The Board took DATES: Effective August 26, 2020. Federal or State law authorizing into consideration the consolidation of FOR FURTHER INFORMATION CONTACT: promotion or research relating to an the softwood lumber industry since the Andrea Ricci, Marketing Specialist, agricultural commodity. inception of the program, along with the Promotion and Economics Division, Section 519 of the 1996 Act (7 U.S.C. number of companies eligible to be Specialty Crops Program, AMS, USDA, 7418) provides that a person subject to represented on the Board. Additionally, 755 E Nees Avenue #25985, Fresno, CA an order may file a written petition with the Board recommended that U.S. Board 93720; telephone: (202) 572–1442; or U.S. Department of Agriculture (USDA) members reside in the region they electronic mail: [email protected]. stating that an order, any provision of an represent. This was intended to ensure SUPPLEMENTARY INFORMATION: This rule order, or any obligation imposed in that entities from outside the U.S. that affecting 7 CFR part 1217 (herein the connection with an order, is not own softwood lumber entities within ‘‘Order’’) is authorized by the established in accordance with the law, the U.S. could only represent a U.S. Commodity Promotion, Research, and and request a modification of an order region on the Board if the individual Information Act of 1996 (1996 Act) (7 or an exemption from an order. Any seeking nomination resided in the U.S.C. 7411–7425). petition filed challenging an order, any respective region. The recommendation provision of an order, or any obligation was finalized in a rule that was Executive Orders 12866, 13563, and imposed in connection with an order, published in the Federal Register on 13771 must be filed within two years after the September 25, 2019 (84 FR 50294). The Executive Orders 12866 and 13563 effective date of an order, provision, or 2021 Board and each subsequent Board direct agencies to assess all costs and obligation subject to challenge in the shall be comprised of 14 members, 10 of benefits of available regulatory petition. The petitioner will have the whom shall represent domestic alternatives and, if regulation is opportunity for a hearing on the manufacturers and four of whom shall necessary, to select regulatory petition. Thereafter, USDA will issue a represent importers. Domestic approaches that maximize net benefits ruling on the petition. The 1996 Act manufacturer Board members represent (including potential economic, provides that the district court of the three regions: U.S. South Region; U.S. environmental, public health and safety United States for any district in which West Region; and Northeast and Lake VerDate Sep<11>2014 18:39 Jul 24, 2020 Jkt 250001 PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 E:\FR\FM\27JYR1.SGM 27JYR1 jbell on DSKJLSW7X2PROD with RULES 45058 Federal Register / Vol. 85, No. 144 / Monday, July 27, 2020 / Rules and Regulations States Region. The Order prescribes that seek nomination in one of the regions small businesses will not be domestic manufacturer representatives where the manufacturer they represent disproportionately burdened. The Small reside in the region they represent. has operations will provide flexibility to Business Administration (SBA) defines, the Order, while maintaining the intent in 13 CFR part 121, small agricultural Board Recommendation that Board members representing service firms (domestic softwood The Board met on February 26, 2020, domestic manufacturers reside in the lumber manufacturers and importers) as and recommended the Order be revised U.S. This change will help facilitate those having annual receipts of no more to allow a domestic manufacturer’s program operations. Therefore, than $8 million.1 representative to seek nomination in § 1217.40 (b)(1), (b)(1)(i), (b)(1)(ii), and The Random Lengths Publications, any of the regions where the (b)(1)(iii) will be revised accordingly. Inc.’s yearly average framing lumber manufacturer they represent has composite price was $356 per thousand Final Regulatory Flexibility Act manufacturing operations. The current board feet (mbf) in 2019. Dividing the $8 Analysis Order limits manufacturer million threshold that defines an representatives to seek nomination only In accordance with the Regulatory agricultural service firm as small by this in the region where he or she resides. Flexibility Act (RFA) (5 U.S.C. 601– price results in a maximum threshold of The Board conducted nominations 612), the Agricultural Marketing Service 22.5 million board feet (mmbf) of under the newly implemented (AMS) is required to examine the softwood lumber per year that a provisions and found that clarification impact of the action on small entities. domestic manufacturer or importer may in the Order was needed to reflect the Accordingly, AMS has considered the ship to be considered a small entity for multi-regional nature of manufacturers economic impact of this action on such purposes of the RFA. Table 1 shows the rather than the individual nominee. entities. number of entities and the amount of Several domestic manufacturers have The purpose of the RFA is to fit volume they represent that may be operations in multiple U.S. regions. regulatory actions to the scale of categorized as small or large based on Revising the Order to allow a person to businesses subject to the actions so that the SBA definition. TABLE 1—DOMESTIC MANUFACTURERS AND IMPORTERS BY SBA SIZE STANDARDS [2019] Domestic manufacturers Importers Totals Volume Volume Volume Entities (MMBF) Entities (MMBF) Entities (MMBF) Small ........................................................ 226 1,991 774 1,257 1,000 3,248 Large ........................................................ 290 32,229 106 32,582 396 64,811 Total .................................................. 516 34,220 880 33,839 1,396 68,059 Sources: Forest Economic Advisors; Customs and Border Protection. As shown in Table 1, there are a total