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Proposed Rules
Federal Register Vol. 86, No. 158
Thursday, August 19, 2021

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.

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service 7 CFR Part 800
Doc. No. AMSFGIS190062
RIN 0581AD90

Exceptions to Geographic Boundaries Agricultural Marketing Service, USDA.
ACTION: Proposed rule; request for comments.

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AGENCY:

SUMMARY: This notice of proposed rulemaking invites public input on proposed revisions to Federal Grain Inspection regulations. The Agricultural Marketing Service is required to revise the regulations as a result of 2018 Farm Bill amendments to the U.S. Grain Standards Act. Revised regulations would allow designated official agencies to perform grain inspections outside their geographic areas under certain additional conditions. Proposed revisions are based on industry input and are intended to provide additional flexibility to the industry.
DATES: Comments must be received by September 20, 2021.
ADDRESSES: Comments must be submitted through the Federal erulemaking portal at http
www.regulations.gov and should reference the document number and the date and page number of this issue of the Federal Register. All comments submitted in response to this document will be included in the record and will be made available to the public. Please be advised that the identity of individuals or entities submitting comments will be made public on the internet at the address provided above.
FOR FURTHER INFORMATION CONTACT:
Sophie Parker, Deputy Director, Quality Assurance and Compliance Division, Federal Grain Inspection Service, AMS, USDA; email: FGISQACD@usda.gov.
SUPPLEMENTARY INFORMATION: Under the USGSA 7 U.S.C. 71 et seq., each
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official agencies OA in the United States is assigned a specific geographic area where it performs all official grain inspection and weighing services for customers within that geographic area 7
U.S.C. 79f2A. This ensures effective and efficient delivery of official services to all customers within the assigned OAs geographic area and enhances the orderly marketing of grain.
The U.S. Grain Standards Act USGSA
also provides that customers may obtain services from other OAs under certain circumstances. The Secretary may allow OAs to cross geographic boundaries to provide services to requesting customers if: 1 The assigned OA is unable to provide necessary services on a timely basis; 2 the customer has not been receiving official inspection services from the assigned OA; 3 the customer requests probe inspection on barge-lot basis; or 4 the assigned OA agrees in writing with the adjacent OA to waive the current geographic restriction at the customers request 7 U.S.C. 79f2B.
These allowances are considered exceptions to the USGSAs standard requirements regarding the use of designated OAs to perform inspection services within specified geographic areas. Exceptions must be approved on a case-by-case basis by the Agricultural Marketing Services Federal Grain Inspection Service FGIS that administers regulations under the USGSA.1 Regulations in 7 CFR part 800
provide limitations for use of these exceptions.
Service Exceptions A notable exception that has been implemented in the past is known as the nonuse of service exception. In that exception, a customer who had not obtained inspection services from the assigned OA for a specified length of time could obtain services from another OA. At times, regulations required customers to have not used their designated OA for at least 90
consecutive days; at other times the regulations specified a 180-day nonuse period before the customer could apply for service from another OA. However, lack of clarity about how FGIS
determined whether to grant nonuse of service exceptions fostered confusion 1 FGIS, formerly part of USDAs Grain Inspection, Packers and Stockyards Administration, was merged with USDAs Agricultural Marketing Service in 2018.

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and conflicts among involved parties and created a perception of inconsistency regarding the handling of such requests. Congress eliminated the nonuse of service exception from the USGSA in 2015; 2 FGIS subsequently removed that exception from the regulations.3
Although the nonuse of service exception was eliminated from the USGSA in 2015, Congress reinstated authority to implement a nonuse of service exception through an amendment to the USGSA in the 2018
Farm Bill.4 FGIS must now consider regulatory options related to the reinstatement of the nonuse of service exception see 7 U.S.C. 79f2Bii.
On April 1, 2020, FGIS published an advanced notice of proposed rulemaking ANPR 85 FR 18155 to solicit public comments on how FGIS
should amend its criteria for reviewing, approving, and implementing exceptions to USGSAs requirements for geographic boundaries. FGIS received six comments on the ANPR. We have incorporated industry feedback from the ANPR, along with input received during industry meetings, to develop this proposed rule PR. FGIS is requesting public comment on options for timely service and nonuse of service, as defined within this PR. Particularly, FGIS seeks input from industry participants and OAs who use and provide official services and are familiar with grain inspection services under the USGSA. We welcome the submission of data and other information to support commenters views. As a result of public input received on the PR, FGIS will develop a final rule for publication in the Federal Register.
Restoration of Previous Nonuse of Service Exceptions Subsequent to 2015 amendments to the USGSA and the 2016 changes to the FGIS regulations, a number of nonuse of service exceptions were terminated. The 2018 Farm Bill directed USDA to allow for restoration of those exceptions where appropriate. Interested parties were given an opportunity to submit restoration requests to FGIS, as 2 The Agricultural Reauthorizations Act of 2015, enacted September 20, 2015 Pub. L. 11454 sec.
301b3A.
3 81 FR 49855, July 29, 2016.
4 The Agricultural Improvement Act of 2018, enacted December 20, 2018 Pub. L. 115334 sec.
12610a1D.

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