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Federal Register / Vol. 86, No. 39 / Tuesday, March 2, 2021 / Proposed Rules Ultimately, AMS determined that the proposed approach of recalculating the fee each year using a standard formula based on a 5-year supervision tonnage average would provide savings to the industry when the operating reserve balance exceeds FGISs goal and would limit large fee increases following years where supervision tonnage volumes are significantly less. AMS expects the proposed changes to benefit the grain industry by adjusting supervision fee as needed annually to reflect actual expenses related to grain inspections supervision and maintaining appropriate operating reserve balances.
AMS does not expect the proposed rule to provide any environmental, public health, or safety benefits. AMS has not identified any costs related to this proposed action.

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Executive Order 12988
This proposed rule has been reviewed under Executive Order 12988Civil Justice Reform. This proposed rule is not intended to have retroactive effect.
The USGSA provides in Sec. 87g that no State or subdivision thereof may require or impose any requirements or restrictions concerning the inspection, weighing, or description of grain under the Act. This proposed rule will not preempt any State or local laws, regulations, or policies, unless they present an irreconcilable conflict with this proposed rule. No administrative proceedings would be required before parties could file suit in court challenging the provisions of this proposed rule.
Regulatory Flexibility Analysis Pursuant to the requirements set forth in the Regulatory Flexibility Act RFA
5 U.S.C. 601602, AMS has considered the economic impact of this proposed action on small entities. The purpose of the RFA is to fit regulatory actions to the scale of businesses subject to such actions in order that small businesses will not be unduly or disproportionately burdened.
This proposed rule sets the fees for three different FGIS functions: 1 Fees for FGIS Supervision, 2 fees for registration certificates and renewals for exporters of grain, and 3 fees for amending the designation of official agencies.
AMS has determined that this proposed rule does not have a significant economic impact on a substantial number of small entities, because most applicants grain industry that apply for these official services and are subjected to AMS supervision fees, do not meet the requirements for small entities. This proposed rule will affect
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entities engaged in shipping grain to and from points within the United States and exporting grain from the United States to Canada and Mexico.
There are approximately 9,500 off-farm storage facilities in the United States that could receive grain services from delegated States or designated agencies.
AMS estimates 25 percent of these users would be considered small businesses based on criteria established by the Small Business Administration 13 CFR
121.201 SBA to differentiate between large and small business entities. SBA
uses the North American Industry Classification System NAICS to categorize various industry businesses.
SBA defines small grain farmers, NAICS
codes 424510 and 493130, as those whose annual receipts do not exceed $750,000 and no more than 500
employees.
With respect to fees for supervision, those fees are a minor amount compared to the total value of the grain shipments.
The carrier types shipped by small entities are submitted samples and trucks with a standardized weight of 23.95 metric tons and railcars with a standardized weight of 99.79 metric tons. Supervision fees assessed on these carriers at the current published rate are $0.26 per truck with a 2020 corn market year value of $2,700, and $1.10 per railcar with a 2020 corn market year value of $12,600.
The registration certificates and renewal fee applies to persons engaged in the business of buying grain for sale in foreign commerce, and in the business of handling, weighing, or transporting of grain for sale in foreign commerce. Under the provisions of the USGSA, grain exported from the United States must be officially inspected and weighed. Mandatory inspection and weighing services were provided by AMS and official agencies on a fee basis for 73 registered exporters in CY 2019.
Seventy-seven of the currently registered entities are owned and managed by multi-national corporations, large cooperatives, or public entities that do not meet the criteria for small entities established by the SBA. In 2019, approximately 11
small exporters registered with FGIS, and in 2020 approximately 7 small exporters registered with FGIS. As explained, with the estimated calculation of the registration fees for 2021 at $300, FGIS believes the registration fees would have a minor effect on the small number of small business that register with FGIS.
Finally, the designation amendment applies to an official agency requesting a modification to its designation within the five-year designation period. AMS

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has 42 designated States and agencies, and thirteen of these designated agencies meet the criteria for small entities established by the SBA. As explained earlier, the estimated designation amendment fee for 2021
would be $510. FGIS believes the designation amendment fee would have a minor impact on small businesses, since it typically receives no more than two modification requests per year.
Proposed adoption of standardized AMS user-fee rate calculations for 2021
and beyond would benefit all inspection applicants, regardless of size, as fees would more closely reflect the current cost of inspections, and the fee calculation process would be more transparent. Through its annual review, AMS would be able to monitor the financial status of the grain supervision program to determine whether further adjustments are necessary.
AMS has determined this proposed rule would not have a significant economic impact on a substantial number of entities as defined under the RFA because fewer than half the applicants for grain inspection services meet the definition of small entities.
Finally, USDA has not identified any relevant Federal rules that duplicate, overlap, or conflict with this proposed rule.
Paperwork Reduction Act and EGovernment Act In compliance with the Paperwork Reduction Act of 1995 44 U.S.C.
Chapter 35, the information collection and record keeping requirements of the supervision of official agencies program have previously been approved by OMB
under control number 05800013. No additional reporting, record keeping, or other compliance requirements would be imposed as a result of this proposed rule.
AMS is committed to complying with the E-Government Act 44 U.S.C. 3601
et seq., to promote the use of the internet and other information technologies to provide increased opportunities for citizen access to Government information and services, and for other purposes.
List of Subjects in 7 CFR Part 800
Administrative practice and procedure, Grain.
For the reasons set forth in the preamble, AMS proposes to amend 7
CFR part 800 as follows:
PART 800GENERAL REGULATIONS
1. The authority citation for part 800
continues to read as follows:

Authority: 7 U.S.C. 7187k.

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