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Federal Register / Vol. 86, No. 36 / Thursday, February 25, 2021 / Rules and Regulations
information collection and recordkeeping requirements previously approved and will impose no additional reporting and recordkeeping burden on domestic manufacturers and importers of softwood lumber.
As with all Federal promotion programs, reports and forms are periodically reviewed to reduce information requirements and duplication by industry and public sector agencies. USDA has not identified any relevant Federal rules that duplicate, overlap, or conflict with this rule.
AMS is committed to complying with the E-Government Act, 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.
A proposed rule concerning this action was published in the Federal Register on August 13, 2020 85 FR
49281. A 60-day comment period ending October 13, 2020, was provided to allow interested persons to submit comments.
Analysis of Comments Twenty-nine comments were received in response to the proposed rule. Of those 29 comments, 22 supported the proposed assessment increase, six opposed the action, and one was outside the scope of the rulemaking.
Overall, commenters in support of the proposal expressed that increasing market share by developing new markets and uses for softwood lumber products while addressing the continued pressures from competitors is paramount to the continued success of the softwood lumber industry. They contend this may only be accomplished by the increased investment in the softwood lumber program. One commenter, who identified as a small sawmill, argued that the proposed increase was not enough, and an assessment rate of $0.50 per mfb or more was warranted to continue promoting and developing new markets and uses for softwood lumber products.
Commenters expressed the need for continued work on wood standards and the adoption of using wood-based products in non-traditional markets.
They emphasized the importance of educational programs and continued technical assistance for builders, designers, developers, architects and engineers. Several commenters discussed the benefit of being able to work collaboratively as an industry to drive demand for softwood lumber, noting that the efforts of the program are critical to the long-term success of the
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softwood lumber industry. Commenters noted the return on investment and incremental demand results from the most recent program evaluation as evidence of the success of the program thus far. And two commenters mentioned the results of the 2018
continuance referendum 78 percent of manufacturers and importers voting, who represented 94 percent of the volume of softwood lumber, were in favor of continuing the program to demonstrate the continued support of the industry for the program.
Out of the six comments in opposition, three commenters noted that the industry is currently seeing record demand and historically high prices, and that the need for an increase in the assessment to fund programming geared towards creating additional demand is not necessary. Two commenters noted that the Board should be able to create demand at the current funding levels.
One commenter simply opposed the increase, but did not provide further detail. In its discussion of the proposed increase, the Board determined that continuing at the current funding level would limit its ability to maintain the impact it has achieved for the softwood lumber industry in prior years. It reviewed its revenues and expenditures for the past several fiscal periods and agreed that without the increase it would not be able to maintain its current programs nor be able to address gaps that limit the Boards ability to expand the market for softwood lumber.
Additionally, it believed current funding levels restricts its ability to accelerate softwood lumbers increase in market share and lumber usage in the non-traditional markets. In formulating the proposed increase, the Board reviewed several different rate options, including not increasing the rate, but ultimately decided that additional funds generated by the increase are needed to maintain and expand markets for softwood lumber. None of the commenters provided comments on the addition of the conversion factor and the conforming change. Accordingly, no changes will be made to the rule as proposed, based on the comments received.
After consideration of all relevant material presented, including the information and recommendations submitted by the Board, the comments received, and other available information, it is hereby found that this rule, as hereinafter set forth, is consistent with and will effectuate the purposes of the 1996 Act.

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List of Subjects in 7 CFR Part 1217
Administrative practice and procedure, Advertising, Consumer information, Marketing agreements, Softwood Lumber promotion, Reporting and recordkeeping requirements.
For the reasons set forth in the preamble, 7 CFR part 1217 is amended as follows:
PART 1217SOFTWOOD LUMBER
RESEARCH, PROMOTION, CONSUMER EDUCATION AND
INDUSTRY INFORMATION ORDER
1. The authority citation for 7 CFR
part 1217 continues to read as follows:

Authority: 7 U.S.C. 74117425; 7 U.S.C.
7401.

2. Amend 1217.52 by revising paragraphs b, c, and h to read as follows:

1217.52

Assessments.

b Subject to the exemptions specified in 1217.53, each manufacturer for the U.S. market shall pay an assessment to the Board at the rate of $0.41 per thousand board feet of softwood lumber, except that no person shall pay an assessment on the first 15
million board feet of softwood lumber otherwise subject to assessment in a fiscal year. Domestic manufacturers shall pay assessments based on the volume of softwood lumber shipped within the United States and importers shall pay assessments based on the volume of softwood lumber imported to the United States.
c At least 24 months after the Order becomes effective and periodically thereafter, the Board shall review and may recommend to the Secretary, upon an affirmative vote by at least a majority of Board members plus two exclusive of vacant seats, a change in the assessment rate. In no event may the rate be less than $0.35 per thousand board feet nor more than $0.50 per thousand board feet. A change in the assessment rate is subject to rulemaking by the Secretary.

h The HTSUS categories and assessment rates on imported softwood lumber are listed in the following table.
The assessment rates are computed using the following conversion factors:
One cubic meter m3 equals 0.423776001 thousand board feet, and one square meter m2 equals 0.010763104 thousand board feet.
Accordingly, the assessment rate per cubic meter and square meter is as follows.

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