USDA's regulations cover a broad range of issues. Within the rulemaking process is the department-wide effort to reduce burden on participants and program administrators alike by focusing on improving program outcomes, and particularly on achieving the performance measures specified in the USDA and agency Strategic Plans. Significant focus is being placed on efficiencies that can be achieved through eGov activities, the migration to efficient electronic services and capabilities, and the implementation of focused, efficient information collections necessary to support effective program management. Important areas of activity include the following:
¤ USDA will continue regulatory work to protect the health and value of U.S. agricultural and natural resources while facilitating trade flows. This includes amending regulations related to the importation of fruits and vegetables, nursery products, and animals and animal products, and continuing work related to regulation of plant and animal biotechnologies. In addition, USDA will propose specific standards for the humane handling, care, treatment, and transportation of birds under the Animal Welfare Act.
¤ In the area of food safety, USDA will continue to develop science-based regulations that improve the safety of meat, poultry, and egg products in the least burdensome and most cost-effective manner. In May 2006, an enhanced small business outreach program was established. The agency will collaborate in this initiative with other USDA agencies and cooperating State partners. Regulations will be revised to address emerging food safety challenges, streamlined to remove excessively prescriptive regulations, and updated to be made consistent with hazard analysis and critical control point principles.
¤ As changes are made for the nutrition assistance programs, USDA will work to foster actions that will help improve diets, and particularly to prevent and reduce overweight and obesity. In 2007, FNS will continue to promote nutritional knowledge and education while minimizing participant and vender fraud.
¤ USDA has a priority to improve access to natural resources of Forest Service land by developing leases and expedited reviews of permits. If accomplished, the use of oil or natural gas could be used in accelerating the completion of projects while maintaining the safety of public health, environment and working to reduce dependence on foreign oil.
¤ USDA will continue to promote economic opportunities for agriculture and rural communities through its Federal Biobased Product Preferred Procurement Program (FB4P). The Department will continue to designate groups of biobased products to receive procurement preference from Federal agencies and contractors. In addition, USDA intends to publish rules establishing the Voluntary Labeling Program for biobased products.
Reducing Paperwork Burden on Customers
USDA has made substantial progress in implementing the goal of the Paperwork Reduction Act of 1995 to reduce the burden of information collection on the public. To meet the requirements of the Government Paperwork Elimination Act (GPEA) and the E-Government Act, agencies across USDA are providing electronic alternatives to their traditionally paper-based customer transactions. As a result, producers increasingly have the option to electronically file forms and all other documentation online. To facilitate the expansion of electronic government, USDA implemented an electronic authentication capability that allows customers to "sign-on" once and conduct business with all USDA agencies. Supporting these efforts are ongoing analyses to identify and eliminate redundant data collections and streamline collection instructions. The end result of implementing these initiatives is better service to our customers enabling them to choose when and where to conduct business with USDA.
The Role of Regulations
The programs of USDA are diverse and far reaching, as are the regulations that attend their delivery. Regulations codify how USDA will conduct its business, including the specifics of access to, and eligibility for, USDA programs. Regulations also specify the responsibilities of State and local governments, private industry, businesses, and individuals that are necessary to comply with their provisions.
The diversity in purpose and outreach of USDA programs contributes significantly to USDA being near the top of the list of departments that produce the largest number of regulations annually. These regulations range from nutrition standards for the school lunch program, to natural resource and environmental measures governing national forest usage and soil conservation, to emergency producer assistance as a result of natural disasters, to regulations protecting American agribusiness (the largest dollar value contributor to exports) from the ravages of domestic or foreign plant or animal pestilence, and they extend from farm to supermarket to ensure the safety, quality, and availability of the Nation's food supply.
Many regulations function in a dynamic environment, which requires their periodic modification. The factors determining various entitlement, eligibility, and administrative criteria often change from year to year. Therefore, many significant regulations must be revised annually to reflect changes in economic and market benchmarks.
Almost all legislation that affects USDA programs has accompanying regulatory needs, often with a significant impact. The Farm Security and Rural Investment Act of 2002, Public Law 107-171; the Child Nutrition and WIC Reauthorization Act of 2004, Public Law 108-265; and the Agricultural Risk Protection Act of 2000, Public Law 106-224, affect most agencies of USDA resulting in the modification, addition, or deletion of many programs. These statutes set in motion rulemakings that provide for improvements in market loss and conservation assistance, crop and livestock disease and pest protection, marketing enhancements, pollution control, research and development for biomass, and refinements to the nutrition assistance programs to help ensure the best practical outcomes for beneficiaries and the taxpayer.
Major Regulatory Priorities
This document represents summary information on prospective significant regulations as called for in Executive Order 12866. The following agencies are represented in this regulatory plan, along with a summary of their mission and key regulatory priorities for 2007:
Food and Nutrition Service
Mission: FNS increases food security and reduces hunger in partnership with cooperating organizations by providing children and low-income people access to food, a healthful diet, and nutrition education in a manner that supports American agriculture and inspires public confidence.
Priorities: In addition to responding to provisions of legislation authorizing and modifying Federal nutrition assistance programs, FNS' 2006 regulatory plan supports USDA's Strategic Goal 5, "Improve the Nation's Nutrition and Health," and its three related objectives:
Improve Access to Nutritious Food. This objective represents FNS' efforts to improve nutrition by providing access to program benefits (Food Stamps, WIC, and school meals) and distributing State administrative funds to support program operations. To advance this objective, FNS plans to finalize rules implementing provisions of the Farm Security and Rural Investment Act of 2002 (P.L. 107-171) to simplify program administration, support work, and improve access to benefits in the Food Stamp Program. The Agency will also issue rules implementing provisions of the Child Nutrition and WIC Reauthorization Act of 2004 (P.L. 108-265) to ensure access to the Child Nutrition Programs for low-income children receiving Food Stamps through direct certification, and to establish automatic eligibility for homeless children.
Promote Healthier Eating Habits and Lifestyles. This objective represents FNS' efforts to improve nutrition knowledge and behavior through nutrition education and breastfeeding promotion, and to ensure that program benefits meet the appropriate nutrition standards to effectively improve nutrition for program participants. In support of this objective, FNS plans to propose a rule revising requirements that allow schools to substitute nutritionally-equivalent non-dairy beverages for fluid milk at the request of a recipient's parent. FNS will also propose changes to improve food packages in the WIC program to reflect current dietary guidance, based on recommendations made by an Institute of Medicine expert panel.
Improve Nutrition Assistance Program Management and Customer Service. This objective represents FNS' ongoing commitment to maximize the accuracy of benefits issued, maximize the efficiency and effectiveness of program operations, and minimize participant and vendor fraud. In support of this objective, FNS plans to finalize rules in the Food Stamp Program (FSP) to improve program operations and monitoring at the State and institution levels. For example, the proposed Food Stamp Program Disqualified Recipient Reporting and Computer Matching rule would require State agencies at certification and periodically thereafter to match persons in households applying for benefits against several databases to ensure prisoners, deceased, and other disqualified individuals are not receiving food stamp benefits. FNS will also publish rules implementing several changes to the Food Stamp Quality Control system, and related performance incentives for States, required by P. L. 107-171, and propose rules to correct and clarify provisions of the July 6, 2000, final regulation on recipient claims.
Food Safety and Inspection Service
Mission: The Food Safety and Inspection Service (FSIS) is responsible for ensuring that meat, poultry, and egg products in commerce are wholesome, not adulterated, and properly marked, labeled, and packaged.
Priorities: FSIS is committed to developing and issuing science-based regulations intended to ensure that meat, poultry, and egg products are wholesome and not adulterated or misbranded. FSIS continues to review its existing authorities and regulations to streamline excessively prescriptive regulations, to revise or remove regulations that are inconsistent with the Agency's hazard analysis and critical control point regulations, and to ensure that it can address emerging food safety challenges. FSIS' 2006 regulatory plan supports USDA's Strategic Goal 5, "Enhance Protection and Safety of the Nation's Agriculture and Food Supply," and the related objective to reduce the incidence of food borne illnesses related to meat, poultry, and egg products in the U.S.
Following are some of the Agency's recent and planned initiatives:
Expand the Use of Performance Standards: In February 2001, FSIS proposed a rule to establish food safety performance standards for all processed ready-to-eat (RTE) meat and poultry products and for partially heat-treated meat and poultry products that are not ready-to-eat. The proposal also contained provisions addressing post-lethality contamination of RTE products with Listeria monocytogenes. In June 2003, FSIS published an interim final rule requiring establishments to prevent L. monocytogenes contamination of RTE products. The Agency is evaluating the effectiveness of this interim rule, which in 2004 was the subject of a regulatory reform nomination to OMB. FSIS has carefully reviewed its economic analysis of the interim rule in response to this recommendation and is planning to adjust provisions of the rule to reduce the information collection burden on small businesses. FSIS also is planning further action with respect to other elements of the 2001 proposal, based on quantitative risk assessments of target pathogens in processed products.
FSIS plans to propose amending the poultry products inspection regulations by replacing, with a performance standard, the requirement for ready-to-cook poultry products to be chilled to 40(deg) F or below within certain time limits according to the weight of the dressed carcasses. Under the performance standard, poultry establishments would have to carry out slaughtering, dressing, and chilling operations in a manner that ensures no significant growth of pathogens, as demonstrated by control of the pathogens or indicator organisms. The existing time/temperature chilling regulations would remain available for use by establishments as a "safe harbor" for compliance with the new standard.
Bovine Spongiform Encephalopathy (BSE): In January 2004, FSIS published three interim final rules to prevent the agent of BSE from entering the human food supply. FSIS took this action in response to the confirmation of BSE in a cow in Washington State that had been imported from Canada. In addition, FSIS issued a Federal Register Notice in January 2004 that announced that the Agency would no longer pass and apply the mark of inspection to carcasses and parts of cattle selected for BSE testing by APHIS until the sample is determined to be negative. FSIS has been evaluating the comments received in response to the interim final rules to determine whether to implement additional measures to prevent human exposure to the BSE agent.
Expand the Use of Hazard Analysis and Critical Control Point (HACCP) Systems: FSIS also is planning to propose requirements for federally inspected egg product plants to develop and implement HACCP systems and sanitation standard operating procedures. The Agency will be proposing pathogen reduction performance standards for egg products. Further, the Agency will be proposing to remove requirements for FSIS approval of egg-product plant drawings, specifications, and equipment before their use, and to end the system for pre-marketing approval of labeling for egg products.
Improve Consumer Information: FSIS has proposed requirements for the nutrition labeling of ground or chopped meat and poultry products and single-ingredient products. This proposed rule would require nutrition labeling, on the label or at the point-of-purchase, for the major cuts of single-ingredient, raw products and would require nutrition information on the label of ground or chopped products. Completing this rulemaking would respond to a regulatory reform recommendation made to OMB in 2002.
FSIS proposed March 7, 2006, to amend the Federal meat and poultry product regulations to provide that the Agency would make available to individual consumers lists of the retail consignees of meat and poultry products that a federally inspected meat or poultry products establishment has voluntarily recalled. FSIS believes that this information will be of value to consumers and the industry in clarifying which products should be removed from commerce and form consumers' possession because the products may be adulterated or misbranded.
Small business implications: The great majority of businesses regulated by FSIS are small businesses. With the possible exception of the poultry chilling proposal, the regulations listed above substantially affect small businesses. FSIS recognizes the difficulties faced by many small and very small establishments in complying with necessary, science-based food safety requirements and in assuming the associated technical and financial burdens. FSIS attempts to reduce the burdens of its regulations on small business by providing alternative dates of compliance, furnishing detailed compliance guidance material, and conducting outreach programs to small and very small establishments.
In May 2006, FSIS announced an enhanced small business outreach program that will ensure critical training, access to food safety experts, and information resources that are available in a form that is uniform, easily comprehended, and consistent. The Agency will collaborate in this initiative with other USDA Agencies and cooperating State partners. For example, FSIS will make plant owners and operators aware of loan programs, available through USDA's Rural Business and Cooperative programs, to help them in upgrading their facilities. FSIS employees will be meeting proactively with small and very small plant operators to learn more about their specific needs and provide joint training sessions for small and very small plants and FSIS employees.
Animal and Plant Health Inspection Service
Mission: A major part of the mission of the Animal and Plant Health Inspection Service (APHIS) is to protect the health and value of American agricultural and natural resources. APHIS conducts programs to prevent the introduction of exotic pests and diseases into the United States and conducts surveillance, monitoring, control, and eradication programs for pests and diseases in this country. These activities enhance agricultural productivity and competitiveness and contribute to the national economy and the public health. APHIS also conducts programs to ensure the humane handling, care, treatment, and transportation of animals under the Animal Welfare Act.
Priorities: APHIS is continuing work that will result in a revision of its regulations concerning the introduction of organisms and products altered or produced through genetic engineering. This work consists of two parts. The first is to amend the existing plant-related regulations to reflect new consolidated authorities under the Plant Protection Act and to address new technological trends. The second is to develop a regulatory framework for transgenic animals. These regulatory changes are needed to address risks to plant and animal health. APHIS also plans to complete rulemaking to streamline the process for approving new fruits and vegetables for importation, and to propose changes to the regulations for importing nursery stock that will enhance our ability to protect plant health. The Agency is also continuing to work on amending its regulations concerning bovine spongiform encephalopathy (BSE) to provide for the importation of certain animals and products that present low risk.
With regard to animal welfare, APHIS plans to propose specific standards for the humane handling, care, treatment, and transportation of birds covered under the Animal Welfare Act.
APHIS' 2006 regulatory plan supports USDA's Strategic Goal 4, "Enhance Protection and Safety of the Nation's Agriculture and Food Supply, " and the related objective to reduce the number and severity of agricultural pest and disease outbreaks.
Agricultural Marketing Service
Mission: The Agricultural Marketing Service (AMS) provides marketing services to producers, manufacturers, distributors, importers, exporters, and consumers of food products. The AMS also manages the Government's food purchases, supervises food quality grading, maintains food quality standards, and supervises the Federal research and promotion programs.
Priorities: AMS' priorities are to support Strategic Goal 2, "Enhance the Competitiveness and Sustainability of Rural and Farm Economies," by expanding domestic market opportunities for agricultural producers. In response to concerns raised by Fruit and Vegetable industry members that produce sellers may lose their status as trust creditors when using electronic invoicing systems, the Agricultural Marketing Service issued an advance notice of proposed rulemaking (ANPR) under the Perishable Agricultural Commodities Act (PACA) soliciting comments from the public, including buyers and sellers of fruits and vegetables. The ANPR was published on January 30, 2006, and the comment period ended March 16, 2006. The agency expects to proceed to rulemaking in the near future. The PACA established a code of fair trading practices in the marketing of fresh and frozen fruits and vegetables in interstate and foreign commerce. The law imposes a statutory trust on the assets, including inventory and receivables, of a licensee or firms operating subject to the PACA. The PACA provides that PACA licensees may preserve their trust rights by including specified language on billing or invoicing statements. In 1997, the PACA regulations were amended to state that electronic transmissions are considered "ordinary and usual billing and invoicing statements." A number of produce sellers have voiced concerns that their PACA trust rights may not be preserved when invoicing electronically. Additional concerns have been expressed that notice to sellers using the alternate method of trust notice (i.e., separate trust notice letter) is not being accepted by some buyers who require their suppliers to invoice electronically. Others in the industry have expressed concern about being charged a fee by the buyer to accept the notice to preserve their trust benefits if they send a paper invoice or separate trust notice.
The Agricultural Marketing Service (AMS) administers the National Organic Program (NOP) which is authorized by the Organic Food Production Act of 1990 (7 U.S.C. 6510 et seq.). Under the NOP, AMS establishes national standards for the production and handling of organically produced agricultural products. Since the implementation of the NOP, some members of the public have advocated for a more explicit regulatory standard on the relationship between livestock, particularly dairy animals, and grazing land. Appropriate access to pasture has been a topic of discussion in the organic community for many years, including by the National Organic Standards Board (NOSB). For these reasons, AMS published an Advance Notice of Proposed Rulemaking (ANPR) on April 13, 2006, to give the public the opportunity to comment on key issues that have been raised during previous rulemakings and National Organic Standards Board deliberations regarding access to pasture and temporary confinement based on an animal's stage of production. The comment period closed on June 12. AMS intends to publish a proposed rule this fall.
Farm Service Agency
Mission: The mission of the Farm Service Agency is to stabilize farm income, help farmers conserve land and water resources, provide credit to new or disadvantaged farmers and ranchers, and help farm operations recover from the effects of disaster.
Priorities: FSA's Regulatory Plan supports USDA Strategic Goal 2, "Enhance the Competitiveness and Sustainability of Rural and Farm Economies," and Strategic Goal 6, "Protect and Enhance the Nation's Natural Resource Base and Environment." FSA's immediate priority is to finish implementation of the disaster assistance programs required by the 2006 Emergency Appropriations Act (Pub. L. 109-148), and the Emergency Supplemental Appropriations Act for Defense, the Global War on Terror, and Hurricane Recovery of 2006. The disaster programs provide assistance to agricultural producers in areas that were affected by the unusual number and severity of hurricanes in 2005.
A primary mission of FSA is to administer the commodity and conservation programs provided by the Farm Security and Rural Investment Act of 2002 (2002 Act). Generally, these programs are authorized by the 2002 Act with respect to the 2002 through 2007 crop years. Accordingly, FSA envisions no major changes in the last year of the regulations used to administer these programs. However. the Agency does expect major initiatives for a new Farm Bill to be proposed by this Administration for the 2008 and subsequent crop years. FSA will develop and issue the necessary regulations and make program funds available to eligible clientele in as timely a manner as possible. As these and future changes required by Administration initiatives and new legislation are made, the Agency's focus will be to implement the changes in such a way as to provide benefits while minimizing program complexity and regulatory burden for program participants. Opportunities will be taken to clarify, simplify, and reduce confusion whenever possible. In addition, the Agency will continue to streamline its farm loan programs operated under the Consolidated Farm and Rural Development Act, as amended (Pub. L. 87-128).
The Agency plans to publish a final rule to adopt new procedures to be used by the Commodity Credit Corporation (CCC) in the evaluation of bids in connection with the procurement of commodities for foreign donation under various food aid authorities. CCC is amending the existing regulations to provide for the simultaneous review of commodity and ocean freight offers when evaluating lowest-landed cost options in connection with the procurement of commodities for foreign donation. Under the revised bid process, CCC can better control shipping costs, take advantage of efficiencies in load consolidation and ensure a more competitive commodity procurement process. Program savings should result from the ability to better position procured commodities at domestic ports based on actual shipping cost comparisons. Program savings are also expected as a result of greater head-to-head competition for program freight among U.S.-flagged carriers. These savings should allow for additional food aid quantities to move to donation countries. This rule will enhance bidding opportunities for potential vendors while allowing CCC to more efficiently acquire commodities.
Forest Service
Mission: The mission of the Forest Service is to sustain the health, productivity, and diversity of the Nation's forests and rangelands to meet the needs of present and future generations. This includes protecting and managing National Forest System lands; providing technical and financial assistance to States, communities, and private forest landowners; and developing and providing scientific and technical assistance and scientific exchanges in support of international forest and range conservation.
Priorities: Forest Service's regulatory plan supports USDA Strategic Goal 6, "Protect and Enhance the Nation's Natural Resource Base and Environment." The agency's priorities for fall 2006 include publishing a proposed regulation to revise 36 CFR Part 220 regarding the agency's implementation of the National Environmental Policy Act (NEPA). The proposed regulation would move existing agency NEPA procedures required by 40 CFR 1507.3 from the internal Forest Service Handbook 1909.15 to the Code of Federal Regulations. Codifying agency NEPA procedures would make it easier for the Forest Service to revise internal agency guidance.
The agency plans to publish two final directives to Forest Service Environmental Policy and Procedures Handbook 1909.15, chapter 30. The existing agency NEPA procedures would be updated to allow the use of a categorical exclusion when a land management plan is not making decisions that will result in significant impacts on the human environment and where no extraordinary circumstances exist that would prohibit the use of the categorical exclusion. Notice of the proposed categorical exclusion and request for comment was published January 5, 2005 (70 FR 3).
The second final directive to Forest Service Environmental Policy and Procedures Handbook 1909.15, chapter 30 applies to issuance of Surface Use Plans of Operation for exploration or development of an oil and gas lease. The final directive will allow for expedited review of permits to accelerate the completion of projects while maintaining safety, public health and environmental protection. Notice of the proposed directive and request for comment was published December 13, 2005 (70 FR 238).
Forest Service also plans to publish a final directive to Forest Service National Forest System Land Management Planning Handbook 1909.12, chapter 70, regarding wilderness evaluation. The final planning rule was published on January 5, 2005 (70 FR 1023), and an interim directive to chapter 70 regarding wilderness evaluation was published on March 23, 2005 (70 FR 14637). The final directive updates guidance for the identification, inventory, evaluation, and recommendation of areas within National Forest System lands that satisfy the definition of wilderness found in section 2(c) of the 1964 Wilderness Act.
Natural Resources Conservation Service
Mission: The Natural Resources Conservation Service (NRCS) mission is to provide leadership in a partnership effort to help people conserve, maintain, and improve our natural resources and environment.
Priorities: NRCS' priority for FY 2007 will be to make final adjustments to rules related to the conservation provisions of the Farm Security and Rural Investment Act of 2002 (the 2002 Farm Bill), in response to public comments and experience gained from the implementation of the programs. These clarifications and modifications will ensure efficient and responsive delivery of conservation programs to landowners and land users and help further the agency mission to help people conserve, maintain, and improve our natural resources and the environment. NRCS' 2006 regulatory plan supports USDA's Strategic Goal 6, "Protect and Enhance the Nation's Natural Resource Base and Environment," and the related objectives to protect and conserve natural resources that form the foundation for healthy lands.
NRCS remains committed to compliance with the Government Paperwork Elimination Act and the Freedom to E-File Act, which require Government agencies in general and NRCS in particular to provide the public the option of submitting information or transacting business electronically to the maximum extent possible. NRCS is designing its program forms to allow the public to conduct business with NRCS electronically.
The NRCS plans to publish the following rules during FY 2007:
Interim Final Rule for the Environmental Quality Incentives Programs (EQIP): This revision to the final rule is to: 1) consider public comments about which resource concerns should be given national priority in the implementation of EQIP in future years; 2) clarify the cost-share rates (actual versus average cost); and 3) expansion of conservation practice definitions with varying payment incentives for a single conservation practice applied at different levels to achieve additional environmental benefits.
The rulemaking for EQIP consists of making minor changes to existing rules.
Final Rule for the Farmland and Ranchland Protection Program (FRPP): This action will modify the FRPP final rule to clarify the amount of construction and forested acres permitted on FRPP easements and identify the procedure in which the United States would invoke its contingent rights.
Interim Final Rule for the Confidentiality of Conservation Program Information: If a producer believed that the proprietary information about their land and the agricultural operation provided to NRCS for participation in a conservation program would become "public" and thus subject to disclosure requirements under the Freedom of Information Act, the producer might not wish to participate in the voluntary conservation programs. Therefore, NRCS action to promulgate a rule is to ensure that NRCS or anyone acting on its behalf does not unlawfully release protected information.
Final Rule for the Healthy Forest Reserve Program (HFRP): This action implements HFRP — a voluntary program to restore and enhance forest ecosystems that promote the recovery of threatened and endangered species, improve biodiversity, and enhance carbon sequestration. Land can be enrolled through a 10-year cost-share agreement and an easement contract.