Small Business Timber Sale Set-Aside Program; Notice and Comment Opportunity on Recomputation of Shares

DEPARTMENT OF AGRICULTURE

Small Business Timber Sale Set-Aside Program; Notice and Comment

Opportunity on Recomputation of Shares

AGENCY: Forest Service, USDA.

ACTION: Notice of availability.

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SUMMARY: The Forest Service gives notice that it has revised its

internal administrative direction in Forest Service Handbook 2409.18

regarding recomputation of shares under the Small Business Timber Sale

Set-Aside Program to provide a procedure for timber industry review and

comment prior to a final decision on recomputed shares. This prior

notice and comment opportunity is intended to respond to industry's

concerns about losing the privilege of administrative appeal of

recomputation decisions when agency appeal regulations at 36 CFR parts

215, 217, and 251 were revised in response to statutory direction in

1992. The new procedures have been issued as Interim Directive Number

2409.18-96-1.

EFFECTIVE DATE: The Interim Directive was effective February 9, 1996.

ADDRESSES: Single copies of the Interim Directive may be obtained by

calling or writing local Forest Service offices as listed in 36 CFR

200.4, by telephoning the person listed under FOR FURTHER INFORMATION

CONTACT or by writing Director, Timber Management, (3NW Aud. Bldg.),

USDA Forest Service, P.O. Box 96090, Washington, DC 20090-6090.

FOR FURTHER INFORMATION CONTACT: Rod Sallee, Timber Management Staff,

(202) 205-1766.

SUPPLEMENTARY INFORMATION:

Background

The Forest Service Small Business Timber Sale Set-Aside Program was

adopted July 26, 1990 (55 FR 30485). The agency administers the program

in cooperation with the Small Business Administration (SBA) under the

authorities of The Small Business Act, The National Forest Management

Act of 1976, and SBA's regulations at Part 121 of Title 13 of the Code

of Federal Regulations (13 CFR part 121). The program is designed to

ensure that small business timber purchasers have the opportunity to

purchase a fair proportion of National Forest System timber offered for

sale.

Direction to guide administration of the Set-Aside Program is

issued in Forest Service Manual (FSM) Chapter 2430 and Chapter 90 of

Forest Service Timber Sale Preparation Handbook (FSH 2409.18). The

Program requires the Forest Service to recalculate the shares of timber

sales to be set-aside for small business, based on the actual history

of harvest and/or purchase by small business every 5 years. Shares also

must be recomputed, if there is a change in manufacturing capability,

if purchaser size class changes, or if certain purchasers discontinue

operations.

Prior to 1992, there was opportunity for administrative appeal of

decisions associated with recomputation of new shares. In 1992, the

agency adopted new administrative appeal procedures at 36 CFR part 215

in response to new statutory direction. Under the rules adopted at 36

CFR part 215, the Forest Service appeal process no longer covers

decisions related to the recomputation of shares under the Small

Business Set-Aside Program, because these decisions are not subject to

National Environmental Policy Act regulations or procedures. These

decisions also are not conditions of special use authorizations

appealable under 36 CFR part 251, subpart C.

The small business share decision is based on technical information

from the harvest and/or sales history of defined market areas and other

information. Rather than providing a separate appeal procedure that

allows challenge of decisions, the agency believes the decisionmaking

process will be improved by allowing purchasers the opportunity to

review and comment on proposed changes in shares and by allowing the

decisionmaker to consider these comments in making the final decision.

Accordingly, at Section 91.19 of FSH 2409.18, the agency has

established procedures for giving notice to the affected timber

purchasers in the area, for obtaining and considering comment, and for

documenting the comments received and the agency's response as part of

the final decision. The Interim Directive establishing these procedures

as issued to Forest Service employees is set out at the end of this

notice.

Dated: February 15, 1996.

Gray F. Reynolds,

Deputy Chief for National Forest System.

!!ID 2409.18-96-1

Expiration Date: 8/9/97

Forest Service Handbook

Washington, D.C.

FSH 2409.18--Timber Sale Preparation Handbook

Interim Directive: 2409.18-96-1.

Effective Date: February 9, 1996.

Expiration Date: August 9, 1997.

Chapter: 90--Programs With Small Business Administration.

Posting Notice: Last ID was 2409.18-95-2 to chapter 40.

This interim directive (ID) establishes new procedures at

section 91.19 for giving timber purchasers notice and opportunity to

comment on proposed share recomputations for the timber sale set-

aside program. With adoption of the administrative appeal rules at

36 CFR part 215, share recomputation decisions were no longer

appealable. These procedures in section 91.19 reinstate an

opportunity for purchaser involvement in the recomputation decision.

Sterling J. Wilcox,

Acting Deputy Chief.

91.19--Establishing New Small Business Shares. Request review of

all scheduled,

[[Page 7469]]

periodic market share recomputations as well as any recomputation

arising from a determination of structural change from the Small

Business Administration (SBA) Regional Representative. If there are

any disagreements between the SBA representative and the Forest

Supervisor, refer the matter to the Regional Forester for resolution

before giving notice of the proposed share recomputation to timber

purchasers.

Following the review by the Small Business Administration, the

responsible line officer shall take the following actions:

1. Give direct notice of the proposed new share to all timber

purchasers on bidders' lists within the affected area, and invite

their comment.

a. Advise the timber purchasers of the information used in

recomputing shares and invite comment on the information used by the

agency or on information that purchasers believe should have been

considered. Also advise timber purchasers of the location where they

can inspect the information used.

b. All comments postmarked within 30 calendar days following the

date of mailing must be considered in arriving at the final share

decision.

2. Following the 30-day review and comment period, consider the

comments, make adjustments as may be appropriate, and prepare a

letter or other document setting forth the final decision.

3. Give notice of the final decision to all purchasers on the

bidders' lists within the affected area. Be sure to include a

statement that the decision is not subject to administrative appeal.

Make any new share effective at the beginning of the first 6-month

analysis period following the decision to implement it.

4. In the notice of the final decision or an attachment to it,

summarize the comments received, identify the number of persons who

or entities that provided comments, and provide the deciding

official's response to them.

[FR Doc. 96-4495 Filed 2-27-96; 8:45 am]

BILLING CODE 3410-11-M