Karnal Bunt; Movement From Regulated Areas

DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection Service

7 CFR Parts 301 and 319

[Docket No. 96-016-22]

RIN 0579-AA83

Karnal Bunt; Movement From Regulated Areas

AGENCY: Animal and Plant Health Inspection Service, USDA.

ACTION: Proposed rule.

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SUMMARY: We are proposing to amend the Karnal bunt regulations to

allow, under certain conditions, commercial lots of seed to move from

restricted areas for seed. We also propose to amend the testing

requirements for regulated articles other than seed, remove certain

articles from the list of articles regulated because of Karnal bunt,

clarify the terms ``used mechanized harvesting equipment'' and ``used

seed conditioning equipment,'' and clarify requirements for soil

movement with vegetables. These changes would relieve restrictions on

the movement of articles from areas regulated because of Karnal bunt.

We also propose to amend the requirements for treating millfeed and

soil, and remove the methyl bromide treatment alternative for

decorative articles. These changes appear necessary to help prevent the

spread of Karnal bunt. We also propose to amend the definition of

surveillance areas to more clearly distinguish between surveillance

areas and restricted areas. In addition, we are proposing to amend the

regulations governing the importation of wheat into the United States

to make the definition of the term ``Karnal bunt'' consistent with the

definition of that term in the Karnal bunt regulations.

DATES: Consideration will be given only to comments received on or

before March 30, 1998.

ADDRESSES: Please send an original and three copies of your comments to

Docket No. 96-016-22, Regulatory Analysis and Development, PPD, APHIS,

suite 3C03, 4700 River Road Unit 118, Riverdale, MD 20737-1238. Please

state that your comments refer to Docket No. 96-016-22. Comments

received may be inspected at USDA, room 1141, South Building, 14th

Street and Independence Avenue SW., Washington, DC, between 8 a.m. and

4:30 p.m., Monday through Friday, except holidays. Persons wishing to

inspect comments are requested to call ahead on (202) 690-2817 to

facilitate entry into the comment reading room.

FOR FURTHER INFORMATION CONTACT: Mr. Mike Stefan, Operations Officer,

Domestic and Emergency Operations, PPQ, APHIS, 4700 River Road Unit

134, Riverdale, MD 20737-1236, (301) 734-8247.

SUPPLEMENTARY INFORMATION:

Background

Karnal bunt is a fungal disease of wheat (Triticum aestivum), durum

wheat (Triticum durum), and triticale (Triticum aestivum X Secale

cereale), a hybrid of wheat and rye. Karnal bunt is caused by the smut

fungus Tilletia indica (Mitra) Mundkur and is spread by spores,

primarily through the movement of infected seed. In the absence of

measures taken by the U.S. Department of Agriculture (USDA) to prevent

its spread, the establishment of Karnal bunt in the United States could

have significant consequences with regard to the export of wheat to

international markets. The regulations regarding Karnal bunt in the

United States are set forth in 7 CFR 301.89-1 through 301.89-14.

We are proposing to amend the Karnal bunt regulations to allow,

under certain conditions, commercial lots of seed to move from

restricted areas for seed; amend the testing requirements for regulated

articles other than seed; remove certain articles from the list of

articles regulated because of Karnal bunt; clarify the terms ``used

mechanized harvesting equipment'' and ``used seed conditioning

equipment''; clarify requirements for soil movement with vegetables;

amend the requirements for treating millfeed and soil; remove the

methyl bromide treatment alternative for decorative articles; and amend

the definition of surveillance areas.

Movement of Seed From Restricted Areas for Seed

Under the current Karnal bunt regulations, areas regulated because

of Karnal bunt are divided into three categories: restricted areas for

regulated articles other than seed, surveillance areas, and restricted

areas for seed. Restricted areas for regulated articles other than seed

are individual fields that were (1) found during survey to contain a

bunted wheat kernel, (2) planted with seed from a lot that was found to

contain a bunted wheat kernel, or (3) found during survey to contain

spores consistent with Karal bunt and determined to be associated with

grain at a handling facility containing a bunted wheat kernal. No field

currently identified as a restricted area for regulated articles other

than seed are currently planted with Karnal bunt host crops (wheat,

durum wheat, and triticale), and no host crops may be planted in these

fields. Surrounding these fields are the surveillance areas. The

restricted areas for seed encompass the largest area, covering and

extending beyond the other two categories of regulated areas.

The movement of commercial lots of seed from a restricted area for

seed is prohibited; seed in smaller lots for germplasm or research

purposes may be moved from a restricted area for seed if treated in

accordance with the regulations at Sec. 301.89-13(e).

Those portions of a restricted area for seed that extend beyond the

surveillance areas do not contain any fields where a bunted wheat

kernal has been found or any fields found to contain spores consistent

with Karnal bunt and associated with grain at a handling facility

containing a bunted wheat kernal. We propose to allow commercial lots

of seed to move from a restricted area for seed if: (1) The field or

fields where the seed was grown are not part of a restricted area for

regulated articles other than seed or a surveillance area; (2) the seed

tests negative for Karnal bunt (spores and bunted kernels); (3) the

most recent previous Karnal bunt host crop grown in the field or fields

where the seed intended for movement was grown also tested negative for

Karnal bunt (spores and bunted kernels); and (4) the seed intended for

movement is treated in accordance with Sec. 301.89-13(e), currently

designated as the treatment for

[[Page 4199]]

seed used as germplasm or for research purposes.

We would not allow seed to move from a restricted area for seed if

the field where the seed was grown is also a part of a restricted area

for articles other than seed or a surveillance area because of the

higher risk of the presence of Karnal bunt in such areas. As noted

above, the regulations do not allow for the planting of host crops in a

restricted area for regulated articles other than seed. Therefore, seed

cannot be grown in those areas. However, it is possible that a bunted

kernel may be detected in a field that is not currently designated a

restricted area for regulated articles other than seed while that field

is planted with a Karnal bunt host crop. In that case, when the bunted

kernel is detected, the field would immediately be designated a

restricted area for regulated articles other than seed, and the crop

would not be eligible for certified movement as a commercial lot of

seed. Unlike restricted areas for regulated articles other than seed,

surveillance areas may be planted with host crops, in accordance with

Sec. 301.89-4, and, therefore, seed could be grown in surveillance

areas. Yet because of a surveillance area's proximity to a restricted

area for regulated articles other than seed (i.e., a field associated

with bunted kernels), we would not allow commercial lots of seed from

surveillance areas to move out of the regulated area.

We would require that, prior to movement from the restricted area

for seed, the seed test negative for Karnal bunt (spores and bunted

kernels) to help reduce the risk of the spread of the disease to

noninfected areas of the United States. Because of its intended use as

seed for planting, seed presents a higher risk than grain of spreading

Karnal bunt. Therefore, in accordance with Sec. 301.89-4(b), we would

require that seed test negative for both spores and bunted kernels

before moving from the restricted area for seed.

Also, the most recent previous Karnal bunt host crop grown in the

field or fields where the seed intended for movement was grown must

have tested negative for Karnal bunt (spores and bunted kernels). This

requirement would help verify the production area's long-term freedom

from Karnal bunt. Because crops are rotated, a field will likely not be

planted with Karnal bunt host crops in consecutive years. Negative test

results for fields surveyed for Karnal bunt during the 1995-1996 and

the 1996-1997 growing seasons would allow the next applicable Karnal

bunt host crop planted in those fields to meet this eligibility

requirement. If a field has not yet been surveyed, that field would

have to be surveyed while planted with a host crop and found free of

Karnal bunt (spores and bunted kernels) in order for a subsequent seed

crop, during a future growing season, to meet this eligibility

requirement. During each crop season, we would survey fields in the

restricted area for seed that are planted with Karnal bunt host crops

intended for use as seed and survey additional fields in the area. The

data that we collect in these surveys will provide information over a

period of years and through a variety of environmental conditions to

confirm an area's continued freedom from the disease.

Lastly, we would require that, prior to movement from the

restricted area for seed, the seed be treated in accordance with the

treatment currently authorized for seed for use as germplasm or for

research purposes (see Sec. 301.89-13(e)). This requirement would help

reduce the risk of the spread of Karnal bunt to noninfected areas of

the United States.

Testing Requirements for Regulated Articles Other Than Seed

Currently, to be eligible for certified movement, regulated

articles other than seed must be tested for both Karnal bunt spores and

bunted kernels prior to movement from the regulated area (see

Sec. 301.89-6(b) and (d)). However, because of its intended uses (for

example, processing for millfeed or animal feed), grain presents a much

lower risk of spreading Karnal bunt than seed. We therefore propose to

allow the certified movement of grain other than for seed if the grain

is tested prior to movement from the field or before being commingled

with other grains and found free of bunted kernels only, rather than

Karnal bunt spores and bunted kernels. We believe that this testing of

grain for bunted kernels provides an appropriate level of protection

against the spread of Karnal bunt by grain.

Removal of Regulated Articles

Certain articles present a significant risk of spreading Karnal

bunt if the articles are moved from regulated areas without

restriction. We call these articles ``regulated articles.'' When Karnal

bunt was first detected in the United States, we established an

extensive list of regulated articles. Based on our experience with the

control of other plant diseases, we included, as a precautionary

measure, many articles on the list of regulated articles that we

believed could present a significant risk of spreading Karnal bunt.

Subsequently, a further assessment of the risk involved in moving

regulated articles was performed. This assessment considered factors

such as additional information about Karnal bunt and the way in which

it spreads, the size of regulated areas, the movement of regulated

articles within and outside of regulated areas, and the normal business

practices involved in the handling of regulated articles. As a result

of this assessment, we are proposing to amend the list of regulated

articles by removing used bags, sacks, and containers; used farm tools;

used mechanized cultivating equipment; and used soil moving equipment

from the list of regulated articles because these items present a

negligible risk of spreading Karnal bunt. Accordingly, as these

articles would no longer be regulated, we are also proposing to revise

paragraph (a) of Sec. 301.89-12 to remove the requirement that these

articles be treated in accordance with Sec. 301.89-13; to revise

paragraph (a) of Sec. 301.89-13, which describes treatments for

mechanized farm equipment (which includes mechanized cultivating

equipment), farm tools, and soil moving equipment; and to remove

paragraph (f) of Sec. 301.89-13, which describes treatments for bags,

sacks, and containers. As a result of these changes to the regulations,

used bags, sacks, containers, and used farm tools, mechanized

cultivating equipment, and soil moving equipment would no longer have

to be treated before being moved from a regulated area. These actions

would relieve an unnecessary regulatory burden on the wheat industry in

areas regulated because of Karnal bunt while continuing to protect

against the spread of Karnal bunt to noninfected areas of the United

States.

Used Mechanized Harvesting Equipment and Used Seed Conditioning

Equipment

When we first established the regulations to prevent the spread of

Karnal bunt in the United States, we listed as regulated articles

``used mechanized harvesting equipment'' and ``used seed conditioning

equipment'' because, when this type of equipment is used in a regulated

area in the production of Karnal bunt host crops, the equipment

presents a risk of spreading Karnal bunt if moved outside the regulated

area without restriction. However, in the regulations, we did not

specify what was meant by the word ``used.'' Therefore, any mechanized

harvesting equipment or seed conditioning equipment used in the area

regulated for Karnal bunt, whether or not that equipment was used in

association with Karnal bunt host crops, was subject to the

requirements of the

[[Page 4200]]

regulations, including the treatment requirements in Sec. 301.89-13.

Within the areas regulated because of Karnal bunt, there is no

reason to regulate mechanized harvesting equipment and seed

conditioning equipment if the equipment is not used in the production

of Karnal bunt host grains. Therefore, we are proposing to amend

Sec. 301.89-2 (l) and (m) to clarify that only mechanized harvesting

equipment and seed conditioning equipment that were used in the

production of wheat, durum wheat, or triticale are considered regulated

articles. Accordingly, we would also revise paragraph (a) of

Sec. 301.89-12 to clarify that only mechanized harvesting equipment and

seed conditioning equipment that were used in the production of wheat,

durum wheat, or triticale are required to be treated in accordance with

Sec. 301.89-13 prior to movement from the regulated area. (A regulated

area includes all restricted areas for seed and all restricted and

surveillance areas for regulated articles other than seed.) This action

would relieve an unnecessary regulatory burden on producers in Karnal

bunt regulated areas.

Soil Movement

We are also proposing to clarify the requirements for soil movement

with vegetables, located at Sec. 301.89-12(b), because there has been

confusion concerning the requirements for soil attached to root crops

and other commodities moving from areas regulated because of Karnal

bunt. We have stated in previous documents that we believe that there

is a risk of spreading Karnal bunt through the movement of soil.

However, we recognize this risk in most cases is negligible based on

(1) survey data, (2) intended use of the produce for consumption, and

(3) the cleaning and handling of root crops and other commodities in

normal business practice. Consequently, in this proposed rule, we

propose to specify that soil attached to root crops and other

commodities must be removed only if the crops or commodities were grown

in fields that are in restricted areas for regulated articles other

than seed because these are the fields that have been determined to be

directly associated with bunted kernels. We believe that these fields

are high risk for spreading Karnal bunt and warrant the soil removal

restrictions. We believe that root crops and commodities from fields in

proximity (i.e., restricted areas for seed) are lower risk, and that

the intended use of the products (consumption) and normal business

practices (cleaning and grading of the crops) are sufficient to

mitigate the risk of spreading Karnal bunt to other areas of the United

States. This action would relieve an unnecessary regulatory burden on

growers of vegetables and fruits within regulated areas.

Millfeed Treatment

We are proposing to amend the requirements for treatment of

millfeed. In the October 4, 1996, final rule, we established special

requirements for the treatment and handling of millfeed. Specifically,

we required that millfeed be treated with a moist heat treatment of 170

deg.F for at least 1 minute if the millfeed resulted from the milling

of grain from either: (1) Fields in which preharvest samples test

positive for Karnal bunt during the 1996-1997 crop season; or (2)

fields located in a restricted area. During the 1996 harvest season, we

allowed a destination State willing to accept appropriate monitoring

responsibilities to determine the appropriate treatment and handling of

millfeed based on the intended use of the millfeed within the

destination State.

Because of changes to the description of ``restricted area'' made

in the May 1, 1997, interim rule, millfeed must only be treated if it

is produced from grain grown in a restricted area. However, under the

May 1, 1997, interim rule, individual fields that are in restricted

areas may not be planted with wheat, durum wheat, or triticale.

Therefore, no millfeed is produced from grain grown in fields in

restricted areas, and consequently, no millfeed currently requires

treatment under the regulations. However, we believe that millfeed, if

it results from the milling of grain that tests positive for Karnal

bunt, carries a risk of spreading Karnal bunt. Therefore, we are

proposing to amend Sec. 301.89-13(c) to require that millfeed produced

from grain that tests positive for Karnal bunt be treated with a moist

heat treatment of 170 deg.F for at least 1 minute. This action will

help prevent the spread of Karnal bunt into noninfected areas of the

United States.

Methyl Bromide Treatment

The regulations at Sec. 301.89-13(b) allow, among other things,

straw/stalks/seed heads for decorative purposes to move from a

regulated area if they are treated with methyl bromide. Straw/stalks/

seed heads may move without treatment if they have been processed or

manufactured prior to movement and are for use indoors. We are

proposing to remove the methyl bromide treatment for straw/stalks/seed

heads for decorative purposes. Results of recently conducted research

indicate that methyl bromide is not effective in devitalizing

teliospores of Tilletia indica under dry conditions. Wetting the straw/

stalks/seed heads is not practical because the articles would be

damaged. Straw/stalks/seed heads for decorative purposes would still be

eligible for movement, if processed or manufactured prior to movement

and intended for use indoors, or if moved under limited permit for

specified handling, utilization, or processing, under the provisions of

Sec. 301.89-6. This action would remove an ineffectual treatment method

from the regulations.

Section 301.89-13(b) also provides that soil may be moved from a

regulated area after treatment with methyl bromide. Because we have

established that methyl bromide does not deactivate teliospores of

Tilletia indica under dry conditions, we are proposing to add a

moisture condition to the treatment of soil. Based on research, we are

proposing to require that soil be wetted with water, to a depth of 1

inch, just prior to methyl bromide treatment. The water may be added by

irrigation or rain. This action would help prevent the spread of Karnal

bunt into noninfected areas of the United States.

Definition of Surveillance Areas

We are proposing to amend the description of surveillance area at

Sec. 301.89-3(e)(4) to clarify that a surveillance area is an area

where Karnal bunt is not known to occur but where, for various reasons,

intensive surveys are necessary. This action would help differentiate

between the status of a restricted area for regulated articles other

than seed and the status of a surveillance area.

Definition of Karnal Bunt

The regulations at 7 CFR 319.59 through 319.59-2 govern the

importation of wheat into the United States to prevent the introduction

of foreign wheat diseases, such as flag smut and Karnal bunt. We are

proposing to revise the definition of ``Karnal bunt'' at Sec. 319.59-1

to make it consistent with the definition of Karnal bunt in

Sec. 301.89-1. The new definition of Karnal bunt at Sec. 319.59-1 would

read ``A plant disease caused by the fungus Tilletia indica (Mitra)

Mundkur.''

Executive Order 12866 and Regulatory Flexibility Act

This proposed rule has been reviewed under Executive Order 12866.

The rule has been determined to be economically significant for the

purposes of Executive Order 12866 and, therefore, has been

[[Page 4201]]

reviewed by the Office of Management and Budget.

The Karnal bunt regulations were established under the Plant

Quarantine Act (7 U.S.C. 151-165 and 167) and the Federal Plant Pest

Act (7 U.S.C. 150aa-150jj), which authorize the Secretary of

Agriculture to take measures necessary to prevent the spread of plant

pests, including diseases, that are new to, or not widely prevalent in,

the United States.

We are proposing to amend the Karnal bunt regulations to allow,

under certain conditions, commercial lots of seed to move out of a

restricted area for seed and to amend the testing requirements for

regulated articles other than seed. We also propose to remove certain

articles from the list of articles regulated because of Karnal bunt,

clarify the terms ``used mechanized harvesting equipment'' and ``used

seed conditioning equipment,'' and clarify requirements for soil

movement with vegetables. These changes would relieve restrictions on

the movement of articles from areas regulated because of Karnal bunt.

We also propose to amend the requirements for treating millfeed and

soil, and remove the methyl bromide treatment alternative for

decorative articles.

The proposed change to allow, under certain conditions, commercial

lots of seed to move out of a restricted area for seed would benefit

regulated growers of wheat seed and other affected entities. For the

first time since the regulated area was established, commercial lots of

wheat seed would be eligible to move out of the regulated area, if,

among other things, the seed was grown in a restricted area for seed

that is not also part of a restricted area for regulated articles other

than seed or a surveillance area. Those regulated areas that are

restricted areas for seed, but that are not also part of a restricted

area for regulated articles other than seed or a surveillance area,

amount to an estimated 727,335 acres of regulated land in four States

(Arizona, California, New Mexico, and Texas). These 727,335 acres

represent 75 percent of the combined regulated area in those four

States. The proposed change would, therefore, open up a substantial

volume of regulated acreage to export sales of wheat seed. The

estimated current regulated acreage, by State and regulatory

designation, is as follows:

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Arizona California New Mexico Texas Total

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Restricted area for seed....................... 797,000 100,000 58,650 \1\ 20,469 976,119

Restricted area for regulated articles other

than seed..................................... 6,162 3,113 3,990 1,519 14,784

Surveillance area.............................. 135,000 84,000 0 15,000 234,000

Portion of restricted area for seed that would

be eligible to grow wheat seed for movement in

commercial lots from the regulated area....... 655,838 12,887 54,660 3,950 727,335

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\1\ For El Paso, restricted area for seed includes only acreage for the plowdown fields.

The opportunity for export sales of seed should have a positive

impact on seed planting in the regulated area. The magnitude of that

impact is difficult to measure, however, because year-to-year changes

in seed planting is a function of many factors, including factors not

related to the regulatory environment (e.g., prices). The impact of

this proposal would likely be most noticeable 1 to 2 years after the

effective date of the rule; by that time, growers would have had the

chance to adjust planting schedules to take advantage of the amended

restrictions and would have had the opportunity to satisfy another of

the proposal's requirements, that is, that the most recent previous

Karnal bunt host crop grown in the field must have tested negative for

Karnal bunt (spores and bunted kernels).

Another of the proposal's requirements, that seed be treated prior

to movement, may limit the amount of seed that can be moved in the

short term and may also discourage some growers from planting seed.

Under the proposal, in addition to fungicide treatments, commercial

lots of seed would have to be treated with sodium hyperchloride

(chlorine) as currently designated for the treatment of seed used for

germplasm or for research purposes. Because of the corrosive nature of

chlorine, stainless steel vats or containers may need to be installed

for treating the seed. Thus, in addition to expenditures for chemicals,

some producers may incur costs for special equipment in order to comply

with the conditions of the proposal. However, the proposed treatment

for commercial seed is necessary to reduce the risk of the spread of

Karnal bunt to noninfected areas of the United States.

Notwithstanding these requirements, the positive potential of the

proposed changes on seed plantings could be considerable. As indicated

above, an estimated 727,335 acres of regulated land would be eligible

to grow wheat seed that could, under certain conditions, move in

commercial lots outside of the regulated area. It is estimated that

only about 15 percent of those 727,335 acres are currently planted with

wheat, leaving the remaining 85 percent (approximately 618,235 acres)

potentially available for wheat seed planting in the future. Even if

only 5 percent of the 618,235 acres were planted with seed as a result

of the proposed changes, an additional 30,912 acres in the regulated

area would be planted with seed. By comparison, 118,087 acres of wheat

were planted in the entire regulated area in the 1996-97 growing

season.

We are also proposing to amend the testing requirements for grain

used other than for seed. Under the proposal, such grain would have to

be tested and found free of bunted kernels, rather than spores and

bunted kernels, prior to movement from the regulated area. Growers and

handlers of grain would benefit from this change in the testing

requirements.

As much as 90 percent of the acreage of surveillance areas that is

planted with wheat is devoted to the production of grain. This rule

change, therefore, has the potential to affect most of the wheat grown

in surveillance areas. Because grain intended for movement from the

regulated area would be surveyed for bunted kernels only, and because

those surveys would be conducted at the field rather than at the

conveyance, we expect that the new testing procedures would save time

for grain handlers. In addition, because laboratory analyses for spores

would no longer be required, USDA would save money as a result of the

new testing procedures. However, it is difficult to predict the savings

in time or money, or if there would be an increase in the number of

shipments that would move from the regulated area, before the new

testing procedures are in place. Nevertheless, this proposed change

would likely have a positive impact on the movement of grain and other

regulated articles other than seed from the regulated area.

For both of these proposed changes (i.e., to allow, under certain

conditions, the movement of commercial lots of seed from restricted

areas for seed and to amend the testing requirements for regulated

articles other than seed), the

[[Page 4202]]

entities that would likely be most affected by the changes would be

wheat producers. It is estimated that there are currently a total of

354 wheat growers in the regulated areas: 248 in Arizona, 21 in

California, 23 in New Mexico, and 62 in Texas. Of those, the number of

wheat growers in surveillance areas is estimated to be 84, with 21 in

Arizona, 18 in California, and 45 in Texas, and the number of wheat

growers in the restricted area for seed (not including restricted areas

for regulated articles other than seed or surveillance areas) is

estimated to be 270, with 227 in Arizona, 3 in California, 23 in New

Mexico and 17 in Texas. Most of these wheat growers are assumed to have

gross annual receipts of less than $0.5 million, the U.S. Small

Business Administration's threshold for classifying wheat producers as

small entities. Accordingly, these proposed changes would positively

impact primarily small entities. Growers would benefit from fewer

restrictions on the movement of regulated articles, which would enable

growers to reach new markets for their products. In addition, wheat

seed dealers, harvesters, transporters, and processors may also benefit

from the proposed changes to the regulations, but the magnitude of the

impact on these entities cannot be determined.

Regarding the remainder of the proposed actions in this document,

three main parties would be affected by these amendments: vegetable

growers, millers, and decorative wheat product makers.

It is estimated that there are nearly 50 vegetable growers within

the regulated areas. However, vegetables are expected to be grown on

only about one-quarter of the total restricted acreage in the regulated

area. Those who do grow vegetables in this area are believed to already

sufficiently clean their root crop produce so that few, if any, will be

affected by APHIS cleaning protocol.

There are fewer than 30 millers who would potentially be affected

by the proposed changes. The exact number of millers who elect to mill

wheat that has tested positive for Karnal bunt is unknown at this time.

However, data show that for the four States in the original regulated

area, the number of wheat millers are: California (12, with 1

processing durum); Arizona (2, with 1 processing durum); New Mexico

(1); and Texas (7, with 1 processing rye). In 1996-97, there were 24

wheat millers in and around the regulated area that entered into

limited permits with APHIS: 2 in Arizona, 1 in New Mexico, and 21 in

California. Data from limited permits issued in the regulated areas

indicate that millers in the following States were also affected:

Minnesota, Oregon, Virginia, Missouri, and Wisconsin. However, it is

anticipated that very little wheat that tests positive for Karnal bunt

will be present and thus available for milling. Also, it is likely that

any wheat that tests positive for Karnal bunt will be channeled into

animal feed uses.

No information is available on the number and size of affected

firms that deal in decorative wheat products. Any data on the number

and size of these entities are welcomed from the public.

Virtually all of the industries affected are likely to be composed

of producers and firms that can be categorized as small according to

the Small Business Administration (SBA) size classification. Economic

impacts resulting from this rule would therefore largely affect small

entities. The analysis of economic impacts discussed below would thus

fulfill the requirement of a cost-benefit analysis under E.O. 12866, as

well as the analysis of impacts of small entities as required by the

Regulatory Flexibility Act. Unless otherwise noted, the SBA's

characterization of a small business for the categories of interest in

this analysis is a firm that employs at most 500 employees, or has

sales of $5 million or less.

It is expected that these proposed regulatory changes would provide

some positive economic relief to entities in the regulated area. This

is especially true for businesses that produce decorative wheat

products and ship outside the regulated area and for vegetable growers

on non-restricted acres because these persons are effectively

deregulated. Cleaning of vegetables and treatment of millfeed could

increase costs to some affected firms. However, cleaning of vegetables,

according to APHIS protocol, is not expected to differ greatly from

normal business practices, so additional costs should be minimal. Also,

it is expected that little of the wheat that tests positive for Karnal

bunt in surveillance areas will be milled for flour.

In terms of the vegetable cleaning protocol, it is expected that,

at most, one-quarter of the restricted acres, or 3,356 acres, comes

into vegetable production in 1997. Assuming a cleaning cost of $20 per

acre, this cleaning requirement would create an economic cost of

$67,115 (or 3,356 acres at $20 per acre).\2\ This total cost is not

expected to significantly increase the cost of production on individual

operations. An additional $1,345 would be incurred in cleaning

vegetables on a typical farm ($67,115 divided by 50 entities). Any

additional information concerning the impact on vegetable growers is

welcomed from the public.

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\2\ This additional cost of $20 per acre is for added labor and

equipment that would be incurred by vegetable growers in adhering to

APHIS' cleaning protocols.

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In terms of millfeed treatment, assuming a 15-percent infection

rate on the 1,072,800 bushels expected to be produced in the

surveillance areas in the regulated area in 1997, only 160,920 bushels

of wheat that tests positive for Karnal bunt is expected. If 50 percent

of this quantity were to remain in the regulated area and be milled

into flour, 604 tons of millfeed would be produced. In the worst case

scenario, if all production were to test positive for Karnal bunt and

remain in the regulated area for milling, 8,046 tons of millfeed would

be produced. It is expected that most millers who must handle millfeed

produced from wheat that tests positive for Karnal bunt have the

facilities or access to facilities to treat it at this time. Cost

estimates on a per establishment basis are not available because the

Karnal bunt contamination rate and the amount of wheat that tests

positive for Karnal bunt to be milled is not known. Additionally,

compensation for millfeed treatment produced from wheat grown in a

regulated area that tests positive for Karnal bunt has been proposed

and published in the Federal Register on July 11, 1997. The level of

compensation proposed is $35 per ton. At this level of cost offset, and

assuming that the initial purchase of treatment facilities has been

made, the proposed compensation level is expected to cover almost all

the costs of treatment. Thus, the amount of compensation requested on

all of this millfeed ($21,121 of compensation in the first scenario

discussed above and $281,610 in the worst case scenario) is expected to

offset all of the economic costs incurred by millers in following APHIS

millfeed protocol requirements.

In terms of methyl bromide treatment for producers of decorative

wheat products, this proposed rule change would, effectively, relax

current regulations and, therefore, is expected to result in lower

production costs for firms using decorative wheat products. No estimate

of this relief is possible given the data available. Similarly, the

additional cost associated with the moisture requirement for the methyl

bromide treatment of soil is also unknown but is expected to be small.

Any additional information from the public concerning these impacts is

welcomed.

[[Page 4203]]

These rule changes are being proposed as a result of new evidence

that indicates that no additional risk of Karnal bunt spread is likely

if they are adopted. For example, the articles released from regulation

have been determined to pose minimal risk of Karnal bunt spread to non-

infected areas. Millfeed treatment has been relaxed on flour produced

from wheat production on fields that test negative for Karnal bunt, but

treatment is still required for wheat that tests positive for Karnal

bunt. Decorative wheat products which are likely to come into contact

with soil in and outside the regulated area pose little if any risk of

disease spread. These proposed regulatory changes are the result of

continuous research and practical industry experience in dealing with

Karnal bunt.

We also propose to amend the definition of surveillance areas to

more clearly distinguish between surveillance areas and restricted

areas. In addition, we propose to amend the regulations governing the

importation of wheat into the United States to make the definition of

the term ``Karnal bunt'' consistent with the definition of that term in

the Karnal bunt regulations. We do not anticipate that these changes

would have any economic impact.

The proposed changes to the regulations would not result in any new

information collection or recordkeeping requirements.

Executive Order 12372

This program/activity is listed in the Catalog of Federal Domestic

Assistance under No. 10.025 and is subject to Executive Order 12372,

which requires intergovernmental consultation with State and local

officials. (See 7 CFR part 3015, subpart V.)

Executive Order 12988

This proposed rule has been reviewed under Executive Order 12988,

Civil Justice Reform. If this proposed rule is adopted: (1) All State

and local laws and regulations that are inconsistent with this rule

will be preempted; (2) no retroactive effect will be given to this

rule; and (3) administrative proceedings will not be required before

parties may file suit in court challenging this rule.

Paperwork Reduction Act

This proposed rule contains no new information collection or

recordkeeping requirements under the Paperwork Reduction Act of 1995

(44 U.S.C. 3501 et seq.).

List of Subjects

7 CFR Part 301

Agricultural commodities, Incorporation by reference, Plant

diseases and pests, Quarantine, Reporting and recordkeeping

requirements, Transportation.

7 CFR Part 319

Bees, Coffee, Cotton, Fruits, Honey, Imports, Incorporation by

reference, Nursery Stock, Plant diseases and pests, Quarantine,

Reporting and recordkeeping requirements, Rice, Vegetables.

Accordingly, 7 CFR parts 301 and 319 are proposed to be amended as

follows:

PART 301--DOMESTIC QUARANTINE NOTICES

1. The authority citation for part 301 would continue to read as

follows:

Authority: 7 U.S.C. 147a, 150bb, 150dd, 150ee, 150ff, 161, 162,

and 164-167; 7 CFR 2.22, 2.80, and 371.2(c).

2. Section 301.89-2 would be amended as follows:

a. By removing paragraphs (i), (j), (k), and (n).

b. By redesignating paragraphs (l), (m), and (o) as paragraphs (i),

(j), and (k), respectively.

c. By revising newly designated paragraphs (i) and (j) to read as

set forth below:

Sec. 301.89-2 Regulated articles.

* * * * *

(i) Mechanized harvesting equipment that has been used in the

production of wheat, durum wheat, and triticale;

(j) Seed conditioning equipment that has been used in the

production of wheat, durum wheat, and triticale; and

* * * * *

3. Section 301.89-3 would be amended by revising paragraph (e)(3)

to read as follows:

Sec. 301.89-3 Regulated areas.

* * * * *

(e) * * *

(3) Surveillance areas. A surveillance area is a distinct definable

area where Karnal bunt is not known to exist but, because of its

proximity to a field found during survey to contain a bunted kernel or

because of its association with grain at a handling facility containing

a bunted kernel, where intensive surveys are required.

* * * * *

4. In Sec. 301.89-5, the period at the end of paragraph (a)(3)

would be removed and a semicolon added in its place and a new paragraph

(a)(4) would be added to read as follows:

Sec. 301.89-5 Movement of regulated articles from regulated areas.

(a) * * *

(4) Without a certificate or limited permit, provided the regulated

article is straw/stalks/seed heads for decorative purposes that have

been processed or manufactured prior to movement and are intended for

use indoors.

* * * * *

5. Section 301.89-6 would be amended as follows:

a. By revising paragraph (b) to read as set forth below.

b. By adding a new paragraph (d) to read as set forth below.

Sec. 301.89-6 Issuance of a certificate or limited permit.

* * * * *

(b) To be eligible for movement under a certificate, grain from a

field within a surveillance area must be tested prior to its movement

from the field or before it is commingled with other grains and must be

found free from bunted kernels. If bunted kernels are found, the grain

will be eligible for movement only under a limited permit issued in

accordance with paragraph (c) of this section.

* * * * *

(d) To be eligible for movement as seed under certificate,

commercial lots of seed grown in a restricted area for seed must:

(1) Originate from a field or fields that are not part of a

restricted area for regulated articles other than seed or a

surveillance area;

(2) Originate from a field or fields where the most recent previous

Karnal bunt host crop tested negative for Karnal bunt;

(3) Test negative for Karnal bunt; and

(4) Be treated in accordance with Sec. 301.89-13(e).

* * * * *

6. Section 301.89-12 would be revised to read as follows:

Sec. 301.89-12 Cleaning and disinfection.

(a) Mechanized harvesting equipment and seed conditioning equipment

that have been used in the production of Karnal bunt host crops must be

cleaned and disinfected in accordance with Sec. 301.89-13 prior to

movement from a regulated area.

(b) Prior to movement from a regulated area, vegetable crops grown

in fields that are in restricted areas for regulated articles other

than seed must be cleaned of all soil and plant debris or be moved

under limited permit in accordance with Sec. 301.89-6.

7. Section 301.89-13 would be amended as follows:

[[Page 4204]]

a. By revising paragraph (a) introductory text to read as set forth

below.

b. By revising paragraphs (b) and (c) to read as set forth below.

c. By revising paragraph (e) introductory text to read as set forth

below.

d. By removing paragraph (f).

Sec. 301.89-13 Treatments.

(a) All conveyances, mechanized harvesting equipment, seed

conditioning equipment, grain elevators, and structures used for

storing and handling wheat, durum wheat, or triticale required to be

cleaned and disinfected under this subpart must be cleaned by removing

all soil and plant debris and disinfected by one of the methods

specified in paragraphs (a)(1) through (a)(4) of this section, unless a

particular treatment is designated by an inspector. The treatment used

must be that specified by an inspector if that treatment is deemed most

effective in a given situation:

* * * * *

(b) Soil must be wet to a depth of 1 inch by water (irrigation or

rain) just prior to treatment and must be treated by fumigation with

methyl bromide at the dosage of 15 pounds/1000 cubic feet for 96 hours.

(c) Millfeed must be treated with a moist heat treatment of 170

deg.F for at least 1 minute if the millfeed resulted from the milling

of wheat, durum wheat, or triticale that tested positive for Karnal

bunt.

* * * * *

(e) Commercial lots of seed originating from an eligible restricted

area for seed, as described in Sec. 301.89-6(d)(1), or seed originating

from a restricted area for seed that will be used for germplasm or for

research purposes, must be treated with a 1.5 percent aqueous solution

of sodium hypochlorite (=30 percent household bleach) containing 2 mL

of Tween 20TM per liter agitated for 10 minutes at room

temperature followed by a 15-minute rinse with clean, running water and

then by drying, and either:

* * * * *

PART 319--FOREIGN QUARANTINE NOTICES

8. The authority citation for part 319 would continue to read as

follows:

Authority: 7 U.S.C. 150dd, 150ee, 150ff, 151-167, 450, 2803, and

2809; 21 U.S.C. 136 and 136a; 7 CFR 2.22, 2.80, and 371.2(c).

9. In Sec. 319.59-1, the definition of ``Karnal bunt'' would be

revised to read as follows:

Sec. 319.59-1 Definitions.

* * * * *

Karnal bunt. A plant disease caused by the fungus Tilletia indica

(Mitra) Mundkur.

* * * * *

Done in Washington, DC, this 20th day of January 1998.

Terry L. Medley,

Administrator, Animal and Plant Health Inspection Service.

[FR Doc. 98-1776 Filed 1-27-98; 8:45 am]

BILLING CODE 3410-34-P