Closure of Harry S Truman Animal Import Center

DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection Service

9 CFR Parts 93, 94, and 130

[Docket No. 98-070-2]

Closure of Harry S Truman Animal Import Center

AGENCY: Animal and Plant Health Inspection Service, USDA.

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: We are proposing to close the Harry S Truman Animal Import

Center (HSTAIC) and to amend the animal import regulations to remove

all provisions related to HSTAIC. The facility, which is used for high

risk imports, such as ruminants from countries where foot-and-mouth

disease exists, is chronically under used and has never generated

enough revenue to be self-sufficient. Closing HSTAIC would eliminate a

drain on government resources, which does not appear to be justified by

demand.

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

before October 9, 1998.

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

Docket No. 98-070-2, 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. 98-070-2. 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: Dr. Gary Colgrove, Chief Staff

Veterinarian, National Center for Import and Export, VS, APHIS, 4700

River Road Unit 38, Riverdale, MD 20737-1231; (301) 734-3276; or e-

mail: [email protected].

SUPPLEMENTARY INFORMATION:

Background

The Harry S Truman Animal Import Center (HSTAIC) is an offshore,

maximum biosecurity animal import facility owned and operated by the

Animal and Plant Health Inspection Service (APHIS), an agency of the

United States Department of Agriculture. It is the only facility of its

kind in the United States.

HSTAIC was dedicated in 1979. Authorized by statute in 1970 (The

Act of May 6, 1970, 7 U.S.C. 135-135b), HSTAIC was designed to be used

as a quarantine facility for ruminants and swine from countries where

high-risk diseases, such as foot-and-mouth disease (FMD) or rinderpest,

hog cholera, African swine fever, and swine vesicular disease, exist.

Animals are consigned to the facility upon arrival in the United

States, and then tested and monitored for a period of time to ensure

their freedom from disease. The full cost of operating HSTAIC was to be

paid for by the importers using the facility.

At the time HSTAIC opened, demand for breeding stock, particularly

cattle, from high disease-risk countries was projected to grow. It was

anticipated that HSTAIC would be fully utilized--with at least three

importations per year--and costs would be fully covered.

These assumptions turned out to be wrong. From the time it opened,

HSTAIC has never been fully used. Only animals from countries where FMD

or rinderpest exists have been imported through the facility, and on

average, there has been only one importation per year. Since 1979, a

total of 633 cattle, 574 swine, 460 goats and sheep, and 4,596 camelids

have been imported through HSTAIC. The last importation of cattle

through HSTAIC occurred in 1985. Since 1995, the only animals imported

through HSTAIC have been camelids.

As a result of chronic under use, HSTAIC has never generated enough

revenue to be self-sufficient. During periods when importers are not

using HSTAIC, APHIS must keep the facility staffed, provide electric

and telephone service, and cover other minimal operational and

maintenance costs. These costs ranged from $98,000 in FY 1995 to

$385,000 in FY 1997, averaging $219,000 per year. We tried in the early

1990s to curtail losses by amending our HSTAIC regulations. We

eliminated the ``tier system,'' which gave preference to certain types

of animals. We also instituted a requirement that applicants deposit

$32,000 with their application. We draw on the winning applicant's

deposit to cover the cost of preparing and maintaining HSTAIC in

readiness for that applicant's animals. Together, these changes

encouraged more importations through HSTAIC and shifted some of the

cost of preparing the facility to receive animals from APHIS to the

winning importer. In turn, this encouraged importers to carry through

and use the facility. However, these changes did not eliminate APHIS'

losses, but only reduced them. Since 1991, we have lost $1.6 million

keeping HSTAIC open for importers.

We do not anticipate any increase in demand to use HSTAIC. Instead,

we expect demand to continue falling. There has never been any demand

to use HSTAIC for animals from regions other than those where FMD or

rinderpest exists. In 1970, only 10 countries or territories were

recognized as free from FMD and rinderpest. As of January 1998, 51

countries had been recognized as free of these two diseases. In

addition, we recently amended our animal import regulations to

recognize regions, not only countries, as free of disease. Over time,

more and more regions, or geographical areas, will be able to acquire

status as FMD and rinderpest free. As a result, importers can import

animals from a growing number of sources without needing to use HSTAIC.

In addition, since HSTAIC opened, international trade in live

animals for breeding purposes has fallen. Instead, germplasm--embryos

and semen--is imported for breeding. Using germplasm is less expensive

and more reliable. Germplasm can be imported even from high-risk

countries without using HSTAIC.

We have considered keeping HSTAIC open. Currently, importers who

use the facility must pay APHIS approximately $1 million per

importation to cover the cost of operating the facility during the time

the animals are in quarantine. This figure can only increase. HSTAIC

needs urgent and substantial repairs to keep it operational and in

compliance with environmental and other requirements.

[[Page 42594]]

We have already spent $1 million to repair and modify an incinerator,

test emissions, and replace stack pipes in order to meet environmental

standards set by the U.S. Environmental Protection Agency (EPA) and the

Florida Department of Environmental Protection (FDEP). Even with these

repairs, we cannot operate the HSTAIC incinerators at full capacity: if

we did so, we would be in violation of EPA and FDEP standards. Such

limited incinerator capacity means we cannot quickly dispose of

diseased animals, should that need arise.

We estimate that HSTAIC urgently needs approximately $4.5 million

worth of additional repairs and upgrades for which APHIS does not have

an appropriation. Having this work done would significantly increase

the already substantial fees for use of HSTAIC if the cost of the

repairs and upgrades were to be recovered from users. The required work

includes repairing and upgrading the facility's waste water treatment

facility; replacing a generator, an incinerator, the roof, and

underground fuel storage tanks; and upgrading the fire suppression/

alarm, heating, ventilation, and air conditioning systems. Our highest

priority is replacing the wastewater treatment facility, at an

estimated cost of $1.2 million. If we do not do this work soon, APHIS

may face significant fines from EPA and FDEP.

Recently, HSTAIC has been used mainly by persons importing llamas

and alpacas into the United States. These animals are currently

imported mainly for animal exhibits and as pets. At some time in the

future, enough llamas and alpacas will have been imported into the

United States that animals bred in this country will satisfy demand,

and importations will drop.

At this time, the only way importers can import animals directly

into the United States from regions where high-risk diseases exist is

through HSTAIC. Closing HSTAIC would stop these importations entirely.

We are therefore looking into other possible means by which these

animals can be safely imported into the United States. If it appears

that high-risk animals could be imported into the United States by some

other route or under other conditions without presenting an undue

disease risk, we will publish a proposal in the Federal Register.

On July 13, 1998, we published a notice in the Federal Register (63

FR 37483, Docket No. 98-070-1) announcing that we do not plan to hold a

lottery in December, 1998 for exclusive use of HSTAIC in calendar year

1999. (Under Sec. 93.430(a) of the regulations, APHIS enters into a

cooperative-service agreement with only one importer for each

importation through HSTAIC. We refer to this as ``exclusive use''.) In

the same notice we also announced that we will not enter into any

cooperative-service agreements with importers for use of the facility

unless it is certain the animals will enter HSTAIC on or before

December 31, 1998. This will ensure that no animals are in the facility

beyond March 31, 1999, and allow us to close the facility by the end of

FY 1999, should we decide to do so as a result of this rulemaking.

Executive Order 12866 and Regulatory Flexibility Act

This proposed rule has been reviewed under Executive Order 12866.

The rule has been determined to be not significant for the purposes of

Executive Order 12866 and therefore, has not been reviewed by the

Office of Management and Budget.

If this proposed rule is adopted, we will close HSTAIC and amend

the animal import regulations by removing all provisions related to

HSTAIC.

HSTAIC is a maximum-security APHIS animal import center that

provides quarantine services for animals which would otherwise be

excluded because they are being imported directly from countries where

high-risk diseases such as foot-and-mouth disease (FMD), rinderpest,

African swine fever, hog cholera, and swine vesicular disease are

found. HSTAIC was designed to be a self-supporting facility, to as a

great degree as possible, with costs defrayed by charges to the

importers of the animals who use the facility. However, this has not

been the case. Instead, the facility has been under used and has never

generated enough revenue to be self-sufficient.

Vital repairs and maintenance of the facility and its equipment has

been accomplished by diverting the Agency's scarce resources, as APHIS

has no funds allocated for this purpose. However, these costly short

term repairs and maintenance have not been adequate to upgrade the

facility. Regulations concerning the use of the facility were revised

in the early 1990's so that any user of HSTAIC for a single animal

importation would be responsible for paying all related costs, except

capital expenses, incurred in qualifying and quarantining the imported

animals at HSTAIC, but the deficit has persisted. At inception a strong

demand was projected for breeding stock in order to import strains of

livestock that had specific traits needed for improving U.S. domestic

breeds, particularly cattle from high disease-risk countries. However,

after the first six imports, this has not occurred. The facility has

not had the optimal three imports in any year and money for capital

expenditures has not been appropriated. Therefore, we are proposing to

close the facility and remove from the CFR the current regulations

concerning HSTAIC. Under the terms of this proposal, the Center would

not accept animals for quarantine after December 31, 1998, and APHIS

would enter into an agreement with a prospective importer for final

exclusive use of the facility only if it was certain that the animals

could enter the Center on or before that date.

Since HSTAIC was dedicated in 1979 there have been 21 ruminant and

swine importations (including Alpaca imports from Peru which are still

in quarantine and to be released on September 1998). The first imports

(cattle from Brazil) were released in July 1980. A total of 6,713

animals have been quarantined and released during this period,

including cattle (633), swine (574), sheep and goats (460) and camelids

(5,046). Several countries in Latin America (Bolivia, Brazil, Chile and

Peru), Europe (France, Germany), Asia (China), and Africa (South

Africa) were the sources of the imports. Of these, Chile, France and

Germany are now recognized as FMD free. Certain regions in South Africa

are also in the process of being recognized as free. The first six

imports were cattle (3 from Brazil and 3 from Europe). Camelids have

accounted for 11 imports (5 from Bolivia, 1 from Chile/Brazil and 5

from Peru). There have been three imports of swine (1 from China, 1

from France and 1 from Germany), and one import of sheep and goats

(from South Africa). Eight out of the nine most recent imports have

been camelids.

The above total, 21 imports in nearly 20 years, has fallen short of

the anticipated three shipments of animals per year. Based on three

months of isolation at the center for each group and one month between

shipments for cleaning and disinfecting, with full use, there should

have been 57 imports handled through HSTAIC. Furthermore, the size of

individual imports has been smaller than the capacity of the facility,

and thus importers have failed to take advantage of economies of scale,

which would have reduced the per animal cost of using the facility, as

costs per animal are lower as numbers increase. The capacity of the

facility is about 400, plus sentinel animals (This designation is for

cattle. For smaller animals, such as sheep and goats, even larger

numbers can be accommodated). Only 6,713 animals were actually imported

and

[[Page 42595]]

quarantined during the entire 21 years. The potential number should

have been more than 22,800 animals.

The quarantine process is costly regardless of numbers, and is paid

entirely by the importers. The average fee for the last 10 imports has

been $1,920 (or $16 per day) per head. Each selected applicant has

exclusive rights to use HSTAIC for the importation during the

quarantine period and is responsible for paying all costs, excluding

capital expenditure, incurred in qualifying and quarantining the

specified animals through HSTAIC. A partial list of costs includes:

expense for sentinel animals, laboratory tests, medical treatment,

official travel by APHIS personnel, courier services to transport test

samples to the Foreign Agricultural Disease Diagnostic Laboratory

(FADDL), salaries of HSTAIC personnel, all supplies needed for animal

care, maintenance, and testing and the post-quarantining cleaning and

disinfection of HSTAIC, as well as utilities and overhead, including

salaries and benefits of support staff. The operational cost of an

average importation is high--between $750,000 and $1 million per import

period. This cost is likely to increase, should the center remain open,

since substantial infrastructure repairs are needed immediately and

there is an ever-increasing requirement to maintain the aging facility.

Expenses charged to selected importers vary by importation depending on

the kind and number of animals in each shipment, and the country of

origin.

Since operating costs while the facility is in use are charged

entirely to the importers, if HSTAIC were fully utilized (that is,

housing three importations during each year), it could probably be

nearly self-supporting. However, due to under-utilization, the minimum

operating budget must cover costs borne by the facility in the absence

of animal shipments. The facility has never had three imports in a

single year since its opening. In fact, no quarantines at all occurred

for two years (1986 and 1990), two imports each for only three years

(1993, 1996 and 1998), and the remaining years have had only one import

each year. Thus, up to two-thirds of operational costs have had to be

covered from agency funds. During a non-used year, approximately

$390,000 must be allocated, from the agency budget, just to maintain

the facility. In a partial-use year the deficits ranged between

$130,000 and $260,000. Over the duration of the facility, the agency

has diverted approximately $4 million in nominal dollars, or about $6.4

million in 1998 dollars, for operational expenditures to keep the

facility ready for very few users.

These deficit amounts do not reflect the depreciation of the

component parts of the facility and of replacement needs. While the

property presently has no other purpose except maintaining readiness

for the small number of importers of special livestock from countries

that are not free from FMD, equipment, supplies and the physical plant

still lose their value, whether with disuse or use, as they wear out or

become obsolete. Furthermore, as the facility has aged, maintaining the

building in useable condition has required more frequent upgrading of

its components, which have varying degrees of life expectancy. The

annual adjusted depreciation value of the various physical components

of the facility is approximately $93,776 (obtained by straight line

depreciation of all replaceable assets and equipment whose useful life

is still active) or about $257/day. This is the cost of depreciation

the facility has been incurring annually even with full use, the amount

that should have been collected for the purpose of upgrading equipment.

By initially excluding capital expenditures from the fee structure, the

agency has forfeited the opportunity to charge users approximately $1.8

million in nominal dollars (or about $2.4 million in 1998 dollars) that

it could have been collecting over the entire period. Overall, the

operational deficits and the capital expenditures have accounted for

about $8.8 million. If the facility is kept open, the agency would

continue to incur similar losses, with only slight relief if these

costs are prorated and added to user fees.

The agency has already spent over $1 million in the last five years

to repair and modify an incinerator, test emissions, and replace stack

pipes, in an effort to meet standards set by the U.S. Environmental

Protection Agency (EPA) and the Florida Department of Environmental

Protection (FDEP). Attempting to keep this aging facility in compliance

with EPA/FDEP standards will continue to be expensive for the agency.

(These needed repairs include repairing and upgrading the facility's

wastewater treatment facility; replacing a generator, an incinerator,

the roof, and underground fuel storage tanks; and upgrading the fire

suppression/alarm and heating, ventilation, and air conditioning

systems.) Currently about $4.5 million are needed to make the most

urgently needed repairs. Closing the facility would make this

unnecessary. Since the agency is currently operating with a large

deficit, even increased use would still not immediately meet revenue

needs. The money and human resources needed to keep this facility

operating could be diverted to other programs that play a more

important role in protecting the United States against animal disease

incursions. The cost of closing the facility, about $1 million, would

be offset by the future saving the agency would realize.

The proposed closure of the facility would not impact a substantial

number of importers, because most importers do not use HSTAIC. Despite

the original expectation that cattle and swine would be the predominant

imports, over the last six years the facility has been used mainly by

importers of llamas and alpacas. Using public funds in the maintenance

of a facility that serves only specific importers places an undo burden

on tax payers. The action is not expected to have a negative economic

impact on this small number of entities, which could still import

camelids into the United States from Chile, which has been recognized

as FMD free since HSTAIC was dedicated. The facility closure could

produce positive budgetary impact for the agency.

Under these circumstances, the Administrator of the Animal and

Plant Health Inspection Service has determined that this action would

not have a significant economic impact on a substantial number of small

entities.

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 information collection or

recordkeeping requirements under the Paperwork Reduction Act of 1995

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

Lists of Subjects

9 CFR Part 93

Animal diseases, Imports, Livestock, Poultry and poultry products,

Quarantine, Reporting and recordkeeping requirements

9 CFR Part 94

Animal diseases, Imports, Livestock, Meat and meat products, Milk,

Poultry and poultry products, Reporting and recordkeeping requirements.

[[Page 42596]]

9 CFR Part 130

Animals, Birds, Diagnostic reagents, Exports, Imports, Poultry and

poultry products, Quarantine, Reporting and recordkeeping requirements,

Tests.

Accordingly, we are proposing to amend 9 CFR parts 93, 94 and 130

as follows:

PART 93--IMPORTATION OF CERTAIN ANIMALS, BIRDS, AND POULTRY, AND

CERTAIN ANIMAL, BIRD, AND POULTRY PRODUCTS; REQUIREMENTS FOR MEANS

OF CONVEYANCE AND SHIPPING CONTAINERS

1. The authority citation for part 93 would be revised to read as

follows:

Authority: 7 U.S.C. 1622; 19 U.S.C. 1306; 21 U.S.C. 102-105,

111, 114a, 134a, 134b, 134c, 134d, 134f, 136, and 136a; 31 U.S.C.

9701; 7 CFR 2.22, 2.80, and 371.2(d).

Secs. 93.430 and 93.431 [Removed and reserved]

2. In part 93, Secs. 93.430 and 93.431 would be removed and

reserved.

Secs. 93.522 and 93.523 [Removed]

3. In part 93, Secs. 93.522 and 93.523 would be removed.

PART 94--RINDERPEST, FOOT-AND-MOUTH DISEASE, FOWL PEST (FOWL

PLAGUE), EXOTIC NEWCASTLE DISEASE, AFRICAN SWINE FEVER, HOG

CHOLERA, AND BOVINE SPONGIFORM ENCEPHALOPATHY: PROHIBITED AND

RESTRICTED IMPORTATIONS

4. The authority citation for part 94 would continue to read as

follows:

Authority: 7 U.S.C. 147a, 150ee, 161, 162, and 450; 19 U.S.C.

1306; 21 U.S.C. 111, 114a, 134a, 134b, 134c, 134f, 136, and 136a; 31

U.S.C. 9701; 42 U.S.C. 4331 and 4332; 7 CFR 2.22, 2.80, and

371.2(d).

5. In Sec. 94.1, paragraph (b) would be revised to read as follows:

Sec. 94.1 Regions where rinderpest or foot-and-mouth disease exists;

importations prohibited.

* * * * *

(b) The importation of any ruminant or swine or any fresh (chilled

or frozen) meat of any ruminant or swine 1 that originates

in any region where rinderpest or foot-and-mouth disease exists, as

designated in paragraph (a) of this section, or that enters a port in

or otherwise transits a region in which rinderpest or foot-and-mouth

disease exists, is prohibited:

---------------------------------------------------------------------------

\1\ Importation of animals and meat includes bringing the

animals or meat within the territorial limits of the United States

on a means of conveyance for use as sea stores or for other

purposes.

---------------------------------------------------------------------------

(1) Except as provided in part 93 of this chapter for wild

ruminants and wild swine; and

(2) except as provided in paragraph (c) of this section for meat of

ruminants or swine that originates in regions free of rinderpest and

foot-and-mouth disease but that enters a port or otherwise transits a

region where rinderpest or foot-and-mouth disease exists; and

(3) except as provided in Sec. 94.4 of this part for cooked or

cured meat from regions where rinderpest or foot-and-mouth disease

exists.

* * * * *

PART 130--USER FEES

Sec. 130.1 [Amended]

6. The authority citation for part 130 would be revised to read as

follows:

Authority: 5 U.S.C. 5542; 7 U.S.C. 1622; 19 U.S.C. 1306; 21

U.S.C. 102-105, 111, 114, 114a, 134a, 134b, 134c, 134d, 134f, 136,

and 136a; 7 CFR 2.22, 2.80, and 371.2(d).

7. In Sec. 130.1, the definition of Animal Import Center would be

amended by removing the last sentence.

Done in Washington, DC, this 4th day of August, 1998.

Joan M. Arnoldi,

Acting Administrator, Animal and Plant Health Inspection Service.

[FR Doc. 98-21363 Filed 8-7-98; 8:45 am]

BILLING CODE 3410-34-P