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. 98-070-3]

Closure of Harry S Truman Animal Import Center

AGENCY: Animal and Plant Health Inspection Service, USDA.

ACTION: Final rule.

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SUMMARY: We are closing the Harry S Truman Animal Import Center

(HSTAIC) and amending the animal import regulations to remove all

provisions related to HSTAIC. The facility, which has been used for

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

mouth disease exists, has been chronically under used and has never

generated enough revenue to be self-sufficient.

EFFECTIVE DATE: December 21, 1998.

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.

On August 10, 1998, we published in the Federal Register (63 FR

42593-42596, Docket No. 98-070-2) a proposal to close HSTAIC and amend

the animal import regulations in 9 CFR parts 93 and 94, and the user

fee regulations in 9 CFR part 130, to remove all provisions related to

HSTAIC.

We solicited comments concerning our proposal for 60 days ending

October 9, 1998. We received three comments by that date. One was from

an individual; the other two from industry associations.

One comment, from an industry association, was completely

supportive of our proposal to close HSTAIC.

The other industry association comment agreed that HSTAIC needs to

close, but voiced two concerns.

The first concern was that there will be greater incentive to

smuggle llamas and alpacas into Chile from other regions, with the risk

that foot-and-mouth disease (FMD) or new diseases would appear in

Chile. Chile is currently free of FMD, while other regions in South

America are not. Llamas and alpacas from Chile can enter the United

States without having to go through quarantine in HSTAIC. Without

HSTAIC, llamas and alpacas from regions where FMD exists would not be

directly imported into the United States.

We believe this situation is unlikely to lead to more smuggling of

animals into FMD- and rinderpest-free regions, such as Chile. Since

HSTAIC was dedicated in 1979, only 11 shipments of imported camelids

have been quarantined in the facility. Demand for llamas and other

camelids in the United States is now shrinking. As demand shrinks, so

does the incentive for smuggling animals. Under these circumstances, we

believe there is no significant risk.

The commenter's second concern was that any alternative high

security import facility maintain high standards for safety and humane

care. We agree completely. We are considering alternatives for

importing ruminants and swine from regions where FMD or rinderpest

exists. No alternative would be acceptable if high standards for safety

and humane care were not included.

One comment objected to our proposal to close HSTAIC. The commenter

stated: (1) The United States needs to have a facility like HSTAIC, and

the facility should not have to be self-sustaining; (2) we should

modify HSTAIC just enough to keep it operational, and make major

renovations and repairs later; and (3) we underestimated the cost of

closing HSTAIC.

As we explained in our proposed rule (see 63 FR 42593), under the

statute authorizing HSTAIC, the facility was intended to be self-

sustaining. Unfortunately, this has never happened. Demand to use

HSTAIC has never been high enough to make it self-supporting. Demand is

now falling. Instead of live animals, germplasm--embryos and semen--is

now imported for breeding. Under these circumstances, we do not believe

HSTAIC is needed. Industry representatives appear to agree; both

comments we received from industry associations supported our proposal

to close the facility.

We could delay closing HSTAIC, as the commenter suggested. The

State of Florida has extended our sewage permit until August, 2003

(this action took place after our proposed rule was published).

However, the longer we delay closing the facility, the longer our

operating losses will continue, and the more it will cost to close the

facility. If the commenter is correct, that we have underestimated the

cost to close the facility, then it is even more important that we act

quickly to minimize our losses. To do this, we must close HSTAIC as

soon as possible.

Therefore, for the reasons given in the proposed rule and in this

document, we are adopting the proposed rule as a final rule.

Executive Order 12866 and Regulatory Flexibility Act

This 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.

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

[[Page 64174]]

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

great a 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 underused and has never

generated enough revenue to be self-sufficient.

Vital repairs and maintenance of the facility and its equipment has

been accomplished by the use of agency funds that would otherwise have

been directed toward pest eradication efforts. 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 had 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 closing the facility and removing from the CFR the

current regulations concerning HSTAIC. Under the terms of this rule,

the Center will not accept animals for quarantine after December 31,

1998, and APHIS will enter into an agreement with a prospective

importer for final exclusive use of the facility only if it is certain

that the animals will enter the Center on or before that date.

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

swine importations. 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 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 would likely have increased, if the center remained

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 underutilization, 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 had to 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 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

[[Page 64175]]

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

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

costs were 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 would 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 will make this

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

operating can 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, will be offset by

the future saving the agency will realize.

Closure of the facility will 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. This action is not expected to have a negative economic

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

camelids into the United States from Chile and other countries, which

are recognized as FMD free. The facility closure should 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 will

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

entities.

Executive Order 12988

This final rule has been reviewed under Executive Order 12988,

Civil Justice Reform. This rule: (1) Preempts all State and local laws

and regulations that are inconsistent with this rule; (2) has no

retroactive effect; and (3) does not require administrative proceedings

before parties may file suit in court challenging this rule.

Paperwork Reduction Act

This 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.

9 CFR Part 130

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

poultry products, Quarantine, Reporting and recordkeeping requirements,

Tests.

Accordingly, we are amending 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 is 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 are removed and reserved.

Secs. 93.522 and 93.523 [Removed]

3. In part 93, Secs. 93.522 and 93.523 are 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 continues 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 135a; 31

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

371.2(d).

Sec. 94.1 [Amended]

5. In Sec. 94.1, paragraph (b)(2) is removed and paragraphs (b)(3)

and (b)(4) are redesignated as paragraphs (b)(2) and(b)(3),

respectively.

PART 130--USER FEES

6. The authority citation for part 130 is 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, 134c, 134d, 134f, 136, and

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

Sec. 130.1 [Amended]

7. In Sec. 130.1, the definition of Animal Import Center is amended

by removing the last sentence.

Done in Washington, DC, this 12th day of November 1998.

Joan M. Arnoldi,

Acting Administrator, Animal and Plant Health Inspection Service.

[FR Doc. 98-30973 Filed 11-18-98; 8:45 am]

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