3410-05-P DEPARTMENT OF AGRICULTURE Farm Service

Billing Code: 3410-05-P

DEPARTMENT OF AGRICULTURE

Farm Service Agency

Notice of Funds Availability (NOFA) for the Commodity Container Assistance

Program

[Docket ID FSA-2022-0006]

AGENCY: Farm Service Agency, Department of Agriculture (USDA).

ACTION: Notification of funds availability.

SUMMARY: The Farm Service Agency (FSA) is announcing the availability of funding

for the Commodity Container Assistance Program (CCAP) in response to temporary

market disruptions that have created logistical challenges associated with all aspects of

the availability and flow of containers to transport agricultural commodities and products

made from those commodities (collectively referred to as “agricultural commodities”),

and are preventing or delaying American-grown agricultural commodities from reaching

their markets. CCAP will be focused on increasing intermodal container capacity

through partnerships with the Port of Oakland, in Oakland, California, and the Northwest

Seaport Alliance (NWSA), a marine cargo operating partnership between the Port of

Seattle and the Port of Tacoma in Washington State. Both the Port of Oakland and the

ports managed by NWSA have been identified as key gateways for American-grown

agricultural commodities, and each have also experienced significant challenges with the

flow of containerized agricultural commodities. To assist owners of American-grown

agricultural commodities in shipping their commodities from U.S. ports to global

markets, CCAP will support improved use of empty shipping containers, along with the

prepositioning and temporary storage of filled shipping containers near export terminals.

USDA may pursue additional temporary partnerships with other ports or intermodal

facilities as supply chain conditions warrant, if funding is available. In this document,

FSA is providing the eligibility requirements, application process, and payment

calculations for CCAP.

DATES: Funding availability: Implementation will begin [Insert date of publication

in the FEDERAL REGISTER].

Applications Due Date: We will accept applications for funding through January

31, 2023.

Comment Due Date: We will consider comments on the information collection

request discussed in the Paperwork Reduction Act section that we receive by: [Insert

date 60 days from the date of publication in the FEDERAL REGISTER].

ADDRESSES: Comments: We invite you to submit comments on the information

collection request. You may submit comments using any of the following methods,

although FSA prefers that you submit comments electronically through the Federal

eRulemaking Portal:

• Federal eRulemaking Portal: Go to http://www.regulations.gov and search

for Docket ID FSA–2021–0012. Follow the online instructions for

submitting comments.

• Mail, Hand-Delivery, or Courier: Director, Price Support Division, FSA,

USDA, 1400 Independence Avenue SW, Stop 0510, Washington, DC

20250-0522. In your comment, specify the docket ID FSA-2022-0006.

All comments received, including those received by mail, will be posted without

change and will be publicly available on http://www.regulations.gov.

Applications: To apply, send a complete form FSA-862, Commodity Container

Assistance Program (CCAP) Application, to the FSA National Office by e-mail to:

SM.FPAC.FSA[email protected].

FOR FURTHER INFORMATION CONTACT: Danielle L. Cooke; telephone: (202)

720–1919; or by email: [email protected]. Persons with disabilities who require

alternative means for communication should contact the USDA Target Center at (202)

720–2600 (voice) or (844) 433-2774 (toll-free nationwide).

SUPPLEMENTARY INFORMATION:

Background

As agricultural producers and companies deal with the continued impacts of the

COVID-19 pandemic, ocean carriers’ poor service and refusal to serve customers,

including refusing to provide and ship containers, have exacerbated existing challenges.

Specifically, ocean carriers have made fewer shipping containers available for U.S.

agricultural commodities, repeatedly changed return dates, and charged unjust fees.

These same ocean carriers have short-circuited the pathways typically used to make

shipping containers available to be filled with agricultural and other goods, and they have

subsequently rushed these containers back to foreign ports empty. These trends have and

continue to be seen at several U.S. ports, including but not limited to the Port of Oakland,

the Port of Seattle, and the Port of Tacoma, where many ocean carriers have partially or

completely suspended their services. Historically, approximately 60 percent of the

products marketed through the Port of Oakland were agricultural commodities. Now,

because of ocean carriers’ disruptive behavior, some American-grown agricultural

commodities have faced severe challenges in reaching their markets. Containerized

exports of agricultural goods fell by 17 percent from California ports, costing California

agriculture an estimated $2.1 billion May to September 2021,

with a more severe decline

of 34 percent for the Port of Oakland. Similar challenges exist at the ports managed by

the NWSA in Washington, where congestion-induced impacts to vessel schedules have

made it difficult for agricultural goods to be loaded on ships at the export terminals.

Containerized exports of agricultural commodities from Seattle are down 30 percent

during the last 6 months of 2021 while empty shipping containers leaving the Port of

Seattle have increased by a similar percentage.

In accordance with 15 U.S.C. 714c, the Secretary is using CCC funds to assist

owners of agricultural commodities in shipping domestic agricultural commodities out of

the Port of Oakland and NWSA. Funds available to CCC will be used as authorized by

section 5(b) of the CCC Charter Act (15 U.S.C. 714c(b)). This authority will be used to

assist in making available materials and facilities in connection with the marketing of

agricultural commodities. It will assist owners of U.S. agricultural commodities with

ongoing market disruptions and facilitate the recovery of shipping and other logistical

services required to bring domestically produced agricultural commodities to markets.

Specifically, FSA will provide a $125 per container payment to partially assist

agricultural commodity owners with the additional logistical expenses associated with

picking up empty shipping containers at the Port of Oakland to be filled with agricultural

See https://giannini.ucop.edu/publications/are-

update/issues/2021/25/2/containergeddon-and-california-agriculture/.

commodities. The Port of Oakland has opened a 25-acre temporary terminal to prepare

and ease the provision of empty containers to be filled, which will ultimately reduce

congestion at the main terminal. Through its separate gate, this terminal will allow for

quicker pickup of empty containers and provide a pathway to bypass the congestion at the

main terminals. The separate gate will also provide for increased access to available

equipment and ultimately help avoid fewer unpredictable congestion surcharges for

trucks. Under normal circumstances empty containers would be easily available from

ocean carriers at the regular terminals, the combination of congestion, potential for

additional drayage, and the terminal fees will add cost to the agricultural commodity

owners and necessitates the $125 per container payment.

Additionally, through the partnerships with both the Port of Oakland and NWSA,

FSA will offer payments of $200 per container for filled dry containers and $400 per

container for filled refrigerated containers (generally referred to as “reefer containers”) to

owners who deliver such filled containers to designated temporary storage terminals.

These payments will help address the logistical costs of moving a container twice – first

to the preposition terminal, and second to the terminal loading the vessel – along with the

costs associated with temporary storage. Prior to the recent unpredictable delivery and

export windows, owners of agricultural commodities had been provided sufficient

delivery windows and notice to deliver the agricultural commodities directly to the

terminal that loads the vessel.

In each of these cases, the agricultural commodity owner will likely incur an extra

charge for short distance transportation, or “drayage,” fees from the terminal operator or

ocean carrier and daily storage for any prepositioned filled containers. The drayage alone

is expected to range between $150 and $250 per container based on discussions with

agricultural shippers operating in the Oakland, Seattle, and Tacoma regions. Temporary

storage of filled containers is expected to cost about $50 per dry container per day and

$200 for reefer containers. The per-container fee for reefer containers is higher, since

reefer containers require additional electricity and labor costs, which directly result in

higher storage and transportation costs. The value of CCAP for U.S. companies lies in

the benefits of increasing the ability of moving containers to meet narrow and changing

shipping windows provided by the ocean carriers. These payments will lessen the burden

on owners to manage the logistical challenges and continue to move containers despite

the service challenges. All payments to agricultural commodity owners will be made in

arrears and verified with terminal records.

USDA will make payments as frequently as monthly to eligible owners or

designated marketing agents of U.S. agricultural commodities based on the number of

eligible shipping containers they picked up or stored starting retroactively back to March

1, 2022, through December 31, 2022, from eligible ports to ship agricultural commodities

to their designated markets on container ships.

FSA is administering the direct payments under the general supervision and

direction of the Deputy Administrator.

Definitions

The following definitions apply to this notice:

Deputy Administrator means Deputy Administrator for Farm Programs, Farm

Service Agency, U.S. Department of Agriculture, or their designee.

Designated marketing agent means an individual or entity that has explicit written

permission to apply for CCAP from, and on behalf of, the owner of the agricultural

commodities.

Owner means a business entity, including cooperative, handler, company, or

exporter that is liable for and has ownership of the agricultural commodities in transit.

Only one owner is allowed to apply for payment per container.

Picked up means the applicant picked up empty shipping containers from the

designated port terminal to be filled with eligible agricultural commodities.

Stored means the applicant delivered the shipping container filled with eligible

agricultural commodities to the designated port terminal for temporary storage at a

designated storage terminal.

United States means all 50 states of the United States, the District of Columbia,

the Commonwealth of Puerto Rico, and any other territory or possession of the United

States.

Eligible Commodities

Eligible agricultural commodities are agricultural commodities (other than

tobacco) that are grown or produced in the United States for food, feed, or fiber, and

products made from those commodities, including forestry products, that are to be or

were shipped in a shipping container picked up from the Port of Oakland or contained

within a filled shipping container stored at the Port of Oakland or the NWSA locations

from March 1, 2022, through December 31, 2022. A list of examples of eligible and

ineligible commodities will be posted on the FSA website for CCAP.

Eligibility

To be eligible for a CCAP payment, each applicant must:

• Own domestically-grown or produced agricultural commodities or be the

designated marketing agent of the owner;

• Have picked up containers from the Port of Oakland or stored containers

at the Port of Oakland or NWSA and filled the containers with agricultural

commodities that are grown or produced in the United States for food,

feed, or fiber, and products made from those commodities;

• Have properly executed power of attorney or signature authority if

representing an individual or entity;

• Submit completed application as specified in the Application Process

section below; and

• Have a Unique Entity Identifier (created in and used by www.SAM.gov).

Application Process

FSA will accept applications from May 31, 2022 through January 31, 2023. To

apply for CCAP, each eligible applicant must submit a completed form FSA-862,

Commodity Container Assistance Program (CCAP) Application to provide the monthly

number of containers picked up or stored by type of container and by port. Applicants

may submit applications on a monthly basis, all at once at the end of CCAP, or for a

combination of months, but applicants should not submit duplicate information for a

month that has already been previously submitted. Applications should be submitted to

the FSA National Office by e-mail to the following email address:

SM.FPAC.FSA[email protected].

Applicants are to submit only one FSA-862 for all shipping containers picked up

or stored and report the number of containers picked up from the specified port for the

relevant month(s), regardless of the number of agricultural commodities that are packed

and shipped out of the designated port. In other words, the application is based on the

number of shipping containers picked up or stored and used for U.S. agricultural

commodities, but it is not based on the type of agricultural commodity. Shipping

containers that are filled with non-agricultural commodities are not eligible for CCAP

payments. Revised applications will not be allowed without supporting documentation if

the application has been approved for payment and any revised applications must be

submitted no later than January 31, 2023. Subject to available funds, CCAP payments

will not be issued until an applicant certifies the number of containers picked up or stored

each month or group of months at the designated port, as applicable. The applicant must

certify to the total number of containers picked up or stored by the application period

deadline as specified in this document.

The number and type of shipping containers claimed on the FSA-862 will be as

certified by the applicant and are subject to spot check. Applicants may also be asked to

provide documentation of what agricultural commodity was loaded into the container in

order to confirm that the shipping container was used for agricultural commodities.

If requested by FSA, the applicant must provide supporting documentation to

verify the accuracy of information provided on the application, including to substantiate

the number and type of shipping containers, ownership of the commodities, or authority

to act as a designated marketing agent. If any supporting documentation is requested, the

documentation must be submitted to FSA within 30 days from the request or the

application will be disapproved by FSA.

Payment Rates and Calculations

Information and expert opinion from the Port of Oakland and the NWSA

authorities, along with information associated with the logistics movement costs of

different container types, were used to estimate the increased additional movement

logistics costs associated with agricultural containerized exports.

Payments will be calculated based upon the port, whether containers are picked

up or stored, and the type of containers (empty containers versus filled dry or reefer

containers). The CCAP payment rate is on a per container basis as shown in the

following table.

Location and Action

CCAP

Payment Rate

($/Container)

Picked up empty shipping containers:

Port of Oakland ..................................................................

$125

Stored filled shipping containers:

Port of Oakland and NWSA --

Dry containers ..............................................................

$200

Reefer containers ..........................................................

$400

The CCAP payment will be calculated as follows:

Number of containers picked up from or stored in the designated port multiplied

by the respective CCAP payment rate for that type of container.

For example, the owner of agricultural goods that are stored at the NWSA facility

submits an application specifying 10 dry containers and 3 reefer containers for the month

of March 2022. FSA calculates the payment by multiplying 10 × $200 for the dry

containers, and 3 × $400 for the reefer containers, for a total payment of $3,200 for that

month.

The temporary storage of a container should be reported only for the month that

the container was delivered to the designated port terminal for temporary storage even if

the storage period covers parts of more than one month. This is a one-time storage

payment. It does not matter how long a container is stored. Therefore, the same

container and shipment should not be included for a storage payment on an application

more than once.

The applicant may be eligible to receive separate payments for the same

container: once for being picked up empty and later for being temporarily stored at a

designated port. For example, if an almond producer picked up 10 empty containers in

May to be filled with almonds from the designated terminal to provide empty containers

at the Port of Oakland, that almond producer would be eligible to apply for the $125 per

container payment for those 10 empty containers. If that same almond producer then

immediately filled and shipped 5 of those containers directly through the export terminal,

but the remaining 5 containers were filled and delivered to the designated terminal to be

temporarily stored for a few days in June before being drayed to the export terminal and

loaded in a vessel later in June, the almond producer would be eligible to apply for the

$200 per container payment for the temporary storage of 5 containers in June (dry

containers in this example). Only containers picked up or temporarily stored at the

designated storage terminal are eligible, so even if the 5 containers that were exported in

May were held for a few days at the export terminal, they would not be eligible for

CCAP. In this example, FSA calculates the payment by multiplying 10 × $125 for

picking up empty containers in May, and 5 × $200 for the temporary storage of dry

containers in June, for a total payment of $2,250 ($1,250 for May and $1,000 for June).

Provisions Requiring Refund to FSA

In the event that any application for a CCAP payment resulted from erroneous

information reported by the applicant, FSA will recalculate the payment, and the

applicant must refund any excess payment to FSA, including interest to be calculated

from the date of the disbursement to the applicant. If, for whatever reason, FSA

determines that the applicant misrepresented the number and type of shipping containers,

the application will be disapproved, and the applicant must refund the full CCAP

payment to FSA with interest from the date of disbursement. Any required refunds must

be resolved in accordance with 7 CFR part 3.

Miscellaneous Provisions

All applicants must provide the name and address of the entity receiving payment.

Appeal regulations specified in 7 CFR parts 11 and 780 and equitable relief and finality

provisions specified in 7 CFR part 718, subpart D, apply to determinations under CCAP.

The determination of matters of general applicability that are not in response to, or result

from, an individual set of facts in an individual participant’s application for payment are

not matters that can be appealed. Such matters of general applicability include, but are

not limited to, the determination of applicable time periods and the payment calculation

for CCAP.

Participants are required to retain documentation in support of their application

for 3 years after the date of approval. Participants receiving CCAP payments or any

other person that furnishes such information to USDA must permit authorized

representatives of USDA or the Government Accountability Office, during regular

business hours, to enter the participant’s business and to inspect, examine, and to allow

representatives to make copies of books, records, or other items for the purpose of

confirming the accuracy of the information provided by the participant.

Applicants have a right to a decision in response to their application. If an

applicant files a late CCAP application, the application will be considered a request to

waive the deadline.

Requests to waive or modify program provisions, including requests to waive the

deadline, are at the discretion of the Deputy Administrator. The Deputy Administrator

has the authority to waive or modify application deadlines and other requirements or

program provisions not specified in law in cases where the Deputy Administrator

determines it is (1) equitable to do so and (2) where the lateness or failure to meet such

other requirements or program provisions do not adversely affect the operation of CCAP.

Applicants who request to waive or modify CCAP provisions do not have a right

to a decision on those requests, and the Deputy Administrator’s refusal to exercise

discretion on requests to waive or modify CCAP provisions will not be considered an

adverse decision and is, by itself, not appealable.

The regulations governing offsets in 7 CFR part 3 apply to CCAP payments.

In either applying for or participating in CCAP, or both, the applicant is subject to

laws against perjury (including but not limited to 18 U.S.C. 1621). If the applicant

willfully makes and represents as true any verbal or written declaration, certification,

statement, or verification that the applicant knows or believes not to be true, in the course

of either applying for or participating in CCAP, or both, then the applicant may be found

to be guilty of perjury. Except as otherwise provided by law, if guilty of perjury the

applicant may be fined, imprisoned for not more than 5 years, or both, regardless of

whether the applicant makes such verbal or written declaration, certification, statement,

or verification within or outside the United States.

Paperwork Reduction Act Requirements

In compliance with the Paperwork Reduction Act (44 U.S.C. Chapter 35), FSA

is requesting comments from interested individuals and organizations on the

information collection request associated with CCAP. After the 60-day period ends,

the information collection request will be submitted to the Office of Management and

Budget (OMB) for a 3-year approval. To start the CCAP information collection

approval, prior to publishing this notice, FSA received emergency approval from

OMB for 6 months.

Title: Commodity Container Assistance Program (CCAP)

OMB Control Number: 0560-0310.

Type of Request: New Collection.

Abstract: FSA will provide assistance to eligible owners or designated marketing

agents of U.S. agricultural commodities using eligible shipping containers from the Port

of Oakland and designated ports associated with the NWSA. The eligible owners or

designated marketing agents must complete the form FSA-862, CCAP Application for

FSA to qualify for CCAP payments and to calculate the CCAP payments based upon the

port, type of service (temporary storage versus providing empty containers) and the type

of the shipping containers (empty containers or filled dry or reefer containers). FSA may

request additional supporting documents for verification of information on a completed

CCAP Application.

For the following estimated total annual burden on respondents, the formula used

to calculate the total burden hour is the estimated average time per response multiplied by

the estimated total annual responses.

Estimate of Respondent Burden: Public reporting burden for this information

collection is estimated to average 0.33 hours per response to include the time for

reviewing instructions, searching for information, gathering and maintaining the data, and

completing and reviewing the collection of information.

Type of Respondents: Businesses.

Estimated Annual Number of Respondents: 200.

Estimated Number of Responses Per Respondent: 8.

Estimated Total Annual Responses: 1600.

Estimated Average Time Per Response: 0.33.

Estimated Total Annual Burden on Respondents: 528.

We are requesting comments on all aspects of this information collection to

help us to:

(1) Evaluate whether the collection of information is necessary for the proper

performance of the functions of the FSA, including whether the information will have

practical utility;

(2) Evaluate the accuracy of FSA’s estimate of burden including the validity

of the methodology and assumptions used;

(3) Enhance the quality, utility, and clarity of the information to be collected;

and

(4) Minimize the burden of the collection of information on those that are to

respond, including through the use of appropriate automated, electronic, mechanical,

or other technological collection techniques or other forms of information technology.

All comments received in response to this document, including names and

addresses when provided, will be a matter of public record. Comments will be

summarized and included in the submission for Office of Management and Budget

approval.

Environmental Review

The environmental impacts have been considered in a manner consistent with the

provisions of the National Environmental Policy Act (NEPA, 42 U.S.C. 4321- 4347), the

regulations of the Council on Environmental Quality (40 CFR parts 1500-1508), and the

FSA regulations for compliance with NEPA (7 CFR part 799).

The purpose of CCAP is to establish a marketing assistance program to support

agricultural commodity owners of U.S. agricultural commodities for pick up or

temporary storage of eligible shipping containers from the Port of Oakland and NWSA

from March 1, 2022, through December 31, 2022. The limited discretionary aspects of

CCAP do not have the potential to impact the human environment as they are

administrative. Accordingly, these discretionary aspects are covered by the Categorical

Exclusions in 7 CFR 799.31(b)(6)(iii) that applies to price support programs.

No Extraordinary Circumstances (7 CFR 799.33) exist. As such, the

implementation of CCAP and the participation in CCAP do not constitute major Federal

actions that would significantly affect the quality of the human environment, individually

or cumulatively. Therefore, FSA will not prepare an environmental assessment or

environmental impact statement for this action and this document serves as

documentation of the programmatic environmental compliance decision for this federal

action.

Federal Assistance Programs

The title and number of the Federal assistance programs, as found in the

Assistance Listing,

to which this document applies is 10.966, Commodity Container

Assistance Program (CCAP).

USDA Non-Discrimination Policy

In accordance with Federal civil rights law and U.S. Department of Agriculture

(USDA) civil rights regulations and policies, USDA, its Agencies, offices, and

employees, and institutions participating in or administering USDA programs are

prohibited from discriminating based on race, color, national origin, religion, sex, gender

identity (including gender expression), sexual orientation, disability, age, marital status,

family or parental status, income derived from a public assistance program, political

beliefs, or reprisal or retaliation for prior civil rights activity, in any program or activity

conducted or funded by USDA (not all bases apply to all programs). Remedies and

complaint filing deadlines vary by program or incident.

Persons with disabilities who require alternative means of communication for

program information (for example, braille, large print, audiotape, American Sign

Language, etc.) should contact the responsible Agency or USDA TARGET Center at

See https://sam.gov/content/assistance-listings.

(202) 720–2600 (voice and TTY) or (844) 433-2774 (toll-free nationwide). Additionally,

program information may be made available in languages other than English.

To file a program discrimination complaint, complete the USDA Program

Discrimination Complaint Form, AD-3027, found online at

https://www.usda.gov/oascr/how-to-file-a-program-discrimination-complaint and at any

USDA office or write a letter addressed to USDA and provide in the letter all the

information requested in the form. To request a copy of the complaint form, call (866)

632-9992. Submit your completed form or letter to USDA by mail to: U.S. Department

of Agriculture, Office of the Assistant Secretary for Civil Rights, 1400 Independence

Avenue, SW, Washington, DC 20250-9410 or email: [email protected].

USDA is an equal opportunity provider, employer, and lender.

William Marlow,

Acting Administrator,

Farm Service Agency.