U.S. Department of Agriculture

Fall 2017 Statement of Regulatory Priorities

Regulatory reform is one of the cornerstones of the Department of Agriculture's (USDA) strategy for creating a culture of consistent, efficient service to our customers, while reducing burdens and improving efficiency. USDA's regulatory reform efforts, combined with other reform efforts, will make it easier to invest, produce, and build in rural America, which will lead to the creation of jobs and enhanced economic prosperity. To achieve results, USDA is guided by the following comprehensive set of priorities through which the Department, its employees, and external partners will work to identify and eliminate regulatory and administrative barriers and improve business processes to enhance program delivery and reduce burdens on program participants. These priorities include:

Agricultural and Rural Prosperity Task Force: Executive Order 13790 - Promoting Agriculture and Rural Prosperity in America established the inter-Departmental Task Force chaired by Secretary Perdue to identify opportunities for the Federal government to work more effectively together for the benefit of rural Americans. The Task Force is examining barriers to economic prosperity in rural America and how innovation, infrastructure, and technology can assist agriculture and help rural communities thrive. The Task Force is examining regulations across the Federal government to identify obsolete, inefficient, or unnecessary regulations that impede economic growth.

Regulatory Reform Task Force (RRTF): In response to Executive Order 13777 - Enforcing the Regulatory Reform Agenda and Executive Order 13771 - Reducing Regulation and Controlling Regulatory Costs, which set forth expectations for reducing the regulatory burden on the public, the Department has established an internal RRTF to identify outdated regulations for elimination and administrative processes for streamlining. The USDA RRTF is comprised of senior agency managers representing all the major missions of the Department. USDA is also soliciting public comments on recommended reforms through July 2018.

Farm Bill Reform: As the 2014 Farm Bill will soon expire, the Department is evaluating past practices to identify opportunities for policy and technical improvements, and to make research available so Congress can make facts-based, data-driven decisions to ensure a robust agricultural economy and increased opportunities in rural areas. Reauthorization of the Farm Bill provides an opportunity to introduce program reforms to eliminate obsolete and underperforming programs, simplify the administration of programs, and improve program outcomes.

Organizational Reform: To ensure that USDA's programs, agencies, and offices best serve the Department's customers, USDA is implementing organizational changes that are targeted at improving customer service. Through these reforms, USDA is breaking down organizational barriers that have impeded the Department's ability to most effectively and efficiently support its customers across the Nation and around the world. Examples of the organizational reforms include the establishment of an Under Secretary for Trade and Foreign Agricultural Affairs to ensure that American agriculture benefits from new and expanded trade opportunities and the consolidation of administrative functions at the mission area level to eliminate inefficiencies.

These reforms and strategies allow the Department to best support the needs of its customers. Through the implementation of these improvements, USDA will be better positioned to remove obstacles, and give agricultural producers every opportunity to prosper and feed a growing world population. These improvements support the accomplishment of USDA's mission to provide leadership on agriculture, food, natural resources, rural prosperity, nutrition, and related issues through fact-based, data-driven, and customer-focused decisions.

The Department's fall 2017 Statement of Regulatory Priorities reflects the Administration's commitment to regulatory reform and USDA's rigorous implementation of Executive Orders 13777 and 13771.

Executive Order 13777

Executive Order 13777 establishes a Federal policy to lower regulatory burdens on the American people by implementing and enforcing regulatory reform. The RRTF reviewed proposed, pending and existing regulations to determine the deregulatory and regulatory actions to include in the 2017 fall Regulatory Agenda. The RRTF identified over 270 reform initiatives, including 101 deregulatory actions that will save the public from unnecessary regulatory burdens. These actions were further evaluated to determine which ones should be made a priority based on the impact of the proposals and the ability to complete the action in FY 2018.

Executive Order 13777 also directed the Department to seek input from entities significantly affected by Federal regulations. To satisfy this requirement, the Department published a Request for Information (RFI) in the Federal Register on July 17, 2017, seeking public input on identifying regulatory reform initiatives (82 FR 32649). The RFI asked the public to identify regulations, guidance documents, or any other policy documents or administrative processes that need reform, as well as ideas on how to modify, streamline, expand, or repeal such items. While comments to the notice do not bind USDA to any further actions, all submissions will be reviewed and will significantly inform actions to repeal, replace, or modify existing regulations.

Executive Order 13771

Executive Order 13771 directs agencies to eliminate two existing regulations for every new regulation while limiting the total costs associated with an agency's regulations. Specifically, it requires a regulatory two-for-one wherein an agency must propose the elimination of two existing regulations for every new regulation it publishes. Moreover, the costs associated with the new regulation must be completely offset by cost savings brought about by deregulation.

The Department's 2017 fall Regulatory Agenda reflects the Department's commitment to regulatory reform and continues USDA's rigorous implementation of Executive Order 13771. The regulatory agenda identifies 76 rules, of which 44 rules are deregulatory. The remaining 32 rules are not subject to the offsetting or deregulatory requirements of Executive Order 13771. Of the total number of deregulatory actions, USDA has identified 29 final rules that will be completed in FY 2018 and will result in a cost savings. Although we have not estimated the savings for 26 of these actions, they are considered deregulatory actions that USDA will implement to meet the direction that an agency issues twice as many Executive Order 13771 deregulatory actions as new Executive Order 13771 regulatory actions.

USDA's 2017 fall Statement of Regulatory Priorities was developed to lower regulatory burdens on the American people by implementing and enforcing regulatory reform. These regulatory priorities will contribute to the mission of the Department, the achievement of the long-term goals the Department aims to accomplish. Highlights of how the Department's regulatory reform efforts contribute to the accomplishment of the Department's strategic goals include the following:

A primary goal of the Department is to ensure that programs are delivered efficiently, effectively, with integrity, and a focus on customer service: To achieve this, USDA is working to leverage the strength and talent of USDA employees with continued dedication to data-driven enterprise solutions through collaborative governance and human capital management strategies centered on accountability and professional development. USDA will reduce regulatory and administrative burdens hindering agencies from reaching the greatest number of stakeholders. Improved customer service and employee engagement within USDA will create a more effective and accessible organization for all stakeholders.

Streamline and expand public engagement in the development and modification of national forest management policies: This final rule will provide greater opportunity for public participation in the formulation of standards, criteria and guidelines applicable to Forest Service programs by: (1) expanding the scope of documents subject to such review; (2) utilizing technologies that were not available when these regulations were last amended in 1984 to ensure a broader swath of the interested public is notified of opportunities to review and comment on policy changes; and (3) increasing the efficiency of the directive revision process to reduce administrative costs and permit more frequent and timely updates. For more information about this rule, see RIN 0596-AC65.

Streamline National Environmental Policy Act (NEPA) implementing procedures: The Animal and Plant Health Inspection Service (APHIS) and the Forest Service are adjusting procedures that set out the NEPA implementing procedures for each agency based on accumulated experience of the agencies. APHIS will issue a proposed rule to incorporate scientific data accumulated since 1995 on the environmental impact of covered actions, clarify categories of action for which APHIS would normally complete an environmental impact statement or an environmental assessment for an action, expand the list of actions subject to categorical exclusion from further environmental documentation, and set out an environmental documentation process for use in emergencies. For more information about this rule, see RIN 0579-AC60. The Forest Service will publish a proposed rule to eliminate outdated requirements and revise aspects of the analysis framework, scoping and public engagement, and determining significance. For more information about this rule, see RIN 0596-AD31.

Establish de minimis exemptions for applying for animal licenses and renewals under the Animal Welfare Act (AWA): The Animal and Plant Health Inspection Service will issue a final rule to exempt entities with a small number of animals from the requirement to obtain an AWA license. This action will reduce regulatory burden on small entities while also allowing APHIS to target enforcement efforts where they are most needed. For more information about this rule, see RIN 0579-AD99. Coupled with this de minimis rule, APHIS is considering a proposed rule that would promote compliance with the AWA by (1) reducing licensing fees and (2) strengthening existing safeguards that prevent an individual whose license has been suspended or revoked, or who has a history of noncompliance, from obtaining a license or working with regulated animals. For more information about this rule, see RIN 0579-AE35

Establish de minimis levels for enforcing Lacey Act requirements: The Food, Conservation, and Energy Act of 2008 amended the Lacey Act to provide, among other things, that importers submit a declaration at the time of importation for certain plants and plant products. The declaration requirements of the Lacey Act became effective on December 15, 2008, and enforcement of those requirements is being phased in. APHIS will propose an exception to the declaration requirements for products containing composite plant materials, and establish an exception to the declaration requirement for products containing a minimal amount of plant materials. Both actions would relieve the burden on importers, while continuing to ensure that the declaration requirement fulfills the purposes of the Lacey Act. For more information about this rule, see RIN 0579-AD44.

Reduce the time it takes to issue housing loans. The Housing Opportunity through Modernization Act of 2016 permits the Secretary to delegate authority to approve and execute single family housing loan guarantees directly to preferred lenders, those lenders whose loans have performed well and who have demonstrated strong underwriting capability. To take advantage of this authority, the Rural Housing Service (RHS) will propose to delegate loan approval authority to preferred lenders participating in the Single Family Housing Guaranteed Loan Program. Preferred lenders would be responsible for certifying that both the applicant and property meet all program requirements and eligible for the guarantee. The revisions are expected to shorten the loan approval and processing time by up to 12 days. For more information about this rule, see RIN 0575-AD08

The Department is making it a priority to maximize the ability of American agricultural producers to prosper by feeding and clothing the world: A strong and prosperous agricultural sector is essential to the well-being of the overall U.S. economy. America's farmers and ranchers ensure a safe and reliable food and fuel supply and support job growth and economic development. To maintain a strong agricultural economy, USDA will support farmers in starting and maintaining profitable farm and ranch businesses, as well as offer support to producers affected by natural disasters. The Department will continue to work to create new markets and support a competitive agricultural system by reducing barriers that inhibit agricultural opportunities and economic growth.

Withdrawal of Proposed Rule Regarding the Introduction of Certain Genetically Engineered Organisms: APHIS withdrew its proposed rule to revise the Department's biotechnology regulations and will re-engage with stakeholders to determine the most effective, science-based approach for regulating the products of modern biotechnology while protecting plant health. APHIS issued the proposed rule on January 19, 2017, and received 208 public comments. APHIS will maintain and follow current biotechnology regulations for safely handling the importation, interstate movement, and environmental release of genetically engineered organisms as we re-engage with stakeholders to determine the most effective approach for regulating these products. For more information about this rule, see RIN 0579-AE15.

Implement the National Bioengineered Food Disclosure Standard: This action is mandated by the National Bioengineered Food Disclosure Standard (Law), which requires USDA to develop a national standard and the procedures for its implementation within two years of the Law's enactment. Pursuant to the law, AMS will propose requirements that, if finalized, will serve as a national mandatory bioengineered food disclosure standard for bioengineered food and food that may be bioengineered. For more information about this rule, see RIN 0581-AD54.

Withdrawal of the Scope of Sections 202(a) and (b) of the Packers and Stockyards Act (Act) interim final rule: On December 20, 2016, the Grain Inspection, Packers and Stockyards Administration (GIPSA) published an interim rule addressing the scope of sections 202(a) and (b) of the Act, which enumerate unlawful practices under the Act. The interim final rule was originally scheduled to become effective on February 21, 2017. The effective date of the final rule was delayed twice until October 19, 2017. On April 12, 2017, GIPSA published a proposed rule requesting comments whether the final rule should be allowed to go into effect. On October 18, 2017, GIPSA published a final rule withdrawing the December 20, 2016, interim final rule, ending the regulatory action. The interim final rule was found to conflict with case law in several U.S. Court of Appeals Circuits, which Congress has declined to overturn through legislation. Additionally, the interim final rule was improperly issued without adequate notice and opportunity for comment. For more information about this rule, see RIN 0580-AB28.

Re-evaluate the Organic Livestock and Poultry Program final rule: Because of significant policy and legal issues within the final rule (0581-AD44), the public was asked to comment on which of the following four actions they believed would be best for USDA to take with regard to the disposition of the final rule (0581-AD44). The options were: Let the rule become effective on November 14, 2017; Suspend the rule indefinitely; Delay the effective date of the rule further, beyond the effective date of November 14, 2017; Withdraw the rule so that USDA would not pursue implementation of the rule. Comments were received on all four options. Based on the content of the comments received and the evaluation those comments generated, the option to delay the effective date further was chosen. For more information about this rule, see RIN 0581-AD74. USDA plans to propose the final disposition of 0581-AD44 in December 2017. For more information about this rule, see RIN 0581-AD75.

Updating plant pest regulations: APHIS is planning to update regulations regarding the movement of plant pests to establish criteria governing the movement and environmental release of biological control organisms, and to establish regulations allowing the importation and movement in interstate commerce of certain types of plant pests without restriction by granting exceptions from permitting requirements for those pests. These updates would include the movement of soil. This action would clarify the factors that would be considered when assessing the risks associated with the movement of certain organisms and facilitates the movement of regulated organisms and articles in a manner that also protects U.S. agriculture. For more information about this rule, see RIN 0579-AC98.

Establishing a performance standard for authorizing the importation and interstate movement of fruits and vegetables: APHIS would broaden the existing performance standard to provide for consideration of all new fruits and vegetables for importation into the United States using a notice-based process rather than through proposed and final rules. Likewise, APHIS would propose an equivalent revision of the performance standard governing the interstate movements of fruits and vegetables from Hawaii and the U.S. territories (Guam, Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands) and the removal of commodity-specific phytosanitary requirements from those regulations. This action will allow for the consideration of requests to authorize the importation or interstate movement of new fruits and vegetables in a manner that enables a more flexible and responsive regulatory approach to evolving pest situations in both the United States and exporting countries. It will not, however, alter the science-based process in which the risk associated with importation or interstate movement of a given fruit or vegetable is evaluated or the manner in which risks associated with the importation or interstate movement of a fruit or vegetable are mitigated. For more information about this rule, see RIN 0579-AD71.

Providing all Americans access to a safe, nutritious, and secure food supply is USDA's most important responsibility, and it is one undertaken with great seriousness. USDA has critical roles in preventing foodborne illness and protecting public health, while ensuring Americans have access to food and healthful diet. The Department will continue to prevent contamination and limit foodborne illness by expanding its modernization of food inspection systems, and USDA's research, education, and extension programs will continue to provide information, tools, and technologies about the causes of foodborne illness and its prevention. USDA will continue to develop partnerships that support best practices in implementing effective nutrition assistance programs that ensure eligible populations have access to programs that support their food needs.

Increase flexibilities provided to school lunch program operators in meeting nutrition requirements: The Food and Nutrition Service (FNS) plans to issue an interim final rule that provides flexibilities consistent with those currently available to Program operators participating in the Child Nutrition Programs beginning in School Year 2018-2019. These flexibilities include: (1) providing operators the option to offer flavored, low-fat (1 percent fat) milk in the Child Nutrition Programs; (2) extending the State agencies' option to allow individual school food authorities to include grains that are not whole grain-rich in the weekly menu offered under the National School Lunch Program (NSLP) and School Breakfast Program (SBP); and (3) revising the sodium reduction timeline for the NSLP and SBP. For more information about this rule, see RIN 0584-AE53.

Improve effectiveness and efficiency of moving individuals into work: The Food and Nutrition Act of 2008 (FNA) establishes a time limit for participation in SNAP of three months in three years for able-bodied adults without children who are not working. FNA allows states to waive the time limit under certain circumstances. FNS would request public input on a proposed framework for modifying ABAWD time-limit waivers with the goal of moving individuals to work as the best solution for poverty, and to advance this goal consistent with the structure and the intent of the act. For more information about this rule, see RIN 0584-AE57.

Provide regulatory flexibility for retailers in the Supplemental Nutrition Assistance Program (SNAP): FNS will issue a proposed rule to modify the definition of the term "variety" as it pertains to the stocking requirements for certain SNAP authorized retail food stores to increase the number of items that qualify as acceptable varieties in the four staple food categories, meat, poultry, fish, and dairy products. This proposed change will provide retailers with more flexibility in meeting the enhanced SNAP eligibility requirements of the 2016 final rule and meet the requirements expressed in the Consolidated Appropriation Act of 2017. For more information about this rule, see RIN 0584-AE61.

Reduce the reporting burden for nutrition program operators: FNS will withdraw the interim final rule provisions of the SNAP: Certification, Eligibility, and Employment and Training Provisions of the Food, Energy and Conservation Act of 2008 rule published on January 6, 2017. The interim final rule portion increased requirements for Group Living Arrangements and Drug and Alcohol Treatment Centers. Comments received on these changes indicated that the regulatory change presented significant technical and administrative challenges. For more information about this rule, see RIN 0584-AE54.

Modernize swine slaughter inspection: The Food Safety and Inspection Service (FSIS) is proposing to establish a voluntary New Swine Inspection System (NSIS) for market-hog slaughter establishments, and mandatory provisions for all swine slaughtering establishments (i.e., including those that also slaughter roaster swine, sows, and boars). NSIS will provide for increased offline inspection activities that are more directly related to food safety resulting in greater compliance with sanitation and Hazard Analysis and Critical Control Point (HACCP) regulations and reduce the risk of foodborne illness. NSIS would also provide incentives to establishments to improve their processing methods and to develop more efficient slaughter and dressing technologies. Additionally, FSIS is considering requiring establishments to implement written sanitary dressing plans to prevent contamination of carcasses throughout the slaughter and dressing operation; modernizing process control sampling programs; and sampling the slaughter environment for microbiological contamination. For more information about this rule, see RIN 0583-AD62.

Modernize egg products inspection: FSIS is proposing to replace current regulations with HACCP Systems and Sanitation Standard Operating Procedures (SOPs), consistent with HACCP and Sanitation SOP requirements in the meat and poultry products inspection regulations. In addition, FSIS is proposing to remove the current requirements for prior approval by FSIS of egg products plant drawings, specifications, and equipment prior to their use in official plants, provide for the generic labeling of egg products, and require safe handling labels on shell eggs and egg products. The agency is also proposing to move from continuous inspection to daily inspection of establishments. For more information about this rule, see RIN 0583-AC58.