new entrant
(2) Beet sugar (A) In general Except as otherwise provided in this paragraph and sections 1359cc(g) , 1359ee(b) , and 1359ff(b) of this title , the Secretary shall make allocations for beet sugar among beet sugar processors for each crop year that allotments are in effect on the basis of the adjusted weighted average quantity of beet sugar produced by the processors for each of the 1998 through 2000 crop years, as determined under this paragraph. (B) Quantity The quantity of an allocation made for a beet sugar processor for a crop year under subparagraph (A) shall bear the same ratio to the quantity of allocations made for all beet sugar processors for the crop year as the adjusted weighted average quantity of beet sugar produced by the processor (as determined under subparagraphs (C) and (D)) bears to the total of the adjusted weighted average quantities of beet sugar produced by all processors (as so determined). (C) Weighted average quantity Subject to subparagraph (D), the weighted quantity of beet sugar produced by a beet sugar processor during each of the 1998 through 2000 crop years shall be (as determined by the Secretary)— (i) in the case of the 1998 crop year, 25 percent of the quantity of beet sugar produced by the processor during the crop year; (ii) in the case of the 1999 crop year, 35 percent of the quantity of beet sugar produced by the processor during the crop year; and (iii) in the case of the 2000 crop year, 40 percent of the quantity of beet sugar produced by the processor (including any quantity of sugar received from the Commodity Credit Corporation) during the crop year. (D) Adjustments (i) In general The Secretary shall adjust the weighted average quantity of beet sugar produced by a beet sugar processor during the 1998 through 2000 crop years under subparagraph (C) if the Secretary determines that the processor— (I) during the 1996 through 2000 crop years, opened a sugar beet processing factory; (II) during the 1998 through 2000 crop years, closed a sugar beet processing factory; (III) during the 1998 through 2000 crop years, constructed a molasses desugarization facility; or (IV) during the 1998 through 2000 crop years, suffered substantial quality losses on sugar beets stored during any such crop year. (ii) Quantity The quantity of beet sugar produced by a beet sugar processor under subparagraph (C) shall be— (I) in the case of a processor that opened a sugar beet processing factory, increased by 1.25 percent of the total of the adjusted weighted average quantities of beet sugar produced by all processors during the 1998 through 2000 crop years (without consideration of any adjustment under this subparagraph) for each sugar beet processing factory that is opened by the processor; (II) in the case of a processor that closed a sugar beet processing factory, decreased by 1.25 percent of the total of the adjusted weighted average quantities of beet sugar produced by all processors during the 1998 through 2000 crop years (without consideration of any adjustment under this subparagraph) for each sugar beet processing factory that is closed by the processor; (III) in the case of a processor that constructed a molasses desugarization facility, increased by 0.25 percent of the total of the adjusted weighted average quantities of beet sugar produced by all processors during the 1998 through 2000 crop years (without consideration of any adjustment under this subparagraph) for each molasses desugarization facility that is constructed by the processor; and (IV) in the case of a processor that suffered substantial quality losses on stored sugar beets, increased by 1.25 percent of the total of the adjusted weighted average quantities of beet sugar produced by all processors during the 1998 through 2000 crop years (without consideration of any adjustment under this subparagraph). (E) Permanent termination of operations of a processor If a processor of beet sugar has been dissolved, liquidated in a bankruptcy proceeding, or otherwise has permanently terminated operations (other than in conjunction with a sale or other disposition of the processor or the assets of the processor), the Secretary shall— (i) eliminate the allocation of the processor provided under this section; and (ii) distribute the allocation to other beet sugar processors on a pro rata basis. (F) Sale of all assets of a processor to another processor If a processor of beet sugar (or all of the assets of the processor) is sold to another processor of beet sugar, the Secretary shall transfer the allocation of the seller to the buyer unless the allocation has been distributed to other sugar beet processors under subparagraph (E). (G) Sale of factories of a processor to another processor (i) Effect of sale Subject to subparagraphs (E) and (F), if 1 or more factories of a processor of beet sugar (but not all of the assets of the processor) are sold to another processor of beet sugar during a crop year, the Secretary shall assign a pro rata portion of the allocation of the seller to the allocation of the buyer to reflect the historical contribution of the production of the sold 1 or more factories to the total allocation of the seller, unless the buyer and the seller have agreed upon the transfer of a different portion of the allocation of the seller, in which case, the Secretary shall transfer that portion agreed upon by the buyer and seller. (ii) Application of allocation The assignment of the allocation under clause (i) shall apply— (I) during the remainder of the crop year for which the sale described in clause (i) occurs; and (II) during each subsequent crop year. (iii) Use of other factories to fill allocation If the assignment of the allocation under clause (i) to the buyer for the 1 or more purchased factories cannot be filled by the production of the 1 or more purchased factories, the remainder of the allocation may be filled by beet sugar produced by the buyer from other factories of the buyer. (H) New entrants starting production, reopening, or acquiring an existing factory with production history (i) Definition of new entrant (I) In general In this subparagraph, the term “new entrant” means an individual, corporation, or other entity that— (aa) does not have an allocation of the beet sugar allotment under this subpart; (bb) is not affiliated with any other individual, corporation, or entity that has an allocation of beet sugar under this subpart (referred to in this clause as a “third party”); and (cc) will process sugar beets produced by sugar beet growers under contract with the new entrant for the production of sugar at the new or re-opened factory that is the basis for the new entrant allocation. (II) Affiliation For purposes of subclause (I)(bb), a new entrant and a third party shall be considered to be affiliated if— (aa) the third party has an ownership interest in the new entrant; (bb) the new entrant and the third party have owners in common; (cc) the third party has the ability to exercise control over the new entrant by organizational rights, contractual rights, or any other means; (dd) the third party has a contractual relationship with the new entrant by which the new entrant will make use of the facilities or assets of the third party; or (ee) there are any other similar circumstances by which the Secretary determines that the new entrant and the third party are affiliated. (ii) Allocation for a new entrant that has constructed a new factory or reopened a factory that was not operated since before 1998 If a new entrant constructs a new sugar beet processing factory, or acquires and reopens a sugar beet processing factory that last processed sugar beets prior to the 1998 crop year and there is no allocation currently associated with the factory, the Secretary shall— (I) assign an allocation for beet sugar to the new entrant that provides a fair and equitable distribution of the allocations for beet sugar so as to enable the new entrant to achieve a factory utilization rate comparable to the factory utilization rates of other similarly-situated processors; and (II) reduce the allocations for beet sugar of all other processors on a pro rata basis to reflect the allocation to the new entrant. (iii) Allocation for a new entrant that has acquired an existing factory with a production history (I) In general If a new entrant acquires an existing factory that has processed sugar beets from the 1998 or subsequent crop year and has a production history, on the mutual agreement of the new entrant and the company currently holding the allocation associated with the factory, the Secretary shall transfer to the new entrant a portion of the allocation of the current allocation holder to reflect the historical contribution of the production of the 1 or more sold factories to the total allocation of the current allocation holder, unless the new entrant and current allocation holder have agreed upon the transfer of a different portion of the allocation of the current allocation holder, in which case, the Secretary shall transfer that portion agreed upon by the new entrant and the current allocation holder. (II) Prohibition In the absence of a mutual agreement described in subclause (I), the new entrant shall be ineligible for a beet sugar allocation. (iv) Appeals Any decision made under this subsection may be appealed to the Secretary in accordance with section 1359ii of this title .