[Federal Register Volume 62, Number 62 (Tuesday, April 1, 1997)]
[Rules and Regulations]
[Pages 15355-15362]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-8346]



 ========================================================================
 Rules and Regulations
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains regulatory documents 
 having general applicability and legal effect, most of which are keyed 
 to and codified in the Code of Federal Regulations, which is published 
 under 50 titles pursuant to 44 U.S.C. 1510.
 
 The Code of Federal Regulations is sold by the Superintendent of Documents. 
 Prices of new books are listed in the first FEDERAL REGISTER issue of each 
 week.
 
 ========================================================================
 

  Federal Register / Vol. 62, No. 62 / Tuesday, April 1, 1997 / Rules 
and Regulations  

[[Page 15355]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 916 and 917

[Docket No. FV96-916-3-IFR]


Nectarines and Peaches Grown in California; Revision of Handling 
Requirements for Fresh Nectarines and Peaches

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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

SUMMARY: This interim final rule revises the handling requirements for 
California nectarines and peaches by modifying the grade, size, 
maturity, and container requirements for fresh shipments of these 
fruits, beginning with 1997 season shipments. This rule enables 
handlers to continue shipping fresh nectarines and peaches meeting 
consumer needs in the interest of producers, handlers, and consumers of 
these fruits.

DATES: Effective April 1, 1997. Comments which are received by May 1, 
1997, will be considered prior to issuance of any final rule.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this rule. Comments must be sent in triplicate to the Docket 
Clerk, Fruit and Vegetable Division, AMS, USDA, PO Box 96456, Room 
2523-S, Washington, DC 20090-6456; or by facsimile at 202-720-5698. All 
comments should reference the docket number and the date and page 
number of this issue of the Federal Register and will be made available 
for public inspection at the office of the Docket Clerk during regular 
business hours.

FOR FURTHER INFORMATION CONTACT: Terry Vawter, Marketing Specialist, 
California Marketing Field Office, Marketing Order Administration 
Branch, Fruit and Vegetable Division, AMS, USDA, 2202 Monterey Street, 
Suite 102B, Fresno, California, 93721; telephone: (209) 487-5901; or 
Kenneth Johnson, Marketing Specialist, Marketing Order Administration 
Branch, Fruit and Vegetable Division, AMS, USDA, PO Box 96456, Room 
2523-S, Washington, DC 20090-6456; telephone: (202) 720-2861. Small 
businesses may request information on compliance with this regulation 
by contacting: Jay Guerber, Marketing Order Administration Branch, 
Fruit and Vegetable Division, AMS, USDA, PO Box 96456, room 2523-S, 
Washington, DC 20090-6456; telephone (202) 720-2491; Fax # (202) 720-
5698.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
Agreement and Marketing Order Nos. 916 and 917 (7 CFR parts 916 and 
917) regulating the handling of nectarines and peaches grown in 
California, hereinafter referred to as the ``orders''. The orders are 
effective under the Agricultural Marketing Agreement Act of 1937, as 
amended (7 U.S.C. 601-674), hereinafter referred to as the ``Act''.
    The Department of Agriculture (Department) is issuing this rule in 
conformance with Executive Order 12866.
    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. This rule is not intended to have retroactive effect. 
This rule will not preempt any State or local laws, regulations, or 
policies, unless they present an irreconcilable conflict with this 
rule.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under section 608c(15)(A) of the 
Act, any handler subject to an order may file with the Secretary a 
petition stating that the order, any provision of the order, or any 
obligation imposed in connection with the order is not in accordance 
with law and request a modification of the order or to be exempted 
therefrom. A handler is afforded the opportunity for a hearing on the 
petition. After the hearing the Secretary would rule on the petition. 
The Act provides that the district court of the United States in any 
district in which the handler is an inhabitant, or has his or her 
principal place of business, has jurisdiction to review the Secretary's 
ruling on the petition, provided an action is filed not later than 20 
days after the date of the entry of the ruling.
    Under the orders, grade, size, maturity, container and pack 
requirements are established for fresh shipments of California 
nectarines and peaches. Such requirements are in effect on a continuing 
basis. The Nectarine Administrative Committee (NAC) and the Peach 
Commodity Committee (PCC) met December 4, 1996, and unanimously 
recommended that these handling requirements be revised prior to the 
1997 season, which begins April 1. The changes (1) authorize continued 
use of a container first used in 1996; (2) authorize shipments of ``CA 
Utility'' quality fruit during the 1997 season; (3) clarify container 
tolerances for mature and well matured fruit; and (4) revise varietal 
maturity and size requirements to reflect recent growing conditions.
    The committees meet prior to and during each season to review the 
rules and regulations effective on a continuous basis for California 
nectarines and peaches under the orders. Committee meetings are open to 
the public, and interested persons may express their views at these 
meetings. The Department reviews committee recommendations and 
information, as well as information from other sources, and determines 
whether modification, suspension, or termination of the rules and 
regulations would tend to effectuate the declared policy of the Act.

Container Requirements (Nectarines and Peaches)

    Sections 916.52 and 917.41 of the nectarine and peach orders, 
respectively, provide authority to fix the size, capacity, weight, 
dimensions, markings, or pack of the container or containers that may 
be used in the packaging and handling of these fruits. Section 916.350 
specifies container and pack requirements for fresh nectarine 
shipments. Section 917.442 specifies container and pack requirements 
for fresh peach shipments. Included in these sections are requirements 
that all containers be marked with specific information (e.g., the name 
of the handler, and the maturity, size, and variety of the fruit) and 
that such markings be applied to the outside ends of the container.
    Prior to the 1996 season, the NAC and PCC recommended that a new 
container, permitted to be marked on its lid, be approved for nectarine 
and peach

[[Page 15356]]

shipments during the 1996 season only. The revised requirements became 
effective on April 1, 1996. The NAC and PCC then reviewed the impact of 
the use of this container at the conclusion of the 1996 season.
    The new container is recyclable and reusable. The design of some 
styles of the container, which has cooling slots in all of its sides, 
is such that the markings cannot be placed on the outside ends of the 
container. Furthermore, in order to ensure and facilitate its reuse, 
container markings on the permanent outside ends of the new container 
are not desirable. Instead, placement of markings on the disposable lid 
is preferable. Thus, markings on the new container have been permitted 
for either the lid or the outside ends.
    In the 1996 season, approximately 450,000 recyclable, reusable 
boxes were used by nectarine and peach handlers. This represents 
approximately 1 percent of the total number of packages of nectarines 
and peaches shipped in that season. Users of the recyclable, reusable 
boxes reported good acceptance by retailers and expect increased demand 
for their use in the coming years. Industry sources reported the boxes 
will likely be used for other commodities as awareness and acceptance 
of the boxes increase. It was also noted that the nectarine and peach 
industries could improve their competitive edge by continued and 
increased use of the new recyclable, reusable plastic box.
    The NAC and PCC believe that continuing to permit container 
markings to be placed either on the container lid or the outside ends 
will continue to facilitate the use of this plastic, reusable, and 
recyclable container. Authorizing the continued use of this container 
will allow handlers to reduce their container costs through the 
continued reuse of the container. Such reduced container costs could 
result in increased returns to producers as well.
    When the container requirements for nectarines and peaches were 
changed on April 1, 1996, the revised provisions did not specify that 
the change was effective only for the 1996 season. Thus, no changes in 
the regulatory text of Secs. 916.350 and 917.442 are necessary.

Quality Requirements (Nectarines and Peaches)

    Sections 916.52 and 917.41 authorize the establishment of grade and 
quality requirements for nectarines and peaches. Prior to the 1996 
season, Sec. 916.356 required nectarines to meet a modified U.S. No. 1 
grade. Specifically, nectarines were required to meet U.S. No. 1 grade 
requirements, except there was a slightly tighter requirement for 
scarring and a more liberal allowance for misshapened fruit. Under 
Sec. 917.459, peaches were also required to meet the requirements of a 
U.S. No. 1 grade, except there was a more liberal allowance for open 
sutures not serious damage.
    This rule revises paragraph (a)(1) of Sec. 916.356 and paragraph 
(a)(1) of Sec. 917.459 to permit shipments of nectarines and peaches 
meeting ``CA Utility'' quality requirements during the 1997 season. 
(``CA Utility'' fruit is lower in quality than that meeting the 
modified U.S. No. 1 grade requirements.) Shipments of nectarines and 
peaches meeting ``CA Utility'' quality requirements were first 
permitted during the 1996 season for that season only. By unanimous 
vote, the NAC and PCC recommended that fruit meeting ``CA Utility'' 
quality requirements be permitted to be shipped for an additional year. 
The NAC and PCC will continue to monitor retailer and consumer 
perceptions of ``CA Utility'' nectarines and peaches in-house to 
determine whether such fruit should continue to be marketed.
    Preliminary studies conducted by the NAC and PCC indicate that some 
consumers, retailers, and foreign importers found the lower quality 
fruit acceptable in some markets. Shipments of ``CA Utility'' 
nectarines represented 1.1 percent of all nectarine shipments, or 
approximately 210,000 boxes in 1996. Shipments of ``CA Utility'' 
peaches represented 1.9 percent of all peach shipments in 1996, or 
approximately 365,000 boxes.
    Dr. Dennis Nef, California State University, Fresno, studied 
samples of culled fruit at handler facilities in the 1995 and 1996 
seasons. Results from the 1996 season were compared to the 1995 season. 
Preliminary data indicates that a smaller percentage of culled 
nectarines and peaches met the marketing order grade (modified U.S. No. 
1) and size requirements in 1996 than in 1995. In 1995, approximately 8 
percent of the nectarines in the cull stream met those requirements, 
while in 1996, approximately 1 percent of the nectarines in the cull 
stream met those requirements. In 1995, approximately 7 percent of the 
peaches in the cull stream met the order's grade and size requirements, 
while in 1996, approximately 1 percent of the peaches in the cull 
stream met those requirements. (The ``cull stream'' includes all fruit 
which is removed from the packing line by the handler's quality control 
personnel and not placed in a container for shipment.) The decrease in 
the amount of fruit in the cull stream seems to indicate a greater 
utilization of available fruit rather than its disposal. With the 
option of packing ``CA Utility'' quality fruit, it appears that the 
handlers' quality control personnel were less inclined to be overly 
critical and to exclude acceptable modified U.S. No. 1 fruit. However, 
not all of this increased utilization can be attributed to the 
implementation of ``CA Utility'' quality requirements. The 1995 season, 
which was the first in which cull data was obtained, was plagued by 
adverse weather and hail storms. The damage inflicted by the storms 
created conditions which decreased the quality of available nectarines 
and peaches and increased somewhat the percentage of fruit in the cull 
stream which would have met marketing order requirements. It is 
probable that the implementation of ``CA Utility'' quality requirements 
increased the utilization of fruit which might have been disposed of 
otherwise. Such utilization benefitted producers, handlers, and 
consumers. For that reason, the NAC and PCC recommended that ``CA 
Utility'' quality requirements be continued for the 1997 season. The 
NAC and PCC will continue to monitor the impact of shipping ``CA 
Utility'' nectarines and peaches to determine whether such shipments 
continue to be in the interests of producers, handlers, and consumers.
    In conforming changes, paragraph (d) of Sec. 916.350 and paragraph 
(d) of Sec. 917.442 are revised to continue the requirement that ``CA 
Utility'' quality fruit be labeled as such. This marking requirement 
was in effect during the 1996 season, and is intended to enable 
customers to differentiate between the different qualities of available 
fruit.

Clarification of Container Tolerances (Nectarines and Peaches)

    As previously indicated, the orders require that, except for ``CA 
Utility'' quality fruit, nectarines or peaches meet most of the 
requirements of the U.S. No. 1 grade; these include the requirement 
that such fruit is ``mature.'' (``CA Utility'' fruit is also required 
to be ``mature.'') A second, higher maturity standard of ``well 
matured'' is also defined in the rules and regulations for both 
nectarines and peaches.
    For those grade factors included in the U.S. Standards for Grades 
of Nectarines or Peaches (standards), tolerances are provided for fruit 
that fail to meet those factors to allow for variations incident to 
proper grading and handling. Tolerances are specified for both entire 
lots of fruit and for individual containers in the lot.
    The container tolerances in the standards are applicable to both 
mature and well-matured nectarines and

[[Page 15357]]

peaches since those tolerances are not modified by the orders' rules 
and regulations. However, the NAC and PCC voted to clarify the 
requirements for affected parties. Clarifying these container 
tolerances will not have a regulatory impact on nectarine and peach 
handlers because these tolerances are the same as those applied in past 
seasons.

Maturity Requirements (Nectarines and Peaches)

    Both orders provide (in Secs. 916.52 and 917.41) authority to 
establish maturity requirements. The minimum maturity level currently 
specified for nectarines and peaches is ``mature'' as defined in the 
standards. Additionally, both orders' rules and regulations provide for 
a higher, ``well matured'' classification. For most varieties, ``well 
matured'' fruit determinations are made using maturity guides (e.g., 
color chips). These maturity guides are reviewed each year by the 
Shipping Point Inspection Service (SPI) to determine whether they need 
to be changed based on the most recent information available on the 
characteristics of each variety.
    These maturity guides established under the handling regulations of 
the California tree fruit marketing orders have been codified in the 
Code of Federal Regulations prior to 1996. Those guides appeared in 
Table 1 of Secs. 916.356 and 917.459, respectively. Those tables were 
inadvertently removed in 1996. This rule adds those Tables to the 
handling regulations under the respective marketing orders.
    The requirements in the 1997 handling regulation are the same as 
those that appeared in the 1996 handling regulation with a few 
exceptions. Those exceptions are explained in this rule.

Nectarines

    Requirements for ``well matured'' nectarines are specified in 
paragraph (a)(1) of Sec. 916.356. This rule adds TABLE 1 of paragraph 
(a)(1)(i) of Sec. 916.356 for nectarines to add maturity guides for 12 
nectarine varieties. Specifically, an addition to the maturity guides 
was recommended for Earliglo, May Jim, Red Glo, Royal Glo, and Zee 
Grand nectarine varieties at a maturity guide of I; Big Jim, Early Red 
Jim, Late Red Jim, May Lion, and Red Fred nectarine varieties at a 
maturity guide of J; and Kay Diamond and Ruby Diamond nectarine 
varieties at a maturity guide of L.
    TABLE 1 of paragraph (a)(1)(i) of Sec. 916.356 contains the current 
maturity guides for the following eight nectarine varieties: Autumn 
Delight, Fairlane, Moon Grand, Red Diamond, Sparkling June, Spring 
Diamond, Summer Diamond, and Summer Lion. The current maturity guide 
for these eight varieties is M, which is changed to L. The M maturity 
guide is no longer deemed suited to nectarine varieties currently in 
production by SPI, while the L maturity guide more accurately reflects 
the background color of modern nectarine varieties under production at 
this time. For this reason, the NAC recommended these maturity 
requirements based on SPI's continuing review of individual maturity 
characteristics and identification of the appropriate maturity guide 
corresponding to the ``well matured'' level of maturity for nectarine 
varieties in production.
    Paragraph (a)(1) of Sec. 916.356 is revised to remove 14 nectarine 
varieties which are no longer in production. The NAC routinely reviews 
the status of nectarine varieties listed in these maturity guides. The 
most recent review revealed that 13 of the nectarine varieties 
currently listed in the maturity guide have not been in production 
since the 1993 season. Typically, the NAC recommends removing a variety 
after non-production for three seasons or if trees of that variety are 
known to have been pulled out because a maturity guide for an obsolete 
variety is no longer needed. The varieties removed include the Clinton-
Strawberry, Desert Dawn, Early Star, Gee Red, Granderli, Hi Red, 
Larry's Grand, Late Tina Red, Mayfair, May Red, Red June, Stan Grand, 
and 61-61 nectarine varieties.
    TABLE 1 of paragraph (a)(1)(i) of Sec. 916.356 corrects the 
identification of the Red Lion nectarine variety. The name ``Red Lion'' 
has been changed to ``August Lion.'' For that reason, all references to 
Red Lion have been changed to August Lion. In addition, three nectarine 
varieties are currently incorrectly identified as June Glo, May Glo, 
and Spring Brite. The correct spelling of these three varieties is 
Juneglo, Mayglo, and Spring Bright, respectively.

Peaches

    Paragraph (a)(1) of Sec. 917.459 specifies maturity requirements 
for fresh peaches being inspected and certified as being ``well 
matured.''
    TABLE 1 of paragraph (a)(1)(i) of Sec. 917.459 includes maturity 
guides for the Kingcrest peach variety to be regulated at the H 
maturity guide, the Red Dancer peach variety to be regulated at the I 
maturity guide, and the Early Elegant Lady peach variety to be 
regulated at the L maturity guide.
    TABLE 1 of paragraph (a)(1)(i) of Sec. 917.459 contains the 
maturity guide assignment for the Summer Lady peach variety from the M 
maturity guide to the L maturity guide. The M maturity guide is no 
longer deemed suited to peach varieties currently in production by SPI, 
while the L maturity guide more accurately reflects the background 
color of modern peach varieties under production at this time. For this 
reason, the PCC recommended these maturity requirements based on SPI's 
continuing review of individual maturity characteristics and 
identification of the appropriate maturity guide corresponding to the 
``well matured'' level of maturity for peach varieties in production.
    The maturity requirements for these peach varieties are based on 
the PCC's continuing review of their individual maturity 
characteristics, and the identification of the appropriate color chip 
corresponding to the ``well matured'' level of maturity for each such 
variety.
    Paragraph (a)(1)(i) of Sec. 917.459 is also revised to remove 19 
peach varieties which are no longer in production. The PCC routinely 
reviews the status of peach varieties listed in these maturity guides. 
The most recent review revealed that 19 of the peach varieties 
currently listed in the maturity guide have not been in production 
since the 1993 season. Typically, the PCC recommends removing a variety 
after non-production for three seasons or if trees of that variety are 
known to have been pulled out because a maturity guide for an obsolete 
variety is no longer needed. The varieties removed include the Armgold, 
Bella Rosa, Bonjour, Desertgold, Early Fairtime, Early Royal May, 
Fortyniner, Jody Gaye, June Crest, Mardigras, Morning Sun, Preuss 
Suncrest, Prima Fire, Royal April, Sun Lady, Toreador, Treasure, 
Windsor, and 50-178 peach varieties.
    TABLE 1 of paragraph (a)(1)(i) includes changes to the spelling of 
two varieties of peaches. Previously, the Judy Elberta and Mary Ann 
varieties appeared on TABLE 1. However, the spelling of these two names 
needs to be corrected to read ``July Elberta'' and ``Mary Anne.''

Size Requirements (Nectarines and Peaches)

    Both orders provide (in Secs. 916.52 and 917.41) authority to 
establish size requirements. Size regulations allow fruit to stay on 
the tree for a greater length of time. This increased growing time not 
only improves maturity and, therefore, the quality of the product, but 
also the size of the fruit. Increased size results in increases in the 
number of packed boxes of nectarines per acre. Acceptable size fruit 
also provides greater consumer satisfaction, more repeat purchases, 
and, therefore,

[[Page 15358]]

increases returns to producers. Varieties recommended for specific size 
regulation have been reviewed and recommendations are based on the 
characteristics of the variety to attain minimum size. The NAC and PCC 
conduct studies each season on the range of sizes reached by the 
regulated varieties and determine whether revisions in the size 
requirements are appropriate.

Nectarines

    Section 916.356 specifies size requirements for fresh nectarines in 
paragraphs (a)(2) through (a)(9). This rule revises Sec. 916.356 to 
establish variety-specific size requirements for 10 nectarine varieties 
that were produced in commercially-significant quantities of more than 
10,000 packages for the first time during the 1996 season. This rule 
also modifies the variety-specific size requirements for five varieties 
of nectarines.
    For example, one of the varieties being added to the variety-
specific size requirements is the Kay Glo variety. Studies of the size 
ranges attained by the Kay Glo variety revealed that .5 percent of that 
variety met the smallest size, size 96, while 1.6 percent met the 
largest size, size 40. Approximately 45 percent of the nectarines of 
the Kay Glo variety met the next larger size, size 50.
    A review of other varieties with the same harvesting period 
indicated that Kay Glo was comparable to those varieties in its size 
ranges. Thus, the recommendation to place the Kay Glo nectarine variety 
in the variety-specific size regulation at a size 88 is appropriate. 
Historical variety data such as this provides the NAC with the 
information necessary to recommend the appropriate sizes at which to 
regulate various nectarine varieties.
    Paragraph (a)(3) of Sec. 916.356 is revised to include the Grand 
Sun nectarine variety; paragraph (a)(4) is revised to include the 
Arctic Star, Kay Glo, Prima Diamond II, and Prince Jim nectarine 
varieties; and paragraph (a)(6) in Sec. 916.356 is revised to include 
the Arctic Pride, Arctic Sweet, Diamond Ray, and Honey Kist nectarine 
varieties.
    This rule also amends Sec. 916.356 to remove six nectarine 
varieties from the variety-specific size requirements specified in the 
section because less than 5,000 packages of each of these varieties 
were produced during the 1996 season. Paragraph (a)(4) of that section 
is revised to remove the Mike Grand nectarine variety. Paragraph (a)(6) 
is revised to remove the Early Sungrand, Nectarine 23, Prima Diamond 
III, Tasty Gold, and Tom Grand nectarine varieties.
    Paragraph (a)(4) of Sec. 916.356 is also revised to include the 
Arctic Glo and Red Glo nectarine varieties which were inadvertently 
removed from the variety-specific size requirement prior to the 1996 
season.
    In a conforming change, paragraphs (a)(3), (a)(4), and (a)(6) of 
Sec. 916.356 are also revised to correct the spelling of the Mayglo, 
Juneglo, and Spring Bright nectarine varieties, respectively. Paragraph 
(a)(6) is also revised to include the Autumn Lion variety in place of 
the Red Lion variety.
    Nectarine varieties removed from the nectarine variety-specific 
list become subject to the non-listed variety size requirements 
specified in paragraphs (a)(7), (a)(8), and (a)(9) of Sec. 916.356.
    The NAC recommended these changes in the minimum size requirements 
based on a continuing review of the sizing and maturity relationships 
for these nectarine varieties, and consumer acceptance levels for 
various sizes of fruit. This rule is designed to establish minimum size 
requirements for fresh nectarines consistent with expected crop and 
market conditions.

Peaches

    Section 917.459 specifies size requirements for fresh peaches in 
paragraphs (a)(2) through (a)(6), and paragraphs (b) and (c). This rule 
amends Sec. 917.459 to establish variety-specific size requirements for 
nine peach varieties that were produced in commercially-significant 
quantities of more than 10,000 packages for the first time during the 
1996 season.
    For example, one of the varieties being added to the variety-
specific size requirements is the August Lady variety. Studies of the 
size ranges attained by the August Lady variety revealed that none of 
that variety met the smallest size, size 96, while 36 percent of the 
peach the August Lady variety met the largest size, size 30.
    A review of other varieties of the same harvesting period indicated 
that August Lady was comparable to those varieties in its size ranges. 
Thus, the recommendation to place the August Lady peach variety in the 
variety-specific size regulation at a size 72 is appropriate. 
Historical variety data such as this provides the PCC with the 
information necessary to recommend the appropriate sizes at which to 
regulate various peach varieties.
    In Sec. 917.459, paragraph (a)(5) is revised to include the Rich 
Mike, Sweet Gem, and Sweet Scarlet peach varieties; and paragraph 
(a)(6) is revised to include the August Lady, Autumn Flame, Red Sun, 
Scarlet Snow, Snow Diamond, Summer Zee, and Vista peach varieties.
    This rule also amends Sec. 917.459 to remove one peach variety from 
the variety-specific size requirements specified in that section, 
because less than 5,000 packages of this variety were produced during 
the 1996 season. In Sec. 917.459, paragraph (a)(5) is revised to remove 
the Regina peach variety.
    In a conforming change, paragraph (a)(6) of Sec. 917.459 is also 
revised to correct the spelling of the Mary Anne peach variety.
    Peach varieties removed from the variety-specific list become 
subject to the non-listed variety size requirements specified in 
paragraphs (b) and (c) of Sec. 917.459.
    The PCC recommended these changes in the minimum size requirements 
based on a continuing review of the sizing and maturity relationships 
for these peach varieties, and the consumer acceptance levels for 
various sizes fruit. This rule is designed to establish minimum size 
requirements for fresh peaches consistent with expected crop and market 
conditions.
    This rule reflects the committees' and the Department's appraisal 
of the need to revise the handling requirements for California 
nectarines and peaches, as specified. The Department's determination is 
that this rule will have a beneficial impact on producers, handlers, 
and consumers of California nectarines and peaches.
    This rule establishes handling requirements for fresh California 
nectarines and peaches consistent with expected crop and market 
conditions, and will help ensure that all shipments of these fruits 
made each season will meet acceptable handling requirements established 
under each of these orders. This rule will also help the California 
nectarine and peach industries provide fruit desired by consumers. This 
rule is designed to establish and maintain orderly marketing conditions 
for these fruits in the interest of producers, handlers, and consumers.
    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA), the Agricultural Marketing Service (AMS) has considered the 
economic impact of this action on small entities. Accordingly, AMS has 
prepared this regulatory flexibility analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
business subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Marketing orders issued 
pursuant to the Act, and rules issued thereunder, are unique in that 
they are brought about through group action of essentially small 
entities acting on their own behalf. Thus, both statutes have small 
entity orientation and compatibility.

[[Page 15359]]

    There are approximately 300 California nectarine and peach handlers 
subject to regulation under the orders covering nectarines and peaches 
grown in California, and about 1,800 producers of these fruits in 
California. Small agricultural producers have been defined by the Small 
Business Administration (13 CFR 121.601) as those having annual 
receipts of less than $500,000. Small agricultural service firms, which 
includes handlers, are defined as those whose annual receipts are less 
than $5,000,000. A majority of these handlers and producers may be 
classified as small entities.
    Under Secs. 916.52 and 917.41 of the orders, grade, size, maturity, 
container and pack requirements are established for fresh shipments of 
California nectarines and peaches. Such requirements are in effect on a 
continuing basis. This rule revises current requirements to: (1) 
Authorize continued use of a container first used in 1996; (2) 
authorize shipments of ``CA Utility'' quality fruit during the 1997 
season; (3) clarify container tolerances for mature and well matured 
fruit; and (4) revise varietal maturity and size requirements to 
reflect recent growing conditions.
    Section 916.350 (c) and Sec. 917.442 (c) currently authorize the 
use of a recyclable, reusable plastic container for the 1996 season 
only. This rule authorizes the continued use of such a container beyond 
the 1996 season. This rule also continues to permit markings on such 
containers to be placed on the disposable lids rather than on the 
outside ends of the containers. Use of this container will continue to 
offer a cheaper and more environment-friendly alternative to currently-
used disposable boxes. In addition, use of this container is advocated 
by retailers who desire to decrease their costs of disposing of packing 
boxes. Approximately 450,000 recyclable, reusable boxes were used by 
handlers of nectarines and peaches during the 1996 season, representing 
more than 1 percent of total nectarine shipments of 19,561,227 boxes 
and peach shipments of 19,481,624 boxes.
    The increased use of this container is expected to result in 
decreased handling costs for handlers, and thereby improve returns to 
producers. Generally, under current industry practices, handlers' costs 
of packaging nectarines and peaches are passed onto producers by 
handlers via a deduction from total returns. Such costs include pre-
cooling of received fruit, costs of boxes, costs of packing materials, 
costs of palletizing packed boxes, cold storage, inspection costs, etc. 
A decrease in the cost of boxes, then, has the potential for decreased 
handling costs passed on to all producers.
    In Secs. 916.350 and 917.442 of the orders regulating nectarines 
and peaches, respectively, use of lower-quality nectarines and peaches 
was authorized for shipment as ``CA Utility'' as an experiment for the 
1996 season only. This rule permits the continued use of ``CA Utility'' 
quality fruit for the 1997 season while further data is obtained. 
During the 1996 season, the Department authorized the use of nectarines 
and peaches which were of a lower quality than the minimum permitted 
for previous seasons. During 1996, there were 210,443 boxes of 
nectarines and 365,761 boxes of peaches packed as ``CA Utility,'' or 
1.1 percent and 1.9 percent, respectively. Continued availability of 
``CA Utility'' quality fruit is expected to have a positive impact on 
producers, handlers, and consumers by permitting more nectarines and 
peaches into fresh market channels, without adversely impacting the 
market for higher quality fruit.
    This rule also clarifies the container tolerances for mature and 
well-matured nectarines and peaches. Under the orders, the container 
tolerances in the standards have been applied to mature and well 
matured fruit, although the tolerances were not specifically detailed 
in the standards or the marketing orders' rules and regulations. Thus, 
this is a clarifying change which will have no practical impact on 
growers or handlers.
    Sections 916.356 and 917.442 for nectarines and peaches, 
respectively, currently establish minimum maturity levels. This rule 
makes annual adjustments to the maturity requirements for several 
varieties of nectarines and peaches. Maturity requirements are based on 
maturity measurements generally using maturity guides (e.g., color 
chips). Such maturity guides provide producers and handlers with 
objective tools for measuring the maturity of different varieties of 
nectarines and peaches. Such maturity guides are reviewed annually to 
determine the appropriate guide for each nectarine and peach variety. 
These annual adjustments reflect changes in the maturity patterns of 
nectarines and peaches as experienced over the previous seasons' 
inspections. Adjustments in the guides ensure that fruit has met an 
acceptable level of ripeness, thus ensuring consumer satisfaction and 
benefitting nectarine and peach growers and handlers.
    Currently, in Sec. 916.356 for nectarines and Sec. 917.459 for 
peaches, minimum sizes for various varieties of nectarines and peaches 
are established. This rule makes annual adjustments to the minimum 
sizes authorized for various varieties of nectarines and peaches 
beginning with the 1997 season. Minimum size regulations are put in 
place to allow fruit to stay on the tree for a greater length of time. 
This increased growing time not only improves maturity, but also 
improves fruit size. Increased fruit size increases the number of 
packed boxes per acre to the benefit of both producers and handlers. 
Increased fruit size also provides greater consumer satisfaction and, 
therefore, more repeat purchases by consumers. Repeat purchases and 
consumer satisfaction benefit producers and handlers alike. Such 
adjustments to minimum sizes of nectarines and peaches are recommended 
each year by the NAC and PCC based upon historical data regarding sizes 
which the different varieties attain.
    This rule clarifies some of the orders' requirements and relaxes 
others. Accordingly, this action does not impose any additional 
reporting and recordkeeping requirements on either small or large 
handlers. As with all Federal marketing order programs, reports and 
forms are periodically reviewed to reduce information requirements and 
duplication by industry and public sector agencies.
    The Department has not identified any relevant Federal rules that 
duplicate, overlap or conflict with this rule. However, as previously 
stated, nectarines and peaches under the orders have to meet certain 
requirements set forth in the standards issued under the Agricultural 
Marketing Act of 1946 (7 U.S.C. 1621 through 1627). Standards issued 
under the Agricultural Marketing Act of 1946 are otherwise voluntary.
    In addition, the committees' meetings were widely publicized 
throughout the nectarine and peach industries and all interested 
parties were invited to attend the meetings and participate in 
committee deliberations on all issues. Like all committee meetings, the 
December 4, 1996, meetings were public meetings and all entities, both 
large and small, were able to express views on these issues. The 
committees themselves are composed of producers, the majority of whom 
are small entities. Finally, interested persons are invited to submit 
information on the regulatory and informational impacts of this action 
on small businesses.
    After consideration of all relevant matters presented, the 
information and recommendations submitted by the committees, and other 
information, it is found that this interim final rule, as hereinafter 
set forth, will tend to effectuate the declared policy of the Act.

[[Page 15360]]

    Pursuant to 5 U.S.C. 553, it is also found and determined, upon 
good cause, that it is impracticable, unnecessary and contrary to the 
public interest to give preliminary notice prior to putting this rule 
into effect, and that good cause exists for not postponing the 
effective date of this rule until 30 days after publication in the 
Federal Register because: (1) California nectarine and peach producers 
and handlers should be apprised of this rule as soon as possible, since 
early shipments of these fruits are expected to begin about April 1; 
(2) this rule relaxes grade requirements for nectarines and peaches and 
size requirements for several nectarine and peach varieties; (3) 
California nectarine and peach handlers are aware of these revised 
requirements recommended by the committees at public meetings, and they 
will need no additional time to comply with such requirements; and (4) 
the rule provides a 30-day comment period, and any written comments 
received will be considered prior to any finalization of this interim 
final rule.

List of Subjects

7 CFR Part 916

    Marketing agreements, Nectarines, Reporting and recordkeeping 
requirements.

7 CFR Part 917

    Marketing agreements, Peaches, Pears, Reporting and recordkeeping 
requirements.
    For the reasons set forth in the preamble, 7 CFR parts 916 and 917 
are amended as follows:

    1. The authority citation for 7 CFR parts 916 and 917 continues to 
read as follows:
    Authority: 7 U.S.C. 601-674.

PART 916--NECTARINES GROWN IN CALIFORNIA

    2. Section 916.350 is amended by revising paragraph (d) to read as 
follows:


Sec. 916.350  California Nectarine Container and Pack Regulation.

* * * * *
    (d) During the period April 1 through October 31, 1997, each 
container or package when packed with nectarines meeting CA Utility 
requirements, shall bear the words ``CA Utility,'' along with all other 
required container markings, in letters of \3/4\ inch minimum height on 
the visible display panel. Consumer bags or packages must also be 
clearly marked on the bag or package as ``CA Utility'' along with other 
required markings.
* * * * *
    3. Section 916.356 is amended by revising paragraphs (a)(1) 
introductory text, (a)(1)(iii), (a)(3) introductory text, (a)(4) 
introductory text, (a)(5) introductory text, and (a)(6) introductory 
text, and adding a new Table 1 to paragraph (a)(1)(i) with a note 
immediately following it to read as follows:


Sec. 916.356  California Nectarine Grade and Size Regulation.

    (a) * * *
    (1) Any lot or package or container of any variety of nectarines 
unless such nectarines meet the requirements of U.S. No. 1 grade: 
Provided, That nectarines 2 inches in diameter or smaller, shall not 
have fairly light-colored, fairly smooth scars which exceed an 
aggregate area of a circle \3/8\ inch in diameter, and nectarines 
larger than 2 inches in diameter shall not have fairly light-colored, 
fairly smooth scars which exceed an aggregate area of a circle \1/2\ 
inch in diameter: Provided further, that an additional tolerance of 25 
percent shall be permitted for fruit that is not well formed, but not 
badly misshapened: Provided further, That during the period April 1 
through October 31, 1997, any handler may handle nectarines if such 
nectarines meet ``CA Utility'' quality requirements. The term ``CA 
Utility'' means that not more than 30 percent of the nectarines in any 
container meet or exceed the requirements of the U.S. No. 1 grade and 
that such nectarines are mature and are:
    (i) * * *
    Table 1

                                 Table 1                                
------------------------------------------------------------------------
             Column A variety                 Column B maturity guide   
------------------------------------------------------------------------
Alshir Red...............................  J                            
Ama Lyn..................................  G                            
Apache...................................  G                            
April Glo................................  H                            
Arm King.................................  B                            
August Glo...............................  L                            
August Lion..............................  J                            
August Red...............................  J                            
Aurelio Grand............................   F                           
Autumn Delight...........................  L                            
Autumn Grand.............................  L                            
Big Jim..................................  J                            
Bob Grand................................  L                            
Del Rio Rey..............................  G                            
Earliglo.................................  I                            
Early Diamond............................  J                            
Early May................................  F                            
Early May Grand..........................  H                            
Early Red Jim............................  J                            
Early Sungrand...........................  H                            
Fairlane.................................  L                            
Fantasia.................................  J                            
Firebrite................................  H                            
Flamekist................................  L                            
Flaming Red..............................  K                            
Flavor Grand.............................  G                            
Flavortop................................  J                            
Flavortop I..............................  K                            
Gold King................................  H                            
Grand Diamond............................  L                            
Grand Stan...............................  F                            
Independence.............................  H                            
July Red.................................  L                            
Juneglo..................................  H                            
June Grand...............................  G                            
Kay Diamond..............................  L                            
Kent Grand...............................  L                            
King Jim.................................  L                            
Kism Grand...............................  J                            
Late Le Grand............................  L                            
Late Red Jim.............................  J                            
Le Grand.................................  H                            
Maybelle.................................  F                            
May Diamond..............................  I                            
May Fire.................................  H                            
Mayglo...................................  H                            
May Grand................................  H                            
May Jim..................................  I                            
May Kist.................................  H                            
May Lion.................................  J                            
Mid Glo..................................  L                            
Mike Grand...............................  H                            
Moon Grand...............................  L                            
Niagara Grand............................  H                            
Pacific Star.............................  G                            
P-R Red..................................  L                            
Red Diamond..............................  L                            
Red Delight..............................  I                            
Red Fred.................................  J                            
Red Free.................................  L                            
Red Glen.................................  J                            
Red Glo..................................  I                            
Red Grand................................  H                            
Red Jim..................................  L                            
Red June.................................  G                            
Red May..................................  J                            
Regal Grand..............................  L                            
Rio Red..................................  L                            
Rose Diamond.............................  J                            
Royal Delight............................  F                            
Royal Giant..............................  I                            
Royal Glo................................  I                            
Ruby Diamond.............................  L                            
Ruby Grand...............................  J                            
Ruby Sun.................................  J                            
Scarlet Red..............................  K                            
September Grand..........................  L                            
September Red............................  L                            
Sheri Red................................  J                            
Sierra Star/181-119......................  G                            
Son Red..................................  L                            
Sparkling June...........................  L                            
Sparkling May............................  J                            
Sparkling Red............................  L                            
Spring Bright............................  L                            
Spring Diamond...........................  L                            
Spring Grand.............................  G                            
Spring Red...............................  H                            
Springtop................................  B                            
Star Bright..............................  G                            
Star Brite...............................  J                            
Star Grand...............................  H                            
Summer Beaut.............................  H                            
Summer Blush.............................  J                            

[[Page 15361]]

                                                                        
Summer Bright............................  J                            
Summer Diamond...........................  L                            
Summer Fire..............................  L                            
Summer Grand.............................  L                            
Summer Lion..............................  L                            
Summer Red...............................  L                            
Summer Star..............................  G                            
Sunburst.................................  J                            
Sun Diamond..............................  I                            
Sunfre...................................  F                            
Sun Grand................................  G                            
Super Star...............................  G                            
Tasty Free...............................  J                            
Tasty Gold...............................  H                            
Tom Grand................................  L                            
Zee Glo..................................  J                            
Zee Grand................................  I                            
------------------------------------------------------------------------

    Note: Consult with the Federal or Federal-State Inspection 
Service Supervisor for the maturity guides applicable to the 
varieties not listed above.

    (ii) * * *
    (iii) Container tolerances. A package may contain not more than 
double any specified tolerance except that at least two defective 
specimens may be permitted in any package: Provided, That the averages 
for the entire lot are within the tolerances specified in this part.
* * * * *
    (3) Any package or container of Mayglo variety nectarines on or 
after May 6 of each year, or Earliglo, Early Diamond, Grand Sun, 
Johnny's Delight, May Jim, or May Kist variety nectarines, unless:
* * * * *
    (4) Any package or container of Arctic Glo, Arctic Rose, Arctic 
Star, Early May, June Brite, Juneglo, Kay Glo, May Diamond, May Grand, 
May Lion, Pacific Star, Prima Diamond II, Prince Jim, Red Delight, Red 
Glo, Rose Diamond, Royal Glo, Sparkling May, Star Brite, or Zee Grand 
variety nectarines unless:
* * * * *
    (6) Any package or container of Alshir Red, Alta Red, Arctic Pride, 
Arctic Queen, Arctic Sweet, August Glo, August Lion, August Red, Autumn 
Delight, Big Jim, Bob Grand, Diamond Ray, Early Red Jim, Fairlane, 
Fantasia, Firebrite, Flame Glo, Flamekist, Flaming Red, Flavor Grand, 
Flavortop, Flavortop I, Grand Diamond, Honey Kist, How Red, July Red, 
Kay Diamond, King Jim, Kism Grand, Late Red Jim, Mid Glo, Moon Grand, 
Niagara Grand, P-R Red, Prima Diamond IV, Prima Diamond VII, Prima 
Diamond VIII, Red Diamond, Red Fred, Red Free, Red Glen, Red Jim, Rio 
Red, Royal Giant, Ruby Diamond, Ruby Grand, Scarlet Red, September 
Grand, September Red, Sparkling June, Sparkling Red, Spring Bright, 
Spring Diamond, Spring Red, Summer Beaut, Summer Blush, Summer Bright, 
Summer Diamond, Summer Fire, Summer Grand, Summer Lion, Summer Red, 
Summer Star, Sunburst, Sun Diamond, Super Star, White Jewels (Arctic 
Snow), Zee Glo, 80P-1135, or 424-195 variety nectarines unless:
* * * * *

PART 917--FRESH PEARS AND PEACHES GROWN IN CALIFORNIA

    4. Section 917.442 is amended by revising paragraph (d) to read as 
follows:


Sec. 917.442  California Peach Container and Pack Regulation.

* * * * *
    (d) During the period April 1 through November 23, 1997, each 
container or package when packed with peaches meeting CA Utility 
requirements, shall bear the words ``CA Utility,'' along with all other 
required container markings, in letters of 3/4 inch minimum height on 
the visible display panel. Consumer bags or packages must also be 
clearly marked on the bag or package as ``CA Utility'' along with other 
required markings.
* * * * *
    5. Section 917.459 is amended by revising paragraphs (a)(1) 
introductory text, (a)(1)(iii), (a)(5) introductory text, and (a)(6) 
introductory text, and adding a new Table 1 to paragraph (a)(1)(i) with 
a note immediately following it to read as follows:


Sec. 917.459  California Peach Grade and Size Regulation.

    (a) * * *
    (1) Any lot or package or container of any variety of peaches 
unless such peaches meet the requirements of U.S. No. 1 grade: 
Provided, that an additional 25 percent tolerance shall be permitted 
for fruit with open sutures which are damaged, but not seriously 
damaged: Provided, That during the period April 1 through November 23, 
1997, any handler may handle peaches if such peaches meet ``CA 
Utility'' quality requirements. The term ``CA Utility'' means that not 
more than 30 percent of the peaches in any container meet or exceed the 
requirements of the U.S. No. 1 grade and that such peaches are mature 
and are:
    (i) * * *

                                 Table 1                                
------------------------------------------------------------------------
             Column A variety                 Column B maturity guide   
------------------------------------------------------------------------
Angelus..................................  I                            
Ambercrest...............................  G                            
August Sun...............................  I                            
Autumn Crest.............................  I                            
Autumn Gem...............................  I                            
Autumn Lady..............................  H                            
Autumn Rose..............................  I                            
Belmont (Fairmont).......................  I                            
Berenda Sun..............................  I                            
Blum's Beauty............................  G                            
Cardinal.................................  G                            
Cal Red..................................  I                            
Carnival.................................  I                            
Cassie...................................  H                            
Coronet..................................  E                            
Crimson Lady.............................  J                            
Crown Princess...........................  J                            
David Sun................................  I                            
Diamond Princess.........................  J                            
Early Coronet............................  D                            
Early Delight............................  H                            
Early Elegant Lady.......................  L                            
Early May Crest..........................  H                            
Early O'Henry............................  I                            
Early Top................................  G                            
Elberta..................................  B                            
Elegant Lady.............................  L                            
Fairtime.................................  G                            
Fancy Lady...............................  J                            
Fay Elberta..............................  C                            
Fayette..................................  I                            
Fire Red.................................  I                            
First Lady...............................  D                            
Flamecrest...............................  I                            
Flavorcrest..............................  G                            
Flavor Queen.............................  H                            
Flavor Red...............................  G                            
Franciscan...............................  G                            
Goldcrest................................  H                            
Golden Crest.............................  H                            
Golden Lady..............................  F                            
Honey Red................................  G                            
John Henry...............................  J                            
July Elberta.............................  C                            
July Lady................................  G                            
June Lady................................  G                            
June Pride...............................  J                            
June Sun.................................  H                            
Kearney..................................  I                            
Kern Sun.................................  H                            
Kingcrest................................  H                            
Kings Lady...............................  I                            
Kings Red................................  I                            
Lacey....................................  I                            
Mary Anne................................  G                            
May Crest................................  G                            
May Lady.................................  G                            
May Sun..................................  I                            
Merrill Gem..............................  G                            
Merrill Gemfree..........................  G                            
O'Henry..................................  I                            
Pacifica.................................  G                            
Parade...................................  I                            
Pat's Pride..............................  D                            
Prima Lady...............................  J                            
Prime Crest..............................  H                            
Queencrest...............................  G                            
Ray Crest................................  G                            
Red Cal..................................  I                            
Red Dancer (Red Boy).....................  I                            

[[Page 15362]]

                                                                        
Redglobe.................................  C                            
Redhaven.................................  G                            
Red Lady.................................  G                            
Redtop...................................  G                            
Regina...................................  G                            
Rich Lady................................  J                            
Rich May.................................  H                            
Rio Oso Gem..............................  I                            
Royal Lady...............................  J                            
Royal May................................  G                            
Ruby May.................................  H                            
Ryan Sun.................................  I                            
Scarlet Lady.............................  F                            
September Sun............................  I                            
Sierra Crest.............................  H                            
Sierra Lady..............................  I                            
Sparkle..................................  I                            
Springcrest..............................  G                            
Spring Lady..............................  H                            
Springold................................  D                            
Sugar Lady...............................  J                            
Summer Lady..............................  L                            
Summerset................................  I                            
Suncrest.................................  G                            
Topcrest.................................  H                            
Tra Zee..................................  J                            
Willie Red...............................  G                            
Zee Lady.................................  L                            
------------------------------------------------------------------------

    Note: Consult with the Federal or Federal-State Inspection 
Service Supervisor for the maturity guides applicable to the 
varieties not listed above.

    (ii) * * *
    (iii) Container tolerances. The contents of individual packages in 
the lot are subject to the following limitations, provided the averages 
for the entire lot are within the tolerances specified in this part:
    (A) For packages which contain more than 10 pounds, and a tolerance 
of 10 percent or more is provided, individual packages shall have not 
more than one and one-half times the tolerance specified. For packages 
which contain more than 10 pounds and a tolerance of less than 10 
percent is provided, individual packages shall have not more than 
double the tolerance specified.
    (B) For packages which contain 10 pounds or less, individual 
packages are not restricted as to the percentage of defects.
* * * * *
    (5) Any package or container of Babcock, Crimson Lady, Crown 
Princess, David Sun, Early May Crest, Flavorcrest, Golden Crest, Honey 
Red, June Lady, June Sun, Kern Sun, Kingcrest, Kings Red, May Crest, 
May Sun, Merrill Gemfree, Queencrest, Ray Crest, Redtop, Rich May, Rich 
Mike, Snow Brite, Snow Flame, Springcrest, Spring Lady, Sugar May, 
Sweet Gem, or Sweet Scarlet variety of peaches unless:
* * * * *
    (6) Any package or container of Amber Crest, August Lady, August 
Sun, Autumn Crest, Autumn Flame, Autumn Gem, Autumn Lady, Autumn Rose, 
Belmont (Fairmont), Berenda Sun, Blum's Beauty, Cal Red, Carnival, 
Cassie, Champagne, Diamond Princess, Early Elegant Lady, Early O'Henry, 
Elegant Lady, Fairtime, Fancy Lady, Fay Elberta, Fire Red, Flamecrest, 
John Henry, July Sun, June Pride, Kaweah, Kings Lady, Lacey, Late Ito 
Red, Mary Anne, O'Henry, Prima Gattie, Prima Lady, Red Dancer, Red Sun, 
Rich Lady, Royal Lady, Ryan Sun, Scarlet Snow, September Snow, 
September Sun, Sierra Lady, Snow Ball, Snow Diamond, Snow Giant, Snow 
King, Sparkle, Sprague Last Chance, Sugar Giant, Sugar Lady, Summer 
Lady, Summer Sweet, Summer Zee, Suncrest, Tra Zee, Vista, White Lady, 
or Zee Lady variety of peaches unless:
* * * * *
    Dated: March 24, 1997.
Eric M. Forman,
Acting Director, Fruit and Vegetable Division.
[FR Doc. 97-8346 Filed 3-28-97; 11:32 am]
BILLING CODE 3410-02-P