[Federal Register Volume 63, Number 53 (Thursday, March 19, 1998)]
[Rules and Regulations]
[Pages 13329-13331]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-7156]



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 Rules and Regulations
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  Federal Register / Vol. 63, No. 53 / Thursday, March 19, 1998 / Rules 
and Regulations  

[[Page 13329]]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 56

[Docket No. PY-97-003]


Voluntary Shell Egg Regulations

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: The Agricultural Marketing Service (AMS) is amending the 
regulations governing the voluntary shell egg grading program. The 
revisions require that scales of stated precision be provided to the 
grader; provide an alternative grademark for shell eggs; provide for 
the use of a ``Produced From'' grademark to officially identify 
products that originate from officially graded shell eggs; and remove 
the requirement for continuous overflow of water during the egg washing 
process. From time to time, sections in the regulations are affected by 
changes in egg processing technology and egg marketing. This rule 
updates the regulations to reflect these changes.

EFFECTIVE DATE: April 20, 1998.

FOR FURTHER INFORMATION CONTACT: Douglas C. Bailey, Chief, 
Standardization Branch, (202) 720-3506.

SUPPLEMENTARY INFORMATION: This rule has been determined to be not 
significant for purposes of Executive Order 12866 and has not been 
reviewed by the Office of Management and Budget (OMB).
    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. This action 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. There are no administrative procedures which must be exhausted 
prior to any judicial challenge to the provisions of this rule.
    Pursuant to the requirements set forth in the Regulatory 
Flexibility Act (RFA), AMS has considered the economic impact of this 
action on small entities as defined in the RFA (5 U.S.C. 601). There 
are almost 200 plants using the Agency's shell egg grading services and 
many of them are small entities.
    Requiring electronic digital-display scales will affect some 
processors by requiring the purchase of one or more scales that cost 
from $150 to $1,000 each. This equipment will improve the accuracy of 
egg weight determinations, allowing processors to avoid the expense 
incurred when product is unnecessarily retained and re-processed.
    Shell egg processors will be allowed to use a shield displayed in 
three colors on packaging materials to officially identify USDA graded 
eggs. Similarly, producers of products originating from officially 
graded shell eggs will be allowed to use a ``Produced From'' grademark 
on packaging materials. The use of these alternative forms of the USDA 
grademark gives processors greater flexibility in packaging and 
marketing their products. Since these alternative grademarks are used 
at the processors' discretion, any economic impact caused by their use 
is by the choice of the processors.
    Removing the requirement for the continuous overflow of water 
during egg washing will conserve water and energy resources, decrease 
operating expenses of processors, and lessen the environmental impact 
of shell egg processing. This is expected to have a positive economic 
impact on processors.
    Other editorial-type changes will clarify or update the existing 
regulations and will have no additional economic impact on entities 
using voluntary shell egg grading services.
    For the above reasons, the Agency has certified that this action 
will not have a significant impact on a substantial number of small 
entities.
    The information collection requirement in Sec. 56.37 to be amended 
by this rule has been previously approved by OMB and assigned OMB 
Control Number 0581-0127 under the Paperwork Reduction Act (44 U.S.C. 
Chapter 35).

Background and Comments

    Shell egg grading is a voluntary program provided under the 
Agricultural Marketing Act of 1946, as amended, and is offered on a 
fee-for-service basis. It is designed to assist the orderly marketing 
of shell eggs by providing for the official certification of egg 
quality, quantity, size, temperature, packaging, and other factors. 
Changes in egg processing technology and egg marketing require that the 
regulations governing shell egg grading be updated from time to time.
    A proposed rule to amend the voluntary shell egg grading 
regulations was published in the Federal Register (62 FR 42944) on 
August 11, 1997. Comments on the proposed rule were solicited from 
interested parties until October 10, 1997.
    During the 60-day comment period, the Agency received eight 
comments regarding the proposal. Comments from two State government 
agencies and one egg producer association expressed overall support for 
the proposal. The one egg producer who commented objected to the 
proposed requirement for precision scales. Comments from two State 
cooperative extension service specialists and two equipment 
manufacturers dealt with egg wash water overflow. The proposals and the 
comments are discussed below.

Scales

    Grading personnel certify egg weights according to the official 
U.S. weight classes. Today, the highly mechanized, state-of-the-art 
equipment used to package shell eggs weighs individual eggs with high 
precision to satisfy container weight requirements. For processors to 
receive fair, uniform, accurate weight certification, graders need to 
have similarly precise scales to certify egg weights. Therefore, the 
Agency proposed to amend Sec. 56.17(a). The proposal requires plants to 
replace balance or spring-type scales with electronic digital-display 
scales gradated in increments of \1/10\-ounce or less and \1/4\-ounce 
or less for weighing individual eggs and consumer packages, 
respectively. It also requires that scales used for weighing shipping 
containers be gradated in increments of \1/4\-pound or less. The 
proposal continues to require test weights for calibrating all scales.

[[Page 13330]]

    The one egg producer who commented felt that existing scales should 
only be replaced when they are clearly unreliable. One of the State 
government agencies commented that all plants receiving resident 
grading service in their State had already replaced their balance and 
spring-type scales with digital scales that comply with the proposed 
rule.
    The Agency still finds the proposal to establish a minimum level of 
scale precision beneficial and appropriate for the conduct of a 
nationwide grading program and will issue it as a final rule. We 
continue to be of the view that for processors to receive fair, 
uniform, accurate weight certification, graders need to have similarly 
precise scales to certify egg weights and the change to the regulation 
made by this action will accomplish this.

Grademarks

    Many processors want to identify their consumer-pack USDA graded 
shell eggs, or products prepared from those eggs, with a USDA 
grademark. The Agency proposed amending Sec. 56.36 to allow processors 
additional flexibility in packaging and marketing their products. The 
proposal permits the use of a new grademark that contains horizontal 
bands of three colors. It also provides for the use of a new ``Produced 
From'' grademark to officially identify products produced from U.S. 
Grade AA or Grade A shell eggs for which there are no U.S. grade 
standards (e.g., pasteurized shell eggs). It also removes the option of 
using terms such as ``Federal-State Graded'' within the grademark 
because this option is no longer used. Finally, the proposal clarifies 
the organization and wording of Sec. 56.36 and corrects references to 
Sec. 56.36 that are in Sec. 56.37 and Sec. 56.40.
    There were no comments about this proposal and the Agency will 
issue the final rule as it was proposed.

Overflow of Wash Water

    Basically, the egg washing process involves moving eggs through 
brushes under a spray of wash water delivered through a system of 
pipes. The wash water, a mixture of water and an approved cleaning 
compound, is filtered and recirculated through the system of pipes from 
a holding tank. The tank is designed to permit both the inflow and 
overflow of wash water. Overflow occurs when the volume of wash water 
exceeds the holding capacity of the tank. When the tank is filled with 
water and the washer is turned on, the water is pumped from the tank 
into the system of pipes and the water level in the tank lowers. Also, 
some water is lost due to evaporation and other causes. Replacement 
water is added continuously and cleaning compound is added as necessary 
to maintain the cleaning efficacy of the wash water. Approximately 
every 4 hours and between shifts, wash water tanks are emptied and 
refilled with clean, potable water.
    The Agency currently requires that replacement water be added 
continuously to the wash water in order to maintain a continuous 
overflow of water. However, the rate at which replacement water is 
added to today's egg washing equipment is not always of sufficient 
volume to provide for continuous overflow, particularly at the 
beginning of shifts or when the washing equipment is stopped and 
restarted during the day. Accordingly, the Agency proposed to amend 
Sec. 56.76(e)(5) by omitting the requirement for maintaining a 
continuous overflow of water in shell egg washers.
    One equipment manufacturer expressed support for the proposal as 
written. Another equipment manufacturer recommended that the regulation 
be reworded to suggest that the overflow of water be expected 10 to 15 
minutes after start-up, and recommended that egg washers be equipped 
with a double rinse and traveling filter system. The two State 
cooperative extension specialists raised the concern that by not 
requiring continuous overflow of water, waste could build up in the 
wash water and overwhelm the detergents and sanitizers.
    The Agency recognizes that rate of replacement water inflow, 
concentration of cleaning compound in the wash water, and rate of 
overflow all affect wash water quality. The proposal was published in 
recognition that the continuous overflow of wash water is not necessary 
to maintain the cleaning efficacy of the wash water. The Agency's 
existing requirement that replacement water be continuously added to 
the washing system will likely result in a periodic overflow of wash 
water during the washing process, with the frequency and rate of 
overflow dependent on factors such as the rate of replacement water 
inflow, tank size, rate of evaporation, and the number of eggs cleaned. 
While the proposal would eliminate the requirement for continuous 
overflow of wash water, it would not eliminate the periodic overflow of 
wash water.
    The Agency continues to find no evidence that continuous wash water 
overflow is necessary to maintain the cleaning efficacy of wash water, 
and no comments provided evidence to the contrary. Moreover, the Agency 
believes the proposal to eliminate continuous overflow of wash water 
provides egg packers the flexibility they need to responsibly use 
today's egg cleaning equipment and technologies and to provide their 
customers with the cleanest eggs possible. Therefore, it will issue the 
final rule as proposed.

List of Subjects in 7 CFR Part 56

    Eggs and egg products, Food grades and standards, Food labeling, 
Reporting and record keeping requirements.

    For reasons set forth in the preamble, Title 7, Code of Federal 
Regulations Part 56 is amended as follows:

PART 56--VOLUNTARY GRADING OF SHELL EGGS

    1. The heading for part 56 is revised to read as set forth above.
    1a. The authority citation for part 56 continues to read as 
follows:

    Authority: 7 U.S.C. 1621-1627.

    2. In Sec. 56.17, paragraphs (a)(2) and (a)(3) are removed and new 
paragraphs (a)(2) through (5) are added to read as follows:


Sec. 56.17  Facilities and equipment for graders.

* * * * *
    (a) * * *
    (2) Electronic digital-display scales graduated in increments of 
\1/10\-ounce or less for weighing individual eggs and test weights for 
calibrating such scales. Plants packing product based on metric weight 
must provide scales graduated in increments of 1-gram or less;
    (3) Electronic digital-display scales graduated in increments of 
\1/4\-ounce or less for weighing the lightest and heaviest consumer 
packages packed in the plant and test weights for calibrating such 
scales;
    (4) Scales graduated in increments of \1/4\-pound or less for 
weighing shipping containers and test weights for calibrating such 
scales;
    (5) An acceptable candling light.
* * * * *
    3. Section 56.36 is revised to read as follows:


Sec. 56.36  Form of grademark and information required.

    (a) Form of official identification symbol and grademark. (1) The 
shield set forth in Figure 1 of this section shall be the official 
identification symbol for purposes of this part and when used, 
imitated, or simulated in any manner in connection with shell eggs, 
shall be deemed prima facia to constitute a representation that the 
product has been

[[Page 13331]]

officially graded for the purposes of Sec. 56.2.
    (2) Except as otherwise authorized, the grademark permitted to be 
used to officially identify USDA consumer-graded shell eggs shall be of 
the form and design indicated in Figures 2 through 4 of this section. 
The shield shall be of sufficient size so that the printing and other 
information contained therein is legible and in approximately the same 
proportion as shown in these figures.
    (3) The ``Produced From'' grademark in Figure 5 of this section may 
be used to identify products for which there are no official U.S. grade 
standards (e.g., pasteurized shell eggs), provided that these products 
are approved by the Agency and are prepared from U.S. Consumer Grade AA 
or A shell eggs under the continuous supervision of a grader.
    (b) Information required on grademark. (1) Except as otherwise 
authorized by the Administrator, each grademark used shall include the 
letters ``USDA'' and the U.S. grade of the product it identifies, such 
as ``A Grade,'' as shown in Figure 2 of this section. Such information 
shall be printed with the shield and the wording within the shield in 
contrasting colors in a manner such that the design is legible and 
conspicuous on the material upon which it is printed.
    (2) The size or weight class of the product, such as ``Large,'' may 
appear within the grademark as shown in Figure 3 of this section. If 
the size or weight class is omitted from the grademark, it must appear 
prominently on the main panel of the carton.
    (3) Except as otherwise authorized, the bands of the shield in 
Figure 4 of this section shall be displayed in three colors, with the 
color of the top, middle, and bottom bands being blue, white, and red, 
respectively.
    (4) The ``Produced From'' grademark in Figure 5 of this section may 
be any one of the designs shown in Figures 2 through 4 of this section. 
The text outside the shield shall be conspicuous, legible, and in 
approximately the same proportion and close proximity to the shield as 
shown in Figure 5 of this section.
    (5) The plant number of the official plant preceded by the letter 
``P'' must be shown on each carton or packaging material.

BILLING CODE 3410-02-P
[GRAPHIC] [TIFF OMITTED] TR19MR98.011

[GRAPHIC] [TIFF OMITTED] TR19MR98.012

[GRAPHIC] [TIFF OMITTED] TR19MR98.013

[GRAPHIC] [TIFF OMITTED] TR19MR98.014

[GRAPHIC] [TIFF OMITTED] TR19MR98.015


BILLING CODE 3410-02-C

    4. In Sec. 56.37, the first sentence is revised to read as follows:


Sec. 56.37  Lot marking of officially identified product.

    Each carton identified with the grademarks shown in Sec. 56.36 
shall be legibly lot numbered on either the carton or the consumer 
package. * * *
    5. In Sec. 56.40, paragraph (a) is revised to read as follows:


Sec. 56.40  Grading requirements of shell eggs identified with consumer 
grademarks.

    (a) Shell eggs to be identified with the grademarks illustrated in 
Sec. 56.36 must be individually graded by a grader or by authorized 
personnel pursuant to Sec. 56.11 and thereafter check graded by a 
grader.
* * * * *
    6. In Sec. 56.76, the first sentence in paragraph (e)(5) is revised 
to read as follows:


Sec. 56.76  Minimum facility and operating requirements for shell egg 
grading and packing plants.

* * * * *
    (e) * * *
    (5) Replacement water shall be added continuously to the wash water 
of washers. * * *
* * * * *
    Dated: March 13, 1998.
Kenneth C. Clayton,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 98-7156 Filed 3-18-98; 8:45 am]
BILLING CODE 3410-02-P