[Federal Register Volume 63, Number 183 (Tuesday, September 22, 1998)]
[Rules and Regulations]
[Pages 50461-50464]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-25398]



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 Rules and Regulations
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  Federal Register / Vol. 63, No. 183 / Tuesday, September 22, 1998 / 
Rules and Regulations  

[[Page 50461]]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 916 and 917

[Docket No. FV98-916-2 IFR]


Nectarines and Peaches Grown in California; Relaxation of Quality 
Requirements for Fresh Nectarines and Peaches

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This interim final rule relaxes ``CA Utility'' quality 
requirements for California nectarines and peaches for the remainder of 
the 1998 season. The ``CA Utility'' quality requirements are based on 
minimum quality requirements established under the California 
Agricultural Code, with a limitation on the amount of fruit meeting 
U.S. No. 1 or higher grade requirements that may be present in each 
container marked ``CA Utility.'' Currently, the ``CA Utility'' quality 
requirement permits not more than 30 percent of nectarines or peaches 
in any container to meet or exceed the requirements of U.S. No. 1. This 
relaxation increases that limitation from 30 percent to not more than 
40 percent except that at least one-quarter of the fruit grading U.S. 
No. 1 in such containers must have non-scoreable blemishes. A non-
scoreable blemish is a defect that does not cause the fruit to fail 
U.S. No. 1 grade requirements. This rule will allow more U.S. No. 1 
nectarines and peaches to be packed in containers marked ``CA 
Utility,'' and is expected to benefit growers, handlers, and consumers.

DATES: Effective September 23, 1998. Comments received by October 7, 
1998 will be considered prior to issuance of any final rule.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this final rule. Comments must be sent to the Docket Clerk, 
Fruit and Vegetable Programs, AMS, USDA, P.O. Box 96456, room 2523-S, 
Washington, DC 20090-6456; Fax: (202) 205-6632; or E-mail: 
[email protected]. 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 in the Office of the 
Docket Clerk during regular business hours.

FOR FURTHER INFORMATION CONTACT: Terry Vawter, Marketing Specialist, or 
Kurt J. Kimmel, Regional Manager, California Marketing Field Office, 
Marketing Order Administration Branch, Fruit and Vegetable Programs, 
AMS, USDA, 2202 Monterey Street, suite 102B, Fresno, California 93721; 
telephone: (209) 487-5901; Fax: (209) 487-5906 or George Kelhart, 
Technical Advisor, Marketing Order Administration Branch, Fruit and 
Vegetable Programs, AMS, USDA, room 2525-S, P.O. Box 96456, Washington, 
DC 20090-6456; telephone: (202) 720-2491, Fax: (202) 205-6632. Small 
businesses may request information on compliance with this regulation 
by contacting: Jay Guerber, Marketing Order Administration Branch, 
Fruit and Vegetable Programs, AMS, USDA, P.O. Box 96456, Room 2525-S, 
Washington, D.C. 20090-6456; telephone: (202) 720-2491, Fax: (202) 205-
6632.

SUPPLEMENTARY INFORMATION: This interim final rule is issued under 
Marketing Agreement Nos. 124 and 85, and Marketing Order Nos. 916 and 
917 [7 CFR Parts 916 and 917] regulating the handling of nectarines and 
peaches grown in California, respectively, 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 final 
rule in conformance with Executive Order 12866.
    This final rule has been reviewed under Executive Order 12866, 
Civil Justice Reform. This final rule is not intended to have 
retroactive effect. This final 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.
    This interim final rule relaxes, for the remainder of the 1998 
season, the ``CA Utility'' quality requirement to allow more U.S. No. 1 
grade nectarines and peaches in containers marked ``CA Utility''. 
Currently, the term ``CA Utility'' means that not more than 30 percent 
of the nectarines and peaches in any container meet or exceed the 
requirements of the U.S. No. 1 grade, and meet other specified 
requirements. This interim final rule increases that percentage to 40 
percent except that at least one-quarter of the fruit grading U.S. No. 
1 in such containers must have non-scoreable blemishes. A non-scoreable 
blemish is a defect that will not cause the fruit to fail to meet the 
requirements of U.S. No. 1. This relaxation will be in effect for the 
remainder of the 1998 season, and will allow more U.S. No. 1 grade 
fruit to be packed as ``CA Utility'' quality.
    The Nectarine Administrative Committee (NAC) and Peach Commodity 
Committee (PCC) (committees) met on September 15, 1998, to discuss this 
relaxation. At that time, the NAC voted without opposition to recommend 
the increased percentage of U.S. No. 1 nectarines with non-scoreable 
blemishes. The PCC voted with eight in favor and one opposed to 
recommend a similar change. The member opposed believed that it was too 
late in the season to make such a change, that such a change would

[[Page 50462]]

disadvantage those who had already shipped ``CA Utility'' fruit in 
1998, and that more study and analysis of the situation was needed.
    Sections 916.52 and 917.41 of the orders authorize the 
establishment of grade and quality requirements for nectarines and 
peaches, respectively. Prior to the 1996 season, Sec. 916.356 of the 
order's rules and regulations 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 misshapen 
fruit. Under Sec. 917.459 of the order's rules and regulations prior to 
the 1996 season, peaches were also required to meet the requirements of 
U.S. No. 1, except there was a more liberal allowance for open sutures 
that were not ``serious damage.''
    The minimum grade, size, and maturity requirements in Sec. 916.356 
applicable to shipments of California nectarines apply during the 
period April 1 through October 31 each year. The minimum grade, size, 
and maturity requirements in Sec. 917.459 applicable to shipments of 
California peaches apply during the period April 1 through November 23 
each year.
    Since the 1996 shipping season, the nectarine and peach regulations 
have allowed ``CA Utility'' quality to be shipped during the regulatory 
periods. Utility quality is a lower quality fruit than U.S. No. 1.
    Containers marked as ``CA Utility'' must be inspected by the 
Federal or Federal-State Inspection Service and certified as meeting 
the ``CA Utility'' quality requirements. Part of the inspection process 
is to evaluate the fruit in accordance with the requirements of the 
U.S. Standards for Grades of Nectarines, the U.S. Standards for Grades 
of Peaches, and the orders. In conducting inspections, inspectors are 
required to evaluate various blemishes. Some blemishes are serious or 
severe enough to be ``scored'' as defects which are damaging to the 
grade of the fruit, while some other blemishes are either not serious 
or severe enough to affect the grade of the fruit. In the first 
instance, the blemishes are termed ``scoreable'' defects; and in the 
second instance, the blemishes are termed ``non-scoreable.'' It is the 
recommendation of the committees that such non-scoreable blemishes must 
be present on at least one-quarter of the 40 percent of the fruit 
grading U.S. No. 1 in boxes marked ``CA Utility.''
    While containers marked ``CA Utility'' fruit are subject to relaxed 
quality requirements, all other requirements of the orders must be met.
    In addition to the grade requirements, Secs. 916.350 and 917.442 
require each package or container of nectarines and peaches meeting the 
requirements of ``CA Utility,'' to be conspicuously marked with the 
words ``CA Utility'' on a visible display panel.
    Through August 31 of the 1998 season, shipments of ``CA Utility'' 
quality nectarines and peaches have averaged about 4 percent of total 
shipments. In prior seasons, utility quality shipments have been less 
than 2 percent. The increase this season is attributed to quality 
problems resulting from heavy early season rains. Also, hail storms 
later during the season damaged some fruit rendering it unsalable, 
while some fruit sustained only moderate scarring. This is especially 
true for nectarines, whose smooth skin does not provide the same 
protection as the fuzzy exterior of peaches.
    Preliminary studies conducted by the NAC and PCC indicate that some 
consumers, retailers, and foreign buyers 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. In 1997, shipments of ``CA Utility'' nectarines 
represented 1.1 percent of all nectarine shipments, or approximately 
230,000 boxes. Shipments of ``CA Utility'' peaches represented 1.9 
percent of all peach shipments, or 366,000 boxes in 1996. In 1997, 
shipments of ``CA Utility'' peaches represented 1.0 percent of all 
peach shipments, or approximately 217,000 boxes. By contrast, shipments 
of ``CA Utility'' nectarines represents 4.0 percent of all nectarine 
shipments, or approximately 694,881 boxes by August 31 of the 1998 
season. Shipments of ``CA Utility'' peaches represents 4.0 percent of 
all peach shipments, or approximately 544,065 boxes by August 31 of the 
1998 season.
    This rule amends Secs. 916.356 and 917.459 by revising paragraph 
(a)(1) under each section to allow not more than 40 percent U.S. No. 1 
grade fruit to be packed in containers marked as ``CA Utility'' except 
that at least one-quarter of the fruit grading U.S. No. 1 in such 
container must have non-scoreable blemishes.
    At the September 15, 1998, committee meetings, comments supporting 
the recommendation were made by handlers who had experienced incidents 
where the percentage of U.S. No. 1 fruit contained in their ``CA 
Utility'' boxes was found to be higher than permitted by the orders' 
rules and regulations. In those instances, they were forced to repack 
the boxes, move blemished fruit to boxes containing U.S. No. 1 fruit, 
or discard or donate the fruit.
    At least one handler complained that the fruit with non-scoreable 
blemishes was unsightly in the type of U.S. No. 1 box he offered to the 
marketplace and to his customers. His preference was to place the fruit 
with non-scoreable blemishes in boxes marked ``CA Utility.'' The 
limitation of not more than 30 percent U.S. No. 1 fruit in boxes marked 
``CA Utility'' became a greater hindrance as the season progressed. The 
handler noted that an unseasonable morning rain had recently caused 
dark stains on the skin of nectarines, rendering them unsuitable for 
inclusion in his U.S. No. 1 boxes. He preferred including such fruit in 
the ``CA Utility'' boxes, but doing so caused the ``CA Utility'' boxes 
to contain more than the 30 percent U.S. No. 1 fruit permissible.
    A niche market exists for utility quality fruit and an opportunity 
should be made available to market somewhat better quality ``CA 
Utility'' fruit to meet demand. Allowing ten percent more U.S. No. 1 
grade fruit to be packed as ``CA Utility'' quality requirements would 
allow more fruit to be marketed as ``CA Utility'' if handlers prefer to 
do so. ``CA Utility'' quality fruit is generally made available at 
lower prices to especially benefit lower-income consumers.
    Some committee members initially continued to support limiting the 
amount of U.S. No. 1 grade fruit that can be included in a utility pack 
to 30 percent of the total in any container to maintain differences 
between U.S. No. 1 containers and ``CA Utility'' containers. However, 
after further discussion, it was agreed that a greater percentage of 
U.S. No. 1 in a ``CA Utility'' container would not be confusing if such 
fruit is also blemished. It was, therefore, agreed that an additional 
10 percent U.S. No. 1 should be permitted except that every piece of 
fruit in that 10 percent must possess a non-scoreable blemish. This 
relaxation will be in effect for the remainder of the 1998 season. The 
boxes marked ``CA Utility'' would be clearly distinct from boxes 
containing U.S. No. 1 grade. Failure to provide a clear distinction 
could cause confusion in the marketplace and would not meet the goal of 
providing low-cost fruit to low-income consumers. It is the opinion of 
the committees that this relaxation will not cause confusion among 
buyers.
    Data on recent production and shipments of California nectarines 
and peaches appear to indicate that ``CA Utility'' quality fruit can be 
marketed

[[Page 50463]]

successfully without interfering with sales of higher quality fruit. In 
fact, some handlers noted that they used the ``CA Utility'' box as a 
``safety net.'' Fruit which was not good enough to meet their own 
criteria for packing in U.S. No. 1 boxes could be better utilized in 
boxes of ``CA Utility.'' The advent of ``CA Utility'' quality 
requirements has given handlers increased flexibility to improve the 
overall appearance of their U.S. No. 1 shipments.
    For these reasons, the NAC and PCC recommended that for the 
remainder of the 1998 season that the percentage of U.S. No. 1 
nectarines and peaches permitted in containers marked as ``CA Utility'' 
quality be increased from 30 percent to 40 percent except that at least 
one-quarter of the fruit grading U.S. No. 1 in such containers must 
have non-scoreable blemishes. This relaxation will be in effect for the 
remainder of the 1998 season. The committees also voted to review the 
percentages during the winter.
    Pursuant to the 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 initial 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.
    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 service firms, which includes handlers, 
are defined by the Small Business Administration [13 CFR 121.601] as 
those whose annual receipts are less than $5,000,000. Small 
agricultural producers have been defined as those having annual 
receipts of less than $500,000. A majority of these handlers and 
producers may be classified as small entities.
    Under Secs. 916.356 and 917.459 of the orders, grade and size 
requirements are established for fresh shipments of California 
nectarines and peaches, respectively. Such requirements are in effect 
during the period April 1 through October 31 each year for nectarines, 
and April 1 through November 23 for peaches. This rule relaxes, for the 
remainder of the 1998 season, the definition of the ``CA Utility'' 
quality for California nectarines and peaches. The ``CA Utility'' 
quality requirement is based on minimum quality requirements 
established under the California Agricultural Code, with a limitation 
on the amount of fruit meeting U.S. No. 1 or higher grade requirements 
that may be contained in the utility pack. Currently, the ``CA 
Utility'' quality requirement, permits not more than 30 percent of the 
peaches in any container to meet or exceed the requirements of a U.S. 
No. 1. This relaxation increases that percentage to not more than 40 
percent except that at least one-quarter of the fruit grading U.S. No. 
1 in such container must have non-scoreable blemishes. A non-scoreable 
blemish is a defect that does not cause the fruit to fail to meet U.S. 
No. 1 grade requirements. This rule is expected to benefit growers, 
handlers, and consumers.
    Since the 1996 shipping season, the nectarine and peach regulations 
have allowed ``CA Utility'' fruit to be shipped during the regulatory 
periods. Prior to the 1996 season, Sec. 916.356 of the order's rules 
and regulations 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 misshapen fruit. Under 
Sec. 917.459 of the order's rules and regulations prior to the 1996 
season, 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 
that were not ``serious damage. ``CA Utility'' quality is a lower-
quality fruit than U.S. No. 1 and has been regulated since its 
inception in 1996. Through August 31 of the 1998 season, shipments of 
utility quality for both nectarines and peaches have averaged about 4 
percent of total shipments. In prior seasons, utility quality shipments 
have been in the 1 to 2 percent range. The increase so far this season 
is mostly attributed to quality problems resulting from heavy early 
season rains.
    A niche market exists for ``CA Utility'' quality fruit and the 
opportunity should be made available to market somewhat better-quality 
``CA Utility'' fruit to meet demand.
    According to comments made at the meeting on September 15, 1998, 
changing the requirements now to allow additional U.S. No. 1 fruit to 
be packed in ``CA Utility'' containers would not disadvantage those 
handlers who have already finished for the season. Those handlers were 
able to put fruit grading U.S. No. 1 into their U.S. No. 1 containers. 
Since they would have likely wanted to pack such fruit in these 
containers to receive the higher return anticipated for U.S. No. 1 
fruit, they have not been harmed economically. Therefore, no harm has 
been done by implementing this relaxation this late in the season.
    Therefore, the NAC and PCC recommended changing the ``CA Utility'' 
quality at their September 15, 1998, meetings by modifying the 
percentage of U.S. No.1 fruit in each box. The committees also voted to 
review the percentages during the winter.
    In Secs. 916.350 and 917.442 of the orders regulating nectarines 
and peaches, respectively, lower-quality nectarines and peaches were 
authorized for shipment as ``CA Utility'' as an experiment for the 1996 
season only. Such authorization was continued during the 1997 and 1998 
seasons. This rule changes the percentage of U.S. No. 1 nectarines and 
peaches which can be packed in a container marked ``CA Utility'' for 
the remainder of the 1998 season except that the fruit grading U.S. No. 
1 must have a specified percentage of non-scoreable blemishes.
    During the 1996 season, the Department authorized the shipment of 
nectarines and peaches which were of a lower quality than the minimum 
permitted for previous seasons. During 1996, there were approximately 
210,000 boxes of nectarines and approximately 366,000 boxes of peaches 
packed as ``CA Utility,'' or 1.1 percent and 1.9 percent of fresh 
shipments, respectively. During 1997, there were approximately 230,000 
boxes of nectarines and 217,000 boxes of peaches packed as ``CA 
Utility,'' or 1.1 percent and 1.0 percent of fresh shipments, 
respectively. By contrast, shipments of ``CA Utility'' nectarines 
represents 4.0 percent of all nectarine shipments, or approximately 
694,881 boxes by August 31 of the 1998 season. Shipments of ``CA 
Utility'' peaches represents 4.0 percent of all peach shipments, or 
approximately 544,065 boxes by August 31 of the 1998 season. Continued 
availability of ``CA Utility'' quality fruit with the new relaxations 
is expected to have a positive impact on producers, handlers, and 
consumers by permitting more nectarines and peaches to be shipped into 
fresh market channels, without adversely impacting the market for 
higher quality fruit.
    The committees considered several alternatives at the meeting. One 
alternative was to leave the percentage of U.S. No. 1 nectarines and 
peaches permitted in ``CA Utility'' containers

[[Page 50464]]

unchanged. It was determined that alternative would not address the 
problem which faced the industry. The NAC and PCC also considered 
increasing the 30 percent U.S. No. 1 tolerance to not more than 40 
percent or to not more than 50 percent, but determined that such a 
relaxation could render ``CA Utility'' boxes less distinctive from U.S. 
No. 1 and create confusion in the marketplace. Another alternative 
included a requirement that at least 90 percent of the individual 
fruits in all boxes marked with ``CA Utility'' possess defects. Such a 
requirement would create a box of fruit which would be distinct from 
U.S. No. 1 due to a greater number of defects present. However, this 
alternative was determined to be unacceptable because it represented 
too radical a change of ``CA Utility'' quality given the emergency 
nature of the recommendation. This alternative fails to offer a sound 
basis for comparison with the current requirement of not more than 30 
percent U.S. No. 1 because it does not reference the U.S. No. 1 grade. 
Such comparison may be necessary as the committees continue to study 
marketplace reaction to changes in quality requirements of ``CA 
Utility.'' fruit.
    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. In accordance with 
the Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35), the 
information collection requirements that are contained in Parts 916 and 
917 have been previously approved by the Office of Management and 
Budget (OMB) and have been assigned OMB Nos. 0581-0072 and 0581-0080, 
respectively.
    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 
September 15, 1998, 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.
    This rule reflects the Department's appraisal of the need to revise 
the quality requirements for California nectarines and peaches. The 
Department believes that this rule will have a beneficial impact on 
producers, handlers, and consumers of California nectarines and 
peaches.
    After consideration of all relevant matter presented, including the 
information and recommendations submitted by the Committees, and other 
available information, it is hereby found that this rule, as 
hereinafter set forth, will tend to effectuate the declared policy of 
the Act.
    It is further found that good cause exists for not postponing the 
effective date of this rule until 30 days after publication in the 
Federal Register (5 U.S.C. 553) because this rule should apply to as 
many shipments of California nectarines and peaches as possible. The 
shipping seasons for both California nectarines and peaches began on 
April 1, 1998. To maximize the effectiveness of this relaxation prior 
to the end of the season, this rule needs to be in place as soon as 
possible. Further, handlers are aware of this rule, which was 
recommended and discussed in public meetings of the committees and no 
additional time is needed for those handlers to comply with the relaxed 
quality requirements. Finally, a 15-day comment period is provided for 
in this interim final rule, and any written comments received will be 
considered in the finalization of this interim final rule. A 15-day 
comment period is appropriate because the end of the season is quickly 
approaching.

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. In Sec. 916.356, paragraph (a)(1) introductory text, the last 
proviso in the first sentence and the last phrase are revised to read 
as follows:


Sec. 916.356  California Nectarine Grade and Size Regulation.

    (a) * * *
    (1) * * * Provided further, That, during the period September 23, 
1998, through October 31, 1998, any handler may handle nectarines if 
such nectarines meet ``CA Utility'' quality requirements. The term ``CA 
Utility'' means that not more than 40 percent of the nectarines in any 
container meet or exceed the requirements of the U.S. No. 1 grade, 
except that at least one-quarter of the fruit grading U.S. No. 1 grade 
shall have non-scoreable blemishes as determined when applying the U.S. 
Standards for Grades of Nectarines; and that such nectarines are mature 
and are:
* * * * *

PART 917--FRESH PEARS AND PEACHES GROWN IN CALIFORNIA

    3. In Sec. 917.459, paragraph (a)(1) introductory text, the last 
proviso in the first sentence and the last phrase are revised to read 
as follows:
    (a) * * *
    (1) * * * Provided further, That during the period September 23, 
1998, through November 23, 1998, any handler may handle peaches if such 
peaches meet ``CA Utility'' requirements. The term ``CA Utility'' means 
that not more than 40 percent of the peaches in any container meet or 
exceed the requirements of the U.S. No. 1 grade, except that at least 
one-quarter of the fruit grading U.S. No. 1 grade shall have non-
scoreable blemishes as determined when applying the U.S. Standards for 
Grades of Peaches; and that such peaches are mature and are:
* * * * *
    Dated: September 18, 1998.
Robert C. Keeney,
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 98-25398 Filed 9-21-98; 8:45 am]
BILLING CODE 3410-02-P