[Federal Register Volume 65, Number 56 (Wednesday, March 22, 2000)]
[Rules and Regulations]
[Pages 15205-15214]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-7086]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 916 and 917

[Docket No. FV00-916-1 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.

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SUMMARY: This rule revises the handling requirements for California 
nectarines and peaches by modifying the grade, size, maturity, and 
container marking requirements for fresh shipments of these fruits, 
beginning with 2000 season shipments. This rule also modifies the 
requirements for placement of Federal-State Inspection Service lot 
stamps for the 2000 season only. The marketing orders regulate the 
handling of nectarines and peaches grown in California and are 
administered locally by the Nectarine Administrative and Peach 
Commodity Committees (committees). 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, 2000; comments received by May 22, 2000, will 
be considered prior to issuance of any final rule.

[[Page 15206]]


ADDRESSES: Interested persons are invited to submit written comments 
concerning this rule. Comments must be sent to the Docket Clerk, Fruit 
and Vegetable Programs, AMS, USDA, room 2525-S, P.O. Box 96456, 
Washington, DC 20090-6456; Fax: (202) 720-5698, or E-mail: 
[email protected]. 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 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) 720-5698.
    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, DC 20090-6456; telephone: (202) 720-2491; Fax: 
(202) 720-5698, or E-mail: [email protected].

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
Agreements 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 marketing agreements and 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, lot stamping, 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), which are responsible for local 
administration of the orders, met on November 30, 1999, and unanimously 
recommended that these handling requirements be revised for the 2000 
season, which begins April 1. The changes: (1) Revise the lot stamping 
requirements for the 2000 season only; (2) authorize shipments of ``CA 
Utility'' quality fruit to continue during the 2000 season; (3) 
eliminate the minimum letter height of maturity marking requirements 
for all containers; (4) provide a tolerance for the ``Peento'' or 
``donut'' types of peaches for healed, non-serious, blossom-end growth 
cracks; and (5) revise varietal maturity, quality, and size 
requirements to reflect recent changes in growing conditions.
    The committees meet prior to and during each season to review the 
rules and regulations effective on a continuing 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.
    No official crop estimate was available at the time of the 
committees' meetings because the nectarine and peach trees were 
dormant. The committees will recommend a crop estimate at their 
meetings in early spring. However, preliminary estimates indicate that 
the 2000 crop will be similar in size and characteristics to the 1999 
crop which totaled 20,405,000 boxes of nectarines and 20,460,000 boxes 
of peaches.

Lot Stamping Requirements

    Sections 916.55 and 917.45 of the orders require inspection and 
certification of nectarines and peaches, respectively, handled by 
handlers. Sections 916.115 and 917.150 of the nectarine and peach 
orders' rules and regulations, respectively, require that all exposed 
or outside containers of nectarines and peaches, and at least 75 
percent of the total containers on a pallet, be stamped with the 
Federal-State Inspection Service (inspection service) lot stamp number 
after inspection and prior to shipment to show that the fruit has been 
inspected. These requirements apply except for containers that are 
loaded directly onto railway cars, or exempted, or mailed directly to 
consumers in consumer packages.
    Lot stamp numbers are assigned to each handler by the inspection 
service, and are used to identify the handler and the date on which the 
container was packed. The lot stamp number is also used by the 
inspection service to identify and locate the corresponding inspector's 
working papers or notes. Working papers are the documents each 
inspector completes while performing an inspection on a lot of 
nectarines or peaches. Information contained in the working papers 
supports the grade levels certified by the inspector at the time of 
inspection.
    The lot stamp number has value for the industries, as well. The 
committees utilize the lot stamp numbers and date codes to trace fruit 
in the container back to the orchard where harvested. This information 
is essential in providing quick information for a crisis management 
program instituted by the industries. Without the lot stamp information 
on each container, the ``trace-back'' effort, as it is called, would be 
jeopardized.
    Recently, several new containers have been introduced for use by 
nectarine and peach handlers. The boxes are returnable plastic 
containers which retailers send back to a central clearinghouse after 
use. Use of these boxes may represent substantial savings to retailers 
for storage and disposal, as well as for handlers who do not have to 
pay for traditional containers. Fruit is packed in the boxes by the 
handler, delivered to the retailer, emptied, and returned to the 
clearinghouse for cleaning and redistribution. However, because they 
were designed to be reused, these boxes do not support

[[Page 15207]]

markings that are permanently affixed to the container. All markings 
must be printed on cards which slip into tabs on the front or sides of 
the containers. The cards are easily inserted and removed, and further 
contribute to the efficient use of the container.
    The cards are a concern for the inspection service and the 
industries, however. Because of their unique portability, there is some 
concern that the cards on pallets of inspected containers could easily 
be moved to pallets of uninspected containers, thus permitting a 
handler to avoid inspection on a lot or lots of nectarines or peaches. 
This would also jeopardize the use of the lot stamp numbers for the 
industries' ``trace back'' program.
    To address this concern, the committees have recommended that 
pallets of inspected fruit be identified with a USDA-approved pallet 
tag containing the lot stamp number, in addition to the lot stamp 
number printed on the card on the container. In this way, an audit 
trail is created, confirming that the lot stamp number on the 
containers on each pallet correspond to the lot stamp number on the 
pallet tag.
    The inspection service and the committees have presented their 
concerns to the manufacturers of these types of boxes. One manufacturer 
has indicated a willingness to address the problem by offering an area 
on the principle display panel where the container markings will adhere 
to the box, which will meet the needs of the industries, the inspection 
service, and the manufacturer. However, the manufacturer believes that 
this change may not be available in time for the 2000 season. For that 
reason, the committees further recommended that the proposed 
modification of the lot stamping requirements be put into place for the 
2000 season only.
    Thus, Secs. 916.115 and 917.150 will be amended to require the lot 
stamp number to be adhered to a USDA-approved pallet tag, in addition 
to the requirement that the number be applied to cards on all exposed 
or outside containers, and not less than 75 percent of the total 
containers on a pallet.
    A conforming change is made to Sec. 917.150 by changing the word 
``but'' to ``and,'' making the language in this section similar to that 
in Sec. 916.115.

Grade and Quality Requirements

    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 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. Prior to the 1996 season, 
Sec. 917.459 required peaches to meet the requirements of a U.S. No. 1 
grade, except for a more liberal allowance for open sutures that were 
not ``serious damage.''
    This rule revises Sec. 916.350, Sec. 916.356, Sec. 917.442, and 
Sec. 917.459 to permit shipments of nectarines and peaches meeting ``CA 
Utility'' quality requirements during the 2000 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 permitted during the 1996 and 1997 
seasons, and also during the 1998 and 1999 seasons with slight 
modifications.
    Studies conducted by the NAC and PCC indicate that some consumers, 
retailers, and foreign importers found the lower quality fruit 
acceptable in some markets. When shipments of ``CA Utility'' nectarines 
were first permitted in 1996, they only represented 1.1 percent of all 
nectarine shipments, or approximately 210,000 boxes. Shipments of ``CA 
Utility'' peaches represented 1.9 percent of all peach shipments, or 
366,000 boxes. By 1998 and 1999, shipments of ``CA Utility'' nectarines 
represented 4.5 percent and 4.0 percent, respectively, of all nectarine 
shipments; or approximately 760,000 boxes and 819,600 boxes, 
respectively. In 1998 and 1999, shipments of ``CA Utility'' peaches 
represented 3.3 percent and 3.4 percent, respectively, of all peach 
shipments; or approximately 602,000 boxes and 689,800 boxes, 
respectively.
    For these reasons, the committees unanimously recommended that 
shipments of ``CA Utility'' quality nectarines and peaches be permitted 
for the 2000 season with a continuing in-house statistical review. 
Paragraphs (d) of Secs. 916.350 and 917.442, and paragraphs (a)(1) of 
Secs. 916.356 and 917.459 are revised to permit shipments of nectarines 
and peaches meeting ``CA Utility'' quality requirements during the 2000 
season, on the same basis as last season.
    In addition, paragraph (a)(1) of Sec. 917.459 is revised to provide 
a 10 percent tolerance for healed, non-serious, blossom-end growth 
cracks for the ``Peento'' or ``donut'' varieties of peaches, such as 
the ``Saturn'' and ``Jupiter'' varieties.
    These varieties of peaches characteristically suffer blossom-end 
(calyx basin) cracks during development. These cracks heal as the 
growth continues and as the fruit gains size. Generally, the cracks are 
completely healed by harvest. Peaches with unhealed or serious blossom-
end growth cracks at the time of inspection would not be included in 
U.S. No. 1 or ``CA Utility'' packages. Such a relaxation will permit 
handlers of the Peento type of peaches to utilize more of these fruit 
in boxes of U.S. No. 1 peaches, benefitting both handlers and growers 
of these varieties.
    The PCC unanimously recommended this additional tolerance of 10 
percent for healed, non-serious, blossom-end growth cracks for the 
Peento type of peaches, beginning in the 2000 season.

Container Marking Requirements

    Sections 916.52 and 917.41 of the nectarine and peach orders, 
respectively, authorize container marking requirements. Requirements 
for container markings are specified in Secs. 916.350 and 917.442 of 
the orders' rules and regulations. Container marking requirements 
include marking of the commodity and variety (e.g., Fay Elberta 
peaches), the size of the fruit in the box (e.g., 88 size), the net 
weight, and the maturity (either U.S. Mature (US MAT) or California 
Well Matured (CA WELL MAT)), on each container of nectarines or 
peaches.
    As innovative containers enter the marketplace, especially those 
preferred by retailers, the configuration of display panels changes. 
This is true for both retail and consumer-size containers. As a result, 
handlers are forced to make adjustments in their container markings to 
accommodate the differences in display panels. Some containers, such as 
those intended for purchase by individual consumers, are smaller and 
have less display-panel surface area, and meeting all the minimum size 
labeling requirements is difficult. Some handlers requested a 
relaxation in the container labeling requirements with regard to the 
fruit maturity marking, and the committees agreed that a modification 
would be appropriate. This relaxation will eliminate the minimum 
lettering height in favor of a requirement that fruit maturity markings 
be clear and legible. Therefore, paragraphs (a)(3) of Secs. 916.350 and 
917.442 are so modified.

Maturity Requirements

    Both orders provide (in Secs. 916.52 and 917.41) authority to 
establish maturity requirements for nectarines and peaches, 
respectively. The minimum maturity level currently specified for 
nectarines and peaches is ``mature'' as defined in the standards. 
Additionally,

[[Page 15208]]

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 individual 
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 as TABLE 1 in Secs. 916.356 and 917.459, 
for nectarines and peaches, respectively.
    The requirements in the 2000 handling regulation are the same as 
those that appeared in the 1999 handling regulation with a few 
exceptions. Those exceptions are explained in this rule.
    Nectarines: Requirements for ``well-matured'' nectarines are 
specified in Sec. 916.356 of the order's rules and regulations. While 
SPI made no recommendation with regard to changes to the NAC regarding 
maturity guides, the committee recommended removal of several varieties 
of nectarines from the maturity guides.
    This rule revises TABLE 1 of paragraph (a)(1)(iv) of Sec. 916.356 
to remove 12 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 12 of the 
nectarine varieties currently listed in the maturity guide have not 
been in production since the 1997 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 Apache, Arm King, Bob Grand, Flavor Grand, 
Flavortop I, Maybelle, Mike Grand, Pacific Star, Son Red, Summer Star, 
Sunfre, and Tasty Gold nectarine varieties.
    Peaches: Section 917.459 of the order's rules and regulations 
specifies maturity requirements for fresh peaches being inspected and 
certified as being ``well matured.''
    This rule revises TABLE 1 of paragraph (a)(1)(iv) of Sec. 917.459 
to add maturity guides for 2 peach varieties and revise the maturity 
guide for 1 variety. Specifically, SPI recommended adding the maturity 
guides for the Earli Rich peach variety to be regulated at the H 
maturity guide, and the Late Ito Red peach variety to be regulated at 
the L maturity guide. SPI also recommended a modification to the 
current maturity guide for the Autumn Rose peach variety, changing the 
maturity guide from the I to the H maturity guide.
    This rule also corrects the reference to the Ambercrest peach 
variety listed in TABLE 1 of paragraph (a)(1)(iv). The correct name of 
the variety is ``Amber Crest.''
    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.
    TABLE 1 of paragraph (a)(1)(iv) of Sec. 917.459 is also revised to 
remove 15 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 15 of the peach 
varieties currently listed in the maturity guide have not been in 
production since the 1997 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 August Sun, Autumn Crest, Belmont(Fairmont), 
Berenda Sun, Fayette, Golden Crest, Golden Lady, June Sun, Mary Anne, 
Parade, Pat's Pride, Prima Lady, Red Cal, Scarlet Lady, and Springold 
peach varieties.

Size Requirements

    Both orders provide (in Secs. 916.52 and 917.41) authority to 
establish size requirements. Size regulations cause producers to leave 
fruit on the tree longer. This increased growing time not only improves 
the size of the fruit, but also increases its maturity. In addition, 
increased size results in an increased number of packed boxes of 
nectarines or peaches per acre. Acceptable size fruit also provides 
greater consumer satisfaction and more repeat purchases, and, 
therefore, increases returns to producers and handlers. Varieties 
recommended for specific size regulation have been reviewed and such 
recommendations are based on the specific characteristics of each 
variety. 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 of the order's rules and regulations 
specifies minimum size requirements for fresh nectarines in paragraphs 
(a)(2) through (a)(9). This rule revises Sec. 916.356 to establish 
variety-specific minimum size requirements for 14 nectarine varieties 
that were produced in commercially-significant quantities of more than 
10,000 packages for the first time during the 1999 season. This rule 
also removes the variety-specific minimum size requirements for 6 
varieties of nectarines whose shipments fell below 5,000 packages 
during the 1999 season.
    For example, one of the varieties recommended for addition to the 
variety-specific minimum size requirements is the Diamond Jewel 
nectarine variety. Studies of the size ranges attained by the Diamond 
Jewel variety revealed all but one box of that variety met minimum 
sizes 50, 60, 70, and 80 during the 1999 season. The one box reportedly 
met a minimum size 88. While the size distribution peaked on the size 
70, 100 percent of the fruit sized at a minimum of size 88.
    A review of other varieties with the same harvesting period 
indicated that Diamond Jewel was also comparable to those varieties in 
its size ranges for that time period. Discussions with handlers known 
to handle the variety confirmed this information regarding minimum size 
and harvesting period, as well. Thus, the recommendation to place the 
Diamond Jewel 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. In addition, producers and 
handlers of the varieties affected are personally invited to comment 
when such size recommendations are deliberated. Producer and handler 
comments are also considered at both NAC and subcommittee meetings when 
such comments are received by the staff.
    For reasons similar to those discussed in the preceding paragraph, 
the introductory text of paragraph (a)(4) of Sec. 916.356 is revised to 
include the Diamond Jewel, Kay Sweet, and White Sun nectarine 
varieties; and the introductory text of paragraph (a)(6) in 
Sec. 916.356 is revised to include the Arctic Blaze, Arctic Gold, 
Arctic Jay, Cole Red, Fire Sweet, Honey Blaze, Kay Bright, Prima 
Diamond XVIII, Regal Pearl, Ruby Sweet, and White September nectarine 
varieties.
    This rule also revises the introductory text of paragraph (a)(4) of 
Sec. 916.356 to remove 2 nectarine varieties from the variety-specific 
minimum size requirements specified in the section because less than 
5,000 packages of each

[[Page 15209]]

of these varieties were produced during the 1999 season. Thus, the 
introductory text of paragraph (a)(4) is revised to remove the Early 
May and Prima Diamond VI nectarine varieties.
    This rule also revises the introductory text of paragraph (a)(6) of 
Sec. 916.356 to remove 4 nectarine varieties from the variety-specific 
minimum size requirements specified in the section because less than 
5,000 packages of each of these varieties were produced during the 1999 
season. Thus, the introductory text of paragraph (a)(6) is revised to 
remove the Flavortop, Flavortop I, How Red (Sunectnineteen) and the 
491-48 nectarine varieties.
    The Gran Sun nectarine variety had 1999 shipments of 2,939 
packages, but was not recommended for removal from variety-specific 
size requirements because the variety is expected to increase in 
commercial significance during the 2000 season. Inclement weather, 
including the cool spring and frost damage, is considered to be a 
factor in the decreased production during the 1999 season.
    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 of the order's rules and regulations 
specifies minimum size requirements for fresh peaches in paragraphs 
(a)(2) through (a)(6), and paragraphs (b) and (c). This rule revises 
Sec. 917.459 to establish variety-specific minimum size requirements 
for 16 peach varieties that were produced in commercially-significant 
quantities of more than 10,000 packages for the first time during the 
1999 season. This rule also removes the variety-specific minimum size 
requirements for 4 varieties of peaches whose shipments fell below 
5,000 packages during the 1999 season.
    One of the varieties recommended for addition to the variety-
specific size requirements is the Brittany Lane variety. Studies of the 
size ranges attained by the Brittany Lane variety revealed that while 
the size distribution peaked on size 50, all of the boxes of that 
variety met at least the size 80 requirement.
    A review of other varieties of the same harvesting period indicated 
that Brittany Lane was also comparable to those varieties in its size 
ranges. Discussions with handlers known to handle the variety confirmed 
this information regarding minimum size and harvesting period, as well. 
Thus, the recommendation to place the Brittany Lane variety in the 
variety-specific size regulation at a size 80 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 addition, producers of the 
affected varieties are invited to comment when such size 
recommendations are deliberated. Producer and handler comments are also 
considered at both PCC and subcommittee meetings when such comments are 
received by the staff.
    In Sec. 917.459 of the order's rules and regulations, the 
introductory text of paragraph (a)(5) is revised to include the 
Brittany Lane, Snow Prince, Zee Diamond, 012-094, and 172LE White Peach 
(Crimson Snow/Sunny Snow) peach varieties; and the introductory text of 
paragraph (a)(6) is revised to include the Country Sweet, Earli Rich, 
Full Moon, Late September Snow, N117, Queen Lady, Red Sun, Sierra Gem, 
Snow Blaze, Sweet Kay, and Sweet September peach varieties.
    This rule also revises Sec. 917.459 to remove 4 peach varieties 
from the variety-specific size requirements specified in that section, 
because less than 5,000 packages of this variety were produced during 
the 1999 season. In Sec. 917.459, the introductory text of paragraph 
(a)(5) is revised to remove the Golden Crest (Supechthree) peach 
variety and the introductory text of paragraph (a)(6) of Sec. 917.459 
is revised to remove the Snow Diamond, Sparkle, and 1-01-505 peach 
varieties.
    The Super Rich peach variety had 1999 shipments of 3,941 packages, 
but was not recommended for removal from variety-specific size 
requirements because the variety is expected to increase in commercial 
significance during the 2000 season. Inclement weather, including the 
cool spring and frost damage, is considered to be a factor in the 
decreased production during the 1999 season.
    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 fruit sizes. 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 has determined 
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 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 as those whose annual receipts are less than $5,000,000. 
Small agricultural producers have been defined by the Small Business 
Administration [13 CFR 121.201] as those having annual receipts of less 
than $500,000. A majority of these handlers and producers may be 
classified as small entities.
    The committees' staff have estimated that there are less than 20 
handlers in the industry who could be defined as

[[Page 15210]]

other than small entities. If the average handler price received were 
$9.00 per box or box equivalent of nectarines or peaches, a handler 
would have to ship at least 555,000 boxes to have annual receipts of 
$5,000,000. Small handlers represent approximately 94 percent of the 
handlers within the industry. If the average producer price received 
were $6.00 per box or box equivalent for nectarines and $5.65 per box 
or box equivalent for peaches, producers would have to produce 
approximately 84,000 boxes or box equivalents of nectarines and 
approximately 89,000 boxes or box equivalents of peaches to have annual 
receipts of $500,000. Therefore, small producer entities are estimated 
to represent approximately 78 percent of the producers within the 
industry. For those reasons, a majority of the handler and producers 
may be classified as small entities.
    Under Secs. 916.52 and 917.41 of the orders, lot stamping, grade, 
size, maturity, and container and pack requirements are established for 
fresh shipments of California nectarines and peaches, respectively. 
Such requirements are in effect on a continuing basis. This rule 
revises current requirements to: (1) Revise the lot stamping 
requirements for the 2000 season only; (2) authorize shipments of ``CA 
Utility'' quality fruit to continue during the 2000 season; (3) 
eliminate the minimum size of maturity marking requirements for all 
containers; (4) provide a tolerance for the ``Peento'' or ``donut'' 
types of peaches for healed, non-serious, blossom-end growth cracks; 
and (5) revise varietal maturity, quality, and size requirements to 
reflect recent changes in growing conditions.
    In Secs. 916.115 and 917.150 of the orders' rules and regulations, 
respectively, handlers are required to stamp containers of nectarines 
and peaches with the Federal-State Inspection Service lot stamp number 
after inspection and prior to shipment. New, returnable containers, 
which do not support permanent markings, utilize printed cards which 
contain the lot stamp number, date codes, and other container marking 
requirements. The printed cards are easily inserted into tabs on the 
front or sides of the containers. The ease of portability of these 
cards creates problems for both the inspection service and the 
industries in tracking the containers. Cards on a pallet of inspected 
fruit could be easily moved to a pallet of uninspected fruit, thus 
permitting a handler to circumvent inspection requirements. The 
inspection service and the committees have recommended that each pallet 
of inspected nectarines and peaches be marked with a pallet tag 
containing the lot stamp number, in addition to the lot stamp number 
provided on the card on the containers.
    The committees believe that this recommendation should be limited 
to the 2000 season only, since at least one manufacturer anticipates 
the availability of an area on the principle display panel where the 
container markings will adhere to the box, which will meet the needs of 
the industries, inspection service, and the manufacturer. However, the 
manufacturer believes that this change may not be available in time for 
the 2000 season. For that reason, the committees further recommended 
that the proposed modification of the lot stamping requirements be put 
into place for the 2000 season only.
    In 1996, Secs. 916.350 and 917.442 were revised to permit shipments 
of lower-quality nectarines and peaches, known as ``CA Utility,'' as an 
experiment for the 1996 season only. Such authorization was continued 
during the 1997, 1998, and 1999 seasons. This rule permits the 
continued use of ``CA Utility'' quality fruit for the 2000 season with 
a continued in-house statistical review to be conducted by the NAC and 
PCC. 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 210,443 boxes 
of nectarines and 365,761 boxes of peaches packed as ``CA Utility,'' or 
1.1 percent and 1.9 percent of fresh shipments, respectively. During 
1997, there were 230,275 boxes of nectarines and 216,562 boxes of 
peaches packed as ``CA Utility,'' or 1.1 percent and 1.0 percent of 
fresh shipments, respectively. In 1998, there were 760,000 boxes of 
nectarines and 602,000 boxes of peaches packed as ``CA Utility,'' or 
4.5 percent and 3.3 percent of fresh shipments, respectively. In 1999, 
there were 819,600 boxes of nectarines and 689,800 boxes of peaches 
packed as ``CA Utility,'' or 4.0 percent and 3.4 percent of fresh 
shipments, 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 to be shipped into fresh market 
channels, without adversely impacting the market for higher quality 
fruit.
    Sections 916.356 and 917.442 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), as reviewed by SPI. Such maturity guides provide 
producers, handlers, and SPI with objective tools for measuring the 
maturity of different varieties of nectarines and peaches. Such 
maturity guides are reviewed annually by SPI 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 maturity, thus ensuring consumer satisfaction while benefitting 
nectarine and peach producers and handlers.
    Currently, in Sec. 916.356 of the order's rules and regulations for 
nectarines and Sec. 917.459 of the order's rules and regulations for 
peaches, minimum sizes for various varieties of nectarines and peaches 
are established. This rule makes adjustments to the minimum sizes 
authorized for various varieties of nectarines and peaches for the 2000 
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. 
Increased fruit size and maturity also provide 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, 
and producer and handler information regarding sizes which the 
different varieties attain.
    The recommendations with regard to maturity markings on containers, 
continuation of authority to ship nectarines and peaches which meet the 
``CA Utility'' quality requirements, and an increased tolerance for 
Peento type of peaches, are relaxations. These regulations are intended 
to provide increased flexibility for handlers of nectarines and 
peaches.
    The committees made recommendations regarding these revisions in 
handling requirements after considering all available information, 
including comments of persons at three subcommittee meetings. The Grade 
and Size Subcommittee met on November 9, 1999, the Management Services 
Committee met on November 17, 1999, and the Returnable Plastic 
Container Task Force met on November 23, 1999. At the meetings, the 
impact of and

[[Page 15211]]

alternatives to these recommendations were discussed.
    At the Grade and Size Subcommittee, the members discussed 
recommendations of SPI with regard to maturity guides, and 
recommendations of staff with regard varietal sizing and grades. SPI 
recommended maturity guides for two varieties of peaches and also 
recommended a change in maturity guides for an established variety. SPI 
made no recommendations to add or change any maturity guides for 
nectarines. The staff made recommendations to remove varieties of 
nectarines and peaches from the maturity listings which are no longer 
in commercial production.
    The staff also made recommendations to add nectarine and peach 
varieties to the variety specific size requirements, based upon 
internal studies of the sizing characteristics of those nectarines and 
peaches. These nectarine and peach varieties were packed in 
commercially-significant quantities of 10,000 packages or more during 
the 1999 season. Also, the staff made recommendations to remove 
nectarine and peach varieties from the variety specific sizing 
requirements, based upon information indicating that less than 5,000 
packages of those varieties were packed in the 1999 season and that the 
shipments of those varieties are expected to continue to decline in 
commercial significance. The committees routinely review their 
regulations and add varieties of which more than 10,000 packages are 
packed in a season; or remove varieties of which less than 5,000 
packages are packed in a season. The alternative to these requirements 
would be for the more popular varieties to be subject to the less 
precise general sizing regulations. This alternative was rejected since 
it would ultimately increase the amount of less acceptable fruit being 
marketed to consumers. Such a result would be contrary to the long-term 
interests of producers, handlers, and consumers.
    At the Grade and Size Subcommittee meeting, a handler recommended 
eliminating the required minimum letter height for maturity markings 
for all types of containers. The handler noted that some boxes 
preferred by retailers have limited amounts of space on the display 
panels, especially consumer boxes. He suggested that the lettering 
height minimum for the maturity markings be eliminated in favor of 
clear and legible markings. Any alternatives, he noted, would fall 
short of the need to provide handlers the necessary maturity marking 
flexibility. He added that with all the required markings for variety, 
commodity, etc., very little room is left on the display panel and 
markings may nearly overlap. His recommendation and those of SPI and 
the staff were approved unanimously.
    At the Returnable Plastic Container Task Force meeting, the 
participants discussed the most expedient method to ensure that lot 
stamp numbers and date codes could be affixed to containers of 
nectarines and peaches to allow such containers to be adequately 
tracked, which would meet the needs of the inspection service and the 
industries. The members also met with a manufacturer of one of the 
returnable boxes, who expressed a willingness to cooperate with the 
industries in finding a solution to the problem of the highly-portable 
cards on the containers.
    Alternatives offered included leaving container marking 
requirements unchanged, eliminating lot stamp numbers as a required 
marking, and permitting shipments of nectarines and peaches in these 
containers without restrictions on the cards. By leaving container 
marking requirements unchanged, handlers would be precluded from 
providing nectarines and peaches in containers advocated by receiving 
retailers. Eliminating lot stamp numbers as a required marking is 
unacceptable to both the inspection service and the industry. Allowing 
returnable, plastic containers to be shipped with the highly portable 
cards is also unacceptable since the portability of the cards could 
enable a handler to evade inspection on a lot or lots of nectarines or 
peaches by moving the cards to uninspected containers, and could 
jeopardize the industries' ``trace back'' program. All of these 
alternatives were, therefore, rejected.
    At the Management Services Committee meeting, the members reviewed 
all subcommittee recommendations available to them. The members of the 
Management Services Committee include the chairpersons and vice-
chairpersons of the committees, who generally have many years 
experience working in the industries. They, too, discussed 
recommendations of subcommittees and were free to make alternative 
recommendations or revise recommendations to the committees, as they 
reviewed such recommendations.
    Like committee meetings, subcommittee meetings are open to the 
public and comments are widely solicited.
    This rule 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 et seq.). 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. These meetings are held annually 
during the last week of November or first week of December. Like all 
committee meetings, the November 30, 1999, 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. Finally, interested persons are invited to submit 
information on the regulatory and informational impacts of this action 
on small businesses.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at the 
following website: http://www.ams.usda.gov/fv/moab.html. Any questions 
about the compliance guide should be sent to Jay Guerber at the 
previously mentioned address in the FOR FURTHER INFORMATION CONTACT 
section.
    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.
    This rule invites comments on a change to the handling requirements 
currently prescribed under the marketing orders for California fresh 
nectarines and peaches. Any comments received will be considered prior 
to finalization of this rule.
    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,

[[Page 15212]]

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) 
this rule relaxes container marking requirements for all containers; 
and (4) the committees unanimously recommended these changes at a 
public meeting and interested persons had an opportunity to provide 
input; and (5) the rule provides a 60-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 916.115 is revised to read as follows:


Sec. 916.115  Lot stamping.

    Except when loaded directly into railway cars, exempted under 
Sec. 916.110, or for nectarines mailed directly to consumers in 
consumer packages, all exposed or outside containers of nectarines, and 
not less than 75 percent of the total containers on a pallet, shall be 
plainly stamped, prior to shipment, with a Federal-State Inspection 
Service lot stamp number, assigned by such Service, showing that such 
fruit has been USDA inspected in accordance with Sec. 916.55: Provided, 
That for the period April 1 to October 31, 2000, pallets of returnable 
plastic containers shall have the lot stamp numbers affixed to each 
pallet with a USDA-approved pallet tag, in addition to the lot stamp 
numbers and other required information on cards on the individual 
containers.
    3. Section 916.350 is amended by:
    a. Revising paragraphs (a)(3) and
    b. Revising paragraph (d) to read as follows:


Sec. 916.350  California nectarine container and pack regulation.

    (a) * * *
    (3) Each package or container of nectarines, except for consumer 
packages in master containers and consumer packages mailed directly to 
consumers, shall bear on one outside end clearly and legibly in plain 
sight and in plain letters the words ``U.S. Mature'' or ``US MAT'' if 
such nectarines are mature as defined in the United States Standards 
for Grades of Nectarines (7 CFR 51.3145 through 51.3160); or may 
instead bear on one outside end clearly and legibly in plain sight and 
in plain letters the words ``California Well Matured'' or ``CA WELL 
MAT'' if such nectarines are well matured as defined in Sec. 916.356.
* * * * *
    (d) During the period April 1 through October 31, 2000, each 
container or package when packed with nectarines meeting the ``CA 
Utility'' quality requirements, shall bear the words ``CA Utility,'' 
along with all other required container markings, in letters at least 
\3/8\ inch in height on the visible display panel. Consumer bags or 
packages must also be clearly marked on the consumer bags or packages 
as ``CA Utility,'' along with other required markings, in letters at 
least \3/8\ inch in height.
* * * * *
    4. Section 916.356 is amended by:
    a. Revising the introductory text of paragraph (a)(1);
    b. Revising TABLE 1 of paragraph (a)(1)(iv); and,
    c. Revising the introductory text of paragraphs (a)(3), (a)(4) and 
(a)(6), 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 misshapen: Provided further, That all varieties of nectarines 
which fail to meet the U.S. No. 1 grade only on account of lack of 
blush or red color due to varietal characteristics shall be considered 
as meeting the requirements of this subpart: Provided further, That 
during the period April 1 through October 31, 2000, 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 when more than 30 
percent of the nectarines in any container meet or exceed the 
requirements of U.S. No. 1 grade, the additional 10 percent 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:
* * * * *
    (iv) * * *

                                 Table 1
------------------------------------------------------------------------
             Column A  variety                 Column B  maturity guide
------------------------------------------------------------------------
Alshir Red.................................  J
April Glo..................................  H
August Glo.................................  L
August Lion................................  J
August Red.................................  J
Aurelio Grand..............................  F
Autumn Delight.............................  L
Autumn Grand...............................  L
Big Jim....................................  J
Diamond Jewel..............................  L
Diamond Ray................................  L
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
Flavortop..................................  J
Grand Diamond..............................  L
Independence...............................  H
July Red...................................  L
June Brite.................................  I
Juneglo....................................  H
Kay Diamond................................  L
King Jim...................................  L
Kism Grand.................................  J
Late Le Grand..............................  L
Late Red Jim...............................  J
May Diamond................................  I
May Fire...................................  H
Mayglo.....................................  H
May Grand..................................  H
May Jim....................................  I
May Kist...................................  H
May Lion...................................  J
Mid Glo....................................  L
Moon Grand.................................  L
Niagara Grand..............................  H
P-R Red....................................  L
Red Diamond................................  L
Red Delight................................  I
Red Fred...................................  J
Red Free...................................  L
Red Glen...................................  J

[[Page 15213]]

 
Red Glo....................................  I
Red Grand..................................  H
Red Jim....................................  L
Red May....................................  J
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
Sparkling June.............................  L
Sparkling May..............................  J
Sparkling Red..............................  L
Spring Bright..............................  L
Spring Diamond.............................  L
Spring Red.................................  H
Star Brite.................................  J
Summer Beaut...............................  H
Summer Blush...............................  J
Summer Bright..............................  J
Summer Diamond.............................  L
Summer Fire................................  L
Summer Grand...............................  L
Summer Lion................................  L
Summer Red.................................  L
Sunburst...................................  J
Sun Diamond................................  I
Sun Grand..................................  G
Super Star.................................  G
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.

* * * * *
    (3) Any package or container of Mayglo variety of nectarines on or 
after May 6 of each year, or Earliglo, Early Diamond, Johnny's Delight, 
May Jim, or May Kist variety nectarines unless:
* * * * *
    (4) Any package or container of Arctic Glo, Arctic Rose, Arctic 
Star, Diamond Bright, Diamond Jewel, Juneglo, June Pearl, Kay Glo, Kay 
Sweet, May Diamond, May Grand, May Lion, Prima Diamond IV, Prima 
Diamond 13, Prince Jim, Red Delight, Red Glo, Rose Diamond, Royal Glo, 
Sparkling May, Star Brite, White Sun, or Zee Grand variety nectarines 
unless:
* * * * *
    (6) Any package or container of Alshir Red, Alta Red, Arctic Blaze, 
Arctic Gold, Arctic Jay, Arctic Pride, Arctic Queen, Arctic Snow (White 
Jewel), Arctic Sweet, August Glo, August Lion, August Red, August Snow, 
Autumn Delight, Big Jim, Brite Pearl, Cole Red, Crystal Rose, Diamond 
Ray, Early Red Jim, Fairlane, Fantasia, Firebrite, Fire Pearl, Fire 
Sweet, Flame Glo, Flaming Red, Grand Diamond, Grand Pearl, Honey Blaze, 
Honey Kist, July Red, Kay Bright, Kay Diamond, King Jim, Late Red Jim, 
Mid Glo, Niagara Grand, P-R Red, Prima Diamond IX, Prima Diamond XVI, 
Prima Diamond XVIII, Prima Diamond XIX, Prima Diamond XXIV, Red 
Diamond, Red Glen, Red Jim, Regal Pearl, Rio Red, Royal Giant, Ruby 
Diamond, Ruby Pearl, Ruby Sweet, Scarlet Red, 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, Sunburst, Sun Diamond, Sunny Red, Super 
Star, Terra White, White September, or Zee Glo variety nectarines 
unless:
* * * * *

PART 917--FRESH PEARS AND PEACHES GROWN IN CALIFORNIA

    5. Section 917.150 is revised to read as follows:


Sec. 917.150  Lot stamping.

    Except when loaded directly into railway cars, exempted under 
Sec. 917.143, or for peaches mailed directly to consumers in consumer 
packages, all exposed or outside containers of peaches, and not less 
than 75 percent of the total containers on a pallet, shall be plainly 
stamped, prior to shipment, with a Federal-State Inspection Service lot 
stamp number, assigned by such Service, showing that such fruit has 
been USDA inspected in accordance with Sec. 917.45: Provided: That for 
the period April 1 to November 23, 2000, pallets of returnable plastic 
containers shall have the lot stamp numbers affixed to each pallet with 
a USDA-approved pallet tag, in addition to the lot stamp numbers and 
other required information on cards on the individual containers.
    6. Section 917.442 is amended by:

    a. Revising paragraphs (a)(3); and
    b. Revising paragraph (d) to read as follows:


Sec. 917.442  California peach container and pack regulation.

    (a) * * *
    (3) Each package or container of peaches, except for consumer 
packages in master containers and consumer packages mailed directly to 
consumers, shall bear on one outside end clearly and legibly in plain 
sight and in plain letters the words ``U.S. Mature'' or ``US MAT'' if 
such peaches are mature as defined in the United States Standards for 
Grades of Peaches (7 CFR 51.1210 through 51.1223); or may instead bear 
on one outside end clearly and legibly in plain sight and in plain 
letters the words ``California Well Matured'' or ``CA WELL MAT'' if 
such peaches are well matured as defined in Sec. 917.459.
* * * * *
    (d) During the period April 1 through November 23, 2000, each 
container or package when packed with peaches meeting the ``CA 
Utility'' quality requirements, shall bear the words ``CA Utility,'' 
along with all other required container markings, in letters at least 
\3/8\ inch in height on the visible display panel. Consumer bags or 
packages must also be clearly marked on the consumer bags or packages 
as ``CA Utility,'' along with other required markings, in letters at 
least \3/8\ inch in height.
* * * * *
    7. Section 917.459 is amended by:
    a. Revising the introductory text of paragraph (a)(1);
    b. Revising TABLE 1 of paragraph (a)(1)(iv); and
    c. Revising the introductory text of paragraphs (a)(5) and (a)(6) 
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 Further, That peaches of the Peento type shall be 
permitted a 10 percent tolerance for healed, non-serious, blossom-end 
growth cracks: Provided further, That during the period April 1 through 
November 23, 2000, any handler may handle peaches if such peaches meet 
``CA Utility'' quality 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 when more than 30 
percent of the peaches in any container meet or exceed the requirements 
of U.S. No. 1 grade, the additional 10 percent 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:
* * * * *
    (iv) * * *

[[Page 15214]]



                                 Table 1
------------------------------------------------------------------------
             Column A  variety                 Column B  maturity guide
------------------------------------------------------------------------
Amber Crest................................  G
Angelus....................................  I
August Lady................................  L
Autumn Gem.................................  I
Autumn Lady................................  H
Autumn Rose................................  H
Blum's Beauty..............................  G
Cal Red....................................  I
Carnival...................................  I
Cassie.....................................  H
Coronet....................................  E
Crimson Lady...............................  J
Crown Princess.............................  J
David Sun..................................  I
Diamond Princess...........................  J
Earli Rich.................................  H
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
Fire Red...................................  I
First Lady.................................  D
Flamecrest.................................  I
Flavorcrest................................  G
Flavor Queen...............................  H
Flavor Red.................................  G
Franciscan.................................  G
Goldcrest..................................  H
Honey Red..................................  G
John Henry.................................  J
July Elberta...............................  C
June Lady..................................  G
June Pride.................................  J
Kern Sun...................................  H
Kingscrest.................................  H
Kings Lady.................................  I
Kings Red..................................  I
Lacey......................................  I
Lady Sue...................................  L
Late Ito Red...............................  L
May Crest..................................  G
May Sun....................................  I
Merrill Gem................................  G
Merrill Gemfree............................  G
O'Henry....................................  I
Pacifica...................................  G
Prima Gattie 8.............................  L
Queencrest.................................  G
Ray Crest..................................  G
Red Dancer (Red Boy).......................  I
Redhaven...................................  G
Red Lady...................................  G
Redtop.....................................  G
Regina.....................................  G
Rich Lady..................................  J
Rich May...................................  H
Rich Mike..................................  H
Rio Oso Gem................................  I
Royal Lady.................................  J
Royal May..................................  G
Ruby May...................................  H
Ryan Sun...................................  I
September Sun..............................  I
Sierra Crest...............................  H
Sierra Lady................................  I
Sparkle....................................  I
Springcrest................................  G
Spring Lady................................  H
Sugar Lady.................................  J
Summer Lady................................  L
Summerset..................................  I
Suncrest...................................  G
Sweet Scarlet..............................  J
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.

* * * * *
    (5) Any package or container of Babcock, Brittany Lane, Crimson 
Lady, Crown Princess, David Sun, Early May Crest, Flavorcrest, June 
Lady, Kern Sun, May Crest, May Sun, Merrill Gemfree, Pink Rose, Prima 
Peach IV, Queencrest, Ray Crest, Redtop, Rich May, Rich Mike, Snow 
Brite, Snow Prince, Springcrest, Spring Lady, Spring Snow, Sugar May, 
Sweet Scarlet, White Dream, Zee Diamond, 012-094, or 172LE White Peach 
(Crimson Snow/Sunny Snow) variety of peaches unless:
* * * * *
    (6) Any package or container of Amber Crest, August Lady, Autumn 
Flame, Autumn Lady, Autumn Rose, Cal Red, Carnival, Cassie, Champagne, 
Country Sweet, Diamond Princess, Earli Rich, Early Elegant Lady, Early 
O'Henry, Elegant Lady, Fairtime, Fancy Lady, Fay Elberta, Flamecrest, 
Full Moon, John Henry, June Pride, Kaweah, Kings Lady, Lacey, Late Ito 
Red, Late September Snow, Madonna Sun, Morning Lord, N117, O'Henry, 
Prima Gattie, Prima Peach 13, Prima Peach 20, Prima Peach 23, Queen 
Lady, Red Dancer, Red Sun, Rich Lady, Royal Lady, Ryan Sun, Saturn 
(Donut), Scarlet Snow, September Snow, September Sun, Sierra Gem, 
Sierra Lady, Snow Blaze, Snow Giant, Snow King, Sprague Last Chance, 
Sugar Giant, Sugar Lady, Summer Lady, Summer Sweet, Summer Zee, 
Suncrest, Sweet Kay, Sweet September, Tra Zee, Vista, White Lady, Yukon 
King, or Zee Lady variety of peaches unless:
* * * * *

    Dated: March 16, 2000.
Robert C. Keeney,
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 00-7086 Filed 3-21-00; 8:45 am]
BILLING CODE 3410-02-P