[Federal Register Volume 68, Number 68 (Wednesday, April 9, 2003)]
[Rules and Regulations]
[Pages 17257-17267]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-8650]



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 Rules and Regulations
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  Federal Register / Vol. 68, No. 68 / Wednesday, April 9, 2003 / Rules 
and Regulations  

[[Page 17257]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 916 and 917

[Docket No. FV03-916-2 IFR]


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

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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

SUMMARY: This rule revises the handling requirements for California 
nectarines and peaches by modifying the grade, size, maturity, and 
container requirements for fresh shipments of these fruits, beginning 
with 2003 season shipments. This rule also continues a modification of 
the requirements for placement of Federal-State Inspection Service lot 
stamps for the 2003 season, establishes a net weight for a style of 
containers and exempts those containers from the well-filled 
requirement, and revises the weight-count standards for Peento type 
peaches. 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 would enable handlers to continue shipping fresh nectarines 
and peaches meeting consumer needs in the interests of producers, 
handlers, and consumers of these fruits.

DATES: Effective April 10, 2003. Comments received by June 9, 2003, 
will be considered prior to issuance of any final rule.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this rule. Comments must be sent to the Docket Clerk, Fruit 
and Vegetable Programs, AMS, USDA, 1400 Independence Avenue, SW., STOP 
0237, Washington, DC 20250-0237; Fax: (202) 720-8938, 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, or can be viewed at: 
http://www.ams.usda.gov/fv/moab.html.

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 (559) 487-5901, Fax: 
(559) 487-5906; or George Kelhart, Technical Advisor, Marketing Order 
Administration Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 
Independence Avenue, SW., STOP 0237, Washington, DC 20250-0237; 
telephone: (202) 720-2491; Fax: (202) 720-8938.
    Small businesses may request information on complying with this 
regulation by contacting Jay Guerber, Marketing Order Administration 
Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 Independence 
Avenue, SW., STOP 0237, Washington, DC 20250-0237; telephone: (202) 
720-2491, Fax: (202) 720-8938, or e-mail: [email protected].

SUPPLEMENTARY INFORMATION: This 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 (USDA) 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 USDA 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, USDA 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 USDA'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, 
container marking, 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 December 3, 2002, and 
unanimously recommended that these handling requirements be revised for 
the 2003 season, which begins about the first or second week of April. 
The changes: (1) Continue the lot stamping requirements which have been 
in effect since the 2000 season; (2) authorize shipments of ``CA 
Utility'' quality fruit to continue during the 2003 season; (3) revise 
weight-count standards for the Peento type peaches; (4) establish a net 
weight for all five-down containers and exempt those containers from 
the well-filled requirement; and (5) revise varietal maturity, quality, 
and size requirements to reflect changes in growing and marketing 
practices.
    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 are encouraged to express their views 
at these meetings. The committees held

[[Page 17258]]

such meetings on December 3, 2002. USDA 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 2003 crop will be similar in size and characteristics to the 2002 
crop, which totaled 23,230,000 containers of nectarines and 22,124,000 
containers 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 before shipment to show that the fruit has been 
inspected. These requirements apply except for containers that are 
loaded directly onto railway cars, 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 inspector's corresponding 
working papers or field 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 to by the inspector at the time of 
the inspection.
    The lot stamp number has value for the industries, as well. The 
committees utilize the lot stamp number and date codes to trace fruit 
in the container back to the orchard from which it was 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.
    Over the last few years, several new containers have been 
introduced for use by nectarine and peach handlers. These containers 
are returnable plastic containers (RPCs). Use of RPCs may represent 
substantial savings to retailers for storage and disposal, as well as 
for handlers who do not have to pay for traditional, single-use, 
containers. Fruit is packed in the containers by the handler, delivered 
to the retailer, emptied, and returned to a central clearinghouse for 
cleaning and redistribution to the handler. However, because these 
containers are designed for reuse, RPCs do not support markings that 
are permanently affixed to the container. All markings must be printed 
on cards that slip into tabs on the front or sides of the containers. 
The cards are easily inserted and removed, and further contribute to 
the efficient reuse of RPCs.
    The cards are a continuing concern for the inspection service and 
the industries 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 since the 2000 season, the committees have 
annually recommended that pallets of inspected fruit in RPCs 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, noted the committees, an audit trail would be 
created, confirming that the lot stamp number on each container on the 
pallet corresponds to the lot stamp number on the pallet tag.
    The committees and the inspection service presented their concerns 
to the manufacturers of these types of containers prior to the 2000 
season. At that time, one manufacturer indicated a willingness to 
address the problem by offering an area on the principal display panel 
where the container markings would adhere to the container. Another 
possible improvement discussed was for an adhesive for the current 
style of containers which would securely hold the cards with the lot 
stamp numbers, yet would be easy for the clearinghouse to remove when 
the containers are washed. However, the changes offered by the 
manufacturers were not available for use in the previous three seasons, 
and there is no assurance that they will be available for the 2003 
season.
    In a meeting of the Stone Fruit Grade and Size Subcommittee on 
November 6, 2002, it was determined that given the different styles and 
configurations of RPCs available, having a standardized display panel 
or a satisfactory adhesive for placement of the cards may not be 
realistic and the industry needed to continue the lot stamping 
requirements in place since the 2000 season.
    For those reasons, the subcommittee unanimously recommended to the 
committees that the regulation in effect since the 2000 season 
requiring lot stamp numbers on USDA-approved pallet tags, as well as on 
individual containers on a pallet, be again required for the 2003 
season. The committees, in turn, recommended unanimously that such 
requirement be extended for the 2003 season, as well.
    Thus, Sec. Sec.  916.115 and 917.150 will be amended to require the 
lot stamp number to be printed on a USDA-approved pallet tag, in 
addition to the requirement that the lot stamp number be applied to 
cards on all exposed or outside containers, and not less than 75 
percent of the total containers on a pallet, during the 2003 season.

Container and Pack Requirements

    Sections 916.52 and 917.41 of the orders authorize establishment of 
container, pack, and marking requirements for shipments of nectarines 
and peaches, respectively. Under Sec. Sec.  916.350 and 917.442 of the 
orders, the specifications of container markings, net weights, well-
filled requirements, weight-count standards for various sizes of 
nectarines and peaches, and lists of standard containers are provided.
    The committees unanimously recommended that a uniform net weight be 
established for all ``five down'' boxes (commonly referred to as 
``Euro'' boxes), and that all such containers be exempted from the 
well-filled requirement. Currently, the net weight requirement of 31 
pounds for ``five down'' boxes and the exemption from the well-filled 
requirement applies only to RPCs. However, as a handler noted at one 
meeting, the industry uses boxes of the same ``footprint'' (length and 
width dimensions) as the RPCs that are made of more traditional 
materials, such as corrugated cardboard. ``Five down'' boxes are 
containers that lay in a pattern of five containers per layer on each 
pallet. In other words, each layer of boxes on a pallet contains only 
five Euro boxes. Other container sizes and footprints may result in 
nine boxes per layer, etc.
    Since applying the well-filled requirements to any five down Euro 
box

[[Page 17259]]

might result in bruising or other damage to fruit packed in it, the 
Stone Fruit Grade and Size Subcommittee voted unanimously to extend the 
current requirements applicable to RPCs with regard to net weight and 
well-filled requirements to all five down Euro containers. This would 
ensure that all five down Euro containers have a uniform net weight and 
ensure that the fruit in those containers is handled in such a way to 
minimize damage.
    At the December 3, 2002, meeting, the NAC and PCC also unanimously 
recommended that all five down Euro boxes have an established net 
weight of 31 pounds, which is to be printed on the end of the 
container, and that those containers, like the RPCS, be exempt from the 
well-filled requirement.
    Nectarines: For the reasons stated above, paragraphs (a)(1) and 
(a)(8) of Sec.  916.350 are revised to refer to all five down Euro 
containers. Such changes will ensure that all five down Euro containers 
of nectarines are a net weight of 31 pounds and are exempt from the 
well-filled requirement. The container markings shall be placed on one 
outside end of the container in plain sight and in plain letters.
    Peaches: For the reasons stated above, paragraphs (a)(1) and (a)(9) 
of Sec.  917.442 are revised to refer to all five down Euro containers. 
Such changes will ensure that all five down Euro containers of peaches 
are a net weight of 31 pounds and are exempt from the well-filled 
requirement. The markings shall be placed on one outside end of the 
container in plain sight and in plain letters.

Weight-Count Standards for Peaches

    Under the requirements of Sec.  917.41 of the order, containers of 
peaches are required to meet weight-count standards for a maximum 
number of peaches in a 16-pound sample when such peaches, which may be 
packed in tray-packed containers, are converted to volume-filled 
containers. Under Sec.  917.442 of the order's rules and regulations, 
weight-count standards are established for all varieties of peaches as 
Tables 1, 2, and 3 of paragraph (a)(5)(iv).
    According to the PCC, the Peento type peaches have traditionally 
been packed in trays because they have been marketed as a premium 
variety, which justified the added packing costs.
    However, as the volume has increased, the value of this peach has 
diminished in the marketplace, and some handlers converted their tray-
packed containers of Peento types to volume-filled containers. Prior to 
the 2002 season, weight-count standards established for peaches and 
nectarines were developed for round fruit. Peento type peaches are 
shaped like donuts, and those weight-count standards were 
inappropriate. In an effort to standardize the conversion from tray-
packing to volume-filling for Peento type peaches, the committee staff 
conducted weigh-count surveys during the 2001 season to determine the 
most optimum weight-counts for the varieties at varying fruit sizes.
    As a result, a new weight-count table applicable to only the Peento 
type peaches was added for the 2002 season. However, during the 2002 
season, the committee staff continued to conduct further weight-count 
surveys to ensure that the Peento type peaches packed in volume-filled 
containers meet the weight-count standards established for tray-packed 
fruit. During those studies, the committee staff learned that very 
large Peento type peaches that were not previously converted from tray-
packs to volume-filled containers were being packed in volume-filled 
containers and did not meet the weight-count standards.
    For this reason, Table 3 of paragraph (a)(5)(iv) in Sec.  917.442 
is being revised to include weight-count standards for two of the 
larger peach sizes, sizes 32 and 30. Table 3 will also be corrected 
with regard to the maximum number of fruit in a 16-pound sample for 
sizes 54 and 50. Also, the maximum number of fruit in a 16-pound sample 
of size 54 Peento type peaches currently is listed as 77 peaches, and 
the maximum number of size 50 Peento type peaches is listed as 80 
peaches. The maximum numbers of fruit for these sizes were 
inadvertently reversed, and will be corrected to indicate that the 
maximum number of fruit in a 16-pound sample of size 54 Peento type 
peaches is 80, and the maximum number of fruit in a 16-pound sample of 
size 50 Peento type peaches is 77.

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 
for 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. Sec.  916.350, 916.356, 917.442, and 917.459 
to permit shipments of nectarines and peaches meeting ``CA Utility'' 
quality requirements during the 2003 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 have been permitted each season since 
1996.
    Studies conducted by the NAC and PCC in 1996 indicated 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 represented 1.1 percent 
of all nectarine shipments, or approximately 210,000 containers. 
Shipments of ``CA Utility'' nectarines reached a high of 5.3 percent 
(1,239,000 containers) during the 2002 season, but usually represent 
approximately 4 percent of total nectarine shipments. Shipments of ``CA 
Utility'' peaches totaled 1.9 percent of all peach shipments, or 
approximately 366,000 containers, during the 1996 season. Shipments of 
``CA Utility'' peaches reached a high of 5.6 percent of all peach 
shipments (1,231,000 containers) during the 2002 season, but usually 
represent approximately 4 percent of total peach shipments.
    Handlers have also commented that the availability of the ``CA 
Utility'' quality option lends flexibility to their packing operations. 
They have noted that they now have the opportunity to remove marginal 
nectarines and peaches from their U.S. No. 1 containers and place this 
fruit in containers of ``CA Utility.'' This flexibility, the handlers 
note, results in better quality U.S. No. 1 packs without sacrificing 
fruit.
    The Stone Fruit Grade and Size Subcommittee met on November 6, 
2002, and did not make a recommendation to the NAC and PCC to continue 
shipments of ``CA Utility'' quality nectarines and peaches. Some 
subcommittee members raised concerns about ``CA Utility'' quality 
fruit, including concerns that growers'' returns on ``CA Utility'' 
quality fruit are lower. The issue of the authorized tolerance of 40 
percent U.S. No. 1 fruit in each container of ``CA Utility'' quality 
was raised, and there was some discussion that the tolerance should be 
reduced so that less U.S. No. 1 fruit would be in a box of ``CA 
Utility'' quality fruit. However, ultimately no decisions were made by 
the subcommittee as the result of these discussions.
    Subsequently, however, the NAC and PCC voted unanimously at their

[[Page 17260]]

December 3, 2002, meetings to authorize continued shipments of ``CA 
Utility'' quality fruit during the 2003 season.
    Accordingly, based upon the recommendations, paragraph (d) of 
Sec. Sec.  916.350 and 917.442, and paragraph (a)(1) of Sec. Sec.  
916.356 and 917.459 are revised to permit shipments of nectarines and 
peaches meeting ``CA Utility'' quality requirements during the 2003 
season, on the same basis as shipments since the 2000 season.

Maturity Requirements

    In Sec. Sec.  916.52 and 917.41, authority is provided 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. For most varieties, ``well-
matured'' determinations for nectarines and peaches 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 upon the most-recent information 
available on the individual characteristics of each nectarine and peach 
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 Sec. Sec.  916.356 and 
917.459, for nectarines and peaches, respectively.
    The requirements in the 2003 handling regulations are the same as 
those that appeared in the 2002 handling regulations 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. This 
rule revises Table 1 of paragraph (a)(1)(iv) of Sec.  916.356 to add 
maturity guides for four varieties of nectarines. Specifically, SPI 
recommended adding maturity guides for the Mango variety to be 
regulated at the B maturity guide, for the Honey Royale and the Sunny 
Red varieties at the J maturity guide, and the Prince Jim variety to be 
regulated at the L maturity guide.
    The NAC recommended these maturity guide requirements based on 
SPI's continuing review of individual maturity characteristics and 
identification of the appropriate maturity guide corresponding to the 
``well-matured'' level of maturity for nectarine varieties in 
production.
    Peaches: Requirements for ``well-matured'' peaches are specified in 
Sec.  917.459 of the order's rules and regulations. This rule revises 
Table 1 of paragraph (a)(1)(iv) of Sec.  917.459 to add maturity guides 
for six peach varieties. Specifically, SPI recommended adding maturity 
guides for the September Flame variety to be regulated at the I 
maturity guide; Autumn Red, Magenta Queen, Pretty Lady, and the Prima 
Gattie 10 varieties to be regulated at the J maturity guide; and the 
Golden Princess variety to be regulated at the L maturity guide.
    In addition, SPI requested that the language in paragraph 
(a)(1)(vi) of Sec.  917.459 be revised with regard to the Joanna Sweet 
variety. Currently, the Joanna Sweet variety is required to have a one 
hundred percent surface color requirement for meeting the assigned 
color chip. SPI requested that the language be changed to reflect that 
any of the fruit surface that is not red shall meet the color guide 
established for the variety, including any color found in the stem 
cavity. This recommendation is based upon SPI's experience with the 
maturity characteristics of this variety.
    Thus, paragraph (a)(1)(iv) of Sec.  917.459 will be revised to 
reflect this recommendation.
    The PCC recommended these maturity guide 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.
    Size Requirements: Both orders provide (in Sec. Sec.  916.52 and 
917.41) authority to establish size requirements. Size regulations 
encourage producers to leave fruit on the tree longer, which improves 
both size and maturity of the fruit. Acceptable fruit size provides 
greater consumer satisfaction and promotes repeat purchases; and, 
therefore, increases returns to producers and handlers. In addition, 
increased fruit size results in increased numbers of packed containers 
of nectarines and peaches per acre, also a benefit to producers and 
handlers.
    Varieties recommended for specific size regulations 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 attained by the regulated varieties and 
those varieties with the potential to become regulated, and determine 
whether revisions and additions to 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 four varieties of 
nectarines that were produced in commercially-significant quantities of 
more than 10,000 containers for the first time during the 2002 season. 
This rule also removes the variety-specific minimum size requirements 
for 11 varieties of nectarines whose shipments fell below 5,000 
containers during the 2002 season.
    For example, one of the varieties recommended for addition to the 
variety-specific minimum size requirements is the Red Roy variety of 
nectarines, recommended for regulation at a minimum size 88. Studies of 
the size ranges attained by the Red Roy variety revealed that 100 
percent of the containers met the minimum size of 88 during the 2002 
season. Sizes ranged from size 40 to size 88, with 1.5 percent of the 
fruit in the 40 sizes, 22.2 percent of the packages in the 50 sizes, 
55.8 percent in the 60 sizes, 14.6 percent in the 70 sizes, 5.4 in the 
80 sizes, with .5 percent in the size 88.
    A review of other varieties with the same harvesting period 
indicated that the Red Roy variety was also comparable to those 
varieties in its size ranges for that time period. Discussions with 
handlers known to handle the variety confirm this information regarding 
minimum size and harvesting period, as well. Thus, the recommendation 
to place the Red Roy variety in the variety-specific minimum size 
regulation at a minimum size 88 is appropriate. This recommendation 
results from size studies conducted over a two-year period.
    Historical 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 the staff 
receives such comments, either in writing or verbally.
    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 Red Roy variety; and the introductory text of paragraph 
(a)(6) of Sec.  916.356 is revised to include the Candy Gold, Candy 
Sweet, and Honey Royale nectarine varieties.
    This rule also revises the introductory text of paragraphs (a)(3), 
(a)(4), and (a)(6) of Sec.  916.356 to remove 11 varieties from the 
variety-specific minimum size

[[Page 17261]]

requirements specified in these paragraphs because less than 5,000 
containers of each of these varieties were produced during the 2002 
season. Specifically, the introductory text of paragraph (a)(3) of 
Sec.  916.356 is revised to remove the Johnny's Delight and May Jim 
nectarine varieties; the introductory text of paragraph (a)(4) of Sec.  
916.356 is revised to remove the Scarlet Jewels and Star Brite 
nectarine variety; and the introductory text of paragraph (a)(6) of 
Sec.  916.356 is revised to remove the Arctic Gold, Kay Diamond, Prima 
Diamond XVI, Spring Diamond, Spring Red, Summer Beaut, and Sunecteight 
(Super Star) nectarine varieties.
    Nectarine varieties removed from the nectarine variety-specific 
minimum size requirements become subject to the non-listed variety size 
requirements specified in paragraphs (a)(7), (a)(8), and (a)(9) of 
Sec.  916.356.
    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 12 peach varieties that were produced in commercially-significant 
quantities of more than 10,000 containers for the first time during the 
2002 season. This rule also removes the variety-specific minimum size 
requirements for 10 varieties of peaches whose shipments fell below 
5,000 containers during the 2002 season.
    For example, one of the varieties recommended for addition to the 
variety-specific minimum size requirements is the Springtreat (60EF32) 
variety of peaches, which was recommended for regulation at a minimum 
size 80. Studies of the size ranges attained by the Springtreat 
(60EF32) variety revealed that 100 percent of the containers met the 
minimum size of 80 during the 2002 season. The sizes ranged from size 
50 to size 80, with 8.2 percent of the containers meeting the size 50, 
41.2 meeting the size 60, 37.6 percent meeting the size 70, and 12.9 
percent meeting the size 80.
    A review of other varieties with the same harvesting period 
indicated that the Springtreat (60EF32) variety was also comparable to 
those varieties in its size ranges for that time period. Discussions 
with handlers known to pack the variety confirm this information 
regarding minimum size and harvesting period, as well. Thus, the 
recommendation to place the Springtreat (60EF32) variety in the 
variety-specific minimum size regulation at a minimum size 80 is 
appropriate. This recommendation, as with all other size 
recommendations for peaches, results from size studies conducted over a 
three-year period.
    Historical 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 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 PCC and subcommittee meetings when the staff 
receives such comments, either in writing or verbally.
    For reasons similar to those discussed in the preceding paragraph, 
the introductory text of paragraph (a)(5) of Sec.  917.459 is revised 
to include the Happy Dream, Magenta Queen, Springtreat (60EF32), and 
Spring Flame 21 peach varieties; and the introductory text of paragraph 
(a)(6) of Sec.  917.459 is revised to include the August Flame, Henry 
II, June Flame, Pink Giant, Prima Peach XV, Red Giant, Snow Beauty, and 
Snow Princess peach varieties.
    This rule also revises the introductory text of paragraph (a)(3) of 
Sec.  917.459 to remove the Topcrest peach variety; revises the 
introductory text of paragraph (a)(5) of Sec.  917.459 to remove the 
White Dream peach variety; and revises the introductory paragraph 
(a)(6) of Sec.  917.459 to remove the Cal Red, Champagne, Flaming 
Dragon, Garnet Jewel, Lacey, Madonna Sun, Morning Lord, and Red Sun 
peach varieties from the variety-specific minimum size requirements 
specified in the section because less than 5,000 containers of each of 
these varieties was produced during the 2002 season.
    Peach varieties removed from the peach variety-specific minimum 
size requirements become subject to the non-listed variety size 
requirements specified in paragraphs (b) and (c) of Sec.  917.459.
    The NAC and PCC recommended these changes in the minimum size 
requirements based on a continuing review of the sizing and maturity 
relationships for these nectarine and peach varieties, and the consumer 
acceptance levels for various fruit sizes. This rule is designed to 
establish minimum size requirements for fresh nectarines and peaches 
consistent with expected crop and market conditions.
    This rule reflects the committees' and USDA's appraisal of the need 
to revise the handling requirements for California nectarines and 
peaches, as specified. USDA believes that this rule will have a 
beneficial impact on producers, handlers, and consumers of fresh 
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 to provide fruit desired by consumers. 
This rule is designed to establish and maintain orderly marketing 
conditions for these fruit in the interests of producers, handlers, and 
consumers.

Initial Regulatory Flexibility Analysis

    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 include handlers, 
are defined by the Small Business Administration (13 CFR 121.201) as 
those whose annual receipts are less than $5,000,000. Small 
agricultural producers are defined by the Small Business Administration 
as those having annual receipts of less than $750,000. A majority of 
these handlers and producers may be classified as small entities.
    The committees' staff has estimated that there are less than 20 
handlers in the industry who could be defined as other than small 
entities. For the 2002 season, the committees' staff estimated that the 
average handler price received was $9.00 per container or container 
equivalent of nectarines or peaches. A handler would have to ship at 
least 556,000 containers to have annual receipts of $5,000,000. Given 
data on shipments maintained by the committees' staff and the average 
handler price received during the 2002

[[Page 17262]]

season, the committees' staff estimates that small handlers represent 
approximately 94 percent of all the handlers within the industry.
    The committees' staff has also estimated that less than 20 percent 
of the producers in the industry could be defined as other than small 
entities. For the 2002 season, the committees' estimated the average 
producer price received was $4.00 per container or container equivalent 
for nectarines and peaches. A producer would have to produce at least 
187,500 containers of nectarines and peaches to have annual receipts of 
$750,000. Given data maintained by the committees' staff and the 
average producer price received during the 2002 season, the committees' 
staff estimates that small producers represent more than 80 percent of 
the producers within the industry. With an average producer price of 
$4.00 per container or container equivalent, and a combined packout of 
nectarines and peaches of 45,354,000 containers, the value of the 2002 
packout level is estimated to be $181,416,000. Dividing this total 
estimated grower revenue figure by the estimated number of producers 
(1,800) yields an estimate of average revenue per producer of about 
$101,000 from the sales of peaches and nectarines.
    Under Sec. Sec.  916.52 and 917.41 of the orders, grade, size, 
maturity, container, container marking, and pack requirements are 
established for fresh shipments of California nectarines and peaches, 
respectively. Such requirements are in effect on a continuing basis. 
The NAC and PCC met on December 3, 2002, and unanimously recommended 
that these handling requirements be revised for the 2003 season. These 
recommendations had been presented to the committees by various 
subcommittees, each charged with review and discussion of the changes. 
The changes: (1) Continue the lot stamping requirements for reusable 
plastic containers that have been in effect since the 2000 season; (2) 
authorize shipments of ``CA Utility'' quality fruit to continue during 
the 2003 season; (3) revise weight-count standards for the Peento type 
peaches; (4) establish a net weight for all five-down containers and 
exempt those containers from the well-filled requirement; and (5) 
revise varietal maturity, quality, and size requirements to reflect 
changes in growing and marketing practices.
    This rule authorizes continuation of the lot stamping requirements 
for returnable plastic containers under the marketing orders' rules and 
regulations that have been in effect for such containers since the 2000 
season for nectarine and peach shipments. The modified requirements of 
Sec. Sec.  916.115 and 917.150 mandated that the lot stamp numbers be 
printed on a USDA-approved pallet tag, in addition to the requirement 
that the lot stamp number be applied to cards on all exposed or outside 
containers, and not less than 75 percent of the total containers on a 
pallet. Continuation of such requirements for the 2003 season would 
help the inspection service safeguard the identity of inspected and 
certified containers of nectarines and peaches, and would help the 
industry by keeping in place the information necessary to facilitate 
their ``trace-back'' program.
    The Stone Fruit Grade and Size Subcommittee met on November 6, 
2002, and considered possible alternatives to this action. Other 
alternatives were rejected because it was determined that given the 
different styles and configurations of RPCs available, having a 
satisfactory adhesive for placement of the cards may not be realistic, 
at least for the time being, given the reluctance of box manufacturers 
to respond to the industry's requests.
    For those reasons, the subcommittee and the committees unanimously 
recommended extending the requirement for the lot stamp number to be 
printed on the cards on each container and for each pallet to be marked 
with a USDA-approved pallet tag, also containing the lot stamp number. 
Such safeguards are intended to ensure that all the containers on each 
pallet have been inspected and certified in the event a card on an 
individual container or containers is removed, misplaced, or lost.
    The Stone Fruit Grade and Size Subcommittee also discussed the 31-
pound net weight requirement for all five down Euro containers at its 
meeting on November 6, 2002. At that time, it was noted by one handler 
that the current net weight of 31 pounds and exemption from the well-
filled requirement are applicable to only the RPCs. The handler noted, 
however, that the industry also currently uses five down Euro boxes 
that are not RPCs. He further suggested that all five down Euro boxes 
should be required to meet the net weight of 31 pounds and be exempted 
from the requirement to be well-filled. The subcommittee agreed and 
unanimously recommended the change to the committees. The alternative 
would have meant that only the RPC five down Euro containers would have 
been subject to the minimum regulated with a net weight of 31 pounds, 
and exempted from the requirement to be well-filled. In consideration 
of uniformity for five down Euro containers, this alternative was 
rejected.
    In 1996, Sec. Sec.  916.350 and 917.442 were revised to permit 
shipments of ``CA Utility'' quality nectarines and peaches as an 
experiment during the 1996 season only. Such shipments have 
subsequently been permitted each season. Since 1996, shipments of ``CA 
Utility'' have ranged from 1 to 5 percent of total nectarine and peach 
shipments. This rule authorizes continued shipments of ``CA Utility'' 
quality nectarines and peaches during the 2003 season.
    The Grade and Size Subcommittee met on November 6, 2002, and 
briefly discussed ``CA Utility'' quality nectarines and peaches. The 
subcommittee ultimately did not make a recommendation to the NAC and 
PCC regarding continued shipments of ``CA Utility'' quality nectarines 
and peaches. The subcommittee did, however, request that the results of 
a grower survey on attitudes toward ``CA Utility'' quality fruit 
conducted in December of 2001 by the committees be provided to the 
committees at the December 3, 2002, meeting.
    However, at their meetings on December 3, 2002, the NAC and PCC 
unanimously recommended to continue to allow shipments of ``CA 
Utility'' quality nectarines and peaches.
    Sections 916.350 and 917.442 establish container, pack, and marking 
requirements for shipments of nectarines and peaches, respectively. 
This rule makes changes to the pack and container marking requirements 
of the orders' rules and regulations to establish a net weight of 31 
pounds for all types of five down Euro boxes, and exempt such boxes 
from the well-filled requirement.
    Section 917.442 also establishes minimum weight-count standards for 
containers of peaches. Under these requirements, containers of peaches 
are required to meet weight-count standards for a maximum number of 
peaches in a 16-pound sample when such peaches are packed in a tray-
packed container. Those same maximum numbers of peaches are also 
applicable to volume-filled containers, based upon the tray-packed 
standard. The weight-count standard was developed so handlers may 
convert tray-packed peaches to volume-filled containers and be assured 
that fruit of a specific size in the volume-filled container will be 
the same as that in the tray-packed container.
    When the Stone Fruit Grade and Size Subcommittee met, they 
discussed the recent changes in the packing and

[[Page 17263]]

marketing of Peento type peaches. When these varieties were first 
introduced and marketed, they were generally tray-packed because they 
were a novel and premium product. As production has increased, the 
value of the varieties has diminished in the marketplace, and some 
handlers have converted their tray-packed containers of Peento type 
peaches to volume-filled containers. Weight-count standards provide a 
basis for volume filling containers of other varieties of peaches. 
Currently, Peento type peaches are regulated under a new table of 
weight-count standards applicable to only these uniquely-shaped 
peaches.
    The staff continued to conduct weight-count studies during the 2002 
season so that weight-count standards could be perfected, thus ensuring 
that all handlers are handling a standard maximum number of peaches in 
a 16-pound sample. During the studies, the staff learned that all 
available sizes of Peento type peaches were being packed in volume-
filled containers, including sizes for which there were not yet minimum 
weight-count standards. For that reason, modifications to Table 3 in 
paragraph (a)(5)(vi) of Sec.  917.442 are made to include additional 
sizes 30 and 32, which are larger-sized Peento peaches.
    Sections 916.356 and 917.459 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 recommended by Shipping Point Inspection. Such 
maturity guides are reviewed annually by SPI to determine the 
appropriate guide for each nectarine and peach variety. These annual 
adjustments reflect refinements in measurements of the maturity 
characteristics of nectarines and peaches as experienced over previous 
seasons' inspections. Adjustments in the guides utilized ensure that 
fruit has met an acceptable level of maturity, ensuring consumer 
satisfaction while benefiting nectarine and peach producers and 
handlers.
    Currently, in Sec.  916.356 of the nectarine order's rule and 
regulations, and in Sec.  917.459 of the peach order's rule and 
regulations, minimum sizes for various varieties of nectarines and 
peaches, respectively, are established. This rule makes adjustments to 
the minimum sizes authorized for various varieties of nectarines and 
peaches for the 2003 season. Minimum size regulations are put in place 
to encourage producers to leave fruit on the trees for a longer period 
of time. This increased growing time not only improves maturity, but 
also increases fruit size. Increased fruit size increases the number of 
packed containers per acre, and coupled with heightened maturity 
levels, also provides greater consumer satisfaction, fostering repeat 
purchases. Such improved consumer satisfaction and repeat purchases 
benefit both producers and handlers alike.
    Annual adjustments to minimum sizes of nectarines and peaches, such 
as these, are recommended by the NAC and PCC based upon historical 
data, producer and handler information regarding sizes attained by 
different varieties, and trends in consumer purchases.
    An alternative to such action would include not establishing 
minimum size regulations for these new varieties. Such an action, 
however, would be a significant departure from the committees' 
practices and represent a significant change in the regulations as they 
currently exist; would ultimately increase the amount of less 
acceptable fruit being marketed to consumers; and, thus, would be 
contrary to the long-term interests of producers, handlers, and 
consumers. For these reasons, this alternative was not recommended.
    The committees make recommendations regarding all the revisions in 
handling and lot stamping requirements after considering all available 
information, including recommendations by various subcommittees, 
comments of persons at subcommittee meetings, and comments received by 
committee staff. Such subcommittees include the Stone Fruit Grade and 
Size Subcommittee, the Inspection and Compliance Subcommittee, and the 
Executive Committee.
    At the meetings, the impact of and alternatives to these 
recommendations are deliberated. These subcommittees, like the 
committees themselves, frequently consist of individual producers and 
handlers with many years' of experience in the industry who are 
familiar with industry practices and trends. Like all committee 
meetings, subcommittee meetings are open to the public and comments are 
widely solicited. In the case of the Stone Fruit Grade and Size 
Subcommittee, many growers and handlers who are affected by the issues 
discussed by the subcommittee attend and actively participate in the 
public deliberations. In addition, minutes of all subcommittee meetings 
are distributed to committee members and others who have requested 
them, thereby increasing the availability of information within the 
industry.
    Each of the recommended handling requirement changes for the 2003 
season is expected to generate financial benefits for produces and 
handlers through increased fruit sales, compared to the situation that 
would exist if the changes were not adopted. Both large and small 
entities are expected to benefit from the changes, and the costs of 
compliance are not expected to be substantially different between large 
and small entities.
    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.
    USDA 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 CFR 1621 et seq.). Standards issued under the 
Agricultural Marketing Act of 1946 are otherwise voluntary.
    In addition, the committees' meetings are widely publicized 
throughout the nectarine and peach industry and all interested parties 
are encouraged to attend 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 
December 3, 2002, meetings were public meetings, and all entities, 
large and small, were encouraged to express views on these issues. 
These regulations were also reviewed and thoroughly discussed at a 
subcommittee meeting held on November 6, 2002. 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 Web site: 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.
    This rule invites comments on changes to the handling requirements 
currently prescribed under the marketing orders for California fresh 
nectarines and peaches. Any comments

[[Page 17264]]

received will be considered prior to finalization of this rule.
    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.
    Pursuant to 5 U.S.C. 553, it is also found and determined, upon 
good cause, that it is impracticable, unnecessary, and contrary to the 
public interest to give preliminary notice prior to putting this rule 
into effect, and that good cause exists for not postponing the 
effective date of this rule until 30 days after publication in the 
Federal Register because: (1) California nectarine and peach producers 
and handlers should be apprised of this rule as soon as possible, since 
shipments of these fruits are expected to begin in early April; (2) 
this rule relaxes grade requirements for nectarines and peaches; (3) 
the committees unanimously recommended these changes at public meetings 
and interested persons had opportunities to provide input at these 
meetings; and (4) the rule provides a 60-day comment period, and any 
written comments timely 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.


0
For the reasons set forth in the preamble, 7 CFR parts 916 and 917 are 
amended as follows:
0
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

0
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, 2003, 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.
0
3. Section 916.350 is amended by:
0
A. Revising paragraph (a)(1);
0
B. Revising paragraph (a)(8); and
0
C. Revising paragraph (d) to read as follows:


Sec.  916.350  California nectarine container and pack regulation.

    (a) * * *
    (1) Such nectarines, when packed in any closed package or 
container, except master containers of consumer packages, individual 
consumer packages, and five down Euro containers, shall conform to the 
requirements of standard pack: Provided, That nectarines in any such 
volume-filled container need only be filled to within one-inch of the 
top of the container.
* * * * *
    (8) Each five down Euro container of loose-filled nectarines shall 
bear on one outside end in plain sight and in plain letters the words 
``31 pounds net weight.''
* * * * *
    (d) During the period April 1 through October 31, 2003, 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 all other required markings, in letters 
at least 3/8 inch in height.

0
4. Section 916.356 is amended by:
0
A. Revising paragraph (a)(1) introductory text;
0
B. Revising Table 1; and
0
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, 2003, 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 the 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 Bright.............................  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
Fire Sweet.................................  J
Flame Glo..................................  L
Flamekist..................................  L
Flaming Red................................  K
Flavortop..................................  J
Grand Diamond..............................  L
Gran Sun...................................  L
Honey Blaze................................  J
Honey Kist.................................  I

[[Page 17265]]

 
Honey Royale...............................  J
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
Mango......................................  B
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
Niagra Grand...............................  H
P-R Red....................................  L
Prince Jim.................................  L
Prima Diamond XIII.........................  L
Red Delight................................  I
Red Diamond................................  L
Red Fred...................................  J
Red Free...................................  L
Red Glen...................................  J
Red Glo....................................  I
Red Grand..................................  H
Red Jewel..................................  L
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
Ruby Sweet.................................  J
Scarlet Red................................  K
September Free.............................  J
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 Ray.................................  L
Spring Sweet...............................  J
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
Sunecteight (Super Star)...................  G
Sun Grand..................................  G
Sunny Red..................................  J
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 Crimson Baby, Earliglo, Early Diamond, 
Grand Sun, or May Kist variety nectarines unless:
* * * * *
    (4) Any package or container of Arctic Rose, Arctic Star, Diamond 
Bright, Juneglo, June Pearl, Kay Glo, Kay Sweet, May Diamond, May 
Grand, Prima Diamond IV, Prima Diamond VI, Prima Diamond XIII, Prince 
Jim, Prince Jim 1, Red Delight, Red Glo, Red Roy, Rose Diamond, Royal 
Glo, Sparkling May, White Sun, or Zee Grand variety nectarines unless:
* * * * *
    (6) Any package or container of Alta Red, Arctic Blaze, Arctic Ice, 
Arctic Jay, Arctic Mist, Arctic Pride, Arctic Queen, Arctic Snow (White 
Jewel), Arctic Sweet, August Glo, August Lion, August Pearl, August 
Red, August Snow, Big Jim, Bright Pearl, Bright Sweet, Candy Gold, 
Candy Sweet, Diamond Ray, Early Red Jim, Firebrite, Fire Pearl, Fire 
Sweet, Flame Glo, Flaming Red, Grand Diamond, Grand Pearl, Grand Sweet, 
Honey Blaze, Honey Kist, Honey Royale, July Pearl, July Red, June Lion, 
Kay Pearl, King Jim, Late Red Jim, P-R Red, Prima Diamond IX, Prima 
Diamond XVIII, Prima Diamond XIX, Prima Diamond XXIV, Prima Diamond 
XXVIII, Red Diamond, Red Glen, Red Jim, Regal Pearl, Regal Red, Royal 
Giant, Ruby Diamond, Ruby Pearl, Ruby Sweet, Scarlet Red, September 
Bright (26P-490), September Free, September Red, Sparkling June, 
Sparkling Red, Spring Bright, Spring Sweet, Summer Blush, Summer 
Bright, Summer Diamond, Summer Fire, Summer Grand, Summer Jewel, Summer 
Lion, Summer Red, Sunburst, Sun Diamond, Sunny Red, Sun Valley Sweet, 
Sweet White, Terra White, or Zee Glo variety nectarines unless:
* * * * *

PART 917--FRESH PEARS AND PEACHES GROWN IN CALIFORNIA

0
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 through November 23, 2003, 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.

0
5. Section 917.442 is amended by:
0
A. Revising paragraph (a)(1);
0
B. Revising Table 3;
0
C. Revising paragraph (a)(9); and
0
D. Revising paragraph (d) to read as follows:


Sec.  917.442  California peach container and pack regulation.

    (a) * * *
    (1) Such peaches, when packed in any closed package or container, 
except master containers of consumer packages, individual consumer 
packages, and five down Euro containers, shall conform to the 
requirements of standard pack: Provided, That peaches in any such 
volume-filled container need only be filled to within one-inch of the 
top of the container.
* * * * *
    (5) * * *
    (iv) * * *

Table 3.--Weight-Count Standards for Peento Type Peaches Packed in Loose-
                    Filled or Tight-Filled Containers
------------------------------------------------------------------------
                                             Column B--  Maximum  number
   Column A-- Tray pack size designation      of  peaches in a 16-pound
                                                        sample
------------------------------------------------------------------------
80.........................................  140
72.........................................  128
70.........................................  111
64.........................................  99
60.........................................  93
56.........................................  87
54.........................................  80
50.........................................  77
48.........................................  74
44.........................................  70

[[Page 17266]]

 
42.........................................  68
40.........................................  59
36.........................................  53
34.........................................  50
32.........................................  39
30.........................................  32
------------------------------------------------------------------------

* * * * *
    (9) Each five down Euro container of loose-filled peaches shall 
bear on one outside end in plain sight and in plain letters the words 
``31 pounds net weight.''
* * * * *
    (d) During the period April 1 through November 23, 2003, each 
container or package when packed with peaches meeting ``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 all other required markings, in letters at least 
\3/8\ inch in height.

0
7. Section 917.459 is amended by:
0
A. Revising the introductory text of paragraph (a)(1);
0
B. Revising the introductory text of paragraph (a)(1)(iv);
0
C. Revising Table 1; and
0
D. Revising the introductory text of paragraphs (a)(3), (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, 2003, 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 requirement 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) The Federal or Federal-State Inspection Service shall make the 
final determinations on maturity through the use of color chips or 
other tests as determined appropriate by the inspection agency. The 
Federal or Federal-State Inspection Service will use the maturity 
guides listed in Table 1 in making maturity determinations for the 
specified varieties when inspecting to the ``well matured'' level of 
maturity. For these varieties, not less than 90 percent of any lot 
shall meet the color guide established for the variety, and an 
aggregate area of not less than 90 percent of the fruit surface shall 
meet the color guide established for the variety, except that for the 
Joanna Sweet variety of peaches, any of the fruit surface that is not 
red shall meet the color guide established for the variety, including 
any color noted in the stem cavity. For varieties not listed, the 
Federal or Federal-State Inspection Service will use such tests as it 
deems proper. A variance for any variety from the application of the 
maturity guides specified in Table 1 may be granted during the season 
to reflect changes in crop, weather, or other conditions that would 
make the specified guides an inappropriate measure of ``well matured.''

                                 Table 1
------------------------------------------------------------------------
              Column A variety                Column B  maturity  guide
------------------------------------------------------------------------
Angelus....................................  I
August Lady................................  L
Autumn Flame...............................  J
Autumn Gem.................................  I
Autumn Lady................................  H
Autumn Red.................................  J
Autumn Rose................................  H
Blum's Beauty..............................  G
Brittney Lane..............................  J
Cal Red....................................  I
Carnival...................................  I
Cassie.....................................  H
Coronet....................................  E
Crimson Lady...............................  J
Crown Princess.............................  J
David Sun..................................  I
Diamond Princess...........................  J
Earlirich..................................  H
Earlitreat.................................  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
Golden Princess............................  L
Honey Red..................................  G
Joanna Sweet...............................  J
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
Madonna Sun................................  J
Magenta Queen..............................  J
May Crest..................................  G
May Sun....................................  I
Merrill Gem................................  G
Merrill Gemfree............................  G
Morning Lord...............................  J
O'Henry....................................  I
Pacifica...................................  G
Pretty Lady................................  J
Prima Gattie 8.............................  L
Prima Gattie 10............................  J
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 Flame............................  I
September Sun..............................  I
Sierra Crest...............................  H
Sierra Lady................................  I
Sparkle....................................  I
Sprague Last Chance........................  L
Springcrest................................  G
Spring Delight.............................  G
Spring Lady................................  H
Springtreat................................  I

[[Page 17267]]

 
Summer Lady................................  L
Summerset..................................  I
Summer Zee.................................  L
Suncrest...................................  G
Supechfour (Amber Crest)...................  G
Super Rich.................................  H
Sweet Dream................................  J
Sweet Gem..................................  J
Sweet Mick.................................  J
Sweet Scarlet..............................  J
Topcrest...................................  H
Tra Zee....................................  J
Vista......................................  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.

* * * * *
    (3) Any package or container of Snow Kist or Super Rich variety 
peaches unless:
* * * * *
    (5) Any package or container of Babcock, Bev's Red, Brittney Lane, 
Crimson Lady, Crown Princess, David Sun, Early May Crest, Flavorcrest, 
Happy Dream, June Lady, Kern Sun, Kingscrest, Magenta Queen, May Crest, 
May Sun, May Sweet, Pink Rose, Prima Peach IV, Queencrest, Ray Crest, 
Redtop, Rich May, Rich Mike, Snow Brite, Snow Prince, Springcrest, 
Spring Flame 21, Spring Lady, Spring Snow, Springtreat (60EF32), Sugar 
May, Sunlit Snow (172LE81), Sweet Scarlet, Zee Diamond, 012-094, or 
172LE White Peach (Crimson Snow/Sunny Snow) variety peaches unless:
* * * * *
    (6) Any package or container of August Flame, August Lady, Autumn 
Flame, Autumn Red, Autumn Rose, Autumn Snow, Cassie, Coral Princess, 
Country Sweet, Diamond Princess, Earlirich, Early Elegant Lady, Elegant 
Lady, Fairtime, Fancy Lady, Fay Elberta, Flamecrest, Full Moon, Henry 
II, Ivory Princess, Jillie White, Joanna Sweet, John Henry, July Flame, 
June Flame, June Pride, Kaweah, Kings Lady, Klondike, Late Ito Red, 
O'Henry, Pink Giant, Pretty Lady, Prima Gattie 8, Prima Peach 13, Prima 
Peach XV, Prima Peach 20, Prima Peach 23, Prima Peach XXV, Prima Peach 
XXVII, Princess Gayle, Queen Lady, Red Dancer, Red Giant, Rich Lady, 
Royal Lady, Ryan Sun, Saturn (Donut), Scarlet Snow, September Flame, 
September Snow, September Sun, Sierra Gem, Sierra Lady, Snow Beauty, 
Snow Blaze, Snow Fall, Snow Gem, Snow Giant, Snow Jewel, Snow King, 
Snow Princess, Sprague Last Chance, Spring Gem, Sugar Giant, Sugar 
Lady, Summer Dragon, Summer Lady, Summer Sweet, Summer Zee, Supechfour 
(Amber Crest), Sweet Dream, Sweet Gem, Sweet Kay, Sweet September, Tra 
Zee, Vista, White Lady, Zee Lady, or 24-SB variety peaches unless:
* * * * *

    Dated: April 3, 2003.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 03-8650 Filed 4-4-03; 1:33 pm]
BILLING CODE 3410-02-P