[Federal Register Volume 69, Number 106 (Wednesday, June 2, 2004)]
[Proposed Rules]
[Pages 31039-31045]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-12201]


 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
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  Federal Register / Vol. 69, No. 106 / Wednesday, June 2, 2004 / 
Proposed Rules  

[[Page 31039]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 56

[Docket No. PY-03-005]
RIN 0581-AC33


Voluntary Shell Egg Grading Regulations--Facilities and Equipment

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: The Agricultural Marketing Service (AMS) proposes to amend the 
regulations governing the voluntary shell egg grading program. The 
proposed revisions would add definitions that describe the official 
identification and packaging of shell eggs; provide that grading 
services may be requested or reported by electronic means; clarify the 
number of samples required for an appeal grading when the original 
samples are not available; require that plants provide two candling 
lights in an acceptable candling booth for grade determination; provide 
an additional method for lot identifying shell eggs; and clarify and 
update the facility and operating requirements of plants utilizing the 
voluntary grading service. The proposal would also provide that cooler 
rooms holding shell eggs identified with a consumer grade shall be 
capable of maintaining a relative humidity of 70 percent or higher. 
Interested parties are particularly invited to submit any data or 
studies regarding the relative humidity requirement. From time to time, 
sections in the regulations are affected by changes in egg production 
and processing technology. This rule updates the regulations to reflect 
these changes.

DATES: Comments must be received on or before August 2, 2004.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposed rule to David Bowden, Jr., Chief, 
Standardization Branch, Poultry Programs, Agricultural Marketing 
Service, U.S. Department of Agriculture, Stop 0259, room 3944-South, 
1400 Independence Avenue, SW., Washington, DC 20250. Comments may be 
faxed to (202) 690-0941. Comments should be submitted in duplicate. 
Comments may also be submitted electronically to: [email protected] 
or www.regulations.gov. All comments should refer to Docket No. PY-03-
005 and note the date and page number of this issue of the Federal 
Register. All comments received will be made available for public 
inspection at the above location during regular business hours. 
Comments received also will be made available over the Internet in the 
rulemaking section of the AMS Web site www.ams.usda.gov/rulemaking. A 
copy of this proposed rule may be found at: www.ams.usda.gov/poultry/regulations/rulemakeing/index.htm.

FOR FURTHER INFORMATION CONTACT: Rex A. Barnes, Chief, Grading Branch, 
(202)720-3271.

SUPPLEMENTARY INFORMATION: 

Background and Proposed Changes

    Shell egg grading is a voluntary program provided under the 
Agricultural Marketing Act of 1946, as amended, (7 U.S.C. 1621 et seq.) 
and is offered on a fee-for-service basis. It is designed to assist in 
the orderly marketing of shell eggs by providing for the official 
certification of egg quality, quantity, size, temperature, packaging, 
and other factors.
    Changing technology in egg production and processing requires that 
the regulations governing shell egg grading be updated. The proposal 
would update the requirements to bring them in line with the 
requirements that applicants utilizing official grading services must 
meet. After a plant makes an application for grading service, an agency 
representative conducts a plant survey. The survey determines if the 
plant premises, facility, equipment, and operation procedures can 
satisfactorily support the official grading of shell eggs. These 
prerequisite requirements are based on good manufacturing practices 
typically associated with food processing and have specific application 
to shell egg processing. Proposed changes included the following:
    (1) Definitions. The definitions of ``chief of the grading branch'' 
and ``national supervisor'' would be revised to reflect the current 
organizational structure in AMS. New definitions for ``Agricultural 
Marketing Service or AMS'', ``consumer grades,'' ``packaging,'' 
``packing,'' and ``United States Standards, Grades, and Weight Classes 
for Shell Eggs'' would be added to establish a clear meaning for these 
terms. (Sec.  56.1)
    (2) Candling Lights. As newer and faster equipment has been 
developed and installed in official plants, the need for additional 
facilities and equipment to grade official samples has increased. To 
provide acceptable space and equipment for two graders to perform 
official grading activities or have space available for a supervisor to 
conduct supervisory visits without disrupting the grading activities of 
the official grader, this rule would revise the candling light 
requirement from one to two and would require a candling booth of 
sufficient size to accommodate at least two candling lights for 
additional graders. (Sec.  56.17)
    (3) Communications. The current regulations specify that service 
may be requested or reported by telephone or telegraph. Even though 
these forms of communication may still be used, the revisions would 
allow alternate forms of electronic communications as are currently 
available in the market place. (Sec. Sec.  56.21, 56.58)
    (4) Temporary Grading Service. Processors are now able to request 
temporary grading service which provides them the ability to pack 
grade-identified shell eggs into officially grademarked cartons without 
utilizing continuous resident grading service. They must still meet all 
facility, equipment, and operating requirements specified for plants 
utilizing continuous grading services. This revision would add 
temporary grading service as a type of grading service that could be 
requested by an applicant. The regulations would also be revised by 
providing that certificates may be issued to an applicant who utilizes 
temporary grading. (Sec. Sec.  56.17, 56.56)
    (5) Lot Numbering. The current regulations specify that product be 
lot numbered on either the carton or the consumer package. Processors 
have requested that they be allowed to lot identify shell eggs by 
placing the lot number on the individual egg. This revision would 
update the regulations to

[[Page 31040]]

reflect changes in the marketing of shell eggs. (Sec.  56.37)
    (6) Official Identification. The current regulations specify that 
the official identification of any graded product shall be done only 
under the supervision of a grader or quality assurance inspector. The 
revision would clarify that only product which is identified with the 
grademark shall be officially identified under the supervision of a 
grader or quality assurance inspector. (Sec.  56.39)
    (7) Types of Grading Services. The types of grading services 
available to an applicant would be added. There are often questions 
about each type of available grading service and this revision would 
provide an explanation of those services. (Sec.  56.28)
    (8) Appeal Gradings. The sample size of an appeal grading when the 
original samples are not available or have undergone a material change 
would be double the samples required by Sec.  56.4(b). The current 
regulations specify that only in the instance where the original 
samples are not available shall the appeal sample size be double that 
required by Sec.  56.4(b). It is necessary to increase the sample size 
to improve the confidence level of results and properly resolve the 
issue prompting the applicant's appeal. (Sec.  56.65)
    (9) Occupational Safety and Health Regulations. The shell egg 
industry is subject to Federal, State, and local government 
occupational safety and health regulations. This proposal would update 
the regulations to reflect that an applicant utilizing the official 
grading service must be in compliance with all applicable Federal, 
State, and local government occupational safety and health regulations. 
(56.76)
    (10) General Premises. General premise requirements would be added. 
The current regulations do not specify such requirements. In order to 
grade and pack shell eggs in the most efficient and sanitary manner, 
shell egg graders and packers must maintain the premises of their 
facilities in a manner that is not a deterrent to the grading and 
packing of shell eggs. The revision would specify that the premises of 
the facility be maintained in an appropriate manner. (Sec.  56.76)
    (11) Structures and Facilities. The current regulations specify 
that only certain facilities, such as benches, and only certain 
structures, such as walls, are required to be replaced with materials 
impervious to moisture when they become subjected to moisture or 
develop odors. The revision would update the regulations to reflect 
that all structures and facilities subject to moisture must be readily 
cleanable, sanitarily maintained, and impervious to moisture and that 
floors are constructed for proper drainage. (Sec.  56.76)
    (12) Lavatories and Toilets. The current regulations specify that 
lavatory and toilet accommodations shall be provided with hot and cold 
running water, ventilation, and hand washing instruction signs. The 
revisions would also specify that the facilities be located in areas 
separate and away from the grading and processing rooms. (Sec.  56.76)
    (13) Storage Areas. The current regulations do not specify 
requirements for storage areas for storing packing and packaging 
materials to be used for consumer labeled shell eggs. This revision 
would specify that adequate packing and packaging storage areas be 
provided and properly maintained in order that packing and packaging 
are stored in a dry, clean, and sanitary environment. (Sec.  56.76)
    (14) Grading and Packing Rooms. The current regulations that 
specify grading and packing room requirements should be updated to 
reflect the current state of technology in egg production and 
processing. The revision would update the requirements of the grading 
and packing rooms by specifying their sanitary design and construction. 
Additionally, the revision would specify that during operations the 
sanitation of the processing areas and equipment be maintained in a 
satisfactory manner. (Sec.  56.76)
    (15) Shell Egg Cooler Rooms. The current regulations provide that 
humidifying equipment capable of maintaining a relative humidity, which 
will minimize shrinkage, shall be provided. However, they do not 
specify a percentage of relative humidity that the equipment should 
provide. The revision would specify that the regulations provide that 
the cooler rooms which will hold consumer labeled shell eggs shall be 
capable of maintaining a relative humidity of 70 percent or higher and 
that appropriate equipment be provided to measure relative humidity. 
(Sec.  56.76)
    (16) Shell Egg Protecting Operations. The current regulations that 
specify shell egg protecting operation requirements should be updated 
to reflect the current state of technology in egg production and 
processing. The revision would update the regulations by specifying 
that the requirements for shell egg protecting equipment include its 
sanitary design, maintenance, and operation. The revision would also 
eliminate the requirement that previously used contaminated oil be heat 
treated prior to its reuse. This is an obsolete process that is not 
used and should be removed from the regulations. (Sec.  56.76)
    (17) Shell Egg Washing. The current regulations specify that shell 
egg cleaning equipment shall be maintained and properly cleaned. These 
regulations should be updated to reflect the changing technology in egg 
production and processing. The revision would specify that shell egg 
washing equipment be sanitarily designed and maintained in a clean and 
sanitary manner. The revision would also specify that shell egg drying 
equipment be sanitarily designed and maintained, that air used for 
drying must be filtered, and that filters are to be cleaned and 
maintained. (Sec.  56.76)
    (18) Shell Egg Wash Water. The current regulations specify the 
temperatures of shell egg wash water, but do not specify that an 
accurate thermometer is to be provided to monitor the required wash 
water temperature. The revision would clarify that the plant would be 
responsible for providing an accurate thermometer to measure the 
temperature of the wash water. (Sec.  56.76)
    (19) Spray Rinse Sanitizer. The current regulations specify that 
shell eggs be spray rinsed with water containing an approved sanitizer 
of not less than 50 p/m nor more than 200 p/m of available chlorine. 
The revision would revise the regulations to reflect that the spray 
rinse contains a sanitizer approved by the national supervisor of not 
less than 100 p/m nor more than 200 p/m of available chlorine or its 
equivalent. With the development of newer and faster processing 
equipment, the speed at which shell eggs are processed has increased. 
Correspondingly, this increase in speed has resulted in shell eggs 
being spray rinsed with an approved sanitizer for a shorter period of 
time, reducing the overall effectiveness of the sanitizing spray rinse. 
However, when the minimum amount of sanitizer used to spray rinse shell 
eggs is increased, the loss in effectiveness caused by the increased 
speed of the processing equipment is reduced. The revision would update 
the regulations to reflect that shell eggs receive an increased 
exposure to an approved sanitizer. (Sec.  56.76)
    (20) Shell Egg Washing. The current regulations specify that shell 
eggs be removed from washing equipment during any rest period. The 
revision would reflect that shell eggs be removed from the processing 
equipment during any non-processing periods to prevent loss of egg 
quality from extended exposure to elevated temperatures. (Sec.  56.76)

[[Page 31041]]

    (21) Removal of Washing Operation Steam and Vapors. The current 
regulations specify that steam and vapors from the washing operation be 
continuously and directly removed from the building. The revision would 
specify that steam, vapors, or odors originating from washing and 
rinsing operations shall be exhausted to the outside of the building to 
prevent the development of an undesirable environment in the shell egg 
processing room. (Sec.  56.76)
    (22) Shell Egg Packing. The current regulations that specify the 
packing requirements for eggs that are to be identified with a 
grademark should be updated to reflect the type of packing and 
packaging materials used by shell egg processors. When the regulations 
were promulgated most all packing materials were constructed of fiber 
materials. Today many other materials, such as plastic and metal, are 
used in the construction of packing materials. The revision would add 
that eggs that are to be identified with a grademark may be packed in 
other than fiber packing materials. (Sec.  56.76)
    (23) Approval of Chemicals and Compounds. The current regulations 
specifying the requirements for the use of approved chemicals and 
compounds should be updated. The regulations would be updated to 
reflect that the national supervisor, Poultry Programs is responsible 
for determining acceptance of the intended use of chemicals and 
compounds for their specified use. Shell egg processing facilities will 
still be responsible for using chemicals and compounds in accordance 
with the manufacturer's instructions. (Sec.  56.76)

Executive Order 12866 and Effect on Small Entities

    This rule has been determined to be not significant for purposes of 
Executive Order 12866 and, therefore, has not been reviewed by the 
Office of Management and Budget (OMB). In addition, pursuant to 
requirements set forth in the Regulatory Flexibility Act (RFA) (5 
U.S.C. 601 et seq.), AMS has considered the economic impact of the rule 
on small entities and has determined that its provisions would not have 
a significant economic impact on a substantial number of small 
entities.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. The Small Business 
Administration (SBA)(13 CFR 121.201) defines small entities that 
produce and process chicken eggs as those whose annual receipts are 
less than $9,000,000. Approximately 625,000 egg laying hens are needed 
to produce enough eggs to gross $9,000,000.
    Currently, the Agricultural Marketing Act of 1946, as amended, (7 
U.S.C. 1621 et seq.) authorizes a voluntary grading program for shell 
eggs. Shell egg processors that apply for service must pay for the 
services rendered. So that costs are shared by all users, these user 
fees are proportional to the volume of shell eggs graded. Shell egg 
processors are entitled to pack their eggs in packages bearing the USDA 
grade shield when AMS graders are present to certify that the eggs meet 
the grade requirements as labeled. Plants in which these grading 
services are performed are called official plants. Shell egg processors 
who do not use USDA's grading service may not use the USDA grademark. 
There are about 558 shell egg processors registered with the Department 
that have 3,000 or more laying hens. Of these, 161 are official plants 
that use USDA's grading service and would be subject to this proposed 
rule. Of these 161 official plants, 38 meet the small business 
definition.
    One proposal would require that plants provide two candling lights 
in an acceptable candling booth. This change is necessary to provide 
requested grading service in an acceptable manner with the new 
equipment and facilities that have been developed and installed in 
official plants. As new facilities have been built and existing 
facilities renovated, they have been equipped with at least two 
candling lights in acceptable candling booths. Currently, all of the 
plants that utilize the voluntary grading program for shell eggs have 
at least two acceptable candling lights. Therefore, this proposal would 
have no adverse economic impact on processors.
    One proposal would allow producers to request service by electronic 
communications. Similarly, another proposal would allow the results of 
grading to be disseminated by any acceptable means of communications. 
These proposals provide that processors are able to receive or send 
communications by the most acceptable and efficient means of 
communication that the current state of technology allows. These 
proposals expand the way that producers may communicate. Therefore, 
these proposals would also have no adverse economic impact on 
producers.
    One proposal would include temporary grading service as a type of 
grading service that shell egg processors may request. Another proposal 
would provide that certificates may be issued under temporary grading 
service. This service is currently being offered to the industry as a 
method by which shell egg processors can pack eggs into shielded 
cartons without utilizing official continuous grading service. These 
proposals would only formalize this type of service. Because the 
service is already available and being used, they would have no 
economic impact on processors.
    One proposal to establish an alternate method of lot numbering eggs 
would allow shell egg processors to place a code date on an individual 
egg. This action will bring the regulations in line with a procedure 
that is currently approved by the Agency and in use in the market 
place. This proposal would have no adverse economic impact on 
processors.
    One proposal would clarify and update facility requirements. This 
proposal would update the regulations by incorporating requirements 
that a plant must currently meet prior to the start of grading service 
at a facility. After a plant makes an application for grading service, 
an Agency representative conducts a plant survey to determine if the 
plant premises, facility, and equipment can satisfactorily support the 
official grading of shell eggs. These pre-requisite requirements are 
based on good manufacturing practices typically associated with food 
processing and have specific application to shell egg processing. 
Plants currently utilizing the grading service must maintain their 
premises, facility, equipment, and operating procedures at a minimum 
acceptance level. This proposal would only reflect the requirements 
which facilities are presently meeting and would have no economic 
impact on processors.
    One proposal that updates the facility requirements would require 
that cooler rooms that hold shell eggs identified with a consumer 
grademark be capable of maintaining a relative humidity of 70 percent 
or higher. The regulations currently provide that humidifying equipment 
capable of maintaining a relative humidity, which will minimize 
shrinkage, shall be provided. However, the regulations do not specify a 
percentage of relative humidity that the equipment should provide. A 
relative humidity of 70% or higher is considered sound and conforms 
with processing operations presently in use by the shell egg 
industry.\1\ This provides a level of

[[Page 31042]]

humidity that will maintain the quality of shell eggs. This proposal 
would have no adverse economic impact on processors.
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    \1\ Stadelman and Cotterill in Egg Science and Technology, 4th 
Edition, 1995, recommend that the relative humidity of egg holding 
rooms should not drop below 60 percent relative humidity to retard 
evaporation and prevent a loss in shell egg quality. Moreover, 
Stadelman and Cotterill recommend that eggs be held under a relative 
humidity of 70 percent to 80 percent.
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    Other changes to the definitions and editorial-type changes would 
clarify and update the existing regulations and would have no economic 
impact on entities using voluntary shell egg grading service.
    For the above reasons, the Agency has certified that this action 
will not have a significant economic impact on a substantial number of 
small entities.

Executive Order 12988

    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. This action is not intended to have retroactive 
effect. This rule will not preempt any State or local laws, 
regulations, or policies, unless they present an irreconcilable 
conflict with this rule. There are no administrative procedures which 
must be exhausted prior to any judicial challenge to the provisions of 
this rule.

Paperwork Reduction

    The information collection requirements in Sec. Sec.  56.21(a), 
56.21(c), 56.37, 56.56(a), 56.58, 56.76(f)(7), and 56.76(h) to be 
amended by this rule have been previously approved by OMB and assigned 
OMB control number 0581-0128 under the Paper Reduction Act of 1995.
    AMS is committed to compliance with the Government Paperwork 
Elimination Act, which requires Government agencies in general to 
provide the public the option of submitting information or transacting 
business electronically to the maximum extent possible.

List of Subjects in 7 CFR Part 56

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

    For reasons set forth in the preamble, it is proposed that 7 CFR 
part 56 be amended as follows:

PART 56--VOLUNTARY GRADING OF SHELL EGGS

    1. The authority citation for part 56 continues to read as follows:

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

    2. In Sec.  56.1, revise the terms chief of the grading branch and 
national supervisor and add, alphabetically, the new terms Agricultural 
Marketing Service or AMS, consumer grades, grademark, official 
standards, officially identified, packaging, packing, and United States 
Standards, Grades, and Weight Classes for Shell Eggs to read as 
follows:


Sec.  56.1  Meaning of words and terms defined.

* * * * *
    Agricultural Marketing Service or AMS means the Agricultural 
Marketing Service of the Department.
* * * * *
    Chief of the Grading Branch means the Chief of the Grading Branch, 
Poultry Programs, AMS.
* * * * *
    Consumer grades means U.S. Grade AA, A, and B.
* * * * *
    Grademark means the official identification symbol (shield) used to 
identify eggs officially graded according to U.S. consumer grade 
standards.
* * * * *
    National supervisor means (a) the officer in charge of the shell 
egg grading service of the AMS, and (b) other employees of the 
Department designated by the national supervisor.
* * * * *
    Official standards means the official U.S. standards grades, and 
weight classes for shell eggs maintained by and available from Poultry 
Programs, AMS.
    Officially identified means eggs that have official marks applied 
to the product under the authority of the AMS in accordance with the 
act and its regulations.
* * * * *
    Packaging means the primary or immediate container in which eggs 
are packaged and which serves to protect, preserve, and maintain the 
condition of the eggs.
    Packing means the secondary container in which the primary or 
immediate container is placed to protect, preserve, and maintain the 
condition of the eggs during transit or storage.
* * * * *
    United States Standards, Grades, and Weight Classes for Shell Eggs 
(AMS 56) means the official U.S. standards, grades, and weight classes 
for shell eggs that are maintained by and available from Poultry 
Programs, AMS.
* * * * *
    3. In Sec.  56.9, the table in paragraph (b) is amended by removing 
the entries for 56.76(e)(6) and 56.76(g) and adding in their place the 
entries for 56.76(f)(7), 56.76(h), and 56.21(c) to read as follows:


Sec.  56.9.  OMB control numbers assigned pursuant to the Paperwork 
Reduction Act.

* * * * *
    (b) * * *

------------------------------------------------------------------------
                                                            Current  OMB
       7 CFR section where identified and described          control No.
------------------------------------------------------------------------
 
                                * * * * *
56.21(c)..................................................     0581-0128
 
                                * * * * *
56.76(f)(7)...............................................     0581-0128
56.76(h)..................................................     0581-0128
------------------------------------------------------------------------

    4. Section 56.17 is amended by revising the introductory text and 
paragraph (a)(5), and by adding a new paragraph (a)(6) to read as 
follows:


Sec.  56.17  Facilities and equipment for graders.

    Facilities and equipment to be furnished by the applicant for use 
of graders in performing service on a resident or temporary basis shall 
include (when deemed necessary) the following:
    (a) * * *
    (5) Two candling lights that provide a sufficient combined 
illumination through both the aperture and downward through the bottom 
to facilitate accurate interior and exterior quality determinations; 
and
    (6) A candling booth adequately darkened and located in close 
proximity to the work area that is reasonably free of excessive noise. 
The booth must be sufficient in size to accommodate two graders, two 
candling lights, and other necessary grading equipment.
    5. Section 56.21 is amended by revising paragraph (a) and adding 
paragraph (c) to read as follows:


Sec.  56.21  How application for service may be made; conditions of 
service.

    (a) Noncontinuous grading service on a fee basis. An application 
for any noncontinuous grading service on a fee basis may be made in any 
office of grading, or with any grader at or nearest the place where the 
service is desired. Such application may be made orally (in person or 
by telephone), in writing, or by other electronic means.
* * * * *
    (c) Temporary grading service on a fee basis. An application for 
grading service on a temporary basis must be made in writing on forms 
approved by the Administrator and filed with the Administrator. Such 
forms may be obtained at the national, regional, or State grading 
office. In making application, the applicant agrees to comply with the 
terms and conditions

[[Page 31043]]

of the regulations (including, but not limited to, such instructions 
governing grading of products as may be issued from time to time by the 
Administrator). No member of or Delegate to Congress or Resident 
Commissioner shall be admitted to any benefit that may arise from such 
service unless derived through service rendered a corporation for its 
general benefit.
    6. Section 56.28 is added to read as follows:


Sec.  56.28  Types of grading service.

    (a) Noncontinuous grading service. This type of service is 
performed when an applicant requests grading of a particular lot of 
shell eggs. Requests are made not on a regular basis. Charges or fees 
are based on the time, travel, and expenses needed to perform the work. 
This service also may be called the fee grading service. Shell eggs 
graded under fee grading service are not eligible to be identified with 
the official grademarks shown in Sec.  56.36.
    (b) Continuous grading service on a resident basis and continuous 
grading service on a nonresident basis. Service on a resident basis has 
a scheduled tour of duty, while service on a nonresident basis has a 
nonscheduled tour of duty. Both of these services are performed when an 
applicant requests that a USDA licensed grader be stationed in the 
applicant's processing plant and grade shell eggs in accordance with 
U.S. Standards. The applicant agrees to comply with the facility, 
operating, and sanitary requirements of resident service. The charges 
for resident grading services are based on the hours of the regular 
tour of duty and the volume of shell eggs received into the plant, 
while nonscheduled service is based on the cumulative time required to 
perform the work and an administrative service charge. Shell eggs 
graded under resident grading service are only eligible to be 
identified with the official grademarks shown in Sec.  56.36 when 
processed and graded under the supervision of a grader or quality 
assurance inspector as provided in Sec.  56.39.
    (c) Temporary grading service. This type of service is performed 
when an applicant requests resident grading on a fee basis. The 
applicant must meet all of the facility, operating, and sanitary 
requirements of resident service. Charges or fees are based on the time 
and expenses needed to perform the work. Shell eggs graded under 
temporary grading service are only eligible to be identified with the 
official grademarks when they are processed and graded under the 
supervision of a grader or quality assurance inspector as provided in 
Sec.  56.39.
    7. Section 56.37 is amended by revising the section heading and 
first sentence to read as follows:


Sec.  56.37  Lot marking of officially identified shell eggs.

    Shell eggs identified with the grademarks shown in Sec.  56.36 
shall be legibly lot numbered on either the individual egg, the carton, 
or the consumer package. * * *
    8. The undesignated center heading that precedes Sec.  56.39 is 
revised to read as follows:

Prerequisites to Packaging Shell Eggs Identified With Grademarks

    9. In Sec.  56.39, the first sentence is revised to read as 
follows:


Sec.  56.39  Quality assurance inspector required.

    The official identification with the grademark of any product as 
provided in Sec. Sec.  56.35 through 56.41, inclusive, shall be done 
only under the supervision of a grader or quality assurance inspector. 
* * *
    10. Section 56.40 is amended by revising the section heading and 
paragraph (c) to read as follows:


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

* * * * *
    (c) Shell eggs which are to bear the grademark shall be packed only 
from eggs of current production. They shall not possess any undesirable 
odors or flavors.
    11. In Sec.  56.56, the headings of paragraphs (a) and (b) are both 
amended by adding the words ``or temporary'' between the words 
``resident grading.''
    12. Section 56.58 is revised to read as follows:


Sec.  56.58  Advance information

    Upon request of an applicant, all or part of the contents of any 
grading certificate issued to such applicant may be telephoned or 
electronically transmitted to the applicant, or to the applicant's 
designee, at the applicant's expense.
    13. In Sec.  56.65, paragraph (b) is revised to read as follows:


Sec.  56.65  Procedures for appeal gradings

* * * * *
    (b) When the original samples are not available or have undergone a 
material change, the appeal sample size for the lot shall consist of 
double the samples required in Sec.  56.4(b).
* * * * *
    14. Section 56.75 is revised to read as follows:


Sec.  56.75  Applicability of facility and operating requirements.

    The provisions of Sec.  56.76 shall be applicable to any grading 
service that is provided on a resident or temporary basis.
    15. Section 56.76 is revised to read as follows:


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

    (a) Applicants must comply with all applicable Federal, State and 
local government occupational safety and health regulations.
    (b) General requirements for premises, buildings and plant 
facilities. (1) The outside premises shall be free from refuse, 
rubbish, waste, unused equipment, and other materials and conditions 
which constitute a source of odors or a harbor for insects, rodents, 
and other vermin.
    (2) The outside premises adjacent to grading, packing, cooler, and 
storage rooms must be properly graded and well drained to prevent 
conditions that may constitute a source of odors or propagate insects 
or rodents.
    (3) Buildings shall be of sound construction so as to prevent, 
insofar as practicable, the entrance or harboring of vermin.
    (4) Grading and packing rooms shall be of sufficient size to permit 
installation of necessary equipment and conduct grading and packing in 
a sanitary manner. These rooms shall be kept reasonably clean during 
grading and packing operations and shall be thoroughly cleaned at the 
end of each operating day.
    (5) The floors, walls, ceilings, partitions, and other parts of the 
grading and packing rooms including benches and platforms shall be 
constructed of materials that are readily cleanable, maintained in a 
sanitary condition, and impervious to moisture in areas exposed to 
cleaning solutions or moist conditions. The floors shall be constructed 
as to provide proper drainage.
    (6) Adequate toilet accommodations which are conveniently located 
and separated from the grading and packing rooms are to be provided. 
Handwashing facilities shall be provided with hot and cold running 
water, an acceptable handwashing detergent, and a sanitary method for 
drying hands. Toilet rooms shall be ventilated to the outside of the 
building and be maintained in a clean and sanitary condition. Signs 
shall be posted in the toilet rooms instructing employees to wash their 
hands before returning to work. In new or remodeled construction, 
toilet rooms shall be

[[Page 31044]]

located in areas that do not open directly into processing rooms.
    (7) A separate refuse room or a designated area for the 
accumulation of trash must be provided in plants which do not have a 
system for the daily removal or destruction of such trash.
    (8) Adequate packing and packaging storage areas are to be provided 
that protect packaging materials and are dry and maintained in a clean 
and sanitary condition.
    (c) Grading and packing room requirements. (1) The egg grading or 
candling area shall be adequately darkened to make possible the 
accurate quality determination of the candled appearance of eggs. There 
shall be no other light source or reflection of light that interfere 
with, or prohibit the accurate quality determination of eggs in the 
grading or candling areas.
    (2) The grading and candling equipment shall provide adequate light 
to facilitate quality determinations. When needed, other light sources 
and equipment or facilities shall be provided to permit the detection 
and removal of stained and dirty eggs or other undergrade eggs.
    (3) The grading and candling equipment must be sanitarily designed 
and constructed to facilitate cleaning. Such equipment shall be kept 
reasonably clean during grading and packing operations and be 
thoroughly cleaned at the end of each operating day.
    (4) Egg weighing equipment shall be constructed of materials to 
permit cleaning; operated in a clean, sanitary manner; and shall be 
capable of ready adjustment.
    (5) Adequate ventilation, heating, and cooling shall be provided 
where needed.
    (d) Cooler room requirements. (1) Cooler rooms holding shell eggs 
that are identified with a consumer grade shall be refrigerated and 
capable of maintaining an ambient temperature no greater than 45 [deg]F 
(7.2 [deg]C) and a relative humidity of 70 percent or higher. Accurate 
thermometers and hygrometers shall be provided for monitoring cooler 
room temperatures and relative humidity.
    (2) Cooler rooms shall be free from objectionable odors and from 
mold, and shall be maintained in a sanitary condition.
    (e) Shell egg protecting operations. (1) Shell egg protecting (oil 
application) operations shall be conducted in a manner to avoid 
contamination of the product and maximize conservation of its quality.
    (2) Component equipment within the shell egg protecting system, 
including holding tanks and containers, must be sanitarily designed and 
maintained in a clean and sanitary manner, and the application 
equipment must provide an adequate amount of oil for shell coverage of 
the volume of eggs processed.
    (3) Eggs with excess moisture on the shell shall not be shell 
protected.
    (4) Oil having any off odor, or that is obviously contaminated, 
shall not be used in shell egg protection operations. Oil is to be 
filtered prior to application.
    (5) The component equipment of the application system shall be 
washed, rinsed, and treated with a bactericidal agent each time the oil 
is removed.
    (6) Adequate coverage and protection against dust and dirt shall be 
provided when the equipment is not in use.
    (f) Shell egg cleaning operations. (1) Shell egg washing equipment 
must be sanitarily designed, maintained in a clean and sanitary manner, 
and thoroughly cleaned at the end of each operating day.
    (2) Shell egg drying equipment must be sanitarily designed and 
maintained in a clean and sanitary manner. Air used for drying purposes 
must be filtered. These filters shall be cleaned or replaced as needed 
to maintain a sanitary process.
    (3) The temperature of the wash water shall be maintained at 90 
[deg]F (32.2 [deg]C) or higher, and shall be at least 20 [deg]F (6.7 
[deg]C) warmer than the internal temperature of the eggs to be washed. 
These temperatures shall be maintained throughout the cleaning cycle. 
Accurate thermometers shall be provided for monitoring wash water 
temperatures.
    (4) Approved cleaning compounds shall be used in the wash water.
    (5) Wash water shall be changed approximately every 4 hours or more 
often if needed to maintain sanitary conditions, and at the end of each 
shift. Remedial measures shall be taken to prevent excess foaming 
during the egg washing operation.
    (6) Replacement water shall be added continuously to the wash water 
of washers. Chlorine or quaternary sanitizing rinse water may be used 
as part of the replacement water, provided, they are compatible with 
the washing compound. Iodine sanitizing rinse water may not be used as 
part of the replacement water.
    (7) Only potable water may be used to wash eggs. Each official 
plant shall submit certification to the national office stating that 
their water supply is potable. An analysis of the iron content of the 
water supply, stated in parts per million, is also required. When the 
iron content exceeds 2 parts per million, equipment shall be provided 
to reduce the iron content below the maximum allowed level. Frequency 
of testing for potability and iron content shall be determined by the 
Administrator. When the water source is changed, new tests are 
required.
    (8) Waste water from the egg washing operation shall be piped 
directly to drains.
    (9) The washing, rinsing, and drying operations shall be continuous 
and shall be completed as rapidly as possible to maximize conservation 
of the egg's quality and to prevent sweating of eggs. Eggs shall not be 
allowed to stand or soak in water. Immersion-type washers shall not be 
used.
    (10) Prewetting shell eggs prior to washing may be accomplished by 
spraying a continuous flow of water over the eggs in a manner which 
permits the water to drain away or other methods which may be approved 
by the Administrator. The temperature of the water shall be the same as 
prescribed in this section.
    (11) Washed eggs shall be spray-rinsed with water having a 
temperature equal to, or warmer than, the temperature of the wash 
water. The spray-rinse water shall contain a sanitizer that has been 
determined acceptable for the intended use by the national supervisor 
and of not less than 100 p/m nor more than 200 p/m of available 
chlorine or its equivalent. Alternate procedures, in lieu of a 
sanitizer rinse, may be approved by the national supervisor.
    (12) Test kits shall be provided and used to determine the strength 
of the sanitizing solution.
    (13) During non-processing periods, eggs shall be removed from the 
washing and rinsing area of the egg washer and from the scanning area 
whenever there is a buildup of heat that may diminish the quality of 
the egg.
    (14) Washed eggs shall be reasonably dry before packaging and 
packing.
    (15) Steam, vapors, or odors originating from the washing and 
rinsing operation shall be continuously and directly exhausted to the 
outside of the building.
    (g) Requirements for eggs officially identified with a grademark. 
(1) Shell eggs that are officially identified with a consumer grademark 
shall be placed under refrigeration at an ambient temperature no 
greater than 45 [deg]F (7.2 [deg]C) promptly after packaging.
    (2) Eggs that are to be officially identified with the grademark 
shall be packed only in new or good used packing material and new 
packaging materials that are clean, free of mold, mustiness and off 
odors, and must be of sufficient strength and durability to adequately 
protect the eggs during

[[Page 31045]]

normal distribution. When packed in other than fiber packing material, 
the containers must be of sound construction and maintained in a 
reasonably clean manner.
    (h) Use of approved chemicals and compounds. (1) All egg washing 
and equipment cleaning compounds, defoamers, destainers, sanitizers, 
inks, oils, lubricants, or any other compound that comes into contact 
with the shell eggs shall be approved by the national supervisor for 
their specified use and handled in accordance with the manufacturer's 
instructions.
    (2) All pesticides, insecticides, and rodenticides shall be 
approved for their specified use and handled in accordance with the 
manufacturer's instructions.

    Dated: May 25, 2004.
A. J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 04-12201 Filed 6-1-04; 8:45 am]
BILLING CODE 3401-02-P