[Federal Register Volume 70, Number 185 (Monday, September 26, 2005)]
[Proposed Rules]
[Pages 56139-56140]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-19087]


 ========================================================================
 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. 70, No. 185 / Monday, September 26, 2005 / 
Proposed Rules  

[[Page 56139]]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 56 and 57

[Docket No. PY-05-003]
RIN 0581-AC47


Update and Clarify a Shell Egg Grading Definition

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: The Agricultural Marketing Service (AMS) proposes to amend the 
regulations governing the voluntary shell egg grading program and the 
regulations governing the inspection of eggs. The proposed revision 
would revise the definition of washed ungraded eggs in each of the 
regulations. 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 November 25, 2005.

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-05-
003 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 http://www.ams.usda.gov/rulemaking. A copy of this proposed rule may be found at: http://www.ams.usda.gov/poultry/regulations/rulemaking/index.htm.

FOR FURTHER INFORMATION CONTACT: Charles L. Johnson, Chief, Grading 
Branch, (202) 720-3271.

SUPPLEMENTARY INFORMATION: 

Background and Proposed Changes

    AMS administers a voluntary grading program for shell eggs under 
the Agricultural Marketing Act of 1946, as amended (AMA) (7 U.S.C. 1621 
et seq.). Any interested party that applies for service must comply 
with the terms and conditions of the regulations and must pay for the 
services rendered. AMS graders monitor processing operations and verify 
the grade and size of eggs packed into packages bearing the USDA 
grademark. Regulations governing this program are contained in 7 CFR 
part 56.
    AMS also administers a mandatory inspection program for shell eggs 
under the Egg Products Inspection Act (EPIA) (21 U.S.C. 1031 et seq.). 
This inspection program ensures that shell eggs sold to consumers 
contain no more restricted eggs than are permitted in the standards for 
consumer grades. Regulations governing this program are contained in 7 
CFR part 57.
    The Agency routinely reviews its regulations to ensure that they 
are current and up-to-date. The latest review of 7 CFR part 56 and 7 
CFR part 57 identified the following changes that are needed to bring 
the regulations up-to-date with current egg production and processing 
technology.

Washed Ungraded Eggs

    The Agency is proposing to clarify the definition of washed 
ungraded eggs that appears in both regulations. The definitions 
currently state that washed ungraded eggs mean ``* * * eggs which have 
been washed but not sized or segregated for quality.'' The revised 
definitions will state that washed ungraded eggs mean ``* * * eggs 
which have been washed and that are either sized or unsized, but not 
segregated for quality.''
    In many in-line shell egg production facilities, shell eggs move 
continuously from a laying house to the processing operation. 
Frequently, eggs move through washing equipment and are segregated to 
remove obvious defects (leakers, dirts, etc.) but are not graded or 
segregated for quality. The resultant shell eggs may no longer be 
labeled or designated as ``nest-run'' because they have been washed.
    Similar to nest-run shell eggs, washed, ungraded, unsized product 
is not subject to inspection under the EPIA during a shell egg 
surveillance inspection unless the product is being offered for 
consumer sale. Washed, ungraded, unsized product, which is not intended 
for sale to consumers, is sold to official breaking plants or is 
reprocessed and graded at a shell egg grading facility for consumer 
sales.
    In the early 1990s, Poultry Programs determined that a name 
designation was needed to reference and label washed, ungraded, unsized 
shell eggs. Since the product did not meet the criteria for nest-run 
eggs, Poultry Programs proposed establishing a category of shell eggs 
known as ``washed ungraded eggs'' to mean eggs that were washed, 
unsized, and not segregated for quality.
    In 1995 through notice and comment rulemaking, Poultry Programs 
amended the voluntary shell egg regulations at 7 CFR part 56 and 
defined shell eggs that have been washed but not segregated for grade 
or size to mean ``washed ungraded eggs''. This definition has worked 
well; however, as production and processing practices have changed, 
many in-line shell egg production facilities now segregate washed 
ungraded eggs by size.
    Consequently, the resultant washed, ungraded, sized eggs are not 
clearly defined by the regulations. The current definition of washed 
ungraded eggs needs to be revised to include eggs that may either be 
sized or unsized. This revision will clarify that this product is to be 
reprocessed and graded and is not intended for sale to consumers.
    Since washed ungraded, sized shell eggs do not meet the criteria 
under the definition of washed ungraded eggs, we propose to revise the 
definition for washed ungraded eggs to mean eggs that are washed, sized 
or unsized, but not segregated for quality.
    The revision is necessary to facilitate the trading, certification, 
and identification of shell eggs from processing facilities when shell 
eggs move from laying houses to processing facilities without being 
graded.

[[Page 56140]]

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 AMA authorizes a voluntary grading program for shell 
eggs. Shell egg processors that apply for service must pay for the 
services rendered. 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 540 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.
    The EPIA authorizes the mandatory inspection of egg products 
operations and the mandatory surveillance of the disposition of shell 
eggs that are undesirable for human consumption, with implementing 
regulations in 7 CFR part 57. All of the approximate 540 shell egg 
processors registered with the Department are required to comply with 
the labeling provisions of the EPIA and would be subject to this 
proposed rule. Of these 540 shell egg processors, 313 meet the small 
business definition.
    This proposal will not have an adverse economic impact on 
processors. It would revise the AMA and the EPIA regulations by up-
dating the definition of washed ungraded eggs to reflect current egg 
production and processing technology.
    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 Orders 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 Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
3501 et seq.) the Office of Management and Budget (OMB) has approved 
the information collection and recordkeeping requirements included in 
this proposed rule, and there are no new requirements. The assigned OMB 
control number is 0581-0128.
    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

7 CFR Part 56

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

7 CFR Part 57

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

    For reasons set forth in the preamble, it is proposed that 7 CFR 
parts 56 and 57 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 term Washed ungraded eggs to read as 
follows:


Sec.  56.1  Meaning of words and terms defined.

* * * * *
    Washed ungraded eggs means eggs which have been washed and that are 
either sized or unsized, but not segregated for quality.

PART 57--INSPECTION OF EGGS (EGGS PRODUCTS INSPECTION ACT)

    3. The authority citation for part 57 continues to read as follows:

    Authority: 21 U.S.C. 1031-1056.

    4. In Sec.  57.1, revise the term Washed ungraded eggs to read as 
follows:


Sec.  57.1  Definitions.

* * * * *
    Washed ungraded eggs means eggs which have been washed and that are 
either sized or unsized, but not segregated for quality.

    Dated: September 20, 2005.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. 05-19087 Filed 9-23-05; 8:45 am]
BILLING CODE 3410-02-P