[Federal Register Volume 83, Number 130 (Friday, July 6, 2018)]
[Proposed Rules]
[Pages 31471-31473]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-14511]


 ========================================================================
 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. 83, No. 130 / Friday, July 6, 2018 / Proposed 
Rules  

[[Page 31471]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 906

[Doc. No. AMS-SC-17-0049; SC17-906-2 PR]


Oranges and Grapefruit Grown in Lower Rio Grande Valley in Texas; 
Changing of Container Requirements

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposed rule invites comments on a recommendation to 
change the container requirements under the marketing order for oranges 
and grapefruit grown in the Lower Rio Grande Valley in Texas. This 
action would remove five containers from the list of authorized 
containers and add seven new containers to the list. This change would 
also modify the descriptions of two authorized containers.

DATES: Comments must be received by August 6, 2018.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposed rule. Comments must be sent to the Docket 
Clerk, Marketing Order and Agreement Division, Specialty Crops Program, 
AMS, USDA, 1400 Independence Avenue SW, STOP 0237, Washington, DC 
20250-0237; Fax: (202) 720-8938; or internet: http://www.regulations.gov. All comments should reference the document number 
and the date and page number of this issue of the Federal Register and 
will be made available for public inspection in the Office of the 
Docket Clerk during regular business hours, or can be viewed at: http://www.regulations.gov. All comments submitted in response to this 
proposal will be included in the record and will be made available to 
the public. Please be advised that the identity of the individuals or 
entities submitting the comments will be made public on the internet at 
the address provided above.

FOR FURTHER INFORMATION CONTACT: Doris Jamieson, Marketing Specialist, 
or Christian D. Nissen, Regional Director, Southeast Marketing Field 
Office, Marketing Order and Agreement Division, Specialty Crops 
Program, AMS, USDA; Telephone: (863) 324-3375, Fax: (863) 291-8614, or 
Email: [email protected] or [email protected].
    Small businesses may request information on complying with this 
regulation by contacting Richard Lower, Marketing Order and Agreement 
Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue 
SW, STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-2491, 
Fax: (202) 720-8938, or Email: [email protected].

SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553, 
proposes amendments to regulations used to carry out a marketing order 
as defined in 7 CFR 900.2(j). This proposed rule is issued under 
Marketing Agreement and Order No. 906, as amended (7 CFR part 906), 
regulating the handling of oranges and grapefruit grown in the Lower 
Rio Grande Valley in Texas. Part 906 (referred to as the ``Order'') is 
effective under the Agricultural Marketing Agreement Act of 1937, as 
amended (7 U.S.C. 601-674), hereinafter referred to as the ``Act.'' The 
Texas Valley Citrus Committee (Committee) locally administers the Order 
and is comprised of growers and handlers of Texas citrus operating 
within the production area.
    The Department of Agriculture (USDA) is issuing this proposed rule 
in conformance with Executive Orders 13563 and 13175. This action falls 
within a category of regulatory actions that the Office of Management 
and Budget (OMB) exempted from Executive Order 12866 review. 
Additionally, because this proposed rule does not meet the definition 
of a significant regulatory action, it does not trigger the 
requirements contained in Executive Order 13771. See OMB's Memorandum 
titled ``Interim Guidance Implementing Section 2 of the Executive Order 
of January 30, 2017, titled `Reducing Regulation and Controlling 
Regulatory Costs' '' (February 2, 2017).
    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. This rule is not intended to have retroactive 
effect.
    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.
    This proposed rule would remove five containers from the list of 
authorized containers under the Order and would add seven new 
containers to the list. This action would also modify the descriptions 
of two authorized containers. The Committee recommended these changes 
to align the Order's container regulations with current industry 
practices. The Committee unanimously recommended the changes at a 
meeting on June 8, 2017.
    Section 906.40(d) of the Order authorizes the issuance of 
regulations to fix the size, weight, capacity, dimensions, or pack of 
the container or containers which may be used in the packaging, 
transportation, sale, shipment, or other handling of fruit. Section 
906.340 provides that no handler shall handle any variety of oranges or 
grapefruit grown in the production area unless such fruit is packed in 
one of the containers specified under the Order. This section also 
specifies a detailed list of the containers currently authorized under 
the Order. In addition, this section allows the Committee to approve 
the use of other types and sizes of containers for testing for research 
purposes.
    The Committee reviewed the containers listed in Sec.  906.340 and 
compared them to the containers being utilized throughout the industry. 
This process included surveying handlers to

[[Page 31472]]

determine which containers were being used. As a result, the Committee 
determined five of the authorized containers were no longer being used 
to pack Texas oranges or grapefruit.
    The Committee also reviewed the list of experimental containers 
that had been approved for testing purposes. Seven of the experimental 
containers have been widely accepted throughout the Texas citrus 
industry and are being used to pack and ship Texas citrus. As a result 
of the review, the Committee voted to remove the five containers that 
were no longer being used from the list of authorized containers and 
add the seven experimental containers to Sec.  906.340.
    The Committee also discussed that while the description in Sec.  
906.340(a)(1)(ii) of the closed fully telescopic fiberboard carton with 
approximate inside dimensions of 16\1/2\ by 10\3/4\ by 9\1/2\ inches is 
correct, this container is commonly known throughout the Texas citrus 
industry as a standard carton. Consequently, for clarification 
purposes, the Committee voted to add the words ``Standard Carton'' to 
this container description.
    Further, the Committee noted that in Sec.  906.340(a)(1)(iv) poly 
or mesh bags can be used to pack oranges and grapefruit to a capacity 
of 5, 8, 10, or 18 pounds of fruit, but that only oranges can be packed 
in the 4-pound bags. During the discussion, Committee members agreed 
handlers should also be allowed to ship grapefruit in 4-pound bags. 
Thus, the Committee voted to update the description to allow for the 
packing of both oranges and grapefruit in poly or mesh bags having a 
capacity of 4 pounds.
    The Committee believes these proposed changes would reflect the 
containers being utilized throughout the industry and would align the 
regulations with current industry practices.
    Section 8e of the Act provides that when certain domestically 
produced commodities, including oranges, are regulated under a Federal 
marketing order, imports of that commodity must meet the same or 
comparable grade, size, quality, and maturity requirements. As this 
rule changes the container requirements under the domestic handling 
regulations, no corresponding change to the import regulations is 
required.

Initial Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), 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 
businesses 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.
    There are approximately 170 producers of oranges and grapefruit in 
the production area and 13 handlers subject to regulation under the 
Order. Small agricultural producers are defined by the Small Business 
Administration (SBA) as those having annual receipts less than 
$750,000, and small agricultural service firms are defined as those 
whose annual receipts are less than $7,500,000 (13 CFR 121.201).
    Based on National Agricultural Statistics Service (NASS) and 
Committee data, the average price for Texas citrus during the 2016-17 
season was approximately $16 per carton, and total shipments were 7.6 
million cartons. Using the average price and shipment information, the 
number of handlers (13), and assuming a normal distribution, the 
majority of handlers would have average annual receipts of 9.4 million, 
which is greater than $7,500,000. ($16 per carton times 7.6 million 
cartons equals $121.6 million, divided by 13 equals 9.4 million per 
handler.) Thus, the majority of Texas citrus handlers may be classified 
as large business entities.
    In addition, based on NASS information, the weighted grower price 
for Texas citrus during the 2016-17 season was approximately $9.35 per 
carton. Using the weighted average price and shipment information, the 
number of producers (170) and assuming a normal distribution, the 
majority of producers would have annual receipts of $418,000, which is 
less than $750,000. ($9.35 per carton times 7.6 million cartons equals 
$71.06 million, divided by 170 equals $418,000 per producer.) Thus, the 
majority of Texas citrus producers may be classified as small entities.
    This proposed rule would revise the container requirements 
established under the Order. This rule would remove five containers 
from the list of authorized containers and add seven new containers to 
the list. This action would also update one container to allow handlers 
to use it to pack oranges and grapefruit, and would modify the 
description of another container to indicate it is the standard 
container used by the industry. These changes would align the list of 
authorized containers with current industry needs and practices. This 
rule would revise Sec.  906.340. Authority for these changes is 
provided in Sec.  906.40.
    It is not anticipated that this proposed rule would impose 
additional costs on handlers or growers, regardless of size. The 
containers that would be removed from the list of authorized containers 
are no longer being used by the industry. This rule would provide an 
additional container for packing grapefruit, clarify the description 
for one container, and adjust the container regulations to better 
reflect current industry practices. The benefits of this rule are 
expected to be equally available to all fresh orange and grapefruit 
growers and handlers, regardless of size.
    The Committee considered alternatives to this action, including 
making no changes to the list of authorized containers. However, it was 
determined that making the recommended changes would provide an up-to-
date list of containers currently being used by the Texas citrus 
industry. Therefore, the Committee rejected this alternative.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the Order's information collection requirements have been 
previously approved by OMB and assigned OMB No. 0581-0189, Generic 
Fruit Crops. No changes in those requirements would be necessary as a 
result of this action. Should any changes become necessary, they would 
be submitted to OMB for approval.
    This proposed rule would not impose any additional reporting or 
recordkeeping requirements on either small or large Texas orange and 
grapefruit 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.
    AMS is committed to complying with the E-Government Act to promote 
the use of the internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.
    USDA has not identified any relevant Federal rules that duplicate, 
overlap, or conflict with this proposed rule.
    In addition, the Committee's meeting was widely publicized 
throughout the Texas citrus industry, and all interested persons were 
invited to attend the meeting and participate in Committee 
deliberations on all issues. Like all

[[Page 31473]]

Committee meetings, the June 8, 2017, meeting was a public meeting, and 
all entities, both large and small, were able to express their views on 
this issue. Finally, interested persons are invited to submit comments 
on this proposed rule, including the regulatory and information 
collection 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: http://www.ams.usda.gov/rules-regulations/moa/small-businesses. Any questions 
about the compliance guide should be sent to Richard Lower at the 
previously mentioned address in the FOR FURTHER INFORMATION CONTACT 
section.
    A 30-day comment period is provided to allow interested persons to 
respond to this proposal. All written comments timely received will be 
considered before a final determination is made on this matter.

List of Subjects in 7 CFR Part 906

    Grapefruit, Marketing agreements, Oranges, Reporting and 
recordkeeping requirements.

    For the reasons set forth in the preamble, 7 CFR part 906 is 
proposed to be amended as follows:

PART 906--ORANGES AND GRAPEFRUIT GROWN IN LOWER RIO GRANDE VALLEY 
IN TEXAS

0
1. The authority citation for 7 CFR part 906 continues to read as 
follows:

    Authority:  7 U.S.C. 601-674.

0
2. Revise Sec.  906.340(a)(1) to read as follows:


Sec.  906.340   Container, pack, and container marking regulations.

    (a) * * *
    (1) Containers. (i) Closed fiberboard carton with approximate 
inside dimensions of 13\1/4\ x 10\1/2\ x 7\1/4\ inches: Provided, That 
the container has a Mullen or Cady test of at least 200 pounds;
    (ii) Closed fully telescopic fiberboard carton with approximate 
inside dimensions of 16\1/2\ x 10\3/4\ x 9\1/2\ inches (Standard 
carton);
    (iii) Poly or mesh bags having a capacity of 4, 5, 8, 10, or 18 
pounds of fruit;
    (iv) Rectangular or octagonal bulk fiberboard crib with approximate 
dimensions of 46 to 47\1/2\ inches in length, 37 to 38 inches in width, 
and 36 inches in height: Provided, That the container has a Mullen or 
Cady test of at least 1,300 pounds, and that it is used only once for 
the shipment of citrus fruit: And Provided further, That the container 
may be used to pack any poly or mesh bags authorized in this section, 
or bulk fruit;
    (v) Rectangular or octagonal \2/3\ fiberboard crib with approximate 
dimensions of 46 to 47\1/2\ inches in length, 37 to 38 inches in width, 
and 24 inches in height: Provided, That the crib has a Mullen or Cady 
test of at least 1,300 pounds, and that it is used only once for the 
shipment of citrus fruit: And Provided further, That the container may 
be used to pack any poly or mesh bags authorized in this section, or 
bulk fruit;
    (vi) Octagonal fiberboard crib with approximate dimensions of 46 to 
47\1/2\ inches in width, 37 to 38 inches in depth, and 26 to 26\1/2\ 
inches in height: Provided, That the crib has a Mullen or Cady test of 
at least 1,300 pounds, and that it is used only once for the shipment 
of citrus fruit: And Provided further, That the crib may be used to 
pack any poly or mesh bags authorized in this section, or bulk fruit;
    (vii) Fiberboard box holding two layers of fruit, with approximate 
dimensions of 23 inches in length, 15\1/2\ inches in width, and 7 
inches in depth;
    (viii) Reusable collapsible plastic container with approximate 
dimensions of 23 inches in length, 15 inches in width, and 7 to 11 
inches in depth;
    (ix) Reusable collapsible plastic bin with approximate dimensions 
of 36\3/4\ x 44\3/4\ x 27 inches;
    (x) Octagonal bulk triple wall fiberboard crib with approximate 
dimensions of 37\3/4\ inches in length, 25 inches in width, and 25 
inches in height: Provided, That the container has a Mullen or Cady 
test of at least 1,100 pounds: And Provided further, That the container 
may be used to pack any poly or mesh bags authorized in this section, 
or bulk fruit;
    (xi) Bag having the capacity of 15 pounds of fruit, either in a 
combination \1/2\ poly and \1/2\ mesh bag or mesh bag;
    (xii) Reusable collapsible plastic mini bin with approximate 
dimensions of 39\1/2\ inches in length, 24 inches in width, and 30\1/2\ 
inches in height: Provided, That the container may be used to pack any 
poly or mesh bags authorized in this section, or bulk fruit;
    (xiii) Bag having the capacity of three pounds of fruit;
    (xiv) Standard carton with approximate inside dimensions of 16.375 
x 10.6875 x 10.25 inches;
    (xv) \8/5\ Body master carton with approximate inside dimensions of 
19.5385 x 13.125 x 11.625 inches, one piece;
    (xvi) Euro \8/5\ (5 Down) with approximate inside dimensions of 
22.813 x 14.688 x 7.0 up to 7.936 inches;
    (xvii) Fiberboard one piece display container with approximate 
inside dimensions of 23 inches x 15 inches x 9\1/2\ up to 10\1/2\ 
inches in depth;
    (xviii) Such types and sizes of containers as may be approved by 
the committee for testing in connection with a research project 
conducted by or in cooperation with the committee: Provided, That the 
handling of each lot of fruit in such test containers shall be subject 
to prior approval and under the supervision of the committee.
* * * * *

    Dated: July 2, 2018.
Bruce Summers,
Administrator, Agricultural Marketing Service.
[FR Doc. 2018-14511 Filed 7-5-18; 8:45 am]
 BILLING CODE 3410-02-P