Nectarines and Peaches Grown in California; Revision of Handling Requirements for Fresh Nectarines and Peaches, 18847-18856 [07-1867]

Agencies

• Agricultural Marketing Service
• DEPARTMENT OF AGRICULTURE

[Federal Register Volume 72, Number 72 (Monday, April 16, 2007)]
[Rules and Regulations]
[Pages 18847-18856]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 07-1867]



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Federal Register / Vol. 72, No. 72 / Monday, April 16, 2007 / Rules 
and Regulations

[[Page 18847]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 916 and 917

[Docket No. AMS-FV-07-0030; FV07-916/917-4 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 eliminates grade, size, maturity, pack, container 
and inspection requirements for all California nectarines and peaches 
except those packed in containers labeled ``California Well Matured'' 
or ``CA WELL MAT''. This rule also makes seasonal adjustments to the 
handling requirements applicable to well matured fruit. Finally, this 
rule removes certain handler reporting requirements that are deemed no 
longer necessary. 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 should reduce handler costs while enabling 
handlers to continue to meet the demands of their buyers.

DATES: Effective April 17, 2007. Comments received by June 15, 2007 
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 Internet: 
https://www.regulations.gov. 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: 
https://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Jennifer Garcia, Marketing Specialist, 
or Kurt J. Kimmel, Regional Manager, California Marketing Field Office, 
Marketing Order Administration Branch, Fruit and Vegetable Programs, 
AMS, USDA; Telephone: (559) 487-5901, Fax: (559) 487-5906; or E-mail: 
Jennifer.Garcia3@usda.gov or Kurt.Kimmel@usda.gov.
    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: Jay.Guerber@usda.gov.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing Order 
Nos. 916 and 917, both as amended (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.
    This rule: (1) Eliminates grade, size, maturity, pack, container 
and inspection requirements for all California nectarines and peaches 
except those packed in containers labeled ``California Well Matured'' 
or ``CA WELL MAT'; (2) Makes seasonal adjustments to the handling 
requirements applicable to California Well Matured fruit; and (3) 
Removes certain handler reporting requirements that are deemed no 
longer necessary.
    These changes are intended to allow industry handlers to reduce 
costs and provide them greater flexibility in meeting buyer 
preferences. Also, adjustments are made in light of the newly 
implemented California State marketing program.
    Sections 916.52 and 917.41 of the orders provide authority for 
handling regulations for fresh California nectarines and peaches. The 
regulations may include grade, size, maturity, quality, pack, and 
container requirements. The orders also provide that whenever such 
requirements are in effect, the fruit subject to such regulation must 
be inspected by the Federal or Federal-State Inspection Service 
(Inspection Service) and certified as meeting the applicable 
requirements.
    The nectarine order has been in effect since 1939, and the peach 
program has been in effect since 1958. The orders have been used over 
the years to establish a quality control program that includes minimum 
grades, sizes, and maturity standards. That program has helped improve 
the quality of product moving from the farm to market, and has helped 
growers and handlers more effectively market their crops. Additionally, 
the orders have been used to ensure that only satisfactory quality 
nectarines and peaches reach the consumer. This has helped increase and 
maintain market demand over the years.
    Sections 916.53 and 917.42 authorize the modification, suspension, 
or

[[Page 18848]]

termination of regulations issued under 916.52 and 917.41, 
respectively. Changes in regulations have been implemented to reflect 
changes in industry operating practices and to solve marketing problems 
as they arise. The committees, which are responsible for local 
administration of the orders, meet whenever needed, but at least 
annually, to discuss the orders and the various regulations in effect 
and to determine if, or what, changes may be necessary to reflect 
industry needs. As a result, regulatory changes have been made numerous 
times over the years to address industry changes and to improve program 
operations.
    The industry has struggled to reduce costs in recent years. In its 
efforts to reduce costs, the industry considered adopting audit-based 
inspection programs in lieu of traditional inspection programs. 
Ultimately these programs would not provide sufficient savings to the 
industry. More recently, the industry considered replacing the existing 
Federal marketing orders with programs under the State of California 
that would not require Federal or Federal-State inspection of 
nectarines and peaches. In 2006, at the request of the industry, the 
California Department of Food and Agriculture promulgated a State 
program authorizing voluntary inspections for the nectarine and peach 
industry.
    Beginning with the 2007 season, under the State program, all fruit 
must meet at least a modified U.S. No 1 grade and be ``mature'' as 
defined in the United States Standards for Grades of Nectarines (7 CFR 
51.3145 through 51.3160) and United States Standards for Grades of 
Peaches (7 CFR 51.1210 through 51.1223) (hereinafter referred to as the 
``Standards''). Inspection costs under the program are expected to be 
minimal, because inspection would not be mandatory. The industry has 
also shifted its data collection and promotional activities over to the 
State program.
    The industry subsequently discussed removing all handling 
regulations under the Federal orders. This would have also resulted in 
the elimination of all inspection requirements and expenses under the 
Federal orders. However, the industry believes that buyers value the 
committees' ``CA WELL MAT'' mark as an indicator of high quality and 
may be willing to pay a premium price for fruit marked as such. The 
``CA WELL MAT'' certification mark is owned by the California Tree 
Fruit Agreement, the management organization of the Peach Commodity 
Committee (PCC), which also manages the Nectarine Administrative 
Committee (NAC). Accordingly, the committees decided to maintain all 
Federal marketing order handling requirements, including inspection and 
certification requirements, for ``California well matured'' fruit. The 
committees, thus, recommended revising the handling regulations to 
cover only nectarines and peaches packed in containers marked ``CA WELL 
MAT'' or ``California Well Matured'.
    The term ``well matured'' is defined in the orders'' rules and 
regulations, and has been used for many years by the industry to 
describe a level of maturity higher than the definition of ``mature'' 
in the Standards. The Inspection Service has been providing 
certification that these products meet the definition. Containers of 
nectarines and peaches bearing the certification mark must meet all of 
the requirements entailed in the definition of ``well matured.'' Thus, 
nectarines and peaches must continue to meet the grade and size 
requirements set forth in the orders' rules and regulations.
    The committees met on February 9, 2007, and unanimously recommended 
that the handling requirements be revised for the 2007 season, which is 
expected to begin in April. 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, based on sufficient chill 
hours and a strong bloom, preliminary estimates indicate that the 2007 
crop will be slightly larger than the 2006 crop, which totaled 
approximately 17,078,801 containers of nectarines and 19,231,534 
containers of peaches.

Container and Pack Requirements

    Sections 916.52 and 917.41 of the orders authorize the 
establishment of pack and container requirements for nectarines and 
peaches, respectively. Such requirements appear in Sec. Sec.  916.115, 
916.350, 917.150 and 917.442 of the orders' rules and regulations.
    Currently, Sec. Sec.  916.115 and 917.150 require that all 
containers of nectarines and peaches, respectively, be stamped with an 
Inspection Service lot number showing that such fruit has been 
inspected. Since only nectarines and peaches marked ``CA WELL MAT'' or 
``California Well Matured'' will be subject to inspection requirements 
beginning in the 2007 season, Sec. Sec.  916.115 and 917.150 are 
revised to specify that lot stamping is only required on containers so 
marked.
    This rule also revises paragraph (a)(3) of Sec. Sec.  916.350 and 
917.442 to remove references to ``U.S. Mature'' and ``US Mat'' 
container markings. These references are no longer needed since only 
fruit packed in containers marked ``CA WELL MAT'' or ``California Well 
Matured'' will be subject to handling regulations under the orders this 
season.
    Sections 916.350 and 917.442 also establish weight-count standards 
for packed containers of nectarines and peaches, respectively. These 
regulations define a maximum number of nectarines or peaches in a 
sample when such fruit, which may be packed in tray-packed containers, 
is converted to volume-filled containers. The regulations also specify 
how the containers must be marked. In paragraph (a)(8) of Sec.  916.350 
and (a)(9) of Sec.  917.442, weight marking requirements are 
established for nectarines and peaches packed in volume-filled Euro 
style containers.
    According to the committees, some retailers have requested handlers 
to supply volume-filled Euro containers with a net weight that is equal 
to the weight of tray-packed Euro containers. By eliminating the net 
weight requirement for volume-filled Euro containers, handlers are 
allowed to increase or decrease the amount of fruit in the container to 
match the net weight of fruit in a tray-packed Euro container, thus 
giving them more flexibility when marketing their fruit.

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. Currently, nectarines and peaches are subject to 
a modified U.S. No. 1 grade requirement. Handlers are also able to pack 
to a ``CA Utility'' quality standards, subject to container labeling 
requirements. The committees recommended continued use of these grade 
and quality requirements.
    However, they recommended that these requirements only be applied 
to nectarines and peaches packed in containers marked ``CA WELL MAT'' 
or ``California Well Matured''. This rule revises paragraph (a) of 
Sec. Sec.  916.356 and 917.459 to specify such requirements only for 
containers of nectarines and peaches marked ``CA WELL MAT'' or 
``California Well Matured'' during the 2007 and subsequent seasons.
    These changes will allow industry handlers to reduce inspection 
costs by removing inspection and certification requirements on 
containers not marked ``CA WELL MAT'' and provide them greater 
flexibility in meeting buyer preferences.
    This rule also revises paragraph (a)(1) of Sec.  916.356 to add an 
additional

[[Page 18849]]

tolerance for Peento-type nectarines. Peento-type nectarines, also 
known as donut[reg] nectarines due to their flattened shape, 
are prone to growth cracks, which emanate from the blossom end of the 
fruit. The committees believe that this is a minor defect that does not 
affect the edibility of the fruit. Thus, this action will make more 
Peento-type nectarines available to consumers without materially 
impacting the overall quality of the fruit.

Maturity Requirements

    Sections 916.52 and 917.41 of the orders also authorize the 
establishment of maturity requirements for nectarines and peaches, 
respectively. The minimum maturity level currently specified for 
nectarines and peaches is ``mature'' as defined in the Standards. The 
regulations also define a higher level of maturity (``well-matured'') 
that can be used at the option of handlers.
    For most varieties, ``well-matured'' determinations for nectarines 
and peaches are made using maturity guides (e.g., color chips,) along 
with other maturity tests as may be applied by the Inspection Service. 
These maturity guides are reviewed each year by the Inspection Service 
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 appear in Table 1 in paragraphs (a)(1)(iv) of 
Sec. Sec.  916.356 and 917.459, for nectarines and peaches, 
respectively. Seasonal adjustments being made to the maturity guide are 
described below.
    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, the 
Inspection Service recommended adding maturity guides for the Larry's 
Red, September Bright, and WF 1 varieties to be regulated at the J 
maturity guide, and for the Prima Diamond VII variety to be regulated 
at the L maturity guide.
    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 11 peach varieties. Specifically, the Inspection Service 
recommended adding maturity guides for the Super Chief and Sweet Crest 
varieties to be regulated at the H maturity guide; the Junelicious 
variety to be regulated at the I maturity guide; the Burpeachfourteen 
(Spring Flame[reg] 20), Henry III, Sharise, Sierra Rich, 
Sweet Blaze and Sweet Kay varieties to be regulated at the J maturity 
guide; and the Bright Princess and Summer Fling varieties to be 
regulated at the L maturity guide.
    The committees recommended these maturity guide requirements based 
on the Inspection Service's continuing review of individual maturity 
characteristics and identification of the appropriate maturity guide 
corresponding to the ``well-matured'' level of maturity for nectarine 
and peach varieties in production.

Size Requirements

    Both orders provide authority (in Sec. Sec.  916.52 and 917.41) 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, thereby increasing returns 
to producers and handlers. In addition, increased fruit size results in 
increased numbers of packed containers of nectarines and peaches per 
acre, which is also a benefit to producers and handlers.
    Several years ago the committees recommended revisions to allow 
handlers of late season nectarine and peach varieties to pack smaller 
sized fruit as long as the fruit was ``well matured''. This rule 
revises the size regulations in paragraphs (a)(6)(i), (a)(6)(ii), 
(a)(9)(i), and (a)(9)(ii) of Sec.  916.356 and paragraphs (a)(6)(i) and 
(a)(6)(ii) to remove size options since only containers marked ``CA 
WELL MAT'' or ``California Well Matured'' will be subject to the size 
regulations under the orders.
    Varieties recommended for specific size regulations have been 
reviewed and such recommendations are based on the specific 
characteristics of each variety. The committees 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 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 paragraphs (a)(3), (a)(4), and 
(a)(6) of Sec.  916.356 to establish variety-specific minimum size 
requirements for fourteen varieties of nectarines that were produced in 
commercially significant quantities of more than 10,000 containers for 
the first time during the 2006 season.
    For example, one of the varieties recommended for addition to the 
variety-specific minimum size requirements is the Burnectfive (Spring 
Flare[reg] 21) variety of nectarines, recommended for 
regulation at a minimum size 96. Studies of the size ranges attained by 
the Burnectfive (Spring Flare[reg] 21) variety revealed that 
100 percent of the containers met the minimum size of 96 during the 
2005 and 2006 seasons. Sizes ranged from size 50 to size 96, with 5.8 
percent of the fruit in the 50 sizes, 15.7 percent of the packages in 
the 60 sizes, 28.6 percent in the 70 sizes, 34.1 percent in the 80 
sizes, and 16.8 percent in the 90 sizes.
    A review of other varieties with the same harvesting period 
indicated that the Burnectfive (Spring Flare[supreg] 21) 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 Burnectfive (Spring Flare[supreg] 
21) variety in the variety-specific minimum size regulation at a 
minimum size 96 is appropriate. This recommendation results from size 
studies conducted over a two-year period.
    Historical data such as this provides the committee 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, 
paragraph(a)(3) of Sec.  916.356 is revised to include the Burnectfive 
(Spring Flare[supreg] 21) variety; paragraph (a)(4) of Sec.  916.356 is 
revised to include the Burnecttwelve (Sweet Flare[supreg] 21), Early 
Pearl, and Rose Bright varieties; and paragraph (a)(6) of Sec.  916.356 
is revised to include the August Bright, Burnectseventeen (Summer 
Flare[supreg] 32), Candy Pearl, Grand Candy, Honey Diva, Larry s Red, 
Prima Diamond VII, Spring Pearl , Sugarine, and Zephyr nectarine 
varieties.
    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 
paragraphs (a)(2), (a)(3), (a)(4), (a)(5), and (a)(6) of Sec.  917.459 
to

[[Page 18850]]

establish variety-specific minimum size requirements for 11 peach 
varieties that were produced in commercially significant quantities of 
more than 10,000 containers for the first time during the 2006 season. 
This rule also removes the variety-specific minimum size requirements 
for seven varieties of peaches whose shipments fell below 5,000 
containers during the 2006 season.
    For example, one of the varieties recommended for addition to the 
variety-specific minimum size requirements is the May Snow variety of 
peaches, which was recommended for regulation at a minimum size 88. 
Studies of the size ranges attained by the May Snow variety revealed 
that 97.8 percent of the containers met the minimum size of 88 during 
the 2005 and 2006 seasons. The sizes ranged from size 40 to size 88, 
with 11.6 percent of the containers meeting the size 40, 19.2 percent 
meeting the size 50, 45.7 percent meeting the size 60, 15.1 percent 
meeting the size 70, 3.4 percent meeting the size 80, 2.3 percent 
meeting the size 84, and 0.5 percent meeting the size 88 in the 2006 
season.
    A review of other varieties with the same harvesting period 
indicated that the May Snow 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 the harvesting period, as well. Thus, the 
recommendation to place the May Snow variety in the variety-specific 
minimum size regulation at a minimum size 88 is appropriate.
    Historical data such as this provides the committee 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 committee meetings when the staff receives such 
comments, either in writing or verbally.
    For reasons similar to those discussed in the preceding paragraph, 
paragraph (a)(2) of Sec.  917.459 is revised to include the Snow Angel 
peach variety; paragraph (a)(3) of Sec.  917.459 is revised to include 
the May Snow peach variety; paragraph (a)(4) of Sec.  917.459 is 
revised to include the May Saturn (Early Saturn) peach variety; 
paragraph (a)(5) of Sec.  917.459 is revised to include the Candy Red, 
Raspberry, and Sugar Jewel peach varieties; and paragraph (a)(6) of 
Sec.  917.459 is revised to include the Burpeachfifteen (Summer 
Flame[supreg] 34), Burpeachsixteen, Burpeachtwenty (Summer 
Flame[supreg]), Galaxy, and Snow Magic peach varieties.
    Section (a)(4) is currently reserved for any varieties which will 
be regulated at a size 84. The May Saturn (Early Saturn) variety, as 
noted above, will be regulated at size 84 under (a)(4).
    This rule also revises paragraph (a)(5) of Sec.  917.459 to remove 
the May Sun and Snow Prince peach varieties and paragraph (a)(6) of 
Sec.  917.459 to remove the 24-SB, Crimson Queen, Jupiter, Red Giant, 
and Spring Gem peach varieties from the variety-specific minimum size 
requirements because less than 5,000 containers of each of these 
varieties was produced during the 2006 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 committees 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.

Reporting Requirements

    Sections 916.60 and 917.50 of the orders authorize the 
establishment of reporting requirements for nectarines and peaches, 
respectively. Currently, under sections 916.160, 917.178, and 917.179, 
handlers are required to file certain reports pertaining to daily 
packouts, annual shipments, and shipment destinations. The collection 
and dissemination of statistical information has been a valuable 
component of the programs, as it provides growers and handlers with 
information which enhances their decision-making ability.
    As previously discussed, a State marketing program has recently 
been implemented for the California peach and nectarine industries, 
which include the collection and dissemination of statistical 
information. Accordingly, there is no longer a need to require these 
handler reports under the orders. Therefore, at their February 9, 2007, 
meetings, the committees recommended removing current handler reporting 
requirements, beginning with the 2007 season. The committees have 
implemented a memorandum of understanding to share information with the 
new State marketing order, so information collected by the State 
program can be utilized by the committees.
    This rule removes reporting requirements in Sec.  916.160 for 
nectarines and Sec. Sec.  917.178 and 917.179 for peaches. This action 
should reduce handler costs under the orders.
    This rule reflects the need to revise the handling and reporting 
requirements for California nectarines and peaches. This rule is 
intended primarily to reduce costs and should therefore have a 
beneficial impact on producers, handlers, and consumers of fresh 
California nectarines and peaches. This rule is also intended to 
maintain the perceived value of the ``California well matured'' 
certification mark by maintaining current grade, size, quality, pack, 
container and inspection requirements on fruit packed and labeled as 
``California Well Matured'' or ``CA WELL MAT.''

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.

Industry Information

    There are approximately 175 California nectarine and peach handlers 
subject to regulation under the orders covering nectarines and peaches 
grown in California, and about 676 producers of these fruits in 
California. Small agricultural service firms, which include handlers, 
are defined by the Small Business Administration (SBA) (13 CFR 121.201) 
as those whose annual receipts are less than $6,500,000. Small 
agricultural producers are defined by the SBA 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 fewer than 26 
handlers in the industry who would not be considered small entities. 
For the 2006 season, the committees' staff estimated that the average 
handler price received

[[Page 18851]]

was $9.00 per container or container equivalent of nectarines or 
peaches. A handler would have to ship at least 722,223 containers to 
have annual receipts of $6,500,000. Given data on shipments maintained 
by the committees' staff and the average handler price received during 
the 2006 season, the committees' staff estimates that small handlers 
represent approximately 85 percent of all the handlers within the 
industry.
    The committees' staff has also estimated that fewer than 68 
producers in the industry would not be considered small entities. For 
the 2006 season, the committees estimated the average producer price 
received was $4.50 per container or container equivalent for nectarines 
and peaches. A producer would have to produce at least 166,667 
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 2006 season, the committees' 
staff estimates that small producers represent more than 90 percent of 
the producers within the industry.
    With an average producer price of $4.50 per container or container 
equivalent, and a combined packout of nectarines and peaches of 
36,388,996 containers, the value of the 2006 packout is estimated to be 
$163,750,482. Dividing this total estimated grower revenue figure by 
the estimated number of producers (676) yields an estimate of average 
revenue per producer of about $242,234 from the sales of peaches and 
nectarines.

Regulatory Revisions

    Under authority provided in Sec. Sec.  916.52 and 917.41 of the 
orders, grade, size, maturity, pack, and container marking requirements 
are established for fresh shipments of California nectarines and 
peaches, respectively. Such requirements are in effect on a continuing 
basis. The committees met on February 9, 2007, and unanimously 
recommended that these handling requirements be revised for the 2007 
season. This rule: (1) Eliminates grade, size, maturity, pack, 
container and inspection requirements for all California nectarines and 
peaches except those packed in containers labeled ``California Well 
Matured'' or ``CA WELL MAT''; (2) Makes seasonal adjustments to the 
handling requirements applicable to California Well Matured fruit; and 
(3) Removes certain handler reporting requirements that are deemed no 
longer necessary.

Container and Pack Requirements--Discussions and Alternatives

    Sections 916.350 and 917.442 establish container and pack 
requirements. The committees discussed removing all handling 
regulations under the Federal orders, including inspection 
requirements. However, the industry believes that buyers value the 
committees' ``CA WELL MAT'' mark as an indicator of high quality and 
may be willing to pay a premium price for fruit marked as such. 
Accordingly, they decided to maintain current grade, quality, maturity, 
size container, pack and inspection requirements for ``well matured'' 
fruit. The committees, thus, recommended revising the handling 
regulations to cover only nectarines and peaches packed in containers 
marked ``CA WELL MAT'' or ``California Well Matured''.

Lot Stamping Requirements--Discussions and Alternatives

    Sections 916.115 and 917.150 establish lot stamping requirements. 
This rule revises lot stamping requirements to require such markings 
only on containers labeled ``CA WELL MAT'' or ``California Well 
Matured''. An alternative would be to leave the existing lot stamping 
requirements unchanged, but the requirements would not be consistent 
with the other recommended changes and would result in unnecessary 
expenses for industry handlers. Based on this, the committees 
recommended revising lot stamping requirements to require such markings 
only on containers labeled ``CA WELL MAT'' or ``California Well 
Matured.''

Weight Marking Requirements--Discussions and Alternatives

    Sections 916.350 and 917.442 also establish weight marking 
requirements for nectarines and peaches packed in Euro type volume-
filled containers. These require each five down Euro container of 
loose-filled nectarines or peaches to be marked with the words ``29 
pounds net weight''.
    In the past, handlers' sales to their retail customers have been 
based on set net weights for most pack styles. With the changing 
marketing environment, some retailers want volume-filled pack styles 
that have the same net weight as tray pack styles, especially for the 
Euro type containers.
    Handlers either respond to the requests of the retailers or risk 
losing business from those retailers. The committees agreed that weight 
markings are no longer necessary; and, in turn, at their February 9, 
2007, meetings recommended eliminating the Euro type container weight 
marking requirement.
    Without the weight marking requirements, nectarines and peaches 
packed in Euro style volume-filled containers can be packed to the 
buyers' preferences. The committees believe that the elimination of 
marking requirements will satisfy the stated needs of retailers and 
will open additional market opportunities for the industry.

Grade and Quality Requirements--Discussions and Alternatives

    Sections 916.356 and 917.459 establish minimum grade and quality 
requirements. The NAC and PCC previously discussed removing all 
handling regulations under the orders in favor of regulations under the 
newly-promulgated State marketing order. However, the industry still 
wanted to retain quality standards for fruit marketed as ``CA WELL 
MAT'', a term which has value to buyers and the industry. One 
alternative the committees discussed was to allow handlers to use the 
mark under a licensing agreement with CTFA. Taking into account 
enforcement concerns, this approach was viewed as not feasible.
    At their February 9, 2007, meetings, the committees recommended 
revising the grade and quality requirements to apply only to nectarines 
and peaches packed in containers marked ``CA WELL MAT'' or ``California 
Well Matured'' beginning with the 2007 season. This action will ensure 
that fruit packed in containers marked ``CA WELL MAT'' or ``California 
Well Matured'' continues to be inspected and meet applicable grade and 
quality requirements. For this reason, the committees unanimously 
recommended the revisions and believe that they will help accomplish 
the goals of the industry.

Minimum Maturity and Size Requirements--Discussions and Alternatives

    Sections 916.356 and 917.459 establish minimum fruit maturity 
levels. This rule makes adjustments to the maturity requirements for 
several varieties of nectarines and peaches. Maturity requirements are 
based on measurements suggested by maturity guides (e.g., color chips), 
as reviewed and recommended by the Inspection Service annually 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 observed during 
previous seasons' inspections. Adjustments in the

[[Page 18852]]

guides utilized ensure acceptable fruit maturity and increased consumer 
satisfaction while benefiting nectarine and peach producers and 
handlers.
    Sections 916.356 and 917.459 of the orders' rules and regulations 
also specify minimum sizes for various varieties of nectarines and 
peaches. This rule makes adjustments to the minimum sizes authorized 
for certain varieties of each commodity for the 2007 season. Minimum 
size regulations are put in place to encourage producers to leave fruit 
on the trees for a longer period of time, increasing both maturity and 
fruit size. Increased fruit size increases the number of packed 
containers per acre, and coupled with heightened maturity levels, also 
provides greater consumer satisfaction, which in turn fosters repeat 
purchases that benefit producers and handlers alike.
    Annual adjustments to minimum sizes of nectarines and peaches, such 
as these, are recommended by 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' past 
practices and represent a significant change in the regulations as they 
currently exist. For these reasons, this alternative was not 
recommended.
    Sections 916.356 and 917.459 of the orders' rules and regulations 
also specify size requirements for handlers of late season nectarine 
and peach varieties wishing to pack smaller sized fruit as long as the 
fruit was ``well matured.'' Since only containers marked ``CA WELL 
MAT'' or ``California Well Matured'' will be subject to minimum size 
requirements, this rule also revises the size regulations to remove 
these obsolete size options.

Reporting Requirements--Discussions and Alternatives

    Sections 916.160 and 917.178 establish reporting requirements for 
nectarine and peach handlers, respectively. Similar reporting 
requirements have been established under the newly-implemented 
California State marketing program. Accordingly, collection of this 
information under the Federal orders is no longer necessary. The 
committees have implemented a memorandum of understanding to share 
information with the new State marketing order, so information 
collected by the State program can be utilized by the committees. An 
alternative would be to maintain the reporting requirements, but this 
would result in an unnecessary reporting burden. For this reason, the 
removal of reporting requirements was unanimously recommended by both 
committees.
    The committees make recommendations regarding the revisions in 
handling and reporting requirements after considering all available 
information, including comments received by committee staff. At the 
meetings, the impact of and alternatives to these recommendations are 
deliberated. The committees consist of individual producers and 
handlers with many years of experience in the industry who are familiar 
with industry practices and trends. All committee meetings are open to 
the public and comments are widely solicited. In addition, minutes of 
all meetings are distributed to committee members and others who have 
requested them, and are also available on the committees' Web site, 
thereby increasing the availability of this critical information within 
the industry.
    Regarding the impact of this action on the affected entities, each 
of the recommended changes is expected to generate financial benefits 
for producers and handlers through reduced costs and increased fruit 
sales. Both large and small entities are expected to benefit from the 
changes, and the costs of compliance are not expected to be 
significantly different between large and small entities.
    This rule reduces reporting and recordkeeping requirements on both 
small and large nectarine and peach handlers regulated under the 
orders. 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.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the information collection requirements being removed by 
this rule are currently approved by the Office of Management and Budget 
(OMB), under OMB No. 0581-0189, Generic OMB Fruit Crops. Removal of the 
reporting requirements under Parts 916 and 917 is expected to reduce 
the reporting burden on small or large peach and nectarine handlers by 
370 hours, and should further reduce industry expenses.
    The 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.
    In addition, USDA has not identified any relevant Federal rules 
that duplicate, overlap, or conflict with this rule.
    Further, 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 in the fall, winter, and 
spring. During the February 9, 2007, meetings, all entities, large and 
small, were encouraged to express views on these issues. 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: https://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 and reporting 
requirements currently prescribed under the marketing orders for 
California fresh nectarines and peaches. Any comments received will be 
considered prior to finalization of this rule.
    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. With 
regard to revision to the rules and regulations under the order and 
concerning those provisions that are removed or terminated, it is found 
that those provisions no longer 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) This rule should be implemented as soon 
as possible, since shipments of California nectarines and peaches are 
expected to begin in early April; (2) this rule relaxes handling and 
reporting requirements for nectarines and peaches; (3) the committees 
met and unanimously recommended these changes at public meetings, and

[[Page 18853]]

interested persons had opportunities to provide input at all those 
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 marked ``CA 
WELL MAT'' or ``California Well Matured'', 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 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 916.160 is removed.

0
4. Section 916.350 is amended by:
0
a. Revising paragraph (a) introductory text;
0
b. Revising paragraph (a)(3);
0
c. Removing paragraph (a)(8); and
0
d. Redesignating current paragraphs (a)(9) through (a)(11) as (a)(8) 
through (a)(10) to read as follows:


Sec.  916.350  California nectarine container and pack regulation.

    (a) During the period beginning April 1 and ending October 31, no 
handler shall ship any package or container of any variety of 
nectarines marked ``CA WELL MAT'' or ``California Well Matured'' except 
in accordance with the following terms and conditions:
* * * * *
    (3) Each package or container of nectarines bearing the words 
``California Well Matured'' or ``CA WELL MAT'' shall be well matured as 
defined in Sec.  916.356.
* * * * *

0
5. Section 916.356 is amended by:
0
a. Revising paragraph (a) introductory text;
0
b. Revising paragraph (a)(1) introductory text;
0
c. Revising Table 1 of paragraph (a)(1)(iv) (excluding the note 
following the table);
0
d. Revising the introductory text of paragraphs (a)(3), (a)(4), and 
(a)(6)
0
e. Revising paragraphs (a)(6)(i) and (a)(6)(ii); and
0
f. Revising paragraphs (a)(9)(i) and (a)(9)(ii) to read as follows:


Sec.  916.356  California nectarine grade and size regulation.

    (a) During the period beginning April 1 and ending October 31, no 
handler shall ship any package or container of any variety of 
nectarines marked ``CA WELL MAT'' or ``California Well Matured'' except 
in accordance with the following terms and conditions:
    (1) Any lot or package or container of any variety of nectarines 
shall 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 nectarines of the Peento type shall be permitted blossom 
end cracking that is well healed and does not exceed the aggregate area 
of a circle \3/8\ inch in diameter, and/or does not exceed a depth that 
exposes the pit: Provided further, That 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 well mature and are:
* * * * *
    (iv) * * *

                                 Table 1
------------------------------------------------------------------------
              Column A variety                 Column B maturity guide
------------------------------------------------------------------------
Alshir Red.................................  J
Alta Red...................................  J
April Glo..................................  H
August Fire................................  L
August Glo.................................  L
August Lion................................  J
August Red.................................  J
Aurelio Grand..............................  F
Autumn Delight.............................  L
Big Jim....................................  J
Burnectone (Spring Ray[supreg])............  L
Burnectseven (Summer Flare[supreg] 28).....  J
Burnectten (Spring Flare[supreg] 19).......  H
Burnecttwelve (Sweet Flare[supreg] 21).....  I
Candy Gold.................................  L
Crimson Baby...............................  G
Diamond Bright.............................  J
Diamond Jewel..............................  L
Diamond Ray................................  L
Earliglo...................................  I
Early Diamond..............................  J
Early Red Jim..............................  J
Early Sungrand.............................  H
Emelia.....................................  J
Fairlane...................................  L
Fantasia...................................  J
Firebrite..................................  H
Fire Sweet.................................  J
Flame Glo..................................  L
Flamekist..................................  L
Flaming Red................................  K
Flavortop..................................  J
Gee Sweet..................................  L
Grand Candy................................  J
Grand Diamond..............................  L
Grand Sweet................................  J
Gran Sun...................................  L
Honey Blaze................................  J
Honey Dew..................................  B *
Honey Fire.................................  L
Honey Kist.................................  I
Honey Royale...............................  J
July Red...................................  L
June Brite.................................  I
June Candy.................................  K
Juneglo....................................  H
Kay Diamond................................  L
Kay Glo....................................  J
Kay Sweet..................................  J
King Jim...................................  L
Kism Grand.................................  J
Larry's Red................................  J
Late Le Grand..............................  L
Late Red Jim...............................  J
Mango......................................  B *
May Diamond................................  I
May Fire...................................  H
Mayglo.....................................  H
May Grand..................................  H

[[Page 18854]]

 
May Kist...................................  H
Mid Glo....................................  L
Moon Grand.................................  L
Niagra Grand...............................  H
P-R Red....................................  L
Prince Jim.................................  L
Prince Jim I...............................  L
Prima Diamond VII..........................  L
Prima Diamond XIII.........................  L
Prima Diamond XIX..........................  L
Red Delight................................  I
Red Diamond................................  L
Red Fred...................................  J
Red Free...................................  L
Red Glen...................................  J
Red Glo....................................  I
Red Jewel..................................  L
Red Jim....................................  L
Red May....................................  J
Red Roy....................................  J
Regal Red..................................  K
Rio Red....................................  L
Rose Diamond...............................  J
Royal Giant................................  I
Royal Glo..................................  I
Ruby Diamond...............................  L
Ruby Fire..................................  G
Ruby Grand.................................  J
Ruby Sun...................................  J
Ruby Sweet.................................  J
Scarlet Red................................  K
September Bright...........................  J
September Free.............................  J
September Grand............................  L
September Red..............................  L
Shay Sweet.................................  J
Sheri Red..................................  J
Sparkling June.............................  L
Sparkling May..............................  J
Sparkling Red..............................  L
Spring Bright..............................  L
Spring Diamond.............................  L
Spring Red.................................  H
Spring Sweet...............................  J
Star Brite.................................  J
Sugar Queen................................  L
Summer Beaut...............................  H
Summer Blush...............................  J
Summer Bright..............................  J
Summer Diamond.............................  L
Summer Fire................................  L
Summer Grand...............................  L
Summer Jewel...............................  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
WF 1.......................................  J
Zee Fire...................................  J
Zee Glo....................................  J
Zee Grand..................................  I
------------------------------------------------------------------------
* Predominant ground color must be breaking yellowish green.

* * * * *
    (3) Any package or container of Mayglo variety of nectarines on or 
after May 6 of each year, or Burnectfive (Spring Flare[supreg] 21), 
Burnectten (Spring Flare[supreg] 19), Crimson Baby, Earliglo, Red Jewel 
or Zee Fire variety nectarines unless:
* * * * *
    (4) Any package or container of Arctic Star, Burnectone (Spring 
Ray[supreg]), Burnecttwelve (Sweet Flair[supreg] 21), Diamond Bright, 
Diamond Pearl, Early Pearl, Gee Sweet, June Pearl, Kay Fire, Kay Glo, 
Kay Sweet, Prima Diamond IV, Prima Diamond VI, Prima Diamond XIII, 
Prince Jim, Prince Jim 1, Red Roy, Rose Bright, Rose Diamond, Royal 
Glo, or Zee Grand variety nectarines unless:
* * * * *
    (6) Any package or container of Alta Red, Arctic Belle, Arctic 
Blaze, Arctic Gold, Arctic Ice, Arctic Jay, Arctic Mist, Arctic Pride, 
Arctic Queen, Arctic Snow (White Jewel), Arctic Sweet, August Bright, 
August Fire, August Glo, August Lion, August Pearl, August Red, August 
Snow, August Sweet, Autumn Blaze, Big Jim, Bright Pearl, Burnectfour 
(Summer Flare[reg] 35), Burnectseven (Summer 
Flare[reg] 28), Burnectseventeen (Summer 
Flare[reg] 32), Candy Gold, Candy Pearl, Diamond Ray, Early 
Red Jim, Fire Pearl, Fire Sweet, Flaming Red, Giant Pearl, Grand Candy, 
Grand Pearl, Grand Sweet, Honey Blaze, Honey Dew, Honey Diva, Honey 
Fire, Honey Kist, Honey Royale, July Pearl, July Red, Kay Pearl, La 
Pinta, Larry's Red, Late Red Jim, Mike's Red, P-R Red, Prima Diamond 
VII, Prima Diamond IX, Prima Diamond X, Prima Diamond XVIII, Prima 
Diamond XIX, Prima Diamond XXIV, Prima Diamond XXVIII, Prince Jim 3, 
Red Diamond, Red Glen, Red Jim, Red Pearl, Regal Pearl, Regal Red, 
Royal Giant, Ruby Diamond, Ruby Pearl, Ruby Sweet, September Bright 
(26P-490), September Free, September Red, Sparkling June, Sparkling 
Red, Spring Bright, Spring Pearl\TM\, Spring Sweet, Sugarine, Summer 
Blush, Summer Bright, Summer Diamond, Summer Fire, Summer Grand, Summer 
Jewel, Summer Lion, Summer Red, Sunburst, Sun Valley Sweet, Terra 
White, Zee Glo or Zephyr variety nectarines unless:
    (i) Such nectarines, when packed in molded forms (tray packs) in a 
No. 22D standard lug box or a No. 32 standard box, are of a size that 
will pack, in accordance with the requirements of a standard pack, not 
more than 84 nectarines in the box; or
    (ii) Such nectarines, when packed other than as specified in 
paragraph (a)(6)(i) of this section, are of a size that a 16-pound 
sample, representative of the nectarines in the package or container, 
contains not more than 76 nectarines, except for Peento-type 
nectarines.
* * * * *
    (9) * * *
    (i) Such nectarines, when packed in molded forms (tray packs) in a 
No. 22D standard lug box or a No. 32 standard box, are of a size that 
will pack, in accordance with the requirements of a standard pack, not 
more than 84 nectarines in the box; or
    (ii) Such nectarines, when packed other than as specified in 
paragraph (a)(9)(i) of this section, are of a size that a 16-pound 
sample, representative of the nectarines in the package or container, 
contains not more than 76 nectarines, except for Peento-type 
nectarines.
* * * * *

PART 917--FRESH PEARS AND PEACHES GROWN IN CALIFORNIA

0
6. 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 marked ``CA WELL 
MAT'' or ``California Well Matured'', 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 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.


Sec.  917.178  [Removed]

0
7. Section 917.178 is removed.


Sec.  917.179  [Amended]

0
8. In Sec.  917.179, the suspension of March 3, 1994 (59 FR 10056), is 
lifted.


Sec.  917.179  [Removed]

0
9. Section 917.179 is removed.
0
10. Section 917.442 is amended by:
0
a. Revising paragraph (a) introductory text;
0
b. Revising paragraph (a)(3);
0
c. Removing paragraph (a)(9); and
0
d. Redesignating current paragraphs (a)(10) through (a)(12) as (a)(9) 
through (a)(11) to read as follows:

[[Page 18855]]

Sec.  917.442  California peach container and pack regulation.

    (a) During the period beginning April 1 and ending November 23, no 
handler shall ship any package or container of any variety of peaches 
marked ``CA WELL MAT'' or ``California Well Matured'' except in 
accordance with the following terms and conditions:
* * * * *
    (3) Each package or container of peaches bearing the words 
``California Well Matured'' or ``CA WELL MAT'' shall be well matured as 
defined in Sec.  917.459.
* * * * *

0
11. Section 917.459 is amended by:
0
a. Revising paragraph (a) introductory text;
0
b. Revising paragraph (a)(1) introductory text;
0
c. Revising Table 1 of paragraph (a)(1)(iv) (excluding the note 
following the table);
0
d. Revising the introductory text of paragraphs (a)(2), (a)(3), (a)(4), 
(a)(5) and (a)(6); and
0
e. Revising paragraphs (a)(6)(i) and (a)(6)(iii) to read as follows:


Sec.  917.459  California peach grade and size regulation.

    (a) During the period beginning April 1 and ending November 23, no 
handler shall ship any package or container of any variety of peaches 
marked ``CA WELL MAT'' or ``California Well Matured'' except in 
accordance with the following terms and conditions:
    (1) Any lot or package or container of any variety of peaches shall 
meet the following 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 blossom end cracking 
that is well healed and does not exceed the aggregate area of a circle 
\3/8\ inch in diameter, and/or does not exceed a depth that exposes the 
pit; Provided further, That 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 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 Peaches; and that such 
peaches are well mature and are:
* * * * *
    (iv) * * *

                                 Table 1
------------------------------------------------------------------------
              Column A variety                 Column B maturity guide
------------------------------------------------------------------------
Angelus....................................  I
August Dream...............................  J
August Lady................................  L
Autumn Flame...............................  J
Autumn Gem.................................  I
Autumn Lady................................  H
Autumn Red.................................  J
Autumn Rose................................  H
Bev's Red..................................  I
Blum's Beauty..............................  G
Bright Princess............................  L
Brittney Lane..............................  J
Burpeachfive (July Flame[supreg])..........  L
Burpeachfourteen (Spring Flame[supreg] 20).  J
Burpeachone (Spring Flame[supreg] 21)......  J
Burpeachsix (June Flame[supreg])...........  L
Burpeachthree (September Flame[supreg])....  I
Burpeachtwo (Henry II[supreg]).............  J
Cal Red....................................  I
Candy Red..................................  J
Carnival...................................  I
Cassie.....................................  H
Coronet....................................  E
Crimson Lady...............................  J
Crown Princess.............................  J
Country Sweet..............................  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 Joy.................................  H
Flavor Queen...............................  H
Flavor Red.................................  G
Franciscan.................................  G
Goldcrest..................................  H
Golden Princess............................  L
Henry III..................................  J
Honey Red..................................  G
Island Princess...........