National Organic Program (NOP)-Amendments to the National List of Allowed and Prohibited Substances (Processing), 35137-35141 [07-3142]

Download as PDF 35137 Rules and Regulations Federal Register Vol. 72, No. 123 Wednesday, June 27, 2007 This section of the FEDERAL REGISTER contains regulatory documents having general applicability and legal effect, most of which are keyed to and codified in the Code of Federal Regulations, which is published under 50 titles pursuant to 44 U.S.C. 1510. The Code of Federal Regulations is sold by the Superintendent of Documents. Prices of new books are listed in the first FEDERAL REGISTER issue of each week. DEPARTMENT OF AGRICULTURE Agricultural Marketing Service 7 CFR Part 205 [Docket No. AMS–TM–07–0062; TM–07– 06IF] RIN 0581–AC71 National Organic Program (NOP)— Amendments to the National List of Allowed and Prohibited Substances (Processing) Agricultural Marketing Service, USDA. ACTION: Interim final rule with requests for comments. pwalker on PROD1PC71 with RULES AGENCY: SUMMARY: This Interim final rule amends the Department of Agriculture’s (USDA) National List of Allowed and Prohibited Substances (National List) regulations to enact 38 recommendations submitted to the Secretary of Agriculture (Secretary) by the National Organic Standards Board (NOSB) during public meetings held May 6–8, 2002, in Austin, Texas, and March 27–29, 2007, in Washington, DC. This action is also being taken to provide an additional 60 days for the public to comment on these 38 amendments to the National List. DATES: Effective Dates: This interim final rule becomes effective June 21, 2007. All comments received by August 27, 2007 will be considered prior to the issuance of the final rule. ADDRESSES: Interested persons may comment on this interim final rule using any of the following procedures: • Mail: Comments may be submitted by mail to Robert Pooler, Agricultural Marketing Specialist, National Organic Program, USDA/AMS/TMP/NOP, 1400 Independence Ave., SW., Room 4008– So., Ag Stop 0268, Washington, DC 20250. • Internet: www.regulations.gov. VerDate Aug<31>2005 18:11 Jun 26, 2007 Jkt 211001 • Written comments on this interim final rule should be identified with the docket number AMS–TM–07–0062. Commenters should identify the topic and section number of this interim final rule to which the comment refers. • Clearly indicate if you are for or against the interim final rule or some portion of it and your reason for it. Include recommendation changes as appropriate. • Include a copy of articles or other references that support your comments. Only relevant material should be submitted. All comments to this interim final rule, submitted by the above procedures, will be available for viewing at: www.regulations.gov. Comments submitted in response to this interim final rule will also be available for viewing in person at USDA–AMS, Transportation and Marketing, National Organic Program, Room 4008—South Building, 1400 Independence Ave., SW., Washington, DC, from 9 a.m. to 12 noon and from 1 p.m. to 4 p.m., Monday through Friday, (except on official Federal holidays). Persons wanting to view comments received in response to this interim final rule are requested to make an appointment in advance by calling (202) 720–3252. FOR FURTHER INFORMATION CONTACT: Robert Pooler, Agricultural Marketing Specialist, National Organic Program, USDA/AMS/TM/NOP, Room 4008–So., Ag Stop 0268, 1400 Independence Ave., SW., Washington, DC 20250. Phone: (202) 720–3252. SUPPLEMENTARY INFORMATION: I. Background The Organic Foods Production Act of 1990 (OFPA), as amended, (7 U.S.C. 6501 et seq.), authorizes the establishment of the NOP regulations. On December 21, 2000, the Secretary established, within the NOP (7 CFR part 205), the National List regulations §§ 205.600 through 205.607. This National List identifies the synthetic substances that may be used and the non-synthetic substances that may not be used in organic production. The National List also identifies synthetic, non-synthetic non-agricultural and nonorganic agricultural substances that may be used in organic handling. The OFPA and NOP regulations, in § 205.105, specifically prohibit the use of any synthetic substance for organic PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 production and handling unless the synthetic substance is on the National List. Section 205.105 also requires that any non-organic agricultural, nonsynthetic non-agricultural substance used in organic handling must also be on the National List. Until recently, some producers, handlers and certifying agents have misinterpreted National List regulations § 205.606 to mean that any non-organic agricultural product which was determined by an accredited certifying agent to be not commercially available in organic form could be used in organic products, without being individually listed pursuant to the National List procedures. In January 2005, the First Circuit Court of Appeal’s decision in Harvey v. Johanns found that such an interpretation is contrary to the plain meaning of the OFPA and held that 7 CFR 205.606 shall not be interpreted to create a blanket exemption to the National List requirements specified in §§ 6517 and 6518 of the OFPA (7 U.S.C. 6517–6518). Therefore, consistent with the district court’s final judgment and order, dated June 9, 2005, on July 1, 2005, the NOP published a notice regarding § 205.606 (70 FR 38090), and on June 7, 2006, published a final rule (71 FR 32803) revising § 205.606 to clarify that the section shall be interpreted to permit the use of a nonorganically produced agricultural product only when the product has been listed in § 205.606, and when an accredited certifying agent has determined that the organic form of the agricultural product is not commercially available. In order to enable an orderly transition, the district court’s final judgment and order allowed for products produced in conformance with the misinterpretation of § 205.606 to be produced and sold until June 9, 2007, after which point no non-conforming products may enter the stream of commerce. As a result, since June 9, 2007, any certified products that have been produced and entered into the stream of commerce using non-organic agricultural ingredients that are not listed in § 205.606 are in noncompliance with the district court’s final order and judgment on Harvey v. Johanns. Concerning organic products that contain no more than 5% non-organic agricultural ingredients that do not appear on the National List, such E:\FR\FM\27JNR1.SGM 27JNR1 35138 Federal Register / Vol. 72, No. 123 / Wednesday, June 27, 2007 / Rules and Regulations products that have been produced and labeled as organic prior to June 9, 2007, are considered to be in the stream of commerce. ‘‘Organic’’ products that meet this description may remain in the marketplace as organically produced until the existing supply is exhausted. On May 15, 2007, USDA published a proposed rule (72 FR 27252) to amend the National List regulations to enact recommendations submitted to the Secretary by the NOSB as a result of public meetings held on May 6–8, 2002, in Austin, TX, and March 27–29, 2007, in Washington, DC. This proposed rule suggested the addition of 38 non-organic agricultural ingredients, along with any restrictive annotations, to the National List regulations. The 38 ingredients proposed for addition to the National List were based on petitions from the industry, in response to the potential impact of the district court’s final order and judgment concerning changes to § 205.606 of the NOP regulations. NOP and NOSB received approximately 99 petitions to add more than 600 non-organic agricultural ingredients and substances to § 205.606 of the National List regulations. After Program review for adequate petition information, 79 petitions to add 52 substances to the National List were forwarded through the petition review process to the NOSB Materials and Handling Committees for review and evaluation against the OFPA criteria and NOP regulations. Prior to the respective public NOSB meetings, 52 draft recommendations from the NOSB committees were posted on the NOP Web site for review and public comment. Of the 52 petitioned ingredients, the NOSB, for their March 2007 meeting, requested, received, and reviewed public comments on the petitioned ingredients and voted to add 38 ingredients to § 205.606 of the National List. Under the authority of OFPA and the NOP regulations, the National List can be amended by the Secretary based upon recommendations by the NOSB. II. Overview of Amendments pwalker on PROD1PC71 with RULES The following provides an overview of the amendments to designated sections of the National List regulations. Color Ingredients From Agricultural Products Annatto extract color (pigment CAS # 1393–63–1)—water and oil soluble. Beet juice extract color (pigment CAS # 7659–95–2). Beta-Carotene extract color from carrots (CAS # 1393–63–1). Black currant juice color (pigment CAS #’s: 528–58–5, 528–53–0, 643–84– 5, 134–01–0, 1429–30–7, and 134–04– 3). Black/Purple carrot juice color (pigment CAS #’s: 528–58–5, 528–53–0, 643–84–5, 134–01–0, 1429–30–7, and 134–04–3). Blueberry juice color (pigment CAS #’s: 528–58–5, 528–53–0, 643–84–5, 134–01–0, 1429–30–7, and 134–04–3). Carrot juice color (pigment CAS # 1393–63–1). Cherry juice color (pigment CAS #’s: 528–58–5, 528–53–0, 643–84–5, 134– 01–0, 1429–30–7, and 134–04–3). Chokeberry—Aronia juice color (pigment CAS #’s: 528–58–5, 528–53–0, 643–84–5, 134–01–0, 1429–30–7, and 134–04–3). Elderberry juice color (pigment CAS #’s: 528–58–5, 528–53–0, 643–84–5, 134–01–0, 1429–30–7, and 134–04–3). Grape juice color (pigment CAS #’s: 528–58–5, 528–53–0, 643–84–5, 134– 01–0, 1429–30–7, and 134–04–3). Grape skin extract color (pigment CAS #’s: 528–58–5, 528–53–0, 643–84–5, 134–01–0, 1429–30–7, and 134–04–3). Paprika color—dried powder and vegetable oil extract (CAS # 68917–78– 2). Pumpkin juice color (pigment CAS # 127–40–2). Purple potato juice color (pigment CAS #’s: 528–58–5, 528–53–0, 643–84– 5, 134–01–0, 1429–30–7, and 134–04– 3). Red cabbage extract color (pigment CAS #’s: 528–58–5, 528–53–0, 643–84– 5, 134–01–0, 1429–30–7, and 134–04– 3). Red radish extract color (pigment CAS #’s: 528–58–5, 528–53–0, 643–84–5, 134–01–0, 1429–30–7, and 134–04–3). Saffron extract color (pigment CAS # 1393–63–1). Turmeric extract color (CAS # 458– 37–7). Ingredients or Processing Aids From Agricultural Products Casings, from processed intestines (no Section 205.606 Nonorganically Produced Agricultural Products Allowed CAS #). Celery powder (No CAS #). as Ingredients in or on Processed Chia (Salvia hispanica L.) (no CAS #). Products Labeled as ‘‘Organic’’ Dillweed oil (CAS # 8006–75–5). This interim final rule amends Fish oil (Fatty acid CAS #’s: 10417– § 205.606 of the National List 94–4, and 25167–62–8). regulations by adding the following Fructooligosaccharides (CAS substances: # 308066–66–2). VerDate Aug<31>2005 18:11 Jun 26, 2007 Jkt 211001 PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 Galangal, frozen (no CAS #). Gelatin (CAS # 9000–70–8). Hops (Humulus lupulus) (no CAS #). Inulin, oligofructose enriched (CAS # 9005–80–5). Konjac flour (CAS # 37220–17–0). Lemongrass, frozen (no CAS #). Orange shellac, unbleached (CAS # 9000–59–3). Pepper, chipotle chile (no CAS #). Rice starch, unmodified (CAS # 977000–08–0)—for use in organic handling until [two years from date of publication]. Sweet potato starch, for bean thread production only (no CAS #). Turkish bay leaves (no CAS #). Wakame seaweed (Undaria pinnatifida) (no CAS #). Whey protein concentrate (no CAS #). III. Related Documents—Federal Register Notices Two notices and one proposed rule (72 FR 27252) were published regarding the meetings of the NOSB and its deliberations on recommendations and substances petitioned for amending the National List. Substances and recommendations included in this interim final rule were announced for NOSB deliberation in the following Federal Register Notices: (1) 67 FR 19375, April 19, 2002, (Gelatin, Konjac flour, Orange shellac); (2) 72 FR 10971, March 12, 2007, (Casings, Celery powder, Chia (Salvia hispanica L.), Colors—from agricultural products: Annatto extract; Beet juice; Betacarotene extract; Purple carrot juice; Black currant juice; Blueberry juice; Carrot juice; Cherry juice; Chokeberry/ Aronia juice; Elderberry juice; Grape juice; Grape skin extract; Paprika; Pumpkin juice; Purple potato juice; Red cabbage extract; Red radish extract; Saffron; Turmeric; Dillweed oil, Fish oil, Fructooligosaccharides, Galangal— frozen, Hops, Inulin—oligofructose enriched, Lemongrass—frozen, Pepper—chipotle chile, Rice starch, Sweet potato starch, Turkish bay leaves, Wakame seaweed (Undaria pinnatifida), and Whey protein concentrate). IV. Statutory and Regulatory Authority The OFPA, as amended (7 U.S.C. 6501 et seq.), authorizes the Secretary to make amendments to the National List based on recommendations by the NOSB. Sections 6518(k)(2) and 6518(n) of OFPA authorize the NOSB to recommend changes to the National List for submission to the Secretary and establish a petition process by which persons may petition the NOSB for the purpose of having substances evaluated for inclusion on or deletion from the National List. The National List petition E:\FR\FM\27JNR1.SGM 27JNR1 Federal Register / Vol. 72, No. 123 / Wednesday, June 27, 2007 / Rules and Regulations process is implemented under § 205.607 of the NOP regulations. The current petition process (72 FR 2167 January 18, 2007) can be accessed through the NOP Web site at https://www.ams.usda.gov/ nop. pwalker on PROD1PC71 with RULES A. Executive Order 12866 This action has been determined not significant for purposes of Executive Order 12866, and therefore, has not been reviewed by the Office of Management and Budget. B. Executive Order 12988 Executive Order 12988 instructs each executive agency to adhere to certain requirements in the development of new and revised regulations in order to avoid unduly burdening the court system. This interim final rule is not intended to have a retroactive effect. States and local jurisdictions are preempted under the OFPA from creating programs of accreditation for private persons or State officials who want to become certifying agents of organic farms or handling operations. A governing State official would have to apply to USDA to be accredited as a certifying agent, as described in § 6514(b) of the OFPA (7 U.S.C. 6514(b)). States are also preempted under §§ 6503 through 6507 of the OFPA (7 U.S.C. 6503 through 6507) from creating certification programs to certify organic farms or handling operations unless the State programs have been submitted to, and approved by, the Secretary as meeting the requirements of the OFPA. Pursuant to § 6507(b)(2) of the OFPA (7 U.S.C. 6507(b)(2)), a State organic certification program may contain additional requirements for the production and handling of organically produced agricultural products that are produced in the State and for the certification of organic farm and handling operations located within the State under certain circumstances. Such additional requirements must: (a) Further the purposes of the OFPA, (b) not be inconsistent with the OFPA, (c) not be discriminatory toward agricultural commodities organically produced in other States, and (d) not be effective until approved by the Secretary. Pursuant to § 6519(f) of the OFPA (7 U.S.C. 6519(f)), this interim final rule would not alter the authority of the Secretary under the Federal Meat Inspection Act (21 U.S.C. 601 et seq.), the Poultry Products Inspections Act (21 U.S.C. 451 et seq.), or the Egg Products Inspection Act (21 U.S.C. 1031 et seq.), concerning meat, poultry, and egg products, nor any of the authorities of VerDate Aug<31>2005 18:11 Jun 26, 2007 Jkt 211001 the Secretary of Health and Human Services under the Federal Food, Drug and Cosmetic Act (21 U.S.C. 301 et seq.), nor the authority of the Administrator of the Environmental Protection Agency (EPA) under the Federal Insecticide, Fungicide and Rodenticide Act (7 U.S.C. 136 et seq.). Section 6520 of the OFPA (7 U.S.C. 6520) provides for the Secretary to establish an expedited administrative appeals procedure under which persons may appeal an action of the Secretary, the applicable governing State official, or a certifying agent under this title that adversely affects such person or is inconsistent with the organic certification program established under this title. The OFPA also provides that the U.S. District Court for the district in which a person is located has jurisdiction to review the Secretary’s decision. C. Regulatory Flexibility Act The Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.) requires agencies to consider the economic impact of each rule on small entities and evaluate alternatives that would accomplish the objectives of the rule without unduly burdening small entities or erecting barriers that would restrict their ability to compete in the market. The purpose is to fit regulatory actions to the scale of businesses subject to the action. Section 605 of the RFA allows an agency to certify a rule, in lieu of preparing an analysis, if the rulemaking is not expected to have a significant economic impact on a substantial number of small entities. Pursuant to the requirements set forth in the RFA, the Agricultural Marketing Service (AMS) performed an economic impact analysis on small entities in the final rule published in the Federal Register on December 21, 2000 (65 FR 80548). The AMS has also considered the economic impact of this action on small entities. The impact on entities affected by this interim final rule would not be significant. The effect of this interim final rule would be to allow the use of additional substances in agricultural production and handling. This action would modify the regulations to provide both large and small entities with more tools to use in day-to-day operations. The AMS concludes that the economic impact of this addition of allowed substances, if any, would be minimal and entirely beneficial to both large and small agricultural service firms. Accordingly, AMS certifies that this interim final rule will not have a significant economic impact on a substantial number of small entities. AMS invites comments on the PO 00000 Frm 00003 Fmt 4700 Sfmt 4700 35139 economic impact on small entities of this interim final rule. Small agricultural service firms, which include producers, handlers, and accredited certifying agents, have been defined by the Small Business Administration (SBA) (13 CFR 121.201) as those having annual receipts of less than $6,500,000 and small agricultural producers are defined as those having annual receipts of less than $750,000. This interim final rule would have an impact on a substantial number of small entities. Based upon USDA’s Economic Research Service and AMS data compiled from 2001 to 2005, the U.S. organic industry at the end of 2005 included nearly 8,500 certified organic crop and livestock operations, plus more than 2,900 handling operations. Organic crop and livestock operations reported certified acreage totaling more than 4.05 million acres of organic farm production. Total number of organic crop and livestock operations increased by more than 18 percent from 2001 to 2005, while total certified acreage more than doubled during this time period. AMS estimates that these trends continued through 2006 and will be higher in 2007. U.S. sales of organic food and beverages have grown from $1 billion in 1990 to nearly $17 billion in 2006. Organic food sales are projected to reach $23.8 billion for 2010. The organic industry is viewed as the fastest growing sector of agriculture, currently representing nearly 3 percent of overall food and beverage sales. Since 1990, organic retail sales have historically demonstrated a growth rate between 20 to 24 percent each year including a 22 percent increase in 2006. In addition, USDA has accredited 99 certifying agents who have applied to USDA to be accredited in order to provide certification services to producers and handlers. A complete list of names and addresses of accredited certifying agents may be found on the NOP Web site, at https:// www.ams.usda.gov/nop. AMS believes that most of these entities would be considered small entities under the criteria established by the SBA. D. Paperwork Reduction Act Under the OFPA, no additional collection or recordkeeping requirements are imposed on the public by this interim final rule. Accordingly, OMB clearance is not required by section 350(h) of the Paperwork Reduction Act of 1995, 44 U.S.C. 3501, et seq., or OMB’s implementing regulation at 5 CFR part 1320. E:\FR\FM\27JNR1.SGM 27JNR1 35140 Federal Register / Vol. 72, No. 123 / Wednesday, June 27, 2007 / Rules and Regulations AMS is committed to compliance with the Government Paperwork Elimination Act (GPEA), which requires Government agencies in general to provide the public the option of submitting information or transacting business electronically to the maximum extent possible. pwalker on PROD1PC71 with RULES E. Received Comments on Proposed Rule AMS–TM–07–0062 AMS received approximately 1,250 comments on proposed rule AMS-TM– 07–0062. Comments were received from organic producers and handlers, accredited certifying agents, consumers, retailers, food service establishments and public interest groups. In general, comments were opposed to the abbreviated comment period for proposed rule AMS–TM–07–0062 and requested an extended comment period. There were comments that supported the addition of all 38 non-organic agricultural ingredients to the National List; while other comments opposed the addition of all non-organic agricultural ingredients to § 205.606 of the National List. Many comments either supported or opposed the specific National List amendments of the following nonorganic agricultural ingredients: Casings from processed intestines; gelatin; colors from agricultural products; konjac flour; hops; lemongrass; Turkish bay leaves; turmeric; and whey protein concentrate. Some comments addressed the inclusion of CAS numbers or the use of scientific names to identify the nonorganic ingredients. Though a significant number of comments were received, very few comments submitted were from processors or handlers. Comments from this segment of the industry would be helpful in developing a final rule. A number of comments expressed concern regarding the information and criteria used for determining the fragility of the organic ingredient supply or organic availability of the proposed 38 nonorganic agricultural ingredients. As a result of the district court’s final order and judgment in Harvey v. Johanns and requests for an extension of the public comment period on AMS– TM–07–0062, AMS is issuing this interim final rule to (1) Permit the use of the 38 ingredients during the extended comment and final rulemaking periods to minimize the impact to the organic industry and (2) extend the comment period (60 days) to receive additional comments regarding the addition of the 38 non-organic agricultural ingredients to § 205.606. VerDate Aug<31>2005 18:11 Jun 26, 2007 Jkt 211001 F. Effective Date Effective June 9, 2007, these 38 substances were prohibited for use in processed products labeled as ‘‘organic.’’ Continued loss of the use of these products would disrupt the trade of food products currently being labeled as ‘‘organic’’. Therefore, the continued use of these products as ingredients in foods labeled as ‘‘organic’’ is necessary to prevent possible significant business disruption for organic producers and handlers. Accordingly, pursuant to 5 U.S.C. 553, it is found, and determined, upon good cause, that it is impracticable, unnecessary, and contrary to the public interest to give further notice prior to putting this rule into effect, and that good cause exists for not postponing the effective date of this interim final rule until 30 days after publication in the Federal Register. List of Subjects in 7 CFR Part 205 Administrative practice and procedure, Agriculture, Animals, Archives and records, Imports, Labeling, Organically produced products, Plants, Reporting and recordkeeping requirements, Seals and insignia, Soil conservation. I For the reasons set forth in the preamble, 7 CFR part 205, subpart G is amended as follows: PART 205—NATIONAL ORGANIC PROGRAM 1. The authority citation for 7 CFR part 205 continues to read as follows: I Authority: 7 U.S.C. 6501–6522. 2. Section 205.606 is revised to read as follows: I § 205.606 Nonorganically produced agricultural products allowed as ingredients in or on processed products labeled as ‘‘organic.’’ Only the following nonorganically produced agricultural products may be used as ingredients in or on processed products labeled as ‘‘organic,’’ only in accordance with any restrictions specified in this section, and only when the product is not commercially available in organic form. (a) Casings, from processed intestines. (b) Celery powder. (c) Chia (Salvia hispanica L.). (d) Colors derived from agricultural products. (1) Annatto extract color (pigment CAS # 1393–63–1)—water and oil soluble. (2) Beet juice extract color (pigment CAS # 7659–95–2). (3) Beta-carotene extract color, derived from carrots (CAS # 1393–63– 1). PO 00000 Frm 00004 Fmt 4700 Sfmt 4700 (4) Black currant juice color (pigment CAS #’s: 528–58–5, 528–53–0, 643–84– 5, 134–01–0, 1429–30–7, and 134–04– 3). (5) Black/Purple carrot juice color (pigment CAS #’s: 528–58–5, 528–53–0, 643–84–5, 134–01–0, 1429–30–7, and 134–04–3). (6) Blueberry juice color (pigment CAS #’s: 528–58–5, 528–53–0, 643–84– 5, 134–01–0, 1429–30–7, and 134–04– 3). (7) Carrot juice color (pigment CAS # 1393–63–1). (8) Cherry juice color (pigment CAS #’s: 528–58–5, 528–53–0, 643–84–5, 134–01–0, 1429–30–7, and 134–04–3). (9) Chokeberry—Aronia juice color (pigment CAS #’s: 528–58–5, 528–53–0, 643–84–5, 134–01–0, 1429–30–7, and 134–04–3). (10) Elderberry juice color (pigment CAS #’s: 528–58–5, 528–53–0, 643–84– 5, 134–01–0, 1429–30–7, and 134–04– 3). (11) Grape juice color (pigment CAS #’s: 528–58–5, 528–53–0, 643–84–5, 134–01–0, 1429–30–7, and 134–04–3). (12) Grape skin extract color (pigment CAS #’s: 528–58–5, 528–53–0, 643–84– 5, 134–01–0, 1429–30–7, and 134–04– 3). (13) Paprika color (CAS # 68917–78– 2)—dried, and oil extracted. (14) Pumpkin juice color (pigment CAS # 127–40–2). (15) Purple potato juice (pigment CAS #’s: 528–58–5, 528–53–0, 643–84–5, 134–01–0, 1429–30–7, and 134–04–3). (16) Red cabbage extract color (pigment CAS #’s: 528–58–5, 528–53–0, 643–84–5, 134–01–0, 1429–30–7, and 134–04–3). (17) Red radish extract color (pigment CAS #’s: 528–58–5, 528–53–0, 643–84– 5, 134–01–0, 1429–30–7, and 134–04– 3). (18) Saffron extract color (pigment CAS # 1393–63–1). (19) Turmeric extract color (CAS # 458–37–7). (e) Dillweed oil (CAS # 8006–75–5). (f) Fish oil (Fatty acid CAS #’s: 10417–94–4, and 25167–62–8)— stabilized with organic ingredients or only with ingredients on the National List, §§ 205.605 and 205.606. (g) Fructooligosaccharides (CAS # 308066–66–2). (h) Galangal, frozen. (i) Gelatin (CAS # 9000–70–8). (j) Gums—water extracted only (Arabic; Guar; Locust bean; and Carob bean). (k) Hops (Humulus luplus). (l) Inulin-oligofructose enriched (CAS # 9005–80–5). (m) Kelp—for use only as a thickener and dietary supplement. E:\FR\FM\27JNR1.SGM 27JNR1 Federal Register / Vol. 72, No. 123 / Wednesday, June 27, 2007 / Rules and Regulations (n) Konjac flour (CAS # 37220–17–0). (o) Lecithin—unbleached. (p) Lemongrass—frozen. (q) Orange shellac-unbleached (CAS # 9000–59–3). (r) Pectin (high-methoxy). (s) Peppers (Chipotle chile). (t) Starches. (1) Cornstarch (native). (2) Rice starch, unmodified (CAS # 977000–08–0)—for use in organic handling until June 21, 2009. (3) Sweet potato starch—for bean thread production only. (u) Turkish bay leaves. (v) Wakame seaweed (Undaria pinnatifida). (w) Whey protein concentrate. Dated: June 22, 2007. Lloyd C. Day, Administrator, Agricultural Marketing Service. [FR Doc. 07–3142 Filed 6–22–07; 3:00 pm] BILLING CODE 3410–02–P DEPARTMENT OF AGRICULTURE Agricultural Marketing Service 7 CFR Part 948 [Docket No. AMS–FV–06–0180; FV06–948– 610 Review] Irish Potatoes Grown in Colorado; Section 610 Review Agricultural Marketing Service, USDA. ACTION: Confirmation of regulations. pwalker on PROD1PC71 with RULES AGENCY: SUMMARY: This action summarizes the results under the criteria contained in section 610 of the Regulatory Flexibility Act (RFA), of an Agricultural Marketing Service (AMS) review of Marketing Order No. 948, regulating the handling of Irish potatoes grown in Colorado (order). AMS has determined that the order should be continued. ADDRESSES: Interested persons may obtain a copy of the review. Requests for copies should be sent to the Docket Clerk, Marketing Order Administration Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 Independence Avenue, SW., STOP 0237, Washington, DC 20250–0237; Fax: (202) 720–8938; e-mail: moab.docketclerk@usda.gov or Internet: https://www.regulations.gov. FOR FURTHER INFORMATION CONTACT: Teresa Hutchinson or Gary D. Olson, Northwest Marketing Field Office, Marketing Order Administration Branch, Fruit and Vegetable Programs, AMS, USDA, Portland, Oregon 97204; Telephone: (503) 326–2724; Fax: (503) 326–7440; or e-mail: VerDate Aug<31>2005 18:11 Jun 26, 2007 Jkt 211001 Teresa.Hutchinson@usda.gov or GaryD.Olson@usda.gov. Marketing Order No. 948, as amended (7 CFR part 948), regulates the handling of Irish potatoes grown in Colorado, hereinafter referred to as the ‘‘order.’’ 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 State of Colorado is divided into three areas for marketing order purposes. Currently, only Area No. 2 and Area No. 3 are active. Area No. 1, commonly known as the Western Slope, includes and consists of the counties of Routt, Eagle, Pitkin, Gunnison, Hinsdale, La Plata, in the State of Colorado, and all counties in said State west of the aforesaid counties. Area No. 2, commonly known as the San Luis Valley, includes and consists of the counties of Chaffee, Saguache, Huerfano, Las Animas, Mineral, Archuleta, Rio Grande, Conejos, Costilla, and Alamosa in the State of Colorado. Area No. 3, commonly known as Northern Colorado, includes and consists of all the remaining counties in the State of Colorado which are not included in Area No. 1 or Area No. 2. The order establishes administrative committees for each of these areas (area committees). The Area No. 2 administrative committee is comprised of 14 members and their respective alternates. Nine members represent producers and five members represent handlers. Two producers are from Rio Grande County, two producers are from either Saguache County or Chaffee County, one producer is from Conejos County, two producers are from Alamosa County, one producer represents all other counties in Area No. 2, and one producer represents certified seed producers in Area No. 2. Two handlers represent bulk handlers in Area No. 2 and three handlers represent handlers in Area No. 2 other than bulk handlers. The Area No. 3 administrative committee is comprised of five members and their respective alternates. Three producers and two handlers represent producers and handlers from any county in Area No. 3. With regulations in Area No. 1 suspended, there is currently no need for an Area No. 1 administrative committee. The order also establishes the Colorado Potato Committee (CPC) which is comprised of six members and alternates selected by the Department of Agriculture (USDA). Three members SUPPLEMENTARY INFORMATION: PO 00000 Frm 00005 Fmt 4700 Sfmt 4700 35141 and three alternates are selected from nominations of Area No. 2 committee members or alternates, and three members and three alternates are selected from nominations of Area No. 3 committee members or alternates. Currently, there are approximately 175 producers and 95 handlers of Colorado potatoes in both of the active areas. The majority of producers and handlers may be classified as small entities. The regulations implemented under the order are applied uniformly and designed to benefit all entities, regardless of size. AMS published in the Federal Register on February 18, 1999 (64 FR 8014), a plan to review certain regulations, including Marketing Order No. 948, under criteria contained in section 610 of the RFA (5 U.S.C. 601– 612). Updated plans were published in the Federal Register on January 4, 2002 (67 FR 525), August 14, 2003 (68 FR 48574), and again on March 24, 2006 (71 FR 14827). Accordingly, AMS published a notice of review and request for written comments on the Colorado potato marketing order in the February 21, 2006, issue of the Federal Register (71 FR 8810). The deadline for comments ended April 24, 2006. Two comments were received in support of the order, and are discussed later in this document. The review was undertaken to determine whether the Colorado potato marketing order should be continued without being changed, amended, or rescinded to minimize the impacts on small entities. In conducting this review, AMS considered the following factors: (1) The continued need for the order; (2) the nature of complaints or comments received from the public concerning the order; (3) the complexity of the order; (4) the extent to which the order overlaps, duplicates, or conflicts with other Federal rules, and, to the extent feasible, with State and local governmental rules; and (5) the length of time since the order has been evaluated or the degree to which technology, economic conditions, or other factors have changed in the area affected by the order. The order authorizes grade, size, quality, maturity, pack, and container regulations as well as inspection requirements. The grade, size, quality, maturity, and inspection regulations are also applied to imported potatoes under section 608e of the Act. The order also authorizes the area committees to establish projects including marketing research and development projects, designed to assist, improve, or promote the marketing, distribution, and consumption of potatoes. E:\FR\FM\27JNR1.SGM 27JNR1

Agencies

[Federal Register Volume 72, Number 123 (Wednesday, June 27, 2007)]
[Rules and Regulations]
[Pages 35137-35141]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 07-3142]



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Rules and Regulations
                                                Federal Register
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to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

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Federal Register / Vol. 72, No. 123 / Wednesday, June 27, 2007 / 
Rules and Regulations

[[Page 35137]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 205

[Docket No. AMS-TM-07-0062; TM-07-06IF]
RIN 0581-AC71


National Organic Program (NOP)--Amendments to the National List 
of Allowed and Prohibited Substances (Processing)

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with requests for comments.

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

SUMMARY: This Interim final rule amends the Department of Agriculture's 
(USDA) National List of Allowed and Prohibited Substances (National 
List) regulations to enact 38 recommendations submitted to the 
Secretary of Agriculture (Secretary) by the National Organic Standards 
Board (NOSB) during public meetings held May 6-8, 2002, in Austin, 
Texas, and March 27-29, 2007, in Washington, DC. This action is also 
being taken to provide an additional 60 days for the public to comment 
on these 38 amendments to the National List.

DATES: Effective Dates: This interim final rule becomes effective June 
21, 2007. All comments received by August 27, 2007 will be considered 
prior to the issuance of the final rule.

ADDRESSES: Interested persons may comment on this interim final rule 
using any of the following procedures:
     Mail: Comments may be submitted by mail to Robert Pooler, 
Agricultural Marketing Specialist, National Organic Program, USDA/AMS/
TMP/NOP, 1400 Independence Ave., SW., Room 4008-So., Ag Stop 0268, 
Washington, DC 20250.
     Internet: www.regulations.gov.
     Written comments on this interim final rule should be 
identified with the docket number AMS-TM-07-0062. Commenters should 
identify the topic and section number of this interim final rule to 
which the comment refers.
     Clearly indicate if you are for or against the interim 
final rule or some portion of it and your reason for it. Include 
recommendation changes as appropriate.
     Include a copy of articles or other references that 
support your comments. Only relevant material should be submitted.
    All comments to this interim final rule, submitted by the above 
procedures, will be available for viewing at: www.regulations.gov. 
Comments submitted in response to this interim final rule will also be 
available for viewing in person at USDA-AMS, Transportation and 
Marketing, National Organic Program, Room 4008--South Building, 1400 
Independence Ave., SW., Washington, DC, from 9 a.m. to 12 noon and from 
1 p.m. to 4 p.m., Monday through Friday, (except on official Federal 
holidays). Persons wanting to view comments received in response to 
this interim final rule are requested to make an appointment in advance 
by calling (202) 720-3252.

FOR FURTHER INFORMATION CONTACT: Robert Pooler, Agricultural Marketing 
Specialist, National Organic Program, USDA/AMS/TM/NOP, Room 4008-So., 
Ag Stop 0268, 1400 Independence Ave., SW., Washington, DC 20250. Phone: 
(202) 720-3252.

SUPPLEMENTARY INFORMATION:

I. Background

    The Organic Foods Production Act of 1990 (OFPA), as amended, (7 
U.S.C. 6501 et seq.), authorizes the establishment of the NOP 
regulations. On December 21, 2000, the Secretary established, within 
the NOP (7 CFR part 205), the National List regulations Sec. Sec.  
205.600 through 205.607. This National List identifies the synthetic 
substances that may be used and the non-synthetic substances that may 
not be used in organic production. The National List also identifies 
synthetic, non-synthetic non-agricultural and non-organic agricultural 
substances that may be used in organic handling. The OFPA and NOP 
regulations, in Sec.  205.105, specifically prohibit the use of any 
synthetic substance for organic production and handling unless the 
synthetic substance is on the National List. Section 205.105 also 
requires that any non-organic agricultural, non-synthetic non-
agricultural substance used in organic handling must also be on the 
National List.
    Until recently, some producers, handlers and certifying agents have 
misinterpreted National List regulations Sec.  205.606 to mean that any 
non-organic agricultural product which was determined by an accredited 
certifying agent to be not commercially available in organic form could 
be used in organic products, without being individually listed pursuant 
to the National List procedures. In January 2005, the First Circuit 
Court of Appeal's decision in Harvey v. Johanns found that such an 
interpretation is contrary to the plain meaning of the OFPA and held 
that 7 CFR 205.606 shall not be interpreted to create a blanket 
exemption to the National List requirements specified in Sec. Sec.  
6517 and 6518 of the OFPA (7 U.S.C. 6517-6518). Therefore, consistent 
with the district court's final judgment and order, dated June 9, 2005, 
on July 1, 2005, the NOP published a notice regarding Sec.  205.606 (70 
FR 38090), and on June 7, 2006, published a final rule (71 FR 32803) 
revising Sec.  205.606 to clarify that the section shall be interpreted 
to permit the use of a non-organically produced agricultural product 
only when the product has been listed in Sec.  205.606, and when an 
accredited certifying agent has determined that the organic form of the 
agricultural product is not commercially available. In order to enable 
an orderly transition, the district court's final judgment and order 
allowed for products produced in conformance with the misinterpretation 
of Sec.  205.606 to be produced and sold until June 9, 2007, after 
which point no non-conforming products may enter the stream of 
commerce. As a result, since June 9, 2007, any certified products that 
have been produced and entered into the stream of commerce using non-
organic agricultural ingredients that are not listed in Sec.  205.606 
are in non-compliance with the district court's final order and 
judgment on Harvey v. Johanns.
    Concerning organic products that contain no more than 5% non-
organic agricultural ingredients that do not appear on the National 
List, such

[[Page 35138]]

products that have been produced and labeled as organic prior to June 
9, 2007, are considered to be in the stream of commerce. ``Organic'' 
products that meet this description may remain in the marketplace as 
organically produced until the existing supply is exhausted.
    On May 15, 2007, USDA published a proposed rule (72 FR 27252) to 
amend the National List regulations to enact recommendations submitted 
to the Secretary by the NOSB as a result of public meetings held on May 
6-8, 2002, in Austin, TX, and March 27-29, 2007, in Washington, DC. 
This proposed rule suggested the addition of 38 non-organic 
agricultural ingredients, along with any restrictive annotations, to 
the National List regulations. The 38 ingredients proposed for addition 
to the National List were based on petitions from the industry, in 
response to the potential impact of the district court's final order 
and judgment concerning changes to Sec.  205.606 of the NOP 
regulations.
    NOP and NOSB received approximately 99 petitions to add more than 
600 non-organic agricultural ingredients and substances to Sec.  
205.606 of the National List regulations. After Program review for 
adequate petition information, 79 petitions to add 52 substances to the 
National List were forwarded through the petition review process to the 
NOSB Materials and Handling Committees for review and evaluation 
against the OFPA criteria and NOP regulations. Prior to the respective 
public NOSB meetings, 52 draft recommendations from the NOSB committees 
were posted on the NOP Web site for review and public comment. Of the 
52 petitioned ingredients, the NOSB, for their March 2007 meeting, 
requested, received, and reviewed public comments on the petitioned 
ingredients and voted to add 38 ingredients to Sec.  205.606 of the 
National List.
    Under the authority of OFPA and the NOP regulations, the National 
List can be amended by the Secretary based upon recommendations by the 
NOSB.

II. Overview of Amendments

    The following provides an overview of the amendments to designated 
sections of the National List regulations.

Section 205.606 Nonorganically Produced Agricultural Products Allowed 
as Ingredients in or on Processed Products Labeled as ``Organic''

    This interim final rule amends Sec.  205.606 of the National List 
regulations by adding the following substances:

Color Ingredients From Agricultural Products

    Annatto extract color (pigment CAS  1393-63-1)--water and 
oil soluble.
    Beet juice extract color (pigment CAS  7659-95-2).
    Beta-Carotene extract color from carrots (CAS  1393-63-1).
    Black currant juice color (pigment CAS 's: 528-58-5, 528-
53-0, 643-84-5, 134-01-0, 1429-30-7, and 134-04-3).
    Black/Purple carrot juice color (pigment CAS 's: 528-58-5, 
528-53-0, 643-84-5, 134-01-0, 1429-30-7, and 134-04-3).
    Blueberry juice color (pigment CAS 's: 528-58-5, 528-53-0, 
643-84-5, 134-01-0, 1429-30-7, and 134-04-3).
    Carrot juice color (pigment CAS  1393-63-1).
    Cherry juice color (pigment CAS 's: 528-58-5, 528-53-0, 
643-84-5, 134-01-0, 1429-30-7, and 134-04-3).
    Chokeberry--Aronia juice color (pigment CAS 's: 528-58-5, 
528-53-0, 643-84-5, 134-01-0, 1429-30-7, and 134-04-3).
    Elderberry juice color (pigment CAS 's: 528-58-5, 528-53-
0, 643-84-5, 134-01-0, 1429-30-7, and 134-04-3).
    Grape juice color (pigment CAS 's: 528-58-5, 528-53-0, 
643-84-5, 134-01-0, 1429-30-7, and 134-04-3).
    Grape skin extract color (pigment CAS 's: 528-58-5, 528-
53-0, 643-84-5, 134-01-0, 1429-30-7, and 134-04-3).
    Paprika color--dried powder and vegetable oil extract (CAS 
 68917-78-2).
    Pumpkin juice color (pigment CAS  127-40-2).
    Purple potato juice color (pigment CAS 's: 528-58-5, 528-
53-0, 643-84-5, 134-01-0, 1429-30-7, and 134-04-3).
    Red cabbage extract color (pigment CAS 's: 528-58-5, 528-
53-0, 643-84-5, 134-01-0, 1429-30-7, and 134-04-3).
    Red radish extract color (pigment CAS 's: 528-58-5, 528-
53-0, 643-84-5, 134-01-0, 1429-30-7, and 134-04-3).
    Saffron extract color (pigment CAS  1393-63-1).
    Turmeric extract color (CAS  458-37-7).

Ingredients or Processing Aids From Agricultural Products

    Casings, from processed intestines (no CAS ).
    Celery powder (No CAS ).
    Chia (Salvia hispanica L.) (no CAS ).
    Dillweed oil (CAS  8006-75-5).
    Fish oil (Fatty acid CAS 's: 10417-94-4, and 25167-62-8).
    Fructooligosaccharides (CAS  308066-66-2).
    Galangal, frozen (no CAS ).
    Gelatin (CAS  9000-70-8).
    Hops (Humulus lupulus) (no CAS ).
    Inulin, oligofructose enriched (CAS  9005-80-5).
    Konjac flour (CAS  37220-17-0).
    Lemongrass, frozen (no CAS ).
    Orange shellac, unbleached (CAS  9000-59-3).
    Pepper, chipotle chile (no CAS ).
    Rice starch, unmodified (CAS  977000-08-0)--for use in 
organic handling until [two years from date of publication].
    Sweet potato starch, for bean thread production only (no CAS 
).
    Turkish bay leaves (no CAS ).
    Wakame seaweed (Undaria pinnatifida) (no CAS ).
    Whey protein concentrate (no CAS ).

III. Related Documents--Federal Register Notices

    Two notices and one proposed rule (72 FR 27252) were published 
regarding the meetings of the NOSB and its deliberations on 
recommendations and substances petitioned for amending the National 
List. Substances and recommendations included in this interim final 
rule were announced for NOSB deliberation in the following Federal 
Register Notices: (1) 67 FR 19375, April 19, 2002, (Gelatin, Konjac 
flour, Orange shellac); (2) 72 FR 10971, March 12, 2007, (Casings, 
Celery powder, Chia (Salvia hispanica L.), Colors--from agricultural 
products: Annatto extract; Beet juice; Beta-carotene extract; Purple 
carrot juice; Black currant juice; Blueberry juice; Carrot juice; 
Cherry juice; Chokeberry/Aronia juice; Elderberry juice; Grape juice; 
Grape skin extract; Paprika; Pumpkin juice; Purple potato juice; Red 
cabbage extract; Red radish extract; Saffron; Turmeric; Dillweed oil, 
Fish oil, Fructooligosaccharides, Galangal--frozen, Hops, Inulin--
oligofructose enriched, Lemongrass--frozen, Pepper--chipotle chile, 
Rice starch, Sweet potato starch, Turkish bay leaves, Wakame seaweed 
(Undaria pinnatifida), and Whey protein concentrate).

IV. Statutory and Regulatory Authority

    The OFPA, as amended (7 U.S.C. 6501 et seq.), authorizes the 
Secretary to make amendments to the National List based on 
recommendations by the NOSB. Sections 6518(k)(2) and 6518(n) of OFPA 
authorize the NOSB to recommend changes to the National List for 
submission to the Secretary and establish a petition process by which 
persons may petition the NOSB for the purpose of having substances 
evaluated for inclusion on or deletion from the National List. The 
National List petition

[[Page 35139]]

process is implemented under Sec.  205.607 of the NOP regulations. The 
current petition process (72 FR 2167 January 18, 2007) can be accessed 
through the NOP Web site at https://www.ams.usda.gov/nop.

A. Executive Order 12866

    This action has been determined not significant for purposes of 
Executive Order 12866, and therefore, has not been reviewed by the 
Office of Management and Budget.

B. Executive Order 12988

    Executive Order 12988 instructs each executive agency to adhere to 
certain requirements in the development of new and revised regulations 
in order to avoid unduly burdening the court system. This interim final 
rule is not intended to have a retroactive effect.
    States and local jurisdictions are preempted under the OFPA from 
creating programs of accreditation for private persons or State 
officials who want to become certifying agents of organic farms or 
handling operations. A governing State official would have to apply to 
USDA to be accredited as a certifying agent, as described in Sec.  
6514(b) of the OFPA (7 U.S.C. 6514(b)). States are also preempted under 
Sec. Sec.  6503 through 6507 of the OFPA (7 U.S.C. 6503 through 6507) 
from creating certification programs to certify organic farms or 
handling operations unless the State programs have been submitted to, 
and approved by, the Secretary as meeting the requirements of the OFPA.
    Pursuant to Sec.  6507(b)(2) of the OFPA (7 U.S.C. 6507(b)(2)), a 
State organic certification program may contain additional requirements 
for the production and handling of organically produced agricultural 
products that are produced in the State and for the certification of 
organic farm and handling operations located within the State under 
certain circumstances. Such additional requirements must: (a) Further 
the purposes of the OFPA, (b) not be inconsistent with the OFPA, (c) 
not be discriminatory toward agricultural commodities organically 
produced in other States, and (d) not be effective until approved by 
the Secretary.
    Pursuant to Sec.  6519(f) of the OFPA (7 U.S.C. 6519(f)), this 
interim final rule would not alter the authority of the Secretary under 
the Federal Meat Inspection Act (21 U.S.C. 601 et seq.), the Poultry 
Products Inspections Act (21 U.S.C. 451 et seq.), or the Egg Products 
Inspection Act (21 U.S.C. 1031 et seq.), concerning meat, poultry, and 
egg products, nor any of the authorities of the Secretary of Health and 
Human Services under the Federal Food, Drug and Cosmetic Act (21 U.S.C. 
301 et seq.), nor the authority of the Administrator of the 
Environmental Protection Agency (EPA) under the Federal Insecticide, 
Fungicide and Rodenticide Act (7 U.S.C. 136 et seq.).
    Section 6520 of the OFPA (7 U.S.C. 6520) provides for the Secretary 
to establish an expedited administrative appeals procedure under which 
persons may appeal an action of the Secretary, the applicable governing 
State official, or a certifying agent under this title that adversely 
affects such person or is inconsistent with the organic certification 
program established under this title. The OFPA also provides that the 
U.S. District Court for the district in which a person is located has 
jurisdiction to review the Secretary's decision.

C. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.) 
requires agencies to consider the economic impact of each rule on small 
entities and evaluate alternatives that would accomplish the objectives 
of the rule without unduly burdening small entities or erecting 
barriers that would restrict their ability to compete in the market. 
The purpose is to fit regulatory actions to the scale of businesses 
subject to the action. Section 605 of the RFA allows an agency to 
certify a rule, in lieu of preparing an analysis, if the rulemaking is 
not expected to have a significant economic impact on a substantial 
number of small entities.
    Pursuant to the requirements set forth in the RFA, the Agricultural 
Marketing Service (AMS) performed an economic impact analysis on small 
entities in the final rule published in the Federal Register on 
December 21, 2000 (65 FR 80548). The AMS has also considered the 
economic impact of this action on small entities. The impact on 
entities affected by this interim final rule would not be significant. 
The effect of this interim final rule would be to allow the use of 
additional substances in agricultural production and handling. This 
action would modify the regulations to provide both large and small 
entities with more tools to use in day-to-day operations. The AMS 
concludes that the economic impact of this addition of allowed 
substances, if any, would be minimal and entirely beneficial to both 
large and small agricultural service firms. Accordingly, AMS certifies 
that this interim final rule will not have a significant economic 
impact on a substantial number of small entities. AMS invites comments 
on the economic impact on small entities of this interim final rule.
    Small agricultural service firms, which include producers, 
handlers, and accredited certifying agents, have been defined by the 
Small Business Administration (SBA) (13 CFR 121.201) as those having 
annual receipts of less than $6,500,000 and small agricultural 
producers are defined as those having annual receipts of less than 
$750,000. This interim final rule would have an impact on a substantial 
number of small entities.
    Based upon USDA's Economic Research Service and AMS data compiled 
from 2001 to 2005, the U.S. organic industry at the end of 2005 
included nearly 8,500 certified organic crop and livestock operations, 
plus more than 2,900 handling operations. Organic crop and livestock 
operations reported certified acreage totaling more than 4.05 million 
acres of organic farm production. Total number of organic crop and 
livestock operations increased by more than 18 percent from 2001 to 
2005, while total certified acreage more than doubled during this time 
period. AMS estimates that these trends continued through 2006 and will 
be higher in 2007.
    U.S. sales of organic food and beverages have grown from $1 billion 
in 1990 to nearly $17 billion in 2006. Organic food sales are projected 
to reach $23.8 billion for 2010. The organic industry is viewed as the 
fastest growing sector of agriculture, currently representing nearly 3 
percent of overall food and beverage sales. Since 1990, organic retail 
sales have historically demonstrated a growth rate between 20 to 24 
percent each year including a 22 percent increase in 2006.
    In addition, USDA has accredited 99 certifying agents who have 
applied to USDA to be accredited in order to provide certification 
services to producers and handlers. A complete list of names and 
addresses of accredited certifying agents may be found on the NOP Web 
site, at https://www.ams.usda.gov/nop. AMS believes that most of these 
entities would be considered small entities under the criteria 
established by the SBA.

D. Paperwork Reduction Act

    Under the OFPA, no additional collection or recordkeeping 
requirements are imposed on the public by this interim final rule. 
Accordingly, OMB clearance is not required by section 350(h) of the 
Paperwork Reduction Act of 1995, 44 U.S.C. 3501, et seq., or OMB's 
implementing regulation at 5 CFR part 1320.

[[Page 35140]]

    AMS is committed to compliance with the Government Paperwork 
Elimination Act (GPEA), which requires Government agencies in general 
to provide the public the option of submitting information or 
transacting business electronically to the maximum extent possible.

E. Received Comments on Proposed Rule AMS-TM-07-0062

    AMS received approximately 1,250 comments on proposed rule AMS-TM-
07-0062. Comments were received from organic producers and handlers, 
accredited certifying agents, consumers, retailers, food service 
establishments and public interest groups. In general, comments were 
opposed to the abbreviated comment period for proposed rule AMS-TM-07-
0062 and requested an extended comment period. There were comments that 
supported the addition of all 38 non-organic agricultural ingredients 
to the National List; while other comments opposed the addition of all 
non-organic agricultural ingredients to Sec.  205.606 of the National 
List.
    Many comments either supported or opposed the specific National 
List amendments of the following non-organic agricultural ingredients: 
Casings from processed intestines; gelatin; colors from agricultural 
products; konjac flour; hops; lemongrass; Turkish bay leaves; turmeric; 
and whey protein concentrate. Some comments addressed the inclusion of 
CAS numbers or the use of scientific names to identify the non-organic 
ingredients.
    Though a significant number of comments were received, very few 
comments submitted were from processors or handlers. Comments from this 
segment of the industry would be helpful in developing a final rule. A 
number of comments expressed concern regarding the information and 
criteria used for determining the fragility of the organic ingredient 
supply or organic availability of the proposed 38 non-organic 
agricultural ingredients.
    As a result of the district court's final order and judgment in 
Harvey v. Johanns and requests for an extension of the public comment 
period on AMS-TM-07-0062, AMS is issuing this interim final rule to (1) 
Permit the use of the 38 ingredients during the extended comment and 
final rulemaking periods to minimize the impact to the organic industry 
and (2) extend the comment period (60 days) to receive additional 
comments regarding the addition of the 38 non-organic agricultural 
ingredients to Sec.  205.606.

F. Effective Date

    Effective June 9, 2007, these 38 substances were prohibited for use 
in processed products labeled as ``organic.'' Continued loss of the use 
of these products would disrupt the trade of food products currently 
being labeled as ``organic''. Therefore, the continued use of these 
products as ingredients in foods labeled as ``organic'' is necessary to 
prevent possible significant business disruption for organic producers 
and handlers. Accordingly, pursuant to 5 U.S.C. 553, it is found, and 
determined, upon good cause, that it is impracticable, unnecessary, and 
contrary to the public interest to give further notice prior to putting 
this rule into effect, and that good cause exists for not postponing 
the effective date of this interim final rule until 30 days after 
publication in the Federal Register.

List of Subjects in 7 CFR Part 205

    Administrative practice and procedure, Agriculture, Animals, 
Archives and records, Imports, Labeling, Organically produced products, 
Plants, Reporting and recordkeeping requirements, Seals and insignia, 
Soil conservation.

0
For the reasons set forth in the preamble, 7 CFR part 205, subpart G is 
amended as follows:

PART 205--NATIONAL ORGANIC PROGRAM

0
1. The authority citation for 7 CFR part 205 continues to read as 
follows:

    Authority: 7 U.S.C. 6501-6522.

0
2. Section 205.606 is revised to read as follows:


Sec.  205.606  Nonorganically produced agricultural products allowed as 
ingredients in or on processed products labeled as ``organic.''

    Only the following nonorganically produced agricultural products 
may be used as ingredients in or on processed products labeled as 
``organic,'' only in accordance with any restrictions specified in this 
section, and only when the product is not commercially available in 
organic form.
    (a) Casings, from processed intestines.
    (b) Celery powder.
    (c) Chia (Salvia hispanica L.).
    (d) Colors derived from agricultural products.
    (1) Annatto extract color (pigment CAS  1393-63-1)--water 
and oil soluble.
    (2) Beet juice extract color (pigment CAS  7659-95-2).
    (3) Beta-carotene extract color, derived from carrots (CAS 
 1393-63-1).
    (4) Black currant juice color (pigment CAS 's: 528-58-5, 
528-53-0, 643-84-5, 134-01-0, 1429-30-7, and 134-04-3).
    (5) Black/Purple carrot juice color (pigment CAS 's: 528-
58-5, 528-53-0, 643-84-5, 134-01-0, 1429-30-7, and 134-04-3).
    (6) Blueberry juice color (pigment CAS 's: 528-58-5, 528-
53-0, 643-84-5, 134-01-0, 1429-30-7, and 134-04-3).
    (7) Carrot juice color (pigment CAS  1393-63-1).
    (8) Cherry juice color (pigment CAS 's: 528-58-5, 528-53-
0, 643-84-5, 134-01-0, 1429-30-7, and 134-04-3).
    (9) Chokeberry--Aronia juice color (pigment CAS 's: 528-
58-5, 528-53-0, 643-84-5, 134-01-0, 1429-30-7, and 134-04-3).
    (10) Elderberry juice color (pigment CAS 's: 528-58-5, 
528-53-0, 643-84-5, 134-01-0, 1429-30-7, and 134-04-3).
    (11) Grape juice color (pigment CAS 's: 528-58-5, 528-53-
0, 643-84-5, 134-01-0, 1429-30-7, and 134-04-3).
    (12) Grape skin extract color (pigment CAS 's: 528-58-5, 
528-53-0, 643-84-5, 134-01-0, 1429-30-7, and 134-04-3).
    (13) Paprika color (CAS  68917-78-2)--dried, and oil 
extracted.
    (14) Pumpkin juice color (pigment CAS  127-40-2).
    (15) Purple potato juice (pigment CAS 's: 528-58-5, 528-
53-0, 643-84-5, 134-01-0, 1429-30-7, and 134-04-3).
    (16) Red cabbage extract color (pigment CAS 's: 528-58-5, 
528-53-0, 643-84-5, 134-01-0, 1429-30-7, and 134-04-3).
    (17) Red radish extract color (pigment CAS 's: 528-58-5, 
528-53-0, 643-84-5, 134-01-0, 1429-30-7, and 134-04-3).
    (18) Saffron extract color (pigment CAS  1393-63-1).
    (19) Turmeric extract color (CAS  458-37-7).
    (e) Dillweed oil (CAS  8006-75-5).
    (f) Fish oil (Fatty acid CAS 's: 10417-94-4, and 25167-62-
8)--stabilized with organic ingredients or only with ingredients on the 
National List, Sec. Sec.  205.605 and 205.606.
    (g) Fructooligosaccharides (CAS  308066-66-2).
    (h) Galangal, frozen.
    (i) Gelatin (CAS  9000-70-8).
    (j) Gums--water extracted only (Arabic; Guar; Locust bean; and 
Carob bean).
    (k) Hops (Humulus luplus).
    (l) Inulin-oligofructose enriched (CAS  9005-80-5).
    (m) Kelp--for use only as a thickener and dietary supplement.

[[Page 35141]]

    (n) Konjac flour (CAS  37220-17-0).
    (o) Lecithin--unbleached.
    (p) Lemongrass--frozen.
    (q) Orange shellac-unbleached (CAS  9000-59-3).
    (r) Pectin (high-methoxy).
    (s) Peppers (Chipotle chile).
    (t) Starches.
    (1) Cornstarch (native).
    (2) Rice starch, unmodified (CAS  977000-08-0)--for use in 
organic handling until June 21, 2009.
    (3) Sweet potato starch--for bean thread production only.
    (u) Turkish bay leaves.
    (v) Wakame seaweed (Undaria pinnatifida).
    (w) Whey protein concentrate.

    Dated: June 22, 2007.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. 07-3142 Filed 6-22-07; 3:00 pm]
BILLING CODE 3410-02-P
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