This section of the FEDERAL REGISTER
contains regulatory documents having generalapplicability and legal effect, most of whichare keyed to and codified in the Code ofFederal Regulations, which is published under50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents.Rules and RegulationsFederal Register39655 
Vol. 82, No. 161 
Tuesday, August 22, 2017 
DEPARTMENT OF AGRICULTURE 
Agricultural Marketing Service 
7 CFR Part 51 
[Document Number AMS–SC–16–0005, SC– 
16–331] 
U.S. Standards for Grades of Shelled 
Walnuts and Walnuts in the Shell 
AGENCY : Agricultural Marketing Service, 
USDA. 
ACTION : Final rule. 
SUMMARY : This rule revises the U.S. 
Standards for Grades of Shelled Walnuts and the U.S. Standards for Grades of Walnuts in the Shell issued under the Agricultural Marketing Agreement Act of 1946. The Agricultural Marketing Service (AMS) of the Department of Agriculture (USDA) is amending the color requirements to include red- colored walnuts. In addition, AMS is removing the ‘‘Unclassified’’ section. These revisions will modernize the standards to more accurately represent today’s marketing practices and to meet growing consumer demand by providing greater marketing flexibility. 
DATES : Effective September 21, 2017. 
FOR FURTHER INFORMATION CONTACT : 
David G. Horner, Agricultural Marketing Specialist, Specialty Crops Inspection Division, USDA/AMS Specialty Crops Program, 100 Riverside Parkway, Suite 101, Fredericksburg, VA 22406; telephone (540) 361–1120; fax (540) 361–1199; or email Dave.Horner@ams.usda.gov. Copies of the revised U.S. 
Standards for Grades of Shelled Walnuts and Walnuts in the Shell are available at http://www.regulations.gov or http:// 
www.ams.usda.gov/. 
SUPPLEMENTARY INFORMATION : The 
changes in these two sets of standards will permit grade certification of red- colored walnut varieties. These revisions also affect the grade requirements under the marketing order, 7 CFR part 984, issued under the Agricultural Marketing Agreement Act 
of 1937 (7 U.S.C. 601–674) and applicable imports. 
Executive Orders 12866 and 13563 
This rule does not meet the definition 
of a significant regulatory action 
contained in section 3(f) of Executive Order 12866, and is not subject to review by the Office of Management and Budget (OMB). Additionally, because this rule does not meet the definition of a significant regulatory action it does not trigger the requirements contained in Executive Order 13771. See OMB’s Memorandum titled ‘‘Interim Guidance Implementing Section 2 of the Executive Order of January 30, 2017 titled ‘Reducing Regulation and Controlling Regulatory Costs’ ’’ (February 2, 2017). Executive Orders 12866 and 13563 direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is 
necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, reducing costs, harmonizing rules, and promoting flexibility. 
Executive Order 13175 
This action has been reviewed in 
accordance with the requirements of 
Executive Order 13175, Consultation and Coordination with Indian Tribal Governments. The review reveals that this regulation would not have substantial and direct effects on Tribal governments and would not have significant Tribal implications. 
Executive Order 12988 
This rule has been reviewed under 
Executive Order 12988, Civil Justice 
Reform. It is not intended to have retroactive effect. There are no administrative procedures that must be exhausted prior to any judicial challenge to the provisions of this rule. 
Regulatory Flexibility Act and 
Paperwork Reduction Act 
Pursuant to the requirements of the 
Regulatory Flexibility Act (RFA) (5 U.S.C. 601–612), AMS has considered the economic impacts of the revisions to the U.S. Standards for Grades of Shelled Walnuts and the U.S. Standards for Grades of Walnuts in the Shell. The purpose of the RFA is to structure regulatory actions so small businesses will not be unduly or disproportionately burdened. Accordingly, AMS has prepared the following final regulatory flexibility analysis. 
The current U.S. walnut standards 
have four color classifications: Extra Light, Light, Light Amber, and Amber. Product that does not meet these color standards cannot be certified to a U.S. grade. AMS is revising these standards to include a new classification for red- colored walnuts. In addition, AMS is eliminating the ‘‘Unclassified’’ section. These revisions modernize the current grading standards by allowing the industry to meet the growing consumer demand for red-colored walnuts and by promoting better market information and greater marketing flexibility within the industry. 
The process of grading improves the 
functioning of a commodity market. Assigning different prices to different product characteristics and levels of quality increases opportunities for profitable trade. Including red-colored varieties to the walnut grading standards will facilitate additional market opportunities for walnut producers and other participants in the supply chain. The revision will result in a minor change only to the color requirements of the current standards. AMS anticipates that there will be little or no additional cost to implement this revision. This change applies uniformly to all market participants, and will not result in disproportionate additional costs being borne by small walnut producers or other small businesses. 
To determine the proportion of 
walnut producers that would be considered small, AMS conducted the following analysis. The Small Business Administration (SBA) defines small agricultural producers as those with annual receipts of less than $750,000 (13 CFR 121.601). 
AMS used crop value per acre to 
determine the number of bearing acres required to generate annual sales of $750,000 or more, and came to 136 bearing acres. To reach this number, AMS divided the total crop value measured in dollars by the total utilized production measured in tons. Using annual National Agricultural Statistics Service (NASS) data for the years 2010 to 2014, the 5-year average crop value 
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was $1,507,478,000; utilized production 
was 504,800 tons; and, grower price was $2,982 per ton. AMS multiplied the price by yield to find the crop value per acre of $5,670 on average over 5 years. Finally, AMS divided the SBA-defined annual sales threshold of $750,000 by value per acre, which resulted in 136 acres. 
The NASS Agricultural Census is 
conducted every 5 years and in 2012 showed that 87 percent of walnut farming operations in the U.S. fell into its Census category of ‘‘under 100 bearing acres’’ of walnuts. AMS estimates that the proportion of walnut growers that qualify as small businesses under the SBA definition is likely to be close to 90 percent, given the probable exclusion in the ‘‘under 100 bearing acres’’ Census category of walnut producers with bearing acreage between 100 and 136. These small growers will not be disproportionately affected by the final rule as all changes to the standards will be applied uniformly to all market participants. 
In August 2015, the Grades and 
Standards Committee of the California Walnut Board and Commission voted unanimously to revise the U.S. walnut standards to include non-amber cultivars such as red-colored varieties. More than 99 percent of U.S. walnuts are produced in California. Addition of an expanded color certification grade will encourage greater revenue to flow into the industry due to greater marketing opportunities for red-colored 
nuts. Revising the current grading standards to include red walnuts will come at a minimal cost to the industry. The benefits of modernized grading standards, which include better market information and greater marketing flexibility, exceed the minor costs to market participants of implementing this revision to the U.S. standards for walnuts. 
Background 
The current U.S. walnut standards 
only permit the following four colors: 
Extra Light, Light, Light Amber, and Amber. However, consumer demand is growing for red walnuts in the United States. In China, the Livermore variety (a red-colored walnut) is very desirable. U.S. growers and companies expect sales to continue rising domestically and in China, especially once red walnuts are permitted grade certification. 
To address anticipated consumer 
needs, the Grades and Standards Committee of the California Walnut Board and Commission voted unanimously in August 2015 to revise the U.S. walnut standards to include non-amber cultivars, beginning with the 
Livermore variety. Later, the California Walnut Board and Commission sent an official letter to the AMS Administrator formally requesting the addition of red- colored varieties. 
On November 25, 2016, AMS 
published a Proposed Rule in the Federal Register (81 FR 85164) soliciting comments on its proposal to amend the standards to (1) include red- colored walnuts and (2) remove the ‘‘Unclassified’’ section. On March 23, 2017, AMS published a ‘‘Reopening of the comment period’’ in the Federal Register (82 FR 14832). The extended 
comment period closed April 24, 2017. To view the eight posted comments, please visit http://www.regulations.gov. 
Six commenters supported the 
changes. One supporter was a trade association representing nearly 4,000 family farms, nearly 60,000 jobs, and a $1.7 billion walnut industry. The other supporting commenters were from the general public. Two of the supporting individuals asked for clarification on the following: 
•Was there a health hazard in the 
past, preventing red walnuts from being certified to a U.S. grade? No. When the USDA Walnut Color Chart was developed in 1967, walnuts came in light to dark amber colors. Since then, red varieties of walnuts (e.g., Livermore) 
have been bred and seen increased 
demand. The standards are being updated to reflect the changing market. 
•Are red walnuts a type of English 
walnut? Yes. Red walnuts, such as the Livermore variety, are a Juglans Regia cultivar with a red seed coat. 
•What would prevent the industry 
from marketing dyed walnuts as true red walnuts? Marketing Order 984, which regulates walnuts grown in California, prohibits walnuts from being modified in any form (over 99 percent of U.S. walnuts are grown in California). In addition, the U.S. grade standards have no provision for artificial coloring and, therefore, walnuts could not be certified to grade if color was added. 
Two commenters, representing the 
general public, opposed the changes. One believed red walnuts should be free from regulations and the other believed it would affect the market negatively. The purpose of U.S. grade standards is to facilitate the marketing of agriculture in the United States and around the world. These revisions come at the request of the U.S. walnut industry. In addition, AMS believes these revisions would increase supply of red walnuts. Marketing Order 984 requires walnuts grown in California to be certified to a U.S. grade. Once red walnuts can be grade certified, they will become more available to domestic and global consumers. 
Based on the above information 
gathered, AMS is making the following revisions in the U.S. Standards for Grades of Shelled Walnuts: 
•§ 51.2276 Color chart: Removed and 
reserved. The information in this section regarding the U.S.D.A. Walnut Color Chart is obsolete. 
•§ 51.2277 U.S. No. 1(a): Revised to 
include red walnuts. 
•§ 51.2278 U.S. Commercial (a): 
Revised to include red walnuts. 
•§ 51.2279 Unclassified: Removed 
and reserved. AMS is removing this section in all standards as they are revised, as it is no longer considered necessary. 
•§ 51.2281 Color classifications: The 
section is reorganized into subparts (a) and (b) to include red walnuts. 
•§ 51.2282 Table II: Revised to 
include red walnuts. 
•§ 51.2283 Off color: Revised to 
include red walnuts. 
In addition, AMS is making the 
following revisions in the U.S. Standards for Grades of Walnuts in the Shell: 
•§ 51.2946 Color chart: Removed and 
reserved. This section is now redundant and no longer needed. 
•§ 51.2948 U.S. No. 1(a), § 51.2949 
U.S. No. 2(a), and § 51.2950 U.S. No 3(a): Subpart (1) was added to subpart 
(a) in each section to accommodate red walnuts. 
•§ 51.2951 Unclassified: Removed 
and reserved. AMS is removing this section in all standards as they are revised, as it is no longer considered necessary. 
•§ 51.2954 Tolerances for grade 
defects: Revised to include red walnuts. 
The U.S. Standards for Grades of 
Shelled Walnuts and the U.S. Standards for Grades of Walnuts in the Shell will be effective 30 days after publication of this rule in the Federal Register. 
List of Subjects in 7 CFR Part 51 
Food grades and standards, Fruits, 
Nuts, Reporting and recordkeeping 
requirements, Vegetables. 
For reasons set forth in the preamble, 
7 CFR part 51 is amended as follows: 
PART 51—[AMENDED] 
■1. The authority citation for part 51 
continues to read as follows: 
Authority: 7 U.S.C. 1621–1627. 
§ 51.2276 [Removed and reserved] 
■2. Section 51.2276 is removed and 
reserved. 
■3. In § 51.2277, paragraph (a) is 
revised to read as follows: 
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§ 51.2277 U.S. No. 1. 
* * * * * 
(a) Color shall be specified in 
connection with this grade in terms of 
‘‘extra light,’’ ‘‘light,’’ ‘‘light amber,’’ or ‘‘amber’’ from the USDA Walnut Color Chart or in terms of ‘‘red’’ color. The color classifications in the USDA Walnut Color Chart shall not apply to 
‘‘red’’ color. Furthermore, ‘‘red’’ color shall not be mixed with ‘‘extra light,’’ ‘‘light,’’ ‘‘light amber,’’ or ‘‘amber’’ colors. (See § 51.2281 and § 51.2282.) 
* * * * * 
■4. In § 51.2278, paragraph (a) is 
revised to read as follows: 
§ 51.2278 U.S. Commercial. 
* * * * * (a) Color of walnuts based on the 
USDA Walnut Color Chart shall be not 
darker than the ‘‘amber’’ classification. There are no color requirements for ‘‘red’’ color. Color may be specified in connection with the grade in terms of one of the color classifications in the USDA Walnut Color Chart or ‘‘red’’ color. ‘‘Red’’ color shall not be mixed with ‘‘extra light,’’ ‘‘light,’’ ‘‘light amber,’’ or ‘‘amber’’ colors. (See § 51.2281 and § 51.2282.) 
* * * * * 
§ 51.2279 [Removed and reserved] 
■5. Section 51.2279 is removed and 
reserved. 
■6. Revise § 51.2281 to read as follows: § 51.2281 Color classifications. 
The following classifications are 
provided to describe the color of any lot: 
(a) ‘‘Extra light,’’ ‘‘light,’’ ‘‘light 
amber,’’ and ‘‘amber:’’ The portions of 
kernels in the lot shall be not darker than the darkest color permitted in the specified classification as shown on the USDA Walnut Color Chart. 
(b) ‘‘Red:’’ There are no color 
requirements. 
■7. In § 51.2282, Table II is amended by 
adding an entry for ‘‘Red’’ to the end of the table and by revising footnote 1 to read as follows: 
§ 51.2282 Tolerances for color. 
* * * * * 
TABLE II 
Color classification Tolerances for color 
Darker than 
extra light1 Darker than 
light1 Darker than 
light amber1 Darker than 
amber1 
*******  
Red ................................................................................................................... ........................ ........................ ........................ ........................
1See illustration of this term on USDA Walnut Color Chart. 
■8. Revise § 51.2283 to read as follows: 
§ 51.2283 Off color. 
The term ‘‘off color’’ is not a color 
classification, but shall be applied to 
any lot which fails to meet the requirements of the ‘‘amber’’ classification when applying the color 
classifications in the USDA Walnut Color Chart. Off color shall not be used for ‘‘red’’ color. 
§ 51.2946 [Removed and reserved] 
■9. Section 51.2946 is removed and 
reserved. 
■10. In § 51.2948, paragraph (a) is 
revised to read as follows: 
§ 51.2948 U.S. No. 1. 
* * * * * 
(a) Kernel color shall be specified in 
connection with this grade in terms of ‘‘extra light,’’ ‘‘light,’’ ‘‘light amber,’’ or ‘‘amber’’ from the USDA Walnut Color Chart or in terms of ‘‘red’’ color. The color classifications in the USDA Walnut Color Chart shall not apply to ‘‘red’’ color. Furthermore, ‘‘red’’ color shall not be mixed with ‘‘extra light,’’ ‘‘light,’’ ‘‘light amber,’’ or ‘‘amber’’ colors. When kernel color is based on the color classifications from the USDA Walnut Color Chart, at least 70 percent, by count, of the walnuts have kernels which are not darker than ‘‘light amber,’’ and which are free from grade defects: Provided, That at least four- sevenths of the above amount, or 40 percent of the walnuts have kernels which are not darker than ‘‘light.’’ Higher percentages of nuts with kernels not darker than ‘‘light amber’’ which are free from grade defects and/or higher percentages with kernels not darker than ‘‘light’’ which are free from grade defects, may be specified in accordance with the facts. (See § 51.2954.) 
* * * * * 
■11. In § 51.2949, paragraph (a) is 
revised to read as follows: 
§ 51.2949 U.S. No. 2. 
* * * * * 
(a) Kernel color shall be specified in 
connection with this grade in terms of 
‘‘extra light,’’ ‘‘light,’’ ‘‘light amber,’’ or ‘‘amber’’ from the USDA Walnut Color Chart or in terms of ‘‘red’’ color. The color classifications in the USDA Walnut Color Chart shall not apply to ‘‘red’’ color. Furthermore, ‘‘red’’ color shall not be mixed with ‘‘extra light,’’ ‘‘light,’’ ‘‘light amber,’’ or ‘‘amber’’ colors. When kernel color is based on the color classifications from the USDA Walnut Color Chart, at least 60 percent, by count, of the walnuts have kernels which are not darker than ‘‘light amber,’’ and which are free from grade defects. Higher percentages of nuts with kernels not darker than ‘‘light amber’’ which are free from grade defects, and/ or percentages with kernels not darker than ‘‘light’’ which are free from grade 
defects, may be specified in accordance with the facts. (See § 51.2954.) 
* * * * * 
■12. In § 51.2950, paragraph (a) is 
revised to read as follows: 
§ 51.2950 U.S. No. 3. 
* * * * * 
(a) Kernel color may be specified in 
connection with this grade in terms of 
‘‘light amber’’ or ‘‘light’’ from the USDA Walnut Color Chart or in terms of ‘‘red’’ color. The color classifications in the USDA Walnut Color Chart shall not apply to ‘‘red’’ color. Furthermore, ‘‘red’’ color shall not be mixed with ‘‘extra light,’’ ‘‘light,’’ ‘‘light amber,’’ or ‘‘amber’’ colors. When kernel color is based on the color classifications from the USDA Walnut Color Chart, there is no requirement in this grade for the percentage of walnuts having kernels which are ‘‘light amber’’ or ‘‘light.’’ However, the percentage, by count, of nuts with kernels not darker than ‘‘light amber’’ which are free from grade defects and/or the percentage with kernels not darker than ‘‘light’’ which are free from grade defects, may be specified in accordance with the facts. (See § 51.2954.) 
* * * * * 
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§ 51.2951 [Removed and reserved] 
■13. Section 51.2951 is removed and 
reserved. ■14. In § 51.2954, the table is revised to 
read as follows: § 51.2954 Tolerances for grade defects. 
* * * * * 
TOLERANCES FOR GRADE DEFECTS  
Grade External (shell) defects Internal (kernel) defects Kernel color based on USDA 
Walnut Color Chart Kernel color 
based on red 
U.S. No. 1 ...... 10%, by count, for splits. 5%, 
by count, for other shell 
defects, including not more than 3% seriously dam-aged.10% total, by count, including not more than 
6% which are damaged by mold or in-sects or seriously damaged by other means, of which not more than 
5⁄6or 5% 
may be damaged by insects, but no part of any tolerance shall be allowed for wal-nuts containing live insects.No tolerance to reduce the 
required 70% of ‘‘light amber’’ kernels or the re-quired 40% of ‘‘light’’ ker-nels or any larger percent-age of ‘‘light amber’’ or ‘‘light’’ kernels specified.
U.S. No. 2 ...... 10%, by count, for splits. 
10%, by count, for other shell defects, including not more than 5% serious damage by adhering hulls.15% total, by count, including not more than 
8% which are damaged by mold or in-sects or seriously damaged by other means, of which not more than 5/8 or 5% may be damaged by insects, but no part of any tolerance shall be allowed for wal-nuts containing live insects.No tolerance to reduce the 
required 60% or any speci-fied larger percentage of ‘‘light amber’’ kernels, or any specified percentage of ‘‘light’’ kernels.
U.S. No. 3 ...... Same as above tolerance for 
U.S. No. 2.Same as above tolerance for U.S. No. 2 ..... No tolerance to reduce any 
percentage of ‘‘light amber’’ or ‘‘light’’ kernel specified.
Dated: August 16, 2017. 
Bruce Summers, 
Acting Administrator, Agricultural Marketing 
Service. 
[FR Doc. 2017–17641 Filed 8–21–17; 8:45 am] 
BILLING CODE 3410–02–P 
DEPARTMENT OF AGRICULTURE 
Agricultural Marketing Service 
7 CFR Part 52 
[Document Number AMS–FV–08–0076; SC– 
17–330] 
United States Standards for Grades of 
Frozen Onions 
AGENCY : Agricultural Marketing Service, 
USDA. 
ACTION : Final notification. 
SUMMARY : The Agricultural Marketing 
Service (AMS) of the Department of Agriculture (USDA) is establishing voluntary United States Standards for Grades of Frozen Onions. The grade standards provide a common language for trade, a means of measuring value in the marketing of frozen onions, and guidance on the effective use of frozen onions. 
DATES : Effective Date: September 21, 
2017. 
FOR FURTHER INFORMATION CONTACT : 
Contact Brian E. Griffin, Agricultural Marketing Specialist, Specialty Crops Inspection Division, Specialty Crops Program, Agricultural Marketing Service, U.S. Department of Agriculture, 1400 Independence Avenue SW., Room 1536, South Building; STOP 0240, Washington, DC 20250; telephone (202) 720–5021; fax (202) 690–1527; or, email brian.griffin@ams.usda.gov. Copies of 
the new U.S. Standards for Grades of Frozen Onions are available at http://www.regulations.gov or http://
www.ams.usda.gov/. 
SUPPLEMENTARY INFORMATION : Section 
203(c) of the Agricultural Marketing Act of 1946 (Act) (7 U.S.C. 1621–1627), as amended, directs and authorizes the Secretary of Agriculture ‘‘to develop and improve standards of quality, condition, quantity, grade, and packaging, and recommend and demonstrate such standards in order to encourage uniformity and consistency in commercial practices.’’ 
AMS is committed to carrying out this 
authority in a manner that facilitates the marketing of agricultural commodities and makes copies of official grade standards available upon request. The United States Standards for Grades of Fruits and Vegetables unrelated to Federal Marketing Orders or U.S. Import Requirements no longer appear in the Code of Federal Regulations, but are maintained by USDA, AMS, Specialty Crops Program, and are available at https://www.ams.usda.gov/grades- standards. 
AMS is establishing the U.S. 
Standards for Grades of Frozen Onions using the procedures in part 36, Title 7 of the Code of Federal Regulations (7 CFR part 36). 
Background: The American Frozen 
Food Institute (AFFI) petitioned AMS to develop new grade standards for frozen onions. AFFI is a national trade association representing the interests of U.S. frozen food processors and their suppliers in all frozen food sectors, including processors and packers of frozen onions. AFFI’s more than 500 member companies represent approximately 90 percent of all frozen food processed annually in the United States. The AFFI petition provided information on product styles, sample sizes, and a product description for use in the grade standards. 
AMS asked the petitioner for various 
styles of samples in order to determine grades of frozen onions. AMS distributed several discussion drafts of proposed standards to AFFI, instituted changes to the drafts once agreement was reached, then published several Federal Register documents in order to receive comments from all interested parties (see 66 FR 21116, 68 FR 11801, 68 FR 27010, 76 FR 31575, 81 FR 84506, and 82 FR 12424). 
Comments 
In the most recent comments 
published November 23, 2016, in 81 FR 
84506, and extended comment period published March 3, 2017, in 82 FR 12424, AMS received 19 comments. All comments received were from the general public. Three commenters stated they did not feel there was a need for Government grades of frozen onions. AMS developed the proposed U.S. Standards for Grades of Frozen Onions at the request of, and in cooperation with, the frozen food industry. The U.S. 
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