[Federal Register Volume 87, Number 105 (Wednesday, June 1, 2022)]
[Proposed Rules]
[Pages 33064-33071]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-10856]


========================================================================
Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

========================================================================


Federal Register / Vol. 87, No. 105 / Wednesday, June 1, 2022 / 
Proposed Rules

[[Page 33064]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 51

[Doc No. AMS-SC-21-0039, SC-21-327]


Revising U.S. Grade Standards for Pecans in the Shell and Shelled 
Pecans

AGENCY: Agricultural Marketing Service, Department of Agriculture 
(USDA).

ACTION: Proposed rule.

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

SUMMARY: The Agricultural Marketing Service (AMS) proposes to revise 
the U.S. Standards for Grades of Pecans in the Shell and the U.S. 
Standards for Grades of Shelled Pecans by replacing the current grades 
with U.S. Extra Fancy, U.S. Fancy, U.S. Choice, and U.S. Standard 
grades. In addition, AMS proposes to update terminology, definitions, 
and defect scoring guides.

DATES: Comments must be submitted on or before August 1, 2022.

ADDRESSES: Interested persons are invited to submit written comments to 
the USDA, Specialty Crops Inspection Division, 100 Riverside Parkway, 
Suite 101, Fredericksburg, VA 22406; via fax to (540) 361-1199; or, at 
https://www.regulations.gov. Comments should reference the date and 
page number of this issue of the Federal Register. Comments will be 
posted without change, including any personal information provided. All 
comments received within the comment period will become part of the 
public record maintained by the Agency and will be made available to 
the public via https://www.regulations.gov. Comments will be made 
available for public inspection at the above address during regular 
business hours or can be viewed at: https://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Olivia Banks at the address above, or 
by phone (540) 361-1120; fax (540) 361-1199; or email 
<a href="/cdn-cgi/l/email-protection#57183b3e213e36791536393c24172224333679303821"><span class="__cf_email__" data-cfemail="0c4360657a656d224e6d62677f4c797f686d226b637a">[email protected]</span></a>. Copies of the proposed U.S. Standards for Grades 
for Pecans in the Shell and U.S. Standards for Grades of Shelled Pecans 
are available at https://www.regulations.gov. Copies of the current 
Standards are available at https://www.ams.usda.gov/nuts.

SUPPLEMENTARY INFORMATION: This proposed action, pursuant to 5 U.S.C. 
553, would amend regulations at 7 CFR part 51 issued under the 
Agricultural Marketing Act of 1946 (7 U.S.C. 1621-1627), as amended. 
These revisions do not affect the Federal marketing order, 7 CFR part 
986 (referred to as Marketing Order 986), issued under the Agricultural 
Marketing Agreement Act of 1937 (7 U.S.C. 601-674) or applicable 
imports.

Executive Orders 12866 and 13563

    The Department of Agriculture (USDA) is issuing this proposed rule 
in conformance with Executive Orders 12866 and 13563. 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. This proposed action 
falls within a category of regulatory actions that the Office of 
Management and Budget (OMB) has exempted from review under Executive 
Order 12866.

Executive Order 13175

    This proposed rule has been reviewed under E.O. 13175--Consultation 
and Coordination with Indian Tribal Governments, which requires 
agencies to consider whether their rulemaking actions would have tribal 
implications.
    AMS has determined that this proposed rule is unlikely to have 
substantial direct effects on one or more Indian tribes, on the 
relationship between the Federal Government and Indian tribes, or on 
the distribution of power and responsibilities between the Federal 
Government and Indian tribes.

Executive Order 12988

    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. This proposed action 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.

Background

    AMS continuously reviews fruit and vegetable grade standards to 
ensure their effectiveness in the industry and to modernize language.
    On June 12, 2020, the American Pecan Council (APC) petitioned AMS 
to revise the U.S. Standards for Grades of Pecans in the Shell and the 
U.S. Standards for Grades of Shelled Pecans (Standards or Grade 
Standards). The APC was established by, and is regulated under, the 
Federal marketing order for the pecan industry, Marketing Order 986, 
and represents all 15 major U.S. pecan-growing states.
    The APC noted that the pecan Standards have not been substantially 
updated since 1969, the year they were issued, and the terminology of 
the Standards no longer reflect current industry descriptions and 
practices. The National Pecan Shellers Association directed the 
initiative to update the Standards for the APC. The APC voted 
unanimously to submit their proposed revisions to the USDA. AMS and the 
APC have since collaborated to refine the proposed revisions.
    The proposed changes to the Standards would replace current grades 
with new ones, revise scoring guides for defects, create new sizes, and 
revise definitions. AMS proposes to revise the U.S. Standards for 
Grades of Pecans in the Shell and the U.S. Standards for Grades of 
Shelled Pecans by replacing the current grades with U.S. Extra Fancy, 
U.S. Fancy, U.S. Choice, and U.S. Standard grades. The two current 
grades for pecans in the shell are U.S. No. 1 and U.S. No. 2. The six 
current grades for shelled pecans are U.S. No. 1 Halves, U.S. No. 1 
Halves and Pieces, U.S. No. 1 Pieces, U.S. Commercial Halves, U.S. 
Commercial Halves and Pieces, and U.S. Commercial Pieces. These 
proposed changes represent current industry descriptions and practices.
    The proposed revisions do not affect Marketing Order 986 or 
applicable imports since there are no grade, size, or quality standards 
currently applied under the marketing order.
    A 60-day comment period is provided for interested persons to 
submit comments on the proposed revised

[[Page 33065]]

Grade Standards. Copies of the proposed revised standards are at 
https://www.regulations.gov. After the 60-day comment period, AMS will 
move forward in accordance with 7 CFR 36.3(a)(1) through (3).

Initial Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), AMS has considered the economic impact of 
this proposed rule on small entities. Accordingly, AMS has prepared 
this initial regulatory flexibility analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions so that small businesses will not be 
unduly or disproportionately burdened.
    Small agricultural producers are defined by the Small Business 
Administration (SBA) as those having annual receipts of no more than 
$1,000,000 (13 CFR 121.201). Small agricultural service firms 
(handlers) are defined as those with annual receipts of no more than 
$30,000,000 (13 CFR 121.201).
    USDA used the following data and computations to estimate whether a 
majority of U.S. pecan growers and handlers qualify as small or large 
businesses, and the potential economic impact of this proposed rule on 
them. There are two distinct steps in this computation. The first step 
is to use 2017 Agricultural Census date to estimate the number of 
commercial pecan growers, using Marketing Order 986's definition of a 
grower. The second step is to take that estimated number of commercial 
pecan growers and compute the proportion of those growers that are 
small or large businesses using the SBA size threshold of $1,000,000 in 
annual sales.
    Almost all U.S. pecans are grown in a 15-state production area that 
consists of Alabama, Arkansas, Arizona, California, Florida, Georgia, 
Kansas, Louisiana, Missouri, Mississippi, North Carolina, New Mexico, 
Oklahoma, South Carolina, and Texas (7 CFR 986.31). Under Marketing 
Order 986, the term ``grower'' includes those who produce a minimum of 
50,000 pounds of inshell pecans during a representative period or who 
own a minimum of 30 pecan acres (7 CFR 986.17(b)). Growers with an 
orchard that is fewer than 30 pecan acres are not regulated by 
Marketing Order 986 and do not pay an assessment.
    In the 2017 Census of Agriculture, the most recent edition to date, 
25 acres is the lower bound of the range that includes 30 acres (25 to 
49.9 acres). In the 12 states for which the Census has data on the 
number of pecan farms, the Census identified 17,144 total pecan farms. 
Of those, 3,221 were farms with 25 pecan acres or more (with bearing 
and non-bearing acres). Since Marketing Order 986 defines the threshold 
for a commercially viable farm as 30 acres, the estimate of 3,221 
commercial pecan farms may be moderately overstated but is the best 
available estimate of farms selling into the commercial market and 
therefore most affected by grade standards applied to the sale of 
pecans to handlers.
    The second step in the computation is to estimate the number of 
commercial pecan growers that are small and large businesses.
    The Census identified 440 farms with sales of more than $1,000,000, 
which qualify as a large business under the SBA standard, which 
represents 14 percent of the 3,221 farms with 25 or more acres and 3 
percent of total pecan farms. Therefore, 86 percent of commercially 
viable pecan farms are small businesses under the SBA standard.
    The remaining pecan farms do not sell directly into regular 
commercial channels but rather sell small quantities to larger farm 
operations or other businesses.
    The APC estimates there are 105 handlers subject to regulation 
under Marketing Order 986. National Agricultural Statistics Service 
(NASS) data for the years 2018 through 2020, show that the national 
average quantity of pecans produced was 267.3 million pounds, with a 
crop value of $442.6 million. Dividing crop value by quantity yields a 
3-year average grower price of $1.66 per inshell pound. The average 
handler margin is approximately $0.60 per inshell pound according to 
evidence presented in 2015 during formal rulemaking for Marketing Order 
986. Adding the average handler margin to the 3-year average grower 
price of $1.66 per pound results in an estimated handler price of $2.26 
per inshell pound. Multiplying the estimated handler price per pound by 
the 3-year average production of 267.3 million pounds yields a total 
value of production at the handler level of approximately $604 million. 
Dividing this handler-level value of pecan production by the number of 
handlers (105) results in an average return per handler of $5.75 
million, well below the SBA small business threshold of $30,000,000 in 
annual receipts. Building in a $0.10 higher or lower cost to account 
for changes since the 2015 data, the range of average returns per 
handlers could be from $5.5 to $6.0 million, still well below 
$30,000,000. Using these estimated prices, utilization volume, and 
number of handlers, and assuming a normal bell-curve distribution of 
receipts among handlers, the majority of handlers qualify as small 
businesses.
    Food grading standards provide important quality information to 
buyers and sellers that contribute to the efficient marketing of 
agricultural commodities. Because the proposed revisions of the Grade 
Standards represent current industry grading practices, these changes 
will not require any significant changes in grower or handler business 
operations nor any significant industry educational effort. As the 
Standards are voluntary, handlers are not required to use the new terms 
or make any changes. Neither large nor small handlers will incur 
additional costs. No small businesses will be unduly or 
disproportionately burdened.
    USDA has determined that this rule is consistent with and would 
effectuate the purpose of the Agricultural Marketing Act of 1946. 
Therefore, this rule proposes to revise the voluntary U.S. Standards 
for Grades of Pecans in the Shell and the U.S. Standards for Shelled 
Pecans issued under the Agricultural Marketing Act of 1946.

List of Subjects in 7 CFR Part 51

    Agricultural commodities, Food grades and standards, Fruits, Nuts, 
Reporting and recordkeeping requirements, Vegetables.

    For reasons set forth in the preamble, the Agricultural Marketing 
Service proposes to amend 7 CFR part 51 as follows:

PART 51--FRESH FRUITS, VEGETABLES, AND OTHER PRODUCTS (INSPECTION, 
CERTIFICATION, AND STANDARDS)

0
1. The authority citation for part 51 continues to read as follows:

    Authority:  7 U.S.C. 1621-1627.

0
2. Revise Sec.  51.1400 to read as follows:


Sec.  51.1400  U.S. Extra Fancy.

    U.S. Extra Fancy consists of pecans in the shell which meet the 
following requirements:
    (a) Free from loose, extraneous, or foreign material.
    (b) Well cured.
    (c) Shells are:
    (1) Uniform in color; and
    (2) Free from damage by any cause.
    (d) Kernels are:
    (1) Well developed;
    (2) Uniform in color and not darker than ``light;'' and

[[Page 33066]]

    (3) Free from damage by any cause.
    (e) For tolerances see Sec.  51.1406.
0
3. Revise Sec.  51.1401 to read as follows:


Sec.  51.1401  U.S. Fancy.

    U.S. Fancy consists of pecans in the shell which meet the following 
requirements:
    (a) Free from loose, extraneous, or foreign material.
    (b) Well cured.
    (c) Shells are:
    (1) Uniform in color; and
    (2) Free from damage by any cause.
    (d) Kernels are:
    (1) Fairly well developed;
    (2) Uniform in color;
    (3) Not darker than ``light amber,'' unless specified to a lighter 
color classification; and
    (4) Free from damage by any cause.
    (e) For tolerances see Sec.  51.1406.
0
4. Remove the undesignated center heading preceding Sec.  51.1402.
0
5. Revise Sec.  51.1402 to read as follows:


Sec.  51.1402  U.S. Choice.

    U.S. Choice consists of pecans in the shell which meet the 
following requirements:
    (a) Free from loose, extraneous, or foreign material.
    (b) Well cured.
    (c) Shells are:
    (1) Fairly uniform in color; and
    (2) Free from serious damage by any cause.
    (d) Kernels are:
    (1) Not poorly developed;
    (2) Fairly uniform in color;
    (3) Not darker than ``amber,'' unless specified to a lighter color 
classification; and
    (4) Free from serious damage by any cause.
    (e) For tolerances see Sec.  51.1406.
0
6. Remove the undesignated center heading preceding Sec.  51.1403.
0
7. Revise Sec.  51.1403 to read as follows:


Sec.  51.1403  U.S. Standard.

    U.S. Standard consists of pecans in the shell which meet the 
following requirements:
    (a) Free from loose, extraneous, or foreign material;
    (b) Well cured;
    (c) No requirement for fullness of kernel;
    (d) No requirement for uniformity of color of shells or kernels;
    (e) May contain kernels that are ``dark amber'' or darker, unless 
specified to a lighter color classification; and
    (f) Increased tolerances for defects see Sec.  51.1406.
0
8. Revise the undesignated center heading preceding Sec.  51.1404 to 
read as follows:

Size Classification

0
9. Revise Sec.  51.1404 to read as follows:


Sec.  51.1404  Size classification.

    Size of pecans may be specified in connection with the grade in 
accordance with one of the following classifications. To meet the 
requirements for any one of the classifications in Table 1 to this 
section, the lot must conform to both the specified number of nuts per 
pound and the weight of the 10 smallest nuts per 100-nut sample.

                                            Table 1 to Sec.   51.1404
----------------------------------------------------------------------------------------------------------------
                                          Number of nuts per    Minimum weight of the 10 smallest nuts per  100-
         Size classification                    pound                              nut sample
----------------------------------------------------------------------------------------------------------------
Jumbo................................  55 or less.............  In each classification, the 10 smallest nuts per
Extra Large..........................  56 to 63...............   100 must weigh at least 7% of the total weight
Large................................  64 to 77...............   of the 100 nut-sample.
Medium...............................  78 to 100..............
Small................................  101 more...............
----------------------------------------------------------------------------------------------------------------

0
10. Revise the undesignated center heading preceding Sec.  51.1405 to 
read as follows:

Kernel Color Classification

0
11. Revise Sec.  51.1405 to read as follows:


Sec.  51.1405  Kernel color classification.

    (a) The skin color of the pecan kernels may be described in terms 
of the color classifications provided in this section. When the color 
of kernels in a lot generally conforms to the ``light'' or ``light 
amber'' classification, the color classification may be used to 
describe the lot in connection with the grade.
    (1) Light means that the kernel is mostly golden color or lighter, 
with not more than 25 percent of the surface darker than golden, and 
none of the surface darker than light brown.
    (2) Light amber means that more than 25 percent of the kernel is 
light brown, with not more than 25 percent of the surface darker than 
light brown, none of which is darker than medium brown.
    (3) Amber means that more than 25 percent of the kernel is medium 
brown, with not more than 25 percent of the surface darker than medium 
brown, none of which is darker than dark brown (very dark brown or 
blackish-brown discoloration).
    (4) Dark amber means that more than 25 percent of the kernel is 
dark brown, with not more than 25 percent of the surface darker than 
dark brown (very dark brown or blackish-brown discoloration).
    (b) U.S. Department of Agriculture kernel color standards, PEC-MC-
1, illustrate the color intensities implied by the terms ``golden,'' 
``light brown,'' ``medium brown,'' and ``dark brown'' referred to in 
paragraph (a) of this section. The color standards are available at 
https://www.ams.usda.gov/grades-standards.
0
12. Revise the undesignated center heading preceding Sec.  51.1406 to 
read as follows:

Tolerances

0
13. Revise Sec.  51.1406 to read as follows:


Sec.  51.1406  Tolerances.

    In order to allow for variations incident to proper grading and 
handling in each of the foregoing grades, the following tolerances are 
provided as specified:
    (a) U.S. Extra Fancy, U.S. Fancy, and U.S. Choice grades--(1) For 
shell defects, by count. 5 percent for pecans with damaged shells, 
including therein not more than 2 percent for shells which are 
seriously damaged.
    (2) For kernel defects, by count. 12 percent for pecans with 
kernels which fail to meet the requirements for the grade or any 
specified color classification, including therein not more than 7 
percent for kernels which are seriously damaged: Provided, That not 
more than 6 percent shall be allowed for kernels which are rancid, 
moldy, decayed, or injured by insects: Provided further, That included 
in this

[[Page 33067]]

6 percent tolerance not more than 0.5 percent (one-half of 1 percent) 
shall be allowed for pecans with live insects inside the shell.
    (3) For loose, extraneous, or foreign material, by weight. 0.5 
percent (one-half of 1 percent).
    (b) U.S. Standard grade--(1) For shell defects, by count. 10 
percent for pecans with damaged shells, including therein not more than 
3 percent for shells which are seriously damaged.
    (2) For kernel defects, by count. 30 percent for pecans with 
kernels which fail to meet the requirements for the U.S. Extra Fancy, 
U.S. Fancy, or U.S. Choice grades, including therein not more than 10 
percent for kernels which are seriously damaged: Provided, That not 
more than 7 percent shall be allowed for kernels which are rancid, 
moldy, decayed, or injured by insects: Provided further, That included 
in this 7 percent tolerance not more than 0.5 percent (one-half of 1 
percent) shall be allowed for pecans with live insects inside the 
shell.
    (3) For loose, extraneous, or foreign material, by weight. 0.5 
percent (one-half of 1 percent).
0
14. Revise the undesignated center heading preceding Sec.  51.1407 to 
read as follows:

Application of Tolerances

0
15. Revise Sec.  51.1407 to read as follows:


Sec.  51.1407  Application of tolerances.

    Individual 100-count samples shall have mot more than one and one-
half times a specified tolerance of 5 percent or more and not more than 
double a tolerance of less than 5 percent, except that at least one 
pecan which is seriously damaged by live insects inside the shell is 
permitted: Provided, That the averages for the entire lot are within 
the tolerances specified for the grade.
0
16. Add an undesignated center heading preceding Sec.  51.1408 to read 
as follows:

Sample for Grade or Size Determination

0
17. Revise Sec.  51.1408 to read as follows:


Sec.  51.1408  Sample for grade or size determination.

    Each sample shall consist of 100 pecans. The individual sample 
shall be drawn at random from a sufficient number of packages to form a 
100-count composite sample. The number of such individual 100-count 
samples drawn for grade or size determination will vary with the size 
of the lot. When practicable, at point of packaging the sample may be 
obtained from the grading belt after sorting has been completed.
0
18. Add an undesignated center heading preceding Sec.  51.1409 to read 
as follows:

Definitions

0
19. Revise Sec.  51.1409 to read as follows:


Sec.  51.1409  Loose extraneous or foreign material.

    Loose extraneous or foreign material means loose hulls, empty 
broken shells, rocks, wood, glass, plastic, or any substance other than 
pecans in the shell or pecan kernels.
0
20. Revise Sec.  51.1410 to read as follows:


Sec.  51.1410  Well cured.

    Well cured means the kernel separates freely from the shell, breaks 
cleanly when bent without splintering, shattering, or loosening the 
skin; and the kernel appears to be in good shipping or storage 
condition as to moisture content.
0
21. Revise Sec.  51.1411 to read as follows:


Sec.  51.1411  Well developed.

    Well developed means that the kernel is full-meated throughout its 
width and length.
0
22. Revise Sec.  51.1412 to read as follows:


Sec.  51.1412  Fairly well developed.

    Fairly well developed means that the kernel is full-meated in over 
50 percent of its width and length.
0
23. Revise Sec.  51.1413 to read as follows:


Sec.  51.1413  Poorly developed.

    Poorly developed means that the kernel is full-meated in less than 
25 percent of its width and length.
0
24. Revise Sec.  51.1414 to read as follows:


Sec.  51.1414  Uniform in color.

    Uniform in color means that the shells do not show sufficient 
variation in color to detract from the general appearance of the lot 
and that 95 percent or more of the kernels in the lot have skin color 
within the range of one or two color classifications.
0
25. Revise Sec.  51.1415 to read as follows:


Sec.  51.1415  Fairly uniform in color.

    Fairly uniform in color means that the shells do not show 
sufficient variation in color to materially detract from the general 
appearance of the lot and that 85 percent or more of the kernels in the 
lot have skin color within the range of one or two color 
classifications.
0
26. Remove the undesignated center heading preceding Sec.  51.1416.
0
27. Revise Sec.  51.1416 to read as follows:


Sec.  51.1416  Damage.

    Damage means any specific defect described in this section; or an 
equally objectionable variation of any one of these defects, or any 
other defect, or any combination of defects, which materially detracts 
from the appearance or the edible or marketing quality of the 
individual pecan or the general appearance of the pecans in the lot. 
The following defects shall be considered as damage:
    (a) Adhering hull material or dark stains affecting an aggregate of 
more than 5 percent of the surface of the individual shell;
    (b) Adhering material from inside the shell when firmly attached to 
more than one-third of the outer surface of the kernel and contrasting 
in color with the skin of the kernel;
    (c) Broken shells when any portion of the shell is missing;
    (d) Internal flesh discoloration of a medium shade of gray or brown 
extending more than one-fourth inch (6 mm) lengthwise beneath the 
center ridge, or any equally objectionable amount in other portions of 
the kernel; or lesser areas of dark discoloration affecting the 
appearance to an equal or greater extent;
    (e) Kernels which are dark amber in color;
    (f) Kernels which are not well cured;
    (g) Kernel spots when more than one dark spot is present on either 
half of the kernel, or when any such spot is more than one-eighth inch 
(3 mm) in greatest dimension;
    (h) Poorly developed kernels;
    (i) Shriveling when the surface of the kernel is very conspicuously 
wrinkled; and
    (j) Split or cracked shells when the shell is spread apart or will 
spread upon application of slight pressure.
0
28. Add Sec.  51.1417 to read as follows:


Sec.  51.1417  Serious damage.

    Serious damage means any specific defect described in this section; 
or an equally objectionable variation of any one of these defects, or 
any other defect, or any combination of defects, which seriously 
detracts from the appearance or the edible or marketing quality of the 
individual pecan. The following defects shall be considered as serious 
damage:
    (a) Adhering hull material or dark stains affecting an aggregate of 
more than 20 percent of the individual shell;
    (b) Broken shells when the missing portion of shell is greater in 
area than

[[Page 33068]]

a circle one-fourth inch (6 mm) in diameter;
    (c) Dark discoloration of the skin which is darker than dark amber 
over more than 25 percent of the surface of the kernel;
    (d) Decay affecting any portion of the kernel;
    (e) Insects, web, frass, or the kernel shows distinct evidence of 
insect feeding on the kernel;
    (f) Internal flesh discoloration of a dark shade extending more 
than one-third the length of the kernel beneath the ridge, or an 
equally objectionable amount of dark discoloration in other portions of 
the kernel;
    (g) Kernel spots when more than three dark spots on either half of 
the kernel, or when any spot or the aggregate of two or more spots on 
one of the halves of the kernel affects more than 10 percent of the 
surface;
    (h) Mold, on the surface or inside the kernel, which is plainly 
visible without magnification;
    (i) Rancidity when the kernel is distinctly rancid to the taste. 
Staleness of flavor shall not be classed as rancidity;
    (j) Undeveloped kernels having practically no food value, or which 
are blank (complete shell containing no kernel); and
    (k) Worm holes when penetrating the shell.
0
29. Add Sec.  51.1418 to read as follows:


Sec.  51.1418  Inedible kernels.

    Inedible kernels means that the kernel or pieces of kernels are 
rancid, moldy, decayed, injured by insects or otherwise unsuitable for 
human consumption.
0
30. Add Sec.  51.1419 to read as follows:


Sec.  51.1419  Rancidity.

    Rancidity refers to the tendency of the oil in a pecan kernel to 
become tainted as a result of oxidation or hydrolysis. While there is 
no definitive measure to determine rancidity, the tendency of the 
kernel to become rancid can be evaluated by testing the kernel's 
peroxide and free fatty acid values. Peroxide values should be less 
than 5 mEq/kg and free fatty acid should be less than 1%.
0
31. Add Sec.  51.1420 to read as follows:


Sec.  51.1420  Kernel moisture content.

    Moisture content shall be no more than 6%, unless otherwise 
specified.
0
32. Revise Sec.  51.1430 to read as follows:


Sec.  51.1430  U.S. Extra Fancy.

    U.S. Extra Fancy consists of pecan half-kernels which meet the 
following requirements:
    (a) For quality. (1) Well dried;
    (2) Well developed;
    (3) Uniform in color;
    (4) Not darker than ``light;''
    (5) Free from damage by any cause; and
    (6) Comply with tolerances for defects (see Sec.  51.1437).
    (b) For size. (1) Uniform in size; and
    (2) Conform to size classification or count specified.
0
33. Revise Sec.  51.1431 to read as follows:


Sec.  51.1431  U.S. Fancy.

    U.S. Fancy consists of pecan half-kernels which meet the following 
requirements:
    (a) For quality. (1) Well dried;
    (2) Fairly well developed;
    (3) Uniform in color;
    (4) Not darker than ``light amber,'' unless specified to a lighter 
color classification;
    (5) Free from damage by any cause; and
    (6) Comply with tolerances for defects (see Sec.  51.1437).
    (b) For size. (1) Uniform in size; and
    (2) Conform to size classification or count specified.
0
34. Revise Sec.  51.1432 to read as follows:


Sec.  51.1432.  U.S. Choice.

    U.S. Choice consists of pecan half-kernels which meet the following 
requirements:
    (a) For quality. (1) Well dried;
    (2) Not poorly developed;
    (3) Fairly uniform in color;
    (4) Not darker than ``amber,'' unless specified to a lighter color 
classification;
    (5) Free from serious damage by any cause; and
    (6) Comply with tolerances for defects (see Sec.  51.1437).
    (b) For size. (1) Fairly uniform in size; and
    (2) Conform to size classification or count specified.
0
35. Revise Sec.  51.1433 to read as follows:


Sec.  51.1433  U.S. Standard.

    U.S. Standard consists of pecan half-kernels which meet the 
following requirements:
    (a) For quality. (1) Well dried;
    (2) No requirement for fullness of kernel;
    (3) No requirement for uniformity of kernel;
    (4) May contain kernels ``dark amber'' or darker, unless specified 
to a lighter color classification; and
    (5) Increased tolerances for defects (see Sec.  51.1437).
    (b) For size. (1) No uniformity in size; and
    (2) Conform to size classification or count specified.
0
36. Add an undesignated center heading preceding Sec.  51.1434 to read 
as follows:

Color Classifications

0
37. Revise Sec.  51.1434 to read as follows:


Sec.  51.1434  Color classification.

    (a) The skin color of pecan kernels may be described in terms of 
the color classifications provided in this section. When the color of 
kernels in a lot generally conforms to ``light'' or ``light amber'' 
classification, that color classification may be used to describe the 
lot in connection with the grade.
    (1) Light means that the kernel is mostly golden color or lighter, 
with not more than 25 percent of the surface darker than golden, and 
none of the surface darker than light brown.
    (2) Light amber means that the kernel has more than 25 percent of 
the surface light brown, but not more than 25 percent of surface darker 
than light brown, and none of the surface darker than medium brown.
    (3) Amber means that the kernel has more than 25 percent of the 
surface medium brown, but not more than 25 percent of surface darker 
than medium brown, and none of the surface darker than dark brown (very 
dark brown or blackish-brown discoloration).
    (4) Dark amber means that the kernel has more than 25 percent of 
the surface dark brown, but not more than 25 percent of surface darker 
than dark brown (very dark brown or blackish-brown discoloration).
    (b) U.S. Department of Agriculture kernel color standards, PEC-MC-
1, illustrate the color intensities implied by the terms ``golden,'' 
``light brown,'' ``medium brown,'' and ``dark brown'' referred to in 
paragraph (a) of this section. The color standards are available at 
https://www.ams.usda.gov/grades-standards.
0
38. Add an undesignated center heading preceding Sec.  51.1435 to read 
as follows:

Size Classifications

0
39. Revise Sec.  51.1435 to read as follows:


Sec.  51.1435  Size classification for halves.

    The size of pecan halves in a lot may be specified in accordance 
with one of the size classifications shown in Table 1 to this section.
    (a) Basis of weight. The number of halves per pound shall be based 
upon the weight of half-kernels after all pieces, meal and flour, 
shell, center

[[Page 33069]]

wall, and foreign material have been removed.
    (b) Size specifications. In lieu of the size classifications in 
Table 1 to this section, the size of pecan halves in a lot may be 
specified in terms of the number of halves or a range of number of 
halves per pound. For example, ``400'' or ``600-700.''
    (c) Tolerance for count per pound. In order to allow for variations 
incident to proper sizing, a tolerance shall be permitted as follows:
    (1) When an exact number of halves per pound is specified, the 
actual count per pound may vary not more than 5 percent from the 
specified number; and
    (2) When any size classification shown in Table 1 to this section 
or a range in count per pound is specified, no tolerance shall be 
allowed for counts outside of the specified range.
    (d) Tolerances for pieces, meal, and flour--(1) For U.S. Extra 
Fancy halves. In order to allow for variations incident to proper 
sizing and handling, not more than 5 percent, by weight, of any lot may 
consist of pieces, meal, and flour: Provided, That included in this 
amount, not more than 3 percent, shall be allowed for portions less 
than one-half of a complete half-kernel, including not more than 1 
percent for meal and flour.
    (2) For U.S. Fancy halves. In order to allow for variations 
incident to proper sizing and handling, not more than 15 percent, by 
weight, of any lot may consist of pieces, meal, and flour: Provided, 
That not more than one-third of this amount, or 5 percent, shall be 
allowed for portions less than one-half of a complete half-kernel, 
including not more than 1 percent for meal and flour.
    (3) For all other halves. In order to allow for variations incident 
to proper sizing and handling, not more than 20 percent, by weight, of 
any lot may consist of pieces, meal, and flour: Provided, That not more 
than one-quarter of this amount, or 5 percent, shall be allowed for 
portions less than one-half of a complete half-kernel, including not 
more than 1 percent for meal and flour.

                        Table 1 to Sec.   51.1435
------------------------------------------------------------------------
    Size classification  for halves        Number of halves  per pound
------------------------------------------------------------------------
Mammoth................................  250 or less.
Junior Mammoth.........................  251 to 350.
Jumbo..................................  351 to 450.
Large..................................  451 to 550.
Medium.................................  551 to 650.
Topper.................................  651 to 750.
King Topper............................  751 more.
------------------------------------------------------------------------

0
40. Remove the undesignated center heading preceding Sec.  51.1436.
0
41. Revise Sec.  51.1436 to read as follows:


Sec.  51.1436  Size classification for pieces.

    The size of pecan pieces in a lot may be specified in accordance 
with one of the size classifications shown in Table 1 to this section. 
Sizes are measured using a round-hole screen.
    (a) Size specifications. In lieu of the size classifications in 
Table 1 to this section, the size of pieces in a lot may be specified 
in terms of minimum diameter, or as a range described in terms of 
minimum and maximum diameters expressed in sixteenths or sixty-fourths 
of an inch.
    (b) Tolerances for size of pieces. In order to allow for variations 
incident to proper sizing, tolerances are provided for pieces in a lot 
which fail to meet the requirements of any size specified. The 
tolerances, by weight, are as follows:
    (1) For U.S. Extra Fancy and Fancy pieces. Not more than 15 percent 
of the lot may fall outside of the size range in Table 1 to this 
section. Further, not more than 1 percent of the pieces may pass 
through an eight sixty-fourths of an inch round hole screen.
    (2) For U.S. Choice pieces. Not more than 20 percent of the lot may 
fall outside of the size range in Table 1 to this section. Further, not 
more than 2 percent of the pieces may pass through an eight sixty-
fourths of an inch round hole screen.
    (3) For U.S. Standard pieces. Not more than 25 percent of the lot 
may fall outside of the size range in Table 1 to this section. Further, 
not more than 2 percent of the pieces may pass through an eight sixty-
fourths of an inch round hole screen.

                        Table 1 to Sec.   51.1436
------------------------------------------------------------------------
                                                       Minimum diameter
                                   Maximum diameter     (will not pass
                                  (will pass through     through round
       Size classification         round opening  of    opening  of the
                                     the following         following
                                       diameter)           diameter)
------------------------------------------------------------------------
Extra-Large Pieces..............  No limitation.....  32/64 inch.
Large Pieces....................  32/64 inch........  24/64 inch.
Halves and Pieces...............  No limitation.....  20/64 inch.
Medium Pieces...................  24/64 inch........  16/64 inch.
Small Pieces....................  16/64 inch........  12/64 inch.
Topping Pieces..................  12/64 inch........  8/64 inch.
Granules........................  8/64 inch.........  4/64 inch.
------------------------------------------------------------------------

0
42. Revise the undesignated center heading preceding Sec.  51.1437 to 
read as follows:

Tolerances for Defects

0
43. Revise Sec.  51.1437 to read as follows:


Sec.  51.1437  Tolerances for defects.

    In order to allow for variations incident to proper grading and 
handling in each of the foregoing grades, the following tolerances, by 
weight, are provided as specified:
    (a) U.S. Extra Fancy grade. (1) No foreign material;
    (2) 0.01 percent for shell, and center wall;
    (3) Zero tolerance is provided for pecan weevil;
    (4) 3 percent for portions of kernels which are ``dark amber'' or 
darker color; and
    (5) 3 percent for portions of kernels which fail to meet the 
remaining requirements of the grade, including therein not more than 
0.50 percent for defects causing serious damage: Provided, That any 
unused portion of this tolerance may be applied to increase the 
tolerance for kernels which are ``dark amber'' or darker color, or 
darker than any specified lighter color classification.
    (b) U.S. Fancy grade. (1) No foreign material;
    (2) 0.01 percent for shell and center wall;
    (3) No more than 2 pecan weevil larvae per 30-pounds of product;
    (4) 5 percent for portions of kernels which are ``dark amber'' or 
darker color, or darker than any specified lighter color 
classification, but which are not otherwise defective; and
    (5) 5 percent for portions of kernels which fail to meet the 
remaining requirements of the grade, including

[[Page 33070]]

therein not more than 0.50 percent for defects causing serious damage: 
Provided, That any unused portion of this tolerance may be applied to 
increase the tolerance for kernels which are ``dark amber'' or darker 
color, or darker than any specified lighter color classification.
    (c) U.S. Choice grade. (1) No foreign material;
    (2) 0.01 percent for shell and center wall;
    (3) No more than 5 pecan weevil larvae per 30-pounds of product;
    (4) 15 percent for portions of kernels which are ``dark amber'' or 
darker color, or darker than any specified lighter color 
classification, but which are not otherwise defective; and
    (5) 8 percent for portions of kernels which fail to meet the 
remaining requirements of the grade, including therein not more than 1 
percent for defects causing serious damage.
    (d) U.S. Standard grade. (1) No foreign material;
    (2) 0.01 percent for shell and center wall;
    (3) No limit on the number of pecan weevil larvae per 30 pounds of 
product;
    (4) 25 percent for portions of kernels which are ``dark amber'' or 
darker color, or darker than any specified lighter color 
classification, but which are not otherwise defective; and
    (5) 15 percent for portions of kernels which fail to meet the 
remaining requirements of the grade, including therein not more than 1 
percent for defects causing serious damage.
0
44. Add an undesignated center heading preceding Sec.  51.1438 to read 
as follows:

Application of Standards

0
45. Revise Sec.  51.1438 to read as follows:


Sec.  51.1438  Application of standards.

    The grade of a lot of shelled pecans shall be determined on the 
basis of a composite sample drawn at random from containers in various 
locations in the lot. However, any identifiable container or number of 
containers in which the pecans are obviously of a quality or size 
materially different from that in the majority of containers, shall be 
considered as a separate lot, and shall be sampled and graded 
separately.
0
46. Revise the undesignated center heading preceding Sec.  51.1439 to 
read as follows:

Definitions

0
47. Revise Sec.  51.1439 to read as follows:


Sec.  51.1439  Half-kernel.

    (a) For Extra Fancy halves, a half-kernel means one of the 
separated halves of an entire pecan kernel with not more than one-
eighth of its original volume missing, exclusive of the portion which 
formerly connected the two halves of the kernel.
    (b) For all other halves, a half-kernel means one of the separated 
halves of an entire pecan kernel with not more than one-quarter of its 
original volume missing, exclusive of the portion which formerly 
connected the two halves of the kernel.
0
48. Remove the undesignated center heading preceding Sec.  51.1440.
0
49. Revise Sec.  51.1440 to read as follows:


Sec.  51.1440  Piece.

    Piece means a portion of a kernel which is less than seven-eighths 
of a half-kernel, but which will not pass through a round opening four 
sixty-fourths of an inch in diameter.
0
50. Remove the undesignated center heading preceding Sec.  51.1441.
0
51. Revise Sec.  51.1441 to read as follows:


Sec.  51.1441  Meal and flour.

    Meal and flour means fragments of kernels which will pass through a 
round opening four sixty-fourths of an inch in diameter.
0
52. Revise Sec.  51.1442 to read as follows:


Sec.  51.1442  Well dried.

    Well dried means that the portion of kernel is firm and crisp, not 
pliable, or leathery. Moisture should be no more than 4.5%, unless 
otherwise specified.
0
53. Revise Sec.  51.1443 to read as follows:


Sec.  51.1443  Well developed.

    Well developed means that the kernel is full-meated through its 
width and length.
0
54. Revise Sec.  51.1444 to read as follows:


Sec.  51.1444  Fairly well developed.

    Fairly well developed means that the kernel is full-meated in over 
50 percent of its width and length.
0
55. Revise Sec.  51.1445 to read as follows:


Sec.  51.1445  Poorly developed.

    Poorly developed means that the kernel is full-meated in less than 
25 percent of its width and length.
0
56. Revise Sec.  51.1446 to read as follows:


Sec.  51.1446  Uniform in color.

    Uniform in color means that 95 percent or more of the kernels in 
the lot have skin color within the range of one or two color 
classifications.
0
57. Revise Sec.  51.1447 to read as follows:


Sec.  51.1447  Fairly uniform in color.

    Fairly uniform in color means that 85 percent or more of the 
kernels in the lot have skin color within the range of one or two color 
classifications.
0
58. Revise Sec.  51.1448 to read as follows:


Sec.  51.1448  Uniform in size.

    Uniform in size means that, in a representative sample of 100 
halves, the 10 smallest halves weigh not less than 25 percent as much 
as the 10 largest halves.
0
59. Revise Sec.  51.1449 to read as follows:


Sec.  51.1449  Fairly uniform in size.

    Fairly uniform in size means that, in a representative sample of 
100 halves, the 10 smallest halves weigh not less than one-half as much 
as the 10 largest halves.
0
60. Revise Sec.  51.1450 to read as follows:


Sec.  51.1450  Foreign material.

    Foreign material includes rocks, wood, glass, plastic, insects, or 
any similar material. It does not include hard shell, center wall, or 
pecan weevil larvae.
0
61. Remove the undesignated center heading preceding Sec.  51.1451.
0
62. Revise Sec.  51.1451 to read as follows:


Sec.  51.1451  Damage.

    Damage means any specific defect described in this section; or an 
equally objectionable variation of any one of these defects, or any 
other defect, or any combination of defects, which materially detracts 
from the appearance or the edible or marketing quality of the 
individual portion of the kernel or of the lot as a whole. The 
following defects shall be considered as damage:
    (a) Adhering material from inside the shell when attached to more 
than one-fourth of the surface on one side of the half-kernel or piece;
    (b) Dust or dirt adhering to the kernel when conspicuous;
    (c) Internal flesh discoloration of a medium shade of gray or brown 
extending more than one-fourth the length of the half-kernel or piece, 
or lesser areas of dark discoloration affecting the appearance to an 
equal or greater extent;
    (d) Kernel which is not well dried;
    (e) Kernel which is ``dark amber'' or darker color;
    (f) Kernel having more than one dark kernel spot, or one dark 
kernel spot

[[Page 33071]]

more than one-eighth inch in greatest dimension;
    (g) Poorly developed kernel; and
    (h) Shriveling when the surface of the kernel is very conspicuously 
wrinkled.
0
63. Add Sec.  51.1452 to read as follows:


Sec.  51.1452  Serious damage.

    Serious damage means any specific defect described in this section; 
or an equally objectionable variation of any one of these defects, or 
any other defect, or any combination of defects, which seriously 
detracts from the appearance or the edible or marketing quality of the 
individual portion of kernel or of the lot as a whole. The following 
defects shall be considered as serious damage:
    (a) Adhering material from inside the shell when attached to more 
than one-half of the surface on one side of the half-kernel or piece;
    (b) Any plainly visible mold;
    (c) Dark kernel spots when more than three are on the kernel, or 
when any dark kernel spot or the aggregate of two or more spots affect 
an area of more than 10 percent of the surface of the half-kernel or 
piece;
    (d) Dark skin discoloration, darker than ``dark brown,'' when 
covering more than one-fourth of the surface of the half-kernel or 
piece;
    (e) Decay affecting any portion of the kernel;
    (f) Insects, web, or frass or any distinct evidence of insect 
feeding on the kernel;
    (g) Internal discoloration, which is dark gray, dark brown, or 
black and extends more than one-third the length of the half-kernel or 
piece;
    (h) Rancidity when the kernel is distinctly rancid to the taste. 
Staleness of flavor shall not be classed as rancidity; and
    (i) Undeveloped kernel.
0
64. Add Sec.  51.1453 to read as follows:


Sec.  51.1453  Rancidity.

    Rancidity refers to the tendency of the oil in a pecan kernel to 
become tainted as a result of oxidation or hydrolysis. While there is 
no definitive measure to determine rancidity, the tendency of the 
kernel to become rancid can be evaluated by testing the kernel's 
peroxide and free-fatty acid values. Peroxide values should be less 
than 5 mEq/kg and free fatty acid should be less than 1%.
0
65. Add an undesignated center heading and Sec.  51.1454 to read as 
follows:

Metric Conversion Table


Sec.  51.1454  Metric conversion table.

                        Table 1 to Sec.   51.1454
------------------------------------------------------------------------
                                                            Millimeters
                         Inches                                (mm)
------------------------------------------------------------------------
32/64...................................................            12.7
28/64...................................................            11.1
24/64...................................................             9.5
20/64...................................................             7.9
16/64...................................................             6.4
12/64...................................................             4.8
8/64....................................................             3.2
6/64....................................................             2.4
5/64....................................................             2.0
4/64....................................................             1.6
------------------------------------------------------------------------


Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2022-10856 Filed 5-31-22; 8:45 am]
BILLING CODE P


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