National Organic Program; Market Development for Mushrooms and Pet Food

Published date11 March 2024
Record Number2024-04973
Citation89 FR 17322
CourtAgricultural Marketing Service
SectionProposed rules
Federal Register, Volume 89 Issue 48 (Monday, March 11, 2024)
[Federal Register Volume 89, Number 48 (Monday, March 11, 2024)]
                [Proposed Rules]
                [Pages 17322-17338]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2024-04973]
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                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.
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                Federal Register / Vol. 89, No. 48 / Monday, March 11, 2024 /
                Proposed Rules
                [[Page 17322]]
                DEPARTMENT OF AGRICULTURE
                Agricultural Marketing Service
                7 CFR Part 205
                [Doc. No. AMS-NOP-22-0063]
                RIN 0581-AE13
                National Organic Program; Market Development for Mushrooms and
                Pet Food
                AGENCY: Agricultural Marketing Service, USDA.
                ACTION: Proposed rule.
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                SUMMARY: The United States Department of Agriculture (USDA)
                Agricultural Marketing Service (AMS) proposes to amend the USDA organic
                regulations to clarify standards for organic mushrooms and organic pet
                food. Specific standards for these products do not currently exist.
                Instead, these products have been certified organic using the general
                organic standards for crops, livestock, and handling. However, this
                approach is not ideal as the current regulations do not address unique
                aspects of either product. AMS expects this rule would promote
                development of these markets by increasing regulatory certainty that
                would, in turn, encourage investment in the markets. The topics
                addressed by the proposed rule include sourcing of substrate and spawn
                in organic mushroom production, composting requirements for organic
                mushroom production, composition and labeling requirements for organic
                pet food, and the use of certain synthetic substances in organic pet
                food.
                DATES: Electronic or written comments on the proposed rule must be
                submitted by May 10, 2024.
                ADDRESSES: You may submit electronic comments on this proposed rule
                through the Federal eRulemaking Portal at https://www.regulations.gov
                (docket number AMS-NOP-22-0063). Instructions for submitting electronic
                comments are available at https://www.regulations.gov. Comments may
                also be sent by mail to: Erin Healy, Director, Standards Division,
                National Organic Program, USDA-AMS-NOP, 1400 Independence Ave. SW, Room
                2642-So., Ag Stop 0268, Washington, DC 20250-0268.
                 Instructions: All comments should include the docket number (AMS-
                NOP-22-0063), and/or the Regulatory Information Number (RIN 0581-AE13)
                for this rulemaking. You should clearly indicate the topic and section
                number of this proposed rule to which your comment refers, state your
                position(s), offer any recommended language change(s), and include
                relevant information and data to support your position(s) (e.g.,
                scientific, environmental, manufacturing, industry, or industry impact
                information, etc.). All comments and relevant background documents
                posted to https://www.regulations.gov will include any personal
                information provided.
                FOR FURTHER INFORMATION CONTACT: Erin Healy, Director, Standards
                Division, National Organic Program. Telephone: 202-720-3252. Email:
                [email protected].
                SUPPLEMENTARY INFORMATION:
                Table of Contents
                I. Executive Summary
                 A. Purpose and Need for the Rule
                 B. Summary of Provisions
                II. General Information
                 A. Does this proposed rule apply to me?
                 B. What should I consider as I prepare my comments for AMS?
                III. Background
                 A. Purpose and Need for the Rule
                 B. NOSB Recommendations on Mushrooms and Pet Food
                 C. Community and Stakeholder Feedback
                 D. Authority
                IV. Organic Mushroom Standard
                 A. Mushroom Background
                 B. Need for Organic Mushroom Standard
                 C. Overview of Proposed Amendments
                V. Organic Pet Food Standard
                 A. Pet Food Background
                 B. Need for Organic Pet Food Standard
                 C. Overview of Proposed Amendments
                VI. Regulatory Analyses
                 A. Executive Orders 12866, 13563, 14094, and the Regulatory
                Flexibility Act
                 B. Executive Order 112988
                C. Executive Order 113132
                D. Executive Order 113175
                E. Civil Rights Impact Analysis
                 F. Paperwork Reduction Act
                I. Executive Summary
                A. Purpose and Need for the Rule
                 This proposed rule would amend the USDA organic regulations to
                establish specific standards for organic mushroom production and
                organic pet food handling. Specific standards are necessary to resolve
                inconsistency and uncertainty in these two markets. AMS is addressing
                standards for pet food and mushrooms together in this rule because both
                markets are currently hampered by the lack of specific regulations that
                are suitable for these particular products. Both markets exhibit
                inconsistent interpretations of the organic regulations by certifiers
                and uncertainty around regulatory requirements that are likely to deter
                investments in the sectors. In addition, the National Organic Standards
                Board (NOSB) has made recommendations to revise the regulations for
                these organic products, and these changes are supported by the organic
                industry. Finally, both organic mushrooms and pet food are developing
                markets that would benefit from clearer standards to facilitate and
                promote growth.
                 The organic regulations do not currently include standards specific
                to mushrooms and pet food. Although some mushrooms and pet food
                products are currently being certified using the general organic
                standards, the current regulations are an imperfect fit for both
                mushroom and pet food production and do not address unique aspects of
                either product. For example, some certifying agents use the current
                crop production standards to certify organic mushrooms or the handling
                standards for processed products to certify organic pet food. In both
                cases, certifying agents and operations extrapolate from the organic
                standards to fit organic mushroom and pet food production. This creates
                varying and inconsistent interpretations of the organic regulations,
                such that some mushroom producers are required to use organic inputs
                where others are not, and some pet food manufacturers are allowed to
                use slaughter by-products where others are not. The inconsistent
                certification and enforcement practices for organic mushrooms and pet
                food fail to meet one of the purposes of the Organic Food Production
                Act (OFPA), that is, to assure consumers that organically produced
                products meet a consistent standard (7 U.S.C. 6501(2)).
                [[Page 17323]]
                 Additionally, the National Organic Program (NOP) has received
                feedback from stakeholders that the lack of specific standards for
                mushrooms and pet food creates uncertainty that may deter development
                in these markets. Clearer and more specific standards would give
                businesses certainty about how they should produce organic mushrooms
                and pet food, which would create the conditions necessary for the
                growth of the organic mushroom and pet food markets. Addressing
                uncertainty and inconsistency in organic mushroom and pet food
                production is important for market development. Ensuring consistent
                standards across the organic industry also protects the integrity of
                the organic seal by building customer trust in the label.
                B. Summary of Provisions
                 Through the amendments in this proposed rule, AMS would establish
                standards for organic mushroom production and pet food handling. The
                proposed rule would:
                 Add the term ``mushroom'' to the definitions of ``crop''
                and ``wild crop;''
                 Establish definitions for ``mushroom,'' ``mushroom
                substrate,'' ``mycelium,'' ``spawn,'' and ``spawn media;''
                 Create a new section titled Mushroom Production Practice
                Standard;
                 Require that operations use organic mushroom spawn and
                substrate when commercially available;
                 Add mushroom-specific requirements for organic compost
                production;
                 Establish definitions for ``pet'' and ``pet food'' for the
                purposes of the USDA organic regulations only;
                 Add a new paragraph to the organic handling standard
                describing the requirements for production and labeling of pet food,
                including composition (what can be included in organic pet food) and
                labeling requirements; and
                 Add synthetic taurine (an amino acid) to the National List
                to allow its use in organic pet food.
                II. General Information
                A. Does this proposed rule apply to me?
                 You may be affected by this proposed rule if you are engaged in
                organic mushroom production or pet food handling. Potentially affected
                entities may include, but are not limited to, the following:
                 Organic pet food manufacturers;
                 Organic mushroom producers;
                 Individuals or business entities that are considering
                organic certification for pet food or mushrooms;
                 Existing livestock, mushroom, and handling operations that
                are currently certified organic under the USDA organic regulations; and
                 USDA-accredited certifying agents, inspectors, and
                certification review personnel.
                 This list is not exhaustive but identifies key entities that this
                rule may affect. Other types of entities may also be affected. To
                determine whether you or your business may be affected by this action,
                you should carefully examine the regulatory text and discussion below.
                If you have questions regarding the applicability of this rule to a
                particular entity, contact the person listed under FOR FURTHER
                INFORMATION CONTACT.
                B. What should I consider as I prepare my comments for AMS?
                 AMS seeks comment from the public and organic stakeholders
                regarding the proposed amendments, especially on the following topics:
                 1. Is the regulatory language and accompanying discussion in this
                document clear enough to allow producers, handlers, and certifying
                agents to comply with the proposed requirements?
                 2. Do the proposed amendments create any conflict with current
                organic regulations?
                 3. Would a one-year implementation period (from the effective date
                of a final rule) be appropriate for affected operations to comply with
                these proposed changes? If not, what timeframe would be appropriate?
                 4. Are there any concerns about the proposed requirements for
                compost used in organic mushroom operations? Are there any additional
                health and sanitary issues that AMS has not considered? Would the
                proposed requirements hinder any current methods of substrate
                preparation? Would the proposed changes impact other organic sectors
                and if so, how?
                 5. Are there any concerns about the proposed requirements for
                producing certified organic spawn? What are the barriers to producing
                certified organic spawn for mushroom production? How would this rule
                affect these barriers?
                 6. Stakeholders and data indicate that many organically produced
                mushrooms are sold as conventional mushrooms. Why are certified organic
                mushroom operations producing significantly more organic mushrooms than
                they are selling as certified organic? What could be included in this
                rule to help ensure that mushrooms that are produced organically can be
                sold as organic?
                 7. What factors have kept pet food manufacturers from seeking
                organic certification? Are there barriers that the proposed rule does
                not address?
                 8. Are there any additional synthetic, nonsynthetic, or nonorganic
                substances required in pet food to meet pet health needs that are not
                included in the proposed rule?
                 9. Are slaughter by-products commonly used in organic pet food? Are
                there obstacles to greater use of organic slaughter by-products in
                organic pet food? Is there existing data on the organic slaughter by-
                product market utilization and prices?
                III. Background
                A. Purpose and Need for the Rule
                 This proposed rule would amend the USDA organic regulations to
                establish specific standards for organic mushroom production and
                organic pet food handling. The purpose of these amendments is to
                resolve uncertainty and inconsistency in how the organic regulations
                apply to these two products. Based on market penetration data and
                feedback from stakeholders, AMS believes that removing regulatory
                uncertainty as a barrier will create conditions that offer a reasonable
                expectation for growth in these two markets and other latent markets
                that support them, such as mushroom substrate and organic slaughter by-
                products.
                 New rulemaking is needed because the current organic regulations do
                not include standards specific to mushrooms and pet food. Some
                certifying agents certify organic mushrooms using the current crop
                production standards and some certify pet food using a combination of
                livestock feed standards and handling standards for processed products;
                however, the current regulations do not address the unique needs of
                either product. The current crop production standards are intended
                primarily for plant production and do not fully address the unique
                biology of mushrooms. This is because mushrooms are fungi, not plants,
                and have different production practices and materials requirements.
                Plants are usually grown outdoors and photosynthesize energy from the
                sun; however, mushrooms are most commonly grown in indoor, controlled
                environments and draw energy from substrate material. These biological
                and production differences mean the organic crop production standards
                do not always fit mushrooms well. Certifier requirements are
                [[Page 17324]]
                currently inconsistent, and producers may be inconsistently applying
                the organic standards to aspects such as substrate, spawn, and compost
                for mushroom production.
                 Similarly, the current organic regulations do not address pet food.
                Producers and certifiers apply a combination of the handling standards
                for processed products and the organic livestock feed standards, but
                their practices are not uniform. The handling standards are appropriate
                for verifying the processing, handling, product composition, and
                labeling requirements for multi-ingredient processed agricultural
                products but lack specific allowances for nutrients that are necessary
                for pets. The livestock feed standards include allowances for many of
                those nutrients but include prohibitions on common pet food
                ingredients, such as slaughter by-products. Slaughter by-products
                (e.g., animal and poultry by-product meal; animal liver) make up
                approximately 23 percent of the composition of conventional pet food,
                in part to meet protein levels required by federal and state
                regulations on pet food.\1\ Applying the livestock feed regulations to
                organic pet food production inhibits the market for organic slaughter
                by-products. These contradictions create uncertainty for businesses
                that currently produce organic pet food and are a barrier to businesses
                that would like to produce organic pet food or sell slaughter by-
                products into that market. AMS estimates that this rule could ensure
                consistent demand for over 14 million pounds of organic meat and
                organic slaughter by-products annually, with approximately half of that
                demand being for organic slaughter by-products. Based on feedback from
                stakeholders, AMS finds it likely that organic meat and slaughter by-
                product demand will grow over time beyond this estimate after
                implementation of specific rules.
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                 \1\ Institute for Feed Education & Research. (March 2020). ``Pet
                food production and ingredient analysis.''
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                 This rule would also address feedback from the organic industry,
                which has asked USDA to implement NOSB recommendations more generally,
                including implementing standards for these two products. AMS hosted a
                virtual prioritization listening session in spring 2022. Oral and
                written comments encouraged AMS to prioritize rulemaking for additional
                practice standards, including organic pet food and mushrooms. The
                proposed changes in this rule are based on NOSB recommendations for
                mushroom production and pet food handling in response to the organic
                industry's interest in further developing the organic standards.
                 Market penetration data supports the idea that the organic mushroom
                and organic pet food markets have a reasonable expectation of growth if
                uncertainty and inconsistency are removed as barriers. Both markets
                currently lag behind their most-comparable organic sectors. In 2021,
                sales of organic fruits and vegetables accounted for a 15.5 percent
                share of all fruit and vegetable sales in the United States,\2\ but
                organic mushrooms only accounted for 10.8 percent of all mushroom
                sales.\3\ Considering that the consumer experience of purchasing
                mushrooms is typically no different than purchasing fruits and
                vegetables (they are packaged similarly and found in the same section
                of the grocery store) it is reasonable to conclude that some external
                barrier is inhibiting the organic mushroom market. Similarly, organic
                pet food accounts for only 0.41 percent of all pet food sales, whereas
                sales of organic non-food products (the closest analog to pet food, as
                a product that is purchased not for humans to eat) accounted for 1.2
                percent of all non-food sales.\4\
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                 \2\ Organic Trade Association. (2022). Organic Industry Survey.
                p. 56. Note that AMS uses the 2021 data available in the Organic
                Trade Association's 2022 survey because that was the data available
                while our economic analysis was under development. The 2022 data
                (released in May 2023), however, also demonstrates lagging market
                penetration: Mushroom sales lagged the 14.9 percent share that
                organic fruits and vegetables claimed, and organic pet food
                accounted for only 0.38 percent of all pet food sales.
                 \3\ USDA, National Agricultural Statistics Service, Agricultural
                Statistics Board. (August 26, 2022). ``Mushrooms.'' https://www.nass.usda.gov/Publications/Todays_Reports/reports/mush0822.pdf.
                 \4\ Organic Trade Association. (2022). Organic Industry Survey.
                p. 5.
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                 In short, AMS believes that clear and consistent standards for
                organic mushrooms and pet food may create the conditions necessary for
                organic markets to develop. Regulatory certainty encourages investment
                in nascent markets; investment increases production capacity; and
                production enables market growth. Clear standards would promote growth
                in the development of these markets by increasing consistency in
                certification and enforcement and removing uncertainty as a regulatory
                barrier to production and certification. Additionally, growth in these
                markets is likely to ensure consistent demand for organic inputs in
                underdeveloped markets like organic meat and slaughter by-products.
                Because mushrooms and pet food have unique growing conditions and
                requirements, AMS provides additional discussion of the need for
                organic standards in each industry in their respective sections below
                (see ``IV. Mushrooms, B. Need for Organic Mushroom Standard'' and ``V.
                Pet Food, B. Need for Organic Pet Food Standard'').
                B. NOSB Recommendations on Mushrooms and Pet Food
                 Several times in its history, the NOSB has recognized the unique
                production needs of organic mushrooms and pet food and recommended
                standards specific to each market. The Board recommended organic
                mushroom standards in April 1995 \5\ and again in October 2001.\6\
                Subsequently, the NOSB made a recommendation on organic pet food
                standards in November 2008,\7\ and in April 2013, the NOSB proposed
                amending the National List to allow taurine for use in pet food.\8\
                This proposed rule is AMS's first rulemaking action related to these
                recommendations; we discuss the NOSB's recommendations below.
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                 \5\ NOSB. (April 24-28, 1995). ``Final minutes of the National
                Organic Standards Board full board meeting.'' http://www.dairyprogramhearing.com/getfile32e532e5.pdf?dDocName=STELPRDC5057442.
                 \6\ USDA, AMS. ``NOSB recommendations: Fall 2011.'' Accessed May
                8, 2023. https://www.ams.usda.gov/rules-regulations/organic/nosb/recommendations/fall2001.
                 \7\ The NOSB's November 2008 recommendation on organic pet food
                is available online at: https://www.ams.usda.gov/rules-regulations/organic/nosb/recommendations/fall2008.
                 \8\ USDA, NOP. (April 2013). ``The Organic Integrity
                Quarterly.'' https://www.ams.usda.gov/sites/default/files/media/NOP%202013%20April%20Newsletter.pdf.
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                NOSB Recommendations on Mushroom Production
                 In 2001, the NOSB recommended:
                 Preventing contact between organically produced mushrooms
                or mushroom growth substrates and prohibited substances;
                 Requiring the use of organic spawn when commercially
                available;
                 Requiring organically produced agricultural materials in
                mushroom substrate; and
                 Allowing nonorganic wood products (e.g., sawdust) in
                mushroom substrate if trees have not been treated with prohibited
                substances for three years prior to harvest and have not been treated
                with prohibited substances after harvest.
                 AMS investigated rulemaking following this recommendation but did
                not publish a proposed rule.
                [[Page 17325]]
                NOSB Recommendations on Pet Food
                 In November 2008, the NOSB recommended that organic claims on pet
                food should be regulated under a combination of organic livestock feed
                standards and organic processed products labeling requirements.\9\ The
                NOSB recommended:
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                 \9\ NOSB. (November 19, 2008). ``Formal recommendation by the
                National Organic Standards Board (NOSB) to the National Organic
                Program (NOP).'' https://www.ams.usda.gov/sites/default/files/media/NOP%20Final%20Rec%20Pet%20Food.pdf.
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                 Clarifying which animals the pet food requirements would
                apply to by defining ``pets'' in the regulations;
                 Labeling organic pet food using a framework consistent
                with labeling for organic human food, allowing the ``organic'' claim
                that requires a minimum of 95 percent organic ingredients and the
                ``made with organic (specified ingredients or food group(s))'' claim
                that requires a minimum of 70 percent organic ingredients;
                 Clarifying that organic slaughter by-products can be a
                component of organic pet food; and
                 Adding taurine for use in pet food to the National List of
                allowed synthetic substances.\10\
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                 \10\ The 2008 recommendation listed taurine and other additives
                as ``materials for possible petition to the National List for use in
                Pet Food.'' In 2013, the NOSB passed a motion to specifically
                recommend listing taurine ``as a feed additive for use in pet food,
                only.'' See NOSB. (April 11, 2013). ``Formal recommendation from:
                National Organic Standards Board (NOSB) to: the National Organic
                Program (NOP).'' https://www.ams.usda.gov/sites/default/files/media/NOP%20Livestock%20Final%20Rec%20Pet%20Food%20Amino%20Acid%20amended.pdf.
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                 This proposed rule is the first rulemaking action from AMS to
                address these recommendations on organic pet food.
                C. Community and Stakeholder Feedback
                 When developing this proposed market development rule, AMS
                considered industry and stakeholder requests for specific mushroom and
                pet food standards in addition to the NOSB recommendations. In March
                2022, the National Organic Program (NOP) hosted a public listening
                session to give stakeholders the opportunity to comment on NOP's
                rulemaking priorities.\11\ During the listening session, many
                stakeholders asked that AMS prioritize rulemaking for products that are
                currently being certified without standards specific to their unique
                production categories. This includes mushrooms and pet food. Several
                stakeholders specifically suggested developing mushroom standards and
                noted that existing crop standards, including compost requirements, are
                not appropriate for mushroom production. Similarly, some commenters
                discussed the importance of establishing consistent pet food standards,
                naming it as another product currently being certified without
                standards specific to its unique production demands.
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                 \11\ USDA, NOP. (March 21, 2022). ``National Organic Program
                priorities listening session.'' https://www.ams.usda.gov/event/national-organic-program-priorities-listening-session.
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                 AMS also engaged directly with mushroom experts, producers, and
                trade associations about organic mushroom production. These discussions
                affirmed that specific standards for the production and handling of
                organic mushrooms are needed. These industry stakeholders stated that
                recognizing mushrooms as a fungal crop cultivated under unique and
                specialized conditions would foster greater consistency in how organic
                mushrooms are cultivated and certified. AMS also learned what aspects
                of mushroom production need mushroom-specific requirements: compost
                requirements, origin and composition of substrate materials used for
                growing mushrooms, and origin and composition of spawn.
                 Discussions with experts in the pet food industry revealed that the
                key challenge with labeling pet food as organic is uncertainty around
                the allowance of certain ingredients. For example, under the current
                organic regulation, it is unclear if pet food manufacturers may use
                meat (e.g., edible part of animal muscle and organs) or slaughter by-
                products (e.g., animal and poultry by-product meal; animal liver) in
                organic pet food, and whether some necessary synthetic ingredients in
                pet food, such as taurine, are allowed. Inconsistencies in organic
                claims on pet food can also contribute to consumer uncertainty or
                mistrust of organic labels. Additionally, stakeholders have noted that
                allowing organic slaughter by-products in organic pet food would allow
                livestock producers and slaughter facilities to earn organic premiums
                for these organic slaughter by-products, which would otherwise be sold
                without a premium for use in nonorganic products. AMS estimates that
                this rule could ensure consistent demand for over 7 million pounds of
                organic slaughter by-products annually, which is likely to grow over
                time.\12\
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                 \12\ Data from the Institute for Feed Education & Research
                indicates that approximately 23 percent of the ingredient weight in
                conventional pet food is animal by-product and meal. This estimate
                is then applied to the estimate pounds of organic pet food as
                reported by the Organic Trade Association and current market prices.
                Institute for Feed Education & Research. (March 2020). ``Pet food
                production and ingredient analysis.'' Organic Trade Association.
                (2022). Organic Industry Survey. p. 56.
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                 Overall, this rulemaking incorporates several NOSB recommendations
                and stakeholder feedback to address the need for specific standards for
                mushrooms and pet food. Adding these specific standards is expected to
                support the development of organic markets for these industries by
                reducing uncertainty among certifiers, consumers, producers, and
                manufacturers.
                D. Authority
                 The Organic Foods Production Act of 1990 (OFPA) \13\ authorizes the
                USDA to promulgate regulations to establish an organic certification
                program for producers and handlers of agricultural products (7 U.S.C.
                6503(a)). This proposed rule would establish new production and
                certification standards for two products that currently lack specific
                standards. This proposed rule would, in turn, support the three
                purposes of OFPA: ``(1) to establish national standards governing . . .
                organically produced products; (2) to assure consumers that organically
                produced products meet a consistent standard; and (3) to facilitate
                interstate commerce in . . . food that is organically produced'' (7
                U.S.C. 6501). The proposed rule would clarify how producers and
                certifiers should interpret existing organic regulations as they
                pertain to mushroom or pet food production, which would assure
                consumers that the organic label on these products guarantees a
                consistent standard. The proposed rule would assure producers that they
                operate in a fair and competitive environment with clear rules that all
                must follow.
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                 \13\ The Organic Foods Production Act of 1990, 7 U.S.C. 6501-
                6524, is the statute from which the Agricultural Marketing Service
                derives authority to administer the NOP, and authority to amend the
                regulations as described in this proposed rule. This document is
                available at: https://uscode.house.gov/view.xhtml?path=/prelim@title7/chapter94&edition=prelim.
                ---------------------------------------------------------------------------
                 USDA administers organic standards through the Agricultural
                Marketing Service (AMS) National Organic Program (NOP). Final
                regulations establishing the NOP and the USDA organic regulations were
                published on December 21, 2000 (65 FR 80548) \14\ and were first
                implemented on October 21,
                [[Page 17326]]
                2002.\15\ Through these regulations, AMS oversees national standards
                for the production, handling, labeling, and sale of organically
                produced agricultural products.
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                 \14\ USDA, AMS. (December 21, 2000). ``National Organic
                Program.'' Final Rule. 65 FR 80548 (codified at 7 CFR part 205).
                https://www.federalregister.gov/documents/2000/12/21/00-32257/national-organic-program.
                 \15\ USDA, AMS. (March 20, 2001). ``National Organic Program;
                Correction of the effective date under Congressional Review Act
                (CRA).'' Final Rule. 66 FR 15619. https://www.federalregister.gov/documents/2001/03/20/01-6836/national-organic-program-correction-of-the-effective-date-under-congressional-review-act-cra.
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                IV. Organic Mushroom Standard
                A. Mushroom Background
                Mushroom Biology and Production
                 Mushrooms are the fleshy, spore-bearing, fruiting body of some
                species of fungus. Mushrooms grow from mycelium, which grows below the
                surface as a root-like network of cells. Commercial mushrooms are grown
                from spawn, a combination of mycelium and a media (like grains or
                minerals to carry the mycelium), in controlled indoor environments. In
                commercial mushroom production, spawn is introduced onto mushroom
                substrate to grow mushrooms, comparable to how seeds are planted to
                grow crops.
                 The mushroom lifecycle is a circular phenomenon that cultivators
                seek to mimic. In this cycle, spores germinate and then produce hyphae
                that form mycelium. Mycelium grows by consuming nearby organic material
                in the cropping container substrate. Fruiting (i.e., formation of
                mushrooms) occurs when particular conditions are met, such as when the
                mycelium is well developed, and the humidity and temperature conditions
                are favorable. The fruiting bodies (i.e., the mushrooms) then create
                more spores to continue the cycle.
                 Mushroom growers use spawn--a small amount of material with
                mycelium growing on it--to produce mushrooms. Spawn can be compared to
                plant seeds in an agricultural setting; however, an important
                distinction is that spawn lacks the energy storage of a seed. Seeds
                store energy to use during germination, whereas spawn must draw energy
                from substrate materials such as compost. Because of this dependence on
                the production substrate and the fact that spawn consumes the
                substrate, the materials used in it are an important part of the
                composition and growth of the mushrooms.
                 Mushroom substrate is generally made of composted and/or
                uncomposted materials, depending on the species of mushroom, and may
                contain grain, wood, vermiculite, or other ingredients. In mushroom
                production, inoculation refers to the introduction of spawn to mushroom
                substrate. Inoculation methods vary depending on the species of
                mushroom and the mushroom substrate material it grows on. Mycelium
                grows within the production substrate after it is inoculated,
                ultimately producing mushrooms. Depending on the type of mushroom,
                producers may sometimes harvest multiple crops of mushrooms from one
                batch of inoculated substrate. Once the production cycle is complete
                and mushrooms are harvested, a new batch of inoculated mushroom
                substrate is generally needed to produce a new batch of mushrooms.
                The U.S. Mushroom Market
                 For the 2021-2022 growing season, the U.S. mushroom crop volume was
                702 million pounds with sales of $1.02 billion.\16\ The Agaricus
                bisporus species of mushrooms accounted for approximately 97 percent of
                the total sales volume and approximately 93 percent of the total
                value.\17\ Agaricus includes white mushrooms (including common, button,
                and champignon varieties, among others) and brown mushrooms (including
                crimini/cremini, Swiss, Roman, Italian, and Portobello/Portabello/
                Portabella varieties, among others). Outside of the Agaricus varieties,
                there are a multitude of cultivated ``specialty'' mushrooms including
                shiitake, oyster, enoki, maitake, pompom, and others. Some of these
                specialty mushrooms include foraged (wild) mushrooms and specialty
                mushrooms that are intentionally cultivated outdoors. In 2021, 10.8
                percent of all mushrooms produced were sold as organic, compared to
                15.5 percent of all fruits and vegetables.18 19 Agaricus
                mushrooms accounted for approximately 82 percent of the total
                production volume of organic mushrooms; the remainder were specialty
                mushrooms.\20\
                ---------------------------------------------------------------------------
                 \16\ USDA, National Agricultural Statistics Service,
                Agricultural Statistics Board. (August 26, 2022). ``Mushrooms.''
                https://www.nass.usda.gov/Publications/Todays_Reports/reports/mush0822.pdf.
                 \17\ USDA, National Agricultural Statistics Service,
                Agricultural Statistics Board. (August 26, 2022). ``Mushrooms.'' .
                https://www.nass.usda.gov/Publications/Todays_Reports/reports/mush0822.pdf.
                 \18\ Organic Trade Association. 2022 Organic Industry Survey. p.
                56. https://ota.com/market-analysis/organic-industry-survey/organic-industry-survey.
                 \19\ USDA, National Agricultural Statistics Service,
                Agricultural Statistics Board. (August 26, 2022). ``Mushrooms.''
                https://www.nass.usda.gov/Publications/Todays_Reports/reports/mush0822.pdf.
                 \20\ USDA, National Agricultural Statistics Service,
                Agricultural Statistics Board. (August 26, 2022). ``Mushrooms.''
                https://www.nass.usda.gov/Publications/Todays_Reports/reports/mush0822.pdf.
                ---------------------------------------------------------------------------
                B. Need for Organic Mushroom Standard
                 This proposed rule would create specific standards for organic
                mushroom production to promote consistency, fair competition, and
                market growth. As of June 2023, at least 39 certifying agents certify
                272 organic mushroom operations.\21\ However, the lack of mushroom-
                specific standards means there is significant variation in how these
                operations are certified. About 75 percent of certifying agents that
                oversee organic mushroom production use the organic regulations' crop
                standards to certify mushrooms, and the remaining 25 percent either
                follow the NOSB's recommendations on mushrooms, or other standards such
                as those of the European Union. More specifically, some certifying
                agents require mushroom substrate to be organic, and some do not.
                Likewise, some certifying agents require spawn to be organic, and some
                do not.
                ---------------------------------------------------------------------------
                 \21\ USDA, Organic Integrity Database. https://organic.ams.usda.gov/Integrity/Home. Advanced search features can be
                accessed at https://organic.ams.usda.gov/Integrity/Search. Certified
                mushroom producers may be found by narrowing a certified product
                search for ``mushrooms'' to operations with a certification status
                of ``certified'' and limiting results to the ``Crops'' scope. Output
                was manually cleaned to remove unrelated entries.
                ---------------------------------------------------------------------------
                 A key challenge is that the organic crop standards are designed for
                terrestrial plants, while mushrooms are the fruiting bodies of fungi--a
                different kingdom of organisms. Fungi require different growing
                conditions than plants. Mushrooms are grown from spawn, not seed.
                Generally, mushrooms are not grown in soil like plants; they are grown
                in substrate material made of composted plant material, minerals,
                sawdust, and/or logs. Finally, mushrooms do not photosynthesize like
                plants; they absorb compounds from their environment to use as sources
                of energy.
                 The current organic regulations do not address the unique
                biological differences noted above. Specifically, the regulations lack
                detail and requirements for spawn, substrate, and compost used in
                organic production. Consequently, certifying agents have developed
                their own policies about spawn, substrate, and compost in mushroom
                production, leading to variation in how organic mushrooms are certified
                and creating confusion around what practices operations should use. The
                absence of consistent standards also creates an uneven playing field
                and encourages ``certifier shopping''--as operations learn about
                discrepancies,
                [[Page 17327]]
                they may pressure their certifier to change their interpretation of the
                standards or switch to another certifier.
                 Unfair competition caused by different interpretations of the
                organic mushroom standards, as well as the possibility of future
                regulatory changes, could reduce the willingness of businesses to
                invest in this sector. AMS aims to address these problems by developing
                one clear standard for organic mushroom production. Certifying agents
                would have clear rules to follow and competition among operations would
                be fairer. This would give businesses greater confidence in the
                stability of the industry and would encourage them to invest in organic
                mushroom growing operations and organic mushroom inputs.
                C. Overview of Proposed Amendments
                 This proposed rule would amend the USDA organic regulations (7 CFR
                part 205) by adding new provisions for producing mushrooms that are
                sold, labeled, or represented as organic. This action would prescribe
                consistent standards for producers of organic mushrooms, as detailed
                below.
                 Table 1--Overview of Proposed Regulatory Changes To Establish Organic
                 Mushroom Production Standard
                ------------------------------------------------------------------------
                 Section title Type of action Proposed action
                ------------------------------------------------------------------------
                205.2......................... Adds new terms... Mushroom; Mushroom
                 substrate; Mycelium;
                 Spawn; Spawn media.
                205.2......................... Amends existing Compost; Crop; Wild
                 terms. crop.
                205.210....................... Adds new section. Adds mushroom-
                 specific standards
                 to Subpart C.
                205.601....................... Amends language Replaces the term
                 at (i)-(j). ``plant'' with the
                 term ``crop''.
                ------------------------------------------------------------------------
                Sec. 205.2 (Terms Defined)
                 AMS proposes to amend Sec. 205.2 by adding five new terms
                (``mushroom,'' ``mushroom substrate,'' ``mycelium,'' ``spawn media,''
                and ``spawn'') and revising three existing terms (``compost,''
                ``crop,'' and ``wild crop''), as described below.
                1. Mushroom
                 AMS proposes to define ``mushroom'' as the fruiting body of a
                fungus. The term ``mushroom'' is primarily used to describe the
                agricultural product that consumers purchase.
                2. Mushroom Substrate
                 AMS proposes to define ``mushroom substrate'' as the base material
                from which mushrooms are cultivated or grown. This substrate acts as a
                media for fungus to grow on to produce mushrooms and provides the
                energy and nutrients required for mushrooms to grow. This substrate may
                be composed of composted material, uncomposted materials, or both, as
                described under Sec. 205.210(c).
                3. Mycelium
                 AMS proposes to define ``mycelium'' as a mass of branching, thread-
                like hyphae (fungal structures). Mycelium is the main body portion of a
                fungus from which mushrooms grow. In commercial mushroom production,
                mycelium is also used to colonize or inoculate spawn media to produce
                spawn and a subsequent crop of mushrooms.
                4. Spawn Media
                 AMS proposes to define ``spawn media'' as a carrier, such as grains
                or minerals, that, when colonized with fungal mycelium, creates spawn.
                Spawn media, once combined with mycelium, is defined separately as
                ``spawn.'' Grain, sawdust, and vermiculite are common ingredients in
                spawn media.
                5. Spawn
                 AMS proposes to define ``spawn'' as spawn media that has been
                colonized by fungal mycelium, which is used to inoculate mushroom
                substrate (i.e., mushrooms are not harvested from spawn). Spawn, a
                combination of mycelium and spawn media, is used to inoculate mushroom
                substrate. Mushrooms grow from mushroom substrate after spawn is
                applied to (and inoculates) the mushroom substrate.
                6. Compost
                 AMS proposes to simplify the definition of ``compost'' so that the
                definition would cover compost for use in mushroom production. The
                current definition of ``compost'' includes compost production
                requirements (e.g., minimum time and temperature) that are specific to
                plant production. However, compost for mushroom production is typically
                made using lower temperatures and shorter timeframes. The current
                definition of compost, with its plant production-specific details, is
                therefore not ideal for producers who need to create or use compost for
                mushroom production.
                 This rulemaking proposes to remove the plant production-specific
                composting requirements from the current definition of compost and add
                ``or substrate'' to the end of the definition. This leaves a general
                definition that allows the production of compost that meets the
                specific needs of either plants or mushrooms: the product of a managed
                process through which microorganisms break down plant and animal
                materials into more available forms suitable for application to the
                soil or substrate. Plant production-specific composting requirements
                remain in the regulation at Sec. 205.203(c)(2)--Soil fertility and
                crop nutrient management practice standard. This rule also adds
                mushroom-specific composting requirements, as described below in the
                section titled Mushroom production practice standard (Sec. 205.210).
                7. Crop and Wild Crop
                 AMS proposes to amend the terms ``crop'' and ``wild crop'' to
                include mushrooms. AMS proposes to include mushrooms in these
                definitions to clarify that operations may use certain crop production
                standards in subpart C to produce mushrooms.
                Sec. 205.210 (Mushroom Production Practice Standard)
                 AMS proposes to add a new section (Sec. 205.210) to the USDA
                organic regulations to describe production practice standards for
                organic mushrooms. Many of the existing production requirements in
                subpart C can be applied to mushroom production. However, because of
                their unique biology, mushroom production demands certain practices
                that are different from plant production. This new section clarifies
                which of the existing crop production requirements a mushroom producer
                should use and adds several mushroom-specific requirements.
                 AMS proposes in Sec. 205.210(a) that mushroom operations must
                manage their operations following most of the existing regulations
                governing crop production, including Sec. Sec. 205.200, 205.201,
                205.202 as applicable, 205.206(a)(2) and (3), and 205.206(b) through
                (f). These sections cover general production requirements (Sec.
                205.200); organic production and handling system plans (Sec. 205.201);
                land requirements
                [[Page 17328]]
                (Sec. 205.202); and crop pest, weed, and disease management (Sec.
                205.206). Organic mushroom operations, like all other organic
                operations, must have an organic system plan that describes how the
                operation complies with applicable parts of the USDA organic
                regulations.
                 Because mushrooms have unique biology and production needs, not all
                existing crop production requirements apply to organic mushroom
                production. This means that mushroom operations do not need to follow
                all the requirements in the soil fertility and crop nutrient management
                practice standard at Sec. 205.203, the seeds and planting stock
                practice standard at Sec. 205.204, or the crop rotation practice
                standard at Sec. 205.205. Unlike plants, which acquire energy from
                photosynthesis, mushrooms absorb sources of energy (like sugars and
                other organic compounds) from their surroundings. Therefore, most of
                the soil fertility and nutrient management practices in Sec. 205.203
                are not appropriate for mushroom production. However, mushroom
                producers would have to follow the same nutrient management
                requirements as plant producers described in Sec. 205.203(d)(1)
                through (5) and (e). These paragraphs describe acceptable and
                prohibited forms of nutrient management.
                 Similarly, mushroom production does not involve seeds or planting
                stock, and mushrooms are not grown in rotations for fertility or
                disease suppression, so Sec. Sec. 205.204-205.205 are not appropriate
                for mushroom production.
                 Proposed paragraph 205.210(b) would require operations to manage
                mushroom substrates and spawn media in a way that avoids environmental
                contamination. AMS proposes that mushroom substrates, spawn media,
                spent mushroom substrates, and spent spawn media must be managed to
                avoid the contamination of any mushrooms, spawn, substrate, soil, or
                water by pathogenic organisms, heavy metals, or residues of prohibited
                substances. This provision aligns with the requirement in Sec.
                205.203(c), which requires operations to prevent environmental
                contamination from materials applied to soil. Likewise, this proposed
                requirement also aligns with the requirement in Sec. 205.200 to
                protect natural resources. Section 205.210(b) would require operations
                to handle materials in a way that avoids contamination throughout the
                entire mushroom production process, from spawn creation, to growing
                mushrooms, to disposal of spent substrate.
                 Operations that only produce organic spawn and do not produce
                organic mushrooms would also be subject to the provisions in paragraph
                (b). Spawn media is usually incorporated into the substrate when spawn
                is applied to a mushroom production bed. In cases where a spawn
                producer decides not to use a batch of spawn and disposes of the spawn,
                the operations would need to dispose of spent spawn media in a manner
                that avoids contamination of mushrooms, spawn, substrate, soil or water
                by pathogenic organisms, heavy metals, or residues of prohibited
                substances.
                 In Sec. 205.210(c), AMS proposes requirements for what mushroom
                substrate and spawn media can be made of and what materials may be used
                in substrate production. This proposed paragraph is divided into
                subparagraphs to address the acceptable use of four types of materials:
                composted plant and animal materials, uncomposted plant materials, non-
                agricultural natural substances, and synthetic substances.
                 Proposed paragraph (c)(1) describes requirements for composted
                plant and animal materials for use in mushroom substrate and spawn
                media. This section details time, temperature, and composition
                requirements for composting plant and animal materials for use in
                mushroom production. The proposed rule would require that compost
                feedstock reach at least 131 [deg]F for at least three days during the
                composting process. The compost must not be treated with any prohibited
                substances per the existing requirements at Sec. 205.203(e)(1). AMS
                does not propose a maximum temperature for mushroom compost production.
                The proposed mushroom compost requirements are consistent with industry
                standards. The proposed minimum temperature requirement would allow
                mushroom producers the flexibility to compost their feedstock at higher
                temperatures for a longer period if warranted.
                 AMS proposes in Sec. 205.210(c)(2) that uncomposted plant
                materials for use in mushroom substrate and spawn media must be
                organically produced if commercially available. However, nonorganically
                produced uncomposted plant materials may be used in mushroom production
                when an equivalent organically produced variety is not commercially
                available. In this case, prohibited substances may not be applied to
                the nonorganically produced uncomposted plant materials after harvest.
                Certifiers must use the definition of commercial availability in Sec.
                205.2 to validate an operation's claim that organically produced plant
                materials necessary for mushroom production are not commercially
                available.
                 Paragraphs (c)(3) and (4), together with the proposed amendment to
                the definition of ``crop'' in Sec. 205.2 to include mushrooms, would
                allow mushroom operations to use natural (nonsynthetic) substances and/
                or synthetic substances in accordance with the National List of Allowed
                and Prohibited Substances for organic crop production. These provisions
                are appropriate for crop operations and are consistent with the
                framework in Sec. 205.105(a) and (b) regarding allowed and prohibited
                substances in organic production. Paragraph (c)(3) would allow the use
                of natural (nonsynthetic) substances in mushroom substrate and spawn
                media. Examples include mined gypsum, chalk, and clay. However,
                operations must not use nonsynthetic substances prohibited for use in
                organic production in Sec. 205.602 of the National List. Paragraph
                (c)(4) would also permit the use of synthetic substances allowed for
                use in organic crop production listed at Sec. 205.601 of the National
                List. Examples include sanitizers, including chlorine products (like
                sodium hypochlorite) and hydrogen peroxide; micronutrients listed at
                Sec. 205.601(j)(7); and microcrystalline cheesewax (which is on the
                National List at Sec. 205.601(o)(1) and annotated for use as a
                production aid exclusively in log-grown mushrooms). Use of these
                substances in mushroom substrate and spawn media must also follow all
                applicable substance-specific restrictions included in the National
                List. Paragraph (c)(4), along with the proposed revision to the
                definition of ``crop'' in Sec. 205.2 to include mushrooms, would
                enable mushroom operations to select from the already familiar list of
                substances allowed in crop production.
                 AMS proposes in Sec. 205.210(d) that spawn used in organic
                mushroom production must be organic. Organic spawn must (1) use organic
                agricultural products (e.g., organic grain) in the spawn media and (2)
                the spawn must be under continuous organic management once mycelium is
                applied to the organic spawn media. However, if organic spawn is not
                commercially available, an operation may use nonorganic spawn to
                produce a crop of organic mushrooms. Certifiers must use the definition
                of commercial availability in Sec. 205.2 to validate an operation's
                claim that organic spawn is not commercially available.
                Sec. 205.601 (National List)
                 Finally, AMS proposes to update Sec. 205.601 to clarify that
                mushrooms are within the scope of organic crop production. The current
                regulations at Sec. 205.601(i) and (j) use the phrases ``As
                [[Page 17329]]
                plant disease control'' and ``As plant or soil amendments'' to describe
                types of synthetic substances, grouped by function, that may be used in
                organic crop production. AMS proposes to replace the term ``plant''
                with ``crop'' in these phrases. Because AMS is proposing to revise the
                definition of crop (Sec. 205.2) to include mushrooms, the proposed
                changes would allow the use of the materials on the National List in
                paragraphs (i) and (j) in mushroom production. This is discussed in
                additional detail above (see Sec. 205.210(c)(3) and (4)). AMS notes
                that certifying agents who currently apply the crop production
                standards to mushroom production currently permit these substances in
                mushroom production.
                V. Organic Pet Food Standard
                A. Pet Food Background
                 AMS proposes in this rule to regulate organic claims on pet food
                using the existing regulatory framework for processed organic products
                (Sec. 205.270, Organic handling requirements) to clarify the
                composition and labeling requirements for organic pet food. These
                amendments would allow organic pet food to be labeled and sold as
                ``100% organic,'' ``organic,'' or ``made with organic (specified
                ingredients or food group(s)).'' The proposed changes would clarify
                that pet food is distinct from livestock feed, which has its own
                composition and labeling requirements (see Sec. Sec. 205.237 and
                205.301(e)). This proposed rule defines ``pet'' as ``Any domestic
                animal not used for the production and sale of food, fiber, or other
                agricultural-based consumer products.'' The rule defines ``pet food''
                as ``Any commercial feed prepared and distributed for pet
                consumption.'' Throughout this proposed rule, the term ``pet food'' is
                used to refer to all pet foods, including food for pets other than dogs
                and cats, unless otherwise noted. Feed for zoo animals (such as large
                cats) falls outside the scope of the proposed definitions for pet food,
                since zoo animals fall outside the definition of ``pet''--they are not
                domestic animals.
                 This rule proposes to regulate only the organic claims of organic
                pet food: specifically, what it can contain and how it must be labeled.
                Other aspects of the manufacture, marketing, and sale of pet food--
                including its healthfulness and safety, nutritional value and
                composition, and suitability for pets--fall under the Food and Drug
                Administration's (FDA) authority. All pet food manufacturers, organic
                or otherwise, must comply with relevant federal and state regulations
                pertaining to pet food safety. The framework for pet food regulation,
                summarized below, provides context for several provisions in the
                proposed organic pet food standards.
                Pet Food Regulations
                 Pet food labels are regulated at the federal and state levels. At
                the federal level, the FDA is responsible for overseeing and enacting
                the requirements of the Federal Food, Drug, and Cosmetic Act (FD&C
                Act), which requires that pet food be safe, properly manufactured, and
                adequately labeled.\22\ The FDA requires certain information on all
                animal feed labels: proper identification of the product, net quantity
                statement, name and place of manufacturer or distributor, and a proper
                listing of all ingredients.\23\ Some states enforce their own labeling
                regulations in addition to those administered by FDA. Most of these
                states follow the recommendations of the Association of American Feed
                Control Officials (AAFCO), an independent trade organization. They
                require a product name that complies with AAFCO pet food labeling
                rules, the species of pet for which the product is intended, a
                guaranteed analysis showing the basic nutrient composition, and in some
                cases a statement of nutritional adequacy and feeding directions.\24\
                ---------------------------------------------------------------------------
                 \22\ FDA. (February 17, 2022). ``FDA's regulation of pet food.''
                https://www.fda.gov/animal-veterinary/animal-health-literacy/fdas-regulation-pet-food.
                 \23\ FDA. (February 3, 2023). ``Pet food.'' https://www.fda.gov/animal-veterinary/animal-food-feeds/pet-food. FDA's animal food
                labeling regulations are located at 21 CFR part 501.
                 \24\ AAFCO. ``Labeling & labeling requirements.'' Accessed May
                1, 2023. https://www.aafco.org/resources/startups/labeling-labeling-requirements/.
                ---------------------------------------------------------------------------
                 Pet food is often formulated as a complete nutrition product--i.e.,
                the sole source of nourishment for pets. It typically contains
                ingredients from agricultural sources and supplemental nutrients to
                meet the nutrient requirements of the animal. These ingredients
                (including supplemental nutrients) do not require FDA's pre-market
                approval if they are on an FDA-maintained list of ingredients Generally
                Recognized As Safe (GRAS).\25\ The National Academy of Sciences'
                National Research Council (NRC) and AAFCO provide information on the
                nutrient requirements of dogs and cats at each stage of life (e.g.,
                growth, reproduction, adult maintenance) to guide the formulation of
                nutritionally adequate pet foods. The NRC has listed and described
                essential nutrients in its 2006 publication, ``Nutrient Requirements of
                Dogs and Cats.'' \26\ AAFCO maintains on its website more recently
                updated Nutrient Profiles for the various stages of life. The minimum
                nutrient levels specified in the AAFCO Nutrient Profiles are generally
                consistent with NRC Nutrient Requirement tables and are updated
                periodically as NRC recommendations change.
                ---------------------------------------------------------------------------
                 \25\ FDA. (August 4, 2023). ``Current animal GRAS notices
                inventory.'' https://www.fda.gov/animal-veterinary/generally-recognized-safe-gras-notification-program/current-animal-food-gras-notices-inventory.
                 \26\ NRC. (2006). ``Nutrient requirements of dogs and cats.''
                https://nap.nationalacademies.org/catalog/10668/nutrient-requirements-of-dogs-and-cats.
                ---------------------------------------------------------------------------
                 This proposed rule would not supersede the requirements of the FDA
                or state regulatory bodies, including nutrient requirements established
                according to the guidance of NRC or AAFCO. Instead, this rule is
                intended to work jointly with those requirements and more narrowly
                regulate what manufacturers must do to label their pet food ``organic''
                or claim it is ``made with organic (specified ingredients or food
                group(s)).'' Additionally, by including organic pet food in the organic
                regulations, the proposed rule would clarify the process for adding
                substances to the National List specifically for use in organic pet
                food. Future amendments to the National List could be made, as
                necessary, in accordance with the process, requirements, and criteria
                described in OFPA (see 7 U.S.C. 6517 and 6518).
                Organic Pet Food Industry and Market
                 The U.S. pet food market is a large and growing market in the
                United States. According to recent data from the American Pet Products
                Association (APPA), 66 percent of U.S. households own a pet, which is
                around roughly 86.9 million homes.\27\ In 2022, the pet food market in
                the United States was valued at $58.1 billion and is projected to
                increase to $62.7 billion in 2023. While the conventional pet food
                market is already substantial, the organic pet food market is
                relatively new, with few organic brands able to penetrate the market.
                In 2022, the organic pet food market was valued at $129 million but had
                substantial growth of 5.3 percent over 2021, which was the highest
                recorded growth since 2013.\28\ As of 2021, the organic pet food market
                is still less than one percent of the total pet
                [[Page 17330]]
                food market,\29\ and AMS believes there is potential for further
                growth.
                ---------------------------------------------------------------------------
                 \27\ American Pet Products Association. ``Pet industry market
                size, trends & ownership statistics.'' Retrieved May 5, 2023.
                https://www.americanpetproducts.org/press_industrytrends.asp.
                 \28\ Organic Trade Association. 2022 Organic Industry Survey. p.
                108. https://ota.com/market-analysis/organic-industry-survey/organic-industry-survey.
                 \29\ Organic Trade Association. 2022 Organic Industry Survey. p.
                108.
                ---------------------------------------------------------------------------
                 AMS expects that as the number of organic options for pets
                increases, an untapped market of organic consumers may seek out and
                purchase organic pet food for the same reasons that they purchase other
                organic foods. Additionally, demand for pet food was driven up by the
                COVID-19 pandemic when many people chose to adopt pets while living and
                working from home. According to an American Society for the Prevention
                of Cruelty to Animals (ASPCA) survey, around 23 million homes (nearly
                one in five homes in the United States) adopted a cat or dog during the
                pandemic.\30\
                ---------------------------------------------------------------------------
                 \30\ ASPCA. ``New ASPCA survey: Vast majority of dogs and cats
                acquired during pandemic still in their homes.'' Retrieved May 5,
                2023. https://www.aspcapro.org/resource/new-aspca-survey-vast-majority-dogs-and-cats-acquired-during-pandemic-still-their-homes.
                ---------------------------------------------------------------------------
                 Most dry and wet pet foods are multi-ingredient products because
                multiple ingredients are needed to meet the nutritional needs of a pet.
                The multi-ingredient nature of most pet foods creates a challenge for
                manufacturers--the organic regulations describe requirements for
                processed human food, but it is not clear if pet food should follow the
                same rules. In addition, there is uncertainty about which ingredients
                are allowed and how certain ingredients can be used in organic pet
                food. An example is synthetic taurine, which is a necessary ingredient
                in some pet food, but is not on the National List for use in organic
                pet food. This limits the types of pet food that can be certified as
                organic to single-ingredient pet food and treats, in turn limiting the
                size of the organic pet food market overall. Revising the organic
                regulations to clearly state how pet food can be labeled organic would
                allow companies to produce multi-ingredient dry and wet food products
                that are certified organic and still meet the complete nutritional
                needs of pets. Additionally, under the current organic regulations, it
                is unclear if pet food manufacturers may use meat or slaughter by-
                products in organic pet food, which likely limits the production of
                organic pet food. AMS expects that these changes would encourage
                additional growth in the small organic pet food market and other latent
                organic markets that support it, such as organic slaughter by-products.
                B. Need for Organic Pet Food Standard
                 The lack of specific standards for organic pet food creates
                inconsistency and uncertainty around labeling and composition
                requirements for organic pet food. These regulatory gaps increase the
                risk for businesses in the organic pet food market, hinder production
                innovation, and limit the market for organic slaughter by-products.
                 For example, some certifying agents have used the composition
                requirements for organic livestock feed (Sec. 205.301(e)) to certify
                pet food as organic, but livestock feed produced under the organic
                standards may not sufficiently address pets' nutrient needs.
                Specifically, the organic livestock feed composition requirements
                (Sec. 205.301(e)(2)) state that livestock feed must be produced ``in
                conformance with Sec. 205.237.'' Section 205.237(a) requires that all
                agricultural ingredients be organically produced and handled, and Sec.
                205.237(b)(5) prohibits feeding slaughter by-products to mammals or
                poultry; however, slaughter by-products are a commonly used protein
                source in pet food. Furthermore, although the organic livestock feed
                standards allow the use of vitamins and minerals (Sec. 205.603(d)),
                the composition requirements for livestock feed do not allow certain
                synthetic amino acids that are commonly used in pet food, such as
                taurine. In some cases, certifying agents may not adhere strictly to
                the livestock feed standards and some may allow organic slaughter by-
                products while others do not. This type of inconsistency creates
                uncertainty for companies considering entering the market. It also
                reduces the organic premiums that livestock producers and
                slaughterhouses could otherwise gain.
                 While some certifying agents have used the composition requirements
                for organic livestock feed (Sec. 205.301(e)) to certify pet food as
                organic, others have used only the handling standards in Sec. 205.270
                to certify pet foods as organic. These standards allow organic
                ingredients (e.g., organic slaughter by-products) and allow nonorganic
                ingredients that appear on the National List at Sec. Sec. 205.605 and
                205.606, but the standards do not explicitly allow the vitamin and
                mineral ingredients that appear on the National List for livestock
                production at Sec. 205.603(d).
                 This proposed rule would resolve these problems by, first,
                establishing that pet food is not to be regulated as organic livestock
                feed and thereby allowing organic slaughter by-products in organic pet
                food. Allowing slaughter by-products in organic pet food would also
                increase demand for certified organic slaughter by-products and create
                new income streams for organic livestock producers and slaughterhouses.
                Second, the proposed rule would clarify that vitamins, minerals, and
                taurine are allowed ingredients in organic pet food. Third, the rule
                would clarify that certain nonorganic content is permitted in pet food,
                in accordance with the labeling categories at Sec. 205.301(a) through
                (d).
                 The product that forms the largest share of the entire pet food
                market--kibble \31\ or dry ``complete and balanced'' \32\ pet food
                intended to supply a pet's daily nutritional needs--is a processed
                product, but the current handling regulations do not allow additive
                nutrients and vitamins (such as taurine) that pets need to meet
                nutritional requirements. The proposed rule would resolve this problem
                by explicitly allowing the vitamin and mineral feed additives
                referenced in Sec. Sec. 205.603(d)(2) and (3) for use in pet food and
                by adding taurine to the National List in Sec. 205.605(b) as an
                allowed substance in pet food. The natural form of taurine, which is
                present in raw meat, is lost when heated--a step in the processing of
                many pet food products.\33\ Because of this, synthetic forms of taurine
                are often added to certain pet foods. By adding synthetic taurine to
                the National List for use in organic pet food only, this proposed rule
                would provide for the use of taurine in organic pet food.
                ---------------------------------------------------------------------------
                 \31\ Kibble was 62.8 percent of all pet food sales in 2020. Pet
                Food Processing. (December 1, 2020). ``State of the US pet food and
                treat industry, 2020.'' https://www.petfoodprocessing.net/articles/14294-state-of-the-us-pet-food-and-treat-industry-2020.
                 \32\ FDA. (February 28, 2020). ``Complete and Balanced Pet
                Food.'' https://www.fda.gov/animal-veterinary/animal-health-literacy/complete-and-balanced-pet-food.
                 \33\ Spitze, A.R., Wong, D.L., Rogers, Q.R., & Fascetti, A.J.
                (2003). ``Taurine concentrations in animal feed ingredients; cooking
                influences taurine content.'' Journal of Animal Physiology and
                Animal Nutrition, 87(7-8), 251-262.
                ---------------------------------------------------------------------------
                 Additionally, this proposed rule would regulate pet food under the
                composition and labeling requirements for processed products referenced
                in Sec. 205.270. This would allow producers to use both the
                ``organic'' and ``made with organic (specified ingredient or food
                group(s))'' labeling claims on multi-ingredient products that contain
                some nonorganic content. These two labeling claims are regulated under
                the USDA organic regulations (Sec. Sec. 205.301, 205.303, and 205.304)
                and are used extensively by certified organic handlers. ``Organic''
                products must contain at least 95 percent organic ingredients, while
                ``made with organic'' products must contain at least 70 percent organic
                ingredients. In both cases, any nonorganic ingredient(s) must also meet
                specific criteria.\34\ This
                [[Page 17331]]
                proposed rule would provide pet food manufacturers flexibility to use
                organic ingredients in a ``made with organic'' pet food product without
                having to reach the higher 95 percent ingredient threshold for
                ``organic'' products. This clarification would allow pet food companies
                to increase organic content in their product line.
                ---------------------------------------------------------------------------
                 \34\ USDA, AMS. (April 2018). ``Organic Labels Explained.''
                https://www.ams.usda.gov/sites/default/files/media/OrganicLabelsExplained.png.
                ---------------------------------------------------------------------------
                 Finally, under the current organic regulations, it is unclear if
                pet food manufacturers may use meat or slaughter by-products in organic
                pet food, limiting the production of pet food and demand for organic
                slaughter by-products based on certifier interpretation. AMS estimates
                that by clarifying slaughter by-products are allowed, this rule will
                allow for more flexible and affordable organic pet food options and
                could ensure consistent demand for over 7 million pounds of organic by-
                products annually.\35\ Based on feedback from stakeholders, AMS finds
                it likely that this clarification will also increase growth in these
                markets.
                ---------------------------------------------------------------------------
                 \35\ Data from the Institute for Feed Education & Research
                indicates that approximately 23 percent of the ingredient weight in
                conventional pet food is animal by-product and meal. This estimate
                is then applied to the estimate pounds of organic pet food as
                reported by the Organic Trade Association and current market prices.
                 Institute for Feed Education & Research. (March 2020). ``Pet
                food production and ingredient analysis.'' Organic Trade
                Association. (2022). Organic Industry Survey. p. 56.
                ---------------------------------------------------------------------------
                 In conclusion, this rule would address inconsistencies in how
                certifying agents are applying the current organic regulations to pet
                food. It would also resolve regulatory uncertainties that artificially
                increase risk in the organic pet food market. Addressing these
                inconsistencies and uncertainties would create the conditions necessary
                for the organic pet food and related markets to grow.
                C. Overview of Proposed Amendments
                 This proposed rule would amend the USDA organic regulations (7 CFR
                part 205) by defining ``pet'' and ``pet food'' in the regulations and
                adding a new paragraph for pet food in Sec. 205.270, organic handling
                requirements. This action would integrate organic pet food standards
                into existing USDA organic labeling categories for agricultural
                products (subpart D of part 205) and specify the ingredients that can
                be included in pet food labeled ``organic'' or ``made with organic
                (specified ingredients or food group(s)).'' Table 2 provides a summary
                of the proposed amendments to the USDA organic regulations to
                incorporate pet food composition and labeling standards.
                 Table 2--Overview of Proposed Regulatory Changes To Establish Pet Food
                 Standards
                ------------------------------------------------------------------------
                 Summary of proposed
                 Section title Type of action action
                ------------------------------------------------------------------------
                205.2......................... Adds new terms... Defines terms ``pet''
                 and ``pet food''.
                205.270....................... Adds new Adds composition and
                 paragraph. labeling
                 requirements
                 specific to pet
                 food.
                205.605(b).................... Adds substance to Adds taurine to the
                 the National National List as an
                 List. allowed ingredient
                 in pet food.
                ------------------------------------------------------------------------
                Sec. 205.2 (Terms Defined)
                 AMS is proposing to amend Sec. 205.2 by adding two new terms,
                ``pet'' and ``pet food.''
                1. Pet
                 AMS is proposing to define ``pet'' as ``any domestic animal not
                used for the production and sale of food, fiber, or other agricultural-
                based consumer products.'' This term establishes a distinction between
                animals raised as pets and animals raised for food or fiber (i.e.,
                ``livestock,'' as defined at Sec. 205.2). Animals used for food or in
                the production of food, fiber, feed, or other agricultural-based
                consumer products are ``livestock'' under the USDA organic regulations
                (Sec. 205.2) and must be produced under all applicable organic
                livestock requirements. Feed requirements for organic livestock are
                described at Sec. 205.237 and would not apply to organic pet food, and
                vice versa.
                 By creating a regulatory distinction between pets and other animals
                whose feed is subject to organic regulation, the proposed rule would
                allow organic pet food to contain organic slaughter by-products (except
                when prohibited by Federal or State laws and regulations, see proposed
                Sec. 205.270(c)). This distinction is significant for pet food
                production because current regulations do not allow slaughter by-
                products in livestock feed (Sec. 205.237(b)(5)), but slaughter by-
                products are commonly used as a protein source in pet food.
                Additionally, organic livestock must consume only organic agricultural
                products (Sec. 205.237(a)), whereas the proposed rule would allow
                nonorganic agricultural ingredients to be used in pet food under the
                same labeling categories as other processed organic foods. Together,
                these clarifications are expected to increase the types of usable
                ingredients in organic pet food production and increase the commercial
                viability of organic pet food.
                2. Pet Food
                 AMS is proposing to define ``pet food'' as ``any commercial feed
                prepared and distributed for pet consumption.'' The proposed definition
                for ``pet food'' distinguishes organic pet food products from organic
                livestock feed products. This action is consistent with the NOSB
                recommendation.\36\ It also addresses a concern expressed by pet food
                manufacturers that applying the livestock feed composition requirements
                to pet food could limit product formulation and participation in the
                organic market because of the lack of available organic protein
                sources, particularly rendered products such as poultry meal. Unless
                otherwise noted, the term ``pet food'' refers to all pet foods,
                including food for pets other than dogs and cats. Feed for zoo animals
                (such as large cats) is not included in the proposed definition, as zoo
                animals are not domestic animals and therefore fall outside the
                definition of ``pets.''
                ---------------------------------------------------------------------------
                 \36\ NOSB. (November 19, 2008). ``Formal recommendation by the
                National Organic Standards Board (NOSB) to the National Organic
                Program (NOP): Organic pet food standards recommendation.'' https://www.ams.usda.gov/sites/default/files/media/NOP%20Final%20Rec%20Pet%20Food.pdf.
                ---------------------------------------------------------------------------
                Sec. 205.270 (Organic Handling Requirements)
                 This proposed rule would add a new paragraph (c) to Sec. 205.270--
                Organic handling requirements--to describe requirements for the
                composition, processing, and labeling of organic pet food. The
                requirements would permit the types of processing allowed in paragraph
                (a) and the types of nonorganic ingredients allowed in paragraph (b)
                and proposed paragraph (c), and prohibit the practices and materials
                not allowed in paragraph (d) (please note that the proposed rule would
                redesignate, or rearrange, current paragraph (c) of this section as
                [[Page 17332]]
                paragraph (d)). By including pet food criteria as part of the handling
                standards but clearly separating the criteria from the livestock feed
                composition and labeling standards, the proposed rule would ensure that
                pet food is not subject to the prohibition of slaughter by-products
                that exists for livestock feed. The proposed rule would allow slaughter
                by-products in pet food under the same composition and labeling
                requirements for other multi-ingredient products described at Sec.
                205.301(a) through (d) and (f).
                 Paragraph (b) would permit organic pet food, like any other
                processed organic product, to contain nonagricultural and nonorganic
                substances allowed by the National List in Sec. 205.605 (such as
                taurine, as proposed) and Sec. 205.606. These ingredients may be used
                in processed pet food products sold as ``organic'' or ``made with
                organic (specified ingredients or food group(s)).'' Additionally, the
                proposed rule would allow vitamins and minerals in Sec. 205.603(d)(2)
                and (3) for enrichment or fortification of pet food. Vitamins and
                minerals are often required to meet the nutritional needs of pets.
                 The proposed rule would also clarify that pet food labeled as
                organic must be labeled pursuant to the applicable portions of subpart
                D of the organic regulations (proposed Sec. 205.270(c)). In
                particular, this means that organic pet food should be labeled
                according to the product composition requirements at Sec. 205.301(a)
                through (d), and that pet food may use the following labeling
                categories: (1) ``100 percent organic;'' (2) ``organic,'' (3) ``made
                with organic (specified ingredients or food group(s));'' or (4)
                products containing less than 70 percent organic ingredients. This
                proposed action would allow the labeling of organic pet food using the
                same framework as most processed organic products (rather than the
                labeling requirements for livestock feed at Sec. 205.301(e)).
                 The proposed changes to Sec. 205.270 would not replace or modify
                requirements pertaining to pet food that are applicable under other
                federal or state laws or regulations. Any ingredients in pet food must
                comply with all applicable federal and state laws and regulations. AMS
                only regulates the organic claims of organic pet food. All other
                aspects of pet food production and sale must follow the relevant
                federal and state laws and regulations.
                Sec. 205.605 (National List)
                 AMS proposes to modify the National List to allow the use of
                synthetic taurine in pet food. The rule proposes to add taurine to
                Sec. 205.605, which describes nonagricultural substances allowed as
                ingredients in or on processed products labeled as ``organic'' or
                ``made with organic (specified ingredients or food group(s)).'' The
                proposed listing for taurine also specifies that taurine can be used
                only in pet food and not in other organic multi-ingredient products.
                Taurine is an amino sulfonic acid that many pets (all cats and some dog
                breeds) require but cannot obtain in adequate amounts by consuming pet
                food that does not contain added taurine. For that reason, AAFCO's cat
                nutrient profiles require taurine, and it is a common synthetic
                additive in pet foods.
                 This proposed addition follows an NOSB recommendation to add
                taurine to the National List as an allowed substance for use
                exclusively in pet foods. The NOSB concluded that taurine is necessary
                to meet nutritional requirements for cats. Also, based on public
                comment, the NOSB determined that taurine can also be necessary for
                dogs' nutrition, and, therefore, recommended taurine be allowed in pet
                food generally. AMS agrees with the NOSB's rationale and recommendation
                since taurine is essential for pet health and adequate taurine levels
                cannot be achieved using organic agricultural ingredients alone when
                pet food is cooked. This proposed rule, if finalized, would amend the
                regulations to provide for the use of taurine.
                 Individuals may petition to add other substances to the National
                List for use in organic pet food. Because organic pet food must meet
                all applicable federal and state laws and regulations, any person or
                organization petitioning to add a substance to the National List for
                use in organic pet food must ensure the use of that substance is
                consistent with applicable federal and state laws and rules. Synthetic
                substances petitioned for use in pet food would also be evaluated
                according to the existing criteria in OFPA (7 U.S.C. 6517 and 6518) and
                the USDA organic regulations (Sec. 205.600).
                VI. Regulatory Analyses
                Executive Orders 12866, 13563, 14094, and the Regulatory Flexibility
                Act
                 This rule does not meet the criteria of a ``significant regulatory
                action'' under Executive Order 12866, as supplemented by Executive
                Order 13563 and updated by Executive Order 14094. Therefore, the Office
                of Management and Budget (OMB) has not reviewed this rule under those
                orders.
                 The Regulatory Flexibility Act (RFA) (5 U.S.C. 601-612) 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 of the RFA 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 place of preparing an analysis if
                the rulemaking is not expected to have a significant economic impact on
                a substantial number of small entities. AMS has concluded that this
                rule, if promulgated, will not have a significant economic impact on a
                substantial number of small entities, and, therefore, an analysis is
                not included. Below, AMS presents information about the industry and
                the possible effects of the rule on small entities to support this
                conclusion.
                 The Small Business Administration (SBA) sets size criteria for each
                industry described in the North American Industry Classification System
                (NAICS) to delineate which operations qualify as small businesses.
                SBA's size standards are expressed in terms of number of employees or
                annual receipts and indicate the maximum allowed for an entity to be
                considered small.\37\
                ---------------------------------------------------------------------------
                 \37\ U.S. SBA. (March 17, 2023). Table of size standards.
                https://www.sba.gov/document/support-table-size-standards.
                ---------------------------------------------------------------------------
                 Mushroom Producers. AMS has considered the economic impact of this
                rulemaking on small mushroom producers. At the time of this analysis,
                small organic mushroom producers were listed under NAICS code 111411
                (Mushroom Production) as grossing equal to or less than $4,500,000 per
                year.\38\ AMS estimates that out of 229 domestic operations reporting
                sales of organic mushrooms, 14 operations exceed that threshold.\39\
                While most organic mushroom operations that would be affected by this
                rule are small entities, this rule has the potential to impose only
                minor costs on them related to paperwork burden (see Paperwork
                Reduction Action section below) and costs associated with
                [[Page 17333]]
                sourcing organic spawn and substrate materials, when commercially
                available. AMS concludes that this rule, if promulgated, will not have
                a significant economic impact on a substantial number of these small
                entities.
                ---------------------------------------------------------------------------
                 \38\ U.S. SBA. (March 17, 2023). Table of size standards.
                https://www.sba.gov/document/support-table-size-standards.
                 \39\ The National Agricultural Statistics Service was unable to
                supply a precise tabulation of large organic operations due to
                disclosure concerns. AMS estimated the number of large mushroom
                operations and sales from large mushroom operations using the
                proportion of conventional mushroom operations by sales from the
                USDA's 2017 Census of Agriculture, available here: https://www.nass.usda.gov/Publications/AgCensus/2017/index.php. The same
                distribution is assumed to apply to organic mushroom operations.
                ---------------------------------------------------------------------------
                 Pet Food Operations. AMS has considered the economic impact of this
                rulemaking on small organic pet food producers. At the time of this
                analysis, small organic pet food producers were listed under NAICS code
                311111 (Dog and Cat Food Manufacturing) as employing equal to or fewer
                than 1,250 employees.\40\ AMS estimates that given the small size of
                the organic pet food market, most organic pet food operations are small
                entities. Pet food operations may incur small one-time paperwork costs
                (see Paperwork Reduction Act section below), but the proposed rule
                would establish standards for organic pet food handling that align with
                many existing industry practices. Additionally, the rule could allow
                operations to use additional inputs (e.g., taurine) in pet food. AMS
                concludes that this rule, if promulgated, will not have a significant
                economic impact on a substantial number of these small entities.
                ---------------------------------------------------------------------------
                 \40\ U.S. SBA. (March 17, 2023). Table of size standards.
                https://www.sba.gov/document/support-table-size-standards.
                ---------------------------------------------------------------------------
                 Certifying agents. This proposed rule would also affect certifying
                agents that certify organic mushroom or pet food operations. At the
                time of this analysis, the SBA defined small agricultural service
                firms, which include certifying agents, as those having annual receipts
                equal to or less than $19,500,000 (NAICS code 541990--All Other
                Professional, Scientific and Technical Services). There are currently
                74 USDA-accredited certifying agents, and AMS believes most of these
                certifying agents are small entities. Certifying agents must already
                comply with the current regulations and already certify these
                operations. Certifying agents may incur minor one-time paperwork costs
                (see Paperwork Reduction Act section below). However, this rule would
                reduce the current burden of creating and maintaining individual
                policies for organic mushroom production and organic pet food handling.
                AMS concludes that this rule, if promulgated, will not have a
                significant economic impact on a substantial number of these small
                entities.
                Executive Order 12988
                 Executive Order 12988 instructs each executive agency to adhere to
                certain requirements in the development of new and revised regulations
                to avoid unduly burdening the court system. This proposed rule complies
                with these requirements. This rule would not be applied retroactively.
                Additionally, to prevent duplicative regulation, States and local
                jurisdictions are preempted under OFPA from creating accreditation
                programs 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 OFPA (7 U.S.C. 6514(b)). States are
                also preempted under sections 6503 through 6507 of OFPA 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 OFPA.
                 Pursuant to section 6507(b)(2) of OFPA, a state organic
                certification program that has been approved by the Secretary may,
                under certain circumstances, contain additional requirements for the
                production and handling of agricultural products organically produced
                in the state and for the certification of organic farm and handling
                operations located within the state. Such additional requirements must
                (a) further the purposes of OFPA, (b) not be inconsistent with OFPA,
                (c) not be discriminatory toward agricultural commodities organically
                produced in other States, and (d) not be effective until approved by
                the Secretary.
                 In addition, pursuant to section 6519(c)(6) of OFPA, this
                rulemaking would not supersede or alter the authority of the Secretary
                under the Federal Meat Inspection Act (21 U.S.C. 601-624), the Poultry
                Products Inspection Act (21 U.S.C. 451-471), or the Egg Products
                Inspection Act (21 U.S.C. 1031-1056), concerning meat, poultry, and egg
                products, respectively, 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. 301-399i), nor the authority of the Administrator of the
                Environmental Protection Agency under the Federal Insecticide,
                Fungicide and Rodenticide Act (7 U.S.C. 136-136y).
                 OFPA at 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 the statute that adversely
                affects such person or is inconsistent with the organic certification
                program established under OFPA. 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.
                Executive Order 13132
                 Executive Order 13132 mandates that federal agencies consider how
                their policymaking and regulatory activities impact the policymaking
                discretion of States and local officials and how well such efforts
                conform to the principles of federalism defined in said order. This
                executive order only pertains to regulations with clear federalism
                implications.
                 AMS has determined that this proposed rule conforms with the
                principles of federalism described in E.O. 13132. The rule would not
                impose substantial direct costs or effects on States, would not alter
                the relationship between States and the federal government, and would
                not alter the distribution of powers and responsibilities among the
                various levels of government. States have the opportunity to comment on
                any potential federalism implications during this proposed rule's
                comment period. AMS will consider these comments when assessing the
                federalism implications of any final rule.
                Executive Order 13175
                 Executive Order 13175 requires Federal agencies to consult and
                coordinate with Tribes on a government-to-government basis on policies
                that have Tribal implications, including regulations, legislative
                comments, or proposed legislation. Additionally, other policy
                statements or actions that have substantial direct effects on one or
                more Indian Tribes, the relationship between the Federal Government and
                Indian Tribes, or on the distribution of power and responsibilities
                between the Federal Government and Indian Tribes also require
                consultation. After consultation with the USDA Office of Tribal
                Relations, AMS has determined that a Tribal consultation for this
                rulemaking is not necessary, as it is unlikely to impact Tribes.
                However, AMS will conduct a Tribal consultation if stakeholders request
                one.
                Civil Rights Impact Analysis
                 AMS has reviewed this rulemaking in accordance with the
                Departmental Regulation 4300-4, Civil Rights Impact Analysis, to
                address any major civil rights impacts the rule might have on
                minorities, women, and/or persons with disabilities. After a careful
                review of the rule's intent and provisions, AMS determined that there
                is no evidence that this proposed rule would have
                [[Page 17334]]
                adverse civil rights impacts on organic producers identifying as
                minorities, women, and/or persons with disabilities. Additionally, this
                proposed rule would not impose any requirements related to eligibility
                for benefits and services on protected classes, nor would the rule have
                the purpose or effect of treating classes of persons differently.
                 Protected individuals have the same opportunity to participate in
                NOP as non-protected individuals. USDA organic regulations prohibit
                discrimination by certifying agents. Specifically, 7 CFR 205.501(d) of
                the current regulations for accreditation of certifying agents provides
                that ``No private or governmental entity accredited as a certifying
                agent under this subpart shall exclude from participation in or deny
                the benefits of the National Organic Program to any person due to
                discrimination because of race, color, national origin, gender,
                religion, age, disability, political beliefs, sexual orientation, or
                marital or family status.'' Section 205.501(a)(2) requires certifying
                agents to ``[d]emonstrate the ability to fully comply with the
                requirements for accreditation set forth in this subpart,'' including
                the prohibition on discrimination. The granting of accreditation to
                certifying agents under Sec. 205.506 requires the review of
                information submitted by the certifying agent and an on-site review of
                the certifying agent's client operation. Further, if certification is
                denied, Sec. 205.405(d) requires that the certifying agent notify the
                applicant of their right to file an appeal to the AMS Administrator in
                accordance with Sec. 205.681.
                 These regulations provide protections against discrimination,
                thereby permitting all producers, regardless of race, color, national
                origin, gender, religion, age, disability, political beliefs, sexual
                orientation, or marital or family status, who voluntarily choose to
                adhere to the rules and qualify, to be certified as meeting NOP
                requirements by an accredited certifying agent. This action in no way
                changes any of these protections against discrimination.
                Paperwork Reduction Act
                 In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
                3501-3521) (PRA), AMS is requesting OMB approval for a new information
                collection totaling 851 hours for the reporting and recordkeeping
                requirements contained in this proposed rule. OMB previously approved
                information collection requests (ICR) associated with the NOP and
                assigned OMB control number 0581-0191. AMS intends to merge this new
                information collection, upon OMB approval, into the approved 0581-0191
                collection. Below, AMS describes and estimates the annual burden, i.e.,
                the amount of time and cost of labor, for entities to prepare and
                maintain information to participate in this proposed voluntary labeling
                program. OFPA, as amended, provides authority for this action.
                 Title: National Organic Program: Market Development for Mushrooms
                and Pet Food.
                 OMB Control Number: 0581-NEW.
                 Expiration Date of Approval: Three years from OMB date of approval.
                 Type of Request: New collection.
                 Abstract: Information collection would be necessary to implement
                reporting required by the proposed standards for organic mushroom
                production and pet food handling under the USDA organic regulations
                (Sec. Sec. 205.210 and 205.270). This proposed rule would establish
                USDA organic requirements in these sectors to support consistent
                interpretation and remove regulatory uncertainty. By doing so, it would
                support the purposes of OFPA, ``to assure consumers that organically
                produced products meet a consistent standard'' and to ``establish
                national standards'' for products marketed as organic (7 U.S.C. 6501).
                Additional information on the purpose and need for this rule is
                included in the BACKGROUND section of this rule.
                Overview
                 Information collection and recordkeeping would be required to
                demonstrate compliance with proposed new Sec. 205.210 and proposed
                amendments to Sec. 205.270 of the USDA organic regulations, 7 CFR part
                205, that establish standards for mushroom production and pet food
                handling. Historically, while mushrooms have been managed as a crop and
                pet food has been manufactured in compliance with the livestock feed
                and/or handling standards, AMS has received reports that the lack of
                specific standards for mushrooms and pet food handling deters business
                investment and creates inefficiencies in these markets.
                 Mushrooms are not plants. They do not photosynthesize and are
                generally grown in controlled environments. While mushrooms can comply
                with most of the existing regulations governing crop production,
                including Sec. Sec. 205.200-202 and 205.206, they have very distinct
                growing requirements that differ from plant crops and are not directly
                addressed in the current organic regulations. AMS is proposing to add
                Sec. 205.210 to the USDA organic regulations to describe the specific
                practice standards for mushrooms that codify the processes and
                materials allowed in organic mushroom operations. This includes
                mushroom substrate requirements instead of the soil fertility and crop
                nutrient management requirements in Sec. 205.203 and spawn production
                requirements in lieu of the parallel seeds and planting stock practice
                requirements in Sec. 205.204.
                 AMS is proposing to apply the existing framework for the organic
                handling requirements at Sec. 205.270 to pet food composition and
                labeling. Some parties interested in creating organic feed stated that
                it was not clear if organic pet food was allowed to contain slaughter
                by-products, which are prohibited in livestock feed. This proposed rule
                would clearly permit the use of slaughter by-products from organic
                livestock in organic pet food by establishing pet food regulations
                outside of the livestock feed standards.
                 These amendments would require one-time additional reporting for
                already certified pet food and mushroom operations, accredited
                certifying agents, and inspectors. Existing organic mushroom and pet
                food operations would need to review their existing organic system
                plans for compliance, certifiers would have to review the updated
                plans, and certifiers/inspectors would need training on the new
                regulation. The reporting burden for new and exempt operations in these
                sectors would remain unchanged from the current ICR, and recordkeeping
                burdens from the current ICR would remain unchanged for all
                respondents. Beyond the first year, AMS expects no increase in
                reporting and recordkeeping burden for any respondents. The continuing
                reporting and recordkeeping requirements are routine activities that
                are currently identified in the NOP's approved ICR.
                [[Page 17335]]
                Respondents
                 Six respondent types--certified operations (producers and
                handlers), accredited certifying agents, inspectors, foreign
                governments, state organic programs, and petitioners--have been
                identified in our currently approved information collection (0581-
                0191). AMS has identified three primary types of entities (respondents)
                that would need to submit new information because of this proposed
                rule: certified organic operations, accredited certifying agents, and
                organic inspectors. AMS does not expect this rule to impact any new
                operation, foreign governments, state organic programs, and petitioners
                as it only seeks to establish specific standards for mushroom and pet
                food operations, which would only require changes from existing
                operations and certifiers. The reporting burden for new and exempt
                operations in these sectors would remain unchanged from the ICR, and
                recordkeeping burdens from the current ICR would remain unchanged for
                all respondents.
                Calculating Reporting and Recordkeeping Burden
                 AMS identifies three types of entities (respondents) that would
                need to submit and maintain information to participate in organic pet
                food and mushroom certification:
                 1. Organic pet food and mushroom operations.
                 2. Accredited certifying agents.
                 3. Inspectors.
                 To understand the reporting and recordkeeping costs of this
                rulemaking more precisely, AMS calculated the potential impacts
                utilizing domestic and foreign labor rates (per hour) plus benefits.
                 AMS calculates the time burden of the new reporting and
                recordkeeping requirements of this rulemaking by estimating the
                following:
                 1. The number of respondents.
                 2. Frequency of response.
                 3. Total number of burden hours per year.
                 The number of respondents is based on operation, certifier,
                inspector, and State Organic Program data from the Organic Integrity
                Database. The frequency of responses is estimated to be the total
                annual responses and the number of responses per respondent in twelve
                months. The total number of burden hours per year is estimated to be
                the total annual responses multiplied by the number of hours per
                response.
                 AMS estimates the cost (financial) burden of the new reporting and
                recordkeeping requirements of this rulemaking by estimating the
                following:
                 1. Total hours per respondent.
                 2. Total hours for all respondents.
                 3. Capital and other non-labor costs per respondent.
                 4. Total capital and other non-labor costs for all respondents.
                 The total hours per respondent and for all respondents were
                estimated based on the number of respondents and the amount of time AMS
                estimates would be needed to report and record new information based on
                this rulemaking.
                1. Operations: Mushroom Producers and Pet Food Manufacturers
                 Domestic and foreign producers and handlers that are updating their
                organic system plan must address how their operation complies with the
                proposed mushroom or pet food standards. Operations would be required
                to update any changes in their operation or practices to their
                certifying agent at least annually. AMS has identified 229 domestic and
                43 foreign-based operations that produce mushrooms and 31 domestic and
                5 foreign-based operations that manufacture pet food requiring 308
                reporting responses.\41\
                ---------------------------------------------------------------------------
                 \41\ USDA. Organic Integrity Database. https://organic.ams.usda.gov/IntegrityPlus/Search.aspx. To obtain the
                relevant data, search for ``mushroom'' and
                ``pet,dog,canine,cat,feline'' in the ``Certified Products'' field.
                Accessed May 9, 2023.
                ---------------------------------------------------------------------------
                 The proposed mushroom production and pet food handling standards
                are estimated to require each current mushroom producer or pet food
                manufacturer to spend one hour to verify the compliance of their
                organic system plan with the proposed standards. AMS estimates the
                costs of the one-time reporting burden for all mushroom producers and
                pet food manufacturers to review and verify the compliance of their new
                or updated organic system plan at $15,391.55. This is based on 260
                labor hours at $52.18 per labor hour (including benefit costs) \42\ for
                260 domestic operations, totaling $13,565.64; and 48 labor hours at
                $38.04 per labor hour (including benefit costs) \43\ for 48 foreign
                operations, totaling $1,825.91 (See Table 3: USDA Certified Operations
                Reporting Burden). No new recordkeeping burden is incurred by this
                proposed rule as these operations are already certified and covered by
                existing recording keeping in the current Information Collection
                Request.\44\
                ---------------------------------------------------------------------------
                 \42\ The cost of labor per hour for domestic operations was
                obtained by calculating the sum of the mean hourly wage for
                agricultural workers and the hourly cost of worker benefits. In May
                2022, the mean hourly wage for Farmers, Ranchers, and Other
                Agricultural Managers (Standard Occupational Classification code 11-
                9013) was $40.29. U.S. Bureau of Labor Statistics. (April 25, 2023).
                ``Occupational employment and wage statistics: May 2022 national
                occupational employment and wage estimates United States.'' https://www.bls.gov/oes/current/oes_nat.htm#top. Domestic benefits were
                reported to be 29.5 percent of total average civilian employer
                compensation costs. U.S. Bureau of Labor Statistics. (June 16,
                2023). ``Employer costs for employee compensation summary.'' USDL-
                23-0488. https://www.bls.gov/news.release/ecec.nr0.htm.
                 \43\ Wages in foreign countries are estimated to be 70.15
                percent of U.S wages. This percentage was derived by dividing the
                World Bank estimates of Organization for Economic Co-Operation and
                Development (OECD) member countries in 2021 by the wages of the
                United States in 2021. The World Bank. ``GDP per capita PPP--OECD
                members.'' Accessed August 2023. https://data.worldbank.org/indicator/NY.GDP.PCAP.PP.CD?locations=OE. Foreign worker benefit
                rates are based on the average OECD member countries' tax wedge rate
                of 34.59 percent in 2021. OECD. ``Taxing Wages--Comparative
                tables.'' Accessed May 9, 2023. https://stats.oecd.org/Index.aspx?DataSetCode=AWCOMP.
                 \44\ The current Information Collection Request can be found at
                https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202001-0581-001.
                 Table 3--USDA Certified Operations (Mushroom Producers and Pet Food Handlers) Reporting Burden
                ----------------------------------------------------------------------------------------------------------------
                 Total
                 Respondent categories Number of Wage + reporting Total costs
                 respondents benefits hours
                ----------------------------------------------------------------------------------------------------------------
                USDA Certified Producers & Handlers--Domestic... 260 $52.18 260 $13,565.64
                USDA Certified Producers & Handlers--Foreign.... 48 38.04 48 1,825.91
                 ---------------------------------------------------------------
                 USDA Organic Operations--All................ 308 .............. 308 15,391.55
                ----------------------------------------------------------------------------------------------------------------
                [[Page 17336]]
                2. Certifying Agents
                 Certifying agents are State, private, or foreign entities
                accredited by the USDA to certify domestic and foreign producers and
                handlers as organic in accordance with OFPA and the USDA organic
                regulations. Certifying agents determine whether a producer or handler
                meets the organic requirements, using detailed information from the
                operation about its specific practices and on-site inspection reports
                from organic inspectors. There are 39 certifying agents (31 domestic
                and 8 foreign) accredited by USDA certifying organic mushroom
                operations and 12 certifying agents (8 domestic and 4 foreign)
                accredited by USDA certifying organic pet food processing that would
                require 308 reporting responses to certify each organic operation and
                51 responses for staff training.\45\
                ---------------------------------------------------------------------------
                 \45\ USDA. Organic Integrity Database. https://organic.ams.usda.gov/IntegrityPlus/Search.aspx. To obtain the
                relevant data, search for ``mushroom'' and
                ``pet,dog,canine,cat,feline'' in the ``Certified Products'' field.
                Accessed May 9, 2023.
                ---------------------------------------------------------------------------
                 The proposed mushroom production and pet food handling standards
                would require certifying agents of current mushroom producers and pet
                food manufacturers to spend one hour for each producer or manufacturer
                to verify their compliance with the proposed standards. In addition, it
                is estimated that certifying agents would need to provide one hour of
                training regarding the proposed mushroom production and pet food
                handling standards to their certification review personnel. Each
                certifying agent certifying organic mushroom production would incur
                approximately eight hours of first-time reporting burden (one hour for
                training and seven hours for approximately seven operations per
                certifier) \46\ but no new recordkeeping burden due to this proposed
                rule. Each certifying agent certifying organic pet food processing
                would incur approximately four hours of first-time reporting burden
                (one hour for training and three hours for approximately three
                operations per certifier) \47\ but no new recordkeeping burden due to
                this proposed rule. AMS estimates the costs of the one-time reporting
                burden for all certifying agents to review and verify the compliance of
                the new or updated organic system plan of mushroom producers and pet
                food manufacturers and the provision of training at $16,170.00. This is
                based on 279 labor hours at $47.93 per labor hour (including benefit
                costs) \48\ for 39 domestic certifying agents, totaling $13,381.73; and
                80 labor hours at $34.94 per labor hour (including benefit costs) \49\
                for 12 foreign certifying agents, totaling $2,788.27. (See Table 4:
                USDA Certifying Agents Reporting Burden).
                ---------------------------------------------------------------------------
                 \46\ This is the calculated average number of mushroom
                operations (272) per certifier certifying mushrooms (39).
                 \47\ This is the calculated average number of pet food
                operations (36) per certifier certifying pet food (12).
                 \48\ The cost of labor per hour for domestic certifying agents
                was obtained by calculating the sum of the mean hourly wage for
                compliance officers and the hourly cost of worker benefits. In May
                2022, the mean hourly wage for Compliance Officers (Standard
                Occupational Classification (SOC) code 13-1041) was $37.01. U.S.
                Bureau of Labor Statistics. (April 25, 2023). ``Occupational
                employment and wage statistics: May 2022 national occupational
                employment and wage estimates United States.'' https://www.bls.gov/oes/current/oes_nat.htm#top. Domestic benefits were reported to be
                29.5 percent of total average civilian employer compensation costs.
                U.S. Bureau of Labor Statistics. (June 16, 2023). ``Employer costs
                for employee compensation summary.'' USDL-23-0488. https://www.bls.gov/news.release/ecec.nr0.htm.
                 \49\ See footnote 48.
                 Table 4--USDA Certifying Agents (Certifying Mushroom Producers and Pet Food Handlers) Reporting Burden
                ----------------------------------------------------------------------------------------------------------------
                 Total
                 Respondent categories Number of Wage + reporting Total costs
                 respondents benefits hours
                ----------------------------------------------------------------------------------------------------------------
                USDA U.S.-Based Certifiers--Mushrooms........... 31 $47.93 247.21 $11,848.04
                USDA Foreign-Based Certifiers--Mushrooms........ 8 34.94 64.79 2,229.18
                USDA U.S.-Based Certifiers--Pet food............ 8 47.93 32 1,533.69
                USDA Foreign-Based Certifiers--Pet food......... 4 34.94 16 559.09
                 ---------------------------------------------------------------
                 USDA Certifiers--All........................ * 51 .............. 359 16,170.00
                ----------------------------------------------------------------------------------------------------------------
                * Some certifiers may certify both pet food and mushroom operations but are counted as separate entities in this
                 column.
                3. Organic Inspectors
                 Inspectors conduct on-site inspections of certified operations and
                operations applying for certification and report the findings to the
                certifying agent. Inspectors may be independent contractors or
                employees of certifying agents. Inspectors provide an inspection report
                to the certifying agent for each operation inspected (Sec.
                205.404(a)). Currently, AMS estimates that inspectors would receive one
                hour of training on the proposed mushroom production and pet food
                handling standards. Inspectors do not have recordkeeping obligations,
                as certifying agents maintain the records of inspection reports.
                 According to the International Organic Inspectors Association,
                there are approximately 184 inspectors in the world that inspect
                organic crop, livestock, handling, and/or wild crop operations'
                compliance with USDA organic standards.\50\ Thus, the proposed rule
                would require approximately 184 reporting responses from inspectors.
                AMS estimates the costs of the one-time reporting burden for all
                inspectors to receive one hour of training on the proposed mushroom
                production and pet food handling standards at $5,111.82. This is based
                on 123 labor hours for 123 U.S.-based inspectors to receive training in
                the U.S. at $30.52 per labor hour, (including benefit costs),\51\
                totaling $3,754.35 in costs; and 61 labor hours for 61 foreign-based
                inspectors to receive training at $22.25 per hour (including benefit
                costs),\52\ totaling $1,357.47 in costs. (See Table 5: Inspectors
                Reporting Burden).
                ---------------------------------------------------------------------------
                 \50\ This estimate is based on data from the International
                Organic Inspectors Association Membership Directory, available at:
                https://www.ioia.net/member-directory.
                 \51\ The cost of labor per hour for domestic inspectors was
                obtained by calculating the sum of the mean hourly wage for
                agricultural inspectors and the hourly cost of worker benefits. In
                May 2022, the mean hourly wage for Agricultural Inspectors (Standard
                Occupational Classification (SOC) code 45-2011) was $23.57. U.S.
                Bureau of Labor Statistics. (April 25, 2023). ``Occupational
                employment and wage statistics: May 2022 national occupational
                employment and wage estimates United States.'' https://www.bls.gov/oes/current/oes_nat.htm#top. Domestic benefits were reported to be
                29.5 percent of total average civilian employer compensation costs.
                U.S. Bureau of Labor Statistics. (June 16, 2023). ``Employer costs
                for employee compensation summary.'' USDL-23-0488. https://www.bls.gov/news.release/ecec.nr0.htm.
                 \52\ See footnote 48.
                [[Page 17337]]
                 Table 5--Inspectors Reporting Burden
                ----------------------------------------------------------------------------------------------------------------
                 Total
                 Respondent categories Number of Wage + reporting Total costs
                 respondents benefits hours
                ----------------------------------------------------------------------------------------------------------------
                USDA U.S.-based Inspectors...................... 123 $30.52 123 $3,754.35
                USDA Foreign based inspectors................... 61 22.25 61 1,357.47
                 ---------------------------------------------------------------
                 USDA Inspectors--All........................ 184 .............. 184 5,111.82
                ----------------------------------------------------------------------------------------------------------------
                Summary of Reporting Burden
                Total (Domestic and Foreign) Information Collection Cost (Reporting) of
                Proposed Rule: $36,673.37 (See Table 6: Total Reporting Burden)
                 AMS estimates the public reporting burden for this information
                collection to be 851 hours at a total cost of $36,673.37 with a total
                number of 543 respondents. Respondents comprise currently certified
                organic mushroom producers and pet food manufacturers, USDA accredited
                certifying agents, and inspectors.
                 Table 6--Total Reporting Burden
                ----------------------------------------------------------------------------------------------------------------
                 Total number of
                 reporting Total reporting Total all costs
                 respondents hours--all
                ----------------------------------------------------------------------------------------------------------------
                Summary of Tables 1, 2, & 3.................................. 543 851 $36,673.37
                ----------------------------------------------------------------------------------------------------------------
                 Total All Reporting Burden Cost: $36,673.37.
                 Estimate of Burden: Public reporting burden for the collection of
                information is estimated to average 1.57 hours per year per response.
                 Respondents: Certified operations, certifying agents, and
                inspectors.
                 Estimated Number of Reporting Respondents: 543.
                 Estimated Number of Reporting Responses: 851.
                 Estimated Total Reporting Burden on Respondents: 851 hours.
                 Estimated Total Annual Reporting Hours per Reporting Respondent:
                1.57 reporting hours per reporting respondent.
                 Estimated Total Annual Reporting Responses per Reporting
                Respondent: 1.57 reporting responses per reporting respondent.
                 Estimated Total Annual Reporting Hours per Reporting Response: 1.57
                hours per reporting response.
                Total Domestic Reporting Burden Cost: $30,701.72
                 Respondents: Certified operations, certifying agents, and
                inspectors.
                 Estimated Number of Domestic Reporting Respondents: 422
                respondents.
                 Estimated Number of Domestic Reporting Responses: 662 responses.
                 Estimated Total Annual Reporting Burden on Domestic Respondents:
                662 hours.
                Total Foreign Reporting Burden Cost: $5,971.65
                 Respondents: Certified operations, certifying agents, and
                inspectors.
                 Estimated Number of Foreign Reporting Respondents: 121 respondents.
                 Estimated Number of Foreign Reporting Responses: 189 responses.
                 Estimated Total Annual Reporting Burden on Foreign Respondents: 189
                hours.
                Summary of Recordkeeping Burden
                 There are no expected recordkeeping burdens as a result of the
                proposed rule.
                Comments
                 AMS is inviting comments from all interested parties concerning the
                information collection that would be required as a result of the
                proposed amendments to 7 CFR part 205. AMS seeks comment on the
                following subjects:
                 1. Whether the proposed collection of information is necessary for
                the proper performance of the functions of the agency, including
                whether the information would have practical utility.
                 2. The accuracy of the agency's estimate of the burden of the
                proposed collection of information, including the validity of the
                methodology and assumptions used.
                 3. Ways to enhance the quality, utility, and clarity of the
                information to be collected.
                 4. Ways to minimize the burden of the collection of information on
                those who are to respond, including the use of appropriate automated,
                electronic, mechanical, or other technological collection techniques or
                other forms of information technology.
                List of Subjects in 7 CFR Part 205
                 Administrative practice and procedure, Agricultural commodities,
                Agriculture, Animals, Archives and records, Fees, Imports, Labeling,
                Livestock, National List, National Organic Standards Board (NOSB),
                Organically produced products, Plants, Reporting and recordkeeping
                requirements, Seals and insignia, Soil conservation, Sunset.
                 For the reasons stated in the preamble, AMS proposes to amend 7 CFR
                part 205 as follows:
                PART 205--NATIONAL ORGANIC PROGRAM
                0
                1. The authority citation for part 205 continues to read as follows:
                 Authority: 7 U.S.C. 6501-6524.
                0
                2. Amend Sec. 205.2 by:
                0
                a. Revising the definitions of ``Compost'' and ``Crop'';
                0
                b. Adding in alphabetical order definitions for ``Mushroom'',
                ``Mushroom substrate'', ``Mycelium'', ``Pet'', ``Pet food'', ``Spawn'',
                and ``Spawn media''; and
                0
                c. Revising the definition of ``Wild crop''.
                [[Page 17338]]
                 The revisions and additions read as follows:
                Sec. 205.2 Terms defined.
                * * * * *
                 Compost. The product of a managed process through which
                microorganisms break down plant and animal materials into more
                available forms suitable for application to the soil or as a component
                of mushroom substrate.
                * * * * *
                 Crop. Pastures, cover crops, green manure crops, catch crops,
                mushrooms, or any plant or part of a plant intended to be marketed as
                an agricultural product, fed to livestock, or used in the field to
                manage nutrients and soil fertility.
                * * * * *
                 Mushroom. The edible, fleshy, spore-bearing fruiting body of a
                fungus.
                 Mushroom substrate. The base material, such as grain, wood, and/or
                other agricultural materials, from which mushrooms are cultivated or
                grown. This base material can include composted material.
                 Mycelium. A mass of branching, thread-like hyphae (fungal
                structures).
                * * * * *
                 Pet. Any domestic animal not used for the production and sale of
                food, fiber, or other agricultural-based consumer products.
                 Pet food. Any commercial feed prepared and distributed for pet
                consumption.
                * * * * *
                 Spawn. Spawn media that has been colonized by mycelium, which is
                used to inoculate mushroom substrates.
                 Spawn media. A carrier, such as grains or minerals, that, when
                colonized with mycelium, creates spawn.
                * * * * *
                 Wild crop. Any mushroom, plant, or portion of a plant that is
                collected or harvested from a site that is not maintained under
                cultivation or other agricultural management.
                * * * * *
                0
                3. Add Sec. 205.210 to read as follows:
                Sec. 205.210 Mushroom production practice standard.
                 (a) The producer must manage mushroom production in accordance with
                the provisions of Sec. Sec. 205.200, 205.201, 205.202 as applicable,
                205.203(e), 205.206(a)(2) and(3), and 205.206(b) through (f). The
                producer may manage crop nutrients for mushroom production in
                accordance with the provisions of Sec. 205.203(d)(1) through (5).
                 (b) The producer must manage mushroom substrate and spawn media,
                including spent mushroom substrate and spawn media, in a manner that
                does not contribute to contamination of crops, spawn, mushroom
                substrate, soil, or water by pathogenic organisms, heavy metals, or
                residues of prohibited substances.
                 (c) Mushroom substrate and spawn media may be composed of the
                following materials in accordance with the conditions specified in this
                paragraph (c):
                 (1) Composted plant and animal materials. Compost used in mushroom
                production must be described in the organic system plan. It must be
                produced through a process that maintains a temperature of at least 131
                [deg]F for at least three days;
                 (2) Uncomposted plant materials. Uncomposted plant materials must
                be organically produced: Except, that, nonorganically produced
                uncomposted plant materials may be used in mushroom production when an
                equivalent organically produced variety is not commercially available.
                Prohibited substances may not be applied to nonorganically produced
                uncomposted plant materials after harvest.
                 (3) Nonsynthetic substances, except those on the National List of
                nonsynthetic substances prohibited for use in organic crop production
                (Sec. 205.602); and
                 (4) Synthetic substances on the National List of synthetic
                substances allowed for use in organic crop production (Sec. 205.601).
                 (d) Spawn must be organic: Except, that, nonorganic spawn may be
                used to produce an organic crop when an equivalent organically managed
                variety is not commercially available. Organic spawn must use organic
                agricultural products as the spawn media and be under continuous
                organic management after the mycelium is applied to the organic spawn
                media.
                0
                4. Amend Sec. 205.270 by redesignating paragraph (c) as paragraph (d)
                and adding new paragraph (c) to read as follows:
                Sec. 205.270 Organic handling requirements.
                * * * * *
                 (c) In addition to the substances described in paragraph (b) of
                this section, substances allowed under Sec. 205.603(d)(2) and (3) may
                be used in or on pet food intended to be sold, labeled, or represented
                as ``organic'' or ``made with organic (specified ingredients or food
                group(s)),'' pursuant to Sec. 205.301(b) and (c). Pet food labeled as
                organic must be labeled pursuant to the applicable portions of subpart
                D of this part.
                * * * * *
                0
                5. Amend Sec. 205.601 by revising paragraphs (i) introductory text and
                (j) introductory text to read as follows:
                Sec. 205.601 Synthetic substances allowed for use in organic crop
                production.
                * * * * *
                 (i) As crop disease control.
                * * * * *
                 (j) As crop or soil amendments.
                * * * * *
                0
                6. Amend Sec. 205.605 by redesignating paragraphs (b)(36) and (37) as
                paragraphs (b)(37) and (38), respectively, and adding new paragraph
                (b)(36) to read as follows:
                Sec. 205.605 Nonagricultural (nonorganic) substances allowed as
                ingredients in or on processed products labeled as ``organic'' or
                ``made with organic (specified ingredients or food group(s)).''
                * * * * *
                 (b) * * *
                 (36) Taurine--for use only in pet food.
                * * * * *
                Erin Morris,
                Associate Administrator, Agricultural Marketing Service.
                [FR Doc. 2024-04973 Filed 3-8-24; 8:45 am]
                BILLING CODE 3410-02-P
                

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