81_FR_50278 81 FR 50132 - National School Lunch Program and School Breakfast Program: Nutrition Standards for All Foods Sold in School as Required by the Healthy, Hunger-Free Kids Act of 2010

81 FR 50132 - National School Lunch Program and School Breakfast Program: Nutrition Standards for All Foods Sold in School as Required by the Healthy, Hunger-Free Kids Act of 2010

DEPARTMENT OF AGRICULTURE
Food and Nutrition Service

Federal Register Volume 81, Issue 146 (July 29, 2016)

Page Range50132-50151
FR Document2016-17227

This rule adopts as final, with some modifications, the National School Lunch Program and School Breakfast Program regulations set forth in the interim final rule published in the Federal Register on June 28, 2013. The requirements addressed in this rule conform to the provisions in the Healthy, Hunger-Free Kids Act of 2010 regarding nutrition standards for all foods sold in schools, other than food sold under the lunch and breakfast programs. Most provisions of this final rule were implemented on July 1, 2014, a full year subsequent to publication of the interim final rule. This was in compliance with section 208 of the Healthy, Hunger-Free Kids Act of 2010, which required that State and local educational agencies have at least one full school year from the date of publication of the interim final rule to implement the competitive food provisions. Based on comments received on the interim final rule and implementation experience, this final rule makes a few modifications to the nutrition standards for all foods sold in schools implemented on July 1, 2014. In addition, this final rule codifies specific policy guidance issued after publication of the interim rule. Finally, this rule retains the provision related to the standard for total fat as interim and requests further comment on this single standard.

Federal Register, Volume 81 Issue 146 (Friday, July 29, 2016)
[Federal Register Volume 81, Number 146 (Friday, July 29, 2016)]
[Rules and Regulations]
[Pages 50132-50151]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-17227]



[[Page 50131]]

Vol. 81

Friday,

No. 146

July 29, 2016

Part III





Department of Agriculture





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Food and Nutrition Service





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7 CFR Parts 210, 215, 220, et al.





 National School Lunch Program and School Breakfast Program: Nutrition 
Standards for All Foods Sold in School as Required by the Healthy, 
Hunger-Free Kids Act of 2010; Final Rule

Federal Register / Vol. 81 , No. 146 / Friday, July 29, 2016 / Rules 
and Regulations

[[Page 50132]]


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DEPARTMENT OF AGRICULTURE

Food and Nutrition Service

7 CFR Parts 210 and 220

[FNS-2011-0019]
RIN 0584-AE09


National School Lunch Program and School Breakfast Program: 
Nutrition Standards for All Foods Sold in School as Required by the 
Healthy, Hunger-Free Kids Act of 2010

AGENCY: Food and Nutrition Service, USDA.

ACTION: Final rule and interim final rule.

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SUMMARY: This rule adopts as final, with some modifications, the 
National School Lunch Program and School Breakfast Program regulations 
set forth in the interim final rule published in the Federal Register 
on June 28, 2013. The requirements addressed in this rule conform to 
the provisions in the Healthy, Hunger-Free Kids Act of 2010 regarding 
nutrition standards for all foods sold in schools, other than food sold 
under the lunch and breakfast programs. Most provisions of this final 
rule were implemented on July 1, 2014, a full year subsequent to 
publication of the interim final rule. This was in compliance with 
section 208 of the Healthy, Hunger-Free Kids Act of 2010, which 
required that State and local educational agencies have at least one 
full school year from the date of publication of the interim final rule 
to implement the competitive food provisions.
    Based on comments received on the interim final rule and 
implementation experience, this final rule makes a few modifications to 
the nutrition standards for all foods sold in schools implemented on 
July 1, 2014. In addition, this final rule codifies specific policy 
guidance issued after publication of the interim rule. Finally, this 
rule retains the provision related to the standard for total fat as 
interim and requests further comment on this single standard.

DATES: Effective date: This final rule is effective September 27, 2016.
    Comment date: Comments on the interim final rule total fat standard 
must be submitted by September 27, 2016.
    Compliance dates: Except as noted in this final rule, compliance 
with the nutrition standards and other provisions of the interim final 
rule began on July 1, 2014. The potable water provision was effective 
on October 1, 2010, and compliance with that provision was required no 
later than August 27, 2013.

ADDRESSES: To be considered, written comments must be submitted by one 
of the following methods:
     Federal eRulemaking Portal: Go to http://www.regulations.gov, select ``Food and Nutrition Service'' from the 
agency drop-down menu, and click ``Submit''. In the Docket ID column of 
the search results select ``FNS-2011-0019'' to submit or view public 
comments and to view supporting and related materials available 
electronically. Information on using Regulations.gov, including 
instructions for accessing documents, submitting comments, and viewing 
the docket after the close of the comment period is available through 
the site's ``User Tips'' link.
     By Mail: Send comments to Tina Namian, Branch Chief, 
School Meals Branch, Policy and Program Development Division, Child 
Nutrition Programs, Food and Nutrition Service, 3101 Park Center Drive, 
Alexandria, Virginia 22302. Mailed comments must be postmarked on or 
before the comment deadline identified in the DATES section of this 
preamble to be assured of consideration.
    All submissions received in response to the interim final provision 
on total fat will be included in the record and will be available to 
the public. Please be advised that the substance of the comments and 
the identity of the individuals or entities submitting comments will be 
subject to public disclosure. FNS also will make the comments publicly 
available by posting a copy of all comments on http://regulations.gov.

FOR FURTHER INFORMATION CONTACT: Tina Namian, Branch Chief, School 
Meals Branch, Policy and Program Development Division, Child Nutrition 
Programs, Food and Nutrition Service, 3101 Park Center Drive, 
Alexandria, Virginia 22302, or by telephone at (703) 305-2590.

SUPPLEMENTARY INFORMATION:

I. Overview

    This rule affirms, with some modifications, the interim final rule 
(IFR) that implemented amendments made by sections 203 and 208 of 
Public Law 111-296, the Healthy, Hunger-Free Kids Act of 2010 (HHFKA), 
to the Child Nutrition Act of 1966 (CNA) and the Richard B. Russell 
National School Lunch Act (NSLA) for schools that participate in the 
School Breakfast Program (SBP) and the National School Lunch Program 
(NSLP). The final rule addresses public comments submitted in response 
to the IFR and makes some adjustments that improve clarity of the 
provisions set forth in the IFR. In response to comments and 
implementation experience as shared by operators, the final rule also 
incorporates and codifies some policy guidance to allow additional 
foods and combinations to meet the nutrition standards. Specifically, 
the regulation finalizes the IFR, with the following changes:
    Modifies definitions as follows:
     Adds the term ``main dish'' to the definition of 
``Entr[eacute]e'' for clarification;
     Adds the term ``grain-only'' breakfast entr[eacute]es to 
the definition of ``Entr[eacute]e'' to codify policy guidance issued 
during implementation; and
     Adds a definition of ``Paired exempt foods'' to codify 
policy guidance issued during implementation.
    Expands exemptions as follows:
     Adds a specific exemption to the total fat and saturated 
fat standard for eggs; and
     Modifies the exemption to the General Standards for canned 
vegetables to exempt low sodium and no-salt added vegetables with no 
added fat to more closely align with USDA Foods standards and industry 
production standards.
    Retains as interim with a request for comment:
     The nutrient standard for total fat.
    Makes a technical change as follows:
     In Sec.  210.11(i) and Sec.  210.11(j), a revision is made 
to clarify that the calorie and sodium limits apply to all competitive 
food items available on school campus and not just to those sold a la 
carte during the meal service.

Impact of the 2015-2020 Dietary Guidelines for Americans

    The original development of the standards contained in this 
regulation was informed by the 2010 Dietary Guidelines for Americans 
(DGA), which were published in December 2010. Based on a thorough 
review of the recently published 2015-2020 DGA, USDA has determined 
that the standards contained in this regulation are also consistent 
with the new DGA. Key recommendations from the 2010 DGA are maintained 
in the 2015-2020 DGA, and so continue to be in line with the standards 
included in this rule. The 2015-2020 DGA contain a specific additional 
recommendation on limiting added sugar. A discussion of this 
recommendation and its relationship to the standards included in this 
rule is contained in this preamble in the discussion of the standard 
for sugar.

II. Background

    The NSLP served an average of 30.4 million children per day in 
Fiscal Year

[[Page 50133]]

(FY) 2014. In that same FY, the SBP served an average of 13.6 million 
children daily.
    The NSLA (42 U.S.C. 1751 et seq.) and the CNA (42 U.S.C. 1771 et 
seq.) require the Secretary to establish nutrition standards for meals 
served under the NSLP and SBP, respectively. Prior to the enactment of 
the HHFKA, section 10 of the CNA limited the Secretary's authority to 
regulate competitive foods, i.e., foods sold in competition with the 
school lunch and breakfast programs, to those foods sold in the food 
service area during meal periods. The Secretary did not have authority 
to establish regulatory requirements for food sold in other areas of 
the school campus or at other times in the school day.
    The HHFKA, enacted December 13, 2010, directed the Secretary to 
promulgate regulations to establish science-based nutrition standards 
for foods sold in schools other than those foods provided under the 
NSLP and SBP. Section 208 of the HHFKA amended section 10 of the CNA 
(42 U.S.C. 1779) to require that such nutrition standards apply to all 
foods sold:
     Outside the school meal programs;
     On the school campus; and
     At any time during the school day.
    Section 208 requires that such standards be consistent with the 
most recent DGA and that the Secretary consider authoritative 
scientific recommendations for nutrition standards; existing school 
nutrition standards, including voluntary standards for beverages and 
snack foods; current State and local standards; the practical 
application of the nutrition standards; and special exemptions for 
infrequent school-sponsored fundraisers.
    In addition, the amendments made by section 203 of the HHFKA 
amended section 9(a) of the NSLA (42 U.S.C. 1758(a)) to require that 
schools participating in the NSLP make potable water available to 
children at no charge in the place where meals are served during the 
meal service. This is a nondiscretionary requirement of the HHFKA that 
became effective October 1, 2010, and was required to be implemented by 
August 27, 2013.
    The Department published a proposed rule in the Federal Register on 
February 8, 2013 (78 FR 9530), titled National School Lunch Program and 
School Breakfast Program: Nutrition Standards for All Foods Sold in 
School as Required by the Healthy, Hunger-Free Kids Act of 2010. This 
rule proposed nutrition standards for foods offered for sale to 
students outside of the NSLP and SBP, including foods sold [agrave] la 
carte and in school stores and vending machines. The standards were 
designed to complement recent improvements in school meals, and to help 
promote diets that contribute to students' long term health and well-
being. The proposed rule also would have required schools participating 
in the NSLP and afterschool snack service under NSLP to make water 
available to children at no charge during the lunch and afterschool 
snack service. USDA received a total of 247,871 public comments to the 
proposed rule during the 60-day comment period from February 8, 2013 
through April 9, 2013. This total included several single comment 
letters with thousands of identical comments. Approximately 245,665 of 
these were form letters, nearly all of which were related to 104 
different mass mail campaigns. The remaining comments--over 2,200--were 
unique comments rather than form letters. Comments represented a 
diversity of interests, including advocacy organizations, industry and 
trade associations, farm and other industry groups, schools, school 
boards and school nutrition and education associations, State 
departments of education, consumer groups and others. USDA appreciated 
the public interest in the proposed rule and carefully considered all 
comments in drafting the IFR.
    As referenced earlier in this preamble, the Department published an 
IFR in the Federal Register on June 28, 2013, (78 FR 39068) titled 
National School Lunch and School Breakfast Program: Nutrition Standards 
for All Foods Sold in School as Required by the Healthy, Hunger-Free 
Kids Act of 2010, and all provisions were required to be implemented on 
July 1, 2014, a full year subsequent to publication of the IFR 
standards. This was in compliance with section 208 of the HHFKA 
requirement that State and local educational agencies have at least one 
full school year from the date of publication of the IFR to implement 
the competitive food provisions.

III. General Summary of Comments Received on the Interim Rule

    A total of 520 public comments on the IFR were received during the 
120-day comment period that ended on October 28, 2013. Fifty-three of 
these comments were copies of form letters related to nine different 
mass mail campaigns. The remaining comments included 460 letters with 
unique content rather than form letters. A total of 386 of these 
comments were substantive. Comments represented a diversity of 
interests, including advocacy organizations; health care organizations; 
industry and trade associations; farm and industry groups; schools, 
school boards and school nutrition and education associations; State 
departments of education; consumer groups; and others. A relatively 
modest number of comments were received on the IFR, many of which 
reiterated previous comments received during the proposed rule comment 
period and which had been taken into consideration as the IFR was 
drafted. This final rule, therefore, incorporates relatively minor 
modifications to the provisions of the IFR.
    In general, there was support for the IFR. Stakeholders were very 
supportive of the IFR, and some had specific comments and suggestions 
on several provisions included in the rule. Of the 520 comments, 103 
were in full support of the rule. Fifty commenters objected to 
implementation of this rule, indicating that no standards for 
competitive food should be implemented in schools. The remaining 
commenters included suggested revisions to various aspects of the rule 
and its implementation.
    Commenters recommended expanding exemptions to several of the 
standards for specific food items, such as side items served in the 
NSLP and the SBP, while others recommended continuing the initial 
sodium standard for snack foods. Several commenters recommended that 
the General Standard which allowed foods meeting the 10 percent Daily 
Value for nutrients of public health concern be made permanent rather 
than eliminated on July 1, 2016, as was included in the IFR. More 
detailed discussions of these specific issues are included in this 
preamble.
    Twenty-five comments expressed general support for the IFR, many 
citing concerns for childhood obesity and stating that competitive food 
standards will reinforce healthy eating habits in school and outside of 
school. In addition to their overall support of the rule, an advocacy 
organization and an individual commenter stated that lower income 
students may not have the opportunity to experience healthier food 
items outside of the school. These commenters asserted that this rule 
will introduce these students to healthier foods and possibly influence 
home food consumption patterns and protect the nutritional needs of 
children. One trade association applauded the Department's 
encouragement of dairy foods consumption throughout the rule and urged 
that these changes be retained. One individual commenter remarked that 
the inclusion of recordkeeping and compliance requirements, 
consideration of special situations, and

[[Page 50134]]

implementation information makes this rule even more complete.
    Although in support of the IFR in general, two commenters asserted 
that there are other factors that cause obesity in our society besides 
foods available in schools. For example, these commenters suggested 
that reducing physical education class in school has led to increased 
sedentary lifestyles of children. Commenters also noted the importance 
of supplementing nutrition requirements for foods available in schools 
with nutrition and health education in schools.
    Some of those commenters concerned about the competitive food 
standards established in the IFR asserted that foods sold in schools 
are not the cause of childhood obesity and that the rule will result in 
significant revenue losses for school food service, citing financial 
strain on schools caused by the recently revised NSLP standards. Most 
of these comments were opposed to the rule in its entirety and did not 
comment on specific provisions of the IFR.
    The Department acknowledges that there are many factors 
contributing to childhood obesity and supports the idea that developing 
a healthy nutrition environment in school plays an important role in 
combatting childhood obesity, as well. This rule reinforces the 
development of a healthy school environment. In addition, the 
Department recognizes that nutrition and health education as well as 
physical activity are important to the development of a healthy 
lifestyle and encourages schools to develop local school wellness 
standards that incorporate these items into the school day.
    In addition to public comments submitted during the formal comment 
period, USDA continued to respond to feedback and questions from 
program operators and other impacted parties throughout the 
implementation year in order to provide clarification, develop policy 
guidance, and inform us as the final rule was being developed.
    The description and analysis of comments in this preamble focus on 
general comment themes, most frequent comments, and those that 
influenced revisions to this final rule. Provisions not addressed in 
the preamble to this final rule did not receive significant or 
substantial public comments and remain unchanged. The reasons 
supporting the provisions of the proposed and interim regulations were 
carefully examined in light of the comments received to determine the 
continued applicability of the justifications. Those reasons, 
enunciated in the proposed and interim regulations, should be regarded 
as the basis for this final rule unless otherwise stated, or unless 
inconsistent with this final rule or this preamble. A thorough 
understanding of the rationale for various provisions of this final 
rule may require reference to the preamble of both the proposed rule 
published on February 8, 2013 (78 FR 9530) and the interim final rule 
published on June 28, 2013 (78 FR 39068).
    To view all public comments on the IFR, go to www.regulations.gov 
and search for public submissions under document number FNS-2011-0019-
4716. Once the search results populate, click on the blue text titled, 
``Open Docket Folder.'' USDA appreciates the public comments and shared 
operator experiences as they have been essential in developing a final 
rule that is expected to improve the quality of all foods sold outside 
of the NSLP and SBP.

IV. Summary of the Final Rule Competitive Food Standards

    The competitive foods and beverages standards included in the June 
28, 2013, IFR were implemented on July 1, 2014, and are retained in 
this final rule with some modifications, as noted in the following 
chart in bold letters. The modifications or changes made in this final 
rule are discussed next in the preamble.

            Summary of Final Rule Competitive Food Standards
------------------------------------------------------------------------
                                                      Exemptions to the
        Food/nutrient               Standard              standard
------------------------------------------------------------------------
General Standard for          To be allowable, a     Fresh and
 Competitive Food.             competitive FOOD      frozen fruits and
                               item must:            vegetables with no
                              (1) Meet all of the    added ingredients
                               proposed              except water are
                               competitive food      exempt from all
                               nutrient standards;   nutrient standards.
                               and.                  Canned
                              (2) Be a grain         fruits with no
                               product that          added ingredients
                               contains 50% or       except water, which
                               more whole grains     are packed in 100%
                               by weight or have     juice, extra light
                               whole grains as the   syrup, or light
                               first ingredient;     syrup are exempt
                               or.                   from all nutrient
                              (3) Have as the        standards.
                               first ingredient      Low sodium/
                               one of the non-       No salt added
                               grain main food       canned vegetables
                               groups: fruits,       with no added fats
                               vegetables, dairy,    are exempt from all
                               or protein foods      nutrient standards.
                               (meat, beans,
                               poultry, seafood,
                               eggs, nuts, seeds,
                               etc.); or.
                              (4) Be a combination
                               food that contains
                               at least \1/4\ cup
                               fruit and/or
                               vegetable..
                              (5) If water is the
                               first ingredient,
                               the second
                               ingredient must be
                               one of the above..
NSLP/SBP Entr[eacute]e Items  Any entr[eacute]e
 Sold [agrave] la Carte.       item offered as
                               part of the lunch
                               program or the
                               breakfast program
                               is exempt from all
                               competitive food
                               standards if it is
                               served as a
                               competitive food on
                               the day of service
                               or the day after
                               service in the
                               lunch or breakfast
                               program.
Grain Items.................  Acceptable grain
                               items must include
                               50% or more whole
                               grains by weight,
                               or have whole
                               grains as the first
                               ingredient.
Total Fats \1\..............  Acceptable food        Reduced fat
                               items must have       cheese (including
                               <=35% calories from   part-skim
                               total fat as served.  mozzarella) is
                                                     exempt from the
                                                     total fat standard.
                                                     Nuts and
                                                     seeds and nut/seed
                                                     butters are exempt
                                                     from the total fat
                                                     standard.
                                                     Products
                                                     consisting of only
                                                     dried fruit with
                                                     nuts and/or seeds
                                                     with no added
                                                     nutritive
                                                     sweeteners or fats
                                                     are exempt from the
                                                     total fat standard.
                                                     Seafood
                                                     with no added fat
                                                     is exempt from the
                                                     total fat standard.

[[Page 50135]]

 
                                                     Whole eggs
                                                     with no added fat
                                                     are exempt from the
                                                     total fat standard.
                                                    Combination products
                                                     other than paired
                                                     exempt foods are
                                                     not exempt and must
                                                     meet all the
                                                     nutrient standards.
Saturated Fats..............  Acceptable food        Reduced fat
                               items must have       cheese (including
                               <10% calories from    part-skim
                               saturated fat as      mozzarella) is
                               served.               exempt from the
                                                     saturated fat
                                                     standard.
                                                     Nuts and
                                                     seeds and nut/seed
                                                     butters are exempt
                                                     from the saturated
                                                     fat standard.
                                                     Products
                                                     consisting of only
                                                     dried fruit with
                                                     nuts and/or seeds
                                                     with no added
                                                     nutritive
                                                     sweeteners or fats
                                                     are exempt from the
                                                     saturated fat
                                                     standard.
                                                     Whole eggs
                                                     with no added fat
                                                     are exempt from the
                                                     saturated fat
                                                     standard.
                                                    Combination products
                                                     other than paired
                                                     exempt foods are
                                                     not exempt and must
                                                     meet all the
                                                     nutrient standards.
Trans Fats..................  Zero grams of trans
                               fat as served
                               (<=0.5 g per
                               portion).
Sugar.......................  Acceptable food        Dried whole
                               items must have       fruits or
                               <=35% of weight       vegetables; dried
                               from total sugar as   whole fruit or
                               served.               vegetable pieces;
                                                     and dehydrated
                                                     fruits or
                                                     vegetables with no
                                                     added nutritive
                                                     sweeteners are
                                                     exempt from the
                                                     sugar standard.
                                                     Dried whole
                                                     fruits, or pieces,
                                                     with nutritive
                                                     sweeteners that are
                                                     required for
                                                     processing and/or
                                                     palatability
                                                     purposes (i.e.,
                                                     cranberries, tart
                                                     cherries, or
                                                     blueberries) are
                                                     exempt from the
                                                     sugar standard.
                                                     Products
                                                     consisting of only
                                                     dried fruit with
                                                     nuts and/or seeds
                                                     with no added
                                                     nutritive
                                                     sweeteners or fats
                                                     are exempt from the
                                                     sugar standard.
Sodium......................  Snack items and side
                               dishes: <=200 mg
                               sodium per item as
                               served, including
                               any added
                               accompaniments.
                              Entr[eacute]e items:
                               <=480 mg sodium per
                               item as served,
                               including any added
                               accompaniments.
Calories....................  Snack items and side
                               dishes: <=200
                               calories per item
                               as served,
                               including any added
                               accompaniments.
                              Entr[eacute]e items:
                               <=350 calories per
                               item as served
                               including any added
                               accompaniments.
Accompaniments..............  Use of
                               accompaniments is
                               limited when
                               competitive food is
                               sold to students in
                               school. The
                               accompaniment must
                               be included in the
                               nutrient profile as
                               part of the food
                               item served and
                               meet all proposed
                               standards.
Caffeine....................  Elementary and
                               Middle School:
                               foods and beverages
                               must be caffeine-
                               free with the
                               exception of trace
                               amounts of
                               naturally occurring
                               caffeine substances.
                              High School: foods
                               and beverages may
                               contain caffeine.
Beverages...................  Elementary School
                               Plain water
                               or plain carbonated
                               water (no size
                               limit);
                               Low fat
                               milk, unflavored
                               (<=8 fl oz);
                               Non-fat
                               milk, flavored or
                               unflavored (<=8 fl
                               oz), including
                               nutritionally
                               equivalent milk
                               alternatives as
                               permitted by the
                               school meal
                               requirements;
                               100% fruit/
                               vegetable juice
                               (<=8 fl oz); and.
                               100% fruit/
                               vegetable juice
                               diluted with water
                               (with or without
                               carbonation), and
                               no added sweeteners
                               (<=8 fl oz).
                              Middle School
                               Plain water
                               or plain carbonated
                               water (no size
                               limit);
                               Low-fat
                               milk, unflavored
                               (<=12 fl oz);
                               Non-fat
                               milk, flavored or
                               unflavored (<=12 fl
                               oz), including
                               nutritionally
                               equivalent milk
                               alternatives as
                               permitted by the
                               school meal
                               requirements;
                               100% fruit/
                               vegetable juice
                               (<=12 fl oz); and
                               100% fruit/
                               vegetable juice
                               diluted with water
                               (with or without
                               carbonation), and
                               no added sweeteners
                               (<=12 fl oz).
                              High School
                               Plain water
                               or plain carbonated
                               water (no size
                               limit);
                               Low-fat
                               milk, unflavored
                               (<=12 fl oz);

[[Page 50136]]

 
                               Non-fat
                               milk, flavored or
                               unflavored (<=12 fl
                               oz), including
                               nutritionally
                               equivalent milk
                               alternatives as
                               permitted by the
                               school meal
                               requirements;
                               100% fruit/
                               vegetable juice
                               (<=12 fl oz);
                               100% fruit/
                               vegetable juice
                               diluted with water
                               (with or without
                               carbonation), and
                               no added sweeteners
                               (<=12 fl oz);
                               Other
                               flavored and/or
                               carbonated
                               beverages (<=20 fl
                               oz) that are
                               labeled to contain
                               <5 calories per 8
                               fl oz, or <=10
                               calories per 20 fl
                               oz; and
                               Other
                               flavored and/or
                               carbonated
                               beverages (<=12 fl
                               oz) that are
                               labeled to contain
                               <=40 calories per 8
                               fl oz, or <=60
                               calories per 12 fl
                               oz.
Sugar-free Chewing Gum......  Sugar-free chewing
                               gum is exempt from
                               all of the
                               competitive food
                               standards and may
                               be sold to students
                               at the discretion
                               of the local
                               educational agency.
------------------------------------------------------------------------

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

    \1\ Please note that the Total Fat nutrient standard is being 
maintained as an interim final standard. The Department is 
requesting additional comments on this standard in this rulemaking. 
Please see further discussion in Part V of this preamble.
---------------------------------------------------------------------------

V. Discussion of Comments and Changes to the Final Rule

Definitions

    The amendments made by the HHFKA stipulate that the nutrition 
standards for competitive food apply to all foods and beverages sold: 
(a) Outside the school meals programs; (b) on the school campus; and 
(c) at any time during the school day. The IFR at Sec.  210.11(a) 
included definitions of Competitive food, School day, and School 
campus.
    Competitive food means all food and beverages other than meals 
reimbursed under programs authorized by the NSLA and the CNA available 
for sale to students on the School campus during the School day. 
Fifteen comments were received on this definition. Several commenters, 
including advocacy organizations and professional associations, 
generally agreed with the definition for ``competitive food.'' More 
specifically, these commenters supported that the competitive food 
standards will apply to all foods and beverages sold across the school 
campus and throughout the school day (until at least 30 minutes after 
school ends). An advocacy organization and an individual commenter 
suggested that FNS substitute the word ``served'' for the term 
``available for sale'' in the definition of ``competitive food'' 
because doing so would send a more consistent message to students and 
families by assuring that all foods brought into the school were 
subject to the same standards. The Department wishes to point out that 
the amendments made by the HHFKA do not provide the Secretary with 
jurisdiction over foods brought from outside of the school. Therefore, 
the definition for ``competitive food'' is unchanged in this rule.
    School day means, for the purpose of competitive food standards 
implementation, the period from the midnight before, to 30 minutes 
after the end of the official school day. Thirty comments were received 
on this definition. Nine of those comments mentioned the applicability 
of the IFR to non-school hours.
    Some commenters, including a trade association, a food 
manufacturer, and a school district, expressed support for the IFR 
definition for ``school day.'' However, more commenters disagreed with 
the IFR definition of ``school day'' primarily requesting that the 
definition should be expanded to include all times during which 
students are on campus and engaged in school-sponsored activities or 
all after-school hours in order to achieve the objective of promoting 
healthy food choices for children. Some commented that imposing 
competitive food standards during the school day but eliminating them 
after school sends a mixed message with regard to the need to eat 
healthy foods at all times.
    In contrast, a trade association and a food manufacturer suggested 
that USDA should more narrowly define ``school day'' to exclude foods 
sold at school programs and activities that occur before the start of 
the instructional school day to achieve consistency with the treatment 
of afterschool activities. Other individual commenters suggested that 
the school day should start at the beginning of school and end at the 
dismissal bell in order to allow morning and after school sales of 
noncompliant competitive foods.
    The Department wishes to reiterate that section 208 of the HHFKA 
amended the CNA to require that the competitive food standards apply to 
foods sold at any time during the school day, which does not include 
afterschool programs, events and activities. In addition, as a 
reminder, these standards are minimum standards. If an LEA wishes to 
expand the application of the standards to afterschool activities, they 
may do so. The definition of ``school day'' is, therefore, unchanged in 
this final rule. In addition, in order to clarify the applicability of 
the competitive foods nutrition standards, if a school operates a 
before or after-school program through the Child and Adult Care Food 
Program or the NSLP, the meal pattern requirements of the appropriate 
program shall be followed.

Paired Exempt Foods

    The competitive food standards provide exemptions for certain foods 
that are nutrient dense, even if they may not meet all of the specific 
nutrient requirements. For example, all fresh, frozen and most canned 
fruits as specified in Sec.  210.11(d)(1) are exempt from all of the 
nutrient standards because we want to encourage students to consume 
more of these foods. Similarly, peanut butter and other nut butters are 
exempt from the total fat and saturated fat standards, since these 
foods are also nutrient dense and primarily consist of healthier fats.
    A combination food is defined as a product that contains two or 
more foods representing two or more of the food groups: Fruit, 
vegetable, dairy, protein or grains. When foods are combined, they no 
longer retain their individual exemptions and must meet the nutrient 
standards that apply to a single item.

[[Page 50137]]

    However, the regulation did not specifically address the treatment 
of foods that are exempt from the regulatory requirements when they are 
simply paired and packaged with other products (without added 
ingredients) that are also exempt from one or more of the standards. 
Many of these ``paired exemptions'' are nutrient dense and contain 
foods that meet the intent of the competitive foods requirements. In 
response to concerns raised by operators in the first year of 
implementation, FNS issued policy guidance clarifying that ``paired 
exempt foods'' retain their individually designated exemption for total 
fat, saturated fat, and/or sugar when packaged together and sold. 
Paired exempt foods are required to meet the designated calorie and 
sodium standards specified in paragraphs Sec.  210.11(i) and (j) at all 
times. Some examples of paired exemptions include:
     Peanut Butter and celery. Peanut butter is exempt from the 
total fat and saturated fat requirements. When it is paired with a 
vegetable or fruit, such as celery, the paired snack retains the total 
fat and saturated fat exemptions and may be served as long as the 
calorie and sodium limits are met.
     Celery paired with peanut butter and unsweetened raisins. 
As noted above, celery and peanut butter both have exemptions. 
Similarly, dried fruit, such as unsweetened raisins, are exempt from 
the sugar limit. However, calorie and sodium limits still apply to the 
snack as a whole.
     Reduced fat cheese served with apples. Reduced fat cheese 
is exempt from the total fat and saturated fat limits. When it is 
paired with a vegetable or fruit, such as apples, the paired snack is 
only required to meet the calorie and sodium limits.
     Peanuts and apples. Peanuts are exempt from the total fat 
and saturated fat limits. When peanuts are paired with a vegetable or 
fruit, such as apples, the paired snack is only required to meet 
calorie and sodium limits.
    Operator implementation using the policy guidance was positive. 
Therefore, FNS is formalizing this policy clarification through this 
final rule by adding a definition of Paired exempt foods at Sec.  
210.11(a)(6).

Definition of Entr[eacute]e Item

    Entr[eacute]e item was defined in Sec.  210.11(a)(3) as an item 
that includes only the following three categories of main dish food 
items:
     A combination food of meat or meat alternate and whole 
grain rich food;
     A combination food of vegetable or fruit and meat or meat 
alternate; or
     A meat or meat alternate alone, with the exception of 
yogurt, low-fat or reduced fat cheese, nuts, seeds and nut or seed 
butters.
    During the course of implementation, some questions were received 
with regard to packaging and selling two snack items together, such as 
a cheese stick and a pickle or a whole grain-rich cookie and yogurt, 
and considering that item to be an entr[eacute]e in order to sell 
products with the higher entr[eacute]e calorie and sodium limits. The 
proposed rule clearly expressed the Department's intent that an 
entr[eacute]e be the main dish in the meal. Therefore, in order to 
clarify the definition of ``Entr[eacute]e item'', the phrase ``intended 
as the main dish'' is being added to the regulatory definition.
    Some commenters, including trade associations and food 
manufacturers, urged FNS to expand the definition of entr[eacute]e to 
include a grain only, whole-grain rich entr[eacute]e, on the basis that 
such foods are commonly served entr[eacute]e items in the SBP (e.g., 
pancakes, cereal, or waffles). A trade association and a food 
manufacturer commented that if a breakfast item does not qualify for 
the definition of entr[eacute]e item, it will be restricted to the 200-
calorie limit for snack items, which falls well below the minimum 
calorie requirements for breakfast under the SBP.
    An individual commenter recommended creating a separate definition 
of ``breakfast entr[eacute]e'' to allow grain/bread items as an option. 
A professional association and a food manufacturer requested that 
typical breakfast foods, such as a bagel and its accompaniments be 
considered an entr[eacute]e rather than a snack/side item at breakfast 
time or at lunch time. However, a State department of education, a 
community organization, and some individual commenters recommended that 
FNS not allow a grain-only entr[eacute]e to qualify as a breakfast 
entr[eacute]e item. The community organization argued that these items 
are of minimal nutritional value and typically involve the addition of 
high-sugar syrups. The State department of education commented that 
allowing grain-only entr[eacute]e items under the competitive food 
regulations would allow schools to sell SBP entr[eacute]e items such as 
muffins, waffles, and pancakes that would not otherwise meet the 
competitive food standards.
    In view of the comments as well as input received on grain-only 
entr[eacute]es during implementation of the IFR, the Department 
published Policy Memorandum SP 35-2014 to clarify that, although grain-
only items were not included in the IFR as entr[eacute]es, an SFA is 
permitted to determine which item(s) are the entr[eacute]e items for 
breakfasts offered as part of the SBP. The policy flexibility was well 
received and, therefore, this final rule amends the definition of 
``Entr[eacute]e item'' to include reference to whole grain rich, grain-
only breakfast items served in the SBP, making them allowable breakfast 
entr[eacute]es subject to the entr[eacute]e exemptions allowed in the 
rule on the day of and the day after service in the SBP. Such 
entr[eacute]e items also may be served at lunch in the NSLP on the day 
of or the day after service in the SBP.
    In summary, this final rule makes no changes to the IFR definitions 
of Competitive food, Combination foods, School day, and School campus 
at Sec.  210.11(a). This rule adds a definition of Paired exempt foods 
to allow paired exemption items to be sold in schools, and amends the 
definition of Entr[eacute]e item to include: (1) A specific reference 
to grain only breakfast entr[eacute]es served in the SBP, and (2) to 
incorporate the term ``intended as the main dish'' into the definition 
to further clarify the requirements for entr[eacute]es as well as 
entr[eacute]e exemptions.

State and Local Educational Agency Standards

    Under Sec.  210.11(b)(1) of the IFR, State and/or LEAs have the 
discretion to establish more rigorous restrictions on competitive food, 
as long as they are consistent with the provisions set forth in program 
regulations.
    Thirty-five comments addressed this discretion and numerous 
commenters expressly supported the provision. Several commenters, 
including a school professional association, and individual commenters, 
urged FNS to not allow additional standards for competitive foods 
beyond the Federal standards because a national standard will allow 
manufacturers to produce food items at a lower cost. A trade 
association recognized that the IFR may not be preemptive, but 
requested that USDA not encourage States to create additional criteria 
for competitive foods. This commenter expressed concerns that 
inconsistent State policies for competitive foods will limit 
reformulation opportunities.
    However, 12 advocacy organizations and an individual commenter 
expressed the need for a national framework for competitive foods and 
also expressed support for allowing States and localities to implement 
locally-tailored, standards that are not inconsistent with the Federal 
requirements. Similarly, some school professional associations and 
individual commenters supported allowing States the flexibility to 
create

[[Page 50138]]

their own restrictions on competitive foods, as needed.
    The ability of State agencies and LEAs to establish additional 
standards that do not conflict with the Federal competitive food 
requirements is consistent with the intent of section 208 of the HHFKA, 
and with the operation of the Federal school meal programs in general. 
That discretion also provides an appropriate level of flexibility to 
States and LEAs to set or maintain additional requirements that reflect 
their particular circumstances consistent with the development of their 
local school wellness policies. Any additional restrictions on 
competitive food established by school districts must be consistent 
with both the Federal requirements as well as any State requirements.
    This final rule makes no change to the provision allowing States 
and LEAs to establish additional competitive food standards that are 
not inconsistent with the Federal requirements. This provision may be 
found at Sec.  210.11(b)(1).

Suggestions To Prohibit Foods With Artificial Colors, Flavors and/or 
Preservatives

    Four individual commenters expressed concerns about continuing to 
allow the sale of foods that contain genetically modified organisms 
(GMO) and foods containing artificial ingredients, colors, and flavors. 
Just over 30 comments were received on other issues relating to food 
requirements. These comments included suggestions such as eliminating 
or putting limitations on high fructose corn syrup, sugar, fiber, and 
GMO foods. One individual commenter urged that all foods sold in 
schools should be organic.
    The Food and Drug Administration (FDA) makes determinations 
regarding the safety of particular food additives and USDA defers to 
FDA on such determinations. As discussed previously, these standards 
are minimal standards that must be met regarding competitive foods sold 
in schools. This final rule continues to provide the flexibility to 
implement additional standards at the State and/or local level.

General Competitive Foods Standards

    The rationale for many comments received on the IFR was consistency 
with the HUSSC and Alliance for a Healthier Generation standards. The 
Department wishes to point out that while those standards were 
considered in the development of the proposed rule, both of those 
standards have conformed to the USDA competitive foods standards 
subsequent to publication of the IFR.

Combination Foods

    The general nutrition standard in the rule at Sec.  
210.11(c)(2)(iv) specifies that combination foods must contain \1/4\ 
cup of fruit or vegetables. The Department received 45 comments on this 
provision of the IFR, the majority of which urged us to reduce the 
fruit or vegetable components to \1/8\ cup to be consistent with NSLP/
SBP standards, which allow schools to credit \1/8\ cup of fruit or 
vegetable toward the total quantity required for school meals. As 
indicated in the preamble to the IFR rule, maintaining the higher \1/4\ 
cup quantity requirement for fruits/vegetables in combination foods 
generally supports the availability of more nutritious competitive food 
products and is consistent with the Institute of Medicine (IOM) 
recommendations and the DGA. Competitive foods are evaluated on the 
basis of the qualities of the individual product being sold as opposed 
to the quantity of the ingredients of the product being credited toward 
the meal pattern requirement in the NSLP or SBP. Moreover, it is 
important to note that combination foods with less than \1/4\ cup of a 
fruit or vegetable may indeed qualify under the other food requirements 
specified in the rule, such as the whole grain rich or food group 
criteria, depending on the composition of the food item. It is only for 
those foods that qualify solely on the basis of being a competitive 
food product that contains a fruit or vegetable that this \1/4\ cup 
specification is required. This food standard as specified in Sec.  
210.11(c)(2)(iv) is, therefore, retained in the final rule.

Whole Grains

    One of the general standards for competitive foods included in 
Sec.  210.11(c)(2)(ii) and (e) requires that grain products be whole-
grain rich, meaning that they must contain 50 percent or more whole 
grains by weight or have whole grains as the first ingredient.
    About 60 comments addressed this IFR requirement. Many commenters, 
including a State department of education, urged USDA to make the 
competitive food whole grain standard consistent with the NSLP/SBP 
whole grain standard. Several commenters, including a school 
professional association and individual commenters, supported the 
``whole grain rich'' requirement. In particular, food manufacturers, 
trade associations, and a school district emphasized the importance of 
including the criteria that the whole grains per serving should be 
greater than or equal to 8 grams in the whole grain-rich identifying 
criteria. Three individual commenters generally opposed the whole 
grain-rich requirement.
    As indicated in the preamble to the proposed rule, this standard is 
consistent with the DGA recommendations, the whole grain-rich 
requirements for school meals and the prior HUSSC whole grain-rich 
requirement (HUSSC has subsequently updated the standards to conform to 
these competitive food standards). The Department wishes to point out 
that the whole grain criteria for competitive foods is used as a 
criterion for determining the allowability of an individual item to be 
sold as a competitive food, while school meals' whole grain-rich 
criteria determine the crediting of the menu items toward the grain 
component of the meal. Allowing the additional measures for grain 
suggested by some commenters such as >=8 grams of whole grain would not 
ensure that grain products in competitive food contain at least 50 
percent whole grains and would require additional information from the 
manufacturer. Therefore, the whole grain-rich standard established in 
the interim final rule is affirmed in this final rule.
    The food industry has made a significant effort to reformulate 
products to meet this standard and to reinforce the importance of whole 
grains to the general public as well. These efforts have resulted in 
the availability of numerous whole grain-rich products in the general 
public marketplace as well as in the foods available for service and 
purchase in schools. Maintaining this standard ensures that students 
have the flexibility to make choices among the numerous whole grain-
rich products that are now available to them in school.
    Since this competitive food standard is consistent with the DGA 
recommendations, the whole grain-rich requirements for school meals, 
and HUSSC standards, this final rule affirms the requirement as 
established by interim final rule.

DGA Nutrients of Public Health Concern

    In recognition of the marketplace and implementation limitations, 
but also mindful of important national nutrition goals, the IFR 
implemented a phased-in approach to identifying allowable competitive 
foods under the general standard. For the initial implementation period 
in School Year 2014-15 through June 30, 2016 (School Year 2015-16), the 
general food standard included a criterion that if a competitive food 
met

[[Page 50139]]

none of the other General Standards, that food may be considered 
allowable if it contained 10 percent of the Daily Value of a nutrient 
of public health concern (i.e., calcium, potassium, vitamin D, or 
dietary fiber). Effective July 1, 2016, this criterion was removed as a 
general criterion.
    Eight commenters, including some food manufacturers, opposed the 
phase out of this criterion as a General Standard for allowable foods. 
However, information available to the Department indicates that 
industry has made major strides over the past three years and many 
manufacturers have come into compliance with the competitive food 
standards by reformulating their products in recognition of the fact 
that the 10-percent DV General Standard would become obsolete as of 
July 1, 2016. Prior to July 1, 2016, fewer than 21 products that 
depended solely on the 10-percent DV General Standard appeared on the 
Alliance for a Healthier Generation (AHG) Food Navigator as Smart 
Snacks compliant foods. There are currently about 2,500 Smart Snacks 
compliant products listed in the AHG product database. This means that 
items that had qualified based solely upon the 10-percent DV General 
Standard represented less than 1 percent (0.84 percent) of the products 
that had been captured in the Alliance Navigator.
    Therefore, this final rule makes no changes to the General 
Standards for competitive foods established by the IFR and the 10-
percent DV standard has expired as scheduled. Eliminating the 10-
percent DV criterion more closely aligns the competitive food standards 
with the DGA, as required by the HHFKA.
    Elimination of this standard aligns the competitive foods rule with 
the DGA which states that ``nutrients should come primarily from 
foods'' as well as the IOM recommendations which indicate that this 
approach ``reinforces the importance of improving the overall quality 
of food intake rather than nutrient-specific strategies such as 
fortification and supplementation.''

Specific Nutrient Standards Sec.  210.11(d)-(k)

    In addition to the General Standards, the rule includes nutrient 
standards for specific nutrients contained in allowable foods. These 
include standards for total fat, saturated fat, trans fat, total 
sugars, calories and sodium. These standards apply to competitive foods 
as packaged or served to ensure that the competitive food standards 
apply to the item sold to the student.
    Twenty commenters expressed general support for the IFR nutrient 
standards for competitive foods without discussing a specific element 
of the nutrient standards. Several advocacy organizations and 
professional associations agreed with requiring that all foods sold in 
schools meet the nutrient standards and with limiting calories, fats, 
sugars, and sodium in snack foods and beverages. A health care 
association expressed support for the nutrition standards adopted in 
the IFR suggesting that any changes made should strengthen the 
standards and not weaken them. Another health care association 
expressed the belief that the established limits will inherently 
preclude the sale of candy and other confections and products with 
added sugars that promote tooth decay. An individual commented that the 
nutrient standards will eliminate many seemingly healthy foods that are 
surprisingly laden with sugar, calories, fat, or salt. A trade 
association supported the use of a nutrition criteria-based system for 
competitive food standards, as opposed to a structure that allows and 
disallows specific foods, because manufacturers will have the 
opportunity to reformulate and innovate to meet the rule's provisions.
    Seven commenters expressed general opposition to the IFR nutrient 
standards for competitive foods without discussing a specific element 
of the nutrient standards. A few individual commenters expressed 
concerns that the IFR nutrient standards will encourage chemically 
processed low-fat foods and sugar substitutes at the expense of whole 
foods and natural sugars. A food manufacturer urged USDA to simplify 
the criteria for competitive foods by using only the calorie limit and 
eliminating the total fat, saturated fat, and sugar limits, arguing 
that the combined calorie limit and food group standards would be less 
burdensome to implement and would inherently limit fats and sugars.
    The overwhelming majority of comments received on the proposed rule 
supported the nutrient standards and those standards were incorporated 
into the IFR with some minor changes. The IFR comments received on this 
issue were minimal and primarily supported the established standards. 
Therefore, this rule finalizes the nutrient standards as included in 
the IFR with the addition of several modifications being made to items 
exempt from those nutrient standards as discussed below.

Fruits and Vegetables

    Generally consistent with both the IOM and the DGA, the IFR 
included an exemption to the nutrient standards for fresh, frozen and 
canned fruits and vegetables with no added ingredients except water or, 
in the case of fruit, packed in 100 percent fruit juice, extra light 
syrup or light syrup; and for canned vegetables that contain a small 
amount of sugar for processing purposes in order to maintain the 
quality and structure of the vegetable.
    Ten comments expressed support for the IFR exemption from the 
nutrient standards for fresh, frozen, or canned fruits and vegetables. 
In particular, a school professional association and some individual 
commenters agreed with the decision to include ``light syrup'' in the 
exemption. A food manufacturer supported the inclusion of all forms of 
fruit, and products made with fruit, without added nutritive 
sweeteners, as competitive foods.
    Three commenters recommended that the exemption for fruits and 
vegetables be more stringent. These commenters suggested that any added 
syrup contributes added unneeded sugars. Two trade associations 
supported the IFR provision that fruit packed in light syrup is exempt 
from the nutrition standards.
    However, a few comments were received addressing the exemption 
parameters for canned vegetables--allowing an exemption only for those 
canned vegetables containing water and a small amount of sugar for 
processing. A trade association and a food manufacturer stated that 
they were not aware of any canned vegetables that contain only water 
and sugar for processing purposes. They indicated that sodium, citric 
acid, and other ingredients are commonly used in the processing of 
canned vegetables. They also pointed out that those processing aids are 
allowed to be used in the low sodium vegetables packed for the USDA 
Foods Program.
    The Department wishes to point out that, although some sodium is 
used in processing canned vegetables, most canned vegetables would 
still meet the nutrient standards for sodium without being given a 
specific exemption. However, in light of the important nutrients 
provided by vegetables, for ease of operator implementation and in 
recognition of common processing procedures, the Department agrees that 
low sodium/no salt added canned vegetables should also benefit from the 
fruit and vegetable exemption. This final rule, therefore, revises the 
canned vegetable exemption to allow low

[[Page 50140]]

sodium/no salt added canned vegetables with no added fat to be exempt 
from each of the competitive food nutrient standards.

Total Fat, Saturated Fat and Trans Fat

    To qualify as an allowable competitive food, the IFR at Sec.  
210.11(f) requires that no more than 35 percent of the total calories 
per item as packaged or served be derived from total fat and requires 
that the saturated fat content of a competitive food be less than 10 
percent of total calories per item as packaged or served. In addition, 
as specified in Sec.  210.11(g), a competitive food must contain zero 
grams of trans fat per portion as packaged or served (not more than 0.5 
grams per portion).
    While there are no exemptions from the trans fat standard, there 
are a number of exemptions from the total fat and the saturated fat 
standards. Seafood with no added fat is exempt from the total fat 
standard but is still subject to the saturated fat, trans fat, sugar, 
calorie and sodium standards. Exemptions included in the IFR to both 
the total fat and saturated fat standards include reduced fat cheese 
and part skim mozzarella cheese not included in a combination food 
item, nuts and seeds and nut/seed butters not included in a combination 
food item and products that consist of only dried fruit with nuts and/
or seeds with no added nutritive sweeteners or fat. Such exempt 
products are still subject to other competitive food nutrient standards 
such as the trans fat, sugar, calorie and sodium standards.

Total Fat

    Fifteen commenters, including a school professional association and 
several individuals, expressed support for the IFR competitive food 
restriction on total fat. No comments were received to make this 
standard more stringent. However, about 30 comments opposed the IFR 
restriction on total fat, arguing in favor of either making the 
restriction less stringent or eliminating the standard entirely. Two 
trade associations asserted that the total fat limit is inconsistent 
with the NSLP/SBP standards, which limit saturated fat and trans fat 
but not total fat. These commenters suggested that limitations on 
calories, saturated fat, and trans fat in competitive food standards 
will ensure that the foods are low in total fat. Similarly, a school 
district also recommended removing the total fat limit, asserting that 
such a limit is inconsistent with the NSLP/SBP requirements and will 
place an undue burden on menu planners.
    Fifty-five comments addressed the IFR exemptions from the total fat 
limit. Three trade associations and a food manufacturer expressed 
support for the exemption for part-skim mozzarella. Two individual 
commenters, however, opposed the exemption for reduced-fat cheese and 
part-skim mozzarella, asserting that whole foods may be healthier than 
low-fat alternatives. Three trade associations and a school district 
favored extending the exemption for reduced-fat cheese to all cheese 
that meets the calorie limits.
    Some commenters suggested various other modifications to the 
standards for individual foods, such as eggs, yogurt, and full fat 
cheese. A couple of comments dealt with various combinations of food 
items that are effectively dealt with in this final rule with the 
addition of a definition of Paired exempt foods discussed previously in 
this preamble.
    One commenter mistakenly noted that alternative milk products 
allowed in the reimbursable meals programs may not meet these 
requirements. We wish to clarify that total fat, saturated fat and 
trans fat standards do not apply to beverages.
    The Department recognizes that there may be foods that are commonly 
enjoyed by students and are generally healthy, but do not currently 
meet the competitive food standards due to the total fat content. 
Specifically, we are aware that some legume-based spreads/dips may 
offer significant nutritional benefits, but may not be able to meet 
total fat standards due to the inherent fat content of key ingredients 
in traditional legume based spreads or dips, such as hummus. Another 
common and generally healthy snack food is guacamole. Although avocado 
is currently exempt from the total fat standard because it is a fruit, 
when other non-fruit or vegetable ingredients are added to make a dip, 
the exemption is lost and the total fat standard is exceeded. Other 
common and generally healthy foods that may benefit from removal of the 
total fat standard include snack bars and salads with dressing.
    Because the DGAs are based on the latest scientific research and do 
not have a key recommendation for total fat and to address commenter 
requests for consistency between standards for competitive foods sold 
in schools and the NSLP/SBP, the Department has determined that further 
comment should be accepted on the total fat standard. In particular, 
comments are requested on whether the standard for total fat should be 
eliminated given that there will continue to be standards in place for 
calories, sodium, saturated fat, and trans fats which will limit 
unhealthy fats. Comments are also sought on whether the total fat 
standard should be maintained but should exempt certain food items. 
While the total fat standard as currently implemented will continue to 
be in place, this single, individual standard remains an interim final 
standard. The Department, as previously noted, will accept public 
comments on this standard only. The Department is interested in 
comments related to the impact revising or eliminating the total fat 
standard may have. This could include allowing more items to be sold 
that are lower in unhealthy, saturated fats but that might be higher in 
healthy, unsaturated fats and simplifying implementation for local 
operators. Commenters also should consider whether there could be 
unintended consequences to revising or eliminating the total fat 
standard. As noted above, commenters should keep in mind that the 
standards for calories, sodium, saturated fat, and trans fat remain in 
place and will continue to limit the types of foods that may be sold in 
schools.

Saturated Fat (<10% of Calories)

    Twenty comments expressed support for the IFR competitive food 
restriction on saturated fat. A school district recommended consistency 
with NSLP/SBP by only calculating saturated fat and total calories.
    Twenty-five commenters were opposed to the IFR restriction on 
saturated fat, arguing in favor of either making the restriction less 
stringent or eliminating the standard entirely. A school professional 
association and individual commenters argued that the standard is too 
restrictive and will exclude grilled cheese, chicken tenders, hot dogs, 
pizza, and healthy option entr[eacute]es.
    Forty-five comments addressed the IFR exemptions from the saturated 
fat limit. Most of the comments requested saturated fat exemptions for 
the same products for which they requested total fat exemptions 
discussed above. Three trade associations and a school district favored 
extending the saturated fat exemption to all cheese that meets the 
calorie limits.
    Additional comments specifically addressed exemptions from the 
saturated fat limit. A professional association and several individual 
commenters suggested that the saturated fat standard should exclude 
eggs or cheese packaged for individual sale and for non-fried 
vegetables and legumes.
    Seven comment letters included other comments relating to the IFR 
saturated

[[Page 50141]]

fat limit. Two trade associations and a food manufacturer requested 
that FNS clarify a conflict in the IFR. These commenters stated that 
the ``Summary of Major Provisions'' in the preamble states that 
competitive foods must contain ``no more than 10 percent'' of total 
calories from saturated fat, but Sec.  210.11(f)(1)(ii) states that the 
saturated fat content of a competitive food must be ``less than 10 
percent'' of total calories. The Department wishes to clarify that the 
requirement as included in the regulatory provision at Sec.  
210.11(f)(1)(ii) that the saturated fat content of a competitive food 
must be less than 10 percent of total calories is correct.
    The Department does not agree that all cheese should be exempt from 
the total fat and saturated fat standards because the total fat 
standard included in the IFR is identical to the recommended IOM 
standard for total fat, and the saturated fat standard is consistent 
with the DGA recommendations.

Trans Fat (0g as Stated on the Label)

    Twenty comments addressed the IFR trans fat restriction. Several 
commenters, including a school professional association and some 
individual commenters who supported the total fat and saturated fat 
limits, also expressed support for the IFR trans fat limit. A school 
district also expressed support for the IFR limitation of zero grams of 
trans fat in competitive foods. To reduce confusion among school food 
service workers and State auditors, a trade association and a food 
manufacturer recommended that the phrasing of the trans-fat provision 
for competitive foods should be consistent with the provision in the 
NSLP/SBP requirements, which does not apply to naturally occurring 
trans fats present in meat and dairy products. While trans fat content 
is normally indicated on the label, the Department will provide 
additional guidance as necessary on this issue through technical 
assistance resources.

Exemption for Eggs With No Added Fat

    The competitive food standards in the IFR provided that, in order 
to qualify as an allowable competitive food, no more than 35 percent of 
calories may be contributed by total fat, and less than 10 percent of a 
food's calories may come from saturated fat. Eggs do exceed these fat 
standards. However, similar to nut butters, reduced-fat cheese, and 
seafood, eggs exceed the competitive foods fat standards and are 
nutrient dense. Eggs are high in protein and contain essential 
nutrients including, B vitamins, Vitamin E, Vitamin D, iron, zinc, and 
magnesium. While eggs are high in fat, the DGA recommends increased 
consumption of nutrient dense foods and includes eggs in a healthy 
eating pattern. Evidence suggests that one egg a day does not increase 
a person's risk for high cholesterol or cardiovascular diseases. In 
addition, some previous State agency standards as well as the previous 
standards implemented by the Alliance for a Healthier Generation did 
allow eggs for the reasons cited above.
    Therefore, in response to comments, the nutrient profile of eggs 
mentioned above and operator requests to allow this nutrient dense and 
low cost option, this final rule is amended to add an exemption from 
the total fat and saturated fat standards for whole eggs with no added 
fat. This exemption appears in Sec.  210.11(f)(iv).

Calorie and Sodium Standards for Competitive Foods

Calories
    Some commenters supported the IFR competitive food calorie limits. 
In particular, a health care association urged USDA not to grant 
requests to increase the IFR calorie limits because doing so would 
increase the likelihood that students would choose and consume more 
than the recommended number of calories, which this commenter asserted 
would undermine USDA's efforts to address the childhood obesity 
epidemic. A food manufacturer urged replacing the sugar and fats 
nutrition standards with only the calorie limit.
    Many commenters expressed opposition to the calorie limits for 
competitive foods. Commenters said the proposed limits were too 
stringent and would limit student access to many food products, 
particularly a la carte foods sold during the meal service. Some 
commenters provided specific suggestions for alternative calorie limits 
for snacks, ranging from 240 to 300 calories, and for entr[eacute]es, 
ranging from 400 to 500 calories.
    Fifteen commenters addressed age and grade groupings, several 
suggesting separate calorie limits by grade, similar to the structure 
of the school meal patterns, reasoning that children have different 
calorie needs as they grow.
    This final rule retains the calorie limits for snacks/side dishes 
(200 calories per item as packaged or served), and entr[eacute]e items 
(350 calories per item as packaged or served), which are consistent 
with IOM recommendations and some voluntary standards. The Department 
does not agree that higher limits are appropriate, as suggested by some 
commenters, particularly since it is not possible to limit the number 
of competitive food items that may be purchased. We appreciate that 
separate calorie limits by grade levels for snacks would align with 
existing voluntary standards that many schools have adopted, and would 
be more tailored to the nutritional needs of children of different 
ages. However, separate calorie limits for different grade levels would 
also add complexity for local program operators with schools of varying 
grade levels. State agencies or school districts could choose to 
implement varying calorie limits based on grades, provided the maximum 
level does not exceed the limit in this final rule. Please note that 
the calorie limit for entr[eacute]e items would apply to all 
entr[eacute]es that do not meet the exemption for NSLP/SBP 
entr[eacute]e items.
    The Department wishes to point out that great strides have been 
made in the availability of competitive foods that meet the standards. 
Numerous products have been reformulated and/or repackaged to ensure 
that the products meet the competitive foods standards and those 
products have been made available to schools for sale to students. In 
addition, many changes have been made to the a la carte offerings 
available in the cafeteria and these changes are contributing greatly 
to the overall healthy environment that is so important in our schools.
Sodium
    Under the IFR at Sec.  210.11(i), snack items and side dishes sold 
[agrave] la carte could contain no more than 200 calories and 230 mg of 
sodium per portion as served, including the calories and sodium in any 
accompaniments, and must meet all other nutrient standards for non-
entr[eacute]e items. The IFR stipulated that as of July 1, 2016, snack 
items and side dishes must have not more than 200 calories and 200 mg 
of sodium per item as packaged or served. Under the IFR at Sec.  
210.11(j), entr[eacute]e items sold [agrave] la carte could contain no 
more than 350 calories and 480 mg sodium per portion as served, 
including any accompaniments, and meet all other nutrient standards.
    Several comments, including one from a health care association and 
two from individuals, agreed with the IFR sodium provisions. The health 
care association argued that although some commenters urge USDA to 
create ``consistent'' sodium standards for the NSLP/SBP and competitive 
foods standards, the sodium limits for the school meals program apply 
to an entire meal, while the sodium limits for competitive foods only 
apply to one component of a meal--a single entr[eacute]e,

[[Page 50142]]

side dish, or snack. Therefore, this commenter reasoned that the sodium 
limits for competitive food items should be lower than those for a 
reimbursable meal. An individual commenter acknowledged that sodium 
limits will alter the tastes of many foods, but suggested that there 
are many other spices, herbs, and other ways to enhance the flavors of 
foods without increasing the risk of hypertension.
    Several commenters recommended that the sodium reductions should 
continue to be phased in gradually to allow taste preferences and 
manufacturers additional time to adjust. Some commenters provided 
suggestions for higher sodium limits, ranging from 230 mg to 360 mg for 
snacks and 550 mg to 650 mg for entr[eacute]es. One commenter, a 
manufacturer, wanted USDA to add an exemption to the sodium limit for 
natural reduced fat cheese and reduced fat, reduced sodium pasteurized 
processed cheese.
    The Department's standards for sodium were based on the IOM 
recommendations. The proposed ``per portion as served'' standards for 
competitive food were considered in the context of the DGAs and of the 
overall sodium limits for school meals, the first of which took effect 
in School Year 2014-15, the same school year these competitive food 
standards were implemented. USDA acknowledges that sodium reduction is 
an issue that impacts the broader marketplace, not just schools, and 
understands that sodium reduction is a process that will take time.
    In recognition of the fact that there were existing voluntary 
standards for competitive food that had the higher sodium limit of 230 
mg for snacks/side dishes, which meant there were existing products 
that had been formulated to meet the higher standard available to 
schools, the IFR set the initial limit for sodium for snacks and side 
dishes at 230 mg per item as packaged or served, for the first two 
years of implementation of these standards. The IFR provided that, as 
of July 1, 2016, the sodium limit for snacks and side dishes shall be 
reduced to 200 mg per item as packaged or served.
    It is evident that many manufacturers have developed new products 
or reformulated existing products to meet the July 1, 2016, 200 mg 
standard. The Department believes that the phased in approach taken in 
the IFR did work to ensure product availability for schools for initial 
implementation and provided ample time for manufacturers to adjust to 
meet the lower limit. Therefore, this final rule does not change the 
sodium requirement for snacks and side dishes. The sodium standard of 
230 mg for snacks and side dishes expired as scheduled and the 200 mg 
standard is implemented as of July 1, 2016. In addition, the 
entr[eacute]e limit of 480 mg per item as packaged and served will 
remain in place. The Department wishes to point out that any 
entr[eacute]es served in school meals will be covered under the NSLP/
SBP entr[eacute]e item exemption in Sec.  210.11(c)(3)(i).

Total Sugars in Competitive Foods

    The IFR at Sec.  210.11(h)(1) provided that not more than 35 
percent of the weight per item as packaged and served could be derived 
from total sugars. In addition, Sec.  210.11(h)(2) provided the 
following exemptions to the total sugar standard:
     Dried whole fruits or vegetables; dried whole fruit or 
vegetable pieces; and dehydrated fruits or vegetables with no added 
nutritive sweeteners;
     Products that consist of only dried fruit with nuts and/or 
seeds with no added nutritive sweeteners or fat; and
     Dried fruit with nutritive sweeteners required for 
processing and/or palatability purposes. (At this time, this applies to 
dried cranberries, tart cherries and dried blueberries only.)
    Most commenters generally supported the application of the total 
sugars by weight standard. Many commenters stated that this standard 
provides flexibility and would allow the sale of more products that are 
favorites among students.
    A trade association expressed the opinion that a restriction on 
sugar is not a necessary component of the competitive food standards 
because calorie limits will prevent excess sugar consumption. A State 
department of education and an individual suggested expressing the 
sugar limit in grams rather than percentages. Several commenters 
indicated that sugar limits would force manufacturers to produce foods 
which are actually less healthy in order to meet that standard. Another 
food manufacturer expressed support for a sugar restriction based on 
percent calories by weight, although stating that it did not believe a 
total sugar limit is warranted. A trade association and a food 
manufacturer asserted that the sugar criterion of 35 percent by weight 
is in line with the Alliance for a Healthier Generation guidelines, 
which was the basis of many products specially formulated for schools. 
The trade association added that for foods that naturally contain fat 
and sugar, such as dairy products, making lower fat versions of these 
products reduces the percentage of calories from fat, which increases 
the percentage of calories from sugar, so a sugar limit based on weight 
is preferable.
    Two comments, one received from an advocacy organization and 
another from an individual commenter, favored a sugar limit as a 
percent of calories arguing that such an alternative would be more 
protective. The individual asserted that there are many foods that 
would be disallowed were the standard 35 percent sugar by calories, but 
will be allowed because the sugar limit is a percentage of calories by 
weight.
    The Department acknowledges that this standard allows more products 
to qualify to be sold as a competitive food in schools but wishes to 
point out that the portion sizes of these and all foods would be 
limited by the calorie and fat standards. State agencies and school 
districts could choose to implement a sugar standard based on calories, 
provided that it is at least as restrictive as the regulatory standard 
(i.e., no allowable product under the calorie measure could exceed 35 
percent sugar by weight).
    Most commenters supported the exemptions to the total sugar 
requirement as well as the provision allowing an exemption for dried 
fruit with nutritive sweeteners required for processing and/or 
palatability purposes. (At this time, this applies to dried 
cranberries, tart cherries and blueberries only.) A school district 
requested guidance listing specific dried fruits that require nutritive 
sweeteners and urged that this list be maintained as guidance rather 
than as part of the rule so that USDA has flexibility to modify the 
list as warranted without requiring rulemaking. A trade association 
commended USDA for agreeing to issue future guidance on determining 
which dried fruits with added nutritive sweeteners qualify for the 
exemption. The portion sizes of these dried fruits would be limited by 
the calorie standards.
    A few commenters requested that processed fruit and vegetable 
snacks (e.g., fruit strips, fruit leathers or fruit drops) be included 
under the exemption for dried fruit, as many are processed with 
concentrated fruit puree. The Department, however, does not agree that 
processed fruit and vegetable snacks should be included under either 
dried fruit/vegetable exemption. These snack type products are not 
whole dried fruit pieces and the concentrated fruit puree or juice 
concentrate used to make these products is often the primary 
ingredient. These products could still qualify without the exemption as 
a competitive food if they meet all of the standards, including having 
a fruit or vegetable as the first ingredient.

[[Page 50143]]

    The 2015-2020 DGA contain specific recommendations on limiting 
added sugar. This recommendation specifies that no more than 10 percent 
of calories should come from added sugars. The competitive food 
standards address sugar content in the context of the percentage of 
sugar by weight of the product sold. The standards do not include a 
focus on added sugars, or added sugars representing a particular 
percentage value compared to calories. The rationale for limiting sugar 
by weight in the IFR was that a sugar by weight standard was included 
in a number of voluntary standards reviewed during the development of 
the proposed rule, and, generally, this standard was supported by 
commenters as providing the most flexibility for program operators. The 
Department acknowledged in both the proposed rule and IFR that a sugar 
standard based on added sugars is preferable but that such a standard 
would be very difficult for local program operators to implement and 
for State agencies to monitor, because the current Nutrition Facts 
label does not differentiate between naturally occurring and added 
sugars. The Department has consistently indicated that the sugar 
standard included in this rule will be reconsidered if the Nutrition 
Label is updated to reflect added sugars. On May 27, 2016, the FDA 
published a final regulation which included a requirement that added 
sugars in foods be included on the Nutrition Facts Label (81 FR 
34000).The new labeling requirements will be fully implemented by 
summer 2019. Because of the implementation period of the labeling rule, 
FNS is maintaining in this final rule the sugar standard that was put 
forth in the interim final rule. The Department will monitor 
implementation of the new labeling requirements and, in the future, 
anticipates updates to program regulations and guidance regarding the 
sugar standard, particularly considering how to set standards for added 
sugars in competitive foods sold to students on the school campus 
during the school day.
    Therefore, this final rule continues to require in Sec.  
210.11(h)(1), that the total sugar content of a competitive food must 
be not more than 35 percent of weight per item as packaged or served 
and retains the exemption included in Sec.  210.11(h)(2) to the total 
sugar content standards for dried fruit with added nutritive sweeteners 
that are required for processing and/or palatability purposes 
(currently dried cranberries, tart cherries and blueberries). USDA will 
issue any necessary future guidance when a determination is made to 
include any additional dried fruits with added nutritive sweeteners for 
processing and/or palatability to qualify for this exemption.

Exemptions for Some or All of the Nutrition Standards for Menu Items 
Provided as Part of the NSLP/SBP

    The IFR exempts NSLP/SBP entr[eacute]e items from the competitive 
food standards when served as a competitive food on the day of service 
or the day after service in the reimbursable lunch or breakfast 
program. Six commenters expressed support for this approach regarding 
NSLP/SBP menu items sold as competitive foods. Most of these 
commenters, including advocacy organizations and a health care 
association, urged USDA not to grant requests to expand the exemption 
for NSLP/SBP items sold a la carte to, for example, include side 
dishes. Some of these commenters stated that expanding the exemption 
would undermine or weaken the competitive food standards. One advocacy 
organization expressed support that the IFR will require NSLP/SBP side 
dishes sold a la carte to meet the competitive food standards. Another 
advocacy organization stated that the approach taken in the IFR will 
allow for reasonable flexibility for the school food service while also 
addressing concerns regarding the frequency with which particular food 
items are available.
    Fifteen comments recommended that NSLP/SBP entr[eacute]es should 
not receive an exemption from the competitive food standards at any 
time. Some commenters argued that reimbursable meals are designed to 
provide a variety of foods and beverages that, over the course of a 
week, create a balance of all nutrients, while limiting calories, fats 
and sodium, and this balance can be disrupted when individual foods may 
be chosen at the expense of the whole meal. Specifically, a health care 
association commented that because schools are allowed to balance the 
nutrition components of reimbursable meals over a week, foods that may 
exceed the limits for fat, sodium, and calories can be included in a 
reimbursable meal when balanced over the week with healthier sides. For 
this reason, an advocacy organization stated that the exemption for a 
la carte NSLP/SBP entr[eacute]es from the competitive food standards 
will allow children to continue to purchase less healthy entr[eacute]e 
items a la carte instead of nutritious snack foods or more balanced 
reimbursable meals.
    Several advocacy organizations and a professional association 
argued that allowing the sale of any foods that are inconsistent with 
the competitive food standards will undermine the IFR and efforts of 
parents to provide healthy food options to children. This commenter 
asserted that although the exemption for a la carte NLSP/SBP 
entr[eacute]e items only exists on the day and day after it is served 
as part of a reimbursable meal, many schools--particularly high schools 
that offer multiple meals each day--may offer popular items like pizza, 
breaded chicken nuggets, and burgers every day or nearly every day.
    One advocacy organization recognized the importance of consistency 
between foods served in meals and a la carte and argued that there can 
be consistency without exempting a significant number of a la carte 
items from competitive food standards. This commenter stated that if 
individual items meet the competitive food standards, they should have 
no problem fitting into healthful NSLP/SBP menus, which would allow for 
consistency and flexibility, while also safeguarding children's health.
    One hundred commenters suggested that the competitive food 
standards should exempt NSLP/SBP entr[eacute]e items sold a la carte 
regardless of the day on which they are served as part of the 
reimbursable meal. Many of those commenters argued that once an item is 
served that meets reimbursable meal pattern guidelines, it should be 
allowed to be sold as a competitive food without frequency 
restrictions. Some stated that such an exemption would ease menu 
planning and operational issues as well as reduce confusion. These 
comments were primarily made by trade associations and food industry 
commenters as well as some school food service organizations.
    Closely associated with the issue of exempting NSLP and SBP 
entr[eacute]es on the day served and the day after served in the 
reimbursable meal is the lack of an exemption for side dishes served in 
the reimbursable meals. Commenters were also split on whether or not 
such food items should enjoy an exemption from the competitive food 
standards. Eighty commenters urged that NSLP/SBP side items sold a la 
carte should be exempt from competitive food standards. Many of the 
arguments made to support this view were the same as those discussed 
above related to the suggestion that all NSLP/SBP entr[eacute]e items 
should be exempt from all competitive food standards regardless of day 
served. Other commenters indicated that side items should not be exempt 
from the competitive food standards.
    USDA understands the concerns of commenters on both sides of this 
issue.

[[Page 50144]]

Given the circumstances surrounding NSLP and SBP meal planning as well 
as the increase in healthful entr[eacute]es being served, it is 
important to maintain some flexibility when it comes to NSLP and SBP 
entr[eacute]es. However, there is a distinction to be made between the 
meal patterns for reimbursable meals and the competitive food 
standards. The NSLP and SBP offer meals over the course of the school 
week and less nutritious selections may be balanced out with healthier 
items over the course of the week. Competitive food standards are based 
on the nutrients that are provided by individual food items that are 
sold to students on the school campus during the school day. In 
addition, it is important to note that it appears that many schools 
have successfully adapted to this requirement, some by expanding the 
number of entr[eacute]es available to students on a daily basis and 
others by incorporating side items that meet the competitive foods 
requirements into their reimbursable meal menus.
    Therefore, the exemption for NSLP/SBP entr[eacute]e items only is 
retained. Side dishes sold [agrave] la carte would be required to meet 
all applicable competitive food standards. The exemption for the 
entr[eacute]e items is available on the day the entr[eacute]e item is 
served in NSLP/SBP, and the following school day. Entr[eacute]e items 
are provided an exemption, but side dishes are not, in an attempt to 
balance commenter opposition to any exemptions for NSLP/SBP menu items 
and needed menu planning flexibilities. The approach adopted in this 
rule supports the concept of school meals as being healthful, and 
provides flexibility to program operators in planning [agrave] la carte 
sales and handling leftovers. We anticipate that this approach, along 
with the recent changes to school meal standards will continue to 
result in healthier menu items in meals than in the past, including 
entr[eacute]es. Exempt entr[eacute]es that are sold as competitive food 
must be offered in the same or smaller portion sizes as the NSLP and 
SBP.

Guidance on Competitive Foods

    Several commenters requested information on a variety of other 
issues specific to individual foods. Many of these questions have been 
clarified in the extensive guidance issued by the Department in policy 
memoranda and other materials that are available on our Web site at 
http://www.fns.usda.gov/healthierschoolday/tools-schools-focusing-smart-snacks. We encourage interested parties to review these materials 
since they are updated frequently. In addition, the Alliance for a 
Healthier Generation, in partnership with FNS, has developed extensive 
resources including guidance materials and the Competitive Foods 
Calculator and Navigator, which provide a way to evaluate individual 
foods and beverages as well as a listing of Smart Snacks allowable 
foods and beverages, respectively. These items are available at 
www.healthiergeneration.org.
Accompaniments
    The IFR at Sec.  210.11(n) limited the use of accompaniments to 
competitive food, such as cream cheese, jelly, butter, salad dressing, 
etc., by requiring that all accompaniments be included in the nutrient 
profile as part of the food item served. Two commenters supported 
requiring accompaniments to be included in the nutrient profile as part 
of the food item served. A State department of education commented that 
the requirement to include the nutrient content of accompaniments in 
the nutrient profile of the product is appropriate and reasonable 
because condiments can contribute significant calories, sugar, fat and/
or sodium. A school district expressed support for the IFR requirements 
relating to accompaniments not requiring pre-portioning, but requiring 
that they be included in the nutrient profile of competitive foods. 
Forty-five commenters opposed the requirement by suggesting that a 
weekly calorie range should be applied or that there should be no 
consideration of accompaniments.
    The Department maintains that it is important to account for the 
dietary contribution of accompaniments in determining whether a food 
item may be served as a competitive food. Accompaniments can provide 
substantial sodium, sugar and/or calories to food items sold. 
Therefore, the requirement that accompaniments be included in the 
nutrient profile of foods is retained. As provided in the IFR, schools 
may determine the average serving size of the accompaniments at the 
site of service (e.g., school district). This is similar to the 
approach schools have used in conducting nutrient analysis of school 
meals in the past. Schools have successfully implemented this 
requirement and have not had difficulty in determining the average 
serving size of accompaniments that are used in schools, but the 
Department will provide further guidance if necessary.

Nutrition Standards for Beverages

    The IFR at Sec.  210.11(m) established standards for allowable 
beverage types for elementary, middle and high school students. At all 
grade levels, water, low fat and nonfat milk, and 100 percent juice and 
100 percent juice diluted with water with no added sweeteners are 
allowed in specified maximum container sizes, which varied by grade 
level. The rule also allows additional beverages for high school 
students in recognition of the wide range of beverages available to 
high school students in the broader marketplace and the increased 
independence such students have, relative to younger students, in 
making consumer choices.
General Comments on Beverage Requirements
    Ten commenters expressed general support for the beverage standards 
included in the IFR. Sixty-five commenters generally opposed the ICR 
beverage standards and cited a variety of reasons, from wanting to 
allow all grade levels to have no-calorie/low calorie beverages to 
opposing allowing high school students to have no-calorie/low calorie 
beverages available to them in school. A few commenters asserted that 
milk is produced in 8 ounce and 16 ounce containers and that requiring 
a limit of 12 ounce size milk for middle school and high school 
students may be problematic. While some commenters recommended larger 
portion sizes for all beverages, others recommended smaller portion 
sizes, particularly related to juice products. Still other commenters 
wished to restrict food colorings and other ingredients in 100 percent 
juice. Several commenters indicated that no-calorie/low calorie 
beverages should not be allowed in high school due to the inclusion of 
non-nutritive sweeteners in such beverages. While about 40 commenters 
supported the removal of the time and place restriction on the sale of 
other beverages in high school lunchrooms during the meal service, 
several commenters objected to the elimination of the restriction and a 
few indicated that such beverages should not be sold in any location at 
any time in high schools.
    A few commenters suggested that USDA use only two grade groups for 
the beverage standards--elementary and secondary--to ease 
implementation. Some commenters stated that it would be difficult and/
or costly to administer the beverage requirements in combined grade 
campuses, such as 7-12 or K-12. In response, USDA appreciates that 
implementation could be more difficult in schools with overlapping 
grade groups, but considers it important to maintain in the final rule 
the three grade groupings included in the IFR. These groupings reflect 
the IOM recommendations and appropriately provide additional choices to 
high school students, based on their increased level of independence. 
USDA

[[Page 50145]]

has provided guidance on this issue and will continue to provide 
technical assistance and facilitate the sharing of best practices as 
appropriate.
Other Beverages for High School
    Most of the comments received on the IFR beverage requirements 
dealt with the standards for other beverages allowed in high school. A 
number of commenters wanted no-calorie and low-calorie beverages to be 
available in elementary and middle schools as well as high schools, 
while others opposed these beverages at any grade level. Several 
commenters stated that although schools may impose more stringent 
standards, schools may choose to sell diet beverages because the sale 
of such drinks are profit making. Other commenters indicated that if 
schools are not allowed to sell no-calorie/low calorie beverages in 
high school students will purchase them elsewhere and bring them to 
school.
    USDA appreciates the input provided by commenters. The Department 
maintains that, given the beverages available in the broader 
marketplace and the independence that high school students enjoy, low 
calorie/no-calorie beverages may be sold in high schools. However, we 
do not agree that such beverages should be available to elementary and 
middle school students in school. No changes are made to this standard.
Caffeine
    The IFR at Sec.  210.11(l) required that foods and beverages 
available in elementary and middle schools to be caffeine free, with 
the exception of trace amounts of naturally occurring caffeine 
substances. This is consistent with IOM recommendations. The IFR did, 
however, permit caffeine for high school students.
    Four commenters agreed with the IFR caffeine provisions. A food 
industry commenter expressed support for limited beverage choices for 
young children but allowing a broader range of products, including 
those containing typical amounts of caffeine, in high schools, given 
the increased independence of high school students. A trade association 
agreed that high school students should have access to beverages that 
contain caffeine and asserted that in 1987 FDA found no evidence to 
show that the use of caffeine in carbonated beverages would render such 
beverages injurious to health. This commenter asserted that its members 
provide a wide array of low- and no-calorie beverages to high schools, 
some of which contain modest amounts of caffeine, but member companies 
have voluntarily instituted policies against the sale of caffeinated 
beverages marketed as energy drinks to schools. Two school districts 
supported caffeinated beverages for high school students.
    Forty-five commenters opposed the IFR caffeine provisions, 
generally because it will allow foods and beverages in high school to 
contain caffeine. Those commenters were primarily concerned about the 
use of caffeinated low-calorie energy drinks that contain unregulated 
amounts of caffeine and other additives.
    An advocacy organization cited warnings from the American Academy 
of Pediatrics and added that aggressive marketing of caffeinated 
products is designed to appeal to youth and there is a lack of 
information on caffeine content on food labels. Several commenters 
opposed allowing the sale of caffeinated drinks in high schools, 
particularly drinks with high levels of caffeine and no nutritive 
value.
    USDA is concerned, as are some commenters, that some foods and 
beverages with very high levels of caffeine may not be appropriate to 
be sold in schools, even at the high school level. The FDA has not set 
a daily caffeine limit for children, but the American Academy of 
Pediatrics discourages the consumption of caffeine and other stimulants 
by children and adolescents. However, the health effects of caffeine 
are currently being considered by the FDA and the IOM. FDA did announce 
that it will investigate the safety of caffeine in food products, 
particularly its effects on children and adolescents. The FDA 
announcement cited a proliferation of products with caffeine that are 
being aggressively marketed to children, including ``energy drinks.'' 
FDA, working with the IOM, convened a public workshop on August 5-6, 
2013, to review existing science on safe levels of caffeine consumption 
and the potential consequences to children of caffeinated products in 
the food supply. The workshop did not result in any recommendations but 
a report was produced and may be found at http://iom.nationalacademies.org/Reports/2014/Caffeine-in-Food-and-Dietary-Supplements-Examining-Safety.aspx). USDA will continue to monitor 
efforts by FDA to identify standards regarding the consumption of 
caffeine by high school aged children.
    Therefore, given the lack of authoritative recommendations at this 
time, this rule will not prohibit caffeine for high school students. 
However, USDA acknowledges commenters' concerns and encourages schools 
to be mindful of the level of caffeine in food and beverages when 
selecting products for sale in schools, especially when considering the 
sale of high caffeine products such as energy drinks. It is also 
important to note that local jurisdictions have the discretion to 
further restrict the availability of caffeinated beverages should they 
wish to do so.
    The caffeine provisions as included in the IFR at Sec.  210.11(k) 
are not changed.
Non-Nutritive Sweeteners
    The IFR did not explicitly address the issue of non-nutritive 
sweeteners; however, the rule allowed calorie-free and low-calorie 
beverages in high schools, which would implicitly allow beverages 
including non-nutritive sweeteners.
    Ten commenters addressed the use of non-nutritive sweeteners in 
food products. Some commenters opposed allowing artificially sweetened 
beverages. For example, some commenters opposed the sale of diet sodas, 
whereas others stated that there is little evidence regarding the 
advisability of intake of sugar-sweetened beverages versus intake of 
non-nutritive sweeteners in beverages. In contrast, some commenters 
supported the use of non-nutritive sweeteners. USDA appreciates 
commenter input but is not explicitly addressing the use of non-
nutritive sweeteners in the regulatory text of this final rule. Local 
program operators can decide whether to offer food and/or beverage 
items for sale that include non-nutritive sweeteners.

Other Requirements

Fundraisers
    The IFR at Sec.  210.11(b)(4) requires that food and beverage items 
sold during the school day meet the nutrition standards for competitive 
food but allows for special exemptions for the purpose of conducting 
infrequent school-sponsored fundraisers, as specified in the HHFKA. The 
provision included in the IFR was that exempt fundraiser frequency 
would be determined by the State agency during such periods that 
schools are in session. The IFR also required that no specially 
exempted fundraiser foods or beverages may be sold in competition with 
school meals in the food service area during the meal service.
    Ten commenters indicated that USDA should establish the number and 
type of fundraisers that are exempt from the competitive food standards 
to ensure consistency among States. Other commenters recommended that 
the Department set parameters for the minimum and maximum numbers of

[[Page 50146]]

exempt fundraisers based on the size of schools. Thirty comments 
suggested that all food fundraisers taking place in schools be required 
to adhere to the competitive food standards at all times. Some 
commenters indicated that allowing exempt fundraisers will create 
confusion among parents, students and staff. A number of commenters 
noted that the approval of exempt fundraisers should be governed by the 
school wellness policies. Thirty commenters indicated that time and 
place restrictions on exempt fundraisers should apply not only to the 
food service area during the meal service but to all locations in the 
school during the meal service and some suggested placing timeframes on 
when such fundraisers may be held (for example: one hour after the 
school lunch service is completed).
    The final rule retains the requirements regarding the 
responsibility of the State agency to determine the frequency of exempt 
fundraisers in schools. In addition, the rule continues to stipulate 
that there are no limits on the sale of food items that meet the 
competitive food requirements (as well as the sale of non-food items) 
at school fundraisers. In addition, the Department wishes to remind the 
public that the fundraiser standards do not apply to food sold during 
non-school hours, weekends and off-campus fundraising events such as 
concessions during after-school sporting events.
    USDA is confident that State agencies possess the necessary 
knowledge, understanding and resources to make decisions about what an 
appropriate number of exempt fundraisers in schools should be and that 
the most appropriate approach to specifying the standards for exempt 
fundraisers is to allow State agencies to set the allowed frequency of 
such fundraisers. If a State agency does not specify the exemption 
frequency, no fundraiser exemptions may be granted. It is not USDA's 
intent that the competitive food standards apply to fundraisers in 
which the food sold is clearly not for consumption on the school campus 
during the school day. It is also important to note that LEAs may 
implement more restrictive competitive food standards, including those 
related to the frequency with which exempt fundraisers may be held in 
their schools, and may impose further restrictions on the areas of the 
schools and the times during which exempt fundraisers may occur in the 
schools during the school day.
    In addition, USDA has provided guidance on fundraisers in response 
to a variety of specific questions received during implementation and 
this guidance may be found in Policy Memo SP 23-2014(V.3) available on 
our Web site at http://www.fns.usda.gov/nslp/policy.
    In summary, the exempt fundraiser provisions contained in Sec.  
210.11(b)(4) of the IFR are unchanged and the final rule continues to 
specify that competitive food and beverage items sold during the school 
day must meet the nutrition standards for competitive food, and that a 
special exemption is allowed for the sale of food and/or beverages that 
do not meet the competitive food standards for the purpose of 
conducting an infrequent school-sponsored fundraiser. Such specially 
exempted fundraisers must not take place more than the frequency 
specified by the State agency during such periods that schools are in 
session. Finally, no specially exempted fundraiser foods or beverages 
may be sold in competition with school meals in the food service area 
during the meal service.
Availability of Water During the Meal Service
    The IFR codified a provision of the HHFKA that requires schools 
participating in the NSLP to make free, potable water available to 
children in the place lunches are served during the meal service. Just 
over 40 comments addressed the part of the IFR that requires schools 
participating in the NSLP to make free, potable water available to 
children in the place lunches are served during the meal service and in 
the cafeteria during breakfast meal service.
    Many of these commenters, including advocacy organizations, 
professional associations and individual commenters, expressed support 
for the potable water requirement. Two advocacy organizations commented 
that water has zero calories and is a healthy alternative to sugary 
drinks. These commenters stated that making the water free and easily 
accessible may help combat obesity and promote good health. Similarly, 
one individual commenter stated that the free, potable water 
requirement will help reduce the purchase of other drinks that are high 
in added sugars. A few individual commenters remarked that low-income 
students do not have the luxury of bringing or buying water bottles or 
even have access to clean running water outside of school, and free 
potable water is imperative to these students. Two individual 
commenters recommended that free potable water be available during 
breakfast, lunch, and all break and recess times regardless of where 
food is being served.
    Section 210.10(a)(1) of the final rule continues to require that 
schools make potable water available and accessible without restriction 
to children at no charge in the place where lunches are served during 
the meal service. In addition, Sec.  220.8(a)(1) requires that when 
breakfast is served in the cafeteria, schools must make potable water 
available and accessible without restriction to children at no charge. 
The Department continues to encourage schools to make potable water 
available without restriction at all meal and snack services when 
possible.
Recordkeeping
    The IFR at Sec.  210.11(b)(2), outlined the recordkeeping 
requirements associated with competitive foods. Local educational 
agencies and school food authorities would be required to maintain 
records documenting compliance with the requirements. Local educational 
agencies would be responsible for maintaining records documenting 
compliance with the competitive food nutrition standards for food sold 
in areas that are outside of the control of the school food service 
operation. Local educational agencies also would be responsible for 
ensuring any organization designated as responsible for food service at 
the various venues in the school (other than the school food service) 
maintains records documenting compliance with the competitive food 
nutrition standards. The school food authority would be responsible for 
maintaining records documenting compliance with the competitive food 
nutrition standards for foods sold in meal service areas during meal 
service periods. Required records would include, at a minimum, 
receipts, nutrition labels and/or product specifications for the items 
available for sale.
    About 120 commenters expressed concerns about recordkeeping, 
monitoring and compliance. Twenty commenters specifically addressed 
recordkeeping. Some of those commenters suggested that recordkeeping is 
costly, unrealistic and/or not necessary. Yet others recommended 
minimizing the recordkeeping on non-school groups. A number of 
commenters representing school food service were concerned that the 
local educational agency would require school food service to be 
responsible for recordkeeping on behalf of school food service as well 
as other entities/organizations within the local educational agency. 
Additionally, they were concerned that school food service could not 
affect the requirements throughout the local educational agency

[[Page 50147]]

since they have no authority over other school organizations.
    The Department appreciates that this regulation may have created 
some new challenges initially, as schools implemented the IFR and took 
steps to improve the school nutrition environment. Such challenges may 
be ongoing for some schools. However, maintaining a record that 
substantiates that the food items available for sale in the schools 
meet the standards is essential to the integrity of the competitive 
food standards. To determine whether a food item is an allowable 
competitive food, the local educational agency designee(s) must assess 
the nutritional profile of the food item. This may be accomplished by 
evaluating the product Nutrition Facts Label and/or using the Alliance 
for a Healthier Generation Calculator to do so and retaining a copy of 
that evaluation in the files, retaining receipts for the food items 
ordered or purchased for secondary sale at the various venues at the 
schools, etc. Absent an evaluation of the nutritional profile of the 
competitive foods available for sale at the schools, the local 
educational agency has no way of knowing whether a food item meets the 
nutrition standards set forth in this rule. The recordkeeping 
requirement simply requires the local educational agency to retain the 
reviewed documentation (e.g., the nutrition labels, receipts, and/or 
product specifications) in their files.
    Commenters also expressed concern about the designation of 
responsibility for this activity. As stated in the IFR, the Department 
does not expect the responsibility to rest solely with the nonprofit 
school food service. School food service personnel are expected to have 
a clear understanding of the nutrition profile of foods purchased using 
nonprofit school food service funds for reimbursable meals, a la carte 
offerings, etc. Their authority and responsibilities are typically 
limited to the nonprofit school food service. Local educational 
agencies are responsible for ensuring that all entities involved in 
food sales within a school understand that the local educational agency 
as a whole must comply with these requirements.
    As stated in the IFR, the Department continues to recommend that 
cooperative duties associated with the sale of competitive foods be 
coordinated and facilitated by the local school wellness policy 
designee(s). Section 204 of the HHFKA amended the NSLA by adding 
section 9A (42 U.S.C. 1758b) which requires each local educational 
agency to: (a) Establish a local school wellness policy which includes 
nutrition standards for all foods available on each school campus, and 
(b) designate one or more local educational agency officials or school 
officials, to ensure that each school complies with the local school 
wellness policy. State agencies were advised of the section 204 
requirements in FNS Memorandum, Child Nutrition Reauthorization 2010: 
Local School Wellness Policies, issued July 8, 2011 (SP 42-2011). In 
addition, the Department published a proposed rule titled Local School 
Wellness Policy Implementation Under the Healthy, Hunger Free Kids Act 
of 2010 on February 26, 2014 at 79 FR 10693. Comments were submitted by 
the public and those comments are being analyzed for the development of 
an upcoming final rule.
    The Department believes, and the experience of many operators 
confirms, that if the LEA local school wellness designee(s), school 
food service, and other entities and groups involved with the sale of 
food on the school campus during the school day work together to share 
information on allowable foods and coordinate recordkeeping 
responsibilities, the result is the successful implementation and 
maintenance of a healthy school environment. As always, State agencies 
and the Department will provide technical assistance to facilitate 
ongoing implementation of the competitive food nutrition standards.
    Therefore, there are no changes to the recordkeeping requirements 
and Sec.  210.11(b)(2) of the IFR is affirmed.
Compliance and Monitoring
    Section 210.18(h)(6) requires State agencies to ensure that local 
educational agencies comply with the nutrition standards for 
competitive food and retain documentation demonstrating compliance with 
the competitive food service and standards.
    As indicated above, about 120 commenters submitted comments related 
to recordkeeping, monitoring and compliance. A number of commenters, 
largely school food service personnel, expressed concerns about how 
monitoring would occur for foods sold by groups outside of the school 
food service. Some commenters believed technical assistance would be 
insufficient and raised questions about means to effect compliance. 
Other commenters expressed concerns about the need to train and educate 
non-school food service personnel as to how to comply with the 
regulations. Several State agencies, school districts and individuals 
requested that the SFA not be held accountable for compliance issues 
outside of the control of the SFA.
    The Department agrees that training will be needed to ensure 
compliance with the nutrition standards. As mentioned under the 
discussion of Recordkeeping above, the Department envisions local 
educational agency designees, potentially the local school wellness 
coordinator(s), taking the lead in developing performance or compliance 
standards and training for all local educational personnel tasked with 
selling competitive food on the school campus during the school day. 
The Department and State agencies will also offer training to ensure 
local educational agencies are able to comply in the most efficient 
manner possible.
    The Department published a proposed rule titled Administrative 
Reviews in the School Nutrition Programs on May 11, 2015 (80 FR 26846) 
addressing an updated administrative review process that includes these 
new monitoring responsibilities. This rule, together with 
administrative review guidance, provides information regarding the 
proposed conduct and scope of reviews, and the monitoring and records 
review that will be conducted with regard to competitive foods. 
Currently, USDA is reviewing the comments received from the public on 
the proposed rule in preparation for the development of an implementing 
rule.
    The Department would like to assure commenters that we see 
technical assistance and training as the first approach to non-
compliance; however, we recognize that egregious, repeated cases of 
non-compliance may require a more aggressive approach. In this regard, 
section 303 of the HHFKA amended section 22 of the NSLA (42 U.S.C. 
1769c) to provide the Department with the authority to impose fines 
against any school or school food authority repeatedly failing to 
comply with program regulations. This authority will be addressed in a 
proposed rule dealing with a number of integrity issues related to 
local educational agencies administering the Child Nutrition Programs 
which is currently under development. Interested parties will have an 
opportunity to comment on the proposed integrity rule.
Special Situations/Applicability
    This rule continues to require that all local educational agencies 
and schools participating in the NSLP and SBP meet the nutrition 
standards for competitive foods sold to students on the school campus 
during the school day. Several questions have been received regarding 
the applicability of these standards to after school programs operated 
in

[[Page 50148]]

schools that participate in NSLP/Child and Adult Care Food Program 
(CACFP). The Department wishes to clarify that such programs are 
required to comply with their specified meal patterns. Only if food is 
sold to their program participants outside of their meal pattern would 
the competitive foods standards be applicable for 30 minutes after the 
end of the official school day, consistent with the definition of 
School day specified in Sec.  210.11(a)(5).
    Forty comments addressed impacts of the IFR on culinary training 
programs. These commenters urged for complete exemption from the 
competitive food standards for foods prepared and sold as part of 
culinary education programs. In contrast, a school district, school 
food service staff, and other individual commenters urged USDA to apply 
the competitive food standards to foods sold to students during the 
school day by culinary arts programs.
    The Department addressed the applicability of the competitive foods 
regulation on culinary arts programs in Policy Memo SP 40-2014, 
published on April 22, 2014. That memo recognized that culinary 
education programs providing students with technical career training 
operate in some schools nationwide. Some of those culinary education 
programs operate food service outlets that sell foods to students, 
faculty, or others in the community, with a minority of programs doing 
so during the school day. The memo also clarified that the competitive 
foods nutrition standards have no impact on the culinary education 
programs' curriculum in schools, nor do they have any impact on foods 
sold to adults at any time or to students outside of the school day. 
However, to the extent that such programs are selling food to students 
on campus during the school day, the statutory applicability of the 
Smart Snacks nutrition standards to all foods sold outside of the 
School meals programs is clear. Section 12(l)(4)(J) of the NSLA (42 
U.S.C. 1760(l)(4)(J), prohibits the Secretary from granting a waiver 
that relates to the requirements of the NSLA, the CNA, or any 
regulation issued under either statute with regard to the sale of foods 
sold outside of the school meal programs. The nutrition standards 
included in the final rule continue to apply to all foods sold to 
students on the school campus during the school day, including food 
prepared and/or sold by culinary education programs.

Related Information

Implementation

    The competitive food provisions contained in the IFR were 
implemented by State agencies and local educational agencies on July 1, 
2014. Changes made in this final rule may be implemented as specified 
in the DATES section of this preamble. While the total fat standard 
remains in place, additional comments on the interim final total fat 
standard are being accepted and must be received as specified in the 
DATES section of this preamble. The saturated fat and trans fat 
standards are finalized in this rule. This final rule removes Sec.  
210.11a and its corresponding Appendix B, which references the sale of 
foods of minimal nutritional value, since those standards were 
eliminated as of July 1, 2014, the date that competitive food standards 
were implemented in their place. Similar changes are made to the 
breakfast program regulations at 7 CFR part 220.

Procedural Matters

Executive Order 12866 and Executive Order 13563

    Executive Orders 12866 and 13563 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility.
    This Final rule has been designated an ``economically significant 
regulatory action'' under section 3(f) of Executive Order 12866. 
Accordingly, the rule has been reviewed by the Office of Management and 
Budget.

Regulatory Flexibility Analysis

    This rule has been reviewed with regard to the requirements of the 
Regulatory Flexibility Act of 1980 (5 U.S.C.601-612). The rule directly 
regulates the 54 State education agencies and 3 State Departments of 
Agriculture that operate the NSLP pursuant to agreements with USDA's 
Food and Nutrition Service. While State agencies are not considered 
small entities as State populations exceed the 50,000 threshold for a 
small government jurisdiction, many of the service-providing 
institutions that work with them to implement the program do meet 
definitions of small entities.
    The requirements established by this final rule will apply to 
school districts, which meet the definitions of ``small governmental 
jurisdiction'' and other establishments that meet the definition of 
``small entity'' in the Regulatory Flexibility Act. The Regulatory 
Flexibility Act analysis is published as part of the docket (FNS-2011-
0019) on www.regulations.gov.

Regulatory Impact Analysis Summary

    As required for all rules that have been designated as significant 
by the Office of Management and Budget, a Regulatory Impact Analysis 
(RIA) was developed for this final rule A summary is presented below. 
The full RIA is published as part of the docket (FNS-2011-0019) on 
www.regulations.gov.

Need for Action

    The final rule responds to two provisions of the Healthy, Hunger-
Free Kids Act of 2010. Section 208 of HHFKA amended Section 10 of the 
Child Nutrition Act of 1966 to require the Secretary to establish 
science-based nutrition standards for all foods sold in schools during 
the school day. In addition, the amendments made by section 203 of the 
HHFKA amended section 9(a) of the NSLA (42 U.S.C. 1758(a)) to require 
that schools participating in the NSLP make potable water available to 
children at no charge in the place where meals are served during the 
meal service. This is a nondiscretionary requirement of the HHFKA that 
became effective October 1, 2010, and was required to be implemented by 
August 27, 2013.

Response to Comments

    The full Regulatory Impact Analysis includes a brief discussion of 
comments submitted by school officials, public health organizations, 
industry representatives, parents, students, and other interested 
parties on the costs and benefits of the final rule submitted. The 
analysis also contains a discussion of how USDA modified the final rule 
in response, and the effect of those modifications on the costs and 
benefits of the rule.

Benefits

    The primary purpose of the rule is to ensure that nutrition 
standards for competitive foods are consistent with those used for the 
NSLP and SBP, holding competitive foods to standards similar to the 
rest of foods available to students during the school day. These 
standards, combined with recent improvements in school meals, will help 
promote diets that contribute to students' long-term health and well-

[[Page 50149]]

being. In addition, these standards continue to support a healthy 
school environment and the efforts of parents to promote healthy 
choices for children at home and at school.
    Obesity has become a major public health concern in the U.S., with 
one-third of U.S. children and adolescents now considered overweight or 
obese (Beydoun and Wang 2011\2\), with current childhood obesity rates 
four times higher in children ages six to 11 than they were in the 
early 1960s (19 vs. 4 percent), and three times higher (17 vs. 5 
percent) for adolescents ages 12 to 19.\3\ Research focused 
specifically on the effects of obesity in children indicates that obese 
children feel they are less capable, both socially and athletically, 
less attractive, and less worthwhile than their non-obese 
counterparts.\4\ Further, there are direct economic costs due to 
childhood obesity: $237.6 million (in 2005 dollars) in inpatient costs 
\5\ and annual prescription drug, emergency room, and outpatient costs 
of $14.1 billion.\6\
---------------------------------------------------------------------------

    \2\ Beydoun, M.A. and Y. Wang. 2011. Socio-demographic 
disparities in distribution shifts over time in various adiposity 
measures among American children and adolescents: What changes in 
prevalence rates could not reveal. International Journal of 
Pediatric Obesity, 6:21-35. As cited in Food Labeling: Calorie 
Labeling of Articles of Food in Vending Machines NPRM. 2011. 
Preliminary Regulatory Impact Analysis, Docket No. FDA-2011-F-0171.
    \3\ Ogden et al. Prevalence of Obesity Among Children and 
Adolescents: United States, Trends 1963-1965 Through 2007-2008. CDC-
NHCS, NCHS Health E-Stat, June 2010. On the web at http://www.cdc.gov/nchs/data/hestat/obesity_child_07_08/obesity_child_07_08.htm.
    \4\ Riazi, A., S. Shakoor, I. Dundas, C. Eiser, and S.A. 
McKenzie. 2010. Health-related quality of life in a clinical sample 
of obese children and adolescents. Health and Quality of Life 
Outcomes, 8:134-139.Samuels & Associates. 2006. Competitive Foods. 
Policy Brief prepared by Samuels & Associates for The California 
Endowment and Robert Wood Johnson Foundation. Available at: http://www.healthyeatingactivecommunities.org/downloads/
    \5\ Trasande, L., Y. Liu, G. Fryer, and M. Weitzman. 2009. 
Trends: Effects of Childhood Obesity on Hospital Care and Costs, 
1999-2005. Health Affairs, 28:w751-w760.
    \6\ Cawley, J. 2010. The Economics of Childhood Obesity. Health 
Affairs, 29:364-371. As cited in Food Labeling: Calorie Labeling of 
Articles of Food in Vending Machines NPRM. 2011. Preliminary 
Regulatory Impact Analysis, Docket No. FDA-2011-F-0171.
---------------------------------------------------------------------------

    Because the factors that contribute both to overall food 
consumption and to obesity are so complex, it is not possible to define 
a level of disease or cost reduction expected to result from 
implementation of the rule. There is some evidence, however, that 
competitive food standards can improve children's dietary quality.
     Taber, Chriqui, and Chaloupka (2012 \7\) concluded that 
California high school students consumed fewer calories, less fat, and 
less sugar at school than students in other States. Their analysis 
``suggested that California students did not compensate for consuming 
less within school by consuming more elsewhere'' (p. 455).
---------------------------------------------------------------------------

    \7\ Taber, D.R., J.F. Chriqui, and F. J. Chaloupka. 2012. 
Differences in Nutrient Intake Associated With State Laws Regarding 
Fat, Sugar, and Caloric Content of Competitive Foods. Archives of 
Pediatric & Adolescent Medicine, 166:452-458.
---------------------------------------------------------------------------

     In an assessment of the reach and effectiveness of 
childhood obesity strategies, Gortmaker et al. \8\ project that 
implementing nutrition standards for all foods and beverages sold in 
schools outside of reimbursable school meals will prevent an estimated 
345,000 cases of childhood obesity in 2025 (p. 1937).
---------------------------------------------------------------------------

    \8\ Gortmaker SL, Claire Wang Y, Long MW, Giles CM, Ward ZJ, 
Barrett JL, Kenney EL, Sonneville KR, Afzal AS, Resch SC, Cradock 
AL., Health Affairs, 34, no. 11 (2015).
---------------------------------------------------------------------------

     Schwartz, Novak, and Fiore, (2009 \9\) determined that 
healthier competitive food standards decreased student consumption of 
low nutrition items with no compensating increase at home.
---------------------------------------------------------------------------

    \9\ Schwartz, M.B., S.A. Novak, and S.S. Fiore. 2009. The Impact 
of Removing Snacks of Low Nutritional Value from Middle Schools. 
Health Education & Behavior, 36:999-1011.
---------------------------------------------------------------------------

     Researchers at Healthy Eating Research and Bridging the 
Gap found that ``[t]he best evidence available indicates that policies 
on snack foods and beverages sold in school impact children's diets and 
their risk for obesity. Strong policies that prohibit or restrict the 
sale of unhealthy competitive foods and drinks in schools are 
associated with lower proportions of overweight or obese students, or 
lower rates of increase in student BMI'' (Healthy Eating Research and 
Bridging the Gap, 2012, p. 3 \10\).
---------------------------------------------------------------------------

    \10\ Healthy Eating Research and Bridging the Gap. 2012. 
Influence of Competitive Food and Beverage Policies on Children's 
Diets and Childhood Obesity. Available at http://www.healthyeatingresearch.org/images/stories/her_research_briefs/Competitive_Foods_Issue_Brief_HER_BTG_7-2012.pdf
---------------------------------------------------------------------------

    A comprehensive assessment of the evidence on the importance of 
competitive food standards conducted by the Pew Health Group concluded 
that a national competitive foods policy would increase student 
exposure to healthier foods, decrease exposure to less healthy foods, 
and would also likely improve the mix of foods that students purchase 
and consume at school. Researchers concluded that these kinds of 
changes in food exposure and consumption at school are important 
influences on the overall quality of children's diets.
    Although nutrition standards for foods sold at school alone may not 
be a determining factor in children's overall diets, they are critical 
to providing children with healthy food options throughout the entire 
school day. Thus, these standards will help to ensure that the school 
nutrition environment does all that it can to promote healthy choices, 
and help to prevent diet-related health problems. Ancillary benefits 
could derive from the fact that improving the nutritional value of 
competitive foods may reinforce school-based nutrition education and 
promotion efforts and contribute significantly to the overall 
effectiveness of the school nutrition environment in promoting 
healthful food and physical activity choices.\11\
---------------------------------------------------------------------------

    \11\ Pew Health Group and Robert Wood Johnson Foundation. 2012. 
Heath Impact Assessment: National Nutrition Standards for Snack and 
a la Carte Foods and Beverages Sold in Schools. Available online: 
http://www.pewhealth.org/uploadedFiles/PHG/Content_Level_Pages/Reports/KS%20HIA_FULL%20Report%20062212_WEB%20FINAL-v2.pdf.
---------------------------------------------------------------------------

Costs

    While there have been numerous success stories, best practices, and 
innovative practices, it is too early to definitively ascertain the 
overall impact to school revenue. The changes and technical 
clarifications in the final rule do not change the methodology of the 
cost benefit analysis from the methodology used in the interim final 
regulatory impact analysis, however the estimates are updated using the 
most recent data available to assess the impacts to revenue and to 
account for the potential variation in implementation and 
sustainability experiences across SFAs and schools.
    The limited information available indicates that many schools have 
successfully introduced competitive food reforms with little or no loss 
of revenue and in a few cases, revenues from competitive foods 
increased after introducing healthier foods. In some of the schools 
that showed declines in competitive food revenues, losses from reduced 
sales were fully offset by increases in reimbursable meal revenue. In 
other schools, students responded favorably to the healthier options 
and competitive food revenue declined little or not at all.
    But not all schools that adopted or piloted competitive food 
standards fared as well. Some of the same studies and reports that 
highlight school success stories note that other schools sustained some 
loss after implementing similar standards. While in some cases these 
were short-term losses, even in the long-

[[Page 50150]]

term the competitive food revenue lost by those schools was not offset 
(at least not fully) by revenue gains from the reimbursable meal 
programs.
    Our analysis examines the possible effects of the rule on school 
revenues from competitive foods and the administrative costs of 
complying with the rule's competitive foods provisions. The analysis 
uses available data to construct model-based scenarios that different 
schools may experience in implementing the rule. While these vary in 
their impact on overall school food revenue, each scenario's estimated 
impact is relatively small (+0.5 percent to -1.3 percent). That said, 
the data behind the scenarios are insufficient to assess the frequency 
or probability of schools experiencing the impacts shown in each.

Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public 
Law 104-4, establishes requirements for Federal agencies to assess the 
effects of their regulatory actions on State, local, and Tribal 
governments and the private sector. Under section 202 of the UMRA, the 
Department generally must prepare a written statement, including a 
cost/benefit analysis, for proposed and final rules with Federal 
mandates that may result in expenditures by State, local, or Tribal 
governments, in the aggregate, or by the private sector, of $100 
million or more in any one year. When such a statement is needed for a 
rule, section 205 of the UMRA generally requires the Department to 
identify and consider a reasonable number of regulatory alternatives 
and adopt the least costly, more cost-effective or least burdensome 
alternative that achieves the objectives of the rule. Because data is 
not available to meaningfully estimate the quantitative impacts of this 
rule on school food authority revenues, we are not certain that this 
rule is subject to the requirements of sections 202 and 205 of the 
UMRA. That said, it is possible that the rule's requirements could 
impose costs on State, local, or Tribal governments or to the private 
sector of $100 million or more in any one year. FNS therefore conducted 
a regulatory impact analysis that includes a cost/benefit analysis 
substantially meeting the requirements of sections 202 and 205 of the 
UMRA.

Executive Order 12372

    The NSLP is listed in the Catalog of Federal Domestic Assistance 
under No. 10.555. The SBP is listed in the Catalog of Federal Domestic 
Assistance under No. 10.553. For the reasons set forth in the final 
rule in 7 CFR part 3015, subpart V and related notice (48 FR 29115, 
June 24, 1983), these programs are included in the scope of Executive 
Order 12372, which requires intergovernmental consultation with State 
and local officials.

Executive Order 13132

    Executive Order 13132 requires Federal agencies to consider the 
impact of their regulatory actions on State and local governments. 
Where such actions have federalism implications, agencies are directed 
to provide a statement for inclusion in the preamble to the regulations 
describing the agency's considerations in terms of the three categories 
called for under section (6)(b)(2)(B) of Executive Order 13132. USDA 
has considered the impact of this rule on State and local governments 
and has determined that this rule does not have federalism 
implications. This rule does not impose substantial or direct 
compliance costs on State and local governments. Therefore, under 
Section 6(b) of the Executive Order, a federalism summary impact 
statement is not required.

Executive Order 12988

    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. This rule is intended to have preemptive effect with 
respect to any State or local laws, regulations or policies which 
conflict with its provisions or which would otherwise impede its full 
implementation. This rule is not intended to have retroactive effect 
unless specified in the DATES section of the final rule. Prior to any 
judicial challenge to the provisions of this rule or the application of 
its provisions, all applicable administrative procedures must be 
exhausted.

Civil Rights Impact Analysis

    FNS has reviewed this rule in accordance with Departmental 
Regulations 4300-4, ``Civil Rights Impact Analysis,'' and 1512-1, 
``Regulatory Decision Making Requirements.'' After a careful review of 
the rule's intent and provisions, FNS has determined that this rule is 
not intended to limit or reduce in any way the ability of protected 
classes of individuals to receive benefits on the basis of their race, 
color, national origin, sex, age or disability nor is it intended to 
have a differential impact on minority owned or operated business 
establishments and woman-owned or operated business establishments that 
participate in the Child Nutrition Programs.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
3501 et seq.), this final rule does not contain substantive changes to 
information collection requirements that require additional approval by 
OMB. The paperwork requirements for this final rule were previously 
approved by the Office of Management and Budget (OMB) for the interim 
final rule under OMB control #0584-0576 and merged into #0584-0006.

E-Government Act Compliance

    The Food and Nutrition Service is committed to complying with the 
E-Government Act of 2002, to promote the use of the Internet and other 
information technologies to provide increased opportunities for citizen 
access to Government information and services and for other purposes.

Executive Order 13175--Consultation and Coordination With Indian Tribal 
Governments

    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, and other policy statements or 
actions that have substantial direct effects on one or more Indian 
Tribes, on the relationship between the Federal Government and Indian 
Tribes, or on the distribution of power and responsibilities between 
the federal government and Indian Tribes. In the spring of 2011, FNS 
offered opportunities for consultation with Tribal officials or their 
designees to discuss the impact of the Healthy, Hunger-Free Kids Act of 
2010 on tribes or Indian Tribal governments. The consultation sessions 
were coordinated by FNS and held on the following dates and locations:

1. HHFKA Webinar & Conference Call--April 12, 2011
2. Mountain Plains--HHFKA Consultation, Rapid City, SD--March 23, 2011
3. HHFKA Webinar & Conference Call--June, 22, 2011
4. Tribal Self-Governance Annual Conference in Palm Springs, CA--May 2, 
2011
5. National Congress of American Indians Mid-Year Conference, 
Milwaukee, WI--June 14, 2011

    The five consultation sessions in total provided the opportunity to 
address Tribal concerns related to school meals. There were no comments 
about this regulation during any of the

[[Page 50151]]

aforementioned Tribal consultation sessions.
    Currently, FNS provides regularly scheduled quarterly consultation 
sessions as a venue for collaborative conversations with Tribal 
officials or their designees. The most recent specific discussion of 
the Nutrition Standards for All Foods Sold in Schools rule was included 
in the consultation conducted on August 19, 2015. No questions or 
comments were raised specific to this rulemaking at that time.
    Reports from these consultations are part of the USDA annual 
reporting on Tribal consultation and collaboration. FNS will respond in 
a timely and meaningful manner to Tribal government requests for 
consultation concerning this rule.

List of Subjects

7 CFR Part 210

    Grant programs-education; Grant programs-health; Infants and 
children; Nutrition; Reporting and recordkeeping requirements; School 
breakfast and lunch programs; Surplus agricultural commodities.

7 CFR Part 220

    Grant programs-education; Grant programs-health; Infants and 
children; Nutrition; Reporting and recordkeeping requirements; School 
breakfast and lunch programs.

    Accordingly, for the reasons set forth in the preamble, 7 CFR parts 
210 and 220 are amended as follows:

PART 210--NATIONAL SCHOOL LUNCH PROGRAM

0
1. The authority citation for 7 CFR part 210 continues to read as 
follows:

    Authority:  42 U.S.C. 1751-1760, 1779.


0
2. In Sec.  210.11:
0
a. Revise paragraph (a)(3);
0
b. Add paragraph (a)(6);
0
c. Remove paragraph (c)(2)(v);
0
d. Paragraph (c)(2)(vi) is redesignated as (c)(2)(v);
0
e. Revise paragraph (d);
0
f. Add paragraph (f)(3)(iv);
0
g. Revise the heading and the first sentence of paragraph (i); and
0
h. Revise paragraph (j);
    The revisions and additions read as follows:


Sec.  210.11  Competitive food service and standards.

    (a) * * *
    (3) Entr[eacute]e item means an item that is intended as the main 
dish and is either:
    (i) A combination food of meat or meat alternate and whole grain 
rich food; or
    (ii) A combination food of vegetable or fruit and meat or meat 
alternate; or
    (iii) A meat or meat alternate alone with the exception of yogurt, 
low-fat or reduced fat cheese, nuts, seeds and nut or seed butters, and 
meat snacks (such as dried beef jerky); or
    (iv) A grain only, whole-grain rich entr[eacute]e that is served as 
the main dish of the School Breakfast Program reimbursable meal.
* * * * *
    (6) Paired exempt foods mean food items that have been designated 
as exempt from one or more of the nutrient requirements individually 
which are packaged together without any additional ingredients. Such 
``paired exempt foods'' retain their individually designated exemption 
for total fat, saturated fat, and/or sugar when packaged together and 
sold but are required to meet the designated calorie and sodium 
standards specified in Sec. Sec.  210.11(i) and (j) at all times.
* * * * *
    (d) Fruits and vegetables. (1) Fresh, frozen and canned fruits with 
no added ingredients except water or packed in 100 percent fruit juice 
or light syrup or extra light syrup are exempt from the nutrient 
standards included in this section.
    (2) Fresh and frozen vegetables with no added ingredients except 
water and canned vegetables that are low sodium or no salt added that 
contain no added fat are exempt from the nutrient standards included in 
this section.
* * * * *
    (f) * * *
    (3) * * *
    (iv) Whole eggs with no added fat are exempt from the total fat and 
saturated fat standards but are subject to the trans fat, calorie and 
sodium standards.
* * * * *
    (i) Calorie and sodium content for snack items and side dishes sold 
as competitive foods. Snack items and side dishes sold as competitive 
foods must have not more than 200 calories and 200 mg of sodium per 
item as packaged or served, including the calories and sodium contained 
in any added accompaniments such as butter, cream cheese, salad 
dressing, etc., and must meet all of the other nutrient standards in 
this section. * * *
    (j) Calorie and sodium content for entr[eacute]e items sold as 
competitive foods. Entr[eacute]e items sold as competitive foods, other 
than those exempt from the competitive food nutrition standards in 
paragraph (c)(3)(i) of this section, must have not more than 350 
calories and 480 mg of sodium per item as packaged or served, including 
the calories and sodium contained in any added accompaniments such as 
butter, cream cheese, salad dressing, etc., and must meet all of the 
other nutrient standards in this section.
* * * * *


Sec.  210.11a  [Removed]

0
3. Section 210.11a is removed.

Appendix B to Part 210 [Removed]

0
4. Appendix B to part 210 is removed.

PART 220--SCHOOL BREAKFAST PROGRAM

0
5. The authority citation for 7 CFR part 220 continues to read as 
follows:

    Authority:  42 U.S.C. 1773, 1779, unless otherwise noted.


Sec.  220.12a  [Removed]

0
6. Remove Sec.  220.12a.

Appendix B to Part 220 [Removed and Reserved]

0
7. Remove and reserve Appendix B to part 220.

    Dated: June 21, 2016.
Kevin W. Concannon,
Under Secretary, Food, Nutrition, and Consumer Services.
[FR Doc. 2016-17227 Filed 7-28-16; 8:45 am]
 BILLING CODE 3410-30-P



                                                  50132                Federal Register / Vol. 81, No. 146 / Friday, July 29, 2016 / Rules and Regulations

                                                  DEPARTMENT OF AGRICULTURE                                ADDRESSES:   To be considered, written                provisions set forth in the IFR. In
                                                                                                           comments must be submitted by one of                  response to comments and
                                                  Food and Nutrition Service                               the following methods:                                implementation experience as shared by
                                                                                                              • Federal eRulemaking Portal: Go to                operators, the final rule also
                                                  7 CFR Parts 210 and 220                                  http://www.regulations.gov, select                    incorporates and codifies some policy
                                                  [FNS–2011–0019]                                          ‘‘Food and Nutrition Service’’ from the               guidance to allow additional foods and
                                                                                                           agency drop-down menu, and click                      combinations to meet the nutrition
                                                  RIN 0584–AE09                                            ‘‘Submit’’. In the Docket ID column of                standards. Specifically, the regulation
                                                                                                           the search results select ‘‘FNS–2011–                 finalizes the IFR, with the following
                                                  National School Lunch Program and                        0019’’ to submit or view public                       changes:
                                                  School Breakfast Program: Nutrition                      comments and to view supporting and                      Modifies definitions as follows:
                                                  Standards for All Foods Sold in School                   related materials available                              • Adds the term ‘‘main dish’’ to the
                                                  as Required by the Healthy, Hunger-                      electronically. Information on using                  definition of ‘‘Entrée’’ for clarification;
                                                  Free Kids Act of 2010                                    Regulations.gov, including instructions                  • Adds the term ‘‘grain-only’’
                                                  AGENCY:  Food and Nutrition Service,                     for accessing documents, submitting                   breakfast entrées to the definition of
                                                  USDA.                                                    comments, and viewing the docket after                ‘‘Entrée’’ to codify policy guidance
                                                                                                           the close of the comment period is                    issued during implementation; and
                                                  ACTION: Final rule and interim final rule.
                                                                                                           available through the site’s ‘‘User Tips’’               • Adds a definition of ‘‘Paired exempt
                                                  SUMMARY:    This rule adopts as final, with              link.                                                 foods’’ to codify policy guidance issued
                                                  some modifications, the National School                     • By Mail: Send comments to Tina                   during implementation.
                                                  Lunch Program and School Breakfast                       Namian, Branch Chief, School Meals                       Expands exemptions as follows:
                                                  Program regulations set forth in the                     Branch, Policy and Program                               • Adds a specific exemption to the
                                                  interim final rule published in the                      Development Division, Child Nutrition                 total fat and saturated fat standard for
                                                  Federal Register on June 28, 2013. The                   Programs, Food and Nutrition Service,                 eggs; and
                                                  requirements addressed in this rule                      3101 Park Center Drive, Alexandria,                      • Modifies the exemption to the
                                                  conform to the provisions in the                         Virginia 22302. Mailed comments must                  General Standards for canned vegetables
                                                  Healthy, Hunger-Free Kids Act of 2010                    be postmarked on or before the                        to exempt low sodium and no-salt
                                                  regarding nutrition standards for all                    comment deadline identified in the                    added vegetables with no added fat to
                                                  foods sold in schools, other than food                   DATES section of this preamble to be                  more closely align with USDA Foods
                                                  sold under the lunch and breakfast                       assured of consideration.                             standards and industry production
                                                  programs. Most provisions of this final                     All submissions received in response               standards.
                                                  rule were implemented on July 1, 2014,                   to the interim final provision on total fat              Retains as interim with a request for
                                                  a full year subsequent to publication of                 will be included in the record and will               comment:
                                                                                                           be available to the public. Please be                    • The nutrient standard for total fat.
                                                  the interim final rule. This was in
                                                                                                           advised that the substance of the                        Makes a technical change as follows:
                                                  compliance with section 208 of the                                                                                • In § 210.11(i) and § 210.11(j), a
                                                  Healthy, Hunger-Free Kids Act of 2010,                   comments and the identity of the
                                                                                                           individuals or entities submitting                    revision is made to clarify that the
                                                  which required that State and local                                                                            calorie and sodium limits apply to all
                                                  educational agencies have at least one                   comments will be subject to public
                                                                                                           disclosure. FNS also will make the                    competitive food items available on
                                                  full school year from the date of                                                                              school campus and not just to those sold
                                                  publication of the interim final rule to                 comments publicly available by posting
                                                                                                           a copy of all comments on http://                     a la carte during the meal service.
                                                  implement the competitive food
                                                  provisions.                                              regulations.gov.                                      Impact of the 2015–2020 Dietary
                                                     Based on comments received on the                     FOR FURTHER INFORMATION CONTACT:     Tina             Guidelines for Americans
                                                  interim final rule and implementation                    Namian, Branch Chief, School Meals                      The original development of the
                                                  experience, this final rule makes a few                  Branch, Policy and Program                            standards contained in this regulation
                                                  modifications to the nutrition standards                 Development Division, Child Nutrition                 was informed by the 2010 Dietary
                                                  for all foods sold in schools                            Programs, Food and Nutrition Service,                 Guidelines for Americans (DGA), which
                                                  implemented on July 1, 2014. In                          3101 Park Center Drive, Alexandria,                   were published in December 2010.
                                                  addition, this final rule codifies specific              Virginia 22302, or by telephone at (703)              Based on a thorough review of the
                                                  policy guidance issued after publication                 305–2590.                                             recently published 2015–2020 DGA,
                                                  of the interim rule. Finally, this rule                  SUPPLEMENTARY INFORMATION:                            USDA has determined that the
                                                  retains the provision related to the                                                                           standards contained in this regulation
                                                  standard for total fat as interim and                    I. Overview
                                                                                                                                                                 are also consistent with the new DGA.
                                                  requests further comment on this single                     This rule affirms, with some                       Key recommendations from the 2010
                                                  standard.                                                modifications, the interim final rule                 DGA are maintained in the 2015–2020
                                                  DATES: Effective date: This final rule is                (IFR) that implemented amendments                     DGA, and so continue to be in line with
                                                  effective September 27, 2016.                            made by sections 203 and 208 of Public                the standards included in this rule. The
                                                     Comment date: Comments on the                         Law 111–296, the Healthy, Hunger-Free                 2015–2020 DGA contain a specific
                                                  interim final rule total fat standard must               Kids Act of 2010 (HHFKA), to the Child                additional recommendation on limiting
                                                  be submitted by September 27, 2016.                      Nutrition Act of 1966 (CNA) and the                   added sugar. A discussion of this
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                                                     Compliance dates: Except as noted in                  Richard B. Russell National School                    recommendation and its relationship to
                                                  this final rule, compliance with the                     Lunch Act (NSLA) for schools that                     the standards included in this rule is
                                                  nutrition standards and other provisions                 participate in the School Breakfast                   contained in this preamble in the
                                                  of the interim final rule began on July                  Program (SBP) and the National School                 discussion of the standard for sugar.
                                                  1, 2014. The potable water provision                     Lunch Program (NSLP). The final rule
                                                  was effective on October 1, 2010, and                    addresses public comments submitted                   II. Background
                                                  compliance with that provision was                       in response to the IFR and makes some                  The NSLP served an average of 30.4
                                                  required no later than August 27, 2013.                  adjustments that improve clarity of the               million children per day in Fiscal Year


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                                                                       Federal Register / Vol. 81, No. 146 / Friday, July 29, 2016 / Rules and Regulations                                        50133

                                                  (FY) 2014. In that same FY, the SBP                      including foods sold à la carte and in               trade associations; farm and industry
                                                  served an average of 13.6 million                        school stores and vending machines.                   groups; schools, school boards and
                                                  children daily.                                          The standards were designed to                        school nutrition and education
                                                     The NSLA (42 U.S.C. 1751 et seq.)                     complement recent improvements in                     associations; State departments of
                                                  and the CNA (42 U.S.C. 1771 et seq.)                     school meals, and to help promote diets               education; consumer groups; and others.
                                                  require the Secretary to establish                       that contribute to students’ long term                A relatively modest number of
                                                  nutrition standards for meals served                     health and well-being. The proposed                   comments were received on the IFR,
                                                  under the NSLP and SBP, respectively.                    rule also would have required schools                 many of which reiterated previous
                                                  Prior to the enactment of the HHFKA,                     participating in the NSLP and                         comments received during the proposed
                                                  section 10 of the CNA limited the                        afterschool snack service under NSLP to               rule comment period and which had
                                                  Secretary’s authority to regulate                        make water available to children at no                been taken into consideration as the IFR
                                                  competitive foods, i.e., foods sold in                   charge during the lunch and afterschool               was drafted. This final rule, therefore,
                                                  competition with the school lunch and                    snack service. USDA received a total of               incorporates relatively minor
                                                  breakfast programs, to those foods sold                  247,871 public comments to the                        modifications to the provisions of the
                                                  in the food service area during meal                     proposed rule during the 60-day                       IFR.
                                                  periods. The Secretary did not have                      comment period from February 8, 2013                     In general, there was support for the
                                                  authority to establish regulatory                        through April 9, 2013. This total                     IFR. Stakeholders were very supportive
                                                  requirements for food sold in other areas                included several single comment letters               of the IFR, and some had specific
                                                  of the school campus or at other times                   with thousands of identical comments.                 comments and suggestions on several
                                                  in the school day.                                       Approximately 245,665 of these were                   provisions included in the rule. Of the
                                                     The HHFKA, enacted December 13,                       form letters, nearly all of which were                520 comments, 103 were in full support
                                                  2010, directed the Secretary to                          related to 104 different mass mail                    of the rule. Fifty commenters objected to
                                                  promulgate regulations to establish                      campaigns. The remaining comments—                    implementation of this rule, indicating
                                                  science-based nutrition standards for                    over 2,200—were unique comments                       that no standards for competitive food
                                                  foods sold in schools other than those                   rather than form letters. Comments                    should be implemented in schools. The
                                                  foods provided under the NSLP and                        represented a diversity of interests,                 remaining commenters included
                                                  SBP. Section 208 of the HHFKA                            including advocacy organizations,                     suggested revisions to various aspects of
                                                  amended section 10 of the CNA (42                        industry and trade associations, farm                 the rule and its implementation.
                                                  U.S.C. 1779) to require that such                        and other industry groups, schools,                      Commenters recommended
                                                  nutrition standards apply to all foods                   school boards and school nutrition and                expanding exemptions to several of the
                                                  sold:                                                    education associations, State                         standards for specific food items, such
                                                     • Outside the school meal programs;                   departments of education, consumer                    as side items served in the NSLP and
                                                     • On the school campus; and                           groups and others. USDA appreciated                   the SBP, while others recommended
                                                     • At any time during the school day.                  the public interest in the proposed rule              continuing the initial sodium standard
                                                     Section 208 requires that such                        and carefully considered all comments                 for snack foods. Several commenters
                                                  standards be consistent with the most                    in drafting the IFR.                                  recommended that the General Standard
                                                  recent DGA and that the Secretary                           As referenced earlier in this preamble,            which allowed foods meeting the 10
                                                  consider authoritative scientific                        the Department published an IFR in the                percent Daily Value for nutrients of
                                                  recommendations for nutrition                            Federal Register on June 28, 2013, (78                public health concern be made
                                                  standards; existing school nutrition                     FR 39068) titled National School Lunch                permanent rather than eliminated on
                                                  standards, including voluntary                           and School Breakfast Program: Nutrition               July 1, 2016, as was included in the IFR.
                                                  standards for beverages and snack foods;                 Standards for All Foods Sold in School                More detailed discussions of these
                                                  current State and local standards; the                   as Required by the Healthy, Hunger-Free               specific issues are included in this
                                                  practical application of the nutrition                   Kids Act of 2010, and all provisions                  preamble.
                                                  standards; and special exemptions for                    were required to be implemented on                       Twenty-five comments expressed
                                                  infrequent school-sponsored                              July 1, 2014, a full year subsequent to               general support for the IFR, many citing
                                                  fundraisers.                                             publication of the IFR standards. This                concerns for childhood obesity and
                                                     In addition, the amendments made by                   was in compliance with section 208 of                 stating that competitive food standards
                                                  section 203 of the HHFKA amended                         the HHFKA requirement that State and                  will reinforce healthy eating habits in
                                                  section 9(a) of the NSLA (42 U.S.C.                      local educational agencies have at least              school and outside of school. In
                                                  1758(a)) to require that schools                         one full school year from the date of                 addition to their overall support of the
                                                  participating in the NSLP make potable                   publication of the IFR to implement the               rule, an advocacy organization and an
                                                  water available to children at no charge                 competitive food provisions.                          individual commenter stated that lower
                                                  in the place where meals are served                                                                            income students may not have the
                                                  during the meal service. This is a                       III. General Summary of Comments                      opportunity to experience healthier food
                                                  nondiscretionary requirement of the                      Received on the Interim Rule                          items outside of the school. These
                                                  HHFKA that became effective October 1,                      A total of 520 public comments on the              commenters asserted that this rule will
                                                  2010, and was required to be                             IFR were received during the 120-day                  introduce these students to healthier
                                                  implemented by August 27, 2013.                          comment period that ended on October                  foods and possibly influence home food
                                                     The Department published a proposed                   28, 2013. Fifty-three of these comments               consumption patterns and protect the
                                                  rule in the Federal Register on February                 were copies of form letters related to                nutritional needs of children. One trade
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                                                  8, 2013 (78 FR 9530), titled National                    nine different mass mail campaigns. The               association applauded the Department’s
                                                  School Lunch Program and School                          remaining comments included 460                       encouragement of dairy foods
                                                  Breakfast Program: Nutrition Standards                   letters with unique content rather than               consumption throughout the rule and
                                                  for All Foods Sold in School as Required                 form letters. A total of 386 of these                 urged that these changes be retained.
                                                  by the Healthy, Hunger-Free Kids Act of                  comments were substantive. Comments                   One individual commenter remarked
                                                  2010. This rule proposed nutrition                       represented a diversity of interests,                 that the inclusion of recordkeeping and
                                                  standards for foods offered for sale to                  including advocacy organizations;                     compliance requirements, consideration
                                                  students outside of the NSLP and SBP,                    health care organizations; industry and               of special situations, and


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                                                  50134                     Federal Register / Vol. 81, No. 146 / Friday, July 29, 2016 / Rules and Regulations

                                                  implementation information makes this                         environment. In addition, the                         final rule unless otherwise stated, or
                                                  rule even more complete.                                      Department recognizes that nutrition                  unless inconsistent with this final rule
                                                     Although in support of the IFR in                          and health education as well as physical              or this preamble. A thorough
                                                  general, two commenters asserted that                         activity are important to the                         understanding of the rationale for
                                                  there are other factors that cause obesity                    development of a healthy lifestyle and                various provisions of this final rule may
                                                  in our society besides foods available in                     encourages schools to develop local                   require reference to the preamble of
                                                  schools. For example, these commenters                        school wellness standards that                        both the proposed rule published on
                                                  suggested that reducing physical                              incorporate these items into the school               February 8, 2013 (78 FR 9530) and the
                                                  education class in school has led to                          day.                                                  interim final rule published on June 28,
                                                  increased sedentary lifestyles of                                In addition to public comments                     2013 (78 FR 39068).
                                                  children. Commenters also noted the                           submitted during the formal comment
                                                                                                                                                                         To view all public comments on the
                                                  importance of supplementing nutrition                         period, USDA continued to respond to
                                                                                                                                                                      IFR, go to www.regulations.gov and
                                                  requirements for foods available in                           feedback and questions from program
                                                                                                                operators and other impacted parties                  search for public submissions under
                                                  schools with nutrition and health
                                                                                                                throughout the implementation year in                 document number FNS–2011–0019–
                                                  education in schools.
                                                     Some of those commenters concerned                         order to provide clarification, develop               4716. Once the search results populate,
                                                  about the competitive food standards                          policy guidance, and inform us as the                 click on the blue text titled, ‘‘Open
                                                  established in the IFR asserted that                          final rule was being developed.                       Docket Folder.’’ USDA appreciates the
                                                  foods sold in schools are not the cause                          The description and analysis of                    public comments and shared operator
                                                  of childhood obesity and that the rule                        comments in this preamble focus on                    experiences as they have been essential
                                                  will result in significant revenue losses                     general comment themes, most frequent                 in developing a final rule that is
                                                  for school food service, citing financial                     comments, and those that influenced                   expected to improve the quality of all
                                                  strain on schools caused by the recently                      revisions to this final rule. Provisions              foods sold outside of the NSLP and SBP.
                                                  revised NSLP standards. Most of these                         not addressed in the preamble to this                 IV. Summary of the Final Rule
                                                  comments were opposed to the rule in                          final rule did not receive significant or             Competitive Food Standards
                                                  its entirety and did not comment on                           substantial public comments and
                                                  specific provisions of the IFR.                               remain unchanged. The reasons                            The competitive foods and beverages
                                                     The Department acknowledges that                           supporting the provisions of the                      standards included in the June 28, 2013,
                                                  there are many factors contributing to                        proposed and interim regulations were                 IFR were implemented on July 1, 2014,
                                                  childhood obesity and supports the idea                       carefully examined in light of the                    and are retained in this final rule with
                                                  that developing a healthy nutrition                           comments received to determine the                    some modifications, as noted in the
                                                  environment in school plays an                                continued applicability of the                        following chart in bold letters. The
                                                  important role in combatting childhood                        justifications. Those reasons, enunciated             modifications or changes made in this
                                                  obesity, as well. This rule reinforces the                    in the proposed and interim regulations,              final rule are discussed next in the
                                                  development of a healthy school                               should be regarded as the basis for this              preamble.

                                                                                                   SUMMARY OF FINAL RULE COMPETITIVE FOOD STANDARDS
                                                            Food/nutrient                                             Standard                                                Exemptions to the standard

                                                  General Standard for Com-                  To be allowable, a competitive FOOD item must:                  • Fresh and frozen fruits and vegetables with no added
                                                   petitive Food.                                 (1) Meet all of the proposed competitive food nutri-         ingredients except water are exempt from all nutrient
                                                                                                     ent standards; and                                        standards.
                                                                                                  (2) Be a grain product that contains 50% or more           • Canned fruits with no added ingredients except
                                                                                                     whole grains by weight or have whole grains as            water, which are packed in 100% juice, extra light
                                                                                                     the first ingredient; or                                  syrup, or light syrup are exempt from all nutrient
                                                                                                  (3) Have as the first ingredient one of the non-             standards.
                                                                                                     grain main food groups: fruits, vegetables, dairy,      • Low sodium/No salt added canned vegetables with
                                                                                                     or protein foods (meat, beans, poultry, seafood,          no added fats are exempt from all nutrient standards.
                                                                                                     eggs, nuts, seeds, etc.); or
                                                                                                  (4) Be a combination food that contains at least 1⁄4
                                                                                                     cup fruit and/or vegetable.
                                                                                                  (5) If water is the first ingredient, the second ingre-
                                                                                                     dient must be one of the above.
                                                  NSLP/SBP Entrée Items                     Any entrée item offered as part of the lunch program or
                                                   Sold à la Carte.                           the breakfast program is exempt from all competitive
                                                                                               food standards if it is served as a competitive food
                                                                                               on the day of service or the day after service in the
                                                                                               lunch or breakfast program.
                                                  Grain Items ..........................     Acceptable grain items must include 50% or more
                                                                                               whole grains by weight, or have whole grains as the
                                                                                               first ingredient.
                                                  Total Fats 1 ...........................   Acceptable food items must have ≤35% calories from              • Reduced fat cheese (including part-skim mozzarella)
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                                                                                               total fat as served.                                            is exempt from the total fat standard.
                                                                                                                                                             • Nuts and seeds and nut/seed butters are exempt
                                                                                                                                                               from the total fat standard.
                                                                                                                                                             • Products consisting of only dried fruit with nuts and/
                                                                                                                                                               or seeds with no added nutritive sweeteners or fats
                                                                                                                                                               are exempt from the total fat standard.
                                                                                                                                                             • Seafood with no added fat is exempt from the total
                                                                                                                                                               fat standard.



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                                                                              Federal Register / Vol. 81, No. 146 / Friday, July 29, 2016 / Rules and Regulations                                              50135

                                                                                               SUMMARY OF FINAL RULE COMPETITIVE FOOD STANDARDS—Continued
                                                             Food/nutrient                                               Standard                                                Exemptions to the standard

                                                                                                                                                                • Whole eggs with no added fat are exempt from the
                                                                                                                                                                  total fat standard.
                                                                                                                                                                Combination products other than paired exempt foods
                                                                                                                                                                  are not exempt and must meet all the nutrient stand-
                                                                                                                                                                  ards.
                                                  Saturated Fats .....................         Acceptable food items must have <10% calories from               • Reduced fat cheese (including part-skim mozzarella)
                                                                                                 saturated fat as served.                                         is exempt from the saturated fat standard.
                                                                                                                                                                • Nuts and seeds and nut/seed butters are exempt
                                                                                                                                                                  from the saturated fat standard.
                                                                                                                                                                • Products consisting of only dried fruit with nuts and/
                                                                                                                                                                  or seeds with no added nutritive sweeteners or fats
                                                                                                                                                                  are exempt from the saturated fat standard.
                                                                                                                                                                • Whole eggs with no added fat are exempt from the
                                                                                                                                                                  saturated fat standard.
                                                                                                                                                                Combination products other than paired exempt foods
                                                                                                                                                                  are not exempt and must meet all the nutrient stand-
                                                                                                                                                                  ards.
                                                  Trans Fats ............................      Zero grams of trans fat as served (≤0.5 g per portion).
                                                  Sugar ....................................   Acceptable food items must have ≤35% of weight from              • Dried whole fruits or vegetables; dried whole fruit or
                                                                                                 total sugar as served.                                           vegetable pieces; and dehydrated fruits or vegetables
                                                                                                                                                                  with no added nutritive sweeteners are exempt from
                                                                                                                                                                  the sugar standard.
                                                                                                                                                                • Dried whole fruits, or pieces, with nutritive sweet-
                                                                                                                                                                  eners that are required for processing and/or palat-
                                                                                                                                                                  ability purposes (i.e., cranberries, tart cherries, or
                                                                                                                                                                  blueberries) are exempt from the sugar standard.
                                                                                                                                                                • Products consisting of only dried fruit with nuts and/
                                                                                                                                                                  or seeds with no added nutritive sweeteners or fats
                                                                                                                                                                  are exempt from the sugar standard.
                                                  Sodium .................................     Snack items and side dishes: ≤200 mg sodium per item
                                                                                                 as served, including any added accompaniments.
                                                                                               Entrée items: ≤480 mg sodium per item as served, in-
                                                                                                 cluding any added accompaniments.
                                                  Calories ................................    Snack items and side dishes: ≤200 calories per item as
                                                                                                 served, including any added accompaniments.
                                                                                               Entrée items: ≤350 calories per item as served includ-
                                                                                                 ing any added accompaniments.
                                                  Accompaniments ..................            Use of accompaniments is limited when competitive
                                                                                                 food is sold to students in school. The accompani-
                                                                                                 ment must be included in the nutrient profile as part
                                                                                                 of the food item served and meet all proposed stand-
                                                                                                 ards.
                                                  Caffeine ................................    Elementary and Middle School: foods and beverages
                                                                                                 must be caffeine-free with the exception of trace
                                                                                                 amounts of naturally occurring caffeine substances.
                                                                                               High School: foods and beverages may contain caf-
                                                                                                 feine.
                                                  Beverages ............................       Elementary School
                                                                                               • Plain water or plain carbonated water (no size limit);
                                                                                               • Low fat milk, unflavored (≤8 fl oz);
                                                                                               • Non-fat milk, flavored or unflavored (≤8 fl oz), includ-
                                                                                                 ing nutritionally equivalent milk alternatives as per-
                                                                                                 mitted by the school meal requirements;
                                                                                               • 100% fruit/vegetable juice (≤8 fl oz); and.
                                                                                               • 100% fruit/vegetable juice diluted with water (with or
                                                                                                 without carbonation), and no added sweeteners (≤8 fl
                                                                                                 oz).
                                                                                               Middle School
                                                                                               • Plain water or plain carbonated water (no size limit);
                                                                                               • Low-fat milk, unflavored (≤12 fl oz);
                                                                                               • Non-fat milk, flavored or unflavored (≤12 fl oz), in-
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                                                                                                 cluding nutritionally equivalent milk alternatives as
                                                                                                 permitted by the school meal requirements;
                                                                                               • 100% fruit/vegetable juice (≤12 fl oz); and
                                                                                               • 100% fruit/vegetable juice diluted with water (with or
                                                                                                 without carbonation), and no added sweeteners (≤12
                                                                                                 fl oz).
                                                                                               High School
                                                                                               • Plain water or plain carbonated water (no size limit);
                                                                                               • Low-fat milk, unflavored (≤12 fl oz);



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                                                  50136                 Federal Register / Vol. 81, No. 146 / Friday, July 29, 2016 / Rules and Regulations

                                                                                    SUMMARY OF FINAL RULE COMPETITIVE FOOD STANDARDS—Continued
                                                           Food/nutrient                                         Standard                                                Exemptions to the standard

                                                                                        • Non-fat milk, flavored or unflavored (≤12 fl oz), in-
                                                                                          cluding nutritionally equivalent milk alternatives as
                                                                                          permitted by the school meal requirements;
                                                                                        • 100% fruit/vegetable juice (≤12 fl oz);
                                                                                        • 100% fruit/vegetable juice diluted with water (with or
                                                                                          without carbonation), and no added sweeteners (≤12
                                                                                          fl oz);
                                                                                        • Other flavored and/or carbonated beverages (≤20 fl
                                                                                          oz) that are labeled to contain <5 calories per 8 fl oz,
                                                                                          or ≤10 calories per 20 fl oz; and
                                                                                        • Other flavored and/or carbonated beverages (≤12 fl
                                                                                          oz) that are labeled to contain ≤40 calories per 8 fl
                                                                                          oz, or ≤60 calories per 12 fl oz.
                                                  Sugar-free Chewing Gum ....           Sugar-free chewing gum is exempt from all of the com-
                                                                                          petitive food standards and may be sold to students
                                                                                          at the discretion of the local educational agency.



                                                                                                           wishes to point out that the                          and after school sales of noncompliant
                                                                                                           amendments made by the HHFKA do                       competitive foods.
                                                  V. Discussion of Comments and                                                                                     The Department wishes to reiterate
                                                                                                           not provide the Secretary with
                                                  Changes to the Final Rule                                                                                      that section 208 of the HHFKA amended
                                                                                                           jurisdiction over foods brought from
                                                  Definitions                                              outside of the school. Therefore, the                 the CNA to require that the competitive
                                                                                                           definition for ‘‘competitive food’’ is                food standards apply to foods sold at
                                                     The amendments made by the
                                                                                                           unchanged in this rule.                               any time during the school day, which
                                                  HHFKA stipulate that the nutrition
                                                                                                             School day means, for the purpose of                does not include afterschool programs,
                                                  standards for competitive food apply to
                                                                                                           competitive food standards                            events and activities. In addition, as a
                                                  all foods and beverages sold: (a) Outside
                                                                                                           implementation, the period from the                   reminder, these standards are minimum
                                                  the school meals programs; (b) on the
                                                                                                           midnight before, to 30 minutes after the              standards. If an LEA wishes to expand
                                                  school campus; and (c) at any time
                                                                                                           end of the official school day. Thirty                the application of the standards to
                                                  during the school day. The IFR at
                                                                                                           comments were received on this                        afterschool activities, they may do so.
                                                  § 210.11(a) included definitions of
                                                                                                           definition. Nine of those comments                    The definition of ‘‘school day’’ is,
                                                  Competitive food, School day, and
                                                                                                           mentioned the applicability of the IFR                therefore, unchanged in this final rule.
                                                  School campus.
                                                                                                           to non-school hours.                                  In addition, in order to clarify the
                                                     Competitive food means all food and
                                                                                                                                                                 applicability of the competitive foods
                                                  beverages other than meals reimbursed                      Some commenters, including a trade
                                                                                                                                                                 nutrition standards, if a school operates
                                                  under programs authorized by the NSLA                    association, a food manufacturer, and a
                                                                                                                                                                 a before or after-school program through
                                                  and the CNA available for sale to                        school district, expressed support for
                                                                                                                                                                 the Child and Adult Care Food Program
                                                  students on the School campus during                     the IFR definition for ‘‘school day.’’
                                                                                                                                                                 or the NSLP, the meal pattern
                                                  the School day. Fifteen comments were                    However, more commenters disagreed
                                                                                                                                                                 requirements of the appropriate program
                                                  received on this definition. Several                     with the IFR definition of ‘‘school day’’
                                                                                                                                                                 shall be followed.
                                                  commenters, including advocacy                           primarily requesting that the definition
                                                  organizations and professional                           should be expanded to include all times               Paired Exempt Foods
                                                  associations, generally agreed with the                  during which students are on campus                      The competitive food standards
                                                  definition for ‘‘competitive food.’’ More                and engaged in school-sponsored                       provide exemptions for certain foods
                                                  specifically, these commenters                           activities or all after-school hours in               that are nutrient dense, even if they may
                                                  supported that the competitive food                      order to achieve the objective of                     not meet all of the specific nutrient
                                                  standards will apply to all foods and                    promoting healthy food choices for                    requirements. For example, all fresh,
                                                  beverages sold across the school campus                  children. Some commented that                         frozen and most canned fruits as
                                                  and throughout the school day (until at                  imposing competitive food standards                   specified in § 210.11(d)(1) are exempt
                                                  least 30 minutes after school ends). An                  during the school day but eliminating                 from all of the nutrient standards
                                                  advocacy organization and an                             them after school sends a mixed                       because we want to encourage students
                                                  individual commenter suggested that                      message with regard to the need to eat                to consume more of these foods.
                                                  FNS substitute the word ‘‘served’’ for                   healthy foods at all times.                           Similarly, peanut butter and other nut
                                                  the term ‘‘available for sale’’ in the                     In contrast, a trade association and a              butters are exempt from the total fat and
                                                  definition of ‘‘competitive food’’                       food manufacturer suggested that USDA                 saturated fat standards, since these
                                                  because doing so would send a more                       should more narrowly define ‘‘school                  foods are also nutrient dense and
                                                  consistent message to students and                       day’’ to exclude foods sold at school                 primarily consist of healthier fats.
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                                                  families by assuring that all foods                      programs and activities that occur                       A combination food is defined as a
                                                  brought into the school were subject to                  before the start of the instructional                 product that contains two or more foods
                                                  the same standards. The Department                       school day to achieve consistency with                representing two or more of the food
                                                                                                           the treatment of afterschool activities.              groups: Fruit, vegetable, dairy, protein
                                                     1 Please note that the Total Fat nutrient standard
                                                                                                           Other individual commenters suggested                 or grains. When foods are combined,
                                                  is being maintained as an interim final standard.
                                                  The Department is requesting additional comments
                                                                                                           that the school day should start at the               they no longer retain their individual
                                                  on this standard in this rulemaking. Please see          beginning of school and end at the                    exemptions and must meet the nutrient
                                                  further discussion in Part V of this preamble.           dismissal bell in order to allow morning              standards that apply to a single item.


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                                                                       Federal Register / Vol. 81, No. 146 / Friday, July 29, 2016 / Rules and Regulations                                         50137

                                                     However, the regulation did not                          • A meat or meat alternate alone,                  is permitted to determine which item(s)
                                                  specifically address the treatment of                    with the exception of yogurt, low-fat or              are the entrée items for breakfasts
                                                  foods that are exempt from the                           reduced fat cheese, nuts, seeds and nut               offered as part of the SBP. The policy
                                                  regulatory requirements when they are                    or seed butters.                                      flexibility was well received and,
                                                  simply paired and packaged with other                       During the course of implementation,               therefore, this final rule amends the
                                                  products (without added ingredients)                     some questions were received with                     definition of ‘‘Entrée item’’ to include
                                                  that are also exempt from one or more                    regard to packaging and selling two                   reference to whole grain rich, grain-only
                                                  of the standards. Many of these ‘‘paired                 snack items together, such as a cheese                breakfast items served in the SBP,
                                                  exemptions’’ are nutrient dense and                      stick and a pickle or a whole grain-rich              making them allowable breakfast entrées
                                                  contain foods that meet the intent of the                cookie and yogurt, and considering that               subject to the entrée exemptions
                                                  competitive foods requirements. In                       item to be an entrée in order to sell                allowed in the rule on the day of and
                                                  response to concerns raised by operators                 products with the higher entrée calorie              the day after service in the SBP. Such
                                                  in the first year of implementation, FNS                 and sodium limits. The proposed rule                  entrée items also may be served at lunch
                                                  issued policy guidance clarifying that                   clearly expressed the Department’s                    in the NSLP on the day of or the day
                                                  ‘‘paired exempt foods’’ retain their                     intent that an entrée be the main dish               after service in the SBP.
                                                  individually designated exemption for                    in the meal. Therefore, in order to                      In summary, this final rule makes no
                                                  total fat, saturated fat, and/or sugar                   clarify the definition of ‘‘Entrée item’’,           changes to the IFR definitions of
                                                  when packaged together and sold.                         the phrase ‘‘intended as the main dish’’              Competitive food, Combination foods,
                                                  Paired exempt foods are required to                      is being added to the regulatory                      School day, and School campus at
                                                  meet the designated calorie and sodium                   definition.                                           § 210.11(a). This rule adds a definition
                                                  standards specified in paragraphs                           Some commenters, including trade                   of Paired exempt foods to allow paired
                                                  § 210.11(i) and (j) at all times. Some                   associations and food manufacturers,                  exemption items to be sold in schools,
                                                  examples of paired exemptions include:                   urged FNS to expand the definition of                 and amends the definition of Entrée
                                                     • Peanut Butter and celery. Peanut                    entrée to include a grain only, whole-               item to include: (1) A specific reference
                                                  butter is exempt from the total fat and                  grain rich entrée, on the basis that such            to grain only breakfast entrées served in
                                                  saturated fat requirements. When it is                   foods are commonly served entrée items               the SBP, and (2) to incorporate the term
                                                  paired with a vegetable or fruit, such as                in the SBP (e.g., pancakes, cereal, or                ‘‘intended as the main dish’’ into the
                                                                                                           waffles). A trade association and a food              definition to further clarify the
                                                  celery, the paired snack retains the total
                                                                                                           manufacturer commented that if a                      requirements for entrées as well as
                                                  fat and saturated fat exemptions and
                                                                                                           breakfast item does not qualify for the               entrée exemptions.
                                                  may be served as long as the calorie and
                                                                                                           definition of entrée item, it will be
                                                  sodium limits are met.                                                                                         State and Local Educational Agency
                                                                                                           restricted to the 200-calorie limit for
                                                     • Celery paired with peanut butter                                                                          Standards
                                                                                                           snack items, which falls well below the
                                                  and unsweetened raisins. As noted                        minimum calorie requirements for                         Under § 210.11(b)(1) of the IFR, State
                                                  above, celery and peanut butter both                     breakfast under the SBP.                              and/or LEAs have the discretion to
                                                  have exemptions. Similarly, dried fruit,                    An individual commenter                            establish more rigorous restrictions on
                                                  such as unsweetened raisins, are exempt                  recommended creating a separate                       competitive food, as long as they are
                                                  from the sugar limit. However, calorie                   definition of ‘‘breakfast entrée’’ to allow          consistent with the provisions set forth
                                                  and sodium limits still apply to the                     grain/bread items as an option. A                     in program regulations.
                                                  snack as a whole.                                        professional association and a food                      Thirty-five comments addressed this
                                                     • Reduced fat cheese served with                      manufacturer requested that typical                   discretion and numerous commenters
                                                  apples. Reduced fat cheese is exempt                     breakfast foods, such as a bagel and its              expressly supported the provision.
                                                  from the total fat and saturated fat                     accompaniments be considered an                       Several commenters, including a school
                                                  limits. When it is paired with a                         entrée rather than a snack/side item at              professional association, and individual
                                                  vegetable or fruit, such as apples, the                  breakfast time or at lunch time.                      commenters, urged FNS to not allow
                                                  paired snack is only required to meet                    However, a State department of                        additional standards for competitive
                                                  the calorie and sodium limits.                           education, a community organization,                  foods beyond the Federal standards
                                                     • Peanuts and apples. Peanuts are                     and some individual commenters                        because a national standard will allow
                                                  exempt from the total fat and saturated                  recommended that FNS not allow a                      manufacturers to produce food items at
                                                  fat limits. When peanuts are paired with                 grain-only entrée to qualify as a                    a lower cost. A trade association
                                                  a vegetable or fruit, such as apples, the                breakfast entrée item. The community                 recognized that the IFR may not be
                                                  paired snack is only required to meet                    organization argued that these items are              preemptive, but requested that USDA
                                                  calorie and sodium limits.                               of minimal nutritional value and                      not encourage States to create additional
                                                     Operator implementation using the                     typically involve the addition of high-               criteria for competitive foods. This
                                                  policy guidance was positive. Therefore,                 sugar syrups. The State department of                 commenter expressed concerns that
                                                  FNS is formalizing this policy                           education commented that allowing                     inconsistent State policies for
                                                  clarification through this final rule by                 grain-only entrée items under the                    competitive foods will limit
                                                  adding a definition of Paired exempt                     competitive food regulations would                    reformulation opportunities.
                                                  foods at § 210.11(a)(6).                                 allow schools to sell SBP entrée items                  However, 12 advocacy organizations
                                                                                                           such as muffins, waffles, and pancakes                and an individual commenter expressed
                                                  Definition of Entrée Item
                                                                                                           that would not otherwise meet the                     the need for a national framework for
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                                                     Entrée item was defined in                           competitive food standards.                           competitive foods and also expressed
                                                  § 210.11(a)(3) as an item that includes                     In view of the comments as well as                 support for allowing States and
                                                  only the following three categories of                   input received on grain-only entrées                 localities to implement locally-tailored,
                                                  main dish food items:                                    during implementation of the IFR, the                 standards that are not inconsistent with
                                                     • A combination food of meat or meat                  Department published Policy                           the Federal requirements. Similarly,
                                                  alternate and whole grain rich food;                     Memorandum SP 35–2014 to clarify                      some school professional associations
                                                     • A combination food of vegetable or                  that, although grain-only items were not              and individual commenters supported
                                                  fruit and meat or meat alternate; or                     included in the IFR as entrées, an SFA               allowing States the flexibility to create


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                                                  50138                Federal Register / Vol. 81, No. 146 / Friday, July 29, 2016 / Rules and Regulations

                                                  their own restrictions on competitive                    foods standards subsequent to                         the whole grains per serving should be
                                                  foods, as needed.                                        publication of the IFR.                               greater than or equal to 8 grams in the
                                                    The ability of State agencies and LEAs                                                                       whole grain-rich identifying criteria.
                                                  to establish additional standards that do                Combination Foods
                                                                                                                                                                 Three individual commenters generally
                                                  not conflict with the Federal                              The general nutrition standard in the               opposed the whole grain-rich
                                                  competitive food requirements is                         rule at § 210.11(c)(2)(iv) specifies that             requirement.
                                                  consistent with the intent of section 208                combination foods must contain 1⁄4 cup                   As indicated in the preamble to the
                                                  of the HHFKA, and with the operation                     of fruit or vegetables. The Department                proposed rule, this standard is
                                                  of the Federal school meal programs in                   received 45 comments on this provision                consistent with the DGA
                                                  general. That discretion also provides an                of the IFR, the majority of which urged               recommendations, the whole grain-rich
                                                  appropriate level of flexibility to States               us to reduce the fruit or vegetable                   requirements for school meals and the
                                                  and LEAs to set or maintain additional                   components to 1⁄8 cup to be consistent                prior HUSSC whole grain-rich
                                                  requirements that reflect their particular               with NSLP/SBP standards, which allow                  requirement (HUSSC has subsequently
                                                  circumstances consistent with the                        schools to credit 1⁄8 cup of fruit or                 updated the standards to conform to
                                                  development of their local school                        vegetable toward the total quantity                   these competitive food standards). The
                                                  wellness policies. Any additional                        required for school meals. As indicated               Department wishes to point out that the
                                                  restrictions on competitive food                         in the preamble to the IFR rule,                      whole grain criteria for competitive
                                                  established by school districts must be                  maintaining the higher 1⁄4 cup quantity               foods is used as a criterion for
                                                  consistent with both the Federal                         requirement for fruits/vegetables in                  determining the allowability of an
                                                  requirements as well as any State                        combination foods generally supports                  individual item to be sold as a
                                                  requirements.                                            the availability of more nutritious                   competitive food, while school meals’
                                                    This final rule makes no change to the                 competitive food products and is                      whole grain-rich criteria determine the
                                                  provision allowing States and LEAs to                    consistent with the Institute of Medicine             crediting of the menu items toward the
                                                  establish additional competitive food                    (IOM) recommendations and the DGA.                    grain component of the meal. Allowing
                                                  standards that are not inconsistent with                 Competitive foods are evaluated on the                the additional measures for grain
                                                  the Federal requirements. This                           basis of the qualities of the individual              suggested by some commenters such as
                                                  provision may be found at                                product being sold as opposed to the                  ≥8 grams of whole grain would not
                                                  § 210.11(b)(1).                                          quantity of the ingredients of the                    ensure that grain products in
                                                                                                           product being credited toward the meal                competitive food contain at least 50
                                                  Suggestions To Prohibit Foods With                       pattern requirement in the NSLP or SBP.               percent whole grains and would require
                                                  Artificial Colors, Flavors and/or                        Moreover, it is important to note that                additional information from the
                                                  Preservatives                                            combination foods with less than 1⁄4 cup              manufacturer. Therefore, the whole
                                                     Four individual commenters                            of a fruit or vegetable may indeed                    grain-rich standard established in the
                                                  expressed concerns about continuing to                   qualify under the other food                          interim final rule is affirmed in this
                                                  allow the sale of foods that contain                     requirements specified in the rule, such              final rule.
                                                  genetically modified organisms (GMO)                     as the whole grain rich or food group                    The food industry has made a
                                                  and foods containing artificial                          criteria, depending on the composition                significant effort to reformulate products
                                                  ingredients, colors, and flavors. Just                   of the food item. It is only for those                to meet this standard and to reinforce
                                                  over 30 comments were received on                        foods that qualify solely on the basis of             the importance of whole grains to the
                                                  other issues relating to food                            being a competitive food product that                 general public as well. These efforts
                                                  requirements. These comments                             contains a fruit or vegetable that this 1⁄4           have resulted in the availability of
                                                  included suggestions such as                             cup specification is required. This food              numerous whole grain-rich products in
                                                  eliminating or putting limitations on                    standard as specified in                              the general public marketplace as well
                                                  high fructose corn syrup, sugar, fiber,                  § 210.11(c)(2)(iv) is, therefore, retained            as in the foods available for service and
                                                  and GMO foods. One individual                            in the final rule.                                    purchase in schools. Maintaining this
                                                  commenter urged that all foods sold in                                                                         standard ensures that students have the
                                                                                                           Whole Grains
                                                  schools should be organic.                                                                                     flexibility to make choices among the
                                                     The Food and Drug Administration                        One of the general standards for                    numerous whole grain-rich products
                                                  (FDA) makes determinations regarding                     competitive foods included in                         that are now available to them in school.
                                                  the safety of particular food additives                  § 210.11(c)(2)(ii) and (e) requires that                 Since this competitive food standard
                                                  and USDA defers to FDA on such                           grain products be whole-grain rich,                   is consistent with the DGA
                                                  determinations. As discussed                             meaning that they must contain 50                     recommendations, the whole grain-rich
                                                  previously, these standards are minimal                  percent or more whole grains by weight                requirements for school meals, and
                                                  standards that must be met regarding                     or have whole grains as the first                     HUSSC standards, this final rule affirms
                                                  competitive foods sold in schools. This                  ingredient.                                           the requirement as established by
                                                  final rule continues to provide the                        About 60 comments addressed this                    interim final rule.
                                                  flexibility to implement additional                      IFR requirement. Many commenters,
                                                                                                           including a State department of                       DGA Nutrients of Public Health Concern
                                                  standards at the State and/or local level.
                                                                                                           education, urged USDA to make the                       In recognition of the marketplace and
                                                  General Competitive Foods Standards                      competitive food whole grain standard                 implementation limitations, but also
                                                    The rationale for many comments                        consistent with the NSLP/SBP whole                    mindful of important national nutrition
asabaliauskas on DSK3SPTVN1PROD with RULES




                                                  received on the IFR was consistency                      grain standard. Several commenters,                   goals, the IFR implemented a phased-in
                                                  with the HUSSC and Alliance for a                        including a school professional                       approach to identifying allowable
                                                  Healthier Generation standards. The                      association and individual commenters,                competitive foods under the general
                                                  Department wishes to point out that                      supported the ‘‘whole grain rich’’                    standard. For the initial implementation
                                                  while those standards were considered                    requirement. In particular, food                      period in School Year 2014–15 through
                                                  in the development of the proposed                       manufacturers, trade associations, and a              June 30, 2016 (School Year 2015–16),
                                                  rule, both of those standards have                       school district emphasized the                        the general food standard included a
                                                  conformed to the USDA competitive                        importance of including the criteria that             criterion that if a competitive food met


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                                                                       Federal Register / Vol. 81, No. 146 / Friday, July 29, 2016 / Rules and Regulations                                        50139

                                                  none of the other General Standards,                        Twenty commenters expressed                        Fruits and Vegetables
                                                  that food may be considered allowable                    general support for the IFR nutrient                     Generally consistent with both the
                                                  if it contained 10 percent of the Daily                  standards for competitive foods without               IOM and the DGA, the IFR included an
                                                  Value of a nutrient of public health                     discussing a specific element of the                  exemption to the nutrient standards for
                                                  concern (i.e., calcium, potassium,                       nutrient standards. Several advocacy                  fresh, frozen and canned fruits and
                                                  vitamin D, or dietary fiber). Effective                  organizations and professional                        vegetables with no added ingredients
                                                  July 1, 2016, this criterion was removed                 associations agreed with requiring that               except water or, in the case of fruit,
                                                  as a general criterion.                                  all foods sold in schools meet the                    packed in 100 percent fruit juice, extra
                                                     Eight commenters, including some                      nutrient standards and with limiting                  light syrup or light syrup; and for
                                                  food manufacturers, opposed the phase                    calories, fats, sugars, and sodium in                 canned vegetables that contain a small
                                                  out of this criterion as a General                       snack foods and beverages. A health                   amount of sugar for processing purposes
                                                  Standard for allowable foods. However,                   care association expressed support for                in order to maintain the quality and
                                                  information available to the Department                  the nutrition standards adopted in the                structure of the vegetable.
                                                  indicates that industry has made major                   IFR suggesting that any changes made                     Ten comments expressed support for
                                                  strides over the past three years and                    should strengthen the standards and not               the IFR exemption from the nutrient
                                                  many manufacturers have come into                        weaken them. Another health care                      standards for fresh, frozen, or canned
                                                  compliance with the competitive food                     association expressed the belief that the             fruits and vegetables. In particular, a
                                                  standards by reformulating their                         established limits will inherently                    school professional association and
                                                  products in recognition of the fact that                 preclude the sale of candy and other                  some individual commenters agreed
                                                  the 10-percent DV General Standard                                                                             with the decision to include ‘‘light
                                                                                                           confections and products with added
                                                  would become obsolete as of July 1,                                                                            syrup’’ in the exemption. A food
                                                                                                           sugars that promote tooth decay. An
                                                  2016. Prior to July 1, 2016, fewer than                                                                        manufacturer supported the inclusion of
                                                                                                           individual commented that the nutrient
                                                  21 products that depended solely on the                                                                        all forms of fruit, and products made
                                                  10-percent DV General Standard                           standards will eliminate many
                                                                                                           seemingly healthy foods that are                      with fruit, without added nutritive
                                                  appeared on the Alliance for a Healthier                                                                       sweeteners, as competitive foods.
                                                  Generation (AHG) Food Navigator as                       surprisingly laden with sugar, calories,
                                                                                                                                                                    Three commenters recommended that
                                                  Smart Snacks compliant foods. There                      fat, or salt. A trade association
                                                                                                                                                                 the exemption for fruits and vegetables
                                                  are currently about 2,500 Smart Snacks                   supported the use of a nutrition criteria-
                                                                                                                                                                 be more stringent. These commenters
                                                  compliant products listed in the AHG                     based system for competitive food
                                                                                                                                                                 suggested that any added syrup
                                                  product database. This means that items                  standards, as opposed to a structure that             contributes added unneeded sugars.
                                                  that had qualified based solely upon the                 allows and disallows specific foods,                  Two trade associations supported the
                                                  10-percent DV General Standard                           because manufacturers will have the                   IFR provision that fruit packed in light
                                                  represented less than 1 percent (0.84                    opportunity to reformulate and innovate               syrup is exempt from the nutrition
                                                  percent) of the products that had been                   to meet the rule’s provisions.                        standards.
                                                  captured in the Alliance Navigator.                         Seven commenters expressed general                    However, a few comments were
                                                     Therefore, this final rule makes no                   opposition to the IFR nutrient standards              received addressing the exemption
                                                  changes to the General Standards for                     for competitive foods without                         parameters for canned vegetables—
                                                  competitive foods established by the IFR                 discussing a specific element of the                  allowing an exemption only for those
                                                  and the 10-percent DV standard has                       nutrient standards. A few individual                  canned vegetables containing water and
                                                  expired as scheduled. Eliminating the                    commenters expressed concerns that the                a small amount of sugar for processing.
                                                  10-percent DV criterion more closely                     IFR nutrient standards will encourage                 A trade association and a food
                                                  aligns the competitive food standards                    chemically processed low-fat foods and                manufacturer stated that they were not
                                                  with the DGA, as required by the                         sugar substitutes at the expense of                   aware of any canned vegetables that
                                                  HHFKA.                                                   whole foods and natural sugars. A food                contain only water and sugar for
                                                     Elimination of this standard aligns the               manufacturer urged USDA to simplify                   processing purposes. They indicated
                                                  competitive foods rule with the DGA                      the criteria for competitive foods by                 that sodium, citric acid, and other
                                                  which states that ‘‘nutrients should                     using only the calorie limit and                      ingredients are commonly used in the
                                                  come primarily from foods’’ as well as                   eliminating the total fat, saturated fat,             processing of canned vegetables. They
                                                  the IOM recommendations which                            and sugar limits, arguing that the                    also pointed out that those processing
                                                  indicate that this approach ‘‘reinforces                 combined calorie limit and food group                 aids are allowed to be used in the low
                                                  the importance of improving the overall                  standards would be less burdensome to                 sodium vegetables packed for the USDA
                                                  quality of food intake rather than                       implement and would inherently limit                  Foods Program.
                                                  nutrient-specific strategies such as                     fats and sugars.                                         The Department wishes to point out
                                                  fortification and supplementation.’’                                                                           that, although some sodium is used in
                                                                                                              The overwhelming majority of                       processing canned vegetables, most
                                                  Specific Nutrient Standards § 210.11(d)–                 comments received on the proposed                     canned vegetables would still meet the
                                                  (k)                                                      rule supported the nutrient standards                 nutrient standards for sodium without
                                                     In addition to the General Standards,                 and those standards were incorporated                 being given a specific exemption.
                                                  the rule includes nutrient standards for                 into the IFR with some minor changes.                 However, in light of the important
                                                  specific nutrients contained in                          The IFR comments received on this                     nutrients provided by vegetables, for
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                                                  allowable foods. These include                           issue were minimal and primarily                      ease of operator implementation and in
                                                  standards for total fat, saturated fat,                  supported the established standards.                  recognition of common processing
                                                  trans fat, total sugars, calories and                    Therefore, this rule finalizes the                    procedures, the Department agrees that
                                                  sodium. These standards apply to                         nutrient standards as included in the                 low sodium/no salt added canned
                                                  competitive foods as packaged or served                  IFR with the addition of several                      vegetables should also benefit from the
                                                  to ensure that the competitive food                      modifications being made to items                     fruit and vegetable exemption. This
                                                  standards apply to the item sold to the                  exempt from those nutrient standards as               final rule, therefore, revises the canned
                                                  student.                                                 discussed below.                                      vegetable exemption to allow low


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                                                  50140                Federal Register / Vol. 81, No. 146 / Friday, July 29, 2016 / Rules and Regulations

                                                  sodium/no salt added canned vegetables                      Fifty-five comments addressed the                  and trans fats which will limit
                                                  with no added fat to be exempt from                      IFR exemptions from the total fat limit.              unhealthy fats. Comments are also
                                                  each of the competitive food nutrient                    Three trade associations and a food                   sought on whether the total fat standard
                                                  standards.                                               manufacturer expressed support for the                should be maintained but should
                                                                                                           exemption for part-skim mozzarella.                   exempt certain food items. While the
                                                  Total Fat, Saturated Fat and Trans Fat                   Two individual commenters, however,                   total fat standard as currently
                                                     To qualify as an allowable                            opposed the exemption for reduced-fat                 implemented will continue to be in
                                                  competitive food, the IFR at § 210.11(f)                 cheese and part-skim mozzarella,                      place, this single, individual standard
                                                  requires that no more than 35 percent of                 asserting that whole foods may be                     remains an interim final standard. The
                                                  the total calories per item as packaged                  healthier than low-fat alternatives.                  Department, as previously noted, will
                                                  or served be derived from total fat and                  Three trade associations and a school                 accept public comments on this
                                                  requires that the saturated fat content of               district favored extending the                        standard only. The Department is
                                                  a competitive food be less than 10                       exemption for reduced-fat cheese to all               interested in comments related to the
                                                  percent of total calories per item as                    cheese that meets the calorie limits.                 impact revising or eliminating the total
                                                  packaged or served. In addition, as                         Some commenters suggested various                  fat standard may have. This could
                                                  specified in § 210.11(g), a competitive                  other modifications to the standards for              include allowing more items to be sold
                                                  food must contain zero grams of trans                    individual foods, such as eggs, yogurt,               that are lower in unhealthy, saturated
                                                  fat per portion as packaged or served                    and full fat cheese. A couple of                      fats but that might be higher in healthy,
                                                  (not more than 0.5 grams per portion).                   comments dealt with various                           unsaturated fats and simplifying
                                                     While there are no exemptions from                    combinations of food items that are                   implementation for local operators.
                                                  the trans fat standard, there are a                      effectively dealt with in this final rule             Commenters also should consider
                                                                                                           with the addition of a definition of                  whether there could be unintended
                                                  number of exemptions from the total fat
                                                                                                           Paired exempt foods discussed                         consequences to revising or eliminating
                                                  and the saturated fat standards. Seafood
                                                                                                           previously in this preamble.                          the total fat standard. As noted above,
                                                  with no added fat is exempt from the                        One commenter mistakenly noted that
                                                  total fat standard but is still subject to                                                                     commenters should keep in mind that
                                                                                                           alternative milk products allowed in the              the standards for calories, sodium,
                                                  the saturated fat, trans fat, sugar, calorie             reimbursable meals programs may not
                                                  and sodium standards. Exemptions                                                                               saturated fat, and trans fat remain in
                                                                                                           meet these requirements. We wish to                   place and will continue to limit the
                                                  included in the IFR to both the total fat                clarify that total fat, saturated fat and             types of foods that may be sold in
                                                  and saturated fat standards include                      trans fat standards do not apply to                   schools.
                                                  reduced fat cheese and part skim                         beverages.
                                                  mozzarella cheese not included in a                         The Department recognizes that there               Saturated Fat (<10% of Calories)
                                                  combination food item, nuts and seeds                    may be foods that are commonly                           Twenty comments expressed support
                                                  and nut/seed butters not included in a                   enjoyed by students and are generally                 for the IFR competitive food restriction
                                                  combination food item and products                       healthy, but do not currently meet the                on saturated fat. A school district
                                                  that consist of only dried fruit with nuts               competitive food standards due to the                 recommended consistency with NSLP/
                                                  and/or seeds with no added nutritive                     total fat content. Specifically, we are               SBP by only calculating saturated fat
                                                  sweeteners or fat. Such exempt products                  aware that some legume-based spreads/                 and total calories.
                                                  are still subject to other competitive                   dips may offer significant nutritional                   Twenty-five commenters were
                                                  food nutrient standards such as the                      benefits, but may not be able to meet                 opposed to the IFR restriction on
                                                  trans fat, sugar, calorie and sodium                     total fat standards due to the inherent               saturated fat, arguing in favor of either
                                                  standards.                                               fat content of key ingredients in                     making the restriction less stringent or
                                                  Total Fat                                                traditional legume based spreads or                   eliminating the standard entirely. A
                                                                                                           dips, such as hummus. Another                         school professional association and
                                                     Fifteen commenters, including a                       common and generally healthy snack                    individual commenters argued that the
                                                  school professional association and                      food is guacamole. Although avocado is                standard is too restrictive and will
                                                  several individuals, expressed support                   currently exempt from the total fat                   exclude grilled cheese, chicken tenders,
                                                  for the IFR competitive food restriction                 standard because it is a fruit, when                  hot dogs, pizza, and healthy option
                                                  on total fat. No comments were received                  other non-fruit or vegetable ingredients              entrées.
                                                  to make this standard more stringent.                    are added to make a dip, the exemption                   Forty-five comments addressed the
                                                  However, about 30 comments opposed                       is lost and the total fat standard is                 IFR exemptions from the saturated fat
                                                  the IFR restriction on total fat, arguing                exceeded. Other common and generally                  limit. Most of the comments requested
                                                  in favor of either making the restriction                healthy foods that may benefit from                   saturated fat exemptions for the same
                                                  less stringent or eliminating the                        removal of the total fat standard include             products for which they requested total
                                                  standard entirely. Two trade                             snack bars and salads with dressing.                  fat exemptions discussed above. Three
                                                  associations asserted that the total fat                    Because the DGAs are based on the                  trade associations and a school district
                                                  limit is inconsistent with the NSLP/SBP                  latest scientific research and do not                 favored extending the saturated fat
                                                  standards, which limit saturated fat and                 have a key recommendation for total fat               exemption to all cheese that meets the
                                                  trans fat but not total fat. These                       and to address commenter requests for                 calorie limits.
                                                  commenters suggested that limitations                    consistency between standards for                        Additional comments specifically
                                                  on calories, saturated fat, and trans fat                competitive foods sold in schools and                 addressed exemptions from the
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                                                  in competitive food standards will                       the NSLP/SBP, the Department has                      saturated fat limit. A professional
                                                  ensure that the foods are low in total fat.              determined that further comment                       association and several individual
                                                  Similarly, a school district also                        should be accepted on the total fat                   commenters suggested that the saturated
                                                  recommended removing the total fat                       standard. In particular, comments are                 fat standard should exclude eggs or
                                                  limit, asserting that such a limit is                    requested on whether the standard for                 cheese packaged for individual sale and
                                                  inconsistent with the NSLP/SBP                           total fat should be eliminated given that             for non-fried vegetables and legumes.
                                                  requirements and will place an undue                     there will continue to be standards in                   Seven comment letters included other
                                                  burden on menu planners.                                 place for calories, sodium, saturated fat,            comments relating to the IFR saturated


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                                                                       Federal Register / Vol. 81, No. 146 / Friday, July 29, 2016 / Rules and Regulations                                           50141

                                                  fat limit. Two trade associations and a                  E, Vitamin D, iron, zinc, and                         some commenters, particularly since it
                                                  food manufacturer requested that FNS                     magnesium. While eggs are high in fat,                is not possible to limit the number of
                                                  clarify a conflict in the IFR. These                     the DGA recommends increased                          competitive food items that may be
                                                  commenters stated that the ‘‘Summary                     consumption of nutrient dense foods                   purchased. We appreciate that separate
                                                  of Major Provisions’’ in the preamble                    and includes eggs in a healthy eating                 calorie limits by grade levels for snacks
                                                  states that competitive foods must                       pattern. Evidence suggests that one egg               would align with existing voluntary
                                                  contain ‘‘no more than 10 percent’’ of                   a day does not increase a person’s risk               standards that many schools have
                                                  total calories from saturated fat, but                   for high cholesterol or cardiovascular                adopted, and would be more tailored to
                                                  § 210.11(f)(1)(ii) states that the saturated             diseases. In addition, some previous                  the nutritional needs of children of
                                                  fat content of a competitive food must                   State agency standards as well as the                 different ages. However, separate calorie
                                                  be ‘‘less than 10 percent’’ of total                     previous standards implemented by the                 limits for different grade levels would
                                                  calories. The Department wishes to                       Alliance for a Healthier Generation did               also add complexity for local program
                                                  clarify that the requirement as included                 allow eggs for the reasons cited above.               operators with schools of varying grade
                                                  in the regulatory provision at                              Therefore, in response to comments,                levels. State agencies or school districts
                                                  § 210.11(f)(1)(ii) that the saturated fat                the nutrient profile of eggs mentioned                could choose to implement varying
                                                  content of a competitive food must be                    above and operator requests to allow                  calorie limits based on grades, provided
                                                  less than 10 percent of total calories is                this nutrient dense and low cost option,              the maximum level does not exceed the
                                                  correct.                                                 this final rule is amended to add an                  limit in this final rule. Please note that
                                                     The Department does not agree that                    exemption from the total fat and                      the calorie limit for entrée items would
                                                  all cheese should be exempt from the                     saturated fat standards for whole eggs                apply to all entrées that do not meet the
                                                  total fat and saturated fat standards                    with no added fat. This exemption                     exemption for NSLP/SBP entrée items.
                                                  because the total fat standard included                  appears in § 210.11(f)(iv).                              The Department wishes to point out
                                                  in the IFR is identical to the                                                                                 that great strides have been made in the
                                                  recommended IOM standard for total                       Calorie and Sodium Standards for                      availability of competitive foods that
                                                  fat, and the saturated fat standard is                   Competitive Foods                                     meet the standards. Numerous products
                                                  consistent with the DGA                                  Calories                                              have been reformulated and/or
                                                  recommendations.                                                                                               repackaged to ensure that the products
                                                                                                             Some commenters supported the IFR                   meet the competitive foods standards
                                                  Trans Fat (0g as Stated on the Label)                    competitive food calorie limits. In                   and those products have been made
                                                     Twenty comments addressed the IFR                     particular, a health care association                 available to schools for sale to students.
                                                  trans fat restriction. Several                           urged USDA not to grant requests to                   In addition, many changes have been
                                                  commenters, including a school                           increase the IFR calorie limits because               made to the a la carte offerings available
                                                  professional association and some                        doing so would increase the likelihood                in the cafeteria and these changes are
                                                  individual commenters who supported                      that students would choose and                        contributing greatly to the overall
                                                  the total fat and saturated fat limits, also             consume more than the recommended                     healthy environment that is so
                                                  expressed support for the IFR trans fat                  number of calories, which this                        important in our schools.
                                                  limit. A school district also expressed                  commenter asserted would undermine
                                                  support for the IFR limitation of zero                   USDA’s efforts to address the childhood               Sodium
                                                  grams of trans fat in competitive foods.                 obesity epidemic. A food manufacturer                    Under the IFR at § 210.11(i), snack
                                                  To reduce confusion among school food                    urged replacing the sugar and fats                    items and side dishes sold à la carte
                                                  service workers and State auditors, a                    nutrition standards with only the calorie             could contain no more than 200 calories
                                                  trade association and a food                             limit.                                                and 230 mg of sodium per portion as
                                                  manufacturer recommended that the                          Many commenters expressed                           served, including the calories and
                                                  phrasing of the trans-fat provision for                  opposition to the calorie limits for                  sodium in any accompaniments, and
                                                  competitive foods should be consistent                   competitive foods. Commenters said the                must meet all other nutrient standards
                                                  with the provision in the NSLP/SBP                       proposed limits were too stringent and                for non-entrée items. The IFR stipulated
                                                  requirements, which does not apply to                    would limit student access to many food               that as of July 1, 2016, snack items and
                                                  naturally occurring trans fats present in                products, particularly a la carte foods               side dishes must have not more than
                                                  meat and dairy products. While trans fat                 sold during the meal service. Some                    200 calories and 200 mg of sodium per
                                                  content is normally indicated on the                     commenters provided specific                          item as packaged or served. Under the
                                                  label, the Department will provide                       suggestions for alternative calorie limits            IFR at § 210.11(j), entrée items sold à la
                                                  additional guidance as necessary on this                 for snacks, ranging from 240 to 300                   carte could contain no more than 350
                                                  issue through technical assistance                       calories, and for entrées, ranging from              calories and 480 mg sodium per portion
                                                  resources.                                               400 to 500 calories.                                  as served, including any
                                                                                                             Fifteen commenters addressed age                    accompaniments, and meet all other
                                                  Exemption for Eggs With No Added Fat                     and grade groupings, several suggesting               nutrient standards.
                                                     The competitive food standards in the                 separate calorie limits by grade, similar                Several comments, including one
                                                  IFR provided that, in order to qualify as                to the structure of the school meal                   from a health care association and two
                                                  an allowable competitive food, no more                   patterns, reasoning that children have                from individuals, agreed with the IFR
                                                  than 35 percent of calories may be                       different calorie needs as they grow.                 sodium provisions. The health care
                                                  contributed by total fat, and less than 10                 This final rule retains the calorie                 association argued that although some
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                                                  percent of a food’s calories may come                    limits for snacks/side dishes (200                    commenters urge USDA to create
                                                  from saturated fat. Eggs do exceed these                 calories per item as packaged or served),             ‘‘consistent’’ sodium standards for the
                                                  fat standards. However, similar to nut                   and entrée items (350 calories per item              NSLP/SBP and competitive foods
                                                  butters, reduced-fat cheese, and seafood,                as packaged or served), which are                     standards, the sodium limits for the
                                                  eggs exceed the competitive foods fat                    consistent with IOM recommendations                   school meals program apply to an entire
                                                  standards and are nutrient dense. Eggs                   and some voluntary standards. The                     meal, while the sodium limits for
                                                  are high in protein and contain essential                Department does not agree that higher                 competitive foods only apply to one
                                                  nutrients including, B vitamins, Vitamin                 limits are appropriate, as suggested by               component of a meal—a single entrée,


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                                                  50142                Federal Register / Vol. 81, No. 146 / Friday, July 29, 2016 / Rules and Regulations

                                                  side dish, or snack. Therefore, this                     The sodium standard of 230 mg for                     sugar, so a sugar limit based on weight
                                                  commenter reasoned that the sodium                       snacks and side dishes expired as                     is preferable.
                                                  limits for competitive food items should                 scheduled and the 200 mg standard is                     Two comments, one received from an
                                                  be lower than those for a reimbursable                   implemented as of July 1, 2016. In                    advocacy organization and another from
                                                  meal. An individual commenter                            addition, the entrée limit of 480 mg per             an individual commenter, favored a
                                                  acknowledged that sodium limits will                     item as packaged and served will                      sugar limit as a percent of calories
                                                  alter the tastes of many foods, but                      remain in place. The Department wishes                arguing that such an alternative would
                                                  suggested that there are many other                      to point out that any entrées served in              be more protective. The individual
                                                  spices, herbs, and other ways to                         school meals will be covered under the                asserted that there are many foods that
                                                  enhance the flavors of foods without                     NSLP/SBP entrée item exemption in                    would be disallowed were the standard
                                                  increasing the risk of hypertension.                     § 210.11(c)(3)(i).                                    35 percent sugar by calories, but will be
                                                     Several commenters recommended                                                                              allowed because the sugar limit is a
                                                  that the sodium reductions should                        Total Sugars in Competitive Foods                     percentage of calories by weight.
                                                  continue to be phased in gradually to                       The IFR at § 210.11(h)(1) provided                    The Department acknowledges that
                                                  allow taste preferences and                              that not more than 35 percent of the                  this standard allows more products to
                                                  manufacturers additional time to adjust.                 weight per item as packaged and served                qualify to be sold as a competitive food
                                                  Some commenters provided suggestions                     could be derived from total sugars. In                in schools but wishes to point out that
                                                  for higher sodium limits, ranging from                   addition, § 210.11(h)(2) provided the                 the portion sizes of these and all foods
                                                  230 mg to 360 mg for snacks and 550 mg                   following exemptions to the total sugar               would be limited by the calorie and fat
                                                  to 650 mg for entrées. One commenter,                   standard:                                             standards. State agencies and school
                                                  a manufacturer, wanted USDA to add an                       • Dried whole fruits or vegetables;                districts could choose to implement a
                                                  exemption to the sodium limit for                        dried whole fruit or vegetable pieces;                sugar standard based on calories,
                                                  natural reduced fat cheese and reduced                   and dehydrated fruits or vegetables with              provided that it is at least as restrictive
                                                  fat, reduced sodium pasteurized                          no added nutritive sweeteners;                        as the regulatory standard (i.e., no
                                                  processed cheese.                                           • Products that consist of only dried              allowable product under the calorie
                                                     The Department’s standards for                        fruit with nuts and/or seeds with no                  measure could exceed 35 percent sugar
                                                  sodium were based on the IOM                             added nutritive sweeteners or fat; and                by weight).
                                                  recommendations. The proposed ‘‘per                         • Dried fruit with nutritive                          Most commenters supported the
                                                  portion as served’’ standards for                        sweeteners required for processing and/               exemptions to the total sugar
                                                  competitive food were considered in the                  or palatability purposes. (At this time,              requirement as well as the provision
                                                  context of the DGAs and of the overall                   this applies to dried cranberries, tart               allowing an exemption for dried fruit
                                                  sodium limits for school meals, the first                cherries and dried blueberries only.)                 with nutritive sweeteners required for
                                                  of which took effect in School Year                         Most commenters generally supported                processing and/or palatability purposes.
                                                  2014–15, the same school year these                      the application of the total sugars by                (At this time, this applies to dried
                                                  competitive food standards were                          weight standard. Many commenters                      cranberries, tart cherries and blueberries
                                                  implemented. USDA acknowledges that                      stated that this standard provides                    only.) A school district requested
                                                  sodium reduction is an issue that                        flexibility and would allow the sale of               guidance listing specific dried fruits that
                                                  impacts the broader marketplace, not                     more products that are favorites among                require nutritive sweeteners and urged
                                                  just schools, and understands that                       students.                                             that this list be maintained as guidance
                                                  sodium reduction is a process that will                     A trade association expressed the                  rather than as part of the rule so that
                                                  take time.                                               opinion that a restriction on sugar is not            USDA has flexibility to modify the list
                                                     In recognition of the fact that there                 a necessary component of the                          as warranted without requiring
                                                  were existing voluntary standards for                    competitive food standards because                    rulemaking. A trade association
                                                  competitive food that had the higher                     calorie limits will prevent excess sugar              commended USDA for agreeing to issue
                                                  sodium limit of 230 mg for snacks/side                   consumption. A State department of                    future guidance on determining which
                                                  dishes, which meant there were existing                  education and an individual suggested                 dried fruits with added nutritive
                                                  products that had been formulated to                     expressing the sugar limit in grams                   sweeteners qualify for the exemption.
                                                  meet the higher standard available to                    rather than percentages. Several                      The portion sizes of these dried fruits
                                                  schools, the IFR set the initial limit for               commenters indicated that sugar limits                would be limited by the calorie
                                                  sodium for snacks and side dishes at                     would force manufacturers to produce                  standards.
                                                  230 mg per item as packaged or served,                   foods which are actually less healthy in                 A few commenters requested that
                                                  for the first two years of implementation                order to meet that standard. Another                  processed fruit and vegetable snacks
                                                  of these standards. The IFR provided                     food manufacturer expressed support                   (e.g., fruit strips, fruit leathers or fruit
                                                  that, as of July 1, 2016, the sodium limit               for a sugar restriction based on percent              drops) be included under the exemption
                                                  for snacks and side dishes shall be                      calories by weight, although stating that             for dried fruit, as many are processed
                                                  reduced to 200 mg per item as packaged                   it did not believe a total sugar limit is             with concentrated fruit puree. The
                                                  or served.                                               warranted. A trade association and a                  Department, however, does not agree
                                                     It is evident that many manufacturers                 food manufacturer asserted that the                   that processed fruit and vegetable
                                                  have developed new products or                           sugar criterion of 35 percent by weight               snacks should be included under either
                                                  reformulated existing products to meet                   is in line with the Alliance for a                    dried fruit/vegetable exemption. These
                                                  the July 1, 2016, 200 mg standard. The                   Healthier Generation guidelines, which                snack type products are not whole dried
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                                                  Department believes that the phased in                   was the basis of many products                        fruit pieces and the concentrated fruit
                                                  approach taken in the IFR did work to                    specially formulated for schools. The                 puree or juice concentrate used to make
                                                  ensure product availability for schools                  trade association added that for foods                these products is often the primary
                                                  for initial implementation and provided                  that naturally contain fat and sugar,                 ingredient. These products could still
                                                  ample time for manufacturers to adjust                   such as dairy products, making lower fat              qualify without the exemption as a
                                                  to meet the lower limit. Therefore, this                 versions of these products reduces the                competitive food if they meet all of the
                                                  final rule does not change the sodium                    percentage of calories from fat, which                standards, including having a fruit or
                                                  requirement for snacks and side dishes.                  increases the percentage of calories from             vegetable as the first ingredient.


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                                                                       Federal Register / Vol. 81, No. 146 / Friday, July 29, 2016 / Rules and Regulations                                       50143

                                                     The 2015–2020 DGA contain specific                    when a determination is made to                       inconsistent with the competitive food
                                                  recommendations on limiting added                        include any additional dried fruits with              standards will undermine the IFR and
                                                  sugar. This recommendation specifies                     added nutritive sweeteners for                        efforts of parents to provide healthy
                                                  that no more than 10 percent of calories                 processing and/or palatability to qualify             food options to children. This
                                                  should come from added sugars. The                       for this exemption.                                   commenter asserted that although the
                                                  competitive food standards address                                                                             exemption for a la carte NLSP/SBP
                                                                                                           Exemptions for Some or All of the
                                                  sugar content in the context of the                                                                            entrée items only exists on the day and
                                                                                                           Nutrition Standards for Menu Items
                                                  percentage of sugar by weight of the                                                                           day after it is served as part of a
                                                                                                           Provided as Part of the NSLP/SBP
                                                  product sold. The standards do not                                                                             reimbursable meal, many schools—
                                                  include a focus on added sugars, or                         The IFR exempts NSLP/SBP entrée                   particularly high schools that offer
                                                  added sugars representing a particular                   items from the competitive food                       multiple meals each day—may offer
                                                  percentage value compared to calories.                   standards when served as a competitive                popular items like pizza, breaded
                                                  The rationale for limiting sugar by                      food on the day of service or the day                 chicken nuggets, and burgers every day
                                                  weight in the IFR was that a sugar by                    after service in the reimbursable lunch               or nearly every day.
                                                  weight standard was included in a                        or breakfast program. Six commenters                     One advocacy organization
                                                  number of voluntary standards reviewed                   expressed support for this approach                   recognized the importance of
                                                  during the development of the proposed                   regarding NSLP/SBP menu items sold as                 consistency between foods served in
                                                  rule, and, generally, this standard was                  competitive foods. Most of these                      meals and a la carte and argued that
                                                  supported by commenters as providing                     commenters, including advocacy                        there can be consistency without
                                                  the most flexibility for program                         organizations and a health care                       exempting a significant number of a la
                                                  operators. The Department                                association, urged USDA not to grant                  carte items from competitive food
                                                  acknowledged in both the proposed rule                   requests to expand the exemption for                  standards. This commenter stated that if
                                                  and IFR that a sugar standard based on                   NSLP/SBP items sold a la carte to, for                individual items meet the competitive
                                                  added sugars is preferable but that such                 example, include side dishes. Some of                 food standards, they should have no
                                                  a standard would be very difficult for                   these commenters stated that expanding                problem fitting into healthful NSLP/SBP
                                                  local program operators to implement                     the exemption would undermine or                      menus, which would allow for
                                                  and for State agencies to monitor,                       weaken the competitive food standards.                consistency and flexibility, while also
                                                  because the current Nutrition Facts label                One advocacy organization expressed                   safeguarding children’s health.
                                                                                                           support that the IFR will require NSLP/                  One hundred commenters suggested
                                                  does not differentiate between naturally
                                                                                                           SBP side dishes sold a la carte to meet               that the competitive food standards
                                                  occurring and added sugars. The
                                                                                                           the competitive food standards. Another               should exempt NSLP/SBP entrée items
                                                  Department has consistently indicated
                                                                                                           advocacy organization stated that the                 sold a la carte regardless of the day on
                                                  that the sugar standard included in this
                                                                                                           approach taken in the IFR will allow for              which they are served as part of the
                                                  rule will be reconsidered if the
                                                                                                           reasonable flexibility for the school food            reimbursable meal. Many of those
                                                  Nutrition Label is updated to reflect
                                                                                                           service while also addressing concerns                commenters argued that once an item is
                                                  added sugars. On May 27, 2016, the
                                                                                                           regarding the frequency with which                    served that meets reimbursable meal
                                                  FDA published a final regulation which
                                                                                                           particular food items are available.                  pattern guidelines, it should be allowed
                                                  included a requirement that added                           Fifteen comments recommended that                  to be sold as a competitive food without
                                                  sugars in foods be included on the                       NSLP/SBP entrées should not receive an               frequency restrictions. Some stated that
                                                  Nutrition Facts Label (81 FR 34000).The                  exemption from the competitive food                   such an exemption would ease menu
                                                  new labeling requirements will be fully                  standards at any time. Some                           planning and operational issues as well
                                                  implemented by summer 2019. Because                      commenters argued that reimbursable                   as reduce confusion. These comments
                                                  of the implementation period of the                      meals are designed to provide a variety               were primarily made by trade
                                                  labeling rule, FNS is maintaining in this                of foods and beverages that, over the                 associations and food industry
                                                  final rule the sugar standard that was                   course of a week, create a balance of all             commenters as well as some school food
                                                  put forth in the interim final rule. The                 nutrients, while limiting calories, fats              service organizations.
                                                  Department will monitor                                  and sodium, and this balance can be                      Closely associated with the issue of
                                                  implementation of the new labeling                       disrupted when individual foods may                   exempting NSLP and SBP entrées on the
                                                  requirements and, in the future,                         be chosen at the expense of the whole                 day served and the day after served in
                                                  anticipates updates to program                           meal. Specifically, a health care                     the reimbursable meal is the lack of an
                                                  regulations and guidance regarding the                   association commented that because                    exemption for side dishes served in the
                                                  sugar standard, particularly considering                 schools are allowed to balance the                    reimbursable meals. Commenters were
                                                  how to set standards for added sugars in                 nutrition components of reimbursable                  also split on whether or not such food
                                                  competitive foods sold to students on                    meals over a week, foods that may                     items should enjoy an exemption from
                                                  the school campus during the school                      exceed the limits for fat, sodium, and                the competitive food standards. Eighty
                                                  day.                                                     calories can be included in a                         commenters urged that NSLP/SBP side
                                                     Therefore, this final rule continues to               reimbursable meal when balanced over                  items sold a la carte should be exempt
                                                  require in § 210.11(h)(1), that the total                the week with healthier sides. For this               from competitive food standards. Many
                                                  sugar content of a competitive food                      reason, an advocacy organization stated               of the arguments made to support this
                                                  must be not more than 35 percent of                      that the exemption for a la carte NSLP/               view were the same as those discussed
                                                  weight per item as packaged or served                    SBP entrées from the competitive food                above related to the suggestion that all
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                                                  and retains the exemption included in                    standards will allow children to                      NSLP/SBP entrée items should be
                                                  § 210.11(h)(2) to the total sugar content                continue to purchase less healthy entrée             exempt from all competitive food
                                                  standards for dried fruit with added                     items a la carte instead of nutritious                standards regardless of day served.
                                                  nutritive sweeteners that are required                   snack foods or more balanced                          Other commenters indicated that side
                                                  for processing and/or palatability                       reimbursable meals.                                   items should not be exempt from the
                                                  purposes (currently dried cranberries,                      Several advocacy organizations and a               competitive food standards.
                                                  tart cherries and blueberries). USDA                     professional association argued that                     USDA understands the concerns of
                                                  will issue any necessary future guidance                 allowing the sale of any foods that are               commenters on both sides of this issue.


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                                                  50144                Federal Register / Vol. 81, No. 146 / Friday, July 29, 2016 / Rules and Regulations

                                                  Given the circumstances surrounding                      resources including guidance materials                water with no added sweeteners are
                                                  NSLP and SBP meal planning as well as                    and the Competitive Foods Calculator                  allowed in specified maximum
                                                  the increase in healthful entrées being                 and Navigator, which provide a way to                 container sizes, which varied by grade
                                                  served, it is important to maintain some                 evaluate individual foods and beverages               level. The rule also allows additional
                                                  flexibility when it comes to NSLP and                    as well as a listing of Smart Snacks                  beverages for high school students in
                                                  SBP entrées. However, there is a                        allowable foods and beverages,                        recognition of the wide range of
                                                  distinction to be made between the meal                  respectively. These items are available               beverages available to high school
                                                  patterns for reimbursable meals and the                  at www.healthiergeneration.org.                       students in the broader marketplace and
                                                  competitive food standards. The NSLP                                                                           the increased independence such
                                                                                                           Accompaniments
                                                  and SBP offer meals over the course of                                                                         students have, relative to younger
                                                  the school week and less nutritious                        The IFR at § 210.11(n) limited the use              students, in making consumer choices.
                                                  selections may be balanced out with                      of accompaniments to competitive food,
                                                                                                           such as cream cheese, jelly, butter, salad            General Comments on Beverage
                                                  healthier items over the course of the
                                                                                                           dressing, etc., by requiring that all                 Requirements
                                                  week. Competitive food standards are
                                                  based on the nutrients that are provided                 accompaniments be included in the                        Ten commenters expressed general
                                                  by individual food items that are sold to                nutrient profile as part of the food item             support for the beverage standards
                                                  students on the school campus during                     served. Two commenters supported                      included in the IFR. Sixty-five
                                                  the school day. In addition, it is                       requiring accompaniments to be                        commenters generally opposed the ICR
                                                  important to note that it appears that                   included in the nutrient profile as part              beverage standards and cited a variety of
                                                  many schools have successfully adapted                   of the food item served. A State                      reasons, from wanting to allow all grade
                                                  to this requirement, some by expanding                   department of education commented                     levels to have no-calorie/low calorie
                                                  the number of entrées available to                      that the requirement to include the                   beverages to opposing allowing high
                                                  students on a daily basis and others by                  nutrient content of accompaniments in                 school students to have no-calorie/low
                                                  incorporating side items that meet the                   the nutrient profile of the product is                calorie beverages available to them in
                                                  competitive foods requirements into                      appropriate and reasonable because                    school. A few commenters asserted that
                                                  their reimbursable meal menus.                           condiments can contribute significant                 milk is produced in 8 ounce and 16
                                                     Therefore, the exemption for NSLP/                    calories, sugar, fat and/or sodium. A                 ounce containers and that requiring a
                                                  SBP entrée items only is retained. Side                 school district expressed support for the             limit of 12 ounce size milk for middle
                                                  dishes sold à la carte would be required                IFR requirements relating to                          school and high school students may be
                                                  to meet all applicable competitive food                  accompaniments not requiring pre-                     problematic. While some commenters
                                                  standards. The exemption for the entrée                 portioning, but requiring that they be                recommended larger portion sizes for all
                                                  items is available on the day the entrée                included in the nutrient profile of                   beverages, others recommended smaller
                                                  item is served in NSLP/SBP, and the                      competitive foods. Forty-five                         portion sizes, particularly related to
                                                  following school day. Entrée items are                  commenters opposed the requirement                    juice products. Still other commenters
                                                  provided an exemption, but side dishes                   by suggesting that a weekly calorie                   wished to restrict food colorings and
                                                  are not, in an attempt to balance                        range should be applied or that there                 other ingredients in 100 percent juice.
                                                  commenter opposition to any                              should be no consideration of                         Several commenters indicated that no-
                                                  exemptions for NSLP/SBP menu items                       accompaniments.                                       calorie/low calorie beverages should not
                                                  and needed menu planning flexibilities.                    The Department maintains that it is                 be allowed in high school due to the
                                                  The approach adopted in this rule                        important to account for the dietary                  inclusion of non-nutritive sweeteners in
                                                  supports the concept of school meals as                  contribution of accompaniments in                     such beverages. While about 40
                                                  being healthful, and provides flexibility                determining whether a food item may be                commenters supported the removal of
                                                  to program operators in planning à la                   served as a competitive food.                         the time and place restriction on the
                                                  carte sales and handling leftovers. We                   Accompaniments can provide                            sale of other beverages in high school
                                                  anticipate that this approach, along with                substantial sodium, sugar and/or                      lunchrooms during the meal service,
                                                  the recent changes to school meal                        calories to food items sold. Therefore,               several commenters objected to the
                                                  standards will continue to result in                     the requirement that accompaniments                   elimination of the restriction and a few
                                                  healthier menu items in meals than in                    be included in the nutrient profile of                indicated that such beverages should
                                                  the past, including entrées. Exempt                     foods is retained. As provided in the                 not be sold in any location at any time
                                                  entrées that are sold as competitive food               IFR, schools may determine the average                in high schools.
                                                  must be offered in the same or smaller                   serving size of the accompaniments at                    A few commenters suggested that
                                                  portion sizes as the NSLP and SBP.                       the site of service (e.g., school district).          USDA use only two grade groups for the
                                                                                                           This is similar to the approach schools               beverage standards—elementary and
                                                  Guidance on Competitive Foods                                                                                  secondary—to ease implementation.
                                                                                                           have used in conducting nutrient
                                                     Several commenters requested                          analysis of school meals in the past.                 Some commenters stated that it would
                                                  information on a variety of other issues                 Schools have successfully implemented                 be difficult and/or costly to administer
                                                  specific to individual foods. Many of                    this requirement and have not had                     the beverage requirements in combined
                                                  these questions have been clarified in                   difficulty in determining the average                 grade campuses, such as 7–12 or K–12.
                                                  the extensive guidance issued by the                     serving size of accompaniments that are               In response, USDA appreciates that
                                                  Department in policy memoranda and                       used in schools, but the Department will              implementation could be more difficult
                                                  other materials that are available on our                provide further guidance if necessary.                in schools with overlapping grade
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                                                  Web site at http://www.fns.usda.gov/                                                                           groups, but considers it important to
                                                  healthierschoolday/tools-schools-                        Nutrition Standards for Beverages                     maintain in the final rule the three grade
                                                  focusing-smart-snacks. We encourage                         The IFR at § 210.11(m) established                 groupings included in the IFR. These
                                                  interested parties to review these                       standards for allowable beverage types                groupings reflect the IOM
                                                  materials since they are updated                         for elementary, middle and high school                recommendations and appropriately
                                                  frequently. In addition, the Alliance for                students. At all grade levels, water, low             provide additional choices to high
                                                  a Healthier Generation, in partnership                   fat and nonfat milk, and 100 percent                  school students, based on their
                                                  with FNS, has developed extensive                        juice and 100 percent juice diluted with              increased level of independence. USDA


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                                                                       Federal Register / Vol. 81, No. 146 / Friday, July 29, 2016 / Rules and Regulations                                          50145

                                                  has provided guidance on this issue and                  voluntarily instituted policies against               mindful of the level of caffeine in food
                                                  will continue to provide technical                       the sale of caffeinated beverages                     and beverages when selecting products
                                                  assistance and facilitate the sharing of                 marketed as energy drinks to schools.                 for sale in schools, especially when
                                                  best practices as appropriate.                           Two school districts supported                        considering the sale of high caffeine
                                                                                                           caffeinated beverages for high school                 products such as energy drinks. It is also
                                                  Other Beverages for High School
                                                                                                           students.                                             important to note that local jurisdictions
                                                     Most of the comments received on the                     Forty-five commenters opposed the                  have the discretion to further restrict the
                                                  IFR beverage requirements dealt with                     IFR caffeine provisions, generally                    availability of caffeinated beverages
                                                  the standards for other beverages                        because it will allow foods and                       should they wish to do so.
                                                  allowed in high school. A number of                      beverages in high school to contain                     The caffeine provisions as included in
                                                  commenters wanted no-calorie and low-                    caffeine. Those commenters were                       the IFR at § 210.11(k) are not changed.
                                                  calorie beverages to be available in                     primarily concerned about the use of
                                                  elementary and middle schools as well                    caffeinated low-calorie energy drinks                 Non-Nutritive Sweeteners
                                                  as high schools, while others opposed                    that contain unregulated amounts of                      The IFR did not explicitly address the
                                                  these beverages at any grade level.                      caffeine and other additives.                         issue of non-nutritive sweeteners;
                                                  Several commenters stated that although                     An advocacy organization cited                     however, the rule allowed calorie-free
                                                  schools may impose more stringent                        warnings from the American Academy                    and low-calorie beverages in high
                                                  standards, schools may choose to sell                    of Pediatrics and added that aggressive               schools, which would implicitly allow
                                                  diet beverages because the sale of such                  marketing of caffeinated products is                  beverages including non-nutritive
                                                  drinks are profit making. Other                          designed to appeal to youth and there is              sweeteners.
                                                  commenters indicated that if schools are                 a lack of information on caffeine content                Ten commenters addressed the use of
                                                  not allowed to sell no-calorie/low                       on food labels. Several commenters                    non-nutritive sweeteners in food
                                                  calorie beverages in high school                         opposed allowing the sale of caffeinated              products. Some commenters opposed
                                                  students will purchase them elsewhere                    drinks in high schools, particularly                  allowing artificially sweetened
                                                  and bring them to school.                                drinks with high levels of caffeine and               beverages. For example, some
                                                     USDA appreciates the input provided                   no nutritive value.                                   commenters opposed the sale of diet
                                                  by commenters. The Department                               USDA is concerned, as are some                     sodas, whereas others stated that there
                                                  maintains that, given the beverages                      commenters, that some foods and                       is little evidence regarding the
                                                  available in the broader marketplace                     beverages with very high levels of                    advisability of intake of sugar-
                                                  and the independence that high school                    caffeine may not be appropriate to be                 sweetened beverages versus intake of
                                                  students enjoy, low calorie/no-calorie                   sold in schools, even at the high school              non-nutritive sweeteners in beverages.
                                                  beverages may be sold in high schools.                   level. The FDA has not set a daily                    In contrast, some commenters supported
                                                  However, we do not agree that such                       caffeine limit for children, but the                  the use of non-nutritive sweeteners.
                                                  beverages should be available to                         American Academy of Pediatrics                        USDA appreciates commenter input but
                                                  elementary and middle school students                    discourages the consumption of caffeine               is not explicitly addressing the use of
                                                  in school. No changes are made to this                   and other stimulants by children and                  non-nutritive sweeteners in the
                                                  standard.                                                adolescents. However, the health effects              regulatory text of this final rule. Local
                                                                                                           of caffeine are currently being                       program operators can decide whether
                                                  Caffeine                                                 considered by the FDA and the IOM.
                                                    The IFR at § 210.11(l) required that                                                                         to offer food and/or beverage items for
                                                                                                           FDA did announce that it will                         sale that include non-nutritive
                                                  foods and beverages available in                         investigate the safety of caffeine in food
                                                  elementary and middle schools to be                                                                            sweeteners.
                                                                                                           products, particularly its effects on
                                                  caffeine free, with the exception of trace               children and adolescents. The FDA                     Other Requirements
                                                  amounts of naturally occurring caffeine                  announcement cited a proliferation of
                                                  substances. This is consistent with IOM                                                                        Fundraisers
                                                                                                           products with caffeine that are being
                                                  recommendations. The IFR did,                            aggressively marketed to children,                      The IFR at § 210.11(b)(4) requires that
                                                  however, permit caffeine for high school                 including ‘‘energy drinks.’’ FDA,                     food and beverage items sold during the
                                                  students.                                                working with the IOM, convened a                      school day meet the nutrition standards
                                                    Four commenters agreed with the IFR                    public workshop on August 5–6, 2013,                  for competitive food but allows for
                                                  caffeine provisions. A food industry                     to review existing science on safe levels             special exemptions for the purpose of
                                                  commenter expressed support for                          of caffeine consumption and the                       conducting infrequent school-sponsored
                                                  limited beverage choices for young                       potential consequences to children of                 fundraisers, as specified in the HHFKA.
                                                  children but allowing a broader range of                 caffeinated products in the food supply.              The provision included in the IFR was
                                                  products, including those containing                     The workshop did not result in any                    that exempt fundraiser frequency would
                                                  typical amounts of caffeine, in high                     recommendations but a report was                      be determined by the State agency
                                                  schools, given the increased                             produced and may be found at http://                  during such periods that schools are in
                                                  independence of high school students.                    iom.nationalacademies.org/Reports/                    session. The IFR also required that no
                                                  A trade association agreed that high                     2014/Caffeine-in-Food-and-Dietary-                    specially exempted fundraiser foods or
                                                  school students should have access to                    Supplements-Examining-Safety.aspx).                   beverages may be sold in competition
                                                  beverages that contain caffeine and                      USDA will continue to monitor efforts                 with school meals in the food service
                                                  asserted that in 1987 FDA found no                       by FDA to identify standards regarding                area during the meal service.
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                                                  evidence to show that the use of caffeine                the consumption of caffeine by high                     Ten commenters indicated that USDA
                                                  in carbonated beverages would render                     school aged children.                                 should establish the number and type of
                                                  such beverages injurious to health. This                    Therefore, given the lack of                       fundraisers that are exempt from the
                                                  commenter asserted that its members                      authoritative recommendations at this                 competitive food standards to ensure
                                                  provide a wide array of low- and no-                     time, this rule will not prohibit caffeine            consistency among States. Other
                                                  calorie beverages to high schools, some                  for high school students. However,                    commenters recommended that the
                                                  of which contain modest amounts of                       USDA acknowledges commenters’                         Department set parameters for the
                                                  caffeine, but member companies have                      concerns and encourages schools to be                 minimum and maximum numbers of


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                                                  50146                Federal Register / Vol. 81, No. 146 / Friday, July 29, 2016 / Rules and Regulations

                                                  exempt fundraisers based on the size of                  guidance may be found in Policy Memo                    Section 210.10(a)(1) of the final rule
                                                  schools. Thirty comments suggested that                  SP 23–2014(V.3) available on our Web                  continues to require that schools make
                                                  all food fundraisers taking place in                     site at http://www.fns.usda.gov/nslp/                 potable water available and accessible
                                                  schools be required to adhere to the                     policy.                                               without restriction to children at no
                                                  competitive food standards at all times.                    In summary, the exempt fundraiser                  charge in the place where lunches are
                                                  Some commenters indicated that                           provisions contained in § 210.11(b)(4) of             served during the meal service. In
                                                  allowing exempt fundraisers will create                  the IFR are unchanged and the final rule              addition, § 220.8(a)(1) requires that
                                                  confusion among parents, students and                    continues to specify that competitive                 when breakfast is served in the cafeteria,
                                                  staff. A number of commenters noted                      food and beverage items sold during the               schools must make potable water
                                                  that the approval of exempt fundraisers                  school day must meet the nutrition                    available and accessible without
                                                  should be governed by the school                         standards for competitive food, and that              restriction to children at no charge. The
                                                  wellness policies. Thirty commenters                     a special exemption is allowed for the                Department continues to encourage
                                                  indicated that time and place                            sale of food and/or beverages that do not             schools to make potable water available
                                                  restrictions on exempt fundraisers                       meet the competitive food standards for               without restriction at all meal and snack
                                                  should apply not only to the food                        the purpose of conducting an infrequent               services when possible.
                                                  service area during the meal service but                 school-sponsored fundraiser. Such                     Recordkeeping
                                                  to all locations in the school during the                specially exempted fundraisers must not
                                                  meal service and some suggested                          take place more than the frequency                      The IFR at § 210.11(b)(2), outlined the
                                                  placing timeframes on when such                                                                                recordkeeping requirements associated
                                                                                                           specified by the State agency during
                                                  fundraisers may be held (for example:                                                                          with competitive foods. Local
                                                                                                           such periods that schools are in session.
                                                  one hour after the school lunch service                                                                        educational agencies and school food
                                                                                                           Finally, no specially exempted
                                                  is completed).                                                                                                 authorities would be required to
                                                                                                           fundraiser foods or beverages may be
                                                     The final rule retains the                                                                                  maintain records documenting
                                                                                                           sold in competition with school meals
                                                  requirements regarding the                                                                                     compliance with the requirements.
                                                                                                           in the food service area during the meal
                                                  responsibility of the State agency to                                                                          Local educational agencies would be
                                                                                                           service.
                                                  determine the frequency of exempt                                                                              responsible for maintaining records
                                                  fundraisers in schools. In addition, the                 Availability of Water During the Meal                 documenting compliance with the
                                                  rule continues to stipulate that there are               Service                                               competitive food nutrition standards for
                                                  no limits on the sale of food items that                                                                       food sold in areas that are outside of the
                                                                                                              The IFR codified a provision of the                control of the school food service
                                                  meet the competitive food requirements
                                                                                                           HHFKA that requires schools                           operation. Local educational agencies
                                                  (as well as the sale of non-food items)
                                                                                                           participating in the NSLP to make free,               also would be responsible for ensuring
                                                  at school fundraisers. In addition, the
                                                                                                           potable water available to children in                any organization designated as
                                                  Department wishes to remind the public
                                                                                                           the place lunches are served during the               responsible for food service at the
                                                  that the fundraiser standards do not
                                                                                                           meal service. Just over 40 comments                   various venues in the school (other than
                                                  apply to food sold during non-school
                                                                                                           addressed the part of the IFR that                    the school food service) maintains
                                                  hours, weekends and off-campus
                                                                                                           requires schools participating in the                 records documenting compliance with
                                                  fundraising events such as concessions
                                                                                                           NSLP to make free, potable water                      the competitive food nutrition
                                                  during after-school sporting events.
                                                     USDA is confident that State agencies                 available to children in the place                    standards. The school food authority
                                                  possess the necessary knowledge,                         lunches are served during the meal                    would be responsible for maintaining
                                                  understanding and resources to make                      service and in the cafeteria during                   records documenting compliance with
                                                  decisions about what an appropriate                      breakfast meal service.                               the competitive food nutrition standards
                                                  number of exempt fundraisers in                             Many of these commenters, including                for foods sold in meal service areas
                                                  schools should be and that the most                      advocacy organizations, professional                  during meal service periods. Required
                                                  appropriate approach to specifying the                   associations and individual                           records would include, at a minimum,
                                                  standards for exempt fundraisers is to                   commenters, expressed support for the                 receipts, nutrition labels and/or product
                                                  allow State agencies to set the allowed                  potable water requirement. Two                        specifications for the items available for
                                                  frequency of such fundraisers. If a State                advocacy organizations commented that                 sale.
                                                  agency does not specify the exemption                    water has zero calories and is a healthy                About 120 commenters expressed
                                                  frequency, no fundraiser exemptions                      alternative to sugary drinks. These                   concerns about recordkeeping,
                                                  may be granted. It is not USDA’s intent                  commenters stated that making the                     monitoring and compliance. Twenty
                                                  that the competitive food standards                      water free and easily accessible may                  commenters specifically addressed
                                                  apply to fundraisers in which the food                   help combat obesity and promote good                  recordkeeping. Some of those
                                                  sold is clearly not for consumption on                   health. Similarly, one individual                     commenters suggested that
                                                  the school campus during the school                      commenter stated that the free, potable               recordkeeping is costly, unrealistic and/
                                                  day. It is also important to note that                   water requirement will help reduce the                or not necessary. Yet others
                                                  LEAs may implement more restrictive                      purchase of other drinks that are high in             recommended minimizing the
                                                  competitive food standards, including                    added sugars. A few individual                        recordkeeping on non-school groups. A
                                                  those related to the frequency with                      commenters remarked that low-income                   number of commenters representing
                                                  which exempt fundraisers may be held                     students do not have the luxury of                    school food service were concerned that
                                                  in their schools, and may impose further                 bringing or buying water bottles or even              the local educational agency would
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                                                  restrictions on the areas of the schools                 have access to clean running water                    require school food service to be
                                                  and the times during which exempt                        outside of school, and free potable water             responsible for recordkeeping on behalf
                                                  fundraisers may occur in the schools                     is imperative to these students. Two                  of school food service as well as other
                                                  during the school day.                                   individual commenters recommended                     entities/organizations within the local
                                                     In addition, USDA has provided                        that free potable water be available                  educational agency. Additionally, they
                                                  guidance on fundraisers in response to                   during breakfast, lunch, and all break                were concerned that school food service
                                                  a variety of specific questions received                 and recess times regardless of where                  could not affect the requirements
                                                  during implementation and this                           food is being served.                                 throughout the local educational agency


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                                                                       Federal Register / Vol. 81, No. 146 / Friday, July 29, 2016 / Rules and Regulations                                         50147

                                                  since they have no authority over other                  nutrition standards for all foods                     be held accountable for compliance
                                                  school organizations.                                    available on each school campus, and                  issues outside of the control of the SFA.
                                                     The Department appreciates that this                  (b) designate one or more local                          The Department agrees that training
                                                  regulation may have created some new                     educational agency officials or school                will be needed to ensure compliance
                                                  challenges initially, as schools                         officials, to ensure that each school                 with the nutrition standards. As
                                                  implemented the IFR and took steps to                    complies with the local school wellness               mentioned under the discussion of
                                                  improve the school nutrition                             policy. State agencies were advised of                Recordkeeping above, the Department
                                                  environment. Such challenges may be                      the section 204 requirements in FNS                   envisions local educational agency
                                                  ongoing for some schools. However,                       Memorandum, Child Nutrition                           designees, potentially the local school
                                                  maintaining a record that substantiates                  Reauthorization 2010: Local School                    wellness coordinator(s), taking the lead
                                                  that the food items available for sale in                Wellness Policies, issued July 8, 2011                in developing performance or
                                                  the schools meet the standards is                        (SP 42–2011). In addition, the                        compliance standards and training for
                                                  essential to the integrity of the                        Department published a proposed rule                  all local educational personnel tasked
                                                  competitive food standards. To                           titled Local School Wellness Policy                   with selling competitive food on the
                                                  determine whether a food item is an                      Implementation Under the Healthy,                     school campus during the school day.
                                                  allowable competitive food, the local                    Hunger Free Kids Act of 2010 on                       The Department and State agencies will
                                                  educational agency designee(s) must                      February 26, 2014 at 79 FR 10693.                     also offer training to ensure local
                                                  assess the nutritional profile of the food               Comments were submitted by the public                 educational agencies are able to comply
                                                  item. This may be accomplished by                        and those comments are being analyzed                 in the most efficient manner possible.
                                                  evaluating the product Nutrition Facts                   for the development of an upcoming                       The Department published a proposed
                                                  Label and/or using the Alliance for a                    final rule.                                           rule titled Administrative Reviews in the
                                                  Healthier Generation Calculator to do so                    The Department believes, and the                   School Nutrition Programs on May 11,
                                                  and retaining a copy of that evaluation                  experience of many operators confirms,                2015 (80 FR 26846) addressing an
                                                  in the files, retaining receipts for the                                                                       updated administrative review process
                                                                                                           that if the LEA local school wellness
                                                  food items ordered or purchased for                                                                            that includes these new monitoring
                                                                                                           designee(s), school food service, and
                                                  secondary sale at the various venues at                                                                        responsibilities. This rule, together with
                                                                                                           other entities and groups involved with
                                                  the schools, etc. Absent an evaluation of                                                                      administrative review guidance,
                                                                                                           the sale of food on the school campus
                                                  the nutritional profile of the competitive                                                                     provides information regarding the
                                                                                                           during the school day work together to
                                                  foods available for sale at the schools,                                                                       proposed conduct and scope of reviews,
                                                                                                           share information on allowable foods
                                                  the local educational agency has no way                                                                        and the monitoring and records review
                                                                                                           and coordinate recordkeeping
                                                  of knowing whether a food item meets                                                                           that will be conducted with regard to
                                                                                                           responsibilities, the result is the
                                                  the nutrition standards set forth in this                                                                      competitive foods. Currently, USDA is
                                                                                                           successful implementation and
                                                  rule. The recordkeeping requirement                                                                            reviewing the comments received from
                                                                                                           maintenance of a healthy school                       the public on the proposed rule in
                                                  simply requires the local educational
                                                                                                           environment. As always, State agencies                preparation for the development of an
                                                  agency to retain the reviewed
                                                                                                           and the Department will provide                       implementing rule.
                                                  documentation (e.g., the nutrition
                                                                                                           technical assistance to facilitate ongoing               The Department would like to assure
                                                  labels, receipts, and/or product
                                                                                                           implementation of the competitive food                commenters that we see technical
                                                  specifications) in their files.
                                                     Commenters also expressed concern                     nutrition standards.                                  assistance and training as the first
                                                  about the designation of responsibility                     Therefore, there are no changes to the             approach to non-compliance; however,
                                                  for this activity. As stated in the IFR, the             recordkeeping requirements and                        we recognize that egregious, repeated
                                                  Department does not expect the                           § 210.11(b)(2) of the IFR is affirmed.                cases of non-compliance may require a
                                                  responsibility to rest solely with the                   Compliance and Monitoring                             more aggressive approach. In this
                                                  nonprofit school food service. School                                                                          regard, section 303 of the HHFKA
                                                  food service personnel are expected to                     Section 210.18(h)(6) requires State                 amended section 22 of the NSLA (42
                                                  have a clear understanding of the                        agencies to ensure that local educational             U.S.C. 1769c) to provide the Department
                                                  nutrition profile of foods purchased                     agencies comply with the nutrition                    with the authority to impose fines
                                                  using nonprofit school food service                      standards for competitive food and                    against any school or school food
                                                  funds for reimbursable meals, a la carte                 retain documentation demonstrating                    authority repeatedly failing to comply
                                                  offerings, etc. Their authority and                      compliance with the competitive food                  with program regulations. This
                                                  responsibilities are typically limited to                service and standards.                                authority will be addressed in a
                                                  the nonprofit school food service. Local                   As indicated above, about 120                       proposed rule dealing with a number of
                                                  educational agencies are responsible for                 commenters submitted comments                         integrity issues related to local
                                                  ensuring that all entities involved in                   related to recordkeeping, monitoring                  educational agencies administering the
                                                  food sales within a school understand                    and compliance. A number of                           Child Nutrition Programs which is
                                                  that the local educational agency as a                   commenters, largely school food service               currently under development. Interested
                                                  whole must comply with these                             personnel, expressed concerns about                   parties will have an opportunity to
                                                  requirements.                                            how monitoring would occur for foods                  comment on the proposed integrity rule.
                                                     As stated in the IFR, the Department                  sold by groups outside of the school
                                                  continues to recommend that                              food service. Some commenters                         Special Situations/Applicability
                                                  cooperative duties associated with the                   believed technical assistance would be                   This rule continues to require that all
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                                                  sale of competitive foods be coordinated                 insufficient and raised questions about               local educational agencies and schools
                                                  and facilitated by the local school                      means to effect compliance. Other                     participating in the NSLP and SBP meet
                                                  wellness policy designee(s). Section 204                 commenters expressed concerns about                   the nutrition standards for competitive
                                                  of the HHFKA amended the NSLA by                         the need to train and educate non-                    foods sold to students on the school
                                                  adding section 9A (42 U.S.C. 1758b)                      school food service personnel as to how               campus during the school day. Several
                                                  which requires each local educational                    to comply with the regulations. Several               questions have been received regarding
                                                  agency to: (a) Establish a local school                  State agencies, school districts and                  the applicability of these standards to
                                                  wellness policy which includes                           individuals requested that the SFA not                after school programs operated in


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                                                  50148                Federal Register / Vol. 81, No. 146 / Friday, July 29, 2016 / Rules and Regulations

                                                  schools that participate in NSLP/Child                   Related Information                                      The requirements established by this
                                                  and Adult Care Food Program (CACFP).                                                                           final rule will apply to school districts,
                                                                                                           Implementation
                                                  The Department wishes to clarify that                                                                          which meet the definitions of ‘‘small
                                                  such programs are required to comply                        The competitive food provisions                    governmental jurisdiction’’ and other
                                                  with their specified meal patterns. Only                 contained in the IFR were implemented                 establishments that meet the definition
                                                  if food is sold to their program                         by State agencies and local educational               of ‘‘small entity’’ in the Regulatory
                                                  participants outside of their meal                       agencies on July 1, 2014. Changes made                Flexibility Act. The Regulatory
                                                  pattern would the competitive foods                      in this final rule may be implemented                 Flexibility Act analysis is published as
                                                  standards be applicable for 30 minutes                   as specified in the DATES section of this             part of the docket (FNS–2011–0019) on
                                                                                                           preamble. While the total fat standard                www.regulations.gov.
                                                  after the end of the official school day,
                                                                                                           remains in place, additional comments
                                                  consistent with the definition of School                                                                       Regulatory Impact Analysis Summary
                                                                                                           on the interim final total fat standard are
                                                  day specified in § 210.11(a)(5).                                                                                  As required for all rules that have
                                                                                                           being accepted and must be received as
                                                     Forty comments addressed impacts of                   specified in the DATES section of this                been designated as significant by the
                                                  the IFR on culinary training programs.                   preamble. The saturated fat and trans fat             Office of Management and Budget, a
                                                  These commenters urged for complete                      standards are finalized in this rule. This            Regulatory Impact Analysis (RIA) was
                                                  exemption from the competitive food                      final rule removes § 210.11a and its                  developed for this final rule A summary
                                                  standards for foods prepared and sold as                 corresponding Appendix B, which                       is presented below. The full RIA is
                                                  part of culinary education programs. In                  references the sale of foods of minimal               published as part of the docket (FNS–
                                                  contrast, a school district, school food                 nutritional value, since those standards              2011–0019) on www.regulations.gov.
                                                  service staff, and other individual                      were eliminated as of July 1, 2014, the               Need for Action
                                                  commenters urged USDA to apply the                       date that competitive food standards
                                                                                                           were implemented in their place.                        The final rule responds to two
                                                  competitive food standards to foods sold
                                                                                                           Similar changes are made to the                       provisions of the Healthy, Hunger-Free
                                                  to students during the school day by                                                                           Kids Act of 2010. Section 208 of
                                                  culinary arts programs.                                  breakfast program regulations at 7 CFR
                                                                                                           part 220.                                             HHFKA amended Section 10 of the
                                                     The Department addressed the                                                                                Child Nutrition Act of 1966 to require
                                                  applicability of the competitive foods                   Procedural Matters                                    the Secretary to establish science-based
                                                  regulation on culinary arts programs in                  Executive Order 12866 and Executive                   nutrition standards for all foods sold in
                                                  Policy Memo SP 40–2014, published on                     Order 13563                                           schools during the school day. In
                                                  April 22, 2014. That memo recognized                                                                           addition, the amendments made by
                                                  that culinary education programs                            Executive Orders 12866 and 13563                   section 203 of the HHFKA amended
                                                                                                           direct agencies to assess all costs and               section 9(a) of the NSLA (42 U.S.C.
                                                  providing students with technical career
                                                                                                           benefits of available regulatory                      1758(a)) to require that schools
                                                  training operate in some schools
                                                                                                           alternatives and, if regulation is                    participating in the NSLP make potable
                                                  nationwide. Some of those culinary
                                                                                                           necessary, to select regulatory                       water available to children at no charge
                                                  education programs operate food service                  approaches that maximize net benefits
                                                  outlets that sell foods to students,                                                                           in the place where meals are served
                                                                                                           (including potential economic,                        during the meal service. This is a
                                                  faculty, or others in the community,                     environmental, public health and safety
                                                  with a minority of programs doing so                                                                           nondiscretionary requirement of the
                                                                                                           effects, distributive impacts, and                    HHFKA that became effective October 1,
                                                  during the school day. The memo also                     equity). Executive Order 13563                        2010, and was required to be
                                                  clarified that the competitive foods                     emphasizes the importance of                          implemented by August 27, 2013.
                                                  nutrition standards have no impact on                    quantifying both costs and benefits, of
                                                  the culinary education programs’                         reducing costs, of harmonizing rules,                 Response to Comments
                                                  curriculum in schools, nor do they have                  and of promoting flexibility.                           The full Regulatory Impact Analysis
                                                  any impact on foods sold to adults at                       This Final rule has been designated                includes a brief discussion of comments
                                                  any time or to students outside of the                   an ‘‘economically significant regulatory              submitted by school officials, public
                                                  school day. However, to the extent that                  action’’ under section 3(f) of Executive              health organizations, industry
                                                  such programs are selling food to                        Order 12866. Accordingly, the rule has                representatives, parents, students, and
                                                  students on campus during the school                     been reviewed by the Office of                        other interested parties on the costs and
                                                  day, the statutory applicability of the                  Management and Budget.                                benefits of the final rule submitted. The
                                                  Smart Snacks nutrition standards to all                  Regulatory Flexibility Analysis                       analysis also contains a discussion of
                                                  foods sold outside of the School meals                                                                         how USDA modified the final rule in
                                                  programs is clear. Section 12(l)(4)(J) of                  This rule has been reviewed with                    response, and the effect of those
                                                  the NSLA (42 U.S.C. 1760(l)(4)(J),                       regard to the requirements of the                     modifications on the costs and benefits
                                                                                                           Regulatory Flexibility Act of 1980 (5                 of the rule.
                                                  prohibits the Secretary from granting a
                                                                                                           U.S.C.601–612). The rule directly
                                                  waiver that relates to the requirements                                                                        Benefits
                                                                                                           regulates the 54 State education
                                                  of the NSLA, the CNA, or any regulation
                                                                                                           agencies and 3 State Departments of                     The primary purpose of the rule is to
                                                  issued under either statute with regard                  Agriculture that operate the NSLP                     ensure that nutrition standards for
                                                  to the sale of foods sold outside of the                 pursuant to agreements with USDA’s                    competitive foods are consistent with
asabaliauskas on DSK3SPTVN1PROD with RULES




                                                  school meal programs. The nutrition                      Food and Nutrition Service. While State               those used for the NSLP and SBP,
                                                  standards included in the final rule                     agencies are not considered small                     holding competitive foods to standards
                                                  continue to apply to all foods sold to                   entities as State populations exceed the              similar to the rest of foods available to
                                                  students on the school campus during                     50,000 threshold for a small government               students during the school day. These
                                                  the school day, including food prepared                  jurisdiction, many of the service-                    standards, combined with recent
                                                  and/or sold by culinary education                        providing institutions that work with                 improvements in school meals, will
                                                  programs.                                                them to implement the program do meet                 help promote diets that contribute to
                                                                                                           definitions of small entities.                        students’ long-term health and well-


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                                                                       Federal Register / Vol. 81, No. 146 / Friday, July 29, 2016 / Rules and Regulations                                              50149

                                                  being. In addition, these standards                         • Taber, Chriqui, and Chaloupka                      Although nutrition standards for
                                                  continue to support a healthy school                     (2012 7) concluded that California high               foods sold at school alone may not be
                                                  environment and the efforts of parents                   school students consumed fewer                        a determining factor in children’s
                                                  to promote healthy choices for children                  calories, less fat, and less sugar at school          overall diets, they are critical to
                                                  at home and at school.                                   than students in other States. Their                  providing children with healthy food
                                                                                                           analysis ‘‘suggested that California                  options throughout the entire school
                                                     Obesity has become a major public
                                                                                                           students did not compensate for                       day. Thus, these standards will help to
                                                  health concern in the U.S., with one-                    consuming less within school by                       ensure that the school nutrition
                                                  third of U.S. children and adolescents                   consuming more elsewhere’’ (p. 455).                  environment does all that it can to
                                                  now considered overweight or obese                          • In an assessment of the reach and                promote healthy choices, and help to
                                                  (Beydoun and Wang 20112), with                           effectiveness of childhood obesity                    prevent diet-related health problems.
                                                  current childhood obesity rates four                     strategies, Gortmaker et al. 8 project that           Ancillary benefits could derive from the
                                                  times higher in children ages six to 11                  implementing nutrition standards for all              fact that improving the nutritional value
                                                  than they were in the early 1960s (19 vs.                foods and beverages sold in schools                   of competitive foods may reinforce
                                                  4 percent), and three times higher (17                   outside of reimbursable school meals                  school-based nutrition education and
                                                  vs. 5 percent) for adolescents ages 12 to                will prevent an estimated 345,000 cases               promotion efforts and contribute
                                                  19.3 Research focused specifically on                    of childhood obesity in 2025 (p. 1937).               significantly to the overall effectiveness
                                                  the effects of obesity in children                          • Schwartz, Novak, and Fiore,                      of the school nutrition environment in
                                                  indicates that obese children feel they                  (2009 9) determined that healthier                    promoting healthful food and physical
                                                  are less capable, both socially and                      competitive food standards decreased                  activity choices.11
                                                  athletically, less attractive, and less                  student consumption of low nutrition
                                                                                                           items with no compensating increase at                Costs
                                                  worthwhile than their non-obese
                                                  counterparts.4 Further, there are direct                 home.                                                    While there have been numerous
                                                  economic costs due to childhood                             • Researchers at Healthy Eating                    success stories, best practices, and
                                                  obesity: $237.6 million (in 2005 dollars)                Research and Bridging the Gap found                   innovative practices, it is too early to
                                                  in inpatient costs 5 and annual                          that ‘‘[t]he best evidence available                  definitively ascertain the overall impact
                                                                                                           indicates that policies on snack foods                to school revenue. The changes and
                                                  prescription drug, emergency room, and
                                                                                                           and beverages sold in school impact                   technical clarifications in the final rule
                                                  outpatient costs of $14.1 billion.6
                                                                                                           children’s diets and their risk for                   do not change the methodology of the
                                                     Because the factors that contribute                   obesity. Strong policies that prohibit or             cost benefit analysis from the
                                                  both to overall food consumption and to                  restrict the sale of unhealthy                        methodology used in the interim final
                                                  obesity are so complex, it is not possible               competitive foods and drinks in schools               regulatory impact analysis, however the
                                                  to define a level of disease or cost                     are associated with lower proportions of              estimates are updated using the most
                                                  reduction expected to result from                        overweight or obese students, or lower                recent data available to assess the
                                                  implementation of the rule. There is                     rates of increase in student BMI’’                    impacts to revenue and to account for
                                                  some evidence, however, that                             (Healthy Eating Research and Bridging                 the potential variation in
                                                  competitive food standards can improve                   the Gap, 2012, p. 3 10).                              implementation and sustainability
                                                  children’s dietary quality.                                 A comprehensive assessment of the                  experiences across SFAs and schools.
                                                                                                           evidence on the importance of                            The limited information available
                                                    2 Beydoun, M.A. and Y. Wang. 2011. Socio-              competitive food standards conducted                  indicates that many schools have
                                                  demographic disparities in distribution shifts over      by the Pew Health Group concluded                     successfully introduced competitive
                                                  time in various adiposity measures among                 that a national competitive foods policy              food reforms with little or no loss of
                                                  American children and adolescents: What changes
                                                  in prevalence rates could not reveal. International
                                                                                                           would increase student exposure to                    revenue and in a few cases, revenues
                                                  Journal of Pediatric Obesity, 6:21–35. As cited in       healthier foods, decrease exposure to                 from competitive foods increased after
                                                  Food Labeling: Calorie Labeling of Articles of Food      less healthy foods, and would also                    introducing healthier foods. In some of
                                                  in Vending Machines NPRM. 2011. Preliminary              likely improve the mix of foods that                  the schools that showed declines in
                                                  Regulatory Impact Analysis, Docket No. FDA–2011–
                                                  F–0171.
                                                                                                           students purchase and consume at                      competitive food revenues, losses from
                                                    3 Ogden et al. Prevalence of Obesity Among             school. Researchers concluded that                    reduced sales were fully offset by
                                                  Children and Adolescents: United States, Trends          these kinds of changes in food exposure               increases in reimbursable meal revenue.
                                                  1963–1965 Through 2007–2008. CDC–NHCS, NCHS              and consumption at school are                         In other schools, students responded
                                                  Health E-Stat, June 2010. On the web at http://          important influences on the overall
                                                  www.cdc.gov/nchs/data/hestat/obesity_child_07_
                                                                                                                                                                 favorably to the healthier options and
                                                  08/obesity_child_07_08.htm.                              quality of children’s diets.                          competitive food revenue declined little
                                                    4 Riazi, A., S. Shakoor, I. Dundas, C. Eiser, and                                                            or not at all.
                                                                                                             7 Taber, D.R., J.F. Chriqui, and F. J. Chaloupka.
                                                  S.A. McKenzie. 2010. Health-related quality of life                                                               But not all schools that adopted or
                                                  in a clinical sample of obese children and               2012. Differences in Nutrient Intake Associated
                                                                                                           With State Laws Regarding Fat, Sugar, and Caloric
                                                                                                                                                                 piloted competitive food standards fared
                                                  adolescents. Health and Quality of Life Outcomes,
                                                  8:134–139.Samuels & Associates. 2006. Competitive        Content of Competitive Foods. Archives of Pediatric   as well. Some of the same studies and
                                                  Foods. Policy Brief prepared by Samuels &                & Adolescent Medicine, 166:452–458.                   reports that highlight school success
                                                  Associates for The California Endowment and                8 Gortmaker SL, Claire Wang Y, Long MW, Giles
                                                                                                                                                                 stories note that other schools sustained
                                                  Robert Wood Johnson Foundation. Available at:            CM, Ward ZJ, Barrett JL, Kenney EL, Sonneville KR,    some loss after implementing similar
                                                  http://www.healthyeatingactivecommunities.org/           Afzal AS, Resch SC, Cradock AL., Health Affairs,
                                                  downloads/                                               34, no. 11 (2015).                                    standards. While in some cases these
                                                                                                                                                                 were short-term losses, even in the long-
asabaliauskas on DSK3SPTVN1PROD with RULES




                                                    5 Trasande, L., Y. Liu, G. Fryer, and M. Weitzman.       9 Schwartz, M.B., S.A. Novak, and S.S. Fiore.

                                                  2009. Trends: Effects of Childhood Obesity on            2009. The Impact of Removing Snacks of Low
                                                  Hospital Care and Costs, 1999–2005. Health Affairs,      Nutritional Value from Middle Schools. Health           11 Pew Health Group and Robert Wood Johnson
                                                  28:w751-w760.                                            Education & Behavior, 36:999–1011.                    Foundation. 2012. Heath Impact Assessment:
                                                    6 Cawley, J. 2010. The Economics of Childhood            10 Healthy Eating Research and Bridging the Gap.    National Nutrition Standards for Snack and a la
                                                  Obesity. Health Affairs, 29:364–371. As cited in         2012. Influence of Competitive Food and Beverage      Carte Foods and Beverages Sold in Schools.
                                                  Food Labeling: Calorie Labeling of Articles of Food      Policies on Children’s Diets and Childhood Obesity.   Available online: http://www.pewhealth.org/
                                                  in Vending Machines NPRM. 2011. Preliminary              Available at http://www.healthyeatingresearch.org/    uploadedFiles/PHG/Content_Level_Pages/Reports/
                                                  Regulatory Impact Analysis, Docket No. FDA–2011–         images/stories/her_research_briefs/Competitive_       KS%20HIA_FULL%20Report%20062212_
                                                  F–0171.                                                  Foods_Issue_Brief_HER_BTG_7–2012.pdf                  WEB%20FINAL-v2.pdf.



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                                                  50150                Federal Register / Vol. 81, No. 146 / Friday, July 29, 2016 / Rules and Regulations

                                                  term the competitive food revenue lost                   subpart V and related notice (48 FR                   Paperwork Reduction Act
                                                  by those schools was not offset (at least                29115, June 24, 1983), these programs                    In accordance with the Paperwork
                                                  not fully) by revenue gains from the                     are included in the scope of Executive                Reduction Act of 1995 (44 U.S.C. 3501
                                                  reimbursable meal programs.                              Order 12372, which requires                           et seq.), this final rule does not contain
                                                     Our analysis examines the possible                    intergovernmental consultation with                   substantive changes to information
                                                  effects of the rule on school revenues                   State and local officials.                            collection requirements that require
                                                  from competitive foods and the
                                                                                                           Executive Order 13132                                 additional approval by OMB. The
                                                  administrative costs of complying with
                                                                                                                                                                 paperwork requirements for this final
                                                  the rule’s competitive foods provisions.
                                                                                                             Executive Order 13132 requires                      rule were previously approved by the
                                                  The analysis uses available data to
                                                                                                           Federal agencies to consider the impact               Office of Management and Budget
                                                  construct model-based scenarios that
                                                                                                           of their regulatory actions on State and              (OMB) for the interim final rule under
                                                  different schools may experience in
                                                                                                           local governments. Where such actions                 OMB control #0584–0576 and merged
                                                  implementing the rule. While these vary
                                                                                                           have federalism implications, agencies                into #0584–0006.
                                                  in their impact on overall school food
                                                  revenue, each scenario’s estimated                       are directed to provide a statement for
                                                                                                                                                                 E-Government Act Compliance
                                                  impact is relatively small (+0.5 percent                 inclusion in the preamble to the
                                                                                                           regulations describing the agency’s                     The Food and Nutrition Service is
                                                  to ¥1.3 percent). That said, the data                                                                          committed to complying with the E-
                                                  behind the scenarios are insufficient to                 considerations in terms of the three
                                                                                                           categories called for under section                   Government Act of 2002, to promote the
                                                  assess the frequency or probability of                                                                         use of the Internet and other
                                                  schools experiencing the impacts shown                   (6)(b)(2)(B) of Executive Order 13132.
                                                                                                           USDA has considered the impact of this                information technologies to provide
                                                  in each.
                                                                                                           rule on State and local governments and               increased opportunities for citizen
                                                  Unfunded Mandates Reform Act                             has determined that this rule does not                access to Government information and
                                                     Title II of the Unfunded Mandates                     have federalism implications. This rule               services and for other purposes.
                                                  Reform Act of 1995 (UMRA), Public                        does not impose substantial or direct                 Executive Order 13175—Consultation
                                                  Law 104–4, establishes requirements for                  compliance costs on State and local                   and Coordination With Indian Tribal
                                                  Federal agencies to assess the effects of                governments. Therefore, under Section                 Governments
                                                  their regulatory actions on State, local,                6(b) of the Executive Order, a federalism
                                                  and Tribal governments and the private                                                                            Executive Order 13175 requires
                                                                                                           summary impact statement is not
                                                  sector. Under section 202 of the UMRA,                                                                         Federal agencies to consult and
                                                                                                           required.
                                                  the Department generally must prepare                                                                          coordinate with Tribes on a
                                                  a written statement, including a cost/                   Executive Order 12988                                 government-to-government basis on
                                                  benefit analysis, for proposed and final                                                                       policies that have Tribal implications,
                                                                                                              This rule has been reviewed under                  including regulations, legislative
                                                  rules with Federal mandates that may                     Executive Order 12988, Civil Justice
                                                  result in expenditures by State, local, or                                                                     comments or proposed legislation, and
                                                                                                           Reform. This rule is intended to have                 other policy statements or actions that
                                                  Tribal governments, in the aggregate, or
                                                                                                           preemptive effect with respect to any                 have substantial direct effects on one or
                                                  by the private sector, of $100 million or
                                                                                                           State or local laws, regulations or                   more Indian Tribes, on the relationship
                                                  more in any one year. When such a
                                                                                                           policies which conflict with its                      between the Federal Government and
                                                  statement is needed for a rule, section
                                                                                                           provisions or which would otherwise                   Indian Tribes, or on the distribution of
                                                  205 of the UMRA generally requires the
                                                                                                           impede its full implementation. This                  power and responsibilities between the
                                                  Department to identify and consider a
                                                                                                           rule is not intended to have retroactive              federal government and Indian Tribes.
                                                  reasonable number of regulatory
                                                                                                           effect unless specified in the DATES                  In the spring of 2011, FNS offered
                                                  alternatives and adopt the least costly,
                                                                                                           section of the final rule. Prior to any               opportunities for consultation with
                                                  more cost-effective or least burdensome
                                                                                                           judicial challenge to the provisions of               Tribal officials or their designees to
                                                  alternative that achieves the objectives
                                                                                                           this rule or the application of its                   discuss the impact of the Healthy,
                                                  of the rule. Because data is not available
                                                                                                           provisions, all applicable administrative             Hunger-Free Kids Act of 2010 on tribes
                                                  to meaningfully estimate the
                                                                                                           procedures must be exhausted.                         or Indian Tribal governments. The
                                                  quantitative impacts of this rule on
                                                  school food authority revenues, we are                   Civil Rights Impact Analysis                          consultation sessions were coordinated
                                                  not certain that this rule is subject to the                                                                   by FNS and held on the following dates
                                                  requirements of sections 202 and 205 of                     FNS has reviewed this rule in                      and locations:
                                                  the UMRA. That said, it is possible that                 accordance with Departmental                          1. HHFKA Webinar & Conference Call—
                                                  the rule’s requirements could impose                     Regulations 4300–4, ‘‘Civil Rights                         April 12, 2011
                                                  costs on State, local, or Tribal                         Impact Analysis,’’ and 1512–1,                        2. Mountain Plains—HHFKA
                                                  governments or to the private sector of                  ‘‘Regulatory Decision Making                               Consultation, Rapid City, SD—
                                                  $100 million or more in any one year.                    Requirements.’’ After a careful review of                  March 23, 2011
                                                  FNS therefore conducted a regulatory                     the rule’s intent and provisions, FNS                 3. HHFKA Webinar & Conference Call—
                                                  impact analysis that includes a cost/                    has determined that this rule is not                       June, 22, 2011
                                                  benefit analysis substantially meeting                   intended to limit or reduce in any way                4. Tribal Self-Governance Annual
                                                  the requirements of sections 202 and                     the ability of protected classes of                        Conference in Palm Springs, CA—
                                                  205 of the UMRA.                                         individuals to receive benefits on the                     May 2, 2011
asabaliauskas on DSK3SPTVN1PROD with RULES




                                                                                                           basis of their race, color, national origin,          5. National Congress of American
                                                  Executive Order 12372                                    sex, age or disability nor is it intended                  Indians Mid-Year Conference,
                                                    The NSLP is listed in the Catalog of                   to have a differential impact on minority                  Milwaukee, WI—June 14, 2011
                                                  Federal Domestic Assistance under No.                    owned or operated business                               The five consultation sessions in total
                                                  10.555. The SBP is listed in the Catalog                 establishments and woman-owned or                     provided the opportunity to address
                                                  of Federal Domestic Assistance under                     operated business establishments that                 Tribal concerns related to school meals.
                                                  No. 10.553. For the reasons set forth in                 participate in the Child Nutrition                    There were no comments about this
                                                  the final rule in 7 CFR part 3015,                       Programs.                                             regulation during any of the


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                                                                       Federal Register / Vol. 81, No. 146 / Friday, July 29, 2016 / Rules and Regulations                                               50151

                                                  aforementioned Tribal consultation                          (ii) A combination food of vegetable               sodium contained in any added
                                                  sessions.                                                or fruit and meat or meat alternate; or               accompaniments such as butter, cream
                                                    Currently, FNS provides regularly                         (iii) A meat or meat alternate alone               cheese, salad dressing, etc., and must
                                                  scheduled quarterly consultation                         with the exception of yogurt, low-fat or              meet all of the other nutrient standards
                                                  sessions as a venue for collaborative                    reduced fat cheese, nuts, seeds and nut               in this section.
                                                  conversations with Tribal officials or                   or seed butters, and meat snacks (such                *     *     *     *    *
                                                  their designees. The most recent specific                as dried beef jerky); or
                                                  discussion of the Nutrition Standards                       (iv) A grain only, whole-grain rich                § 210.11a    [Removed]
                                                  for All Foods Sold in Schools rule was                   entrée that is served as the main dish of            ■   3. Section 210.11a is removed.
                                                  included in the consultation conducted                   the School Breakfast Program
                                                  on August 19, 2015. No questions or                      reimbursable meal.                                    Appendix B to Part 210 [Removed]
                                                  comments were raised specific to this                    *       *    *     *    *                             ■   4. Appendix B to part 210 is removed.
                                                  rulemaking at that time.                                    (6) Paired exempt foods mean food
                                                    Reports from these consultations are                   items that have been designated as                    PART 220—SCHOOL BREAKFAST
                                                  part of the USDA annual reporting on                     exempt from one or more of the nutrient               PROGRAM
                                                  Tribal consultation and collaboration.                   requirements individually which are
                                                  FNS will respond in a timely and                         packaged together without any                         ■ 5. The authority citation for 7 CFR
                                                  meaningful manner to Tribal                              additional ingredients. Such ‘‘paired                 part 220 continues to read as follows:
                                                  government requests for consultation                     exempt foods’’ retain their individually                Authority: 42 U.S.C. 1773, 1779, unless
                                                  concerning this rule.                                    designated exemption for total fat,                   otherwise noted.
                                                  List of Subjects                                         saturated fat, and/or sugar when
                                                                                                                                                                 § 220.12a    [Removed]
                                                                                                           packaged together and sold but are
                                                  7 CFR Part 210                                           required to meet the designated calorie               ■   6. Remove § 220.12a.
                                                    Grant programs-education; Grant                        and sodium standards specified in
                                                                                                                                                                 Appendix B to Part 220 [Removed and
                                                  programs-health; Infants and children;                   §§ 210.11(i) and (j) at all times.
                                                                                                                                                                 Reserved]
                                                  Nutrition; Reporting and recordkeeping                   *       *    *     *    *
                                                                                                              (d) Fruits and vegetables. (1) Fresh,              ■ 7. Remove and reserve Appendix B to
                                                  requirements; School breakfast and
                                                                                                           frozen and canned fruits with no added                part 220.
                                                  lunch programs; Surplus agricultural
                                                  commodities.                                             ingredients except water or packed in                   Dated: June 21, 2016.
                                                                                                           100 percent fruit juice or light syrup or             Kevin W. Concannon,
                                                  7 CFR Part 220                                           extra light syrup are exempt from the                 Under Secretary, Food, Nutrition, and
                                                    Grant programs-education; Grant                        nutrient standards included in this                   Consumer Services.
                                                  programs-health; Infants and children;                   section.                                              [FR Doc. 2016–17227 Filed 7–28–16; 8:45 am]
                                                  Nutrition; Reporting and recordkeeping                      (2) Fresh and frozen vegetables with               BILLING CODE 3410–30–P
                                                  requirements; School breakfast and                       no added ingredients except water and
                                                  lunch programs.                                          canned vegetables that are low sodium
                                                    Accordingly, for the reasons set forth                 or no salt added that contain no added                DEPARTMENT OF AGRICULTURE
                                                  in the preamble, 7 CFR parts 210 and                     fat are exempt from the nutrient
                                                  220 are amended as follows:                              standards included in this section.                   Food and Nutrition Service
                                                                                                           *       *    *     *    *
                                                  PART 210—NATIONAL SCHOOL                                    (f) * * *                                          7 CFR Parts 210 and 220
                                                  LUNCH PROGRAM                                               (3) * * *                                          [FNS–2014–0010]
                                                                                                              (iv) Whole eggs with no added fat are
                                                  ■ 1. The authority citation for 7 CFR                    exempt from the total fat and saturated               RIN 0584–AE25
                                                  part 210 continues to read as follows:                   fat standards but are subject to the trans
                                                                                                           fat, calorie and sodium standards.                    Local School Wellness Policy
                                                      Authority: 42 U.S.C. 1751–1760, 1779.
                                                                                                                                                                 Implementation Under the Healthy,
                                                  ■ 2. In § 210.11:                                        *       *    *     *    *                             Hunger-Free Kids Act of 2010
                                                  ■ a. Revise paragraph (a)(3);                               (i) Calorie and sodium content for
                                                  ■ b. Add paragraph (a)(6);                               snack items and side dishes sold as                   AGENCY:  Food and Nutrition Service,
                                                  ■ c. Remove paragraph (c)(2)(v);                         competitive foods. Snack items and side               USDA.
                                                  ■ d. Paragraph (c)(2)(vi) is redesignated                dishes sold as competitive foods must                 ACTION: Final rule.
                                                  as (c)(2)(v);                                            have not more than 200 calories and 200
                                                  ■ e. Revise paragraph (d);                               mg of sodium per item as packaged or                  SUMMARY:   This final rule requires all
                                                  ■ f. Add paragraph (f)(3)(iv);                           served, including the calories and                    local educational agencies that
                                                  ■ g. Revise the heading and the first                    sodium contained in any added                         participate in the National School
                                                  sentence of paragraph (i); and                           accompaniments such as butter, cream                  Lunch and School Breakfast Programs to
                                                  ■ h. Revise paragraph (j);                               cheese, salad dressing, etc., and must                meet expanded local school wellness
                                                    The revisions and additions read as                    meet all of the other nutrient standards              policy requirements consistent with the
                                                  follows:                                                 in this section. * * *                                requirements set forth in section 204 of
                                                                                                              (j) Calorie and sodium content for                 the Healthy, Hunger-Free Kids Act of
asabaliauskas on DSK3SPTVN1PROD with RULES




                                                  § 210.11 Competitive food service and                    entrée items sold as competitive foods.              2010. The final rule requires each local
                                                  standards.                                               Entrée items sold as competitive foods,              educational agency to establish
                                                    (a) * * *                                              other than those exempt from the                      minimum content requirements for the
                                                    (3) Entrée item means an item that is                 competitive food nutrition standards in               local school wellness policies, ensure
                                                  intended as the main dish and is either:                 paragraph (c)(3)(i) of this section, must             stakeholder participation in the
                                                    (i) A combination food of meat or                      have not more than 350 calories and 480               development and updates of such
                                                  meat alternate and whole grain rich                      mg of sodium per item as packaged or                  policies, and periodically assess and
                                                  food; or                                                 served, including the calories and                    disclose to the public schools’


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Document Created: 2018-02-08 07:52:02
Document Modified: 2018-02-08 07:52:02
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule and interim final rule.
DatesEffective date: This final rule is effective September 27, 2016.
ContactTina Namian, Branch Chief, School Meals Branch, Policy and Program Development Division, Child Nutrition Programs, Food and Nutrition Service, 3101 Park Center Drive, Alexandria, Virginia 22302, or by telephone at (703) 305-2590.
FR Citation81 FR 50132 
RIN Number0584-AE09
CFR Citation7 CFR 210
7 CFR 220
CFR AssociatedGrant Programs-Education; Grant Programs-Health; Infants and Children; Nutrition; Reporting and Recordkeeping Requirements; School Breakfast and Lunch Programs; Surplus Agricultural Commodities and Grant Programs-Education; Grant Programs-Health; Infants and Children; Nutrition; Reporting and Recordkeeping Requirements; School Breakfast and Lunch Programs

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