[Federal Register Volume 76, Number 78 (Friday, April 22, 2011)]
[Rules and Regulations]
[Pages 22603-22608]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-9843]
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Rules and Regulations
Federal Register
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Federal Register / Vol. 76, No. 78 / Friday, April 22, 2011 / Rules
and Regulations
[[Page 22603]]
DEPARTMENT OF AGRICULTURE
Food and Nutrition Service
7 CFR Parts 210, 215, 220, 225, and 226
RIN 0584-AE03
Geographic Preference Option for the Procurement of Unprocessed
Agricultural Products in Child Nutrition Programs
AGENCY: Food and Nutrition Service, USDA.
ACTION: Final rule.
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SUMMARY: The 2008 Farm Bill amended the Richard B. Russell National
School Lunch Act to direct that the Secretary of Agriculture encourage
institutions operating Child Nutrition Programs to purchase unprocessed
locally grown and locally raised agricultural products. Effective
October 1, 2008, institutions receiving funds through the Child
Nutrition Programs may apply an optional geographic preference in the
procurement of unprocessed locally grown or locally raised agricultural
products. This provision applies to institutions in all of the Child
Nutrition Programs, including the National School Lunch Program, School
Breakfast Program, Fresh Fruit and Vegetable Program, Special Milk
Program for Children, Child and Adult Care Food Program and Summer Food
Service Program, as well as to purchases made for these programs by the
Department of Defense Fresh Program. The provision also applies to
State agencies making purchases on behalf of any of the aforementioned
Child Nutrition Programs. The purpose of this rule is to finalize the
geographic preference option in Child Nutrition Programs.
DATES: This rule is effective May 23, 2011.
FOR FURTHER INFORMATION CONTACT: Julie Brewer, Chief, Policy and
Program Development Branch, Child Nutrition Division, Food and
Nutrition Service, 3101 Park Center Drive, Alexandria, Virginia 22302,
or by telephone at (703) 305-2590.
SUPPLEMENTARY INFORMATION:
Background
Section 4302 of Public Law 110-246, the Food, Conservation, and
Energy Act of 2008, amended section 9(j) of the Richard B. Russell
National School Lunch Act (42 U.S.C. 1758(j)) to require the Secretary
of Agriculture to encourage institutions operating Child Nutrition
Programs to purchase unprocessed locally grown and locally raised
agricultural products. Pursuant to section 4407 of Public Law 110-246,
beginning October 1, 2008, institutions receiving funds as participants
in the Child Nutrition Programs may apply an optional geographic
preference in the procurement of unprocessed locally grown or locally
raised agricultural products. This provision applies to institutions
operating all of the Child Nutrition Programs, including the National
School Lunch Program, School Breakfast Program, Fresh Fruit and
Vegetable Program, Special Milk Program, Child and Adult Care Food
Program and Summer Food Service Program, as well as to purchases made
for these programs by the Department of Defense Fresh Program. The
provision does not apply to purchases made by the Department. However,
the provision does also apply to State agencies making purchases on
behalf of any of the aforementioned Child Nutrition Programs. The
provisions were initially implemented through policy memoranda and
explanatory question and answer communications dated January 9, 2009,
July 22, 2009, and October 9, 2009.
The Department published a proposed rule on April 19, 2010, at 75
FR 20316 to solicit comments on the incorporation of this procurement
option in Child Nutrition Program regulations. The rule also served to
define the term ``unprocessed locally grown or locally raised
agricultural products'' to ensure that both the intent of Congress in
providing for such a procurement option was met and that any such
definition would facilitate ease of implementation for institutions
participating in the Child Nutrition Programs. The comment period ended
on June 18, 2010. The Department received 77 comments on the proposed
rule. The following discussion provides information on the comments as
well as a discussion of the clarifications and changes made to the
proposal based on the comments received.
General Comments
In general, the comments received by the Department were very
supportive of the regulation as proposed. Fifty-eight comments
commended the Department for clarifying previous interpretations of the
geographic preference option for procurement. Forty-four commentors
stated that they believed the updated language of the rule more closely
complied with the Congressional Conference Report language that
indicated that there is no intent to preclude ``de minimus handling and
preparation such as necessary to present an agricultural product to a
school food authority in a useable form.'' Forty-seven comments
supported the provision of the rule allowing the purchasing entity,
such as local school food authorities, to determine the local area to
which a geographic preference will be applied, indicating that they
agreed with the Department's view that individual circumstances and
product availability leads to the most successful local and regional
procurement programs.
Procurement Issues
As indicated in the proposed rule, traditionally, a geographic
preference established for procurements provides bidders located in a
specified geographic area additional points or credit calculated during
the evaluation of the proposals or bids received in response to a
solicitation. A geographic preference is not a procurement set-aside
for bidders located in the specified geographic area, guaranteeing them
a certain level or percentage of business. In addition, including a
geographic preference in a procurement does not preclude a bidder from
outside the specified geographic area from competing for, and possibly
being awarded, the contract subject to the geographic preference.
Rather, a geographic preference is a tool that gives bidders in a
specified geographic area a specific, defined advantage in the
procurement process. We received a number of comments specifically
[[Page 22604]]
requesting guidance on how to apply the geographic preference option in
procurement specifications and procedures as well as questions on
procurement processes in general. The Department published a policy
memorandum for program cooperators on general procurement and
geographic preference issues on February 1, 2011 and will be publishing
additional guidance on procurement provisions associated with
implementation of the geographic preference option included in this
final rule as needed. Therefore, no changes have been made to the
procurement-specific provisions included in the proposed rule and those
procurement provisions are finalized as proposed.
Geographic Area
By utilizing the statutorily established geographic preference
option in Child Nutrition Programs, purchasing institutions, such as
States, school food authorities, child care institutions and Summer
Food Service Program (SFSP) sponsors, may specifically identify the
geographic area within which unprocessed locally raised and locally
grown agricultural products will originate. As indicated in the
proposed rule, a responsive bidder would offer to provide unprocessed
locally raised and locally grown agricultural products from the
specifically identified geographic area. In most cases, we would expect
that a bidder would be located in the identified geographic area,
though it is possible for a responsive bidder to be located outside of
that area. These procurements may be accomplished through informal or
formal procurement procedures, as required by respective Child
Nutrition Program regulations.
The proposed rule provided for allowing institutions operating the
Child Nutrition Programs to specifically define geographic areas from
which they will seek to procure unprocessed local agricultural
products. It was proposed that each institution, whether it be a school
food authority, a child care institution or an SFSP sponsor, determine
how to define the geographic area. As indicated previously, 47 comments
supported allowing the purchasing entity to define the local area in
which the geographic preference option will be applied. No objections
to this provision were received, therefore it is finalized in this rule
as proposed.
One comment specifically recommended that the ``Buy American''
provisions of Sec. 210.21 and Sec. 220.16 of the National School
Lunch Program and School Breakfast Program regulations be specifically
noted in this amendment to those programs regulations. In response to
that comment, the Department reiterates that all other regulatory
requirements of the Child Nutrition Programs must be complied with when
implementing the geographic preference option. When specifying the
local area from which items will be purchased using the geographic
procurement option, purchasing entities must ensure that the ``Buy
American'' requirements of the regulations are complied with and
included in the procurement specifications. No change, however, has
been made in the regulatory language of this final rule.
Definition of Unprocessed Agricultural Products
As provided in the Joint Explanatory Statement of the Committee of
Conference in House Report 110-627, the term ``unprocessed'' precludes
the use of geographic preference in procuring agricultural products
that have significant value added components. The Conference report
also noted the acceptability of de minimus handling and preparation
``such as may be necessary to present an agricultural product to a
school food authority in a useable form, such as washing vegetables,
bagging greens, butchering livestock and poultry, pasteurizing milk,
and putting eggs in a carton.''
For the purpose of implementing the geographic preference
procurement option in the Child Nutrition Programs, the Department
proposed a definition of ``unprocessed agricultural products.'' The
guiding principles in developing the definition were that the
definition should:
(1) Comply with the language and reflect the intent of the statute;
(2) Ensure that any processing of agricultural products results in
only minimal value added to such products; and
(3) Facilitate ease of use of such products for institutions.
The definition of ``unprocessed agricultural products'' included in
the proposed rule specifically prohibited any processing method that
alters the inherent character of the agricultural product. To that end,
we included in the proposed definition a list of acceptable food
handling and preservation techniques for purposes of applying the
geographic preference procurement option. Such techniques included:
General heat transfer methods such as cooling, refrigerating and
freezing; size adjustment through size reduction (peeling, slicing,
dicing, cutting and grinding); drying/dehydration; washing; vacuum
packing and bagging; pasteurization for milk; the application of high
water pressure (``cold pasteurization''); butchering of livestock and
poultry and the cleaning of fish. The Department asserted that these
handling and preservation techniques both complied with the intent of
the statute and did not alter the inherent character of agricultural
products subjected to them.
While two commentors supported the definition as proposed, a number
of comments regarding the food handling and preservation techniques
included in the definition were received. The following discussion
outlines those comments by issue and the decisions made by the
Department in response to the comments in this final rule.
Combination Packages of Vegetables and Fruits
Fifty comments were received expressing support for the addition of
combination packages of local, frozen, bagged vegetables such as
zucchini and summer squash or fresh vegetable roast packages such as
winter squash, turnips and beets. The commentors indicated that the
``inherent character'' of the vegetables is not being altered in any
way when packaged in such a manner and fits within the ``de minimus''
handling and preparation requirements intended by Congress. In
addition, such packaging conforms with the language of the statute with
regard to presenting the product in usable form. The Department agrees
with the comments and, therefore, has revised the definition of
``unprocessed agricultural products'' to include such combination
packaged items in this final rule.
Frozen Products
One commentor indicated that frozen products should be included in
the definition. The proposed rule included frozen products and the
final rule retains frozen products as acceptable as a preservation
technique. Two comments were received requesting that, in order to
ensure that flash frozen products are included in the definition, the
Department specify Individually Quick Frozen (IQF) as an acceptable
preservation technique. The final rule retains inclusion of frozen
products as acceptable but the Department does not wish to include
specific techniques for freezing since technology changes over time and
such specific references to technique may necessitate future amendments
to the regulation in response to changes in technology.
Canned and Other Heat Preserved Products
Three comments were received requesting that canned products be
included in the definition of
[[Page 22605]]
``unprocessed agricultural products.'' One commentor wanted to allow
pasteurized cider and pickled products to be considered ``unprocessed''
for purposes of specifying a geographic preference for procurement.
While canned, pickled and pasteurized products are acceptable for
service in the Child Nutrition Programs, such products would not be
considered to be subject to a geographic procurement preference because
heat processing does not meet the ``de minimus'' standard of processing
established by Congress as assessed by the Department. Therefore, no
change in this regulation has been made in response to these comments.
Formed Products
Fifty comments were received supporting allowing foods such as
ground beef and other meat patties to be included in the definition of
``unprocessed agricultural products''. Those comments assert that such
products have been handled in a manner consistent with ``de minimus''
exceptions in that they are ground then formed similar to cutting
carrots into sticks or coin shapes. The commentors indicated that
contracting separately for further processing of ground meat products
which does not change the inherent character of that product would be
costly and time consuming for the purchasing entities. Five other
commentors recommended allowing meat patties made with pure meat and
containing no fillers or additives as meeting the criteria for
geographic preference procurement. The Department agrees with these
commentors and has revised the definition to include formed products
that contain no additives or fillers as acceptable for purchase using
the geographic preference procurement option.
Other Products
Forty-one comments were received recommending that cutting chicken
or other meat into fajita strips and filleting fish be allowed as
acceptable as meeting the definition of ``unprocessed agricultural
products''. The Department wishes to point out that fish filets would
be considered to be ``cleaned'' and cut, and slicing products into
strips would be considered to be ``cut'', both of which are included in
the definition as proposed. One commentor requested that ground flour
be allowed to be considered as acceptable. The Department wishes to
clarify that ground products are allowed and that the grinding of grain
into flour would be considered to be acceptable as a ground product
subject to the geographic preference procurement option. Therefore,
there is no change to the definition in response to these comments.
Preservatives
Forty-six comments were received requesting clarification as to
whether or not preservatives were allowed in products subject to the
geographic preference procurement option. Specifically, they requested
clarification as to whether or not ascorbic acid to hold color or
prevent oxidation once a fruit or vegetable product was cut or chopped
was acceptable. The Department agrees that this should be addressed and
has provided for the addition of ascorbic acid and/or other
preservatives that retain the color of a product or prevent oxidation
to the definition of ``unprocessed agricultural products''. However, no
other preservatives used for any other purpose are considered to be
acceptable.
Packaging
One commentor requested that portion packaging be explicitly
recognized as meeting the requirements of the rule. The Department
wishes to point out that packaging is recognized as allowable with
regard to the definition of ``unprocessed agricultural products''. The
size of such packaging included in the procurement specifications is
made at the discretion of the purchasing entity. Therefore, no change
in response to this comment has been made in this final rule.
High Water Pressure Cold Pasteurization
One commentor expressed concern that the term ``high water pressure
cold pasteurization'' included in the definition of ``unprocessed
agricultural product'' could be interpreted to mean irradiation. The
Department's intent was to use this term in the definition to reference
a washing technique. Since ``washing'' is already included in the
definition of ``unprocessed locally grown or locally raised
agricultural products'' and in response to this comment, the term
``high water pressure (cold pasteurization)'' is removed from the
definition.
This final rule prohibits the application of the geographic
preference procurement option for products subjected to processing
methods not included in the definition of ``unprocessed agricultural
products''.
This final rule adds new paragraphs to Sec. Sec. 210.21, 215.14a,
220.16, 225.17 and 226.22 of Title 7, CFR, to include the geographic
preference procurement option and define the term ``unprocessed locally
grown or locally raised agricultural products''.
Applicability to the Fresh Fruit and Vegetable Program
The geographic preference procurement option is applicable to
purchases made in the Fresh Fruit and Vegetable Program, 42 U.S.C.
1769a (FFVP). However, this provision shall only be applied within the
context of the FFVP's requirement that produce utilized in the program
be fresh. The definition of ``unprocessed locally grown or locally
raised agricultural products'' does not change the basic statutory
requirement that only fresh produce may be purchased using funds for
the Fresh Fruit and Vegetable Program. Development of regulations
pertaining to the requirements for the Fresh Fruit and Vegetable
Program are currently in process and the provisions relating to the
geographic preference procurement option will be included in that
proposed rule, as appropriate.
Executive Order 12866
This rule has been determined to be not significant and was not
reviewed by the Office Management and Budget in conformance with
Executive Order 12866.
Regulatory Flexibility Act
This rule has been reviewed with regard to the requirements of the
Regulatory Flexibility Act of 1980 (5 U.S.C. 601-612). It has been
certified that this rule will not have a significant economic impact on
a substantial number of small entities.
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 to State, local, or Tribal
governments, in the aggregate, or to 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. This rule does
not contain Federal mandates (under the regulatory provisions of Title
II of the UMRA) that
[[Page 22606]]
impose costs on State, local, or Tribal governments or to the private
sector of $100 million or more in any one year. This rule is,
therefore, not subject to the requirements of sections 202 and 205 of
the UMRA.
Executive Order 12372
The National School Lunch Program and the School Breakfast Program
are listed in the Catalog of Federal Domestic Assistance under No.
10.555 and 10.553, respectively. The Special Milk Program is listed
under No. 10.556. The Child and Adult Care Food Program is listed under
No. 10.558 and the Summer Food Service Program for Children is listed
under No. 10.559. 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. The
Food and Nutrition Service (FNS) 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. This rule simply
allows institutions that participate in the Child Nutrition Programs
the option to apply a geographic preference should such institutions
wish to procure unprocessed locally grown or locally raised
agricultural products.
Paperwork Reduction Act
The Paperwork Reduction Act of 1995 (44 U.S.C. Chap. 35; see 5 CFR
part 1320) requires that the Office of Management and Budget (OMB)
approve all collections of information by a Federal agency before they
can be implemented. Respondents are not required to respond to any
collection of information unless it displays a current valid OMB
control number. This rule does not contain information collection
requirements subject to approval by OMB under the Paperwork Reduction
Act of 1995.
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
E.O. 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 late 2010 and early 2011, USDA engaged
in a series of consultative sessions to obtain input by Tribal
officials or their designees concerning the impact of this rule on the
Tribe or Indian Tribal governments, or whether this rule may preempt
Tribal law. Reports from these consultations will be made part of the
USDA annual reporting on Tribal Consultation and Collaboration. USDA
will respond in a timely and meaningful manner to all Tribal government
requests for consultation concerning this rule and will provide
additional venues, such as webinars and teleconferences, to
periodically host collaborative conversations with Tribal officials or
their designees concerning ways to improve this rule in Indian country.
We are unaware of any current Tribal laws that could be in conflict
with this final rule.
List of Subjects
7 CFR Part 210
Grant programs--education, Grant programs--health, Infants and
children, Nutrition, Penalties, Reporting and recordkeeping
requirements, School breakfast and lunch programs, Surplus agricultural
commodities.
7 CFR Part 215
Food assistance programs, Grant programs--education, Grant
programs--health, Infants and children, Milk, Reporting and
recordkeeping requirements.
7 CFR Part 220
Grant programs--education, Grant programs--health, Infants and
children, Nutrition, Reporting and recordkeeping requirements, School
breakfast and lunch programs.
7 CFR Part 225
Food assistance programs, Grant programs--health, Infants and
children, Labeling, Reporting and recordkeeping requirements.
7 CFR Part 226
Accounting, Aged, Day care, Food assistance programs, Grant
programs, Grant programs--health, Indians, Individuals with
disabilities, Infants and children, Intergovernmental relations, Loan
programs, Reporting and recordkeeping requirements, Surplus
agricultural commodities.
Accordingly, 7 CFR Parts 210, 215, 220, 225, and 226 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:
[[Page 22607]]
Authority: 42 U.S.C. 1751-1760, 1779.
Subpart E--State Agency and School Food Authority Responsibilities
0
2. In Sec. 210.21, paragraph (g) is added to read as follows:
Sec. 210.21 Procurement.
* * * * *
(g) Geographic preference. (1) A school food authority
participating in the Program, as well as State agencies making
purchases on behalf of such school food authorities, may apply a
geographic preference when procuring unprocessed locally grown or
locally raised agricultural products. When utilizing the geographic
preference to procure such products, the school food authority making
the purchase or the State agency making purchases on behalf of such
school food authorities have the discretion to determine the local area
to which the geographic preference option will be applied;
(2) For the purpose of applying the optional geographic procurement
preference in paragraph (g)(1) of this section, ``unprocessed locally
grown or locally raised agricultural products'' means only those
agricultural products that retain their inherent character. The effects
of the following food handling and preservation techniques shall not be
considered as changing an agricultural product into a product of a
different kind or character: Cooling; refrigerating; freezing; size
adjustment made by peeling, slicing, dicing, cutting, chopping,
shucking, and grinding; forming ground products into patties without
any additives or fillers; drying/dehydration; washing; packaging (such
as placing eggs in cartons), vacuum packing and bagging (such as
placing vegetables in bags or combining two or more types of vegetables
or fruits in a single package); the addition of ascorbic acid or other
preservatives to prevent oxidation of produce; butchering livestock and
poultry; cleaning fish; and the pasteurization of milk.
PART 215--SPECIAL MILK PROGRAM FOR CHILDREN
0
3. The authority citation for 7 CFR Part 215 continues to read as
follows:
Authority: 42 U.S.C. 1772 and 1779.
0
4. In Sec. 215.14a, paragraph (e) is added to read as follows:
Sec. 215.14a Procurement standards.
* * * * *
(e) Geographic preference. A school food authority participating in
the Program may apply a geographic preference when procuring milk. When
utilizing the geographic preference to procure milk, the school food
authority making the purchase has the discretion to determine the local
area to which the geographic preference option will be applied.
* * * * *
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.
0
6. In Sec. 220.16, paragraph (f) is added to read as follows:
Sec. 220.16 Procurement.
* * * * *
(f) Geographic preference. (1) School food authorities
participating in the Program, as well as State agencies making
purchases on behalf of such school food authorities, may apply a
geographic preference when procuring unprocessed locally grown or
locally raised agricultural products. When utilizing the geographic
preference to procure such products, the school food authority making
the purchase or the State agency making purchases on behalf of such
school food authorities have the discretion to determine the local area
to which the geographic preference option will be applied;
(2) For the purpose of applying the optional geographic preference
in paragraph (f)(1) of this section, ``unprocessed locally grown or
locally raised agricultural products'' means only those agricultural
products that retain their inherent character. The effects of the
following food handling and preservation techniques shall not be
considered as changing an agricultural product into a product of a
different kind or character: Cooling; refrigerating; freezing; size
adjustment made by peeling, slicing, dicing, cutting, chopping,
shucking, and grinding; forming ground products into patties without
any additives or fillers; drying/dehydration; washing; packaging (such
as placing eggs in cartons), vacuum packing and bagging (such as
placing vegetables in bags or combining two or more types of vegetables
or fruits in a single package); addition of ascorbic acid or other
preservatives to prevent oxidation of produce; butchering livestock and
poultry; cleaning fish; and the pasteurization of milk.
* * * * *
PART 225--SUMMER FOOD SERVICE PROGRAM
0
7. The authority citation for 7 CFR Part 225 continues to read as
follows:
Authority: Secs. 9, 13 and 14, Richard B. Russell National
School Lunch Act, as amended, (42 U.S.C. 1758, 1761 and 1762a).
0
8. In Sec. 225.17, paragraph (e) is added to read as follows:
Sec. 225.17 Procurement standards.
* * * * *
(e) Geographic preference. (1) Sponsors participating in the
Program may apply a geographic preference when procuring unprocessed
locally grown or locally raised agricultural products. When utilizing
the geographic preference to procure such products, the sponsor making
the purchase has the discretion to determine the local area to which
the geographic preference option will be applied;
(2) For the purpose of applying the optional geographic preference
in paragraph (e)(1) of this section, ``unprocessed locally grown or
locally raised agricultural products'' means only those agricultural
products that retain their inherent character. The effects of the
following food handling and preservation techniques shall not be
considered as changing an agricultural product into a product of a
different kind or character: Cooling; refrigerating; freezing; size
adjustment made by peeling, slicing, dicing, cutting, chopping,
shucking, and grinding; forming ground products into patties without
any additives or fillers; drying/dehydration; washing; packaging (such
as placing eggs in cartons), vacuum packing and bagging (such as
placing vegetables in bags or combining two or more types of vegetables
or fruits in a single package); addition of ascorbic acid or other
preservatives to prevent oxidation of produce; butchering livestock and
poultry; cleaning fish; and the pasteurization of milk.
PART 226--CHILD AND ADULT CARE FOOD PROGRAM
0
9. The authority citation for 7 CFR Part 226 continues to read as
follows:
Authority: Secs. 9, 11, 14, 16, 17, Richard B. Russell National
School Lunch Act, as amended (42 U.S.C. 1758, 1759a, 1762a, 1765 and
1766).
0
10. In Sec. 226.22, paragraph (n) is added to read as follows:
Sec. 226.22 Procurement standards.
* * * * *
(n) Geographic preference. (1) Institutions participating in the
Program
[[Page 22608]]
may apply a geographic preference when procuring unprocessed locally
grown or locally raised agricultural products. When utilizing the
geographic preference to procure such products, the institution making
the purchase has the discretion to determine the local area to which
the geographic preference option will be applied;
(2) For the purpose of applying the optional geographic preference
in paragraph (n)(1) of this section, ``unprocessed locally grown or
locally raised agricultural products'' means only those agricultural
products that retain their inherent character. The effects of the
following food handling and preservation techniques shall not be
considered as changing an agricultural product into a product of a
different kind or character: Cooling; refrigerating; freezing; size
adjustment made by peeling, slicing, dicing, cutting, chopping,
shucking, and grinding; forming ground products into patties without
any additives or fillers; drying/dehydration; washing; packaging (such
as placing eggs in cartons), vacuum packing and bagging (such as
placing vegetables in bags or combining two or more types of vegetables
or fruits in a single package); addition of ascorbic acid or other
preservatives to prevent oxidation of produce; butchering livestock and
poultry; cleaning fish; and the pasteurization of milk.
Dated: April 18, 2011.
Audrey Rowe,
Administrator, Food and Nutrition Service.
[FR Doc. 2011-9843 Filed 4-21-11; 8:45 am]
BILLING CODE 3410-30-P