[Federal Register Volume 73, Number 149 (Friday, August 1, 2008)]
[Rules and Regulations]
[Pages 44897-44909]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-17594]



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Rules and Regulations
                                                Federal Register
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Federal Register / Vol. 73, No. 149 / Friday, August 1, 2008 / Rules 
and Regulations

[[Page 44897]]



DEPARTMENT OF AGRICULTURE

Cooperative State Research, Education, and Extension Service

7 CFR Part 3430

RIN 0524-AA28


Competitive and Noncompetitive Non-formula Grant Programs--
General Grant Administrative Provisions and Program-Specific 
Administrative Provisions for the Specialty Crop Research Initiative

AGENCY: Cooperative State Research, Education, and Extension Service, 
USDA.

ACTION: Interim Rule and request for comments.

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

SUMMARY: The Cooperative State Research, Education, and Extension 
Service (CSREES) is publishing one set of administrative requirements 
that contain elements common to all of the competitive and 
noncompetitive non-formula grant programs the Agency administers as an 
interim rule. Although this interim rule becomes effective on the date 
of publication, CSREES is requesting comments for a 60-day period as 
identified below. In a relatively short period of time, this will allow 
CSREES to apply basic rules to grant programs that are currently 
operating without them, including new non-formula grant programs 
created by the passage of the Food, Conservation, and Energy Act of 
2008 (FCEA) (Pub. L. 110-234) and to efficiently implement changes to 
programs with existing regulations as required by FCEA. The provisions 
in subparts A through E will serve as a single Agency resource 
codifying current practices simply and coherently for almost all CSREES 
competitive and noncompetitive non-formula grant programs except the 
Small Business Innovation Research (SBIR) Program. As specific rules 
are developed for each CSREES grant program, CSREES will propose adding 
a subpart for that Federal assistance program to this regulation. This 
interim rule is being published with a first set of program-specific 
grant regulations as subpart F for the Specialty Research Crop 
Initiative, authorized under section 7311 of FCEA.

DATES: This interim rule is effective August 1, 2008. The Agency must 
receive comments on or before September 30, 2008.

ADDRESSES: You may submit comments, identified by RIN 0524-AA28, by any 
of the following methods:
    Federal eRulemaking Portal: http://www.regulations.gov. Follow the 
instructions for submitting comments.
    E-mail: [email protected]. Include Regulatory Information Number 
(RIN) number 0524-AA28 in the subject line of the message.
    Fax: 202-401-7752.
    Mail: Paper, disk or CD-ROM submissions should be submitted to 
Cooperative State Research, Education, and Extension Service, U.S. 
Department of Agriculture, STOP 2299, 1400 Independence Avenue, SW., 
Washington, DC 20250-2299.
    Hand Delivery/Courier: Cooperative State Research, Education, and 
Extension Service, U.S. Department of Agriculture, Room 2258, 
Waterfront Centre, 800 9th Street, SW., Washington, DC 20024.
    Instructions: All submissions received must include the agency name 
and the RIN for this rulemaking. All comments received will be posted 
without change to http://www.regulations.gov, including any personal 
information provided.

FOR FURTHER INFORMATION CONTACT: Erin Daly, Policy Section Leader, 
Office of Extramural Programs, Cooperative State Research, Education, 
and Extension Service, U.S. Department of Agriculture, STOP 2299, 1400 
Independence Avenue, SW., Washington, DC 20250-2299; Voice: 202-401-
3319; Fax: 202-401-7752; E-mail: [email protected].

SUPPLEMENTARY INFORMATION: 

I. Background and Summary

Authority

    This rulemaking is authorized by section 1470 of the National 
Agricultural Research, Extension, and Teaching Policy Act of 1977 
(NARETPA), as amended, Public Law 95-113 (7 U.S.C. 3101 et seq.). It 
furthers the streamlining and standardization efforts initiated by the 
Federal Financial Assistance Management Improvement Act of 1999, Public 
Law 106-107 (31 U.S.C. 6101 note) which sunset in November 2007, and is 
in accordance with the efforts of CSREES and the U.S. Department of 
Agriculture (USDA) to streamline and simplify the entire grants process 
while meeting the ever-increasing accountability and transparency 
standards.

Context

    CSREES has published administrative provisions specific to some of 
the non-formula grant programs it administers. These provisions appear 
in Parts 3400, Special Research Grants Program; 3401, Rangeland 
Research Grants Program; 3402, Food and Agricultural Sciences National 
Needs Graduate and Postgraduate Fellowship Grants Program; 3405, Higher 
Education Challenge Grants Program; 3406, 1890 Institution Capacity 
Building Grants Program; 3411, National Research Initiative Competitive 
Grants Program; and 3415, Biotechnology Risk Assessment Research Grants 
Program of 7 CFR. This interim rule will not apply to the Small 
Business Research Innovation (SBIR) Program with implementing 
regulations codified at 7 CFR 3403. Where the interim administrative 
provisions conflict with existing regulations for CSREES administered 
non-formula grant programs, the existing regulations (i.e., 7 CFR parts 
3400 through 3402, 3405, 3406, 3411, and 3415) for these programs will 
supersede until the regulation is cancelled or the subpart for that 
specific program is promulgated under this part.

Purpose

    A primary function of CSREES is the fair, effective, and efficient 
administration of Federal assistance programs implementing agricultural 
research, education, and extension programs. The Agency's development 
and publication of regulations for its non-formula grant programs 
enhance its accountability and standardize procedures across the grant 
programs it administers while providing transparency to the public. 
More than

[[Page 44898]]

thirty grant programs administered by CSREES are not currently governed 
by administrative provisions; and CSREES' existing administrative 
provisions fail to take advantage of basic similarities between non-
formula grant programs and the Federal government-wide efforts to 
standardize and streamline the entire grant process from pre-award 
through closeout and post-award. The cumulative effect is duplicative, 
confusing language, contrary to the needs and demands of applicants and 
grantees for consistent and clear grant policies and procedures.
    This rulemaking attempts to solve the problem by addressing the 
elements common to all of the competitive and noncompetitive grant 
programs CSREES administers. In this way, the Agency can apply basic 
rules to grant programs that are currently operating without them as 
well as quickly implement regulations for any new program. In addition, 
this rule will serve as a single resource, except for the SBIR and 
formula grant programs, that codifies current processes simply and 
coherently.
    This interim rule will allow CSREES to finally document and codify 
the grant policies and business practices it sought to standardize and 
streamline in concert with other Federal grant-making agencies in 
response to various laws (including Pub. L. 106-107), regulations, and 
Presidential, Departmental, and Agency directives and initiatives. As 
of fiscal year 2008, CSREES publishes program solicitations or Requests 
For Applications (RFAs) in an Agency-wide template (incorporating the 
Federal government-wide requirements and standards) on the Grants.gov 
web site; accepts all applications (using the SF-424 form families) via 
Grants.gov; requires all competitive and noncompetitive non-formula 
programs to submit all progress and final technical reports via the 
Current Research Information System (CRIS); and as of July 1, 2008, 
implemented a more comprehensive and updated set of award terms and 
conditions that are consistent with other Federal grant-making 
agencies, yet address the unique needs of CSREES programs and USDA and 
CSREES business practices. These interim rules also address various 
issues related to audit findings and recommendations from the USDA 
Office of Inspector General (e.g., timely closeout of expired awards 
and restriction of grant funds 90 days after the expiration date). In 
response to Office of Management and Budget (OMB) Circular A-123 on 
Internal Controls, Improper Payment Information Act (IPIA), and other 
oversight and monitoring requirements, CSREES is seeking to clearly 
establish and implement monitoring and oversight procedures and systems 
to ensure that Federal assistance funds are being efficiently and 
effectively expended in accordance with program authorities and Federal 
assistance laws and regulations.

Alternatives

    CSREES considered publishing separate rules for each uncovered 
grant program. However, this would defeat the purposes of recent laws, 
regulations, and Presidential, Departmental, and Agency initiatives to 
standardize and streamline the entire grant cycle. Furthermore, it 
would be a time consuming practice to draft and publish a final rule 
for each uncovered program. On the other hand, this interim rule 
provides clearer, more consistent and effective grant policies and 
procedures for the grantee which will contribute to more efficient and 
effective program delivery and potentially result in less audit 
findings and disallowed costs. The Agency expects this interim rule to 
contribute and facilitate more consistent processes across grant 
programs within CSREES and across USDA and the Federal government. By 
making better use of standard administrative provisions, CSREES also 
anticipates being able to publish clearer and more consistent RFAs 
within a shorter time frame and provide applicants, grantees, staff, 
and the public with one comprehensive set of administrative provisions.

Compliance

    Once implemented, applicants who fail to comply with the new 
administrative provisions may not have their applications considered 
for funding by CSREES, may have their grant suspended or terminated, or 
may be billed for disallowed costs. This penalty provision can be 
enforced and is critical to CSREES' fair, effective, and efficient 
administration of grant programs. It is anticipated that having one set 
of administrative provisions codified in one part will assist 
applicants and grantees in understanding and complying with Federal 
assistance laws and regulations, as well as the intent of the 
authorizing regulation.

Organization

    CSREES organized the regulation as follows: Subparts A through E 
provide administrative provisions for all competitive and 
noncompetitive non-formula grants. Subparts F and thereafter apply to 
specific CSREES programs and are organized in the following groups: 
Research programs (i.e., programs with a predominantly research focus), 
education and multicultural programs, extension programs, integrated 
programs (i.e., programs that statutorily require the integration of 
two or more components--research, education, or extension); and other 
programs. See section 3430.2 below for definitions (e.g., research, 
extension, and education).
    CSREES is, to the extent practical, using the following subpart 
template for each program authority: (1) Applicability of regulations, 
(2) purpose, (3) eligibility, (4) definitions (those in addition to or 
different from 3430.2), (5) project types and priorities, (6) funding 
restrictions (including indirect costs), and (7) matching requirements. 
Subparts F and thereafter contain the above seven components in this 
order. Additional sections may be added for a specific program if there 
are additional requirements or a need for additional rules for the 
program (e.g., additional reporting requirements).

Subpart F--Specialty Crop Research Initiative

    As stated above, this interim rulemaking includes the program-
specific rules as subpart F for the Specialty Crop Research Initiative 
(SRCI) which is authorized under section 7311 of FCEA.
    Through this program-specific regulation under subpart F, Sec.  
3430.202, CSREES is defining ``integrated'' and ``specialty crop.'' 
Subpart F also provides that individual applicants must be U.S. 
citizens or a national of the United States and excludes foreign or 
international organizations. Section 3430.204 provides that CSREES can 
develop and implement new activities and focus areas not identified in 
3430.201 based on input provided by stakeholders and as determined by 
CSREES. Section 3430.205 states the specific program restrictions and 
clarifies the indirect cost policy for the SCRI Program. Section 
3430.206 states the specific matching requirements for this program and 
that these matching requirements cannot be waived.

Timeline for Implementing Regulations

    CSREES is publishing this rule as interim with a 60-day comment 
period and anticipates a final rule by March 1, 2009. However, in the 
interim, these regulations apply to all CSREES competitive and 
noncompetitive non-formula programs (except for the programs 
implemented by 7 CFR Part 3400, Special Research Grants Program; 7 CFR 
Part 3401, Rangeland Research

[[Page 44899]]

Grants Program; 7 CFR Part 3402, Food and Agricultural Sciences 
National Needs Graduate and Postgraduate Fellowship Grants Program; 7 
CFR Part 3405, Higher Education Challenge Grants Program; 7 CFR Part 
3406, 1890 Institution Capacity Building Grants Program; 7 CFR Part 
3411, National Research Initiative Competitive Grants Program; and 7 
CFR Part 3415, Biotechnology Risk Assessment Research Grants Program) 
until the regulations for these programs (i.e., the individual 
subparts) are in effect or superseded by statute). As stated 
previously, this regulation will not apply to 7 CFR Part 3403, Small 
Business Innovation Research Grants Program. Within the next 18 months, 
CSREES plans to cancel some of the existing program-specific 
regulations identified in 7 CFR and incorporate these program-specific 
regulations as separate subparts under this part. In addition, CSREES 
is currently drafting a CSREES Grants Policy Manual, which while 
incorporating the regulations under this part, will provide more 
specific instructions, detailed explanations, and background for 
potential applicants, grantees, Agency and Departmental staff, and the 
public.

II. Administrative Requirements for the Proposed Rulemaking

Executive Order 12866

    This action has been determined not significant for purposes of 
Executive Order 12866, and therefore, has not been reviewed by the 
Office of Management and Budget. This interim rule will not materially 
alter the budgetary impact of entitlements, grants, user fees, or loan 
programs; nor will it have an annual effect on the economy of $100 
million or more; nor will it adversely affect the economy, a sector of 
the economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local, or tribal governments or communities 
in a material way. Furthermore, it does not raise a novel legal or 
policy issue arising out of legal mandates, the President's priorities 
or principles set forth in the Executive Order.

Regulatory Flexibility Act of 1980

    This interim rule has been reviewed in accordance with the 
Regulatory Flexibility Act of 1980, as amended by the Small Business 
Regulatory Enforcement Fairness Act of 1996, 5 U.S.C. 601-612. The 
Department concluded that the rule does not involve regulatory and 
informational requirements regarding businesses, organizations, and 
governmental jurisdictions subject to regulation.

Paperwork Reduction Act (PRA)

    The Department certifies that this interim rule has been assessed 
in accordance with the requirements of the Paperwork Reduction Act, 44 
U.S.C. 3501 et seq. (PRA). The Department concludes that this interim 
rule does not impose any new information requirements; however, the 
burden estimates will increase for existing approved information 
collections associated with this rule due to additional applicants. 
These estimates will be provided to OMB. In addition to the SF-424 form 
families (i.e., Research and Related and Mandatory), SF-272, Federal 
Cash Transactions Report, and SF-269, Financial Status Reports; CSREES 
has three currently approved OMB information collections associated 
with this rulemaking: OMB Information Collection No. 0524-0042, CSREES 
Current Research Information System (CRIS); No. 0524-0041, CSREES 
Application Review Process; and No. 0524-0026, Assurance of Compliance 
with the Department of Agriculture Regulations Assuring Civil Rights 
Compliance and Organizational Information.

Catalog of Federal Domestic Assistance

    This interim regulation applies to the following Federal assistance 
programs administered by CSREES including 10.309, Specialty Crop 
Research Initiative.

The National Environmental Policy Act of 1969

    The Department certifies this interim rule has been assessed in 
accordance with the requirements of the National Environmental Policy 
Act of 1969, 42 U.S.C. 4321 et seq. (NEPA). The Department concludes 
that the NEPA requirements do not apply to this rulemaking because this 
interim rule includes no provisions impacting the maintenance, 
preservation or enhancement of a healthful environment.

Federal Regulations and Policies on Families

    The Department has reviewed this interim rule in accordance with 
the requirements of section 654 of the Treasury and general Government 
Appropriations Act of 1999, 5 U.S.C. 601 note. This interim regulation 
was not found to have a potential negative effect on family well-being 
as it is defined thereunder.

Executive Order 13045: Protection of Children From Environmental and 
Safety Risk

    The Department certifies that this interim rule has been assessed 
regarding the environmental health risks and safety risks that may 
disproportionately affect children. This interim regulation was not 
found to have a negative affect on the health and safety of children.

Unfunded Mandates Reform Act of 1995 and Executive Order 13132

    The Department has reviewed this interim rule in accordance with 
the requirements of Executive Order No. 13132, 64 FR 43225 (August 10, 
1999) and the Unfunded Mandates Act of 1995, 2 U.S.C. 1501 et seq., and 
has found no potential or substantial direct effects on the States, on 
the relationship between the national government and the States, or on 
the distribution of power and responsibilities among the various levels 
of government. As there is no Federal mandate contained herein that 
could result in increased expenditures by State, local tribal 
governments or by the private sector, the department has not prepared a 
budgetary impact statement.

Executive Order 13175: Consultation and Coordination With Indian Tribal 
Governments

    The Department has reviewed this interim rule in accordance with 
Executive Order 13175, 65 FR 67249 (Nov. 9, 2000), and has determined 
that it does not have ``tribal implications.'' The interim rule does 
not ``have substantial direct effects on one or more Indian tribes, on 
the relationship between the Federal government and Indian Tribes, or 
on the distribution of power and responsibilities between the Federal 
government and Indian tribes.''

Executive Order 12630: Governmental Actions and Interference With 
Constitutionally Protected Property Rights

    The Department has reviewed this interim rule in accordance with 
Executive Order 12630, 53 FR 8859 (Mar. 15, 1988) and has determined 
that it does not contain any ``policies that have takings implications 
in regard to the licensing, permitting, or other condition requirements 
or limitations on private property use, or that require dedications or 
exactions from owners of private property.''

Executive Order 13211: Energy Supply, Distribution, or Use

    The Department has reviewed this interim regulation and has 
determined that the provisions of Executive Order

[[Page 44900]]

13211, 66 FR 28355 (May 18, 2001), are not applicable as this is not a 
significant regulatory action and there are no direct or implied 
effects on energy supply, distribution, or use.

Clarity of This Regulation

    Executive Order 12866, 58 FR 51735 (September 30, 1993), and the 
President's memorandum of June 1, 1998, require each agency to write 
all rules in plain language. The Department invites comments on how to 
make this interim rule easier to understand.

List of Subjects in 7 CFR Part 3430

    Administrative practice and procedure, Agricultural research, 
Education, Extension, Federal assistance.

0
For the reasons discussed in the preamble, the Cooperative State 
Research, Education, and Extension Service is amending chapter XXXIV of 
title 7 of the Code of Federal Regulations to add part 3430 to read as 
follows:

PART 3430--COMPETITIVE AND NONCOMPETITIVE NON-FORMULA GRANT 
PROGRAMS--GENERAL GRANT ADMINISTRATION PROVISIONS

Subpart A--General Information
Sec.
3430.1 Applicability of regulations.
3430.2 Definitions.
3430.3 Deviations.
3430.4 Other applicable statutes and regulations.
Subpart B--Pre-Award: Solicitation and Application
3430.11 Competition.
3430.12 Requests for applications.
3430.13 Letter of intent to submit an application.
3430.14 Types of applications; types of grants instruments.
3430.15 Stakeholder input.
3430.16 Eligibility requirements.
3430.17 Content of an application.
3430.18 Submission of an application.
3430.19 Resubmission of an application.
3430.20 Acknowledgment of an application.
3430.21 Confidentiality of applications and awards.
Subpart C--Pre-Award: Application Review and Evaluation
3430.31 Guiding principles.
3430.32 Preliminary application review.
3430.33 Selection of reviewers.
3430.34 Evaluation criteria.
3430.35 Review of noncompetitive applications.
3430.36 Procedures to minimize or eliminate duplication of effort.
3430.37 Feedback to applicants.
Subpart D--Award
3430.41 Administration.
Subpart E--Post-Award and Closeout
3430.51 Payment.
3430.52 Cost sharing and matching.
3430.53 Program income.
3430.54 Technical reporting.
3430.55 Financial reporting.
3430.56 Project meetings.
3430.57 Hearings and appeals.
3430.58 Closeout procedures.

Research Programs

Subpart F--Specialty Crop Research Initiative
3430.200 Applicability of regulations.
3430.201 Purpose.
3430.202 Definitions.
3430.203 Eligibility.
3430.204 Project types and priorities.
3430.205 Funding restrictions.
3430.206 Matching requirements.

    Authority: 7 U.S.C. 3316; Pub. L. 106-107 (31 U.S.C. 6101 note)

Subpart A--General Information


Sec.  3430.1  Applicability of regulations.

    (a) This part provides agency specific regulations regarding the 
application for, evaluation, award, and post-award administration of 
Cooperative State Research, Education, and Extension Service (CSREES) 
awards, and are supplementary to the uniform assistance regulations at 
7 CFR parts 3016 (State, local, and tribal governments), 3019 
(institutions of higher education, hospitals, and nonprofits), and 3015 
(all others), as applicable.
    (b) Competitive programs. This part applies to all agricultural 
research, education, and extension competitive and related programs for 
which the Cooperative State Research, Education, and Extension Service 
(CSREES) has administrative or other authority, as well as any other 
Federal assistance program delegated to the CSREES administrator. In 
cases where regulations of this part conflict with existing regulations 
of CSREES in title 7 (i.e., 7 CFR parts 3400 through 3499) of the Code 
of Federal Regulations, regulations of this part shall supersede. This 
part does not apply to the Small Business Innovation Research (SBIR) 
Program.
    (c) Noncompetitive programs. Subparts A, B, D, and E of this part, 
as well as Sec.  3430.35, apply to all noncompetitive agricultural 
research, education, and extension programs administered by CSREES, as 
well as any other Federal assistance program delegated to the CSREES 
administrator.
    (d) Grant programs administered on behalf of other agencies. 
Subparts A through E of this part, as appropriate, apply to competitive 
and noncompetitive grants administered on behalf of other agencies of 
the Federal government. Requirements specific to these grant programs 
will be included in the program solicitations or RFAs.
    (e) Grant programs administered jointly with other agencies. 
Subparts A through E of this part, as appropriate, apply to competitive 
and noncompetitive grants administered jointly with other agencies of 
the Federal government. Requirements specific to these grant programs 
will be included in the appropriate program solicitations or RFAs 
published by both or either agency.
    (f) Formula fund grants programs. This part does not apply to any 
of the formula grant programs administered by CSREES. Formula funds are 
the research funds provided to 1862 land-grant institutions and 
agricultural experiment stations under the Hatch Act of 1887 (7 U.S.C. 
361a, et seq.); extension funds provided to 1862 land-grant 
institutions under sections 3(b) and 3(c)) of the Smith-Lever Act (7 
U.S.C. 343(b) and (c)) and section 208(c) of the District of Columbia 
Public Postsecondary Education Reorganization Act, Public Law 93-471; 
agricultural extension and research funds provided to 1890 land-grant 
institutions under sections 1444 and 1445 of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (NARETPA) (7 
U.S.C. 3221 and 3222); expanded food and nutrition education program 
funds authorized under section 3(d) of the Smith-Lever Act to the 1862 
land-grant institutions and the 1890 land-grant institutions; extension 
funds under the Renewable Resources Extension Act for the 1862 land-
grant institutions and the 1890 land-grant institutions; research funds 
provided to forestry schools under the McIntire-Stennis Cooperative 
Forestry Research Act of 1962 (16 U.S.C. 582a, et seq.); and animal 
health and disease research funds provided to veterinary schools and 
agricultural experiment stations under section 1433 of NARETPA (7 
U.S.C. 3195).


Sec.  3430.2  Definitions.

    As used in this part:
    1862 Land-Grant Institution means an institution eligible to 
receive funds under the Act of July 2, 1862, as amended (7 U.S.C. 301 
et seq.). Unless otherwise stated for a specific program, this term 
includes a research foundation maintained by such an institution.
    1890 Land-Grant Institution means one of those institutions 
eligible to receive funds under the Act of August 30, 1890, as amended 
(7 U.S.C. 321 et seq.), including Tuskegee University and West Virginia 
State University.

[[Page 44901]]

Unless otherwise stated for a specific program, this term includes a 
research foundation maintained by such an institution.
    1994 Land-Grant Institution means one of those institutions as 
defined in section 532 of the Equity in Educational Land-Grant Status 
Act of 1994, as amended (7 U.S.C. 301 note). These institutions are 
commonly referred to as Tribal Colleges or Universities.
    Administrator means the Administrator of the Cooperative State 
Research, Education, and Extension Service (CSREES) and any other 
officer or employee of the CSREES to whom the authority involved is 
delegated.
    Advisory Board means the National Agricultural Research, Extension, 
Education, and Economics Advisory Board.
    Agricultural research means research in the food and agricultural 
sciences.
    Applied research means research that includes expansion of the 
findings of fundamental research to uncover practical ways in which new 
knowledge can be advanced to benefit individuals and society.
    Authorized Departmental Officer or ADO means the Secretary or any 
employee of the Department with delegated authority to issue or modify 
grant instruments on behalf of the Secretary.
    Authorized Representative or AR means the President or Chief 
Executive Officer of the applicant organization or the official, 
designated by the President or Chief Executive Officer of the applicant 
organization, who has the authority to commit the resources of the 
organization to the project.
    Budget period means the interval of time (usually 12 months) into 
which the project period is divided for budgetary and reporting 
purposes.
    Cash contributions means the recipient's cash outlay, including the 
outlay of money contributed to the recipient by non-Federal third 
parties.
    Citizen or national of the United States means a citizen or native 
resident of a State; or, a person defined in the Immigration and 
Nationality Act, 8 U.S.C. 1101(a)(22), who, though not a citizen of the 
United States, owes permanent allegiance to the United States. When 
eligibility is claimed solely on the basis of permanent allegiance, 
documentary evidence from the Immigration and Naturalization Service as 
to such eligibility must be made available to CSREES upon request.
    College or university means, unless defined in a separate subpart, 
an educational institution in any State which:
    (1) Admits as regular students only persons having a certificate of 
graduation from a school providing secondary education, or the 
recognized equivalent of such a certificate;
    (2) Is legally authorized within such State to provide a program of 
education beyond secondary education;
    (3) Provides an educational program for which a bachelor's degree 
or any other higher degree is awarded;
    (4) Is a public or other nonprofit institution; and
    (5) Is accredited by a nationally recognized accrediting agency or 
association. Unless otherwise stated for a specific program, this term 
includes a research foundation maintained by such an institution.
    Department means the United States Department of Agriculture.
    Education activity or teaching activity means formal classroom 
instruction, laboratory instruction, and practicum experience in the 
food and agricultural sciences and other related matters such as 
faculty development, student recruitment and services, curriculum 
development, instructional materials and equipment, and innovative 
teaching methodologies.
    Established and demonstrated capacity means that an organization 
has met the following criteria:
    (1) Conducts any systematic study directed toward new or fuller 
knowledge and understanding of the subject studied; or,
    (2) Systematically relates or applies the findings of research or 
scientific experimentation to the application of new approaches to 
problem solving, technologies, or management practices; and
    (3) Has facilities, qualified personnel, independent funding, and 
prior projects and accomplishments in research or technology transfer.
    Extension means informal education program conducted in the States 
in cooperation with the Unites States Department of Agriculture.
    Extension activity means an act or process that delivers science-
based knowledge and informal educational programs to people, enabling 
them to make practical decisions.
    Food and agricultural sciences. The term ``food and agricultural 
sciences'' means basic, applied, and developmental research, extension, 
and teaching activities in food and fiber, agricultural, renewable 
natural resources, forestry, and physical and social sciences, 
including activities relating to the following:
    (1) Animal health, production, and well-being.
    (2) Plant health and production.
    (3) Animal and plant germ plasm collection and preservation.
    (4) Aquaculture.
    (5) Food safety.
    (6) Soil and water conservation and improvement.
    (7) Forestry, horticulture, and range management.
    (8) Nutritional sciences and promotion.
    (9) Farm enhancement, including financial management, input 
efficiency, and profitability.
    (10) Home economics.
    (11) Rural human ecology.
    (12) Youth development and agricultural education, including 4-H 
clubs.
    (13) Expansion of domestic and international markets for 
agricultural commodities and products, including agricultural trade 
barrier identification and analysis.
    (14) Information management and technology transfer related to 
agriculture.
    (15) Biotechnology related to agriculture.
    (16) The processing, distributing, marketing, and utilization of 
food and agricultural products.
    Fundamental research means research that increases knowledge or 
understanding of the fundamental aspects of phenomena and has the 
potential for broad application, and has an effect on agriculture, 
food, nutrition, or the environment.
    Graduate degree means a Master's or doctoral degree.
    Grant means the award by the Authorized Departmental Officer of 
funds to an eligible grantee to assist in meeting the costs of 
conducting for the benefit of the public, an identified project which 
is intended and designed to accomplish the purpose of the program as 
identified in the program solicitation or RFA.
    Grantee means the organization designated in the grant award 
document as the responsible legal entity to which a grant is awarded.
    Insular area means the Commonwealth of Puerto Rico, Guam, American 
Samoa, the Commonwealth of the Northern Mariana Islands, the Federated 
States of Micronesia, the Republic of the Marshall Islands, the 
Republic of Palau, and the Virgin Islands of the United States.
    Integrated means to incorporate two or three components of the 
agricultural knowledge system (research, education, and extension) 
around a problem area or activity.
    Land-grant Institutions means the 1862 Land-Grant Institutions, 
1890 Land-Grant Institutions, and 1994 Land-Grant Institutions.

[[Page 44902]]

    Matching or cost sharing means that portion of allowable project or 
program costs not borne by the Federal Government, including the value 
of in-kind contributions.
    Merit review means an evaluation of a proposed project or elements 
of a proposed program whereby the technical quality and relevance to 
regional or national goals are assessed.
    Merit reviewers means peers and other individuals with expertise 
appropriate to conduct merit review of a proposed project.
    Methodology means the project approach to be followed.
    Mission-linked research means research on specifically identified 
agricultural problems which, through a continuum of efforts, provides 
information and technology that may be transferred to users and may 
relate to a product, practice, or process.
    National laboratories include Federal laboratories that are 
government-owned contractor-operated or government-owned government-
operated.
    Peer reviewers means experts or consultants qualified by training 
and experience to give expert advice on the scientific and technical 
merit of grant applications or the relevance of those applications to 
one or more of the application evaluation criteria. Peer reviewers may 
be adhoc or convened as a panel.
    Prior approval means written approval by an Authorized Departmental 
Officer evidencing prior consent.
    Private research organization means any non-governmental 
corporation, partnership, proprietorship, trust, or other organization.
    Private sector means all non-public entities, including for-profit 
and nonprofit commercial and non-commercial entities, and including 
private or independent educational associations.
    Program Officer means a CSREES individual who is responsible for 
the technical oversight of the award on behalf of USDA.
    Project means the particular activity within the scope of the 
program supported by a grant award.
    Project Director or PD means the single individual designated by 
the grantee in the grant application and approved by the Authorized 
Departmental Officer who is responsible for the direction and 
management of the project, also known as a Principal Investigator (PI) 
for research activities.
    Project period means the total length of time, as stated in the 
award document and modifications thereto, if any, during which Federal 
sponsorship begins and ends.
    Research means any systematic study directed toward new or fuller 
knowledge and understanding of the subject studied.
    Scientific peer review is an evaluation of the technical quality of 
a proposed project and its relevance to regional or national goals, 
performed by experts with the scientific knowledge and technical skills 
to conduct the proposed research work.
    Secretary means the Secretary of Agriculture and any other officer 
or employee of the Department to whom the authority involved is 
delegated.
    State means any one of the fifty States, the District of Columbia, 
and the insular areas.
    Third party in-kind contributions means the value of non-cash 
contributions of property or services provided by non-Federal third 
parties, including real property, equipment, supplies and other 
expendable property, directly benefiting and specifically identifiable 
to a funded project or program.
    United States means the several States, the District of Columbia, 
and the insular areas.
    Units of State government means all State institutions, including 
the formal divisions of State government (i.e., the official state 
agencies such as departments of transportation and education), local 
government agencies (e.g., a county human services office), and 
including state educational institutions (e.g., public colleges and 
universities).


Sec.  3430.3  Deviations.

    Any request by the applicant or grantee for a waiver or deviation 
from any provision of this part shall be submitted to the ADO 
identified in the agency specific requirements. CSREES shall review the 
request and notify the applicant/grantee whether the request to deviate 
has been approved within 30 calendar days from the date of receipt of 
the deviation request. If the deviation request is still under 
consideration at the end of 30 calendar days, CSREES shall inform the 
applicant/grantee in writing of the date when the applicant/grantee may 
expect the decision.


Sec.  3430.4  Other applicable statutes and regulations.

    Several Federal statutes and regulations apply to grant 
applications considered for review and to project grants awarded under 
CSREES grant programs. These include, but are not limited to:

    7 CFR Part 1, subpart A--USDA implementation of the Freedom of 
Information Act.
    7 CFR Part 3--USDA implementation of OMB Circular No. A-129, 
regarding debt management.
    7 CFR Part 15, subpart A--USDA implementation of Title VI of the 
Civil Rights Act of 1964, as amended.
    7 CFR Part 331 and 9 CFR Part 121--USDA implementation of the 
Agricultural Bioterrorism Protection Act of 2002.
    7 CFR Part 3015--USDA Uniform Federal Assistance Regulations, 
implementing OMB directives (i.e., OMB Circular Nos. A-21 and A-122, 
now codified at 2 CFR Parts 220) and incorporating provisions of 31 
U.S.C. 6301-6308 (formerly the Federal Grant and Cooperative 
Agreement Act of 1977, Pub. L. 95-224), as well as general policy 
requirements applicable to grantees of Departmental financial 
assistance.
    7 CFR Part 3017--USDA implementation of Governmentwide Debarment 
and Suspension (Nonprocurement) and Governmentwide Requirements for 
Drug Free Workplace (Grants).
    7 CFR Part 3018--USDA implementation of Restrictions on 
Lobbying. Imposes prohibitions and requirements for disclosure and 
certification related to lobbying on grantees of Federal contracts, 
grants, cooperative agreements, and loans.
    7 CFR Part 3019--USDA implementation of OMB Circular No. A-110, 
Uniform Administrative Requirements for Grants and Other Agreements 
with Institutions of Higher Education, Hospitals, and Other 
Nonprofit Organizations.
    7 CFR Part 3052--USDA implementation of OMB Circular No. A-133, 
Audits of States, Local Governments, and Nonprofit Organizations.
    7 CFR Part 3407--CSREES procedures to implement the National 
Environmental Policy Act of 1969, as amended. 29 U.S.C. 794 (section 
504, Rehabilitation Act of 1973) and
    7 CFR Part 15b (USDA implementation of statute)--prohibiting 
discrimination based upon physical or mental handicap in Federally 
assisted programs.
    35 U.S.C. 200 et seq.--Bayh-Dole Act, controlling allocation of 
rights to inventions made by employees of small business firms and 
domestic nonprofit organizations, including universities, in 
Federally assisted programs (implementing regulations are contained 
in 37 CFR Part 401).

Subpart B--Pre-Award: Solicitation and Application


Sec.  3430.11  Competition.

    (a) Standards for competition. Except as provided in paragraph (b) 
of this section, CSREES will enter into grants and cooperative 
agreements, unless restricted by statute, only after competition.
    (b) The CSREES ADO and the Agency approving official may make a 
determination in writing that competition is not deemed appropriate for 
a particular transaction. Such

[[Page 44903]]

determination shall be limited to transactions where it can be 
adequately justified that a noncompetitive award is in the best 
interest of the Federal government and necessary to the goals of the 
program.


Sec.  3430.12  Requests for applications.

    (a) For each competitive and noncompetitive non-formula program, 
CSREES will prepare a program solicitation (also called a request for 
applications (RFA); hereafter referred to as RFA in accordance with the 
OMB policy directive, 68 FR 37370-37379 (June 23, 2003), establishing a 
standard format for Federal agency announcements (i.e., program 
solicitations or RFAs) of funding opportunities under programs that 
award discretionary grants or cooperative agreements. This policy 
directive requires the content of the RFA to be organized in a 
sequential manner beginning with overview information followed by the 
full text of the announcement and will apply unless superseded by 
statute or another OMB policy directive. The RFA may include all or a 
portion of the following items:
    (1) Contact information;
    (2) Directions for interested beneficiaries to submit written 
comments in a published program solicitation or RFA;
    (3) CFDA number;
    (4) Legislative authority and background information;
    (5) Purpose, priorities, and fund availability;
    (6) Program-specific eligibility requirements;
    (7) Program-specific restrictions on the use of funds, if 
applicable;
    (8) Matching requirements, if applicable;
    (9) Acceptable types of applications;
    (10) Types of projects to be given priority consideration, 
including maximum anticipated awards and maximum project lengths, if 
applicable;
    (11) Program areas, if applicable;
    (12) Funding restrictions, if applicable;
    (13) Directions for obtaining additional requests for applications 
and application forms;
    (14) Information about how to obtain application forms and the 
instructions for completing such forms;
    (15) Instructions and requirements for submitting applications, 
including submission deadline(s);
    (16) Explanation of the application revaluation process; and
    (17) Specific evaluation criteria used in the review process.
    (b) Where program-specific requirements differ from the 
requirements established in this part, program solicitations will also 
address any such variation(s). Variations may occur in the following:
    (1) Award management guidelines;
    (2) Restrictions on the delegation of fiscal responsibility;
    (3) Required approval for changes to project plans;
    (4) Expected program outputs and reporting requirements, if 
applicable;
    (5) Applicable Federal statutes and regulations;
    (6) Confidential aspects of applications and awards, if applicable;
    (7) Regulatory information; and
    (8) Definitions.


Sec.  3430.13  Letter of intent to submit an application.

    CSREES may request or require that prospective applicants notify 
program staff of their intent to submit an application identified as 
``letter of intent''. If applicable, the request or requirement will be 
included in the RFA, along with directions for the preparation and 
submission of the letter of intent and any relevant deadlines. Entities 
interested in submitting an application for a CSREES grant should 
complete and submit a ``Letter of Intent to Submit an Application'' 
form by the due date specified in the RFA. This form does not obligate 
the applicant in any way, but will provide useful information to CSREES 
in preparing for application review. Applicants that do not submit a 
letter of intent by the specified due date are still allowed to submit 
a grant application by the application due date specified in the RFA, 
unless otherwise specified in the RFA.


Sec.  3430.14  Types of applications; types of grant instruments.

    (a) Types of applications. The type of application acceptable may 
vary by funding opportunity. The RFA will stipulate the type of 
application that may be submitted to CSREES in response to the funding 
opportunity. Applicants may submit the following types of applications 
as specified in the RFA.
    (1) New. An application that is being submitted to CSREES for the 
first time.
    (2) Resubmission. This is a project application that had been 
submitted for consideration under the same program previously but has 
not been approved for an award under the program. For competitive 
programs, this type of application is evaluated, in competition with 
other pending applications in the area to which it is assigned. 
Resubmissions are reviewed according to the same evaluation criteria as 
new applications. In addition, applicants must respond to previous 
panel review summary, unless waived by CSREES.
    (3) Renewal. An application requesting additional funding for a 
period subsequent to that provided by a current award. A renewal 
application competes with all other applications and must be developed 
as fully as though the applicant is applying for the first time. 
Renewal applicants also must have filed a progress report via CRIS, 
unless waived by CSREES.
    (4) Continuation. A noncompeting application for an additional 
funding/budget period within a previously approved project period.
    (5) Revision. An application that proposes a change in the Federal 
Government's financial obligations or contingent liability from an 
existing obligation; or, any other change in the terms and conditions 
of the existing award.
    (6) Resubmitted renewal. This is a project application that has 
been submitted for consideration under the same program previously. 
This type of application has also been submitted for renewal under the 
same program but was not approved. For competitive programs, this type 
of application is evaluated, in competition with other pending 
applications in the area to which it is assigned. Resubmitted renewal 
applications are reviewed according to the same evaluation criteria as 
new applications. Applicants must respond to previous panel review 
summary and file a progress report via CRIS, unless waived by CSREES.
    (b) Types of grant instruments. The following is a list of 
corresponding categories of grant instruments issued by CSREES.
    (1) Standard. This is a grant instrument by which the CSREES agrees 
to support a specified level of effort for a predetermined project 
period without the announced intention of providing additional support 
at a future date.
    (2) Renewal. This is an instrument by which the CSREES agrees to 
provide additional funding under a standard grant as specified in 
paragraph (b)(1) of this section for a project period beyond that 
approved in an original or amended award, provided that the cumulative 
period does not exceed any statutory time limitation of the award.
    (3) Continuation. This is a grant instrument by which the CSREES 
agrees to support a specified level of effort for a predetermined 
period of time with a statement of intention to provide additional 
support at a future date, provided that performance has been 
satisfactory, appropriations are available for this purpose, and 
continued support

[[Page 44904]]

would be in the best interest of the Federal government and the public.
    (4) Supplemental. This is an instrument by which the CSREES agrees 
to provide small amounts of additional funding under a standard, 
renewal, or continuation grant as specified in paragraphs (b)(1), 
(b)(2), and (b)(3) of this section and may involve a short-term 
(usually six months or less) extension of the project period beyond 
that approved in an original or amended award, but in no case may the 
cumulative period of the project, including short term extensions, 
exceed any statutory time limitation of the award.
    (c) Obligation of the Federal government. Neither the acceptance of 
any application nor the award of any project grant shall commit or 
obligate the United States in any way to make any renewal, 
supplemental, continuation or other award with respect to any approved 
application or portion of an approved application.


Sec.  3430.15  Stakeholder input.

    Section 103 (c)(2) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (AREERA) (7 U.S.C. 7613(c)(2)) requires 
the Secretary to solicit and consider input on each program RFA from 
persons who conduct agricultural research, education, and extension for 
use in formulating future RFAs for competitive programs. CSREES will 
provide instructions for submission of stakeholder input in the RFA. 
CSREES will consider any comments received within the specified 
timeframe in the development of the future RFAs for the program.


Sec.  3430.16  Eligibility requirements.

    Program-specific eligibility requirements appear in the subpart 
applicable to each program and in the RFAs. In addition to program-
specific eligibility requirements, grants will be awarded only to 
responsible applicants. Specific management information relating to an 
applicant shall be submitted on a one-time basis, with updates on an 
as-needed basis, as part of the responsibility determination prior to 
award of a grant identified under a specific CSREES program, if such 
information has not been provided previously under this or another 
CSREES program. CSREES will provide copies of forms recommended for use 
in fulfilling these requirements as part of the preaward process. 
Although an applicant may be eligible based on its status as one of 
these entities, there are factors which may exclude an applicant from 
receiving Federal financial and nonfinancial assistance and benefits 
under a CSREES program (e.g., debarment or suspension of an individual 
involved or a determination that an applicant is not responsible based 
on submitted organizational management information).


Sec.  3430.17  Content of an application.

    The RFA provides instructions about how to access a funding 
opportunity. The funding opportunity contains the application package, 
which includes the forms necessary for completion of an application in 
response to the RFA, as well as the application instructions. The 
application instructions document, ``A Guide for the Preparation and 
Submission of CSREES Applications via Grants.gov,'' is intended to 
assist applicants in the preparation and submission of applications to 
CSREES. It is also the primary document for use in the preparation of 
CSREES applications via Grants.gov.


Sec.  3430.18  Submission of an application.

    (a) When to submit. The RFA will provide deadlines for the 
submission of letters of intent, if requested and required, and 
applications. CSREES may issue separate RFAs and/or establish separate 
deadlines for different types of applications, different grant 
instruments, different topics or phases of the grant programs. If 
applications are not received by applicable deadlines, they will not be 
considered for funding. Exceptions will only be considered when 
extenuating circumstances exist and justification and supporting 
documentation are provided to CSREES.
    (b) What to submit. The contents of the applicable application 
package, as well as any other information, is to be submitted by the 
due date.
    (c) Where to submit. The RFA will provide addresses for submission 
of letters of intent, if requested or required. It will also indicate 
permissible methods of submission (i.e., electronic, e-mail, hand-
delivery, U.S. Postal Service, courier). Conformance with preparation 
and submission instructions is required and will be strictly enforced 
unless a deviation had been approved in advance of application 
submission. CSREES may establish additional requirements. CSREES may 
return without review applications that are not consistent with the RFA 
instructions.


Sec.  3430.19  Resubmission of an application.

    (a) Previously unfunded applications. (1) Applications that are 
resubmitted to a program, after being previously submitted but not 
funded by that program, must include the following information:
    (i) The CSREES-assigned proposal number of the previously submitted 
application;
    (ii) Summary of the previous reviewers' comments; and
    (iii) Explanation of how the previous reviewers' comments or 
previous panel summary have been addressed in the current application.
    (2) Resubmitting an application that has been revised based on 
previous reviewers' critiques does not guarantee the application will 
be recommended for funding.
    (b) Previously funded applications. (1) CSREES competitive programs 
are generally not designed to support multiple grant awards activities 
that are essentially repetitive in nature. PDs who have had their 
projects funded previously are discouraged from resubmitting relatively 
identical applications for further funding. Applications that are 
sequential continuations or new stages of previously funded projects 
must compete with first-time applications, and should thoroughly 
demonstrate how the proposed project expands substantially on 
previously funded efforts and promotes innovation and creativity beyond 
the scope of the previously funded project.
    (2) An application may be submitted only once to CSREES. The 
submission of duplicative or substantially similar applications 
concurrently for review by more than one program will result in the 
exclusion of the redundant applications from CSREES consideration.


Sec.  3430.20  Acknowledgment of an application.

    The receipt of all letters of intent and applications will be 
acknowledged by CSREES. Applicants who do not receive an 
acknowledgement within a certain number of days (as established in the 
RFA, e.g., 30 and 60 days) of the submission deadline should contact 
the program contact. Once the application has been assigned a proposal 
number by CSREES, that number should be cited on all future 
correspondence.


Sec.  3430.21  Confidentiality of applications and awards.

    (a) Names of submitting institutions and individuals, as well as 
application content and evaluations, will be kept confidential, except 
to those involved in the review process, to the extent permissible by 
law.
    (b) If an application contains proprietary information that 
constitutes a trade secret, proprietary commercial or financial 
information, confidential personal information, or data affecting the 
national security, it will be treated

[[Page 44905]]

in confidence to the extent permitted by law, provided the information 
is clearly marked by the proposer with the term ``confidential and 
proprietary information'' and provided at the bottom of the project 
narrative or any other attachment included in the application that 
contains such information: ``The following pages (specify) contain 
proprietary information which (name of proposing organization) requests 
not to be released to persons outside the Government, except for 
purposes of evaluation.''
    (c) By law, USDA is required to make the final decisions as to 
whether the information is required to be kept in confidence. 
Information contained in unsuccessful applications will remain the 
property of the proposer. However, USDA will retain for three years one 
file copy of each application received; extra copies will be destroyed. 
Public release of information from any application submitted will be 
subject to existing legal requirements. Any application that is funded 
will be considered an integral part of the award and normally will be 
made available to the public upon request, except for designated 
proprietary information that is determined by USDA to be proprietary 
information.
    (d) The inclusion of proprietary information is discouraged unless 
it is necessary for the proper evaluation of the application. If 
proprietary information is to be included, it should be limited, set 
apart from other text on a separate page, and keyed to the text by 
numbers. It should be confined to a few critical technical items that, 
if disclosed, could jeopardize the obtaining of foreign or domestic 
patents. Trade secrets, salaries, or other information that could 
jeopardize commercial competitiveness should be similarly keyed and 
presented on a separate page. Applications or reports which attempt to 
restrict dissemination of large amounts of information may be found 
unacceptable by USDA and constitute grounds for return of the 
application without further consideration. Without assuming any 
liability for inadvertent disclosure, USDA will limit dissemination of 
such information to its employees and, where necessary for the 
evaluation of the application, to outside reviewers on a confidential 
basis. An application may be withdrawn at any time prior to the final 
action thereon.

Subpart C--Pre-Award: Application Review and Evaluation


Sec.  3430.31  Guiding principles.

    The guiding principle for grant application review and evaluation 
is to ensure that each proposal is treated in a consistent and fair 
manner regardless of regional and institutional affiliation. After the 
evaluation process by the review panel, the CSREES through the program 
officer ensures that applicants receive appropriate feedback and 
comments on their proposals, and processes the awards in as timely a 
manner as possible.


Sec.  3430.32  Preliminary application review.

    Prior to technical examination, a preliminary review will be made 
of all applications for responsiveness to the administrative 
requirements set forth in the RFA. Applications that do not meet the 
administrative requirements may be eliminated from program competition. 
However, USDA retains the right to conduct discussions with applicants 
to resolve technical and/or budget issues, as deemed necessary by USDA.


Sec.  3430.33  Selection of reviewers.

    (a) Requirement. CSREES is responsible for performing a review of 
applications submitted to CSREES competitive award programs in 
accordance with section 103(a) of the Agricultural Research, Extension, 
and Education Reform Act of 1998 (7 U.S.C. 7613(a)). Reviews are 
undertaken to ensure that projects supported by CSREES are of high 
quality and are consistent with the goals and requirements of the 
funding program. Applications submitted to CSREES undergo a 
programmatic evaluation to determine the worthiness of Federal support. 
The evaluations consist of a peer panel review and also may entail an 
assessment by Federal employees and ad hoc reviewers.
    (b) CSREES Peer Review System. The CSREES Application Review 
Process is accomplished through the use of the CSREES Peer Review 
System (PRS), a web-based system which allows reviewers and potential 
reviewers to update personal information and to complete and submit 
reviews electronically to CSREES.
    (c) Relevant training and experience. Reviewers will be selected 
based upon training and experience in relevant scientific, extension, 
or education fields taking into account the following factors:
    (1) Level of relevant formal scientific, technical education, and 
extension experience of the individual, as well as the extent to which 
an individual is engaged in relevant research, education, or extension 
activities;
    (2) Need to include as reviewers experts from various areas of 
specialization within relevant scientific, education, and extension 
fields;
    (3) Need to include as reviewers other experts (e.g., producers, 
range or forest managers/operators, and consumers) who can assess 
relevance of the applications to targeted audiences and to program 
needs;
    (4) Need to include as reviewers experts from a variety of 
organizational types (e.g., colleges, universities, industry, state and 
Federal agencies, private profit and nonprofit organizations) and 
geographic locations;
    (5) Need to maintain a balanced composition of reviewers with 
regard to minority and female representation and an equitable age 
distribution; and
    (6) Need to include reviewers who can judge the effective 
usefulness to producers and the general public of each application.
    (d) Confidentiality. The identities of reviewers will remain 
confidential to the maximum extent possible. Therefore, the names of 
reviewers will not be released to applicants. If it is possible to 
reveal the names of reviewers in such a way that they cannot be 
identified with the review of any particular application, this will be 
done at the end of the fiscal year or as requested. Names of submitting 
institutions and individuals, as well as application content and peer 
evaluations, will be kept confidential, except to those involved in the 
review process, to the extent permitted by law. Reviewers are expected 
to be in compliance with CSREES Confidentiality Guidelines. Reviewers 
provide this assurance through PRS.
    (e) Conflicts of interest. During the evaluation process, extreme 
care will be taken to prevent any actual or perceived conflicts of 
interest that may impact review or evaluation. For the purpose of 
determining conflicts of interest, the academic and administrative 
autonomy of an institution shall be determined. Reviewers are expected 
to be in compliance with CSREES Conflict-of-interest Guidelines. 
Reviewers provide this assurance through PRS.


Sec.  3430.34  Evaluation criteria.

    (a) To ensure any project receiving funds from CSREES is consistent 
with the broad goals of the funding program, the content of each 
proposal/application submitted to CSREES will be evaluated based on a 
pre-determined set of review criteria. It is the responsibility of the 
Program Officer to develop, adopt, adapt, or otherwise establish the 
criteria by which proposals are to be evaluated. It may be appropriate 
for the Program Officer to involve other scientists or stakeholders in 
the development of criteria, or to extract criteria from legislative 
authority or appropriations

[[Page 44906]]

language. The review criteria is described in the RFA and shall not 
include criteria concerning any cost sharing or matching requirements 
per section 7301 of the Food, Conservation, and Energy Act of 2008.
    (b) In order that all potential applicants for a program have 
similar opportunities to compete for funds, all reviewers will receive 
from the Program Officer a description of the review criteria. 
Reviewers are instructed to use those same evaluation criteria, and 
only those criteria, to judge the merit of the proposals they review.


Sec.  3430.35  Review of noncompetitive applications.

    (a) Some projects are directed by either authorizing legislation 
and/or appropriations to specifically support a designated institution 
or set of institutions for particular research, education or extension 
topics of importance to the nation, a State or a region. Although these 
projects may be awarded noncompetitively, these projects or activities 
are subject to the same application process, award terms and 
conditions, Federal assistance laws and regulations, reporting and 
monitoring requirements, and post-award administration and closeout 
policies and procedures as competitive grant programs. The only 
difference is these applications are not subject to a competitive peer 
review process at the Agency level.
    (b) All noncompetitive applications recommended for funding are 
required to be merit reviewed and the merit review documented by the 
CSREES program official. For awards recommended for funding at or 
greater than $10,000, an independent and unit merit review are 
required.


Sec.  3430.36  Procedures to minimize or eliminate duplication of 
effort.

    CSREES may implement appropriate business processes to minimize or 
eliminate the awarding of CSREES grants that unnecessarily duplicate 
activities already being sponsored under other grant awards, including 
awards made by other Federal agencies. Business processes may include 
the review of the Current and Pending Support Form; documented CRIS 
searches prior to award; the conduct of project director (PD) 
workshops, conferences, meetings, and symposia; and agency 
participation in Federal government-wide and other committees, 
taskforces, or groups that seek to solve problems related to 
agricultural research, education, and extension and other activities 
delegated to the CSREES administrator.


Sec.  3430.37  Feedback to applicants.

    Copies of individual reviews and/or summary reviews, not including 
the identity of reviewers, will be sent to the applicant PDs after the 
review process has been completed.

Subpart D--Award


Sec.  3430.41  Administration.

    (a) General. Within the limit of funds available for such purpose, 
the CSREES ADO shall make grants to those responsible, eligible 
applicants whose applications are judged most meritorious under the 
procedures set forth in the RFA. The date specified by the CSREES ADO 
as the effective date of the grant shall be no later than September 30 
of the Federal fiscal year in which the project is approved for support 
and funds are appropriated for such purpose, unless otherwise permitted 
by law. It should be noted that the project need not be initiated on 
the grant effective date, but as soon thereafter as practical so that 
project goals may be attained within the funded project period. All 
funds granted by CSREES shall be expended solely for the purpose for 
which the funds are granted in accordance with the approved application 
and budget, the regulations, the terms and conditions of the award, the 
applicable Federal cost principles, and the Department's assistance 
regulations (7 CFR parts 3015 and 3019).
    (b) Organizational management information. Specific management 
information relating to an applicant shall be submitted on a one-time 
basis as part of the responsibility determination prior to the award of 
a grant, if such information has not been provided previously to 
CSREES. CSREES will provide copies of forms recommended for use in 
fulfilling these requirements as part of the preaward process.
    (c) Notice of Award. The notice of award document (i.e., Form 
CSREES-2009, Award Face Sheet) will provide pertinent instructions and 
information including, at a minimum, the following:
    (1) Legal name and address of performing organization or 
institution to whom the Administrator has awarded a grant;
    (2) Title of project;
    (3) Name(s) and institution(s) of Project Director(s);
    (4) Identifying award number assigned by CSREES or the Department;
    (5) Project period;
    (6) Total amount of CSREES financial assistance approved;
    (7) Legal authority(ies) under which the grant is awarded;
    (8) Appropriate CFDA number;
    (9) Approved budget plan or referenced thereof; and
    (10) Other information or provisions (including the Terms and 
Conditions) deemed necessary by CSREES to carry out its respective 
granting activities or to accomplish the purpose of a particular grant.
    (d) Other terms and conditions. CSREES may, with respect to any 
grant, impose additional conditions prior to or at the time of any 
award when, in the CSREES' judgment, such conditions are necessary to 
assure or protect advancement of the approved project, the interests of 
the public, or the conservation of grant funds.

Subpart E--Post-Award and Closeout


Sec.  3430.51  Payment.

    (a) All payments will be made in advance unless a deviation is 
accepted (see Sec.  3430.3) or as specified in paragraph (b) of this 
section. All payments to the grantee shall be made via the U.S. 
Department of Health and Human Services' Payment Management System 
(DHHS-PMS) or another electronic funds transfer (EFT) method except for 
awards to other Federal agencies. Grantees are expected to request 
funds via DHHS-PMS for reimbursement basis in a timely manner.
    (b) If CSREES has determined that advance payment is not feasible 
and that the grantee does not maintain or demonstrate the willingness 
to maintain: Written procedures that minimize the time elapsing between 
the transfer of funds and disbursement by the grantee, and financial 
management systems that meet the standards for fund control and 
accountability as established in Sec.  3430.61; CSREES shall use the 
reimbursement method.


Sec.  3430.52  Cost sharing and matching.

    (a) General. Grantees may be required to match the Federal funds 
received under a CSREES grant. The required percentage of matching, 
type of matching (e.g., cash and/or in-kind contributions), sources of 
match (e.g., non-Federal), and whether CSREES has any authority to 
waive the match will be specified in the subpart applicable to the 
specific grant program, as well as in the RFA.
    (b) Indirect Costs. Grantees' matching contribution may also 
include unrecoverable indirect costs. Such costs may be accepted as 
part of the grantee's resource contribution provided the total amount 
of indirect cost claimed under the Federal and non-Federal portions of 
the costs, when combined, do not exceed the applicant's negotiated

[[Page 44907]]

indirect cost rate or if applicable, the statutory cap on indirect 
costs. Indirect costs provisions for each specific grant program are 
identified in the ``Funding restrictions'' section of the subpart for 
each individual grant program.


Sec.  3430.53  Program income.

    (a) CSREES shall apply the standards set forth in this section in 
requiring grantee organizations to account for program income related 
to projects financed in whole or in part with Federal funds.
    (b) Unless otherwise provided in the authorizing statute, program 
income earned during the project period shall be retained by the 
grantee and, in accordance with the terms and conditions of the award, 
shall be added to funds committed to the project by CSREES and grantee 
and used to further eligible project or program objectives. Any 
specific program deviations will be identified in the individual 
subparts.
    (c) Unless the program regulations identified in the individual 
subpart provide otherwise, grantees shall follow the terms and 
conditions of the award.


Sec.  3430.54  Technical reporting.

    (a) Requirement. All projects supported with Federal funds under 
this part must be documented in the Current Research Information System 
(CRIS).
    (b) Initial Documentation in the CRIS Database. Information 
collected in the ``Work Unit Description'' (Form AD-416) and ``Work 
Unit Classification'' (Form AD-417) is required upon project initiation 
for all new awards in CRIS (i.e., prior to award).
    (c) Annual CRIS Reports. Unless stated differently in the grant 
terms and conditions, an annual ``Accomplishments Report'' (Form AD-
421) is due 90 calendar days after the award's anniversary date (i.e., 
one year following the month and day of which the project period begins 
and each year thereafter up until a final report is required). An 
annual report covers a one-year period. In addition to the Form AD-421, 
the following information, when applicable, must be submitted to the 
programmatic contact person identified in block 4 of the Award Face 
Sheet (Form CSREES-2009): A comparison of actual accomplishments with 
the goals established for the reporting period (where the output of the 
project can be expressed readily in numbers, a computation of the cost 
per unit of output should be considered if the information is 
considered useful); the reasons for slippage if established goals were 
not met; and additional pertinent information including, when 
appropriate, analysis and explanation of cost overruns or unexpectedly 
high unit costs. The annual report of ``Funding and Staff Support'' 
(Form AD-419) is due February 1 of the year subsequent to the Federal 
fiscal year being reported.
    (d) CRIS Final Report. The CRIS final report, ``Accomplishments 
Report'' (Form AD-421), covers the entire period of performance of the 
award. The report should encompass progress made during the entire 
timeframe of the project instead of covering accomplishments made only 
during the final reporting segment of the project. In addition to 
providing the information required under paragraph (c) of this section, 
the final report must include the following when applicable: A 
disclosure of any inventions not previously reported that were 
conceived or first actually reduced to practice during the performance 
of the work under the award; a written statement on whether or not the 
awardee elects (or plans to elect) to obtain patent(s) on any such 
invention; and identify equipment purchased with any Federal funds 
under the award and indicate subsequent use of such equipment.
    (e) CRIS Web Site Via Internet. The CRIS database is available to 
the public on the World Wide Web. CRIS project information is available 
via the Internet CRIS Web site at http://cris.csrees.usda.gov. To 
submit forms electronically, the CRIS forms Web site can be accessed 
through the CRIS Web site or accessed directly at http://csf.uvm.edu/cris.
    (f) Grantees may be required to submit other technical reports or 
submit the CRIS reports more frequently than annual. Additional 
requirements for a specific grant program are described in the 
applicable subpart after subpart F and are identified in the RFA. The 
Award Face Sheet (Form CSREES-2009) also will specify these additional 
reporting requirements.


Sec.  3430.55  Financial reporting.

    (a) SF-269, Financial Status Report. Unless stated differently in 
the grant terms and conditions, a SF-269, Financial Status Report, is 
due 90 days after the expiration of the grant and should be submitted 
to the Awards Management Branch (AMB) at Awards Management Branch; 
Office of Extramural Programs, CSREES; U.S. Department of Agriculture; 
STOP 2271; 1400 Independence Avenue, SW.; Washington, DC 20250-2271. 
The awardee shall report program outlays and program income on the same 
accounting basis (i.e., cash or accrual) that it uses in its normal 
accounting system. When submitting a final SF-269, Financial Status 
Report, the total matching contribution, if required, should be shown 
in item 12., Remarks. The final SF-269 must not show any unliquidated 
obligations. If the awardee still has valid obligations that remain 
unpaid when the report is due, it shall submit a provisional report 
(showing the unliquidated obligations) by the due date and a final 
report when all obligations have been liquidated. When submitting a 
provisional report, the awardee shall inform AMB when it expects a 
final report. If AMB waives the requirement for provisional reports, 
the grantee will be so notified. SF-269, Financial Status Reports, must 
be submitted by all grantees, including Federal agencies and national 
laboratories.
    (b) Grants with Required Matching. For grants requiring a matching 
contribution, an annual SF-269, Financial Status Report, is required 
and this requirement will be indicated on the Award Face Sheet, Form 
CSREES-2009, in which case it must be submitted no later than 90 days 
following the end of the Federal fiscal year, September 30th.
    (c) Overdue SF-269, Financial Status Reports. Grantees with overdue 
SF-269, Financial Status Reports, or other required financial report 
(as identified in the grant terms and conditions), will have their 
applicable balances at DHHS-PMS restricted or placed on ``manual 
review,'' which restricts the grantee's ability to draw funds thus 
requiring prior approval from CSREES. If any remaining available 
balances are needed by the grantee, the grantee will be required to 
contact AMB to request permission to draw any additional funds and may 
be required to provide documentation to support the draw.
    (d) SF-272, Federal Cash Transactions Report. Grantees (receiving 
electronic payments through DHHS-PMS) are required to submit their SF-
272, Federal Cash Transactions Report, via the DHHS-PMS by the 
specified dates. Failure to submit this quarterly report by the due 
date may result in funds being restricted by DHHS-PMS. Grantees (not 
receiving payments through DHHS-PMS) may be exempt from this reporting 
requirement.
    (e) Additional reporting requirements. CSREES may require 
additional financial reporting requirements as follows: CSREES may 
require forecasts of Federal cash requirements in the ``Remarks'' 
section of the report; and when practical and deemed necessary, CSREES 
may require grantees to report in the ``Remarks'' section the amount of 
cash advances received in excess of three days (i.e., short narrative 
with explanations of actions taken to reduce

[[Page 44908]]

the excess balances). When CSREES needs additional information or more 
frequent reports, the following will be observed: When additional 
information is needed to comply with legislative requirements, CSREES 
will issue instructions to require grantees to submit such information 
under the ``Remarks'' section of the reports; and CSREES determines 
that a grantee's accounting system is inadequate, additional pertinent 
information to further monitor awards may be obtained upon written 
notice to the grantee until such time as the system is brought up to 
standard. CSREES, in obtaining this information, shall comply with the 
PRA clearance requirements and the implementing regulations codified at 
5 CFR part 1320.


Sec.  3430.56  Project meetings.

    In addition to reviewing (and monitoring the status of) progress 
and final technical reports and financial reports, CSREES program 
officers may use regular and periodic conference calls to monitor the 
grantee's performance as well as PD conferences, workshops, meetings, 
and symposia to not only monitor the grants, but to facilitate 
communication and the sharing of project results. These opportunities 
also serve to eliminate or minimize CSREES funding unneeded duplicative 
project activities. Required attendance at these conference calls, 
conferences, workshops, meetings, and symposia will be identified in 
the RFA and the grantee should develop a proposal accordingly.


Sec.  3430.57  Hearings and appeals.

    (a) Scope of the post-award disputes covered. The disputes covered 
by this section include: Cost disallowances pursuant to the ADO's 
decision (e.g., specific disallowances under an individual grant or as 
the result of an audit report); termination orders; and the final 
settlement amount under a termination.
    (b) Procedures. The grantee should submit a letter to the ADO from 
the applicant's AR, via mail, e-mail, or fax, noting the grantee's 
dispute and identifying the Grants Officer's decision in question, 
giving reasons for a request to review and providing any other material 
pertinent to the request. The letter to the ADO must be dated no later 
than 60 days after the date of the letter notifying the grantee of the 
decision in question. CSREES retains the right to consider requests for 
review after the 60-day period in extenuating circumstances. The ADO 
will review or designate an individual to review the request. A report 
will be prepared with a recommendation within 60 days and forwarded to 
the Deputy Administrator, Office of Extramural Programs for 
disposition.


Sec.  3430.58  Closeout.

    Most CSREES awards are supported with annual appropriations. On 
September 30th of the 5th fiscal year after the period of availability 
for obligation, the funds for these appropriations accounts expire per 
31 U.S.C. 1552 and the account is closed. Funds that have not been 
drawn through DHHS-PMS by the grantee or disbursed through any other 
system or method by August 31st (of the fifth year appropriation) are 
subject to be returned to the U.S. Department of Treasury after that 
date. Please note that the August 31st requirement also applies to 
awards with a 90-day period concluding on a date after September 30th 
of that following fifth year. Please note expired appropriations cannot 
be restored after this date. More specific instructions are provided in 
the CSREES award terms and conditions.

Research Programs

Subpart F--Specialty Crop Research Initiative


Sec.  3430.200  Applicability of regulations.

    The regulations in this subpart apply to the program authorized 
under section 412 of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7621 et seq.).


Sec.  3430.201  Purpose.

    The purpose of this program is to address the critical needs of the 
specialty crop industry by developing and disseminating science-based 
tools to address needs of specific crops and their regions, including: 
Research in plant breeding, genetics, and genomics to improve crop 
characteristics, such as product, taste, quality, and appearance; 
environmental responses and tolerances; nutrient management, including 
plant nutrient uptake efficiency; pest and disease management, 
including resistance to pests and diseases resulting in reduced 
application management strategies; and enhanced phytonutrient content; 
efforts to identify and address threats from pests and diseases, 
including threats to specialty crop pollinators; efforts to improve 
production efficiency, productivity, and profitability over the long 
term (including specialty crop policy and marketing); new innovations 
and technology, including improved mechanization and technologies that 
delay or inhibit ripening; and methods to prevent, detect, monitor, 
control, and respond to potential food safety hazards in the production 
and processing of specialty crops, including fresh produce. CSREES will 
award research and extension, including integrated grants to eligible 
institutions listed in Sec.  3430.203. In addition to the focus areas 
defined in this section, CSREES may include additional activities or 
focus areas that will further address the critical needs of the 
specialty crop industry. Some of these activities or focus areas may be 
identified by stakeholder groups or by USDA in response to emerging 
critical needs of the specialty crop industry.


Sec.  3430.202  Definitions.

    The definitions applicable to the program under this subpart 
include:
    Integrated means for the purposes of this program to incorporate 
the research and extension components of the agricultural knowledge 
system around a problem area or activity.
    Specialty crop means fruits and vegetables, tree nuts, dried 
fruits, and horticulture and nursery crops (including floriculture).


Sec.  3430.203  Eligibility.

    Eligible applicants for the grant program implemented under this 
subpart include: Federal agencies; national laboratories; colleges and 
universities; research institutions and organizations; private 
organizations or corporations; State agricultural experiment stations; 
individuals; and groups consisting of 2 or more entities identified in 
this sentence. To be eligible under this part, individuals must be a 
citizen or national of the United States as defined in Sec.  3430.2 of 
this part. Eligible institutions do not include foreign and 
international organizations, unless otherwise provided in the RFA.


Sec.  3430.204  Project types and priorities.

    For each RFA, CSREES may develop and include the appropriate 
project types and focus areas (in addition to the five activities or 
focus areas identified in 3430.201) based on the critical needs of the 
specialty crop industry as identified through stakeholder input and 
deemed appropriate by CSREES. Of the funds made available each fiscal 
year, not less than 10 percent of these funds shall be allocated for 
each activity or focus area identified in Sec.  3430.201. In making 
awards for this program, USDA will give higher priority to projects 
that are multistate, multi-institutional, and multidisciplinary; and 
include explicit mechanisms to communicate the results to producers and 
the public.

[[Page 44909]]

Sec.  3430.205  Funding restrictions.

    Funds made available under this subpart shall not be used for the 
construction of a new building or facility or the acquisition, 
expansion, remodeling, or alteration of an existing facility (including 
site grading and improvement, and architect fees). Indirect costs are 
subject to NARETPA section 1462(a) limiting indirect costs to 22 
percent of the total Federal funds provided under each award unless 
superseded by another authority. The maximum allowed indirect cost of 
22 percent may be claimed under the Federal portion of the award 
budget, or the maximum allowed indirect cost of 22 percent may be 
claimed as a matching contribution (if no indirect costs are requested 
on the Federal portion of the budget). However, the maximum allowed 
indirect cost of 22 percent may not be claimed on both the Federal 
portion of the budget for the award and as a matching contribution; but 
a grantee may, for example, request 11 percent of indirect costs on 
both the Federal portion of the budget for the award and as a matching 
contribution. Or, a grantee may request any other, similar percentage 
combination that, when combined, does not exceed a maximum indirect 
cost rate of 22 percent.


Sec.  3430.206  Matching requirements.

    Grantees are required to provide funds or in-kind support from non-
Federal sources in an amount that is at least equal to the amount 
provided by the Federal government. The matching contribution must be 
provided from non-Federal sources except when authorized by statute. 
The matching requirements under this subpart cannot be waived.

    Signed at Washington, DC, on July 28, 2008.
Colien Hefferan,
Administrator, Cooperative State Research, Education, and Extension 
Service.
[FR Doc. E8-17594 Filed 7-31-08; 8:45 am]
BILLING CODE 3410-22-P