Competitive and Noncompetitive Non-Formula Federal Assistance Programs-General Award Administrative Provisions and Program-Specific Administrative Provisions for the Specialty Crop Research Initiative, 45736-45752 [E9-21264]

Agencies

• DEPARTMENT OF AGRICULTURE
• Cooperative State Research, Education, and Extension Service

[Federal Register Volume 74, Number 171 (Friday, September 4, 2009)]
[Rules and Regulations]
[Pages 45736-45752]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-21264]


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DEPARTMENT OF AGRICULTURE

Cooperative State Research, Education, and Extension Service

7 CFR Part 3430

RIN 0524-AA28


Competitive and Noncompetitive Non-Formula Federal Assistance 
Programs--General Award Administrative Provisions and Program-Specific 
Administrative Provisions for the Specialty Crop Research Initiative

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

ACTION: Final rule.

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SUMMARY: The Cooperative State Research, Education, and Extension 
Service (CSREES) is publishing as a final rule one set of 
administrative requirements that contain elements common to all of the 
competitive and noncompetitive non-formula Federal assistance programs 
the Agency administers. In a relatively short period of time, this 
allows CSREES to apply basic rules to Federal assistance programs that 
had been operating without them, including new non-formula Federal 
assistance programs created by the enactment of the Food, Conservation, 
and Energy Act of 2008 (FCEA) and to efficiently implement changes to 
programs with existing regulations as required by FCEA. The provisions 
in subparts A through E serve as a single Agency resource codifying 
current practices simply and coherently for almost all CSREES 
competitive and noncompetitive non-formula Federal assistance programs 
except the Small Business Innovation Research (SBIR) Program and the 
Veterinary Medicine Loan Repayment Program (VMLRP). As specific rules 
are developed for each CSREES Federal assistance program, CSREES will 
propose adding a subpart for that Federal assistance program to this 
regulation. This final rule is published with a first set of program-
specific Federal assistance regulations as subpart F for the Specialty 
Crop Research Initiative, authorized under section 412 of the 
Agricultural Research, Extension, and Education Reform Act of 1998, as 
added by section 7311 of FCEA.

DATES: Effective Date: September 4, 2009, except that Sec. Sec.  
3430.56 and 3430.58(b) shall apply only to a grant or cooperative 
agreement awarded on or after September 4, 2009 or to a grant or 
cooperative agreement awarded prior to that date that receives 
additional funds

[[Page 45737]]

from the awarding agency on or after that date.

FOR FURTHER INFORMATION CONTACT: Ellen Danus, Chief, Policy and 
Oversight Branch, 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: 202-205-5667; Fax: 202-401-7752; E-mail: 
edanus@csrees.usda.gov.

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. 3316). 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 Federal 
assistance process while meeting the ever-increasing accountability and 
transparency standards.

Context

    CSREES has published administrative provisions specific to some of 
the non-formula Federal assistance programs it administers. These 
provisions appear in 7 CFR 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. This final rule applies to all 
competitive and noncompetitive non-formula Federal assistance programs 
administered by CSREES (including the programs in 7 CFR parts 3400 
through 3402, 3405, 3406, 3411, and 3415), except for the Small 
Business Innovation Research (SBIR) Program with implementing 
regulations codified at 7 CFR part 3403 and the Veterinary Medicine 
Loan Repayment Program (VMLRP) with implementing regulations codified 
at 7 CFR part 3431. Where the administrative provisions in this 
regulation conflict with existing regulations for CSREES-administered 
non-formula Federal assistance programs (i.e., 7 CFR parts 3400 through 
3402, 3405, 3406, 3411, and 3415), this regulation will supersede.

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 Federal assistance 
programs serve to enhance its accountability and standardize procedures 
across the Federal assistance programs it administers while providing 
transparency to the public. More than thirty Federal assistance 
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 Federal assistance programs and the Federal government-wide 
efforts to standardize and streamline the entire Federal assistance 
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 awardees for consistent and clear Federal 
assistance policies and procedures.
    This rulemaking attempts to solve the problem by addressing the 
elements common to all of the competitive and noncompetitive Federal 
assistance programs CSREES administers. In this way, the Agency is 
applying basic rules to Federal assistance programs that had been 
operating without them and can quickly implement regulations for any 
new program. In addition, this rule serves as a single resource, except 
for the SBIR, VMLRP, and formula grant programs, that codifies current 
processes simply and coherently.
    This final rule allows CSREES to finally document and codify the 
Federal assistance 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 published 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; accepted all applications (using 
the SF-424 form families) via Grants.gov; required all competitive and 
noncompetitive non-formula Federal assistance 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. 
This final rule also addresses 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 Payments 
Information Act of 2002 (IPIA) (Pub. L. 107-300), and other oversight 
and monitoring requirements, CSREES seeks 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 
Federal assistance program. However, this would defeat the purposes of 
recent laws, regulations, and Presidential, Departmental, and Agency 
initiatives to standardize and streamline the entire award 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 final 
rule provides clearer, more consistent and effective Federal assistance 
policies and procedures for the awardee that will contribute to more 
efficient and effective program delivery and potentially result in less 
audit findings and disallowed costs. The Agency expects this final rule 
to contribute to and facilitate more consistent processes across 
Federal assistance 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, awardees, staff, and the public with one comprehensive set 
of administrative provisions.

[[Page 45738]]

Compliance

    As implemented, applicants who fail to comply with the new 
administrative provisions may not have their applications considered 
for funding by CSREES, may have their award 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 Federal assistance programs. It is anticipated that 
having one set of administrative provisions codified in one part will 
assist applicants and awardees in understanding and complying with 
Federal assistance laws and regulations, as well as the intent of the 
authorizing legislation.

Organization

    CSREES organized the regulation as follows: Subparts A through E 
provide administrative provisions for all competitive and 
noncompetitive non-formula awards. Subparts F and thereafter apply to 
specific CSREES programs.
    CSREES is, to the extent practical, using the following subpart 
template for each program authority: (1) Applicability of regulations; 
(2) purpose; (3) definitions (those in addition to or different from 
Sec.  3430.2); (4) eligibility; (5) project types and priorities; (6) 
funding restrictions; and (7) matching requirements. Subparts F and 
thereafter contain the above seven components in this order, to the 
extent practical. 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 final rulemaking includes the program-
specific rules as subpart F for the Specialty Crop Research Initiative 
(SCRI), which is authorized under section 412 of the Agricultural 
Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7632), 
as added by section 7311 of FCEA.
    Through this program-specific regulation under subpart F, Sec.  
3430.202, CSREES is defining ``integrated project,'' ``specialty 
crop,'' and ``trans-disciplinary.'' Subpart F, at Sec.  3430.203, also 
specifies the eligible program applicants. Section 3430.204 provides 
that CSREES can develop and implement new activities and focus areas 
not identified in Sec.  3430.201 based on input provided by 
stakeholders and as determined by CSREES. Section 3430.205 states the 
specific program funding restrictions and provides that, subject to 
Sec.  3430.54, indirect costs are allowable. Section 3430.206 states 
the specific matching requirements for this program, that these 
matching requirements cannot be waived, and that use of indirect costs 
as in-kind matching contributions is subject to Sec.  3430.52. Section 
3430.207 states that the term of a SCRI grant shall not exceed 10 
years.

II. Response to Comments and Revisions Included in Final Rule

Response to Comments

    On August 1, 2008, CSREES published 7 CFR 3430, subparts A through 
F, as an interim rule with a request for comments. CSREES received four 
comments on the interim rule during the 90-day comment period from the 
following organizations: American Society for Horticulture Science; 
Farm Bill Implementation Assistance Committee, National Association of 
State Universities and Land-Grant Colleges (NASULGC); Purdue 
University; and The Council on Government Relations, which submitted a 
joint statement with NASULGC. All four comments focused on the 100 
percent matching requirement for the SCRI program and the institutions' 
inability to use unrecovered indirect costs in excess of the statutory 
cap of 22 percent as part of the matching contribution for the Federal 
funds awarded. Three of the organizations were speaking on behalf of 
their member institutions. With the application of these regulations, 
many of the institutions felt that they were, in essence, contributing 
more than half of the cost of the project effort and that CSREES was 
misinterpreting and misapplying the U.S. Office of Management and 
Budget (OMB) Federal assistance circulars as well as Federal-wide and 
Departmental assistance regulations.
    In promulgating these regulations, CSREES strived to provide the 
maximum flexibility and to limit both the financial and administrative 
burden to its applicants and awardees while adhering to the intent of 
the legislation and accountability standards. CSREES has determined 
that, absent specific statutory authority, it has no authority to allow 
institutions to use indirect costs in excess of the maximum allowed 
indirect cost rate (e.g., 22 percent for grants, pursuant to 7 U.S.C. 
3310) to satisfy the matching requirement. This has been the 
longstanding policy of CSREES with regard to matching requirements and 
the use of indirect costs as a matching contribution. However, in 
response to the community, Congress enacted section 736 as part of the 
Agriculture, Rural Development, Food and Drug Administration, and 
Related Agencies Appropriations Act, 2009 (Pub. L. 111-8, div. A), to 
allow institutions to use unrecovered indirect costs not otherwise 
charged against the grant toward the matching contribution for the SCRI 
program, consistent with the indirect cost rate approved for the 
recipient. Consequently, because section 736 applies only in FY 2009, 
the appropriate sections of the final rule have not been revised in 
this regard (althoughf Sec. Sec.  3430.52, 3430.205, and 3430.206 have 
been modified as a matter of clarification). This new authority for FY 
2009 is explained, however, in the FY 2009 RFA for this program. 
Subpart F will be revised if and when this provision becomes a 
permanent change to the SCRI authority.
    In addition, Sec.  3430.54 is revised to state that the indirect 
cost rates for grants and cooperative agreements are determined in 
accordance with the applicable assistance regulations and cost 
principles unless superseded by another authority.
    Under applicable assistance regulations and cost principles, the 
negotiated indirect cost rates would apply to both grants and 
cooperative agreements administered by CSREES. However, section 1462(a) 
of NARETPA (7 U.S.C. 3310(a)) establishes a statutory indirect cost 
rate cap of 22 percent for any CSREES grant. Prior to the FCEA 
amendment increasing the cap from 19 to 22 percent, a general provision 
of the annual appropriations act set the indirect cost rate cap for 
competitive grants at 20 percent; however, the Agriculture, Rural 
Development, Food and Drug Administration, and Related Agencies 
Appropriations Act, 2009, did not include that general provision for FY 
2009. The FY 2009 appropriations act did, however, include a general 
provision setting the indirect cost rate cap for cooperative agreements 
to nonprofit institutions (including educational institutions) at 10 
percent for awards supported with these appropriated funds.

Revisions Included in the Final Rule

    This final rule was revised throughout to apply this regulation to 
not only grants but to Federal assistance cooperative agreements, which 
was the original intention in the interim rule.
    Subpart A of the regulation was revised slightly to add definitions 
for award, cooperative agreement, and program announcement to Sec.  
3430.202.

[[Page 45739]]

    Subpart B was revised to clearly define the differences between 
optional and required letters of intent and to clarify the eligibility 
of foreign entities (i.e., individuals and foreign organizations). 
Subpart C was revised to make several minor clarifications regarding 
the type of review for competitive versus noncompetitive awards, and 
subpart D was revised by adding Sec.  3430.42 on special award 
conditions.
    Subpart E was revised to add the U.S. Department of the Treasury's 
Automated Standard Application for Payments (ASAP) system as an 
electronic payment system, as CSREES is currently transitioning to this 
system as part of USDA's implementation of a new accounting system, 
Financial Management Modernization Initiative (FMMI), on October 1, 
2009. Along with this implementation, CSREES is currently exploring 
options for the implementation of the Federal Financial Report (FFR) 
required by October 1, 2009, as CSREES has been using the U.S. 
Department of Health and Human Services' Payment Management System 
(DHHS-PMS) since January 1991. Currently, awardees provide their PSC-
272, Federal Cash Transactions Reports, through the DHHS-PMS. Once the 
business process for the FFR is established, CSREES will revise its 
Terms and Conditions and will update this subpart which will coincide 
with the revisions associated with the establishment of the National 
Institute of Food and Agriculture effective October 1, 2009.
    Subpart E also was revised to make clarifying changes regarding 
indirect cost rates and use of indirect costs as in-kind matching 
contributions (Sec. Sec.  3430.52(b), 3430.54). The previous sections 
on technical reporting (Sec.  3430.54), financial reporting (Sec.  
3430.55), and project meetings (Sec.  3430.56) were renumbered as 
Sec. Sec.  3430.55, 3430.56, and 3430.57, respectively. The previous 
section on hearings and appeals (Sec.  3430.57) was expanded and added 
as a new Sec.  3430.62.
    CSREES also added sections to clarify policies and procedures on 
prior approvals (i.e., subcontracts and no-cost extensions of time) 
(Sec.  3430.58); review of disallowed costs (Sec.  3430.59); 
suspension, termination, and withholding of support (Sec.  3430.60); 
and debt collection (Sec.  3430.61). The previous Sec.  3430.58 was re-
titled ``Expiring appropriations'' from ``Closeout'' (and renumbered as 
Sec.  3430.63) and was expanded to include procedures for Federal 
assistance awards supported with other Federal agencies' funds 
(transferred via an interagency agreement) and to specify that final 
draws need to be executed by no later than June 30th of the final year 
(although the 90-day period beyond the award expiration date is later) 
to allow CSREES to properly bill and close-out the interagency 
agreements before the end of the Federal fiscal year.
    As mentioned earlier and based on USDA Office of Inspector General 
(OIG) audits and annual OMB Circular No. A-123 reviews, CSREES is 
establishing stricter internal controls to ensure that Federal 
assistance funds are no longer available for draw-down to the awardee 
beyond 90 days of the expiration date. In response, CSREES incorporated 
in this final regulation (Sec. Sec.  3430.56, 3430.58) procedures for 
requesting an extension to submit a final SF-269, Financial Status 
Report; for requesting a no-cost extension of time; and for the 
approval of draw requests beyond the 90-day period in extenuating 
circumstances, as determined by CSREES.
    Subpart F was revised in Sec.  3430.203 by removing the reference 
to eligibility of individuals and foreign entities, which is already 
addressed in Sec.  3430.16. Section 3430.205 was revised by removing 
provisions regarding indirect costs, which are addressed in Sec. Sec.  
3430.52 and 3430.54. Also, a new Sec.  3430.207 was added to provide 
that the statutory maximum grant term is 10 years.
    Other technical and clarifying edits are made throughout subparts A 
through F.

III. Future Rulemaking Activities for 7 CFR Part 3430

    CSREES is publishing this rule as final and these regulations apply 
to all CSREES competitive and noncompetitive non-formula programs 
(including the programs implemented by 7 CFR part 3400, Special 
Research Grants Program; 7 CFR part 3401, Rangeland Research 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). Where these 
parts conflict with a provision in this rule, this rule takes 
precedence. As stated previously, this regulation will not apply to the 
SBIR Program and VMLRP. Within the next three years, CSREES plans to 
cancel all of the existing program-specific regulations identified in 7 
CFR and incorporate these program-specific regulations as separate 
subparts under this part 3430. In addition, CSREES is currently 
drafting a CSREES Grants Policy Manual, which while incorporating the 
regulations under this part, will apply to both grants and Federal 
assistance cooperative agreements and provide more specific 
instructions, detailed explanations, and background for potential 
applicants, awardees, Agency and Departmental staff, and the public.
    Per section 7511 of the FCEA, the Secretary shall establish within 
the Department an agency to be known as the `National Institute of Food 
and Agriculture.' Effective no later than October 1, 2009, the 
Secretary shall transfer the authorities (including all budget 
authorities, available appropriations, and personnel), duties, 
obligations, and related legal and administrative functions of CSREES 
to the National Institute of Food and Agriculture. Consequently, it is 
anticipated that this rule will undergo future regulatory action within 
the next 12 months. At that time, the regulation also will be updated 
to incorporate the implementation of the FFR as well as the Agency's 
implementation of the U.S. Department of the Treasury's ASAP system as 
the Agency's electronic payment management system.

IV. Administrative Requirements

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 final rule will not create a 
serious inconsistency or otherwise interfere with an action taken or 
planned by another agency; nor will it 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 final rule has been reviewed in accordance with the Regulatory 
Flexibility Act of 1980, as amended by the Small Business Regulatory

[[Page 45740]]

Enforcement Fairness Act of 1996, 5 U.S.C. 601-612. The Department 
concluded that the rule will not have a significant economic impact on 
a substantial number of small entities. 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 final 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 final 
rule does not impose any new information requirements; however, the 
burden estimates were increased for existing approved information 
collections associated with this rule due to additional applicants. 
These estimates were 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 final regulation applies to the following Federal assistance 
programs administered by CSREES including 10.200, Grants for 
Agricultural Research--Special Research Grants; 10.206, Grants for 
Agricultural Research--Competitive Research Grants; 10.210, Food and 
Agricultural Sciences National Needs Graduate Fellowship Grants; 
10.215, Sustainable Agriculture Research and Education; 10.216, 1890 
Institution Capacity Building Grants; 10.217, Higher Education 
Challenge Grants; 10.219, Biotechnology Risk Assessment Research; 
10.220, Higher Education Multicultural Scholars Program; 10.221, Tribal 
Colleges Education Equity Grants; 10.223, Hispanic Serving Institutions 
Education Grants; 10.225, Community Food Projects; 10.226, Secondary 
and Two-Year Postsecondary Agriculture Education Challenge Grants; 
10.227, 1994 Institutions Research Program; 10.228, Alaska Native 
Serving and Native Hawaiian Serving Institutions Education Grants; 
10.303, Integrated Programs; 10.304, Homeland Security--Agricultural; 
10.305, International Science and Education Grants; 10.306, Biodiesel; 
10.307, Organic Agriculture Research and Extension Initiative; 10.308, 
Resident Instruction for Insular Area Activities; 10.309, Specialty 
Crop Research Initiative; 10.310, Agriculture and Food Research 
Initiative; 10.311, Beginning Farmer and Rancher Development 
Initiative; 10.312, Biomass Research and Development Initiative; 
10.314, New Era Rural Technology Program; and 10.500, Cooperative 
Extension Service.

Unfunded Mandates Reform Act of 1995 and Executive Order 13132

    The Department has reviewed this final rule in accordance with the 
requirements of Executive Order No. 13132 and the Unfunded Mandates 
Reform 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, or 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 final rule in accordance with 
Executive Order 13175 and has determined that it does not have ``tribal 
implications.'' The final 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.''

Clarity of This Regulation

    Executive Order 12866 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 final rule easier to 
understand.

List of Subjects

    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 revise part 3430 to read 
as follows:

PART 3430--COMPETITIVE AND NONCOMPETITIVE NON-FORMULA FEDERAL 
ASISTANCE PROGRAMS--GENERAL AWARD ADMINISTRATIVE 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 award 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.
3430.42 Special award conditions.
Subpart E--Post-award and Closeout
3430.51 Payment.
3430.52 Cost sharing and matching.
3430.53 Program income.
3430.54 Indirect costs.
3430.55 Technical reporting.
3430.56 Financial reporting.
3430.57 Project meetings.
3430.58 Prior approvals.
3430.59 Review of disallowed costs.
3430.60 Suspension, termination, and withholding of support.
3430.61 Debt collection.
3430.62 Award appeals procedures.
3430.63 Expiring appropriations.
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.

[[Page 45741]]

3430.205 Funding restrictions.
3430.206 Matching requirements.
3430.207 Other considerations.

    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) General. This part provides agency specific regulations 
regarding the application for, and evaluation, award, and post-award 
administration of, Cooperative State Research, Education, and Extension 
Service (CSREES) awards, and is supplementary to the USDA 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. These regulations 
apply to the following types of Federal assistance awards: Grants and 
cooperative agreements.
    (b) Competitive programs. This part applies to all agricultural 
research, education, and extension competitive and related programs for 
which 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 (7 CFR part 3403) and the Veterinary Medicine 
Loan Repayment Program (VMLRP) authorized under section 1415A of the 
National Agricultural Research, Extension, and Teaching Policy Act of 
1977 (NARETPA) (7 U.S.C. 3151a).
    (c) Noncompetitive programs. Subparts A, B, D, and E, as well as 
Sec.  3430.35 of subpart C, 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) Federal assistance programs administered on behalf of other 
agencies. Subparts A through E, as appropriate, apply to competitive 
and noncompetitive grants and cooperative agreements administered on 
behalf of other agencies of the Federal Government. Requirements 
specific to these Federal assistance programs will be included in the 
program solicitations or requests for applications (RFAs).
    (e) Federal assistance programs administered jointly with other 
agencies. Subparts A through E, as appropriate, apply to competitive 
and noncompetitive grants and cooperative agreements administered 
jointly with other agencies of the Federal Government. Requirements 
specific to these Federal assistance 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 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 (7 U.S.C. 343(d)) to the 1862 
Land-Grant Institutions and the 1890 Land-Grant Institutions; extension 
funds under the Renewable Resources Extension Act of 1978 (16 U.S.C. 
1671, et seq.) for the 1862 Land-Grant institutions and the 1890 Land-
Grant Institutions; research funds provided to the 1862 Land-Grant 
Institutions, 1890 Land-Grant Institutions, and forestry schools under 
the McIntire-Stennis Cooperative Forestry Act (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. 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 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 (as established under section 
1408 of NARETPA (7 U.S.C. 3123).
    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 
award 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.
    Award means financial assistance that provides support or 
stimulation to accomplish a public purpose. Awards may be grants or 
cooperative agreements.
    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.
    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

[[Page 45742]]

    (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.
    Cooperative agreement means the award by the Authorized 
Departmental Officer of funds to an eligible awardee 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, and where substantial involvement is expected between CSREES and 
the awardee when carrying out the activity contemplated in the 
agreement.
    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 programs conducted in the States 
in cooperation with the Department.
    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 means basic, applied, and 
developmental research, extension, and teaching activities in food and 
fiber, agricultural, renewable energy and 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, water, and related resource 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 project means a project incorporating 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.
    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.
    Non-citizen national of the United States means 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 U.S. Citizenship 
and Immigration Services as to such eligibility must be made available 
to CSREES upon request.
    Peer reviewers means experts or consultants qualified by training 
and experience to give expert advice on the scientific and technical 
merit of 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 announcement (PA) means a detailed description of the RFA 
without the associated application package(s). CSREES will not solicit 
or accept applications in response to a PA.
    Program Officer means a CSREES individual (often referred to as a 
National Program Leader) who is responsible for the technical oversight

[[Page 45743]]

of the award on behalf of the Department.
    Project means the particular activity within the scope of the 
program supported by an award.
    Project Director or PD means the single individual designated by 
the awardee in the 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 means 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.
    Under Secretary means the Under Secretary for Research, Education, 
and Economics.
    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 awardee for a waiver of 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/awardee, within 30 calendar days from 
the date of receipt of the deviation request, whether the request to 
deviate has been approved. If the deviation request is still under 
consideration at the end of 30 calendar days, CSREES shall inform the 
applicant/awardee in writing of the date when the applicant/awardee may 
expect the decision.


Sec.  3430.4  Other applicable statutes and regulations.

    Several Federal statutes and regulations apply to Federal 
assistance applications considered for review and to project grants and 
cooperative agreements awarded under CSREES Federal assistance 
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, A-87, and A-
122, now relocated at 2 CFR Parts 220, 225, and 230) 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 recipients of Departmental financial 
assistance.
    7 CFR Part 3016--USDA implementation of Administrative Requirements 
for Grants and Cooperative Agreements to State and Local Governments.
    7 CFR Part 3017--USDA implementation of Governmentwide Debarment 
and Suspension (Nonprocurement).
    7 CFR Part 3018--USDA implementation of Restrictions on Lobbying. 
Imposes prohibitions and requirements for disclosure and certification 
related to lobbying on recipients 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 Agreements with 
Institutions of Higher Education, Hospitals, and Other Nonprofit 
Organizations (now relocated at 2 CFR part 215).
    7 CFR Part 3021--USDA implementation of Governmentwide Requirements 
for Drug-Free Workplace (Financial Assistance).
    7 CFR Part 3052--USDA implementation of OMB Circular No. A-133, 
Audits of States, Local Governments, and Non-Profit 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, promoting the utilization of 
inventions arising from federally supported research or development; 
encouraging maximum participation of small business firms in federally 
supported research and development efforts; and promoting collaboration 
between commercial concerns and nonprofit organizations, including 
universities, while ensuring that the Government obtains sufficient 
rights in federally supported inventions to meet the needs of the 
Government and protect the public against nonuse or unreasonable use of 
inventions (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) Exception. The CSREES ADO and the designated Agency approving 
official may make a determination in writing that competition is not 
deemed appropriate for a particular transaction. Such 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) General. For each competitive and noncompetitive non-formula 
program, CSREES will prepare a program solicitation (also called a 
request for applications (RFA)), in accordance with the Office of 
Management and Budget

[[Page 45744]]

(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 stakeholders or beneficiaries to 
submit written comments in a published program solicitation or RFA.
    (3) Catalog of Federal Domestic Assistance (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 evaluation Process.
    (17) Specific evaluation criteria used in the review Process.
    (18) Type of Federal assistance awards (i.e., grants and/or 
cooperative agreements).
    (b) RFA variations. 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.
    (8) Definitions.
    (9) Minimum and maximum budget requests, and whether applications 
outside of these limits will be returned without further review.
    (c) Program announcements. Occasionally, CSREES will issue a 
program announcement (PA) to alert potential applicants and the public 
about new and ongoing funding opportunities. These PAs may provide 
tentative due dates and are released without associated application 
packages. Hence, no applications are solicited under a PA. PAs are 
announced in the Federal Register or on the CSREES Web site.


Sec.  3430.13  Letter of intent to submit an application.

    (a) General. 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, 
the type of letter of intent, and any relevant deadlines. There are two 
types of letters of intent: optional and required.
    (b) Optional letter of intent. Entities interested in submitting an 
application for a CSREES award should complete and submit a ``Letter of 
Intent to Submit an Application'' by the due date specified in the RFA. 
This 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 an application by the application due 
date specified in the RFA, unless otherwise specified in the RFA.
    (c) Required letter of intent. Certain programs may require that 
the prospective applicants submit a letter of intent for specific 
programs. This type of letter is evaluated by the program staff for 
suitability to the program and in regard to program priorities, needs, 
and scope. Invitations to submit a full application will be issued by 
the Program Officer or his or her representative. For programs 
requiring a letter of intent, applications submitted without prior 
approval of the letter of intent by the program staff will be returned 
without review. Programs requiring a specific letter of intent will be 
specified in the RFA.


Sec.  3430.14  Types of applications; types of award 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 the program for 
the first time.
    (2) Resubmission. This is a project application that has 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 the previous 
panel review summaries, unless waived by CSREES.
    (3) Renewal. An application requesting additional funding for a 
period subsequent to that provided by a current award. For competitive 
programs, a renewal application competes with all other applications. 
Renewal applications 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 Current Research Information System (CRIS), 
unless waived by CSREES.
    (4) Continuation. A noncompeting application for an additional 
funding/budget period within a previously approved project.
    (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

[[Page 45745]]

as new applications. Applicants must respond to the previous panel 
review summaries and file a progress report via CRIS, unless waived by 
CSREES.
    (b) Types of award instruments. The following is a list of 
corresponding categories of award instruments issued by CSREES.
    (1) Standard. This is an award instrument by which 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 award instrument by which CSREES agrees to 
provide additional funding under a standard award 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 an award instrument by which 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 would be in the best interest of the Federal 
Government and the public.
    (4) Supplemental. This is an award instrument by which CSREES 
agrees to provide small amounts of additional funding under a standard, 
renewal, or continuation award 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 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.

    (a) General. Program-specific eligibility requirements appear in 
the subpart applicable to each program and in the RFAs.
    (b) Foreign entities--(1) Awards to institutions. Unless 
specifically allowed, foreign commercial and non-profit institutions 
are not considered eligible to apply for and receive CSREES awards.
    (2) Awards to individuals. Unless otherwise specified, only United 
States citizens, non-citizen nationals of the United States, and lawful 
permanent residents of the United States are eligible to apply for and 
receive CSREES awards.
    (c) Responsibility determination. In addition to program-specific 
eligibility requirements, awards will be made 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 an award 
being made 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 pre-award process. Although an applicant 
may be eligible based on its status as one of these entities, there are 
factors that 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 on 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, ``CSREES Grants.gov Application 
Guide: A Guide for 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 award 
instruments, or different topics or phases of the Federal assistance 
programs. If applications are not received by applicable deadlines, 
they will not be considered for funding. Exceptions will be considered 
only when extenuating circumstances exist, as determined by CSREES, 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, are 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, and applications. It 
also will indicate permissible methods of submission (i.e., electronic, 
e-mail, hand-delivery, U.S. Po