[Federal Register Volume 74, Number 171 (Friday, September 4, 2009)]
[Rules and Regulations]
[Pages 45736-45752]
From the Federal Register Online via the Government Publishing 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: 
<a href="/cdn-cgi/l/email-protection#8beeefeae5fef8cbe8f8f9eeeef8a5fef8efeaa5ece4fd"><span class="__cf_email__" data-cfemail="056061646b7076456676776060762b707661642b626a73">[email protected]</span></a>.

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. Postal Service, courier). Conformance with 
preparation and submission instructions is required and will be 
strictly enforced unless a deviation had been approved. 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.
    (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 Federal assistance 
awards

[[Page 45746]]

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., 15 and 30 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) General. Names of submitting institutions and individuals, as 
well as application contents and evaluations, will be kept 
confidential, except to those involved in the review process, to the 
extent permissible by law.
    (b) Identifying confidential and proprietary information in an 
application. 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 in confidence to the extent 
permitted by law, provided that the information is clearly marked by 
the proposer with the term ``confidential and proprietary information'' 
and that the following statement is included 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) Disposition of applications. By law, the Department 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, the 
Department 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 the Department to be proprietary information.
    (d) Submission of proprietary information. 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 that attempt to restrict dissemination of large 
amounts of information may be found unacceptable by the Department and 
constitute grounds for return of the application without further 
consideration. Without assuming any liability for inadvertent 
disclosure, the Department 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 Federal assistance 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, 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, CSREES retains the right to conduct discussions with 
applicants to resolve technical and/or budget issues, as deemed 
necessary by CSREES.


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 AREERA (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 scientific peer review or merit review is performed by peer or 
merit reviewers and also may entail an assessment by Federal employees.
    (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.

[[Page 45747]]

    (5) Need to maintain a balanced composition of reviewers with 
regard to minority and female representation and an equitable age 
distribution.
    (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) General. 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 language. The review 
criteria are described in the RFA and shall not include criteria 
concerning any cost sharing or matching requirements per section 
103(a)(3) of AREERA (7 U.S.C. 7613(a)(3)).
    (b) Guidance for reviewers. 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) General. 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 Federal assistance programs. The 
only difference is these applications are not subject to a competitive 
peer or merit review process at the Agency level.
    (b) Requirements. All noncompetitive applications recommended for 
funding are required to be reviewed by the program officer and, as 
required, other Departmental and CSREES officials; and the review 
documented by the CSREES program officer. For awards recommended for 
funding at or greater than $10,000, an independent review and a unit 
review by program officials 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 Federal assistance that unnecessarily 
duplicates activities already being sponsored under other 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 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 Federal assistance awards 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 award shall be 
no later than September 30th 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 award effective date, but as soon 
thereafter as practical so that project goals may be attained within 
the funded project period. All funds awarded by CSREES shall be 
expended solely for the purpose for which the funds are awarded 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 (e.g., parts 
3015, 3016, and 3019 of 7 CFR).
    (b) 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 or 
cooperative agreement.
    (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 or cooperative 
agreement is awarded.
    (8) Appropriate CFDA number.
    (9) Approved budget plan (that may be referenced).
    (10) Other information or provisions (including the Terms and 
Conditions) deemed necessary by CSREES to carry out its respective 
awarding activities or to accomplish the purpose of a particular grant 
or cooperative agreement.


Sec.  3430.42  Special award conditions.

    (a) General. CSREES may, with respect to any award, impose 
additional conditions prior to or at the time of any award when, in the 
judgment of CSREES, such conditions are necessary

[[Page 45748]]

to ensure or protect advancement of the approved project, the interests 
of the public, or the conservation of grant or cooperative agreement 
funds. CSREES may impose additional requirements if an applicant or 
recipient has a history of poor performance; is not financially stable; 
has a management system that does not meet prescribed standards; has 
not complied with the terms and conditions of a previous award; or is 
not otherwise responsible.
    (b) Notification of additional requirements. When CSREES imposes 
additional requirements, CSREES will notify the recipient in writing as 
to the following: The nature of the additional requirements; the reason 
why the additional requirements are being imposed; the nature of the 
corrective actions needed; the time allowed for completing the 
corrective actions; and the method for requesting reconsideration of 
the additional requirements imposed.
    (c) Form CSREES-2009, Award Face Sheet. These special award 
conditions, as applicable, will be added as a special provision to the 
award terms and conditions and identified on the Form CSREES-2009, 
Award Face Sheet, for the award.
    (d) Removal of additional requirements. CSREES will promptly remove 
any additional requirements once the conditions that prompted them have 
been corrected.

Subpart E--Post-Award and Closeout


Sec.  3430.51  Payment.

    (a) General. 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 awardee shall be made via the 
U.S. Department of Health and Human Services' Payment Management System 
(DHHS-PMS), U.S. Department of the Treasury's Automated Standard 
Application for Payments (ASAP) system, or another electronic funds 
transfer (EFT) method, except for awards to other Federal agencies. 
Awardees are expected to request funds via DHHS-PMS, ASAP, or other 
electronic payment system for reimbursement basis in a timely manner.
    (b) Reimbursement method. CSREES shall use the reimbursement method 
if it determines that advance payment is not feasible and that the 
awardee 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 awardee, and financial management 
systems that meet the standards for fund control and accountability.


Sec.  3430.52  Cost sharing and matching.

    (a) General. Awardees may be required to match the Federal funds 
received under a CSREES award. 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 Federal assistance program, as well as in the RFA.
    (b) Indirect Costs as in-kind matching contributions. Indirect 
costs may be claimed under the Federal portion of the award budget or, 
alternatively, indirect costs may be claimed as a matching contribution 
(if no indirect costs are requested under the Federal portion of the 
award budget). However, unless explicitly authorized in the RFA, 
indirect costs may not be claimed on both the Federal portion of the 
award budget and as a matching contribution, unless the total claimed 
on both the Federal portion of the award budget and as a matching 
contribution does not exceed the maximum allowed indirect costs or the 
institution's negotiated indirect cost rate, whichever is less. An 
awardee may split the allocation between the Federal and non-Federal 
portions of the budget only if the total amount of indirect costs 
charged to the project does not exceed the maximum allowed indirect 
costs or the institution's negotiated indirect cost rate, whichever is 
less. For example, if an awardee's indirect costs are capped at 22 
percent pursuant to section 1462(a) of NARETPA (7 U.S.C. 3310(a)), the 
awardee may request 11 percent of the indirect costs on both the 
Federal portion of the award and as a matching contribution. Or, the 
awardee may request any similar percentage that, when combined, does 
not exceed the maximum indirect cost rate of 22 percent.


Sec.  3430.53  Program income.

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


Sec.  3430.54  Indirect costs.

    Indirect cost rates for grants and cooperative agreements shall be 
determined in accordance with the applicable assistance regulations and 
cost principles, unless superseded by another authority. Use of 
indirect costs as in-kind matching contributions is subject to Sec.  
3430.52(b).


Sec.  3430.55  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 award 
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 on 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 14 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

[[Page 45749]]

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 an identification of 
equipment purchased with any Federal funds under the award and any 
subsequent use of such equipment.
    (e) CRIS Web Site Via Internet. The CRIS database is available to 
the public on the worldwide 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://cwf.uvm.edu/cris.
    (f) Additional reporting requirements. Awardees may be required to 
submit other technical reports or submit the CRIS reports more 
frequently than annually. Additional requirements for a specific 
Federal assistance program are described in the applicable subpart 
after subpart E and are identified in the RFA. The Award Face Sheet 
(Form CSREES-2009) also will specify these additional reporting 
requirements as a special provision to the award terms and conditions.


Sec.  3430.56  Financial reporting.

    (a) SF-269, Financial Status Report. Unless stated differently in 
the award terms and conditions, a final SF-269, Financial Status 
Report, is due 90 days after the expiration of the award 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 the report. 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 request an extension of time 
for submitting the report pursuant to paragraph (c) of this section; 
submit a provisional report (showing the unliquidated obligations) by 
the due date; and submit a final report when all obligations have been 
liquidated, but no later than the approved extension date. SF-269, 
Financial Status Reports, must be submitted by all awardees, including 
Federal agencies and national laboratories.
    (b) Awards with Required Matching. For awards 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 45 days 
following the end of the budget or reporting period.
    (c) Requests for an extension to submit a final SF-269, Financial 
Status Report--(1) Before the due date. Awardees may request, prior to 
the end of the 90-day period following the award expiration date, an 
extension to submit a final SF-269, Financial Status Report. This 
request should include a provisional report pursuant to paragraph (a) 
of this section, as well as an anticipated submission date and a 
justification for the late submission. Subject to Sec.  3430.63 or 
other statutory or agency policy limitations, funds will remain 
available for drawdown during this period.
    (2) After the due date. Requests are considered late when they are 
submitted after the 90-day period following the award expiration date. 
Requests to submit a final SF-269, Financial Status Report, will only 
be considered, up to 30 days after the due date, in extenuating 
circumstances. This request should include a provisional report 
pursuant to paragraph (a) of this section, as well as an anticipated 
submission date, a justification for the late submission, and a 
justification for the extenuating circumstances. However, such requests 
are subject to Sec.  3430.63 or any other statutory or agency policy 
limitations. If an awardee needs to request additional funds, 
procedures in paragraph (d) of this section apply.
    (d) Overdue SF-269, Financial Status Reports. Awardees with overdue 
SF-269, Financial Status Reports, or other required financial reports 
(as identified in the award terms and conditions), will have their 
applicable balances at DHHS-PMS, ASAP, or other electronic payment 
system restricted or placed on ``manual review,'' which restricts the 
awardee's ability to draw funds, thus requiring prior approval from 
CSREES. If any remaining available balances are needed by the awardee 
(beyond the 90-day period following the award expiration date) and the 
awardee has not requested an extension to submit a final SF-269, 
Financial Status Report, the awardee will be required to contact AMB to 
request permission to draw any additional funds and will be required to 
provide justification and documentation to support the draw. Awardees 
also will need to comply with procedures in paragraph (c) of this 
section. AMB will approve these draw requests only in extenuating 
circumstances, as determined by CSREES.
    (e) SF-272, Federal Cash Transactions Report. Awardees 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. Awardees not 
receiving payments through DHHS-PMS may be exempt from this reporting 
requirement.
    (f) 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 awardees 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 the excess balances). When 
CSREES needs additional information or more frequent reports, a special 
provision will be added to the award terms and conditions and 
identified on the Form CSREES-2009, Award Face Sheet. Should CSREES 
determine that an awardee's accounting system is inadequate, additional 
pertinent information to further monitor awards may be requested from 
the awardee until such time as the system is brought up to standard, as 
determined by CSREES. This additional reporting requirement will be 
required via a special provision to the award terms and conditions and 
identified on the Form CSREES-2009, Award Face Sheet.


Sec.  3430.57  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 
awardee's performance as well as PD conferences, workshops, meetings, 
and symposia to not only monitor the awards, but to facilitate 
communication and the sharing of project results. These

[[Page 45750]]

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 awardee should develop a proposal 
accordingly.


Sec.  3430.58  Prior approvals.

    (a) Subcontracts. No more than 50 percent of the award may be 
subcontracted to other parties without prior written approval of the 
ADO except contracts to other Federal agencies. Any subcontract awarded 
to a Federal agency under an award must have prior written approval of 
the ADO. To request approval, a justification for the proposed 
subcontractual arrangements, a performance statement, and a detailed 
budget for the subcontract must be submitted to the ADO.
    (b) No-cost extensions of time--(1) General. Awardees may initiate 
a one-time no-cost extension of the expiration date of the award of up 
to 12 months unless one or more of the following conditions apply: the 
terms and conditions of the award prohibit the extension; the extension 
requires additional Federal funds; and the extension involves any 
change in the approved objectives or scope of the project. For the 
first no-cost extension, the awardee must notify CSREES in writing with 
the supporting reasons and revised expiration date at least 10 days 
before the expiration date specified in the award.
    (2) Additional requests for no-cost extensions of time before 
expiration date. When more than one no-cost extension of time or an 
extension of more than 12 months is required, the extension(s) must be 
approved in writing by the ADO. The awardee should prepare and submit a 
written request (which must be received no later than 10 days prior to 
the expiration date of the award) to the ADO. The request must contain, 
at a minimum, the following information: the length of the additional 
time required to complete the project objectives and a justification 
for the extension; a summary of the progress to date; an estimate of 
the funds expected to remain unobligated on the scheduled expiration 
date; a projected timetable to complete the portion(s) of the project 
for which the extension is being requested; and signature of the AR and 
the PD.
    (3) Requests for no-cost extensions of time after expiration date. 
CSREES may consider and approve requests for no-cost extensions of time 
up to 120 days following the expiration of the award. These will be 
approved only for extenuating circumstances, as determined by CSREES. 
The awardee's AR must submit the requirements identified under 
paragraph (b)(2) of this section as well as an ``extenuating 
circumstance'' justification and a description of the actions taken by 
the awardee to minimize these requests in the future.
    (4) Other requirements. No-cost extensions of time may not be 
exercised merely for the purpose of using unobligated balances. All 
extensions are subject to any statutory term limitations as well as any 
expiring appropriation limitations under Sec.  3430.63.


Sec.  3430.59  Review of disallowed costs.

    (a) Notice. If the CSREES Office of Extramural Programs (OEP) 
determines that there is a basis for disallowing a cost, CSREES OEP 
shall provide the awardee written notice of its intent to disallow the 
cost. The written notice shall state the amount of the cost and the 
factual and legal basis for disallowing it.
    (b) Awardee response. Within 60 days of receiving written notice of 
CSREES OEP's intent to disallow the cost, the awardee may respond with 
written evidence and arguments to show the cost is allowable, or that 
CSREES, for equitable, practical, or other reasons, shall not recover 
all or part of the amount, or that the recovery should be made in 
installments. The 60-day time period may be extended for an additional 
30 days upon written request by the awardee; however, such request for 
an extension of time must be made before the expiration of the 60-day 
time period specified in this paragraph. An extension of time will be 
granted only in extenuating circumstances.
    (c) Decision. Within 60 days of receiving the awardee's written 
response to the notice of intent to disallow the cost, CSREES OEP shall 
issue a management decision stating whether or not the cost has been 
disallowed, the reasons for the decision, and the method of appeal that 
has been provided under this section. If the awardee does not respond 
to the written notice under paragraph (a) of this section within the 
time frame specified in paragraph (b) of this section, CSREES OEP shall 
issue a management decision on the basis of the information available 
to it. The management decision shall constitute the final action with 
respect to whether the cost is allowed or disallowed. In the case of a 
questioned cost identified in the context of an audit subject to 7 CFR 
part 3052, the management decision will constitute the management 
decision under 7 CFR 3052.405(a).
    (d) Demand for payment. If the management decision under paragraph 
(c) of this section constitutes a finding that the cost is disallowed 
and, therefore, that a debt is owed to the Government, CSREES OEP shall 
provide the required demand and notice pursuant to 7 CFR 3.11.
    (e) Review process. Within 60 days of receiving the demand and 
notice referred to in paragraph (d) of this section, the awardee may 
submit a written request to the CSREES OEP Deputy Administrator for a 
review of the final management decision that the debt exists and the 
amount of the debt. Within 60 days of receiving the written request for 
a review, the CSREES OEP Deputy Administrator (or other senior CSREES 
official designated by the CSREES OEP Deputy Administrator) will issue 
a final decision regarding the debt. Review by the CSREES OEP Deputy 
Administrator or designee constitutes, and will be in accordance with, 
the administrative review procedures provided for debts under 7 CFR 
part 3, subpart F.


Sec.  3430.60  Suspension, termination, and withholding of support.

    (a) General. If an awardee has failed to materially comply with the 
terms and conditions of the award, CSREES may take certain enforcement 
actions, including, but not limited to, suspending the award pending 
corrective action, terminating the award for cause, and withholding of 
support.
    (b) Suspension. CSREES generally will suspend (rather than 
immediately terminate) an award to allow the awardee an opportunity to 
take appropriate corrective action before CSREES makes a termination 
decision. CSREES may decide to terminate the award if the awardee does 
not take appropriate corrective action during the period of suspension. 
CSREES may terminate, without first suspending, the award if the 
deficiency is so serious as to warrant immediate termination. 
Termination for cause may be appealed under the CSREES award appeals 
procedures specified in Sec.  3430.62.
    (c) Termination. An award also may be terminated, partially or 
wholly, by the awardee or by CSREES with the consent of the awardee. If 
the awardee decides to terminate a portion of the award, CSREES may 
determine that the remaining portion of the award will not accomplish 
the purposes for which the award was originally made. In any such case, 
CSREES will advise the awardee of the possibility of termination of the 
entire award and allow the awardee to

[[Page 45751]]

withdraw its termination request. If the awardee does not withdraw its 
request for partial termination, CSREES may initiate procedures to 
terminate the entire award for cause.
    (d) Withholding of support. Withholding of support is a decision 
not to make a non-competing continuation award within the current 
competitive segment. Support may be withheld for one or more of the 
following reasons: Adequate Federal funds are not available to support 
the project; an awardee failed to show satisfactory progress in 
achieving the objectives of the project; an awardee failed to meet the 
terms and conditions of a previous award; or for whatever reason, 
continued funding would not be in the best interests of the Federal 
Government. If a non-competing continuation award is denied (withheld) 
because the awardee failed to comply with the terms and conditions of a 
previous award, the awardee may appeal that determination under Sec.  
3430.62.


Sec.  3430.61  Debt collection.

    The collection of debts owed to CSREES by awardees, including those 
resulting from cost disallowances, recovery of funds, unobligated 
balances, or other circumstances, are subject to the Department's debt 
collection procedures as set forth in 7 CFR part 3, and, with respect 
to cost disallowances, Sec.  3430.59.


Sec.  3430.62  Award appeals procedures.

    (a) General. CSREES permits awardees to appeal certain post-award 
adverse administrative decisions made by CSREES. These include: 
termination, in whole or in part, of an award for failure of the 
awardee to carry out its approved project in accordance with the 
applicable law and the terms and conditions of award or for failure of 
the awardee otherwise to comply with any law, regulation, assurance, 
term, or condition applicable to the award; denial (withholding) of a 
non-competing continuation award for failure to comply with the terms 
of a previous award; and determination that an award is void (i.e., a 
decision that an award is invalid because it was not authorized by 
statute or regulation or because it was fraudulently obtained). Appeals 
of determinations regarding the allowability of costs are subject to 
the procedures in Sec.  3430.59.
    (b) Appeal Procedures. The formal notification of an adverse 
determination will contain a statement of the awardee's appeal rights. 
As the first level in appealing an adverse determination, the awardee 
must submit a request for review to the CSREES official specified in 
the notification, detailing the nature of the disagreement with the 
adverse determination and providing supporting documents in accordance 
with the procedures contained in the notification. The awardee's 
request to CSREES for review must be received within 60 days after 
receipt of the written notification of the adverse determination; 
however, an extension may be granted if the awardee can show good cause 
why an extension is warranted.
    (c) Decision. If the CSREES decision on the appeal is adverse to 
the awardee or if an awardee's request for review is rejected, the 
awardee then has the option of submitting a request to the CSREES OEP 
Deputy Administrator for further review. The decision of the CSREES OEP 
Deputy Administrator is considered final.


Sec.  3430.63  Expiring appropriations.

    (a) CSREES awards supported with agency appropriations. Most CSREES 
awards are supported with annual appropriations. On September 30th of 
the 5th fiscal year after the period of availability for obligation 
ends, the funds for these appropriations accounts expire per 31 U.S.C. 
1552 and the account is closed, unless otherwise specified by law. 
Funds that have not been drawn through DHHS-PMS, ASAP, or other 
electronic payment system by the awardee or disbursed through any other 
system or method by August 31st of that fiscal year are subject to be 
returned to the U.S. Department of the Treasury after that date. The 
August 31st requirement also applies to awards with a 90-day period 
concluding on a date after August 31st of that fifth year. 
Appropriations cannot be restored after expiration of the accounts. 
More specific instructions are provided in the CSREES award terms and 
conditions.
    (b) CSREES awards supported with funds from other Federal agencies 
(reimbursable funds). CSREES may require that all draws and 
reimbursements for awards supported with reimbursable funds (from other 
Federal agencies) be completed prior to June 30th of the 5th fiscal 
year after the period of availability for obligation ends to allow for 
the proper billing, collection, and close-out of the associated 
interagency agreement before the appropriations expire. The June 30th 
requirement also applies to awards with a 90-day period concluding on a 
date after June 30th of that fifth year. Appropriations cannot be 
restored after expiration of the accounts. More specific instructions 
are provided in the CSREES award terms and conditions.

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. 7632).


Sec.  3430.201  Purpose.

    (a) Focus areas. 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 the following five focus areas:
    (1) Research in plant breeding, genetics, and genomics to improve 
crop characteristics, such as--
    (i) Product, taste, quality, and appearance;
    (ii) Environmental responses and tolerances;
    (iii) Nutrient management, including plant nutrient uptake 
efficiency;
    (iv) Pest and disease management, including resistance to pests and 
diseases resulting in reduced application management strategies; and
    (v) Enhanced phytonutrient content.
    (2) Efforts to identify and address threats from pests and 
diseases, including threats to specialty crop pollinators.
    (3) Efforts to improve production efficiency, productivity, and 
profitability over the long term (including specialty crop policy and 
marketing).
    (4) New innovations and technology, including improved 
mechanization and technologies that delay or inhibit ripening.
    (5) Methods to prevent, detect, monitor, control, and respond to 
potential food safety hazards in the production and processing of 
specialty crops, including fresh produce.
    (b) Other. CSREES will award research and extension, including 
integrated, grants to eligible institutions listed in Sec.  3430.203. 
In addition to the focus areas identified 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 
CSREES 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:

[[Page 45752]]

    Integrated project means a project that incorporates 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).
    Trans-disciplinary means a multi-discipline approach that brings 
biological and physical scientists together with economists and social 
scientists to address challenges in a holistic manner.


Sec.  3430.203  Eligibility.

    Eligible applicants for the grant program implemented under this 
subpart include: Federal agencies, national laboratories; colleges and 
universities (offering associate's or higher degrees); 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.


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 focus areas 
identified in Sec.  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 of the five focus areas identified in Sec.  3430.201. In making 
awards for this program, CSREES 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.


Sec.  3430.205  Funding restrictions.

    (a) Prohibition against construction. 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).
    (b) Indirect costs. Subject to Sec.  3430.54, indirect costs are 
allowable.


Sec.  3430.206  Matching requirements.

    (a) Requirement. 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.
    (b) Indirect costs. Use of indirect costs as in-kind matching 
contributions is subject to Sec.  3430.52.


Sec.  3430.207  Other considerations.

    The term of a grant under this subpart shall not exceed 10 years.

    Signed at Washington, DC, on August 28, 2009.
Colien Hefferan,
Administrator, Cooperative State Research, Education, and Extension 
Service.
[FR Doc. E9-21264 Filed 9-3-09; 8:45 am]
BILLING CODE 3410-22-P


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