[Federal Register Volume 61, Number 167 (Tuesday, August 27, 1996)]
[Notices]
[Pages 44035-44036]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-21815]


 ========================================================================
 Notices
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains documents other than rules 
 or proposed rules that are applicable to the public. Notices of hearings 
 and investigations, committee meetings, agency decisions and rulings, 
 delegations of authority, filing of petitions and applications and agency 
 statements of organization and functions are examples of documents 
 appearing in this section.
 
 ========================================================================
 

  Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / 
Notices  

[[Page 44035]]



DEPARTMENT OF AGRICULTURE


Alternative Agricultural Research and Commercialization (AARC) 
Corporation; Request for Proposals

AGENCY: Alternative Agricultural Research and Commercialization (AARC) 
Corporation, USDA.

ACTION: AARC Corporation Request for Proposals.

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

Program Description

Purpose

    The Alternative Agricultural Research and Commercialization (AARC) 
Corporation is requesting proposals to use agricultural (traditional 
and new crops, animal by-products or forestry) materials in industrial 
products or processes. The authority for the AARC program is contained 
in Sections 1660 and 1661 of the Food, Agriculture, Conservation, and 
Trade Act of 1990, Pub. Law No 101-624, 7 U.S.C. 5904, as amended by 
the Federal Agricultural Improvement and Reform (FAIR) Act of April 4, 
1996, (Pub. Law 104-127, Title VII, subtitle A, chapter 2, section 
1657c). Potential funding for proposals to provide commercialization 
assistance to private companies using the Cooperative Agreements 
Program (Program) to assist emerging industrial products/processes 
involving the use of agricultural materials in non-food, non-feed, non-
traditional fiber products or processes. The Board of Directors 
reserves the right to use only certain types of authorized assistance. 
Successful projects are expected to repay the AARC Corporation 
Revolving Fund through negotiated arrangements. The Program is 
administered by the AARC Corporation, which is a wholly-owned 
government Corporation of the U.S. Department of Agriculture.
    The objectives of the AARC Corporation are:

    * To search for new non-food, non-feed, non-traditional fiber 
products that may be produced from agricultural commodities and for 
processes to produce such products.
    * To conduct product and co-product/process development and 
demonstration projects, as well as provide commercialization 
assistance for industrial products from agricultural and forestry 
materials.
    * To encourage cooperative development and marketing efforts 
among manufacturers, private and government laboratories, 
universities, and financiers to assist in bridging the gap between 
research results and marketable, competitive products and processes.
    * To collect and disseminate information about commercialization 
projects that use agricultural or forestry materials and industrial 
products derived therefrom.

    Under the Program, the AARC Corporation will award competitive 
cooperative agreements to support primarily pre-commercialization or 
commercialization tasks, including marketing for the development of new 
industrial products or processes derived from agricultural or forestry 
materials. All other things equal, the nearer to commercialization a 
product or process is, the higher the likelihood of funding by the AARC 
Corporation.
    The AARC Corporation will accept either pre-proposals or full 
proposals. Pre-proposals will be evaluated to determine if an idea has 
sufficient merit to warrant a full proposal, including if it meets the 
AARC Corporation's mission, and to provide suggestions for improvement. 
Full proposals will require more time to complete and will be evaluated 
to determine if they warrant funding. The AARC Corporation may ask 
applicants submitting either pre-proposals or full proposals to make an 
oral presentation. All proposals will be evaluated by external 
reviewers, as well as by the AARC Corporation staff, before the 
proposals (along with review comments) are provided to the Board of 
Directors. The Board makes final funding decisions.

Available Funding

    Congress has agreed to appropriate $7 million in FY 1997.
    The AARC Corporation Board expects applicants to, at minimum, match 
the dollars requested from the AARC Corporation. A preference may be 
given to projects for which the ratio of AARC Corporation funds to non-
Corporation funds would be the lowest.

Eligibility

    Proposals are invited from any private firm, individual, public or 
private educational institution or organization, federal agency, 
cooperative, or non-profit organization. Cooperative projects involving 
combinations of the above organizations, especially with private sector 
leadership, are strongly encouraged. Since this is basically a program 
to commercialize new products, and since repayment is expected, it is 
much more likely that awards will be given to private firms. Small 
business entrepreneurs are preferred. The private sector partner must 
take the lead when an educational institution is involved.

Program Emphasis

    The AARC Corporation Board has approved funding for about 60 
projects using 1993-96 appropriated funds. Another six projects are 
currently under consideration for funding with 1996 appropriations. 
Projects include use of a broad range of agricultural and forestry 
materials such as: soybean oil, soybean meal, cotton lint, peanut 
hulls, corn husks, wheat straw, milkweed, kenaf, castor oil, rapeseed, 
cuphea, crambe, ethanol, mesquite, hesperaloe, lesquerella, 
agricultural and forestry wastes, biomass, and plant proteins. Examples 
of products include: biocontrol agents, medium-density fiberboard and 
building materials from straw, hollow veneer poles, food packaging, 
bonded paper from kenaf, oil absorbents, fillers and yarn, spinning 
fibers, highway signposts and railroad ties, building and furniture 
composites, heating and electricity, potting mixes, biodiesel--as 
replacement for petroleum, biodegradable lubricants, coatings, 
cosmetics, detergents, personal care products, compost, carrier for 
crop protection materials, and cat litter.

Evaluation Criteria

    The AARC Corporation's primary interest, in this request for pre-
proposals/proposals, is in providing assistance in pre-commercial 
activities to move new industrial products from agricultural and 
forestry materials into the marketplace. The AARC Corporation Board 
seeks projects that will have market impact; this includes expanding 
use of agricultural or forestry materials in industrial products 
especially those that expand markets for farmers, create

[[Page 44036]]

jobs, spur rural development, provide environmental and/or conservation 
benefits, and improve trade. Emphasis will be given to those proposals 
whose products are closest to commercialization and have positive 
impact on rural employment and economic activity.
    Proposals and pre-proposals will be evaluated on four primary 
criteria: management team capability, business and marketing soundness, 
technical factors, and expected time and magnitude of impacts if 
successful. Examples of types of information that will enter the 
decision process on each of the primary categories of criteria include:

    Management: Capability of the management team.
    Amount of matching funds (cash) committed.
    Awareness of the financial resources needed to successfully 
market the product.
    Clear identification of project milestones.
    Private sector leadership to commercialize the product or 
process.
    Business: Potential profitability.
    Clear identification of customers.
    Structure of the market in terms of size, number, leading 
competitors, and reaction of competitors to a new product.
    Amount and nature of the value added to the agricultural or 
forestry material.
    Ability to replicate in other parts of the country.
    Key issues and government policies or regulations that might 
impact success.
    Applicant's ability and willingness to repay the AARC 
Corporation for the risk investment made by the American taxpayers.
    Technical: Relation to previous work.
    Technical requirements of the product--industry standards or 
guidelines.
    Technical and market testing needed.
    Government approvals or permit required.
    Major technical hindrances.
    Innovative techniques and patents.
    Ability to achieve technical claims.
    Present stage of development.
    Impacts: Volume of agricultural or forestry material used.
    Number and quality of jobs (especially in distressed rural 
areas) expected to be created--type, rural/urban, timeframe.
    Potential positive and negative environmental impacts from 
production to consumer disposal of product.
    Proposed product's implications for helping improve farm income, 
especially the family farm.
    Resource conservation effects such as replacement of stock 
resources, crop diversification, soil erosion, water use, etc.
    Estimated impact on export/import trade balance, commodity 
support programs and rural economic activity.

Other Considerations

    With respect to projects carried out with private researchers or 
commercial companies, the enabling legislation provides that 
information submitted by applicants incident thereto will be kept 
confidential. Project information including applications is 
specifically excluded from release under the Freedom of Information 
Act, except with the approval of the person providing the information 
or in a judicial or administrative proceeding in which such information 
is subject to protective order. However, the information will be 
reviewed by three reviewers who will be held to confidentiality. Board 
members are required to exclude themselves from consideration of a 
proposal where a conflict of interest exists.
    Intellectual property rights, such as patents and licenses, shall 
remain with the owner unless other arrangements are negotiated as part 
of the agreement. Inventions made under an award under this Program 
shall be owned by the awardee in accordance with 35 U.S.C. 200-204 and 
37 CFR 401.
    No agreement may be entered into under the program for the 
acquisition or construction of a building or facility.
    All applicants must file a declaration of compliance with 31 U.S.C. 
1352 regarding limitation on the use of appropriated funds to influence 
certain Federal contracting and financial transactions either prior to 
or simultaneous with the submission.
    Due to limited funds, the AARC Corporation may not be able to fund 
all projects meriting support, and awards will be based on merit using 
the review evaluations and the Board's judgement.
    Applicants who submitted a proposal or pre-proposal previously must 
reapply to be considered for Fiscal Year 1997 funding.

Future Proposals

    In the future and until further notice, the AARC Corporation Board 
will accept proposals or pre-proposals at any time on AARC Corporation 
forms. The Board will meet at least three times a year to select 
proposals for funding.

Submissions

    Because funds are limited, projects will be accepted on a first 
come basis. Applicants are encouraged to submit applications as soon as 
possible after seeing this notice. To be eligible for this round of 
AARC Corporation Board decisions, both pre-proposals and full proposals 
must be received at the AARC Corporation office. Pre-proposals are 
preferred. One of the following addresses should be used, as 
applicable:

Regular U.S. Mail

USDA AARC Corporation, STOP 0401, 1400 Independence Ave, S.W., 0156 
South Building, Washington, D.C. 20250-0401

Overnight Delivery

USDA AARC Corporation, 1400 Independence Ave, S.W., Room 0156 South 
Building, Washington, D.C. 20250-0401

For More Information

    Proposals must be submitted on forms provided by the AARC 
Corporation--either pre-proposals or full proposals. Contact the AARC 
Corporation by letter using the addresses above, or fax number (202) 
690-1655 to receive a packet containing the instructions and 
application forms.
    Specific questions should be directed to Patricia Dunn: Phone 202-
690-1634.

    Done in Washington, D.C., on August 21, 1996.
W. Bruce Crain,
Executive Director, AARC Corporation.
[FR Doc. 96-21815 Filed 8-26-96; 8:45 am]
BILLING CODE 3410-2B-M