[Federal Register Volume 64, Number 56 (Wednesday, March 24, 1999)]
[Proposed Rules]
[Pages 14348-14350]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-7256]



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Part IV





Department of Agriculture





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Cooperative State Research, Education, and Extension Service



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7 CFR Part 3400



Special Research Grants Programs; Proposed Rule

  Federal Register / Vol. 64, No. 56 / Wednesday, March 24, 1999 / 
Proposed Rules  

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DEPARTMENT OF AGRICULTURE

Cooperative State Research, Education, and Extension Service

7 CFR Part 3400


Special Research Grants Program

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

ACTION: Proposed Rule

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SUMMARY: This proposed rule will amend the Special Research Grants 
Program Administrative Regulations to replace references to section 2 
of the Act of August 4, 1965, with references to the Competitive, 
Special, and Facilities Research Grant Act (CSFRGA), to apply to 
competitive and noncompetitive grants, to include extension and 
educational activities under the regulation, to shorten the maximum 
potential grant award period, to require grantees to arrange for 
scientific peer review of their proposed research activities and merit 
review of their proposed extension and education activities prior to 
award, in accordance with subsection (c)(5) of CSFRGA, as amended by 
section 212 of the Agricultural Research, Extension, and Education 
Reform Act of 1998 (7 U.S.C. 450i(c)(5)), and to require an annual 
report of the results of the research, extension, or education activity 
and the merit of the results.

DATES: Written comments must be received on or before April 23, 1999.

ADDRESSES: Submit written comments concerning this proposed rule to Dr. 
Sally Rockey, Deputy Administrator, Competitive Research Grants and 
Awards Management, USDA Cooperative State Research, Education, and 
Extension Service, Mail Stop 2240, 1400 Independence Avenue, SW, 
Washington, DC 20250-2240; telephone, (202) 401-1761; e-mail, 
[email protected].

FOR FURTHER INFORMATION CONTACT: Dr. Sally Rockey, Deputy 
Administrator, at the above address.

SUPPLEMENTARY INFORMATION: On June 23, 1998, President Clinton signed 
into law the Agricultural Research, Extension, and Education Reform Act 
of 1998 (AREERA) (Pub. L. No. 105-185). CSFRGA (formerly section 2 of 
the Act of August 4, 1965, Pub. L. No. 89-106, as retitled by Section 
401(a) of the Food, Agriculture, Conservation, and Trade Act Amendments 
of 1991 (FACT Act Amendments), Pub. L. No. 102-237), as amended by 
section 212(2) of AREERA, states in subsection (c)(5) that the 
Secretary shall make a grant under this authority for a research 
activity only if the activity has undergone scientific peer review 
arranged by the grantee in accordance with regulations promulgated by 
the Secretary. Likewise, subsection (c)(5) of CSFRGA, as amended by 
section 212(2) of AREERA, states that the Secretary shall make a grant 
under this authority for an extension or education activity only if the 
activity has undergone merit review arranged by the grantee in 
accordance with regulations promulgated by the Secretary. This proposed 
rule is intended to comply with the Secretary's duty to promulgate such 
regulations.
    The proposed rule expands the scope of these regulations to apply 
to all subsection (c) awards, including both competitive and 
noncompetitive awards made under this authority. The proposed rule also 
revises these regulations to address extension and education activities 
in addition to research activities. CSREES determined that expanding 
the scope of the existing regulations was preferable compared to the 
alternative of having two sets of administrative regulations to govern 
the same program. Having only one set of administrative regulations 
will result in less confusion of interested parties. Making these 
regulations applicable to all subsection (c) awards, including 
competitive and noncompetitive grants, is necessary because the 
statutory review requirements apply to all grants made under this 
authority. The proposed rule clearly delineates in revised Sec. 3400.1 
which provisions will apply respectively to competitive and 
noncompetitive awards. Subparts A and B, other than Sec. 3400.1, will 
continue to apply only to grants awarded under subsection (c)(1)(A). 
Subpart C, implementing the review requirements, will apply to all 
grants awarded under subsection (c), including both competitive and 
noncompetitive awards.
    Subpart C of the proposed rule requires that applicants have 
research proposals undergo peer review and extension and education 
proposals undergo merit review. The program authority emphasizes the 
regional or national nature of the funded projects. Consistent with 
that emphasis, the review must assess the technical quality and 
relevance of the proposed work to regional or national goals. The 
proposed regulations also require that any review be credible and 
independent. By specifying only basic parameters and not detailed 
procedures for review, CSREES aims to provide applicants with maximum 
flexibility in determining the timing and use of resources committed 
for such review. CSREES, however, has reserved the right in the 
proposed regulations to specify the timing of submission of the notice 
of completion of review. The agency does not anticipate the need to set 
the timing of this notice, but intends only to preserve this option 
should CSREES determine that implementation of this regulation required 
such action. Flexibility within the review requirements allows 
applicants to tailor the nature and character of the review more 
appropriately to the size, scope, and duration of the proposed project. 
CSREES considers such latitude necessary because of the broad range of 
research, education, and extension projects supported under this 
authority.
    CSREES is proposing a broad definition of ``scientific peer 
review.'' For purposes of this grant program, CSREES is implementing 
``peer'' to mean ``experts with the scientific knowledge and technical 
skills to conduct the proposed research work.'' Again, this provision 
aims to allow applicants flexibility in determining who performs the 
review while simultaneously imposing the minimum standards that CSREES 
believes are necessary to ensure the ability of such persons to review 
the technical components of a proposed activity. CSREES also lists 
certain persons, such as collaborators, who should not perform the 
review because of a direct conflict-of-interest. CSREES includes 
similar requirements for merit reviewers based on the same rationale.
    Applicants must provide notice acting as certification prior to an 
award by CSREES that the review has been completed. Having applicants 
submit only a notice of compliance, and not the actual review 
documentation or results, aims to minimize the administrative burden on 
the applicants. The proposed regulations, however, do require that the 
applicant retain the review documentation and, consistent with agency 
assistance regulations, such documentation may be subject to agency 
inspection.
    CSREES has elected not to require peer or merit review for each 
renewal or extension of a proposed project either through a renewal 
grant, continuation grant, or supplemental grant except under limited 
circumstances. These circumstances are: (1) if the funded activity has 
changed significantly from the original proposal; (2) if other 
scientific discoveries have affected the project; and (3) if the need 
for the activity has changed. CSREES will make the final determinations 
as to whether any of these three situations exists. Under any of these 
three circumstances, a new review will be required before

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CSREES will make a subsequent grant award. Because any grant awarded 
under this program statutorily cannot extend beyond three years, a new 
review automatically is required every three years before CSREES can 
make a new grant award.
    Subpart D of the proposed rule requires that recipients submit 
annual reports describing the results of the research, extension, or 
education activity. The agency currently requires that recipients 
submit annual and final performance reports as part of the terms and 
conditions of each award. The agency believes that subpart D meets the 
reporting requirements contained in section 212 of AREERA.
    This proposed rule also makes technical amendments to Part 3400 to 
change references to the Act of August 4, 1965, to the Competitive, 
Special, and Facilities Research Grant Act as retitled by Section 
401(a) of the FACT Act Amendments. The proposed rule also changes the 
maximum potential award period for Special Grants from five (5) years 
to three (3) years to conform with the amendments in section 212 of 
AREERA.
    This proposed rule has been reviewed under Executive Order No. 
12866, and it has been determined that it is not a ``significant 
regulatory action'' rule because it will not have an annual effect on 
the economy of $100 million or more or adversely and materially affect 
a sector of the economy, productivity, competition, jobs, the 
environment, public health or safety, or State, local, or tribal 
governments or communities. This proposed rule will not create any 
serious inconsistencies or otherwise interfere with any actions taken 
or planned by another agency. It will not materially alter the 
budgetary impact of entitlements, grants, user fees or loan programs 
and does not raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or principles set forth in 
Executive Order No. 12866. In addition, the Department certifies that 
the rule will not have a significant impact on a substantial number of 
small entities as defined in the Regulatory Flexibility Act, Pub. L. 
96-354 (5 U.S.C. 601-612).
    This proposed rule has been reviewed under Executive Order No. 
12988, Civil Justice Reform. No retroactive effect is to be given to 
this proposed rule. This proposed rule does not require administrative 
proceedings before parties may file suit in court.
    This proposed rule does not significantly affect the environment. 
Therefore, an environmental impact statement is not required under the 
National Environmental Policy Act of 1969, as amended (42 U.S.C. 4321 
et seq.).
    Under the provisions of the Paperwork Reduction Act of 1995, as 
amended, 44 U.S.C. chapter 35, and Office of Management and Budget 
(OMB) regulations at 5 CFR Part 1320, the collection of information 
requirements for research activities contained in this rule have been 
approved under OMB Document Nos. 0524-0022 and 0524-0033. When 
appropriations are made available for extension and education 
activities under this program, CSREES will fully comply with the 
Paperwork Reduction Act and submit a revision to the collection of 
information requirements to include these activities. Comments from 
potential applicants on this proposed collection of information may be 
submitted to CSREES-USDA; Office of Extramural Programs; Policy and 
Program Liaison Staff; Mail Stop 2299; 1400 Independence Avenue, S.W.; 
Washington, D.C. 20250-2299 by May 24, 1999, or to the Desk Officer for 
Agriculture, Office of Information and Regulatory Affairs, Office of 
Management and Budget, Washington, D.C. 20502. Reference should be made 
to the volume, page, and date of this Federal Register publication.

List of Subjects in 7 CFR Part 3400

    Grants programs--agriculture, Grants administration.

    For the reasons set forth above, CSREES proposes to amend Part 3400 
of Chapter XXXIV of Title 7 of the Code of Federal Regulations as 
follows:

PART 3400--SPECIAL RESEARCH GRANTS PROGRAM

    1. The authority citation for Part 3400 is revised to read as 
follows:

    Authority: 7 U.S.C. 450i(c).

    2. Revise Sec. 3400.1 to read as follows:


Sec. 3400.1  Applicability of regulations

    (a) The regulations of this part apply to special research grants 
awarded under the authority of subsection (c) of the Competitive, 
Special, and Facilities Research Grant Act, as amended (7 U.S.C. 
450i(c)), to facilitate or expand promising breakthroughs in areas of 
the food and agricultural sciences of importance to the United States. 
Subparts A and B, excepting this section, apply only to special 
research grants awarded under subsection (c)(1)(A) of the Act. Subpart 
C, Peer and Merit Review Arranged by Grantees, and Subpart D, Annual 
Reports, applies to all grants awarded under subsection (c) of the Act.
    (b) Each year the Administrator of CSREES shall determine and 
announce through publication of a Notice in such publications as the 
Federal Register, professional trade journals, agency or program 
handbooks, the Catalog of Federal Domestic Assistance, or any other 
appropriate means, research program areas for which proposals will be 
solicited competitively, to the extent that funds are available.
    (c) The regulations of this part do not apply to research, 
extension or education grants awarded by the Department of Agriculture 
under any other authority.
    3. Revise Sec. 3400.7(c) by inserting in lieu of the words ``five 
(5) years'' the words ``three (3) years'' so that the paragraph is 
revised to read as follows:


Sec. 3400.7  Use of funds; changes.

    (c) Changes in project period. The project period determined 
pursuant to Sec. 3400.5(b) may be extended by the Administrator without 
additional financial support for such additional period(s) as the 
Administrator determines may be necessary to complete, or fulfill the 
purposes of an approved project. Any extension, when combined with the 
originally approved or amended project period shall not exceed three 
(3) years (the limitation established by statute) and shall be further 
conditioned upon prior request by the grantee and approval in writing 
by the Department, unless prescribed otherwise in the terms and 
conditions of a grant award.
* * * * *
    4. Subpart C of Part 3400 is added to read as follows:

Subpart C--Peer and Merit Review Arranged by Grantees

3400.20  Grantee review prior to award.
3400.21  Scientific peer review for research activities.
3400.22  Merit review for education and extension activities.

Subpart C--Peer and Merit Review Arranged by Grantees


Sec. 3400.20  Grantee review prior to award.

    (a) Review requirement. Prior to the award of a standard or 
continuation grant by CSREES, any proposed project shall have undergone 
a review arranged by the grantee as specified in this subpart. For 
research projects, such review must be a scientific peer review 
conducted in accordance with Sec. 3400.21. For education and extension 
projects, such review must be a merit review conducted in accordance 
with Sec. 3400.22.
    (b) Credible and independent. Review arranged by the grantee must 
provide for

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a credible and independent assessment of the proposed project. A 
credible review is one that provides an appraisal of technical quality 
and relevance sufficient for an organizational representative to make 
an informed judgment as to whether the proposal is appropriate for 
submission for Federal support. To provide for an independent review, 
such review may include USDA employees, but should not be conducted 
solely by USDA employees.
    (c) Notice of completion and retention of records. A notice of 
completion of review shall be conveyed in writing to CSREES either as 
part of the submitted proposal or prior to the issuance of an award, at 
the option of CSREES. The written notice constitutes certification by 
the applicant that a review in compliance with these regulations has 
occurred. Applicants are not required to submit results of the review 
to CSREES; however, proper documentation of the review process and 
results should be retained by the applicant.
    (d) Renewal and supplemental grants. Review by the grantee is not 
automatically required for renewal or supplemental grants as defined in 
Sec. 3400.6. A subsequent grant award will require a new review if, 
according to CSREES, either the funded project has changed 
significantly, other scientific discoveries have affected the project, 
or the need for the project has changed. Note that a new review is 
necessary when applying for another standard or continuation grant 
after expiration of the grant term.


Sec. 3400.21  Scientific peer review for research activities.

    Scientific peer review is an evaluation of a proposed project for 
technical quality and relevance to regional or national goals performed 
by experts with the scientific knowledge and technical skills to 
conduct the proposed research work. Peer reviewers may be selected from 
an applicant organization or from outside the organization, but shall 
not include principal or co-principal investigators, collaborators or 
others involved in the preparation of the application under review.


Sec. 3400.22  Merit review for education and extension activities.

    Merit review is 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. The merit review shall be 
performed by peers and other individuals with expertise appropriate to 
evaluate the proposed project. Merit reviewers may not include 
principals, collaborators or others involved in the preparation of the 
application under review.
    5. Subpart D of Part 3400 is added to read as follows:

Subpart D--Annual Reports


Sec. 3400.23  Annual reports.

    (a) Reporting requirement. Annually, within 30 days of the 
anniversary date of each award, the recipient shall submit a report 
describing the results of the research, extension, or education 
activity and the merit of the results.
    (b) Report type and content. Unless otherwise stipulated, grant 
recipients will have met the reporting requirement under this subpart 
by complying with the reporting requirements as set forth in the terms 
and conditions of the grant at the time of award.

    Done at Washington, D.C., on this 19th day of March, 1999.
I. Miley Gonzalez,
Under Secretary, Research, Education and Economics.
[FR Doc. 99-7256 Filed 3-23-99; 8:45 am]
BILLING CODE 3410-22-P