[Federal Register Volume 64, Number 121 (Thursday, June 24, 1999)]
[Rules and Regulations]
[Pages 34102-34104]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-16016]



[[Page 34101]]

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Part V





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 Program; Final Rule

  Federal Register / Vol. 64, No. 121 / Thursday, June 24, 1999 / Rules 
and Regulations  

[[Page 34102]]



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: Final rule.

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SUMMARY: This rule amends 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.

EFFECTIVE DATE: June 24, 1999.

FOR FURTHER INFORMATION CONTACT: 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].

SUPPLEMENTARY INFORMATION: The Cooperative State Research, Education, 
and Extension Service (CSREES) published a Notice of Proposed 
Rulemaking (NPRM) to amend the administrative provisions to the Special 
Research Grants Program in the Federal Register on March 24, 1999 (64 
FR 14348).

Background and Purpose

    Under the authority of subsections (c)(1)(A) and (B) of the 
Competitive, Special, and Facilities Research Grants Act, as amended (7 
U.S.C. 450i), the Secretary of Agriculture is authorized to make 
special grants for the conduct of research, extension or education 
activities to facilitate or expand promising breakthroughs in areas of 
food and agricultural sciences; promote excellence in research, 
extension or education on a regional and national level; promote the 
development of regional research centers; promote the research 
partnership between the Department of Agriculture, colleges and 
universities, research foundations, and State agricultural experiment 
stations for regional research efforts; and facilitate coordination and 
cooperation of research, extension, or education among States through 
regional grants.
    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). The Competitive, Special, and 
Facilities Research Grants Act, 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 rule revises section 3400.1 to expand the scope of the current 
regulations to apply to all subsection (c) awards, including both 
competitive and noncompetitive awards made under this authority. The 
rule also revises these regulations to address extension and education 
activities in addition to research activities.
    Subpart C of the rule specifies the basic parameters for scientific 
peer and merit review, and not detailed procedures, to provide 
applicants with maximum flexibility in determining the timing and use 
of resources. Applicants are free to change peer or merit review 
protocols as deemed appropriate, as long as the peer or merit review 
continues to meet the requirements of this rule. CSREES, however, has 
reserved the right under this rule to specify the timing of submission 
of the notice of completion of review.
    Section 3400.20 requires that applicants 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 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.
    Subpart D of the 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 a term and condition of each award. 
The agency believes that this meets the reporting requirements added by 
section 212 of AREERA.
    This 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 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.

Public Comments and Statutory Changes

    In the NPRM, CSREES invited comments on the proposed regulations 
for consideration in the formulation of a final rule. Three commenters 
responded.
    One commenter supported efforts aimed at ensuring accountability 
and the best possible return on research investments. The commenter 
also encouraged the development of appropriate review mechanisms for 
all U.S. agricultural research efforts. CSREES believes the rule 
establishes the necessary accountability requirements to ensure that 
the proposed work is reviewed for technical quality and relevance while 
still allowing applicants latitude and flexibility in determining who 
performs the review.
    One commenter questioned the necessity of implementing many of the 
requirements being imposed under the regulation, i.e., the inclusion of 
extension and educational activities under the rule; the shortening of 
the maximum grant period from five to three years; the requirement to 
have grantees arrange for scientific peer review of proposed research 
activities and merit review of proposed extension and educational 
activities; and the necessity to submit an annual report within 30 days 
of the project's

[[Page 34103]]

anniversary date. The regulation promulgates the legislatively mandated 
requirements added by the Agricultural Research, Extension, and 
Education Reform Act of 1998 (AREERA); therefore the imposed 
requirements are mandatory. Although the program authority now requires 
recipients to submit annual reports, the timing and nature of the 
reports are not legislatively specified, consequently the requirement 
in the final rule has been changed to be consistent with current agency 
policy as set forth in the terms and conditions of the grant.
    One commenter requested that the requirement for peer or merit 
review not apply to competitive special grant programs since such a 
review would duplicate efforts at the agency level. The statute makes 
no provision distinguishing competitive and non-competitive grants; 
therefore the agency has no discretion. However, if the institution 
believes that their established organizational review process meets the 
CSREES definition of peer review, then the institution may certify that 
requirements for peer review have been met. The commenter suggested 
that in lieu of requiring a separate notice of completion of review, 
the regulation be changed so that approval by an applicant's authorized 
organizational representative constitutes notice of completion of 
institutional review. CSREES believes that at this point in time it 
should retain the ability to designate when the notice of completion 
should be submitted. However, the suggestion has merit, and CSREES 
intends to facilitate the submission of the notice of completion 
process by incorporating procedures into program requests for 
proposals. Finally, the commenter suggested that the proposed rule at 
Sec. 3400.20 be revised to allow recipients to delegate to the agency 
the conduct of peer review. The legislation requires that recipients 
arrange for the performance of a distinct and separate review; 
consequently, CSREES cannot assume that responsibility on behalf of the 
applicants.

Classification

Executive Order No. 12866

    This 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 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. No. 96-354 (5 U.S.C. 
601-612).

Executive Order No. 12988

    This rule has been reviewed under Executive Order No. 12988, Civil 
Justice Reform. No retroactive effect is to be given to this rule. This 
rule does not require administrative proceedings before parties may 
file suit in court.

National Environmental Policy Act

    This 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.).

Paperwork Reduction Act

    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 the 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 June 23, 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.

Catalog of Federal Domestic Assistance

    This program is listed in the Catalog of Federal Domestic 
Assistance under No. 10.200. For reasons set forth in the Final Rule-
related Notice to 7 CFR Part 3015, Subpart V (48 FR 29115, June 24, 
1983), this program is excluded from the scope of Executive Order 
12372, which requires intergovernmental consultation with State and 
local officials.

List of Subjects in 7 CFR Part 3400

    Grants programs--agriculture, Grants administration.

    For the reasons set forth above, Part 3400 of Chapter XXXIV of 
Title 7 of the Code of Federal Regulations is amended 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). Subpart C, Peer and 
Merit Review Arranged by Grantees, and Subpart D, Annual Reports, apply 
to all grants awarded under subsection (c).
    (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) to read as follows:


Sec. 3400.   Use of funds; changes.

* * * * *
    (c) Changes in project period. The project period determined 
pursuant to Sec. 3400.5(b) may be extended by the

[[Page 34104]]

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 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 principals, 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. The recipient shall submit an annual 
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 3rd day of June, 1999.
Colien Hefferan,
Acting Administrator, Cooperative State Research, Education, and 
Extension Service.
[FR Doc. 99-16016 Filed 6-23-99; 8:45 am]
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