[Federal Register Volume 68, Number 189 (Tuesday, September 30, 2003)]
[Rules and Regulations]
[Pages 56137-56143]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-24727]



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  Federal Register / Vol. 68, No. 189 / Tuesday, September 30, 2003 / 
Rules and Regulations  

[[Page 56137]]



DEPARTMENT OF AGRICULTURE

7 CFR Part 2903


Office of Energy Policy and New Uses; Biodiesel Fuel Education 
Program--Administrative Provisions

AGENCY: Office of the Chief Economist, Office of Energy Policy and New 
Uses, USDA.

ACTION: Final rule.

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

SUMMARY: The Office of Energy Policy and New Uses (OEPNU) adds new 
regulations for the purpose of administering the Biodiesel Fuel 
Education Program conducted under the authority of section 9004 of the 
Farm Security and Rural Investment Act of 2002. This action establishes 
and codifies the administrative procedures to be followed in the 
solicitation of competitive proposals, the evaluation of such 
proposals, and the award and administration of grants under this 
Program.

DATES: Effective Date: This rule is effective September 30, 2003.

FOR FURTHER INFORMATION CONTACT: James Duffield at (202) 401-0523 or 
via electronic mail at [email protected].

SUPPLEMENTARY INFORMATION: 

Purpose

    On July 15, 2003, the Office of Energy Policy and New Uses (OEPNU) 
published a Proposed Rule (68 FR 41751, July 15, 2003) to provide 
administrative provisions for the Biodiesel Fuel Education Program. In 
the Proposed Rule, OEPNU invited comments, which were due by August 14, 
2003. The Agency did not receive any comments. No public meetings were 
requested or held. Therefore, the text in the Final Rule substantively 
is unchanged from the text proposed on July 15, 2003. OEPNU did make 
three minor grammatical or stylistic changes, corrected a reference to 
this part in section 2903.15, and removed specific references to 7 CFR 
part 3015, since those regulations have been proposed for removal (68 
FR 41947, July 16, 2003). Even without those specific references, the 
Final Rule clearly reminds the public that this program is subject to 
all applicable USDA regulations.
    The Biodiesel Fuel Education Program was authorized in Sec. 9004 of 
the Farm Security and Rural Investment Act of 2002 (``2002 Farm Bill'') 
(7 U.S.C. 8104). This Final Rule describes the policies and procedures 
OEPNU will apply to the Biodiesel Fuel Education Program. These 
policies are consistent with those used by other USDA agencies, 
particularly the Cooperative State Research, Education, and Extension 
Service (CSREES). The rules are consistent with the basic parameters by 
which most Federal agencies operate competitive grants programs and 
will be revised as needed to conform with Federal streamlining efforts.
    The goals of the Biodiesel Fuel Education Program are to stimulate 
biodiesel consumption and to accelerate the development of a biodiesel 
infrastructure. Increasing biodiesel production will increase the 
demand for farm commodities, which in turn will raise farm prices and 
net farm income, and lower government program payments. The development 
of a biodiesel industry would increase employment and stimulate 
economic growth in rural areas.

Agencies' Roles

    Section 9004 of the 2002 Farm Bill (7 U.S.C. 8104) requires that 
the Secretary make competitive grants to eligible entities to educate 
governmental and private entities that operate vehicle fleets, other 
interested entities (as determined by the Secretary), and the public 
about the benefits of biodiesel fuel use. In the Joint Explanatory 
Statement of the Committee of Conference accompanying the 2002 Farm 
Bill, the Managers encouraged the Secretary of Agriculture to utilize 
the expertise of OEPNU in carrying out the purposes of this section. 
The Secretary delegated this authority to the Chief Economist, who is 
implementing this authority through OEPNU. The USDA Farm Bill 
Implementation Task Force acknowledged that OEPNU would provide 
technical oversight for the Program and utilize the services of CSREES 
in administering the Program.

Memorandum of Understanding

    OEPNU and CSREES recognize the need for coordination and 
collaboration between the agencies to carry out the intent of the law. 
A memorandum of understanding has been signed by each agency which 
specifies the manner in which OEPNU and CSREES will collaborate in the 
administration of the Program. OEPNU will utilize the services of 
CSREES, pursuant to the Economy Act, 31 U.S.C. 1535, to administer the 
Program grants, as recommended by the Farm Bill Implementation Task 
Force. The Task Force recommended CSREES because of the Agency's 
experience conducting education-related grant programs and to take 
advantage of CSREES staff specialists who are familiar with 
administering grants.

Role of Oversight Committee

    In implementing the Program, OEPNU has formed an oversight 
committee, including representatives with relevant expertise from the 
USDA Forest Service, Office of Procurement and Property Management, 
Agricultural Research Service, Rural Utilities Service, OEPNU, and 
CSREES and the Department of Energy Office of Biomass. Expertise of 
committee members includes research, development and demonstration of 
alternative fuels, production of alternative fuels, and procurement of 
alternative fuels.

Request for Applications

    The committee has recommended guidelines for the Program, which are 
included in the Notice of Request for Applications published on July 
15, 2003 (68 FR 41770). The closing date for receiving applications was 
August 14, 2003. Qualified applications that responded to the Request 
for Applications will be reviewed by the Oversight Committee. and the 
Committee will recommend awards. OEPNU plans to award one or two 
continuation grants in FY 2003. Awards made pursuant to the Request for 
Applications for the Biodiesel Fuel Education Program will be made in 
accordance with this Final Rule.

[[Page 56138]]

Participating Agencies' Experience and Interaction With Stakeholders

    In designing the Request for Applications for the Program, 
committee members relied on their past experiences with biodiesel 
education and outreach. For over a decade, USDA has been involved in 
biodiesel outreach programs. USDA's Office of Energy Policy and New 
Uses (OEPNU) coordinates activities related to biodiesel and other 
renewable fuels for the Department. Since 1993, OEPNU has been involved 
with producer and consumer stakeholder groups interested in developing 
a biodiesel industry in the United States. One of the Department's 
first efforts to bring biodiesel stakeholders together took place in 
September 1995 when OEPNU and the Department of Energy organized a 
stakeholder meeting in Washington, DC. The purpose of the meeting was 
to develop a life cycle inventory of biodiesel. This life cycle 
inventory furthered knowledge about the benefits of biodiesel. Several 
groups were represented at the meeting, including biodiesel producers, 
the oilseed processing industry, the rendering industry, engine 
manufacturers, state and local governments, and environmental groups.
    The Agricultural Research Service (ARS) leads the Department's 
efforts on biodiesel research and demonstration. Since the summer of 
1999, the Beltsville Agricultural Research Center (BARC) has been 
conducting a biodiesel demonstration project that has become a working 
model for others interested in using biodiesel. All of the Center's 150 
pieces of diesel equipment and trucks were converted to a fuel blend of 
20 percent biodiesel and 80 percent petroleum diesel (B20). Vehicles 
from BARC that run on biodiesel and educational materials have been 
displayed and distributed throughout the country. In January 2000, ARS 
conducted a workshop to highlight the BARC biodiesel demonstration 
project. The workshop's 75 attendees represented a broad range of 
potential users, including Federal Agencies, such as the Departments of 
Energy, Defense, and the Interior, and the U.S. Postal Service. 
Officials from nearby cities, counties, and states were also in 
attendance, as well as private industry groups, farmers and biodiesel 
suppliers. The biodiesel demonstration project has been highlighted at 
the BARC Public Day, an annual event that provides an opportunity for 
ARS scientists to describe their research projects to the public.
    A biodiesel outreach program has also been established to introduce 
biodiesel to USDA and other Federal agencies that operate motor fleets. 
Beginning in July of 2000, USDA's Office of Procurement and Property 
Management (OPPM) has been conducting a series of informational 
meetings at various locations around the United States to educate 
Federal fleet managers and other stakeholders on the benefits of 
biodiesel. Meetings have been held in Orlando, FL, San Antonio, TX, 
Minneapolis, MN, Washington, DC, Kansas City, MI, and Salt Lake City, 
UT. These meetings are used as a platform to educate motor fleet 
personnel, postal workers and the public about the major advantages of 
biodiesel. OPPM has also teamed with other entities interested in the 
environmental and health effects of biodiesel, such as the American 
Lung Association and the National Biodiesel Board, to conduct biodiesel 
education meetings for Federal fleet managers, postal workers, and 
other interested stakeholders.

Proposal Review

    In collaboration with external reviewers, the Oversight Committee 
will review proposals and recommend awards. The Committee will monitor 
the Program's performance and provide guidance to OEPNU to insure that 
the Program objectives are being achieved. The Committee will review 
progress reports submitted by the grantees and, on a yearly basis, 
recommend whether the awards should be renewed. Also, on a yearly 
basis, the Committee will recommend whether to reissue the RFA and 
award new grants.
    CSREES will compile application reviews and recommend awards to 
OEPNU. OEPNU will make award decisions.

Awards

    The Program will fund Biodiesel Fuel Education Program grants in 
each of FYs 2003 through 2007. Because of the scope of this Program and 
the limited funds available to support it, OEPNU plans to award one or 
two continuation grants in FY 2003. A continuation grant is a grant 
instrument by which the Department agrees to support a specified level 
of effort for a predetermined project period 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. If these three elements are met, 
OEPNU plans to provide additional support to the funded projects in 
each of FYs 2004 through 2007.
    OEPNU's plan to award only one or two continuation grants should 
facilitate a national education program with a consistent message. It 
should also ease the implementation process and allow OEPNU to monitor 
the Program more effectively. If the Agency were to make numerous 
smaller awards, this could result in multiple education programs with 
different emphases and goals, as well as competition for Program 
participants and human resources to conduct the Program.
    Continuation grants are necessary to ensure that the Program 
follows an orderly and consistent transition from one year to the next 
over the five-year funding period. A successful Biodiesel Fuel 
Education Program will be sequential in nature, i.e., conducted in 
several dependent work phases. For example, phase one might focus on 
identifying program participants and designing educational tools. Phase 
2 might develop a strategy for putting a system and infrastructure in 
place to reach the targeted audience. Phase 3 could focus on scheduling 
and travel logistics. The work phases are interdependent, so selecting 
new grantees each year would cause disruptions and create the potential 
for repetitive efforts. Authorizing continuation grants will allow the 
grantees to develop and conduct long-term plans, preserve program 
continuity, and benefit from learning experiences over the funding 
period.
    The Final Rule is divided into subparts. Subpart A contains general 
information about the Program prescribed by the authorizing 
legislation, including the purpose of the Program and eligibility 
restrictions established by the legislation. Subpart A limits indirect 
costs to the rate that an applicant has negotiated with the cognizant 
Federal negotiating agency, and explains that there are no matching 
funds requirements for the Program. Subpart B describes the 
continuation grant instrument that OEPNU plans to use and outlines 
objectives for projects funded by the Program. Subpart C provides 
information about the publication of program announcements, instructs 
applicants regarding the minimum content requirements for applications, 
and directs them to the program announcement for specific instructions 
regarding application requirements and the order of application 
contents. Subpart C also lists the application submission information 
that will appear in program announcements and describes the process for 
acknowledging the receipt of

[[Page 56139]]

applications. In Subpart D of the rule, the process for selecting 
reviewers is described, and the evaluation criteria applied to 
applications are enumerated. Subpart D also contains a discussion of 
the measures employed by OEPNU to protect against conflicts of interest 
and safeguard applicant and reviewer confidentiality. General award 
administration guidelines are outlined in Subpart E. Subpart E also 
delineates the one-time requirement that applicants submit 
organizational management information and lists the minimum contents of 
the award document. The last subpart of the rule, Section F, includes 
supplementary information. This subpart tells grantees how they can 
obtain review information, what uses of funds and changes to projects 
are permissible, where they can find instructions about reporting 
requirements, and other Federal statutes and regulations that apply to 
the Biodiesel Fuel Education Program. It describes the process for 
handling confidential aspects of applications and awards and defines 
terms that are used elsewhere in the rule.

Paperwork Reduction Act of 1995--Information Collection

    OEPNU currently is using the services of CSREES to administer this 
Program. CSREES obtained information collection approval for the 
``Generic Application Kit'' (OMB Approval No. 0524-0039), which 
encompasses the use of required forms to administer another USDA 
agency's grant program. Should OEPNU decide to administer this Program 
directly in the future, OEPNU will comply independently with 
information collection requirements.

Regulatory Flexibility Act

    USDA certifies that this rule will not have a significant impact on 
a substantial number of small entities as defined in the Regulatory 
Flexibility Act, Public Law 96-354, as amended (5 U.S.C. 601, et seq.) 
because it is a Federal assistance program, not a regulatory regime, 
and awards will be made to fewer than ten entities.

Executive Order 12866

    This rule has been reviewed under Executive Order 12866 and has 
been determined to be nonsignificant as it will not create a serious 
inconsistency or otherwise interfere with an action planned by another 
agency; will not materially alter the budgetary impact of entitlement, 
grants, user fees, or loan programs, or rights and obligations of the 
recipients thereof; and will not raise novel legal or policy issues 
arising out of legal mandates, the President's priorities, or 
principles set forth in this Executive Order. This rule will not have 
an annual effect on the economy of $100 million or more or adversely 
affect in a material way the economy, productivity, competition, jobs, 
the environment, public health, or safety, or State, local, or tribal 
governments or communities.

Unfunded Mandates Reform Act

    Pursuant to Title II of the Unfunded Mandates Reform Act of 1995 
(Pub. L. 104-4), the Department assessed the effects of this rulemaking 
action on State, local, and Tribal government, and the public. This 
action does not compel the expenditure of $100 million or more by any 
State, local, or Tribal governments, or anyone in the private sector. 
Therefore, a statement under section 202 of the Unfunded Mandates 
Reform Act of 1995 is not required.

Small Business Regulatory Enforcement Fairness Act

    This rule is not a major rule under 5 U.S.C. 804(2), the Small 
Business Regulatory Enforcement Fairness Act. This rule:
    (1) Does not have an annual effect on the economy of $100 million 
or more;
    (2) Will not cause a major increase in costs or prices for 
consumers, individual industries, Federal, State, or local government 
agencies, or geographic regions; and
    (3) Does not have significant adverse effects on competition, 
employment, investment, productivity, innovation, or the ability of 
U.S.-based enterprises to compete with foreign-based enterprises.

Executive Order 12988

    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. In accordance with that Executive Order: (1) All State 
and local laws and regulations that are in conflict with this rule will 
be preempted; (2) no retroactive effect will be given to this rule; and 
(3) no administrative proceedings are required before bringing any 
judicial action regarding this rule.

Executive Order 13132

    In accordance with Executive Order 13132, this rulemaking does not 
have sufficient federalism implications to warrant the preparation of a 
Federalism Assessment. The policies contained in this rule do not have 
any substantial direct effect on the policymaking discretion of 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. Nor does this rule impose substantial 
direct compliance costs on State and local governments.

Executive Order 12372

    For the reasons set forth in the Final Rule Related Notice for 7 
CFR part 3015, subpart V (48 FR 29115, June 24, 1983), this program is 
excluded from the scope of the Executive Order 12372 which requires 
intergovernmental consultation with State and local officials. This 
program does not directly affect State and local governments.

Executive Order 13175

    The policies contained in this rulemaking do not have tribal 
implications and thus no further action is required under Executive 
Order 13175.

List of Subjects in 7 CFR Part 2903

    Agricultural commodities, Energy, Fuel, Fuel additives.

0
For the reasons set forth in the preamble, the Office of Energy Policy 
and New Uses amends title 7, subtitle B, chapter XXIX, of the Code of 
Federal Regulations by adding part 2903 to read as follows:

PART 2903--BIODIESEL FUEL EDUCATION PROGRAM

Subpart A--General Information
Sec.
2903.1 Applicability of regulations.
2903.2 Purpose of the program.
2903.3 Eligibility.
2903.4 Indirect costs.
2903.5 Matching requirements.
Subpart B--Program Description
2903.6 Project types.
2903.7 Project objectives.
Subpart C--Preparation of an Application
2903.8 Program application materials.
2903.9 Content of an application.
2903.10 Submission of an application.
2903.11 Acknowledgment of applications.
Subpart D--Application Review and Evaluation
2903.12 Application review.
2903.13 Evaluation criteria.
2903.14 Conflicts of interest and confidentiality.
Subpart E--Award Administration
2903.15 General.
2903.16 Organizational management information.
2903.17 Award document and notice of award.
Subpart F--Supplementary Information
2903.18 Access to review information.
2903.19 Use of funds; changes.
2903.20 Reporting requirements.
2903.21 Applicable Federal statutes and regulations.
2903.22 Confidential aspects of applications and awards.

[[Page 56140]]

2903.23 Definitions.

    Authority: 7 U.S.C. 8104; 5 U.S.C. 301.

Subpart A--General Information


Sec.  2903.1  Applicability of regulations.

    (a) The regulations of this part only apply to Biodiesel Fuel 
Education Program grants awarded under the provisions of section 9004 
of the Farm Security and Rural Investment Act of 2002 (FSRIA) (7 U.S.C. 
8104) which authorizes the Secretary to award competitive grants to 
eligible entities to educate governmental and private entities that 
operate vehicle fleets, other interested entities (as determined by the 
Secretary), and the public about the benefits of biodiesel fuel use. 
Eligibility is limited to nonprofit organizations and institutions of 
higher education (as defined in sec. 101 of the Higher Education Act of 
1965 (20 U.S.C. 1001)) that have demonstrated both knowledge of 
biodiesel fuel production, use, or distribution and the ability to 
conduct educational and technical support programs. The Secretary 
delegated this authority to the Chief Economist, who in turn delegated 
this authority to the Director of OEPNU.
    (b) The regulations of this part do not apply to grants awarded by 
the Department of Agriculture under any other authority.


Sec.  2903.2  Purpose of the program.

    The Biodiesel Fuel Education Program seeks to familiarize public 
and private vehicle fleet operators, other interested entities, and the 
public, with the benefits of biodiesel, a relatively new fuel option in 
the United States. It will also address concerns previously identified 
by fleet operators and other potential users of this alternative fuel, 
including the need to balance the positive environmental, social and 
human health impacts of biodiesel utilization with the increased per 
gallon cost to the user. It is the Program's goal to stimulate 
biodiesel demand and encourage the further development of a biodiesel 
industry in the United States.


Sec.  2903.3  Eligibility.

    (a) Eligibility is limited to nonprofit organizations and 
institutions of higher education that have demonstrated both knowledge 
of biodiesel fuel production, use, or distribution and the ability to 
conduct educational and technical support programs.
    (b) Award recipients may subcontract to organizations not eligible 
to apply provided such organizations are necessary for the conduct of 
the project.


Sec.  2903.4  Indirect costs.

    (a) For the Biodiesel Fuel Education Program, applicants should use 
the current indirect cost rate negotiated with the cognizant Federal 
negotiating agency. Indirect costs may not exceed the negotiated rate. 
If no indirect cost rate has been negotiated, a reasonable dollar 
amount for indirect costs may be requested, which will be subject to 
approval by USDA. In the latter case, if a proposal is recommended for 
funding, an indirect cost rate proposal must be submitted prior to 
award to support the amount of indirect costs requested.
    (b) A proposer may elect not to charge indirect costs and, instead, 
charge only direct costs to grant funds. Grantees electing this 
alternative will not be allowed to charge, as direct costs, indirect 
costs that otherwise would be in the grantee's indirect cost pool under 
the applicable Office of Management and Budget cost principles. 
Grantees who request no indirect costs will not be permitted to revise 
their budgets at a later date to charge indirect costs to grant funds.


Sec.  2903.5  Matching requirements.

    There are no matching funds requirements for the Biodiesel Fuel 
Education Program and matching resources will not be factored into the 
review process as evaluation criteria.

Subpart B--Program Description


Sec.  2903.6  Project types.

    OEPNU intends to award continuation grants to successful Biodiesel 
Fuel Education Program applicants. A continuation grant is a grant 
instrument by which the Department agrees to support a specified level 
of effort for a predetermined project period 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 government support would be in the best 
interest of the Federal government and the public. If these three 
elements are met, OEPNU plans to provide additional support to the 
funded project(s).


Sec.  2903.7  Project objectives.

    (a) Successful projects will develop practical indicators or 
milestones to measure their progress towards achieving the following 
objectives:
    (1) Enhance current efforts to collect and disseminate biodiesel 
information;
    (2) Coordinate with other biodiesel educational or promotional 
programs, and with Federal, State and local programs aimed at 
encouraging biodiesel use, including the EPAct program;
    (3) Create a nationwide networking system that delivers biodiesel 
information to targeted audiences, including users, distributors and 
other infrastructure-related personnel;
    (4) Identify and document the benefits of biodiesel (e.g., 
lifecycle costing); and
    (5) Gather data pertaining to information gaps and develop 
strategies to address the gaps.
    (b) [Reserved]

Subpart C--Preparation of an Application


Sec.  2903.8  Program application materials.

    OEPNU will publish periodic program announcements to notify 
potential applicants of the availability of funds for competitive 
continuation grants. The program announcement will provide information 
about obtaining program application materials.


Sec.  2903.9  Content of an application.

    (a) Applications should be prepared following the guidelines and 
the instructions in the program announcement. At a minimum, 
applications shall include: a proposal cover page, project summary, 
project description, information about key personnel, documentation of 
collaborative arrangements, information about potential conflicts-of-
interest, budget forms and a budget narrative, information about 
current and pending support, and assurance statements.
    (b) Proper preparation of applications will assist reviewers in 
evaluating the merits of each application in a systematic, consistent 
fashion. Specific instructions regarding additional application content 
requirements and the ordering of application contents will be included 
in the program announcement. These will include instructions about 
paper size, margins, font type and size, line spacing, page numbering, 
the inclusion of illustrations, and electronic submission.


Sec.  2903.10  Submission of an application.

    The program announcement will provide the deadline date for 
submitting an application, the number of copies of each application 
that must be submitted, and the address to which proposals must be 
submitted.


Sec.  2903.11  Acknowledgment of applications.

    The receipt of all applications will be acknowledged. Applicants 
who do not receive an acknowledgment within 60 days of the submission 
deadline should contact the program contact indicated

[[Page 56141]]

on the program announcement. Once the application has been assigned a 
proposal number, that number should be cited on all future 
correspondence.

Subpart D--Application Review and Evaluation


Sec.  2903.12  Application review.

    (a) Reviewers will include government and non-government 
individuals. All reviewers will be selected based upon training and 
experience in relevant scientific, extension, or education fields, 
taking into account the following factors:
    (1) The level of relevant formal scientific, technical education, 
or extension experience of the individual, as well as the extent to 
which an individual is engaged in relevant research, education, or 
extension activities; and
    (2) The need to include as reviewers experts from various areas of 
specialization within relevant scientific, education, or extension 
fields.
    (b) In addition, when selecting non-government reviewers, the 
following factors will be considered:
    (1) The 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;
    (2) The need to include as reviewers experts from a variety of 
organizational types (e.g., colleges, universities, industry, state and 
Federal agencies, private profit and non-profit organizations) and 
geographic locations;
    (3) The need to maintain a balanced composition of reviewers with 
regard to minority and female representation and an equitable age 
distribution; and
    (4) The need to include reviewers who can judge the effective 
usefulness to producers and the general public of each application.
    (c) Authorized departmental officers will compile application 
reviews and recommend awards to OEPNU. OEPNU will make final award 
decisions.


Sec.  2903.13  Evaluation criteria.

    (a) The following evaluation criteria will be used in reviewing 
applications submitted for the Biodiesel Fuel Education Program:
    (1) Relevance of proposed project to current and future issues 
related to the production, use, distribution, fuel quality, and fuel 
properties of biodiesel, including:
    (i) Demonstrated knowledge about markets, state initiatives, 
impacts on local economies, regulatory issues, standards, and technical 
issues;
    (ii) Demonstrated knowledge about issues associated with developing 
a biodiesel infrastructure; and
    (iii) Quality and extent of stakeholder involvement in planning and 
accomplishment of program objectives.
    (2) Reasonableness of project proposal, including:
    (i) Sufficiency of scope and strategies to provide a consistent 
message in keeping with existing standards and regulations;
    (ii) Adequacy of Project Description, suitability and feasibility 
of methodology to develop and implement program;
    (iii) Clarity of objectives, milestones, and indicators of 
progress;
    (iv) Adequacy of plans for reporting, assessing and monitoring 
results over project's duration; and
    (v) Demonstration of feasibility, and probability of success.
    (3) Technical quality of proposed project, including:
    (i) Suitability and qualifications of key project personnel;
    (ii) Institutional experience and competence in providing 
alternative fuel education, including:
    (A) Demonstrated knowledge about programs involved in alternative 
fuel research and education;
    (B) Demonstrated knowledge about other fuels, fuel additives, 
engine performance, fuel quality and fuel emissions;
    (C) Demonstrated knowledge about Federal, State and local programs 
aimed at encouraging alternative fuel use;
    (D) Demonstrated ability in providing educational programs and 
developing technical programs; and
    (E) Demonstrated ability to analyze technical information relevant 
to the biodiesel industry.
    (iii) Adequacy of available or obtainable resources; and
    (iv) Quality of plans to administer and maintain the project, 
including collaborative efforts, evaluation and monitoring efforts.
    (b) [Reserved]


Sec.  2903.14  Conflicts of interest and confidentiality.

    (a) During the peer evaluation process, extreme care will be taken 
to prevent any actual or perceived conflicts of interest that may 
impact review or evaluation. Determinations of conflicts of interest 
will be based on the academic and administrative autonomy of an 
institution. The program announcement will specify the methodology for 
determining such autonomy.
    (b) 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. In addition, the identities of peer reviewers will remain 
confidential throughout the entire review process. Therefore, the names 
of the reviewers will not be released to applicants. At the end of the 
fiscal year, names of reviewers will be made available in such a way 
that the reviewers cannot be identified with the review of any 
particular application.

Subpart E--Award Administration


Sec.  2903.15  General.

    Within the limit of funds available for such purpose, the 
Authorized Departmental Officer (ADO) shall make grants to those 
responsible, eligible applicants whose applications are judged most 
meritorious under the procedures set forth in this part. The date 
specified by the ADO as the effective date of the grant shall be no 
later than September 30 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 grant effective date, but as soon 
thereafter as practical so that project goals may be attained within 
the funded project period. All funds granted by OEPNU under this 
program shall be expended solely for the purpose for which the funds 
are granted in accordance with the approved application and budget, the 
regulations of this part, the terms and conditions of the award, the 
applicable Federal cost principles, and the applicable Department 
assistance regulations (including part 3019 of this title).


Sec.  2903.16  Organizational management information.

    Specific management information relating to an applicant shall be 
submitted on a one-time basis as part of the responsibility 
determination prior to the award of a grant identified under this 
program, if such information has not been provided previously. Copies 
of forms recommended for use in fulfilling these requirements will be 
provided as part of the preaward process.


Sec.  2903.17  Award document and notice of award.

    (a) The award document will provide pertinent instructions and 
information including, at a minimum, the following:
    (1) Legal name and address of performing organization or 
institution to whom OEPNU has issued an award under this program;
    (2) Title of project;

[[Page 56142]]

    (3) Name(s) and institution(s) of PDs chosen to direct and control 
approved activities;
    (4) Identifying award number assigned by the Department;
    (5) Project period;
    (6) Total amount of Departmental financial assistance approved by 
OEPNU during the project period;
    (7) Legal authority(ies) under which the award is issued;
    (8) Appropriate Catalog of Federal Domestic Assistance (CFDA) 
number;
    (9) Approved budget plan for categorizing allocable project funds 
to accomplish the stated purpose of the award; and
    (10) Other information or provisions deemed necessary by OEPNU and 
the Authorized Departmental Officer to carry out the awarding 
activities or to accomplish the purpose of a particular award.
    (b) [Reserved]

Subpart F--Supplementary Information


Sec.  2903.18  Access to review information.

    Copies of reviews, not including the identity of reviewers, and a 
summary of the comments will be sent to the applicant PD after the 
review process has been completed.


Sec.  2903.19  Use of funds; changes.

    (a) Delegation of fiscal responsibility. Unless the terms and 
conditions of the award state otherwise, the awardee may not in whole 
or in part delegate or transfer to another person, institution, or 
organization the responsibility for use or expenditure of award funds.
    (b) Changes in project plans. (1) The permissible changes by the 
awardee, PD(s), or other key project personnel in the approved project 
shall be limited to changes in methodology, techniques, or other 
similar aspects of the project to expedite achievement of the project's 
approved goals. If the awardee or the PD(s) is uncertain as to whether 
a change complies with this provision, the question must be referred to 
the Authorized Departmental Officer (ADO) for a final determination. 
The ADO is the signatory of the award document, not the program 
contact.
    (2) Changes in approved goals or objectives shall be requested by 
the awardee and approved in writing by the ADO prior to effecting such 
changes. In no event shall requests for such changes be approved which 
are outside the scope of the original approved project.
    (3) Changes in approved project leadership or the replacement or 
reassignment of other key project personnel shall be requested by the 
awardee and approved in writing by the ADO prior to effecting such 
changes.
    (4) Transfers of actual performance of the substantive programmatic 
work in whole or in part and provisions for payment of funds, whether 
or not Federal funds are involved, shall be requested by the awardee 
and approved in writing by the ADO prior to effecting such transfers, 
unless prescribed otherwise in the terms and conditions of the award.
    (5) Changes in project period. The project period may be extended 
by OEPNU without additional financial support, for such additional 
period(s) as the ADO determines may be necessary to complete or fulfill 
the purposes of an approved project, but in no case shall the total 
project period exceed five years. Any extension of time shall be 
conditioned upon prior request by the awardee and approval in writing 
by the ADO, unless prescribed otherwise in the terms and conditions of 
award.
    (6) Changes in approved budget. Changes in an approved budget must 
be requested by the awardee and approved in writing by the ADO prior to 
instituting such changes if the revision will involve transfers or 
expenditures of amounts requiring prior approval as set forth in the 
applicable Federal cost principles, Departmental regulations, or award.


Sec.  2903.20  Reporting requirements.

    The award document will give instructions regarding the submission 
of progress reports, including the frequency and required contents of 
the reports.


Sec.  2903.21  Applicable Federal statutes and regulations.

    Several Federal statutes and regulations apply to grant 
applications considered for review and to project grants awarded under 
this program. 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 collection.
    7 CFR Part 15, subpart A--USDA implementation of Title VI of the 
Civil Rights Act of 1964, as amended.
    7 CFR Part 3017--USDA implementation of Governmentwide Debarment 
and Suspension (Nonprocurement) and Governmentwide Requirements for 
Drug-Free Workplace (Grants).
    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 A-110, Uniform 
Administrative Requirements for Grants and Other Agreements With 
Institutions of Higher Education, Hospitals, and Other Nonprofit 
Organizations.
    7 CFR Part 3052--USDA implementation of OMB Circular No. A-133, 
Audits of States, Local Governments, and Non-profit Organizations. 29 
U.S.C. 794 (sec. 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, controlling allocation of rights to 
inventions made by employees of small business firms and domestic 
nonprofit organizations, including universities, in Federally assisted 
programs (implementing regulations are contained in 37 CFR part 401).


Sec.  2903.22  Confidential aspects of applications and awards.

    When an application results in an award, it becomes a part of the 
record of USDA transactions, available to the public upon specific 
request. Information that the Secretary determines to be of a 
confidential, privileged, or proprietary nature will be held in 
confidence to the extent permitted by law. Therefore, any information 
that the applicant wishes to have considered as confidential, 
privileged, or proprietary should be clearly marked within the 
application. The original copy of an application that does not result 
in an award will be retained by the Agency for a period of one year. 
Other copies will be destroyed. Such an application will be released 
only with the consent of the applicant or to the extent required by 
law. An application may be withdrawn at any time prior to the final 
action thereon.


Sec.  2903.23  Definitions.

    For the purpose of this program, the following definitions are 
applicable:
    Authorized departmental officer or ADO means the Secretary or any 
employee of the Department who has the authority to issue or modify 
grant instruments on behalf of the Secretary.
    Authorized organizational representative or AOR 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.

[[Page 56143]]

    Biodiesel means a monoalkyl ester that meets the requirements of an 
appropriate American Society for Testing and Materials Standard.
    Budget period means the interval of time (usually 12 months) into 
which the project period is divided for budgetary and reporting 
purposes.
    Department or USDA means the United States Department of 
Agriculture.
    Education activity means an act or process that imparts knowledge 
or skills through formal or informal training and outreach.
    Grant means the award by the Secretary of funds to an eligible 
recipient for the purpose of conducting the identified project.
    Grantee means the organization designated in the award document as 
the responsible legal entity to which a grant is awarded.
    Institution of higher education, as defined in sec. 101 of the 
Higher Education Act of 1965 (20 U.S.C. 1001), means an educational 
institution in any State that:
    (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 the institution 
awards a bachelor's degree or provides not less than a two-year program 
that is acceptable for full credit toward such a degree;
    (4) Is a public or other nonprofit institution; and
    (5) Is accredited by a nationally recognized accrediting agency or 
association, or if not so accredited, is an institution that has been 
granted preaccreditation status by such an agency or association that 
has been recognized by the Secretary of Education for the granting of 
preaccreditation status, and the Secretary of Education has determined 
that there is satisfactory assurance that the institution will meet the 
accreditation standards of such an agency or association within a 
reasonable time.
    OEPNU means the Office of Energy Policy and New Uses.
    Peer review is an evaluation of a proposed project performed by 
experts with the scientific knowledge and technical skills to conduct 
the proposed work whereby the technical quality and relevance to the 
program are assessed.
    Prior approval means written approval evidencing prior consent by 
an authorized departmental officer (as defined in this section).
    Program means the Biodiesel Fuel Education Program.
    Project means the particular activity within the scope of the 
program supported by a grant award.
    Project director or PD means the single individual designated by 
the grantee in the grant application and approved by the Secretary who 
is responsible for the direction and management of the project, also 
known as a principal investigator for research activities.
    Project period means the period, as stated in the award document 
and modifications thereto, if any, during which Federal sponsorship 
begins and ends.
    Secretary means the Secretary of Agriculture and any other officer 
or employee of the Department to whom the authority involved may be 
delegated.

    Dated: September 24, 2003.
Roger Conway,
Director, Office of Energy Policy and New Uses.
[FR Doc. 03-24727 Filed 9-29-03; 8:45 am]
BILLING CODE 3410-22-P