[Federal Register Volume 69, Number 206 (Tuesday, October 26, 2004)]
[Rules and Regulations]
[Pages 62536-62542]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-23896]



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Part III





Department of Agriculture





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Cooperative State Research, Education, and Extension Service



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7 CFR Part 3402



Food and Agricultural Sciences National Needs Graduate and Postgraduate 
Fellowship Grants Program; Final Rule

  Federal Register / Vol. 69, No. 206 / Tuesday, October 26, 2004 / 
Rules and Regulations  

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DEPARTMENT OF AGRICULTURE

Cooperative State Research, Education, and Extension Service

7 CFR Part 3402

[Regulation Identifier Number: 0524-AA30]


Food and Agricultural Sciences National Needs Graduate and 
Postgraduate Fellowship Grants Program

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

ACTION: Final rule.

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SUMMARY: The Cooperative State Research, Education, and Extension 
Service (CSREES) revises administrative provisions for the Food and 
Agricultural Sciences National Needs Graduate Fellowship Grants 
Program. The revisions relax constraints that are causing grantees to 
return unexpended funds to CSREES and provide support to the training 
of students awarded Fellowships from grants of the Program.

DATES: This rule is effective October 26, 2004.

FOR FURTHER INFORMATION CONTACT: Jeffrey L. Gilmore, Ph.D.; Director, 
Higher Education Programs; Phone: 202-720-1973 Fax: 202-720-2030; e-
mail: [email protected].

SUPPLEMENTARY INFORMATION:

Background

    On July 12, 2004, CSREES published a Proposed Rule (69 FR 41763, 
Jul. 12, 2004) to revise administrative provisions for the Food and 
Agricultural Sciences National Needs Graduate Fellowship Grants 
Program.

Adoption of Proposal as Final Rule

    In the Proposed Rule, CSREES invited comments, which were due by 
August 11, 2004. The Agency received one comment which condemned the 
Food and Agricultural Sciences National Needs Graduate Fellowship 
Grants Program for wasting taxpayer money and asked that Congress 
terminate support for it.
    The commenter is not clear that CSREES uses a competitive process 
to make awards. The Agency solicits applications, and bases award 
decisions on recommendations from a panel of subject matter experts, 
drawn from colleges, private associations, and appropriate government 
agencies. ``National Needs'' refer to those scientific disciplines 
where, according to national data supplied by the U.S. Department of 
Education and U.S. Bureau of Labor Statistics, there are projected 
shortages of scientific personnel required for the U.S. These can 
change and, as a result, are described in program solicitations.
    The commenter questions the value of studying abroad. However, 
modern agriculture is a global enterprise and funded trips allow 
students to round out their education and/or prepare dissertations. 
Concern was expressed over eligibility, which includes foreign 
nationals, people who are legally extended the rights of citizenship, 
and excludes illegal aliens.
    The commenter also states that the Agency discriminates by setting 
aside funds for minorities. The awards do not specifically target 
minority students or minority student groups. The legislation that 
authorizes this program identifies eligible institutions and, to 
maximize inclusivity, specifically mentions colleges/universities that 
have significant minority enrollments and demonstrable capacity for 
teaching food and agricultural sciences.
    Finally, the commenter states that one year should be the maximum 
amount of time USDA supports a Fellow. CSREES does not deem this to be 
a sufficient amount of time to support a Fellow because this program 
intends to provide for students for the duration of their coursework to 
ensure that they complete degree requirements.
    Upon further consideration, CSREES is issuing the Final Rule as it 
was proposed. No public meeting was requested or held.

Purpose

    The former rule (7 CFR part 3402) required that grantees refund all 
unexpended money to the Agency, if (1) Fellows are not appointed within 
15 months of the effective date of the grant; or (2) Fellowships are 
prematurely terminated. The Agency uses refunded money to provide 
Fellows with supplemental grants for international travel and thesis/
dissertation travel. Numerous stakeholders expressed dissatisfaction 
with the requirement to refund unexpended grant funds. CSREES concluded 
that the Fellowship Program's purpose is better served by extending the 
amount of time for Fellowship appointment and permitting grantees to 
recruit and train replacement Fellows.
    The former rule required that (1) new Graduate Fellows are newly 
recruited; and (2) have a strong interest in preparing for careers as 
food or agricultural scientists or professionals. Project Directors 
indicated that the recruitment restriction limited their ability to 
gauge whether new Fellows had the requisite interest. To give Project 
Directors more time to interact with potential Graduate Fellows before 
recruiting them into the Program, the Final Rule allows them to appoint 
students who have completed less than two semesters of full-time study 
as new Graduate Fellows.
    Under the former rule, a grantee could award a Fellowship to a 
student enrolled as a master's or doctoral degree candidate, but a 
grantee was prohibited from awarding a Fellowship to a postdoctoral 
candidate. Because of the new and multidisciplinary expertise required 
of the next generation of food and agricultural scientists, 
stakeholders and CSREES concluded that postdoctoral training is an 
integral part of their preparation.
    During the period of support, the former rule restricted Fellows 
from accepting employment from their sponsoring institution or any 
other agency. Grantees complained that this unfairly prohibited Fellows 
from participating in assistantships or other employment opportunities 
that included, as compensation, tuition waivers. At the discretion of 
sponsoring institutions, this Final Rule allows Fellows to accept 
additional supplemental employment that positively contributes to their 
training or research and provides eligibility for tuition waivers.
    The Agency revises the existing rule for the Food and Agricultural 
Sciences National Needs Graduate Fellowship Grants Program at 7 CFR 
part 3402 to address these problems. This Final Rule allows grantees up 
to 18 months after award to appoint Fellows, and permits the 
recruitment and training of replacement Fellows under certain 
circumstances. This Final Rule permits grantees to appoint as new 
Graduate Fellows students who have completed less than two semesters of 
full-time study. It also permits the Agency to fund postdoctoral 
Fellows preparing for a career in agricultural research, teaching or 
extension. Finally, this Final Rule authorizes Fellows, at the 
discretion of their institutions, to accept additional supplemental 
employment that will contribute to their training or research and 
provide eligibility for tuition waivers (e.g., full or partial tuition 
waivers provided with research or teaching assignments).

Paperwork Reduction Act of 1995--Information Collection

    Under the provisions of the Paperwork Reduction Act of 1995 (44 
U.S.C. chapter 35), the collection of information requirements 
contained in

[[Page 62537]]

this Final Rule have been approved (OMB Approval No. 0524-0039).

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 the majority of awards will be made to colleges and universities 
that do not qualify as small 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 the 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; (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 3402

    Administrative practice and procedure, Colleges and universities, 
Educational study programs, Grant programs--agriculture, Scholarships 
and fellowships.


0
For the reasons stated in the preamble, the Cooperative State Research, 
Education, and Extension Service revises title 7, part 3402 to read as 
follows:

PART 3402--FOOD AND AGRICULTURAL SCIENCES NATIONAL NEEDS GRADUATE 
AND POSTGRADUATE FELLOWSHIP GRANTS PROGRAM

Subpart A--General Introduction
Sec.
3402.1 Applicability of regulations.
3402.2 Definitions.
3402.3 Institutional eligibility.
Subpart B--Program Description
3402.4 Food and agricultural sciences areas targeted for National 
Needs Graduate and Postdoctoral Fellowship Grants Program support.
3402.5 Overview of National Needs Graduate and Postdoctoral 
Fellowship Grants Program.
3402.6 Overview of the special international study and/or thesis/
dissertation research travel allowance.
3402.7 Fellowship appointments.
3402.8 Fellowship activities.
3402.9 Financial provisions.
Subpart C--Preparation of an Application
3402.10 Application package.
3402.11 Proposal cover page.
3402.12 Project summary.
3402.13 National need narrative.
3402.14 Budget and budget narrative.
3402.15 Faculty vitae.
3402.16 Appendix.
Subpart D--Submission and Evaluation of an Application
3402.17 Where to submit an application.
3402.18 Evaluation criteria.
Subpart E--Supplementary Information
3402.19 Terms and conditions of grant awards.
3402.20 Other Federal statutes and regulations that apply.
3402.21 Confidential aspects of applications and awards.
3402.22 Access to peer review information.
3402.23 Documentation of progress on funded projects.
3402.24 Evaluation of program.

    Authority: 7 U.S.C. 3316.

Subpart A--General Introduction


Sec.  3402.1  Applicability of regulations.

    (a) The regulations of this part apply to competitive grants 
awarded under the provisions of section 1417(b)(6) of the National 
Agricultural Research, Extension and Teaching Policy Act of 1977, as 
amended, 7 U.S.C. 3152(b)(6). The Act designates the U.S. Department of 
Agriculture (USDA) as the lead Federal agency for agricultural 
research, extension, and teaching in the food and agricultural 
sciences. Section 1417(b)(6) authorizes the Secretary of Agriculture, 
who has delegated the authority to the Cooperative State Research, 
Education, and Extension Service (CSREES), to make competitive grants 
to land-grant colleges and universities, colleges and universities 
having significant minority enrollments and a demonstrable capacity to 
carry out the teaching of food and agricultural sciences, and to other 
colleges and universities having a demonstrable capacity to carry out 
the teaching of food and agricultural sciences, to administer and 
conduct

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graduate and postdoctoral fellowship programs to help meet the Nation's 
needs for development of scientific and professional expertise in the 
food and agricultural sciences. The Graduate Fellowships are intended 
to encourage outstanding students to pursue and complete graduate 
degrees in the areas of food and agricultural sciences designated by 
CSREES through the Office of Higher Education Programs (HEP) as 
national needs. The postdoctoral Fellowships are intended to provide 
additional mentoring and training to outstanding USDA Graduate Fellows 
who completed their doctoral degrees no more than five (5) years before 
they begin the postdoctoral Fellowships.
    (b) The regulations of this part do not apply to grants awarded by 
the Department of Agriculture under any other authority.


Sec.  3402.2  Definitions.

    As used in this part:
    Citizen or national of the United States means--
    (1) A citizen or native resident of a State; or,
    (2) A person defined in the Immigration and Nationality Act, 8 
U.S.C. 1101(a)(22), who, though not a citizen of the United States, 
owes permanent allegiance to the United States.
    College and university means an educational institution in any 
State which--
    (1) Admits as regular students only persons having a certificate of 
graduation from a school providing secondary education, or the 
recognized equivalent of such a certificate,
    (2) Is legally authorized within such State to provide a program of 
education beyond secondary education,
    (3) Provides an educational program for which a bachelor's degree 
or any other higher degree is awarded,
    (4) Is a public or other nonprofit institution, and
    (5) Is accredited by a nationally recognized accrediting agency or 
association.
    Food and agricultural sciences means basic, applied, and 
developmental research, extension, and teaching activities in the food, 
agricultural, renewable natural resources, forestry, and physical and 
social sciences in the broadest sense of these terms including but not 
limited to research, extension and teaching activities concerned with 
the production, processing, marketing, distribution, conservation, 
consumption, research, and development of food and agriculturally 
related products and services, inclusive of programs in agriculture, 
natural resources, aquaculture, forestry, veterinary medicine, home 
economics, rural development, and closely allied fields.
    Graduate degree means a master's or doctoral degree.
    State means any one of the fifty States, the Commonwealth of Puerto 
Rico, Guam, American Samoa, the Commonwealth of the Northern Marianas, 
the Federated States of Micronesia, the Republic of the Marshall 
Islands, the Republic of Palau, the Virgin Islands of the United 
States, and the District of Columbia.
    Teaching activities means formal classroom instruction, laboratory 
instruction, and practicum experience specific to the food and 
agricultural sciences and matters relating thereto conducted by 
colleges and universities offering baccalaureate or higher degrees.


Sec.  3402.3  Institutional eligibility.

    Applications may be submitted by land-grant colleges and 
universities, by colleges and universities having significant minority 
enrollments and a demonstrable capacity to carry out the teaching of 
food and agricultural sciences, and by other colleges and universities 
having a demonstrable capacity to carry out the teaching of food and 
agricultural sciences. All applicants must be institutions that confer 
a graduate degree in at least one area of the food and agricultural 
sciences targeted for National Needs Fellowships, that have a 
significant on-going commitment to the food and agricultural sciences 
generally, and that have a significant ongoing commitment to the 
specific subject area for which a grant application is made. It is the 
objective to award grants to colleges and universities which have 
notable teaching and research competencies in the food and agricultural 
sciences. The Graduate Fellowships are specifically intended to support 
programs that encourage outstanding students to pursue and complete a 
graduate degree at such institutions in an area of the food and 
agricultural sciences for which there is a national need for the 
development of scientific and professional expertise. The postdoctoral 
Fellowships are designed to support academic programs that provide 
additional training and mentoring to USDA Graduate Fellows and have 
notable teaching and research competencies in the CSREES designated 
national need areas. Institutions which currently have excellent 
programs of graduate study and training in the food and agricultural 
sciences dealing with targeted national needs are particularly 
encouraged to apply for all National Needs Fellowships.

Subpart B--Program Description


Sec.  3402.4  Food and agricultural sciences areas targeted for 
National Needs Graduate and Postdoctoral Fellowship Grants Program 
support.

    Areas of the food and agricultural sciences, including 
multidisciplinary studies, appropriate for Fellowship grant 
applications are those in which developing shortages of expertise have 
been determined and targeted by HEP for National Needs Graduate and 
Postdoctoral Fellowship Grants Program support. When funds are 
available and HEP determines that a new competition is warranted, the 
specific areas and funds per area will be identified in a funding 
opportunity announcement announcing the program and soliciting program 
applications.


Sec.  3402.5  Overview of National Needs Graduate and Postdoctoral 
Fellowship Grants Program.

    (a) The program will provide funds for a limited number of grants 
to support graduate student stipends and cost-of-education 
institutional allowances. These grants will be awarded competitively to 
eligible institutions. In order to encourage the development of special 
activities that are expected to contribute to Fellows' advanced degree 
objectives, the program will also provide competitive, special 
international study or thesis/dissertation research travel allowances 
for a limited number of USDA Graduate Fellows. To encourage academic 
institutions to provide additional training/mentoring to outstanding 
USDA Graduate Fellows who have completed their doctoral degrees, the 
program will also provide postdoctoral Fellowship grants to a limited 
number of USDA Graduate Fellows.
    (b) Based on the amount of funds appropriated in any fiscal year, 
HEP will determine:
    (1) Whether new competitions for graduate Fellowships, postdoctoral 
Fellowships, and/or special international study or thesis/dissertation 
research travel allowances will be held during that fiscal year;
    (2) The degree level(s) to be supported--master's, doctoral and/or 
postdoctoral;
    (3) The proportion of appropriations to be targeted for Fellowship 
stipends for each respective degree level supported;
    (4) The proportion of appropriations to be targeted for the cost-
of-education institutional allowances for each respective degree level 
supported;

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    (5) The proportion of appropriations to be targeted for the special 
international study or thesis/dissertation research travel allowances 
for each respective degree level supported;
    (6) The allowable stipend amount for each respective degree level 
supported, the cost-of-education institutional allowance for each 
respective degree level supported, and the maximum funds available for 
each special international study or thesis/dissertation research travel 
allowance for each respective degree level supported;
    (7) The activities for which the cost-of-education allowance may be 
used for awards made in that year; and
    (8) The maximum total funds that may be awarded to an institution 
under the program in a given fiscal year.
    (c) HEP will also determine:
    (1) The maximum number of national needs areas for which funding 
may be requested in a single application;
    (2) The degree levels for which funding may be requested in a 
single application;
    (3) The minimum and maximum number of fellowships for which an 
institution may apply in a single application; and
    (4) The limits on the total number of applications that can be 
submitted by an institution, college, school, or other administrative 
unit.
    (d) These determinations will be published as a part of the 
solicitation, which will be available at http://www.grants.gov.


Sec.  3402.6  Overview of the special international study and/or 
thesis/dissertation research travel allowance.

    (a) For each USDA Graduate Fellow who desires to be considered for 
a special international study or thesis/dissertation research travel 
allowance, the Project Director must apply to HEP for a supplemental 
grant in accordance with instructions published in the solicitation. 
Postdoctoral Fellows are not eligible to receive the special 
international study or thesis/dissertation research travel allowance. 
Each application must include a ``Proposal Cover Page'' (Form CSREES-
2002), ``Project Summary'' (Form CSREES-2003), ``Budget'' (Form CSREES-
2004) and National Environmental Policy Act Exclusions Form (Form 
CSREES--2006).
    (1) To provide HEP with sufficient information upon which to 
evaluate the merits of the requests for a special international study 
or thesis/dissertation research travel allowance, each application for 
a supplemental grant must contain a narrative which provides the 
following:
    (i) The specific destination(s) and duration of the travel;
    (ii) The specific study or thesis/dissertation research activities 
in which the Fellow will be engaged;
    (iii) How the international experience will contribute to the 
Fellow's program of study;
    (iv) A budget narrative specifying and justifying the dollar amount 
requested for the travel;
    (v) Summary credentials of the faculty or other professionals with 
whom the Fellow will be working during the international experience 
(summary credentials must not exceed three pages per person);
    (vi) A letter from the dean of the Fellow's college or equivalent 
administrative unit supporting the Fellow's travel request and 
certifying that the travel experience will not jeopardize the Fellow's 
satisfactory progress toward degree completion; and
    (vii) A letter from the fellowship grant Project Director 
certifying the Fellow's eligibility, the accuracy of the Fellow's 
travel request, and the relevance of the travel to the Fellow's 
advanced degree objectives.
    (2) The narrative portion of the application must not exceed the 
page limitation included in the program solicitation.
    (b) All complete requests will be evaluated by professional staff 
from USDA or other Federal agencies, as appropriate. Evaluation 
criteria will be published in the solicitation. HEP will award grants 
in accordance with evaluation criteria and to the extent possible based 
on availability of funds.
    (c) Any current Fellow with sufficient time to complete the 
international experience before the termination date of the grant under 
which he/she is supported is eligible for a special international study 
or thesis/dissertation research travel allowance. Before the 
international study or thesis/dissertation research travel may 
commence, a Fellow must have completed one academic year of full-time 
study, as defined by the institution, under the Fellowship appointment 
and arrangements must have been formalized for the Fellow to study and/
or conduct research in the foreign location(s).


Sec.  3402.7  Fellowship appointments.

    (a)(1) Fellows must be identified and Fellowships must be awarded 
within 18 months of the effective date of a grant. Institutions failing 
to meet this deadline will be required to refund monies associated with 
any unawarded Fellowship(s). Graduate Fellowship appointments may be 
held only by persons who enroll and pursue full-time study in a 
graduate degree program in the national need area and at the degree 
level supported by the grant. Postdoctoral Fellowship appointments may 
be held only by persons who pursue full-time traineeship in research, 
teaching or extension in the national need area and are supervised by 
the mentor indicated in the grant application.
    (2) It will be the responsibility of the grantee institution to 
award fellowships to students of superior academic ability.
    (3) Graduate Fellows:
    (i) Must be appointed before completing two semesters or equivalent 
hours of full-time study, as defined by the institution, or immediately 
after passing of candidacy/qualifying examinations, whichever is later;
    (ii) Must be citizens or nationals of the United States as 
determined in accordance with Federal law; and
    (iii) Must have strong interest, as judged by the institution, in 
pursuing a degree in a targeted national need area and in preparing for 
a career as a food or agricultural scientist or professional.
    (4) Postdoctoral Fellows:
    (i) Must have been USDA Graduate Fellows who successfully completed 
their doctoral degrees in areas of the food and agricultural sciences 
designated by CSREES as national need areas;
    (ii) Must not have obtained their doctoral degrees more than five 
years prior to beginning their postdoctoral Fellowships;
    (iii) Must have strong interest, as judged by the institution, in 
preparing for a career in agricultural research, teaching or extension.
    (5)(i) A doctoral level Graduate Fellow who maintains satisfactory 
progress in his or her course of study is eligible for support for a 
maximum of 36 months within a 42-month period. A master's level Fellow 
who maintains satisfactory progress in his or her course of study is 
eligible for support for a maximum of 24 months during a 30-month 
period. A postdoctoral Fellow who achieves his or her training 
objectives is eligible for support for a maximum of 36 months during a 
60-month period. It is the intent of this program that Graduate Fellows 
pursue full-time uninterrupted study or thesis/dissertation research, 
including time spent pursuing USDA-funded special international study 
or thesis/dissertation research activities.
    (ii) Postdoctoral Fellowship appointments may be held only by 
persons who pursue full-time

[[Page 62540]]

traineeship in research, teaching, or extension in the national need 
area and are supervised by the mentor indicated in the grant 
application.
    However, during the period of support, USDA Graduate and 
Postdoctoral Fellows are permitted, at the discretion of their 
institutions, to accept additional supplemental employment that would 
positively contribute to their training or research and provide 
eligibility for tuition waivers (e.g., full or partial tuition waivers 
with research or teaching assignments).
    (iii) For graduate Fellows requiring additional time to complete a 
degree, it is expected that the institution will endeavor to continue 
supporting individuals originally appointed to Fellowships through such 
other institutional means as teaching assistantships and research 
assistantships. For postdoctoral Fellows who terminate the Fellowships 
prematurely, the institution must return all unexpended monies to USDA. 
For USDA Graduate Fellows who complete the program of study early (less 
than 24 months for master's degree or 36 months for doctoral degree) or 
terminate their Fellowships prematurely, the institution may use any 
unexpended monies, within the time remaining on the project grant, to 
support pursuit of a doctoral degree in a discipline in the food and 
agricultural sciences by a master's degree level Fellow at the grantee 
institution; or a replacement Graduate Fellow. Where less than one 
semester/quarter remains before the expiration date of the Graduate 
Fellowship grant, the institution must refund any unexpended monies to 
the granting agency. Such funds cannot be used to increase the annual 
stipend amounts for current USDA Graduate or Postdoctoral Fellows.
    (b) Within the framework of the regulations in this part, all 
decisions with respect to the appointment of Fellows will be made by 
the institution. However, institutions are urged to take maximum 
advantage of opportunities for awarding Fellowships to members of 
underrepresented groups at the graduate and postdoctoral level in the 
food and agricultural sciences, particularly minorities and women. 
Throughout a USDA Graduate Fellow's tenure, the institution should 
satisfy itself that the Fellow is making satisfactory academic 
progress, and carrying out, or planning to carry out, national needs 
related research. If an institution finds it necessary to terminate 
support of a USDA Graduate Fellow or a postdoctoral Fellow for 
insufficient progress or by decision on the part of the Fellow, the 
Fellow may no longer receive funds from the active grant. However, 
termination does not automatically disqualify a Fellow from receiving 
future grant support under this program. If a graduate or postdoctoral 
Fellow finds it necessary to interrupt his or her program of study 
because of health, personal reasons, or outside employment, the 
institution must reserve the funds for the purpose of allowing the 
Fellow to resume funded training any time within a six (6) month 
period. However, a USDA Graduate or Postdoctoral Fellow who finds it 
necessary to interrupt his/her program of training more than one time 
cannot exceed a total of six (6) months' cumulative leave status 
without forfeiting eligibility. For a USDA Graduate Fellowship 
terminated because of insufficient progress, by decision on the part of 
the Fellow, or reserved due to an interrupted program but not resumed 
within the required time period, the institution may use any unexpended 
monies to support, within the time remaining on the project grant, and 
subject to the limitations above, a replacement Fellow at the same 
master's or doctoral levels. For postdoctoral Fellowships terminated 
because of insufficient progress, by decision on the part of the 
Fellow, or reserved due to an interrupted program but not resumed 
within the required time period, the institution must return all the 
unexpended monies to CSREES.
    (c) Only Fellows enrolled in master's programs of study may be 
supported under master's Fellowship grants. Master's degree level 
Fellows who complete their degree early may be supported under master's 
Fellowship grants, if they are enrolled in Ph.D. programs in areas of 
the food and agricultural sciences designated as national need areas. 
Only Fellows enrolled in doctoral programs of study may be supported 
under doctoral degree Fellowship grants. Only USDA Graduate Fellows who 
have completed their doctoral degrees may be supported under 
postdoctoral Fellowship grants.


Sec.  3402.8  Fellowship activities.

    A USDA Graduate Fellow shall be enrolled as a full-time graduate 
student, as defined by the institution, at all times during the tenure 
of the Fellowship in the national need area and at the degree level 
supported by the grant. This includes the time used for special 
international study or thesis/dissertation research, if the 
international travel is funded through a special international study or 
thesis/dissertation research travel allowance under this grant program. 
However, the normal requirement for formal registration during part of 
this tenure may be waived if permitted by the policy of the Fellowship 
institution, provided that the Graduate Fellow is making satisfactory 
progress toward degree completion and remains engaged in appropriate 
full-time Fellowship activities such as thesis/dissertation research. 
Postdoctoral Fellowship appointments may be held only by persons who 
pursue full-time traineeship in research, teaching, or extension in the 
national need area and are supervised by the mentor indicated in the 
grant application. Graduate and postdoctoral Fellows in academic 
institutions are not entitled to vacations as such. They are entitled 
to the short normal student holidays observed by the institution. The 
time between academic semesters or quarters is to be utilized as an 
active part of the grant period. During the period of support, USDA 
Graduate and Postdoctoral Fellows are permitted, at the discretion of 
their institutions, to accept additional supplemental employment that 
would positively contribute to their training or research and provide 
eligibility for tuition waivers (e.g., full or partial tuition waivers 
provided with research or teaching assignments). A Fellow may accept 
from any other entity a grant supporting the Fellow's research costs.


Sec.  3402.9  Financial provisions.

    An institution may elect to apply the cost-of-education/training 
institutional allowance to a Fellow's tuition, fees and laboratory 
expenses and to defray other program expenses (e.g., recruitment, 
travel, publications, or salaries of project personnel), unless stated 
otherwise in the solicitation. Tuition and fees are the responsibility 
of the Fellow unless an institution elects to use its cost-of-education 
institutional allowance for this purpose or elects to pay such costs 
out of non-USDA monies. No dependency allowances are provided to any 
USDA Graduate or Postdoctoral Fellows. Stipend payments and special 
international study or thesis/dissertation research travel allowances 
may be made to Fellows by the institution, in accordance with standard 
institutional procedures for graduate and postdoctoral fellowships and 
assistantships.

Subpart C--Preparation of an Application


Sec.  3402.10  Application package.

    Applications will be available at http://www.grants.gov and through 
the CSREES Web site. An application package will be made available to 
any

[[Page 62541]]

potential grant applicant upon request. This package will include all 
necessary forms and instructions to apply for a grant under this 
program.


Sec.  3402.11  Proposal cover page.

    The Proposal Cover Page, Form CSREES-2002, must be completed in its 
entirety, including all authorizing signatures. One copy of each grant 
application must contain the original pen-and-ink signatures, or 
approved electronic equivalent, of:
    (a) The Project Director(s); and
    (b) The Authorized Organizational Representative for the 
institution.


Sec.  3402.12  Project summary.

    Using the Project Summary, Form CSREES-2003, applicants must 
summarize the proposed graduate program of study and/or the academic 
and research strengths of the institution in the national need area for 
which funding is requested. To the extent possible, applicants should 
emphasize the uniqueness of the proposed program of training. The 
summary should not include any reference to the specific number of 
fellowships requested. The information on Form CSREES-2003 will be used 
in assigning the most appropriate panelists to review an application. 
If an application is supported, this Form may be used in program 
publications.


Sec.  3402.13  National need narrative.

    HEP will determine the composition of the narrative for each 
competition, including page limits, font size, the number and the order 
of sections, and other supporting information that may be required. 
Detailed instructions for preparing the narrative will be published in 
the solicitation.


Sec.  3402.14  Budget and budget narrative.

    Applicants must prepare the Budget, Form CSREES-2004, and a budget 
narrative identifying all costs associated with the application. 
Instructions for completing the Budget are provided with the form.


Sec.  3402.15  Faculty vitae.

    This section should include a Summary Vita, no more than 2 pages 
excluding publications listing, for each faculty member contributing 
significantly to institutional competence at the level of graduate 
study for the national need area addressed in the application. 
Applicants should arrange the faculty vitae with the Project 
Director(s) first, followed by the remaining faculty, in alphabetical 
order.


Sec.  3402.16  Appendix.

    Any additional supporting information deemed essential to enhancing 
the application should be included in an Appendix and referenced in the 
national need narrative.

Subpart D--Submission and Evaluation of an Application


Sec.  3402.17  Where to submit an application.

    The solicitation will indicate the date for submission of 
applications and the number of application copies required to apply for 
a grant. In addition, the solicitation will provide the address to 
which the application, the required number of accompanying duplicate 
copies, and any other required forms and materials should be sent.


Sec.  3402.18  Evaluation criteria.

    Applications addressing a particular national need area at a 
particular Fellowship level (master's, doctoral or postdoctoral) will 
be evaluated in competition with other applications addressing the same 
national need area at the same level. Both USDA internal staff and the 
panelists will evaluate applications on the basis of the criteria 
published in the solicitation.

Subpart E--Supplementary Information


Sec.  3402.19  Terms and conditions of grant awards.

    Within the limit of funds available for such purpose, the awarding 
official shall make project grants to those responsible, eligible 
applicants whose applications are judged most meritorious according to 
evaluation criteria stated in the solicitation. The beginning of the 
project period shall be no later than September 30 of the Federal 
fiscal year in which the project is approved for support. All funds 
granted under this part 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 Department's 
assistance regulations (parts 3015 and 3019 of 7 CFR).


Sec.  3402.20  Other Federal statutes and regulations that apply.

    Several Federal statutes and regulations apply to grant 
applications considered for review and to 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 331 and 9 CFR part 121--USDA implementation of the 
Agricultural Bioterrorism Protection Act of 2002.
    7 CFR part 3015, or any successor rule--USDA Uniform Federal 
Assistance Regulations, as amended, implementing OMB directives 
(i.e., Circular Nos. A-21 and A-122) and incorporating provisions of 
31 U.S.C. 6301-6308 (formerly the Federal Grant and Cooperative 
Agreement Act of 1977, Pub. L. No. 95-224), as well as general 
policy requirements applicable to recipients of Departmental 
financial assistance.
    7 CFR part 3017--USDA implementation of Government wide 
Debarment and Suspension (Nonprocurement) and Government wide 
Requirements for Drug-Free Workplace (Grants).
    7 CFR part 3018--USDA implementation of New Restrictions on 
Lobbying. Imposes prohibitions and requirements for disclosure and 
certification related to lobbying on recipients of Federal 
contracts, grants, cooperative agreements, and loans.
    7 CFR part 3019--USDA implementation of OMB Circular No. A-110, 
Uniform Administrative Requirements for Grants and 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 Nonprofit Organizations.
    7 CFR part 3407--CSREES implementation of the National 
Environmental Policy Act.
    29 U.S.C. 794, Section 504--Rehabilitation Act of 1973, and
    7 CFR part 15b (USDA implementation of statute), prohibiting 
discrimination based upon physical or mental handicap in Federally 
assisted programs.
    35 U.S.C. 200 et seq. --Bayh-Dole Act, 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.  3402.21  Confidential aspects of applications and awards.

    When an application results in a grant, the application and 
supporting information become part of the record of CSREES 
transactions, and 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.

[[Page 62542]]

The original copy of an application that does not result in a grant 
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.  3402.22  Access to peer review information.

    After final decisions have been announced, HEP will, upon request, 
inform the PD of the reasons for its decision on an application. 
Verbatim copies of summary reviews, not including the identity of the 
reviewers, will be made available to respective PDs upon specific 
request.


Sec.  3402.23  Documentation of progress on funded projects.

    (a) Fellowships/Scholarships Entry/Exit Forms (Form CSREES-2010) 
are available from CSREES upon request. Upon request by HEP, Project 
Directors awarded Graduate Fellowship (excluding supplemental 
international and postdoctoral) grants under the program shall complete 
and submit this form.
    (1) Appointment Information shall be submitted to HEP within 3 
months of appointment of a Fellow;
    (2) The Project Director shall submit an annual update of each 
Fellow's progress to HEP by September 30 each year. Additional progress 
reports may be needed to assess continuing progress of Fellows 
supported by any special international study or thesis/dissertation 
research allowance and/or institutional adherence to program 
guidelines.
    (3) Exit Information shall be completed and submitted to HEP by the 
Project Director for each Fellow supported by a grant as soon as a 
Fellow either: Graduates; is officially terminated from the Fellowship 
or the academic program due to unsatisfactory academic progress; or 
voluntarily withdraws from the Fellowship or the academic program. If a 
Fellow has not completed all degree requirements at the end of the 
five-year grant duration, HEP may request a preliminary exit report. In 
such a case, a final exit report shall be required at a later date. 
When a final exit report for each Fellow supported by a grant has been 
accepted by HEP, the grantee will have satisfied the requirement of a 
final performance report for the grant. Additional follow-up reports to 
track Fellows' career patterns may be requested.
    (b) All grantees (supplemental international, graduate, and 
postdoctoral) shall submit initial project information and annual and 
summary reports to CSREES' Current Research Information System (CRIS). 
The CRIS database contains narrative project information, progress/
impact statements, and final technical reports that are made available 
to the public. For applications recommended for funding, instructions 
on preparation and submission of project documentation will be provided 
to the applicant by the agency contact. Documentation must be submitted 
to CRIS before CSREES funds will be released. Project reports will be 
requested by the CRIS office when required. For more information about 
CRIS, visit http://cris.csrees.usda.gov.


Sec.  3402.24  Evaluation of program.

    Grantees should be aware that HEP may, as a part of its own program 
evaluation activities, carry out in-depth evaluations of assisted 
activities through independent third parties. Thus, grantees should be 
prepared to cooperate with evaluators retained by HEP to analyze both 
the institutional context and the impact of any supported project.

    Dated: October 19, 2004.
Daniel E. Kugler,
Acting Administrator, Cooperative State Research, Education, and 
Extension Service.
[FR Doc. 04-23896 Filed 10-25-04; 8:45 am]
BILLING CODE 3410-22-P