[Federal Register Volume 75, Number 113 (Monday, June 14, 2010)]
[Rules and Regulations]
[Pages 33497-33501]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-14159]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF AGRICULTURE

National Institute of Food and Agriculture

7 CFR Part 3430

[0524-AA61]


Competitive and Noncompetitive Nonformula Federal Assistance 
Programs--Administrative Provisions for Biomass Research and 
Development Initiative

AGENCY: National Institute of Food and Agriculture, USDA.

ACTION: Interim rule and request for comments.

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

SUMMARY: The National Institute of Food and Agriculture (NIFA), 
formerly the Cooperative State Research, Education, and Extension 
Service (CSREES), is publishing a set of specific administrative 
requirements for the Biomass Research and Development Initiative (BRDI) 
to supplement the Competitive and Noncompetitive Non-formula Federal 
Assistance Programs--General Award Administrative Provisions for this 
program. The BRDI is authorized under section 9008 of the Farm Security 
and Rural Investment Act of 2002 (FSRIA), as amended by the Food, 
Conservation, and Energy Act of 2008(FCEA).

DATES: This interim rule is effective on June 14, 2010. The Agency must 
receive comments on or before October 12, 2010.

ADDRESSES: You may submit comments, identified by 0524-AA61, by any of 
the following methods:
    Federal eRulemaking Portal: http://www.regulations.gov. Follow the 
instructions for submitting comments.
    E-mail: [email protected]. Include Regulatory Information Number 
(RIN) number 0524-AA61 in the subject line of the message.
    Fax: 202-401-7752.
    Mail: Paper, disk or CD-ROM submissions should be submitted to 
National Institute of Food and Agriculture; U.S. Department of 
Agriculture; STOP 2299; 1400 Independence Avenue, SW., Washington, DC 
20250-2299.
    Hand Delivery/Courier: National Institute of Food and Agriculture; 
U.S. Department of Agriculture; Room 2258, Waterfront Centre; 800 9th 
Street, SW.; Washington, DC 20024.
    Instructions: All comments submitted must include the agency name 
and the RIN for this rulemaking. All comments received will be posted 
without change to http://www.regulations.gov, including any personal 
information provided.

FOR FURTHER INFORMATION CONTACT: Carmela Bailey, National Program 
Leader, Plant and Animal Systems, National Institute of Food and 
Agriculture, U.S. Department of Agriculture, STOP 3356, 1400 
Independence Avenue, SW., Washington, DC 20250-2299; Voice: 202-401-
6443; Fax: 202-401-4888; e-mail: [email protected].

SUPPLEMENTARY INFORMATION:

I. Background and Summary

Authority

    Section 9008 of the Farm Security and Rural Investment Act of 2002 
(FSRIA), Public Law 107-171 (7 U.S.C. 8108), as amended by section 9001 
of the Food, Conservation, and Energy Act of 2008 (FCEA), Public Law 
110-246, provides authority to the Secretary of Agriculture and the 
Secretary of Energy, to establish and carry out a joint Biomass 
Research and Development Initiative (BRDI) under which competitively 
awarded grants, contracts, and financial assistance are provided to, or 
entered into with, eligible entities to carry out research on and 
development and demonstration of biofuels and biobased products; and 
the methods, practices, and technologies for the production of biofuels 
and biobased products. Should the Secretaries of USDA and DOE decide to 
make competitive Federal assistance awards under this authority, the 
rules contained within subpart K apply. Activities authorized under 
BRDI are carried out in consultation with the Biomass Research and 
Development Board, established in section 9008(c) of FSRIA and the 
Biomass Research and Development Technical Advisory committee 
established in section 9008(d) of FSRIA. The USDA authority to carry 
out this program has been delegated to NIFA through the Under Secretary 
for Research, Education, and Economics.

Purpose

    The objectives of BRDI are to develop (a) technologies and 
processes necessary for abundant commercial production of biofuels at 
prices competitive with fossil fuels; (b) high-value biobased products 
(1) to enhance the economic viability of biofuels and power, (2) to 
serve as substitutes for petroleum-based feedstocks and products, and 
(3) to enhance the value of coproducts produced using the technologies 
and processes; and (c) a diversity of economically and environmentally 
sustainable domestic sources of renewable biomass for conversion to 
biofuels, bioenergy, and biobased products.

Organization of 7 CFR Part 3430

    A primary function of NIFA is the fair, effective, and efficient 
administration of Federal assistance programs implementing agricultural 
research, education, and extension programs. As noted above, NIFA has 
been delegated the authority to administer this program and will be 
issuing Federal assistance awards for funding made available for this 
program; and thus, awards made under this authority will be subject to 
the Agency's assistance regulations at 7 CFR part 3430, Competitive and 
Noncompetitive Non-formula Federal Assistance Programs--General Award 
Administrative Provisions. The Agency's development and publication of 
these regulations for its non-formula Federal assistance programs serve 
to enhance its accountability and to standardize procedures across the 
Federal assistance programs it administers while providing transparency 
to the public. NIFA published 7 CFR part 3430 with subparts A through F 
as an interim rule on August 1, 2008 [73 FR 44897-44909] and as a final 
rule on [September 4, 2009] [74 FR 45736-45752]. These regulations 
apply to all Federal assistance programs administered by NIFA except 
for the formula grant programs identified in 7 CFR 3430.1(f), the Small 
Business Innovation Research programs, with implementing regulations at 
7 CFR part 3403, and the Veterinary Medicine Loan Repayment Program 
(VMLRP) authorized under section 1415A of the National Agricultural 
Research, Extension, and

[[Page 33498]]

Teaching Policy Act of 1977 (NARETPA).
    NIFA organized the regulation as follows: Subparts A through E 
provide administrative provisions for all competitive and 
noncompetitive non-formula Federal assistance awards. Subparts F and 
thereafter apply to specific NIFA programs.
    NIFA is, to the extent practical, using the following subpart 
template for each program authority: (1) Applicability of regulations, 
(2) purpose, (3) definitions (those in addition to or different from 
Sec.  3430.2), (4) eligibility, (5) project types and priorities, (6) 
funding restrictions (including indirect costs), and (7) matching 
requirements. Subparts F and thereafter contain the above seven 
components in this order. Additional sections may be added for a 
specific program if there are additional requirements or a need for 
additional rules for the program (e.g., additional reporting 
requirements). Through this rulemaking, NIFA is adding subpart K for 
the administrative provisions that are specific to the Federal 
assistance awards made under the BRDI authority.

Timeline for Implementing Regulations

    NIFA is publishing this rule as an interim rule with a 120-day 
comment period and anticipates publishing a final rule by November 1, 
2010. However, in the interim, these regulations apply to the Federal 
assistance awards made under the BRDI authority.

II. Administrative Requirements for the Proposed Rulemaking

Executive Order 12866

    This action has been determined to be not significant for purposes 
of Executive Order 12866, and therefore, has not been reviewed by the 
Office of Management and Budget. This interim rule will not create a 
serious inconsistency or otherwise interfere with an action taken or 
planned by another agency; nor will it materially alter the budgetary 
impact of entitlements, grants, user fees, or loan programs; nor will 
it have an annual effect on the economy of $100 million or more; nor 
will it adversely affect the economy, a sector of the economy, 
productivity, competition, jobs, the environment, public health or 
safety, or State, local, or tribal governments or communities in a 
material way. Furthermore, it does not raise a novel legal or policy 
issue arising out of legal mandates, the President's priorities or 
principles set forth in the Executive Order.

Regulatory Flexibility Act of 1980

    This interim rule has been reviewed in accordance with the 
Regulatory Flexibility Act of 1980, as amended by the Small Business 
Regulatory Enforcement Fairness Act of 1996, 5 U.S.C. 601-612. The 
Department concluded that the rule will not have a significant economic 
impact on a substantial number of small entities. The rule does not 
involve regulatory and informational requirements regarding businesses, 
organizations, and governmental jurisdictions subject to regulation.

Paperwork Reduction Act (PRA)

    The Department certifies that this interim rule has been assessed 
in accordance with the requirements of the Paperwork Reduction Act, 44 
U.S.C. 3501 et seq. (PRA). The Department concludes that this interim 
rule does not impose any new information requirements; however, the 
burden estimates will increase for existing approved information 
collections associated with this rule due to additional applicants. 
These estimates will be provided to OMB. In addition to the SF-424 form 
families (i.e., Research and Related and Mandatory), SF-425 Federal 
Financial Report, Financial Status Reports; NIFA has three currently 
approved OMB information collections associated with this rulemaking: 
OMB Information Collection No. 0524-0042, NIFA Current Research 
Information System (CRIS); No. 0524-0041, NIFA Application Review 
Process; and No. 0524-0026, Assurance of Compliance with the Department 
of Agriculture Regulations Assuring Civil Rights Compliance and 
Organizational Information.

Catalog of Federal Domestic Assistance

    This interim regulation applies to the Federal assistance program 
administered by NIFA under the Catalog for Federal Domestic Assistance 
(CFDA) No.10.312, Biomass Research and Development Initiative.

Unfunded Mandates Reform Act of 1995 and Executive Order 13132

    The Department has reviewed this interim rule in accordance with 
the requirements of Executive Order No. 13132 and the Unfunded Mandates 
Reform Act of 1995, 2 U.S.C. 1501 et seq., and has found no potential 
or substantial direct effects on 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. 
As there is no Federal mandate contained herein that could result in 
increased expenditures by State, local, or tribal governments, or by 
the private sector, the Department has not prepared a budgetary impact 
statement.

Executive Order 13175: Consultation and Coordination With Indian Tribal 
Governments

    The Department has reviewed this interim rule in accordance with 
Executive Order 13175, and has determined that it does not have 
``tribal implications.'' The interim rule does not ``have substantial 
direct effects on one or more Indian tribes, on the relationship 
between the Federal Government and Indian tribes, or on the 
distribution of power and responsibilities between the Federal 
Government and Indian tribes.''

Clarity of This Regulation

    Executive Order 12866 and the President's Memorandum of June 1, 
1998, require each agency to write all rules in plain language. The 
Department invites comments on how to make this interim rule easier to 
understand.

List of Subjects in 7 CFR Part 3430

    Administrative practice and procedure, Agricultural Research, 
Education, Extension, Federal assistance.

0
Accordingly, title 7 part 3430 of the Code of Federal Regulations is 
amended as set forth below:

PART 3430--COMPETITIVE AND NONCOMPETITIVE NON-FORMULA FEDERAL 
ASSISTANCE PROGRAMS--GENERAL AWARD ADMINISTRATIVE PROVSIONS

0
1. The authority for part 3430 continues to read as follows:

    Authority:  7 U.S.C. 3316; Pub. L. 106-107 (31 U.S.C. 6101 
note).


0
2. Add a new subpart K, to read as follows:
Subpart K--Biomass Research and Development Initiative
Sec.
3430.700 Applicability of regulations.
3430.701 Purpose.
3430.702 Definitions.
3430.703 Eligibility.
3430.704 Project types and priorities.
3430.705 Funding restrictions.
3430.706 Matching requirements.
3430.707 Administrative duties.
3430.708 Review criteria.
3430.709 Duration of awards.

Subpart K--Biomass Research and Development Initiative


Sec.  3430.700  Applicability of regulations.

    The regulations in this subpart apply to the Federal assistance 
awards made

[[Page 33499]]

under the program authorized under section 9008 of the Farm Security 
and Rural Investment Act of 2002, as amended by section 9001 of the 
Food, Conservation, and Energy Act of 2008 (Pub. L. 110-246).


Sec.  3430.701  Purpose.

    In carrying out the program, NIFA, in cooperation with the 
Department of Energy, is authorized to make competitive awards under 
section 9008(e) of FSRIA to develop:
    (a) Technologies and processes necessary for abundant commercial 
production of biofuels at prices competitive with fossil fuels;
    (b) High-value biobased products--
    (1) To enhance the economic viability of biofuels and power,
    (2) To serve as substitutes for petroleum-based feedstocks and 
products, and
    (3) To enhance the value of coproducts produced using the 
technologies and processes; and
    (c) A diversity of economically and environmentally sustainable 
domestic sources of renewable biomass for conversion to biofuels, 
bioenergy, and biobased products.


Sec.  3430.702  Definitions.

    The definitions specific to BRDI are from the authorizing 
legislation, the National Program Leadership of NIFA, and the 
Department of Energy. The definitions applicable to the program under 
this subpart include:
    Advanced Biofuel means fuel derived from renewable biomass other 
than corn kernel starch, including:
    (1) Biofuel derived from cellulose, hemicellulose, or lignin;
    (2) Biofuel derived from sugar and starch (other than ethanol 
derived from corn kernel starch);
    (3) Biofuel derived from waste material, including crop residue, 
other vegetative waste material, animal waste, food waste, and yard 
waste;
    (4) Diesel-equivalent fuel derived from renewable biomass, 
including algael oils, oil seed crops, re-claimed vegetable oils and 
animal fat;
    (5) Biogas (including landfill gas and sewage waste treatment gas) 
produced through the conversion of organic matter from renewable 
biomass;
    (6) Butanol or other alcohols produced through the conversion of 
organic matter from renewable biomass; and
    (7) Other fuel derived from cellulosic biomass.
    Advisory Committee means the Biomass Research and Development 
Technical Advisory Committee established by section 9008(d)(1) of 
FSRIA.
    Biobased Product means:
    (1) An industrial product (including chemicals, materials, and 
polymers) produced from biomass; or
    (2) A commercial or industrial product (including animal feed and 
electric power) derived in connection with the conversion of biomass to 
fuel.
    Bioenergy means power generated in the form of electricity or heat 
using biomass as a feedstock.
    Biofuel means a fuel derived from renewable biomass.
    Biomass Conversion Facility means a facility that converts or 
proposes to convert renewable biomass into:
    (1) Heat;
    (2) Power;
    (3) Biobased products; or
    (4) Advanced biofuels.
    Biorefinery means a facility (including equipment and processes) 
that--
    (1) Converts renewable biomass into biofuels and biobased products; 
and
    (2) May produce electricity.
    Board means the Biomass Research and Development Board established 
by section 9008(c) of the FSRIA of 2002 (7 U.S.C. 8108(c)).
    BRDI means the Biomass Research and Development Initiative.
    Cellulosic Biofuel means renewable fuel derived from any cellulose, 
hemicellulose, or lignin that is derived from renewable biomass and 
that has lifecycle greenhouse gas emissions, as determined by the 
Administrator of the Environmental Protection Agency, that are at least 
60 percent less than the baseline lifecycle greenhouse gas emissions.
    Demonstration means demonstration of technology in a pilot plant or 
semi-works scale facility, including a plant or facility located on a 
farm. A biorefinery demonstration is a system capable of processing a 
minimum of 50 tons/day of biomass feedstock.
    DOE means the Department of Energy.
    Institutions of higher education has the meaning given the term in 
section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002(a)).
    Intermediate Ingredient or Feedstock means a material or compound 
made in whole or in significant part from biological products, 
including renewable agricultural materials (including plant, animal, 
and marine materials) or forestry materials, that are subsequently used 
to make a more complex compound or product.
    Life cycle assessment means the comprehensive examination of a 
product's environmental and economic aspects and potential impacts 
throughout its lifetime, including raw material extraction, 
transportation, manufacturing, use, and disposal.
    Life cycle cost means the amortized annual cost of a product, 
including capital costs, installation costs, operating costs, 
maintenance costs, and disposal costs discounted over the lifetime of 
the product.
    Pilot Plant is an integrated chemical processing system that 
includes the processing units necessary to convert biomass feedstock 
into biofuels/bioenergy/biobased products at a minimum feed rate of 1 
ton/day of biomass feedstock.
    Private sector entities include companies, corporations, farms, 
ranches, cooperatives, and others that compete in the marketplace.
    Recovered materials means waste materials and by-products that have 
been recovered or diverted from solid waste, but such term does not 
include those materials and by-products generated from, and commonly 
reused within, an original manufacturing process (42 U.S.C. 6903 (19)).
    Recycling means the series of activities, including collection, 
separation, and processing, by which products or other materials are 
recovered from the solid waste stream for use in the form of raw 
materials in the manufacture of new products other than fuel for 
producing heat or power by combustion.
    Renewable Biomass means:
    (1) Materials, pre-commercial thinnings, or invasive species from 
National Forest System land (as defined in section 11(a) of the Forest 
and Rangeland Renewable Resources Planning Act of 1974 (16 U.S.C. 
1609(a)) and public lands (as defined in section 103 of the Federal 
Land Policy and Management Act of 1976 (43 U.S.C. 1702)) that--
    (i) Are byproducts of preventive treatments that are removed to 
reduce hazardous fuels; to reduce or contain disease or insect 
infestation; or to restore ecosystem health;
    (ii) Would not otherwise be used for higher-value products; and
    (iii) Are harvested in accordance with applicable law and land 
management plans; and the requirements for--
    (A) Old-growth maintenance, restoration, and management direction 
of paragraphs (2), (3), and (4) of subsection (e) of section 102 of the 
Healthy Forests Restoration Act of 2003 (16 U.S.C. 6512); and
    (B) Large-tree retention of subsection (f) of section 102 of the 
Healthy Forests Restoration Act of 2003 (16 U.S.C. 6512); or
    (2) Any organic matter that is available on a renewable or 
recurring basis from non-Federal land or land belonging to an Indian or 
Indian tribe

[[Page 33500]]

that is held in trust by the United States or subject to a restriction 
against alienation imposed by the United States, including--
    (i) Renewable plant material, including feed grains; other 
agricultural commodities; other plants and trees; and algae; and
    (ii) Waste material, including crop residue; other vegetative waste 
material (including wood waste and wood residues); animal waste and 
byproducts (including fats, oils, greases, and manure); and food waste 
and yard waste.
    Research and development (R&D) projects means a research project 
only, a development project only, or a combination of research and 
development project; however, an R&D project may not be submitted 
including a demonstration project or vice versa.
    Semi-works is a combination of chemical processing units that 
constitute a subset of the fully integrated system and are used to 
develop process flow diagrams and mass and energy balances for the 
purposes of scaling up to a demonstration scale facility.
    Transportation fuel means fuel for use in motor vehicles, motor 
vehicle engines, non-road vehicles, or non-road engines (except for 
ocean-going vessels).


Sec.  3430.703  Eligibility.

    To be eligible to receive an award under this subpart, the 
recipient shall be--
    (a) An institution of higher education (as defined in Sec.  
3430.702);
    (b) A National Laboratory;
    (c) A Federal research agency;
    (d) A State research agency;
    (e) A private sector entity (as defined in Sec.  3430.702 of this 
part);
    (f) A nonprofit organization; or
    (g) A consortium of two or more entities listed in paragraphs (a) 
through (f) of this section.


Sec.  3430.704  Project types and priorities.

    (a) Technical Topic Areas. Biomass Research and Development 
Initiative (BRDI) awards shall be directed (in consultation with the 
Biomass Research and Development Board, the Administrator of the 
Environmental Protection Agency and heads of other appropriate 
departments and agencies) in the following three primary technical 
topic areas:
    (1) Feedstocks Development. Research, development, and 
demonstration activities regarding feedstocks and feedstock logistics 
(including the harvest, handling, transport, preprocessing, and 
storage) relevant to production of raw materials for conversion to 
biofuels and biobased products.
    (2) Biofuels and Biobased Products Development. Research, 
development, and demonstration activities to support--
    (i) The development of diverse cost-effective technologies for the 
use of cellulosic biomass in the production of biofuels and biobased 
products; and
    (ii) Product diversification through technologies relevant to 
production of a range of biobased products (including chemicals, animal 
feeds, and cogenerated power) that potentially can increase the 
feasibility of fuel production in a biorefinery.
    (3) Biofuels Development Analysis--(i) Strategic Guidance. The 
development of analysis that provides strategic guidance for the 
application of renewable biomass technologies to improve sustainability 
and environmental quality, cost effectiveness, security, and rural 
economic development.
    (ii) Energy and Environmental Impact. Development of systematic 
evaluations of the impact of expanded biofuel production on the 
environment (including forest land) and on the food supply for humans 
and animals, including the improvement and development of tools for 
life cycle analysis of current and potential biofuels.
    (iii) Assessment of Federal Land. Assessments of the potential of 
Federal land resources to increase the production of feedstocks for 
biofuels and biobased products, consistent with the integrity of soil 
and water resources and with other environmental considerations.
    (b) Additional Considerations. Within the technical topic areas 
described in Sec.  3430.704(a)(3), NIFA, in cooperation with DOE, shall 
support research and development to--
    (1) Create continuously expanding opportunities for participants in 
existing biofuels production by seeking synergies and continuity with 
current technologies and practices;
    (2) Maximize the environmental, economic, and social benefits of 
production of biofuels and derived biobased products on a large scale; 
and
    (3) Facilitate small-scale production and local and on-farm use of 
biofuels, including the development of smallscale gasification 
technologies for production of biofuel from cellulosic feedstocks.


Sec.  3430.705  Funding restrictions.

    (a) Facility costs. Funds made available under this subpart shall 
not be used for the planning, repair, rehabilitation, acquisition, or 
construction of a building or facility.
    (b) Indirect costs. Subject to Sec.  3430.52 of this part, indirect 
costs are allowable for Federal assistance awards made by NIFA.
    (c) Minimum allocations. After consultation with the Board, NIFA in 
cooperation with DOE, shall require that each of the three technical 
topic areas described in Sec.  3430.704 of this part receive not less 
than 15 percent of funds made available to carry out BRDI.


Sec.  3430.706  Matching requirements.

    (a) Requirement for Research and/or Development Projects. The non-
Federal share of the cost of a research or development project under 
BRDI shall be not less than 20 percent of the total Federal funds 
awarded. NIFA may reduce the non-Federal share of a research or 
development project if the reduction is determined to be necessary and 
appropriate.
    (b) Requirement for Demonstration and Commercial Projects. The non-
Federal share of the cost of a demonstration or commercial project 
under BRDI shall be not less than 50 percent of the total Federal funds 
awarded.
    (c) Indirect costs. Use of indirect costs as in-kind matching 
contributions is subject to Sec.  3430.52 of this part.


Sec.  3430.707  Administrative duties.

    (a) After consultation with the Board, NIFA, in cooperation with 
DOE, shall:
    (1) Publish annually one or more joint requests for proposals for 
Federal assistance under BRDI; and
    (2) Require that Federal assistance under BRDI be awarded based on 
a scientific peer review by an independent panel of scientific and 
technical peers.
    (b) NIFA, in cooperation with DOE, shall ensure that applicable 
research results and technologies from the BRDI are:
    (1) Adapted, made available, and disseminated, as appropriate; and
    (2) Included in the best practices database established under 
section 1672C(e) of the Food, Agriculture, Conservation, and Trade Act 
of 1990.


Sec.  3430.708  Review criteria.

    (a) General. BRDI peer reviews of applications are conducted in 
accordance with requirements found in section 9008 of the Farm Security 
and Rural Investment Act of 2002 (FSRIA), Public Law 107-171 (7 U.S.C. 
8101 et seq.); section 103 of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7613); and regulations found in 
title 7 of the Code

[[Page 33501]]

of Federal Regulations, sections 3430.31 through 3430.37.
    (b) Additional Considerations. Special consideration will be given 
to applications that--
    (1) Involve a consortium of experts from multiple institutions;
    (2) Encourage the integration of disciplines and application of the 
best technical resources; and
    (3) Increase the geographic diversity of demonstration projects.


Sec.  3430.709  Duration of awards.

    The term of a Federal assistance award made for a BRDI project 
shall not exceed 5 years. No-cost extensions of time beyond the maximum 
award terms will not be considered or granted.

    Signed at Washington, DC, on June 4, 2010.
Roger Beachy,
Director, National Institute of Food and Agriculture.
[FR Doc. 2010-14159 Filed 6-11-10; 8:45 am]
BILLING CODE 3410-22-P