[Federal Register Volume 80, Number 205 (Friday, October 23, 2015)]
[Rules and Regulations]
[Pages 64309-64312]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-26848]


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DEPARTMENT OF AGRICULTURE

National Institute of Food and Agriculture

7 CFR Part 3430

RIN 0524-AA65


Competitive and Noncompetitive Non-Formula Federal Assistance 
Programs--Specific Administrative Provisions for the Food Insecurity 
Nutrition Incentive Grants Program

AGENCY: National Institute of Food and Agriculture, USDA.

ACTION: Final rule.

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SUMMARY: The National Institute of Food and Agriculture (NIFA) is 
publishing a final rule for the Food Insecurity Nutrition Incentive 
Grants Program. This final rule adds a subpart entitled ``Food 
Insecurity Nutrition Incentive Grants Program'' to the part entitled 
``Competitive and Noncompetitive Non-formula Federal Assistance 
Programs--General Award Administrative Provisions''.

DATES: This final rule becomes effective on October 23, 2015.

FOR FURTHER INFORMATION CONTACT: Lisa Scott-Morring, Policy Branch 
Chief, Policy and Oversight Division, Phone: 202-401-4515, Email: 
[email protected].

SUPPLEMENTARY INFORMATION:

I. Background and Summary

Authority

    The Food Insecurity Nutrition Incentive Program (FINI) is 
authorized under section 4405 of the Food, Conservation, and Energy Act 
of 2008 (7 U.S.C. 7517), as added by section 4208 of the Agricultural 
Act of 2014 (Pub. L. 113-79).

Organization of 7 CFR Part 3430

    A primary function of NIFA is the fair, effective, and efficient

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administration of Federal assistance programs implementing agricultural 
research, education, and extension programs. The awards made under the 
above authority are subject to the NIFA assistance regulations at 7 CFR 
part 3430, Competitive and Noncompetitive Non-formula Federal 
Assistance Programs--General Award Administrative Provisions. NIFA's 
development and publication of this part 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 E 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 capacity 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, with implementing regulations at 7 CFR part 3431.
    NIFA organized part 3430 as follows: Subparts A through E provide 
administrative provisions for all competitive and noncompetitive non-
capacity Federal assistance programs. 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; 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 P for the administrative provisions that are specific to 
the FINI program.

II. Administrative Requirements for the Rulemaking

Executive Order 12866

    This action has been determined to be not significant for purposes 
of Executive Order 12866. The 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. Further, 
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 final 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 
certifies that this final 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

    The Department certifies that this final rule has been assessed in 
accordance with the requirements of the Paperwork Reduction Act, 44 
U.S.C. 3501 et seq. The Department concludes that this final rule does 
not impose any new information requirements or increase the burden 
hours. In addition to the SF-424 form families (i.e., Research and 
Related and Mandatory) and the SF-425 Federal Financial Report (FFR) 
No. 0348-0061, NIFA has three currently approved OMB information 
collections associated with this rulemaking: OMB Information Collection 
No. 0524-0042, NIFA REEport; 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 final rule applies to the following Federal financial 
assistance programs administered by NIFA: CFDA No. 10.331 Food 
Insecurity Nutrition Incentive Grants Program.

Unfunded Mandates Reform Act of 1995 and Executive Order 13132

    The Department has reviewed this final 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.

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 final rule easier to 
understand.

List of Subjects in 7 CFR Part 3430

    Administrative practice and procedure, Agricultural research, Grant 
programs--agriculture, Privacy, Reporting and recordkeeping 
requirements.

    Accordingly, 7 CFR part 3430 is amended as set forth below:

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

0
1. The authority citation 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 subpart P to read as follows:
Subpart P--Food Insecurity Nutrition Incentive Program
Sec.
3430.1100 Applicability of regulations.
3430.1101 Purpose.
3430.1102 Definitions.
3430.1103 Eligibility.
3430.1104 Project types and priorities.
3430.1105 Funding restrictions.
3430.1106 Matching requirements.
3430.1107 Program requirements.
3430.1108 Priorities.

Subpart P--Food Insecurity Nutrition Incentive Program


Sec.  3430.1100  Applicability of regulations.

    The regulations in this subpart apply to the Food Insecurity 
Nutrition Incentive (FINI) grants program authorized under section 4405 
of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 7517), as 
added by section 4208 of the Agricultural Act of 2014 (Pub. L. 113-79).


Sec.  3430.1101  Purpose.

    The primary goal of the FINI grants program is to fund and evaluate 
projects intended to increase the purchase of

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fruits and vegetables by low-income consumers participating in 
Supplemental Nutrition Assistance Program (SNAP) by providing 
incentives at the point of purchase.


Sec.  3430.1102  Definitions.

    The definitions applicable to the FINI grants program under this 
subpart include:
    Community food assessment means a collaborative and participatory 
process that systematically examines a broad range of community food 
issues and assets, so as to inform change actions to make the community 
more food secure.
    Emergency feeding organization means a public or nonprofit 
organization that administers activities and projects (including the 
activities and projects of a charitable institution, a food bank, a 
food pantry, a hunger relief center, a soup kitchen, or a similar 
public or private nonprofit eligible recipient agency) providing 
nutrition assistance to relieve situations of emergency and distress 
through the provision of food to needy persons, including low-income 
and unemployed persons. (See 7 U.S.C. 7501).
    Exemplary practices means high quality community food security work 
that emphasizes food security, nutritional quality, environmental 
stewardship, and economic and social equity.
    Expert reviewers means individuals selected from among those 
recognized as uniquely qualified by training and experience in their 
respective fields to give expert advice on the merit of grant 
applications in such fields who evaluate eligible proposals submitted 
to this program in their respective area(s) of expertise.
    Food security means access to affordable, nutritious, and 
culturally appropriate food for all people at all times.
    Fruits and vegetables means, for the purposes of the incentives 
provided under these grants, any variety of fresh, canned, dried, or 
frozen whole or cut fruits and vegetables without added sugars, fats or 
oils, and salt (i.e. sodium).
    Logic model means a systematic and visual way to present and share 
an understanding of the relationships among resources available to 
operate a program, and includes: Planned activities and anticipated 
results; and the presentation of the resources, inputs, activities, 
outputs, outcomes and impacts.
    Outcomes means the changes in the wellbeing of individuals that can 
be attributed to a particular project, program, or policy, or that a 
program hopes to achieve over time. They indicate a measurable change 
in participant knowledge, attitudes, or behaviors.
    Process evaluation means examining program activities in terms of:
    (1) The age, sex, race, occupation, or other demographic variables 
of the target population;
    (2) The program's organization, funding, and staffing; and
    (3) The program's location and timing. Process evaluation focuses 
on program activities rather than outcomes.
    PromiseZone refers to designated high-poverty communities ``where 
the federal government will partner with and invest in communities to 
create jobs, leverage private investment, increase economic activity, 
expand educational opportunities, and improve public safety.'' See 
https://www.hudexchange.info/programs/promise-zones/.
    Nonprofit organization means a special type of organizationthat has 
been organized to meet specific tax-exempt purposes. To qualify for 
nonprofit status, your organizationmust be formed to benefit:
    (1) The public;
    (2) A specific group of individuals; or
    (3) The membership of the nonprofit.
    StrikeForce means the ``USDA's StrikeForce Initiative for Rural 
Growth and Opportunity, which works to address the unique set of 
challenges faced by many of America's rural communities. Through 
StrikeForce, USDA is leveraging resources and collaborating with 
partners and stakeholders to improve economic opportunity and quality 
of life in these areas. See http://www.usda.gov/wps/portal/usda/usdahome?navid=STRIKE_FORCE for more information.
    Supplemental Nutrition Assistance Program (SNAP) means the 
supplemental nutrition assistance program established under the Food 
and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.).
    Value chain means adding value to a product, including production, 
marketing, and the provision of after-sales service and incorporating 
fair pricing to farms. It also involves keeping the final pricing to 
customers within competitive range. Value chain development, therefore, 
is a process of building relationships between supplier and buyer that 
are reciprocal and win-win; instead of always striving to buy at lowest 
cost.


Sec.  3430.1103  Eligibility.

    (a) In general. Eligibility to receive a grant under this subpart 
is limited to government agencies and nonprofit organizations. All 
applicants must demonstrate in their application that they are a 
government agency or nonprofit organization. Eligible government 
agencies and nonprofit organizations may include:
    (1) An emergency feeding organization;
    (2) An agricultural cooperative;
    (3) A producer network or association;
    (4) A community health organization;
    (5) A public benefit corporation;
    (6) An economic development corporation;
    (7) A farmers' market;
    (8) A community-supported agriculture program;
    (9) A buying club;
    (10) A SNAP-authorized retailer; and
    (11) A State, local, or tribal agency.
    (b) Further eligibility requirements--(1) Related to projects. To 
be eligible to receive a grant under this subpart, applicants must 
propose projects that:
    (i) Have the support of the State SNAP agency;
    (ii) Would increase the purchase of fruits and vegetables by low-
income consumers participating in SNAP by providing incentives at the 
point of purchase;
    (iii) Operate through authorized SNAP retailers and comply with all 
relevant SNAP regulations and operating requirements;
    (iv) Agree to participate in the FINI comprehensive program 
evaluation;
    (v) Ensure that the same terms and conditions apply to purchases 
made by individuals with SNAP benefits and with incentives under the 
FINI grants program as apply to purchases made by individuals who are 
not members of households receiving benefits as provided in Sec.  
278.2(b) of this title; and
    (vi) Include effective and efficient technologies for benefit 
redemption systems that may be replicated in other States and 
communities.
    (2) Related to experience and other competencies. To be eligible to 
receive a grant under this subpart, applicants must meet the following 
requirements:
    (i) Have experience:
    (A) In efforts to reduce food insecurity in the community, 
including food distribution, improving access to services, or 
coordinating services and programs; or
    (B) With the SNAP program;
    (ii) Demonstrate competency to implement a project, provide fiscal 
accountability, collect data, and prepare reports and other necessary 
documentation;
    (iii) Secure the commitment of the State SNAP agency to cooperate 
with the project; and
    (iv) Possess a demonstrated willingness to share information with

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researchers, evaluators (including the independent evaluator for the 
program), practitioners, and other interested parties, including a plan 
for dissemination of results to stakeholders.
    (c) Other, non-eligibility considerations. Applicants are 
encouraged:
    (1) To propose projects that will provide employees with important 
job skills; and
    (2) To have experience the following areas:
    (i) Community food work, particularly concerning small and medium-
size farms, including the provision of food to people in low-income 
communities and the development of new markets in low-income 
communities for agricultural producers; and
    (ii) Job training and business development activities for food-
related activities in low-income communities.
    (d) Partnerships. Applicants for a grant under this subpart are 
encouraged to seek and create partnerships with public or private, 
nonprofit or for-profit entities, including links with academic 
institutions (including minority-serving colleges and universities) or 
other appropriate professionals; community-based organizations; local 
government entities; PromiseZone lead applicant/organization or 
implementation partners; and StrikeForce area coordinators or 
partnering entities for the purposes of providing additional Federal 
resources and strengthening under-resourced communities. Only the 
applicant must meet the requirements specified in this section for 
grant eligibility. Project partners and collaborators need not meet the 
eligibility requirements.


Sec.  3430.1104  Project types and priorities.

    (a) FINI Pilot Projects (FPP). FPPs are aimed at new entrants 
seeking funding for a project in the early stages of incentive program 
development.
    (b) FINI Projects (FP). FPs are aimed at mid-sized groups 
developing incentive programs at the local or State level.
    (c) FINI Large Scale Projects (FLSP). FLSPs are aimed at groups 
developing multi-county, State, and regional incentive programs with 
the largest target audience of all FINI projects.


Sec.  3430.1105  Funding restrictions.

    (a) Construction. Funds made available for grants under this 
subpart shall not be used for the construction of a new building or 
facility or the acquisition, expansion, remodeling, or alteration of an 
existing building or facility (including site grading and improvement, 
and architect fees).
    (b) Indirect costs. Subject to Sec.  3430.54, indirect costs are 
allowable.


Sec.  3430.1106  Matching requirements.

    (a) In general. Recipients of a grant under this subpart must 
provide matching contributions on a dollar-for-dollar basis for all 
Federal funds awarded.
    (b) Source and type. The non-Federal share of the cost of a project 
funded by a grant under this subpart may be provided by a State or 
local government or a private source. The matching requirement in this 
section may be met through cash or in-kind contributions, including 
third-party in-kind contributions fairly evaluated, including 
facilities, equipment, or services.
    (c) Limitation. If an applicant partners with a for-profit entity, 
the non-Federal share that is required to be provided by the applicant 
may not include the services of an employee of that for-profit entity, 
including salaries paid or expenses covered by that employer.
    (d) Indirect costs. Use of indirect costs as in-kind matching 
contributions is subject to Sec.  3430.52(b).


Sec.  3430.1107  Program requirements.

    The term of a grant under this subpart may not exceed 5 years. No-
cost extensions of time beyond the maximum award terms will not be 
considered or granted.


Sec.  3430.1108  Priorities.

    (a) In general. Except as provided in paragraph (b) of this 
section, in awarding grants under this subpart, NIFA will give priority 
to projects that:
    (1) Maximize the share of funds used for direct incentives to 
participants;
    (2) Use direct-to-consumer sales marketing;
    (3) Demonstrate a track record of designing and implementing 
successful nutrition incentive programs that connect low-income 
consumers and agricultural producers;
    (4) Provide locally or regionally produced fruits and vegetables;
    (5) Are located in underserved communities; or
    (6) Address other criteria as established by NIFA and included in 
the requests for applications.
    (b) Exception. The priorities in paragraph (a) of this section that 
are given by NIFA will depend on the project type identified in Sec.  
3430.1104. Applicants should refer to the requests for applications to 
determine which priorities will be given to which project types.

    Done at Washington, DC, this 16th day of October, 2015.
Robert E. Holland,
Associate Director for Operations, National Institute of Food and 
Agriculture.
[FR Doc. 2015-26848 Filed 10-22-15; 8:45 am]
BILLING CODE 3410-22-P