Special Research Grants Program

SUMMARY: This rule amends the Special Research Grants Program

Administrative Regulations to replace references to section 2 of the

Act of August 4, 1965, with references to the Competitive, Special, and

Facilities Research Grant Act (CSFRGA), to apply to competitive and

noncompetitive grants, to include extension and educational activities

under the regulation, to shorten the maximum potential grant award

period, to require grantees to arrange for scientific peer review of

their proposed research activities and merit review of their proposed

extension and education activities prior to award, in accordance with

subsection (c)(5) of CSFRGA, as amended by section 212 of the

Agricultural Research, Extension, and Education Reform Act of 1998 (7

U.S.C. 450i(c)(5)), and to require an annual report of the results of

the research, extension, or education activity and the merit of the

results.

EFFECTIVE DATE: June 24, 1999.

FOR FURTHER INFORMATION CONTACT: Dr. Sally Rockey, Deputy

Administrator, Competitive Research Grants and Awards Management, USDA

Cooperative State Research, Education, and Extension Service, Mail Stop

2240, 1400 Independence Avenue, SW, Washington, DC 20250-2240;

telephone, (202) 401-1761; e-mail, [email protected].

SUPPLEMENTARY INFORMATION: The Cooperative State Research, Education,

and Extension Service (CSREES) published a Notice of Proposed

Rulemaking (NPRM) to amend the administrative provisions to the Special

Research Grants Program in the Federal Register on March 24, 1999 (64

FR 14348).

Background and Purpose

Under the authority of subsections (c)(1)(A) and (B) of the

Competitive, Special, and Facilities Research Grants Act, as amended (7

U.S.C. 450i), the Secretary of Agriculture is authorized to make

special grants for the conduct of research, extension or education

activities to facilitate or expand promising breakthroughs in areas of

food and agricultural sciences; promote excellence in research,

extension or education on a regional and national level; promote the

development of regional research centers; promote the research

partnership between the Department of Agriculture, colleges and

universities, research foundations, and State agricultural experiment

stations for regional research efforts; and facilitate coordination and

cooperation of research, extension, or education among States through

regional grants.

On June 23, 1998, President Clinton signed into law the

Agricultural Research, Extension, and Education Reform Act of 1998

(AREERA) (Pub. L. No. 105-185). The Competitive, Special, and

Facilities Research Grants Act, CSFRGA (formerly section 2 of the Act

of August 4, 1965, Pub. L. No. 89-106, as retitled by Section 401(a) of

the Food, Agriculture, Conservation, and Trade Act Amendments of 1991

(FACT Act Amendments), Pub. L. No. 102-237), as amended by section

212(2) of AREERA, states in subsection (c)(5) that the Secretary shall

make a grant under this authority for a research activity only if the

activity has undergone scientific peer review arranged by the grantee

in accordance with regulations promulgated by the Secretary. Likewise,

subsection (c)(5) of CSFRGA, as amended by section 212(2) of AREERA,

states that the Secretary shall make a grant under this authority for

an extension or education activity only if the activity has undergone

merit review arranged by the grantee in accordance with regulations

promulgated by the Secretary.

This rule revises section 3400.1 to expand the scope of the current

regulations to apply to all subsection (c) awards, including both

competitive and noncompetitive awards made under this authority. The

rule also revises these regulations to address extension and education

activities in addition to research activities.

Subpart C of the rule specifies the basic parameters for scientific

peer and merit review, and not detailed procedures, to provide

applicants with maximum flexibility in determining the timing and use

of resources. Applicants are free to change peer or merit review

protocols as deemed appropriate, as long as the peer or merit review

continues to meet the requirements of this rule. CSREES, however, has

reserved the right under this rule to specify the timing of submission

of the notice of completion of review.

Section 3400.20 requires that applicants provide notice acting as

certification prior to an award by CSREES that the review has been

completed. Having applicants submit only a notice of compliance, and

not the actual review documentation or results, aims to minimize the

administrative burden on the applicants. The regulations, however, do

require that the applicant retain the review documentation and,

consistent with agency assistance regulations, such documentation may

be subject to agency inspection.

Subpart D of the rule requires that recipients submit annual

reports describing the results of the research, extension, or education

activity. The agency currently requires that recipients submit annual

and final performance reports as a term and condition of each award.

The agency believes that this meets the reporting requirements added by

section 212 of AREERA.

This rule also makes technical amendments to Part 3400 to change

references to the Act of August 4, 1965, to the Competitive, Special,

and Facilities Research Grant Act as retitled by Section 401(a) of the

FACT Act Amendments. The rule also changes the maximum potential award

period for Special Grants from five (5) years to three (3) years to

conform with the amendments in section 212 of AREERA.

Public Comments and Statutory Changes

In the NPRM, CSREES invited comments on the proposed regulations

for consideration in the formulation of a final rule. Three commenters

responded.

One commenter supported efforts aimed at ensuring accountability

and the best possible return on research investments. The commenter

also encouraged the development of appropriate review mechanisms for

all U.S. agricultural research efforts. CSREES believes the rule

establishes the necessary accountability requirements to ensure that

the proposed work is reviewed for technical quality and relevance while

still allowing applicants latitude and flexibility in determining who

performs the review.

One commenter questioned the necessity of implementing many of the

requirements being imposed under the regulation, i.e., the inclusion of

extension and educational activities under the rule; the shortening of

the maximum grant period from five to three years; the requirement to

have grantees arrange for scientific peer review of proposed research

activities and merit review of proposed extension and educational

activities; and the necessity to submit an annual report within 30 days

of the project's

[[Page 34103]]

anniversary date. The regulation promulgates the legislatively mandated

requirements added by the Agricultural Research, Extension, and

Education Reform Act of 1998 (AREERA); therefore the imposed

requirements are mandatory. Although the program authority now requires

recipients to submit annual reports, the timing and nature of the

reports are not legislatively specified, consequently the requirement

in the final rule has been changed to be consistent with current agency

policy as set forth in the terms and conditions of the grant.

One commenter requested that the requirement for peer or merit

review not apply to competitive special grant programs since such a

review would duplicate efforts at the agency level. The statute makes

no provision distinguishing competitive and non-competitive grants;

therefore the agency has no discretion. However, if the institution

believes that their established organizational review process meets the

CSREES definition of peer review, then the institution may certify that

requirements for peer review have been met. The commenter suggested

that in lieu of requiring a separate notice of completion of review,

the regulation be changed so that approval by an applicant's authorized

organizational representative constitutes notice of completion of

institutional review. CSREES believes that at this point in time it

should retain the ability to designate when the notice of completion

should be submitted. However, the suggestion has merit, and CSREES

intends to facilitate the submission of the notice of completion

process by incorporating procedures into program requests for

proposals. Finally, the commenter suggested that the proposed rule at

Sec. 3400.20 be revised to allow recipients to delegate to the agency

the conduct of peer review. The legislation requires that recipients

arrange for the performance of a distinct and separate review;

consequently, CSREES cannot assume that responsibility on behalf of the

applicants.

Classification

Executive Order No. 12866

This rule has been reviewed under Executive Order No. 12866, and it

has been determined that it is not a ``significant regulatory action''

rule because it will not have an annual effect on the economy of $100

million or more or adversely and materially affect a sector of the

economy, productivity, competition, jobs, the environment, public

health or safety, or State, local, or tribal governments or

communities. This rule will not create any serious inconsistencies or

otherwise interfere with any actions taken or planned by another

agency. It will not materially alter the budgetary impact of

entitlements, grants, user fees or loan programs and does not raise

novel legal or policy issues arising out of legal mandates, the

President's priorities, or principles set forth in Executive Order No.

12866. In addition, the Department certifies that the rule will not

have a significant impact on a substantial number of small entities as

defined in the Regulatory Flexibility Act, Pub. L. No. 96-354 (5 U.S.C.

601-612).

Executive Order No. 12988

This rule has been reviewed under Executive Order No. 12988, Civil

Justice Reform. No retroactive effect is to be given to this rule. This

rule does not require administrative proceedings before parties may

file suit in court.

National Environmental Policy Act

This rule does not significantly affect the environment. Therefore,

an environmental impact statement is not required under the National

Environmental Policy Act of 1969, as amended (42 U.S.C. 4321 et seq.).

Paperwork Reduction Act

Under the provisions of the Paperwork Reduction Act of 1995, as

amended, 44 U.S.C. chapter 35, and Office of Management and Budget

(OMB) regulations at 5 CFR Part 1320, the collection of information

requirements for research activities contained in this rule have been

approved under OMB Document Nos. 0524-0022 and 0524-0033. When

appropriations are made available for extension and education

activities under this program, CSREES will fully comply with the

Paperwork Reduction Act and submit a revision to the collection of

information requirements to include these activities. Comments from

potential applicants on the collection of information may be submitted

to CSREES-USDA; Office of Extramural Programs; Policy and Program

Liaison Staff; Mail Stop 2299; 1400 Independence Avenue, S.W.;

Washington, D.C. 20250-2299 by June 23, 1999, or to the Desk Officer

for Agriculture, Office of Information and Regulatory Affairs, Office

of Management and Budget, Washington, D.C. 20502. Reference should be

made to the volume, page, and date of this Federal Register

publication.

Catalog of Federal Domestic Assistance

This program is listed in the Catalog of Federal Domestic

Assistance under No. 10.200. For reasons set forth in the Final Rule-

related Notice to 7 CFR Part 3015, Subpart V (48 FR 29115, June 24,

1983), this program is excluded from the scope of Executive Order

12372, which requires intergovernmental consultation with State and

local officials.

List of Subjects in 7 CFR Part 3400

Grants programs--agriculture, Grants administration.

For the reasons set forth above, Part 3400 of Chapter XXXIV of

Title 7 of the Code of Federal Regulations is amended as follows:

PART 3400--SPECIAL RESEARCH GRANTS PROGRAM

1. The authority citation for part 3400 is revised to read as

follows:

Authority: 7 U.S.C. 450i(c);

2. Revise Sec. 3400.1 to read as follows:

Sec. 3400.1 Applicability of regulations.

(a) The regulations of this part apply to special research grants

awarded under the authority of subsection (c) of the Competitive,

Special, and Facilities Research Grant Act, as amended (7 U.S.C. 450i

(c)), to facilitate or expand promising breakthroughs in areas of the

food and agricultural sciences of importance to the United States.

Subparts A and B, excepting this section, apply only to special

research grants awarded under subsection (c)(1)(A). Subpart C, Peer and

Merit Review Arranged by Grantees, and Subpart D, Annual Reports, apply

to all grants awarded under subsection (c).

(b) Each year the Administrator of CSREES shall determine and

announce through publication of a Notice in such publications as the

Federal Register, professional trade journals, agency or program

handbooks, the Catalog of Federal Domestic Assistance, or any other

appropriate means, research program areas for which proposals will be

solicited competitively, to the extent that funds are available.

(c) The regulations of this part do not apply to research,

extension or education grants awarded by the Department of Agriculture

under any other authority.

3. Revise Sec. 3400.7(c) to read as follows:

Sec. 3400. Use of funds; changes.

* * * * *

(c) Changes in project period. The project period determined

pursuant to Sec. 3400.5(b) may be extended by the

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Administrator without additional financial support for such additional

period(s) as the Administrator determines may be necessary to complete

or fulfill the purposes of an approved project. Any extension, when

combined with the originally approved or amended project period shall

not exceed three (3) years (the limitation established by statute) and

shall be further conditioned upon prior request by the grantee and

approval in writing by the Department, unless prescribed otherwise in

the terms and conditions of a grant award.

* * * * *

4. Subpart C of Part 3400 is added to read as follows:

Subpart C--Peer and Merit Review Arranged by Grantees

3400.20 Grantee review prior to award.

3400.21 Scientific peer review for research activities.

3400.22 Merit review for education and extension activities.

Subpart C--Peer and Merit Review Arranged by Grantees

Sec. 3400.20 Grantee review prior to award.

(a) Review requirement. Prior to the award of a standard or

continuation grant by CSREES, any proposed project shall have undergone

a review arranged by the grantee as specified in this subpart. For

research projects, such review must be a scientific peer review

conducted in accordance with Sec. 3400.21. For education and extension

projects, such review must be a merit review conducted in accordance

with Sec. 3400.22.

(b) Credible and independent. Review arranged by the grantee must

provide for a credible and independent assessment of the proposed

project. A credible review is one that provides an appraisal of

technical quality and relevance sufficient for an organizational

representative to make an informed judgment as to whether the proposal

is appropriate for submission for Federal support. To provide for an

independent review, such review may include USDA employees, but should

not be conducted solely by USDA employees.

(c) Notice of completion and retention of records. A notice of

completion of review shall be conveyed in writing to CSREES either as

part of the submitted proposal or prior to the issuance of an award, at

the option of CSREES. The written notice constitutes certification by

the applicant that a review in compliance with these regulations has

occurred. Applicants are not required to submit results of the review

to CSREES; however, proper documentation of the review process and

results should be retained by the applicant.

(d) Renewal and supplemental grants. Review by the grantee is not

automatically required for renewal or supplemental grants as defined in

Sec. 3400.6. A subsequent grant award will require a new review if,

according to CSREES, either the funded project has changed

significantly, other scientific discoveries have affected the project,

or the need for the project has changed. Note that a new review is

necessary when applying for another standard or continuation grant

after expiration of the grant term.

Sec. 3400.21 Scientific peer review for research activities.

Scientific peer review is an evaluation of a proposed project for

technical quality and relevance to regional or national goals performed

by experts with the scientific knowledge and technical skills to

conduct the proposed research work. Peer reviewers may be selected from

an applicant organization or from outside the organization, but shall

not include principals, collaborators or others involved in the

preparation of the application under review.

Sec. 3400.22 Merit review for education and extension activities.

Merit review is an evaluation of a proposed project or elements of

a proposed program whereby the technical quality and relevance to

regional or national goals are assessed. The merit review shall be

performed by peers and other individuals with expertise appropriate to

evaluate the proposed project. Merit reviewers may not include

principals, collaborators or others involved in the preparation of the

application under review.

5. Subpart D of Part 3400 is added to read as follows:

Subpart D--Annual Reports

Sec. 3400.23 Annual reports.

(a) Reporting requirement. The recipient shall submit an annual

report describing the results of the research, extension, or education

activity and the merit of the results.

(b) Report type and content. Unless otherwise stipulated, grant

recipients will have met the reporting requirement under this subpart

by complying with the reporting requirements as set forth in the terms

and conditions of the grant at the time of award.

Done at Washington, D.C., on this 3rd day of June, 1999.

Colien Hefferan,

Acting Administrator, Cooperative State Research, Education, and

Extension Service.

[FR Doc. 99-16016 Filed 6-23-99; 8:45 am]

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