
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 7USC5904]

 
                          TITLE 7--AGRICULTURE
 
                          CHAPTER 88--RESEARCH
 
 SUBCHAPTER VI--ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION
 
Sec. 5904. Research and development grants, contracts, and 
        agreements
        

(a) Eligibility

    All public and private educational institutions, other public and 
private research institutions and organizations, Federal agencies, and 
individuals shall be eligible to receive a grant from, or enter into a 
contract or cooperative agreement with, the Corporation for a research, 
development, or demonstration project, as provided in this section.

(b) Competitive basis for awards

    Grants made, and contracts and cooperative agreements entered into, 
under this section shall be selected on a competitive basis on the 
recommendation of a peer review system to be established by the 
Corporation. Such system shall contain peer review expertise in 
commercial production, product development, processing, and marketing of 
agricultural commodities as well as in scientific research.

(c) Selection criteria

    The Corporate Board may select a research, development, or 
demonstration project to receive a grant, contract, or cooperative 
agreement under this section based on the likelihood that the project 
will result in creating or improving economically viable commercial 
nonfood, nonfeed products, applications, processes, or technologies that 
involve the use of raw or processed agricultural commodities. The 
criteria to be considered may include the following:
        (1) the prospect of developing technologies that could make it 
    possible to use or modify existing agricultural commodities to 
    provide an economically viable quantity of new nonfood, nonfeed 
    products;
        (2) the potential market size of the new nonfood, nonfeed 
    product, the likely time period needed to bring the product into the 
    stream of commerce for general use, and the likely availability of 
    the agricultural commodity used to produce the product;
        (3) the potential for job creation in an economically distressed 
    rural area;
        (4) the anticipated State or local participation;
        (5) the anticipated financial participation of private entities;
        (6) the likely impact on reducing Federal crop subsidies and 
    other Federal agricultural assistance program costs;
        (7) the unavailability of adequate funding from other sources;
        (8) the likely positive impact on resource conservation and the 
    environment; and
        (9) the likely positive effect of helping family-sized farmers 
    and rural communities near the affected agricultural and forested 
    areas.

(d) Set-aside of funds for certain projects

                           (1) In general

        Not less than two-thirds of the funds obligated each fiscal year 
    for grants, contracts, and cooperative agreements under this section 
    shall be awarded only for research, development, and demonstration 
    projects for which the applicant--
            (A) has committed substantial funding and support from its 
        own resources; and
            (B) has entered into a cooperative agreement or other 
        contractual arrangement with a commercial company domiciled in 
        the United States that commits such company to--
                (i) provide funds for at least 20 percent of the total 
            cost of such project; and
                (ii) engage in commercial production and sale of the 
            marketable products, processes, uses, applications, or 
            technologies developed through the project, under 
            appropriate licensing, royalty, or other agreements.

                         (2) Animal sources

        Not more than 25 percent of the funds obligated each fiscal year 
    for grants, contracts, and cooperative agreements under this section 
    shall be awarded only for projects concerning new nonfood, nonfeed 
    products derived from animal sources.

(e) Limitation on funds provided

    Funds committed by the Corporation for any project under a grant, 
contract, or cooperative agreement under this section shall in no case 
exceed two-thirds of the total cost of the project.

(f) Preference

    In selecting projects to receive funds, the Corporation may give 
preference to those projects for which the ratio of Corporation funds to 
non-Corporation funds would be lowest.

(Pub. L. 101-624, title XVI, Sec. 1660, Nov. 28, 1990, 104 Stat. 3761; 
Pub. L. 104-127, title VII, Sec. 724, Apr. 4, 1996, 110 Stat. 1119.)


                               Amendments

    1996--Subsecs. (a), (b). Pub. L. 104-127, Sec. 724(1), substituted 
``Corporation'' for ``Center''.
    Subsec. (c). Pub. L. 104-127, Sec. 724(2), substituted ``Corporate 
Board'' for ``Board'' in introductory provisions.
    Subsec. (e). Pub. L. 104-127, Sec. 724(1), substituted 
``Corporation'' for ``Center''.
    Subsec. (f). Pub. L. 104-127, Sec. 724(1), (3), substituted 
``Corporation'' for ``Center'' in two places and substituted ``non-
Corporation'' for ``non-Center''.

                  Section Referred to in Other Sections

    This section is referred to in sections 5902, 5903, 5905, 5906, 
5908, 5909 of this title.
