§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, §1660, Nov. 28, 1990, 104 Stat. 3761 ; Pub. L. 104–127, title VII, §724, Apr. 4, 1996, 110 Stat. 1119 .)

Amendments

1996-Subsecs. (a), (b). Pub. L. 104–127, §724(1), substituted "Corporation" for "Center".

Subsec. (c). Pub. L. 104–127, §724(2), substituted "Corporate Board" for "Board" in introductory provisions.

Subsec. (e). Pub. L. 104–127, §724(1), substituted "Corporation" for "Center".

Subsec. (f). Pub. L. 104–127, §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.