110 STAT. 1154 PUBLIC LAW 104-127—APR. 4, 1996 (vii) increase economic opportunities in farming and rural communities; and (viii) expand locally-owned value-added processing. (B) ELIGIBLE GRANTEE.— The Secretary may make a grant under this paragraph to— (i) a Federal research agency; (ii) a national laboratory; (iii) a college or university or a research foundation maintained by a college or university; or (iv) a private research organization with an established and demonstrated capacity to perform research or technology transfer. (C) USE OF GRANT. — (i) IN GENERAL.—^A grant made under this paragraph may be used by a grantee for 1 or more of the following uses: (I) Outcome-oriented research at the discovery end of the spectrum to provide breakthrough results. (II) Exploratory and advanced development and technology with well-identified outcomes. (III) A national, regional, or multi-State program oriented primarily toward extension programs and education programs demonstrating and supporting the competitiveness of United States agriculture. (ii) SMALLER INSTITUTIONS.— Of the amounts made available for activities described in this paragraph, not less than 15 percent shall be awarded to colleges, universities, or research foundations eligible for a grant under subparagraph (B)(iii) that rank in the lowest Vs of such colleges, universities, and foundations on the basis of Federal research funds received under a provision of law other than this section. (D) ADMINISTRATION.— (i) PRIORITY. —In administering this paragraph, the Secretary shall— (I) establish criteria for allocating grants based on the priorities in subparagraph (A) and in consultation with the National Agricultural Research, Extension, Education, and Economics Advisory Board established under section 1408 of the National Agricultural Research, Extension, and Teaching PoHcy Act of 1977 (7 U.S.C. 3123); (II) seek and accept proposals for grants; (III) determine the relevance and merit of proposals through a system of peer review and review by the National Agricultural Research, Extension, Education, and Economics Advisory Board; and (IV) award grants on the basis of merit, quality, and relevance to advancing the purposes of federally supported agricultural research, extension, and education provided in section 1402 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3101).
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