PRIA, Government Policy, Made Personal

Summary

Programs started after August 8, 2005 must include cost-sharing when the Department runs research, development, demonstration, or commercial projects. For research and development, the non‑Federal side must pay at least 20% unless the work is basic research (decided by the Department), the project is applied research and the Secretary lowers or drops the share, or the work is done by a college or nonprofit during the 2‑year period starting August 9, 2022. For demonstration or commercial projects, non‑Federal contributors must pay at least 50%, but the Secretary can reduce that if needed, taking technological risk into account. Non‑Federal contributions can include cash, staff pay, the value of donated services or resources (counted under the OMB rules), indirect or facilities and administrative costs, and certain TVA power program funds (unless those funds come from an annual appropriation). They cannot include future revenues or royalties beyond the award period, money from selling a project asset, or other Federal appropriated funds. The Department may not require repayment of the Federal share. This cost‑sharing rule does not apply to cooperative research and development agreements under the Stevenson‑Wydler Act, fees to use a Department facility, or awards under the SBIR or STTR programs (15 U.S.C. 638).

Title 42, §16352

The Public Health and Welfare, Source: USLM XML via OLRC

(a)Applicability

Notwithstanding any other provision of law, in carrying out a research, development, demonstration, or commercial application program or activity that is initiated after August 8, 2005, the Secretary shall require cost-sharing in accordance with this section.

(b)Research and development

(1)In general

Except as provided in paragraphs (2), (3), and (4) and subsection (f), the Secretary shall require not less than 20 percent of the cost of a research or development activity described in subsection (a) to be provided by a non-Federal source.

(2)Exclusion

Paragraph (1) shall not apply to a research or development activity described in subsection (a) that is of a basic or fundamental nature, as determined by the appropriate officer of the Department.

(3)Reduction

The Secretary may reduce or eliminate the requirement of paragraph (1) for a research and development activity of an applied nature if the Secretary determines that the reduction is necessary and appropriate.

(4)Exemption for institutions of higher education and other nonprofit institutions

(A)In general

Paragraph (1) shall not apply to a research or development activity performed by an institution of higher education or nonprofit institution (as defined in section 4 of the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 3703)).

(B)Termination date

The exemption under subparagraph (A) shall apply during the 2-year period beginning on August 9, 2022.

(c)Demonstration and commercial application

(1)In general

Except as provided in paragraph (2) and subsection (f), the Secretary shall require that not less than 50 percent of the cost of a demonstration or commercial application activity described in subsection (a) to be provided by a non-Federal source.

(2)Reduction of non-Federal share

The Secretary may reduce the non-Federal share required under paragraph (1) if the Secretary determines the reduction to be necessary and appropriate, taking into consideration any technological risk relating to the activity.

(d)Calculation of amount

In calculating the amount of a non-Federal contribution under this section, the Secretary—

(1)may include allowable costs in accordance with the applicable cost principles, including—

(A)cash;

(B)personnel costs;

(C)the value of a service, other resource, or third party in-kind contribution determined in accordance with the applicable circular of the Office of Management and Budget;

(D)indirect costs or facilities and administrative costs; or

(E)any funds received under the power program of the Tennessee Valley Authority (except to the extent that such funds are made available under an annual appropriation Act); and

(2)shall not include—

(A)revenues or royalties from the prospective operation of an activity beyond the time considered in the award;

(B)proceeds from the prospective sale of an asset of an activity; or

(C)other appropriated Federal funds.

(e)Repayment of Federal share

The Secretary shall not require repayment of the Federal share of a cost-shared activity under this section as a condition of making an award.

(f)Exclusions

This section shall not apply to—

(1)a cooperative research and development agreement under the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 3701 et seq.);

(2)a fee charged for the use of a Department facility; or

(3)an award under—

(A)the small business innovation research program under section 638 of title 15; or

(B)the small business technology transfer program under that section.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Stevenson-Wydler Technology Innovation Act of 1980, referred to in subsec. (f)(1), is Pub. L. 96–480, Oct. 21, 1980, 94 Stat. 2311, which is classified generally to chapter 63 (§ 3701 et seq.) of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see

Short Title

note set out under section 3701 of Title 15 and Tables.

Amendments

2022—Subsec. (b)(4)(B). Pub. L. 117–167 substituted “

August 9, 2022” for “

September 28, 2018”. 2018—Subsec. (b)(1). Pub. L. 115–246, § 108(a)(1), substituted “Except as provided in paragraphs (2), (3), and (4)” for “Except as provided in paragraphs (2) and (3)”. Subsec. (b)(4). Pub. L. 115–246, § 108(a)(2), added par. (4).

§16352 Cost Sharing