(a) Capacity and infrastructure program

(1) In general

In each State with one or more accredited colleges of veterinary medicine, the deans of the accredited college or colleges and the director of the State agricultural experiment station shall develop a comprehensive animal health and disease research program for the State based on the animal health research capacity of each eligible institution in the State, which shall be submitted to the Secretary for approval and shall be used for the allocation of funds available to the State under this section.

(2) Use of funds

An eligible institution allocated funds to carry out animal health and disease research under this section may only use such funds—

(A) to meet the expenses of conducting animal health and disease research, publishing and disseminating the results of such research, and contributing to the retirement of employees subject to section 331 of this title;

(B) for administrative planning and direction; and

(C) to purchase equipment and supplies necessary for conducting research described in subparagraph (A).

(3) Cooperation among eligible institutions

The Secretary, to the maximum extent practicable, shall encourage eligible institutions to cooperate in setting research priorities under this section through conducting regular regional and national meetings.

(b) Competitive grant program

(1) In general

The Secretary, for purposes of addressing the critical needs of animal agriculture, shall award competitive grants to eligible entities under which such eligible entities—

(A) conduct research—

(i) to promote food security, such as by—

(I) improving feed efficiency;

(II) improving energetic efficiency;

(III) connecting genomics, proteomics, metabolomics and related phenomena to animal production;

(IV) improving reproductive efficiency; and

(V) enhancing pre- and post-harvest food safety systems; and

(ii) on the relationship between animal and human health, such as by—

(I) exploring new approaches for vaccine development;

(II) understanding and controlling zoonosis, including its impact on food safety;

(III) improving animal health through feed; and

(IV) enhancing product quality and nutritive value; and

(B) develop and disseminate to the public tools and information based on the research conducted under subparagraph (A) and sound science.

(2) Eligible entities

An entity eligible to receive a grant under this subsection is any of the following:

(A) A State cooperative institution.

(B) An NLGCA Institution.

(3) Administration

In carrying out this subsection, the Secretary shall establish procedures—

(A) to seek and accept proposals for grants;

(B) to review and determine the relevance and merit of proposals, in consultation with representatives of the animal agriculture industry;

(C) to provide a scientific peer review of each proposal conducted by a panel of subject matter experts from Federal agencies, academic institutions, State animal health agencies, and the animal agriculture industry; and

(D) to award competitive grants on the basis of merit, quality, and relevance.

(c) Funding

(1) Authorization of appropriations

There are authorized to be appropriated to carry out this section $25,000,000 for each of fiscal years 2014 through 2023.

(2) Reservation of funds

The Secretary shall reserve not less than $5,000,000 of the funds made available under paragraph (1) to carry out the capacity and infrastructure program under subsection (a).

(3) Initial apportionment

The amounts made available under paragraph (1) that are remaining after the reservation of funds under paragraph (2), shall be apportioned as follows:

(A) 15 percent of such amounts shall be used to carry out the capacity and infrastructure program under subsection (a).

(B) 85 percent of such funds shall be used to carry out the competitive grant program under subsection (b).

(4) Additional apportionment

The funds reserved under paragraph (2) and apportioned under paragraph (3)(A) to carry out the capacity and infrastructure program under subsection (a) shall be apportioned as follows:

(A) Four percent shall be retained by the Department of Agriculture for administration, program assistance to the eligible institutions, and program coordination.

(B) 48 percent shall be distributed among the several States in the proportion that the value of and income to producers from domestic livestock, poultry, and commercial aquaculture species in each State bears to the total value of and income to producers from domestic livestock, poultry, and commercial aquaculture species in all the States. The Secretary shall determine the total value of and income from domestic livestock, poultry, and commercial aquaculture species in all the States and the proportionate value of and income from domestic livestock, poultry, and commercial aquaculture species for each State, based on the most current inventory of all cattle, sheep, swine, horses, poultry, and commercial aquaculture species published by the Department of Agriculture.

(C) 48 percent shall be distributed among the several States in the proportion that the animal health research capacity of the eligible institutions in each State bears to the total animal health research capacity in all the States. The Secretary shall determine the animal health research capacity of the eligible institutions.

(5) Special rules for apportionment of certain funds

With respect to funds reserved under paragraph (2) and apportioned under paragraph (3)(A) to carry out the capacity and infrastructure program under subsection (a), the following shall apply:

(A) When the amount available under this section for allotment to any State on the basis of domestic livestock, poultry, and commercial aquaculture species values and incomes exceeds the amount for which the eligible institution or institutions in the State are eligible on the basis of animal health research capacity, the excess may be used, at the discretion of the Secretary, for remodeling of facilities, construction of new facilities, or increase in staffing, proportionate to the need for added research capacity.

(B) Whenever a new college of veterinary medicine is established in a State and is accredited, the Secretary, after consultation with the dean of such college and the director of the State agricultural experiment station and where applicable, deans of other accredited colleges in the State, shall provide for the reallocation of funds available to the State pursuant to paragraph (4) between the new college and other eligible institutions in the State, based on the animal health research capacity of each eligible institution.

(C) Whenever two or more States jointly establish an accredited regional college of veterinary medicine or jointly support an accredited college of veterinary medicine serving the States involved, the Secretary is authorized to make funds which are available to such States pursuant to paragraph (4) available for such college in such amount that reflects the combined relative value of, and income from, domestic livestock, poultry, and commercial aquaculture species in the cooperating States, such amount to be adjusted, as necessary, pursuant to subsection (a)(1) and subparagraph (B).