The active ingredient is exempt if all of the following conditions are met:
(a) The genetic material that encodes the pesticidal substance or leads to the production of the pesticidal substance is from a plant that is sexually compatible with the recipient plant.
(b) The genetic material has never been derived from a source that is not sexually compatible with the recipient plant.
(c) The genetic material is transferred from the source plant to the recipient plant only through conventional breeding.
[66 FR 37814, July 19, 2001, as amended at 88 FR 34777, May 31, 2023]