Notice2023-04222
Notice of Funding Opportunity (NOFO) for Section 313A Guarantees for Bonds and Notes Issued for Utility Infrastructure Purposes for Fiscal Year (FY) 2023
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Published
March 2, 2023
Issuing agencies
Agriculture DepartmentRural Utilities Service
Abstract
The Rural Utilities Service (RUS or the Agency), a Rural Development agency of the United States Department of Agriculture (USDA), announces the acceptance of applications under the Guarantees for Bonds and Notes Issued for Utility Infrastructure Purposes Program (the 313A Program) for Fiscal Year (FY) 2023. This notice is being issued in order to allow applicants sufficient time to prepare and submit their applications and give the Agency time to process applications within FY 2023. Based on FY 2023 appropriated funding, the Agency announces that $900 million will be available for FY 2023. The purpose of the 313A Program is to guarantee loans to selected applicants as a Guaranteed Lender. Successful applications will be selected by the Agency for funding and subsequently awarded to the extent that funding may ultimately be made available through apportionment. All applicants are responsible for any expenses incurred in developing their applications.
Full Text
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<title>Federal Register, Volume 88 Issue 41 (Thursday, March 2, 2023)</title>
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<body><pre>[Federal Register Volume 88, Number 41 (Thursday, March 2, 2023)]
[Notices]
[Pages 13082-13085]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-04222]
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DEPARTMENT OF AGRICULTURE
Rural Utilities Service
[Docket #: RUS-22-ELECTRIC-0059]
Notice of Funding Opportunity (NOFO) for Section 313A Guarantees
for Bonds and Notes Issued for Utility Infrastructure Purposes for
Fiscal Year (FY) 2023
AGENCY: Rural Utilities Service, USDA.
ACTION: Notice of Funding Opportunity (NOFO).
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SUMMARY: The Rural Utilities Service (RUS or the Agency), a Rural
Development agency of the United States Department of Agriculture
(USDA), announces the acceptance of applications under the Guarantees
for Bonds and Notes Issued for Utility Infrastructure Purposes Program
(the 313A Program) for Fiscal Year (FY) 2023. This notice is being
issued in order to allow applicants sufficient time to prepare and
submit their applications and give the Agency time to process
applications within FY 2023. Based on FY 2023 appropriated funding, the
Agency announces that $900 million will be available for FY 2023. The
purpose of the 313A Program is to guarantee loans to selected
applicants as a Guaranteed Lender. Successful applications will be
selected by the Agency for funding and subsequently awarded to the
extent that funding may ultimately be made available through
apportionment. All applicants are responsible for any expenses incurred
in developing their applications.
DATES: Completed applications must be electronically received by RUS no
later than 5:00 p.m. Eastern Time (ET) May 1, 2023. Applicants
intending to submit applications must have their applications received
by the closing deadline.
ADDRESSES: Completed applications must be submitted electronically to
Amy McWilliams, Program Advisor, Electric Program, RUS at
<a href="/cdn-cgi/l/email-protection#5435392d7a3937233d38383d35392714212730357a333b22"><span class="__cf_email__" data-cfemail="1574786c3b7876627c79797c74786655606671743b727a63">[email protected]</span></a>.
FOR FURTHER INFORMATION CONTACT: Amy McWilliams, Program Advisor, Rural
Utilities Service, USDA, 1400 Independence Avenue SW, Mail Stop 1560,
Room 4121-South, Washington, DC 20250-1560, by email at
<a href="/cdn-cgi/l/email-protection#bfded2c691d2dcc8d6d3d3d6ded2ccffcaccdbde91d8d0c9"><span class="__cf_email__" data-cfemail="e1808c98cf8c8296888d8d88808c92a194928580cf868e97">[email protected]</span></a>, or call (202) 205-8663. Persons with
disabilities that require alternative means for communication should
contact the U.S. Department of Agriculture (USDA) Target Center at
(202) 720-2600 (voice).
SUPPLEMENTARY INFORMATION:
[[Page 13083]]
Overview
Federal Awarding Agency Name: Rural Utilities Service.
Funding Opportunity Title: Guarantees for Bonds and Notes Issued
for Utility Infrastructure Purposes for Fiscal Year (FY) 2023.
Announcement Type: Notice of Funding Opportunity.
Assistance Listing: 10.850.
Dates: Completed applications must be received by RUS no later than
5:00 p.m. Eastern Time (ET) May 1, 2023.
Rural Development Key Priorities: The Agency encourages applicants
to consider projects that will advance the following key priorities:
<bullet> Assisting rural communities to recover economically
through more and better market opportunities and through improved
infrastructure;
<bullet> Ensuring all rural residents have equitable access to
Rural Development (RD) programs and benefits from RD funded projects;
and
<bullet> Reducing climate pollution and increasing resilience to
the impacts of climate change through economic support to rural
communities.
A. Program Description
1. Purpose of the Program. The purpose of the 313A Program is to
guarantee loans to selected applicants (each referred to as the
``Guaranteed Lender'' in this NOFO). The proceeds of the guaranteed
loans are to be used (a) to make utility infrastructure loans or (b) to
refinance bonds or notes issued for such purposes to a borrower that
has at any time received, or is eligible to receive, a loan under the
Rural Electrification Act of 1936, as amended (RE Act). Each applicant
must provide a statement on how it proposes to use the proceeds of the
guaranteed bonds, and the financial benefit it anticipates deriving
from participating in the program pursuant to 7 CFR 1720.6(a)(3), or
its equivalent in any subsequent regulation. Objectives may include,
but are not limited to the annual savings to be realized by the
ultimate borrower(s) as a result of the applicant's use of lower cost
loan funds provided by the Federal Financing Bank (FFB) and guaranteed
by RUS.
The Agriculture Improvement Act of 2018 (2018 Farm Bill) modified
the 313A Program by amending the RE Act to allow proceeds of guaranteed
bonds awarded under this NOFO to be used to make broadband loans, or to
refinance broadband loans made to a borrower that has received, or is
eligible to receive, a broadband loan under title VI of the RE Act.
The 2018 Farm Bill has also modified the 313A Program to allow the
proceeds of guaranteed loans made under this NOFO to be used by the
Guaranteed Lender to fund projects for the generation of electricity.
2. Statutory and Regulatory Authority. The 313A Program is
authorized by section 313A of the Rural Electrification Act of 1936, as
amended (7 U.S.C. 940c-1), and is implemented by regulations located at
7 CFR part 1720. The Administrator of RUS (the Administrator) has been
delegated responsibility for administering the 313A Program.
3. Definitions. The definitions applicable to this NOFO are
currently published at 7 CFR 1720.3.
4. Application of Awards. RUS will review and evaluate applications
received in response to this NOFO based on the regulations at 7 CFR
1720.7, and as provided in this NOFO.
B. Federal Award Information
Type of Awards: Guaranteed Loans.
Fiscal Year Funds: FY 2023.
Available Funds: $900,000,000. Should additional funding become
available this fiscal year, RUS reserves the right to increase the
total funds available under this notice.
Award Amounts: RUS anticipates making multiple guarantees under
this NOFO. The number, amount, and terms of awards under this NOFO will
depend in part on the number of eligible applications and the amount of
funds requested. In determining whether to make an award, RUS will take
overall program policy objectives into account.
Anticipated Award Date: Awards will be made on or before September
29, 2023, but no earlier than May 1, 2023.
Performance Period: The RE Act provides that loans guaranteed under
this program cannot exceed 30 years in length.
Renewal or Supplemental Awards: N/A.
Type of Assistance Instrument: The type of assistance is in the
form of an RUS FFB Guaranteed Loan and is supported by a perfected lien
on collateral sufficient to provide for full loan security.
C. Eligibility Information
1. Eligible Applicants. To be eligible to participate in the 313A
Program or receive a guarantee, a Guaranteed Lender must meet the
eligibility criteria specified in 7 CFR 1720.5.
2. Cost Sharing or Matching. There is no requirement for cost
sharing or matching; however, borrowers must provide sufficient
unencumbered collateral to secure loan guarantees made under this
program.
3. Other. Applications will only be accepted from lenders that
serve rural areas as defined in 7 CFR 1710.2(a). For initial loans to a
borrower made after June 18, 2008, the ``rural'' character of an area
is determined at the time of the initial loan to furnish or improve
service in the area.
D. Application and Submission Information
1. Address to Request Application Package.
All applications must be prepared and submitted in accordance with
this NOFO and
7 CFR part 1720 (<a href="https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XVII/part-1720">https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XVII/part-1720</a>).
2. Content and Form of Application Submission.
In addition to the required application specified in 7 CFR 1720.6,
all applicants must submit the following additional required documents
and materials:
a. Restrictions on Lobbying:
Applicants must comply with the requirements relating to
restrictions on lobbying activities. (See 2 CFR part 418.) This form is
available at <a href="https://www.gsa.gov/forms-library/disclosure-lobbying-activities">https://www.gsa.gov/forms-library/disclosure-lobbying-activities</a>.
b. Uniform Relocation Act assurance statement:
Applicants must comply with 49 CFR part 24, which implements the
Uniform Relocation Assistance and Real Property Acquisition Policies
Act of 1970, as amended. (See 7 CFR 1710.124.) This form is available
at <a href="https://www.rd.usda.gov/resources/directives/electric-sample-documents">https://www.rd.usda.gov/resources/directives/electric-sample-documents</a>.
c. Federal debt delinquency requirements:
This report indicates whether the applicants are delinquent on any
Federal debt (See 7 CFR 1710.126 and 7 CFR 1710.501(a)(13)). This form
(the Federal Debt Delinquency Certification) is available at <a href="https://www.rd.usda.gov/directives/federal-debt-delinquency-certification">https://www.rd.usda.gov/directives/federal-debt-delinquency-certification</a>.
d. Form RD 400-4, Assurance Agreement:
Applicants must submit a non-discrimination assurance commitment to
comply with certain regulations on non-discrimination in program
services and benefits and on equal employment opportunity as set forth
in 7 CFR part 15, and 12 CFR part 202, 7 CFR part 1901, subpart E, DR
4300-003, DR 4330-0300, DR 4330-005. This form is available at <a href="https://www.rd.usda.gov/directives/compliance-assurance-rd-form-400-4-nov-2017">https://www.rd.usda.gov/directives/compliance-assurance-rd-form-400-4-nov-2017</a>.
e. Articles of Incorporation and Bylaws:
See 7 CFR 1710.501(b)(1). These are required if either document has
been amended since the last loan application
[[Page 13084]]
was submitted to RUS, or if this is the applicant's first application
for a loan under the RE Act.
f. Pro forma financial statements including cash flow projections
and assumptions:
Each applicant must include five-year pro forma income statements,
balance sheets and cash flow projections or business plans and clearly
state the assumptions that underlie the projections, demonstrating that
there is reasonable assurance that the applicant will be able to repay
the guaranteed loan in accordance with its terms (See 7 CFR
1720.6(a)(4)).
g. Pending litigation statement:
A statement from the applicant's counsel listing any pending
litigation, including levels of related insurance coverage and the
potential effect on the applicant, must be submitted to RUS.
3. System for Awards Management and Unique Entity Identifier.
a. At the time of application, each applicant must have an active
registration in the System for Award (SAM) before submitting its
application in accordance with 2 CFR part 25 (<a href="https://www.ecfr.gov/current/title-2/subtitle-A/chapter-I/part-25">https://www.ecfr.gov/current/title-2/subtitle-A/chapter-I/part-25</a>). In order to register in
SAM, entities will be required to create Unique Entity Identifier
(UEI). Instructions for obtaining the UEI are available at <a href="https://sam.gov/content/entity-registration">https://sam.gov/content/entity-registration</a>.
b. Applicant must maintain an active SAM registration, with
current, accurate and complete information, at all times during which
it has an active Federal award or an application under consideration by
a Federal awarding agency.
c. Applicant must ensure it completes the Financial Assistance
General Certifications and Representations in SAM.
d. Applicants must provide a valid UEI in its application, unless
determined exempt under 2 CFR 25.110.
e. The Agency will not make an award until the applicant has
complied with all SAM requirements including providing the UEI. If an
applicant has not fully complied with the requirements by the time the
Agency is ready to make an award, the Agency may determine that the
applicant is not qualified to receive a Federal award and use that
determination as a basis for making a Federal award to another
applicant.
4. Submission Dates and Times. To be considered, applications must
be submitted no later than 5:00 p.m. Eastern Time (ET) May 1, 2023.
5. Funding Restrictions.
Funds from loans guaranteed under this program may only be used in
accordance with this notice, the program regulations and the RE Act.
6. Other Submission Requirements. Such other application documents
and submissions deemed necessary by the Secretary for evaluation of
applications.
E. Application Review Information
1. Criteria.
Each application will be reviewed by the Secretary to determine
whether it is eligible under 7 CFR 1720.5, the information required
under 7 CFR 1720.6 is complete, and the proposed guaranteed bond
complies with applicable statutes and regulations. The Secretary can at
any time reject an application that fails to meet these requirements.
2. Review and Selection Process.
Applications will be subject to a substantive review, on a
competitive basis, by the Administrator based upon the evaluation
factors listed in 7 CFR 1720.7(b). The Administrator may limit the
number of guarantees made to a maximum of five per year, to ensure a
sufficient examination is conducted of applicant requests. RUS will
notify the applicant in writing of the Administrator's approval or
denial of an application. Approvals for guarantees will be conditioned
upon compliance with 7 CFR 1720.4 and 7 CFR 1720.6. The Administrator
reserves the discretion to approve an application for an amount that
was less than requested.
Before a guarantee decision is made by the Administrator, the
Administrator shall request that FFB review the rating agency
determination required by 7 CFR 1720.5(b)(2) as to whether the bond or
note to be issued would receive an investment grade rating without
regard to the guarantee.
F. Federal Award Administration Information
1. Federal Award Notices
RUS will send a commitment letter to an applicant once the
guaranteed loan has been approved. Applicants must accept and commit to
all terms and conditions of the guaranteed loan which are requested by
RUS and FFB before the loan guarantee award can be obligated.
The requirements under 7 CFR 1720.8 must be met by the applicant
prior to the endorsement of a guarantee by the Administrator. Each
Guaranteed Lender will be required to enter into a Guarantee Agreement
with RUS that contains the provisions described in 7 CFR 1720.8
(Issuance of the Guarantee), 7 CFR 1720.9 (Guarantee Agreement), and 7
CFR 1720.12 (Reporting Requirements). The Guarantee Agreement will also
obligate the Guaranteed Lender to pay, on an annual basis, a guarantee
fee equal to 30 basis points (0.30 percent) of the outstanding
principal amount of the guaranteed loan (See 7 CFR 1720.10).
2. Administrative and National Policy Requirements-
Applicants must accept and commit to all terms and conditions of
the guaranteed loan which are requested by RUS and FFB as follows:
a. Compliance conditions.
In addition to the standard conditions placed on the 313A Program
or conditions requested by RUS to ensure loan security and statutory
compliance, applicants must comply with the following conditions:
(1) Each Guaranteed Lender selected under the 313A Program will be
required to post collateral for the benefit of RUS in an amount at
least equal to the aggregate amount of loan advances made to the
Guaranteed Lender under the 313A Program.
(2) The pledged collateral (the Pledged Collateral) shall consist
of outstanding notes or bonds payable to the Guaranteed Lender (the
Eligible Instruments) and shall be placed on deposit with a collateral
agent for the benefit of RUS. To be deemed Eligible Instruments that
can be pledged as collateral, the notes or bonds to be pledged (i)
cannot be classified as non-performing, impaired, or restructured under
generally accepted accounting principles; special mention loans as
defined by the Office of the Comptroller of the Currency; or any other
elevated risk categories used by the Guaranteed Lender, (ii) must be
free and clear of all liens other than the lien created for the benefit
of RUS, (iii) cannot be comprised of more than 30 percent of bonds or
notes from generation and transmission borrowers, (iv) cannot have more
than 5 percent of bonds and notes be from any one particular borrower
and (v) cannot be unsecured notes.
(3) The Guaranteed Lender will be required to place a lien on the
Pledged Collateral in favor of RUS (as secured party) at the time that
the Pledged Collateral is deposited with the collateral agent. RUS will
have the right, in its sole discretion, within 14 business days of the
Guaranteed Lender's written request to pledge Pledged Collateral, to
reject any of the Pledged Instruments and require the Guaranteed Lender
to substitute other Pledged Instruments as collateral with the
collateral agent. Prior to receiving any advances under the 313A
Program, the Guaranteed Lender
[[Page 13085]]
will be required to enter into a pledge agreement, satisfactory to RUS,
with a banking institution serving as collateral agent.
(4) The Guaranteed Lender will be required to agree not to take any
action that would have the effect of reducing the value of the pledged
collateral below the level described above.
(5) Applicants must certify to the RUS, the portion of their loan
portfolio that is:
i. Refinanced RUS debt;
ii. Debt of borrowers for whom both RUS and the applicants have
outstanding loans;
and
iii. Debt of borrowers for whom both RUS and the applicant have
outstanding concurrent loans pursuant to Section 307 of the RE Act, and
the amount of Eligible Loans.
b. Schedule of Loan Repayment: The amortization method for the
repayment of the guaranteed loan shall be repaid by the Guaranteed
Lender: (i) in periodic installments of principal and interest, (ii) in
periodic installments of interest and, at the end of the term of the
bond or note, as applicable, by the repayment of the outstanding
principal, or (iii) through a combination of the methods described in
(i) and (ii) above. The amortization method will be agreed to by RUS
and the Guaranteed Lender.
3. Compliance with Federal Laws.
Applicants must comply with all applicable Federal laws and
regulations.
a. This loan guarantee will be subject to the provisions contained
in the appropriations act for FY 2023, once enacted by Congress. Prior
appropriations acts have included prohibitions against RUS making
awards to applicants having corporate felony convictions within the
past 24 months or to applicants having corporate federal tax
delinquencies. It is possible that such provisions will be included in
the appropriations act for FY 2023.
b. An authorized official within your organization must execute,
date, and return the loan commitment letter to RUS within, no later
than 14 calendar days from the date of the letter, otherwise the
commitment will be voided.
4. Reporting.
Guaranteed Lenders are required to comply with the financial
reporting requirements and Pledged Collateral review and certification
requirements set forth in 7 CFR 1720.12.
G. Federal Awarding Agency Contact(s)
For general questions about this announcement, please contact your
USDA Rural Development contact provided in the ADDRESSES section of
this notice.
H. Other Information
Paperwork Reduction Act
Under the Paperwork Reduction Act (44 U.S.C. 3501 et seq.), OMB
must approve all ``collection of information'' as a requirement for
``answers to * * * identical reporting or recordkeeping requirements
imposed on ten or more persons * * *'' (44 U.S.C. 3502(3)(A)). RUS has
concluded that the reporting requirements contained in this funding
announcement will involve less than 10 persons and do not require
approval under the provisions of the Act.
National Environmental Policy Act
In accordance with 7 CFR 1970.53(a)(7), any proceeds to be used to
refinance bonds or notes previously issued by the Guaranteed Lender for
RE Act purposes are classified as categorical exclusions. However, for
any new projects using 313A Program funds, applicants must consult with
RUS and comply with the Agency regulations at 7 CFR part 1970.
Federal Funding Accountability and Transparency Act
All applicants, in accordance with 2 CFR part 25 (<a href="https://www.ecfr.gov/current/title-2/part-25">https://www.ecfr.gov/current/title-2/part-25</a>), must be registered in SAM and
have a UEI number as stated in Section D.3 of this notice. All
recipients of Federal financial assistance are required to report
information about first-tier sub-awards and executive total
compensation in accordance with 2 CFR part 170 (<a href="https://www.ecfr.gov/current/title-2/part-170">https://www.ecfr.gov/current/title-2/part-170</a>).
Civil Rights Act
All loan guarantees made under this notice are subject to Title VI
of the Civil Rights Act of 1964 as required by the USDA (7 CFR part 15,
subpart A (eCFRT:: 7 CFR part 15 subpart A--Nondiscrimination in
Federally-Assisted Programs of the Department of Agriculture--
Effectuation of title VI of the Civil Rights Act of 1964) and section
504 of the Rehabilitation Act of 1973, title VIII of the Civil Rights
Act of 1968, title IX, Executive Order 13166 (Limited English
Proficiency), Executive Order 11246, and the Equal Credit Opportunity
Act of 1974.
Nondiscrimination Statement
In accordance with Federal civil rights laws and U.S. Department of
Agriculture (USDA) civil rights regulations and policies, the USDA, its
Mission Areas, agencies, staff offices, employees, and institutions
participating in or administering USDA programs are prohibited from
discriminating based on race, color, national origin, religion, sex,
gender identity (including gender expression), sexual orientation,
disability, age, marital status, family/parental status, income derived
from a public assistance program, political beliefs, or reprisal or
retaliation for prior civil rights activity, in any program or activity
conducted or funded by USDA (not all bases apply to all programs).
Remedies and complaint filing deadlines vary by program or incident.
Program information may be made available in languages other than
English. Persons with disabilities who require alternative means of
communication to obtain program information (e.g., Braille, large
print, audiotape, American Sign Language) should contact the
responsible Mission Area, agency, or staff office; the USDA TARGET
Center at (202) 720-2600 (voice and TTY); or the 711 Relay Service.
To file a program discrimination complaint, a complainant should
complete a Form AD-3027, USDA Program Discrimination Complaint Form,
which can be obtained online at <a href="https://www.usda.gov/sites/default/files/documents/ad-3027.pdf">https://www.usda.gov/sites/default/files/documents/ad-3027.pdf</a>, from any USDA office, by calling (866)
632-9992, or by writing a letter addressed to USDA. The letter must
contain the complainant's name, address, telephone number, and a
written description of the alleged discriminatory action in sufficient
detail to inform the Assistant Secretary for Civil Rights (ASCR) about
the nature and date of an alleged civil rights violation.
The completed AD-3027 form or letter must be submitted to USDA by:
(1) Mail: U.S. Department of Agriculture, Office of the Assistant
Secretary for Civil Rights, 1400 Independence Avenue SW, Washington, DC
20250-9410; or
(2) Fax: (833) 256-1665 or (202) 690-7442; or
(3) Email: <a href="/cdn-cgi/l/email-protection#a3d3d1ccc4d1c2ce8dcacdd7c2c8c6e3d6d0c7c28dc4ccd5"><span class="__cf_email__" data-cfemail="bfcfcdd0d8cdded291d6d1cbded4daffcaccdbde91d8d0c9">[email protected]</span></a>.
USDA is an equal opportunity provider, employer, and lender.
Andrew Berke,
Administrator, Rural Utilities Service, USDA Rural Development.
[FR Doc. 2023-04222 Filed 3-1-23; 8:45 am]
BILLING CODE 3410-15-P
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