Notice2023-06376
Notice of Solicitation of Applications for the Rural Energy for America Program for Fiscal Years 2023 and 2024
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Published
March 31, 2023
Issuing agencies
Agriculture DepartmentRural Business-Cooperative Service
Abstract
The Rural Business-Cooperative Service (the Agency) is issuing a second Notice of Solicitation of Applications (Notice) under the Rural Energy for America Program (REAP) as referenced in the notice that was published in the Federal Register on December 16, 2022. This second notice announces the availability of $1.055 billion in Inflation Reduction Act funds across six quarterly cycles to be obligated by September 30, 2024. This Notice also announces the types of projects that qualify for a federal grant share not to exceed 50 percent of the project cost, a set-aside for underutilized renewable energy technologies (underutilized technologies), as well as scoring revisions to support Administration priorities. Applications received on or after April 1, 2023, will be evaluated and scored according to the provisions listed in this Notice, unless otherwise amended via a subsequent notice. The Notice will not be applied retroactively to any applications previously filed. However, a portion of the funding made available under this notice may be made available to add to pooled funds to fund any Fiscal Year (FY) 2023 applications submitted prior to March 31, 2023, with no other changes in funding provisions or scoring allowed.
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<title>Federal Register, Volume 88 Issue 62 (Friday, March 31, 2023)</title>
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[Federal Register Volume 88, Number 62 (Friday, March 31, 2023)]
[Notices]
[Pages 19239-19245]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-06376]
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DEPARTMENT OF AGRICULTURE
Rural Business-Cooperative Service
[Docket No. RBS-22-Business-0029]
Notice of Solicitation of Applications for the Rural Energy for
America Program for Fiscal Years 2023 and 2024
AGENCY: Rural Business-Cooperative Service, USDA.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The Rural Business-Cooperative Service (the Agency) is issuing
a second Notice of Solicitation of Applications (Notice) under the
Rural Energy for America Program (REAP) as referenced in the notice
that was published in the Federal Register on December 16, 2022. This
second notice announces the availability of $1.055 billion in Inflation
Reduction Act funds
[[Page 19240]]
across six quarterly cycles to be obligated by September 30, 2024. This
Notice also announces the types of projects that qualify for a federal
grant share not to exceed 50 percent of the project cost, a set-aside
for underutilized renewable energy technologies (underutilized
technologies), as well as scoring revisions to support Administration
priorities. Applications received on or after April 1, 2023, will be
evaluated and scored according to the provisions listed in this Notice,
unless otherwise amended via a subsequent notice. The Notice will not
be applied retroactively to any applications previously filed. However,
a portion of the funding made available under this notice may be made
available to add to pooled funds to fund any Fiscal Year (FY) 2023
applications submitted prior to March 31, 2023, with no other changes
in funding provisions or scoring allowed.
DATES: As provided for in 7 CFR 4280.122, the Agency, by this Notice,
is increasing the number of competitions for Renewable Energy Systems
and Energy Efficiency Improvements (RES/EEI) grant applications. The
application deadline date and time as outlined in 7 CFR 4280.156(a)
remains unchanged. RES/EEI and Energy Efficient Equipment and Systems
(EEE) guaranteed loan applications are competed on an ongoing basis in
accordance with 7 CFR 5001.315. See Section D.4. of this Notice for
details on REAP competitions.
ADDRESSES: You are encouraged to contact your United States Department
of Agriculture (USDA) Rural Development (RD) State Energy Coordinator
well in advance of the application deadline to discuss your project and
ask any questions about the application process. Contact information
for State Office Energy Coordinators can be found at <a href="https://rd.usda.gov/files/RBS_StateEnergyCoordinators.pdf">https://rd.usda.gov/files/RBS_StateEnergyCoordinators.pdf</a>.
Program guidance and application forms may be obtained at <a href="https://rd.usda.gov/programs-services/all-programs/energy-programs">https://rd.usda.gov/programs-services/all-programs/energy-programs</a>. To submit
an electronic application via <a href="http://grants.gov">grants.gov</a>, follow the instructions for
the REAP funding announcement located at <a href="https://www.grants.gov">https://www.grants.gov</a>.
FOR FURTHER INFORMATION CONTACT: Jonathan Burns, Program Management
Division, Rural Business-Cooperative Service, United States Department
of Agriculture, 774-678-7238 or email <a href="/cdn-cgi/l/email-protection#edaebd8a9f8c83999ead989e898cc38a829b"><span class="__cf_email__" data-cfemail="7231221500131c060132070116135c151d04">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
Overview
Federal Awarding Agency Name: USDA, Rural Business-Cooperative
Service.
Funding Opportunity Title: Rural Energy for America Program (REAP).
Announcement Type: Notice of Solicitation of Applications.
Funding Opportunity Number: RDBCP-REAP-RES-EEI-2023-2024.
Assistance Listing Number: 10.868.
Dates: See the DATES section of this Notice and Section D.4. for
details on REAP competitions.
Rural Development Key Priorities: The Agency encourages applicants
to consider projects that will advance the following key priorities
below:
<bullet> Assisting rural communities recover economically through
more and better market opportunities and through improved
infrastructure;
<bullet> Ensuring all rural residents have equitable access to 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 Agency provides grants, guaranteed
loans, and combined grant and guaranteed loan combinations thru the
REAP program to help agricultural producers and rural small businesses
reduce energy costs and consumption and helps meet the Nation's
critical energy needs. Applications for REAP may be submitted at any
time throughout the year.
2. Statutory and Regulatory Authority. REAP is authorized under 7
U.S.C. 8107 and is implemented by 7 CFR 4280 Subpart B (<a href="https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XLII/part-4280#part-4280">https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XLII/part-4280#part-4280</a>) and 7 CFR part 5001 (<a href="https://www.ecfr.gov/current/title-7/subtitle-B/chapter-L/part-5001">https://www.ecfr.gov/current/title-7/subtitle-B/chapter-L/part-5001</a>). The Inflation Reduction Act (IRA) of
2022 provides additional authorities for REAP (Public Law 117-169,
Section 22002).
3. Definitions. The definitions applicable to this notice are
published at 7 CFR 4280.103 and 7 CFR 5001.3.
For the purpose of this Notice only, underutilized renewable energy
technologies (underutilized technologies) are defined as those
technologies which do not produce greenhouse gases at the project
level, and which make up less than 20 percent of the total grant
dollars obligated at the end of the fiscal year, two (2) years previous
to the current year. For example, FY 2021 award data will be utilized
to determine which technologies are underutilized technologies for the
FY 2023 competition.
For awareness, the number of employees calculation used to
determine the size of a business concern in the definition of Small
Business is being updated to 24 months versus 12 months, to align with
recent changes made by the Small Business Administration.
B. Federal Award Information
Type of Award: Competitive grants and guaranteed loans.
Fiscal Year Funds: FY 2023 and FY 2024.
Available Funds: Total approximate budget authority made available
under this notice is as follows:
------------------------------------------------------------------------
Source Available funds
------------------------------------------------------------------------
2022 carryover, 2023, and 2024 Inflation up to $910,251,000.
Reduction Act.
2022 carryover, 2023 and 2024 Inflation up to $144,752,000.
Reduction Act Set-Aside for Underutilized
Technologies.
-----------------------------
Total Funds Available................. at least $1,055,003,000.
------------------------------------------------------------------------
The Agency may, at its discretion, increase the total level of
funding available in this funding round (or in any category in this
funding round) from any available source provided the awards meet the
requirements of the statute which made the funding available to the
Agency.
Award Amounts: See Funding Restrictions in Section E of this Notice
for minimum and maximum award amounts.
Anticipated Award Date: Projects will be awarded quarterly with all
FY obligations made prior to September 30th of each year.
[[Page 19241]]
Performance Period: Up to 24 months for grants. Guaranteed loans
are governed by the loan terms.
Type of Instrument: Grant, guaranteed loan, and grant and
guaranteed loan combined funding.
Approximate Number of Awards: The estimated number of awards of
9,000 is based on the anticipated level of funding as noted in the
table above. The number of awards will depend on the actual amount of
funds made available and on the number of eligible applicants
participating in this program.
Available Funds Information:
(a) Program Level Funds. This Notice is announcing the remainder of
FY 2022 mandatory Farm Bill carryover funding in addition to FYs 2023
and 2024 IRA funding not announced in the December 16, 2022, REAP
notice, including any carryover. This Notice also includes a set-aside
for underutilized renewable energy technologies. Expenses incurred in
developing applications will be at the applicant's risk.
1. Energy Audit and Renewable Energy Development Assistance (EA/
REDA) grant funds. The amount of funds that will be available for EA/
REDA will be dependent on new Farm Bill funding received, if any, and
any other appropriated funding. Applications will be competed at the
National Office and obligations of EA/REDA funds will take place
through March 31 of each year.
2. RES/EEI grant funds. IRA funds will be available to fund
requests that do not exceed 50 percent of total eligible project costs.
Farm Bill funds and FY 2024 annual appropriated funds, if any, will be
available to fund requests that do not exceed 25 percent of total
eligible project costs.
(i) To ensure that small projects have a fair opportunity to
compete for the funding and to be consistent with the requirements set
forth in the 7 U.S.C. 8107(e)(1), the Agency will set aside not less
than 20 percent of the Farm Bill and IRA funds until June 30 of each
year to fund grant requests of $20,000 or less, including the grant
portion of a combined grant and guaranteed loan request. Each RD State
Office will receive a set-aside allocation of IRA funds for grant
requests of $20,000 or less, which includes combination grant and
guaranteed loan requests where the grant amount requested is $20,000 or
less. States may request Farm Bill set-aside funds from their
allocation held at the National Office. Complete grant applications
requesting $20,000 or less must be submitted by March 31 to compete for
set-aside funding. Any unobligated balance of funds remaining in state
set-aside accounts on June 1 will be pooled by the National Office for
national set-aside competitions. Obligation of set-aside grant funds
will take place through June 30 of each year.
(ii) Each RD State Office will also receive allocations of
unrestricted Farm Bill funds, if any, and IRA grant funds that can be
used to fund any RES/EEI grant application regardless of the amount of
grant requested, including the grant portion of a combination grant and
guaranteed loan request. Complete applications must be received by June
30th to compete for FY funding. Any unobligated balance of funds
remaining in state unrestricted accounts on August 1 will be pooled to
the National Office for a national competition of funds. The pooling
will first consider funding underutilized technology with the funding
set-aside. Obligation of unrestricted grant funds will take place
through September 30th of each year.
3. RES/EEI and EEE loan guarantee funds. RD's National Office will
maintain a reserve of Farm Bill guaranteed loan funds to fund
guaranteed loan only requests or the loan portion of a combined funding
request. EEE guaranteed loans for agricultural production and
processing shall not exceed 15 percent of the funds available to the
program. Applications will be reviewed and processed when received.
Those applications that meet the Agency's underwriting requirements and
are credit worthy will compete in national competitions for guaranteed
loan funds periodically. If funds remain after the final guaranteed
loan-only national competition, the Agency may elect to utilize budget
authority to fund additional grant-only applications. The guaranteed
fee rates, the annual renewal fee, the maximum percentage of guarantee
and the maximum portion of guaranteed authority available for a reduced
guaranteed fee will be published annually in a separate notice.
Obligation of guaranteed loan funds will take place through September
30th of each year.
4. RES/EEI combined grant and guaranteed loan funds. Funding
availability for combined grant and guaranteed loan applications is
outlined in Sections B and C of this Notice. Combination funding
requests are scored using RES/EEI grant scoring criteria in accordance
with 7 CFR 4280.121 and 7 CFR 4280.137(h). If the combined application
is ranked high enough to receive state allocated grant funds, the state
will request funding for the guaranteed loan portion of the request
from the National Office guaranteed loan reserve and no further
competition will be required. If not funded by the state allocation of
funds, combined grant and guaranteed loan applications may be submitted
to the National Office to compete in the appropriate National Office
competition. Obligation of these funds will take place through
September 30th of each year.
Signage: The Awardee is encouraged to display USDA standard
infrastructure investment signage, available for download from the
Agency, during construction of the project. Expenditures for such
signage shall be a permitted eligible cost of IRA funded projects.
C. Eligibility Information
1. Eligibility Requirements. The eligibility requirements for the
applicant, borrower, lender, and project (as applicable) are clarified
in 7 CFR part 4280 Subpart B and in 7 CFR part 5001 and are summarized
in this Notice. Failure to meet the eligibility criteria by the time of
the competition window will preclude the application from competing
until all eligibility criteria have been met.
i. Eligible Applicants. Grant applicants must meet the requirements
specified in 7 CFR 4280.110. An applicant must also meet the
requirements specified at: 7 CFR 4280.112 for RES/EEI grant; 7 CFR
4280.137 for RES/EEI combined grant and guarantee; and 7 CFR 4280.149
for EA/REDA grant.
ii. Eligible Borrowers and Lenders. To be eligible for the
guaranteed loan portion of the program, borrowers must meet the
eligibility requirements in 7 CFR 5001.126 and lenders must meet the
eligibility requirements in 7 CFR 5001.130.
iii. Eligible Projects. To be eligible for the program a project
must meet the eligibility requirements specified in 7 CFR 4280.113 for
RES/EEI grant; 7 CFR 4280.150 for EA/REDA grant; 7 CFR 4280.137 for
RES/EEI combined grant and guaranteed loan; and 7 CFR 5001.106 through
5001.108, as applicable, for RES/EEI/EEE loan guarantees.
2. Cost Sharing or Matching. Matching requirements for each type of
funding, as applicable, are outlined in 7 CFR 4280.115 (b) for RES/EEI
grant; and 7 CFR 4280.137 for RES/EEI combined grant and guaranteed
loan.
3. Other.
i. Ineligible project costs are defined at: 7 CFR 4280.115(d) for
RES/EEI grant and combined grant and guaranteed loans; 7 CFR
4280.152(c) for EA/REDA grant; and 7 CFR 4280.137 (j)(5) and 5001.122
for RES/EEI/EEE loan guarantees.
[[Page 19242]]
ii. Other compliance requirements. The USDA Departmental
Regulations and Laws that contain other compliance requirements are
referenced in Section D.5. of this Notice. Applicants who have been
found to be in violation of applicable Federal statutes will be
ineligible.
iii. Hemp production. The Agriculture Improvement Act of 2018,
Public Law 115-334, (the 2018 Farm Bill) requires USDA to promulgate
regulations and guidelines to establish and administer a program for
the production of hemp in the United States.
In determining eligibility for the applicant, project or use of
funds, any project applying for funding under the REAP program and
proposing to produce, procure, supply or market any component of the
hemp plant or hemp related by-products, or provide technical assistance
related to such products, must have a valid license from an approved
state, Tribal or Federal plan pursuant to Section 10113 of the 2018
Farm Bill, to be in compliance with regulations published by the
Agricultural Marketing Service at 7 CFR part 990, and meet any
applicable U.S. Food and Drug Administration and U.S. Drug Enforcement
Administration regulatory requirements. Verification of valid hemp
licenses will occur prior to award. In addition, all projects proposing
to use biomass feedstock from any part of the hemp plant must
demonstrate assurance of an adequate supply of the feedstock.
D. Application and Submission Information
1. Address to Request Application Package. Application materials
may be obtained by contacting the RD Energy Coordinator for the state
where the proposed project will be located, as identified via the
following link: <a href="https://www.rd.usda.gov/files/RBS_StateEnergyCoordinators.pdf">https://www.rd.usda.gov/files/RBS_StateEnergyCoordinators.pdf</a>. In addition, for grant applications,
applicants may obtain electronic grant applications for REAP from
<a href="http://www.grants.gov">www.grants.gov</a>.
2. Content and Form of Application Submission. Applicants seeking
to participate in this program must submit applications in accordance
with this Notice, 7 CFR part 4280 subpart B and 7 CFR part 5001, as
applicable. Applicants must submit complete applications by the dates
identified in Section D.4., of this notice, containing all parts
necessary for the Agency to determine applicant and project
eligibility, to score the application, and to conduct the technical
evaluation, as applicable, in order to be considered. The Agency
encourages the applicant to reach out to their Energy Coordinator to
determine application status. The applicant bears all risk should they
incur project costs or commence construction activities prior to Agency
notification of a complete and eligible application and the completion
of an environmental review.
3. Submission. Applicants must submit one original, hardcopy or
electronic application to the appropriate RD Energy Coordinator for the
State where the applicant's proposed project will be located. For grant
applications, submission may be via <a href="http://www.grants.gov">www.grants.gov</a>. A list of USDA RD
State Office Energy Coordinators is available via the following link:
<a href="https://www.rd.usda.gov/files/RBS_StateEnergyCoordinators.pdf">https://www.rd.usda.gov/files/RBS_StateEnergyCoordinators.pdf</a>.
4. Submission Dates and Times. Grant applications, guaranteed loan-
only applications, and combined grant and guaranteed loan applications
for financial assistance may be submitted at any time on an ongoing
basis and will compete accordingly based on the application window
submission deadlines. In accordance with 7 CFR part 4280 and this
Notice, application submission deadlines are summarized in the table
below. To be considered for funds under this Notice, complete
applications must be received by the appropriate USDA RD State Office
Energy Coordinator or via <a href="http://www.grants.gov">www.grants.gov</a> by 4:30 p.m. local time on the
application window submission deadline. The complete application date
is the date the Agency receives the last piece of information that
allows the Agency to determine eligibility and to score, rank, and
compete the application for funding. The Agency encourages the
applicant to reach out to their Energy Coordinator to determine
application status.
When an application window closes, the next application window
opens on the following day. An application received after the window
closing date will be considered with other complete applications
received in the next application window.
------------------------------------------------------------------------
Application window Application window
Type of application opening dates closing dates
------------------------------------------------------------------------
EA/REDA......................... February 1, 2023.. January 31, 2024.
RES/EEI (Q1).................... April 1, 2023..... June 30, 2023*.
RES/EEI (Q2).................... July 1, 2023...... September 30,
2023.
RES/EEI (Q3).................... October 1, 2023... December 31, 2023.
RES/EEI (Q4).................... January 1, 2024... March 31, 2024.
RES/EEI (Q5).................... April 1, 2024..... June 30, 2024*.
RES/EEI (Q6).................... July 1, 2024...... September 30,
2024.
RES/EEI/EEE Guaranteed Loans.... Continuous Continuous
application cycle. application
cycle.
------------------------------------------------------------------------
* Unless subsequent deadlines are published via a Notice, applications
received after this date will be considered in the next quarter for
the subsequent FY funding.
5. Other Submission Requirements. The following are applicable for
all REAP applications:
i. Environmental information. For the Agency to consider an
application, the application must address all environmental
considerations specific to the project in accordance with 7 CFR part
1970 and provide supporting documentation as necessary. Applicants are
advised to contact the Agency as soon as possible and prior to
commissioning a project to determine environmental requirements and
ensure adequate review time.
ii. Transparency Act Reporting. All recipients of Federal financial
assistance are required to report information about first-tier
subawards and executive compensation in accordance with 2 CFR part 170.
If an applicant does not have an exception under 2 CFR 170.110(b), the
applicant must then ensure that they have the necessary processes and
systems in place to comply with the reporting requirements to receive
funding.
iii. Race, ethnicity, and gender. The Agency is requesting that
each applicant provide race, ethnicity, and gender information about
the applicant. The information will allow the Agency to evaluate its
outreach efforts to under-served and under-represented populations.
Applicants are encouraged to furnish this information with their
application but are not required to do so. An applicant's eligibility
or the
[[Page 19243]]
likelihood of receiving an award will not be impacted by furnishing or
not furnishing this information.
E. Funding Restrictions
The following funding limitations apply to applications submitted
under this Notice.
1. RES/EEI/EEE applications.
i. Modification is being made via this Notice to increase the
maximum grant assistance noted in 7 CFR 4280.115(a)(3). Applicants can
compete and be awarded only one RES grant and one EEI grant in a FY,
which includes the grant portion of a combined funding request. If it
is determined that an applicant is affiliated with another entity that
has also applied, then the maximum grant award applies to all
affiliated entities as if they applied as one applicant. An affiliate
is an entity controlling or having the power to control another entity,
or a third party or parties that control or have the power to control
both entities. The maximum amount of grant assistance to an entity will
not exceed $1,500,000 in a FY.
ii. Modification is being made via this Notice to the Federal grant
portion noted in 7 CFR 4280.115(a). Pursuant to Section 22002 of the
IRA, the Federal grant portion of a project utilizing IRA funds cannot
exceed 50 percent of total eligible project costs. Applications
submitted on or after April 1, 2022, through March 31, 2023, are
eligible for up to 40 percent Federal grant share from IRA funds as
outlined in the December 16, 2022, notice. Applications submitted on or
after April 1, 2023, are eligible for up to 50 percent Federal grant
share from IRA funds if the project meets one of the following
criteria:
(a) Is a renewable energy system or retrofit of a renewable energy
system that produces zero greenhouse gas emissions (carbon dioxide
(CO<INF>2</INF>), methane (CH<INF>4</INF>), nitrous oxide
(N<INF>2</INF>O), or fluorinated gases) at the project level;
(b) Is located in an Energy Community as defined in 26 U.S.C.
45(b)(11)(B), and as determined by the Department of Energy;
(c) Is an energy efficiency improvement project; or
(d) Is a project proposed from an eligible Tribal corporation or
other Tribal Business entities (including Tribal agriculture
operations) as described in 7 CFR part 4280.
All other applications, such as biomass and biogas projects, are
eligible for up to 25 percent Federal grant share from IRA funds. The
Federal grant portion of a project utilizing Farm Bill funds or FYs
2023 or 2024 appropriated funds, if any, cannot exceed 25 percent of
total eligible project costs. Sources of REAP grant funds cannot be
combined to fund a project. Loan and grant combination applications may
use IRA grant funds and mandatory Farm Bill loan funds to fund a
project.
iii. For RES grants, the minimum request is a total project cost
threshold of $10,000, therefore at 25 percent funding the minimum grant
request is $2,500 and at 50 percent funding the minimum grant request
is $5,000. The maximum grant request is $1,000,000. For EEI grants, the
minimum request is a total project cost threshold of $6,000, therefore
at 25 percent funding the minimum grant request is $1,500 and at 50
percent funding the minimum grant request is $3,000. The maximum grant
request is $500,000. These minimum and maximum limits also apply to the
grant portion of a combined funding request.
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
Renewable energy systems Energy efficiency improvements
----------------------------------------------------------------------------------------------------------------
At 25% Funding--Minimum Grant Request......... $2,500 At 25% Funding--Minimum Grant $1,500
Request.
At 50% Funding--Minimum Grant Request......... 5,000 At 50% Funding--Minimum Grant 3,000
Request.
Maximum Grant Request......................... 1,000,000 Maximum Grant Request........... 500,000
----------------------------------------------------------------------------------------------------------------
iv. For RES/EEI/EEE loan guarantees or the loan guaranteed portion
of a combined funding request, the minimum REAP guaranteed loan amount
is $5,000 and the maximum amount of a guaranteed loan to be provided to
a borrower is $25 million. REAP guaranteed loan requests and combined
grant and guaranteed loan requests will not exceed 75 percent of total
eligible project costs, with the portion of any grant requests under
this Notice not exceeding 25, or 50 percent of total eligible project
costs, as applicable to the source of grant funds and grant funding
provisions as outlined in this Notice.
2. EA/REDA applications.
i. Applicants may submit only one EA grant application and one REDA
grant application in a FY. Separate applications must be submitted for
EA funding and REDA funding. If an application is submitted for both EA
and REDA funding or if an application's scope of work includes both EA
and REDA activities, it will be determined ineligible for competition.
The maximum aggregate amount of EA and REDA grant awards to any one
recipient cannot exceed $100,000 in a FY.
ii. Applicants that have received one or more grants under this
program must have made satisfactory progress per 7 CFR 4280.110(a)
before being considered for funding.
iii. The 2018 Farm Bill mandates that the recipient of an EA grant
must require the agricultural producer or rural small business
receiving the energy audit to pay at least 25 percent of the cost of
the energy audit, which shall be retained by the grantee for the cost
of the audit.
F. Application Review Information
1. Scoring. All complete applications will be scored in accordance
with the following:
i. RES/EEI grant applications and RES/EEI combined grant and loan
guarantee requests received between April 1, 2022, through March 31,
2023, will be scored according to the Notice published in the Federal
Register on December 16, 2022.
ii. RES/EEI grants and RES/EEI combined grant and loan guarantee
requests submitted on or after April 1, 2023, will be scored based on 7
CFR 4280.121 and criteria identified in F.1.v. below. The following
modifications to the scoring criteria outlined in 7 CFR 4280.121 will
be applied for this section:
(a) Existing business and size of request, 7 CFR 4280.121(e) and
(g) will be removed from the scoring criteria.
(b) Project is located in a Disadvantaged Community or a Distressed
Community (15 points will be added). A Disadvantaged Community will be
determined by the Agency by using the Council on Environmental
Quality's Climate and Economic Justice Screening Tool (which is
incorporated into the USDA look-up map) which identifies communities
burdened by climate change and environmental injustice. Additionally,
all communities within the boundaries of Federally Recognized Tribes
and Alaska Native Villages will also be determined to be Disadvantaged
Communities by the Agency. Distressed Community will be determined by
the Agency by using the Economic Innovation Group's Distressed
Communities Index (which is incorporated into the USDA look-up map),
which uses several socio-
[[Page 19244]]
economic measures to identify communities with low economic well-being.
To determine if your project is located in a Disadvantaged Community or
a Distressed Community, please use the following USDA look-up map:
<a href="https://ruraldevelopment.maps.arcgis.com/apps/webappviewer/index.html?id=4acf083be4c44bb7864d90f97de0c788">https://ruraldevelopment.maps.arcgis.com/apps/webappviewer/index.html?id=4acf083be4c44bb7864d90f97de0c788</a>.
(c) Environmental benefits, 7 CFR 4280.121(a) is being increased to
a maximum of 10 points and points will be awarded as follows. All
projects which do not produce greenhouse gases at the project level
will be awarded five points and may be considered for up to a maximum
of 10 points. Applicants must provide a detailed narrative or analysis
to support additional environmental benefits. One point will be awarded
for each documented environmental benefit supported by the project;
does not convert farmland; does not contribute to deforestation or
addresses fire hazards on forest lands; documented water conservation;
complies with EPA's renewable fuel standards; and at least 25% of
project components are biobased.
(d) Commitment of funds, 7 CFR 4280.121(c) is being decreased to a
maximum of 10 points.
(e) State Director and Administrator priority points, 7 CFR
4280.121(h) have been modified as shown in item F.1.v. below.
(f) The remaining scoring criteria, energy generated, replaced or
saved; previous grantees and borrowers; and simple payback, 7 CFR
4280.121 (b), (d), and (f), respectively, remain as stated in the
regulation.
Table Summarizing the REAP RES and EEI Scoring Changes
----------------------------------------------------------------------------------------------------------------
Scoring Criteria for REAP RES/EEI applications submitted April Scoring Criteria for REAP RES/EEI applications
1, 2022, to March 31, 2023 submitted on and after April 1, 2023
----------------------------------------------------------------------------------------------------------------
Points Criteria Points Criteria
----------------------------------------------------------------------------------------------------------------
25................................... Energy generated/saved/ 25..................... Energy generated/saved/
replaced. replaced
15................................... Previous recipient? If 15..................... Previous recipient? If
no, 15 points and no, 15 points and
scales from there. scales from there
15................................... Length of payback 15..................... Length of payback
period. period
15................................... Commitment of matching 10..................... Commitment of matching
funds. funds
5.................................... Environmental benefits. 10..................... Environmental benefits
10................................... Size of request........ 15..................... Located in a
Disadvantaged
Community or a
Distressed Community.
5.................................... Existing business...... ....................... .......................
10................................... State Director/ 10..................... State Director/
Administrator Pts.. Administrator Pts.
100.................................. Total.................. 100.................... Total
----------------------------------------------------------------------------------------------------------------
iii. EA/REDA grants will be scored based on 7 CFR 4280.155.
iv. RES/EEI/EEE guaranteed loans will be scored based on 7 CFR
5001.319 and item F.1.v. below.
v. State Director or Administrator priority points are found in 7
CFR 4280.121(h), 4280.137(h), and 5001.319(g). For the purposes of this
notice, the State Director or Administrator at their discretion may
award up to 10 priority points maximum for projects which meet any of
the following criteria: (i) Selecting the application helps achieve
geographic diversity, which may include points based upon the size of
the funding request; (ii) The applicant is a member of an unserved or
underserved population described as follows: (1) Owned by a veteran,
including but not limited to individuals as sole proprietors, members,
partners, stockholders, etc., of not less than 20 percent. In order to
receive points, applicants must provide a statement in their
application to indicate that owners of the project have veteran status;
or (2) Owned by a member of a socially disadvantaged group, which are
groups whose members have been subjected to racial, ethnic, or gender
prejudice because of their identity as members of a group without
regard to their individual qualities. In order to receive points, the
application must include a statement to indicate that the owners of the
project are members of a socially disadvantaged group; (iii) The
proposed project is in a Federally declared major disaster area.
Declarations must be within the last 2 calendar years; or (iv) the
proposed project is located in (1) an area where 20 percent or more of
its population is living in poverty over the last 30 years, as defined
by the United States Census Bureau, or (2) an area that has experienced
long-term population decline, or loss of employment. Except for veteran
and socially disadvantaged group status, all other priority points are
based upon project location specific criteria which will be documented
automatically by the Agency. State Director or Administrator priority
points for a REAP application cannot exceed 10 points total.
2. Competitions. As provided for in 7 CFR 4280.122, additional
competition windows are being added to allow RES/EEI grants, including
combination grant and guaranteed loan requests, submitted on or after
April 1, 2023, to compete quarterly. There are six quarterly
application windows. Applications compete in the quarter following the
quarter in which the application was submitted. Quarterly windows
through the end of FY 2024 are as follows: Q1, April-June 2023; Q2,
July-September 2023; Q3, October-December 2023; Q4, January-March 2024;
Q5, April-June 2024; Q6, July-September 2024. Applications must be
received, regardless of postmark, by the applicable State Office by
4:30 p.m. local time on the final day of each quarter or else they will
be considered submitted in the following quarter. If the last day of
the quarter falls on a non-business day or a Federally-observed
holiday, the next Federal business day will be considered the last day
for receipt of a complete application for the quarter. Applications not
funded in a given quarter will rollover to the next quarterly
competition however, the applicant must file a new application if the
application is not funded in the final fiscal year competition (final
fiscal year competitions are Q2 for September 2023 and Q6 for September
2024).
There are multiple sources and reserves of funding and the
application will compete accordingly based upon on the dollar amount of
grant request (set-aside or unrestricted), the percent of Federal grant
share to total project cost (IRA or Farm Bill), or if the definition
[[Page 19245]]
of underutilized technologies, as defined in Section A.3. is met. The
final FY quarterly application window for grant requests of $20,000 or
less to compete in the set-aside is the quarter ending March 31st which
allows the application to compete prior to the June 30th set-aside
obligation deadline. The final FY quarterly application window,
regardless of the size of the grant request, to compete for fiscal year
funds is the quarter ending June 30th which allows the application to
compete prior to the September 30th unrestricted obligation deadline.
Funds not used in a given quarter will roll over to the next quarter.
State allocated restricted funds will be pooled on June 1 to hold a
national pooled competition for grants requesting $20,000 or less.
State allocated, unrestricted funds, will be pooled on or before August
1st to hold a national pooled competition for grants unrestricted by
the size of the grant request. To compete in a national pooling an
application must have competed in at least one state competition.
Applications not funded in the national unrestricted pooling
competition must be withdrawn. If eligible, the applicant may submit a
new application for the project to compete in the next fiscal year.
Unless modified in a subsequent notice, the maximum number of
competitions a complete and eligible application will be able to
compete within the FY is outlined in 7 CFR 4280.156 for EA/REDA grants,
and 7 CFR 5001.315 for guaranteed loans. If the application remains
unfunded after the final National Office competition for the FY it must
be withdrawn.
3. Notification of funding determination. As per 7 CFR 4280.111(c)
and 7 CFR 5001.315(b)(2), all applicants will be informed in writing by
the Agency as to the funding determination of the application.
H. Build America, Buy America Act
Funding to Non-Federal Entities. Awardees that are Non-Federal
Entities, defined pursuant to 2 CFR 200.1 as any State, local
government, Indian tribe, Institution of Higher Education, or nonprofit
organization, shall be governed by the requirements of Section 70914 of
the Build America, Buy America Act (BABAA) within the IIJA. Any
requests for waiver of these requirements must be submitted pursuant to
USDA's guidance available online at <a href="https://www.usda.gov/ocfo/federal-financial-assistance-policy/USDABuyAmericaWaiver">https://www.usda.gov/ocfo/federal-financial-assistance-policy/USDABuyAmericaWaiver</a>.
I. Other Information
1. Congressional Review Act Statement. Pursuant to Subtitle E of
the Small Business Regulatory Enforcement Fairness Act of 1996 (also
known as the Congressional Review Act or CRA); 5 U.S.C. 801 et seq.,
the Office of Information and Regulatory Affairs in the Office of
Management and Budget designated this action as a major rule as defined
by 5 U.S.C. 804(2), because it is likely to result in an annual effect
on the economy of $100,000,000 or more. Accordingly, there is a 60-day
delay in the effective date of this action, and the Agency will not
take action on applications until the later of 60 days after
notification to Congress or May 30, 2023. The 60-day delay required by
the CRA is not expected to have a material impact upon the
administration and/or implementation of this program.
2. Paperwork Reduction Act. In accordance with the Paperwork
Reduction Act of 1995, the information collection requirements
associated with the programs, as covered in this notice, have been
approved by the Office of Management and Budget (OMB) under OMB Control
Number 0570-0067.
3. Nondiscrimination Statement. In accordance with Federal civil
rights law and USDA civil rights regulations and policies, the USDA,
its Agencies, offices, and 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:
(i) Mail: U.S. Department of Agriculture, Office of the Assistant
Secretary for Civil Rights, 1400 Independence Avenue SW, Washington, DC
20250-9410; or
(ii) Fax: (833) 256-1665 or (202) 690-7442; or
(iii) Email: <a href="/cdn-cgi/l/email-protection#2b5b59444c594a460542455f4a404e6b5e584f4a054c445d"><span class="__cf_email__" data-cfemail="0e7e7c61697c6f632067607a6f656b4e7b7d6a6f20696178">[email protected]</span></a>
USDA is an equal opportunity provider, employer, and lender.
Karama Neal,
Administrator, Rural Business-Cooperative Service.
[FR Doc. 2023-06376 Filed 3-30-23; 8:45 am]
BILLING CODE 3410-XY-P
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</html>Indexed from Federal Register on March 31, 2023.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.