Notice of Funding Availability (NOFA) for Repowering Assistance Payments to Eligible Biorefineries, 13349-13351 [2011-5574]

Agencies

• DEPARTMENT OF AGRICULTURE
• Rural Business-Cooperative Service
• Rural Utilities Service

[Federal Register Volume 76, Number 48 (Friday, March 11, 2011)]
[Notices]
[Pages 13349-13351]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-5574]


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DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service

Rural Utilities Service


Notice of Funding Availability (NOFA) for Repowering Assistance 
Payments to Eligible Biorefineries

AGENCY: Rural Business-Cooperative Service and Rural Utilities Service, 
USDA.

ACTION: Notice.

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SUMMARY: This Notice announces the acceptance of applications for 
payments to eligible biorefineries to encourage the use of renewable 
biomass as a replacement fuel source for fossil fuels used to provide 
process heat or power in the operation of these eligible biorefineries. 
To be eligible for payments, biorefineries must have been in existence 
on June 18, 2008. The Notice announces the availability of at least $25 
million to make payments to eligible biorefineries in Fiscal Year 2011, 
in addition to any carry-over funds from Fiscal Year 2010.

DATES: Applications for participating in this program for Fiscal Year 
2011 will be accepted from March 11, 2011 through June 9, 2011. 
Applications received after June 9, 2011, regardless of their postmark, 
will not be considered for Fiscal Year 2011 payments. If the actual 
deadline falls on a weekend or a Federally-observed holiday, the 
deadline is the next Federal business day.

ADDRESSES: Application materials may be obtained by contacting USDA, 
Rural Development-Energy Division, Program Branch, Attention: 
Repowering Assistance Program, 1400 Independence Avenue, SW., Stop 
3225, Washington, DC 20250-3225.
    Submit applications to USDA, Rural Development-Energy Division, 
Program Branch, Attention: Repowering Assistance Program, 1400 
Independence Avenue, SW., Stop 3225, Washington, DC 20250-3225.

FOR FURTHER INFORMATION CONTACT: For further information on this 
payment program, please contact Fred Petok, USDA, Rural Development, 
Business Programs Energy Division, 1400 Independence Avenue, SW., Room 
6870, STOP 3225, Washington, DC 20250-3225. Telephone: 202-720-1400. E-
mail: frederick.petok@wdc.usda.gov.

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

    The information collection requirements contained in the Notice of 
Funds Availability for the Section 9004 Repowering Assistance Payments 
to Eligible Biorefineries program published on June 12, 2009, were 
approved by the Office of Management and Budget (OMB) under emergency 
clearance procedures and assigned OMB Control Number 0570-0058. As 
noted in the June 12, 2009 notice, the Agency sought emergency 
clearance to comply with the time frames mandated by a Presidential 
Memorandum in order to implement the Program as quickly as possible, 
having determined that providing for public comment under the normal 
procedure would unduly delay the provision of benefits associated with 
this Program and be contrary to the public interest. Now, however, in 
accordance with the Paperwork Reduction Act of 1995, the Agency is 
seeking standard OMB approval of the reporting and recordkeeping 
requirements contained in the interim rule. In the publication of the 
proposed rule on April 16, 2010, the Agency solicited comments on the 
estimated burden. The Agency received no comments in response to this 
solicitation. This information collection requirement will not become 
effective until approved by OMB. Upon approval of this information 
collection, the Agency will publish a notice in the Federal Register.

Overview

    Federal Agency Name: Rural Business-Cooperative Service (an agency 
of the United States Department of Agriculture in the Rural Development 
mission area).
    Payment Proposal Title: Repowering Assistance Program.
    Announcement Type: Initial announcement.
    Catalog of Federal Domestic Assistance Number. The CFDA number for 
this Notice is 10.866.

DATES: The Repowering Assistance Program application period for Fiscal 
Year 2011 is March 11, 2011 to June 9, 2011.
    Availability of Notice and Rule. This Notice and the interim rule 
for the Repowering Assistance Program are available on the USDA Rural

[[Page 13350]]

Development Web site at https://www.rurdev.usda.gov/bcp_repoweringassistance.html and at https://www.rurdev.usda.gov/rbs/busp/bprogs.htm.

I. Funding Opportunity Description

    A. Purpose of the Program. The purpose of this program is to 
provide financial incentives to biorefineries in existence on June 18, 
2008, the date of the enactment of the Food, Conservation, and Energy 
Act of 2008 (the 2008 Farm Bill) (Pub. L. 110-246), to replace the use 
of fossil fuels used to produce heat or power at their facilities by 
installing new systems that use renewable biomass, or to produce new 
energy from renewable biomass.
    B. Statutory Authority. This program is authorized under Title IX, 
Section 9001, of the Food, Conservation, and Energy Act of 2008 (Pub. 
L. 110-246).
    C. Definition of Terms. The definitions applicable to this Notice 
are published at 7 CFR 4288.2.

II. Award Information

    A. Available funds. The Agency is authorizing at least $25 million 
for this program in Fiscal Year 2011, in addition to any carry-over 
funds from Fiscal Year 2010.
    B. Number of payments. The number of payments will depend on the 
number of participating biorefineries.
    C. Amount of payments. The Agency will determine the amount of 
payments to be made to a biorefinery taking into consideration the 
percentage reduction in fossil fuel used by the biorefinery (including 
the quantity of fossil fuels a renewable biomass system is replacing) 
and the cost and cost-effectiveness of the renewable biomass system.
    D. Payment limitations. There is no minimum payment amount that an 
individual biorefinery can receive. The maximum amount an individual 
biorefinery can receive under this Notice is 50 percent of total 
eligible project costs up to a maximum of $5 million.
    E. Project costs. Eligible project costs will be only for project 
related construction costs for repowering improvements associated with 
the equipment, installation, engineering, design, site plans, 
associated professional fees, permits and financing fees. Any project 
costs incurred by the applicant prior to application for payment 
assistance under this Notice will be ineligible for payment assistance.
    F. Type of instrument. Payment agreement.

III. Eligibility Information

    A. Eligible applicants. To be eligible for this program, an 
applicant must be a biorefinery that has been in existence on June 18, 
2008, utilizing only renewable biomass for replacement fuel.
    B. Ineligible projects. A project is not eligible under this Notice 
if it is using feedstocks for repowering that are feed grain 
commodities that received benefits under Title I of the Food, 
Conservation, and Energy Act of 2008.
    C. Other eligibility requirements.
    Multiple submissions. Corporations and entities with more than one 
biorefinery can submit an application for only one of their 
biorefineries. However, if a corporation or entity has multiple 
biorefineries located at the same location, the entity may submit an 
application that covers such biorefineries provided the heat and power 
used in the multiple biorefineries are centrally produced.
    Cost Effectiveness. To be eligible, the project must have a simple 
payback period of no more than 10 years (i.e., must be awarded at least 
5 points for cost-effectiveness under 7 CFR 4288.21(b)(1)).
    Percentage of reduction of fossil fuel use. To be eligible, the 
applicant must demonstrate that the repowering project has an 
anticipated annual reduction in fossil fuel use of at least 40 percent 
(i.e., the application must be awarded at least 5 points for percentage 
of reduction of fossil fuel use under 7 CFR 4288.21(b)(2)).
    Full project financing. The applicant must demonstrate that it has 
sufficient funds or has obtained commitments for sufficient funds to 
complete the repowering project taking into account the amount of the 
payment request in the application.

IV. Fiscal Year 2011 Application and Submission Information

    A. To request applications. Application materials, including 
application forms, regulations, instructions, and other materials 
related to this program, are available from the USDA Rural Development 
State Office, Renewable Energy Coordinator and the USDA Rural 
Development Web site at https://www.rurdev.usda.gov/BCP_
RepoweringAssistance.html.
    B. Content and form of submission. Applicants must submit a signed 
original and one copy of an application containing all the information 
specified in 7 CFR 4288.20(b) and (c).
    C. Submission dates and times. Applications to participate in this 
program for Fiscal Year 2011 must be submitted between March 11, 2011 
and June 9, 2011. Applications received after 4:30 pm June 9, 2011, 
regardless of their postmark, will not be considered by the Agency for 
Fiscal Year 2011 payments.
    D. Payment provisions. Fiscal Year 2011 payments will be made 
according to the provisions specified in 7 CFR 4288.13(b) and (c) and 
in 7 CFR 4288.24.

V. Application Review and Selection Information

    The Agency will evaluate projects based on the cost, cost-
effectiveness, and capacity of projects to reduce fossil fuels. The 
cost of the project will be taken into consideration in the context of 
each project's ability to economically produce energy from renewable 
biomass to replace its dependence on fossil fuels. Projects with higher 
costs that are less efficient will not score well. The scoring criteria 
are designed to evaluate projects on simple payback as well as the 
percentage of fossil fuel reduction.
    A. Review. The Agency will review applications submitted under this 
Notice in accordance with 7 CFR 4288.21(a).
    B. Scoring. The Agency will score applications submitted under this 
Notice in accordance with 7 CFR 4288.21(b).
    C. Ranking and selecting applications. All scored applications will 
be ranked by the Agency as soon after June 9, 2011 as possible. The 
Agency will consider the score an application has received compared to 
the scores of other applications in the priority list, with higher 
scoring applications receiving first consideration for payments. Using 
the application scoring criteria point values specified in 7 CFR 
4288.21, the Agency will select applications for payments.
    D. Availability of funds. As applications are funded, if 
insufficient funds remain to pay the next highest scoring application, 
the Agency may elect to pay a lower scoring application. Before this 
occurs, the Agency will provide the applicant of the higher scoring 
application the opportunity to reduce the amount of its payment request 
to the amount of funds available. If the applicant agrees to lower its 
payment request, it must certify that the purposes of the project can 
be met, and the Agency must determine the project is feasible at the 
lower amount.

VI. Administration Information

    A. Notice of eligibility. The provisions of 7 CFR 4288.23 apply to 
this Notice. These provisions include notifying an applicant determined 
to be eligible for participation and notifying an applicant

[[Page 13351]]

determined to be ineligible, including their application score and 
ranking and the score necessary to qualify for payments.
    B. Administrative and National Policy requirements.
    (1) Review or appeal rights. A person may seek a review of an 
Agency decision or appeal to the National Appeals Division as provided 
in 7 CFR 4288.3.
    (2) Compliance with other laws and regulations. The provisions of 7 
CFR 4288.4 apply to this Notice, which includes requiring participating 
biorefineries to be in compliance with other applicable Federal, State, 
and local laws.
    (3) Oversight and monitoring. The provisions of 7 CFR 4288.5(a) and 
(b) apply to this Notice, which includes the right of the Agency to 
verify all payment applications and subsequent payments and the 
requirement that each biorefinery must make available, at one place at 
all reasonable times for examination by the Agency, all books, 
documents, papers, receipts, payroll records, and bills of sale 
adequate to identify the purposes for which, and the manner in which, 
funds were expended for all eligible project costs for a period of not 
less than 3 years from the final payment date.
    (4) Reporting. Upon completion of the repowering project funded 
under this Notice, the biorefinery must submit a report, in accordance 
with 7 CFR 4288.5(c), to the Agency annually for the first 3 years 
after completion of the project. The reports are to be submitted as of 
October 1 of each year.
    (5) Exception authority. The provisions of 7 CFR 4288.7 apply to 
this Notice.
    (6) Succession and control of facilities and production. The 
provisions of 7 CFR 4288.25 apply to this Notice.
    C. Environmental review. All recipients under this Notice are 
subject to the requirements of 7 CFR Part 1940, subpart G.
    D. Fiscal Year 2009 and Fiscal Year 2010 applications. Any entity 
that submitted to the Agency an application for payment under this 
program prior to the effective date of 7 CFR 4288, subpart A, will have 
their payments made and serviced in accordance with the provisions 
specified in 7 CFR 4288, subpart A.

VII. Agency Contacts

    For further information about this Notice, please contact Fred 
Petok, USDA, Rural Development, Business Programs Energy Division, 1400 
Independence Avenue, SW., Room 6870, STOP 3225, Washington, DC 20250-
3225. Telephone: 202-720-1400. E-mail: frederick.petok@wdc.usda.gov.

VIII. Nondiscrimination Statement

    USDA prohibits discrimination in all its programs and activities on 
the basis of race, color, national origin, age, disability, and where 
applicable, sex, marital status, familial status, parental status, 
religion, sexual orientation, genetic information, political beliefs, 
reprisal, or because all or part of an individual's income is derived 
from any public assistance program. (Not all prohibited bases apply to 
all programs.) Persons with disabilities who require alternative means 
for communication of program information (Braille, large print, 
audiotape, etc.) should contact USDA's TARGET Center at (202) 720-2600 
(voice and TDD).
    To file a complaint of discrimination write to USDA, Director, 
Office of Adjudication and Compliance, 1400 Independence Avenue SW., 
Washington, DC 20250-9410 or call (800) 795-3272 (voice) or (202) 720-
6382 (TDD). USDA is an equal opportunity provider, employer, and 
lender.

    Dated: March 7, 2011.
Cheryl L. Cook,
Acting Under Secretary, Rural Development.
[FR Doc. 2011-5574 Filed 3-10-11; 8:45 am]
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