Notice of Solicitation of Applications for the Rural Energy for America Program for Fiscal Year 2016, 60349-60355 [2015-25321]

Agencies

• DEPARTMENT OF AGRICULTURE
• Rural Business-Cooperative Service

[Federal Register Volume 80, Number 193 (Tuesday, October 6, 2015)]
[Notices]
[Pages 60349-60355]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-25321]


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DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service


Notice of Solicitation of Applications for the Rural Energy for 
America Program for Fiscal Year 2016

AGENCY: Rural Business-Cooperative Service, USDA.

ACTION: Notice.

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SUMMARY: The Rural Business-Cooperative Service (the Agency) announces 
the acceptance of applications under the Rural Energy for America 
Program (REAP) which is designed to help agricultural producers and 
rural small businesses reduce energy costs and consumption and help 
meet the Nation's critical energy needs. REAP have two types of funding 
assistance: (1) Renewable Energy Systems and Energy Efficiency 
Improvements Assistance, and (2)

[[Page 60350]]

Energy Audit and Renewable Energy Development Assistance Grants.
    The Renewable Energy Systems and Energy Efficiency Improvement 
Assistance provides grants and guaranteed loans to agricultural 
producers and rural small businesses to purchase and install renewable 
energy systems and make energy efficiency improvements to their 
operations. Eligible renewable energy systems for REAP provide energy 
from: Wind, solar, renewable biomass (including anaerobic digesters), 
small hydro-electric, ocean, geothermal, or hydrogen derived from these 
renewable resources.
    The Energy Audit and Renewable Energy Development Assistance Grant 
is available to a unit of State, Tribal, or local government; 
instrumentality of a State, Tribal, or local government; institution of 
higher education; rural electric cooperative; a public power entity; or 
a council, as defined in 16 U.S.C. 3451. The recipient of grant funds, 
grantee, will establish a program to assist agricultural producers and 
rural small businesses with evaluating the energy efficiency and the 
potential to incorporate renewable energy technologies into their 
operations.

DATES: Grant applications, guaranteed loan-only applications, and 
combined grant and guaranteed loan applications for financial 
assistance under this subpart may be submitted at any time on an 
ongoing basis. Section IV.E. of this Notice establishes the deadline 
dates for the applications to be received in order to be considered for 
funding provided by the Agricultural Act of 2014 (Pub. L. 113-79), 
commonly referred to as the 2014 Farm Bill Act, for fiscal year 2016.

FOR FURTHER INFORMATION CONTACT: The applicable USDA Rural Development 
Energy Coordinator for your respective State, as identified via the 
following link: https://www.rd.usda.gov/files/RBS_StateEnergyCoordinators.pdf.
    For information about this Notice, please contact Kelley Oehler, 
Branch Chief, USDA Rural Development, Energy Division, 1400 
Independence Avenue SW., Stop 3225, Room 6870, Washington, DC 20250. 
Telephone: (202) 720-6819. Email: kelley.oehler@wdc.usda.gov.

SUPPLEMENTARY INFORMATION: Eligible Applicants: This solicitation is 
for agricultural producers and rural small businesses, as well as units 
of State, Tribal, or local government; instrumentalities of a State, 
Tribal, or local government; institutions of higher education; rural 
electric cooperatives; public power entities; and councils, as defined 
in 16 U.S.C. 3451, which serve agricultural producers and rural small 
businesses.

I. Program Description

    REAP is designed to help agricultural producers and rural small 
businesses reduce energy costs and consumption and help meet the 
Nation's critical energy needs. REAP has two types of funding 
assistance: (1) Renewable Energy Systems and Energy Efficiency 
Improvements Assistance and (2) Energy Audit and Renewable Energy 
Development Assistance Grants.
    A. General. Applications for REAP can be submitted on an ongoing 
basis. This Notice announces the deadline times and dates to submit 
applications for the REAP funds provided by the Agricultural Act of 
2014, on February 7, 2014 (2014 Farm Bill), for fiscal year 2016 for 
grants, guaranteed loans, and combined grants and guaranteed loans to 
purchase and install renewable energy systems, and make energy 
efficiency improvements; and for grants to conduct energy audits and 
renewable energy development assistance.
    The Renewable Energy Systems and Energy Efficiency Improvement 
Assistance provides grants and guaranteed loans to agricultural 
producers and rural small businesses to purchase and install renewable 
energy systems and make energy efficiency improvements to their 
operations. Eligible renewable energy systems for REAP provide energy 
from wind, solar, renewable biomass (including anaerobic digesters), 
small hydro-electric, ocean, geothermal, or hydrogen derived from these 
renewable resources.
    The Energy Audit and Renewable Energy Development Assistance Grant 
is available to a unit of State, Tribal, or local government; 
instrumentality of a State, Tribal, or local government; institution of 
higher education; rural electric cooperative; a public power entity; or 
a council, as defined in 16 U.S.C. 3451. The recipient of grant funds, 
(grantee), will establish a program to assist agricultural producers 
and rural small businesses with evaluating the energy efficiency and 
the potential to incorporate renewable energy technologies into their 
operations.
    The administrative requirements applicable to each type of funding 
available under REAP are described in 7 CFR, part 4280, subpart B. The 
provisions specified in 7 CFR 4280.101 through 4280.111 apply to each 
funding type described in this Notice.
    B. Renewable Energy System and Energy Efficiency Improvement 
Project Grants. In addition to the other provisions of this Notice, the 
requirements specified in 7 CFR 4280.112 through 4280.124 apply to 
renewable energy system and energy efficiency improvement project 
grants.
    C. Renewable Energy System and Energy Efficiency Improvement 
Project Guaranteed Loans. In addition to the other provisions of this 
Notice, the requirements specified in 7 CFR 4280.125 through 4280.152 
apply to guaranteed loans for renewable energy system and energy 
efficiency improvement projects. For fiscal year 2016, the guarantee 
fee amount is one percent of the guaranteed portion of the loan, and 
the annual renewal fee is one-quarter of 1 percent (0.250 percent) of 
the guaranteed portion of the loan.
    D. Renewable Energy System and Energy Efficiency Improvement 
Project Combined Grant and Guaranteed Loan Requests. In addition to the 
other provisions of this Notice, the requirements specified in 7 CFR 
4280.165 apply to a combined grant and guaranteed loan for renewable 
energy system and energy efficiency improvement projects.
    E. Energy Audit and Renewable Energy Development Assistance Grants. 
In addition to the other provisions of this Notice, the requirements 
specified in 7 CFR 4280.186 through 4280.196 apply to energy audit and 
renewable energy development assistance grants.

II. Federal Award Information

    A. Statutory Authority. This program is authorized under 7 U.S.C. 
8107.
    B. Catalog of Federal Domestic Assistance (CFDA) Number. 10.868.
    C. Funds Available. This Notice is announcing deadline times and 
dates for applications to be submitted for the REAP funds provided by 
the 2014 Farm Bill for fiscal year 2016. This Notice is being published 
prior to the congressional enactment of a full-year appropriation for 
fiscal year 2016. The Agency will continue to process applications 
received under this announcement and should REAP receive appropriated 
funds, these funds will be announced on the following Web site: 
www.rd.usda.gov/newsroom/notices-solicitation-applications-nosas and 
subject to the same provisions in this Notice.
    (1) Renewable energy system and energy efficiency improvement 
grant-only funds. For renewable energy system and energy efficiency 
improvement projects only, there will be an allocation of grant funds 
to each Rural Development State Office. The State allocations will 
include an allocation for grants of $20,000 or less funds and an 
allocation of grant funds that can be used to fund renewable

[[Page 60351]]

energy system and energy efficiency improvement grants of either 
$20,000 or less or grants of more than $20,000, as well as the grant 
portion of a combination grant and guaranteed loan. These funds are 
commonly referred to as unrestricted grant funds. The funds for grants 
of $20,000 or less can only be used to fund grants requesting $20,000 
or less.
    (a) To ensure that small projects have a fair opportunity to 
compete for the funding and are consistent with the priorities set 
forth in the statute, the Agency will set-aside 20 percent of the 
fiscal year 2016 funds until June 30, 2016, to fund grants of $20,000 
or less.
    (b) Grant funds available for renewable energy system and energy 
efficiency improvement will consist of fiscal year 2016 funds and any 
unused mandatory funding from fiscal year 2015.
    (2) Renewable energy system and energy efficiency improvement loan 
guarantee funds. Rural Development's National Office will maintain a 
reserve of guaranteed loan funds. The amount of loan guarantee program 
level available will consist of fiscal year 2016 funds.
    (3) Renewable energy system and energy efficiency improvement 
guaranteed loan and grant combination funds. The amount of funds 
available for guaranteed loan and grant combination applications are 
outlined in paragraphs C(b)(1) and C(2) of this section.
    (4) Energy audit and renewable energy development assistance grant 
funds. The amount of funds available for energy audits and renewable 
energy development assistance in fiscal year 2016 will be 4 percent of 
fiscal year 2016 mandatory funds. Obligations of these funds will take 
place through March 31, 2016. Any unobligated balances will be moved to 
the renewable energy subsidy account as of April 1, 2016. These funds 
may be utilized in any of the renewable energy system and energy 
efficiency improvement national competitions.
    D. Approximate Number of Awards. The estimated number of awards is 
1,000 based on the historical average grant size and the anticipated 
mandatory funding of $50 million for fiscal year 2016, but will depend 
on the actual amount of funds made available and on the number of 
eligible applicants participating in this program.
    E. Type of Instrument. Grant, guaranteed loan, and grant/guaranteed 
loan combinations.

III. Eligibility Information

    A. Eligible Applicants. To be eligible for the grant portion of the 
program, an applicant must meet the requirements specified in 7 CFR 
4280.109, 7 CFR 4280.110, and 7 CFR 4280.112, or 7 CFR 4280.186, as 
applicable.
    B. Eligible Lenders and Borrowers. To be eligible for the 
guaranteed portion of the program, lenders and borrowers must meet the 
eligibility requirements in 7 CFR 4280.125 and 7 CFR 4280.127, as 
applicable.
    C. Eligible Projects. To be eligible for this program, a project 
must meet the eligibility requirements specified in 7 CFR 4280.113, 7 
CFR 4280.128, and 7 CFR 4280.187, as applicable.
    D. Cost Sharing or Matching. The 2014 Farm Bill mandates the 
maximum percentages of funding that REAP can provide.
    (1) Renewable energy system and energy efficiency improvement 
funding approved for guaranteed loan-only requests and for combination 
guaranteed loan and grant requests will not exceed 75 percent of 
eligible project costs, with any Federal grant portion not to exceed 25 
percent of the total eligible project costs, whether the grant is part 
of a combination request or is a grant-only.
    (2) Under the energy audit and renewable energy development 
assistance grants, a grantee that conducts energy audits must require 
that, as a condition of providing the energy audit, the agricultural 
producer or rural small business pay at least 25 percent of the cost of 
the energy audit.
    E. Other. The definitions applicable to this Notice are published 
at 7 CFR 4280.103. Ineligible project costs can be found in 7 CFR 
4280.114(d), 7 CFR 4280.129(f), and 7 CFR 4280.188(c), as applicable.

IV. Application and Submission Information

    A. Address to Request Application. Application materials may be 
obtained by contacting one of Rural Development's Energy Coordinators, 
as identified via the following link: https://www.rd.usda.gov/files/RBS_StateEnergyCoordinators.pdf.
    In addition, for grant applications, applicants may obtain 
electronic grant applications for REAP from https://www.Grants.gov. When 
you enter the Grants.gov site, you will find information about 
submitting an application electronically through the site. To use 
Grants.gov, all applicants must have a DUNS number, which can be 
obtained at no cost via a toll-free request line at (866) 705-5711 or 
online at https://fedgov.dnb.com/webform. USDA Rural Development 
strongly recommends that applicants do not wait until the application 
deadline date to begin the application process through Grants.gov.
    B. Application Submittal.
    (1) Grant applications. All grant applications may be submitted 
either as hard copy to the appropriate Rural Development Energy 
Coordinator or electronically using the Government-wide Grants.gov Web 
site. When submitting an application as hard copy, applicants must 
submit one original.
    (a) All renewable energy system and energy efficiency improvement 
applications are to be submitted to the USDA Rural Development Energy 
Coordinator in the State in which the applicant's proposed project is 
located. A list of USDA Rural Development Energy Coordinators is 
available via the following link: https://www.rd.usda.gov/files/RBS_StateEnergyCoordinators.pdf.
    (b) All energy audit and renewable energy development assistance 
applications are to be submitted to the USDA Rural Development Energy 
Coordinator in the State in which the applicant is headquartered.
    (c) Grant-only applicants submitting their electronic applications 
to the Agency via the Grants.gov Web site may download a copy of the 
application package to complete it off line and then upload and submit 
the application via the Grants.gov site, including all information 
typically included in the application, and all necessary assurances and 
certifications. After electronically submitting an application through 
the Web site, the applicant will receive an automated acknowledgement 
from Grants.gov that contains a Grants.gov tracking number.
    (2) Guaranteed loan applications. Guaranteed loan-only applications 
(i.e., those that are not part of a guaranteed loan/grant combination 
request) must be submitted as hard copy to the appropriate Rural 
Development Energy Coordinator.
    (3) Guaranteed loan and grant combination applications. 
Applications for guaranteed loans/grants (combination applications) 
must be submitted as hard copy to the appropriate Rural Development 
Energy Coordinator.
    C. Content and Form of Application Submission. Applicants seeking 
to participate in this program must submit applications in accordance 
with this Notice and 7 CFR part 4280, subpart B. Applicants must submit 
complete applications 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.

[[Page 60352]]

    (1) Competition. The application dates published in Section IV.E. 
of this Notice identify the times and dates by which complete 
applications must be received in order to compete for the funds 
available.
    (2) Grant applications. Information required for an application to 
be considered complete is found in 7 CFR part 4280, subpart B.
    (a) Grant applications for renewable energy systems and energy 
efficiency improvement projects with total project costs of $80,000 or 
less must provide information required by 7 CFR 4280.119.
    (b) Grant applications for renewable energy systems and energy 
efficiency improvement projects with total project costs of $200,000 or 
less, but more than $80,000, must provide information required by 7 CFR 
4280.118.
    (c) Grant applications for renewable energy systems and energy 
efficiency improvement projects with total project costs of greater 
than $200,000 must provide information required by 7 CFR 4280.117.
    (d) Guaranteed loan applications for renewable energy systems and 
energy efficiency improvement projects must provide information 
required by 7 CFR 4280.137.
    (e) Combined grant and guaranteed loan applications for renewable 
energy systems and energy efficiency improvement projects must provide 
information required by 7 CFR 4280.165(c).
    (f) Applications for energy audits or renewable energy development 
assistance grants must provide information required by 7 CFR 4280.190.
    (3) 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 
applications, but are not required to do so. An applicant's eligibility 
or the likelihood of receiving an award will not be impacted by 
furnishing or not furnishing this information.
    (4) Hybrid projects. If the application is for a hybrid project, as 
defined in 7 CFR 4280.103, technical reports, as required under 7 CFR 
4280.110(h)(3), must be prepared for each technology that comprises the 
hybrid project.
    (5) Multiple facilities. Applicants may submit a single application 
that proposes to apply the same renewable energy system (including the 
same hybrid project) or energy efficiency improvement across multiple 
facilities. For example, a rural small business owner owns five retail 
stores and wishes to install solar panels on each store. The rural 
small business owner may submit a single application for installing the 
solar panels on the five stores. However, if this same owner wishes to 
install solar panels on three of the five stores and wind turbines for 
the other two stores, the owner can only submit an application for 
either the solar panels or for the wind turbines in the same fiscal 
year.
    (6) Fiscal Year 2015 Renewable Energy System and Energy Efficiency 
Improvement Grant Applications for $20,000 or less. If an application 
for a project was submitted after April 30, 2015, for the first time 
for fiscal year 2015 funding and that initial application was 
determined eligible but was not funded in either the State or National 
unrestricted competitions, the Agency will consider that application 
for funding in the November 2, 2015, and May 2, 2016, State 
competitions for grants of $20,000 or less and the National competition 
for grants of $20,000 or less in fiscal year 2016. If an applicant 
submitted the initial application on or prior to April 30, 2015, the 
applicant must submit a new application, meeting the requirements of 
this Notice in order to be considered for fiscal year 2016 funds for 
that project, and a new submission date of record will be established.
    D. System for Award Management (SAM) and Dun and Bradstreet 
Universal Number System (DUNS) Number. Unless exempt under 2 CFR 
25.110, all applicants must:
    (1) Be registered in SAM prior to submitting an application;
    (2) Maintain an active SAM registration with current information at 
all times during which it has an active Federal award or an application 
under consideration by the Agency; and
    (3) Provide its DUNS number in each application it submits to the 
Agency.
    (4) At the time the Agency is ready to make an award, if the 
applicant has not complied with paragraphs A(1) through A(3) of this 
section, the Agency may determine the applicant is not eligible to 
receive the award.
    E. Submission Dates and Times. Grant applications, guaranteed loan-
only applications, and combined grant and guaranteed loan applications 
for financial assistance under this subpart may be submitted at any 
time on an ongoing basis. When an application window closes, the next 
application window opens on the following day. This Notice establishes 
the deadline dates for the applications to be received in order to be 
considered for funding provided by the 2014 Farm Bill for fiscal year 
2016. An application received after these dates will be considered with 
other applications received in the next application window. In order to 
be considered for funds under this Notice, complete applications must 
be received by the appropriate USDA Rural Development State Office or 
via Grants.gov. The deadline for applications to be received to be 
considered for funding in fiscal year 2016 are outlined in the 
following paragraphs and also summarized in a table at the end of this 
section:
    (1) Renewable energy system and energy efficiency improvement grant 
applications and combination grant and guaranteed loan applications. 
Application deadlines for fiscal years 2016 grant funds are:
    (a) For applicants requesting $20,000 or less that wish to have 
their application compete for the ``Grants of $20,000 or less set 
aside,'' complete applications must be received no later than:
    (i) 4:30 p.m. local time on November 2, 2015, or
    (ii) 4:30 p.m. local time on May 2, 2016.
    (b) For applicants requesting grant funds of over $20,000 
(unrestricted) or funding for a combination grant and guaranteed loan, 
complete applications must be received no later than 4:30 p.m. local 
time on May 2, 2016.
    (2) Renewable energy system and energy efficiency improvement 
guaranteed loan-only applications. Applications will be reviewed and 
processed when received with monthly competitions on the first business 
day of each month for those applications eligible and ready to be 
funded.
    (3) Energy audits and renewable energy development assistance grant 
applications. Complete applications must be received no later than 4:30 
p.m. local time on February 1, 2016.

[[Page 60353]]



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           Application               Application  window  opening  dates    Application  window  closing  dates
----------------------------------------------------------------------------------------------------------------
Renewable Energy Systems and       July 1, 2015..........................  November 2, 2015.
 Energy Efficiency Improvement
 Grants ($20,000 or less
 competing for up to 50 percent
 of the set aside funds).
Renewable Energy Systems and       November 3, 2015......................  May 2, 2016.*
 Energy Efficiency Improvement
 Grants ($20,000 or less
 competing for the remaining set
 aside funds).
Renewable Energy Systems and       July 1, 2015..........................  May 2, 2016.*
 Energy Efficiency Improvement
 Grants (Unrestricted grants,
 including combination grant and
 guaranteed loan).
Renewable Energy Systems and       Continuous application cycle..........  Continuous application cycle.
 Energy Efficiency Improvement
 Guaranteed Loans.
Energy Audit and Renewable Energy  February 13, 2015.....................  February 1, 2016.*
 Development Assistance Grants.
----------------------------------------------------------------------------------------------------------------
* Applications received after this date will be considered for the next funding cycle in the subsequent fiscal
  year.

    F. Intergovernmental Review. REAP is not subject to Executive Order 
12372, Intergovernmental Review of Federal Programs.
    G. Funding Limitations. The following funding limitations apply to 
applications submitted under this Notice.
    (1) Renewable energy system and energy efficiency improvement 
projects.
    (a) Applicants may apply for only one renewable energy system 
project and one energy efficiency improvement project in fiscal year 
2016.
    (b) For renewable energy system grants, the minimum grant is $2,500 
and the maximum is $500,000. For energy efficiency improvement grants, 
the minimum grant is $1,500 and the maximum grant is $250,000.
    (c) For renewable energy system and energy efficiency improvement 
loan guarantees, 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.
    (d) Renewable energy system and energy efficiency improvement 
guaranteed loan and grant combination applications. Paragraphs (b) and 
(c) of this section contain the applicable maximum amounts and minimum 
amounts for grants and guaranteed loans.
    (2) Energy audit and renewable energy development assistance 
grants.
    (a) Applicants may submit only one energy audit grant application 
and one renewable energy development assistance grant application for 
fiscal year 2016 funds.
    (b) The maximum aggregate amount of energy audit and renewable 
energy development assistance grants awarded to any one recipient under 
this Notice cannot exceed $100,000 for fiscal year 2016.
    (c) The 2014 Farm Bill mandates that the recipient of a grant that 
conducts an energy audit for an agricultural producer or a rural small 
business must require the agricultural producer or rural small business 
to pay at least 25 percent of the cost of the energy audit, which shall 
be retained by the eligible entity for the cost of the audit.
    (3) Maximum grant assistance to an entity. For the purposes of this 
Notice, the maximum amount of grant assistance to an entity will not 
exceed $750,000 for fiscal year 2016 based on the total amount of the 
renewable energy system, energy efficiency improvement, energy audit, 
and renewable energy development assistance grants awarded to an entity 
under REAP.
    H. Other submission requirements and information.
    (1) Environmental information. For the Agency to consider an 
application, the application must include all environmental review 
documents with supporting documentation in accordance with 7 CFR part 
1940, subpart G. Applications for financial assistance for planning or 
management purposes are typically categorically excluded from the 
environmental review process by 7 CFR 1940.310(e)(1). Any required 
environmental review must be completed prior to obligation of funds or 
the approval of the application. Applicants are advised to contact the 
Agency to determine environmental requirements as soon as practicable 
to ensure adequate review time.
    (2) Felony conviction and tax delinquent status. Corporate 
applicants submitting applications under this Notice must include Form 
AD 3030, ``Representations Regarding Felony Conviction and Tax 
Delinquent Status for Corporate Applicants.'' Corporate applicants who 
receive an award under this Notice will be required to sign Form AD 
3031, ``Assurance Regarding Felony Conviction or Tax Delinquent Status 
for Corporate Applicants.'' Both forms can be found online at https://www.ocio.usda.gov/document/ad3030; and https://www.ocio.usda.gov/document/ad3031.
    (3) Original signatures. USDA Rural Development may request that 
the applicant provide original signatures on forms submitted through 
Grants.gov at a later date.
    (4) Transparency Act Reporting. All recipients of Federal financial 
assistance are required to report information about first-tier sub-
awards and executive compensation in accordance with 2 CFR part 170. So 
long as an entity applicant does not have an exception under 2 CFR 
170.110(b), the applicant must have the necessary processes and systems 
in place to comply with the reporting requirements should the applicant 
receive funding. See 2 CFR 170.200(b).

V. Application Review Information

    A. Evaluation Criteria. All complete applications will be scored in 
accordance with 7 CFR 4280.120, 4280.135, and 4280.192 and as 
supplemented below.
    (1) For fiscal year 2016, if the State Director and Administrator 
consider awarding priority points under 7 CFR 4280.120(g), the State 
Director and the Administrator will take into consideration paragraphs 
V.A(1)(a) and (b) below.
    (a) With regard to 7 CFR 4280.120(g)(3), which addresses applicants 
who are members of unserved and under-served populations, a project 
that is:
    (i) 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 applications to indicate that owners of the project 
have veteran status; and
    (ii) 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

[[Page 60354]]

the project are members of a socially-disadvantaged group.
    (b) With regard to 7 CFR 4280.120(g)(4), which addresses 
applications that further a Presidential initiative or a Secretary of 
Agriculture priority, projects:
    (i) Located in rural areas with the lowest incomes where, according 
to the most recent 5-year American Community Survey data by census, 
tracts show that at least 20 percent of the population is living in 
poverty. This will support Secretary of Agriculture's priority of 
providing 20 percent of its funding by 2016 to these areas of need and
    (ii) Located in designated Strike Force or Promise Zone areas, 
which is a Secretary of Agriculture's priority.
    (2) Combined grant and guaranteed loan applications will be scored 
in accordance with 7 CFR 4280.120.
    (3) For hybrid applications, each technical report will be 
evaluated based on its own merit.
    B. Review and Selection Process. Grant-only applications, 
guaranteed loan-only applications, and combined grant and guaranteed 
loan applications for financial assistance may be submitted at any 
time. In order to be considered for funds, complete applications must 
be received by the appropriate USDA Rural Development State Office or 
via Grants.gov, as identified in Section IV.E., of this Notice.
    (1) Renewable energy system and energy efficiency improvement 
grants. Due to the competitive nature of this program, applications are 
competed based on submittal date. The submittal date is the date the 
Agency receives a complete application. 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.
    (a) Renewable energy system and energy efficiency improvement 
grants of $20,000 or less State funds. Funds will be allocated to the 
States. Applications must be submitted by November 2, 2015, or May 2, 
2016, in order to be considered for these set-aside funds. The State 
will award 50 percent of these funds for those complete applications 
the Agency receives by November 2, 2015, and 50 percent of the funds 
for those complete applications the Agency receives by May 2, 2016. All 
State allocated unused funds for grants of $20,000 or less will be 
pooled to the National Office.
    (b) Renewable energy system and energy efficiency improvement 
grants of $20,000 or less national funds. All unfunded eligible 
applications for grants of $20,000 or less received by May 2, 2016, 
will be competed against other applications for grants of $20,000 or 
less from other States at a final national competition. Obligations of 
these funds will take place prior to June 30, 2016.
    (c) Renewable energy system and energy efficiency improvement 
unrestricted grant State funds. Renewable energy system and energy 
efficiency improvement grant funds that can be awarded to any renewable 
energy system or energy efficiency improvement application, regardless 
of the amount of the funding request, will be allocated to the States. 
All unused funds for grant funds will be pooled to the National Office.
    (d) Renewable energy system and energy efficiency improvement 
national grant funds. All unfunded eligible applications for grants, 
which include grants of $20,000 or less, that are received by May 2, 
2016, and that are not funded by State allocations can be submitted to 
the National Office to compete against grant applications from other 
States at a final national competition.
    (2) Renewable energy system and energy efficiency improvement 
guaranteed loan funds. The National Office will maintain a reserve for 
renewable energy system and energy efficiency improvement guaranteed 
loan funds. Applications will be reviewed and processed when received. 
Those applications that meet the Agency's underwriting requirements, 
are credit worthy, and score a minimum of 50 points will compete in 
national competitions for guaranteed loan funds on the first business 
day of each month. All unfunded eligible guaranteed loan-only 
applications received that do not score at least 50 points will be 
competed against other guaranteed loan-only applications from other 
States at a final national competition, if the guaranteed loan reserves 
have not been completely depleted, on September 1, 2016. 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.
    (3) Combined grant and guaranteed loan applications. Renewable 
energy system and energy efficiency improvement combined grant and 
guaranteed loan applications will compete with grant-only applications 
for grant funds allocated to their State referenced in paragraph 
B(1)(c) of this section. If the application is ranked high enough to 
receive State allocated grant funds, the State will request funding for 
the guaranteed loan portion of any combined grant and guaranteed loan 
applications from the National Office guaranteed loan reserve, and no 
further competition will be required.
    (4) Energy audit and renewable energy development assistance 
grants. Energy audit and renewable energy development assistance grant 
funds will be maintained in a reserve at the National Office. The two 
highest scoring applications from each State, based on the scoring 
criteria established under Sec.  4280.192, will compete for funding at 
a national competition. If funds remain after the energy audit and 
renewable energy development assistance national competition, the 
Agency may elect to transfer budget authority to fund additional 
renewable energy system and energy efficiency improvement grants from 
the National Office reserve after pooling.
    (5) Insufficient funds. If a State allocation is not sufficient to 
fund the total amount of a grant or combination application, the 
applicant must be notified that they may accept the remaining funds or 
submit the total request for National Office reserve funds available 
after pooling. If the applicant agrees to lower its grant request, the 
applicant must certify that the purposes of the project will be met and 
provide the remaining total funds needed to complete the project.
    (a) If two or more grant or combination applications have the same 
score and remaining funds in the State allocation are insufficient to 
fully award them, the remaining funds must be divided proportionally 
between the applications. The Agency will notify the applicants that 
they may either accept the proportional amount of funds or submit their 
total request for National Office reserve. If the applicant agrees to 
lower its grant request, the applicant must certify that the purposes 
of the project will be met and provide the remaining total funds needed 
to complete the project.
    (b) At its discretion, the Agency may instead allow the remaining 
funds to be carried over to the next fiscal year rather than selecting 
a lower scoring application(s) or distributing funds on a pro-rata 
basis.
    C. Award Considerations. All awards will be on a discretionary 
basis. In determining the amount of a renewable energy system or energy 
efficiency improvement grant or loan guarantee, the Agency will 
consider the six criteria specified in 7 CFR 4280.114(e) or 7 CFR 
4280.129(g), as applicable.
    D. Anticipated Announcement and Federal Award Dates. All awards 
should be completed by September 30, 2016.

[[Page 60355]]

VI. Federal Award Administration Information

    A. Federal Award Notices. The Agency will award and administer 
renewable energy system and energy efficiency improvement grants, 
guaranteed loans in accordance with 7 CFR 4280.122, and 7 CFR 4280.139, 
as applicable. The Agency will award and administer the energy audit 
and renewable energy development assistance grants in accordance with 7 
CFR 4280.195. Notification requirements of 7 CFR 4280.111, apply to 
this Notice.
    B. Administrative and National Policy Requirements.
    (1) Equal Opportunity and Nondiscrimination. The Agency will ensure 
that equal opportunity and nondiscrimination requirements are met in 
accordance with the Equal Credit Opportunity Act, 15 U.S.C. 1691 et 
seq. and 7 CFR part 15d, Nondiscrimination in Programs and Activities 
Conducted by the U.S. Department of Agriculture. The Agency will not 
discriminate against applicants on the basis of race, color, religion, 
national origin, sex, marital status, or age (provided that the 
applicant has the capacity to contract); because all or part of the 
applicant's income derives from any public assistance program; or 
because the applicant has in good faith exercised any right under the 
Consumer Credit Protection Act, 15 U.S.C. 1601 et seq.
    (2) Civil Rights Compliance. Recipients of grants must comply with 
the Americans with Disabilities Act of 1990, 42 U.S.C. 12101 et seq., 
Title VI of the Civil Rights Act of 1964, 42 U.S.C. 2000d et seq., and 
Section 504 of the Rehabilitation Act of 1973, 29 U.S.C. 794. This may 
include collection and maintenance of data on the race, sex, and 
national origin of the recipient's membership/ownership and employees. 
These data must be available to conduct compliance reviews in 
accordance with 7 CFR 1901.204.
    (3) Environmental Analysis. 7 CFR part 1940, subpart G, or 
successor regulation outlines environmental procedures and requirements 
for this subpart. Prospective applicants are advised to contact the 
Agency to determine environmental requirements as soon as practicable 
after they decide to pursue any form of financial assistance directly 
or indirectly available through the Agency.
    (4) Appeals. A person may seek a review of an Agency decision or 
appeal to the National Appeals Division in accordance with 7 CFR 
4280.105.
    C. Reporting.
    Reporting requirements will be in accordance with the Grant 
Agreement, 7 CFR 4280.123(j), 7 CFR 4280.143, and 7 CFR 4280.196, as 
applicable. Any question on reporting can be directed to the 
appropriate Rural Development Energy Coordinator as identified in the 
``For Further Information Contact'' section of this notice.

VII. Other Information

A. Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995, the 
information collection requirements associated with renewable energy 
system and energy efficiency improvement grants and guaranteed loans, 
as covered in this Notice, have been approved by the Office of 
Management and Budget (OMB) under OMB Control Number 0570-0050. The 
information collection requirements associated with energy audit and 
renewable energy development assistance grants have also been approved 
by OMB under OMB Control Number 0570-0059.

B. Nondiscrimination Statement

    The U.S. Department of Agriculture (USDA) prohibits discrimination 
against its customers, employees, and applicants for employment on the 
basis of race, color, national origin, age, disability, sex, gender 
identity, religion, reprisal and where applicable, political beliefs, 
marital status, familial or parental status, religion, sexual 
orientation, or all or part of an individual's income is derived from 
any public assistance program, or protected genetic information in 
employment or in any program or activity conducted or funded by the 
Department. (Not all prohibited bases will apply to all programs and/or 
employment activities.)
    If you wish to file a Civil Rights program complaint of 
discrimination, complete the USDA Program Discrimination Complaint Form 
(PDF), found online at https://www.ascr.usda.gov/complaint_filing_cust.html, or complete the form at any USDA office, or 
call (866) 632-9992 to request the form. You may also write a letter 
containing all of the information requested in the form. Send your 
completed complaint form or letter to us by mail at U.S. Department of 
Agriculture, Director, Office of Adjudication, 1400 Independence Avenue 
SW., Washington, DC 20250-9410, by fax (202) 690-7442 or email at 
program.intake@usda.gov.
    Individuals who are deaf, hard of hearing or have speech 
disabilities and wish to file either an EEO or program complaint, 
please contact USDA through the Federal Relay Service at (800) 877-8339 
or (800) 845-6136 (in Spanish).
    Persons with disabilities, who wish to file a program complaint, 
please see information above on how to contact us directly by mail or 
by email. If you require alternative means of communication for program 
information (e.g., Braille, large print, audiotape, etc.) please 
contact USDA's TARGET Center at (202) 720-2600 (voice and TDD).

    Dated: September 29, 2015.
Samuel H. Rikkers,
Acting Administrator, Rural Business-Cooperative Service.
[FR Doc. 2015-25321 Filed 10-5-15; 8:45 am]
 BILLING CODE 3410-XY-P