Notice of Funding Opportunity for the Empowering Rural America (New ERA) Program, 31218-31232 [2023-10392]

Agencies

• DEPARTMENT OF AGRICULTURE
• Rural Utilities Service

[Federal Register Volume 88, Number 94 (Tuesday, May 16, 2023)]
[Notices]
[Pages 31218-31232]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-10392]


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DEPARTMENT OF AGRICULTURE

Rural Utilities Service

[Docket #: RUS-23-ELECTRIC-0005]


Notice of Funding Opportunity for the Empowering Rural America 
(New ERA) Program

AGENCY: Rural Utilities Service, USDA.

ACTION: Notice.

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SUMMARY: The Rural Utilities Service (RUS or the Agency), a Rural 
Development (RD) agency of the United States Department of Agriculture 
(USDA), is soliciting Letters of Interest (LOI) for applications under 
the Empowering Rural America (New ERA) Program. In addition, the Agency 
is announcing the eligibility requirements, application process and 
deadlines, and the criteria that will be used by RUS to assess New ERA 
Applications. The New ERA Program provides RUS with $9.7 billion in 
appropriated loan and grant funds under the Inflation Reduction Act 
(IRA) of 2022. In keeping with the statutory authority for the program, 
RUS will utilize the New ERA funds to assist Eligible Entities to 
achieve the greatest reduction in Greenhouse Gas (GHG) emissions while 
advancing the long-term resiliency, reliability, and affordability of 
rural electric systems. All Eligible Entities are responsible for any 
expenses incurred in developing their LOIs and New ERA Applications.

DATES: Letters of Interest can be submitted beginning at 11:59 p.m. 
Eastern Time (ET) on July 31, 2023, and until 11:59 p.m. ET on August 
31, 2023. Letters of Interest will not be accepted after 11:59 p.m. ET 
on August 31, 2023.
    Application Process: Applicants must submit an LOI in order to be 
considered for an Invitation to Proceed. An Eligible Entity that is 
invited by RUS to proceed will receive an Invitation to Proceed and 
will have sixty (60) days to complete and submit a New ERA Application 
beginning from the date the Invitation to Proceed is emailed to the 
Applicant. If the sixty (60)-day deadline to submit the completed 
application falls on Saturday, Sunday, or a Federal holiday, the 
application is due the next business day. RUS reserves the right, in 
its sole discretion, to extend the sixty (60)-day deadline upon the 
written request of the Applicant if the Applicant demonstrates to the 
satisfaction of the Administrator that exceptional circumstances exist 
to warrant the extension. New ERA Awards will be made as soon as 
possible following the submission of a New ERA Application, and all New 
ERA funds must be fully disbursed on or before September 30, 2031.

ADDRESSES: 
    Letters of Interest (LOI) Submissions. All LOIs must be submitted 
to RUS electronically through an RUS on-line application portal. The 
Agency will finalize the specific requirements of submitting the LOI 
through the on-line application portal by separate notice in the 
Federal Register, the RUS website at https://www.rd.usda.gov/programs-services/electric-programs/empowering-rural-america-new-era-program, 
and Grants.gov on or before July 31, 2023.
    Application Submissions. Eligible Entities selected to proceed with 
the New ERA Application must submit a completed New ERA Application 
package in accordance with the instructions that will be provided in 
the RUS Invitation to Proceed.
    Other Information: Additional information, resources, and sample 
LOI are available at https://www.rd.usda.gov/programs-services/electric-programs/empowering-rural-america-new-era-program. The IRA 
Funding for Rural Development website is located at www.rd.usda.gov/inflation-reduction-act.

FOR FURTHER INFORMATION CONTACT: Christopher McLean, Assistant 
Administrator, Electric Program, Rural Utilities Service, Rural 
Development, United States Department of Agriculture, 1400 Independence 
Avenue SW, STOP 1568, Washington, DC 20250-1560; Telephone: 202-690-
4492. Email to: [email protected].

SUPPLEMENTARY INFORMATION:

Overview

    Federal Awarding Agency Name: Rural Utilities Service (RUS).
    Funding Opportunity Title: Empowering Rural America (New ERA) 
Program.
    Announcement Type: Notice of Funding Opportunity (NOFO).
    Assistance Listing Number: 10.758.
    Dates: Letters of Interest can be submitted beginning at 11:59 p.m. 
ET on July 31, 2023, and until 11:59 p.m. ET on August 31, 2023. 
Letters of Interest will not be accepted after 11:59 p.m. ET

[[Page 31219]]

on August 31, 2023. An Eligible Entity that is invited by RUS to 
proceed with the New ERA Application will have sixty (60) days to 
submit such a completed New ERA Application beginning from the date the 
Invitation to Proceed is emailed to the Applicant.
    The Agency encourages Applicants to consider eligible Projects 
under this funding notice that achieve the greatest reduction of GHG as 
defined in Section A.3. The RD mission of the USDA aims to:
     Assist rural communities recover economically through more 
and better market opportunities and through improved infrastructure;
     Ensure all rural residents have equitable access to RD 
programs and benefits from RD funded projects; and
     Reduce climate pollution and increase resilience to the 
impacts of climate change through economic support to rural 
communities.

A. Program Description

    1. Purpose of the Program. For nearly a century, rural electric 
cooperatives have been the backbone of power delivery for rural 
America, building the infrastructure necessary for economic development 
and a high quality of life. Owned by their members, cooperatives are a 
fundamental part of rural communities, employing residents, pushing 
progress, and providing leadership.
    The Empowering Rural America (New ERA) Program provides financial 
assistance to Eligible Entities, as described in Section C, to achieve 
the greatest reductions in GHG emissions through the cooperatives' 
voluntary transformation of rural electric systems in a way that 
promotes resiliency and reliability of rural electric systems and 
affordability for their members.
    With the Inflation Reduction Act, the Biden-Harris Administration 
and the United States Congress are making the greatest investment in 
rural electrification since the New Deal. The Biden-Harris 
Administration understands the transformative nature and special 
qualities provided by this appropriation. Energy produced will be 
clean, affordable, reliable, and owned by the people who live in rural 
America. As a result, this legislation and the funding opportunity here 
allows for a New ERA in rural communities.
    2. Statutory and Regulatory Authority. The New ERA Program is 
authorized under the Inflation Reduction Act of 2022 (Pub. L. 117-169, 
``IRA''), subtitle C, section 22004, and will be administered by RUS. 
section 22004 amends 7 U.S.C. 8103 by adding subsection (j) to that 
section. Other regulations that apply to this Notice are 7 CFR parts 
1710 through 1730, 1767, 1773, 1787, and 1970 (https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XVII).
    3. Definitions. The definitions applicable to this Notice are as 
follows:
    Achievable Reductions Tool. A simple Excel spreadsheet tool 
developed by RUS. RUS will provide the Achievable Reductions Tool to 
the Applicant to input data related to its Portfolio of Actions, and 
estimate the reduction of GHG emissions from the Portfolio of Actions.
    Administrator. The Administrator of the RUS, an agency under the RD 
mission area of the USDA.
    Agency. The Rural Utilities Service (RUS).
    Applicant. An Eligible Entity that has received an Invitation to 
Proceed to submit a New ERA Application.
    Award. The financial assistance offered to an Applicant under this 
Notice.
    Award Agreement. The agreement between RUS and the Applicant 
describing the terms and conditions of the Award.
    Award Documents. All agreements and documentation to support and 
evidence the financial assistance and obligations of the Awardee, 
including the Award Agreement, loan or grant agreements, promissory 
notes, mortgages, deeds of trust, indentures, and other security 
agreements executed in connection with the Award.
    Awardee. An entity that has been awarded funding under the New ERA 
Program.
    Carbon Capture and Storage Systems. Those systems that capture and 
permanently store carbon dioxide so that it will not enter the 
atmosphere. Any proposed Carbon Capture and Storage System must be 
commercially proven and be able to capture and permanently store carbon 
dioxide within the timeframe of this program. Qualifying systems must 
demonstrate that they are delivering public health and other co-
benefits, including not increasing other air pollutants.
    Commercially Available Technology. Equipment, devices, 
applications, or systems that have a proven, reliable performance and 
replicable operating history specific to the proposed application. The 
equipment, device, application, or system is based on established 
patented design or has been certified by an industry-recognized 
organization and subject to installation, operating, and maintenance 
procedures generally accepted by industry practices and standards. 
Service and replacement parts for the equipment, device, application, 
or system must be readily available in the marketplace with established 
warranty applicable to parts, labor, and performance. The technology 
must be designed and meant for the proposed use.
    Commitment Letter. The notification issued by the Administrator to 
an Applicant containing the total Award, the acceptable security 
arrangement, and such controls and conditions on the Awardees' 
financial, investment, operational and managerial activities deemed 
necessary by the Administrator to adequately secure the Government's 
interest. This notification will also describe the accounting standards 
and audit requirements applicable to the Award.
    Community Benefit Plan. The Applicant's description of how the 
proposed Project will benefit communities and residents within the 
Eligible Service Area as further described in Section D.2.ii.s.
    Distressed and Disadvantaged Communities. A Disadvantaged Community 
is determined by the Agency by using the Council on Environmental 
Quality's Climate and Economic Justice Screening Tool (CEJST) (which is 
incorporated into the USDA look-up map) which identifies communities 
burdened by climate change and economic and environmental injustice. 
Further, all communities within the boundaries of Federally Recognized 
Tribes will be determined to be Disadvantaged Communities by the 
Agency, in addition to Alaska Native Villages. Distressed Community is 
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-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: https://ruraldevelopment.maps.arcgis.com/apps/webappviewer/?id=4acf083be4c44bb7864d90f97de0c788.
    Eligible Activity(ies). The purchase of Renewable Energy, Renewable 
Energy Systems, Zero-Emission Systems, and Carbon Capture and Storage 
Systems, the deployment of such systems, or the implementation of 
energy efficiency improvements to electric generation or transmission 
systems of Eligible Entity, and the combinations of any such 
activities, as more fully described in Section C.

[[Page 31220]]

    Eligible Award Costs are defined in Section C.3.i.
    Energy Storage System(s). A facility capable of accepting energy, 
storing the energy for a period of time and then later releasing the 
stored energy.
    Eligible Entity(ies). An electric cooperative described in section 
501(c)(12) or 1381(a)(2) of the Internal Revenue Code of 1986 and is or 
has been a RUS or Rural Electrification Administration (REA) electric 
loan borrower pursuant to the Rural Electrification Act of 1936 (RE 
Act) or is serving a predominantly Rural Area (or a wholly or jointly 
owned subsidiary of any the preceding listed such electric 
cooperatives).
    Eligible Service Area. An area as described in Section C.1.iii. of 
this NOFO.
    Energy Communities. A community as defined by the Department of 
Treasury and the Internal Revenue Service at https://www.irs.gov/pub/irs-drop/n-23-29.pdf or through future governmental guidance.
    Environmental and Historic Preservation Requirements. The National 
Environmental Policy Act of 1969, as amended (NEPA) (42 U.S.C 4321, et 
seq), section 7 of the Endangered Species Act (16 U.S.C. 1531 et seq.), 
and section 106 of the National Historic Preservation Act (NHPA)(54 
U.S.C. 300101 et seq.), as well as their implementing regulations at 7 
CFR part 1970, Environmental Policies and Procedures (including 
Farmland Protection Policy Act Implementation Policy), 50 CFR part 402, 
Interagency Cooperation, and 36 CFR part 800, Protection of Historic 
Properties
    Financial Feasibility. An Eligible Entity's ability, as determined 
by the Administrator, to generate sufficient revenues to cover its 
expenses, sufficient cash flow to service its debts and obligations as 
they come due, and meet the financial ratios set forth in the 
applicable Award Documents.
    Greenhouse Gases (GHG). For purposes of this NOFO, GHG shall mean 
carbon dioxide, methane, and nitrous oxide.
    Indian Tribe. The term ``Indian Tribe'' has the meaning given the 
term in section 5304 of title 25.
    Invitation to Proceed. A written notification issued by RUS to the 
Eligible Entity acknowledging that the LOI was received, reviewed, and 
inviting the Eligible Entity to submit a New ERA Application. The 
notification provides the Applicant instructions on how to submit the 
application package and details of the next steps in the application 
process.
    Letter of Interest (LOI). A signed letter issued by an Eligible 
Entity notifying RUS of its intent to apply for an Award and addressing 
all the elements identified for a complete LOI in Section D.2.i. of 
this NOFO.
    New ERA Application. An application containing all information 
required by RUS as identified in the Invitation to Proceed. The New ERA 
Application must be materially complete in form and substance 
satisfactory to RUS within the specified time as defined in section D 
of this NOFO.
    Non-Federal Entities. As defined in 2 CFR 200.1, Non-Federal 
Entities are States, local governments, Indian Tribes, institutions of 
higher education, or nonprofit organizations. The definition of what 
constitutes a non-profit is also located in 2 CFR 200.1.
    Off-taker. Shall mean: (1) The customers or members of the 
Applicant that purchase and receive electrical power and energy from 
the Applicant; or (2) the entity that has or will execute a Power 
Purchase Agreement (PPA) with the Applicant to purchase and receive 
electrical capacity and associated energy produced by the Project. The 
Off-taker may also be referred to in the PPA as the ``Buyer'', 
``Customer'', ``Purchaser'', or another name that describes the entity 
purchasing the power.
    Portfolio of Actions. The combination of the Applicant's proposed 
actions related to generation, transmission and distribution, including 
distributed energy resources, that will result in the reductions in GHG 
emissions and that support actions consistent with long-term 
resiliency, reliability, and affordability of rural electric systems.
    Power Purchase Agreement (PPA). A binding agreement executed 
between the Applicant and an Off-taker under which the Off-taker agrees 
to purchase and receive from the Applicant the electrical capacity and 
associated energy produced by the Project at a pre-determined price and 
term. The PPA may include other transactions such as the selling and 
purchasing of environmental attributes or ancillary services such as 
voltage regulation and synchronization, and contingency reserves. 
Environmental attributes include all financial attributes that are 
created or otherwise arise from the Project's generation of electricity 
from a Renewable Energy System or Zero-Emission System that include, 
but are not limited to, any environmental air quality credits, green 
credits, renewable energy credits (RECs), carbon credits, emissions 
reduction credits, emission rate credits, certificates, tags, offsets, 
allowances, etc.
    Project. New facilities acquired or constructed after the effective 
date of the IRA and compliant with all other applicable requirements of 
this Notice used to generate electricity from a Renewable Energy 
System, and/or to facilities that store electricity that supports the 
types of Renewable Energy Systems that are eligible to be financed with 
New ERA Program loan funds, as provided in section 22004 of the IRA, 
which will result in the deployment of Renewable Energy generation or 
storage capacity.
    Project Award. An Award secured by a security interest in the 
assets and revenues of the Project and supporting credit enhancements 
relating to the Project rather than by a security interest in all of 
the assets of the Applicant's electric system. Any Award to a Applicant 
that is not a current operating utility shall be a Project Loan.
    Renewable Energy. The term ``Renewable Energy'' means energy 
derived from: (1) wind, solar, renewable biomass (as defined by 7 
U.S.C. 8101(13)), ocean (including but not limited to tidal, wave, 
current, and thermal), geothermal, hydroelectric, or energy sources 
that are naturally replenished and do not run out; or (2) hydrogen 
derived from renewable biomass or water using an energy source 
described in subparagraph (1).
    Renewable Energy Systems. For purposes of this NOFO, the term 
Renewable Energy Systems means a system that generates usable Renewable 
Energy, including but not limited to: (1) Distribution and transmission 
lines and components necessary to move the Renewable Energy from the 
point of its generation to the initial point of sale; (2) Other 
components and ancillary infrastructure of a system described in 
subparagraph (1), such as an Energy Storage System and system 
efficiency measures to the distribution and transmission lines and 
components; and (3) Mechanisms for dispensing the Renewable Energy at 
retail.
    Rural Area. A Rural Area shall mean one or more of the following:
     Any area of the United States, its territories, and 
insular possessions (including any area within the Federated States of 
Micronesia, the Marshall Islands, and the Republic of Palau) other than 
a city, town, or unincorporated area that has a population of greater 
than 50,000 inhabitants, adjusted to exclude individuals incarcerated 
on a long-term or regional basis or the first 1,500 individuals who 
reside in housing located on a military base; or
     Communities where non-rural service is necessary and 
incidental to

[[Page 31221]]

providing intended benefits to Rural Areas described above.
    Secretary. The Secretary of the United States Department of 
Agriculture.
    Substantially Underserved Trust Area (SUTA). An area defined under 
section 306F of the Rural Electrification Act (https://www.rd.usda.gov/files/utprea36.pdf).
    System Awards. Awards where the Awardee will provide or has already 
provided RUS with a perfected senior lien in all its assets, both real 
and personal property, including intangible personal property and any 
property acquired after the date of the loan. Awards must be secured by 
all, or substantially all, of the system assets, including the Project 
to be financed with a System Award. System Awards are only available to 
operating electric cooperative utilities.
    Transmission Energy Efficiency Improvements. Transmission Energy 
Efficiency Improvements to an Applicant's transmission system shall 
include measures that result in the demonstrable reduction of GHG 
emissions, including but not limited to: (1) Reduction in transmission 
energy line losses; (2) Investments that alleviate transmission 
congestion as it relates to the delivery of power generated from 
Renewable Energy Systems or Zero-Emission Systems; (3) Investments in 
technologies that increase the capacity and efficiency of existing 
transmission facilities or increase transmission capacity within 
existing rights-of-way, such as investments in advanced high-capacity 
conductor technologies or Grid-Enhancing Technologies; and (4) 
Construction of new transmission lines for the transmission of power 
generated from Renewable Energy Systems or Zero-Emission Systems.
    Zero-Emission System. Any system that does not produce any GHG 
emissions when it is operated, including any infrastructure related to 
the deployment of such systems.
    4. Letters of Interest and Applications for Awards. The Agency will 
review and evaluate the LOIs pursuant to the criteria described in 
Sections C, D.2.i, and E. The Agency will open an on-line application 
portal by notice in the Federal Register, the RUS website at https://www.rd.usda.gov/programs-services/electric-programs/empowering-rural-america-new-era-program, and Grants.gov on or before July 31, 2023. 
Letters of Interest must include data that estimates the reduction in 
GHG emissions that will result from their proposed Project(s).
    At the LOI stage, the Agency will either: (1) allow the Eligible 
Entity to enter the data necessary to estimate the reduction of GHG 
emissions resulting from its Portfolio of Actions directly into the on-
line submission portal (the ``on-line estimator''); or (2) ask the 
Eligible Entity to submit a completed Achievable Reduction Tool in the 
on-line submission portal, estimating the reduction of GHG emissions 
resulting from its Portfolio of Actions. Both the on-line estimator and 
the Achievable Reduction Tool provide a single comparable method for 
the Eligible Entity to provide the necessary data the Agency will use 
to score the LOI utilizing the criteria listed in Section E.1.ii. of 
this Notice. The Eligible Entity may also provide the data that is 
required within the on-line estimator and the Achievable Reduction Tool 
by another method. The Eligible Entity's use of other methods, however, 
may impact the Agency's timeline for review of the LOI. An Eligible 
Entity that elects to use methods other than the on-line estimator and 
the Achievable Reduction Tool must demonstrate that its chosen method 
provides comparable information as the on-line estimator or the 
Achievable Reduction Tool that will allow the Agency to score the 
Portfolio of Actions under the criteria listed in Section E.1.ii. of 
this Notice.
    Upon review of the LOIs, RUS may issue an Invitation to Proceed to 
submit a New ERA Application to those Eligible Entities whose LOIs 
contain proposed Projects that the Agency determines are sufficiently 
strong in any of the criteria listed in Section E and advance the goals 
underlying the New ERA Program as described in this Notice.
    The Agency will review and evaluate all New ERA Applications based 
on the information contained in the application and will utilize the 
same criteria that it utilized in evaluating the LOIs. The Applicant 
may utilize the same data it provided to the Agency with respect to the 
estimated GHG reduction stemming from the Portfolio of Actions that it 
provided in the LOI, if it certifies in the New ERA Application that 
the data is still accurate. The Agency advises all interested parties 
that the Eligible Entity bears the full burden and cost of preparing 
and submitting an LOI and, if invited, a New ERA Application in 
response to this Notice. RUS reserves the right to ask Applicants for 
clarifying information on, or additional information related to, the 
New ERA Application. The Agency reserves the right to offer an 
Applicant a financial package different than requested.

B. Federal Award Information

    1. Types of Awards: Loans, Loan Modification, Loan/Grant 
Combination and Grants.
    2. Fiscal Year Funds: Congress appropriated the IRA funds in FY 
2023 and section 22004 requires all IRA funds to be advanced before 
September 30, 2031.
    3. Available Funds: Total appropriated funds in the amount of $9.7 
billion, through September 30, 2031.
    RUS may, at its discretion, increase the total level of funding 
available in this Notice or in any category in this funding round from 
any available source, provided this Notice meets the requirements of 
the statute that made the funding available to the Agency.
    A loan made pursuant to this Notice may not result in a 
disbursement of funds after September 30, 2031. A grant made pursuant 
to this Notice may not result in an outlay after September 30, 2031. 
Applicants are advised that the final advance date applied to 
individual Projects will be well in advance of September 30, 2031.
    4. Award Amounts: As provided in section 22004 of IRA, no one 
Applicant may receive an amount equal to more than 10 percent of the 
total $9.7 billion of budget authority appropriated under section 
22004, which equals $970 million. The Applicant's Portfolio of Actions 
may cost more than $970 million as long as the funded application uses 
less than $970 million in budget authority. The section further limits 
the amount of a grant to no more than 25 percent of the total Eligible 
Award Costs of the Applicant in carrying out a Project utilizing a 
grant.
    5. System Awards, Project Awards and Financial Assistance: The 
following types of Awards and financial assistance are available under 
the New ERA Program:
    i. System Awards and Project Awards: System Awards and Project 
Awards will be offered to Eligible Entities under the New ERA Program 
to finance Projects in accordance with Section C. of this Notice.
    a. System Awards may, at the discretion of the Administrator, 
finance a New ERA Award up to 100 percent of the Eligible Award Costs 
included in the application based on the risk profile of the Applicant 
and the proposed Project. At the discretion of the Administrator, RUS 
may release proceeds from a System Award to finance Projects for costs 
incurred during the construction of the facilities. System Awards are 
only available to operating electric cooperative utilities.

[[Page 31222]]

    b. Project Awards are generally secured by a senior security 
interest in the Project assets and the revenues generated from the 
Project, although the Agency may require additional collateral for a 
Project Award based on the risk profile of the New ERA Application and/
or the Project. Project Awards will require additional cash reserves. 
Further, to the extent that a PPA is in place between the Awardee and 
an Off-taker, the Awardee must collaterally assign the PPA to RUS as 
security and the Off-taker must consent to such assignment. RUS will 
finance up to 75 percent of the total capitalized cost of the Project 
in the loan component of a Project Award. The Awardee will be required 
to initially provide and maintain for the term of the Project Award at 
least 25 percent of the Project's total capitalized cost in the form of 
cash or an equity investment that does not include debt from any 
source. RUS may consider allowing Awardees to utilize the grant 
component of the Award for the required equity where RUS determines it 
to be financially feasible. Further, RUS may consider financing up to 
100 percent of the capitalized cost of a Project if the Project 
benefits a SUTA eligible territory as provided in section 306F of the 
RE Act. The Agency may consider allowing the Applicant to utilize, as 
the required equity component, any investment tax credits or elective 
payments in lieu of investment tax credits that the Awardee is entitled 
to receive under the Internal Revenue Code, if permitted under 
applicable authorities. The Agency may also consider allowing the 
Applicant to utilize as the required equity component any grant, 
including the grant component of the New ERA Award or a grant from any 
other source, if permitted under applicable authorities. The Agency may 
require the Awardee to provide additional credit support pending the 
Awardee's receipt of the Investment Tax Credit or Direct Payment in 
lieu of the Investment Tax Credit.
    c. Unless RUS, in its discretion, advances Award funds to an 
Awardee with a System Award as described above, RUS will only advance 
Award proceeds after commercial operation of the Project is achieved 
and subsequent successful testing of the Project is conducted to the 
satisfaction of RUS, but in no case will funds be advanced after 
September 30, 2031.
    ii. Types of Financial Assistance: Applicants are invited to 
propose assistance from any single financial assistance product or a 
combination of such products, described below. The Agency reserves the 
right to offer an Applicant a financial package different than 
requested. The most competitive applications, i.e. those that propose 
achieving the greatest reductions in GHG emissions, will receive the 
best financial offerings in terms of grant amounts and interest rates 
as outlined in the product offerings below.
    a. Loan Only. An Applicant may request an Award to finance any 
Project or combination of Projects in its application with a loan only 
award. The interest rate for a loan only award may be set at a fixed 
percent at 2 percent, zero percent, or at a rate tied to the Federal 
government's cost of money. Applicants may request interest rates as 
low as zero percent on loan only awards, the loan portion o a loan and 
grant combination, or a loan to refinance or modify existing debt where 
an eligible Project(s) contained in the New ERA Application: (1) will 
either replace a stranded asset; or (2) 40 percent or more of the 
population served by the proposed service area is located within 
Distressed Communities, Disadvantaged Communities, or Energy 
Communities; or (3) will serve SUTA communities as defined in section 
306F of the RE Act; or (4) will serve a service area located in Puerto 
Rico, United States Virgin Islands (USVI), Guam, American Samoa or 
other U.S. territories or Compact of Free Association (COFA) states. 
Principal will be deferred for a period of two years from the date of 
the promissory note. The amortization period will be based on the term 
of the Award as defined in section F.
    b. Loan and Grant Combinations and Grant Only Awards.
    1. Loan and Grant Combination. An Applicant may request to finance 
any Project or Projects in its application with a grant or grant/loan 
combination where the grant amount equals no more than 25 percent of 
the Eligible Award Costs. The interest rate and amortization for the 
loan component of the Award will be set as described in B.5.ii.a. 
above. Applicants may propose substituting cash for the loan component, 
or any portion of the loan component, at the time of application.
    2. Grant Only Awards. An Applicant may request an Award to finance 
any Project or combination of Projects in its application with a 100 
percent grant. A 100 percent grant Award may finance no more than 25 
percent of the total eligible Project costs. Grants, both as a part of 
a loan and grant combination Award or as a 100 percent grant Award, 
will be considered based on the estimated reduction in GHG emissions 
stemming from the Applicant's proposed Portfolio of Actions as measured 
by the criteria outlined in Section E.1.ii. of this Notice. The grant 
portion of an Award must also be adequately secured, as determined by 
the RUS Administrator.
    c. Loan Refinancing or Loan Modification. An Applicant may request 
to modify existing RUS or RUS guaranteed debt, or refinance debt from a 
third party, but only as such modification or refinancing relates to a 
stranded asset. The Applicant must demonstrate that it will utilize the 
benefits of such refinancing or modification to pay for or otherwise 
finance Eligible Activities. The interest rate on any new loan relating 
to a stranded asset loan refinancing or loan modification will be 
determined as provided in item B.5.ii.a. above. The term of the loan 
related to a stranded asset loan refinancing or loan modification will 
be based on overall Financial Feasibility as determined by the Agency 
and shall not exceed 35 years. Stranded asset loans may, where 
financially feasible and secure, be advanced upon execution of the 
applicable loan and security documents. If the Awardee does not perform 
its obligation described above it will be required to repay, in whole 
or in part, the refinancing or modification benefits to the U.S. 
Government for non-performance.
    The amount of appropriated funds consumed by any individual funded 
New ERA Application will depend on the amount of grant used, which 
scores on a dollar-for-dollar basis, and the amount of loans, which 
scores at a subsidy rate related to the difference between the interest 
rate offered on the loan and prevailing treasury rates, portfolio risk, 
and other factors at the time of obligation. RUS will do this 
calculation before making an Award to ensure compliance with the 
statutory limitations described in Section B.4. The Agency further 
reserves the right to take into account when making Awards the cost 
effectiveness of the proposed Projects relative to the appropriated 
funds consumed.
    6. Anticipated Award Date: Beginning March 1, 2024.
    7. Performance Period: Five (5) years from the date of 
environmental clearance, but no later than September 30, 2031.
    8. Use of Other Governmental Funds: The Agency will generally allow 
the Awardee to combine the incentives contained in this Notice with 
other governmental benefits, provided such combinations are otherwise 
permitted by law or regulation.
    9. Renewal or Supplemental Awards: None.

[[Page 31223]]

    10. Type of Assistance Instrument: Loan and Grant Agreements.

C. Eligibility Information

    1. Eligible Entities, Projects, Service Areas and other Eligibility 
Factors.
    i. Eligible Entities are:
    a. Electric cooperatives described in section 501(c)(12) or 
1381(a)(2) of the Internal Revenue Code of 1986 who are currently or 
have been in the past a RUS electric loan borrower pursuant to the RE 
Act;
    b. Electric cooperatives serving predominantly Rural Areas; or
    c. Wholly or jointly owned subsidiaries of such electric 
cooperatives listed in a and b.
    For the purposes of this program, the term ``predominantly rural'' 
as used in (b) in this paragraph shall mean a service territory that 
must include at least 50 percent Rural Areas.
    ii. An eligible Project includes a Portfolio of Actions that will 
result in the reduction in GHG emissions and be consistent with long-
term resiliency, reliability, and affordability of rural electric 
systems. Such actions include, but are not limited to:
    a. The purchase or construction of:
    1. Renewable Energy.
    2. Renewable Energy Systems.
    3. Zero-Emission Systems.
    4. Carbon Capture and Storage Systems.
    b. Activities that will enable the deployment of the aforementioned 
systems and/or improve energy efficiency and strategies to support 
these goals such as, but not limited to:
    1. Grid-edge, microgrid solutions, and other distributed energy 
strategies.
    2. Energy Storage Systems in support of GHG emission reductions or 
Renewable Energy Systems;
    3. Software and hardware to enable the integration and/or the use 
of additions and upgrades.
    4. Modifying or refinancing existing loans from RUS or refinancing 
non-RUS loans for retiring non-Renewable Energy assets on an 
accelerated basis with savings reinvested into clean energy 
investments.
    5. Entering a long-term agreement to purchase power from a 
Renewable Energy System or Zero-Emissions System.
    6. Upgrade of existing Renewable Energy Systems or Zero-Emission 
Systems or related transmission facilities that increase the operating 
energy efficiency of these systems.
    7. Transmission improvements that can significantly enable 
Renewable Energy Systems and Zero-Emissions Systems, reduce congestion, 
and improve the efficiency of the system.
    8. Activities that will significantly reduce energy demand and GHG 
emissions.
    iii. Eligible Service Areas:
    a. Electricity generated from or transmitted by facilities financed 
with New ERA funds shall be delivered and distributed to consumers 
located in Eligible Service Areas as defined in this Section.
    b. The facilities to be financed with an Award to an Applicant that 
is not a current or former RUS/REA borrower must provide electric 
service to consumers located in those areas that are considered 
``predominantly rural.'' RUS, in making a determination of whether a 
service area is predominantly rural will:
    1. Identify the service territory where electricity from the 
facilities to be financed by the proposed Award will be delivered and 
consumed; and
    2. Further identify those areas within the service territory that 
are in Rural Areas in comparison to those that are in non-rural areas. 
The ratio of the population located in the Rural Areas versus the 
population of the entire service territory is referred to as the 
``rural percentage'' of the service territory. Meters served in lieu of 
population may be used as a proxy to determine rural percentage of the 
service territory. For purposes of this NOFO, a service territory that 
is determined to have a rural percentage equal to or greater than 50 
percent is considered predominantly rural and is an Eligible Service 
Area. RUS will make the rurality determination by examining the 
shapefile the Eligible Entity submits with its LOI as provided in 
Section D.2.i.a.7. of this Notice.
    c. The service areas of any existing or former RUS and former REA 
electric loan borrowers under the RE Act are deemed to be ``100 percent 
rural'' and therefore Eligible Service Areas under this NOFO.
    iv. Other Eligibility Factors: Program Factors. In addition to the 
above eligibility factors, the Agency may consider the following in 
determining which LOIs to select to provide an Invitation to Proceed, 
and then in evaluating the full New ERA Application.
    a. Reliability and Resiliency:
    1. All proposals must promote the reliability and resiliency of 
rural electric systems.
    2. Plans may include Energy Storage Systems, microgrid systems that 
reduce GHG emissions, and other strategies to ensure the reliable 
provision of energy; and
    3. Plans may include transmission improvements to enable the 
transmission of the power generated from Renewable Energy Systems or 
Zero-Emissions Systems to the consumer, reduce congestion, and improve 
system efficiency.
    b. Affordability:
    1. All proposals must be affordable to the consumers in the 
Eligible Service Area who will be served by the Project in question.
    2. The Administrator reserves the discretion to take consumer 
impact and the efficient use of program funds into account when ranking 
projects at the LOI and Award stages.
    3. Plans may include, whether eligible to be funded or not, energy 
efficiency improvements and other strategies to minimize and reduce 
costs for rate payers.
    c. Geographic Diversity: In making selections for full 
applications, the Administrator may take the geographic distribution of 
proposed Projects into account.
    d. Resources: In making selections for full applications, the 
Administrator may take the New ERA funding requested for the proposed 
Eligible Award Costs into account relative to the total budgetary 
resources available to the New ERA Program. The Administrator reserves 
the right to reduce the dollar amount offered based on this 
consideration.
    e. SUTA Considerations: For the purposes of this funding notice, 
SUTA provisions will be available to the Administrator as it would be 
in the existing RUS Electric Infrastructure Loan Program under the RE 
Act;
    f. Other Funds: In making selections for full applications, the 
Administrator may take into account the New ERA funding requested for 
the proposed Eligible Award Costs relative to the Applicant's ability 
to utilize funds from other Federal programs, other than New ERA or 
Powering Affordable Clean Energy (PACE) Programs, to finance the cost 
of the Project; and
    g. Financial Feasibility: The Financial Feasibility of the 
requested financial assistance by evaluating the cost of the Project 
relative to the Applicant's ability to repay the loan component of the 
Award.
    2. Cost Sharing or Matching.
    For Project loans, RUS will finance up to 75 percent of the total 
capitalized cost of the Project in the loan component of a Project 
Award. The Awardee will be required to initially provide and maintain 
for the term of the Project Award at least 25 percent of the Project's 
total capitalized cost in the form of cash or an equity investment.
    As noted in B.5.i.b above, the Agency may where Financially 
Feasible allow an Awardee to utilize the grant

[[Page 31224]]

component of the Award and/or any applicable tax credit that it expects 
to receive (including credit amounts expected to be received through 
Elective Pay elections under section 6417 of the Internal Revenue Code) 
toward the 25 percent equity requirement for a Project Award. Such 
financial equity may not come from the proceeds of any loan from any 
creditor, including insiders of the Awardee.
    3. Eligible and Ineligible Costs.
    Award funds must be used to pay only allowable, necessary, and 
eligible costs incurred post Award, except for approved pre-application 
expenses that are listed below. Eligible costs must be consistent with 
the cost principles identified in 2 CFR part 200, subpart E. Any 
request for an advance of funds under the Award that includes any 
ineligible costs will be rejected.
    i. Eligible award costs. Award funds under this NOFO may be used to 
pay for the following costs:
    a. To fund the construction or improvement or purchase of 
facilities, including buildings and land required to construct the 
facilities being financed with the Award and other allowable costs and 
expenses listed in 2 CFR part 200, subpart E. Award funds may also be 
utilized for the construction of new linear facilities or the upgrade 
of existing linear facilities that are necessary to operate any new 
generation facility including, but not limited to, transmission or 
distribution facilities that are needed to export the power;
    b. To fund reasonable pre-award expenses as provided in 2 CFR part 
200, subpart E. Pre-award expenses must be included in the first 
request for advance of Award funds.
    c. To fund interest incurred during construction pursuant to 7 CFR 
1710.106(a)(4); and
    d. To refinance or modify existing debt as described in Section B 
of this NOFO.
    ii. Ineligible award costs. Award funds under this part may not be 
used for any of the following purposes:
    a. To fund operating expenses of the Awardee unless specifically 
outlined in the Applicant's Award Agreement;
    b. To fund costs incurred prior to the date on which the 
application was submitted other than the eligible pre-award expenses 
under 2 CFR part 200, subpart E;
    c. To fund an acquisition of an affiliate, or the purchase or 
acquisition of any facilities or equipment of an affiliate. Note that 
if affiliated transactions are contemplated in the application, 
approval of the application does not constitute approval to enter into 
affiliated transactions or acceptance of the affiliated arrangements 
that conflict with the obligations under the Award Documents; and
    d. Any other expense that is not allowed pursuant to 2 CFR part 
200, subpart E.
    e. RUS will not approve funding under this Notice that violates the 
terms of an Applicant's existing wholesale power contract.

D. Application and Submission Information

    1. Address to Request Application Package. Application information 
and samples concerning the New ERA Program are available at https://www.rd.usda.gov/programs-services/electric-programs/empowering-rural-america-new-era-program. 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) or the 711 Relay Service.
    Letters of Interest and New ERA Applications must be submitted in 
accordance with the instructions provided in the ADDRESSES section of 
this NOFO.
    2. Content and Form of Application Submission.
    The Agency will open an on-line application portal by notice in the 
Federal Register, the RUS website at https://www.rd.usda.gov/programs-services/electric-programs/empowering-rural-america-new-era-program, 
and Grants.gov on or before July 31, 2023. The application process for 
the New ERA Program will be conducted in two phases. Phase one will be 
submission of an LOI that includes sufficient information to determine 
a pool of prospective Applicants which advance the goals of the 
statute, achieve policy objectives, meet minimum requirements, and are 
within the funds allocated to the program. Those LOIs that meet the 
criteria will be issued an Invitation to Proceed to submit a full, 
complete New ERA Application (phase 2).
    i. Phase 1--LOI Submission. The LOI must include the following:
    a. Eligible Entity's Profile and Point of Contact Information:
    1. Legal name of the Eligible Entity and applicable organizational 
information. If the Eligible Entity is a subsidiary of one or more 
Eligible Entities the Eligible Entity must list its owners in the LOI.
    2. Eligible Entity's address, principal place of business, and 
website.
    3. Eligible Entity's tax identification number and its Unique 
Entity Identifier (UEI) number from the System for Award Management 
(SAM) registry.
    4. Specify if the Eligible Entity (a) is an existing RUS borrower; 
(b) is a former RUS or REA borrower; or (c) has never been a RUS or REA 
borrower.
    5. Name and title of Eligible Entity's manager and/or point of 
contact, including first name, last name, title/position, phone, email, 
and other relevant contact information.
    6. A Project name.
    7. Location of the Project and the applicable service area using a 
digital shapefile. If the application asserts that the Project or the 
applicable service area is within a SUTA eligible area, it must 
describe how such location, or such applicable service area, is a SUTA 
covered area as provided in 7 CFR 1700.105.
    b. A statement as to whether the subsequent New ERA Application 
will provide a request for a Project Award or System Award.
    c. Identify the value of its net assets and specify if the Eligible 
Entity has ever been placed in receivership, court mandated 
liquidation, under a workout agreement, or has declared bankruptcy or 
has had a decree or order issued for relief in any bankruptcy, 
insolvency, or other similar action.
    1. If the Eligible Entity is a current RUS borrower, the Eligible 
Entity must not be in default and must be current on any of its 
obligations to RUS.
    2. The Applicant must submit a copy of its audited balance sheet 
and income statements for the last three years.
    3. If applicable, the Eligible Entity must provide the balance 
sheet and income statements for the last three years of the entity or 
entities providing equity or security for the Award together with an 
explanation of the legal relationship among the legal entities.
    4. If the Eligible Entity is a wholly or jointly owned subsidiary 
of an electric cooperative, the Eligible Entity must provide a balance 
sheet and income statement of each of its members.
    d. Identify the type and amount of financial assistance described 
in Section B.5. it will seek in its application if it receives an 
Invitation to Proceed. If the Eligible Entity intends to seek a 
combination of the types of financial assistance listed in Section B.5, 
it must state the amount it intends to seek for each type of financial 
assistance.
    e. Disclose if any foreign entity or foreign person has an 
ownership interest, voting interest, management rights, or an equity 
interest in the Eligible Entity or any rights in the proposed 
project(s).
    f. Estimate the proposed GHG reduction from the Portfolio of 
Actions

[[Page 31225]]

as provided in Section A.4. of this Notice.
    g. State the value of its Total Utility Plant (TUP) as of December 
31, 2022.
    h. Provide a technical description of the Project(s) it intends to 
finance if it receives an Award. The technical description must include 
the following:
    1. A description of other actions related to the Projects that will 
allow the Eligible Entity to reduce its total GHG emissions.
    2. The description of the Portfolio of Actions shall not exceed 
1,500 words, and it must include a summary of the technical aspects of 
the various actions that will allow RUS to measure the reduction of GHG 
emissions resulting from the Portfolio of Actions.
    3. The Eligible Entity must provide the amount of GHG emissions 
reductions under the evaluation criteria listed in Section E that will 
result from the implementation of its proposed Project(s) in the LOI. 
This will be completed by using the RUS Achievable Reductions Tool or 
submission of comparable data. Use of other methods by Eligible 
Entities may impact the Agency's timeline for review of the 
application. Eligible Entities that choose to use other methods will 
need to demonstrate that their method provides comparable information 
for the Agency to adequately estimate the reduction of GHG emission 
reductions stemming from its proposed Portfolio of Actions.
    4. The Eligible Entity must also provide sufficient detail for RUS 
to determine that the Portfolio of Actions satisfies the technical 
requirements for this program and is consistent with industry standards 
and prudent utility practices.
    i. RUS reserves the right to ask Eligible Entities for clarifying 
information on, or additional information related to, the LOI.
    ii. Phase 2--Application Submission. Upon receiving an Invitation 
to Proceed, the Applicant must submit its application package within 
ninety (90) days of receipt of such invitation. The Applicant's 
application package must contain the applicable information and 
documents required in 7 CFR part 1710, subpart D as well as the 
following information and documentation:
    a. Cover Letter. A signed cover letter from the Applicant's general 
manager or highest-ranking officer requesting an Award under this NOFO 
and include a brief executive summary.
    b. Articles of incorporation and bylaws or other applicable 
governing and organizational documents. The Applicant must provide its 
articles of incorporation or other applicable organizational documents 
currently in effect, as filed with the appropriate state office, 
setting forth its corporate purpose, and the bylaws or other governing 
documents currently in effect, as adopted by its governing body. 
Applicants that are active RUS borrowers may comply with this 
requirement by notifying RUS, in writing, that there are no material 
changes to the documents already on file with RUS.
    c. Environmental and Historic Preservation Requirements. If the 
Applicant has not received written notice from RUS that the Project 
environmental review process is formally concluded as provided in 7 CFR 
1970.11, it must submit documents that establish that a review is in 
progress and no ground disturbance activities have started prior to 
receiving notice that the Environmental and Historic Preservation 
Requirements have been completed. This requirement requires the 
Applicant to include a certification that construction has not started 
and that it will not start prior to obtaining written notice from RUS. 
The Applicant must further state the type of environmental review 
document it believes needs to be prepared in accordance with 7 CFR part 
1970 (e.g., a Categorical Exclusion with an Environmental Report, an 
Environmental Assessment, or Environmental Impact Statement in 
accordance with subparts B, C, or D, respectively). The Applicant must 
provide a description of any potential environmental controversy or 
extraordinary circumstances, and the estimated timelines for completing 
the environmental process. Applicants are strongly advised that 
commencing construction prior to environmental or historic preservation 
clearance could make a Project ineligible for RUS financing.
    d. Financial Forecast. In order to demonstrate that the loan is 
feasible as required in 7 CFR 1710.112, the Applicant must submit a 
financial forecast. For System Awards, the financial forecast must 
cover at least 10 years from the commercial operating date of the 
Project to be financed, and it must demonstrate that the Applicant's 
operation is economically viable and that the proposed loan is 
financially feasible. RUS may request projections for a longer period 
of time or additional information if RUS deems it necessary based on 
the financial structure of the Applicant and necessary to make a 
determination with respect to Financial Feasibility. For Project 
Awards, RUS may require that the financial forecast cover a period 
equal to the maturity period of the loan.
    RUS will provide the Applicant with the specific information and 
data that must be included in the financial forecast in the Invitation 
to Proceed.
    e. Ratepayer Benefit: The Award must provide demonstrable benefits 
to rate payers located in the service area. The Applicant must 
demonstrate in its New ERA Application that the consumer and financial 
benefits resulting from the Award will be shared between the Awardee 
and the Off-taker. This must be shown through a long-range financial 
forecast scenario that establishes that the revenue per kilowatt hour 
(KWh) the Applicant will receive from the sale of the power to the Off-
taker would have been higher but for the Award. Additionally, a net 
present value calculation should be performed to demonstrate the 
financial benefit to the rate payer resulting from the Award versus 
business as usual. The Agency may also request additional ratepayer 
information over the course of the program.
    f. Power Purchase Agreement (PPA). If the Applicant proposes to 
sell the energy generated from the Project to an Off-taker, the 
Applicant must provide an executed copy of the PPA with the Off-taker. 
If the Applicant is unable to execute a final PPA with the Off-taker 
prior to submitting its application, it must submit a draft of the PPA 
with its application and then submit the executed copy of the PPA when 
it is executed. RUS will not approve a New ERA Application that 
proposes to sell the energy to an Off-taker unless and until the 
Applicant submits an executed PPA with the Off-taker and RUS approves 
such PPA.
    Further, if the Applicant proposes to sell power generated from the 
Project to an Off-taker under a PPA, the Applicant must provide a draft 
copy of the PPA with the Application, which must include two different 
rate schedules; one for the case without the provision of the Award and 
the other for the case with the provision of the Award. Because the PPA 
is essentially the mechanism by which consumers will benefit from the 
New ERA Program, all draft PPAs must be approved by RUS prior to being 
executed. RUS approval of the New ERA Application is predicated upon an 
executed PPA that has been approved by the Agency.
    g. Power Resources Owned, Co-owned or Leased. If applicable, 
provide a discussion or table of the existing power resources available 
to the Applicant that includes generation facilities owned, co-owned or 
leased. The information provided should include: name of plant and 
unit; ownership interest (%); type

[[Page 31226]]

of unit and fuel used; net peak capacity; and in-service date.
    h. Power Purchase Contracts. If applicable, provide a discussion of 
the Applicant's power purchase contracts (with terms greater than two 
years) that describes the capacity and energy resources purchased. The 
information should include: type of contract (take-or pay, unit power 
purchase, parties to the contract, amount (capacity and energy); and 
term and expiration date.
    i. Power Sales Contracts. If applicable, a description of any 
existing power supply arrangements, such as wholesale power contracts, 
between an Off-taker and its members including the type of agreements 
(e.g., all or partial requirements), the initial execution dates, and 
the dates the agreements expire. The Applicant must provide copies of 
the agreements if requested by the Agency.
    j. Engineering Report. A signed, final engineering report or final 
engineering and power cost study must be provided with the New ERA 
Application or soon thereafter. The report must describe the purpose, 
design, costs, construction, and operation of the Project(s). A draft 
engineering report must be submitted for RUS approval prior to it being 
finalized and signed. RUS approval of the engineering report is 
required prior to the obligation of an Award; however, the Awardee may 
amend the engineering report with RUS' written approval after 
obligation. The finalized engineering report must be signed or approved 
by licensed professional engineer.
    k. Project Contracting. The Applicant must provide a list of all 
engineering, procurement, and construction contracts it intends to use 
on the Project(s), with a brief description and cost estimate of each 
contract. At the Agency's discretion, any contracts selected by the 
Agency for review and approval must be submitted within period-of-time 
requested by the Agency. In no event will Award funds be obligated 
prior to RUS approval and any necessary applicable government approval 
of the selected Project contracts.
    l. Interconnection Agreements. Agreements required to interconnect 
a Renewable Energy System or Zero-Emission System or Energy Storage 
System or microgrid system to a distribution or transmission system 
must be included with the application. If the Applicant is unable to 
submit the necessary interconnection agreement prior to submitting its 
New ERA Application, it must submit a draft of the interconnection 
agreement with its application and then submit the executed copy of the 
interconnection agreement when it is executed. RUS must approve any 
interconnection agreement before an Award is obligated.
    m. System Impact Studies. The status and summary of any related 
System Impact Studies, as they may relate to the interconnection of the 
Project with a distribution or transmission network, must be provided 
with the application. System Impact Studies must be conducted, as 
applicable, to include load flow studies, short circuit analysis, 
system stability analysis, and conclusions (e.g., identify voltage, 
overload, stability problems and proposed actions or contingencies; 
single contingency analysis of proposed facilities; transmission 
constraints; and system improvements needed). The nature of any 
required system upgrades and associated costs to be incurred by the 
Awardee, Off-taker or other entity must be identified. The Agency may 
request a copy of any System Impact Studies or links to review such 
studies. The Agency will not obligate an Award until the Applicant 
submits the System Impact Study.
    n. Transmission Service Agreement. Transmission Service Agreements 
required to export, transmit or deliver the power from the Project to 
the Off-taker must be included with the application. These agreements 
must receive Agency approval and the Agency will not obligate an Award 
until it has approved all necessary Transmission Service Agreements.
    o. Other Major Agreements. The Applicant must provide a list and a 
brief description-of all other major agreements that will need to be 
executed for the Project. Such agreements, if applicable, include, but 
are not limited to operations and maintenance arrangements, joint 
ownership arrangements, fuel management, and fuel supply and 
transportation. Agreements selected for approval by the Agency should 
be submitted within the period of time requested by the Agency. RUS 
will not approve the New ERA Application until all agreements requested 
for review have been approved by the Agency.
    p. Meteorological Data and Studies. Renewable Energy Systems such 
as solar and wind projects must be supported with meteorological data 
and studies to determine the expected energy generation of the facility 
during the initial year of operation. The Applicant must identify the 
amount and basis of any annual degradation in energy output of the 
Renewable Energy Systems.
    q. Fuel and Fuel Transportation Strategies. If applicable, the 
Applicant must describe the fuel and fuel transportation strategies of 
the Project and show that the fuel supply for the life of the Project 
is adequate. Fuel supply contracts and fuel transportation contracts 
must be identified, including the term of each contract. Copies of the 
fuel contracts or arrangements must be provided if requested by the 
Agency.
    r. Sources and Uses of Water. The Applicant must identify the uses 
and source of water for the Project and provide evidence that the water 
supply will be adequate to meet both daily requirements and for the 
life of the Project. If requested by the Agency, (1) the Applicant must 
provide copies of any agreements or arrangements that would be used to 
purchase or receive water used and consumed by the Project; and/or (2) 
the applicable water balance diagram of the facilities must be 
provided.
    s. Technical and Financial Description. The technical and financial 
description of the Portfolio of Actions shall not exceed 1,500 words 
per Project proposed in the New ERA Application and must include the 
following:
    1. Description of each Project being requested for financing, 
including Project name, location, type, size, and renewable or zero-
emission energy units generated and saved or carbon captured.
    2. For each Project, submit an updated or revised digital shapefile 
of the proposed service area if such service area has changed from that 
contained in the digital shapefile submitted with the LOI.
    3. For each Project, indicate the estimated dates to start 
construction and to achieve commercial operation.
    4. Verification that the Project(s) will be designed, constructed 
and operated based on proven Commercially Available Technology.
    5. The estimated total capital cost of each Project and the amount 
of Award funds being requested to finance each Project.
    t. Real Estate Agreements. If the Applicant is leasing the real 
estate upon which it will build and operate the Project, the Applicant 
must submit an executed copy of the lease agreement with the 
application. The lease agreement must have a provision that allows the 
Applicant to collaterally assign the lease to RUS as security for the 
loan. Further, to the extent that the lessor under any lease with the 
Applicant has executed a mortgage or deed of trust on the real estate 
in question, the mortgagee must execute an attornment and non-
disturbance agreement in favor of the Applicant that will allow the 
Applicant to continue to lease the real property in question and 
operate the Project in the event of the

[[Page 31227]]

lessor's default under the mortgage or deed of trust. RUS will not 
obligate an Award until the Applicant submits all applicable Real 
Estate Agreements.
    u. Community Benefit Plan. The Applicant must confirm in its 
application that it will develop a Community Benefit Plan(s) through 
stakeholder engagement within the first year after the date RUS 
obligates the Award. The Agency will not advance any Award funds until 
the Awardee has developed its Community Benefit Plan(s). The Agency 
will not advance the grant portion of an Award until the Awardee 
implements its Community Benefit Plan(s).
    The Applicant must identify in its application how it will develop 
its Community Benefits Plan(s) and any initial benefits to residents 
within the service area expected beyond the Project itself, including, 
but not limited to at least one of the following:
    1. Investments in the American workforce such as local worker 
retraining and job creation;
    2. The launch or expansion of systemic or consumer-based energy 
efficiency and carbon reduction measures such as providing on-bill 
financing or Pay-as-You-Save programs to improve the energy efficiency 
and beneficial electrification for consumers;
    3. Land use agricultural integration that demonstrates ways for 
agricultural producers to benefit from clean energy projects; and
    4. Diversity, equity, inclusion and accessibility and environmental 
justice goals set forth in Executive Order 14008, Part II, Section 223, 
the Justice40 Initiative, which aims to assure that 40 percent of the 
overall benefits of certain federal investments flow to disadvantaged 
communities.
    v. Refinancing and Modifications. If the Applicant is seeking to 
refinance or modify existing debt, it must provide sufficient 
information and data to demonstrate how it will utilize the cash 
savings generated from the proposed loan refinancing or modification to 
purchase Renewable Energy, Renewable Energy Systems, Zero-Emission 
Systems, or Carbon Capture and Storage Systems; to deploy such systems; 
or to make energy efficiency improvements to electric generation and 
transmission systems.
    w. Award Type. The Applicant must specify what type of Award (loan 
only, grant only, loan/grant combination, and/or loan refinancing/
modification) it is seeking. If the Applicant is seeking more than one 
type of Award, it must clearly state the type of Award it is seeking 
for each Project and the amount of each type of Award.
    x. Non-RUS Funds. The Applicant must identify the source of any 
non-RUS funds that it intends to utilize to finance the cost of the 
proposed Project in its application.
    y. Tribal Government Resolution of Consent. For each Project that 
will be sited on Tribal Lands where a Federally Recognized Tribe has 
regulatory authority and for each Project whose service area includes 
Tribal Lands where a Federally Recognized Tribe has regulatory 
authority, certification from the appropriate Tribal official that it 
consents to or has no objection to the Project is required. The 
appropriate certification is a Tribal Government Resolution of Consent. 
The appropriate Tribal official is the Tribal Council of the Federally 
Recognized Tribe(s) with regulatory jurisdiction over the Tribal Lands 
at issue. Any Applicant that fails to provide a certification to 
provide service on the Tribal Lands identified in the application will 
not be considered for funding with respect to the infrastructure 
proposed to be constructed on Tribal Lands.
    z. Eligible Costs. The Applicant must include in its New ERA 
Application a breakdown of the estimated eligible costs listed in 
Section C.3.i for which it intends to seek reimbursement.
    aa. Additional Information. RUS reserves the right to require the 
Applicant to provide additional information or documentation in support 
of its application.
    3. System for Award Management and Unique Entity Identifier.
    i. At the time of application, each Applicant must have an active 
registration in the System for Award Management (SAM) before submitting 
its application in accordance with 2 CFR part 25. To register in SAM, 
entities will be required to obtain a Unique Entity Identifier (UEI). 
Instructions for obtaining the UEI are available at https://sam.gov/content/entity-registration.
    ii. Applicants must maintain an active SAM registration, with 
current, accurate and complete information, at all times during which 
it has an active Federal award or an application under consideration by 
a Federal awarding agency.
    iii. Applicants must ensure they complete the Financial Assistance 
General Representations and Certifications in SAM.
    iv Applicants must provide a valid UEI in its application, unless 
determined exempt under 2 CFR 25.110.
    v. The Agency will not make an Award until the Applicant has 
complied with all SAM requirements including providing the UEI. If an 
Applicant has not fully complied with the requirements by the time the 
Agency is ready to make an Award, the Agency may determine that the 
Applicant is not qualified to receive a Federal Award and use that 
determination as a basis for making a Federal Award to another 
Applicant.
    4. Submission Dates and Times.
    i. Letters of Interest. Letters of Interest can be submitted 
beginning at 11:59 p.m. ET on July 31, 2023, and until 11:59 p.m. ET on 
August 31, 2023. Letters of Interest will not be accepted after 11:59 
p.m. ET on August 31, 2023.
    ii. Eligible Entities that receive a written invitation to submit a 
full New ERA Application will have sixty (60) days from the date RUS 
sends the invitation to submit such a full New ERA Application. RUS 
reserves the right, in its sole discretion, to extend the sixty (60)-
day deadline upon the written request of the Applicant if the Applicant 
demonstrates to the satisfaction of the Administrator that exceptional 
circumstances exist to warrant the extension.
    iii. RUS also reserves the right to ask Applicants for clarifying 
information and additional verification of assertions in the LOI and 
New ERA Application.
    5. Intergovernmental Review. Executive Order (E.O.) 12372, 
``Intergovernmental Review of Federal Programs,'' is not required for 
this Program.
    6. Funding Restrictions.
    i. Projects that receive support from the PACE Program for 
construction will not be eligible for support for the direct purchase 
of power produced by that supported Project.
    ii. The Agency will only finance Commercially Available 
Technologies.
    iii. Given the statutory focus on reductions in GHG, the Agency 
will not utilize funds made available under this funding notice to: (a) 
finance new investments in new sources of fossil fueled power; or (b) 
system improvements at existing fossil fueled generation plants, 
regardless of whether such improvement is incorporated in the scoring 
of the Applicant's Portfolio of Actions, except Carbon Capture Systems 
and Energy Storage Systems.
    iv. RUS will not provide funding under this NOFO for any Project if 
construction of the Project commenced before August 16, 2022, the 
effective date of the IRA.
    7. Other Submission Requirements.
    i. The Agency will accept LOIs through an online mechanism as 
opened on or before July 31, 2023, unless otherwise indicated by the 
Agency.
    ii. By submitting the LOI, the Eligible Entity certifies to RUS 
that it has the

[[Page 31228]]

intent and ability to submit a complete New ERA Application within 
ninety (60) days of RUS emailing an Invitation to Proceed should RUS 
provide such Invitation to Proceed.
    iii. An Applicant's receipt of an invitation to submit a full New 
ERA Application is not a guaranty that the Applicant will receive an 
Award or that Awards will be offered on the same terms as the Applicant 
sought.
    iv. The Agency will accept consolidated LOIs and New ERA 
Applications from groups of Eligible Entities such as a generation and 
transmission utility and its distribution members or groups of 
distribution utilities. The Agency will score the consolidated LOIs and 
New ERA Applications by aggregating the estimated reduction in GHG 
emissions of each the Eligible Entity's Portfolio of Actions into one 
score. A consolidated LOI or New ERA Application will compete in either 
Category I, Category II, or Category III, as detailed in Section 
E.2.i.c., based on the combined TUP of the group, which will be the sum 
of the TUP of each participating Eligible Entity in the group. The 
Agency, however, reserves the right to evaluate each Eligible Entity's 
proposed Projects in order to determine the technical and Financial 
Feasibility of each Eligible Entity's proposed Project or Projects 
separately. Further, the Agency may review the Financial Feasibility of 
the New ERA Application on a disaggregated basis by conducting the 
underwriting individually for each of the individual Applicants. 
Consolidated Applicants must also be prepared to accept disaggregated 
contractual and financial commitments relating to their consolidated 
New ERA Application. Further, each Applicant in a consolidated LOI or 
New ERA Application must have an active SAM.gov registration at the 
time the consolidated LOI or New ERA Application is submitted.
    v. Wholly or jointly owned subsidiaries of cooperatives are 
included in the definition of Eligible Entity under Section 22004 of 
the IRA. The Agency, therefore, will accept a single application from a 
joint venture entity between two or more Eligible Entities. A LOI or 
New ERA Application submitted by a joint venture entity will be 
reviewed and evaluated as any other LOI or New ERA Application 
requesting a Project Award. Further, in the LOI, each owner of the 
joint venture entity must also attest to its willingness and 
demonstrate its ability to provide adequate security for their share of 
the Award as well as their performance of all related program 
commitments.
    vi. The Agency will accept only one New ERA Application per 
Applicant whether individually or as part of a consolidated 
application.
    vii. Applicants who have submitted proposals under the funding 
notice for the PACE Program may not include the same proposal or 
project for funding under this Notice. The Agency will consider 
separate, single proposals under the PACE and New ERA Programs from the 
same Applicant provided the proposed actions are separate and distinct. 
In order to receive separate PACE and New ERA Awards the Applicant must 
demonstrate to the satisfaction of the Administrator that the Applicant 
has the financial and technical ability to carry out both Awards.
    viii. For purposes of this NOFO, an electric cooperative and any 
subsidiary in which it holds a majority ownership or voting interest 
shall be considered one entity for purposes of determining the 25 
percent limitation on the grant component of a New ERA Award as 
provided in section 22004 of the IRA.

E. Letters of Interest and Application Review Information

    1. Criteria.
    i. Letters of Interest. Applicants must submit an LOI that contains 
the information required in Section D.2.i. of this Notice. The LOIs 
will be used to invite a pool of final applications that advance the 
purposes of the New ERA Program.
    RUS will review and evaluate the LOIs to determine if they are 
eligible, competitive and within the funding limits and policy 
objectives of the New ERA Program. RUS will evaluate the LOIs based on 
the criteria listed in Section C.1.iv. and E.1.ii. below. Thus, 
Eligible Entities are encouraged to consider the criteria in Section 
C.1.iv. and E.1.ii. below when preparing their LOI's. Letters of 
Interest in which the technical description of the Project(s) exceed 
1,500 words may be disregarded.
    Once RUS has reviewed and evaluated the LOIs, Eligible Entities 
will be informed if they are invited to submit a New ERA Application. 
Eligible Entities that receive an Invitation to Proceed will have sixty 
(60) days from when the date of the Invitation to Proceed is sent to 
submit a New ERA Application to RUS. In the Invitation to Proceed, the 
Agency reserves the right to: (a) suggest modifications to the proposal 
outlined in the LOI; (b) negotiate a final package of assistance with 
each Eligible Entity; and (c) update an Applicant's evaluation based on 
the full application proposal submitted. Each Eligible Entity that 
receives an Invitation to Proceed will have a General Field 
Representative (GFR) assigned to it. An Invitation to Proceed does not 
constitute an offer by the Agency, nor does it constitute approval of 
the Applicant's New ERA Application.
    ii. New ERA Application. RUS will review each New ERA Application 
based upon: (a) RUS' general underwriting requirements contained in 7 
CFR part 1710, subpart D; and (b) the Applicant's Portfolio of Actions 
using the selection criteria identified in 1 through 4 below. Each of 
the metrics in the criteria below will be generated by the Achievable 
Reductions Tool or other methods acceptable to RUS as noted above. 
Pursuant to IRA section 22004, the heaviest weight will be given to the 
reduction of GHG emissions (CO2e). Points will be awarded as 
follows:
    1. Annual tons of carbon dioxide equivalent (CO2e) 
reduced (from generation resources owned or purchased): up to 30 
points.
    2. Annual tons of CO2e avoided: up to 10 points.
    3. Percentage difference in renewable or zero-emission energy in 
the energy mix (from generation resources owned and purchased): up to 
10 points.
    4. Percentage decrease in the carbon intensity of the energy mix 
(from generation resources owned and purchased): up to 10 points.
    2. Review and Selection Process.
    i. RUS will acknowledge the receipt of LOIs and New ERA 
Applications via an email to the Applicant. After receipt of LOIs and 
New ERA Applications, RUS will take the following actions:
    a. Incomplete LOIs and applications or ineligible applications as 
of the deadline for submission will not be considered further, and the 
Applicant will be notified in writing.
    b. Letters of Interest and New ERA Applications will be reviewed 
for completeness and ranked based on the scoring criteria in E.1.ii. 
above.
    c. Applicants with complete applications will be placed into one of 
three categories based on their year ending 2022 TUP value.
    1. Category I: Applicants with a TUP value equal to or over $500 
million.
    2. Category II: Applicants with a TUP value under $500 million but 
over $200 million.
    3. Category III: Applicants with a TUP value equal to or less than 
$200 million.
    d. Applicants will then compete for Awards within their category 
and based on the evaluation of metrics that reflect achieving the 
greatest reductions in GHG emissions. RUS expects to utilize at least 
60 percent of the funds made available under this Notice for Category

[[Page 31229]]

I Applicants, up to 20 percent of funds made available under this 
Notice for Category II, and up to 20 percent of the funds made 
available under this Notice for Category III Applicants. This split in 
the value of TUP reflects the likely lower total costs for smaller 
entities to transition to Renewable Energy Systems or Zero-Emissions 
Systems and the desire to ensure that both large and small Applicants 
are able to benefit from the program while ensuring that the program 
meets its statutory requirement to achieve the greatest reduction in 
GHG.
    e. RUS will not approve a specific request for financial assistance 
if RUS determines that the requested financial assistance imposes an 
undue risk to RUS' loan portfolio in general.
    f. For the purposes of this NOFO, the Agency will apply the SUTA 
provisions of section 306F of the RE Act as it would to a program 
contained in section 306F(a)(1).
    3. Other Information.
    The Administrator shall have the authority and sole discretion, to: 
(i) Shift funding between Category I, Category II, and Category III 
Applicants, (ii) Offer financing in different amounts or on different 
terms than what the Applicant proposes in its application; (iii) Reject 
any application or any Project in an application regardless of RUS' 
evaluation of the Project that the Administrator determines is not 
eligible, feasible, securable, or executable within the timeframe of 
the Award; (iv) Add additional funding to this competition if such 
funding becomes available; and (v) Make an offer that references 
funding from other RUS programs separate from a New ERA Award.

F. Federal Award Administration Information

1. Federal Award Notices.
    i. Award Notices. Applicants will be notified of their 
application's status as follows:
    a. Applicants not selected for funding will be notified in writing.
    b. Successful Applicants will receive a Commitment Letter from the 
Administrator specifying: (i) The total amount of the Award approved by 
RUS; and (ii) Any additional controls on its financial, investment, 
operational and managerial activities; acceptable security 
arrangements; and such other conditions deemed necessary by the 
Administrator to adequately secure the Government's interest and ensure 
repayment. Upon receipt of the acceptance of the Award from the 
Awardee, RUS will begin to prepare the Award Documents with the 
assistance of the Applicant. Upon completion of the Award Documents, 
RUS will forward those documents to the Applicant.
    1. The Administrator may incorporate any applicable provisions of 2 
CFR part 200, in addition to the provisions of 2 CFR part 200 that have 
been incorporated into this NOFO, into the Award Agreement if the Award 
is comprised only of a grant.
    2. Receipt of a Commitment Letter from the Administrator does not 
authorize the Awardee to commence performance under the Award. All RUS 
requirements and Award conditions specified in the Commitment Letter 
must be met before loan or grant funds will be disbursed. Applicants 
may not commence construction on any Project until RUS provides the 
Applicant with written environmental clearance of the Projects as 
provided in 7 CFR part 1970. RUS will notify the Awardee when it is 
authorized to commence performance using New ERA funds.
    ii. Funding Disbursements and Restriction. The Agency will use all 
tools at its disposal to obligate funds in a timely manner. RUS will 
disburse funds to the Awardee in accordance with the terms of the 
executed Award Documents, this NOFO, and the applicable provisions of 7 
CFR parts 1710 through 1730, 1767, 1773, 1787, and 1970 (https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XVII).
    a. Except as related to a stranded asset loan, all Award funds will 
be disbursed as a reimbursement for Eligible Award Costs.
    b. The executed Award Agreement will contain a provision stating 
that no Award funds will be advanced after September 30, 2031. The 
Agency will set a last day for advance in the Award Agreements well in 
advance of this statutory limit. All undisbursed funds as of close of 
business on September 30, 2031, will automatically be rescinded.
    c. Unless stated otherwise in the NOFO or in the applicable Award 
Agreement, RUS will advance grant funds upon the Awardee's completion 
and testing of the Project to the satisfaction of RUS as provided in 
Section B.5.i.c. of this NOFO and the reporting of such testing to RUS.
    d. The Administrator may condition any advance on the Awardee 
meeting specific requirements prior to making any advance on an Award.
    e. 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 the Project.
    iii. Award term. Except Awards that include a loan refinancing or 
loan modification, Awards will be for a term not to exceed the lesser 
of: (a) The expected useful life of the Project: (b) The term of the 
PPA (if required for execution between the Awardee and the Off-taker): 
(c) The term of the lease for the land that the Project will occupy (if 
such land is not owned by the Awardee), (d) The expiration dates of 
power supply arrangements between the Awardee and its members should 
the Awardee provide the power supply needs of the members under such 
power supply arrangements; or (e) 35 years. The term of an Award that 
includes a loan refinancing or loan modification will be determined on 
a case-by-case basis based on the Financial Feasibility of the Award.
    iv. Interest rate. Loans made under the New ERA Program will bear 
interest per annum at the percentages specified in section B of this 
NOFO.
    v. Repayment. Except for a loan relating to loan refinancing or 
loan modification, the repayment of each advance on a loan to the 
Awardee must be fully amortized over the remaining term of the loan as 
determined in Section F.1.iii. The repayment of an advance on a loan 
relating to the refinancing or modification of an existing loan must be 
fully amortized over the term of the loan as specified in the Award 
Documents. The amortization will be premised upon equal monthly debt 
service payments over the term of the loan portion of the Award. 
Further, unless otherwise provided in the NOFO, the provisions of 7 CFR 
parts 1710 and 1714 (https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XVII), applicable to direct loans, shall apply to any loan made 
pursuant to an Award.
    vi. Prepayment. An Awardee may prepay the loan component of an 
Award, at par, at any time. All other terms under the Award Documents 
will continue for any remaining portion of the Award.
    vii. Financial ratios. The requirements for coverage ratios will be 
set forth in the Commitment Letter and the Awardee's Award Documents 
with RUS. The minimum coverage ratios required of the Awardee, whether 
applied on an annual or average basis, will be determined by the 
Administrator on case-by-case basis based on the risk profile of the 
Awardee and specific loan features. Existing RUS borrowers will be 
subject to their current financial coverage ratios contained in the 
applicable loan agreements or indentures unless otherwise determined by 
the Administrator. When new Award

[[Page 31230]]

Documents are executed, the Administrator may, on a case-by-case basis, 
increase the coverage ratio of the Awardee if the Administrator 
determines that higher ratios are required to ensure the repayment of a 
loan made by RUS. Also, the Administrator may, on a case-by-case basis, 
reduce the coverage ratios if the Administrator determines that the 
lower ratios are required to ensure the repayment of the loan made by 
RUS.
    viii. Equity requirements. As noted in Section B.5.i.b., RUS will 
require the Awardee to provide at least 25 percent equity in the 
Project for a Project Award. For System Awards, the Administrator may, 
in the Administrator's sole discretion, deem it acceptable to loan the 
full cost of the Project. The required equity position will be 
determined by the Administrator on a case-by-case basis and will be set 
forth in the Commitment Letter and the Award documents as a condition 
to the Award. As noted above, RUS may consider allowing the Awardee to 
meet the equity requirements by utilizing any grant component of the 
Award or any other grant, if permitted under applicable authorities. 
Further, RUS may consider allowing the Awardee to meet the equity 
requirement by utilizing any applicable investment tax credit or an 
elective direct payment in lieu of the investment tax credit relating 
to the Project as permitted in the Internal Revenue Code of 1986 and 
its implementing regulations. In each case, RUS must find that such 
uses of the tax benefits relating to the Project are financially 
feasible. If the Award is grant only because the Awardee is financing 
the portion of the cost of the Project not covered by the grant solely 
from a non-RUS source, the Administrator may consider waiving the 
equity requirement.
    ix. Opinion of counsel. An opinion of counsel is required at 
closing and must be acceptable to the Administrator, opining that the 
Awardee is properly organized and has the required corporate authority 
to enter into the proposed transaction. It must also identify the 
proposed collateral to secure the Award and certify that such 
collateral is free of liens or identify any issues that may arise for 
the Government regarding the securing and perfecting of a first and 
prior lien on such property comprising the collateral.
    x. The Award Documents. The Agency will provide the Awardee with 
the applicable Award Documents that the Award must execute.
    xi. Award term and conditions. The Administrator reserves the right 
to modify or waive certain requirements if the Administrator believes 
such modifications or waiver are in the best interest of the Government 
and the Administrator has determined that the loan component of any 
Award will be repaid in the designated time period and the security for 
such loan is adequate. Also, the Administrator, at their sole 
discretion, may add such terms and conditions in an Award Agreement to 
ensure the loan is timely repaid and is adequately secured. 
Additionally, as provided in 7 U.S.C. 1981(b)(4) the Administrator 
retains the right to modify the terms of any Award pursuant to the 
terms of that authority.
    xii. Reporting.
    a. Performance Reporting. RUS will establish periodic reporting 
requirements. These will be enumerated in the Award Documents.
    b. Accounting Requirements: RUS accounting requirements include 
compliance with Accounting Principles Generally Accepted in the United 
States (GAAP), as well as compliance with the requirements of the 
applicable regulations: 2 CFR part 200 subpart E, 48 CFR 31, and the 
system of accounting prescribed in 7 CFR part 1767. The Administrator 
may modify the accounting requirements if it is deemed necessary to 
satisfy the purpose of the statute.
    c. Audit Requirements: Awardees will be required to prepare and 
furnish to RUS audits as follows:
    1. Non-Federal Entities shall provide RUS with an audit pursuant to 
2 CFR part 200, subpart F. The Awardee must follow subsection 502 in 
determining federal awards expended. All RUS loans impose an ongoing 
compliance requirement for the purpose of determining federal awards 
expended during a fiscal year. In addition, the Awardee must include 
the value of new federal loans made along with any grant expenditures 
from all federal sources during the Awardee's fiscal year. Therefore, 
the audit submission requirement for this program begins in the 
Awardee's fiscal year that the loan is made and thereafter, based on 
the balance of federal loan(s) at the beginning of the audit period. 
All required audits must be submitted within the earlier of: (i) 30 
calendar days after receipt of the auditor's report; or (ii) nine 
months after the end of the Awardee's audit period; and
    2. For all other entities, Awardees shall provide RUS with an audit 
within 120 days after the as of audit date in accordance with 7 CFR 
part 1773. Note that with respect to advances that contain loan funds, 
the audit is required after an advance has been made, and, thereafter, 
from the close of each subsequent fiscal year until the loan is repaid 
in full. With respect to advances that only contain grant funds, the 
audit is required until all grant funds have been advanced or rescinded 
and all financial compliance requirements have been fully satisfied. 
While an audit is required, Awardees must also submit a report on 
compliance and internal controls over financial reporting, as well as a 
report on compliance with aspects of contractual agreements and 
regulatory requirements.
    xiii. Monitoring. Awardees must comply with all reasonable RUS 
requests to support ongoing monitoring efforts including monitoring an 
Awardee's construction progress and progress towards achieving project 
related GHG reductions. The Awardee must afford RUS, through their 
representatives, a reasonable opportunity, at all times during business 
hours and upon prior notice, to have access to and the right to inspect 
any or all books, records, accounts, invoices, contracts, leases, 
payrolls, timesheets, cancelled checks, statements, and other 
documents, electronic or paper of every kind belonging to or in 
possession of the Awardee or in any way pertaining to its property or 
business, including its parents, affiliates, and subsidiaries, if any, 
and to make copies or extracts therefrom. Failure to comply with 
reasonable RUS requests could result in a termination of the Award 
Agreement.
    2. Administrative and National Policy Requirements.
    The items listed in this Notice implement the appropriate 
administrative and national policy requirements, which include but are 
not limited to:
    i. Execution of an Award Agreement and related Award Documents;
    ii. Compliance with other applicable Federal statutes and 
regulations to include 7 U.S.C 8103, the generally applicable 
provisions of 7 CFR parts 1700 through 1730, 1767, 1773, and 1787, 1970 
or any successor regulations (https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XVII).
    iii. Except as provided in the NOFO and in the executed Award 
Documents, all other generally applicable regulations contained in 7 
CFR Chapter XVII will apply to New ERA Program Awards.
    iv. All existing RUS Electric Program bulletins apply (https://www.rd.usda.gov/resources/regulations/bulletins).
    v. Additional requirements that apply to recipients selected for 
this program can be found in the Grants and Agreements regulations of 
the Department of Agriculture codified in 2

[[Page 31231]]

CFR parts 180, 400, 415, 417, 418, 421; 2 CFR parts 25 and 170 (https://www.ecfr.gov/current/title-2); and 48 CFR 31.2 (https://www.ecfr.gov/current/title-48/chapter-1/subchapter-E/part-31/subpart-31.2), and 
successor regulations to these parts.

G. Federal Awarding Agency Contact(s)

    For general questions about this announcement, please contact the 
point of contact listed in the FOR FURTHER INFORMATION CONTACT section 
of this Notice.

H. Build America, Buy America Requirements

    Infrastructure Project Awards under this announcement must meet the 
following domestic preference requirements:
    1. Funding to Non-Federal Entities. Awardees that are Non-Federal 
Entities shall be governed by the requirements of section 70914 of the 
Build America, Buy America Act (BABAA) within the Infrastructure 
Investment and Jobs Act (IIJA), and its implementing regulations. The 
Act requires the following Buy America preference:
    i. All iron and steel used in the Project are produced in the 
United States. This means all manufacturing processes, from the initial 
melting stage through the application of coatings, occurred in the 
United States.
    ii. All manufactured products used in the Project are produced in 
the United States. This means the manufactured product was manufactured 
in the United States, and the cost of the components of the 
manufactured product that are mined, produced, or manufactured in the 
United States is greater than 55 percent of the total cost of all 
components of the manufactured product, unless another standard for 
determining the minimum amount of domestic content of the manufactured 
product has been established under applicable law or regulation.
    iii. All construction materials (excludes cement and cementitious 
materials, aggregates such as stone, sand, or gravel, or aggregate 
binding agents or additives) are manufactured in the United States. 
This means that all manufacturing processes for the construction 
material occurred in the United States.
    BABAA only applies to articles, materials, and supplies that are 
consumed in, incorporated into, or affixed to an infrastructure 
project. As such, it does not apply to tools, equipment, and supplies, 
such as temporary scaffolding, brought to the construction site and 
removed at or before the completion of the infrastructure project. Nor 
does BABAA apply to equipment and furnishings, such as movable chairs, 
desks, and portable computer equipment, that are used at or within the 
finished infrastructure project. Any requests for waiver of these 
requirements must be submitted pursuant to USDA's guidance available 
online at https://www.usda.gov/ocfo/federal-financial-assistance-policy/USDABuyAmericaWaiver.
    2. Funding to all other entities. All other Awardees shall be 
governed by the Agency's Buy American requirement at 7 CFR part 1787. 
Rural electric cooperatives, for-profit organizations, and investor-
owned utilities are not considered Non-Federal Entities. Any requests 
for waiver of these requirements must be submitted pursuant to those 
regulations.

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., 
this action meets the threshold for a major rule, as defined by 5 
U.S.C. 804(2), because it will result in an annual effect on the 
economy of $100,000,000 or more. Accordingly, the Agency will not take 
action on LOIs until sixty (60) days has lapsed from notification to 
Congress.
    2. Administrative Procedure Act Statement. This NOFO is being 
issued without advance rulemaking or public comment. The Administrative 
Procedure Act of 1946 (APA), as amended (5 U.S.C. 553), has several 
exemptions to rulemaking requirements. Among them is an exception for a 
matter relating to ``loans, grants, benefits, or contracts.''
    3. Paperwork Reduction Act. In accordance with the Paperwork 
Reduction Act of 1995 (44 U.S.C. chapter 35), USDA requested that the 
Office of Management and Budget (OMB) conduct an emergency review of a 
new information collection that contains the Information Collection and 
Recordkeeping requirements contained in this Notice.
    In addition to the emergency clearance, the regular clearance 
process is hereby being initiated to provide the public with the 
opportunity to comment under a full comment period, as the Agency 
intends to request regular approval from OMB for this information 
collection. Comments from the public on new, proposed, revised, and 
continuing collections of information help the Agency assess the impact 
of its information collection requirements and minimize the public's 
reporting burden. Comments may be submitted regarding this information 
collection through the Federal eRulemaking Portal at https://www.regulations.gov. In the ``Search for dockets and documents on 
agency actions'' box, type in the DOCKET # from this notice to submit 
or view public comments and to view supporting and related materials 
available electronically. Information on using Regulations.gov, 
including instructions for accessing documents, submitting comments, 
and viewing the docket after the close of the comment period, is 
available through the site's ``FAQ'' link. Comments on this information 
collection must be received by July 17, 2023.
    Title: Empowering Rural America (New ERA) Program.
    OMB Control Number: 0572-NEW.
    The following estimates are based on the average over the first 3 
years the program is in place.
    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 31.853 hours per response.
    Respondents: Electric cooperatives, subsidiaries of electric 
cooperatives.
    Estimated Number of Respondents: 250.
    Estimated Number of Responses per Respondent: 23.296.
    Estimated Number of Responses: 5,824.
    Estimated Total Annual Burden (hours) on Respondents: 185,514.
    Copies of this information collection may be obtained from Pamela 
Bennett, Management Analyst, Regulatory Division, RD Innovation Center, 
telephone: 202-720-9639; email: [email protected]. All responses 
to this information collection and recordkeeping notice will be 
summarized and included in the request for OMB approval. All comments 
will also become a matter of public record.
    4. National Environmental Policy Act. All recipients under this 
Notice are subject to the requirements of 7 CFR part 1970.
    5. Wage Rate Requirements. As provided in 7 U.S.C. 8103(f) all 
Projects funded under the New ERA Program, as a condition of receiving 
a grant or loan under this section, an Eligible Entity shall ensure 
that all laborers and mechanics employed by contractors or 
subcontractors in the performance of construction work financed, in 
whole or in part, with the grant or loan, as the case may be, shall be 
paid wages at rates not less than those prevailing on similar 
construction in the locality, as determined by the Secretary of Labor 
in

[[Page 31232]]

accordance with 40 U.S.C. 31, sections 3141 through 3144, 3146, and 
3147.
    6. Federal Funding Accountability and Transparency Act. All 
Applicants, in accordance with 2 CFR part 25, must be registered in SAM 
and have a UEI number as stated in Section D.3 of this notice. All 
recipients of Federal financial assistance are required to report 
information about first-tier sub-awards and executive total 
compensation in accordance with 2 CFR part 170.
    7. Civil Rights Act. All grants made under this notice are subject 
to Title VI of the Civil Rights Act of 1964 as required by the USDA in 
7 CFR part 15, subpart A (eCFR:: 7 CFR part 15 Subpart A--
Nondiscrimination in Federally-Assisted Programs of the Department of 
Agriculture--Effectuation of Title VI of the Civil Rights Act of 1964) 
and section 504 of the Rehabilitation Act of 1973, Title VIII of the 
Civil Rights Act of 1968, Title IX, Executive Order 13166 (Limited 
English Proficiency), Executive Order 11246, and the Equal Credit 
Opportunity Act of 1974.
    8. Nondiscrimination Statement. In accordance with Federal civil 
rights laws and U.S. Department of Agriculture (USDA) civil rights 
regulations and policies, the USDA, its Mission Areas, agencies, staff 
offices, employees, and institutions participating in or administering 
USDA programs are prohibited from discriminating based on race, color, 
national origin, religion, sex, gender identity (including gender 
expression), sexual orientation, disability, age, marital status, 
family/parental status, income derived from a public assistance 
program, political beliefs, or reprisal or retaliation for prior civil 
rights activity, in any program or activity conducted or funded by USDA 
(not all bases apply to all programs). Remedies and complaint filing 
deadlines vary by program or incident.
    Program information may be made available in languages other than 
English. Persons with disabilities who require alternative means of 
communication to obtain program information (e.g., Braille, large 
print, audiotape, American Sign Language) should contact the 
responsible Mission Area, agency, or staff office; the USDA TARGET 
Center at (202) 720-2600 (voice and TTY); or the 711 Relay Service.
    To file a program discrimination complaint, a complainant should 
complete a Form AD-3027, USDA Program Discrimination Complaint Form, 
which can be obtained online at https://www.usda.gov/oascr/program-discrimination-complaint-filing, from any USDA office, by calling (866) 
632-9992, or by writing a letter addressed to USDA. The letter must 
contain the complainant's name, address, telephone number, and a 
written description of the alleged discriminatory action in sufficient 
detail to inform the Assistant Secretary for Civil Rights (ASCR) about 
the nature and date of an alleged civil rights violation.
    The completed AD-3027 form or letter must be submitted to USDA by:
    (1) Mail: U.S. Department of Agriculture, Office of the Assistant 
Secretary for Civil Rights, 1400 Independence Avenue SW, Washington, DC 
20250-9410; or
    (2) Fax: (833) 256-1665 or (202) 690-7442; or
    (3) Email: [email protected].
    USDA is an equal opportunity provider, employer, and lender.

Andrew Berke,
Administrator, Rural Utilities Service, USDA Rural Development.
[FR Doc. 2023-10392 Filed 5-15-23; 8:45 am]
BILLING CODE 3410-15-P