Notice of Funding Opportunity for the Rural Energy for America Program for Fiscal Years 2025, 2026, and 2027, 83449-83455 [2024-23854]

Agencies

• DEPARTMENT OF AGRICULTURE
• Rural Business-Cooperative Service

[Federal Register Volume 89, Number 200 (Wednesday, October 16, 2024)]
[Notices]
[Pages 83449-83455]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-23854]


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DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service

[Docket No. RBS-24-BUSINESS-0015]


Notice of Funding Opportunity for the Rural Energy for America 
Program for Fiscal Years 2025, 2026, and 2027

AGENCY: Rural Business-Cooperative Service, USDA.

ACTION: Notice.

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SUMMARY: The Rural Business-Cooperative Service (RBCS or the Agency), a 
Rural Development (RD) agency of the United States Department of 
Agriculture (USDA) is issuing a Notice of Funding Opportunity (NOFO) to 
announce acceptance of grant, guaranteed loan, and combined grant and 
guaranteed loan applications under the Rural Energy for America Program 
(REAP). This notice announces the deadlines, dates, and times that 
applications must be received in order to be considered for REAP funds. 
The NOFO is being issued for Fiscal Years (FY) 2025, 2026, and 2027. 
The notice will not be applied retroactively to any applications 
previously filed. Applications received the date following the 
publication of this notice through September 30, 2027, will be 
evaluated and scored according to the provisions listed in this notice, 
unless otherwise amended via a subsequent notice.

DATES: As provided for in 7 CFR 4280.122, the Agency, by this notice, 
is decreasing the number of competitions for Renewable Energy Systems 
and Energy Efficiency Improvements (RES/EEI). The application deadline 
date and time as outlined in 7 CFR 4280.156(a) for Energy Audit and 
Renewable Energy Development Assistance (EA and REDA) remains 
unchanged. RES/EEI and Energy Efficient Equipment and systems (EEE) 
guaranteed loan applications are completed on an ongoing basis in 
accordance with 7 CFR 5001.315. See section D.4. of this notice for 
details on future RES/EEI grant competitions.

ADDRESSES: You are encouraged to contact your USDA RD State Energy 
Coordinator well in advance of the application deadline to discuss your 
project and ask any questions about the application process. Contact 
information for State Office Energy Coordinators can be found at 
rd.usda.gov/files/RBS_StateEnergyCoordinators.pdf.
    Program guidance and application forms may be obtained at 
rd.usda.gov/programs-services/all-programs/energy-programs. To submit 
an electronic application via grants.gov, follow the instructions for 
the REAP funding announcement located at www.grants.gov.

FOR FURTHER INFORMATION CONTACT: Jonathan Burns, Programs Management 
Division, RBCS, USDA, 1400 Independence Avenue SW, Mail Stop 3226, Room 
5801-S, Washington, DC 20250-3226, Phone: (774) 678-7238 or Email 
[email protected].

SUPPLEMENTARY INFORMATION:

Overview

    Federal Awarding Agency Name: USDA, Rural Business-Cooperative 
Service.
    Funding Opportunity Title: Rural Energy for America Program (REAP).
    Announcement Type: Notice of Funding Opportunity.
    Funding Opportunity Number: RDBCP-REAP-RES-EEI-2025-2026-2027.
    Assistance Listing Number: 10.868.
    Dates: As provided for in 7 CFR 4280.122, the Agency, by this 
notice, is decreasing the number of competitions for RES/EEI. The 
application deadline date and time as outlined in 7 CFR 4280.156(a) for 
EA/REDA remains unchanged. RES/EEI and EEE guaranteed loan applications 
are completed on an ongoing basis in accordance with 7 CFR 5001.315. 
See section D.4 of this notice for details on future RES/EEI grant 
competitions.
    Rural Development Key Priorities: The Agency encourages applicants 
to consider projects that will advance the following key priorities 
(more details available at www.rd.usda.gov/priority-points):
     Creating More and Better Markets: Assist rural communities 
to recover economically through more and better market opportunities 
and through improved infrastructure.
     Addressing Climate Change and Environmental Justice: 
Reduce climate pollution and increase resilience to the impacts of 
climate change through economic support for rural communities.
     Advancing Racial Justice, Place-Based Equity, and 
Opportunity: Ensure all rural residents have equitable access to RD 
programs and benefits from RD funded projects.

[[Page 83450]]

A. Program Description

    1. Purpose of the Program. The Agency provides grants, guaranteed 
loans, and combined grant and guaranteed loan combinations through the 
REAP program to help agricultural producers and rural small businesses, 
including those Tribally owned or Tribal member owned, reduce energy 
costs and consumption and helps meet the Nation's critical energy 
needs. The REAP has two types of funding assistance: RES/EEI assistance 
and EA and REDA grants.
    2. Statutory and Regulatory Authority. REAP is authorized by 
section 9007 of the Farm Security and Rural Investment Act of 2002, as 
amended, codified at 7 U.S.C. 8107 and is implemented by 7 CFR 4280 
subpart B (ecfr.gov/current/title-7/subtitle-B/chapter-XLII/part-4280#part-4280) and 7 CFR part 5001 (ecfr.gov/current/title7/subtitle-B/chapter-L/part-5001). The Inflation Reduction Act (IRA) of 2022 
provides additional authorities for REAP (Public Law 117-169, section 
22002).
    3. Definitions. The definitions applicable to this notice are 
published at 7 CFR 4280.103 and 7 CFR 5001.3. For the purpose of this 
notice only, underutilized renewable energy technologies (underutilized 
technologies) are defined as those technologies which do not produce 
greenhouse gases at the project level and make up less than 20 percent 
of the total grant dollars obligated at the end of the fiscal year, two 
(2) years previous to the current year. For example, FY 2023 award data 
will be utilized to determine which technologies are underutilized 
technologies for the FY 2025 competition.
    4. Application of Awards. The Agency will review, evaluate and 
score applications based on the provisions found in 7 CFR 4280, subpart 
B, 7 CFR 5001, and as indicated in this notice. The Agency advises all 
interested parties that the applicant bears the full burden in 
preparing and submitting an application in response to this notice 
regardless of whether or not funding is appropriated for the REAP 
program or whether or not the applicant is ultimately successful.

B. Federal Award Information

    Type of Award: Competitive grants and guaranteed loans.
    Fiscal Year Funds: FYs 2025, 2026, and 2027.
    Available Funds: The collective funding is anticipated to be at 
least $600,000,000 divided as indicated below:
    a. IRA funding--Approximately $180,000,000 per Federal FY.
    b. IRA underutilized renewable energy technology set aside 
funding--Approximately $20,000,000 per Federal FY.
    The Agency may, at its discretion, increase the total level of 
funding available in this funding round (or in any category in this 
notice) from any available source provided the awards meet the 
requirements of the statute which made the funding available to the 
Agency.
    Award Amounts: See Funding Restrictions in section E of this notice 
for minimum and maximum award amounts.
    Anticipated Award Date: State competitions will be held after the 
close of each application window as described in section D.4 of this 
notice. States with high volumes may experience delays in their ability 
to conduct competitions. Stakeholders are encouraged to contact State 
Energy Coordinators to determine estimated dates of when their 
competition will be finalized. A list of State Energy Coordinators can 
be found at rd.usda.gov/sites/default/files/RBS_StateEnergyCoordinators.pdf.
    Performance Period: Up to 24 months for grants. Guaranteed loans 
are governed by the loan terms.
    Renewal or Supplemental Awards: None.
    Type of Assistance Instrument: Grant, guaranteed loan, and grant 
and guaranteed loan combined funding.
    Approximate Number of Awards: The collective estimated number of 
awards under this notice is 6,000 based on the three FYs included in 
the notice and will depend on the actual amount of funds made available 
and on the number of eligible applicants participating in this program.

C. Eligibility Information

    1. Eligibility Requirements. Eligibility requirements for the 
applicant, borrower, lender, and project (as applicable) are clarified 
in 7 CFR part 4280, subpart B and in 7 CFR part 5001 and are summarized 
in this notice. Failure to meet the eligibility criteria by the time of 
the competition window will preclude the application from competing 
until all eligibility criteria have been met.
    2. Eligible Borrowers and Lenders. To be eligible for the 
guaranteed loan portion of the program, borrowers must meet the 
eligibility requirements in 7 CFR 5001.126 and lenders must meet the 
eligibility requirements in 7 CFR 5001.130.
    3. Eligible Projects. To be eligible for the program, a project 
must meet the eligibility requirements specified in 7 CFR 4280.113 for 
RES/EEI grant; 7 CFR 4280.150 for EA/REDA grant; 7 CFR 4280.137 for 
RES/EEI combined grant and guaranteed loan; and 7 CFR 5001.106 through 
5001.108, as applicable, for RES/EEI/EEE loan guarantees. For RES/EEI 
grants:
    a. Applicants are advised against starting construction prior to 
the Agency's completion of its environmental review process. Even if 
construction starts before the environmental review process is 
completed, the application may ultimately be determined to be 
ineligible.
    b. Only projects that have been determined by the Agency to have 
technical merit, as determined using the procedures specified in 7 CFR 
4280.117, are eligible for program funding.
    c. Pursuant to the definition of Renewable Energy System in 7 CFR 
4280.103, RES projects that include components and ancillary 
infrastructure such as flexible fuel pumps or electric vehicle charging 
stations may not be networked or utilize network management software 
that allows for payment processing as these systems include a mechanism 
for dispensing energy at retail.
    4. Cost Sharing or Matching. Matching requirements for each type of 
funding, as applicable, are outlined in 7 CFR 4280.115 (b) for RES/EEI 
grant; and 7 CFR 4280.137 for RES/EEI combined grant and guaranteed 
loan.
    5. Other:
    a. Ineligible project costs.
    i. Ineligible project costs are defined at: 7 CFR 4280.115(d) for 
RES/EEI grant and combined grant and guaranteed loans; 7 CFR 
4280.152(c) for EA/REDA grant; and 7 CFR 4280.137 (j)(5) and 5001.122 
for RES/EEI/EEE loan guarantees.
    ii. Applicants are advised to not incur project costs, prior to 
Agency acknowledgement of a complete and eligible application. Pursuant 
to 7 CFR 4280.115(c) and 7 CFR 4280.152(b), any costs incurred prior to 
your complete application date are considered ineligible project costs. 
Final Federal grant share amounts are calculated at the time of 
reimbursement and are based on the documented total eligible project 
costs. Awardees must provide evidence of costs incurred at the time of 
reimbursement. Having ineligible project costs could result in 
receiving a lower Federal grant share amount than originally requested 
or approved, or a determination that a project is ineligible.
    b. Other compliance requirements.
    i. Debarment and Suspension. According to 2 CFR parts 180 subpart C

[[Page 83451]]

and 2 CFR part 417, participants in covered transactions must verify 
that the person with whom you intend to do business is not excluded or 
disqualified. You, as a participant, may not enter into a covered 
transaction with an excluded person, unless the Federal agency for the 
transaction grants an exception. You can verify the person with whom 
you intend to do business is not excluded or disqualified by checking 
the System for Awards Management (SAM) exclusions, collecting a 
certification from that person, or adding a clause or condition to the 
covered transaction with that person.
    ii. Federal Laws and Regulations. Applicants are subject to all 
applicable Federal laws and regulations, including USDA Departmental 
Regulations. Sections D and E of this notice contain other compliance 
requirements.
    iii. Hemp Production.
    A. The Agriculture Improvement Act of 2018, Public Law 115-334, as 
amended, (the 2018 Farm Bill) requires USDA to promulgate regulations 
and guidelines to establish and administer a program for the production 
of hemp in the United States.
    B. In determining eligibility for the applicant, project or use of 
funds, any project applying for funding under the REAP program and 
proposing to produce, procure, supply or market any component of the 
hemp plant or hemp related by-products, or provide technical assistance 
related to such products, must have a valid license from an approved 
State, Tribal or Federal plan pursuant to section G of the Agricultural 
Marketing Act of 1946, as amended, to be in compliance with regulations 
published by the Agricultural Marketing Service at 7 CFR part 990, and 
meet any applicable U.S. Food and Drug Administration and U.S. Drug 
Enforcement Administration regulatory requirements. Verification of 
valid hemp licenses will occur prior to award. In addition, all 
projects proposing to use biomass feedstock from any part of the hemp 
plant must demonstrate assurance of an adequate supply of the 
feedstock.

D. Application and Submission Information

    1. Address to Request Application Package. Application materials 
may be obtained by contacting the RD Energy Coordinator for the State 
where the proposed project will be located, as identified via the 
following link: rd.usda.gov/files/RBS_StateEnergyCoordinators.pdf. In 
addition, for grant applications, applicants may obtain electronic 
grant applications for REAP from grants.gov.
    2. Content and Form of Application Submission. Applicants seeking 
to participate in this program must submit applications in accordance 
with this notice, 7 CFR part 4280 subpart B and 7 CFR part 5001, as 
applicable.
    a. Applicants must submit complete applications by the dates 
identified in section D.4., of this notice, containing all parts 
necessary for the Agency to determine applicant and project 
eligibility, to score the application, and to conduct the technical 
merit evaluation, as applicable, in order to be considered. The Agency 
encourages the applicant to reach out to their Energy Coordinator to 
determine application status. The applicant bears all risk should they 
incur project costs or commence construction activities prior to Agency 
notification of a complete and eligible application and the completion 
of an environmental review.
    b. Applicants must submit one original, hardcopy or electronic 
application to the appropriate RD Energy Coordinator for the State 
where the applicant's proposed project will be located, or for grant 
applications, submission may be via grants.gov or through other means 
identified on the Agency program website. A list of USDA RD State 
Office Energy Coordinators is available via the following link: 
rd.usda.gov/files/RBS_StateEnergyCoordinators.pdf.
    3. System for Award Management and Unique Entity Identifier.
    a. 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 sam.gov/content/entity-registration.
    b. 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.
    c. Applicants must ensure they complete the Financial Assistance 
General Certifications and Representations in SAM.
    d. Applicants must provide a valid UEI in its application, unless 
determined exempt under 2 CFR 25.110.
    e. The Agency will not make an award until the applicant has 
complied with all SAM requirements including providing the UEI. If an 
applicant has not fully complied with the requirements by the time the 
Agency is ready to make an award, the Agency may determine that the 
applicant is not qualified to receive a Federal award and use that 
determination as a basis for making a Federal award to another 
applicant.
    4. Submission Dates and Times. Grant applications, guaranteed loan-
only applications, and combined grant and guaranteed loan applications 
for financial assistance may be submitted at any time the application 
window is open and will compete accordingly based on the application 
window submission deadlines. To be considered for funds under this 
notice, complete applications must be received by the appropriate USDA 
RD State Office Energy Coordinator, regardless of postmark, or via 
www.grants.gov by 4:30 p.m. local time on the application window 
submission deadline. The complete application date is the date the 
Agency receives the last piece of information that allows the Agency to 
determine eligibility and to score, rank, and compete the application 
for funding. The Agency will not solicit or consider new scoring or 
eligibility information that is submitted after the application 
deadline. The Agency also reserves the right to ask applicants for 
clarifying information and additional verification of assertions in the 
application.
    The Agency encourages applicants to reach out to their Energy 
Coordinator to determine application status. When an application window 
closes, the next application window opens on the following day, if 
applicable. An application received after the window closing date will 
be considered with other complete applications received in the next 
application window. If the competition deadline falls on a weekend or a 
federally observed holiday, the next Federal business day will be 
considered last day for receipt of a complete application. Applications 
not funded in a given competition will rollover to the next 
competition.
    Applications will compete based upon on the dollar amount of grant 
request (set aside or unrestricted), the percent of Federal grant share 
to total project cost, or if the definition of underutilized 
technologies, as defined in section A.3. is met.
    a. RES/EEI grant applications. As provided for in 7 CFR 4280.122, 
the Agency, by this notice, is updating when applications will be 
accepted and the number of competitions for RES/EEI grant applications. 
All application deadlines listed below apply to all grants, regardless 
of the amount requested.
    i. Application window opening. The Agency will be accepting 
applications

[[Page 83452]]

between July 1 and March 31 of each year covered under this notice. 
Competition deadlines are outlined below. In order to compete for 
funding in a competition cycle outlined below, a complete application 
must be received by the Agency before the deadline. Applicants may only 
have one active application for assistance per project regardless of 
Fiscal Year.
    ii. Application window closing. The Agency will not be accepting 
applications between April 1 and June 30 of each year covered under 
this notice. If the Agency receives an application during this time, it 
will not be reviewed or processed, and the application will be 
returned.
    iii. Application deadlines.
    A. The following additional application deadlines are being 
announced for FY 2025:
    (1) December 31, 2024; and
    (2) March 31, 2025.
    B. The following application deadlines are being announced for FY 
2026:
    (1) September 30, 2025;
    (2) December 31, 2025; and
    (3) March 31, 2026.
    C. The following application deadlines are being announced for FY 
2027:
    (1) September 30, 2026;
    (2) December 31, 2026; and
    (3) March 31, 2027.
    iv. Underutilized technologies. Only projects that propose the use 
of underutilized technologies will be eligible for set aside funding. 
Any unused underutilized technology set aside funding will revert to 
the general program funds on an annual basis.
    v. National Office competition(s). National Office pooled 
competitions will be conducted on an as needed basis based on when 
projects are ready to compete. State allocated restricted funds will be 
pooled on or about June 1. Pooled restricted funds will first be used 
to fund eligible unselected requests of $20,000 or less. Any unused 
restricted funds may be made available to supplement National Office 
Reserve Account.
    A. State allocated unrestricted funds will be pooled on or about 
August 1. Pooled unrestricted funds will first be used to fund eligible 
unselected requests of more than $20,000.
    B. Applications may compete in National Office competitions 
provided it has competed in at least one State competition.
    vi. Incomplete applications. If an application is determined to not 
be a complete application according to 7 CFR 4280.103, the applicant 
will have 15 business days to complete their application otherwise 
their application will be withdrawn. If the Agency requires additional 
clarification or documentation to determine applicant or project 
eligibility, applicants will have 15 business days to provide the 
information otherwise their application will be withdrawn. Please see 
Review and Selection Process under section E.2. for additional 
information.
    b. EA/REDA grant applications. The application deadline date and 
time for the EA/REDA grants as outlined in 7 CFR 4280.156(a) remains 
unchanged. Complete applications must be received by 4:30 p.m. local 
time on January 31 of each year.
    c. RES/EEI and Energy Efficient Equipment and Systems (EEE) 
guaranteed loans. Applications are competed on an ongoing basis in 
accordance with 7 CFR 5001.315.
    5. Intergovernmental Review. REAP is not subject to Executive Order 
12372, Intergovernmental Review of Federal Programs.
    6. Funding Restrictions. The following funding limitations apply to 
applications submitted under this notice.
    a. RES/EEI grant funds. IRA funds will be available to fund 
requests that do not exceed 50 percent of total eligible project costs. 
Farm Bill funds and annual appropriated funds, if any, may become 
available to fund requests that do not exceed 25 percent of total 
eligible project costs.
    i. Maximum grant assistance. As provided for in 7 CFR 4280.115, 
modification is being made, via this notice, to increase the maximum 
grant assistance noted in 7 CFR 4280.115(a)(3). Projects receiving IRA 
grant funding are eligible for up to $1,000,000 for an RES project and 
$500,000 for an EEI project. Applicants can compete and be awarded only 
one RES grant and one EEI grant in a FY, which includes the grant 
portion of a combined funding request. Applicants may only have one 
active application for assistance per project regardless of FY.
    Entities that share common management or ownership, regardless of 
percent owned, either directly or indirectly through another entity or 
person, have an aggregated funding limit of $500,000 in EEI awards and 
$1 million in RES awards per Federal Fiscal Year.
    ii. Maximum request. As provided for in 7 CFR 4280.115, 
modification is being made, via this notice, to increase the maximum 
request noted in 7 CFR 4280.115(a)(2). The maximum request for a RES 
grant application is $1,000,000 and the maximum request for an EEI 
grant application is $500,000.
    A. Pursuant to section 22002 of the IRA, the Federal grant portion 
of a project utilizing IRA funds cannot exceed 50 percent of total 
eligible project costs. Applications submitted on or after the next 
business day following the publication of the notice are subject to the 
requirements of this notice, unless otherwise specified in a subsequent 
Federal Register notice. Projects are eligible for up to 50 percent 
Federal grant share from IRA funds if the project meets one of the 
following criteria:
    (1) Is a renewable energy system or retrofit of a renewable energy 
system that produces zero greenhouse gas emissions (carbon dioxide 
(CO2), methane (CH4), nitrous oxide 
(N2O), or fluorinated gases) at the project level;
    (2) Is located in an Energy Community as defined in 26 U.S.C. 
45(b)(11)(B), and as determined by the Department of Energy;
    (3) Is an energy efficiency improvement project; or
    (4) Is a project proposed from an eligible Tribal corporation or 
other Tribal Business entities (including Tribal agriculture 
operations) as described in 7 CFR part 4280.
    All other applications, such as biomass and biogas projects, are 
eligible for up to 25 percent Federal grant share from IRA funds. The 
Federal grant portion of a project utilizing appropriations bills, 
continuing resolutions, or supplemental appropriations bills, cannot 
exceed 25 percent of total eligible project costs. Sources of REAP 
grant funds cannot be combined to fund a project. Loan and grant 
combination applications may use IRA grant funds and mandatory Farm 
Bill loan funds to fund a project.
    B. For RES grants, the minimum request is a total project cost 
threshold of $10,000; therefore, at 25 percent funding the minimum 
grant request is $2,500, and at 50 percent funding the minimum grant 
request is $5,000. The maximum grant request is $1,000,000. For EEI 
grants, the minimum request is a total project cost threshold of 
$6,000, therefore at 25 percent funding the minimum grant request is 
$1,500 and at 50 percent funding the minimum grant request is $3,000. 
The maximum grant request is $500,000. These minimum and maximum limits 
also apply to the grant portion of a combined funding request.
    C. For RES/EEI/EEE loan guarantees or the loan guaranteed portion 
of a combined funding request, the minimum REAP guaranteed loan amount 
is $5,000, and the maximum

[[Page 83453]]

amount of a guaranteed loan to be provided to a borrower is $25 
million. REAP guaranteed loan requests and combined grant and 
guaranteed loan requests will not exceed 75 percent of total eligible 
project costs, with the portion of any grant requests under this notice 
not exceeding 25, or 50 percent of total eligible project costs, as 
applicable to the source of grant funds and grant funding provisions as 
outlined in this notice.
    iii. Disbursement. Pursuant to section 22002(c) of the IRA, the 
Secretary shall not enter into a loan agreement that may result in a 
disbursement after September 30, 2031, or a grant with an outlay after 
September 30, 2031. Applicants should plan accordingly.
    b. EA/REDA applications.
    i. Applicants may submit only one EA grant application and one REDA 
grant application in a FY. Separate applications must be submitted for 
EA funding and REDA funding. If an application is submitted for both EA 
and REDA funding or if an application's scope of work includes both EA 
and REDA activities, it will be determined ineligible for competition. 
The maximum aggregate amount of EA and REDA grant awards to any one 
recipient cannot exceed $100,000 in a FY.
    ii. Applicants that have received one or more grants under this 
program must have made satisfactory progress per 7 CFR 4280.110(a) 
before being considered for funding.
    iii. The 2018 Farm Bill mandates that the recipient of an EA grant 
must require the agricultural producer or rural small business 
receiving the energy audit to pay at least 25 percent of the cost of 
the energy audit, which shall be retained by the grantee for the cost 
of the audit.

E. Application Review Information

    1. Criteria. Unless otherwise specified in a subsequent Federal 
Register notice, all complete applications received on or after the 
next business day following the publication of this notice will be 
scored in accordance with the following.
    a. RES/EEI grant applications and RES/EEI combined grant and loan 
guarantee requests received between March 31, 2023, and September 30, 
2024, or the business day before publication of this notice whichever 
happens last will be scored according to the notice published in the 
Federal Register on March 31, 2023, at 88 FR 19239.
    b. As provided for in 7 CFR 4280.121, the Agency, by this notice, 
is updating RES/EEI grants and RES/EEI combined grant and loan 
guarantee scoring criteria. Applications submitted on or after the next 
business day following the publication of the notice will be scored 
based on the criteria identified below.
    i. Existing business and size of request, 7 CFR 4280.121(e) and (g) 
will be removed from the scoring criteria.
    ii. Project is located in a Disadvantaged Community or a Distressed 
Community (15 points will be added). A Disadvantaged Community will be 
determined by the Agency by using the Council on Environmental 
Quality's Climate and Economic Justice Screening Tool (which is 
incorporated into the USDA look-up map) which identifies communities 
burdened by climate change and environmental injustice. Additionally, 
all communities within the boundaries of federally recognized Tribes 
and Alaska Native Villages will also be determined to be Disadvantaged 
Communities by the Agency. Distressed Community will be determined by 
the Agency by using the Economic Innovation Group's Distressed 
Communities Index (which is incorporated into the USDA look-up map), 
which uses several socio-economic measures to identify communities with 
low economic wellbeing. To determine if your project is located in a 
Disadvantaged Community or a Distressed Community, please use the 
following USDA look-up map: ruraldevelopment.maps.arcgis.com/apps/webappviewer/?id=4acf083be4c44bb7864d90f97de0c788. Points 
will be awarded if any portion of the project site is located within a 
disadvantaged or distressed communities.
    iii. Environmental benefits, 7 CFR 4280.121(a) is being increased 
to a maximum of 10 points, and points will be awarded as follows: All 
projects which do not produce greenhouse gases at the project level 
will be awarded five (5) points and may be considered for up to a 
maximum of 10 points. Applicants must provide a detailed narrative or 
analysis to support additional environmental benefits. One point will 
be awarded for each of the five sub-criteria for documented 
environmental benefit supported by the project. Each additional benefit 
must be directly attributable to the RES/EEI project and assessed at 
the project level; (1) does not convert farmland; (2) does not 
contribute to deforestation or addresses fire hazards on forest lands; 
(3) documented water conservation; (4) complies with EPA's renewable 
fuel standards; and (5) at least 25 percent of project components are 
biobased.
    iv. Commitment of funds, 7 CFR 4280.121(c) is being decreased to a 
maximum of 10 points.
    v. State Director and Administrator priority points, 7 CFR 
4280.121(h) have been modified as shown in item F.1.e. below.
    vi. The remaining scoring criteria, energy generated, replaced or 
saved; previous grantees and borrowers; and simple payback, 7 CFR 
4280.121 (b), (d), and (f), respectively, remain as stated in the 
regulation.
    c. EA/REDA grants will be scored based on 7 CFR 4280.155.
    d. RES/EEI/EEE guaranteed loans will be scored based on 7 CFR 
5001.319 and item F.1.e. below.
    e. State Director or Administrator priority points are found in 7 
CFR 4280.121(h), 4280.137(h), and 5001.319(g). For the purposes of this 
notice, the State Director or Administrator at their discretion may 
award up to 10 priority points maximum. The maximum of 5 points will be 
awarded for projects which meets the following criterion:
    Ensuring all rural residents have equitable access to RD programs 
and benefits from RD funded projects. Using the Social Vulnerability 
Index (SVI) Look-Up Map (available at rd.usda.gov/priority-pointsrd.usda.gov/priority-points), an applicant would receive priority 
points:
     The project is located in or serving a community with 
score 0.75 or above on the SVI;
     The applicant is a federally recognized Tribe, including 
Tribal instrumentalities and entities that are wholly owned by Tribes; 
or
     Is a project where at least 50 percent of the project 
beneficiaries are members of federally recognized Tribes and non-Tribal 
applicants include a Tribal Resolution of Consent from the Tribe or 
Tribes that the applicant is proposing to serve.
     The application is from or benefiting a Rural Partner's 
Network's (RPN) community network. Currently RPN Networks exist in 
Alaska, Arizona, Georgia, Kentucky, Mississippi, Nevada, New Mexico, 
North Carolina, Puerto Rico, West Virginia and Wisconsin. Use the 
Community Look-Up map (available at rd.usda.gov/priority-pointsrd.usda.gov/priority-points) to determine if your project 
qualifies for priority points.
    Up to an additional 5 points may be awarded based on the following 
criteria:
    i. Selecting the application helps achieve geographic diversity, 
which may include points based upon the size of the funding request;
    ii. The applicant is a member of an unserved or underserved 
population.
    A. Owned by a veteran, including but not limited to individuals as 
sole

[[Page 83454]]

proprietors, members, partners, stockholders, etc., of not less than 20 
percent. To receive points, applicants must provide a statement in 
their application to indicate that owners of the project have veteran 
status; or
    B. Owned by a member of a socially disadvantaged group, which are 
groups whose members have been subjected to racial, ethnic, or gender 
prejudice because of their identity as members of a group without 
regard to their individual qualities. To receive points, the 
application must include a statement in their application to indicate 
that the owners of the project are members of a socially disadvantaged 
group;
    iii. The proposed project is in a federally declared major disaster 
area. Declarations must be within the last 2 calendar years; or
    iv. The proposed project is located in
    A. An area where 20 percent or more of its population is living in 
poverty over the last 30 years, as defined by the United States Census 
Bureau, or
    B. An area that has experienced long-term population decline, or 
loss of employment.
    Except for veteran and socially disadvantaged group status, all 
other priority points are based upon project location specific criteria 
which will be documented automatically by the Agency. State Director or 
Administrator priority points for a REAP application cannot exceed 10 
points total.
    2. Review and Selection Process. Each application will be reviewed 
for completeness. If an application does not meet the definition of 
complete application, according to 7 CFR 4280.103, the Agency will send 
a notification identifying those parts of the application that are 
incomplete, and no further action will be taken on the application.
    The Agency will give 15 business days for applicants to provide the 
missing documentation. The application will be withdrawn, and the 
applicant notified if the required documentation is not received within 
the 15 business days or if the information submitted by the deadline is 
insufficient.
    Application processing will continue if all documentation is 
received timely and is sufficient to meet the definition of a complete 
application.
    Once an application is deemed complete, the Agency will review for 
applicant and project eligibility as well as for financial and 
technical feasibility. If the Agency requires additional clarification 
or documentation, the Agency will send a notification and give a second 
15 business day window for the applicant to provide the information 
needed for applicant and project eligibility and financial and 
technical feasibility.
    The application will be withdrawn, and the applicant notified if 
the required information is not received within the 15 business days or 
if the information submitted by the deadline is insufficient.
    Application processing will continue if all information is received 
timely and is sufficient for determining applicant and project 
eligibility as well as for financial and technical feasibility. The 
applicant will then receive a notification of the eligibility review 
outcome.

F. Federal Award Administration Information

1. Federal Award Notices

    a. Each applicant and/or lender, as applicable, will be notified of 
the Agency's decision on their application.
    b. If selected for funding, applicants will receive a notification 
from the Agency via postal service or email. Selection notification 
does not ensure grant approval. If selected, a Letter of Conditions 
will be prepared establishing conditions that must be agreed to by the 
applicant before any obligation of funds can occur. Letters of 
Condition will be sent with Form RD 1942-46, ``Letter of Intent to Meet 
Conditions'', and Form RD 1940-1, ``Request for Obligation of Funds.'' 
Applicants must complete, sign, and return Form RD 1942-46 and RD 1940-
1 if they accept the conditions of the grant.
    c. If not selected for funding, a notification will be provided via 
postal service or email and will include any review and or appeal 
rights.

2. Administrative and National Policy Requirements

    a. Additional Requirements.
    i. Additional requirements that apply to applicants selected for a 
program award can be found in 7 CFR part 4280, subpart B, or 7 CFR part 
5001; the Grants and Agreements regulations of the Department of 
Agriculture codified in 2 CFR parts 180, 200, 400, 415, 417, 418, 421; 
2 CFR part 25, and successor regulations to these parts. The following 
additional completed documents are required for Applicants selected for 
a program award:
    A. RD 4280-2, ``Financial Assistance Agreement.''
    B. Form RD-400-4, ``Assurance Agreement.''
    C. Form RD-400-1 ``Equal Opportunity Agreement.''
    D. SF LLL, ``Disclosure of Lobbying Activities,'' if applicable.
    b. Build America, Buy America Act. Funding to Non-Federal Entities. 
Awardees that are Non-Federal Entities, defined pursuant to 2 CFR 200.1 
as any State, local government, Indian Tribe, Institution of Higher 
Education, or nonprofit organization, shall be governed by the 
requirements of section 70914 of the Build America, Buy America Act 
(BABAA) within the IIJA. Any requests for waiver of these requirements 
must be submitted pursuant to USDA's guidance available online at 
usda.gov/ocfo/federal-financial-assistance-policy/USDABuyAmericaWaiver.
    c. Geospatial Data. Awardee, and any and all contracts entered into 
by the Awardee with respect to the Award, shall ensure that geospatial 
data required to be collected and provided to the agency, conforms with 
the requirements of USDA Department Regulation DR-3465-001 and the 
Geospatial Metadata Standards set forth in DM 3465-001, which can be 
obtained online at usda.gov/directives/dr-3465-001andusda.gov/directives/dm-3465-001.
    d. Transparency Act Reporting. All recipients of Federal financial 
assistance are required to report information about first-tier 
subawards and executive compensation in accordance with 2 CFR part 170. 
If an applicant does not have an exception pursuant to 2 CFR 170.105, 
the applicant must then ensure that they have the necessary processes 
and systems in place to comply with the reporting requirements to 
receive funding.
    e. Race, ethnicity, and gender. The Agency is requesting that each 
applicant provide race, ethnicity, and gender information about the 
applicant. The information will allow the Agency to evaluate its 
outreach efforts to underserved and under-represented populations. 
Applicants are encouraged to furnish this information with their 
application but are not required to do so. An applicant's eligibility 
or the likelihood of receiving an award will not be impacted by 
furnishing or not furnishing this information.
    3. Reporting. The Agency will service RES and EEI grants in 
accordance with 7 CFR 4280.124 and 2 CFR part 400. The following will 
be required, as indicated in the Financial Assistance Agreement, and 
specified at 7 CFR 4280.124(i):
    a. An SF-425, ``Federal Financial Report,'' and a project 
performance report will be required on a semiannual basis (due 30 
working days after end of the semiannual period) between grant approval 
and completion (i.e., construction) of the project. For the purposes of 
this grant, semiannual

[[Page 83455]]

periods end on June 30 and December 31 of each year. The project 
performance reports shall include the elements prescribed in the 
Financial Assistance Agreement.
    b. Form RD 4280-3D, `Annual Outcome Project Performance 
Certification' as outlined in 7 CFR 4280.124(i)(3), must be provided by 
grantee once the project has been constructed.
    c. A final project and financial status report must be provided 
within 120 days after the expiration or termination of the grant as 
outlined in 7 CFR 4280.124(i)(2)(ii).

G. Federal Awarding Agency Contacts

    For general questions about this announcement, please contact 
Jonathan Burns at [email protected] or (774) 678-7238. The Agency 
website also provides up to date contact information at rd.usda.gov/programs-services/energy-programs/rural-energy-america-program-renewable-energy-systems-energy-efficiency-improvement-guaranteed-loans.

H. Other Information

    1. Paperwork Reduction Act. In accordance with the Paperwork 
Reduction Act of 1995, the information collection requirements 
associated with the programs, as covered in this notice, have been 
approved by the Office of Management and Budget (OMB) under OMB Control 
Number 0570-0067.
    2. National Environmental Policy Act. All recipients under this 
notice are subject to the requirements of 7 CFR part 1970.
    3. 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.
    4. 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 7 
CFR part 15, subpart A 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.
    5. Equal Opportunity for Religious Organizations.
    a. Faith-based organizations may apply for this award on the same 
basis as any other organization, as set forth at, and subject to the 
protections and requirements of, this part and any applicable 
constitutional and statutory requirements, including 42 U.S.C. 2000bb 
et seq. USDA will not, in the selection of recipients, discriminate for 
or against an organization on the basis of the organization's religious 
character, motives, or affiliation, or lack thereof, or on the basis of 
conduct that would not be considered grounds to favor or disfavor a 
similarly situated secular organization.
    b. A faith-based organization that participates in this program 
will retain its independence from the Government and may continue to 
carry out its mission consistent with religious freedom and conscience 
protections in Federal law. Religious accommodations may also be sought 
under many of these religious freedom and conscience protection laws.
    c. A faith-based organization may not use direct Federal financial 
assistance from USDA to support or engage in any explicitly religious 
activities except when consistent with the Establishment Clause of the 
First Amendment and any other applicable requirements. An organization 
receiving Federal financial assistance also may not, in providing 
services funded by USDA, or in their outreach activities related to 
such services, discriminate against a program beneficiary or 
prospective program beneficiary on the basis of religion, a religious 
belief, a refusal to hold a religious belief, or a refusal to attend or 
participate in a religious practice.
    6. Signage. The Awardee is encouraged to display USDA standard 
infrastructure investment signage, available for download from the 
Agency, during construction of the project. Expenditures for such 
signage shall be a permitted eligible cost of IRA funded projects.
    7. Nondiscrimination Statement. In accordance with Federal civil 
rights law and USDA civil rights regulations and policies, the USDA, 
its Agencies, offices, and employees, and institutions participating in 
or administering USDA programs are prohibited from discriminating based 
on race, color, national origin, religion, sex, gender identity 
(including gender expression), sexual orientation, disability, age, 
marital status, family/parental status, income derived from a public 
assistance program, political beliefs, or reprisal or retaliation for 
prior civil rights activity, in any program or activity conducted or 
funded by USDA (not all bases apply to all programs). Remedies and 
complaint filing deadlines vary by program or incident. Program 
information may be made available in languages other than English.
    Persons with disabilities who require alternative means of 
communication to obtain program information (e.g., Braille, large 
print, audiotape, American Sign Language) should contact the 
responsible Mission Area, agency, or staff office; or the 711 Relay 
Service.
    To file a program discrimination complaint, a complainant should 
complete a Form AD3027, USDA Program Discrimination Complaint Form, 
which can be obtained online at https://www.usda.gov/sites/default/files/documents/ad-3027.pdf, from any USDA office, by calling (866) 
632-9992, or by writing a letter addressed to USDA. The letter must 
contain the complainant's name, address, telephone number, and a 
written description of the alleged discriminatory action in sufficient 
detail to inform the Assistant Secretary for Civil Rights (ASCR) about 
the nature and date of an alleged civil rights violation.
    The completed AD-3027 form or letter must be submitted to USDA by:
    (i) Mail: U.S. Department of Agriculture, Office of the Assistant 
Secretary for Civil Rights, 1400 Independence Avenue SW, Washington, DC 
20250-9410; or
    (ii) Fax: (833) 256-1665 or (202) 690-7442; or
    (iii) Email: [email protected].
    USDA is an equal opportunity provider, employer, and lender.

Kathryn E. Dirksen Londrigan,
Administrator, Rural Business-Cooperative Service, USDA, Rural 
Development.
[FR Doc. 2024-23854 Filed 10-15-24; 8:45 am]
BILLING CODE 3410-XY-P