Notice of Funding Opportunity for Section 313A Guarantees for Bonds and Notes Issued for Utility Infrastructure Purposes for Fiscal Year (FY) 2025, 85148-85152 [2024-24930]

Agencies

• DEPARTMENT OF AGRICULTURE
• Rural Utilities Service

[Federal Register Volume 89, Number 207 (Friday, October 25, 2024)]
[Notices]
[Pages 85148-85152]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-24930]


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DEPARTMENT OF AGRICULTURE

Rural Utilities Service

[Docket No.: RUS-24-ELECTRIC-0032]


Notice of Funding Opportunity for Section 313A Guarantees for 
Bonds and Notes Issued for Utility Infrastructure Purposes for Fiscal 
Year (FY) 2025

AGENCY: Rural Utilities Service, USDA

ACTION: Notice.

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SUMMARY: The Rural Utilities Service (RUS or the Agency), a Rural 
Development agency of the United States Department of Agriculture 
(USDA), announces the acceptance of applications under the Guarantees 
for Bonds and Notes Issued for Utility Infrastructure Purposes Program 
(the 313A Program) for Fiscal Year (FY) 2025. This notice is being 
issued in order to allow applicants sufficient time to prepare and 
submit their applications and give the Agency time to process 
applications within FY 2025. In FY 2024, Congress appropriated $900 
million for the 313A Program. Because full-year appropriations have not 
been enacted as of this date, the final amount that will be made 
available in FY 2025 will be determined by subsequent Congressional 
action. The agency is accepting applications up to the amount made 
available in FY 2024, subject to Congressional action. The purpose of 
the 313A Program is to guarantee loans to selected applicants as a 
Guaranteed Lender. Successful applications will be selected by the 
Agency for funding and subsequently awarded to the extent that funding 
may ultimately be made available through apportionment. All applicants 
are responsible for all expenses incurred in developing their 
applications.

DATES: Completed applications must be electronically received by RUS no 
later than 5 p.m. Eastern Time (ET) on December 24, 2024. Applicants 
intending to submit applications must have their applications received 
by the closing deadline.

ADDRESSES: Completed applications must be submitted electronically to 
Amy McWilliams, Branch Chief, Policy and Outreach Branch, Office of 
Customer Service and Technical Assistance, Electric Program, RUS at 
[email protected].

FOR FURTHER INFORMATION CONTACT: Amy McWilliams, Branch Chief, Policy 
and Outreach Branch, Office of Customer Service and Technical 
Assistance, Electric Program, Rural Utilities Service, USDA, 1400 
Independence Avenue SW, Mail Stop 1560, Room 4121-South, Washington, DC 
20250-1560, by email at [email protected], or call (202) 205-
8663.

SUPPLEMENTARY INFORMATION:

Overview

    Federal Awarding Agency Name: Rural Utilities Service.
    Funding Opportunity Title: Notice of Funding Opportunity (NOFO) for 
Section 313A Guarantees for Bonds and Notes Issued for Utility 
Infrastructure Purposes for Fiscal Year (FY) 2025.
    Announcement Type: Notice of Funding Opportunity.
    Assistance Listing: 10.850.
    Dates: Completed applications must be received by RUS no later than 
5:00 p.m. Eastern Time (ET) on December 24, 2024.
    Rural Development Key Priorities: The Agency encourages applicants 
to consider projects that will advance the following key priorities 
(more details available at rd.usda.gov/priority-points):
     Addressing Climate Change and Environmental Justice--
Reducing

[[Page 85149]]

climate pollution and increasing resilience to the impacts of climate 
change through economic support to rural communities.
     Advancing Racial Justice, Place-Based Equity, and 
Opportunity--Ensuring all rural residents have equitable access to RD 
programs and benefits from RD funded projects.
     Creating More and Better Market Opportunities--Assisting 
rural communities recover economically through more and better market 
opportunities and through improved infrastructure.

A. Program Description

    1. Purpose of the Program. The purpose of the 313A Program is to 
guarantee loans to selected applicants (each referred to as the 
``Guaranteed Lender'' in this NOFO). The proceeds of the guaranteed 
loan are to be used (a) to make utility infrastructure loans, or (b) to 
refinance bonds or notes issued for such purposes to a borrower that 
has at any time received, or is eligible to receive, a loan under the 
Rural Electrification Act of 1936, as amended (RE Act). Each applicant 
must provide a statement on how it proposes to use the proceeds of the 
guaranteed bonds, and the financial benefit it anticipates deriving 
from participating in the program pursuant to 7 CFR 1720.6(a)(3), or 
its equivalent in any subsequent regulation. Objectives may include, 
but are not limited to the annual savings to be realized by the 
ultimate borrower(s) as a result of the applicant's use of lower cost 
loan funds provided by the Federal Financing Bank (FFB) and guaranteed 
by RUS.
    The Agriculture Improvement Act of 2018 (2018 Farm Bill) modified 
the 313A Program by amending the RE Act to allow proceeds of guaranteed 
bonds awarded under this NOFO to be used to make broadband loans, or to 
refinance broadband loans made to a borrower that has received, or is 
eligible to receive, a broadband loan under Title VI of the RE Act.
    The 2018 Farm Bill has also modified the 313A Program to allow the 
proceeds of guaranteed loans made under this NOFO to be used by the 
Guaranteed Lender to fund projects for the generation of electricity.
    2. Statutory and Regulatory Authority. The 313A Program is 
authorized by Section 313A of the Rural Electrification Act of 1936, as 
amended (7 U.S.C. 940c-1), and is implemented by regulations located at 
7 CFR part 1720. The Administrator of RUS (the Administrator) has been 
delegated responsibility for administering the 313A Program.
    3. Definitions. The definitions applicable to this NOFO are 
currently published at 7 CFR 1720.3.
    4. Application of Awards. RUS will review and evaluate applications 
received in response to this NOFO based on the regulations at 7 CFR 
1720.7, and as provided in this NOFO.

B. Federal Award Information

    Type of Awards: Guaranteed Loans.
    Fiscal Year Funds: FY 2025.
    Anticipated Available Funds: $900,000,000. Should additional 
funding become available this FY, RUS reserves the right to increase 
the total funds available under this notice.
    Award Amounts: RUS anticipates making multiple guarantees under 
this NOFO. The number, amount, and terms of awards under this NOFO will 
depend in part on the number of eligible applications and the amount of 
funds requested and the final amount appropriated by Congress. In 
determining whether to make an award, RUS will take overall program 
policy objectives into account.
    Anticipated Award Date: Awards will be made on or before September 
30, 2025, but no earlier than December 24, 2024.
    Performance Period: The RE Act provides that loans guaranteed under 
this program cannot exceed 30 years in length.
    Renewal or Supplemental Awards: N/A.
    Type of Assistance Instrument: The type of assistance is in the 
form of an RUS FFB Guaranteed Loan and is supported by a perfected lien 
on collateral sufficient to provide for full loan security.

C. Eligibility Information

    1. Eligible Applicants. To be eligible to participate in the 313A 
Program or receive a guarantee, a Guaranteed Lender must meet the 
eligibility criteria specified in 7 CFR 1720.5.
    2. Cost Sharing or Matching. There is no requirement for cost 
sharing or matching; however, borrowers must provide sufficient 
unencumbered collateral to secure loan guarantees made under this 
program.
    3. Other. Applications will only be accepted from lenders that 
serve rural areas as defined in 7 CFR 1710.2(a).

D. Application and Submission Information

    1. Address to Request Application Package. All applications must be 
prepared and submitted in accordance with this NOFO and 7 CFR part 1720 
(ecfr.gov/current/title-7/subtitle-B/chapter-XVII/part-1720).
    2. Content and Form of Application Submission. In addition to the 
required application specified in 7 CFR 1720.6, all applicants must 
submit the following additional required documents and materials:
    a. Restrictions on Lobbying. Applicants must comply with the 
requirements relating to restrictions on lobbying activities (See 2 CFR 
part 418). This form is available at gsa.gov/forms-library/disclosure-lobbying-activities.
    b. Uniform Relocation Act assurance statement. Applicants must 
comply with 49 CFR part 24, which implements the Uniform Relocation 
Assistance and Real Property Acquisition Policies Act of 1970, as 
amended. (See 7 CFR 1710.124.) This form (Assurances Required by 49 CFR 
2.2(a)) is available at rd.usda.gov/resources/directives/electric-sample-documents.
    c. Federal debt delinquency requirements. This report indicates 
whether the applicants are delinquent on any Federal debt (See 7 CFR 
1710.126 and 7 CFR 1710.501(a) (12)). This form (the Federal Debt 
Delinquency Certification) is available at rd.usda.gov/directives/federal-debt-delinquency-certification.
    d. Form RD 400-4, Assurance Agreement. Applicants must submit a 
non-discrimination assurance commitment to comply with certain 
regulations on non-discrimination in program services and benefits and 
on equal employment opportunity as set forth in 7 CFR part 15, 12 CFR 
part 202, 7 CFR part 1901 Subpart E, DR 4300-003, DR 4330-0300, and DR 
4330-005. This form is available at rd.usda.gov/directives/compliance-assurance-rd-form-400-4-nov-2017.
    e. Articles of Incorporation and Bylaws. See 7 CFR 1710.501(b)(1). 
These are required if either document has been amended since the last 
loan application was submitted to RUS, or if this is the applicant's 
first application for a loan under the RE Act.
    f. Pro forma financial statements including cash flow projections 
and assumptions. Each applicant must include five-year pro forma income 
statements, balance sheets and cash flow projections or business plans 
and clearly state the assumptions that underlie the projections, 
demonstrating that there is reasonable assurance that the applicant 
will be able to repay the guaranteed loan in accordance with its terms 
(See 7 CFR 1720.6(a)(4)).
    g. Pending litigation statement. A statement from the applicant's 
counsel listing any pending litigation, including levels of related 
insurance coverage and the potential effect on the applicant, must be 
submitted to RUS.

[[Page 85150]]

    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 (ecfr.gov/current/title-2/subtitle-A/chapter-I/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. Applicant 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. Applicant must ensure it completes the Financial Assistance 
General Certifications and Representations in SAM.
    d. Applicant 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. To be considered, applications must 
be submitted no later than 5:00 p.m. Eastern Time (ET) on December 24, 
2024.
    5. Funding Restrictions. Funds from loans guaranteed under this 
program may only be used in accordance with this notice, the program 
regulations, and the RE Act.
    6. Other Submission Requirements. Each applicant is required to 
submit such other application documents and submissions deemed 
necessary by the Secretary for evaluation of applications.

E. Application Review Information

    1. Criteria. Each application will be reviewed by the Secretary to 
determine whether it is eligible under 7 CFR 1720.5, the information 
required under 7 CFR 1720.6 is complete, and the proposed guaranteed 
bond complies with applicable statutes and regulations. The Secretary 
can at any time reject an application that fails to meet these 
requirements.
    2. Review and Selection Process. Applications will be subject to a 
substantive review, on a competitive basis, by the Administrator based 
upon the evaluation factors listed in 7 CFR 1720.7(b). The 
Administrator may limit the number of guarantees made to a maximum of 
five per year, to ensure a sufficient examination is conducted of 
applicant requests. RUS will notify the applicant in writing of the 
Administrator's approval or denial of an application. Approvals for 
guarantees will be conditioned upon compliance with 7 CFR 1720.4 and 7 
CFR 1720.6. The Administrator reserves the discretion to approve an 
application for an amount that is less than the applicant's request.
    Before an award decision is made by the Administrator, the 
Administrator shall request that FFB review the rating agency 
determination required by 7 CFR 1720.5(b)(2) as to whether the bond or 
note to be issued would receive an investment grade rating without 
regard to the guarantee.

F. Federal Award Administration Information

    1. Federal Award Notices. RUS will send a commitment letter to an 
applicant once the guaranteed loan has been approved. Applicants must 
accept and commit to all terms and conditions of the guaranteed loan 
which are requested by RUS and FFB before the loan guarantee award can 
be obligated.
    The requirements under 7 CFR 1720.8 must be met by the applicant 
prior to the endorsement of a guarantee by the Administrator. Each 
Guaranteed Lender will be required to enter into a Guarantee Agreement 
with RUS that contains the provisions described in 7 CFR 1720.8 
(Issuance of the Guarantee), 7 CFR 1720.9 (Guarantee Agreement), and 7 
CFR 1720.12 (Reporting Requirements). The Guarantee Agreement will also 
obligate the Guaranteed Lender to pay, on a semi-annual basis, a 
guarantee fee equal to 30 basis points (0.30 percent) of the 
outstanding principal amount of the guaranteed loan (See 7 CFR 
1720.10).
    2. Administrative and National Policy Requirements. Applicants must 
accept and commit to all terms and conditions of the guaranteed loan 
which are requested by RUS and FFB as follows:
    a. Compliance conditions. In addition to the standard conditions 
placed on the 313A Program or conditions requested by RUS to ensure 
loan security and statutory compliance, applicants must comply with the 
following conditions:
    (1) Each Guaranteed Lender selected under the 313A Program will be 
required to post collateral for the benefit of RUS in an amount at 
least equal to the aggregate amount of loan advances made to the 
Guaranteed Lender under the 313A Program.
    (2) The pledged collateral (the Pledged Collateral) shall consist 
of outstanding notes or bonds payable to the Guaranteed Lender (the 
Eligible Instruments) and shall be placed on deposit with a collateral 
agent for the benefit of RUS. To be deemed Eligible Instruments that 
can be pledged as collateral, the notes or bonds to be pledged (i) 
cannot be classified as non-performing, impaired, or restructured under 
generally accepted accounting principles; special mention loans as 
defined by the Office of the Comptroller of the Currency; or any other 
elevated risk categories used by the Guaranteed Lender, (ii) must be 
free and clear of all liens other than the lien created for the benefit 
of RUS, (iii) cannot be comprised of more than 30 percent of bonds or 
notes from generation and transmission borrowers, (iv) cannot have more 
than 5 percent of bonds and notes be from any one particular borrower 
and (v) cannot be unsecured notes.
    (3) The Guaranteed Lender will be required to place a lien on the 
Pledged Collateral in favor of RUS (as secured party) at the time that 
the Pledged Collateral is deposited with the collateral agent. RUS will 
have the right, in its sole discretion, within 14 business days of the 
Guaranteed Lender's written request to pledge Pledged Collateral, to 
reject any of the Pledged Instruments and require the Guaranteed Lender 
to substitute other Pledged Instruments as collateral with the 
collateral agent. Prior to receiving any advances under the 313A 
Program, the Guaranteed Lender will be required to enter into a pledge 
agreement, satisfactory to RUS, with a banking institution serving as 
collateral agent.
    (4) The Guaranteed Lender will be required to agree not to take any 
action that would have the effect of reducing the value of the pledged 
collateral below the level described above.
    (5) Applicants must certify to the RUS, the portion of their loan 
portfolio that is:
    i. Refinanced RUS debt;
    ii. Debt of borrowers for whom both RUS and the applicants have 
outstanding loans; and
    iii. Debt of borrowers for whom both RUS and the applicant have 
outstanding concurrent loans pursuant to Section 307 of the RE Act, and 
the amount of Eligible Loans.
    b. Schedule of Loan Repayment: The amortization method for the 
repayment of the guaranteed loan shall be repaid by the Guaranteed 
Lender: (i) in periodic installments of principal and interest,

[[Page 85151]]

(ii) in periodic installments of interest and, at the end of the term 
of the bond or note, as applicable, by the repayment of the outstanding 
principal, or (iii) through a combination of the methods described in 
(i) and (ii) above. The amortization method will be agreed to by RUS 
and the Guaranteed Lender.
    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 https://www.usda.gov/directives/dr-3465-001.
    3. Compliance with Federal Laws. Applicants must comply with all 
applicable Federal laws and regulations.
    a. The loan guarantee will be subject to the provisions contained 
in the appropriations act for FY 2025, once enacted by Congress. Prior 
appropriations acts have included prohibitions against RUS making 
awards to applicants having corporate felony convictions within the 
past 24 months or to applicants having corporate federal tax 
delinquencies. It is possible that such provisions will be included in 
the appropriations act for FY 2025.
    b. An authorized official within your organization must execute, 
date, and return the loan commitment letter to RUS within 14 calendar 
days from the date of the letter, otherwise the commitment will be 
voided.
    4. Reporting. Guaranteed Lenders are required to comply with the 
financial reporting requirements and Pledged Collateral review and 
certification requirements set forth in 7 CFR 1720.12.

G. Federal Awarding Agency Contact(s)

    For general questions about this announcement, please contact the 
USDA Rural Development contact provided in the ADDRESSES section of 
this notice.

H. Other Information

    1. Paperwork Reduction Act. Under the Paperwork Reduction Act (44 
U.S.C. 3501 et seq.), OMB must approve all ``collection of 
information'' as a requirement for ``answers to identical questions 
posed to, or identical reporting or recordkeeping requirements imposed 
on, ten or more persons'' (44 U.S.C. 3502(3)(A)). RUS has concluded 
that the reporting requirements contained in this funding announcement 
will involve fewer than 10 persons and do not require approval under 
the provisions of the Act.
    2. National Environmental Policy Act. In accordance with 7 CFR 
1970.53(a)(7), any proceeds to be used to refinance bonds or notes 
previously issued by the Guaranteed Lender for RE Act purposes are 
classified as categorical exclusions. However, for any new projects 
using 313A Program funds, applicants must consult with RUS and comply 
with the Agency regulations at 7 CFR part 1970.
    3. Federal Funding Accountability and Transparency Act. All 
applicants, in accordance with 2 CFR part 25 (ecfr.gov/current/title-2/part-25), must be registered in SAM and have an 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 (ecfr.gov/current/title-2/part-170).
    4. Civil Rights Act. RD has reviewed this NOFO in accordance with 
USDA Regulation 4300-4, Civil Rights Impact Analysis,'' to identify any 
major civil rights impacts the NOFO might have on program participants 
on the basis of age, race, color, national origin, sex, disability, 
gender identity (including gender expression), genetic information, 
political beliefs, sexual orientation, marital status, familial status, 
parental status, veteran status, religion, reprisal and/or resulting 
from all or a part of an individual's income being derived from any 
public assistance program. This NOFO is within a Guarantee-based 
program. Guarantees are not covered under Title VI of the Civil Rights 
Act of 1964, Section 504 of the Rehabilitation Act of 1973, and Title 
IX of the Education Amendments Act of 1972, as amended, when the 
Federal assistance does not include insurance or interest credit loans. 
Lenders must comply with other applicable Federal laws, including Equal 
Employment Opportunities, the Equal Credit Opportunity Act, the Fair 
Housing Act, and the Civil Rights Act of 1964. Guaranteed loans that 
involve the construction of or addition to facilities that accommodate 
the public must comply with the Architectural Barriers Act 
Accessibility Standard. The borrower and lender are responsible for 
ensuring compliance with these requirements.
    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. 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. 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; or the 711 Relay 
Service.
    To file a program discrimination complaint, a complainant should 
complete a Form AD-3027, USDA

[[Page 85152]]

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:
    (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. 2024-24930 Filed 10-24-24; 8:45 am]
BILLING CODE 3410-15-P