[Federal Register Volume 85, Number 183 (Monday, September 21, 2020)]
[Notices]
[Pages 59281-59285]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-20687]
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DEPARTMENT OF AGRICULTURE
Rural Business-Cooperative Service
Notice of Solicitation of Applications for the Biorefinery,
Renewable Chemical, and Biobased Product Manufacturing Assistance
Program
AGENCY: Rural Business-Cooperative Service, USDA.
ACTION: Notice.
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SUMMARY: This Notice announces the solicitation of applications for
funds available under the Biorefinery, Renewable Chemical, and Biobased
Product Manufacturing Assistance Program (the Program) to provide
guaranteed loans to fund the development, construction, and
retrofitting of commercial scale biorefineries using eligible
technology and of biobased product manufacturing facilities that use
technologically new commercial scale processing and manufacturing
equipment to convert renewable chemicals and other biobased outputs of
biorefineries into end-user products, on a commercial scale.
DATES: With this Notice, the Agency is announcing two separate
application cycles, which have application closing dates of 4:30 p.m.
Eastern Daylight Time (EDT), October 1, 2020, and 4:30 p.m. EDT, April
1, 2021.
Applications must be received in the USDA Rural Business-
Cooperative Service, Program Processing Division no later than 4:30
p.m. EDT of the application closing date to compete for program funds.
Any application received after 4:30 p.m. EDT of the application closing
date will be considered for the subsequent application cycle, provided
that funding is still available.
ADDRESSES: Applications and forms may be obtained from:
USDA, Rural Business-Cooperative Service, Program
Processing Division, Attention: Biorefinery, Renewable Chemical, and
Biobased Product Manufacturing Assistance Program, 1400 Independence
Avenue SW, Room 5801-S, Washington, DC 20250-3225.
Agency website: Application materials can be obtained from
the Agency's website: https://www.rd.usda.gov/programs-services/biorefinery-renewable-chemical-and-biobased-product-manufacturing-assistance.
FOR FURTHER INFORMATION CONTACT: Aaron Morris, Director, USDA Rural
Business-Cooperative Service, Program Processing Division, 1400
Independence Avenue SW, Room 5801-S, Washington, DC 20250-3225.
Telephone: (202) 720-1501. Email: [email protected].
SUPPLEMENTARY INFORMATION:
Preface
The Agency encourages applications that will support
recommendations made in the Rural Prosperity Task Force report to help
improve life in rural America (www.usda.gov/ruralprosperity).
Applicants are encouraged to consider projects that provide measurable
results in helping rural communities build robust and sustainable
economies through strategic investments in infrastructure,
partnerships, and innovation. Key strategies include:
Achieving e-Connectivity for Rural America
Developing the Rural Economy
Harnessing Technological Innovation
Supporting a Rural Workforce
Improving Quality of Life
Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1995, the
information collection requirements associated with the Program, as
covered in this Notice, have been approved by the Office of Management
Budget (OMB) under OMB Control Number 0570-0065.
Overview
Federal Agency Name: Rural Business-Cooperative Service (an Agency
of USDA in the Rural Development mission area).
Solicitation Opportunity Title: Biorefinery, Renewable Chemical,
and Biobased Product Manufacturing Assistance Program.
Announcement Type: Notice of Solicitation of Applications.
Catalog of Federal Domestic Assistance (CFDA) Number: The CFDA
number for this Notice is 10.865.
Dates: Applications must be received in the USDA Rural Business-
Cooperative Service, Energy Programs no later than the application
closing dates of 4:30 p.m. EDT, October 1, 2020, and 4:30 p.m. EDT,
April 1, 2021. Any application received after 4:30 p.m. EDT of the
application closing date will be considered for the subsequent
application cycle, provided that funding is available.
Availability of Notice and Rule: This Notice and the final rule for
the Program are available on the USDA Rural Development website at:
https://www.rd.usda.gov/programs-services/biorefinery-renewable-chemical-and-biobased-product-manufacturing-assistance.
I. Funding Opportunity Description
A. Purpose of the Program. The purpose of the Biorefinery,
Renewable Chemical, and Biobased Product Manufacturing Assistance
Program is to assist in the development of new and emerging
technologies for the development of advanced biofuels, renewable
chemicals, or biobased product manufacturing. This is achieved through
guarantees for loans made to fund the development, construction, and
retrofitting of commercial scale biorefineries using eligible
technology and of biobased product manufacturing facilities that use
technologically new commercial scale processing and
[[Page 59282]]
manufacturing equipment and required facilities to convert renewable
chemicals and other biobased outputs of biorefineries into end-user
products on a commercial scale.
B. Statutory Authority. This Program is authorized under 7 U.S.C.
8103. Regulations are contained in 7 CFR part 4279, subpart C and in 7
CFR part 4287, subpart B.
C. Definition of Terms. The definitions applicable to this Notice
are published at 7 CFR 4279.202 and 7 CFR 4287.302.
D. Application awards. The Agency will review, evaluate, score, and
award applications received in response to this Notice based on the
provisions found in 7 CFR part 4279, subpart C and as indicated in this
Notice.
II. Award Information
A. Available funds. This Notice is a solicitation for applications
that will be funded using budget authority provided by the Food,
Conservation, and Energy Act of 2008 (2008 Farm Bill), the Agricultural
Act of 2014 (2014 Farm Bill), and the Agricultural Improvement Act of
2018 (2018 Farm Bill).
B. Type of Award. Guaranteed loan.
C. Approximate Number of Awards. Subject to the amount of funding
available.
D. Guarantee Loan Funding. The provisions of 7 CFR 4279.232 apply
to this Notice. The Borrower needs to provide the remaining funds from
other non-federal sources to complete the Project.
E. Guarantee and Annual Renewal Fees. The guarantee and annual
renewal fees specified in 7 CFR 4279.231 are applicable to this Notice.
F. Anticipated Award Date. The award date will vary based on timing
of completion of each project's individual application process.
III. Eligibility Information
A. Eligible Lenders. To be eligible for this program, lenders must
meet the eligibility requirements in 7 CFR 4279.208.
B. Eligible Borrowers. To be eligible for this program, borrowers
must meet the eligibility requirements in 7 CFR 4279.209.
C. Eligible Projects. To be eligible for this program, projects
must meet the eligibility requirements in 7 CFR 4279.210.
D. Application Completeness. Incomplete Phase 1 applications will
be rejected, and the project will be given no further consideration.
Lenders will be informed of the element(s) that made the application
incomplete. If the lender makes the required edits and resubmits the
application to the USDA's Rural Business-Cooperative Service, Program
Processing Division by 4:30 p.m. EDT, on the application closing date,
the Agency will reconsider the application.
IV. Application Submission Information
A. Letter of Intent. For each loan guarantee request, the lender or
the borrower must submit to the Agency a non-binding letter of intent
to apply for a loan guarantee, not less than 30 calendar days prior to
the application deadline. The letter of intent due date is September 1,
2020; for the October 1, 2020, application cycle and March 1, 2021 for
the April 1, 2021, cycle. The letter must identify the borrower, the
lender and any project sponsors; describe the project and project
location; describe the proposed feedstock, primary technologies of the
facility, and primary products produced; estimate the total project
cost and amount of loan requested; and identify the application cycle
due date. The Agency reserves the right to request additional
information from potential applicants. Applications submitted without a
letter of intent may be accepted by the Agency at the Agency's
discretion.
B. Application Submittal. For each loan guarantee request, the
lender must submit to the Agency an application that conforms with 7
CFR 4279.261. The content and methods of application submittal are
specified below. Additionally, the Agency has developed an application
guide that explains the application procedures and details the process
for submission of an application. This guide is located at http://www.rd.usda.gov/files/RBS_Section9003Biorefinery_ApplicationGuide.pdf.
C. Content and Form of Submission. All applicants must submit one
paper copy of the application materials and an electronic copy
containing the same information that is included in the paper copy.
Detailed instructions regarding application submission are explained in
the application guide that the Agency has developed. The application
guide is available online under the ``To Apply'' tab at https://www.rd.usda.gov/programs-services/biorefinery-renewable-chemical-and-biobased-product-manufacturing-assistance or by contacting Aaron
Morris, Telephone: (202) 720-1501. Email: [email protected].
Application materials should be submitted to USDA, Rural Business-
Cooperative Service, Program Processing Division, Attention:
Biorefinery, Renewable Chemical, and Biobased Product Manufacturing
Assistance Program, 1400 Independence Avenue SW, Room 5801-S,
Washington, DC 20250-3225.
The Agency's application process is divided into two phases. Phase
1 applications will provide information needed to determine lender,
borrower, and project eligibility; preliminary economic and technical
feasibility; and the priority score of the application. Based on the
priority score ranking, the Agency will invite applicants whose Phase 1
applications receive higher priority scores to submit Phase 2
applications. Phase 2 application materials will be submitted as the
project planning and engineering are finalized and will include
information such as: Environmental compliance information, technical
report, financial model, and the lender's credit evaluation. Phase 1
applications must contain the information required in the Agency's
Application Guide and in accordance with 7 CFR 4279.261.
D. Local Owner. For applications submitted under this Notice, when
the majority of feedstock to be utilized by the project on an annual
basis is harvested from the land, the term ``local owner'' is defined
as an individual who owns any portion of an eligible biorefinery and
whose primary residence is located within the geographic area that the
biorefinery's feedstock originates. In all other cases, ``local owner''
is defined as an individual who owns any portion of an eligible
biorefinery and whose primary residence is located within 100 miles of
the biorefinery. This definition will remain in effect until and unless
amended by a future Federal Register Notice.
V. Biobased Product Manufacturing
This notice also includes the solicitation of applications for
funds available under the Biorefinery, Renewable Chemical, and Biobased
Product Manufacturing Assistance Program to specifically fund biobased
product manufacturing. The 2014 Farm Bill added biobased product
manufacturing to the Program and provided for up to 15 percent of the
mandatory funds for fiscal years 2014 and 2015 to be used to support
facilities producing biobased products for end-use. The 2014 Farm Bill
provides the definition of ``biobased product manufacturing,'' which
the Agency has incorporated into the subsequent final rule (see 7 CFR
4279.202). This definition requires that the biobased product
manufacturing facility use renewable chemicals and other biobased
outputs of biorefineries as inputs. It also
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requires that the borrower use technologically new commercial scale
processing and manufacturing equipment and required facilities. The
facility must produce end-user products.
VI. Biobased Product Manufacturing Eligibility Information
The eligibility requirements for prospective lenders and borrowers
will not change from those listed above for the program. For biobased
product manufacturing projects, the eligible project requirement is
modified to reflect that eligible projects will use technologically new
commercial scale processing and manufacturing equipment and require
facilities to convert renewable chemicals and other biobased outputs of
biorefineries into end-user products on a commercial scale.
Additionally, for purposes of biobased product manufacturing
projects, technical reports need to address only the technologically
new commercial scale processing and manufacturing equipment and
required facilities.
VII. Biobased Product Manufacturing Application Processing Procedures
The application processing procedures will remain the same for
biobased product manufacturing projects as for the projects described
above.
Pursuant to Sec. 4279.202, for applications submitted under this
Notice, ``local owner'' is defined as an individual who owns any
portion of an eligible biorefinery and whose primary residence is
located within 100 miles of the biorefinery.
VIII. Biobased Product Manufacturing Scoring
In lieu of the criteria listed in 7 CFR 4279.266, biobased product
manufacturing projects will be scored using the criteria listed below.
The scoring criteria below will remain in effect until amended by
another Federal Register Notice. The scoring criteria are as follows:
(a) Whether the borrower has established a market for the
manufactured biobased product, as applicable. A maximum of 16 points
can be awarded. Points to be awarded will be determined as follows:
(1) Degree of commitment of contracted sales agreements. A maximum
of 6 points will be awarded.
(i) If the borrower has signed contracts for the purchase of
greater than 50 percent of the dollar value of manufactured biobased
product, 6 points will be awarded.
(ii) If the borrower has signed letters of intent to enter into
contracted sales agreements, or comparable documentation, for the
purchase for greater than 50 percent of the dollar value of the
manufactured biobased product, or combination of signed contracts or
agreements and letters of intent or comparable documentation, 4 points
will be awarded.
(iii) If the borrower has signed letters of interest to enter into
contracted sales agreements, or comparable documentation, for the
purchase for greater than 50 percent of the dollar value of the
manufactured biobased product, or combination of signed contracts,
letters of intent or comparable documentation, 2 points will be
awarded.
(2) Duration of contracted sales agreements. A maximum of 6 points
will be awarded.
(i) If the borrower commits to enter into contracted sales
agreements prior to loan closing for purchase for greater than or equal
to 50 percent of the dollar value of manufactured biobased product for
the period not less than the loan term, 6 points will be awarded.
(ii) If the borrower commits to enter into contracted sales
agreements prior to loan closing for purchase for greater than or equal
to 50 percent of the dollar value of the manufactured biobased product
for the period not less than 5 years but less than the term of the
loan, 4 points will be awarded.
(iii) If the borrower commits to enter into contracted sales
agreements prior to loan closing for purchase for greater than or equal
to 50 percent of the dollar value of the manufactured biobased product
for the period not less than 1 year but less than 5 years, 2 points
will be awarded.
(3) Financial strength of the contracted sales agreement
counterparty. A maximum of 4 points will be awarded.
(i) If the borrower commits to enter into contracted sales
agreements prior to loan closing for purchase for greater than or equal
to 50 percent of the dollar value of the manufactured biobased product
with a counterparty with a corporate credit rating not less than AA,
Aa2, or equivalent, 4 points will be awarded.
(ii) If the borrower commits to enter into contracted sales
agreements prior to loan closing for purchase for greater than or equal
to 50 percent of the dollar value of the manufactured biobased product
with a counterparty with a corporate credit rating less than AA, Aa2,
or equivalent, but not less than A-, or A3, or equivalent, 2 points
will be awarded.
(iii) If the borrower commits to enter into contracted sales
agreements prior to loan closing for purchase for greater than or equal
to 50 percent of the dollar value of the manufactured biobased product
with a counterparty with a corporate credit rating less than A-, or A3,
or equivalent, but not less than BBB-, or Baa3, or equivalent, 1 point
will be awarded.
(b) Whether the area in which the borrower proposes to place the
project, defined as the area that will supply the renewable chemicals
and other biobased outputs of biorefineries to the proposed project,
has any other similar facilities. A maximum of 5 points can be awarded.
Points to be awarded will be determined as follows:
(1) If the area that will supply the renewable chemicals and other
biobased outputs of biorefineries to the proposed project does not have
any other similar facilities, 5 points will be awarded.
(2) If there are other similar facilities located within the area
that will supply the renewable chemicals and other biobased outputs of
biorefineries to the proposed project, 0 points will be awarded.
(c) Whether the borrower is proposing to use renewable chemicals
and other biobased outputs of biorefineries not previously used in the
biobased product manufacturing. A maximum of 10 points can be awarded.
Points to be awarded will be determined as follows:
(1) If the borrower proposes to use renewable chemicals and other
biobased outputs of biorefineries previously used in the manufacture of
a biobased product in a commercial facility, 0 points will be awarded.
(2) If the borrower proposes to use renewable chemicals and other
biobased outputs of biorefineries not previously used in the
manufacture of a biobased product in a commercial facility, 10 points
will be awarded.
(d) Whether the borrower is proposing to work with producer
associations or cooperatives, a maximum of 5 points can be awarded.
Points to be awarded will be determined as follows:
(1) If at least 50 percent of the dollar value of renewable
chemicals and other biobased outputs of biorefineries to be used by the
proposed project will be supplied by producer associations and
cooperatives or biorefineries supplied by producer associations and
cooperatives, 5 points will be awarded.
(2) If at least 30 percent of the dollar value of renewable
chemicals and other biobased outputs of biorefineries to be used by the
proposed project will be supplied by producer associations and
cooperatives or biorefineries supplied
[[Page 59284]]
by producer associations and cooperatives, 3 points will be awarded.
(e) The level of financial participation by the borrower, including
support from non-federal government sources and private sources. A
maximum of 20 points can be awarded. Points to be awarded will be
determined as follows:
(1) If the sum of the loan amount requested and other direct
federal funding is less than or equal to 50 percent of total eligible
project costs, 20 points will be awarded.
(2) If the sum of the loan amount requested and other direct
federal funding is greater than 50 percent but less than or equal to 55
percent of total eligible project costs, 16 points will be awarded.
(3) If the sum of the loan amount requested and other direct
federal funding is greater than 55 percent but less than or equal to 60
percent of total eligible project costs, 12 points will be awarded.
(4) If the sum of the loan amount and other direct federal funding
is greater than 60 percent but less than or equal to 65 percent of
total eligible project costs, 8 points will be awarded.
(5) If the sum of the loan amount and other direct federal funding
is greater than 65 percent but less than or equal to 70 percent of
total eligible project costs, 4 points will be awarded.
(f) Whether the borrower has established that the adoption of the
manufacturing process proposed in the application will have a positive
effect on three impact areas: Resource conservation (e.g., water, soil,
forest), public health (e.g., potable water, air quality), and the
environment (e.g., compliance with an applicable renewable fuel
standard, greenhouse gases, emissions, particulate matter). A maximum
of 10 points can be awarded. Based on what the borrower has provided in
either the application or the feasibility study, points to be awarded
will be determined as follows:
(1) If process adoption will have a positive impact on any one of
the three impact areas (resource conservation, public health, or the
environment), 3 points will be awarded.
(2) If process adoption will have a positive impact on two of the
three impact areas, 6 points will be awarded.
(3) If process adoption will have a positive impact on all three
impact areas, 10 points will be awarded.
(g) Whether the borrower can establish that, if adopted, the
technology proposed in the application will not have any economically
significant negative impacts on existing manufacturing plants or other
facilities that use renewable chemicals and other biobased outputs of
biorefineries. A maximum of 5 points can be awarded. Points to be
awarded will be determined as follows:
(1) If the borrower has failed to establish, through an independent
third-party feasibility study, that the production technology proposed
in the application, if adopted, will not have any economically
significant negative impacts on existing manufacturing plants or other
facilities that use similar renewable chemicals and other biobased
outputs of biorefineries, 0 points will be awarded.
(2) If the borrower has established, through an independent third-
party feasibility study, that the production technology proposed in the
application, if adopted, will not have any economically significant
negative impacts on existing manufacturing plants or other facilities
that use renewable chemicals and other biobased outputs of
biorefineries, 5 points will be awarded.
(h) The potential for rural economic development. A maximum of 10
points can be awarded. Points to be awarded will be determined as
follows:
(1) If the project is located in a rural area, 5 points will be
awarded.
(2) If the project creates jobs through direct employment with an
average wage that exceeds the county median household wages where the
project will be located, 5 points will be awarded.
(i) The level of local ownership of the facility proposed in the
application. For the purposes of this Notice, a local owner is defined
as ``an individual who owns any portion of an eligible advanced biofuel
biorefinery and whose primary residence is located within 100 miles of
the biorefinery.'' A maximum of 5 points can be awarded. Points to be
awarded will be determined as follows:
(1) If local owners have an ownership interest in the facility of
more than 20 percent but less than or equal to 50 percent, 3 points
will be awarded.
(2) If local owners have an ownership interest in the facility of
more than 50 percent, 5 points will be awarded.
(j) Whether the project can be replicated. A maximum of 10 points
can be awarded. Points to be awarded will be determined as follows:
(1) If the project can be commercially replicated regionally (e.g.,
Northeast, Southwest, etc.), 5 points will be awarded.
(2) If the project can be commercially replicated nationally, 10
points will be awarded.
(k) If the project uses a particular technology, system, or process
that is not currently operating at commercial scale as of October 1 of
the fiscal year for which the funding is available; October 1, 2020, 5
points will be awarded.
(l) The Administrator can award up to a maximum of 10 bonus points:
(i) To ensure, to the extent practical, there is diversity in the
types of projects approved for loan guarantees to ensure a wide a range
as possible technologies, products, and approaches are assisted in the
program portfolio; and
(ii) To applications that promote partnerships and other activities
that assist in the development of new and emerging technologies for the
development of renewable chemicals and other biobased outputs of
biorefineries, so as to, as applicable, promote resource conservation,
public health, and the environment; diversify markets for agricultural
and forestry products and agriculture waste material; and create jobs
and enhance the economic development of the rural economy. No
additional information regarding partnerships is provided at this time.
If additional information does become available, the Agency will
publish those details in a Federal Register notice.
IX. General Program Information
A. Loan Origination. Lenders seeking a loan guarantee under this
Notice must comply with all the provisions found in 7 CFR 4279, subpart
C.
B. Loan Processing. The Agency will process loans guaranteed under
this Notice in accordance with the provisions specified in 7 CFR
4279.260 through 4279.290.
C. Evaluation of Applications and Awards. Awards under this Notice
will be made on a competitive basis; submission of an application
neither reserves funding nor ensures funding. The Agency will evaluate
each application received in the USDA, Rural Business-Cooperative
Service, Program Processing Division; select Phase 1 applications in
accordance with 7 CFR 4279.267, select projects to invite submittal of
Phase 2 applications, and will make awards using the provisions
specified in 7 CFR 4279.278.
D. Guaranteed Loan Servicing. The Agency will service loans
guaranteed under this Notice in accordance with the provisions
specified in 7 CFR 4287.301 through 4287.399.
E. System for Award Management (SAM) and Dun and Bradstreet Data
Universal Numbering System (DUNS) Registration. Unless exempt under 2
CFR 25.110, the applicant must be registered in the SAM prior to
submitting an application and maintain an active SAM registration with
current information at all times during which it
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has an active federal award or an application under consideration by
the Agency. Applicants must provide a DUNS number for each application
submitted to the Agency.
X. Administration Information
A. Notifications. The Agency will notify, in writing, lenders whose
Phase 1 applications have scored highest and will invite them to submit
Phase 2 applications. If the Agency determines it is unable to
guarantee any particular loan, the lender will be informed in writing.
Such notification will include the reason(s) for denial of the
guarantee.
B. Administrative and National Policy Requirements.
1. Review or Appeal Rights. A person may seek a review of an Agency
decision or appeal to the National Appeals Division in accordance with
7 CFR 4279.204.
2. Exception Authority. The provisions specified in 7 CFR 4279.203
and 7 CFR 4287.303 apply to this Notice.
C. Environmental Review. The Agency will review all applicant
proposals that may qualify for assistance under this section in
accordance with 7 CFR part 1970, Environmental Policies and Procedures.
The environmental review for projects that score high enough will be
submitted during the Phase 2 application process and must be conducted
in accordance with 7 CFR part 1970, Environmental Policies and
Procedures.
XI. Agency Contacts
For general questions about this Notice, please contact Aaron
Morris, Rural Business-Cooperative Service, Program Processing
Division, U.S. Department of Agriculture, 1400 Independence Avenue SW,
Room 5801-S, Washington, DC 20250-3225. Telephone: (202) 720-1501.
Email: [email protected].
Equal Opportunity and Non-Discrimination Requirements
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.
Persons with disabilities who require alternative means of
communication for program information (e.g., Braille, large print,
audiotape, American Sign Language, etc.) should contact the responsible
Agency or USDA's TARGET Center at (202) 720-2600 (voice and TTY) or
contact USDA through the Federal Relay Service at (800) 877-8339.
Additionally, program information may be made available in languages
other than English.
To file a program discrimination complaint, complete the USDA
Program Discrimination Complaint Form, AD-3027 online or at any USDA
office, or write a letter addressed to USDA and provide in the letter
all of the information requested on the form. To request a copy of a
complaint form, call, (866) 632-9992. Submit your completed complaint
form or letter 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;
(2) Fax: (202) 690-7442; or
(3) Email at: [email protected].
USDA is an equal opportunity provider, employer, and lender.
Rebeckah Freeman-Adcock,
Administrator, Rural Business-Cooperative Service.
[FR Doc. 2020-20687 Filed 9-18-20; 8:45 am]
BILLING CODE 3410-XY-P