[Federal Register Volume 66, Number 130 (Friday, July 6, 2001)]
[Notices]
[Pages 35584-35588]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-16971]


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DEPARTMENT OF AGRICULTURE

Rural Utilities Service


Grants for State Revolving Loan Funds for Fuel Purchases

AGENCY: Rural Utilities Service, USDA.

ACTION: Notice of funding availability (NOFA).

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SUMMARY: The Rural Utilities Service (RUS) of the United States 
Department of Agriculture (USDA) announces the availability of up to 
$5,000,000 for fiscal year (FY) 2001 in a new program of grants to 
state entities to establish and support revolving loan funds to provide 
a more cost-effective means of purchasing fuel for communities where 
the fuel cannot be shipped by means of surface transportation. This 
notice describes the grant eligibility and application requirements, 
and the criteria that will be used by RUS to award grants. The intended 
effect of this NOFA is to make grant funds available as expeditiously 
as possible to enable grantees to assist persons, particularly those in 
isolated rural areas, in meeting their critical fuel needs during a 
period of growing demand and high energy prices.

DATES: Applications for grants must be postmarked no later than August 
6, 2001, to be considered. Grant applications will be accepted on 
publication of this notice.

[[Page 35585]]


ADDRESSES: Applications are to be submitted to the Rural Utilities 
Service, U.S. Department of Agriculture, 1400 Independence Avenue, SW., 
STOP 1560, Room 4037 South Building, Washington, DC 20250-1522. The 
applicant should submit an original and two copies of the proposal, 
with all required forms and documentation in one package. The package 
should be marked ``Attention: State Fuel Purchase Revolving Loan Fund 
Grants.''

FOR FURTHER INFORMATION CONTACT: Karen Larsen, Management Analyst, U.S. 
Department of Agriculture, Rural Utilities Service, Electric Program, 
1400 Independence Avenue, SW., STOP 1560, Room 4037 South Building, 
Washington, DC 20250-1560. Telephone 202-720-9545, Fax 202-690-0717, 
email [email protected].

SUPPLEMENTARY INFORMATION:

Programs Affected

    The Catalog of Federal Domestic Assistance Program number assigned 
to this program is 10.857.

Information Collection and Recordkeeping Requirements

    Under the Paperwork Reduction Act (44 U.S.C. 3501 et seq.) (the 
``Act''), OMB must approve all ``collections of information'' by RUS. 
The Act defines ``collection of information'' as a requirement for 
``answer to * * * 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 NOFA will 
involve less than 10 persons and do not require approval under the 
provisions of the Act.

Background

    For FY 2001, RUS will make available up to $5,000,000 under a new 
grant program authorized by section 19 of the Rural Electrification Act 
of 1936, as amended (7 U.S.C. 901 et seq.). Section 19(a)(3) authorizes 
the Secretary, acting through RUS, to make grants to State entities 
that were in existence as of November 30, 2000, the date of the 
enactment of section 19, ``to establish and support a revolving fund to 
provide a more cost-effective means of purchasing fuel where the fuel 
cannot be shipped by means of surface transportation.'' Fuel purchases 
typically would include, but are not limited to purchases of fuel oil, 
diesel, gasoline, and other petroleum products, coal, or other energy 
fuels. Section 19(b)(2) provides that not more than 4 percent of the 
amounts made available under these grants may be used for planning and 
administrative expenses.
    RUS is interested in gaining experience in the use of State 
revolving loan funds designed to help persons, particularly those in 
the more isolated rural areas, to manage their energy needs. RUS 
believes that such partnerships with State entities may serve to create 
new approaches to meeting the energy needs of rural residents. In 
considering applications for financial assistance under this grant 
program, RUS has determined to give particular consideration to 
projects that meet the needs of the persons in the most isolated rural 
areas.

Definitions

    As used in this NOFA:
    ``Eligible area'' means any area where fuel cannot be shipped 
routinely by means of surface transportation and must be delivered by 
water or air for a significant part of the year. Eligible areas include 
areas where fuel delivery by means of surface transportation is not 
practical or is prohibitively expensive and the area is primarily 
dependent on delivery of fuel by water or air.
    ``Fuel'' means coal, oil, gasoline, and other petroleum products, 
and any other material that can be burned to make energy.
    ``State entity'' means an agency, department, or instrumentality, 
or political subdivision of any of the several States of the United 
States or the District of Columbia, exclusive of local governments.
    ``Surface transportation'' means transportation by road, rail, or 
pipeline.

Use of Grant Funds

    Grantees must use grant funds to establish and support a revolving 
loan fund. The grantee must demonstrate that projects and activities 
that receive loans or other assistance under this grant will improve 
the cost-effectiveness of fuel purchases for persons in eligible areas. 
No more than 4 percent of grant funds may be used for planning and 
administrative expenses of the revolving fund.

Available Funds and Award Limitations

    The amount of funds available for grants in FY 2001 is $5,000,000. 
The number of grant awards depends on the amount, quality, and 
competitiveness of applications submitted. RUS reserves the right to 
make one award in the full amount of $5,000,000. If, as a result of the 
evaluation of applications as provided in this NOFA, one or more 
applications are scored within 10 points of the application with the 
highest rank order, the RUS Administrator shall limit individual grant 
awards to $3,000,000 and fund such grant applications in rank order, 
except that the Administrator may exceed the $3,000,000 individual 
grant limit to ensure that grants are made in the aggregate amount of 
$5,000,000. RUS will advise applicants if it can not fully fund a grant 
request.

Eligible Applicants

    Section 19 of the RE Act restricts eligible applicants to State 
entities, as defined above, in existence as of November 9, 2000. State 
grant recipients may partner with other entities, including other 
government agencies in carrying out the programs funded under these 
grants.

How To Apply For Assistance

    Grant applications should be prepared in conformance with the 
provisions of this NOFA and applicable USDA regulations including 7 CFR 
parts 3015 and 3016. Applicants must submit a completed Standard Form 
(SF) 424, ``Application for Federal Assistance,'' a narrative grant 
proposal that establishes eligibility and addresses the selection 
criteria, and all required supporting information and documents. The 
applicant should submit an original and two copies of the proposal, 
with all required forms and documentation in one package as provided in 
the Addresses section of this NOFA.
    Copies of required forms are available by request from the Agency 
contact or online through the RUS website at 
http://www.usda.gov/rus/electric/index.htm. Because of the short time 
period allowed for preparation and submittal of applications in this 
new grant program, RUS encourages applicants to consult with the agency 
contact person to resolve any questions or uncertainties about what is 
required to prepare and submit a grant application.

What To Include in the Application

    Applicants should follow the guidelines of this notice in preparing 
their applications. The completed application should be assembled in 
the order specified with all pages numbered sequentially. The applicant 
must submit the following information for the application to be 
complete and considered for funding:
Part A. SF 424, ``Application for Federal Assistance''
    A completed SF 424 must be signed by an official authorized to 
submit the proposal on behalf of the State entity.

[[Page 35586]]

Part B. Grant Proposal
    The grant proposal is a narrative description prepared by the 
applicant that establishes the applicant's eligibility and includes an 
assessment of the need for grant funds, a description of plans for use 
of grant funds, the potential benefits to be derived, and a proposed 
budget. Summary descriptions are adequate. Lengthy submissions are 
discouraged. The proposal should contain the following sections in the 
order indicated.
    1. Executive Summary. The Executive Summary is a one page narrative 
summary that: (a) Identifies the State entity applying for the grant 
and the key agency contact with telephone and fax numbers, mailing 
address and email address; (b) states the amount of grant funds 
requested; and (c) provides a brief description of the proposed program 
including the estimated number of potential beneficiaries, i.e., 
persons or communities in eligible areas, their estimated fuel needs, 
the projects and activities to be financed through the revolving fund, 
and how financed projects and activities will improve the cost 
effectiveness of fuel procurement. The Executive Summary should also 
indicate whether the applicant is claiming additional scoring credits.
    2. Applicant Eligibility. A brief narrative statement and 
supporting evidence establishing that the applicant is a State entity 
as defined in this notice, was in existence as of November 9, 2000, and 
has the legal authority to enter into a financial assistance 
relationship with the federal government. Examples of supporting 
evidence of eligibility include a reference to or copy of the relevant 
state statute, regulation, executive order, or legal opinion.
    3. Assessment of Needs and Estimates of Potential Beneficiaries. In 
concise narrative form, estimates of the number, location, and 
population of potentially eligible areas in the State, and their 
estimated fuel needs and costs. The applicant should describe the 
criteria it uses to identify eligible areas, including the 
characteristics that make fuel deliveries by surface transport 
impossible or impractical and contribute to high energy costs. The 
population estimates should be based on U.S. Bureau of Census 
publications, where available. The applicant may support its assessment 
with exhibits such as maps, summary tables, and references to 
statistical information from the Bureau of the Census, the Energy 
Information Administration, state agencies, or private sources. 
Inclusion of information identifying the population in eligible areas 
may qualify the applicant for additional scoring credits based on the 
rurality of the area to be served.
    The applicant should provide any appropriate information on the 
economic challenges facing potential beneficiaries including whether 
the eligible areas include a Federally-identified Empowerment Zone or 
Enterprise Community (EC/EZ) or a USDA designated Champion Community. 
The list of currently approved EC/EZ may be found at the EZ/EC website 
at: http://www.ezec.gov or may be requested from the agency contact. 
The list of currently designated Champion Communities may be found on 
the EZ/EC website at http://www.ezec.gov/Communit/champions.html or 
requested from the agency contact.
    4. Program Overview. The applicant should describe the applicant's 
existing or proposed State revolving loan fund program, its proposed 
criteria for establishing eligibility of projects and activities to be 
financed through the program, how the program will improve the cost-
effectiveness of fuel supply acquisition for eligible areas, and its 
proposed methods for evaluating program performance. The description 
should address the following:
    a. Revolving fund program structure and management including its 
organizational structure, method of funding, legal authority, loan 
management experience, staff resources, the goals and objectives of the 
program, and any related services provided to program participants. If 
the revolving fund program is not yet operational, a proposed 
implementation schedule and milestones should be included. The 
applicant may, but is not required to, supplement its brief description 
with attachments to its application, such as, for example, annual 
reports, brochures, and loan agreements.
    b. Beneficiary eligibility and selection. A brief description of 
any requirements to qualify for funding and the criteria to be used in 
establishing eligibility of projects and activities to be financed 
through the program. The applicant should describe how the potential 
beneficiaries will be informed of the revolving fund availability.
    c. Cost effectiveness of funded projects and activities. The 
applicant should explain how the proposed revolving loan fund program 
will help provide cost-effective means of meeting fuel supply needs in 
eligible areas. The applicant should identify aspects of its program 
that encourage adoption of financially sustainable energy practices, 
adequate planning and investment in bulk fuel facility operations and 
maintenance, and cost-effective investments in energy efficiency taking 
into account resources available and characteristics of energy use 
within the eligible areas. For example, the revolving fund could 
support loans to upgrade fuel handling and storage capability, to fund 
the advance purchase, delivery and storage of fuel, and to secure 
volume and other purchase discounts. Where possible, the applicant 
should estimate the amount of cost savings to be realized and provide 
some documentation or references to support its statements on savings 
and improved services. The applicant should also describe how it plans 
to evaluate program success in conformance with its goals and 
objectives.
    5. Proposed budget for use of grant funds. A proposed budget should 
be submitted on SF 424A, ``Budget Information--Non-Construction 
Programs.'' The budget identifies how the grant funds will be used. No 
more than 4 percent of the grant funds can be used for planning and 
administrative expenses of the revolving loan fund. The applicant 
should also identify the source and amount of any other funds that will 
be used to support and sustain the revolving fund activities. There is 
no requirement for supplemental or matching funds under this grant 
program; however, RUS will award additional selection points to 
applicants based on the ability to support and sustain the revolving 
fund, including through access to additional funding.
    6. Any additional information that addresses the selection criteria 
or that the applicant believes relevant.

Part C. Additional Required Forms and Certifications

    The Applicant shall execute and submit with the initial application 
the following forms and certifications establishing compliance with 
other federal requirements:

SF 424B, ``Assurances--Non-Construction Programs''
SF LLL, ``Disclosure of Lobbying Activities''
Form AD-1052, ``Certification Regarding Drug-Free Workplace 
Requirements, States and State Agencies''
``Certification Regarding Debarment, Suspension and Other 
Responsibility Matter--Primary Covered Transactions'' as required under 
7 CFR part 3017, Appendix A.
    These forms may be obtained from the Agency contact listed above or 
through the RUS website at http://www.usda.gov/rus/electric/index.htm.

[[Page 35587]]

Review of Applications

    All applications for grants must be delivered to RUS at the address 
listed above or postmarked no later than August 6, 2001 to be eligible 
for FY 2001 grant funding. RUS will review each application for 
conformance with the provisions of this NOFA. RUS may contact the 
applicant for additional information or clarification. Incomplete 
applications will not be considered. Applications conforming with this 
NOFA will then be evaluated competitively by a panel of RUS employees 
selected by the Administrator and points awarded as described in the 
Evaluation Criteria and Weights Section below. After assigning points 
based on those criteria, the applications will be listed in rank order 
to the Administrator of RUS who will award the grants. The 
Administrator reserves the right to add 10 points to any proposal to 
ensure geographic distribution. Applications will then be funded in 
rank order until all available funds have been expended. If one or more 
applications are scored within 10 points of the application with the 
highest rank order, the RUS Administrator shall limit individual grant 
awards to $3,000,000 and fund such grant applications in rank order, 
except that the Administrator may exceed the $3,000,000 individual 
grant limit to ensure that grants are made in the aggregate amount of 
$5,000,000. RUS will advise applicants if it can not fully fund a grant 
request.

Selection Criteria and Weights

    RUS will evaluate each application according to the selection 
criteria described in this NOFA and award points up to the maximum 
number indicated under each criteria.
1. Proposed Program Design (Maximum 20 Points)
    Reviewers will consider the approach and viability of the 
applicant's program design, including the goals and objectives of the 
program, the proposed criteria for establishing eligibility of projects 
and activities for loans and financial assistance, and how the program 
will improve the cost-effectiveness of bulk fuel purchases. Reviewers 
will also consider the extent to which the proposal will promote the 
adoption of financially sustainable energy practices, adequate planning 
and investment in bulk fuel facility operations and maintenance, and 
cost-effective investments in energy efficiency taking into account the 
resources available and the characteristics of energy use within 
eligible areas. The reviewers will consider the applicant's proposed 
budget, the adequacy of resources, and the evidence of sound loan and 
financial management practices.
2. Assessment of Needs and Identification of Potential Beneficiaries 
(Maximum 20 Points)
    Reviewers will consider the applicant's identification of potential 
beneficiaries, i.e. persons in eligible areas, the applicant's 
assessment of bulk fuel needs, the costs, including delivery costs of 
fuel for the beneficiaries, and the challenges to be addressed by the 
program. Information on the severity of physical and economic 
challenges affecting eligible areas will be considered.
3. Evaluation Methods (Maximum 10 Points)
    Reviewers will consider the applicant's proposed measures to 
evaluate and report on the success and cost-effectiveness of projects 
and activities financed by the revolving loan fund and whether the 
results obtained will contribute to program improvements for the 
applicant or for other States seeking to implement similar programs.
4. Demonstrated Experience (Maximum 5 Points)
    Reviewers will consider the past accomplishments and experience of 
the applicant, including whether the applicant has demonstrated 
experience in administering a revolving fund providing financing for 
bulk fuel purchases or facilities.
5. Comparative Rurality (Maximum 20 Points)
    Reviewers will consider the rurality of the eligible areas proposed 
to be served with grant funds to assure that the needs of less densely 
populated rural areas are considered. For purposes of determining the 
rurality of the eligible area, applicants shall use the latest 
publications of the Bureau of the Census. If the majority of persons in 
eligible areas live outside of communities of 2,500 persons or more, 
the applicant will receive 15 points. If the majority of persons in 
eligible areas live outside of communities of 5,000 persons or more, 
the applicant will receive 10 points. If the majority of persons in 
eligible areas live outside of communities of 20,000 persons or more, 
the applicant will receive 5 points. If the majority of persons in 
eligible areas live in communities of more than 20,000 persons, the 
applicant will receive no points. Any proposal, however, that gives 
priority in assistance to projects that benefit persons living outside 
of communities of 2,500 or more will receive 5 additional points.
    The following examples, each of which assumes a total population of 
12,000 within eligible areas, illustrate how points will be awarded for 
comparative rurality under this criterion:
    Case 1: There is one community of 4,000 within the eligible areas. 
The majority of persons (i.e. 8,000 of 12,000) live outside of 
communities of 2,500 or more. Award: 15 points.
    Case 2: There are two communities. One has a population of 2,600; 
the other has 5,100. The majority of persons (i.e. 12,000-5,100=6,900) 
live outside of communities of 5,000 or more, but not outside of 
communities of 2,500 or more. Award: 10 points.
    Case 3: There are two communities. One has a population of 2,000; 
the other has 7,000. The majority of persons (i.e. 7,000) live outside 
of communities of 20,000, but not outside of communities of 5,000. 
Award: 5 points.
6. Program Support (Maximum 5 Points)
    Reviewers will consider the ability of the applicant to support and 
sustain the revolving fund, including access to additional funding 
sources. If the proposal includes additional funding from state or 
other sources to support the revolving fund, the maximum 5 points will 
be awarded.
7. Participation by EZ/EC (Maximum 10 Points)
    Reviewers will consider whether the eligible areas include a 
Federally-identified Empowerment Zone and Enterprise Community (EC/EZ 
). If the eligible area includes at least one EC/EZ area, 10 points 
will be awarded. The list of currently approved EC/EZ areas may be 
found at the EZ/EC website at:
http://www.ezec.gov or may be requested from the agency contact.
8. Participation by Champion Community (Maximum 8 Points)
    Reviewers will consider whether the eligible areas include at least 
one community that is a USDA identified ``Champion Community.'' If a 
Champion Community is included in the eligible areas, 8 points will be 
awarded. The list of currently approved USDA champion communities may 
be found at the EZ/EC website at http://www.ezec.gov/Communit/champions.html or may be requested from the agency contact.

Grantee Requirements

    RUS will notify successful grantees of the awards. Successful 
applicants will

[[Page 35588]]

be required to execute a grant agreement satisfactory to RUS, complete 
additional forms, and otherwise comply with applicable federal statutes 
and regulations required by USDA. Among other matters, the grantee may 
be asked to provide information, documents, and agreements necessary to 
comply with applicable environmental regulations and will be required 
to provide periodic financial and performance reports and submit a 
final project performance report.

Other Federal Statutes and Regulations

    Several other federal statutes and regulations apply to proposals 
considered for review and to the grant awarded. These include, but are 
not limited to:
7 CFR part 15, subpart A--Nondiscrimination in Federally Assisted 
Programs of the Department of Agriculture--Effectuation of Title VI of 
the Civil Rights Act of 1964.
7 CFR part 3015--Uniform Federal Assistance Regulations.
7 CFR part 3016--Uniform Administrative Requirements for Grants and 
Cooperative Agreements to State and Local Governments.
7 CFR part 3017--Governmentwide Debarment and Suspension 
(Nonprocurement) and Governmentwide Requirements for Drug-Free 
Workplace (Grants).
7 CFR part 3018--New Restrictions on Lobbying.
7 CFR part 3052--Audits of States, Local Governments, and Non-Profit 
Organizations.

    Dated: July 2, 2001.
Blaine D. Stockton,
Acting Administrator, Rural Utilities Service.
[FR Doc. 01-16971 Filed 7-5-01; 8:45 am]
BILLING CODE 3410-15-P