[Federal Register Volume 69, Number 87 (Wednesday, May 5, 2004)]
[Notices]
[Pages 25234-25259]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-10052]



[[Page 25233]]

-----------------------------------------------------------------------

Part III





Department of Agriculture





-----------------------------------------------------------------------



Rural Development



-----------------------------------------------------------------------



Notice of Funds Availability (NOFA) Inviting Applications for the 
Renewable Energy Systems and Energy Efficiency Improvements Grant 
Program; Notice

  Federal Register / Vol. 69, No. 87 / Wednesday, May 5, 2004 / 
Notices  

[[Page 25234]]


-----------------------------------------------------------------------

DEPARTMENT OF AGRICULTURE

Rural Development


Notice of Funds Availability (NOFA) Inviting Applications for the 
Renewable Energy Systems and Energy Efficiency Improvements Grant 
Program

AGENCY: Rural Development, USDA.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: Rural Development announces the availability of up to $22.8 
million in competitive grant funds for fiscal year (FY) 2004 to 
purchase renewable energy systems and make energy improvements for 
agricultural producers and rural small businesses. In order to be 
eligible for grant funds, the agricultural producer or rural small 
business must demonstrate financial need. The grant request must not 
exceed 25 percent of the eligible project costs.

DATES: Applications must be completed and submitted to the appropriate 
United States Department of Agriculture (USDA) State Rural Development 
Office postmarked no later than 75 calendar days after the date of the 
published notice. Applications postmarked after that date will be 
returned to the applicant with no action.

ADDRESSES: Submit proposals to the USDA State Rural Development Office 
where your project is located or, in the case of a rural small 
business, where you are headquartered. A list of the Energy 
Coordinators and State Rural Development Office addresses and telephone 
numbers follow. For further information about this solicitation, please 
contact the applicable State Office.

USDA State Rural Development Offices

Alabama

    Chris Harmon, USDA Rural Development, Sterling Center, Suite 601, 
4121 Carmichael Road, Montgomery, AL 36106-3683, (334) 279-3615.

Alaska

    Dean Stewart, USDA Rural Development, 800 West Evergreen, Suite 
201, Palmer, AK 99645-6539, (907) 761-7722.

Arizona

    Gary Mack, USDA Rural Development, 3003 North Central Avenue, Suite 
900, Phoenix, AZ 85012-2906, (602) 280-8717.

Arkansas

    Shirley Tucker, USDA Rural Development, 700 West Capitol Avenue, 
Room 3416, Little Rock, AR 72201-3225, (501) 301-3280.

California

    Charles Clendenin, USDA Rural Development, 430 G Street, Agency 
4169, Davis, CA 95616-4169, (530) 792-5825.

Colorado

    Linda Sundine, USDA Rural Development, 628 West 5th Street, Cortez, 
CO 81321, (720) 544-2929.

Delaware-Maryland

    James Waters, USDA Rural Development, 4607 South Dupont Hwy., P.O. 
Box 400, Camden, DE 19934-0400, (302) 697-4324.

Florida/Virgin Islands

    Joe Mueller, USDA Rural Development, 4440 NW. 25th Place, P.O. Box 
147010, Gainesville, FL 32614-7010, (352) 338-3482.

Georgia

    J. Craig Scroggs, USDA Rural Development, 333 Phillips Drive, 
McDonough, GA 30253, (678) 583-0866.

Hawaii

    Tim O'Connell, USDA Rural Development, Federal Building, Room 311, 
154 Waianuenue Avenue, Hilo, HI 96720, (808) 933-8313.

Idaho

    Dale Lish, USDA Rural Development, 725 Jensen Grove Drive, Suite 1, 
Blackfoot, ID 83221, (208) 785-5840, Ext. 118.

Illinois

    Cathy McNeal, USDA Rural Development, 2118 West Park Court, Suite 
A, Champaign, IL 61821, (217) 403-6210.

Indiana

    Jerry Hay, USDA Rural Development, North Vernon Area Office, 2600 
Highway 7 North, North Vernon, IN 47265, (812) 346-3411, Ext. 4.

Iowa

    Jeff Kuntz, USDA Rural Development, Federal Building, Room 873, 210 
Walnut Street, Des Moines, IA 50309, (641) 932-3031.

Kansas

    Larry Carnahan, USDA Rural Development, P.O. Box 437, 115 West 4th 
Street, Altamont, KS 67330, (620) 784-5431.

Kentucky

    Dewayne Easter, USDA Rural Development, 771 Corporate Drive, Suite 
200, Lexington, KY 40503, (859) 224-7435.

Louisiana

    Kevin Boone, USDA Rural Development, 3727 Government Street, 
Alexandria, LA 71302, (318) 473-7960.

Maine

    Valarie Flanders, USDA Rural Development, 967 Illinois Avenue, 
Suite 4, P.O. Box 405, Bangor, ME 04402-0405, (207) 990-9168.

Massachusetts/Rhode Island/Connecticut

    Sharon Colburn, USDA Rural Development, 451 West Street, Suite 2, 
Amherst, MA 01002-2999, (413) 253-4303.

Michigan

    Lee Bambusch, USDA Rural Development, 3001 Coolidge Road, Suite 
200, East Lansing, MI 48823, (517) 324-5257.

Minnesota

    David Gaffaney, USDA Rural Development, 375 Jackson Street, Suite 
410, St. Paul, MN 55101-1853, (651) 602-7814.

Mississippi

    Charlie Joiner, USDA Rural Development, Federal Building, Suite 
831, 100 West Capitol Street, Jackson, MS 39269, (601) 965-5457.

Missouri

    D. Clark Thomas, USDA Rural Development, 601 Business Loop 70 West, 
Parkade Center, Suite 235, Columbia, MO 65203, (573) 876-0995.

Montana

    John Guthmiller, USDA Rural Development, 900 Technology Blvd., Unit 
1, Suite B, P.O. Box 850, Bozeman, MT 59771, (406) 585-2540.

Nebraska

    Cliff Kumm, USDA Rural Development, 201 North, 25 Street, Beatrice, 
NE 68310, (402) 223-3125.

Nevada

    Dan Johnson, USDA Rural Development, 555 West Silver Street, Suite 
101, Elko, NV 89801, (775) 738-8468, Ext. 112.

New Hampshire

    See Vermont.

New Jersey

    Michael Kelsey, USDA Rural Development, 5th Floor North, Suite 500, 
8000 Midlantic Drive, Mt. Laurel, NJ 08054, (856) 787-7700, Ext. 7751.

[[Page 25235]]

New Mexico

    Eric Vigil, USDA Rural Development, 6200 Jefferson Street, NE., 
Room 255, Albuquerque, NM 87109, (505) 761-4952.

New York

    Scott Collins, USDA Rural Development, The Galleries of Syracuse, 
Suite 357, 441 South Salina Street, Syracuse, NY 13202-2541, (315) 477-
6409.

North Carolina

    H. Rossie Bullock, USDA Rural Development, P.O. Box 7426, 
Lumberton, NC 28359-7426, (910) 739-3349.

North Dakota

    Dale Van Eckhout, USDA Rural Development, Federal Building, Room 
208, 220 East Rosser Avenue, P.O. Box 1737, Bismarck, ND 58502-1737, 
(701) 530-2065.

Ohio

    James Cogan, USDA Rural Development, Federal Building, Room 507, 
200 North High Street, Columbus, OH 43215-2418, (614) 255-2420.

Oklahoma

    Jody Harris, USDA Rural Development, 100 USDA, Suite 108, 
Stillwater, OK 74074-2654, (405) 742-1036.

Oregon

    Don Hollis, USDA Rural Development, 1229 SE. Third Street, Suite A, 
Pendleton, OR 97801-4198, (541) 278-8049, Ext. 129.

Pennsylvania

    Vincent Murphy, USDA Rural Development, One Credit Union Place, 
Suite 330, Harrisburg, PA 17110-2996, (717) 237-2181.

Puerto Rico

    Virgilio Velez, USDA Rural Development, IBM Building, 654 Munoz 
Rivera Avenue, Suite 601, Hato Rey, PR 00918-6106, (787) 766-5091, ext. 
251.

South Carolina

    R. Gregg White, USDA Rural Development, Strom Thurmond Federal 
Building, 1835 Assembly Street, Room 1007, Columbia, SC 29201, (803) 
765-5881.

South Dakota

    Gary Korzan, USDA Rural Development, Federal Building, Room 210, 
200 4th Street, SW., Huron, SD 57350, (605) 352-1142.

Tennessee

    Dan Beasley, USDA Rural Development, 3322 West End Avenue, Suite 
300, Nashville, TN 37203-1084, (615) 783-1341.

Texas

    Pat Liles, USDA Rural Development, Federal Building, Suite 102, 101 
South Main Street, Temple, TX 76501, (254) 742-9780.

Utah

    Richard Carrig, USDA Rural Development, Wallace F. Bennett Federal 
Building, 125 South State Street, Room 4311, Salt Lake City, UT 84138, 
(801) 524-4328.

Vermont/New Hampshire

    Lyn Millhiser, USDA Rural Development, City Center, 3rd Floor, 89 
Main Street, Montpelier, VT 05602, (802) 828-6069.

Virginia

    Laurette Tucker, USDA Rural Development, Culpeper Building, Suite 
238, 1606 Santa Rosa Road, Richmond, VA 23229, (804) 287-1594.

Washington

    Chris Cassidy, USDA Rural Development, 1606 Perry Street, Suite E, 
Yakima, WA 98902-5769, (509) 454-5743, Ext. 5.

West Virginia

    Cheryl Wolfe, USDA Rural Development, 75 High Street, Room 320, 
Morgantown, WV 26505-7500, (304) 284-4882.

Wisconsin

    Mark Brodziski, USDA Rural Development, 4949 Kirschling Court, 
Stevens Point, WI 54481, (715) 345-7615, Ext. 131.

Wyoming

    Jerry Tamlin, USDA Rural Development, 100 East B, Federal Building, 
Room 1005, P.O. Box 820, Casper, WY 82602, (307) 261-6319.

SUPPLEMENTARY INFORMATION:

Background

    This solicitation is issued pursuant to enactment of the Farm 
Security and Rural Investment Act of 2002 (2002 Act), which established 
the Renewable Energy Systems and Energy Efficiency Improvements Program 
under Title IX, Section 9006. The 2002 Act requires the Secretary of 
Agriculture to create a program to make direct loans, loan guarantees, 
and grants to agricultural producers and rural small businesses to 
purchase renewable energy systems and make energy efficiency 
improvements. The program is designed to help agricultural producers 
and rural small businesses reduce energy costs and consumption and help 
meet the nation's critical energy needs. The 2002 Act also mandates the 
maximum percentage Rural Development will provide in funding for these 
types of projects. The Rural Development grant will not exceed 25 
percent of the eligible project costs and will be made only to those 
who demonstrate financial need. Due to the time constraints for 
implementing this program, Rural Development is issuing only the grant 
program for FY 2004 at this time.

Definitions Applicable to This NOFA

    Agency. Rural Development or successor Agency assigned by the 
Secretary of Agriculture to administer the program.
    Agricultural producer. An individual or entity directly engaged in 
the production of agricultural products, including crops (including 
farming); livestock (including ranching); forestry products; 
hydroponics; nursery stock; or aquaculture, whereby 50 percent or 
greater of their gross income is derived from the operations.
    Annual receipts. The total income or gross income (sole 
proprietorship) plus cost of goods sold.
    Biogas. Biomass converted to gaseous fuels.
    Biomass. Any organic material that is available on a renewable or 
recurring basis including agricultural crops; trees grown for energy 
production; wood waste and wood residues; plants, including aquatic 
plants and grasses; fibers; animal waste and other waste materials; and 
fats, oils, and greases, including recycled fats, oils, and greases. It 
does not include paper that is commonly recycled or unsegregated solid 
waste.
    Capacity. The load that a power generation unit or other electrical 
apparatus or heating unit is rated by the manufacturer to be able to 
meet or supply.
    Commercially available. Systems that have a proven operating 
history and an established design, installation, equipment, and service 
industry.
    Demonstrated financial need. The demonstration by an applicant that 
the applicant is unable to finance the project from its own resources 
or other funding sources without grant assistance.
    Eligible project cost. The total project costs that are eligible to 
be paid with grant funds.
    Energy audit. A written report by an independent, qualified entity 
or

[[Page 25236]]

individual that documents current energy usage, recommended 
improvements and their costs, energy savings from these improvements, 
dollars saved per year, and the weighted-average payback period in 
years.
    Energy efficiency improvement. Improvements to a facility or 
process that reduce energy consumption.
    Financial feasibility. The ability of the business to achieve the 
projected income and cash flow. The concept includes assessments of the 
cost-accounting system, the availability of short-term credit for 
seasonal business, and the adequacy of raw materials and supplies, 
where necessary.
    Grant close-out. When all required work is completed, 
administrative actions relating to the completion of work and 
expenditures of funds have been accomplished, and the Agency accepts 
final expenditure information.
    In-kind contributions. Applicant or third-party real or personal 
property or services benefiting the Federally assisted project or 
program that are contributed by the applicant or a third party. The 
identifiable value of goods and services must directly benefit the 
project.
    Interconnection agreement. The terms and conditions governing the 
interconnection and parallel operation of the grantee's or borrower's 
electric generation equipment and the utility's electric power system. 
Other services required by the applicant from the utility are covered 
under separate arrangements.
    Matching funds. The funds needed to pay for the portion of the 
eligible project costs not funded by the Agency through a grant under 
this program.
    Other waste materials. Inorganic or organic materials that are used 
as inputs for energy production or are by-products of the energy 
production process.
    Power purchase arrangement. The terms and conditions governing the 
sale and transportation of electricity produced by the grantee or 
borrower to another party. Other services required by the applicant 
from the utility are covered under separate arrangements.
    Pre-commercial technology. Technologies that have emerged through 
the research and development process and have technical and economic 
potential for application in commercial energy markets but are not yet 
commercially available.
    Renewable energy. Energy derived from a wind, solar, biomass, or 
geothermal source; or hydrogen derived from biomass or water using 
wind, solar, or geothermal energy sources.
    Renewable energy system. A process that produces energy from a 
renewable energy source.
    Rural. Any area other than a city or town that has a population of 
greater than 50,000 inhabitants and the urbanized area contiguous and 
adjacent to such a city or town.
    Small business. A private entity including a sole proprietorship, 
partnership, corporation, and a cooperative (including a cooperative 
qualified under section 501(c)(12) of the Internal Revenue Code) but 
excluding any private entity formed solely for a charitable purpose, 
and which private entity is considered a small business concern in 
accordance with the Small Business Administration's (SBA) Small 
Business Size Standards by North American Industry Classification 
System (NAICS) Industry found in 13 CFR part 121; provided the entity 
has 500 or fewer employees and $20 million or less in total annual 
receipts including all parent, affiliate, or subsidiary entities at 
other locations.
    State. Any of the 50 States, the Commonwealth of Puerto Rico, the 
Virgin Islands of the United States, Guam, American Samoa, the 
Commonwealth of the Northern Mariana Islands, the Republic of Palau, 
the Federated States of Micronesia, and the Republic of the Marshall 
Islands.
    Total project cost. The sum of all costs associated with a 
completed, operational project.

Grant Amounts

    The amount of funds available for this program in FY 2004 is up to 
$22.8 million. Rural Development grant funds may be used to pay up to 
25 percent of the eligible project costs. Half of the funds will be 
available for renewable energy systems and the other half for energy 
efficiency improvement projects. USDA may reallocate funds between the 
renewable energy systems and the energy efficiency improvement funds. 
Applications for renewable energy systems must be for a minimum grant 
request of $2,500, but no more than $500,000. Applications for energy 
efficiency improvements must be for a minimum grant request of $2,500, 
but no more than $500,000. The actual number of grants funded will 
depend on the quality of proposals received and the amount of funding 
requested. These limits are consistent with energy efficiency 
improvement projects and alternative energy systems, which the 
Department has determined are appropriate for agricultural producers 
and rural small businesses. Grant limitations were based on historical 
data supplied from Department of Energy, Environmental Protection 
Agency and Rural Utilities Service on renewable energy systems and from 
an energy efficiency state program for energy efficiency improvements.

Applicant Eligibility

    To receive a grant under this subpart, an applicant must meet each 
of the criteria, as applicable, as set forth in paragraphs (a) through 
(f).
    (a) The applicant or borrower must be an agricultural producer or 
rural small business.
    (b) Individuals must be citizens of the United States (U.S.) or 
reside in the U.S. after being legally admitted for permanent 
residence.
    (c) Entities must be at least 51 percent owned, directly or 
indirectly, by individuals who are either citizens of the U.S. or 
reside in the U.S. after being legally admitted for permanent 
residence.
    (d) If the applicant or borrower, or an owner has an outstanding 
judgment obtained by the United States in a Federal Court (other than 
in the United States Tax Court), is delinquent in the payment of 
Federal income taxes, or is delinquent on a Federal debt, the applicant 
or borrower is not eligible to receive a grant, until the judgment is 
paid in full or otherwise satisfied or the delinquency is resolved.
    (e) In the case of an applicant or borrower that is applying as a 
rural small business, the business headquarters must be in a rural area 
and the project to be funded also must be in a rural area.
    (f) The applicant must have demonstrated financial need.
    Adverse actions made on applications are appealable pursuant to 7 
CFR part 11.

Project Eligibility

    For a project to be eligible to receive a grant under this subpart, 
the proposed project must meet each of the criteria, as applicable, in 
paragraphs (a) through (f).
    (a) The project must be for the purchase of a renewable energy 
system or to make energy efficiency improvements.
    (b) The project must be for a pre-commercial or commercially 
available and replicable technology, not for research and development.
    (c) The project must be technically feasible.
    (d) The project must be located in a rural area.
    (e) The applicant must be the owner of the system and control the 
operation and maintenance of the proposed project. A qualified third-
party operator may be used to manage the operation

[[Page 25237]]

and/or for maintenance of the proposed project.
    (f) All projects must be based on satisfactory sources of revenues 
in an amount sufficient to provide for the operation and maintenance of 
the system or project.
    (g) Proposed projects which may necessitate an Environmental Impact 
Statement (EIS) may not be selected.
    (h) The total input from a nonrenewable energy source for necessary 
and incidental requirements of the energy system will be determined by 
the technical reviewers.

Grant Funding

    (a) The amount of grant funds that will be made available to an 
eligible project under this subpart will not exceed 25 percent of 
eligible project costs.
    (1) The only eligible project costs are those costs associated with 
the items identified in paragraphs (a)(1)(i) through (ix). The items 
must be an integral and necessary part of the total project:
    (i) Post-application purchase and installation of equipment, except 
agricultural tillage equipment and vehicles;
    (ii) Post-application construction or project improvements, except 
residential;
    (iii) Energy audits or assessments;
    (iv) Permit fees;
    (v) Professional service fees, except for application preparation;
    (vi) Feasibility studies;
    (vii) Business plans;
    (viii) Retrofitting; and
    (ix) Construction of a new facility only when the facility is used 
for the same purpose, is approximately the same size, and based on the 
energy audit will provide more energy savings than improving an 
existing facility. Only costs identified in the energy audit for energy 
efficiency projects are allowed.
    (2) The applicant must provide at least 75 percent of eligible 
project costs to complete the project. Applicant in-kind and other 
Federal grant awards cannot be used to meet the 75 percent match 
requirements. However, the Agency will allow third-party, in-kind 
contributions to be used in meeting the matching requirement. Third-
party, in-kind contributions will be limited to 10 percent of the 75 
percent match requirement of the grantee. The Agency will advise if the 
third-party, in-kind contributions are acceptable in accordance with 7 
CFR part 3015.
    (b) The maximum amount of grant assistance to one individual or 
entity will not exceed $750,000.
    (c) Applications for renewable energy systems must be for a minimum 
grant request of $2,500, but no more than $500,000.
    (d) Applications for energy efficiency improvements must be for a 
minimum grant request of $2,500, but no more than $250,000.

Application and Documentation

    (a) Application. Separate applications must be submitted for 
renewable energy system and energy efficiency improvement projects. For 
each type of project, only one application with required copies may be 
submitted.
    (1) Table of Contents. The first item in each application will be a 
detailed Table of Contents in the order presented below. Include page 
numbers for each component of the proposal. Begin pagination 
immediately following the Table of Contents.
    (2) Project Summary. A summary of the project proposal, not to 
exceed one page, must include the following: Title of the project, a 
detailed description of the project including its purpose and need, 
goals and tasks to be accomplished, names of the individuals 
responsible for conducting and completing the tasks, and the expected 
timeframes for completing all tasks, including an operational date. The 
applicant must also clearly state whether the application is for the 
purchase of a renewable energy system or to make energy efficiency 
improvements.
    (3) Eligibility. Each applicant must describe how it meets the 
eligibility requirements.
    (4) Agricultural producer/small business information. All 
applications must contain the following information on the agricultural 
producer or small business seeking funds under this program:
    (i) Business/farm/ranch operation.
    (A) A description of the ownership, including a list of individuals 
and/or entities with ownership interest, names of any corporate 
parents, affiliates, and subsidiaries, as well as a description of the 
relationship, including products, between these entities.
    (B) A description of the operation.
    (ii) Management. The resume of key managers focusing on relevant 
business experience. If a third-party operator is used to monitor and 
manage the project, provide a discussion on the benefits and burdens of 
such monitoring and management as well as the qualifications of the 
third party.
    (iii) Financial information.
    (A) Explanation of demonstrated financial need.
    (B) For rural small businesses, a current balance sheet and income 
statement prepared in accordance with generally accepted accounting 
principles (GAAP) and dated within 90 days of the application. 
Agricultural producers must present financial information in the format 
that is generally required by commercial agriculture lenders. Financial 
information is required on the total operations of the agricultural 
producer/small business and its parent, subsidiary, or affiliates at 
other locations.
    (C) Rural small businesses must provide sufficient information to 
determine total annual receipts of the business and any parent, 
subsidiary, or affiliates at other locations. Voluntarily providing tax 
returns is one means of satisfying this requirement. Information 
provided must be sufficient for the Agency to make a determination of 
total income and cost of goods sold by the business.
    (D) If available, historical financial statements prepared in 
accordance with GAAP for the past 3 years, including income statements 
and balance sheets. If agricultural producers are unable to present 
this information in accordance with GAAP, they may instead present 
financial information for the past 3 years in the format that is 
generally required by commercial agriculture lenders.
    (E) Pro forma balance sheet at startup of the agricultural 
producer's/small business' business that reflects the use of the loan 
proceeds or grant award; and 3 additional years, indicating the 
necessary start-up capital, operating capital, and short-term credit; 
and projected cash flow and income statements for 3 years supported by 
a list of assumptions showing the basis for the projections.
    (F) For agricultural producers, identify the gross market value of 
your agricultural products for the calendar year preceding the year in 
which you submit your application.
    (iv) Production information for renewable energy system projects.
    (A) Provide a statement as to whether the technology to be employed 
by the facility is commercially or pre-commercially available and 
replicable. Provide information to support this position.
    (B) Describe the availability of materials, labor, and equipment 
for the facility.
    (v) Business market information for renewable energy system 
projects.
    (A) Demand. Identify the demand (past, present, and future) for the 
product and/or service and who will buy the product and/or service.

[[Page 25238]]

    (B) Supply. Identify the supply (past, present, and future) of the 
product and/or service and your competitors.
    (C) Market niche. Given the trends in demand and supply, describe 
how the business will be able to sell enough of its product/service to 
be profitable.
    (vi) A Dun and Bradstreet Universal Numbering System (DUNS) number.
    (b) Forms, certifications, and agreements. Each application 
submitted must contain, as applicable, the items identified in 
paragraphs (b)(1) through (15) of this section.
    (1) Form SF-424, ``Application for Federal Assistance.''
    (2) Form SF-424C, ``Budget Information--Construction Programs.'' 
Each cost classification category listed on the form must be filled out 
if it applies to your project. Any cost category item not listed on the 
form that applies to your project can be put under the miscellaneous 
category. Attach a separate sheet if you are using the miscellaneous 
category and list each miscellaneous cost by not allowable and 
allowable costs in the same format as on SF 424C. All project costs 
must be categorized as either allowable or not allowable.
    (3) Form SF-424D, ``Assurances--Construction Programs.''
    (4) AD-1049, ``Certification Regarding Drug-Free Workplace 
Requirements.''
    (5) AD-1048, ``Certification Regarding Debarment, Suspension, 
Ineligibility and Voluntary Exclusion--Lower Tiered Covered 
Transactions.''
    (6) A copy of a bank statement or a copy of the confirmed funding 
commitment from the funding source. Matching funds must be included on 
SF 424 and SF 424C.
    (7) Exhibit A-1, (Certification for Contracts, Grants and Loans) of 
RD Instruction 1940-Q required by section 319 of Public Law 101-121 if 
the grant exceeds $100,000 or Exhibit A-2, Statement of Guarantees of 
RD Instruction 1940-Q required by section 319 of Public Law 101-121 if 
the guaranteed loan exceeds $150,000.
    (8) If the applicant has made or agreed to make payment using funds 
other than Federal appropriated funds to influence or attempt to 
influence a decision in connection with the application, Form SF-LLL, 
``Disclosure of Lobbying Activities,'' must be completed.
    (9) AD-1047, ``Certification Regarding Debarment, Suspension, and 
Other Responsibility Matters[mdash']Primary Covered Transactions.''
    (10) Form RD 400-1, ``Equal Opportunity Agreement.''
    (11) Form RD 400-4, ``Assurance Agreement.''
    (12) If the project involves interconnection to an electric 
utility, a copy of a letter of intent to purchase power, a power 
purchase agreement, a copy of a letter of intent for an interconnection 
agreement, or an interconnection agreement will be required from your 
utility company or other purchaser for renewable energy systems.
    (13) If applicable, intergovernmental consultation comments in 
accordance with Executive Order 12372.
    (14) Applicants and borrowers must provide a certification 
indicating whether or not there is a known relationship or association 
with an Agency employee.
    (15) Environmental review. All applicants must complete Form RD 
1940-20, ``Request for Environmental Information.'' All applicants will 
be responsible for providing all information necessary for the Agency 
to do a National Environmental Policy Act (NEPA) review and analysis in 
accordance with 7 CFR part 1940, subpart G. Any additional 
environmental information required will be conveyed to the applicant 
after a preliminary review of the grant application by the State Rural 
Development Office. Any applicable analyses and studies required as 
part of completing the NEPA analysis (i.e., Archaeological studies, 
Biological Assessments, etc.) will be the responsibility of the 
Applicant. The Applicant should strive to achieve positive community 
support, select good sites, and mitigate environmental impacts 
resulting from their proposals. If an environmental review cannot be 
completed in sufficient time for grant funds to be obligated by 
September 30, 2004, grant funds will not be awarded.
    (c) Feasibility study for renewable energy systems. Each 
application for a renewable energy system project, except for requests 
of $50,000 or less, must include a project-specific feasibility study 
prepared by a qualified independent consultant. The feasibility study 
must include an analysis of the market, financial, economic, technical, 
and management feasibility of the proposed project. The feasibility 
study must also include an opinion and a recommendation by the 
independent consultant.
    (d) Technical requirements reports. The technical report must 
demonstrate that the project design, procurement, installation, 
startup, operation and maintenance of the renewable energy system or 
energy efficiency improvement will operate or perform as specified over 
its design life in a reliable and a cost effective manner. The 
technical report must also identify all necessary project agreements, 
demonstrate that those agreements will be in place, and that necessary 
project equipment and services are available over the design life.
    All technical information provided must follow the format specified 
in paragraphs (d)(1) through (10). Supporting information may be 
submitted in other formats. Preliminary design drawings and process 
flow charts should be included as exhibits. A discussion of each topic 
identified in paragraphs (d)(1) through (10) is not necessary if the 
topic is not applicable to the specific project. Questions identified 
in the Agency's technical review of the project must be answered to the 
Agency's satisfaction before the application will be approved. The 
applicant must submit the original technical requirements report plus 
one copy to the State Rural Development Office. For small solar and 
small wind projects, the narrative portion of technical requirements 
portion of the proposals, excluding supporting documentation and 
drawings, should be less than ten pages. Projects costing more than 
$50,000 require the services of a professional engineer (PE). Depending 
on the level of engineering required for the specific project or if 
necessary to ensure public safety, the services of a PE may be required 
for smaller projects.
    (1) Biomass, bioenergy. The technical requirements specified in 
paragraphs (d)(1)(i) through (x) apply to renewable energy projects 
that produce fuel, thermal energy, or electric power from a biomass 
source, including wood, agricultural residue excluding animal wastes, 
or other energy crops considered biomass or bioenergy projects. The 
major components of bioenergy systems will vary significantly depending 
on the type of feedstock, product, type of process, and size of the 
process but in general includes components around which the balance of 
the system is designed.
    (i) Qualifications of project team. The biomass project team will 
vary according to the complexity and scale of the project. For 
engineered systems, the project team should consist of a system 
designer, a project manager, an equipment supplier, a project engineer, 
a construction contractor or system installer, and a system operator 
and maintainer. One individual or entity may serve more than one role.
    The project team must have demonstrated expertise in similar 
biomass systems development, engineering, installation, and 
maintenance. The applicant must

[[Page 25239]]

provide authoritative evidence that project team service providers have 
the necessary professional credentials or relevant experience to 
perform the required services. The applicant must also provide 
authoritative evidence that vendors of proprietary components can 
provide necessary equipment and spare parts for the system to operate 
over its design life. The application must:
    (A) Discuss the proposed project delivery method. Such methods 
include a design, bid, build where a separate engineering firm may 
design the project and prepare a request for bids and the successful 
bidder constructs the project at the applicant's risk, and a design 
build method, often referred to as turn key, where the applicant 
establishes the specifications for the project and secures the services 
of a developer who will design and build the project at the developer's 
risk;
    (B) Discuss the biomass system equipment manufacturers of major 
components being considered in terms of the length of time in business 
and the number of units installed at the capacity and scale being 
considered;
    (C) Discuss the project manager, equipment supplier, system 
designer, project engineer, and construction contractor qualifications 
for engineering, designing, and installing biomass energy systems 
including any relevant certifications by recognized organizations or 
bodies. Provide a list of the same or similar projects designed, 
installed, or supplied and currently operating and with references if 
available; and
    (D) Describe the system operator's qualifications and experience 
for servicing, operating, and maintaining biomass renewable energy 
equipment or projects. Provide a list of the same or similar projects 
designed, installed, or supplied and currently operating and with 
references if available.
    (ii) Agreements and permits. The applicant must identify all 
necessary agreements and permits required for the project and the 
status and schedule for securing those agreements and permits, 
including the items specified in paragraphs (d)(1)(ii)(A) through (G).
    (A) Biomass systems must be installed in accordance with applicable 
local, State, and national codes and regulations. Identify zoning and 
code issues, and required permits and the schedule for meeting those 
requirements and securing those permits.
    (B) Identify licenses where required and the schedule for obtaining 
those licenses.
    (C) Identify land use agreements required for the project and the 
schedule for securing the agreements and the term of those agreements.
    (D) Identify any permits or agreements required for solid, liquid, 
and gaseous emissions or effluents and the schedule for securing those 
permits and agreements.
    (E) Identify available component warranties for the specific 
project location and size.
    (F) Systems interconnected to the electric power system will need 
arrangements to interconnect with the utility. Identify utility system 
interconnection requirements, power purchase arrangements, or licenses 
where required and the schedule for meeting those requirements and 
obtaining those agreements. This is required even if the system is 
installed on the customer side of the utility meter. For systems 
planning to utilize a local net metering program, describe the 
applicable local net metering program.
    (G) Describe all potential environmental impacts resulting from 
siting issues, construction and operation of the proposed project. 
Identify other site or design alternatives that were considered in your 
planning process. Identify all environmental compliance issues such as 
required permits (i.e., wetland fill, endangered species, etc.)
    (iii) Resource assessment. The applicant must provide adequate and 
appropriate evidence of the availability of the renewable resource 
required for the system to operate as designed. Indicate the type, 
quantity, quality, and seasonality of the biomass resource including 
harvest and storage, where applicable. Where applicable, also indicate 
shipping or receiving method and required infrastructure for shipping. 
For proposed projects with an established resource, provide a summary 
of the resource.
    (iv) Design and engineering. The applicant must provide 
authoritative evidence that the system will be designed and engineered 
so as to meet its intended purpose and need, will ensure public safety, 
mitigate any adverse environmental impacts, and will comply with 
applicable laws, regulations, agreements, permits, codes, and 
standards. Projects shall be engineered by a qualified entity. Systems 
must be engineered as a complete, integrated system with matched 
components. The engineering must be comprehensive including site 
selection, system and component selection, and system monitoring 
equipment. Systems must be constructed by a qualified entity.
    (A) The application must include a concise but complete description 
of the biomass project including location of the project, resource 
characteristics, system specifications, electric power system 
interconnection, and monitoring equipment. Identify possible vendors 
and models of major system components. Describe the expected electric 
power, fuel production, or thermal energy production of the proposed 
system as rated and as expected in actual field conditions. For systems 
with a capacity more than 20 tons per day of biomass, address 
performance on a monthly and annual basis. For small projects such as a 
commercial biomass furnace or pelletizer of up to 5 tons daily 
capacity, proven, commercially available devices need not be addressed 
in detail. Describe the uses of or the market for electricity, heat, or 
fuel produced by the system. Discuss the impact of reduced or 
interrupted biomass availability on the system process.
    (B) The application must include a description of the siting 
criteria used in selecting the project site and the reason for 
elimination of other site alternatives considered and address issues 
such as site access, foundations, backup equipment when applicable, and 
environmental issues with emphasis on land use, air quality, water 
quality, noise pollution, soil degradation, wildlife, habitat 
fragmentation, aesthetics, odor, and other construction and 
installation issues applicable to this type of technology. Identify any 
unique construction and installation issues.
    (C) Sites must be controlled by the agricultural producer or small 
business for the proposed project life or for the financing term of any 
associated federal loans or loan guarantees.
    (v) Project development schedule. The applicant must identify each 
significant task, its beginning and end, and its relationship to the 
time needed to initiate and carry the project through startup and 
shakedown. Provide a detailed description of the project timeline 
including resource assessment, system and site design, permits and 
agreements, equipment procurement, and system installation from 
excavation through startup and shakedown.
    (vi) Financial feasibility. The applicant must provide a study that 
describes costs and revenues of the proposed project to demonstrate the 
financial performance of the project. Provide a detailed analysis and 
description of project costs including project management, resource 
assessment, project design, project permitting, land agreements, 
equipment, site preparation, system installation, startup and 
shakedown, warranties, insurance, financing, professional services, and 
operations and

[[Page 25240]]

maintenance costs. Provide a detailed analysis and description of 
annual project revenues and expenses. Provide a detailed description of 
applicable investment incentives, productivity incentives, loans, and 
grants.
    (vii) Equipment procurement. The applicant must demonstrate that 
equipment required by the system is available and can be procured and 
delivered within the proposed project development schedule. Biomass 
systems may be constructed of components manufactured in more than one 
location. Provide a description of any unique equipment procurement 
issues such as scheduling and timing of component manufacture and 
delivery, ordering, warranties, shipping, receiving, and on-site 
storage or inventory. Procurement must be made in accordance with the 
requirements of 7 CFR part 3015.
    (viii) Equipment installation. The applicant must fully describe 
the management of and plan for site development and system 
installation, provide details regarding the scheduling of major 
installation equipment needed for project construction, and provide a 
description of the startup and shakedown specification and process and 
the conditions required for startup and shakedown for each equipment 
item individually and for the system as a whole.
    (ix) Operations and maintenance. The applicant must identify the 
operations and maintenance requirements of the system necessary for the 
system to operate as designed over the design life. The applicant must:
    (A) Provide information regarding available system and component 
warranties and availability of spare parts;
    (B) For systems having a biomass input capacity exceeding 10 tons 
of biomass per day;
    (1) Describe the routine operations and maintenance requirements of 
the proposed system, including maintenance schedule for the mechanical, 
piping, and electrical systems and system monitoring and control 
requirements. Provide information that supports expected design life of 
the system and timing of major component replacement or rebuilds; and
    (2) Discuss the costs and labor associated with operations and 
maintenance of system and plans for in or outsourcing. Describe 
opportunities for technology transfer for long-term project operations 
and maintenance by a local entity or owner/operator; and
    (C) Provide and discuss the risk management plan for handling 
large, unanticipated failures or major components. Include in the 
discussion, costs and labor associated with operations and maintenance 
of system and plans for in-sourcing or out-sourcing.
    (x) Decommissioning. When uninstalling or removing the project, 
describe the decommissioning process. Describe any issues, any 
environmental compliance requirements, and costs for removal and 
disposal of the system.
    (2) Anaerobic digester projects. The technical requirements 
specified in paragraphs (d)(2)(i) through (x) apply to renewable energy 
projects, called anaerobic digester projects, that use animal waste and 
other organic substrates to produce thermal or electrical energy via 
anaerobic digestion. The major components of an anaerobic digester 
system include the digester, the gas handling and transmission systems, 
and the gas use system.
    (i) Qualifications of project team. The anaerobic digester project 
team should consist of a system designer, a project manager, an 
equipment supplier, a project engineer, a construction contractor, and 
a system operator or maintainer. One individual or entity may serve 
more than one role.
    The project team must have demonstrated commercial-scale expertise 
in anaerobic digester systems development, engineering, installation, 
and maintenance as related to the organic materials and operating mode 
of the system. The applicant must provide authoritative evidence that 
project team service providers have the necessary professional 
credentials or relevant experience to perform the required services. 
The applicant must also provide authoritative evidence that vendors of 
proprietary components can provide necessary equipment and spare parts 
for the system to operate over its design life. The applicant must:
    (A) Discuss the proposed project delivery method. Such methods 
include a design, bid, build where a separate engineering firm may 
design the project and prepare a request for bids and the successful 
bidder constructs the project at the applicant's risk, and a design 
build method, often referred to as turn key, where the applicant 
establishes the specifications for the project and secures the services 
of a developer who will design and build the project at the developer's 
risk;
    (B) Discuss the anaerobic digester system equipment manufacturers 
of major components being considered in terms of the length of time in 
business and the number of units installed at the capacity and scale 
being considered;
    (C) Discuss the project manager, equipment supplier, system 
designer, project engineer, and construction contractor qualifications 
for engineering, designing, and installing anaerobic digester systems 
including any relevant certifications by recognized organizations or 
bodies. Provide a list of the same or similar projects designed, 
installed, or supplied and currently operating consistent with the 
substrate material and with references if available; and
    (D) For regional or centralized digester plants, describe the 
system operator's qualifications and experience for servicing, 
operating, and maintaining similar projects. Farm scale systems may not 
require operator experience as the developer is typically required to 
provide operational training during system startup and shakedown. 
Provide a list of the same or similar projects designed, installed, or 
supplied and currently operating consistent with the substrate material 
and with references if available.
    (ii) Agreements and permits. The applicant must identify all 
necessary agreements and permits required for the project and the 
status and schedule for securing those agreements and permits, 
including the items specified in paragraphs (d)(2)(ii)(A) through (G).
    (A) Anaerobic digester systems must be installed in accordance with 
applicable local, State, and national codes and regulations. Anaerobic 
digesters must also be designed and constructed in accordance with USDA 
anaerobic digester standards. Identify zoning and code issues, and 
required permits and the schedule for meeting those requirements and 
securing those permits.
    (B) Identify licenses where required and the schedule for obtaining 
those licenses.
    (C) For regional or centralized digester plants, identify feedstock 
access agreements required for the project and the schedule for 
securing those agreements and the term of those agreements.
    (D) Identify any permits or agreements required for transport and 
ultimate waste disposal and the schedule for securing those agreements 
and permits.
    (E) Identify available component warranties for the specific 
project location and size.
    (F) Systems interconnected to the electric power system will need 
arrangements to interconnect with the utility. Identify utility system 
interconnection requirements, power purchase arrangements, or licenses 
where required and the schedule for meeting those requirements and

[[Page 25241]]

obtaining those agreements. This is required even if the system is 
installed on the customer side of the utility meter. For systems 
planning to utilize a local net metering program, describe the 
applicable local net metering program.
    (G) Describe all potential environmental impacts resulting from 
siting issues, construction and operation of the proposed project. 
Identify other site or design alternatives that were considered in your 
planning process. Identify all environmental compliance issues such as 
required permits (i.e., wetland fill, endangered species, etc.)
    (iii) Resource assessment. The applicant must provide adequate and 
appropriate evidence of the availability of the renewable resource 
required for the system to operate as designed. Indicate the substrates 
used as digester inputs including animal wastes, food processing 
wastes, or other organic wastes in terms of type, quantity, 
seasonality, and frequency of collection. Describe any special handling 
of feedstock that may be necessary. Describe the process for 
determining the feedstock resource. Provide either tabular values or 
laboratory analysis of representative samples that include 
biodegradability studies to produce gas production estimates for the 
project on daily, monthly, and seasonal basis.
    (iv) Design and engineering. The applicant must provide 
authoritative evidence that the system will be designed and engineered 
so as to meet its intended purpose and need, will ensure public safety, 
mitigate any adverse environmental impacts, and will comply with 
applicable laws, regulations, agreements, permits, codes, and 
standards. Projects shall be engineered by a qualified entity. Systems 
must be engineered as a complete, integrated system with matched 
components. The engineering must be comprehensive including site 
selection, digester component selection, gas handling component 
selection, and gas use component selection. Systems must be constructed 
by a qualified entity.
    (A) The application must include a concise but complete description 
of the anaerobic digester project including location of the project, 
farm description, feedstock characteristics, a step-by-step flowchart 
of unit operations, electric power system interconnection equipment, 
and any required monitoring equipment. Identify possible vendors and 
models of major system components. Provide the expected system energy 
production, heat balances, material balances as part of the unit 
operations flowchart.
    (B) The application must include a description of the siting 
criteria used in selecting the project site and the reason for 
elimination of other site alternatives considered and address issues 
such as site access, foundations, backup equipment when applicable, and 
environmental issues with emphasis on land use, air quality, water 
quality, noise pollution, soil degradation, wildlife, habitat 
fragmentation, aesthetics, odor, and other construction and 
installation issues applicable to this type of technology. Identify any 
unique construction and installation issues.
    (C) Sites must be controlled by the agricultural producer or small 
business for the proposed project life or for the financing term of any 
associated federal loans or loan guarantees.
    (v) Project development schedule. The applicant must identify each 
significant task, its beginning and end, and its relationship to the 
time needed to initiate and carry the project through startup and 
shakedown. Provide a detailed description of the project timeline 
including feedstock assessment, system and site design, permits and 
agreements, equipment procurement, system installation from excavation 
through startup and shakedown, and operator training.
    (vi) Financial feasibility. The applicant must provide a study that 
describes costs and revenues of the proposed project to demonstrate the 
financial performance of the project. Provide a detailed analysis and 
description of project costs including project management, feedstock 
assessment, project design, project permitting, land agreements, 
equipment, site preparation, system installation, startup and 
shakedown, warranties, insurance, financing, professional services, 
training and operations, and maintenance costs of both the digester and 
the gas use systems. Provide a detailed analysis and description of 
annual project revenues and expenses. Provide a detailed description of 
applicable investment incentives, productivity incentives, loans, and 
grants.
    (vii) Equipment procurement. The applicant must demonstrate that 
equipment required by the system is available and can be procured and 
delivered within the proposed project development schedule. Anaerobic 
digester systems may be constructed of components manufactured in more 
than one location. Provide a description of any unique equipment 
procurement issues such as scheduling and timing of component 
manufacture and delivery, ordering, warranties, shipping, receiving, 
and on-site storage or inventory. Procurement must be made in 
accordance with the requirements of 7 CFR part 3015.
    (viii) Equipment installation. The applicant must fully describe 
the management of and plan for site development and system 
installation, provide details regarding the scheduling of major 
installation equipment needed for project construction, and provide a 
description of the startup and shakedown specification and process and 
the conditions required for startup and shakedown for each equipment 
item individually and for the system as a whole.
    (ix) Operations and maintenance. The applicant must identify the 
operations and maintenance requirements of the system necessary for the 
system to operate as designed over the design life. The applicant must:
    (A) Ensure that systems must have at least a 3-year warranty for 
equipment and a 10-year warranty on design. Provide information 
regarding system warranties and availability of spare parts;
    (B) Describe the routine operations and maintenance requirements of 
the proposed project, including maintenance for the digester, the gas 
handling equipment, and the gas use systems. Describe any maintenance 
requirements for system monitoring and control equipment;
    (C) Provide information that supports expected design life of the 
system and the timing of major component replacement or rebuilds;
    (D) Provide and discuss the risk management plan for handling 
large, unanticipated failures of major components. Include in the 
discussion, costs and labor associated with operations and maintenance 
of system and plans for insourcing or outsourcing; and
    (E) Describe opportunities for technology transfer for long-term 
project operations and maintenance by a local entity or owner/operator.
    (x) Decommissioning. When uninstalling or removing the project, 
describe the decommissioning process. Describe any issues, any 
environmental compliance requirements, and costs for removal and 
disposal of the system.
    (3) Geothermal, electric generation. The technical requirements 
specified in paragraphs (d)(3)(i) through (x) apply to geothermal 
projects that produce electric power from the thermal potential of a 
geothermal source. The major components of an electric generating 
geothermal system include the production well, the separator or heat 
exchanger, the turbine, the generator, condenser, and the balance of

[[Page 25242]]

station elements including the, field piping, roads, fencing and 
grading, plant buildings, transformers and other electrical 
infrastructure such as interconnection equipment.
    (i) Qualifications of project team. The electric generating 
geothermal plant project team should consist of a system designer, a 
project manager, an equipment supplier, a project engineer, a 
construction contractor, and a system operator and maintainer. One 
individual or entity may serve more than one role.
    The project team must have demonstrated expertise in geothermal 
electric generation systems development, engineering, installation, and 
maintenance. The applicant must provide authoritative evidence that 
project team service providers have the necessary professional 
credentials or relevant experience to perform the required services. 
The applicant must also provide authoritative evidence that vendors of 
proprietary components can provide necessary equipment and spare parts 
for the system to operate over its design life. The applicant must:
    (A) Discuss the proposed project delivery method. Such methods 
include a design, bid, build where a separate engineering firm may 
design the project and prepare a request for bids and the successful 
bidder constructs the project at the applicant's risk, and a design 
build method, often referred to as turn key, where the applicant 
establishes the specifications for the project and secures the services 
of a developer who will design and build the project at the developer's 
risk;
    (B) Discuss the geothermal plant equipment manufacturers of major 
components being considered in terms of the length of time in business 
and the number of units installed at the capacity and scale being 
considered;
    (C) Discuss the project manager, equipment supplier, system 
designer, project engineer, and construction contractor qualifications 
for engineering, designing, and installing geothermal electric 
generation systems including any relevant certifications by recognized 
organizations or bodies. Provide a list of the same or similar projects 
designed, installed, or supplied and currently operating and with 
references if available; and
    (D) Describe system operator's qualifications and experience for 
servicing, operating, and maintaining electric generating geothermal 
projects. Provide a list of the same or similar projects designed, 
installed, or supplied and currently operating and with references if 
available.
    (ii) Agreements and permits. The applicant must identify all 
necessary agreements and permits required for the project and the 
status and schedule for securing those agreements and permits, 
including the items specified in paragraphs (d)(3)(ii)(A) through (F).
    (A) Electric generating geothermal systems must be installed in 
accordance with applicable local, State, and national codes and 
regulations. Identify zoning and code issues, and required permits and 
the schedule for meeting those requirements and securing those permits.
    (B) Identify any permits or agreements required for well 
construction and for disposal or re-injection of cooled geothermal 
waters and the schedule for securing those agreements and permits.
    (C) Identify land use or access to the resource agreements required 
for the project and the schedule for securing the agreements and the 
term of those agreements.
    (D) Identify available component warranties for the specific 
project location and size.
    (E) Systems interconnected to the electric power system will need 
arrangements to interconnect with the utility. Identify utility system 
interconnection requirements, power purchase arrangements, or licenses 
where required and the schedule for meeting those requirements and 
obtaining those agreements.
    (F) Describe all potential environmental impacts resulting from 
siting issues, construction and operation of the proposed project. 
Identify other site or design alternatives that were considered in your 
planning process. Identify all environmental compliance issues such as 
required permits (i.e., wetland fill, endangered species, etc.)
    (iii) Resource assessment. The applicant must provide adequate and 
appropriate evidence of the availability of the renewable resource 
required for the system to operate as designed. Indicate the quality of 
the geothermal resource including temperature, flow, and sustainability 
and what conversion system is to be installed. Describe any special 
handling of cooled geothermal waters that may be necessary. Describe 
the process for determining the geothermal resource including 
measurement setup for the collection of the geothermal resource data. 
For proposed projects with an established resource, provide a summary 
of the resource and the specifications of the measurement setup.
    (iv) Design and engineering. The applicant must provide 
authoritative evidence that the system will be designed and engineered 
so as to meet its intended purpose and need, will ensure public safety, 
mitigate any adverse environmental impacts, and will comply with 
applicable laws, regulations, agreements, permits, codes, and 
standards. Projects shall be engineered by a qualified entity. Systems 
must be engineered as a complete, integrated system with matched 
components. The engineering must be comprehensive including site 
selection, system and component selection, conversion system component 
and selection, design of the local collection grid, interconnection 
equipment selection, and system monitoring equipment. Systems must be 
constructed by a qualified entity.
    (A) The application must include a concise but complete description 
of the geothermal project including location of the project, resource 
characteristics, thermal system specifications, electric power system 
interconnection equipment and project monitoring equipment. Identify 
possible vendors and models of major system components. Provide the 
expected system energy production on a monthly and annual basis.
    (B) The application must include a description of the siting 
criteria used in selecting the project site and the reason for 
elimination of other site alternatives considered and address issues 
such as site access, foundations, backup equipment when applicable, 
proximity to the electrical grid, environmental issues with emphasis on 
land use, air quality, water quality, noise pollution, soil 
degradation, wildlife, habitat fragmentation, aesthetics, odor, and 
other construction, and installation issues applicable to this type of 
technology. Identify any unique construction and installation issues.
    (C) Sites must be controlled by the agricultural producer or small 
business for the proposed project life or for the financing term of any 
associated federal loans or loan guarantees.
    (v) Project development schedule. The applicant must identify each 
significant task, its beginning and end, and its relationship to the 
time needed to initiate and carry the project through startup and 
shakedown. Provide a detailed description of the project timeline 
including resource assessment, system and site design, permits and 
agreements, equipment procurement, and system installation from 
excavation through startup and shakedown.
    (vi) Financial feasibility. The applicant must provide a study that 
describes costs and revenues of the proposed project to demonstrate the 
financial performance of the project. Provide a detailed analysis and 
description of project costs including project management, resource

[[Page 25243]]

assessment, project design, project permitting, land agreements, 
equipment, site preparation, system installation, startup and 
shakedown, warranties, insurance, financing, professional services, and 
operations and maintenance costs. Provide a detailed analysis and 
description of annual project revenues including electricity sales, 
production tax credits, revenues from green tags, and any other 
production incentive programs throughout the life of the project. 
Provide a detailed description of applicable investment incentives, 
productivity incentives, loans, and grants.
    (vii) Equipment procurement. The applicant must demonstrate that 
equipment required by the system is available and can be procured and 
delivered within the proposed project development schedule. Geothermal 
systems may be constructed of components manufactured in more than one 
location. Provide a description of any unique equipment procurement 
issues such as scheduling and timing of component manufacture and 
delivery, ordering, warranties, shipping, receiving, and on-site 
storage or inventory. Procurement must be made in accordance with the 
requirements of 7 CFR part 3015.
    (viii) Equipment installation. The applicant must fully describe 
the management of and plan for site development and system 
installation, provide details regarding the scheduling of major 
installation equipment needed for project construction, and provide a 
description of the startup and shakedown specification and process and 
the conditions required for startup or shakedown for each equipment 
item individually and for the system as a whole.
    (ix) Operations and maintenance. The applicant must identify the 
operations and maintenance requirements of the system necessary for the 
system to operate as designed over the design life. The applicant must:
    (A) Ensure that systems must have at least a 3-year warranty for 
equipment. Provide information regarding turbine warranties and 
availability of spare parts;
    (B) Describe the routine operations and maintenance requirements of 
the proposed project, including maintenance for the mechanical and 
electrical systems and system monitoring and control requirements;
    (C) Provide information that supports expected design life of the 
system and timing of major component replacement or rebuilds;
    (D) Provide and discuss the risk management plan for handling 
large, unanticipated failures of major components such as the turbine. 
Include in the discussion, costs and labor associated with operations 
and maintenance of system and plans for insourcing or outsourcing; and
    (E) Describe opportunities for technology transfer for long term 
project operations and maintenance by a local entity or owner/operator.
    (x) Decommissioning. When uninstalling or removing the project, 
describe the decommissioning process. Describe any issues, any 
environmental compliance requirements, and costs for removal and 
disposal of the system.
    (4) Geothermal, direct use. The technical requirements specified in 
paragraphs (d)(4)(i) through (x) apply to geothermal projects that 
directly use thermal energy from a geothermal source. The major 
components of a direct use geothermal system include the production 
well, the heat exchanger, pumps, and the balance of station elements 
including the, field piping, re-injection wells or other disposal 
equipment as required, and final point-of-use heat exchangers and 
control systems.
    (i) Qualifications of project team. The geothermal project team 
should consist of a system designer, a project manager, an equipment 
supplier, a project engineer, a construction contractor, and a system 
operator and maintainer. One individual or entity may serve more than 
one role.
    The project team must have demonstrated expertise in geothermal 
heating systems development, engineering, installation, and 
maintenance. The applicant must provide authoritative evidence that 
project team service providers have the necessary professional 
credentials or relevant experience to perform the required services. 
The applicant must also provide authoritative evidence that vendors of 
proprietary components can provide necessary equipment and spare parts 
for the system to operate over its design life. The applicant must:
    (A) Discuss the proposed project delivery method. Such method 
include a design, bid, build where a separate engineering firm may 
design the project and prepare a request for bids and the successful 
bidder constructs the project at the applicant's risk, and a design 
build method, often referred to as turn key, where the applicant 
establishes the specifications for the project and secures the services 
of a developer who will design and build the project at the developer's 
risk;
    (B) Discuss the geothermal system equipment manufacturers of major 
components being considered in terms of the length of time in business 
and the number of units installed at the capacity and scale being 
considered;
    (C) Discuss the project manager, equipment supplier, system 
designer, project engineer, and construction contractor qualifications 
for engineering, designing, and installing direct use geothermal 
systems including any relevant certifications by recognized 
organizations or bodies. Provide a list of the same or similar projects 
designed, installed, or supplied and currently operating and with 
references if available; and
    (D) Describe system operator's qualifications and experience for 
servicing, operating, and maintaining direct use generating geothermal 
projects. Provide a list of the same or similar projects designed, 
installed, or supplied and currently operating and with references if 
available.
    (ii) Agreements and permits. The applicant must identify all 
necessary agreements and permits required for the project and the 
status and schedule for securing those agreements and permits, 
including the items specified in paragraphs (d)(4)(ii)(A) through (F).
    (A) Direct use geothermal systems must be installed in accordance 
with applicable local, State, and national codes and regulations. 
Identify zoning and code issues, and required permits and the schedule 
for meeting those requirements and securing those permits.
    (B) Identify licenses where required and the schedule for obtaining 
those licenses.
    (C) Identify land use or access to the resource agreements required 
for the project and the schedule for securing the agreements and the 
term of those agreements.
    (D) Identify any permits or agreements required for well 
construction and for disposal or re-injection of cooled geothermal 
waters and the schedule for securing those permits and agreements.
    (E) Identify available component warranties for the specific 
project location and size.
    (F) Describe all potential environmental impacts resulting from 
siting issues, construction and operation of the proposed project. 
Identify other site or design alternatives that were considered in your 
planning process. Identify all environmental compliance issues such as 
required permits (i.e., wetland fill, endangered species, etc.)
    (iii) Resource assessment. The applicant must provide adequate and 
appropriate evidence of the availability

[[Page 25244]]

of the renewable resource required for the system to operate as 
designed. Indicate the quality of the geothermal resource including 
temperature, flow, and sustainability and what direct use system is to 
be installed. Describe any special handling of cooled geothermal waters 
that may be necessary. Describe the process for determining the 
geothermal resource including measurement setup for the collection of 
the geothermal resource data. For proposed projects with an established 
resource, provide a summary of the resource and the specifications of 
the measurement setup.
    (iv) Design and engineering. The applicant must provide 
authoritative evidence that the system will be designed and engineered 
so as to meet its intended purpose and need, will ensure public safety, 
mitigate any adverse environmental impacts, and will comply with 
applicable laws, regulations, agreements, permits, codes, and 
standards. Projects shall be engineered by a qualified entity. Systems 
must be engineered as a complete, integrated system with matched 
components. The engineering must be comprehensive including site 
selection, system and component selection, thermal system component 
selection, and system monitoring equipment. Systems must be constructed 
by a qualified entity.
    (A) The application must include a concise but complete description 
of the geothermal project including location of the project, resource 
characteristics, thermal system specifications, and monitoring 
equipment. Identify possible vendors and models of major system 
components. Provide the expected system energy production on a monthly 
and annual basis.
    (B) The application must include a description of the siting 
criteria used in selecting the project site and the reason for 
elimination of other site alternatives considered and address issues 
such as, site access, foundations, thermal backup equipment, and 
environmental issues with emphasis on land use, air quality, water 
quality, noise pollution, soil degradation, wildlife, habitat 
fragmentation, aesthetics, odor, and other construction, and 
installation issues applicable to this type of technology. Identify any 
unique construction and installation issues.
    (C) Sites must be controlled by the agricultural producer or small 
business for the proposed project life or for the financing term of any 
associated federal loans or loan guarantees.
    (v) Project development schedule. The applicant must identify each 
significant task, its beginning and end, and its relationship to the 
time needed to initiate and carry the project through startup and 
shakedown. Provide a detailed description of the project timeline 
including resource assessment, system and site design, permits and 
agreements, equipment procurement, and system installation from 
excavation through startup and shakedown.
    (vi) Financial feasibility. The applicant must provide a study that 
describes costs and revenues of the proposed project to demonstrate the 
financial performance of the project. Provide a detailed analysis and 
description of project costs including project management, resource 
assessment, project design, project permitting, land agreements, 
equipment, site preparation, system installation, startup and 
shakedown, warranties, insurance, financing, professional services, and 
operations and maintenance costs. Provide a detailed analysis and 
description of annual project revenues and expenses. Provide a detailed 
description of applicable investment incentives, productivity 
incentives, loans, and grants.
    (vii) Equipment procurement. The applicant must demonstrate that 
equipment required by the system is available and can be procured and 
delivered within the proposed project development schedule. Geothermal 
systems may be constructed of components manufactured in more than one 
location. Provide a description of any unique equipment procurement 
issues such as scheduling and timing of component manufacture and 
delivery, ordering, warranties, shipping, receiving, and on-site 
storage or inventory. Procurement must be made in accordance with the 
requirements of 7 CFR part 3015.
    (viii) Equipment installation. The applicant must fully describe 
the management of and plan for site development and system 
installation, provide details regarding the scheduling of major 
installation equipment needed for project construction, and provide a 
description of the startup and shakedown specification and process and 
the conditions required for startup and shakedown for each equipment 
item individually and for the system as a whole.
    (ix) Operations and maintenance. The applicant must identify the 
operations and maintenance requirements of the system necessary for the 
system to operate as designed over the design life. The applicant must:
    (A) Ensure that systems must have at least a 3-year warranty for 
equipment. Provide information regarding system warranties and 
availability of spare parts;
    (B) Describe the routine operations and maintenance requirements of 
the proposed project, including maintenance for the mechanical and 
electrical systems and system monitoring and control requirements;
    (C) Provide information that supports expected design life of the 
system and timing of major component replacement or rebuilds;
    (D) Provide and discuss the risk management plan for handling 
large, unanticipated failures of major components. Include in the 
discussion, costs and labor associated with operations and maintenance 
of system and plans for insourcing or outsourcing; and
    (E) Describe opportunities for technology transfer for long term 
project operations and maintenance by a local entity or owner/operator.
    (x) Decommissioning. When uninstalling or removing the project, 
describe the decommissioning process. Describe any issues, any 
environmental compliance requirements, and costs for removal and 
disposal of the system.
    (5) Hydrogen. The technical requirements specified in paragraphs 
(d)(5)(i) through (x) apply to renewable energy projects that produce 
hydrogen and renewable energy projects that use mechanical or electric 
power or thermal energy from a renewable resource using hydrogen as an 
energy transport medium. The major components of hydrogen systems 
include reformers, electrolyzers, hydrogen compression and storage 
components, and fuel cells.
    (i) Qualifications of project team. The hydrogen project team will 
vary according to the complexity and scale of the project. For 
engineered systems, the project team should consist of a system 
designer, a project manager, an equipment supplier, a project engineer, 
a construction contractor or system installer, and a system operator 
and maintainer. One individual or entity may serve more than one role.
    The project team must have demonstrated expertise in similar 
hydrogen systems development, engineering, installation, and 
maintenance. The applicant must provide authoritative evidence that 
project team service providers have the necessary professional 
credentials or relevant experience to perform the required services. 
The applicant must also provide authoritative evidence that vendors of 
proprietary components can provide necessary equipment and spare parts 
for the system to operate over its design life. The applicant must:

[[Page 25245]]

    (A) Discuss the proposed project delivery method. Such methods 
include a design, bid, build where a separate engineering firm may 
design the project and prepare a request for bids and the successful 
bidder constructs the project at the applicant's risk, and a design 
build method, often referred to as turn key, where the applicant 
establishes the specifications for the project and secures the services 
of a developer who will design and build the project at the developer's 
risk;
    (B) Discuss the hydrogen system equipment manufacturers of major 
components for the hydrogen system being considered in terms of the 
length of time in the business and the number of units installed at the 
capacity and scale being considered;
    (C) Discuss the project manager, equipment supplier, system 
designer, project engineer, and construction contractor qualifications 
for engineering, designing, and installing hydrogen systems including 
any relevant certifications by recognized organizations or bodies. 
Provide a list of the same or similar projects designed, installed, or 
supplied and currently operating and with references if available; and
    (D) Describe the system operator's qualifications and experience 
for servicing, operating, and maintaining hydrogen system equipment or 
projects. Provide a list of the same or similar projects designed, 
installed, or supplied and currently operating and with references if 
available.
    (ii) Agreements and permits. The applicant must identify all 
necessary agreements and permits required for the project and the 
status and schedule for securing those agreements and permits, 
including the items specified in paragraphs (d)(5)(ii)(A) through (G).
    (A) Hydrogen systems must be installed in accordance with 
applicable local, State, and national codes and regulations. Identify 
zoning and building code issues, and required permits and the schedule 
for meeting those requirements and securing those permits.
    (B) Identify licenses where required and the schedule for obtaining 
those licenses.
    (C) Identify land use agreements required for the project and the 
schedule for securing the agreements and the term of those agreements.
    (D) Identify any permits or agreements required for solid, liquid, 
and gaseous emissions or effluents and the schedule for securing those 
permits and agreements.
    (E) Identify available component warranties for the specific 
project location and size.
    (F) Systems interconnected to the electric power system will need 
arrangements to interconnect with the utility. Identify utility system 
interconnection requirements, power purchase arrangements, or licenses 
where required and the schedule for meeting those requirements and 
obtaining those agreements. This is required even if the system is 
installed on the customer side of the utility meter. For systems 
planning to utilize a local net metering program, provide a description 
of the applicable local net metering program.
    (G) Describe all potential environmental impacts resulting from 
siting issues, construction and operation of the proposed project. 
Identify other site or design alternatives that were considered in your 
planning process. Identify all environmental compliance issues such as 
required permits (i.e., wetland fill, endangered species, etc.)
    (iii) Resource assessment. The applicant must provide adequate and 
appropriate evidence of the availability of the renewable resource 
required for the system to operate as designed. Indicate the type, 
quantity, quality, and seasonality of the biomass resource. For solar, 
wind, or geothermal sources of energy used to generate hydrogen, 
indicate the local renewable resource where the hydrogen system is to 
be installed. Local resource maps may be used as an acceptable 
preliminary source of renewable resource data. For proposed projects 
with an established renewable resource, provide a summary of the 
resource.
    (iv) Design and engineering. The applicant must provide 
authoritative evidence that the system will be designed and engineered 
so as to meet its intended purpose and need, will ensure public safety, 
mitigate any adverse environmental impacts, and will comply with 
applicable laws, regulations, agreements, permits, codes, and 
standards. Projects shall be engineered by a qualified entity. Systems 
must be engineered as a complete, integrated system with matched 
components. The engineering must be comprehensive including site 
selection, system and component selection, and system monitoring 
equipment. Systems must be constructed by a qualified entity.
    (A) The application must include a concise but complete description 
of the hydrogen project including location of the project, resource 
characteristics, system specifications, electric power system 
interconnection equipment, and monitoring equipment. Identify possible 
vendors and models of major system components. Describe the expected 
electric power, fuel production, or thermal energy production of the 
proposed system. Address performance on a monthly and annual basis. 
Describe the uses of or the market for electricity, heat, or fuel 
produced by the system. Discuss the impact of reduced or interrupted 
resource availability on the system process.
    (B) The application must include a description of the siting 
criteria used in selecting the project site and the reason for 
elimination of other site alternatives considered and address issues 
such as site access, foundations, backup equipment when applicable, and 
any environmental issues and safety concerns with emphasis on land use, 
air quality, water quality, noise pollution, soil degradation, 
wildlife, habitat fragmentation, aesthetics, odor, and other 
construction and installation issues applicable to this type of 
technology. Identify any unique construction and installation issues.
    (C) Sites must be controlled by the agricultural producer or small 
business for the proposed project life or for the financing term of any 
associated federal loans or loan guarantees.
    (v) Project development schedule. The applicant must identify each 
significant task, its beginning and end, and its relationship to the 
time needed to initiate and carry the project through startup and 
shakedown. Provide a detailed description of the project timeline 
including resource assessment, system and site design, permits and 
agreements, equipment procurement, and system installation from 
excavation through startup and shakedown.
    (vi) Financial feasibility. The applicant must provide a study that 
describes costs and revenues of the proposed project to demonstrate the 
financial performance of the project. Provide a detailed analysis and 
description of project costs including project management, resource 
assessment, project design and engineering, project permitting, land 
agreements, equipment, site preparation, system installation, startup 
and shakedown, warranties, insurance, financing, professional services, 
and operations and maintenance costs. Provide a detailed analysis and 
description of annual project revenues and expenses. Provide a detailed 
description of applicable investment incentives, productivity 
incentives, loans, and grants.
    (vii) Equipment procurement. The applicant must demonstrate that 
equipment required by the system is

[[Page 25246]]

available and can be procured and delivered within the proposed project 
development schedule. Hydrogen systems may be constructed of components 
manufactured in more than one location. Provide a description of any 
unique equipment procurement issues, such as scheduling and timing of 
component manufacture and delivery, ordering, warranties, shipping, and 
receiving, and on-site storage or inventory. Procurement must be made 
in accordance with the requirements of 7 CFR part 3015.
    (viii) Equipment installation. The applicant must fully describe 
the management of and plan for site development and system 
installation, provide details regarding the scheduling of major 
installation equipment needed for project construction, and provide a 
description of the startup and shakedown specification and process and 
the conditions required for startup and shakedown for each equipment 
item individually and for the system as a whole.
    (ix) Operations and maintenance. The applicant must identify the 
operations and maintenance requirements of the system necessary for the 
system to operate as designed over the design life. The applicant must:
    (A) Provide information regarding system warranties and 
availability of spare parts;
    (B) Describe the routine operations and maintenance requirements of 
the proposed project, including maintenance of the reformer, 
electrolyzer, or fuel cell as appropriate, and other mechanical, 
piping, and electrical systems and system monitoring and control 
requirements;
    (C) Provide information that supports expected design life of the 
system and timing of major component replacement or rebuilds;
    (D) Provide and discuss the risk management plan for handling 
large, unanticipated failures of major components. Include in the 
discussion, costs and labor associated with operations and maintenance 
of system and plans for in or outsourcing; and
    (E) Describe opportunities for technology transfer for long term 
project operations and maintenance by a local entity or owner/operator.
    (x) Decommissioning. When uninstalling or removing the project, 
describe the decommissioning process. Describe any issues, any 
environmental compliance requirements, and costs for removal and 
disposal of the system.
    (6) Solar, small. The technical requirements specified in 
paragraphs (d)(6)(i) through (x) of this section apply to small solar 
electric projects and small solar thermal projects. Small solar 
electric projects are those for which the rated power of the system is 
10kW or smaller. The major components of a small solar electric system 
are the solar panels, the support structure, the foundation, the power 
conditioning equipment, the interconnection equipment, surface or 
submersible water pumps, energy storage equipment and supporting 
documentation including operations and maintenance manuals. Small solar 
electric projects are either stand-alone (off grid) or interconnected 
to the grid at less than 600 volts (on grid). Small solar thermal 
projects are those for which the rated storage volume of the system is 
240 gallons, or smaller. The major components of a small solar thermal 
system are the solar collector(s), the support structure, the 
foundation, the circulation pump(s) and piping, heat exchanger (if 
required), energy storage equipment and support.
    (i) Qualifications of project team. The small solar project team 
should consist of a system designer, a project manager or general 
contractor, an equipment supplier of major components, a system 
installer, a system maintainer, and, in some cases, the owner of the 
application or load served by the system. One individual or entity may 
serve more than one role.
    The applicant must provide authoritative evidence that project team 
service providers have the necessary professional credentials or 
relevant experience to perform the required services. The applicant 
must also provide authoritative evidence that vendors of proprietary 
components can provide necessary equipment and spare parts for the 
system to operate over its design life. The applicant must:
    (A) Discuss the qualifications of the suppliers of major components 
being considered;
    (B) Describe the knowledge, skills, and abilities needed to 
service, operate, and maintain the system for the proposed application; 
and
    (C) Discuss the project manager, system designer, and system 
installer qualifications for engineering, designing, and installing 
small solar systems including any relevant certifications by recognized 
organizations or bodies. Provide a list of the same or similar systems 
designed or installed by the design and installation team and currently 
operating and with references if available.
    (ii) Agreements and permits. The applicant must identify all 
necessary agreements and permits required for the project and the 
status and schedule for securing those agreements and permits, 
including the items specified in paragraphs (d)(6)(ii)(A) through (D).
    (A) Small solar systems must be installed in accordance with local, 
State, and national building and electrical codes and regulations. 
Identify zoning, building and electrical code issues, and required 
permits and the schedule for meeting those requirements and securing 
those permits.
    (B) Identify available component warranties for the specific 
project location and size.
    (C) Small solar electric systems interconnected to the electric 
power system will need arrangements to interconnect with the utility. 
Identify utility system interconnection requirements, power purchase 
arrangements, or licenses where required and the schedule for meeting 
those requirements and obtaining those agreements. This is required 
even if the system is installed on the customer side of the utility 
meter. For systems planning to utilize a local net metering program, 
describe the applicable local net metering program.
    (D) Describe all potential environmental impacts resulting from 
siting issues, construction and operation of the proposed project. 
Identify other site or design alternatives that were considered in your 
planning process. Identify all environmental compliance issues such as 
required permits (i.e., wetland fill, endangered species, etc.)
    (iii) Resource assessment. The applicant must provide adequate and 
appropriate evidence of the availability of the renewable resource 
required for the system to operate as designed. Describe the local 
solar resource where the solar system is to be installed. Acceptable 
sources of solar resource data include state solar maps and nearby 
weather station data. Incorporate information from state solar resource 
maps when possible. Indicate the source of the solar data and 
assumptions made when applying nearby solar data to the site.
    (iv) Design and engineering. The applicant must provide 
authoritative evidence that the system will be designed and engineered 
so as to meet its intended purpose and need, will ensure public safety, 
mitigate any adverse environmental impacts, and will comply with 
applicable laws, regulations, agreements, permits, codes, and 
standards. For small solar electric systems, the engineering must be 
comprehensive, including solar collector design and selection, support 
structure design and selection, power conditioning design and 
selection, surface or submersible water pumps and energy storage 
requirements as

[[Page 25247]]

applicable, and selection of cabling, disconnects and interconnection 
equipment. For small solar thermal systems, the engineering must be 
comprehensive, including solar collector design and selection, support 
structure design and selection, pump and piping design and selection, 
and energy storage design and selection.
    (A) The application must include a concise but complete description 
of the small solar system including location of the project and 
proposed equipment specifications. Identify possible vendors and models 
of major system components. Provide the expected system energy 
production based on available solar resource data on a monthly (when 
possible) and annual basis and how the energy produced by the system 
will be used.
    (B) The application must include a description of the siting 
criteria used in selecting the project site and the reason for 
elimination of other site alternatives considered and address issues 
such as solar access, site access, foundations, backup equipment when 
applicable, orientation, proximity to the load or the electrical grid, 
unique safety concerns, and environmental issues with emphasis on land 
use, air quality, water quality, noise pollution, soil degradation, 
wildlife, habitat fragmentation, aesthetics, odor, and other 
construction, and installation issues, and whether special 
circumstances exist applicable to this type of technology.
    (C) Sites and application load must be controlled by the 
agricultural producer or small business for the proposed project life 
or for the financing term of any associated federal loans or loan 
guarantees.
    (v) Project development schedule. The applicant must identify each 
significant task, its beginning and end, and its relationship to the 
time needed to initiate and carry the project through startup and 
shakedown. Provide a detailed description of the project timeline 
including system and site design, permits and agreements, equipment 
procurement, and system installation from excavation through startup 
and shakedown.
    (vi) Financial feasibility. The applicant must provide a study that 
describes costs and revenues of the proposed project to demonstrate the 
financial performance of the project. Provide a detailed analysis and 
description of project costs including design, permitting, equipment, 
site preparation, system installation, system startup and shakedown, 
warranties, insurance, financing, professional services, and operations 
and maintenance costs. Provide a detailed description of applicable 
investment incentives, productivity incentives, loans, and grants. 
Provide a detailed description of historic or expected energy use and 
expected energy offsets or sales on monthly and annual bases.
    (vii) Equipment procurement. The applicant must demonstrate that 
equipment required by the system is available and can be procured and 
delivered within the proposed project development schedule. Small solar 
systems may be constructed of components manufactured in more than one 
location. Provide a description of any unique equipment procurement 
issues such as scheduling and timing of component manufacture and 
delivery, ordering, warranties, shipping, receiving, and on-site 
storage or inventory. Provide a detailed description of equipment 
certification. Procurement must be made in accordance with the 
requirements of 7 CFR part 3015.
    (viii) Equipment installation. The applicant must fully describe 
the management of and plan for site development and system 
installation, provide details regarding the scheduling of major 
installation equipment needed for project construction, and provide a 
description of the startup and shakedown specification and process and 
the conditions required for startup and shakedown for each equipment 
item individually and for the system as a whole.
    (ix) Operations and maintenance. The applicant must identify the 
operations and maintenance requirements of the system necessary for the 
system to operate as designed over the design life. The applicant must:
    (A) Ensure that systems must have at least a 5-year warranty for 
equipment. Provide information regarding system warranty and 
availability of spare parts;
    (B) Describe the routine operations and maintenance requirements of 
the proposed system, including maintenance schedules for the mechanical 
and electrical and software systems;
    (C) For owner maintained portions of the system, describe any 
unique knowledge, skills, or abilities needed for service operations or 
maintenance; and
    (D) Provide information regarding expected system design life and 
timing of major component replacement or rebuilds. Include in the 
discussion, costs and labor associated with operations and maintenance 
of system and plans for in or outsourcing.
    (x) Decommissioning. When uninstalling or removing the project, 
describe the decommissioning process. Describe any issues, any 
environmental compliance requirements, and costs for removal and 
disposal of the system.
    (7) Solar, large. The technical requirements specified in 
paragraphs (d)(7)(i) through (x) apply to large solar electric projects 
and large solar thermal projects. Large solar electric systems are 
those for which the rated power of the system is larger than 10kW. The 
major components of a large solar electric system are the solar panels, 
the support structure, the foundation, the power conditioning 
equipment, the interconnection equipment, surface or submersible water 
pumps and energy storage equipment and supporting documentation 
including operations and maintenance manuals. Large solar electric 
systems are either stand-alone (off grid) or interconnected to the grid 
(on grid.) Large solar thermal systems are those for which the rated 
storage volume of the system is greater than 240 gallons. The major 
components of a small solar thermal system are the solar collector(s), 
the support structure, the foundation, the circulation pump(s) and 
piping, heat exchanger (if required), energy storage equipment and 
supporting documentation including operations and maintenance manuals.
    (i) Qualifications of project team. The large solar project team 
should consist of an equipment supplier of major components, a project 
manager, general contractor, a system engineer, a system installer, and 
system maintainer. One individual or entity may serve more than one 
role.
    The applicant must provide authoritative evidence that project team 
service providers have the necessary professional credentials or 
relevant experience to perform the required services. The applicant 
must also provide authoritative evidence that vendors of proprietary 
components can provide necessary equipment and spare parts for the 
system to operate over its design life. The applicant must:
    (A) Discuss the proposed project delivery method. Such methods 
include a design, bid, build where a separate engineering firm may 
design the project and prepare a request for bids and the successful 
bidder constructs the project at the applicant's risk, and a design 
build method, often referred to as turn key, where the applicant 
establishes the specifications for the project and secures the services 
of a developer who will design and build the project at the developer's 
risk;
    (B) Discuss the qualifications of the suppliers of major components 
being considered;
    (C) Discuss the project manager, general contractor, system 
engineer, and

[[Page 25248]]

system installer qualifications for engineering, designing, and 
installing large solar systems including any relevant certifications by 
recognized organizations or bodies. Provide a list of the same or 
similar systems designed or installed by the design, engineering, and 
installation team and currently operating and with references if 
available; and
    (D) Describe the system operator's qualifications and experience 
for servicing, operating, and maintaining the system for the proposed 
application. Provide a list of the same or similar systems designed or 
installed by the design, engineering, and installation team and 
currently operating and with references if available.
    (ii) Agreements and permits. The applicant must identify all 
necessary agreements and permits required for the project and the 
status and schedule for securing those agreements and permits, 
including the items specified in paragraphs (d)(7)(ii)(A) through (D).
    (A) Large solar systems must be installed in accordance with local, 
State, and national building and electrical codes and regulations. 
Identify zoning, building and electrical code issues, and required 
permits and the schedule for meeting those requirements and securing 
those permits.
    (B) Identify available component warranties for the specific 
project location and size.
    (C) Large solar electric systems interconnected to the electric 
power system will need arrangements to interconnect with the utility. 
Identify utility system interconnection requirements, power purchase 
arrangements, or licenses where required and the schedule for meeting 
those requirements and obtaining those agreements. This is required 
even if the system is installed on the customer side of the utility 
meter. For systems planning to utilize a local net metering program, 
describe the applicable local net metering program.
    (D) Describe all potential environmental impacts resulting from 
siting issues, construction and operation of the proposed project. 
Identify other site or design alternatives that were considered in your 
planning process. Identify all environmental compliance issues such as 
required permits (i.e., wetland fill, endangered species, etc.)
    (iii) Resource assessment. The applicant must provide adequate and 
appropriate evidence of the availability of the renewable resource 
required for the system to operate as designed. Describe the local 
solar resource where the solar system is to be installed. Acceptable 
sources of solar resource data include state solar maps and nearby 
weather station data. Incorporate information from state solar resource 
maps when possible. Indicate the source of the solar data and 
assumptions made when applying nearby solar data to the site.
    (iv) Design and engineering. The applicant must provide 
authoritative evidence that the system will be designed and engineered 
so as to meet its intended purpose and need, will ensure public safety, 
mitigate any adverse environmental impacts, and will comply with 
applicable laws, regulations, agreements, permits, codes, and 
standards.
    (A) For large solar electric systems, the engineering must be 
comprehensive, including solar collector design and selection, support 
structure design and selection, power conditioning design and 
selection, surface or submersible water pumps and energy storage 
requirements as applicable, and selection of cabling, disconnects and 
interconnection equipment. A complete set of engineering drawings, 
stamped by a professional engineer must be provided.
    (B) For large solar thermal systems, the engineering must be 
comprehensive, including solar collector design and selection, support 
structure design and selection, pump and piping design and selection, 
and energy storage design and selection. Provide a complete set of 
engineering drawings, stamped by a professional engineer.
    (C) For either type of system, provide a concise but complete 
description of the large solar system including location of the project 
and proposed equipment and system specifications. Identify possible 
vendors and models of major system components. Provide the expected 
system energy production based on available solar resource data on a 
monthly (when possible) and annual basis and how the energy produced by 
the system will be used.
    (D) For either type of system, provide a description of the project 
site and address issues such as, solar access, orientation, proximity 
to the load or the electrical grid, environmental concerns, unique 
safety concerns, construction, and installation issues and whether 
special circumstances exist.
    (E) Sites must be controlled by the agricultural producer or small 
business for the proposed project life or for the financing term of any 
associated federal loans or loan guarantees.
    (v) Project development schedule. The applicant must identify each 
significant task, its beginning and end, and its relationship to the 
time needed to initiate and carry the project through startup and 
shakedown. Provide a detailed description of the project timeline 
including system and site design, permits and agreements, equipment 
procurement, and system installation from excavation through startup 
and shakedown.
    (vi) Financial feasibility. The applicant must provide a study that 
describes costs and revenues of the proposed project to demonstrate the 
financial performance of the project. Provide a detailed analysis and 
description of project costs including design and engineering, 
permitting, equipment, site preparation, system installation, system 
startup and shakedown, warranties, insurance, financing, professional 
services, and operations and maintenance costs. Provide a detailed 
description of applicable investment incentives, productivity 
incentives, loans, and grants. Provide a detailed description of 
historic or expected energy use and expected energy offsets or sales on 
a monthly and annual basis.
    (vii) Equipment procurement. The applicant must demonstrate that 
equipment required by the system is available and can be procured and 
delivered within the proposed project development schedule. Large solar 
systems may be constructed of components manufactured in more than one 
location. Provide a description of any unique equipment procurement 
issues such as scheduling and timing of component manufacture and 
delivery, ordering, warranties, shipping, receiving, and on-site 
storage or inventory. Provide a detailed description of equipment 
certification. Procurement must be made in accordance with the 
requirements of 7 CFR part 3015.
    (viii) Equipment installation. The applicant must fully describe 
the management of and plan for site development and system 
installation, provide details regarding the scheduling of major 
installation equipment, including cranes and other devices, needed for 
project construction, and provide a description of the startup and 
shakedown specification and process and the conditions required for 
startup and shakedown for each equipment item individually and for the 
system as a whole.
    (ix) Operations and maintenance. The applicant must identify the 
operations and maintenance requirements of the system necessary for the 
system to operate as designed over the design life. The applicant must:
    (A) Ensure that systems must have at least a 5-year warranty for 
equipment.

[[Page 25249]]

Provide information regarding system warranty and availability of spare 
parts;
    (B) Describe the routine operations and maintenance requirements of 
the proposed system, including maintenance schedules for the mechanical 
and electrical and software systems;
    (C) For owner maintained portions of the system, describe any 
unique knowledge, skills, or abilities needed for service operations or 
maintenance; and
    (D) Provide information regarding expected system design life and 
timing of major component replacement or rebuilds. Include in the 
discussion, costs and labor associated with operations and maintenance 
of system and plans for insourcing or outsourcing.
    (x) Decommissioning. When uninstalling or removing the project, 
describe the decommissioning process. Describe any issues, any 
environmental compliance requirements, and costs for removal and 
disposal of the system.
    (8) Wind, small. The technical requirements specified in paragraphs 
(d)(8)(i) through (x) apply to wind energy systems for which the rated 
power of the wind turbine is 100kW or smaller and with a generator hub 
height of 120 ft or less. Such systems are considered small wind 
systems. The major components of a small wind system are the wind 
turbine, the tower, the foundation, the inverter, the interconnection 
equipment and energy storage when applicable. A small wind system is 
either stand-alone or connected to the local electrical system at less 
than 600 volts.
    (i) Qualifications of project team. The small wind project team 
should consist of a system designer, a project manager or general 
contractor, an equipment supplier of major components, a system 
installer, a system maintainer, and, in some cases, the owner of the 
application or load served by the system. One individual or entity may 
serve more than one role.
    The applicant must provide authoritative evidence that project team 
service providers have the necessary professional credentials or 
relevant experience to perform the required services. The applicant 
must also provide authoritative evidence that vendors of proprietary 
components can provide necessary equipment and spare parts for the 
system to operate over its design life. The applicant must:
    (A) Discuss the small wind turbine manufacturers and other 
equipment suppliers of major components being considered in terms of 
the length of time in business and the number of units installed at the 
capacity and scale being considered;
    (B) Describe the knowledge, skills, and abilities needed to 
service, operate, and maintain the system for the proposed application; 
and
    (C) Discuss the project manager, system designer, and system 
installer qualifications for engineering, designing, and installing 
small wind systems including any relevant certifications by recognized 
organizations or bodies. Provide a list of the same or similar systems 
designed, installed, or supplied and currently operating and with 
references if available.
    (ii) Agreements and permits. The applicant must identify all 
necessary agreements and permits required for the project and the 
status and schedule for securing those agreements and permits, 
including the items specified in paragraphs (d)(8)(ii)(A) through (D).
    (A) Small wind systems must be installed in accordance with 
applicable local, State, and national building and electrical codes and 
regulations. Identify zoning, building and electrical code issues, and 
required permits and the schedule for meeting those requirements and 
securing those permits.
    (B) Identify available component warranties for the specific 
project location and size.
    (C) Small wind systems interconnected to the electric power system 
will need arrangements to interconnect with the utility. Identify 
utility system interconnection requirements, power purchase 
arrangements, or licenses where required and the schedule for meeting 
those requirements and obtaining those agreements. This is required 
even if the system is installed on the customer side of the utility 
meter. For systems planning to utilize a local net metering program, 
describe the applicable local net metering program.
    (D) Describe all potential environmental impacts resulting from 
siting issues, construction and operation of the proposed project. 
Identify other site or design alternatives that were considered in your 
planning process. Identify all environmental compliance issues such as 
required permits (i.e., wetland fill, endangered species, etc.)
    (iii) Resource assessment. The applicant must provide adequate and 
appropriate evidence of the availability of the renewable resource 
required for the system to operate as designed. Indicate the local wind 
resource where the small wind turbine is to be installed. Acceptable 
sources of wind resource data include state wind maps and nearby 
weather station data. Incorporate information from state wind resource 
maps when possible. Indicate the source of the wind data and the 
conditions of the wind monitoring when collected at the site or 
assumptions made when applying nearby wind data to the site.
    (iv) Design and engineering. The applicant must provide 
authoritative evidence that the system will be designed and engineered 
so as to meet its intended purpose and need, will ensure public safety, 
mitigate any adverse environmental impacts, and will comply with 
applicable laws, regulations, agreements, permits, codes, and 
standards. Small wind systems must be engineered by either the wind 
turbine manufacturer or other qualified party. Systems must be offered 
as a complete, integrated system with matched components. The 
engineering must be comprehensive including turbine design and 
selection, tower design and selection, specification of guy wire 
anchors and tower foundation, inverter/controller design and selection, 
energy storage requirements as applicable, and selection of cabling, 
disconnects and interconnection equipment as well as the engineering 
data needed to match the wind system output to the application load, if 
applicable.
    (A) The application must include a concise but complete description 
of the small wind system including location of the project, proposed 
turbine specifications, tower height and type of tower, type of energy 
storage and location of storage if applicable, proposed inverter 
manufacturer and model, electric power system interconnection 
equipment, and application load and load interconnection equipment as 
applicable. Identify possible vendors and models of major system 
components. Provide the expected system energy production based on 
available wind resource data on monthly (when possible) and annual 
basis and how the energy produced by the system will be used.
    (B) The application must include a description of the siting 
criteria used in selecting the project site and address issues such as 
site access, foundations, backup equipment when applicable, access to 
the wind resource, proximity to the electrical gird or application 
load, and environmental issues with emphasis on land use, air quality, 
water quality, noise pollution, soil degradation, wildlife, habitat 
fragmentation, aesthetics, odor, avian impacts, and other construction 
and installation issues and whether special circumstances such as 
proximity to airports exist when applicable to this type of technology. 
Provide a 360-degree panoramic photograph of the proposed

[[Page 25250]]

site including indication of prevailing winds when possible.
    (C) Sites and application loads must be controlled by the 
agricultural producer or small business for the proposed project life 
or for the financing term of any associated federal loans or loan 
guarantees.
    (v) Project development schedule. The applicant must identify each 
significant task, its beginning and end, and its relationship to the 
time needed to initiate and carry the project through startup and 
shakedown. Provide a detailed description of the project timeline 
including system and site design, permits and agreements, equipment 
procurement, and system installation from excavation through startup 
and shakedown.
    (vi) Financial feasibility. The applicant must provide a study that 
describes costs and revenues of the proposed project to demonstrate the 
financial performance of the project. Provide a detailed analysis and 
description of project costs including design, permitting, equipment, 
site preparation, system installation, system startup and shakedown, 
warranties, insurance, financing, professional services, and operations 
and maintenance costs. Provide a detailed description of applicable 
investment incentives, productivity incentives, loans, and grants. 
Provide a detailed description of historic or expected energy use and 
expected energy offsets or sales on a monthly and annual basis.
    (vii) Equipment procurement. The applicant must demonstrate that 
equipment required by the system is available and can be procured and 
delivered within the proposed project development schedule. Small wind 
systems may be constructed of components manufactured in more than one 
location. Provide a description of any unique equipment procurement 
issues such as scheduling and timing of component manufacture and 
delivery, ordering, warranties, shipping, receiving, and on-site 
storage or inventory. Provide a detailed description of equipment 
certification. Procurement must be made in accordance with the 
requirements of 7 CFR part 3015.
    (viii) Equipment installation. The applicant must fully describe 
the management of and plan for site development and system 
installation, provide details regarding the scheduling of major 
installation equipment, including cranes and other devices, needed for 
project construction, and provide a description of the startup and 
shakedown specification and process and the conditions required for 
startup and shakedown for each equipment item individually and for the 
system as a whole.
    (ix) Operations and maintenance. The applicant must identify the 
operations and maintenance requirements of the system necessary for the 
system to operate as designed over the design life. The applicant must:
    (A) Ensure that systems must have at least a 5-year warranty for 
equipment and a commitment from the supplier to have spare parts 
available. Provide information regarding system warranty and 
availability of spare parts;
    (B) Describe the routine operations and maintenance requirements of 
the proposed system, including maintenance schedules for the mechanical 
and electrical and software systems;
    (C) Provide historical or engineering information that supports 
expected design life of the system and timing of major component 
replacement or rebuilds. Include in the discussion, costs and labor 
associated with operations and maintenance of system and plans for in 
or outsourcing; and
    (D) For owner maintained portions of the system, describe any 
unique knowledge, skills, or abilities needed for service operations or 
maintenance.
    (x) Decommissioning. When uninstalling or removing the project, 
describe the decommissioning process. Describe any issues, any 
environmental compliance requirements, and costs for removal and 
disposal of the system.
    (9) Wind, large. The technical requirements specified in paragraphs 
(d)(9)(i) through (x) apply to wind energy systems for which the rated 
power of the individual wind turbine(s) is larger than 100kW. Such 
systems are considered large wind systems. The major components of a 
large wind system are the wind turbine rotor, the gearbox, the 
generator, the tower, the power electronics, the local collection grid, 
and the interconnection equipment.
    (i) Qualifications of project team. The large wind project team 
should consist of a project manager, a meteorologist, an equipment 
supplier, a project engineer, a primary or general contractor, 
construction contractor, and a system operator and maintainer and in 
some cases the owner of the application or load served by the system. 
One individual or entity may serve more than one role.
    The applicant must provide authoritative evidence that project team 
service providers have the necessary professional credentials or 
relevant experience to perform the required services. The applicant 
must also provide authoritative evidence that vendors of proprietary 
components can provide necessary equipment and spare parts for the 
system to operate over its design life. The applicant must:
    (A) Discuss the proposed project delivery method. Such methods 
include a design, bid, build where a separate engineering firm may 
design the project and prepare a request for bids and the successful 
bidder constructs the project at the applicant's risk, and a design 
build method, often referred to as turn key, where the applicant 
establishes the specifications for the project and secures the services 
of a developer who will design and build the project at the developers 
risk;
    (B) Discuss the large wind turbine manufacturers and other 
equipment suppliers of major components being considered in terms of 
the length of time in business and the number of units installed at the 
capacity and scale being considered;
    (C) Discuss the project manager, equipment supplier, project 
engineer, and construction contractor qualifications for engineering, 
designing, and installing large wind systems including any relevant 
certifications by recognized organizations or bodies. Provide a list of 
the same or similar projects designed, installed, or supplied and 
currently operating and with references if available;
    (D) Discuss the qualifications of the meteorologist, including 
references; and
    (E) Describe system operator's qualifications and experience for 
servicing, operating, and maintaining the system for the proposed 
application. Provide a list of the same or similar projects designed, 
installed, or supplied and currently operating and with references if 
available.
    (ii) Agreements and permits. The applicant must identify all 
necessary agreements and permits required for the project and the 
status and schedule for securing those agreements and permits, 
including the items specified in paragraphs (d)(9)(ii)(A) through (E).
    (A) Large wind systems must be installed in accordance with local, 
State, and national building and electrical codes and regulations. 
Identify zoning, building and electrical code issues, and required 
permits and the schedule for meeting those requirements and securing 
those permits.
    (B) Identify land use agreements required for the project and the 
schedule for securing the agreements and the term of those agreements.
    (C) Identify available component warranties for the specific 
project location and size.

[[Page 25251]]

    (D) Large wind systems interconnected to the electric power system 
will need arrangements to interconnect with the utility. Identify 
utility system interconnection requirements, power purchase 
arrangements, or licenses where required and the schedule for meeting 
those requirements and obtaining those agreements.
    (E) Describe all potential environmental impacts resulting from 
siting issues, construction and operation of the proposed project. 
Identify other site or design alternatives that were considered in your 
planning process. Identify all environmental compliance issues such as 
required permits (i.e., wetland fill, endangered species, etc.)
    (iii) Resource assessment. The applicant must provide adequate and 
appropriate evidence of the availability of the renewable resource 
required for the system to operate as designed. Indicate the local wind 
resource where the wind turbine is to be installed. Wind resource maps 
may be used as an acceptable preliminary source of wind resource data. 
Projects greater than 500kW must obtain wind data from the proposed 
project site. For such projects, describe the proposed measurement 
setup for the collection of the wind resource data. For proposed 
projects with an established wind resource, provide a summary of the 
wind resource and the specifications of the measurement setup. Large 
wind systems larger than 500kW in size will typically require at least 
one year of on-site monitoring. If less than one year of data is used, 
the qualified meteorological consultant must provide a detailed 
analysis of correlation between the site data and a near-by long-term 
measurement site.
    (iv) Design and engineering. The applicant must provide 
authoritative evidence that the system will be designed and engineered 
so as to meet its intended purpose and need, will ensure public safety, 
mitigate any adverse environmental impacts, and will comply with 
applicable laws, regulations, agreements, permits, codes, and 
standards. Large wind systems must be engineered by a qualified entity. 
Systems must be engineered as a complete, integrated system with 
matched components. The engineering must be comprehensive including 
site selection, turbine selection, tower selection, tower foundation, 
design of the local collection grid, interconnection equipment 
selection, and system monitoring equipment. For stand alone, non-grid 
applications, engineering information must be provided that 
demonstrates appropriate matching of wind turbine and load.
    (A) The application must include a concise but complete description 
of the large wind project including location of the project, proposed 
turbine specifications, tower height and type of tower, the collection 
grid, interconnection equipment, and monitoring equipment. Identify 
possible vendors and models of major system components. Provide the 
expected system energy production based on available wind resource data 
on monthly and annual bases. For wind projects larger than 500kW in 
size, provide the expected system energy production over the life of 
the project including a discussion on inter-annual variation using a 
comparison of the on-site monitoring data with long-term meteorological 
data from a nearby monitored site.
    (B) The application must include a description of the siting 
criteria used in selecting the project site and address issues such as 
site access, foundations, backup equipment when applicable, proximity 
to the electrical grid or application load, and environmental issues 
with emphasis on land use, air quality, water quality, noise pollution, 
soil degradation, wildlife, habitat fragmentation, aesthetics, odor, 
noise, avian impacts, and other construction, and installation issues 
and whether special circumstances such as proximity to airports exist.
    (C) Sites must be controlled by the agricultural producer or small 
business for the proposed project life or for the financing term of any 
associated federal loans or loan guarantees.
    (v) Project development schedule. The applicant must identify each 
significant task, its beginning and end, and its relationship to the 
time needed to initiate and carry the project through startup and 
shakedown. Provide a detailed description of the project timeline 
including resource assessment, system and site design, permits and 
agreements, equipment procurement, and system installation from 
excavation through startup and shakedown.
    (vi) Financial feasibility. The applicant must provide a study that 
describes costs and revenues of the proposed renewable energy system(s) 
to demonstrate the financial performance of the renewable energy 
system(s). Provide a detailed analysis and description of project costs 
including project management, resource assessment, project design, 
project permitting, land agreements, equipment, site preparation, 
system installation, startup and shakedown, warranties, insurance, 
financing, professional services, and operations and maintenance costs. 
Provide a detailed description of applicable investment incentives, 
productivity incentives, loans, and grants. Provide a detailed analysis 
and description of annual project revenues including electricity sales, 
production tax credits, revenues from green tags, and any other 
production incentive programs throughout the life of the project. 
Provide a description of planned contingency fees or reserve funds to 
be used for unexpected large component replacement or repairs and for 
low productivity periods.
    (vii) Equipment procurement. The applicant must demonstrate that 
equipment required by the system is available and can be procured and 
delivered within the proposed project development schedule. Large wind 
turbines may be constructed of components manufactured in more than one 
location. Provide a description of any unique equipment procurement 
issues such as scheduling and timing of component manufacture and 
delivery, ordering, warranties, shipping, receiving, and on-site 
storage or inventory. Provide a detailed description of equipment 
certification. Procurement must be made in accordance with the 
requirements of 7 CFR part 3015.
    (viii) Equipment installation. The applicant must fully describe 
the management of and plan for site development and system 
installation, provide details regarding the scheduling of major 
installation equipment, including cranes or other devices, needed for 
project construction, and provide a description of the startup and 
shakedown specification and process and the conditions required for 
startup and shakedown for each equipment item individually and for the 
system as a whole.
    (ix) Operations and maintenance. The applicant must identify the 
operations and maintenance requirements of the system necessary for the 
system to operate as designed over the design life. The applicant must:
    (A) Ensure that systems must have at least a 3-year warranty for 
equipment. Provide information regarding turbine warranties and 
availability of spare parts;
    (B) Describe the routine operations and maintenance requirements of 
the proposed project, including maintenance schedules for the 
mechanical and electrical systems and system monitoring and control 
requirements;
    (C) Provide information that supports expected design life of the 
system and

[[Page 25252]]

timing of major component replacement or rebuilds;
    (D) Provide and discuss the risk management plan for handling 
large, unanticipated failures of major components such as the turbine 
gearbox or rotor. Include in the discussion, costs and labor associated 
with operations and maintenance of system and plans for insourcing or 
outsourcing;
    (E) Describe opportunities for technology transfer for long term 
project operations and maintenance by a local entity or owner/operator; 
and
    (F) For owner maintained portions of the system, describe any 
unique knowledge, skills, or abilities needed for service operations or 
maintenance.
    (x) Decommissioning. When uninstalling or removing the project, 
describe the decommissioning process. Describe any issues, any 
environmental compliance requirements, and costs for removal and 
disposal of the system.
    (10) Energy efficiency improvements. The technical requirements 
specified in paragraphs (d)(10)(i) through (ix) apply to projects that 
involve improvements to a facility, building or process resulting in 
reduced energy consumption or reduced amount of energy required per 
unit of production are regarded as energy efficiency projects. Projects 
in excess of $50,000 require a full energy audit. The system 
engineering for such projects must be performed by a qualified entity 
certified Professional Engineer.
    (i) Qualifications of project team. The energy efficiency project 
team is expected to consist of an energy auditor, a project manager, an 
equipment supplier of major components, a project engineer, and a 
construction contractor or system installer. One individual or entity 
may serve more than one role.
    The applicant must provide authoritative evidence that project team 
service providers have the necessary professional credentials or 
relevant experience to perform the required services. The applicant 
must also provide authoritative evidence that vendors of proprietary 
components can provide necessary equipment and spare parts for the 
system to operate over its design life. The applicant must:
    (A) Discuss the qualifications of the various project team members 
including any relevant certifications by recognized organizations or 
bodies;
    (B) Describe qualifications or experience of the team as related to 
installation, service, operation and maintenance of the project;
    (C) Provide a list of the same or similarly engineered projects 
designed, installed, or supplied by the team or by team members and 
currently operating. Provide references if available; and
    (D) Discuss the manufacturers of major energy efficiency equipment 
being considered including length of time in business.
    (ii) Agreements and permits. The applicant must identify all 
necessary agreements and permits required for the energy efficiency 
improvement(s) and the status and schedule for securing those 
agreements and permits, including the items specified in paragraphs 
(d)(10)(ii)(A) through (C).
    (A) Energy efficiency improvements must be installed in accordance 
with local, State, and national building and electrical codes and 
regulations. Identify building code, electrical code, and zoning issues 
and required permits, and the schedule for meeting those requirements 
and securing those permits.
    (B) Identify available component warranties for the specific 
project location and size.
    (C) Describe all potential environmental impacts resulting from 
siting issues, construction and operation of the proposed project. 
Identify other site or design alternatives that were considered in your 
planning process. Identify all environmental compliance issues such as 
required permits (i.e., wetland fill, endangered species, etc.)
    (iii) Energy assessment. The applicant must provide adequate and 
appropriate evidence of energy savings expected when the system is 
operated as designed.
    (A) The application must include information on baseline energy 
usage (preferably including energy bills for at least one year), 
expected energy savings based on manufacturers specifications or other 
estimates, estimated dollars saved per year, and payback period in 
years (total investment cost equal to cumulative total dollars of 
energy savings). Calculation of energy savings should follow accepted 
methodology and practices. System interactions should be considered and 
discussed.
    (B) For energy efficiency improvement projects in excess of 
$50,000, an energy audit is required. An energy audit is a written 
report by an independent, qualified entity that documents current 
energy usage, recommended potential improvements and their costs, 
energy savings from these improvements, dollars saved per year, and 
simple payback period in years (total costs divided by annual dollars 
of energy savings). The methodology of the energy audit must meet 
professional and industry standards. The energy audit must cover the 
following:
    (1) Situation report. Provide a narrative description of the 
facility or process, its energy system(s) and usage, and activity 
profile. Also include price per unit of energy (electricity, natural 
gas, propane, fuel oil, renewable energy, etc.) paid by the customer on 
the date of the audit. Any energy conversion should be based on use 
rather than source.
    (2) Potential improvements. List specific information on all 
potential energy-saving opportunities and their costs.
    (3) Technical analysis. Give consideration to the interactions 
among the potential improvements and other energy systems:
    (i) Estimate the annual energy and energy costs savings expected 
from each improvement identified in the potential project.
    (ii) Calculate all direct and attendant indirect costs of each 
improvement.
    (iii) Rank potential improvements measures by cost-effectiveness.
    (4) Potential improvement description. Provide a narrative summary 
of the potential improvement and its ability to provide needed 
benefits, including a discussion of non-energy benefits such as project 
reliability and durability.
    (i) Provide preliminary specifications for critical components.
    (ii) Provide preliminary drawings of project layout, including any 
related structural changes.
    (iii) Document baseline data compared to projected consumption, 
together with any explanatory notes. When appropriate, show before-and-
after data in terms of consumption per unit of production, time or 
area. Include at least 1 year's bills for those energy sources/fuel 
types affected by this project. Also submit utility rate schedules, if 
appropriate.
    (iv) Identify significant changes in future related operations and 
maintenance costs.
    (v) Describe explicitly how outcomes will be measured.
    (iv) Design and engineering. The applicant must provide 
authoritative evidence that the energy efficiency improvement(s) will 
be designed and engineered so as to meet its intended purpose and need, 
will ensure public safety, mitigate any adverse environmental impacts, 
and will comply with applicable laws, regulations, agreements, permits, 
codes, and standards.
    (A) Energy efficiency improvement projects in excess of $50,000 
must be engineered by a qualified entity. Systems must be engineered as 
a

[[Page 25253]]

complete, integrated system with matched components.
    (B) For all energy efficiency improvement projects, identify and 
itemize major energy efficiency improvements including associated 
project costs. Specifically delineate which costs of the project are 
directly associated with energy efficiency improvements. Describe the 
components, materials or systems to be installed and how they improve 
the energy efficiency of the process or facility being modified. 
Discuss passive improvements that reduce energy loads, such as 
improving the thermal efficiency of a storage facility, and active 
improvements that directly reduce energy consumption, such as replacing 
existing energy consuming equipment with high efficiency equipment, as 
separate topics. Discuss any anticipated synergy between active and 
passive improvements or other energy systems. Include in the discussion 
any change in on-site effluents, pollutants, or other by-products.
    (C) Identify possible suppliers and model of major pieces of 
equipment.
    (v) Project development schedule. The applicant must identify each 
significant task, its beginning and end, and its relationship to the 
time needed to initiate and carry the project through startup and 
shakedown. Provide a detailed description of the project timeline 
including energy audit (if applicable), system and site design, permits 
and agreements, equipment procurement, and system installation from 
site preparation through startup and shakedown.
    (vi) Equipment procurement. The applicant must demonstrate that 
equipment required for the energy efficiency improvement(s) is 
available and can be procured and delivered within the proposed project 
development schedule. Energy efficiency improvements may be constructed 
of components manufactured in more than one location. Provide a 
description of any unique equipment procurement issues such as 
scheduling and timing of component manufacture and delivery, ordering, 
warranties, shipping, receiving, and on-site storage or inventory. 
Provide a detailed description of equipment certification. Procurement 
must be made in accordance with the requirements of 7 CFR part 3015.
    (vii) Equipment installation. The applicant must fully describe the 
management of and plan for installation of the energy efficiency 
improvement(s), identify specific issues associated with installation, 
provide details regarding the scheduling of major installation 
equipment needed for project discussion, and provide a description of 
the startup and shakedown specification and process and the conditions 
required for startup and shakedown for each equipment item individually 
and for the system as a whole. Include in this discussion any unique 
concerns, such as the effects of energy efficiency improvements on 
system power quality.
    (viii) Operations and maintenance. The applicant must identify the 
operations and maintenance requirements of the energy efficiency 
improvement(s) necessary for the energy efficiency improvement(s) to 
operate as designed over the design life. The applicant must:
    (A) Provide information regarding component warranties and the 
availability of spare parts;
    (B) Describe the routine operations and maintenance requirements of 
the proposed project, including maintenance schedules for the 
mechanical and electrical systems and system monitoring and control 
requirements;
    (C) Provide information that supports expected design life of the 
system and timing of major component replacement or rebuilds;
    (D) Provide and discuss the risk management plan for handling 
large, unanticipated failures of major components. Include in the 
discussion, costs and labor associated with operations and maintenance 
of system and plans for in or outsourcing; and
    (E) For owner maintained portions of the system, describe any 
unique knowledge, skills, or abilities needed for service operations or 
maintenance.
    (ix) Decommissioning. When uninstalling or removing the project, 
describe the decommissioning process. Describe any issues, any 
environmental compliance requirements, and costs for removal and 
disposal of the system.

Evaluation of Grant Applications

    (a) General review. The Agency will evaluate each application and 
make a determination whether the applicant is eligible, the proposed 
grant is for an eligible project, and the proposed grant complies with 
all applicable statutes and regulations.
    (b) Ineligible or incomplete applications. If the applicant is 
ineligible or the application is incomplete, the Agency will inform the 
applicant in writing of the decision, reasons therefore, and any appeal 
rights, and no further evaluation of the application will occur.
    (c) Technical feasibility determination. The Agency's determination 
of a project's technical feasibility will be based on the information 
provided by the applicant and on other sources of information, such as 
recognized industry experts in the applicable technology field, as 
necessary, to determine technical feasibility of the proposed project.
    (d) Evaluation criteria. Agency personnel will score and fund each 
application based on the evaluation criteria specified in paragraph 
(d)(1) for renewable energy systems and in paragraph (d)(2) for energy 
efficiency improvements. These criteria must be individually addressed 
in narrative form on a separate sheet of paper.
    (1) Criteria for applications for renewable energy systems. 
Criteria for applications for renewable energy systems are:
    (i) Quantity of energy produced. Points may only be awarded for 
either energy replacement or energy generation, but not for both;
    (A) Energy replacement. If the proposed renewable energy system is 
intended primarily for self use by the farm, ranch, or rural small 
business and will provide energy replacement of greater than 75 
percent, 20 points will be awarded; greater than 50 percent, but equal 
to or less than 75 percent, 15 points will be awarded; or greater than 
25 percent, but equal to or less than 50 percent, 10 points will be 
awarded. The energy replacement should be determined by dividing the 
estimated quantity of energy to be generated by at least the past 12 
months' energy profile of the agricultural producer or small business 
or anticipated energy use. The estimated quantity of energy may be 
described in Btu's, kilowatts, or similar energy equivalents. Energy 
profiles can be obtained from the utility company;
    (B) Energy generation. If the proposed renewable energy system is 
intended primarily for production of energy for sale, 20 points will be 
awarded;
    (ii) Environmental benefits. If the purpose of the proposed 
renewable energy system is to upgrade an existing facility or construct 
a new facility required to meet applicable health or sanitary 
standards, 10 points will be awarded. Documentation must be obtained by 
the applicant from the appropriate regulatory agency with jurisdiction 
to establish the standard, to verify that a bona fide standard exists, 
what that standard is, and that the proposed project is needed and 
required to meet the standard;
    (iii) Commercial availability. If the renewable energy system is 
currently

[[Page 25254]]

commercially available and replicable, an additional 10 points will be 
awarded;
    (iv) Cost effectiveness. If the proposed renewable energy system 
will return the cost of the investment in 5 years or less, 25 points 
will be awarded; up to 10 years, 20 points will be awarded; up to 15 
years, 15 points will be awarded; or up to 20 years, 10 points will be 
awarded. The estimated return on investment is calculated by dividing 
the total project cost by the estimated projected net annual income 
and/or energy savings of the renewable energy system;
    (v) Matching funds. If the agricultural producer or small business 
has provided eligible matching funds of over 90 percent, 15 points will 
be awarded; 85-90 percent, 10 points will be awarded; or at least 80 
and up to but not including 85 percent, 5 points will be awarded;
    (vi) Management. If the renewable energy system will be monitored 
and managed by a qualified third-party operator, such as pursuant to a 
service contract, maintenance contract, or remote telemetry, an 
additional 10 points will be awarded; and
    (vii) Small agricultural producer. If the applicant (for grants or 
direct loans) or borrower (for guaranteed loans) is an agricultural 
producer producing agricultural products with a gross market value of 
less than $1 million in the preceding year, an additional 10 points 
will be awarded.
    (2) Criteria for applications for energy efficiency improvements. 
Criteria for applications for energy efficiency improvements are:
    (i) Energy savings. If the estimated energy expected to be saved by 
the installation of the energy efficiency improvements will be 35 
percent or greater, 20 points will be awarded; 30 and up to but not 
including 35 percent, 15 points will be awarded; 25 and up to but not 
including 30 percent, 10 points will be awarded; or 20 and up to but 
not including 25 percent, 5 points will be awarded. Energy savings will 
be determined by the projections in an energy assessment or audit;
    (ii) Cost effectiveness. If the proposed energy efficiency 
improvements will return the cost of the investment in 2 years or less, 
25 points will be awarded; greater than 2 and up to and including 5 
years, 20 points will be awarded; greater than 5 and up to and 
including 9 years, 15 points will be awarded; or greater than 9 and up 
to and including 11 years, 10 points will be awarded. The estimated 
return on investment is calculated by dividing the total project cost 
by the project net annual energy savings of the energy efficiency 
improvements;
    (iii) Matching funds. If the agricultural producer or small 
business has provided eligible matching funds of over 90 percent, 15 
points will be awarded; 85-90 percent, 10 points will be awarded; or 80 
and up to but not including 85 percent, 5 points will be awarded; and
    (iv) Small agricultural producer. If the applicant is an 
agricultural producer producing agricultural products with a gross 
market value of less than $1 million in the preceding year, an 
additional 10 points will be awarded.

Insurance Requirements

    Insurance is required to protect the interest of the recipient of 
funds under this subpart and the Agency. The coverage must be 
maintained for the life of the grant unless this requirement is waived 
or modified by the Agency in writing.
    (a) Worker compensation insurance is required in accordance with 
State law.
    (b) National flood insurance is required in accordance with 7 CFR 
part 1806, subpart B.
    (c) Business interruption insurance will be required.

Laws That Contain Other Compliance Requirements

    The applicant must comply with all applicable laws, regulations, 
Executive Orders, and other generally applicable requirements, 
including those contained in 7 CFR part 3015, ``Uniform Federal 
Assistance Regulations,'' and such other statutory provisions as are 
specifically contained herein.
    (a) Equal employment opportunity. For all construction contracts 
and grants in excess of $10,000, the contractor must comply with 
Executive Order 11246 as amended by Executive Order 11375, and as 
supplemented by applicable Department of Labor regulations (41 CFR part 
60). The applicant and borrower are responsible for ensuring that the 
contractor complies with these requirements.
    (b) Americans With Disabilities Act (ADA). Loans and grants that 
involve the construction of or addition to facilities that accommodate 
the public and commercial facilities, as defined by the ADA, must 
comply with the ADA. The applicant and borrower are responsible for 
compliance.
    (c) Civil rights compliance. Recipients of direct loans and grants 
must comply with the Americans with Disabilities Act of 1990, Title VI 
of the Civil Rights Act of 1964, and Section 504 of the Rehabilitation 
Act of 1973. This may include collection and maintenance of data on the 
race, sex, and national origin of the recipient's membership/ownership 
and employees. These data should be available to conduct compliance 
reviews in accordance with 7 CFR part 1901, subpart E, section 
1901.204. Initial reviews will be conducted after Form RD 400-4, 
``Assurance Agreement,'' is signed and all subsequent reviews every 3 
years thereafter. The Agency should be contacted to provide further 
guidance on collection of information and compliance with Civil Rights 
laws.
    (d) National Environmental Policy Act. Each applicant must prepare 
Form RD 1940-20, ``Request for Environmental Information.'' The State 
Rural Development Office will review the information provided and 
advise the applicant of the specific and necessary environmental review 
and analysis to be completed in completing the required NEPA review and 
analysis pursuant to 7 CFR part 1940, subpart G. A site visit by the 
Agency will be scheduled, if necessary, to determine the scope of the 
review. The applicant will be notified of all specific compliance 
requirements, such as the publication of public notices. All required 
environmental analysis and compliance will be completed prior to grant 
obligation. The taking of any actions or incurring any obligations 
during the time of application or application review and processing 
that would either limit the range of alternatives to be considered or 
that would have an adverse effect on the environment, such as the 
initiation of construction, will result in project ineligibility.
    (e) Executive Order 12898. When grant and loans (direct or 
guaranteed) are proposed, Rural Development employees are to conduct a 
Civil Rights Impact Analysis in regard to environmental justice 
utilizing Form RD 2006-38. This must be done prior to loan approval, 
obligation of funds, including issuance of a Letter of Conditions, 
whichever occurs first.

Construction Planning and Performing Development

    The requirements of 7 CFR part 1924, subpart A, apply for 
construction of renewable energy systems and energy efficiency 
improvement projects as applicable.
    Recipients of grants and direct loans under this subpart are not 
authorized to construct the facility, project, or improvement in total, 
or in part, or utilize their own personnel and/or equipment.

[[Page 25255]]

Grantee Requirements
    (a) Letter of Conditions, which is prepared by the Agency, 
establishes conditions that must be understood and agreed to by the 
applicant before any obligation of funds can occur. The applicant must 
sign Letter of Intent To Meet Conditions and Form 1940-1, ``Request for 
Obligation of Funds,'' if they accept the conditions of the grant. 
These forms will be enclosed with the Letter of Conditions. The grant 
will be obligated when the Agency receives an executed Letter of Intent 
and Request for Obligation of Funds from the applicant agreeing to all 
provisions in the Letter of Conditions.
    (b) The grantee must sign a Grant Agreement (which is published at 
the end of the NOFA) and abide by all requirements contained in the 
Grant Agreement or any other Federal statutes or regulations governing 
this program. Failure to follow the requirements may result in 
termination of the grant and adoption of other remedies provided for in 
the Grant Agreement.
Servicing Grants
    Grants will be serviced in accordance with 7 CFR part 1951, subpart 
E and the Grant Agreement.

    Dated: April 27, 2004.
Gilbert G. Gonzalez, Jr.,
Acting Under Secretary.

[[Page 25256]]

[GRAPHIC] [TIFF OMITTED] TN05MY04.013


[[Page 25257]]


[GRAPHIC] [TIFF OMITTED] TN05MY04.014


General Grantee Certifications

    This GRANT AGREEMENT is a contract for receipt of grant funds 
under the Renewable Energy/Energy Efficiency program (Title IX, 
Section 9006 of Public Law 107-171) between the Grantee and the 
United States of America acting through Rural Development, 
Department of Agriculture (Grantor). All references herein to 
``Project'' refer to installation of a renewable energy system or 
energy efficiency improvement at the location identified in Block 9. 
Should actual project costs be lower than projected in the agreement 
(see Block 5), the final amount of grant will be adjusted to remain 
at the percentage (identified in Block 7) of the final Eligible 
Project Cost.

(1) Assurance Agreement

    Grantee assures the Grantor that Grantee is in compliance with 
and will comply in the course of the Agreement with all applicable 
laws, regulations, Executive Orders, and other generally applicable 
requirements, including those contained in 7 CFR part 3015, 
``Uniform Federal Assistance Regulations,'' which are incorporated 
into this agreement by reference, and such other statutory 
provisions as are specifically contained herein.
    Grantee and Grantor agree to all of the terms and provisions of 
any policy or regulations promulgated under Title IX, Section 9006 
of the Farm Security and Rural Investment Act of 2002 as amended. 
Any application submitted by the Grantee for this grant, including 
any attachments or amendments, are incorporated and included as part 
of this Agreement. Any changes to

[[Page 25258]]

these documents or this Agreement must be approved in writing by the 
Grantor.
    The Grantor may terminate the grant in whole, or in part, at any 
time before the date of completion, whenever it is determined that 
the Grantee has failed to comply with the conditions of this 
Agreement.

(2) Use of Grant Funds

    Grantee will use grant funds and leveraged funds only for the 
purposes and activities specified in the application approved by the 
Grantor including the approved budget. Budget and approved use of 
funds are as further described in the Grantor Letter of Conditions 
and amendments or supplements thereto. Any uses not provided for in 
the approved budget must be approved in writing by the Grantor. The 
proposed renewable energy system or energy efficiency improvements 
shall be constructed/installed in accordance with any energy audit 
recommendations or engineering or other technical reports provided 
by the Grantee and approved by the Grantor.

(3) Civil Rights Compliance

    Grantee will comply with Executive Order 12898, the Americans 
with Disabilities Act of 1990, Title VI of the Civil Rights Act of 
1964, and Section 504 of the Rehabilitation Act of 1973. This shall 
include collection and maintenance of data on the race, sex, and 
national origin of Grantee's membership/ ownership and employees. 
This data must be available to the Grantor in its conduct of Civil 
Rights Compliance Reviews, which will be conducted prior to grant 
closing and 3 years later, unless the final disbursement of grant 
funds has occurred prior to that date.

(4) Financial Management Systems

    A. Grantee will provide a Financial Management System in 
accordance with 7 CFR part 3015, including but not limited to:
    (1) Records that identify adequately the source and application 
of funds for grant-supported activities. Those records shall contain 
information pertaining to grant awards and authorizations, 
obligations, unobligated balances, assets, liabilities, outlays, and 
income.
    (2) Effective control over and accountability for all funds, 
property, and other assets. Grantees shall adequately safeguard all 
such assets and ensure that they are used solely for authorized 
purposes.
    (3) Accounting records prepared in accordance with generally 
accepted accounting principles (GAAP) and supported by source 
documentation.
    (4) Grantee tracking of fund usage and records that show 
matching funds and grant funds are used in equal proportions. The 
grantee will provide verifiable documentation regarding matching 
funds usage, i.e., bank statements or copies of funding obligations 
from the matching source.
    B. Grantee will retain financial records, supporting documents, 
statistical records, and all other records pertinent to the grant 
for a period of at least 3 years after final grant disbursement, 
except that the records shall be retained beyond the 3-year period 
if audit findings have not been resolved. The Grantor and the 
Comptroller General of the United States, or any of their duly 
authorized representatives, shall have access to any books, 
documents, papers, and records of the Grantee's which are pertinent 
to the grant for the purpose of making audits, examinations, 
excerpts, and transcripts.

(5) Procurement and Construction

    A. Grantee will comply with the applicable procurement 
requirements of 7 CFR part 3015 regarding standards of conduct, open 
and free competition, access to contractor records, and equal 
employment opportunity requirements.
    B. Grantee will, for construction contracts in excess of 
$50,000, provide performance and payment bonds for 100 percent of 
the contract price.

(6) Acquired Property

    A. Grantee will in accordance with 7 CFR part 3015, hold title 
to all real property identified as part of the project costs, 
including improvements to land, structures or things attached to 
them. Movable machinery and other kinds of equipment are not real 
property (see Item 2 below). In addition:
    (1) Approval may be requested from Grantor to transfer title to 
an eligible third party for continued use for originally authorized 
purposes. If approval is given, the terms of the transfer shall 
provide that the transferee must assume all the rights and 
obligations of the transferor, including the terms of this Grant 
Agreement.
    (2) If the real property is no longer to be used as provided 
above, disposition instructions of the Grantor shall be requested 
and followed. Those instructions will provide for one of the 
following alternatives:
    a. The Grantee may be directed to sell the property, and the 
Grantor shall have a right to an amount computed by multiplying the 
Federal (Grantor) share of the property times the proceeds from sale 
(after deducting actual and reasonable selling and fix-up expenses, 
if any, from the sale proceeds). Proper sales procedures shall be 
followed which provide for competition to the extent practicable and 
result in the highest possible return.
    b. The Grantee shall have the opportunity of retaining title. If 
title is retained, Grantor shall have the right to an amount 
computed by multiplying the market value of the property by the 
Federal share of the property.
    c. The Grantee may be directed to transfer title to the property 
to the Federal Government provided that, in such cases, the Grantee 
shall be entitled to compensation computed by applying the Grantee's 
percentage of participation in the cost of the program or project to 
the current fair market value of the property.
    Disposition requirements for real property shall expire 20 years 
from the date of final grant disbursement. This Grant Agreement 
covers the real property described in Block 10.
    Grantee will abide by the requirements of 7 CFR part 3015 
pertaining to equipment, which is acquired wholly or in part with 
grant funds.
    B. Disposition requirements for equipment will expire at the end 
of each item's useful life (which is based on a straight-line, non-
accelerated method). This Grant Agreement covers the equipment 
described in Block 11. Grantee agrees not to encumber, transfer, or 
dispose of the property or any part thereof, acquired wholly or in 
part with Grantor funds, without the written consent of the Grantor.
    C. If required by Grantor, record liens or other appropriate 
notices of record to indicate that personal or real property has 
been acquired or improved with Federal grant funds, and that use and 
disposition conditions apply to the property as provided by 7 CFR 
part 3015.

(7) Reporting

    A. Grantee will after Grant Approval through Project 
Construction:
    (1) Provide periodic reports as required by the Grantor. A 
financial status report and a project performance report will be 
required on a quarterly basis (Due 30 working days after end of the 
quarter. For the purposes of this grant, quarters end on March 31, 
June 30, September 30, and December 31). The financial status report 
must show how grant funds and leveraged funds have been used to date 
and project the funds needed and their purposes for the next 
quarter. A final report may serve as the last quarterly report. 
Grantees shall constantly monitor performance to ensure that time 
schedules are being met and projected goals by time periods are 
being accomplished. The project performance reports shall include 
the following:
    a. A comparison of actual accomplishments to the objectives for 
that period.
    b. Reasons why established objectives were not met, if 
applicable.
    c. Reasons for any problems, delays, or adverse conditions which 
will affect attainment of overall program objectives, prevent 
meeting time schedules or objectives, or preclude the attainment of 
particular objectives during established time periods. This 
disclosure shall be accomplished by a statement of the action taken 
or planned to resolve the situation.
    d. Objectives and timetables established for the next reporting 
period.
    (2) Final project development report which includes a detailed 
project funding and expense summary; summary of facility 
installation/construction process including recommendations for 
development of similar projects by future applicants to the program.
    (3) For the year(s) in which in Grant funds are received, 
Grantee will provide an annual financial statement to Grantor.
    B. Grantee will after Project Construction.
    1. Allow Grantor access to the project and its performance 
information during its useful life.
    2. Provide periodic reports as required by Grantor and permit 
periodic inspection of the project by a representative of the 
Grantor. Grantee reports will include but not be limited to the 
following:
    a. Purchase of Renewable Energy System Project Report. 
Commencing the first full calendar year following the year in which 
project construction was completed and continuing for 3 full years a 
report detailing the following will be provided:
    i. Quantity of Energy Produced. Grantee to report the actual 
amount of energy produced

[[Page 25259]]

in BTUs, kilowatts, or similar energy equivalents.
    ii. Environmental Benefits. If applicable, Grantee to provide 
documentation that identified health and/or sanitation problem has 
been solved.
    iii. Return on Investment. Grantee to provide the annual income 
and/or energy savings of the renewable energy system.
    iv. Summary of the cost of operating and maintaining the 
facility.
    v. Description of any maintenance or operational problems 
associated with the facility.
    vi. Recommendations for development of future similar projects.
    b. Energy Efficiency Improvement Project Report. Commencing the 
first full calendar year following the year in which project 
construction was completed and continuing for 2 full years. Grantee 
will report the actual amount of energy saved due to the energy 
efficiency improvements.

(8) Grant Disbursement

    Grantee will disburse grant funds as scheduled. Unless required 
by funding partners to be provided on a pro rata basis with other 
funding sources, grant funds will be disbursed after all other 
funding sources have been expended.
    A. Requests for reimbursement may be submitted monthly or more 
frequently if authorized to do so by the Grantor. Ordinarily, 
payment will be made within 30 days after receipt of a proper 
request for reimbursement.
    B. Grantee shall not request reimbursement for the Federal share 
of amounts withheld from contractors to ensure satisfactory 
completion of work until after it makes those payments.
    C. Payment shall be made by electronic funds transfer.
    D. Standard Form 271, ``Outlay Report and Request for 
Reimbursement for Construction Programs,'' or other format 
prescribed by Grantor shall be used to request Grant reimbursements.
    E. For renewable energy projects, grant funds will be disbursed 
in accordance with the above through 90 percent of grant 
disbursement. The final 10 percent of grant funds will be held by 
the Grantor until construction of the project is completed, 
operational, and has met or exceeded the test run requirements as 
set out in the grant award requirements.

(9) Post-Disbursement Requirements

    Grantee will own, operate, and provide for continued maintenance 
of the Project.
    IN WITNESS WHEREOF, Grantee has this day authorized and caused 
this Agreement to be signed in its name and its corporate seal to be 
hereunto affixed and attested by its duly authorized officers 
thereunto, and the Grantor has caused this Agreement to be duly 
executed in its behalf by:

-----------------------------------------------------------------------
Name:
Title:

-----------------------------------------------------------------------
Date

UNITED STATES OF AMERICA RURAL DEVELOPMENT

By:--------------------------------------------------------------------
Name:
Title:

-----------------------------------------------------------------------
Date

[FR Doc. 04-10052 Filed 5-4-04; 8:45 am]
BILLING CODE 3410-XY-P