[Federal Register Volume 74, Number 99 (Tuesday, May 26, 2009)]
[Notices]
[Pages 24769-24781]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-12178]


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 Notices
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 This section of the FEDERAL REGISTER contains documents other than rules 
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  Federal Register / Vol. 74, No. 99 / Tuesday, May 26, 2009 / 
Notices  

[[Page 24769]]



DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service


Notice of Solicitation of Applications (NOSA) for Inviting 
Applications for Renewable Energy Systems and Energy Efficiency 
Improvements Grants and Guaranteed Loans and Renewable Energy 
Feasibility Studies Grants Under the Rural Energy for America Program

AGENCY: Rural Business-Cooperative Service, USDA.

ACTION: Notice.

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

SUMMARY: This notice announces that Rural Business-Cooperative Service 
is accepting applications for fiscal year (FY) 2009 to purchase 
renewable energy systems and make energy efficiency improvements and to 
conduct feasibility studies for renewable energy systems for 
agriculture producers and rural small businesses in eligible rural 
areas. Funding will be available in the form of grants and loan 
guarantees. In addition to grants and loan guarantees, applicants may 
apply for combination loan guarantee and grant funding (combination 
package). Lastly, the Agency intends to publish a proposed rule that 
will amend the Rural Energy for America portion of the Rural 
Development Grants regulation, published October 15, 2008 [73 FR 
61198], at 7 CFR part 5002, for feasibility study projects in calendar 
year 2009.

DATES: Complete applications under this Notice must be received by the 
appropriate USDA Rural Development State Office no later than 4:30 
local time July 31, 2009. Neither complete nor incomplete applications 
received after this date and time will be considered, regardless of the 
postmark on the application.
    The comment period for information collection under the Paperwork 
Reduction Act of 1995 continues through July 27, 2009. Comments on the 
paper work burden must be received by this date to be assured of 
consideration.

ADDRESSES: Application materials may be obtained by contacting one of 
Rural Development's Rural Energy Coordinators or by downloading through 
http://www.grants.gov.
    Submit electronic applications at http://www.grants.gov, following 
the instructions found on this Web site. To use Grants.gov, all 
applicants (unless the applicant is an individual) must have a Dun and 
Bradstreet Data Universal Numbering System (DUNS) number, which can be 
obtained at no cost via a toll-free request line at 1-866-705-5711 or 
online at http://fedgov.dnb.com/webform. Submit completed paper 
applications to the Rural Development State Office in the State in 
which the applicant's proposed project is located.
Rural Development Rural Energy Coordinators

    Note:  Telephone numbers listed are not toll-free.

Alabama
Quinton Harris, USDA Rural Development, Sterling Centre, Suite 601, 
4121 Carmichael Road, Montgomery, AL 36106-3683, (334) 279-3623. 
[email protected].
Alaska
Dean Stewart, USDA Rural Development, 800 West Evergreen, Suite 201, 
Palmer, AK 99645-6539, (907) 761-7722. [email protected].

American Samoa (See Hawaii)

Arizona

Alan Watt, USDA Rural Development, 230 North First Avenue, Suite 
206, Phoenix, AZ 85003-1706, (602) 280-8769. [email protected].
Arkansas
Tim Smith, USDA Rural Development, 700 West Capitol Avenue, Room 
3416, Little Rock, AR 72201-3225, (501) 301-3280. 
[email protected].
California
Philip Brown, USDA Rural Development, 430 G Street, 4169, 
Davis, CA 95616, (530) 792-5811. [email protected].
Colorado
April Dahlager, USDA Rural Development, 655 Parfet Street, Room E-
100, Lakewood, CO 80215, (720) 544-2909. [email protected].

Commonwealth of the Northern Marianas Islands--CNMI (See Hawaii)

Connecticut (see Massachusetts)

Delaware/Maryland

Bruce Weaver, USDA Rural Development, 1221 College Park Drive, Suite 
200, Dover, DE 19904, (302) 857-3626. [email protected].

Federated States of Micronesia (See Hawaii)

Florida/Virgin Islands

Joe Mueller, USDA Rural Development, 4440 NW. 25th Place, 
Gainesville, FL 32606, (352) 338-3482. [email protected].
Georgia
J. Craig Scroggs, USDA Rural Development, 111 E. Spring St., Suite 
B, Monroe, GA 30655, Phone 770-267-1413 ext. 113. 
[email protected].

Guam (See Hawaii)

Hawaii/Guam/Republic of Palau/Federated States of Micronesia/Republic 
of the Marshall Islands/American Samoa/Commonwealth of the Northern 
Marianas Islands--CNMI

Tim O'Connell, USDA Rural Development, Federal Building, Room 311, 
154 Waianuenue Avenue, Hilo, HI 96720, (808) 933-8313. 
[email protected].
Idaho
Brian Buch, USDA Rural Development, 9173 W. Barnes Drive, Suite A1, 
Boise, ID 83709, (208) 378-5623. [email protected].
Illinois
Molly Hammond, USDA Rural Development, 2118 West Park Court, Suite 
A, Champaign, IL 61821, (217) 403-6210. [email protected].
Indiana
Jerry Hay, USDA Rural Development, 2411 N. 1250 W., Deputy, IN 
47230, (812) 873-1100. [email protected].
Iowa
Teresa Bomhoff, USDA Rural Development, 873 Federal Building, 210 
Walnut Street, Des Moines, IA 50309, (515) 284-4447. 
[email protected].
Kansas
David Kramer, USDA Rural Development, 1303 SW First American Place, 
Suite 100, Topeka, KS 66604-4040, (785) 271-2744. 
[email protected].
Kentucky
Scott Maas, USDA Rural Development, 771 Corporate Drive, Suite 200, 
Lexington, KY 40503, (859) 224-7435. [email protected].
Louisiana
Kevin Boone, USDA Rural Development, 905 Jefferson Street, Suite 
320, Lafayette, LA 70501, (337) 262-6601, Ext. 133. 
[email protected].
Maine
John F. Sheehan, USDA Rural Development, 967 Illinois Avenue, Suite 
4, P.O. Box 405,

[[Page 24770]]

Bangor, ME 04402-0405, (207) 990-9168. [email protected].

Maryland (see Delaware)

Massachusetts/Rhode Island/Connecticut

Charles W. Dubuc, USDA Rural Development, 451 West Street, Suite 2, 
Amherst, MA 01002, (401) 826-0842 X 306. [email protected].
Michigan
Traci J. Smith, USDA Rural Development, 3001 Coolidge Road, Suite 
200, East Lansing, MI 48823, (517) 324-5157. 
[email protected].
Minnesota
Lisa L. Noty, USDA Rural Development, 1400 West Main Street, Albert 
Lea, MN 56007, (507) 373-7960 Ext. 120. [email protected].
Mississippi
G. Gary Jones, USDA Rural Development, Federal Building, Suite 831, 
100 West Capitol Street, Jackson, MS 39269, (601) 965-5457. 
[email protected].
Missouri
Matt Moore, USDA Rural Development, 601 Business Loop 70 West, 
Parkade Center, Suite 235, Columbia, MO 65203, (573) 876-9321. 
[email protected].
Montana
John Guthmiller, USDA Rural Development, 900 Technology Blvd., Unit 
1, Suite B, P.O. Box 850, Bozeman, MT 59771, (406) 585-2540. 
[email protected].
Nebraska
Debra Yocum, USDA Rural Development, 100 Centennial Mall North, Room 
152, Federal Building, Lincoln, NE 68508, (402) 437-5554. 
[email protected].
Nevada
Herb Shedd, USDA Rural Development, 1390 South Curry Street, Carson 
City, NV 89703, (775) 887-1222. [email protected].

New Hampshire (See Vermont)

New Jersey

Victoria Fekete, USDA Rural Development, 8000 Midlantic Drive, 5th 
Floor North, Suite 500, Mt. Laurel, NJ 08054, (856) 787-7752. 
[email protected].
New Mexico
Jesse Bopp, USDA Rural Development, 6200 Jefferson Street, NE., Room 
255, Albuquerque, NM 87109, (505) 761-4952. [email protected].
New York
Thomas Hauryski, USDA Rural Development, 415 West Morris Street, 
Bath, NY 14810, (607) 776-7398 Ext. 132, 
[email protected].
North Carolina
David Thigpen, USDA Rural Development, 4405 Bland Rd. Suite 260, 
Raleigh, N.C. 27609, 919-873-2065. [email protected].
North Dakota
Dennis Rodin, USDA Rural Development, Federal Building, Room 208, 
220 East Rosser Avenue, P.O. Box 1737, Bismarck, ND 58502-1737, 
(701) 530-2068. [email protected].
Ohio
Randy Monhemius, USDA Rural Development, Federal Building, Room 507, 
200 North High Street, Columbus, OH 43215-2418, (614) 255-2424. 
[email protected].
Oklahoma
Jody Harris, USDA Rural Development, 100 USDA, Suite 108, 
Stillwater, OK 74074-2654, (405) 742-1036. [email protected].
Oregon
Don Hollis, USDA Rural Development, 1229 SE Third Street, Suite A, 
Pendleton, OR 97801-4198, (541) 278-8049, Ext. 129. 
[email protected].
Pennsylvania
Bernard Linn, USDA Rural Development, One Credit Union Place, Suite 
330, Harrisburg, PA 17110-2996, (717) 237-2182. 
[email protected].
Puerto Rico
Luis Garcia, USDA Rural Development, IBM Building, 654 Munoz Rivera 
Avenue, Suite 601, Hato Rey, PR 00918-6106, (787) 766-5091, Ext. 
251. [email protected].

Republic of Palau (See Hawaii)

Republic of the Marshall Islands (See Hawaii)

Rhode Island (see Massachusetts)

South Carolina

Shannon Legree, USDA Rural Development, Strom Thurmond Federal 
Building, 1835 Assembly Street, Room 1007, Columbia, SC 29201, (803) 
253-3150. [email protected].
South Dakota
Douglas Roehl, USDA Rural Development, Federal Building, Room 210, 
200 4th Street, SW., Huron, SD 57350, (605) 352-1145. 
[email protected].
Tennessee
Will Dodson, USDA Rural Development, 3322 West End Avenue, Suite 
300, Nashville, TN 37203-1084, (615) 783-1350. 
[email protected].
Texas
Daniel Torres, USDA Rural Development, Federal Building, Suite 102, 
101 South Main Street, Temple, TX 76501, (254) 742-9756. 
[email protected].
Utah
Roger Koon, USDA Rural Development, Wallace F. Bennett Federal 
Building, 125 South State Street, Room 4311, Salt Lake City, UT 
84138, (801) 524-4301. [email protected].
Vermont/New Hampshire
Cheryl Ducharme, USDA Rural Development, 89 Main Street, 3rd Floor, 
Montpelier, VT 05602, 802-828-6083. [email protected].
Virginia
Laurette Tucker, USDA Rural Development, Culpeper Building, Suite 
238, 1606 Santa Rosa Road, Richmond, VA 23229, (804) 287-1594. 
[email protected].

Virgin Islands (see Florida)

Washington

Mary Traxler, USDA Rural Development, 1835 Black Lake Blvd., SW., 
Suite B, Olympia, WA 98512, (360) 704-7762. 
[email protected].
West Virginia
Richard E. Satterfield, USDA Rural Development, 75 High Street, Room 
320, Morgantown, WV 26505-7500, (304) 284-4874. 
[email protected].
Wisconsin
Brenda Heinen, USDA Rural Development, 4949 Kirschling Court, 
Stevens Point, WI 54481, (715) 345-7615, Ext. 139. 
[email protected].
Wyoming
Jon Crabtree, USDA Rural Development, Dick Cheney Federal Building, 
100 East B Street, Room 1005, P.O. Box 11005, Casper, WY 82602, 
(307) 233-6719. [email protected].

FOR FURTHER INFORMATION CONTACT: For information about this Notice, 
please contact the USDA Rural Development--Energy Division, Program 
Branch, STOP 3225, Room 6870, 1400 Independence Avenue, SW., 
Washington, DC 20250-3225. Telephone: (202) 720-1400.
    For assistance on this program, please contact the applicable Rural 
Development's Rural Energy Coordinator, as provided in the Addresses 
section of this notice.

SUPPLEMENTARY INFORMATION: 

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995, Rural 
Development will seek OMB approval of the reporting and recordkeeping 
requirements contained in this Notice and hereby opens a 60-day public 
comment period.
    The Rural Energy for America Program, formerly section 9006 under 
the 2002 Farm Bill, is composed of several types of grants and 
guaranteed loan programs. These are: Guaranteed loans and grants for 
the development/construction of renewable energy systems and for energy 
efficiency improvement projects; grants for conducting energy audits; 
grants for conducting renewable energy development assistance; and 
grants for conducting renewable energy feasibility studies.
    The information collection request for this notice is specifically 
for renewable energy feasibility study grants, which are newly 
authorized under REAP. The information collection burden associated 
with the renewable energy system and energy efficiency improvement 
projects are currently approved under OMB Control Number 0570-0050. The 
information collection burden associated with the energy audit and 
renewable energy development assistance grants is under review by OMB.
    As noted above, this is a new information collection for the 
renewable energy system feasibility study grant portion of this Notice. 
Thus, the burden estimates reported in this notice are associated only 
with the feasibility study grants, and the Agency is asking

[[Page 24771]]

for comment only on the burden estimates for these feasibility study 
grants. Once approved, the Agency intends to merge and incorporate the 
burden for feasibility study grants, reported in this notice, into the 
burden for the consolidated grant rule information collection that is 
pending OMB approval.
    Title: Renewable Energy Feasibility Study Grants (part of the 
Renewable Energy for America Program).
    Type of Request: New collection.
    Abstract: Under this Notice, the Agency is providing grants to 
eligible applicants for the provision of renewable energy system 
feasibility studies to agricultural producers and rural small 
businesses.
    The collection of information is vital to the Agency to make wise 
decisions regarding the eligibility of applicants and their projects in 
order to ensure compliance with the provisions of this Notice. 
Applicants seeking a grant will have to submit applications that 
include specific information about the applicant and the proposed 
feasibility study (e.g., the renewable energy project for which the 
study will be conducted; matching funds), and the experience of the 
entity that will be conducting the feasibility study. In sum, this 
collection of information is necessary in order to implement this 
Program.
    The following estimates are based on the average over the first 
three years the program is in place.
    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 1.4 hours per response.
    Respondents: Agricultural producers and rural small businesses.
    Estimated Number of Respondents: 354.
    Estimated Number of Responses per Respondent: 9.6.
    Estimated Number of Responses: 3,395.
    Estimated Total Annual Burden (hours) on Respondents: 4,701.
    Copies of this information collection may be obtained from Cheryl 
Thompson, Regulations and Paperwork Management Branch, at (202) 692-
0043.

Comments

    Comments are invited on: (a) Whether the proposed collection of 
information is necessary for the proper performance of the functions of 
Rural Development, including whether the information will have 
practical utility; (b) the accuracy of Rural Development's estimate of 
the burden of the proposed collection of information including the 
validity of the methodology and assumptions used; (c) ways to enhance 
the quality, utility and clarity of the information to be collected; 
and (d) ways to minimize the burden of the collection of information on 
those who are to respond, including through the use of appropriate 
automated, electronic, mechanical, or other technological collection 
techniques or other forms of information technology. Comments may be 
sent to Cheryl Thompson, Regulations and Paperwork Management Branch, 
Support Services Division, U.S. Department of Agriculture, Rural 
Development, STOP 0742, 1400 Independence Ave., SW., Washington, DC 
20250. All responses to this notice will be summarized and included in 
the request for OMB approval. All comments will also become a matter of 
public record.

Overview Information

    Federal Agency Name. Rural Business--Cooperative Service.
    Funding Opportunity Title. Renewable Energy Systems and Energy 
Efficiency Improvements Grants and Guaranteed Loans and Renewable 
Energy Feasibility Studies Grants under the Rural Energy for America 
Program.
    Announcement Type. Initial announcement.
    Catalog of Federal Domestic Assistance (CFDA) Number. This program 
is listed in the Catalog of Federal Domestic Assistance under Number 
10.868.
    Dates. All applications must be completed and received in the 
appropriate United States Department of Agriculture (USDA) State Rural 
Development Office no later than 4:30 p.m. local time July 31, 2009. 
Applications received after 4:30 p.m. local time July 31, 2009, 
regardless of the application's postmark, will be returned to the 
applicant with no action.
    Availability of Notice. This Notice is available on the USDA Rural 
Development Web site at http://www.rurdev.usda.gov/rbs/busp/9006grant.htm.
    Notice Structure. Submission information specific to renewable 
energy system projects and energy efficiency improvement projects is 
found in Section IV and submission information specific to renewable 
energy system feasibility study projects is found in Section V. 
Requirements specified elsewhere in this Notice apply to all projects, 
unless otherwise stated.

I. Funding Opportunity Description

    A. Purpose. This Notice is issued pursuant to section 9001 of the 
Food, Conservation, and Energy Act of 2008 (2008 Farm Bill), which 
amends section 9006 of the Farm Security and Rural Investment Act of 
2002 (FSRIA), which establishes the Rural Energy for America Program 
under section 9007 of the 2008 Farm Bill. 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 2008 Farm Bill mandates the maximum percentages of funding that 
USDA Rural Development will provide. Within the maximum funding amounts 
specified in this Notice, funding approved for guaranteed loan only 
requests and for combination guaranteed loan and grant requests will 
not exceed 75 percent of eligible project costs, with the grant portion 
not to exceed 25 percent of eligible project costs, whether the grant 
is part of a combination request or is a stand-alone grant.
    B. Statutory Authority. This program is authorized under Title IX, 
Section 9001, of the Food, Conservation, and Energy Act of 2008 (Pub. 
L. 110-246).
    C. Definition of Terms. The following terms and the terms defined 
in 7 CFR part 4280 are applicable to this Notice. If this Notice and 7 
CFR part 4280 both define the same term, that term shall have the 
meaning provided in this Notice.
    Administrator. The Administrator of Rural Business--Cooperative 
Service within the Rural Development Mission Area of the U.S. 
Department of Agriculture.
    Departmental regulations. The regulations of the Department of 
Agriculture's Office of Chief Financial Officer (or successor office) 
as codified in 7 CFR parts 3000 through 3099, including but not 
necessarily limited to 7 CFR parts 3015 through 3019, 7 CFR part 3021, 
and 7 CFR part 3052, and successor regulations to these parts.
    EEI. Energy efficiency improvement.
    Energy efficiency hydropower projects. Projects that improve the 
efficiency of an existing hydropower system, such as replacement 
equipment.
    Hydropower. Energy created by use of various types of moving water 
including, but not limited to, ocean movement (tidal, wave, current, or 
thermal changes); diverted run-of-river water; in-stream run-of-river 
water; in-conduit water; or geothermally heated surface water.
    Public power entity. Is defined using the definition of state 
utility as defined in section 217(A)(4) of the Federal Power Act (16 
U.S.C. 824q(a)(4)). As of this writing, the definition is a State or 
any political subdivision of a State, or any agency, authority, or 
instrumentality of any one or more of the foregoing, or a corporation 
that is wholly owned, directly or indirectly, by

[[Page 24772]]

any one or more of the foregoing, competent to carry on the business of 
developing, transmitting, utilizing, or distributing power.
    Rated power. The amount of energy that can be created at any given 
time.
    Renewable biomass.
    (i) Materials, pre-commercial thinnings, or invasive species from 
National Forest System land and public lands (as defined in section 103 
of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1702)) 
that:
    (A) Are byproducts of preventive treatments that are removed to 
reduce hazardous fuels; to reduce or contain disease or insect 
infestation; or to restore ecosystem health;
    (B) would not otherwise be used for higher-value products; and
    (C) are harvested in accordance with applicable law and land 
management plans and the requirements for old-growth maintenance, 
restoration, and management direction of paragraphs (e)(2), (e)(3), and 
(e)(4) and large-tree retention of paragraph (f) of subsection of 
section 102 of the Healthy Forests Restoration Act of 2003 (16 U.S.C. 
6512); or
    (ii) Any organic matter that is available on a renewable or 
recurring basis from non-Federal land or land belonging to an Indian or 
Indian tribe that is held in trust by the United States or subject to a 
restriction against alienation imposed by the United States, including:
    (A) Renewable plant material, including feed grains; other 
agricultural commodities; other plants and trees; and algae; and
    (B) Waste material, including crop residue; other vegetative waste 
material (including wood waste and wood residues); animal waste and 
byproducts (including fats, oils, greases, and manure); and food waste 
and yard waste.
    Renewable energy. Energy derived from:
    (i) A wind, solar, renewable biomass, ocean (including tidal, wave, 
current, and thermal), geothermal or hydroelectric source; or
    (ii) Hydrogen derived from renewable biomass or water using wind, 
solar, ocean (including tidal, wave, current, and thermal), geothermal 
or hydroelectric energy sources.
    Renewable energy hydropower project. A new energy generation 
project that uses moving water as the feedstock equivalent.
    RES. Renewable energy system.
    Small hydropower. A hydropower project for which the rated power of 
the system is 30 megawatts or less.

II. Funding Information

    A. Available Funds. The amount of funds available for renewable 
energy system feasibility studies in FY 2009 will be not more than 10 
percent of the funds made available under the Rural Energy for America 
Program. The balance of the funds unused for the energy audit and 
renewable energy development assistance grants and the feasibility 
study grants will be available to the renewable energy systems and 
energy efficiency improvements projects under this program in FY 2009.
    B. Number of awards. The number of awards will depend on the number 
of eligible applicants participating in this program.
    C. Grant Funding Limitations. For the purposes of this Notice, the 
maximum amount of grant assistance to one individual or entity will not 
exceed $750,000 for FY 2009 under the Rural Energy for America Program. 
The Agency will not use less than 20 percent of the funds allocated for 
grants of $20,000 or less and not more than 10 percent of funds for 
grants to conduct renewable energy system feasibility studies.
    D. Types of Instrument. Grant, guaranteed loan, and grant/
guaranteed loan combinations. Only grants are available to conduct 
renewable energy system feasibility studies.

III. Application Submission Information

    Applicants seeking to participate in this program must submit 
applications in accordance with this Notice and 7 CFR part 4280, 
subpart B, as applicable. Applicants must submit complete applications 
in order to be considered. Note that for the Agency to consider an 
application, the application must include all environmental review 
documents with supporting documentation in accordance with 7 CFR part 
1940 subpart G.

A. Where To Obtain Applications

    Applicants may obtain applications from applicable Rural 
Development Rural Energy Coordinator, as provided in the ADDRESSES 
section of this Notice. In addition, for grant applications, applicants 
may access the electronic grant application for the Rural Energy for 
America Program at http://www.Grants.gov. To locate the downloadable 
application package for this program, the applicant must use the 
program's CFDA Number (i.e., 10.868) or FedGrants Funding Opportunity 
Number, which can be found at http://www.Grants.gov. To use Grants.gov, 
all applicants must have a Dun and Bradstreet Data Universal Numbering 
System (DUNS) number, (unless the applicant is an individual) which can 
be obtained at no cost via a toll-free request line at 1-866-705-5711 
or online at http://fedgov.dnb.com/webform.

B. When To Submit

    Submit applications to the appropriate USDA Rural Development State 
Office by July 31, 2009. All applications must be received at the 
appropriate State Office by 4:30 p.m. local time on the deadline date.

C. Where To Submit

    All applications are to be submitted to the Rural Development Rural 
Energy Coordinator in the State in which the applicant's proposed 
project is located. A list of Rural Development Rural Energy 
Coordinators is provided in the ADDRESSES section of this Notice. 
Alternatively, for grant applications, applicants may submit grant 
applications to the Agency via the Grants.gov Web site.

D. How To Submit

    Applicants may submit applications as either hard copy or 
electronically as specified in the following paragraphs. When 
submitting an application as hard copy, applicants must submit one 
original and one copy of the complete application.
    (1) Grant applications. Grant applications may be submitted either 
as hard copy to the appropriate Rural Development Rural Energy 
Coordinator or electronically using the government-wide Grants.gov Web 
site. Users of Grants.gov who download a copy of the application 
package may complete it off line and then upload and submit the 
application via the Grants.gov site, including all information 
typically included on the application, and all necessary assurances and 
certifications. After electronically submitting an application through 
the Web site, the applicant will receive an automated acknowledgement 
from Grants.gov that contains a Grants.gov tracking number.
    (2) Guaranteed loan applications. Guaranteed loan only applications 
(i.e., those that are not part of a guaranteed loan/grant combination 
request) must be submitted as hard copy.
    (3) Guaranteed loan/grant combination applications. Applications 
for guaranteed loans/grants (combination applications) must be 
submitted as hard copy.

F. Other Submission Requirements and Information

    (1) Application restrictions. Applications submitted under this

[[Page 24773]]

Notice are subject to the following restrictions:
    (i) Applicants can apply for only one renewable energy system 
project, one energy efficiency improvement project, and one renewable 
energy system feasibility study project under this Notice. A renewable 
energy system application cannot be submitted in FY2009 if a 
feasibility study grant application has been submitted in FY2009 for 
the same renewable energy system project.
    (ii) Technical reviews of complete applications are conducted on a 
rolling basis. Once the technical review of a complete application has 
been completed, the applicant will not be allowed to modify or resubmit 
the application.
    (2) Eligibility considerations. Eligibility is limited to projects 
that have completed the environmental review process according to 7 CFR 
4280.114(d); demonstrated project eligibility according to 7 CFR 
4280.108; except for renewable energy feasibility studies, demonstrated 
technical feasibility; and are complete will be eligible for funding 
consideration.
    (3) Grants.gov. When you enter the Grants.gov site, you will find 
information about submitting an application electronically through the 
site as well as the hours of operation. USDA Rural Development strongly 
recommends that applicants do not wait until the application deadline 
date to begin the application process through Grants.gov.
    (4) Original signatures. USDA Rural Development may request that 
the applicant provide original signatures on forms submitted through 
Grants.gov at a later date.
    (5) Intergovernmental review. The Rural Energy for America Program 
is subject to the provisions of Executive Order 12372, which requires 
intergovernmental consultation with State and local officials.
    (6) Award considerations. For renewable energy systems and energy 
efficiency improvements, in determining the amount of a loan guarantee 
or grant provided, the Agency shall take into consideration the 
following six criteria:
    (i) The type of renewable energy system to be purchased;
    (ii) The estimated quantity of energy to be generated by the 
renewable energy system;
    (iii) The expected environmental benefits of the renewable energy 
system;
    (iv) The quantity of energy savings expected to be derived from the 
activity, as demonstrated by an energy audit;
    (v) The estimated period of time for the energy savings generated 
by the activity to equal the cost of the activity; and
    (vi) The expected energy efficiency of the renewable energy system.

G. Hydropower Eligibility

    For the purposes of this Notice, only hydropower projects with a 
rated power of 30 megawatts or less are eligible. The Agency refers to 
these hydropower sources as ``small hydropower,'' which includes 
hydropower projects commonly referred to as ``micro-hydropower'' and 
``mini-hydropower.''

IV. Program Provisions Specific to Renewable Energy Systems and Energy 
Efficiency Improvements

    This section of the notice identifies what information renewable 
energy system and energy efficiency improvement (RES/EEI) applications 
are to contain, funding limitations, and other submission requirements 
and award information. Except as provided in this Notice, RES/EEI 
applications are to follow the provisions specified in 7 CFR 4280, 
subpart B.

A. Project Eligibility

    In addition to the project eligibility requirements specified in 
Sec.  4280.108, no renewable energy system or energy efficiency 
improvement, or portion thereof, can be used for any residential 
purpose, including any residential portion of a rural small business, 
farm, ranch, or agricultural facility. However, an applicant may apply 
for funding for the installation of a second meter or provide 
certification in the application that any excess power generated by the 
renewable energy system will be sold to the grid and will not be used 
by the applicant for residential purposes.

B. Applications

    In addition to the requirements found in 7 CFR part 4280, subpart 
B, the following also applies to RES/EEI applications submitted under 
this Notice.
    (1) One funding type applications. Only one type of funding 
application (grant-only, guaranteed loan-only, or guaranteed loan/grant 
combination) for each project can be submitted.
    (2) Environmental information. Each application must include all 
environmental review documents with supporting documentation in 
accordance with 7 CFR part 1940 subpart G.
    (3) Foreign technology. As stated in 7 CFR 4280.108, projects must 
be for a pre-commercial or commercially available technology. The 
definition of ``pre-commercial'' and ``commercial'' are at 7 CFR 
4280.103. The Agency's position is that if the system is currently 
commercially available only outside the United States (U.S.), then 
applicants must provide authoritative evidence of the foreign operating 
history, performance, and reliability in order to address the proven 
operating history identified in the definition. ``Commercial'' 
applicants must provide evidence that professional service providers, 
trades, large construction equipment providers and labor are readily 
available domestically and familiar with installation procedures and 
practices, and spare parts and service are readily available in the 
U.S. to properly maintain and operate the system. All warranties must 
be valid in the U.S.
    (4) Commercial application demonstration of precommercial 
technologies. In accordance with the definition of ``pre-commercial'' 
technology found in 7 CFR 4280.103, technical and economic potential 
for commercial application must be demonstrated to the Agency. In order 
to demonstrate the system has emerged through research and development 
as well as the demonstration process, applicants must provide 
authoritative evidence of the operating history, performance, and 
reliability past completion of start-up, shake-down, and commissioning. 
Typically, and in line with financial and operating performance 
evaluation protocol, the documented operating history, which may be 
established domestically or outside the U.S., should provide 
performance data for a minimum of 12 months. The time period will 
address the economic and technical performance potential of the pre-
commercial technology, as defined in 7 CFR 4280.103. Lastly, in 
accordance with demonstrating the potential for commercial application, 
applicants must provide evidence that professional service providers, 
trades, large construction equipment providers, and labor are 
potentially available domestically and sufficiently familiar with 
installation procedures and practices, and spare parts and service are 
available in the U.S. to properly maintain and operate the system. Any 
warranties would have to be valid in the U.S.
    (5) Format. To ensure that projects are accurately scored by the 
Agency, applicants are requested to tab and number each evaluation 
criteria and include, in that section, its corresponding supporting 
documentation and calculations according to 7 CFR 4280.112.

[[Page 24774]]

    (6) Technical report appendices. Technical reports for hydropower 
projects shall conform to Appendix A of this Notice. Technical reports 
for other renewable energy projects shall continue to conform to 
Appendix A or B, as applicable, to 7 CFR part 4280, subpart B.

D. Funding Limitations

    (1) Grant-only applications. For renewable energy system grants, 
the minimum grant is $2,500 and the maximum is $500,000. For energy 
efficiency improvement grants, the minimum grant is $1,500 and the 
maximum grant is $250,000.
    (2) Loan guarantee-only applications. For loan guarantees, the 
minimum guaranteed loan amount is $5,000 and the maximum amount of a 
guarantee to be provided to a borrower is $25 million. The maximum loan 
guarantee for a guaranteed loan in excess of $10 million is 60%. For FY 
2009, the guarantee fee amount is 1 percent of the guaranteed portion 
of the loan and the annual renewal fee is 0.250 percent (one-quarter of 
one percent) of the guaranteed portion of the loan.
    (3) Guaranteed loan and grant combination applications. Funding for 
grant and loan combination packages are subject to the funding 
limitations specified in paragraphs (1) and (2) of this section. For 
grant and loan combination packages, the minimum grant portion of the 
combined funding request is $1,500 for energy efficiency improvement 
projects and $2,500 for renewable energy system projects. All grant and 
loan combination packages will be funded from the same allocation as 
loan guarantees.

E. Award Process

    In addition to the process for awarding funding under 7 CFR part 
4280, subpart B, the Agency will make awards using the following 
considerations:
    (1) Scoring criteria. In addition to the criteria specified in 
Sec.  4280.112(e), the Agency will award 10 points to grant-only 
applications requesting $20,000 or less.
    (2) Technical review. Every RES/EEI application will receive a 
technical review. No RES/EEI application will receive more than one 
technical review.
    (3) Demonstrated financial need. As required in Sec. Sec.  
4280.108(a)(5), 4280.109(b)(2), and 4280.193(a), the applicant for a 
grant or combination guaranteed loan and grant must demonstrate 
financial need. Only those packages that demonstrate financial need 
will be considered for funding.
    (4) Combination applications. To ensure equitable competition and 
high quality projects, the grant portion of a combination application 
must score at least 20 points for technical merit. Only those 
combination packages that score a sufficient amount of technical merit 
points will be considered for funding. Applicants whose combination 
applications are approved for funding must accept and utilize both the 
loan and the grant.
    (5) Grant-only applications of $20,000 or less. As directed by 
statute, the Agency will use not less than 20 percent of the funds 
allocated to the Rural Energy for America Program for grants of $20,000 
or less. The Agency will establish a reserve at the National Office and 
States with grant-only requests of $20,000 or less may request funds 
from the reserve.
    (6) Change of contractor or vendor. After an award has been made, 
the recipient of the award can request to change a contractor or vendor 
if the technical merit score for the project remains the same or is 
higher. Prior to changing a contractor or vendor, the recipient must 
submit to the Agency a written request providing information that 
allows the Agency to rescore the project's technical merit. If the 
Agency determines that the project achieves the same or higher 
technical merit score, the recipient may make the change. No additional 
funding will be available from the Agency if costs for the project have 
increased. If the Agency determines that the project does not achieve 
the same or higher technical merit score, the change will not be 
approved.
    (7) Intergovernmental review. If State or local governments raise 
objections to a proposed project under the intergovernmental review 
process that are not resolved within 90 days of the Agency's selection 
of the application, the Agency will rescind the selection and will 
provide the applicant with a written notice to that effect.

V. Program Provisions for Renewable Energy Feasibility Study Grants

    Under 7 CFR part 4280, subpart B, certain renewable energy system 
project applications must include a business level feasibility study 
(see Sec.  4280.111(b)(8)). Such feasibility studies are now an 
eligible purpose under the Rural Energy for America Program for which a 
grant may be awarded. This section of the Notice identifies the 
procedures the Agency will use to process and select such feasibility 
study applications, award grants, and administer such financial 
assistance.

A. Existing Regulations

    Applicants submitting applications for feasibility studies are 
subject to the provisions of this Notice and to the grant provisions of 
7 CFR part 4280, subpart B, as may be modified under this section of 
this Notice.

B. Specific Requirements for This Notice

    As noted in the previous paragraph, the grant provisions of 7 CFR 
part 4280, subpart B, apply to applicants and their applications 
submitted under this Notice except as modified in this section of this 
Notice.
    (1) Applicant eligibility. In order to be eligible for a 
feasibility study grant under this Notice, the applicant must:
    (i) be a rural small business or agricultural producer as defined 
in Sec.  4280.103, and
    (ii) meet the eligibility criteria of Sec.  4280.107.
    (2) Project eligibility. Feasibility studies must be for a 
renewable energy system that:
    (i) is for the purchase, installation, expansion, or other energy-
related improvement of a renewable energy system;
    (ii) is located in a rural area; and
    (iii) is for technology that is pre-commercial or commercially 
available, and that is replicable.
    (3) Grant funding. The maximum amount for a feasibility study grant 
under this Notice is $50,000 or 25 percent of the eligible project cost 
(as described below) of the study, whichever is less. The grantee will 
have 2 years from the date of the grant agreement to provide the Agency 
with a complete and acceptable feasibility study and to request 
disbursement of the funds as described in Section V(12) of this notice. 
If the grantee does not submit to the Agency a complete and acceptable 
feasibility study within this 2 year period, the grant is subject to 
termination by and reimbursement to the Agency according to 7 CFR 3015.
    (4) Eligible project costs. Only those costs incurred after the 
application date specific to the development of the feasibility study 
(refer to Appendix B for further information on the content of a 
feasibility study) will be considered by the Agency in determining the 
size of the grant.
    (5) Application restrictions. Feasibility study applications:
    (i) can only be submitted as a stand-alone grant application;
    (ii) cannot be submitted for a renewable energy system project for 
which a feasibility study has been conducted or funded under any 
Federal or State program;

[[Page 24775]]

    (iii) can be submitted for a modification to an existing renewable 
energy system (e.g., for the expansion portion of an existing windmill 
farm); and
    (iv) cannot be submitted in FY 2009 for a RES project if an RES 
application for the same renewable energy system is submitted in FY 
2009 and vice versa.
    (6) Applications. An original and one complete copy of each 
application are required that follow the outline below. Each 
application must include a Table of Contents with clear pagination and 
chapter identification and the following:
    (i) Form SF 424, Application for Federal Assistance;
    (ii) Form SF-424B, Assurances--Non-Construction Programs;
    (iii) If an entity, one copy of the applicant's organizational 
documents; and
    (iv) A proposed work plan, which includes:
    (A) a brief description of the proposed system the feasibility 
study will evaluate;
    (B) a description of the feasibility study to be conducted. An 
acceptable feasibility study is outlined in Appendix B to this Notice. 
Applicants must require those conducting the feasibility study to 
consider and document within the feasibility study the important 
environmental factors within the planning area and the potential 
environmental impacts of the project for which the feasibility study is 
being conducted, as well as the alternatives considered.
    (C) the timeframe for completion of the feasibility study;
    (D) the experience of the company/individual completing the 
feasibility study, including the number of similar projects the 
company/individual has performed, the number of years the company has 
been performing a similar service, and corresponding resumes;
    (E) the source and amount of other project funds needs to be 
clearly identified. Agency approved written documentation/confirmation 
from any third party committing a specific amount of such funds is 
required. Documentation includes such items as bank statements, lender 
commitment letters, and so forth;
    (F) sufficient financial information to allow the Agency to 
determine the applicant's size. All information submitted under this 
paragraph must be substantiated by authoritative records.
    (1) If the applicant is a rural small business, provide sufficient 
information to determine its total annual receipts and number of 
employees and the same information for any parent, subsidiary, or 
affiliates at other locations. Voluntarily providing tax returns is one 
means of satisfying this requirement. The information provided must be 
sufficient for the Agency to make a determination of business size as 
defined by SBA.
    (2) If the applicant is an agricultural producer, provide the gross 
market value of the agricultural products, gross agricultural income, 
and gross nonfarm income of the applicant for the calendar year 
preceding the year in which the application is submitted; and
    (G) any Intergovernmental review comments from the State Single 
Point of Contact, or evidence that the State has elected not to review 
the program under Executive Order 12372; and
    (H) A certification that the applicant has not received any other 
Federal or State assistance for a feasibility study for the subject 
renewable energy system.
    (7) Evaluation of applications. Feasibility study applications 
submitted under this Notice will be evaluated by the applicable Rural 
Energy Coordinator for eligibility, completeness, and scoring.
    (i) General review. The Agency will evaluate each application and 
make a determination as to whether the applicant is eligible, the 
proposed grant is for an eligible feasibility study, and the proposed 
grant complies with all applicable statutes and regulations.
    (A) Applicant eligibility. The Agency will first determine whether 
the entity is eligible to compete for a feasibility study grant. 
Applications for applicants determined by the Agency not to be eligible 
will not be processed further. The Agency will determine applicant 
eligibility based on the criteria specified in this section.
    (B) Proposal eligibility. After determining applicant eligibility, 
the Agency will review the application to determine if the proposal is 
eligible. Applications determined by the Agency not to be eligible will 
not be processed further. The Agency will determine whether the 
application contains certification by the applicant that the applicant 
has neither sought nor received any other Federal or State assistance 
for a feasibility study on the subject facility. If the application 
does not contain such certification, it is an ineligible application 
and the Agency will stop processing the application. If the application 
contains such certification, the Agency will continue processing it.
    (ii) Ineligible applicants and applications. If either the 
applicant or the application is ineligible, the Agency will inform the 
applicant in writing of the decision, reasons therefore, and any appeal 
rights. No further evaluation of the application will occur.
    (iii) Incomplete applications. If the application is incomplete, 
the Agency will return it to the applicant. The Agency will identify 
those parts of the application that are incomplete. The applicant may 
resubmit the application, as long as it is received prior to the July 
31, 2009, deadline date.
    (8) Scoring applications. The Agency will assign a score to each 
eligible application as follows:
    (i) Energy replacement or generation. The project can be for either 
replacement or generation, but not both. A maximum of 25 points can be 
awarded under this section.
    (A) Energy replacement. 25 points will be awarded if proposed 
project will offset a portion or all of the applicants energy needs.
    (B) Energy generation. 15 points will be awarded if the proposed 
renewable energy system is intended primarily for production of energy 
for sale.
    (ii) Commitment of funds for the feasibility study. Other federal 
or state assistance for only the feasibility study would make the 
request ineligible. Appropriate documentation must verify commitment. A 
maximum of 10 points can be awarded under this section.
    (A) 10 points--100% of matching funds.
    (B) 7.5 points--75% up to, but not including 100% of matching 
funds.
    (C) 5 points--50% up to, but not including 75% of matching funds.
    (D) 0 points--less than 50% of matching funds.
    (iii) Designation as a small agricultural producer/very small 
business. An applicant will be considered either an agricultural 
producer or rural small business. No applicant will be considered as 
both. Points will only be awarded under either paragraph (iii)(A) or 
(iii)(B). A maximum of 20 points can be awarded under this section.
    (A) For an Agricultural Producer:
    (1) 10 points will be awarded if the applicant is an agricultural 
producer producing agricultural products with a gross market value of 
less than $600,000 in the preceding year, or
    (2) 20 points will be awarded if the applicant is an agricultural 
producer producing agricultural products with a gross market value of 
less than $200,000 in the preceding year.
    (B) For a Rural Small Business, 20 points will be awarded if the 
applicant is a very small business, as defined in Sec.  4280.103.
    (iv) Experience and qualifications of the entity identified to 
perform the feasibility study. A maximum of 15

[[Page 24776]]

points can be awarded under this section.
    (A) 15 points will be awarded if the entity has 5 or more years 
experience in the field of study for the technology field being 
proposed.
    (B) 7.5 points will be awarded if the entity has 2 or more years, 
but less than 5 years, experience in the field of study for the 
technology field being proposed.
    (C) 0 points will be awarded if the entity has less than 2 years 
experience in the field of study for the technology field being 
proposed.
    (v) Size of feasibility study grant request. A maximum of 20 points 
can be awarded under this section.
    (A) 20 points will be awarded if the feasibility study request is 
$10,000 or less.
    (B) 10 points will be awarded if the feasibility study request is 
more than $10,000 up to $25,000.
    (C) 0 points will be awarded if the feasibility study request is 
greater than $25,000.
    (vi) Resources to implement project. Considering the technology 
being proposed, the applicant may qualify for other local or State 
Programs to assist in the construction, or operation of the facility. 
These programs will benefit the applicant and/or proposed project 
during or after the facility is constructed and operational. A maximum 
of 10 points can be awarded under this section.
    (A) 5 points will be awarded if the applicant has identified local 
programs.
    (B) 5 points will be awarded if the applicant has identified State 
programs.
    (9) Award Process. The Agency will use the following process to 
determine which grants receive funding under this Notice.
    (i) Ranking of applications. All scored applications will be ranked 
by the Agency as soon after the application deadline as possible. All 
applications that are ranked will be considered for selection for 
funding.
    (ii) Selection of applications for funding. Applications will be 
selected based on their rank in accordance with their scores. If, after 
the majority of applications have been funded, insufficient funds 
remain to fund the next highest scoring application, the Agency may 
elect to fund a lower scoring application. Before this occurs, the 
Agency will provide the applicant of the higher scoring application the 
opportunity to reduce the amount of its grant request to the amount of 
funds available. If the applicant agrees to lower its grant request, it 
must certify that the purposes of the project can be met, and the 
Agency must determine the project is financially feasible at the lower 
amount. The Agency will notify, in writing, applicants whose 
applications have been selected for funding.
    (iii) Disposition of ranked applications not funded. Based on the 
availability of funding, a ranked application may not be funded in the 
fiscal year in which it was submitted. Such ranked applications will 
not be carried forward into the next fiscal year and the Agency will 
notify the applicant in writing.
    (10) Actions prior to grant closing.
    (i) Environmental. If construction is a component of the study, the 
appropriate level of environmental assessment must be completed prior 
to the obligation of funds. All feasibility study grants made under 
this Notice are subject to the requirements of subpart G of part 1940 
of this title. When construction is not a component of the study, 
feasibility studies are considered planning assistance, which are 
categorically excluded from the environmental review process by Sec.  
1940.333 of this title.
    (ii) Changes in project cost or scope. If there is a significant 
reduction in project cost or changes in project scope, the applicant's 
funding needs, eligibility, and scoring, as applicable, will be 
reassessed. Decreases in Agency funds will be based on revised project 
costs and other selection factors; however, other factors, including 
Agency regulations used at the time of grant approval, will remain the 
same. Obligated grant funds not needed to complete the project will be 
de-obligated.
    (iii) Evidence of other funds. Applicants expecting funds from 
other sources for use in completing projects being partially financed 
with Agency funds will present evidence of the commitment of these 
funds from such other sources.
    (11) Approval Process.
    (i) Letter of conditions. The Agency will notify the approved 
applicant in writing, setting out the conditions under which the grant 
will be made. The notice will include those matters necessary to ensure 
that the proposed grant is completed in accordance with the terms of 
the scope of work and budget, that grant funds are expended for the 
feasibility study, and that the applicable requirements prescribed in 
the relevant Department regulations are complied with. The Letter of 
Conditions will be sent to the applicant.
    (ii) Letter of Intent to Meet Conditions. Upon reviewing the 
conditions and requirements in the letter of conditions, the applicant 
must complete, sign and return a Form RD 1942-46, ``Letter of Intent to 
Meet Conditions,'' to the Agency; or if certain conditions cannot be 
met, the applicant may propose alternate conditions to the Agency. The 
Agency must concur with any changes proposed to the letter of 
conditions by the applicant before the application will be further 
processed.
    (iii) Grant agreement, forms, and certifications. Prior to grant 
approval, the applicant must complete, sign, and return a grant 
agreement, which is attached to this notice as Appendix C. In addition, 
the following forms and certifications must be submitted prior to grant 
approval:
    (A) Certification that the feasibility study grant will be for a 
renewable energy system project that is located in a rural area;
    (B) Form AD-1047, ``Certification Regarding Debarment, Suspension, 
and Other Responsibility Matters--Primary Covered Transactions;''
    (C) Form AD-1048, ``Certification Regarding Debarment, Suspension, 
Ineligibility and Voluntary Exclusion--Lower Tier Covered 
Transactions,'' including certification from any person or entity you 
do business with as a result of this government assistance that they 
are not debarred or suspended from government assistance;
    (D) Form AD-1049, ``Certification Regarding Drug-Free Workplace 
Requirements (Grants) Alternative I--For Grantees Other Than 
Individuals;''
    (E) Form SF-LLL, ``Disclosure Form to Report Lobbying'' or Exhibit 
A-1 of RD Instruction 1940-Q, ``Certification for Contracts, Grants, 
and Loans;'' and
    (F) Form RD 400-4, ``Assurance Agreement.''
    (iv) Grant approval. Form RD 1940-1 must be signed by the 
applicant.
    (A) The applicant will be sent a copy of the executed Form RD 1940-
1, the approved scope of work, and a grant agreement (see Appendix C to 
this Notice). The grant will be considered closed on the obligation 
date.
    (B) The grantee must abide by all requirements contained in the 
Grant Agreement, this Notice, and any other applicable Federal statutes 
or regulations. Failure to follow the requirements may result in 
termination of the grant and adoption of other available remedies.
    (12) Fund disbursement. Grant funds will be expended on a pro rata 
basis with matching funds.
    (i) Requests for reimbursement may be submitted monthly or more 
frequently if authorized to do so by the Agency. Ordinarily, payment 
will be made within 30 days after receipt of a proper request for 
reimbursement.

[[Page 24777]]

    (ii) The 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.
    (iii) Payment shall be made by electronic funds transfer.
    (iv) Standard Form 270, ``Request for Advance or Reimbursement,'' 
or other format prescribed by the Agency shall be used to request grant 
reimbursements.
    (v) For renewable energy system feasibility studies, 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 Agency until a feasibility study acceptable to the Agency has been 
submitted.
    (13) Deobligation of grant funds. Funds remaining after all costs 
incident to the project have been paid or provided for are subject to 
deobligation.
    (14) Monitoring and reporting project performance.
    (i) Monitoring of project. Grantees are responsible for ensuring 
all activities are performed within the approved scope of work and that 
funds are only used for approved purposes. Grantees shall constantly 
monitor performance to ensure that time schedules are being met, 
projected work by time periods is being accomplished, financial 
resources appropriately expended by contractors (if applicable), and 
any other performance objectives identified in the scope of work are 
being achieved. To the extent resources are available, the Agency will 
monitor grantees to ensure that activities are performed in accordance 
with the Agency-approved scope of work and to ensure that funds are 
expended for approved purposes. The Agency's monitoring of Grantees 
neither relieves the Grantee of its responsibilities to ensure that 
activities are performed within the scope of work approved by the 
Agency and that funds are expended for approved purposes only nor 
provides recourse or a defense to the Grantee should the Grantee 
conduct unapproved activities, engage in unethical conduct, engage in 
activities that are or give the appearance of a conflict of interest, 
or expend funds for unapproved purposes.
    (ii) Financial status reports. A SF-269, ``Financial Status 
Report,'' and a project performance activity report will be required of 
all grantees on a semiannual basis. The grantee will complete the 
project within the total sums available to it, including the grant, in 
accordance with the scope of work and any necessary modifications 
thereof prepared by grantee and approved by the Agency. The final 
Financial Status Report must be submitted to the Agency within 90 days 
after the feasibility study has been completed.
    (iii) Performance reports. Grantees must submit to the Agency, in 
writing, semiannual performance reports and a final performance report. 
Grantees are to submit an original of each report to the Agency.
    (A) Semiannual performance reports. Each semiannual performance 
report shall describe current progress and identify any problems, 
delays, or adverse conditions, if any, which have affected or will 
affect attainment of overall project objectives or prevent meeting time 
frame for completion of the feasibility study within two years. This 
disclosure shall be accompanied by a statement of the action taken or 
planned to resolve the situation.
    (B) Final performance report. A final performance report, which 
will serve as the last semiannual performance report, will be required 
within 90 days after the feasibility study has been completed. The 
final performance report shall summarize any problems, delays, or 
adverse conditions, if any, which have affected the project objectives 
or prevented meeting time frames for completion of the feasibility 
study. The final performance report should indicate if the grantee 
intends to proceed with the construction of the project.
    (iv) Final deliverables. Upon completion of the feasibility study, 
the grantee shall submit the following to the Agency:
    (A) the project feasibility study; and
    (B) SF-270, ``Request for Advance or Reimbursement.''
    (v) Reports required after feasibility study completion. Beginning 
the first full year after the feasibility study has been completed, 
grantees shall report annually for 2 years on the following:
    (A) Is the renewable energy system project for which the 
feasibility study was conducted underway? If yes, describe how far 
along the renewable energy system project is (e.g., financing has been 
secured, site has been secured, construction contracts are in place, 
project completed).
    (B) Is the renewable energy system project complete? If so, what is 
the actual amount of energy being produced?
    (vi) Other reports. The Agency may request any additional project 
and/or performance data for the project for which grant funds have been 
received.
    (15) Financial Management System and Records. Grantees are required 
to maintain a financial management system and records in accordance 
with 7 CFR 3015.
    (16) Grant servicing. Grants will be serviced in accordance with 
Departmental regulations and 7 CFR part 1951, subparts E and O. 
Grantees will permit periodic inspection of the project records and 
operations by a representative of the Agency. All non-confidential 
information resulting from the grantee's activities shall be made 
available to the general public on an equal basis.
    (17) Programmatic changes. The Grantee shall obtain prior Agency 
approval for any change to the scope or objectives of the approved 
project. Failure to obtain prior approval of changes to the scope of 
work or budget may result in suspension, termination, and recovery of 
grant funds.
    (18) Transfer of obligations. Subject to Agency approval, an 
obligation of funds established for a grantee may be transferred to a 
different (substituted) grantee provided:
    (i) The substituted grantee
    (A) is eligible;
    (B) has a close and genuine relationship with the original grantee; 
and
    (C) has the authority to receive the assistance approved for the 
original grantee; and
    (ii) The type of renewable energy technology and the scope of the 
project for which the Agency funds will be used remain unchanged.
    (19) Grant closeout and related activities. In addition to the 
requirements specified in the Departmental regulations, failure to 
submit satisfactory reports on time under the provisions of the 
Monitoring and Reporting Project Performance requirements of this 
Notice may result in the suspension or termination of a grant. The 
provisions of this section apply to grants and sub-grants.

VI. Administrative Information Applicable to This Notice

A. Notifications

    (1) Eligibility. If an applicant is determined by the Agency to be 
eligible for participation, the Agency will notify the applicant in 
writing. If an applicant is determined by the Agency to be ineligible, 
the Agency will notify the applicant, in writing, as to the reason(s) 
the applicant was rejected. Such applicant will have appeal rights as 
specified in this Notice.
    (2) Award. Each applicant will be notified of the Agency's decision 
on their application.

B. Administrative and National Policy Requirements

    (1) Review or appeal rights. A person may seek a review of an 
Agency

[[Page 24778]]

decision under this Notice from the appropriate Agency official that 
oversees the program in question or appeal to the National Appeals 
Division in accordance with 7 CFR part 11 of this title. If the review 
or appeal involves a combination funding request, both the lender and 
borrower must request the review or appeal.
    (2) Notification. If at any time prior to application approval it 
is decided that favorable action will not be taken on an application, 
the Agency will notify the applicant in writing of the decision and of 
the reasons why the request was not favorably considered. The 
notification will inform applicant officials of their rights to 
informal review, mediation, and appeal of the decision in accordance 
with 7 CFR part 11 and 7 CFR part 1900, subpart B.

C. Exception Authority

    Except as specified in paragraphs (1) through (3) of this section, 
the Administrator may make exceptions to any requirement or provision 
of this Notice, if such exception is in the best financial interests of 
the Federal Government and is otherwise not in conflict with applicable 
laws.
    (1) Applicant eligibility. No exception to applicant eligibility 
can be made.
    (2) Project eligibility. No exception to project eligibility can be 
made.
    (3) Rural area definition. No exception to the definition of rural 
area can be made.

D. Member or Delegate Clause

    No member of or delegate to Congress shall receive any share or 
part of this grant or any benefit that may arise therefrom; but this 
provision shall not be construed to bar as a contractor under the grant 
a publicly held corporation whose ownership might include a member of 
Congress.

E. Other USDA Regulations

    Feasibility study grants awarded under this Notice are subject to 
the provisions of the Department regulations, as applicable, which are 
incorporated by reference herein.

VII. Agency Contacts

    Notice Contact. For further information about this Notice, please 
contact the USDA Rural Development-Energy Division, Program Branch, 
STOP 3225, Room 6867, 1400 Independence Avenue, SW., Washington, DC 
20250-3225. Telephone: (202) 720-1400.

    For assistance on this Notice, please contact one of Rural 
Development's Rural Energy Coordinators, as provided in the Addresses 
section of this Notice.

VIII. Nondiscrimination Statement

    USDA prohibits discrimination in all its programs and activities on 
the basis of race, color, national origin, age, disability, and where 
applicable, sex, marital status, familial status, parental status, 
religion, sexual orientation, genetic information, political beliefs, 
reprisal, or because all or part of an individual's income is derived 
from any public assistance program. (Not all prohibited bases apply to 
all programs.) Persons with disabilities who require alternative means 
for communication of program information (Braille, large print, 
audiotape, etc.) should contact USDA's TARGET Center at (202) 720-2600 
(voice and TDD). To file a complaint of discrimination, write to USDA, 
Director, Office of Civil Rights, 1400 Independence Avenue, SW., 
Washington, DC 20250-9410, or call (800) 795-3272 (voice), or (202) 
720-6382 (TDD). ``USDA is an equal opportunity provider, employer, and 
lender.''

IX. Civil Rights Compliance Requirements

    All grants and guaranteed loans made under this Notice are subject 
to title VI of the Civil Rights Act of 1964 and part 1901, subpart E of 
this title.

    Dated: May 18, 2009.
William F. Hagy III,
Acting Administrator, Rural Business-Cooperative Service.

Appendix A--Technical Reports for Hydropower Projects

    The technical requirements specified in this appendix apply to 
all hydropower projects. Hydropower projects are those projects that 
create energy from moving water, including, but not necessarily 
limited to, ocean movement (tidal, wave, current, or thermal 
changes); diverted run-of-river water; in-stream run-of-river water; 
in-conduit water; or geo-thermally heated surface water.
    The Technical Report for hydropower projects must demonstrate 
that the project design, procurement, installation, startup, 
operation, and maintenance of the renewable energy system 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 this appendix. Supporting information may be submitted 
in other formats. Design drawings and process flowcharts are 
encouraged as exhibits. A discussion of each topic 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 report 
plus one copy to the Rural Development State Office. Hydropower 
projects with total eligible project costs greater than $400,000 
require the services of a licensed professional engineer (PE) or 
team of PEs. Depending on the level of engineering required for the 
specific project or if necessary to ensure public safety, the 
services of a licensed PE or a team of licensed PEs may be required 
for smaller projects.
    (a) Qualifications of project team. The hydropower 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 hydropower development, engineering, installation, and 
maintenance. Authoritative evidence that project team service 
providers have the necessary professional credentials or relevant 
experience to perform the required services must be provided. 
Authoritative evidence that vendors of proprietary components can 
provide necessary equipment and spare parts for the system to 
operate over its design life must also be provided. The application 
must:
    (1) 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 turnkey, 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;
    (2) Discuss the hydropower 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;
    (3) Discuss the project manager, equipment supplier, system 
designer, project engineer, and construction contractor 
qualifications for engineering, designing, and installing hydropower 
systems, including any relevant certifications by recognized 
organizations. Provide a list of the same or similar projects 
designed, installed, or supplied and currently operating with 
references, if available; and
    (4) Describe the system operator's qualifications and experience 
for servicing, operating, and maintaining hydropower projects. 
Provide a list of the same or similar projects designed, installed, 
or supplied and currently operating with references, if available.
    (b) Agreements, permits, and certifications. 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 (b)(1) through (6).
    (1) Identify zoning and code issues and required permits and the 
anticipated schedule for meeting those requirements and securing 
those permits. This list should include all local, state, and 
federal permits required, estimated timeline for each permit and 
current status of acquiring each permit.

[[Page 24779]]

    (2) Identify land use agreements required for the project and 
the anticipated schedule for securing the agreements and the term of 
those agreements.
    (3) Identify available component warranties for the specific 
project location and size.
    (4) For systems planning to interconnect with a utility, 
describe the utility's system interconnection requirements, power 
purchase arrangements, or licenses where required and the 
anticipated schedule for meeting those requirements and obtaining 
those agreements.
    (5) Identify all environmental issues, including environmental 
compliance issues, associated with the project on Form RD 1940-20, 
``Request for Environmental Information,'' and in compliance with 7 
CFR part 1940, subpart G, of this title. (Note: The environmental 
review process, including all required publications must be 
completed prior to approval of any Rural Development funding.) The 
applicant may want to work with all federal organizations involved 
with the project, to promulgate a single environmental review 
document.
    (6) Submit a statement certifying that the project will be 
installed in accordance with applicable local, State, and national 
codes, regulations, and permits.
    (c) Resource assessment. Provide adequate and appropriate data 
to demonstrate the amount of renewable resource available. Indicate 
the quality of the resource, including temperature (if applicable), 
flow, and sustainability of the resource, including a summary of the 
resource evaluation process and the specifications of the 
measurement setup and the date and duration of the evaluation 
process and proximity to the proposed site. If less than 1 year of 
data is used, a qualified consultant must provide a detailed 
analysis of the correlation between the site data and a nearby, 
long-term measurement site.
    (d) Design and engineering. Provide authoritative evidence that 
the system will be designed and engineered so as to meet its 
intended purpose, will ensure public safety, and will comply with 
applicable laws, regulations, agreements, permits, codes, and 
standards. Projects shall be engineered by a qualified party. 
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 party.
    (1) Provide a concise but complete description of the hydropower 
project, including location of the project, resource 
characteristics, 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.
    (2) Describe the project site and address issues such as site 
access, proximity to the electrical grid, environmental concerns 
with emphasis on land use, air quality, water quality, habitat 
fragmentation, visibility, noise, construction, and installation 
issues. Identify any unique construction and installation issues.
    (e) Project development schedule. 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.
    (f) Project economic assessment. Provide a study that describes 
the costs and revenues of the proposed project to demonstrate the 
financial performance of the proposed 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 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. In addition, provide 
other information necessary to assess the project's cost 
effectiveness.
    (g) Equipment procurement. Demonstrate that equipment required 
by the system is available and can be procured and delivered within 
the proposed project development schedule. Hydropower 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. Identify all the major equipment that is proprietary 
and justify how this unique equipment is needed to meet the 
requirements of the proposed design. Include a statement from the 
applicant certifying that ``open and free'' competition will be used 
for the procurement of project components in a manner consistent 
with the requirements of 7 CFR part 3015 of this title.
    (h) Equipment installation. Describe fully the management of and 
plan for site development and system installation, provide details 
regarding the scheduling of major installation equipment, including 
cranes, barges or other devices, needed for project construction, 
and provide a description of the startup and shakedown 
specifications and process and the conditions required for startup 
and shakedown for each equipment item individually and for the 
system as a whole. Include a statement from the applicant certifying 
that equipment installation will be made in accordance with all 
applicable safety and work rules.
    (i) Operations and maintenance. Identify the operations and 
maintenance requirements of the system necessary for the system to 
operate as designed over the design life. The application must:
    (1) Ensure that systems must have at least a 3-year warranty for 
equipment. Provide information regarding turbine warranties and 
availability of spare parts;
    (2) 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;
    (3) Provide information that supports expected design life of 
the system and timing of major component replacement or rebuilds;
    (4) Provide and discuss the risk management plan for handling 
large, potential failures of major components such as the turbine 
gearbox or rotor. Include in the discussion, costs and labor 
associated with the operation and maintenance of the system, and 
plans for in-sourcing or out-sourcing;
    (5) Describe opportunities for technology transfer for long-term 
project operations and maintenance by a local entity or owner/
operator; and
    (6) For owner maintained portions of the system, describe any 
unique knowledge, skills, or abilities needed for service operations 
or maintenance.
    (j) Dismantling and disposal of project components. Describe a 
plan for dismantling and disposing of project components and 
associated wastes at the end of their useful lives. Describe the 
budget for and any unique concerns associated with the dismantling 
and disposal of project components and their wastes.

Appendix B--Renewable Energy System Feasibility Study

    Elements in an acceptable feasibility study include, but are not 
necessarily limited to, the following elements:
     Executive Summary
     Economic Feasibility
     Market Feasibility
     Technical Feasibility (including the appropriate 
technical report)
     Financial Feasibility
     Management Feasibility
     Qualifications
    As noted above, both a technical report for the project and an 
economic analysis of the project are required as part of the 
feasibility study. The technical report to be provided must conform 
to that required under 7 CFR part 4280, as applicable or, if the 
renewable energy system is a hydropower project, under this notice. 
The following paragraphs describe the contents that each of section 
that the feasibility study must contain, as applicable.
    Executive Summary. Provide an introduction and overview of the 
project. In the overview, describe the nature and scope of the 
proposed project, including purpose, project location, design 
features, capacity, and estimated total capital cost. Include a 
summary of each of the elements of the feasibility study, including:

[[Page 24780]]

     Economic feasibility determinations.
     Market feasibility determinations.
     Technical feasibility determinations.
     Financial feasibility determinations.
     Management feasibility determinations.
    In addition, include a section on recommendations for 
implementation of the proposed project.
    Economic Feasibility. Provide information regarding project 
site; the availability of trained or trainable labor; and the 
availability of infrastructure, including utilities, and rail, air 
and road service to the site. Discuss feedstock source management, 
including feedstock collection, pre-treatment, transportation, and 
storage, and provide estimates of feedstock volumes and costs. 
Discuss the proposed project's potential impacts on existing 
manufacturing plants or other facilities that use similar feedstock 
if the proposed technology is adopted. Provide projected impacts of 
the proposed project on resource conservation, public health, and 
the environment. Provide an overall economic impact of the project 
including any additional markets created (e.g., for agricultural and 
forestry products and agricultural waste material) and potential for 
rural economic development. Provide feasibility/plans of project to 
work with producer associations or cooperatives including estimated 
amount of annual feedstock and biofuel and byproduct dollars from 
producer associations and cooperatives.
    Market Feasibility. Provide information on the sales 
organization and management. Discuss the nature and extent of market 
and market area and provide marketing plans for sale of projected 
output, including both the principle products and the by-products. 
Discuss the extent of competition including other similar facilities 
in the market area. Provide projected total supply and projected 
competitive demand of raw materials. Describe the procurement plan, 
including projected procurement costs and the form of commitment of 
raw materials (marketing agreements, etc.). Identify commitments 
from customers or brokers for both the principle products and the 
by-products. Discuss all risks related to the industry, including 
industry status.
    Technical Feasibility. The technical feasibility report shall be 
based upon verifiable data and contain sufficient information and 
analysis so that a determination may be made on the technical 
feasibility of achieving the levels of income or production that are 
projected in the financial statements. The Project engineer or 
architect is considered an independent party provided neither the 
principals of the firm nor any individual of the firm who 
participates in the technical feasibility report has a financial 
interest in the project. If no other individual or firm with the 
expertise necessary to make such a determination is reasonably 
available to perform the function, an individual or firm that is not 
independent may be used.
    Identify any constraints or limitations in the financial 
projections and any other facility or design-related factors that 
might affect the success of the enterprise. Identify and estimate 
project operation and development costs and specify the level of 
accuracy of these estimates and the assumptions on which these 
estimates have been based.
    Discuss all risks related to construction of the project and 
regulation and governmental action as they affect the technical 
feasibility of the project.
    Financial Feasibility. Discuss the reliability of the financial 
projections and assumptions on which the financial statements are 
based including all sources of project capital both private and 
public, such as Federal funds. Provide three years (minimum) 
projected Balance Sheets and Income Statements and cash flow 
projections for the life of the project. Discuss the ability of the 
business to achieve the projected income and cash flow. Provide an 
assessment of the cost accounting system. Discuss the availability 
of short-term credit or other means to meet seasonable business 
costs and the adequacy of raw materials and supplies. Provide a 
sensitivity analysis, including feedstock and energy costs. Discuss 
all risks related to the project, borrower financing plan, the 
operational units, and tax issues.
    Management Feasibility. Discuss the continuity and adequacy of 
management. Identify borrower and/or management's previous 
experience concerning the receipt of federal financial assistance, 
including amount of funding, date received, purpose, and outcome. 
Discuss all risks related to the borrower as a company (e.g., 
borrower is at the Development-Stage) and conflicts of interest, 
including appearances of conflicts of interest.
    Qualifications. Provide a resume or statement of qualifications 
of the author of the feasibility study, including prior experience.


Appendix C--Grant Agreement for Renewable Energy System Feasibility 
Studies

    This GRANT AGREEMENT is a contract for receipt of grant funds to 
conduct feasibility studies for renewable energy system projects 
under the Rural Energy for America program, Title IX, Section 9001 
of the Food, Conservation, and Energy Act of 2008,'' (Pub. L. 110-
234) between the Grantee and the United States of America acting 
through Rural Development, Department of Agriculture (Grantor). All 
references herein to ``Project'' refer to renewable energy system 
feasibility study project identified in the work plan submitted with 
the application. Should actual project costs be lower than projected 
in the work plan, the final amount of grant may be adjusted.

(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 the Departmental 
regulations as codified in 7 CFR parts 3000 through 3099, including 
but not necessarily limited to 7 CFR parts 3015 and successor 
regulations to these parts, which are incorporated into this 
Agreement by reference, any Notices relating to this program 
published in the Federal Register, and other applicable statutory 
provisions.
    Any application submitted by the Grantee for this grant, 
including any attachments or amendments, is incorporated and 
included as part of this Agreement. Any changes to these documents 
or this Agreement must be approved in writing by the Grantor.
    In addition to any other rights, 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.

(3) Civil Rights Compliance

    Grantee will comply with Executive Order 12898, 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, disability, faith based (if applicable) and national 
origin of the Grantee's membership/ownership and employees. These 
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 
acceptable accounting principles (GAAP) or with principles that are 
generally required by commercial agriculture lenders and supported 
by source documentation; and
    (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 completion of grant 
activities, except that the

[[Page 24781]]

records shall be retained beyond the 3-year period if audit findings 
have not been resolved or if directed by the United States. 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 which are 
pertinent to the grant for the purpose of making audits, 
examinations, excerpts, and transcripts.

(5) Procurement

    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.

(6) Monitoring and Reporting

    A. After grant approval through project completion, the Grantee 
shall:
    1. Constantly monitor performance to ensure that time schedules 
are being met and projected goals by time periods are being 
accomplished.
    2. Submit semiannual performance reports to the Grantor. Each 
report shall describe current progress and identify any problems, 
delays, or adverse conditions, if any, which have affected or will 
affect attainment of overall project objectives or prevent meeting 
time frame for completion of the feasibility study within two years. 
This disclosure shall be accompanied by a statement of the action 
taken or planned to resolve the situation.
    B. Following completion of the feasibility study, Grantee shall 
submit to the Grantor:
    1. The project feasibility study and SF-270, ``Request for 
Advance or Reimbursement,'' when the feasibility study has been 
completed; and
    2. A final SF-269, ``Financial Status Report'' and a final 
performance report within 90 days of the completion of the 
feasibility study. When submitting the final SF-269, Grantee must 
submit sufficient documentation, including invoices, to allow the 
Grantor to verify that said project was completed within the total 
sums available to it, including the grant and matching funds, in 
accordance with the work plan and any necessary modifications 
thereof prepared by grantee and approved by the Grantor; and
    C. Beginning the first full year after the feasibility study has 
been completed, Grantee shall report to the Grantor annually for 2 
years on the following:
    (1) Is the renewable energy system project for which the 
feasibility study was conducted underway as a result of the 
feasibility findings? If yes, describe how far along the renewable 
energy system project is (e.g., financing has been secured, site has 
been secured, construction contracts are in place, project 
completed).
    (2) Is the renewable energy system project complete? If so, what 
is the actual amount of energy being produced?
    D. Other reports. Grantor may request any additional project 
and/or performance data for the project for which grant funds have 
been received.
    E. Records access. Grantee shall after project completion allow 
Grantor access to the records and performance information obtained 
under the scope of the project.

(7) Fund Disbursement

    Grant funds will be expended on a pro rata basis with matching 
funds.
    A. Grantee may submit requests for reimbursement monthly or more 
frequently if authorized to do so by the Agency. Ordinarily, Grantor 
will make payment 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. An SF-270, ``Request for Advance or Reimbursement,'' must be 
completed by the Grantee and submitted to the Agency at the 
completion of the feasibility study.
    E. Grantor will disburse grant funds to the Grantee in 
accordance with the above through 90 percent of grant disbursement. 
Grantor will hold 10 percent of grant funds until Grantee has 
submitted a feasibility study acceptable to the Grantor.

(8) Use of Remaining Grant Funds

    Grant funds not expended within 24 months from date of this 
agreement after being used for eligible grant purposes will be 
cancelled by the Agency. Prior to the actual cancellation, the 
Agency will notify, in writing, the Grantee of the Agency's intent 
to cancel the remaining funds.
    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:

GRANTEE
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Name:

Title:

GRANTOR
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Date

United States of America Rural Development
By:
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Name:

Title:

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Date

[FR Doc. E9-12178 Filed 5-22-09; 8:45 am]
BILLING CODE 3410-XY-P