[Federal Register Volume 75, Number 102 (Thursday, May 27, 2010)]
[Notices]
[Pages 29706-29717]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-12583]


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DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service


Notice of Funding Availability (NOFA) for Energy Audits and 
Renewable Energy Development Assistance Under the Rural Energy for 
America Program

AGENCY: Rural Business-Cooperative Service, USDA.

ACTION: Notice.

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SUMMARY: 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 Agency is implementing the Rural Energy for America Program 
(REAP) for Fiscal Year 2010 through the publication of three REAP 
notices:
     Renewable energy system and energy efficiency improvement 
grants and guaranteed loans;
     Energy audit and renewable energy development assistance 
grants; and
     Renewable energy feasibility study grants.
    This REAP notice announces the availability of $2.4 million for 
fiscal year (FY) 2010 to units of State, tribal, or local government; 
instrumentalities of a State, tribal, or local government; land-grant 
colleges and universities and other institutions of higher education, 
including 1994 Land Grant Colleges

[[Page 29707]]

(Tribal Colleges), 1890 Land Grant Colleges, and Historically Black 
Universities; rural electric cooperatives; and public power entities 
for the provision of energy audits and renewable energy development 
assistance to agricultural producers and rural small businesses. This 
funding will be available in the form of grants. Funds that are not 
awarded will convert to the REAP pool.
    Lastly, the Agency intends to publish a proposed rule that will 
revise the current program, in large part to conform with the 
requirements set out by the 2008 Farm Bill, at 7 CFR 4280, subpart B to 
include renewable energy feasibility study grants, and that will add a 
new subpart C to address energy audit and renewable energy development 
assistance grants. Together, these two subparts will represent the 
Rural Energy for America Program as authorized under section 9007 of 
the Farm Security and Rural Investment Act of 2002 as amended by 
section 9001 of the Food, Energy, and Conservation Act of 2008. The 
Agency anticipates publishing final regulations to operate the Rural 
Energy for America Program in fiscal year 2011.

DATES: Applications for grants must be submitted on paper or 
electronically no later than 4:30 p.m., local time July 26, 2010. 
Neither complete nor incomplete applications received after this date 
and time will be considered for funding in FY 2010, regardless of the 
postmark on the application.

ADDRESSES: Application materials may be obtained by contacting one of 
Rural Development's 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, an 
applicant 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 principal office is 
located.

Rural Development 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

Chad Stovall, USDA Rural Development, 800 West Evergreen, Suite 201, 
Palmer, AK 99645-6539, (907) 761-7718, [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, 2600 Highway 7 North, North Vernon, 
IN 47265, (812) 346-3411, Ext 126, [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) 271-2730, 
[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, 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,

[[Page 29708]]

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

Scott Collins, USDA Rural Development, 9025 River Road, Marcy, NY 
13403, (315) 736-3316 Ext. 4, [email protected]

North Carolina

David Thigpen, USDA Rural Development, 4405 Bland Rd. Suite 260, 
Raleigh, NC 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, 200 SE Hailey Ave, Suite 105, 
Pendleton, OR 97801, (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 Energy Branch, USDA Rural Development, STOP 3225, 
Room 6870, 1400 Independence Avenue, SW., Washington, DC 20250-3225. 
Telephone: (202) 720-1400.
    For assistance on energy audit and renewable energy development 
assistance grants, please contact the applicable Rural Development 
Energy Coordinator, as provided in the ADDRESSES section of this 
Notice.

[[Page 29709]]


SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995, the 
information collection requirements associated with energy audit and 
renewable energy development assistance grants, as covered in this REAP 
notice, has been approved by the Office of Management and Budget (OMB) 
under OMB Control Number 0570-0059.
    The information collection requirements associated with renewable 
energy system and energy efficiency improvement grants and guaranteed 
loans and with renewable energy feasibility study grants, which will be 
addressed in their respective REAP notices, have also been approved by 
OMB under OMB Control Number 0570-0050 and OMB Control Number 0570-
0061, respectively. When the Agency publishes the proposed rule for 
REAP, it will consolidate the information collection requirements 
associated with this REAP notice and the other two REAP notices into a 
single information collection package for OMB approval.

Overview Information

    Federal Agency Name. Rural Business-Cooperative Service.
    Funding Opportunity Title. Energy Audit and Renewable Energy 
Development Assistance under the Rural Energy for America Program.
    Announcement Type. Initial announcement.
    Catalog of Federal Domestic Assistance (CFDA) Number. These 
activities under the Rural Energy for America Program are listed in the 
Catalog of Federal Domestic Assistance under Number 10.868.
    Dates. 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 26, 2010, in 
order to be considered for funding in FY 2010. Applications received 
after 4:30 p.m. local time July 26, 2010, regardless of the 
application's postmark, will not be considered for funding in FY 2010.
    Availability of Notice. This Notice is available on the USDA Rural 
Development Web site at http://www.rurdev.usda.gov/rbs/busp/REAPEA.htm.

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) (Pub. L. 
110-246), which amends Title IX of the Farm Security and Rural 
Investment Act of 2002 (FSRIA) and establishes the Rural Energy for 
America Program under section 9007 thereof. The 2008 Farm Bill requires 
the Secretary of Agriculture to create a program to make grants to 
units of State, tribal, or local government; land-grant colleges or 
universities or other institutions of higher education, including 1994 
Land Grant Colleges (Tribal Colleges), 1890 Land Grant Colleges, and 
Historically Black Universities; rural electric cooperatives or public 
power entities; and instrumentalities of a State, tribal, or local 
government, to assist agricultural producers and rural small businesses 
by conducting energy audits and providing recommendations and 
information on renewable energy development assistance and improving 
energy efficiency. These projects (energy audits and renewable energy 
development assistance) are 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 
that the recipient of a grant that conducts an energy audit for an 
agricultural producer or a rural small business require the 
agricultural producer or rural small business to pay at least 25 
percent of the cost of the energy audit, which shall be retained by the 
eligible entity for the cost of the audit.
    B. Statutory Authority. These activities (energy audits and 
renewable energy development assistance) are found in the Rural Energy 
for America Program, which 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 definitions are applicable to 
this Notice.
    Administrator. The Administrator of Rural Business-Cooperative 
Service within the Rural Development Mission Area of the U.S. 
Department of Agriculture.
    Agricultural producer. An individual or entity directly engaged in 
the production of agricultural products, including crops (including 
farming); livestock (including ranching); forestry products; 
hydroponics; nursery stock; or aquaculture, whereby 50 percent or 
greater of their gross income is derived from the operations.
    Departmental regulations. The regulations of the Department of 
Agriculture's Office of the 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.
    Energy audit. An audit conducted by a certified energy manager or 
professional engineer that focuses on potential capital-intensive 
projects and involves detailed gathering of field data and engineering 
analysis. The audit will provide detailed project costs and savings 
information with a high level of confidence sufficient for major 
capital investment decisions.
    Hydroelectric energy. Electrical energy created by use of various 
types of moving water including, but not limited to, diverted run-of-
river water, in-stream run-of-river water, and in-conduit water.
    Hydropower. Energy created by hydroelectric or ocean energy.
    Institution of higher education. As defined in 20 U.S.C. 1002(a).
    Instrumentality. An organization recognized, established, and 
controlled by a State, tribal, or local government, for a public 
purpose or to carry out special purposes.
    Ocean energy. Energy created by use of various types of moving 
water including, but not limited to, tidal, wave, current, and thermal 
changes.
    Post-application. The period of time after the Agency has received 
a complete application. A complete application is an application that 
contains all parts necessary for the Agency to determine applicant and 
project eligibility, to score the application, and to conduct the 
technical evaluation.
    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 any one or more of the 
foregoing, competent to carry on the business of developing, 
transmitting, utilizing, or distributing power.
    Qualified consultant. An independent third-party possessing the 
knowledge, expertise, and experience to perform in an efficient, 
effective, and authoritative manner the specific task required.
    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:

[[Page 29710]]

    (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 subsection (f) 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 Development Assistance. Assistance provided by 
eligible grantees to agricultural producers and rural small businesses 
to become more energy efficient and to use renewable energy 
technologies and resources. The renewable energy development assistance 
may consist of renewable energy site assessment and/or renewable energy 
technical assistance.
    Renewable energy technical assistance. Assistance provided to 
agricultural producers and rural small businesses on how to use 
renewable energy technologies and resources in their operations.
    Renewable energy site assessment. A report provided to an 
agricultural producer or rural small business providing recommendations 
and information regarding the use of renewable energy technologies in 
its operations. The report shall be prepared by a qualified consultant 
and evaluate a specific site or geographic area for potential use of 
one or more renewable energy technologies. Typically, the report will 
evaluate a potential renewable energy project with an estimated total 
cost of construction of less than $200,000. The evaluation shall be 
based on existing data, which may include data regarding existing and/
or proposed structures, commercially available technologies, feed-
stocks, and other renewable energy resources. The report will consider 
factors such as the site and the potential uses of renewable energy 
technology at the site. The report will not include information about 
any residential dwelling(s).
    Rural. Any area other than a city or town that has a population of 
greater than 50,000 inhabitants and the urbanized area contiguous and 
adjacent to such a city or town according to the latest decennial 
census of the United States.
    Small business. An entity considered a small business in accordance 
with the U.S. Small Business Administration's (SBA) small business size 
standards found in Title 13 CFR part 121. A private entity, including a 
sole proprietorship, partnership, corporation, cooperative (including a 
cooperative qualified under section 501(c)(12) of the Internal Revenue 
Code), and an electric utility, including a Tribal or governmental 
electric utility, that provides service to rural consumers on a cost-
of-service basis without support from public funds or subsidy from the 
Government authority establishing the district, provided such utilities 
meet SBA's definition of small business. These entities must operate 
independently of direct Government control. With the exception of the 
entities described above, all other non-profit entities are excluded.
    Small hydropower. A hydropower project for which the rated power of 
the system is 30 megawatts or less.
    State. Any of the 50 states of the United States, the Commonwealth 
of Puerto Rico, the District of Columbia, the U.S. Virgin Islands, 
Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, 
the Republic of Palau, the Federated States of Micronesia, or the 
Republic of the Marshall Islands.

II. Funding Information

    A. Available Funds. The amount of grant funds available for energy 
audits and renewable energy development assistance in FY 2010 is $2.4 
million.
    Based on the quality of the applications received under this REAP 
notice, the Agency reserves the right, at its discretion, to move funds 
from this Notice to fund applications received under the other two REAP 
notices. Conversely, the Agency may, at its discretion, move money for 
the other two REAP notices to fund applications received under this 
REAP notice if the quality and number of applicants merits it. The 
Agency's ability to move funds is subject to the limitation contained 
in section 9007(c)(3)(B) of the Farm Security and Rural Investment Act 
of 2002, which limits funding for feasibility studies to not exceed 
more than 10 percent of the funds made available to carry out the total 
amount made available under the renewable energy system and energy 
efficiency improvements REAP notice and the feasibility study REAP 
notice.
    B. Number of Grants. The number of grants will depend on the number 
of eligible applicants participating in conducting energy audits and 
providing renewable energy development assistance.
    C. Range of Amounts of Each Grant. To ensure applications for 
energy audits and renewable energy development assistance will allow 
the maximum number of States to benefit from these projects under the 
Rural Energy for America Program, grants awarded to a single applicant 
will be limited to no more than $100,000 under this Notice.
    D. Type of Instrument. Grant.

III. Eligibility Information

    Eligibility requirements for energy audit and renewable energy 
development assistance grants under the Rural Energy for America 
Program are:
    A. Applicant eligibility. To be eligible for an energy audit grant 
or a renewable energy development assistance grant under the Rural 
Energy for America Program, the applicant must meet each of the 
criteria, as applicable, set forth in paragraphs (1) through (4) in 
this section. The Agency will determine an applicant's eligibility.
    (1) Type of applicant. The applicant must be one of the following:
    (i) A unit of State, tribal, or local government;
    (ii) A land-grant college or university or other institution of 
higher education;
    (iii) A rural electric cooperative;
    (iv) A public power entity; or
    (v) An instrumentality of a State, tribal, or local government.
    (2) Citizenship. The applicant must meet the requirements in 
paragraphs (2)(i) or (ii), as applicable, of this section.
    (i) If the applicant is an individual, the applicant must be a 
citizen or national of the United States (U.S.), the Republic of Palau, 
the Federated States of Micronesia, the Republic of the

[[Page 29711]]

Marshall Islands, or American Samoa, or must reside in the U.S. after 
legal admittance for permanent residence.
    (ii) If the applicant is an entity other than an individual, the 
applicant must be at least 51 percent owned by persons who are either 
citizens or nationals of the U.S., the Republic of Palau, the Federated 
States of Micronesia, the Republic of the Marshall Islands, or American 
Samoa, or legally admitted permanent residents residing in the U.S. 
This paragraph is not applicable if the entity is owned solely by 
members of an immediate family. In such instance, if at least one of 
the immediate family members is a citizen or national, as defined in 
paragraph (2)(i) of this section, then the entity is eligible.
    (3) Capacity to perform. The applicant must have sufficient 
capacity to perform the energy audit or renewable energy development 
assistance activities proposed in the application to ensure success. 
The Agency will make this assessment based on the information provided 
in the application.
    (4) Legal authority and responsibility. Each applicant must have, 
or obtain, the legal authority necessary to carry out the purpose of 
the grant.
    (5) Ineligible applicants. Consistent with Departmental 
regulations, an applicant is ineligible if it is debarred or suspended 
or is otherwise excluded from or ineligible for participation in 
Federal assistance programs. Applicants will also be considered 
ineligible for a grant if they have an outstanding Federal judgment 
(other than one obtained in the U.S. Tax Court), are delinquent on the 
payment of Federal income taxes, or are delinquent on Federal debt.
    B. Project Eligibility.
    To be eligible for an energy audit or a renewable energy 
development assistance grant, the grant funds for a project must be 
used by the grant recipient to assist agricultural producers or rural 
small businesses in one or both of the purposes specified in paragraphs 
(1) and (2) below and shall also comply with paragraph (3) and, if 
applicable, paragraph (4).
    (1) Grant funds may be used to conduct and promote energy audits 
that meet the requirements of the energy audit as defined in this 
Notice. Energy audits must:
    (i) Include a narrative description of the facility or process 
being audited; its energy system(s) and usage; its activity profile; 
and the price per unit of energy (electricity, natural gas, propane, 
fuel oil, renewable energy, etc.) paid by the customer over the 
previous 12 months from the date of the audit. Any energy conversion 
data should be based on use and source.
    (ii) List specific information regarding all potential energy-
saving opportunities and the associated cost.
    (iii) Discuss the possible interactions of the potential 
improvements with existing energy systems.
    (A) Estimate the annual energy and energy costs savings expected 
from each possible improvement recommended for the potential project.
    (B) Estimate all direct and attendant indirect costs of each 
improvement.
    (C) Rank potential improvement measures by cost-effectiveness.
    (iv) Provide a narrative summary of the potential improvement and 
its ability to provide needed benefits, including a discussion of 
nonenergy benefits such as project reliability and durability.
    (A) Provide preliminary specifications for critical components.
    (B) Provide preliminary drawings of project layout, including any 
related structural changes.
    (C) Document baseline data compared to projected consumption, 
together with any explanatory notes. When appropriate, show before-and-
after data in terms of consumption per unit of production, time or 
area. Include at least 1 year's bills for those energy sources/fuel 
types affected by this project. Also submit utility rate schedules, if 
appropriate.
    (D) Identify significant changes in future related operations and 
maintenance costs, including person-hours.
    (E) Describe explicitly how outcomes will be measured annually.
    (2) Grant funds may be used to conduct and promote renewable energy 
development assistance by providing to agricultural producers and rural 
small businesses recommendations and information on how to improve the 
energy efficiency of their operations and to use renewable energy 
technologies and resources in their operations.
    (3) Energy audit assistance and renewable energy development 
assistance can be provided only to facilities located in rural areas.
    (4) For the purposes of this Notice, only small hydropower projects 
are eligible for energy audits and renewable energy development 
assistance. Per consultation with the U.S. Department of Energy, the 
Agency is defining small hydropower as having a rated power of 30 
megawatts or less, which includes hydropower projects commonly referred 
to as ``micro-hydropower'' and ``mini-hydropower.''

IV. Application and Submission Information

A. Address To Request Application

    Applicants may obtain applications from the applicable Rural 
Development Energy Coordinators, as provided in the Addresses section 
of this Notice. Applicants planning to apply electronically must visit 
http://www.grants.gov and follow the instructions.

B. Content and Form of Submission

    Applicants must submit an original and one copy of the application 
to the Rural Development State Office in the State in which the 
applicant's principal office is located. Applicants must submit 
complete applications, consisting of the following elements, in order 
to be considered:
    (1) Form SF-424, Application for Federal Assistance;
    (2) Form SF-424A, Budget Information--Non-Construction Programs;
    (3) Form SF-424B, Assurances--Non-Construction Programs;
    (4) If an entity, copies of applicant's organizational documents 
showing the applicant's legal existence and authority to perform the 
activities under the grant;
    (5) A proposed scope of work, including a description of the 
proposed project, details of the proposed activities to be accomplished 
and timeframes for completion of each task, the number of months 
duration of the project, and the estimated time it will take from grant 
approval to beginning of project implementation. A written narrative to 
be used as the scope of work which includes, at a minimum, the 
following items:
    (i) An Executive Summary;
    (ii) The plan and schedule for implementation;
    (iii) The anticipated number of agricultural producers and/or rural 
small businesses to be served;
    (iv) An itemized budget--compute total cost per rural small 
business or agricultural producer served--matching funds should be 
clearly identified as cash;
    (v) The geographic scope of the proposed project;
    (vi) Applicant experience as follows:
    (A) If applying for a Renewable Energy Development Assistance 
grant, the applicant's experience in completing similar renewable 
energy development assistance activities, including the number of 
similar projects the applicant has performed and the number of years 
the applicant has been performing a similar service;
    (B) If applying for an Energy Audit grant, the number of energy 
audits and

[[Page 29712]]

assessments the applicant has completed and the number of years the 
applicant has been performing those services; and
    (C) For all applicants, the amount of experience in administering 
energy audit, renewable energy development assistance, or similar 
activities using State or Federal support;
    (vii) Applicant's resources, including personnel, finances, and 
technology, to complete what is proposed. If submitting in multiple 
states, resources must be sufficient to complete all projects;
    (viii) Leveraging and commitment of other sources of funding being 
brought to the project (in addition to the required 25 percent 
contribution from the agricultural producer or rural small business for 
the cost of an energy audit). Leveraged funds should be clearly 
identified as cash and by source. Written documentation/confirmation 
from the party committing a specific amount of leveraged funds is 
required;
    (ix) Outreach activities/marketing efforts specific to conducting 
energy audit and renewable energy development assistance including:
    (A) Project title;
    (B) Goals of the project;
    (C) Identified need;
    (D) Target audience;
    (E) Timeline and type of activities/action plan; and
    (F) Marketing strategies;
    (x) Method and rationale used to select the areas and businesses 
that will receive the service;
    (xi) Brief description of how the work will be performed, including 
whether organizational staff, consultants, or contractors will be used;
    (6) The most recent financial audit (not more than 18 months old) 
of the entity, or subdivision thereof, that will be performing the 
proposed work. If such an audit is not available, the latest financial 
information that shows the financial capacity of the entity, or 
subdivision thereof, to perform the proposed work. Such information may 
include, but is not limited to, the most recent year-end balance sheet, 
income statement, and other appropriate data that identify the entity's 
resources;
    (7) A Dunn and Bradstreet Data Universal Numbering System (DUNS) 
number; and
    (8) Intergovernmental review comments from the State Single Point 
of Contact, or evidence that the State has elected not to review the 
project under Executive Order 12372.

C. Submission Dates, Times, and Addresses

    Complete applications must be received in the appropriate USDA 
Rural Development State Office no later than 4:30 p.m. local time July 
26, 2010 to be considered for funding in FY 2010. Neither incomplete 
applications nor complete applications received after this date and 
time will be considered, regardless of the postmark on the application.
    Applicants may submit their applications either to the Rural 
Development Energy Coordinator in the State in which the applicant's 
principal office is located or via http://www.grants.gov. A list of 
Rural Development Energy Coordinators is provided in the Addresses 
section of this Notice.

D. Intergovernmental Review

    The Rural Energy for America Program is subject to the provisions 
of the Executive Order 12372, which requires intergovernmental 
consultation with State and local officials.

E. Funding limitations

    Grant funds awarded for energy audit and renewable energy 
development assistance projects may be used only to pay eligible 
project costs, as described in paragraph (1) below. Grant funds awarded 
for energy audits and renewable energy development assistance projects 
are prohibited from being used to pay costs associated with the items 
listed in paragraph (2) below.
    (1) Eligible project costs. Eligible project costs are those post-
application expenses directly related to conducting and promoting 
energy audits and renewable energy development assistance, which 
include but are not limited to:
    (i) Salaries directly or indirectly related to the project;
    (ii) Travel expenses directly related to conducting energy audits 
or renewable energy development assistance;
    (iii) Office supplies (e.g., paper, pens, file folders); and
    (iv) Administrative expenses, up to a maximum of 5 percent of the 
grant, which include but are not limited to:
    (A) Utilities;
    (B) Office space;
    (C) Operation expenses of office and other project-related 
equipment (e.g., computers, cameras, printers, copiers, scanners); and
    (D) Expenses for outreach and marketing of the energy audit and 
renewable energy development assistance activities, including 
associated travel expenses.
    (2) Ineligible grant purposes. Grant funds may not be used to:
    (i) Pay for any construction-related activities;
    (ii) Purchase equipment;
    (iii) Pay any costs of preparing the application package for 
funding under this Notice;
    (iv) Pay any costs of the project incurred prior to the application 
date of the grant made under this Notice;
    (v) Fund political or lobbying activities;
    (vi) Pay for assistance to any private business enterprise which 
does not meet the requirements of paragraph III.A(2) of this Notice; 
and
    (vii) Pay any judgment or debt owed to the United States.
    (3) Funding limitations. The following funding limitations apply.
    (i) Maximum grant amount. The maximum aggregate amount of grants 
awarded to any one recipient under this Notice cannot exceed $100,000.
    (ii) Energy audits. A recipient of a grant under this Notice that 
conducts an energy audit shall require that, as a condition of the 
energy audit, the agricultural producer or rural small business pay at 
least 25 percent of the cost of the energy audit. Further, the amount 
paid by the agricultural producer or rural small business will be 
retained by the recipient as a contribution towards the cost of the 
energy audit.

V. Grant Provisions

    This section identifies the process and procedures the Agency will 
use to process and select applications, award grants, and administer 
grants.

A. Processing and Scoring Applications

    (1) Application review. Upon receipt of an application, the Agency 
will conduct a review to determine if the applicant and project are 
eligible. The Agency will notify the applicant in writing of the 
Agency's findings. If the Agency has determined that either the 
applicant or project is ineligible, it will include in the notification 
the reason(s) for its determination(s).
    (2) Incomplete applications. Incomplete applications will be 
rejected. Applicants will be informed of the elements that made the 
application incomplete. If a resubmitted application is received by the 
applicable application deadline, the Agency will reconsider the 
application.
    (3) Subsequent ineligibility determinations. If at any time an 
application is determined to be ineligible, the Agency will notify the 
applicant in writing of its determination, and processing of the 
application will cease.
    (4) Application withdrawal. During the period between the 
submission of an application and the execution of documents, the 
applicant must notify

[[Page 29713]]

the Agency, in writing, if the project is no longer viable or the 
applicant no longer is requesting financial assistance for the project. 
When the applicant so notifies the Agency, the selection will be 
rescinded or the application withdrawn.
    (5) Application deadline. Each complete and eligible application 
received by the applicable Rural Development State office by 4:30 p.m. 
local time July 26, 2010 will be scored. Any application received by 
the applicable Rural Development State office after 4:30 p.m. local 
time will not be considered.
    (6) Scoring. The Agency will score each application using the 
following criteria, with a maximum score of 100 points possible.
    (i) Project proposal (maximum score of 10 points). The applicant 
will be scored based on its in-house ability to conduct audits versus 
using third party auditing organizations as illustrated in the 
application.
    (A) If the applicant proposes to use at least 51 percent of the 
awarded funding to employ internal, qualified auditors and/or renewable 
energy specialists for program implementation, up to 10 points will be 
awarded as follows:
    (1) If the percentage is between 51 percent and 75 percent, 5 
points will be awarded.
    (2) If the percentage is more than 75 percent, 10 points will be 
awarded.
    (B) If the applicant proposes to use less than 51 percent of the 
awarded funding to employ internal, qualified auditors and/or renewable 
energy specialists for program implementation, zero points will be 
awarded.
    (ii) Use of Grant Funds for Administrative Expenses (maximum score 
of 10 points). Grantees selected to participate may use up to 5 percent 
of their award for administrative expenses.
    (A) If the applicant proposes to use none of the grant funds for 
Administrative Expenses, 10 points will be awarded.
    (B) If the applicant proposes to use a portion (up to 5 percent) of 
the grant funds for Administrative Expenses, zero points will be 
awarded.
    (iii) Applicant's organizational experience in completing proposed 
activity (maximum score of 15 points). The applicant will be scored on 
the experience of the organization in meeting the benchmarks below. 
This means that an organization must have been in business and provided 
services as noted in the scoring requirements. An organization's 
experience must be documented with references and resumes. Points will 
be awarded as follows:
    (A) More than 3 years of experience, 15 points will be awarded.
    (B) At least 2 years and up to and including 3 years of experience, 
10 points will be awarded.
    (C) At least 1 year but less than 2 years of experience, 5 points 
will be awarded.
    (D) Less than 1 year of experience, zero points will be awarded.
    (iv) Geographic scope of project in relation to identified need 
(maximum score of 10 points).
    (A) If the applicant's proposed or existing rural service area is 
State-wide or includes all or parts of multiple states, and the 
marketing and outreach plan has identified needs throughout that 
service area, 10 points will be awarded.
    (B) If the applicant's proposed or existing rural service area 
consists of multiple counties in a single State and the marketing and 
outreach plan has identified needs throughout that service area, 7.5 
points will be awarded.
    (C) If the applicant's rural service area consists of a single 
county or municipality and the marketing and outreach plan has 
identified needs throughout that service area, 5 points will be 
awarded.
    (v) Number of agricultural producers/rural small businesses to be 
served (maximum score of 15 points).
    (A) If the applicant plans to provide audits to ultimate recipients 
with average audit costs of $1,000 or less, 15 points will be awarded.
    (B) If the applicant plans to provide audits to ultimate recipients 
with average audit costs over $1,000 but less than $1,500, 10 points 
will be awarded.
    (C) If the applicant plans to provide audits to ultimate recipients 
with average audit costs of at least $1,500 but less than $2,000, 5 
points will be awarded.
    (vi) Potential of project to produce energy savings and its 
attending environmental benefits (maximum score of 25 points). 
Applicants can be awarded points under both paragraphs (vi)(A) and (B).
    (A) If the applicant has an existing program that can demonstrate 
the achievement of energy savings with the agricultural producers and/
or rural small businesses it has served, 13 points will be awarded.
    (B) If the applicant provides evidence that it has received awards 
in recognition of its renewable energy, energy savings, or energy-based 
technical assistance, up to 12 points will be awarded based on number 
of awards and rigorousness of the competition for each award.
    (vii) Marketing and outreach plan (maximum score of 10 points). If 
the applicant includes in the application a marketing and outreach plan 
and provides a satisfactory discussion of each of the following 
criteria, two points for each of the following will be awarded:
    (A) The goals of the project;
    (B) Identified need;
    (C) Target beneficiaries;
    (D) Timeline and action plan; and
    (E) Marketing strategies and supporting data for strategies.
    (viii) Level and commitment of other funds for the project (not 
including the 25 percent required contribution from ultimate recipients 
for the cost of an energy audit) (maximum score of 5 points).
    (A) If the applicant proposes to leverage grant funding with 50 
percent or more in non-State and non-federal government matching funds 
for the subject grant, and has a written commitment for those funds, 5 
points will be awarded.
    (B) If the applicant proposes to leverage grant funding with less 
than 50 percent but more than 20 percent in non-State and non-federal 
government matching funds for the subject grant, and has a written 
commitment for those funds, 2 points will be awarded.
    (C) If the applicant proposes less than 20 percent in non-State and 
non-federal government matching funds, zero points will be awarded.

B. Award Process

    Applications will be scored by the State Offices and submitted to 
the National Office for review.
    (1) Submission to National Office. To ensure the equitable 
geographic distribution of funds, the two highest scoring applications 
from each State, based on the scoring criteria established under 
paragraph V.A(6), will be submitted to National Office to compete for 
funding.
    (2) Ranking of applications. All applications submitted to the 
National Office will be ranked. All applications that are ranked will 
be considered for selection for funding.
    (3) Selection of applications for funding.
    (i) Using the ranking created under paragraph B(2) of this section, 
the Agency will consider the score an application has received compared 
to the scores of other ranked applications, with higher scoring 
applications receiving first consideration for funding.
    (ii) If after the majority of applications have been funded, 
insufficient funds remain to fund the next highest scoring application, 
the Agency may elect to

[[Page 29714]]

fund a lower scoring application. Before this occurs, the 
Administrator, as applicable, 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 Administrator must determine the project is 
financially feasible at the lower amount.
    (iii) The Agency will notify, in writing, applicants whose 
applications have been selected for funding.
    (4) 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.
    (5) 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. The Agency, 
in its sole discretion, may extend the 90-day period if it appears 
resolution is imminent.

C. Actions Prior To Grant Closing

    (1) Changes in project cost or scope. If there is a significant 
reduction in project cost or changes in project scope, then 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.
    (2) Evidence of and disbursement of other funds. Applicants 
expecting funds from other sources for use in completing projects being 
partially financed with Agency funds must have these funds from other 
such sources prior to grant closing. Agency funds will not be expended 
in advance of funds committed to the project from other sources without 
prior Agency approval.

D. Letter of Conditions and Grant Agreement

    (1) 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 
authorized purposes, and that the applicable requirements prescribed in 
the relevant Departmental regulations are complied with. The Letter of 
Conditions will be sent to the applicant.
    (2) Applicant's intent to meet conditions. Upon reviewing the 
conditions and requirements in the letter of conditions, the applicant 
must complete, sign, and return 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.
    (3) Grant agreement, forms, and certifications. Prior to grant 
approval, the applicant must complete, sign, and return a grant 
agreement (published at the end of this Notice). In addition, the 
following forms, which will be attached to the letter of conditions 
referenced in paragraph V.D(1) of this Notice, and certifications must 
be submitted prior to grant approval:
    (A) Form RD 1942-46;
    (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 that 
the applicant does 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.''
    (4) Grant approval. Form RD 1940-1 must be signed by the applicant.
    (i) The applicant will be sent a copy of the executed Form RD 1940-
1, the approved scope of work, and a grant agreement (published at the 
end of this Notice). The grant will be considered closed on the 
obligation date.
    (ii) 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 these requirements may result in 
termination of the grant and adoption of other available remedies.

E. Fund Disbursement

    The Agency will determine, based on the applicable Departmental 
regulations, whether disbursement of a grant will be by advance or 
reimbursement. A SF-270, ``Request for Advance or Reimbursement,'' must 
be completed by the grantee and submitted to the Agency no more often 
than monthly to request either advance or reimbursement of funds. Upon 
receipt of a properly completed SF-270, the funds will be requested 
through the field office terminal system. Ordinarily, payment will be 
made within 30 days after receipt of a proper request for advance or 
reimbursement.

F. Use of Remaining Funds

    Funds remaining after all costs incident to the basic project have 
been paid or provided for are to be handled as specified in this 
section.
    (1) Remaining funds are not to include grantee contributions.
    (2) Remaining funds may be used based on prior approval by the 
Agency for eligible grant purposes, provided:
    (i) the use will not result in major changes to the project;
    (ii) the purpose of the grant remains the same; and
    (iii) the project remains within its original scope.
    (3) Grant funds not expended within 24 months from date of the 
grant agreement will be cancelled by the Agency. Prior to the actual 
cancellation, the Agency will notify the grantee, in writing, of the 
Agency's intent to cancel the remaining funds.

G. Monitoring and Reporting Project Performance

    (1) Monitoring of projects. Grantees are responsible for ensuring 
that 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 are appropriately expended by contractors (if applicable), 
and any other performance objectives identified in the scope of work 
are being achieved. To the extent that 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

[[Page 29715]]

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.
    (2) Federal financial reports. A SF-425, ``Federal Financial 
Report,'' and a project performance 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.
    (3) Performance reports. Grantees must submit to the Agency, in 
writing, semiannual performance reports and a final performance report, 
once all project activities are completed. Grantees are to submit an 
original of each report to the Agency.
    (i) Semiannual performance reports. Project performance reports 
shall include, but not be limited to, the following:
    (A) A comparison of actual accomplishments to the objectives 
established for that period (e.g., the number of audits performed, 
number of recipients of renewable energy development assistance);
    (B) A list of recipients, each recipient's location, and each 
recipient's North American Industry Classification System code;
    (C) Problems, delays, or adverse conditions, if any, that have in 
the past or will in the future affect attainment of overall project 
objectives, prevent meeting time schedules or objectives, or preclude 
the attainment of particular project work elements during established 
time periods. This disclosure shall be accompanied by a statement of 
the action taken or planned to resolve the situation;
    (D) Percentage of financial resources expended on contractors; and
    (E) Objectives and timetable established for the next reporting 
period.
    (ii) Final performance report. A final performance report will be 
required with the final Federal Financial Report within 90 days after 
project completion. In addition to the information required under 
paragraph (3)(i) above, the final performance report must contain the 
information specified in paragraphs (3)(ii)(A) and (3)(ii)(B) below, as 
applicable, of this section.
    (A) For energy audit projects, the final performance report must 
provide complete information regarding:
    (1) the number of audits conducted,
    (2) a list of recipients (agricultural producers and rural small 
businesses) with each recipient's North American Industry 
Classification System code,
    (3) the location of each recipient,
    (4) the cost of each audit,
    (5) the expected energy saved for each audit conducted if the audit 
is implemented, and
    (6) the percentage of financial resources expended on contractors.
    (B) For renewable energy development assistance projects, the final 
performance report must provide complete information regarding:
    (1) a list of recipients with each recipient's North American 
Industry Classification System code,
    (2) the location of each recipient,
    (3) the expected renewable energy that would be generated if the 
projects were implemented, and
    (4) the percentage of financial resources expended on contractors.
    (4) Final status report. One year after submittal of the final 
semiannual performance report, the Grantee will provide the Agency a 
final status report on the number of projects that are proceeding with 
one or all of the Grantee's recommendations, including the amount of 
energy saved and the amount of renewable energy generated, as 
applicable.
    (5) Other reports. The Agency may request any additional project 
and/or performance data for the project for which grant funds have been 
received.

H. Financial Management System and Records

    (1) The grantee will provide for Financial Management Systems that 
will include:
    (i) Accurate, current, and complete disclosure of the financial 
result of each grant.
    (ii) Records that identify adequately the source and application of 
funds for grant-supporting activities, together with documentation to 
support the records. Those records shall contain information pertaining 
to grant awards and authorizations, obligations, unobligated balances, 
assets, liabilities, outlays, and income.
    (iii) Effective control over and accountability for all funds. 
Grantee shall adequately safeguard all such assets and shall ensure 
that funds are used solely for authorized purposes.
    (2) The 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 records shall be retained beyond the 3-year 
period if audit findings have not been resolved or if directed by the 
United States. Microfilm copies may be substituted in lieu of original 
records. The Agency 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 specific grant for the purpose of making audit, 
examination, excerpts, and transcripts.

I. Audit Requirements

    Grantees must provide an annual audit in accordance with 7 CFR part 
3052.

J. 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 operations by a representative of the Agency.

K. 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.

L. Transfer of Obligations

    Subject to Agency approval, an obligation of funds established for 
a grantee may be transferred to a different (substituted) grantee 
provided:
    (1) The substituted grantee
    (i) is eligible;
    (ii) has a close and genuine relationship with the original 
grantee; and
    (iii) has the authority to receive the assistance approved for the 
original grantee; and
    (2) The need, purpose(s), and scope of the project for which the 
Agency funds will be used remain substantially unchanged.

M. Grant Close out and Related Activities

    In addition to the requirements specified in the Departmental 
regulations, failure to submit satisfactory reports on time under the 
provisions of Section V.G., Monitoring and Reporting Project 
Performance, may result in the suspension or termination of a grant. 
The provisions of this section apply to grants and sub-grants.

[[Page 29716]]

VI. Administration Information

A. Notice of 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 review and appeal rights as 
specified in this Section.

B. Administrative and National Policy Requirements

    (1) Review and appeal rights. A person may seek a review of an 
Agency decision under this Notice from the appropriate Agency official 
that oversees the program in question and appeal to the National 
Appeals Division in accordance with 7 CFR part 11.
    (2) Notification of unfavorable decisions. If at any time prior to 
grant approval it is decided that favorable action will not be taken on 
an application, the State Director 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 of its rights to an 
informal review, mediation, and appeal of the decision in accordance 
with 7 CFR part 11.

C. Exception Authority

    Except as specified in paragraphs (1) through (3) below, the 
Administrator may make exceptions to any requirement or provision of 
this Notice, if such exception is in the best 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. Environmental Review

    All grants made under this subpart are subject to the requirements 
of 7 CFR part 1940, subpart G. Applications for financial assistance 
for planning purposes or management and feasibility studies are 
categorically excluded from the environmental review process by 7 CFR 
1940.310(e)(1).

F. Other USDA Regulations

    Energy audit and renewable energy development assistance projects 
funded under this Notice are subject to the provisions of the 
Departmental regulations, as applicable, which are incorporated by 
reference herein.

VII. Agency Contacts

    Notice Contact. For information about this Notice, please contact 
the Energy Branch, USDA Rural Development, STOP 3225, Room 6870, 1400 
Independence Avenue, SW., Washington, DC 20250-3225. Telephone: (202) 
720-1400.
    For assistance on energy audit and renewable energy development 
assistance grants, please contact the applicable Rural Development 
Energy Coordinator, as provided in the Addresses section of this 
Notice.

VIII. Non-Discrimination 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 and employer.''

IX. Civil Rights Compliance Requirements

    All grants made under this Notice are subject to title VI of the 
Civil Rights Act of 1964, 7 CFR part 1901, subpart E, and Section 504 
of the Rehabilitation Act of 1973.

    Dated: May 19, 2010.
Judith A. Canales,
Administrator, Rural Business-Cooperative Service.

Energy Audit and Renewable Energy Development Assistance Grant 
Agreement

    This Grant Agreement (Agreement) is a contract for receipt of 
grant funds of $------------, 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 --------------------
(Grantee) and the United States of America acting through Rural 
Development, Department of Agriculture (Grantor). All references 
herein to ``Project'' refer to an energy audit project and/or 
renewable energy development assistance project identified in the 
scope of work submitted with the application. Should actual project 
costs be lower than projected in the scope of work, the final amount 
of the grant may be adjusted.

A. Assurance Agreement

    Grantee assures 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 through 3019, 7 CFR 
part 3021, and 7 CFR part 3052, and successor regulations to these 
parts, which are incorporated into this agreement by reference, any 
applicable Notices published in the Federal Register, and such other 
statutory provisions as are specifically contained herein.
    Grantee and Grantor agree to all of the terms and provisions of 
any policy or regulations promulgated under Title IX, Section 9001 
of the Food, Conservation, and Energy Act of 2008. Any application 
submitted by 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 Grantor.
    Grantor may suspend and/or terminate the grant in whole, or in 
part, at any time before the date of completion, whenever it is 
determined that Grantee has failed to comply with the conditions of 
this Agreement.

B. Use of Grant Funds

    Grantee will use grant funds and leveraged funds only for the 
purposes and tasks included in the application and budget approved 
by Grantor. The approved Budget and approved use of funds are 
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 Grantor.

C. 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, and national origin of Grantee's 
membership/ownership and employees. These data must be available to 
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.

[[Page 29717]]

D. Financial Management Systems

    1. Grantee will provide a Financial Management System in 
accordance with Departmental regulations 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, including but not limited to:
    (i) 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;
    (ii) 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;
    (iii) Accounting records prepared in accordance with generally 
accepted accounting principles (GAAP) and supported by source 
documentation; and
    (iv) Grantee tracking of fund usage and records that show 
matching funds and grant funds are used proportionally. Grantee will 
provide verifiable documentation regarding matching funds usage, 
i.e., bank statements or copies of funding obligations from the 
matching source.
    2. 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 records shall be retained beyond the 3-
year period if audit findings have not been resolved or if directed 
by the United States. 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 
Grantee which are pertinent to the grant for the purpose of making 
audits, examinations, excerpts, and transcripts.

E. 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.

F. Reporting

    1. Grantee will after grant approval through project completion:
    (i) Provide periodic reports as required by Grantor. A federal 
financial report and a project performance report will be required 
on a semiannual basis (due 30 working days after end of the 
semiannual period). For the purposes of this grant, semiannual 
periods end on June 30 and December 31. The federal financial report 
must show how grant funds and leveraged funds have been used to date 
and project the funds needed and their purposes for the next 
quarter. Grantee shall constantly monitor performance to ensure that 
time schedules are being met and projected goals by time periods are 
being accomplished. The project performance reports shall include 
the following:
    (A) Semiannual performance reports. Project performance reports 
shall include, but not be limited to, the following:
    (1) A comparison of actual accomplishments to the objectives 
established for that period (e.g., the number of audits performed, 
number of recipients of renewable energy development assistance);
    (2) A list of recipients, each recipient's location, and each 
recipient's North American Industry Classification System code;
    (3) Problems, delays, or adverse conditions, if any, which have 
affected or will affect attainment of overall project objectives, 
prevent meeting time schedules or objectives, or preclude the 
attainment of particular project work elements during established 
time periods. This disclosure shall be accompanied by a statement of 
the action taken or planned to resolve the situation;
    (4) Percentage of financial resources expended on contractors; 
and
    (5) Objectives and timetable established for the next reporting 
period.
    (B) Final performance report. A final performance report will be 
required with the final federal financial Report.
    (1) For energy audit projects, the final performance report must 
provide the information required in a semiannual performance report; 
complete information regarding the number of audits conducted; a 
list of recipients with each recipient's North American Industry 
Classification System code; the location of each recipient; the cost 
of each audit; the expected energy saved for each audit conducted if 
the audit is implemented; the number of jobs created and saved for 
an agricultural producer or rural small business, as applicable, as 
a result of the grant; and the percentage of financial resources 
expended on contractors.
    (2) For renewable energy development assistance projects, the 
final performance report must provide the information required in a 
semiannual performance report; a list of recipients with each 
recipient's North American Industry Classification System code; the 
location of each recipient; the expected renewable energy that would 
be generated if the projects were implemented; and the percentage of 
financial resources expended on contractors.
    (ii) For the year(s) in which grant funds are received, Grantee 
will provide an annual financial statement to Grantor.
    2. Grantee will, after project completion:
    (i) Allow Grantor access to the records and performance 
information obtained under the scope of the project; and
    (ii) One year after submittal of the final semiannual 
performance report, Grantee will provide Grantor a final status 
report on the number of projects that are proceeding with one or all 
of Grantee's recommendations, including the amount of energy saved 
and the amount of renewable energy generated, as applicable.

G. Grant Disbursement

    Unless required by funding partners to be provided on a pro rata 
basis with other funding sources, grant funds will be disbursed 
after all other funding sources have been expended.
    1. Requests for reimbursement may be submitted monthly or more 
frequently if authorized to do so by Grantor. Ordinarily, payment 
will be made within 30 days after receipt of a proper request for 
reimbursement.
    2. 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.
    3. Payment shall be made by electronic funds transfer.
    4. Standard Form 270, ``Request for Advance or Reimbursement,'' 
or other format prescribed by Grantor shall be used to request Grant 
reimbursements.

H. Use of Remaining Grant Funds

    Grant funds not expended within 24 months from date of this 
agreement will be cancelled by Grantor. Prior to the actual 
cancellation, Grantor will notify Grantee, in writing, of Grantor'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 officer(s), and 
Grantor has caused this Agreement to be duly executed in its behalf 
by

GRANTOR:
[SEAL]-----------------------------------------------------------------
Name:
Title:
UNITED STATES OF AMERICA DEPARTMENT OF AGRICULTURE RURAL DEVELOPMENT
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Date
GRANTEE:
[SEAL]-----------------------------------------------------------------
Name:
Title:
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Date

[FR Doc. 2010-12583 Filed 5-26-10; 8:45 am]
BILLING CODE 3410-XY-P