[Federal Register Volume 75, Number 151 (Friday, August 6, 2010)]
[Notices]
[Pages 47525-47535]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-19335]


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DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service


Notice of Funding Availability (NOFA) for Renewable Energy 
Feasibility Studies Grants 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 $3,000,000 for 
fiscal year (FY) 2010 to conduct feasibility studies for renewable 
energy systems for agriculture producers and rural small businesses. 
This funding will be available in the form of grants. Funds that are 
not awarded under this notice will be made available for the Rural 
Energy for America Program in FY 2011.
    Lastly, the Agency intends to publish a proposed rule that will 
revise the current program 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: Complete applications under this Notice must be received by the 
appropriate USDA Rural Development

[[Page 47526]]

State Office no later than 4:30 local time October 5, 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 (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 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. (770) 267-1413 ext. 113. 
[email protected].

Guam (See Hawaii)

Hawaii/Guam/Republic of Palau/Federated States of Micronesia/Republic 
of the Marshall Islands/America 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, 5975 Lakeside Boulevard, 
Indianapolis, IN 46278. (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) 271-2730. 
[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, 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].

[[Page 47527]]

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 USDA Rural Development--Energy Division, Program 
Branch, STOP 3225, Room 6870, 1400 Independence Avenue, SW., 
Washington, DC 20250-3225. Telephone: (202) 720-1400.
    For program assistance, please contact the applicable Rural 
Development 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, the 
information collection requirements associated with renewable energy 
feasibility study grants, as covered in this REAP notice, has been 
approved by the Office of Management and Budget (OMB) under OMB Control 
Number 0570-0061.
    The information collection requirements associated with renewable 
energy system and energy efficiency improvement grants and guaranteed 
loans and with energy audits and renewable energy development 
assistance 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 0570-0059, 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. 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 October 5, 2010, 
in order to be considered for funding in FY 2010. Applications received 
after 4:30 p.m. local time October 5, 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/REAPFEAS.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), 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 help agricultural 
producers and rural small businesses complete feasibility studies for 
projects that will help meet the Nation's critical energy needs. The 
grant request may not exceed 25 percent of eligible project costs or 
$50,000, whichever is less.
    B. Statutory Authority. This activity (feasibility study) is 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 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

[[Page 47528]]

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 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.
    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.
    Ocean energy. Energy created by use of various types of moving 
water including, but not limited to, tidal, wave, current, and thermal 
changes.
    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 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.
    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 grant funds available for 
renewable energy system feasibility studies in FY 2010 is $3,000,000.
    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. 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 this REAP notice and 
the renewable energy system and energy efficiency improvements REAP 
notice.
    B. Number of awards. The number of awards will depend on the number 
of eligible applicants participating in the feasibility study grant 
portion of the Rural Energy for America 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 2010 based on the total amount of renewable 
energy system, energy efficiency improvement, and renewable energy 
system feasibility study grants awarded to that individual or entity 
under the Rural Energy for America Program. The Agency will not use 
more than 10 percent of funds for grants to conduct renewable energy 
system feasibility studies.
    D. Types of Instrument. Grant.

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. Applications must be from the prospective 
owner(s) of the renewable energy system for which the feasibility study 
grant is sought. Applications from other entities (e.g., entities that 
would be conducting the feasibility study and are not owners) will not 
be accepted. Finally, 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 Energy Coordinators, as provided in the ADDRESSES section 
of this Notice. In addition, 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 October 5, 2010. 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

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

D. How To Submit

    Applications may be submitted either as hard copy to the 
appropriate Rural Development Energy Coordinator or

[[Page 47529]]

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.

E. Other Submission Requirements and Information

    (1) 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.
    (2) Original signatures. USDA Rural Development may request that 
the applicant provide original signatures on forms submitted through 
Grants.gov at a later date.
    (3) 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.

IV. Program Provisions

    This section of the Notice identifies the procedures the Agency 
will use to process and select feasibility study applications, award 
grants, and administer such financial assistance.

A. Eligibility

    Applicants and their applications 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 Notice.
    (1) Applicant eligibility. 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 7 CFR 4280.103,
    (ii) Meet the eligibility criteria of 7 CFR 4280.107; and
    (iii) Be the prospective owner of the renewable energy system for 
which the feasibility study grant is sought.
    (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 as identified in 7 CFR 4280.108(d); 
and
    (iii) Is for technology that is pre-commercial or commercially 
available, and that is replicable.

B. 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 IV(K) 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 
Departmental Regulations.

C. Project Costs

    (1) Eligible project costs will be considered by the Agency when 
determining the amount of the grant and include:
    (i) Those costs incurred after the application submittal date; and
    (ii) Specific to the development of the feasibility study, (refer 
to Appendix A for further information on the content of a feasibility 
study) including, but not limited to:
    (A) Resource assessment;
    (B) Transmission study; and
    (C) Environmental study.
    (2) Ineligible grant purposes include:
    (i) Costs associated with selection of engineering, architectural, 
or environmental services;
    (ii) Designing, bidding, or contract development for the proposed 
facility;
    (iii) Permitting and other licensing costs required to construct 
the facility;
    (iv) Conducting industry-level feasibility studies also known as 
feasibility study templates or guides because the assistance is not 
provided to a specific project; and
    (v) Pay for any goods or services provided by a person or entity 
who has a conflict of interest as described in 7 CFR 4280.106.

D. Application Restrictions

    Feasibility study applications:
    (1) Can apply for only one renewable energy system feasibility 
study project under this Notice;
    (2) Have completed the environmental review process according to 7 
CFR 4280.114(d);
    (3) Which are complete will be eligible for funding consideration;
    (4) Can be submitted for a modification to an existing renewable 
energy system (e.g., for the expansion portion of an existing wind 
farm);
    (5) 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; and
    (6) Cannot be submitted in FY 2010 for a RES project if an RES 
application for the same renewable energy system is submitted in FY 
2010 and vice versa.

E. 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:
    (1) Form SF-424, ``Application for Federal Assistance;''
    (2) Form SF-424C, ``Budget Information--Construction Programs;''
    (3) Form SF-424D, ``Assurances--Construction Programs;''
    (4) Form RD 1940-20, ``Request for Environmental Information'' (if 
applicable);
    (5) If an entity, one copy of the applicant's organizational 
documents; and
    (6) A proposed work plan, which includes:
    (i) A brief description of the proposed system the feasibility 
study will evaluate;
    (ii) A description of the feasibility study to be conducted. An 
acceptable feasibility study is outlined in Appendix A 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;
    (iii) The timeframe for completion of the feasibility study;
    (vi) 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;
    (v) 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; and

[[Page 47530]]

    (vi) 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:
    (A) If the applicant is a rural small businesses, 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 the Small Business Administration; and
    (B) 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;
    (7) 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;
    (8) A certification that the applicant has not received any other 
Federal or State assistance for the same RES project that is the 
subject of the application; and
    (9) A certification that the applicant has not received any other 
Federal or State assistance for a feasibility study for the subject 
renewable energy system.

F. Evaluation of Applications

    Feasibility study applications submitted under this Notice will be 
evaluated by the applicable Energy Coordinator for eligibility, 
completeness, and scoring.
    (1) 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.
    (i) 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.
    (ii) 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.
    (2) 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.
    (3) 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 by the appropriate 
USDA Rural Development State Office no later than 4:30 local time 
October 5, 2010.

G. Scoring Applications

    The Agency will assign a score to each eligible application as 
follows:
    (1) 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.
    (i) Energy replacement. 25 points will be awarded if proposed 
project will offset a portion or all of the applicant's energy needs.
    (ii) Energy generation. 15 points will be awarded if the proposed 
renewable energy system is intended primarily for production of energy 
for sale.
    (2) 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 of funds. 
A maximum of 10 points can be awarded under this section.
    (i) 10 points--100 percent of matching funds.
    (ii) 7.5 points--75 percent up to, but not including 100 percent of 
matching funds.
    (iii) 5 points--50 percent up to, but not including 75 percent of 
matching funds.
    (iv) 0 points--less than 50 percent of matching funds.
    (3) 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 (3)(i) or 
(3)(ii). A maximum of 20 points can be awarded under this section.
    (i) For an Agricultural Producer:
    (A) 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
    (B) 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.
    (ii) For a Rural Small Business, 20 points will be awarded if the 
applicant is a very small business, as defined in 7 CFR 4280.103.
    (4) Experience and qualifications of the entity identified to 
perform the feasibility study. A maximum of 15 points can be awarded 
under this section.
    (i) 15 points will be awarded if the entity has 5 or more years 
experience in the field of study for the technology being proposed.
    (ii) 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.
    (iii) 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.
    (5) Size of feasibility study grant request. A maximum of 20 points 
can be awarded under this section.
    (i) 20 points will be awarded if the feasibility study request is 
$10,000 or less.
    (ii) 10 points will be awarded if the feasibility study request is 
more than $10,000 up to $25,000.
    (iii) 0 points will be awarded if the feasibility study request is 
greater than $25,000.
    (6) 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.
    (i) 5 points will be awarded if the applicant has identified local 
programs.
    (ii) 5 points will be awarded if the applicant has identified State 
programs.

H. Award Process

    The Agency will use the following process to determine which grants 
receive funding under this Notice.

[[Page 47531]]

    (1) 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.
    (2) 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.
    (3) 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.

I. Actions Prior to Grant Closing

    (1) 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.  
1940.310 of this title.
    (2) 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 and Notices used at the time of grant approval, will 
remain the same. Obligated grant funds not needed to complete the 
project will be de-obligated.
    (3) Evidence of other funds. Applicants expecting funds from other 
sources for use in completing projects being partially financed with 
Agency funds shall present evidence of the commitment of these funds 
from such other sources prior to disbursement of grant funds.

J. Approval Process

    (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 the 
feasibility study, 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) 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.
    (3) Grant agreement, forms, and certifications. Prior to grant 
disbursement, but after grant obligation, the applicant must complete, 
sign, and return a Grant Agreement, which is attached to this Notice as 
Appendix B. In addition, the following forms and certifications must be 
submitted prior to grant approval:
    (i) Certification that the feasibility study grant will be for a 
renewable energy system project that is located in a rural area;
    (ii) Form AD-1047, ``Certification Regarding Debarment, Suspension, 
and Other Responsibility Matters--Primary Covered Transactions;''
    (iii) 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;
    (iv) Form AD-1049, ``Certification Regarding Drug-Free Workplace 
Requirements (Grants) Alternative I--For Grantees Other Than 
Individuals;''
    (v) Form SF-LLL, ``Disclosure Form to Report Lobbying'' or Exhibit 
A-1 of RD Instruction 1940-Q, ``Certification for Contracts, Grants, 
and Loans;'' and
    (vi) 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 (see Appendix B to 
this Notice).
    (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 the requirements may result in 
termination of the grant and adoption of other available remedies.

K. Fund Disbursement

    Grant funds will be expended on a pro rata basis with matching 
funds.
    (1) 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.
    (2) 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.
    (3) Payment shall be made by electronic funds transfer.
    (4) Standard Form 270, ``Request for Advance or Reimbursement,'' or 
other format prescribed by the Agency shall be used to request grant 
reimbursements.
    (5) 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.

L. Deobligation of Grant Funds

    Funds remaining after all costs incident to the project have been 
paid or provided for are subject to deobligation.

M. Monitoring and Reporting Project Performance

    (1) 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

[[Page 47532]]

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.
    (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 the Grantee and approved by the Agency. The final 
Federal financial report must be submitted to the Agency within 90 days 
after the feasibility study has been completed.
    (3) 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.
    (i) 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 2 years. This 
disclosure shall be accompanied by a statement of the action taken or 
planned to resolve the situation.
    (ii) 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.
    (4) Final deliverables. Upon completion of the feasibility study, 
the Grantee shall submit the following to the Agency:
    (i) The project feasibility study; and
    (ii) SF-270, ``Request for Advance or Reimbursement.''
    (5) 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:
    (i) 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).
    (ii) Is the renewable energy system project complete? If so, what 
is the actual amount of energy being produced?
    (6) Other reports. For clarification purposes, the Agency may 
request any additional project and/or performance data for the project 
for which grant funds have been received.

N. Financial Management System and Records

    Grantees are required to maintain a financial management system and 
records in accordance with 7 CFR 3015.

O. 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.

P. 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.

Q. 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 type of renewable energy technology and the scope of the 
project for which the Agency funds will be used remain unchanged.

R. 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 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.

V. 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 
adverse Agency 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.
    (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 of their right to 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) 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.

[[Page 47533]]

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 there from; 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 Departmental Regulations, as applicable, which 
are incorporated by reference herein.

VI. 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 Energy Coordinators, as provided in the Addresses section 
of this Notice.

VII. 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.''

VIII. 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: August 2, 2010.
Judith A. Canales,
Administrator, Rural Business-Cooperative Service.

Appendix A--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, and
     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 section of 
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:
     Economic feasibility determinations,
     Market feasibility determinations,
     Technical feasibility determinations,
     Financial feasibility determinations, and
     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 3 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

[[Page 47534]]

the feasibility study, including prior experience.

Appendix B--Grant Agreement For Renewable Energy System Feasibility 
Studies

    This GRANT AGREEMENT (Agreement) is a contract for receipt of 
grant funds of $--------------, 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, (P.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 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 the grant may be adjusted.

(1) 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 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.
    Grantee and Grantor agree to all of the terms and provisions of 
any policies and regulations promulgated under Title IX, Section 
9001 of the Food, Conservation, and Energy Act of 2008. 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 Grantor.
    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 tasks included in the application and budget approved 
by the Grantor. The approved 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 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, 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.

(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. 
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 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.

(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 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-425, ``Federal Financial Report,'' and a final 
performance report within 90 days of the completion of the 
feasibility study. When submitting the final SF-425, Grantee must 
submit sufficient documentation, including invoices, to allow 
Grantor to verify that the 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 Grantor; and
    C. Beginning the first full year after the feasibility study has 
been completed, Grantee shall report to 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) If the renewable energy system project is complete, what is 
the actual amount of energy being produced?
    D. Other reports. For clarification purposes, the 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 allow Grantor access to the 
records and performance information obtained under the scope of the 
project including those required to be maintained after project 
completion.

(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. A SF-270, ``Request for Advance or Reimbursement,'' must be 
completed by Grantee and submitted to the Agency at the completion 
of the feasibility study.
    E. Grantor will disburse grant funds to 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 Grantor.

(8) Use of Remaining Grant Funds

    Grant funds not expended within 24 months from date of this 
agreement will be

[[Page 47535]]

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

[FR Doc. 2010-19335 Filed 8-5-10; 8:45 am]
BILLING CODE 3410-XY-P