[Federal Register Volume 77, Number 22 (Thursday, February 2, 2012)]
[Notices]
[Pages 5232-5234]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-2244]


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DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service


Notice of Funding Availability (NOFA) for Repowering Assistance 
Payments to Eligible Biorefineries

AGENCY: Rural Business-Cooperative Service and Rural Utilities Service, 
USDA.

ACTION: Notice.

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SUMMARY: This Notice announces the acceptance of applications for 
payments to eligible biorefineries to encourage the

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use of renewable biomass as a replacement fuel source for fossil fuels 
used to provide process heat or power in the operation of these 
eligible biorefineries. To be eligible for payments, biorefineries must 
have been in existence on or before June 18, 2008. The Notice announces 
the availability of approximately $25 million to make payments to 
eligible biorefineries in Fiscal Year 2012, which includes carry-over 
funds from Fiscal Year 2011.

DATES: Applications for participating in this program for Fiscal Year 
2012 will be accepted from February 2, 2012 through June 1, 2012. 
Applications received after June 1, 2012, regardless of their postmark, 
will not be considered for Fiscal Year 2012 payments. If the actual 
deadline falls on a weekend or a federally-observed holiday, the 
deadline is the next Federal business day.

ADDRESSES: Application materials may be obtained by contacting USDA, 
Rural Development-Energy Division, Program Branch, Attention: 
Repowering Assistance Program, 1400 Independence Avenue SW., Stop 3225, 
Washington, DC 20250-3225.
    Submit applications to USDA, Rural Development-Energy Division, 
Program Branch, Attention: Repowering Assistance Program, 1400 
Independence Avenue SW., Stop 3225, Washington, DC 20250-3225.

FOR FURTHER INFORMATION CONTACT: For further information on this 
payment program, please contact Fred Petok, USDA, Rural Development, 
Business Programs Energy Division, 1400 Independence Avenue SW., Room 
6870, STOP 3225, Washington, DC 20250-3225. Telephone: (202) 720-1400. 
Email: [email protected].

SUPPLEMENTARY INFORMATION: 

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995, the 
information collection requirements associated with the Section 9004 
Repowering Assistance Payments to Eligible Biorefineries program, as 
covered in this Notice, have been approved by the Office of Management 
and Budget (OMB) under OMB Control Number 0570-0058.

Overview

    Federal Agency Name: Rural Business-Cooperative Service (an agency 
of the United States Department of Agriculture in the Rural Development 
mission area).
    Payment Proposal Title: Repowering Assistance Program.
    Announcement Type: Initial announcement.
    Catalog of Federal Domestic Assistance Number. The CFDA number for 
this Notice is 10.866.
    Dates: The Repowering Assistance Program application period for 
Fiscal Year 2012 is February 2, 2012 to June 1, 2012.
    Availability of Notice and Rule. This Notice and the interim rule 
for the Repowering Assistance Program are available on the USDA Rural 
Development Web site at http://www.rurdev.usda.gov/BCP_RepoweringAssistance.html.

I. Funding Opportunity Description

    A. Purpose of the Program. The purpose of this program is to 
provide financial incentives to biorefineries in existence on or before 
June 18, 2008, the date of the enactment of the Food, Conservation, and 
Energy Act of 2008 (the 2008 Farm Bill) (Pub. L. 110-246), to replace 
the use of fossil fuels used to produce heat or power at their 
facilities by installing new systems that use renewable biomass, or to 
produce new energy from renewable biomass.
    B. Statutory Authority. This program is authorized under 7 U.S.C. 
8104.
    C. Definition of Terms. The definitions applicable to this Notice 
are published at 7 CFR 4288.2.

II. Award Information

    A. Available funds. The Agency is authorizing approximately $25 
million for this program in Fiscal Year 2012, in addition to any carry-
over funds from Fiscal Year 2011.
    B. Number of payments. The number of payments will depend on the 
number of participating biorefineries.
    C. Amount of payments. The Agency will determine the amount of 
payments to be made to a biorefinery by taking into consideration the 
percentage reduction in fossil fuel used by the biorefinery (including 
the quantity of fossil fuels a renewable biomass system is replacing) 
and the cost and cost-effectiveness of the renewable biomass system.
    D. Payment limitations. There is no minimum payment amount that an 
individual biorefinery can receive. The maximum amount an individual 
biorefinery can receive under this Notice is 50 percent of total 
eligible project costs up to a maximum of $10 million.
    E. Project costs. Eligible project costs will be only for project 
related construction costs for repowering improvements associated with 
the equipment, installation, engineering, design, site plans, 
associated professional fees, permits and financing fees. Any project 
costs incurred by the applicant prior to application for payment 
assistance under this Notice will be ineligible for payment assistance.
    F. Type of instrument. Payment agreement.

III. Eligibility Information

    A. Eligible applicants. Program requirements are found in 7 CFR 
4288.10 published in the Federal Register on February 11, 2011. To be 
eligible for this program, an applicant must be a biorefinery that has 
been in existence on or before June 18, 2008, and will utilize 
renewable biomass for replacement fuel.
    B. Ineligible projects. A project is not eligible under this Notice 
if it is using feedstocks for repowering that are feed grain 
commodities that received benefits under Title I of the Food, 
Conservation, and Energy Act of 2008.

IV. Multiple Submissions

    Corporations and entities with more than one biorefinery can submit 
an application for only one of their biorefineries. However, if a 
corporation or entity has multiple biorefineries located at the same 
location, the entity may submit an application that covers such 
biorefineries provided the heat and power used in the multiple 
biorefineries are centrally produced.

V. Scoring Advice

    A. Cost Effectiveness. To be credible and meet the minimum scoring 
criteria, the project must have a simple payback period of no more than 
10 years (i.e., must be awarded at least 5 points for cost-
effectiveness under 7 CFR 4288.21(b)(1)).
    B. Percentage of reduction of fossil fuel use. To be credible and 
meet the minimum scoring criteria, the applicant must demonstrate that 
the repowering project has an anticipated annual reduction in fossil 
fuel use of at least 40 percent (i.e., the application must be awarded 
at least 5 points for percentage of reduction of fossil fuel use under 
7 CFR 4288.21(b)(2)).

VI. Project Financing

    The applicant must demonstrate that it has sufficient funds or has 
obtained commitments for sufficient funds to complete the repowering 
project taking into account the amount of the payment request in the 
application.

VII. Fiscal Year 2012 Application and Submission Information

    A. To request applications. Application materials, including 
application forms, regulations, instructions, and other materials 
related

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to this program, are available from the USDA Rural Development State 
Office, Renewable Energy Coordinator and the USDA Rural Development Web 
site at http://www.rurdev.usda.gov/BCP_RepoweringAssistance.html.
    http://www.rurdev.usda.gov/BCP_ReapLoans.html.
    B. Content and form of submission. Applicants must submit a signed 
original and one copy of an application containing all the information 
specified in 7 CFR 4288.20(b) and (c).
    C. Submission dates and times. Applications to participate in this 
program for Fiscal Year 2012 must be submitted between February 2, 2012 
and June 1, 2012. Applications received after 4:30 p.m. June 1, 2012, 
regardless of their postmark, will not be considered by the Agency for 
Fiscal Year 2012 payments.
    D. Payment provisions. Fiscal Year 2012 payments will be made 
according to the provisions specified in 7 CFR 4288.13(b) and (c) and 
in 7 CFR 4288.24.

VIII. Application Review and Selection Information

    The Agency will evaluate projects based on the cost, cost-
effectiveness, and capacity of projects to reduce fossil fuels. The 
cost of the project will be taken into consideration in the context of 
each project's ability to economically produce energy from renewable 
biomass to replace its dependence on fossil fuels. Projects with higher 
costs that are less efficient will not score well. The scoring criteria 
are designed to evaluate projects on simple payback as well as the 
percentage of fossil fuel reduction.
    A. Review. The Agency will review applications submitted under this 
Notice in accordance with 7 CFR 4288.21(a).
    B. Scoring. The Agency will score applications submitted under this 
Notice in accordance with 7 CFR 4288.21(b).
    C. Ranking and selecting applications. All scored applications will 
be ranked by the Agency as soon after June 1, 2012 as possible. The 
Agency will consider the score an application has received compared to 
the scores of other applications in the priority list, with higher 
scoring applications receiving first consideration for payments. Using 
the application scoring criteria point values specified in 7 CFR 
4288.21, the Agency will select applications for payments.
    D. Availability of funds. As applications are funded, if 
insufficient funds remain to pay the next highest scoring application, 
the Agency may elect to pay 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 payment request 
to the amount of funds available. If the applicant agrees to lower its 
payment request, it must certify that the purposes of the project can 
be met, and the Agency must determine the project is feasible at the 
lower amount.

IX. Administration Information

    A. Notice of eligibility. The provisions of 7 CFR 4288.23 apply to 
this Notice. These provisions include notifying an applicant determined 
to be eligible for participation and notifying an applicant determined 
to be ineligible, including their application score and ranking and the 
score necessary to qualify for payments.
    B. Administrative and National Policy requirements.
    (1) Review or appeal rights. A person may seek a review of an 
agency adverse decision or appeal to the National Appeals Division as 
provided in 7 CFR 4288.3.
    (2) Compliance with other laws and regulations. The provisions of 7 
CFR 4288.4 apply to this Notice, which includes requiring participating 
biorefineries to be in compliance with other applicable Federal, State, 
and local laws.
    (3) Oversight and monitoring. The provisions of 7 CFR 4288.5(a) and 
(b) apply to this Notice, which includes the right of the Agency to 
verify all payment applications and subsequent payments and the 
requirement that each biorefinery must make available, at one place at 
all reasonable times for examination by the Agency, all books, 
documents, papers, receipts, payroll records, and bills of sale 
adequate to identify the purposes for which, and the manner in which, 
funds were expended for all eligible project costs for a period of not 
less than 3 years from the final payment date.
    (4) Reporting. Upon completion of the repowering project funded 
under this Notice, the biorefinery must submit a report, in accordance 
with 7 CFR 4288.5(c), to the Agency annually for the first 3 years 
after completion of the project. The reports are to be submitted as of 
October 1 of each year.
    (5) Exception authority. The provisions of 7 CFR 4288.7 apply to 
this Notice.
    (6) Succession and control of facilities and production. The 
provisions of 7 CFR 4288.25 apply to this Notice.
    C. Environmental review. All recipients under this Notice are 
subject to the requirements of 7 CFR Part 1940, subpart G.

X. Agency Contacts

    For further information about this Notice, please contact Fred 
Petok, USDA, Rural Development, Business Programs Energy Division, 1400 
Independence Avenue SW., Room 6870, STOP 3225, Washington, DC 20250-
3225. Telephone: (202) 720-1400. Email: [email protected].

XI. 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 Adjudication and Compliance, 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.

     Dated: January 23, 2012.
Judith A. Canales,
Administrator, Rural Business-Cooperative Service.
[FR Doc. 2012-2244 Filed 2-1-12; 8:45 am]
BILLING CODE 3410-XY-P