[Federal Register Volume 83, Number 157 (Tuesday, August 14, 2018)]
[Notices]
[Pages 40216-40223]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-17513]


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DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service


Notice of Solicitation of Applications for the Rural Energy for 
America Program for Fiscal Year 2019

AGENCY: Rural Business-Cooperative Service, USDA.

ACTION: Notice.

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SUMMARY: The Rural Business-Cooperative Service (the Agency) Notice of 
Solicitation of Applications (NOSA) is being issued prior to passage of 
a final appropriations act to allow potential applicants time to submit 
applications for financial assistance under Rural Energy for America 
Program (REAP) for Federal Fiscal Year (FY) 2019, and give the Agency 
time to process applications within the current FY. This NOSA is being 
issued prior to enactment of full year appropriation for FY2019. The 
Agency will publish the amount of funding received in any continuing 
resolution or the final appropriations act on its website at https://www.rd.usda.gov/newsroom/notices-solicitation-applications-nosas. 
Expenses incurred in developing applications will be at the applicant's 
risk.
    The REAP has two types of funding assistance: (1) Renewable Energy 
Systems and Energy Efficiency Improvements Assistance and (2) Energy 
Audit and Renewable Energy Development Assistance Grants.
    The Renewable Energy Systems and Energy Efficiency Improvement 
Assistance provides grants and guaranteed loans to agricultural 
producers and rural small businesses to purchase and install renewable 
energy systems and make energy efficiency improvements to their 
operations. Eligible renewable energy systems for REAP provide energy 
from: Wind, solar, renewable biomass (including anaerobic digesters), 
small hydro-electric, ocean, geothermal, or hydrogen derived from these 
renewable resources.
    The Energy Audit and Renewable Energy Development Assistance Grant 
is available to a unit of State, Tribal, or local government; 
instrumentality of a State, Tribal, or local government; institution of 
higher education; rural electric cooperative; a public power entity; or 
a council, as defined in 16 U.S.C. 3451. The recipient of grant funds, 
grantee, will establish a program to assist agricultural producers and 
rural small businesses with evaluating the energy efficiency and the 
potential to incorporate renewable energy technologies into their 
operations.

DATES: See under SUPPLEMENTARY INFORMATION section.

FOR FURTHER INFORMATION CONTACT: The applicable USDA Rural Development 
Energy Coordinator for your respective State, as identified via the 
following link: https://www.rd.usda.gov/files/RBS_StateEnergyCoordinators.pdf.
    For information about this Notice, please contact Anthony Crooks, 
Rural Energy Policy Specialist, USDA Rural Development, Energy 
Division, 1400 Independence Avenue SW, Stop 3225, Room 6870, 
Washington, DC 20250. Telephone:(202) 205-9322. Email: 
[email protected].

SUPPLEMENTARY INFORMATION: 

Preface

    The Agency encourages applications that will support 
recommendations made in the Rural Prosperity Task Force report to help 
improve life in rural America (www.usda.gov/ruralprosperity). 
Applicants are encouraged to consider projects that provide measurable 
results in helping rural communities build robust and sustainable 
economies through strategic investments in infrastructure, 
partnerships, and innovation. Key strategies include:

 Achieving e-Connectivity for Rural America
 Developing the Rural Economy
 Harnessing Technological Innovation
 Supporting a Rural Workforce
 Improving Quality of Life

I. Program Description

    The Rural Energy for America Program (REAP) helps agricultural 
producers and rural small businesses reduce energy costs and 
consumption and helps meet the Nation's critical energy needs. REAP has 
two types of funding assistance: (1) Renewable Energy Systems and 
Energy Efficiency Improvements Assistance and (2) Energy Audit and 
Renewable Energy Development Assistance Grants.
    The Renewable Energy Systems and Energy Efficiency Improvements 
Assistance provides grants and guaranteed loans to agricultural 
producers and rural small businesses for renewable energy systems and 
energy efficiency improvements. Eligible renewable energy systems for 
REAP provide energy from: Wind, solar, renewable biomass (including 
anaerobic digesters), small hydro-electric, ocean, geothermal, or 
hydrogen derived from these renewable resources.
    The Energy Audit and Renewable Energy Development Assistance Grant 
is available to a unit of State, Tribal, or local government; 
instrumentality of a State, Tribal, or local government; institution of 
higher education; rural electric cooperative; a public power entity; or 
a council, as defined in 16 U.S.C. 3451. The recipient of grant funds, 
grantee, will establish a program to assist agricultural producers and 
rural small businesses with evaluating the energy efficiency and the 
potential to incorporate renewable energy technologies into their 
operations.

[[Page 40217]]

    A. General. Applications for REAP can be submitted any time 
throughout the year. This Notice announces the deadlines, dates and 
times that applications must be received in order to be considered for 
REAP funds provided by the Agricultural Act of 2014, (2014 Farm Bill), 
and any appropriated funds that REAP may receive from the appropriation 
for FY 2019 for grants, guaranteed loans, and combined grants and 
guaranteed loans to purchase and install renewable energy systems, and 
make energy efficiency improvements; and for grants to conduct energy 
audits and renewable energy development assistance.
    The Notice of Solicitation of Applications (NOSA) announces the 
acceptance of applications under REAP for FY 2019 for grants, 
guaranteed loans, and combined grants and guaranteed loans for the 
development of renewable energy systems and energy efficiency projects 
as provided by the Agricultural Act of 2014 (2014 Farm Bill). The 
Notice also announces the acceptance of applications under REAP for FY 
2019 for energy audit and renewable energy development assistance 
grants as provided by the 2014 Farm Bill.
    The administrative requirements in effect at the time the 
application window closes for a competition will be applicable to each 
type of funding available under REAP and are described in 7 CFR part 
4280, subpart B. In addition to the other provisions of this Notice:
    (1) The provisions specified in 7 CFR 4280.101 through 4280.111 
apply to each funding type described in this Notice.
    (2) The requirements specified in 7 CFR 4280.112 through 4280.124 
apply to renewable energy system and energy efficiency improvements 
project grants.
    (3) The requirements specified in 7 CFR 4280.125 through 4280.152 
apply to guaranteed loans for renewable energy system and energy 
efficiency improvements projects. For FY 2019, the guarantee fee amount 
is one percent of the guaranteed portion of the loan, and the annual 
renewal fee is one-quarter of 1 percent (0.250 percent) of the 
guaranteed portion of the loan.
    (4) The requirements specified in 7 CFR 4280.165 apply to a 
combined grant and guaranteed loan for renewable energy system and 
energy efficiency improvements projects.
    (5) The requirements specified in 7 CFR 4280.186 through 4280.196 
apply to energy audit and renewable energy development assistance 
grants.

II. Federal Award Information

    A. Statutory Authority. This program is authorized under 7 U.S.C. 
8107.
    B. Catalog of Federal Domestic Assistance (CFDA) Number. 10.868.
    C. Funds Available. This Notice is announcing deadline times and 
dates for applications to be submitted for REAP funds provided by the 
2014 Farm Bill and any appropriated funds that REAP may receive from 
the congressional enactment of a full-year appropriation for FY 2019. 
This Notice is being published prior to the congressional enactment of 
a full-year appropriation for FY 2019. The Agency will continue to 
process applications received under this announcement and should REAP 
receive appropriated funds, these funds will be announced on the 
following website: https://www.rd.usda.gov/programs-services/rural-energy-america-program-renewable-energy-systems-energy-efficiency, and 
are subject to the same provisions in this Notice.
    To ensure that small projects have a fair opportunity to compete 
for the funding and are consistent with the priorities set forth in the 
statute, the Agency will set-aside not less than 20 percent of the FY 
2019 funds until June 29, 2019, to fund grants of $20,000 or less.
    (1) Renewable energy system and energy efficiency improvements 
grant-funds. There will be allocations of grant funds to each Rural 
Development State Office for renewable energy system and energy 
efficiency improvements applications. The State allocations will 
include an allocation for grants of $20,000 or less funds and an 
allocation of grant funds that can be used to fund renewable energy 
system and energy efficiency improvements applications for either 
grants of $20,000 or less or grants of more than $20,000, as well as 
the grant portion of a combination grant and guaranteed loan. These 
funds are commonly referred to as unrestricted grant funds. The funds 
for grants of $20,000 or less can only be used to fund grants 
requesting $20,000 or less, which includes the grant portion of 
combination requests when applicable.
    (2) Renewable energy system and energy efficiency improvements loan 
guarantee funds. Rural Development's National Office will maintain a 
reserve of guaranteed loan funds.
    (3) Renewable energy system and energy efficiency improvements 
combined grant and guaranteed loan funds. Funding availability for 
combined grant and guaranteed loan applications are outlined in 
paragraphs II.(C)(1) and II.(C)(2) of this Notice.
    (4) Energy audit and renewable energy development assistance grant 
funds. The amount of funds available for energy audits and renewable 
energy development assistance in FY 2019 will be 4 percent of FY 2019 
mandatory funds and will be maintained in a National Office reserve. 
Obligations of these funds will take place through March 30, 2019. Any 
unobligated balances will be moved to the renewable energy budget 
authority account and may be utilized in any of the renewable energy 
system and energy efficiency improvements national competitions.
    D. Approximate Number of Awards. The estimated number of awards is 
1,000 based on the historical average grant size and the anticipated 
mandatory funding of $50 million for FY 2019, but will depend on the 
actual amount of funds made available and on the number of eligible 
applicants participating in this program.
    E. Type of Instrument. Grant, guaranteed loan, and grant/guaranteed 
loan combinations.

III. Eligibility Information

    The eligibility requirements for the applicant, borrower, lender, 
and project (as applicable) are clarified in 7 CFR part 4280 subpart B, 
and are summarized in this Notice. Failure to meet the eligibility 
criteria by the time of the competition window may result in the Agency 
reviewing an application, but will preclude the application from 
receiving funding until all eligibility criteria have been met.
    A. Eligible Applicants. This solicitation is for applications from 
agricultural producers and rural small businesses for grants or 
guaranteed loans, or a combination grant and guaranteed loan, for the 
purpose of purchasing and installing renewable energy systems and 
energy efficiency improvements. This solicitation is also for 
applications for Energy Audit or a Renewable Development Assistance 
grants from units of State, Tribal, or local government; 
instrumentalities of a State, Tribal, or local government; institutions 
of higher education; rural electric cooperatives; public power 
entities; and councils, as defined in 16 U.S.C. 3451, which serve 
agricultural producers and rural small businesses. To be eligible for 
the grant portion of the program, an applicant must meet the 
requirements specified in 7 CFR 4280.110, and 7 CFR 4280.112, or 7 CFR 
4280.186, as applicable.
    B. Eligible Lenders and Borrowers. To be eligible for the 
guaranteed loan portion of the program, lenders and borrowers must meet 
the eligibility

[[Page 40218]]

requirements in 7 CFR 4280.125 and 7 CFR 4280.127, as applicable.
    C. Eligible Projects. To be eligible for this program, a project 
must meet the eligibility requirements specified in 7 CFR 4280.113, 7 
CFR 4280.128, and 7 CFR 4280.187, as applicable.
    D. Cost Sharing or Matching. The 2014 Farm Bill mandates the 
maximum percentages of funding that REAP can provide. Additional 
clarification is provided in paragraphs IV.E.(1) through (3) of this 
Notice.
    (1) Renewable energy system and energy efficiency improvements 
funding. Requests for guaranteed loan and combined grant and guaranteed 
loan will not exceed 75 percent of total eligible project costs, with 
any Federal grant portion not to exceed 25 percent of total eligible 
project costs, whether the grant is part of a combination request or is 
a grant-only.
    (2) Energy audit and renewable energy development funds. Requests 
for the energy audit and renewable energy development assistance 
grants, will indicate that the grantee that conducts energy audits must 
require that, as a condition of providing the energy audit, the 
agricultural producer or rural small business pay at least 25 percent 
of the cost of the energy audit. The Agency recommended practice for on 
farm energy audits, audits for agricultural producers, ranchers, and 
farmers is the American Society of Agricultural and Biological 
Engineers S612 Level II audit. This audit conforms to program standards 
used by the Natural Resource Conservation Service. As per 7 CFR 
4280.110(a), an applicant who has received one or more grants under 
this program must have made satisfactory progress towards completion of 
any previously funded projects before being considered for subsequent 
funding. The Agency interprets satisfactory progress as at least 50 
percent of previous awards expended by January 31, 2019. Those who 
cannot meet this requirement will be determined to be a ``risk'' 
pursuant to 2 CFR 200.205 and may be determined in-eligible for a 
subsequent grant or have special conditions imposed.
    E. Other. Ineligible project costs can be found in 7 CFR 
4280.114(d), 7 CFR 4280.129(f), and 7 CFR 4280.188(c), as applicable. 
The U.S. Department of Agriculture Departmental Regulations and Laws 
that contain other compliance requirements are referenced in paragraphs 
VI.B.(1) through (3), and IV.F of this Notice. Applicants who have been 
found to be in violation of applicable Federal statutes will be 
ineligible.

IV. Application and Submission Information

    A. Address to Request Application Package. Application materials 
may be obtained by contacting one of Rural Development's Energy 
Coordinators, as identified via the following link: https://www.rd.usda.gov/files/RBS_StateEnergyCoordinators.pdf. In addition, for 
grant applications, applicants may obtain electronic grant applications 
for REAP from www.grants.gov.
    B. Content and Form of Application Submission. Applicants seeking 
to participate in this program must submit applications in accordance 
with this Notice and 7 CFR part 4280, subpart B. Applicants must submit 
complete applications by the dates identified in Section IV.C., of this 
Notice, containing all parts necessary for the Agency to determine 
applicant and project eligibility, to score the application, and to 
conduct the technical evaluation, as applicable, in order to be 
considered.
    (1) Renewable energy system and energy efficiency improvements 
grant application.
    (a) Information for the required content of a grant application to 
be considered complete is found in 7 CFR part 4280, subpart B.
    (i) Grant applications for renewable energy systems and energy 
efficiency improvements projects with total project costs of $80,000 or 
less must provide information required by 7 CFR 4280.119.
    (ii) Grant applications for renewable energy systems and energy 
efficiency improvements projects with total project costs of $200,000 
or less, but more than $80,000, must provide information required by 7 
CFR 4280.118.
    (iii) Grant applications for renewable energy systems and energy 
efficiency improvements projects with total project costs of greater 
than $200,000 must provide information required by 7 CFR 4280.117.
    (iv) Grant applications for energy audits or renewable energy 
development assistance grant applications must provide information 
required by 7 CFR 4280.190.
    (b) All grant applications must be submitted either as hard copy to 
the appropriate Rural Development Energy Coordinator in the State in 
which the applicant's proposed project is located, or electronically 
using the Government-wide www.grants.gov website.
    (i) Applicants submitting a grant application as a hard copy must 
submit one original to the appropriate Rural Development Energy 
Coordinator in the State in which the applicant's proposed project is 
located. A list of USDA Rural Development Energy Coordinators is 
available via the following link: https://www.rd.usda.gov/files/RBS_StateEnergyCoordinators.pdf.
    (ii) Applicants submitting a grant application to the Agency via 
www.grants.gov (website) will find information about submitting an 
application electronically through the website, and may download a copy 
of the application package to complete it off line, upload and submit 
the completed application, including all necessary assurances and 
certifications, via www.grants.gov. After electronically submitting an 
application through the website, the applicant will receive an 
automated acknowledgement from www.grants.gov that contains a 
www.grants.gov tracking number. USDA Rural Development strongly 
recommends that applicants do not wait until the application deadline 
date to begin the application process through www.grants.gov.
    (c) After successful applicants are notified of the intent to make 
a Federal award, applicants must meet the requirements of 7 CFR 
4280.122(a) through (h) for the grant agreement to be executed.
    (2) Renewable energy system and energy efficiency improvements 
guaranteed loan application.
    (a) Information for the content required for a guaranteed loan 
application to be considered complete is found in 7 CFR 4280.137.
    (b) All guaranteed loan applications must be submitted as a hard 
copy to the appropriate Rural Development Energy Coordinator in the 
State in which the applicant's proposed project is located. A list of 
USDA Rural Development Energy Coordinators is available via the 
following link: https://www.rd.usda.gov/files/RBS_StateEnergyCoordinators.pdf.
    (c) After successful applicants are notified of the intent to make 
a Federal award, borrowers must meet the conditions prior to issuance 
of loan note guarantee as outlined in 7 CFR 4280.142.
    (3) Renewable energy system and energy efficiency improvements 
combined guaranteed loan and grant application.
    (a) Information for the content required for a combined guaranteed 
loan and grant application to be considered complete is found in 7 CFR 
4280.165(c).
    (c) After successful applicants are notified of the intent to make 
a Federal award, applicants must meet the requirements of 7 CFR 
4280.122(a) through (h) for the grant agreement to be executed.

[[Page 40219]]

    (2) Renewable energy system and energy efficiency improvements 
guaranteed loan application.
    (a) Information for the content required for a guaranteed loan 
application to be considered complete is found in 7 CFR 4280.137.
    (b) All guaranteed loan applications must be submitted as a hard 
copy to the appropriate Rural Development Energy Coordinator in the 
State in which the applicant's proposed project is located. A list of 
USDA Rural Development Energy Coordinators is available via the 
following link: https://www.rd.usda.gov/files/RBS_StateEnergyCoordinators.pdf.
    (c) After successful applicants are notified of the intent to make 
a Federal award, borrowers must meet the conditions prior to issuance 
of loan note guarantee as outlined in 7 CFR 4280.142.
    (3) Renewable energy system and energy efficiency improvements 
combined guaranteed loan and grant application.
    (a) Information for the content required for a combined guaranteed 
loan and grant application to be considered complete is found in 7 CFR 
4280.165(c).
    (b) All combined guaranteed loan and grant applications must be 
submitted as hard copy to the appropriate Rural Development Energy 
Coordinator in the State in which the applicant's proposed project is 
located. A list of USDA Rural Development Energy Coordinators is 
available via the following link: www.rd.usda.gov/files/RBS_StateEnergyCoordinators.pdf.
    (c) After successful applicants are notified of the intent to make 
a Federal award, applicants must meet the requirements, including the 
requisite forms and certifications, specified in 7 CFR 4280.117, 
4280.118, 4280.119, and 4280.137, as applicable, for the issuance of a 
grant agreement and loan note guarantee.
    (4) Energy audits or renewable development assistance grant 
applications.
    (a) Grant applications for energy audits or renewable energy 
development assistance must provide the information required by 7 CFR 
4280.190 to be considered a complete application.
    (b) All energy audits or renewable development assistance grant 
applications must be submitted either as hard copy to the appropriate 
Rural Development Energy Coordinator in the State in which the 
applicant's proposed project is located, electronically using the 
Government-wide www.grants.gov website, or via an alternative 
electronic format with electronic signature followed up by providing 
original signatures to the appropriate Rural Development office. 
Instructions for submission of the application can be found at section 
IV.B. of this Notice.
    (c) After successful applicants are notified of the intent to make 
a Federal award, applicants must meet the requirements of 7 CFR 
4280.195 for the grant agreement to be executed.
    5. Dun and Bradstreet Universal Numbering System (DUNS) Number and 
System for Award Management (SAM). Unless exempt under 2 CFR 25.110, or 
who have an exception approved by the Federal awarding agency under 2 
CFR 25.110(d), applicants as applicable are required to:
    (a) Grant applicants must be registered in SAM prior to submitting 
a grant application; which can be obtained at no cost via a toll-free 
request line at (866) 705-5711 or online at www.sam.gov. Registration 
of new entities in SAM requires an original, signed notarized letter 
stating that you are the authorized Entity Administrator before your 
registration will be activated.
    (b) Guaranteed loan applicants are required to have an active SAM 
registration prior to obligation and must maintain the active 
registration until all funds are disbursed to the lender by the Agency.
    (c) Provide a valid DUNS number in its grant or loan application.
    (d) Continue to maintain an active SAM registration with current 
information at all times during which it has an active Federal grant 
award or a grant application under consideration by the Agency.
    (e) If an applicant has not fully complied with the requirements of 
IV.C.(1) through (3) at the time the Agency is ready to make an award, 
the Agency may determine the applicant is not eligible to receive the 
award.
    C. Submission Dates and Times. Grant applications, guaranteed loan-
only applications, and combined grant and guaranteed loan applications 
for financial assistance provided by the 2014 Farm Bill for FY 2019, 
and for appropriated funds that REAP may receive from the appropriation 
for FY 2019, may be submitted at any time on an ongoing basis. When an 
application window closes, the next application window opens on the 
following day. This Notice establishes the deadline dates for the 
applications to be received in order to be considered for funding. If 
an application window falls on a Saturday, Sunday, or Federal holiday, 
the application package is due the next business day. An application 
received after these dates will be considered with other applications 
received in the next application window. In order to be considered for 
funds under this Notice, complete applications must be received by the 
appropriate USDA Rural Development State Office or via www.grants.gov. 
The deadline for applications to be received to be considered for 
funding in FY 2019 are outlined in the following paragraphs and also 
summarized in a table at the end of this section:
    (1) Renewable energy system and energy efficiency improvements 
grant applications and combination grant and guaranteed loan 
applications. As per RD Instruction 4280-B Application deadlines for FY 
2019 grant funds are:
    (a) For applicants requesting a grant only of $20,000 or less or a 
combination grant and guaranteed loan where the grant request is 
$20,000 or less, that wish to have their grant application compete for 
the ``Grants of $20,000 or less set aside,'' complete applications must 
be received no later than
    (i) 4:30 p.m. local time on October 31, 2018, or
    (ii) 4:30 p.m. local time on April 1, 2019.
    (b) For applicants requesting a grant only of over $20,000 
(unrestricted) or a combination grant and guaranteed loan where the 
grant request is greater than $20,000, complete applications must be 
received no later than 4:30 p.m. local time on April 1, 2019.
    (2) Renewable energy system and energy efficiency improvements 
guaranteed loan-only applications. Eligible applications will be 
reviewed and processed when received for periodic competitions.
    (3) Energy audits and renewable energy development assistance grant 
applications. Applications must be received no later than 4:30 p.m. 
local time on January 31, 2019.

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                                                   Application window opening       Application window closing
                  Application                                dates                            dates
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Renewable Energy Systems and Energy Efficiency  May 1, 2018....................  October 31, 2018.
 Improvements Grants ($20,000 or less grant
 only request or a combination grant and
 guaranteed loan where the grant request is
 $20,000 or less competing for up to
 approximately 50 percent of the set aside
 funds).

[[Page 40220]]

 
Renewable Energy Systems and Energy Efficiency  November 1, 2018...............  April 1, 2019.*
 Improvements Grants ($20,000 or less grant
 only request or a combination grant and
 guaranteed loan where the grant request is
 $20,000 or less competing for the remaining
 set aside funds).
Renewable Energy Systems and Energy Efficiency  May 1, 2018....................  April 1, 2019.*
 Improvements Grants (Unrestricted grants,
 including combination grant and guaranteed
 loan where the grant request is greater than
 $20,000).
Renewable Energy Systems and Energy Efficiency  Continuous application cycle...  Continuous application cycle.
 Improvements Guaranteed Loans.
Energy Audit and Renewable Energy Development   February 1, 2018...............  January 31, 2019.
 Assistance Grants.
----------------------------------------------------------------------------------------------------------------
* Applications received after this date will be considered for the next funding cycle in the subsequent FY.

    D. Intergovernmental Review. REAP is not subject to Executive Order 
12372, Intergovernmental Review of Federal Programs.
    E. Funding Restrictions. The following funding limitations apply to 
applications submitted under this Notice.
    (1) Renewable energy system and energy efficiency improvements 
projects.
    (a) Applicants can be awarded only one renewable energy system 
grant and one energy efficiency improvement grant in FY 2019.
    (b) For renewable energy system grants, the minimum grant is $2,500 
and the maximum is $500,000. For energy efficiency improvements grants, 
the minimum grant is $1,500 and the maximum grant is $250,000.
    (c) For renewable energy system and energy efficiency improvements 
loan guarantees, the minimum REAP guaranteed loan amount is $5,000 and 
the maximum amount of a guaranteed loan to be provided to a borrower is 
$25 million.
    (d) Renewable energy system and energy efficiency improvements 
guaranteed loan and grant combination applications. Paragraphs 
IV.E.(1)(b) and (c) of this Notice contain the applicable maximum 
amounts and minimum amounts for grants and guaranteed loans. Requests 
for guaranteed loan and combined grant and guaranteed loan will not 
exceed 75 percent of eligible project costs, with any Federal grant 
portion not to exceed 25 percent of the eligible project costs, whether 
the grant is part of a combination request or is a grant-only.
    (2) Energy audit and renewable energy development assistance 
grants.
    (a) Applicants may submit only one energy audit grant application 
and one renewable energy development assistance grant application for 
FY 2019 funds.
    (b) The maximum aggregate amount of energy audit and renewable 
energy development assistance grants awarded to any one recipient under 
this Notice cannot exceed $100,000 for FY 2019.
    (c) The 2014 Farm Bill mandates that the recipient of a grant that 
conducts an energy audit for an agricultural producer or a rural small 
business must 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.
    (3) Maximum grant assistance to an entity. For the purposes of this 
Notice, the maximum amount of grant assistance to an entity will not 
exceed $750,000 for FY 2019 based on the total amount of the renewable 
energy system, energy efficiency improvements, energy audit, and 
renewable energy development assistance grants awarded to an entity 
under REAP.
    F. Other Submission Requirements.
    (1) Environmental information. For the Agency to consider an 
application, the application must include all environmental review 
documents with supporting documentation in accordance with 7 CFR part 
1970. Any required environmental review must be completed prior to 
obligation of funds or the approval of the application. Applicants are 
advised to contact the Agency to determine environmental requirements 
as soon as practicable to ensure adequate review time.
    (2) Felony conviction and tax delinquent status. Corporate 
applicants submitting applications under this Notice must include Form 
AD 3030, ``Representations Regarding Felony Conviction and Tax 
Delinquent Status for Corporate Applicants.'' Corporate applicants who 
receive an award under this Notice will be required to sign Form AD 
3031, ``Assurance Regarding Felony Conviction or Tax Delinquent Status 
for Corporate Applicants.'' Both forms can be found online at http://www.ocio.usda.gov/document/ad3030 and http://www.ocio.usda.gov/document/ad3031.
    (3) Original signatures. USDA Rural Development may request that 
the applicant provide original signatures on forms submitted through 
www.grants.gov at a later date.
    (4) Transparency Act Reporting. All recipients of Federal financial 
assistance are required to report information about first-tier sub-
awards and executive compensation in accordance with 2 CFR part 170. If 
an applicant does not have an exception under 2 CFR 170.110(b), the 
applicant must then ensure that they have the necessary processes and 
systems in place to comply with the reporting requirements to receive 
funding.
    (5) Race, ethnicity, and gender. The Agency is requesting that each 
applicant provide race, ethnicity, and gender information about the 
applicant. The information will allow the Agency to evaluate its 
outreach efforts to under-served and under-represented populations. 
Applicants are encouraged to furnish this information with their 
applications, but are not required to do so. An applicant's eligibility 
or the likelihood of receiving an award will not be impacted by 
furnishing or not furnishing this information. However, failure to 
furnish this information may preclude the awarding of State Director 
and Administrator points in Section V.E.(3) of this Notice.
    (6) Transfer of obligations. REAP grant obligations will be 
serviced in accordance with 7 CFR 4280.123 and 7 CFR 4280.196 as 
applicable. Transfer of obligations will no longer be considered by the 
Agency.

V. Application Review Information

    A. Criteria. In accordance with 7 CFR part 4280 subpart B, the 
application dates published in Section IV.C. of this Notice identify 
the times and dates by which complete applications must be received in 
order to compete for the funds available.
    (1) Renewable energy systems and energy efficiency improvements 
grant applications. Complete renewable energy systems and energy 
efficiency improvements grant applications are eligible to compete in 
competitions as described in 7 CFR 4280.121.
    (a) Complete renewable energy systems and energy efficiency 
improvements grant applications

[[Page 40221]]

requesting $20,000 or less are eligible to compete in up to five 
competitions within the FY as described in 7 CFR 4280.121(b). If the 
application remains unfunded after the final National Office 
competition for the FY it must be withdrawn. Pursuant to the 
publication of this announcement, all complete and eligible 
applications will be limited to competing in the FY that the 
application was received, versus rolling into the following FY, which 
may result in less than five total competitions. This was effective for 
any application submitted on or after April 1, 2017.
    (b) Complete renewable energy systems and energy efficiency 
improvements grant applications, regardless of the amount of funding 
requested, are eligible to compete in two competitions a FY--a State 
competition and a national competition as described in 7 CFR 
4280.121(a).
    (2) Renewable energy systems and energy efficiency improvements 
guaranteed loan applications. Complete guaranteed loan applications are 
eligible for periodic competitions as described in 7 CFR 4280.139(a).
    (3) Renewable energy systems and energy efficiency improvements 
combined guaranteed loan and grant applications. Complete combined 
guaranteed loan and grant applications with requests of $20,000 or less 
are eligible to compete in up to five competitions within the FY as 
described in 7 CFR 4280.121(b). Combination applications where the 
grant request is greater than $20,000, are eligible to compete in two 
competitions a FY--a State competition and a national competition as 
described in 7 CFR 4280.121(a).
    (4) Energy audit and renewable energy development assistance grant 
applications. Complete energy audit and renewable energy development 
assistance grants applications are eligible to compete in one national 
competition per FY as described in 7 CFR 4280.193.
    B. Review and Selection Process. All complete applications will be 
scored in accordance with 7 CFR part 4280 subpart B and this section of 
the Notice. Specifically, sections C and D below outline revisions to 
the scoring criteria found in 7 CFR 4280.120.
    (1) Renewable energy systems and energy efficiency improvements 
grant applications. Renewable energy system and energy efficiency grant 
applications will be scored in accordance with 7 CFR 4280.120 and 
selections will be made in accordance with 7 CFR 4280.121. For grant 
applications requesting greater than $250,000 for renewable energy 
systems, and/or greater than $125,000 for energy efficiency 
improvements a maximum score of 90 points is possible. For grant 
applications requesting $250,000 or less for renewable energy systems 
and/or $125,000 or less for energy efficiency improvements, an 
additional 10 points may be awarded such that a maximum score of 100 
points is possible. Due to the competitive nature of this program, 
applications are competed based on submittal date. The submittal date 
is the date the Agency receives a complete application. The complete 
application date is the date the Agency receives the last piece of 
information that allows the Agency to determine eligibility and to 
score, rank, and compete the application for funding.
    (a) Funds for renewable energy system and energy efficiency 
improvements grants of $20,000 or less will be allocated to the States. 
Eligible applications must be submitted by April 1, 2019, in order to 
be considered for these set-aside funds. Approximately 50 percent of 
these funds will be made available for those complete applications the 
Agency receives by October 31, 2018, and approximately 50 percent of 
the funds for those complete applications the Agency receives by April 
1, 2019. All unused State allocated funds for grants of $20,000 or less 
will be pooled to the National Office.
    (b) Eligible applications received by April 1, 2019, for renewable 
energy system and energy efficiency improvements grants of $20,000 or 
less, that are not funded by State allocations can be submitted to the 
National Office to compete against grant applications of $20,000 or 
less from other States at a national competition. Obligations of these 
funds will take place prior to June 28, 2019.
    (c) Eligible applications for renewable energy system and energy 
efficiency improvements, regardless of the amount of the funding 
request, received by April 30, 2019, can compete for unrestricted grant 
funds. Unrestricted grant funds will be allocated to the States. All 
unused State allocated unrestricted grant funds will be pooled to the 
National Office.
    (d) National unrestricted grant funds for all eligible renewable 
energy system and energy efficiency improvements grant applications 
received by April 30, 2019, which include grants of $20,000 or less, 
that are not funded by State allocations can be submitted to the 
National Office to compete against grant applications from other States 
at a final national competition.
    (2) Renewable energy systems and energy efficiency improvements 
guaranteed loan applications. Renewable energy systems and energy 
efficiency improvements guaranteed loan applications will be scored in 
accordance with 7 CFR 4280.135 and selections will be made in 
accordance with 7 CFR 4280.139. The National Office will maintain a 
reserve for renewable energy system and energy efficiency improvements 
guaranteed loan funds. Applications will be reviewed and processed when 
received. Those applications that meet the Agency's underwriting 
requirements, are credit worthy, and score a minimum of 40 points will 
compete in national competitions for guaranteed loan funds 
periodically. All unfunded eligible guaranteed loan-only applications 
received that do not score at least 40 points will be competed against 
other guaranteed loan-only applications from other States at a final 
national competition, if the guaranteed loan reserves have not been 
completely depleted, on September 2, 2019. If funds remain after the 
final guaranteed loan-only national competition, the Agency may elect 
to utilize budget authority to fund additional grant-only applications.
    (3) Renewable energy systems and energy efficiency improvements 
combined grant and guaranteed loan applications. Renewable energy 
systems and energy efficiency improvements combined grant and 
guaranteed loan applications will be scored in accordance with 7 CFR 
4280.120 and selections will be made in accordance with 7 CFR 4280.121. 
For combined grant and guaranteed loan applications requesting grant 
funds of $250,000 or less for renewable energy systems, or $125,000 or 
less for energy efficiency improvements, a maximum score of 100 points 
is possible. For combined grant and guaranteed loan applications 
requesting grant funds of more than $250,000 for renewable energy 
systems, or more than $125,000 for energy efficiency improvements, a 
maximum score of 90 points is possible.
    Renewable energy system and energy efficiency improvements combined 
grant and guaranteed loan applications will compete with grant-only 
applications for grant funds allocated to their State. If the 
application is ranked high enough to receive State allocated grant 
funds, the State will request funding for the guaranteed loan portion 
of any combined grant and guaranteed loan applications from the 
National Office guaranteed loan reserve, and no further competition 
will be required. All unfunded eligible applications for combined grant 
and guaranteed loan applications that are received by April 30, 2019, 
and that are not funded by

[[Page 40222]]

State allocations can be submitted to the National Office to compete 
against other grant and combined grant and guaranteed loan applications 
from other States at a final national competition.
    (4) Energy audit and renewable energy development assistance grant 
applications. Energy audit and renewable energy development assistance 
grants will be scored in accordance with 7 CFR 4280.192 and selections 
will be made in accordance with 7 CFR 4280.193. Energy audit and 
renewable energy development assistance grant funds will be maintained 
in a reserve at the National Office. Applications received by January 
31, 2019, will compete for funding at a national competition, based on 
the scoring criteria established under 7 CFR 4280.192. If funds remain 
after the energy audit and renewable energy development assistance 
national competition, the Agency may elect to transfer budget authority 
to fund additional renewable energy system and energy efficiency 
improvements grants from the National Office reserve after pooling.
    C. Size of Agricultural Producer or Rural Small Business. In 
alignment with the Report to the President of the United States from 
the Task Force on Agriculture and Rural Prosperity, the criterion noted 
in 7 CFR 4280.120(d) which allows for a maximum of 10 points to be 
awarded based on the size of the Applicant's agricultural operation or 
business concern, as applicable, compared to the SBA Small Business 
size standards categorized by NAICS found in 13 CFR 121.201, is being 
removed for applications for renewable energy systems or energy 
efficiency improvements effective as of the date of this publication.
    D. State Director and Administrator Points. The criterion noted in 
7 CFR 4280.120(g) allows for the State Director and the Administrator 
to take into consideration paragraphs V.D.(1) through (5) below in the 
awarding of up to 10 points for eligible renewable energy systems and 
energy efficiency improvement grant applications submitted in FY 2019:
    (1) May allow for applications for an under-represented technology 
to receive additional points.
    (2) May allow for applications that help achieve geographic 
diversity to receive additional points. This may include priority 
points for smaller grant requests which enhances geographic diversity.
    (3) May allow for applicants who are members of unserved or under-
served populations to receive additional points if one of the following 
criteria are met:
    (a) Owned by a veteran, including but not limited to individuals as 
sole proprietors, members, partners, stockholders, etc., of not less 
than 20 percent. In order to receive points, applicants must provide a 
statement in their applications to indicate that owners of the project 
have veteran status; or
    (b) Owned by a member of a socially-disadvantaged group, which are 
groups whose members have been subjected to racial, ethnic, or gender 
prejudice because of their identity as members of a group without 
regard to their individual qualities. In order to receive points, the 
application must include a statement to indicate that the owners of the 
project are members of a socially-disadvantaged group.
    (4) May allow for applications that further a Presidential 
initiative, or a Secretary of Agriculture priority, including Federally 
declared disaster areas, to receive additional points.
    (5) The proposed project is located in an impoverished area, has 
experienced long-term population decline or loss of employment.
    E. Other Submission Requirements. Grant-only applications, 
guaranteed loan-only applications, and combined grant and guaranteed 
loan applications for financial assistance may be submitted at any 
time. In order to be considered for funds, complete applications must 
be received by the appropriate USDA Rural Development State Office in 
which the applicant's proposed project is located, or via 
www.grants.gov, as identified in Section IV.C., of this Notice.
    (1) Insufficient funds. If funds are not sufficient to fund the 
total amount of an application:
    (a) For State allocated funds:
    (i) The applicant must be notified that they may accept the 
remaining funds or submit the total request for National Office reserve 
funds available after pooling. If the applicant agrees to lower its 
grant request, the applicant must certify that the purposes of the 
project will be met and provide the remaining total funds needed to 
complete the project.
    (ii) If two or more grant or combination applications have the same 
score and remaining funds in the State allocation are insufficient to 
fully award them, the Agency will notify the applicants that they may 
either accept the proportional amount of funds or submit their total 
request for National Office reserve funds available after pooling. If 
the applicant agrees to lower its grant request, the applicant must 
certify that the purposes of the project will be met and provide the 
remaining total funds needed to complete the project.
    (b) The applicant notification for national funds will depend on 
the competition as follows:
    (i) For an application requesting a grant of $20,000 or less or a 
combination application where the grant amount is $20,000 or less from 
set-aside pooled funds, the applicant must be notified that they may 
accept the remaining funds, or submit the total request to compete in 
the unrestricted state competition. If the applicant agrees to lower 
the grant request, the applicant must certify that the purposes of the 
project will be met and provide the remaining total funds needed to 
complete the project. A declined partial award counts as a competition.
    (ii) For an application requesting a grant of $20,000 or less or a 
combination application where the grant amount is $20,000 or less from 
unrestricted pooled funds, in which this is the final competition or 
for those applications requesting grants of over $20,000 and combined 
grant and guaranteed loan application, the applicant must be notified 
that they may accept the remaining funds or their grant application 
will be withdrawn. If the applicant agrees to lower the grant request, 
the applicant must certify that the purposes of the project will be met 
and provide the remaining total funds needed to complete the project.
    (iii) If two or more grant or combination applications have the 
same score and remaining funds are insufficient to fully award them, 
the Agency will notify the applicants that they may either accept the 
proportional amount of funds or be notified in accordance with 
V.D.(1)(b)(i) or (ii), as applicable.
    (iv) At its discretion, the Agency may instead allow the remaining 
funds to be carried over to the next FY rather than selecting a lower 
scoring application(s) or distributing funds on a pro-rata basis.
    (2) Award considerations. All award considerations will be on a 
discretionary basis. In determining the amount of a renewable energy 
system or energy efficiency improvements grant or loan guarantee, the 
Agency will consider the six criteria specified in 7 CFR 4280.114(e) or 
7 CFR 4280.129(g), as applicable.
    (3) Notification of funding determination. As per 7 CFR 4280.111(c) 
all applicants will be informed in writing by the Agency as to the 
funding determination of the application.

[[Page 40223]]

VI. Federal Award Administration Information

    A. Federal Award Notices. The Agency will award and administer 
renewable energy system and energy efficiency improvements grants, 
guaranteed loans in accordance with 7 CFR 4280.122, and 7 CFR 4280.139, 
as applicable. The Agency will award and administer the energy audit 
and renewable energy development assistance grants in accordance with 7 
CFR 4280.195. Notification requirements of 7 CFR 4280.111, apply to 
this Notice.
    B. Administrative and National Policy Requirements.
    (1) Equal Opportunity and Nondiscrimination. The Agency will ensure 
that equal opportunity and nondiscrimination requirements are met in 
accordance with the Equal Credit Opportunity Act, 15 U.S.C. 1691 et 
seq. and 7 CFR part 15d, Nondiscrimination in Programs and Activities 
Conducted by the U.S. Department of Agriculture. The Agency will not 
discriminate against applicants on the basis of race, color, religion, 
national origin, sex, marital status, or age (provided that the 
applicant has the capacity to contract); because all or part of the 
applicant's income derives from any public assistance program; or 
because the applicant has in good faith exercised any right under the 
Consumer Credit Protection Act, 15 U.S.C. 1601 et seq.
    (2) Civil Rights Compliance. Recipients of grants must comply with 
the Americans with Disabilities Act of 1990, 42 U.S.C. 12101 et seq., 
Title VI of the Civil Rights Act of 1964, 42 U.S.C. 2000d et seq., and 
Section 504 of the Rehabilitation Act of 1973, 29 U.S.C. 794. This may 
include collection and maintenance of data on the race, sex, and 
national origin of the recipient's membership/ownership and employees. 
These data must be available to conduct compliance reviews in 
accordance with 7 CFR 1901.204.
    (3) Environmental Analysis. Environmental procedures and 
requirements for this subpart are specified in 7 CFR part 1970. 
Prospective applicants are advised to contact the Agency to determine 
environmental requirements as soon as practicable after they decide to 
pursue any form of financial assistance directly or indirectly 
available through the Agency.
    (4) Appeals. A person may seek a review of an Agency decision or 
appeal to the National Appeals Division in accordance with 7 CFR 
4280.105.
    (5) Reporting. Grants, guaranteed loans, combination guaranteed 
loans and grants, and energy audit and energy audit and renewable 
energy development assistance grants that are awarded are required to 
fulfill the reporting requirements as specified in Departmental 
Regulations, the Grant Agreement, and in 7 CFR part 4280 subpart B and 
paragraphs VI.B.(5)(a) through (d) of this Notice.
    (a) Renewable energy system and energy efficiency improvements 
grants that are awarded are required to fulfill the reporting 
requirements as specified in 7 CFR 4280.123.
    (b) Guaranteed loan applications that are awarded are required to 
fulfill the reporting requirements as specified in 7 CFR 4280.143.
    (c) Combined guaranteed loan and grant applications that are 
awarded are required to fulfill the reporting requirements as specified 
in 7 CFR 4280.165(f).
    (d) Energy audit and renewable energy development assistance grants 
grant applications that are awarded are required to fulfill the 
reporting requirements as specified in 7 CFR 4280.196.

VII. Federal Awarding Agency Contacts

    For further information contact the applicable USDA Rural 
Development Energy Coordinator for your respective State, as identified 
via the following link: http://www.rd.usda.gov/files/RBS_StateEnergyCoordinators.pdf.
    For information about this Notice, please contact Anthony Crooks, 
Rural Energy Policy Specialist, USDA Rural Development, Energy 
Division, 1400 Independence Avenue SW, Stop 3225, Room 6870, 
Washington, DC 20250. Telephone: (202) 205-9322. Email: 
[email protected].

VIII. Other Information

A. Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995, the 
information collection requirements associated with renewable energy 
system and energy efficiency improvements grants and guaranteed loans, 
as covered in this Notice, have been approved by the Office of 
Management and Budget (OMB) under OMB Control Number 0570-0067 The 
information collection requirements associated with energy audit and 
renewable energy development assistance grants have also been approved 
by OMB under OMB Control Number 0570-0067.

B. Nondiscrimination Statement

    In accordance with Federal civil rights law and U.S. Department of 
Agriculture (USDA) civil rights regulations and policies, the USDA, its 
Agencies, offices, and employees, and institutions participating in or 
administering USDA programs are prohibited from discriminating based on 
race, color, national origin, religion, sex, gender identity (including 
gender expression), sexual orientation, disability, age, marital 
status, family/parental status, income derived from a public assistance 
program, political beliefs, or reprisal or retaliation for prior civil 
rights activity, in any program or activity conducted or funded by USDA 
(not all bases apply to all programs). Remedies and complaint filing 
deadlines vary by program or incident.
    Persons with disabilities who require alternative means of 
communication for program information (e.g., Braille, large print, 
audiotape, American Sign Language, etc.) should contact the responsible 
Agency or USDA's TARGET Center at (202) 720-2600 (voice and TTY) or 
contact USDA through the Federal Relay Service at (800) 877-8339. 
Additionally, program information may be made available in languages 
other than English.
    To file a program discrimination complaint, complete the USDA 
Program Discrimination Complaint Form, AD-3027, found online at http://www.ascr.usda.gov/complaint_filing_cust.html and at any USDA office or 
write a letter addressed to USDA and provide in the letter all of the 
information requested in the form. To request a copy of the complaint 
form, call (866) 632-9992. Submit your completed form or letter to USDA 
by:
    (1) Mail: U.S. Department of Agriculture, Office of the Assistant 
Secretary for Civil Rights, 1400 Independence Avenue SW, Washington, DC 
20250-9410;
    (2) Fax: (202) 690-7442; or
    (3) Email: [email protected].
    USDA is an equal opportunity provider, employer, and lender.

    Dated: August 8, 2018.
Bette B. Brand,
Administrator, Rural Business-Cooperative Service.
[FR Doc. 2018-17513 Filed 8-13-18; 8:45 am]
 BILLING CODE 3410-XY-P