[Federal Register Volume 84, Number 84 (Wednesday, May 1, 2019)]
[Notices]
[Pages 18475-18476]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-08796]


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DEPARTMENT OF AGRICULTURE

Rural Utilities Service


Announcement of Loan Applications Procedures and Deadlines for 
the Rural Energy Savings Program (RESP); Update

AGENCY: Rural Utilities Service, USDA.

ACTION: Notice.

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SUMMARY: The Rural Utilities Service (RUS), a Rural Development agency 
of the United States Department of Agriculture, published a Notice of 
Funding Availability (NOFA) in the Federal Register on Monday, August 
6, 2018 (83 FR 38273) announcing funding availability, soliciting 
letters of intent for loan applications, outlining the application 
process for those loans, and setting forth deadlines for applications 
from eligible entities under the Rural Energy Savings Program (RESP). 
Since the publication of the NOFA, the Agriculture Improvement Act of 
2018 (2018 Farm Bill) became law on December 20, 2018, and included 
statutory changes affecting RESP. The purpose of this notice is to 
inform the public of changes made to RESP pursuant to section 6303 of 
the Farm Bill.

DATES: Effective May 1, 2019 and remaining in effect until further 
notice or publication of a regulation.

FOR FURTHER INFORMATION CONTACT: Robert Coates, Engineering Branch, 
Office of Loan Origination and Approval, 1400 Independence Avenue SW, 
Stop 1567, (Room 0221), Washington, DC 20250-1567. Telephone: (202) 
260-5415. Email: [email protected].

SUPPLEMENTARY INFORMATION: RUS is amending the funding availability and 
solicited letters of intent for loan applications under RESP in the 
Federal Register on Monday, August 6, 2018 (83 FR 38273). Since the 
publication of the NOFA, the Agriculture Improvement Act of 2018, (2018 
Farm Bill) became law (Pub. L. 115-334) which included statutory 
changes to the RESP statute (7 U.S.C. 8107a). The following changes 
became effective on the date of enactment of the Agriculture 
Improvement Act of 2018 (December 20, 2018):
    1. Cost-effective on-or off grid renewable energy is added to the 
list of eligible energy efficiency measures;
    2. cost-effective storage systems is added to the list of eligible 
energy efficiency measures;
    3. the maximum permitted interest rate that can be charged by a 
borrower

[[Page 18476]]

to a qualified consumer is raised from 3% to 5%; and
    4. recurring service bills were added as approved methods of 
repayment of RESP loans by Qualified consumers to RESP borrowers (the 
previous statutory language only allowed repayment through the electric 
service bill).
    5. Additionally, the 2018 Farm Bill included new legislative 
language that directs the Agency not to consider any debt incurred by a 
borrower under this program in the calculation of the debt-equity ratio 
of the borrower for purposes of eligibility for loans under the Rural 
Electrification Act of 1936 (7 U.S.C. 901 et seq.).
    All new and pending RESP letters of intent as well as all new and 
pending RESP loan applications will be reviewed consistent with the new 
statutory provisions. Requests to modify previously approved RESP loan 
agreements consistent with the new statutory provisions and other 
relevant law will be considered on a case-by-case basis where RESP 
funds have not been advanced.
    Applicants may amend their application and reapply if they were 
denied under the existing NOFA of August 6, 2018 (83 FR 38273) or not 
invited to proceed in the application process if the new statutory 
provisions apply to their energy efficiency proposal. Such amendments 
will not interrupt continued acceptance of applications. The current 
NOFA provided for a first come, first served process, and this process 
will continue, and any reapplications will move into line with the 
reapplication date.
    In the Federal Register on August 6, 2018 (83 FR 38273) make the 
following correction:

Summary of Changes

    1. On page 38275, in the second column, under section A. Program 
Description, revise the fourth sentence to read as follows:
    Loans made by RESP borrowers under this program may be repaid 
through charges added to the Qualified consumer's recurring service 
bill for the property or properties for, or at which, energy 
efficiencies are or will be implemented.
    2. On page 38279, in the second column, under d. EE Program 
Compliance, second paragraph, revise the second sentence to read as 
follows:
    Nonetheless, under no circumstances will the RESP borrower be able 
to charge more than 5 percent interest rate to its customers.
    3. On page 38279, in the second column, under section d. EE Program 
Compliance, revise the first sentence in the third paragraph to read as 
follows:
    Qualified consumers must ordinarily repay their loans to the RESP 
borrower through charges added by the RESP borrower to the consumer's 
recurring service bill associated with the property where the energy 
efficiency measures are or will be implemented.
    4. On page 38280, in the second column, under the B. Variable 
frequency drive section, revise (ix) to read as follows:
    Efficient cost-effective on- or off-grid renewable energy systems 
if consistent with the statutory purpose of RESP.
    5. On page 38280, in the second column, under B. Variable frequency 
drive section, revise (x) to read as follows:
    Efficient cost-effective energy storage systems if permanently 
installed to reduce the energy cost or usage of small businesses and 
families within a rural area.

Chad Rupe,
Acting Administrator, Rural Utilities Service.
[FR Doc. 2019-08796 Filed 4-30-19; 8:45 am]
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