[Federal Register Volume 85, Number 228 (Wednesday, November 25, 2020)]
[Notices]
[Pages 75284-75294]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-26086]


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DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service

[Docket No. RBS-20-BUSINESS-0037]


Inviting Applications for the Rural Energy for America Program

AGENCY: Rural Business-Cooperative Service, USDA.

ACTION: Notice of solicitation of applications.

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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) 2021 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 FY 2021. The 
Agency anticipates publishing a final rule for REAP later this year 
which will conform in part to the OneRD Guaranteed loan provisions 
published in the Federal Register on July 14, 2020 and will outline 
provisions as prescribed by the Agricultural Improvement Act of 2018 
(Pub. L. 115-334), (2018 Farm Bill). It is the Agency's intention that 
the final REAP rule will codify REAP scoring criteria as outlined in 
this NOSA. All REAP applications competing for FY 2021 funding will be 
scored according to the scoring criteria listed in this NOSA. 
Applicants who have already filed REAP applications for FY 2021 will be 
allowed to provide additional information necessary for application 
scoring, and the modification will not be treated as a new application 
nor will it alter the submission date of record as noted in 
4280.110(e). 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 program has two types of funding assistance: (1) Renewable 
Energy Systems, Energy Efficiency Improvements and Energy Efficient 
Equipment and Systems 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. The Energy Efficient Equipment and Systems Assistance 
provisions were prescribed by the 2018 Farm Bill and provide guaranteed 
loans only to agricultural producers to purchase and install energy 
efficient equipment and systems for agricultural production and

[[Page 75285]]

processing. Eligible renewable energy systems for REAP provide energy 
from: Wind, solar, renewable biomass (including anaerobic digesters and 
biogas), small hydro-electric, ocean, geothermal, or hydrogen derived 
from these renewable resources. Components and ancillary infrastructure 
of such renewable energy systems, such as a storage system, are also 
eligible.
    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 Deb Yocum, 
Business Loan and Grant Analyst, USDA Rural Development, Program 
Management Division. Telephone: (402) 499-1198. 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, Energy 
Efficiency Improvements and Energy Efficient Equipment and Systems 
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 
(including storage systems as prescribed by the 2018 Farm Bill) and 
energy efficiency improvements. The Energy Efficient Equipment and 
Systems provides guaranteed loans to agricultural producers to purchase 
and install energy efficient equipment and systems for agricultural 
production and processing. Eligible renewable energy systems for REAP 
provide energy from: Wind, solar, renewable biomass (including 
anaerobic digesters and biogas), 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 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.
    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 2018 Farm Bill, and any appropriated funds that REAP 
may receive from the appropriation for FY 2021 for grants, guaranteed 
loans, and combined grants and guaranteed loans to purchase and install 
renewable energy systems, make energy efficiency improvements, and 
install energy efficient equipment and systems for agricultural 
production and processing; and for grants to conduct energy audits and 
renewable energy development assistance.
    The NOSA announces the acceptance of applications under REAP for FY 
2021 for grants, guaranteed loans, and combined grants and guaranteed 
loans for the development of renewable energy systems, energy 
efficiency projects, and energy efficient equipment and systems for 
agricultural production and processing as provided by the 2018 Farm 
Bill. The Notice also announces the acceptance of applications under 
REAP for FY 2021 for energy audit and renewable energy development 
assistance grants as provided by the 2018 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 for grant requests and combination grant and guaranteed 
loan, and in 7 CFR part 5001 for guaranteed loan only requests. 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 for guaranteed loans for renewable energy 
systems, energy efficiency improvements, and energy efficient equipment 
and system projects are specified in 7 CFR part 5001. For FY 2021, the 
guarantee fee rates, the annual renewal fee, the maximum percentage of 
guarantee and the maximum portion of guarantee authority available for 
a reduced guarantee fee will be published in a separate notice.
    (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. Federal Agency. Rural Business-Cooperative Service.
    B. Funding Opportunity Title: Rural Energy for America Program.
    C. Announcement Type: Initial Notice.
    D. Catalog of Federal Domestic Assistance (CFDA) Number. 10.868.
    E. Funds Available. This Notice is announcing deadline times and 
dates for applications to be submitted for REAP funds provided by the 
2018 Farm Bill and any appropriated funds that REAP may receive from 
the congressional enactment of a full-year appropriation for FY 2021. 
This Notice is being published prior to the congressional enactment of 
a full-year appropriation for FY 2021. The Agency

[[Page 75286]]

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 
2021 funds until June 30, 2021, 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, which includes 
combination grant and guaranteed loan requests where the grant amount 
requested is $20,000 or less, 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 set-aside 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, energy efficiency improvements, and 
energy efficient equipment and systems loan guarantee funds. Rural 
Development's National Office will maintain a reserve of guaranteed 
loan funds. Energy efficient equipment and systems for agricultural 
production and processing guaranteed loans shall not exceed 15 percent 
of the funds available to the program.
    (3) Renewable energy system and energy efficiency improvements 
combined grant and guaranteed loan funds. Funding availability for 
combined grant and guaranteed loan applications is 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 2021 will be 4 percent of FY 2021 
mandatory funds and will be maintained in a National Office reserve. 
Obligations of these funds will take place through March 30, 2021. 
After that date, 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.
    F. 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 2021. However, it will depend 
on the actual amount of funds made available and on the number of 
eligible applicants participating in this program.
    G. 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 in 7 CFR part 5001 and are summarized in this Notice. Failure to 
meet the eligibility criteria by the time of the competition window 
will preclude the application from competing until all eligibility 
criteria have been met.
    The Agriculture Improvement Act of 2018, Public Law 115-334, (the 
2018 Farm Bill) required USDA to promulgate regulations and guidelines 
to establish and administer a program for the production of hemp in the 
United States. Prior to the 2018 Farm Bill, state departments of 
agriculture and institutions of higher learning were permitted to 
produce hemp as part of a pilot program for research purposes pursuant 
to the Agricultural Act of 2014, Public Law 113-79, (the 2014 Farm 
Bill). The 2018 Farm Bill extended this 2014 Farm Bill pilot program 
authority until October 31, 2020.
    In determining eligibility for the applicant, project or use of 
funds, any project applying for funding under the REAP Program and 
proposing to produce, procure, supply or market any component of the 
hemp plant or hemp related by-products, or provide technical assistance 
related to such products, must have a valid license from an approved 
State, Tribal or Federal plan pursuant to Section 10113 of the 2018 
Farm Bill, be in compliance with regulations published by the 
Agricultural Marketing Service at 7 CFR part 990, and meet any 
applicable FDA and DEA regulatory requirements. Verification of valid 
Hemp licenses will occur prior to award. In addition, all projects 
proposing to use biomass feedstock from any part of the hemp plant must 
demonstrate assurance of an adequate supply of the feedstock.
    Given the upcoming expiration of the 2014 Farm Bill authority as 
well as the absence of Federal oversight or regulations governing the 
2014 Farm Bill pilot program, Rural Development will not award funds to 
any project proposing to produce, procure, supply or market any 
component of the hemp plant or hemp related by-products, or provide 
technical assistance related to such products, produced under 2014 Farm 
Bill authority.
    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, and for guaranteed loans for the 
purchase and installation of energy efficient equipment and systems for 
agricultural production and processing.
    This solicitation is also for applications for Energy Audit or 
Renewable Energy 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.
    To be eligible for the guaranteed loan portion of the program, a 
borrower must meet the requirements specified in 7 CFR 5001.126.
    B. Eligible Lenders and Borrowers. To be eligible for the 
guaranteed loan portion of the program, lenders and borrowers must meet 
the eligibility requirements in 7 CFR 5001.126 and 5001.130, 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 or 7 CFR 5001.102 and 7 
CFR 5001.106 through 5001.108, as applicable.
    D. Cost Sharing or Matching. The 2018 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 systems, energy efficiency improvements, and 
energy

[[Page 75287]]

efficient equipment and systems for agricultural production and 
processing 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. Energy efficient equipment and systems for 
agricultural production and processing is limited to only guaranteed 
loan funding.
    (2) Energy audit and renewable energy development funds. Recipients 
of energy audit grants must require the agricultural producer or rural 
small business being audited to pay at least 25 percent of the cost of 
the energy audit. These funds should be accounted for in the project 
budget submitted with the application. 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 being expended by January 31, 2021. 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 are defined at 7 CFR 4280.114 
(d), 7 CFR 4280.129(f), and 7 CFR 4280.188(c), as applicable and 7 CFR 
5001.115 and 7 CFR 5001.119, as applicable.
    The U.S. Department of Agriculture Departmental Regulations and 
Laws that contain other compliance requirements are referenced in 
paragraphs IV.F and VI.B.(1) through (3) 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, 7 CFR part 4280, subpart B and 7 CFR part 5001, as 
applicable. 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 as (i) hard copy (ii) 
electronically to the appropriate Rural Development ``Energy 
Coordinator in the State in which the applicant's proposed project is 
located, or (iii) via the Government-wide www.grants.gov website.
    (i) Applicants must submit one original, hardcopy or electronic, 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 
the 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, 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 financial assistance 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 at 7 CFR 5001.303 and 
5001.307.
    (b) All guaranteed loan applications must be submitted either as 
hard copy or electronically 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 5001.452.
    (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 at 7 CFR 
4280.165(c), 7 CFR 5001.301 through 5001.303, and 7 CFR 5001.307.
    (b) All combined guaranteed loan and grant applications must be 
submitted either as hard copy or electronically 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.

[[Page 75288]]

    (c) After successful applicants are notified of the intent to make 
a Federal award, applicants must meet the requirements, including the 
requisite forms, specified in 7 CFR 4280.117, 4280.118, 4280.119, 
4280.137, and 7 CFR 5001.451 through 5001.452, as applicable, for the 
issuance of a financial assistance 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 or electronically to 
the appropriate Rural Development Energy Coordinator in the State in 
which the applicant's proposed project is located, or via the 
Government-wide www.grants.gov website.
    (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 financial assistance agreement to be executed.
    5. Dun and Bradstreet Universal Numbering System (DUNS) Number and 
System for Award Management (SAM).
    To be eligible (unless you are excepted under 2 CFR 25.110(b), or 
(d)), you are required to:
    (a) Provide a valid DUNS number in your application, which can be 
obtained at no cost via a toll-free request line at (866) 705-5711;
    (b) Register in SAM before submitting your application. You may 
register in SAM at no cost at https://www.sam.gov/SAM. You must provide 
your SAM CAGE Code and expiration date. When registering in SAM, you 
must indicate you are applying for a Federal financial assistance 
project or program or are currently the recipient of funding under any 
Federal financial assistance project or program, and
    (c) The SAM registration must remain active with current 
information at all times while RBCS is considering an application or 
while a Federal grant award is active. To maintain the registration in 
the SAM database the applicant must review and update the information 
in the SAM database annually from date of initial registration or from 
the date of the last update. The applicant must ensure that the 
information in the database is current, accurate, and complete. 
Applicants must ensure they complete the Financial Assistance General 
Certifications and Representations in SAM.
    If you have not fully complied with all applicable DUNS and SAM 
requirements, the Agency may determine that the applicant is not 
qualified to receive a Federal award and the Agency may use that 
determination as a basis for making an award to another applicant. The 
Agency can accept an application, hardcopy or electronic, without a 
DUNS number or an active SAM registration. However, the DUNS number and 
active SAM registration must be completed before an award is made.
    C. Submission Dates and Times. Grant applications, guaranteed loan-
only applications, and combined grant and guaranteed loan applications 
for financial assistance provided by the 2018 Farm Bill, and for 
appropriated funds that REAP may receive from the appropriation for FY 
2021, 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. Unsuccessful applications are 
addressed in section V, Application Review Information. 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 2021 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, applications are accepted 
year-round. Application deadlines for FY 2021 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, 2020, or
    (ii) 4:30 p.m. local time on March 31, 2021.
    (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 March 31, 2021.
    (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, 2021.

--------------------------------------------------------------------------------------------------------------------------------------------------------
            Application                           Application window opening dates                          Application window closing dates
--------------------------------------------------------------------------------------------------------------------------------------------------------
Renewable Energy Systems and Energy  April 16, 2020...........................................  October 31, 2020
 Efficiency 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).
Renewable Energy Systems and Energy  November 1, 2020.........................................  March 31, 2021 *
 Efficiency 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  April 16, 2020...........................................  March 31, 2021 *
 Efficiency Improvements Grants
 (Unrestricted grants, including
 combination grant and guaranteed
 loan where the grant request is
 greater than $20,000).

[[Page 75289]]

 
Renewable Energy Systems, Energy     Continuous application cycle.............................  Continuous application cycle.
 Efficiency Improvements, and
 Energy Efficient Equipment and
 Systems Guaranteed Loans.
Energy Audit and Renewable Energy    February 1, 2020.........................................  January 31, 2021
 Development 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 2021. For the 
purposes of this Notice, the maximum amount of grant assistance to an 
entity will not exceed $750,000 for FY 2021 based on the total amount 
of the renewable energy system, and energy efficiency improvements 
grants awarded to an entity under REAP.
    (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 total eligible project costs, with any Federal 
grant portion not to exceed 25 percent of the 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 assistance 
grants.
    (a) Applicants may submit only one energy audit grant application 
and one renewable energy development assistance grant application for 
FY 2021 funds. Separate applications must be submitted for energy audit 
and renewable energy development assistance per 7 CFR 4280.190(a).
    (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 2021.
    (c) The 2018 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.
    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) 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.
    (3) 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 
application 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.
    (4) 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 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 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.
    (c) Complete renewable energy systems and energy efficiency 
improvements grant applications, regardless of the amount of funding 
requested, are eligible to compete in two competitions during 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 5001.315.
    (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

[[Page 75290]]

applications where the grant request is greater than $20,000, are 
eligible to compete in two competitions during 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, it is the intent of the Agency that sections 
C through K below replace scoring criteria text found in 7 CFR 
4280.120, and that the final REAP rule will codify REAP scoring 
criteria as outlined in this NOSA.
    (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 
(renumbered as 4280.121 in the final REAP rule) and sections C through 
K of this Notice 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. If a complete 
application is on file as of the date of this publication, the 
applicant will be allowed to provide additional information necessary 
to address new application scoring criteria requirements without 
creating a new complete application date.
    (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 March 31, 2021, in order to 
be considered for these set-aside funds. Approximately 50 percent of 
these funds will be made available for those complete applications that 
the Agency receives by October 31, 2020, and approximately 50 percent 
of the funds for those complete applications that the Agency receives 
by March 31, 2021. All unused State allocated funds for grants of 
$20,000 or less will be pooled to the National Office.
    (b) Eligible applications received by March 31, 2021, 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 30, 2021.
    (c) Eligible applications for renewable energy system and energy 
efficiency improvements, regardless of the amount of the funding 
request, received by March 31, 2021, 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) Eligible renewable energy system and energy efficiency 
improvements unrestricted grant applications received by March 31, 2021 
that are not funded by State allocations can be submitted to the 
National Office to compete against unrestricted grant applications from 
other States at a national competition. Unfunded grants of $20,000 or 
less may also compete in this national competition.
    (2) Renewable energy systems, energy efficiency improvements, and 
energy efficient equipment and systems for agricultural production and 
processing guaranteed loan applications. Renewable energy systems, 
energy efficiency improvements, and energy efficient equipment and 
systems for agricultural production and processing guaranteed loan 
applications will be scored in accordance with 7 CFR 5001.319, and 
selections will be made in accordance with 7 CFR 5001.315. The National 
Office will maintain a reserve for renewable energy system, energy 
efficiency improvements, and energy efficient equipment and systems for 
agricultural production and processing guaranteed loan funds. 
Applications will be reviewed and processed when received. Those 
applications that meet the Agency's underwriting requirements and are 
credit worthy will compete in national competitions for guaranteed loan 
funds periodically. 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 March 31, 2021, 
and that are not funded by 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, 2021, 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

[[Page 75291]]

from the National Office reserve after pooling.
    C. Scoring Criteria.
    (1) Environmental Benefits. A maximum of 5 points will be awarded 
for this criterion based on whether the applicant has documented in the 
application that the proposed project will have a positive effect on 
resource conservation (e.g., water, soil, forest), public health (e.g., 
potable water, air quality), and the environment (e.g., compliance with 
EPA's renewable fuel standard(s), greenhouse gases, emissions, 
particulate matter). If the project will have a positive impact on:
    (a) Any one of the three impact areas, 1 point will be awarded.
    (b) Any two of the three impact areas, 3 points will be awarded.
    (c) All three impact areas, 5 points will be awarded.
    (2) Energy generated, replaced, or saved. A maximum of 25 points 
will be awarded for this criterion. Applications for RES and EEI 
projects are eligible for points under both paragraphs (a) and (b) 
below.
    (a) Quantity of energy generated or saved per REAP grant dollar 
requested. A maximum of 10 points will be awarded for this sub-
criterion. For RES and EEI projects, points will be awarded for either 
the amount of renewable energy generation per grant dollar requested, 
which includes those projects that are replacing energy usage with a 
renewable source; or the actual annual average energy savings over the 
most recent 12, 24, 36, 48, or 60 consecutive months of operation per 
grant dollar requested. Points will not be awarded for more than one 
category.
    (i) RES. The quantity of energy generated or replaced per grant 
dollar requested will be determined by dividing the projected total 
annual energy generated or replaced by the RES or RES retrofit (minus 
energy for residential use), which will be converted to BTUs, by the 
grant dollars requested. Points will be awarded based on the annual 
amount of energy generated or replaced (minus energy for residential 
use) per grant dollar requested for the proposed RES project. The 
Agency will award up to 10 points as determined using paragraphs 
(2)(a)(i)(A) and (B) of this section. If the annual amount of energy 
generated or replaced per grant dollar requested is:
    (A) 50,000 BTUs average annual energy generated or replaced per 
grant dollar requested or higher, 10 points will be awarded; or
    (B) Less than 50,000 BTUs annual energy generated or replaced per 
grant dollar requested, points will be awarded according to the results 
of taking the energy generated or replaced per grant dollar requested/
50,000 x 10 points. The points awarded are rounded to the nearest 
hundredth of a point.
    (ii) EEI. The Agency will award up to 10 points under this sub-
criterion based on the average annual energy saved per grant dollar 
requested for the EEI project. The Agency will award up to 10 points as 
determined under paragraph (2)(a)(ii)(A) and (B) of this section. If 
the average annual energy saved per grant dollar requested is:
    (A) 50,000 BTUs average annual energy saved per grant dollar 
requested or higher, 10 points will be awarded; or
    (B) Less than 50,000 BTUs average annual energy saved per grant 
dollar requested, points will be awarded according to the result of 
taking the energy saved per grant dollar requested/50,000 x 10 points. 
The points awarded are rounded to the nearest hundredth of a point.
    (b) Scoring Criteria Quantity of energy replaced, generated, or 
saved. A maximum of 15 points will be awarded for this sub-criterion. 
Points will be awarded on the basis of whether the project is for 
energy replacement, energy savings, or energy generation; points will 
not be awarded for more than one category.
    (i) Energy replacement. The Agency will award points under this 
sub-criterion for a RES project based on the amount of energy replaced 
by the project compared to the amount of energy used by the applicable 
process(es) over a 12-month period. If the estimated energy produced is 
more than 150 percent of the energy used by the applicable process(es), 
the project will be scored as an energy generation project under 
paragraph (2)(b)(ii) of this section.
    (A) Documentation for energy replacement. For a RES project to 
qualify as energy replacement, the applicant must provide documentation 
in its application on prior energy use incurred by the applicant. 
Proposed energy use, such as that attributed to an expansion, is not 
considered in the replacement calculation. For a RES project involving 
new construction and being installed to serve the new facility, the 
project can be classified as energy replacement only if the applicant 
can document prior energy use from a facility that is within plus or 
minus 10 percent of the size of the facility it is replacing. The 
estimated quantities of energy must be converted to either BTUs, watts, 
or similar energy equivalents to facilitate scoring.
    (B) Calculation. Energy replacement is determined by dividing the 
quantity of renewable energy that the RES project is estimated would 
have been generated if it were in place over the most recent 12-month 
period by the quantity of energy actually consumed over the same period 
by the applicable energy process(es) that is(are) consuming energy.
    (C) Awarding of points. Using the results from paragraph 
(2)(b)(i)(B) of this section, if the percentage of energy replacement 
is:
    (1) Greater than 50 percent, 15 points will be awarded;
    (2) Greater than 25 percent, but equal to or less than 50 percent, 
10 points will be awarded; or
    (3) Equal to or less than 25 percent, 5 points will be awarded.
    (ii) Energy generation. If the proposed RES is intended for 
production of energy or is a proposed retrofitting of an existing RES 
which increases the amount of energy generated, the Agency will award 
10 points.
    (iii) Energy saved. The Agency will award up to 15 points under 
this sub-criterion for an EEI project based on the percentage of 
estimated energy saved by the installation of the project as determined 
by the projections in the applicable energy assessment or energy audit. 
If the estimated energy expected to be saved over the same period used 
in the energy assessment or energy audit, as applicable, will be:
    (A) 50 percent or greater, 15 points will be awarded;
    (B) 35 percent up to, but not including 50 percent, 10 points will 
be awarded;
    (C) 20 percent up to, but not including 35 percent, 5 points will 
be awarded; or
    (D) Less than 20 percent, no points will be awarded.
    (c) Scoring Criteria Commitment of funds. A maximum of 15 points 
will be awarded for this criterion based on the percentage of written 
commitment an applicant has from its fund sources that are documented 
with a complete application.
    (i) Calculation. The percentage of written commitment is calculated 
as follows: Percentage of written commitment = total amount of funds 
for which written commitments have been submitted with the application/
total amount of matching funds and other funds required.
    (ii) Awarding of points. Using the result from paragraph (E)(1) of 
this section, the Agency will award points as shown in paragraphs 
(E)(2)(i) through (iii) of this section.
    (A) If the percentage of written commitments is 100 percent of the 
matching funds, 15 points will be awarded.
    (B) If the percentage of written commitments is less than 100 
percent, but more than 50 percent, points will be

[[Page 75292]]

awarded as follows: ((Percentage of written commitments - 50 percent)/
(50 percent)) x 15 points, where points awarded are rounded to the 
nearest hundredth of a point.
    (C) If the percentage of written commitments is 50 percent or less, 
no points will be awarded.
    (d) Scoring Criteria Previous grantees and borrowers. A maximum of 
15 points will be awarded for this criterion based on whether the 
applicant has received and accepted a REAP grant award or guaranteed 
loan commitment under 7 CFR part 4280 of this title or a guaranteed 
loan commitment under either this part or 7 CFR part 5001 of this 
title.
    (i) If the applicant has never received and accepted a grant award 
or a guaranteed loan commitment under either this part or 7 CFR part 
5001 of this title, 15 points will be awarded.
    (ii) If the applicant has not received and accepted a grant award 
or guaranteed loan commitment under this subpart, or a guaranteed loan 
commitment under 7 CFR part 5001 of this title within the 2 previous 
Federal fiscal years, 10 points will be awarded.
    (iii) If the applicant has received a grant award or guaranteed 
loan commitment under this subpart, or a guaranteed loan commitment 
under 7 CFR part 5001 of this title within the 2 previous Federal 
fiscal years, no points will be awarded.
    (e) Scoring Criteria Existing business. A maximum of 5 points will 
be awarded for an existing agricultural producer business or rural 
small business that meets the definition of existing business in 7 CFR 
5001.3 and noted below.
    Existing business means a business that has been in operation for 
at least 1 full year. The following will be treated as existing 
businesses provided there is not a significant change in operations of 
the existing business: Mergers by an existing business with a new or 
existing business, a change in the business name, or a new business and 
an existing business applying as co-applicants.
    (f) Scoring Criteria Simple payback. A maximum of 15 points will be 
awarded for this criterion based on the simple payback of the project 
as defined in 7 CFR 5001.3 and as described below. Points will be 
awarded for either RES or EEI; points will not be awarded for more than 
one category.
    The estimated simple payback of a project funded under this part as 
calculated using paragraphs (i) or (ii), as applicable, of this 
definition.
    (i) EEI projects simple payback = (total project costs) / (dollar 
value of energy saved).
    (A) Energy saved will be determined by subtracting the projected 
energy (determined by the method in paragraph (i)(A)(2) of this 
definition) to be consumed from the historical energy consumed 
(determined by the method in paragraph (i)(A)(1) of this definition), 
and converting the result to a monetary value using a constant value or 
price of energy (determined by the method in paragraph (i)(A)(3) of 
this definition).
    (1) Actual energy used in the original building and/or equipment, 
as applicable, prior to the EEI project, must be based on the actual 
average annual total energy used in British thermal units (BTU) over 
the most recent 12, 24, 36, 48, or 60 consecutive months of operation. 
Attach utility bills to document applicant entity's historical energy 
consumption quantity.
    (2) Projected energy use if the proposed EEI project had been in 
place for the original building and/or equipment, as applicable, for 
the same time period used to determine that actual energy use under 
paragraph (i)(A)(1) of this definition.
    (3) Value or price of energy must be the actual average price paid 
over the same time period used to calculate the actual energy used 
under paragraph (i)(A)(1) of this definition. When calculating the 
actual average price of energy, only include energy charges directly 
reduced by the unit of energy being replaced or saved. Attach utility 
bills to document applicant entity's average price of energy.
    (B) The EEI projects simple payback calculation does not allow 
applicants to monetize EEI benefits other than the dollar amount of the 
energy savings the agricultural producer or rural small business 
realizes as a result of the improvement.
    (ii) RES projects simple payback = (total project costs) / (dollar 
value of energy units replaced, credited, sold, or used and fair market 
value of byproducts as applicable in a typical year).
    (A) Value of energy replaced will be calculated based on the 
applicant entity's historical energy consumption with actual average 
price paid for the energy replaced, following the methodology outlined 
in paragraph (i)(A) of this definition.
    Attach utility bills to document applicant entity's historical 
energy consumption quantity and actual average price of energy.
    (B) Value of energy credited or sold will be calculated based on 
the amount of energy units to be credited or sold at the proposed rate 
per unit, as documented in utility net metering or crediting policies 
and/or a power purchase agreement. Attach utility net metering or 
crediting policies and/or a power purchase agreement to document energy 
quantity and proposed rate for energy credited or sold.
    (C) If proposed energy will be used in a new facility, value of 
energy used will be calculated based on the amount of energy units to 
be used at the documented price per unit of conventional fuel 
alternative. Attach documentation of market price per unit of 
conventional fuel alternative.
    (D) Value of byproducts produced by and used in the project or 
related enterprises should be documented at the fair market value to be 
received for the byproducts in a typical year. Attach documentation of 
market value price to be received for byproducts and documentation to 
support byproduct sales or direct use.
    (E) The RES projects simple payback calculation does not include 
any one-time benefits such as but not limited to construction and 
investment-related benefits, nor credits which do not provide annual 
income to the project, such as tax credits.
    (iii) RES. If the simple payback of the proposed project is:
    (A) Less than 10 years, 15 points will be awarded;
    (B) 10 years up to but not including 15 years, 10 points will be 
awarded;
    (C) 15 years up to and including 25 years, 5 points will be 
awarded; or
    (D) Longer than 25 years, no points will be awarded.
    (iv) EEI. If the simple payback of the proposed project is:
    (A) Less than 4 years, 15 points will be awarded;
    (B) 4 years up to but not including 8 years, 10 points will be 
awarded;
    (C) 8 years up to and including 12 years, 5 points will be awarded; 
or
    (D) Longer than 12 years, no points will be awarded.
    (g) Scoring Criteria Size of request. For grant applications 
requesting less than $250,000 for RES, or less than $125,000 for EEI, 
an additional 10 points may be awarded such that a maximum score of 100 
points is possible. All other applications will have a maximum possible 
score of 90 points.
    (h) Scoring Criteria Size of Agricultural Producer or Rural Small 
Business. In alignment with the October 21, 2017 Report to the 
President of the United States from the Task Force on Agriculture and 
Rural Prosperity, it is RBCS's intent that 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

[[Page 75293]]

concern, as applicable, compared to the SBA Small Business size 
standards categorized by NAICS found in 13 CFR 121.201, be removed for 
applications for renewable energy systems or energy efficiency 
improvements as part of the forthcoming REAP rule, that should be in 
effect at the time funding decisions will be made.
    (i) Scoring Criteria 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 (i) through 
(vi) below in the awarding of up to 10 points for eligible renewable 
energy systems and energy efficiency improvement grant applications 
submitted in FY 2021:
    (i) May allow for applications for an under-represented technology 
to receive additional points.
    (ii) 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.
    (iii) 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.
    (iv) May allow for applications that further a Presidential 
initiative, or a Secretary of Agriculture priority.
    (v) The proposed project is located in a Federally declared 
disaster area. Declarations must be within the last 2 calendar years.
    (vi) The proposed project is located in an area where 20 percent or 
more of its population is living in poverty, as defined by the United 
States Census Bureau, is an underserved community(ies) or has 
experienced long-term population decline, or loss of employment.
    D. 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 the 
www.grants.gov website 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 any application competing in the final national office 
unrestricted pooling, 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 submit their total request in the next 
available competition. If not awarded in the final fiscal year 
competition their application will be withdrawn.
    (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) 
and 5001.315 (b)(2), all applicants will be informed in writing by the 
Agency as to the funding determination of the application.

VI. Federal Award Administration Information

    A. Federal Award Notices. The Agency will award and administer 
renewable energy system and energy efficiency improvements grants, and 
combined grant and guaranteed loan requests in accordance with 7 CFR 
4280.122 and 7 CFR 4280.165, as applicable. The Agency will award and 
administer the renewable energy system, energy efficiency improvements, 
and energy efficiency equipment and system guaranteed loan requests in 
accordance with 7 CFR 5001.315. 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

[[Page 75294]]

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. 
This 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 and 7 CFR 5001.5, as applicable.
    (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 Financial Assistance Agreement, and in 7 CFR part 4280 
subpart B.
    (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 5001.501 
through 5001.524
    (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 Deb Yocum, 
Business Loan and Grant Analyst, USDA Rural Development, Program 
Management Division. Telephone: (402) 499-1198. 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 How to 
File a Program Discrimination Complaint 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; or

(2) Email: [email protected].

    USDA is an equal opportunity provider, employer, and lender.

Rebeckah Adcock,
Administrator, Rural Business-Cooperative Service.
[FR Doc. 2020-26086 Filed 11-24-20; 8:45 am]
BILLING CODE 3410-XY-P