[Federal Register Volume 86, Number 140 (Monday, July 26, 2021)]
[Notices]
[Pages 40000-40003]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-15785]


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DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service

[Docket No. RBS-21-BUSINESS-0024]


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) announces the acceptance of grant, 
guaranteed loan, and combined grant and guaranteed loan applications 
under the Rural Energy for America Program (REAP). The REAP program 
helps agricultural producers and rural small businesses reduce energy 
costs and consumption and helps meet the Nation's critical energy 
needs. Applications for REAP may be submitted at any time throughout 
the year. This notice announces the deadlines, dates, and times that 
applications must be received in order to be considered for federal 
Fiscal Year (FY) 2022 REAP funds. The NOSA is being issued prior to 
passage of a final appropriations act for FY22 to allow potential 
applicants time to submit applications for financial assistance under 
the program and to give the Agency time to process applications within 
the current FY. 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. All REAP applications 
competing for FY22 funding will be scored according to the scoring 
criteria listed in the final REAP rule. Applicants who have already 
filed REAP applications for FY22 will be allowed to provide additional 
information if necessary for application scoring; the modification will 
not be treated as a new application nor will it alter the submission 
date of record.

DATES: Applications for the Energy Audit and Renewable Energy 
Development Assistance (EA/REDA) grant program must be submitted via 
www.grants.gov or to Rural Development offices by no later than 4:30 
p.m. local time on January 31, 2022. Applications for the Renewable 
Energy Systems and Energy Efficiency Improvements (RES/EEI) grant 
program must be submitted via www.grants.gov or to Rural Development 
offices by no later than 4:30 p.m. local time on October 31, 2021 to 
compete for 50 percent FY22 set-aside funding and by no later than 4:30 
p.m. local time on March 31, 2022 to compete for remaining FY22 RES/EEI 
grant funds. RES/EEI and Energy Efficient Equipment and Systems (EEE) 
guaranteed loan applications are competed on an ongoing basis. See 
table in Section IV.D. for details on REAP competitions.

ADDRESSES: You are encouraged to contact your USDA Rural Development 
State Energy Coordinator well in advance of the application deadline to 
discuss your project and ask any questions about the application 
process. Contact information for Energy Coordinators can be found at 
https://rd.usda.gov/files/RBS_StateEnergyCoordinators.pdf.
    Program guidance and application forms may be obtained at https://rd.usda.gov/programs-services/all-programs/energy-programs. To submit 
an electronic application via grants.gov, follow the instructions for 
the REAP funding announcement located at https://www.grants.gov.

FOR FURTHER INFORMATION CONTACT: Deb Yocum, Program Management 
Division, Rural Business-Cooperative Service, United States Department 
of Agriculture, 2920 East Court Street, Suite 3, Beatrice, NE 68310, 
402-499-1198 or email [email protected].

SUPPLEMENTARY INFORMATION:

Overview

    Federal Agency: Rural Business-Cooperative Service.
    Funding Opportunity Title: Rural Energy for America Program.
    Announcement Type: Initial notice.
    Catalog of Federal Domestic Assistance (CFDA) Number: 10.868.
    Type of Instrument: Grant, guaranteed loan, and grant and 
guaranteed loan combined funding.
    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 the FY. The number of awards will 
depend on the actual amount of funds made available and on the number 
of eligible applicants participating in this program.
    Administrator: The Agency encourages applicants to consider 
projects that will advance the following key priorities:
     Assisting Rural communities recover economically from the 
impacts of the COVID-19 pandemic, particularly disadvantaged 
communities.
     Ensuring all rural residents have equitable access to RD 
programs and benefits from RD funded projects.
     Reducing climate pollution and increasing resilience to 
the impacts of climate change through economic support to rural 
communities.

I. Federal Award Information

    Type of Award: Competitive grants and guaranteed loans.
    Total Funding: Approximately $50 million mandatory funding.
    Maximum Award: See Funding Restrictions in Section II of this 
notice.
    Minimum Award: See Funding Restrictions in Section II of this 
notice.
    Project Period: Up to 24 months for grants. Guaranteed loans are 
governed by the loan terms.
    Anticipated Award Date: Prior to September 30, 2022.

II. Available Funds Information

    Program Level Funds. This notice is announcing deadline times and 
dates for applications to be submitted for REAP funds that may be 
received from the congressional enactment of a full-year appropriation 
for FY22. 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 websites: https://rd.usda.gov/programs-services/rural-energy-america-program-renewable-energy-systems-energy-efficiency and https://rd.usda.gov/programs-services/rural-energy-america-program-energy-audit-renewable-energy-development-assistance. Expenses incurred in developing applications 
will be at the applicant's risk.
    Types of Funding and Allocations. REAP has two types of funding 
assistance: (1) Renewable Energy Systems, Energy Efficiency 
Improvements (RES/EEI) and Energy Efficient Equipment and Systems (EEE) 
and (2) Energy Audit and Renewable Energy Development Assistance (EA/
REDA). The RES/EEI provides grants and guaranteed loans to agricultural 
producers and rural small businesses for the purchase and installation 
of renewable energy systems and to make energy efficiency improvements. 
The EEE provides guaranteed loans only to agricultural producers to 
purchase and install energy efficient equipment and systems for 
agricultural production and processing. The EA/REDA is available to a 
unit of State, Tribal, or local

[[Page 40001]]

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 under the Resource Conservation 
and Development program at 16 U.S.C. 3451. The grantee will establish a 
program to assist agricultural producers and rural small businesses 
with evaluating energy efficiency or the potential to incorporate 
renewable energy technologies into their operations. The following 
outlines the types of REAP funding available and a summary of how funds 
are allocated:
    A. RES/EEI grant funds.
    (1) To ensure that small projects have a fair opportunity to 
compete for the funding and consistent with the priorities set forth in 
the 7 U.S.C. 8107, the Agency will set-aside not less than 20 percent 
of the FY funds until June 30, 2022 to fund grants of $20,000 or less. 
Each Rural Development State Office will receive a set-aside allocation 
of funds for grant requests of $20,000 or less, which includes 
combination grant and guaranteed loan requests where the grant amount 
requested is $20,000 or less. Complete grant applications requesting 
$20,000 or less, including the grant portion of a combined grant and 
guaranteed loan request, received by October 31, 2021 will compete for 
approximately 50 percent of the state's set-aside allocation, and those 
received by March 31, 2022 will compete for the second 50 percent 
(approximately) of the state's set-aside allocation. Any unobligated 
balance of funds remaining in state set-aside accounts will be pooled 
to the National Office for a national set-aside competition. Obligation 
of set-aside grant funds will take place through June 30, 2022.
    (2) Each Rural Development State Office will also receive an 
unrestricted allocation of grant funds that can be used to fund any 
RES/EEI grant application regardless of the amount of grant requested, 
including the grant portion of a combination grant and guaranteed loan 
request, that is received by March 31, 2022. Any unobligated balance of 
funds remaining in state unrestricted accounts will be pooled to the 
National Office for a national competition of funds. Obligation of 
unrestricted grant funds will take place through September 30, 2022.
    B. RES/EEI and EEE loan guarantee funds. Rural Development's 
National Office will maintain a reserve of guaranteed loan funds to 
fund guaranteed loan only requests or the loan portion of a combined 
funding request. EEE guaranteed loans for agricultural production and 
processing shall not exceed 15 percent of the funds available to the 
program. 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. For FY22, 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. 
Obligation of guaranteed loan funds will take place through September 
30.
    C. RES/EEI combined grant and guaranteed loan funds. Funding 
availability for combined grant and guaranteed loan applications is 
outlined in Section II paragraphs A and B of this notice. Combination 
funding requests are scored using RES/EEI grant scoring criteria. If 
the combined application is ranked high enough to receive state 
allocated grant funds, the state will request funding for the 
guaranteed loan portion of the request from the National Office 
guaranteed loan reserve and no further competition will be required. If 
not funded by the state allocation of funds, combined grant and 
guaranteed loan applications may be submitted to the National Office to 
compete in the appropriate National Office competition. Obligation of 
these funds will take place through September 30, 2022.
    D. EA/REDA grant funds. The amount of funds available for EA/REDA 
will be 4 percent of FY mandatory funds and funds will be maintained in 
a National Office reserve. Applications will compete in one national 
competition. After that date, any unobligated balances will be moved to 
the renewable energy budget authority account and may be utilized in 
any of the RES/EEI national grant competitions. Obligations of EA/REDA 
funds will take place through March 31, 2022.
    Funding Restrictions. The following funding limitations apply to 
applications submitted under this notice.
    A. RES/EEI/EEE applications.
    (1) Applicants can compete and be awarded only one RES grant and 
one EEI grant in a FY, which includes the grant portion of a combined 
funding request. The Federal grant portion cannot exceed 25 percent of 
total eligible project costs. The maximum amount of grant assistance to 
an entity will not exceed $750,000 in a FY.
    (2) For RES grants, the minimum grant is $2,500 and the maximum is 
$500,000. For EEI grants, the minimum grant is $1,500 and the maximum 
grant is $250,000. These minimum and maximum limits also apply to the 
grant portion of a combined funding request.
    (3) For RES/EEI/EEE loan guarantees or the loan guarantee portion 
of a combined funding request, 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. Guaranteed loan requests will not exceed 75 
percent of total eligible project costs, with any Federal grant 
portion, as applicable, not to exceed 25 percent of total eligible 
project costs.
    B. EA/REDA applications.
    (1) Applicants may submit only one EA grant application and one 
REDA grant application in a FY. Separate applications must be submitted 
for EA funding and REDA funding. If an application is submitted for 
both EA and REDA funding or if an application's scope of work includes 
both EA and REDA activities, it will be determined ineligible for 
competition. The maximum aggregate amount of EA and REDA grant awards 
to any one recipient cannot exceed $100,000 in a FY.
    (2) Applicants that have received one or more grants under this 
program must have made satisfactory progress per 7 CFR 4280.110(a) 
before being considered for funding.
    (3) The Agriculture Improvement Act of 2018, Public Law 115-334 
(The 2018 Farm Bill) mandates that the recipient of an EA grant must 
require the agricultural producer or rural small business receiving the 
energy audit to pay at least 25 percent of the cost of the energy 
audit, which shall be retained by the grantee for the cost of the 
audit.

III. Eligibility Information

    The eligibility requirements for the applicant, borrower, lender, 
and project (as applicable) are clarified in 7 CFR 4280 subpart B and 
in 7 CFR 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.
    A. Eligible Applicants. Grant applicants must meet the requirements 
specified in 7 CFR 4280.110. An applicant must also meet the 
requirements specified at: 7 CFR 4280.112 for RES/EEI grant; 7 CFR 
4280.137 for RES/EEI combined grant and guarantee; and 7 CFR 4280.149 
for EA/REDA grant.

[[Page 40002]]

    B. Eligible Borrowers and Lenders. To be eligible for the 
guaranteed loan portion of the program, borrowers must meet the 
eligibility requirements in 7 CFR 5001.126 and lenders must meet the 
eligibility requirements in 7 CFR 5001.130.
    C. Eligible Projects. To be eligible for the program a project must 
meet the eligibility requirements specified in: 7 CFR 4280.113 for RES/
EEI grant; 7 CFR 4280.150 for EA/REDA grant; 7 CFR 4280.137 for RES/EEI 
combined grant and guarantee; and 7 CFR 5001.106 through Sec.  
5001.108, as applicable, for RES/EEI/EEE loan guarantees.
    D. Other.
    (1) Ineligible project costs are defined at: 7 CFR 4280.115(d) for 
RES/EEI grant and combined grant and guaranteed loans; 7 CFR 
4280.152(c) for EA/REDA grant; and 7 CFR 5001.122 for RES/EEI/EEE loan 
guarantees.
    (2) Other compliance requirements. The U.S. Department of 
Agriculture Departmental Regulations and Laws that contain other 
compliance requirements are referenced in paragraphs IV.E of this 
notice. Applicants who have been found to be in violation of applicable 
Federal statutes will be ineligible.
    (3) Hemp production. 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 and further 
extension was granted until January 1, 2022, by the Continuing 
Appropriations Act, 2021, and Other Extensions Act (Pub. L. 116-260) 
(2021 Continuing Appropriations Act).
    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 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 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.

IV. Application Submission Information

    A. Address to Request Application Package. Application materials 
may be obtained by contacting the Rural Development Energy Coordinator 
for the state where the proposed project will be located, 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 4280, subpart B and 7 CFR 5001, as applicable. 
Applicants must submit complete applications by the dates identified in 
Section IV.D., 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. Applicants who have already filed REAP 
applications for FY22 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 7 CFR 4280.110(d).
    C. Submission. Applicants must submit one original, hardcopy or 
electronic application to the appropriate Rural Development Energy 
Coordinator for the State where the applicant's proposed project will 
be located, or for grant applications submission may be via 
www.grants.gov. A list of USDA Rural Development Energy Coordinators is 
available via the following link: https://www.rd.usda.gov/files/RBS_StateEnergyCoordinators.pdf.
    D. Submission Dates and Times. Grant applications, guaranteed loan-
only applications, and combined grant and guaranteed loan applications 
for financial assistance may be submitted at any time on an ongoing 
basis. Application competition deadlines are outlined in 7 CFR 4280.122 
for RES/EEI grants and 7 CFR 4280.156 for EA/REDA grants and 
competition deadlines are summarized in the table below. RES/EEI/EEE 
guaranteed loans will be reviewed and processed when received for 
periodic competitions. In order to be considered for funds under this 
notice, complete applications must be received by the appropriate USDA 
Rural Development State Office Energy Coordinator or via www.grants.gov 
by 4:30 p.m. local time on the competition deadline. 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. When an 
application window closes, the next application window opens on the 
following day. An application received after the competition date will 
be considered with other complete applications received in the next 
application window.

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                                                                              Application window closing dates/
              Application                 Application window opening dates          competition  deadlines
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EA/REDA...............................  February 2, 2021...................  January 31, 2022.*
RES/EEI--$20,000 or less set-aside.     April 1, 2021......................  October 31, 2021.
 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 state set-aside funds.
RES/EEI--$20,000 or less set-aside.     November 1, 2021...................  March 31, 2022.*
 Grant only request or a combination
 grant and guaranteed loan where the
 grant request is $20,000 or less
 competing for the remaining state set-
 aside funds.

[[Page 40003]]

 
RES/EEI--Unrestricted grants. Grant     April 1, 2021......................  March 31, 2022.*
 only request or a combination grant
 and guaranteed loan regardless of the
 amount of grant request.
RES/EEI/EEE Guaranteed Loans..........  Continuous application cycle.......  Continuous application cycle.
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* Applications received after this date will be considered for the next funding cycle in the subsequent FY.

    E. Other Submission Requirements. The following are applicable for 
all REAP applications:
    (1) Environmental information. For the Agency to consider an 
application, the application must address all environmental 
considerations specific to the project in accordance with 7 CFR 1970 
and provide supporting documentation as necessary. An environmental 
review must be completed prior to approval of the application and 
obligation of funds. Applicants are advised to contact the Agency as 
soon as possible and prior to commissioning a project to determine 
environmental requirements and 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 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.

V. Application Review Information

    A. Scoring. All complete applications will be scored in accordance 
with the following: 7 CFR 4280.121 for RES/EEI grants and RES/EEI 
combined grant and loan guarantee requests; 7 CFR 4280.155 for EA/REDA 
grants; and 7 CFR 5001.319 for RES/EEI/EEE guaranteed loans.
    B. Competitions. The maximum number of competitions a complete and 
eligible application will be able to compete within the FY is outlined 
in 7 CFR 4280.122 for RES/EEI grants, 7 CFR 4280.156 for EA/REDA 
grants, and 7 CFR 5001.315 for guaranteed loans. If the application 
remains unfunded after the final National Office competition for the FY 
it must be withdrawn.
    C. Notification of funding determination. As per 7 CFR 4280.111(c) 
and 7 CFR 5001.315(b)(2), all applicants will be informed in writing by 
the Agency as to the funding determination of the application.

VI. Other Information

    A. Paperwork Reduction Act. In accordance with the Paperwork 
Reduction Act of 1995, the information collection requirements 
associated with the programs, as covered in this notice, have been 
approved by the Office of Management and Budget (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 https://www.usda.gov/oascr/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.

Mark Brodziski,
Acting Administrator, Rural Business-Cooperative Service.
[FR Doc. 2021-15785 Filed 7-23-21; 8:45 am]
BILLING CODE 3410-XY-P