[Federal Register Volume 88, Number 41 (Thursday, March 2, 2023)]
[Notices]
[Pages 13082-13085]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-04222]


-----------------------------------------------------------------------

DEPARTMENT OF AGRICULTURE

Rural Utilities Service

[Docket #: RUS-22-ELECTRIC-0059]


Notice of Funding Opportunity (NOFO) for Section 313A Guarantees 
for Bonds and Notes Issued for Utility Infrastructure Purposes for 
Fiscal Year (FY) 2023

AGENCY: Rural Utilities Service, USDA.

ACTION: Notice of Funding Opportunity (NOFO).

-----------------------------------------------------------------------

SUMMARY: The Rural Utilities Service (RUS or the Agency), a Rural 
Development agency of the United States Department of Agriculture 
(USDA), announces the acceptance of applications under the Guarantees 
for Bonds and Notes Issued for Utility Infrastructure Purposes Program 
(the 313A Program) for Fiscal Year (FY) 2023. This notice is being 
issued in order to allow applicants sufficient time to prepare and 
submit their applications and give the Agency time to process 
applications within FY 2023. Based on FY 2023 appropriated funding, the 
Agency announces that $900 million will be available for FY 2023. The 
purpose of the 313A Program is to guarantee loans to selected 
applicants as a Guaranteed Lender. Successful applications will be 
selected by the Agency for funding and subsequently awarded to the 
extent that funding may ultimately be made available through 
apportionment. All applicants are responsible for any expenses incurred 
in developing their applications.

DATES: Completed applications must be electronically received by RUS no 
later than 5:00 p.m. Eastern Time (ET) May 1, 2023. Applicants 
intending to submit applications must have their applications received 
by the closing deadline.

ADDRESSES: Completed applications must be submitted electronically to 
Amy McWilliams, Program Advisor, Electric Program, RUS at 
[email protected].

FOR FURTHER INFORMATION CONTACT: Amy McWilliams, Program Advisor, Rural 
Utilities Service, USDA, 1400 Independence Avenue SW, Mail Stop 1560, 
Room 4121-South, Washington, DC 20250-1560, by email at 
[email protected], or call (202) 205-8663. Persons with 
disabilities that require alternative means for communication should 
contact the U.S. Department of Agriculture (USDA) Target Center at 
(202) 720-2600 (voice).

SUPPLEMENTARY INFORMATION:

[[Page 13083]]

Overview

    Federal Awarding Agency Name: Rural Utilities Service.
    Funding Opportunity Title: Guarantees for Bonds and Notes Issued 
for Utility Infrastructure Purposes for Fiscal Year (FY) 2023.
    Announcement Type: Notice of Funding Opportunity.
    Assistance Listing: 10.850.
    Dates: Completed applications must be received by RUS no later than 
5:00 p.m. Eastern Time (ET) May 1, 2023.
    Rural Development Key Priorities: The Agency encourages applicants 
to consider projects that will advance the following key priorities:
     Assisting rural communities to recover economically 
through more and better market opportunities and through improved 
infrastructure;
     Ensuring all rural residents have equitable access to 
Rural Development (RD) programs and benefits from RD funded projects; 
and
     Reducing climate pollution and increasing resilience to 
the impacts of climate change through economic support to rural 
communities.

A. Program Description

    1. Purpose of the Program. The purpose of the 313A Program is to 
guarantee loans to selected applicants (each referred to as the 
``Guaranteed Lender'' in this NOFO). The proceeds of the guaranteed 
loans are to be used (a) to make utility infrastructure loans or (b) to 
refinance bonds or notes issued for such purposes to a borrower that 
has at any time received, or is eligible to receive, a loan under the 
Rural Electrification Act of 1936, as amended (RE Act). Each applicant 
must provide a statement on how it proposes to use the proceeds of the 
guaranteed bonds, and the financial benefit it anticipates deriving 
from participating in the program pursuant to 7 CFR 1720.6(a)(3), or 
its equivalent in any subsequent regulation. Objectives may include, 
but are not limited to the annual savings to be realized by the 
ultimate borrower(s) as a result of the applicant's use of lower cost 
loan funds provided by the Federal Financing Bank (FFB) and guaranteed 
by RUS.
    The Agriculture Improvement Act of 2018 (2018 Farm Bill) modified 
the 313A Program by amending the RE Act to allow proceeds of guaranteed 
bonds awarded under this NOFO to be used to make broadband loans, or to 
refinance broadband loans made to a borrower that has received, or is 
eligible to receive, a broadband loan under title VI of the RE Act.
    The 2018 Farm Bill has also modified the 313A Program to allow the 
proceeds of guaranteed loans made under this NOFO to be used by the 
Guaranteed Lender to fund projects for the generation of electricity.
    2. Statutory and Regulatory Authority. The 313A Program is 
authorized by section 313A of the Rural Electrification Act of 1936, as 
amended (7 U.S.C. 940c-1), and is implemented by regulations located at 
7 CFR part 1720. The Administrator of RUS (the Administrator) has been 
delegated responsibility for administering the 313A Program.
    3. Definitions. The definitions applicable to this NOFO are 
currently published at 7 CFR 1720.3.
    4. Application of Awards. RUS will review and evaluate applications 
received in response to this NOFO based on the regulations at 7 CFR 
1720.7, and as provided in this NOFO.

B. Federal Award Information

    Type of Awards: Guaranteed Loans.
    Fiscal Year Funds: FY 2023.
    Available Funds: $900,000,000. Should additional funding become 
available this fiscal year, RUS reserves the right to increase the 
total funds available under this notice.
    Award Amounts: RUS anticipates making multiple guarantees under 
this NOFO. The number, amount, and terms of awards under this NOFO will 
depend in part on the number of eligible applications and the amount of 
funds requested. In determining whether to make an award, RUS will take 
overall program policy objectives into account.
    Anticipated Award Date: Awards will be made on or before September 
29, 2023, but no earlier than May 1, 2023.
    Performance Period: The RE Act provides that loans guaranteed under 
this program cannot exceed 30 years in length.
    Renewal or Supplemental Awards: N/A.
    Type of Assistance Instrument: The type of assistance is in the 
form of an RUS FFB Guaranteed Loan and is supported by a perfected lien 
on collateral sufficient to provide for full loan security.

C. Eligibility Information

    1. Eligible Applicants. To be eligible to participate in the 313A 
Program or receive a guarantee, a Guaranteed Lender must meet the 
eligibility criteria specified in 7 CFR 1720.5.
    2. Cost Sharing or Matching. There is no requirement for cost 
sharing or matching; however, borrowers must provide sufficient 
unencumbered collateral to secure loan guarantees made under this 
program.
    3. Other. Applications will only be accepted from lenders that 
serve rural areas as defined in 7 CFR 1710.2(a). For initial loans to a 
borrower made after June 18, 2008, the ``rural'' character of an area 
is determined at the time of the initial loan to furnish or improve 
service in the area.

D. Application and Submission Information

    1. Address to Request Application Package.
    All applications must be prepared and submitted in accordance with 
this NOFO and
    7 CFR part 1720 (https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XVII/part-1720).
    2. Content and Form of Application Submission.
    In addition to the required application specified in 7 CFR 1720.6, 
all applicants must submit the following additional required documents 
and materials:
    a. Restrictions on Lobbying:
    Applicants must comply with the requirements relating to 
restrictions on lobbying activities. (See 2 CFR part 418.) This form is 
available at https://www.gsa.gov/forms-library/disclosure-lobbying-activities.
    b. Uniform Relocation Act assurance statement:
    Applicants must comply with 49 CFR part 24, which implements the 
Uniform Relocation Assistance and Real Property Acquisition Policies 
Act of 1970, as amended. (See 7 CFR 1710.124.) This form is available 
at https://www.rd.usda.gov/resources/directives/electric-sample-documents.
    c. Federal debt delinquency requirements:
    This report indicates whether the applicants are delinquent on any 
Federal debt (See 7 CFR 1710.126 and 7 CFR 1710.501(a)(13)). This form 
(the Federal Debt Delinquency Certification) is available at https://www.rd.usda.gov/directives/federal-debt-delinquency-certification.
    d. Form RD 400-4, Assurance Agreement:
    Applicants must submit a non-discrimination assurance commitment to 
comply with certain regulations on non-discrimination in program 
services and benefits and on equal employment opportunity as set forth 
in 7 CFR part 15, and 12 CFR part 202, 7 CFR part 1901, subpart E, DR 
4300-003, DR 4330-0300, DR 4330-005. This form is available at https://www.rd.usda.gov/directives/compliance-assurance-rd-form-400-4-nov-2017.
    e. Articles of Incorporation and Bylaws:
    See 7 CFR 1710.501(b)(1). These are required if either document has 
been amended since the last loan application

[[Page 13084]]

was submitted to RUS, or if this is the applicant's first application 
for a loan under the RE Act.
    f. Pro forma financial statements including cash flow projections 
and assumptions:
    Each applicant must include five-year pro forma income statements, 
balance sheets and cash flow projections or business plans and clearly 
state the assumptions that underlie the projections, demonstrating that 
there is reasonable assurance that the applicant will be able to repay 
the guaranteed loan in accordance with its terms (See 7 CFR 
1720.6(a)(4)).
    g. Pending litigation statement:
    A statement from the applicant's counsel listing any pending 
litigation, including levels of related insurance coverage and the 
potential effect on the applicant, must be submitted to RUS.
    3. System for Awards Management and Unique Entity Identifier.
    a. At the time of application, each applicant must have an active 
registration in the System for Award (SAM) before submitting its 
application in accordance with 2 CFR part 25 (https://www.ecfr.gov/current/title-2/subtitle-A/chapter-I/part-25). In order to register in 
SAM, entities will be required to create Unique Entity Identifier 
(UEI). Instructions for obtaining the UEI are available at https://sam.gov/content/entity-registration.
    b. Applicant must maintain an active SAM registration, with 
current, accurate and complete information, at all times during which 
it has an active Federal award or an application under consideration by 
a Federal awarding agency.
    c. Applicant must ensure it completes the Financial Assistance 
General Certifications and Representations in SAM.
    d. Applicants must provide a valid UEI in its application, unless 
determined exempt under 2 CFR 25.110.
    e. The Agency will not make an award until the applicant has 
complied with all SAM requirements including providing the UEI. If an 
applicant has not fully complied with the requirements by the time the 
Agency is ready to make an award, the Agency may determine that the 
applicant is not qualified to receive a Federal award and use that 
determination as a basis for making a Federal award to another 
applicant.
    4. Submission Dates and Times. To be considered, applications must 
be submitted no later than 5:00 p.m. Eastern Time (ET) May 1, 2023.
    5. Funding Restrictions.
    Funds from loans guaranteed under this program may only be used in 
accordance with this notice, the program regulations and the RE Act.
    6. Other Submission Requirements. Such other application documents 
and submissions deemed necessary by the Secretary for evaluation of 
applications.

E. Application Review Information

1. Criteria.

    Each application will be reviewed by the Secretary to determine 
whether it is eligible under 7 CFR 1720.5, the information required 
under 7 CFR 1720.6 is complete, and the proposed guaranteed bond 
complies with applicable statutes and regulations. The Secretary can at 
any time reject an application that fails to meet these requirements.
    2. Review and Selection Process.
    Applications will be subject to a substantive review, on a 
competitive basis, by the Administrator based upon the evaluation 
factors listed in 7 CFR 1720.7(b). The Administrator may limit the 
number of guarantees made to a maximum of five per year, to ensure a 
sufficient examination is conducted of applicant requests. RUS will 
notify the applicant in writing of the Administrator's approval or 
denial of an application. Approvals for guarantees will be conditioned 
upon compliance with 7 CFR 1720.4 and 7 CFR 1720.6. The Administrator 
reserves the discretion to approve an application for an amount that 
was less than requested.
    Before a guarantee decision is made by the Administrator, the 
Administrator shall request that FFB review the rating agency 
determination required by 7 CFR 1720.5(b)(2) as to whether the bond or 
note to be issued would receive an investment grade rating without 
regard to the guarantee.

F. Federal Award Administration Information

    1. Federal Award Notices
    RUS will send a commitment letter to an applicant once the 
guaranteed loan has been approved. Applicants must accept and commit to 
all terms and conditions of the guaranteed loan which are requested by 
RUS and FFB before the loan guarantee award can be obligated.
    The requirements under 7 CFR 1720.8 must be met by the applicant 
prior to the endorsement of a guarantee by the Administrator. Each 
Guaranteed Lender will be required to enter into a Guarantee Agreement 
with RUS that contains the provisions described in 7 CFR 1720.8 
(Issuance of the Guarantee), 7 CFR 1720.9 (Guarantee Agreement), and 7 
CFR 1720.12 (Reporting Requirements). The Guarantee Agreement will also 
obligate the Guaranteed Lender to pay, on an annual basis, a guarantee 
fee equal to 30 basis points (0.30 percent) of the outstanding 
principal amount of the guaranteed loan (See 7 CFR 1720.10).
    2. Administrative and National Policy Requirements-
    Applicants must accept and commit to all terms and conditions of 
the guaranteed loan which are requested by RUS and FFB as follows:
    a. Compliance conditions.
    In addition to the standard conditions placed on the 313A Program 
or conditions requested by RUS to ensure loan security and statutory 
compliance, applicants must comply with the following conditions:
    (1) Each Guaranteed Lender selected under the 313A Program will be 
required to post collateral for the benefit of RUS in an amount at 
least equal to the aggregate amount of loan advances made to the 
Guaranteed Lender under the 313A Program.
    (2) The pledged collateral (the Pledged Collateral) shall consist 
of outstanding notes or bonds payable to the Guaranteed Lender (the 
Eligible Instruments) and shall be placed on deposit with a collateral 
agent for the benefit of RUS. To be deemed Eligible Instruments that 
can be pledged as collateral, the notes or bonds to be pledged (i) 
cannot be classified as non-performing, impaired, or restructured under 
generally accepted accounting principles; special mention loans as 
defined by the Office of the Comptroller of the Currency; or any other 
elevated risk categories used by the Guaranteed Lender, (ii) must be 
free and clear of all liens other than the lien created for the benefit 
of RUS, (iii) cannot be comprised of more than 30 percent of bonds or 
notes from generation and transmission borrowers, (iv) cannot have more 
than 5 percent of bonds and notes be from any one particular borrower 
and (v) cannot be unsecured notes.
    (3) The Guaranteed Lender will be required to place a lien on the 
Pledged Collateral in favor of RUS (as secured party) at the time that 
the Pledged Collateral is deposited with the collateral agent. RUS will 
have the right, in its sole discretion, within 14 business days of the 
Guaranteed Lender's written request to pledge Pledged Collateral, to 
reject any of the Pledged Instruments and require the Guaranteed Lender 
to substitute other Pledged Instruments as collateral with the 
collateral agent. Prior to receiving any advances under the 313A 
Program, the Guaranteed Lender

[[Page 13085]]

will be required to enter into a pledge agreement, satisfactory to RUS, 
with a banking institution serving as collateral agent.
    (4) The Guaranteed Lender will be required to agree not to take any 
action that would have the effect of reducing the value of the pledged 
collateral below the level described above.
    (5) Applicants must certify to the RUS, the portion of their loan 
portfolio that is:
    i. Refinanced RUS debt;
    ii. Debt of borrowers for whom both RUS and the applicants have 
outstanding loans;
    and
    iii. Debt of borrowers for whom both RUS and the applicant have 
outstanding concurrent loans pursuant to Section 307 of the RE Act, and 
the amount of Eligible Loans.
    b. Schedule of Loan Repayment: The amortization method for the 
repayment of the guaranteed loan shall be repaid by the Guaranteed 
Lender: (i) in periodic installments of principal and interest, (ii) in 
periodic installments of interest and, at the end of the term of the 
bond or note, as applicable, by the repayment of the outstanding 
principal, or (iii) through a combination of the methods described in 
(i) and (ii) above. The amortization method will be agreed to by RUS 
and the Guaranteed Lender.
    3. Compliance with Federal Laws.
    Applicants must comply with all applicable Federal laws and 
regulations.
    a. This loan guarantee will be subject to the provisions contained 
in the appropriations act for FY 2023, once enacted by Congress. Prior 
appropriations acts have included prohibitions against RUS making 
awards to applicants having corporate felony convictions within the 
past 24 months or to applicants having corporate federal tax 
delinquencies. It is possible that such provisions will be included in 
the appropriations act for FY 2023.
    b. An authorized official within your organization must execute, 
date, and return the loan commitment letter to RUS within, no later 
than 14 calendar days from the date of the letter, otherwise the 
commitment will be voided.
    4. Reporting.
    Guaranteed Lenders are required to comply with the financial 
reporting requirements and Pledged Collateral review and certification 
requirements set forth in 7 CFR 1720.12.

G. Federal Awarding Agency Contact(s)

    For general questions about this announcement, please contact your 
USDA Rural Development contact provided in the ADDRESSES section of 
this notice.

H. Other Information

Paperwork Reduction Act

    Under the Paperwork Reduction Act (44 U.S.C. 3501 et seq.), OMB 
must approve all ``collection of information'' as a requirement for 
``answers to * * * identical reporting or recordkeeping requirements 
imposed on ten or more persons * * *'' (44 U.S.C. 3502(3)(A)). RUS has 
concluded that the reporting requirements contained in this funding 
announcement will involve less than 10 persons and do not require 
approval under the provisions of the Act.

National Environmental Policy Act

    In accordance with 7 CFR 1970.53(a)(7), any proceeds to be used to 
refinance bonds or notes previously issued by the Guaranteed Lender for 
RE Act purposes are classified as categorical exclusions. However, for 
any new projects using 313A Program funds, applicants must consult with 
RUS and comply with the Agency regulations at 7 CFR part 1970.

Federal Funding Accountability and Transparency Act

    All applicants, in accordance with 2 CFR part 25 (https://www.ecfr.gov/current/title-2/part-25), must be registered in SAM and 
have a UEI number as stated in Section D.3 of this notice. All 
recipients of Federal financial assistance are required to report 
information about first-tier sub-awards and executive total 
compensation in accordance with 2 CFR part 170 (https://www.ecfr.gov/current/title-2/part-170).

Civil Rights Act

    All loan guarantees made under this notice are subject to Title VI 
of the Civil Rights Act of 1964 as required by the USDA (7 CFR part 15, 
subpart A (eCFRT:: 7 CFR part 15 subpart A--Nondiscrimination in 
Federally-Assisted Programs of the Department of Agriculture--
Effectuation of title VI of the Civil Rights Act of 1964) and section 
504 of the Rehabilitation Act of 1973, title VIII of the Civil Rights 
Act of 1968, title IX, Executive Order 13166 (Limited English 
Proficiency), Executive Order 11246, and the Equal Credit Opportunity 
Act of 1974.

Nondiscrimination Statement

    In accordance with Federal civil rights laws and U.S. Department of 
Agriculture (USDA) civil rights regulations and policies, the USDA, its 
Mission Areas, agencies, staff offices, 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. 
Program information may be made available in languages other than 
English. Persons with disabilities who require alternative means of 
communication to obtain program information (e.g., Braille, large 
print, audiotape, American Sign Language) should contact the 
responsible Mission Area, agency, or staff office; the USDA TARGET 
Center at (202) 720-2600 (voice and TTY); or the 711 Relay Service.
    To file a program discrimination complaint, a complainant should 
complete a Form AD-3027, USDA Program Discrimination Complaint Form, 
which can be obtained online at https://www.usda.gov/sites/default/files/documents/ad-3027.pdf, from any USDA office, by calling (866) 
632-9992, or by writing a letter addressed to USDA. The letter must 
contain the complainant's name, address, telephone number, and a 
written description of the alleged discriminatory action in sufficient 
detail to inform the Assistant Secretary for Civil Rights (ASCR) about 
the nature and date of an alleged civil rights violation.
    The completed AD-3027 form or letter must be submitted 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) Fax: (833) 256-1665 or (202) 690-7442; or
    (3) Email: [email protected].
    USDA is an equal opportunity provider, employer, and lender.

Andrew Berke,
Administrator, Rural Utilities Service, USDA Rural Development.
[FR Doc. 2023-04222 Filed 3-1-23; 8:45 am]
BILLING CODE 3410-15-P