[Federal Register Volume 88, Number 62 (Friday, March 31, 2023)]
[Notices]
[Pages 19239-19245]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-06376]


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DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service

[Docket No. RBS-22-Business-0029]


Notice of Solicitation of Applications for the Rural Energy for 
America Program for Fiscal Years 2023 and 2024

AGENCY: Rural Business-Cooperative Service, USDA.

ACTION: Notice.

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SUMMARY: The Rural Business-Cooperative Service (the Agency) is issuing 
a second Notice of Solicitation of Applications (Notice) under the 
Rural Energy for America Program (REAP) as referenced in the notice 
that was published in the Federal Register on December 16, 2022. This 
second notice announces the availability of $1.055 billion in Inflation 
Reduction Act funds

[[Page 19240]]

across six quarterly cycles to be obligated by September 30, 2024. This 
Notice also announces the types of projects that qualify for a federal 
grant share not to exceed 50 percent of the project cost, a set-aside 
for underutilized renewable energy technologies (underutilized 
technologies), as well as scoring revisions to support Administration 
priorities. Applications received on or after April 1, 2023, will be 
evaluated and scored according to the provisions listed in this Notice, 
unless otherwise amended via a subsequent notice. The Notice will not 
be applied retroactively to any applications previously filed. However, 
a portion of the funding made available under this notice may be made 
available to add to pooled funds to fund any Fiscal Year (FY) 2023 
applications submitted prior to March 31, 2023, with no other changes 
in funding provisions or scoring allowed.

DATES: As provided for in 7 CFR 4280.122, the Agency, by this Notice, 
is increasing the number of competitions for Renewable Energy Systems 
and Energy Efficiency Improvements (RES/EEI) grant applications. The 
application deadline date and time as outlined in 7 CFR 4280.156(a) 
remains unchanged. RES/EEI and Energy Efficient Equipment and Systems 
(EEE) guaranteed loan applications are competed on an ongoing basis in 
accordance with 7 CFR 5001.315. See Section D.4. of this Notice for 
details on REAP competitions.

ADDRESSES: You are encouraged to contact your United States Department 
of Agriculture (USDA) Rural Development (RD) 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 State Office 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: Jonathan Burns, Program Management 
Division, Rural Business-Cooperative Service, United States Department 
of Agriculture, 774-678-7238 or email [email protected].

SUPPLEMENTARY INFORMATION: 

Overview

    Federal Awarding Agency Name: USDA, Rural Business-Cooperative 
Service.
    Funding Opportunity Title: Rural Energy for America Program (REAP).
    Announcement Type: Notice of Solicitation of Applications.
    Funding Opportunity Number: RDBCP-REAP-RES-EEI-2023-2024.
    Assistance Listing Number: 10.868.
    Dates: See the DATES section of this Notice and Section D.4. for 
details on REAP competitions.
    Rural Development Key Priorities: The Agency encourages applicants 
to consider projects that will advance the following key priorities 
below:
     Assisting rural communities recover economically through 
more and better market opportunities and through improved 
infrastructure;
     Ensuring all rural residents have equitable access to 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 Agency provides grants, guaranteed 
loans, and combined grant and guaranteed loan combinations thru the 
REAP program to help 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.
    2. Statutory and Regulatory Authority. REAP is authorized under 7 
U.S.C. 8107 and is implemented by 7 CFR 4280 Subpart B (https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XLII/part-4280#part-4280) and 7 CFR part 5001 (https://www.ecfr.gov/current/title-7/subtitle-B/chapter-L/part-5001). The Inflation Reduction Act (IRA) of 
2022 provides additional authorities for REAP (Public Law 117-169, 
Section 22002).
    3. Definitions. The definitions applicable to this notice are 
published at 7 CFR 4280.103 and 7 CFR 5001.3.
    For the purpose of this Notice only, underutilized renewable energy 
technologies (underutilized technologies) are defined as those 
technologies which do not produce greenhouse gases at the project 
level, and which make up less than 20 percent of the total grant 
dollars obligated at the end of the fiscal year, two (2) years previous 
to the current year. For example, FY 2021 award data will be utilized 
to determine which technologies are underutilized technologies for the 
FY 2023 competition.
    For awareness, the number of employees calculation used to 
determine the size of a business concern in the definition of Small 
Business is being updated to 24 months versus 12 months, to align with 
recent changes made by the Small Business Administration.

B. Federal Award Information

    Type of Award: Competitive grants and guaranteed loans.
    Fiscal Year Funds: FY 2023 and FY 2024.
    Available Funds: Total approximate budget authority made available 
under this notice is as follows:

------------------------------------------------------------------------
                  Source                           Available funds
------------------------------------------------------------------------
2022 carryover, 2023, and 2024 Inflation    up to $910,251,000.
 Reduction Act.
2022 carryover, 2023 and 2024 Inflation     up to $144,752,000.
 Reduction Act Set-Aside for Underutilized
 Technologies.
                                           -----------------------------
    Total Funds Available.................  at least $1,055,003,000.
------------------------------------------------------------------------

    The Agency may, at its discretion, increase the total level of 
funding available in this funding round (or in any category in this 
funding round) from any available source provided the awards meet the 
requirements of the statute which made the funding available to the 
Agency.
    Award Amounts: See Funding Restrictions in Section E of this Notice 
for minimum and maximum award amounts.
    Anticipated Award Date: Projects will be awarded quarterly with all 
FY obligations made prior to September 30th of each year.

[[Page 19241]]

    Performance Period: Up to 24 months for grants. Guaranteed loans 
are governed by the loan terms.
    Type of Instrument: Grant, guaranteed loan, and grant and 
guaranteed loan combined funding.
    Approximate Number of Awards: The estimated number of awards of 
9,000 is based on the anticipated level of funding as noted in the 
table above. 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.
    Available Funds Information:
    (a) Program Level Funds. This Notice is announcing the remainder of 
FY 2022 mandatory Farm Bill carryover funding in addition to FYs 2023 
and 2024 IRA funding not announced in the December 16, 2022, REAP 
notice, including any carryover. This Notice also includes a set-aside 
for underutilized renewable energy technologies. Expenses incurred in 
developing applications will be at the applicant's risk.
    1. Energy Audit and Renewable Energy Development Assistance (EA/
REDA) grant funds. The amount of funds that will be available for EA/
REDA will be dependent on new Farm Bill funding received, if any, and 
any other appropriated funding. Applications will be competed at the 
National Office and obligations of EA/REDA funds will take place 
through March 31 of each year.
    2. RES/EEI grant funds. IRA funds will be available to fund 
requests that do not exceed 50 percent of total eligible project costs. 
Farm Bill funds and FY 2024 annual appropriated funds, if any, will be 
available to fund requests that do not exceed 25 percent of total 
eligible project costs.
    (i) To ensure that small projects have a fair opportunity to 
compete for the funding and to be consistent with the requirements set 
forth in the 7 U.S.C. 8107(e)(1), the Agency will set aside not less 
than 20 percent of the Farm Bill and IRA funds until June 30 of each 
year to fund grant requests of $20,000 or less, including the grant 
portion of a combined grant and guaranteed loan request. Each RD State 
Office will receive a set-aside allocation of IRA 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. States may request Farm Bill set-aside funds from their 
allocation held at the National Office. Complete grant applications 
requesting $20,000 or less must be submitted by March 31 to compete for 
set-aside funding. Any unobligated balance of funds remaining in state 
set-aside accounts on June 1 will be pooled by the National Office for 
national set-aside competitions. Obligation of set-aside grant funds 
will take place through June 30 of each year.
    (ii) Each RD State Office will also receive allocations of 
unrestricted Farm Bill funds, if any, and IRA 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. Complete applications must be received by June 
30th to compete for FY funding. Any unobligated balance of funds 
remaining in state unrestricted accounts on August 1 will be pooled to 
the National Office for a national competition of funds. The pooling 
will first consider funding underutilized technology with the funding 
set-aside. Obligation of unrestricted grant funds will take place 
through September 30th of each year.
    3. RES/EEI and EEE loan guarantee funds. RD's National Office will 
maintain a reserve of Farm Bill 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. The guaranteed 
fee rates, the annual renewal fee, the maximum percentage of guarantee 
and the maximum portion of guaranteed authority available for a reduced 
guaranteed fee will be published annually in a separate notice. 
Obligation of guaranteed loan funds will take place through September 
30th of each year.
    4. RES/EEI combined grant and guaranteed loan funds. Funding 
availability for combined grant and guaranteed loan applications is 
outlined in Sections B and C of this Notice. Combination funding 
requests are scored using RES/EEI grant scoring criteria in accordance 
with 7 CFR 4280.121 and 7 CFR 4280.137(h). 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 30th of each year.
    Signage: The Awardee is encouraged to display USDA standard 
infrastructure investment signage, available for download from the 
Agency, during construction of the project. Expenditures for such 
signage shall be a permitted eligible cost of IRA funded projects.

C. Eligibility Information

    1. Eligibility Requirements. 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.
    i. 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.
    ii. 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.
    iii. 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 guaranteed loan; and 7 CFR 5001.106 through 
5001.108, as applicable, for RES/EEI/EEE loan guarantees.
    2. Cost Sharing or Matching. Matching requirements for each type of 
funding, as applicable, are outlined in 7 CFR 4280.115 (b) for RES/EEI 
grant; and 7 CFR 4280.137 for RES/EEI combined grant and guaranteed 
loan.
    3. Other.
    i. 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 4280.137 (j)(5) and 5001.122 
for RES/EEI/EEE loan guarantees.

[[Page 19242]]

    ii. Other compliance requirements. The USDA Departmental 
Regulations and Laws that contain other compliance requirements are 
referenced in Section D.5. of this Notice. Applicants who have been 
found to be in violation of applicable Federal statutes will be 
ineligible.
    iii. Hemp production. The Agriculture Improvement Act of 2018, 
Public Law 115-334, (the 2018 Farm Bill) requires USDA to promulgate 
regulations and guidelines to establish and administer a program for 
the production of hemp in the United States.
    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, to be in compliance with regulations published by the 
Agricultural Marketing Service at 7 CFR part 990, and meet any 
applicable U.S. Food and Drug Administration and U.S. Drug Enforcement 
Administration 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.

D. Application and Submission Information

    1. Address to Request Application Package. Application materials 
may be obtained by contacting the RD 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.
    2. 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 D.4., 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. The Agency 
encourages the applicant to reach out to their Energy Coordinator to 
determine application status. The applicant bears all risk should they 
incur project costs or commence construction activities prior to Agency 
notification of a complete and eligible application and the completion 
of an environmental review.
    3. Submission. Applicants must submit one original, hardcopy or 
electronic application to the appropriate RD Energy Coordinator for the 
State where the applicant's proposed project will be located. For grant 
applications, submission may be via www.grants.gov. A list of USDA RD 
State Office Energy Coordinators is available via the following link: 
https://www.rd.usda.gov/files/RBS_StateEnergyCoordinators.pdf.
    4. 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 and will compete accordingly based on the application window 
submission deadlines. In accordance with 7 CFR part 4280 and this 
Notice, application submission deadlines are summarized in the table 
below. To be considered for funds under this Notice, complete 
applications must be received by the appropriate USDA RD State Office 
Energy Coordinator or via www.grants.gov by 4:30 p.m. local time on the 
application window submission 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. The Agency encourages the 
applicant to reach out to their Energy Coordinator to determine 
application status.
    When an application window closes, the next application window 
opens on the following day. An application received after the window 
closing date will be considered with other complete applications 
received in the next application window.

------------------------------------------------------------------------
                                  Application window  Application window
       Type of application           opening dates       closing dates
------------------------------------------------------------------------
EA/REDA.........................  February 1, 2023..  January 31, 2024.
RES/EEI (Q1)....................  April 1, 2023.....  June 30, 2023*.
RES/EEI (Q2)....................  July 1, 2023......  September 30,
                                                       2023.
RES/EEI (Q3)....................  October 1, 2023...  December 31, 2023.
RES/EEI (Q4)....................  January 1, 2024...  March 31, 2024.
RES/EEI (Q5)....................  April 1, 2024.....  June 30, 2024*.
RES/EEI (Q6)....................  July 1, 2024......  September 30,
                                                       2024.
RES/EEI/EEE Guaranteed Loans....  Continuous          Continuous
                                   application cycle.  application
                                                       cycle.
------------------------------------------------------------------------
* Unless subsequent deadlines are published via a Notice, applications
  received after this date will be considered in the next quarter for
  the subsequent FY funding.

    5. Other Submission Requirements. The following are applicable for 
all REAP applications:
    i. 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 part 
1970 and provide supporting documentation as necessary. 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.
    ii. Transparency Act Reporting. All recipients of Federal financial 
assistance are required to report information about first-tier 
subawards 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.
    iii. 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

[[Page 19243]]

likelihood of receiving an award will not be impacted by furnishing or 
not furnishing this information.

E. Funding Restrictions

    The following funding limitations apply to applications submitted 
under this Notice.
    1. RES/EEI/EEE applications.
    i. Modification is being made via this Notice to increase the 
maximum grant assistance noted in 7 CFR 4280.115(a)(3). 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. If it 
is determined that an applicant is affiliated with another entity that 
has also applied, then the maximum grant award applies to all 
affiliated entities as if they applied as one applicant. An affiliate 
is an entity controlling or having the power to control another entity, 
or a third party or parties that control or have the power to control 
both entities. The maximum amount of grant assistance to an entity will 
not exceed $1,500,000 in a FY.
    ii. Modification is being made via this Notice to the Federal grant 
portion noted in 7 CFR 4280.115(a). Pursuant to Section 22002 of the 
IRA, the Federal grant portion of a project utilizing IRA funds cannot 
exceed 50 percent of total eligible project costs. Applications 
submitted on or after April 1, 2022, through March 31, 2023, are 
eligible for up to 40 percent Federal grant share from IRA funds as 
outlined in the December 16, 2022, notice. Applications submitted on or 
after April 1, 2023, are eligible for up to 50 percent Federal grant 
share from IRA funds if the project meets one of the following 
criteria:
    (a) Is a renewable energy system or retrofit of a renewable energy 
system that produces zero greenhouse gas emissions (carbon dioxide 
(CO2), methane (CH4), nitrous oxide 
(N2O), or fluorinated gases) at the project level;
    (b) Is located in an Energy Community as defined in 26 U.S.C. 
45(b)(11)(B), and as determined by the Department of Energy;
    (c) Is an energy efficiency improvement project; or
    (d) Is a project proposed from an eligible Tribal corporation or 
other Tribal Business entities (including Tribal agriculture 
operations) as described in 7 CFR part 4280.
    All other applications, such as biomass and biogas projects, are 
eligible for up to 25 percent Federal grant share from IRA funds. The 
Federal grant portion of a project utilizing Farm Bill funds or FYs 
2023 or 2024 appropriated funds, if any, cannot exceed 25 percent of 
total eligible project costs. Sources of REAP grant funds cannot be 
combined to fund a project. Loan and grant combination applications may 
use IRA grant funds and mandatory Farm Bill loan funds to fund a 
project.
    iii. For RES grants, the minimum request is a total project cost 
threshold of $10,000, therefore at 25 percent funding the minimum grant 
request is $2,500 and at 50 percent funding the minimum grant request 
is $5,000. The maximum grant request is $1,000,000. For EEI grants, the 
minimum request is a total project cost threshold of $6,000, therefore 
at 25 percent funding the minimum grant request is $1,500 and at 50 
percent funding the minimum grant request is $3,000. The maximum grant 
request is $500,000. These minimum and maximum limits also apply to the 
grant portion of a combined funding request.

----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
                   Renewable energy systems              Energy efficiency improvements
----------------------------------------------------------------------------------------------------------------
At 25% Funding--Minimum Grant Request.........          $2,500  At 25% Funding--Minimum Grant             $1,500
                                                                 Request.
At 50% Funding--Minimum Grant Request.........           5,000  At 50% Funding--Minimum Grant              3,000
                                                                 Request.
Maximum Grant Request.........................       1,000,000  Maximum Grant Request...........         500,000
----------------------------------------------------------------------------------------------------------------

    iv. For RES/EEI/EEE loan guarantees or the loan guaranteed 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. REAP guaranteed loan requests and combined 
grant and guaranteed loan requests will not exceed 75 percent of total 
eligible project costs, with the portion of any grant requests under 
this Notice not exceeding 25, or 50 percent of total eligible project 
costs, as applicable to the source of grant funds and grant funding 
provisions as outlined in this Notice.
    2. EA/REDA applications.
    i. 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.
    ii. 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.
    iii. 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.

F. Application Review Information

    1. Scoring. All complete applications will be scored in accordance 
with the following:
    i. RES/EEI grant applications and RES/EEI combined grant and loan 
guarantee requests received between April 1, 2022, through March 31, 
2023, will be scored according to the Notice published in the Federal 
Register on December 16, 2022.
    ii. RES/EEI grants and RES/EEI combined grant and loan guarantee 
requests submitted on or after April 1, 2023, will be scored based on 7 
CFR 4280.121 and criteria identified in F.1.v. below. The following 
modifications to the scoring criteria outlined in 7 CFR 4280.121 will 
be applied for this section:
    (a) Existing business and size of request, 7 CFR 4280.121(e) and 
(g) will be removed from the scoring criteria.
    (b) Project is located in a Disadvantaged Community or a Distressed 
Community (15 points will be added). A Disadvantaged Community will be 
determined by the Agency by using the Council on Environmental 
Quality's Climate and Economic Justice Screening Tool (which is 
incorporated into the USDA look-up map) which identifies communities 
burdened by climate change and environmental injustice. Additionally, 
all communities within the boundaries of Federally Recognized Tribes 
and Alaska Native Villages will also be determined to be Disadvantaged 
Communities by the Agency. Distressed Community will be determined by 
the Agency by using the Economic Innovation Group's Distressed 
Communities Index (which is incorporated into the USDA look-up map), 
which uses several socio-

[[Page 19244]]

economic measures to identify communities with low economic well-being. 
To determine if your project is located in a Disadvantaged Community or 
a Distressed Community, please use the following USDA look-up map: 
https://ruraldevelopment.maps.arcgis.com/apps/webappviewer/index.html?id=4acf083be4c44bb7864d90f97de0c788.
    (c) Environmental benefits, 7 CFR 4280.121(a) is being increased to 
a maximum of 10 points and points will be awarded as follows. All 
projects which do not produce greenhouse gases at the project level 
will be awarded five points and may be considered for up to a maximum 
of 10 points. Applicants must provide a detailed narrative or analysis 
to support additional environmental benefits. One point will be awarded 
for each documented environmental benefit supported by the project; 
does not convert farmland; does not contribute to deforestation or 
addresses fire hazards on forest lands; documented water conservation; 
complies with EPA's renewable fuel standards; and at least 25% of 
project components are biobased.
    (d) Commitment of funds, 7 CFR 4280.121(c) is being decreased to a 
maximum of 10 points.
    (e) State Director and Administrator priority points, 7 CFR 
4280.121(h) have been modified as shown in item F.1.v. below.
    (f) The remaining scoring criteria, energy generated, replaced or 
saved; previous grantees and borrowers; and simple payback, 7 CFR 
4280.121 (b), (d), and (f), respectively, remain as stated in the 
regulation.

                             Table Summarizing the REAP RES and EEI Scoring Changes
----------------------------------------------------------------------------------------------------------------
Scoring Criteria for REAP RES/EEI applications submitted April   Scoring Criteria for REAP RES/EEI applications
                  1, 2022, to March 31, 2023                          submitted on and after April 1, 2023
----------------------------------------------------------------------------------------------------------------
                Points                         Criteria                  Points                  Criteria
----------------------------------------------------------------------------------------------------------------
25...................................  Energy generated/saved/  25.....................  Energy generated/saved/
                                        replaced.                                         replaced
15...................................  Previous recipient? If   15.....................  Previous recipient? If
                                        no, 15 points and                                 no, 15 points and
                                        scales from there.                                scales from there
15...................................  Length of payback        15.....................  Length of payback
                                        period.                                           period
15...................................  Commitment of matching   10.....................  Commitment of matching
                                        funds.                                            funds
5....................................  Environmental benefits.  10.....................  Environmental benefits
10...................................  Size of request........  15.....................  Located in a
                                                                                          Disadvantaged
                                                                                          Community or a
                                                                                          Distressed Community.
5....................................  Existing business......  .......................  .......................
10...................................  State Director/          10.....................  State Director/
                                        Administrator Pts..                               Administrator Pts.
100..................................  Total..................  100....................  Total
----------------------------------------------------------------------------------------------------------------

    iii. EA/REDA grants will be scored based on 7 CFR 4280.155.
    iv. RES/EEI/EEE guaranteed loans will be scored based on 7 CFR 
5001.319 and item F.1.v. below.
    v. State Director or Administrator priority points are found in 7 
CFR 4280.121(h), 4280.137(h), and 5001.319(g). For the purposes of this 
notice, the State Director or Administrator at their discretion may 
award up to 10 priority points maximum for projects which meet any of 
the following criteria: (i) Selecting the application helps achieve 
geographic diversity, which may include points based upon the size of 
the funding request; (ii) The applicant is a member of an unserved or 
underserved population described as follows: (1) 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 
application to indicate that owners of the project have veteran status; 
or (2) 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; (iii) The 
proposed project is in a Federally declared major disaster area. 
Declarations must be within the last 2 calendar years; or (iv) the 
proposed project is located in (1) an area where 20 percent or more of 
its population is living in poverty over the last 30 years, as defined 
by the United States Census Bureau, or (2) an area that has experienced 
long-term population decline, or loss of employment. Except for veteran 
and socially disadvantaged group status, all other priority points are 
based upon project location specific criteria which will be documented 
automatically by the Agency. State Director or Administrator priority 
points for a REAP application cannot exceed 10 points total.
    2. Competitions. As provided for in 7 CFR 4280.122, additional 
competition windows are being added to allow RES/EEI grants, including 
combination grant and guaranteed loan requests, submitted on or after 
April 1, 2023, to compete quarterly. There are six quarterly 
application windows. Applications compete in the quarter following the 
quarter in which the application was submitted. Quarterly windows 
through the end of FY 2024 are as follows: Q1, April-June 2023; Q2, 
July-September 2023; Q3, October-December 2023; Q4, January-March 2024; 
Q5, April-June 2024; Q6, July-September 2024. Applications must be 
received, regardless of postmark, by the applicable State Office by 
4:30 p.m. local time on the final day of each quarter or else they will 
be considered submitted in the following quarter. If the last day of 
the quarter falls on a non-business day or a Federally-observed 
holiday, the next Federal business day will be considered the last day 
for receipt of a complete application for the quarter. Applications not 
funded in a given quarter will rollover to the next quarterly 
competition however, the applicant must file a new application if the 
application is not funded in the final fiscal year competition (final 
fiscal year competitions are Q2 for September 2023 and Q6 for September 
2024).
    There are multiple sources and reserves of funding and the 
application will compete accordingly based upon on the dollar amount of 
grant request (set-aside or unrestricted), the percent of Federal grant 
share to total project cost (IRA or Farm Bill), or if the definition

[[Page 19245]]

of underutilized technologies, as defined in Section A.3. is met. The 
final FY quarterly application window for grant requests of $20,000 or 
less to compete in the set-aside is the quarter ending March 31st which 
allows the application to compete prior to the June 30th set-aside 
obligation deadline. The final FY quarterly application window, 
regardless of the size of the grant request, to compete for fiscal year 
funds is the quarter ending June 30th which allows the application to 
compete prior to the September 30th unrestricted obligation deadline. 
Funds not used in a given quarter will roll over to the next quarter. 
State allocated restricted funds will be pooled on June 1 to hold a 
national pooled competition for grants requesting $20,000 or less. 
State allocated, unrestricted funds, will be pooled on or before August 
1st to hold a national pooled competition for grants unrestricted by 
the size of the grant request. To compete in a national pooling an 
application must have competed in at least one state competition. 
Applications not funded in the national unrestricted pooling 
competition must be withdrawn. If eligible, the applicant may submit a 
new application for the project to compete in the next fiscal year. 
Unless modified in a subsequent notice, the maximum number of 
competitions a complete and eligible application will be able to 
compete within the FY is outlined in 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.
    3. 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.

H. Build America, Buy America Act

    Funding to Non-Federal Entities. Awardees that are Non-Federal 
Entities, defined pursuant to 2 CFR 200.1 as any State, local 
government, Indian tribe, Institution of Higher Education, or nonprofit 
organization, shall be governed by the requirements of Section 70914 of 
the Build America, Buy America Act (BABAA) within the IIJA. Any 
requests for waiver of these requirements must be submitted pursuant to 
USDA's guidance available online at https://www.usda.gov/ocfo/federal-financial-assistance-policy/USDABuyAmericaWaiver.

I. Other Information

    1. Congressional Review Act Statement. Pursuant to Subtitle E of 
the Small Business Regulatory Enforcement Fairness Act of 1996 (also 
known as the Congressional Review Act or CRA); 5 U.S.C. 801 et seq., 
the Office of Information and Regulatory Affairs in the Office of 
Management and Budget designated this action as a major rule as defined 
by 5 U.S.C. 804(2), because it is likely to result in an annual effect 
on the economy of $100,000,000 or more. Accordingly, there is a 60-day 
delay in the effective date of this action, and the Agency will not 
take action on applications until the later of 60 days after 
notification to Congress or May 30, 2023. The 60-day delay required by 
the CRA is not expected to have a material impact upon the 
administration and/or implementation of this program.
    2. 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.
    3. Nondiscrimination Statement. In accordance with Federal civil 
rights law and 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.
    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:
    (i) Mail: U.S. Department of Agriculture, Office of the Assistant 
Secretary for Civil Rights, 1400 Independence Avenue SW, Washington, DC 
20250-9410; or
    (ii) Fax: (833) 256-1665 or (202) 690-7442; or
    (iii) Email: [email protected]
    USDA is an equal opportunity provider, employer, and lender.

Karama Neal,
Administrator, Rural Business-Cooperative Service.
[FR Doc. 2023-06376 Filed 3-30-23; 8:45 am]
BILLING CODE 3410-XY-P