81 FR 71689 - Notice of Solicitation of Applications for the Rural Energy for America Program for Federal Fiscal Year 2017

DEPARTMENT OF AGRICULTURE
Rural Business-Cooperative Service

Federal Register Volume 81, Issue 201 (October 18, 2016)

The Rural Business-Cooperative Service (the Agency) announces the acceptance of applications under the Rural Energy for America Program (REAP) which is designed to help agricultural producers and rural small businesses reduce energy costs and consumption and help meet the Nation's critical energy needs. REAP have two types of funding assistance: (1) Renewable Energy Systems and Energy Efficiency Improvements Assistance, and (2) Energy Audit and Renewable Energy Development Assistance Grants. The Renewable Energy Systems and Energy Efficiency Improvement Assistance provides grants and guaranteed loans to agricultural producers and rural small businesses to purchase and install renewable energy systems and make energy efficiency improvements to their operations. Eligible renewable energy systems for REAP provide energy from: Wind, solar, renewable biomass (including anaerobic digesters), small hydro-electric, ocean, geothermal, or hydrogen derived from these renewable resources. The Energy Audit and Renewable Energy Development Assistance Grant is available to a unit of State, Tribal, or local government; instrumentality of a State, Tribal, or local government; institution of higher education; rural electric cooperative; a public power entity; or a council, as defined in 16 U.S.C. 3451. The recipient of grant funds, grantee, will establish a program to assist agricultural producers and rural small businesses with evaluating the energy efficiency and the potential to incorporate renewable energy technologies into their operations.

[Federal Register Volume 81, Number 201 (Tuesday, October 18, 2016)]
[Notices]
[Pages 71689-71696]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-25163]


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DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service


Notice of Solicitation of Applications for the Rural Energy for 
America Program for Federal Fiscal Year 2017

AGENCY: Rural Business-Cooperative Service, USDA.

ACTION: Notice.

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SUMMARY: The Rural Business-Cooperative Service (the Agency) announces 
the acceptance of applications under the Rural Energy for America 
Program (REAP) which is designed to help agricultural producers and 
rural small businesses reduce energy costs and consumption and help 
meet the Nation's critical energy needs. REAP have two types of funding 
assistance: (1) Renewable Energy Systems and Energy Efficiency 
Improvements Assistance, and (2) Energy Audit and Renewable Energy 
Development Assistance Grants.
    The Renewable Energy Systems and Energy Efficiency Improvement 
Assistance provides grants and guaranteed loans to agricultural 
producers and rural small businesses to purchase and install renewable 
energy systems and make energy efficiency improvements to their 
operations. Eligible renewable energy systems for REAP provide energy 
from: Wind, solar, renewable biomass (including anaerobic digesters), 
small hydro-electric, ocean, geothermal, or hydrogen derived from these 
renewable resources.
    The Energy Audit and Renewable Energy Development Assistance Grant 
is available to a unit of State, Tribal, or local government; 
instrumentality of a State, Tribal, or local government; institution of 
higher education; rural electric cooperative; a public power entity; or 
a council, as defined in 16 U.S.C. 3451. The recipient of grant funds, 
grantee, will establish a program to assist agricultural producers and 
rural small businesses with evaluating the energy efficiency and the 
potential to incorporate renewable energy technologies into their 
operations.

DATES: See under SUPPLEMENTARY INFORMATION section.

FOR FURTHER INFORMATION CONTACT: The applicable USDA Rural Development 
Energy Coordinator for your respective State, as identified via the 
following

[[Page 71690]]

link: http://www.rd.usda.gov/files/RBS_StateEnergyCoordinators.pdf.
    For information about this Notice, please contact Maureen Hessel, 
Business Loan and Grant Analyst, USDA Rural Development, Energy 
Division, 1400 Independence Avenue SW., Stop 3225, Room 6870, 
Washington, DC 20250. Telephone: (202) 401-0142. Email: 
[email protected].

SUPPLEMENTARY INFORMATION:

I. Program Description

    The Rural Energy for America Program (REAP) helps agricultural 
producers and rural small businesses reduce energy costs and 
consumption and helps meet the Nation's critical energy needs. REAP has 
two types of funding assistance: (1) Renewable Energy Systems and 
Energy Efficiency Improvements Assistance and (2) Energy Audit and 
Renewable Energy Development Assistance Grants.
    The Renewable Energy Systems and Energy Efficiency Improvements 
Assistance provides grants and guaranteed loans to agricultural 
producers and rural small businesses for renewable energy systems and 
energy efficiency improvements. Eligible renewable energy systems for 
REAP provide energy from: Wind, solar, renewable biomass (including 
anaerobic digesters), small hydro-electric, ocean, geothermal, or 
hydrogen derived from these renewable resources.
    The Energy Audit and Renewable Energy Development Assistance Grant 
is available to a unit of State, Tribal, or local government; 
instrumentality of a State, Tribal, or local government; institution of 
higher education; rural electric cooperative; a public power entity; or 
a council, as defined in 16 U.S.C. 3451. The recipient of grant funds, 
(grantee), will establish a program to assist agricultural producers 
and rural small businesses with evaluating the energy efficiency and 
the potential to incorporate renewable energy technologies into their 
operations.
    A. General. Applications for REAP can be submitted any time 
throughout the year. This Notice announces the deadline times and dates 
that applications have to be received to be considered for REAP funds 
provided by the Agricultural Act of 2014, (2014 Farm Bill), and any 
appropriated funds that REAP may receive from the appropriation for 
Federal fiscal year (FY) 2017 for grants, guaranteed loans, and 
combined grants and guaranteed loans to purchase and install renewable 
energy systems, and make energy efficiency improvements; and for grants 
to conduct energy audits and renewable energy development assistance.
    The administrative requirements in effect at the time the 
application window closes for a competition will be applicable to each 
type of funding available under REAP and are described in 7 CFR part 
4280, subpart B. In addition to the other provisions of this Notice:
    (1) The provisions specified in 7 CFR 4280.101 through 4280.111 
apply to each funding type described in this Notice.
    (2) The requirements specified in 7 CFR 4280.112 through 4280.124 
apply to renewable energy system and energy efficiency improvements 
project grants.
    (3) The requirements specified in 7 CFR 4280.125 through 4280.152 
apply to guaranteed loans for renewable energy system and energy 
efficiency improvements projects. For Federal FY 2017, the guarantee 
fee amount is one percent of the guaranteed portion of the loan, and 
the annual renewal fee is one-quarter of 1 percent (0.250 percent) of 
the guaranteed portion of the loan.
    (4) The requirements specified in 7 CFR 4280.165 apply to a 
combined grant and guaranteed loan for renewable energy system and 
energy efficiency improvements projects.
    (5) The requirements specified in 7 CFR 4280.186 through 4280.196 
apply to energy audit and renewable energy development assistance 
grants.

II. Federal Award Information

    A. Statutory Authority. This program is authorized under 7 U.S.C. 
8107.
    B. Catalog of Federal Domestic Assistance (CFDA) Number. 10.868.
    C. Funds Available. This Notice is announcing deadline times and 
dates for applications to be submitted for REAP funds provided by the 
2014 Farm Bill and any appropriated funds that REAP may receive from 
the congressional enactment of a full-year appropriation for Federal FY 
2017. This Notice is being published prior to the congressional 
enactment of a full-year appropriation for Federal FY 2017. 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 Web site: www.rd.usda.gov/programs-services/rural-energy-america-program-renewable-energy-systems-energy-efficiency, and are subject to the same provisions in this Notice.
    To ensure that small projects have a fair opportunity to compete 
for the funding and are consistent with the priorities set forth in the 
statute, the Agency will set-aside 20 percent of the Federal FY 2017 
funds until June 30, 2017, to fund grants of $20,000 or less.
    (1) Renewable energy system and energy efficiency improvements 
grant-funds. There will be allocations of grant funds to each Rural 
Development State Office for renewable energy system and energy 
efficiency improvements applications. The State allocations will 
include an allocation for grants of $20,000 or less funds and an 
allocation of grant funds that can be used to fund renewable energy 
system and energy efficiency improvements applications for either 
grants of $20,000 or less or grants of more than $20,000, as well as 
the grant portion of a combination grant and guaranteed loan. These 
funds are commonly referred to as unrestricted grant funds. The funds 
for grants of $20,000 or less can only be used to fund grants 
requesting $20,000 or less.
    (2) Renewable energy system and energy efficiency improvements loan 
guarantee funds. Rural Development's National Office will maintain a 
reserve of guaranteed loan funds.
    (3) Renewable energy system and energy efficiency improvements 
combined grant and guaranteed loan funds. The amount of funds available 
for combined grant and guaranteed loan applications are outlined in 
paragraphs II.(C)(1) and II.(C)(2) of this Notice.
    (4) Energy audit and renewable energy development assistance grant 
funds. The amount of funds available for energy audits and renewable 
energy development assistance in Federal FY 2017 will be 4 percent of 
Federal FY 2017 mandatory funds and will be maintained in a National 
Office reserve. Obligations of these funds will take place through 
March 31, 2017. Any unobligated balances will be moved to the renewable 
energy budget authority account, and may be utilized in any of the 
renewable energy system and energy efficiency improvements national 
competitions.
    D. 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 Federal FY 2017, but will depend 
on the actual amount of funds made available and on the number of 
eligible applicants participating in this program.
    E. Type of Instrument. Grant, guaranteed loan, and grant/guaranteed 
loan combinations.

III. Eligibility Information

    The eligibility requirements for the applicant, borrower, lender, 
and project (as applicable) are clarified in 7 CFR part 4280 subpart B, 
and are summarized in this Notice. Failure to

[[Page 71691]]

meet the eligibility criteria by the time of the competition window may 
result in the Agency reviewing an application, but will preclude the 
application from receiving funding until all criteria have been met.
    A. Eligible Applicants. This solicitation is for agricultural 
producers and rural small businesses, as well as units of State, 
Tribal, or local government; instrumentalities of a State, Tribal, or 
local government; institutions of higher education; rural electric 
cooperatives; public power entities; and councils, as defined in 16 
U.S.C. 3451, which serve agricultural producers and rural small 
businesses. To be eligible for the grant portion of the program, an 
applicant must meet the requirements specified in 7 CFR 4280.109, 7 CFR 
4280.110, and 7 CFR 4280.112, or 7 CFR 4280.186, as applicable.
    B. Eligible Lenders and Borrowers. To be eligible for the 
guaranteed portion of the program, lenders and borrowers must meet the 
eligibility requirements in 7 CFR 4280.125 and 7 CFR 4280.127, as 
applicable.
    C. Eligible Projects. To be eligible for this program, a project 
must meet the eligibility requirements specified in 7 CFR 4280.113, 7 
CFR 4280.128, and 7 CFR 4280.187, as applicable.
    D. Cost Sharing or Matching. The 2014 Farm Bill mandates the 
maximum percentages of funding that REAP can provide. Additional 
clarification is provided in paragraphs IV.F.(1) through (3).
    (1) Renewable energy system and energy efficiency improvements 
funding. Requests for guaranteed loan and combined grant and guaranteed 
loan will not exceed 75 percent of eligible project costs, with any 
Federal grant portion not to exceed 25 percent of the total eligible 
project costs, whether the grant is part of a combination request or is 
a grant-only.
    (2) Energy audit and renewable energy development funds. Requests 
for the energy audit and renewable energy development assistance 
grants, will indicate that the grantee that conducts energy audits must 
require that, as a condition of providing the energy audit, the 
agricultural producer or rural small business pay at least 25 percent 
of the cost of the energy audit. The Agency recommended practice for on 
farm energy audits, audits for agricultural producers, ranchers, and 
farmers is the American Society of Agricultural and Biological 
Engineers S612 Level II audit. This audit conforms with program 
standards used by the Natural Resource Conservation Service. An 
applicant that has received one or more grants under this program must 
make satisfactory progress as indicated in 7 CFR 4280.100, which has 
been determined by the Agency to be the expenditure of 50 percent or 
more of the previously awarded grant by January 31, 2017, to be 
considered eligible for subsequent funding.
    E. Other. Ineligible project costs can be found in 7 CFR 
4280.114(d), 7 CFR 4280.129(f), and 7 CFR 4280.188(c), as applicable. 
The U.S. Department of Agriculture Departmental Regulations and Laws 
that contain other compliance requirements are referenced in paragraphs 
VI.B.(1) through (3), and IV.F of this Notice. Applicants who have been 
found to be in violation of applicable Federal statutes will be 
ineligible.

IV. Application and Submission Information

    A. Address to Request Application Package. Application materials 
may be obtained by contacting one of Rural Development's Energy 
Coordinators, as identified via the following link: 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 and 7 CFR part 4280, subpart B. Applicants must submit 
complete applications by the dates identified in Section IV.C. of this 
Notice, containing all parts necessary for the Agency to determine 
applicant and project eligibility, to score the application, and to 
conduct the technical evaluation, as applicable, in order to be 
considered.
    (1) Renewable energy system and energy efficiency improvements 
grant application.
    (a) Information for the required content of a grant application to 
be considered complete is found in 7 CFR part 4280, subpart B.
    (i) Grant applications for renewable energy systems and energy 
efficiency improvements projects with total project costs of $80,000 or 
less must provide information required by 7 CFR 4280.119.
    (ii) Grant applications for renewable energy systems and energy 
efficiency improvements projects with total project costs of $200,000 
or less, but more than $80,000, must provide information required by 7 
CFR 4280.118.
    (iii) Grant applications for renewable energy systems and energy 
efficiency improvements projects with total project costs of greater 
than $200,000 must provide information required by 7 CFR 4280.117.
    (iv) Grant applications for energy audits or renewable energy 
development assistance grant applications must provide information 
required by 7 CFR 4280.190.
    (b) All grant applications must be submitted either as hard copy to 
the appropriate Rural Development Energy Coordinator in the State in 
which the applicant's proposed project is located, or electronically 
using the Government-wide www.grants.gov Web site.
    (i) Applicants submitting a grant application as a hard copy must 
submit one original to the appropriate Rural Development Energy 
Coordinator in the State in which the applicant's proposed project is 
located. A list of USDA Rural Development Energy Coordinators is 
available via the following link: www.rd.usda.gov/files/RBS_StateEnergyCoordinators.pdf.
    (ii) Applicants submitting a grant application to the Agency via 
www.grants.gov (Web site) will find information about submitting an 
application electronically through the Web site, and may download a 
copy of the application package to complete it off line, upload and 
submit the completed application, including all necessary assurances 
and certifications, via www.grants.gov. After electronically submitting 
an application through the Web site, the applicant will receive an 
automated acknowledgement from www.grants.gov that contains a 
www.grants.gov tracking number. USDA Rural Development strongly 
recommends that applicants do not wait until the application deadline 
date to begin the application process through www.grants.gov.
    (c) After successful applicants are notified of the intent to make 
a Federal award, applicants must meet the requirements of 7 CFR 
4280.122 (a) through (h) for the grant agreement to be executed.
    (2) Renewable energy system and energy efficiency improvements 
guaranteed loan application.
    (a) Information for the content required for a guaranteed loan 
application to be considered complete is found in 7 CFR 4280.137.
    (b) All guaranteed loan applications must be submitted as a hard 
copy to the appropriate Rural Development Energy Coordinator in the 
State in which the applicant's proposed project is located. A list of 
USDA Rural Development Energy Coordinators is available via the 
following link: www.rd.usda.gov/files/RBS_StateEnergyCoordinators.pdf.
    (c) After successful applicants are notified of the intent to make 
a Federal

[[Page 71692]]

award, borrowers must meet the conditions prior to issuance of loan 
note guarantee as outlined in of 7 CFR 4280.142.
    (3) Renewable energy system and energy efficiency improvements 
combined guaranteed loan and grant application.
    (a) Information for the content required for a combined guaranteed 
loan and grant application to be considered complete is found in 7 CFR 
4280.165(c).
    (b) All combined guaranteed loan and grant application applications 
must be submitted as hard copy to the appropriate Rural Development 
Energy Coordinator in the State in which the applicant's proposed 
project is located. A list of USDA Rural Development Energy 
Coordinators is available via the following link: www.rd.usda.gov/files/RBS_StateEnergyCoordinators.pdf.
    (c) After successful applicants are notified of the intent to make 
a Federal award, applicants must meet the requirements, including the 
requisite forms and certifications, specified in 7 CFR 4280.117, 
4280.118, 4280.119, and 4280.137, as applicable, for the issuance of a 
grant agreement and loan note guarantee.
    (4) Energy audits or renewable development assistance grant 
applications.
    (a) Grant applications for energy audits or renewable energy 
development assistance must provide the information required by 7 CFR 
4280.190 to be considered a complete application.
    (b) All energy audits or renewable development assistance grant 
applications must be submitted either as hard copy to the appropriate 
Rural Development Energy Coordinator in the State in which the 
applicant's proposed project is located, or electronically using the 
Government-wide www.grants.gov Web site. Instructions for submission of 
the application can be found at section IV.B. of this Notice.
    (c) After successful applicants are notified of the intent to make 
a Federal award, applicants must meet the requirements of 7 CFR 
4280.195 for the grant agreement to be executed.
    5. Dun and Bradstreet Universal Numbering System (DUNS) Number and 
System for Award Management (SAM). All applicants, unless exempt under 
2 CFR 25.110, or who have an exception approved by the Federal awarding 
agency under 2 CFR 25.110(d), are required to:
    (a) Be registered in SAM prior to submitting an application; which 
can be obtained at no cost via a toll-free request line at (866) 705-
5711 or online at fedgov.dnb.com/webform.
    (b) Provide a valid DUNS number in its application.
    (c) Continue to maintain an active SAM registration with current 
information at all times during which it has an active Federal award or 
an application under consideration by the Agency.
    (d) If an applicant has not fully complied with the requirements of 
IV.C. (1) through (3) at the time the Agency is ready to make an award, 
the Agency may determine the applicant is not eligible to receive the 
award.
    C. Submission Dates and Times. Grant applications, guaranteed loan-
only applications, and combined grant and guaranteed loan applications 
for financial assistance provided by the 2014 Farm Bill for Federal FY 
2017, and for appropriated funds that REAP may receive from the 
appropriation for Federal FY 2017, may be submitted at any time on an 
ongoing basis. When an application window closes, the next application 
window opens on the following day. This Notice establishes the deadline 
dates for the applications to be received in order to be considered for 
funding. If an application window falls on a Saturday, Sunday, or 
Federal holiday, the application package is due the next business day. 
An application received after these dates will be considered with other 
applications received in the next application window. In order to be 
considered for funds under this Notice, complete applications must be 
received by the appropriate USDA Rural Development State Office or via 
www.grants.gov. The deadline for applications to be received to be 
considered for funding in Federal FY 2017 are outlined in the following 
paragraphs and also summarized in a table at the end of this section:
    (1) Renewable energy system and energy efficiency improvements 
grant applications and combination grant and guaranteed loan 
applications. Application deadlines for Federal FY 2017 grant funds 
are:
    (a) For applicants requesting $20,000 or less that wish to have 
their application compete for the ``Grants of $20,000 or less set 
aside,'' complete applications must be received no later than:
    (i) 4:30 p.m. local time on October 31, 2016, or
    (ii) 4:30 p.m. local time on March 31, 2017.
    (b) For applicants requesting grant funds of over $20,000 
(unrestricted) or funding for a combination grant and guaranteed loan, 
complete applications must be received no later than 4:30 p.m. local 
time on March 31, 2017.
    (2) Renewable energy system and energy efficiency improvements 
guaranteed loan-only applications. Applications will be reviewed and 
processed when received, with periodic competitions.
    (3) Energy audits and renewable energy development assistance grant 
applications. Applications must be received no later than 4:30 p.m. 
local time on January 31, 2017.

------------------------------------------------------------------------
                                      Application         Application
           Application              window opening      window closing
                                         dates               dates
------------------------------------------------------------------------
Renewable Energy Systems and      May 3, 2016.......  October 31, 2016.
 Energy Efficiency Improvements
 Grants ($20,000 or less
 competing for up to
 approximately 50 percent of the
 set aside funds).
Renewable Energy Systems and      November 1, 2016..  March 31, 2017 *.
 Energy Efficiency Improvements
 Grants ($20,000 or less
 competing for the remaining set
 aside funds).
Renewable Energy Systems and      May 3, 2016.......  March 31, 2017 *.
 Energy Efficiency Improvements
 Grants (Unrestricted grants,
 including combination grant and
 guaranteed loan).
Renewable Energy Systems and      Continuous          Continuous
 Energy Efficiency Improvements    application cycle.  application
 Guaranteed Loans.                                     cycle.
Energy Audit and Renewable        February 2, 2016..  January 31, 2017.
 Energy Development Assistance
 Grants.
------------------------------------------------------------------------
* Applications received after this date will be considered for the next
  funding cycle in the subsequent Federal FY.


[[Page 71693]]

    D. Intergovernmental Review. REAP is not subject to Executive Order 
12372, Intergovernmental Review of Federal Programs.
    E. Funding Restrictions. The following funding limitations apply to 
applications submitted under this Notice.
    (1) Renewable energy system and energy efficiency improvements 
projects.
    (a) Applicants can be awarded only one renewable energy system 
project and one energy efficiency improvement grant in Federal FY 2017.
    (b) For renewable energy system grants, the minimum grant is $2,500 
and the maximum is $500,000. For energy efficiency improvements grants, 
the minimum grant is $1,500 and the maximum grant is $250,000.
    (c) For renewable energy system and energy efficiency improvements 
loan guarantees, the minimum REAP guaranteed loan amount is $5,000 and 
the maximum amount of a guaranteed loan to be provided to a borrower is 
$25 million.
    (d) Renewable energy system and energy efficiency improvements 
guaranteed loan and grant combination applications. Paragraphs 
IV.E.(1)(b) and (c) of this Notice contain the applicable maximum 
amounts and minimum amounts for grants and guaranteed loans. Requests 
for guaranteed loan and combined grant and guaranteed loan will not 
exceed 75 percent of eligible project costs, with any Federal grant 
portion not to exceed 25 percent of the total eligible project costs, 
whether the grant is part of a combination request or is a grant-only.
    (2) Energy audit and renewable energy development assistance 
grants.
    (a) Applicants may submit only one energy audit grant application 
and one renewable energy development assistance grant application for 
Federal FY 2017 funds.
    (b) The maximum aggregate amount of energy audit and renewable 
energy development assistance grants awarded to any one recipient under 
this Notice cannot exceed $100,000 for Federal FY 2017.
    (c) The 2014 Farm Bill mandates that the recipient of a grant that 
conducts an energy audit for an agricultural producer or a rural small 
business must require the agricultural producer or rural small business 
to pay at least 25 percent of the cost of the energy audit, which shall 
be retained by the eligible entity for the cost of the audit.
    (3) Maximum grant assistance to an entity. For the purposes of this 
Notice, the maximum amount of grant assistance to an entity will not 
exceed $750,000 for Federal FY 2017 based on the total amount of the 
renewable energy system, energy efficiency improvements, energy audit, 
and renewable energy development assistance grants awarded to an entity 
under REAP.
    F. Other Submission Requirements.
    (1) Environmental information. For the Agency to consider an 
application, the application must include all environmental review 
documents with supporting documentation in accordance with 7 CFR part 
1970. Any required environmental review must be completed prior to 
obligation of funds or the approval of the application. Applicants are 
advised to contact the Agency to determine environmental requirements 
as soon as practicable to ensure adequate review time.
    (2) Felony conviction and tax delinquent status. Corporate 
applicants submitting applications under this Notice must include Form 
AD 3030, ``Representations Regarding Felony Conviction and Tax 
Delinquent Status for Corporate Applicants.'' Corporate applicants who 
receive an award under this Notice will be required to sign Form AD 
3031, ``Assurance Regarding Felony Conviction or Tax Delinquent Status 
for Corporate Applicants.'' Both forms can be found online at 
www.ocio.usda.gov/document/ad3030, and www.ocio.usda.gov/document/ad3031.
    (3) Original signatures. USDA Rural Development may request that 
the applicant provide original signatures on forms submitted through 
www.grants.gov at a later date.
    (4) Transparency Act Reporting. All recipients of Federal financial 
assistance are required to report information about first-tier sub-
awards and executive compensation in accordance with 2 CFR part 170. If 
an applicant does not have an exception under 2 CFR 170.110(b), the 
applicant must then ensure that they have the necessary processes and 
systems in place to comply with the reporting requirements to receive 
funding.
    (5) 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 
applications, 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. However, failure to 
furnish this information may preclude the awarding of State Director 
and Administrator points in Section V.C.(1) of this Notice.

V. Application Review Information

    A. Criteria. In accordance with 7 CFR part 4280 subpart B, the 
application dates published in Section IV.C. of this Notice identify 
the times and dates by which complete applications must be received in 
order to compete for the funds available.
    (1) Renewable energy systems and energy efficiency improvements 
grant applications. Complete renewable energy systems and energy 
efficiency improvements grant applications are eligible to compete in 
competitions as described in 7 CFR 4280.121.
    (a) Complete renewable energy systems and energy efficiency 
improvements grant applications requesting $20,000 or less are eligible 
to compete in up to five competitions as described in 7 CFR 
4280.121(b).
    (b) Complete renewable energy systems and energy efficiency 
improvements grant applications, regardless of the amount of funding 
requested are eligible to compete in two competitions each Federal FY--
a State competition and a national competition as described in 7 CFR 
4280.121(a).
    (2) Renewable energy systems and energy efficiency improvements 
guaranteed loan applications. Complete guaranteed loan applications are 
eligible for periodic competitions as described in 7 CFR 4280.139(a).
    (3) Renewable energy systems and energy efficiency improvements 
combined guaranteed loan and grant applications. Complete combined 
guaranteed loan and grant applications are eligible to compete in two 
competitions each Federal FY--a State competition and a national 
competition as described in 7 CFR 4280.121(a).
    (4) Energy audit and renewable energy development assistance grant 
applications. Complete energy audit and renewable energy development 
assistance grants applications are eligible to compete in one national 
competition per Federal FY as described in 7 CFR 4280.193.
    B. Review and Selection Process. All complete applications will be 
scored in accordance with 7 CFR part 4280 subpart B and this section of 
the Notice.
    (1) Renewable energy systems and energy efficiency improvements 
grant applications. Renewable energy system and energy efficiency grant 
applications will be scored in accordance with 7 CFR 4280.120 and 
selections will be made in accordance with 7 CFR 4280.121. Due to the 
competitive nature of this program, applications are competed based on 
submittal date. The submittal date is the

[[Page 71694]]

date the Agency receives a complete application. The complete 
application date is the date the Agency receives the last piece of 
information that allows the Agency to determine eligibility and to 
score, rank, and compete the application for funding.
    (a) Funds for renewable energy system and energy efficiency 
improvements grants of $20,000 or less will be allocated to the States. 
Eligible applications must be submitted by October 31, 2016, or May 1, 
2017, in order to be considered for these set-aside funds. 
Approximately 50 percent of these funds will be made available for 
those complete applications the Agency receives by October 31, 2016, 
and approximately 50 percent of the funds for those complete 
applications the Agency receives by May 1, 2017. All unused State 
allocated funds for grants of $20,000 or less will be pooled to the 
National Office.
    (b) Eligible applications received by May 1, 2017, for renewable 
energy system and energy efficiency improvements grants of $20,000 or 
less, that are not funded by State allocations can be submitted to the 
National Office to compete against grant applications of $20,000 or 
less from other States at a national competition. Obligations of these 
funds will take place prior to June 30, 2017.
    (c) Eligible applications for renewable energy system and energy 
efficiency improvements, regardless of the amount of the funding 
request, received by May 1, 2017, can compete for unrestricted grant 
funds. Unrestricted grant funds will be allocated to the States. All 
unused State allocated unrestricted grant funds will be pooled to the 
National Office.
    (d) National unrestricted grant funds for all eligible renewable 
energy system and energy efficiency improvements grant applications 
received by May 1, 2017, which include grants of $20,000 or less, that 
are not funded by State allocations can be submitted to the National 
Office to compete against grant applications from other States at a 
final national competition.
    (2) Renewable energy systems and energy efficiency improvements 
guaranteed loan applications. Renewable energy systems and energy 
efficiency improvements guaranteed loan applications will be scored in 
accordance with 7 CFR 4280.135 and selections will be made in 
accordance with 7 CFR 4280.139. The National Office will maintain a 
reserve for renewable energy system and energy efficiency improvements 
guaranteed loan funds. Applications will be reviewed and processed when 
received. Those applications that meet the Agency's underwriting 
requirements, are credit worthy, and score a minimum of 50 points will 
compete in national competitions for guaranteed loan funds 
periodically. All unfunded eligible guaranteed loan-only applications 
received that do not score at least 50 points will be competed against 
other guaranteed loan-only applications from other States at a final 
national competition, if the guaranteed loan reserves have not been 
completely depleted, on September 1, 2017. If funds remain after the 
final guaranteed loan-only national competition, the Agency may elect 
to utilize budget authority to fund additional grant-only applications.
    (3) Renewable energy systems and energy efficiency improvements 
combined grant and guaranteed loan applications. Renewable energy 
systems and energy efficiency improvements combined grant and 
guaranteed loan applications will be scored in accordance with 7 CFR 
4280.120 and selections will be made in accordance with 7 CFR 4280.121. 
Renewable energy system and energy efficiency improvements combined 
grant and guaranteed loan applications will compete with grant-only 
applications for grant funds allocated to their State. If the 
application is ranked high enough to receive State allocated grant 
funds, the State will request funding for the guaranteed loan portion 
of any combined grant and guaranteed loan applications from the 
National Office guaranteed loan reserve, and no further competition 
will be required. All unfunded eligible applications for combined grant 
and guaranteed loan applications that are received by May 1, 2017, and 
that are not funded by State allocations can be submitted to the 
National Office to compete against other grant and combined grant and 
guaranteed loan applications from other States at a final national 
competition.
    (4) Energy audit and renewable energy development assistance grant 
applications. Energy audit and renewable energy development assistance 
grants will be scored in accordance with 7 CFR 4280.192 and selections 
will be made in accordance with 7 CFR 4280.193. Energy audit and 
renewable energy development assistance grant funds will be maintained 
in a reserve at the National Office. Applications received by January 
31, 2017 will compete for funding at a national competition, based on 
the scoring criteria established under 7 CFR 4280.192, will compete for 
funding at a national competition. If funds remain after the energy 
audit and renewable energy development assistance national competition, 
the Agency may elect to transfer budget authority to fund additional 
renewable energy system and energy efficiency improvements grants from 
the National Office reserve after pooling.
    C. State Director and Administrator Points. The State Director and 
the Administrator will take into consideration paragraphs V.C.(1) and 
(2) below in the awarding of points for eligible renewable energy 
systems and energy efficiency improvement grant applications submitted 
in Federal FY 2017:
    (1) 7 CFR 4280.120(g)(3) may allow for applicants who are members 
of unserved or under-served populations to receive additional points if 
one of the following criteria are met:
    (a) Owned by a veteran, including but not limited to individuals as 
sole proprietors, members, partners, stockholders, etc., of not less 
than 20 percent. In order to receive points, applicants must provide a 
statement in their applications to indicate that owners of the project 
have veteran status; or
    (b) Owned by a member of a socially-disadvantaged group, which are 
groups whose members have been subjected to racial, ethnic, or gender 
prejudice because of their identity as members of a group without 
regard to their individual qualities. In order to receive points, the 
application must include a statement to indicate that the owners of the 
project are members of a socially-disadvantaged group.
    (2) 7 CFR 4280.120(g)(4) may allow for applications that further a 
Presidential initiative, or a Secretary of Agriculture priority to 
receive additional points including:
    (a) Located in rural areas with the lowest incomes where, according 
to the most recent 5-year American Community Survey, show that at least 
20 percent of the population is living in poverty. Or a project is 
located in a community (village, town, city, or Census Designated 
Place) with a median household income of 60 percent or less of the 
State's non-metropolitan median household income. This will support 
Secretary of Agriculture's priority of providing 20 percent of its 
funding to these areas of need; and
    (b) Located in designated Strike Force or Promise Zone areas, which 
is a Secretary of Agriculture's priority.
    D. Other Submission Requirements. Grant-only applications, 
guaranteed loan-only applications, and combined grant and guaranteed 
loan applications for financial assistance may be submitted at any 
time. In order to be considered for funds, complete

[[Page 71695]]

applications must be received by the appropriate USDA Rural Development 
State Office in which the applicant's proposed project is located, or 
via www.grants.gov, as identified in Section IV.C., of this Notice.
    (1) Insufficient funds. If funds are not sufficient to fund the 
total amount of an application:
    (a) For State allocated funds:
    (i) The applicant must be notified that they may accept the 
remaining funds or submit the total request for National Office reserve 
funds available after pooling. If the applicant agrees to lower its 
grant request, the applicant must certify that the purposes of the 
project will be met and provide the remaining total funds needed to 
complete the project.
    (ii) If two or more grant or combination applications have the same 
score and remaining funds in the State allocation are insufficient to 
fully award them, the Agency will notify the applicants that they may 
either accept the proportional amount of funds or submit their total 
request for National Office reserve funds available after pooling. If 
the applicant agrees to lower its grant request, the applicant must 
certify that the purposes of the project will be met and provide the 
remaining total funds needed to complete the project.
    (b) The applicant notification for national funds will depend on 
size of the grant request.
    (i) For an application requesting a grant of $20,000 or less in 
which this is the fifth and final competition or for those applications 
requesting grants of over $20,000 and combined grant and guaranteed 
loan application, the applicant must be notified that they may accept 
the remaining funds or their grant application will be withdrawn. If 
the applicant agrees to lower the grant request, the applicant must 
certify that the purposes of the project will be met and provide the 
remaining total funds needed to complete the project.
    (ii) For an application requesting a grant of $20,000 or less which 
is eligible to compete in one or more additional competitions after the 
national competition, the applicant must be notified that they may 
accept the remaining funds or have their request considered in 
subsequent competitions. If the applicant agrees to lower its grant 
request, the applicant must certify that the purposes of the project 
will be met and provide the remaining total funds needed to complete 
the project.
    (iii) If two or more grant or combination applications have the 
same score and remaining funds are insufficient to fully award them, 
the Agency will notify the applicants that they may either accept the 
proportional amount of funds or be notified in accordance with 
V.D.(1)(b)(i) or (ii), as applicable.
    (iv) At its discretion, the Agency may instead allow the remaining 
funds to be carried over to the next Federal FY rather than selecting a 
lower scoring application(s) or distributing funds on a pro-rata basis.
    (2) Award considerations. All award considerations will be on a 
discretionary basis. In determining the amount of a renewable energy 
system or energy efficiency improvements grant or loan guarantee, the 
Agency will consider the six criteria specified in 7 CFR 4280.114(e) or 
7 CFR 4280.129(g), as applicable.
    (3) Notification of funding determination. As per 7 CFR 4280.111(c) 
all applicants will be informed in writing by the Agency as to the 
funding determination of the application.

VI. Federal Award Administration Information

    A. Federal Award Notices. The Agency will award and administer 
renewable energy system and energy efficiency improvements grants, 
guaranteed loans in accordance with 7 CFR 4280.122, and 7 CFR 4280.139, 
as applicable. The Agency will award and administer the energy audit 
and renewable energy development assistance grants in accordance with 7 
CFR 4280.195. Notification requirements of 7 CFR 4280.111, apply to 
this Notice.
    B. Administrative and National Policy Requirements.
    (1) Equal Opportunity and Nondiscrimination. The Agency will ensure 
that equal opportunity and nondiscrimination requirements are met in 
accordance with the Equal Credit Opportunity Act, 15 U.S.C. 1691 et 
seq. and 7 CFR part 15d, Nondiscrimination in Programs and Activities 
Conducted by the U.S. Department of Agriculture. The Agency will not 
discriminate against applicants on the basis of race, color, religion, 
national origin, sex, marital status, or age (provided that the 
applicant has the capacity to contract); because all or part of the 
applicant's income derives from any public assistance program; or 
because the applicant has in good faith exercised any right under the 
Consumer Credit Protection Act, 15 U.S.C. 1601 et seq.
    (2) Civil Rights Compliance. Recipients of grants must comply with 
the Americans with Disabilities Act of 1990, 42 U.S.C. 12101 et seq., 
Title VI of the Civil Rights Act of 1964, 42 U.S.C. 2000d et seq., and 
Section 504 of the Rehabilitation Act of 1973, 29 U.S.C. 794. This may 
include collection and maintenance of data on the race, sex, and 
national origin of the recipient's membership/ownership and employees. 
These data must be available to conduct compliance reviews in 
accordance with 7 CFR 1901.204.
    (3) Environmental Analysis. 7 CFR part 1970, or successor 
regulation outlines environmental procedures and requirements for this 
subpart. Prospective applicants are advised to contact the Agency to 
determine environmental requirements as soon as practicable after they 
decide to pursue any form of financial assistance directly or 
indirectly available through the Agency.
    (4) Appeals. A person may seek a review of an Agency decision or 
appeal to the National Appeals Division in accordance with 7 CFR 
4280.105.
    (5) Reporting. Grants, guaranteed loans, combination guaranteed 
loans and grants, and energy audit and energy audit and renewable 
energy development assistance grants that are awarded are required to 
fulfill the reporting requirements as specified in Departmental 
Regulations, the Grant Agreement, and in 7 CFR part 4280 subpart B and 
paragraphs VI.B.(5)(a) through (d) of this Notice.
    (a) Renewable energy system and energy efficiency improvements 
grants that are awarded are required to fulfill the reporting 
requirements as specified in 7 CFR 4280.123.
    (b) Guaranteed loan applications that are awarded are required to 
fulfill the reporting requirements as specified in 7 CFR 4280.143.
    (c) Combined guaranteed loan and grant applications that are 
awarded are required to fulfill the reporting requirements as specified 
in 7 CFR 4280.165(f).
    (d) Energy audit and renewable energy development assistance grants 
grant applications that are awarded are required to fulfill the 
reporting requirements as specified in 7 CFR 4280.196.

VII. Federal Awarding Agency Contacts

    For further information contact the applicable USDA Rural 
Development Energy Coordinator for your respective State, as identified 
via the following link: www.rd.usda.gov/files/RBS_StateEnergyCoordinators.pdf.
    For information about this Notice, please contact Maureen Hessel, 
Business Loan and Grant Analyst, USDA Rural Development, Energy 
Division, 1400 Independence Avenue SW., Stop 3225, Room 6866,

[[Page 71696]]

Washington, DC 20250. Telephone: (202) 401-0142. Email: 
[email protected].

VIII. Other Information

A. Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995, the 
information collection requirements associated with renewable energy 
system and energy efficiency improvements grants and guaranteed loans, 
as covered in this Notice, have been approved by the Office of 
Management and Budget (OMB) under OMB Control Number 0570-0050. The 
information collection requirements associated with energy audit and 
renewable energy development assistance grants have also been approved 
by OMB under OMB Control Number 0570-0059.

B. Nondiscrimination Statement

    The U.S. Department of Agriculture (USDA) prohibits discrimination 
against its customers, employees, and applicants for employment on the 
basis of race, color, national origin, age, disability, sex, gender 
identity, reprisal and where applicable, political beliefs, marital 
status, familial or parental status, religion, sexual orientation, or 
all or part of an individual's income is derived from any public 
assistance program, or protected genetic information in employment or 
in any program or activity conducted or funded by the Department. (Not 
all prohibited bases will apply to all programs and/or employment 
activities.)
    If you wish to file a Civil Rights program complaint of 
discrimination, complete the USDA Program Discrimination Complaint Form 
(PDF), found online at www.ascr.usda.gov/complaint_filing_cust.html, or 
complete the form at any USDA office, or call (866) 632-9992 to request 
the form. You may also write a letter containing all of the information 
requested in the form. Send your completed complaint form or letter to 
us by mail at U.S. Department of Agriculture, Director, Office of 
Adjudication, 1400 Independence Avenue SW., Washington, DC 20250-9410, 
by fax (202) 690-7442 or email at [email protected].
    Individuals who are deaf, hard of hearing or have speech 
disabilities and wish to file either an EEO or program complaint, 
please contact USDA through the Federal Relay Service at (800) 877-8339 
or (800) 845-6136 (in Spanish).
    Persons with disabilities, who wish to file a program complaint, 
please see information above on how to contact us directly by mail or 
by email. If you require alternative means of communication for program 
information (e.g., Braille, large print, audiotape, etc.) please 
contact USDA's TARGET Center at (202) 720-2600 (voice and TDD).

    Dated: October 12, 2016.
Justin Hatmaker,
Acting Administrator, Rural Business-Cooperative Service.
[FR Doc. 2016-25163 Filed 10-17-16; 8:45 am]
 BILLING CODE 3410-XY-P