NOFO and 60-day Notice

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Notices

Federal Register
Vol. 88, No. 94
Tuesday, May 16, 2023

This section of the FEDERAL REGISTER
contains documents other than rules or
proposed rules that are applicable to the
public. Notices of hearings and investigations,
committee meetings, agency decisions and
rulings, delegations of authority, filing of
petitions and applications and agency
statements of organization and functions are
examples of documents appearing in this
section.

DEPARTMENT OF AGRICULTURE
Rural Utilities Service
[Docket #: RUS–23–ELECTRIC–0005]

Notice of Funding Opportunity for the
Empowering Rural America (New ERA)
Program
ACTION:

AGENCY FOR INTERNATIONAL
DEVELOPMENT

Agency for International
Development (USAID).
ACTION: Notice of Advisory committee
public meeting and request for public
comment; correction.
AGENCY:

USAID published a document
in the Federal Register of May 1, 2023,
concerning the public meeting on May
24 and request for public comments.
The document contained incorrect
timing of the event.
FOR FURTHER INFORMATION CONTACT:
Sophia Lajaunie, Designated Federal
Officer for ACVFA, at slajaunie@
usaid.gov or 202–531–9819.
SUPPLEMENTARY INFORMATION:
SUMMARY:

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Corrections
In the Federal Register of May 1, 2023
in FR Doc. 2023–09172, on page 26516:
Correct the Summary caption to read:
Pursuant to the Federal Advisory
Committee Act (FACA), notice is hereby
given of Advisory Committee on
Voluntary Foreign Aid (ACVFA) public
meeting on Wednesday, May 24, 2023
from 10:30 a.m.–12:00 p.m. ET.
And correct the second paragraph in
the SUPPLEMENTARY INFORMATION section
to read: Pursuant to its charter, ACVFA
is holding an annual public meeting on
May 24, 2023, from 10:30 a.m.–12:00
p.m. ET. This meeting is free and open
to the public. The Committee welcomes
public participation and comment
before, during, and after the meeting via
the web and/or email addresses
provided above.

[FR Doc. 2023–10393 Filed 5–15–23; 8:45 am]
BILLING CODE 6116–01–P

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The Rural Utilities Service
(RUS or the Agency), a Rural
Development (RD) agency of the United
States Department of Agriculture
(USDA), is soliciting Letters of Interest
(LOI) for applications under the
Empowering Rural America (New ERA)
Program. In addition, the Agency is
announcing the eligibility requirements,
application process and deadlines, and
the criteria that will be used by RUS to
assess New ERA Applications. The New
ERA Program provides RUS with $9.7
billion in appropriated loan and grant
funds under the Inflation Reduction Act
(IRA) of 2022. In keeping with the
statutory authority for the program, RUS
will utilize the New ERA funds to assist
Eligible Entities to achieve the greatest
reduction in Greenhouse Gas (GHG)
emissions while advancing the longterm resiliency, reliability, and
affordability of rural electric systems.
All Eligible Entities are responsible for
any expenses incurred in developing
their LOIs and New ERA Applications.
DATES: Letters of Interest can be
submitted beginning at 11:59 p.m.
Eastern Time (ET) on July 31, 2023, and
until 11:59 p.m. ET on August 31, 2023.
Letters of Interest will not be accepted
after 11:59 p.m. ET on August 31, 2023.
Application Process: Applicants must
submit an LOI in order to be considered
for an Invitation to Proceed. An Eligible
Entity that is invited by RUS to proceed
will receive an Invitation to Proceed and
will have sixty (60) days to complete
and submit a New ERA Application
beginning from the date the Invitation to
Proceed is emailed to the Applicant. If
the sixty (60)-day deadline to submit the
completed application falls on Saturday,
Sunday, or a Federal holiday, the
application is due the next business
day. RUS reserves the right, in its sole
discretion, to extend the sixty (60)-day
deadline upon the written request of the
Applicant if the Applicant demonstrates
to the satisfaction of the Administrator
SUMMARY:

Notice of Advisory Committee Public
Meeting; Correction

Dated: May 11, 2023.
Sophia Lajaunie,
ACVFA Designated Federal Officer.

Rural Utilities Service, USDA.
Notice.

AGENCY:

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that exceptional circumstances exist to
warrant the extension. New ERA
Awards will be made as soon as
possible following the submission of a
New ERA Application, and all New ERA
funds must be fully disbursed on or
before September 30, 2031.
ADDRESSES:
Letters of Interest (LOI) Submissions.
All LOIs must be submitted to RUS
electronically through an RUS on-line
application portal. The Agency will
finalize the specific requirements of
submitting the LOI through the on-line
application portal by separate notice in
the Federal Register, the RUS website at
https://www.rd.usda.gov/programsservices/electric-programs/empoweringrural-america-new-era-program, and
Grants.gov on or before July 31, 2023.
Application Submissions. Eligible
Entities selected to proceed with the
New ERA Application must submit a
completed New ERA Application
package in accordance with the
instructions that will be provided in the
RUS Invitation to Proceed.
Other Information: Additional
information, resources, and sample LOI
are available at https://
www.rd.usda.gov/programs-services/
electric-programs/empowering-ruralamerica-new-era-program. The IRA
Funding for Rural Development website
is located at www.rd.usda.gov/inflationreduction-act.
FOR FURTHER INFORMATION CONTACT:
Christopher McLean, Assistant
Administrator, Electric Program, Rural
Utilities Service, Rural Development,
United States Department of
Agriculture, 1400 Independence Avenue
SW, STOP 1568, Washington, DC
20250–1560; Telephone: 202–690–4492.
Email to: SM.RD.RUS.IRA.Questions@
usda.gov.
SUPPLEMENTARY INFORMATION:
Overview
Federal Awarding Agency Name:
Rural Utilities Service (RUS).
Funding Opportunity Title:
Empowering Rural America (New ERA)
Program.
Announcement Type: Notice of
Funding Opportunity (NOFO).
Assistance Listing Number: 10.758.
Dates: Letters of Interest can be
submitted beginning at 11:59 p.m. ET on
July 31, 2023, and until 11:59 p.m. ET
on August 31, 2023. Letters of Interest
will not be accepted after 11:59 p.m. ET

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on August 31, 2023. An Eligible Entity
that is invited by RUS to proceed with
the New ERA Application will have
sixty (60) days to submit such a
completed New ERA Application
beginning from the date the Invitation to
Proceed is emailed to the Applicant.
The Agency encourages Applicants to
consider eligible Projects under this
funding notice that achieve the greatest
reduction of GHG as defined in Section
A.3. The RD mission of the USDA aims
to:
• Assist rural communities recover
economically through more and better
market opportunities and through
improved infrastructure;
• Ensure all rural residents have
equitable access to RD programs and
benefits from RD funded projects; and
• Reduce climate pollution and
increase resilience to the impacts of
climate change through economic
support to rural communities.
A. Program Description
1. Purpose of the Program. For nearly
a century, rural electric cooperatives
have been the backbone of power
delivery for rural America, building the
infrastructure necessary for economic
development and a high quality of life.
Owned by their members, cooperatives
are a fundamental part of rural
communities, employing residents,
pushing progress, and providing
leadership.
The Empowering Rural America (New
ERA) Program provides financial
assistance to Eligible Entities, as
described in Section C, to achieve the
greatest reductions in GHG emissions
through the cooperatives’ voluntary
transformation of rural electric systems
in a way that promotes resiliency and
reliability of rural electric systems and
affordability for their members.
With the Inflation Reduction Act, the
Biden-Harris Administration and the
United States Congress are making the
greatest investment in rural
electrification since the New Deal. The
Biden-Harris Administration
understands the transformative nature
and special qualities provided by this
appropriation. Energy produced will be
clean, affordable, reliable, and owned by
the people who live in rural America.
As a result, this legislation and the
funding opportunity here allows for a
New ERA in rural communities.
2. Statutory and Regulatory Authority.
The New ERA Program is authorized
under the Inflation Reduction Act of
2022 (Pub. L. 117–169, ‘‘IRA’’), subtitle
C, section 22004, and will be
administered by RUS. section 22004
amends 7 U.S.C. 8103 by adding
subsection (j) to that section. Other

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regulations that apply to this Notice are
7 CFR parts 1710 through 1730, 1767,
1773, 1787, and 1970 (https://
www.ecfr.gov/current/title-7/subtitle-B/
chapter-XVII).
3. Definitions. The definitions
applicable to this Notice are as follows:
Achievable Reductions Tool. A simple
Excel spreadsheet tool developed by
RUS. RUS will provide the Achievable
Reductions Tool to the Applicant to
input data related to its Portfolio of
Actions, and estimate the reduction of
GHG emissions from the Portfolio of
Actions.
Administrator. The Administrator of
the RUS, an agency under the RD
mission area of the USDA.
Agency. The Rural Utilities Service
(RUS).
Applicant. An Eligible Entity that has
received an Invitation to Proceed to
submit a New ERA Application.
Award. The financial assistance
offered to an Applicant under this
Notice.
Award Agreement. The agreement
between RUS and the Applicant
describing the terms and conditions of
the Award.
Award Documents. All agreements
and documentation to support and
evidence the financial assistance and
obligations of the Awardee, including
the Award Agreement, loan or grant
agreements, promissory notes,
mortgages, deeds of trust, indentures,
and other security agreements executed
in connection with the Award.
Awardee. An entity that has been
awarded funding under the New ERA
Program.
Carbon Capture and Storage Systems.
Those systems that capture and
permanently store carbon dioxide so
that it will not enter the atmosphere.
Any proposed Carbon Capture and
Storage System must be commercially
proven and be able to capture and
permanently store carbon dioxide
within the timeframe of this program.
Qualifying systems must demonstrate
that they are delivering public health
and other co-benefits, including not
increasing other air pollutants.
Commercially Available Technology.
Equipment, devices, applications, or
systems that have a proven, reliable
performance and replicable operating
history specific to the proposed
application. The equipment, device,
application, or system is based on
established patented design or has been
certified by an industry-recognized
organization and subject to installation,
operating, and maintenance procedures
generally accepted by industry practices
and standards. Service and replacement
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application, or system must be readily
available in the marketplace with
established warranty applicable to parts,
labor, and performance. The technology
must be designed and meant for the
proposed use.
Commitment Letter. The notification
issued by the Administrator to an
Applicant containing the total Award,
the acceptable security arrangement,
and such controls and conditions on the
Awardees’ financial, investment,
operational and managerial activities
deemed necessary by the Administrator
to adequately secure the Government’s
interest. This notification will also
describe the accounting standards and
audit requirements applicable to the
Award.
Community Benefit Plan. The
Applicant’s description of how the
proposed Project will benefit
communities and residents within the
Eligible Service Area as further
described in Section D.2.ii.s.
Distressed and Disadvantaged
Communities. A Disadvantaged
Community is determined by the
Agency by using the Council on
Environmental Quality’s Climate and
Economic Justice Screening Tool
(CEJST) (which is incorporated into the
USDA look-up map) which identifies
communities burdened by climate
change and economic and
environmental injustice. Further, all
communities within the boundaries of
Federally Recognized Tribes will be
determined to be Disadvantaged
Communities by the Agency, in addition
to Alaska Native Villages. Distressed
Community is 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 socioeconomic measures to identify
communities with low economic wellbeing. 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=4acf083be4
c44bb7864d90f97de0c788.
Eligible Activity(ies). The purchase of
Renewable Energy, Renewable Energy
Systems, Zero-Emission Systems, and
Carbon Capture and Storage Systems,
the deployment of such systems, or the
implementation of energy efficiency
improvements to electric generation or
transmission systems of Eligible Entity,
and the combinations of any such
activities, as more fully described in
Section C.

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Eligible Award Costs are defined in
Section C.3.i.
Energy Storage System(s). A facility
capable of accepting energy, storing the
energy for a period of time and then
later releasing the stored energy.
Eligible Entity(ies). An electric
cooperative described in section
501(c)(12) or 1381(a)(2) of the Internal
Revenue Code of 1986 and is or has
been a RUS or Rural Electrification
Administration (REA) electric loan
borrower pursuant to the Rural
Electrification Act of 1936 (RE Act) or
is serving a predominantly Rural Area
(or a wholly or jointly owned subsidiary
of any the preceding listed such electric
cooperatives).
Eligible Service Area. An area as
described in Section C.1.iii. of this
NOFO.
Energy Communities. A community as
defined by the Department of Treasury
and the Internal Revenue Service at
https://www.irs.gov/pub/irs-drop/n-2329.pdf or through future governmental
guidance.
Environmental and Historic
Preservation Requirements. The
National Environmental Policy Act of
1969, as amended (NEPA) (42 U.S.C
4321, et seq), section 7 of the
Endangered Species Act (16 U.S.C. 1531
et seq.), and section 106 of the National
Historic Preservation Act (NHPA)(54
U.S.C. 300101 et seq.), as well as their
implementing regulations at 7 CFR part
1970, Environmental Policies and
Procedures (including Farmland
Protection Policy Act Implementation
Policy), 50 CFR part 402, Interagency
Cooperation, and 36 CFR part 800,
Protection of Historic Properties
Financial Feasibility. An Eligible
Entity’s ability, as determined by the
Administrator, to generate sufficient
revenues to cover its expenses,
sufficient cash flow to service its debts
and obligations as they come due, and
meet the financial ratios set forth in the
applicable Award Documents.
Greenhouse Gases (GHG). For
purposes of this NOFO, GHG shall mean
carbon dioxide, methane, and nitrous
oxide.
Indian Tribe. The term ‘‘Indian Tribe’’
has the meaning given the term in
section 5304 of title 25.
Invitation to Proceed. A written
notification issued by RUS to the
Eligible Entity acknowledging that the
LOI was received, reviewed, and
inviting the Eligible Entity to submit a
New ERA Application. The notification
provides the Applicant instructions on
how to submit the application package
and details of the next steps in the
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Letter of Interest (LOI). A signed letter
issued by an Eligible Entity notifying
RUS of its intent to apply for an Award
and addressing all the elements
identified for a complete LOI in Section
D.2.i. of this NOFO.
New ERA Application. An application
containing all information required by
RUS as identified in the Invitation to
Proceed. The New ERA Application
must be materially complete in form
and substance satisfactory to RUS
within the specified time as defined in
section D of this NOFO.
Non-Federal Entities. As defined in 2
CFR 200.1, Non-Federal Entities are
States, local governments, Indian Tribes,
institutions of higher education, or
nonprofit organizations. The definition
of what constitutes a non-profit is also
located in 2 CFR 200.1.
Off-taker. Shall mean: (1) The
customers or members of the Applicant
that purchase and receive electrical
power and energy from the Applicant;
or (2) the entity that has or will execute
a Power Purchase Agreement (PPA)
with the Applicant to purchase and
receive electrical capacity and
associated energy produced by the
Project. The Off-taker may also be
referred to in the PPA as the ‘‘Buyer’’,
‘‘Customer’’, ‘‘Purchaser’’, or another
name that describes the entity
purchasing the power.
Portfolio of Actions. The combination
of the Applicant’s proposed actions
related to generation, transmission and
distribution, including distributed
energy resources, that will result in the
reductions in GHG emissions and that
support actions consistent with longterm resiliency, reliability, and
affordability of rural electric systems.
Power Purchase Agreement (PPA). A
binding agreement executed between
the Applicant and an Off-taker under
which the Off-taker agrees to purchase
and receive from the Applicant the
electrical capacity and associated energy
produced by the Project at a predetermined price and term. The PPA
may include other transactions such as
the selling and purchasing of
environmental attributes or ancillary
services such as voltage regulation and
synchronization, and contingency
reserves. Environmental attributes
include all financial attributes that are
created or otherwise arise from the
Project’s generation of electricity from a
Renewable Energy System or ZeroEmission System that include, but are
not limited to, any environmental air
quality credits, green credits, renewable
energy credits (RECs), carbon credits,
emissions reduction credits, emission
rate credits, certificates, tags, offsets,
allowances, etc.

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Project. New facilities acquired or
constructed after the effective date of
the IRA and compliant with all other
applicable requirements of this Notice
used to generate electricity from a
Renewable Energy System, and/or to
facilities that store electricity that
supports the types of Renewable Energy
Systems that are eligible to be financed
with New ERA Program loan funds, as
provided in section 22004 of the IRA,
which will result in the deployment of
Renewable Energy generation or storage
capacity.
Project Award. An Award secured by
a security interest in the assets and
revenues of the Project and supporting
credit enhancements relating to the
Project rather than by a security interest
in all of the assets of the Applicant’s
electric system. Any Award to a
Applicant that is not a current operating
utility shall be a Project Loan.
Renewable Energy. The term
‘‘Renewable Energy’’ means energy
derived from: (1) wind, solar, renewable
biomass (as defined by 7 U.S.C.
8101(13)), ocean (including but not
limited to tidal, wave, current, and
thermal), geothermal, hydroelectric, or
energy sources that are naturally
replenished and do not run out; or (2)
hydrogen derived from renewable
biomass or water using an energy source
described in subparagraph (1).
Renewable Energy Systems. For
purposes of this NOFO, the term
Renewable Energy Systems means a
system that generates usable Renewable
Energy, including but not limited to: (1)
Distribution and transmission lines and
components necessary to move the
Renewable Energy from the point of its
generation to the initial point of sale; (2)
Other components and ancillary
infrastructure of a system described in
subparagraph (1), such as an Energy
Storage System and system efficiency
measures to the distribution and
transmission lines and components; and
(3) Mechanisms for dispensing the
Renewable Energy at retail.
Rural Area. A Rural Area shall mean
one or more of the following:
• Any area of the United States, its
territories, and insular possessions
(including any area within the
Federated States of Micronesia, the
Marshall Islands, and the Republic of
Palau) other than a city, town, or
unincorporated area that has a
population of greater than 50,000
inhabitants, adjusted to exclude
individuals incarcerated on a long-term
or regional basis or the first 1,500
individuals who reside in housing
located on a military base; or
• Communities where non-rural
service is necessary and incidental to

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providing intended benefits to Rural
Areas described above.
Secretary. The Secretary of the United
States Department of Agriculture.
Substantially Underserved Trust Area
(SUTA). An area defined under section
306F of the Rural Electrification Act
(https://www.rd.usda.gov/files/
utprea36.pdf).
System Awards. Awards where the
Awardee will provide or has already
provided RUS with a perfected senior
lien in all its assets, both real and
personal property, including intangible
personal property and any property
acquired after the date of the loan.
Awards must be secured by all, or
substantially all, of the system assets,
including the Project to be financed
with a System Award. System Awards
are only available to operating electric
cooperative utilities.
Transmission Energy Efficiency
Improvements. Transmission Energy
Efficiency Improvements to an
Applicant’s transmission system shall
include measures that result in the
demonstrable reduction of GHG
emissions, including but not limited to:
(1) Reduction in transmission energy
line losses; (2) Investments that alleviate
transmission congestion as it relates to
the delivery of power generated from
Renewable Energy Systems or ZeroEmission Systems; (3) Investments in
technologies that increase the capacity
and efficiency of existing transmission
facilities or increase transmission
capacity within existing rights-of-way,
such as investments in advanced highcapacity conductor technologies or
Grid-Enhancing Technologies; and (4)
Construction of new transmission lines
for the transmission of power generated
from Renewable Energy Systems or
Zero-Emission Systems.
Zero-Emission System. Any system
that does not produce any GHG
emissions when it is operated, including
any infrastructure related to the
deployment of such systems.
4. Letters of Interest and Applications
for Awards. The Agency will review and
evaluate the LOIs pursuant to the
criteria described in Sections C, D.2.i,
and E. The Agency will open an on-line
application portal by notice in the
Federal Register, the RUS website at
https://www.rd.usda.gov/programsservices/electric-programs/empoweringrural-america-new-era-program, and
Grants.gov on or before July 31, 2023.
Letters of Interest must include data that
estimates the reduction in GHG
emissions that will result from their
proposed Project(s).
At the LOI stage, the Agency will
either: (1) allow the Eligible Entity to
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reduction of GHG emissions resulting
from its Portfolio of Actions directly
into the on-line submission portal (the
‘‘on-line estimator’’); or (2) ask the
Eligible Entity to submit a completed
Achievable Reduction Tool in the online submission portal, estimating the
reduction of GHG emissions resulting
from its Portfolio of Actions. Both the
on-line estimator and the Achievable
Reduction Tool provide a single
comparable method for the Eligible
Entity to provide the necessary data the
Agency will use to score the LOI
utilizing the criteria listed in Section
E.1.ii. of this Notice. The Eligible Entity
may also provide the data that is
required within the on-line estimator
and the Achievable Reduction Tool by
another method. The Eligible Entity’s
use of other methods, however, may
impact the Agency’s timeline for review
of the LOI. An Eligible Entity that elects
to use methods other than the on-line
estimator and the Achievable Reduction
Tool must demonstrate that its chosen
method provides comparable
information as the on-line estimator or
the Achievable Reduction Tool that will
allow the Agency to score the Portfolio
of Actions under the criteria listed in
Section E.1.ii. of this Notice.
Upon review of the LOIs, RUS may
issue an Invitation to Proceed to submit
a New ERA Application to those Eligible
Entities whose LOIs contain proposed
Projects that the Agency determines are
sufficiently strong in any of the criteria
listed in Section E and advance the
goals underlying the New ERA Program
as described in this Notice.
The Agency will review and evaluate
all New ERA Applications based on the
information contained in the
application and will utilize the same
criteria that it utilized in evaluating the
LOIs. The Applicant may utilize the
same data it provided to the Agency
with respect to the estimated GHG
reduction stemming from the Portfolio
of Actions that it provided in the LOI,
if it certifies in the New ERA
Application that the data is still
accurate. The Agency advises all
interested parties that the Eligible Entity
bears the full burden and cost of
preparing and submitting an LOI and, if
invited, a New ERA Application in
response to this Notice. RUS reserves
the right to ask Applicants for clarifying
information on, or additional
information related to, the New ERA
Application. The Agency reserves the
right to offer an Applicant a financial
package different than requested.

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B. Federal Award Information
1. Types of Awards: Loans, Loan
Modification, Loan/Grant Combination
and Grants.
2. Fiscal Year Funds: Congress
appropriated the IRA funds in FY 2023
and section 22004 requires all IRA
funds to be advanced before September
30, 2031.
3. Available Funds: Total
appropriated funds in the amount of
$9.7 billion, through September 30,
2031.
RUS may, at its discretion, increase
the total level of funding available in
this Notice or in any category in this
funding round from any available
source, provided this Notice meets the
requirements of the statute that made
the funding available to the Agency.
A loan made pursuant to this Notice
may not result in a disbursement of
funds after September 30, 2031. A grant
made pursuant to this Notice may not
result in an outlay after September 30,
2031. Applicants are advised that the
final advance date applied to individual
Projects will be well in advance of
September 30, 2031.
4. Award Amounts: As provided in
section 22004 of IRA, no one Applicant
may receive an amount equal to more
than 10 percent of the total $9.7 billion
of budget authority appropriated under
section 22004, which equals $970
million. The Applicant’s Portfolio of
Actions may cost more than $970
million as long as the funded
application uses less than $970 million
in budget authority. The section further
limits the amount of a grant to no more
than 25 percent of the total Eligible
Award Costs of the Applicant in
carrying out a Project utilizing a grant.
5. System Awards, Project Awards
and Financial Assistance: The following
types of Awards and financial assistance
are available under the New ERA
Program:
i. System Awards and Project Awards:
System Awards and Project Awards will
be offered to Eligible Entities under the
New ERA Program to finance Projects in
accordance with Section C. of this
Notice.
a. System Awards may, at the
discretion of the Administrator, finance
a New ERA Award up to 100 percent of
the Eligible Award Costs included in the
application based on the risk profile of
the Applicant and the proposed Project.
At the discretion of the Administrator,
RUS may release proceeds from a
System Award to finance Projects for
costs incurred during the construction
of the facilities. System Awards are only
available to operating electric
cooperative utilities.

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b. Project Awards are generally
secured by a senior security interest in
the Project assets and the revenues
generated from the Project, although the
Agency may require additional
collateral for a Project Award based on
the risk profile of the New ERA
Application and/or the Project. Project
Awards will require additional cash
reserves. Further, to the extent that a
PPA is in place between the Awardee
and an Off-taker, the Awardee must
collaterally assign the PPA to RUS as
security and the Off-taker must consent
to such assignment. RUS will finance up
to 75 percent of the total capitalized cost
of the Project in the loan component of
a Project Award. The Awardee will be
required to initially provide and
maintain for the term of the Project
Award at least 25 percent of the
Project’s total capitalized cost in the
form of cash or an equity investment
that does not include debt from any
source. RUS may consider allowing
Awardees to utilize the grant
component of the Award for the
required equity where RUS determines
it to be financially feasible. Further,
RUS may consider financing up to 100
percent of the capitalized cost of a
Project if the Project benefits a SUTA
eligible territory as provided in section
306F of the RE Act. The Agency may
consider allowing the Applicant to
utilize, as the required equity
component, any investment tax credits
or elective payments in lieu of
investment tax credits that the Awardee
is entitled to receive under the Internal
Revenue Code, if permitted under
applicable authorities. The Agency may
also consider allowing the Applicant to
utilize as the required equity component
any grant, including the grant
component of the New ERA Award or
a grant from any other source, if
permitted under applicable authorities.
The Agency may require the Awardee to
provide additional credit support
pending the Awardee’s receipt of the
Investment Tax Credit or Direct
Payment in lieu of the Investment Tax
Credit.
c. Unless RUS, in its discretion,
advances Award funds to an Awardee
with a System Award as described
above, RUS will only advance Award
proceeds after commercial operation of
the Project is achieved and subsequent
successful testing of the Project is
conducted to the satisfaction of RUS,
but in no case will funds be advanced
after September 30, 2031.
ii. Types of Financial Assistance:
Applicants are invited to propose
assistance from any single financial
assistance product or a combination of
such products, described below. The

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Agency reserves the right to offer an
Applicant a financial package different
than requested. The most competitive
applications, i.e. those that propose
achieving the greatest reductions in
GHG emissions, will receive the best
financial offerings in terms of grant
amounts and interest rates as outlined
in the product offerings below.
a. Loan Only. An Applicant may
request an Award to finance any Project
or combination of Projects in its
application with a loan only award. The
interest rate for a loan only award may
be set at a fixed percent at 2 percent,
zero percent, or at a rate tied to the
Federal government’s cost of money.
Applicants may request interest rates as
low as zero percent on loan only
awards, the loan portion o a loan and
grant combination, or a loan to refinance
or modify existing debt where an
eligible Project(s) contained in the New
ERA Application: (1) will either replace
a stranded asset; or (2) 40 percent or
more of the population served by the
proposed service area is located within
Distressed Communities, Disadvantaged
Communities, or Energy Communities;
or (3) will serve SUTA communities as
defined in section 306F of the RE Act;
or (4) will serve a service area located
in Puerto Rico, United States Virgin
Islands (USVI), Guam, American Samoa
or other U.S. territories or Compact of
Free Association (COFA) states.
Principal will be deferred for a period
of two years from the date of the
promissory note. The amortization
period will be based on the term of the
Award as defined in section F.
b. Loan and Grant Combinations and
Grant Only Awards.
1. Loan and Grant Combination. An
Applicant may request to finance any
Project or Projects in its application
with a grant or grant/loan combination
where the grant amount equals no more
than 25 percent of the Eligible Award
Costs. The interest rate and amortization
for the loan component of the Award
will be set as described in B.5.ii.a.
above. Applicants may propose
substituting cash for the loan
component, or any portion of the loan
component, at the time of application.
2. Grant Only Awards. An Applicant
may request an Award to finance any
Project or combination of Projects in its
application with a 100 percent grant. A
100 percent grant Award may finance
no more than 25 percent of the total
eligible Project costs. Grants, both as a
part of a loan and grant combination
Award or as a 100 percent grant Award,
will be considered based on the
estimated reduction in GHG emissions
stemming from the Applicant’s
proposed Portfolio of Actions as

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measured by the criteria outlined in
Section E.1.ii. of this Notice. The grant
portion of an Award must also be
adequately secured, as determined by
the RUS Administrator.
c. Loan Refinancing or Loan
Modification. An Applicant may request
to modify existing RUS or RUS
guaranteed debt, or refinance debt from
a third party, but only as such
modification or refinancing relates to a
stranded asset. The Applicant must
demonstrate that it will utilize the
benefits of such refinancing or
modification to pay for or otherwise
finance Eligible Activities. The interest
rate on any new loan relating to a
stranded asset loan refinancing or loan
modification will be determined as
provided in item B.5.ii.a. above. The
term of the loan related to a stranded
asset loan refinancing or loan
modification will be based on overall
Financial Feasibility as determined by
the Agency and shall not exceed 35
years. Stranded asset loans may, where
financially feasible and secure, be
advanced upon execution of the
applicable loan and security documents.
If the Awardee does not perform its
obligation described above it will be
required to repay, in whole or in part,
the refinancing or modification benefits
to the U.S. Government for nonperformance.
The amount of appropriated funds
consumed by any individual funded
New ERA Application will depend on
the amount of grant used, which scores
on a dollar-for-dollar basis, and the
amount of loans, which scores at a
subsidy rate related to the difference
between the interest rate offered on the
loan and prevailing treasury rates,
portfolio risk, and other factors at the
time of obligation. RUS will do this
calculation before making an Award to
ensure compliance with the statutory
limitations described in Section B.4.
The Agency further reserves the right to
take into account when making Awards
the cost effectiveness of the proposed
Projects relative to the appropriated
funds consumed.
6. Anticipated Award Date: Beginning
March 1, 2024.
7. Performance Period: Five (5) years
from the date of environmental
clearance, but no later than September
30, 2031.
8. Use of Other Governmental Funds:
The Agency will generally allow the
Awardee to combine the incentives
contained in this Notice with other
governmental benefits, provided such
combinations are otherwise permitted
by law or regulation.
9. Renewal or Supplemental Awards:
None.

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10. Type of Assistance Instrument:
Loan and Grant Agreements.

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C. Eligibility Information
1. Eligible Entities, Projects, Service
Areas and other Eligibility Factors.
i. Eligible Entities are:
a. Electric cooperatives described in
section 501(c)(12) or 1381(a)(2) of the
Internal Revenue Code of 1986 who are
currently or have been in the past a RUS
electric loan borrower pursuant to the
RE Act;
b. Electric cooperatives serving
predominantly Rural Areas; or
c. Wholly or jointly owned
subsidiaries of such electric
cooperatives listed in a and b.
For the purposes of this program, the
term ‘‘predominantly rural’’ as used in
(b) in this paragraph shall mean a
service territory that must include at
least 50 percent Rural Areas.
ii. An eligible Project includes a
Portfolio of Actions that will result in
the reduction in GHG emissions and be
consistent with long-term resiliency,
reliability, and affordability of rural
electric systems. Such actions include,
but are not limited to:
a. The purchase or construction of:
1. Renewable Energy.
2. Renewable Energy Systems.
3. Zero-Emission Systems.
4. Carbon Capture and Storage
Systems.
b. Activities that will enable the
deployment of the aforementioned
systems and/or improve energy
efficiency and strategies to support
these goals such as, but not limited to:
1. Grid-edge, microgrid solutions, and
other distributed energy strategies.
2. Energy Storage Systems in support
of GHG emission reductions or
Renewable Energy Systems;
3. Software and hardware to enable
the integration and/or the use of
additions and upgrades.
4. Modifying or refinancing existing
loans from RUS or refinancing non-RUS
loans for retiring non-Renewable Energy
assets on an accelerated basis with
savings reinvested into clean energy
investments.
5. Entering a long-term agreement to
purchase power from a Renewable
Energy System or Zero-Emissions
System.
6. Upgrade of existing Renewable
Energy Systems or Zero-Emission
Systems or related transmission
facilities that increase the operating
energy efficiency of these systems.
7. Transmission improvements that
can significantly enable Renewable
Energy Systems and Zero-Emissions
Systems, reduce congestion, and
improve the efficiency of the system.

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8. Activities that will significantly
reduce energy demand and GHG
emissions.
iii. Eligible Service Areas:
a. Electricity generated from or
transmitted by facilities financed with
New ERA funds shall be delivered and
distributed to consumers located in
Eligible Service Areas as defined in this
Section.
b. The facilities to be financed with an
Award to an Applicant that is not a
current or former RUS/REA borrower
must provide electric service to
consumers located in those areas that
are considered ‘‘predominantly rural.’’
RUS, in making a determination of
whether a service area is predominantly
rural will:
1. Identify the service territory where
electricity from the facilities to be
financed by the proposed Award will be
delivered and consumed; and
2. Further identify those areas within
the service territory that are in Rural
Areas in comparison to those that are in
non-rural areas. The ratio of the
population located in the Rural Areas
versus the population of the entire
service territory is referred to as the
‘‘rural percentage’’ of the service
territory. Meters served in lieu of
population may be used as a proxy to
determine rural percentage of the
service territory. For purposes of this
NOFO, a service territory that is
determined to have a rural percentage
equal to or greater than 50 percent is
considered predominantly rural and is
an Eligible Service Area. RUS will make
the rurality determination by examining
the shapefile the Eligible Entity submits
with its LOI as provided in Section
D.2.i.a.7. of this Notice.
c. The service areas of any existing or
former RUS and former REA electric
loan borrowers under the RE Act are
deemed to be ‘‘100 percent rural’’ and
therefore Eligible Service Areas under
this NOFO.
iv. Other Eligibility Factors: Program
Factors. In addition to the above
eligibility factors, the Agency may
consider the following in determining
which LOIs to select to provide an
Invitation to Proceed, and then in
evaluating the full New ERA
Application.
a. Reliability and Resiliency:
1. All proposals must promote the
reliability and resiliency of rural electric
systems.
2. Plans may include Energy Storage
Systems, microgrid systems that reduce
GHG emissions, and other strategies to
ensure the reliable provision of energy;
and
3. Plans may include transmission
improvements to enable the

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transmission of the power generated
from Renewable Energy Systems or
Zero-Emissions Systems to the
consumer, reduce congestion, and
improve system efficiency.
b. Affordability:
1. All proposals must be affordable to
the consumers in the Eligible Service
Area who will be served by the Project
in question.
2. The Administrator reserves the
discretion to take consumer impact and
the efficient use of program funds into
account when ranking projects at the
LOI and Award stages.
3. Plans may include, whether eligible
to be funded or not, energy efficiency
improvements and other strategies to
minimize and reduce costs for rate
payers.
c. Geographic Diversity: In making
selections for full applications, the
Administrator may take the geographic
distribution of proposed Projects into
account.
d. Resources: In making selections for
full applications, the Administrator may
take the New ERA funding requested for
the proposed Eligible Award Costs into
account relative to the total budgetary
resources available to the New ERA
Program. The Administrator reserves the
right to reduce the dollar amount
offered based on this consideration.
e. SUTA Considerations: For the
purposes of this funding notice, SUTA
provisions will be available to the
Administrator as it would be in the
existing RUS Electric Infrastructure
Loan Program under the RE Act;
f. Other Funds: In making selections
for full applications, the Administrator
may take into account the New ERA
funding requested for the proposed
Eligible Award Costs relative to the
Applicant’s ability to utilize funds from
other Federal programs, other than New
ERA or Powering Affordable Clean
Energy (PACE) Programs, to finance the
cost of the Project; and
g. Financial Feasibility: The Financial
Feasibility of the requested financial
assistance by evaluating the cost of the
Project relative to the Applicant’s ability
to repay the loan component of the
Award.
2. Cost Sharing or Matching.
For Project loans, RUS will finance up
to 75 percent of the total capitalized cost
of the Project in the loan component of
a Project Award. The Awardee will be
required to initially provide and
maintain for the term of the Project
Award at least 25 percent of the
Project’s total capitalized cost in the
form of cash or an equity investment.
As noted in B.5.i.b above, the Agency
may where Financially Feasible allow
an Awardee to utilize the grant

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component of the Award and/or any
applicable tax credit that it expects to
receive (including credit amounts
expected to be received through Elective
Pay elections under section 6417 of the
Internal Revenue Code) toward the 25
percent equity requirement for a Project
Award. Such financial equity may not
come from the proceeds of any loan
from any creditor, including insiders of
the Awardee.
3. Eligible and Ineligible Costs.
Award funds must be used to pay
only allowable, necessary, and eligible
costs incurred post Award, except for
approved pre-application expenses that
are listed below. Eligible costs must be
consistent with the cost principles
identified in 2 CFR part 200, subpart E.
Any request for an advance of funds
under the Award that includes any
ineligible costs will be rejected.
i. Eligible award costs. Award funds
under this NOFO may be used to pay for
the following costs:
a. To fund the construction or
improvement or purchase of facilities,
including buildings and land required
to construct the facilities being financed
with the Award and other allowable
costs and expenses listed in 2 CFR part
200, subpart E. Award funds may also
be utilized for the construction of new
linear facilities or the upgrade of
existing linear facilities that are
necessary to operate any new generation
facility including, but not limited to,
transmission or distribution facilities
that are needed to export the power;
b. To fund reasonable pre-award
expenses as provided in 2 CFR part 200,
subpart E. Pre-award expenses must be
included in the first request for advance
of Award funds.
c. To fund interest incurred during
construction pursuant to 7 CFR
1710.106(a)(4); and
d. To refinance or modify existing
debt as described in Section B of this
NOFO.
ii. Ineligible award costs. Award
funds under this part may not be used
for any of the following purposes:
a. To fund operating expenses of the
Awardee unless specifically outlined in
the Applicant’s Award Agreement;
b. To fund costs incurred prior to the
date on which the application was
submitted other than the eligible preaward expenses under 2 CFR part 200,
subpart E;
c. To fund an acquisition of an
affiliate, or the purchase or acquisition
of any facilities or equipment of an
affiliate. Note that if affiliated
transactions are contemplated in the
application, approval of the application
does not constitute approval to enter
into affiliated transactions or acceptance

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of the affiliated arrangements that
conflict with the obligations under the
Award Documents; and
d. Any other expense that is not
allowed pursuant to 2 CFR part 200,
subpart E.
e. RUS will not approve funding
under this Notice that violates the terms
of an Applicant’s existing wholesale
power contract.
D. Application and Submission
Information
1. Address to Request Application
Package. Application information and
samples concerning the New ERA
Program are available at https://
www.rd.usda.gov/programs-services/
electric-programs/empowering-ruralamerica-new-era-program. 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) or
the 711 Relay Service.
Letters of Interest and New ERA
Applications must be submitted in
accordance with the instructions
provided in the ADDRESSES section of
this NOFO.
2. Content and Form of Application
Submission.
The Agency will open an on-line
application portal by notice in the
Federal Register, the RUS website at
https://www.rd.usda.gov/programsservices/electric-programs/empoweringrural-america-new-era-program, and
Grants.gov on or before July 31, 2023.
The application process for the New
ERA Program will be conducted in two
phases. Phase one will be submission of
an LOI that includes sufficient
information to determine a pool of
prospective Applicants which advance
the goals of the statute, achieve policy
objectives, meet minimum
requirements, and are within the funds
allocated to the program. Those LOIs
that meet the criteria will be issued an
Invitation to Proceed to submit a full,
complete New ERA Application (phase
2).
i. Phase 1—LOI Submission. The LOI
must include the following:
a. Eligible Entity’s Profile and Point of
Contact Information:
1. Legal name of the Eligible Entity
and applicable organizational
information. If the Eligible Entity is a
subsidiary of one or more Eligible
Entities the Eligible Entity must list its
owners in the LOI.
2. Eligible Entity’s address, principal
place of business, and website.
3. Eligible Entity’s tax identification
number and its Unique Entity Identifier

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(UEI) number from the System for
Award Management (SAM) registry.
4. Specify if the Eligible Entity (a) is
an existing RUS borrower; (b) is a
former RUS or REA borrower; or (c) has
never been a RUS or REA borrower.
5. Name and title of Eligible Entity’s
manager and/or point of contact,
including first name, last name, title/
position, phone, email, and other
relevant contact information.
6. A Project name.
7. Location of the Project and the
applicable service area using a digital
shapefile. If the application asserts that
the Project or the applicable service area
is within a SUTA eligible area, it must
describe how such location, or such
applicable service area, is a SUTA
covered area as provided in 7 CFR
1700.105.
b. A statement as to whether the
subsequent New ERA Application will
provide a request for a Project Award or
System Award.
c. Identify the value of its net assets
and specify if the Eligible Entity has
ever been placed in receivership, court
mandated liquidation, under a workout
agreement, or has declared bankruptcy
or has had a decree or order issued for
relief in any bankruptcy, insolvency, or
other similar action.
1. If the Eligible Entity is a current
RUS borrower, the Eligible Entity must
not be in default and must be current on
any of its obligations to RUS.
2. The Applicant must submit a copy
of its audited balance sheet and income
statements for the last three years.
3. If applicable, the Eligible Entity
must provide the balance sheet and
income statements for the last three
years of the entity or entities providing
equity or security for the Award
together with an explanation of the legal
relationship among the legal entities.
4. If the Eligible Entity is a wholly or
jointly owned subsidiary of an electric
cooperative, the Eligible Entity must
provide a balance sheet and income
statement of each of its members.
d. Identify the type and amount of
financial assistance described in Section
B.5. it will seek in its application if it
receives an Invitation to Proceed. If the
Eligible Entity intends to seek a
combination of the types of financial
assistance listed in Section B.5, it must
state the amount it intends to seek for
each type of financial assistance.
e. Disclose if any foreign entity or
foreign person has an ownership
interest, voting interest, management
rights, or an equity interest in the
Eligible Entity or any rights in the
proposed project(s).
f. Estimate the proposed GHG
reduction from the Portfolio of Actions

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as provided in Section A.4. of this
Notice.
g. State the value of its Total Utility
Plant (TUP) as of December 31, 2022.
h. Provide a technical description of
the Project(s) it intends to finance if it
receives an Award. The technical
description must include the following:
1. A description of other actions
related to the Projects that will allow the
Eligible Entity to reduce its total GHG
emissions.
2. The description of the Portfolio of
Actions shall not exceed 1,500 words,
and it must include a summary of the
technical aspects of the various actions
that will allow RUS to measure the
reduction of GHG emissions resulting
from the Portfolio of Actions.
3. The Eligible Entity must provide
the amount of GHG emissions
reductions under the evaluation criteria
listed in Section E that will result from
the implementation of its proposed
Project(s) in the LOI. This will be
completed by using the RUS Achievable
Reductions Tool or submission of
comparable data. Use of other methods
by Eligible Entities may impact the
Agency’s timeline for review of the
application. Eligible Entities that choose
to use other methods will need to
demonstrate that their method provides
comparable information for the Agency
to adequately estimate the reduction of
GHG emission reductions stemming
from its proposed Portfolio of Actions.
4. The Eligible Entity must also
provide sufficient detail for RUS to
determine that the Portfolio of Actions
satisfies the technical requirements for
this program and is consistent with
industry standards and prudent utility
practices.
i. RUS reserves the right to ask
Eligible Entities for clarifying
information on, or additional
information related to, the LOI.
ii. Phase 2—Application Submission.
Upon receiving an Invitation to Proceed,
the Applicant must submit its
application package within ninety (90)
days of receipt of such invitation. The
Applicant’s application package must
contain the applicable information and
documents required in 7 CFR part 1710,
subpart D as well as the following
information and documentation:
a. Cover Letter. A signed cover letter
from the Applicant’s general manager or
highest-ranking officer requesting an
Award under this NOFO and include a
brief executive summary.
b. Articles of incorporation and
bylaws or other applicable governing
and organizational documents. The
Applicant must provide its articles of
incorporation or other applicable
organizational documents currently in

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effect, as filed with the appropriate state
office, setting forth its corporate
purpose, and the bylaws or other
governing documents currently in effect,
as adopted by its governing body.
Applicants that are active RUS
borrowers may comply with this
requirement by notifying RUS, in
writing, that there are no material
changes to the documents already on
file with RUS.
c. Environmental and Historic
Preservation Requirements. If the
Applicant has not received written
notice from RUS that the Project
environmental review process is
formally concluded as provided in 7
CFR 1970.11, it must submit documents
that establish that a review is in
progress and no ground disturbance
activities have started prior to receiving
notice that the Environmental and
Historic Preservation Requirements
have been completed. This requirement
requires the Applicant to include a
certification that construction has not
started and that it will not start prior to
obtaining written notice from RUS. The
Applicant must further state the type of
environmental review document it
believes needs to be prepared in
accordance with 7 CFR part 1970 (e.g.,
a Categorical Exclusion with an
Environmental Report, an
Environmental Assessment, or
Environmental Impact Statement in
accordance with subparts B, C, or D,
respectively). The Applicant must
provide a description of any potential
environmental controversy or
extraordinary circumstances, and the
estimated timelines for completing the
environmental process. Applicants are
strongly advised that commencing
construction prior to environmental or
historic preservation clearance could
make a Project ineligible for RUS
financing.
d. Financial Forecast. In order to
demonstrate that the loan is feasible as
required in 7 CFR 1710.112, the
Applicant must submit a financial
forecast. For System Awards, the
financial forecast must cover at least 10
years from the commercial operating
date of the Project to be financed, and
it must demonstrate that the Applicant’s
operation is economically viable and
that the proposed loan is financially
feasible. RUS may request projections
for a longer period of time or additional
information if RUS deems it necessary
based on the financial structure of the
Applicant and necessary to make a
determination with respect to Financial
Feasibility. For Project Awards, RUS
may require that the financial forecast
cover a period equal to the maturity
period of the loan.

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RUS will provide the Applicant with
the specific information and data that
must be included in the financial
forecast in the Invitation to Proceed.
e. Ratepayer Benefit: The Award must
provide demonstrable benefits to rate
payers located in the service area. The
Applicant must demonstrate in its New
ERA Application that the consumer and
financial benefits resulting from the
Award will be shared between the
Awardee and the Off-taker. This must be
shown through a long-range financial
forecast scenario that establishes that
the revenue per kilowatt hour (KWh) the
Applicant will receive from the sale of
the power to the Off-taker would have
been higher but for the Award.
Additionally, a net present value
calculation should be performed to
demonstrate the financial benefit to the
rate payer resulting from the Award
versus business as usual. The Agency
may also request additional ratepayer
information over the course of the
program.
f. Power Purchase Agreement (PPA). If
the Applicant proposes to sell the
energy generated from the Project to an
Off-taker, the Applicant must provide
an executed copy of the PPA with the
Off-taker. If the Applicant is unable to
execute a final PPA with the Off-taker
prior to submitting its application, it
must submit a draft of the PPA with its
application and then submit the
executed copy of the PPA when it is
executed. RUS will not approve a New
ERA Application that proposes to sell
the energy to an Off-taker unless and
until the Applicant submits an executed
PPA with the Off-taker and RUS
approves such PPA.
Further, if the Applicant proposes to
sell power generated from the Project to
an Off-taker under a PPA, the Applicant
must provide a draft copy of the PPA
with the Application, which must
include two different rate schedules;
one for the case without the provision
of the Award and the other for the case
with the provision of the Award.
Because the PPA is essentially the
mechanism by which consumers will
benefit from the New ERA Program, all
draft PPAs must be approved by RUS
prior to being executed. RUS approval
of the New ERA Application is
predicated upon an executed PPA that
has been approved by the Agency.
g. Power Resources Owned, Co-owned
or Leased. If applicable, provide a
discussion or table of the existing power
resources available to the Applicant that
includes generation facilities owned, coowned or leased. The information
provided should include: name of plant
and unit; ownership interest (%); type

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of unit and fuel used; net peak capacity;
and in-service date.
h. Power Purchase Contracts. If
applicable, provide a discussion of the
Applicant’s power purchase contracts
(with terms greater than two years) that
describes the capacity and energy
resources purchased. The information
should include: type of contract (take-or
pay, unit power purchase, parties to the
contract, amount (capacity and energy);
and term and expiration date.
i. Power Sales Contracts. If applicable,
a description of any existing power
supply arrangements, such as wholesale
power contracts, between an Off-taker
and its members including the type of
agreements (e.g., all or partial
requirements), the initial execution
dates, and the dates the agreements
expire. The Applicant must provide
copies of the agreements if requested by
the Agency.
j. Engineering Report. A signed, final
engineering report or final engineering
and power cost study must be provided
with the New ERA Application or soon
thereafter. The report must describe the
purpose, design, costs, construction,
and operation of the Project(s). A draft
engineering report must be submitted
for RUS approval prior to it being
finalized and signed. RUS approval of
the engineering report is required prior
to the obligation of an Award; however,
the Awardee may amend the
engineering report with RUS’ written
approval after obligation. The finalized
engineering report must be signed or
approved by licensed professional
engineer.
k. Project Contracting. The Applicant
must provide a list of all engineering,
procurement, and construction contracts
it intends to use on the Project(s), with
a brief description and cost estimate of
each contract. At the Agency’s
discretion, any contracts selected by the
Agency for review and approval must be
submitted within period-of-time
requested by the Agency. In no event
will Award funds be obligated prior to
RUS approval and any necessary
applicable government approval of the
selected Project contracts.
l. Interconnection Agreements.
Agreements required to interconnect a
Renewable Energy System or ZeroEmission System or Energy Storage
System or microgrid system to a
distribution or transmission system
must be included with the application.
If the Applicant is unable to submit the
necessary interconnection agreement
prior to submitting its New ERA
Application, it must submit a draft of
the interconnection agreement with its
application and then submit the
executed copy of the interconnection

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agreement when it is executed. RUS
must approve any interconnection
agreement before an Award is obligated.
m. System Impact Studies. The status
and summary of any related System
Impact Studies, as they may relate to the
interconnection of the Project with a
distribution or transmission network,
must be provided with the application.
System Impact Studies must be
conducted, as applicable, to include
load flow studies, short circuit analysis,
system stability analysis, and
conclusions (e.g., identify voltage,
overload, stability problems and
proposed actions or contingencies;
single contingency analysis of proposed
facilities; transmission constraints; and
system improvements needed). The
nature of any required system upgrades
and associated costs to be incurred by
the Awardee, Off-taker or other entity
must be identified. The Agency may
request a copy of any System Impact
Studies or links to review such studies.
The Agency will not obligate an Award
until the Applicant submits the System
Impact Study.
n. Transmission Service Agreement.
Transmission Service Agreements
required to export, transmit or deliver
the power from the Project to the Offtaker must be included with the
application. These agreements must
receive Agency approval and the
Agency will not obligate an Award until
it has approved all necessary
Transmission Service Agreements.
o. Other Major Agreements. The
Applicant must provide a list and a brief
description-of all other major
agreements that will need to be
executed for the Project. Such
agreements, if applicable, include, but
are not limited to operations and
maintenance arrangements, joint
ownership arrangements, fuel
management, and fuel supply and
transportation. Agreements selected for
approval by the Agency should be
submitted within the period of time
requested by the Agency. RUS will not
approve the New ERA Application until
all agreements requested for review
have been approved by the Agency.
p. Meteorological Data and Studies.
Renewable Energy Systems such as solar
and wind projects must be supported
with meteorological data and studies to
determine the expected energy
generation of the facility during the
initial year of operation. The Applicant
must identify the amount and basis of
any annual degradation in energy
output of the Renewable Energy
Systems.
q. Fuel and Fuel Transportation
Strategies. If applicable, the Applicant
must describe the fuel and fuel

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transportation strategies of the Project
and show that the fuel supply for the
life of the Project is adequate. Fuel
supply contracts and fuel transportation
contracts must be identified, including
the term of each contract. Copies of the
fuel contracts or arrangements must be
provided if requested by the Agency.
r. Sources and Uses of Water. The
Applicant must identify the uses and
source of water for the Project and
provide evidence that the water supply
will be adequate to meet both daily
requirements and for the life of the
Project. If requested by the Agency, (1)
the Applicant must provide copies of
any agreements or arrangements that
would be used to purchase or receive
water used and consumed by the
Project; and/or (2) the applicable water
balance diagram of the facilities must be
provided.
s. Technical and Financial
Description. The technical and financial
description of the Portfolio of Actions
shall not exceed 1,500 words per Project
proposed in the New ERA Application
and must include the following:
1. Description of each Project being
requested for financing, including
Project name, location, type, size, and
renewable or zero-emission energy units
generated and saved or carbon captured.
2. For each Project, submit an updated
or revised digital shapefile of the
proposed service area if such service
area has changed from that contained in
the digital shapefile submitted with the
LOI.
3. For each Project, indicate the
estimated dates to start construction and
to achieve commercial operation.
4. Verification that the Project(s) will
be designed, constructed and operated
based on proven Commercially
Available Technology.
5. The estimated total capital cost of
each Project and the amount of Award
funds being requested to finance each
Project.
t. Real Estate Agreements. If the
Applicant is leasing the real estate upon
which it will build and operate the
Project, the Applicant must submit an
executed copy of the lease agreement
with the application. The lease
agreement must have a provision that
allows the Applicant to collaterally
assign the lease to RUS as security for
the loan. Further, to the extent that the
lessor under any lease with the
Applicant has executed a mortgage or
deed of trust on the real estate in
question, the mortgagee must execute an
attornment and non-disturbance
agreement in favor of the Applicant that
will allow the Applicant to continue to
lease the real property in question and
operate the Project in the event of the

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lessor’s default under the mortgage or
deed of trust. RUS will not obligate an
Award until the Applicant submits all
applicable Real Estate Agreements.
u. Community Benefit Plan. The
Applicant must confirm in its
application that it will develop a
Community Benefit Plan(s) through
stakeholder engagement within the first
year after the date RUS obligates the
Award. The Agency will not advance
any Award funds until the Awardee has
developed its Community Benefit
Plan(s). The Agency will not advance
the grant portion of an Award until the
Awardee implements its Community
Benefit Plan(s).
The Applicant must identify in its
application how it will develop its
Community Benefits Plan(s) and any
initial benefits to residents within the
service area expected beyond the Project
itself, including, but not limited to at
least one of the following:
1. Investments in the American
workforce such as local worker
retraining and job creation;
2. The launch or expansion of
systemic or consumer-based energy
efficiency and carbon reduction
measures such as providing on-bill
financing or Pay-as-You-Save programs
to improve the energy efficiency and
beneficial electrification for consumers;
3. Land use agricultural integration
that demonstrates ways for agricultural
producers to benefit from clean energy
projects; and
4. Diversity, equity, inclusion and
accessibility and environmental justice
goals set forth in Executive Order 14008,
Part II, Section 223, the Justice40
Initiative, which aims to assure that 40
percent of the overall benefits of certain
federal investments flow to
disadvantaged communities.
v. Refinancing and Modifications. If
the Applicant is seeking to refinance or
modify existing debt, it must provide
sufficient information and data to
demonstrate how it will utilize the cash
savings generated from the proposed
loan refinancing or modification to
purchase Renewable Energy, Renewable
Energy Systems, Zero-Emission
Systems, or Carbon Capture and Storage
Systems; to deploy such systems; or to
make energy efficiency improvements to
electric generation and transmission
systems.
w. Award Type. The Applicant must
specify what type of Award (loan only,
grant only, loan/grant combination, and/
or loan refinancing/modification) it is
seeking. If the Applicant is seeking more
than one type of Award, it must clearly
state the type of Award it is seeking for
each Project and the amount of each
type of Award.

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x. Non-RUS Funds. The Applicant
must identify the source of any nonRUS funds that it intends to utilize to
finance the cost of the proposed Project
in its application.
y. Tribal Government Resolution of
Consent. For each Project that will be
sited on Tribal Lands where a Federally
Recognized Tribe has regulatory
authority and for each Project whose
service area includes Tribal Lands
where a Federally Recognized Tribe has
regulatory authority, certification from
the appropriate Tribal official that it
consents to or has no objection to the
Project is required. The appropriate
certification is a Tribal Government
Resolution of Consent. The appropriate
Tribal official is the Tribal Council of
the Federally Recognized Tribe(s) with
regulatory jurisdiction over the Tribal
Lands at issue. Any Applicant that fails
to provide a certification to provide
service on the Tribal Lands identified in
the application will not be considered
for funding with respect to the
infrastructure proposed to be
constructed on Tribal Lands.
z. Eligible Costs. The Applicant must
include in its New ERA Application a
breakdown of the estimated eligible
costs listed in Section C.3.i for which it
intends to seek reimbursement.
aa. Additional Information. RUS
reserves the right to require the
Applicant to provide additional
information or documentation in
support of its application.
3. System for Award Management and
Unique Entity Identifier.
i. At the time of application, each
Applicant must have an active
registration in the System for Award
Management (SAM) before submitting
its application in accordance with 2
CFR part 25. To register in SAM, entities
will be required to obtain a Unique
Entity Identifier (UEI). Instructions for
obtaining the UEI are available at
https://sam.gov/content/entityregistration.
ii. Applicants must maintain an active
SAM registration, with current, accurate
and complete information, at all times
during which it has an active Federal
award or an application under
consideration by a Federal awarding
agency.
iii. Applicants must ensure they
complete the Financial Assistance
General Representations and
Certifications in SAM.
iv Applicants must provide a valid
UEI in its application, unless
determined exempt under 2 CFR 25.110.
v. The Agency will not make an
Award until the Applicant has complied
with all SAM requirements including
providing the UEI. If an Applicant has

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not fully complied with the
requirements by the time the Agency is
ready to make an Award, the Agency
may determine that the Applicant is not
qualified to receive a Federal Award
and use that determination as a basis for
making a Federal Award to another
Applicant.
4. Submission Dates and Times.
i. Letters of Interest. Letters of Interest
can be submitted beginning at 11:59
p.m. ET on July 31, 2023, and until
11:59 p.m. ET on August 31, 2023.
Letters of Interest will not be accepted
after 11:59 p.m. ET on August 31, 2023.
ii. Eligible Entities that receive a
written invitation to submit a full New
ERA Application will have sixty (60)
days from the date RUS sends the
invitation to submit such a full New
ERA Application. RUS reserves the
right, in its sole discretion, to extend the
sixty (60)-day deadline upon the written
request of the Applicant if the Applicant
demonstrates to the satisfaction of the
Administrator that exceptional
circumstances exist to warrant the
extension.
iii. RUS also reserves the right to ask
Applicants for clarifying information
and additional verification of assertions
in the LOI and New ERA Application.
5. Intergovernmental Review.
Executive Order (E.O.) 12372,
‘‘Intergovernmental Review of Federal
Programs,’’ is not required for this
Program.
6. Funding Restrictions.
i. Projects that receive support from
the PACE Program for construction will
not be eligible for support for the direct
purchase of power produced by that
supported Project.
ii. The Agency will only finance
Commercially Available Technologies.
iii. Given the statutory focus on
reductions in GHG, the Agency will not
utilize funds made available under this
funding notice to: (a) finance new
investments in new sources of fossil
fueled power; or (b) system
improvements at existing fossil fueled
generation plants, regardless of whether
such improvement is incorporated in
the scoring of the Applicant’s Portfolio
of Actions, except Carbon Capture
Systems and Energy Storage Systems.
iv. RUS will not provide funding
under this NOFO for any Project if
construction of the Project commenced
before August 16, 2022, the effective
date of the IRA.
7. Other Submission Requirements.
i. The Agency will accept LOIs
through an online mechanism as opened
on or before July 31, 2023, unless
otherwise indicated by the Agency.
ii. By submitting the LOI, the Eligible
Entity certifies to RUS that it has the

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intent and ability to submit a complete
New ERA Application within ninety
(60) days of RUS emailing an Invitation
to Proceed should RUS provide such
Invitation to Proceed.
iii. An Applicant’s receipt of an
invitation to submit a full New ERA
Application is not a guaranty that the
Applicant will receive an Award or that
Awards will be offered on the same
terms as the Applicant sought.
iv. The Agency will accept
consolidated LOIs and New ERA
Applications from groups of Eligible
Entities such as a generation and
transmission utility and its distribution
members or groups of distribution
utilities. The Agency will score the
consolidated LOIs and New ERA
Applications by aggregating the
estimated reduction in GHG emissions
of each the Eligible Entity’s Portfolio of
Actions into one score. A consolidated
LOI or New ERA Application will
compete in either Category I, Category
II, or Category III, as detailed in Section
E.2.i.c., based on the combined TUP of
the group, which will be the sum of the
TUP of each participating Eligible Entity
in the group. The Agency, however,
reserves the right to evaluate each
Eligible Entity’s proposed Projects in
order to determine the technical and
Financial Feasibility of each Eligible
Entity’s proposed Project or Projects
separately. Further, the Agency may
review the Financial Feasibility of the
New ERA Application on a
disaggregated basis by conducting the
underwriting individually for each of
the individual Applicants. Consolidated
Applicants must also be prepared to
accept disaggregated contractual and
financial commitments relating to their
consolidated New ERA Application.
Further, each Applicant in a
consolidated LOI or New ERA
Application must have an active
SAM.gov registration at the time the
consolidated LOI or New ERA
Application is submitted.
v. Wholly or jointly owned
subsidiaries of cooperatives are
included in the definition of Eligible
Entity under Section 22004 of the IRA.
The Agency, therefore, will accept a
single application from a joint venture
entity between two or more Eligible
Entities. A LOI or New ERA Application
submitted by a joint venture entity will
be reviewed and evaluated as any other
LOI or New ERA Application requesting
a Project Award. Further, in the LOI,
each owner of the joint venture entity
must also attest to its willingness and
demonstrate its ability to provide
adequate security for their share of the
Award as well as their performance of
all related program commitments.

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vi. The Agency will accept only one
New ERA Application per Applicant
whether individually or as part of a
consolidated application.
vii. Applicants who have submitted
proposals under the funding notice for
the PACE Program may not include the
same proposal or project for funding
under this Notice. The Agency will
consider separate, single proposals
under the PACE and New ERA Programs
from the same Applicant provided the
proposed actions are separate and
distinct. In order to receive separate
PACE and New ERA Awards the
Applicant must demonstrate to the
satisfaction of the Administrator that the
Applicant has the financial and
technical ability to carry out both
Awards.
viii. For purposes of this NOFO, an
electric cooperative and any subsidiary
in which it holds a majority ownership
or voting interest shall be considered
one entity for purposes of determining
the 25 percent limitation on the grant
component of a New ERA Award as
provided in section 22004 of the IRA.
E. Letters of Interest and Application
Review Information
1. Criteria.
i. Letters of Interest. Applicants must
submit an LOI that contains the
information required in Section D.2.i. of
this Notice. The LOIs will be used to
invite a pool of final applications that
advance the purposes of the New ERA
Program.
RUS will review and evaluate the
LOIs to determine if they are eligible,
competitive and within the funding
limits and policy objectives of the New
ERA Program. RUS will evaluate the
LOIs based on the criteria listed in
Section C.1.iv. and E.1.ii. below. Thus,
Eligible Entities are encouraged to
consider the criteria in Section C.1.iv.
and E.1.ii. below when preparing their
LOI’s. Letters of Interest in which the
technical description of the Project(s)
exceed 1,500 words may be disregarded.
Once RUS has reviewed and
evaluated the LOIs, Eligible Entities will
be informed if they are invited to submit
a New ERA Application. Eligible
Entities that receive an Invitation to
Proceed will have sixty (60) days from
when the date of the Invitation to
Proceed is sent to submit a New ERA
Application to RUS. In the Invitation to
Proceed, the Agency reserves the right
to: (a) suggest modifications to the
proposal outlined in the LOI; (b)
negotiate a final package of assistance
with each Eligible Entity; and (c) update
an Applicant’s evaluation based on the
full application proposal submitted.
Each Eligible Entity that receives an

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Invitation to Proceed will have a
General Field Representative (GFR)
assigned to it. An Invitation to Proceed
does not constitute an offer by the
Agency, nor does it constitute approval
of the Applicant’s New ERA
Application.
ii. New ERA Application. RUS will
review each New ERA Application
based upon: (a) RUS’ general
underwriting requirements contained in
7 CFR part 1710, subpart D; and (b) the
Applicant’s Portfolio of Actions using
the selection criteria identified in 1
through 4 below. Each of the metrics in
the criteria below will be generated by
the Achievable Reductions Tool or other
methods acceptable to RUS as noted
above. Pursuant to IRA section 22004,
the heaviest weight will be given to the
reduction of GHG emissions (CO2e).
Points will be awarded as follows:
1. Annual tons of carbon dioxide
equivalent (CO2e) reduced (from
generation resources owned or
purchased): up to 30 points.
2. Annual tons of CO2e avoided: up to
10 points.
3. Percentage difference in renewable
or zero-emission energy in the energy
mix (from generation resources owned
and purchased): up to 10 points.
4. Percentage decrease in the carbon
intensity of the energy mix (from
generation resources owned and
purchased): up to 10 points.
2. Review and Selection Process.
i. RUS will acknowledge the receipt of
LOIs and New ERA Applications via an
email to the Applicant. After receipt of
LOIs and New ERA Applications, RUS
will take the following actions:
a. Incomplete LOIs and applications
or ineligible applications as of the
deadline for submission will not be
considered further, and the Applicant
will be notified in writing.
b. Letters of Interest and New ERA
Applications will be reviewed for
completeness and ranked based on the
scoring criteria in E.1.ii. above.
c. Applicants with complete
applications will be placed into one of
three categories based on their year
ending 2022 TUP value.
1. Category I: Applicants with a TUP
value equal to or over $500 million.
2. Category II: Applicants with a TUP
value under $500 million but over $200
million.
3. Category III: Applicants with a TUP
value equal to or less than $200 million.
d. Applicants will then compete for
Awards within their category and based
on the evaluation of metrics that reflect
achieving the greatest reductions in
GHG emissions. RUS expects to utilize
at least 60 percent of the funds made
available under this Notice for Category

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I Applicants, up to 20 percent of funds
made available under this Notice for
Category II, and up to 20 percent of the
funds made available under this Notice
for Category III Applicants. This split in
the value of TUP reflects the likely
lower total costs for smaller entities to
transition to Renewable Energy Systems
or Zero-Emissions Systems and the
desire to ensure that both large and
small Applicants are able to benefit
from the program while ensuring that
the program meets its statutory
requirement to achieve the greatest
reduction in GHG.
e. RUS will not approve a specific
request for financial assistance if RUS
determines that the requested financial
assistance imposes an undue risk to
RUS’ loan portfolio in general.
f. For the purposes of this NOFO, the
Agency will apply the SUTA provisions
of section 306F of the RE Act as it
would to a program contained in section
306F(a)(1).
3. Other Information.
The Administrator shall have the
authority and sole discretion, to: (i)
Shift funding between Category I,
Category II, and Category III Applicants,
(ii) Offer financing in different amounts
or on different terms than what the
Applicant proposes in its application;
(iii) Reject any application or any
Project in an application regardless of
RUS’ evaluation of the Project that the
Administrator determines is not eligible,
feasible, securable, or executable within
the timeframe of the Award; (iv) Add
additional funding to this competition if
such funding becomes available; and (v)
Make an offer that references funding
from other RUS programs separate from
a New ERA Award.
F. Federal Award Administration
Information
1. Federal Award Notices.
i. Award Notices. Applicants will be
notified of their application’s status as
follows:
a. Applicants not selected for funding
will be notified in writing.
b. Successful Applicants will receive
a Commitment Letter from the
Administrator specifying: (i) The total
amount of the Award approved by RUS;
and (ii) Any additional controls on its
financial, investment, operational and
managerial activities; acceptable
security arrangements; and such other
conditions deemed necessary by the
Administrator to adequately secure the
Government’s interest and ensure
repayment. Upon receipt of the
acceptance of the Award from the
Awardee, RUS will begin to prepare the
Award Documents with the assistance
of the Applicant. Upon completion of

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the Award Documents, RUS will
forward those documents to the
Applicant.
1. The Administrator may incorporate
any applicable provisions of 2 CFR part
200, in addition to the provisions of 2
CFR part 200 that have been
incorporated into this NOFO, into the
Award Agreement if the Award is
comprised only of a grant.
2. Receipt of a Commitment Letter
from the Administrator does not
authorize the Awardee to commence
performance under the Award. All RUS
requirements and Award conditions
specified in the Commitment Letter
must be met before loan or grant funds
will be disbursed. Applicants may not
commence construction on any Project
until RUS provides the Applicant with
written environmental clearance of the
Projects as provided in 7 CFR part 1970.
RUS will notify the Awardee when it is
authorized to commence performance
using New ERA funds.
ii. Funding Disbursements and
Restriction. The Agency will use all
tools at its disposal to obligate funds in
a timely manner. RUS will disburse
funds to the Awardee in accordance
with the terms of the executed Award
Documents, this NOFO, and the
applicable provisions of 7 CFR parts
1710 through 1730, 1767, 1773, 1787,
and 1970 (https://www.ecfr.gov/current/
title-7/subtitle-B/chapter-XVII).
a. Except as related to a stranded asset
loan, all Award funds will be disbursed
as a reimbursement for Eligible Award
Costs.
b. The executed Award Agreement
will contain a provision stating that no
Award funds will be advanced after
September 30, 2031. The Agency will
set a last day for advance in the Award
Agreements well in advance of this
statutory limit. All undisbursed funds as
of close of business on September 30,
2031, will automatically be rescinded.
c. Unless stated otherwise in the
NOFO or in the applicable Award
Agreement, RUS will advance grant
funds upon the Awardee’s completion
and testing of the Project to the
satisfaction of RUS as provided in
Section B.5.i.c. of this NOFO and the
reporting of such testing to RUS.
d. The Administrator may condition
any advance on the Awardee meeting
specific requirements prior to making
any advance on an Award.
e. 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 the Project.

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iii. Award term. Except Awards that
include a loan refinancing or loan
modification, Awards will be for a term
not to exceed the lesser of: (a) The
expected useful life of the Project: (b)
The term of the PPA (if required for
execution between the Awardee and the
Off-taker): (c) The term of the lease for
the land that the Project will occupy (if
such land is not owned by the
Awardee), (d) The expiration dates of
power supply arrangements between the
Awardee and its members should the
Awardee provide the power supply
needs of the members under such power
supply arrangements; or (e) 35 years.
The term of an Award that includes a
loan refinancing or loan modification
will be determined on a case-by-case
basis based on the Financial Feasibility
of the Award.
iv. Interest rate. Loans made under
the New ERA Program will bear interest
per annum at the percentages specified
in section B of this NOFO.
v. Repayment. Except for a loan
relating to loan refinancing or loan
modification, the repayment of each
advance on a loan to the Awardee must
be fully amortized over the remaining
term of the loan as determined in
Section F.1.iii. The repayment of an
advance on a loan relating to the
refinancing or modification of an
existing loan must be fully amortized
over the term of the loan as specified in
the Award Documents. The
amortization will be premised upon
equal monthly debt service payments
over the term of the loan portion of the
Award. Further, unless otherwise
provided in the NOFO, the provisions of
7 CFR parts 1710 and 1714 (https://
www.ecfr.gov/current/title-7/subtitle-B/
chapter-XVII), applicable to direct
loans, shall apply to any loan made
pursuant to an Award.
vi. Prepayment. An Awardee may
prepay the loan component of an
Award, at par, at any time. All other
terms under the Award Documents will
continue for any remaining portion of
the Award.
vii. Financial ratios. The requirements
for coverage ratios will be set forth in
the Commitment Letter and the
Awardee’s Award Documents with RUS.
The minimum coverage ratios required
of the Awardee, whether applied on an
annual or average basis, will be
determined by the Administrator on
case-by-case basis based on the risk
profile of the Awardee and specific loan
features. Existing RUS borrowers will be
subject to their current financial
coverage ratios contained in the
applicable loan agreements or
indentures unless otherwise determined
by the Administrator. When new Award

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Documents are executed, the
Administrator may, on a case-by-case
basis, increase the coverage ratio of the
Awardee if the Administrator
determines that higher ratios are
required to ensure the repayment of a
loan made by RUS. Also, the
Administrator may, on a case-by-case
basis, reduce the coverage ratios if the
Administrator determines that the lower
ratios are required to ensure the
repayment of the loan made by RUS.
viii. Equity requirements. As noted in
Section B.5.i.b., RUS will require the
Awardee to provide at least 25 percent
equity in the Project for a Project
Award. For System Awards, the
Administrator may, in the
Administrator’s sole discretion, deem it
acceptable to loan the full cost of the
Project. The required equity position
will be determined by the Administrator
on a case-by-case basis and will be set
forth in the Commitment Letter and the
Award documents as a condition to the
Award. As noted above, RUS may
consider allowing the Awardee to meet
the equity requirements by utilizing any
grant component of the Award or any
other grant, if permitted under
applicable authorities. Further, RUS
may consider allowing the Awardee to
meet the equity requirement by utilizing
any applicable investment tax credit or
an elective direct payment in lieu of the
investment tax credit relating to the
Project as permitted in the Internal
Revenue Code of 1986 and its
implementing regulations. In each case,
RUS must find that such uses of the tax
benefits relating to the Project are
financially feasible. If the Award is
grant only because the Awardee is
financing the portion of the cost of the
Project not covered by the grant solely
from a non-RUS source, the
Administrator may consider waiving the
equity requirement.
ix. Opinion of counsel. An opinion of
counsel is required at closing and must
be acceptable to the Administrator,
opining that the Awardee is properly
organized and has the required
corporate authority to enter into the
proposed transaction. It must also
identify the proposed collateral to
secure the Award and certify that such
collateral is free of liens or identify any
issues that may arise for the
Government regarding the securing and
perfecting of a first and prior lien on
such property comprising the collateral.
x. The Award Documents. The
Agency will provide the Awardee with
the applicable Award Documents that
the Award must execute.
xi. Award term and conditions. The
Administrator reserves the right to
modify or waive certain requirements if

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the Administrator believes such
modifications or waiver are in the best
interest of the Government and the
Administrator has determined that the
loan component of any Award will be
repaid in the designated time period
and the security for such loan is
adequate. Also, the Administrator, at
their sole discretion, may add such
terms and conditions in an Award
Agreement to ensure the loan is timely
repaid and is adequately secured.
Additionally, as provided in 7 U.S.C.
1981(b)(4) the Administrator retains the
right to modify the terms of any Award
pursuant to the terms of that authority.
xii. Reporting.
a. Performance Reporting. RUS will
establish periodic reporting
requirements. These will be enumerated
in the Award Documents.
b. Accounting Requirements: RUS
accounting requirements include
compliance with Accounting Principles
Generally Accepted in the United States
(GAAP), as well as compliance with the
requirements of the applicable
regulations: 2 CFR part 200 subpart E,
48 CFR 31, and the system of accounting
prescribed in 7 CFR part 1767. The
Administrator may modify the
accounting requirements if it is deemed
necessary to satisfy the purpose of the
statute.
c. Audit Requirements: Awardees will
be required to prepare and furnish to
RUS audits as follows:
1. Non-Federal Entities shall provide
RUS with an audit pursuant to 2 CFR
part 200, subpart F. The Awardee must
follow subsection 502 in determining
federal awards expended. All RUS loans
impose an ongoing compliance
requirement for the purpose of
determining federal awards expended
during a fiscal year. In addition, the
Awardee must include the value of new
federal loans made along with any grant
expenditures from all federal sources
during the Awardee’s fiscal year.
Therefore, the audit submission
requirement for this program begins in
the Awardee’s fiscal year that the loan
is made and thereafter, based on the
balance of federal loan(s) at the
beginning of the audit period. All
required audits must be submitted
within the earlier of: (i) 30 calendar
days after receipt of the auditor’s report;
or (ii) nine months after the end of the
Awardee’s audit period; and
2. For all other entities, Awardees
shall provide RUS with an audit within
120 days after the as of audit date in
accordance with 7 CFR part 1773. Note
that with respect to advances that
contain loan funds, the audit is required
after an advance has been made, and,
thereafter, from the close of each

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subsequent fiscal year until the loan is
repaid in full. With respect to advances
that only contain grant funds, the audit
is required until all grant funds have
been advanced or rescinded and all
financial compliance requirements have
been fully satisfied. While an audit is
required, Awardees must also submit a
report on compliance and internal
controls over financial reporting, as well
as a report on compliance with aspects
of contractual agreements and
regulatory requirements.
xiii. Monitoring. Awardees must
comply with all reasonable RUS
requests to support ongoing monitoring
efforts including monitoring an
Awardee’s construction progress and
progress towards achieving project
related GHG reductions. The Awardee
must afford RUS, through their
representatives, a reasonable
opportunity, at all times during business
hours and upon prior notice, to have
access to and the right to inspect any or
all books, records, accounts, invoices,
contracts, leases, payrolls, timesheets,
cancelled checks, statements, and other
documents, electronic or paper of every
kind belonging to or in possession of the
Awardee or in any way pertaining to its
property or business, including its
parents, affiliates, and subsidiaries, if
any, and to make copies or extracts
therefrom. Failure to comply with
reasonable RUS requests could result in
a termination of the Award Agreement.
2. Administrative and National Policy
Requirements.
The items listed in this Notice
implement the appropriate
administrative and national policy
requirements, which include but are not
limited to:
i. Execution of an Award Agreement
and related Award Documents;
ii. Compliance with other applicable
Federal statutes and regulations to
include 7 U.S.C 8103, the generally
applicable provisions of 7 CFR parts
1700 through 1730, 1767, 1773, and
1787, 1970 or any successor regulations
(https://www.ecfr.gov/current/title-7/
subtitle-B/chapter-XVII).
iii. Except as provided in the NOFO
and in the executed Award Documents,
all other generally applicable
regulations contained in 7 CFR Chapter
XVII will apply to New ERA Program
Awards.
iv. All existing RUS Electric Program
bulletins apply (https://
www.rd.usda.gov/resources/regulations/
bulletins).
v. Additional requirements that apply
to recipients selected for this program
can be found in the Grants and
Agreements regulations of the
Department of Agriculture codified in 2

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Federal Register / Vol. 88, No. 94 / Tuesday, May 16, 2023 / Notices
CFR parts 180, 400, 415, 417, 418, 421;
2 CFR parts 25 and 170 (https://
www.ecfr.gov/current/title-2); and 48
CFR 31.2 (https://www.ecfr.gov/current/
title-48/chapter-1/subchapter-E/part-31/
subpart-31.2), and successor regulations
to these parts.

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G. Federal Awarding Agency Contact(s)
For general questions about this
announcement, please contact the point
of contact listed in the FOR FURTHER
INFORMATION CONTACT section of this
Notice.
H. Build America, Buy America
Requirements
Infrastructure Project Awards under
this announcement must meet the
following domestic preference
requirements:
1. Funding to Non-Federal Entities.
Awardees that are Non-Federal Entities
shall be governed by the requirements of
section 70914 of the Build America, Buy
America Act (BABAA) within the
Infrastructure Investment and Jobs Act
(IIJA), and its implementing regulations.
The Act requires the following Buy
America preference:
i. All iron and steel used in the
Project are produced in the United
States. This means all manufacturing
processes, from the initial melting stage
through the application of coatings,
occurred in the United States.
ii. All manufactured products used in
the Project are produced in the United
States. This means the manufactured
product was manufactured in the
United States, and the cost of the
components of the manufactured
product that are mined, produced, or
manufactured in the United States is
greater than 55 percent of the total cost
of all components of the manufactured
product, unless another standard for
determining the minimum amount of
domestic content of the manufactured
product has been established under
applicable law or regulation.
iii. All construction materials
(excludes cement and cementitious
materials, aggregates such as stone,
sand, or gravel, or aggregate binding
agents or additives) are manufactured in
the United States. This means that all
manufacturing processes for the
construction material occurred in the
United States.
BABAA only applies to articles,
materials, and supplies that are
consumed in, incorporated into, or
affixed to an infrastructure project. As
such, it does not apply to tools,
equipment, and supplies, such as
temporary scaffolding, brought to the
construction site and removed at or
before the completion of the

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infrastructure project. Nor does BABAA
apply to equipment and furnishings,
such as movable chairs, desks, and
portable computer equipment, that are
used at or within the finished
infrastructure project. Any requests for
waiver of these requirements must be
submitted pursuant to USDA’s guidance
available online at https://
www.usda.gov/ocfo/federal-financialassistance-policy/
USDABuyAmericaWaiver.
2. Funding to all other entities. All
other Awardees shall be governed by the
Agency’s Buy American requirement at
7 CFR part 1787. Rural electric
cooperatives, for-profit organizations,
and investor-owned utilities are not
considered Non-Federal Entities. Any
requests for waiver of these
requirements must be submitted
pursuant to those regulations.
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., this action meets the
threshold for a major rule, as defined by
5 U.S.C. 804(2), because it will result in
an annual effect on the economy of
$100,000,000 or more. Accordingly, the
Agency will not take action on LOIs
until sixty (60) days has lapsed from
notification to Congress.
2. Administrative Procedure Act
Statement. This NOFO is being issued
without advance rulemaking or public
comment. The Administrative
Procedure Act of 1946 (APA), as
amended (5 U.S.C. 553), has several
exemptions to rulemaking requirements.
Among them is an exception for a
matter relating to ‘‘loans, grants,
benefits, or contracts.’’
3. Paperwork Reduction Act. In
accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C.
chapter 35), USDA requested that the
Office of Management and Budget
(OMB) conduct an emergency review of
a new information collection that
contains the Information Collection and
Recordkeeping requirements contained
in this Notice.
In addition to the emergency
clearance, the regular clearance process
is hereby being initiated to provide the
public with the opportunity to comment
under a full comment period, as the
Agency intends to request regular
approval from OMB for this information
collection. Comments from the public
on new, proposed, revised, and
continuing collections of information
help the Agency assess the impact of its
information collection requirements and

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31231

minimize the public’s reporting burden.
Comments may be submitted regarding
this information collection through the
Federal eRulemaking Portal at https://
www.regulations.gov. In the ‘‘Search for
dockets and documents on agency
actions’’ box, type in the DOCKET #
from this notice to submit or view
public comments and to view
supporting and related materials
available electronically. Information on
using Regulations.gov, including
instructions for accessing documents,
submitting comments, and viewing the
docket after the close of the comment
period, is available through the site’s
‘‘FAQ’’ link. Comments on this
information collection must be received
by July 17, 2023.
Title: Empowering Rural America
(New ERA) Program.
OMB Control Number: 0572–NEW.
The following estimates are based on
the average over the first 3 years the
program is in place.
Estimate of Burden: Public reporting
burden for this collection of information
is estimated to average 31.853 hours per
response.
Respondents: Electric cooperatives,
subsidiaries of electric cooperatives.
Estimated Number of Respondents:
250.
Estimated Number of Responses per
Respondent: 23.296.
Estimated Number of Responses:
5,824.
Estimated Total Annual Burden
(hours) on Respondents: 185,514.
Copies of this information collection
may be obtained from Pamela Bennett,
Management Analyst, Regulatory
Division, RD Innovation Center,
telephone: 202–720–9639; email:
[email protected]. All
responses to this information collection
and recordkeeping notice will be
summarized and included in the request
for OMB approval. All comments will
also become a matter of public record.
4. National Environmental Policy Act.
All recipients under this Notice are
subject to the requirements of 7 CFR
part 1970.
5. Wage Rate Requirements. As
provided in 7 U.S.C. 8103(f) all Projects
funded under the New ERA Program, as
a condition of receiving a grant or loan
under this section, an Eligible Entity
shall ensure that all laborers and
mechanics employed by contractors or
subcontractors in the performance of
construction work financed, in whole or
in part, with the grant or loan, as the
case may be, shall be paid wages at rates
not less than those prevailing on similar
construction in the locality, as
determined by the Secretary of Labor in

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accordance with 40 U.S.C. 31, sections
3141 through 3144, 3146, and 3147.
6. Federal Funding Accountability
and Transparency Act. All Applicants,
in accordance with 2 CFR part 25, must
be registered in SAM and have a UEI
number as stated in Section D.3 of this
notice. All recipients of Federal
financial assistance are required to
report information about first-tier subawards and executive total
compensation in accordance with 2 CFR
part 170.
7. Civil Rights Act. All grants made
under this notice are subject to Title VI
of the Civil Rights Act of 1964 as
required by the USDA in 7 CFR part 15,
subpart A (eCFR:: 7 CFR part 15 Subpart
A—Nondiscrimination in FederallyAssisted Programs of the Department of
Agriculture—Effectuation of Title VI of
the Civil Rights Act of 1964) and section
504 of the Rehabilitation Act of 1973,
Title VIII of the Civil Rights Act of 1968,
Title IX, Executive Order 13166
(Limited English Proficiency), Executive
Order 11246, and the Equal Credit
Opportunity Act of 1974.
8. Nondiscrimination Statement. In
accordance with Federal civil rights
laws and U.S. Department of
Agriculture (USDA) civil rights
regulations and policies, the USDA, its
Mission Areas, agencies, staff offices,
employees, and institutions
participating in or administering USDA
programs are prohibited from
discriminating based on race, color,
national origin, religion, sex, gender
identity (including gender expression),
sexual orientation, disability, age,
marital status, family/parental status,
income derived from a public assistance
program, political beliefs, or reprisal or
retaliation for prior civil rights activity,
in any program or activity conducted or
funded by USDA (not all bases apply to
all programs). Remedies and complaint
filing deadlines vary by program or
incident.
Program information may be made
available in languages other than
English. Persons with disabilities who
require alternative means of
communication to obtain program
information (e.g., Braille, large print,
audiotape, American Sign Language)
should contact the responsible Mission
Area, agency, or staff office; the USDA
TARGET Center at (202) 720–2600
(voice and TTY); or the 711 Relay
Service.
To file a program discrimination
complaint, a complainant should
complete a Form AD–3027, USDA
Program Discrimination Complaint
Form, which can be obtained online at
https://www.usda.gov/oascr/programdiscrimination-complaint-filing, from

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any USDA office, by calling (866) 632–
9992, or by writing a letter addressed to
USDA. The letter must contain the
complainant’s name, address, telephone
number, and a written description of the
alleged discriminatory action in
sufficient detail to inform the Assistant
Secretary for Civil Rights (ASCR) about
the nature and date of an alleged civil
rights violation.
The completed AD–3027 form or
letter must be submitted to USDA by:
(1) Mail: U.S. Department of
Agriculture, Office of the Assistant
Secretary for Civil Rights, 1400
Independence Avenue SW, Washington,
DC 20250–9410; or
(2) Fax: (833) 256–1665 or (202) 690–
7442; or
(3) Email: [email protected].
USDA is an equal opportunity
provider, employer, and lender.
Andrew Berke,
Administrator, Rural Utilities Service, USDA
Rural Development.
[FR Doc. 2023–10392 Filed 5–15–23; 8:45 am]
BILLING CODE 3410–15–P

DEPARTMENT OF AGRICULTURE
Rural Utilities Service
[Docket#: RUS–23–ELECTRIC–0003]

Notice of Funding Opportunity for the
Powering Affordable Clean Energy
(PACE) Program
Rural Utilities Service, USDA.
Notice.

AGENCY:
ACTION:

The Rural Utilities Service
(RUS or the Agency), a Rural
Development (RD) Agency of the United
States Department of Agriculture
(USDA), is soliciting Letters of Interest
(LOI) for loan Applications, announcing
the Application process for those loans,
and providing deadlines for
Applications from eligible entities
under the Powering Affordable Clean
Energy (PACE) Program. These loan
funds will be made to qualified PACE
Applicants to finance power generation
Projects for Renewable Energy Resource
(RER) systems or Energy Storage
Systems (ESS) that support RER
Projects. The PACE Program has
$1,000,000,000 available in
appropriated funds under the Inflation
Reduction Act of 2022 (IRA).
DATES: Letters of Interest (LOIs) can be
submitted beginning at 11:59 a.m.
Eastern Time (ET) on June 30, 2023,
until 11:59 a.m. ET September 29, 2023.
An applicant that is invited by RUS
to proceed with the loan Application
will have 60 days, or a time agreeable
SUMMARY:

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to the Agency, to complete and submit
a loan Application beginning from the
date the Invitation to Proceed is emailed
to the PACE Applicant. If the deadline
to submit the completed Application
falls on Saturday, Sunday, or a Federal
holiday, the Application is due the next
business day. RUS reserves the right, in
its sole discretion, to extend the
deadline upon the written request of the
applicant if the applicant demonstrates
to the satisfaction of the Administrator
that exceptional circumstances exist to
warrant the extension.
ADDRESSES:
Letters of Interest (LOI) Submissions.
All LOIs must be submitted to RUS
electronically through an on-line
application window. The Agency will
finalize the specific requirements of
submitting the LOI through the on-line
application window by notice in the
Federal Register and the RUS website at
https://www.rd.usda.gov/programsservices/electric-programs/poweringaffordable-clean-energy-pace-program
on or before June 30, 2023.
Application Submissions. LOI
submitters chosen to proceed with the
loan Application must submit a
completed loan Application package in
accordance with the instructions
provided in the RUS’ Invitation to
Proceed.
Other information. Additional
information and resources are available
at https://www.rd.usda.gov/programsservices/electric-programs/poweringaffordable-clean-energy-pace-program.
Information on IRA Funding for RD is
located at the following website: https://
www.rd.usda.gov/inflation-reductionact#fn.
FOR FURTHER INFORMATION CONTACT:
Christopher A. McLean, Assistant
Administrator, Electric Program, RUS,
RD, USDA, 1400 Independence Avenue
SW, STOP 1568, Washington, DC
20250–1560; Telephone: 202–690–4492;
Email: SM.RD.RUS.IRA.Questions@
usda.gov.
SUPPLEMENTARY INFORMATION:
Overview
Federal Awarding Agency Name:
Rural Utilities Service (RUS).
Funding Opportunity Title: Powering
Affordable Clean Energy (PACE)
Program.
Announcement Type: Notice of
Funding Opportunity (NOFO).
Assistance Listing: 10.757.
Dates: Letters of Interest (LOIs) can be
submitted beginning at 11:59 a.m.
Eastern Time (ET) on June 30, 2023
until 11:59 a.m. ET September 29, 2023.
An applicant that is invited by RUS
to proceed with the loan Application

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