New Empowering Rural America (New ERA) Program

 

RUS will utilize the New ERA funds to assist eligible entities to achieve the greatest reduction in greenhouse gas emissions while advancing the long-term resiliency, reliability, and affordability of rural electric systems.

Active 10.758 Rural Utilities Service, Department of Agriculture E - Direct Loans Not applicable. The New ERA Program is authorized under the Inflation Reduction Act of 2022 (Public Law No. 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., Title The Inflation Reduction Act of 2022, Public Law 117-169 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). Not applicable. Applicants must provide the following: a Letter of Interest (LOI); a cover letter; a board resolution; articles of incorporation or bylaws or other applicable governing or organizational documents; environmental and historical preservation requirements; a financial forecast; a power purchase agreement; power supply arrangement documentation; an engineering report; power contracting documentation; interconnection agreements; system impact studies; a transmission service agreement; other major agreements; meteorological data and studies; fuel and fuel transportation strategies; sources and uses of water documentation; technical and financial descriptions; real estate agreements; a community benefit plan; refinancing and modification documentation; non-RUS funds documentation; and a Tribal government resolution of consent. Preapplication coordination is required. An environmental impact statement is required for this listing. An environmental impact assessment is required for this listing. 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. Step 1) An eligible entity may submit an LOI as described in the NOFO; Step 2) If the applicant is invited to proceed, the applicant must submit a completed application with the documentation required by the NOFO. Applicants not selected for funding will be notified in writing and informed of any review and appeal rights. Successful applicants will receive a Commitment Letter from the Administrator specifying: 1) the total amount of the award approved by RUS; and 2) 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 the award documents, RUS will forward those documents to the applicant. RUS will disburse funds to the awardee in accordance with the terms of the executed award documents, the NOFO, and the applicable provisions of 7 CFR parts 1710 through 1730, 1767, 1773, 1787, and 1970. June 30, 2023 to July 31, 2023 An applicant that is invited by RUS to proceed will receive an Invitation to Proceed and will have ninety (90) days to complete and submit a New ERA application beginning from the date the Invitation to Proceed is emailed to the applicant. If the ninety (90)-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 ninety (90)-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. An applicant that is invited by RUS to proceed will receive an Invitation to Proceed and will have ninety (90) days to complete and submit a New ERA application beginning from the date the Invitation to Proceed is emailed to the applicant. If the ninety (90)-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 ninety (90)-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. From 60 to 90 days. Not applicable. Not applicable. 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. Each of the metrics in the criteria will be generated by the Achievable Reductions Tool or other methods acceptable to RUS. Pursuant to IRA Section 22004, the heaviest weight will be given to the reduction of GHG emissions (CO2e). Points will be awarded as described in the NOFO. Other factors to be considered include: reliability and resiliency; affordability; geographic diversity; resources of the New ERA Program; SUTA provisions; funds available from other federal programs; and feasibility. Applicants who have been invited to proceed with an application 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 or serving predominantly Distressed or Disadvantaged Communities, Energy Communities, or proposing to serve SUTA communities as defined in Section 306F of the RE Act. Applicants will then compete for awards within their category and based on the evaluation of metrics that reflect achieving the greatest reductions in greenhouse gas emissions, taking into account long-term resiliency, reliability, and affordability with regard to the project(s) being requested for funding. 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. Performance Reports: RUS will establish periodic reporting requirements. These will be enumerated in the award documents. 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: 1) 30 calendar days after receipt of the auditor's report; or 2) nine months after the end of the Awardee's audit period. 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. 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 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 executed or rescinded. Not applicable. Statutory formula is not applicable to this assistance listing.

Matching is mandatory. 25%. For project loans, RUS will finance up to 75 percent of the total capitalized cost of the project in a project award in the loan component of an 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.

MOE requirements are not applicable to this assistance listing. All funds must be disbursed on or before September 30, 2031. With exception of loan refinancing or loan modification, awards will be for a term not to exceed the lesser of: 1) the expected useful life of the project: 2) The term of the power purchasing agreement (if required for execution between the awardee and the off-taker); 3) the term of the lease for the land that the project will occupy (if such land is not owned by the awardee), (4) 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 5) 35 years. The term of any loan related to a loan refinancing or loan modification will be based on the remaining useful life of assets financed and overall Financial Feasibility and shall not exceed 35 years. All funds must be disbursed on or before September 30, 2031. With exception of loan refinancing or loan modification, awards will be for a term not to exceed the lesser of: 1) the expected useful life of the project: 2) The term of the power purchasing agreement (if required for execution between the awardee and the off-taker); 3) the term of the lease for the land that the project will occupy (if such land is not owned by the awardee), (4) 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 5) 35 years. The term of any loan related to a loan refinancing or loan modification will be based on the remaining useful life of assets financed and overall Financial Feasibility and shall not exceed 35 years. None/Not specified. Christopher McLean
1400 Independence Ave., Stop 1560

Washington, DC 20250 US
christopher.mclean@wdc.usda.gov
Phone: 2027209545 12-1230-0-1-271 (Direct Loans) FY 22 Estimate Not Available FY 23 est $9,700,000,000.00; FY 24 - The total appropriated funds in the amount of $9,700,000,000 is available through September 30, 2031. As provided in Section 22004 of IRA, no one applicant may receive an amount equal to more than 10 percent of the total $9,700,000,000 in funds appropriated under Section 22004, which equals $970,000,000. 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. The New ERA Program is authorized under the Inflation Reduction Act of 2022 (Public Law No. 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 regulations that apply to this Notice are 7 CFR parts 1710 through 1730, 1767, 1773, 1787, and 1970. Not applicable.