[Federal Register: April 8, 2003 (Volume 68, Number 67)]
[Notices]               
[Page 17009-17018]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08ap03-38]                         

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DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service

 
Notice of Funds Availability (NOFA) Inviting Applications for the 
Renewable Energy Systems and Energy Efficiency Improvements Grant 
Program

AGENCY: Rural Business-Cooperative Service, USDA.

ACTION: Notice.

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SUMMARY: The Rural Business-Cooperative Service (RBS) announces the 
availability of $23 million in competitive grant funds for fiscal year 
(FY) 2003 to purchase renewable energy systems and make energy 
improvements for agricultural producers and rural small businesses. In 
order to be eligible for grant funds, the agricultural producer or 
rural small business must demonstrate financial need. The grant request 
must not exceed 25 percent of the eligible project costs.

DATES: Applications must be completed and submitted to the appropriate 
United States Department of Agriculture (USDA) State Rural Development 
Office postmarked no later than June 6, 2003. Applications postmarked 
after June 6, 2003, will be returned to the applicant with no action. 
Comments regarding the information collection requirements under the 
Paperwork Reduction Act of 1995 must be received on or before June 9, 
2003.

ADDRESSES: Submit proposals to the USDA State Rural Development Office 
where your project is located or, in the case of a rural small 
business, where you are headquartered. A list of the Energy 
Coordinators and State Rural Development Office addresses and telephone 
numbers follow. For further information about this solicitation, please 
contact the applicable State Office.

USDA State Rural Development Offices

Alabama

Chris Harmon, USDA Rural Development
Sterling Center, Suite 601
4121 Carmichael Road
Montgomery, AL 36106-3683
(334) 279-3615

Alaska

Dean Stewart, USDA Rural Development
800 West Evergreen, Suite 201
Palmer, AK 99645-6539
(907) 761-7722

Arizona

Gary Mack, USDA Rural Development
3003 North Central Avenue, Suite 900
Phoenix, AZ 85012-2906
(602) 280-8717

Arkansas

Shirley Tucker, USDA Rural Development
700 West Capitol Avenue, Room 3416
Little Rock, AR 72201-3225
(501) 301-3280

California

Charles Clendenin, USDA Rural Development
430 G Street, Agency 4169
Davis, CA 95616-4169
(530) 792-5825

Colorado

Sue McWilliams, USDA Rural Development
628 West 5th Street
Cortez, CO 81321
(970) 565-8416, Ext. 127

Delaware-Maryland

James Waters, USDA Rural Development
4607 South Dupont Hwy.
P.O. Box 400
Camden, DE 19934-0400
(302) 697-4324

Florida/Virgin Islands

Joe Mueller, USDA Rural Development
4440 NW. 25th Place
P.O. Box 147010
Gainesville, FL 32614-7010
(352) 338-3482

Georgia

J. Craig Scroggs, USDA Rural Development
333 Phillips Drive
McDonough, GA 30253
(678) 583-0866

Hawaii

Tim O'Connell, USDA Rural Development
Federal Building, Room 311
154 Waianuenue Avenue
Hilo, HI 96720
(808) 933-8313

Idaho

Dale Lish, USDA Rural Development
725 Jensen Grove Drive, Suite 1
Blackfoot, ID 83221
(208) 785-5840, Ext. 118

Illinois

Cathy McNeal, USDA Rural Development
2118 West Park Court, Suite A
Champaign, IL 61821
(217) 403-6209

Indiana

Jerry Hay, USDA Rural Development
North Vernon Area Office
2600 Highway 7 North
North Vernon, IN 47265
(812) 346-3411, Ext. 4

Iowa

Jeff Kuntz, USDA Rural Development
Federal Building, Room 873
210 Walnut Street
Des Moines, IA 50309
(614) 932-3031

Kansas

Larry Carnahan, USDA Rural Development
P.O. Box 437
115 West 4th Street
Altamont, KS 67330
(620) 784-5431

Kentucky

Dewayne Easter, USDA Rural Development
771 Corporate Drive, Suite 200
Lexington, KY 40503
(859) 224-7435

Louisiana

Kevin Boone, USDA Rural Development
3727 Government Street
Alexandria, LA 71302
(318) 473-7960

Maine

Michael Rollins, USDA Rural Development
967 Illinois Avenue, Suite 4
P.O. Box 405
Bangor, ME 04402-0405

[[Page 17010]]

(207) 990-9125

Massachusetts/Rhode Island/Connecticut

Sharon Colburn, USDA Rural Development
Rural Energy Coordinator
451 West Street, Suite 2
Amherst, MA 01002-2999
(413) 253-4303

Michigan

Jason Church, USDA Rural Development
3001 Coolidge Road, Suite 200
East Lansing, MI 48823
(517) 324-5217

Minnesota

David Gaffaney, USDA Rural Development
410 AgriBank Building
375 Jackson Street
St. Paul, MN 55101-1853
(651) 602-7814

Mississippi

Charlie Joiner, USDA Rural Development
Federal Building, Suite 831
100 West Capitol Street
Jackson, MS 39269
(601) 965-5457

Missouri

D. Clark Thomas, USDA Rural Development
601 Business Loop 70 West
Parkade Center, Suite 235
Columbia, MO 65203
(573) 876-0984

Montana

John Guthmiller, USDA Rural Development
900 Technology Blvd., Unit 1, Suite B
P.O. Box 850
Bozeman, MT 59771
(406) 585-2549

Nebraska

Cliff Kumm, USDA Rural Development
201 North, 25 Street
Beatrice, NE 68310
(402) 223-3125

Nevada

Dan Johnson, USDA Rural Development
555 West Silver Street, Suite 101
Elko, NV 89801
(775) 738-8468, Ext. 112

New Jersey

Michael Kelsey, USDA Rural Development
5th Floor North, Suite 500
8000 Midlantic Drive
Mt. Laurel, NJ 08054
(856) 787-7700, Ext. 7751

New Mexico

Eric Vigil, USDA Rural Development
6200 Jefferson Street, NE.
Room 255
Albuquerque, NM 87109
(505) 761-4952

New York

Robert Pestridge, USDA Rural Development
The Galleries of Syracuse
441 South Salina Street, Suite 357
Syracuse, NY 13202-2541
(315) 477-6426

North Carolina

H. Rossie Bullock, USDA Rural Development
Bladen County Agriculture Service Center
450 Smith Circle, Room 137
Elizabethtown, NC 28337
(910) 862-3179

North Dakota

Dale Van Eckout, USDA Rural Development
Federal Building, Room 208
220 East Rosser Avenue
P.O. Box 1737
Bismarck, ND 58502-1737
(701) 530-2065

Ohio

James Cogan, USDA Rural Development
Federal Building, Room 507
200 North High Street
Columbus, OH 43215-2418
(614) 255-2420

Oklahoma

Jody Harris, USDA Rural Development
100 USDA, Suite 108
Stillwater, OK 74074-2654
(405) 742-1036

Oregon

Don Hollis, USDA Rural Development
1229 SE Third Street, Suite A
Pendleton, OR 97801-4198
(541) 278-8049, Ext. 129

Pennsylvania

Lee Patterson, USDA Rural Development
One Credit Union Place, Suite 330
Harrisburg, PA 17110-2996
(717) 237-2189

Puerto Rico

Virgilio Velez, USDA Rural Development
IBM Building
654 Munoz Rivera Avenue, Suite 601
Hato Rey, PR 00918-6106
(787) 766-5091

South Carolina

Mike Hucks, USDA Rural Development
Strom Thurmond Federal Building
1835 Assembly Street, Room 1007
Columbia, SC 29201
(803) 253-3645

South Dakota

Gary Korzan, USDA Rural Development
Federal Building, Room 210
200 4th Street, SW.
Huron, SD 57350
(605) 352-1142

Tennessee

Dan Beasley, USDA Rural Development
3322 West End Avenue, Suite 300
Nashville, TN 37203-1084
(615) 783-1341

Texas

Pat Liles, USDA Rural Development
Federal Building, Suite 102
101 South Main Street
Temple, TX 76501
(254) 742-9780

Utah

Richard Carrig, USDA Rural Development
Wallace F. Bennett Federal Building
125 South State Street, Room 4311
Salt Lake City, UT 84147-0350
(801) 524-4328

Vermont/New Hampshire

Lyn Millhiser, USDA Rural Development
City Center, 3rd Floor
89 Main Street
Montpelier, VT 05602
(802) 828-6069
Contact person for New Hampshire:
Scott Johnson, (603) 223-6042

Virginia

Laurette Tucker, USDA Rural Development
Culpeper Building, Suite 238
1606 Santa Rosa Road
Richmond, VA 23229
(804) 287-1594

Washington

Chris Cassidy, USDA Rural Development
1606 Perry Street, Suite E
Yakima, WA 98902-5769
(509) 454-5743, Ext. 5

West Virginia

Cheryl Wolfe, USDA Rural Development
75 High Street, Room 320
Morgantown, WV 26505-7500
(304) 284-4882

Wisconsin

Brian Deaner, USDA Rural Development
4949 Kirschling Court
Stevens Point, WI 54481
(715) 345-7615, Ext. 132

Wyoming

Jerry Tamlin, USDA Rural Development
100 East B, Federal Building, Room 1005
P.O. Box 820
Casper, WY 82602
(307) 261-6319

SUPPLEMENTARY INFORMATION:

Background

    This solicitation is issued pursuant to enactment of the Farm 
Security and Rural Investment Act of 2002 (2002 Act), which established 
the Renewable Energy Systems and Energy Efficiency Improvements Program 
under Title IX, Section 9006. The 2002 Act requires the Secretary of 
Agriculture to create a program to make direct loans, loan guarantees, 
and grants to agricultural producers and rural small businesses to 
purchase renewable energy systems and make energy efficiency 
improvements. The program is designed to help agricultural producers 
and rural small businesses reduce energy costs and consumption and help 
meet the nation's critical energy needs. The 2002 Act also mandates the 
maximum percentage RBS will provide in funding for these types of 
projects. The RBS grant will not exceed 25 percent of the eligible 
project costs and will be made only to those who demonstrate financial 
need. Due to the time constraints for implementing this program, RBS 
has decided to institute only the grant program for FY 2003.

[[Page 17011]]

Definitions applicable to this NOFA

    Agricultural Producer--An individual or entity directly engaged in 
the production of agricultural products, including crops (including 
farming); livestock (including ranching); forestry products; 
hydroponics; nursery stock; or aquaculture, whereby 50 percent or 
greater of their gross income is derived from the operations.
    Annual receipts--Total income or gross income (sole proprietorship) 
plus cost of goods sold.
    Biogas--Biomass converted to gaseous fuels.
    Biomass--Any organic material that is available on a renewable or 
recurring basis including agricultural crops; trees grown for energy 
production; wood waste and wood residues; plants, including aquatic 
plants and grasses; fibers; animal waste and other waste materials; and 
fats, oils, and greases, including recycled fats, oils, and greases. It 
does not include paper that is commonly recycled or unsegregated solid 
waste.
    Capacity--The load that a power generation unit or other electrical 
apparatus or heating unit is rated by the manufacturer to be able to 
meet or supply.
    Capacity Factor--The ratio of the average load on (or power output 
of) a generating unit or system to the capacity rating of the unit or 
system over a specified period of time.
    Commercially Available--Systems that have a proven operating 
history and an established design, installation, equipment, and service 
industry.
    Demonstrated Financial Need--The applicant must demonstrate that it 
is unable to finance the project from its own resources or other 
funding sources without grant assistance.
    Eligible Project Cost--Total project costs that are eligible to be 
paid with grant funds.
    Energy Audit--A written report by an independent, qualified entity 
or individual that documents current energy usage, recommended 
improvements and their costs, energy savings from these improvements, 
dollars saved per year, and the weighted-average payback period in 
years.
    Energy Efficiency Improvement--Improvements to a facility or 
process that reduce energy consumption.
    Financial Feasibility--The ability of the business to achieve the 
projected income and cash flow. An assessment of the cost-accounting 
system, the availability of short-term credit for seasonal business, 
and the adequacy of raw materials and supplies.
    Grant Close Out--When all required work is completed, 
administrative actions relating to the completion of work and 
expenditures of funds have been accomplished, and RBS accepts final 
expenditure information.
    In-kind Contributions--Applicant or third-party real or personal 
property or services benefiting the Federally assisted project or 
program that are contributed by the applicant or a third party.
    Interconnection Agreement--The terms and conditions governing the 
interconnection and parallel operation of the applicant's electric 
generation equipment and the utility's electric power system. Other 
services required by the applicant from the utility are covered under 
separate arrangements.
    Leveraged Funds--The funds needed to pay for the portion of the 
eligible project costs of the project not paid for by a grant awarded 
under this program.
    Other Waste Materials--Inorganic or organic materials that are used 
as inputs for energy production or are by-products of the energy 
production process.
    Power Purchase Arrangement--The terms and conditions governing the 
sale and transportation of electricity produced by the applicant to 
another party. Other services are covered under separate arrangements.
    Pre-commercial Technology--Technologies that have emerged through 
the research and development process and have technical and economic 
potential for application in commercial energy markets but are not yet 
commercially available.
    Renewable Energy--Energy derived from a wind, solar, biomass, or 
geothermal source or hydrogen derived from biomass or water using wind, 
solar, or geothermal energy sources.
    Renewable Energy System--A process that produces energy from a 
renewable energy source.
    Rural--Any area other than a city or town that has a population of 
greater than 50,000 inhabitants and the urbanized area contiguous and 
adjacent to such a city or town.
    Small Business--A private entity including a sole proprietorship, 
partnership, corporation, and a cooperative (including a cooperative 
qualified under section 501(c)(12) of the Internal Revenue Code) but 
excluding any private entity formed solely for a charitable purpose, 
and which private entity is considered a small business concern in 
accordance with the Small Business Administration's Small Business Size 
Standards by North American Industry Classification System (NAICS) 
Industry found in 13 CFR 121; provided the entity has 500 or fewer 
employees and $20 million or less in total annual receipts including 
all parent, affiliate, or subsidiary entities at other locations.
    Total Project Cost--The sum of all costs associated with a 
completed, operational project.

Grant Amounts

    The amount of funds available for this program in FY 2003 is $23 
million. RBS grant funds may be used to pay up to 25 percent of the 
eligible project costs. Half of the funds will be available for 
renewable energy systems and the other half for energy efficiency 
improvement projects. USDA may reallocate funds between the renewable 
energy systems and the energy efficiency improvement funds. 
Applications for renewable energy systems must be for a minimum grant 
request of $10,000, but no more than $500,000. Applications for energy 
efficiency improvements must be for a minimum grant request of $10,000, 
but no more than $250,000. The actual number of grants funded will 
depend on the quality of proposals received and the amount of funding 
requested. These limits are consistent with energy efficiency 
improvement projects and alternative energy systems, which the 
Department has determined are appropriate for agricultural producers 
and rural small businesses. Grant limitations were based on historical 
data supplied from Department of Energy, Environmental Protection 
Agency and Rural Utilities Service on renewable energy systems and from 
an energy efficiency state program for energy efficiency improvements.

Applicant Eligibility

    An eligible applicant must be an agricultural producer or rural 
small business. Individual applicants must be citizens of the United 
States (U.S.) or reside in the U.S. after being legally admitted for 
permanent residence. Entities must be at least 51 percent owned, 
directly or indirectly, by individuals who are either citizens of the 
U.S. or reside in the U.S. after being legally admitted for permanent 
residence. The applicant must also have demonstrated financial need. In 
the case of an applicant that is applying as a rural small business, 
the business headquarters must be in a rural area and the project to be 
funded also must be in a rural area. Adverse actions made on 
applications are appealable pursuant to 7 CFR part 11.

Project Eligibility

    The proposed project must be for the purchase of a renewable energy 
system or to make energy efficiency

[[Page 17012]]

improvements and located in a rural area. The applicant must be the 
owner of the system and control the operation of the proposed project. 
A third-party operator may be used to manage the operation or proposed 
project. Grant funds are not for research and development; therefore, 
they will only be used for commercial or pre-commercial technology.
    All projects financed under this NOFA must be based on satisfactory 
sources of revenues in an amount sufficient to provide for the 
operation and maintenance of the system or project.
    A proposed renewable energy system can use up to 25 percent of 
total energy input from a nonrenewable energy source for necessary and 
incidental requirements of the energy system. No other use of non-
renewable energy inputs will be allowed for projects funded under this 
program.
    Eligible projects for energy efficient improvements must conserve 
energy equal to 15 percent of at least the last 12 months usage and pay 
for itself within 11 years or less through energy cost savings.
    RBS is required to assess the potential environmental impacts of a 
proposed action prior to commitment of Federal financial resources to 
the project. This environmental review is consistent with the Council 
on Environmental Quality's (CEQ) regulations for implementing the 
procedural provisions of the National Environmental Policy Act. Any 
required environmental review must be completed prior to RBS obligating 
any grant funds. The taking of any actions or incurring any obligations 
during the time of application or application review and processing 
which would either limit the range of alternatives to be considered or 
which would have an adverse effect on the environment, such as the 
initiation of construction, will result in project ineligibility.
    Environmental review will be accomplished pursuant to RBS 
environmental regulations found at 7 CFR part 1940, subpart G or 
successor regulations. A site visit will be scheduled, if necessary, to 
determine the scope of the review. The applicant will be notified 
regarding the level of review required. If an environmental review 
cannot be completed in sufficient time for grant funds to be obligated 
by September 30, 2003, grant funds will not be awarded.

Eligible and Ineligible Uses for RBS Grant Funds

    RBS grant funds may be used for the following as a part of an 
eligible project:
    1. Purchase and installation of equipment;
    2. Construction or improvements;
    3. Energy audits;
    4. Permit fees;
    5. Professional service fees;
    6. Feasibility studies;
    7. Business plans, and
    8. Retrofitting.
    Ineligible uses for RBS Grant Funds:
    1. Land acquisition;
    2. Capital leases;
    3. Working capital;
    4. Residential improvements;
    5. Agricultural tillage equipment;
    6. Vehicles;
    7. Preparation of the grant application;
    8. Waste collection;
    9. Funding of political or lobbying activities;
    10. Operating, maintaining, routine repairs, or fuel costs for 
biogas or biomass renewable energy projects;
    11. Production, collection, and transportation of energy inputs;
    12. Construction of a new facility except when the new facility is 
used for the same purpose, is approximately the same size, and, based 
on the energy audit, will provide more energy savings than improving an 
existing facility. Only the items identified in the energy audit of the 
existing facility will be eligible for funding. (pertains to energy 
efficiency projects only); and
    13. Costs paid prior to an application being received by RBS except 
for predevelopment costs such as energy audits, feasibility studies, 
business plans, permit fees, or architectural and engineering fees.

Leveraged Funds

    RBS grant funds may be used to pay up to 25 percent of the eligible 
project costs. Therefore, the applicant must provide at least 75 
percent of leveraged funds to complete the project. Leveraged funds 
will be verified from information provided in the application. In-kind 
contributions and other Federal grants may not be used to meet the 75 
percent requirement.

Application

    Separate applications must be submitted for renewable energy system 
and energy efficiency improvement projects. Applicants can only submit 
one application for renewable energy systems and one application for 
energy efficiency improvements. The maximum amount of grant assistance 
to one individual or entity will not exceed $750,000. The following 
will constitute a complete application, which must be submitted by June 
6, 2003.
    1. Form SF-424, ``Application for Federal Assistance.''
    2. Form SF-424C, ``Budget Information--Construction Pograms.'' Each 
cost classification category listed on the form must be filled out if 
it applies to your project. Any cost category item not listed on the 
form that applies to your project can be put under the miscellaneous 
category. Attach a separate sheet if you are using the miscellaneous 
category and list each miscellaneous cost by not allowable and 
allowable costs in the same format as on the SF-424C form. All project 
costs must be categorized as either eligible or ineligible.
    3. Form SF-424D, ``Assurances--Construction Programs.''
    4. AD-1047, ``Certification Regarding Debarment, Suspension, and 
Other Responsibility Matters--Primary Covered Transactions.''
    5. AD-1049, ``Certification Regarding a Drug-Free Workplace 
Requirements.''
    6. Form RD 400-1, ``Equal Opportunity Agreement.''
    7. Form RD 400-4, ``Assurance Agreement.''
    8. ``Certification for Contracts, Grants and Loans,'' required by 
Section 319 of Public Law 101-121 if the grant is $100,000 or more.
    9. If the applicant has made or agreed to make payment using funds 
other than Federal appropriated funds to influence or attempt to 
influence a decision in connection with the application, Form SF-LLL, 
``Disclosure of Lobbying Activities,'' must be completed.
    10. A project-specific feasibility study prepared by a qualified 
independent consultant will be required for all renewable energy system 
projects. An acceptable feasibility study must include an analysis of 
the market, financial, and management feasibility of the proposed 
project. The feasibility study must include an opinion and a 
recommendation by the independent consultant. Energy efficiency 
improvement projects do not require a feasibility study to be 
completed.
    11. If the project involves interconnection to an electric utility, 
a copy of a letter of intent to purchase power, a power purchase 
agreement, or an interconnection agreement will be required from your 
utility company or other purchaser for renewable energy systems.
    12. Table of Contents. For ease of locating information, each 
proposal must contain a detailed Table of Contents immediately 
following the required SF-424 forms. The Table of Contents should 
include page numbers for each component of the proposal. Pagination 
should begin immediately following the Table of Contents.

[[Page 17013]]

    13. Project Summary. A summary of the project proposal, not to 
exceed one page, must include the following: Title of the project, 
description of the project including goals and tasks to be 
accomplished, names of the individuals responsible for conducting and 
completing the tasks, and the expected timeframes for completing all 
tasks, including an operational date. The applicant must also clearly 
state whether the application is for the purchase of a renewable energy 
system or to make energy efficiency improvements.
    14. Eligibility. Describe how you meet the definition of an 
eligible applicant.
    15. Applicant Information. All applicants must provide the 
following:
    A. Business/farm/ranch operation.
    (1) Describe ownership, including a list of individuals and/or 
entities with ownership interest. Provide names of any corporate 
parents, affiliates, and subsidiaries, as well as a description of the 
relationship, including products, between these entities.
    (2) Describe the operation.
    B. Management. Provide the resume of key managers focusing on 
relevant business experience.
    C. Financial Information.
    (1) Explanation of the demonstrated financial need for the grant.
    (2) Current balance sheet and income statement prepared in 
accordance with generally accepted accounting principles (GAAP) and 
dated within 90 days of the application for rural small businesses. 
Agricultural producers should present financial information in the 
format that is generally required by commercial agriculture lenders. 
These items are required on the total operations of the applicant and 
its parent, subsidiary, or affiliates at other locations.
    (3) Small business applicants must provide sufficient information 
to determine total annual receipts of the business and any parent, 
subsidiary, or affiliates at other locations. Voluntarily providing tax 
returns is one means of satisfying this requirement. Information 
provided must be sufficient to make a determination of total income and 
cost of goods sold by the business.
    (4) If available, financial statements prepared in accordance with 
GAAP for the past 3 years, including income statements and balance 
sheets. Agricultural producers should present financial information for 
the past 3 years in the format that is generally required by commercial 
agriculture lenders.
    (5) Financial projections to include pro forma financial statements 
for 3 years, with an explanation of assumptions used to generate the 
financial statements. The financial statements must include cash flow 
statements, income statements, and balance sheets. Income statements 
and cash flow statements must be monthly for the first year and annual 
for the next 2 years. The balance sheet should be annual for all 3 
years. Energy efficiency improvement applicants must provide cash flow 
statements, income statements, and balance sheets that are annual for 
all 3 years. This applies to all operations of the applicant, existing 
and new. Financial projections are not required on any parent, 
subsidiary, or affiliate of the applicant.
    D. Production information for renewable energy system projects.
    (1) Is the technology to be employed by the facility commercially 
or pre-commercially available? Provide information to support this 
position.
    (2) Describe the availability of materials, labor, and equipment 
for the facility.
    E. Business market information for renewable energy system 
projects.
    (1) Demand. What is the demand (past, present, and future) for the 
product and/or service? Who will buy the product and/or service?
    (2) Supply. What is the supply (past, present, and future) of the 
product and/or service? Who are the competitors?
    (3) Market niche. Given the trends in demand and supply, how will 
the business be able to sell enough of its product/service to be 
profitable?
    16. Form RD 1940-20, ``Request for Environmental Information.'' It 
is strongly recommended that the applicant contact the appropriate 
Rural Energy Coordinator for assistance in completing this form.
    17. Verification of Leveraged Funds. Applicant must provide a copy 
of a bank statement or a copy of the confirmed funding commitment from 
the funding source. Leveraged funds must be included on the SF-424 and 
SF-424C forms.
    18. Technical Requirements/Engineer or Architect Report. Separate 
technical requirements exist for grants for renewable energy systems 
and energy efficiency improvement projects. The applicant must address 
the appropriate technical requirements. Two copies of the technical 
requirements must be submitted in order for the State Rural Development 
Office to submit a copy to the RBS National Office for a technical 
review.
    A. Renewable Energy System Technical Requirements. The application 
must demonstrate that the system operates over its design life as 
expected, the owner/operator is capable of managing the system, and the 
vendor will provide the needed support. The following are technical 
requirements for renewable energy systems and will be addressed 
independently, in narrative form, and in the following order:
    (1) Detailed Description of System. Provide a step-by-step 
description, based on authoritative information, of the complete system 
from renewable and nonrenewable energy input and inclusive of energy, 
byproduct, and effluent outputs. Describe the type of renewable energy 
source, its availability (include storage and handling of the source), 
and modes of delivery. Power and energy required to operate the system 
must also be described to determine net power and energy produced. 
Information on the system, if appropriate, must address utility system 
interconnection requirements, power purchase arrangements, and output 
energy storage systems. Detailed information on the actual outputs 
shall be addressed under system performance as outlined in the 
following section.
    (2) System Performance. Describe the expected power and energy 
production of the proposed system as rated and as expected in actual 
field conditions. System performance must be addressed on a daily, 
monthly, annual, and long-term basis. Other products of the system 
operation shall be identified with quantity and composition produced. 
Effluents such as air and water, solids, and other residues shall be 
identified. Non-energy products with potential commercial value, such 
as fertilizers, soil amendments and hydrogen shall be identified.
    (3) System Design Life. Provide historical or engineering 
information that supports expected design life of the system and timing 
of major component replacement or rebuilds.
    (4) Use of power and energy supplied by system. Describe the uses 
of the electricity, heat, torque, and energy stored by the renewable 
energy system. Discuss how renewable energy system downtime will impact 
any of the uses of the renewable energy supplied by the system and how 
and if such energy must or can be supplied by other means.
    (5) Project Costs and Timeline. Identify and itemize major project 
costs and a timeline and milestones for key activities, including 
project design, siting and permitting, system purchase, site 
preparation, system installation, operational testing, and 
decommissioning if applicable.
    (6) Design qualifications. Discuss needed system designer 
qualifications and/or certifications in accordance with commonly 
acceptable or recognized organizations or bodies. If applicable,

[[Page 17014]]

verify that site designers are qualified and/or certified. Provide 
evidence that the system and installation plans conform to all 
applicable national, State, and local standards. Provide a list of the 
same or similar systems designed, installed, or supplied currently 
operating and with references if available. Discuss spare parts and 
service availability for life of the system. Describe the knowledge, 
skills, and abilities needed to install, service, operate, and maintain 
the system.
    (7) Professional services required. Describe professional services 
and qualifications, expected professional service costs required to 
design, construct, operate, and maintain the system. This may include a 
professional engineer, an agricultural engineer, a design engineer, an 
environmental engineer, a lawyer, accounting, project construction, 
project management, or any other needed professional services.
    (8) Equipment installation. Fully describe the management and plan 
for site development and system installation. All systems must be 
installed and interconnected in conformance with the system 
manufacturer specifications, utility system requirements, and any 
applicable national, State, or local codes and standards. A general 
contractor or a turnkey system provider must install the proposed 
system.
    (9) Startup, shakedown, and steady state operation. Provide the 
appropriate start up testing procedures and test criteria. Describe 
testing and inspection procedures necessary before system startup and 
monitoring of initial operation. Estimate needed time to complete 
startup testing and shakedown period for system to obtain design-
operating parameters at a steady state operating level. Verifiable and 
empirical information must be provided at startup, end of shakedown, 
and end of steady state operation test period.
    (10) Operations and Maintenance. Describe the routine operations 
and maintenance requirements of the proposed system, including 
feedstock acquisition, transportation and handling, maintenance for the 
mechanical and electrical system, system monitoring and control 
requirements, output delivery systems, and on-going environmental 
compliance. Include in the discussion, costs and labor associated with 
operations and maintenance of system and plans for in or outsourcing.
    (11) Potential vendor qualifications. For each vendor, provide the 
type of services provided, number of years they have provided the 
proposed services, technical support programs, and availability of 
spare parts.
    (12) Performance assurance. Describe vendor standard warranty and 
performance bonds where available. The owner operator shall commit to 
keep the system in operating order for the design life of the system 
identified above. Obtain a commitment from the vendor to supply and 
service for the design life of the system provided. Describe available 
training and operation assistance available from the vendor and other 
sources. Construction contracts in excess of $100,000 will require a 
performance and payment bond for 100 percent of the contract price.
    (13) A qualified professional engineer must certify numbers 1-10 of 
the technical requirements for renewable energy system projects 
exceeding $100,000 in total project cost. Vendors may prepare numbers 
11 and 12 of the technical requirements. Qualifications of any preparer 
or certifier must be submitted with the application.
    B. Energy Efficiency Improvement Technical Requirements. The 
application must demonstrate that the energy efficiency improvements 
perform over the design life as expected. Information should be 
supported by the energy audit, required elsewhere in this NOFA, 
whenever applicable. The following are technical requirements for 
energy efficiency improvement projects and will be addressed 
independently, in narrative form, and in the following order:
    (1) Detailed Description of Energy Efficiency Improvement Project. 
Describe the components, materials or systems to be installed and how 
they improve the energy efficiency of the process or facility being 
modified. Discuss passive improvements such as improving the thermal 
efficiency of a storage facility and active improvements such as 
replacing high efficiency energy consuming equipment as separate 
topics. If synergisms are anticipated between active and passive 
improvements or other energy systems discuss these as an additional 
topic. Any change in on-site effluents or other byproducts shall be 
included in the discussion.
    (2) Performance. Describe the expected energy savings of the energy 
efficiency improvement project. The expected energy savings must be 
supported by an authoritative energy audit as described elsewhere in 
this NOFA. Energy savings must be addressed on an annual basis. 
Performance may also be addressed on a seasonal basis or other periodic 
basis as determined and stated by the energy auditor. Discuss 
performance in a similar topical manner as required in paragraph 1 
above.
    (3) Design Life. Provide information that supports expected design 
life of passive and active improvements. Describe the scope and timing 
of major component replacement or rebuilds.
    (4) Project Costs and Timeline. Identify and itemize major energy 
efficiency improvement project costs and a timeline and milestones for 
key activities, including project design, permitting, materials and 
equipment purchase, site preparation, and installation.
    (5) Design qualifications. Discuss needed designer qualifications 
and/or certifications with commonly accepted or recognized 
organizations or bodies. If applicable, verify that designers are 
qualified and/or certified. Provide evidence that the energy efficiency 
improvement project and installation plans conform to all applicable 
national, State, and local standards. Describe the knowledge, skills, 
and abilities needed to install, service, operate, and maintain the 
installed materials, equipment and systems.
    (6) Professional services required. Describe professional services 
and qualifications, expected professional service costs required to 
design, construct, operate, and maintain the energy efficiency 
improvement project. This may include a professional engineer, an 
agricultural engineer, a design engineer, an environmental engineer, a 
lawyer, accounting, project construction, project management, or any 
other needed services.
    (7) Equipment, system and material installation. Fully describe the 
plan for site development, and equipment, system and materials 
installation. All equipment, systems and materials must be installed in 
conformance with applicable national, State or local codes, and 
standards. A general contractor or a turnkey provider must install the 
proposed energy efficiency improvement project.
    (8) Operations and maintenance. Describe the routine operations and 
maintenance of the proposed energy efficiency improvement project. 
Include in the discussion, costs and labor associated with the 
operations and maintenance of the energy efficiency improvement project 
and plans for in and outsourcing.
    (9) Potential vendor qualifications. For each vendor, discuss the 
type of service provided, number of years they have provided the 
proposed services, availability of spare parts and post sale customer 
support.
    (10) Performance assurance. Describe vendor standard warranty and

[[Page 17015]]

performance bonds where available. Vendors must offer competitive 
warranties on products and services. The applicant shall commit to keep 
the energy efficiency improvement project in good repair and operating 
order for the design life for the energy efficiency improvement 
project. Describe how information will be collected and reported to 
meet the reporting requirements of the Renewable Energy/Energy 
Efficiency Grant Agreement.
    (11) A qualified professional engineer or architect must certify to 
numbers 1-8 of the technical requirements for an energy efficiency 
improvement project exceeding $100,000 in total project cost. Vendors 
may prepare numbers 9 and 10 of the technical requirements. 
Qualifications of any preparer or certifier must be submitted with the 
application.
    19. Energy Audit for Efficiency Improvements Projects:
    Each application for an energy efficiency grant must include an 
energy audit. An energy audit is a written report by an independent, 
qualified entity that documents current energy usage, recommended 
potential improvements and their costs, energy savings from these 
improvements, dollars saved per year, and weighted-average payback 
period in years (total costs divided by total dollars of energy 
savings).
    The methodology of the energy audit should meet professional and 
industry standards. RBS review and evaluation of the assessment is for 
grant purposes only and should not be considered a validation or 
guarantee of any technology, proposed project, cost estimate, energy 
savings value, or future energy costs.
    The energy audit should cover the following:
    A. Situation report. Give a narrative description of the facility 
or process, its energy system(s) and usage, and activity profile. Also 
include price per unit of energy (electricity, natural gas, propane, 
fuel oil, renewable energy, etc.) paid by the customer on the date of 
the audit. Any energy conversion should be based on use rather than 
source.
    B. Potential improvements. List specific information on all 
potential energy-saving opportunities and their costs.
    C. Technical analysis. Give consideration to the interactions among 
the potential improvements and other energy systems:
    (1) Estimate the annual energy and energy costs savings expected 
from each improvement identified in the potential project.
    (2) Calculate all direct and attendant indirect costs of each 
improvement.
    (3) Rank potential improvements measures by cost-effectiveness 
(item 2 divided by item 1 above).
    D. Potential improvement description. Give a narrative summary of 
the potential improvement and its ability to provide needed benefits, 
including a discussion of project reliability and durability.
    (1) Provide primary specifications for critical components.
    (2) Provide preliminary drawings of project layout, including any 
related structural changes.
    (3) Document baseline data compared to projected consumption, 
together with any explanatory notes. When appropriate, show before-and-
after data in terms of consumption per unit of production, time or 
area. Include at least 1 year's bills for those energy sources/fuel 
types affected by this project. Also submit utility rate schedules, if 
appropriate.
    (4) Identify significant changes in future related operations and 
maintenance costs.
    (5) Identify zoning and building code issues and required permits 
and licenses.
    (6) Describe explicitly how outcomes will be measured.
    20. Evaluation Criteria. Evaluation of the proposals will be based 
on the following criteria. These criteria should be individually 
addressed in narrative form on a separate sheet of paper. Failure to 
address any one of the criteria may disqualify the application.
    A. Criteria for applications for renewable energy systems are:
    (1) Quantity of Energy Produced. Points may only be awarded for 
either energy replacement or energy generation.
    a. Energy replacement. If the proposed renewable energy system is 
intended primarily for self use by the farm, ranch, or small business 
and will provide energy replacement of greater than 75 percent, 20 
points will be awarded; greater than 50 percent, but less than 75 
percent, 15 points will be awarded; or greater than 25 percent, but 
less than 50 percent, 10 points will be awarded. The energy replacement 
should be determined by dividing the estimated quantity of energy to be 
generated by at least the past 12 months energy profile of the 
applicant. The estimated quantity of energy may be described in Btu's, 
kilowatts, or similar energy equivalents. Energy profiles can be 
obtained from the utility company.
    b. Energy generation. If the proposed renewable energy system is 
intended primarily for production of energy for sale, 20 points will be 
awarded.
    (2) Environmental Benefits. If the proposed renewable energy system 
is to upgrade an existing facility or construct a new facility required 
to meet applicable health or sanitary standards, 10 points will be 
awarded. Documentation will be obtained from the appropriate regulatory 
agency with jurisdiction to establish the standard, to verify that a 
bona fide standard exists, what that standard is, and that the proposed 
project is needed and required to meet the standard.
    (3) Commercial Availability. If the renewable energy system is 
currently commercially available and replicable, an additional 10 
points will be awarded. Commercial availability must be discussed in 
the technical requirements.
    (4) Cost Effectiveness. If the proposed renewable energy system 
will return the cost of the investment in 5 years or less, 25 points 
will be awarded; 6-10 years, 20 points will be awarded; 11-15 years, 15 
points will be awarded; or 16-20 years, 10 points will be awarded. The 
estimated return on investment should be determined by dividing the 
total cost of the project by the estimated projected net annual income 
and/or energy savings of the renewable energy system.
    (5) Amount Requested. If the amount of the grant request is less 
than $100,000, 15 points will be awarded; $100,000-$200,000, 10 points 
will be awarded; or $200,001-$300,000, 5 points will be awarded.
    (6) Leveraged Funds. If the applicant has provided eligible 
leveraged funds of over 90 percent, 15 points will be awarded; 85 
percent-90 percent, 10 points will be awarded; or 80 percent-84 
percent, 5 points will be awarded.
    (7) Management. If the renewable energy system will be monitored 
and managed by a qualified third-party operator, such as pursuant to a 
service contract, maintenance contract, or remote telemetry, an 
additional 10 points will be awarded. Aspects of management must be 
discussed in the technical requirements.
    B. Criteria for applications for energy efficiency improvements 
are:
    (1) Energy savings. If the estimated energy expected to be saved by 
the installation of the energy efficiency improvements will be 35 
percent or greater, 20 points will be awarded; 30 percent-34 percent, 
15 points will be awarded; 25 percent-29 percent, 10 points will be 
awarded; or 20 percent-24 percent, 5 points will be awarded. This will 
be determined by the projections in an energy audit.
    (2) Cost Effectiveness. If the proposed energy efficiency 
improvements will

[[Page 17016]]

return the cost of the investment in 2 years or less, 25 points will be 
awarded; 3-5 years, 20 points will be awarded; 6-8 years, 15 points 
will be awarded; or 9-11 years, 10 points will be awarded. The 
estimated return on investment is calculated by dividing the total 
project cost by the total dollars of energy savings of the energy 
efficiency improvements.
    (3) Amount Requested. If the amount of the grant request is 
$10,000-$50,000, 15 points will be awarded; $50,001-$125,000, 10 points 
will be awarded; or $125,001-$200,000, 5 points will be awarded.
    (4) Leveraged Funds. If the applicant has provided eligible 
leveraged funds of over 90 percent, 15 points will be awarded; 85 
percent-90 percent, 10 points will be awarded; or 80 percent-84 
percent, 5 points will be awarded.

Methods for Evaluating and Ranking Applications

    State Rural Development Office personnel will review all 
applications. Ineligible and incomplete applications may be returned to 
the applicant and not evaluated further. Projects not financially or 
technically feasible will not be considered for funding. Qualified 
industry experts will review the technical requirements of the 
applications. The State Rural Development Office will score the 
application based on the Evaluation Criteria and submit it to the 
National Office to be reviewed and ranked. The National Office will 
rank applications based on its total score. The highest scoring 
applications will be selected until all the funds are depleted. 
Recommendations for funding will be forwarded to the Administrator of 
RBS, who will award the grants.

Planning and Performing Development

    RBS will use 7 CFR 1780.54, 1780.57 (b)-(f) and (h)-(o), 1780.61, 
1780.67, 1780.68, 1780.70, 1780.72, 1780.74, 1780.75, and 1780.76 for 
planning, designing, procurement methods and procedures, bidding, 
contract award and administration, and construction of renewable energy 
system and energy efficiency improvement projects as applicable. 
However, grantees are not authorized to construct the facility/project/
improvement in total, or in part, or utilize its own personnel and/or 
equipment under this NOFA.

Servicing Regulations

    Grants will be serviced in accordance with 7 CFR, part 1951, 
subpart E.

Grantee Requirements

    The grantee must sign a Grant Agreement (which is published at the 
end of the NOFA) and abide by all requirements contained in the Grant 
Agreement or any other Federal statutes or regulations governing this 
program. Failure to follow the requirements may result in termination 
of the grant and adoption of other remedies provided for in the Grant 
Agreement.

Paperwork Reduction Act

    The collection of information requirements contained in this notice 
have received temporary emergency clearance by the Office of Management 
and Budget under Control Number 0570-0044. However, in accordance with 
the Paperwork Reduction Act of 1995, RBS will seek standard OMB 
approval of the reporting requirements contained in this Notice and 
hereby opens a 60-day comment period.

Abstract

    RBS needs to receive the information contained in this collection 
of information to select the projects it believes will provide the most 
long-term economic benefit to rural areas. The selection process is 
competitive. RBS will ensure that the funds are used for the intended 
purpose.
    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 4.3 hours per response.
    Respondents: Agricultural producers and rural small businesses.
    Estimated Number of Respondents: 133.
    Estimated Number of Responses Per Respondent: 11.
    Estimated Number of Responses: 1,463.
    Estimated Total Annual Burden on Respondents: 6,251 hours.
    Copies of this information collection can be obtained from Tracy 
Givelekian, Regulations and Paperwork Management Branch, at (202) 692-
0039.
Comments
    Comments are invited on (a) whether the proposed collection of 
information is necessary for the proper performance of the functions of 
RBS, including whether the information will have practical utility; (b) 
the accuracy of the RBS estimate of the burden of the proposed 
collection of information, including the validity of the methodology 
and assumptions used; (c) ways to enhance the quality, utility, and 
clarity of the information to be collected; and (d) ways to minimize 
the burden of the collection of information on those who are to 
respond, including through the use of appropriate automated, 
electronic, mechanical, or other technological collection techniques or 
other forms of information technology. Comments may be sent to Tracy 
Givelekian, Regulations and Paperwork Management Branch, U.S. 
Department of Agriculture, Rural Development, STOP 0742, 1400 
Independence Ave. SW., Washington, DC 20250. All responses to this 
notice will be summarized and included in the request for Office of 
Management and Budget approval. All comments will also become a matter 
of public record.

    Dated: April 1, 2003.
Thomas C. Dorr,
Under Secretary, Rural Development.

OMB No. 0570-0044

United States Department of Agriculture

Rural Business-Cooperative Service

Renewable Energy/Energy Efficiency Grant Agreement
    THIS GRANT AGREEMENT (Agreement) dated ---------- , is a contract 
for receipt of grant funds under the Renewable Energy/Energy Efficiency 
program (Title IX, Section 9006 of Public Law 107-171).

 BETWEEN---------------------------------------------------------------
(Grantee) and the United States Of America acting through the Rural 
Business-Cooperative Service (RBS), Department of Agriculture 
(Grantor).

WITNESS:

    All references herein to ``Project'' refer to installation of a 
renewable energy system or energy efficiency improvement located at --
---------- . The grant is $------ (Grant) which is ------ percent of 
the Eligible Project Costs.
    Should actual project costs be lower than projected in the 
agreement, the final amount of grant will be adjusted to remain at the 
above percentage of the final Eligible Project Cost.

WHEREAS:

    Grantee has determined to undertake the retrofitting, acquisition, 
construction, or purchase of a renewable energy/energy efficiency 
project described in the application dated ------ (Project) with a 
total estimated cost of $------ .
    Grantee is able to finance or obtain funding from other sources for 
$------ .
    Now, therefore, in consideration of said grant, Grantee agrees that 
Grantee:

    Is in compliance with and will comply in the course of the 
Agreement with all applicable laws, regulations, Executive Orders, and 
other generally

[[Page 17017]]

applicable requirements, including those contained in 7 CFR part 3015, 
``Uniform Federal Assistance Regulations,'' which are incorporated into 
this agreement by reference, and such other statutory provisions as are 
specifically contained herein.

    According to the Paperwork Reduction Act of 1995, an agency may 
not conduct or sponsor, and a person is not required to respond to, 
a collection of information unless it displays a valid OMB control 
number. The valid OMB control number for this information 
collections is 0570-0044. The time required to complete this 
information collection is estimated to average 30 minutes per 
response, including the time for reviewing instructions, searching 
existing data sources, gathering and maintaining the data needed, 
and completing and reviewing the collection of information.

    The parties agree to all of the terms and provisions of any policy 
or regulations promulgated under Title IX, Section 9006 of the Farm 
Security and Rural Investment Act of 2002 as amended. Any application 
submitted by the Grantee for this grant, including any attachments or 
amendments, are incorporated and included as part of this Agreement. 
Any changes to these documents or this Agreement must be approved in 
writing by the Grantor.
    The Grantor may terminate the grant in whole, or in part, at any 
time before the date of completion, whenever it is determined that the 
Grantee has failed to comply with the conditions of this Agreement.

Use of Grant Funds

    Will use grant funds and leveraged funds only for the purposes and 
activities specified in the application approved by the Grantor 
including the approved budget. Budget and approved use of funds are as 
further described in the Grantor Letter of Conditions and amendments or 
supplements thereto. Any uses not provided for in the approved budget 
must be approved in writing by the Grantor. The proposed renewable 
energy system or energy efficiency improvements shall be constructed/
installed in accordance with any energy audit recommendations or 
engineering or other technical reports provided by the Grantee and 
approved by the Grantor.

Civil Rights Compliance

    Will comply with Executive Order 12898, the Americans with 
Disabilities Act of 1990, Title VI of the Civil Rights Act of 1964, and 
Section 504 of the Rehabilitation Act of 1973. This shall include 
collection and maintenance of data on the race, sex, and national 
origin of Grantee's membership/ ownership and employees. This data must 
be available to the Grantor in its conduct of Civil Rights Compliance 
Reviews, which will be conducted prior to grant closing and 3 years 
later, unless the final disbursement of grant funds has occurred prior 
to that date.

Financial Management Systems

    A. Will provide a Financial Management System in accordance with 7 
CFR part 3015, including but not limited to:
    1. Records that identify adequately the source and application of 
funds for grant-supported activities. Those records shall contain 
information pertaining to grant awards and authorizations, obligations, 
unobligated balances, assets, liabilities, outlays, and income.
    2. Effective control over and accountability for all funds, 
property, and other assets. Grantees shall adequately safeguard all 
such assets and ensure that they are used solely for authorized 
purposes.
    3. Accounting records prepared in accordance with generally 
accepted accounting principles (GAAP) and supported by source 
documentation.
    4. Grantee tracking of fund usage and records that show matching 
funds and grant funds are used in equal proportions. The grantee will 
provide verifiable documentation regarding matching funds usage, i.e., 
bank statements or copies of funding obligations from the matching 
source.
    B. Will retain financial records, supporting documents, statistical 
records, and all other records pertinent to the grant for a period of 
at least 3 years after final grant disbursement, except that the 
records shall be retained beyond the 3-year period if audit findings 
have not been resolved. The Grantor and the Comptroller General of the 
United States, or any of their duly authorized representatives, shall 
have access to any books, documents, papers, and records of the 
Grantee's which are pertinent to the grant for the purpose of making 
audits, examinations, excerpts, and transcripts.

Procurement and Construction

    A. Will comply with the applicable procurement requirements of 7 
CFR part 1780 regarding standards of conduct, open and free 
competition, access to contractor records, and equal employment 
opportunity requirements.
    B. Will, for construction contracts in excess of $100,000, provide 
performance and payment bonds for 100 percent of the contract price.

Acquired Property

    A. Will in accordance with 7 CFR part 3015, hold title to all real 
property identified as part of the project costs, including 
improvements to land, structures or things attached to them. Movable 
machinery and other kinds of equipment are not real property (see Item 
2 below). In addition:
    1. Approval may be requested from Grantor to transfer title to an 
eligible third party for continued use for originally authorized 
purposes. If approval is given, the terms of the transfer shall provide 
that the transferee must assume all the rights and obligations of the 
transferor, including the terms of this Grant Agreement.
    2. If the real property is no longer to be used as provided above, 
disposition instructions of the Grantor shall be requested and 
followed. Those instructions will provide for one of the following 
alternatives:
    a. The Grantee may be directed to sell the property, and the 
Grantor shall have a right to an amount computed by multiplying the 
Federal (Grantor) share of the property times the proceeds from sale 
(after deducting actual and reasonable selling and fix-up expenses, if 
any, from the sale proceeds). Proper sales procedures shall be followed 
which provide for competition to the extent practicable and result in 
the highest possible return.
    b. The Grantee shall have the opportunity of retaining title. If 
title is retained, Grantor shall have the right to an amount computed 
by multiplying the market value of the property by the Federal share of 
the property.
    c. The Grantee may be directed to transfer title to the property to 
the Federal Government provided that, in such cases, the Grantee shall 
be entitled to compensation computed by applying the Grantee's 
percentage of participation in the cost of the program or project to 
the current fair market value of the property.
    Disposition requirements for real property shall expire 20 years 
from the date of final grant disbursement. This Grant Agreement covers 
the following described real property (use continuation sheets as 
necessary).
    B. Will abide by the requirements of 7 CFR part 3015 pertaining to 
equipment, which is acquired wholly or in part with grant funds.
    Disposition requirements for equipment will expire at the end of 
each item's useful life (which is based on a straight-line, non-
accelerated method). This Grant Agreement covers the following 
described equipment (use continuation sheets as necessary):

[[Page 17018]]

     Item Useful Life

    C. Not to encumber, transfer, or dispose of the property or any 
part thereof, acquired wholly or in part with Grantor funds, without 
the written consent of the Grantor.
    D. If required by Grantor, record liens or other appropriate 
notices of record to indicate that personal or real property has been 
acquired or improved with Federal grant funds, and that use and 
disposition conditions apply to the property as provided by 7 CFR part 
3015.

Reporting

    A. Will after Grant Approval through Project Construction:
    1. Provide periodic reports as required by the Grantor. A financial 
status report and a project performance report will be required on a 
quarterly basis (Due 30 working days after end of the quarter. For the 
purposes of this grant, quarters end on March 31, June 30, September 
30, and December 31). The financial status report must show how grant 
funds and leveraged funds have been used to date and project the funds 
needed and their purposes for the next quarter. A final report may 
serve as the last quarterly report. Grantees shall constantly monitor 
performance to ensure that time schedules are being met and projected 
goals by time periods are being accomplished. The project performance 
reports shall include the following:
    a. A comparison of actual accomplishments to the objectives for 
that period.
    b. Reasons why established objectives were not met, if applicable.
    c. Reasons for any problems, delays, or adverse conditions which 
will affect attainment of overall program objectives, prevent meeting 
time schedules or objectives, or preclude the attainment of particular 
objectives during established time periods. This disclosure shall be 
accomplished by a statement of the action taken or planned to resolve 
the situation.
    d. Objectives and timetables established for the next reporting 
period.
    2. Final project development report which includes a detailed 
project funding and expense summary; summary of facility installation/
construction process including recommendations for development of 
similar projects by future applicants to the program.
    3. For the year(s) in which in Grant funds are received, Grantee 
will provide an annual financial statement (Generally Accepted 
Accounting Principles basis for small businesses) to Grantor.
    B. Will after Project Construction:
    1. Allow Grantor access to the project and its performance 
information during its useful life.
    2. Provide periodic reports as required by Grantor and permit 
periodic inspection of the project by a representative of the Grantor. 
Grantee reports will include but not be limited to the following:
    a. Purchase of Renewable Energy System Project Report. Commencing 
the first full calendar year following the year in which project 
construction was completed and continuing for 3 full years a report 
detailing the following will be provided:
    i. Quantity of Energy Produced. Grantee to report the actual amount 
of energy produced in BTUs, kilowatts, or similar energy equivalents.
    ii. Environmental Benefits. If applicable, Grantee to provide 
documentation that identified health and/or sanitation problem has been 
solved.
    iii. Return on Investment. Grantee to provide the annual income 
and/or energy savings of the renewable energy system.
    iv. Summary of the cost of operating and maintaining the facility.
    v. Description of any maintenance or operational problems 
associated with the facility.
    vi. Recommendations for development of future similar projects.
    b. Energy Efficiency Improvement Project Report. Commencing the 
first full calendar year following the year in which project 
construction was completed and continuing for 2 full years. Grantee 
will report the actual amount of energy saved due to the energy 
efficiency improvements.

Grant Disbursement

    Will disburse grant funds as scheduled. Unless required by funding 
partners to be provided on a pro rata basis with other funding sources, 
grant funds will be disbursed after all other funding sources have been 
expended.
    A. Requests for reimbursement may be submitted monthly or more 
frequently if authorized to do so by the Grantor. Ordinarily, payment 
will be made within 30 days after receipt of a proper request for 
reimbursement.
    B. Grantee shall not request reimbursement for the Federal share of 
amounts withheld from contractors to ensure satisfactory completion of 
work until after it makes those payments.
    C. Payment shall be made by electronic funds transfer.
    C. Payment shall be made by electronic funds transfer.
    D. Standard Form 271, ``Outlay Report and Request for Reimbursement 
for Construction Programs,'' or other format prescribed by Grantor 
shall be used to request Grant reimbursements.
    E. For renewable energy projects, grant funds will be disbursed in 
accordance with the above through 90 percent of grant disbursement. The 
final 10 percent of grant funds will be held by the Grantor until 
construction of the project is completed, operational, and has met or 
exceeded the test run requirements as set out in the grant award 
requirements.

Post-Disbursement Requirements

    Will own, operate, and provide for continued maintenance of the 
Project.
    IN WITNESS WHEREOF, Grantee has this day authorized and caused this 
Agreement to be signed in its name and its corporate seal to be 
hereunto affixed and attested by its duly authorized officers 
thereunto, and the Grantor has caused this Agreement to be duly 
executed in its behalf by:

-----------------------------------------------------------------------
Name:
Title:
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Date

United States of America

Rural Business-Cooperative Service

 By:-------------------------------------------------------------------
Name:
Title:

[FR Doc. 03-8491 Filed 4-7-03; 8:45 am]
BILLING CODE 3410-XU-U