Unleashing American Energy and Economic Prosperity; Rural Energy for America Program (REAP)

The 7 CFR 4280 Subpart B governs REAP and provides grants to Agricultural Producers and Rural Small Businesses for the purpose of purchasing and installing Renewable Energy Systems or to make Energy Efficiency Improvements. The program also provides grants to conduct Energy Audits and provide recommendations and information on Renewable Energy Development Assistance. Subpart B was last updated April 27, 2021 and confirmed on February 28, 2022 primarily to remove the provisions relating to guaranteed only loans promulgated through the OneRD initiative, now in 7 CFR 5001.

This program reduces energy costs and consumption and helps meet the Nation's critical energy needs; however, based on feedback received from applicants and stakeholders during the normal course of business, the current regulation is perceived as complicated and burdensome for the average person or business to understand and often causes Applicants to hire grant writers and contractors to apply and administer funding further reducing their opportunities for economic prosperity. The Agency is revising the program requirements and processes to address these concerns and to support Executive Orders 14154, “Unleashing American Energy” and 14156, “Declaring a National Energy Emergency,” through reducing high energy costs and providing a diversified and affordable supply of energy to drive our Nation's economic prosperity by promoting efficiencies and reducing compliance costs. Consistent with the May 2025 USDA Farmers First Policy (https://www.usda.gov/sites/default/files/documents/farmers-first-small-family-farms-policy-agenda.pdfhttps://www.usda.gov/sites/default/files/documents/farmers-first-small-family-farms-policy-agenda.pdf) and the National Farm Security Action Plan (https://www.usda.gov/sites/default/files/documents/farm-security-nat-sec.pdf), which direct USDA to safeguard Cropland, elevate farmer interests, and disincentivize solar development on farmland, USDA updated the REAP program based on strong feedback from farmers, ranchers, rural businesses, and state partners, which was received through the normal course of business in person or through phone calls and emails. Many stakeholders raised concerns that some large ground mount solar projects were contributing to artificially inflated land

prices, displacing productive Cropland, or exceeding a business's actual energy needs. They voiced further concerns regarding components manufactured in foreign adversary nations that might detract from the goals of supporting American manufacturing. The updated rule focuses REAP support on appropriately scaled, on farm renewable energy systems, not large or utility scale solar developments, and excludes projects that involve prohibited components from foreign adversary nations, as defined by 15 CFR 791.4. By limiting oversized ground mount installations, protecting Cropland, and ensuring systems match genuine energy use, USDA is safeguarding farmland, preventing market distortions, and ensuring REAP funds directly benefit rural producers and small businesses while maintaining program fairness and integrity.

This revision streamlines, simplifies, and reduces burden for the application process. The Agency will publish a Notice of Funding Opportunity providing additional details on application procedures, funding priorities, and how applications will compete. REAP is a competitive grant program. Projects compete based on score, and funding to support all eligible applications is not guaranteed. Applicants whose projects are not funded must re-evaluate program eligibility and, if their project still meets the program criteria, may submit a new application in the following application cycle.

This section presents the changes to the existing grant regulation which includes revising subpart B into a more sequential order of events as they occur during the application, award, and post-award processes. Subpart B regulates grants for Renewable Energy Systems and Energy Efficiency Improvements. This subpart has been revised to prohibit the installation of solar and wind renewable energy systems on Cropland, prohibit a solar photovoltaic system or wind turbine consisting of any component made in a country named as a foreign adversary, limit applicant eligibility to the Highest-Level Owner, ensure alignment of the definition of Small Business with the definition used by the Small Business Administration, and shift the end date of the Project Period to 12 to 24 months prior to application. Subpart C regulates grants for Energy Audits and Renewable Energy Development Assistance. To promote clarity and reader comprehension defined terms have been capitalized throughout the preamble and regulatory text. Additional context and examples are outlined in the specific preamble sections that follow.

Sec. 4280.101 Purpose

This section was updated to move grants for Energy Audits and Renewable Energy Development Assistance out of subpart B and into subpart C because this portion of the program operates as a separate technical assistance program targeting a different pool of eligible applicants that compete in a separate competitive funding competition. The information regarding the use of up to 10 percent of the award amount for broadband infrastructure was moved to Sec. 4280.125 because it is related to the use of funds.

Sec. 4280.102 Organization of Subpart

This section was revised to reflect the reorganization of the content to reflect the sequence of events as they occur during the application, award, and post-award processes.

Sec. 4280.103 Acronyms

This section was changed from “Definitions” to “Acronyms.” This section was added to make it easier for readers to quickly identify frequently used acronyms.

Sec. 4280.104 Definitions (Formerly Sec. 4280.103)

This section was changed to remove language on exception authority as it is not authorized by the program's authorizing statute. Definitions were moved to this section to allow for the addition of the new Acronyms section located at Sec. 4280.103. This section was revised to be consistent with the definitions for 2 CFR part 200 at 2 CFR 200.1. Language was also added to this section to clarify that additional defined terms can be found in applicable regulations. The following terms are removed, revised, or added.

Administrator was removed because the term is no longer used in the regulation.

Agency was revised to be consistent with the definition used in 7 CFR part 4284 subparts F, J, and K.

Agricultural commodity was added because it supports the revised definition for Agricultural Producer.

Agricultural producer was revised to more closely align with the definition used in 7 CFR part 4284 subpart J and subpart K. We have also included a section of the definition that specifically applies to wholly-owned Tribal entities to allow these entities to continue to be eligible for the program in a way that accommodates the way these entities are organized.

Ancillary infrastructure was added to clarify how this term is used in the context of this regulation.

Annual energy production was added to clarify how the annual output of energy produced by a Renewable Energy System should be reported.

Applicant was revised to more closely align with the definition used in 7 CFR part 4284 subparts F, J, and K.

Battery energy storage system was added to support the clarification of project eligibility in Sec. 4280.122.

Biofuel was removed because it is no longer used in the regulation.

Biogas was revised to include examples of acceptable Renewable Energy Biogas projects.

Commercially available was revised to remove ambiguity and to remove the alternative to use a domestic or foreign system that has been certified by a recognized industry organization whose certification standards are acceptable to the Agency.

Complete application was removed because it is not needed. The concept of a complete application and its significance to the application process is explained in Sec. Sec. 4280.131 and .140(a).

Costs incurred was removed because the term is no longer used in the regulation.

Cost sharing was added to be consistent with 2 CFR part 200.

Council was relocated to the newly added Sec. 4280.204 because it is only applicable to the Energy Audit and Renewable Energy Development Assistance Grants.

Cropland was added to be consistent with 7 CFR 718.2.

Departmental regulations was removed because it is now addressed in Sec. 4280.108(c).

Design/build method was removed because the term is no longer used in the regulation.

Distribution components was added to clarify how the term is used in the context of this regulation.

Eligible project costs was removed because uses of funds and allowable and unallowable costs are addressed in Sec. 4280.125.

End user was added to support the revised section on conflict of interest in Sec. 4280.106.

Energy assessment was revised to move the requirement for when the Energy Assessment needs to be submitted to Sec. 4280.131(b)(2).

Energy audit was revised to limit the person who can conduct the Energy Audit to an Energy Auditor and to identify acceptable standards.

Energy efficiency improvement was revised to clarify that the Energy Efficiency Improvements must be for the Applicant's operations.

Equipment was added to be consistent with 2 CFR part 200.

Existing business was revised to clarify what is considered an Existing Business. The definition no longer treats a new business and Existing Business applying as co-Applicants as an existing business.

Farm or Ranch was added to support the revised definition of Agricultural Producers.

Feasibility study was revised to clarify that the individual conducting the report must have relevant knowledge, expertise, and experience and to further clarify that the findings must be related to the feasibility of the proposed Project or operation located at a specific site.

Federal award was added to be consistent with 2 CFR part 200.

Financial assistance agreement was revised to clarify what is included and which form is used.

Financial feasibility was removed because the term is no longer used in the regulation.

For-profit organization was added to be consistent with 2 CFR part 200.

Geothermal source was added to support the Geothermal Direct Generation System and Geothermal Electric Generation System definitions.

Highest-level owner was added to support the revised section on Applicant eligibility in Sec. 4280.120. Below are examples of what the Agency considers to be Highest-Level Owners:

(1) One example is a sole proprietorship. This company is owned by one individual and could apply as an Agricultural Producer if they are engaged in farming or ranching as their business. Alternatively, the company could apply as a Rural Small Business if it meets the definition of a Small Business and is located in a Rural area.

(2) Another example is an entity owned by a group of people, such as a family-owned LLC. This entity is owned by multiple individuals, not by one or more entities, and would be eligible to apply if it meets the definition of an Agricultural Producer or a Rural Small Business.

(3) A third example is an entity that owns two subsidiaries--ABC Corp. While the entity that owns the subsidiaries is eligible to apply as a Highest-Level Owner if it meets the definition of either Agricultural Producer or Rural Small Business, neither of the subsidiaries is eligible to apply as a Highest-Level Owner because they are owned by another entity--ABC Corp. [GRAPHIC] [TIFF OMITTED] TR01OC26.009

Hybrid is updated to the term Hybrid System.

Hydroelectric source is updated to Hydroelectric System.

Hydrogen project is updated to Hydrogen System.

Immediate family was revised to be consistent with the use of the term in 7 CFR part 4284.

Indian Tribe was added to be consistent with 7 U.S.C. 8101(10).

Institution of Higher Education was relocated to the newly added Sec. 4280.204 because it is only applicable to the Energy Audit and Renewable Energy Development Assistance Grants.

Instrumentality was relocated to the newly added Sec. 4280.204 because it is only applicable to the Energy Audit and Renewable Energy Development Assistance Grants.

Interconnection agreement was revised to clarify the definition.

Key service providers was added to clarify Project eligibility requirements in Sec. 4280.122.

Kilowatt was added to support the definition of Rated System Size.

Kilowatt-hour was added to support the definition of Simple Payback.

Letter of conditions was added to support the award notification process described at Sec. 4280.151.

Local government was added to support the updated conflict of interest policy located at Sec. 4280.106.

Matching funds was removed to be consistent with 2 CFR part 200. The term Cost Sharing is now used to be consistent with 2 CFR part 200.

Megawatt was added to support the definition of Rated System Size.

Megawatt-hour was added to support the definition of Annual Energy Production.

Metering agreement was added to provide examples of the most common types of agreements. Examples of the most common metering agreements are described below.

(1) Conventional Net Metering. The entity sends excess electricity to the grid and receives a bill credit equivalent to the full retail price of power; in other words, the energy rate is credited on a 1:1 basis.

(2) Net Billing. The entity sends excess electricity to the grid and receives a bill credit equivalent to less than the full retail price of power; in other words, the energy rate is credited on a less than 1:1 basis. For example, the energy rate credited is the wholesale rate of the energy.

(3) Aggregate Net Metering. The entity sends excess energy to the grid, and that energy is used to offset the usage of other meters owned by the entity on same property.

(4) Virtual Net Metering. The entity sends excess energy to the grid, and that energy is used to offset the usage of other meters owned by the entity on one or more different properties.

Off-grid system was added to support the definition of Simple Payback.

Passive investor was removed because the term is no longer used in the regulation.

Person was removed because it was confusing and used inconsistently.

Power purchase agreement was revised to include the requirements for a Power Purchase Agreement.

Principals was added to support the Agency's compliance with screening for excluded parties as well as checking for duplicate applications submitted by entities owned by the same individuals.

Project was added to clarify what is meant when the Agency uses that term.

Project cost was added to be consistent with 2 CFR part 200.

Project period was added to reflect the timeframe during which allowable Project Costs are incurred.

Public power entity was relocated to the newly added Sec. 4280.204 because it is only applicable to the Energy Audit and Renewable Energy Development Assistance Grants.

Qualified consultant was removed because the term is no longer used in the regulation. We are replacing this term with the phrase “independent professional” which is used in the same manner. The Agency continues to expect that the work is completed by an individual who possesses the necessary qualifications to do the work and that the individual has no conflict of interest as described in section .106 of this subpart.

Ranch was added to support the definition of Agricultural Producer.

Rated power was removed because the term is no longer used in the regulation.

Rated system size was added to allow the Agency to identify the eligibility system size restrictions for Hydroelectric System Projects and to obtain more consistent information about RES sizes as part of the application.

Real property was added to be consistent with 2 CFR part 200

Recipient was added to be consistent with 2 CFR part 200.

Refurbished was revised to clarify the definition.

Renewable Energy development assistance (REDA) was relocated to the newly added Sec. 4280.204 because it is only applicable to the Energy Audit and Renewable Energy Development Assistance Grants.

Renewable Energy site assessment was relocated to the newly added Sec. 4280.204 because it is only applicable to the Energy Audit and Renewable Energy Development Assistance Grants.

Renewable energy technical assistance was removed because the term is no longer used in the regulation.

Resource assessment was added to clarify the requirements for the Resource Assessment report.

Retrofitting was revised to clarify the definition and add examples.

Rural or Rural area was revised to simplify the definition.

Rural small business was revised to clarify the definition.

Simple payback was revised to re-order RES to be first because it is the more common application type, to adjust the calculation details to include actual values instead of projected, and to remove the paragraph related to new facilities for RES because those are no longer allowable. An example to further explain that the EEI project must have the same input and output conditions is, the calculation must include grain drying of 50,000 bushels for the 12 months prior to installation and grain drying of 50,000 bushels for 12 months after installation.

Small business was revised to simplify the definition by incorporating certain definitions and standards provided by the Small Business Administration.

Solar electric was added to clarify the requirement for the Resource Assessment.

Solar thermal was added to clarify the requirement for the Resource Assessment.

Steady state operating level was removed because the term is no longer used in the regulation.

Total eligible project costs was removed because the term is no longer used in the regulation.

Total project costs was removed and replaced with the term Project Costs.

Underserved communities was removed because the term is no longer used in the regulation.

Useful life was revised to clarify that it applies to the RES or EEI.

Veteran was removed because the term is no longer used in the regulation.

Wind energy was added to clarify the requirement for the Resource Assessment.

Sec. 4280.105 [Reserved]

This section is now reserved. The information on review or appeal rights is now located in Sec. 4280.152, Notification of unsuccessful Applicants.

Sec. 4280.10 Conflict of Interest

This section is updated to strengthen and clarify the relationships and transactions that are subject to the conflict of interest policy and to include requirements identified in 2 CFR parts 200 and 400. Examples of relationships and transactions that can involve a COI include, but are not limited, to the following.

(1) Relationships. For purposes of this subpart, relationships among the following entities can involve a COI:

(i) Applicant, their parent, affiliate, or subsidiary companies, and their employees, consultants, and contractors;

(ii) End Users and their employees, consultants, and contractors;

(iii) System installers;

(iv) Developers; and

(v) All service providers, including Key Service Providers (for example Energy Auditors, Energy Assessors).

(2) Transactions. For the purposes of this subpart, all transactions must be arm's length transactions. An arm's length transaction is a transaction in which the involved parties act independently and have no relationship to each other. The concept of an arm's length transaction allows the market to ensure that both parties are acting in their own self-interest and are not subject to any pressure or duress from the other party. The following transactions can involve a COI:

(i) Advances or reimbursements of Federal Award funds;

(ii) Cost Sharing;

(iii) Procurement contracts;

(iv) Offtake agreement (i.e. agreement between the Applicant and whatever entity is taking the energy generated, e.g. End User);

(v) Site lease agreements, with the exception of agreements between the Highest-Level Owner and its wholly-owned subsidiary for the purpose of carrying out the RES or EEI;

(vi) Financing, with the exception of financing obtained through another entity wholly-owned owned by the Applicant;

(vii) Feasibility studies; and

(viii) Grant writing.

(3) Examples. Below are examples of relationships or transactions that the Agency considers to be conflicts of interest.

(i) An affiliated entity of the Applicant wants to install the system while taking profit.

(ii) The ownership of Applicant and the End User include one or more of the same individuals.

(iii) The RES developer conducts the Feasibility Study.

(iv) The RES developer writes the application.

(v) The RES developer provides financing, even through another entity owned by the developer.

(vi) The RES developer installs the system.

(vii) The RES developer purchases the tax credits.

(viii) The RES developer is an End User or an owner of the End User of the power.

Sec. 4280.108 Compliance With Other Laws and Regulations

This section is renamed and updated to clarify all levels of regulations that are applicable to this program, including Federal, Departmental, and Agency levels. The reference to 7 CFR

1901.204 was removed because that regulation is no longer available.

Sec. 4280.109 [Reserved]

This section is now reserved. The Applicant eligibility information formerly located in this section is moved under Sec. 4280.120.

Sec. 4280.110 [Reserved]

This section is now reserved. The satisfactory performance information formerly located in this section is moved to Sec. 4280.140. Information on application submission is moved to Sec. 4280.133. Information on application limits is moved to Sec. 4280.122. Information on application modification is removed because it is no longer permitted. Information on incomplete applications is moved to Sec. 4280.140. Information on application withdrawal is now located under Sec. 4280.141. Information on the technical report is removed. Information on the time limit for the use of award funds is moved to Sec. 4280.122. Information on extensions is removed and is covered in the Financial Assistance Agreement. Information on return of funds to the Agency is removed and is covered in the Financial Assistance Agreement.

Sec. 4280.111 [Reserved]

This section is now reserved. Information on eligibility notification for eligible applications is removed. The Agency will no longer notify Applicants at the eligibility determination stage of application processing due to resource limitations. Information on eligibility notification for ineligible Applicants and applications is now located under Sec. 4280.152. Information about notification of funding determinations is moved to Sec. Sec. 4280.151-.152.

Sec. 4280.112 [Reserved]

This section is now reserved. Information on Applicant eligibility is now located under Sec. 4280.120.

Sec. 4280.113 [Reserved]

This section is now reserved. Information on project eligibility is now located under Sec. 4280.122.

Sec. 4280.114 [Reserved]

This section is now reserved. Information on ineligible projects is now located under Sec. 4280.122.

Sec. 4280.115 [Reserved]

This section is now reserved. Information on minimum and maximum awards is moved to Sec. 4280.122. Information on maximum grant assistance is removed. Applicants are restricted to submitting one application per funding cycle. Information on matching funds (now called cost sharing) is now located under Sec. 4280.122. Information on eligible project costs (now called allowable use of funds) is moved to Sec. 4280.125. Information on ineligible project costs (now called unallowable use of funds) is now located under Sec. 4280.125. Information on award amount considerations is removed because it is duplicative. The Agency's application and award processes are moved to Sec. Sec. 4280.140 and .150.

Sec. 4280.116 [Reserved]

This section is now reserved. Information on application submission is now located at Sec. 4280.133. Information on application content is moved to Sec. 4280.131. Information on evaluation of applications is now located at Sec. 4280.140.

Sec. 4280.117 [Reserved]

This section is now reserved. Information on technical merit is incorporated into project eligibility under Sec. 4280.122 and application processing under Sec. 4280.140.

Sec. 4280.118 [Reserved]

This section is now reserved. Information on application requirements for applications with Project Cost of $200,000 or greater is now located under Sec. 4280.131.

Sec. 4280.119 [Reserved]

This section is now reserved. Information on application requirements for applications with a Project Cost of more than $80,000 and less than $200,000 is moved to Sec. 4280.131.

Sec. 4280.120 Applicant Eligibility

This section is changed from “Grant applications for RES and EEI projects with total project costs of $80,000 or less” to “Applicant Eligibility.” Information on application requirements for applications with a Project Cost of $80,000 or less is located under Sec. 4280.131. Notable changes include:

i. The Agency clarified the requirement for which entities are eligible to apply for funds. Agricultural Producers and Rural Small Businesses remain eligible to apply, but they must be considered Highest Level Owners, meaning no other entity owns or controls the Applicant entity. This clarification was made to ensure that certain entities do not obtain a disproportionate share of available funds and to streamline the Agency's eligibility determination process.

ii. Rural Small Business Applicants must be considered small businesses by the Small Business Administration (SBA). Relying on SBA's process and expertise ensures consistent and accurate implementation and reduces the Agency's burden when determining whether Applicants applying as Rural Small Businesses are eligible.

iii. All Applicants must be an Existing Business at the time of application. This allows the Agency to perform a risk evaluation on all Applicants as required by 2 CFR 200.206. A ratio of current assets to current liabilities of at least 1:1 is required for the Applicant to be eligible.

iv. Applicants are only eligible for one award per Federal Fiscal Year. This ensures that entities do not obtain a disproportionate share of available funds and streamlines the Agency's eligibility determination process. For example, if John Smith and Jane Doe own ABC Corporation, the Agency will only make one award to ABC Corporation. No additional awards to ABC Corporation or to entities owned by John Smith and Jane Doe, including sole proprietorships, will be approved in a given FFY.

v. Applicants with any foreign investment or ownership will be evaluated by the Agency pursuant to applicable law. This aligns with Executive Order 14315, dated July 7, 2025, on “Ending Market Distorting Subsidies for Unreliable, Foreign Controlled Energy Sources”.

vi. Applicants deriving any income from gambling activities are no longer eligible to apply. State authorized lottery proceeds and net revenues generated from gaming by a Tribe pursuant to Tribal law or the Indian Gaming Regulatory Act, 25 U.S.C. 2107 et seq., conducted in part for the purpose of raising funds for the approved Project continue to be excluded from this restriction after Agency review.

Sec. 4280.121 [Reserved]

This section is now reserved. Information on scoring applications is moved to Sec. 4280.140.

Sec. 4280.122 Project Eligibility

This section is changed from “Selecting RES and EEI grant applications for award” to “Project Eligibility.” Information on selecting applications for an award is located under Sec. 4280.150. This section now includes the former “Technical Merit” requirements identified in former Sec. 4280.117 as well as Appendices A, B, and C. These requirements were treated as eligibility requirements by the

Agency, so adding them to this section clarifies the Agency's consideration of this information. Notable changes include:

i. The project must be completed between 12 to 24 months prior to the date of application. With the exception that for the first application window following the release of the updated regulation the Project Period end date may be between 12 and 36 months prior to submission of the application.

ii. The Applicant must also provide 12 months of actual energy production or energy savings as part of the application. This change is being implemented for several reasons:

a. Based on how the program has been implemented and utilized in the past, the Agency is aware that many applicants felt the need to begin their Projects as soon as they received notice that a complete application had been received by the Agency. But they were often confused about what charges were allowable to charge to the award, and this confusion resulted in a significant disallowance of costs and unexpected expenses to the applicants. By shifting the Project Period, applicants can now complete their Projects at a time that is best for their business and have a better- defined Project Period for determining cost allowability.

b. The Agency also determined that many previous applications were proposing Projects for systems that were significantly oversized for their business due to the financial incentive of receiving a grant. By shifting the Project Period to occur prior to application, the Agency is incentivizing right-sized systems that meet the needs of the applicant's business, while allowing for some growth, and are viable and sustainable both from a financial perspective and from an energy generation or energy savings perspective. We recognize that there is some uncertainty about whether an applicant will receive an award, but we expect that uncertainty to be a factor in the applicant's decision- making process about purchasing an RES or completing EEI. Because of the increase in focus on viability and sustainability, we expect any awards will contribute significantly to the health of the businesses that receive them and allow better future cash flow and expansion.

c. This change also ensures that the Agency receives actual data regarding the energy produced and/or saved for the Project. This actual data allows us to more accurately evaluate the merit of the Projects and to demonstrate program performance.

d. The Agency understands that there may be concerns from applicants about how to finance their Projects when the grant funding is expected after the Project is completed. To address those concerns, the Agency is making it clear that the REAP Guaranteed Loan Program, as implemented through 7 CFR 5001, is available to support potential applicants with up-front costs of the RES or EEI.

e. The Agency also understands the concerns expressed by recent applicants to the REAP RES EEI Program after a Stakeholder Announcement was issued on March 31, 2026 that discontinued processing pending applications. Structuring the program so that the Project Period occurs prior to the application date allows any applicants with pending applications to be able to resubmit applications, provided they meet the requirements of the program.

iii. The site must be owned or controlled via lease at least 12 months prior to the Project period. The regulation outlines items required in lease agreements. This change is made to align with the above requirement for when the Project must be completed.

iv. Wind and solar systems on Cropland cannot be retrofitted using REAP funds. This change is made as part of Executive Order 14315, “Ending Market Distorting Subsidies for Unreliable, Foreign Controlled Energy Sources.”

v. The provision to allow Energy Efficiency Improvements for new building construction was removed to streamline program administration.

vi. The language on Key Service Provider qualifications and conflict of interest was clarified.

vii. Combined heat and power projects (CHP) using steam instead of Renewable Biomass must apply as an EEI project. This change was made to clarify how CHP Projects must apply.

viii. The minimum award amount for both RES and EEI is now $1,500, versus two thresholds for RES and EEI grant applications. This change was made to ensure consistency between RES and EEI applications.

ix. Rural area eligibility was amended so the project must be located in a rural area. This change was made to ensure funds are directed to rural areas.

x. Reference to environmental requirements were updated to refer to updated USDA regulations at 7 CFR 1b.

xi. The provision allowing shared meters with residences was removed. This change streamlines application processing and helps ensure that energy is not used for residential purposes.

xii. The provisions regarding eligible and noneligible residential use was clarified. Only community solar subscription programs, nursing homes and assisted living facilities, and for-profit hotels that meet the requirements noted in the regulation are eligible.

xiii. To facilitate the best use of government dollars, Simple Payback must be equal or less than the Useful Life of the project assets in order for the project to be eligible.

xiv. Energy storage systems including Battery Energy Storage Systems are limited to a capacity of 120% of the average energy use of the Applicant for the 12 months prior to the installation of the RES with energy storage system or completion of the EEI. This change was made to encourage installation of right-size systems.

xv. To streamline project completion and to ensure that each application represents one singular project, applications to install a RES or an EEI at more than one location are no longer eligible. The rationale is that it is more efficient in terms of application burden for both applicants and the agency. This efficiency can be seen in the way project eligibility must be demonstrated and assessed. An applicant with a multi-location project would have to provide eligibility information for each location and then the Agency would have to assess the eligibility for each location. One example is that the applicant must provide 12 months pre-installation and 12 months post-installation of utility bills for all locations. By restricting to one location, we remove the burden for the applicant and the agency in reviewing multiple locations worth of 2 years of utility bills. Another example is that a project with multiple locations would have to wait until the RES or EEI is installed at all locations prior to applying. Different locations may have different timelines and that could impact the overall eligibility for the program.

xvi. To carry out the Secretary's Small Family Farms Agenda and in response to feedback obtained during the normal course of business from applicants and stakeholders, (1) ground mount solar photovoltaic and wind turbines installed on certified Cropland, as defined by the Farm Service Agency in 7 CFR 718.2, are not eligible; (2) solar photovoltaic and wind systems that cannot document commensurate historical energy usage are not eligible; and (3) solar photovoltaic and wind systems, both ground mount and roof mount, consisting of any component made in a country named as a foreign adversary are not eligible. Note that the Agency has identified an exception for Projects completed prior to the publication of the regulation to allow for potential applicants to transition to

components made in countries not named as foreign adversaries.

xvii. To streamline program administration, flexible fuel pumps, electric vehicles, electric vehicle chargers and charging stations are identified as not eligible.

xviii. To preserve grant funds for projects that best fit the statutory purposes of REAP, the following projects are not eligible for REAP grant funds: (1) projects that include only moving Renewable Energy from one point to another, for example Biogas pipelines; (2) Retrofitting of an existing Renewable Energy System to add an energy storage system; (3) stand-alone energy storage system projects.

xix. Regarding the eligibility of mobile systems, EEI projects to a vehicle and RES projects that are not directly mounted on a vehicle used to carry the Applicant's business operations are ineligible for assistance. Examples of mobile systems that are not eligible are solar panels and battery storage systems mounted on a trailer. This change was made to clarify the eligibility of Projects involving mobile systems. Examples of eligible mobile systems include, but are not limited to, installing a solar panel on a food truck used by the applicant to conduct business operations--such as powering the truck's refrigeration system--or in alignment with Executive Order 14276, improving the energy efficiency of a reverse osmosis system on a fisherman's boat.

xx. The prohibition against systems that include a mechanism for dispending energy at retail was moved from the definition section to the section discussing eligibility to make the information easier to find. Examples of dispensing energy at retail that are not eligible includes electric vehicle chargers or charging stations and flexible fuel pumps.

xxi. The regulation clarifies that distribution-only Projects are ineligible. This information was previously discussed in the definitions section regarding Renewable Energy Systems and was moved to make the information easier to find. Examples of distribution-only projects that are not eligible include Biogas pipelines.

Sec. 4280.123 Reserved Funds Eligibility

This section is changed from “Awarding and administering RES and EEI grants” to “Reserved funds eligibility.” Information on award notification is located under Sec. 4280.151.

Sec. 4280.124 Reserved

Information on servicing (now called monitoring) awards that is specific to the Agency is now located under Sec. 4280.161. Other information is located in 2 CFR part 200. Information on reporting requirements is moved to Sec. 4280.160.

Sec. 4280.125 Use of Funds (Formerly Sec. .115(c) and (d))

This section is changed from “Construction planning and performing development” to “Use of funds.” Information on maximum open and free competition is now located under Sec. 4280.122. Information on compliance with the Equal Employment Opportunity Act is now located under Sec. 4280.122. Information on surety requirements is removed because it is no longer needed. Information on grantees accomplishing work is removed because it is no longer allowable based on the revised conflict of interest policy in Sec. 4280.106. Information on forms used is removed because it is no longer needed. Information on technical services is located under Sec. 4280.122. Information on design policies is located under Sec. 4280.122. This section now includes allowable and unallowable uses of funds. This section clarifies and expands the identification of allowable and unallowable uses of funds.

Sec. 4280.131 Application Requirements (Formerly Sec. Sec. 4280.116(b), .117, .118, .119, .120)

This section streamlines the requirements for an application. The statute requires three tiers of applications based on the cost of the activity funded by this subpart, and all application requirements are now located in this section. The Agency clarified the requirements and categorized them by the type of eligibility requirement (i.e. applicant or project) that the applicant must address. The requirements have also been updated to reflect the current eligibility for the program and to address the shift in project completion date. Formerly, information was requested based on project estimates and expectations. Now, information is requested based on actual project performance. Notable changes include:

i. The technical merit provisions of the regulation, including the appendices, have been streamlined given application volume. Specific technical questions will be incorporated into the application process. Projects will also be completed and operational prior to application filing, thus reducing the risk that the Project might not be completed and the Agency will have dedicated funding to a Project that is never operational. The Agency will also require certifications described in this section prior to payout.

ii. Former section 4280.125 Construction planning and performing development has been removed from the regulation given that projects will be complete prior to applying to the Agency. Applicants will be advised to follow provisions noted in 2 CFR 200 regarding procurement contracts, etc.

The applicant should consult with all applicable local, Tribal, state and/or Federal agencies to understand its legal, regulatory, and permitting obligations and liabilities. This includes consulting with applicable entities to ensure compliance with requirements for threatened and endangered species and cultural resources.

i. A change to application requirements that all Applicants must provide business level financial statements. Project with total projects costs of $200,000 or greater must also include two years of pro-forma financial data.

ii. Added requirement for Applicants to identify the name and percentage of foreign ownership to ensure the Agency can properly evaluate Applicants.

iii. Added requirement to identify country of origin for solar photovoltaic and wind turbine projects. This requirement applies to all system components. For example, if the system is a solar photovoltaic, the system components include the panel manufacturer, inverter manufacturer, racking manufacturer, and monitoring software.

Sec. 4280.133 Submission Requirements (Formerly Sec. 4280.122)

This section provides specific information on the submission period, the submission address, submission format, and number of applications. This information was previously supplied in an annual notice because the former section in the regulation was vague. The Agency will publish annual application windows. REAP restricts applicants to one application per federal fiscal year. For example, if John Smith and Jane Doe own ABC Corporation, the Agency will only accept one application from ABC Corporation. No additional applications from ABC Corporation or from entities owned by John Smith or Jane Doe would be accepted, including sole proprietorships. The program previously restricted applicants to one RES application and one EEI application per federal fiscal year. This restriction is implemented to ensure better distribution of funding due to the historical oversubscription of the program.

Sec. 4280.137 [Reserved]

The combined loan and grant and guaranteed loan funding requirements formerly included in this section are no longer needed. An applicant may separately apply for and separately receive a REAP guaranteed loan under 7 CFR 5001 and a REAP grant under this subpart for the same project. The 75% maximum REAP grant and guaranteed loan funding limit is noted in Sec. 4280.122(b). REAP guaranteed loans will follow provisions outlined in 7 CFR 5001.

Sec. 4280.140 Application Processing (Formerly Sec. Sec. 4280.116(c) and .121)

This section combines all of the application evaluation information in one section. It also adds eligibility evaluation and the agency's risk evaluation process, which is required by 2 CFR 200.206. The merit evaluation criteria, also called scoring criteria, have been revised to better reflect the goals of the program, to remove duplication, and to streamline the evaluation process. An example of standard rounding practices used for scoring includes, if points are to be rounded to the nearest hundredth, 57.567 will be rounded to 57.57; if points are rounded to the nearest tenth, 91.44 will be rounded to 91.4; if points are rounded to the nearest integer, 7.6 will be rounded to 8.

Sec. 4280.141 Application Withdrawal

This is a new section that explains how an Applicant can withdraw an application from consideration. The language is consistent with other Agency programs.

Sec. 4280.149 [Reserved]

The Applicant eligibility information formerly included in this section has moved to 7 CFR part 4280 Subpart C.

Sec. 4280.150 Award Selection. (Formerly Sec. 4280.122)

The Project eligibility information formerly included in this section is moved to 7 CFR4280 Subpart C. This section now includes information on how the Agency will select applications for an award. We have streamlined the process to simplify it and reduce burden. There are no longer multiple State and national competitions. There is one competition for applications of $20,000 or less and one national competition that includes unsuccessful applications for the $20,000 or less reserved funds and all other applications. To accommodate the lack of State competitions, the Agency will select the top two highest scoring applications in each State, provided those applications meet or exceed the minimum score established, and then fund applications in rank order until funds are expended or the minimum score is reached.

Sec. 4280.151 Notification of Successful Applicants (Formerly Sec. 4280.123)

The ineligible projects information formerly included in this section is moved to 7 CFR 4280 Subpart C. This section now includes information on how Applicants will be notified if their application is selected for an award. This information has been streamlined and reduces burden. The insurance coverage in former section 4280.123(b) is no longer required. The matching funds information required in former section 4280.123(d) is now part of the application process under the new section 4280.131(a)(2)(O). The SAM registration information in former section 4280.123(e) is now under the new section 4280.131(a)(1)(C). The Power Purchase Agreement required under former section 4280.123(h) is now under the new section 4280.131(2)(C).

Sec. 4280.152 Notification of Unsuccessful Applicants (Formerly Sec. 4280.111(b))

The grant funding for Energy Audit and information formerly included in this section is moved to 7 CFR part 4280 Subpart C. This section now includes only information on how unsuccessful Applicants will be notified.

Sec. 4280.153 Award Approval (Formerly Sec. 4280.123(f) and (g))

The information formerly included in this section is moved to 7 CFR 4280 Subpart C. This section now includes information only on how an award is approved. This section clarifies that an award is approved only upon a fully executed Form RD 4280-2 and explains that the Agency will continue processing existing applications with a 1940-1 agreement signed by the Applicant and the Agency before the effective date of this regulation.

Sec. 4280.154-.159 [Reserved]

Sec. 4280.160 Reporting Requirements (Formerly Sec. 4280.124(i))

This section streamlines and updates the financial and performance reporting requirements. Semi-annual reports, a final Project development report, and Form RD 4280-3D “Annual Outcome Project Performance Certification” are no longer required because the Project must be completed at the time of application. Twelve (12) months of actual energy generation or energy savings data will be provided at time of application versus the two or three years of annual outcome reports currently required. An Equipment report is added to the section to clarify the requirements for Equipment reporting.

Sec. 4280.161 Monitoring Awards (Formerly Sec. 4280.124(h))

This section updates the description of how awards will be monitored. The language in this section has been streamlined because topics such as inspections, programmatic changes, prior approvals, disposition of property, financial management, audits, payment, monitoring, and close-out are addressed in 2 CFR 200 and supplemented by the Financial Assistance Agreement. Including more detailed language in this section would be duplicative.

Sec. 4280.162 Transfer of Obligations (Formerly Sec. 4280.124(c))

This new section addresses transfers of obligations, which was previously covered in Sec. 4280.124(c). The previous version of the regulation allowed an award or an obligation, to be transferred to a new entity, provided certain conditions were met. However, because the Projects must already be complete at the time of application, there is no reason for a transfer of obligation under this revision.

Appendix A to Subpart B of Part 4280--Technical Reports for Energy Efficiency Improvement (EEI) Projects

This appendix has been removed as specific technical questions will be incorporated into Sec. 4280.131. Also, Projects must be complete and operational prior to application filing thus reducing technical risk.

Appendix B to Subpart B of Part 4280--Technical Reports for Renewable Energy System (RES) Projects With Total Project Costs of Less Than $200,000, But More Than $80,000

This appendix has been removed as specific technical questions will be incorporated into Sec. 4280.131. Also, Projects must be complete and operational prior to application filing thus reducing technical risk.

Appendix C to Subpart B of Part 4280--Technical Reports for Renewable Energy System (RES) Projects With Total Project Costs of $200,000 and Greater

This appendix has been removed as specific technical questions will be incorporated into Sec. 4280.131. Also, Projects must be complete and operational prior to application filing thus reducing technical risk.

Appendix D to Subpart B of Part 4280--Contents of Feasibility Study

This appendix has been removed and Sec. Sec. 4280.131(b) Project Eligibility, technical sustainability, has been updated to reflect in detail the items required in a Feasibility study.

This subpart was created for the purpose of separating the program requirements for the Energy Audit and Renewable Energy Development Assistance Grants from the program requirements for the Renewable Energy Systems and Energy Efficiency Improvement Grants. Those requirements were formerly identified in Sec. Sec. 4280.149-.159 and are now located in the following sections. Applicant eligibility (formerly Sec. 4280.149) is located in section 4280.220. Project Eligibility and Ineligible Projects (formerly Sec. Sec. 4280.150 and .151) are located in section 4280.222. The maximum grant amount (formerly Sec. 4280.152(a) is located in section 4280.220. Eligible and ineligible Project Costs (formerly Sec. 4280.152(b) and (c)) are located in section 4280.225. Application requirements (formerly Sec. 4280.153) are located in section 4280.231. Evaluation and scoring of applications (formerly Sec. Sec. 4280.154 and .155) are located in section 4280.240. Award selection (formerly Sec. 4280.156) is located in 4280.250. Notification of successful Applicants and monitoring (formerly Sec. Sec. 4280.158 and .159) are located in sections 4280.251, 4280.253, and 4280.261. Sec. 4280.201 Purpose

This section was added to clearly state the purpose of the Energy Audit and Renewable Energy Development Assistance program. Sec. 4280.202 Organization of Subpart

This section was added to reflect the content in the sequence in which it occurs during the application, award, and post-award processes. Sec. 4280.203 Acronyms

This section was added to make it easier for readers to quickly identify frequently used acronyms. Sec. 4280.204 Definitions

This section was added to be consistent with the way 2 CFR part 200 defines terms. See also the definitions from 7 CFR 4280.104 to streamline this subpart and to ensure consistency with the Renewable Energy Systems and Energy Efficiency Improvements Grant Program.

Council was removed from 7 CFR 4280.104 because it is not being used in subpart B of this part. The definition was also and revised to be consistent with 16 U.S.C. 3451.

Institution of Higher Education (IHE) was removed from 7 CFR 4280.104 and revised to be consistent with 2 CFR 200.1.

Key personnel was added to support the section on conflict of interest in Sec. 4280.206 and to clarify Project eligibility requirements in Sec. 4280.222.

Nonprofit organization was added to be consistent with 2 CFR part 200.

Public power entity was removed from 7 CFR 4280.104 and revised to be consistent with 16 U.S.C. 824q(a)(4)

Renewable Energy development assistance was removed from 7 CFR 4280.104 and revised to clarify the types of assistance to be funded by the program, including site-specific Feasibility Studies.

Renewable Energy site assessment was removed from 7 CFR 4280.104 and revised to ensure inclusion of key areas to be assessed.

Ultimate beneficiary was added to support the section on conflict of interest in Sec. 4280.206 and to clarify Ultimate Beneficiary eligibility requirements in Sec. 4280.221. Sec. Sec. 4280.205 [Reserved] Sec. 4280.206 Conflict of interest (Formerly Sec. 4280.106)

This section is updated to clarify with program related examples which relationships and transactions are subject to the conflict of interest policy as well as to include requirements identified in 2 CFR parts 200 and 400. Examples of relationships and transactions that can involve a COI include, but are not limited, to the following.

(1) Relationships. For the purposes of this subpart, relationships among the following entities can involve a COI.

(i) Applicant. Applicant and its parent companies, affiliates, subsidiaries, employees, consultants, contractors, and Immediate Family members of any individual owners of the preceding entities;

(ii) Recipient. Recipient and its parent companies, affiliates, subsidiaries, employees, consultants, contractors, and Immediate Family members of any individual owners of the preceding entities;

(iii) Ultimate Beneficiary. Ultimate Beneficiary and its parent companies, affiliates, subsidiaries, employees, consultants, contractors, and Immediate Family members of any individual owners of the preceding entities;

(iv) End Users. End Users and their parent companies, affiliates, subsidiaries, employees, consultants, contractors, and Immediate Family members of any individual owners of the preceding entities;

(v) System installers. System installers and their parent companies, affiliates, subsidiaries, employees, consultants, contractors, and Immediate Family members of any individual owners of the preceding entities;

(vi) Service providers. Service providers, and their parent companies, affiliates, subsidiaries, employees, consultants, contractors, and Immediate Family members of any individual owners of the preceding entities;

(2) Transactions. For the purposes of this subpart, all transactions must be a transaction in which the involved parties act independently and have no relationship to each other such that the transaction allows the market to ensure both parties in the deal are acting in their own self-interest and are not subject to any pressure or duress from the other party. Transactions that can involve a COI include, but are not limited to:

(i) Advances and reimbursements of Federal Award funds;

(ii) Cost Sharing;

(iii) Procurement contracts;

(iv) Agreements between the Ultimate Beneficiary and another entity, including, but not limited to, Power Purchase Agreements, off- take agreements, and lease agreements;

(v) Financing and other Project investments;

(vi) Feasibility Studies; and

(vii) Grant writing. Sec. 4280.207 [Reserved] Sec. 4280.208 Compliance With Other Laws and Regulations.

This section is added to clarify all levels of regulations that are applicable to this program, including Federal, Departmental, and Agency levels. Sec. Sec. 4280.209-.219 [Reserved] Sec. 4280.220 Applicant Eligibility (Formerly Sec. 4280.149)

This section is updated to alert Applicants with any percentage of foreign investment or ownership that the Agency will evaluate the entity's eligibility based on applicable law. This change was implemented in alignment with Executive Order 14315, dated July 7, 2025, on “Ending Market Distorting Subsidies For Unreliable, Foreign Controlled Energy Sources”. We also revised the number of awards for which

an Applicant is only eligible from one for EA and one for REDA to one award per Federal Fiscal Year. This change allows funds to be distributed among more entities. Sec. 4280.221 Ultimate Beneficiary Eligibility

This section is added to clarify the eligibility requirements for Ultimate beneficiaries. Sec. 4280.222 Project Eligibility (Formerly Sec. Sec. 4280.150, .151, .152)

This section updates the Project eligibility information by providing clarity on Project eligibility. The Agency clarifies that unrecovered indirect costs cannot be used for Cost Sharing and conducting Feasibility Studies that are statewide or not site-specific is not an eligible Project. It also clarifies the Agency's policy on how it will handle unallowable costs in the proposed budget. Sec. Sec. 4280.223-.224 [Reserved] Sec. 4280.225 Use of Funds (Formerly Sec. 4280.152)

This section is revised to use the terms allowable and unallowable use of funds instead of eligible and ineligible Project Costs, to be consistent with terms used in 2 CFR 200. This section clarifies and expands the identification of allowable and unallowable uses of funds to address questions and concerns that have been identified in previous funding cycles. Unallowable uses include: promotional items, raffles, and more than 10 percent of Project Costs for outreach and marketing. Sec. Sec. Section 4280.226-.229 [Reserved] Sec. 4280.230 Notifications

This section is added to clarify the process that the Agency will use to notify the public about the amount of funding available, future requirements not addressed by the regulation, and other requirements that may be subject to change, based on the language in that section. Sec. 4280.231 Application requirements (Formerly Sec. 4280.153)

This section is updated to present the requirements in two distinct categories: Applicant eligibility and Project eligibility. Added requirements to explain how the Applicant meets one of the eligible entity types. Added requirement for written commitments from ultimate beneficiaries to support scoring edits. Provided greater detail regarding items to include in the budget. Requires submission of documents to evaluate quality of EA or REDA work products performed by Applicants for both eligibility and scoring purposes. Revised the number of applications that can be submitted to one application for either EA or REDA. Sec. 4280.232 [Reserved] Sec. 4280.233 Submission Requirements (Formerly Sec. 4280.153)

This section provides specific information on the submission period, the submission address, submission format and number of applications. This information was previously supplied in an annual notice because the former section in the regulation was vague. Additionally, all applications must be submitted via grants.gov. Sec. Sec. 4280.234-.239 [Reserved] Sec. 4280.240 Application Processing (Formerly Sec. Sec. 4280.154 and .155)

This section combines all of the application evaluation information in one section. It also adds completeness, eligibility evaluation and the Agency's risk evaluation process, which is required by 2 CFR 200.206.

The risk evaluation process will evaluate financial and performance risk. The Applicant must have current ratio of at least 1:1 and must not have more than 2 performance deficiencies in order to be eligible.

The merit evaluation criteria, also called scoring criteria, have been revised to better reflect the goals of the program, to remove duplication, and to streamline the evaluation process. The criteria are amended to focus on the quality of work products provided by Applicants and to provide clarity on how points will be awarded within each criteria. The Agency also removed points for award recognition because they did not add value to the merit evaluation process. An example of how the agency will round the percentage of cost share when scoring includes, 10.45 percent will be rounded to 10.5 percent, whereas 25.44 percent will be rounded to 25.4 percent. Sec. 4280.241 Application Withdrawal

This section was added to explain how an Applicant can withdraw an application from consideration. The language is consistent with other Agency programs. Sec. Sec. 4280.242-.249 [Reserved] Sec. 4280.250 Award Selection (Formerly Sec. 4280.156)

This section includes information on how the Agency will select applications for an award. We have streamlined the process to simplify it and reduce burden while preserving geographic distribution of awards. The Agency will select the top two highest scoring applications in each State, provided those applications meet or exceed the minimum score established in this section, and then fund applications in rank order until funds are expended or the minimum score is reached. Sec. 4280.251 Notification of Successful Applicants

This section clarifies how Applicants will be notified if their application is selected for an award. Sec. 4280.252 Notification of Unsuccessful Applicants (Formerly Sec. 4280.156(d)) This section clarifies how unsuccessful Applicants will be notified. Sec. 4280.253 Award Approval (Formerly Sec. Sec. 4280.123, .158, .159)

This section clarifies the award approval process. Sec. Sec. 4280.254-.259 [Reserved] Sec. 4280.260 Reporting Requirements (Formerly Sec. 4280.159)

This section includes information on required financial status and performance reports. The outcome Project performance report has been removed and replaced with a requirement for Recipients to submit all written work products to the Agency. The information on disbursements has been removed and will be incorporated into the Financial Assistance Agreement. Sec. 4280.261 Monitoring Awards (Formerly Sec. 4280.159)

This section clarifies who will monitor the awards and identifies potential reasons for suspension or termination of an award. Sec. Sec. 4280.262-.298 [Reserved] Sec. 4280.299 OMB Control Number

This section identifies the information collection approved to collect the reporting and recordkeeping requirements in this subpart, in accordance with the Paperwork Act of 1995.

Executive Order 12372--Intergovernmental Consultation

These grants are not subject to the provisions of Executive Order 12372. The projects will be installed prior to application and therefore consultation is not required.

Executive Order 12866 and 13563

This rule has been determined to be significant under section 3(f) of

Executive Order 12866 (Regulatory Planning and Review) and was reviewed by the Office of Management and Budget. Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, reducing costs, harmonizing rules, and promoting flexibility. In accordance with Executive Order 12866, an Economic Impact Analysis was completed, outlining the costs and benefits of implementing this program in rural America. The complete analysis is available from Regulations.gov by searching for the Docket number.

Executive Order 14192, Unleashing Prosperity Through Deregulation

Executive Order 14192, titled “Unleashing Prosperity Through Deregulation,” requires that an agency, unless prohibited by law, identify at least ten existing regulations to be repealed when the agency publicly proposes for notice and comment or otherwise promulgates a new regulation with total costs greater than zero. Executive Order 14192 further requires that new incremental costs associated with new regulations shall, to the extent permitted by law, be offset by the elimination of existing costs associated with at least ten prior regulations. This final rule is considered a deregulatory action under Executive Order 14192.

Executive Order 12988--Civil Justice Reform

This rule has been reviewed under Executive Order 12988. In accordance with this rule: (1) unless otherwise specifically provided, all State and local laws that conflict with this rule will be preempted; (2) no retroactive effect will be given to this rule except as specifically prescribed in the rule; and (3) administrative proceedings of the National Appeals Division of the Department of Agriculture (7 CFR part 11) must be exhausted before bringing suit in court that challenges action taken under this rule.

Executive Order 13132--Federalism

The policies contained in this rule do not have any substantial direct effect on States, on the relationship between the National Government and the States, or on the distribution of power and responsibilities among the various levels of government. Nor does this rule impose substantial direct compliance costs on State and Local Governments. Therefore, consultation with the States is not required.

Executive Order 13175--Consultation and Coordination With Indian Tribal Governments

This interim rule has been reviewed in accordance with the requirements of Executive Order 13175, Consultation and Coordination with Indian Tribal Governments. Executive Order 13175 requires Federal agencies to consult and coordinate with Tribes on a government-to- government basis on policies that have Tribal implications, including regulations, legislative comments or proposed legislation, and other policy statements or actions that have substantial direct effects on one or more Indian Tribes, on the relationship between the Federal government and Indian Tribes or on the distribution of power and responsibilities between the Federal government and Indian Tribes. Consultation is also required for any regulation that preempts Tribal law or that imposes substantial direct compliance costs on Indian Tribal governments and that is not required by statute.

The Agency has determined that this rule does not, to our knowledge, have Tribal implications that require Tribal consultation under Executive Order 13175. If a Tribe requests consultation, RBCS will work with the Office of Tribal Relations to ensure meaningful consultation is provided to help inform where changes, additions and modifications could be incorporated if they are not expressly mandated by Congress.

Assistance Listing Number (Formally Known as the Catalog of Federal Domestic Assistance)

The Assistance Listing Number assigned to the Rural Energy for America Program is 10.868. The Assistance Listings are available at https://sam.gov/.

The OMB regulation (5 CFR part 1320) implementing provisions of the Paperwork Reduction Act of 1995 (Pub. L. 104-13) requires that interested members of the public and affected agencies have an opportunity to comment on information collection and recordkeeping activities (see 5 CFR 1320.8(d)). This notice identifies an information collection that the Agency is submitting to OMB for extension.

Comments are invited on (a) Whether the proposed collection of information is necessary for the proper performance of the functions of the Agency, including whether the information will have practical utility; (b) the accuracy of the Agency's 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 submitted electronically by the Federal eRulemaking Portal, https://www.regulations.gov/. In the “Search for dockets and documents on agency actions” box enter the Docket No. RBS-26-Business- 0529 and click the “Search” button. From the search results, click on or locate the document title: “Notice of Extension of a Currently Approved Information Collection” and select the “Comment” button. Before inputting comments, commenters may review the “Commenter's Checklist” (optional). To submit a comment: Insert comments under the “Comment” title, click “Browse” to attach files (if available), input email address, select box to opt to receive email confirmation of submission and tracking (optional), select the box “I'm not a robot,” and then select “Submit Comment.” 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. All comments will be available for public inspection online at the Federal eRulemaking Portal (www.regulations.gov).

A federal agency may not conduct or sponsor, and a person is not required to respond to, nor shall a person be subject to a penalty for failure to comply with a collection of information subject to the requirements of the Paperwork Reduction Act unless that collection of information displays a currently valid OMB Control Number. Data furnished by the applicants will be used to determine eligibility for program benefits. Furnishing the data is voluntary; however, failure to provide data could result in program benefits being withheld or denied.

Title: Rural Energy for America (REAP) program.

OMB Control Number: 0570-0067.

Type of Request: Revision of a currently approved information collection.

Abstract: The primary purpose of REAP is to provide guaranteed loan financing and grant funding to agricultural producers and rural small businesses for renewable energy systems (RES) or to make energy efficiency improvements (EEI). RES and EEI projects will be scored and awarded in accordance with 7 CFR 4280.140. The REAP program also offers grant funding to assist agricultural producers and rural small businesses to conduct energy audits (EA) and provide recommendations and information on renewable energy development assistance (REDA). EA and REDA projects will be scored and awarded in accordance with 7 CFR 4280.240.

Estimate of Burden: Public reporting burden for this collection of information is estimated to average 1.34 hours per response.

Respondents: Nonprofit corporations and institutions of higher education.

Estimated Number of Respondents: 2,977.

Estimated Number of Responses per Respondent: 37.64.

Estimated Number of Responses: 112,073.

Estimated Total Annual Burden on Respondents: 150,883 hours.

Copies of this information collection can be obtained from Kimble Brown, RD Innovation Center--Regulations Management Division, Telephone: 202-720-6780, email: [email protected].

All responses to this notice will be summarized and included in the request for OMB approval. All comments will also become a matter of public record.

In accordance with Federal civil rights laws and 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, 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.

Persons with disabilities who require alternative means of communication to obtain program information (e.g., Braille, large print, audiotape, American Sign Language, etc.) should contact the State or local Agency that administers the program or contact USDA through the Telecommunications Relay Service at 711 (voice and TTY). Program information may be made available in languages other than English.

To file a program discrimination complaint, a complainant should complete a Form AD-3027, USDA Program Discrimination Complaint Form, which can be obtained online at https://www.usda.gov/sites/default/files/documents/ad-3027.pdf and at any USDA office or write a letter addressed to USDA and provide in the letter all of the information requested in the form. To request a copy of the complaint form, call (866) 632-9992. Submit your completed form or letter to USDA by:

a. Mail: U.S. Department of Agriculture, Office of the Assistant Secretary for Civil Rights, 1400 Independence Avenue SW, Mail Stop 9410, Washington, DC 20250-9410; or

b. Fax: (202) 690-7442; or

c. Email: [email protected].

USDA is an equal opportunity provider, employer, and lender.