Empowering Rural America (New ERA) Program - FY 2023
| Agency: | U.S. Department of Agriculture |
|---|---|
| CFDA: | 10.758 |
| Federal FON: | RUS-NEWERA-2023 |
| Office: | Rural Development (RD) Rural Utilities Service (RUS) |
| Multipart Grant: | No |
| Next Due: | 09/15/2023 (Letter of Interest) |
|---|---|
| Solicitation Date: | 05/16/2023 |
| Match Required: | Yes |
| Match Type: | Cash |
| Actual Funds: | $9,700,000,000 (Confirmed) |
Summary:
The purpose of this program is to provide financial assistance to rural electric cooperatives to achieve the greatest reduction in greenhouse gas (GHG) emissions through the cooperatives' voluntary transformation of rural electric systems in a way that promotes resiliency and reliability of rural electric systems and affordability for their members. Energy produced through this program will be clean, affordable, reliable, and owned by the people who live in rural American, thereby allowing for a new era in rural communities.
Eligible projects include a portfolio of actions that will result in the reduction of GHG emissions and be consistent with long-term resiliency, reliability, and affordability of rural electric systems. Such actions may include:
- The purchase or construction of:
- Renewable energy
- Renewable energy systems
- Zero-emission systems
- Carbon capture and storage systems
- Activities that will enable the deployment of the aforementioned systems and/or improve energy efficiency and strategies to support these goals, such as:
- Grid-edge, microgrid solutions, and other distributed energy strategies
- Energy storage systems in support of GHG emission reductions or renewable energy systems
- Software and hardware to enable the integration and/or the use of additions and upgrades
- Modifying or refinancing existing loans from RUS or refinancing non-RUS loans for retiring non-renewable energy assets on an accelerated basis with savings reinvested into clean energy investments
- Entering a long-term agreement to purchase power from a renewable energy system or zero-emissions system
- Upgrade of existing renewable energy systems or zero-emission systems or related transmission facilities that increase the operating energy efficiency of these systems
- Transmission improvements that can significantly enable renewable energy systems and zero-emissions systems, reduce congestion, and improve the efficiency of the system
- Activities that will significantly reduce energy demand and GHG emissions
Award funds may be used to pay for the following costs:
- To fund the construction, improvement, or purchase of facilities, including buildings and land required to construct the facilities being financed with the award and other allowable costs and expenses listed in 2 CFR part 200, subpart E
- To fund the construction of new linear facilities or the upgrade of existing linear facilities that are necessary to operate any new generation facility, including transmission or distribution facilities that are needed to export the power
- To fund reasonable pre-award expenses as provided in 2 CFR part 200, subpart E
- To fund interest incurred during construction
- To refinance or modify existing debt
Optional webinars, office hours, and general assistant and consultation are scheduled for this program. Refer to the Application section for additional information.
Last Updated: April 14, 2025
Eligibility Notes:
Eligible applicants are:
- Electric cooperatives described in section 501(c)(12) or 1381(a)(2) of the Internal Revenue Code of 1986 that are currently or have been in the past a Rural Utilities Service (RUS) electric loan borrower pursuant to the Rural Electrification (RE) Act
- Electric cooperatives serving predominantly rural areas
- Wholly or jointly owned subsidiaries of such electric cooperatives listed above
For the purposes of this program, the term predominantly rural means a service territory that must include at least 50 percent rural areas, as defined on pages 3-4 of the NOFA file.
To create opportunities for rural electric cooperatives of all sizes, and to ensure cooperatives compete only against their peers, applicants will be separated into the following three categories:
- Category I: total utility plan (TUP) value equal to or more than $500 million
- Category II: TUP value more than $200 million and less than $500 million
- Category III: TUP value equal to or less than $200 million
Electricity generated from or transmitted by facilities financed with program funds must be delivered and distributed to consumers located in eligible service areas. The facilities to be financed with an award to an applicant that is not a current or former RUS or Rural Electrification Administration (REA) borrower must provide electric service to consumers located in those areas that are considered predominantly rural. The service areas of any existing or former RUS and former REA electric loan borrowers under the RE Act are deemed to be 100 percent rural and are therefore eligible service areas.
For each project that will be sited on tribal lands where a federally recognized tribe has regulatory authority and for each project whose service area includes tribal lands where a federally recognized tribe has regulatory authority, certification from the appropriate tribal official that it consents to or has no objection to the project is required.
The funding agency will accept only one application per applicant whether individually or as part of a consolidated application.
Applicants that have submitted proposals under the funding agency's Powering Affordable Clean Energy (PACE) Program, known in eCivis Grants Network as US18196, may not include the same proposal or project for funding under this program. The funding agency will consider separate, single proposals under this program and the PACE Program from the same applicant provided the proposed actions are separate and distinct; however, projects that receive support from the PACE Program for construction will not be eligible for support for the direct purchase of power produced by the supported project.
Previous award recipients include:
- Georgia Transmission Corporation
- Nebraska Electric G&T
- Yampa Valley Electric Association
- CORE Electric Cooperative
- San Miguel Electric Cooperative, Inc.
Refer to the Award file for additional information on previous award recipients.
Eligible Applicants:
ConsortiaNon Profits
Application Notes:
Mandatory letters of interest (LOIs) will be accepted beginning at 11:59 p.m. ET on July 31, 2023, and must be received by 11:59 p.m. ET on August 31, 2023.
The due date for the LOI has been extended to 11:59 p.m. on September 15, 2023. Additional information is included in the DueDateExt file.
LOIs must be submitted online at www.ecivis.com/grants.gov. Hard-copy, fax, or email submissions will not be accepted.
LOIs must include:
- SF 424
- Applicant profile and point of contact information
- Statement as to whether the subsequent application will provide a request for a project award or system award
- Identification of the value of the applicant's net assets and specification if the applicant has ever been placed in receivership, court-mandated liquidation, under a workout agreement, or has declared bankruptcy or has had a decree or order issued for relief in any bankruptcy, insolvency, or other similar action
- Identification of the type and amount of financial assistance that will be sought in the application if invited to proceed
- Disclosure as to whether any foreign entity or foreign person has an ownership interest, voting interest, management rights, or an equity interest in the applicant or any rights in the proposed project(s)
- Estimation of the proposed greenhouse gas (GHG) reduction from the portfolio of actions
- Statement of the value of the applicant's TUP as of December 31, 2022
- Technical description of the project(s) the applicant intends to finance if it receives an award
- Timeline
The following are required in order to submit an application:
- Unique Entity Identifier (UEI) number
- SAM (System for Award Management) registration
Applicants may obtain a UEI number and verify or renew SAM registration status at www.ecivis.com/sam.
Optional webinars will be held for this program as follows:
May 17, 2023
2:30 p.m. - 3:30 p.m. ET
Registration: www.zoomgov.com
May 22, 2023
2:30 p.m. - 4:30 p.m. ET
Registration: www.zoomgov.com
May 24, 2023
2:30 p.m. - 4:30 p.m. ET
Registration: www.zoomgov.com
May 31, 2023
2:30 p.m. - 4:30 p.m. ET
Registration: www.zoomgov.com
June 1, 2023
2:30 p.m. - 4:30 p.m. ET
Registration: www.zoomgov.com
Additional optional webinars area scheduled for this program as follows:
Program and Greenhouse Gas Calculator Overview:
June 8, 2023
2:00 p.m. ET
Registration: www.rd.usda.gov
How to Submit Letters of Interest:
July 13, 2023
1:00 p.m. ET
Registration: www.rd.usda.gov
How to Submit Letters of Interest:
July 24, 2023
1:00 p.m. ET
Registration: www.zoomgov.com
Application Information:
August 15, 2023
2:00 p.m. ET
Registration: www.rd.usda.gov
Application Information:
August 29, 2023
2:00 p.m. ET
Registration: www.zoomgov.com
Application Information:
September 20, 2023
2:00 p.m. ET
Registration: www.zoomgov.com
Recordings of previously held webinars can be found online at www.rd.usda.gov.
Optional office hours are also scheduled for this program as follows:
June 22, 2023
2:00 p.m. ET
Registration: www.zoomgov.com
July 6, 2023
2:00 p.m. ET
Registration: www.zoomgov.com
In addition, applicants may request optional general assistance and consultation from the appropriate funding agency general field representative prior to September 8, 2023. Contact information for funding agency general field representatives can be found online at www.rd.usda.gov/contact-us/electric-gfr.
Applicants that submit a successful LOI will receive an invitation to proceed and will have 60 days to complete and submit an application beginning from the date the invitation to proceed is emailed to the applicant.
LOIs will be evaluated according to the following criteria:
- Reliability and resiliency
- Affordability
- Geographic diversity
- Resources
- Substantially underserved trust area (SUTA) considerations
- Other funds
- Financial feasibility
- Annual tons of carbon dioxide equivalent (CO2e) reduced (30 points)
- Annual tons of CO2e avoided (10 points)
- Percentage difference in renewable or zero-emission energy int he energy mix (10 points)
- Percentage decrease in the carbon intensity of the energy mix (10 points)
Refer to the NOFA and LOIGuide files for additional application information.
| Match Required: | Yes |
|---|---|
| Match Type: | Cash |
| Actual Funds: | $9,700,000,000 (Confirmed) |
Match Notes:
For project loans, the funding agency will finance up to 75 percent of the total capitalized cost of the project in the loan component of a project award. The award recipient will be required to initially provide and maintain for the term of the project award at least 25 percent of the project's total capitalized cost in the form of cash or an equity investment. Where financially feasible, the funding agency may allow an award recipient to utilize the grant component of the award and/or any applicable tax credit that it expects to receive toward the 25 percent equity requirement for a project award. Such financial equity may not come from the proceeds of any loan from any creditor, including insiders of the award recipient.
Applicants that apply for a grant only must provide at least 75 percent of the total eligible award costs.
Funding Notes:
A total of $9.7 billion is available to support awards through this program.
Of the total funding available, the funding agency expects to utilize at least 60 percent for Category I applicants, up to 20 percent for Category II applicants, and up to 20 percent for Category III applicants. No one applicant may receive more than 10 percent of the total funding available, which equals $970 million.
Applicants are invited to propose assistance from any one of the following financial assistance products or a combination of such products:
- Loan only: An applicant may request an award to finance any project or combination of projects with a loan-only award. The interest rate for a loan-only award may be set at a fixed percent at 2 percent, zero percent, or at a rate tied to the federal government's cost of money.
- Loan and grant combination: An applicant may request to finance any project or projects in its application with a grant or grant/loan combination where the grant amount equals no more than 25 percent of the eligible award costs. The interest rate and amortization for the loan component of the award will be set as described above. Applicants may propose substituting cash for the loan component, or any portion of the loan component, at the time of application.
- Grant only: An applicant may request an award to finance any project or combination of projects in its application with a 100 percent grant. A 100 percent grant may finance no more than 25 percent of the total eligible project costs.
- Loan refinancing or loan modification: An applicant may request to modify existing guaranteed debt from the funding agency, or refinance debt from a third party, but only as such modification or refinancing related to a stranded asset. The applicant must demonstrate that it will utilize the benefits of such refinancing or modification to pay for or otherwise finance eligible activities. The interest rate on any new loan relating to a stranded asset loan refinancing or loan modification will be set as described above.
Awards may be issued as a project award or a system award, as detailed on pages 3-5 of the NOFA file. Applications that propose achieving the greatest reductions in greenhouse gas (GHG) emissions will receive the best financial offering in terms of grant amounts and interest rates.
Except as related to a stranded asset loan, all award funds will be disbursed as a reimbursement for eligible award costs. Unless the funding agency, in its discretion, advances award funds to an award recipient with a system award, the funding agency will only advance award proceeds after commercial operation of the project is achieved and subsequent successful testing of the project is conducted to the satisfaction of the funding agency.
Awards are expected to be issued beginning on March 1, 2024.
The project period will last five years from the date of environmental clearance, and will end no later than September 30, 2031. All funds must be fully disbursed on or before September 30, 2031.
Except for awards that include a loan refinancing or loan modification, awards will be for a term not to exceed the lesser of the expected useful life of the project; the term of the power purchase agreement (PPA), the term of the lease for the land that the project will occupy, the expiration dates of power supply arrangements between the award recipient and its members, or 35 years. The term of an award that includes a loan refinancing or loan modification will be determined on a case-by-case basis based on the financial feasibility of the award.
Funds may not be used for:
- Expenses incurred in developing letters of interest (LOIs) and applications
- Operating expenses of the award recipient, unless specifically outlined in the applicant's award agreement
- Costs incurred prior to the date on which the application was submitted, other than eligible pre-award expenses
- Acquisition of an affiliate, or the purchase or acquisition of any facilities or equipment of an affiliate
- Any expense that is not allowed pursuant to 2 CFR part 200, subpart E
- Any expense that violates the terms of an applicant's existing wholesale power contract
Refer to page 10 of the NOFA file for additional information regarding unallowable costs.
In December 2024, more than $4.37 billion was issued through this program. In September 2024, more than $7.3 billion was distributed via 16 awards. Refer to the Award file for details.
Contacts:
Christopher McLean
Assistant Administrator
(202) 690-4492
SM.RD.RUS.IRA.Questions@usda.gov
Agency Address
U.S. Department of Agriculture
1400 Independence Avenue, SW
Washington, D.C. 20250
Contact Notes:
Questions should be directed to Christopher McLean.
Letters of interest (LOIs) must be submitted online at www.ecivis.com/grants.gov.
The agency address provided is for reference purposes only.
Files:
NOFA File: US18195_NOFA_FY2023.pdf (283.5 Kb)Other Pre-Award File: US18195_Overview_FY2023.pdf (102.1 Kb)
Other Pre-Award File: US18195_FactSheet_FY2023.pdf (375.4 Kb)
Other Pre-Award File: US18195_AppTemplate_FY2023.xlsx (42.8 Kb)
Other Pre-Award File: US18195_SampleApp_FY2023.zip (152.3 Kb)
Other Pre-Award File: US18195_Amendment_FY2023.pdf (184.1 Kb)
Other Pre-Award File: US18195_Webinars_FY2023.pdf (61.0 Kb)
Other Pre-Award File: US18195_Webinars2_FY2023.pdf (107.2 Kb)
Other Pre-Award File: US18195_FAQ_FY2023.pdf (476.8 Kb)
Other Pre-Award File: US18195_DueDateExt_FY2023.pdf (90.7 Kb)
Other Pre-Award File: US18195_LOIUpdate_FY2023.pdf (186.5 Kb)
Other Pre-Award File: US18195_LOIGuide_FY2023.pdf (507.3 Kb)
Other Pre-Award File: US18195_LOITemplate_FY2023.pdf (150.0 Kb)
Other Pre-Award File: US18195_GHGCalculator_FY2023.xlsx (43.8 Kb)
Award File: US18195_Award_FY2023.pdf (264.1 Kb)
File Notes:
The NOFA file contains the full solicitation for this program. The Overview file contains general program information, including information regarding optional webinars scheduled for this program. The FactSheet file contains a fact sheet for this program. The AppTemplate file contains a sample of the online achievable reduction tool (ART) and should be used for reference purposes only. The SampleApp folder contains samples of completed ARTs and should be used for reference purposes only. The Amendment file contains an amendment to the solicitation for this program. The Webinars and Webinars2 files contain information regarding optional webinars and office hours scheduled for this program. The FAQ file contains a list of answers to frequently asked questions regarding this program. The DueDateExt file contains the updated due date for the letter of interest (LOI). The LOIUpdate file contains updated information on LOI submission, as well as optional general assistance and consultation with the funding agency. The LOIGuide file contains detailed LOI instructions. The LOITemplate file contains a sample of the online LOI and should be used for reference purposes only. The GHGCalculator file contains a revised greenhouse gas (GHG) calculator to be used during LOI preparation. The Award file contains information on previous award recipients.
April 14, 2025
Information regarding awards through this program has been released and appended to the Award file. A sample of award recipients has been added to the Eligibility section, and a brief summary of the awards has been added to the Financial section.
October 4, 2024
Information regarding awards through this program has been released and attached as the Award file. A sample of award recipients has been added to the Eligibility section, and a brief summary of the awards has been added to the Financial section.
August 30, 2023
An updated greenhouse gas (GHG) calculator, to be used during letter of interest (LOI) preparation, has been released and attached as the GHGCalculator file.
August 4, 2023
Detailed letter of interest (LOI) instructions, a sample of the online LOI, and a greenhouse gas (GHG) calculator to be used during LOI preparation have been released and attached as the LOIGuide, LOITemplate, and GHGCalculator files, respectively. The Application section has been updated accordingly.
July 27, 2023
Updated information regarding letter of interest (LOI) submission, as well as optional general assistance and consultation with the funding agency, has been released and attached as the LOIUpdatefile. The Application and Contact sections have been updated accordingly.
July 26, 2023
An announcement concerning the changing of the due date for the letter of interest (LOI) has been released and attached as the DueDateExt file. In addition, an updated list of answers to frequently asked questions regarding this program has been released and attached as the FAQ file. The Application section has been updated accordingly.
June 28, 2023
Information regarding additional webinars that are scheduled for this program as well as the changing of the registration link for the August 29, 2023, application information webinar has been released and attached as the Webinars2 file. The Application section has been updated accordingly.
June 16, 2023
An amendment to the solicitation for this program has been released and attached as the Amendment file.
June 7, 2023
Recordings of webinars for this program have been released, and a link to the presentations is available in the Application section. Information on additional webinars and office hours for this program has also been released and attached as the Webinars file. The Application section has been updated accordingly
May 30, 2023
A sample of the online achievable reduction tool (ART) has been released and attached as the AppTemplate file. In addition, samples of completed ARTs have been released and attached within the SampleApp folder.
Grant Keywords
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Community DevelopmentEnergy
Environment/Natural Resources
Rural Issues