The USDA Rural Business-Cooperative Service (the Agency) is issuing a second Notice of Solicitation of Applications (Notice) under the Rural Energy for America Program (REAP) as referenced in the notice that was published in the Federal Register on December 16, 2022. This second notice announces the availability of additional Inflation Reduction Act (IRA) funds across six quarterly cycles to be obligated by September 30, 2024. This Notice also announces the types of projects that qualify for a federal grant share not to exceed 50 percent of the project cost, a set-aside for underutilized renewable energy technologies, as well as scoring revisions to support Administration priorities.
The Agency provides grants, guaranteed loans, and combined grant and guaranteed loan combinations thru the REAP program to help eligible applicants reduce energy costs and consumption and help meet the Nation’s critical energy needs. Applications for REAP may be submitted at any time throughout the year.
Rural Development Key Priorities: The Agency encourages applicants to consider projects that will advance the following key priorities below:
- Assisting rural communities to recover economically through more and better market opportunities and through improved infrastructure
- Ensuring all rural residents have equitable access to RD programs and benefits from RD-funded projects
- Reducing climate pollution and increasing resilience to the impacts of climate change through economic support to rural communities
- Agricultural Producers
- Rural Small Businesses
Combined loan guarantee and grant applications- 25% matching fund (cost-sharing) requirement; IRA grant-only applications- 50% matching funds (cost-sharing); Non-IRA grant funds – 75% other fund sources
FUNDING AVAILABLE AND APPLICATION WINDOW:
FUNDING AVAILABILITY: $1.055 billion in Inflation Reduction Act funds
MAXIMUM AWARD AMOUNT: Loan Guarantee – $25 million; IRA Grant- $1 million; Non-IRA Grant-$500,000
APPLICATION DEADLINE: Applications are received year-round