7 CFR 4280.131: Application requirements.

This section identifies the items required for a complete application. All applications must include the following items, with the exception of the information in paragraph (a)(14) of this section, which is optional.

(a) Applicant eligibility. The following requirements support Applicant eligibility.

(1) Applicant's legal name. The Applicant must provide its legal name. This name must match what is entered in SAM.gov and what is on the Certificate of Good Standing.

(2) Applicant's address. The Applicant must provide its primary address. This address must match what is entered in SAM.gov.

(3) Identification numbers. The Applicant must provide its Unique Entity Identifier from its SAM.gov registration and Social Security number (SSN) or Taxpayer Identification Number (TIN) in order for the Agency to assess eligibility.

(4) Incorporation date. The Applicant must provide the date it was incorporated.

(5) Certificate of Good Standing. The Applicant must provide a current Certificate of Good Standing from the State in which the Applicant is incorporated or registered, or from the Bureau of Indian Affairs or Tribe, as applicable

(6) Entity bylaws. The Applicant must provide its bylaws or operating agreements that show its legal authority to apply for and carry out the Project.

(7) Principals. The Applicant must provide the names and SSN or TIN of the Principals for this Federal Award. The identification numbers will be used to assess eligibility for the Federal Award.

(8) Applicant entity type. The Applicant must indicate whether it is applying as an Agricultural Producer or a Rural Small Business.

(i) Agricultural Producer. If the Applicant is applying as an Agricultural Producer, it must provide all of the following information:

(A) Owner names. The Applicant must provide the exact legal name(s) of all owners in the organization.

(B) Percentage of ownership. The Applicant must provide the percentage of ownership for each owner.

(C) Participation in operations. The Applicant must indicate whether the owners participate in the day-to-day labor, management, and/or field operations of the Applicant.

(D) Agricultural Commodity. The Applicant must identify the primary Agricultural Commodity produced or that the Applicant has the legal right to harvest.

(E) Annual income. The Applicant must indicate the total annual income of the majority-owner and the amount of annual income derived by that majority-owner from the Applicant's operations from the most recent tax year.

(ii) Rural Small Business. If the Applicant is applying as a Rural Small Business, it must indicate whether the Applicant has been designated by the Small Business Administration as a Small Business in SAM.gov. Additionally, it must provide all of the following information:

(A) Owner names. The Applicant must provide the exact legal name(s) of all owners in the organization.

(B) Percentage of ownership. The Applicant must provide the percentage of ownership for each owner.

(9) Financial statements. Applicants must provide financial statements as described below.

(i) All applications. The Applicant must provide the following business-level financial statements: an income statement, balance sheet, and statement of cash flows, including all revenue streams from the Project, debt-service of the Project, annual operations and maintenance, investments, and incentives from the Applicant's most recent completed fiscal year prior to the date of application. Project-level financial statements will not be accepted.

(ii) Project Cost $200,000 and greater. In addition to the financial statements required in the paragraph above, the Applicants with Projects that have Project Cost of $200,000 or greater must provide two years of pro forma financial statements for the Project, including income statements, balance sheets, statements of cash flows, and assumptions.

(10) Summary of REAP awards. The Applicant must describe any current or previous awards received through the REAP program, including both grants and guaranteed loans. The description must include the Project Period, the amount, and a summary of the Project.

(11) Business operations. The Applicant must describe its business, including the time period that it has been in operation and earning revenue, the type of products or services provided, the number of employees, who the customers are, and the sources of revenue from its business operations, including if the operations include gambling, sexual activities, professional or amateur racing of animals, or illegal activities. Note that each employee is counted as one, regardless of their status as full-time, part-time, temporary, or seasonal. To calculate the number for the application, use the average number of employees over the most recent 12 consecutive months.

(12) Foreign ownership. The Applicant must identify any foreign ownership, including the name(s) of the foreign owners and the percentage of ownership.

(13) Conflict of interest. The Applicant must identify whether or not the Applicant or its individual owners has a known relationship or association with an Agency or Rural Development employee. If there is a known relationship, the Applicant must identify each Agency or Rural Development employee with whom the Applicant has a known relationship. The Applicant must also certify that there is no conflict of interest, as defined in § 4280.106.

(b) Project eligibility. The following requirements support Project eligibility.

(1) Project description. The Applicant must provide a brief description of the Project.

(2) Type of Project. The Applicant must indicate whether the Project is an RES or an EEI Project and the purpose under § 4280.122(a)(1). If the Project is an RES, the Applicant must indicate whether it is considered to be an energy replacement or energy generation Project (see the definition of Renewable Energy System in this subpart for more information).

(3) Technical sustainability. For EEI Projects, the Applicant must provide an Energy Assessment if the Project Cost is $80,000 or less; otherwise it must provide an Energy Audit. For RES Projects, the Applicant must provide a Resource Assessment, or the Applicant can provide a Feasibility Study in lieu of a Resource Assessment. In addition, the Applicant must provide the information from the Energy Assessment, Energy Audit, Resource Assessment, or Feasibility Study, as applicable, to allow the Agency to assess the technical sustainability of the Project.

(4) Agreements. For Projects with a Project Cost of more than $80,000, the Applicant must submit copies of all agreements related to the Project, including, but not limited to, Power Purchase Agreements, Interconnection Agreements, lease agreements, feedstock agreements, off-take agreements, End User agreements, financing agreements, and operations and maintenance agreements.

(5) Country of origin. For solar and Wind Energy Projects, the Applicant must identify the country of origin for all system components.

(6) Commercially Available technology. The Applicant must describe how the Project meets the definition of Commercially Available technology, as provided below.

(i) Operating history. The Applicant must describe the operating history of the RES or EEI to demonstrate that the RES or EEI is proven and reliable. The operating history must include names or examples of other RES or EEI installed using the same type of RES or EEI technology used in the Applicant's Project, including feedstock(s) and integrated processes, rather than the specific operating history for the Applicant's RES or EEI.

(ii) Performance data. The Applicant must provide performance data for at least one year that is specific to the operation and use of the RES or EEI. This data must be from a system other than the Applicant's.

(iii) Feedstock. If applicable, the Applicant must identify the specific feedstock used.

(iv) Process to produce or save energy. The Applicant must describe the specific process used to produce or save energy.

(v) Design and installation procedures. The Applicant must describe how the RES or EEI is based on established design and installation procedures.

(vi) Replicability. The Applicant must describe how the RES or EEI is replicable.

(vii) Service providers. The Applicant must describe how the RES or EEI has professional service providers, trades, large construction Equipment providers, and laborers who are familiar with installation procedures and practices.

(viii) Equipment availability. The Applicant must describe how the RES or EEI has proprietary and balance of system Equipment and spare parts that are readily available.

(ix) Service availability. The Applicant must describe how the RES or EEI has service that is readily available to properly maintain and operate the system.

(x) Warranty. The Applicant must describe the warranty for major parts and labor for the RES or EEI that is valid in the United States.

(7) Key Service Providers. The Applicant must provide the following information for all Key Service Providers.

(i) Name;

(ii) Type of service provided (for example, installation);

(iii) License type and number for the State in which the installation occurred;

(iv) Description of qualifications, including how many similar systems have been installed;

(v) Description of how the Key Service Provider was selected (for example, how many bids were received and how was the decision made to select the Key Service Provider); and

(vi) A certification that there is no conflict of interest between the Key Service Provider and the Applicant and between the Key Service Provider and any other Key Service Provider working on the Project.

(8) Procurement contracts. The Applicant must provide a description for each procurement contract utilized for the Project. The description must include—

(i) The name of contractor;

(ii) The amount of contract;

(iii) A description of work performed under the contract; and

(iv) A description of how the contractor was selected.

(9) Dedicated meter. The Applicant must certify that the Project uses a dedicated meter.

(10) Completion certificate. The Applicant must certify that the design, engineering, testing, and monitoring is sufficient for the Project's intended purpose. For Projects with a Project Cost of $200,000 or more, the Agency requires a completion certificate completed by a professional engineer licensed in the State where the Project was completed.

(11) Project location. The Applicant must provide the address for the Project location.

(12) Cropland usage. The Applicant must indicate if Cropland was used for the Project, and if so, how many acres.

(13) Size of RES. The Applicant must provide the Rated System Size and Annual Energy Production of the RES.

(14) Project Period. The Applicant must provide the dates when costs were incurred for the Project, i.e. the Project Period. As a reminder, the Project Period must end between 12 and 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. For example, if the application is submitted on August 31, 2027, then the Project Period must end no later than August 31, 2026. With an ending date of August 31, 2026, the Project Period must start no earlier than September 1, 2024.

(15) Budget. The Applicant must provide an itemized budget that includes all Cost Sharing provided, Program Income, Project Cost, and itemized Project expenses. The budget must include a listing of each cost, with a description, expense category, amount, date incurred, date paid, and whether the expense was paid with Cost Sharing or Federal funds.

(16) Cost Sharing verification. The Applicant must provide verification of Cost Sharing if the Cost Share was provided by a third party. The Applicant must submit a commitment letter signed by an authorized official of the third party. The letter must be specific to the project, identify the dollar amount, and identify any applicable rates and terms.

(17) Simple Payback. The Applicant must provide the information for the Simple Payback calculation, including the following data:

(i) Energy amount. For RES projects, the Applicant must provide the historical energy use in terms of quantity and unit of measurement for the 12 consecutive months pre-installation and 12 months of energy produced post-installation of the RES. For EEI projects, the Applicant must submit the pre-installation energy consumption of the existing building or system and the post-installation energy consumption of the improved building or system as documented in the Energy Assessment or Energy Audit.

(ii) Energy value. For RES Projects, the Applicant must submit the dollar value of the energy produced on a per unit basis for the 12 months pre-installation and for the 12 months post-installation. For the average dollar value, the following charges should be excluded: fixed meter charge, demand charges, subsidy charges, and sales tax. For EEI Projects, the Applicant must submit the dollar value of the energy saved based on the Energy Audit, as updated 12 months post-installation. For both RES and EEI Project Off-Grid Systems (regardless of historical energy source), the Applicant must provide a written statement from the utility company that services the Project location that identifies the average price per kW hour for the 12 month period prior to installation.

(18) Ownership of the RES or EEI. The Applicant must confirm that it owns the RES or EEI that is the subject of the application at the time of application. The Applicant must confirm that it intends to maintain the ownership of the RES or EEI until the final disbursement for the Federal Award is made. Note that the Applicant will be required to provide copies of all invoices and payments if an award is made, and these documents must all demonstrate that the Applicant owns the RES or EEI.

(19) Ownership of the Project site. The Applicant must confirm that it owns or controls (through a lease or in the case of tribal trust land through beneficial interest)) the site where the RES or EEI is installed for at least 12 months prior to the Project Period for the Project through the time of application. The Applicant must also confirm that it intends to maintain the ownership or control until the final disbursement for the Federal Award is made. If the site is owned by the Applicant, the Applicant must provide a copy of the deed or tax assessment for the Project site. If the site is controlled through a lease agreement or tribal trust land through beneficial interest, a copy of the executed lease or deed must be provided at the time of application. In particular, the lease agreement must include the following information:

(i) Parties to the lease, where one party is the Applicant;

(ii) Start and end dates of the lease term; and

(iii) Legal description of the Project location that matches the site footprint of the RES or EEI.

(20) Architectural barriers. The Applicant must certify that all facilities intended for or accessible to the public or in which physically handicapped individuals may be employed are in compliance with the Architectural Barriers Act of 1968 (42 U.S.C. 4151 et seq.) as implemented by 41 CFR 101-196, section 504 of the Rehabilitation Act of 1973 (42 U.S.C. 1474 et seq.) as implemented by 7 CFR parts 15 and 15b, and Titles II and III of the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.).

(21) Seismic safety. The Applicant must certify that all new structures, fully or partially enclosed, used or intended for sheltering individuals or property were designed with appropriate seismic safety provisions in compliance with the Earthquake Hazards Reduction Act of 1977 (42 U.S.C. 7701 et seq.), and Executive Order 13717, Establishing a Federal Earthquake Risk Management Standard.

(22) Applicable laws, regulations, agreements, permits, codes, and standards. The Applicant must certify that the Project was completed in accordance with applicable laws, regulations, agreements, permits, codes, and standards.