Powering Affordable Clean Energy (PACE) Program
Program Funding
Annual program obligations reported to SAM.gov.
Funded Projects
Examples of what this program has supported.
Program Objective
The Powering Affordable Clean Energy (PACE) Program is intended to provide loans to qualified applicants to finance power generation projects for Renewable Energy Resource systems or Energy Storage Systems that support Renewable Energy Resource projects. The goal of the PACE Program is to support clean, affordable energy growth across America. The PACE Program provides loans to eligible entities, with varying levels of loan forgiveness, for projects that generate and/or store electricity from renewable energy resources.
Eligibility
Eligible Applicants
- Other
Rural electric cooperatives, federally recognized Tribes, public utility districts, municipalities, corporations, and other qualified entities which generate and/or store electricity generated from renewable energy resources.
How to Apply
Award Procedure
RUS will evaluate and review each PACE award application as provided in this NOFO and 7 CFR Part 1710 subpart D. The Administrator may approve any PACE award and obligate the award subject to environmental approval as provided in 7CFR 1b.2(h)(3). Further, the Administrator may approve a PACE award but condition any advance on the PACE applicant meeting specific requirements. A successful PACE Award applicant will receive a Conditional Commitment Letter from the Administrator notifying it of the total award amount approved by RUS; any additional controls on its financial, investment, operational and managerial activities; acceptable security arrangements; and such other conditions deemed necessary by the Administrator to adequately secure the Government’s interest and ensure repayment. RUS will disburse funds to awardee in accordance with the terms of the executed Award documents. All award funds will be disbursed as a reimbursement for eligible program costs after the Project is complete and its performance verified in a manner that is sufficient to RUS in RUS’ discretion.
Program details & compliance
Description
The PACE Program is intended to: assist rural communities recover economically through more and better market opportunities and through improved infrastructure; ensure all rural residents have equitable access to RD programs and benefits from RD funded projects; and reduce climate pollution and increasing resilience to the impacts of climate change through economic support to rural communities. PACE will accomplish these goals by providing loans to eligible entities, with varying levels of loan forgiveness, for projects that generate and/or store electricity from renewable energy resources.
Mission Categories
Primary: Construction, Renewal and Operations
Other categories:
Rural Community DevelopmentSustainabilityAlternative Energy Sources
Use of Funds
Allowed Uses
A portfolio of actions, including facilities used to generate electricity from a Renewable Energy Resource, and/or facilities that stores electricity that support the types of Renewable Energy Resources that are eligible to be financed with PACE Program loan funds, as provided in Section 22001 of the IRA and Section 317 of the RE Act.
Restrictions
No project will be funded if construction of the project commenced before August 16, 2022, the effective date of the IRA. Loans will be provided with varying levels of loan forgiveness, to finance power generation projects from Renewable Energy Resource systems. The maximum loan amount, inclusive of the forgivable portion, of any individual award is limited to $100,000,000. The minimum amount of any individual award is $1,000,000. A percentage of the loan under the PACE Program shall be forgiven in an amount based on meeting the loan forgiveness minimum requirements outlined in Section E.1 of the NOFO and on the additional factors described below. RUS’ goal is to maximize the number of projects financed across the three categories described below. Conditions for loan forgiveness are described in sections E and F of the NOFO and include: 1) Category I. Up to 20 percent total loan forgiveness; 2) Category II. Up to 40 percent total loan forgiveness if the project is in or predominantly serves 50 percent or more: Energy Community; Distressed or Disadvantaged Community; or Communities located in Puerto Rico, United States Virgin Islands (USVI), Guam, American Samoa or other U.S. territories or Compact of Free Association (COFA) states; and 3) Category III. Up to 60 percent total loan forgiveness if: the project serves 60 percent or more Tribal members or is owned by a Tribal government, as defined by the Federally Recognized Indian Tribe List Act of 1994 (Pub. L. 103-454; 108 Stat. 4791, 4792) and/or their arms and instrumentalities; or any project that would commensurately replace and accelerate the permanent retirement of a non-renewable energy source(s) that has more than five years of remaining undepreciated capital.
Required Documentation
Applicants must provide the following: a Letter of Interest; a loan application letter; articles of incorporation and bylaws or other applicable governing and organizational documents; environmental and historical preservation compliance documentation; a financial forecast; a power purchase agreement; power resources owned, co-owned, or leased documentation, power purchase contracts; power sales contracts; an engineering report; project contracting documentation; interconnection agreements documentation; system impact studies; transmission service agreements; meteorological data and studies; fuel and fuel transportation strategies documentation; sources and uses of water documentation; real estate agreements; a community benefit plan; a Tribal government resolution of consent certification; and other documents as required by the NOFO and 7 CFR 1710.501.
Reporting & Compliance
Applicable 2 CFR 200 Subparts
- Subpart B — General Provisions
- Subpart C — Pre-Federal Award Requirements
- Subpart D — Post-Federal Award Requirements
- Subpart E — Cost Principles
- Subpart F — Audit Requirements
Formula
Matching requirements are not applicable to this assistance listing.
MOE requirements are not applicable to this assistance listing.