New Empowering Rural America (New ERA) Program
Program Funding
Annual program obligations reported to SAM.gov.
Funded Projects
Examples of what this program has supported.
Program Objective
RUS will utilize the New ERA funds to assist eligible entities to achieve the greatest reduction in greenhouse gas emissions while advancing the long-term resiliency, reliability, and affordability of rural electric systems.
Eligibility
Eligible Applicants
- Not-for-Profit Organization
An electric cooperative described in section 501(c)(12) or 1381(a)(2) of the Internal Revenue Code of 1986 and is or has been a RUS or Rural Electrification Administration (REA) electric loan borrower pursuant to the Rural Electrification Act of 1936 (RE Act) or is serving a predominantly rural area (or a wholly or jointly owned subsidiary of any the preceding listed such electric cooperatives).
How to Apply
Award Procedure
Applicants not selected for funding will be notified in writing and informed of any review and appeal rights. Successful applicants will receive a Commitment Letter from the Administrator specifying: 1) the total amount of the award approved by RUS; and 2) 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. Upon receipt of the acceptance of the award from the awardee, RUS will begin to prepare the award documents with the assistance of the applicant. Upon completion of the award documents, RUS will forward those documents to the applicant. RUS will disburse funds to the awardee in accordance with the terms of the executed award documents, the NOFO, and the applicable provisions of 7 CFR parts 1710 through 1730, 1767, 1773, 1787, and 1970.
Decision Timeline
- Approval: From 60 to 90 days
Program details & compliance
Description
The New ERA Program provides financial assistance to eligible electric cooperatives, as described in the NOFO, to achieve the greatest reductions in 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.
Mission Categories
Primary: Rural Community Development
Other categories:
SustainabilityAlternative Energy SourcesConstruction, Renewal and Operations
Use of Funds
Allowed Uses
The purchase of renewable energy, renewable energy systems, zero-emission systems, and carbon capture and storage systems, the deployment of such systems, or the implementation of energy efficiency improvements to electric generation or transmission systems of eligible entity, and the combinations of any such activities.
Restrictions
Use restrictions include: projects that receive support from the New ERA Program for construction will not be eligible for support for the direct purchase of power produced by that supported project; the Agency will only finance Commercially Available Technologies; given the statutory focus on reductions in greenhouse gases, the Agency will not utilize funds made available under this funding notice to: 1) finance new investments in new sources of fossil fueled power; or 2) except for carbon capture storage systems, system improvements at existing fossil fueled generation plants, regardless of whether such improvement is incorporated in the scoring of the Applicant’s Portfolio of Actions; RUS will not provide funding under this NOFO for any project if construction of the project commenced before August 16, 2022, the effective date of the Inflation Reduction Act. System awards, only available to operating electric utilities, and project awards will be offered to eligible applicants. There are three types of loan awards: an applicant may request an award to finance any project or combination of projects in its application with a 100 percent loan. The interest rate for a 100 percent loan may be set at a fixed percent as low as two percent or at a rate tied to the Federal government’s cost of money; 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 total cost to the applicant in carrying out the projects; or an applicant may request to refinance existing RUS or RUS guaranteed debt or debt from a third party, or modify existing RUS or RUS guaranteed debt, if the applicant can demonstrate that such refinancing or modification, including the refinancing or modification of existing RUS or RUS guaranteed debt relating to a stranded asset, will allow the applicant to pay for or otherwise finance an eligible activity.
Required Documentation
Applicants must provide the following: a Letter of Interest (LOI); a cover letter; a board resolution; articles of incorporation or bylaws or other applicable governing or organizational documents; environmental and historical preservation requirements; a financial forecast; a power purchase agreement; power supply arrangement documentation; an engineering report; power contracting documentation; interconnection agreements; system impact studies; a transmission service agreement; other major agreements; meteorological data and studies; fuel and fuel transportation strategies; sources and uses of water documentation; technical and financial descriptions; real estate agreements; a community benefit plan; refinancing and modification documentation; non-RUS funds documentation; and a Tribal government resolution of consent.
Matching Requirements
For project loans, RUS will finance up to 75 percent of the total capitalized cost of the project in a project award in the loan component of an award. The awardee 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.
Reporting & Compliance
Applicable 2 CFR 200 Subparts
- Subpart B — General Provisions
- Subpart C — Pre-Federal Award Requirements
- Subpart D — Post-Federal Award Requirements
- Subpart F — Audit Requirements