Instructions for RD 4280-3A (Rural Energy for America Program)
$80,000 or less. The following information is based on the programmatic requirements found in 7 C.F.R. 4280, part B. If there are differences between the information found in this form and 7 C.F.R. 4280, part B, 7 C.F.R. 4280, part B will take precedence. Programmatic definitions can be found in 7 C.F.R.
4280.103. Consider setting “Autofill” in Adobe Acrobat to “Off” when completing this form. When entering dates please use forward slash (00/00/000) for proper formatting.
Field Name / Item No. | Instruction for RD 4280-3A |
I. A. Applicant Legal Name | Enter legal name of the applicant. This should match block 8a of the SF 424 form. |
I. B - D. Applicant’s Race, Gender, and Ethnicity. | The purpose of these questions is to gather race, ethnicity, and gender information about persons who apply and participate in this USDA program. The information provided will not be used when reviewing the application or determining eligibility to participate in this program. The answers provided are voluntary and are not required to be considered a complete application. The information may be used by the Agency to award priority points and to improve the operation of this program, to help USDA design additional opportunities for program participation, and to monitor enforcement of laws that require equal access to this program for eligible persons. For entities, check all that apply. Information will be kept private to the extent permitted by law. |
I. E. Veteran Status | Indicate if applicant is a veteran. Information may be used to award priority points. Veteran. A veteran is a person who served in the active military, naval, or air service, and who was discharged or released therefrom under conditions other than dishonorable as defined in title 38 U.S.C. 101(2). |
I. F. Socially Disadvantaged Group | Indicate if applicant is a member of a socially disadvantaged group, which are groups whose members have been subjected to racial, ethnic, or gender prejudice because of their identity as members of a group without regard to their individual qualities. Information may be used to award priority points. |
Field Name / Item No. | Instruction for RD 4280-3A |
II. Project Title | Enter the title of the project. This should match block 15 of the SF 424 form. |
III. System for Awards Management (SAM) Commercial and Government Entity (CAGE) Code | Each applicant must have a Unique Entity Identifier number (UEI) or Dun and Bradstreet Universal Number System (DUNS) number corresponding to the tax identification/social security number of the applicant entity as provided on the SF 424 form. Applicants must register in the SAM (www.sam.gov) prior to submitting an application. Upon successful registration, a CAGE code is assigned. Enter the assigned CAGE code and expiration date. The SAM registration must remain active until all funds have been released. |
IV. A. Type of Applicant – Certification | The applicant must meet the definition of Agricultural Producer or Rural Small Business per 7 C.F.R. 4280.103 and must certify their eligibility as part of a complete application. See section XIV A of this document for applicable definitions. The Agency reserves the right to ask for additional information to verify applicant eligibility. |
IV. B. Type of Applicant – NAICS code | The primary North American Industry Classification System (NAICS) code and size limitation for the applicant’s operation must be provided for all applicants. Codes and size limitations |
V. A. Applicant Description | Describe the ownership of the applicant and the project’s relationship to the applicant’s operation. Ex. New LLC formed to operate an anaerobic digester. Waste from the farm operating entity will be supplied under contract to the LLC. |
V. B. Business History | Explain how long the applicant’s business has been in operation. Operational status means income and expenses have been incurred for the business. |
V. C. Ownership & Control | Describe how the applicant owns the project and owns or controls the project site. Provide specific details on any leases used for site control. |
V. D. Other Entities | Provide information on entities the applicant controls or is controlled by, describing the relationship between the entities. These entities must be considered when determining small business eligibility. Conflict of interest provisions may be found in 7 C.F.R. 4280.106. |
Field Name / Item No. | Instruction for RD 4280-3A |
VI. A & B. Project Information | Identify the type of project to be funded. Energy Efficiency Improvement projects must show energy savings to be eligible. For Renewable Energy System applications, indicate the type of technology, if there is a storage component to the project, or if the project is the retrofit of an existing renewable energy system. For hybrid renewable energy systems, list the technologies and how they are incorporated into a unified system to support the project. The energy assessment or audit, technical report or vendor certification should be attached to the application to support the project. The Agency may require a Feasibility Study if the application, technical report, or other supporting materials does not provide sufficient documentation to support a successful project. |
VI. C. Project Description | Project description should include: Size of the project, projected energy generation (including energy generated for sale if applicable), intended purpose, (i.e. new facility and the energy produced will be used by the new facility for on-site use or replacing an existing fossil fuel energy source). Include all agreements such as interconnection, power purchase agreements, or net metering agreement for any excess energy produced. Energy quantity and rate to be paid for energy should be noted on the agreements or in the application. List the project location and provide a description about the project site. Location can be an address or legal description. Include information about whether the site is wooded, open, industrial park, or farmland, project close to buildings, etc. |
Field Name / Item No. | Instruction for RD 4280-3A |
VI. D. 1. Economic Assessment-Project Cost Breakdown | Break down total project costs by providing a list of major equipment, labor costs, fees and other costs associated with the project. If a per unit price is applicable, provide this level of detail. For example, 50 solar PV panels at $300.00 each. Detailed bids may be attached to support total project costs. Provide useful life information on major system components. Useful life means the period of time for which an asset will be economically feasible in a business. Useful life estimations terminate at the point when assets are expected to become obsolete, require major repairs, or cease to deliver economical results. Useful life is not necessarily the same as the depreciated value attributed to an asset. 2 CFR 200 requires that the Agency monitors assets funded in part with federal funds for their useful life, or until the per unit fair market value is less than $5,000. Definitions: Total project costs: The sum of all costs associated with a completed project, including ineligible project costs. It does not include construction or equipment costs that would have been incurred regardless of the installation of the RES or EEI project. For example, the foundation for a building where a RES is being installed, storage only grain bins connected to a drying system, or roofing of a building where solar panels will be attached. Eligible project costs: Those expenses approved by the Agency for the project as eligible uses of funds. Eligible project costs are only those costs incurred after a complete application has been received by the Agency and are directly related to and its use and purpose is limited to the RES or EEI: (1) purchase and installation of new or refurbished equipment; (2) construction, retrofitting, replacement, and improvements; (3) EEI identified by vendor/installer certification or in the applicable energy assessment or audit; (4) fees for construction permits and licenses and fees required in an interconnection agreement; (5) professional service fees related to the project for qualified consultants, contractors, installers, and other third-party services; (6) installation of a second meter to separate residence from business operation, when applicable to project. The Agency will review total project costs to determine eligibility of all costs. Ineligible project costs will be removed and the grant amount will be reduced accordingly. Remaining eligible project costs must meet the definition of an energy efficiency improvement or a renewable energy system to be eligible. |
Field Name / Item No. | Instruction for RD 4280-3A |
VI. D. 2. Estimated Project Energy Generation or Savings and Cost of Energy | For a RES, provide the total estimated amount of renewable energy to be generated, including the quality and availability of the renewable resources to the project. This may be submitted via a Vendor/Installer certification, in the form of a renewable site assessment, or other documentation to validate the total amount of energy to be generated, including the quality and availability of the renewable energy resource to the project. Document how the energy will be used: units sold, metered/credited, or for direct use. Provide documentation from the utility on the energy price to be paid per unit as well as documentation of the quantity of energy to be sold or metered/credited. Replacement projects require at least 12 months of historical energy use in the applicant’s name or they will be considered and scored as energy generation. If energy replaced exceeds 150% of historical business operation use, the project will score as energy generation. When calculating the actual average price per unit of energy, only include energy charges directly reduced by the unit of energy being replaced or saved, e.g. do not include monthly service fees, demand or other charges if not directly reduced. Attach at least the last 12 months of utility bills to the application if the project is replacing energy. If by-products or other revenue will be attributed to the system, describe the revenue source and provide documentation on the quantity, units, and price to be paid. Incentives or credits that will not be received annually for the life of the project should not be included. An application for installation of a renewable energy system to serve a residence only is not eligible. 50% or greater of projected renewable energy to be generated must benefit the business operation for the project to be eligible. If a project will be connected to a shared meter that connects both the business and a residence, provide the historical residential energy use amount and unit of measurement. Provide detailed assumptions and energy use summary to document historical energy consumption. Project costs and grant amount will be pro-rated accordingly (Ex. If 56% of energy will benefit the business operation, 56 percent of the total project costs will be considered eligible for REAP assistance). |
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A separate meter that results in all energy generated being used for non-residential energy consumption may also be installed. Indicate intent to install on application, if applicable. For energy efficiency savings, the quantity and the dollar value of energy saved should be documented in the energy assessment/audit. Simple payback for all projects is calculated as: Total Project Costs/ annual energy generation/replacement/savings value, following provisions as noted above, and as defined in 4280.103. Simple payback. The estimated simple payback of a project funded under this part as calculated using paragraphs (1) or (2), as applicable, of this definition.
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Field Name / Item No. | Instruction for RD 4280-3A |
savings the agricultural producer or rural small business realizes as a result of the improvement.
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VI. E. Qualifications | Describe the key service providers for the project, including the number of similar systems installed/or manufactured, professional credentials, licenses, and relevant experience. When specific numbers are not available for similar systems, estimations will be acceptable. Attach additional pages if required. |
Field Name / Item No. | Instruction for RD 4280-3A |
VII. RES Technical Requirements | Complete this block for Renewable Energy System projects only. Energy Efficiency Improvement projects should complete block VIII. Hybrid projects are a combination of two or more Renewable Energy System technologies that are incorporated into a unified system to support a single project. Projects which propose two or more different Renewable Energy System technologies at two or more locations (a different technology at each site) are not eligible. Provide a vendor/installer certification which includes the requirements listed in a – d. The resource assessment should include the quantity, quality, and availability of the resources to the project, and when applicable should document historical residential energy use. A renewable energy site assessment or other documentation including but not limited to: PVWatts, NREL Solar and Wind Maps, solar pathfinder or anemometer installation readings, or GeoExcel analysis may be submitted to document resource availability. Commercially available. A system that meets the requirements of either paragraph (1) or (2) of this definition.
Examples include, but are not limited to: http://smallwindcertification.org/ http://www.solar-rating.org/ https://energyresearch.ucf.edu/ http://www.awea.org/ |
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http://www.intertek.com/wind/small/directory/ A feasibility study may be requested by the Agency based on the scope of the project to the applicant’s overall operations. If a feasibility has been conducted it may be attached to support the project. |
Field Name / Item No. | Instruction |
VIII. EEI Technical Requirements | Complete this block for Energy Efficiency Improvement projects only. Renewable Energy System projects complete block VII. Provide a vendor/installer certification which includes the requirements listed in a – c. Provide existing use, proposed use, and energy savings information as documented in an energy assessment or energy audit as required under Section C of Appendix A. Provide qualifications of person completing the assessment/audit. Convert energy to BTU’s by use of the noted conversion factors. ATTACH THE ENERGY ASSESSMENT OR ENERGY AUDIT TO THE APPLICATION. Definitions: Energy assessment. An Agency-approved report assessing energy use, cost, and efficiency by analyzing energy bills and surveying the target building and/or equipment sufficiently to provide an Agency- approved energy assessment.
Energy assessor. A qualified consultant who has at least 3 years of experience and completed at least five energy assessments or energy audits on similar type projects and who adheres to generally recognized engineering principles and practices. Energy audit. A comprehensive report that meets an Agency- approved standard prepared by an energy auditor or an individual supervised by an energy auditor that documents |
Field Name / Item No. | Instruction for RD 4280-3A |
current energy usage; recommended potential improvements (typically called energy conservation measures) and their costs; energy savings from these improvements; dollars saved per year; and Simple Payback. The methodology of the energy audit must meet professional and industry standards. The final energy audit must be validated and signed off by the energy auditor who conducted the audit or by the supervising energy auditor of the individual who conducted the audit, as applicable. Acceptable Energy Audits include but are not limited to those Energy Audits that meet: the American Society of Heating, Refrigeration and Air-Conditioning Engineers (ASHREA) Level II Energy Survey; Analysis and American National Standards Institute (ANSI); or American Society of Agricultural and Biological Engineers (ASABE) S162 Standard for performing on farm Energy Audits. Energy auditor. A qualified consultant that meets one of the following criteria:
Qualified Consultant(s). An independent third-party person possessing the knowledge, expertise, and experience to perform the specific task required. |
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IX. Positive Project Effects | An application will be scored on environmental benefits and will receive a maximum of 5 points if the Applicant has indicated in the application that the proposed project will have a positive effect on three impact areas: resource conservation (e.g., water, soil, forest), public health (e.g., potable water, air quality), and the environment (e.g., compliance with EPA’s RFS(s), greenhouse gases, emissions, particulate matter). Any additional specific measures applicable to the project should be described. Points will be awarded as follows:
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X. Commitment of Funds | Describe the source and amount of all funds that will be used to complete the project. To receive points under the readiness scoring criteria written commitments must be attached. Attach written commitments (e.g. Letter of Commitment, bank statement) from each source that is providing funds. Third party commitment letters must be signed by the authorized party, be specific to the project and identify the dollar amount and any applicable rates and terms. Letter of intent, pre-qualification, subject to bank approval, or other underwriting requirements are NOT acceptable. Conditionalizing on receipt of REAP funds or appraisal is acceptable. |
XI. Relationship | Self-explanatory |
XII. Previous Funding | Self-explanatory |
XIII. Good Standing | Self-explanatory |
Field Name / Item No. | Instruction for RD 4280-3A |
XIV. Certifications - A | The applicant must meet the applicant eligibility requirements of 7 CFR 4280.112 which include: The applicant must meet the definition of Agricultural Producer or Rural Small Business and must certify their eligibility as part of a complete application. The applicant must at the time of application and if award is made for the useful life of the project as described in the Financial Assistance Agreement, own the project and own and control the site for the project. If the controlling interest in the applicant entity is otherwise eligible and a legal transaction between two parties for the sale of energy in an open market is being proposed, the Agency will not consider the eligibility of the energy end-user. If the proposed end user is an otherwise in-eligible entity, such as an entity which is residential in nature or a non-profit entity, and the REAP applicant entity is a newly formed special purpose entity with substantially the same ownership as the sole end-user, then the applicant and therefore application, are not eligible. The applicant must have at the time of application satisfactory sources of revenue to provide for operation, management, maintenance and any debt service of the project for its useful life. The applicant must control the revenues and expenses of the project, including its operation and maintenance. The applicant must have legal authority to apply for and carry out the grant. The applicant must provide a Dun and Bradstreet Data Universal Number System (DUNS) number as part of the application. The DUNS number must be registered in the System for Awards Management (SAM) system prior to submitting an application and must maintain an active registration until final funds are disbursed. Definitions: Agricultural producer. A person, including non-profits, directly engaged in the production of agricultural products through labor management and operations, including the cultivating, growing, and harvesting of plants and crops (including farming); breeding, raising, feeding, or housing of livestock (including ranching); forestry products; hydroponics; nursery stock; or aquaculture, whereby 50 percent or greater of their gross income is derived from the operations. |
Field Name / Item No. | Instruction for RD 4280-3A |
The percentage is calculated as the average of gross agricultural operations income of the concern divided by the gross total income of the concern for the five most recent years. If the concern has been in operation for less than 60 months, use average gross agricultural operations income and gross total income for as long as the concern has been in operation. Agricultural operations income may include such items as production contracts, crop insurance, commodity payments, etc. Total income may include W-2 wages, schedule C income, and other income not related to the agricultural operation. Calculations should be made using the applicant’s five most recent tax years. Each year’s gross agricultural operations income will be divided by the applicant’s gross total income, then the five years will be averaged to determine eligibility. An Agricultural Producer could be located in either a Rural or a non-rural area. Rural or rural area. Any area of a State not in a city or town that has a population of more than 50,000 inhabitants as further defined in 7 C.F.R. 4280.103. Small business means,
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the Tribal government, e.g. aggregation with parent, subsidiary or affiliate entities is not required for Tribal entities; and
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XIV. Certifications - B | The proposed project must meet the project eligibility requirements found in 7 C.F.R. 4280.113 which include: Be for the purchase of a new renewable energy system; the purchase of a refurbished renewable energy system; the retrofitting of an existing renewable energy system; hydroelectric sources with a rated power of 30 megawatts or less are eligible; making energy efficiency improvements that will use less energy on an annual basis than the original building and/or equipment that it will improve or replace as demonstrated in a vendor/installer certification, an energy assessment, or an energy audit as applicable. Construction of a new energy efficient building only when the building is used for the same purpose as the existing building, and, based on an energy assessment or energy audit, as applicable, it will be more cost effective to construct a new building and will use less energy on an annual basis than improving the existing building. Subsequent improvements such as those that replace or duplicate improvements previously funded under this subpart may or may not be eligible for funding: If the replacement is prior to the end of the existing funded equipment’s useful life, then the proposed improvement even if more energy efficient is ineligible. If the replacement is at or after the end of the existing funded equipment’s useful life, then it is eligible for funding provided it is more energy efficient than the previously funded improvement. Be for commercially available and replicable technology. Have technical merit as determined using the procedures specified in 7 C.F.R. 4280.117. If the type of applicant is a rural small business, the project must be located in a rural area in a state. If the type of applicant is an agricultural producer, the project may be located in a rural or non-rural area in a state, and the application must support the production, processing, vertical integration or marketing of agricultural products. For a renewable energy system project where a residence is closely associated with and shares an energy metering device with an agricultural operation or a rural small business to be served by the project, 50 percent or more of the energy to be |
Field Name / Item No. | Instruction for RD 4280-3A |
Generated by the RES must be used by the agricultural operation or rural small business in order for the project to be eligible. | |
XIV. Certifications – C, D, E | Self-explanatory |
XIV. Certifications - F | As per 7 C.F.R. 4280.120 (c) the applicant is solely responsible for the execution of all contracts and Agency review and approval are not required. Upon completion of the project, if awarded, the grantee must submit to the Agency a copy of the contractor’s certification of final completion for the project and a statement that the grantee accepts the work completed. At its discretion, the Agency may require the Applicant to have an Inspector certify that the project is constructed and installed correctly. The Renewable Energy System or Energy Efficiency Improvement must be constructed, installed, and operating as described in the technical report prior to disbursement of funds. Renewable Energy Systems must be operating at the noted steady state operating level for a period of not less than 30 days prior to disbursement of funds. Executed contracting forms as outlined by the Agency in the Letter of Conditions will be required by all persons who furnished materials and labor in connection with the contract. |
XIV. Certifications - G | Projects as proposed must be completed in their entirety prior to requesting reimbursement of funds. |
XIV. Certifications - H | Required insurance per 7 C.F.R. 4280.123 (b) includes: Agency approved insurance coverage maintained for 3 years after the Agency has approved the final performance report unless this requirement is waived or modified by the Agency in writing. Insurance coverage shall include, but is not limited to:
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Field Name / Item No. | Instruction for RD 4280-3A |
XIV. Certifications - I | The application must include a certification that the design, engineering, testing, and monitoring will be sufficient to demonstrate that the project will meet its intended purpose. |
XIV. Certifications – J, K | Self-explanatory |
XIV. Certifications - L | Open and free competition requirements require applicants to solicit prices from multiple sources before deciding on one vendor. All procurement transactions, regardless of procurement method and dollar value, must be conducted in a manner that provides maximum open and free competition. Procurement procedures must not restrict or eliminate competition. Competitive restriction examples include, but are not limited to, the following: placing unreasonable requirements on firms in order for them to qualify to do business; noncompetitive practices between firms; organizational conflicts of interest; and unnecessary experience or excessive bonding requirements. In specifying material(s), the grantee and its consultant will consider all materials normally suitable for the project commensurate with sound engineering practices and project requirements. The Agency will consider any recommendation made by the grantee’s consultant concerning the technical design and choice of materials to be used for such a project. If the Agency determines that a design or material, other than those that were recommended, should be considered by including them in the procurement process as an acceptable design or material in the project, the Agency will provide such Applicant or grantee with a comprehensive justification for such a determination. The justification will be documented in writing. |
XIV. Certifications - M | Self-explanatory |
XIV. Certifications - N | This certification is required for bioenergy projects that proposed to use woody biomass from a National Forest System or public lands, as a feedstock. The applicant must certify that any and all woody biomass that comes from a National Forest System land or public lands cannot be used as a higher value wood-based product. For bioenergy projects that use woody biomass from private land, this certification is not required. |
XV. Attachments | Self-explanatory |
Field Name / Item No. | Instruction for RD 4280-3A |
XVI. Signature | Original signature required. Agency reserves the right to ask for additional information to verify certifications made or to determine project and applicant eligibility. |