Affordable Rural Cooperative (ARC) Energy Program

Open Posted

Opportunity number
RUS-ARC-2026
Agency
Applications due
Award size
$100,000 to $20,000,000

Opportunity facts

Assistance listings
Funding instrument
Not on record
Category
  • Energy
Eligible applicants
  • Other
Full announcement

Opportunity details come from Grants.gov. Updated .

About this opportunity

Written by GovTribe AI ·

The Rural Utilities Service (USDA Rural Development) is soliciting Letters of Interest for the Affordable Rural Cooperative (ARC) Energy Program, with LOI submissions due November 20, 2026, at 11:59 a.m. ET. The program makes approximately $175 million in appropriated budget authority available under the Inflation Reduction Act to fund nuclear power deployment and transmission efficiency improvements. No single awardee may receive more than $20 million in budget authority under this NOFO.

Eligible applicants are operating electric cooperatives described in IRC sections 501(c)(12) or 1381(a)(2) that are current or former RUS electric loan borrowers, cooperatives serving predominantly rural areas (at least 50 percent of service territory in rural areas), or wholly or jointly owned subsidiaries thereof. Applicants must register in SAM.gov with a valid UEI and Tax Identification Number before submission.

RUS will finance up to 75 percent of total capitalized project cost; awardees must provide and maintain at least 25 percent in cash or equivalent equity. Grants may not exceed 25 percent of eligible award costs. Available funding instruments include loans at Treasury rate minus one-eighth of one percent with two-year principal deferral, grants, and loan-grant combinations.

The application operates in two phases: LOI submission (Phase 1) and full application (Phase 2). High-ranking LOIs receive an Invitation to Proceed with 90 calendar days to submit a full application. Anticipated award date is Summer/Fall 2027. Performance period extends four years from environmental clearance but no later than September 30, 2031.

Eligible activities include purchasing nuclear energy or nuclear power systems, deploying nuclear systems, system improvements extending plant life or expanding power output, and implementing transmission efficiency improvements. Applicants must use the RUS New Clean Power Tool to calculate Section 22004 emissions reductions. Award funds are allocated approximately 50 percent each between Category I (Eligible Energy) and Category II (Transmission Energy Efficiency Improvements). Environmental clearance from RUS is required before construction or fund release.

CFDA 10.758.

Synopsis

The Rural Utilities Service (RUS or the Agency), a Rural Development (RD) agency of the United States Department of Agriculture (USDA), is soliciting Letters of Interest (LOI) for applications under the Affordable Rural Cooperative (ARC) Program. In addition, the Agency is announcing the eligibility requirements, application process and deadlines, and the criteria that will be used by RUS to assess ARC Applications. The ARC Program is making approximately $175 million in appropriated budget authority for the cost of loan and grant funds available under the Inflation Reduction Act (IRA) of 2022. In keeping with the statutory authority for the program, RUS will utilize the ARC funds to assist Eligible Entities to achieve future net reductions consistent with Section 22004 of the IRA through the deployment of advanced, efficient transmission infrastructure and nuclear power supply. Available funds will be allocated for each purpose while advancing the long-term resiliency, reliability, and affordability of rural electric systems. All Eligible Entities are responsible for any expenses incurred in developing their LOIs and ARC Applications.


This funding notice advances the statutory purpose of achieving the greatest reductions as provided in Section 22004 of the IRA associated with rural electric systems by increasing the amount of emission-free nuclear power and increasing the efficiency of the transmission grid within such systems. These new sources of cooperative power supply and enhanced transmission efficiency will result in reduced future demand for other sources of power.


Cost Sharing or Matching:

For Project and System loans, RUS will finance up to 75 percent of the total capitalized cost of the Project in the loan component of a Project and/or System Award. The Awardee will be required to initially provide and maintain for the term of the Project and/or System Award at least 25 percent of the Project's total capitalized cost in the form of cash or an equity investment.


As noted in Section 2.0 of the NOFO, the Agency may where Financially Feasible allow an Awardee to utilize the grant component of the Award and/or any applicable tax credit that it expects to receive (including credit amounts expected to be received through Elective Pay elections under section 6417 of the Internal Revenue Code) toward the 25 percent equity requirement for a Project Award. Such financial equity may not come from the proceeds of any loan from any creditor, including insiders of the Awardee.

Eligibility

(1) Operating Electric cooperatives described in section 501(c)(12) or 1381(a)(2) of the Internal Revenue Code of 1986 who are currently or have been in the past a RUS electric loan borrower pursuant to the RE Act;(2) Electric cooperatives serving predominantly Rural Areas; or(3) Wholly or jointly owned subsidiaries of such electric cooperatives listed in (1) and (2).For the purposes of this program, the term "predominantly rural" as used in (2) in this paragraph shall mean a service territory that must include at least 50 percent Rural Areas

Files

File Type Posted
PKG00294427.pdf PDF
New_Clean_Power_Tool_1.2.xlsx XLSX spreadsheet
Sample_Letter_of_Interest_ARC.pdf PDF
ARC_Program_Guide_LOI_Stage.pdf PDF
ARC_Form_SF_424_Questions.pdf PDF
ARC_NOFO.pdf PDF

On GovTribe

Work this opportunity

  • Track it in your pipeline
  • Find teaming partners
  • Similar grant opportunities
  • Ask GovTribe AI about this opportunity
Try for free Login