Powering Affordable Reliable Technology Energy Program

The PART Program is to support affordable energy growth across America. The PART Program provides loans to eligible entities, with a level of loan forgiveness, for Projects that generate and/or store electricity from an eligible Renewable Energy Reso

The PART Program is intended to will provide financing for new reliable, resilient and affordable sources of power as well as financing storage devices which add reliability, resiliency and dispatchability to proposed and existing eligible sources of power. Adding to the nation's power supply will help meet the growing need for electric power.

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. The PART Program funding will only provide awards for the construction of hydro, geothermal, or biomass energy generation, and/or storage systems charged with any energy source eligible under section 317 of the Rural Electrification Act.

Entities that been approved for an award under the RUS Powering Affordable Clean Energy (PACE) program or the RUS Empowering Rural America (New ERA) Program may not apply for the same Project under the PART Program. Failure to follow this limitation could result in the PART Applicant being disqualified from the PART program. Only Projects where construction begins after the date of publication of this Notice will be eligible for funding under the PART Program. Funding will not be provided for merchant power Projects; Projects where a non-utility entity is generating power for its own use or behind the meter projects owned by the consumer. Funding will not be provided for the purchase of any existing RER or ESS. There are no Application or origination fees for loans under the PART Program. RUS will only finance Projects that utilize Commercially Available Technology under this notice. PART Applicants may request reimbursement for interconnection costs and other costs associated with being able to deliver the RER and/or the ESS to Off-Takers.

All loan funds must be disbursed on or before September 30, 2031. RUS will make loans to the PACE applicant under the PACE Program for a term not to exceed the lesser of the expected useful life of the Project, the term of the Power Purchase Agreement (if required for execution between the applicant and the Off-Taker), the term of the lease for the land that the project will occupy (if such land is not owned by the applicant), the expiration dates of power supply arrangements between the applicant and its members should the applicant provide the power supply needs of the members under such power supply arrangements, the loan term requested by the applicant or 35 years.

RUS will evaluate the LOIs based on on the criteria provided in 7 CFR part 1710 subpart D and will assess the following: (1) Financial coverage ratios. The Administrator may set financial coverage ratios based on the risk profile of the PART Applicant and specific loan terms. Those financial ratios will be included in the PART borrower's loan documents with RUS. RUS Borrowers will be subject to their current debt service coverage ratios in their current loan documents, unless notified otherwise. (2) Financial Equity Requirements. As noted in Section 3.2 of this notice, RUS will require the Awardee to provide at least 25% equity in the Project for PART Project loans. However, the Administrator may consider requests to waive the 25% financial equity requirement for PART Awards where the Project will serve areas covered under SUTA. System Loans that provided RUS with a perfected senior lien on all assets of the PART Applicant will not have an equity requirement. The required financial equity position will be set forth in the Commitment Letter and the loan documents as a condition to the PART loan. RUS may consider allowing the Awardee to meet the financial equity requirements by utilizing any appliable direct payments or tax credits relating to the Project as provided in Internal Revenue Code of 1986 and its implementing regulations. If the Administrator allows a PART Applicant to meet the financial equity requirement by utilizing applicable tax credits or direct payments relating to the Project, the Agency may require additional security or credit support from the PART Applicant pending the PART Applicant's receipt of the tax credit or direct payment. (3) Loan forgiveness minimum requirements. (i) Ratepayer Benefit: Loan forgiveness must provide demonstrable benefits to rate payers located within the eligible service area. The PART Applicant must demonstrate in its LOI that the consumer benefits and financial benefits resulting from the forgivable portion of the loan will be shared between the Awardee and the Off-Taker(s) or a utility's own customers. This must be shown through a long-range financial forecast scenario that establishes that the revenue per kilowatt hour (KWh) the PART Applicant will receive from the sale of the power to the Off-Takers/consumers would have been higher but for the loan forgiveness. Additionally, a net present value (NPV) calculation should be performed to demonstrate the financial benefit to the rate payer with the addition of the loan forgiveness versus business as usual without loan forgiveness. (ii) Technical Feasibility and Commercially Available Technology. RUS must determine that the Project is technically feasible and confirm that the Project uses a Commercially Available Technology. (iii) Financially Feasible. The proposal must be financially feasible and adequately securable, as outlined in 7 CFR 1710.112.

RUS will evaluate and review each PART award application as provided in this NOFO and 7 CFR Part 1710 subpart D. The Administrator may approve any PART 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 PART applicant meeting specific requirements. A successful PART 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.

A PART applicant that has been invited in writing by RUS to proceed with the loan application, as provided in this NOFO, will have up to sixty (60) to complete the documentation for a complete application. The sixty (60) day timeframe will begin from the date the PART applicant receives an email with RUS' Invitation to Proceed. If the deadline to submit the completed application falls on Saturday, Sunday, or a federal holiday, the application is due the next business day. The Administrator may grant an extension of time to complete the documentation required for an application if, in the Administrator's sole judgment, extraordinary circumstances prevented the PART applicant from completing the application within the timeframe herein stipulated 60 days).