Powering Affordable Reliable Technology (PART) Energy Program

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 loan Applications, announcing the Application process for those loans, and providing deadlines for Applications from eligible entities under the Powering Affordable Reliable Technology (PART) Energy Program. These loan funds will be made to qualified PART Applicants to finance power generation Projects for Renewable Energy Resource (RER) systems or Energy Storage Systems (ESS) that support RER Projects. The PART Program is making approximately $410 million in appropriated budget authority (BA) funding available under the Inflation Reduction Act of 2022 (IRA). RUS will process and evaluate complete LOI on a rolling basis in the order they are received. The PART Program is to be carried out by the RUS pursuant to Section 22001 of the IRA. Section 22001 of the IRA amends Section 9003 of the Farm Security and Rural Investment Act of 2002 by adding new subsection (h). Section 22001 of the IRA provides RUS with appropriated funds “for the cost of loans under Section 317 of the RE Act.” Additionally, Section 22001 of the IRA provides that PART funds may be utilized to finance Projects that store electricity generated from eligible energy sources listed under Section 317 of the RE Act. These Project Loans or System Loans will be forgiven up to forty percent (40%), provided the Awardee and the Project otherwise meet the terms and conditions of the loan forgiveness. Approximately $410 million in budget authority is being made available under this Notice. The Administrator reserves the right to increase this funding level should additional funds become available or reduce funding in the event an insufficient number of high-quality projects are submitted for consideration. Cost Sharing or Matching: (a) Project Loans. Awards will finance up to 75% of the total capitalized costs of a Project. Awardees will be required to provide at least 25% of the Project’s total capitalized cost in the form of cash or equity investments, which may not be derived from debt instruments. However, the Agency may utilize its authority under Section 306F of the RE Act and finance up to 100% of the costs of the Projects benefiting SUTA areas. (b) System Loans. PART System Loans may cover up to 100% of the...

RUS will accept LOIs and Applications from Operating Utilities as the followings: (a) For-profit organizations.(b) State or local governments. (c) Indian Tribes defined by the Federally Recognized Indian Tribe List Act of 1994 (Public Law 103-454; 108 Stat. 4791, 4792), including their wholly arms and instrumentalities. (d) Alaska Native Corporations, including regional or village corporations as defined under or established pursuant to the Alaska Native Claims Settlement Act (Public Law 104-42; 85 Stat. 688)(e) Nonprofits. (f) Distribution electric cooperatives and generation and transmission electric cooperatives. (g) Certificated electric utilities

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...

This program has no statutory formula. Project loans require at least 25% equity/matching unless covered by agency discretion as explain in the NOFO. See NOFO for further details and for information about system loans.MOE requirements are not applicable to this assistance listing.

Fiscal Year2025: This program has funded dozens of energy storage systems, new generation capacity, and transmission system improvements.