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Department of Agriculture, Rural Business-Cooperative Service: Notice of Solicitation of Applications for the Rural Energy for America Program for Fiscal Years 2023 and 2024

B-335185 Apr 12, 2023
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Highlights

GAO reviewed the Department of Agriculture, Rural Business-Cooperative Service's (USDA) new rule entitled "Notice of Solicitation of Applications for the Rural Energy for America Program for Fiscal Years 2023 and 2024." GAO found that the final rule (1) announces the availability of $1.055 billion in Inflation Reduction Act funds across six quarterly cycles to be obligated by September 30, 2024, under the Rural Energy for America Program (REAP); and (2) announces types of projects that qualify for a federal grant share not to exceed 50 percent of the project cost, a set-aside for underutilized renewable energy technologies, and scoring revisions to support Administration priorities.

Enclosed is our assessment of USDA's compliance with the procedural steps required by section 801(a)(1)(B)(i) through (iv) of title 5 with respect to the rule. If you have any questions about this report or wish to contact GAO officials responsible for the evaluation work relating to the subject matter of the rule, please contact Shari Brewster, Assistant General Counsel, at (202) 512-6398.

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B-335185

April 12, 2023

The Honorable Debbie Stabenow
Chairwoman
The Honorable John Boozman
Ranking Member
Committee on Agriculture, Nutrition, and Forestry
United States Senate

The Honorable Glenn Thompson
Chairman
The Honorable David Scott
Ranking Member
Committee on Agriculture
House of Representatives

Subject: Department of Agriculture, Rural Business-Cooperative Service: Notice of Solicitation of Applications for the Rural Energy for America Program for Fiscal Years 2023 and 2024

Pursuant to section 801(a)(2)(A) of title 5, United States Code, this is our report on a major rule promulgated by the Department of Agriculture, Rural Business-Cooperative Service (USDA) entitled “Notice of Solicitation of Applications for the Rural Energy for America Program for Fiscal Years 2023 and 2024” (RBS-22-Business-0029). We received the rule on March 31, 2023. It was published in the Federal Register as a notice on March 31, 2023. 88 Fed. Reg. 19239. USDA has indicated that applications received on or after April 1, 2023, will be evaluated and scored according to the provisions of this final rule. However, USDA has further indicated that it will not take action on any such applications until the later of 60 days following notification to Congress or May 30, 2023.

The final rule announces the availability of $1.055 billion in Inflation Reduction Act funds across six quarterly cycles to be obligated by September 30, 2024, under the Rural Energy for America Program (REAP). USDA states that the rule also announces types of projects that qualify for a federal grant share not to exceed 50 percent of the project cost, a set-aside for underutilized renewable energy technologies, and scoring revisions to support Administration priorities.

Enclosed is our assessment of USDA’s compliance with the procedural steps required by section 801(a)(1)(B)(i) through (iv) of title 5 with respect to the rule. If you have any questions about this report or wish to contact GAO officials responsible for the evaluation work relating to the subject matter of the rule, please contact Shari Brewster, Assistant General Counsel, at (202) 512-6398.

Shirley A. Jones
Managing Associate General Counsel
Enclosure

cc: Michele Brooks
Director, Regulations Management Division
Rural Development Innovation Center
Department of Agriculture

ENCLOSURE

REPORT UNDER 5 U.S.C. § 801(a)(2)(A) ON A MAJOR RULE
ISSUED BY THE
DEPARTMENT OF AGRICULTURE,
RURAL BUSINESS-COOPERATIVE SERVICE
ENTITLED
“NOTICE OF SOLICITATION OF APPLICATIONS
FOR THE RURAL ENERGY FOR AMERICA PROGRAM
FOR FISCAL YEARS 2023 AND 2024”
(RBS-22-BUSINESS-0029)

(i) Cost-benefit analysis

In its submission to us, the Department of Agriculture, Rural Business-Cooperative Service (USDA) indicated that it considered the preparation of an analysis of the costs and benefits of this final rule to be not applicable.

(ii) Agency actions relevant to the Regulatory Flexibility Act (RFA), 5 U.S.C. §§ 603–605, 607, and 609

The final rule does not discuss the RFA. In its submission to us, USDA indicated that it considered preparation of an RFA analysis for this final rule to be not applicable.

(iii) Agency actions relevant to sections 202–205 of the Unfunded Mandates Reform Act of 1995, 2 U.S.C. §§ 1532–1535

The final rule does not discuss the Unfunded Mandates Reform Act of 1995 (UMRA). In its submission to us, USDA indicated that it considered preparation of a UMRA analysis for this final rule to be not applicable.

(iv) Other relevant information or requirements under acts and executive orders

Administrative Procedure Act, 5 U.S.C. §§ 551 et seq.

USDA did not discuss any actions taken pursuant to the Administrative Procedure Act in this final rule.

Paperwork Reduction Act (PRA), 44 U.S.C. §§ 3501–3520

USDA states that the information collection requirements associated with the programs covered in this final rule have been approved by the Office of Management and Budget (OMB) under OMB Control Number 0570-0067.

Statutory authorization for the rule

USDA promulgated this final rule pursuant to section 8107 of title 7, United States Code, as well as section 22002 of the Inflation Reduction Act of 2022, Public Law 117-169.

 

Executive Order No. 12866 (Regulatory Planning and Review)

In its submission to us, USDA indicated that it considered the Order’s requirements to be not applicable to this final rule.

Executive Order No. 13132 (Federalism)

In its submission to us, USDA indicated that it considered the Order’s requirements to be not applicable to this final rule.

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