Agency: Department of Agriculture-Rural Utilities Service
Description:
To provide partially forgivable loans to renewable-energy developers and electric service providers, including municipals, cooperatives, and investor-owned and Tribal utilities, to help finance large-scale solar, wind, geothermal, biomass, hydropower projects and energy storage in support of renewable energy systems. Projects must be based on bankable power purchase agreements (PPAs) or through a financial guarantee that ensures the financial feasibility of the project. Energy must be sold for resale to eligible off-takers which can include both utility and non-utility customers. The technologies used must be commercially available. PACE funding cannot support merchant power projects.
Bill Section:
22001
US Code:
7 USC 8103
New or Existing:
New
Potential Cost:
$1,000,000,000
Timeline:
FY22-31
Implementation Status/Rulemaking:
On May 16, 2023, USDA published a Notice of Funding Opportunity: Source
The application period for LOIs opened on July 10, 2023 and closed September 29, 2023.
TCS Notes:
The PACE program allocates funding across three applicant categories.
Category 1: Up to 20% total loan forgiveness.
Category 2: Up to 40% total loan forgiveness if 50% or more of the population served are Energy Communities, Distressed Communities, or Disadvantaged Communities.
Category 3: Up to 60% total loan forgiveness if the project is located in a U.S. territory or Compact of Free Association area, is owned by a tribal government, or serve a Tribal population of at least 60%, Substantially Underserved Trust Area, or Substantially Underserved Trust Area.
No GHG emission reduction criteria required from statute.