The Rural Business-Cooperative Service (RBCS or the Agency), an agency of the Rural Development (RD) mission area within the U.S. Department of Agriculture (USDA) is issuing a final rule with comment period. Implementation of this action will simplify and streamline requirements and processes in the Rural Energy for America Program (REAP). Under the new REAP structure, projects must already be fully built and operational before the applicant ever applies. Applicants then apply, submitting actual energy production or savings data for the prior 12 months, alongside 12 months of pre-installation data. The Agency evaluates applications for completeness, eligibility, risk, and merit and will award grants subject to the availability of funds and criteria provided in an annual notice. This new approach changes the program to a post completion, performance validated model. All RES and EEI awards will now be based on actual documented output, energy savings, costs, and system performance. Bottlenecks leading to application processing backlogs such as the technical merit review clearance process have been removed from the Agency's purview. Multilocation projects and specific application of certain technologies are now ineligible, and the program proposes to eliminate state level competitions in favor of a single national scoring and selection process. The result is a streamlined but significantly different process intended to reduce risk to the program, simplify administration, and prioritize projects delivering verifiable results. The result of these changes, combined with the release of a planned online application portal, will significantly decrease burden for applicants by shortening application length and review times across the program.
Comments close Nov 2, 2026
The Rural Business-Cooperative Service (RBCS), Rural Housing Service (RHS), and Rural Utilities Service (RUS), together make up the Rural Development (RD or the Agency) mission area within the U.S. Department of Agriculture (USDA). RD is issuing this proposed rule to rescind its regulation regarding construction and repairs. RD found this regulation to be unnecessary and unduly burdensome. In addition, it makes changes to RBCS regulations by removing references to the construction and repair regulations. The plain language summary of the proposal is available on Regulations.gov in the docket for rulemaking.
Comments close Oct 19, 2026
The Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Program (also referred to as the Section 9003 program) provides loan guarantees up to $250 million to assist in the development, construction, and retrofitting of new and emerging technologies. These technologies are: advanced biofuels, renewable chemicals, and biobased products. Collectively, Rural Development's guaranteed loan programs assist in building and maintaining sustainable rural communities. This final rule incorporates revisions intended to clarify, improve, and enhance the delivery of the loan guarantee program.
On September 30, 2024, Rural Development's Rural Business- Cooperative Service, Rural Housing Service, and Rural Utilities Service, agencies of the United States Department of Agriculture (USDA), published a final rule with comment for the OneRD Guarantee Loan Program (OneRD). The final rule made necessary revisions to the policy and procedures that strengthened the oversight and management of the growing Community Facilities, Water and Waste Disposal, Business and Industry, and Rural Energy for America guarantee portfolios. Following implementation of this final rule, the Agency found that corrections were necessary due to an incorrect definition of affiliate, and a section and sentence that were removed erroneously. This document corrects the final regulation.
Rural Development (RD), a mission area within the Department of Agriculture consisting of RHS, RBCS, and RUS, is in the process of reviewing all regulations within its purview to reduce regulatory burdens and costs. Pursuant to this review, RD has identified the provisions in 7 CFR part 1930 as obsolete, unnecessary, and outdated due to lack of substantive material. RD is removing these provisions to streamline and clarify the dictates of title 7.
The U.S. Department of Agriculture (USDA) has independently determined that it will no longer employ the race- and sex-based "socially disadvantaged" designation to provide increased benefits based on race and sex in the programs at issue in this regulation. The USDA has faced a long history of litigation stemming from allegations of discrimination in the administration of its farm loan and benefit programs. However, over the past several decades, USDA has undertaken substantial efforts to redress past injustices, culminating in comprehensive settlements, institutional reforms, and compensatory frameworks. These actions collectively support the conclusion that past discrimination has been sufficiently addressed and that further race- and sex-based remedies are no longer necessary or legally justified under current circumstances.
