Powering Affordable Reliable Technology Program

What does this program do?

The goal of the Powering Affordable Reliable Technology (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 eligible renewable energy resources.

The PART Program supports affordable energy growth across America by providing loans for projects that generate or store electricity from a renewable energy resource. Part of the loan may also qualify for loan forgiveness.

Who may apply for this program?

Eligible Applicants. Rural Utilities Service (RUS) will accept LOIs and applications from Operating Utilities as described below:

• For-profit
• State or local
• 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
• 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; 85 688)
• Distribution electric cooperatives and generation and transmission electric
• Certified electric utilities

Eligible applicants include utilities structured in the following ways:

• Certified electric utilities
• Distribution, generation and transmission electric cooperatives
• Federally-recognized Tribes as determined by the Federally Recognized Indian Tribe List Act of 1994.
• Alaska Native Corporations as determined in the Alaska Native Claims Settlement Act
• For-profit organizations
• Nonprofit organizations
• State or local governments

What is an eligible area?

Eligible Service Areas:

• Electricity generated or stored from facilities shall be provided to “rural and nonrural residents” in eligible service areas.
• Rural Percentage of the service territory. For the purpose of this notice, the minimum rural percentage by the chosen methodology must be at least 50%, unless otherwise approved by the Administrator based upon a showing that there exists significant energy burdens, severe economic needs, or substantial added benefits to rural consumers. The rural percentage will be calculated at the applicant’s choosing by either: 
  • The population located in the rural areas of a service territory versus the total population of the entire service territory.
  • Meters served in the rural areas of a service territory versus meters served in the entire service territory.
• Rural Determination. If a PART Applicant is not a current or former RUS or Rural Electrification Act (REA) Borrower, a rural determination will be conducted by RUS in order to:
  • Identify the service territory where electricity from the facilities to be financed by PART Award would be delivered and consumed.
  • Further identify those areas within the service territory that are rural.

Project Eligibility:

• Projects can be developed by eligible applicants developing new renewable power generation eligible under this notice from Renewable Energy Resource (RER) and Energy Storage Systems (ESS) for use by off-takers through a Power Purchase Agreement (PPA) or a financial guarantee that ensures financial feasibility.
• New facilities that generate electricity from an RER, including facilities that store electricity that support such assets. However, RUS will not approve facilities that violate the terms of a PART applicant’s existing wholesale power contract.
• New linear facilities, including microgrids, and equipment that are necessary to operate the project including, but not limited to, transformers, transmission or distribution facilities that are needed to export, transmit, and deliver power from the generating facility to the off-taker.
• The upgrading of existing linear facilities and equipment that are necessary to operate the Project including, but not limited to, transformers, transmission or distribution facilities that are needed to export, transmit, and deliver power from the generating facility to the off-taker.
• The project may include one or more RERs and/or ESSs eligible under this Notice of Funding Opportunity (NOFO).
• Facilities may be co-located to operate interconnectedly or independently or constructed at separate sites.
• RERs and ESSs must be installed so that the RER can provide energy and any ancillary services for resale to rural and nonrural residents located in eligible service areas.
• Applicants can request interconnection and other costs associated with being able to deliver the RER and/or the ESS to off-takers, including related microgrid investments. Successful applicants may also recover a portion of their capitalizable pre-application costs pursuant to 7 CFR part 1767 and this notice.
• Applicant may include in its loan application the costs specified in 7 CFR 106, including interest during construction (IDC) pursuant to 7 CFR 1710.106(a)(4).
• Forbearance. Requests for forbearance periods will not be entertained if such period exceeds six months.

Funding can be used to:

• Build new electric generation facilities using hydropower, geothermal and/or biomass technologies to generate power and/or or energy storage systems that will be charged by a hydropower, geothermal, biomass, wind or solar power sources.
• Generation and/or energy storage projects can include the construction of new or upgraded linear facilities and equipment necessary to operate the eligible power generation project. These components can include, but are not limited to, transformers, transmission or distribution facilities that are needed to export, transmit, and deliver power from the eligible generating or storage facility to the Off-Taker as well as interconnection expenses and other costs incurred to deliver eligible electricity and eligible pre-application expenses.

What kind of funding is available?

Approximately $410 million in budget authority through September 30, 2031.

RUS may, at its discretion, increase the total level of funding available in this funding round from any available source provided the awards meet the requirements of the statute which made the funding available to the agency. The agency may also choose to obligate fewer funds if in the sole judgement of the agency there are not a sufficient number of high-quality applications.

Minimum Award Amounts: The minimum amount of any individual Award is $1 million.

Maximum Award Amounts: The maximum loan amount, inclusive of the forgivable portion, of any individual Award is limited to $100 million. Additionally, the combined total of any prior Powering Affordable Clean Energy (PACE) Award and PART Award may not exceed $100 million.

We offer two types of loans:

1. Project Loan:
   Project loans are used to finance specific projects.
   • The loan will be secured and backed by the project’s assets and revenue generated from the assets.
   • The applicant may need to provide extra cash reserves.
   • With the off-takers’ permission, if there is a power purchase agreement, it must be assigned to the agency as security.
   • Tax credits or direct payments may count toward the applicant’s required investment, but we may require extra support until those tax benefits are received.
   • Under Section 306F of the RE Act, the agency may finance up to 100% of project costs in certain Substantially Underserved Trust Areas (SUTA).
   • Funding will only be released after commercial operations of the project have started and we have confirmed the awardee has met all other requirements.
2. System Loans:
   System Loans are only available to currently operating electric utilities.
   • System loans may cover up to 100% of project costs if financially feasible.
   • The applicant must provide RUS with a perfected senior lien, meaning, RUS has the first legal claim on all of applicant’s assets. This includes real property (such as land and buildings), personal property (such as equipment and vehicles), intangible assets (such as account receivable) and after-acquired property (assets the applicants purchases in the future.)
   • Generation and transmission suppliers may secure the loan through an indenture if the agency gets a first‑priority interest through the trustee.
   • Funds can be used to finance construction, but loan forgiveness happens only after the project is finished and all requirements are met.

What are the loan terms?

Maturity of a PART loan will be the lesser of:

• The expected useful life of the project
• The term of the PPA (if required for execution between the PART 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 PART Applicant)
• The expiration dates of power sales contracts between the PART Applicant and its members should the PART Applicant provide the power supply needs of the members under such power sales contracts
• The loan term requested by the PART Applicant
• 35 years

The length of the loan will be the lesser of the:

• Useful life of the project
• Term of the power purchase agreement, if one is required
• Term of land lease, if the applicant does not own the land
• Expiration dates of power sales contracts, if applicable
• Number of years the applicant requests
• 35 years

How do we get started?

• Letter of Interest (LOI) Submissions. LOIs must be submitted beginning at 11:59 a.m. Eastern Time (ET) on September 8, 2026, and until 11:59 a.m. ET on October 9, 2026. LOI will not be accepted after 11:59 a.m. ET on October 9, 2026.
   
• Application Submissions. A LOI submitter that receives an Invitation to Proceed will have 60 days, or a time agreeable to the agency, to complete and submit its loan application. If the deadline to submit the 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. In extending an Invitation to Proceed to a LOI submitter in the queue, RUS reserves the right to meet overall RUS program objectives and therefore may notify the PART Applicant that the amount of financing to be Awarded is below the level sought by the PART Applicant.
   
• RUS reserves the right to ask PART Applicants for clarifying information on, or additional information related to, the LOI or application.

The Rural Utilities Service reserves the right to ask applicants for clarifying information on, or additional information related to, their letter of interest or application.

Who can answer questions?

SM.RD.RUS.PART-Questions@usda.gov or General Field Representatives in your state.

What governs this program?

• Section 22001 of the Inflation Reduction Act, (IRA) Public Law 117-169
• Section 317 of the Rural Electrification Act of 1936,7 S.C. 940g (REA)
• 7 S.C. 8103,/node/12216
• 7 CFR parts 1700-1730, 1767, 1773, and 1787, and 7 CFR part 1b