Fertilizer Product Expansion Program

 

The purpose of FPEP is to expand capacity, improve competition, and increase supply chain resilience within the agricultural fertilizer and nutrient management sector, in connection with the production of agricultural commodities. To meet its purpose, FPEP will support the production of agricultural commodities through the manufacturing and processing of fertilizer and nutrient alternatives that are: Independent and outside the dominant fertilizer suppliers. The goal is to increase competition. Consequently, entities that hold a market share (in either manufacturing, processing, or distribution) that is greater than or equal to the entity that holds the fourth largest share of the market for nitrogen, phosphate, or potash, as applicable, will not be considered for funding; Made in America - Produced in the U.S. by companies located in the U.S. and territories, creating good-paying jobs at home, and reducing the reliance on potentially unstable or inconsistent foreign supplies; Innovative To improve upon fertilizer production methods and efficient-use technologies to jump start the next generation of fertilizers and nutrient alternatives; Sustainable - Reduces the greenhouse gas impact of transportation, production, and use through renewable energy sources, feedstocks, formulations, and incentivizing greater precision in fertilizer use; and Farmer-focused - a driving factor will be making sure the additional capacity supported by USDA is dedicated to U.S. agricultural commodity production.

General information about this opportunity
Last Known Status
Active
Program Number
10.383
Federal Agency/Office
Rural Business-Cooperative Service, Department of Agriculture
Type(s) of Assistance Offered
B - Project Grants
Program Accomplishments
Not applicable.
Authorization
5 U.S.C U.S.C. 714c(b)
Who is eligible to apply/benefit from this assistance?
Applicant Eligibility
Not applicable.
Beneficiary Eligibility
Not applicable.
Credentials/Documentation
Only electronic applications may be submitted via Grants.gov in response to this RFA. Applicants are urged to submit applications early to the Grants.gov system. For an overview of the Grants.gov application process, see Grants.gov, Apply for Grants webpage. The RFA contains the information needed to obtain and complete required application forms and RD-specific attachments.
What is the process for applying and being award this assistance?
Pre-Application Procedure
Preapplication coordination is not applicable.
Application Procedure
2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. Electronic applications are submitted via Grants.gov. Applicants are urged to submit applications early to the Grants.gov system. For an overview of the Grants.gov application process, see Grants.gov, Apply for Grants webpage.
Award Procedure
Successful applicants will receive a signed notice of Federal award, containing instructions on requirements necessary to proceed with execution and performance of the award.
Deadlines
This RFA provides two application submission windows. Applicants must submit applications via Grants.gov. Applications must be received by 11:59 pm Eastern Time (ET) on: o 45 days after the date of posting, for applicants requesting financial assistance to contribute to the purpose of the program. Priority will be given to projects that increase the availability of fertilizer (nitrogen, phosphate or potash) and nutrient alternatives to agricultural producers for use in crop years 2023 and 2024; and o 90 days after the date of posting, for applicants requesting financial assistance to contribute significantly to the purpose of the program.
Approval/Disapproval Decision Time
From 60 to 90 days.
Appeals
From 90 to 120 days.
Renewals
Not applicable.
How are proposals selected?
1. Financial Viability, Technical Merit, and Readiness Applicants must describe in the project narrative, the strength of their proposed project and how the project will achieve financial viability, technical feasibility, and readiness. 2. Market Impact & Opportunities Applicants must describe any plans to procure inputs and provide more product opportunities for producers relative to the existing fertilizer products and to relevant improvements in market access. Applicants may describe any commitments from agricultural producers as input providers or as end users and potential buyers. 3. Climate Impacts & Sustainability Describe how the project will reduce the impacts of climate change through the manufacturing and processing of or the use of sustainable, innovative, increased, and efficient fertilizer and nutrient alternatives fertilizer and nutrient production and use. Include listing of assumptions and methodologies to support such assumptions. 4. Regional Impact & Support Applicants must support of their proposed project as well as any strategies to generate regional support. Applicants should also include information about the scale and scope of any commitments (financial, infrastructure, workforce or otherwise) provided by other Federal, Tribal, State, or local governments, either directly or indirectly. The scale and scope of any commitments or contributions from other third parties should also be discussed. 5. Personnel Applicants must describe key personnel involved with the project. Applications will be awarded priority based on how key personnel will contribute to the likelihood of project success, including but not limited to their leadership's qualifications, training, and experience. Experience of key personnel will be assessed in relation to the scale of the project and the type of the operation. Additional priority will be awarded to applicants that thoroughly describe in narrative and provide resumes and supporting documentation. 6. Discretionary Points During Administrative Agency Review, discretionary points may be assigned by the RBCS Administrator to ensure the diversity of applications, including geographic diversity and size and scale of projects. The Biden-Harris Administration issued EO 14036 on "Promoting Competition in the American Economy" in July 2021 and is committed to selecting a variety of projects such that relevant sectors have
How may assistance be used?
An applicant selected for this grant must use funds for the purpose of increasing or otherwise expanding the manufacturing and processing of fertilizer and nutrient alternatives and their availability in the United States. Additionally, the fertilizer and nutrient alternatives addressed in the application must be for agricultural use. Within such a project, eligible uses of grant funds would include, but are not limited to: • Construction of a new facility or purchase of an existing facility for purposes of expanding capacity or increasing output, including the purchase of land; • Pre-development costs including, but not limited to, engineering and other professional fees; • Working capital to support expanded capacity or increased outputs; • Modernizing or expanding an existing facility, including expansion and modifications to existing buildings and construction of new buildings at existing facilities; • Purchasing new, or modernizing existing processing and manufacturing equipment; • Developing, customizing, and installing equipment, devices, and technology that improves processing functions, worker conditions, or safety; • Modernizing, developing, customizing, and installing climate‐smart equipment that reduces greenhouse gas emissions, increases fertilizer use efficiency, improves air and water quality, or meets one or more of USDA’s climate action goals; • Ensuring compliance with packaging and labeling requirements under applicable law (including sealing, packaging, boxing, labeling, conveying, and product moving equipment); • Ensuring compliance with occupational and other safety requirements under applicable law; • Engaging in workforce recruitment, training, apprenticeships, and retention to ensure expansion projects will be adequately staffed and crewed and offer opportunities to workers; or • Improving fertilizer and nutrient alternatives logistics (for example: distribution, transportation, and storage) to benefit producers in a cost-efficient manner.
What are the requirements after being awarded this opportunity?
Reporting
Not applicable.
Auditing
Not applicable.
Records
Records associated with the project are required to be maintained for 3 years from final completion.
Other Assistance Considerations
Formula and Matching Requirements
Statutory formula is not applicable to this assistance listing.

Matching is mandatory. 40%. Grant requests of less than $5 million have a 40 percent matching fund requirement. For example, a sustainable fertilizer project with total eligible costs of $1.67 million could request grant funds of $1 million and would be required to provide approximately $670,000 in matching funds. Grant requests of $5 million or greater (up to the maximum grant request of $100 million) have a 75 percent matching fund requirement. For example, a sustainable fertilizer construction project with total eligible costs of $133.3 million could request grant funds of $33.3 million and would be required to provide approximately $100 million in matching funds.

MOE requirements are not applicable to this assistance listing.
Length and Time Phasing of Assistance
Projects may be between one and five years in duration. The maximum period of performance for this grant is 60 months with up to 24 months of no-cost extensions considered on a case-by-case basis. Anticipated start dates are Fall 2022 for successful candidates submitting in the first application window and Spring 2023 for all other successful candidates. There are two options for obtaining grant disbursement under FPEP. a. Grant funds will be disbursed in full after the project is completed and a valid grant of inspection (Federal or equivalent) is provided to RBCS. If this option is utilized, RBCS will modify and make applicable the construction planning and performing development requirements at 7 CFR 4280.125. b. Grant funds will be disbursed on a reimbursement basis through 90 percent of grant disbursement. The final 10 percent of grant funds will be held until construction or installation of the project is completed and a valid grant of inspection (Federal or equivalent) is provided to RBCS. If this option is utilized, RBCS will follow the construction planning and performing development requirements at 7 CFR 4280.125.
Who do I contact about this opportunity?
Regional or Local Office
RD website: www.rd.usda.gov/fpep Email Questions: fpep@usda.gov
Headquarters Office
Anthony Crooks
Room 5815-S, STOP 3225
Washington, DC 20410 USA
fpep@usda.gov
Phone: 202-205-9322
Website Address
https://www.rd.usda.gov/programs-services
Financial Information
Account Identification
12-1500-0-1-351
Obligations
(Project Grants) FY 22$0.00; FY 23 est $250,000,000.00; FY 24 Estimate Not Available FY 21 Estimate Not Available - It is not known if more funds will be obligated.(Project Grants) FY 22$0.00; FY 23 est $250,000,000.00; FY 24 FY 21 Estimate Not Available -
Range and Average of Financial Assistance
The minimum award amount is $1 million and the maximum award amount is $100 million.
Regulations, Guidelines and Literature
Freedom of Information Act (FOIA) of 1966 (5 U.S.C. ? 552), Privacy Act of 1974 (5 U.S.C. ? 552a), National Environmental Policy Act
Examples of Funded Projects
Not applicable.

 



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