The American Public Power Association recently filed comments in response to a Notice of Proposed Rulemaking (NOPR) issued by the Office of Management and Budget (OMB).
In the NOPR, OMB proposed a series of new guidelines for federal funding assistance. The proposal would streamline some aspects of federal funding opportunities while also giving agencies more discretion to cancel projects if they do not align with administration priorities. The proposed guidelines would also add reporting requirements to grant funding.
In the comments, APPA expressed support for the aspects of the NOPR which would streamline the application process and remove unnecessary duplication. In particular, the comments applauded the encouragement to use more plain language in Notices of Funding Opportunity (NOFO), as well as allowing longer posting times.
APPA expressed concern that certain provisions would create new burdens for applicants and recipients of federal funding.
OMB proposes to eliminate the use of fixed amount awards, which could deter small utilities from applying for federal funding. The comments also noted that the wider agency discretion to cancel awards would create financial uncertainty for recipients while providing little recourse to appeal agency determinations.
Considering most projects take multiple years to complete, abrupt cancellation would leave public power utilities with stranded assets and an inability to efficiently and safely interconnect load.
The comments also ask OMB to clarify its domestic-preference language, observing that some utilities have expressed confusion around some of the provisions of the Build America, Buy America (BABA) requirements.
APPA also recommended that requirements should be flexible and based on realistic appraisals of product availability and potential supply chain constraints.
