SECTION 3. SCOPE AND

GENERAL APPLICATION REQUIREMENTS

.01 Scope . This Notice solicits applications for volume cap allocations for projects to be owned by governmental bodies, cooperative electric companies, and public power providers. Allocations that the IRS makes under this Notice for projects to be owned by governmental bodies and cooperative electric companies and that the issuer forfeits or that otherwise revert

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to the IRS will be available for reallocation under this Notice. Allocations under this Notice for projects to be owned by public power providers and that the issuer forfeits or that otherwise revert to the IRS are expected to be reallocated as part of an allocation process to be announced by the IRS in future administrative guidance that generally follows the process set forth in this Notice, subject to such changes or modifications that are announced by the IRS in such future administrative guidance. For a similar supplemental announcement regarding reallocations of volume cap, see Announcement 2010–54, 2010–2 C.B. 386 (September 20, 2010). .02 Application Requirements . Each application for an allocation of the New CREBs volume cap under § 54C submitted pursuant to this Notice (Application) must be prepared and submitted in accordance with this section 3.02. By submitting an Application, the applicant agrees to comply with the requirements of this Notice. For an Application to comply with this Notice, among other things, the Application must be prepared in substantially the same format as the form (including exhibits thereto) attached to this Notice as Appendix A. This Notice, including Appendix A, may be found electronically under the link “TEB Published Guidance” on the IRS web site at http://www.irs.gov/ Tax-Exempt-Bonds.

a. Qualified issuer . The Application must be submitted by a qualified issuer (Applicant) within the meaning of § 54C(d)(6). For this purpose, a “qualified issuer” includes a “public power provider,” a “cooperative electric company,” a “governmental body,” a “clean renewable energy bond lender,” and a “not-forprofit electric utility which has received a loan or loan guarantee under the Rural Electrification Act.” For further information on these definitions, see Section 2 of the Application included in Appendix A to this Notice. The Application must identify the Applicant, including the Applicant’s Federal tax identification number, and include a certification that the Applicant is a qualified issuer within the meaning of § 54C(d)(6).

b. Signatures . The Application must be signed and dated by an authorized official of the Applicant. For purposes of the Application, the term “authorized official of

the Applicant” means an officer, board member, employee, or other official of the Applicant who is duly authorized to execute legal documents on behalf of the Applicant in connection with incurring debt of the Applicant (for example, a mayor, chairperson of a city council, chairperson of a board of directors, county or city administrator or manager, chief executive officer, or chief financial officer) similar to the kind of duly authorized official who would be authorized to execute documents in connection with an issuer’s declaration of official intent to reimburse expenditures from the proceeds of a borrowing under § 1.150–2(e) of the Income Tax Regulations.

c. Contact person . The Application must designate one or more persons with knowledge of the project that the Applicant duly authorizes to discuss with the IRS any information relating to the Application. The designation must include the designee’s name, title, telephone number, fax number, and mailing address. If a designee is not an official or officer of the Applicant, the Application must include an executed Form 8821 (Taxpayer Information Authorization) or Form 2848 (Power of Attorney and Declaration of Representative) authorizing the disclosure of taxpayer information specifically relating to the Application to the designee.

d. Address for submissions . The Application must be submitted by hard copy accompanied by a copy of the Application in PDF format on a CD and sent (by U.S. Postal Service or designated private delivery services) to the Internal Revenue Service (IRS), SE:T:GE:TEB:CPM, Attention: Kenneth Stengel, 1122 Town & Country Commons, Chesterfield, MO 63017.

e. Project description . The Application must contain the information required by this section 3.02.e. Applicants receiving an allocation of volume cap may use proceeds of the New CREBS (proposed bonds) only to finance the costs of the project (as defined in section 3.02.e.(i) of this Notice) described in the Application and related eligible expenditures (as permitted under §§ 54A and 54C)) with certain permitted deviations (as provided in section 7 of this Notice).

(i) Qualified project . The Application must describe in reasonable detail the qualified renewable energy facility or fa

cilities constituting the project to be financed with the proceeds of the New CREBs. The Application must include a certification that each facility in the project will constitute a “qualified renewable energy facility” under § 54C(d)(1). The Application must indicate the expected date that the acquisition or construction of each facility in the project will commence and the expected date that each facility in the project will be placed in service. Property owned by a qualified owner that is functionally related and subordinate (as determined under § 1.103–8(a)(3)) to any qualified renewable energy facility described in § 54C(d)(1) may be financed as part of the facility.

(ii) Certification of engineer . The Application must contain a certification by an independent, licensed engineer that each facility in the project will meet the requirements for a “qualified facility” under the applicable provisions of § 45(d) (but without regard to § 45(d)(8) and (10) and without regard to any placed in service date or associated construction commencement date), and that each facility, upon being placed in service, is reasonably expected to produce electricity.

(iii) Qualified owner —(A) In general . Each Application must identify the expected owner of the project and include a certification with respect to the project stating whether the entity that will own the project is a public power provider, governmental body, or cooperative electric company. For purposes of this Notice, the term “qualified owner” means a public power provider, a governmental body, or a cooperative electric company within the meaning of § 54C(d)(2), (3), and (4), respectively. For purposes of this Notice, a “qualified owner” includes any entities that are members of the same controlled group (within the meaning of § 1.150– 1(e)) as the qualified owner. Joint ownership of qualified renewable energy facilities financed with New CREBs will be recognized in a manner similar to the recognition of joint ownership of output projects under the private activity bond restrictions on tax-exempt bonds under § 141. Applications for volume cap for projects to be owned by governmental bodies or cooperative electric companies must include a certification that the expected qualified owner of the project is

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not a public power provider under § 54C(d)(2).

(B) Entities eligible under multiple owner categories . Except as otherwise provided in section 3.02.e.(iii)(C) of this Notice, if the expected qualified owner of the project is described in more than one category of qualified owners under § 54C(d)(2), (3) or (4), the Application must identify only one such category for which it is seeking volume cap for the project.

(C) Public power providers ineligible for volume cap designated for governmen- tal bodies or cooperative electric compa- nies . An entity that is a “public power provider” under § 54C(d)(2) is ineligible to receive volume cap designated for projects to be owned by governmental bodies or cooperative electric companies.

(iv) Project cost . The Application must describe the reasonably expected costs of the project. The Applicant must certify that none of the reasonably expected costs of the project to be financed with New CREBs issued pursuant to the allocation were included in a previous application or, if the costs were included in a previous application, that (1) the IRS has been notified that such application has been withdrawn, or (2) that any previous allocation for those costs reverted to the IRS.

(v) Location of project . The Application must identify the location of the project.

(vi) Approvals . The Application must state that all required Federal, State, and local approvals (regulatory and otherwise) for the project, the proposed bonds, and any other required financing for the project have been obtained or, if any approvals have not yet been obtained, the Application must include a certification that the Applicant reasonably expects to receive all required approvals in time to permit issuance of the proposed bonds before the expiration of the volume cap allocation set forth in section 5.e. of this Notice. The Application must identify any required approvals that have not been obtained and must describe the Applicant’s plan and expected time frame for obtaining such approvals.

f. Plan of financing . The Application must contain a reasonably detailed description of the plan of financing for the project, including (1) the amount of New

CREBs expected to be issued together with a description of how proceeds of such bonds will be allocated to the project, (2) any other reasonably expected sources of financing for the project together with a description of how such financing will be allocated to the project, and (3) documentation from an independent third party who is knowledgeable about the marketability of municipal bonds evidencing that the proposed bonds are reasonably expected to be marketed prior to the expiration of the volume cap allocation set forth in section 5.e. of this Notice. Documentation that may be used to meet requirement (3) under this section 3.02.f. includes the following: a bond purchase commitment letter from an investor; a credit enhancement commitment letter from a financial institution; a letter from an underwriter or financial advisor to the effect that the sale of the proposed bonds is likely to be completed in time to permit issuance of the proposed bonds before the expiration of the volume cap allocation for the proposed bonds; documentation similar to the foregoing documentation; or a combination of the foregoing documentation. If the owner expects to use the proceeds of New CREBs to reimburse amounts that the owner paid with respect to a qualified project, the Application must include a certification that the requirements under § 54A(d)(2)(D) will be met before any such reimbursement is made.

g. Compliance with Federal tax laws . The Application must include a certification that the Applicant reasonably expects that the proposed bonds will meet the applicable requirements of §§ 54A and 54C and that the Applicant has engaged bond counsel to render an opinion to the effect that the proposed bonds will meet those requirements.

h. Dollar amount of allocation re- quested . The Application must specify the dollar amount of the volume cap requested, not to exceed the amount of the proposed bonds.

i. Demonstration of readiness to issue . The Application must include a certification that the Applicant reasonably expects to issue the proposed bonds prior to the expiration of the volume cap allocation described in section 5.e. of this Notice.

j. Certain forfeitures of volume cap . The IRS may take into account whether

volume cap previously allocated to the Applicant under this Notice was forfeited or expired. The Application must include either (1) a certification that no previous forfeitures or expirations of volume cap occurred with respect to volume cap allocated under this Notice or (2) identify any allocation of volume cap previously received by the Applicant under this Notice and, if such allocation, or any part thereof, was forfeited or expired, provide an explanation of the reasons for such forfeiture or expiration.

k. Required declaration in application . The Application and all subsequent submissions made in connection with the Application must include the following declaration signed and dated by an authorized official of the Applicant (described in section 3.02.b. of this Notice):

I hereby certify that I am an authorized officer or official of the Applicant, that I am duly authorized to execute legal documents on behalf of the Applicant in connection with incurring debt, and that I am duly authorized to execute legal documents on behalf of the Applicant in making this Application. Under penalties of perjury, I declare that (i) I have knowledge of the relevant facts and circumstances relating to this Application and the project(s) described herein, and (ii) I have examined this Application and the supporting documents, including any supplemental submission, and to the best of my knowledge and belief, all of the facts contained in this Application, any supplemental submission, and the supporting documents are true, correct, and complete.