[Federal Register: January 23, 2004 (Volume 69, Number 15)]
[Notices]
[Page 3317-3329]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr23ja04-27]
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DEPARTMENT OF AGRICULTURE
Rural Utilities Service
Assistance to High Energy Cost Rural Communities
AGENCY: Rural Utilities Service, USDA.
ACTION: Notice of funding availability (NOFA).
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SUMMARY: The Rural Utilities Service (RUS) of the United States
Department of Agriculture (USDA) announces the availability of $11.3
million in competitive grants to assist communities with extremely high
energy costs. This grant program is authorized under section 19 of the
Rural Electrification Act of 1936 (RE Act). The grant funds may be used
to acquire, construct, extend, upgrade, or otherwise improve energy
generation, transmission, or distribution facilities serving
communities in which the average residential expenditure for home
energy exceeds 275 percent of the national average. Eligible applicants
include persons, States, political subdivisions of States, and other
entities organized under State law. Federally-recognized Indian tribes
and tribal entities are eligible applicants. This notice describes the
eligibility and application requirements, the criteria that will be
used by RUS to award funding and information on how to obtain
application materials and how prior applicants may request
reconsideration of existing applications under this program.
DATES: All applications must be postmarked or delivered to RUS or
through Grants.gov no later than March 5, 2004. Applications will be
accepted on publication of this notice. Comments regarding the
information collection requirements under the Paperwork Reduction Act
must be received on or before March 23, 2004, to be assured of
consideration.
ADDRESSES: Paper applications are to be submitted to the Rural
Utilities Service, U.S. Department of Agriculture, 1400 Independence
Avenue, SW., STOP 1560, Room 5165, South Building, Washington, DC
20250-1560.
[[Page 3318]]
Applications should be marked ``Attention: High Energy Cost Community
Grant Program.'' Information on submitting applications electronically
is available through http://www.Grants.gov. Applicants must
successfully pre-register with Grants.gov to use the electronic
applications option; application information may be downloaded without
pre-registration.
FOR FURTHER INFORMATION CONTACT: Karen Larsen, Management Analyst, U.S.
Department of Agriculture, Rural Utilities Service, Electric Program,
1400 Independence Avenue, SW., STOP 1560, Room 5165, South Building,
Washington, DC 20250-1560. Telephone (202) 720-9545, Fax (202) 690-
0717, e-mail energy.grants@usda.gov.
SUPPLEMENTARY INFORMATION:
Overview Information
Federal Agency Name: United States Department of Agriculture, Rural
Utilities Service, Assistant Administrator, Electric Program.
Funding Opportunity Title: Assistance to High Energy Cost Rural
Communities.
Announcement Type: Initial announcement.
Funding Opportunity Number: USDA-RD-RUS-HECG03-1
Catalog of Federal Domestic Assistance (CFDA) Number: 10.859. The
CFDA title for this program is ``Assistance to High Energy Cost Rural
Communities.''
Dates: Applications must be postmarked or filed with Grants.gov by
March 5, 2004.
I. Funding Opportunity Description
RUS is making available $11.3 million in competitive grants under
section 19 of the Rural Electrification Act of 1936 (the ``RE Act'') (7
U.S.C. 918a). Under section 19, RUS is authorized to make grants to
``acquire, construct, extend, upgrade, and otherwise improve energy
generation, transmission, or distribution facilities serving
communities in which the average residential expenditure for home
energy is at least 275 percent of the national average residential
expenditure for home energy.''
The purpose of this grant program is to provide financial
assistance for a broad range of energy facilities, equipment and
related activities to offset the impacts of extremely high residential
energy costs on eligible communities. Grant funds may be used to
``acquire, construct, extend, upgrade and otherwise improve energy
generation, transmission, or distribution facilities'' serving
extremely high energy cost communities. Eligible facilities include on-
grid and off-grid renewable energy systems and implementation of cost-
effective demand side management and energy conservation programs that
benefit eligible communities.
Eligible applicants include ``persons, States, political
subdivisions of States, and other entities organized under the laws of
States.'' Under section 13 of the RE Act (7 U.S.C. 913) ``the term
person shall be deemed to mean any natural person, firm, corporation,
or association.'' Indian tribes and tribal entities are eligible
applicants and beneficiaries under this program.
No cost sharing or matching funds are required as a condition of
eligibility under this grant program. However, RUS will consider other
financial resources available to the grantee and any voluntary
commitment of matching funds or other contributions in assessing the
grantee's capacity to carry out the grant program successfully and will
award additional evaluation points to proposals that include such
contributions.
As a further condition of each grant, section 19 (b)(2) of the RE
Act requires that planning and administrative expenses may not exceed 4
percent of the grant funds.
This NOFA provides an overview of the grant program, eligibility
and application requirements, and selection criteria. Applicants should
consult the detailed grant Application Guide for additional information
on application requirements and copies of all required forms and
certifications. The Application Guide is available on the Internet from
the RUS Web site at http://www.usda.gov/rus/electric. The application
guide may also be requested from the Agency contact listed in the FOR
FURTHER INFORMATION CONTACT section of this notice.
Definitions
As used in this NOFA:
Administrator means the Administrator of the RUS.
Agency means the Rural Utilities Service.
Application Guide means the Application Guide prepared by RUS for
the High Energy Cost Grant program containing detailed instructions for
determining eligibility and preparing grant applications, and copies of
required forms, questionnaires, and model certifications.
Census block means the smallest geographic entity for which the
Census Bureau collects and tabulates decennial census information and
which are defined by boundaries shown on census maps.
Census designated place (CDP) means a statistical entity recognized
by the U.S. Census comprising a dense concentration of population that
is not within an incorporated place but is locally identified by a name
and with boundaries defined on census maps.
Extremely high energy costs means local community average
residential energy costs that are at least 275 percent of one or more
home energy cost benchmarks identified by RUS based on the national
average residential energy expenditures as reported by the Energy
Information Administration (EIA).
Home energy means any energy source or fuel used by a household
including electricity, natural gas, fuel oil, kerosene, liquefied
petroleum gas (propane), other petroleum products, wood and other
biomass fuels, coal, wind, and solar energy. Fuels used for subsistence
activities in remote rural areas are also included. Other
transportation fuel uses are not included, however.
Home energy cost benchmarks means the criteria established by RUS
for eligibility as an extremely high energy cost community. Home energy
cost benchmarks are calculated for total annual household energy
expenditures; total annual expenditures for individual fuels; annual
average per unit energy costs for primary home energy sources at 275
percent of EIA estimates of national average residential energy
expenditure.
Indian Tribe means a Federally recognized tribe as defined under
section 4 of the Indian Self-Determination and Education Assistance Act
(25 U.S.C. 450b) to include `` * * * any Indian tribe, band, nation, or
other organized group or community, including any Alaska Native village
or regional or village corporation as defined in or established
pursuant to the Alaska Native Claims Settlement Act (85 Stat. 688) [43
U.S.C. 1601 et seq.], which is recognized as eligible for the special
programs and services provided by the United States to Indians because
of their status as Indians.''
Person means any natural person, firm, corporation, or association
and for purposes of this notice, includes Indian tribes and tribal
entities.
Primary home energy source means the energy source that is used for
space heating or cooling, water heating, cooking, and lighting. A
household or community may have more than one primary home energy
source.
State rural development initiative means a rural economic
development program funded by or carried out in cooperation with a
State agency.
[[Page 3319]]
Target area means the geographic area to be served by the grant.
Target community means the unit or units of local government in
which the target area is located.
Tribal entity means a legal entity that is owned, controlled,
sanctioned, or chartered by the recognized governing body of an Indian
tribe as defined in this NOFA.
II. Award Information
The total amount of funds available for grants under this notice is
$11.3 million. The maximum amount of grant assistance that will be
considered for funding in a grant application under this notice is
$5,000,000. The minimum amount of assistance for a grant application
under this program is $75,000. The number of grants awarded under this
NOFA will depend on the number of applications submitted, the amount of
grant funds requested, and the quality and competitiveness of
applications submitted. In response to the NOFA published December 9,
2002 [67 FR 72904], RUS selected 9 projects for funding. The grant
awards ranged from $173,000 to $3,775,000.
The funding instrument available under this NOFA will be a grant
agreement. Grants awarded under this notice must comply with all
applicable USDA and Federal regulations concerning financial
assistance, with the terms of this notice, and with the requirements of
section 19 of the RE Act. Grants made under this NOFA will be
administered under and are subject to USDA financial assistance
regulations at 7 CFR parts 3015, 3016, 3017, 3018, 3019, and 3052, as
applicable. The award period will generally be for 36 months, however,
longer periods may be approved depending on the project involved.
Projects that were selected for funding under the December 9, 2002,
NOFA will not be considered for additional funding under this Notice.
Applicants that submitted project application packages during the prior
round that were not selected for funding may request reconsideration of
their proposals under this NOFA.
All timely submitted and complete applications will be reviewed for
eligibility and rated according to the criteria described in this NOFA.
Applications will be ranked in order of their numerical scores on the
rating criteria and forwarded to the RUS Administrator. The
Administrator will review the rankings and the recommendations of the
rating panels. The RUS Administrator will then fund grant applications
in rank order.
RUS reserves the right not to award any or all the funds made
available under this notice, if in the sole opinion of the
Administrator, the grant proposals submitted are not deemed feasible.
RUS also reserves the right to partially fund grants if grant
applications exceed the available funds. RUS will advise applicants if
it cannot fully fund a grant request.
III. Eligibility Information
1. Eligible Applicants
Under Section 19 eligible applicants include ``persons, States,
political subdivisions of States, and other entities organized under
the laws of States'' (7 U.S.C. 918a). Under section 13 of the RE Act,
the term ``person'' means ``any natural person, firm, corporation, or
association'' (7 U.S.C. 913). Examples of eligible applicants include:
for-profit and nonprofit organizations, including corporations,
associations, partnerships (including limited liability partnerships),
cooperatives, trusts, and sole proprietorships; State and local
governments, counties, cities, towns, boroughs, or other agencies or
units of State or local governments; Indian tribes, other tribal
entities, Alaska Native Corporations; and individuals.
An individual is an eligible applicant under this program, however,
the proposed grant project must provide community benefits and not be
for the sole benefit of an individual applicant.
All applicants must demonstrate the legal capacity to enter into a
binding grant agreement with the Federal Government at the time of the
award and to carry out the proposed grant funded project according to
its terms.
Effective October 1, 2003, all applicants for Federal grants with
the exception of individuals other than sole proprietorships must have
a Dun and Bradstreet (D&B) Data Universal Numbering System (DUNS)
number. Consistent with this new Federal policy directive, any
organization that applies for an RUS high energy cost grant, including
entities seeking reconsideration of prior applications, must use their
DUNS number on the application and the revised SF 424, ``Application
for Federal Assistance.'' DUN's numbers are available without charge to
Federal Grant applicants. Information on how to obtain a DUNS number
and the new Federal requirement on DUNS numbers is available at http://www.whitehouse.gov/omb/grants/duns_num_guide.pdf
.
If you already have obtained a DUNS number in connection with the
Federal acquisition process or requested or had one assigned to you for
another purpose, you should use that number on all of your
applications. It is not necessary to request another DUNS number from
D&B.
If you know you do not have a DUNS number or if you are not sure if
you have a DUNS number, you should call D&B using the toll-free number,
1-866-705-5711 between the hours of 8 a.m. to 6 p.m. (local time of the
caller when calling from within the continental United States) and
indicate that you are a Federal grant applicant or prospective
applicant. D&B will tell you if you already have a number. If you do
not have a DUNS number, D&B will ask you to provide the information
listed below and will immediately assign you a number, free of charge.
The process to request a number over the telephone takes about 5-10
minutes. D&B will immediately assign you a number, free of charge at
the conclusion of the call. You will need to provide the following
information required to obtain a DUNS number:
[sbull] Legal name of your organization.
[sbull] Headquarters name and address for your organization.
[sbull] Doing business as (DBA) or other name by which your
organization is commonly known or recognized.
[sbull] Physical address, city, State and zip code.
[sbull] Mailing address (if separate from headquarters and/or
physical address).
[sbull] Telephone number.
[sbull] Contact name and title.
[sbull] Number of employees at your physical location.
You may also request a DUNS number over the Internet from http://www.dnb.com
, however, it may take up to 30 days to process your
request, and therefore it is strongly recommended that Federal grant
applicants use the telephone application process.
2. Cost Sharing and Matching
No cost sharing or matching funds are required as a condition of
eligibility under this grant program. However, RUS will consider other
financial resources available to the grantee and any voluntary
commitment of matching funds or other contributions in assessing the
grantee's capacity to carry out the grant program successfully and will
award additional evaluation points to proposals that include such
contributions. If a successful applicant proposes to use matching funds
in its project to obtain additional evaluation points, the grant
agreement will include conditions requiring documentation of the
availability of the matching funds and actual expenditure of matching
funds.
[[Page 3320]]
3. Other Eligibility Requirements
A. Eligible Projects
Grantees must use grant funds to acquire, construct, extend,
upgrade, or otherwise improve energy generation, transmission, or
distribution facilities serving eligible communities. All energy
generation, transmission, and distribution facilities, equipment, and
associated services used to provide electricity, natural gas, home
heating fuels, and other residential energy service are eligible. On-
grid and off-grid renewable energy projects, and energy efficiency, and
energy conservation projects that serve eligible communities are
included.
Grants may cover up to the full costs of any eligible projects
subject to the statutory condition that no more than 4 percent of grant
funds may be used for the planning and administrative expenses of the
grantee.
The project must serve communities that meet the extremely high
energy cost eligibility requirements described in this NOFA. The
grantee must demonstrate that the proposed project will benefit
eligible communities. Additional information on eligible activities is
contained in the Application Guide.
Grant funds cannot be used for: preparation of the grant
application, fuel purchases, routine maintenance or other operating
costs, and purchase of equipment, structures, or real estate not
directly associated with provision of residential energy services. In
general, grant funds may not be used to support projects that primarily
benefit areas outside of eligible target communities. However, grant
funds may be used to finance an eligible target community's
proportionate share of a larger energy project.
Each grant applicant must demonstrate the economic and technical
feasibility of its proposed project. Activities or equipment that would
commonly be considered as research and development activities, or
commercial demonstration projects for new energy technologies will not
be considered as technologically feasible projects and would, thus, be
ineligible grant purposes. However, grant funds may be used for
projects that involve the innovative use or adaptation of energy-
related technologies that have been commercially proven.
B. Eligible Communities
The grant project must benefit communities with extremely high
energy costs. The RE Act defines an extremely high energy cost
community as one in which ``the average residential expenditure for
home energy is at least 275 percent of the national average residential
expenditure for home energy'' as determined by the Energy Information
Administration (EIA) using the most recent data available. 7 U.S.C.
918a.
The statutory requirement that community residential expenditures
for home energy exceed 275 percent of national average establishes a
very high threshold for eligibility under this program. RUS has
calculated high energy cost benchmarks based on EIA national average
home energy expenditure data. Communities must meet one or more high
energy cost benchmarks to qualify as an eligible beneficiary of a grant
under this program. Based on available published information on
residential energy costs, RUS anticipates that only those communities
with the highest energy costs across the country will qualify under
this congressionally-mandated standard.
The EIA's Residential Energy Consumption and Expenditure Surveys
(RECS) and reports provide the baseline national average household
energy costs that were used by RUS for establishing extremely high
energy cost community eligibility criteria for this grant program. The
RECS data base and reports provide national and regional information on
residential energy use, expenditures, and housing characteristics. The
latest available RECS home energy expenditure estimates are based on
1997 survey data and are shown in Table 1.
Table 1.--EIA Average Annual Household Energy Expenditures and RUS Extremely High Energy Cost Eligibility
Criteria Benchmarks
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Average total Extremely high energy
Fuel consumption National average cost benchmark
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Average annual household expenditure:
Electricity....................... 10,219 kilowatt hours $871 per year.......... $2,341 per year.
(kWh).
Natural Gas....................... 83 thousand cubic feet. $579 per year.......... $1,547 per year.
Fuel Oil.......................... 730 gallons............ $714 per year.......... $1,870 per year.
LPG/Propane....................... 488 gallons............ $500 per year.......... $1,266 per year.
Total Household Energy Use.... 101 million Btus....... $1,338 per year........ $3,613 per year.
Annual average per unit residential
energy costs:
Electricity....................... ....................... $0.085 per kWh......... $0.229 per kWh.
Natural Gas....................... ....................... $6.96 per thousand $18.78 per thousand
cubic feet. cubic feet.
Fuel Oil.......................... ....................... $0.96 per gallon....... $2.62 per gallon.
LPG/Propane....................... ....................... $1.03 per gallon....... $2.72 per gallon.
Total Household Energy cost per Btus.. ....................... $13.25 per million Btus $36.10 per million
Btus.
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Sources: U.S. Department of Energy, Energy Information Administration, Residential Energy Consumption and
Expenditure Surveys 1997. The RUS benchmarks calculations include adjustments to reflect the uncertainties
inherent in EIA's statistical methodology for estimating home energy costs. The benchmarks are set based on
the EIA's lower range estimates using the specified EIA methods.
Extremely high energy costs in rural and remote communities
typically result from a combination of factors. The most prevalent
include high energy consumption, high per unit energy costs in local
markets, limited availability of energy sources, extreme climate
conditions, and housing characteristics. The relative impacts of these
conditions exhibit regional and seasonal diversity. Market factors have
created an additional complication in recent years as the prices of the
major commercial residential energy sources--electricity, fuel oil,
natural gas, and LPG/propane--have fluctuated dramatically in some
areas.
RUS has established community eligibility criteria based on EIA's
estimates of national average residential energy expenditures. Table 1
shows the national averages and RUS benchmark criteria for extremely
high energy costs.
[[Page 3321]]
The applicant must demonstrate that each community in the grant's
proposed target area exceeds one or more of these high energy cost
benchmarks to be eligible for assistance under this program.
C. RUS High Energy Cost Benchmarks
The benchmarks measure extremely high energy costs for residential
consumers. These benchmarks were calculated using EIA's estimates of
national average residential energy expenditures per household and by
primary home energy source. The benchmarks recognize the diverse
factors that contribute to extremely high home energy costs in rural
communities. The benchmarks allow extremely high energy cost
communities several alternatives for demonstrating eligibility.
Communities may qualify based on: total annual household energy
expenditures; total annual expenditures for commercially-supplied
primary home energy sources, i.e., electricity, natural gas, oil, or
propane; or average annual per unit home energy costs. By providing
alternative measures for demonstrating eligibility, the benchmarks
reduce the burden on potential applicants created by the limited public
availability of comprehensive data on local community energy
consumption and expenditures.
RUS is adopting the following high energy cost benchmarks as
eligibility criteria for competitive grant applications submitted in
response to this NOFA. A target community or target area will qualify
as an extremely high cost energy community if it meets one or more of
the energy cost benchmarks described below.
1. Extremely High Average Annual Household Expenditure for Home
Energy. The target area or community exceeds one or more of the
following:
[sbull] Average annual residential electricity expenditure of
$2,341 per household;
[sbull] Average annual residential natural gas expenditure of
$1,547 per household;
[sbull] Average annual residential expenditure on fuel oil of
$1,870 per household;
[sbull] Average annual residential expenditure on propane or
liquefied petroleum gas (LPG) as a primary home energy source of $1,266
per household; or
[sbull] Average annual residential energy expenditure (for all non-
transportation uses) of $3,613 per household.
2. Extremely High Average per unit energy costs. The average
residential per unit cost for major commercial energy sources in the
target area or community exceeds one or more of the following:
[sbull] Annual average revenues per kilowatt hour for residential
electricity customers of $0.229 per kilowatt hour (kWh);
[sbull] Annual average residential natural gas price of $18.78 per
thousand cubic feet;
[sbull] Annual average residential fuel oil price of $2.62 per
gallon;
[sbull] Annual average residential price of propane or LPG as a
primary home energy source of $2.72 per gallon; or
[sbull] Total annual average residential energy cost on a Btu basis
of $36.13 per million Btu.\1\
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\1\ Note: Btu is the abbreviation for British Thermal Unit, a
standard energy measure. A Btu is the quantity of heat needed to
raise the temperature of one pound of water 1 degree Fahrenheit at
or near 39.2 degrees Fahrenheit. In estimating average household per
unit energy cost on a Btu basis, the costs of different home energy
sources are converted to a standard Btu basis. The Application Guide
contains additional information on calculating per unit costs on a
Btu basis for major home energy sources.
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D. Supporting Energy Cost Data
The applicant must include information that demonstrates its
eligibility under the RUS high energy cost benchmarks for the target
communities and the target areas. The applicant must supply
documentation or references for its sources for actual or estimated
home energy expenditures or equivalent measures to support eligibility.
Generally, the applicant will be expected to use historical residential
energy cost or expenditure information for the local energy provider
serving the target community or target area to determine eligibility.
Other potential sources of home energy related information include
Federal and State agencies, local community energy providers such as
electric and natural gas utilities and fuel dealers, and commercial
publications. The Application Guide includes a list of EIA resources on
residential energy consumption and costs that may be of assistance.
The grant applicant must establish eligibility for each community
in the project's target area. To determine eligibility, the applicant
must identify each community included in whole or in part within the
target areas and provide supporting actual or estimated energy
expenditure data for each community. The smallest area that may be
designated as a target area is a 2000 Census block. This minimum size
is necessary to enable a determination of population size.
Potential applicants can compare the RUS benchmark criteria to
available information about local energy use and costs to determine
their eligibility. Applicants should demonstrate their eligibility
using historical energy use and cost information. Where such
information is unavailable or does not adequately reflect the actual
costs of supporting average home energy use in a local community, RUS
will consider estimated commercial energy costs. The Application Guide
includes examples of circumstances where estimated energy costs are
used.
EIA does not collect or maintain data on home energy expenditures
in sufficient detail to identify specific rural localities as extremely
high energy cost communities. Therefore, grant applicants will have to
provide information on local community energy costs from other sources
to support their applications
In many instances, historical community energy cost information can
be obtained from a variety of public sources or from local utilities
and other energy providers. For example, EIA publishes monthly and
annual reports of residential prices by State and by service area for
electric utilities and larger natural gas distribution companies.
Average residential fuel oil and propane prices are reported regionally
and for major cities by government and private publications. Many State
agencies also compile and publish information on residential energy
costs to support State programs.
E. Use of Estimated Home Energy Costs.
Where historical community energy cost data are incomplete or
lacking or where community-wide data do not accurately reflect the
costs of providing home energy services in the target area, the
applicant may substitute estimates based on engineering standards. The
estimates should use available community, local, or regional data on
energy expenditures, consumption, housing characteristics and
population. Estimates are also appropriate where the target area does
not presently have centralized commercial energy services at a level
that is comparable to other residential customers in the State or
region. For example, local commercial energy cost information may not
be available where the target area is without local electric service
because of the high costs of connection. Engineering cost estimates
reflecting the incremental costs of extending service could reasonably
be used to establish eligibility for areas without grid-connected
electric service. Estimates also may be appropriate where historical
energy costs do not reflect the costs of providing a necessary upgrade
[[Page 3322]]
or replacement of energy infrastructure to maintain or extend service
that would raise costs above one or more of benchmarks.
Information to support high energy cost eligibility is subject to
independent review by RUS. Applications that contain information that
is not reasonably based on credible sources of information and sound
estimates will be rejected. Where appropriate, RUS may consult standard
sources to confirm the reasonableness of information and estimates
provided by applicants in determining eligibility, technical
feasibility, and adequacy of proposed budget estimates.
F. Coordination With State Rural Development Initiatives
USDA encourages the coordination of grant projects under this
program with State rural development initiatives. There is no
requirement that the grant proposal receive the concurrence or approval
of State officials as a condition of eligibility under this program.
RUS will, however, award additional priority points to proposals that
are coordinated with and support rural development initiatives within a
State. The Applicant should describe how the proposed project will
support State rural development initiatives and provide documentation
evidencing any concurrence or endorsement by State rural development
officials.
If an Applicant is an entity directly involved in rural development
efforts, such as a State, local, or tribal rural development agency or
a participant in an existing USDA Rural Development program, the
Applicant may qualify for additional points by describing how its
proposed project supports its efforts.
G. Limitations on Grant Awards
1. Statutory limitation on planning and administrative expenses.
Section 19 of the RE Act provides that no more than 4 percent of
the grant funds for any project may be used for the planning and
administrative expenses of the grantee.
2. Ineligible Grant Purposes.
Grant funds cannot be used for: preparation of the grant
application, fuel purchases, routine maintenance or other operating
costs, and purchase of equipment, structures, or real estate not
directly associated with provision of residential energy services. In
general, grant funds may not be used to support projects that primarily
benefit areas outside of eligible target communities. However, grant
funds may be used to finance an eligible target community's
proportionate share of a larger energy project.
Consistent with USDA policy, grant funds awarded under this program
generally cannot be used to replace other USDA assistance or to
refinance or repay outstanding RUS loans. Grant funds may, however, be
used in combination with other USDA assistance programs including RUS
loans. Grants may be applied toward grantee contributions under other
USDA programs depending on the terms of those programs. For example, an
applicant may propose to use grant funds to offset the costs of
electric system improvements in extremely high cost areas and as a cost
contribution as part of the utility's expansion of its distribution
system financed in whole or part by an RUS electric loan. An applicant
may propose to finance a portion of an energy project for an extremely
high energy cost community through this grant program and secure the
remaining project costs through a loan or loan guarantee or grant from
RUS or other sources.
3. Maximum and minimum awards.
The maximum amount of grant assistance that will be considered for
funding in a grant application under this notice is $5,000,000. The
minimum amount of assistance for a competitive grant application under
this program is $75,000.
IV. Application and Submission Information
All applications must be prepared and submitted in compliance with
this NOFA and the Application Guide. The Application Guide contains
additional information on the grant program and sources of information
for use in preparing applications and copies of the required
application forms or requested from RUS.
1. Address To Request an Application Package
Applications materials and the Application Guide are available for
download through http://www.Grants.gov (under CFDA No. 10.859) and on the RUS Web site at http://www.usda.gov/rus/electric.
Application packages, including required forms, may be also be
requested from: Karen Larsen, Management Analyst, U.S. Department of
Agriculture, Rural Utilities Service, Electric Program, 1400
Independence Avenue SW., STOP 1560, Room 5165 South Building,
Washington, DC 20250-1560. Telephone (202) 720-9545, Fax (202) 690-
0717, e-mail: energy.grants@usda.gov.
2. Content and Form of Application Submission
There are different application requirements for first time
applicants and for prior applicants requesting reconsideration. First
time applicants are those that did not submit a timely application in
response to the December 9, 2002 (67 FR 72904), NOFA. Prior applicants
are those that (1) submitted timely and complete applications under the
December 9, 2002, NOFA, (2) were not selected for a grant award, and
(3) would like to request consideration of their proposal under this
notice. First time applicants should follow the directions in this
notice and the Application Guide in preparing their applications and
narrative proposals. The completed application package should be
assembled in the order specified with all pages numbered sequentially
or by section.
Prior applicants should follow the special instructions for
reconsideration and submit a revised SF Form 424, a letter requesting
reconsideration, and any supplemental material by the deadline.
Application Contents for First Time Applicants
First time applicants must submit the following information for the
application to be complete and considered for funding:
Part A. A Completed SF 424, ``Application for Federal Assistance.''
This form must be signed by a person authorized to submit the proposal
on behalf of the applicant. Note: SF 424 has recently been revised to
include new required data elements, including a DUNS number. You must
submit the revised form. Copies of this form are available in the
application package available on line through RUS or through
Grants.gov, through the Office of Management and Budget at http://www.whitehouse.gov/omb/grants/grants_forms.html
, or by request from
the Agency contact listed above.
Part B. Grant Proposal. The grant proposal is a narrative
description prepared by the applicant that establishes the applicant's
eligibility, identifies the eligible extremely high energy cost
communities to be served by the grant, and describes the proposed grant
project, the potential benefits of the project, and a proposed budget.
The grant proposal should contain the following sections in the order
indicated.
1. Executive Summary. The Executive Summary is a one to two page
narrative summary that: (a) Identifies the applicant, project title,
and the key
[[Page 3323]]
contact person with telephone and fax numbers, mailing address and e-
mail address; (b) specifies the amount of grant funds requested; (c)
provides a brief description of the proposed program including the
eligible rural communities and residents to be served, activities and
facilities to be financed, and how the grant project will offset or
reduce the target community's extremely high energy costs; and (d)
identifies the associated rural development initiative that the project
supports. The Executive Summary should also indicate whether the
applicant is claiming additional points under any of the criteria
designated as USDA priorities under this NOFA.
2. Table of Contents. The application package must include a table
of contents immediately after the Executive Summary with page numbers
for all required sections, forms, and appendices.
3. Applicant Eligibility. This section includes a narrative
statement that identifies the applicant and supporting evidence
establishing that the applicant has or will have the legal authority to
enter into a financial assistance relationship with the Federal
Government. Examples of supporting evidence of applicant's legal
existence and eligibility include: a reference to or copy of the
relevant statute, regulation, executive order, or legal opinion
authorizing a State, local, or tribal government program, articles of
incorporation or certificates of incorporation for corporate
applicants, partnership or trust agreements, board resolutions.
Applicants must also be free of any debarment or other restriction on
their ability to contract with the Federal Government.
4. Community Eligibility. This section provides a narrative
description of the community or communities to be served by the grant
and supporting information to establish eligibility. The narrative must
show that the proposed grant project's target area or areas are located
in one or more communities where the average residential energy costs
exceed one or more of the benchmark criteria for extremely high energy
costs as described in this NOFA. The narrative should clearly identify
the location and population of the areas to be aided by the grant
project and their energy costs and the population of the local
government division in which they are located. Local energy providers
and sources of high energy cost data and estimates should be clearly
identified. Neither the applicant nor the project must be physically
located in the extremely high energy cost community, but the funded
project must serve an eligible community.
The population estimates should be based on the results of the 2000
Census available from the U.S. Census Bureau. Additional information
and exhibits supporting eligibility may include maps, summary tables,
and references to statistical information from the U.S. Census, the
Energy Information Administration, other Federal and State agencies, or
private sources. The Application Guide includes additional information
and sources that the applicant may find useful in establishing
community eligibility.
5. Coordination with State Rural Development Initiatives. In this
section the applicant must describe how the proposed grant will be
coordinated with rural development efforts. The Applicant should
provide supporting references or documentation.
6. Project Overview. This section includes the applicant's
narrative overview of its proposed project. The narrative must address
the following:
a. Project Design: This section must provide a narrative
description of the project including a proposed scope of work
identifying major tasks and proposed schedules for task completion, a
detailed description of the equipment, facilities and associated
activities to be financed with grant funds, the location of the
eligible extremely high energy cost communities to be served, and an
estimate of the overall duration of the project. The Project Design
description should be sufficiently detailed to support a finding of
technical feasibility. Proposed projects involving construction,
repair, replacement, or improvement of electric generation,
transmission, and distribution facilities must generally be consistent
with the standards and requirements for projects financed with RUS
loans and loan guarantees as set forth in RUS Electric Program
Regulations and Bulletins and may reference these requirements.
b. Project Management: This section must provide a narrative
describing the applicant's capabilities and project management plans.
The description should address the applicant's organizational
structure, method of funding, legal authority, key personnel, project
management experience, staff resources, the goals and objectives of the
program or business, and any related services provided to the project
beneficiaries. A current financial statement and other supporting
documentation may be referenced here and included under the
Supplementary Material section. If the applicant proposes to use
affiliated entities, contractors, or subcontractors to provide services
funded under the grant, the applicant must describe the identities,
relationship, qualifications, and experience of these affiliated
entities. The experience and capabilities of these entities will be
reviewed by the rating panel. If the applicant proposes to secure
equipment, design, construction, or other services from non-affiliated
entities, the applicant must briefly describe how it plans to procure
and/or contract for such equipment or services. The Applicant should
provide information that will support a finding that the combination of
management team's experience, resources and project structure will
enable successful completion of the project.
c. Regulatory and other approvals: The applicant must identify any
other regulatory or other approvals required by other Federal, State,
local, or tribal agencies, or by private entities as a condition of
financing that are necessary to carry out the proposed grant project
and its estimated schedule for obtaining the necessary approvals.
d. Benefits of the proposed project. The applicant should describe
how the proposed project would benefit the target area and eligible
communities. The description must specifically address how the project
will improve energy generation, transmission, or distribution
facilities serving the target area. The applicant should clearly
identify how the project addresses the energy needs of the community
and include appropriate measures of project success such as, for
example, expected reductions in household or community energy costs,
avoided cost increases, enhanced reliability, or economic or social
benefits from improvements in energy services available to the target
community. The applicant should include quantitative estimates of cost
or energy savings and other benefits. The applicant should provide
documentation or references to support its statements about cost-
effectiveness savings and improved services. The applicant should also
describe how it plans to measure and monitor the effectiveness of the
program in delivering its projected benefits.
7. Proposed Project Budget. The applicant must submit a proposed
budget for the grant program on SF 424A, ``Budget Information--Non-
Construction Programs'' or SF-424C, ``Standard Form for Budget
Information-Construction Programs,'' as applicable. The budget must
document that planned administrative and other expenses of the project
sponsor will not total more than 4 percent of grant funds. The
applicant must also identify the source and amount of any other
[[Page 3324]]
contributions of funds or services that will be used to support the
proposed project. This program does not require supplemental or
matching funds for eligibility, however, RUS will award additional
rating points for programs that include a match of other funds or like-
kind contributions to support the project.
8. Supplementary Material. The applicant may append any additional
information relevant to the proposal or which may qualify the
application for extra points under the evaluation criteria described in
this NOFA.
Part C. Additional Required Forms and Certifications. In order to
establish compliance with other Federal requirements for financial
assistance, the Applicant must execute and submit with the initial
application the following forms and certifications:
[sbull] SF 424B, ``Assurances--Non-Construction Programs'' or SF
424D, ``Assurances--Construction Programs'' (as applicable ).
[sbull] SF LLL, ``Disclosure of Lobbying Activities.''
[sbull] ``Certification Regarding Debarment, Suspension and Other
Responsibility Matter--Primary Covered Transactions'' as required under
7 CFR part 3017, Appendix A. Certifications for individuals,
corporations, nonprofit entities, Indian tribes, partnerships.
[sbull] Environmental Profile. The environmental profile template
included in the Application Guide solicits information about project
characteristics and site-specific conditions that may involve
environmental, historic preservation, and other resources. The profile
will be used by RUS to identify selected projects that may require
additional environmental reviews, assessments, or environmental impact
statements before a final grant award may be approved. A copy of the
environmental profile and instructions for completion are included in
the Application Guide and may be downloaded from the RUS website.
Special Requirements for Prior Applicants
Prior applicants that wish to request reconsideration of their
application packages in this round of competitive funding must submit a
revised SF 424, including new mandatory data elements (DUNS number, fax
number, and email address) along with a brief signed letter request for
reconsideration identifying any additional information that they wish
to be considered by the rating panel in reviewing their application
along with supporting documentation. The required application package
will consist of the original signed SF 424, the request for
reconsideration, and supporting documents. RUS has maintained prior
application materials on file and will add the newly submitted material
to the existing applications for review by the rating panel. Because
this abbreviated application package differs from the general
application package for first time applicants available through
Grants.gov, applicants requesting reconsideration should submit their
requests directly to RUS by the application deadline and not through
Grants.gov.
Additional Information Requests
In addition to the information required to be submitted in the
application package, RUS may request that successful grant applicants
provide additional information, analyses, forms and certifications as a
condition of pre-ward clearance, including any environmental reviews or
other reviews or certifications required under USDA and Government-wide
assistance regulations. RUS will advise the applicant in writing of any
additional information required.
Submitting the Application
Applicants that are submitting hard or paper copies of their
application package directly to RUS must submit one original
application package that includes original signatures on all required
forms and certifications and two copies. Applications should be
submitted on 8\1/2\ by 11 inch white paper. Supplemental materials,
such as maps, charts, plans, and photographs may exceed this size
requirement.
A completed application must contain all required parts in the
order indicated in the above section on ``Content and Form of
Application Submission.'' The application package should be paginated
either sequentially or by section.
Disclosure of Information
All material submitted by the applicant may be made available to
the public in accordance with the Freedom of Information Act (5 U.S.C.
552) and USDA's implementing regulations at 7 CFR Part 1.
3. Submission Dates and Times
Applications must be postmarked or delivered to RUS or to
grants.gov by March 5, 2004. RUS will begin accepting applications on
the date of publication of this NOFA. RUS will accept for review all
applications postmarked or delivered to RUS by this deadline. Late
applications will not be considered and may be returned to the
Applicant.
For the purposes of determining the timeliness of an application
RUS will accept the following as a valid postmarks: the date stamped by
the United States Postal Service on the outside of the package
containing the application delivered by U.S. Mail; the date the package
was received by a commercial delivery service as evidenced by the
delivery label; the date received via hand delivery to RUS; and the
date an electronic application was posted for submission to Grants.gov.
4. Intergovernmental Review
This program is not subject to the requirements of Executive Order
12372, ``Intergovernmental Review of Federal Programs,'' as implemented
under USDA's regulations at 7 CFR part 3015.
5. Funding Restrictions
Section 19 of the RE Act provides that no more than 4 percent of
the grant funds may be used for the planning and administrative
expenses of the grantee.
6. Other Submission requirements
Applicants that are submitting hard or paper copies of their
application package directly to RUS must submit one original
application package that includes original signatures on all required
forms and certifications and two copies. Applications should be
submitted on 8\1/2\ by 11 inch white paper. Supplemental materials,
such as maps, charts, plans, and photographs may exceed this size
requirement.
A completed application for first time applicants must contain all
required parts in the order indicated in the above section on ``Content
and Form of Application Submission.'' The application package should be
paginated either sequentially or by section. Applicants seeking
reconsideration should follow the special instructions above.
The completed paper application package and two copies must be
delivered to RUS headquarters in Washington, DC using United States
Mail, overnight delivery service, or by hand to the following address:
Rural Utilities Service, U.S. Department of Agriculture, 1400
Independence Avenue, SW., STOP 1560, Room 5165 South Building,
Washington, DC 20250-1560. Applications should be marked ``Attention:
High Energy Cost Community Grant Program.'' Applicants should be
advised that regular mail deliveries to Federal Agencies, especially of
oversized packages and envelopes, continue to be delayed because of
increased security screening
[[Page 3325]]
requirements. Applicants may wish to consider using Express Mail or a
commercial overnight delivery service instead of regular mail.
Applicants wishing to hand deliver or use courier services for delivery
should contact the Agency representative in advance to arrange for
building access. RUS advises applicants that because of intensified
security procedures at government facilities that any electronic media
included in an application package may be damaged during security
screening. If an applicant wishes to submit such materials, they should
contact the agency representative for additional information.
At this time, RUS is not able to accept applications directly
online, by email, or fax. Applicants that wish to submit applications
electronically must do so through the Federal web portal at http://www.Grants.gov.
Applicants wishing to submit electronic applications
through the new government-wide grants portal Grants.gov must follow
the application procedures and submission requirements detailed on that
Web site at http://www.Grants.gov. RUS will accept electronic
applications through Grants.gov only. Applicants that elect this option
will receive electronic confirmation that their applications have been
received.
Applicants should be aware that Grants.gov requires that applicants
complete several preliminary registrations and e-authentication
requirements before being allowed to submit applications
electronically. Applicants should consult the Grants.gov website and
allow ample time to complete the steps required for registration before
submitting their applications. Applicants may download application
materials and complete forms online through Grants.gov without
completing the registration requirements.
7. Multiple Applications
Eligible applicants may submit only one application per project.
Multiple tasks and localities may be included in a single proposed
grant project. No more than $5 million in grant funds will be awarded
per project. Applicants may, however, submit applications for more than
one project.
V. Application Review Information
All applications for grants must be delivered to RUS at the address
listed above or postmarked no later than March 5, 2004 to be eligible
for grant funding. After the deadline has passed, RUS will review each
application to determine whether it is complete and meets all of the
eligibility requirements described in this NOFA.
After the application closing date, RUS will not consider any
unsolicited information from the applicant. RUS may contact the
applicant for additional information or to clarify statements in the
application required to establish applicant or community eligibility
and completeness. Only applications that are complete and meet the
eligibility criteria will be considered. RUS will not accept or solicit
any additional information relating to the technical merits and/or
economic feasibility of the grant proposal after the application
closing date.
RUS may establish one or more rating panels to review and rate the
grant applications. These panels may include persons not currently
employed by USDA.
The panel will evaluate and rate all complete applications that
meet the eligibility requirements using the selection criteria and
weights described in this NOFA. As part of the proposal review and
ranking process, panel members may make comments and recommendations
for appropriate conditions on grant awards to promote successful
performance of the grant or to assure compliance with other Federal
requirements. The decision to include panel recommendations on grant
conditions in any grant award will be at the sole discretion of the
Administrator.
All applications will be scored and ranked according to the
evaluation criteria and weightings described in this Notice, which are
identical to those used in the December 2002 [67 FR 72904], NOFA. For
this reason, prior applicants that are being reconsidered will retain
their prior rating scores, however, the rating panel may revise the
score upward based on any updated information submitted by the
applicant.
RUS will use the ratings and recommendations of the panel(s) to
rank applicants against other applicants. All applicants will be ranked
according to their scores in this round. The rankings and
recommendations will then be forwarded to the Administrator for final
review and selection.
Decisions on grant awards will be made by the RUS Administrator
based on the application, and the rankings and recommendations of the
rating panel. The Administrator will fund grant requests in rank order
to the extent of available funds
1. Criteria
RUS will use the selection criteria described in this NOFA to
evaluate and rate applications and will award points up to the maximum
number indicated under each criterion. Applicants should carefully read
the information on the rating criteria in this NOFA and the Application
Guide and address all criteria. The maximum number of points that can
be awarded is 100 points. RUS will award up to 65 points for project
design and technical merit criteria and up to 35 points based on
priority criteria for project or community characteristics that support
USDA Rural Development and RUS program priorities.
Project Design and Technical Merit Criteria
Reviewers will consider the soundness of applicant's approach, the
technical feasibility of the project, the adequacy of financial and
other resources, the competence and experience of the applicant and its
team, the project goals and objectives, and community needs and
benefits. A total of 65 points may be awarded under these criteria.
A. Comprehensiveness and feasibility of approach. (Up to 30 points)
Raters will assess the technical and economic feasibility of the
project and how well its goals and objectives address the challenges of
the extremely high energy cost community. The panel will review the
proposed design, construction, equipment, and materials for the
community energy facilities in establishing technical feasibility.
Reviewers may propose additional conditions on the grant award to
assure that the project is technically sound. Reviewers will consider
the adequacy of the applicant's budget and resources to carry out the
project as proposed. Reviewers will also evaluate how the applicant
proposes to manage available resources such as grant funds, income
generated from the facilities, and any other financing sources to
maintain and operate a financially viable project once the grant period
has ended.
B. Demonstrated experience. (Up to 10 points) Reviewers will
consider whether the applicant and its project team have demonstrated
experience in successfully administering and carrying out projects that
are comparable to that proposed in the grant application. RUS supports
and encourages emerging organizations that desire to develop the
internal capacity to improve energy services in rural communities. In
evaluating the capabilities of entities without extensive experience in
carrying out such projects, RUS will consider the experience of the
project team and the effectiveness of the program design in
compensating for lack of extensive experience.
[[Page 3326]]
C. Community Needs. (Up to 15 points) Reviewers will consider the
applicant's identification and documentation of eligible communities,
their populations, and the applicant's assessment of community energy
needs to be addressed by the grant project. Information on the severity
of physical and economic challenges affecting eligible communities will
be considered. Reviewers will weigh: (1) The applicant's analysis of
community energy challenges and (2) why the applicant's proposal
presents a greater need for Federal assistance than other competing
applications. In assessing the applicant's demonstration of community
needs, the rating panel will consider information in the narrative
proposal addressing:
(a) the burden placed on the community and individual households by
extremely high energy costs as evidenced by such quantitative measures
as, for example, total energy expenditures, per unit energy costs,
energy cost intensity for occupied space, or energy costs as a share of
average household income, and persistence of extremely high energy
costs compared to national or statewide averages.
(b) the hardships created by limited access to reliable and
affordable energy services; and
(c) the availability of other resources to support or supplement
the proposed grant funding.
D. Project Evaluation Methods. (Up to 5 points) Reviewers will
consider the applicant's plan to evaluate and report on the success and
cost-effectiveness of financed activities and whether the results
obtained will contribute to program improvements for the applicant or
for other entities interested in similar programs.
E. Coordination with Rural Development Initiatives. (Up to 5
points) Raters will assess how effectively the proposed project is
coordinated with State rural development initiatives and is consistent
with and supports these efforts. RUS will consider the documentation
for coordination efforts, community support, and State or local
government recommendations. Applicants should identify the extent to
which the project is dependent on or tied to other rural development
initiatives, funding, and approvals.
Priority Criteria
In addition to the points awarded for project design and technical
merit, all proposals will be reviewed and awarded additional points
based on certain characteristics of the project or the target
community. USDA Rural Development policies generally encourage agencies
to give priority in their programs to rural areas of greatest need and
to support other Federal policy initiatives. In furtherance of these
policies, RUS will award additional points to smaller communities and
areas experiencing economic hardship, persistent poverty, or where
community energy services are inadequate or the facilities present an
imminent hazard to public health or safety. Priority points will also
be awarded for proposals that include cost sharing, or that serve a
Federally designated Empowerment Zone or Enterprise Community (EZ/EC)
or a USDA Champion Community. A maximum of 35 total points may be
awarded under priority criteria.
1. Economic Hardship. (Up to 10 points) The community experiences
one or more economic hardship conditions that impair the ability of the
community and/or its residents to provide basic energy services or to
reduce or limit the costs of these services. Economic hardship will be
assessed using either the objective measure of county median income
under A below or subjectively under B based on the Applicant's
description of the community's economic hardships and supporting
materials. Applicants may elect either measure, but not both.
A. Economically Distressed Communities. (up to 10 points) The
target community is an economically distressed county where the median
household income is significantly below the State average. Points will
be awarded based on the county percentage of State median household
income (or reservation percentage of State median household income in
the case of Federally-cognized Indian reservations) according to the
following:
(1) Less than 70 percent of the State median household income--10
points;
(2) 70 to 80 percent of the State median household income--8
points;
(3) 80 to 90 percent of the State median household income--5
points;
(4) 90 to 95 percent of the State median household income--2
points; or
(5) Over 95 percent of the State median household income--0 points.
Information on State and county median income is available online
from the USDA Economic Research Service at http://www.ers.usda.gov/data/unemployment/.
Information on Indian reservations is available
through the U.S. Census at http://www.census.gov.
B. Other Economic Hardship. (up to 10 points) The community suffers
from other conditions creating a severe economic hardship that is
adequately described and documented by the Applicant. Examples include
but are not limited to natural disasters, financially distressed local
industry, loss of major local employer, outmigration, or other
condition adversely affecting the local economy, or contributing to
unserved or underserved energy infrastructure needs that affect the
economic health of the community.
2. Persistent Poverty Community. (3 points) Persistent poverty
counties are those where poverty continues to be a long-term problem.
The Economic Research Service (ERS) of USDA has defined a persistent
poverty county as a nonmetropolitan county in which more than 20
percent of the population falls below the poverty level in each of the
last 4 census years. ERS has made a preliminary identification of over
300 nonmetropolitan counties in which more than 20 percent of the
population was below the poverty level in 1970, 1980, 1990, and 2000. A
list of the ERS persistent poverty counties can be found in the online
Application Guide or requested from the agency contact. In support of
USDA policy, raters will award 3 points to any proposal in which the
target area or project is located in a persistent poverty county.
3. Rurality. (Up to 12 points) Consistent with the USDA Rural
Development policy to target resources to rural communities with
significant needs and recognizing that smaller communities are often
comparatively disadvantaged in seeking assistance, RUS reviewers will
award additional points based on the rurality (as measured by
population) of the target communities to be served with grant funds.
Applications will be scored based on the population of the largest
incorporated cities, towns, or villages, or census designated places
included within the grant's proposed target area.
If the largest target community within the proposed target area has
a population of:
(A) 2,500 or less--12 points;
(B) Between 2,501 and 5,000, inclusive 10 points;
(C) Between 5,001 and 10,000, inclusive 8 points;
(D) Between 10,001 and 15,000, inclusive 5 points;
(E) Between 15, 001 and 20,000, inclusive 2 points;
(F) Above 20,000, 0 points.
Applicants must use the latest available population figures from
Census 2000 available at <http://www.census.gov/main/www/cen2000.html
for every incorporated city, town, or village,
or Census designated place included in the target area.
4. Unserved Energy Needs (2 points) Consistent with the purposes of
the RE Act, projects that meet unserved or
[[Page 3327]]
underserved energy needs will be eligible for 2 points. Examples of
proposals that may qualify under this priority include projects that
extend or improve electric or other energy services to communities and
customers that do not have reliable centralized or commercial service
or where many homes remain without such service because the costs are
unaffordable.
5. Imminent hazard (2 points) If the grant proposal involves a
project to correct a condition posing an imminent hazard to public
safety, welfare, the environment, or to a critical community or
residential energy facility, raters may award 2 points. Examples
include community energy facilities in immediate danger of failure
because of deteriorated condition, capacity limitations, damage from
natural disasters or accidents, or other conditions where failure would
create a substantial threat to public health or safety, or to the
environment.
6. Cost Sharing (2 points) This grant program does not require any
cost contribution. In addition to their assessment of the economic
feasibility and sustainability of the project under the project
evaluation factors above, raters may award 2 points for cost sharing.
These points will be awarded when the proposal documents that
supplemental contributions of funds, property, equipment, services, or
other in kind contributions that support the project and demonstrate
the applicant's and/or community's commitment to the project exceed 10
percent of project costs.
7. Empowerment Zone and Enterprise Community (EC/EZ) or Champion
Community ( up to 4 points) If the proposed project serves at least one
community that is a Federally-identified Empowerment Zone and
Enterprise Community (EC/EZ Community), 4 points will be awarded. The
list of currently approved EC/EZ communities may be found at the EZ/EC
Web site at: http://www.ezec.gov or may be requested from the agency
contact.
If the proposed project serves at least one community that is a
USDA identified ``Champion Community,'' 2 points will be awarded. The
list of currently approved USDA champion communities may be found at
the EZ/EC Web site at: http://www.ezec.gov or may be requested from the
agency contact.
2. Review and Selection Process
Scoring and Ranking of Applications
Following the evaluation and rating of individual applications
under the above criteria, the rating panels will rank the applications
in order according to their total scores. The scored and ranked
applications and the raters' comments will then be forwarded to the
Administrator for review and selection of grant awards.
Selection of Grant Awards and Notification of Applicants
The RUS Administrator will review the rankings and recommendations
of the applications provided by the rating panels for consistency with
the requirements of this NOFA. The Administrator may return any
application to the rating panel with written instruction for
reconsideration if, in her sole discretion, she finds that the scoring
of an application is inconsistent with this NOFA and the directions
provided to the rating panel.
Following any adjustments to the project rankings as a result of
reconsideration, the Administrator will select projects for funding in
rank order. If funds remain after funding the highest ranking
application, RUS may fund all or part of the next highest ranking
application. RUS will advise an applicant if it cannot fully fund a
grant request.
The Administrator may decide based on the recommendations of the
rating panel or in her sole discretion that a grant award may be made
fully or partially contingent upon the applicant satisfying certain
conditions or providing additional information and analyses. For
example, RUS may defer approving a final award to a selected project--
such as projects requiring more extensive environmental review and
mitigation, preparation of detailed site specific engineering studies
and designs, or requiring local permitting, or availability of
supplemental financing--until any additional conditions are satisfied.
In the event that a selected applicant fails to comply with the
additional conditions within the time set by RUS, the selection will be
vacated and the next ranking project will be considered.
If a selected applicant turns down a grant award offer, or fails to
conclude a grant agreement acceptable to RUS, or to provide required
information requested by RUS within the time period established in the
notification of selection for grant award, the RUS Administrator may
select for funding the next highest ranking application submitted in
response to this NOFA. If funds remain after all selections have been
made, remaining funds will be carried over and made available in future
awards under the High Energy Cost Grant Programs.
RUS will notify each Applicant in writing whether or not it has
been selected for an award. RUS's written notice to a successful
applicant of the amount of the grant award based on the approved
application will constitute RUS's preliminary approval, subject to
compliance with all post-selection requirements including but not
limited to completion of any environmental reviews and negotiation and
execution of a grant agreement satisfactory to RUS. Preliminary
approval does not bind the Government to making a final grant award.
Only a final grant award and agreement executed by the Administrator
will constitute a binding obligation and commitment of Federal funds.
Funds will not be awarded or disbursed until all requirements have been
satisfied. RUS will advise selected applicants of additional
requirements or conditions.
Adjustments to Funding
RUS reserves the right to fund less than the full amount requested
in a grant application to ensure the fair distribution of the funds and
to ensure that the purposes of a specific program are met. RUS will not
fund any portion of a grant request that is not eligible for funding
under Federal statutory or regulatory requirements; that does not meet
the requirements of this NOFA, or that may duplicate other RUS funded
activities, including electric loans. Only the eligible portions of a
successful grant application will be funded.
Grant assistance cannot exceed the lower of:
(a) The qualifying percentage of eligible project costs requested
by the Applicant; or
(b) The minimum amount sufficient to provide for the economic
feasibility of the project as determined by RUS.
VI. Award Administration Information
1. Award Notices
RUS will notify all applicants in writing whether they have been
selected for an award. Successful applicants will be advised in writing
of their selection as award finalists. Successful applicants will be
required to negotiate a grant agreement acceptable to RUS and complete
additional grant forms and certifications required by USDA as part of
the pre-award process.
Depending on the nature of the activities proposed by the
application, the grantee may be asked to provide information and
certifications necessary for compliance with RUS environmental policy
regulations and procedures at 7 CFR 1794. Following completion of the
environmental review, selected applicants will receive a letter of
conditions establishing any project-
[[Page 3328]]
specific conditions to be included in the grant agreement and asked to
execute a letter of intent to meet the grant conditions or to detail
why such conditions can't be met and to propose alternatives. Grant
funds will not be advanced unless and until the applicant has executed
a grant agreement acceptable to RUS.
RUS will require each successful applicant to agree to the specific
terms of each grant agreement, a project budget, and other RUS
requirements. In cases where RUS cannot successfully conclude
negotiations with a selected applicant or a selected applicant fails to
provide RUS with requested information within the time specified, an
award will not be made to that applicant. The selection will be revoked
and RUS may offer an award to the next highest ranking applicant, and
proceed with negotiations with the next highest ranking applicant.
2. Administrative and National Policy Requirements
Environmental Review and Restriction on Certain Activities
Grant awards are required to comply with 7 CFR part 1794, which
sets forth RUS regulations implementing the National Environmental
Policy Act (NEPA). Grantees must also agree to comply with any other
Federal or State environmental laws and regulations applicable to the
grant project.
If the proposed grant project involves physical development
activities or property acquisition, the Applicant is generally
prohibited from acquiring, rehabilitating, converting, leasing,
repairing or constructing property, or committing or expending RUS or
non-RUS funds for proposed grant activities until RUS has completed any
environmental review in accordance with 7 CFR part 1794 or determined
that no environmental review is required. Successful applicants will be
advised whether additional environmental review and requirements apply
to their proposals.
Other Federal Requirements
Other Federal statutes and regulations apply to grant applications
and to grant awards. These include, but are not limited to,
requirements under 7 CFR part 15, subpart A--Nondiscrimination in
Federally Assisted Programs of the Department of Agriculture--
Effectuation of Title VI of the Civil Rights Act of 1964.
Certain OMB circulars also apply to USDA grant programs and must be
followed by a grantee under this program. The policies, guidance, and
requirements of the following, or their successors, may apply to the
award, acceptance and use of assistance under this program and to the
remedies for noncompliance, except when inconsistent with the
provisions of the Agriculture, Rural Development and Related Agencies
Appropriations Acts, other Federal statutes or the provisions of this
NOFA:
[sbull] OMB Circular No. A-87 (Cost Principles Applicable to
Grants, Contracts and Other Agreements with State and Local
Governments);
[sbull] OMB Circular A-21 (Cost Principles for Education
Institutions);
[sbull] OMB Circular No. A-122 (Cost Principles for Nonprofit
Organizations);
[sbull] OMB Circular A-133 (Audits of States, Local Governments,
and Non-Profit Organizations);
[sbull] 7 CFR part 3015 (Uniform Federal Assistance Regulations);
[sbull] 7 CFR part 3016 (Uniform Administrative Requirements for
Grants and Cooperative Agreements to State, Local, and Federally
recognized Indian tribal governments);
[sbull] 7 CFR part 3017 (Governmentwide debarment and suspension
(non-procurement) and governmentwide requirements for drug-free
workplace (grants));
[sbull] 7 CFR part 3018 (New restrictions on Lobbying);
[sbull] 7 CFR part 3019 (Uniform administrative requirements for
grants and Agreements with Institutions of Higher Education, Hospitals,
and other Non-Profit Organizations); and
[sbull] 7 CFR part 3052 (Audits of States, local governments, and
non-profit organizations).
Compliance with additional OMB Circulars or government-wide
regulations may be specified in the grant agreement.
3. Reporting
The grantee will be required to provide periodic financial and
performance reports under USDA grant regulations and RUS rules and to
submit a final project performance report. The nature and frequency of
required reports are established in USDA grant regulations and the
project-specific grant agreements.
VII. Agency Contact
The Agency Contact for this grant announcement is Karen Larsen,
Management Analyst, U.S. Department of Agriculture, Rural Utilities
Service, Electric Program, 1400 Independence Avenue, SW., STOP 1560,
Room 5165 South Building, Washington, DC 20250-1560. Telephone (202)
720-9545, Fax 202-690-0717, e-mail mail to: Karen.Larsen@usda.gov.
Information Collection and Recordkeeping Requirements
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
chapter 35), RUS invites comments on this information collection for
which RUS intends to request approval from the Office of Management and
Budget (OMB). These requirements are pending emergency clearance by
OMB.
Comments on this notice must be received by March 23, 2004.
Comments are invited on (a) whether the collection of information
is necessary for the proper performance of the functions of the agency,
including whether the information will have practical utility; (b) the
accuracy of the agency's estimate of burden including the validity of
the methodology and assumption used; (c) ways to enhance the quality,
utility and clarity of the information to be collected; and (d) ways to
minimize the burden of the collection of information on those who are
to respond, including through the use of appropriate automated,
electronic, mechanical, or other technological collection techniques or
other forms of information technology.
Comments may be sent to Richard Annan, Acting Director, Program
Development and Regulatory Analysis, Rural Utilities Service, U.S.
Department of Agriculture, 1400 Independence Ave., SW., Stop 1522, Room
5168 South Building, Washington, DC 20250-1522. Comments may also be
submitted via e-mail to RUSComments@usda.gov and must contain the
phrase ``High Energy Information Collection'' in the subject line.
Title: Assistance to High Energy Cost Rural Communities.
Type of Request: New collection.
Estimate of Burden: Public reporting burden for this collection of
information is estimated to average 7 hours per response.
Respondents: For profit and not-for-profit entities; State, Local
or Tribal Governments.
Estimated Number of Respondents: 25.
Estimated Number of Responses per Respondent: 3.
Estimated Total Annual Burden on Respondents: 514 hours.
Copies of this information collection can be obtained from Michele
Brooks, Program Development and Regulatory Analysis, at (202) 690-1078.
All responses to this information collection and recordkeeping
notice will be summarized and included in the request for OMB approval.
All comments will also become a matter of public record.
[[Page 3329]]
Dated: January 20, 2004.
Hilda Gay Legg,
Administrator, Rural Utilities Service.
[FR Doc. 04-1471 Filed 1-22-04; 8:45 am]
BILLING CODE 3410-15-P