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Electric Programs >> High Energy Cost Grant Program >> Overview

High Energy Cost Grant Program
Overview

The High Energy Cost Grant Program provides financial assistance for the improvement of energy generation, transmission, and distribution facilities serving eligible rural communities with home energy costs that are over 275 percent of the national average.

2008 Funding Opportunities: We are now accepting applications under the 2008 Notice of Funding Availability published on January 28, 2008. The current application period closed on March 28, 2008.

Download:

For more information on submitting Applications, see "How to Apply" below.

If you cannot download the NOFA or Application Guide here, you may request copies from the Agency Contact below.

2007 Notice of Funding Availability: The Application Deadline closed on Monday, October 1, 2007, for the 2007 Notice of Funding Availability (NOFA) published on Friday, August 17, 2007. Applications are still being reviewed and finalists will be announced soon.

Eligibility

To be eligible to receive a grant under this program:

  • You must be an eligible applicant;
  • The grant project must serve an eligible extremely high energy cost community;
  • The proposed project must improve energy generation, transmission, or distribution facilities serving an eligible community; and
  • The administrative costs of the project must not exceed 4 percent of grant funds.

Who Is an Eligible Applicant?

You are eligible to apply you are any of the following:

  • a legally-organized for-profit or nonprofit organization such as, but not limited to, a corporation, association, partnership (including a limited liability partnership), cooperative, or trust;
  • a sole proprietorship;
  • a State or local government, or any agency or instrumentality of a State or local government, including a municipal utility or public power authority;
  • an Indian tribe, a tribally-owned entity, an Alaska Native Corporation;
  • an individual or group of individuals; or
  • any of the above entities located in a U.S. Territory or other area authorized by law to participate in programs of the Rural Utilities Service or under the Rural Electrification Act.

Is My Community Eligible?

Your community qualifies as an eligible extremely high energy cost community if average home energy costs in the area to be served exceed 275 percent of the national average under one or more RUS high energy cost benchmarks shown below. Eligibility may be established using average annual household expenditures for individual fuels or for total energy, or average per unit cost for home energy.

RUS High Energy Cost Benchmarks
Amounts shown are 275% of national average

Fuel
Average annual household expenditures
Average per unit cost
Electricity
$2,509
$ 0.239 per kilowatt hour
Natural gas
$1,859
$ 26.85 per thousand cubic feet
Fuel oil
$1,882
$ 3.35 per gallon
LPG/propane
$1,514
$ 3.61 per gallon
Total household energy
$4,013
$ 43.91 per million Btus

 

What Kinds of Energy Projects Are Eligible?

Grants under this program may be used for the acquisition, construction, installation, repair, replacement, or improvement of energy generation, transmission, or distribution facilities in communities with extremely high energy costs. On-grid and off-grid renewable energy projects, and energy efficiency, and energy conservation projects are eligible. See the list of grant awards and project summaries in the Resources section below for projects previously funded under this program.

How to Apply

You must submit a grant application package prepared according to the directions contained in the NOFA [html] [pdf] and the Application Guide to apply for a grant under this program. Carefully read the NOFA and the Application Guide before you begin your application.

Application Guide

The 2008 Application Guide should be used with the NOFA [html] [pdf] published in the Federal Register to help you put together your application. This guide provides additional information to help you determine whether your community is eligible under the program and how to complete your application package. The guide includes examples of eligible projects and suggested sources for obtaining the energy and population data that you will need to determine eligibility and support your application.

The Application Guide may be downloaded here or requested from the Agency contact.

Application Package

The completed grant application consists of your narrative grant proposal prepared according to the requirements of the NOFA with supporting documentation and all required forms and certifications. The application package consists of one completed application including signed originals of all forms and certifications and two copies of the application.

The Grant Proposal

The Grant Proposal is a narrative document prepared by the Applicant. The narrative describes the proposed grant project in detail and establishes the applicant's eligibility, community eligibility, potential benefits of the project, and the proposed budget. The grant proposal must contain the following sections as provided in the NOFA:

  • Executive Summary.
  • Table of Contents
  • Applicant Eligibility
  • Community Eligibility
  • Coordination with State Rural Development Initiatives.
  • Project Overview (including design, management, regulatory and other approvals, goals, performance measures, and proposed budget)
  • Supplementary Materials (Optional)

Required Forms and Certifications

The application package must contain a complete and signed original of each of the following required forms and certifications plus two copies.

NOTE: The NOFA allows entities that submitted completed applications under the 2007 NOFA may follow an optional, streamlined process. Applicants may request reconsideration of these applications. See the NOFA for further details about how to request reconsideration.

Deadline

  • The application deadline was March 28, 2008. Late applications will not be considered.

Where to Submit Your Application

Paper Applications

A completed application package with original signatures and two copies must be delivered by prepaid United States Mail, overnight delivery service, or by hand to our offices in Washington, DC at the following address:

Assistant Administrator Rural Development, Electric Programs
United States Department of Agriculture
1400 Independence Avenue, SW, STOP 1560, Room 5165 South Building
Washington, DC 20250-1560.

Applicants are advised that regular mail deliveries to the USDA complex continue to be delayed because of increased security screening requirements for Federal buildings. 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. Because of intensified security procedures at government facilities, 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.

Electronic Applications

Applicants may submit applications electronically through Grants.gov, the online Federal grants portal at http://www.Grants.gov. Information on how to submit applications electronically is available on the Grants.gov website. Applicants must successfully pre-register with Grants.gov to use the electronic applications option. The Agency is not able to accept applications directly online, by email or fax.

Evaluation of Applications and Notification of Grant Awards

The Electric Programs will review all timely and complete applications for eligibility. A rating panel consisting of employees from across the Agency will score and rank all eligible, complete, and timely applications according to the evaluation criteria set out in the NOFA. The Administrator will select grant projects based on rank order scores and rating panel recommendations. The Electric Programs will notify applicants in writing whether they have been selected for a grant award. You will be advised of any additional requirements or conditions - such as, for example, environmental reviews -- that must be completed before a final award decision can be made. A final award will only be effective on the Administrator's approval of the Grant Agreement negotiated between the Agency and the Grantee and the availability of appropriated funds.

Resources

Contact

Karen Larsen
Policy Analysis and Loan Management Staff
Rural Development, Electric Programs
U.S. Department of Agriculture
1400 Independence Avenue, SW Stop 1560, Room 5165-South
Washington, DC 20250-1560
Telephone: (202) 720-9545
Fax: (202) 690-0717
Email: energy.grants@wdc.usda.gov




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