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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 not now accepting applications. The application period for the 2008 Notice of Funding Availability published on January 28, 2008, closed on March 28, 2008. Applications have been 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. Eligibility may be established using average annual household expenditures for individual fuels or for total energy, or average per unit cost for home energy.

NOTE: Eligibility Benchmarks are currently under review and are likely to be revised for the 2009 Application. New 2009 Eligibility Benchmarks based on updated Department of Energy information will be posted here. The 2008 Benchmarks show below are for reference.

2008 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

Applications are accepted in response to a published Notice of Funding Availability (NOFA). You must submit a grant application package prepared according to the directions contained in the NOFA and the Application Guide to apply for a grant under this program. We are not currently accepting applications under this program. See the Resources section below to review the Announcement and Appication Guide materials for 2008.

Notice of Funding Availability 

The 2009 Notice of Funding Availability (2009 NOFA) announcing the opportunity to apply for a competitive grant under this program will be available here when it is published in the Federal Register and on Grants.gov. The 2009 NOFA will provide information on the amount of grant funds available, eligibility and application requirements, and application deadlines. 

Application Guide

The 2009 Application Guide will be available here when the 2009 NOFA is published. The Application Guide should be used with the NOFA published in the Federal Register to help you put together your application. The guide will provide 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.

Application Package

A completed grant application consists of your narrative grant proposal prepared according to the requirements of the 2009 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 published 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: Program regulations provide that the Agency may allow entities that submitted completed applications under the 2008 NOFA to follow an optional, streamlined process to request reconsideration of these applications. When the 2009 NOFA is published it will include further details about how to request reconsideration.

Deadline

The 2009 NOFA will include information on application deadlines.

    Where to Submit Your Application

    The 2009 NOFA will include information on how and where to submit paper applications and how to apply online through Grants.gov.

Evaluation of Applications and Notification of Grant Awards

The Electric Programs will review all timely and complete applications for eligibility under the published NOFA. 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: karen.larsen@wdc.usda.gov




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