FY20 HECGP FOA.pdf

FEDERAL AWARDING AGENCY NAME: United States Department of Agriculture, Rural Development, Rural Utilities Service (RUS).

FUNDING OPPORTUNITY TITLE: High Energy Cost Rural Communities Grant Program for Fiscal Year 2020

ANNOUNCEMENT TYPE: Funding Opportunity Announcement

FUNDING OPPORTUNITY NUMBER: RD-RUS-HECG20

CATALOG OF FEDERAL DOMESTIC ASSISTANCE (CFDA) NUMBER: 10.859.

The Rural Utilities Service (RUS), an agency of the United States Department of Agriculture (USDA), herein referred to as RUS or the Agency, announces its High Energy Cost Rural Communities Grant Program (HEC) application window for Fiscal Year (FY) 2020.

APPLICATION DUE DATE: April 27, 2020

SUBMISSIONS: You may submit completed grant applications on paper or electronically according to the following deadlines:

Paper applications must be postmarked and mailed, shipped, or sent overnight, no later than April 27, 2020, or hand delivered to RUS by this deadline, to be eligible under this Funding Opportunity Announcement (FOA). Late or incomplete applications will not be eligible for FY 2020 grant funding. Applications will be accepted upon publication of this notice until midnight (EST) of the closing date.

If the submission deadline falls on Saturday, Sunday, or a Federal holiday, the application is due the next business day.

Electronic applications must be submitted through Grants.gov no later than midnight Eastern Standard Time April 27, 2020 to be eligible under this notice for FY 2020 grant funding. Late or incomplete electronic applications will not be eligible.

RUS will not accept applications submitted via facsimile or electronic mail.

Electronic applications must be submitted through Grants.gov on or before the deadline published at the top of this notice under APPLICATION DUE DATE.

The 2020 Application Guide provides specific, detailed instructions for each item of a complete application. The Agency emphasizes the importance of including every item and strongly encourages applicants to follow the instructions carefully, using the examples and illustrations in the Application Guide. Prior to official submission of applications, applicants may request technical assistance or other application guidance from the Agency if such requests are made prior to April 13, 2020. Agency contact information can be found in Part G of this FOA.

The Agency will not solicit or consider new scoring or eligibility information that is submitted after the application deadline. The Agency reserves the right to contact applicants to seek clarification on materials contained in the submitted application. See the Application Guide for a full discussion of each item. For requirements of completed grant applications, refer to 7 CFR part 1709.

FOR MORE INFORMATION: Robin Meigel, Finance Specialist, Rural Utilities Service, Electric Programs, United States Department of Agriculture, 1400 Independence Avenue, SW, STOP 1568, Room 0270 South Building, Washington, DC 20250– 1568.

Telephone (202) 720–9545, e-mail: energy.grants@usda.gov or robin.meigel@usda.gov.

SUPPLEMENTARY INFORMATION: The Rural Utilities Service (RUS), an agency of the United States Department of Agriculture (USDA), announces the availability of up to $10 million in fiscal year 2020 (FY20) and application deadlines for competitive grants to assist communities with extremely high energy costs. These grants are made available under the authority of section 19 of the Rural Electrification Act of 1936, as amended, and program regulations at 7 CFR part 1709. 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 is at least 275 percent of the national average.

Grants may also be used for programs that install on-grid and off-grid renewable energy systems and energy efficiency improvements in eligible communities. Grant awards are not made directly to individuals or for projects that primarily benefit a single household or business. This notice describes the eligibility and application requirements, the criteria that will be used by RUS to award funding, and how to obtain application materials.

A. Program Description

The USDA through the Rural Utilities Service (“RUS”) provides grant assistance for energy facilities, including renewable energy systems and energy efficiency improvements, serving extremely high energy cost communities. This program is authorized by section 19 of the Rural Electrification Act of 1936, as amended (the “RE Act”) (7 U.S.C. § 918a). Program regulations are found at 7 CFR part 1709.

This program was established in 2000 to aid communities most challenged by extremely high energy costs, defined by statute as average residential home energy expenditures that are at least 275 percent of the national average. This statutory threshold for eligibility is high and has the result of limiting the availability of this program to extremely high cost and typically remote areas. RUS periodically establishes eligibility benchmarks using the most recent home energy data published by the Energy Information Administration. This notice contains the latest updates to these benchmarks.

The purpose of this program is to provide financial assistance for a broad range of energy facilities, equipment and related activities to offset the impact of extremely high home energy costs on eligible communities. The grants help communities provide basic energy needs by financing energy infrastructure supporting rural prosperity and job creation. Grant funds may not be used to pay utility bills or to purchase fuel. Nor may grant funds be used for education and outreach except for training that is directly related to energy facilities financed in all or part by this program. Upgrades to existing facilities are also eligible. Grant projects under this program must serve an eligible community and not be for the primary benefit of an individual applicant, household, or business.

With publication of this notice, USDA is making available up to $10 million in new competitive grant awards under the High Energy Cost Grant Program. This notice describes eligibility and application requirements for these grants. Grants will be awarded competitively based on the selection criteria in Part E of this notice.

Priorities Under the authority of 7 CFR §§ 1709.102(b) and 1709.123, this notice establishes several priority scoring criteria to support USDA and RUS policy objectives.

Additional points will be awarded for:

• Projects that assist USDA High Poverty Areas;

• Projects that serve small rural communities;

• Projects that incorporate commercially proven waste heat recovery technology;

• Projects that result in not less than a 25 percent increase in energy efficiency for generation assets, this includes repowering aging diesel plants;

• Projects that address extraordinary circumstances affecting the eligible high energy cost community such as a disaster, imminent hazard, unserved areas, and other economic hardship; and

• Projects that serve Substantially Underserved Trust Areas.

The Agency encourages applications that will help improve life in rural America. See information on the Interagency Task Force on Agriculture and Rural Prosperity found at www.usda.gov/topics/rural/rural-prosperity. Applicants are encouraged to consider projects that provide measurable results in helping rural communities build robust and sustainable economies through strategic investments in infrastructure, partnerships and innovation. Key strategies include:

• Achieving e-Connectivity for Rural America

• Developing the Rural Economy

• Harnessing Technological Innovation

• Supporting a Rural Workforce

• Improving Quality of Life

More information on scoring and priorities is found in Part E of this notice.

B. Federal Award Information

The RUS Administrator has established the application and selection requirements under this notice pursuant to program regulations at 7 CFR part 1709 and Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards at 2 CFR part 200. The total amount of funds available for high energy cost grants under this notice is up to $10 million.

Applicants must provide a complete grant application package with a narrative grant proposal prepared according to the instructions in this notice and the 2020 Application Guide, including all required forms and certifications. The 2020 Application Guide is available electronically on the program website (http://www.rd.usda.gov/programs-services/high-energy-cost-grants) link or through Grants.gov, or by request from the Agency contact.

RUS anticipates making multiple awards under this notice. The number of grants awarded will depend on the number of complete applications submitted, the total grant funds requested, the quality and competitiveness of applications, and the availability of funds. There were 8 grant awards obligated under the Funding Opportunity Announcement (FOA) for this program that was published in 2019 and these awards ranged from $219,660 to $3,000,000.

The RUS reserves the right not to award all the funds made available under this notice.

All awards will be made under grant agreements with terms and conditions established by RUS. Grant agreements typically provide for a period of performance of three years. Approvals of any extensions to the original grant term are at the sole discretion of the Agency.

1. No Reconsideration of 2019 Applications

The Administrator has determined that all applicants must apply under this 2020 FOA. There will be no reconsideration of applications submitted under the 2019 FOA.

2. Limitations on Grant Awards

a. Statutory Limitation on Planning and Administrative Expenses

Section 19(b)(2) of the RE Act provides that no more than 4 percent of the grant funds for any project may be used for planning and administrative expenses of the grantee not directly related to delivery of the project. RUS will not make awards for any such expenses exceeding 4 percent of grant funds. Because of this limitation, applicants must detail any indirect costs.

b. Maximum and Minimum Awards For High Energy Cost Grants, the maximum amount of grant assistance that will be considered for funding per grant application under this notice is $3,000,000. The minimum amount of grant assistance that will be considered for funding per grant application under this notice is $100,000.

c. Multiple Applications Eligible applicants must include only one project per application, but the project can include many locations. Applicants may submit applications for multiple projects;

however, an applicant can only be awarded funding for one project under this notice.

The award will be made to the highest ranked application submitted by an applicant;

other applications from the same applicant or project will remain unfunded under this notice.

3. Substantially Underserved Trust Areas (SUTA) This program is subject to the provisions for Substantially Underserved Trust

Areas in 7 U.S.C. § 936f and the regulation at 7 CFR part 1700, subpart D. This notice provides that five points will be added to application scores for applications from eligible underserved trust areas that have been accepted for special consideration by the Administrator. Applicants must submit a separate, standalone application for SUTA consideration inclusive of the letter and supporting material as described under Part C, Section 1(b) below to be considered for these priority points.

4. Application Review and Finalist Selections

All timely submitted and complete applications will be reviewed for eligibility and rated according to the criteria described in this notice. Applications will be ranked in order of their numerical scores and forwarded to the RUS Administrator. The RUS Administrator is the federal selection official for these competitive awards (7 CFR § 1709.121). The Administrator will review the rankings and the recommendations of the rating panel. The Administrator will select finalists for grant awards after consideration of the applications, the rankings, comments, and recommendations of the rating panel, and other pertinent information, including availability of funds and an assessment of relative need. Upon such consideration, the Administrator may elect to offer an award of less than the full amount of the grant requested by an applicant.

A letter advising the applicant that they are a selected finalist is not a binding commitment to provide funding. A selected finalist is not an awardee until the Agency has obligated funds and the Administrator has signed the related grant agreement.

5. Environmental Review and Other Pre-Award Requirements Projects that are selected finalists for award will be reviewed for environmental impacts and an environmental determination pursuant to the National Environmental Policy Act (NEPA) in accordance with 7 CFR part 1970. Concurrent with this environmental review, additional due diligence and risk management reviews will be conducted by the Agency to better assure that the representations in the finalist applications have a high probability of being achieved within a reasonable timeframe.

Considerations during this period may include, but are not limited to:

the committed availability of matching contributions;

prior performance of project principals with respect to other projects;

the commercial acceptance of the technology to be funded; and the capacity of project principals to complete and operate the project.

If the outcomes of either the environmental review or the due diligence and risk management review are unsatisfactory, or it is determined that the applicant has undertaken unacceptable pre-award activities (see below), a project may be de-selected and the next highest ranked project will be considered.

6. Funding for Pre-Award Activities

Under 7 CFR § 1709.10(a), Grant funds may not be used to pay costs of preparing the application package, or for any finders’ fees or incentives for persons or entities assisting in the preparation or submission of an application.

Applicants are cautioned that they undertake any pre-award project activities at their own risk, as all finalist selections are subject to a satisfactory environmental review and determination before any award can be made. Undertaking certain project activities before the required environmental review is complete could result in a finalist being “de-selected.” (7 CFR § 1709.10). Program regulations provide that RUS will not pay any project construction costs of the project incurred before the date of grant award except as provided in 7 CFR § 1709.10(d)(1) and (d)(2).

7. Combination with other Financial Assistance

Consistent with USDA policy and program regulations, grant funds awarded under this program generally cannot be used to replace other USDA assistance or to refinance or repay outstanding loans under the RE Act. Grant funds may, however, be used in combination with other USDA assistance programs including electric loans.

Grants may be applied toward grantee contributions under other USDA programs depending on the specific 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 by increasing the utility’s contribution for line extensions or system expansions to its distribution system financed in whole or part by an electric loan under the RE Act.

8. Buy American Requirement

Executive Order 13858 directs federal agencies to encourage recipients of federal funds to the greatest extent practicable to use those funds to purchase goods and products that are produced in the United States. As a result, RUS will apply its statutory Buy American requirement, promulgated under 7 CFR part 1787. Non-American products purchased with grant funds under this program may only be purchased under a waiver that conforms to the regulations at 7 CFR part 1787. “American” for the purposes of this program is the United States, as well as any country that has an agreement with the United States that ensures reciprocal access for United States products and services and suppliers to the markets of that country, as determined by the United States Trade Representative. A reference list of eligible countries may be found at the USDA Rural Development website maintained for the Electric Program for this purpose:

https://www.rd.usda.gov/files/UEP_Engineering_EligibleCountries.pdf

9. Unique Entity Identifier

All applicants must have an active registration with current information in the System for Award Management (SAM) (previously the Central Contractor Registry (CCR)) at https://www.sam.gov/SAM. A Dun and Bradstreet (D&B) Data Universal Numbering System (DUNS) number is presently a pre-requisite for a successful SAM registration. It is important to note that it takes time for these applications for a DUNS number and SAM registration to be processed; it is important that those considering applying under this FOA give themselves sufficient lead time (six weeks is recommended) to accomplish an active SAM registration by the application deadline in this FOA. For more information on obtaining a DUNS number and SAM registration, see Part D, Section 3 below.

The U.S. government is moving to a new unique entity identifier for federal awards management, including grant awards, which will ultimately become the primary key to identify entities throughout the federal awarding lifecycle in SAM.gov/SAM, other Integrated Award Environment (IAE) systems, on required forms, and in downstream government systems.

Through December 2020, IAE systems will be transitioning from the DUNS to a SAM-generated Unique Entity ID (UEI). This new entity identifier will be the authoritative identifier once the transition is complete. USDA expects that active SAM registrants will receive notification of their newly issued UEI in the ordinary course at some date prior to December 31, 2020. Until then, a DUNS number is expected and required on all program forms.

C. Eligibility Information

1. Eligible Applicants

a. All Applicants

Applicant eligibility under this program is established by the RE Act (7 U.S.C.

§§ 913 and 918a), High Energy Cost Grant Program regulations at 7 CFR § 1709.106, and this notice.

An eligible applicant is any one 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 tribe1, a tribally owned entity, and or Alaska Native Corporation;

• An individual or group of individuals applying on behalf of unincorporated community associations, and not for the primary benefit of a single household or business; or

• Any of the above entities located in a U.S. Territory or other area authorized by law to participate in RUS programs or under the RE Act.

All applicants must demonstrate the legal authority and capacity to enter into a binding grant agreement with RUS at the time of the award and to carry out the proposed grant funded project according to its terms to be an eligible applicant. The application must include information and/or documentation supporting your eligibility, legal existence, and capacity to enter into a grant agreement.

Individuals are eligible grant applicants under this program. However, any

1 As used in the notice “Indian Tribe” or “tribal” 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 [43 U.S.C. §§ 1601 et seq.], that is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians.’’ proposed grant project must provide community benefits and not be for the primary benefit of an individual household. As a practical matter, because this program addresses community energy needs and to more readily facilitate compliance with Federal grant requirements, individuals will likely find it preferable to establish an independent legal entity, such as a corporation, to complete the grant project if the project is selected.

If the project proponent contemplates a structured financing such that a yet to be established project entity will be the grantee of record or the primary entity managing or providing grant services under contract to the grantee, this must be fully disclosed and explained in the original application. Grant awards are not transferable. The new entity must be in existence and legally competent to enter into a grant agreement with RUS under appropriate State, Tribal, and Federal laws before a final grant award can be approved.

Corporations that have been convicted of a Federal felony within the past 24 months are not eligible applicants. Any corporation that has any unpaid federal tax liability that has been assessed, for which all judicial and administrative remedies have been exhausted or have lapsed, and that is not being paid in a timely manner pursuant to an agreement with the authority responsible for collecting the tax liability, is not eligible for financial assistance. All corporate applicants must complete Form AD-3030 “Representations Regarding Felony Conviction and Tax Delinquent Status for Corporate Applicants.”

In addition, under program regulations at 7 C.F.R. § 1709.7, an outstanding judgment obtained against an applicant by the United States in a Federal Court (other than in the United States Tax Court), which has been recorded, shall cause the applicant to be ineligible to receive a grant under this program until the judgment is paid in full or otherwise satisfied.

b. Substantially Underserved Trust Area Applicants

This notice provides priority points for complete and otherwise eligible applications from an entity that has been accepted by the Administrator as eligible for SUTA consideration pursuant to section 306F of the RE Act (7 U.S.C. § 936f) and regulations concerning SUTA applications at 7 CFR part 1700, subpart D. An eligible SUTA community is located on “trust lands” (e.g., an Indian Reservation, Hawaiian Homelands, Alaska Regional or Village Corporation lands, or other lands held in trust by or subject to restrictions imposed by the United States) and “lacks an adequate level or quality of service.”

The applicant must submit a letter to the RUS Administrator that it is seeking consideration under provisions of 7 CFR part 1700, subpart D. The letter must be accompanied by a copy of the application package submitted in response to this notice.

The request must include all information required by the SUTA regulations establishing that the project is for an eligible trust area, documenting its high need for High Energy Cost Grant Program funds, and identifying the discretionary authorities that it seeks to have applied to its application. More information on how to document eligibility for SUTA consideration may be found in the FY 2020 Application Guide and at the following USDA website: https://www.rd.usda.gov/about-rd/initiatives/substantially-underserved-trust-area-suta and 7 CFR part 1700, subpart D.

The Administrator will review the request to determine whether the applicant is eligible to receive consideration under SUTA. RUS will notify the applicant in writing whether (1) the application has been accepted to receive special SUTA consideration or

(2) the application has not been accepted for consideration under the SUTA regulation. If the SUTA request is not granted, the applicant may withdraw its application. If the application is still eligible without SUTA consideration and the applicant does not withdraw the application, RUS will review and score the application along with others received under this notice.

2. Cost Sharing and Matching

This grant program has no cost sharing or matching funds requirement as a condition of eligibility. However, RUS will consider other financial resources available to the grant applicant and any voluntary pledge of matching funds or other contributions in assessing the applicant’s commitment and financial capacity to complete the proposed project. If a successful applicant proposes to use matching funds or other cost contributions in its project, the grant agreement will include conditions requiring documentation of the availability of the matching funds and actual expenditure of matching funds or cost contributions. RUS may require the applicant to provide additional documentation confirming the availability of any matching contribution offered prior to approval of a project award. If an applicant fails to provide timely documentation of the availability of matching contributions, the RUS may, in its sole discretion, decline to award the project if uncertainties over the availability of the match render the project financially unfeasible or impose additional conditions.

3. Other

a. Eligible Communities To establish community eligibility, the application must (1) clearly identify and define the geographic area that will be included in the grant project and (2) demonstrate that each of the communities in the proposed area meets one or more of the high energy cost benchmarks identified in this Notice. The smallest area that may be designated as an area is a 2010 Census block unless otherwise satisfactory delineated in the application such that data for eligibility determinations is credibly supported. Projects must serve eligible communities and not be for the primary benefit of an individual or business.

Consult the program regulations at 7 CFR part 1709 and the 2020 Application Guide for definitions used in this program.

The RE Act defines an extremely high energy cost community as one in which “the average residential expenditure for home energy2 is at least 275 percent of the national average residential expenditure for home energy (as determined by the Energy Information Agency using the most recent data available)” 7 U.S.C. § 918a.

2 “Home energy” means any energy source or fuel used by a household for purposes other than transportation, 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.

RUS periodically establishes community eligibility benchmarks based on the latest available information from the Energy Information Administration (EIA) of the U.S. Department of Energy. 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 and are set at 275 percent of the relevant national average household energy expenditures. RUS has revised the eligibility benchmarks for 2020 based on the latest EIA data. The new benchmarks are shown in Table 1.

The EIA’s Residential Energy Consumption and Expenditure Surveys (RECS) and reports provide the baseline national average household energy consumption data that were used 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. EIA published its latest available RECS home energy expenditure survey results in 2018.

RUS used the latest EIA data on 2018 residential energy prices to estimate national average household energy costs to establish the benchmarks shown in Table 1:

Table 1 National Average Annual Household Energy Expenditures and

Extremely High Energy Cost Eligibility Benchmarks Effective for Applications Submitted on or after the FY2020 FOA Publication Date

AVERAGE ANNUAL HOUSEHOLD EXPENDITURE 1

Type of Fuel

Estimated national annual average household expenditure Per year

RUS extremely high energy cost benchmark (275% of national average) Per year

Electricity $1,374 $3,779

Natural Gas $596 $1,639

Fuel Oil $1,206 $3,317

LPG/Propane $670 $1,843

Total Household Energy Use $1,856 $5,104

1 EIA Residential Energy Consumption Survey, 2015 data released May 2018. Table

CE2.6

2 EIA Electric Power Monthly Table 5.3, 2019 9-month year-to-date (YTD) average as of September 2019 3 EIA Natural Gas Monthly Table 3, 2019 9-month YTD average as of September 2019 4 EIA Petroleum & Other Liquids, U.S. No 2 Heating Oil, average of 6 winter months for which data was collected in 2019 5EIA Petroleum & Other Liquids, U.S. Propane Residential Price, average of 5 winter months for which data was collected in 2019 6 EIA Residential Energy Consumption Survey, 2015 data released May 2018. Table

CE1.1

b. High Energy Cost Benchmarks The benchmarks discussed below are used to establish threshold energy costs which are a fundamental threshold for determining community eligibility. These benchmarks were calculated by RUS using EIA’s latest estimates of national average residential energy consumption and energy prices. The benchmarks recognize the diverse factors that contribute to extremely high home energy costs in rural communities. In some cases, there may be limited available published data on local community energy

ANNUAL AVERAGE PER UNIT RESIDENTIAL ENERGY COSTS

Fuel (units)

2018 national average unit cost Per unit

RUS extremely high energy cost benchmark

(275% of national average) per unit

Electricity (Kilowatt hours) 2

$0.1308

$0.3597

Natural Gas (thousand cubic feet)3

$10.89

$29.95

Fuel Oil (gallons)4

$3.10

$8.53

LPG/Propane (gallons)5

$2.21

$6.09

Total Household Energy (million Btus)6

$24.07

$66.19 consumption and expenditures. High energy cost communities may demonstrate their eligibility by using one or more benchmarks. A choice of benchmarks is allowed to reduce the burden on potential applicants in meeting this requirement for quantifying the high cost of energy in their area.

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.

A community or area will qualify as an extremely high cost energy community if it meets one or more of the energy cost eligibility benchmarks described below.

i. Extremely High Average Annual Household Expenditure for Home Energy The area or community exceeds one or more of the following:

• Average annual residential electricity expenditure of $3,779 per household;

• Average annual residential natural gas expenditure of $1,639 per household;

• Average annual residential expenditure on fuel oil of $3,317 per household;

• Average annual residential expenditure on propane or liquefied petroleum gas (LPG) as a primary home energy source of $1,843 per household; or

• Average annual residential energy expenditure (for all non-transportation uses) of $5,104 per household.

ii. Extremely High Average per unit Energy Costs The average residential per unit cost for major commercial energy sources in the area or community exceeds one or more of the following:

• Annual average cost per kilowatt hour for residential electricity customers of $0.3597 per kilowatt hour (kWh);

• Annual average residential natural gas price of $29.95 per thousand cubic feet;

• Annual average residential fuel oil price of $8.53 per gallon;

• Annual average residential price of propane or LPG as a primary home energy source of $6.09 per gallon; or

• Total annual average residential energy cost on a Btu basis of $66.19 per million Btu. 3

c. Supporting Energy Cost Data Benchmark data for each community in the designated area must be submitted in support of their eligibility under this program. Grant applicants are expected to provide supporting information sourced in the local community, or specific to that community, to support their applications. The source(s) for these data must be identified or referenced to allow RUS to verify representations in the application.

Generally, the applicant will be expected to use historical residential energy cost or expenditure information for the local energy provider serving the community or area

3 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.

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 2020 Application Guide includes a list of EIA resources on residential energy consumption and costs that may be of assistance.

Where information is unavailable or does not adequately reflect the actual costs for average home energy use in a local community, RUS will consider estimated commercial energy costs. The 2020 Application Guide includes examples of circumstances where estimated energy costs can be used.

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.

d. Use of Estimated Home Energy Costs An applicant may substitute estimates of home energy costs based on engineering standards where historical community energy cost data are incomplete or lacking or where community-wide data does not accurately reflect the costs of providing home energy services in the area. The estimates should use available community, local, or regional data on energy expenditures, consumption, housing characteristics and population. Estimates are also appropriate where the 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 area is off grid 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 cost of providing a necessary upgrade or replacement of energy infrastructure to maintain or extend service that would raise costs above one or more benchmarks. Information supporting high energy cost eligibility is subject to independent review by RUS.

Applications that contain information 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 an applicant in determining eligibility, technical feasibility, and adequacy of proposed budget estimates.

e. Eligible Projects and Activities Eligible projects must serve and benefit an eligible community that meets the extremely high energy cost eligibility requirements described in this notice. Projects that primarily benefit a single household or business are not eligible. Additional information and examples of eligible project activities are contained in the 2020 Application Guide.

Grant funds may be used to acquire, construct, extend, upgrade, or otherwise improve energy generation, transmission, or distribution facilities serving eligible communities. All energy generation, transmission, and distribution facilities and equipment, used to provide electricity, natural gas, home heating fuels, and other energy service to eligible communities are eligible. Projects providing or improving energy services to eligible communities through on-grid and off-grid renewable energy projects, energy efficiency, and energy conservation projects are eligible. A grant project is eligible if it improves, or maintains energy services, or reduces the costs of providing energy services to eligible communities.

Funds may cover up to the full costs of any eligible projects subject to the statutory limitation that no more than 4 percent of grant funds may be used for the planning and administrative expenses of the grantee. Because of this limitation, applicants must detail any indirect costs.

The program regulations at 7 CFR part 1709 provide more detail on allowable use of grant funds, limitations on grant funds, and ineligible grant purposes. Grant funds may not be used to refinance or repay the applicant’s outstanding loans or loan guarantees under the RE Act.

In general, grant funds may not be used to support projects that primarily benefit areas outside of eligible communities. However, grant funds may be used to finance an eligible community’s proportionate share of a larger energy project.

f. Eligible Technologies Grant funds under this program may only be used for projects using proven and commercially available technology. Activities or equipment that would commonly be considered as research, development, or demonstration, or commercialization activities are not eligible. RUS, in its sole discretion, will determine if a project consists of ineligible research, development, demonstration, or commercialization activities or relies on unproven technology, and that determination shall be final.

g. Ineligible Grant Purposes for High Energy Cost Grants Grant funds cannot be used for: preparation of the grant application, fuel purchases, routine maintenance or other operating costs, or the purchase of equipment, structures or real estate not directly associated with provision of residential energy services. Program regulations at 7 CFR part 1709 have additional information on eligible uses of grant funds.

h. Consideration of Prior Performance RUS may consider prior performance of an applicant under any other USDA grant in deciding whether an application will be reviewed and scored under this FOA.

Where the track record of an applicant (or principals of an applicant) reflects inadequate performance as a historical matter, RUS may decide to not consider or score additional applications from the same party. Inadequate performance may consist of a disallowance of grant funds that was never recovered by the Government, failure to complete a project, failure to respond to USDA’s request for information relating to a project, or suspension or termination of a grant project for material failures to comply with the terms and conditions of the grant award.

D. Application and Submission Information

All applications must be prepared and submitted in compliance with this notice and the 2020 Application Guide. The 2020 Application Guide contains additional information on the grant programs, sources of information for use in preparing applications, examples of eligible projects, and copies of the required application forms.

1. Address to Request Application Package

The 2020 Application Guide, copies of required forms, and other information on the High Energy Cost Grant Program are available from these sources:

a. via the Internet at the program website (http://www.rd.usda.gov/programs-services/high-energy-cost-grants);

b. via Grants.gov http://www.grants.gov (under CFDA No. 10.859); and

c. by request from Robin Meigel, Finance Specialist, Rural Utilities Service, Electric

Program, United States Department of Agriculture, 1400 Independence Avenue, SW, STOP 1568, Room 0270 South Building, Washington, DC 20250–1568, or 202-720- 9545, or email Energy.grants@usda.gov.

2. Content and Form of Application Submission

Applicants must follow the directions in this notice and the 2020 Application Guide in preparing and submitting their application packages.

a. Pre-applications

This program does not require or accept pre-applications.

b. The Application as a whole

Application packages must be prepared consistent with the requirements of this notice, the 2020 Application Guide and program regulations at 7 CFR § 1709.117.

Applicants are encouraged to consult the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR part 200) for additional requirements applicable to grants under this program. Application packages that do not comply with the eligibility and content provisions of this notice will be rejected. As used in this notice “narrative” means a written statement, description, or other written material prepared by the applicant, for which no form exists.

Format. The completed application should be assembled in the order specified below in Table 2 in this Part D with all pages numbered sequentially or by section. Application sections and attachments should be formatted for 8½ by 11-inch paper (letter size) with 1-inch margins. Preferred type faces are Times New Roman 12, Calibri 11, Arial 11, Verdana 10 or Courier 10. Narratives may be single or double spaced. Project Narratives should not exceed 25 pages in length (exclusive of required forms and Project Summary) with not more than 10 pages of attachments. Paper application packages will be scanned; they should be printed single-sided on white letter size paper. Electronic applications must follow formatting directions, including acceptable file attachment types, specified on Grants.gov. Failure to follow these instructions may result in rejection of the application.

Number of copies. Paper application packages submitted to RUS must include the original signed application and one (1) copy. Only one electronic grant application submission through the Grants.gov website is required.

c. Component parts of the application

The completed application consists of the following sections and forms.

Narrative sections should be formatted as indicated above and assembled in the sequence specified.

Table 2 lists the required content and form of a complete application. Applicants may use this table to assure that their applications are complete and assembled in order:

Table 2 Required Content and Form of Application Package

Component pieces of the application

Complete Applications must include all listed sections, forms, and certifications in the order shown in this table.

Part A. Completed Form SF-424 “Application for Federal Assistance” Part B. Project Abstract and Eligibility Statement (up to 3 pages total) Part C. Project Narrative Proposal I. Table of Contents II. Executive Summary (1 page) III. Project Description (up to 25 pages)

A. Community Eligibility and Assessment of Community Needs B. Project Design, Technical Feasibility and Responsiveness to Community Needs C. Applicant Organization and Eligibility D. Organizational Capabilities and Project Management Plan E. Organizational Experience F. Key Staff Experience G. Project Goals, Objectives and Performance Measures H. Project Reporting Plan I. Project Budget and Financial Capability J. Rural Economic Development Initiatives K. Priority Considerations

Part D. Additional Required Forms and Certifications

EITHER Forms SF-424A (for non-Construction Programs)

OR

Forms SF-424C and SF-424D, (for Construction Programs)

Form SF-LLL, “Disclosure of Lobbying Activities”

Evidence of Active and Unexpired SAM Registration with https://www.sam.gov/SAM

Form AD-3030 (for corporate applicants only) “Representations Regarding Felony Conviction and Tax Delinquent Status for Corporate Applicants”

Rural Utilities Service Form 266 “Assurance Agreement” relating to Civil Rights

Rural Development Form RD 400-1 relating to a prescribed equal opportunity clause in construction contracts where Federal financial assistance exceeds $10,000

RUS Environmental Questionnaire Part E. Supplementary Materials (up to 10 pages)

Application Part A--Completed Form 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: All applicants, except individuals, must include a DUNS number on the SF-424 to be considered complete. See Section 3 below in this Part D for information on obtaining a DUNS Number. Copies of this form are available through RUS’s web site (http://www.rd.usda.gov/programs-services/high-energy-cost-grants) or through Grants.gov, or by request from the Agency contact listed in this Part D above.

Application Part B--Project Summary and Eligibility Statement

The Project Summary and Eligibility Statement is a short narrative section that establishes the application’s eligibility. It describes the applicant, the eligible high energy cost community, the proposed project, and all requested priority considerations.

The Project Summary should be no longer than three (3) pages.

This summary will be used by RUS for initial screening purposes only to make an initial determination of eligibility without reference to other sections of the application.

After review of this Part B, RUS will decide whether to accept the application for further review and scoring.

Part B of the application will not be referred to for purposes of scoring the application. All information relating to eligibility and scoring must be included in the full project narrative proposal more fully discussed below.

In Part B applicants must provide a summary of the proposed project. The project must be described in enough detail to establish that it is an eligible project under the program regulations (7 CFR part 1709) and this Notice. Applicants should take great care in preparing this Part B summary to include all necessary elements relating to eligibility.

Part B of the Application must include the following information.

Applicant Eligibility This section of Part B must briefly describe the applicant, its capabilities, and provide information demonstrating that the applicant is an eligible entity under program regulations at 7 CFR § 1709.106 and this notice. Part B of the application must also state that the applicant is free of any debarment or other restriction on its ability to contract with the Federal government as identified in Part C, Section 1(a) of this FOA and must also state that the applicant has an active and unexpired registration with www.sam.gov/SAM.

Community Eligibility

This summary must describe the eligible community or communities to be served by the project including name, location, and population based on the 2010 Census. Also required is the name and population of the local government division (e.g., city, town or county for unincorporated areas) where the project is located. The Part B Summary must specifically identify the average community residential energy costs that exceed one or more of the benchmark criteria for extremely high energy costs as described in this notice. Local energy providers and sources of high energy cost data and estimates should be clearly identified.

Project Eligibility

Provide a brief overview of the project including the project title, total project costs, the amount of grant funds requested, amount and source of matching contributions, major project goals and tasks, and the location of project activities and facilities to be supported with grant funds. It must state how the grant project will provide benefits to the eligible community and offset or reduce the target community’s extremely high energy costs. The summary should briefly identify any state, local or tribal rural development initiative that the project supports.

Priority Considerations

List all Priority Considerations for which the Applicant is seeking additional points in project scoring. Priority points to be awarded under this notice are set forth in Part E of this notice. Further discussion of Priority Considerations should be reserved for Application Part C—Proposed Project Narrative.

Contact Information

The project summary should list the Applicant’s name, address, telephone number and email address and the contact person for the application. Include the contact person’s address, telephone number and email address if different from the applicant.

Application Part C—Proposed Project Narrative

The proposed project narrative describes in detail the proposed grant project, the project benefits, and the proposed budget. Part C follows sequentially after Parts A and B in assembling the package and contents should be assembled and paginated in the order described below.

In preparing the proposed project narrative, Applicants must address individually and in narrative form each of the proposal evaluation and selection criteria contained in Table 3 found in Part E of this FOA. The project narrative will be scored competitively, and the results used to rank applications for finalist selections.

The narrative proposal should be formatted according to the instructions in Part D of this FOA for Part C of the Application. The narrative proposal should not exceed 25 pages, exclusive of required forms. Successful application narratives have been shorter in length. Applicants may use the Supplementary Materials section to include up to ten

(10) pages of letters of support and other information for reviewers. Letters from Members of Congress and senior State government officials will not count against this page limit.

The project narrative proposal includes the following…