FY2017 NOSA Oct 12 2017.pdf

This section of the FEDERAL REGISTER contains documents other than rules or proposed rules that are applicable to the public. Notices of hearings and investigations, committee meetings, agency decisions and rulings, delegations of authority, filing of petitions and applications and agency statements of organization and functions are examples of documents appearing in this section.

Notices Federal Register

47446

Vol. 82, No. 196

Thursday, October 12, 2017

DEPARTMENT OF AGRICULTURE

Submission for OMB Review;

Comment Request

October 6, 2017.

The Department of Agriculture has submitted the following information collection requirement(s) to OMB for review and clearance under the Paperwork Reduction Act of 1995, Public Law 104–13. Comments are requested regarding (1) 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; (2) the accuracy of the agency’s estimate of burden including the validity of the methodology and assumptions used; (3) ways to enhance the quality, utility and clarity of the information to be collected; and (4) 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 regarding this information collection received by November 13, 2017 will be considered. Written comments should be addressed to: Desk Officer for Agriculture, Office of Information and Regulatory Affairs, Office of Management and Budget (OMB), New Executive Office Building, 725 17th Street NW., Washington, DC 20502. Commenters are encouraged to submit their comments to OMB via email to: OIRA_Submission@ OMB.EOP.GOV or fax (202) 395–5806 and to Departmental Clearance Office, USDA, OCIO, Mail Stop 7602, Washington, DC 20250–7602. Copies of the submission(s) may be obtained by calling (202) 720–8958.

An agency may not conduct or sponsor a collection of information unless the collection of information displays a currently valid OMB control number and the agency informs potential persons who are to respond to the collection of information that such persons are not required to respond to the collection of information unless it displays a currently valid OMB control number.

Animal and Plant Health Inspection Service

Title: National Veterinary Service Laboratories; Bovine Spongiform Encephalopathy Surveillance Program.

OMB Control Number: 0579–0409.

Summary of Collection: Under the

Animal Health Protection Act (7 U.S.C.

8301 et seq.) the Animal and Plant Health Inspection Service (APHIS) is authorized, among other things, to carry out activities to detect, control, and eradicate pests and diseases of livestock within the United States. APHIS’ National Veterinary Services Laboratories (NVSL) safeguard U.S.

animal health and contribute to public health by ensuring that timely and accurate laboratory support is provided by their nationwide animal health diagnostic system. USDA complies with the standard set by the World Organization for Animal Health for bovine spongiform encephalopathy surveillance.

Need and Use of the Information:

APHIS will collect information using forms VS 17–146 and VS 17–146a, BSE Surveillance Submission Form/ Continuation Sheet and VS 17–131, BSE Surveillance Data Collection Form.

APHIS will use the information collected to safeguard the U.S. animal health population against BSE. Without the information APHIS would be unable to monitor and prevent the incursion of BSE into the United States.

Description of Respondents: Business or other for-profit; State, Local or Tribal Government.

Number of Respondents: 1,035.

Frequency of Responses:

Recordkeeping; Reporting: On occasion.

Total Burden Hours: 3,026.

Ruth Brown, Departmental Information Collection Clearance Officer.

[FR Doc. 2017–22052 Filed 10–11–17; 8:45 am]

BILLING CODE 3410–34–P

DEPARTMENT OF AGRICULTURE

Rural Utilities Service

Announcement of Grant Application Deadlines and Funding Levels for the Assistance to High Energy Cost Rural Communities Grant Program

AGENCY: Rural Utilities Service, USDA.

ACTION: Notice of Solicitation of Applications (NOSA).

SUMMARY: 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 2017 (FY17) 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. 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.

DATES: 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 December 11, 2017, or hand delivered to RUS by this deadline, to be eligible under this NOSA. Late or incomplete applications will not be eligible for FY 2017 grant funding.

• Electronic applications must be submitted through Grants.gov no later than midnight Eastern Standard Time December 11, 2017 to be eligible under this notice for FY 2017 grant funding.

Late or incomplete electronic applications will not be eligible.

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47447 Federal Register / Vol. 82, No. 196 / Thursday, October 12, 2017 / Notices

• Applications will not be accepted by electronic mail.

Applications will be accepted upon publication of this notice until midnight (EST) of the closing date of December 11, 2017. If the submission deadline falls on Saturday, Sunday, or a Federal holiday, the application is due the next business day.

ADDRESSES: Copies of the 2017 Application Guide, required forms and other information on the High Energy Cost Grant Program may be obtained by the following:

(1) The program Web site (http:// www.rd.usda.gov/programs-services/ high-energy-cost-grants) or

(2) Grants.gov (http://www.grants.gov) by searching under Opportunity Number RD–RUS–HECG17; or

(3) Contacting the RUS Electric Program at (202) 720–9452 to request paper copies of the 2017 Application Guide or other materials.

Completed applications may be submitted in the following ways:

• Paper applications are to be submitted to the Rural Utilities Service, Electric Programs, United States 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 Grant Program.’’

• Applications may be submitted electronically through Grants.gov.

Information on how to submit applications electronically is available on the Grants.gov Web site (http:// www.grants.gov). Applicants must successfully pre-register with Grants.gov to use the electronic applications option. Application information may be downloaded from Grants.gov without preregistration.

FOR FURTHER INFORMATION CONTACT:

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) 720–9542, Fax (202) 690–7442, email energy.grants@ wdc.usda.gov.

SUPPLEMENTARY INFORMATION:

Overview

Federal Agency Name: United States Department of Agriculture, Rural Utilities Service.

Funding Opportunity Title: Assistance to High Energy Cost Rural Communities Program.

Announcement Type: Initial announcement.

Funding Opportunity Number: RD–

RUS–HECG17.

Catalog of Federal Domestic Assistance (CFDA) Number: 10.859. The CFDA title for this program is ‘‘Assistance to High Energy Cost Rural Communities.’’

Date: Applications must be postmarked and mailed or shipped, or hand delivered to the RUS, or filed with Grants.gov by December 11, 2017.

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 provide assistance for communities most challenged by extremely high energy costs, defined by statute as average residential home energy expenditures that are 275 percent or more 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 provide assistance to 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% increase in energy efficiency for generation assets, this includes repowering aging diesel plant;

• 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.

More information on scoring and priorities is found in Section 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 Federal Grant Regulations at 2 CFR part 200.

The total amount of funds available for high energy cost grants under this notice is up to $10 million. The maximum amount of grant assistance that may be requested or awarded for a grant application under this notice is $3,000,000. The minimum amount of assistance for a grant application under this program is $100,000.

Applicants must provide a complete grant application package with a narrative grant proposal prepared according to the instructions in this notice and the 2017 Application Guide, including all required forms and certifications. The 2017 Application Guide is available electronically on the program Web site (http:// www.rd.usda.gov/programs-services/ high-energy-cost-grants) link or through Grants.gov, or by request from the Agency contact. Applicants are advised that the application requirements in this notice and the 2017 Application Guide have been revised from those in the NOSA published October 13, 2015 (the ‘‘2015 Notice’’), and the 2015 Application Guide.

No more than one award will be made per applicant or project. Applicants may submit multiple applications, provided

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47448 Federal Register / Vol. 82, No. 196 / Thursday, October 12, 2017 / Notices

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.’’ each is for a different project, but only one award per applicant will be approved.

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 nine grant awards obligated under the 2015 Notice and these awards ranged from $449,808 to $3,000,000.

The RUS reserves the right not to award all the funds made available under this notice. The final decision to make an award is at the discretion of the Administrator (7 CFR 1709.121). 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. Upon such consideration, the Administrator may elect to offer an award of less than the full amount of the grant requested by an applicant.

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.

No Reconsideration of 2015 Applications

The Administrator has determined that all applicants must apply under this 2017 NOSA. There will be no reconsideration of applications submitted under the 2015 Notice. The evaluation criteria in this NOSA are sufficiently different such that applications submitted in response to the 2015 Notice would be at a disadvantage when rated among those applications prepared with the current criteria in mind.

Substantially Underserved Trust Areas

(SUTA)

This program is subject to the provisions for Substantially Underserved Trust Areas of 7 U.S.C.

936f and regulations 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. Failure to submit the separate letter and supporting material as described under Part C, Section (1)(ii) below will result in no additional points being awarded for SUTA consideration.

This requirement is separate and independent of the application itself as more fully described below.

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.

The Administrator will review the rankings and the recommendations of the rating panel. The Administrator will then select grant finalists in rank order to the extent of available funds. 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 (date of grant award).

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 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.

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.

C. Eligibility Information

1. Eligible Applicants

i. 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 tribe 1, 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 programs of the Rural Utilities Service or under the REA Act.

All applicants must demonstrate the legal authority and capacity to enter into

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47449 Federal Register / Vol. 82, No. 196 / Thursday, October 12, 2017 / Notices

2 ‘‘Home energy’’ means any energy source or fuel used by a household for purposes other than

Continued 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 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 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 in order to readily facilitate compliance with Federal grant requirements, individuals will likely find it preferable to establish an independent legal entity, such as a corporation, to actually carry out 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 the Federal Government under appropriate State 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 CFR 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 or loan under this part until the judgment is paid in full or otherwise satisfied.

Before submitting an application, 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. A Dun and Bradstreet (D&B) Data Universal Numbering System (DUNS) number is 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 submitting an application under this NOSA give themselves a conservative lead time (six weeks is recommended) in order to accomplish an active SAM registration by the application deadline in this NOSA. For more information on obtaining a DUNS number and SAM registration see Part D, Section 3 below.

ii. 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 2017 Application Guide available at 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 successfully. 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 availability of the match render the project financially unfeasible and impose additional conditions.

3. Other

i. 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. 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 2017 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 energy 2 is at least 275 percent of

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47450 Federal Register / Vol. 82, No. 196 / Thursday, October 12, 2017 / Notices 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.

the national average residential expenditure for home energy’’ 7 U.S.C.

918a.

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 2017 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 2012. RUS used the latest EIA data on 2016 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 OCTOBER 12, 2017

Fuel Estimated national annual average household expenditure ($ per year)

RUS extremely high energy cost benchmark

(275% of national average) ($ per year)

Average Annual Household Expenditure

Electricity .......................................................................................... $1,420 $3,904 Natural Gas ...................................................................................... 665 1,828 Fuel Oil ............................................................................................ 1,056 2,903 LPG/Propane ................................................................................... 1,131 3,110

Total Household Energy Use ................................................... 2,017 5,546

Fuel (units) 2016 national average unit cost ($ per unit)

RUS extremely high energy cost benchmark

(275% of national average) ($ per unit)

Annual Average Per Unit Residential Energy Costs

Electricity (Kilowatt hours) ............................................................... $0.126 $0.345 Natural Gas (thousand cubic feet) .................................................. 10.07 27.69 Fuel Oil (gallons) ............................................................................. 2.27 6.25 LPG/Propane (gallons) .................................................................... 2.05 5.64

Sources: RUS estimates based on latest data from: Energy Information Administration, United States Department of Energy, 2009 Residential Energy Consumption Survey Data—Detailed Tables, available at: http://www.eia.gov/consumption/residential/data/2009/; Average residential en-ergy prices from EIA Monthly Energy Review, available at https://www.eia.gov/totalenergy/data/monthly/; EIA Weekly Heating Oil and Propane Prices available at https://www.eia.gov/dnav/pet/pet_pri_wfr_dcus_nus_w.htm and EIA Winter Fuels Outlook 2016 available at https:// www.eia.gov/outlooks/steo/special/winter/2016_winter_fuels.pdf.

Extremely high energy costs in rural and remote communities typically result from a combination of factors including high energy consumption, high per unit energy costs, limited availability of energy sources, extreme climate conditions, and housing characteristics.

There is diversity in how and the degree to which these factors affect a given community.

a. 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 consumption and expenditures. High energy cost communities may demonstrate their eligibility by using one or more benchmarks. A choice of benchmarks is allowed so as 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 $3,904 per household;

• Average annual residential natural gas expenditure of $1,828 per household;

• Average annual residential expenditure on fuel oil of $2,903 per household;

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47451 Federal Register / Vol. 82, No. 196 / Thursday, October 12, 2017 / Notices

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.

• Average annual residential expenditure on propane or liquefied petroleum gas (LPG) as a primary home energy source of $3,110 per household;

or

• Average annual residential energy expenditure (for all non-transportation uses) of $5,546 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 $0.345 per kilowatt hour (kWh);

• Annual average residential natural gas price of $27.69 per thousand cubic feet;

• Annual average residential fuel oil price of $6.25 per gallon;

• Annual average residential price of propane or LPG as a primary home energy source of $5.64 per gallon; or

• Total annual average residential energy cost on a Btu basis of $61.87 per million Btu.3

b. Supporting Energy Cost Data

Benchmark data for each community in the designated area must be submitted in support of their eligibility under this program. The source(s) for this data must be identified or referenced so as to allow RUS to verify these representations in the application.

Grant applicants are expected to provide supporting information sourced in the local community, or specific to that community, to support their applications.

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 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 2017 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

2017 Application Guide includes examples of circumstances where estimated energy costs are 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.

c. 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 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 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.

ii. Eligible Projects

Eligible projects must serve an eligible community and must include only eligible grant purposes. The project must serve communities that meet the extremely high energy cost eligibility requirements described in this notice.

The applicant must demonstrate that the proposed project will benefit the eligible communities. Projects that primarily benefit a single household or business are not eligible. Additional information and examples of eligible project activities are contained in the Application Guide available at https:// www.rd.usda.gov/programs-services/ high-energy-cost-grants.

iii. Eligible Activities

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.

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

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47452 Federal Register / Vol. 82, No. 196 / Thursday, October 12, 2017 / Notices 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. 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 from RUS or other grant sources. The determination of whether a project will be completed in this manner will be made solely by the Administrator.

iv. 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.

v. 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 assistance for a competitive grant application under this program 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. An applicant will only be awarded funding for one project under this notice. The award will be made to the highest ranked application submitted; other applications from the same applicant or project will remain unfunded under this notice.

d. 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, and 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.

e. Pre-Award Activities During Environmental Review

RUS may refuse to provide an award where the selected applicant has taken actions in violation of restrictions on certain project activities prior to completion of pre-award environmental review. See Part F, Section 2(i) of this Notice and 7 CFR 1970.12.

f. 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 NOSA. 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 and score additional applications from the same party. Inadequate performance may consist of a disallowance 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 2017 Application Guide.

The 2017 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 2017 Application Guide, copies of required forms, and other information on the High Energy Cost Grant Program are available from these sources:

i. Via the Internet at the program Web site (http://www.rd.usda.gov/programs-services/high-energy-cost-grants);

ii. via Grants.gov http:// www.grants.gov (under CFDA No.

10.859); and

iii. 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– 720–9452, or email Energy.Grants@ wdc.usda.gov.

2. Content and Form of Application Submission

Applicants must follow the directions in this notice and the 2017 Application Guide in preparing and submitting their application packages.

i. Pre-Applications This program does not require or accept pre-applications.

ii. The Application as a Whole Application packages must be prepared consistent with the requirements of this notice, the 2017 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 in this Part D, Section 2(iii) below with all pages numbered sequentially or by section. Application sections and attachments should be formatted for 81⁄2 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. It is strongly recommended that Project Narratives be no longer than about 30 pages in length (exclusive of required forms and Project Summary) with not more than 10 pages

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47453 Federal Register / Vol. 82, No. 196 / Thursday, October 12, 2017 / Notices 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.