HECG NOFO FY 2025-final-12.30.2024.pdf

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High Energy Cost Grant Program

Fiscal Year 2025 Notice of Funding Opportunity

Funding Opportunity Number: RD-RUS-HECG25

Publication Date: December 30, 2024 Application Due Date: February 28, 2025

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PROGRAM SOLICITATION INFORMATION

Federal Awarding Agency: Rural Utilities Service

Funding Opportunity Title: High Energy Cost Grant Program

Funding Opportunity Number: RD-RUS-HECG25

Announcement Type: Notice of Funding Opportunity (NOFO)

Assistance Listing Number: 10.859

Dates: Completed electronic applications must be filed through www.grants.gov by 11:59 pm Eastern Time (ET) on February 28, 2025.

Completed paper application must be hand delivered or postmarked and mailed, shipped, or sent overnight, no later than 4:30 pm ET on February 28, 2025. Applicants intending to mail, ship or overnight applications must allow sufficient time to permit delivery on or before the deadline.

Acceptance by the USPS or private mailer does not constitute delivery.

Executive Summary:

The Rural Utilities Service (RUS or the Agency), a Rural Development (RD) agency of the United States Department of Agriculture (USDA), announces funding availability under the High Energy Cost Grant (HECG) Program for fiscal year (FY) 2025. These grant funds will be made to qualified types of applicants 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. Funding for FY 2025 will not be known until Congress passes an appropriations act.

The Agency estimates that $8 to $10 million will be available based on FY 2023 and FY 2024 amounts.

All applicants are responsible for any expenses incurred in developing their applications.

Addresses: Electronic Applications must be filed through www.grants.gov.

Paper applications must be postmarked and mailed through the United States Postal Service (USPS) or shipped through an overnight commercial delivery service or hand delivered to the Electric Programs at RUS headquarters in Washington, D.C. located at Rural Utilities Service, Electric Programs; USDA;

1400 Independence Avenue, SW, STOP 1560; Room 4121-South Building; Washington, D.C. 20250-1560.

Mark the outside of the envelope: “Attention: High Energy Cost Grant Program.”

Instructions and additional resources, to include the HECG Program Application Guide, are available at https://www.rd.usda.gov/programs-services/electric-programs/high-energy-cost-grants, under the “To Apply” tab.

APPLICATION CHECKLIST

The application must include the documents in the checklist located below. Failure to submit all required documents will result in the application being deemed ineligible for the grant program. Please review Section 4.2 of this notice for more information and details on the required documents, supporting information, and format for a complete application.

http://www.grants.gov/ www.grants.gov https://www.rd.usda.gov/programs-services/electric-programs/high-energy-cost-grants

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Document Details

☐ Part A. 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,

(H) Project Reporting Plan,

(I) Project Budget and Financial Capability,

(J) Rural Economic Development Initiatives, and

(K) Priority Consideration.

Part D. Additional Required Forms and Certifications

☐ Either Form 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 System for Award Management Registration https://www.sam.gov/SAM

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Document Details

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

☐ Form RD 400-4, Assurance Agreement

☐ HECG Program Environmental Questionnaire

☐ Part E. Supplementary Materials (up to 10 pages)

TIPS FOR APPLICANTS

• To do business with the Federal Government and to submit your application electronically using Grants.gov, you must— o Have a Unique Entity Identifier (UEI) and a Taxpayer Identification Number (TIN);

o Be registered in SAM.gov (System for Award Management), the Government's primary registrant database;

o Provide your UEI number and TIN on your application; and o Maintain an active SAM registration with current information throughout the application review period and, if you are awarded a grant, during the project period.

• Register and submit applications early. DO NOT WAIT UNTIL THE DAY OF THE APPLICATION

DEADLINE.

• Thoroughly read this Notice of Funding Opportunity (NOFO) and follow all the instructions.

• Thoroughly review the guidelines and policies as outlined in this notice to ensure the application is received and eligible for consideration, and to understand allowable and unallowable costs.

• Apply for the correct grant program, Assistance Listing number “10.859” and Funding

Opportunity Number “RD-RUS-HECG25”

• Make sure you have the most recent copy of Adobe Reader installed on your computer and that it is compatible with Grants.gov software. Grants.gov supports Adobe Reader version 9.0.0 and higher.

• Limit Application File Name Characters (50 or less).

• When uploading attachments, click the “Add Attachments” button (do NOT use the “paperclip” icon in Adobe Reader). Acceptable file types include .doc, .docx, .pdf, .jpg, .jpeg, .png, .gif, .xls, .xlsx, .txt, .ppt, and .pptx. If you would like to submit another file type, please contact the program office first for approval.

• Do not password-protect your documents and make sure all tracked-changes are “accepted”.

• Avoid Special Characters in File Names ($, %, &, *, Spanish "ñ", etc.).

• Input the correct UEI number on the SF-424 cover page.

• Review the Grants.gov Applicant User and Registration Guides:

• https://www.grants.gov/applicants/applicant-faqs

• https://www.grants.gov/applicants/workspace-overview http://www.grants.gov/ https://www.grants.gov/applicants/applicant-faqs https://www.grants.gov/applicants/workspace-overview

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TABLE OF CONTENTS

1.0 Program Description

1.1 RD Key Priorities

1.2 Purpose of the Program

1.3 Statutory and Regulatory Authority

1.4 Definitions

1.5 Application of Awards

2.0 Federal Award Information

3.0 EligibilIty Information

3.1 Eligible Applicants, Communities, and Projects

3.2 Cost Sharing or Matching

3.3 Other

4.0 Application and Submission Information

4.1 Address to Request Application Package

4.2 Content and Form of Application Submission

4.3 System for Award Management and Unique Entity Identifier

4.4 Submission Dates and Times

4.5 Intergovernmental Review

4.6 Funding Restrictions

4.7 Other Submission Requirements

5.0 Application Review Information

5.1 Criteria

5.2 Review Selection Processes

5.3 Anticipated Announcement and Federal Award Dates

6.0 Federal Award Administration Information

6.1 Federal Award Notices

6.2 Administrative and National Policy Requirements

6.3 Reporting

7.0 Federal Award Agency Contacts

8.0 Buy America, Buy America Requirements

9.0 Other Information

9.1 Paperwork Reduction Act

9.2 National Environmental Policy Act

9.3 Federal Funding Accountability and Transparency Act

9.4 Civil Rights Act

9.5 Equal Opportunity for Religious Organizations

9.6 Nondiscrimination Statement

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1.0 PROGRAM DESCRIPTION

1.1 RD Key Priorities

The Agency encourages applicants to consider projects that will advance the following key priorities (more details available at https://www.rd.usda.gov/priority-points):

• Creating More and Better Markets. Assist rural communities recover economically through more and better market opportunities and through improved infrastructure;

• Advancing Racial Justice, Placed-Based Equity, and Opportunity. Ensure all rural residents have equitable access to RD programs and benefits from RD funded projects; and

• Addressing Climate Change and Environmental Justice. Reduce climate pollution and increase resilience to the impacts of climate change through economic support to rural communities.

1.2 Purpose of the Program

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.

1.3 Statutory and Regulatory Authority

The HECG Program is authorized under section 19 of the Rural Electrification Act of 1936, as amended (the RE Act) (7 U.S.C. 918a), and implemented by 7 CFR part 1709.

7 CFR part 1700, subpart D establishes the policies and procedures for the RUS implementation of the Substantially Underserved Trust Areas (SUTA) initiative under section 306F of the RE Act (7 U.S.C.

936f).

1.4 Definitions

The definitions applicable to this notice are published at 7 CFR 1709.3, 7 CFR 1700.101, and provided below.

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.

Environmental and Historic Preservation Requirements include the following authorities and any amendments thereto: the National Environmental Policy Act of 1969, (NEPA) (42 U.S.C 4321, et seq), Section 7 of the Endangered Species Act (16 U.S.C. 1531 et seq.), and Section 106 of the National Historic Preservation Act (NHPA)(54 U.S.C. 300101 et seq.), as well as their implementing regulations at 7 CFR part 1970, Environmental Policies and Procedures (including Farmland Protection Policy Act Implementation Policy), 50 CFR part 402, Interagency Cooperation, and 36 CFR part 800, Protection of Historic Properties.

https://www.rd.usda.gov/priority-points https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XVII/part-1709 https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XVII/part-1700/subpart-D https://www.govinfo.gov/content/pkg/USCODE-2014-title7/pdf/USCODE-2014-title7-chap31-subchapIII-sec936f.pdf https://www.govinfo.gov/content/pkg/USCODE-2014-title7/pdf/USCODE-2014-title7-chap31-subchapIII-sec936f.pdf https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XVII/part-1709/subpart-A/section-1709.3 https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XVII/part-1700/subpart-D/section-1700.101

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Force Account is when the owner uses their own employees to construct the project. Skilled laborers are often brought in from around the state and others are hired locally. An outside engineering firm is often involved in project management, construction and grant management.

Narrative means a written statement, description, or other written material prepared by the applicant, for which no form exists.

Owner furnished materials + contractor method is when the owner purchases materials and bids out all construction to a contractor.

1.5 Application of Awards

The Agency will review, evaluate, and score applications received in response to this notice based on the provisions found in 7 CFR part 1709 and as indicated in this notice. Awards under the HECG Program will be made on a competitive basis using specific selection criteria contained in 7 CFR part 1709. The Agency advises all interested parties that the applicant bears the full burden in preparing and submitting an application in response to this notice regardless of whether or not funding is appropriated for the HECG Program in FY 2025.

2.0 FEDERAL AWARD INFORMATION

Type of Awards: Grants

Fiscal Year Funds: FY 2025

Available Funds: The Agency currently estimates that approximately $8 to $10 million will be available for FY 2025. RUS may, at its discretion, increase the total level of funding available in this funding round (or in any category in this funding round) from any available source, including future appropriations, provided the awards meet the requirements of the statute which made the funding available to the Agency.

Award Amounts: 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.

Anticipated Award Date: Award dates will vary depending on the timing of environmental reviews. We expect selected finalists will be determined within 6 months of the deadline for submitting applications.

Performance Period: The performance period will be three-years from the date of the Grant Agreement.

Approvals of any extensions to the original grant terms are the sole discretion of the Agency.

Renewal or Supplemental Awards: There will be no reconsideration of applications submitted under previous funding announcements. All applicants must apply under this FY 2025 notice.

Type of Assistance Instrument: Grant Agreement

Approximate Number of Awards: 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 thirteen (13) selected finalists for awards under the FY 2023 NOFO and these award amounts ranged from $780,000 to $3,000,000.

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3.0 ELIGIBILITY INFORMATION

3.1 Eligible Applicants, Communities, and Projects

(a) Eligible Applicants. Applicant eligibility under this program is established by 7 CFR 1709.106 and this notice. A State or local government may include municipal utility or public power authority. Any of the entities listed in 7 CFR 1709.106 and this notice located in a U.S. Territory or other area authorized by law to participate in RUS programs or under the RE Act may be an eligible applicant.

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 the applicant’s 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 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 where the grantee of record or the primary entity managing or providing grant services under contract to the grantee, has not yet been established, 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 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.

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 under this program until the judgment is paid in full or otherwise satisfied.

(b) Eligible Communities. Eligible communities under this program are established by 7 CFR

1709.107 and this notice. 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 2020 Census block unless otherwise satisfactorily 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.

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 https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XVII/part-1709/subpart-B/section-1709.106 https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XVII/part-1709/subpart-B/section-1709.106 https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XVII/part-1709/subpart-A/section-1709.7 https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XVII/part-1709/subpart-B/section-1709.107 https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XVII/part-1709/subpart-B/section-1709.107

9 | P a g e revised the eligibility benchmarks for FY 2025 based on the latest EIA data. The new benchmarks are shown in Table 1 below.

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. The EIA published its latest available RECS home energy expenditure survey results for 2020. RUS used the latest EIA data for 2023 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 FY 2025 NOFO 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 $1,380 $3,795 Natural Gas $630 $1,733

Fuel Oil $1,224 $3,366 LPG/Propane $735 $2,021 Total Household Energy Use $1,884 $5,181

1 EIA Residential Energy Consumption Survey, 2020 data released March 2023 and revised March 2024.

Table CE2.6

2 EIA Electric Power Monthly Table 5.3, 2023 7-month year-to-date (YTD) average as of July 2024.

3 EIA Natural Gas Monthly Table 3, 2023, 6-month YTD average as of June 2024.

ANNUAL AVERAGE PER UNIT RESIDENTIAL ENERGY COSTS

Fuel (units)

2023 national average unit cost Per unit

RUS extremely high energy cost benchmark

(275% of national average) per unit

Electricity (Kilowatt hours) 2 $0.1634 $0.4494 Natural Gas (thousand cubic feet)3 $13.83 $38.03

Fuel Oil (gallons)4 $4.12 $11.33

LPG/Propane (gallons)5 $2.50 $6.88

Total Household Energy (per million Btus)6

$24.53 $67.46

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4 EIA Petroleum & Other Liquids, U.S. No 2 Heating Oil, average of 6 winter months for which data was collected October 2023 through March 2024.

5EIA Petroleum & Other Liquids, U.S. Propane Residential Price, average of 6 winter months for which data was collected October 2023 through March 2024.

6 EIA Residential Energy Consumption Survey, 2020 data released March 2023 revised March 2024Table

CE1.1.

(c) 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 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.

(1) 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 $3,795 per household;

• Average annual residential natural gas expenditure of $1,733 per household;

• Average annual residential expenditure on fuel oil of $3,366 per household;

• Average annual residential expenditure on propane or liquefied petroleum gas (LPG) as a primary home energy source of $2,021 per household; or

• Average annual residential energy expenditure (for all non-transportation uses) of

$5,181 per household.

(2) 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 $0.04494 per kilowatt hour (kWh);

• Annual average residential natural gas price of $38.03 per thousand cubic feet;

• Annual average residential fuel oil price of $11.33 per gallon;

• Annual average residential price of propane or LPG as a primary home energy source of

$6.88 per gallon; or

• Total annual average residential energy cost on a Btu basis of $67.46 per million Btu.

(d) 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

11 | P a g e 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 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 2025 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 2025 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.

(e) 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.

(f) 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. Eligible project criteria are located at 7 CFR 1709.109. Additional information and examples of eligible project activities are contained in the 2025 Application Guide.

3.2 Cost Sharing or 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 https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XVII/part-1709/subpart-B/section-1709.109

12 | P a g e 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, 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.

3.3 Other

(a) Substantially Underserved Trust Area (SUTA) Applicants. An eligible SUTA community is located on trust lands as defined at 7 CFR 1700.101. An applicant seeking consideration under provisions of 7 CFR part 1700, subpart D must submit a letter to the RUS Administrator. 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 need for HECG 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 2025 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.

(b) 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 notice.

Where the track record of an applicant (or principals of an applicant) reflects historically inadequate performance, 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 were never recovered by the Government; failure to complete a project; failure to respond to USDA’s request for information relating to a project; failure to timely report significant changes in the budget or schedule of performance;

failure to comply with audit requirements; or suspension or termination of grant funding for material failures to comply with the terms and conditions of the grant award.

4.0 APPLICATION AND SUBMISSION INFORMATION

4.1 Address to Request Application Package

The 2025 Application Guide, copies of required forms, and other information on the HECG Program are available at http://www.rd.usda.gov/programs-services/high-energy-cost-grants. The applicant may also request information from the point of contact listed in Section 7.0 Federal Award Agency Contact of this notice.

4.2 Content and Form of Application Submission

(a) Application Format. The completed application should be assembled in the order specified below 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 and all pages must be numbered. Only numbered pages will be reviewed. Project Narratives should not exceed 25 pages in length (exclusive of required forms https://www.ecfr.gov/current/title-7/section-1700.101 https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XVII/part-1700/subpart-D https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XVII/part-1700/subpart-D https://www.rd.usda.gov/about-rd/initiatives/substantially-underserved-trust-area-suta https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XVII/part-1700/subpart-D http://www.rd.usda.gov/programs-services/high-energy-cost-grants

13 | P a g e and Project Summary) with not more than 10 pages of attachments.

(b) Application Requirements. Applications must contain all of the required elements outlined in 7 CFR 1709.117 and this notice. The 2025 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. The Application Checklist above lists the required content and form of a complete application. Applicants may use this section and the provided checklist to assure that their applications are complete and assembled in order. Narrative sections should be formatted as indicated above and assembled in the sequence specified.

(1) 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 Unique Entity Identifier (UEI) number on the SF-424 to be considered complete. See Section 4.3 below for information on obtaining a UEI number. Copies of this form are available through www.grants.gov, or by request from the Agency point of contact listed in Section 7.0 Federal Award Agency Contact of this notice.

(2) Application Part B - Project Abstract 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 as outlined in 7 CFR 1709.109 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:

(i) 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 Section 3.1(a) of this notice and must also state that the applicant has an active and unexpired registration with

(ii) 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 2020 Census. Also required is the name and population of the local government division (e.g., city, town, Federally recognized Tribe, or county for unincorporated areas) where the project is located. The Part B Summary must specifically identify the average https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XVII/part-1709/subpart-B/section-1709.117 https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XVII/part-1709/subpart-B/section-1709.117 https://www.grants.gov/ https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XVII/part-1709/subpart-B/section-1709.109 https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XVII/part-1709/subpart-B/section-1709.106

14 | P a g e 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.

(iii) 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.

(iv) 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.

(v) 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.

(3) 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 2 found in Section 5.1 of this notice. 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 Section 4.2(a) of this notice for Part C of the Application. The narrative proposal should not exceed 25 pages, exclusive of required forms. 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 sections assembled in the order indicated.

(i) Table of Contents (TOC). Part C of the application package must include a TOC immediately before the Executive Summary. The TOC must provide page numbers for all sections, forms, and supplemental materials. The TOC will help reviewers assure that all submitted materials are included in the application package and in correct, intended order. This section will not be scored or counted against proscribed page limits.

(ii) Executive Summary. The Executive Summary is a one-page introduction to the project that briefly identifies the applicant, project title, amount of grant funds requested, eligible communities, the activities and facilities to be supported, and how the grant project will

15 | P a g e benefit the community and offset or reduce the community’s extremely high energy costs.

Any priority considerations requested should be listed. The Executive Summary will be used by RUS to prepare project descriptions for press releases and other announcements and should include a key contact person for the application with a telephone number, mailing address and e-mail address. The Executive Summary is a required component of the application (7 CFR 1709.117(b)(1)), but it will not be scored. The Executive Summary immediately follows the TOC.

(iii) Project Description. The narrative project description should be no longer than 25 pages in total and should be prepared using the formatting instructions above in Section 4.2(a) of this notice.

(A) Community Eligibility and Assessment of Community Needs. Identify the area to be served by the project and the community or communities within the identified area that will benefit from the project. Identify the local government division that administers each community and the community population. Identify the location of the proposed project. Show that the proposed project’s beneficiaries are communities where the average annual residential energy costs exceed one or more of the benchmark criteria for extremely high energy costs listed in Table 1 of this notice and further described in Section 3.1(c) of this notice. Local energy providers and sources of high energy cost data and estimates must be clearly identified.

Neither the applicant nor the project is required to be physically located in the extremely high energy cost community, but the funded project must serve an eligible community.

The population estimates should be based on the 2020 Census available from the U.S. Census Bureau. Additional information and exhibits supporting eligibility and community energy sources may be obtained from the U.S. Census, the Energy Information Administration, other Federal and State agencies, or private sources.

Identify and analyze the major energy challenges that the eligible community faces and how their extremely high energy costs impair their ability to meet these needs or adversely affect other aspects of community wellbeing. The applicant may, for example, describe how socioeconomic, environmental, or public policy considerations may affect the community’s ability to meet its energy needs or influence the choices that they may make.

Address any community characteristics or extraordinary conditions that reviewers should consider in weighing the need for assistance. The narrative should address any circumstances that qualify the application for one or more of the priority scoring considerations established in Section 5.0 of this notice. Priority considerations include high poverty areas, rurality, and extraordinary circumstances.

(B) Project Design, Technical Feasibility, and Responsiveness to Community Needs.

The project description narrative must describe the proposed project in detail enough to establish that it is an eligible project under program regulations at 7 CFR 1709.109, 7 CFR 1709.110, 7 CFR 1709.111, the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards at 2 CFR part 200, and this notice.

The applicant must describe the project in detail enough to support a conclusion by reviewers of the project’s eligibility and technical feasibility as https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XVII/part-1709#p-1709.117(b)(1) https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XVII/part-1709/subpart-B/section-1709.109 https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XVII/part-1709/subpart-B/section-1709.109 https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XVII/part-1709/subpart-B/section-1709.110 https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XVII/part-1709/subpart-B/section-1709.111 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200

16 | P a g e required by 7 CFR part 1709 and this notice. Proposed projects involving construction, repair, replacement, or improvement of electric generation, transmission, and distribution facilities must generally be consistent with the standards and requirements for projects financed with loans and loan guarantees under the RE Act as set forth in RUS’s Electric Program Regulations and Bulletins and may reference these requirements.

The applicant’s proposed scope of work must include major tasks to be performed, any services to be provided directly to beneficiaries, a proposed timeline for completing each task, and an estimate of the overall project duration.

In describing the project plan and schedule, applicants must specifically identify any regulatory and other approvals required by Federal, State, local, or Tribal agencies, or by private entities (as a condition of financing), that are necessary to carry out the proposed grant project. Failure to list required permits and approvals and an estimated schedule may lead to the conclusion by the reviewers that the project proponent does not have expertise enough to develop the project. The applicant must provide an estimated schedule for obtaining the necessary approvals.

It is essential that the applicant describe and quantify how the proposed grant project is responsive to the community challenges or needs described in the preceding section of the application.

(C) Applicant Organization and Eligibility. In this section the applicant must describe its organizational structure and capacity to carry out the project. The applicant must establish that it is an eligible applicant under this program as provided in Section 3.1 in this notice. Additionally, the applicant must confirm that it and the project are in the United States, its territories, or an eligible insular area.

This section of the application is expected to include a description of the applicant entity’s ownership, as applicable, when it was established, where it operates, its sources of funding, whether it is regulated, and in addressing the organizational structure, identify all subsidiaries, affiliates, or parent entities.

Describe the financial management system that will be used for grant activities.

Provide evidence that the applicant has or will have the legal authority to enter into a grant agreement with RUS. Examples of supporting evidence of applicant’s legal existence and eligibility include: a reference to or copy of the relevant statute, regulation, executive order, or legal opinion authorizing a State, local, or Tribal government program, articles of incorporation or certificates of incorporation or good standing for corporate applicants, partnership or trust agreements, and board resolutions. (These documents will not be counted towards any page limitation and should be included at the end of the Application Package with Supplementary Materials.)

(D) Organizational Capabilities and Project Management Plan. Provide a narrative describing the applicant’s plan for implementing the proposed project.

Describe the organization’s organizational structure, method of funding and the expertise on the payroll that is relevant to the project. Describe by whom and how the project will be managed during construction and all phases of operation. The availability of financial statements and other supporting documentation about applicant financial and legal capacity to carry out the project should be referenced

17 | P a g e here. Identify key staff that will be responsible for managing the grant project and indicate whether outside consultants or contractors will be used and for what purposes. Describe the capabilities of outside consultants or contractors that will have a primary role in executing the grant project.

If the applicant proposes to use equipment or design, construction or other services from non-affiliated entities, the application must describe how it plans to contract for such equipment or services. The financial assistance regulations at 2 CFR part 200 require that procurements will be competitively bid except in accordance with 2 CFR 200.320(c). If the applicant does not intend to competitively bid for project management and/or equipment, but rather utilize the services of a pre-selected entity or item of equipment for implementing the project, the application must make express a request for this and justify the request to not compete. As part of the due diligence conducted between the time of identifying a selected finalist and making an award, the Agency may require a modification to the planned procurement process. Absent any required modification, the Agency’s action in making an award shall constitute the necessary authorization contemplated by 2 CFR 200.320(c)(4).

The application must include a representation that all procurements will comply with the Build America, Buy America Act (BABAA) and the Buy American requirements found in 7 CFR part 1787 which are outlined below in Section 8.0.

Describe the identities, relationship, qualifications, and experience of these affiliated and contracted entities. The experience and capabilities of these affiliated and/or contracted entities will be reviewed by the rating panel. Indicate whether a force account method to deliver the project is planned, an owner furnished materials + contractor method, or another arrangement for accomplishing the project is planned.

Applicants are encouraged to review the financial management requirements for Federal grantees in 7 CFR part 1709 and government-wide financial assistance regulations at 2 CFR part 200, and to address their ability to comply with these requirements in their applications.

Overall, this section should provide information that will support a finding that the overall combination of management experience, financial management capabilities, resources and project structure will enable successful completion of the project.

(E) Organizational Experience. This subsection should include a detailed description of the applicant’s relevant prior experience and that of any other organization that will carry out the proposed project. Information should be included on past projects, success rates, long-term results, and community and individual consumer benefits. If the applicant has received any prior HECGs or other Federal funding, a detailed description of these awards and past performance is required in this section.

(F) Key Staff Experience. Key managers and staff for the project are to be identified in the application component that addresses the implementation plan (above). In this section, provide more detail on their qualifications and experience relating to the work they are intended to perform for the project.