Assistance to High Energy Cost Communities

The purpose of this grant program is to assure access to adequate and reliable energy services for persons in extremely high energy cost communities by providing financial assistance to acquire, construct, extend, upgrade, and otherwise improve energ

Eligible communities under this program are those where the average home energy costs exceed 275 percent of the national average under one or more high energy cost benchmarks established by RUS based on the latest available residential energy information from the Energy Information Administration (EIA) of the United States Department of Energy.

Eligible applicants include States, political subdivisions of States, for-profit and non-profit businesses, cooperatives, associations, organizations, and other entities organized under the laws of States, Indian tribes, tribal entities, and individuals. The governments and entities located in any U.S. Territory/possession or other area authorized by law to receive the services and programs of the Rural Utilities Service or the Rural Electrification Act of 1936, as amended, are also eligible.

Projects must serve rural communities in which the annual average residential expenditure for home energy is at least 275 percent of the national average. Energy cost eligibility benchmarks are included in the published Notice of Funding Availability.

Funds must be used to acquire, construct, extend, upgrade, and improve energy generation, transmission, or distribution facilities serving communities in which the average annual expenditure for home energy costs is at least 275 percent of the national average. Energy efficiency and on-grid and off-grid renewable energy systems are eligible. Not more than 4 percent of amounts made available in grant funds may be used for planning and administrative expenses. Funds may not be used to pay utility bills, fuel costs, or operating expenses.

Funding may be used for long-lived infrastructure investments.

Grant agreements will typically run for three years; extensions for good cause shown may be granted at the sole discretion of the RUS.

Grant applications are typically ranked competitively but the Agency has the ability to make non competitive awards that meet with approved exceptions to competition found at 2 CFR 415.1(d). If competitive, applications will be ranked based on published evaluation criteria. All projects must serve communities with extremely high energy costs.

The authority to make awards is reserved to the Administrator of the USDA Rural Utilities Service.

Typically from 120 to 180 days. Selection of grant finalists will be announced approximately 90 to 180 days after the application deadline. Final Grant awards will be approved after completion of environmental review and other pre-obligation requirements.

Renewals or extensions may be requested by letter with supporting justification. Approval is not guaranteed.

Applicants may submit a request for reconsideration to the Administrator of the Rural Utilities Service when a determination is made that the application is ineligible. An appeal based on eligibility must follow procedures in 7 CFR Part 1709. Applicants may not appeal the numerical ranking determinations of competitive grant applications.