Assistance to High Energy Cost-Rural Communities (10.859)

 

Program

10.859 Assistance to High Energy Cost-Rural Communities

 

Federal Agency

Agency: Department of Agriculture
Office: Rural Development

 

Authorization

Rural Electrification Act of 1936, as amended, Title I, Section 19, Public Law 106-472, 114 Stat. 2058, 7 U.S.C. 918a.

 

Program Number

10.859

 

Last Known Status

Active

 

Objectives

Assistance to rural communities with extremely high energy costs.

 

Types of Assistance

DIRECT LOANS; PROJECT GRANTS

 

Uses and Use Restrictions

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.

 

Eligibility Requirements

Applicant Eligibility

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.

Beneficiary Eligibility

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.

Credentials/Documentation

No Credentials or documentation are required. This program is excluded from coverage under OMB Circular No. A-87.

 

Application and Award Process

Preapplication Coordination

Preapplication coordination is required. An environmental impact statement is required for this program. An environmental impact assessment is required for this program. This program is excluded from coverage under E.O. 12372.

Application Procedure

This program is excluded from coverage under OMB Circular No. A-102. This program is excluded from coverage under OMB Circular No. A-110. Grant applications are accepted in response to a Notice of Funding Availability published in the Federal Register and Grants.gov. Application requirements are described in the published notice and on the agency web site. Application materials may also be requested from the Agency.

Award Procedure

Grants will be awarded based on competitive ranking of applications according to published evaluation criteria for technical merit, community need, economic hardship, and rurality.

Deadlines

Contact the headquarters or regional office, as appropriate, for application deadlines.

Range of Approval/Disapproval Time

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-award requirements.

Appeals

Applicants may appeal rejections of ineligible applications to the Administrator of the Rural Utilities Service under procedures in program regulations at 7 CFR Part 1709. Applicants may not appeal numerical rankings of competitive grant applications.

Renewals

Not Applicable.

 

Assistance Considerations

Formula and Matching Requirements

Statutory formulas are not applicable to this program.

Matching requirements are not applicable to this program.

MOE requirements are not applicable to this program.

Length and Time Phasing of Assistance

Grant agreements will run for the period of time necessary to complete the project and provide at least one year of operating data, generally about three years. Extensions may be granted. See the following for information on how assistance is awarded/released: Advances and reimbursements will be disbursed over the term of the grant on request of the grantee.

 

Post Assistance Requirements

Reports

Grant recipients will be required to file periodic financial and performance reports specified in the grant agreement and program regulations. Cash reports are not applicable. Progress reports are not applicable. Expenditure reports are not applicable. Performance monitoring is not applicable.

Audits

In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133. Recipient will be required to report in accordance with the provisions of OMB Circular A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations," as applicable, and as provided in the grant agreement and program regulations.

Records

Grantee must maintain records in accordance with requirements of programregulations and the grant agreement.

 

Program Accomplishments

Fiscal Year 2008: In FY 2008 76 eligible applications were submitted and 9 projects were selected. Fiscal Year 2009: No Current Data Available Fiscal Year 2010: No Current Data Available

 

Financial Information

Account Identification

12-0400-0-1-452.

Obligations

(Project Grants) FY 08 $4,687,415; FY 09 est $18,000,000; FY 10 est $0

Range and Average of Financial Assistance

Minimum award is $75,000 and maximum is $5,000,000. Individual grant awards have ranged from approximately $175,000 to $3.775,000.

 

Regulations, Guidelines and Literature

7 CFR Part 1709.

 

Related Programs

10.850 Rural Electrification Loans and Loan Guarantees; 10.854 Rural Economic Development Loans and Grants

 

Information Contacts

Regional or Local Office

None.

Headquarters Office

Assistant Administrator Department of Agriculture, Washington, District of Columbia 20250 Phone: (202) 720-9545. Use the same num

Web Site Address

http://www.usda.gov/rus/electric/hecgp/index.htm

 

Examples of Funded Projects

Fiscal Year 2008: A total of 57 grant projects are currently active and include electric generation, transmission, and distribution upgrades and replacements, energy efficiency improvements, and on-grid and off-grid renewable energy systems. The projects benefit local consumers by preserving reliable service and reducing or limiting rate increases. Fiscal Year 2009: No Current Data Available Fiscal Year 2010: No Current Data Available

 

Criteria for Selecting Proposals

Grant applications will be ranked competitively based on published evaluation criteria. All projects must serve rural communities with extremely high energy costs.