Announcement of Grant Application Deadlines and Funding Levels for the Assistance to High Energy Cost Rural Communities, 47756-47769 [2010-19509]

Agencies

• DEPARTMENT OF AGRICULTURE
• Rural Utilities Service

[Federal Register Volume 75, Number 152 (Monday, August 9, 2010)]
[Notices]
[Pages 47756-47769]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-19509]


-----------------------------------------------------------------------

DEPARTMENT OF AGRICULTURE

Rural Utilities Service


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

AGENCY: Rural Utilities Service, USDA.

ACTION: Notice of funding availability (NOFA).

-----------------------------------------------------------------------

SUMMARY: The Rural Utilities Service (RUS), an agency of the United 
States Department of Agriculture (USDA), announces the availability of 
$15.5 million in Fiscal Year 2010 for competitive grants to assist 
communities with extremely high energy costs. This grant program is 
authorized under section 19 of the Rural Electrification Act of 1936 
(RE Act) (7 U.S.C. 918a) and program regulations at 7 CFR Part 1709. 
The grant funds may be used to acquire, construct, extend, upgrade, or 
otherwise improve energy generation, transmission, or distribution 
facilities serving communities in which the average residential 
expenditure for home energy exceeds 275 percent of the national 
average. Eligible applicants include persons, States, political 
subdivisions of States, and other entities organized under State law. 
Federally-recognized Indian Tribes and Tribal entities are eligible 
applicants. This notice describes the eligibility and application 
requirements, the criteria that will be used by the Agency to award 
funding, and information on how to obtain application materials. The 
Catalog of Federal Domestic Assistance (CFDA) Number for this program 
is 10.859. You may obtain the Application Guide and materials for the 
Assistance to High Energy Cost Rural Communities Grant Program via the 
Internet at the following Web site: https://www.usda.gov/rus/electric/hecgp/index.htm. You may also request the Application Guide and 
materials from RUS by contacting the individual listed

[[Page 47757]]

in the FOR FURTHER INFORMATION CONTACT section of this notice.

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 September 8, 2010, or hand delivered 
to RUS by this deadline, to be eligible under this NOFA. Late or 
incomplete applications will not be eligible for FY 2010 grant funding.
     Electronic applications must be submitted through 
Grants.gov no later than September 8, 2010 to be eligible under this 
NOFA for FY 2010 grant funding. Late or incomplete electronic 
applications will not be eligible. Applications will not be accepted by 
electronic mail. Applications will be accepted on publication of this 
notice.

ADDRESSES: You may submit completed applications for grants on paper or 
electronically to the following addresses:
     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 (https://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 pre-registration.

Application Guides and materials may be obtained electronically 
through: https://www.usda.gov/rus/electric/hecgp/index.htm. Call the RUS 
Electric Programs at (202) 720-9545 to request paper copies of 
Application Guides and other materials.

FOR FURTHER INFORMATION CONTACT: Karen Larsen, Management Analyst, 
Rural Utilities Service, Electric Programs, United States Department of 
Agriculture, 1400 Independence Avenue, SW., STOP 1560, Room 5165 South 
Building, Washington, DC 20250-1560. Telephone 202-720-9545, Fax 202-
690-0717, e-mail energy.grants@wdc.usda.gov.

SUPPLEMENTARY INFORMATION:

Overview Information

    Federal Agency Name: United States Department of Agriculture, Rural 
Utilities Service, Assistant Administrator, Electric Programs.
    Funding Opportunity Title: Assistance to High Energy Cost Rural 
Communities.
    Announcement Type: Initial announcement.
    Funding Opportunity Number: RD-RUS-HECG10.
    Catalog of Federal Domestic Assistance (CFDA) Number: 10.859. The 
CFDA title for this program is ``Assistance to High Energy Cost Rural 
Communities.''
    Dates: Applications must be postmarked and mailed or shipped, or 
hand delivered to the RUS, or filed with Grants.gov by September 8, 
2010.

I. Funding Opportunity Description

    The Rural Utilities Service (RUS) is making available $15.5 million 
in competitive grants under section 19 of the Rural Electrification Act 
of 1936 (the ``RE Act'') (7 U.S.C. 918a). Under section 19, the RUS 
Administrator is authorized to make grants to ``acquire, construct, 
extend, upgrade, and otherwise improve energy generation, transmission, 
or distribution facilities'' serving extremely high energy cost 
communities. Eligible communities are those in which the average 
residential expenditure for home energy is at least 275 percent of the 
national average residential expenditure for home energy under one or 
more of the benchmarks published in this notice. Program regulations 
are codified at 7 CFR part 1709.
    The purpose of this grant program is provide financial assistance 
for a broad range of energy facilities, equipment and related 
activities to offset the impacts of extremely high residential energy 
costs on eligible communities. Grant funds may be used to purchase, 
construct, extend, repair, upgrade and otherwise improve energy 
generation, transmission, or distribution facilities serving eligible 
communities. Eligible facilities include on-grid and off-grid renewable 
energy systems and implementation of cost-effective demand side 
management and energy conservation programs that benefit eligible 
communities. Grant funds may not be used to pay utility bills or to 
purchase fuel. Grant projects under this program must provide community 
benefits and not be for the sole benefit of an individual applicant, 
household, or business.
    Eligible applicants include for-profit and non-profit businesses, 
cooperatives, and associations, States, political subdivisions of 
States, and other entities organized under the laws of States, Indian 
Tribes, Tribal entities, and individuals. Eligible applicants also 
include entities located in U.S. Territories and other areas authorized 
by law to participate in the Agency's programs or programs under the RE 
Act.
    No cost sharing or matching funds are required as a condition of 
eligibility under this grant program. However, the RUS will consider 
other financial resources available to the applicant and any voluntary 
commitment of matching funds or other contributions in assessing the 
applicant's capacity to carry out the grant program successfully. The 
RUS will award additional evaluation points to any proposals that 
include such contributions.
    As a further condition of each grant, section 19(b)(2) of the RE 
Act requires that planning and administrative expenses of the grantee 
not directly related to the project may not exceed 4 percent of the 
grant funds.
    This NOFA provides an overview of the grant program, and the 
eligibility and application requirements, and selection criteria for 
grant proposals. This NOFA includes changes to eligibility benchmarks 
and to scoring criteria. Applicants are encouraged to review the notice 
carefully. RUS is also making available an Application Guide with more 
detailed information on application requirements and copies of all 
required forms and certifications. The Application Guide is available 
on the Internet from the Agency Web site at: https://www.usda.gov/rus/electric/hecgp/index.htm. The Application Guide may also be requested 
from the contact listed in the FOR FURTHER INFORMATION CONTACT section 
of this notice. For additional information, applicants should consult 
the program regulations at 7 CFR part 1709.

Definitions

    Consult the program regulations at 7 CFR part 1709 and the 
Application Guide for additional definitions used in this program. As 
used in this NOFA:
    Agency means the Rural Utilities Service (RUS) of the United States 
Department of Agriculture.
    Application Guide means the Application Guide prepared by the 
Agency for the High Energy Cost Grant program containing detailed 
instructions for determining eligibility and preparing grant 
applications, and copies of required forms, questionnaires, and model 
certifications.
    Extremely high energy costs means community average residential 
energy costs that meet or exceed one or more home energy cost 
benchmarks

[[Page 47758]]

established by the Administrator at 275 percent of the national average 
residential energy expenditures as reported by the Energy Information 
Administration (EIA) of the United States Department of Energy.
    Home energy means any energy source or fuel used by a household for 
purposes other than transportation, including electricity, natural gas, 
fuel oil, kerosene, liquefied petroleum gas (propane), other petroleum 
products, wood and other biomass fuels, coal, wind, and solar energy. 
Fuels used for subsistence activities in remote rural areas are also 
included.
    High energy cost benchmarks means the criteria established by the 
Administrator for eligibility as an extremely high energy cost 
community. 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.
    Indian Tribe 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.''
    Person means any natural person, firm, corporation, association, or 
other legal entity, and includes Indian Tribes and Tribal entities.
    Primary home energy source means the energy source that is used for 
space heating or cooling, water heating, cooking, and lighting. A 
household or community may have more than one primary home energy 
source.
    State rural development initiative means a rural economic 
development program funded by or carried out in cooperation with a 
State agency or Indian Tribe.
    Target area means the geographic area to be served by the grant.
    Target community means the unit or units of local government in 
which the target area is located.
    Tribal entity means a legal entity that is owned, controlled, 
sanctioned, or chartered by the recognized governing body of an Indian 
Tribe.

II. Award Information

    The total amount of funds available for grants in Fiscal Year 2010 
under this notice is $15.5 million. The maximum amount of grant 
assistance that will be considered for funding in a grant application 
under this notice is $5,000,000. The minimum amount of assistance for a 
grant application under this program is $75,000. The number of grants 
awarded under this NOFA will depend on the number of applications 
submitted, the amount of grant funds requested, the quality and 
competitiveness of applications submitted, and the availability of 
funds.
    The funding instrument available under this NOFA will be a grant 
agreement. Grants awarded under this notice must comply with all 
applicable USDA and Federal regulations concerning financial 
assistance, with the terms of this notice, and with the requirements of 
section 19 of the RE Act. Grants made under this NOFA will be 
administered under the Agency program regulations at 7 CFR part 1709 
and USDA financial assistance regulations at 7 CFR parts 3015, 3016, 
3017, 3018, 3019, and 3052, as applicable. The award period will 
generally be for 36 months, however, longer periods may be approved 
depending on the project involved. Grantees may request project 
extensions.
    A new applicant must provide a narrative grant proposal prepared 
according to the instructions in this NOFA along with all required 
forms and information in order to submit a complete application.
    Any prior applicant that submitted a project proposal in response 
to the NOFA published on January 28, 2008 (73 FR 4,778) may request 
reconsideration of the earlier application if the applicant was 
notified in writing by the RUS that the application was accepted as 
complete and timely, but was not selected for funding. The RUS has 
retained these original applications. These 2008 eligible applicants 
may submit additional information for consideration of their 2008 
applications as described later in this notice. Applicants under the 
2008 NOFA that were rejected as incomplete or ineligible may submit new 
or revised applications that meet the requirements of this NOFA.
    All timely submitted and complete applications will be reviewed for 
eligibility and rated according to the criteria described in this NOFA. 
Applications will be ranked in order of their numerical scores on the 
rating criteria and forwarded to the RUS Administrator. The 
Administrator will review the rankings and the recommendations of the 
rating panel. The Administrator will then fund grant applications in 
rank order. The Agency reserves the right in its sole discretion to 
make additional awards to applications submitted under this 
announcement through reprogramming available program funds.
    The RUS reserves the right not to award any or all the funds made 
available under this notice, if in the sole opinion of the 
Administrator, the grant proposals submitted are not deemed feasible 
under program requirements. The RUS also reserves the right to 
partially fund grants if grant applications exceed the available funds. 
The RUS will advise applicants if it cannot fully fund a grant request.

III. Eligibility Information

1. Eligible Applicants

    Under Section 19 eligible applicants include ``Persons, States, 
political subdivisions of States, and other entities organized under 
the laws of States'' (7 U.S.C. 918a). Under section 13 of the RE Act, 
the term ``Person'' means ``any natural person, firm, corporation, or 
association'' (7 U.S.C. 913). Examples of eligible business applicants 
include: for-profit and non-profit business entities, including but not 
limited to corporations, associations, partnerships, limited liability 
partnerships (LLPs), cooperatives, trusts, and sole proprietorships. 
Eligible government applicants include State and local governments, 
counties, cities, towns, boroughs, or other agencies or units of State 
or local governments; and other agencies and instrumentalities of 
States and local governments. Indian Tribes, other Tribal entities and 
Alaska Native Corporations are also eligible applicants.
    An individual is an eligible applicant under this program; however, 
the proposed grant project must provide community benefits and not be 
for the sole benefit of an individual applicant or an individual 
household or business.
    All applicants must demonstrate the legal capacity to enter into 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.
    The Office of Management and Budget requires that all applicants 
for Federal grants with the exception of individuals other than sole 
proprietorships must provide a Dun and Bradstreet (D&B) Data Universal 
Numbering System (DUNS) number with their applications. Consistent with 
this Federal policy

[[Page 47759]]

directive, any organization or sole proprietorship that applies for a 
high energy cost grant must use its DUNS number on the application and 
in the field provided on the revised Standard Form 424 (SF 424) 
``Application for Federal Assistance'' to be eligible to apply. DUNS 
numbers are available for free to Federal Grant applicants on line at 
https://fedgov.dnb.com/webform or may be obtained through a short phone 
call to D&B. Please see the ``Get Registered'' section on Grants.gov 
for more information on how to obtain a DUNS number or how to verify if 
your organization already has a DUNS number. If you already have 
obtained a DUNS number in connection with the Federal acquisition 
process or requested or had one assigned to you for another purpose, 
you should use that number on all of your applications. It is not 
necessary to request another DUNS number from D&B.

2. Cost Sharing and Matching

    No cost sharing or matching funds are required as a condition of 
eligibility under this grant program. However, the 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 capacity to carry out the grant program 
successfully and will award additional evaluation points to proposals 
that include such contributions. If a successful applicant proposes to 
use matching funds or other cost contributions in its project to obtain 
additional evaluation points, the grant agreement will include 
conditions requiring documentation of the availability of the matching 
funds and actual expenditure of matching funds or cost contributions. 
The Agency may require the applicant to provide additional 
documentation confirming the availability of any matching contribution 
offered prior to approval of project selection. If an applicant fails 
to provide timely documentation of the availability of matching 
contributions, the RUS may, in its sole discretion, disallow any points 
awarded for matching contributions and rescore the project, or decline 
to award the project if uncertainties over availability of the match 
render the project financially infeasible; and/or impose additional 
conditions.

3. Other Eligibility Requirements

A. Eligible Projects
    Grantees must use grant funds for eligible grant purposes. 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. Grant funds may not be used to pay utility bills 
or to purchase fuels.
    Grants may cover up to the full costs of any eligible projects 
subject to the statutory condition that no more than 4 percent of grant 
funds may be used for the planning and administrative expenses of the 
grantee. The program regulations at 7 CFR part 1709 provide more detail 
on allowable uses of grant funds, limitations on grant funds, and 
ineligible grant purposes.
    The project must serve communities that meet the extremely high 
energy cost eligibility requirements described in this NOFA. 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.
    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. In 
general, grant funds may not be used to support projects that primarily 
benefit areas outside of eligible target communities. However, grant 
funds may be used to finance an eligible target community's 
proportionate share of a larger energy project.
    Each grant applicant must demonstrate the economic and technical 
feasibility of its proposed project. Activities or equipment that would 
commonly be considered as research and development activities, or 
commercial demonstration projects for new energy technologies will not 
be considered as technologically feasible projects and would, thus, be 
ineligible grant purposes. However, grant funds may be used for 
projects that involve the innovative use or adaptation of energy-
related technologies that have been commercially proven.
B. Eligible Communities
    The grant project must benefit communities with extremely high 
energy costs. The RE Act defines an extremely high energy cost 
community as one in which ``the average residential expenditure for 
home energy is at least 275 percent of the national average residential 
expenditure for home energy'' 7 U.S.C. 918a. The benchmarks are set 
based on the latest available information from the Energy Information 
Administration (EIA) residential energy surveys.
    The statutory requirement that community residential expenditures 
for home energy exceed 275 percent of national average establishes a 
very high threshold for eligibility under this program. The Agency has 
calculated high energy cost benchmarks based on the most recent EIA 
national average home energy expenditure data. The current benchmarks 
are shown in Table 1. These benchmarks have been revised since 
publication of the 2008 NOFA. New applicants must demonstrate that 
proposed target communities must meet one or more high energy cost 
benchmarks to qualify as an eligible beneficiary of a grant under this 
program. All applications submitted after publication of this 
announcement must meet these current eligibility benchmarks. Eligible 
applications submitted under the January 28, 2008 and requesting 
reconsideration will retain eligibility established under the prior 
benchmarks. Based on available published information on residential 
energy costs, the Agency anticipates that only those communities with 
the highest energy costs across the country will qualify under this 
congressionally-mandated standard.
    The EIA's Residential Energy Consumption and Expenditure Surveys 
(RECS) and reports provide the baseline national average household 
energy costs 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 2009. These estimates of home energy usage and expenditures 
are based on national surveys conducted in 2005 survey data and are 
shown in Table 1 as follows:

[[Page 47760]]



   Table 1--National Average Annual Household Energy Expenditures and
     Extremely High Energy Cost Eligibility Benchmarks Effective for
            Applications Submitted on or after August 9, 2010
------------------------------------------------------------------------
                                         EIA 2005
                                      national annual    RUS extremely
                                          average       high energy cost
                Fuel                     household     benchmark 275% of
                                      expenditure  $    national average
                                         per year          $ per year
------------------------------------------------------------------------
                  Average Annual Household Expenditure
------------------------------------------------------------------------
Electricity........................            $1,123         $3,010
Natural Gas........................               754          1,988
Fuel Oil...........................             1,518          3,921
LPG/Propane........................               875          2,256
Total Household Energy Use.........             1,810          4,860
------------------------------------------------------------------------


 
                                                         RUS extremely
                                         EIA 2005       high energy cost
            Fuel (units)             national average  benchmark 275% of
                                      unit cost $ per  national  average
                                           unit            $ per unit
------------------------------------------------------------------------
            Annual Average per Unit Residential Energy Costs
------------------------------------------------------------------------
Electricity (kilowatt hours).......             $0.10             $0.264
Natural Gas (thousand cubic feet)..             11.24             30.30
Fuel Oil (gallons).................              2.04              5.54
LPG/Propane (gallons)..............              1.92              5.10
Total Household Energy (million                 19.07             51.62
 Btus).............................
------------------------------------------------------------------------
Sources: Energy Information Administration, United States Department of
  Energy, 2005 Residential Energy Consumption Survey--Detailed Tables,
  available at: https://www.eia.doe.gov/emeu/recs/recs2005/c&e/detailed_tables2005c&e.html. The RUS benchmarks calculations include
  adjustments to reflect the uncertainties inherent in EIA's statistical
  methodology for estimating home energy costs. The benchmarks are set
  based on the EIA's lower range estimates using the specified EIA
  methods.

    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. The 
relative impacts of these conditions exhibit regional and seasonal 
diversity. Market factors have created an additional complication in 
recent years as the prices of the major commercial residential energy 
sources--electricity, fuel oil, natural gas, and LPG/propane--have 
fluctuated dramatically in some areas.
    The applicant must demonstrate that each community in the grant 
project's proposed target area exceeds one or more of these high energy 
cost benchmarks to be eligible for assistance under this program.
i. High Energy Cost Benchmarks
    The benchmarks measure extremely high energy costs for residential 
consumers. These benchmarks were calculated using EIA's estimates of 
national average residential energy expenditures per household and by 
primary home energy source. The benchmarks recognize the diverse 
factors that contribute to extremely high home energy costs in rural 
communities. The benchmarks allow extremely high energy cost 
communities several alternatives for demonstrating eligibility. 
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. By providing 
alternative measures for demonstrating eligibility, the benchmarks 
reduce the burden on potential applicants created by the limited public 
availability of comprehensive data on local community energy 
consumption and expenditures.
    A target community or target area will qualify as an extremely high 
cost energy community if it meets one or more of the energy cost 
eligibility benchmarks described below.
    a. Extremely High Average Annual Household Expenditure for Home 
Energy. The target area or community exceeds one or more of the 
following:
     Average annual residential electricity expenditure of 
$3,010 per household;
     Average annual residential natural gas expenditure of 
$1,988 per household;
     Average annual residential expenditure on fuel oil of 
$3,921 per household;
     Average annual residential expenditure on propane or 
liquefied petroleum gas (LPG) as a primary home energy source of $2,256 
per household; or
     Average annual residential energy expenditure (for all 
non-transportation uses) of $4,860 per household.
    b. Extremely High Average per unit energy costs. The average 
residential per unit cost for major commercial energy sources in the 
target area or community exceeds one or more of the following:
     Annual average revenues per kilowatt hour for residential 
electricity customers of $0.264 per kilowatt hour (kWh);
     Annual average residential natural gas price of $30.30 per 
thousand cubic feet;
     Annual average residential fuel oil price of $5.54 per 
gallon;
     Annual average residential price of propane or LPG as a 
primary home energy source of $5.10 per gallon; or
     Total annual average residential energy cost on a Btu 
basis of $51.62 per million Btu.\1\
---------------------------------------------------------------------------

    \1\ 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. In estimating average household per 
unit energy cost on a Btu basis, the costs of different home energy 
sources are converted to a standard Btu basis. The Application Guide 
contains additional information on calculating per unit costs on a 
Btu basis for major home energy sources.

---------------------------------------------------------------------------

[[Page 47761]]

ii. Supporting Energy Cost Data
    The applicant must include information that demonstrates its 
eligibility under the Agency's high energy cost benchmarks for the 
target communities and the target areas. The applicant must supply 
documentation or references for its sources for actual or estimated 
home energy expenditures or equivalent measures to support eligibility. 
Generally, the applicant will be expected to use historical residential 
energy cost or expenditure information for the local energy provider 
serving the target community or target 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 Application Guide includes a list of EIA resources on 
residential energy consumption and costs that may be of assistance.
    The grant applicant must establish eligibility for each community 
in the project's target area. To determine eligibility, the applicant 
must identify each community included in whole or in part within the 
target areas and provide supporting actual or estimated energy 
expenditure data for each community. The smallest area that may be 
designated as a target area is a 2000 Census block. This minimum size 
is necessary to enable a determination of population size.
    Potential applicants can compare the benchmark criteria to 
available information about local energy use and costs to determine 
their eligibility. Applicants should demonstrate their eligibility 
using historical energy use and cost information. Where such 
information is unavailable or does not adequately reflect the actual 
costs of supporting average home energy use in a local community, the 
Agency will consider estimated commercial energy costs. The Application 
Guide includes examples of circumstances where estimated energy costs 
are used.
    EIA does not collect or maintain data on home energy expenditures 
in sufficient detail to identify specific rural localities as extremely 
high energy cost communities. Therefore, grant applicants will have to 
provide information on local community energy costs from other sources 
to support their applications.
    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.
iii. Use of Estimated Home Energy Costs
    Where historical community energy cost data are incomplete or 
lacking or where community-wide data do not accurately reflect the 
costs of providing home energy services in the target 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 target 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 target area is without local electric service 
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 costs of providing a necessary upgrade 
or replacement of energy infrastructure to maintain or extend service 
that would raise costs above one or more of benchmarks.
    Information to support high energy cost eligibility is subject to 
independent review by the Agency. Applications that contain information 
that is not reasonably based on credible sources of information and 
sound estimates will be rejected. Where appropriate, the Agency may 
consult standard sources to confirm the reasonableness of information 
and estimates provided by applicants in determining eligibility, 
technical feasibility, and adequacy of proposed budget estimates.
C. Coordination With State Rural Development Initiatives
    USDA encourages the coordination of grant projects under this 
program with State development initiatives. There is no requirement 
that the grant proposal receive the concurrence or approval of State 
officials as a condition of eligibility under this program. The Agency 
will, however, award additional points to proposals that are 
coordinated with and support rural development initiatives within a 
State. The applicant should describe how the proposed project will 
support State rural development initiatives and provide documentation 
evidencing any project relationship to State initiatives.
    If an applicant is an entity directly involved in rural development 
efforts, such as a State, local, or Tribal rural development agency, 
the applicant may qualify for additional points by describing how its 
proposed project supports its efforts.
D. Limitations on Grant Awards
a. Statutory Limitation on Planning and Administrative Expenses
    Section 19 of the RE Act provides that no more than 4 percent of 
the grant funds for any project may be used for the planning and 
administrative expenses of the grantee that are not directly related to 
the grant project.
ii. Ineligible Grant Purposes
    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. In 
general, grant funds may not be used to support projects that primarily 
benefit areas outside of eligible target communities. However, grant 
funds may be used to finance an eligible target 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 combination with other USDA 
assistance programs including electric loans. Grants may be applied 
toward grantee contributions under other USDA programs depending on the 
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

[[Page 47762]]

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 or 
grant from the Agency or other sources.
iii. Maximum and Minimum Awards
    The maximum amount of grant assistance that will be considered for 
funding per grant application under this notice is $5,000,000. The 
minimum amount of assistance for a competitive grant application under 
this program is $75,000.

IV. Application and Submission Information

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

1. Address To Request an Application Package

    Applications materials and the Application Guide are available for 
download through https://www.Grants.gov (under CFDA No. 10.859) and on 
the Electric Programs Web site at: https://www.usda.gov/rus/electric/hecgp/index.htm.
    Application packages, including required forms, may be also be 
requested from: Karen Larsen, Management Analyst, United States 
Department of Agriculture, Rural Development Utilities Programs, 
Electric Program, 1400 Independence Avenue, SW., STOP 1560, Room 5165 
South Building, Washington, DC 20250-1560. Telephone 202-720-9545, Fax 
202-690-0717, e-mail energy.grants@wdc.usda.gov.

2. Content and Form of Application Submission

    There are different application requirements for first-time 
applicants and for prior applicants requesting reconsideration. First-
time applicants are those that did not submit a timely and complete 
application or request for reconsideration in response to the January 
28, 2008 (73 FR 4778) NOFA. First-time applicants should follow the 
directions in this notice and the Application Guide in preparing their 
applications and narrative proposals. The completed application package 
should be assembled in the order specified with all pages numbered 
sequentially or by section. If you submitted an application in 2003, 
2004, 2005, or 2007, but did not submit a request for reconsideration 
in 2008, you must submit a complete new application package meeting 
current eligibility and content requirements. Prior 2008 applicants 
should follow the special instructions for reconsideration of their 
applications and submit a revised Standard Form 424 (SF-424), a letter 
requesting reconsideration, and any supplemental material by the 
deadline.
A. Application Contents for New Applications
    First-time applicants must submit the following information for the 
application to be complete and considered for funding:
    i. Part A. A Completed 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: SF 424 has recently been 
revised to include new required data elements, including a DUNS number. 
You must submit the revised form. Copies of this form are available in 
the application package available on line through the Agency Web site 
or through Grants.gov, or by request from the Agency contact listed 
above.
    ii. Part B. Grant Proposal. The grant proposal is a narrative 
description prepared by the applicant that establishes the applicant's 
eligibility, identifies the eligible extremely high energy cost 
communities to be served by the grant, and describes the proposed grant 
project, the potential benefits of the project, and a proposed budget. 
The grant proposal should contain the following sections in the order 
indicated.
    1. Executive Summary. The Executive Summary is a one to two page 
narrative summary that: (a) Identifies the applicant, project title, 
and the key contact person with telephone and fax numbers, mailing 
address and e-mail address; (b) specifies the amount of grant funds 
requested; (c) provides a brief description of the proposed project 
including the eligible rural communities and residents to be served, 
activities and facilities to be financed, and how the grant project 
will offset or reduce the target community's extremely high energy 
costs; and (d) identifies the associated State rural development 
initiative, if any, that the project supports. The Executive Summary 
should also indicate whether the applicant is claiming additional 
points under any of the criteria designated as USDA priorities under 
this NOFA.
    2. Table of Contents. The application package must include a table 
of contents immediately after the Executive Summary with page numbers 
for all required sections, forms, and appendices.
    3. Applicant Eligibility. This section includes a narrative 
statement that identifies the applicant and supporting evidence 
establishing that the applicant has or will have the legal authority to 
enter into a financial assistance relationship with the Federal 
Government. 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 for corporate 
applicants, partnership or trust agreements, board resolutions. 
Applicants must also be free of any debarment or other restriction on 
their ability to contract with the Federal Government.
    4. Community Eligibility. This section provides a narrative 
description of the community or communities to be served by the grant 
and supporting information to establish eligibility. The narrative must 
show that the proposed grant project's target area or areas are located 
in one or more communities where the average residential energy costs 
exceed one or more of the benchmark criteria for extremely high energy 
costs as described in this NOFA. The narrative should clearly identify 
the location and population of the areas to be aided by the grant 
project and their energy costs and the population of the local 
government division in which they are located. Local energy providers 
and sources of high energy cost data and estimates should be clearly 
identified. Neither the applicant nor the project must 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 results of the 2000 
Census available from the U.S. Census Bureau. Additional information 
and exhibits supporting eligibility may include maps, summary tables, 
and references to statistical information from the U.S. Census, the 
Energy Information Administration, other Federal and State agencies, or 
private sources. The Application Guide includes additional information 
and sources that the applicant may find useful in establishing 
community eligibility.
    5. Coordination with State Rural Development Initiatives. In this 
section the applicant must describe how the

[[Page 47763]]

proposed grant is coordinated with and supports any rural development 
efforts. The applicant should provide supporting references or 
documentation of any relationship or contribution to State rural 
development initiatives.
    6. Project Overview. This section includes the applicant's 
narrative overview of its proposed project. The narrative must address 
the following:
    a. Project Design: This section must provide a narrative 
description of the project including a proposed scope of work 
identifying major tasks and proposed schedules for task completion, a 
detailed description of the equipment, facilities and associated 
activities to be financed with grant funds, the location of the 
eligible extremely high energy cost communities to be served, and an 
estimate of the overall duration of the project. The Project Design 
description should be sufficiently detailed to support a finding of 
technical feasibility. 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 the Agency's 
Electric Programs Regulations and Bulletins and may reference these 
requirements.
    b. Project Management: This section must provide a narrative 
describing the applicant's capabilities and project management plans. 
The description should address the applicant's organizational 
structure, method of funding, legal authority, key personnel, project 
management experience, financial management systems, staff resources, 
the goals and objectives of the program or business, and any related 
services provided to the project beneficiaries. A current financial 
statement and other supporting documentation may be referenced here and 
included under the Supplementary Material section. If the applicant 
proposes to use affiliated entities, contractors, or subcontractors to 
provide services funded under the grant, the applicant must describe 
the identities, relationship, qualifications, and experience of these 
affiliated entities. The experience and capabilities of these entities 
will be reviewed by the rating panel. If the applicant proposes to 
secure equipment, design, construction, or other services from non-
affiliated entities, the applicant must briefly describe how it plans 
to procure and/or contract for such equipment or services. The 
applicant should provide information that will support a finding that 
the combination of management team's experience, financial management 
capabilities, resources and project structure will enable successful 
completion of the project. Applicants are encouraged to review the 
financial management requirements for Federal grantees in 7 CFR part 
1709 and USDA financial assistance regulations at 7 CFR parts 3015, 
3016, 3017, 3018, 3019, and 3052, as applicable, and to address their 
ability to comply with these requirements in their applications.
    c. Regulatory and other approvals: The applicant must identify any 
other regulatory or other approvals required by other 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 
and its estimated schedule for obtaining the necessary approvals.
    d. Benefits of the proposed project. The applicant should describe 
how the proposed project would benefit the target area and eligible 
communities. The description must specifically address how the project 
will improve energy generation, transmission, or distribution 
facilities serving the target area. The applicant should clearly 
identify how the project addresses the energy needs of the community 
and include appropriate measures of project success such as, for 
example, expected reductions in household or community energy costs, 
avoided cost increases, enhanced reliability, or economic or social 
benefits from improvements in energy services available to the target 
community. The applicant should include quantitative estimates of cost 
or energy savings and other benefits. The applicant should provide 
documentation or references to support its statements about cost-
effectiveness savings and improved services. The applicant should also 
describe how it plans to measure and monitor the effectiveness of the 
program in delivering its projected benefits.
    7. Proposed Project Budget. The applicant must submit a proposed 
budget for the grant program on SF 424A, ``Budget Information--Non-
Construction Programs'' or SF-424C, ``Standard Form for Budget 
Information-Construction Programs,'' as applicable. All applicants that 
submit applications through Grants.gov must use SF-424A. The applicant 
should supplement the budget summary form with more detailed 
information describing the basis for cost estimates. The detailed 
budget estimate should itemize and explain major proposed project cost 
components such as, but not limited to, the expected costs of design 
and engineering and other professional services, personnel costs 
(salaries/wages and fringe benefits), equipment, materials, property 
acquisition, travel (if any), and other direct costs, and indirect 
costs, if any. The budget must document that planned administrative and 
other expenses of the project sponsor that are not directly related to 
performance of the grant will not total more than 4 percent of grant 
funds. The applicant must also identify the source and amount of any 
other Federal or non-Federal contributions of funds or services that 
will be used to support the proposed project. This program does not 
require supplemental or matching funds for eligibility; however, the 
Agency will award additional rating points for programs that include a 
match of other funds or like-kind contributions to support the project.
    8. Supplementary Material. The applicant may append any additional 
information relevant to the proposal or which may qualify the 
application for extra points under the evaluation criteria described in 
this NOFA.
    iii. Part C. Additional Required Forms and Certifications. In order 
to establish compliance with other Federal requirements for financial 
assistance, the applicant must execute and submit with the initial 
application the following forms and certifications:
     SF 424B, ``Assurances--Non-Construction Programs'' or SF 
424D, ``Assurances--Construction Programs'' (as applicable). All 
applicants applying through Grants.gov must use form SF 424B.
     SF LLL, ``Disclosure of Lobbying Activities.''
     ``Certification Regarding Debarment, Suspension and Other 
Responsibility Matter--Primary Covered Transactions'' as required under 
7 CFR part 3017, Appendix A. Certifications for individuals, 
corporations, nonprofit entities, Indian Tribes, partnerships.
     Environmental Profile. The Agency environmental profile 
template included in the Application Guide solicits information about 
project characteristics and site-specific conditions that may involve 
environmental, historic preservation, and other resources. The profile 
will be used by the Agency's environmental staff to identify selected 
projects that may require additional environmental reviews, 
assessments, or environmental impact statements before a final grant 
award may be approved. A copy of the environmental profile and 
instructions for completion are included in the Application Guide and 
may be downloaded from the Agency Web site or Grants.gov.

[[Page 47764]]

B. Special Requirements for Applicants Requesting Reconsideration of an 
Application Submitted in 2008
    Applicants that submitted applications in response to the NOFA 
published on January 28, 2008 (73 FR 4,778) and that later received a 
letter from the RUS with their scores and advising them that the 
application was determined to be eligible and complete, may request 
reconsideration of their 2008 applications in this round of competitive 
funding. To request reconsideration, the applicant must submit a new 
original Standard Form SF 424, including mandatory data elements (DUNS 
number, fax number, and e-mail address) along with a brief signed 
letter requesting reconsideration and identifying any additional 
information that they wish to be considered by the rating panel in 
reviewing their application along with supporting documentation. 
Community eligibility for these prior applications was determined under 
the eligibility benchmarks for the 2008 NOFA. These accepted and 
complete applications will be grandfathered under this NOFA.
    The required application package for reconsideration will consist 
of the original signed SF 424, the request for reconsideration, and any 
additional supporting documents, plus the original application package 
submitted to the RUS in 2008. The Agency has maintained these prior 
applications on file and will add the newly submitted material to the 
existing application package for review by the rating panel. You do not 
need to send a copy of the 2008 application package. Because this 
abbreviated application package differs from the general application 
package for first time applicants available through Grants.gov, 
applicants requesting reconsideration should submit their requests 
directly to the RUS by the application deadline and not through 
Grants.gov. Applicants that submitted an application in 2008 also have 
the option of submitting an entirely new complete application package 
for their project under the requirements of this NOFA.

3. Additional Information Requests

    In addition to the information required to be submitted in the 
application package, the RUS may request that successful grant 
applicants provide additional information, analyses, forms and 
certifications as a condition of pre-award clearance, including any 
environmental reviews or other reviews or certifications required under 
USDA and Government-wide assistance regulations. The RUS will advise 
the applicant in writing of any additional information required.

4. Submitting the Application

    Applicants that are submitting paper application packages must 
submit one original application package that includes original 
signatures on all required forms and certifications and two copies. 
Applications should be submitted on 8 \1/2\ by 11 inch white paper. 
Supplemental materials, such as maps, charts, plans, and photographs 
may exceed this size requirement.
    A completed paper application package must contain all required 
parts in the order indicated in the above section on ``Content and Form 
of Application Submission.'' The application package should be 
paginated either sequentially or by section. Applicants are requested 
to provide the application package in single-sided format for ease of 
copying.
    Applicants that are submitting application packages electronically 
through the Federal grants portal Grants.gov (https://www.Grants.gov) 
must follow the application requirements and procedures and submit all 
the forms in the application package provided there. The Grants.gov Web 
site contains full instructions on all required registration, 
passwords, credentialing and software required to submit applications 
electronically. Grants.gov has streamlined the registration and 
credentialing process and now requires separate application processes 
for individuals and organizations. Individual applicants, including 
individuals applying on behalf of an organization, should follow the 
special directions for individuals on the Grants.gov Web site. 
Organizational applicants and sole proprietorships should follow the 
instructions for organizations.
    Organizational applicants are advised that completion of the 
requirements for registration with Grants.gov, with the Central 
Contractor Registry, and e-Authentication required under Grants.gov may 
take a week or more and may be delayed. Accordingly, the Agency 
strongly recommends that you complete your organization's registration 
with Grants.gov well in advance of the deadline for submitting 
applications.
    USDA encourages both individual and organizational applicants who 
wish to apply through Grants.gov to submit their applications well in 
advance of the deadlines. Early submittal will give you time to resolve 
any system problems or technical difficulties with an electronic 
application through the customer support resources available at the 
Grants.gov Web site while preserving the option of submitting a timely 
paper application if any difficulties cannot be resolved.

5. Disclosure of Information

    All material submitted by the applicant may be made available to 
the public in accordance with the Freedom of Information Act (5 U.S.C. 
552) and USDA's implementing regulations at 7 CFR part 1.

6. Submission Dates and Times

    Applications must be postmarked or hand delivered to the RUS or 
posted to Grants.gov by September 8, 2010. The Agency will begin 
accepting applications on the date of publication of this NOFA. The 
Agency will accept for review all applications postmarked or delivered 
to us by this deadline. Late applications will not be considered and 
will be returned to the applicant.
    For the purposes of determining the timeliness of an application 
the RUS will accept the following as a valid postmarks: the date 
stamped by the United States Postal Service on the outside of the 
package containing the application delivered by U.S. Mail; the date the 
package was received by a commercial delivery service as evidenced by 
the delivery label; the date received via hand delivery to the RUS 
headquarters; and the date an electronic application was posted for 
submission to Grants.gov.

7. Intergovernmental Review

    This program is not subject to the requirements of Executive Order 
12372, ``Intergovernmental Review of Federal Programs,'' as implemented 
under USDA's regulations at 7 CFR part 3015.

8. Funding Restrictions

    Section 19 of the RE Act provides that no more than 4 percent of 
the grant funds may be used for the planning and administrative 
expenses of the grantee not directly related to the grant project.

9. Other Submission Requirements

    Applicants that are submitting paper applications must submit one 
original application package that includes original signatures on all 
required forms and certifications and two copies. Applications should 
be single-sided and submitted on 8\1/2\ by 11-inch white paper. 
Supplemental materials, such as maps, charts, plans, and photographs 
may exceed this size requirement.
    A completed application for first-time applicants must contain all 
required parts in the order indicated in the above section on ``Content 
and Form of Application Submission.'' The

[[Page 47765]]

application package should be paginated either sequentially or by 
section. Applicants seeking reconsideration should follow the special 
instructions above.
    The completed paper application package and two copies must be 
delivered to the RUS headquarters in Washington, DC using United States 
Mail, overnight delivery service, or by hand to the following address: 
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 Community Grant Program.''
    Applicants are advised that regular mail deliveries to Federal 
Agencies, especially of oversized packages and envelopes, continue to 
be delayed because of increased security screening requirements. 
Applicants may wish to consider using Express Mail or a commercial 
overnight delivery service instead of regular mail. Applicants wishing 
to hand deliver or use courier services for delivery should contact the 
Agency representative in advance to arrange for building access. The 
RUS advises applicants that because of intensified security procedures 
at government facilities that any electronic media included in an 
application package may be damaged during security screening. If an 
applicant wishes to submit such materials, they should contact the 
agency representative for additional information.
    The RUS will accept electronic applications through the Federal Web 
portal at https://www.Grants.gov. Applicants wishing to submit 
electronic applications through Grants.gov must follow the application 
procedures and submission requirements detailed on that Web site at 
https://www.Grants.gov. Applicants that file through Grants.gov should 
receive electronic confirmation from Grants.gov that their applications 
have been received within 48 hours of submitting the application. 
Grants.gov will send a second electronic message that the application 
has either been successfully accepted by the system for transmission to 
the grantor agency OR has been rejected due to errors. After the grant 
application deadline has passed, USDA will send an electronic 
confirmation acknowledging that the application has been received by 
the RUS from Grants.gov. Grants.gov will not accept applications for 
filing after the deadline has passed. The Agency will not accept 
applications directly over the Internet, by e-mail, or fax.
    Applicants should be aware that Grants.gov requires that applicants 
complete several preliminary registrations and e-authentication 
requirements before being allowed to submit applications 
electronically. Applicants should consult the Grants.gov Web site and 
allow ample time to complete the steps required for registration before 
submitting their applications. Applicants may download application 
materials and complete forms online through Grants.gov without 
completing the registration requirements. Application materials 
prepared online may be printed and submitted in paper to the Agency as 
detailed above.

10. Multiple Applications

    Eligible applicants may submit only one application per project. 
Multiple tasks and localities may be included in a single proposed 
grant project. No more than $5 million in grant funds will be awarded 
per project application. Applicants may, however, submit applications 
for more than one project.

V. Application Review Information

    All applications for grants must be delivered to the Agency at the 
address listed above or postmarked no later than September 8, 2010 to 
be eligible. After the deadline has passed, t