Opportunity Information: Apply for RD RUS HECG2014
Apply for RD RUS HECG2014
- The Utilities Programs in the business and commerce community development energy sector is offering a public funding opportunity titled "Assistance to High Energy Cost Rural Communities" and is now available to receive applicants.
- Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 10.859 Assistance to High Energy Cost Rural Communities.
- This funding opportunity was created on Jun 24, 2014 and posted on Jun 25, 2014.
- Applicants must submit their applications by Aug 1, 2014. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
- The funding agency has allocated a total of $7,000,000.00 to eligible and selected applicants.
- Each selected applicant is eligible to receive up to $3,000,000.00 in funding.
- Eligible applicants include: Special district governments Native American tribal governments (Federally recognized) Public and State controlled institutions of higher education Native American tribal organizations (other than Federally recognized tribal governments) Nonprofits that do not have a 501(c)(3) status with the IRS, other than institutions of higher education Public housing authorities/Indian housing authorities Others (see text field entitled Additional Information on Eligibility for clarification) Private institutions of higher education Individuals For profit organizations other than small businesses State governments Independent school districts Nonprofits having a 501(c)(3) status with the IRS, other than institutions of higher education Small businesses City or township governments County governments.
- Also open to sole proprietorships, legally organized for profit or nonprofit organizations such as, but not limited to, a corporation, association, partnership (including a limited liability partnership), cooperative, or trust. Applicant must be located in the United States, a U.S. Territory or other area authorized by law to participate in programs of the Rural Utilities Service or under the Rural Electrification Act.
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Opportunity Summary:
The Assistance to High Energy Cost Rural Communities grant (Funding Opportunity Number RD RUS HECG2014) is a competitive funding program run by the USDA Rural Utilities Service (RUS) to help rural communities facing exceptionally high household energy burdens. For Fiscal Year 2014, RUS made up to $7,000,000 available in total grant funding to support projects that reduce energy costs, improve reliability, and strengthen local energy infrastructure in places where residents spend far more than average on home energy. The program is aimed specifically at communities whose average annual residential home energy expenditures exceed 275 percent of the national average, signaling extreme energy cost conditions that can undermine household stability, local economic activity, and basic community services.
Grant funds can be used to acquire, construct, or improve energy generation, transmission, or distribution facilities that serve eligible communities. In addition to conventional infrastructure improvements, the opportunity explicitly supports both on-grid and off-grid renewable energy projects, as well as energy efficiency and energy conservation initiatives. In practice, that means an applicant could propose upgrades or new builds that improve how power is produced or delivered, deploy renewable generation that offsets expensive imported fuels, or implement efficiency measures that reduce overall consumption and cost. The underlying purpose is practical: improve community energy services in a way that meaningfully addresses extreme energy expenses and, where relevant, the logistical challenges of remote or hard-to-serve rural areas.
The program does not require cost sharing or matching, which can be a major advantage for small communities and organizations that lack capital for a required match. Individual awards range from a minimum (floor) of $50,000 to a maximum (ceiling) of $3,000,000, allowing for both smaller targeted efforts and larger infrastructure-focused projects. Because the funding is competitive, applicants are evaluated using criteria described by RUS in the full notice, and the agency uses those criteria to determine which proposals provide the strongest benefit relative to need, feasibility, and expected outcomes.
There are also clear restrictions on how the money can be spent. Grant funds cannot be used to prepare the grant application itself, which means applicants must cover proposal development costs with other resources. The funds also cannot be used to pay utility bills, purchase fuel, cover routine maintenance, or pay other routine operating costs. In other words, the grant is designed to finance projects and capital improvements rather than ongoing expenses. Additionally, the program prohibits spending on equipment, structures, or real estate that is not directly connected to providing community energy services, reinforcing that funds must be tightly tied to the eligible energy objectives.
Eligibility is broad and includes many types of applicants, reflecting the range of entities that may own, operate, or support rural energy systems. Eligible applicants include federal and state-recognized and related tribal entities (federally recognized tribal governments and other tribal organizations), state and local governments (including counties, cities or townships, special district governments, and independent school districts), public and private institutions of higher education, public housing authorities and Indian housing authorities, nonprofits (including 501(c)(3) organizations and certain nonprofits without 501(c)(3) status), for-profit organizations (including those other than small businesses), small businesses, individuals, and other entities as clarified by RUS. The notice also indicates eligibility for sole proprietorships and legally organized entities such as corporations, associations, partnerships (including limited liability partnerships), cooperatives, and trusts. Applicants must be located in the United States, a U.S. territory, or another area authorized by law to participate in RUS programs or under the Rural Electrification Act.
Key dates for this specific announcement show it was posted on June 25, 2014, with an application deadline of August 1, 2014, and an archive date of August 31, 2014. The program is listed under CFDA number 10.859 and falls within activity categories that include Energy, Community Development, and Business and Commerce, reflecting its mix of infrastructure investment and community impact goals. Applicants seeking official materials and detailed requirements were directed to the program homepage and could request assistance accessing the full announcement through the listed contact, Karen Larsen, Management Analyst, at 202-720-8787.
Assistance to High Energy Cost Rural Communities (HECG) Grant (RD RUS HECG2014) FAQs
1) What is the Assistance to High Energy Cost Rural Communities (HECG) grant?
The Assistance to High Energy Cost Rural Communities grant (Funding Opportunity Number RD RUS HECG2014) is a competitive grant program administered by the USDA Rural Utilities Service (RUS). It is designed to help rural communities facing exceptionally high household energy burdens by funding projects that reduce energy costs, improve energy reliability, and strengthen local energy infrastructure.
2) What problem is this program meant to address?
The program targets extreme energy cost conditions in rural communities where residents spend far more than average on home energy. The goal is to improve community energy services in a practical way that meaningfully reduces unusually high energy expenses and, where relevant, helps address the logistical challenges of remote or hard-to-serve rural areas.
3) How does a community qualify as a "high energy cost" community under this opportunity?
The opportunity is aimed specifically at communities whose average annual residential home energy expenditures exceed 275 percent of the national average.
4) Who runs this program?
This grant opportunity is run by the USDA Rural Utilities Service (RUS).
5) Is the funding competitive or formula-based?
The funding is competitive. Applicants are evaluated using criteria described by RUS in the full notice, and the agency uses those criteria to determine which proposals provide the strongest benefit relative to need, feasibility, and expected outcomes.
6) How much total funding was available for this announcement?
For Fiscal Year 2014, RUS made up to $7,000,000 available in total grant funding under this opportunity.
7) What is the minimum and maximum award size?
Individual awards range from a minimum of $50,000 to a maximum of $3,000,000.
8) Is a cost share or match required?
No. The program does not require cost sharing or matching.
9) What types of projects can grant funds be used for?
Grant funds can be used to acquire, construct, or improve energy generation, transmission, or distribution facilities that serve eligible communities. The opportunity also explicitly supports:
- On-grid renewable energy projects
- Off-grid renewable energy projects
- Energy efficiency initiatives
- Energy conservation initiatives
10) Are renewable energy projects eligible?
Yes. The opportunity explicitly supports both on-grid and off-grid renewable energy projects.
11) Are energy efficiency and conservation projects eligible?
Yes. The opportunity explicitly supports energy efficiency and energy conservation initiatives as eligible uses of grant funds.
12) What is the program trying to achieve with funded projects?
The stated purpose is to reduce energy costs, improve reliability, and strengthen local energy infrastructure in eligible rural communities where household energy burdens are exceptionally high.
13) What types of applicants are eligible to apply?
Eligibility is broad and includes many types of applicants, including:
- Federal and state-recognized and related tribal entities (including federally recognized tribal governments and other tribal organizations)
- State and local governments (including counties, cities or townships, special district governments, and independent school districts)
- Public and private institutions of higher education
- Public housing authorities and Indian housing authorities
- Nonprofits (including 501(c)(3) organizations and certain nonprofits without 501(c)(3) status)
- For-profit organizations (including those other than small businesses)
- Small businesses
- Individuals
- Other entities as clarified by RUS
14) Are tribal governments and tribal organizations eligible?
Yes. Eligible applicants include federally recognized tribal governments and other tribal organizations, as well as other federal and state-recognized and related tribal entities as described in the notice.
15) Are schools and school districts eligible?
Yes. Independent school districts are listed among eligible local government applicants.
16) Are universities and colleges eligible?
Yes. Both public and private institutions of higher education are listed as eligible applicants.
17) Are nonprofits eligible even if they do not have 501(c)(3) status?
Yes. The eligibility list includes 501(c)(3) organizations and certain nonprofits without 501(c)(3) status.
18) Are for-profit businesses eligible?
Yes. For-profit organizations are included among eligible applicants, including those other than small businesses. Small businesses are also explicitly listed as eligible.
19) Can an individual apply for this grant?
Yes. Individuals are listed among eligible applicants.
20) What kinds of legal entities are eligible to apply?
The notice indicates eligibility for sole proprietorships and legally organized entities such as corporations, associations, partnerships (including limited liability partnerships), cooperatives, and trusts.
21) Are there location requirements for applicants?
Applicants must be located in the United States, a U.S. territory, or another area authorized by law to participate in RUS programs or under the Rural Electrification Act.
22) What costs are explicitly not allowed under this grant?
There are several clear restrictions. Grant funds cannot be used for:
- Preparing the grant application itself (proposal development costs must be covered by other resources)
- Paying utility bills
- Purchasing fuel
- Routine maintenance
- Other routine operating costs
23) Can the grant be used to pay ongoing operating expenses?
No. The grant is designed to finance projects and capital improvements rather than ongoing expenses such as utility bills, fuel, routine maintenance, or other routine operating costs.
24) Can funds be used to buy buildings, equipment, or land unrelated to energy services?
No. The program prohibits spending on equipment, structures, or real estate that is not directly connected to providing community energy services. Funds must be tightly tied to the eligible energy objectives.
25) Can grant funds be used to prepare the application?
No. Grant funds cannot be used to prepare the grant application.
26) When was this funding opportunity posted?
The announcement was posted on June 25, 2014.
27) What was the application deadline?
The application deadline for this specific announcement was August 1, 2014.
28) When was the opportunity archived?
The archive date listed for this opportunity is August 31, 2014.
29) What is the CFDA number for this program?
The program is listed under CFDA number 10.859.
30) What activity categories does this grant fall under?
The activity categories listed include Energy, Community Development, and Business and Commerce.
31) Who can applicants contact for help accessing the full announcement?
Applicants could request assistance accessing the full announcement through the listed contact: Karen Larsen, Management Analyst, at 202-720-8787.
32) Where were applicants directed for official materials and detailed requirements?
Applicants seeking official materials and detailed requirements were directed to the program homepage and to the full notice issued by RUS.
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