Opportunity Information: Apply for RD RUS HECG10
Apply for RD RUS HECG10
- The Utilities Programs in the 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 Aug 9, 2010 and posted on Aug 9, 2010.
- Applicants must submit their applications by Sep 8, 2010 Paper applications must be postmarked on or before Wednesday, September 8, 2010, or hand delivered to the agency by 500 p.m. EDT on Wednesday, September 8, 2010. Electronic applications must be filed with Grants.gov on or before Wednesday, September 8, 2010. Applications will be accepted on publication of this notice.. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
- The funding agency has allocated a total of $15,500,000.00 to eligible and selected applicants.
- Each selected applicant is eligible to receive up to $5,000,000.00 in funding.
- The number of recipients for this funding is limited to 20 candidate(s).
- Eligible applicants include: Unrestricted (i.e., open to any type of entity above), subject to any clarification in text field entitled Additional Information on Eligibility.
- The category of grant applicants is unrestricted, however, Applicants must meet all of the following requirements to receive a grant (1) You must be an eligible applicant and located in the United States or a U.S. Territory, Possession, or other area authorized by law to participate in programs of the Rural Utilities Service or the Rural Electrification Act of 1936, as amended (7 U.S.C. 901 et seq.). (2) The grant project must serve an eligible extremely high energy cost community and not be for the benefit of a single household or business. (3) The proposed project must provide or improve energy generation, transmission, or distribution facilities serving an eligible community. (4) The planning administrative costs of the grantee not directly related to carrying out the grant project must not exceed 4 percent of grant funds.
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Opportunity Summary:
The USDA Rural Utilities Service (RUS) High Energy Cost Grant (HECG) Program is a competitive federal grant opportunity designed to help rural communities where households pay exceptionally high energy costs. The program focuses on places where average home energy costs are more than 275 percent of the national average, and it provides funding to build, improve, or modernize the local energy infrastructure so communities can get more reliable service and, ideally, lower long-term energy costs. The core intent is practical: finance projects that strengthen energy generation, transmission, or distribution systems serving eligible rural areas, including projects that improve efficiency or introduce renewable energy options.
To qualify, an applicant has to show that the community being served meets the program definition of an "extremely high energy cost" community under one or more benchmarks derived from U.S. Department of Energy Energy Information Administration survey data. For the 2010 benchmarks listed in the notice, the thresholds (set at 275 percent of national averages) include: electricity at $0.264 per kilowatt-hour or $3,010 in average annual household electricity costs; natural gas at $30.30 per thousand cubic feet or $1,988 per year; fuel oil at $5.54 per gallon or $3,921 per year; LPG/propane at $5.10 per gallon or $2,255 per year; and total household energy at $51.62 per million Btus or $4,860 per year. The project must benefit an eligible community rather than a single household or business, and it must be aimed at delivering or improving community energy services.
The range of eligible projects is broad as long as the work directly supports energy service delivery or reduces energy service costs for the eligible community. Fundable activities include acquiring, constructing, installing, repairing, replacing, or improving electric generation, transmission, and distribution infrastructure and related equipment, along with supporting needs like right-of-way or land acquisition, engineering and professional services, and permitting. The program also supports natural gas distribution or storage facilities, petroleum product storage and handling infrastructure, and renewable energy facilities and equipment. Renewable technologies explicitly mentioned include solar, wind, hydropower, and biomass, and the eligible uses cover both power generation and renewable heating applications (water, space, or process heating). Backup or emergency power generation and energy storage are also eligible, including distributed generation installed at consumer premises, as long as the purpose is aligned with improving community energy service and not simply benefiting an individual customer.
There are clear restrictions on what the grant cannot pay for. Funds cannot be used to pay utility bills, buy fuel, cover routine maintenance or normal operating costs, purchase equipment/structures/real estate that is not directly tied to providing community energy services, or pay for the preparation of the grant application itself. The notice also limits certain administrative and planning costs that are not directly tied to delivering the project: those indirect administrative expenses cannot exceed 4 percent of the grant funds.
Eligibility for applicants is described as "unrestricted" in category, but it still comes with baseline conditions. Applicants must be located in the United States or an eligible U.S. territory or possession and must be able to participate under Rural Utilities Service authorities and the Rural Electrification Act of 1936 (as amended). Beyond applicant eligibility, the project itself must meet the program tests: it must serve an eligible extremely high energy cost community, it must address energy generation/transmission/distribution (or related eligible improvements such as renewables and efficiency), and it must be structured to benefit the broader community.
Awards are made through a competitive review process. All timely and complete applications are scored and ranked by an agency rating panel using evaluation criteria published in the Notice of Funding Availability (NOFA). The program gives priority consideration to rural communities with economic hardship and considers rural status in part based on population. Final selections are made in rank order with panel recommendations, and all awards depend on available appropriations.
For this specific funding notice (Funding Opportunity Number RD RUS HECG10; CFDA 10.859), USDA anticipated about 20 awards with an estimated total of $15.5 million available. Individual grant amounts ranged from a $75,000 floor to a $5,000,000 ceiling, and there was no cost-sharing or matching requirement. The opportunity was posted August 9, 2010, with an application deadline of September 8, 2010 (paper applications postmarked by that date or hand-delivered by 5:00 p.m. EDT; electronic submissions due through Grants.gov by the same date). The administering agency was USDA Utilities Programs within Rural Utilities Service, and the listed agency contact was Karen Larsen (202-720-8787).
USDA RUS High Energy Cost Grant (HECG) Program FAQs
What is the USDA Rural Utilities Service (RUS) High Energy Cost Grant (HECG) Program?
The High Energy Cost Grant (HECG) Program is a competitive federal grant program run by the USDA Rural Utilities Service (RUS). It is designed to help rural communities where households pay exceptionally high energy costs by funding projects that build, improve, or modernize local energy infrastructure. The overall goal is to improve reliability of energy service and help reduce long-term energy costs for the community.
What problem is this grant meant to address?
This opportunity targets rural places where household energy costs are extremely high compared to national averages. The program focuses on communities where average home energy costs are more than 275 percent of the national average, and it supports practical infrastructure solutions such as generation, transmission, distribution, efficiency improvements, and renewable energy options.
What does the program consider an "extremely high energy cost" community?
An eligible community must meet the program definition of an "extremely high energy cost" community under one or more benchmarks derived from U.S. Department of Energy Energy Information Administration (EIA) survey data. The notice states that eligibility is based on thresholds set at 275 percent of national averages (for the benchmarks listed in the notice).
What are the specific 2010 benchmark thresholds mentioned in the notice?
The notice lists the following 2010 benchmark thresholds (275 percent of national averages):
- Electricity: $0.264 per kilowatt-hour or $3,010 in average annual household electricity costs
- Natural gas: $30.30 per thousand cubic feet or $1,988 per year
- Fuel oil: $5.54 per gallon or $3,921 per year
- LPG/propane: $5.10 per gallon or $2,255 per year
- Total household energy: $51.62 per million Btus or $4,860 per year
Does the project have to benefit a whole community, or can it serve a single customer?
The project must benefit an eligible community rather than a single household or business. It must be aimed at delivering or improving community energy services.
What types of projects are eligible for HECG funding?
Eligible projects are broad as long as they directly support energy service delivery or reduce energy service costs for an eligible community. The notice includes projects that acquire, construct, install, repair, replace, or improve energy infrastructure and related equipment, especially for electric generation, transmission, and distribution.
Are electric generation, transmission, and distribution improvements eligible?
Yes. The program explicitly supports projects involving electric generation, transmission, and distribution infrastructure and related equipment, including work to build, improve, modernize, repair, replace, or install these systems.
Can grant funds be used for related project needs like land acquisition, engineering, and permits?
Yes. The notice identifies supporting needs such as right-of-way or land acquisition, engineering and professional services, and permitting as eligible when they are tied to delivering the project.
Are natural gas projects eligible?
Yes. The program supports natural gas distribution or storage facilities.
Are petroleum-related energy infrastructure projects eligible?
Yes. The notice includes petroleum product storage and handling infrastructure as eligible.
Are renewable energy projects eligible under this program?
Yes. The notice explicitly includes renewable energy facilities and equipment. Renewable technologies mentioned include solar, wind, hydropower, and biomass.
Does renewable eligibility cover heating projects as well as electricity generation?
Yes. The eligible uses cover both power generation and renewable heating applications, including water heating, space heating, or process heating.
Are backup or emergency power systems eligible?
Yes. Backup or emergency power generation and energy storage are eligible uses under the notice.
Is energy storage eligible?
Yes. Energy storage is specifically listed as eligible.
Can distributed generation installed at consumer premises be funded?
Yes, distributed generation installed at consumer premises can be eligible as long as its purpose aligns with improving community energy service and it is not simply to benefit an individual customer.
What are examples of costs the grant cannot pay for?
The notice states that funds cannot be used to:
- Pay utility bills
- Buy fuel
- Cover routine maintenance or normal operating costs
- Purchase equipment, structures, or real estate that is not directly tied to providing community energy services
- Pay for preparation of the grant application
Is there a limit on indirect administrative or planning costs?
Yes. The notice limits certain administrative and planning costs that are not directly tied to delivering the project. These indirect administrative expenses cannot exceed 4 percent of the grant funds.
Who is eligible to apply?
Applicant eligibility is described as "unrestricted" in category, but applicants must be located in the United States or an eligible U.S. territory or possession, and they must be able to participate under Rural Utilities Service authorities and the Rural Electrification Act of 1936 (as amended).
Does an eligible applicant automatically mean a proposed project is eligible?
No. In addition to applicant eligibility, the project must meet program requirements: it must serve an eligible extremely high energy cost community, it must address energy generation/transmission/distribution (or related eligible improvements such as renewables and efficiency), and it must be structured to benefit the broader community.
How are awards made?
Awards are made through a competitive review process. Timely and complete applications are scored and ranked by an agency rating panel using evaluation criteria published in the Notice of Funding Availability (NOFA). Final selections are made in rank order with panel recommendations, and awards depend on available appropriations.
Does the program provide any priority consideration?
Yes. The program gives priority consideration to rural communities with economic hardship. Rural status is considered in part based on population, as described in the notice.
Is cost-sharing or matching required?
No. For this specific funding notice, there was no cost-sharing or matching requirement.
What is the funding opportunity number and CFDA number for this notice?
The notice lists Funding Opportunity Number RD RUS HECG10 and CFDA 10.859.
How much funding was anticipated under this notice, and how many awards?
USDA anticipated about 20 awards with an estimated total of $15.5 million available (subject to appropriations).
What were the minimum and maximum individual grant amounts?
Individual grant amounts ranged from a minimum of $75,000 to a maximum of $5,000,000.
When was this opportunity posted and when was the application deadline?
The opportunity was posted on August 9, 2010. The application deadline was September 8, 2010.
What were the submission rules for paper applications?
Paper applications had to be postmarked by September 8, 2010, or hand-delivered by 5:00 p.m. EDT on September 8, 2010.
What were the submission rules for electronic applications?
Electronic submissions were due through Grants.gov by September 8, 2010.
Which USDA office administered the program for this notice?
The administering agency was USDA Utilities Programs within the Rural Utilities Service (RUS).
Who was the listed agency contact for this notice?
The notice lists Karen Larsen as the agency contact, with phone number 202-720-8787.
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