Opportunity Information: Apply for RD RUS HECG12
Apply for RD RUS HECG12
- The Utilities Programs in the agriculture community development energy sector is offering a public funding opportunity titled "High Energy Cost Grants" 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 29, 2012 and posted on Jun 29, 2012.
- Applicants must submit their applications by Jul 30, 2012. (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.
- The number of recipients for this funding is limited to 5 candidate(s).
- Eligible applicants include: Nonprofits having a 501(c)(3) status with the IRS, other than institutions of higher education Independent school districts City or township governments Public and State controlled institutions of higher education Private institutions of higher education Native American tribal governments (Federally recognized) For profit organizations other than small businesses County governments.
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Opportunity Summary:
The High Energy Cost Grants (HECG) opportunity (Funding Opportunity Number RD RUS HECG12) is a competitive federal grant program run by the USDA Rural Utilities Service (RUS) to help rural communities facing unusually high household energy expenses. For Fiscal Year 2012, RUS made up to $7,000,000 available to fund projects that reduce or address extreme energy costs by improving local energy infrastructure. The program is rooted in long-standing rural electrification policy and is authorized under Section 19 of the Rural Electrification Act of 1936 (7 U.S.C. 918a), with implementing rules in 7 CFR Part 1709. In practical terms, the program is meant to support places where energy is a severe cost burden and where targeted investments in generation, transmission, or distribution systems can make energy more affordable and reliable.
Funding is specifically aimed at communities where the average residential spending for home energy is greater than 275 percent of the national average, which sets a high threshold and narrows eligibility to areas experiencing truly exceptional energy cost pressures. Grant funds can be used across a broad range of infrastructure actions, including acquiring facilities, constructing new systems, extending service, upgrading outdated equipment, or otherwise improving energy generation, transmission, and distribution assets that serve qualifying communities. This flexibility allows applicants to propose solutions that match local conditions, whether that means improving generation capacity, strengthening transmission links, modernizing distribution networks, or making other facility-level improvements that directly affect the energy system residents depend on.
The opportunity is discretionary (meaning projects compete against each other and are selected based on merit and program criteria), and it uses a standard grant instrument rather than a loan or loan guarantee. RUS anticipated making about five awards under this funding round. Individual awards could range from a floor of $20,000 to a ceiling of $3,000,000, allowing both smaller targeted efforts and larger capital projects to compete. The program listing is under CFDA 10.859, titled Assistance to High Energy Cost Rural Communities. Importantly, the announcement states there is no cost-sharing or matching requirement, which can reduce barriers for small communities or organizations that might not be able to contribute large non-federal shares.
A wide range of applicant types are eligible, reflecting the fact that energy systems and community infrastructure can be managed by many kinds of entities. Eligible applicants include state governments and political subdivisions (such as county governments and city or township governments), independent school districts, nonprofit organizations with IRS 501(c)(3) status (other than institutions of higher education), and both public/state-controlled and private institutions of higher education. The program also includes for-profit organizations (other than small businesses) as eligible applicants. Federally recognized Native American tribal governments are explicitly eligible, and the notice also indicates that federally recognized Indian Tribes and Tribal entities may apply, aligning the program with the needs of Tribal communities that often face high fuel and electricity costs due to geography and infrastructure constraints.
Key timing details for this round are straightforward: the opportunity was posted June 29, 2012, with an original and current closing date of July 30, 2012, and an archive date of August 29, 2012. The announcement indicates that the notice itself provides eligibility and application requirements, describes how RUS will evaluate proposals and make award decisions, and explains how to obtain the necessary application materials. Additional application guidance and materials were referenced through an RUS website link (http://www.rurdev.usda.gov/UEPApplyforGrant.html). For applicants who could not access the full announcement electronically, the listed point of contact was Kristi Kubista Hovis at (202) 720-9545 (email listed in the original notice).
High Energy Cost Grants (HECG) (Funding Opportunity Number RD RUS HECG12) - FAQs
1) What is the High Energy Cost Grants (HECG) program?
The High Energy Cost Grants (HECG) program is a competitive federal grant program administered by the USDA Rural Utilities Service (RUS). It is designed to help rural communities that face unusually high household energy costs by funding projects that reduce or address extreme energy expenses through improvements to local energy infrastructure.
2) What is the purpose of this funding opportunity (FY 2012 round)?
For Fiscal Year 2012, the program made funding available for projects that reduce or address extreme energy costs by improving energy generation, transmission, or distribution systems serving qualifying rural communities. The focus is on investments that can make energy more affordable and reliable where energy costs are an exceptional burden.
3) Which agency runs and awards these grants?
The program is run by the USDA Rural Utilities Service (RUS), which administers and awards the grants under this opportunity.
4) What is the Funding Opportunity Number for this HECG round?
The Funding Opportunity Number is RD RUS HECG12.
5) Is this a competitive or formula-based program?
This opportunity is discretionary and competitive, meaning applications are evaluated against program criteria and against one another, and awards are made based on merit and program priorities described in the notice.
6) Is this assistance provided as a grant or a loan?
This opportunity uses a standard grant instrument. It is not described as a loan or a loan guarantee.
7) How much funding was available under this FY 2012 opportunity?
RUS made up to $7,000,000 available for this funding round.
8) How many awards did RUS expect to make?
RUS anticipated making about five awards under this round.
9) What is the minimum and maximum award size?
Individual awards could range from a minimum of $20,000 to a maximum of $3,000,000.
10) Is there a cost-sharing or matching requirement?
No. The announcement states there is no cost-sharing or matching requirement.
11) Who is eligible to apply?
The opportunity lists multiple eligible applicant types, including:
- State governments
- Political subdivisions (for example, county governments, city governments, or township governments)
- Independent school districts
- Nonprofit organizations with IRS 501(c)(3) status (other than institutions of higher education)
- Public/state-controlled institutions of higher education
- Private institutions of higher education
- For-profit organizations (other than small businesses)
- Federally recognized Native American tribal governments
- Federally recognized Indian Tribes and Tribal entities
12) What communities does the program target?
Funding is aimed at communities where the average residential spending for home energy is greater than 275 percent of the national average. This is a high threshold intended to focus the program on places facing truly exceptional home energy cost pressures.
13) What types of projects can grant funds support?
Grant funds can be used for a broad range of energy infrastructure actions that serve qualifying communities, including:
- Acquiring facilities
- Constructing new systems
- Extending service
- Upgrading outdated equipment
- Other improvements to energy generation, transmission, and distribution assets
14) Are projects limited to electricity distribution, or can they include generation and transmission work?
The described eligible uses are broad and include generation, transmission, and distribution improvements, as well as facility acquisition, construction, extension of service, and equipment upgrades that serve qualifying communities.
15) What is the legal authority for the HECG program?
The program is authorized under Section 19 of the Rural Electrification Act of 1936 (7 U.S.C. 918a).
16) What regulations implement the program?
The implementing rules are in 7 CFR Part 1709.
17) What is the CFDA number and program title associated with this opportunity?
The program listing is under CFDA 10.859, titled "Assistance to High Energy Cost Rural Communities."
18) When was the FY 2012 opportunity posted?
The opportunity was posted on June 29, 2012.
19) What was the application deadline for this round?
The original and current closing date listed for this opportunity was July 30, 2012.
20) When was the opportunity archived?
The archive date listed was August 29, 2012.
21) Where could applicants find application materials and additional guidance?
The notice referenced an RUS webpage for application guidance and materials: http://www.rurdev.usda.gov/UEPApplyforGrant.html
22) What information did the notice say it would provide about applying?
The announcement stated that the notice includes eligibility and application requirements, explains how RUS will evaluate proposals and make award decisions, and describes how to obtain the necessary application materials.
23) Who was the point of contact for applicants who could not access the announcement electronically?
The listed point of contact was Kristi Kubista Hovis. The notice provided a phone number: (202) 720-9545, and indicated an email address was listed in the original notice.
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