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Appalachian Regional Energy Hub Initiative (Select Areas) - FY 2024

Agency: U.S. Department of Agriculture
Office: Appalachian Regional Commission (ARC)
Multipart Grant: No
Next Due: 07/24/2024 (Application)
Solicitation Date: 03/26/2024
   
Match Required: Yes
Match Type: Cash/In-Kind
Actual Funds: $5,000,000 (Confirmed)
Award Range: $5,000,000 (Max)
Summary:

The purpose of this program is to support projects that involve research, analysis, and planning regarding the economic impact of an ethane storage hub in the Appalachian Region. The storage hub is intended to support more effective energy market performance due to the scale of the project, and to help establish a regional energy hub for natural gas and natural gas liquids, including hydrogen produced from the steam-methane reforming of natural gas feedstocks. Eligible project types include research projects focused on natural gas, natural liquids, and the ethane energy hub; and implementation projects that support the establishment of a regional hydrogen energy hub from natural gas.

Projects must address one or more of the following funding agency goals:

  • Building Appalachian businesses
  • Building Appalachia's workforce ecosystem
  • Building Appalachia's infrastructure
  • Building regional culture and tourism
  • Building community leaders and capacity

Eligible activities for research projects include:

  • Quantifying the economic and environmental impact of (an) energy hub(s) in Appalachia, including documentation of job creation and tax base expansion in impacted areas
  • Developing an inventory of the natural gas production assets in the Region, including locations
  • Surveying the potential for commoditization of natural gas liquids (NGLs) by having an energy hub in the Region
  • Conducting a comprehensive analysis of the potential benefits to the broader petrochemical and plastics industries with respect to supply diversity and cost competitiveness
  • Surveying which industries within the Region would benefit from having natural gas, natural gas liquids, and their byproducts, including hydrogen produced from the steam-methane reforming of natural gas feedstocks
  • Evaluating the current state of existing infrastructure and identifying gaps for making the transition from natural gas/natural gas liquids/hydrogen
  • Identifying policy and regulatory challenges for the development of an energy hub, including policy proposals
  • Documenting transportation challenges and transit needs to support an energy hub development
  • Determining the availability of reliable underground geological storage areas
  • Assessing the feasibility of and capacity for carbon capture, utilization, and storage in target areas

Eligible activities for implementation projects include:

  • Facilitating the workforce needs for the establishment of a sustainable hydrogen energy hub from natural gas steam-methane reforming
  • Facilitating community agreements to ensure local and regional economic benefits for the communities within the hydrogen energy hub footprint
  • Adopting commercially available technologies capable of being fueled by the hydrogen energy hub outputs
  • Designing plans for and/or adopting hydrogen-ready building codes and/or community planning for a hydrogen-based economy
  • Funding demonstrations or pilot projects using technologies that can be fueled by the hydrogen energy hub outputs
  • Developing innovative application of absorption solvent systems and new carbon dioxide (CO2) membranes, adsorbents, or combination of technologies

Refer to pages 4-5 of the NOFA file for information on additional eligible activities through this program.

Eligibility is limited to projects that serve and benefit a portion of the Appalachian Region as defined by the Appalachian Region Development Act (ARDA) of 1965, as amended. The Appalachian Region includes certain counties in Alabama, Georgia, Kentucky, Maryland, Mississippi, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Virginia, and all of West Virginia. Refer to the Eligibility section for details.

Eligibility Notes:

Eligible applicants are:

  • Local development districts (LDDs)
  • Indian tribes, or a consortium of Indian tribes
  • States
  • Counties
  • Cities
  • Other political subdivisions of a state, including a special purpose unit of a state or local government engaged in economic or infrastructure development activities
  • Consortia of political subdivisions
  • Institutions of higher education, or a consortium of institutions of higher education
  • Labor organizations, or labor management partnerships

Applicants for research projects must have the ability and capacity to perform, contract out, and/or subaward funds to eligible subrecipients.

Projects must serve and benefit a portion of the Appalachian Region as defined by the Appalachian Region Development Act (ARDA) of 1965, as amended. The Appalachian Region includes certain counties in Alabama, Georgia, Kentucky, Maryland, Mississippi, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Virginia, and all of West Virginia. If projects extend beyond the Appalachian Region, only the portion located within the region is eligible for program funding.

Eligible Applicants:
Local Government
Academic Institutions
Consortia
Native American Tribe
State Government
Application Notes:

Prior to application submission, applicants are required to contact the state program managers of the states impacted by the proposed project, using the information provided in the Contact section.

Applications must be submitted by July 24, 2024.

Applications must be emailed to the address provided in the Contact section.

Applications must contain:

  • Narrative responses (15 pages max)
  • Attachments (50 pages max):
    • SF 424
    • SF 424A
    • SF 424B
    • Letter(s) of commitment for matching funds
    • Member, Appraisal Institute (MAI) property appraisal (if applicable)
    • Additional supporting documents (optional)

The following are required in order to submit an application:

  • Unique Entity Identifier (UEI) number
  • SAM (System for Award Management) registration

Applicants may obtain a UEI number and verify or renew SAM registration status at www.ecivis.com/sam.

Applications will be evaluated based on the following criteria:

  • Executive summary (5 points)
  • Statement of need or opportunity (5 points)
  • Project description, scope of work, and methodology (35 points)
  • Qualifications and prior experience (25 points)
  • Cost effectiveness, budget, and match (10 points)
  • Management proposal and staffing (15 points)
  • Carbon capture (5 points)

Refer to the NOFA file for additional application information.

Match Required: Yes
Match Type: Cash/In-Kind
Actual Funds: $5,000,000 (Confirmed)
Award Range: $5,000,000 (Max)
Match Notes:

Applicants must provide a portion of the total project cost via cash and/or in-kind contributions. The required percentage of matching funds will be calculated according to the level(s) of economic distress in the project area. If a project is located in a single county, the following amounts are required:

  • Distressed counties: 20 percent
  • At-risk counties: 30 percent
  • Transitional counties: 50 percent
  • Competitive counties: 70 percent

For projects that include multiple counties, the match percentage will be determined on a project-by-project basis.

Cash contributions may include the award recipient's own funds, donations from nonfederal third-parties, or loans.

In-kind contributions may include:

  • Real property
  • Equipment
  • Supplies
  • Training
  • Expendable property
  • Personnel time
  • Person on loan from another organization/corporation
  • Donation or use of equipment
  • Expert services
  • Value of a lease for project space

Applications must include a formal letter from each matching source indicating a firm commitment to provide the required match. Resources listed as match should be confirmed or accessible within 60 days of the contract date. Applicants should demonstrate community and regional commitment to the proposed project by combining program funding with a diverse array of match types and sources.

Refer to the MatchRequirements file for additional information on match requirements for this program.

Funding Notes:

A total of $5 million is available to support awards of up to $5 million through this program. The funding agency anticipates awarding a single research award and at least one implementation award.

Funds may not be used for construction projects. However, construction awards may be considered in subsequent funding rounds.

Contacts:

Program Staff
energyhub@arc.gov

Agency Address
Appalachian Regional Commission
1666 Connecticut Ave., NW, Suite 700
Washington, D.C. 20009

Contact Notes:

Questions should be directed to the program staff.

Prior to application submission, applicants must contact the appropriate state program manager(s) listed online at www.arc.gov.

Applications must be emailed to the address provided.

The agency address provided is for reference purposes only.

Files:
NOFA File: US17638_NOFA_FY2024.pdf (292.5 Kb)
Other Pre-Award File: US17638_MatchRequirements_FY2024.pdf (199.2 Kb)
File Notes:

The NOFA file contains the full solicitation for this program. The MatchRequirements file contains information regarding matching fund requirements for this program.

Grant Keywords
Appalachian Regional Commission, ARC, Appalachian Region, Appalachia, energy, energy hub, regional energy hub, business, workforce, infrastructure, culture, tourism, community leader, capacity, research, analysis, planning, economic impact, ethane storage, ethane, energy market, effective energy market performance, natural gas, natural gas liquid, hydrogen, steam methane, natural gas feedstock, feedstock, economy, environmental impact, environment, production, NGL, profit, sustainability, sustainable, fuel, industry, environmental, protect, protection, implementation, hydrogen energy, community agreement, tribe, tribal
Grant Categories
Economic Development
Energy
Environment/Natural Resources