Grant Details


High Energy Cost Grant (HECG) Program - FY 2025

Agency: U.S. Department of Agriculture
CFDA: 10.859
Federal FON: RD-RUS-HECG25
Office: Rural Development (RD) Rural Utilities Service (RUS)
Multipart Grant: No
Next Due: 02/28/2025 (Application)
Solicitation Date: 12/30/2024
   
Match Required: Recommended
Match Type: Unspecified
Actual Funds: Unspecified
Range: $8,000,000 (Min) / $10,000,000 (Max)
Award Range: $100,000 (Min) / $3,000,000 (Max)
Summary:

The purpose of this program is to offset the impact of extremely high home energy costs by helping communities provide basic energy needs by financing energy infrastructure supporting rural prosperity and job creation. Funding 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 is at least 275 percent of the national average. Funding may also be used to install on-grid and off-grid renewable energy systems and energy efficiency improvements in eligible communities.

Examples of eligible activities include:

  • Acquisition, construction, replacement, repair, or improvement of:
    • Electric generation, transmission, and distribution facilities, equipment, and materials, including associated and supporting activities; land or right-of-way acquisition, engineering and professional expenses, and permitting costs
    • Natural gas distribution or storage facilities and associated equipment and activities serving residential customers or community use
    • Petroleum product storage and handling facilities serving residential or community use
    • Renewable energy facilities used for on-grid or off-grid electric power generation, water or space heating, or process heating and power
    • Backup or emergency power generation or energy storage equipment, including distributed generation installed on consumer premises
  • Implementation of energy efficiency and energy conservation measures, such as weatherization of residences and community facilities, energy-efficient or energy saving appliances and devices as part of a coordinated demand management, or energy conservation programs

The funding agency encourages applicants to consider projects that will advance the following key priorities:

  • Creating more and better markets: assisting rural communities recover economically through more and better market opportunities and through improved infrastructure
  • Advancing racial justice, place-based equity, and opportunity: ensuring all rural residents have equitable access to RD programs and benefits from RD-funded projects
  • Addressing climate change and environmental justice: reducing climate pollution and increasing resilience to the impacts of climate change through economic support to rural communities

Additional consideration will be provided during the application evaluation process to waste heat or energy recovery projects where the project budget does not include the cost of new or repowered generation. Waste heat recovery project costs may include duct and other delivery infrastructure up to but not within a structure wherein the recovered heat will be used. Waste heat recovery projects must incorporate commercially proven technology. Energy efficiency projects may also receive additional consideration, but only those that achieve the 25 percent improvement threshold set by the funding agency.

Eligibility Notes:

Eligible applicants are:

  • Legally organized for-profit and nonprofit organizations, such as corporations; associations; partnerships, including limited liability partnerships; cooperatives; and trusts
  • Sole proprietorships
  • State or local governments, as well as any agency or instrumentality of a state or local government, including municipal utilities or public power authorities
  • Indian tribes, tribally owned entities, and Alaska Native corporations

Applicants may be located within U.S. territories or other areas authorized by law to participate in programs of the Rural Utilities Service (RUS) or the Rural Electrification Act of 1936.

To establish community eligibility, the application must clearly identify and define the geographic area that will be included in the project and demonstrate that each of the communities in the proposed area meets one or more of the high energy cost benchmarks detailed on pages 8-11 of the NOFA file. Communities will qualify as an eligible extremely high energy cost community if average home energy costs in the area to be served are at least 275 percent of the national average under one or more of the high energy cost benchmarks. The smallest area that may be designated as an area is a 2020 Census block, unless otherwise satisfactorily delineated in the application such that data for eligibility determinations is credibly supported.

Additional consideration will be provided during the application evaluation process to smaller rural communities, as detailed on page 31 of the NOFA file. Additional consideration may also be provided to communities that exhibit one or more extraordinary circumstances or conditions, as detailed on pages 32-33 of the NOFA file, that affect their ability to provide energy services or to make investments to reduce energy use or costs. In addition, under substantially underserved trust areas (SUTA) regulations, applicants may request special consideration for applications for communities in trust areas that lack adequate levels or quality of service and are in high need of financial assistance.

Applicants must include only one project per application, but the project may include many locations. Applicants may submit applications for multiple projects; however, an applicant can only be awarded funding for one project.

Applications submitted to this program under previous funding cycles will not be reconsidered.

Ineligible entities include:

  • Corporations that have been convicted of a federal felony within the past 24 months
  • Corporations that have any unpaid federal tax liability that has been assessed, for which all judicial and administrative remedies have been exhausted or have lapsed, and that is not being paid in a timely manner pursuant to an agreement with the authority responsible for collecting the tax liability
  • Those against which an outstanding judgment was obtained and recorded by the United States in a federal court other than in the U.S. Tax Court and the judgement has not been paid in full or otherwise satisfied
Eligible Applicants:
Local Government
Academic Institutions
Native American Tribe
Non Profits
Other
Private Sector
State Government
Tribal Organizations/Institutions
Application Notes:

Applications must be submitted by 11:59 p.m. ET on February 28, 2025. Hard-copy applications must be hand delivered or postmarked and mailed, shipped, or sent overnight by 4:30 p.m. ET on that date.

Applications must be submitted online at www.ecivis.com/grants.gov. Alternatively, one original and one hard copy of the application may be mailed, delivered, or hand delivered to the address provided in the Contact section. Faxed or emailed submissions will not be accepted.

Applications must include:

  • SF 424
  • Project abstract and eligibility statement (3 pages max)
  • Project narrative proposal:
    • Table of contents
    • Executive summary (1 page max)
    • Project description (25 pages max)
  • Forms and certifications:
    • SF 424A (if applicable)
    • SF 424C and SF 424D (if applicable)
    • SF LLL
    • Evidence of active or unexpired System for Award Management (SAM) registration
    • Form RD 400-1
    • Form RD 400-4
    • Environmental questionnaire
  • Supplementary materials (10 pages max)

Applications must be formatted on standard-sized, numbered pages with one-inch margins. Preferred typefaces are 12-point Times New Roman, 11-point Calibri, 11-point Arial, 10-point Verdana, or 10-point Courier font. Narratives may be formatted on single-spaced or double-spaced pages. Hard-copy applications must be printed on single-sided white pages.

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.

Prior to submitting an application, applicants may request technical assistance or other application guidance from Robin Meigel, using the information provided in the Contact section, if such requests are made prior to February 13, 2025.

Applications will be evaluated according to the following criteria:

  • Project design and technical merit (65 points)
  • Priority considerations (35 points)

Refer to the NOFA and Guide files for additional application information.

Match Required: Recommended
Match Type: Unspecified
Actual Funds: Unspecified
Range: $8,000,000 (Min) / $10,000,000 (Max)
Award Range: $100,000 (Min) / $3,000,000 (Max)
Match Notes:

Matching funds are not required for this program; however, the funding agency will consider other financial resources available to the applicant and any voluntary pledge of matching funds or other contributions in assessing the applicant’s commitment and financial capacity to complete the proposed project.

Funding Notes:

Approximately $8 million to $10 million is expected to be available to support awards ranging from $100,000 to $3 million through this program.

Award dates will vary depending on the timing of environmental reviews. Selected finalists are expected to be determined within six months of the application deadline.

The project period is three years. Approvals of any extensions to the original award term are at the sole discretion of the funding agency.

Costs of project development and feasibility analyses are limited to 10 percent of the total project costs.

Soft costs are limited to 15 percent of the award budget and may not exceed the following parameters:

  • Planning studies and administrative expenditures are limited to 4 percent of the total award amount
  • Indirect overhead charges are limited to 4 percent of the total award amount
  • Equipment markups are limited to 10 percent of the total award amount, inclusive of any exclusive distribution rights, that may not be levied, unless service provider offers purchase credit to bridge receipt of award disbursements
  • Project management services are limited to 8 percent of the total award mount or the actual cost of management services that is calculated as a function of time and hourly pricing
  • Engineering design fees are limited to 10 percent of the total award amount

Funds may not be used for:

  • Costs to prepare an application or any finders’ fees or incentives for assisting in the preparation or submission of an application
  • Purchases of fuel or payment of utility bills
  • Routine maintenance or other operating costs
  • Purchase of equipment, structures, or real estate not directly associated with provision of residential energy services
  • Projects that primarily or only consist of educational, outreach, and audit or assessment activities and do not include a substantial investment in physical infrastructure or energy saving improvements
  • Projects that primarily benefit a single household or business
  • Projects that primarily benefit areas outside of eligible communities
  • Research, development, demonstration, or commercialization activities
  • Political activities
  • Payment of any judgment or debt owed to the United States

Refer to pages 22-23 of the NOFA file for additional information regarding unallowable costs.

Contacts:

Robin Meigel
Finance Specialist
(202) 720-9545
energy.grants@usda.gov
robin.meigel@usda.gov

Mailing Address
Rural Utilities Service, Electric Programs
U.S. Department of Agriculture
1400 Independence Avenue, SW, STOP 1560
Room 4121-South Building
Washington, D.C. 20250-1560
Attn: High Energy Cost Grant Program

Contact Notes:

Questions should be directed to Robin Meigel.

Applications must be submitted online at www.ecivis.com/grants.gov or mailed, delivered, or hand delivered to the address provided.

Files:
NOFA File: US2013_NOFA_FY2025.pdf (596.8 Kb)
Guide File: US2013_Guide_FY2025.pdf (717.6 Kb)
Application File: US2013_Application_FY2025.zip (2.3 Mb)
Award File: US2013_Award_FY2025.pdf (1.4 Mb)
File Notes:

The NOFA file contains the full solicitation for this program. The Guide file contains detailed application instructions. The Application folder contains the required forms for submission. The Award file contains information on previous award recipients.

Project: Levelock Power Plant Renovation and Tank Farm Replacement (4.0 Mb)
Applicant: Levelock Village Council
Summary:

The purpose of the Assistance to High Energy Cost Rural Communities Program is to 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. Eligible activities include the acquisition, construction, extension, or improvement of energy generation, transmission, or distribution facilities. Facilities may be on- or off-grid renewable energy systems that will provide cost-effective management and energy conservation programs. Additionally, innovative use or adaptation of energy-related projects that have had commercial success are permissible, as is financing an eligible target community's proportionate share of a larger energy product. The Levelock Village Council requested and received $2,637,831 to renovate their existing power plant to replace failing, obsolete, inefficient, and unsafe equipment. In addition to the $2,637,831 funded, the council provided in-kind matches in the form of land, existing power plant building, equipment, fuel, as well as additional funding in the amount of $305,153. Total amount funded for the project came to $2,942,984.

 
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Grant Categories
Community Development
Disaster Preparedness
Energy
Rural Issues
Human Services