[Federal Register Volume 75, Number 152 (Monday, August 9, 2010)]
[Notices]
[Pages 47756-47769]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-19509]
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DEPARTMENT OF AGRICULTURE
Rural Utilities Service
Announcement of Grant Application Deadlines and Funding Levels
for the Assistance to High Energy Cost Rural Communities
AGENCY: Rural Utilities Service, USDA.
ACTION: Notice of funding availability (NOFA).
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SUMMARY: The Rural Utilities Service (RUS), an agency of the United
States Department of Agriculture (USDA), announces the availability of
$15.5 million in Fiscal Year 2010 for competitive grants to assist
communities with extremely high energy costs. This grant program is
authorized under section 19 of the Rural Electrification Act of 1936
(RE Act) (7 U.S.C. 918a) and program regulations at 7 CFR Part 1709.
The grant funds 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 exceeds 275 percent of the national
average. Eligible applicants include persons, States, political
subdivisions of States, and other entities organized under State law.
Federally-recognized Indian Tribes and Tribal entities are eligible
applicants. This notice describes the eligibility and application
requirements, the criteria that will be used by the Agency to award
funding, and information on how to obtain application materials. The
Catalog of Federal Domestic Assistance (CFDA) Number for this program
is 10.859. You may obtain the Application Guide and materials for the
Assistance to High Energy Cost Rural Communities Grant Program via the
Internet at the following Web site: http://www.usda.gov/rus/electric/hecgp/index.htm. You may also request the Application Guide and
materials from RUS by contacting the individual listed
[[Page 47757]]
in the FOR FURTHER INFORMATION CONTACT section of this notice.
DATES: You may submit completed grant applications on paper or
electronically according to the following deadlines:
Paper applications must be postmarked and mailed, shipped,
or sent overnight, no later than September 8, 2010, or hand delivered
to RUS by this deadline, to be eligible under this NOFA. Late or
incomplete applications will not be eligible for FY 2010 grant funding.
Electronic applications must be submitted through
Grants.gov no later than September 8, 2010 to be eligible under this
NOFA for FY 2010 grant funding. Late or incomplete electronic
applications will not be eligible. Applications will not be accepted by
electronic mail. Applications will be accepted on publication of this
notice.
ADDRESSES: You may submit completed applications for grants on paper or
electronically to the following addresses:
Paper applications are to be submitted to the Rural
Utilities Service, Electric Programs, United States Department of
Agriculture 1400 Independence Avenue, SW., STOP 1560, Room 5165 South
Building, Washington, DC 20250-1560. Applications should be marked
``Attention: High Energy Cost Grant Program.''
Applications may be submitted electronically through
Grants.gov. Information on how to submit applications electronically is
available on the Grants.gov Web site (http://www.Grants.gov).
Applicants must successfully pre-register with Grants.gov to use the
electronic applications option. Application information may be
downloaded from Grants.gov without pre-registration.
Application Guides and materials may be obtained electronically
through: http://www.usda.gov/rus/electric/hecgp/index.htm. Call the RUS
Electric Programs at (202) 720-9545 to request paper copies of
Application Guides and other materials.
FOR FURTHER INFORMATION CONTACT: Karen Larsen, Management Analyst,
Rural Utilities Service, Electric Programs, United States Department of
Agriculture, 1400 Independence Avenue, SW., STOP 1560, Room 5165 South
Building, Washington, DC 20250-1560. Telephone 202-720-9545, Fax 202-
690-0717, e-mail [email protected].
SUPPLEMENTARY INFORMATION:
Overview Information
Federal Agency Name: United States Department of Agriculture, Rural
Utilities Service, Assistant Administrator, Electric Programs.
Funding Opportunity Title: Assistance to High Energy Cost Rural
Communities.
Announcement Type: Initial announcement.
Funding Opportunity Number: RD-RUS-HECG10.
Catalog of Federal Domestic Assistance (CFDA) Number: 10.859. The
CFDA title for this program is ``Assistance to High Energy Cost Rural
Communities.''
Dates: Applications must be postmarked and mailed or shipped, or
hand delivered to the RUS, or filed with Grants.gov by September 8,
2010.
I. Funding Opportunity Description
The Rural Utilities Service (RUS) is making available $15.5 million
in competitive grants under section 19 of the Rural Electrification Act
of 1936 (the ``RE Act'') (7 U.S.C. 918a). Under section 19, the RUS
Administrator is authorized to make grants to ``acquire, construct,
extend, upgrade, and otherwise improve energy generation, transmission,
or distribution facilities'' serving extremely high energy cost
communities. Eligible communities are those in which the average
residential expenditure for home energy is at least 275 percent of the
national average residential expenditure for home energy under one or
more of the benchmarks published in this notice. Program regulations
are codified at 7 CFR part 1709.
The purpose of this grant program is 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. Grant funds may be used to purchase,
construct, extend, repair, upgrade and otherwise improve energy
generation, transmission, or distribution facilities serving eligible
communities. Eligible facilities include on-grid and off-grid renewable
energy systems and implementation of cost-effective demand side
management and energy conservation programs that benefit eligible
communities. Grant funds may not be used to pay utility bills or to
purchase fuel. Grant projects under this program must provide community
benefits and not be for the sole benefit of an individual applicant,
household, or business.
Eligible applicants include for-profit and non-profit businesses,
cooperatives, and associations, States, political subdivisions of
States, and other entities organized under the laws of States, Indian
Tribes, Tribal entities, and individuals. Eligible applicants also
include entities located in U.S. Territories and other areas authorized
by law to participate in the Agency's programs or programs under the RE
Act.
No cost sharing or matching funds are required as a condition of
eligibility under this grant program. However, the RUS will consider
other financial resources available to the applicant and any voluntary
commitment of matching funds or other contributions in assessing the
applicant's capacity to carry out the grant program successfully. The
RUS will award additional evaluation points to any proposals that
include such contributions.
As a further condition of each grant, section 19(b)(2) of the RE
Act requires that planning and administrative expenses of the grantee
not directly related to the project may not exceed 4 percent of the
grant funds.
This NOFA provides an overview of the grant program, and the
eligibility and application requirements, and selection criteria for
grant proposals. This NOFA includes changes to eligibility benchmarks
and to scoring criteria. Applicants are encouraged to review the notice
carefully. RUS is also making available an Application Guide with more
detailed information on application requirements and copies of all
required forms and certifications. The Application Guide is available
on the Internet from the Agency Web site at: http://www.usda.gov/rus/electric/hecgp/index.htm. The Application Guide may also be requested
from the contact listed in the FOR FURTHER INFORMATION CONTACT section
of this notice. For additional information, applicants should consult
the program regulations at 7 CFR part 1709.
Definitions
Consult the program regulations at 7 CFR part 1709 and the
Application Guide for additional definitions used in this program. As
used in this NOFA:
Agency means the Rural Utilities Service (RUS) of the United States
Department of Agriculture.
Application Guide means the Application Guide prepared by the
Agency for the High Energy Cost Grant program containing detailed
instructions for determining eligibility and preparing grant
applications, and copies of required forms, questionnaires, and model
certifications.
Extremely high energy costs means community average residential
energy costs that meet or exceed one or more home energy cost
benchmarks
[[Page 47758]]
established by the Administrator at 275 percent of the national average
residential energy expenditures as reported by the Energy Information
Administration (EIA) of the United States Department of Energy.
Home energy means any energy source or fuel used by a household for
purposes other than transportation, including electricity, natural gas,
fuel oil, kerosene, liquefied petroleum gas (propane), other petroleum
products, wood and other biomass fuels, coal, wind, and solar energy.
Fuels used for subsistence activities in remote rural areas are also
included.
High energy cost benchmarks means the criteria established by the
Administrator for eligibility as an extremely high energy cost
community. Home energy cost benchmarks are calculated for total annual
household energy expenditures; total annual expenditures for individual
fuels; annual average per unit energy costs for primary home energy
sources and are set at 275 percent of the relevant national average
household energy expenditures.
Indian Tribe means a Federally recognized Tribe as defined under
section 4 of the Indian Self-Determination and Education Assistance Act
(25 U.S.C. 450b) to include ``* * * any Indian Tribe, band, nation, or
other organized group or community, including any Alaska Native village
or regional or village corporation as defined in or established
pursuant to the Alaska Native Claims Settlement Act [43 U.S.C. 1601 et
seq.], that is recognized as eligible for the special programs and
services provided by the United States to Indians because of their
status as Indians.''
Person means any natural person, firm, corporation, association, or
other legal entity, and includes Indian Tribes and Tribal entities.
Primary home energy source means the energy source that is used for
space heating or cooling, water heating, cooking, and lighting. A
household or community may have more than one primary home energy
source.
State rural development initiative means a rural economic
development program funded by or carried out in cooperation with a
State agency or Indian Tribe.
Target area means the geographic area to be served by the grant.
Target community means the unit or units of local government in
which the target area is located.
Tribal entity means a legal entity that is owned, controlled,
sanctioned, or chartered by the recognized governing body of an Indian
Tribe.
II. Award Information
The total amount of funds available for grants in Fiscal Year 2010
under this notice is $15.5 million. The maximum amount of grant
assistance that will be considered for funding in a grant application
under this notice is $5,000,000. The minimum amount of assistance for a
grant application under this program is $75,000. The number of grants
awarded under this NOFA will depend on the number of applications
submitted, the amount of grant funds requested, the quality and
competitiveness of applications submitted, and the availability of
funds.
The funding instrument available under this NOFA will be a grant
agreement. Grants awarded under this notice must comply with all
applicable USDA and Federal regulations concerning financial
assistance, with the terms of this notice, and with the requirements of
section 19 of the RE Act. Grants made under this NOFA will be
administered under the Agency program regulations at 7 CFR part 1709
and USDA financial assistance regulations at 7 CFR parts 3015, 3016,
3017, 3018, 3019, and 3052, as applicable. The award period will
generally be for 36 months, however, longer periods may be approved
depending on the project involved. Grantees may request project
extensions.
A new applicant must provide a narrative grant proposal prepared
according to the instructions in this NOFA along with all required
forms and information in order to submit a complete application.
Any prior applicant that submitted a project proposal in response
to the NOFA published on January 28, 2008 (73 FR 4,778) may request
reconsideration of the earlier application if the applicant was
notified in writing by the RUS that the application was accepted as
complete and timely, but was not selected for funding. The RUS has
retained these original applications. These 2008 eligible applicants
may submit additional information for consideration of their 2008
applications as described later in this notice. Applicants under the
2008 NOFA that were rejected as incomplete or ineligible may submit new
or revised applications that meet the requirements of this NOFA.
All timely submitted and complete applications will be reviewed for
eligibility and rated according to the criteria described in this NOFA.
Applications will be ranked in order of their numerical scores on the
rating criteria and forwarded to the RUS Administrator. The
Administrator will review the rankings and the recommendations of the
rating panel. The Administrator will then fund grant applications in
rank order. The Agency reserves the right in its sole discretion to
make additional awards to applications submitted under this
announcement through reprogramming available program funds.
The RUS reserves the right not to award any or all the funds made
available under this notice, if in the sole opinion of the
Administrator, the grant proposals submitted are not deemed feasible
under program requirements. The RUS also reserves the right to
partially fund grants if grant applications exceed the available funds.
The RUS will advise applicants if it cannot fully fund a grant request.
III. Eligibility Information
1. Eligible Applicants
Under Section 19 eligible applicants include ``Persons, States,
political subdivisions of States, and other entities organized under
the laws of States'' (7 U.S.C. 918a). Under section 13 of the RE Act,
the term ``Person'' means ``any natural person, firm, corporation, or
association'' (7 U.S.C. 913). Examples of eligible business applicants
include: for-profit and non-profit business entities, including but not
limited to corporations, associations, partnerships, limited liability
partnerships (LLPs), cooperatives, trusts, and sole proprietorships.
Eligible government applicants include State and local governments,
counties, cities, towns, boroughs, or other agencies or units of State
or local governments; and other agencies and instrumentalities of
States and local governments. Indian Tribes, other Tribal entities and
Alaska Native Corporations are also eligible applicants.
An individual is an eligible applicant under this program; however,
the proposed grant project must provide community benefits and not be
for the sole benefit of an individual applicant or an individual
household or business.
All applicants must demonstrate the legal capacity to enter into a
binding grant agreement with the Federal Government at the time of the
award and to carry out the proposed grant funded project according to
its terms.
The Office of Management and Budget requires that all applicants
for Federal grants with the exception of individuals other than sole
proprietorships must provide a Dun and Bradstreet (D&B) Data Universal
Numbering System (DUNS) number with their applications. Consistent with
this Federal policy
[[Page 47759]]
directive, any organization or sole proprietorship that applies for a
high energy cost grant must use its DUNS number on the application and
in the field provided on the revised Standard Form 424 (SF 424)
``Application for Federal Assistance'' to be eligible to apply. DUNS
numbers are available for free to Federal Grant applicants on line at
http://fedgov.dnb.com/webform or may be obtained through a short phone
call to D&B. Please see the ``Get Registered'' section on Grants.gov
for more information on how to obtain a DUNS number or how to verify if
your organization already has a DUNS number. If you already have
obtained a DUNS number in connection with the Federal acquisition
process or requested or had one assigned to you for another purpose,
you should use that number on all of your applications. It is not
necessary to request another DUNS number from D&B.
2. Cost Sharing and Matching
No cost sharing or matching funds are required as a condition of
eligibility under this grant program. However, the RUS will consider
other financial resources available to the grant applicant and any
voluntary pledge of matching funds or other contributions in assessing
the applicant's commitment and capacity to carry out the grant program
successfully and will award additional evaluation points to proposals
that include such contributions. If a successful applicant proposes to
use matching funds or other cost contributions in its project to obtain
additional evaluation points, the grant agreement will include
conditions requiring documentation of the availability of the matching
funds and actual expenditure of matching funds or cost contributions.
The Agency may require the applicant to provide additional
documentation confirming the availability of any matching contribution
offered prior to approval of project selection. If an applicant fails
to provide timely documentation of the availability of matching
contributions, the RUS may, in its sole discretion, disallow any points
awarded for matching contributions and rescore the project, or decline
to award the project if uncertainties over availability of the match
render the project financially infeasible; and/or impose additional
conditions.
3. Other Eligibility Requirements
A. Eligible Projects
Grantees must use grant funds for eligible grant purposes. Grant
funds may be used to acquire, construct, extend, upgrade, or otherwise
improve energy generation, transmission, or distribution facilities
serving eligible communities. All energy generation, transmission, and
distribution facilities and equipment, used to provide electricity,
natural gas, home heating fuels, and other energy service to eligible
communities are eligible. Projects providing or improving energy
services to eligible communities through on-grid and off-grid renewable
energy projects, energy efficiency, and energy conservation projects
are eligible. A grant project is eligible if it improves, or maintains
energy services, or reduces the costs of providing energy services to
eligible communities. Grant funds may not be used to pay utility bills
or to purchase fuels.
Grants may cover up to the full costs of any eligible projects
subject to the statutory condition that no more than 4 percent of grant
funds may be used for the planning and administrative expenses of the
grantee. The program regulations at 7 CFR part 1709 provide more detail
on allowable uses of grant funds, limitations on grant funds, and
ineligible grant purposes.
The project must serve communities that meet the extremely high
energy cost eligibility requirements described in this NOFA. The
applicant must demonstrate that the proposed project will benefit the
eligible communities. Projects that primarily benefit a single
household or business are not eligible. Additional information and
examples of eligible project activities are contained in the
Application Guide.
Grant funds cannot be used for: Preparation of the grant
application, fuel purchases, routine maintenance or other operating
costs, and purchase of equipment, structures, or real estate not
directly associated with provision of residential energy services. In
general, grant funds may not be used to support projects that primarily
benefit areas outside of eligible target communities. However, grant
funds may be used to finance an eligible target community's
proportionate share of a larger energy project.
Each grant applicant must demonstrate the economic and technical
feasibility of its proposed project. Activities or equipment that would
commonly be considered as research and development activities, or
commercial demonstration projects for new energy technologies will not
be considered as technologically feasible projects and would, thus, be
ineligible grant purposes. However, grant funds may be used for
projects that involve the innovative use or adaptation of energy-
related technologies that have been commercially proven.
B. Eligible Communities
The grant project must benefit communities with extremely high
energy costs. The RE Act defines an extremely high energy cost
community as one in which ``the average residential expenditure for
home energy is at least 275 percent of the national average residential
expenditure for home energy'' 7 U.S.C. 918a. The benchmarks are set
based on the latest available information from the Energy Information
Administration (EIA) residential energy surveys.
The statutory requirement that community residential expenditures
for home energy exceed 275 percent of national average establishes a
very high threshold for eligibility under this program. The Agency has
calculated high energy cost benchmarks based on the most recent EIA
national average home energy expenditure data. The current benchmarks
are shown in Table 1. These benchmarks have been revised since
publication of the 2008 NOFA. New applicants must demonstrate that
proposed target communities must meet one or more high energy cost
benchmarks to qualify as an eligible beneficiary of a grant under this
program. All applications submitted after publication of this
announcement must meet these current eligibility benchmarks. Eligible
applications submitted under the January 28, 2008 and requesting
reconsideration will retain eligibility established under the prior
benchmarks. Based on available published information on residential
energy costs, the Agency anticipates that only those communities with
the highest energy costs across the country will qualify under this
congressionally-mandated standard.
The EIA's Residential Energy Consumption and Expenditure Surveys
(RECS) and reports provide the baseline national average household
energy costs that were used for establishing extremely high energy cost
community eligibility criteria for this grant program. The RECS data
base and reports provide national and regional information on
residential energy use, expenditures, and housing characteristics. EIA
published its latest available RECS home energy expenditure survey
results in 2009. These estimates of home energy usage and expenditures
are based on national surveys conducted in 2005 survey data and are
shown in Table 1 as follows:
[[Page 47760]]
Table 1--National Average Annual Household Energy Expenditures and
Extremely High Energy Cost Eligibility Benchmarks Effective for
Applications Submitted on or after August 9, 2010
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EIA 2005
national annual RUS extremely
average high energy cost
Fuel household benchmark 275% of
expenditure $ national average
per year $ per year
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Average Annual Household Expenditure
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Electricity........................ $1,123 $3,010
Natural Gas........................ 754 1,988
Fuel Oil........................... 1,518 3,921
LPG/Propane........................ 875 2,256
Total Household Energy Use......... 1,810 4,860
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RUS extremely
EIA 2005 high energy cost
Fuel (units) national average benchmark 275% of
unit cost $ per national average
unit $ per unit
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Annual Average per Unit Residential Energy Costs
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Electricity (kilowatt hours)....... $0.10 $0.264
Natural Gas (thousand cubic feet).. 11.24 30.30
Fuel Oil (gallons)................. 2.04 5.54
LPG/Propane (gallons).............. 1.92 5.10
Total Household Energy (million 19.07 51.62
Btus).............................
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Sources: Energy Information Administration, United States Department of
Energy, 2005 Residential Energy Consumption Survey--Detailed Tables,
available at: http://www.eia.doe.gov/emeu/recs/recs2005/c&e/detailed_tables2005c&e.html. The RUS benchmarks calculations include
adjustments to reflect the uncertainties inherent in EIA's statistical
methodology for estimating home energy costs. The benchmarks are set
based on the EIA's lower range estimates using the specified EIA
methods.
Extremely high energy costs in rural and remote communities
typically result from a combination of factors including high energy
consumption, high per unit energy costs, limited availability of energy
sources, extreme climate conditions, and housing characteristics. The
relative impacts of these conditions exhibit regional and seasonal
diversity. Market factors have created an additional complication in
recent years as the prices of the major commercial residential energy
sources--electricity, fuel oil, natural gas, and LPG/propane--have
fluctuated dramatically in some areas.
The applicant must demonstrate that each community in the grant
project's proposed target area exceeds one or more of these high energy
cost benchmarks to be eligible for assistance under this program.
i. High Energy Cost Benchmarks
The benchmarks measure extremely high energy costs for residential
consumers. These benchmarks were calculated using EIA's estimates of
national average residential energy expenditures per household and by
primary home energy source. The benchmarks recognize the diverse
factors that contribute to extremely high home energy costs in rural
communities. The benchmarks allow extremely high energy cost
communities several alternatives for demonstrating eligibility.
Communities may qualify based on: Total annual household energy
expenditures; Total annual expenditures for commercially-supplied
primary home energy sources, i.e., electricity, natural gas, oil, or
propane; or average annual per unit home energy costs. By providing
alternative measures for demonstrating eligibility, the benchmarks
reduce the burden on potential applicants created by the limited public
availability of comprehensive data on local community energy
consumption and expenditures.
A target community or target area will qualify as an extremely high
cost energy community if it meets one or more of the energy cost
eligibility benchmarks described below.
a. Extremely High Average Annual Household Expenditure for Home
Energy. The target area or community exceeds one or more of the
following:
Average annual residential electricity expenditure of
$3,010 per household;
Average annual residential natural gas expenditure of
$1,988 per household;
Average annual residential expenditure on fuel oil of
$3,921 per household;
Average annual residential expenditure on propane or
liquefied petroleum gas (LPG) as a primary home energy source of $2,256
per household; or
Average annual residential energy expenditure (for all
non-transportation uses) of $4,860 per household.
b. Extremely High Average per unit energy costs. The average
residential per unit cost for major commercial energy sources in the
target area or community exceeds one or more of the following:
Annual average revenues per kilowatt hour for residential
electricity customers of $0.264 per kilowatt hour (kWh);
Annual average residential natural gas price of $30.30 per
thousand cubic feet;
Annual average residential fuel oil price of $5.54 per
gallon;
Annual average residential price of propane or LPG as a
primary home energy source of $5.10 per gallon; or
Total annual average residential energy cost on a Btu
basis of $51.62 per million Btu.\1\
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\1\ Note: Btu is the abbreviation for British thermal unit, a
standard energy measure. A Btu is the quantity of heat needed to
raise the temperature of one pound of water 1 degree Fahrenheit at
or near 39.2 degrees Fahrenheit. In estimating average household per
unit energy cost on a Btu basis, the costs of different home energy
sources are converted to a standard Btu basis. The Application Guide
contains additional information on calculating per unit costs on a
Btu basis for major home energy sources.
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[[Page 47761]]
ii. Supporting Energy Cost Data
The applicant must include information that demonstrates its
eligibility under the Agency's high energy cost benchmarks for the
target communities and the target areas. The applicant must supply
documentation or references for its sources for actual or estimated
home energy expenditures or equivalent measures to support eligibility.
Generally, the applicant will be expected to use historical residential
energy cost or expenditure information for the local energy provider
serving the target community or target area to determine eligibility.
Other potential sources of home energy related information include
Federal and State agencies, local community energy providers such as
electric and natural gas utilities and fuel dealers, and commercial
publications. The Application Guide includes a list of EIA resources on
residential energy consumption and costs that may be of assistance.
The grant applicant must establish eligibility for each community
in the project's target area. To determine eligibility, the applicant
must identify each community included in whole or in part within the
target areas and provide supporting actual or estimated energy
expenditure data for each community. The smallest area that may be
designated as a target area is a 2000 Census block. This minimum size
is necessary to enable a determination of population size.
Potential applicants can compare the benchmark criteria to
available information about local energy use and costs to determine
their eligibility. Applicants should demonstrate their eligibility
using historical energy use and cost information. Where such
information is unavailable or does not adequately reflect the actual
costs of supporting average home energy use in a local community, the
Agency will consider estimated commercial energy costs. The Application
Guide includes examples of circumstances where estimated energy costs
are used.
EIA does not collect or maintain data on home energy expenditures
in sufficient detail to identify specific rural localities as extremely
high energy cost communities. Therefore, grant applicants will have to
provide information on local community energy costs from other sources
to support their applications.
In many instances, historical community energy cost information can
be obtained from a variety of public sources or from local utilities
and other energy providers. For example, EIA publishes monthly and
annual reports of residential prices by State and by service area for
electric utilities and larger natural gas distribution companies.
Average residential fuel oil and propane prices are reported regionally
and for major cities by government and private publications. Many State
agencies also compile and publish information on residential energy
costs to support State programs.
iii. Use of Estimated Home Energy Costs
Where historical community energy cost data are incomplete or
lacking or where community-wide data do not accurately reflect the
costs of providing home energy services in the target area, the
applicant may substitute estimates based on engineering standards. The
estimates should use available community, local, or regional data on
energy expenditures, consumption, housing characteristics and
population. Estimates are also appropriate where the target area does
not presently have centralized commercial energy services at a level
that is comparable to other residential customers in the State or
region. For example, local commercial energy cost information may not
be available where the target area is without local electric service
because of the high costs of connection. Engineering cost estimates
reflecting the incremental costs of extending service could reasonably
be used to establish eligibility for areas without grid-connected
electric service. Estimates also may be appropriate where historical
energy costs do not reflect the costs of providing a necessary upgrade
or replacement of energy infrastructure to maintain or extend service
that would raise costs above one or more of benchmarks.
Information to support high energy cost eligibility is subject to
independent review by the Agency. Applications that contain information
that is not reasonably based on credible sources of information and
sound estimates will be rejected. Where appropriate, the Agency may
consult standard sources to confirm the reasonableness of information
and estimates provided by applicants in determining eligibility,
technical feasibility, and adequacy of proposed budget estimates.
C. Coordination With State Rural Development Initiatives
USDA encourages the coordination of grant projects under this
program with State development initiatives. There is no requirement
that the grant proposal receive the concurrence or approval of State
officials as a condition of eligibility under this program. The Agency
will, however, award additional points to proposals that are
coordinated with and support rural development initiatives within a
State. The applicant should describe how the proposed project will
support State rural development initiatives and provide documentation
evidencing any project relationship to State initiatives.
If an applicant is an entity directly involved in rural development
efforts, such as a State, local, or Tribal rural development agency,
the applicant may qualify for additional points by describing how its
proposed project supports its efforts.
D. Limitations on Grant Awards
a. Statutory Limitation on Planning and Administrative Expenses
Section 19 of the RE Act provides that no more than 4 percent of
the grant funds for any project may be used for the planning and
administrative expenses of the grantee that are not directly related to
the grant project.
ii. Ineligible Grant Purposes
Grant funds cannot be used for: Preparation of the grant
application, fuel purchases, routine maintenance or other operating
costs, and purchase of equipment, structures, or real estate not
directly associated with provision of residential energy services. In
general, grant funds may not be used to support projects that primarily
benefit areas outside of eligible target communities. However, grant
funds may be used to finance an eligible target community's
proportionate share of a larger energy project.
Consistent with USDA policy and program regulations, grant funds
awarded under this program generally cannot be used to replace other
USDA assistance or to refinance or repay outstanding loans under the RE
Act. Grant funds may, however, be used in combination with other USDA
assistance programs including electric loans. Grants may be applied
toward grantee contributions under other USDA programs depending on the
terms of those programs. For example, an applicant may propose to use
grant funds to offset the costs of electric system improvements in
extremely high cost areas by increasing the utility's contribution for
line extensions or system expansions to its distribution system
financed in whole or part by an electric loan under the RE Act. An
[[Page 47762]]
applicant may propose to finance a portion of an energy project for an
extremely high energy cost community through this grant program and
secure the remaining project costs through a loan or loan guarantee or
grant from the Agency or other sources.
iii. Maximum and Minimum Awards
The maximum amount of grant assistance that will be considered for
funding per grant application under this notice is $5,000,000. The
minimum amount of assistance for a competitive grant application under
this program is $75,000.
IV. Application and Submission Information
All applications must be prepared and submitted in compliance with
this NOFA and the Application Guide. The Application Guide contains
additional information on the grant program, sources of information for
use in preparing applications, examples of eligible projects, and
copies of the required application forms.
1. Address To Request an Application Package
Applications materials and the Application Guide are available for
download through http://www.Grants.gov (under CFDA No. 10.859) and on
the Electric Programs Web site at: http://www.usda.gov/rus/electric/hecgp/index.htm.
Application packages, including required forms, may be also be
requested from: Karen Larsen, Management Analyst, United States
Department of Agriculture, Rural Development Utilities Programs,
Electric Program, 1400 Independence Avenue, SW., STOP 1560, Room 5165
South Building, Washington, DC 20250-1560. Telephone 202-720-9545, Fax
202-690-0717, e-mail [email protected].
2. Content and Form of Application Submission
There are different application requirements for first-time
applicants and for prior applicants requesting reconsideration. First-
time applicants are those that did not submit a timely and complete
application or request for reconsideration in response to the January
28, 2008 (73 FR 4778) NOFA. First-time applicants should follow the
directions in this notice and the Application Guide in preparing their
applications and narrative proposals. The completed application package
should be assembled in the order specified with all pages numbered
sequentially or by section. If you submitted an application in 2003,
2004, 2005, or 2007, but did not submit a request for reconsideration
in 2008, you must submit a complete new application package meeting
current eligibility and content requirements. Prior 2008 applicants
should follow the special instructions for reconsideration of their
applications and submit a revised Standard Form 424 (SF-424), a letter
requesting reconsideration, and any supplemental material by the
deadline.
A. Application Contents for New Applications
First-time applicants must submit the following information for the
application to be complete and considered for funding:
i. Part A. A Completed SF 424, ``Application for Federal
Assistance.'' This form must be signed by a person authorized to submit
the proposal on behalf of the applicant. Note: SF 424 has recently been
revised to include new required data elements, including a DUNS number.
You must submit the revised form. Copies of this form are available in
the application package available on line through the Agency Web site
or through Grants.gov, or by request from the Agency contact listed
above.
ii. Part B. Grant Proposal. The grant proposal is a narrative
description prepared by the applicant that establishes the applicant's
eligibility, identifies the eligible extremely high energy cost
communities to be served by the grant, and describes the proposed grant
project, the potential benefits of the project, and a proposed budget.
The grant proposal should contain the following sections in the order
indicated.
1. Executive Summary. The Executive Summary is a one to two page
narrative summary that: (a) Identifies the applicant, project title,
and the key contact person with telephone and fax numbers, mailing
address and e-mail address; (b) specifies the amount of grant funds
requested; (c) provides a brief description of the proposed project
including the eligible rural communities and residents to be served,
activities and facilities to be financed, and how the grant project
will offset or reduce the target community's extremely high energy
costs; and (d) identifies the associated State rural development
initiative, if any, that the project supports. The Executive Summary
should also indicate whether the applicant is claiming additional
points under any of the criteria designated as USDA priorities under
this NOFA.
2. Table of Contents. The application package must include a table
of contents immediately after the Executive Summary with page numbers
for all required sections, forms, and appendices.
3. Applicant Eligibility. This section includes a narrative
statement that identifies the applicant and supporting evidence
establishing that the applicant has or will have the legal authority to
enter into a financial assistance relationship with the Federal
Government. Examples of supporting evidence of applicant's legal
existence and eligibility include: A reference to or copy of the
relevant statute, regulation, executive order, or legal opinion
authorizing a State, local, or Tribal government program, articles of
incorporation or certificates of incorporation for corporate
applicants, partnership or trust agreements, board resolutions.
Applicants must also be free of any debarment or other restriction on
their ability to contract with the Federal Government.
4. Community Eligibility. This section provides a narrative
description of the community or communities to be served by the grant
and supporting information to establish eligibility. The narrative must
show that the proposed grant project's target area or areas are located
in one or more communities where the average residential energy costs
exceed one or more of the benchmark criteria for extremely high energy
costs as described in this NOFA. The narrative should clearly identify
the location and population of the areas to be aided by the grant
project and their energy costs and the population of the local
government division in which they are located. Local energy providers
and sources of high energy cost data and estimates should be clearly
identified. Neither the applicant nor the project must be physically
located in the extremely high energy cost community, but the funded
project must serve an eligible community.
The population estimates should be based on the results of the 2000
Census available from the U.S. Census Bureau. Additional information
and exhibits supporting eligibility may include maps, summary tables,
and references to statistical information from the U.S. Census, the
Energy Information Administration, other Federal and State agencies, or
private sources. The Application Guide includes additional information
and sources that the applicant may find useful in establishing
community eligibility.
5. Coordination with State Rural Development Initiatives. In this
section the applicant must describe how the
[[Page 47763]]
proposed grant is coordinated with and supports any rural development
efforts. The applicant should provide supporting references or
documentation of any relationship or contribution to State rural
development initiatives.
6. Project Overview. This section includes the applicant's
narrative overview of its proposed project. The narrative must address
the following:
a. Project Design: This section must provide a narrative
description of the project including a proposed scope of work
identifying major tasks and proposed schedules for task completion, a
detailed description of the equipment, facilities and associated
activities to be financed with grant funds, the location of the
eligible extremely high energy cost communities to be served, and an
estimate of the overall duration of the project. The Project Design
description should be sufficiently detailed to support a finding of
technical feasibility. Proposed projects involving construction,
repair, replacement, or improvement of electric generation,
transmission, and distribution facilities must generally be consistent
with the standards and requirements for projects financed with loans
and loan guarantees under the RE Act as set forth in the Agency's
Electric Programs Regulations and Bulletins and may reference these
requirements.
b. Project Management: This section must provide a narrative
describing the applicant's capabilities and project management plans.
The description should address the applicant's organizational
structure, method of funding, legal authority, key personnel, project
management experience, financial management systems, staff resources,
the goals and objectives of the program or business, and any related
services provided to the project beneficiaries. A current financial
statement and other supporting documentation may be referenced here and
included under the Supplementary Material section. If the applicant
proposes to use affiliated entities, contractors, or subcontractors to
provide services funded under the grant, the applicant must describe
the identities, relationship, qualifications, and experience of these
affiliated entities. The experience and capabilities of these entities
will be reviewed by the rating panel. If the applicant proposes to
secure equipment, design, construction, or other services from non-
affiliated entities, the applicant must briefly describe how it plans
to procure and/or contract for such equipment or services. The
applicant should provide information that will support a finding that
the combination of management team's experience, financial management
capabilities, resources and project structure will enable successful
completion of the project. Applicants are encouraged to review the
financial management requirements for Federal grantees in 7 CFR part
1709 and USDA financial assistance regulations at 7 CFR parts 3015,
3016, 3017, 3018, 3019, and 3052, as applicable, and to address their
ability to comply with these requirements in their applications.
c. Regulatory and other approvals: The applicant must identify any
other regulatory or other approvals required by other Federal, State,
local, or Tribal agencies, or by private entities as a condition of
financing that are necessary to carry out the proposed grant project
and its estimated schedule for obtaining the necessary approvals.
d. Benefits of the proposed project. The applicant should describe
how the proposed project would benefit the target area and eligible
communities. The description must specifically address how the project
will improve energy generation, transmission, or distribution
facilities serving the target area. The applicant should clearly
identify how the project addresses the energy needs of the community
and include appropriate measures of project success such as, for
example, expected reductions in household or community energy costs,
avoided cost increases, enhanced reliability, or economic or social
benefits from improvements in energy services available to the target
community. The applicant should include quantitative estimates of cost
or energy savings and other benefits. The applicant should provide
documentation or references to support its statements about cost-
effectiveness savings and improved services. The applicant should also
describe how it plans to measure and monitor the effectiveness of the
program in delivering its projected benefits.
7. Proposed Project Budget. The applicant must submit a proposed
budget for the grant program on SF 424A, ``Budget Information--Non-
Construction Programs'' or SF-424C, ``Standard Form for Budget
Information-Construction Programs,'' as applicable. All applicants that
submit applications through Grants.gov must use SF-424A. The applicant
should supplement the budget summary form with more detailed
information describing the basis for cost estimates. The detailed
budget estimate should itemize and explain major proposed project cost
components such as, but not limited to, the expected costs of design
and engineering and other professional services, personnel costs
(salaries/wages and fringe benefits), equipment, materials, property
acquisition, travel (if any), and other direct costs, and indirect
costs, if any. The budget must document that planned administrative and
other expenses of the project sponsor that are not directly related to
performance of the grant will not total more than 4 percent of grant
funds. The applicant must also identify the source and amount of any
other Federal or non-Federal contributions of funds or services that
will be used to support the proposed project. This program does not
require supplemental or matching funds for eligibility; however, the
Agency will award additional rating points for programs that include a
match of other funds or like-kind contributions to support the project.
8. Supplementary Material. The applicant may append any additional
information relevant to the proposal or which may qualify the
application for extra points under the evaluation criteria described in
this NOFA.
iii. Part C. Additional Required Forms and Certifications. In order
to establish compliance with other Federal requirements for financial
assistance, the applicant must execute and submit with the initial
application the following forms and certifications:
SF 424B, ``Assurances--Non-Construction Programs'' or SF
424D, ``Assurances--Construction Programs'' (as applicable). All
applicants applying through Grants.gov must use form SF 424B.
SF LLL, ``Disclosure of Lobbying Activities.''
``Certification Regarding Debarment, Suspension and Other
Responsibility Matter--Primary Covered Transactions'' as required under
7 CFR part 3017, Appendix A. Certifications for individuals,
corporations, nonprofit entities, Indian Tribes, partnerships.
Environmental Profile. The Agency environmental profile
template included in the Application Guide solicits information about
project characteristics and site-specific conditions that may involve
environmental, historic preservation, and other resources. The profile
will be used by the Agency's environmental staff to identify selected
projects that may require additional environmental reviews,
assessments, or environmental impact statements before a final grant
award may be approved. A copy of the environmental profile and
instructions for completion are included in the Application Guide and
may be downloaded from the Agency Web site or Grants.gov.
[[Page 47764]]
B. Special Requirements for Applicants Requesting Reconsideration of an
Application Submitted in 2008
Applicants that submitted applications in response to the NOFA
published on January 28, 2008 (73 FR 4,778) and that later received a
letter from the RUS with their scores and advising them that the
application was determined to be eligible and complete, may request
reconsideration of their 2008 applications in this round of competitive
funding. To request reconsideration, the applicant must submit a new
original Standard Form SF 424, including mandatory data elements (DUNS
number, fax number, and e-mail address) along with a brief signed
letter requesting reconsideration and identifying any additional
information that they wish to be considered by the rating panel in
reviewing their application along with supporting documentation.
Community eligibility for these prior applications was determined under
the eligibility benchmarks for the 2008 NOFA. These accepted and
complete applications will be grandfathered under this NOFA.
The required application package for reconsideration will consist
of the original signed SF 424, the request for reconsideration, and any
additional supporting documents, plus the original application package
submitted to the RUS in 2008. The Agency has maintained these prior
applications on file and will add the newly submitted material to the
existing application package for review by the rating panel. You do not
need to send a copy of the 2008 application package. Because this
abbreviated application package differs from the general application
package for first time applicants available through Grants.gov,
applicants requesting reconsideration should submit their requests
directly to the RUS by the application deadline and not through
Grants.gov. Applicants that submitted an application in 2008 also have
the option of submitting an entirely new complete application package
for their project under the requirements of this NOFA.
3. Additional Information Requests
In addition to the information required to be submitted in the
application package, the RUS may request that successful grant
applicants provide additional information, analyses, forms and
certifications as a condition of pre-award clearance, including any
environmental reviews or other reviews or certifications required under
USDA and Government-wide assistance regulations. The RUS will advise
the applicant in writing of any additional information required.
4. Submitting the Application
Applicants that are submitting paper application packages must
submit one original application package that includes original
signatures on all required forms and certifications and two copies.
Applications should be submitted on 8 \1/2\ by 11 inch white paper.
Supplemental materials, such as maps, charts, plans, and photographs
may exceed this size requirement.
A completed paper application package must contain all required
parts in the order indicated in the above section on ``Content and Form
of Application Submission.'' The application package should be
paginated either sequentially or by section. Applicants are requested
to provide the application package in single-sided format for ease of
copying.
Applicants that are submitting application packages electronically
through the Federal grants portal Grants.gov (http://www.Grants.gov)
must follow the application requirements and procedures and submit all
the forms in the application package provided there. The Grants.gov Web
site contains full instructions on all required registration,
passwords, credentialing and software required to submit applications
electronically. Grants.gov has streamlined the registration and
credentialing process and now requires separate application processes
for individuals and organizations. Individual applicants, including
individuals applying on behalf of an organization, should follow the
special directions for individuals on the Grants.gov Web site.
Organizational applicants and sole proprietorships should follow the
instructions for organizations.
Organizational applicants are advised that completion of the
requirements for registration with Grants.gov, with the Central
Contractor Registry, and e-Authentication required under Grants.gov may
take a week or more and may be delayed. Accordingly, the Agency
strongly recommends that you complete your organization's registration
with Grants.gov well in advance of the deadline for submitting
applications.
USDA encourages both individual and organizational applicants who
wish to apply through Grants.gov to submit their applications well in
advance of the deadlines. Early submittal will give you time to resolve
any system problems or technical difficulties with an electronic
application through the customer support resources available at the
Grants.gov Web site while preserving the option of submitting a timely
paper application if any difficulties cannot be resolved.
5. Disclosure of Information
All material submitted by the applicant may be made available to
the public in accordance with the Freedom of Information Act (5 U.S.C.
552) and USDA's implementing regulations at 7 CFR part 1.
6. Submission Dates and Times
Applications must be postmarked or hand delivered to the RUS or
posted to Grants.gov by September 8, 2010. The Agency will begin
accepting applications on the date of publication of this NOFA. The
Agency will accept for review all applications postmarked or delivered
to us by this deadline. Late applications will not be considered and
will be returned to the applicant.
For the purposes of determining the timeliness of an application
the RUS will accept the following as a valid postmarks: the date
stamped by the United States Postal Service on the outside of the
package containing the application delivered by U.S. Mail; the date the
package was received by a commercial delivery service as evidenced by
the delivery label; the date received via hand delivery to the RUS
headquarters; and the date an electronic application was posted for
submission to Grants.gov.
7. Intergovernmental Review
This program is not subject to the requirements of Executive Order
12372, ``Intergovernmental Review of Federal Programs,'' as implemented
under USDA's regulations at 7 CFR part 3015.
8. Funding Restrictions
Section 19 of the RE Act provides that no more than 4 percent of
the grant funds may be used for the planning and administrative
expenses of the grantee not directly related to the grant project.
9. Other Submission Requirements
Applicants that are submitting paper applications must submit one
original application package that includes original signatures on all
required forms and certifications and two copies. Applications should
be single-sided and submitted on 8\1/2\ by 11-inch white paper.
Supplemental materials, such as maps, charts, plans, and photographs
may exceed this size requirement.
A completed application for first-time applicants must contain all
required parts in the order indicated in the above section on ``Content
and Form of Application Submission.'' The
[[Page 47765]]
application package should be paginated either sequentially or by
section. Applicants seeking reconsideration should follow the special
instructions above.
The completed paper application package and two copies must be
delivered to the RUS headquarters in Washington, DC using United States
Mail, overnight delivery service, or by hand to the following address:
Rural Utilities Service, Electric Programs, United States Department of
Agriculture, 1400 Independence Avenue, SW., STOP 1560, Room 5165 South
Building, Washington, DC 20250-1560. Applications should be marked
``Attention: High Energy Cost Community Grant Program.''
Applicants are advised that regular mail deliveries to Federal
Agencies, especially of oversized packages and envelopes, continue to
be delayed because of increased security screening requirements.
Applicants may wish to consider using Express Mail or a commercial
overnight delivery service instead of regular mail. Applicants wishing
to hand deliver or use courier services for delivery should contact the
Agency representative in advance to arrange for building access. The
RUS advises applicants that because of intensified security procedures
at government facilities that any electronic media included in an
application package may be damaged during security screening. If an
applicant wishes to submit such materials, they should contact the
agency representative for additional information.
The RUS will accept electronic applications through the Federal Web
portal at http://www.Grants.gov. Applicants wishing to submit
electronic applications through Grants.gov must follow the application
procedures and submission requirements detailed on that Web site at
http://www.Grants.gov. Applicants that file through Grants.gov should
receive electronic confirmation from Grants.gov that their applications
have been received within 48 hours of submitting the application.
Grants.gov will send a second electronic message that the application
has either been successfully accepted by the system for transmission to
the grantor agency OR has been rejected due to errors. After the grant
application deadline has passed, USDA will send an electronic
confirmation acknowledging that the application has been received by
the RUS from Grants.gov. Grants.gov will not accept applications for
filing after the deadline has passed. The Agency will not accept
applications directly over the Internet, by e-mail, or fax.
Applicants should be aware that Grants.gov requires that applicants
complete several preliminary registrations and e-authentication
requirements before being allowed to submit applications
electronically. Applicants should consult the Grants.gov Web site and
allow ample time to complete the steps required for registration before
submitting their applications. Applicants may download application
materials and complete forms online through Grants.gov without
completing the registration requirements. Application materials
prepared online may be printed and submitted in paper to the Agency as
detailed above.
10. Multiple Applications
Eligible applicants may submit only one application per project.
Multiple tasks and localities may be included in a single proposed
grant project. No more than $5 million in grant funds will be awarded
per project application. Applicants may, however, submit applications
for more than one project.
V. Application Review Information
All applications for grants must be delivered to the Agency at the
address listed above or postmarked no later than September 8, 2010 to
be eligible. After the deadline has passed, the Agency will review each
timely submitted application to determine whether it is complete and
meets all of the eligibility requirements described in this NOFA.
After the application closing date, the Agency will not consider
any unsolicited information from the applicant. The RUS may contact the
applicant for additional information or to clarify statements in the
application required to establish applicant or community eligibility
and completeness. Only applications that are complete and meet the
eligibility criteria will be considered. The RUS will not accept or
solicit any additional information relating to the technical merits
and/or economic feasibility of the grant proposal after the application
closing date.
If the RUS determines that an application package was not delivered
to the Agency, or postmarked on or before the deadline of September 8,
2010, the application will be rejected as untimely and returned to the
applicant.
After review, the RUS will reject any application package that it
determines is incomplete or that does not demonstrate that the
applicant, community or project is eligible under the requirements of
this NOFA and program regulations. The Assistant Administrator,
Electric Programs will notify the applicant of the rejection in writing
and provide a brief explanation of the reasons for rejection.
Applicants may appeal the rejection pursuant to program regulations
on appeals at 7 CFR 1709.6. The appeal must be made in writing to the
Agency Administrator within 10 days after the applicant is notified of
the determination to reject the application. The appeal must state the
basis for the appeal. Under 7 CFR 1709.6, appeals must be directed to
the Administrator, Rural Utilities Service, United States Department of
Agriculture, 1400 Independence Ave., SW., STOP 1500, Washington, DC
20250-1500. The Administrator will review the appeal to determine
whether to sustain, reverse, or modify the original determination by
the Assistant Administrator. The Administrator's decision shall be
final. A written copy of the Administrator's decision will be furnished
promptly to the applicant.
The RUS may establish one or more rating panels to review and rate
the eligible grant applications. These panels may include persons not
currently employed by USDA.
The panel will evaluate and rate all complete applications that
meet the eligibility requirements using the selection criteria and
weights described in this NOFA. As part of the proposal review and
ranking process, panel members may make comments and recommendations
for appropriate conditions on grant awards to promote successful
performance of the grant or to assure compliance with other Federal
requirements. The decision to include panel recommendations on grant
conditions in any grant award will be at the sole discretion of the RUS
Administrator.
All applications will be scored and ranked according to the
evaluation criteria and weightings described in this Notice. The
evaluation criteria and weights in this NOFA differ from those used in
prior NOFAs. For this reason, the ratings panel will review and revise
scores of any prior applications that are being reconsidered according
to the new criteria. The rating panel may revise the score upward based
on any updated information submitted by the applicant. The RUS will use
the ratings and recommendations of the panel to rank applicants against
other applicants. All applicants will be ranked according to their
scores in this round. The rankings and recommendations will then be
forwarded to the Administrator for final review and selection.
Decisions on grant awards will be made by the RUS Administrator
based on the application, and the rankings and recommendations of the
rating panel.
[[Page 47766]]
The Administrator will fund grant requests in rank order to the extent
of available funds. If sufficient funds are not available to fund the
next ranked project, the Administrator may, in his sole discretion,
offer a partial award to the next project, or skip over that project to
the next ranking project that can be supported with available funding.
The Administrator may in his sole discretion, make additional awards to
unfunded applications submitted under this NOFA in rank order.
1. Criteria
The RUS will use the selection criteria described in this NOFA to
evaluate and rate applications and will award points up to the maximum
number indicated under each criterion. Applicants should carefully read
the information on the rating criteria in this NOFA and the Application
Guide and address all criteria. The maximum number of points that can
be awarded is 100 points. The RUS will award up to 65 points for
project design and technical merit criteria and up to 35 points based
on priority criteria for project or community characteristics that
support USDA Rural Development and RUS program priorities.
A. Project Design and Technical Merit Criteria
Reviewers will consider the soundness of the applicant's approach,
the technical feasibility of the project, the adequacy of financial and
other resources, the competence and experience of the applicant and its
team, the project goals and objectives, and community needs and
benefits. A total of 65 points may be awarded under these criteria.
1. Comprehensiveness and feasibility of approach. (Up to 30 points)
Raters will assess the technical and economic feasibility of the
project and how well its goals and objectives address the challenges of
the extremely high energy cost community. The panel will review the
proposed design, construction, equipment, and materials for the
community energy facilities in establishing technical feasibility.
Reviewers may propose additional conditions on the grant award to
assure that the project is technically sound. Reviewers will consider
the adequacy of the applicant's budget and resources to carry out the
project as proposed and how the applicant proposes to manage available
resources such as other grants, program income, and any other financing
sources to maintain and operate a financially viable project once the
grant period has ended. Reviewers may give higher scores to projects
that are substantially ready to proceed with construction or
implementation than to those that are early in the project development
process.
2. Demonstrated experience. (Up to 10 points) Reviewers will
consider whether the applicant and its project team have demonstrated
experience in successfully administering and carrying out projects that
are comparable to that proposed in the grant application. The RUS
supports and encourages emerging organizations that desire to develop
the internal capacity to improve energy services in rural communities.
In evaluating the capabilities of entities without extensive experience
in carrying out such projects, the Agency will consider the experience
of the project team and the effectiveness of the program design in
compensating for lack of extensive experience.
3. Community Needs. (Up to 15 points) Reviewers will consider the
applicant's identification and documentation of eligible communities,
their populations, and assessment of community energy needs to be
addressed by the grant project. Information on the severity of physical
and economic challenges affecting eligible communities will be
considered. Reviewers will weigh: (1) the applicant's analysis of
community energy challenges and (2) why the applicant's proposal
presents a greater need for Federal assistance than other competing
applications. In assessing the applicant's demonstration of community
needs, the rating panel will consider information in the narrative
proposal addressing:
(a) the burden placed on the community and individual households
by extremely high energy costs as evidenced by such quantitative
measures as, for example, total energy expenditures, per unit energy
costs, energy cost intensity for occupied space, or energy costs as
a share of average household income, and persistence of extremely
high energy costs compared to national or statewide averages.
(b) the hardships created by limited access to reliable and
affordable energy services;
(c) the availability of other resources to support or supplement
the proposed grant funding: and
(d) indications of community support for this solution to their
energy challenges.
4. Project Evaluation Methods. (Up to 5 points) Reviewers will
consider the applicant's plan to evaluate and report on the success and
cost-effectiveness of financed activities and whether the results
obtained will contribute to program improvements for the applicant or
for other entities interested in similar programs.
5. Coordination with State Rural Development Initiatives. (Up to 5
points) Raters will assess how effectively the proposed project is
coordinated with State rural development initiatives, if any, and is
consistent with and supports these efforts. [Note: The term ``State
rural development initiatives'' refers to State or Tribal programs and
not to USDA Rural Development programs.] The RUS will consider the
documentation submitted for coordination efforts, community support,
and State or local government recommendations. Applicants should
identify the extent to which the project is dependent on or tied to
other rural development initiatives, funding, and approvals. Applicants
are advised that they should address this criterion explicitly even if
only to report that the project is not coordinated with or supporting a
State rural development initiative. Failure to address this criterion
will result in zero points awarded.
B. Priority Criteria
In addition to the points awarded for project design and technical
merit, all proposals will be reviewed and awarded additional points
based on certain characteristics of the project or the target
community. USDA Rural Development Mission Area policies generally
encourage agencies to give priority in their programs to rural areas of
greatest need and to support other Federal policy initiatives. In
furtherance of these policies, the RUS will award additional points for
the priorities identified in this notice. The priority criteria and
point scores used in this NOFA are consistent with the program
regulations in 7 CFR part 1709. The Agency will give priority
consideration to smaller rural and remote communities, areas suffering
significant economic hardship, areas with inadequate community energy
services, and areas where the condition of community energy facilities
(or absence thereof) presents an imminent hazard to public health or
safety. Priority points will also be awarded for proposals that include
cost sharing. A maximum of 35 total points may be awarded under these
priority criteria.
1. Economic Hardship. (Up to 15 points) The community experiences
one or more economic hardship conditions that impair the ability of the
community and/or its residents to provide basic energy services or to
reduce or limit the costs of these services. Economic hardship will be
assessed using either the objective measure of county median income
under Option A below or subjectively under Option B based on the
applicant's description of the community's economic hardships and
[[Page 47767]]
supporting materials. Applicants may elect either measure, but not
both.
a. Option A. Economically Distressed Communities (up to 15 points).
The target community is an economically distressed county or Indian
reservation where the median household income is significantly below
the State average. Points will be awarded based on the county
percentage of State median household income (or reservation percentage
of State median household income in the case of Federally recognized
Indian reservations) according to the following:
(1) Less than 70 percent of the State median household income, 15
points;
(2) 70 to 80 percent of the State median household income, 12
points;
(3) 80 to 90 percent of the State median household income, 10
points;
(4) 90 to 95 percent of the State median household income, 5
points; or
(5) Over 95 percent of the State median household income, 0 points
Information on State and county median income is available online
from the USDA Economic Research Service at http://www.ers.usda.gov/data/unemployment/. Information on Indian reservations is available
through the U.S. Census at http://www.census.gov.
Note on Alternative Economic Data for Eligible Insular Areas:
RUS recognizes that comparable economic and household income
information may not be available for eligible areas that are not
States. Applicants from these areas should provide any public
information that is readily available on territorial or national
median household income and local community economic characteristics
and other indication of economic challenge posed by extremely high
energy costs. Applications from these areas will be scored under
Option B ``Other Economic Hardship.''
b. Option B. Other Economic Hardship (up to 15 points). The
community suffers from other conditions creating a severe economic
hardship that is adequately described and documented by the applicant.
Examples include but are not limited to natural disasters, financially
distressed local industry, and loss of major local employer, persistent
poverty, outmigration, or other conditions adversely affecting the
local economy, or contributing to unserved or underserved energy
infrastructure needs that affect the economic health of the community.
Applications from eligible areas that are not States will be scored
under this alternative using information provided in the Application.
The rating panel may assign points under this criterion, in lieu of
awarding points based on the percentage of median household income
2. Rurality. (Up to 14 points) Consistent with the USDA Rural
Development policy to target resources to rural communities with
significant needs and recognizing that smaller and remote communities
are often comparatively disadvantaged in seeking assistance, reviewers
will award additional points based on the rurality (as measured by
population) of the target communities to be served with grant funds
under one of two options below.
a. Option A. Applications from the Fifty States, Puerto Rico, and
the Virgin Islands. Applications from any one of the fifty States,
Puerto Rico, or the U.S. Virgin Islands will be scored based on the
population of the largest incorporated cities, towns, or villages, or
census designated places included within the grant's proposed target
area. Points will be awarded on the population of the largest target
community within the proposed target area as follows:
(A) 2,500 or less, 14 points;
(B) Between 2,501 and 5,000, inclusive, 12 points;
(C) Between 5,001 and 10,000, inclusive, 8 points;
(D) Between 10,001 and 15,000, inclusive, 5 points;
(E) Between 15, 001 and 20,000, inclusive, 2 points; and
(F) Above 20,000, 0 points.
Applicants must use the latest available population figures from
Census 2000 available at http://www.census.gov/main/www/cen2000.html
for every incorporated city, town, or village, or Census designated
place included in the target area.
b. Option B. Alternative Rurality Scoring for Applications from
Pacific Insular Areas. The priority scoring criteria are intended to
carry out Rural Development policy to give priority to areas most
challenged by extremely high energy costs and those without access to
substantial alternative economic and institutional resources to address
these challenges, particularly rural, remote, and substantially-
underserved areas. The original priority scoring criteria were
established using Census data for population and economic
characteristics as proxy measures for rurality, remoteness, and
economic challenges. As the program has been implemented, it became
evident that comparable U.S. Census population information is often not
easily available or unavailable for communities in Pacific insular
areas. Moreover, reliance on population as proxy for remoteness and the
difficulties in addressing energy challenges did not adequately capture
the impacts of vast distances of open ocean separating these insular
areas. After consideration, the RUS has decided to adopt an alternative
for scoring eligible applications from Pacific insular areas.
Accordingly, effective with this NOFA, the RUS will assign a rurality
score of ``14'' to applications from eligible insular areas in the
Pacific. This policy will place these applications on an equal footing
with competing applications from other rural and remote areas.
3. Unserved Energy Needs (2 points) Consistent with the purposes of
the RE Act, projects that meet unserved or underserved energy needs
will be eligible for 2 points. Examples of proposals that may qualify
under this priority include projects that extend or improve electric or
other energy services to communities and customers that do not have
reliable centralized or commercial service or where many homes remain
without such service because the costs are unaffordable.
4. Imminent hazard (2 points) If the grant proposal involves a
project to correct a condition posing an imminent hazard to public
safety, welfare, the environment, or to a critical community or
residential energy facility, raters may award 2 points. Examples
include community energy facilities in immediate danger of failure
because of deteriorated condition, capacity limitations, damage from
natural disasters or accidents, or other conditions where impending
failure of existing facilities or absence of energy facilities creates
a substantial threat to public health or safety, or to the environment.
5. Cost Sharing (2 points) This grant program does not require any
cost contribution. In addition to their assessment of the economic
feasibility and sustainability of the project under the project
evaluation factors above, raters may award 2 points for cost sharing.
These points will be awarded when the proposal documents supplemental
contributions of funds, property, equipment, services, or other in kind
contributions for the project evidencing the applicant's and/or
community's commitment to the project that taken together exceed 10
percent of the total project costs. The applicant must be able to
supply written confirmation of the availability of the offered cost
share on Agency request or the points will be disallowed. The applicant
must specifically request additional points for cost sharing.
[[Page 47768]]
2. Review and Selection Process
A. Scoring and Ranking of Applications
Following the evaluation and rating of individual applications
under the above criteria, the rating panel will rank the applications
in numerical order according to their total scores. The scored and
ranked applications and the raters' comments will then be forwarded to
the Administrator for review and selection of grant awards.
B. Selection of Grant Awards and Notification of Applicants
The RUS Administrator will review the rankings and recommendations
of the applications provided by the rating panel for consistency with
the requirements of this NOFA. The Administrator may return any
application to the rating panel with written instruction for
reconsideration if, in his sole discretion, he finds that the scoring
of an application is inconsistent with this NOFA and the directions
provided to the rating panel.
Following any adjustments to the project rankings as a result of
reconsideration, the Administrator will select projects for funding in
rank order. If funds remain after funding the highest ranking
application, the Agency may fund all or part of the next highest
ranking application. The RUS will advise an applicant if it cannot
fully fund a grant request and ask whether the applicant will accept a
reduced award.
The Administrator may decide based on the recommendations of the
rating panel or in his sole discretion that a grant award may be made
fully or partially contingent upon the applicant satisfying certain
conditions or providing additional information and analyses. For
example, the Agency may defer approving a final award to a selected
project--such as projects requiring more extensive environmental review
and mitigation, preparation of detailed site specific engineering
studies and designs, or requiring local permitting, or availability of
supplemental financing--until any additional conditions are satisfied.
In the event that a selected applicant fails to comply with the
additional conditions within the time set by the Agency, the selection
will be vacated and the next ranking project will be considered.
If a selected applicant turns down a grant award offer, or fails to
conclude a grant agreement acceptable to the RUS, or to provide
required information requested by the Agency within the time period
established in the notification of selection for grant award, the
Administrator may select for funding the next highest ranking
application submitted in response to this NOFA. If sufficient funds are
not available to fund the next ranked project, the Administrator may in
his sole discretion, offer a partial award to the next project, or skip
over that project to the next ranking project that can be supported
with available funding. The Administrator may in his sole discretion,
make additional awards to unfunded applications submitted under this
NOFA in rank order as provided above.
The RUS will notify each applicant in writing whether or not it has
been selected for an award. The RUS written notice to a successful
applicant of the amount of the grant award based on the approved
application will constitute the Agency's preliminary acceptance of a
project for an award, subject to compliance with all post-selection
requirements including but not limited to completion of any
environmental reviews and negotiation and execution of a grant
agreement satisfactory to the RUS. This preliminary acceptance does not
bind the Government to making a final grant award. Only a final grant
award and agreement executed by the Administrator will constitute a
binding obligation and commitment of Federal funds. Funds will not be
awarded or disbursed until all requirements have been satisfied and are
contingent on the continued availability of funds at the time of the
award. The RUS will advise selected applicants of additional
requirements or conditions.
C. Adjustments to Funding
The RUS reserves the right to fund less than the full amount
requested in a grant application to ensure the fair distribution of the
funds and to ensure that the purposes of a specific program are met.
The Agency will not fund any portion of a grant request that is not
eligible for funding under Federal statutory or regulatory
requirements, that does not meet the requirements of this NOFA, or that
may duplicate other RUS-funded activities, including electric loans.
Only the eligible portions of a successful grant application will be
funded.
Grant assistance cannot exceed the lower of:
(a) The qualifying percentage of eligible project costs requested
by the applicant; or
(b) The minimum amount sufficient to provide for the economic
feasibility of the project as determined by the RUS.
VI. Award Administration Information
1. Award Notices
The RUS will notify all applicants in writing whether they have
been selected for an award. Successful applicants will be advised in
writing of their selection as award finalists. Successful applicants
will be required to negotiate a grant agreement acceptable to the
Agency and complete additional grant forms and certifications required
by USDA as part of the pre-award process.
Depending on the nature of the activities proposed by the
application, the grantee may be asked to provide information and
certifications necessary for compliance with the RUS environmental
policy regulations and procedures for Electric Programs at 7 CFR part
1794. Following completion of the environmental review, selected
applicants will receive a letter of conditions establishing any
project-specific conditions to be included in the grant agreement and
asked to execute a letter of intent to meet the grant conditions or to
detail why such conditions can't be met and to propose alternatives.
Grant funds will not be advanced unless and until the applicant has
executed a grant agreement acceptable to the RUS.
The RUS will require each successful applicant to agree to the
specific terms of each grant agreement, a project budget, and other
program requirements. In cases where the Agency cannot successfully
conclude negotiations with a selected applicant or a selected applicant
fails to provide requested information within the time specified, an
award will not be made to that applicant. The selection will be revoked
and the Agency may offer an award to the next highest ranking
applicant, and proceed with negotiations with the next highest ranking
applicant, subject to the availability of funds.
2. Administrative and National Policy Requirements
A. Environmental Review and Restriction on Certain Activities
Grant awards are required to comply with 7 CFR part 1794, which
sets forth RUS regulations implementing the National Environmental
Policy Act (NEPA). Grantees must also agree to comply with any other
Federal or State environmental laws and regulations applicable to the
grant project.
If the proposed grant project involves physical development
activities or property acquisition, the applicant is generally
prohibited from acquiring, rehabilitating, converting, leasing,
[[Page 47769]]
repairing or constructing property or facilities, or committing or
expending Agency or non-Agency funds for proposed grant activities
until the RUS has completed any environmental review in accordance with
7 CFR part 1794 or determined that no environmental review is required.
Successful applicants will be advised whether additional environmental
review and requirements apply to their proposals.
B. Other Federal Requirements
Other Federal statutes and regulations apply to grant applications
and to grant awards. These include, but are not limited to,
requirements under 7 CFR part 15, subpart A--Nondiscrimination in
Federally Assisted Programs of the Department of Agriculture--
Effectuation of Title VI of the Civil Rights Act of 1964.
Certain Office of Management and Budget (OMB) circulars also apply
to USDA grant programs and must be followed by a grantee under this
program. The policies, guidance, and requirements of the following, or
their successors, may apply to the award, acceptance and use of
assistance under this program and to the remedies for noncompliance,
except when inconsistent with the provisions of the Agriculture, Rural
Development and Related Agencies Appropriations Acts, other Federal
statutes or the provisions of this NOFA:
OMB Circular No. A-87 (Cost Principles Applicable to
Grants, Contracts and Other Agreements with State and Local
Governments);
OMB Circular A-21 (Cost Principles for Education
Institutions);
OMB Circular No. A-122 (Cost Principles for Nonprofit
Organizations);
OMB Circular A-133 (Audits of States, Local Governments,
and Non-Profit Organizations);
7 CFR part 3015 (Uniform Federal Assistance Regulations);
7 CFR part 3016 (Uniform Administrative Requirements for
Grants and Cooperative Agreements to State, Local, and Federally
recognized Indian Tribal governments);
7 CFR part 3017 (Government-wide debarment and suspension
(non-procurement) and
Government-wide requirements for drug-free workplace
(grants));
7 CFR part 3018 (New restrictions on Lobbying);
7 CFR part 3019 (Uniform administrative requirements for
grants and Agreements with Institutions of Higher Education, Hospitals,
and other Non-Profit Organizations); and
7 CFR part 3052 (Audits of States, local governments, and
non-profit organizations).
Compliance with additional OMB Circulars or government-wide
regulations may be specified in the grant agreement.
3. Reporting
The grantee will be required to provide periodic financial and
performance reports under USDA grant regulations and program rules and
to submit a final project performance report. The nature and frequency
of required reports are established in USDA grant regulations and the
project-specific grant agreements.
VII. Agency Contact
The Agency Contact for this grant announcement is Karen Larsen,
Management Analyst, Rural Utilities Service, Electric Programs, United
States Department of Agriculture, 1400 Independence Avenue, SW., STOP
1560, Room 5165 South Building, Washington, DC 20250-1560. Telephone
202-720-9545, Fax 202-690-0717, e-mail [email protected].
Dated: July 12, 2010.
Jonathan Adelstein,
Administrator, Rural Utilities Service.
[FR Doc. 2010-19509 Filed 8-6-10; 8:45 am]
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