Opportunity Information: Apply for RD RUS HECG23
The Assistance to High Energy Cost Communities grant is a competitive funding opportunity run by the USDA Rural Utilities Service (RUS) to help places where residents pay exceptionally high household energy bills. The program makes up to $10 million available in total to support community-level energy projects in areas where the average annual residential spending for home energy is more than 275% of the national average. The intent is to reduce energy burdens and improve the reliability and affordability of energy service for entire communities rather than for individual customers.
Grant funds can be used to acquire, construct, or improve facilities involved in energy generation, transmission, or distribution, as long as those facilities serve an eligible high-cost community. The eligible project scope is broad and includes both on-grid and off-grid renewable energy projects, along with energy efficiency and energy conservation initiatives that measurably benefit the community. In practice, this could cover upgrades or additions to local power infrastructure, renewable generation that offsets costly imported fuel, and community-wide efficiency measures designed to cut consumption and lower bills.
There are important limits on what the money can pay for. Projects cannot be designed primarily to benefit a single household or a single business, meaning the work needs to deliver clear community-wide service or public benefit. The grant also cannot be used to pay for preparing the grant application, for operating costs, or for purchasing equipment, structures, or real estate that is not directly tied to providing community energy services.
Eligibility is expansive and includes many types of applicants: state, county, and local governments; special districts; independent school districts; public and private institutions of higher education; federally recognized tribal governments and other tribal organizations; public housing authorities and Indian housing authorities; nonprofits (including both 501(c)(3) and non-501(c)(3) entities); individuals; for-profit organizations (including small businesses); and other applicants as allowed under the program rules. The listing suggests that a wide range of community partners can apply, though projects still must meet the core community-serving and high-energy-cost requirements.
Key administrative details include the opportunity number RD RUS HECG23 and CFDA number 10.859. The original posting lists an expected 10 awards, with an award ceiling of $3,000,000 per award. The opportunity was created September 1, 2023, with an original closing date of October 31, 2023.Apply for RD RUS HECG23
- The Department of Agriculture, Rural Utilities Service in the business and commerce, community development, energy sector is offering a public funding opportunity titled "Assistance to High Energy Cost Communities" and is now available to receive applicants.
- Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 10.859.
- This funding opportunity was created on Sep 01, 2023.
- Applicants must submit their applications by Oct 31, 2023. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
- Each selected applicant is eligible to receive up to $3,000,000.00 in funding.
- The number of recipients for this funding is limited to 10 candidate(s).
- Eligible applicants include: State governments, County governments, City or township governments, Special district governments, Independent school districts, Public and State controlled institutions of higher education, Native American tribal governments (Federally recognized), Public housing authorities/Indian housing authorities, Native American tribal organizations (other than Federally recognized tribal governments), Nonprofits having a 501(c)(3) status with the IRS, other than institutions of higher education, Nonprofits that do not have a 501(c)(3) status with the IRS, other than institutions of higher education, Private institutions of higher education, Individuals, For profit organizations other than small businesses, Small businesses, Others (see text field entitled Additional Information on Eligibility for clarification).
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Assistance to High Energy Cost Communities (HECG) Grant - FAQs
What is the Assistance to High Energy Cost Communities grant?
The Assistance to High Energy Cost Communities (HECG) grant is a competitive funding opportunity run by the USDA Rural Utilities Service (RUS). It is designed to support community-level energy projects in places where residents face exceptionally high household energy bills.
What is the main purpose of this grant program?
The intent is to reduce energy burdens and improve the reliability and affordability of energy service for entire communities. The focus is on community-wide benefit, not help for individual customers.
How much funding is available under this opportunity?
The program makes up to $10 million available in total.
How many awards are expected?
The original posting lists an expected 10 awards.
What is the maximum award amount?
The award ceiling is $3,000,000 per award.
What communities are considered eligible "high energy cost" communities?
An eligible high-cost community is one where the average annual residential spending for home energy is more than 275% of the national average.
What kinds of projects can grant funds be used for?
Grant funds can be used to acquire, construct, or improve facilities involved in energy generation, transmission, or distribution, as long as those facilities serve an eligible high-cost community. The scope includes on-grid and off-grid renewable energy projects, as well as energy efficiency and energy conservation initiatives that measurably benefit the community.
Are renewable energy projects eligible?
Yes. The eligible project scope includes both on-grid and off-grid renewable energy projects, including renewable generation that offsets costly imported fuel.
Are energy efficiency and energy conservation projects eligible?
Yes. The program includes energy efficiency and energy conservation initiatives, as long as they measurably benefit the community (for example, community-wide efficiency measures designed to cut consumption and lower bills).
Does the project have to benefit the entire community?
Yes. Projects cannot be designed primarily to benefit a single household or a single business. The work needs to deliver clear community-wide service or public benefit.
Can the grant be used for transmission and distribution improvements?
Yes. Funds can be used to acquire, construct, or improve facilities involved in energy generation, transmission, or distribution, as long as they serve an eligible high-cost community.
What are examples of eligible activities described in the opportunity?
Examples mentioned include upgrades or additions to local power infrastructure, renewable generation that offsets costly imported fuel, and community-wide efficiency measures designed to cut consumption and lower bills.
What costs are explicitly not allowed with grant funds?
The grant cannot be used to pay for preparing the grant application, for operating costs, or for purchasing equipment, structures, or real estate that is not directly tied to providing community energy services.
Can the grant pay for preparing the grant application?
No. Grant funds cannot be used to pay for preparing the grant application.
Can the grant pay for ongoing operating costs?
No. Grant funds cannot be used for operating costs.
Can the grant be used to buy equipment, structures, or real estate?
Only if the purchase is directly tied to providing community energy services. The grant cannot be used to purchase equipment, structures, or real estate that is not directly tied to providing community energy services.
Who is eligible to apply?
Eligibility is expansive and includes: state, county, and local governments; special districts; independent school districts; public and private institutions of higher education; federally recognized tribal governments and other tribal organizations; public housing authorities and Indian housing authorities; nonprofits (including both 501(c)(3) and non-501(c)(3) entities); individuals; for-profit organizations (including small businesses); and other applicants as allowed under the program rules.
Are tribal governments and tribal organizations eligible?
Yes. Federally recognized tribal governments and other tribal organizations are listed as eligible applicants.
Are nonprofits eligible to apply?
Yes. Nonprofits are eligible, including both 501(c)(3) and non-501(c)(3) entities.
Are for-profit organizations eligible to apply?
Yes. For-profit organizations, including small businesses, are listed as eligible applicants.
Can individuals apply?
Yes. Individuals are included in the list of eligible applicants, as long as the proposed project meets the program's community-serving and high-energy-cost requirements.
Can schools or higher education institutions apply?
Yes. Independent school districts and public and private institutions of higher education are listed as eligible applicants.
What federal program identifiers are associated with this opportunity?
The opportunity number is RD RUS HECG23 and the CFDA number is 10.859.
When was this opportunity posted and what was the original closing date?
The opportunity was created on September 1, 2023, with an original closing date of October 31, 2023.
Is this a competitive grant?
Yes. It is described as a competitive funding opportunity.
What is the core requirement a project must meet besides applicant eligibility?
Beyond applicant eligibility, projects must serve an eligible high-cost community (where average annual residential home energy spending is more than 275% of the national average) and must be designed for community-wide service or public benefit rather than primarily benefiting a single household or business.
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