High Energy Cost Grant Program

Available Funding Opportunities

Purpose: The High Energy Cost Grant Program provides financial assistance for the improvement of energy generation, transmission, and distribution facilities servicing eligible rural communities with home energy costs that are over 275 percent of the national average.

Eligibility: To be an eligible applicant under this program:

• You must be an eligible applicant;
• The grant project must serve an eligible extremely high energy cost community;
• The proposed project must improve energy generation, transmission, or distribution facilities service an eligible community; and
• The administrative costs of the project must not exceed 4 percent of grant funds.

Eligible Applicant: You are eligible to apply if you are any of the following:

• a legally-organized for-profit or nonprofit organization such as, but not limited to, a corporation, association, partnership (including a limited liability partnership), cooperative, or trust;
• a sole proprietorship;
• a State or local government, or any agency or instrumentality of a State or local government, including a municipal utility or public power authority;
• an Indian tribe, a tribally-owned entity, and Alaska Native Coorporation;
• an individual or group of individuals; or
• any of the above entities located in a U.S. Territory or other area authorized by law to participate in programs of the Rural Utilities Service or under the Rural Electrification Act.
  

Eligible Energy Projects: Grants under this program may be used for the acquisition, construction, installation, repair, replacement, or improvement of energy generation, transmission, or distribution facilities in communities with extremely high energy costs. On-grid and off-grid renewable energy projects, and energy efficiency, and energy conservation projects are eligible.

Denali Commission High Energy Cost Grants (CFDA 10.857) are made to the Denali Commission for energy generation, transmission, and distribution facilities serving rural Alaskan communities with average home costs exceeding 275% of the national average. Visit the Denali Commission for more information.

State Bulk Fuel Revolving Fund Grants (CFDA 10.858) are made to state government entities to establish and support revolving funds to provide a more cost-effective means of purchasing fuel for remote communities that are not served by surface transportation year round. State agencies that are interested in this program should consult the Agency Contact below for more information about eligibility and how to apply.

• Program Regulations
• Grants under this program have supported revolving loan program of the Alaska Energy Authority and the Alaska Department of Commerce, Community and Economic Development.

Contact Information

Karen Larsen
Rural Development Electric Programs
U.S. Department of Agriculture
1400 Independence Avenue, SW Stop 1560, Room 5165-South
Washington, DC 20250-1560
Telephone: (202) 720-9545 Fax: (202) 690-0717
Email karen.larsen@wdc.usda.gov