Assistance to High Energy Cost Communities | RD RUS HECG21

Opportunity Information: Apply for RD RUS HECG21

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 face unusually high home energy bills. RUS made up to $10 million available under this program to support community-level energy solutions in areas where the average annual residential energy spending for home energy is more than 275 percent of the national average. The intent is to reduce extreme energy cost burdens by strengthening or modernizing the local energy systems that serve entire communities rather than individual customers.

Funding can be used to acquire, build, or improve energy generation, transmission, or distribution facilities that provide community energy services. The program is broad in the types of eligible projects it will consider, including both on-grid and off-grid renewable energy projects as well as energy efficiency and energy conservation efforts, as long as they are designed to benefit an eligible high-cost community. A key limitation is that projects cannot be primarily for the benefit of a single household or a single business; proposals need to demonstrate a broader public or community benefit tied to local energy service needs.

There are also clear restrictions on what grant dollars cannot cover. Funds may not be used to prepare the grant application itself, to pay operating costs, or to purchase equipment, structures, or real estate that are not directly associated with providing community energy services. In practical terms, the grant is meant for project implementation and capital improvements tied closely to delivering energy services, not administrative overhead, routine operations, or unrelated property and equipment purchases.

The opportunity is listed as discretionary and uses a grant funding instrument. It falls under several activity areas including energy, community development, and business and commerce, and it is associated with CFDA number 10.859. The award ceiling is $3,000,000 per award, and the agency anticipated making around 10 awards, implying that proposals would be selected competitively until available funds are committed.

Eligibility is expansive and includes many entity types that might plan, own, operate, or support community energy infrastructure. Eligible applicants include state, county, and local governments; special districts; independent school districts; public housing authorities; public and private institutions of higher education; federally recognized tribal governments and other tribal organizations; nonprofits with or without 501(c)(3) status; for-profit organizations (including small businesses); and even individuals, with additional eligibility details referenced in the full opportunity text. The opportunity was created May 4, 2021, with an original application closing date of July 6, 2021, under funding opportunity number RD RUS HECG21.

• The Department of Agriculture, Utilities Programs 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 May 04, 2021.
• Applicants must submit their applications by Jul 06, 2021. (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).

Apply for RD RUS HECG21

[Watch] Creating a grant proposal using the step-by-step wizard inside the applicant portal: