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.Apply for 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).
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Assistance to High Energy Cost Communities (HECG) Grant FAQs
What is the Assistance to High Energy Cost Communities (HECG) grant?
The Assistance to High Energy Cost Communities grant is a competitive funding opportunity administered by the USDA Rural Utilities Service (RUS). It is designed to help communities where residents face unusually high home energy bills by supporting community-level energy solutions.
What problem is this grant intended to address?
The program targets extreme residential energy cost burdens in places where average annual residential home energy spending exceeds 275 percent of the national average. The intent is to reduce these high costs by strengthening or modernizing local energy systems that serve entire communities.
How much total funding was made available under this opportunity?
RUS made up to $10 million available under this program.
What is the maximum award amount per grant?
The award ceiling is $3,000,000 per award.
How many awards did the agency expect to make?
The agency anticipated making around 10 awards, with selections made competitively until available funds were committed.
Is this a competitive grant or a formula/entitlement program?
This is a competitive (discretionary) grant opportunity, meaning proposals are selected based on merit and program criteria rather than being automatically awarded by formula.
What types of projects can the grant fund?
Funding can be used to acquire, build, or improve energy generation, transmission, or distribution facilities that provide community energy services. The program can support a broad range of project types, as long as they are designed to benefit an eligible high-cost community.
Are renewable energy projects eligible?
Yes. The program is broad and may consider both on-grid and off-grid renewable energy projects, as long as the project is designed to benefit an eligible high-cost community.
Can the grant support energy efficiency or energy conservation projects?
Yes. Energy efficiency and energy conservation efforts are included among the types of projects the program may consider, provided they are designed to benefit an eligible high-cost community.
Does the project have to serve an entire community?
The intent is to support community-level energy solutions and improvements to local energy systems that serve entire communities rather than individual customers.
Can funds be used for a project that primarily benefits a single household?
No. A key limitation is that projects cannot be primarily for the benefit of a single household; proposals must demonstrate broader public or community benefit tied to local energy service needs.
Can funds be used for a project that primarily benefits a single business?
No. Projects cannot be primarily for the benefit of a single business. Proposals need to show broader public or community benefit connected to community energy service needs.
What are examples of eligible uses of grant funds at a high level?
Eligible uses include acquiring, building, or improving facilities for energy generation, energy transmission, or energy distribution that provide community energy services, including eligible renewable energy and energy efficiency/conservation efforts.
What costs are explicitly not allowed under this grant?
Grant funds may not be used to prepare the grant application, pay operating costs, or purchase equipment, structures, or real estate that are not directly associated with providing community energy services.
Can the grant pay for preparing or writing the grant application?
No. Funds may not be used to prepare the grant application itself.
Can the grant pay for operating costs?
No. Funds may not be used to pay operating costs.
Can the grant be used to buy equipment, structures, or real estate that are unrelated to energy services?
No. Funds may not be used to purchase equipment, structures, or real estate that are not directly associated with providing community energy services.
What is the main focus of the funding: operations or implementation?
The grant is meant for project implementation and capital improvements closely tied to delivering community energy services, not administrative overhead, routine operations, or unrelated purchases.
Who is the federal agency administering this opportunity?
The opportunity is run by the USDA Rural Utilities Service (RUS).
What type of funding instrument is used?
The opportunity uses a grant funding instrument.
What CFDA number is associated with this program?
The opportunity is associated with CFDA number 10.859.
What activity areas does this grant fall under?
The opportunity is associated with activity areas including energy, community development, and business and commerce.
Who is eligible to apply?
Eligibility is expansive. 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 individuals (with additional eligibility details referenced in the full opportunity text).
Are tribal governments and tribal organizations eligible applicants?
Yes. Federally recognized tribal governments and other tribal organizations are listed as eligible.
Are nonprofit organizations eligible even if they do not have 501(c)(3) status?
Yes. Nonprofits with or without 501(c)(3) status are listed as eligible applicants.
Are for-profit organizations eligible to apply?
Yes. For-profit organizations, including small businesses, are listed as eligible applicants.
Are individuals eligible to apply?
Yes. Individuals are listed among eligible applicants, with additional eligibility details referenced in the full opportunity text.
What is the funding opportunity number for this grant?
The funding opportunity number is RD RUS HECG21.
When was this opportunity created?
The opportunity was created on May 4, 2021.
What was the original application closing date?
The original application closing date was July 6, 2021.
What does it mean that the community must have energy spending above 275 percent of the national average?
It means the program targets areas where the average annual residential spending on home energy is more than 275 percent of the national average, indicating unusually high household energy cost burdens compared to typical U.S. levels.
Does the program support on-grid projects only?
No. The program may consider both on-grid and off-grid projects, including renewable energy projects, as long as they benefit an eligible high-cost community.
What is the basic public-benefit standard described for projects?
Projects must demonstrate broader public or community benefit tied to local energy service needs, rather than primarily benefiting a single household or a single business.
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Applicants also applied for:
Applicants who have applied for this opportunity (RD RUS HECG21) also looked into and applied for these:
| Funding Opportunity |
|---|
| Assistance to High Energy Cost Communities Apply for RD RUS HECG23 Funding Number: RD RUS HECG23 Agency: Department of Agriculture, Rural Utilities Service Category: Business and Commerce, Community Development, Energy Funding Amount: $3,000,000 |
| High Energy Cost Grants Apply for RD RUS HECG25 Funding Number: RD RUS HECG25 Agency: Rural Utilities Service Category: Business and Commerce, Community Development, Energy Funding Amount: $3,000,000 |
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