Opportunity Information: Apply for RD RUS HECG19
The Assistance to High Energy Cost Communities program is a competitive grant opportunity run by the USDA Rural Utilities Service (RUS) to help places where residents pay unusually high amounts for home energy. The agency made up to $10 million available in total funding under this round (Funding Opportunity Number: RD RUS HECG19; CFDA 10.859), with an expected 10 awards and a maximum award size (ceiling) of $3,000,000 per grant. The program is designed for community-level energy solutions in areas where the average annual residential home energy expenditure is more than 275 percent of the national average, which is the key threshold used to define "extremely high energy costs" for eligibility.
Grant funds can be used for capital-type projects that directly improve energy service for an eligible community. Specifically, the program supports acquiring, constructing, or improving energy generation, transmission, or distribution facilities that serve the community. It also explicitly allows both on-grid and off-grid renewable energy projects, which can include systems intended to reduce reliance on expensive fuels or improve local energy resilience where traditional grid service is limited or costly. In addition to infrastructure, the program supports energy efficiency and energy conservation projects, recognizing that reducing demand and waste can lower household energy burdens and stabilize community energy costs over time.
A central guardrail in the program is that projects must be oriented toward broad community benefit rather than serving as a subsidy for one customer. Proposals cannot be primarily for the benefit of a single household or a single business, so applicants generally need to demonstrate that the proposed facilities or improvements provide energy services to a wider community, multiple customers, or a public-serving system. Another major limitation is that funds are not meant to cover routine or administrative expenses: grant dollars cannot be used to prepare the grant application, cannot be used for operating costs, and cannot be used to buy equipment, structures, or real estate unless those purchases are directly tied to delivering community energy services. In practice, this steers budgets toward tangible project costs that clearly connect to generation, delivery, efficiency upgrades, or conservation measures that reduce community energy costs.
Eligibility is broad and includes many types of entities that might be positioned to develop or sponsor community energy projects. Eligible applicants include state, county, and city/township governments; special district governments; independent school districts; public and state-controlled institutions of higher education; private institutions of higher education; federally recognized Native American tribal governments and certain tribal organizations; public housing authorities and Indian housing authorities; nonprofit organizations (both 501(c)(3) and non-501(c)(3), other than institutions of higher education); for-profit organizations (including entities other than small businesses as well as small businesses); individuals; and other applicants as described in the opportunity’s additional eligibility information. The wide eligibility list reflects the reality that high energy cost problems often involve utilities, local governments, tribal entities, housing providers, and community organizations, any of which may be able to lead an infrastructure or efficiency project depending on local conditions.
Administratively, this was a discretionary grant opportunity (Funding Instrument Type: Grant) under activity categories that include Energy, Community Development, and Business and Commerce. The opportunity was created on April 26, 2019, and originally closed on June 24, 2019.Apply for RD RUS HECG19
- 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 Apr 26, 2019.
- Applicants must submit their applications by Jun 24, 2019. (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 program?
The Assistance to High Energy Cost Communities program is a competitive grant opportunity run by the USDA Rural Utilities Service (RUS). It is designed to support community-level energy solutions in places where residents pay unusually high amounts for home energy.
What is the funding opportunity number and CFDA number for this grant?
This round of funding is identified as Funding Opportunity Number RD RUS HECG19 and CFDA 10.859.
How much total funding was available under this round?
The agency made up to $10 million available in total funding under this round.
How many awards were expected to be made?
The opportunity listed an expected 10 awards.
What is the maximum grant award amount (ceiling)?
The maximum award size (ceiling) was $3,000,000 per grant.
What type of funding instrument is this?
This was a discretionary grant opportunity with Funding Instrument Type listed as Grant.
What activity categories does this opportunity fall under?
The activity categories included Energy, Community Development, and Business and Commerce.
What does the program consider "extremely high energy costs" for eligibility?
An eligible community is one where the average annual residential home energy expenditure is more than 275 percent of the national average. This 275 percent threshold is the key eligibility definition described for "extremely high energy costs."
What kinds of projects can grant funds be used for?
Grant funds can be used for capital-type projects that directly improve energy service for an eligible community. The opportunity supports acquiring, constructing, or improving energy generation, transmission, or distribution facilities that serve the community.
Does the program fund renewable energy projects?
Yes. The program explicitly allows both on-grid and off-grid renewable energy projects, including systems intended to reduce reliance on expensive fuels or improve local energy resilience where traditional grid service is limited or costly.
Are energy efficiency and conservation projects eligible?
Yes. In addition to infrastructure, the program supports energy efficiency and energy conservation projects, recognizing that reducing demand and waste can lower household energy burdens and stabilize community energy costs over time.
Do projects need to benefit the broader community?
Yes. A central requirement is that projects must be oriented toward broad community benefit rather than serving as a subsidy for one customer. Proposals cannot be primarily for the benefit of a single household or a single business.
Can a project that mainly helps one household or one business be funded?
No. The opportunity states that proposals cannot be primarily for the benefit of a single household or a single business. Applicants generally need to show that the proposed facilities or improvements provide energy services to a wider community, multiple customers, or a public-serving system.
Can grant funds be used to prepare the grant application?
No. The opportunity specifies that grant dollars cannot be used to prepare the grant application.
Can grant funds be used for operating costs?
No. The opportunity states that grant dollars cannot be used for operating costs.
Can the grant pay for equipment, structures, or real estate?
Only if the purchase is directly tied to delivering community energy services. The opportunity notes that funds are not meant for routine or administrative expenses and cannot be used to buy equipment, structures, or real estate unless those purchases are directly connected to providing energy services to the eligible community.
What kinds of applicants are eligible to apply?
Eligibility is broad and includes many entity types. Eligible applicants included:
- State governments
- County governments
- City or township governments
- Special district governments
- Independent school districts
- Public and state-controlled institutions of higher education
- Private institutions of higher education
- Federally recognized Native American tribal governments and certain tribal organizations
- Public housing authorities and Indian housing authorities
- Nonprofit organizations (501(c)(3) and non-501(c)(3), other than institutions of higher education)
- For-profit organizations (including small businesses and entities other than small businesses)
- Individuals
- Other applicants as described in the opportunity's additional eligibility information
Are for-profit organizations allowed to apply?
Yes. The eligibility list included for-profit organizations, including small businesses and entities other than small businesses.
Are nonprofits allowed to apply?
Yes. The eligibility list included nonprofit organizations, both 501(c)(3) and non-501(c)(3) (other than institutions of higher education).
Can tribal governments or tribal organizations apply?
Yes. Federally recognized Native American tribal governments and certain tribal organizations were included as eligible applicants.
Can individuals apply?
Yes. Individuals were listed among eligible applicants, with the general expectation that funded projects must deliver broad community benefit and not primarily benefit a single household.
When was this opportunity created and when did it close?
The opportunity was created on April 26, 2019, and originally closed on June 24, 2019.
Is this opportunity competitive?
Yes. It was described as a competitive grant opportunity.
What is the main purpose of the program?
The program aims to reduce unusually high residential energy burdens by funding community-level energy projects. Eligible uses include improving generation and delivery infrastructure and supporting renewable energy, energy efficiency, and energy conservation measures that can lower costs and improve resilience.
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| Funding Opportunity |
|---|
| Assistance to High Energy Cost Communities Apply for RD RUS HECG20 Funding Number: RD RUS HECG20 Agency: Department of Agriculture, Utilities Programs Category: Business and Commerce, Community Development, Energy Funding Amount: $3,000,000 |
| Assistance to High Energy Cost Communities Apply for RD RUS HECG21 Funding Number: RD RUS HECG21 Agency: Department of Agriculture, Utilities Programs Category: Business and Commerce, Community Development, Energy Funding Amount: $3,000,000 |
| 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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