Source: https://www.federalregister.gov/documents/2010/08/09/2010-19509/announcement-of-grant-application-deadlines-and-funding-levels-for-the-assistance-to-high-energy
Timestamp: 2017-09-21 17:03:51
Document Index: 665409422

Matched Legal Cases: ['art 1709', 'art 1709', 'art 1709', 'art 1709', 'arts 3015', 'art 1709', 'art 1794', 'art 1794']

A Notice by the Rural Utilities Service on 08/09/2010
47756-47769 (14 pages)
A. Application Contents for New Applications
B. Special Requirements for Applicants Requesting Reconsideration of an Application Submitted in 2008
https://www.federalregister.gov/d/2010-19509 https://www.federalregister.gov/d/2010-19509
The Rural Utilities Service (RUS), an agency of the United States Department of Agriculture (USDA), announces the availability of $15.5 million in Fiscal Year 2010 for competitive grants to assist communities with extremely high energy costs. This grant program is authorized under section 19 of the Rural Electrification Act of 1936 (RE Act) (7 U.S.C. 918a) and program regulations at 7 CFR Part 1709. The grant funds may be used to acquire, construct, extend, upgrade, or otherwise improve energy generation, transmission, or distribution facilities serving communities in which the average residential expenditure for home energy exceeds 275 percent of the national average. Eligible applicants include persons, States, political subdivisions of States, and other entities organized under State law. Federally-recognized Indian Tribes and Tribal entities are eligible applicants. This notice describes the eligibility and application requirements, the criteria that will be used by the Agency to award funding, and information on how to obtain application materials. The Catalog of Federal Domestic Assistance (CFDA) Number for this program is 10.859. You may obtain the Application Guide and materials for the Assistance to High Energy Cost Rural Communities Grant Program via the Internet at the following Web site: http://www.usda.gov/​rus/​electric/​hecgp/​index.htm. You may also request the Application Guide and materials from RUS by contacting the individual listed Start Printed Page 47757in the FOR FURTHER INFORMATION CONTACT section of this notice.
Paper applications must be postmarked and mailed, shipped, or sent overnight, no later than September 8, 2010, or hand delivered to RUS by this deadline, to be eligible under this NOFA. Late or incomplete applications will not be eligible for FY 2010 grant funding.
Electronic applications must be submitted through Grants.gov no later than September 8, 2010 to be eligible under this NOFA for FY 2010 grant funding. Late or incomplete electronic applications will not be eligible. Applications will not be accepted by electronic mail. Applications will be accepted on publication of this notice.
Paper applications are to be submitted to the Rural Utilities Service, Electric Programs, United States Department of Agriculture 1400 Independence Avenue, SW., STOP 1560, Room 5165 South Building, Washington, DC 20250-1560. Applications should be marked “Attention: High Energy Cost Grant Program.”
Application Guides and materials may be obtained electronically through: http://www.usda.gov/​rus/​electric/​hecgp/​index.htm. Call the RUS Electric Programs at (202) 720-9545 to request paper copies of Application Guides and other materials.
Karen Larsen, Management Analyst, Rural Utilities Service, Electric Programs, United States Department of Agriculture, 1400 Independence Avenue, SW., STOP 1560, Room 5165 South Building, Washington, DC 20250-1560. Telephone 202-720-9545, Fax 202-690-0717, e-mail energy.grants@wdc.usda.gov.
Federal Agency Name: United States Department of Agriculture, Rural Utilities Service, Assistant Administrator, Electric Programs.
Funding Opportunity Number: RD-RUS-HECG10.
Dates: Applications must be postmarked and mailed or shipped, or hand delivered to the RUS, or filed with Grants.gov by September 8, 2010.
The Rural Utilities Service (RUS) is making available $15.5 million in competitive grants under section 19 of the Rural Electrification Act of 1936 (the “RE Act”) (7 U.S.C. 918a). Under section 19, the RUS Administrator is authorized to make grants to “acquire, construct, extend, upgrade, and otherwise improve energy generation, transmission, or distribution facilities” serving extremely high energy cost communities. Eligible communities are those in which the average residential expenditure for home energy is at least 275 percent of the national average residential expenditure for home energy under one or more of the benchmarks published in this notice. Program regulations are codified at 7 CFR part 1709.
No cost sharing or matching funds are required as a condition of eligibility under this grant program. However, the RUS will consider other financial resources available to the applicant and any voluntary commitment of matching funds or other contributions in assessing the applicant's capacity to carry out the grant program successfully. The RUS will award additional evaluation points to any proposals that include such contributions.
This NOFA provides an overview of the grant program, and the eligibility and application requirements, and selection criteria for grant proposals. This NOFA includes changes to eligibility benchmarks and to scoring criteria. Applicants are encouraged to review the notice carefully. RUS is also making available an Application Guide with more detailed information on application requirements and copies of all required forms and certifications. The Application Guide is available on the Internet from the Agency Web site at: http://www.usda.gov/​rus/​electric/​hecgp/​index.htm. The Application Guide may also be requested from the contact listed in the FOR FURTHER INFORMATION CONTACT section of this notice. For additional information, applicants should consult the program regulations at 7 CFR part 1709.
Extremely high energy costs means community average residential energy costs that meet or exceed one or more home energy cost benchmarks Start Printed Page 47758established by the Administrator at 275 percent of the national average residential energy expenditures as reported by the Energy Information Administration (EIA) of the United States Department of Energy.
The total amount of funds available for grants in Fiscal Year 2010 under this notice is $15.5 million. The maximum amount of grant assistance that will be considered for funding in a grant application under this notice is $5,000,000. The minimum amount of assistance for a grant application under this program is $75,000. The number of grants awarded under this NOFA will depend on the number of applications submitted, the amount of grant funds requested, the quality and competitiveness of applications submitted, and the availability of funds.
The funding instrument available under this NOFA will be a grant agreement. Grants awarded under this notice must comply with all applicable USDA and Federal regulations concerning financial assistance, with the terms of this notice, and with the requirements of section 19 of the RE Act. Grants made under this NOFA will be administered under the Agency program regulations at 7 CFR part 1709 and USDA financial assistance regulations at 7 CFR parts 3015, 3016, 3017, 3018, 3019, and 3052, as applicable. The award period will generally be for 36 months, however, longer periods may be approved depending on the project involved. Grantees may request project extensions.
A new applicant must provide a narrative grant proposal prepared according to the instructions in this NOFA along with all required forms and information in order to submit a complete application.
Any prior applicant that submitted a project proposal in response to the NOFA published on January 28, 2008 (73 FR 4,778) may request reconsideration of the earlier application if the applicant was notified in writing by the RUS that the application was accepted as complete and timely, but was not selected for funding. The RUS has retained these original applications. These 2008 eligible applicants may submit additional information for consideration of their 2008 applications as described later in this notice. Applicants under the 2008 NOFA that were rejected as incomplete or ineligible may submit new or revised applications that meet the requirements of this NOFA.
All timely submitted and complete applications will be reviewed for eligibility and rated according to the criteria described in this NOFA. Applications will be ranked in order of their numerical scores on the rating criteria and forwarded to the RUS Administrator. The Administrator will review the rankings and the recommendations of the rating panel. The Administrator will then fund grant applications in rank order. The Agency reserves the right in its sole discretion to make additional awards to applications submitted under this announcement through reprogramming available program funds.
The RUS reserves the right not to award any or all the funds made available under this notice, if in the sole opinion of the Administrator, the grant proposals submitted are not deemed feasible under program requirements. The RUS also reserves the right to partially fund grants if grant applications exceed the available funds. The RUS will advise applicants if it cannot fully fund a grant request.
The Office of Management and Budget requires that all applicants for Federal grants with the exception of individuals other than sole proprietorships must provide a Dun and Bradstreet (D&B) Data Universal Numbering System (DUNS) number with their applications. Consistent with this Federal policy Start Printed Page 47759directive, any organization or sole proprietorship that applies for a high energy cost grant must use its DUNS number on the application and in the field provided on the revised Standard Form 424 (SF 424) “Application for Federal Assistance” to be eligible to apply. DUNS numbers are available for free to Federal Grant applicants on line at http://fedgov.dnb.com/​webform or may be obtained through a short phone call to D&B. Please see the “Get Registered” section on Grants.gov for more information on how to obtain a DUNS number or how to verify if your organization already has a DUNS number. If you already have obtained a DUNS number in connection with the Federal acquisition process or requested or had one assigned to you for another purpose, you should use that number on all of your applications. It is not necessary to request another DUNS number from D&B.
No cost sharing or matching funds are required as a condition of eligibility under this grant program. However, the RUS will consider other financial resources available to the grant applicant and any voluntary pledge of matching funds or other contributions in assessing the applicant's commitment and capacity to carry out the grant program successfully and will award additional evaluation points to proposals that include such contributions. If a successful applicant proposes to use matching funds or other cost contributions in its project to obtain additional evaluation points, the grant agreement will include conditions requiring documentation of the availability of the matching funds and actual expenditure of matching funds or cost contributions. The Agency may require the applicant to provide additional documentation confirming the availability of any matching contribution offered prior to approval of project selection. If an applicant fails to provide timely documentation of the availability of matching contributions, the RUS may, in its sole discretion, disallow any points awarded for matching contributions and rescore the project, or decline to award the project if uncertainties over availability of the match render the project financially infeasible; and/or impose additional conditions.
The statutory requirement that community residential expenditures for home energy exceed 275 percent of national average establishes a very high threshold for eligibility under this program. The Agency has calculated high energy cost benchmarks based on the most recent EIA national average home energy expenditure data. The current benchmarks are shown in Table 1. These benchmarks have been revised since publication of the 2008 NOFA. New applicants must demonstrate that proposed target communities must meet one or more high energy cost benchmarks to qualify as an eligible beneficiary of a grant under this program. All applications submitted after publication of this announcement must meet these current eligibility benchmarks. Eligible applications submitted under the January 28, 2008 and requesting reconsideration will retain eligibility established under the prior benchmarks. Based on available published information on residential energy costs, the Agency anticipates that only those communities with the highest energy costs across the country will qualify under this congressionally-mandated standard.
The EIA's Residential Energy Consumption and Expenditure Surveys (RECS) and reports provide the baseline national average household energy costs that were used for establishing extremely high energy cost community eligibility criteria for this grant program. The RECS data base and reports provide national and regional information on residential energy use, expenditures, and housing characteristics. EIA published its latest available RECS home energy expenditure survey results in 2009. These estimates of home energy usage and expenditures are based on national surveys conducted in 2005 survey data and are shown in Table 1 as follows:Start Printed Page 47760
Table 1—National Average Annual Household Energy Expenditures and Extremely High Energy Cost Eligibility Benchmarks Effective for Applications Submitted on or after August 9, 2010
Electricity $1,123 $3,010
Electricity (kilowatt hours) $0.10 $0.264
Sources: Energy Information Administration, United States Department of Energy, 2005 Residential Energy Consumption Survey—Detailed Tables, available at: http://www.eia.doe.gov/​emeu/​recs/​recs2005/​c&​e/​detailed_​tables2005c&​e.html. The RUS benchmarks calculations include adjustments to reflect the uncertainties inherent in EIA's statistical methodology for estimating home energy costs. The benchmarks are set based on the EIA's lower range estimates using the specified EIA methods.
a. Extremely High Average Annual Household Expenditure for Home Energy. The target area or community exceeds one or more of the following:
b. Extremely High Average per unit energy costs. The average residential per unit cost for major commercial energy sources in the target area or community exceeds one or more of the following:
Start Printed Page 47761
USDA encourages the coordination of grant projects under this program with State development initiatives. There is no requirement that the grant proposal receive the concurrence or approval of State officials as a condition of eligibility under this program. The Agency will, however, award additional points to proposals that are coordinated with and support rural development initiatives within a State. The applicant should describe how the proposed project will support State rural development initiatives and provide documentation evidencing any project relationship to State initiatives.
Consistent with USDA policy and program regulations, grant funds awarded under this program generally cannot be used to replace other USDA assistance or to refinance or repay outstanding loans under the RE Act. Grant funds may, however, be used in combination with other USDA assistance programs including electric loans. Grants may be applied toward grantee contributions under other USDA programs depending on the terms of those programs. For example, an applicant may propose to use grant funds to offset the costs of electric system improvements in extremely high cost areas by increasing the utility's contribution for line extensions or system expansions to its distribution system financed in whole or part by an electric loan under the RE Act. An Start Printed Page 47762applicant may propose to finance a portion of an energy project for an extremely high energy cost community through this grant program and secure the remaining project costs through a loan or loan guarantee or grant from the Agency or other sources.
Applications materials and the Application Guide are available for download through http://www.Grants.gov (under CFDA No. 10.859) and on the Electric Programs Web site at: http://www.usda.gov/​rus/​electric/​hecgp/​index.htm.
There are different application requirements for first-time applicants and for prior applicants requesting reconsideration. First-time applicants are those that did not submit a timely and complete application or request for reconsideration in response to the January 28, 2008 (73 FR 4778) NOFA. First-time applicants should follow the directions in this notice and the Application Guide in preparing their applications and narrative proposals. The completed application package should be assembled in the order specified with all pages numbered sequentially or by section. If you submitted an application in 2003, 2004, 2005, or 2007, but did not submit a request for reconsideration in 2008, you must submit a complete new application package meeting current eligibility and content requirements. Prior 2008 applicants should follow the special instructions for reconsideration of their applications and submit a revised Standard Form 424 (SF-424), a letter requesting reconsideration, and any supplemental material by the deadline.
First-time applicants must submit the following information for the application to be complete and considered for funding:
i. Part A. A Completed SF 424, “Application for Federal Assistance.” This form must be signed by a person authorized to submit the proposal on behalf of the applicant. Note: SF 424 has recently been revised to include new required data elements, including a DUNS number. You must submit the revised form. Copies of this form are available in the application package available on line through the Agency Web site or through Grants.gov, or by request from the Agency contact listed above.
ii. Part B. Grant Proposal. The grant proposal is a narrative description prepared by the applicant that establishes the applicant's eligibility, identifies the eligible extremely high energy cost communities to be served by the grant, and describes the proposed grant project, the potential benefits of the project, and a proposed budget. The grant proposal should contain the following sections in the order indicated.
5. Coordination with State Rural Development Initiatives. In this section the applicant must describe how the Start Printed Page 47763proposed grant is coordinated with and supports any rural development efforts. The applicant should provide supporting references or documentation of any relationship or contribution to State rural development initiatives.
7. Proposed Project Budget. The applicant must submit a proposed budget for the grant program on SF 424A, “Budget Information—Non-Construction Programs” or SF-424C, “Standard Form for Budget Information-Construction Programs,” as applicable. All applicants that submit applications through Grants.gov must use SF-424A. The applicant should supplement the budget summary form with more detailed information describing the basis for cost estimates. The detailed budget estimate should itemize and explain major proposed project cost components such as, but not limited to, the expected costs of design and engineering and other professional services, personnel costs (salaries/wages and fringe benefits), equipment, materials, property acquisition, travel (if any), and other direct costs, and indirect costs, if any. The budget must document that planned administrative and other expenses of the project sponsor that are not directly related to performance of the grant will not total more than 4 percent of grant funds. The applicant must also identify the source and amount of any other Federal or non-Federal contributions of funds or services that will be used to support the proposed project. This program does not require supplemental or matching funds for eligibility; however, the Agency will award additional rating points for programs that include a match of other funds or like-kind contributions to support the project.
iii. Part C. Additional Required Forms and Certifications. In order to establish compliance with other Federal requirements for financial assistance, the applicant must execute and submit with the initial application the following forms and certifications:
Environmental Profile. The Agency environmental profile template included in the Application Guide solicits information about project characteristics and site-specific conditions that may involve environmental, historic preservation, and other resources. The profile will be used by the Agency's environmental staff to identify selected projects that may require additional environmental reviews, assessments, or environmental impact statements before a final grant award may be approved. A copy of the environmental profile and instructions for completion are included in the Application Guide and may be downloaded from the Agency Web site or Grants.gov.Start Printed Page 47764
Applicants that submitted applications in response to the NOFA published on January 28, 2008 (73 FR 4,778) and that later received a letter from the RUS with their scores and advising them that the application was determined to be eligible and complete, may request reconsideration of their 2008 applications in this round of competitive funding. To request reconsideration, the applicant must submit a new original Standard Form SF 424, including mandatory data elements (DUNS number, fax number, and e-mail address) along with a brief signed letter requesting reconsideration and identifying any additional information that they wish to be considered by the rating panel in reviewing their application along with supporting documentation. Community eligibility for these prior applications was determined under the eligibility benchmarks for the 2008 NOFA. These accepted and complete applications will be grandfathered under this NOFA.
The required application package for reconsideration will consist of the original signed SF 424, the request for reconsideration, and any additional supporting documents, plus the original application package submitted to the RUS in 2008. The Agency has maintained these prior applications on file and will add the newly submitted material to the existing application package for review by the rating panel. You do not need to send a copy of the 2008 application package. Because this abbreviated application package differs from the general application package for first time applicants available through Grants.gov, applicants requesting reconsideration should submit their requests directly to the RUS by the application deadline and not through Grants.gov. Applicants that submitted an application in 2008 also have the option of submitting an entirely new complete application package for their project under the requirements of this NOFA.
In addition to the information required to be submitted in the application package, the RUS may request that successful grant applicants provide additional information, analyses, forms and certifications as a condition of pre-award clearance, including any environmental reviews or other reviews or certifications required under USDA and Government-wide assistance regulations. The RUS will advise the applicant in writing of any additional information required.
Applicants that are submitting paper application packages must submit one original application package that includes original signatures on all required forms and certifications and two copies. Applications should be submitted on 8 1/2 by 11 inch white paper. Supplemental materials, such as maps, charts, plans, and photographs may exceed this size requirement.
Applications must be postmarked or hand delivered to the RUS or posted to Grants.gov by September 8, 2010. The Agency will begin accepting applications on the date of publication of this NOFA. The Agency will accept for review all applications postmarked or delivered to us by this deadline. Late applications will not be considered and will be returned to the applicant.
For the purposes of determining the timeliness of an application the RUS will accept the following as a valid postmarks: the date stamped by the United States Postal Service on the outside of the package containing the application delivered by U.S. Mail; the date the package was received by a commercial delivery service as evidenced by the delivery label; the date received via hand delivery to the RUS headquarters; and the date an electronic application was posted for submission to Grants.gov.
Applicants that are submitting paper applications must submit one original application package that includes original signatures on all required forms and certifications and two copies. Applications should be single-sided and submitted on 81/2 by 11-inch white paper. Supplemental materials, such as maps, charts, plans, and photographs may exceed this size requirement.
A completed application for first-time applicants must contain all required parts in the order indicated in the above section on “Content and Form of Application Submission.” The Start Printed Page 47765application package should be paginated either sequentially or by section. Applicants seeking reconsideration should follow the special instructions above.
The completed paper application package and two copies must be delivered to the RUS headquarters in Washington, DC using United States Mail, overnight delivery service, or by hand to the following address: Rural Utilities Service, Electric Programs, United States Department of Agriculture, 1400 Independence Avenue, SW., STOP 1560, Room 5165 South Building, Washington, DC 20250-1560. Applications should be marked “Attention: High Energy Cost Community Grant Program.”
Applicants are advised that regular mail deliveries to Federal Agencies, especially of oversized packages and envelopes, continue to be delayed because of increased security screening requirements. Applicants may wish to consider using Express Mail or a commercial overnight delivery service instead of regular mail. Applicants wishing to hand deliver or use courier services for delivery should contact the Agency representative in advance to arrange for building access. The RUS advises applicants that because of intensified security procedures at government facilities that any electronic media included in an application package may be damaged during security screening. If an applicant wishes to submit such materials, they should contact the agency representative for additional information.
The RUS will accept electronic applications through the Federal Web portal at http://www.Grants.gov. Applicants wishing to submit electronic applications through Grants.gov must follow the application procedures and submission requirements detailed on that Web site at http://www.Grants.gov. Applicants that file through Grants.gov should receive electronic confirmation from Grants.gov that their applications have been received within 48 hours of submitting the application. Grants.gov will send a second electronic message that the application has either been successfully accepted by the system for transmission to the grantor agency OR has been rejected due to errors. After the grant application deadline has passed, USDA will send an electronic confirmation acknowledging that the application has been received by the RUS from Grants.gov. Grants.gov will not accept applications for filing after the deadline has passed. The Agency will not accept applications directly over the Internet, by e-mail, or fax.
All applications for grants must be delivered to the Agency at the address listed above or postmarked no later than September 8, 2010 to be eligible. After the deadline has passed, the Agency will review each timely submitted application to determine whether it is complete and meets all of the eligibility requirements described in this NOFA.
After the application closing date, the Agency will not consider any unsolicited information from the applicant. The RUS may contact the applicant for additional information or to clarify statements in the application required to establish applicant or community eligibility and completeness. Only applications that are complete and meet the eligibility criteria will be considered. The RUS will not accept or solicit any additional information relating to the technical merits and/or economic feasibility of the grant proposal after the application closing date.
If the RUS determines that an application package was not delivered to the Agency, or postmarked on or before the deadline of September 8, 2010, the application will be rejected as untimely and returned to the applicant.
After review, the RUS will reject any application package that it determines is incomplete or that does not demonstrate that the applicant, community or project is eligible under the requirements of this NOFA and program regulations. The Assistant Administrator, Electric Programs will notify the applicant of the rejection in writing and provide a brief explanation of the reasons for rejection.
Applicants may appeal the rejection pursuant to program regulations on appeals at 7 CFR 1709.6. The appeal must be made in writing to the Agency Administrator within 10 days after the applicant is notified of the determination to reject the application. The appeal must state the basis for the appeal. Under 7 CFR 1709.6, appeals must be directed to the Administrator, Rural Utilities Service, United States Department of Agriculture, 1400 Independence Ave., SW., STOP 1500, Washington, DC 20250-1500. The Administrator will review the appeal to determine whether to sustain, reverse, or modify the original determination by the Assistant Administrator. The Administrator's decision shall be final. A written copy of the Administrator's decision will be furnished promptly to the applicant.
All applications will be scored and ranked according to the evaluation criteria and weightings described in this Notice. The evaluation criteria and weights in this NOFA differ from those used in prior NOFAs. For this reason, the ratings panel will review and revise scores of any prior applications that are being reconsidered according to the new criteria. The rating panel may revise the score upward based on any updated information submitted by the applicant. The RUS will use the ratings and recommendations of the panel to rank applicants against other applicants. All applicants will be ranked according to their scores in this round. The rankings and recommendations will then be forwarded to the Administrator for final review and selection.
Decisions on grant awards will be made by the RUS Administrator based on the application, and the rankings and recommendations of the rating panel. Start Printed Page 47766The Administrator will fund grant requests in rank order to the extent of available funds. If sufficient funds are not available to fund the next ranked project, the Administrator may, in his sole discretion, offer a partial award to the next project, or skip over that project to the next ranking project that can be supported with available funding. The Administrator may in his sole discretion, make additional awards to unfunded applications submitted under this NOFA in rank order.
The RUS will use the selection criteria described in this NOFA to evaluate and rate applications and will award points up to the maximum number indicated under each criterion. Applicants should carefully read the information on the rating criteria in this NOFA and the Application Guide and address all criteria. The maximum number of points that can be awarded is 100 points. The RUS will award up to 65 points for project design and technical merit criteria and up to 35 points based on priority criteria for project or community characteristics that support USDA Rural Development and RUS program priorities.
Reviewers will consider the soundness of the applicant's approach, the technical feasibility of the project, the adequacy of financial and other resources, the competence and experience of the applicant and its team, the project goals and objectives, and community needs and benefits. A total of 65 points may be awarded under these criteria.
1. Comprehensiveness and feasibility of approach. (Up to 30 points) Raters will assess the technical and economic feasibility of the project and how well its goals and objectives address the challenges of the extremely high energy cost community. The panel will review the proposed design, construction, equipment, and materials for the community energy facilities in establishing technical feasibility. Reviewers may propose additional conditions on the grant award to assure that the project is technically sound. Reviewers will consider the adequacy of the applicant's budget and resources to carry out the project as proposed and how the applicant proposes to manage available resources such as other grants, program income, and any other financing sources to maintain and operate a financially viable project once the grant period has ended. Reviewers may give higher scores to projects that are substantially ready to proceed with construction or implementation than to those that are early in the project development process.
2. Demonstrated experience. (Up to 10 points) Reviewers will consider whether the applicant and its project team have demonstrated experience in successfully administering and carrying out projects that are comparable to that proposed in the grant application. The RUS supports and encourages emerging organizations that desire to develop the internal capacity to improve energy services in rural communities. In evaluating the capabilities of entities without extensive experience in carrying out such projects, the Agency will consider the experience of the project team and the effectiveness of the program design in compensating for lack of extensive experience.
3. Community Needs. (Up to 15 points) Reviewers will consider the applicant's identification and documentation of eligible communities, their populations, and assessment of community energy needs to be addressed by the grant project. Information on the severity of physical and economic challenges affecting eligible communities will be considered. Reviewers will weigh: (1) the applicant's analysis of community energy challenges and (2) why the applicant's proposal presents a greater need for Federal assistance than other competing applications. In assessing the applicant's demonstration of community needs, the rating panel will consider information in the narrative proposal addressing:
(b) the hardships created by limited access to reliable and affordable energy services;
(c) the availability of other resources to support or supplement the proposed grant funding: and
(d) indications of community support for this solution to their energy challenges.
4. Project Evaluation Methods. (Up to 5 points) Reviewers will consider the applicant's plan to evaluate and report on the success and cost-effectiveness of financed activities and whether the results obtained will contribute to program improvements for the applicant or for other entities interested in similar programs.
5. Coordination with State Rural Development Initiatives. (Up to 5 points) Raters will assess how effectively the proposed project is coordinated with State rural development initiatives, if any, and is consistent with and supports these efforts. [Note: The term “State rural development initiatives” refers to State or Tribal programs and not to USDA Rural Development programs.] The RUS will consider the documentation submitted for coordination efforts, community support, and State or local government recommendations. Applicants should identify the extent to which the project is dependent on or tied to other rural development initiatives, funding, and approvals. Applicants are advised that they should address this criterion explicitly even if only to report that the project is not coordinated with or supporting a State rural development initiative. Failure to address this criterion will result in zero points awarded.
In addition to the points awarded for project design and technical merit, all proposals will be reviewed and awarded additional points based on certain characteristics of the project or the target community. USDA Rural Development Mission Area policies generally encourage agencies to give priority in their programs to rural areas of greatest need and to support other Federal policy initiatives. In furtherance of these policies, the RUS will award additional points for the priorities identified in this notice. The priority criteria and point scores used in this NOFA are consistent with the program regulations in 7 CFR part 1709. The Agency will give priority consideration to smaller rural and remote communities, areas suffering significant economic hardship, areas with inadequate community energy services, and areas where the condition of community energy facilities (or absence thereof) presents an imminent hazard to public health or safety. Priority points will also be awarded for proposals that include cost sharing. A maximum of 35 total points may be awarded under these priority criteria.
1. Economic Hardship. (Up to 15 points) The community experiences one or more economic hardship conditions that impair the ability of the community and/or its residents to provide basic energy services or to reduce or limit the costs of these services. Economic hardship will be assessed using either the objective measure of county median income under Option A below or subjectively under Option B based on the applicant's description of the community's economic hardships and Start Printed Page 47767supporting materials. Applicants may elect either measure, but not both.
a. Option A. Economically Distressed Communities (up to 15 points). The target community is an economically distressed county or Indian reservation where the median household income is significantly below the State average. Points will be awarded based on the county percentage of State median household income (or reservation percentage of State median household income in the case of Federally recognized Indian reservations) according to the following:
(5) Over 95 percent of the State median household income, 0 points
Note on Alternative Economic Data for Eligible Insular Areas:
RUS recognizes that comparable economic and household income information may not be available for eligible areas that are not States. Applicants from these areas should provide any public information that is readily available on territorial or national median household income and local community economic characteristics and other indication of economic challenge posed by extremely high energy costs. Applications from these areas will be scored under Option B “Other Economic Hardship.”
b. Option B. Other Economic Hardship (up to 15 points). The community suffers from other conditions creating a severe economic hardship that is adequately described and documented by the applicant. Examples include but are not limited to natural disasters, financially distressed local industry, and loss of major local employer, persistent poverty, outmigration, or other conditions adversely affecting the local economy, or contributing to unserved or underserved energy infrastructure needs that affect the economic health of the community. Applications from eligible areas that are not States will be scored under this alternative using information provided in the Application. The rating panel may assign points under this criterion, in lieu of awarding points based on the percentage of median household income
2. Rurality. (Up to 14 points) Consistent with the USDA Rural Development policy to target resources to rural communities with significant needs and recognizing that smaller and remote communities are often comparatively disadvantaged in seeking assistance, reviewers will award additional points based on the rurality (as measured by population) of the target communities to be served with grant funds under one of two options below.
a. Option A. Applications from the Fifty States, Puerto Rico, and the Virgin Islands. Applications from any one of the fifty States, Puerto Rico, or the U.S. Virgin Islands will be scored based on the population of the largest incorporated cities, towns, or villages, or census designated places included within the grant's proposed target area. Points will be awarded on the population of the largest target community within the proposed target area as follows:
(E) Between 15, 001 and 20,000, inclusive, 2 points; and
b. Option B. Alternative Rurality Scoring for Applications from Pacific Insular Areas. The priority scoring criteria are intended to carry out Rural Development policy to give priority to areas most challenged by extremely high energy costs and those without access to substantial alternative economic and institutional resources to address these challenges, particularly rural, remote, and substantially-underserved areas. The original priority scoring criteria were established using Census data for population and economic characteristics as proxy measures for rurality, remoteness, and economic challenges. As the program has been implemented, it became evident that comparable U.S. Census population information is often not easily available or unavailable for communities in Pacific insular areas. Moreover, reliance on population as proxy for remoteness and the difficulties in addressing energy challenges did not adequately capture the impacts of vast distances of open ocean separating these insular areas. After consideration, the RUS has decided to adopt an alternative for scoring eligible applications from Pacific insular areas. Accordingly, effective with this NOFA, the RUS will assign a rurality score of “14” to applications from eligible insular areas in the Pacific. This policy will place these applications on an equal footing with competing applications from other rural and remote areas.
3. Unserved Energy Needs (2 points) Consistent with the purposes of the RE Act, projects that meet unserved or underserved energy needs will be eligible for 2 points. Examples of proposals that may qualify under this priority include projects that extend or improve electric or other energy services to communities and customers that do not have reliable centralized or commercial service or where many homes remain without such service because the costs are unaffordable.
4. Imminent hazard (2 points) If the grant proposal involves a project to correct a condition posing an imminent hazard to public safety, welfare, the environment, or to a critical community or residential energy facility, raters may award 2 points. Examples include community energy facilities in immediate danger of failure because of deteriorated condition, capacity limitations, damage from natural disasters or accidents, or other conditions where impending failure of existing facilities or absence of energy facilities creates a substantial threat to public health or safety, or to the environment.
5. Cost Sharing (2 points) This grant program does not require any cost contribution. In addition to their assessment of the economic feasibility and sustainability of the project under the project evaluation factors above, raters may award 2 points for cost sharing. These points will be awarded when the proposal documents supplemental contributions of funds, property, equipment, services, or other in kind contributions for the project evidencing the applicant's and/or community's commitment to the project that taken together exceed 10 percent of the total project costs. The applicant must be able to supply written confirmation of the availability of the offered cost share on Agency request or the points will be disallowed. The applicant must specifically request additional points for cost sharing.Start Printed Page 47768
Following any adjustments to the project rankings as a result of reconsideration, the Administrator will select projects for funding in rank order. If funds remain after funding the highest ranking application, the Agency may fund all or part of the next highest ranking application. The RUS will advise an applicant if it cannot fully fund a grant request and ask whether the applicant will accept a reduced award.
The Administrator may decide based on the recommendations of the rating panel or in his sole discretion that a grant award may be made fully or partially contingent upon the applicant satisfying certain conditions or providing additional information and analyses. For example, the Agency may defer approving a final award to a selected pro ject—such as projects requiring more extensive environmental review and mitigation, preparation of detailed site specific engineering studies and designs, or requiring local permitting, or availability of supplemental financing—until any additional conditions are satisfied. In the event that a selected applicant fails to comply with the additional conditions within the time set by the Agency, the selection will be vacated and the next ranking project will be considered.
If a selected applicant turns down a grant award offer, or fails to conclude a grant agreement acceptable to the RUS, or to provide required information requested by the Agency within the time period established in the notification of selection for grant award, the Administrator may select for funding the next highest ranking application submitted in response to this NOFA. If sufficient funds are not available to fund the next ranked project, the Administrator may in his sole discretion, offer a partial award to the next project, or skip over that project to the next ranking project that can be supported with available funding. The Administrator may in his sole discretion, make additional awards to unfunded applications submitted under this NOFA in rank order as provided above.
The RUS will notify each applicant in writing whether or not it has been selected for an award. The RUS written notice to a successful applicant of the amount of the grant award based on the approved application will constitute the Agency's preliminary acceptance of a project for an award, subject to compliance with all post-selection requirements including but not limited to completion of any environmental reviews and negotiation and execution of a grant agreement satisfactory to the RUS. This preliminary acceptance does not bind the Government to making a final grant award. Only a final grant award and agreement executed by the Administrator will constitute a binding obligation and commitment of Federal funds. Funds will not be awarded or disbursed until all requirements have been satisfied and are contingent on the continued availability of funds at the time of the award. The RUS will advise selected applicants of additional requirements or conditions.
The RUS reserves the right to fund less than the full amount requested in a grant application to ensure the fair distribution of the funds and to ensure that the purposes of a specific program are met. The Agency will not fund any portion of a grant request that is not eligible for funding under Federal statutory or regulatory requirements, that does not meet the requirements of this NOFA, or that may duplicate other RUS-funded activities, including electric loans. Only the eligible portions of a successful grant application will be funded.
(b) The minimum amount sufficient to provide for the economic feasibility of the project as determined by the RUS.
The RUS will notify all applicants in writing whether they have been selected for an award. Successful applicants will be advised in writing of their selection as award finalists. Successful applicants will be required to negotiate a grant agreement acceptable to the Agency and complete additional grant forms and certifications required by USDA as part of the pre-award process.
Depending on the nature of the activities proposed by the application, the grantee may be asked to provide information and certifications necessary for compliance with the RUS environmental policy regulations and procedures for Electric Programs at 7 CFR part 1794. Following completion of the environmental review, selected applicants will receive a letter of conditions establishing any project-specific conditions to be included in the grant agreement and asked to execute a letter of intent to meet the grant conditions or to detail why such conditions can't be met and to propose alternatives. Grant funds will not be advanced unless and until the applicant has executed a grant agreement acceptable to the RUS.
The RUS will require each successful applicant to agree to the specific terms of each grant agreement, a project budget, and other program requirements. In cases where the Agency cannot successfully conclude negotiations with a selected applicant or a selected applicant fails to provide requested information within the time specified, an award will not be made to that applicant. The selection will be revoked and the Agency may offer an award to the next highest ranking applicant, and proceed with negotiations with the next highest ranking applicant, subject to the availability of funds.
If the proposed grant project involves physical development activities or property acquisition, the applicant is generally prohibited from acquiring, rehabilitating, converting, leasing, Start Printed Page 47769repairing or constructing property or facilities, or committing or expending Agency or non-Agency funds for proposed grant activities until the RUS has completed any environmental review in accordance with 7 CFR part 1794 or determined that no environmental review is required. Successful applicants will be advised whether additional environmental review and requirements apply to their proposals.
Certain Office of Management and Budget (OMB) circulars also apply to USDA grant programs and must be followed by a grantee under this program. The policies, guidance, and requirements of the following, or their successors, may apply to the award, acceptance and use of assistance under this program and to the remedies for noncompliance, except when inconsistent with the provisions of the Agriculture, Rural Development and Related Agencies Appropriations Acts, other Federal statutes or the provisions of this NOFA:
The Agency Contact for this grant announcement is Karen Larsen, Management Analyst, Rural Utilities Service, Electric Programs, United States Department of Agriculture, 1400 Independence Avenue, SW., STOP 1560, Room 5165 South Building, Washington, DC 20250-1560. Telephone 202-720-9545, Fax 202-690-0717, e-mail Karen.Larsen@wdc.usda.gov.
[FR Doc. 2010-19509 Filed 8-6-10; 8:45 am]