Assistance to High Energy Cost Communities

The Rural Utilities Service (RUS), an agency of the United States Department of Agriculture (USDA) announces the availability of up to $10 million in competitive grants to assist communities with extremely high energy costs. The grant funds may be used to acquire, construct, or improve energy generation, transmission, or distribution facilities serving communities where the average annual residential expenditure for home energy exceeds 275% of the national average. Eligible projects also include on-grid and off-grid renewable energy projects and the implementation of energy efficiency and energy conservation projects for eligible communities. Projects cannot be for the primary benefit of a single household or business. Grant funds may not be used for the preparation of the grant application, operating costs, or for the purchase of any equipment, structures, or real estate not directly associated with the provision of community energy services.

Grants are for projects that serve an eligible community; grants are not for the benefit of individuals or a single business. Individuals may apply on behalf of entities not yet incorporated but award will not be made directly to individuals. Applicants must be located in the United States, 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.