[Federal Register Volume 77, Number 125 (Thursday, June 28, 2012)]
[Notices]
[Pages 38570-38580]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-15906]


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DEPARTMENT OF AGRICULTURE

Rural Utilities Service


Announcement of Grant Application Deadlines and Funding Levels 
for the Assistance to High Energy Cost Rural Communities

AGENCY: Rural Utilities Service, USDA.

ACTION: Notice of funding availability (NOFA).

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SUMMARY: The Rural Utilities Service (RUS), an agency of the United 
States Department of Agriculture (USDA), announces the availability of 
up to $7 million in Fiscal Year 2012 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 RUS 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.rurdev.usda.gov/UEP_Our_Grant_Programs.html. You may also request the Application Guide and materials 
from RUS by contacting the individual listed in the FOR FURTHER 
INFORMATION CONTACT section of this notice.

DATES: You may submit completed grant applications on paper or 
electronically according to the following deadlines:
     Paper applications must be postmarked and mailed, shipped, 
or sent overnight, no later than July 30, 2012, or hand delivered to 
RUS by this deadline, to be eligible under this NOFA. Late or 
incomplete applications will not be eligible for FY 2012 grant funding.
     Electronic applications must be submitted through 
Grants.gov no later than midnight July 30, 2012 to be eligible under 
this NOFA for FY 2012 grant funding. Late or incomplete electronic 
applications will not be eligible.
     Applications will not be accepted by electronic mail.
    Applications will be accepted upon publication of this notice until 
midnight (EST) of the closing date of July 30, 2012.

[[Page 38571]]


ADDRESSES: You may submit completed applications for grants on paper or 
electronically to the following addresses:
     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.''
     Applications may be submitted electronically through 
Grants.gov. Information on how to submit applications electronically is 
available on the Grants.gov Web site (http://www.Grants.gov).
    Application Guides and materials may be obtained electronically 
through: http://www.rurdev.usda.gov/UEP_Our_Grant_Programs.html. 
Call the RUS Electric Programs at (202) 720-9545 to request paper 
copies of Application Guides and other materials.

FOR FURTHER INFORMATION CONTACT: Kristi Kubista-Hovis, Senior Policy 
Advisor, 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, email [email protected].

SUPPLEMENTARY INFORMATION: 

Overview Information

    Federal Agency Name: United States Department of Agriculture, Rural 
Utilities Service.
    Funding Opportunity Title: Assistance to High Energy Cost Rural 
Communities.
    Announcement Type: Initial announcement.
    Funding Opportunity Number: RD- RUS-HECG12.
    Catalog of Federal Domestic Assistance (CFDA) Number: 10.859. The 
CFDA title for this program is ``Assistance to High Energy Cost Rural 
Communities.''
    Dates: Applications must be postmarked and mailed or shipped, or 
hand delivered to the RUS, or filed with Grants.gov by July 30, 2012.

I. Funding Opportunity Description

    The Rural Utilities Service (RUS) is making available up to $7 
million in competitive grants under section 19 of the Rural 
Electrification Act of 1936 (the ``RE Act'') (7 U.S.C. 918a)., $2.5 
million has been awarded to the Denali Commission.
    This NOFA announces the availability of fiscal year 2012 grant 
funds, and provides an overview of the grant program, the eligibility 
and application requirements, and selection criteria for grant 
proposals. This NOFA specifies the high energy cost eligibility 
benchmarks and scoring criteria for fiscal year 2012 grants. 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 RUS Web site at: http://www.rurdev.usda.gov/UEP_Our_Grant_Programs.html. 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.

Definitions

    Consult the program regulations at 7 CFR part 1709 and the 
Application Guide for additional definitions used in this program. As 
used in this NOFA:
    Agency means the Rural Utilities Service (RUS) of the United States 
Department of Agriculture.
    Application Guide means the Application Guide prepared by RUS for 
the High Energy Cost Grant program containing detailed instructions for 
preparing grant applications, and copies of required forms, 
questionnaires, and model certifications.
    Area means the geographic area to be served by the grant.
    Community means the unit or units of local government in which the 
area is located.
    Extremely high energy costs means community average residential 
energy costs that meet or exceed one or more home energy cost 
benchmarks established 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.
    Home energy means any energy source or fuel used by a household for 
purposes other than transportation, including electricity, natural gas, 
fuel oil, kerosene, liquefied petroleum gas (propane), other petroleum 
products, wood and other biomass fuels, coal, wind, and solar energy. 
Fuels used for subsistence activities in remote rural areas are also 
included.
    High energy cost benchmarks means the criteria established by the 
Administrator for eligibility as an extremely high energy cost 
community. Home energy cost benchmarks are calculated for total annual 
household energy expenditures; total annual expenditures for individual 
fuels; annual average per unit energy costs for primary home energy 
sources and are set at 275 percent of the relevant national average 
household energy expenditures.
    Indian Tribe means a Federally recognized Tribe as defined under 
section 4 of the Indian Self-Determination and Education Assistance Act 
(25 U.S.C. 450b) to include ``* * * any Indian Tribe, band, nation, or 
other organized group or community, including any Alaska Native village 
or regional or village corporation as defined in or established 
pursuant to the Alaska Native Claims Settlement Act [43 U.S.C. 1601 et 
seq.], that is recognized as eligible for the special programs and 
services provided by the United States to Indians because of their 
status as Indians.''
    Person means any natural person, firm, corporation, association, or 
other legal entity, and includes Indian Tribes and Tribal entities.
    Primary home energy source means the energy source that is used for 
space heating or cooling, water heating, cooking, and lighting. A 
household or community may have more than one primary home energy 
source.
    State rural development initiative means a rural economic 
development program funded by or carried out in cooperation with a 
State agency or Indian Tribe.
    Tribal entity means a legal entity that is owned, controlled, 
sanctioned, or chartered by the recognized governing body of an Indian 
Tribe.

II. Award Information

    The total amount of funds available for High Energy Cost grants in 
Fiscal Year 2012 under this notice is $7 million. The maximum amount of 
grant assistance that will be awarded for funding in a grant 
application under this notice is $3,000,000. The minimum amount of 
assistance for a grant application under this program is $20,000. The 
number of grants awarded under this NOFA will depend on the number of 
complete applications submitted, the amount of grant funds requested, 
the quality and competitiveness of applications submitted, and the 
availability of funds. Applicants are limited to one award in any 
fiscal year. No funding is available for education and outreach.
    The funding instrument available under this NOFA will be a grant 
agreement. Grants awarded under this notice must comply with all 
applicable

[[Page 38572]]

USDA and Federal regulations applicable to 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 
RUS 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 and period of performance will be 
from 1-3 years. Grant agreements will not be negotiated.
    Applicants must provide a narrative grant proposal prepared 
according to the instructions in this NOFA and application guide, along 
with all required forms and information in order to submit a complete 
application.
    No application submitted through a prior High Energy Cost Grant 
NOFA will be considered for 2012 funding. All prior applicants must 
resubmit a new application to be considered for funding under this 
NOFA. There will be no exceptions.
    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 RUS 
Administrator is the Federal Selection official of the competitive 
awards. The Administrator will review the rankings and the 
recommendations of the rating panel. The Administrator will then fund 
grant applications in rank order to the extent of available funds.
    The RUS reserves the right not to award all the funds made 
available under this notice. RUS anticipates making multiple awards. 
Applicants should take proper care in preparing the project's scope and 
cost estimate. The proposed scope and cost will not be negotiated.

III. Eligibility Information

1. Eligible Applicants

    Under Section 19 eligible applicants include ``Persons, States, 
political subdivisions of States, and other entities organized under 
the laws of States'' (7 U.S.C. 918a). Under section 13 of the RE Act, 
the term ``Person'' means ``any natural person, firm, corporation, or 
association'' (7 U.S.C. 913). Examples of eligible business applicants 
include: for-profit and non-profit business entities, including but not 
limited to corporations, associations, partnerships, limited liability 
partnerships (LLPs), cooperatives, trusts, and sole proprietorships. 
Eligible government applicants include State and local governments, 
counties, cities, towns, boroughs, or other agencies or units of State 
or local governments; and other agencies and instrumentalities of 
States and local governments. Indian Tribes, other Tribal entities and 
Alaska Native Corporations are also eligible applicants.
    An individual is an eligible applicant under this program; however, 
the proposed grant project must provide community benefits and not be 
for the sole benefit of an individual applicant or an individual 
household or business.
    All applicants must demonstrate the legal capacity of the applicant 
to execute a binding grant agreement with the Federal Government at the 
time of the award and to carry out the proposed grant funded project 
according to its terms.
    Corporations that have been convicted of a felony (or had an 
officer or agency acting on behalf of the corporation convicted of a 
felony) within the past 24 months are not eligible. Any Corporation 
that has any unpaid federal tax liability that has been assessed, for 
which all judicial and administrative remedies have been exhausted or 
have lapsed, and that is not being paid in a timely manner pursuant to 
an agreement with the authority responsible for collecting the tax 
liability, is not eligible.
    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 when applying. Consistent with this 
Federal policy directive, 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.
    In accordance with 2 CFR part 25, applicants, whether applying 
electronically or by paper, must be registered in the CCR prior to 
submitting an application. Applicants may register for the CCR at 
https://www.uscontractorregistration.com/ or by calling 1-877-252-2700. 
Completing the CCR registration process takes up to five business days, 
and applicants are strongly encouraged to begin the process well in 
advance of the deadline specified in this notice.
    The CCR registration must remain active, with current information, 
at all times during which an entity has an application under 
consideration by an agency or has an active Federal Award. To remain 
registered in the CCR database after the initial registration, the 
applicant is required to review and update, on an annual basis from the 
date of initial registration or subsequent updates, its information in 
the CCR database to ensure it is current, accurate and complete.

2. Cost Sharing and Matching

    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 proposed 
project successfully include such contributions. If a successful 
applicant proposes to use matching funds or other cost contributions in 
its project, the grant agreement will include conditions requiring 
documentation of the availability of the matching funds and actual 
expenditure of matching funds or cost contributions. RUS 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, decline to award the project if 
uncertainties over availability of the match render the project 
financially unfeasible and impose additional conditions.

3. Other Eligibility Requirements

A. Eligible Projects
    Grantees must use grant funds for eligible grant purposes. Grant 
funds may be used to acquire, construct, extend, upgrade, or otherwise 
improve energy generation, transmission, or distribution facilities 
serving eligible communities. All energy generation, transmission, and 
distribution facilities and equipment,

[[Page 38573]]

used to provide electricity, natural gas, home heating fuels, and other 
energy service to eligible communities are eligible. Projects providing 
or improving energy services to eligible communities through on-grid 
and off-grid renewable energy projects, energy efficiency, and energy 
conservation projects are eligible. A grant project is eligible if it 
improves, or maintains energy services, or reduces the costs of 
providing energy services to eligible communities. Grant funds may not 
be used to pay utility bills or to purchase fuels. Grants may cover up 
to the full costs of any eligible projects subject to the statutory 
condition that no more than 4 percent of grant funds may be used for 
the planning and administrative expenses of the grantee. The program 
regulations at 7 CFR part 1709 provide more detail on allowable uses of 
grant funds, limitations on grant funds, and ineligible grant purposes. 
The project must serve communities that meet the extremely high energy 
cost eligibility requirements described in this NOFA. The applicant 
must demonstrate that the proposed project will benefit the eligible 
communities. Projects that primarily benefit a single household or 
business are not eligible. Additional information and examples of 
eligible project activities are contained in the Application Guide.
    Grant funds cannot be used for: Preparation of the grant 
application, fuel purchases, routine maintenance or other operating 
costs, and purchase of equipment, structures, or real estate not 
directly associated with provision of residential energy services. In 
general, grant funds may not be used to support projects that primarily 
benefit areas outside of eligible communities. However, grant funds may 
be used to finance an eligible community's proportionate share of a 
larger energy project. Grant funds may not be used to refinance or 
repay the applicant's outstanding loans or loan guarantees under the 
Rural Electrification Act of 1936, as amended.
    Each grant applicant must demonstrate the economic and technical 
feasibility of its proposed project. Activities or equipment that would 
commonly be considered as research and development activities, or 
commercial demonstration projects for new energy technologies will not 
be considered as technologically feasible projects and would, thus, be 
ineligible grant purposes. However, grant funds may be used for 
projects that involve the innovative use or adaptation of energy-
related technologies that have been commercially proven. RUS, in its 
sole discretion, will determine if a project relies on unproven 
technology, and that determination shall be final.
B. Eligible Communities
    The grant project must benefit communities with extremely high 
energy costs. The RE Act defines an extremely high energy cost 
community as one in which ``the average residential expenditure for 
home energy is at least 275 percent of the national average residential 
expenditure for home energy'' 7 U.S.C. 918a. The benchmarks are set 
based on the latest available information from the Energy Information 
Administration (EIA) residential energy surveys.
    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. RUS 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. Applicants must demonstrate that proposed 
communities must meet one or more high energy cost benchmarks to 
qualify as an eligible beneficiary of a grant under this program. All 
applications must meet these current eligibility benchmarks for high 
energy. Based on available published information on residential energy 
costs, RUS anticipates that only those communities with the highest 
energy costs across the country will qualify.
    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:

    Table 1--National Average Annual Household Energy Expenditures and Extremely High Energy Cost Eligibility
                    Benchmarks Effective for Applications Submitted on or After June 28, 2012
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                                                                   EIA 2005 national        RUS extremely high
                                                                     annual average       energy cost benchmark
                             Fuel                                household expenditure       275% of national
                                                                       $ per year           average $ per year
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                                      Average Annual Household Expenditure
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Electricity...................................................                    1,123                    3,010
Natural Gas...................................................                      754                    1,988
Fuel Oil......................................................                    1,518                    3,921
LPG/Propane...................................................                      875                    2,256
Total Household Energy Use....................................                    1,810                    4,860
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                                                                                            RUS extremely high
                                                                   EIA 2005 national      energy cost benchmark
                         Fuel (units)                             average unit cost  $       275% of national
                                                                        per unit           average  $ per unit
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                                Annual Average per Unit Residential Energy Costs
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Electricity (kilowatt hours)..................................                     0.10                    0.264
Natural Gas (thousand cubic feet).............................                    11.24                   30.30
Fuel Oil (gallons)............................................                     2.04                    5.54
LPG/Propane (gallons).........................................                     1.92                    5.10

[[Page 38574]]

 
Total Household Energy (million Btus).........................                    19.07                   51.62
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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.

    Extremely high energy costs in rural and remote communities 
typically result from a combination of factors including high energy 
consumption, high per unit energy costs, limited availability of energy 
sources, extreme climate conditions, and housing characteristics. The 
relative impacts of these conditions exhibit regional and seasonal 
diversity. Market factors have created an additional complication in 
recent years as the prices of the major commercial residential energy 
sources--electricity, fuel oil, natural gas, and LPG/propane-- have 
fluctuated dramatically in some areas.
    The applicant must demonstrate that each community in the grant 
project's proposed area exceeds one or more of these high energy cost 
benchmarks to be eligible for a grant under this program.
i. High Energy Cost Benchmarks
    The benchmarks measure extremely high energy costs for residential 
consumers. These benchmarks were calculated using EIA's estimates of 
national average residential energy expenditures per household and by 
primary home energy source. The benchmarks recognize the diverse 
factors that contribute to extremely high home energy costs in rural 
communities. The benchmarks allow extremely high energy cost 
communities several alternatives for demonstrating eligibility. 
Communities may qualify based on: Total annual household energy 
expenditures; total annual expenditures for commercially-supplied 
primary home energy sources, i.e., electricity, natural gas, oil, or 
propane; or average annual per unit home energy costs. By providing 
alternative measures for demonstrating eligibility, the benchmarks 
reduce the burden on potential applicants created by the limited public 
availability of comprehensive data on local community energy 
consumption and expenditures.
    A community or area will qualify as an extremely high cost energy 
community if it meets one or more of the energy cost eligibility 
benchmarks described below.
    a. Extremely High Average Annual Household Expenditure for Home 
Energy. The area or community exceeds one or more of the following:
     Average annual residential electricity expenditure of 
$3,010 per household;
     Average annual residential natural gas expenditure of 
$1,988 per household;
     Average annual residential expenditure on fuel oil of 
$3,921 per household;
     Average annual residential expenditure on propane or 
liquefied petroleum gas (LPG) as a primary home energy source of $2,256 
per household; or
     Average annual residential energy expenditure (for all 
non-transportation uses) of $4,860 per household.
    b. Extremely High Average per unit energy costs. The average 
residential per unit cost for major commercial energy sources in the 
area or community exceeds one or more of the following:
     Annual average revenues per kilowatt hour for residential 
electricity customers of $0.264 per kilowatt hour (kWh);
     Annual average residential natural gas price of $30.30 per 
thousand cubic feet;
     Annual average residential fuel oil price of $5.54 per 
gallon;
     Annual average residential price of propane or LPG as a 
primary home energy source of $5.10 per gallon; or
     Total annual average residential energy cost on a Btu 
basis of $51.62 per million Btu.\1\
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    \1\ Note: Btu is the abbreviation for British thermal unit, a 
standard energy measure. A Btu is the quantity of heat needed to 
raise the temperature of one pound of water 1 degree Fahrenheit at 
or near 39.2 degrees Fahrenheit.
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ii. Supporting Energy Cost Data
    The applicant must include information that demonstrates its 
eligibility under RUS's high energy cost benchmarks for the communities 
and areas. The applicant must supply documentation or references for 
its sources for actual or estimated home energy expenditures or 
equivalent measures to support eligibility. Generally, the applicant 
will be expected to use historical residential energy cost or 
expenditure information for the local energy provider serving the 
community or area to determine eligibility. Other potential sources of 
home energy related information include Federal and State agencies, 
local community energy providers such as electric and natural gas 
utilities and fuel dealers, and commercial publications. The 
Application Guide includes a list of EIA resources on residential 
energy consumption and costs that may be of assistance.
    The grant applicant must establish eligibility for each community 
in the project's area. To determine eligibility, the applicant must 
identify each community included in whole or in part within the areas 
and provide supporting actual or estimated energy expenditure data for 
each community. The smallest area that may be designated as an area is 
a 2010 Census block. This minimum size is necessary to enable a 
determination of population size.
    Potential applicants can compare the benchmark criteria to 
available information about local energy use and costs to determine 
their eligibility. Applicants should demonstrate their eligibility 
using historical energy use and cost information. Where such 
information is unavailable or does not adequately reflect the actual 
costs of supporting average home energy use in a local community, RUS 
will consider estimated commercial energy costs. The Application Guide 
includes examples of circumstances where estimated energy costs are 
used.
    EIA does not collect or maintain data on home energy expenditures 
in sufficient detail to identify specific rural localities as extremely 
high energy cost communities. Therefore, grant applicants will have to 
provide information on local community energy costs from other sources 
to support their applications.
    In many instances, historical community energy cost information can 
be obtained from a variety of public sources or from local utilities 
and other energy providers. For example, EIA publishes monthly and 
annual reports of residential prices by State and by service area for 
electric utilities and larger natural gas distribution companies. 
Average residential fuel oil

[[Page 38575]]

and propane prices are reported regionally and for major cities by 
government and private publications. Many State agencies also compile 
and publish information on residential energy costs to support State 
programs.
iii. Use of Estimated Home Energy Costs
    Where historical community energy cost data are incomplete or 
lacking or where community-wide data do not accurately reflect the 
costs of providing home energy services in the area, the applicant may 
substitute estimates based on engineering standards. The estimates 
should use available community, local, or regional data on energy 
expenditures, consumption, housing characteristics and population. 
Estimates are also appropriate where the area does not presently have 
centralized commercial energy services at a level that is comparable to 
other residential customers in the State or region. For example, local 
commercial energy cost information may not be available where the area 
is without local electric service because of the high costs of 
connection. Engineering cost estimates reflecting the incremental costs 
of extending service could reasonably be used to establish eligibility 
for areas without grid-connected electric service. Estimates also may 
be appropriate where historical energy costs do not reflect the costs 
of providing a necessary upgrade or replacement of energy 
infrastructure to maintain or extend service that would raise costs 
above one or more benchmarks. Information to support high energy cost 
eligibility is subject to independent review by RUS. Applications that 
contain information that is not reasonably based on credible sources of 
information and sound estimates will be rejected. Where appropriate, 
RUS may consult standard sources to confirm the reasonableness of 
information and estimates provided by an applicant in determining 
eligibility, technical feasibility, and adequacy of proposed budget 
estimates.
C. Limitations on Grant Awards
i. Statutory Limitation on Planning and Administrative Expenses
    Section 19 of the RE Act provides that no more than 4 percent of 
the grant funds for any project may be used for the planning and 
administrative expenses of the grantee that are not directly related to 
the grant project.
ii. Ineligible Grant Purposes
    Grant funds cannot be used for: Preparation of the grant 
application, fuel purchases, routine maintenance or other operating 
costs, and purchase of equipment, structures, or real estate not 
directly associated with provision of residential energy services. In 
general, grant funds may not be used to support projects that primarily 
benefit areas outside of eligible communities. However, grant funds may 
be used to finance an eligible community's proportionate share of a 
larger energy project.
    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 
specific 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 
applicant 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 
from RUS or grant other sources. The determination of whether a project 
will be completed in this manner will be made solely by the 
Administrator.
iii. Maximum and Minimum Awards
    The maximum amount of grant assistance that will be considered for 
funding per grant application under this notice is $3,000,000. The 
minimum amount of assistance for a competitive grant application under 
this program is $20,000.

IV. Application and Submission Information

    All applications must be prepared and submitted in compliance with 
this NOFA and the Application Guide. The Application Guide contains 
additional information on the grant program, sources of information for 
use in preparing applications, examples of eligible projects, and 
copies of the required application forms.

1. Address To Request an Application Package

    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.rurdev.usda.gov/UEP_Our_Grant_Programs.html.
    Application packages, including required forms, may be also be 
requested from: Kristi Kubista-Hovis, Senior Policy Advisor, United 
States Department of Agriculture, Rural Development Utilities Programs, 
Electric Program, 1400 Independence Avenue SW., STOP 1560, Room 5165, 
South Building, Washington, DC 20250- 1560. Telephone 202-720-9545, Fax 
202-690-0717, email [email protected].

2. Content and Form of Application Submission

    Applicants must 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.
A. Application Contents
    Applicants must submit the following information for the 
application to be complete and considered for funding:
    i. Formatting and length of application. All applications must be 
on single sided pages and all pages must be numbered. Only numbered 
pages will be reviewed. All applications are limited to the page limits 
specified by each section in this NOFA. Any additional pages greater 
than what is specified in this NOFA will not be reviewed and 
considered.
    ii. 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 RUS's Web site or 
through Grants.gov, or by request from the RUS contact listed above.
    iii. Part B. Grant Eligibility (3 pages total). The Grant 
Eligibility is a narrative section that establishes the applicant's 
eligibility.
    a. Project Abstract and Eligibility. This section provides a 
summary of the proposed project. The project must be described in 
sufficient detail to establish that it is an eligible project according 
to this NOFA.
    b. Applicant Eligibility. This section includes a narrative 
statement that identifies the applicant and supporting evidence 
establishing that the applicant has or will have the legal authority to

[[Page 38576]]

enter into a financial assistance relationship with the Federal 
Government. Applicants must also be free of any debarment or other 
restriction on their ability to contract with the Federal government. 
Corporations that have been convicted of a felony (or had an officer or 
agency acting on behalf of the corporation convicted of a felony) 
within the past 24 months are not eligible. Any Corporation that has 
any unpaid federal tax liability that has been assessed, for which all 
judicial and administrative remedies have been exhausted or have 
lapsed, and that is not being paid in a timely manner pursuant to an 
agreement with the authority responsible for collecting the tax 
liability is not eligible.
    3. Community Eligibility. This section provides a narrative 
description of the community or communities to be served by the project 
and supporting information to establish eligibility. The narrative must 
show that the proposed grant project's area or areas are located in one 
or more communities where the average residential energy costs exceed 
one or more of the benchmark criteria for extremely high energy costs 
as described in this NOFA. The narrative should clearly identify the 
location and population of the areas to be aided by the grant project 
and their energy costs and the population of the local government 
division in which they are located. Local energy providers and sources 
of high energy cost data and estimates should be clearly identified. 
Neither the applicant nor the project must be physically located in the 
extremely high energy cost community, but the funded project must serve 
an eligible community. The population estimates should be based on the 
results of the 2010 Census available from the U.S. Census Bureau. 
Additional information and exhibits supporting eligibility may include 
maps, summary tables, and references to statistical information from 
the U.S. Census, the Energy Information Administration, other Federal 
and State agencies, or private sources. The Application Guide includes 
additional information and sources that the applicant may find useful 
in establishing community eligibility.
    iv. Part C. Grant Proposal (maximum of 30 pages). The grant 
proposal is a narrative description prepared by the applicant that 
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.
    a. Executive Summary (1 page). The Executive Summary is a one page 
narrative summary that: (a) Identifies the applicant, project title, 
and the key contact person with telephone and fax numbers, mailing 
address and email address; (b) specifies the amount of grant funds 
requested; and (c) provides a brief description of the proposed project 
including the eligible rural communities and residents to be served, 
activities and facilities to be financed, and how the grant project 
will offset or reduce the community's extremely high energy costs.
    b. Project Needs (2 pages). This section is a narrative that 
describes the needs of the community; identifying if it is deemed an 
economic hardship community or if the community is facing an imminent 
hazard. A community facing economic hardship is defined as a situation 
where the 2000 median household income for the community is 20 percent 
below the State average or where the community suffers from economic 
conditions that severely constrain its ability to provide or improve 
energy facilities serving the community. Projects focused in correcting 
an imminent hazard are defined as projects that will correct a 
condition posing an imminent hazard to public safety, public welfare, 
the environment, or to a critical community or residential energy 
facility in immediate danger of failure because of a deteriorated 
condition, capacity limitation, or damage from a natural disaster or 
accident. Applicants must describe in detail and document conditions 
creating severe community economic hardship or imminent hazard in the 
proposal.
    c. Project Description (Design) (5 pages): This section must 
provide a narrative description of the project including a proposed 
scope of work identifying major tasks and proposed schedules for task 
completion, a detailed description of the equipment, facilities and 
associated activities to be financed with grant funds, the location of 
the eligible extremely high energy cost communities to be served, and 
an estimate of the overall duration of the project. The Project Design 
description should be sufficiently detailed to support a finding of 
technical feasibility. Proposed projects involving construction, 
repair, replacement, or improvement of electric generation, 
transmission, and distribution facilities must generally be consistent 
with the standards and requirements for projects financed with loans 
and loan guarantees under the RE Act as set forth in RUS's Electric 
Programs Regulations and Bulletins and may reference these 
requirements.
    d. Project Goals and Objectives and Project Performance Measures (2 
pages): The applicant should clearly identify how the project addresses 
the energy needs of the community and include appropriate measures of 
project success such as, for example, expected reductions in household 
or community energy costs, avoided cost increases, enhanced 
reliability, or economic or social benefits from improvements in energy 
services available to the community. The applicant should include 
quantitative estimates of cost or energy savings and other benefits. 
The applicant should provide documentation or references to support its 
statements about cost-effectiveness savings and improved services. The 
applicant should also describe how it plans to measure and monitor the 
effectiveness of the program in delivering its projected benefits.
    e. Project Management (8 pages): This section must provide a 
narrative describing the applicant's capabilities and project 
management plans. The description should be broken down into the 
following subsections:
    1. Management Plan and Schedule (2 pages). This subsection should 
include the application's organizational structure, method of funding, 
if the applicant proposes to use affiliated entities, and production 
schedule in implementing the grant award. If the applicant proposes to 
secure equipment, design, construction, or other services from non-
affiliated entities, the applicant must briefly describe how it plans 
to procure and/or contract for such equipment or services. The 
applicant should provide information that will support a finding that 
the combination of management team's experience, financial management 
capabilities, resources and project structure will enable successful 
completion of the project.
    A. Project Reporting Plan (2 pages). This subsection should provide 
a detailed description of the reporting requirements as well as 
consequences if the project falls behind.
    B. Relevant Organizational Experience (2 pages). This subsection 
should include a detailed description of the organization that will 
install or implement the proposed projects. Information on success 
rates, past project long term viability, and consumer complaints are 
required. If the applicant has received any HECG funding, or other 
Federal funding a detailed description of past performance is required 
in this section.
    C. Key Staff Experience (2 pages). This subsection requires bio/
descriptions of all key staff and must be

[[Page 38577]]

provided. If the applicant proposes to use affiliated entities, 
contractors, or subcontractors to provide services funded under the 
grant, the applicant must describe the identities, relationship, 
qualifications, and experience of these affiliated entities. The 
experience and capabilities of these entities will be reviewed by the 
rating panel.
    f. Regulatory and other approvals (2 pages). The applicant must 
identify any other regulatory or other approvals required by other 
Federal, State, local, or Tribal agencies, or by private entities as a 
condition of financing that are necessary to carry out the proposed 
grant project and its estimated schedule for obtaining the necessary 
approvals. Prior to the obligation of any funds for the selected 
proposals, applicants will be required to gather specific information 
in order for RUS to comply with the National Environmental Policy Act 
of 1969 (NEPA) and National Historic Preservation Act (NHPA), for which 
the provision of funding is considered an undertaking subject to 
review. The environmental information that must be supplied by the 
applicant can be found in the environmental report in the application 
materials.
    g. Rural development initiatives (1 page). The narrative should 
describe whether and how the proposed project will support any State 
rural development initiatives. If the project is in support of a rural 
development initiative, the application should include confirming 
documentation from the appropriate rural development agency. The 
application must identify the extent to which the project is dependent 
upon or tied to other rural development initiatives, funding and 
approvals. The applicant should also clarify if they are located in a 
rural community of less than 20,000 people. Projects that do not 
support a State rural development initiative, but are located in 
communities of less than 20,000, will still receive the full 5 points.
    h. Proposed Project Budget (4 pages). 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.
    i. Supplementary Material (5 pages). Only letters of Support will 
be accepted as Supplementary materials. No other additional information 
will be accepted or reviewed. Letters from congress will not be counted 
against the page limitation.
    v. Part D. 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:
     SF 424B, ``Assurances--Non-Construction Programs'' or SF 
424D, ``Assurances--Construction Programs'' (as applicable). All 
applicants applying through Grants.gov must use form SF 424B.
     SF LLL, ``Disclosure of Lobbying Activities.''
     ``Certification Regarding Debarment, Suspension and Other 
Responsibility Matter--Primary Covered Transactions'' as required under 
7 CFR part 3017, Appendix A. Certifications for individuals, 
corporations, nonprofit entities, Indian Tribes, partnerships.
     Environmental Report. The RUS environmental report 
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 
information will be used by RUS's environmental staff to determine 
what, if any, additional environmental impact analyses may be necessary 
before a final grant award may be approved. A copy of the environmental 
report and instructions for completion are included in the Application 
Guide and may be downloaded from RUS's Web site or Grants.gov.

3. Additional Information Requests

    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 before the grant agreement is signed and funds are 
obligated but after the award is subject to 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.

4. Submitting the Application

    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.
    A completed paper application package must contain all required 
parts in the order indicated in the above section on ``Content and Form 
of Application Submission.'' The application package should be 
paginated either sequentially or by section. Applicants are requested 
to provide the application package in single-sided format for ease of 
copying.
    Applicants that are submitting application packages electronically 
through the Federal grants portal Grants.gov (http://www.Grants.gov) 
must follow the application requirements and procedures and submit all 
the forms in the application package provided there. The Grants.gov Web 
site contains full instructions on all required registration, 
passwords, credentialing and software required to submit applications 
electronically. Grants.gov has streamlined the registration and 
credentialing process and now requires separate application processes 
for individuals and organizations. Individual applicants, including 
individuals applying on behalf of an organization, should follow the 
special directions for individuals on the Grants.gov Web site. 
Organizational applicants and sole proprietorships should follow the 
instructions for organizations.
    Organizational applicants are advised that completion of the 
requirements for registration with Grants.gov, with the Central 
Contractor Registry, and e-Authentication required under Grants.gov may 
take a week or more and may be delayed. Accordingly, RUS strongly 
recommends that you complete your organization's registration with 
Grants.gov well in advance of the deadline for submitting applications.
    USDA encourages both individual and organizational applicants who 
wish to apply through Grants.gov to submit their applications well in 
advance of the deadlines. Early submittal will give you

[[Page 38578]]

time to resolve any system problems or technical difficulties with an 
electronic application through the customer support resources available 
at the Grants.gov Web site while preserving the option of submitting a 
timely paper application if any difficulties cannot be resolved.

5. Disclosure of Information

    All material submitted by the applicant may be made available to 
the public in accordance with the Freedom of Information Act (5 U.S.C. 
552) and USDA's implementing regulations at 7 CFR part 1.

6. Submission Dates and Times

    Applications must be postmarked or hand delivered to the RUS or 
posted to Grants.gov by July 30, 2012. RUS will begin accepting 
applications on the date of publication of this NOFA. RUS will accept 
for review all applications postmarked or delivered to us by this 
deadline. Late or incomplete applications will not be considered and 
discarded.
    For the purposes of determining the timeliness of an application 
the RUS will accept the following as 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.

7. Intergovernmental Review

    This program is not subject to the requirements of Executive Order 
12372, ``Intergovernmental Review of Federal Programs,'' as implemented 
under USDA's regulations at 7 CFR part 3015.

8. Other Submission Requirements

    A completed application must contain all required parts in the 
order indicated in the above section on ``Content and Form of 
Application Submission.'' The application package should be paginated 
either sequentially or by section.
    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 an 
RUS 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 an RUS 
representative for additional information.
    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. RUS will not 
accept applications directly over the Internet, by email, or fax.
    Applicants should be aware that Grants.gov requires that applicants 
complete several preliminary registrations and e-authentication 
requirements before being allowed to submit applications 
electronically. Applicants should consult the Grants.gov Web site and 
allow ample time to complete the steps required for registration before 
submitting their applications. Applicants may download application 
materials and complete forms online through Grants.gov without 
completing the registration requirements. Application materials 
prepared online may be printed and submitted in paper to RUS as 
detailed above.

9. Multiple Applications

    Eligible applicants must include only one project per application, 
but the project can include many locations. No more than $3 million in 
grant funds will be awarded per project application. Unlike prior HECG 
NOFAs, an applicant will only be awarded funding for one project under 
this NOFA. An applicant will not receive funding for numerous projects 
under this NOFA.

V. Application Review Information

    After the application closing date, RUS 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 
feasibility of the grant proposal after the application closing date.
    If the RUS determines that an application package was not delivered 
to RUS or postmarked on or before the deadline of July 30, 2012, the 
application will be rejected as untimely.
    After review, the RUS will reject any application package that in 
its sole discretion determines is not complete or that does not 
demonstrate that the applicant, community or project is eligible under 
the requirements of this NOFA and program regulations. Applicants will 
be notified in writing of RUS's decision. 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 RUS 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.
    The RUS may establish one or more rating panels to review and rate 
the eligible grant applications. These panels may include persons not 
currently employed by USDA.
    The panel will evaluate and rate all complete applications that 
meet the eligibility requirements using the selection criteria and 
weights described in this NOFA. As part of the proposal review and 
ranking process, panel members may make comments and recommendations 
for appropriate conditions on grant awards to promote successful 
performance of the grant or to assure compliance with other Federal 
requirements. The decision to include panel recommendations on grant 
conditions in any grant award will be at the sole discretion of the RUS 
Administrator.

[[Page 38579]]

    All applications will be scored and ranked according to the 
evaluation and scoring criteria described in this Notice. The 
evaluation and scoring criteria differ from those used in prior NOFAs. 
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.
    The 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, skip over that project to the next ranking project that can 
be fully funded with available funding.

1. Scoring Criteria

    The RUS will use the selection criteria described in this NOFA to 
evaluate and rate applications. Applications will be reviewed in two 
rounds, the first round determines eligibility and the second round 
scores the application.
A. Determining Eligibility
    To determine if the project is eligible, a review panel will look 
only at the three page document, Part B: Grant Eligibility, which is 
described in this NOFA and includes narrative on the Project, 
Applicant, and Community eligibility. No points will be awarded in this 
round of review. The application is only determined to be eligible or 
not eligible. Applicants that are determined to be ineligible will be 
notified and have 10 days to appeal the decision.
B. Scoring Eligible Applicants
    The total possible score is 100, and the applicant will be scored 
only on Part C: Grant Proposal as described in this NOFA. The following 
are the scored sections and their associated point totals:

------------------------------------------------------------------------
                                                                  Points
------------------------------------------------------------------------
Executive Summary..............................................        0
Project Needs..................................................       15
Project Description (Design)...................................       30
Project Goals and objectives and Project Performance Measures..       10
Project Management.............................................       30
    Management Plan and Schedule, (a subset of Project                10
     Management)...............................................
    Project Reporting Plan (a subset of Project Management)....        5
    Relevant Organizational Experience (a subset of Project            5
     Management)...............................................
    Key Staff Experience (a subset of Project Management)......       10
Regulatory and other approvals.................................        0
Rural development initiatives..................................        5
Proposed Project Budget........................................       10
Supplementary Material.........................................        0
    Total......................................................      100
                                                                  points
------------------------------------------------------------------------

2. Review and Selection Process

    A. Applications will be scored and ranked according to the 
evaluation criteria and weights referenced above by a panel. The scored 
and ranked applications and the raters' comments will then be forwarded 
to the Administrator for review and selection of grant awards.
B. Selection of Grant Awards and Notification of Applicants
    The RUS Administrator will review the rankings and recommendations 
of the applications provided by the rating panel for consistency with 
the requirements of this NOFA. The Administrator may return any 
application to the rating panel with written instruction for 
reconsideration if, in his sole discretion, he finds that the scoring 
of an application is inconsistent with this NOFA and the directions 
provided to the rating panel.
    Following any adjustments to the project rankings as a result of 
reconsideration, the Administrator will select projects for funding in 
rank order. If two projects from the same applicant score high enough 
to potentially receive funding, the Administrator will skip the lower 
scoring project; not fund the project.
    The Administrator may decide based on the recommendations of the 
rating panel or in his sole discretion that a grant award may be made 
contingent upon the applicant satisfying certain conditions. For 
example, RUS will not obligate funding for a selected project--such as 
projects requiring 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 conditions within 
the time set by RUS, the award will be terminated.
    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 RUS's acceptance of a project for an award, 
subject to compliance with all post-award requirements including but 
not limited to completion of any environmental reviews and execution of 
a grant agreement satisfactory to the RUS. This acceptance does not 
bind the Government to making a final grant award. Only an 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.

VI. Award Administration Information

1. Award Notices

    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. Successful applicants will be required to 
execute an RUS grant agreement and complete additional grant forms and 
certifications required by USDA as part of the 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 RUS' Environmental 
Policies and Procedures at 7 CFR part 1794. Following completion of the 
environmental review process, selected applicants will receive a letter 
articulating the grant agreement and asked to execute a letter of 
intent to meet the grant conditions. Grant funds will not be advanced 
unless and until the applicant has executed a grant agreement and funds 
will not be advanced until all conditions have been satisfied in a 
manner satisfactory to RUS.

2. Administrative and National Policy Requirements

A. Environmental Review and Restriction on Certain Activities
    Grant awardees will be required to submit the appropriate 
environmental review documentation, as outlined in the environmental 
report and any other following environmental impact analyses required 
by RUS Environmental Policies and Procedures (7 CFR Part 1794) Grantees 
must also agree to comply with any other Federal or State environmental 
laws and regulations applicable to the grant project.

[[Page 38580]]

    In accordance with Sec.  1794.15, applicants are restricted from 
taking actions that may have an adverse environmental impact or limit 
the choice of alternatives being considered until the environmental 
review process is concluded. If an applicant takes such actions, RUS 
will not advance grant funds. If the proposed grant project involves 
physical development activities or property acquisition, the applicant 
is generally prohibited from acquiring, rehabilitating, converting, 
leasing, repairing or constructing property or facilities, or 
committing or expending RUS or non-RUS 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 requirements apply to their proposals.
B. Other Federal Requirements
    Other Federal statutes and regulations apply to grant applications 
and to grant awards. These include, but are not limited to, 
requirements under 7 CFR part 15, subpart A--Nondiscrimination in 
Federally Assisted Programs of the Department of Agriculture--
Effectuation of Title VI of the Civil Rights Act of 1964.
    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:
     OMB Circular No. A-87 (Cost Principles Applicable to 
Grants, Contracts and Other Agreements with State and Local 
Governments);
     OMB Circular A-21 (Cost Principles for Education 
Institutions);
     OMB Circular No. A-122 (Cost Principles for Nonprofit 
Organizations);
     OMB Circular A-133 (Audits of States, Local Governments, 
and Non-Profit Organizations);
     7 CFR part 3015 (Uniform Federal Assistance Regulations);
     7 CFR part 3016 (Uniform Administrative Requirements for 
Grants and Cooperative Agreements to State, Local, and Federally 
recognized Indian Tribal governments);
     7 CFR part 3017 (Government-wide debarment and suspension 
(non-procurement) and Government-wide requirements for drug-free 
workplace (grants));
     7 CFR part 3018 (New restrictions on Lobbying);
     7 CFR part 3019 (Uniform administrative requirements for 
grants and Agreements with Institutions of Higher Education, Hospitals, 
and other Non-Profit Organizations); and
     7 CFR part 3052 (Audits of States, local governments, and 
non-profit organizations).

Compliance with additional OMB Circulars or government-wide regulations 
may be specified in the grant agreement.

3. Reporting

    The grantee will be required to provide periodic financial and 
performance reports under USDA grant regulations and program rules and 
to submit a final project performance report. The nature and frequency 
of required reports are established in USDA grant regulations and the 
project-specific grant agreements.
    The applicant must have the necessary processes and systems in 
place to comply with the reporting requirements for first-tier sub-
awards and executive compensation under the Federal Funding 
Accountability and Transparency Act of 2006 in the event the applicant 
receives funding unless such applicant is exempt from such reporting 
requirements pursuant to 2 CFR part 170, Sec.  170.110(b). The 
reporting requirements under the Transparency Act pursuant to 2 CFR 
part 170 are as follows:
    A. First Tier Sub-Awards of $25,000 or more in non-Recovery Act 
funds (unless they are exempt under 2 CFR Part 170) must be reported by 
the Recipient to http://www.fsrs.gov no later than the end of the month 
following the month the obligation was made.
    B. The Total Compensation of the Recipient's Executives (5 most 
highly compensated executives) must be reported by the Recipient (if 
the Recipient meets the criteria under 2 CFR Part 170) to http://www.ccr.gov by the end of the month following the month in which the 
award was made.
    C. The Total Compensation of the Subrecipient's Executives (5 most 
highly compensated executives) must be reported by the Subrecipient (if 
the Subrecipient meets the criteria under 2 CFR Part 170) to the 
Recipient by the end of the month following the month in which the 
subaward was made.

VII. RUS Contact

    The RUS Contact for this grant announcement is Kristi Kubista-
Hovis, Senior Policy Advisor, 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, email Kristi.Kubista-
[email protected].

    Dated: May 30, 2012.
Jonathan Adelstein,
Administrator, Rural Utilities Service.
[FR Doc. 2012-15906 Filed 6-27-12; 8:45 am]
BILLING CODE P