[Federal Register: December 9, 2002 (Volume 67, Number 236)]
[Notices]
[Page 72904-72914]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr09de02-26]
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DEPARTMENT OF AGRICULTURE
Rural Utilities Service
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) of the United States
Department of Agriculture (USDA) announces the availability of $14.9
million in a new program of 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 (7 U.S.C.
1918a). 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
[[Page 72905]]
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.
DATES: All applications must be postmarked or delivered to RUS no later
than February 7, 2003.
Applications will be accepted on publication of this notice.
ADDRESSES: Applications are to be submitted to the Rural Utilities
Service, U.S. Department of Agriculture, 1400 Independence Avenue, SW,
STOP 1522, Room 4034 South Building, Washington, DC 20250-1522.
Applications should be marked ``Attention: High Energy Cost Community
Grant Program.''
FOR FURTHER INFORMATION CONTACT: Karen Larsen, Management Analyst, U.S.
Department of Agriculture, Rural Utilities Service, Electric Program,
1400 Independence Avenue, SW, STOP 1560, Room 4037 South Building,
Washington, DC 20250-1560. Telephone 202-720-9545, Fax 202-690-0717,
email HEnergy02@rus.usda.gov.
SUPPLEMENTARY INFORMATION:
Programs Affected
This program is listed in the Catalog of Federal Domestic
Assistance Programs (CFDA) as ``Assistance to High Energy Cost Rural
Communities.'' The CFDA number assigned to this program is 10.859.
Executive Order 12372
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.
Information Collection and Recordkeeping Requirements
Under the Paperwork Reduction Act (44 U.S.C. 3501 et seq.) (the
``Act''), OMB must approve all ``collections of information'' by RUS.
The Act defines ``collection of information'' as a requirement for
``answer to * * * identical reporting or recordkeeping requirements
imposed on ten or more persons * * *.'' (44 U.S.C. 3502(3)(A).) RUS has
determined that it is likely that fewer than ten applications will be
received because of stringent eligibility requirements. Therefore, this
NOFA does not involve the imposition of identical reporting and
recordkeeping requirements on ten or more persons and does not require
approval under the Act. If RUS receives ten or more applications in
response to this NOFA, the Agency will submit a request for approval
under the Paperwork Reduction Act.
Background
RUS is making available $14.9 million in competitive grants through
a new financial assistance program under the Rural Electrification Act
of 1936 (7 U.S.C. 901 et seq.) (the ``RE Act''). Under section 19 of
the RE Act (7 U.S.C. 918a), RUS is authorized to make grants to
``acquire, construct, extend, upgrade, and otherwise improve energy
generation, transmission, or distribution facilities'' serving
communities in which the average residential expenditure for home
energy is at least 275 percent of the national average residential
expenditure for home energy.''
The purpose of this new program is to provide financial assistance
for a broad range of energy facilities, equipment and related
activities to offset the impacts of extremely high residential energy
costs on eligible communities. Grants funds may be used to ``acquire,
construct, extend, upgrade and otherwise improve energy generation,
transmission, or distribution facilities' serving extremely high energy
cost communities. Eligible facilities include on-grid and off-grid
renewable energy systems and implementation of cost-effective demand
side management and energy conservation programs that benefit eligible
communities.
Eligible applicants include ``persons, States, political
subdivisions of States, and other entities organized under the laws of
States.'' Under section 13 of the RE Act (7 U.S.C. 913) ``the term
person shall be deemed to mean any natural person, firm, corporation,
or association.'' Indian tribes and tribal entities are eligible
applicants and beneficiaries under this program.
No cost sharing or matching funds are required as a condition of
eligibility under this grant program. However, RUS will consider other
financial resources available to the grantee and any voluntary
commitment of matching funds or other contributions in assessing the
grantee's capacity to carry out the grant program successfully and will
award additional evaluation points to proposals that include such
contributions.
As a further condition of each grant, section 19(b)(2) of the RE
Act requires that planning and administrative expenses may not exceed 4
percent of the grant funds.
This NOFA provides an overview of the grant program, eligibility
and application requirements, and selection criteria. Applicants should
consult the detailed grant Application Guide for additional 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.usda.gov/rus/electric/hecgp/index.htm. The
application guide may also be requested from
the Agency contact listed above.
Definitions
As used in this NOFA:
Administrator means the Administrator of the RUS.
Agency means the Rural Utilities Service.
Application Guide means the Application Guide prepared by RUS for
the High Energy Cost Grant program containing detailed instructions for
determining eligibility and preparing grant applications, and copies of
required forms, questionnaires, and model certifications.
Census block means the smallest geographic entity for which the
Census Bureau collects and tabulates decennial census information and
which are defined by boundaries shown on census maps.
Census designated place (CDP) means a statistical entity recognized
by the U.S. Census comprising a dense concentration of population that
is not within an incorporated place but is locally identified by a name
and with boundaries defined on census maps.
Extremely high energy costs means local community average
residential energy costs that are at least 275 percent of one or more
home energy cost benchmarks identified by RUS based on the national
average residential energy expenditures as reported by the Energy
Information Administration (EIA).
Home energy means any energy source or fuel used by a household
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. Other
transportation fuel uses are not included, however.
Home energy cost benchmarks means the criteria established by RUS
for eligibility as an extremely high energy cost community. Home energy
cost benchmarks are calculated for total annual household energy
expenditures;
[[Page 72906]]
total annual expenditures for individual fuels; annual average per unit
energy costs for primary home energy sources at 275 percent of EIA
estimates of national average residential energy expenditure.
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 (85 Stat. 688) [43
U.S.C. 1601 et seq.], which 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, or association
and for purposes of this notice, 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.
Target area means the geographic area to be served by the grant.
Target community means the unit or units of local government in
which the target area is located.
Tribal entity means a legal entity that is owned, controlled,
sanctioned, or chartered by the recognized governing body of an Indian
tribe as defined in this NOFA.
Award Information
The total amount of funds available for grants under this notice is
$14.9 million. The number of grants awarded under this NOFA will depend
on the number of applications submitted, the amount of grant funds
requested, and the quality and competitiveness of applications
submitted.
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 and are subject to USDA financial assistance
regulations at 7 CFR parts 3015, 3016, 3017, 3018, 3019, and 3052, as
applicable. 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 award period will generally be for
36 months, however, longer periods may be approved depending on the
project involved.
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 panels. The RUS Administrator will then fund grant applications
in rank order.
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.
RUS also reserves the right to partially fund grants if grant
applications exceed the available funds. RUS will advise applicants if
it cannot fully fund a grant request.
Eligible Projects
Grantees must use grant funds to acquire, construct, extend,
upgrade, or otherwise improve energy generation, transmission, or
distribution facilities serving eligible communities. All energy
generation, transmission, and distribution facilities, equipment, and
associated services used to provide electricity, natural gas, home
heating fuels, and other residential energy service are eligible. On-
grid and off-grid renewable energy projects, and energy efficiency, and
energy conservation projects that serve eligible communities are
included.
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 project must serve communities that meet the extremely high
energy cost eligibility requirements described in this NOFA. The
grantee must demonstrate that the proposed project will benefit
eligible communities. Additional information on eligible activities is
contained in the Application Guide.
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 target communities. However, grant
funds may be used to finance an eligible target community's
proportionate share of a larger energy project.
Consistent with USDA policy, grant funds awarded under this program
generally cannot be used to replace other USDA assistance or to
refinance or repay outstanding RUS loans. Grant funds may, however, be
used in combination with other USDA assistance programs including RUS
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 and as a cost
contribution as part of the utility's expansion of its distribution
system financed in whole or part by an RUS electric loan. 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 or grant from
RUS or other sources.
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.
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 applicants include:
for-profit and nonprofit organizations, including corporations,
associations, partnerships (including limited liability partnerships),
cooperatives, trusts, and sole proprietorships; State and local
[[Page 72907]]
governments, counties, cities, towns, boroughs, or other agencies or
units of State or local governments; Indian tribes, other tribal
entities, Alaska Native Corporations; and individuals.
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.
All applicants must demonstrate the legal capacity to enter into 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.
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'' as determined by the Energy Information
Administration (EIA) using the most recent data available. 7 U.S.C.
918a.
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 EIA national average
home energy expenditure data. Communities must meet one or more high
energy cost benchmarks to qualify as an eligible beneficiary of a grant
under this program. 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 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 by RUS 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. The
latest available RECS home energy expenditure estimates are based on
1997 survey data and are shown in Table 1.
Table 1.--EIA Average Annual Household Energy Expenditures and RUS Extremely High Energy Cost Eligibility
Criteria Benchmarks
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Average total Extremely high energy
Fuel consumption National average cost benchmark
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Average annual household expenditure:
Electricity...................... 10,219 kilowatt hours $871 per year.......... $2,341 per year
(kWh).
Natural Gas...................... 83 thousand cubic feet. 579 per year........... 1,547 per year
Fuel Oil......................... 730 gallons............ 714 per year........... 1,870 per year
LPG/Propane...................... 488 gallons............ 500 per year........... 1,266 per year
Total Household Energy Use... 101 million Btus....... 1,338 per year......... 3,613 per year
Annual average per unit residential
energy costs:
Electricity...................... ....................... 0.085 per kWh.......... 0.229 per kWh
Natural Gas...................... ....................... 6.96 per thousand cubic 18.78 per thousand
feet. cubic feet
Fuel Oil......................... ....................... 0.96 per gallon........ 2.62 per gallon
LPG/Propane...................... ....................... 1.03 per gallon........ 2.72 per gallon
Total Household Energy cost ....................... 13.25 per million Btus. 36.10 per million Btus
per Btus.
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Sources: U.S. Department of Energy, Energy Information Administration, Residential Energy Consumption and
Expenditure Surveys 1997. 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. The most prevalent
include high energy consumption, high per unit energy costs in local
markets, 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.
RUS has established community eligibility criteria based on EIA's
estimates of national average residential energy expenditures. Table 1
shows the national averages and RUS benchmark criteria for extremely
high energy costs. The applicant must demonstrate that each community
in the grant's proposed target area exceeds one or more of these high
energy cost benchmarks to be eligible for assistance under this
program.
RUS 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.
RUS is adopting the following high energy cost benchmarks as
eligibility criteria for competitive grant applications submitted in
response to this NOFA. A target community or target area will qualify
as an extremely high cost energy community if it meets
[[Page 72908]]
one or more of the energy cost benchmarks described below.
1. Extremely High Average Annual Household Expenditure For Home
Energy. The target area or community exceeds one or more of the
following:
[sbull] Average annual residential electricity expenditure of
$2,341 per household;
[sbull] Average annual residential natural gas expenditure of
$1,547 per household;
[sbull] Average annual residential expenditure on fuel oil of
$1,870 per household;
[sbull] Average annual residential expenditure on propane or
liquefied petroleum gas (LPG) as a primary home energy source of $1,266
per household; or
[sbull] Average annual residential energy expenditure (for all non-
transportation uses) of $3,613 per household.
2. 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:
[sbull] Annual average revenues per kilowatt hour for residential
electricity customers of $0.229 per kilowatt hour (kWh);
[sbull] Annual average residential natural gas price of $18.78 per
thousand cubic feet;
[sbull] Annual average residential fuel oil price of $2.62 per
gallon;
[sbull] Annual average residential price of propane or LPG as a
primary home energy source of $2.72 per gallon; or
[sbull] Total annual average residential energy cost on a Btu basis
of $36.13 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. In estimating average household per
unit energy cost on a Btu basis, the costs of different home energy
sources are converted to a standard Btu basis. The Application Guide
contains additional information on calculating per unit costs on a
Btu basis for major home energy sources.
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Supporting Energy Cost Data
The applicant must include information that demonstrates its
eligibility under the RUS high energy cost benchmarks for the target
communities and the target 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 target community or target 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 target area. To determine eligibility, the applicant
must identify each community included in whole or in part within the
target areas and provide supporting actual or estimated energy
expenditure data for each community. The smallest area that may be
designated as a target area is a 2000 Census block. This minimum size
is necessary to enable a determination of population size.
Potential applicants can compare the RUS 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 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.
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 target 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 target 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 target 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 of 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 applicants in determining eligibility, technical
feasibility, and adequacy of proposed budget estimates.
Coordination With State Rural Development Initiatives
USDA encourages the coordination of grant projects under this
program with State rural 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.
RUS will, however, award additional priority 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 concurrence or endorsement by State rural development
officials.
If an Applicant is an entity directly involved in rural development
efforts, such as a State, local, or tribal rural development agency or
a participant in an existing USDA Rural Development program, the
Applicant may qualify for
[[Page 72909]]
additional points by describing how its proposed project supports its
efforts.
How To Apply
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 and sources of information
for use in preparing applications and copies of the required
application forms. The Guide may be downloaded from RUS Web site
http://www.usda.gov/rus/electric/hecgp/index.htm or
requested from RUS.
How To Request An Application Package
Application packages, including required forms, may be requested
from: Karen Larsen, Management Analyst, U.S. Department of Agriculture,
Rural Utilities Service, Electric Program, 1400 Independence Avenue,
SW, STOP 1560, Room 4037 South Building, Washington, DC 20250-1560.
Telephone 202-720-9545, Fax 202-690-0717, email HEnergy02@rus.usda.gov.
What To Include In The Application
Applicants should follow the directions in this notice and the
Application Guide in preparing their applications. The completed
application should be assembled in the order specified with all pages
numbered sequentially or by section. The applicant must submit the
following information for the application to be complete and considered
for funding:
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.
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.
1. Executive Summary. The Executive Summary is a one to two 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; (c) provides a brief description of the proposed program
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 target community's extremely high energy
costs; and (d) identifies the associated rural development initiative
that the project supports. The Executive Summary should also indicate
whether the applicant is claiming additional points under any of the
criteria designated as USDA priorities under this NOFA.
2. Table of Contents: The application package must include a table
of contents immediately after the Executive Summary with page numbers
for all required sections, forms, and appendices.
3. 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
enter into a financial assistance relationship with the Federal
Government. Examples of supporting evidence of applicant's legal
existence and eligibility include: a reference to or copy of the
relevant statute, regulation, executive order, or legal opinion
authorizing a State, local, or tribal government program, articles of
incorporation or certificates of incorporation for corporate
applicants, partnership or trust agreements, board resolutions.
Applicants must also be free of any debarment or other restriction on
their ability to contract with the Federal Government.
4. Community Eligibility: This section provides a narrative
description of the community or communities to be served by the grant
and supporting information to establish eligibility. The narrative must
show that the proposed grant project's target 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 2000
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.
5. Coordination With State Rural Development Initiatives: In this
section the applicant must describe how the proposed grant will be
coordinated with rural development efforts. The Applicant should
provide supporting references or documentation.
6. Project Overview: This section includes the applicant's
narrative overview of its proposed project. The narrative must address
the following:
a. Project Design: 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 RUS
loans and loan guarantees as set forth in RUS Electric Program
Regulations and Bulletins and may reference these requirements.
b. Project Management: This section must provide a narrative
describing the applicant's capabilities and project management plans.
The description should address the applicant's organizational
structure, method of funding, legal authority, key personnel, project
management experience, staff resources, the goals and objectives of the
program or business, and any related services provided to the project
beneficiaries. A current financial statement and other supporting
documentation may be referenced here and included under the
Supplementary Material section. 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. If the applicant proposes to
[[Page 72910]]
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, resources and project
structure will enable successful completion of the project.
c. Regulatory and other approvals: 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.
d. Benefits of the proposed project: The applicant should describe
how the proposed project would benefit the target area and eligible
communities. The description must specifically address how the project
will improve energy generation, transmission, or distribution
facilities serving the target area. 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 target
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.
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. The budget must
document that planned administrative and other expenses of the project
sponsor will not total more than 4 percent of grant funds. The
applicant must also identify the source and amount of any other
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 RUS will award additional
rating points for programs that include a match of other funds or like-
kind contributions to support the project.
8. Supplementary Material: The applicant may append any additional
information relevant to the proposal or which may qualify the
application for extra points under the evaluation criteria described in
this NOFA.
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:
[sbull] SF 424B, ``Assurances--Non-Construction Programs'' or SF
424D, ``Assurances--Construction Programs'' (as applicable).
[sbull] SF LLL, ``Disclosure of Lobbying Activities.''
[sbull] Drug-free Workplace Certification: Form AD-1049,
``Certification Regarding Drug-free Workplace Requirements for Grantees
other than Individuals;'' Form AD-1050, ``Certification Regarding Drug-
free Workplace Requirements for Individuals;'' or Form AD-1052,
``Certification Regarding Drug-free Workplace Requirements, States and
State Agencies.'' (State applicants that have already submitted this
certification to USDA may reference their prior filing and need not
submit a new certification.)
[sbull] ``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.
[sbull] Environmental Profile. The environmental profile 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 RUS 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.
Submitting the Application
Applicants must submit one original application 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.
A completed application must contain all required parts in the
order indicated in the above section on ``What to Include in the
Application.'' The application package should be paginated either
sequentially or by section.
The completed application package and two copies must be delivered
to RUS headquarters in Washington, DC at the address listed at the
beginning of this notice using United States Mail, overnight delivery
service, or by hand. At this time, RUS is not able to accept
applications online, by email or fax. Applicants should be advised that
regular mail deliveries to Federal Agencies, especially of oversized
packages and envelopes, continues 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. 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.
Deadline for Submission and Late Applications
Applications must be postmarked or delivered to RUS by February 7,
2003. RUS will begin accepting applications on the date of publication
of this NOFA. RUS will accept for review all applications postmarked or
delivered to RUS by this deadline. Late applications will not be
considered and will be returned to the Applicant.
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.
Review of Applications
All applications for grants must be delivered to RUS at the address
listed above or postmarked no later than February 7, 2003 to be
eligible for grant funding. After the deadline has passed, RUS will
review each application to determine whether it is complete and meets
all of the eligibility requirements described in this NOFA.
[[Page 72911]]
After the application closing date, RUS will not consider any
unsolicited information from the applicant. 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. 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.
RUS may establish one or more rating panels to review and rate the
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
Administrator.
RUS will use the ratings and recommendations of the panel(s) to
rank applicants against other applicants. 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
Selection Criteria and Weights
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. 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.
Project Design and Technical Merit Criteria
Reviewers will consider the soundness of 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.
A. 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. Reviewers will also evaluate how the applicant
proposes to manage available resources such as grant funds, income
generated from the facilities, and any other financing sources to
maintain and operate a financially viable project once the grant period
has ended.
B. 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. 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, RUS will consider the experience of the
project team and the effectiveness of the program design in
compensating for lack of extensive experience.
C. Community Needs. (Up to 15 points) Reviewers will consider the
applicant's identification and documentation of eligible communities,
their populations, and the applicant's 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:
(a) the burden placed on the community and individual households by
extremely high energy costs as evidenced by such quantitative measures
as, for example, total energy expenditures, per unit energy costs,
energy cost intensity for occupied space, or energy costs as a share of
average household income, and persistence of extremely high energy
costs compared to national or statewide averages.
(b) the hardships created by limited access to reliable and
affordable energy services; and
(c) the availability of other resources to support or supplement
the proposed grant funding.
D. 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.
E. Coordination with Rural Development Initiatives. (Up to 5
points) Raters will assess how effectively the proposed project is
coordinated with State rural development initiatives and is consistent
with and supports these efforts. RUS will consider the documentation
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.
Priority Criteria
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 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, RUS will award additional points to smaller communities and
areas experiencing economic hardship, persistent poverty, or where
community energy services are inadequate or the facilities present an
imminent hazard to public health or safety. Priority points will also
be awarded for proposals that include cost sharing, or that serve a
Federally designated Empowerment
[[Page 72912]]
Zone or Enterprise Community (EZ/EC) or a USDA Champion Community. A
maximum of 35 total points may be awarded under priority criteria.
1. Economic Hardship. (Up to 10 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 A below or subjectively under B based on the Applicant's
description of the community's economic hardships and supporting
materials. Applicants may elect either measure, but not both.
A. Economically Distressed Communities (up to 10 points). The
target community is an economically distressed county 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 according to the following:
(1) Less than 70 percent of the State median household income--10
points;
(2) 70 to 80 percent of the State median household income--8
points; or
(3) 80 to 90 percent of the State median household income--5
points;
(4) 90 to 95 percent of the State median household income--2 points
(5) over 95 percent of the State median household income--0 points
Information on State and county median income is available online
from the USDA Economic Research Service at http://www.ers.usda.gov/data/unemployment/
.
B. Other Economic Hardship (up to 10 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, loss of major local employer, outmigration, or other
condition adversely affecting the local economy, or contributing to
unserved or underserved energy infrastructure needs that affect the
economic health of the community.
2. Persistent poverty community. (3 points) Persistent poverty
counties are those where poverty continues to be a long-term problem.
The Economic Research Service (ERS) of USDA has defined a persistent
poverty county as a nonmetropolitan county in which more than 20
percent of the population were below the poverty level in each of the
last 4 census years. ERS has made a preliminary identification of over
300 nonmetropolitan counties in which more than 20 percent of the
population was below the poverty level in 1970, 1980, 1990, and 2000. A
list of the ERS persistent poverty counties can be found in the online
Application Guide http://www.usda.gov/rus/electric/hecgp/counties.htm
or requested from the agency contact. In support of USDA policy, raters
will award 3 points to any proposal in which the target area or project
is located in a persistent poverty county.
3. Rurality. ( Up to 12 points) Consistent with the USDA Rural
Development policy to target resources to rural communities with
significant needs and recognizing that smaller communities are often
comparatively disadvantaged in seeking assistance, RUS reviewers will
award additional points based on the rurality (as measured by
population) of the target communities to be served with grant funds.
Applications 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.
If the largest target community within the proposed target area has
a population of:
(A) 2,500 or less--12 points;
(B) Between 2,501 and 5,000, inclusive 10 points;
(C) Between 5,001 and 10,000, inclusive 8 points;
(D) Between 10,001 and 15,000, inclusive 5 points;
(E) Between 15, 001 and 20,000, inclusive 2 points;
(F) Above 20,000, 0 points.
Applicants must use the latest available population figures from
Census 2000 available at http://www.census.gov/main/www/cen2000.html
for every incorporated city, town, or village, or Census designated
place included in the target area.
4. 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.
5. 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 failure would
create a substantial threat to public health or safety, or to the
environment.
6. 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 that
supplemental contributions of funds, property, equipment, services, or
other in kind contributions that support the project and demonstrate
the applicant's and/or community's commitment to the project exceed 10
percent of project costs.
7. Empowerment Zone and Enterprise Community (EC/EZ) or Champion
Community (up to 4 points) If the proposed project serves at least one
community that is a Federally-identified Empowerment Zone and
Enterprise Community (EC/EZ Community), 4 points will be awarded. The
list of currently approved EC/EZ communities may be found at the EZ/EC
Web site at: http://www.ezec.gov or may be requested from the agency
contact.
If the proposed project serves at least one community that is a
USDA identified ``Champion Community,'' 2 points will be awarded. The
list of currently approved USDA champion communities may be found at
the EZ/EC Web site at: http://www.ezec.gov or may be requested from the
agency contact.
Scoring and Ranking of Applications
Following the evaluation and rating of individual applications
under the above criteria, the rating panels will rank the applications
in order according to their total scores. The scored and ranked
applications and the raters' comments will then be forwarded to the
Administrator for review and selection of grant awards.
Selection of Grant Awards and Notification of Applicants
The RUS Administrator will review the rankings and recommendations
of the applications provided by the rating panels 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 her sole discretion, she finds that the scoring
of an application is
[[Page 72913]]
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 funds remain after funding the highest ranking
application, RUS may fund all or part of the next highest ranking
application. RUS will advise an applicant if it cannot fully fund a
grant request.
The Administrator may decide based on the recommendations of the
rating panel or in her 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, RUS may defer approving a final award to a selected project--
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 RUS, 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 RUS, or to provide required
information requested by RUS within the time period established in the
notification of selection for grant award, the RUS Administrator may
select for funding the next highest ranking application submitted in
response to this NOFA. If funds remain after all selections have been
made, remaining funds will be carried over and made available in future
awards under the High Energy Cost Grant Programs.
RUS will notify each Applicant in writing whether or not it has
been selected for an award. RUS's written notice to a successful
applicant of the amount of the grant award based on the approved
application will constitute RUS's preliminary approval, 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 RUS. Preliminary
approval 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. RUS will advise selected applicants of additional
requirements or conditions.
Adjustments to Funding
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. RUS 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.
Grant assistance cannot exceed the lower of:
(a) The qualifying percentage of eligible project costs requested
by the Applicant; or
(b) The minimum amount sufficient to provide for the economic
feasibility of the project as determined by RUS.
Other Grantee Requirements
RUS will notify successful grantees of their selection. Successful
applicants will be required to execute a grant agreement acceptable to
RUS and complete additional grant forms and certifications required by
USDA. The grantee will provide periodic financial and performance
reports as required by RUS and submit a final project performance
report. 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 policy
regulations and procedures at 7 CFR part 1794.
RUS will require each successful applicant to agree to the specific
terms of each grant agreement, a project budget, and other RUS
requirements. In cases where RUS cannot successfully conclude
negotiations with a selected applicant or a selected applicant fails to
provide RUS with requested information within the time specified, an
award will not be made to that applicant. The selection will be revoked
and RUS may offer an award to the next highest ranking applicant, and
proceed with negotiations with the next highest ranking applicant.
Environmental Review and Restriction on Certain Activities
Grant awards are required to comply with 7 CFR part 1794, which
sets forth RUS regulations implementing the National Environmental
Policy Act (NEPA). Grantees must also agree to comply with any other
Federal or State environmental laws and regulations applicable to the
grant project.
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 committing or expending RUS or
non-RUS funds for proposed grant activities until 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.
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 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 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);
[sbull] OMB Circular A-21 (Cost Principles for Education
Institutions);
[sbull] OMB Circular No. A-122 (Cost Principles for Nonprofit
Organizations);
[sbull] OMB Circular A-133 (Audits of States, Local Governments,
and Non-Profit Organizations);
[sbull] 7 CFR part 3015 (Uniform Federal Assistance Regulations);
[sbull] 7 CFR part 3016 (Uniform Administrative Requirements for
Grants and Cooperative Agreements to State, Local, and Federally
recognized Indian tribal governments);
[sbull] 7 CFR part 3017 (Governmentwide debarment and suspension
(non-procurement) and governmentwide requirements for drug-free
workplace (grants));
[sbull] 7 CFR part 3018 (New restrictions on Lobbying);
[sbull] 7 CFR part 3019 (Uniform administrative requirements for
grants
[[Page 72914]]
and Agreements with Institutions of Higher Education, Hospitals, and
other Non-Profit Organizations); and
[sbull] 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.
Dated: December 4, 2002.
Hilda Gay Legg,
Administrator, Rural Utilities Service.
[FR Doc. 02-31056 Filed 12-6-02; 8:45 am]
BILLING CODE 3410-15-P