[Code of Federal Regulations]
[Title 7 Volume 11]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1709]
[Page 92-109]
TITLE 7--AGRICULTURE
CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
PART 1709_ASSISTANCE TO HIGH ENERGY COST COMMUNITIES--Table of Contents
Subpart A_General Requirements
Sec.
1709.1 Purpose.
1709.2 Policy. [Reserved]
1709.3 Definitions.
1709.4 Allocation of available funds among programs.
1709.5 Determination of energy cost benchmarks.
1709.6 Appeals.
1709.7 Applicant eligibility.
1709.8 Electronic submission.
1709.9 Grant awards and advance of funds.
1709.10 Ineligible grant purposes.
1709.11 Award conditions.
1709.12 Reporting requirements.
1709.13 Grant administration.
1709.14 Inspections.
1709.15 Grant close out.
1709.16 Performance reviews.
1709.17 Environmental review.
1709.18 Civil rights.
1709.19 Other USDA regulations.
1709.20 Member delegate clause.
1709.21 Audit requirements.
1709.22 Project changes.
1709.23-1709.99 [Reserved]
1709.100 OMB control number.
Subpart B_RUS High Cost Energy Grant Program
1709.101 Purpose.
1709.102 Policy.
1709.103-1709.105 [Reserved]
1709.106 Eligible applicants.
1709.107 Eligible communities.
1709.108 Supporting data for determining community eligibility.
1709.109 Eligible projects.
1709.110 Use of grant funds.
1709.111 Limitations on use of grant funds.
1709.112 Ineligible grant purposes.
1709.113 Limitations on grant awards.
1709.114 Application process.
1709.115 Availability of application materials.
1709.116 Application package.
1709.117 Application requirements.
1709.118 Submission of applications.
1709.119 Review of applications.
1709.120 Evaluation of applications.
1709.121 Administrator's review and selection of grant awards.
1709.122 Consideration of eligible grant applications under later grant
announcements.
1709.123 Evaluation criteria and weights.
1709.124 Grant award procedures.
1709.125-1709.200 [Reserved]
Subpart C_Bulk Fuel Revolving Fund Grant Program
1709.201 Purpose.
1709.202 Policy. [Reserved]
1709.203 Definitions.
1709.204-1709.206 [Reserved]
1709.207 Eligible applicants.
1709.208 Use of grant funds.
1709.209 Limitations on use of grant funds.
1709.210 Application process.
1709.211 Submission of applications.
1709.212 Application review.
1709.213 Evaluation of applications.
1709.214 Administrator's review and selection of grant awards.
1709.215 Consideration of unfunded applications under later grant
announcements.
1709.216 Evaluation criteria and weights.
1709.217 Grant award.
1709.218-1709.300 [Reserved]
Subparts D-F [Reserved]
Subpart G_Recovery of Financial Assistance Used for Unauthorized
Purposes
1709.601 Policy.
[[Page 93]]
1709.602-1709.999 [Reserved]
Authority: 5 U.S.C. 301, 7 U.S.C. 901 et seq.
Source: 70 FR 5351, Feb. 2, 2005, unless otherwise noted.
Subpart A_General Requirements
Sec. 1709.1 Purpose.
The purpose of the Rural Utilities Service (RUS) Assistance to High
Energy Cost Rural Communities Program is to help local communities meet
their energy needs through direct loans and grants for energy facilities
in qualifying extremely high energy cost communities, grants and loans
to the Denali Commission for extremely high energy cost communities in
Alaska, and grants to States to support revolving funds to finance more
cost effective means of acquiring fuel in qualifying communities. This
subpart sets forth definitions and requirements which are common to all
grant and loan programs in this part administered by the RUS Electric
Program under section 19 of the Rural Electrification Act of 1936, as
amended (RE Act) (7 U.S.C. 918a).
Sec. 1709.2 Policy. [Reserved]
Sec. 1709.3 Definitions.
Administrator means the Administrator of the Rural Utilities Service
(RUS), United States Department of Agriculture (USDA).
Agency means the Rural Utilities Service (RUS), an agency of the
United States Department of Agriculture (USDA), or a successor agency.
Census block means the smallest geographic entity for which the U.S.
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 Bureau comprising a dense concentration of population
that is not within an incorporated place but is locally identified by a
name and which has boundaries defined on census maps.
Electric program means the office within RUS, and its successor
organization, that administers rural electrification programs authorized
by the Rural Electrification Act of 1936 (RE Act) (7 U.S.C. 901 et seq.)
and such other programs so identified in USDA regulations.
Extremely high energy costs means community average residential
energy costs that are at least 275 percent of one or more home energy
cost benchmarks identified by RUS and based on the latest available
information on national average residential energy expenditures as
reported by the Energy Information Administration (EIA) of the United
States Department of Energy.
Financial assistance means a grant, loan, or grant-loan combination
issued under this part.
Home energy means any energy source or fuel used by a household for
purposes other than transportation, including electricity, natural gas,
fuel oil, kerosene, liquified 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 RUS
for eligibility as an extremely high energy cost community. Extremely
high energy cost benchmarks are calculated as 275 percent of the
relevant national average household energy benchmarks.
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.
State means any of the several States of the United States, and,
where provided by law, any Territory of the United States or other area
authorized to receive the services and programs of the Rural Utilities
Service or the Rural Electrification Act of 1936, as amended.
[[Page 94]]
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.
Sec. 1709.4 Allocation of available funds among programs.
The Administrator, in his sole discretion, shall allocate available
funds among the programs administered under this part and determine the
grant application periods under each program. In making fund allocations
for each fiscal year, the Administrator may consider the amount of
available funds, the nature and amount of unfunded grant applications
and prior awards, Agency resources, Agency priorities, and any other
pertinent information.
Sec. 1709.5 Determination of energy cost benchmarks.
(a) The Administrator shall establish, using the most recent data
available, and periodically revise, the home energy cost benchmarks and
the high energy cost benchmarks used to determine community eligibility
for high energy cost grant and loan programs and the Denali Commission
high energy cost grants and loans. In setting these energy cost
benchmarks, the Administrator shall review the latest available
information on home energy costs published by the EIA. High energy cost
benchmarks will be set at 275 percent of the applicable national average
home energy cost benchmark as determined by the Administrator from the
published EIA data. Eligibility benchmarks shall be published in each
grant announcement.
(b) For use in determining eligibility for High Energy Cost Grants,
the Administrator may establish benchmarks for national average annual
household expenditures and for national average household per unit
energy expenditures for major home energy sources or fuels, including,
but not limited to, electricity, natural gas, fuel oil, kerosene,
liquified petroleum gas (propane), other petroleum products, wood and
other biomass fuels, coal, wind and solar energy.
Sec. 1709.6 Appeals.
An applicant may appeal a decision by the Assistant Administrator,
Electric Program rejecting an application for failure to meet
eligibility requirements. Applicants may not appeal rating panel scores
or rankings. An appeal must be made, in writing to the Administrator,
within 10 days after the applicant is notified of the determination to
reject the application. Appeals must state the basis for the appeal and
shall be submitted to the Administrator, Rural Utilities Service, U.S.
Department of Agriculture, 1400 Independence Ave., SW., STOP 1500,
Washington, DC 20250-1500. Thereafter, the Administrator will review the
appeal to determine whether to sustain, reverse, or modify the original
determination. The Administrator's determination shall be final. A
written copy of the Administrator's decision will be furnished promptly
to the applicant.
Sec. 1709.7 Applicant eligibility.
An outstanding judgment obtained against an applicant by the United
States in a Federal Court (other than in the United States Tax Court),
which has been recorded, shall cause the applicant to be ineligible to
receive a grant or loan under this part until the judgment is paid in
full or otherwise satisfied. RUS financial assistance under this part
may not be used to satisfy the judgment.
Sec. 1709.8 Electronic submission.
Applicants may submit applications and reports electronically if so
provided in the applicable grant announcement and grant agreements or if
other regulations provide for electronic submission. Any electronic
submissions must be in the form prescribed in the applicable grant
announcement, grant agreement, or regulation.
Sec. 1709.9 Grant awards and advance of funds.
The grantee must execute a grant agreement that is acceptable to the
Agency. The grantee must sign and return the grant agreement to the
Agency, within the time specified, before any grant funds will be
advanced.
[[Page 95]]
Sec. 1709.10 Ineligible grant purposes.
Grant funds under this part may not be used to:
(a) Pay costs of preparing the application package for funding under
programs in this part, or for any finders fees or incentives for persons
or entities assisting in the preparation or submission of an
application.
(b) Fund political activities;
(c) Pay any judgment or debt owed to the United States; or
(d) Pay construction costs of the project incurred prior to the date
of grant award except as provided herein. Construction work should not
be started and obligations for such work or materials should not be
incurred before the grant is approved.
(1) Applicants may request Agency approval for reimbursement of pre-
award construction obligations if there are compelling reasons for
proceeding with construction before grant approval. Such requests may be
approved if the Agency determines that:
(i) Compelling reasons, as determined by the Agency, exist for
incurring obligations before grant approval;
(ii) The obligations will be incurred for authorized grant purposes;
(iii) All environmental requirements applicable to the Agency and
the applicant have been met;
(iv) The applicant has the legal authority to incur the obligations
at the time proposed, and payment of the debts will remove any basis for
any mechanic's, material, or other liens that may attach to the grant
financed property: and
(v) The expenditure is incurred no more than 18 months before the
date of the Administrator's approval of the grant award.
(2) The Agency may authorize payment of approved pre-award project
construction obligations at the time of award approval. The applicant's
request and the Agency's authorization for paying such obligations shall
be in writing.
Sec. 1709.11 Award conditions.
In addition to all other grant requirements, all approved applicants
will be required to do the following:
(a) Enter into a grant agreement with the Agency in form and
substance acceptable to the Agency;
(b) Request advances or reimbursements, as applicable, as provided
in the grant agreement; and
(c) Maintain a financial management system that is acceptable to the
Agency.
Sec. 1709.12 Reporting requirements.
To support Agency monitoring of project performance and use of grant
funds, Grantees shall file periodic reports, required under 7 CFR part
3015, as provided in this part, and the grant agreement as follows:
(a) A financial status report listing project expenditures by budget
category in such form and at such times as provided in the grant
agreement.
(b) Project performance reports in such form and at such intervals
as provided in the grant agreement. The project performance report shall
compare accomplishments to the objectives stated in the proposal and
grant agreement. The project performance report should identify all
completed tasks with supporting documentation. If the project schedule
as approved in the grant agreement is not being met, the report should
discuss the problems or delays that may affect completion of the
project. Objectives for the next reporting period should be listed.
Compliance with any special condition on the use of award funds should
be discussed. Reports are due as provided in the grant agreement.
(c) A final project performance report with supporting documentation
in such form and at the time specified in the grant agreement.
(d) Such other reports as the Agency determines are necessary to
assure effective grant monitoring as part of the grant agreement or the
grant announcement as a condition of the grant award or advances of
funds.
Sec. 1709.13 Grant administration.
The authority to approve administrative actions is vested in the
Administrator except as otherwise provided in the RUS delegations of
authority. Administration of RUS grants is governed by the provisions of
this subpart and subpart B of this part, the terms of the
[[Page 96]]
grant agreement and, as applicable, the provisions of 7 CFR parts 3015,
3016 and 3017, or their successors.
Sec. 1709.14 Inspections.
The grantee will permit periodic inspection of the grant project
operations by a representative of the Agency.
Sec. 1709.15 Grant closeout.
Grant closeout is when all required work is completed,
administrative actions relating to the completion of work and
expenditure of funds have been accomplished, the final project report
has been submitted and found acceptable by RUS and RUS accepts final
expenditure information. No monitoring action by RUS of the grantee is
required after grant closeout. However, grantees remain responsible in
accordance with the terms of the grant agreement for compliance with
conditions on property acquired or derived through grant funds.
Sec. 1709.16 Performance reviews.
Each grant agreement shall include performance criteria and RUS will
regularly evaluate the progress and performance of grantee according to
such criteria. If the grantee does not comply with or does not meet the
performance criteria set out in the grant agreement, the Administrator
may require amendment of the grant agreement, or may suspend or
terminate the grant pursuant to 7 CFR 2015, subpart N.
Sec. 1709.17 Environmental review.
(a) All grants made under this subpart are subject to the
requirements of 7 CFR part 1794 or its successor.
(b) Applicants must address environmental aspects of their projects
in the grant application in sufficient detail to allow the Agency to
categorize the project for purposes of compliance with environmental
review requirements. The grant announcement will establish the form and
content of the environmental information required for the application.
(c) Projects that are selected for grant awards by the Administrator
will be reviewed by the Agency under 7 CFR part 1794 prior to final
award approval. The Agency may require the selected applicant to submit
additional information, including an environmental report, environmental
assessment, or environmental impact statement, as may be required,
concerning the proposed project in order to complete the required
reviews and to develop any project-specific conditions for the final
grant agreement.
Sec. 1709.18 Civil rights.
This program will be administered in accordance with applicable
Federal Civil Rights Law. All grants made under this subpart are subject
to the requirements of title VI of the Civil Rights Act of 1964, which
prohibits discrimination on the basis of race, color or national origin.
In addition, all grants made under this subpart are subject to the
requirements of section 504 of the Rehabilitation Act of 1973, as
amended, which prohibits discrimination on the basis of disability; the
requirements of the Age Discrimination Act of 1975, which prohibits
discrimination on the basis of age; and title III of the Americans with
Disabilities Act, which prohibits discrimination on the basis of
disability by private entities in places of public accommodations.
Grantees are required to comply with certain regulations on
nondiscrimination in program services and benefits and on equal
employment opportunity including 7 CFR parts 15 and 15b; and 45 CFR part
90, as applicable.
Sec. 1709.19 Other USDA regulations.
The grant programs under this part are subject to the provisions of
other departmental regulations, including but not limited to the
following departmental regulations, or their successors, as applicable:
(a) 7 CFR part 3015, Uniform Federal Assistance Regulations;
(b) 7 CFR part 3016, Uniform Administrative Requirements for Grants
and Cooperative Agreements to State and Local Governments;
(c) 7 CFR part 3017, Governmentwide Debarment and Suspension
(Nonprocurement) and Governmentwide Requirements for Drug-Free Workplace
(Grants);
(d) 7 CFR part 3018, New Restrictions on Lobbying;
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(e) 7 CFR part 3019, Uniform Administrative Requirements for Grants
and Agreements with Institutions of Higher Education, Hospitals and
Other Non-profit Organizations; and
(f) 7 CFR part 3052, Audits of States, Local Governments and Non-
profit Organizations.
Sec. 1709.20 Member delegate clause.
Each grant agreement under this part shall provide that no member of
Congress shall be admitted to any share or part of a grant program or
any benefit that may arise there from, but this provision shall not be
construed to bar as a contractor under a grant a publicly held
corporation whose ownership might include a member of Congress.
Sec. 1709.21 Audit requirements.
The grantee shall provide the Agency with an audit for each year,
beginning with the year in which a portion of the financial assistance
is expended, in accordance with the following:
(a) If the grantee is a for-profit entity, an RUS Electric or
Telecommunication borrower or any other entity not covered by paragraph
(b) of this section, the recipient shall provide an independent audit
report in accordance with 7 CFR part 1773, ``Policy on Audits of RUS
Borrowers'' and the grant agreement.
(b) If the grantee is a State or local government, or a non-profit
corporation (other than an RUS Electric or Telecommunication Borrower),
the recipient shall provide an audit in accordance with 7 CFR part 3052.
Sec. 1709.22 Project changes.
The Grantee shall obtain prior written approval from the Agency for
any change to the scope or objectives of the approved grant project.
Sec. Sec. 1709.23-1709.99 [Reserved]
Sec. 1709.100 OMB control number.
The information collection requirements in this part are approved by
the Office of Management and Budget and assigned OMB control number
0572-0136.
Subpart B_RUS High Energy Cost Grant Program
Sec. 1709.101 Purpose.
This subpart establishes policies and procedures for the Rural
Utilities Service (RUS) High Energy Cost Grant Program under section
19(a)(1) of the Rural Electrification Act of 1936, as amended (7 U.S.C.
918a(a)(1)). The purpose of this grant program is to assure access to
adequate and reliable energy services for persons in extremely high
energy cost communities by providing financial assistance to acquire,
construct, extend, upgrade, and otherwise improve energy generation,
transmission, or distribution facilities serving the community.
Sec. 1709.102 Policy.
(a) All high energy cost grants will be awarded competitively
subject to the limited exceptions in 7 CFR 3015.158(d).
(b) RUS may give priority consideration to projects that benefit
smaller rural communities, communities experiencing economic hardship,
projects that extend service to households that lack reliable
centralized or commercial energy services, and projects that correct
imminent hazards to public safety, welfare, the environment or critical
community energy facilities. RUS may also give priority to projects that
are coordinated with State rural development initiatives or that serve a
Federally-identified Empowerment Zone or Enterprise Community (EZ/EC) or
a USDA-identified ``Champion Community.'' Priority consideration will be
provided through the award of additional points under the project
selection criteria as specified in the grant announcement.
Sec. Sec. 1709.103-1709.105 [Reserved]
Sec. 1709.106 Eligible applicants.
(a) Eligible applicants for grants to fund projects serving eligible
extremely high energy cost communities include Persons, States,
political subdivisions of States, and other entities organized under the
laws of States.
(b) Eligible applicants may be for-profit or non-profit business
entities
[[Page 98]]
including but not limited to corporations, associations, partnerships,
limited liability partnerships (LLPs), cooperatives, trusts, and sole
proprietorships.
(c) Eligible government applicants include State and local
governments, and agencies and instrumentalities of States and local
governments.
(d) Indian tribes, other tribal entities, and Alaska Native
Corporations are eligible applicants.
(e) Individuals are also eligible applicants under this program,
however the proposed grant project must provide community benefits and
not be for the sole benefit of the individual applicant or an individual
household.
(f) As a condition of eligibility, the applicant must demonstrate
the capacity:
(1) to enter into a binding grant agreement with the Federal
Government at the time of the award approval; and
(2) to carry out the proposed grant project according to its terms.
Sec. 1709.107 Eligible communities.
(a) An eligible community under this program is one in which the
average home energy costs exceed 275 percent of the national average
under one or more high energy cost benchmarks established by RUS based
on the latest available residential energy information from the Energy
Information Administration (EIA) of the United States Department of
Energy. RUS will update the national and high energy cost community
benchmarks periodically to incorporate any changes in national home
energy costs reported by EIA. RUS will publish the high energy cost
community benchmark criteria in the grant announcement. Community
eligibility will be determined by RUS at the time of application based
on the criteria published in the applicable grant announcement.
(b) The Application must include information demonstrating that each
community in the grant's proposed target area exceeds one or more of the
RUS high energy cost community benchmarks to be eligible for assistance
under this program. The smallest area that may be designated as a target
area is a 2000 Census block
(c) The target community may include an extremely high cost to serve
portion of a larger service area that does not otherwise meet the
criteria, provided that the applicant can establish that the costs to
serve the smaller target area exceed the benchmark.
(d) In determining the community energy costs, applicants may
include additional revenue sources that lower the rates or out of pocket
consumer energy costs such as rate averaging, and other Federal, State,
or private cost contributions or subsidies.
(e) The applicant may propose a project that will serve high energy
cost communities across a State or region, but where individual project
beneficiaries will be selected at a later time. In such cases, to
establish eligibility, the applicant must provide sufficient information
in the application to determine that the proposed target area includes
eligible high energy cost communities and proposed selection criteria to
assure that grant funds are used to serve eligible communities.
Sec. 1709.108 Supporting data for determining community eligibility.
The application shall include the following:
(a) Documentation of energy costs. Documents or references to
published or other sources for information or data on home energy
expenditures or equivalent measures used to support eligibility, or
where such information is unavailable or does not adequately reflect the
actual cost of average home energy use in a local community, reasonable
estimates of commercial energy costs.
(b) Served areas. A comparison of the historical residential energy
cost or expenditure information for the local commercial energy
provider(s) serving the target community or target area with the
benchmark criteria published by the Agency.
(c) Engineering estimates. Estimates based on engineering standards
may be used in lieu of historical residential energy costs or
expenditure information under the following circumstances:
(1) Where historical community energy cost data are unavailable
(unserved areas), incomplete or otherwise inadequate;
[[Page 99]]
(2) Where the target area is not connected to central station
electric service to a degree comparable with other residential customers
in the State or region.
(3) Where historic energy costs do not reflect the costs of
providing a necessary upgrade or replacement of energy infrastructure
that would have the effect of raising costs above one or more of the
Agency benchmarks.
(d) Independent Agency review. Information to support high energy
cost eligibility is subject to independent review by the Agency. The
Agency may reject applications that are not based on credible data
sources or sound engineering estimates.
Sec. 1709.109 Eligible projects.
Eligible projects are those that acquire, construct, extend, repair,
upgrade or otherwise improve energy generation, transmission or
distribution facilities serving communities with extremely high energy
costs. All energy generation, transmission and distribution facilities
and equipment used to provide or improve electricity, natural gas, home
heating fuels, and other energy services to eligible communities are
eligible. Projects providing or improving service to communities with
extremely high energy costs through on-grid and off-grid renewable
energy technologies, energy efficiency, and energy conservation projects
and services 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. Examples of eligible activities
include, but are not limited to, the acquisition, construction,
replacement, repair, or improvement of:
(a) Electric generation, transmission, and distribution facilities,
equipment, and services serving the eligible community;
(b) Natural gas distribution or storage facilities and associated
equipment and activities serving the eligible community;
(c) Petroleum product storage and handling facilities serving
residential or community use.
(d) Renewable energy facilities used for on-grid or off-grid
electric power generation, water or space heating, or process heating
and power for the eligible community;
(e) Backup up or emergency power generation or energy storage
equipment, including distributed generation, to serve the eligible
community; and
(f) Implementation of cost-effective energy efficiency, energy
conservation measures that are part of the implementation of a
coordinated demand management or energy conservation program for the
eligible community, such as, for example, weatherization of residences
and community facilities, or acquisition and installation of energy-
efficient or energy saving appliances and devices .
Sec. 1709.110 Use of grant funds.
(a) Project development costs. Grants may be used to fund the costs
and activities associated with the development of an eligible energy
project. RUS will in no case approve the use of grant funds to be used
solely or primarily for project development costs. Eligible project
development costs must be reasonable and directly related to the project
and may include the following:
(1) Costs of conducting, or hiring a qualified consultant to
conduct, a feasibility analysis of the proposed project to help
establish the financial and technical sustainability of the project,
provided that such costs do not exceed more than 10 percent of total
project costs;
(2) Design and engineering costs, including costs of environmental
and cultural surveys and consulting services necessary to the project
and associated environmental review, siting and permit approvals; and
(3) Fees for legal and other professional services directly related
to the project.
(b) Construction costs. Grant funds may be used for the reasonable
costs of construction activities, including initial construction,
installation, expansion, extension, repair, upgrades, and related
activities, including the rental or lease of necessary equipment, to
provide or improve energy generation, transmission, or distribution
facilities or services;
(c) Acquisitions and purchase. Grant funds may be used for the
acquisition
[[Page 100]]
of property, equipment, and materials, including the purchase of
equipment, and materials, the acquisition or leasing of real or personal
property, equipment, and vehicles associated with and necessary for
project development, construction, and operation. Grant funds may be
used for the acquisition of new or existing facilities or systems where
such action is a cost-effective means to extend or maintain service to
an eligible community or reduces the costs of such service for the
primary benefit of community residents.
(d) Grantee cost contributions. Grant funds may be applied as
matching funds or cost contributions under Federal or other programs
where the terms of those programs so allow use of other Federal funds.
Sec. 1709.111 Limitations on use of grant funds.
(a) Planning and administrative costs. Not more than 4 percent of
each grant award may be used for the planning and administrative
expenses of the applicant that are unrelated to the grant project.
(b) Unproven technology. Only projects that utilize technology with
a proven operating history, and for which there is an established
industry for the design, installation, and service (including spare
parts) of the equipment, are eligible for funding. Energy projects
utilizing experimental, developmental, or prototype technologies or
technology demonstrations are not eligible for grant funds. The
determination by RUS that a project relies on unproven technology shall
be final.
Sec. 1709.112 Ineligible grant purposes.
(a) Grant funds may not be used for the costs of preparing the grant
application, finders fees, fuel purchases, routine maintenance or other
operating costs, or purchase of equipment, structures or real property
not directly associated with providing energy services in the target
community, or, except as provided in Sec. 1709.11(d), project
construction costs incurred prior to the date of the grant award.
(b) 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.
(c) 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.
Sec. 1709.113 Limitations on grant awards.
(a) The Administrator may establish minimum or maximum amount of
funds that may be awarded in a single grant application within in any
grant cycle in order to distribute available grant funds as broadly as
possible. If the Administrator elects to impose a minimum or maximum
grant amount, the limitations will be published in the grant
announcement.
(b) The Administrator may restrict eligible applicants to a single
award of grant funds or to a monetary cap on grant awards within a grant
cycle in order to assure that the available grant funds are distributed
as broadly as possible. If the Administrator elects to impose a limit or
cap on grant awards, the terms will be established in the grant
announcement.
Sec. 1709.114 Application process.
The RUS will request applications for high energy cost grants on a
competitive basis by publication of a grant announcement as a Notice of
Funds Availability (NOFA) or Notice of Funding Opportunity. The grant
announcement will establish the amount of funds available, the
application package contents and additional requirements, the
availability of application materials, high energy cost community
eligibility benchmarks, selection criteria and weights, priority
considerations, and deadlines and procedures for submitting
applications.
Sec. 1709.115 Availability of application materials.
Application materials, including copies of the grant announcement
and all required forms and certifications will be available by request
from the Agency and by such other means as the Agency may determine. In
addition, the Agency may make available an application guide and other
materials
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that may be of assistance to prospective applicants.
Sec. 1709.116 Application package.
The requirements for the application package will be established in
the grant announcement. A complete application package will consist of
the standard application for federal assistance (SF-424 series), as
applicable, a narrative project proposal prepared in accordance with the
grant announcement, an RUS environmental profile, and such other
supporting documentation, forms, and certifications as required in the
grant announcement and this part.
Sec. 1709.117 Application requirements.
(a) Required forms. The forms required for application and where to
obtain them will be specified in the announcement. All required forms
must be completed, signed and submitted by a person authorized to submit
the proposal on behalf of the applicant. For applications and forms that
are submitted electronically, the application must be authenticated as
provided in the grant announcement. In the case of grant applications
submitted electronically, the applicant may be required to provide
signed originals of required forms prior to and as a condition of the
grant award.
(b) Narrative proposal. Each application must include a narrative
proposal describing the proposed project and addressing eligibility and
selection criteria. The grant announcement will specify the contents,
order, and format for the narrative proposal. The proposal must include
all the required elements identified in this subsection. The grant
announcement may establish additional required elements that must be
addressed in the narrative project proposal.
(1) Executive summary. A summary of the proposal should briefly
describe the project including target community, goals, tasks to be
completed and other relevant information that provides a general
overview of the project. The applicant must clearly state the amount of
grant funds requested and identify any priority ratings for which the
applicant believes it is qualified.
(2) Applicant eligibility. The narrative and supporting
documentation must describe the applicant and establish its eligibility.
(3) Community eligibility. This section must describe the target
area and communities to be served by the project and demonstrate
eligibility. The applicant must clearly identify the:
(i) Location and population of the areas to be served by the
project;
(ii) Population of the local government division to which they
belong;
(iii) Identity of local energy providers; and
(iv) Sources of the high energy cost data and estimates used.
(4) Project eligibility. The narrative must describe the proposed
project in sufficient detail to establish that it is an eligible
project.
(5) Project description. The project description must:
(i) Describe the project design, materials, and equipment in
sufficient detail to support a finding of technical feasibility;
(ii) Identify the major tasks to be performed and a proposed
timeline for completion of each task; and
(iii) Identify the location of the project target area and the
eligible extremely high energy cost communities to be served.
(6) Project management. The applicant must describe how and by whom
the project will be managed during construction and operation. The
description should address the applicant's organizational structure, key
project personnel and the degree to which full time employees,
affiliated entities or contractors will be utilized. The applicant must
describe the identities, legal relationship, qualifications and
experience of those persons that will perform project management
functions. If the applicant proposes to use the equipment or design,
construction and other services from non-affiliated entities, the
applicant must describe how it plans to contract for such equipment or
services.
(7) Budget. The budget narrative must present a detailed breakdown
of all estimated costs and allocate these costs among the listed tasks
in the work plan. All project costs, not just grant funds, must be
accounted for in
[[Page 102]]
the budget. A pro forma operating budget for the first year of
operations must also be included. The detailed budget description must
be accompanied by SF-424A, ``Budget Information--Non-Construction
Programs,'' or SF-424C ``Budget Information--Construction Programs,'' as
applicable.
(8) Project goals and objectives. The applicant must identify
unambiguous measures for expected cost reduction, efficiencies or other
improvements and the degree to which the incremental benefit will be
enjoyed by residents of the eligible community. The description should
specifically address how the project will provide or improve energy
generation, transmission or distribution services in the target area.
The project objectives and proposed evaluation measures will be the
basis for project performance measures in the grant agreement.
(9) Performance measures. The application must include specific
criteria for measuring project performance. These proposed criteria will
be used in establishing performance measures incorporated in the grant
agreement in the event the proposal receives funding under this subpart.
These suggested criteria are not binding on the Agency. Appropriate
measures of project performance include expected reductions in home
energy costs, avoided cost increases, enhanced reliability, new
households served, or economic and social benefits from improvements in
energy services.
(10) Proposal evaluation and selection criteria. The application
must address individually and in narrative form each of the proposal
evaluation and selection criteria referenced in the grant announcement.
(11) Rural development initiatives. The proposal 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.
(12) Environmental profile. The application must include information
about project characteristics and site specific conditions that may
involve environmental, historic preservation and other resource issues.
This information must be presented in sufficient detail so as to
facilitate the Agency's identification of projects that may require
additional environmental review under 7 CFR part 1794 before a grant
award can be approved. The format and requirements for the environmental
profile will be established in the grant announcement.
(13) Regulatory and other required project approvals. The applicant
must identify all regulatory or other approvals required by other
Federal, State, local, tribal or private entities (including conditions
precedent to financing) that are necessary to carry out the proposed
project and an estimated schedule for obtaining the necessary permits
and approvals.
Sec. 1709.118 Submission of applications.
Unless otherwise provided in the grant announcement, a complete
original application package and two copies must be submitted by the
application deadline to RUS at the address specified in the applicable
announcement. Instructions for submittal of applications electronically
will be established in the grant announcement.
Sec. 1709.119 Review of applications.
(a) RUS will review each application package received to determine
whether the applicant is eligible and whether the application is timely,
complete, and responsive to the requirements set forth in the grant
announcement.
(b) RUS may, at its discretion, contact the applicant to clarify or
supplement information in the application needed to determine
eligibility, identifying information, and grant requests to allow for
informed review. Failure of the applicant to provide such information in
response to a written request by the Agency within the time frame
established by the Agency may result in rejection of the application.
(c) After consideration of the information submitted, the Assistant
Administrator, Electric Program will determine whether an applicant or
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project is eligible and whether an application is timely, complete, and
responsive to the grant announcement and shall notify the applicant in
writing. The Assistant Administrator's decision on eligibility may be
appealed to the Administrator.
Sec. 1709.120 Evaluation of applications.
(a) The Agency will establish one or more rating panels to review
and rate the grant applications. The panels may include persons not
employed by the Agency.
(b) All timely and complete applications that meet the eligibility
requirements will be referred to the rating panel. The rating panel will
evaluate and rate all referred applications according to the evaluation
criteria and weights established in the grant announcement. Panel
members may make recommendations for conditions on grant awards to
promote successful performance of the grant or to assure compliance with
other Federal requirements.
(c) After the rating panel has evaluated and scored all proposals,
in accordance with the point allocation specified in the grant
announcement, the panel will prepare a list of all applications in rank
order, together with funding level recommendations and recommendations
for conditions, if any.
(d) The list of ranked projects and rating panel recommendations
will be forwarded to the Administrator for review and selection.
Sec. 1709.121 Administrator's review and selection of grant awards.
(a) The final decision to make an award is at the discretion of the
Administrator. The Administrator shall make any selections of finalists
for grant awards after consideration of the applications, the rankings,
comments, and recommendations of the rating panel, and other pertinent
information.
(b) Based on consideration of the application materials, ranking
panel ratings, comments, and recommendations, and other pertinent
information, the Administrator may elect to award less than the full
amount of grant requested by an applicant. Applicants will be notified
of an offer of a reduced or partial award. If an applicant does not
accept the Administrator's offer of a reduced or partial award, the
Administrator may reject the application and offer an award to the next
highest ranking project.
(c) The projects selected by the Administrator will be funded in
rank order to the extent of available funds.
(d) In the event an insufficient number of eligible applications are
received in response to a published grant announcement and selected for
funding to exhaust the funds available, the Administrator reserves the
discretion to reopen the application period and to accept additional
applications for consideration under the terms of the grant
announcement. A notice regarding the reopening of an application period
will be published in the Federal Register.
Sec. 1709.122 Consideration of eligible grant applications under later grant announcements.
At the discretion of the Administrator, the grant announcement may
provide that all eligible but unfunded proposals submitted under
preceding competitive grant announcements may also be considered for
funding. This option is provided to reduce the burden on applicants and
the Agency. The grant announcement shall indicate how applicants may
request reconsideration of previously submitted, but unfunded,
applications and how they may supplement their applications.
Sec. 1709.123 Evaluation criteria and weights.
(a) Establishing evaluation criteria and weights. The grant
announcement will establish the evaluation criteria and weights to be
used in ranking the grant proposals submitted. Unless supplemented in
the grant announcement, the criteria listed in this section will be used
to evaluate proposals submitted under this program. Additional criteria
may be included in the grant announcement. In establishing evaluation
criteria and weights, the total points that may be awarded for project
design and technical merit criteria shall not be less than 65 percent of
the total available points, and the total points awarded for priority
criteria shall not be more than 35 percent of
[[Page 104]]
the total available points. The distribution of points to be awarded per
criterion will be identified in the grant announcement.
(b) Project design and technical merit. In reviewing the grant
proposal's project design and technical merit, reviewers will consider
the soundness of the applicant's approach, the project's technical and
financial feasibility, the adequacy of financial and other resources,
the capabilities and experience of the applicant and its project
management team, the project goals, and identified community needs and
benefits. Points will be awarded under the following project elements:
(1) Comprehensiveness and feasibility. Reviewers will assess the
technical and economic feasibility of the project and how well its goals
and objectives address the challenges of the eligible communities. The
panel will review the proposed design, construction, equipment and
materials for the proposed energy facilities to determine technical
feasibility. Reviewers may propose additional conditions on the grant
award to assure that the project is technically sound. Budgets will be
reviewed for completeness and the strength of non-Federal funding
commitments. Points may not be awarded unless sufficient detail is
provided to determine whether or not funds are being used for qualified
purposes. 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. Reviewers must make a finding of
operational sustainability for any points to be awarded. Projects for
which future grant funding is likely to be required in order to assure
ongoing operations will not receive any points.
(2) Demonstrated experience. Reviewers will consider whether the
applicant or its project team have demonstrated experience in
successfully administering and carrying out projects that are comparable
to that proposed in the application. The reviewers may assign a higher
point score to proposals that develop the internal capacity to provide
or improve energy services in the eligible communities over other
proposals that rely extensively on temporary outside contractors.
(3) Community needs. Reviewers will consider the applicant's
assessment of community energy needs to be addressed by the proposed
project as well as the severity of physical and economic challenges
affecting the target communities. In determining whether one proposal
should receive more points than another under this criterion, reviewers
will consider the relative burdens placed on the communities and
individual households by extremely high energy costs, the hardships
created by limited access to reliable and affordable energy services and
the availability of other resources to support or supplement the
proposed grant funding.
(4) Project evaluation and performance measures. Reviewers will
consider the applicant's suggested project evaluation and performance
criteria. Reviewers may award higher points to criteria that are
quantifiable, directly relevant to project goals, and reflect serious
consideration than to more subjective performance criteria that do not
incorporate variables that reflect a reduction in energy cost or
improvement in service.
(5) Coordination with rural development initiatives. Proposals that
include documentation confirming coordination with State rural
development initiatives may be credited points for this criterion.
(c) Priority considerations. Subject to the limitation in paragraph
(a) of this section, evaluation points may also be awarded for projects
that advance identified priority interests identified in the grant
announcement to assist the Agency in selecting among competing projects
when the amount of funding requests exceed available funds. The grant
announcement may incorporate all or some of the priority criteria listed
below, and as discussed in paragraph (a) of this section, the grant
announcement may supplement these criteria. The announcement will also
specify the
[[Page 105]]
points that will be awarded to qualifying applications under these
priority criteria.
(1) Community economic hardship. Economic hardship points may be
awarded where the median household income for the target community is
significantly below the State average or where the target community
suffers from economic conditions that severely constrain its ability to
provide or improve energy facilities serving the community. Applicants
must describe in detail and document conditions creating severe
community economic hardship in the proposal.
(2) Rurality. Priority consideration may be given to proposals that
serve smaller rural communities. 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 as determined using the latest available population figures from
the U.S. Census Bureau.
(3) Unserved energy needs. Points may be awarded to projects that
extend or improve electric or other energy services to eligible
communities or areas of eligible communities that do not have reliable
centralized or commercial service.
(4) Imminent hazard. Additional points may be awarded for projects
that 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.
(5) Cost sharing. Projects that evidence significant commitments of
funds, contributed property, equipment, or other in kind support for the
project may be awarded additional points for this criterion where the
aggregate value of these contributions exceed ten percent of total
eligible project costs.
Sec. 1709.124 Grant award procedures.
(a) Notification of applicants. The Agency will notify all
applicants in writing whether they have been selected for a grant award.
Applicants that have been selected as finalists for a competitive grant
award will be notified in writing of their selection and advised that
the Agency may request additional information in order to complete the
required environmental review under 7 CFR 1794 and to meet other pre-
award conditions.
(b) Letter of conditions. The Agency will notify each applicant
selected as a finalist in writing setting out the amount of grant funds
and the terms and conditions under which the grant will be made and
requesting that the applicant indicate in writing its intent to accept
these conditions.
(c) Applicant's intent to meet conditions. Upon reviewing the
conditions and requirements in the letter of conditions, the selected
applicant must notify the agency in writing within the time period
indicated, of its acceptance of the conditions, or if the proposed
certain conditions cannot be met, the applicant must so advise the
Agency and may propose alternate conditions. The Agency must concur with
any changes proposed to the letter of conditions by the applicant before
the application will be further processed.
(d) Grant agreement. The Agency and the grantee must sign a grant
agreement acceptable to the Agency prior to the advance of funds.
Sec. Sec. 1709.125-1709.200 [Reserved]
Subpart C_Bulk Fuel Revolving Fund Grant Program
Sec. 1709.201 Purpose.
This subpart establishes policies and procedures for the Rural
Utilities Service (RUS) State Bulk Fuel Revolving Fund Grants. The
purpose of this grant program is to assist State entities in
establishing and supporting a revolving fund to provide a more cost-
effective means of purchasing fuel for communities where the fuel cannot
be shipped by means of surface transportation.
Sec. 1709.202 Policy. [Reserved]
Sec. 1709.203 Definitions.
As used in this subpart, the following definitions apply:
Eligible area means any area that is primarily dependent on delivery
of fuel
[[Page 106]]
by water or air for a significant part of the year and where fuel cannot
be shipped routinely by means of surface transportation either because
of absolute physical constraints or because surface transportation is
not practical or is prohibitively expensive.
Fuel means oil, diesel fuel, gasoline and other petroleum products,
coal, and any other material that can be burned to make energy.
State entity means a department, agency, or instrumentality of any
State.
Surface transportation means transportation by road, rail or
pipeline.
Sec. Sec. 1709.204-1709.206 [Reserved]
Sec. 1709.207 Eligible applicants.
Eligible applicants are restricted to State entities in existence as
of November 9, 2000. Eligible State entities may partner with other
entities, including other government agencies, in carrying out the
programs funded by this program. Each applicant must demonstrate that it
has the authority to enter into a binding agreement with the Federal
Government to carry out the grant activities.
Sec. 1709.208 Use of grant funds.
Grant funds must be used to establish and support a revolving loan
fund that facilitates cost effective fuel purchases for persons,
communities, and businesses in eligible areas. Where a recipient State
entity's existing program is authorized to fund multiple purposes, grant
funds may only be used to the extent the recipient fund finances
eligible activities.
Sec. 1709.209 Limitations on use of grant funds.
Not more than 4 percent of the grant award may be used for the
planning and administrative expenses of the grantee.
Sec. 1709.210 Application process.
(a) Applications. The Agency will solicit applications on a
competitive basis by publication of a grant announcement establishing
the amount of funds available, the maximum grant award, the required
application materials and where to obtain them, the evaluation and
selection criteria and weights, and application deadlines. Unless
otherwise specified in the announcement, applicants must file an
original application package and two copies. Where provided in the grant
announcement, applicants may submit electronic applications.
(b) Required forms. The grant application will use the Standard
Application for Federal Assistance (SF-424 series or its successor) and
other forms as provided in the grant announcement. The required forms
must be completed, signed and submitted by a person authorized to submit
the proposal on behalf of the applicants. Where provided in the grant
announcement, applicants may file electronic versions of the forms in
compliance with the instructions in the grant announcement.
(c) Narrative proposal and required elements. Each grant application
must include a narrative proposal describing the project and addressing
the following elements. The form, contents, and order of the narrative
proposal will be specified in the grant announcement. Additional
elements may be published in the applicable grant announcement.
(1) Executive summary. This summary of the proposal must identify
the State entity applying for the grant and the key agency contact
information (telephone and fax numbers, mailing address and e-mail
address). The applicant must clearly state the amount requested in this
section. It should briefly describe the program, including the estimated
number of potential beneficiaries in eligible areas, their estimated
fuel needs, the projects and activities to be financed through the
revolving fund and how the projects and activities will improve the cost
effectiveness of fuel procured.
(2) Applicant eligibility. The application must establish that the
applicant is a State entity that was in existence as of November 9,
2000, and has the legal authority to enter into a financial assistance
relationship with the Federal Government to carry out the grant
activities.
(3) Assessment of needs and potential beneficiaries. The application
must provide estimates of the number, location and population of
potentially eligible
[[Page 107]]
areas in the State and their estimated fuel needs and costs. The section
must also describe the criteria used to identify eligible areas,
including the characteristics that make fuel deliveries by surface
transport impossible or impracticable. The description of beneficiary
communities should provide a detailed breakdown of the density profile
of the area to be served by eligible projects. Indicate to what extent
persons in eligible areas live outside of communities of 2,500 persons
or more, communities of 5,000 or more or outside of communities of
20,000 or more. All population estimates should be based on Census
Bureau data where available. All representations should be supported
with exhibits such as maps, summary tables and references to official
information sources.
(4) Project description. The application must:
(i) Describe the legal structure and staffing of the revolving fund
proposal for fuel purchase support.
(ii) Identify the objectives of the project, the proposed criteria
for establishing project funding eligibility and how the project is to
be staffed, managed and financed.
(iii) Describe how the potential beneficiaries will be informed of
the availability of revolving fund benefits to them.
(iv) Explain how the proposed revolving fund program will help
provide a more cost-effective means of meeting fuel supply needs in
eligible areas, encourage the adoption of financially sustainable energy
practices, the adequate planning and investment in bulk fuel facility
operations and maintenance and cost-effective investments in energy
efficiency.
(v) If the revolving fund program is not yet operational, a proposed
implementation schedule and milestones should be provided.
(5) Demonstrated experience. The application shall describe past
accomplishments and experiences that are relevant to determine whether
the applicant is capable of administering the grant project.
(6) Budget. The application must include a pro forma operating
budget for the proposed fund and a description of all funding sources.
The level of detail must be sufficient for reviewers to determine that
grant funds will be used only for eligible purposes and to determine the
extent to which the program is entirely dependent on grant funding or
whether it has financial support from the State or other sources.
(7) Performance measures and project evaluation. The application
must provide unambiguous and quantifiable measures that will be used to
evaluate the success and cost-effectiveness of the revolving fund in
assuring adequate fuel supplies for eligible communities and for
assessing the fuel supply projects financed. The grant announcement may
establish additional required elements that must be addressed in the
narrative proposal of the application package.
Sec. 1709.211 Submission of applications.
Completed applications must be submitted to RUS at the address
specified in the grant announcement on or before the deadline specified
in the grant announcement. Instructions for submittal of applications
electronically will be established in the grant announcement. Late
applications will be rejected.
Sec. 1709.212 Application review.
The Agency will review all applications to determine whether the
applicant is eligible and whether the application is timely, complete
and sufficiently responsive to the requirements set forth in the grant
announcement to allow for an informed review. Failure to address any of
the required evaluation criteria or to submit all required forms will
disqualify the proposal. The Agency reserves the right to contact the
applicant to clarify information contained in the proposal to resolve
issues related to eligibility and the grant request. Applications that
are timely, complete, and responsive will be forwarded for further
evaluation. Applications that are late, incomplete, or non-responsive
will be rejected.
Sec. 1709.213 Evaluation of applications.
(a) The Agency will establish one or more rating panels to review
and rate the grant applications. The panels may include persons not
employed by the Agency.
[[Page 108]]
(b) The rating panel will evaluate and rate all complete
applications that meet the eligibility requirements according to the
evaluation and selection criteria and weights established in the grant
announcement. Panel members may make recommendations for conditions on
grant awards to promote successful performance of the grant or to assure
compliance with other Federal requirements.
(c) After all proposals have been evaluated and scored, the
proposals, the rankings, recommendations, and comments of the rating
panel will be forwarded to the Administrator.
Sec. 1709.214 Administrator's review and selection of grant awards.
(a) The final decision to make a grant award is at the discretion of
the Administrator. The Administrator shall consider the applications,
the ranking, comments, and recommendations of the rating panel, and any
other pertinent information before making a decision about which, if
any, applications to approve, the amount of funds awarded, and the order
of approval. The Administrator reserves the right not to make any awards
from the applications submitted. When the Administrator decides not to
make any awards, the Administrator shall document in writing the reason
for the decision.
(b) Decisions on grant awards will be made by the Administrator
after consideration of the applications, the rankings and
recommendations of the rating panel. The Administrator may elect to
award less than the full amount of grant requested by an applicant.
(c) The applications selected by the Administrator will be funded in
rank order to the extent of available funds.
Sec. 1709.215 Consideration of unfunded applications under later grant announcements.
The grant announcement may provide that all eligible but unfunded
proposals submitted under preceding announcements may also be considered
for funding. The announcement shall describe whether and how prior
applicants may request reconsideration and supplement their application
material.
Sec. 1709.216 Evaluation criteria and weights.
Unless supplemented in the grant announcement, the criteria listed
in this section will be used to evaluate proposals submitted under this
program. The total points available and the distribution of points to be
awarded per criterion will be identified in the grant announcement.
(a) Program Design. Reviewers will consider the financial viability
of the applicant's revolving fund program design, the proposed criteria
for establishing eligible projects and borrowers, and how the program
will improve the cost effectiveness of bulk fuel purchases in eligible
areas. Programs demonstrating a strong design and the ability to improve
cost effectiveness will receive more points than applications that are
less detailed.
(b) Assessment of needs. Reviewers will award more points to
programs that serve or give priority to assisting more costly areas than
those that serve populations that suffer from less severe physical and
economic challenges.
(c) Program evaluation and performance measures. Reviewers may award
more points to performance measures that are relevant to the project
objective and quantifiable than to performance measures that are more
subjective and do not incorporate variables that reflect a reduction in
fuel cost or improvement in service.
(d) Demonstrated experience. Applicants may be awarded points for
relevant experience in administering revolving fund or other comparable
programs.
(e) Rurality. Reviewers may award more points to proposals that give
priority in access to funds to communities with low population density
or that are located in remote eligible areas than to proposals that
serve eligible, but less remote and higher population density
communities.
(f) Cost sharing. Although cost-sharing is not required under this
program, projects that evidence significant funding or contributed
property, equipment or other in kind support for the project may be
awarded points for this criterion where the aggregate value of these
contributions exceed 25 percent of the annual funding operations.
[[Page 109]]
(g) Additional priority considerations. The grant announcement may
provide for additional points to be awarded to projects that advance
identified Agency priority interests under this program.
Sec. 1709.217 Grant award.
(a) Notification of applicants. The Agency will notify all
applicants in writing whether or not they have been selected for a grant
award.
(b) Letter of conditions. The Agency will notify a selected
applicant in writing, setting out the amount of grant approved and the
conditions under which the grant will be made.
(c) Applicant's intent to meet conditions. Upon reviewing the
conditions and requirements in the letter of conditions, the selected
applicant must complete, sign and return the Agency's ``Letter of Intent
to Meet Conditions,'' or, if certain conditions cannot be met, the
applicant may propose alternate conditions to the Agency. The Agency
must concur with any changes proposed to the letter of conditions by the
applicant before the application will be further processed.
(d) Grant agreement. The Agency and the grantee must execute a grant
agreement acceptable to the Agency prior to the advance of funds.
Sec. Sec. 1709.218-1709.300 [Reserved]
Subparts D-F [Reserved]
Subpart G_Recovery of Financial Assistance Used for Unauthorized
Purposes
Sec. 1709.601 Policy.
This subpart prescribes the policies of the Rural Utilities Service
(RUS) when it is subsequently determined that the recipient of an
Assistance to High Energy Cost Rural Communities program loan or grant
was not eligible for all or part of the financial assistance received or
that the assistance received was used for unauthorized purposes. It is
the policy of the Agency that when assistance under this part has been
received by an ineligible recipient or used for unauthorized purposes
the Agency shall initiate appropriate actions to recover from the
recipient the sum that is determined to be ineligible or used for
unauthorized purposes, regardless of amount, unless any applicable
statute of limitation has expired. The Agency shall make full use of
available authority and procedures, including but not limited to those
available under 7 CFR part 3015, subpart N.
Sec. Sec. 1709.602-1709.999 [Reserved]