Assistance to High Energy Cost Communities | RD RUS HECG20

Opportunity Information: Apply for RD RUS HECG20

The Assistance to High Energy Cost Communities grant is a competitive funding opportunity run by the USDA Rural Utilities Service (RUS) to help places where residents pay exceptionally high home energy bills. The program targets communities whose average annual residential home energy spending is more than 275 percent of the national average. In practical terms, it is meant for areas where energy is not just expensive, but disproportionately burdensome compared with the rest of the country, and where infrastructure upgrades or alternative energy solutions could materially lower costs or improve reliability.

Up to $10 million total is made available under this opportunity (Funding Opportunity Number: RD RUS HECG20; CFDA: 10.859), with an expected 10 awards and a maximum award size (ceiling) of $3,000,000 per grant. Funding is provided as a discretionary grant, meaning applications are evaluated competitively and awards depend on merit, fit with program goals, and available funds rather than being automatically allocated by formula. The original posting date was February 27, 2020, and the original application deadline was April 27, 2020.

Grant funds can be used for a wide range of community-serving energy projects, especially those that improve the core systems that deliver power to residents. Eligible uses include acquiring, constructing, or improving energy generation, transmission, or distribution facilities that serve an eligible high-energy-cost community. The scope is not limited to conventional utility infrastructure; the opportunity also explicitly supports renewable energy, including both on-grid and off-grid renewable projects. In addition, communities can use funding for energy efficiency and energy conservation projects, which can include measures designed to reduce overall energy consumption or improve how efficiently energy is used across the community, as long as the work clearly supports community energy services rather than private, individual benefit.

A key restriction is that projects cannot be designed primarily to benefit a single household or a single business. The emphasis is on community-level impact: infrastructure and improvements should serve the broader community or a meaningful portion of it. There are also clear limits on what the money cannot cover. Funds may not be used to pay for preparing the grant application itself, may not be used for operating costs, and may not be spent on equipment, structures, or real estate unless those purchases are directly tied to providing community energy services. In other words, the program is meant to pay for tangible, direct project work and assets connected to energy service delivery, not administrative overhead, routine operations, or unrelated capital purchases.

Eligibility is broad and includes many types of applicants that might operate, support, or coordinate community energy solutions. Eligible applicants include state, county, and city or township governments; special district governments; independent school districts; public and state-controlled institutions of higher education; private institutions of higher education; federally recognized Native American tribal governments and other tribal organizations; public housing authorities and Indian housing authorities; nonprofits with or without 501(c)(3) status; individuals; for-profit organizations (including those other than small businesses); and small businesses. The listing also includes an "Others" category that points applicants to additional eligibility details in the full notice, indicating there may be further clarifications or conditions depending on the applicant type or proposed project structure.

Overall, the opportunity is designed to help high-cost energy communities invest in infrastructure, renewable options, and efficiency measures that can reduce energy burden and improve service, with funding focused on capital and implementation needs that deliver community-wide benefits rather than private or purely administrative expenses.

• The Department of Agriculture, Utilities Programs in the business and commerce, community development, energy sector is offering a public funding opportunity titled "Assistance to High Energy Cost Communities" and is now available to receive applicants.
• Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 10.859.
• This funding opportunity was created on Feb 27, 2020.
• Applicants must submit their applications by Apr 27, 2020. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
• Each selected applicant is eligible to receive up to $3,000,000.00 in funding.
• The number of recipients for this funding is limited to 10 candidate(s).
• Eligible applicants include: State governments, County governments, City or township governments, Special district governments, Independent school districts, Public and State controlled institutions of higher education, Native American tribal governments (Federally recognized), Public housing authorities/Indian housing authorities, Native American tribal organizations (other than Federally recognized tribal governments), Nonprofits having a 501(c)(3) status with the IRS, other than institutions of higher education, Nonprofits that do not have a 501(c)(3) status with the IRS, other than institutions of higher education, Private institutions of higher education, Individuals, For profit organizations other than small businesses, Small businesses, Others (see text field entitled Additional Information on Eligibility for clarification).

Apply for RD RUS HECG20

[Watch] Creating a grant proposal using the step-by-step wizard inside the applicant portal: