PART 1709—ASSISTANCE TO HIGH ENERGY COST COMMUNITIES 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 § 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). § 1709.2 [Reserved] § 1709.3 Definitions. Administrator Agency Census block Census designated place (CDP) Electric program et seq. Extremely high energy costs Financial assistance Funding opportunity announcement (FOA) www.Grants.gov Home energy High energy cost benchmarks Indian Tribe et seq. Person State Target area Target community [70 FR 5351, Feb. 2, 2005, as amended at 83 FR 45032, Sept. 5, 2018] § 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. § 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. § 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. § 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. § 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. § 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. § 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. § 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. § 1709.12 Reporting requirements. To support Agency monitoring of project performance and use of grant funds, Grantees shall file periodic reports, required under 2 CFR part 200, as adopted by USDA through 2 CFR part 400, 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. [70 FR 5351, Feb. 2, 2005, as amended at 79 FR 76002, Dec. 19, 2014] § 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 grant agreement and, as applicable, the provisions of 2 CFR part 200, as adopted by USDA through 2 CFR part 400. [70 FR 5351, Feb. 2, 2005, as amended at 79 FR 76002, Dec. 19, 2014] § 1709.14 Inspections. The grantee will permit periodic inspection of the grant project operations by a representative of the Agency. § 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. § 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. 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 2 CFR part 200, as adopted by USDA through 2 CFR part 400. [70 FR 5351, Feb. 2, 2005, as amended at 79 FR 76002, Dec. 19, 2014] § 1709.17 Environmental review. (a) Grants made under this subpart must comply with the environmental review requirements in accordance with 7 CFR part 1970. (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 in accordance with 7 CFR part 1970 prior to final award approval. The Agency may require the selected applicant to submit additional information, 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. [70 FR 5351, Feb. 2, 2005, as amended at 81 FR 11025, Mar. 2, 2016] § 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. § 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) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, 2 CFR part 200, as adopted by USDA through 2 CFR part 400; (b) Drug-Free Workplace Act of 1998 (41 U.S.C. 8101 et. seq. (c) E.O.s 12549 and 12689, Debarment and Suspension, 2 CFR part 180, which is adopted by USDA through 2 CFR part 417; (d) Byrd Anti-Lobbying Amendment (31 U.S.C. 1352), 2 CFR part 418; and (e) Subpart F of 2 CFR 200, as adopted by USDA through 2 CFR 400. [70 FR 5351, Feb. 2, 2005, as amended at 79 FR 76002, Dec. 19, 2014] § 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. § 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 recipient is a for-profit entity, an electric or telecommunications cooperative, or any other entity not covered by the definition of “non-Federal entity” in 2 CFR 200.1, the recipient shall provide an independent audit report in accordance with 7 CFR part 1773 and the grant agreement. (b) If the recipient is a non-Federal entity, as defined in 2 CFR 200.1, the recipient shall provide an audit in accordance with subpart F of 2 CFR part 200. [70 FR 5351, Feb. 2, 2005, as amended at 79 FR 76002, Dec. 19, 2014; 88 FR 7561, Feb. 6, 2023] § 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. §§ 1709.23-1709.99 [Reserved] § 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 § 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. § 1709.102 Policy. (a) All high energy cost grants will be awarded competitively subject to the limited exceptions in 2 CFR 415.1(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. [70 FR 5351, Feb. 2, 2005, as amended at 79 FR 76002, Dec. 19, 2014] §§ 1709.103-1709.105 [Reserved] § 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 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. § 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 Census block according to the most recent decennial Census of the United States (decennial Census). (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. [70 FR 5351, Feb. 2, 2005, as amended at 80 FR 9860, Feb. 24, 2015] § 1709.108 Supporting data for determining community eligibility. The application shall include the following: (a) Documentation of energy costs. (b) Served areas. (c) Engineering estimates. (1) Where historical community energy cost data are unavailable (unserved areas), incomplete or otherwise inadequate; (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. § 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 . § 1709.110 Use of grant funds. (a) Project development costs. (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. (c) Acquisitions and purchase. (d) Grantee cost contributions. § 1709.111 Limitations on use of grant funds. (a) Planning and administrative costs. (b) Unproven technology. § 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 § 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. § 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. § 1709.114 Application process. The RUS will request applications for high energy cost grants on a competitive basis by posting a FOA on www.Grant.gov. [83 FR 45032, Sept. 5, 2018] § 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 that may be of assistance to prospective applicants. § 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. § 1709.117 Application requirements. (a) Required forms. (b) Narrative proposal. (1) Executive summary. (2) Applicant eligibility. (3) Community eligibility. (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. (5) Project description. (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. (7) Budget. (8) Project goals and objectives. (9) Performance measures. (10) Proposal evaluation and selection criteria. (11) Rural development initiatives. (12) Environmental review requirements. (13) Regulatory and other required project approvals. [70 FR 5351, Feb. 2, 2005, as amended at 81 FR 11026, Mar. 2, 2016] § 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. § 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 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. § 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. § 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 FOA 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 FOA. Another FOA regarding the reopening of an application period will be announced on www.Grants.gov. [70 FR 5351, Feb. 2, 2005, as amended at 83 FR 45033, Sept. 5, 2018] § 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. § 1709.123 Evaluation criteria and weights. (a) Establishing evaluation criteria and weights. (b) Project design and technical merit. (1) Comprehensiveness and feasibility. (2) Demonstrated experience. (3) Community needs. (4) Project evaluation and performance measures. (5) Coordination with rural development initiatives. (c) Priority considerations. (1) Community economic hardship. (2) Rurality. (3) Unserved energy needs. (4) Imminent hazard. (5) Cost sharing. [70 FR 5351, Feb. 2, 2005, as amended at 80 FR 9860, Feb. 24, 2015] § 1709.124 Grant award procedures. (a) Notification of applicants. (b) Letter of conditions. (c) Applicant's intent to meet conditions. (d) Grant agreement. [70 FR 5351, Feb. 2, 2005, as amended at 81 FR 11026, Mar. 2, 2016] §§ 1709.125-1709.200 [Reserved] Subpart C—Bulk Fuel Revolving Fund Grant Program § 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. § 1709.202 [Reserved] § 1709.203 Definitions. As used in this subpart, the following definitions apply: Eligible area Fuel means State entity Surface transportation §§ 1709.204-1709.206 [Reserved] § 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. § 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. § 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. § 1709.210 Application process. (a) Applications. (b) Required forms. (c) Narrative proposal and required elements. (1) Executive summary. (2) Applicant eligibility. (3) Assessment of needs and potential beneficiaries. (4) Project description. (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. (6) Budget. (7) Performance measures and project evaluation. [70 FR 5351, Feb. 2, 2005, as amended at 80 FR 9860, Feb. 24, 2015] § 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. § 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. § 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. (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. § 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. § 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. § 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. (b) Assessment of needs. (c) Program evaluation and performance measures. (d) Demonstrated experience. (e) Rurality. (f) Cost sharing. (g) Additional priority considerations. § 1709.217 Grant award. (a) Notification of applicants. (b) Letter of conditions. (c) Applicant's intent to meet conditions. (d) Grant agreement. §§ 1709.218-1709.300 [Reserved] Subparts D-F [Reserved] Subpart G—Recovery of Financial Assistance Used for Unauthorized Purposes § 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 2 CFR part 200, as adopted by USDA through 2 CFR part 400. [70 FR 5351, Feb. 2, 2005, as amended at 79 FR 76002, Dec. 19, 2014] §§ 1709.602-1709.999 [Reserved]