US Government: USDA - High Energy Cost Grant Program

NOTE: The most recent solicitation for this program closed September 8, 2010. Check the program website for information on future solicitations.

The U.S. Department of Agriculture (USDA) offers an ongoing grant program for the improvement of energy generation, transmission, and distribution facilities in rural communities. This program began in 2000. Eligibility is limited to projects in communities that have energy costs at least 275% above the national average. Individuals, non-profits, commercial entities, state and local governments, and tribal governments are eligible for this grant. Individuals must work on a project that will benefit the community in order to qualify. Grants ranging from $75,000 to $5 million are available for a variety of activities, including:

• Electric generation, transmission, and distribution facilities;
• Natural gas or petroleum storage or distribution facilities;
• Renewable energy facilities used for on-grid or off-grid electric power generation, water or space heating, or process heating and power;
• Backup up or emergency power generation or energy storage equipment; and
• Weatherization of residential and community property, or other energy efficiency or conservation programs.

This grant program is not limited to renewable energy or energy conservation and efficiency measures, but these measures are eligible for this grant program.