The Rural Utilities Service (RUS), an agency of the United States Department of Agriculture (USDA), announces the availability of up to $7 million in Fiscal Year 2012 for competitive grants to assist communities with extremely high energy costs.

This grant program is authorized under section 19

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of the Rural Electrification Act of 1936 (RE Act) (7 U.S.C.

918a) and program regulations at 7 CFR part 170 9. The grant funds may be used to acquire, construct, extend, upgrade, or otherwise improve energy generation, transmission, or distribution facilities serving communities in which the average residential expenditure for home energy exceeds 275 percent of the national average.

Eligible applicants include persons, States, political subdivisions of States, and other entities organized under State law.

Federally-recognized Indian Tribes and Tribal entities are eligible applicants.

This notice describes the eligibility and application requirements, the criteria that will be used by RUS to award funding, and information on how to obtain application materials