Denali Commission High Energy Cost Grants

The Denali Commission High Energy Cost Grants program is a partnership between USDA Rural Development and the Denali Commission aimed at addressing the disproportionately high energy costs in remote Alaskan communities. This initiative stems from the broader mission of USDA Rural Development to improve the quality of life in rural America, particularly through enhanced infrastructure and public services. The program operates under the authority of the Rural Electrification Act of 1936, as amended, and is guided by regulations outlined in 7 CFR 1709. The Denali Commission is the sole eligible applicant for this funding stream. Although only the Commission can apply directly, it uses awarded funds to support other eligible entities through sub-awards. These sub-awards are available to a range of organizations and government bodies including for-profit and nonprofit organizations, state and local governments and their affiliates, federally recognized Tribes, and Tribal governments. This unique structure ensures that entities embedded in high-cost energy areas can access support while maintaining a streamlined application process through the Denali Commission. Eligible areas for this program are limited to regions within Alaska experiencing energy costs significantly above the national average. As of the 2025 Notice of Funding Opportunity, benchmarks used to determine eligibility include specific cost thresholds across electricity, natural gas, fuel oil, LPG/propane, and overall household energy costs. Communities must meet or exceed 275% of the national average in household energy costs to qualify. Funds distributed through this program are exclusively grants and are designated for activities related to energy generation, transmission, and distribution infrastructure. Projects supported by these funds must be legally and technically viable, meaning recipients must have the authority and capacity to construct, operate, and maintain proposed facilities. Emphasis is placed on partnerships and collaboration with other federal, state, local, private, and nonprofit organizations to maximize impact and resource efficiency. The application process is managed exclusively by the Denali Commission, which serves as the conduit for funding requests. Prospective sub-awardees should contact the Commission directly through their official website, provided via a dedicated USDA URL shortener. USDA Rural Development provides oversight and programmatic guidance but does not accept or review applications directly. All applicants and sub-recipients must ensure compliance with federal laws and program regulations, including the provisions of the updated Rural Electrification Act. The program remains active as of April 2025 and applications can currently be submitted. There is no publicly stated close date, and the program appears to be recurring. Interested applicants are encouraged to verify details and obtain the latest forms and instructions through the Denali Commission’s website or contact the USDA Rural Utilities Service Electric Programs staff at (202) 720-9545. Given its scope and structure, this program plays a pivotal role in enhancing the economic viability and livability of Alaska’s most remote and energy-challenged communities.