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State Bulk Fuel Revolving Fund Grants

Program Descriptions

Program Number



State Bulk Fuel Revolving Fund Grants


Federal Agency




Rural Electrification Act of 1936, as amended, Title I, Section 19, Public Law 106-472, 114 Stat. 2058, 7 U.S.C. 918a.






To provide grants to State entities for revolving funds to promote more costeffective fuel purchases for communities where fuel cannot be shipped by surface transportation.


Types of Assistance

Project Grants.


Uses and Use Restrictions

Funds must be used to establish and support a revolving fund to provide a more cost-effective means of purchasing fuel where fuel cannot be shipped by means of surface transportation. Not more than 4 percent of the funds made available under the grant may be used for planning and administrative expenses.


Eligibility Requirements

Applicant Eligibility

Applicants are limited to State entities and to entities of any Territory. possession or other area authorized to receive the services and programs of the Rural Utilities Service or the Rural Electrification Act of 1936, as amended.

Beneficiary Eligibility

Entities must be in existence as of November 9, 2000.


Assistance must be used to improve the cost-effectiveness of fuel purchasing for communities that are dependent on fuel deliveries by water or air.


Application and Award Process

Preapplication Coordination


Application Procedure

None. This program is excluded from coverage under E.O. 12372.

Award Procedure

Grant applications are accepted in response to a Notice of Funding Availability published in the Federal Register. Requirements for applications are described in the Federal Register notice and may be requested from the Agency. Eligible entities should provide expressions of interest in applying for grants to the Assistant Administrator, Electric Programs.


Grants are awarded competitively.

Range of Approval/Disapproval Time

Deadlines will be announced in Notice of Funding Availability published in the Federal Register. Applications will be accepted during the announced application window and awarded at the close of the window.


Grant approvals will generally be made within 60 days of the application closing date.



Assistance Considerations

Formula and Matching Requirements

Not applicable.

Length and Time Phasing of Assistance



Post Assistance Requirements


Grant agreements will run for a period of three years. Extensions may be granted. Funds will be disbursed on request of the Grantee.


Grantee will be required to provide periodic financial and performance reports. Grantee will be required to report in accordance with the provisions of OMB Circular A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations."


Records must be kept as required under USDA and State regulations.


Financial Information

Account Identification



(Grants) FY 07 $500,000; FY 08 $0; and FY 09 est not reported.

Range and Average of Financial Assistance

Grants to States have ranged from $350,000 to $5,000,000.


Program Accomplishments

Grant allowed expansion of existing State revolving fund program to fully fund requests for assistance to secure adequate winter fuel supplies. Grantee reports that 60 remote communities benefitted from lower fuel costs through bulk purchase discounts and lower finance costs.


Regulations, Guidelines and Literature

7 CFR Part 1709.


Information Contacts

Regional or Local Office


Headquarters Office

Assistant Administrator, Electric Programs Rural Development Utilities Programs Department of Agriculture, Washington, DC 20250-1560. Telephone: (202) 720-9540. Use the same number for FTS.

Web Site Address


Related Programs

10.850, Rural Electrification Loans And Loan Guarantees
10.854, Rural Economic Development Loans And Grants


Examples of Funded Projects

Expansion of state revolving loan fund for fuel purchases for isolated small rural communities; creation of State emergency loan fund to acquire fuel on behalf of financially distressed communities.


Criteria for Selecting Proposals

Proposals are selected competitively based on total scores received on evaluation criteria in grant announcement.


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