7 CFR § 1709.111 - Limitations on use of grant funds.
---
identifier: "/us/cfr/t7/s1709.111"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "7 CFR § 1709.111 - Limitations on use of grant funds."
title_number: 7
title_name: "Agriculture"
section_number: "1709.111"
section_name: "Limitations on use of grant funds."
chapter_name: "RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE"
part_number: "1709"
part_name: "ASSISTANCE TO HIGH ENERGY COST COMMUNITIES"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "5 U.S.C. 301, 7 U.S.C. 901"
regulatory_source: "70 FR 5351, Feb. 2, 2005, unless otherwise noted."
cfr_part: "1709"
---
# 1709.111 Limitations on use of grant funds.
(a) *Planning and administrative costs.* Not more than 4 percent of each grant award may be used for the planning and administrative expenses of the applicant that are unrelated to the grant project.
(b) *Unproven technology.* Only projects that utilize technology with a proven operating history, and for which there is an established industry for the design, installation, and service (including spare parts) of the equipment, are eligible for funding. Energy projects utilizing experimental, developmental, or prototype technologies or technology demonstrations are not eligible for grant funds. The determination by RUS that a project relies on unproven technology shall be final.