# § 918c. Rural and remote communities electrification grants
**(a)** **Definitions** In this section:
**(1)** The term “eligible grantee” means a local government or municipality, peoples’ utility district, irrigation district, and cooperative, nonprofit, or limited-dividend association in a rural area.
**(2)** The term “incremental hydropower” means additional generation achieved from increased efficiency after January 1, 2005, at a hydroelectric dam that was placed in service before January 1, 2005.
**(3)** The term “renewable energy” means electricity generated from—
**(A)** a renewable energy source; or
**(B)** hydrogen, other than hydrogen produced from a fossil fuel, that is produced from a renewable energy source.
**(4)** The term “renewable energy source” means—
**(A)** wind;
**(B)** ocean waves;
**(C)** biomass;
**(D)** solar;
**(E)** landfill gas;
**(F)** incremental hydropower;
**(G)** livestock methane; or
**(H)** geothermal energy.
**(5)** The term “rural area” means a city, town, or unincorporated area that has a population of not more than 10,000 inhabitants.
**(b)** **Grants** The Secretary, in consultation with the Secretary of Agriculture and the Secretary of the Interior, may provide grants under this section to eligible grantees for the purpose of—
**(1)** increasing energy efficiency, siting or upgrading transmission and distribution lines serving rural areas; or
**(2)** providing or modernizing electric generation facilities that serve rural areas.
**(c)** **Grant administration**
**(1)** The Secretary shall make grants under this section based on a determination of cost-effectiveness and the most effective use of the funds to achieve the purposes described in subsection (b).
**(2)** For each fiscal year, the Secretary shall allocate grant funds under this section equally between the purposes described in paragraphs (1) and (2) of subsection (b).
**(3)** In making grants for the purposes described in subsection (b)(2), the Secretary shall give preference to renewable energy facilities.
**(d)** **Authorization of appropriations** There is authorized to be appropriated to the Secretary to carry out this section $20,000,000 for each of fiscal years 2006 through 2012.
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**Source Credit**: (Pub. L. 95–617, title VI, § 609, as added Pub. L. 109–58, title II, § 209, Aug. 8, 2005, 119 Stat. 657.)
## Editorial Notes
### Codification
Section was enacted as part of the Public Utility Regulatory Policies Act of 1978, and not as part of the Rural Electrification Act of 1936 which comprises this chapter.
## Statutory Notes and Related Subsidiaries
### Definitions
Secretary means the Secretary of Energy, see , Conservation.