The offer is apparently still making its way to the Youtube site, however the details of the offer are public and it is available now.
Below I've provided the content of an email sent to me by Geordie Hyland of Youtube regarding how to take up the offer and here is a link to a blog post by Mike Kujawski in his blog Public Sector Marketing 2.0 with details of what departments will get with a branded channel.
Note that departments do need to assess whether taking this up meets their needs - and whether there's any potential lock-in effect that may not be in their strategic interests in the future.
Youtube does have a dominant position in the online video distribution market at present - however it may not suit all departments' needs.
Please contact me by email directly for a Youtube contact if needed.
Thanks for your interest in starting a YouTube channel for your government, government department, or government agency. If you like, you can start a YouTube channel right away by creating an account and posting videos. One time at the end of every month, YouTube will transfer any new government channels to "branded" - thus allowing you to upload a branded banner to the top of your channel, and giving you the ability to upload longer videos to the site.
We do not have the capacity to do this more than one time per month, so please be patient if you don't hear back right away - and feel free to start posting videos to your account.
To enter your application for a branded channel, please send an email to firstname.lastname@example.org with the following 5 pieces of information:
* The name of your government, government department, or agency.
* Your .gov website URL.
* The account name you've registered on YouTube (i.e., your YouTube username).
* The email address you are using to manage the account.
* Any other information you want to tell us about your plans to launch the channel, and what types of content you plan to post.
Please also be aware the YouTube will not negotiate any individual content licensing agreements with state or local governments - your contract with YouTube is our site-wide terms and conditions, which you agree to upon starting an account on YouTube. To see that policy, please go to: http://www.youtube.com/t/terms
Thanks, and good luck!
-The YouTube Team