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This section specifies the financial policies and guidelines upon which

Government assistance under this Program Opportunity Notice (PON) will be

determined.

1. AMOUNT OF COST-SHARING REQUIRED

DOE shall not finance more than 50 percent of the total costs of

the project as estimated by DOE as of the date of award of financial

assistance,

In addition, cost-sharing by the offeror of at least

50 percent is required in each of the following phases: (1) Design

and Permitting; (2) Construction and Startup ("Shakedown"); and

(3) Operation, Data Collection, Reporting, and Disposition.

Costs will be shared between DOE and the participant on an "as

expended," dollar-for-dollar, basis (reconciled quarterly).

2. PROJECT COSTS NOT ALLOWED FOR COST-SHARING PURPOSES

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DOE shall not accept valuation for property sold, transferred,

exchanged, or otherwise manipulated to acquire a new basis for

depreciation purposes or to establish a rental value in circum

stances which would amount to a transaction for the mere purpose

of responding to this PON.

Revenues or royalties from operation or prospective operation of

the project, including the period beyond that specified in the

financial assistance agreement, or proceeds from the prospective

sale of the assets of the project, or revenues or royalties from

replication of the technology in future projects or plants, are

not to be considered cost-sharing.

o Property which has been fully depreciated will not receive any

cost-sharing value except to the extent that it has been in con

tinuous use by the proposer during the entire calendar year 1984.

( See SECTION VI.3, below.)

o Existing facilities, equipment, and supplies, or previously

expended research or development funds are not cost-sharing for

the purposes of this PON, except as amortized, depreciated, or

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expensed in normal business practice (see SECTION VI.3, below).

Contributions in the form of foregone revenues or replacement

power costs will not be considered as cost-sharing.

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Patents, proprietary data, or prior work will not be valued in

determining the proposer's cost participation in the cooperative

agreement project.

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O Allowable costs which are absorbed by the proposer as its share of

cost participation may not be charged directly or indirectly or

may not have been charged directly or indirectly in the past to

the Federal Government under other contracts, agreements, or

grants. Additionally, other appropriated federal funds are not

cost-sharing for the purposes of this PON.

Foregone fee or profit will not be considered in establishing the

degree of cost participation. Fee or profit will not be paid to the participant(s) under the cooperative agreement.

3.

ALLOWABLE PROJECT COSTS FOR COST-SHARING PURPOSES

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Cost participation by the proposer may be accomplished by a con

tribution of either direct or indirect costs provided such costs

are otherwise allowable in accordance with the cost
principles applicable to the award.

o For property contributed to the project and which has been fully

depreciated but was in continuous use during the entire calendar

year 1984, a fair use value for the life of the project will be

assigned by DOE. The fair use value will be the annual average

depreciation used by the proposer as permitted under statute or

IRS regulations under which it was depreciated.

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o The value that will be allowed for contributions of currently

depreciating property and which are of relevance to the project proposed is the depreciation schedule which has been used and is allowed under statute or IRS regulations for the property. This depreciation will be limited in its cost-share value to the depreciation claimed during the life of the demonstration project.

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contributed land will be valued at its fair rental value for the

period of the demonstration.

o Contributed land, equipment and facilities will be counted as cost

sharing only for the periods during which they are actually brought into use for this project. For example, that portion of a facility used for housing the design team may be credited as a cost-share during Phase I, but contributed equipment to be incorporated in

the construction may be credited as a cost-share only during those

portions of Phases II and III when actually utilized. Property that is owned by one of the participants and is made available to the project for the project period or any part thereof will be valued in accordance with the principles described above.

O Value for contributed equipment and facilities will be assigned

only to the extent that the facility or equipment is project

related.

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The cost of disposal of the facility and equipment is an allowable

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cost under the final phase of the cooperative agreement.

In the event that doe and the offeror execute a cooperative agree

ment for a project selected for award under this PON, DOE will

recognize as an in-kind contribution the costs incurred to acquire

and deliver the environmental information generated by the proposer

during the time period between selection and the award of the

cooperative agreement. Only the information actually delivered

and accepted by DOE in an effort to satisfy the requirements of

the post-selection site-specific NEPA process (see Appendix J) will

be recognized for cost-sharing purposes.

Generation of environmental

information not delivered to, and/or not accepted by, DOE will be

considered as excess to the requirements for a site-specific NEPA

document and will not be recognized as a contribution under this

provision. Notwithstanding the above, for purposes of the prepara

tion of the cost proposal, the proposer must assume that all post

selection site specific NEPA process costs occur after award and

are shared in proportion to the overall cost-share ratio for Phase I.

4.

REVENUES AND RECOVERY OF GOVERNMENT'S INVESTMENT

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The Government intends to recover an amount up to the Government's

contribution to the project. This recovery will only be required

if revenues are received from the project, including subsequent

commercialization.

The recovery will be derived from the sum of

the following three sources:

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