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.

0 Contributed land will be valued at its fair rental value for the

period of the demonstration.

0 Contributed land, equipment and facilities will be counted as costsharing 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.

Value for contributed equipment and facilities will be assigned only to the extent that the facility or equipment is projectrelated.

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

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

0 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:

1. During the operational phase of the project: The revenues

generated (if any) will be shared in proportion to the overall
cost-share for the project. Such revenues will not be considered
as offsets to the operating cost. It is recognized that for
retrofit projects it may be difficult to distinguish between
revenues from the add-on equipment and from the existing
equipment. Therefore, the following convention will be used
for retrofit to existing equipment: Where the existing
equipment is contributed as a portion of the proposer's cost-
share, the entire revenue is attributed to the project.

2. Operations of the demonstration Project beyond the period of performance (if applicable): The net revenue from the operation (after operating costs) will be shared in proportion to the

overall cost-share for the project.

3. Future commercialization:

The Government will share in the

commercial sale, lease, manufacture, or use of the technology demonstrated under the Clean Coal Technology Program from net revenues of such sales in proportion to the overall cost-share for the project.

The decision of whether to dispose of the facility at the end of the cost-shared project, or whether to continue operating the

facility at the proposer's expense, is solely the responsibility of the proposer and must be included as part of the proposal (see SECTION IV.2.2(d)). Proceeds from the sale of project assets will

be shared in proportion with the overall cost-share for the duration of the project.

5. COST OVERRUNS

The Government at its own discretion may not fund any cost overruns. However, to the extent that funds are available and federal assistance for overruns is provided, the share of costs incurred during the project that are in excess of those estimated at the date of award of the original financial assistance will not be provided in excess of the proportion of costs borne by the Government in the initial financial assistance agreement, and then only up to 25 percent of the original Government contributions as specified in the financial assistance agreement.

6. FINANCIAL RECORDS

Participants in cooperative agreements are required to maintain financial records adequate to reflect the nature and extent of their costs and to ensure that the required cost participation is achieved.