HomeMy WebLinkAboutReFundRound3-RFA+formsRFA AEA10-015 Page 1 of 26 10/7/09
IMPORTANT NOTICE
Requests for Grant Applications (RFA) AEA10-015
for
Renewable Energy Fund Grant Recommendation Program Round III
RFA ISSUE DATE: October 7, 2009
Project Notices website
http://www.akenergyauthority.org/RE_Fund-III.html
Interested Applicants that want to be notified of updates or changes to the Renewable Energy
Grant request for Applications MUST fill out the following information and reply via email or fax;
otherwise we will be unable to notify the Applicant of possible addenda to this RFA.
Please provide the following information by FAX or E-mail to the contact below:
Company Name
Contact Name
Company Address
Telephone Number
Fax Number
E-Mail Address
Public Records Notice to Applicants:
Alaska Energy Authority is subject to the Public Records Act, AS 40.25 and materials
submitted to the Authority may be subject to disclosure requirements under the act if no
statutory exemptions apply.
In accordance with 3 AAC 107,630 (b) Applicants may request trade secrets or
proprietary company data be kept confidential subject to review and approval by the
Authority.
All applications received will be posted on the Alaska Energy Authority web site after
final recommendations are made to the Legislature.
Return to:
Grant Administrator: Butch White
Alaska Energy Authority
813 West Northern Lights Blvd.
Anchorage, AK 99503
FAX: (907) 771-3942
Phone: (907) 771-3048
E-mail: re_fund@aidea.org
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Table of Contents
1. Introduction and Instructions ................................................................................ 4
1.1 Purpose ...................................................................................................................... 4
1.2 Introduction ................................................................................................................ 4
1.3 Government Roles and Responsibilities .................................................................. 4
1.4 Eligible Applicants ..................................................................................................... 5
1.5 Eligible Projects ......................................................................................................... 5
1.6 Filing an Application .................................................................................................. 6
1.7 Application Deadline ................................................................................................. 7
1.8 RFA Project Web Page .............................................................................................. 7
1.9 Questions about the RFA .......................................................................................... 7
1.10 Modifications of the RFA ....................................................................................... 8
1.11 RFA Schedule ......................................................................................................... 8
1.12 Grant Regulations .................................................................................................. 8
1.13 Grant Funding Program Targets ........................................................................... 8
1.14 Grant Funding Project Limits ................................................................................ 9
1.15 Grantee Reimbursement Conditions .................................................................... 9
1.16 Pre-Award Obligations and Reimbursement .......................................................10
1.17 Applicant Match .....................................................................................................10
1.18 Application Preparation Costs .............................................................................11
1.19 Application Content Requirements ......................................................................11
1.20 Authorized Signature ............................................................................................11
1.21 Applicant's Certification .......................................................................................11
1.22 Correction, Modification or Withdrawal of Applications .....................................11
1.23 Review of Applications - General .........................................................................12
1.24 Public Notice and Recommendations to the Legislature ...................................12
1.25 Notice of Intent to Award a Grant .........................................................................13
1.26 Grant Agreement ...................................................................................................13
1.27 Failure to Proceed .................................................................................................13
2. Project Requirements ........................................................................................... 13
2.1 Project Management Requirements ........................................................................13
2.2 Project Phase Descriptions ......................................................................................14
2.3 Phase I – Reconnaissance Requirements ...............................................................15
2.4 Phase II - Feasibility Analysis, Conceptual Design Requirements ........................16
2.5 Phase III - Final Design and Permitting Requirements ...........................................17
2.6 Phase IV - Project Requirements – Construction ...................................................18
3. Grant Requirements ............................................................................................. 19
3.1. Declaration of Public Benefit ...................................................................................19
3.2. Grantee Project Manager ..........................................................................................19
3.3. Approval to Proceed With Next Phase ....................................................................19
3.4. Contracts for Engineering Services ........................................................................19
3.5. Site Control ...............................................................................................................19
3.6. Permits ......................................................................................................................19
3.7. Exclusion of Existing Environmental Hazards .......................................................20
3.8. Environmental Standards .........................................................................................20
3.9. Current Prevailing Rates of Wage and Employment Preference ...........................20
3.10. Construction Plans and Specifications Review ..................................................20
3.12. Post Construction Certification ............................................................................21
3.13. Ownership of Facilities .........................................................................................21
3.14. Operation and Maintenance of Facilities .............................................................21
3.15. Performance/Operation and Maintenance (O&M) Reporting ..............................21
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3.16. Tariffs & Rates for Use of Grant-Funded Assets .................................................21
3.17. Grant-Funded Assets Not Included in PCE .........................................................22
4. Application Evaluation Process .......................................................................... 22
4.1 Stage 1 Review: Completeness and Eligibility .......................................................22
4.2 Stage 2 Review: Project Feasibility and Benefits ...................................................23
4.3 Stage 3 Review: Evaluation of Individual Applications ..........................................25
4.4. Stage 4 Review: Final Ranking Recommendations ................................................25
5. Appendices ........................................................................................................ 26
Grant Application Form
Cost Worksheet
Budget Form Instructions
Grant Budget Form
Sample Grant Form
RFA AEA10-015 Page 4 of 26 10/7/09
1. Introduction and Instructions
1.1 Purpose
Pursuant to Chapter 31 Session Laws of Alaska 2008 (referred to below as the program
legislation), which establishes the renewable energy grant recommendation program in Alaska
Statute AS 42.45.045, the Alaska Energy Authority (―AEA‖ or ―Authority‖) is soliciting competitive
applications from qualified Applicants for the purpose of recommending grants for renewable
energy projects to be funded by the Alaska State Legislature. Applications will be accepted and
evaluated in accordance with AS 42.45.045, 3 AAC107.600 - .695 and this Request for
Applications (RFA).
1.2 Introduction
This RFA sets out the purpose, instructions, requirements, evaluative criteria, and other
information on submitting an application to the Authority for recommendation for grant funding.
This RFA is organized as follows:
Section 1: Introduction and Instructions - describes program and procedural
requirements for preparing and submitting an application.
Section 2: Project Requirements - describes project information that is required to be
discussed in each application.
Section 3: Grant Requirements - describes specific construction grant terms and
conditions related to this program. (Note: a copy of the standard grant document including
all standard terms and conditions are included as an Appendix to this RFA.)
Section 4: Application Evaluation Process and Criteria - describes the criteria that will
be used to evaluate and rank recommended applications.
Section 5: Appendices - provides additional reference material to assist in application
preparation, application forms, grant documents, and applicable law.
Accompanying this RFA are Application Forms and Instructions to use in preparing your
application for a Renewable Energy Fund Grant.
1.3 Government Roles and Responsibilities
The Alaska Legislature established the Renewable Energy Grant Fund and the Renewable
Energy Grant Recommendation Program in Chapter 31 SLA 2008, which the Legislature
enacted in 2008. This bill included a new statute, AS 42.45.045, outlining the program and
giving the Alaska Energy Authority responsibility for administering the program.
The Legislature is responsible for final approval and funding of all grant projects.
The Authority is a public corporation of the State of Alaska with the purpose to promote,
develop, and advance the general prosperity and economic welfare of the people of the State by
providing a means of financing and operating power projects and by carrying out the powers
and duties assigned to it. AS 42.45.045 gives AEA the authority to solicit applications for
projects, develop and implement regulations, and recommend grants for renewable energy
projects to the Legislature.
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The Authority has also adopted regulations under 3 AAC107.600 - .695 for the purpose of
implementing this program. A copy of these regulations can be found on the AEA Renewable
Energy Fund Round III web page at http://www.akenergyauthority.org/RE_Fund-III.html
The Authority consults with an Advisory Committee that was established to assist in the final
ranking of applications.
The AEA Grant Administrator is responsible for accepting applications, coordinating the
evaluation of all applications, and developing the list of grant projects to be recommended to the
Legislature.
An AEA Project Manager will be assigned to assist each grantee whose application is selected
for grant funding. Tasks and level of the Authority project management will vary according to
the project management plan developed under the grant agreement. At a minimum, the AEA
Project Manager will clarify grant requirements, review reports and billings, and track progress
of the grant project.
The Executive Director of AEA or his designee will approve the final grant and carry out all other
duties as defined in statues, regulations, and this RFA.
1.4 Eligible Applicants
To be eligible for a grant recommendation the Applicant must demonstrate formal approval and
endorsement of its project by its governing authority (such as board of directors or executive
management if it does not have a governing board) and be one of the following types of entities:
1. An electric utility holding a certificate of public convenience and necessity under AS
42.05;
2. An independent power producer (IPP) as defined under 3 AAC 107.695 (a) (1);
“independent power producer" means a corporation, person, agency, authority, or
other legal entity or instrumentality, that is not an electric utility and that owns or
operates a facility for the generation or production of energy entirely for use by the
residents of one or more municipalities or unincorporated communities recognized by
the Department of Commerce, Community, and Economic Development for
community revenue sharing under AS 29.60.850 - 29.60.879 and 3 AAC 180.”
3. A local government; or
4. A governmental entity, (which includes tribal councils and housing authorities).
In accordance with 3 AAC 107.610 an Applicant must also be able to demonstrate that they will
take ownership of the project; own, lease, or otherwise control the site upon which the project is
located; and upon completion of the project operate and maintain it for its economic life for the
benefit of the public.
Applications whose Applicants do not meet these requirements will be rejected without further
evaluation.
1.5 Eligible Projects
The Authority may recommend grants for feasibility studies, reconnaissance studies, energy
resource assessment, and/or work related to the design and construction of an eligible project.
Applications for projects that are not within the scope of eligible projects will be rejected without
further evaluation.
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To be eligible for a grant recommendation the Applicant’s project must:
1.5.1. Be a new project not in operation on or before August 20, 2008 or an addition to an
existing project made after August 20, 2008.
and
1.5.2 Be a project that generates energy from or involves the direct use of:
wind, solar, geothermal, wasteheat recovery from existing power systems,
hydrothermal, wave, tidal, river in-stream, hydropower; or
low-emission nontoxic biomass based on solid or liquid organic fuels from wood,
forest and field residues, or animal or fish products; or
dedicated energy crops available on a renewable basis; or
landfill gas and digester gas.
―Direct use of energy‖ means that it either uses renewable energy to generate energy or
to make fuel used to generate energy. (3AAC 107.615)
1.5.4 Or be a facility that generates electricity from fuel cells that use hydrogen from
renewable energy resources or natural gas.
1.5.5 Or be a natural gas project (other than landfill or digester gas) that benefits a community
that:
has a population of 10,000 or less; and
does not have economically viable renewable energy resources it can
develop.
1.5.6 Or be a transmission or distribution infrastructure located in Alaska that links an eligible
renewable energy project or eligible natural gas project to other transmission or
distribution infrastructures. (An Applicant requesting a grant for transmission or
distribution infrastructure is not required to be involved in the financing or construction of
the renewable energy project or natural gas project it may be connecting.)
1.6 Filing an Application
Applicants must submit two (2) hard copies of their complete application, including appendices
that can be duplicated, and one CD that includes an electronic version of the complete
application and attachments.
To assist the Authority in processing applications, Applicants should copy their completed
application to a CD in MS Word (.doc format) or save it as a word-searchable PDF document.
Attachments to the application may be scanned as images in PDF or other print ready electronic
format and copied to the CD.
The application, attached documents, and CD should be in a sealed envelope clearly labeled:
From: Applicants Return Address
To: Alaska Energy Authority
AEA-10-015 – RE Fund Grant Application Round 3
813 West Northern Lights Blvd
Anchorage, AK 99503
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1.7 Application Deadline
All applications must be received by the Authority no later than 5:00 pm on Tuesday, November
10, 2009.
The Applicant is solely responsible for complete and timely submission of an application. The
Authority accepts no responsibility for submission of applications or for applications that are
received after the application deadline, whether they were misdirected, delayed, erroneously
addressed, or for any other reason.
Failure to meet the deadline will result in the application being rejected.
1.8 RFA Project Web Page
Public information regarding project applications may be viewed on the Authority’s Renewable
Energy Fund Round III web page at http://www.akenergyauthority.org/RE_Fund-III.html
Throughout the application process, the following information and documents may be found on
the web page:
The Request for Applications (RFA)
Application and Grant forms
FAQ’s - A summary of relevant questions received regarding the RFA and responses.
Clarifications and addenda to the RFA
A list of all applications received.
Status of applications in the review process.
Links to a PDF version of all applications received (these won’t be available until after
completion of the review and ranking process).
1.9 Questions about the RFA
Applicants should carefully review all documents and visit the Round III web page prior to
contacting the Grant Administrator with questions. Any questions regarding the RFA or grant
documents should be directed to:
Grant Administrator: Butch White
Alaska Energy Authority
813 West Northern Lights Blvd
Anchorage, AK 99503
Phone: (907) 771-3048
Fax: (907) 771-3942
E-mail: re_fund@aidea.org
Questions that require clarification or interpretation of this RFA that the Applicant cannot answer
by careful review of the RFA should be submitted in writing (letter or E-mail) no later than
October 23, 2009.
The Grant Administrator may contact the Applicant directly by phone or E-mail to respond to
non-material questions. The Grant Administrator will post the answer to material questions on
the Project web page.
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1.10 Modifications of the RFA
Applicants may submit written requests for modifications to this RFA to the Grant Administrator
no later than October 15, 2009. Please be advised that the Authority cannot modify
requirements of Statutes AS 42.45.045 or Regulations 3 AAC107.600 - .695 as it relates to the
solicitation.
Acceptance or denial of the request is solely at the discretion of the Authority. If the Grant
Administrator does not issue a written modification within 10 days from submittal of the request,
the request shall be considered denied.
Modifications to this request for applications may be issued at any time prior to the deadline for
receipt of applications at the Authority’s option. If modifications are issued within 10 days of the
deadline for applications, the application deadline may be extended to allow time for Applicants
to respond to any changes. All modifications to this RFA will be in writing and posted on the
project web page at http://www.akenergyauthority.org/RE_Fund-III.html and the Authority will
provide E-mail notice to those registered as described on the cover page of this RFA.
1.11 RFA Schedule
Below is a schedule of critical dates as it relates to this request and award of grants. Actual
dates after the application due date is tentative and may vary depending on the number of
applications received, the complexity of applications, and timely completion of review by the
Legislature.
Task Target Dates
Application Due Date 11/10/2009
Complete Evaluation of Applications 12/22/2009
Submit Projects for approval by the Legislature 1/29/2010
Projects approved for funding (contingent upon
appropriation)
7/1/2010
Finalize Award Documents (contingent upon the Authority
receiving all documentation needed for award)
9/1/2010
Actual award dates may vary depending on timing of legislative approval and appropriation, and
any modifications to the grantee’s proposal that may be required prior to grant award.
1.12 Grant Regulations
Grant regulations, 3 AAC107.600 - .695, effective October 16, 2009, have been adopted and
are available for review at www.alaskaenergyauthority.org.
1.13 Grant Funding Program Targets
A grant resulting from this RFA is subject to legislative appropriation. The program legislation
indicated that the Legislature intends to provide $50 million per year from State fiscal year 2009
through 2013 for Renewable Energy Projects under this program. The actual amounts available
for the program and for any particular grant are subject to appropriation. Through FY 2010 the
Legislature has authorized $125 million in grants that are being awarded as a result of the
Authority’s first Request for Applications, Round 1 & 2, issued in September 2008.
The Authority must receive an appropriation and approval from the Legislature prior to award of
any grant.
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AEA has established initial funding allocation targets indicated below as goals in its selection of
projects to recommend. The targets are preliminary and subject to adjustment based on the
available funding and the type, number, and quality of projects submitted.
Project Type
Target Allocation –
% of Grant $’s Recommended
Reconnaissance Study 20%
Feasibility/Conceptual Design or
Energy Resource assessment
Final Design and Permitting 80%
Construction
1.14 Grant Funding Project Limits
In addition to the above program targets, the Authority intends to impose limits on the amount of
funds that will be available for individual grant projects. The purpose of these limits is to be able
to fund more projects statewide, encourage financial participation on the part of the grant
Applicants, and assure the grant awards meet the public purpose requirements of 3 AAC
107.605 (1).
Applicants should take these limits into account when preparing their application as it is
expected that the grantee will be responsible for any project costs beyond the grant funds
available to complete the project.
Project Type/Phase Grant Limits
Biofuel projects where the Applicant
does not intend to generate electricity or
heat for sale to the public. Biofuel is a
solid, liquid or gaseous fuel produced
from biomass.
Limited to reconnaissance and
feasibility phases only
Construction projects on the Railbelt
and SE Alaskan communities that have
installed hydro power.
$2. Million per project
Construction in all other areas of the
State not mentioned above.
$4. Million per project
The limits are subject to adjustment based on the available funding and the type, number, and
quality of projects submitted.
1.15 Grantee Reimbursement Conditions
Reimbursement to a Grantee under this program is on a cost reimbursable basis. In accordance
with the terms of the grant a Grantee is required to submit certified requests for reimbursements
that document commitments and expenditures, and demonstrate meeting milestones identified
in the grant.
A proposed reimbursement schedule tied to completion of milestones must be identified in the
Applicant’s proposal. The Authority will not approve a reimbursement schedule that does not
reflect costs or commitments tied to the accomplishment of milestones identified in the grant.
The final reimbursement schedule is subject to negotiation and will be incorporated into the
grant agreement.
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The Authority may authorize a percentage of grant funds, up to 20% depending on the type of
grant, as an advance reimbursement at the start up of the grant.
The Authority may also withhold up to 20% of the total grant subject to completion of the project
and submission of final reports and other documentation that may be required by the grant.
A Grantee is required to account for and document all expenditures of grant and matching funds
including documentation of expenditures on any advanced reimbursement. All requests for
reimbursement are subject to audit by the Authority.
The Grantee is also required to comply with 2.AAC.45.010, the State Single Audit regulations.
1.16 Pre-Award Obligations and Reimbursement
If an Applicant anticipates award of a grant, they may proceed with work on projects prior to
award provided:
They do so at their own risk as there is no guarantee projects will be funded or funded at
the level requested in their application.
They must have sufficient funds from sources other than this program to meet their
project commitments prior to grant award.
No work performed or obligations incurred prior to the effective date of the grant
appropriation will be considered for reimbursement. For planning purposes this date can
be assumed to be July 1, 2010.
No match will be considered as eligible match that occurs prior to the effective date of
the grant appropriation.
The grantee documents all pre-award expenditures including match expenditures when
requesting reimbursement for pre-award expenses and follows the reimbursement
requests requirements in the grant document.
1.17 Applicant Match
When reviewing applications the Authority will favorably consider an Applicant’s documented
commitment to provide matching resources during the grant period to complete the project.
Applicants are required to identify and document the amount and source of matching funds or
other resources (collectively referred to as ―match‖) they propose to commit to the project during
the period of the grant. Documentation may include a resolution from the Applicant’s board or
assembly that identifies the value of the match and acknowledges the obligation of the Applicant
to provide matching resources as a condition of the grant award.
In order for Applicant contributions to be evaluated as match, the value, type, and source of
match must be documented with the application, it must be expended after the effective date of
the grant appropriation, which for planning purposes can be assumed to be July 1, 2010, and it
must be verifiable as to the value of the proposed contribution.
If matching resources are proposed by the Applicant, the Applicant will be required in the grant
to commit to providing those resources and document the match contribution in their
reimbursement requests.
Failure of an Applicant to document the value, type, or sources of match that will be available
during the project period may result in a lower or no score for this criteria, or cancellation of a
grant or grant award.
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The proposed matching funds for this project cannot have been used to match a previous grant
request.
See the budget form instructions and clarification for matching requirements.
1.18 Application Preparation Costs
The Authority shall not pay for any costs incurred by the Applicant to prepare and submit their
application. No costs incurred by the Applicants in preparation of their application may be
charged as an expense of performing the Grant.
The only reimbursable costs will be those allowed in the grant agreement signed by the
Authority.
1.19 Application Content Requirements
The application must address all the information required as noted in Section 2 for the type of
project proposed. Applicants should download and complete the MS word application and
budget forms provided on the Renewable Energy Fund Round III web site at:
http://www.akenergyauthority.org/RE_Fund-III.html
Below is a list of document names and their purpose:
Document Name Description Date Software
version
GrantApp3.doc Application Form and Instructions 9/25/09 Word 2003
Costworksheet3.doc Application Project Cost Worksheet 9/25/09 Word 2003
GrantBudget3.doc Application Budget Form 9/25/09 Word 2003
GrantBudgetInstructions3.doc Instructions for Application Budget
Form
9/25/09 PDF Acrobat
9.1
Grantform3.pdf Example of Standard Grant Form 9/25/09 PDF Acrobat
9.1
1.20 Authorized Signature
Applications must be signed by an individual authorized to bind the Applicant to its provisions.
The application will be considered valid for a minimum of 180 days. The application may be
extended by the mutual agreement of the Authority and the Applicant.
1.21 Applicant's Certification
By signature on their application, Applicants certify that the individual signing the application has
the authority to commit the Applicant to meet the requirements of any grant award and they will
comply with: 1) all terms and conditions set out in this RFA, 2) the laws of the State of Alaska;
and 3) the applicable portions of: a) the Federal Civil Rights Act of 1964, b) the Equal
Employment Opportunity Act, c) the Americans with Disabilities Act (ADA), and the regulations
issued thereunder by the federal government.
1.22 Correction, Modification or Withdrawal of Applications
An application may be corrected, modified or withdrawn by providing a written request from an
authorized representative of the Applicant to the Grant Administrator before the time and date
set for receipt of the applications.
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After applications are opened, modifications may be allowed prior to completion of the
evaluation process if the Authority determines that it is in the best interest of the program to
allow modifications.
Applicants who may be recommended for grant awards may be requested to clarify, modify, or
correct their application prior to recommendations being sent to the Legislature, or prior to
award of a grant, if the Authority determines that it is in the best interest of the program.
Applicants who fail to respond to requests for clarifications, modifications, or corrections within
the period specified in the request may have their application rejected or removed from the list
of recommended projects.
1.23 Review of Applications - General
Applications will be reviewed in four stages by application evaluation committees, which may
include the Authority staff, consultants, and members of the Advisory Committee established
under the program legislation.
Stage 1 – Completeness and Eligibility Review (3 AAC 107.635)
Stage 2 – Feasibility and Public Benefit Review (3 AAC 107.645)
Stage 3 – Evaluation of Individual Applications (3 AAC 107.655)
Stage 4 – Regional and Final Ranking Recommendations (3 AAC 107.660)
The review and evaluation criteria for each stage are listed in Section 4.
Applications that do not comply with AS 42.45.45, 3 AAC 107.600 - .695 and all of the material
and substantial terms, conditions, and requirements of this RFA may be rejected. If an
application is rejected the Applicant will be notified in writing that its application has been
rejected and the basis for rejection.
The Authority may waive minor requirements of the RFA that do not result in a material change
in the requirements of the RFA and do not give an Applicant an unfair competitive advantage.
At any stage in the review process the Authority may request clarifying information and the
Applicant will have a specified amount of time to respond to the request for information. Failure
to respond in a timely manner or provide adequate information will result in the application being
rejected.
If an application is rejected during the eligibility review or the feasibility and public benefit review
the Applicant may submit a request for reconsideration to the AEA Executive Director. The
request must be in writing and received by the Authority no more than 10 days after the
Applicant has been provided notice of the rejection in accordance with AAC 107.650.
If information is sufficient, the application will be forwarded through to the next stage of review.
1.24 Public Notice and Recommendations to the Legislature
Upon completion of Stage 4, the Authority will forward to the Legislature a summary of all
applications received, their status, the technical score, and the final rank of all applications. The
Authority will also post on its web site the applications, a brief summary of each project, and the
final ranking and disposition of all applications. The total cost of all recommended projects may
be for more or less total dollars than the current funding authorized by the Legislature.
Applicants may be required to provide additional information to the Legislature upon request.
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1.25 Notice of Intent to Award a Grant
Upon approval of funding by the Legislature for FY2011 grants, the Authority will post a
Notification of Intent to Award grants on its website. Grantees whose authorizations are less
than what was requested or whose scope, schedule, or budget may have changed from when
their application was originally submitted, will be required to update their application to assure
the grant is consistent with the funding available.
1.26 Grant Agreement
Applicants whose projects are selected for grant funding will be required to sign a Grant
Agreement prepared by the Authority that contain the terms and conditions in the Grant form
included as an appendix to this document. The Authority may modify its standard form grant
agreement if necessary for this program or for particular projects.
1.27 Failure to Proceed
In accordance with 3 AAC 107.675 (b) if an Applicant fails to execute the grant agreement
within 30 days after receiving it from the authority, the authority may cancel the notice of intent
to award the grant and may offer the grant money to another eligible Applicant, subject to
appropriation and approval by the Legislature.
2. Project Requirements
An application under the RFA should describe the Applicant’s renewable energy project in one
or more phases as described in this section and include sufficient information to allow for the
evaluation and ranking of the application. The depth of information needed with the application
will vary depending on the type and complexity of the project, the number of phases for which
grant funding may be requested, the amount of state funds requested, and the estimated total
project costs.
All Applicants are required to have a project management plan they intend to follow that
includes who is going to manage the project, how it is going to be managed, a schedule with
milestones, and how project risks will be mitigated. The level of detail in the plan will vary
depending on the project phase(s), amount of funds requested, and complexity of the project.
2.1 Project Management Requirements
The Applicant is responsible for implementing and executing a plan for managing the project so
that the project is completed within the scope, schedule, and budget proposed in the
application.
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Project Management
Project Manager The Applicant must designate a project manager(s) responsible for
managing the project for the Grantee. This may be:
2 An employee of the Grantee
3 A consultant
4 Or other partners committed to the project. For example native
corporations, other utilities, IPPs, or government entities.
5 If not known, the Grantee should indicate how they intend to acquire
project managers.
Project Schedule Schedule for the proposed work that will be funded by this grant.
Project Milestones Identifies key tasks and decision points in the project schedule. Project
management milestone charts, cash flow for project funding, and
descriptions of major project decision points are required for developing a
reimbursement schedule
Project Resources Identifies what people, equipment, or services will be used to accomplish
the project. Includes any commitments the Grantee may have or
reference any existing contracts or the selection process that may be
used for major equipment purchases or contracts.
Project
Communications
Identifies how the Grantee will monitor the project and keep the Authority
informed of the status.
Project Risk Identifies potential problems and how they will be addressed.
2.2 Project Phase Descriptions
The application should describe the project proposed for grant funding by phase in order to
demonstrate a likelihood that the project will be successfully completed and will provide
substantial public benefits. Applicants who have completed a project phase will be required to
document successfully completing the phase with a positive public benefit for the project prior to
the Authority releasing funds for a following phase.
Each type of technology may have issues or tasks that are specific to that technology that will
need to be addressed in addition to the issues or tasks identified in each phase.
Project phases or major project tasks that should be addressed in the Applicant’s project
description are as follows:
Phase 1 - Reconnaissance A preliminary feasibility study designed to ascertain
whether a feasibility study is warranted.
Phase II - Feasibility Analysis,
Resource Assessment,
Conceptual Design
Detailed evaluation intended to assess technical,
economic, financial, and operational viability and to
narrow focus of final design and construction.
Phase III - Final Design and
Permitting
Project configuration and specifications that guide
construction. Land use and resource permits and leases
required for construction. Business and operational plans
are finalized and proposed rates are determined.
Phase IV - Construction,
Commissioning, Operation, and
Reporting
Completion of project construction and beginning of
operations. It also includes follow-up O&M reporting
requirements.
RFA AEA10-015 Page 15 of 26 10/7/09
2.3 Phase I – Reconnaissance Requirements
The purpose of a Reconnaissance Study is to determine whether further study is warranted. A
study is required to consider and address the information and tasks below.
Phase I - Reconnaissance
Proposed Energy
Resource
General description of the extent and amount of the renewable resource
Existing Energy
System
For rural power systems and/or facility heating systems
Basic configuration (number, size, and type of generators and
boilers; efficiency; operating hours)
Capital and replacement costs
Annual O&M cost and schedule
Annual fuel consumption and fuel price
Load information (peak, minimum, average, and future trends)
Plans for system upgrades
For all systems
Residential and commercial electrical service rates
Avoided cost of energy
Proposed System
Design
Description of renewable energy technology specific to project
location
Alternative system discussion
Optimum installed capacity
Annual generation
Anticipated barriers
Basic integration concept
Proposed System
Costs
Total anticipated project cost for this phase
Projected Capital, O&M, and fuel costs
Projected debt financing if applicable
Project Benefits Annual fuel displacement and savings over the project life
Annual revenue from energy sales, tax credits, green tags, and
other incentives
Discussion of non-monetary benefits
Energy
Purchase/Sale
Identification of potential energy market
Potential energy purchase and sales rates
Land Ownership Landowner(s) identified and contacted
Permits List of applicable permits
Anticipated permitting timeline
Potential regulatory barriers
Environmental Complete environmental screening that addresses:
Threatened and Endangered species and other habitat impacts
Fisheries and wildlife protection
Water and air quality impacts
Wetland and protected areas
Archaeological and historical resource impacts
Land development constraints
Telecommunications and aviation impacts
Visual and aesthetics resource impacts
Other environmental barriers
Analysis and
Recommendations
Basic economic analysis of alternatives
Recommendations for additional project development work
RFA AEA10-015 Page 16 of 26 10/7/09
Milestones for a Reconnaissance Project should include:
1. Project scoping and contractor solicitation.
2. Resource identification and analysis.
3. Land use, permitting, and environmental analysis.
5. Preliminary design analysis and cost.
4. Cost of energy and market analysis.
5. Simple economic analysis.
6. Final report and recommendations.
2.4 Phase II - Feasibility Analysis, Conceptual Design Requirements
Phase II Feasibility Analysis requires a detailed evaluation intended to further assess technical,
economic, financial, and operational viability of a project and to narrow the focus of final design
and construction. In addition to addressing all the requirements of the Phase I, a feasibility
analysis should address the information and tasks below.
Phase II – Feasibility Analysis, Conceptual Design
Proposed Energy
Resource
Site-specific assessment of available energy resource following industry
standards usually based on field measurements, discussions with
resource owners, and other onsite activities. Examples of assessment
activities include
Collection and analysis of meteorological tower data at
proposed wind turbine locations
Assessment of geological data from surface investigation and
test wells for geothermal and natural gas projects
Stream gauging and hydrological modeling for hydroelectric
projects
Analysis of wood and sawmill residue availability and delivered
cost to biomass energy project locations.
Existing Energy
System
Annual load profile—power projects may require onsite
measurement
Load growth projections
Transmission system layout and capacity
Retirement schedule
Proposed System
Design
Identification and analysis of system alternatives
Recommended alternative including discussion of impacts on
existing system
Assessment of project site, including geotechnical
characteristics as necessary
Annual energy production profile
Conceptual system design
Conceptual integration design
Identification of remaining technical barriers
Project Costs Conceptual level cost estimates for final design and construction
Annual O&M and fuel costs
Other project costs including leases, taxes, insurance, and
financing
Project Benefits Annual fuel displacement and savings over the project life
Detailed analysis of revenue from energy sales, tax credits,
green tags, and other incentives
Discussion of non-monetary benefits
Energy
Purchase/Sale
Preliminary energy purchase or sales agreement
RFA AEA10-015 Page 17 of 26 10/7/09
Land Ownership Assessment of site control requirements for proposed project
Authorization from land owners for onsite feasibility activities
Permits Obtain authorizations from all applicable agencies for any use of
land or resources for feasibility activities
Environmental Site-specific assessment of resources that may be significantly
affected. Examples include fish and wildlife habitat assessment,
visual impact modeling, and air quality assessment.
Plan for addressing potential environmental impacts
Analysis and
Recommendations
Comprehensive economic and financial analyses of alternatives
Recommendations for project design and construction activities
Draft operational and business plan
Milestones for a Feasibility Project should include:
1. Project scoping and contractor solicitation.
2. Detailed energy resource analysis
3. Identification of land and regulatory issues,
4. Permitting and environmental analysis
5. Detailed analysis of existing and future energy costs and markets
6. Assessment of alternatives
7. Conceptual design analysis and cost estimate
8. Detailed economic and financial analysis
9. Conceptual business and operations plans
10. Final report and recommendations
2.5 Phase III - Final Design and Permitting Requirements
Building on information gathered in Phase I and II Applicants will be required to complete Phase
III prior to construction. The purposes of Phase III are to establish the project configuration and
specifications that will be used to guide construction, refine project costs estimates, finalize
business plans, and obtain land use and resource authorizations required for construction. Work
should address the information and tasks below.
Phase III –Final Design & Permitting
Renewable Energy
Resource
Updated data to confirm that resource is still available.
Existing Energy
System
Final engineered and approved energy system configuration
including upgrades
Proposed System
Design
Final engineered and approved system design
Final engineered and approved integration design
Interconnection study
Project Cost Final engineer’s estimate of project cost
Project Benefits Detailed financial analysis based on chosen business structure
and applicable costs, revenues, and incentives
Power Purchase/Sale Executed power purchase/sales agreement
Land Ownership Final land use authorizations obtained
Permits All necessary permits obtained
Environmental All environmental issues resolved
Business &
Operational Plan
Final operational and business plan
RFA AEA10-015 Page 18 of 26 10/7/09
Milestones for a Design and Permitting Phase of a project should include:
1. Project scoping and contractor solicitation for planning and design
2. Permit applications (as needed)
3. Final environmental assessment and mitigation plans (as needed)
4. Resolution of land use, right of way issues
5. Permit approvals
6. Final system design
7. Engineers cost estimate
8. Updated economic and financial analysis
9. Negotiated power sales agreements with approved rates
10. Final business and operational plan
2.6 Phase IV - Project Requirements – Construction
The purpose of the construction phase is to construct and commission the project, begin
operations, and provide follow-up reports on operations and maintenance for a specific period of
time to document the programs impact on the community. Grantees are expected to cover all
costs of operations and maintenance in compliance with their operational and business plans
developed in Phase III. The construction phase will address the information and tasks below
Phase IV –Construction, Commissioning, Operation, and Reporting
Renewable Energy
Resource
Continuous monitoring to verify and update projections and
system efficiency.
Existing Power
System
Coordination of conversion, integration, or surplus of existing
system
Proposed System
Design
Construction plan and schedule
Commissioning plan and schedule
Modifications to final design during construction
Project Cost Actively track project costs against the project budget.
Propose budget modifications as needed
Manage cost overruns
Environmental Environmental monitoring as required
Permitting Reports as required by permitting agencies
Analysis and
Recommendations
Update business plans and power purchase agreements as
needed to account for actual construction costs.
Final project report including as-built specifications and
drawings, final budget, schedule, and recommendations
Periodic operation and maintenance reports as required by
grant including actual O&M, fuel, and equipment costs; O&M
measures and schedule; energy output; project availability;
conversion efficiency; renewable energy resource; and
recommendations
Milestones for a Construction project will include:
1. Confirmation that all design, feasibility, requirements are completed (Ref 2.5)
2. Completion of bid documents
3. Contractor/vendor selection and award
4. Construction Phases – Each project will have unique construction phases, limitations,
and schedule constraints which should be identified by the grantee
5. Integration and testing
6. Decommissioning old systems
7. Final Acceptance, Commissioning and Start-up
8. Operations Reporting
RFA AEA10-015 Page 19 of 26 10/7/09
3. Grant Requirements
To receive renewable energy grants, Applicants must comply with the following standard terms
and conditions and the other terms and conditions in the Authority’s Standard Grant Agreement
Reference Exhibit A. If the grantee is a tribal entity, a waiver of sovereign immunity will be
required as a condition of the grant.
3.1. Declaration of Public Benefit
The Grantee acknowledges and agrees that the Project shall be constructed, owned and
operated for the benefit of the general public and will not deny any person use and/or benefit of
Project facilities due to race, religion, color, national origin, age, physical handicap, sex, marital
status, changes in marital status, pregnancy or parenthood.
3.2. Grantee Project Manager
For construction projects, the Grantee will contract or hire competent persons to manage all
phases of the Project subject to approval by the Authority. Work, at a minimum, will include:
management of Grantee’s labor for the project, engineering firms and consultants, procurement,
management of construction contractors, selection of equipment, review of plans and
specifications, on-site inspections and review and approval of work, submittal of cost
reimbursement requests, and other duties to ensure that the completed work conforms with the
requirements of the grant and the construction documents.
If the Grantee fails to provide adequate project management the Authority may terminate the
Grant or assume project management responsibilities with the concurrence of the Grantee.
Costs for a Project Manager must be reasonable to be considered an eligible grant expense.
3.3. Approval to Proceed With Next Phase
A grant award may be for one or more phases of a project. The Grantee must achieve
substantial completion of work or of designated grant milestones and receive approval from the
Authority prior to proceeding to the next phase of work.
3.4. Contracts for Engineering Services
In the event the Grantee contracts for engineering services, the Grantee will require that the
engineering firm certify that it is authorized to do business in the State of Alaska and provide
proof of business and professional licensing and insurance.
3.5. Site Control
If the grant Project involves the occupancy and use of real property, the Grantee assures that it
has the legal right to occupy and use such real property for the purposes of the grant, and
further that there is legal access to such property. The Grantee is responsible for securing the
real property interests necessary for access and the construction and operation of the Project,
through ownership, leasehold, easement, or otherwise, and for providing evidence satisfactory
to the Authority that it has secured these real property interests.
3.6. Permits
It is the responsibility of the Grantee to identify and ensure that all permits required for the
construction and operation of this Project by the Federal, State, or Local governments have
been obtained unless otherwise stated in Appendix C. These permits may include, but are not
limited to, Corps of Engineers’ Wetlands Permit, State Historic Preservation Office, State Fire
Marshal approval, rights-of -way for the pipelines, and site control, including any necessary
RFA AEA10-015 Page 20 of 26 10/7/09
Coastal Zone Management coordination through the Division of Coastal and Ocean
Management (DNR).
3.7. Exclusion of Existing Environmental Hazards
Grant funds for investigation, removal, decommissioning, or remediation of existing
environmental contamination or hazards, are not allowed unless specifically specified and
approved in Appendix C.
3.8. Environmental Standards
The Grantee will comply with applicable environmental standards, including without limitation
applicable laws for the prevention of pollution, management of hazardous waste, and evaluation
of environmental impacts.
3.9. Current Prevailing Rates of Wage and Employment Preference
Construction projects may require certain grantees to include the requirements for Davis Bacon
and Little Davis Bacon when contracting for construction services. This requires contractors to
pay minimum rates of pay for specific classes of workers and provide certified payrolls to the
State Department of Labor. The current wage rates can be found at the following web sites:
The Federal wage rates at http://www.wdol.gov/
The State wage rates at http://www.labor.state.ak.us/lss/pamp600.htm
If federal funding sources require federal Davis Bacon compliance, the Grantee must use both
the Federal and State wage scale and the contractor is required to pay the higher of the State or
Federal wage scale. When only State Funds are used that requires ―Little Davis Bacon,‖ the
Grantee is only required to follow the State Rate schedule.
For projects that are only State funded, contractors are also required to use local residents
where they are available and qualified in accordance with AS 36.10.150-180, and 8 AAC 30.064
- 088.
The Grantee is responsible for identifying any other sources of project funds and for ensuring
compliance with applicable wage scales for all sources of project funding. If a Grantee believes
they or their contractors may be exempt from these requirements, they should contact the State
of Alaska Department of Labor, Division of Wage and Hour, for a determination and forward a
copy of that determination to the Authority’s Grant Administrator.
3.10. Construction Plans and Specifications Review
Prior to public notice of bidding a construction project the Grantee will provide the plans and
specifications to the Authority for review. Concurrence that the plans and specifications are
consistent with the grant award must be received before grant funds will be released for
construction related costs.
3.11. Construction Insurance and Bonding
When the value of a grant construction project is anticipated to be greater than $100,000, prior
to beginning construction, the Grantee or Grantee’s contractor(s) must provide the Authority
proof of adequate insurance and either a payment and performance bond, as may be required
by AS 36.25.010, a surety in form and substance acceptable to the Authority, or some other
guarantee or assurance acceptable to the Authority that the Grantee or the Grantee’s contractor
has the capacity, qualifications, and financial resources necessary to complete construction of
the project as proposed in the grant or separate construction contract funded by this grant.
RFA AEA10-015 Page 21 of 26 10/7/09
3.12. Post Construction Certification
Upon completion of construction the Grantee will submit a final report that includes:
Certification that all work is completed in accordance with the grant and all costs claimed
are eligible costs and represent work completed on the Project.
Summary of total project cost including detailed funding sources and any outstanding
debt.
Certification that there is a release of any contractor or subcontractor liens on the
project.
Identification of any outstanding construction issues.
As-built drawings.
3.13. Ownership of Facilities
The Grantee shall assume all liabilities arising from the ownership and operation of the Project.
The Grantee will not sell, transfer, encumber, or dispose of any of its interest in the facilities
constructed with this grant funding during the economic life of the Project without prior written
approval of the Authority.
3.14. Operation and Maintenance of Facilities
The Grantee is required to maintain and operate the facilities defined in their Application for the
useful life of the facility or the specific period of time designated in the Grant agreement.
In the event that the Grantee is no longer operating the facilities for the intended purposes the
Authority may require the Grantee to reimburse the Authority an amount based on the total
contribution of the Authority, the value of the assets, and the terms and conditions of this
agreement. The Authority may require that the assets acquired under this agreement be sold
and the proceeds returned to the Authority.
3.15. Performance/Operation and Maintenance (O&M) Reporting
If the grant is for Project construction, the Grantee must provide the Authority with a
Performance/O&M Report annually for five years after Project completion. The
Performance/O&M Report must include: (1) a detailed description of Project operations and
maintenance activities and issues; and (2) a detailed description of Project performance,
including energy output, estimated fuel savings resulting from the operation of the Project, and
any other relevant measures of Project performance reasonably requested by the Authority, a
description of repairs and modifications to the Project, and recommendations for improvements
for similar future projects.
The Authority may take into account the Grantee’s failure to provide the required annual
Performance/O&M Report in evaluating future applications from the Grantee for grant funds.
The Authority encourages grantees to provide annual Performance/O&M reports for the life of
the Project, and may consider the Grantee’s voluntary submittal of annual Performance/O&M
reports beyond the first five years in evaluating future applications from the Grantee for grant
funds.
3.16. Tariffs & Rates for Use of Grant-Funded Assets
Rates for power provided as a result of generation or transmission facilities built with grant funds
may be subject to review and approval by the Regulatory Commission of Alaska (RCA), or if the
rates are not subject to RCA review and approval, they will be subject to review and approval by
the Authority to ensure reasonable and appropriate public benefit from the Project.
RFA AEA10-015 Page 22 of 26 10/7/09
As a condition of the grant, IPP’s will agree to sell energy resources for electricity and heat at a
cost-based rate. AEA will hire an independent economist to provide guidance in developing a
cost-based rate for electric sales with an appropriate rate of return on equity.
The allowable cost-based rate represents the highest rate that the IPP will be allowed to charge.
Because the cost-based rates are a grant condition, avoided cost rates or Public Utility
Regulations Policies Act (PURPA) rates will not apply for projects which obtain grant funding.
Application for a Certificate of Public Convenience and Necessity (CPCN) is also a grant
condition. RCA action must be completed prior to the issuance of any construction grant
funding.
3.17. Grant-Funded Assets Not Included in PCE
The Grantee agrees that it will not include the value of facilities, equipment, services, or other
benefits received under this grant as expenses under the Power Cost Equalization Program or
as expenses on which wholesale or retail rates or any other energy tariffs are based.
4. Application Evaluation Process
Applications will be reviewed in four stages by application evaluation committees, which may
include the Authority staff, consultants, and members of the Advisory Committee established
under the program legislation.
Stage 1 – Completeness and Eligibility Review (3 AAC 107.635)
Stage 2 – Feasibility and Public Benefit Review (3 AAC 107.645)
Stage 3 – Evaluation of Individual Applications (3 AAC 107.655)
Stage 4 – Regional and Final Ranking Recommendations (3 AAC 107.660)
Applications that do not comply with AS 42.45.45, 3 AAC 107.600 - .695, and all of the material
and substantial terms, conditions, and requirements of this RFA may be rejected. If an
application is rejected the Applicant will be notified in writing that its application has been
rejected and the basis for rejection.
The Authority may waive minor requirements of the RFA that do not result in a material change
in the requirements of the RFA and do not give an Applicant an unfair competitive advantage.
At any stage in the review process the Authority may request clarifying information and the
Applicant will have a specified amount of time to respond to the request for information. Failure
to respond timely or provide adequate information will result in the application being rejected.
If information is sufficient the application will be forwarded through to the next stage of review.
4.1 Stage 1 Review: Completeness and Eligibility
All applications received by the deadline will initially be reviewed in by Authority staff to assess if
the application is complete, meets the minimum submission requirements, and has adequate
information to proceed to Stage 2 – Feasibility and Public Benefit Review.
RFA AEA10-015 Page 23 of 26 10/7/09
The following pass-fail criteria will be used to determine if the application meets the minimum
requirements.
Application
must meet all of
these criteria to
be considered
further.
1. The application is submitted by an Eligible Applicant (sec 1.2).
2. The project meets the definition of an Eligible Project (sec 1.3).
3. A resolution or other formal authorization of the Applicant’s governing
body is included with the application to demonstrate the Applicant’s
commitment to the project and any proposed use of matching
resources (sec 1.2).
4. The application provides a detailed description of the phase(s) of
project proposed, i.e. reconnaissance study, conceptual
design/feasibility study, final design/permitting, and/or construction
(sec 2.1).
5. The application is complete in that the information provided is
sufficiently responsive to the RFA to allow AEA to consider the
application in the next stage of evaluation.
6. The Applicant demonstrates that they will take ownership of the
project; own, lease, or otherwise control the site upon which the
project is located; and upon completion of the project operate and
maintain it for its economic life for the benefit of the public. (sec 1.2)
If an application is ambiguous regarding questions 1-6, the Authority may request clarifying
information and the Applicant will have a specified amount of time to provide the requested
information. Failure to respond timely or provide an adequate explanation will result in the
application being rejected.
4.2 Stage 2 Review: Project Feasibility and Benefits
All applications that pass Stage 1 the Authority will perform a benefit and feasibility review in
accordance with 3 AAC 107.645 and the criteria below:
RFA AEA10-015 Page 24 of 26 10/7/09
Application
must
substantially
meet these
criteria to be
considered
further.
1. Project Management, Development, and Operation
a. The proposed schedule is clear, realistic, and described in
adequate detail.
b. The cost savings estimates for project development, operation,
maintenance, fuel, and other project items are realistic,
c. The project team’s method of communicating, monitoring, and
reporting development progress is described in adequate detail.
d. Logistical, business, and financial arrangements for operating and
selling energy from the completed project are reasonable and
described in adequate detail.
2. Qualifications and Experience
a. The Applicant, partners, and contractors have sufficient knowledge
and experience to successfully complete and operate the project.
b. The project team has staffing, time, and other resources to
successfully complete and operate the project.
c. The project team is able to understand and address technical,
economic, and environmental barriers to successful project
completion and operation.
d. The project uses local labor and trains a local labor workforce.
3. Technical Feasibility
a. The renewable energy resource is available on a sustainable
basis, and project permits and other authorizations can reasonably
be obtained.
b. A site is available and suitable for the proposed energy system.
c. Project technical and environmental risks are reasonable.
d. The proposed energy system can reliably produce and deliver
energy as planned.
e. If a demonstration project is being proposed:
Application in other areas of the state, or another specific
benefit of the proposed project, is likely:
need for this project is shown (vs the ability to use existing
technology); and
the risks of the proposed system are reasonable and warrant
demonstration.
4. Economic Feasibility and Benefits
a. The project is shown to be economically feasible (net savings in
fuel, operation and maintenance, and capital costs over the life of
the proposed project). In determining economic feasibility and
benefits applications will be evaluated anticipating the grantee will
use cost-based rates. Avoided cost rates alone will not be
presumed to be in the best interest of the public.
b. The project has an adequate financing plan for completion of the
grant-funded phase and has considered options for financing
subsequent phases of the project
c. Other benefits to the Alaska public are demonstrated.
The Authority may develop a preliminary list of applications that may be technically and
economically feasible and request additional information from Applicants at this time to confirm
a complete understanding of the project proposed.
RFA AEA10-015 Page 25 of 26 10/7/09
If information is requested, the Applicant may be required to provide information within a short
time frame to allow for the Authority to continue to the next stage of the review process.
Applicants that fail to respond to requests for information or to adequately address the criteria in
the technical review may be rejected.
4.3 Stage 3 Review: Evaluation of Individual Applications
All applications that pass the technical review will be evaluated for the purpose of ranking
applications and making recommendations to the Legislature based on the following criteria
which include criteria required by 3 AAC 107.655 and AS 42.45.045.
Evaluation and
Ranking
Criteria to be
Used for
determining
applications to
recommend to
legislature
1. Cost of energy per resident in the effected project area relative to
other areas.
2. The type and amount of matching funds and other resources an
Applicant will commit to the project.
3. A statewide balance of grant funds (For example, if there are two or
more similar competing projects in a given area the Authority may
only recommend one in the final ranking).
4. Economic and technical feasibility (Stage 2 evaluation).
5. Public benefits including economic benefit to the Alaska Public.
6. Sustainability – the ability of the application to finance, operate and
maintain the project for the life of the project.
7. The readiness of the Applicant to proceed with phases of the project
proposed for the grant.
8. Compliance with previous grant awards and progress in previous
phases of project development.
9. Local support for the project.
During this stage of review the evaluation team may conduct interviews of Applicants to
determine a more complete understanding of the technical or financial aspects of their
application.
4.4. Stage 4 Review: Final Ranking Recommendations
All applications recommended for grants as a result the Stage 3 evaluation will be ranked in
accordance with 3 AAC 107.660.
To establish a statewide balance of recommended projects, the Authority will provide to the
advisory committee a statewide and regional ranking of all applications recommended for grants
in Stage 3.
In consultation with the advisory committee the Authority will make a final prioritized list of all
recommended projects giving significant weight to providing a statewide balance for grant
money, and taking into consideration the amount of money that may be available, the number
and types of project within each region, regional rank, and statewide rank of each application.
In its final decision on an application the Authority may recommend a grant in an amount for the
project phases different from what the Applicant requested. In recommending a grant for
phases different from what the Applicant requested, the authority may limit its recommendation
to a grant for one or more preliminary project phases before recommending a grant for project
construction.
RFA AEA10-015 Page 26 of 26 10/7/09
5. Appendices
Grant Application Form
Cost Worksheet
Budget Form Instructions
Grant Budget Form
Sample Grant Form
Renewable Energy Fund Round 3
Grant Application
AEA 10-015 Application Page 1 of 12 10/7/2009
Application Forms and Instructions
The following forms and instructions are provided to assist you in preparing your application for
a Renewable Energy Fund Grant. An electronic version of the Request for Applications (RFA)
and the forms are available online at: http://www.akenergyauthority.org/RE_Fund-III.html
Grant Application
Form
GrantApp3.doc Application form in MS Word that includes an outline of
information required to submit a complete application.
Applicants should use the form to assure all information is
provided and attach additional information as required.
Application Cost
Worksheet
Costworksheet3
.doc
Summary of Cost information that should be addressed by
applicants in preparing their application.
Grant Budget
Form
GrantBudget3.d
oc
A detailed grant budget that includes a breakdown of costs by
milestone and a summary of funds available and requested to
complete the work for which funds are being requested.
Grant Budget
Form Instructions
GrantBudgetInst
ructions3.pdf
Instructions for completing the above grant budget form.
If you are applying for grants for more than one project, provide separate application
forms for each project.
Multiple phases for the same project may be submitted as one application.
If you are applying for grant funding for more than one phase of a project, provide
milestones and grant budget for completion of each phase.
If some work has already been completed on your project and you are requesting
funding for an advanced phase, submit information sufficient to demonstrate that the
preceding phases are satisfied and funding for an advanced phase is warranted.
If you have additional information or reports you would like the Authority to consider in
reviewing your application, either provide an electronic version of the document with
your submission or reference a web link where it can be downloaded or reviewed.
REMINDER:
Alaska Energy Authority is subject to the Public Records Act AS 40.25, and materials
submitted to the Authority may be subject to disclosure requirements under the act if no
statutory exemptions apply.
All applications received will be posted on the Authority web site after final
recommendations are made to the legislature.
In accordance with 3 AAC 107.630 (b) Applicants may request trade secrets or
proprietary company data be kept confidential subject to review and approval by the
Authority. If you want information is to be kept confidential the applicant must:
o Request the information be kept confidential.
o Clearly identify the information that is the trade secret or proprietary in their
application.
o Receive concurrence from the Authority that the information will be kept
confidential. If the Authority determines it is not confidential it will be treated as a
public record in accordance with AS 40.25 or returned to the applicant upon
request.
Renewable Energy Fund
Grant Application Round 3
AEA10-015 Grant Application Page 2 of 12 10/7/2009
SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Type of Entity:
Mailing Address
Physical Address
Telephone
Fax
Email
1.1 APPLICANT POINT OF CONTACT
Name
Title
Mailing Address
Telephone
Fax
Email
1.2 APPLICANT MINIMUM REQUIREMENTS
Please check as appropriate. If you do not to meet the minimum applicant requirements, your
application will be rejected.
1.2.1 As an Applicant, we are: (put an X in the appropriate box)
An electric utility holding a certificate of public convenience and necessity under AS
42.05, or
An independent power producer in accordance with 3 AAC 107.695 (a) (1), or
A local government, or
A governmental entity (which includes tribal councils and housing authorities);
Yes
or
No
1.2.2. Attached to this application is formal approval and endorsement for its project by
its board of directors, executive management, or other governing authority. If the
applicant is a collaborative grouping, a formal approval from each participant’s
governing authority is necessary. (Indicate Yes or No in the box )
Yes
or
No
1.2.3. As an applicant, we have administrative and financial management systems and
follow procurement standards that comply with the standards set forth in the grant
agreement.
Yes
or
No
1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached
grant form. (Any exceptions should be clearly noted and submitted with the
application.)
Yes
or
No
1.2.5 We intend to own and operate any project that may be constructed with grant
funds for the benefit of the general public.
Renewable Energy Fund
Grant Application Round 3
AEA10-015 Grant Application Page 3 of 12 10/7/2009
SECTION 2 – PROJECT SUMMARY
This is intended to be no more than a 1-2 page overview of your project.
2.1 Project Title – (Provide a 4 to 5 word title for your project)
Type in your answer here and follow same format for rest of the application.
2.2 Project Location –
Include the physical location of your project and name(s) of the community or communities that will
benefit from your project.
Answer here.
2.3 PROJECT TYPE
Put X in boxes as appropriate
2.3.1 Renewable Resource Type
Wind Biomass or Biofuels
Hydro, including run of river Transmission of Renewable Energy
Geothermal, including Heat Pumps Small Natural Gas
Heat Recovery from existing sources Hydrokinetic
Solar Storage of Renewable
Other (Describe)
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Reconnaissance Design and Permitting
Feasibility Construction and Commissioning
Conceptual Design
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of your proposed project.
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2.5 PROJECT BENEFIT
Briefly discuss the financial and public benefits that will result from this project, (such as reduced fuel
costs, lower energy costs, etc.)
2.6 PROJECT BUDGET OVERVIEW
Briefly discuss the amount of funds needed, the anticipated sources of funds, and th e nature and source
of other contributions to the project.
2.7 COST AND BENEFIT SUMARY
Include a summary of grant request and your project’s total costs and benefits below.
Grant Costs
(Summary of funds requested)
2.7.1 Grant Funds Requested in this application. $
2.7.2 Other Funds to be provided (Project match) $
2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $
Project Costs & Benefits
(Summary of total project costs including work to date and future cost estimates to get to a fully
operational project)
2.7.4 Total Project Cost (Summary from Cost Worksheet
including estimates through construction)
$
2.7.5 Estimated Direct Financial Benefit (Savings) $
2.7.6 Other Public Benefit (If you can calculate the benefit in
terms of dollars please provide that number here and
explain how you calculated that number in your application
(Section 5.)
$
Renewable Energy Fund
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SECTION 3 – PROJECT MANAGEMENT PLAN
Describe who will be responsible for managing the project and provide a plan for successfully
completing the project within the scope, schedule and budget proposed in the application.
3.1 Project Manager
Tell us who will be managing the project for the Grantee and include a resume and references
for the manager(s). If the applicant does not have a project manager indicate how you intend to
solicit project management support. If the applicant expects project management assistance
from AEA or another government entity, state that in this section.
Type in your answer here and follow same format for rest of the application.
3.2 Project Schedule
Include a schedule for the proposed work that will be funded by this grant. (You may include a
chart or table attachment with a summary of dates below.)
3.3 Project Milestones
Define key tasks and decision points in your project and a schedule for achieving them. The
Milestones must also be included on your budget worksheet to demonstrate how you propose to
manage the project cash flow. (See Section 2 of the RFA or the Budget Form.)
3.4 Project Resources
Describe the personnel, contractors, equipment, and services you will use to accomplish the
project. Include any partnerships or commitments with other entities you have or anticipate will
be needed to complete your project. Describe any existing contracts and the selection process
you may use for major equipment purchases or contracts. Include brief resumes and references
for known, key personnel, contractors, and suppliers as an attachment to your application.
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
3.6 Project Risk
Discuss potential problems and how you would address them.
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SECTION 4 – PROJECT DESCRIPTION AND TASKS
Tell us what the project is and how you will meet the requirements outlined in Section 2 of
the RFA.
The level of information will vary according to phase(s) of the project you propose to
undertake with grant funds.
If you are applying for grant funding for more than one phase of a project provide a
plan and grant budget form for completion of each phase.
If some work has already been completed on your project and you are requesting funding for
an advanced phase, submit information sufficient to demonstrate that the preceding phases
are satisfied and funding for an advanced phase is warranted.
4.1 Proposed Energy Resource
Describe the potential extent/amount of the energy resource that is available.
Discuss the pros and cons of your proposed energy resource vs. other alternatives that may be
available for the market to be served by your project.
4.2 Existing Energy System
4.2.1 Basic configuration of Existing Energy System
Briefly discuss the basic configuration of the existing energy system. Include information about
the number, size, age, efficiency, and type of generation.
4.2.2 Existing Energy Resources Used
Briefly discuss your understanding of the existing energy resources. Include a brief discussion of
any impact the project may have on existing energy infrastructure and resources.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
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4.3 Proposed System
Include information necessary to describe the system you are intending to develop and address
potential system design, land ownership, permits, and environmental issues.
4.3.1 System Design
Provide the following information for the proposed renewable energy system:
A description of renewable energy technology specific to project location
Optimum installed capacity
Anticipated capacity factor
Anticipated annual generation
Anticipated barriers
Basic integration concept
Delivery methods
4.3.2 Land Ownership
Identify potential land ownership issues, including whether site owners have agreed to the
project or how you intend to approach land ownership and access issues.
4.3.3 Permits
Provide the following information as it may relate to permitting and how you intend to address
outstanding permit issues.
List of applicable permits
Anticipated permitting timeline
Identify and discussion of potential barriers
4.3.4 Environmental
Address whether the following environmental and land use issues apply, and if so how they will
be addressed:
Threatened or Endangered species
Habitat issues
Wetlands and other protected areas
Archaeological and historical resources
Land development constraints
Telecommunications interference
Aviation considerations
Visual, aesthetics impacts
Identify and discuss other potential barriers
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4.4 Proposed New System Costs and Projected Revenues
(Total Estimated Costs and Projected Revenues)
The level of cost information provided will vary according to the phase of funding requested and
any previous work the applicant may have done on the project. Applicants must reference the
source of their cost data. For example: Applicants Records or Analysis, Industry Standards,
Consultant or Manufacturer’s estimates.
4.4.1 Project Development Cost
Provide detailed project cost information based on your current knowledge and understanding of
the project. Cost information should include the following:
Total anticipated project cost, and cost for this phase
Requested grant funding
Applicant matching funds – loans, capital contributions, in-kind
Identification of other funding sources
Projected capital cost of proposed renewable energy system
Projected development cost of proposed renewable energy system
4.4.2 Project Operating and Maintenance Costs
Include anticipated O&M costs for new facilities constructed and how these would be funded by
the applicant.
(Note: Operational costs are not eligible for grant funds however grantees are required to meet
ongoing reporting requirements for the purpose of reporting impacts of projects on the
communities they serve.)
4.4.3 Power Purchase/Sale
The power purchase/sale information should include the following:
Identification of potential power buyer(s)/customer(s)
Potential power purchase/sales price - at a minimum indicate a price range
Proposed rate of return from grant-funded project
4.4.4 Project Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered
in evaluating the project.
Download the form, complete it, and submit it as an attachment. Document any conditions or
sources your numbers are based on here.
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SECTION 5– PROJECT BENEFIT
Explain the economic and public benefits of your project. Include direct cost savings,
and how the people of Alaska will benefit from the project.
The benefits information should include the following:
Potential annual fuel displacement (gal and $) over the lifetime of the evaluated
renewable energy project
Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price,
RCA tariff, or cost based rate)
Potential additional annual incentives (i.e. tax credits)
Potential additional annual revenue streams (i.e. green tag sales or other renewable
energy subsidies or programs that might be available)
Discuss the non-economic public benefits to Alaskans over the lifetime of the project
SECTION 6– SUSTAINABILITY
Discuss your plan for operating the completed project so that it will be sustainable.
Include at a minimum:
Proposed business structure(s) and concepts that may be considered.
How you propose to finance the maintenance and operations for the life of the project
Identification of operational issues that could arise.
A description of operational costs including on-going support for any back-up or existing
systems that may be require to continue operation
Commitment to reporting the savings and benefits
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SECTION 7 – READINESS & COMPLIANCE WITH OTHER GRANTS
Discuss what you have done to prepare for this award and how quickly you intend to proceed
with work once your grant is approved.
Tell us what you may have already accomplished on the project to date and identify other grants
that may have been previously awarded for this project and the degree you have been able to
meet the requirements of previous grants.
SECTION 8– LOCAL SUPORT
Discuss what local support or possible opposition there may be regarding your project. Include
letters of support from the community that would benefit from this project.
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SECTION 9 – GRANT BUDGET
Tell us how much you want in grant funds Include any investments to date and funding sources,
how much is being requested in grant funds, and additional investments you will make as an
applicant.
Include an estimate of budget costs by milestones using the form – GrantBudget3.doc
Provide a narrative summary regarding funding sources and your financial commitment to the
project.
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AEA10-015 Grant Application Page 12 of 12 10/7/2009
SECTION 9 – ADDITIONAL DOCUMENTATION AND CERTIFICATION
SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION:
A. Resumes of Applicant’s Project Manager, key staff, partners, consultants, and
suppliers per application form Section 3.1 and 3.4.
B. Cost Worksheet per application form Section 4.4.4.
C. Grant Budget Form per application form Section 9.
D. Letters demonstrating local support per application form Section 8.
E. An electronic version of the entire application on CD per RFA Section 1.6.
F. Governing Body Resolution or other formal action taken by the applicant’s
governing body or management per RFA Section 1.4 that:
- Commits the organization to provide the matching resources for project at the
match amounts indicated in the application.
- Authorizes the individual who signs the application has the authority to
commit the organization to the obligations under the grant.
- Provides as point of contact to represent the applicant for purposes of this
application.
- Certifies the applicant is in compliance with applicable federal, state, and local,
laws including existing credit and federal tax obligations.
F. CERTIFICATION
The undersigned certifies that this application for a renewable energy grant is truthful
and correct, and that the applicant is in compliance with, and will continue to comply
with, all federal and state laws including existing credit and federal tax obligations.
Print Name
Signature
Title
Date
Renewable Energy Fund Round 3
Project Cost/Benefit Worksheet
RFA AEA10-015 Application Cost Worksheet Page 1 10-7-09
Please note that some fields might not be applicable for all technologies or all project
phases. The level of information detail varies according to phase requirements.
1. Renewable Energy Source
The Applicant should demonstrate that the renewable energy resource is available on a
sustainable basis.
Annual average resource availability.
Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel)
2. Existing Energy Generation and Usage
a) Basic configuration (if system is part of the Railbelt1 grid, leave this section blank)
i. Number of generators/boilers/other
ii. Rated capacity of generators/boilers/other
iii. Generator/boilers/other type
iv. Age of generators/boilers/other
v. Efficiency of generators/boilers/other
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor
ii. Annual O&M cost for non-labor
c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the
Railbelt grid, leave this section blank)
i. Electricity [kWh]
ii. Fuel usage
Diesel [gal]
Other
iii. Peak Load
iv. Average Load
v. Minimum Load
vi. Efficiency
vii. Future trends
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu]
ii. Electricity [kWh]
iii. Propane [gal or MMBtu]
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry tons]
vi. Other
1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric
Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power.
Renewable Energy Fund Round 3
Project Cost/Benefit Worksheet
RFA AEA10-015 Application Cost Worksheet Page 2 10-7-09
3. Proposed System Design Capacity and Fuel Usage
(Include any projections for continued use of non-renewable fuels)
a) Proposed renewable capacity
(Wind, Hydro, Biomass, other)
[kWh or MMBtu/hr]
b) Proposed Annual electricity or heat production (fill in as applicable)
i. Electricity [kWh]
ii. Heat [MMBtu]
c) Proposed Annual fuel Usage (fill in as applicable)
i. Propane [gal or MMBtu]
ii. Coal [tons or MMBtu]
iii. Wood [cords, green tons, dry tons]
iv. Other
4. Project Cost
a) Total capital cost of new system
b) Development cost
c) Annual O&M cost of new system
d) Annual fuel cost
5. Project Benefits
a) Amount of fuel displaced for
i. Electricity
ii. Heat
iii. Transportation
b) Price of displaced fuel
c) Other economic benefits
d) Amount of Alaska public benefits
6. Power Purchase/Sales Price
a) Price for power purchase/sale
7. Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio
Payback
Renewable Energy Fund Round 3
RFA AEA10-015 Grant Budget Instructions Page 1 of 5 10-7-09
Grant Budget Instructions
NOTICE TO GRANTEES
Reimbursement to a Grantee under this program is on a cost reimbursable basis. In
accordance with the terms of the grant a Grantee is required to submit certified requests
for reimbursements that document commitments and expenditures and demonstrate
meeting milestones identified in the grant.
A proposed reimbursement schedule tied to completion of milestones must be identified
in the applicant’s proposal. The Alaska Energy Authority (“AEA” or “Authority”) will not
approve a reimbursement schedule that does not reflect costs or commitments tied to
the accomplishment of milestones identified in the grant. The final reimbursement
schedule is subject to negotiation and will be incorporated into the grant agreement.
The Authority may authorize a percentage of grant funds, up to 20% depending on the
type of grant, as an advance reimbursement at the start up of the grant.
The Authority may also withhold up to 20% of the total grant subject to completion of the
project and submission of final reports and other documentation that may be required by
the grant.
A Grantee is required to account for and document all expenditures of grant and
matching funds including documentation of expenditures on any advanced
reimbursement. All requests for reimbursement are subject to audit by the Authority.
The Grantee is also required to comply with 2.AAC.45.010, the State Single Audit
regulations.
1. Budget Form
Information concerning the proposed grant budget needs to be provided on the Grant Budget
Form. The Grantee must tie their budget request to the proposed milestones they propose in
their application. Examples of milestones for each project phase are included with the budget
form and in Section 2 of the RFA.
For the purposes of determining potential cash-flow and a reimbursement schedule Grantees
should use the form to identify the proposed date that the milestone would be met, the
anticipated amount of grant funds to be expended to meet that milestone, and the amount and
type of matching resources they intend to apply to that milestone.
The bottom part of the form includes the allowable Budget Categories and is intended to be a
summary of types of cost for each phase of the grant.
2. Allowable Costs
Allowable costs for a grant include all reasonable and ordinary costs for direct labor and
benefits, travel, equipment, supplies, contractual services, construction services, and other
direct costs identified that are necessary for and incurred as a direct result of the project.
Grant Budget Instructions
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RFA AEA10-015 Grant Budget Instructions Page 2 of 5 10-7-09
A cost is reasonable and ordinary if, in its nature or amount, it does not exceed that which would
be incurred by a prudent person under the circumstances prevailing at the time the decision was
made to incur the costs.
Allowable costs under this grant include all reasonable and ordinary costs for direct labor &
benefits, travel, equipment, supplies, contractual services, construction services, and other
direct costs identified and approved in the Project budget that are necessary for and incurred as
a direct result of the Project and are consistent with the requirements of the grant agreement.
A cost is reasonable and ordinary if, in its nature and amount, it does not exceed that which
would be incurred by a prudent person under the circumstances prevailing at the time the
decision was made to incur the costs.
Allowable costs are only those costs that are directly related to activities authorized by the Grant
Agreement and necessary for the Project. The categories of costs and additional limits or
restrictions are listed below:
a. Direct Labor & Benefits
Include salaries, wages, and employee benefits of the Grantee‟s employees for that portion
of those costs attributable to the time actually devoted by each employee to, and necessary
for the Project. Direct labor costs do not include bonuses, stock options, other payments
above base compensation and employee benefits, severance payments or other termination
allowances paid to the Grantee‟s employees.
b. Travel, Meals, or Per Diem
Include reasonable travel expenses necessary for the Project. These include necessary
transportation and meal expenses or per diem of Grantee employees for which expenses
the employees are reimbursed under the Grantee‟s standard written operating practice for
travel and per diem or the current State of Alaska Administrative Manual for employee
travel.
c. Equipment
Include costs of acquiring, transporting, leasing, installing, operating, and maintaining
equipment necessary for the Project, including sales and use taxes. Equipment owned by
the Grantee is to be charged to the project at the monthly rates contained in the Data Quest
Blue Book. The rates for equipment owned by the Grantee for less than a month‟s duration
are to be computed on an hourly charge determined by dividing the monthly rate by 176.
Equipment rented by the Grantee can be charged to the grant at actual invoiced charge
rates, subject to a maximum amount equal to the hourly rates contained in the Data Quest
Blue Book. The Authority‟s Project Manager must approve all equipment charge rates to be
used by the Grantee. The Data Quest Blue Book is available to the AEA Project Managers
and grantees may contact them for current allowable rates.
Subject to prior approval of the Authority‟s Project Manager, costs or expenses necessary to
repair or replace equipment damage or losses incurred in performance of work under the
grant may be allowed. However, damage or losses that result from the Grantee‟s
Grant Budget Instructions
Renewable Energy Fund Round 3
RFA AEA10-015 Grant Budget Instructions Page 3 of 5 10-7-09
employees, officer‟s, or contractor‟s gross negligence, willful misconduct, or criminal conduct
will not be allowed.
d. Materials and Supplies
Include costs of material, office expenses, communications, computers, and supplies
purchased or leased by the Grantee necessary for the Project.
e. Contractual services
Include the Grantee‟s cost of contract services necessary for the Project. Services may
include costs of contract feasibility studies, project management services, engineering and
design, environmental studies, field studies, and surveys for the project as well as costs
incurred to comply with ecological, environmental, and health and safety laws.
f. Construction Services
For construction projects this includes the Grantee‟s cost for construction contracts, labor,
equipment, materials, insurance, bonding, and transportation necessary for the Project.
Work performed by the Grantee‟s employees during construction may be budgeted under
direct labor and benefits. Contracted project management or engineering may be budgeted
under contractual services and major equipment purchases made by the Grantee may be
budgeted under equipment.
g. Other Direct Costs
In addition to the above the following expenses necessary for the Project may be allowed.
Net insurance premiums paid for insurance required for the grant Project;
Costs of permits and licenses for the grant Project;
Non-litigation legal costs for the Project directly relating to the activities; in this
paragraph, “non-litigation legal costs” includes expenses for the Grantee‟s legal staff and
outside legal counsel performing non-litigation legal services;
Office lease/rental payments;
Other direct costs for the Project directly relating to the activities and identified in the
grant documents; and/or
Land or other real property or reasonable and ordinary costs related to interests in land
including easements, right-of-ways, or other defined interests.
3. Specific Expenditures not allowed
Ineligible expenditures include costs for overhead, lobbying, entertainment , alcohol, litigation,
payments for civil or criminal restitution, judgments, interest on judgments, penalties, fines,
costs not necessary for and directly related to the grant Project, or any costs incurred before the
beginning date of the grant as indicated on the signature page.
Grant Budget Instructions
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Overhead costs described in this section include:
salaries, wages, applicable employee benefits, and business-related expenses of the
Grantee‟s employees performing functions not directly related to the grant Project;
office and other expenses not directly related to the grant Project; and
costs and expenses of administration, accounting, human resources, training, property
and income taxes, entertainment, self-insurance, and warehousing.
4. Match and Cost Sharing
If the Applicant is providing a match, it is should be detailed either as a specific dollar amount or
as a percentage of the total project budget. The type and amount of matching contributions
should be discussed in the application under section two.
Cost sharing or matching is that portion of the Project costs not borne by the Authority. The
Authority will accept all contributions, including cash and in-kind, as part of the Applicants‟ cost
sharing or matching when such contributions meet the following criteria:
Are provided for in the Project budget;
Are verifiable from the Applicant‟s records;
Third party costing sharing contributions are verifiable (with a letter of intent or similar
document);
Are not included as contributions for another state or federally assisted project or
program (i.e., the same funds cannot be counted as match for more than one program);
Are necessary and reasonable for proper and efficient accomplishment of the Project or
program objectives;
Are allowable costs;
Are not paid by the State or federal government under another award, except for
authorized by the State or federal statute to be used for cost sharing or matching;
Must be incurred within the grant eligible time period.
Any match proposed with the application will be required in the Grant award and the Grantee
will be required to document the use of the proposed matching funds or in-kind contributions
with their request for reimbursement.
5. Valuing In-Kind Support as Match
If the Applicant chooses to use in-kind support as some; or, its entire match, the values of those
contributions will be reviewed by the Authority at the time the budget is approved. The values
will be determined as follows:
The value of real property will be the current fair market value as determined by an
independent third party or a valuation that is mutually agreed to by the Authority and the
Applicant and approved in the grant budget.
Grant Budget Instructions
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The value assessed to Applicant equipment or supplies will not exceed the approved
equipment rates or fair market value of the supplies at the time the grant is approved or
amended.
Equipment usage will be valued based on approved usage rates that are determined in
accordance with the item „c.‟ above. Rates paid will not exceed the fair market value of
the equipment if purchased.
Rates for donated personal services will be based on rates paid for similar work and skill
level in the recipient‟s organization. If the required skills are not found in the recipient
organization, rates will be based on rates paid for similar work in the labor market.
Fringe benefits that are reasonable, allowable, and allocable may be included in the
valuation.
Transportation and lodging provided by the Applicant for non-local labor will not exceed
the commercial rates that may be available within the community or region.
6. Grant Disbursements
Applicants are reminded that they must request disbursement of grant funds in the form and
format required by the Authority with appropriate back-up documentation and certifications.
This format will be provided by the Authority.
The back-up documentation must demonstrate the total costs incurred are allowable, and reflect
the amount being billed. Documentation must include:
A summary of direct labor costs supported by timesheets or other valid time record to
document proof of payment.
Travel and per diem reimbursement documentation.
Contractor or vendor payment requests.
Invoices.
Payment of grant funds will be subject to the Applicant complying with its matching contribution
requirements of the proposed grant.
Payment of grant funds will be made by AEA to the Grantee within 30 days of receipt of a
properly completed, supported, and certified Reimbursement Request.
Renewable Energy Fund Grant Round III Grant Budget Form 10-7-09
Milestone or Task Anticipated
Completion Date
RE- Fund
Grant Funds
Grantee Matching
Funds
Source of Matching
Funds:
Cash/In-kind/Federal
Grants/Other State
Grants/Other
TOTALS
(List milestones based on phase and type of project.
See Attached Milestone list. )
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$
$
TOTALS $
Budget Categories:
Direct Labor & Benefits $ $ $
Travel & Per Diem $ $ $
Equipment $ $ $
Materials & Supplies $ $ $
Contractual Services $ $ $
Construction Services $ $ $
Other $ $ $
TOTALS $ $ $
Applications should include a separate worksheet for each project phase (Reconnaissance, Feasibility, Design and Permitting, and Construction)-
Add additional pages as needed
Renewable Energy Fund Grant Round III Grant Budget Form 10-7-09
Project Milestones that should be addressed in Budget Proposal
Reconnaissance Feasibility Design and Permitting Construction
1. Project scoping and
contractor solicitation.
2. Resource identification and
analysis
3. Land use, permitting, and
environmental analysis
5. Preliminary design analysis
and cost
4. Cost of energy and market
analysis
5. Simple economic analysis
6. Final report and
recommendations
1. Project scoping and contractor
solicitation.
2. Detailed energy resource
analysis
3. Identification of land and
regulatory issues,
4. Permitting and environmental
analysis
5. Detailed analysis of existing
and future energy costs and
markets
6. Assessment of alternatives
7. Conceptual design analysis
and cost estimate
8. Detailed economic and
financial analysis
9, Conceptual business and
operations plans
10. Final report and
recommendations
1. Project scoping and contractor
solicitation for planning and
design
2. Permit applications (as
needed)
3. Final environmental
assessment and mitigation
plans (as needed)
4. Resolution of land use, right of
way issues
5. Permit approvals
6. Final system design
7. Engineers cost estimate
8. Updated economic and
financial analysis
9. Negotiated power sales
agreements with approved
rates
10. Final business and operational
plan
1. Confirmation that all design
and feasibility requirements
are complete.
2. Completion of bid documents
3. Contractor/vendor selection
and award
4. Construction Phases –
Each project will have unique
construction phases, limitations,
and schedule constraints which
should be identified by the
grantee
5. Integration and testing
6. Decommissioning old
systems
7. Final Acceptance,
Commissioning and Start-up
8. Operations Reporting
Alaska Energy Authority
Grant Agreement
Grant Agreement Number
[Buy-from Vendor No.]
Amount of Funds:
$ GRANT AMOUNT
Project Code(s)
[Shortcut Dimension
2 Code]
Encumbrance Number/AR
[No.]
Period of Performance:
From: To:
Project Title:
[Posting Description]
Grantee Grantor
Name
[Name] [Name 2] Alaska Energy Authority
Street/PO Box
[Address]
Street/PO Box
813 W. Northern Lights Blvd
City/State/Zip
[City], [ZIP Code] [Country Code]
City/State/Zip
Anchorage, AK 99503
Contact Person
[Pay-to Constituent]
Contact Person
[Your Reference], Project Manager
Phone:
907-999-9999
Fax:
907-999-9999
E-mail:
Phone:
907-771-9999
Fax:
907-771-3044
E-mail:
AGREEMENT
The Alaska Energy Authority (hereinafter „Authority‟) and [Name] [Name 2] (hereinafter „Grantee‟) agree as set
forth herein.
Section I. The Authority shall grant funds to pay for expenses incurred by the Grantee under the terms and
conditions of this Agreement, in an amount not to exceed $ GRANT AMOUNT, unless the grant amount is
amended as provided herein.
Section II. The Grantee shall apply the grant funds to the Project and perform all of the work and other
obligations required by this Agreement.
Section III. Performance under this agreement begins (Date expenditures can start) and shall be completed
no later than INSERT COMPLETION DATE.
Section IV. The agreement consists of this page and the following:
Appendices Attachments/Forms (As required)
Appendix A: General Provisions
Appendix B: Standard Provisions
Appendix C: Grantee Proposal/Scope of
Work
Appendix D: Project Management &
Reporting Requirements
Appendix E: Project Budget &
Reimbursement Provisions
AMENDMENTS: Any amendments to this
Agreement must be signed by authorized
representatives of Grantee and the Authority
and should be listed here.
Attachment 1: Financial Report/Request for
Reimbursement Form
Attachment 2: Progress Report Form
Attachment 3: Other Funding Sources Agreement(s)
Attachment 4: Notice of Substantial Completion
Attachment 5: Notice of Project Closeout
Attachment 6: Waiver of Sovereign Immunity (if
required)
Grantee Authority
Project Manager
Executive Director or
Designee
Signature
Signature Signature
Printed Name and Title
[Pay-to Constituent]
Printed Name and Title
[Your Reference], Project Manager
Steve Haagenson,
AEA Executive Director
Date
Date Date
PROJECT NAME
Grant Agreement #
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Table of Contents
Grant No. [Buy-from Vendor No.]
AGREEMENT ...................................................................................................................................................... 1
APPENDIX A GENERAL PROVISIONS .............................................................................................................. 5
1. DEFINITIONS ............................................................................................................................................... 5
2. AUTHORITY SAVED HARMLESS ............................................................................................................... 5
3. WORKERS’ COMPENSATION INSURANCE ............................................................................................... 5
4. INSURANCE ................................................................................................................................................. 6
5. EQUAL EMPLOYMENT OPPORTUNITY (EEO) .......................................................................................... 6
6. PUBLIC PURPOSES ..................................................................................................................................... 6
7. OFFICIALS NOT TO BENEFIT..................................................................................................................... 6
8. GOVERNING LAW ...................................................................................................................................... 6
9. COMPLIANCE WITH APPLICABLE LAW AND FUNDING SOURCE REQUIREMENTS .............................. 6
10. SEVERABILITY ........................................................................................................................................... 7
11. NON-WAIVER .............................................................................................................................................. 7
12. INTEGRATION ............................................................................................................................................. 7
13. GRANTEE NOT AGENT OF AUTHORITY ................................................................................................... 7
14. DISPUTES .................................................................................................................................................... 7
15. TERMINATION ............................................................................................................................................ 7
16. TERMINATION DUE TO LACK OF FUNDING ............................................................................................. 8
17. NO ASSIGNMENT OR DELEGATION .......................................................................................................... 8
18. NO THIRD PARTY BENEFICIARIES ........................................................................................................... 8
19. NO ADDITIONAL WORK OR MATERIAL ................................................................................................... 8
20. CHANGES .................................................................................................................................................... 8
21. RIGHT TO WITHHOLD FUNDS ................................................................................................................... 8
22. REMISSION OF UNEXPENDED FUNDS ...................................................................................................... 9
23. TAX COMPLIANCE RESPONSIBILITIES OF GRANTEE ............................................................................. 9
24. LOBBYING ACTIVITIES .............................................................................................................................. 9
25. FINANCIAL MANAGEMENT AND ACCOUNTING ...................................................................................... 9
26. PROCUREMENT STANDARDS .................................................................................................................... 9
27. REPORTING REQUIREMENTS .................................................................................................................... 9
28. OWNERSHIP OF DOCUMENTS AND PRODUCTS ....................................................................................... 9
29. INSPECTIONS AND RETENTION OF RECORDS ....................................................................................... 10
30. AUDITS ...................................................................................................................................................... 10
31. LEGAL AUTHORITY ................................................................................................................................. 10
32. GRANT CLOSE OUT .................................................................................................................................. 10
APPENDIX B STANDARD PROVISIONS ......................................................................................................... 11
1. PROJECT FUNDING SOURCES.................................................................................................................. 11
2 GOVERNING LAWS .................................................................................................................................. 11
3. ELIGIBLE COSTS ....................................................................................................................................... 11
DENALI COMMISSION OR OTHER FEDERAL GRANTS ADMINISTERED BY THE AUTHORITY: ........................ 11
State Grants: ...................................................................................................................................................... 11
4. INSURANCE REQUIREMENTS (NEED TO ADJUST PER PROJECT REQUIREMENTS.) .......................... 12
5. SOVEREIGN IMMUNITY (IF REQUIRED). ................................................................................................ 12
6. DISPOSITION OF EQUIPMENT (FEDERAL REQUIREMENT) ................................................................... 13
APPENDIX B1 STANDARD PROVISIONS FOR GENERAL DESIGN & CONSTRUCTION GRANT..... 13
1. DECLARATION OF PUBLIC BENEFIT ...................................................................................................... 13
2. GRANTEE PROJECT MANAGER ............................................................................................................... 13
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3. APPROVAL TO PROCEED WITH NEXT PHASE ....................................................................................... 13
4. CONTRACTS FOR ENGINEERING SERVICES ........................................................................................... 14
5. SITE CONTROL ......................................................................................................................................... 14
6. PERMITS .................................................................................................................................................... 14
7. EXCLUSION OF EXISTING ENVIRONMENTAL HAZARDS ...................................................................... 14
8. ENVIRONMENTAL STANDARDS .............................................................................................................. 14
9. CURRENT PREVAILING RATES OF WAGE AND EMPLOYMENT PREFERENCE .. ERROR! BOOKMARK
NOT DEFINED.
10. CONSTRUCTION PLANS AND SPECIFICATIONS REVIEW ......... ERROR! BOOKMARK NOT DEFINED.
11. CONSTRUCTION CONTRACTOR INSURANCE AND BONDING .. ERROR! BOOKMARK NOT DEFINED.
12. POST CONSTRUCTION CERTIFICATION.................................................................................................. 15
13. OWNERSHIP OF FACILITIES .................................................................................................................... 15
14. OPERATION AND MAINTENANCE OF FACILITIES ................................................................................. 15
15. PERFORMANCE / OPERATION AND MAINTENANCE (O&M) REPORTING (FOR ALTERNATIVE
ENERGY PROJECTS ONLY, NEED TO KNOW FOR HOW LONG, HOW OFTEN, AND WHO PAYS FOR THIS) ...... 16
16. TARIFFS & RATES FOR USE OF GRANT-FUNDED ASSETS.................................................................... 16
17. GRANT-FUNDED ASSETS NOT INCLUDED WITH PCE ........................................................................... 16
APPENDIX B2 STANDARD PROVISIONS FOR AEA MANAGED PROJECTS MAY BE USED FOR
OTHER PASS-THRU ............................................................................................................................................... 16
1. AUTHORITY’S RESPONSIBILITIES .......................................................................................................... 16
2. FORCE ACCOUNT PAYROLL AND PROJECT COORDINATION .............................................................. 17
3. SUBSTANTIAL COMPLETION OF PROJECT ............................................................................................. 17
4. RIGHTS OF OTHER PARTIES .................................................................................................................... 18
5. DENALI COMMISSION APPROVAL .......................................................................................................... 18
6. ACKNOWLEDGEMENT OF PROJECT SUPPORT ....................................................................................... 18
APPENDIX C GRANTEE PROPOSAL/SCOPE OF WORK ............................................................................ 19
BASIC GRANT FORMAT: ....................................................................................................................................... 19
APPENDIX C-1 MODIFICATIONS TO GRANTEE’S PROPOSAL ............................................................... 20
APPENDIX D PROJECT MANAGEMENT & REPORTING REQUIREMENTS ......................................... 21
1. PROJECT MANAGEMENT ......................................................................................................................... 21
2. CONTACT PERSONS ................................................................................................................................. 21
3. MONTHLY PROGRESS AND FINANCIAL REPORTS ................................................................................ 21
3. QUARTERLY PROGRESS AND FINANCIAL REPORTS............................................................................. 22
4. DOCUMENTATION AND RECORD KEEPING ........................................................................................... 22
APPENDIX E PROJECT BUDGET & REIMBURSEMENT PROVISIONS ................................................... 23
1. ALLOWABLE COSTS (FOR STATE GRANTS ONLY; AS FEDERAL GRANTS WILL HAVE ALLOWABLE
COSTS DEFINED BY THE CFRS.) ........................................................................................................................... 23
a. Direct Labor & Benefits ........................................................................................................................... 23
b. Travel, Meals, or Per Diem ...................................................................................................................... 23
c. Equipment ................................................................................................................................................. 23
d. Supplies .................................................................................................................................................... 23
e. Contractual services ................................................................................................................................. 24
f. Construction Services ............................................................................................................................... 24
g. Other Direct Costs .................................................................................................................................... 24
2. SPECIFIC EXPENDITURES NOT ALLOWED (NOT APPLICABLE TO FEDERAL FUNDS) ........................ 24
3. MATCH ...................................................................................................................................................... 25
4. COST SHARE MATCH REQUIREMENTS .................................................................................................. 25
5. VALUING IN-KIND SUPPORT AS MATCH ............................................................................................... 25
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6. GRANT DISBURSEMENTS ........................................................................................................................ 26
7. WITHHOLDING OF GRANT FUNDS .......................................................................................................... 26
8. ADVANCE DISBURSEMENTS (IF ALLOWED) .......................................................................................... 27
9. UNEXPENDED GRANT FUNDS AND INTEREST EARNED (THIS CLAUSE MAYBE MODIFIED
DEPENDING ON THE SOURCE OF GRANT FUNDS.) ............................................................................................. 27
10. BUDGET FLEXIBILITY ................................................................. ERROR! BOOKMARK NOT DEFINED.
11. PROGRAM INCOME (FEDERAL PROJECT ISSUE) ................................................................................... 27
ATTACHMENT 1 FINANCIAL REPORT/REQUEST FOR REIMBURSEMENT FORM .......................... 28
ATTACHMENT 2 PROGRESS REPORT FORM ............................................................................................. 29
ATTACHMENT 3 OTHER FUNDING SOURCES AGREEMENT(S) ............................................................ 30
ATTACHMENT 4 NOTICE OF SUBSTANTIAL COMPLETION .................................................................. 31
ATTACHMENT 5 NOTICE OF PROJECT CLOSEOUT ................................................................................. 32
ATTACHMENT 6 WAIVER OF SOVEREIGN IMMUNITY (IF REQUIRED) ............................................. 33
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APPENDIX A GENERAL PROVISIONS
1. Definitions
In this Grant Agreement, attachments and amendments:
a) “Authority” means the Alaska Energy Authority, a public corporation of the State of
Alaska.
b) “Authorized Representatives” means those individuals or entities authorized by an entity
to act on its behalf, with delegated authority sufficient to accomplish the purposes for
which action is needed.
c) “Executive Director” means the Executive Director of the Authority or the Executive
Director‟s authorized representative.
d) “Matching contributions” means the cash, loan proceeds, in-kind labor, equipment, land,
other goods, materials, or services a grantee provides to satisfy any match requirements
of a grant or to complete the Project.
e) “Project” means [Posting Description] as defined in Appendix C (Scope of Grant) for
which funds have been made available.
f) “Project Manager” means the employee of the Authority responsible for assisting the
Grantee with technical aspects of the Project and is one of the Grantor‟s contacts for the
Grantee during all phases of the Project.
g) “State” means the State of Alaska.
OR
h) “Denali Commission” means the federal-state commission established under
42 USC 3121 and its successors or assigns.
2. Authority Saved Harmless
As a condition of this Grant, the Grantee agrees to defend, indemnify, and hold harmless the
Authority and the State of Alaska, and their agents, servants, contractors, and employees, from
and against any and all claims, demands, causes of action, actions, and liabilities arising out of,
or in any way connected with this grant or the project for which the grant is made, howsoever
caused, except to the extent that such claims, demands, causes of action, actions or liabilities
are the proximate result of the sole negligence or willful misconduct of the Authority or the State
of Alaska.
3. Workers’ Compensation Insurance
The Grantee shall provide and maintain Workers‟ Compensation Insurance as required by AS
23.30 for all employees engaged in work under this Grant Agreement. The Grantee shall
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require any contractor to provide and maintain Workers‟ Compensation Insurance for its
employees as required by AS 23.30.
4. Insurance
The Grantee is responsible for obtaining any necessary insurance and endorsements as
defined in Appendix B Standard Provisions.
5. Equal Employment Opportunity (EEO)
The Grantee may not discriminate against any employee or applicant for employment because
of race, religion, color, national origin, age, physical handicap, sex, marital status, changes in
marital status, pregnancy, or parenthood. The Grantee shall post in a conspicuous place,
available to employees and applicants for employment, a notice setting out the provisions of
this paragraph.
The Grantee shall state in all solicitations or advertisements for employees to work on Authority
funded projects, that it is an Equal Opportunity Employer (EEO) and that all qualified
applications will receive consideration for employment without regard to race, religion, color,
national origin, age, physical handicap, sex, marital status, changes in marital status,
pregnancy or parenthood.
The Grantee shall include the provisions of this EEO article in every contract relating to this
Grant Agreement and shall require the inclusion of these provisions in every agreement entered
into by any of its contractors, so that those provisions will be binding upon each contractor and
subcontractor.
6. Public Purposes
The Grantee agrees that the Project to which this Grant Agreement relates shall be dedicated
to public purposes and any project constructed or equipment or facilities acquired, shall be
owned and operated for the benefit of the general public. The Grantee shall spend monies
appropriated under this grant only for the purposes specified in the Grant Agreement. The
benefits of the Project shall be made available without regard to race, religion, color, national
origin, age, physical handicap, sex, marital status, changes in marital status, pregnancy or
parenthood.
7. Officials Not To Benefit
No member of or delegate to Congress or the Legislature, or officials or employees of the
Authority or Federal government may share any part of this agreement or any benefit to arise
from it.
8. Governing Law
This Grant Agreement is governed by the laws of the State of Alaska. Any civil action arising
from this Agreement shall be brought in the Superior Court for the Third Judicial District of the
State of Alaska at Anchorage.
9. Compliance with Applicable Law and Funding Source Requirements
The Grantee shall comply with all applicable local, state and federal statutes, regulations,
ordinances and codes, whether or not specifically mentioned herein. Refer to Appendix B
Standard Provisions for more specific requirements.
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10. Severability
If any section, paragraph, clause or provision of this Agreement is held invalid or unenforceable,
the remainder of this Agreement shall be unaffected and enforced to the fullest extent possible,
and the invalid or unenforceable provision shall be deemed replaced with a valid and
enforceable provision that is as similar as possible to such invalid or unenforceable provision.
11. Non-waiver
The failure of either party at any time to enforce a provision of this Agreement shall in no way
constitute a waiver of the provision, nor in any way affect the validity of this Agreement, or any
part hereof, or the right of such party thereafter to enforce each and every provision hereof.
12. Integration
This instrument and all appendices, amendments, and attachments hereto embody the entire
Agreement of the parties concerning the grant funds granted hereunder. There are no
promises, terms, conditions, or obligations regarding said funds other than those contained in
the documents described above; and such documents shall supersede all previous
communications, representations or agreements, either oral or written, between the parties
hereto. To the extent there is any conflict between the provisions of Appendix A and B the
Grantee‟s application or proposal, the provisions of Appendix A & B prevail.
13. Grantee Not Agent of Authority
The Grantee and any agents and employees of the Grantee act in an independent capacity and
are not officers or employees or agents of the Authority in the performance of this Grant
Agreement.
14. Disputes
Any dispute arising under this Grant Agreement which is not disposed of by mutual agreement
must be raised to the Executive Director and will be decided by the Executive Director or the
Executive Director‟s designee consistent with 3 AAC 108.910. The decision shall be in writing
and mailed or otherwise furnished to the Grantee. The decision of the Executive Director or
Designee is final and conclusive.
15. Termination
a) The Grantee shall have no rights to compensation or damages for termination
except as provided in this Section.
b) In addition to all other rights available under law, the Authority may terminate this
Agreement or stop work on the Project for the convenience of the Authority or for cause
upon ten (10) days written notice.
c) "Cause" for termination shall exist when the Grantee has failed to perform under this
Agreement, has provided incorrect or misleading information or has failed to provide
information which would have influenced the Authority's actions. In order for termination
to be for cause, the Grantee's failure to perform or the Grantee's provision of incorrect,
misleading, or omitted information must be material.
d) If this Agreement is terminated for cause, the Grantee shall be entitled to no
compensation. The Grantee shall reimburse the Authority for all grant funds expended
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under this Agreement by the Grantee or on the Grantee‟s behalf including interest
accrued from the date of disbursement. The Grantee shall also reimburse the Authority
for any costs incurred to collect funds subject to reimbursement, and for any damages
incurred by the Authority as a result of the Grantee‟s failure to perform or provision of
incorrect or misleading information. The Authority may require the Grantee to return to
the Authority some or all of the Project assets if this Agreement is terminated for cause.
e) If this Agreement is terminated at the sole request of the Authority for the sole
reason of its convenience, the Grantee is not required to reimburse the Authority for
funds expended prior to the date of termination. If the Grantee has incurred costs under
this agreement, the Grantee shall only be reimbursed by the Authority for eligible costs
the Grantee incurred prior to the date of termination of the Agreement. However, prior
to making any claim or demand for such reimbursement, the Grantee shall use its best
effort to reduce the amount of such reimbursement through any means legally available
to it. The Authority's reimbursement to the Grantee shall be limited to the encumbered,
unexpended amount of funds available under this Agreement.
16. Termination Due to Lack of Funding
In the event funding from the Authority, federal or other sources is withdrawn, reduced, or
limited in any way after the effective date of this agreement and prior to normal completion, the
Authority may terminate the agreement, reduce f unding, or re-negotiate subject to those new
funding conditions.
17. No Assignment or Delegation
The Grantee may not assign or delegate this Grant Agreement, or any part of it, or any right to
any of the money to be paid under it, except with the written consent of the Executive Director
or Designee.
18. No Third Party Beneficiaries
Except as otherwise specified in this agreement, no person is a third party beneficiary of this
Agreement and this Agreement creates no third party rights. Specifically, any person who is not
a party to this Agreement shall be precluded from bringing any action asserting the liability of a
party or asserting any right against a party to this Agreement, through the terms of this
Agreement. No person, other than a party to this Agreement, may bring any action based upon
this Agreement for personal injuries, property damages, or otherwise.
19. No Additional Work or Material
No claims will be allowed for additional work, materials, or equipment, not specifically
authorized in this Grant Agreement, which are performed or furnished by the Grantee.
20. Changes
Any changes which have been agreed to by both parties will be attached and made a part of
this Grant Agreement by use of a written Amendment. Any such Amendment must be dated
and signed by Authorized Representatives of the Authority and the Grantee.
21. Right to Withhold Funds
The Authority may withhold payments under this Grant Agreement for non-compliance with any
of the provisions of this Grant Agreement.
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22. Remission of Unexpended Funds
The Grantee shall return all unexpended grant monies to the Authority within 90 days of the
Project completion.
23. Tax Compliance Responsibilities of Grantee
The Grantee is responsible for determining applicable federal, state, and local tax
requirements, for complying with all applicable tax requirements, and for paying all applicable
taxes. The Authority may issue an IRS Form 1099 for Grant payments made. The Grantee
shall pay all federal, state and local taxes incurred by the Grantee and shall require the
payment of all applicable taxes by any contractor or any other persons in the performance of
this Grant Agreement.
24. Lobbying Activities
In accepting these funds, the Grantee agrees and assures that none of the funds will be used
for the purpose of lobbying activities before the United States Congress or Alaska Legislature.
No portion of these funds may be used for lobbying or propaganda purposes as prohibited in
AS 37.05.321, 18 U.S.C. 1913, 31 U.S.C. 1352, or other laws as applicable.
25. Financial Management and Accounting
The Grantee shall establish and maintain a financial management and accounting system that
conforms to generally accepted accounting principles. In addition, the accounting system must
keep separate all grant funds awarded under this grant agreement.
26. Procurement Standards
Grantees will follow competitive purchasing procedures that: 1) provide reasonable competitive
vendor selection for small dollar procurements; 2) provide for competitive bids or requests for
proposals for contracts and procurements greater than $100,000; 3) provide a justification
process for non-competitive procurements or contracts; 4) document the source selection
methods used for all contracts, equipment, or material transactions greater than $10,000; 5)
and comply with other procurement requirements as defined in Appendix B. Grantees who
have questions about their procurement procedures or a specific procurement should contact
the Authority‟s Grant Manager.
27. Reporting Requirements
The Grantee shall submit progress reports to the Authority according to the schedule
established in Appendix D of this Grant Agreement.
28. Ownership of Documents and Products
All designs, drawings, specifications, notes, artwork, computer programs, reports and other
work developed with grant funds in the performance of this agreement are public domain and
will be used by the Authority and/or public without notice or compensation to the Grantee. The
Grantee agrees not to assert any rights and not to establish any claim under the design patent
or copyright laws. Except as otherwise specifically agreed, and without limiting any Intellectual
Property requirements of a federal funding agency, the Authority shall have unlimited rights to
use and to disseminate any data produced or delivered in the performance of the contract.
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29. Inspections and Retention of Records
The Grantee shall keep a file for financial, progress and other records relating to the
performance of the grant agreement. The file must be retained for a period of four years from
the fully executed close out of the grant agreement or until final resolution of any audit findings
claim or litigation related to the grant. The Authority may inspect, in the manner and at
reasonable times it considers appropriate, records and activities under this Grant Agreement.
30. Audits (Choose State of Federal)
This Grant Agreement is subject to 2 AAC 45.010 single audit regulations for State Grants.
The Grantee must comply with all provisions of 2 AAC 45.010 and any additional audit
requirements outlined in Appendix D.
OR
This Grant Agreement is subject to OMB Circular A-133 Audits of States, Local Governments,
and Non-Profit Organizations. The Grantee must comply with all provisions of OMB Circular A-
133 and any additional audit requirements outlined in Appendix D.
31. Legal Authority
The Grantee certifies that it possesses legal authority to accept grant funds under the State of
Alaska and to execute the Project described in this Grant Agreement by signing the Grant
Agreement document. The Grantee‟s relation to the Authority and the State of Alaska shall be
at all times as an independent Grantee.
32. Grant Close out
Upon completion of the all work or expenditure of all grant funds related to the Project the
Authority will provide written notice to the Grantee that the Grant will be closed out with an
effective date that the grant will be closed out.
The Grant will be considered closed out by the effective date in the notice unless the Grantee
provides written notice to the Project manager within 30 days after receipt of notice of Grant
close out that they disagree.
No additional reimbursements will be made to the Grantee after the grant is closed out.
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Appendix B Standard Provisions
1. Grant Funding Sources
This Grant is subject to appropriation and availability of funds as listed below:
(List funding sources and amounts from each source)
Grantee acknowledges that if additional grant funds are made available they are subject to the
terms and conditions of this Agreement and any amendment. Funds from other federal
sources cannot be counted as match or cost share. – this sentence is applicable to
federal funds only.
2. Governing Laws
The Grantee shall perform all aspects of this Project in compliance with all applicable state,
federal and local laws:
(List specific CFRs or Federal Provisions or funding Source Policies that apply. The order of
precedence for federal awards that flow through to Grantee is: 1) The federal statute
authorizing the grant program, 2) Federal Program regulations and administrative regulations
[including OMB circulars incorporated by reference], 3) Federal Policy or procedural
requirements specified by the federal agency)
3. Eligible Costs
The Authority, as Grantor, shall have sole discretion to determine which project costs are
eligible to be paid from Grant monies under this agreement. Only direct costs of the Project are
eligible for payment or reimbursement from grant funds. Indirect costs are not allowed under
this grant unless approved by the Authority in Appendix E.
The eligible costs will be determined in accordance with one or more of the following provisions
that are incorporated by reference in this grant agreement:
Denali Commission or other federal grants administered by the Authority:
Costs are determined per the federal requirements contained in the grant to the Authority.
(Usually this will be 2 C.F.R. Part 225 [formerly OMB Circular A-87] www.whitehouse.gov/omb
or similar federal requirements.)
Applicable administrative requirements may depend on the legal structure of the Grantee.
Title 48 of the Code of Federal Regulations “Federal Acquisition Regulations System”, Part 31,
“Contract Cost Principles and Procedures”
State Grants:
(refer to any State Statues or Regulations that may be required.)
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4. Insurance Requirements (Need to adjust per project Requirements.)
The following insurance requirements are in effect for this Project. Grant funds will be used to
procure Project related insurance and the Authority will work with the Grantee to ensure that
these requirements are met. Insurance will be obtained with an insurance carrier or carriers
covering injury to persons and property suffered by the State of Alaska or by a third party as a
result of operations under this grant. The insurance shall provide protection against injuries to
all employees of the Project engaged in work under this grant. All insurance policies shall be
issued by insurers that (i) are authorized to transact the business of insurance in the State of
Alaska under AS 21 and (ii) have a Bests Rating of at least A-VII and be required to notify the
Authority, in writing, at least 30 days before cancellation of any coverage or reduction in any
limits of liability.
Where specific limits and coverage are shown, it is understood that they shall be the minimum
acceptable and shall not limit the Grantee‟s indemnity responsibility. However, costs for any
coverage in excess of specific limits of this agreement are the responsibility of the Grantee and
may not be charged to this grant agreement.
The following policies of insurance shall be maintained with the specified minimum coverage
and limits in force at all times during the performance work under this Project:
1. Workers‟ Compensation: as required by AS 23.30.045, for all employees engaged in
work under this Project. The coverage shall include:
a. Waiver of subrogation against the State and Employer‟s Liability Protection at
$500,000 each accident / each employee and $500,000 policy limit;
2. Commercial General Liability: on an occurrence policy form covering all operations
under this Project with combined single limits not less than:
a. $1,000,000 Each Occurrence;
b. $1,000,000 Personal Injury;
c. $1,000,000 General Aggregate; and
d. $1,000,000 Products-completed Operations Aggregate.
The State of Alaska shall be named as an individual insured.
3. Automobile Liability: covering all vehicles used in Project work, with combined single
limits no less than $1,000,000 each occurrence.
All of the above insurance coverage shall be considered to be primary and non-contributory to
any other insurance carried by the State of Alaska, whether self-insurance or otherwise.
The Authority‟s acceptance of deficient evidence of insurance does not constitute a waiver of
Grant requirements.
5. Sovereign Immunity (If required).
By execution of this grant agreement, the Grantee irrevocably waives any sovereign immunity
which it may possess, and consents to suit against itself or its of ficials, under the laws of the
State of Alaska, in the courts of the State of Alaska as to all causes of action by the Authority
arising out of or in connection with this agreement. If the Grantee is an entity which possesses
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sovereign immunity, it shall provide the Authority with a resolution of the Grantee‟s governing
body waiving sovereign immunity, and such resolution shall be incorporated into this agreement
as an Attachment. (See Attachment 5)
6. Disposition of Equipment (Federal Requirement)
Equipment purchased in part or wholly with federal funds shall be used by the Grantee in the
Project for which it was acquired as long as needed, whether or not the Project or program
continues to be supported by federal funds. When no longer needed for the original program or
Project, the equipment may be used in other activities currently or previously supported by a
Federal agency. The Grantee will not use the equipment to provide services for a fee on the
grant-funded Project.
The Grantee shall be responsible for the operation and maintenance of equipment acquired
with this grant. The Grantee must keep records which will include a description, serial number,
source and title, cost and percentage of federal participation in cost, location, use and
condition, and sale price and date of disposal. Disposition of equipment with a current per-unit
fair market value of less than $5,000 may be retained, sold or otherwise disposed of with no
further obligation.
Appendix B1 Standard Provisions for General Design & Construction Grant
1. Declaration of Public Benefit
The parties acknowledge and agree that the Project shall be constructed, owned and operated
for the benefit of the general public and will not deny any person use and/or benefit of Project
facilities due to race, religion, color, national origin, age, physical handicap, sex, marital status,
changes in marital status, pregnancy or parenthood.
2. Grantee Project Manager
For construction projects, the Grantee will contract or hire competent persons to manage all
phases of the Project subject to approval of the Authority. Work at a minimum will include;
management of Grantee‟s labor for the project, engineering firms and consultants,
procurement, management of construction contractors, selection of equipment, review of plans
and specifications, on-site inspections and review and approval of work, and other duties to
ensure that the completed work conforms with the requirements of the grant and the
construction documents.
If the Grantee fails to provide adequate project management the Authority may terminate the
Grant or assume project management responsibilities with the concurrence of the Grantee.
Costs for a Project Manager must be reasonable to be considered an eligible grant expense.
3. Approval to Proceed With Next Phase
A grant award may be for one or more phases of a project. The grantee must achieve
substantial completion of work or of designated construction milestones and receive approval
from the Authority prior to proceeding to the next phase of work.
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4. Contracts for Engineering Services
In the event the Grantee contracts for engineering services, the Grantee will require that the
engineering firm certify that it is authorized to do business in the State of Alaska and provide
proof of licensing and insurance.
5. Site Control
If the grant Project involves the occupancy and use of real property, the Grantee assures that it
has the legal right to occupy and use such real property for the purposes of the grant, and
further that there is legal access to such property. The Grantee is responsible for securing the
real property interests necessary for the construction and operation of the Project, through
ownership, leasehold, easement, or otherwise, and for providing evidence satisfactory to the
Authority that it has secured these real property interests.
6. Permits
It is the responsibility of the Grantee to identify and ensure that all permits required for the
construction and operation of this Project by the Federal, State, or Local governments have
been obtained unless otherwise stated in Appendix C. These permits may include, but are not
limited to, Corps of Engineers‟ Wetlands Permit, State Historic Preservation Office, State Fire
Marshal approval, rights-of-way for the pipelines, and site control, including any necessary
Coastal Zone Management coordination through the Office of Project Management and
Permitting (DNR).
7. Exclusion of Existing Environmental Hazards
Grant funds for investigation, removal, decommissioning, or remediation of existing
environmental contamination or hazards, are not allowed unless specifically specified and
approved in Appendix C.
8. Environmental Standards
The Grantee will comply with applicable environmental standards, including without limitation
applicable laws for the prevention of pollution, management of hazardous waste, and evaluation
of environmental impacts.
9. Current Prevailing Rates of Wage and Employment Preference
Construction projects may require certain grantees to include the requirements for Davis Bacon
and Little Davis Bacon when contracting for construction services. This requires contractors to
pay minimum rates of pay for specific classes of workers and provide certified payrolls to the
State Department of Labor. The current wage rates can be found at the following web sites:
The Federal wage rates at http://www.wdol.gov/
The State wage rates at http://www.labor.state.ak.us/lss/pamp600.htm
If federal funding sources require federal Davis Bacon compliance, the Grantee must use both
the Federal and State wage scale and the contractor is required to pay the higher of the State
or Federal wage scale. When only State Funds are used that requires “Little Davis Bacon,” the
Grantee is only required to follow the State Rate schedule.
PROJECT NAME
Grant Agreement #
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For projects that are only State funded, contractors are also required to use local residents
where they are available and qualified in accordance with AS 36.10.150-180, and 8 AAC 30.064
- 088.
The Grantee is responsible for identifying any other sources of project funds and for ensuring
compliance with applicable wage scales for all sources of project funding. If a Grantee believes
they or their contractors may be exempt from these requirements, they should contact the State
of Alaska Department of Labor, Division of Wage and Hour, for a determination and forward a
copy of that determination to the Authority‟s Grant Administrator.
10. Construction Plans and Specifications Review
Prior to public notice of bidding a construction project the Grantee will provide the plans and
specifications to the Authority for review. Concurrence that the plans and specifications are
consistent with the grant award must be received before grant funds will be released for
construction related costs.
11. Construction Insurance and Bonding
When the value of a grant construction project is anticipated to be greater than $100,000, prior
to beginning construction, the Grantee or Grantee‟s contractor(s) must provide the Authority
proof of adequate insurance and either a payment and performance bond, as may be required
by AS 36.25.010, a surety in form and substance acceptable to the Authority, or some other
guarantee or assurance acceptable to the Authority that the Grantee or the Grantee‟s
contractor has the capacity, qualifications, and financial resources necessary to complete
construction of the project as proposed in the grant or separate construction contract funded by
this grant.
12. Post Construction Certification
Upon completion of construction the Grantee will submit a final report that includes:
Certification that all work is completed in accordance with the grant agreement;
That all cost claimed are eligible costs and represent work completed on the Project;
Identification of any construction issues; and,
As-built drawings.
13. Ownership of Facilities
The Grantee shall assume all liabilities arising from the ownership and operation of the Project.
Grantee will not sell, transfer, encumber, or dispose of any of its interest in the facilities
constructed with this grant funding during the economic life of the Project without prior written
approval of the Authority.
14. Operation and Maintenance of Facilities
The Grantee is required to maintain and operate the facilities defined in Appendix C of this
agreement for the useful life of the facility or the specific period of time designated herein.
In the event that the Grantee is no longer operating the facilities for the intended purposes the
Authority may require the Grantee to reimburse the Authority an amount based on the total
contribution of the Authority, the value of the assets, and the terms and conditions of this
PROJECT NAME
Grant Agreement #
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agreement. The Authority may require that the assets acquired under this agreement be sold
and the proceeds returned to the Authority.
15. Performance/Operation and Maintenance (O&M) Reporting
If the grant is for Project construction, the Grantee must provide the Authority with a
Performance/O&M Report annually for five years after Project completion. The Performance/
O&M Report must include: (1) a detailed description of Project operations and maintenance
activities and issues; and (2) a detailed description of Project performance, including energy
output, estimated fuel savings resulting from the operation of the Project, and any other
relevant measures of Project performance reasonably requested by the Authority, a description
of repairs and modifications to the Project, and recommendations for improvements for similar
future projects.
The Authority may take into account the Grantee‟s failure to provide the required annual
Performance/O&M Report in evaluating future applications from the Grantee for grant funds.
The Authority encourages grantees to provide annual Performance/O&M reports for the life of
the Project, and may consider the Grantee‟s voluntary submittal of annual Performance/O&M
reports beyond the first five years in evaluating future applications from the Grantee for grant
funds.
16. Tariffs & Rates for Use of Grant-Funded Assets
Rates for power provided as a result of generation or transmission facilities built with grant
funds may be subject to review and approval by the Regulatory Commission of Alaska (RCA),
or if the rates are not subject to RCA review and approval, they may be subject to review and
approval by the Authority to ensure reasonable and appropriate public benefit from the
ownership and operation of the Project.
17. Grant-funded Assets Not Included with PCE
The Grantee agrees that it will not include the value of facilities, equipment, services, or other
benefits received under this grant as expenses under the Power Cost Equalization Program or
as expenses on which wholesale or retail rates or any other energy tariffs are based.
Appendix B2 Standard Provisions for AEA Managed Projects May be used for
other pass-thru
1. Authority’s Responsibilities
In consideration for this Grant, Grantee hereby appoints the Authority to act as its agent for the
design, construction, management, and administration of the Project.
(Grant document may need to specify specific tasks AEA is assuming responsibility for. Make
sure costs in grant are sufficient to cover AEA‟s responsibilities.)
As Agent of the Grantee the Authority will be responsible for all matters related to the Project
design and construction in accordance with this Grant Agreement, including but not limited to
development and approval of plans and specifications; procurement of all materials and
services, hiring force account labor, and accounting and reporting all expenditures as required
PROJECT NAME
Grant Agreement #
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by the Denali Commission, provided that the Authority will not be responsible for any matters
not required by this Grant Agreement.
If other funding sources for the Project require the Authority to assume additional duties as the
agent of the Grantee, then those requirements will be identified and the duties will be assumed
in a separate agreement which will be included as an Attachment to this Grant.
The Grantee is responsible for monitoring the Project work to the extent necessary for the
Grantee to determine that the work is proceeding satisfactorily and so that the Grantee can
perform its responsibilities pertaining to the Project and operate and maintain the Project after
Project completion.
The Grantee will raise with the Authority promptly any concerns or issues it may have regarding
the Project, and if those concerns or issues are not satisfactorily resolved the Grantee will
promptly give written notice with a detailed description of the concerns or issues to the
Authority‟s Project Manager.
The Authority may engage an accounting firm to provide payroll services for the Project. If so
engaged, the accounting firm may process payroll and per diem checks, make the required
payroll tax payments, perform all required payroll tax and other reporting, and compute worker‟s
compensation amounts payable by project as defined in their contract, and perform any other
payroll services that may be required for the Project.
2. Force Account Payroll and Project Coordination
The Grantee will assist the Authority in obtaining qualified local labor for the Project and will
provide necessary local administration assistance, including recommending qualified local
personnel; assisting in obtaining necessary personnel information; assisting in obtaining
housing for nonresident workers; facilitating communications between the Authority, the
community and local employees; and serving as a liaison between the Authority and the
community.
3. Substantial Completion of Project
Upon substantial completion of the Project, the Authority will issue a Notice of Substantial
Completion and identify any outstanding work items. When the Notice is issued, the Grantee
assumes all responsibility associated with operating and maintaining the Project, except as
specifically provided otherwise herein or by separate agreement executed by the Authority and
the Grantee.
The Grantee may disagree with the substantial completion determination by providing written
notice to the Project Manager within 30 days after receipt of the Notice of Substantial
Completion.
The Grantee‟s written objections disagreeing with the Notice of Substantial Completion must
detail the reasons the Grantee believes the Notice should not be issued. Further, the Grantee
must explain what the Grantee expects should be done so the Notice can be issued, and when
the additional issues identified can be completed or resolved. The Authority will follow-up within
60 days, letting the Grantee know if the objections have been accepted, if the Notice of
Substantial Completion stands, or, if the Notice of Substantial Completion is modified.
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Grant Agreement #
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4. Rights of Other Parties
The parties agree that the Denali Commission and any successor is a third party beneficiary of
the Grantees obligations in Appendix B1, No. 14 (Operation and Maintenance of Facilities),
Appendix A, No. 29 (Inspections and Retention of Records), Appendix A, No. 9 (Compliance
with Applicable Law and Funding Source Requirements), and Appendix A, No. 6 (Public
Purposes); otherwise, no person is a third party beneficiary of this Agreement and this
Agreement creates no third party rights. Specifically, any person who is not a party to this
Agreement shall be precluded from bringing any action asserting liability of a party or asserting
any right against a party to this Agreement, through the terms of this Agreement. No person,
other than a party to this Agreement, may bring any action based upon this Agreement for
personal injuries, property damages, or otherwise.
5. Denali Commission Approval
These responsibilities may not be altered or transferred without the prior written approval of the
Denali Commission.
6. Acknowledgement of Project Support
For all construction projects, the Grantee shall include an acknowledgement of the
Government‟s support for the project(s) developed under this Award. The Grantee shall display
a sign that:
1. Has the Denali Commission logo displayed on the upper right-hand quadrant;
2. States the following: “This project was financed by the Denali Commission and its
partners (list the name of the funding partners)”;
3. Shows the logo of each partner in the lower right-hand quadrant.
The cost of this sign shall be paid out of the project funding received by the Grantee from the
Denali Commission. Final approval of signage material and placement of sign must be
obtained from the Commission Project Manager.
For all non-construction projects, the Grantee shall include an acknowledgement of the
Government‟s support for the project(s) developed under this Award. Acknowledgement shall
include:
1. The Denali Commission logo and the logo of each partner;
2. The following statement: “This project was financed by the Denali Commission and its
partners (list the name of the funding partners)”.
The format for acknowledgement of the Government‟s support for non-construction awards will
vary with each award and must be agreed upon between the Award recipient and the Grant
Manager. Costs associated with this requirement shall be paid out of the project funding
received by the Grantee from the Denali Commission.
PROJECT NAME
Grant Agreement #
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Appendix C Grantee Proposal/Scope of work
This section should, at a minimum, include:
Scope or tasks the Grantee will complete including who will be doing work
Performance standards or specific requirements to be met
Schedule of when tasks will be done
A Budget – Similar to what’s listed below including match requirements.
If the Grantee’s Proposal includes all these elements and is accepted in full, it
may be inserted here. If the Authority does not accept the Grantee’s proposal in
full and requires certain changes, those changes should be clearly indicated.
Basic Grant Format:
1. Description of Project and Scope of Work, including specific Milestones. A business plan
must be one of the significant milestones for Denali Commission grants.
2. Project Funding Source(s)
3. Grant Disbursement and Reporting Requirements
4. Eligible Costs
5. Grantee‟s Responsibilities after Project Completion
PROJECT NAME
Grant Agreement #
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Appendix C-1 Modifications to Grantee’s Proposal
If the project was not funded for the full amount initially requested, or if any other changes to
the Grantee‟s proposal are required, identify any changes, deletions, addition, or amendments
made to the original grant application. These should be reflected in the budget below.
PROJECT NAME
Grant Agreement #
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Appendix D Project Management & Reporting Requirements
1. Project Management
The Grantee will notify the Authority immediately of any significant organizational changes
during the term of the grant, including changes in key personnel or tax status, any unforese en
problem or project delay that may cause a change to the work plan or budget or that may
otherwise affect the Grantee‟s ability to perform its commitments under this Grant Agreement.
Any unreported or unapproved changes to the work plan or budget evident in reports may result
in an amendment being required, costs disallowed, suspension or termination of the grant as
described in Appendix A.
2. Contact Persons
For the Grantee For The Authority
Grant Manager
[Pay-to Constituent]
[Address]
[City], [ZIP Code] [Country Code]
Email & Phone
Grant Manager
Butch White, Grants Administrator
813 W. Northern Lights Blvd.
Anchorage, Alaska 99503
bwhite@aidea.org
(907) 771-3052
Project Manager
[Pay-to Constituent]
[Address]
[City], [ZIP Code] [Country Code]
Email & Phone
Project Manager
[Your Reference]
813 W. Northern Lights Blvd.
Anchorage, Alaska 99503
Email
Phone
3. Monthly Progress and Financial Reports
The Grantee will provide monthly status reports by email (or other method allowed by the
Authority, if email is not available) to the Authority‟s Project Manager. These reports are due
starting the first full month after the award of the grant. This report must update the Authority
on the project‟s progress, regulatory and compliance issues, possible delays, and grant
expenditures during the month. These Monthly Progress Reports must summarize, in one or
two pages, the progress made on grant tasks during the month and identify any difficulties in
completing tasks or meeting goals or deadlines. The Grantee must also include with the report
copies of any work products due to the Authority during this period.
Reports are considered late five (5) days after the due date. No further payments will be made
without submission and approval of required reports. Work completed after the twenty-day
period when required reports have not been submitted is at the Grantee‟s risk, and costs
incurred may be disallowed. Repeated failure to submit reports in a timely manner could result
in suspension or termination of the grant.
PROJECT NAME
Grant Agreement #
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All reports and deliverables required in this agreement must have been submitted and approved
by the Authority prior to the final payment being released.
OR
(Project Manager and Grant Manager need to determine which amount of reporting is
appropriate for the Grantee.)
3. Quarterly Progress and Financial Reports
The Grantee will provide quarterly status reports by email (or other method allowed by the
Authority, if email is not available) to the Authority‟s Project Manager. Reports are due January
15th; April 15th; July 15th, and; October 15th of each year the grant is in place. If the 15th is a
weekend or holiday, reports are due the following business day.
This report must update the Authority on the Project‟s progress, regulatory and compliance
issues, possible delays, and grant expenditures during the quarter. These Quarterly Progress
Reports must summarize, in one or two pages, the progress made on grant tasks during the
quarter and identify any difficulties in completing tasks or meeting goals or deadlines. The
Grantee must also include with the report copies of any work products due to the Authority
during this period.
Reports are considered late five (5) days after the due date. No further payments will be made
without submission and approval of required reports. Work completed after the twenty-day
period when required reports have not been submitted is at the Grantee‟s risk, and costs
incurred may be disallowed. Repeated failure to submit reports in a timely manner could result
in suspension or termination of the grant.
All reports and deliverables required in this agreement must have been submitted and approved
by the Authority prior to the final payment being released.
OR
if acting as an agent of the Grantee – We’ll need to specify AEA reporting Requirements.
4. Documentation and Record Keeping
The Grantee shall maintain the following in their files:
Grant application,
Grant agreement and any amendments,
All written correspondence or copies of emails relating to the Grant,
Reports, including any consultant work products,
A separate accounting of grant income and expenditures,
Supporting documentation for the expenditures charged to the grant (including
supporting documentation for all required matching contributions).
The Authority and any authorized federal representative may inspect, in the manner and at any
reasonable time either considers appropriate, the Grantee‟s facilities, records, and activities
funded by this Grant Agreement.
PROJECT NAME
Grant Agreement #
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Appendix E Project Budget & Reimbursement Provisions
1. Allowable Costs (For State grants only; as federal grants will have allowable
costs defined by the CFRs.)
Insert “Examples of” for federal grants. Allowable costs under this grant include all reasonable
and ordinary costs for direct labor & benefits, travel, equipment, supplies, contractual services,
construction services, and other direct costs identified and approved in the Project budget that
are necessary for and incurred as a direct result of the Project and consistent with the
requirements noted in B.3 Eligible Costs.
A cost is reasonable and ordinary if, in its nature and amount, it does not exceed that which
would be incurred by a prudent person under the circumstances prevailing at the time the
decision was made to incur the costs.
Allowable costs are only those costs that are directly related to activities authorized by the
Grant Agreement and necessary for the Project. The categories of costs and additional limits
or restrictions are listed below:
a. Direct Labor & Benefits
Include salaries, wages, and employee benefits of the Grantee‟s employees for that portion
of those costs attributable to the time actually devoted by each employee to, and necessary
for the Project. Direct labor costs do not include bonuses, stock options, other payments
above base compensation and employee benefits, severance payments or other termination
allowances paid to the Grantee‟s employees.
b. Travel, Meals, or Per Diem
Include reasonable travel expenses necessary for the Project. These include necessary
transportation and meal expenses or per diem of Grantee employees for which expenses
the employees are reimbursed under the Grantee‟s standard written operating practice for
travel and per diem or the current State of Alaska Administrative Manual for employee
travel.
c. Equipment
Include costs of acquiring, transporting, leasing, installing, operating, and maintaining
equipment necessary for the Project, including sales and use taxes.
Subject to prior approval of the Authority‟s Project Manager, costs or expenses necessary to
repair or replace equipment damage or losses incurred in performance of work under the
grant may be allowed. However, damage or losses that result from the Grantee‟s
employees, officer‟s, or contractor‟s gross negligence, willful misconduct, or criminal
conduct will not be allowed.
d. Supplies
Include costs of material, office expenses, communications, computers, and supplies
purchased or leased by the Grantee necessary for the Project.
PROJECT NAME
Grant Agreement #
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e. Contractual services
Include the Grantee‟s cost of contract services necessary for the Project. Services may
include costs of contract feasibility studies, project management services, engineering and
design, environmental studies, field studies, and surveys for the project as well as costs
incurred to comply with ecological, environmental, and health and safety laws.
f. Construction Services
For construction projects this includes the Grantee‟s cost for construction contracts, labor,
equipment, materials, insurance, bonding, and transportation necessary for the Project.
Work performed by the Grantee‟s employees during construction may be budgeted under
direct labor and benefits. Contracted project management or engineering may be budgeted
under contractual services and major equipment purchases made by the Grantee may be
budgeted under equipment.
g. Other Direct Costs
In addition to the above the following expenses necessary for the Project may be allowed.
Net insurance premiums paid for insurance required for the grant Project;
Costs of permits and licenses for the grant Project;
Non-litigation legal costs for the Project directly relating to the activities; in this
paragraph, “non-litigation legal costs” includes expenses for the Grantee‟s legal staff
and outside legal counsel performing non-litigation legal services;
Office lease/rental payments;
Other direct costs for the Project directly relating to the activities and identified in the
grant documents; and/or
Land or other real property or reasonable and ordinary costs related to interests in land
including easements, right-of-ways, or other defined interests.
2. Specific Expenditures not allowed (not applicable to Federal funds)
Ineligible expenditures include costs for overhead, lobbying, entertainment , alcohol, litigation,
payments for civil or criminal restitution, judgments, interest on judgments, penalties, fines,
costs not necessary for and directly related to the grant Project, or any costs incurred before
the beginning date of the grant as indicated on the signature page.
Overhead costs described in this section include:
salaries, wages, applicable employee benefits, and business-related expenses of the
Grantee‟s employees performing functions not directly related to the grant Project;
office and other expenses not directly related to the grant Project; and
costs and expenses of administration, accounting, human resources, training, property
and income taxes, entertainment, self-insurance, and warehousing.
PROJECT NAME
Grant Agreement #
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3. Match
The Grantee is required to provide $________ or %________ of the total approved grant
Project budget in match for this grant Project.
Match based on a percentage of total Project budget means that the Grantee will contribute a
percentage of cash or in-kind support based on the total Project budget. For example, if the
total projected Project costs are $60,000, and the Grantee’s required match is 20% of the
Project costs, the Grantee would be required to provide $12,000; ($60,000 x .2 =
$12,000). Therefore, the grant in this example would be for $48,000.
At least___% of the matching funds must come from local sources, which can be loans to be
repaid by the applicant, or local cash contributions.
If the grant amount is changed, the Grantee will be required to provide an equivalent match of
___% of the total project.
4. Cost Share Match Requirements
Cost sharing or matching is that portion of the Project costs not borne by the Authority. The
Authority will accept all contributions, including cash and in-kind, as part of the Grantees‟ cost
sharing or matching when such contributions meet the following criteria:
Are provided for in the Project budget;
Are verifiable from the Grantee‟s records;
Are not included as contributions for another state or federally assisted project or
program; (The same funds can‟t be counted as match for more than one program.)
Are necessary and reasonable for proper and efficient accomplishment of the Project or
program objectives;
Are allowable costs;
Are not paid by the State or federal government under another award, except for
authorized by the State or federal statute to be used for cost sharing or matching;
Must be incurred within the grant eligible time period.
5. Valuing In-Kind Support as Match
If the Grantee chooses to use in-kind support as some or its entire match, the values of those
contributions must be approved by the Authority at the time the budget is approved. The values
will be determined as follows:
The value of real property will be the current fair market value as determined by an
independent third party or a valuation that is mutually agreed to by the Authority and the
Grantee and approved in the grant budget.
The value assessed to Grantee equipment or supplies will not exceed the fair market
value of the equipment or supplies at the time the grant is approved or amended.
Equipment usage will be valued based on approved usage rates that are determined in
accordance with the usual accounting policies of the recipient or the rates for equipment
PROJECT NAME
Grant Agreement #
Page 26 of 34
that would be charged if procured through a competitive process. Rates paid will not
exceed the fair market value of the equipment if purchased.
Rates for donated personal services will be based on rates paid for similar work and skill
level in the recipient‟s organization. If the required skills are not found in the recipient
organization, rates will be based on rates paid for similar work in the labor market.
Fringe benefits that are reasonable, allowable, and allocable may be included in the
valuation.
Transportation and lodging provided by the Grantee for non-local labor will not exceed
the commercial rates that may be available within the community or region.
6. Grant Disbursements
The Grantee must request disbursement of grant funds in the form and format required by the
Authority with appropriate back-up documentation and certifications. (See Attachment 1)
The back-up documentation must demonstrate the total costs incurred are allowable, and
reflect the amount being billed. Documentation must include:
A summary of direct labor costs supported by timesheets or other valid time record to
document proof of payment
Travel and per diem reimbursement documentation
Contractor or vendor pay requests
Invoices
Payment of grant funds will be subject to the Grantee complying with its matching contribution
requirements of the Grant.
Payment of grant funds will be made by the Authority to the Grantee within 30 days of receipt of
a properly completed, supported, and certified Reimbursement Request (See Attachment 1).
7. Withholding of Grant Funds
If, upon review of the monthly billings, the Authority discovers errors or omissions in the billings
it will notify the Grantee within thirty (30) days of receipt of the billing. Payment for the portion
of billings for which there is an error or omission may be withheld pending clarification by
Grantee.
Grant funds may be withheld for the following reasons:
The Grantee fails to provide adequate back-up documentation.
The Authority determines that a specific expense is not allowed under the grant.
The Grantee‟s matching contribution requirements are not met.
Up to 10% of the Authority‟s contribution of grant funds may be retained by the Authority until
the Project is completed and all required final documentation and reports are received and
accepted by the Authority.
PROJECT NAME
Grant Agreement #
Page 27 of 34
8. Advance Disbursements (If allowed)
In most instances, payments to a Grantee will be made on a cost reimbursable basis. If the
Authority determines that cost reimbursement will significantly inhibit the Grantee‟s abilit y to
perform the Project and determines that an advance is in the public interest, the Authority may
recommend an advance to the Grantee of an amount not to exceed a projected thirty (30) day
cash need, or twenty percent (20%) of the grant amount, whichever amount is less.
Before the Authority will issue an advance, the Grantee must provide in writing, and the
Authority must approve a “Request for Advance Payment” form which includes:
a. justification of the need for the advance,
b. documentation of anticipated line item costs associated with the advance.
All advances will be recovered with the Grantee‟s next Financial/Progress Report form. Should
earned payments during the terms of this Grant Agreement be insufficient to recover the full
amount of the advance, the Grantee will repay the unrecovered amount to the Authority when
requested to do so by the Authority, or at termination of the Grant Agreement.
9. Unexpended Grant Funds and Interest Earned (This clause maybe modified
depending on the source of grant funds.)
Any grant funds not expended under this agreement and any interest accruing on the grant
funds belong to the Authority and shall be returned to the Authority.
10. Budget Adjustments and Changes
When a Grantee faces increased unbudgeted costs, the grantee should contact the Authority‟s
Project Manager. Budget adjustments cannot increase the grant award amount. Cost
overruns that may require reduced scope of work will require Authority approval and an
amendment to the grant. If a budget adjustment or other changes indicate to the Authority‟s
Project Manager that the project can‟t be completed as currently planned and budgeted for, the
Project Manager will not approve the release of additional grant funds until the grantee provides
sufficient information on how the grantee intends to complete the revised project.
Budget Adjustments
The Grantee shall identify budget changes on its Financial Reports submitted to the Authority.
At least quarterly, the Authority will compare actual costs to budgeted distributions based on the
Financial Report/Request for Reimbursement form. Costs charged to grant funds must reflect
adjustments made as a result of the activity actually performed. The budget estimates or other
distribution percentages must be revised at least quarterly, if necessary, to reflect changed
circumstances.
11. Program Income (Federal Project Issue)
Program income earned during the award period shall be retained by the Grantee and added to
the funds committed to the award and used for the purpose and under the conditions applicable
to the use of award funds.
PROJECT NAME
Grant Agreement #
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Attachment 1 Financial Report/Request for Reimbursement Form
Grantee: [Name] [Name 2] Project: [Posting Description]
Period: to Grant Number: [Buy-from Vendor No.]
BUDGET SUMMARY
A B C D = B + C E = A - D
TOTAL GRANT
BUDGET
PRIOR
EXPENDITURES
EXPENDITURES
THIS PERIOD
TOTAL
EXPENDITURES
GRANT
BALANCE
BY TASK OR MILESTONE
TOTAL
BY BUDGET CATEGORIES
Direct Labor and Benefits
Travel
Equipment
Materials & Supplies
Contractual Services
Construction Services
Other
TOTAL
BY FUND SOURCES
Grant Funds
Grantee Match – Cash
Grantee Match – In-Kind
Other Contributions
TOTAL
CERTIFICATION
Form requires two original signatures. The person certifying must be different from the person preparing the report.
One signature should be the authorized representative of the Grantee organization or highest ranking officer; the
other should be the person who prepared the report.
I certify to the best of my knowledge and belief the information above is correct and funds were spent in
accordance with grant agreement terms and conditions.
Certified By: Prepared By:
Title: Date: Title: Date:
PROJECT NAME
Grant Agreement #
Page 29 of 34
Attachment 2 Progress Report Form
Grantee: [Name]
Project Name: [Posting Description]
Grant # [Buy-from Vendor No.]
Period of Report: ___________ to ________________
Project Activities Completed:
Existing or Potential Problems:
Activities Targeted for Next Reporting Period:
PROJECT NAME
Grant Agreement #
Page 30 of 34
Attachment 3 Other Funding Sources Agreement(s)
PROJECT NAME
Grant Agreement #
Page 31 of 34
Attachment 4 Notice of Substantial Completion
NOTICE OF SUBSTANTIAL COMPLETION
ALASKA ENERGY AUTHORITY
Project Name: [Posting Description]
Grantee: [Name] [Name 2]
Grant Number: [Buy-from Vendor No.]
Agreement Execution Date:
The Alaska Energy Authority certifies and acknowledges that the Project ref erenced above has
been substantially completed; with the following tasks remaining to be completed:
Project Manager Date
Alaska Energy Authority
The certifies that the Project named
above is substantially complete in accordance with the terms and conditions of Alaska Energy
Authority Agreement Number: and assumes all responsibility associated
with operating and maintaining the Project completed with Grant funds.
Authorized Signature Title
Printed Name Date
PROJECT NAME
Grant Agreement #
Page 32 of 34
Attachment 5 Notice of Project Closeout
NOTICE OF PROJECT CLOSEOUT
ALASKA ENERGY AUTHORITY
Project Name: [Posting Description]
Grantee: [Name] [Name 2]
Grant Number: [Buy-from Vendor No.]
Agreement Execution Date:
The Alaska Energy Authority certifies and acknowledges that the Project referenced above has
been completed, and that all tasks have been satisfactorily carried out in accordance with the
terms and conditions of Agreement Number: .
Project Manager Date
Alaska Energy Authority
The certifies that the
Project named above is complete in accordance with the terms and conditions of Alaska Energy
Authority Agreement Number: .
Authorized Signature Title
Printed Name Date
PROJECT NAME
Grant Agreement #
Page 33 of 34
Attachment 6 Waiver of Sovereign Immunity (if Required)
WAIVER OF SOVEREIGN IMMUNITY
RESOLUTION NUMBER__________________
A RESOLUTION OF THE [Name] [Name 2] accepting State of Alaska, Alaska Energy
Authority Grant number [Buy-from Vendor No.] for the [Posting Description] and waiving
sovereign immunity from suit for actions arising out of, or in connection with, the Grant.
WHEREAS, the Authority and the Denali Commission requires as a condition of the
Grant that the [Name] [Name 2] irrevocably waive any sovereign immunity which it may
possess, and consent to suit against itself or its officials as to all causes of action
arising out of or in connection with the Grant Agreement;
NOW THEREFORE BE IT RESOLVED THAT:
1. [Name] [Name 2] (initials) hereby consents to suit by the State of Alaska and/or by
the Denali Commission against (initials) and its officials in state court, federal court or in
administrative proceedings with respect to any disputes, clai ms or causes of action
(including without limitation enforcement or injunctive relief) arising out of or in
connection with Grant Agreement [Buy-from Vendor No.]; the contractual duties
assumed by (initials) under that agreement, the Secondary Operator Agreement, the
Access, Operations, and Maintenance Agreement, the Covenant of Public Purpose,
Use, and Access, and any other agreement pertaining to the grant -funded project; or
the operation of the facility following construction.
2. (Initials) hereby consents to levy, execution, or garnishment against (initials)'s
real and personal property, however held and wherever located, for any judgment or
order entered in any lawsuit or administrative proceeding related to or arising out of
Grant Agreement [Buy-from Vendor No.]; the contractual duties assumed by (initials)
under that agreement, the Secondary Operator Agreement, the Access, Operations,
and Maintenance Agreement, the Covenant of Public Purpose, Use, and Access, and
any other agreement pertaining to the grant-funded project; or the operation of the
facility following construction, including, but not limited to, awards of attorneys fees and
costs entered by any court.
3. (Initials) consents to the assertion by the State of any defenses, cross -claims, or
counterclaims in any civil action that is filed by (initials) against the state.
4. With respect to a claim or action by a force account employee or other employee
of (initials) arising out of or in connection with Grant Agreement [Buy-from Vendor No.];,
the contractual duties assumed by (initials) under that agreement, the Secondary
Operator Agreement, the Access, Operations, and Maintenance Agreement, the
PROJECT NAME
Grant Agreement #
Page 34 of 34
Covenant of Public Purpose, Use, and Access, and any other agreement pertaining to
the grant-funded project; or the operation of the facility following construction, (initials)
waives sovereign immunity to the extent of, and to the extent necessary to secure,
insurance coverage including workers compensation insurance.
5. This waiver shall in no case be deemed a waiver or consent to suit, tax, or any
other charge against (initials) by any party other than the State of Alaska or the Denali
Commission, except as specifically provided in (4) above.
6. [Pay-to Constituent] is hereby authorized to negotiate, administer and execute on
behalf of [Name] [Name 2] Grant number [Buy-from Vendor No.] for the [Posting
Description] and to negotiate, execute, and administer any other documents,
agreements, and contracts required under or related to the Grant Agreem ent including
subsequent amendments.
PASSED AND APPROVED BY [Name] [Name 2] On _________________ 20__.
IN WITNESS THERETO BY: SIGNATURE OF PRESIDENT
Signature__________________ Title_________________
Attest: SIGNATURE OF CLERK/SECRETARY
Signature__________________ Title_________________