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Renewable Energy Fund
IMPORTANT NOTICE
Requests for Grant Applications (RFA) AEA-09-004
for
Renewable Energy Grant Program
RFA ISSUE DATE: September 3, 2008
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.
All applications received will be posted on the Authority web site after final
recommendations are made to the Legislature.
Return to:
Grant Manager: 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
Requests for Grant Applications AEA-09-004 Page 2 of 25 10/16/08
Requests for Grant Applications #AEA-09-004 for
Renewable Energy Grant Program
RFA ISSUE DATE: September 3, 2008
Grant Manager: Butch White
E-mail: re_fund@aidea.org
Alaska Energy Authority
813 West Northern Lights Blvd.
Anchorage, AK 99503
FAX: (907) 771-3942
Phone: (907) 771-3048
Requests for Grant Applications AEA-09-004 Page 3 of 25 10/16/08
Table of Contents
1. Introduction and Instructions ................................................................................ 5
1.1 Purpose ...................................................................................................................... 5
1.2 Introduction ................................................................................................................ 5
1.3 Government Roles and Responsibilities .................................................................. 5
1.4 Eligible Applicants ..................................................................................................... 6
1.5 Eligible Projects ......................................................................................................... 7
1.6 Filing an Application .................................................................................................. 7
1.7 Application Deadlines ............................................................................................... 8
1.8 RFA Project Web Site ................................................................................................ 8
1.9 Questions about the RFA .......................................................................................... 9
1.10 Modifications of the RFA ....................................................................................... 9
1.11 RFA Schedule ......................................................................................................... 9
1.12 Development of Grant Regulations ......................................................................10
1.13 Grant Funding ........................................................................................................10
1.14 Applicant Match .....................................................................................................11
1.15 Application Preparation Costs .............................................................................11
1.16 Application Content Requirements ......................................................................11
1.17 Authorized Signature ............................................................................................12
1.18 Applicant's Certification .......................................................................................12
1.19 Correction, Modification or Withdrawal of Applications .....................................12
1.20 Review of Applications - General .........................................................................12
1.21 Public Notice and Recommendations to the Legislature ...................................13
1.22 Notice of Intent to Award a Grant .........................................................................13
1.23 Grant Agreement ...................................................................................................13
1.24 Failure to Proceed .................................................................................................14
2. Project Requirements ........................................................................................... 14
2.1 Project Management Requirements ........................................................................14
2.2 Project Phase Descriptions ......................................................................................15
2.3 Phase I – Reconnaissance Requirements ...............................................................15
2.4 Phase II – Feasibility Analysis and Conceptual Design Requirements .................17
2.5 Phase III – Final Design and Permitting Requirements ..........................................18
2.6 Phase IV – Construction Requirements ..................................................................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 ....................................................................20
3.4. Contracts for Engineering Services ........................................................................20
3.5. Site Control ...............................................................................................................20
3.6. Permits ......................................................................................................................20
3.7. Exclusion of Existing Environmental Hazards .......................................................20
3.8. Environmental Standards .........................................................................................20
3.9. Current Prevailing Rates of Wage and Employment Preference ...........................21
3.10. Construction Plans and Specifications Review ..................................................21
3.11. Construction Contractor Insurance and Bonding ...............................................21
3.12. Post Construction Certification ............................................................................21
3.13. Ownership of Facilities .........................................................................................21
3.14. Operation and Maintenance of Facilities .............................................................21
3.15. Operation and Maintenance (O&M) Reporting ....................................................22
3.16. Tariffs & Rates for Use of Grant-Funded Assets .................................................22
3.17. Grant-Funded Assets Not Included in PCE .........................................................22
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4. Application Evaluation Process .......................................................................... 22
Stage 1 Review: Completeness and Eligibility .................................................................23
Stage 2 Review: Project Feasibility ...................................................................................23
Stage 3 Review: Final Evaluation & Ranking ....................................................................24
5. Appendices ........................................................................................................ 25
Application Form .................................................................................................................25
Application Cost Worksheet ...............................................................................................25
Grant Budget Form and Budget Form Instructions ..........................................................25
Sample Grant Agreement ....................................................................................................25
Requests for Grant Applications AEA-09-004 Page 5 of 25 10/16/08
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
new 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 and this Request for Applications (RFA). The program legislation, including
new AS 42.45.045, can be found on-line at
http://www.legis.state.ak.us/PDF/25/Bills/HB0152Z.PDF
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 grant terms and conditions related
to this program.
Section 4: Application Evaluation Process and Criteria – describes the criteria that
will be used to evaluate and rank each application.
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 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.
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The Legislature is responsible for final approval and funding of all grant projects. For
FY09 grants, Chapter 31 SLA 2008 established an expedited process of review of
projects by the Legislative Budget and Audit Committee (LB&A).
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. The Authority also has the
responsibility of establishing regulations for the purpose of implementing this program.
An Advisory Committee has been established for the Authority to consult with in the
development of regulations and ranking of applications.
The AEA Grant Manager 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’s 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 (for the purposes of this grant an
independent power producer is a corporation, person, agency authority,
or other legal entity or instrumentality that owns or operates facilities for
the generation of energy to be used at least 50% by the public and that is
not an electric utility);
3. A local government; or
4. A governmental entity, (which includes tribal councils and housing
authorities).
Applications whose applicants do not meet these requirements will be rejected without
further evaluation.
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1.5 Eligible Projects
The Authority may recommend grants for feasibility studies, reconnaissance studies,
energy resource monitoring, 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.
To be eligible for a grant recommendation the applicant’s project must:
1.5.1. Be a new project not in operation on 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, 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.
Or
be a facility that generates electricity from fuel cells that use hydrogen from
renewable energy resources or natural gas.
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.
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 (1) electronic version on CD in PDF or
other word-searchable electronic format in a sealed envelope(s) clearly labeled:
From: Applicant’s Return Address
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To: Alaska Energy Authority
AEA-09-004 – Renewable Energy Grant Application
813 West Northern Lights Blvd
Anchorage, AK 99503
Phone: 907-771-3000
1.7 Application Deadlines
The Authority is seeking to recommend projects based on applications that clearly
demonstrate a public benefit from the proposed project. It is understood that some
projects may be ready to proceed immediately and others will require more work to
develop. To address differing readiness and need for funding, the Authority intends to
solicit applications in two rounds.
The first round is intended to solicit applications for projects that may be ready and able
to proceed quickly with the anticipation that grants would be awarded by December
2008.
The second round is intended to solicit applications for projects that may require further
development or that may take more time to prepare applications. Additionally, the
second round is intended to provide the Authority with recommendations to the
Legislature for Fiscal Year 2010 funding.
First round applications should be received by the Authority at the address in Section
1.6 no later than 5:00 p.m., October 8, 2008.
Second round applications must be received by the Authority at the address in Section
1.6 no later than 5:00 p.m., November 10, 2008.
Failure to meet the deadlines may result in the application being rejected without
review.
The Applicant is solely responsible for complete and timely submission of its application.
The Authority accepts no responsibility for submission of applications or for applications
that are received after the application deadlines, whether because they were
misdirected, delayed, or erroneously addressed or for any other reason.
1.8 RFA Project Web Site
The Alaska Energy Authority web site at www.akenergyauthority.org has been set up to
make information available to the public regarding the project. The site contains the
following information and documents:
The RFA
Application and Grant forms
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 received upon completion of each review stage
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PDF versions of all applications received (upon completion of the review and
ranking process)
1.9 Questions about the RFA
Applicants should carefully review all documents and the Authority web site prior to
contacting the Grant Manager with questions. Any questions regarding the RFA or
grant documents should be directed to:
Grant Manager: 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 10 business days before the November 10, 2008 application due date.
The Grant Manager may contact the applicant directly by phone or e-mail to respond to
non-material questions. The Grant Manager will post the answer to material questions
on the Project website.
1.10 Modifications of the RFA
Applicants may submit written requests for modifications to this RFA to the Grant
Manager no later than September 17, 2008.
Acceptance or denial of the request is solely in the discretion of the Authority. The
Authority may not modify the requirements of AS 42.45.045 or Chapter 31 SLA 2008.
Failure of the Grant Manager to issue a written modification within 10 days from
submittal of request shall be considered a denial of the request.
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 to the Project web site at
www.akenergyauthority.org and the Authority will provide e-mail notice to those
registered to receive notices 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 dates are tentative and may vary depending on
the number of applications received, the complexity of applications, and timely
completion of review by the Legislature.
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Task Round One Round Two
Application Due Date 10/08/08 11/10/08
Complete Evaluation of Applications 11/10/08 12/19/08
Submit Projects for Approval by Legislative
Budget & Audit (LB&A) or Legislature
11/19/08 1/30/09
Projects approved for funding (contingent upon
LB&A and Legislative Action)
12/8/08 5/15/09
Finalize Award Documents (Contingent upon the
Authority receiving all documentation needed for
award)
12/19/08 7/1/09
These dates are based on the assumption that Round One involves FY2009 funding
and Round Two involves only FY2010 funding. Actual award dates for Round Two may
vary if FY2009 funding is still available or additional appropriations are made available
prior to 5/15/2009.
1.12 Development of Grant Regulations
Applicants should be aware that the Authority will be following the public process to
develop regulations for this program as required by statute (AS.45.45.045 (d)(1)). Draft
regulations may be posted during the solicitation period of this RFA. This RFA, and any
grants awarded as a result of this RFA, may be modified if there are any conflicts
between the regulations and this RFA or proposed grant terms or conditions.
1.13 Grant Funding
A grant resulting from this RFA is subject to legislative appropriation. The program
legislation indicates the Legislature intends to provide $50 million per year for the next
five (5) years for Renewable Energy Grants under this program; however the actual
amounts available for the program and for any particular grant depend on the
Legislature’s appropriations. The Legislature has appropriated $100 million for FY2009
grant awards subject to LB&A approval.
The Authority must receive approval from the Legislature or LB&A prior to award of any
grant.
AEA has established initial funding allocation targets as 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 in each round of submissions.
Project Type Target Allocation - % of Grant $’s
Recommended
Reconnaissance Study 20%
Feasibility/Conceptual Design or Energy Resource
Monitoring
Final Design and Permitting 80%
Construction
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Grantees may proceed with work on projects prior to award, provided that:
1) 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.
2) They must have sufficient funds from sources other than this program to meet their
project commitments.
3) No work performed or obligations incurred prior to August 20, 2008 will be
considered for reimbursement.
The Authority may recommend eligible projects for FY2009 funding from either Round
One or Round Two.
1.14 Applicant Match
When reviewing applications the Authority will favorably consider applications that
commit the applicant to provide either a fixed amount or percentage of matching funds
to complete the project.
Applicants should identify the amount and source of matching funds or other resources
(collectively referred to as ―match‖) the applicant will contribute to the project based on
the total proposed grant project budget.
Proposed match based on a percentage of total project budget means that the
applicant will contribute a percentage of cash or in-kind support based on the total
project budget. For example, if the total project budget is $60,000, and the Grantee’s
match is 20% of the project costs, the Grantee must provide $12,000 ($60,000 x .2 =
$12,000). The amount of grant funds would be $48,000.
If matching funds or in-kind contributions are proposed, the applicant will be required in
the grant award to provide the match as proposed.
See the budget form instructions and clarification of matching requirements.
1.15 Application Preparation Costs
The Authority shall not pay for any costs incurred by the Applicants 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.
1.16 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 Excel budget forms provided from the Project web site
(www.akenergyauthority.org).
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Below is a list of document names and their purpose:
Document Name Description Date Software
version
GrantApp.doc Application Form and Instructions 9/3/08 Word 2003
Costworksheet.doc Application Cost Worksheet 9/3/08 Word 2003
GrantBudget.xls Grant Application Budget Form 9/3/08 Excel 2003
GrantBudgetInstr.pdf Instructions for Application Budget
Form
9/3/08 Word 2003
SampleGrantAgreement.pdf Example of Standard Grant Form 9/3/08 Acrobat 7
1.17 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.
1.18 Applicant's Certification
By signature on their application, Applicants certify that their application is truthful and
certify that they are complying and will comply with: 1) the laws of the State of Alaska;
2) the applicable portion of the Federal Civil Rights Act of 1964; 3) the Equal
Employment Opportunity Act, the Americans with Disabilities Act (ADA) and the
regulations issued thereunder by the federal government; and 4) all terms and
conditions set out in this RFA.
1.19 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 manager before the time
and date set for receipt of the applications.
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.
1.20 Review of Applications - General
Applications will be reviewed in three stages by application evaluation committees,
which may include the Authority staff, consultants, and members of the Advisory
Committee established under the program legislation.
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Stage 1 – Completeness and Eligibility Review
Stage 2 – Technical and Financial Feasibility Review
Stage 3 – Final Evaluation and Ranking for Recommendations
Criteria that will be used for each stage are listed in Section 4.
Applications that do not comply with AS 42.45.45 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.
1.21 Public Notice and Recommendations to the Legislature
Upon completion of Stage 3 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, and the Authority will 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. Funding of any project is subject to LB&A approval for
Fiscal Year 2009 projects and Legislative approval for Fiscal Year 2010 projects.
Applicants may be required to provide additional information to the Legislature upon
request.
1.22 Notice of Intent to Award a Grant
Upon approval by LB&A for FY2009 grants or approval by the Legislature for FY2010
grants, the Authority will provide a Notice of Intent to Award a grant to the applicant for
each approved grant project. Grantees whose authorizations are less than what was
requested or whose project 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 proposed project and the funding available.
1.23 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
Sample Grant Agreement form dated 9/3/08 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.
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1.24 Failure to Proceed
If an Applicant is unable to respond and indicate acceptance of the Grant Agreement
within 30 days of receipt of the Grant Agreement or provide an update to its project as
may be required; then the offer of the grant may be withdrawn by the Authority and the
grant funds may be offered to another eligible grant applicant.
2. Project Requirements
Renewable energy projects funded under this grant program should proceed in phases
as described in this section, with the Grantee expected to substantially complete each
phase before receiving approval and funding to proceed to the next phase.
Applicants are expected to follow the accompanying instructions and use the application
forms to provide information required to be considered for a grant recommendation.
An application under the RFA should propose grant funding for one or more phases of
the Applicant’s renewable energy project as described below, and should 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 grant 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.
Project Management
Project Manager The Applicant must designate a project manager(s) responsible for
managing the project for the Grantee. This may be:
An employee of the Grantee
A consultant
Or other partners committed to the project (for example,
Native Corps, other Utilities, IPPs, or Government Entities.
If not known, the Grantee should indicate how they intend to
select 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 and descriptions of major
project decision points are encouraged.
Project Resources Identifies what people, equipment, or services will be used to
accomplish the project. Includes any commitments the Grantee
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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 phases and
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 and show a positive public
benefit resulting from 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 may need to be addressed in addition to the specific issues or tasks identified in
each phase.
Project phases that should be addressed in the applicant’s project description are as
follows. Within each phase, the major project tasks necessary to complete the phase
should be addressed.
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.
Phase IV – Construction,
Commissioning, Operation,
and Reporting
Completion of project construction and beginning of
operations. It also includes follow-up O&M reporting
requirements.
2.3 Phase I – Reconnaissance Requirements
The purpose of a Reconnaissance Study is to determine whether further study is
warranted. A Reconnaissance 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, age, and type of gensets
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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
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2.4 Phase II – Feasibility Analysis and 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 described above, 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
Land Ownership Assessment of site control requirements for proposed
project
Authorization from land owners for onsite feasibility
Requests for Grant Applications AEA-09-004 Page 18 of 25 10/16/08
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
2.5 Phase III – Final Design and Permitting Requirements
Building on information gathered in Phase I and II applicants are 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
Analysis and
Recommendations
Final operational and business plan
2.6 Phase IV – Construction Requirements
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 program’s impact on the community. Grantees are
expected to cover all costs of operations and maintenance in compliance with their
Requests for Grant Applications AEA-09-004 Page 19 of 25 10/16/08
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
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
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 document (see SampleGrantAgreement.pdf). If the Grantee is a tribal entity, a
waiver of sovereign immunity also 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
Requests for Grant Applications AEA-09-004 Page 20 of 25 10/16/08
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.
3.3. 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.
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 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 Coastal Zone Management coordination
through the Division of Coastal and Ocean Management (DNR).
3.7. Exclusion of Existing Environmental Hazards
Grant funds will not be awarded for and may not be used for environmental
investigation, removal or remediation of contamination, remediation of existing facilities
or properties, or any other environmental matters, unless specifically provided in the
Grant Agreement. In addition, grant funds will not be awarded for and may not be used
for the decommissioning or removal of any existing facilities except as specifically
provided in the Grant Agreement.
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.
Requests for Grant Applications AEA-09-004 Page 21 of 25 10/16/08
3.9. Current Prevailing Rates of Wage and Employment Preference
Certain grant Projects are constrained by the provisions of AS 36. PUBLIC
CONTRACTS. To the extent that such provisions apply to the Project, which is the
subject of this Grant Agreement, the Grantee shall pay the current prevailing rates of
wage to employees as required by AS 36.05.010. The Grantee shall also require any
contractor to pay the current prevailing rates of wage as required by AS 36.05.010.
Further, in accordance with AS 36.10.010, 95% (percent) of the work force employed in
the completion of this Project shall be local residents where they are available and
qualified. If 10 or fewer persons are employed, then 90% (percent) of the project work
force shall be local residents where they are available and qualified.
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 Contractor Insurance and Bonding
The Grantee must require construction contractors to provide proof of adequate
insurance and payment and performance bonding prior to beginning construction on a
project in accordance with AS 36.25.010.
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. 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
Requests for Grant Applications AEA-09-004 Page 22 of 25 10/16/08
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. Operation and Maintenance (O&M) Reporting
For all construction projects the Grantee must provide an O&M report that provides
detailed description of operations and maintenance activities and cost, energy output
and fuel displacement estimations, and discussion of operational issues. Failure to
provide this information may result in the Grantee being ineligible for future grant funds
from the Authority.
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 may be
subject to review and approval by the Authority to ensure reasonable and appropriate
public benefit from the Project.
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 three stages by application evaluation committees,
which may include the Authority staff, consultants, and Advisory Committee members:
Stage 1 – Completeness and Eligibility Review
Stage 2 – Technical and Financial Feasibility Review
Stage 3 – Final Evaluation and Ranking for Recommendations
Applications that do not comply with AS 42.45.45 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
advantage in the review process.
Upon submission of the final recommendations to the Legislature the Authority will
make all applications available for review on the Authority’s web site.
Decisions made in each stage of the review process will be documented in writing and
made a part of the grant file.
Requests for Grant Applications AEA-09-004 Page 23 of 25 10/16/08
Stage 1 Review: Completeness and Eligibility
All applications received by the deadline will initially be reviewed by the Authority staff to
assess if the application is complete, meets the minimum submission requirements, and
has adequate information to proceed to Stage 2 – Technical Evaluation.
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 1.4).
2. The project meets the definition of an Eligible Project (sec 1.5).
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 (sec 1.4).
4. The application provides a detailed description of the phase(s)
of project proposed—i.e. reconnaissance, feasibility
analysis/conceptual design, final design/permitting, and/or
construction (sec 2.2).
5. The application is complete in that the information provided is
sufficiently responsive to the RFP to allow AEA to consider the
application in the next stage of evaluation.
6. The applicant provides evidence of having the minimum
technical, financial, and management capability to complete the
work as proposed in the grant or a reasonable plan to obtain it.
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.
Stage 2 Review: Project Feasibility
All applications that pass Stage 1 will be reviewed for feasibility in accordance with the
criteria below:
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. Project development, operation, maintenance, fuel, and
other cost and savings estimates 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
Requests for Grant Applications AEA-09-004 Page 24 of 25 10/16/08
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. Use of local labor and training of 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:
specific benefits of proposed technology are likely
(such as application in other areas of the State);
need for this project is shown; (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
b. The project has an adequate financing plan for
completion of the grant-funded phase and has
considered options for funding subsequent phases of the
project.
c. Other benefits to the Alaska public are demonstrated.
The Authority may develop a preliminary list of feasible applications and may request
additional information from applicants at this stage to confirm a complete understanding
of the project proposed.
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.
Stage 3 Review: Final Evaluation and Ranking
All applications that pass the technical review will be scored and ranked based on the
following criteria which include criteria required by AS 42.45.045.
Requests for Grant Applications AEA-09-004 Page 25 of 25 10/16/08
Final 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 to assure funding is made
available for feasible projects in all regions of the State.
4. Project feasibility (value from Stage 2)
5. Project readiness. How quickly the proposed work can begin
and be accomplished
6. Success in previous phases of project development.
7. Economic Benefit to the Alaska Public
8. Other Alaska Public Benefit (such as ability to use technology
in other parts of Alaska).
9. Sustainability – Operations and Maintenance
10. Local Support
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.
The Authority may recommend a project be funded for an amount different than what
was requested.
5. Appendices
Application Form
Application Cost Worksheet
Grant Budget Form and Budget Form Instructions
Sample Grant Agreement
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 1 of 9 9/2/2008
Application Forms and Instructions
The following forms and instructions are provided for 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.html
The following application forms are required to be submitted for a grant recommendation:
Grant Application
Form
GrantApp.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
Costworksheet.doc Summary of Cost information that should be addressed
by applicants in preparing their application.
Grant Budget
Form
GrantBudget.xls A detailed grant budget that includes a breakdown of
costs by task and a summary of funds available and
requested to complete the work for which funds are being
requested.
Grant Budget
Form Instructions
GrantBudgetInstr.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 a plan
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.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 2 of 9 9/3/2008
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, 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 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.)
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 3 of 9 9/3/2008
SECTION 2 – PROJECT SUMMARY
Provide a brief 1-2 page overview of your project.
2.1 PROJECT TYPE
Describe the type of project you are proposing, (Reconnaissance; Resource Assessment/
Feasibility Analysis/Conceptual Design; Final Design and Permitting; and/or Construction) as
well as the kind of renewable energy you intend to use. Refer to Section 1.5 of RFA.
Type in your answer here and follow same format for rest of the application.
2.2 PROJECT DESCRIPTION
Provide a one paragraph description of your project. At a minimum include the project location,
communities to be served, and who will be involved in the grant project.
2.3 PROJECT BUDGET OVERVIEW
Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature and source
of other contributions to the project. Include a project cost summary that includes an estimated total cost
through construction.
2.4 PROJECT BENEFIT
Briefly discuss the financial benefits that will result from this project, including an estimate of economic
benefits(such as reduced fuel costs) and a description of other benefits to the Alaskan public.
2.5 PROJECT COST AND BENEFIT SUMARY
Include a summary of your project’s total costs and benefits below.
2.5.1 Total Project Cost
(Including estimates through construction.) $
2.5.2 Grant Funds Requested in this application. $
2.5.3 Other Funds to be provided (Project match) $
2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $
2.5.5 Estimated Benefit (Savings) $
2.5.6 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.)
$
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 4 of 9 9/3/2008
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.
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.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 5 of 9 9/3/2008
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 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 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.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 6 of 9 9/3/2008
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
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 7 of 9 9/3/2008
4.4 Proposed New System Costs (Total Estimated Costs and proposed 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.
Total anticipated project cost for this phase
Requested grant funding
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 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.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 8 of 9 9/3/2008
4.4.5 Business Plan
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.
4.4.6 Analysis and Recommendations
Provide information about the economic analysis and the proposed project. Discuss your
recommendation for additional project development work.
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 avoided cost of ownership)
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 – GRANT BUDGET
Tell us how much your total project costs. Include any investments to date and funding sources,
how much is requested in grant funds, and additional investments you will make as an
applicant.
Include an estimate of budget costs by tasks using the form - GrantBudget.xls
Provide a narrative summary regarding funding sources and your financial commitment to the
project.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 9 of 9 9/3/2008
SECTION 7 – 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 6.
D. An electronic version of the entire application per RFA Section 1.6
E. Governing Body Resolution per RFA Section 1.4
Enclose a copy of the resolution or other formal action taken by the applicant’s
governing body or management that:
- authorizes this application for project funding at the match amounts indicated in
the application
- authorizes the individual named as point of contact to represent the applicant for
purposes of this application
- states the applicant is in compliance with all 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
RFA AEA 09-004 Application Cost Worksheet revised 9/26/08 Page 1
Application Cost Worksheet
Please note that some fields might not be applicable for all technologies or all project
phases. 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
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]
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
RFA AEA 09-004 Application Cost Worksheet revised 9/26/08 Page 2
iii. Propane [gal or MMBtu]
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry tons]
vi. Other
3. Proposed System Design
a) Installed capacity
b) Annual renewable electricity generation
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
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
Renewable Energy Fund
RFA AEA 09-004 Application Cost Worksheet revised 9/26/08 Page 3
7. Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio
Payback
Alaska Energy Authority - Renewable Energy Fund
BUDGET INFORMATION
BUDGET SUMMARY:
Milestone or Task Federal Funds State Funds
Local Match
Funds (Cash)
Local Match
Funds (In-Kind)Other Funds TOTALS
1 $0.00
2 $0.00
3 $0.00
4 $0.00
5 $0.00
6 $0.00
Milestone # or Task #
BUDGET CATAGORIES:1 2 3 4 5 6 TOTALS
Direct Labor and Benefits $0.00
Travel, Meals, or Per Diem $0.00
Equipment $0.00
Supplies $0.00
Contractual Services $0.00
Construction Services $0.00
Other Direct Costs $0.00
TOTAL DIRECT CHARGES $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
RFA AEA09-004 Budget Form
Renewable Energy Fund
RFA AEA09-004 Grant Budget Instructions Page 1 of 4
Grant Budget Instructions
Information concerning the proposed budget needs to be provided on the attached form.
The Budget Summary (upper portion of the form) is to provide information on the funding for the
entire project by tasks. The applicant is to provide amounts and identify the source of all funds
that will be used to complete this project. The tasks should represent major units of work that
will need to be completed on the project. At a minimum they should represent the phases
discussed in the application (Reconnaissance, Feasibility, Design and Permitting, or
Construction). Tasks may also represent subtasks under a specific phase. For example, under
Conceptual Design phase, a separate permitting task could be noted.
The Budget Categories (lower portion of the form) is to provide specific budget information for
the grant funds being applied for. Budget information for the other funds to be used to complete
the project need only be provided if that additional information is currently available.
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.
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.
1. Allowable Cost
Allowable costs are only those costs that are directly related to those activities necessary for the
completion of the proposed project. The categories of costs and additional limits or restrictions
are listed below:
a. Direct Labor and Benefits
Include salaries, wages, and employee benefits of the Applicant’s employees for that portion
of those costs that will be 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 Applicant’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 Applicant employees for which expenses
the employees are reimbursed under the Applicant’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 a
grant may be allowed. However, damage or losses that result from the Applicant’s
Renewable Energy Fund
RFA AEA09-004 Grant Budget Instructions Page 2 of 4
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 Applicant necessary for the project.
e. Contractual Services
Include the Applicant’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 Applicant’s cost for construction contracts, labor,
equipment, materials, insurance, bonding, and transportation necessary for the project.
Work performed by the Applicant’s employees during construction may be budgeted under
direct labor and benefits, project management or engineering. Major equipment purchases
made by the Applicant 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 Applicant’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.
The Applicant is reminded to include sufficient funds for the management of the project, as the
Authority may terminate the grant or assume the project management responsibilities if it is
determined by the Authority that the Applicant is not providing adequate project management on
its own.
2. 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. This is not intended to be a complete list of all ineligible
expenditures.
Overhead costs described in this section include:
salaries, wages, applicable employee benefits, and business-related expenses of the
Applicant’s employees performing functions not directly related to the grant project;
Renewable Energy Fund
RFA AEA09-004 Grant Budget Instructions Page 3 of 4
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.
3. 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.
4. 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.
The value assessed to Applicant 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 that would be charged if procured through a competitive process. Rates
paid will not exceed the fair market value of the equipment if purchased.
Renewable Energy Fund
RFA AEA09-004 Grant Budget Instructions Page 4 of 4
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.
5. 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
Travel and per diem reimbursement documentation
Contractor or vendor pay requests
Invoices
Timesheets or check copies to document proof of payment must be available for audit purposes
at the Applicants place of business.
Payment of grant funds will be subject to the Applicant complying with its matching contribution
requirements of the proposed grant.
SAMPLE GRANT AGREEMENT
Alaska Energy Authority
Grant Agreement
Grant Agreement Number
[Buy-from Vendor No.]
Amount of Funds
$ [Amount Including Tax]
Project Code(s)
[Shortcut Dimension 2 Code]
Encumbrance Number/AR
[No.]
Project Title
[Posting Description]
Grantee Grantor
Name
[Name] Alaska Energy Authority
Street/PO Box
[Address]
Street/PO Box
813 W. Northern Lights Blvd
City/State/Zip
[City], [State] [ZIP Code]
City/State/Zip
Anchorage, AK 99503
Contact Person
[Buy-from Constituent]
Contact Person
[Your Reference]
Phone
907-999-9999
Fax
907-999-9999
Phone
907-771-9999
Fax
907-771-3044
AGREEMENT
The Alaska Energy Authority (hereinafter „Authority‟) and [Name] (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 $[Amount Including Tax], 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 [Contract Termination 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: Scope of Grant (Grantee
proposal)
Appendix D: Project Management and
Reporting Requirements
Appendix E: Project Budget and
Reimbursement
Provisions
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)
AMENDMENTS: Any amendments to this Agreement must be signed by authorized representatives of Grantee
and the Authority and should be listed here.
Grantee Authority
Project Manager
Executive Director or
Designee
Signature
Signature
Printed Name and Title
[Buy-from Constituent]
Printed Name and Title
[Your Reference]
Steve Haagenson,
AEA Executive Director
Date
Date Date
PROJECT NAME SAMPLE GRANT AGREEMENT
Grant Agreement Number
Page 2 of 32
Page 2 of 32 9/3/08
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. PAYMENT OF TAXES ................................................................................................................................. 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 ......................................................................................... 9
30. AUDITS ...................................................................................................................................................... 10
31. LEGAL AUTHORITY ................................................................................................................................. 10
32. GRANT CLOSE OUT .................................................................................................................................. 10
APPENDIX B SPECIAL PROVISIONS .............................................................................................................. 11
1. PROJECT FUNDING SOURCES.................................................................................................................. 11
2 GOVERNING LAWS .................................................................................................................................. 11
3. ELIGIBLE COSTS ....................................................................................................................................... 11
State Grants: ...................................................................................................................................................... 11
4. INSURANCE REQUIREMENTS (NEED TO ADJUST PER PROJECT REQUIREMENTS.) .......................... 11
5. SOVEREIGN IMMUNITY (IF REQUIRED). ................................................................................................ 12
STANDARD PROVISIONS FOR GENERAL DESIGN AND CONSTRUCTION GRANT ............................. 12
1. DECLARATION OF PUBLIC BENEFIT ...................................................................................................... 12
2. GRANTEE PROJECT MANAGER ............................................................................................................... 13
3. APPROVAL TO PROCEED WITH NEXT PHASE ....................................................................................... 13
4. CONTRACTS FOR ENGINEERING SERVICES ........................................................................................... 13
PROJECT NAME SAMPLE GRANT AGREEMENT
Grant Agreement Number
Page 3 of 32
Page 3 of 32 9/3/08
5. SITE CONTROL ......................................................................................................................................... 13
6. PERMITS .................................................................................................................................................... 13
7. EXCLUSION OF EXISTING ENVIRONMENTAL HAZARDS ...................................................................... 13
8. ENVIRONMENTAL STANDARDS .............................................................................................................. 14
9. CURRENT PREVAILING RATES OF WAGE AND EMPLOYMENT PREFERENCE .................................... 14
10. CONSTRUCTION PLANS AND SPECIFICATIONS REVIEW ...................................................................... 14
11. CONSTRUCTION CONTRACTOR INSURANCE AND BONDING ............................................................... 14
12. POST CONSTRUCTION CERTIFICATION.................................................................................................. 14
13. OWNERSHIP OF FACILITIES .................................................................................................................... 14
14. OPERATION AND MAINTENANCE OF FACILITIES ................................................................................. 14
15. OPERATION AND MAINTENANCE (O&M) REPORTING (FOR ALTERNATIVE ENERGY PROJECTS
ONLY, NEED TO KNOW FOR HOW LONG, HOW OFTEN, AND WHO PAYS FOR THIS) ................................... 15
16. TARIFFS AND RATES FOR USE OF GRANT-FUNDED ASSETS ............................................................... 15
17. GRANT-FUNDED ASSETS NOT INCLUDED WITH PCE ........................................................................... 15
STANDARD PROVISIONS FOR AEA MANAGED PROJECTS MAY BE USED FOR OTHER PASS-
THRU.......................................................................................................................................................................... 15
1. AUTHORITY’S RESPONSIBILITIES .......................................................................................................... 15
2. FORCE ACCOUNT PAYROLL AND PROJECT COORDINATION .............................................................. 16
3. SUBSTANTIAL COMPLETION OF PROJECT ............................................................................................. 16
APPENDIX C GRANTEE PROPOSAL/SCOPE OF WORK ............................................................................ 17
BASIC GRANT FORMAT: ....................................................................................................................................... 17
APPENDIX C-1 MODIFICATIONS TO GRANTEE’S PROPOSAL ............................................................... 18
APPENDIX D PROJECT MANAGEMENT AND REPORTING REQUIREMENTS ................................... 19
1. PROJECT MANAGEMENT ......................................................................................................................... 19
2. CONTACT PERSONS ................................................................................................................................. 19
3. MONTHLY PROGRESS AND FINANCIAL REPORTS ................................................................................ 19
3. QUARTERLY PROGRESS AND FINANCIAL REPORTS............................................................................. 20
4. DOCUMENTATION AND RECORD KEEPING ........................................................................................... 20
APPENDIX E PROJECT BUDGET AND REIMBURSEMENT PROVISIONS .............................................. 21
1. ALLOWABLE COSTS (FOR STATE GRANTS ONLY; FEDERAL GRANTS WILL HAVE ALLOWABLE
COSTS DEFINED BY THE CFRS.) ........................................................................................................................... 21
a. Direct Labor and Benefits ........................................................................................................................ 21
b. Travel, Meals, or Per Diem ...................................................................................................................... 21
c. Equipment ................................................................................................................................................. 21
d. Supplies .................................................................................................................................................... 21
e. Contractual Services................................................................................................................................. 22
f. Construction Services ............................................................................................................................... 22
g. Other Direct Costs .................................................................................................................................... 22
2. SPECIFIC EXPENDITURES NOT ALLOWED ............................................................................................. 22
3. MATCH ...................................................................................................................................................... 23
4. COST SHARE MATCH REQUIREMENTS .................................................................................................. 23
5. VALUING IN-KIND SUPPORT AS MATCH ............................................................................................... 23
6. GRANT DISBURSEMENTS ........................................................................................................................ 24
7. WITHHOLDING OF GRANT FUNDS .......................................................................................................... 24
8. ADVANCE DISBURSEMENTS (IF ALLOWED) .......................................................................................... 25
9. UNEXPENDED GRANT FUNDS AND INTEREST EARNED (THIS CLAUSE MAYBE MODIFIED
DEPENDING ON THE SOURCE OF GRANT FUNDS.) ............................................................................................. 25
10. BUDGET FLEXIBILITY .............................................................................................................................. 25
11. PROGRAM INCOME (FEDERAL PROJECT ISSUE) ................................................................................... 25
PROJECT NAME SAMPLE GRANT AGREEMENT
Grant Agreement Number
Page 4 of 32
Page 4 of 32 9/3/08
ATTACHMENT 1 FINANCIAL REPORT/REQUEST FOR REIMBURSEMENT FORM .......................... 26
ATTACHMENT 2 PROGRESS REPORT FORM ............................................................................................. 27
ATTACHMENT 3 OTHER FUNDING SOURCES AGREEMENT(S) ............................................................ 28
ATTACHMENT 4 NOTICE OF SUBSTANTIAL COMPLETION .................................................................. 29
ATTACHMENT 5 NOTICE OF PROJECT CLOSEOUT ................................................................................. 30
ATTACHMENT 6 WAIVER OF SOVEREIGN IMMUNITY (IF REQUIRED) ............................................. 31
PROJECT NAME SAMPLE GRANT AGREEMENT
Grant Agreement Number
Page 5 of 32
Page 5 of 32 9/3/08
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 delegate 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,
or other goods, materials, equipment, 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.
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
require any contractor to provide and maintain Workers‟ Compensation Insurance for its
employees as required by AS 23.30.
PROJECT NAME SAMPLE GRANT AGREEMENT
Grant Agreement Number
Page 6 of 32
Page 6 of 32 9/3/08
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.
PROJECT NAME SAMPLE GRANT AGREEMENT
Grant Agreement Number
Page 7 of 32
Page 7 of 32 9/3/08
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 and 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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Grant Agreement Number
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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 funding, 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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Grant Agreement Number
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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. Payment of Taxes
As a condition of this Grant Agreement, the Grantee shall pay all Federal, State and Local taxes
incurred by the Grantee and shall require their payment 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.
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
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Grant Agreement Number
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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
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.
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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Grant Agreement Number
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Appendix B Special Provisions
1. Project 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.
2 Governing Laws
The Grantee shall perform all aspects of this Project in compliance with all applicable laws and
regulations, specifically including:
(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:
State Grants:
(refer to any State Statues or Regulations that may be required.)
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.
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Grant Agreement Number
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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 officials, 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
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)
Standard Provisions for General Design and 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.
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Grant Agreement Number
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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.
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.
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Grant Agreement Number
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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
Certain grant projects are constrained by the provisions of AS 36. PUBLIC CONTRACTS. To
the extent that such provisions apply to the Project, which is the subject of this Grant
Agreement, the Grantee shall pay the current prevailing rates of wage to employees as
required by AS 36.05.010. The Grantee shall also require any contractor to pay the current
prevailing rates of wage as required by AS 36.05.010. Further, in accordance with AS
36.10.010, 95% (percent) of the work force employed in the completion of this Project shall be
local residents where they are available and qualified. If 10 or fewer persons are employed,
then 90% (percent) of the project work force shall be local residents where they are available
and qualified.
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 Contractor Insurance and Bonding
The Grantee must require construction contractors to provide proof of adequate insurance and
payment and performance bonding prior to beginning construction on a project in accordance
with AS 36.25.010.
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
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Grant Agreement Number
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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. Operation and Maintenance (O&M) Reporting (for Alternative Energy projects only, need to know for how long, how often, and who pays for this)
For all construction projects the Grantee must provide an O&M report that provides detailed
description of operations and maintenance activities and cost, energy output and fuel
displacement estimations, and discussion of operational issues. Failure to provide this
information may result in the Grantee being ineligible for future grant funds from the Authority.
16. Tariffs and 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.
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.
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
by the funding authority, 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.
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Grant Agreement Number
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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.
The Grantee may disagree with substantial completion 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 they believe the Notice should not be issued. Further, the Grantee must
explain what they expect should be done so the Notice can be issued, and in what time-frame
the additional issues identified can be completed in. The Authority will follow-up within 60 days,
letting the Grantee know if their objections have been accepted, or the Notice of Substantial
Completion stands; or, is modified.
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Grant Agreement Number
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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 Application includes all these elements and is accepted in full, it may be
inserted here. If the Authority does not accept the Grantee’s application 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
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Grant Agreement Number
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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.
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Grant Agreement Number
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Appendix D Project Management and 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 unforeseen
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
Name
Address
Email & Phone
Grant Manager
Butch White, Grants Administrator
813 W. Northern Lights Blvd.
Anchorage, Alaska 99503
bwhite@aidea.org
(907) 771-3052
Project Manager
Name
Address
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.
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Grant Agreement Number
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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 AEA Project Manager. Reports are due January 15th;
April 15th; July 15th, and; September 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.
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Grant Agreement Number
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Appendix E Project Budget and Reimbursement Provisions
1. Allowable Costs (For State grants only; Federal grants will have allowable costs
defined by the CFRs.)
Allowable costs under this grant include all reasonable and ordinary costs for direct labor and
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 of 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 and 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.
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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
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 SAMPLE GRANT AGREEMENT
Grant Agreement Number
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Page 23 of 32 9/3/08
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 $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 is increased the Grantee will be required to provide an equivalent match at the
percentage identified in this section.
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 if the Authority determines 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 all of its 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.
PROJECT NAME SAMPLE GRANT AGREEMENT
Grant Agreement Number
Page 24 of 32
Page 24 of 32 9/3/08
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
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
Travel and per diem reimbursement documentation
Contractor or vendor pay requests
Invoices
Timesheets or check copies to document proof of payment must be available for audit purposes
at the Grantees place of business.
Payment of grant funds will be subject to the Grantee complying with its matching contribution
requirements of the Grant.
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.
The Authority may withhold grant funds 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 SAMPLE GRANT AGREEMENT
Grant Agreement Number
Page 25 of 32
Page 25 of 32 9/3/08
8. Advance Disbursements (if allowed)
In most instances, the Authority will make payment to a Grantee on a cost reimbursable basis.
If the Authority determines that cost reimbursement will significantly inhibit the Grantee‟s ability
to perform the Project and determines that an advance is in the public interest, the Authority
may advance to the Grantee 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 Flexibility
The Grantee may revise the Project budget line items in Appendix C without a formal
amendment to this agreement, provided the total grant amount is not exceeded and further
provided such revisions are limited to a maximum of 10% (per cent) of the total amount of this
agreement or $10,000, whichever is less, over the entire term of this agreement. Such budget
revisions shall be limited to changes to existing budget line items, or the creation of new budget
line items which are within the scope of the Project. Budget revisions may not be used to
increase any budget item for Project administrative expenses.
Changes to the budget beyond the limits authorized by this provision may only be made by a
formal amendment to this Grant Agreement.
The Grantee shall indicate each budget revision to the original Project budget on its Financial
Reports submitted to the Authority.
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 SAMPLE GRANT AGREEMENT
Grant Agreement Number
Page 26 of 32
Page 26 of 32 9/3/08
Attachment 1 Financial Report/Request for Reimbursement Form
[Posting Description]
Grantee: [Name]
Period: to Grant Number : [Buy-from Vendor No.]
Financial Report - Grant Funds
Budget Summary by Task or Milestone
Task or Milestone Number Total Grant
Budget
Expenditures
to Date
Expenditures
this Period
Total
Expenditures Grant Balance
1.
2.
3.
4.
5.
6.
7.
TOTALS
Budget Summary by Fund Sources
Grant Funds
Grantee Match – Cash
Grantee Match – In kind
Grantee – Other Funds
(Source)
Grantee – Federal Funds
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 SAMPLE GRANT AGREEMENT
Grant Agreement Number
Page 27 of 32
Page 27 of 32 9/3/08
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 SAMPLE GRANT AGREEMENT
Grant Agreement Number
Page 28 of 32
Page 28 of 32 9/3/08
Attachment 3 Other Funding Sources Agreement(s)
PROJECT NAME SAMPLE GRANT AGREEMENT
Grant Agreement Number
Page 29 of 32
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Attachment 4 Notice of Substantial Completion
NOTICE OF SUBSTANTIAL COMPLETION
ALASKA ENERGY AUTHORITY
Project Name: [Posting Description]
Grantee: [Name]
Grant Number: [Buy-from Vendor No.]
Agreement Execution Date:
The Alaska Energy Authority certifies and acknowledges that the Project referenced 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 SAMPLE GRANT AGREEMENT
Grant Agreement Number
Page 30 of 32
Page 30 of 32 9/3/08
Attachment 5 Notice of Project Closeout
NOTICE OF PROJECT CLOSEOUT
ALASKA ENERGY AUTHORITY
Project Name: [Posting Description]
Grantee: [Name]
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 SAMPLE GRANT AGREEMENT
Grant Agreement Number
Page 31 of 32
Page 31 of 32 9/3/08
Attachment 6 Waiver of Sovereign Immunity (if required)
WAIVER OF SOVEREIGN IMMUNITY
RESOLUTION NUMBER__________________
A RESOLUTION OF THE [Name] 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] 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] (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, claims 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 SAMPLE GRANT AGREEMENT
Grant Agreement Number
Page 32 of 32
Page 32 of 32 9/3/08
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. [Buy-from Contact] is hereby authorized to negotiate, administer and execute on
behalf of [Name] 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 Agreement including subsequent amendments.
PASSED AND APPROVED BY [Name] On _________________ 200_.
IN WITNESS THERETO BY: SIGNATURE OF PRESIDENT
Signature__________________ Title_________________
Attest: SIGNATURE OF CLERK/SECRETARY
Signature__________________ Title_________________