Rice Straw Rice Straw Demonstration Project Fund

Clarification from Applicant Workshop

At the February 20, 1998, Rice Fund Applicants' Workshop, we were asked to provide written confirmation to eight questions.

1 Q If funds from "other funding sources" have not yet been secured (for example, if a loan application is still being reviewed), can the letter of intent from the funding source be submitted after the application deadline?

A The grant request must contain information about the tentative source of funds, including the contact person's name and telephone number, a letter from the source acknowledging that the request for funds is being considered, and the expected date when the decision whether to fund will be made. The funding commitment, however, must be provided before a grant can be awarded.

2 Q If an applicant intends to work on the project but will not draw a salary for his or her work, can the salary be used as an in-kind contribution?

A Yes, a reasonable salary can be used as an in-kind contribution to the project.

3 Q If a proposed project will ultimately be located in a rice growing county, but initial work on the project will be done outside the Sacramento Valley, will the project get points for meeting the location criterion?

A The final project location will be the basis for the location criterion. Reviewers will make their judgements based on the assurances and evidence the applicant provides.

4 Q When the Rice Fund project is completed, will proprietary processes developed during the grant agreement and described in progress reports be available to the public?

A Any information provided to the ARB during or at the completion of the project which is deemed to be confidential will be kept confidential. The grant recipient will retain ownership and control of any technology or proprietary process developed during the grant agreement. See attached government codes for explanation of the type of information which may be claimed as confidential and information regarding the release of public records.

5 Q Can the costs of product laboratory testing for product certification, such as ICBO certification, be used for prior investment credit?

A Prior investment credit for product certification testing may be taken for expenditures made for up to five years before the date of the grant application when the testing is done by a recognized laboratory. Appropriate documentation must be provided for the credit to be accepted.

6 Q Project costs of real, tangible property must be annualized; can the cost of installing equipment be taken fully?

A No, equipment installation cost should be included in the cost of the equipment and amortized.

7 Q If an applicant plans to use products from his or her existing business in the proposed Rice Fund project, can the difference between the product's cost and market value be used as an in-kind contribution?

A No, but the annualized, reasonable production cost of such products may be used for in-kind contribution.

8 Q If one project partner plans to pay all costs of the project, do the other partners need to submit financial documents?

A All applicant principals (those owning 20 percent or more of the applicant business) must submit financial information as outlined on page 24 of the Invitation for Grant Requests document. For individuals, this includes current personal net worth statements (i.e., assets minus liabilities) and tax returns for the last three years. The personal net worth statement may be prepared by the applicant and need not be audited.

Two attachments:

1. Government Code Section 6250-6279, California Public Records Act (see particularly Sections 6254 and 6254.7)

2. California Code of Regulations, Title 17, Section 91000 et seq., Disclosure of Public Records