2 C.F.R. § 930.125 – Cost sharing.

(a) Cost share is required as follows:
1. (1) In accordance with 42 U.S.C. 7256(g)(1), to the maximum extent practicable, the awardee must provide at least half of the costs of the project;
2. (2) In accordance with cost share requirements in section 988 of Energy Policy Act of 2005 (EPAct 2005), Public Law 109-58, as amended (42 U.S.C. 16352), for funded research, development, demonstration, or commercial application activities; and
3. (3) In accordance with any other applicable statutory cost share requirements.
(b) All awardee cost share or contributions, including cash and third-party in-kind contributions, must meet all of the following criteria:
1. (1) Are verifiable from the awardee's records;
2. (2) Are not included as contributions for any other Federal award;
3. (3) Are necessary and reasonable for accomplishment of the award or project objectives;
4. (4) Are allowable under the appropriate cost principles;
5. (5) Are not paid or provided by the Federal Government under another Federal award (Federal funds or property), except where the Federal statute authorizing a program specifically provides that Federal funds or property made available for such program can be applied to cost sharing requirements of other Federal programs or awards;
6. (6) Are not revenues or royalties from the prospective operation of an activity beyond the time considered in the award;
7. (7) Are not proceeds from the prospective sale of an asset of an activity;
8. (8) Are valued:
  1. (i) In accordance with the appropriate cost principles;
  2. (ii) Using the usual accounting policies of the awardee; and
  3. (iii) Not to exceed the fair market value (of donated property, equipment, or other capital assets) or the fair rental charge (of leased land, space, or equipment);
9. (9) Are provided for in the budget approved by Department of Energy (DOE); and
10. (10) Conform to other provisions of this part, as applicable.
(c) DOE may reduce or eliminate the cost share requirement imposed by 42 U.S.C. 7256(g)(1) where the Agreements Officer (AO), meaning the cognizant warranted DOE or National Nuclear Security Administration official authorized to execute and administer other transaction agreements, determines the cost sharing is impracticable in a given case, unless there is a statutory requirement for cost sharing that applies to the particular award. When section 988 of EPAct 2005 applies to an award, the AO must obtain the required approval of the elimination or reduction of the required cost share in accordance with the section 988 of EPAct 2005.