GRANT FUNDING OPPORTUNITY

Demonstrate Business Case for Advanced Microgrids in Support of California’s Energy and GHG Policies

GFO-17-302http://www.energy.ca.gov/contracts/index.html

State of CaliforniaCalifornia Energy Commission

August 2017

Addendum #3October 2017

Table of ContentsI. INTRODUCTION.......................................................................................................................................... 1

A. PURPOSE OF SOLICITATION....................................................................................................................................1B. KEY WORDS/TERMS.............................................................................................................................................4C. APPLICANTS’ ADMONISHMENT...............................................................................................................................6D. ADDITIONAL REQUIREMENTS..................................................................................................................................6E. BACKGROUND.....................................................................................................................................................8F. FUNDING.........................................................................................................................................................14G. KEY ACTIVITIES SCHEDULE...................................................................................................................................18H. NOTICE OF PRE-APPLICATION WORKSHOPS............................................................................................................18I. QUESTIONS......................................................................................................................................................21

II. ELIGIBILITY REQUIREMENTS...................................................................................................................... 22

A. APPLICANT REQUIREMENTS.................................................................................................................................22B. PROJECT REQUIREMENTS....................................................................................................................................23

III. APPLICATION ORGANIZATION AND SUBMISSION INSTRUCTIONS..............................................................43

A. APPLICATION FORMAT, PAGE LIMITS, AND NUMBER OF COPIES.................................................................................43B. PREFERRED METHOD FOR DELIVERY......................................................................................................................44C. HARD COPY DELIVERY........................................................................................................................................44D. APPLICATION ORGANIZATION AND CONTENT...........................................................................................................45

IV. EVALUATION AND AWARD PROCESS......................................................................................................... 50

A. APPLICATION EVALUATION..................................................................................................................................50B. RANKING, NOTICE OF PROPOSED AWARD, AND AGREEMENT DEVELOPMENT................................................................50C. GROUNDS TO REJECT AN APPLICATION OR CANCEL AN AWARD..................................................................................51D. MISCELLANEOUS................................................................................................................................................52E. STAGE ONE: APPLICATION SCREENING..................................................................................................................53F. STAGE TWO: APPLICATION SCORING....................................................................................................................55

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ATTACHMENTS

Attachment Number Title

1 Application Form (requires signature)

2 Executive Summary Form

3 Fact Sheet Template

4 Project Narrative Form

5 Project Team Form

6 Scope of Work Template

6a Scope of Work Template: Project Schedule (Excel spreadsheet)

7 Budget Forms (Excel spreadsheet)

8 CEQA Compliance Form

9 Reference and Work Product Form

10 Contact List Template

11 Commitment and Support Letter Form (letters require signature)

12 EPIC Grants Terms and Conditions for Native American Tribes and Tribal Corporations with Sovereign Immunity

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I. IntroductionA. PURPOSE OF SOLICITATION

The purpose of this solicitation is to fund technology demonstration and deployment (TD&D) projects that meet S14 Strategic Objective - Take Microgrids to the Next Level: Maximize the Value to Customers as defined in the 2015-2017 Triennial Electric Program Investment Charge (EPIC) Investment Plan1.

California’s electric grid is transitioning to clean energy operations and therefore more distributed energy resources (DER) are going to be necessary to meet California’s future grid needs. Also, California’s electric grid must become more reliable, resilient, secure, flexible and adaptable to climate change impacts. In May 2017, the CPUC approved the DER Action Plan2 (California’s Distributed Energy Resources Action Plan: Aligning Vision and Action, May 3, 2017) to lay out a roadmap for the increased application and use of DER on the California grid. DER are “distributed resources” defined in the California Public Utilities Code section 769(a)3 (AB 3274, Sec. 8, Perea, 2013) as renewable generation resources, energy efficiency, energy storage, electric vehicles, and demand response technologies, and generally make up the core elements of any microgrid. Microgrids are one of the most effective tools to implement increased DER penetration. Additionally, microgrids provide end customers with a series of capabilities that are needed in the daily operation of their energy systems. They also provide new mechanisms that improve system reliability and resiliency while reducing greenhouse gases (GHGs). Finally, microgrids can provide end customers with new value streams; revenue opportunities for services such as demand response and wholesale grid services such as a DER aggregator; and support for the local community in times of contingency operations.

As part of first Triennial EPIC Investment Plan, the California Energy Commission (Energy Commission) developed and issued a solicitation (PON 14-3015) that offered EPIC funding for microgrid research and mainly focused on using microgrids to support high penetrations of renewables and the operations of critical facilities such as hospitals, fire stations and regional command centers. This solicitation received 40 proposals and awarded seven microgrid projects (three for high penetrations of renewable resources and four for critical facilities). These ongoing projects address reduction of GHGs, improving reliability, and increasing resiliency to provide critical services in emergency situations. Additionally, they are providing a wealth of information on microgrid configurations, interconnection of different DER through a single controller, and system interconnection challenges. Finally, they are beginning to demonstrate different value streams that can make microgrids a net positive business proposition for similarly situated entities.

1 http://www.energy.ca.gov/research/epic/documents/final_documents_submitted_to_CPUC_2014/2014-04-28_EPIC_Application_to_CPUC.pdf 2 http://www.cpuc.ca.gov/uploadedFiles/CPUC_Public_Website/Content/About_Us/Organization/Commissioners/Michael_J._Picker/DER%20Action%20Plan%20(5-3-17)%20CLEAN.pdf 3 http://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PUC&sectionNum=769 4 https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201320140AB327 5 http://www.energy.ca.gov/contracts/PON-14-301/ August 2017 Page 1 GFO-17-302

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Most of the active microgrid projects awarded under PON 14-301 in 2015 are currently at a point where the equipment is installed and the systems are fully operational, thus facilitating the collection of valuable data on performance, value streams and reliability. Also, the Energy Commission has hosted several public workshops to discuss the overall plans and performances of these projects and has received feedback from industry on the commercial viability of these microgrid demonstrations. The impact of these demonstrations is to increase industry’s knowledge regarding the operations of microgrids and the commercial acceptance of the business cases being developed. Additionally, the Energy Commission has received feedback on other microgrid research activities outside of California and how these projects compare to the EPIC-funded projects. As continuation of these efforts, the Energy Commission with this Grant Funding Opportunity (GFO) is seeking to solicit microgrid demonstrations that will provide a clear path to commercially viable microgrids.

As California transitions to the next phase of realizing the commercial viability of microgrids, it is important to identify opportunities where microgrids can be developed into standardized configurations that are easily repeatable and have defined methodologies to measure and quantify the benefits these microgrids provide the identified end-user or market segment. It is also important to exhibit a clear and definable future market where these microgrids can obtain commercial success. The projects proposed under this GFO will deploy new, permanently-installed microgrids at locations such as military bases, ports, Native American tribes, disadvantaged communities, or other communities, within California investor owned utility (IOU) electric service territories where a microgrid can provide clear and measurable value (for additional information on project focus areas, see Section II.B.2 below, Eligibility Requirements, Project Requirements, Project Focus). The proposed projects must demonstrate the applications of a microgrid where the results from this effort will provide field examples of commercial-scale demonstrations that produce a clear, repeatable, standardized configuration with measurable benefits to end users and a high probability of future commercial success. Additionally, priority will be given to projects with a plan that leverages other (non-EPIC) funding opportunities for future microgrids such as DOD and DOE federal funding, investor backed funding, special purpose funding such as Cap and Trade, new federal infrastructure improvement funds and organizational operating funding as well as other grant opportunities outside EPIC. This GFO’s EPIC funding should demonstrate successful, repeatable prototypes that will improve the opportunity to seek new sources of funding for future microgrid projects.

Projects must fall within the following project groups:

a. Group 1: Demonstration of Standardized High-DER Penetration, Renewable-Based, Resilient and Commercially Viable Microgrids Located at California Military Bases, Ports, and Native American Tribes within IOU Service Territories:

b. Group 2: Demonstration of Standardized High-DER Penetration, Renewable-Based, Resilient and Functional Microgrids located at California Disadvantaged Communities6 within IOU Service Territories; and

c. Group 3: Demonstration of Standardized High-DER Penetration, Renewable-Based, Resilient and Commercially Viable Microgrids in IOU Territories that are not Proposed Either Under Group 1 or Group 2 Projects and Where Microgrids Provide Clear and Definable Added Value to the Selected End User of IOU customers.

6 These are the communities defined as areas representing census tracts scoring in the top 25 % in CalEnviroScreen 3.0. (https://oehha.ca.gov/calenviroscreen/report/calenviroscreen-30)August 2017 Page 2 GFO-17-302

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See Part II of this solicitation for project eligibility requirements. Applications will be evaluated as follows: Stage One consists of proposal screening and Stage Two consists of proposal scoring. A principal grant applicant may only submit one application for this GFO. If the principal applicant submits multiple applications, the Energy Commission staff will randomly select one application to be evaluated, reviewed and scored. Any other application submitted by the same applicant will be returned without additional action. However, there is no limit on the number of applications that an entity can participate in as a subcontractor or match funding partner.

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B. KEY WORDS/TERMS

Word/Term DefinitionApplicant The entity that submits an application to this solicitation

Application An applicant’s written response to this solicitation

CAM Commission Agreement Manager, the person designated by the Energy Commission to oversee the performance of an agreement resulting from this solicitation and to serve as the main point of contact for the Recipient

CAO Commission Agreement Officer

CEQA California Environmental Quality Act, California Public Resources Code Section 21000 et seq.

Days Days refers to calendar days

Disadvantaged Community

These are communities defined as areas representing census tracts scoring in the top 25 % in CalEnviroScreen 3.0. (https://oehha.ca.gov/calenviroscreen/report/calenviroscreen-30)

DER Distributed energy resources are “distributed resources” defined in the California Public Utilities Code section 769(a) (AB 327, Sec. 8, Perea, 2013) as:

(1) distributed renewable generation resources,(2) energy efficiency,(3) energy storage,(4) electric vehicles, and(5) demand response technologies.

Each DER element must be a complete system that provides an independent electric service capability.

EPIC Electric Program Investment Charge, the source of funding for the projects awarded under this solicitation

Energy Commission or Commission

State Energy Resources Conservation and Development Commission or as commonly called, the California Energy Commission

IOU Investor-owned utility, an electrical corporation as defined in in California Public Utilities Code section 218. For purposes of this EPIC solicitation, it includes Pacific Gas and Electric Co., San Diego Gas and Electric Co., and Southern California Edison Co.

Microgrid A group of interconnected loads and distributed energy resources (DER) within clearly defined electrical boundaries that act as a single controllable entity with respect to the grid. Additionally, a microgrid can connect and disconnect from the grid to enable it to operate in both grid-connected or island-mode. Finally, microgrid can also manage customer critical resources and provide the customers,

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Word/Term Definitionutilities and grid system operators different levels of critical services and support as needed.

NOPA Notice of Proposed Award, a public notice by the Energy Commission that identifies award recipients

Pre-Commercial Pre-commercial Technology means a technology that has not reached commercial maturity or been deployed at scales sufficiently large and in conditions sufficiently reflective of anticipated actual operating environments to enable the appraisal of operational and performance characteristics, or of financial risks.

Pilot Test Pilot test means small scale testing in the laboratory or testing on a small portion of the production line of the affected industry. Pilot tests help to verify the design and validity of an approach, and adjustments can be made at this stage before full-scale demonstrations

Principal Investigator The technical lead for the applicant’s project, who is responsible for overseeing the project; in some instances, the Principal Investigator and Project Manager may be the same person

Project Manager The person designated by the applicant to oversee the project and to serve as the main point of contact for the Energy Commission

Project Partner An entity or individual that contributes financially or otherwise to the project (e.g., match funding, provision of a test, demonstration or deployment site), and does not receive Energy Commission funds

Recipient An entity receiving an award under this solicitation

Renewable Generation Resources

Resources listed in the California Public Resources Code section 25741(a)(1), which are biomass, solar thermal, photovoltaic, wind, geothermal, fuel cells using renewable fuels, small hydroelectric generation of 30 megawatts or less, digester gas, municipal solid waste conversion, landfill gas, ocean wave, ocean thermal, or tidal current technology. Pursuant to the California Public Utilities Code section 2827(b)(11), a small hydroelectric generation facility is not an eligible renewable generation facility if it will cause an adverse impact on instream beneficial uses or cause a change in the volume or timing of streamflow.

Solicitation This entire document, including all attachments, exhibits, any addendum and written notices, and questions and answers (“solicitation” may be used interchangeably with “Grant Funding Opportunity”)

State State of California

TRL Technology Readiness Level

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C. APPLICANTS’ ADMONISHMENT This solicitation contains application requirements and instructions. Applicants are responsible for carefully reading the solicitation, asking appropriate questions in a timely manner, ensuring that all solicitation requirements are met, submitting all required responses in a complete manner by the required date and time, and carefully rereading the solicitation before submitting an application. In particular, please carefully read the Screening/Scoring Criteria and Grounds for Rejection in Part IV, and the terms and conditions that correspond to applicant’s organization: (1) University of California and California State University terms and conditions; (2) U.S. Department of Energy terms and conditions; (3) standard terms and conditions; or (4) Native American tribes and tribal corporations with sovereign immunity terms and conditions. The terms and conditions for (1) to (3) are located at: http://www.energy.ca.gov/research/contractors.html and the terms and conditions for (4) is in Attachment 12.

Applicants are solely responsible for the cost of developing applications. This cost cannot be charged to the State. All submitted documents will become publicly available records upon the posting of the Notice of Proposed Award.

D. ADDITIONAL REQUIREMENTS

1. Time is of the essence. Funds available under this solicitation have encumbrance deadlines as early as June 30, 2018. Prior to approval of a proposed award, the Energy Commission must comply with the California Environmental Quality Act (CEQA), and other applicable environmental review requirements. In general, the Energy Commission is required to make its own independent CEQA determination and the level of review required by CEQA depends on the facts of the specific project.

To comply with CEQA, the Commission must have CEQA-related information from applicants and sometimes other entities, such as local governments, in a timely manner. Applicants recommended for funding in the NOPA must submit pertinent information well in advance of April 30, 2018 or risk having their projects not funded. Unfortunately, even with this information, the Commission may not be able to complete its CEQA review prior to the encumbrance deadline for every project. If, for example, a project requires an Environmental Impact Report, the process to complete it can take many months. For these reasons, it is critical that applicants organize project proposals in a manner that minimizes the time required for the Commission to comply with CEQA, and other applicable environmental review requirements, and provide all related information to the Commission in a timely manner such that the Commission is able to complete its review in time for it to meet its encumbrance deadline. If another agency has already made a CEQA determination as the lead agency, that may expedite the Energy Commission’s review. For this reason, in the proposal package, it may be helpful for applicants to include already received permits and associated CEQA determinations from other agencies (e.g., a local agency where the project will take place). Otherwise, to maintain the schedule for a grant agreement to be approved at the business meeting in April 2018, it is

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recommended that applicants submit all CEQA documentation including a CEQA determination already made by a lead agency to the Energy Commission as soon as possible and no later than 30 calendar days after the NOPA is posted. Earlier is better.

Applicants recommended for funding in the NOPA can improve the chance that the Commission will approve their projects by submitting their proposed microgrid projects to the local or other appropriate agency with jurisdiction over the project and obtaining a CEQA determination from that lead agency in advance of the Commission’s review.

2. Reservation of right to cancel proposed award. In addition to any other right reserved to it under this solicitation or that it otherwise has, if the Energy Commission determines, in its sole and absolute discretion, that the CEQA or other environmental review associated with a proposed project would not likely be completed prior to the encumbrance deadline referenced above, and that the Commission’s ability to meet its encumbrance deadline may thereby be jeopardized, the Energy Commission may cancel a proposed award and award funds to the next highest scoring applicant, regardless of the originally proposed applicant’s diligence in submitting information and materials for CEQA or other environmental review. Examples of situations that may arise related to environmental review include but are not limited to:

Example 1: If another state agency or local jurisdiction, such as a city or county, has taken the role of lead agency under CEQA, the Energy Commission’s review may be delayed while waiting for a determination from the lead agency.

Example 2: If the proposed work is part of a larger project for which a detailed environmental analysis has been or will be prepared by another state agency or local jurisdiction, the Energy Commission’s review may be delayed as a result of waiting for a supplemental or initial analysis, respectively, from the other agency.

Example 3: If the nature of the proposed work is such that a project is not categorically or otherwise exempt from the requirements of CEQA, and an initial study or other detailed environmental analysis appears to be necessary, the Energy Commission’s review, or the lead agency’s review, may take longer than the time available to encumber the funds. If an initial study or environmental impact report has already been completed by another state agency or a local jurisdiction, serving as the lead agency, the applicant must ensure that such an analysis covers the work in the proposed project, or must obtain a revised analysis and determination from the lead agency reviewing the proposed project.

Example 4: If the proposed project clearly falls under a statutory or categorical exemption, or is project for which another state agency or local jurisdiction has already adopted a CEQA finding that the project will cause no significant effect on the environment, the project will

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likely have greater success in attaining rapid completion of CEQA requirements.

The above examples are not exhaustive of instances in which the Energy Commission may or may not be able to comply with CEQA or other environmental review requirements within the encumbrance deadline, and are only provided as further clarification for potential applicants. Please plan project proposals accordingly.

E. BACKGROUND

1. Electric Program Investment Charge (EPIC) ProgramThis solicitation will award projects funded by the EPIC, an electricity ratepayer surcharge established by the California Public Utilities Commission (CPUC) in December 2011.7 The purpose of the EPIC program is to benefit the ratepayers of three investor-owned utilities (IOUs), including Pacific Gas and Electric Co., San Diego Gas and Electric Co., and Southern California Edison Co. The EPIC funds clean energy technology projects that promote greater electricity reliability, lower costs, and increased safety.8 In addition to providing IOU ratepayer benefits, funded projects must lead to technological advancement and breakthroughs to overcome the barriers that prevent the achievement of the state’s statutory energy goals.9 The EPIC program is administered by the California Energy Commission and the IOUs.

2. Program Areas, Strategic Objectives, and Funding InitiativesEPIC projects must fall within the following program areas identified by the CPUC:

Applied research and development; Technology demonstration and deployment; and Market facilitation

In addition, projects must fall within one of the general focus areas (“strategic objectives”) identified in the Energy Commission’s EPIC Investment Plans10 11 and within one or more specific focus areas (“funding initiatives”) identified in the plan. This solicitation targets the following program area, strategic objective, and funding initiative:

2015-2017 EPIC Investment Plan

7 See CPUC “Phase 1” Decision 11-12-035, December 15, 2011, http://docs.cpuc.ca.gov/PublishedDocs/WORD_PDF/FINAL_DECISION/156050.PDF.8 See CPUC “Phase 2” Decision 12-05-037, May 24, 2012, http://docs.cpuc.ca.gov/PublishedDocs/WORD_PDF/FINAL_DECISION/167664.PDF.9 California Public Resources Code, Section 25711.5(a), https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PRC&sectionNum=25711 .10 2012-14 EPIC Triennial Investment Plan, http://www.energy.ca.gov/research/epic/documents/final_documents_submitted_to_CPUC/2012-11-01_EPIC_Application_to_CPUC.pdf (Attachment 1), as modified and approved by CPUC Decision 13-11-025, http://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M081/K773/81773445.PDF 11 2015-17 EPIC Triennial Investment Plan, http://www.energy.ca.gov/2014publications/CEC-500-2014-038/CEC-500-2014-038-CMF.pdf, as modified and approved by CPUC Decision 15-04-020, http://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M151/K183/151183650.PDF. August 2017 Page 8 GFO-17-302

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Program Area: Technology Demonstration and Deployment Strategic Objective S14: Take Microgrids to the Next Level: Maximize the Value to

Customers.o Funding Initiative S14.1: Use Microgrids to Evaluate a Combination of

Emerging Technologies to Determine the Best Integrated Performance and Least Cost Configuration to Meet the Customers Energy Needs.

3. Applicable Laws, Policies, and Background Documents This solicitation addresses the energy goals described in the following laws, policies, and background documents.

Laws/Regulations

Assembly Bill (AB) 3212 - Global Warming Solutions Act of 2006 AB 32 created a comprehensive program to reduce greenhouse gas (GHG) emissions in California. GHG reduction strategies include a reduction mandate of 1990 levels by 2020 and a cap-and-trade program. AB 32 also required the California Air Resources Board (ARB) to develop a Scoping Plan that describes the approach California will take to reduce GHGs. ARB must update the plan every five years.

Additional information: http://www.arb.ca.gov/cc/ab32/ab32.htm

Applicable Law: California Health and Safety Code §§ 38500 et. seq.

Senate Bill (SB) X1-213 - Renewables Portfolio Standard,SB X1-2 expanded California’s Renewables Portfolio Standard (RPS) goals and requires retail sellers of electricity and local publicly owned electric utilities to increase their procurement of eligible renewable energy resources to 20 % by the end of 2013, 25 % by the end of 2016, and 33 % by the end of 2020.

Applicable Law: California Public Utilities Code § 399.11 et seq.

AB 758, Building Efficiency14 AB 758 requires the Energy Commission to collaborate with the California Public Utilities Commission and stakeholders to develop a comprehensive program to achieve greater energy and water savings in existing residential and nonresidential buildings. The Energy Commission developed a Existing Buildings Energy Action Plan in August 2015.

Additional information: http://www.energy.ca.gov/ab758/

Applicable Law: California Public Resources Code § 25943, California Public Utilities Code §§ 381.2 and 385.2

AB 110915 California Lighting Efficiency and Toxics Reduction Act, AB 1109 places restrictions on the manufacture and sale of certain general purpose lights (i.e., lamps, bulbs, tubes, and other electric devices that provide functional illumination for indoor and outdoor use) that contain hazardous substances. It also

12 AB 32 (Statutes of 2006, chapter 488)13 SBX 1-2 (Statutes of 2011, first extraordinary session, chapter 1)14 AB 758 (Statutes of 2009, chapter 470) 15 AB 1109 (Statutes of 2007, chapter 534)August 2017 Page 9 GFO-17-302

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requires the Energy Commission to adopt minimum energy efficiency standards for general purpose lights and to make recommendations to the Governor and Legislature regarding the continuation of reduced lighting consumption beyond 2018.

Additional Information: http://www.energy.ca.gov/2014publications/CEC-500-2014-039/CEC-500-2014-039.pdf

Applicable Law: California Health and Safety Code §§ 25210.9 et. seq., California Public Resources Code § 25402.5.4

AB 251416 - Energy Storage Systems, AB 2514 required the CPUC to determine targets for the procurement of viable, cost-effective energy storage systems by load-serving entities. The CPUC adopted the procurement targets in Decision 13-10-040, issued on October 17, 2013 (see the summary of Decision 13-10-040 in the “Policies/Plans” section below).

Additional information: http://www.cpuc.ca.gov/general.aspx?id=3462

Applicable Law: California Public Utilities Code §§ 2835 et. seq., and § 9620 (http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=200920100AB2514)

SB X7-717- Water Conservation Act, SB X7-7 requires the State to to achieve a 20% reduction in urban per capita water use by December 31, 2020. It requires all retail urban water suppliers to increase water use efficiency and to establish urban water use targets.

Additional Information: http://www.bsc.ca.gov/; http://www.energy.ca.gov/appliances/

Applicable Law: California Code of Regulations, Title 20, Division 2, Chapter 4, Article 4, §§ 1601 et. seq.

SB 35018 Clean Energy and Pollution Reduction Act of 2015, SB 350 does the following: 1) expands California’s RPS goals and requires retail sellers of electricity and local publicly owned electricity to increase their procurement of eligible renewable energy resources to 40 % by the end of 2024, 45 % by the end of 2027, and 50 % by the end of 2030; 2) requires the Energy Commission to establish annual targets for statewide energy efficiency savings in electricity and natural gas final end uses of retail customers by January 1, 2030; and 3) provide for transformation of the Independent System Operator into a regional organization. SB 350 also established California’s 2030 greenhouse gas reduction target of 40 % below 1990 levels.

Additional information: http://www.leginfo.ca.gov/pub/15-16/bill/sen/sb_0301-0350/sb_350_bill_20151007_chaptered.htm

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California Energy Code

The Energy Code is a component of the California Building Standards Code, and is published every three years through the collaborative efforts of state agencies including the California Building Standards Commission and the Energy Commission. The Code ensures that new and existing buildings achieve energy efficiency and preserve outdoor and indoor environmental quality through use of the most energy efficient technologies and construction.

Additional information: http://www.energy.ca.gov/title24/

Applicable Law: California Code of Regulations, Title 24, Part 6 and associated administrative regulations in Part 1

Policies/Plans

Governor’s Clean Energy Jobs Plan (2011)In June 2011, Governor Jerry Brown announced a plan to invest in clean energy and increase efficiency. The plan includes a goal of producing 20,000 megawatts (MW) of renewable electricity by 2020 by taking the following actions: addressing peak energy needs, developing energy storage, creating efficiency standards for buildings and appliances, and developing combined heat and power (CHP) projects. Specific goals include building 8,000 MW of large-scale renewable and transmission lines, 12,000 MW of localized energy, and 6,500 MW of CHP.

Additional information: http://gov.ca.gov/docs/Clean_Energy_Plan.pdf

Bioenergy Action Plan (2012)Various California state agencies developed the 2012 Bioenergy Action Plan to accelerate clean energy development, job creation, and protection of public health and safety. The plan recommends actions to increase the sustainable use of organic waste, expand research and development of bioenergy facilities, reduce permitting and regulatory challenges, and address economic barriers to bioenergy development.

Additional information: http://resources.ca.gov/docs/Final_Bioenergy_Action_Plan__ARB__-_press_release_8-22-12.pdf

Integrated Energy Policy Report (Biennial)California Public Resources Code Section 25302 requires the Energy Commission to release a biennial report that provides an overview of major energy trends and issues facing the state. The IEPR assesses and forecasts all aspects of energy industry supply, production, transportation, delivery, distribution, demand, and pricing. The Energy Commission uses these assessments and forecasts to develop energy policies. The 2015 IEPR included a multi-agency hearing on drought response and provided recommendations for future research and analysis areas.

Additional information: http://www.energy.ca.gov/energypolicyApplicable Law: California Public Resources Code § 25300 et seq.

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CPUC Decision 13-10-040, “Decision Adopting Energy Storage Procurement Framework and Design Program” (2013)The Decision establishes policies and mechanisms for energy storage procurement, as required by AB 2514 (described above). The IOU procurement target is 1,325 megawatts of energy storage by 2020, with installations required no later than the end of 2024.

Additional information: http://www.cpuc.ca.gov/uploadedfiles/cpuc_public_website/content/about_us/organization/former_commissioners/peevey(1)/news_and_announcements/ferron_peevey_concurrence_storaged1310040.pdf

CPUC’s Energy Efficiency Strategic Plan (2008)The Energy Efficiency Strategic Plan creates a roadmap for achieving energy efficiency within the residential, commercial, industrial, and agricultural sectors. The plan was updated in January 2011 to include a lighting chapter.

Additional information: http://www.cpuc.ca.gov/general.aspx?id=4125

New Residential Zero Net Energy Action Plan 2015-2020The Residential New Construction Zero Net Energy Action Plan supports the California Energy Efficiency Strategic Plan’s goal to have 100 % of new homes achieve zero net energy beginning in 2020. The action plan provides a foundation for the development of a robust and self-sustaining zero net energy market for new homes.

Additional information: http://www.californiaznehomes.com/

California’s Existing Buildings Energy Efficiency Action PlanThe Existing Buildings Energy Efficiency Action Plan provides a 10-year roadmap to activate market forces and transform California’s existing residential, commercial, and public building stock into high performing and energy efficient buildings. The Plan provides a comprehensive framework centered on five goals, each with an objective and a series of strategies to achieve it. Each strategy includes industry and/or government implementation partners. Water related items are addressed in several of the strategies from the Existing Buildings Energy Efficiency Action Plan including but not limited to strategies 1.5, 2.2, 4.1, and 5.7 from the plan.

Additional Information: http://docketpublic.energy.ca.gov/PublicDocuments/15-IEPR-05/TN203806_20150310T093903_California%E2%80%99s_Existing_Buildings_Energy_Efficiency_Action_Plan.pdf

CPUC – Water Energy Nexus ProceedingThe CPUC recently authorized a series of pilot programs exploring whether energy savings may be realized through water conservation measures. Implicit in this approach is the concept that saving water saves energy.   The CPUC’s Energy Division is currently analyzing whether an increase in energy efficiency portfolio emphasis on measures that maximize energy savings in the water sector – such as through leak loss detection and enhancement of water systems efficiency – may be warranted.  The Energy Division is

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also currently considering how cost effectiveness should be analyzed for water/energy nexus programs.

CPUC Rulemaking 13-12-011 grants the Petition for Rulemaking of the Division of Ratepayer Advocates requesting that the CPUC open a Rulemaking proceeding to develop a partnership framework between investor owned energy utilities and the water sector to co-fund programs that reduce energy consumption by the water sector in supplying, conveying, treating, and distributing water

Additional Information: http://www.cpuc.ca.gov/general.aspx?id=4139

Executive Order B-29-15

Governor Brown’s Executive Order B-29-15 proclaims the severity of the drought conditions in California and directs the Energy Commission to invest in new technologies that will achieve water and energy savings and greenhouse gas reductions.

Executive Order B-30-15

Governor Brown’s Executive Order B-30-15 established a new interim statewide greenhouse gas emission reduction target to reduce greenhouse gas emissions to 40 % below 1990 levels by 2030, to ensure California meets its target of reducing greenhouse gas emissions to 80 % below 1990 levels by 2050.

The Governor's State of Emergency Proclamation on Tree MortalityThe declaration released on October 30, 2015, declared a state of emergency and sought federal action to help mobilize additional resources for the safe removal of dead and dying trees. It also states, “The California Energy Commission shall prioritize grant funding from the Electric Program Investment Charge for woody biomass-to-energy technology development and deployment, consistent with direction from the California Public Utilities Commission.”

Additional Information:

https://www.gov.ca.gov/docs/10.30.15_Tree_Mortality_State_of_Emergency.pdf

Reference Documents

Refer to the link below for information about past Energy Commission research projects and activities: http://www.energy.ca.gov/research/

Refer to the documents below for information about activities associated with information on California Microgrid Roadmap: http://www.energy.ca.gov/research/microgrid/

F. FUNDING

1. Amount Available and Minimum/ Maximum Funding Amounts

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There is up to $44,700,000 available for grants awarded under this solicitation. The total, minimum, and maximum funding amounts for each project group are listed below.

Project Group Available funding

Minimum award amount

Maximum award amount

Minimum match funding amount (% of EPIC Funds Requested)

Group 1: Demonstration of Microgrids Located at California Military Bases, Ports, and Native American Tribes.

$22,000,000

$2,000,000

$5,000,000

(If the applicant can meet special conditions, the maximum award amount is $7,000,000)*

20% if the requested EPIC project fund is $5,000,000 or less.

25% if the requested EPIC project fund is more than $5,000,000 but not exceeding $7,000,000.

Group 2: Demonstration of Microgrids Located at California Disadvantaged Communities.

$11,700,000

Group 3: Demonstration of Commercially Viable Microgrids Located at Other Locations.

$11,000,000

*If the proposal can demonstrate, to Energy Commission staff’s satisfaction and in their sole discretion, the benefits and values of linking several microgrids together to reach higher capabilities and a more rapid commercialization, the applicant can request up to $7,000,000 in EPIC funds. This option must 1) include a match funding in the amount of at least 25% of the requested EPIC project fund; and 2) not be simply a bigger microgrid but rather a new configuration of multiple microgrids that provide clear benefits and higher economic potential. It is the responsibility of the applicant to make the case for the additional funding by defining how this new configuration has definable value and viable market benefits beyond a single microgrid. The microgrids may be co-located or connected virtually as long as joining of the microgrids provides a clear and definable greater benefits and values than each microgrid would provide on its own to end-users.

For purposes of this GFO, any proposal requesting an amount of $5,000,000 or less is called the “Primary Application” and any proposal requesting an amount more than $5,000,000 but not exceeding $7,000,000 is called “Option 1”. Any applicant wishing to apply for funding amount more than $5,000,000 but not exceeding $7,000,000 must also present a proposal, in the same application, for $5,000,000 or less. Applications that are only for $5,000,000 or less are allowable, but applications are not allowed for only between $5,000,000 and $7,000,000. In the latter case, applicants must describe the two scenarios (the Primary Application as well as Option 1) as part of their application package.

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Application and identify it as Option 1 (a separate application will not be accepted for the expanded effort, it must be Option 1 to the Primary Application):

a. Option 1 must include all of the necessary additional information to fully define the new elements of Option 1, including changes to the budget, project narrative, scope of work, deliverables, and any other changes to the Primary Application that must be provided to properly evaluate Option 1.

b. Option 1 of the Primary Application must include at least one additional microgrid system that is related to or a repeat of the microgrid system submitted in the Primary Application. The additional microgrid or microgrids do not have to be directly connected to the primary microgrid controller.

c. It is the responsibility of the applicant to clearly differentiate the value of the “Primary Application” from the added value of funding the “Primary Application plus Option 1”. The Primary Application plus Option 1 must delineate that adding Option 1 demonstrates features, capabilities and values that will improve the overall value of the combined demonstration such that the probability of future commercial success of the proposed microgrid system is higher with Option 1 included than without it.

d. Option 1 to the Primary Application must demonstrate clear and distinct benefits above and beyond what is being demonstrated in the primary application. The benefits section of the application must define the benefits of the Primary Application and then in a separate section, define the additional benefits of Option 1.   

e. The Energy Commission will score the Primary Application first. If the Primary Application receives a passing score, the Energy Commission will evaluate and score Option 1. If the Primary Application does not receive a passing score, Option 1 will not be scored. Only one of the two possible options (Primary Application or Primary Application plus Option 1) can be recommended for funding.

f. The Primary Application plus Option 1 must meet all the GFO requirements, including but not limited to the agreement execution timelines, agreement performance period, timely CEQA review for all elements of the Primary Application and Option 1, 12-month performance data collection period for all elements of the Primary Application and Option 1.

g. If selected for funding by the Energy Commission, the minimum amount of the match funding required for the Primary Application plus Option 1 is 25% of the requested EPIC fund. If only the Primary Application is selected, then the minimum amount of match funding required is 20% of the requested EPIC fund.

2. Match Funding RequirementMatch funding is required in the amount of at least 20% of the requested EPIC project fund if the requested EPIC project fund is $5,000,000 or less or 25% of the requested EPIC project fund if the requested EPIC project fund is more than $5,000,000 but not exceeding $7,000,000. Applicants that provide more than this match funding amount will receive additional points during the scoring phase (See Part IV).

“Match funds” include the following if used for project expenses: (1) “cash in hand” funds; (2) equipment; (3) materials; (4) information technology services; (5) travel; (6) subcontractor costs; (7) contractor/project partner in-kind labor costs; and (8) “advanced practice” costs. Match funding sources include the prime contractor, subcontractors, and pilot testing/demonstration/deployment sites (e.g., test site staff services).

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“Match funds” do not include: Energy Commission awards, EPIC funds received from other sources, uncommitted future or contingent funds from other public or private entities, the cost or value of the project work site, or the cost or value of existing structures or other existing improvements affixed to the project work site permanently or for an indefinite period of time (e.g., photovoltaic systems).

Definitions of “match funding” categories are listed below.

o “Cash in hand” Funds means funds that are in the recipient’s possession and are reserved for the proposed project, meaning that they have not been committed for use or pledged as match for any other project. “Cash in hand” funds include funding awards earned or received from other agencies for the proposed technologies or study (but not for the identical work). Proof that the funds exist as cash is required. Cash in hand funds will be considered more favorably than other types of match funding during the scoring phase.

o “Equipment” means an item with a unit cost of at least $5,000 and a useful life of at least one year. Purchasing equipment with match funding is encouraged because there are no disposition requirements at the end of the agreement for such equipment. Typically, grant recipients may continue to use equipment purchased with Energy Commission funds if the use is consistent with the intent of the original agreement.

o “Materials” means tangible project items that cost less than $5,000 and have a useful life of less than one year.

o “Information Technology Services” means the design, development, application, implementation, support, and management of computer-based information systems directly related to the tasks in the Scope of Work. All information technology services in this area must comply with the electronic file format requirements in Subtask 1.1 (Products) of the Scope of Work (Attachment 6).

o “Travel” means all travel required to complete the tasks identified in the Scope of Work. Travel includes in-state and out-of-state travel, and travel to conferences. Use of match funds for out-of-state travel and travel to conferences is encouraged because the Energy Commission might not approve the use of its funds for such travel.

o “Subcontractor Costs” means all costs incurred by subcontractors for the project, including labor and non-labor costs.

o “Contractor/Project Partner In-Kind Labor Costs” means contractor or project partner labor costs that are not charged to the Energy Commission.

o “’Advanced Practice’ Costs” means costs not charged to the Energy Commission that represent the incremental cost difference between standard and advanced practices, measures, and products used to implement the proposed project. For example, if the cost of purchasing and/or installing insulation that meets the applicable building energy efficiency standard is $1/square foot and the cost of more advanced, energy efficient insulation is $3/square foot, the Recipient may count up to $2/square foot as match funds.

Match funds must be spent only during the agreement term. Match funds also must be reported in invoices submitted to the Energy Commission. All applicants providing match funds must submit commitment letters that: (1) identify the source(s) of the

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funds; (2) justify the dollar value claimed; (3) provide an unqualified (i.e., without reservation or limitation) commitment that guarantees the availability of the funds for the project; and (4) provide a strategy for replacing the funds if they are significantly reduced or lost. Please see Attachment 11, Commitment and Support Letter Form. Commitment and support letters must be submitted with the application to be considered.

Since this GFO is specifically reaching out to military bases and other government agencies and local organizations that usually operate under budgets that are approved on an annual fiscal year basis, it is not possible for these organizations to verify proposed future match funding availability until the actual future fiscal year budget is approved by their approving organization.  This normally presents a problem when providing proposed match funding from these future years.  For this GFO, if the military or other agency need to rely on future approved budgets to meet the required match funding, the applicants must provide a letter from their appropriate agency budgeting office that clearly states the proposed future fiscal funding is in their internal requested budget documents and it is reasonable to assume that the organization should receive those funds when the future year budget is approved.  If awarded a grant and later it is determined that these proposed match funding are not approved, it is up to the awardee and their partners in the project to make all possible attempts to obtain new additional match funding to replace the amount that was not approved.

3. Change in Funding AmountAlong with any other rights and remedies available to it, the Energy Commission reserves the right to: Increase or decrease the available funding and the group minimum/maximum award

amounts described in this section. Allocate any additional or unawarded funds to passing applications, in rank order. Reduce funding to an amount deemed appropriate if the budgeted funds do not

provide full funding for agreements. In this event, the Recipient and Commission Agreement Manager will reach agreement on a reduced Scope of Work commensurate with available funding.

G. KEY ACTIVITIES SCHEDULE

Key activities, dates, and times for this solicitation and for agreements resulting from this solicitation are presented below. An addendum will be released if the dates change for activities that appear in bold.

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ACTIVITY DATE TIME19

Solicitation Release 08/04/2017

First Pre-Application Workshop 08/17/2017 2:00 pm

Second Pre-Application Workshop 08/23/2017 10:00 am

Deadline for Written Questions20 08/25/2017 5:00 p.m.

Anticipated Distribution of Questions and Answers week of 10/09/2017

Deadline to Submit Applications 10/31/2017 11/9/2017

5:00 p.m.

Anticipated Notice of Proposed Award Posting Date 01/17/2018

Anticipated Energy Commission Business Meeting Date 04/11/2018

Anticipated Agreement Start Date 06/04/2018

Anticipated Agreement End Date June 30, 2022

H. NOTICE OF PRE-APPLICATION WORKSHOPS

Energy Commission staff will hold two Pre-Application Workshops to discuss the solicitation with potential applicants. Participation is optional but encouraged. Applicants may attend the workshop in-person, via the internet (WebEx, see instructions below), or via conference call on the date and at the time and location listed below. Please call (916) 654-4381 or refer to the Energy Commission's website at www.energy.ca.gov/contracts/index.html to confirm the date and time.

First Pre-Application Workshop

Date and time: August 17, 2017 at 2:00 pm Location: California Energy Commission

1516 9th StreetSacramento, CA 95814 Art Rosenfeld Hearing Room

Wheelchair Accessible

WebEx Instructions:

19 Pacific Standard Time or Pacific Daylight Time, whichever is being observed.20 This deadline does not apply to non-technical questions (e.g., questions concerning application format requirements or attachment instructions) or to questions that address an ambiguity, conflict, discrepancy, omission, or other error in the solicitation. Such questions may be submitted to the Commission Agreement Officer listed in Section I at any time prior to the application deadline. Please see Section I for additional information.August 2017 Page 18 GFO-17-302

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To join the WebEx meeting, go to https://energy.webex.com and enter the meeting number and password below:

Meeting Number: 925 624 230 Meeting Password: no password requiredTopic: Demonstrate Business Case for Advanced Microgrids in Support of California’s Energy and GHG Policies

To Logon with a Direct Phone Number : After logging into WebEx, a prompt will appear on-screen for a phone number. In the “Number” box, enter your area code and phone number and click “OK” to receive a call for the audio of the meeting. International callers

may use the "Country/Region" button to help make their connection.

To Logon with an Extension Phone Number : After you login, a prompt will ask for your phone number. Select “CANCEL.” Call 1-866-469-3239 (toll-free in the U.S. and Canada). When prompted, enter the meeting number above and the unique Attendee ID number listed in the top left area of the screen after login. International callers may dial in using the “Show all global call-in numbers” link (also in the top left area).

Telephone Access Only:Call 1-866-469-3239 (toll-free in the U.S. and Canada). When prompted, enter the meeting number above. International callers may select their number from https://energy.webex.com/energy/globalcallin.php.

Technical Support: For assistance with problems or questions about joining or attending the meeting,

please call WebEx Technical Support at 1-866-229-3239. You may also contact Rick Alexander at (916) 651-9852.

System Requirements: To determine whether your computer is compatible, visit:http://support.webex.com/support/system-requirements.html.

Meeting Preparation: The playback of UCF (Universal Communications Format) rich media files requires appropriate players. Please determine whether the players are installed on your computer by visiting: https://energy.webex.com/energy/systemdiagnosis.php.

If you have a disability and require assistance to participate, please Poneh Jones by e-mail at poneh.jones@energy.ca.gov or (916) 654-4425 at least five days in advance,

Second Pre-Application Workshop

Date and time: August 23, 2017 at 10:00 am Location: Los Angeles Cleantech Incubator (LACI)

525 South Hewitt StLos Angeles, CA 90013Room TR 401

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Wheelchair Accessible

WebEx Instructions: To join the WebEx meeting, go to https://energy.webex.com and enter the meeting

number and password below:

Meeting Number: 924 680 444 Meeting Password: no password requiredTopic: Demonstrate Business Case for Advanced Microgrids in Support of California’s Energy and GHG Policies

To Logon with a Direct Phone Number : After logging into WebEx, a prompt will appear on-screen for a phone number. In the “Number” box, enter your area code and phone number and click “OK” to receive a call for the audio of the meeting. International callers

may use the "Country/Region" button to help make their connection.

To Logon with an Extension Phone Number : After you login, a prompt will ask for your phone number. Select “CANCEL.” Call 1-866-469-3239 (toll-free in the U.S. and Canada). When prompted, enter the meeting number above and the unique Attendee ID number listed in the top left area of the screen after login. International callers may dial in using the “Show all global call-in numbers” link (also in the top left area).

Telephone Access Only:Call 1-866-469-3239 (toll-free in the U.S. and Canada). When prompted, enter the meeting number above. International callers may select their number from https://energy.webex.com/energy/globalcallin.php.

Technical Support: For assistance with problems or questions about joining or attending the meeting,

please call WebEx Technical Support at 1-866-229-3239. You may also contact Rick Alexander at (916) 651-9852.

System Requirements: To determine whether your computer is compatible, visit:http://support.webex.com/support/system-requirements.html.

Meeting Preparation: The playback of UCF (Universal Communications Format) rich media files requires appropriate players. Please determine whether the players are installed on your computer by visiting: https://energy.webex.com/energy/systemdiagnosis.php.

If you have a disability and require assistance to participate, please Poneh Jones by e-mail at poneh.jones@energy.ca.gov or (916) 654-4425 at least five days in advance,

I. QUESTIONS

During the solicitation process, direct questions to the Commission Agreement Officer listed below:

Crystal Presley-Willis, Commission Agreement OfficerCalifornia Energy Commission

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1516 Ninth Street, MS-18Sacramento, California 95814

Telephone: (916) 653-6110FAX: (916) 654-4423

E-mail: Crystal.Presley-Willis@energy.ca.gov

Applicants may ask questions at the Pre-Application Workshop, and may submit written questions via mail, electronic mail, and by FAX. However, all technical questions must be received by the deadline listed in the “Key Activities Schedule” above. Questions received after the deadline may be answered at the Energy Commission's discretion. Non-technical questions (e.g., questions concerning application format requirements or attachment instructions) may be submitted to the Commission Agreement Officer (CAO) at any time prior the application deadline.

A question and answer document will be e-mailed to all parties who attended the Pre-Application Workshop and provided their contact information on the sign-in sheet. The questions and answers will also be posted on the Commission’s website at: http://www.energy.ca.gov/ contracts/index.html.

If an applicant discovers a conflict, discrepancy, omission, or other error in the solicitation at any time prior to the application deadline, the applicant may notify the Energy Commission in writing and request modification or clarification of the solicitation. The Energy Commission, at its discretion will provide modifications or clarifications by either an addendum to the solicitation or by written notice to all entities that requested the solicitation. At its discretion, the Energy Commission may, in addition to any other actions it may choose, re-open the question/answer period to provide all applicants the opportunity to seek any further clarification required.

Any verbal communication with a Commission employee concerning this solicitation is not binding on the State and will in no way alter a specification, term, or condition of the solicitation. Therefore, all communication should be directed in writing to the assigned CAO.

II. Eligibility RequirementsA. APPLICANT REQUIREMENTS

1. EligibilityThis solicitation is open to all entities with the exception of local publicly-owned electric utilities.21

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A principal grant applicant may only submit one application for this GFO. If the principal applicant submits multiple applications, the Energy Commission staff will randomly select one application to be evaluated, reviewed and scored. Any other application submitted by the same applicant will be returned without additional action. However, there is no limit on the number of applications that an entity can participate in as a subcontractor or match funding partner.

2. Terms and Conditions

Each grant agreement resulting from this solicitation will include terms and conditions that set forth the recipient’s rights and responsibilities. By signing the Application Form (Attachment 1), each applicant agrees to enter into an agreement with the Energy Commission to conduct the proposed project according to the terms and conditions that correspond to its organization, without negotiation: (1) University of California and California State University terms and conditions; (2) U.S. Department of Energy terms and conditions; (3) standard terms and conditions; or (4) Native American tribes and tribal corporations with sovereign immunity terms and conditions. The terms and conditions for (1) to (3) are located at http://www.energy.ca.gov/research/contractors.html and the terms and conditions for (4) is in Attachment 12. Failure to agree to the terms and conditions by taking actions such as failing to sign the Application Form or indicating that acceptance is based on modification of the terms will result in rejection of the application. Applicants must read the terms and conditions carefully. The Energy Commission reserves the right to modify the terms and conditions prior to executing grant agreements. If a Native American tribe or tribal corporation with sovereign immunity is proposed as an awardee under this solicitation, the tribe must, prior to agreement execution, pass a resolution agreeing to accept the terms and conditions and delegating authority to execute the agreement to an appropriate individual (see Exhibit E in Attachment 12).

3. California Secretary of State Registration

All corporations, limited liability companies (LLCs), limited partnerships (LPs) and limited liability partnerships (LLPs) that conduct intrastate business in California are required to be registered and in good standing with the California Secretary of State prior to its project being recommended for approval at an Energy Commission Business Meeting.  If not currently registered with the California Secretary of State, applicants are encouraged to contact the Secretary of State’s Office as soon as possible to avoid potential delays in beginning the proposed project(s) (should the application be successful).  For more information, contact the Secretary of State’s Office via its website at www.sos.ca.gov.  Sole proprietors using a fictitious business name must be registered with the appropriate county and provide evidence of registration to the Energy Commission prior to their project being recommended for approval at an Energy Commission Business Meeting.

4. Disadvantaged CommunitiesIn 2012, the Legislature passed Senate Bill 535 (De León) directing that, in addition to reducing greenhouse gas emissions, a quarter of the proceeds from the Greenhouse Gas Reduction Fund must also go to projects that provide a benefit to disadvantaged communities. The legislation gives the California Environmental Protection Agency responsibility for identifying those communities.

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For more information on disadvantaged communities and to determine if your project is in a disadvantaged community, use the California Communities Environmental Health Screening tool (CalEnviroScreen 3.0): https://oehha.ca.gov/calenviroscreen/report/calenviroscreen-30

B. PROJECT REQUIREMENTS

1. Technology Demonstration and Deployment StageProjects must fall within the “technology demonstration and deployment” stage, which involves the installation and operation of pre-commercial technologies or strategies at a scale sufficiently large and in conditions sufficiently reflective of anticipated actual operating environments to enable appraisal of operational and performance characteristics, and of financial risks.22

2. Project FocusA principal grant applicant may only submit one proposal for this GFO. If the principal applicant submits multiple proposals, the Energy Commission staff will select randomly one proposal to be evaluated, reviewed and scored. Any other proposal submitted by the same applicant will be returned without additional action. However, there is no limit on the number of proposals that an entity can participate in as a subcontractor or match funding partner.

Any applicant wishing to apply for funding amount more than $5,000,000 but not exceeding $7,000,000 must meet the criteria listed in Section I.F.1 of this GFO.

a. Group 1: Demonstration of Standardized High-DER Penetration, Renewable-Based, Resilient and Commercially Viable Microgrids located at California Military Bases, Ports, and Native American Tribes within IOU Service Territories

Group 1 will target microgrid demonstrations located at California Military Bases, California Ports and within the boundaries of certain California Native American tribes, where the microgrid demonstration is located in an IOU electric service territory, where a standardized microgrid configuration can be demonstrated, and its benefits measured and value streams validated. The key element of this segment is to demonstrate a microgrid that meets the individual needs of the selected market segment while providing measurable benefits. Additionally, priority will be given to projects that have a plan to leverage other (non-EPIC) funding opportunities for future microgrids such as DOD and DOE federal funding, investor backed funding, special purpose funds such as Cap and Trade, new federal infrastructure improvement funds and organizational operating funds while the current EPIC funding will demonstrate successful repeatable prototypes that improve the opportunity to seek new sources of funding for future microgrid projects.

Additional information on these market segments is provided below:

1. California Military Bases – Critical factors for military bases and installations are microgrid capability and value for services like reliability and resiliency that incorporate a high concentration of DER. California has over 30 military installations and if a microgrid configuration can be demonstrated and the value reported, future microgrids can be implemented by the military throughout California and the nation using DOD federal funding or future federal infrastructure improvement funds. The military has identified in

22 See CPUC “Phase 2” Decision 12-05-037 at pp. 39-40 and 90, http://docs.cpuc.ca.gov/PublishedDocs/WORD_PDF/FINAL_DECISION/167664.PDF.August 2017 Page 23 GFO-17-302

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many public documents their desire to develop a standard, repeatable energy assurance solution for the bases worldwide. Furthermore, military infrastructure improvements are a high priority of the current administration and properly configured microgrids can meet or exceed this military national security priority. A properly designed and demonstrated military microgrid solution under this solicitation should have a clear path to rapid commercialization throughout the DOD worldwide infrastructure.

2. California Ports – More than 40% of the total containerized cargo entering the United States arrives via California ports and almost 30% of the nation’s exports flow through ports in California. Energy reliability, resiliency and the transition to clean, renewable energy are high priorities for ports. Like the military bases, California ports also have an underlying similarity in their operations and energy configurations. Microgrids appear to have a unique opportunity in assisting ports to achieve their future energy goals. Additionally, as with the military bases, if a standardized microgrid configuration can be demonstrated, the benefits measured and the value streams validated, the opportunity for market growth in this segment is substantial. Finally, these facilities may have access to federal infrastructure funding, internal funding and port customer supported funding in special cases.

3. California Native American Tribes – Projects are eligible if they are located on the lands of California Native American tribes listed with the Native American Heritage Commission (NAHC). (Please note that project requirements are distinct from applicant requirements in Section II.A.1, Applicant Eligibility, above, stating that “all entities” other than POUs may apply). California Native American tribes have unique energy challenges in relationship to energy reliability, resilience, energy independence and the need to provide energy services to a greater portion of the tribe than the currently-served areas. Microgrids can provide a potential solution to many of these energy issues. Furthermore, Native American tribes may have access to other sources of federal, state, grant and other funding. If a standardized microgrid configuration that meets their unique need can be demonstrated and the benefits measured and validated, there is a clear opportunity to develop this market segment with the current EPIC funding to demonstrate successful repeatable prototypes that improves the opportunity to seek these new sources of funding for future microgrid projects.

Proposals submitted under Group 1 must address and comply with the following:

1. Applicant must define each criterion listed in the Scoring Criteria (see Section IV.F).

2. Applicant must provide a written document such as a copy of an electricity bill or a letter from an appropriate IOU account manager verifying that the microgrid demonstration site is located in an IOU electric service territory (PG&E, SDG&E, or SCE) and that the site is an IOU customer’s site that pays into the EPIC fund.

3. The proposed microgrid must include a minimum of three DER elements. Each DER element must be a complete system that provides an independent electric service capability.

If the applicant uses energy efficiency (EE) as one of the DER elements, then the proposal must include a verification plan to measure the before and after energy efficiency so the actual kW/kWh saved can be quantified.

If the applicant uses demand response (DR) as one of the three required DER elements, the application must include a measurement and verification (M&V) plan specific to this

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proposed DR to validate the actual kW/kWh provided when DR is used.  If the DR is used to manage the load of the microgrid, the applicant must define how the DR is used; the services provided by the microgrid; and the proposed value provided for these microgrid load services. If the application will integrate DR services with other DER such as energy storage, then it is up to the applicant to define how this process will work, the values of this integrated services and how the services can be verified, measured and valued.  If the application will provide third party DR services, the application must demonstrate the DR capability by participating in a formal IOU or CA ISO DR tariff or program or a simulated DR tariff or program developed by the applicant.  If the application will use an existing IOU or CA ISO DR tariff or program, the applicant must include validated DR event performance information from the IOU or CA ISO for any DR services provided. Given the current limited number of IOU and CA ISO DR tariffs and programs, the applicant can propose DR programs that highlight the value of the DR services provided by the microgrid.   If the application includes a simulated DR tariff or program, the applicant must define how the DR capability will be demonstrated, define the key elements of the proposed DR tariff or program and provide a test signal to the microgrid system so the actual amount of kW/kWh provided can be measured, assessed and validated when the service is used. 

If the applicant uses vehicle-grid-integration (VGI) services as a DER capability, EPIC funds cannot be used to purchase vehicles for the proposed microgrid. The cost to modify vehicles to be vehicle to grid (V2G) capable, procure vehicle charging stations and any associated software and ancillary items are acceptable expenses for EPIC funds. Applicants can use matching funds to purchase vehicles for any VGI services proposed.

4. The proposed microgrid must be a new permanent installation that manages high DER penetration to meet the load while avoiding adverse grid impacts, through the use of a microgrid controller. Proposals that include mobile, transportable or modular microgrids that are not permanently installed on the microgrid site are not eligible for EPIC funding under this GFO. The only exception is when the microgrid owner/operator desires to move DER services between locations within the microgrid, in which case it is acceptable to have a configuration where selected DER services can be moved to support seasonal changes, contingency needs, or revenue optimization. However, the requirement under item 5 below must be met.

5. The owner/operator of the proposed microgrid must commit to continue operations of the microgrid for an additional three years beyond the term end date of the EPIC grant and provide the Energy Commission a confirmation annually that the system is operating during those three years. Any available summary performance data, benefits data or other relevant summary data reports that can be easily provided based on the data collecting systems installed or available during the period of performance of the EPIC grant should also be provided annually during those additional three years.

6. The microgrid interconnections to the grid must meet California Rule 21 requirements. All project related utility interconnections is the recipient’s responsibility.

7. All environmental review, utility interconnections and other system requirements can clearly be met by the applicant’s proposed project timeline thereby not preventing the Energy Commission from encumbering the required funds by the necessary due dates (see Section I.D of this solicitation for environmental review requirements)

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8. A maximum of 70% of the EPIC funding may be used for equipment purchases. However, the requirement of allowable expenses for the VGI services defined under item 3 above must be met.

9. The proposal must include a detailed, non-confidential (the same as all aspects of the proposal) plan that defines how the microgrid owner/operator will address cyber security over the long term operation of the microgrid.

10. The proposal must include a simple, clear, and easy to understand functional diagram that explains the following:

a. What parts of the microgrid currently exist?

b. What parts of the microgrid will be funded with EPIC funds?

c. What parts of the microgrid will be funded with proposed match funding?

d. What parts of the microgrid will be funded with any other funding?

e. What elements of the microgrid can separate and reconnect to the electric grid?

f. What services or capabilities, if any, will be terminated at the end of the EPIC grant performance period?

11. The proposed microgrid must demonstrate a minimum of 20% reduction in GHG emissions from what existed prior to installing the microgrid.

12. The proposed microgrid must include a central microgrid controller that has access to all the critical elements of the microgrid for either controller functions or data monitoring.

13. The proposed microgrid must be able to operate in islanded mode for an extended period based on the business case proposed for the project while demonstrating the value of this extended period of operations to the owner/operator. The proposal must address why a given extended period of operations is selected.

14. For this GFO, only generation systems using 100 percent renewable fuels can be a DER element for any proposed microgrid project. The proposed renewable generation system or fuel cell must operate with 100 percent renewable fuel during the 12-month performance evaluation period and the follow-on 3-year data collection period. Neither diesel nor fossil-fuel can be part of the proposed renewable generation system for the entire term of the agreement.  If these conditions are met, either EPIC or match funds can be used and this system can be considered as the renewable generation resources of DER elements for the proposed microgrid. Neither EPIC nor match funds proposed for projects under this GFO shall be used to purchase, modify or improve any existing or new fossil-fueled generation system. If the fossil-fueled generation system exists and is currently operating, it can be part of the proposed microgrid. However, it cannot be considered as one of the three required DER elements nor can any EPIC or match funds be used to support this existing system.  Finally, the ability to reduce the operating hours or eliminate the need for any existing diesel or fossil fueled generating systems can be used when computing the required 20% GHG emission reduction.

15. The proposal must include a clear, understandable business case that illustrates how the proposed microgrid system meets the critical needs of the intended end user/operator and defines why this specific configuration has a high potential for being repeated or replicated in the future using other than EPIC funds in future locations both

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inside and outside of California. The detail business plan must be provided as a deliverable in the project scope of work (Attachments 6 and 6a).

16. The proposed project must have clear community support represented by letters of support or commitment and demonstrable active participation in the proposed project such as providing matching funds, participating in project design reviews or being a member of the project technical advisory committee (TAC).

17. The proposal must include (1) an assessment of expected benefits, as described in Section II.B.3, Ratepayer Benefits, Technical Advancements, and Breakthroughs; (2) sufficient budget to evaluate benefits by responding to four benefits questionnaires that will be provided by the Energy Commission staff (one at project kickoff, one around mid-project, one at project’s end, and one three years after the project is completed); and (3) in the case of an energy efficiency project, a measurement and verification plan as discussed in Section II.B.4. Benefits questionnaires, will include the following, at least:

a. Reliability, resiliency and sustainability improvements as provided by the microgrid.

b. Net impacts on the larger grid’s load and load shape as provided by the microgrid.

c. GHG reductions as provided by the microgrid, compared to using the utility grid for the electricity and also GHG reductions as provided by any new energy efficiency capabilities of the proposed microgrid project.

d. The dollar value of energy savings as provided by the microgrid, each year.

e. The dollar value of any co-benefits that may accrue to the project, each year.

f. Cost savings or increments compared to business as usual, as provided by the microgrid, over the grant period and the additional three years of data reporting. This includes technology and installation costs, operations and maintenance, and energy use.

g. Benefit metrics for each of the different DER separated by the specific DER element (e.g., the value energy storage provides to the microgrid owner/operator, the value renewables provide to the microgrid owner/operator, the value demand response services provide to the microgrid owner/operator, etc.).

h. Benefit of services as provided by the microgrid to the utility grid.

18. The applicant must explain in Part 3 of the Project Narrative (Attachment 4) why there is a reasonable opportunity that future microgrids that use the results of the identified project will have access to internal, federal, commercial or other sources of funding sufficient to allow for successful future implementation of the microgrids in the selected segments. The applicant should clearly demonstrate how the current EPIC funding proposed for their demonstration under this GFO illustrates successful, repeatable prototypes with improved opportunities to seek new sources of funding for future microgrid projects.

19. The applicant can request up to a total of $7,000,000 in EPIC funds. However, if the applicant requests funding more than $5,000,000, the applicant must meet the criteria listed in Section I.F.1 and the proposal must demonstrate, to Energy Commission staff’s satisfaction and in their sole discretion, the benefits and values of linking several microgrids together to reach higher capabilities and a more rapid commercialization.

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This option must include a match funding in the amount of at least 25% of the requested EPIC funds and not be simply a bigger microgrid but rather a new configuration of multiple microgrids that provide clear benefits and higher economic potential. It is the responsibility of the applicant to make the case for the additional funding by defining how this new configuration has definable value and viable market benefits beyond a single microgrid. The microgrids may be co-located or connected virtually as long as joining of the microgrids provides a clear and definable greater benefits and values than each microgrid would provide on its own to end-users.

20. While it is not required to complete the project proposed under Group 1 within a disadvantaged community, demonstrations that will directly benefit a disadvantaged community are encouraged and will receive up to 5 additional points under the scoring criterion 9 for this GFO (see Section IV.F).

Proposals must meet the following technical requirements:

1. Key technologies used in the demonstration, except the microgrid controller or any V2G systems proposed, must be at the Department of Energy’s Technology Readiness Level (TRL) 8 or greater, i.e., all pilot testing completed23.

2. DER technologies used must be in the marketplace and commercially available at the end of the project (i.e., sold, leased, or licensed to the general public), in keeping with the intent of this solicitation to advance technologies towards replicable deployment.

The Technical Tasks in Section III of the Scope of Work (Attachments 6 and 6a) must incorporate the following as products:

1. At least 12 months of technical and economic microgrid data collection, including: documentation of installation issues, operational constraints, operational performance (such as the number of hours a microgrid can operate independently off the grid), and response to grid emergencies. These data must be collected prior to the grant agreement end date and not to be included as part of the additional three years of data collection required after the agreement end date.

2. Documentation of success, measured in accordance with parameters pre-defined in the proposal and reviewed by the Energy Commission CAM.

3. A discussion of lessons learned and best practices, including a design configuration that provides the highest value to ratepayers and utilities.

b. Group 2: Demonstration of Standardized High-DER Penetration, Renewable-Based, Resilient and Functional Microgrids located at California Disadvantaged Communities within IOU Service Territories

23 US DOE Technology Readiness Assessment (TRA)/Technology Maturation Plan (TMP) Process Guide, https://www.energy.gov/em/downloads/technology-readiness-assessment-tratechnology-maturation-plan-tmp-process-guide August 2017 Page 28 GFO-17-302

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Disadvantaged communities are defined as the top 25% scoring areas from CalEnviroScreen. The applicant must use CalEnviroScreen 3.0 or later versions to designate disadvantaged communities.24

Group 2 will target microgrid demonstrations located in a California Disadvantaged Community within an electric IOU territory while providing a standardized microgrid configuration that can be demonstrated and the benefits measured and the value streams validated. One of the key scoring criteria will be based on the ability of the microgrid to provide services and improvements to the residents of these communities and not just temporary jobs. The key element of this segment is to demonstrate a microgrid that meets the individual needs of this market segment while providing measurable benefits and making an overall business case that allows for repeated future applications funded by funds other than EPIC. Priority will be given to microgrids that provide significant local environmental benefits and/or power reliability enhancements.

Initial microgrid research across many communities indicates that a properly configured and operated microgrid can provide higher reliability, lower electricity bills and cleaner air. In many disadvantaged communities, the use of energy resilience hubs can provide services to the community at a higher level than separate or independent solutions. If a standardized microgrid configuration that meets these communities’ unique need can be demonstrated and the benefits (reduced GHG emissions, lower energy costs, and higher energy reliability) measured and validated, there is a clear opportunity to develop this market segment. Moreover, there are several state and federal programs available to assist similarly-situated communities in adopting these standardized microgrid solutions where the current EPIC funding suffices to demonstrate successful, repeatable prototypes that improve the opportunity to seek these new sources of funding for future microgrid projects. An essential component of proposals for this group is local community support and input into the design of the microgrid to ensure it meets their priorities. Additionally, the applicant shall identify the value of the proposed microgrid demonstration to the residents of the Disadvantaged Community, not just the business opportunities the microgrid offers to the Disadvantaged Community.

Proposals submitted under Group 2 must address and comply with the following:

1. Applicant must define each criterion listed in the Scoring Criteria (see Section IV.F).

2. Applicant must provide a written document such as a copy of an electricity bill or a letter from an appropriate IOU account manager verifying that the microgrid demonstration site is located in an IOU electric service territory (PG&E, SDG&E, or SCE) and that the site is an IOU customer’s site that pays into the EPIC fund.

3. The proposed microgrid must include a minimum of three DER elements. Each DER element must be a complete system that provides an independent electric service capability.

If the applicant uses energy efficiency as one of the DER elements, then the proposal must include a verification plan to measure the before and after energy efficiency so the actual kW/kWh saved can be quantified.

If the applicant uses demand response (DR) as one of the three required DER elements, the application must include a measurement and verification (M&V) plan specific to this proposed DR to validate the actual kW/kWh provided when DR is used.  If the DR is

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used to manage the load of the microgrid, the applicant must define how the DR is used; the services provided by the microgrid; and the proposed value provided for these microgrid load services. If the application will integrate DR services with other DER such as energy storage, then it is up to the applicant to define how this process will work, the values of this integrated services and how the services can be verified, measured and valued.  If the application will provide third party DR services, the application must demonstrate the DR capability by participating in a formal IOU or CA ISO DR tariff or program or a simulated DR tariff or program developed by the applicant.  If the application will use an existing IOU or CA ISO DR tariff or program, the applicant must include validated DR event performance information from the IOU or CA ISO for any DR services provided. Given the current limited number of IOU and CA ISO DR tariffs and programs, the applicant can propose DR programs that highlight the value of the DR services provided by the microgrid.   If the application includes a simulated DR tariff or program, the applicant must define how the DR capability will be demonstrated, define the key elements of the proposed DR tariff or program and provide a test signal to the microgrid system so the actual amount of kW/kWh provided can be measured, assessed and validated when the service is used. 

If the applicant uses vehicle-grid-integration (VGI) services as a DER capability, EPIC funds cannot be used to purchase vehicles for the proposed microgrid. The cost to modify vehicles to be vehicle to grid (V2G) capable, procure vehicle charging stations and any associated software and ancillary items are acceptable expenses for EPIC funds. Applicants can use matching funds to purchase vehicles for any VGI services proposed.

4. The proposed microgrid must be a new permanent installation that manages high DER penetration to meet the load while avoiding adverse grid impacts, through the use of a microgrid controller. Proposals that include mobile, transportable or modular microgrids that are not permanently installed on the microgrid site are not eligible for EPIC funding under this GFO. The only exception is when the microgrid owner/operator desires to move DER services between locations within the microgrid, in which case it is acceptable to have a configuration where selected DER services can be moved to support seasonal changes, contingency needs, or revenue optimization. However, the requirement under item 5 below must be met.

5. The owner/operator of the proposed microgrid must commit to continue operations of the microgrid for an additional three years beyond the term end date of the EPIC grant and provide the Energy Commission a confirmation annually that the system is operating during those three years. Any available summary performance data, benefits data or other relevant summary data reports that can be easily provided based on the data collecting systems installed or available during the period of performance of the EPIC grant should also be provided annually during those additional three years.

6. The microgrid interconnections to the grid must meet California Rule 21 requirements. All project related utility interconnections is the recipient’s responsibility.

7. All environmental review, utility interconnections and other system requirements can clearly be met by the applicant’s proposed project timeline thereby not preventing the Energy Commission from encumbering the required funds by the necessary due dates (see Section I.D of this solicitation for environmental review requirements).

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8. A maximum of 80% of the EPIC funding may be used for equipment purchases. However, the requirement of allowable expenses for the VGI services defined under item 3 above must be met.

9. The proposal must include a detailed, non-confidential (the same as all aspects of the proposal) plan that defines how the microgrid owner/operator will address cyber security over the long term operation of the microgrid.

10. The proposal must include a simple, clear, and easy to understand functional diagram that explains the following:

a. What parts of the microgrid currently exist?

b. What parts of the microgrid will be funded with EPIC funds?

c. What parts of the microgrid will be funded with proposed match funding?

d. What parts of the microgrid will be funded with any other funding?

e. What elements of the microgrid can separate and reconnect to the electric grid?

f. What services or capabilities, if any, will be terminated at the end of the EPIC grant performance period?

11. The proposed microgrid must demonstrate a minimum of 20% reduction in GHG emissions from what existed prior to installing the microgrid.

12. The proposed microgrid must include a central microgrid controller that has access to all the critical elements of the microgrid for either controller functions or data monitoring.

13. The proposed microgrid must be able to operate in islanded mode for an extended period based on the business case proposed for the project while demonstrating the value of this extended period of operations to the owner/operator. The proposal must address why a given extended period of operations is selected.

14. For this GFO, only generation systems using 100 percent renewable fuels can be a DER element for any proposed microgrid project. The proposed renewable generation system or fuel cell must operate with 100 percent renewable fuel during the 12-month performance evaluation period and the follow-on 3-year data collection period. Neither diesel nor fossil-fuel can be part of the proposed renewable generation system for the entire term of the agreement.  If these conditions are met, either EPIC or match funds can be used and this system can be considered as the renewable generation resources of DER elements for the proposed microgrid. Neither EPIC nor match funds proposed for projects under this GFO shall be used to purchase, modify or improve any existing or new fossil-fueled generation system. If the fossil-fueled generation system exists and is currently operating, it can be part of the proposed microgrid. However, it cannot be considered as one of the three required DER elements nor can any EPIC or match funds be used to support this existing system.  Finally, the ability to reduce the operating hours or eliminate the need for any existing diesel or fossil fueled generating systems can be used when computing the required 20% GHG emission reduction.

15. The proposal must include a clear, understandable business case that illustrates how the proposed microgrid system meets the critical needs of the intended end user/operator and defines why this specific configuration has a high potential for being repeated or replicated in the future using other than EPIC funds in future locations both inside and outside of California. The detail business plan must be provided as a deliverable in the project scope of work (Attachments 6 and 6a).

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16. The proposed project must have clear community support represented by letters of support or commitment and demonstrable active participation in the proposed project such as providing matching funds, participating in project design reviews or being a member of the project technical advisory committee (TAC).

17. The proposal must include (1) an assessment of expected benefits, as described in Section II.B.3, Ratepayer Benefits, Technical Advancements, and Breakthroughs; (2) sufficient budget to evaluate benefits by responding to four benefits questionnaires that will be provided by the Energy Commission staff (one at project kickoff, one around mid-project, one at project’s end, and one three years after the project is completed); and (3) in the case of an energy efficiency project, a measurement and verification plan as discussed in Section II.B.4. Benefits questionnaires, will include the following, at least:

a. Reliability, resiliency and sustainability improvements as provided by the microgrid.

b. Net impacts on the larger grid’s load and load shape as provided by the microgrid.

c. GHG reductions as provided by the microgrid, compared to using the utility grid for the electricity and also GHG reductions as provided by any new energy efficiency capabilities of the proposed microgrid project.

d. The dollar value of energy savings as provided by the microgrid, each year.

e. The dollar value of any co-benefits that may accrue to the project, each year.

f. Cost savings or increments compared to business as usual, as provided by the microgrid, over the grant period and the additional three years of data reporting. This includes technology and installation costs, operations and maintenance, and energy use.

g. Benefit metrics for each of the different DER separated by the specific DER element (e.g., the value energy storage provides to the microgrid owner/operator, the value renewables provide to the microgrid owner/operator, the value demand response services provide to the microgrid owner/operator, etc.).

h. Benefit of services as provided by the microgrid to the utility grid.

18. The applicant must explain in Part 3 of the Project Narrative (Attachment 4) why there is a reasonable opportunity that future microgrids that use the results of the identified project will have access to internal, federal, commercial or other sources of funding sufficient to allow for successful future implementation of the microgrids in the selected segments. The applicant should clearly demonstrate how the current EPIC funding proposed for their demonstration under this GFO illustrates successful, repeatable prototypes with improved opportunities to seek new sources of funding for future microgrid projects.

19. The applicant can request up to a total of $7,000,000 in EPIC funds. However, if the applicant requests funding more than $5,000,000, the applicant must meet the criteria listed in Section I.F.1 and the proposal must demonstrate, to Energy Commission staff’s satisfaction and in their sole discretion, the benefits and values of linking several microgrids together to reach higher capabilities and a more rapid commercialization. This option must include a match funding in the amount of at least 25% of the requested EPIC funds and not be simply a bigger microgrid but rather a new configuration of

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multiple microgrids that provide clear benefits and higher economic potential. It is the responsibility of the applicant to make the case for the additional funding by defining how this new configuration has definable value and viable market benefits beyond a single microgrid. The microgrids may be co-located or connected virtually as long as joining of the microgrids provides a clear and definable greater benefits and values than each microgrid would provide on its own to end-users.

Proposals must meet the following technical requirements:

1. Key technologies used in the demonstration except the microgrid controller or any V2G systems proposed must be at Department of Energy Technology Readiness Level (TRL) 8 or greater, i.e., all pilot testing completed25.

2. DER technologies used must be in the marketplace and commercially available at the end of the project (i.e., sold, leased, or licensed to the general public), in keeping with the intent of this solicitation to advance technologies towards replicable deployment.

The Technical Tasks in Section III of the Scope of Work (Attachments 6 and 6a) must incorporate the following as products:

1. At least 12 months of technical and economic microgrid data collection, including: documentation of installation issues, operational constraints, operational performance (such as the number of hours a microgrid can operate independently off the grid), and response to grid emergencies. These data must be collected prior to the grant agreement end date and not to be included as part of the additional three years of data collection required after the agreement end date.

2. Documentation of success, measured in accordance with parameters pre-defined in the proposal and reviewed by the Energy Commission CAM.

3. A discussion of lessons learned and best practices, including a design configuration that provides the highest value to ratepayers and utilities.

c. Group 3: Demonstration of Standardized High-DER Penetration, Renewable-Based, Resilient and Commercially Viable Microgrids in IOU Territories that are not Proposed either Under the Group 1 and or Group 2 Projects and Where Microgrids Provide Clear and Definable Added Value to the Selected End User of IOU customers

Group 3 will target microgrid demonstrations for the remaining market segments in California, where the microgrid demonstration is located in IOU electric service territories. As with the other targeted market segments in Group 1 and Group 2, the focus of this group will be to demonstrate a standardized microgrid configuration that meets the individual needs of this market segment and also provides measurable benefits and an overall business case that is acceptable for repeated applications funded by other than EPIC funds. For this group, additional funding could come from sources such as DOE, future federal infrastructure improvement 25 US DOE Technology Readiness Assessment (TRA)/Technology Maturation Plan (TMP) Process Guide, https://www.energy.gov/em/downloads/technology-readiness-assessment-tratechnology-maturation-plan-tmp-process-guideAugust 2017 Page 33 GFO-17-302

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funding opportunities, private investor funding and internal organizational funding based on the results of the business case developed as part of the proposed microgrid demonstration. The applicant should clearly demonstrate how the current EPIC funding proposed for their demonstration under this GFO suffices to illustrate successful repeatable prototypes that improve the opportunity to seek these new sources of funding for future microgrid projects.

Proposals submitted under Group 3 must address and comply with the following:

1. Applicant must define each criterion listed in the Scoring Criteria (see Section IV.F).

2. Applicant must provide a written document such as a copy of an electricity bill or a letter from an appropriate IOU account manager verifying that the microgrid demonstration site is located in an IOU electric service territory (PG&E, SDG&E, or SCE) and that the site is an IOU customer’s site that pays into the EPIC fund.

3. The proposed microgrid must include a minimum of three DER elements. Each DER element must be a complete system that provides an independent electric service capability.

If the applicant uses energy efficiency as one of the DER elements, then the proposal must include a verification plan to measure the before and after energy efficiency so the actual kW/kWh saved can be quantified.

If the applicant uses demand response (DR) as one of the three required DER elements, the application must include a measurement and verification (M&V) plan specific to this proposed DR to validate the actual kW/kWh provided when DR is used.  If the DR is used to manage the load of the microgrid, the applicant must define how the DR is used; the services provided by the microgrid; and the proposed value provided for these microgrid load services. If the application will integrate DR services with other DER such as energy storage, then it is up to the applicant to define how this process will work, the values of this integrated services and how the services can be verified, measured and valued.  If the application will provide third party DR services, the application must demonstrate the DR capability by participating in a formal IOU or CA ISO DR tariff or program or a simulated DR tariff or program developed by the applicant.  If the application will use an existing IOU or CA ISO DR tariff or program, the applicant must include validated DR event performance information from the IOU or CA ISO for any DR services provided. Given the current limited number of IOU and CA ISO DR tariffs and programs, the applicant can propose DR programs that highlight the value of the DR services provided by the microgrid.   If the application includes a simulated DR tariff or program, the applicant must define how the DR capability will be demonstrated, define the key elements of the proposed DR tariff or program and provide a test signal to the microgrid system so the actual amount of kW/kWh provided can be measured, assessed and validated when the service is used.

If the applicant uses vehicle-grid-integration (VGI) services as a DER capability, EPIC funds cannot be used to purchase vehicles for the proposed microgrid. The cost to modify vehicles to be vehicle to grid (V2G) capable, procure vehicle charging stations and any associated software and ancillary items are acceptable expenses for EPIC funds. Applicants can use matching funds to purchase vehicles for any VGI services proposed.

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4. The proposed microgrid must be a new permanent installation that manages high DER penetration to meet the load while avoiding adverse grid impacts, through the use of a microgrid controller. Proposals that include mobile, transportable or modular microgrids that are not permanently installed on the microgrid site are not eligible for EPIC funding under this GFO. The only exception is when the microgrid owner/operator desires to move DER services between locations within the microgrid, in which case it is acceptable to have a configuration where selected DER services can be moved to support seasonal changes, contingency needs, or revenue optimization. However, the requirement under item 5 below must be met.

5. The owner/operator of the proposed microgrid must commit to continue operations of the microgrid for an additional three years beyond the term end date of the EPIC grant and provide the Energy Commission a confirmation annually that the system is operating during those three years. Any available summary performance data, benefits data or other relevant summary data reports that can be easily provided based on the data collecting systems installed or available during the period of performance of the EPIC grant should also be provided annually during those additional three years.

6. The microgrid interconnections to the grid must meet California Rule 21 requirements. All project related utility interconnections is the recipient’s responsibility.

7. All environmental review, utility interconnections and other system requirements can clearly be met by the applicant’s proposed project timeline thereby not preventing the Energy Commission from encumbering the required funds by the necessary due dates (see Section I.D of this solicitation for environmental review requirements).

8. A maximum of 70% of the EPIC funding may be used for equipment purchases. However, the requirement of allowable expenses for the VGI services defined under item 3 above must be met.

9. The proposal must include a detailed, non-confidential (the same as all aspects of the proposal) plan that defines how the microgrid owner/operator will address cyber security over the long term operation of the microgrid.

10. The proposal must include a simple, clear, and easy to understand functional diagram that explains the following:

g. What parts of the microgrid currently exist?

h. What parts of the microgrid will be funded with EPIC funds?

i. What parts of the microgrid will be funded with proposed match funding?

j. What parts of the microgrid will be funded with any other funding?

k. What elements of the microgrid can separate and reconnect to the electric grid?

l. What services or capabilities, if any, will be terminated at the end of the EPIC grant performance period?

11. The proposed microgrid must demonstrate a minimum of 20% reduction in GHG emissions from what existed prior to installing the microgrid.

12. The proposed microgrid must include a central microgrid controller that has access to all the critical elements of the microgrid for either controller functions or data monitoring.

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13. The proposed microgrid must be able to operate in islanded mode for an extended period based on the business case proposed for the project while demonstrating the value of this extended period of operations to the owner/operator. The proposal must address why a given extended period of operations is selected.

14. For this GFO, only generation systems using 100 percent renewable fuels can be a DER element for any proposed microgrid project. The proposed renewable generation system or fuel cell must operate with 100 percent renewable fuel during the 12-month performance evaluation period and the follow-on 3-year data collection period. Neither diesel nor fossil-fuel can be part of the proposed renewable generation system for the entire term of the agreement.  If these conditions are met, either EPIC or match funds can be used and this system can be considered as the renewable generation resources of DER elements for the proposed microgrid. Neither EPIC nor match funds proposed for projects under this GFO shall be used to purchase, modify or improve any existing or new fossil-fueled generation system. If the fossil-fueled generation system exists and is currently operating, it can be part of the proposed microgrid. However, it cannot be considered as one of the three required DER elements nor can any EPIC or match funds be used to support this existing system.  Finally, the ability to reduce the operating hours or eliminate the need for any existing diesel or fossil fueled generating systems can be used when computing the required 20% GHG emission reduction.

15. The proposal must include a clear, understandable business case that illustrates how the proposed microgrid system meets the critical needs of the intended end user/operator and defines why this specific configuration has a high potential for being repeated or replicated in the future using other than EPIC funds in future locations both inside and outside of California. The detail business plan must be provided as a deliverable in the project scope of work (Attachments 6 and 6a).

16. The proposed project must have clear community support represented by letters of support or commitment and demonstrable active participation in the proposed project such as providing matching funds, participating in project design reviews or being a member of the project technical advisory committee (TAC).

17. The proposal must include (1) an assessment of expected benefits, as described in Section II.B.3, Ratepayer Benefits, Technical Advancements, and Breakthroughs; (2) sufficient budget to evaluate benefits by responding to four benefits questionnaires that will be provided by the Energy Commission staff (one at project kickoff, one around mid-project, one at project’s end, and one three years after the project is completed); and (3) in the case of an energy efficiency project, a measurement and verification plan as discussed in Section II.B.4. Benefits questionnaires, will include the following, at least:

a. Reliability, resiliency and sustainability improvements as provided by the microgrid.

b. Net impacts on the larger grid’s load and load shape as provided by the microgrid.

c. GHG reductions as provided by the microgrid, compared to using the utility grid for the electricity and also GHG reductions as provided by any new energy efficiency capabilities of the proposed microgrid project.

d. The dollar value of energy savings as provided by the microgrid, each year.

e. The dollar value of any co-benefits that may accrue to the project, each year.

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f. Cost savings or increments compared to business as usual, as provided by the microgrid, over the grant period and the additional three years of data reporting. This includes technology and installation costs, operations and maintenance, and energy use.

g. Benefit metrics for each of the different DER separated by the specific DER element (e.g., the value energy storage provides to the microgrid owner/operator, the value renewables provide to the microgrid owner/operator, the value demand response services provide to the microgrid owner/operator, etc.).

h. Benefit of services as provided by the microgrid to the utility grid.

18. The applicant must explain in Part 3 of the Project Narrative (Attachment 4) why there is a reasonable opportunity that future microgrids that use the results of the identified project will have access to internal, federal, commercial or other sources of funding sufficient to allow for successful future implementation of the microgrids in the selected segments. The applicant should clearly demonstrate how the current EPIC funding proposed for their demonstration under this GFO illustrates successful, repeatable prototypes with improved opportunities to seek new sources of funding for future microgrid projects.

19. The applicant can request up to a total of $7,000,000 in EPIC funds. However, if the applicant requests funding more than $5,000,000, the applicant must meet the criteria listed in Section I.F.1 and the proposal must demonstrate, to Energy Commission staff’s satisfaction and in their sole discretion, the benefits and values of linking several microgrids together to reach higher capabilities and a more rapid commercialization. This option must include a match funding in the amount of at least 25% of the requested EPIC funds and not be simply a bigger microgrid but rather a new configuration of multiple microgrids that provide clear benefits and higher economic potential. It is the responsibility of the applicant to make the case for the additional funding by defining how this new configuration has definable value and viable market benefits beyond a single microgrid. The microgrids may be co-located or connected virtually as long as joining of the microgrids provides a clear and definable greater benefits and values than each microgrid would provide on its own to end-users.

20. While it is not required to complete the project proposed under Group 3 within a disadvantaged community, demonstrations that will directly benefit a disadvantaged community are encouraged and will receive up to 5 additional points under the scoring criterion 9 for this GFO (see Section IV.F).

Proposals must meet the following technical requirements:

1. Key technologies used in the demonstration except the microgrid controller or any V2G systems proposed must be at the DOE’s Technology Readiness Level (TRL) 8 or greater, i.e., all pilot testing completed26.

2. DER technologies used must be in the marketplace and commercially available at the end of the project (i.e., sold, leased, or licensed to the general public), in keeping with the intent of this solicitation to advance technologies towards replicable deployment.

26 US DOE Technology Readiness Assessment (TRA)/Technology Maturation Plan (TMP) Process Guide, https://www.energy.gov/em/downloads/technology-readiness-assessment-tratechnology-maturation-plan-tmp-process-guideAugust 2017 Page 37 GFO-17-302

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The Technical Tasks in Section III of the Scope of Work (Attachments 6 and 6a) must incorporate the following as products:

1. At least 12 months of technical and economic microgrid data collection, including: documentation of installation issues, operational constraints, operational performance (such as the number of hours a microgrid can operate independently off the grid), and response to grid emergencies. These data must be collected prior to the grant agreement end date and not to be included as part of the additional three years of data collection required after the agreement end date.

2. Documentation of success, measured in accordance with parameters pre-defined in the proposal and reviewed by the Energy Commission CAM.

3. A discussion of lessons learned and best practices, including a design configuration that provides the highest value to ratepayers and utilities.

General application guidance for Groups 1, 2 and 3

Upon the release of the Notice of Proposed Awards (NOPA), all environmental review, utility interconnections and other system requirements must be met by the applicant’s proposed project timeline thereby not preventing the Energy Commission from encumbering the required funds by the necessary due dates (see Section I.D of this solicitation for environmental review requirements). Furthermore, if any proposal that is listed on the released NOPA as an awardee is subsequently unable to complete required environmental review by the timeline defined in the approved proposal, they will be removed from the awardee funding list and the next-highest scoring proposal on the finalist list will receive the funding in its place.Any microgrid demonstrations proposed to be located in the publicly-owned electric utility territories are not eligible under this solicitation. In accordance with CPUC Decision 12-05-037, funds administered by the Energy Commission may not be used for any purposes associated with local publicly owned electric utility activities. Hence, all microgrid demonstrations must be located in a California IOU electric service territory (PG&E, SDG&E, or SCE) and the microgrid site must be an IOU customer’s site that pays the Electric Program Investment Charge (EPIC) in accordance with CPUC Decision 12-05-037.

3. Ratepayer Benefits, Technological Advancements, and Breakthroughs

California Public Resources Code Section 25711.5(a) requires EPIC-funded projects to:

Benefit electricity ratepayers; and

Lead to technological advancement and breakthroughs to overcome the barriers that prevent the achievement of the state’s statutory energy goals.

The CPUC defines “ratepayer benefits” as greater reliability, lower costs, and increased safety.27 The CPUC has also adopted the following guiding principles as components of those benefits (not subordinate to them): societal benefits; GHG emissions mitigation and adaptation in the electricity sector at the lowest possible cost; the loading order; low-emission vehicles/transportation; economic development; and efficient use of ratepayer monies.28

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Accordingly, the Project Narrative Form (Attachment 4) and the “Goals and Objectives” section of the Scope of Work Template (Attachment 6) must describe how the project will: (1) benefit California IOU ratepayers by increasing reliability, lowering costs, and/or increasing safety; addressing the guiding principles/component benefits listed above where applicable and (2) lead to technological advancement and breakthroughs to overcome barriers to achieving the state’s statutory energy goals. Applicants must also describe qualitative benefits under Scoring Criteria 3 (Impacts and Benefits for California IOU Ratepayers), located in Section IV.F of the solicitation manual.

In the project narrative (Attachment 4), applicants must describe how they will measure and verify the impacts and benefits to California ratepayers that the applicants claim in their proposal.

Defining similar facilities for adopting your microgrid:Applicants must define target adopters and describe the maximum potential market for proposed microgrids by answering the following questions: If similar ratepayer facilities in IOU territories adopt the proposed microgrid configuration, how many of them would there be (or how many MW or MWh of capacity or electricity would be included)? Additionally, what would be the size of the national and international market for this microgrid? Also, applicants must include these numbers in the project narrative (Attachment 4) since it defines the proposed market. Applicants will report benefits and costs for two scenarios using the current state of the proposed facility as a baseline: (1) the project for which the applicant is requesting EPIC funding and (2) a scenario of market maturity, where the microgrid has been replicated on a fairly large scale. Additionally, applicants should discuss what level of microgrid penetration they would expect from their target adopters, in what time frame, and why.

Project Benefits and Costs:For each of the two scenarios above (proposed project, and mature market), at the very least, applicants should discuss the costs and benefits, quantitatively wherever possible, qualitatively if need be. Applicants should explain how they derived their quantitative estimates, providing references and explain the basis of any judgements they had to make. Applicants should be transparent about uncertainty, and are welcome to provide potential ranges of costs and benefits where simple point estimates would be misleading.

Applicants should discuss how the cost of the microgrid will impact its commercial viability in the future, and how they would express that cost to a potential future customer.

Some examples of expected project benefits applicants may report are:

1. Energy use reductions. If the proposed microgrid will reduce energy usage (kW, kWh and therm), applicants should list the annual energy savings expected, and report dollar values using the statewide average energy prices in below table or time of use (TOU) prices provided by the applicants.

Electric, statewide average, 2015 dollarsSector $/kWh

Residential 0.1698

Commercial 0.1564

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Industrial 0.1175

Natural Gas, statewide average, 2015 dollarsSector $/therm

Residential 1.00

Commercial 0.95

Industrial 0.92

2. Energy generated with on-site renewables. Applicants should list the annual kWh to be generated and report dollar values supported with references. To predict solar generation applicants may use the PVWatts calculator at pvwatts.nrel.gov.

3. Net load shape. Applicants should discuss and if possible estimate or graph the net load shape of the microgrid, addressing how this would mitigate or exacerbate the duck curve.29.

4. Ramping and other ancillary services. Applicants should discuss when these services would occur, and potentially their value, and how these numbers are derived.

5. Reliability for microgrid users. If the proposed microgrid will increase the reliability of the facilities or customers it serves, the applicants may report the historical and expected outage frequency and cost. It is acceptable to use the Interruption Cost Estimate (ICE) Calculator at http://www.icecalculator.com/ to assess values.

6. Values of avoided expenditures. If the project saves costs in labor, waste disposal, or anything else not already addressed in the costs segment, applicants may provide that information as well, explaining how it is derived.

7. Power quality and other features of the microgrid. If applicants are showing the value of extended equipment life due to increased power quality, applicants should provide the methodology they will use and how the values are determined for these equipment life extensions due to better power quality.

8. Greenhouse gas reductions due to renewable generation and energy savings. For an approximation, Applicants should apply a carbon footprint of 0.28 kg per kWh for electricity and 5.3 kg per therm for natural gas no longer required from the larger grid.

9. Security and safety. Applicants should describe any improvements in the safety or security of the microgrid facility and/or the larger grid.

10. If energy storage is included as one of the DER elements for the proposed microgrid system, applicants must complete an energy storage valuation using the public domain Storage Value Estimation Tool (StorageVETTM) developed under the EPIC Program (www.storagevet.com) or report any failures to make the program work and provide alternative benefit/cost estimates. From the StorageVET™ program, applicants should report the following values and tables from the Financial Results tab: NPV Cost/Benefit Chart, Total Project NPV, Net Cost of Capacity ($/kW-year), and Breakeven Capital Costs ($/KWh). In StorageVET™ and other calculations, the awardee should set the discount rate at 7%, obtained on StorageVET™ by setting Debt Interest Rate and Equity

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Rate both to 7% on the Financials Tab. Applicant shall submit an attachment listing each technical, use case, and financial assumption going into the analysis.  Information about StorageVET™ can be found at http://www.energy.ca.gov/2017publications/CEC-500-2017-016/index.html. To use StorageVET, which is free of charge, the applicant should enroll at storagevet@epri.com; this may take several days so the applicants should plan accordingly. Although StorageVET results must be reported, applicants may additionally report results from any other energy storage valuation tool or calculation, along with clear documentation of the modeling approach and why it was chosen. In this case, applicants are not required to use the results obtained from the StorageVET™ in their overall metrics or benefits projections.

11. Cost-Benefit Analysis. Cost benefit analysis (as referenced in scoring criterion 3f) will include two assessments: (1) is the microgrid likely to be cost beneficial enough to be widely replicated? For this analysis the applicants will use the mature market microgrid scenario, and calculate the net benefits (benefits over time minus costs over time) of the microgrid. (2) Is the value of the research high compared to the EPIC investment? For this the applicants will demonstrate how this microgrid will be replicated, and how after commercial acceptance and substantial adoption in and out of California, the cumulative net benefits and value of the California adoptions will compare to the size of the EPIC investment. Social values such as reaching disadvantaged communities and intangible values such as improving safety or addressing policy requirements can be presented qualitatively. Applicants that expect large adoption outside of California should explain the value of that adoption level to the California adopters.

4. Measurement and Verification PlanApplicants must include a Measurement and Verification Plan in the Project Narrative (Attachment 4) that describes how actual project benefits will be measured and quantified, such as by pre and post-project energy use (kilowatt hours, kilowatts), reliability improvements, resiliency improvements, and cost savings for energy, water, and other benefits.

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III. Application Organization and Submission InstructionsA. APPLICATION FORMAT, PAGE LIMITS, AND NUMBER OF COPIES The following table summarizes the application formatting and page limit recommendations:

Format Font: 11-point, Arial (excluding Excel spreadsheets, original template headers and footers, and commitment or support letters)

Margins: No less than one inch on all sides (excluding headers and footers)

Spacing: Single spaced, with a blank line between each paragraph Pages: Numbered and printed double-sided (when determining

page limits, each printed side of a page counts as one page) Signatures: Manual (i.e., not electronic) Labeling: Tabbed and labeled as required in Sections B and C

below Binding: Original binder clipped; all other copies spiral or comb

bound (binders discouraged) File Format: MS Word version 1997-2003, or version 2007 or later

(.doc or .docx format), excluding Excel spreadsheets and commitment or support letters (PDF files are acceptable for the letters)

File Storage: Electronic files of the application must be submitted on a CD-ROM or USB memory stick

Page Limit Recommendations Executive Summary (Attachment 2): two pages

Fact Sheet (Attachment 3): two pages Project Narrative Form (Attachment 4): twenty pages excluding

documentation for CEQA Project Team Form (Attachment 5): two pages for each resume Reference and Work Product Form (Attachment 9): one page for

each reference, two pages for each project description Commitment and Support Letter Form (Attachment 11): two

pages, excluding the cover page

The following attachments are recommended not to exceed seventy pages:o Executive Summary Formo Fact Sheet Templateo Project Narrative Formo Scope of Work Template (Attachments 6 and 6a)

There are no page limits for the following:o Application Form (Attachment 1)o Budget Forms (Attachment 7)o CEQA Compliance Form (Attachment 8)o Contact List Template (Attachment 10)

Number of Copies of the Application

For Hard Copy Submittal Only: 1 hard copy (with signatures) One electronic copy (on a CD-ROM or USB memory stick)

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B. PREFERRED METHOD FOR DELIVERY

The preferred method of delivery for this solicitation is the Energy Commission Grant Solicitation System, available at: https://gss.energy.ca.gov/. This online tool allows applicants to submit their electronic documents to the Energy Commission prior to the date and time specified in this solicitation. Electronic files must be in Microsoft Word XP (.doc format) and Excel Office Suite formats unless originally provided in the solicitation in another format.  Attachments requiring signatures may be scanned and submitted in PDF format.  Completed Budget Forms, Attachment 7, must be in Excel format.  The system will not allow applications to be submitted after the due date and time.

First time users must register as a new user to access the system. Applicants will receive a confirmation email after all required documents have been successfully uploaded. A tutorial of the system will be provided at the pre-application workshops and you may contact the Commission Agreement Officer identified in the Questions section of the solicitation for more assistance.

C. HARD COPY DELIVERY

An applicant may also deliver a hard copy of an application by:

U.S. Mail In Person Courier service

Applications submitted in hard copy must be delivered to the Energy Commission Contracts, Grants and Loans Office according to the schedule in Section I.G. If applications are delivered prior to the due date shown on this schedule, then they can be delivered during normal business hours (8 am – 5 pm) . Applications received after the specified date and time shown in Section I.G. are considered late and will not be accepted. There are no exceptions to this.  Postmark dates of mailing, E-mail and facsimile (FAX) transmissions are not acceptable in whole or in part, under any circumstances.  There is no need to submit a hard copy of an application that is submitted through the Grant Solicitation System as it will only cause confusion.

Number of CopiesApplicants submitting a hard copy application are only required to submit one paper copy.  Applicants must also submit electronic files of the application on CD-ROM or USB memory stick along with the paper submittal.  Electronic files must be in Microsoft Word XP (.doc format) and Excel Office Suite formats.  Completed Budget Forms, Attachment 7, must be in Excel format. Electronic files submitted via e-mail will not be accepted.

Packaging and LabelingAll hard copy applications must be labeled "Grant Funding Opportunity GFO-17-302," and include the title of the application.

Include the following label information on the mailing envelope:

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Applicant’s Project ManagerApplicant’s NameStreet AddressCity, State, and Zip Code

GFO-17-302Contracts, Grants, and Loans Office, MS-18California Energy Commission1516 Ninth Street, 1st FloorSacramento, California 95814

D. APPLICATION ORGANIZATION AND CONTENT1. For all hard copy submittals, submit attachments in the order specified below.

2. Label the proposal application cover “Grant Funding Opportunity GFO-17-302 and include: (a) the title of the application; and (b) the applicant’s name.

3. Separate each section of the application by a tab that is labeled only with the tab number and section title indicated below.

Tab/Attachment Number

Title of Section

1 Application Form (requires signature)2 Executive Summary3 Fact Sheet4 Project Narrative5 Project Team6 (includes 6a) Scope of Work7 Budget8 CEQA Compliance Form9 References and Work Product10 Contact List11 Commitment and Support Letters (require signature)

Below is a description of each required section of the application. Completeness in submitting are the required information requested in each attachment will be factored into the scoring:

1. Application Form (Attachment 1)This form requests basic information about the applicant and the project. The application includes an original form that includes all requested information. The application must be signed by an authorized representative of the applicant’s organization or will be failed as indicated in Section IV.E.

2. Executive Summary Form (Attachment 2)The Executive Summary includes: a project description; the project goals and objectives to be achieved; an explanation of how the goals and objectives will be achieved, quantified, and measured; and a description of the project tasks and overall management of the agreement.

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3. Fact Sheet Template (Attachment 3)The project fact sheet presents project information in a manner suitable for publication (if the project receives funding, the Energy Commission may use the fact sheet to publicize the project). The fact sheet follows the template, which includes a summary of project specifics and a description of the issue addressed by the project, a project description, and anticipated benefits for the state of California.

4. Project Narrative Form (Attachment 4) This form will include the majority of the applicant’s responses to the Scoring Criteria in Section IV, including the following which must be addressed for Technology Demonstration & Deployment projects (Groups 1, 2 and 3):

a. Group Specific Questions Include required group specific information (see Sections II.B.2 and II.B.3) in

the specified sections.

b. Project Readiness Include information about the permitting required for the project and whether

or not the permitting has been completed. If complete, provide appropriate documentation. If local jurisdiction CEQA review and project approval is not complete, applications must include information documenting progress towards and a schedule for achieving compliance under CEQA within the timeframes specified in this solicitation (see Section I.D). All supporting documentation must be included in Attachment 8.

5. Project Team Form (Attachment 5)Identify by name all key personnel30 assigned to the project, including the project manager and principal investigator (if applicable), and individuals employed by any major subcontractor (a major subcontractor is a subcontractor receiving at least 25% of Commission funds or $100,000, whichever is less). Clearly describe their individual areas of responsibility. Include the information required for each individual, including a resume (maximum two pages, printed double-sided).

6. Scope of Work Template (Attachments 6 and 6a)Applicants must include a completed Scope of Work for each project, as instructed in the template. The Scope of Work identifies the tasks required to complete the project. It includes a project schedule that lists all products, meetings, and due dates. All work must be scheduled for completion within 36 to 48 months of the project start date.

Electronic files for Parts I-IV of the Scope of Work are in MS Word. Part V (Project Schedule, Attachment 6a) is in MS Excel.

7. Budget Forms (Attachment 7)The budget forms are in MS Excel format. Detailed instructions for completing them are included at the beginning of Attachment 7. Read the instructions before completing the

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worksheets. Complete and submit information on all budget worksheets. The salaries, rates, and other costs entered on the worksheets will become a part of the final agreement.

1) All project expenditures (match share and reimbursable) must be made within the approved agreement term. Match share requirements are discussed in Part I of this solicitation. The entire term of the agreement and projected rate increases must be considered when preparing the budget.

2) The budget must reflect estimates for actual costs to be incurred during the agreement term. The Energy Commission may only approve and reimburse for actual costs that are properly documented in accordance with the grant terms and conditions. Rates and personnel shown must reflect the rates and personnel the applicant would include if selected as a Recipient.

3) The proposed rates are considered capped and may not change during the agreement term. The Recipient will only be reimbursed for actual rates up to the rate caps.

4) The budget must NOT include any Recipient profit from the proposed project, either as a reimbursed item, match share, or as part of overhead or general and administrative expenses (subcontractor profit is allowable, though the maximum percentage allowed is 10 % of the total subcontractor rates for labor, and other direct and indirect costs as indicated in the Category Budget form). Please review the terms and conditions and budget forms for additional restrictions and requirements.

5) The budget must allow for the expenses of all meetings and products described in the Scope of Work. Meetings may be conducted at the Energy Commission or by conference call, as determined by the Commission Agreement Manager.

6) Applicants must budget for permits and insurance. Permitting costs may be accounted for in match share (please see the discussion of permits in the Scope of Work, Attachment 6).

7) The budget must NOT identify that EPIC funds will be spent outside of the United States or for out of country travel.  However, match funds may cover these costs if there are no legal restrictions.

8) Prevailing wage requirement: Projects that receive an award of public funds from the Energy Commission often involve construction, alteration, demolition, installation, repair or maintenance work over $1,000. For this reason, projects that receive an award of public funds from the Energy Commission are likely to be considered public works under the California Labor Code. See Chapter 1 of Part 7 of Division 2 of the California Labor Code, commencing with Section 1720 and Title 8, California Code of Regulations, Chapter 8, Subchapter 3, commencing with Section 16000.

Projects deemed to be public works require among other things the payment of prevailing wages, which can be significantly higher than non-prevailing wages.

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By accepting this grant, Recipient as a material term of this agreement shall be fully responsible for complying with all California public works requirements including but not limited to payment of prevailing wage. Therefore, as a material term of this grant, Recipient must either:

(a) Proceed on the assumption that the project is a public work and ensure that:

(i) prevailing wages are paid; and

(ii) the project budget for labor reflects these prevailing wage requirements; and

(iii) the project complies with all other requirements of prevailing wage law including but not limited to keeping accurate payroll records, and complying with all working hour requirements and apprenticeship obligations;

or,(b)Timely obtain a legally binding determination from the Department of Industrial

Relations or a court of competent jurisdiction before work begins on the project that the proposed project is not a public work.

8. California Environmental Quality Act (CEQA) Compliance Form (Attachment 8)The Energy Commission requires the information on this form to facilitate its evaluation of proposed activities under CEQA (California Public Resources Code Section 21000 et. seq.), a law that requires state and local agencies in California to assess the potential environmental impacts of their proposed actions. The form will also help applicants to determine CEQA compliance obligations by identifying which proposed activities may be exempt from CEQA and which activities may require additional environmental review. If proposed activities are exempt from CEQA (such as paper studies), the worksheet will help to identify and document this. This form must be completed regardless of whether the proposed activities are considered a “project” under CEQA.

Failure to complete the CEQA process in a timely manner after the Energy Commission’s Notice of Proposed Award may result in the cancellation of a proposed award and allocation of funding to the next highest-scoring project.

9. Reference and Work Product Form (Attachment 9)1) Section 1 : Provide applicant and subcontractor references as instructed. 2) Section 2 : Provide a list of past projects detailing technical and business experience

of the applicant (or any member of the project team) that is related to the proposed work. Identify past projects that resulted in market-ready technology, advancement of codes and standards, and/or advancement of state energy policy. Include copies of up to three of the applicant or team member’s recent publications in scientific or technical journals related to the proposed project, as applicable.

10. Contact List Template (Attachment 10)The list identifies the names and contact information of the project manager, administrator, accounting officer, and recipient of legal notices.

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11. Commitment and Support Letter Form (Attachment 11)A commitment letter commits an entity or individual to providing the service or funding described in the letter. A support letter details an entity or individual’s support for the project. Commitment and Support Letters must be submitted with the application. Letters that are not submitted by the application deadline will not be reviewed and counted towards meeting the requirement specified in the solicitation.

1) Commitment Letters

All applicants must submit a match funding commitment letter signed by each authorized representative of the entity or individual that is committing to providing match funding. The letter must: (1) identify the source(s) of the funds; and (2) guarantee the availability of the funds for the project.

Since the project involves demonstration or deployment activities, the applicant must include a site commitment letter signed by an authorized representative of the proposed demonstration or deployment site. The letter must: (1) identify the location of the site (street address, parcel number, tract map, plot map, etc.) which must be consistent with Attachments 1 and 8 and (2) commit to providing the site for the proposed activities.

Project partners that are making contributions other than match funding or a demonstration or deployment site, and are not receiving Energy Commission funds, must submit a commitment letter signed by an authorized representative that: (1) identifies how the partner will contribute to the project; and (2) commits to making the contribution.

2) Support Letters

All applicants must include at least one support letter from a project stakeholder (i.e., an entity or individual that will benefit from or be involved in the project) that: (1) describes the stakeholder’s interest or involvement in the project; (2) indicates the extent to which the project has the support of the relevant industry and/or organizations; and (3) describes any support it intends (but does not necessarily commit) to provide for the project, such as funding or the provision of a demonstration or deployment site.

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IV. Evaluation and Award Process A. APPLICATION EVALUATION

Applications will be evaluated and scored based on responses to the information requested in this solicitation. To evaluate applications, the Energy Commission will organize an Evaluation Committee that consists primarily of Energy Commission staff. The Evaluation Committee may use technical expert reviewers to provide an analysis of applications. Applications will be evaluated in two stages:

1. Stage One: Application Screening The Contracts, Grants, and Loans Office and/or the Evaluation Committee will screen applications for compliance with the Screening Criteria in Section E of this Part. Applications that fail any of the screening criteria will be rejected. The Evaluation Committee may conduct optional in-person or telephone Clarification Interviews with applicants during the screening process to clarify and/or verify information submitted in the application. However, these interviews may not be used to change or add to the content of the original application. Applicants will not be reimbursed for time spent answering clarifying questions.

2. Stage Two: Application Scoring Applications that pass Stage One will be submitted to the Evaluation Committee for review and scoring based on the Scoring Criteria in Section F of this Part.

The scores for each application will be the average of the combined scores of all Evaluation Committee members.

A minimum score of 70.00 points is required for the application to be eligible for funding. In addition, the application must receive a minimum score of 49.00 points for criteria 1−4 to be eligible for funding.

Additional Points: Applications must meet both minimum passing scores (Scoring Criteria 1-4 and 1-7) to be eligible for the additional points (Scoring Criteria 8 and 9).

Clarification Interviews: The Evaluation Committee may conduct optional in-personor telephone interviews with applicants during the evaluation process to clarify and/or verify information submitted in the application. However, these interviews may not be used to change or add to the content of the original application. Applicants will not be reimbursed for time spent answering clarifying questions.

B. RANKING, NOTICE OF PROPOSED AWARD, AND AGREEMENT DEVELOPMENT

1. Ranking and Notice of Proposed AwardApplications that receive a minimum score of 70.00 points for all criteria will be ranked according to their score.

The Energy Commission will post a Notice of Proposed Award (NOPA) that includes: (1) the total proposed funding amount; (2) the rank order of applicants; and (3) the amount of each proposed award. The Commission will post the NOPA at its headquarters in Sacramento and on its website, and will mail it to all entities that submitted an application. Proposed awards must be approved by the Commission at a business meeting.

Debriefings: Unsuccessful applicants may request a debriefing after the release of the

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NOPA by contacting the Commission Agreement Officer listed in Part I. A request for debriefing must be received no later than 30 calendar days after the NOPA is released.

In addition to any of its other rights, the Energy Commission reserves the right to:o Allocate any additional funds to passing applications, in rank order; ando Negotiate with successful applicants to modify the project scope, schedule,

and/or level of funding.

2. AgreementsApplications recommended for funding will be developed into a grant agreement to be considered at an Energy Commission Business Meeting. Recipients may begin the project only after full execution of the grant agreement (i.e., approval at an Energy Commission business meeting and signature by the Recipient and the Energy Commission).

Resolution Requirement (for government agency recipients only): Prior to approval of the agreement at a business meeting, government agency recipients (e.g., federal, state, and local governments; air/water/school districts; joint power authorities; and state universities) must provide a resolution that authorizes the agency to enter into the agreement and is signed by a representative authorized to execute the agreement and all documents related to the award. Resolutions must include: (1) a brief description of the project; (2) the award amount; and (3) an acceptance of the award.

Agreement Development: The Contracts, Grants, and Loans Office will send the Recipient a grant agreement for approval and signature. The agreement will include the applicable terms and conditions and will incorporate this solicitation by reference. The Energy Commission reserves the right to modify the award documents (including the terms and conditions) prior to executing any agreement.

Failure to Execute an Agreement: If the Energy Commission is unable to successfully execute an agreement with an applicant, it reserves the right to cancel the pending award and to fund the next highest-ranked, eligible application.

Agreement Amendment: The executed agreement may be amended by mutual consent of the Energy Commission and the Recipient. The agreement may requireamendment as a result of project review, changes in project scope, and/or availability of funding.

C. GROUNDS TO REJECT AN APPLICATION OR CANCEL AN AWARD

Applications that do not pass the screening stage will be rejected. In addition, the Energy Commission reserves the right to reject an application and/or to cancel an award in any of the following circumstances:

The application contains false or intentionally misleading statements or references that do not support an attribute or condition contended by the applicant.

The application is intended to erroneously and fallaciously mislead the State in its evaluation and the attribute, condition, or capability is a requirement of this solicitation.

The application does not comply or contains caveats that conflict with the solicitation, and the variation or deviation is material.

The applicant has previously received funding through a Public Interest Energy Research (PIER) agreement, has received the PIER royalty review letter (which the Energy Commission annually sends out to remind past recipients of their obligations to

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pay royalties), and has not responded to the letter or is otherwise not in compliance with repaying royalties.

The applicant has received unsatisfactory agreement evaluations from the Energy Commission or another California state agency.

The applicant is a business entity that is not in good standing with the California Secretary of State.

The applicant has not demonstrated that it has the financial capability to complete the project.

The applicant fails to meet CEQA compliance within sufficient time for the Energy Commission to meet its encumbrance deadline, as the Energy Commission in its sole and absolute discretion may determine.

The applicant has included a statement or otherwise indicated that it will not accept the terms and conditions, or that acceptance is based on modifications to the terms and conditions.

The application contains confidential information or identifies any portion of the application as confidential.

D. MISCELLANEOUS

1. Solicitation Cancellation and AmendmentIt is the policy of the Energy Commission not to solicit applications unless there is a bona fide intention to award an agreement. However, if it is in the State’s best interest, the Energy Commission reserves the right, in addition to any other rights it has, to do any of the following:

Cancel this solicitation; Revise the amount of funds available under this solicitation; Amend this solicitation as needed; and/or Reject any or all applications received in response to this solicitation.

If the solicitation is amended, the Energy Commission will send an addendum to all entities that requested the solicitation, and will also post it on the Energy Commission’s website at: www.energy.ca.gov/contracts. The Energy Commission will not reimburse applicants for application development expenses under any circumstances, including cancellation of the solicitation.

2. Modification or Withdrawal of ApplicationApplicants may withdraw or modify a submitted application before the deadline to submit applications by sending a letter to the Commission Agreement Officer listed in Part I. Applications cannot be changed after that date and time. An Application cannot be “timed” to expire on a specific date. For example, a statement such as the following is non-responsive to the solicitation: “This application and the cost estimate are valid for 60 days.”

3. ConfidentialityThough the entire evaluation process from receipt of applications up to the posting of the NOPA is confidential, all submitted documents will become publicly available records after the Energy Commission posts the NOPA or the solicitation is cancelled. The Energy Commission will not accept or retain applications that identify any portion as confidential.

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If an applicant discovers any ambiguity, conflict, discrepancy, omission, or other error in the solicitation, the applicant should immediately notify the Energy Commission of the error in writing and request modification or clarification of the solicitation. The Energy Commission will provide modifications or clarifications by written notice to all entities that requested the solicita3tion. The Energy Commission will not be responsible for failure to correct errors.

5. Immaterial DefectThe Energy Commission may waive any immaterial defect or deviation contained in an application. The Energy Commission’s waiver will not modify the application or excuse the successful applicant from full compliance with solicitation requirements.

6. Disposition of Applicant’s DocumentsUpon the posting of the NOPA, all applications and related materials submitted in response to this solicitation will become property of the State and publicly available records. Unsuccessful applicants who seek the return of any materials must make this request to the Agreement Officer listed in Part I, and provide sufficient postage to fund the cost of returning the materials.

E. STAGE ONE: APPLICATION SCREENING

SCREENING CRITERIAThe Application must pass ALL criteria to progress to Stage Two.

Pass/Fail

1. The application is received by the Energy Commission’s Contracts, Grants, and Loans Office by the due date and time specified in the “Key Activities Schedule” in Part I of this solicitation and is received in the required manner (e.g., no emails or faxes).

Pass Fail

2. The application Form (Attachment 1) is signed where indicated. Pass Fail

3. The application addresses only one of the eligible project groups, as indicated on the Application Form.

Pass Fail

4. If the principal applicant has submitted more than one application, the Energy Commission staff will randomly select one application to be evaluated, reviewed and scored. Any other application submitted by the same applicant will be returned without additional action. However, there is no limit on the number of applications that an entity can participate in as a subcontractor or match funding partner.

Pass Fail

5. The Application Form and budget specify that the applicant will provide at least 20% match funding if the requested EPIC project fund is $5,000,000 or less or at least 25% match funding if the requested EPIC project fund is more than $5,000,000 but not exceeding $7,000,000.

Pass Fail

6. Since the project involves demonstration and deployment activities:o The Application Form identifies one or more test/

Pass Fail

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SCREENING CRITERIAThe Application must pass ALL criteria to progress to Stage Two.

Pass/Fail

demonstration and deployment site locations.o All test/ demonstration and deployment sites are located in a

California electric IOU service territory (PG&E, SDG&E, or SCE).

7. The proposal includes one or more match funding commitment letter (Section III.D.11).

Pass Fail

8. The proposal includes a site commitment letter (Section III.D.11). Pass Fail

9. The proposal includes projects partners commitment letters (Section III.D.11).

Pass Fail N/A (project

does not involve projects partners that are making contributions other than match funding or site commitment)

10. The proposal includes at least one support letter from a project stake holder (Section III.D.11).

Pass Fail

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F. STAGE TWO: APPLICATION SCORING

Proposals that pass ALL Stage One Screening Criteria and are not rejected as described in Section IV.C. will be evaluated based on the Scoring Criteria on the next page and the Scoring Scale below (with the exception of criteria 6−8, which will be evaluated as described in each criterion). Each criterion has an assigned number of possible points, and is divided into multiple sub-criteria. The sub-criteria are not equally weighted. The Project Narrative (Attachment 4) must respond to each sub-criterion, unless otherwise indicated. The minimum passing score for criteria 1−4 is 49.00 points and the total minimum

passing score is 70.00 out of 100 points for criteria 1-7. The points for criteria 5−7 will only be applied to proposals that achieve the minimum score

for criteria 1−4. The points for criteria 8-10 will only be applied to proposals that achieve the minimum scores for criteria 1-4 and criteria 1-7.

SCORING SCALE

% of Possible Points

Interpretation Explanation for Percentage Points

0% Not Responsive

The response fails to address the criteria. The omissions, flaws, or defects are significant and

unacceptable.

10-30% Minimally Responsive

The response minimally addresses the criteria. The omissions, flaws, or defects are significant and only

minimally acceptable.

40-60% Inadequate

The response addresses the criteria. There are one or more omissions, flaws, or defects or the

criteria are addressed in a limited way that results in a low degree of confidence in the proposed solution.

70% Adequate The response adequately addresses the criteria. Any omissions, flaws, or defects are inconsequential and

acceptable.

80% Good

The response fully addresses the criteria with a good degree of confidence in the applicant’s response or proposed solution.

There are no identified omissions, flaws, or defects. Any identified weaknesses are minimal, inconsequential, and acceptable.

90% Excellent

The response fully addresses the criteria with a high degree of confidence in the applicant’s response or proposed solution.

The applicant offers one or more enhancing features, methods, or approaches that exceed basic expectations.

100% Exceptional

All criteria are addressed with the highest degree of confidence in the applicant’s response or proposed solution.

The response exceeds the requirements in providing multiple enhancing features, a creative approach, or an exceptional solution.

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SCORING CRITERIA

The Project Narrative (Attachment 4) must respond to each criterion below, unless otherwise indicated. The responses must directly relate to the solicitation requirements and focus as stated in Section I.A. and Section II.B. Failure to comply with the solicitation could be grounds for application rejection as stated in Section IV.C.

Scoring Criteria Maximum Points

1. Technical Merit and Needa. Provides a clear and concise description of the goals, objectives,

technological or scientific knowledge advancement, and innovation in the proposed project.

b. Explains how the proposed project will lead to technological advancement and breakthroughs that overcome barriers to achieving the State’s statutory energy goals.

c. Summarizes the current status of the relevant technology and/or scientific knowledge, and explains how the proposed project will advance, supplement, and/or replace current technology and/or scientific knowledge.

d. Justifies the need for EPIC funding, including an explanation of why the proposed work is not adequately supported by competitive or regulated markets.

e. Discusses the degree to which the proposed work is technically feasible and achievable within the proposed project schedule in Attachment 6a and the key activities schedule in Section I.F

f. Provides a clear and plausible measurement and verification plan that describes how energy savings and other benefits specified in the application will be determined and measured.

g. Provides information documenting progress towards achieving compliance with the California Environmental Quality Act (CEQA) and other applicable environmental review requirements by addressing the areas in Section I.D, and Section III.D.4, and Section III.D.8.

h. Provides information described in Section II.B.2.

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2. Technical Approacha. Describes the technique, approach, and methods to be used in performing

the work described in the Scope of Work. Highlights any outstanding features.

b. Describes how tasks will be executed and coordinated with various participants and team members.

c. Identifies and discusses factors critical for success, in addition to risks,

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barriers, and limitations. Provides a plan to address them.

d. Describes how the knowledge gained, experimental results, and lessons learned will be made available to the public and key decision-makers.

e. Includes a complete Scope of Work and Project Schedule, as instructed in Attachments 6 and 6a.

f. Provides information described in Section II.B.2.

3. Impacts and Benefits for California IOU Ratepayersa. Explains how the proposed project will benefit California Investor-Owned

Utility (IOU) ratepayers with respect to the EPIC goals of greater reliability, lower costs, and/or increased safety and its component guiding principles.

b. Provides clear, plausible, and justifiable quantitative estimates of potential benefits for California IOU electricity ratepayers, including the following (as applicable): annual electricity and thermal savings (kilowatt-hour and therm), peak load reduction and/or shifting, other duck curve mitigation, energy cost reductions, technology cost reductions, greenhouse gas emission reductions, air emission reductions (e.g., NOx), and water use and/or cost reductions.

c. States the timeframe, assumptions, and calculations for the estimated benefits, and explains their reasonableness.

d. Identifies impacted market segments in California, including size and penetration or deployment rates, with underlying assumptions.

e. Discusses any qualitative or intangible benefits to California IOU electricity ratepayers, including timeframe and assumptions.

f. Provides a cost-benefit analysis that compares project costs to anticipated benefits. Explains how costs and benefits will be calculated and quantified, and identifies any underlying assumptions.

g. Provides information described in Section II.B.3.

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4. Team Qualifications, Capabilities, and Resourcesa. Describes the organizational structure of the applicant and the project

team. Includes an organizational chart that illustrates the structure.

b. Identifies key team members, including the project manager and principal investigator (include this information in Attachment 5, Project Team Form).

c. Summarizes the qualifications, experience, capabilities, and credentials of the key team members (include this information in Attachment 5, Project Team Form).

d. Explains how the various tasks will be managed and coordinated, and how the project manager’s technical expertise will support the effective

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management and coordination of all projects in the application.

e. Describes the facilities, infrastructure, and resources available to the team.

f. Describes the team’s history of successfully completing projects (e.g., RD&D projects) and commercializing and/or deploying results/products.

g. Identifies past projects that resulted in a market-ready technology (include this information in Attachment 9, Reference and Work Product Form).

h. References are relevant to the proposed project and are current, meaning within the past three years (include this information in Attachment 9, Reference and Work Product Form).

i. Identifies any collaborations with utilities, industries, or others. Explains the nature of the collaboration and what each collaborator will contribute.

j. Demonstrates that the applicant has the financial ability to complete the project, as indicated by the responses to the following questions:

Has your organization been involved in a lawsuit or government investigation within the past five years?

Does your organization have overdue taxes? Has your organization ever filed for or does it plan to file for

bankruptcy? Has any party that entered into an agreement with your

organization terminated it, and if so for what reason? For Energy Commission agreements listed in the application that

were executed (i.e., approved at a Commission business meeting and signed by both parties) within the past five years, has your organization ever failed to provide a final report by the date indicated in the agreement?

k. Support or commitment letters (for match funding, test sites, or project partners) indicate a strong level of support or commitment for the project.

Total Possible Points for criteria 1−4(Minimum Passing Score for criteria 1−4 is 49.00) 70

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5. Budget and Cost-Effectivenessa. Budget forms are complete, as instructed in Attachment 7.b. Justifies the reasonableness of the requested funds relative to the project

goals, objectives, and tasks.c. Justifies the reasonableness of costs for direct labor, non-labor (e.g.,

indirect overhead, general and administrative costs, and subcontractor profit), and operating expenses by task.

d. Explains why the hours proposed for personnel and subcontractors are reasonable to accomplish the activities in the Scope of Work (Attachment 6).

e. Explains how the applicant will maximize funds for the technical tasks in Part IV of the Scope of Work and minimize expenditure of funds for program administration and overhead.

f. The requested funding falls within the minimum and maximum range specified in Part I of this solicitation.

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6. EPIC Funds Spent in CaliforniaProjects that spend EPIC funds in California will receive points as indicated in the table below. “Spent in California” means that: (1) Funds under the “Direct Labor” category and all categories calculated based on direct labor (Prime and Subcontractor Labor Rates) are paid to individuals who pay California state income taxes on wages received for work performed under the agreement; and/or (2) Business transactions (e.g., material and equipment purchases, leases, rentals, and contractual work) are entered into with a business located in California.

Airline ticket purchases for out-of-state travel and payments made to out-of-state workers are not considered funds “spent in California.” However, funds spent by out-of-state workers in California (e.g., hotel and food) and airline travel originating and ending in California are considered funds “spent in California.”

Percentage of EPIC funds spent in CA(derived from budget Attachment 7)

Percentage of Possible Points

>60% 20%>70% 40%>80% 60%>90% 80%>98% 100%

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7. Ratio of Direct Labor and Fringe Benefit Rates to Loaded Labor Costs

The score for this criterion will derive from the Category Budget in the budget forms, which compare the total Energy Commission funds for the direct labor and fringe benefits costs to the total loaded costs (Total Direct Labor + Total Fringe)/ (Total Direct Labor + Total Fringe + Total Indirect + Total Profit). This ratio, as a percentage, is multiplied by the possible points for this criterion and rounded to two decimal places. For the purpose of this criteria, the Energy

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Commission will include the facility charges (e.g., rent, utilities, etc.), burdens and other like costs that are budgeted as direct costs into the indirect costs in the formula.

Total Possible Points for criteria 1−7(Minimum Passing Score for criteria 1−7 is 70.00) 100

Additional Points Applications must meet both minimum passing scores (Scoring Criteria 1-4 and 1-7) to be eligible for the additional points.

8. Match Funding above the 20% Minimum for applicants requesting $5,000,000 or less in EPIC Funds or match funding above the 25% minimum for applicants requesting more than $5,000,000 but not exceeding $7,000,000 in EPIC Funds

Each match funding contributor above the minimum must submit a commitment letter that meets the requirements of Attachment 11. Failure to meet these requirements will affect the match funding points.

Points for this criterion will be awarded as follows:o 5 points will be awarded based on the percentage of match funding

that exceeds the minimum match funding amount divided by the total amount of EPIC funds requested. This ratio will be multiplied by 5 to yield the points.For example: If requested EPIC funds are $1,000,000, the applicant must provide at least $200,000 (20% of $1,000,000) in match funding. If the applicant pledged $500,000 in match funding, the amount that will be evaluated for additional points is $300,000. The match funding ratio is 0.30. (5 x 0.30 = 1.5 points).

o 5 points will be awarded based on the level of commitment above the minimum percentage and will consider type of match funding (cash in hand funds will be considered more favorably than other types of match funding), dollar value justification, and funding replacement strategy described in the match funding commitment letter for the amount above the minimum (see Attachment 11). The proposal scoring scale in Section F will be used to rate these criteria.

Any match funding pledged in Attachment 1 must be consistent with the amount or dollar value described in the commitment letter(s) (e.g., if $5,000 “cash in hand” funds are pledged in a commitment letter, Attachment 1 must match this amount). Only the total amount pledged in the commitment letter(s) will be considered for match funding points.

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Scoring Criteria Maximum Points

9. Disadvantaged CommunitiesProjects in Group 1 and 3 with all demonstration sites located in disadvantaged communities must justify how the project will benefit the disadvantaged community in order to receive additional points. Partial points will be awarded for demonstration sites which are not located in disadvantaged communities but nevertheless will directly benefit them.

A disadvantaged community is identified by census tract and represents the 25% highest scoring tracts in CalEnviroScreen 3.0 or later versions31.

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