request for proposal 000-00-000 · web viewthe proposal includes one or more support letters and...

GRANT FUNDING OPPORTUNITY

ADVANCING NATURAL GAS ENERGY EFFICIENCY RESEARCH IN EXISTING BUILDINGS AND BAKING

INDUSTRY

GFO-18-503http://www.energy.ca.gov/contracts/index.html

State of CaliforniaCalifornia Energy Commission

December 2018 (revised 1/28/19)

rev. 10/2016

http://www.energy.ca.gov/contracts/index.html

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

A. PURPOSE OF SOLICITATION................................................................................................................1B. KEY WORDS/TERMS.......................................................................................................................... 1C. APPLICANTS’ ADMONISHMENT.............................................................................................................6D. ADDITIONAL REQUIREMENTS................................................................................................................6E. BACKGROUND.................................................................................................................................... 7F. FUNDING......................................................................................................................................... 11G. KEY ACTIVITIES SCHEDULE...............................................................................................................14H. NOTICE OF PRE-APPLICATION WORKSHOP........................................................................................15I. QUESTIONS..................................................................................................................................... 16

II. ELIGIBILITY REQUIREMENTS...........................................................................................18A. APPLICANT REQUIREMENTS..............................................................................................................18B. PROJECT REQUIREMENTS................................................................................................................19

III. APPLICATION ORGANIZATION AND SUBMISSION INSTRUCTIONS............................30A. APPLICATION FORMAT, PAGE LIMITS, AND NUMBER OF COPIES..........................................................30B. PREFERRED METHOD FOR DELIVERY................................................................................................31C. HARD COPY DELIVERY....................................................................................................................31D. APPLICATION ORGANIZATION AND CONTENT......................................................................................32

IV. EVALUATION AND AWARD PROCESS............................................................................38A. APPLICATION EVALUATION................................................................................................................38B. RANKING, NOTICE OF PROPOSED AWARD, AND AGREEMENT DEVELOPMENT......................................38C. GROUNDS TO REJECT AN APPLICATION OR CANCEL AN AWARD.........................................................39D. MISCELLANEOUS.............................................................................................................................. 40E. STAGE ONE: APPLICATION SCREENING............................................................................................42F. STAGE TWO: APPLICATION SCORING...............................................................................................44

GFO-18-503January 2019 Page i Advancing Natural Gas Energy

Efficiency Research in Existing Buildings and Baking Industry

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 California Based Entity (CBE) Form

13 References for Calculating Energy End-Use and GHG Emissions

GFO-18-503January 2019 Page ii Advancing Natural Gas Energy

Efficiency Research in Existing Buildings and Baking Industry

I. Introduction

A. PURPOSE OF SOLICITATION The purpose of this solicitation is to develop, demonstrate, and validate the energy savings from advanced energy saving technologies and strategies to reduce natural gas use and greenhouse gas (GHG) and other emissions in California’s building and baking sectors.

Projects funded from this solicitation must be in one of the following areas:

Bakeries:

Demonstrate and deploy pre-commercial or emerging energy efficiency equipment and technologies to increase efficiency and reduce GHG and other emissions in commercial, wholesale and industrial-sized bakeries. Projects must have the potential to recover the capital cost from energy savings within five years.

Buildings:

Improve the energy efficiency, and reduce GHG and other air emissions from residential gravity and forced air wall and floor room heaters through targeted tests of alternative technologies or strategies that show sufficient cost savings and other benefits to recover the capital cost within the life of the new technology/strategy.1 The recommendations could be used to justify changes to future energy efficiency codes and standards. Targeted sectors are low-income single and multifamily buildings.

Improve the efficiency of hot water distribution systems in existing homes built on concrete slab foundations without insulated hot water pipes through development and test of alternative technologies or strategies that show sufficient cost savings and other benefits to recover the capital cost within 10 years when compared to existing, uninsulated pipes.2

Develop and test advanced insulation materials for existing homes that have little or no wall insulation with the goal of showing sufficient cost savings and other benefits to recover the cost within 10 years when compared to existing uninsulated walls.3

Energy generation, such as cogeneration and fuel cells, and use of renewable energy (e.g., biomass and biofuels), storage technologies and fuel switching (e.g. natural gas to lower energy alternatives) are not eligible for funding under this solicitation.

Though relatively clean compared to other fossil fuels, burning natural gas still emits GHG and other emissions. Natural gas use in 2015 generated an estimated 440.4 million metric tons of

1 Young, Jim, Field Demonstration of High-Efficiency Gas Heaters, Better Buildings, U.S. Department of Energy, October 2014. www.energy.gov/sites/prod/files/2014/11/f19/gas_heater_demo_report_2.pdf.2 Extrapolation from CEC Benefits Analysis of the 2008 Title 24 Building Energy Standards Change. Underground pipe insulation saves on average 61 therms/year per household. If average natural gas cost is $1.20/therm (US EIA, https://www.eia.gov/dnav/ng/ng_pri_sum_dcu_SCA_m.htm) then this results in savings of about $73/year. Costs for installing and replacing plumbing pipes and repairing walls and floors $3500-$16,000). Source: https://www.homeadvisor.com/cost/plumbing/install-new-plumbing-pipes/. 3 Kosny, Jan, et al., Cost Analysis of Simple Phase Change Material-Enhanced Building Envelopes in Southern U.S. Climates, National Renewable Energy Laboratory, January 2013, www.nrel.gov/docs/fy13osti/55553.pdf.

January 2019 Page 1 GFO-18-503Advancing Natural Gas Energy Efficiency Research in Existing Buildings and Baking Industry

http://www.nrel.gov/docs/fy13osti/55553.pdf

https://www.homeadvisor.com/cost/plumbing/install-new-plumbing-pipes/

https://www.eia.gov/dnav/ng/ng_pri_sum_dcu_SCA_m.htm

GHG emissions, of which the industrial sector contributed 23 percent.4 California’s baking industry alone uses an estimated 60 million therms per year of natural gas with annual GHG emission estimated at 300,000 metric tons.

California’s residential and commercial buildings sectors use an estimated 6.2 billion therms per year and contributed 11 percent of the state’s GHG emission total. The major uses of natural gas in the building sector are for water and space heating.

For California to achieve its aggressive climate and energy goals, natural gas research is needed to develop and test advanced solutions and strategies that can decrease natural gas use and reduce GHG and other emissions, while also reducing costs for residents, industries and businesses. For industries and businesses, it can also keep them competitive in California.

The goals of this solicitation are:

Develop, test and demonstrate technologies that can increase energy efficiency and reduce the technology installation and operating costs and have the potential of being competitive with conventional systems.

Assist the building and baking sectors achieve 2030 energy efficiency and GHG reduction goals.

To provide benefits of reduced air emissions and GHG emissions.

To improve health and safety of building and plant occupants and the community.

Projects must benefit California natural gas Investor Owned Utility (IOU) ratepayers and the demonstration, deployment, and pilot test sites must be located in the service territory of Pacific Gas and Electric Company, San Diego Gas & Electric Company, or Southern California Gas Company (refer to Part II.A.1.). All projects in this solicitation must fall within the following project groups:

Group 1: Demonstrate and deploy pre-commercial or emerging energy efficient and GHG emission reducing technologies for the commercial, wholesale and industrial baking sector

Group 2: Improve efficiency and reduce GHG and other emissions from residential room and wall heaters

Group 3: Improve hot water distribution system efficiency in existing homes

Group 4: Develop advanced insulation for existing homes using phase change materials

Group 1 solicits projects that demonstrate and deploy emerging energy saving technologies that can directly reduce natural gas use in commercial, wholesale and industrial-sized bakeries. Technologies can be either pre-commercial or emerging, but must have a pathway to commercialization and demonstrate market interest and demand if the demonstration is successful. The technologies must be past the proof-of-concept stage and be ready to demonstrate in commercial, wholesale and industrial bakeries under real-world operational conditions. To be eligible a technology must have at least 500 hours of performance testing (e.g., field, lab, bench-scale, pilot-scale) and have verified data to justify that the technology is ready for demonstration. Additionally, 6-12 months of independent third-party measurement and verification is required during the grant agreement period to address the energy savings, economic, environmental and other benefits at each demonstration site. See Part II.B.3. for

4 California Air Resources Board, California Greenhouse Gas Emission Inventory, https://www.arb.ca.gov/cc/inventory/data/data.htm


https://www.arb.ca.gov/cc/inventory/data/data.htm

additional information on baseline measurement. A minimum of one demonstration site is required as part of the application. The applicant must verify the feasibility of the demonstration site to use the technology to be demonstrated. If an alternate demonstration site is required during the grant agreement period, the applicant is responsible for securing the replacement site. Grant funds cannot be used for site assessments or costs associated with securing any replacement sites added later. The Energy Commission reserves the right to issue a stop work order until alternate sites are located.

Groups 2, 3 and 4 solicit applied research and development projects that support pre-commercial or emerging technologies and approaches. These projects include prototype and pilot testing to support implementation of space heating, hot water distribution systems, and advanced insulation practices solutions. Activities include early, pilot-scale testing of a minimum of 12 months, to test and demonstrate the feasibility of pre-commercial technologies or strategies during the grant agreement period. For groups 2, 3 and 4, the pilot test period must include sufficient time to estimate the impact on natural gas consumption and cost benefit on the proposed technology or strategy, such as during the winter months, if seasonal. See Part II.B.3. for additional information on baseline measurement. A minimum number of pilot test site(s) are required as part of the application. The applicant must verify the feasibility of the pilot test sites to use the technology to be tested. See Part II.B.2. for specifics on number of test sites required for each project group. If an alternate test site is required during the grant agreement period, the applicant is responsible for securing the replacement site. Grant funds cannot be used for site assessments or costs associated with securing any replacement site added later. The Energy Commission reserves the right to issue a stop work order until alternate test sites are located.

This is an open solicitation and the Energy Commission will accept applications according to the schedule in Part G or until funds are exhausted. The highest scoring proposals for each group will be selected. If no proposals pass in a group, the funds allocated to that group may be reallocated to passing proposals in the other groups. See Part I.B. for applicant definition and Part II.B.2 for further information.

Projects located in a disadvantaged or low-income community will qualify for additional points during the scoring phase (See Part IV). Senate Bill 350 (De León, Chapter 547, Statutes of 2015) prioritizes maximizing benefits to low-income customers and those in disadvantaged communities. Project groups in this solicitation have components that may benefit disadvantaged or low-income communities.

See Part II of this solicitation for project eligibility requirements. Applications will be evaluated as follows: Stage One proposal screening and Stage Two proposal scoring. Applicants may submit multiple applications, though each application may address only one of the project groups identified above. If an applicant submits multiple applications that address the same project group, each application must be for a distinct project (i.e., no overlap with respect to the tasks described in the Scope of Work, Attachment 6).


B. KEY WORDS/TERMS

Word/Term DefinitionAdvanced Heat Recovery

Heat recovery technologies that can yield energy cost savings in excess of 20 percent5

Applicant The respondent to this solicitation

Application An applicant’s formal written response to this solicitation

Baking Sector For this solicitation, the baking sector includes commercial, wholesale and industrial-sized bakeries only.

Best Available Technologies that are commercially available but exceed current efficiencies of commonly deployed standard equipment used in the baking industry. For instance if the standard bakery oven has an efficiency of 30 percent, and there are oven technologies that have efficiencies of 40 percent, then the latter would be considered best available.

Business Transaction in California

Business transaction in California means the transaction is with a business registered with Secretary of State AND the transaction is with a business that substantially manufactures or sells the product within California, or substantially performs the research within California that is the subject of the award.

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

Days Days refers to calendar days

Demonstration A demonstration project is defined as one which utilizes equipment and systems with at least 500 hours of performance test, and is ready to be operated in real-world operating conditions

Disadvantaged Community

These are communities defined as areas representing census tracts scoring in the top 25 % in CalEnviroScreen 3.0. https://www.arb.ca.gov/cc/capandtrade/auctionproceeds/communityinvestments.htm

Low-Income Community

These are communities defined as areas representing census tracts with median household incomes at or below eighty percent of the statewide median income.https://www.arb.ca.gov/cc/capandtrade/auctionproceeds/communityinvestments.htm

Emerging Technology New technologies that have significant energy savings potential but 5 Arzbaecher, C., Fouche, E., Paramenter, K., Industrial Waste-Heat Recovery: Benefits and Recent Advancements in Technology and Applications, 2007 ACEEE Summer Study on Energy Efficiency in Industry. https://aceee.org/files/proceedings/2007/data/papers/05_2_048.pdf


https://www.arb.ca.gov/cc/capandtrade/auctionproceeds/communityinvestments.htm




Word/Term Definitionhave not yet achieved sufficient market share to become self-sustaining or commercially viable.

Energy Commission California Energy Commission

Heater Direct heating equipment designed to furnish warmed air to the living space of a residence, directly from the device, without duct connections. Direct heating products do not use ducts to move heated air throughout a home, but heat is moved via natural or forced convection to other parts of the home.

NG IOU Natural Gas Investor-owned utility, including Pacific Gas and Electric Co., San Diego Gas and Electric Co., and Southern California Gas Co.

NOPA Notice of Proposed Award, a public notice that identifies award recipients

Pre-Commercial Technology

A technology that has not reached commercial maturity or been deployed at scale sufficiently large and in conditions sufficiently reflective of anticipated actual operating environments to enable the appraisal of operational and performance characteristics and the financial risks

Principal Investigator The lead scientist or engineer for the applicant’s project, who is responsible for overseeing the project; in some instances, the PrincipaI 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 site), and does not receive Energy Commission funds

Recipient The recipient of an award under this solicitation

Solicitation This entire document, including all attachments and exhibits (“solicitation” may be used interchangeably with “Grant Funding Opportunity”)

State State of California


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 located at: http://www.energy.ca.gov/research/contractors.html.

Applicants are responsible for the cost of developing applications. This cost cannot be charged to the State. All submitted documents will become public 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, 2019. This means that the Energy Commission must approve proposed awards at a business meeting (usually held monthly) prior to June 30, 2019 in order to avoid expiration of the funds. Prior to approval and encumbrance, the Energy Commission must comply with the California Environmental Quality Act (CEQA). 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. Unfortunately, even with this information, the Commission may not be able to complete its CEQA review prior to the encumbrance deadline for every project. For example, if 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 provide all CEQA-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.

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 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 review. Examples of situations that may arise related to CEQA 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.


http://www.energy.ca.gov/research/contractors.html

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 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 within the encumbrance deadline, and are only provided as further clarification for potential applicants. Please plan project proposals accordingly.

E. BACKGROUND

1. Natural Gas R&D ProgramThis solicitation will award projects under the Natural Gas program, which is funded by a ratepayer surcharge on natural gas consumed by ratepayers of NG IOUs in California (see California Public Utilities Code section 890). The California Public Utilities Commission (CPUC) designated the California Energy Commission as administrator of the program in August 20046. The purpose of the program is to benefit California natural gas ratepayers by funding public interest research and development activities, which the CPUC has defined as “developing science or technology, the benefits of which accrues to California citizens and are not adequately addressed by competitive or regulated entities.”7

2. Program Areas, Strategic Objectives, and Funding Initiatives

6 See CPUC Decision 04-08-010, August 19, 2004, http://docs.cpuc.ca.gov/PublishedDocs/WORD_PDF/FINAL_DECISION/39314.PDF.7 Id. at pp. 25 and 46.


http://docs.cpuc.ca.gov/PublishedDocs/WORD_PDF/FINAL_DECISION/39314.PDF

Natural Gas RD&D projects must fall within one or more specific focus areas (“funding initiatives”) identified in the Natural Gas Research, Development, and Demonstration Budget Plan. This solicitation targets the following funding initiatives from the Natural Gas Research, Development, and Demonstration Budget Plans for Fiscal Years 2016/2017, and 2017-18.8 9:

Natural Gas Research, Development and Deployment Program, Proposed Program Plan and Funding Request for Fiscal Year 2017-18

Program Investment Area: Energy Efficiency

o Research Funding Initiative: Increase Efficiency and Reduce GHG Emissions from Natural Gas Using Facilities

o Research Funding Initiative: Improving Building Envelopes in Existing Buildings Cost Effectively

Natural Gas Research, Development and Deployment Program, Proposed Reliability and Climate Focused Natural Gas Supplemental Budget Plan for Fiscal Year 2016-17


o Research Funding Initiative: Water Heating in Existing Buildings

Natural Gas Research, Development and Deployment Program, Proposed Program Plan and Funding Request for Fiscal Year 2016-17


o Research Funding Initiative: Industrial, Agriculture and Water Efficiency: Natural Gas Efficiency Research and Demonstration/Heat Recovery and Improved Combustion Processes

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) 3210 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. 8 CPUC Resolution G-3524 approving the Fiscal Year 2016-17 Natural Gas Supplemental http://docs.cpuc.ca.gov/publisheddocs/published/g000/m185/k176/185176749.pdf9 2017. Natural Gas Research and Development Program, Proposed Program Plan and Funding Request for Fiscal Year 2017-18.http://www.energy.ca.gov/2017publications/CEC-500-2017-039/CEC-500-2017-039.pdf 10 AB 32 (Statutes of 2006, chapter 488)


http://www.energy.ca.gov/2017publications/CEC-500-2017-039/CEC-500-2017-039.pdf

http://docs.cpuc.ca.gov/publisheddocs/published/g000/m185/k176/185176749.pdf

AB 758, Building Efficiency11, Statutes of 2009AB 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 an 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

Senate Bill (SB) 35012 Clean Energy and Pollution Reduction Act of 2015SB 350 does the following: 1) expands California’s Renewable Portfolio Standard 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.

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

SB 3213 California Global Warming Solutions Act of 2006

SB 32 codified a GHG emission reduction target of 40 percent below 1990 levels no later than December 31, 2030.

Additional information: https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201520160SB32

Applicable Law: California Health and Safety Code §§ 38566.

AB 3232 Zero-emission Buildings and Sources of Heat Energy Act of 2018

AB 3232 directs state agencies to work together to assess what actions should be taken to reduce emissions from the state’s residential and commercial buildings, recognizing the important work needed to reduce our greenhouse gas emissions from the building sector.

Additional information: https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201720180AB3232

Policies/Plans

Integrated Energy Policy Report (Biennial)

11 AB 758 (Statutes of 2009, chapter 470)12 SB 350 (Statutes of 2015, chapter 547)13 SB 32 (Statutes of 2016, chapter 249)


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.

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

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://www.energy.ca.gov/ab758/

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.

Reference Documents

Refer to the link below for information about past Energy Commission research projects and activities:

Energy Commission R&D website: http://www.energy.ca.gov/research/


Natural Gas Research Program: http://www.energy.ca.gov/naturalgas_research/ Industrial, Agriculture and Water Research:

Demonstration of an Advanced Low NOx Ribbon Burner Combustion System for Industrial Bakeries: http://innovation.energy.ca.gov/SearchResultProject.aspx?p=30121&tks=636724730296898979

Wang, Warren. (Navigant Consulting, Inc.). 2011. PIER Industrial, Agricultural, and Water Energy Efficiency Program RD&D Targets: Consolidated Roadmap. California Energy Commission. Publication Number: CEC-500-2011-035. http://www.energy.ca.gov/2011publications/CEC-500-2011-035/CEC-500-2011-035.pdf

Buildings End-Use Energy Efficiency Research: Lutz J.D. (Lawrence Berkeley National Laboratory). 2008. Water Heaters and Hot

Water Distribution Systems. California Energy Commission, PIER Buildings End-Use Energy Efficiency. CEC-500-2005-082. http://www.energy.ca.gov/2008publications/CEC-500-2008-082/CEC-500-2008-082.PDF

Lutz, James; Peter Biermayer; Derek King. (Lawrence Berkeley National Laboratory). 2009. Pilot Phase of Field Study to Determine Waste of Water and Energy in Residential Hot Water Distribution Systems. California Energy Commission. Publication number: CEC-500-2013-135. http://www.energy.ca.gov/2013publications/CEC-500-2013-135/CEC-500-2013-135.pdf

Kosar, Douglas, Paul Glanville, Hillary Vadnal. Gas Technology Institute. 2012. Residential Water Heating Program. California Energy Commission. Publication number: CEC-500-2013-060. http://www.energy.ca.gov/2013publications/CEC-500-2013-060/CEC-500-2013-060.pdf

Zhang, Yanda. (Heschong Mahone Group). 2013. Multifamily Central Domestic Hot Water Distribution Systems. California Energy Commission. Publication number: CEC-500-2013-011. http://www.energy.ca.gov/2013publications/CEC-500-2013-011/CEC-500-2013-011.pdf

Improve Energy Efficiency of Hot Water Distribution Systems in Multifamily Buildings http://innovation.energy.ca.gov/SearchResults.aspx?tks=636727181894772785

Robust Super Insulation at a Competitive Price http://innovation.energy.ca.gov/SearchResults.aspx?tks=636727184013266365

Tools and Materials for Zero Net Energy California Buildings http://innovation.energy.ca.gov/SearchResultProject.aspx?p=29529&tks=636727185099033325

Comparing Attic Approaches for Zero Net Energy Homes, http://innovation.energy.ca.gov/SearchResultProject.aspx?p=30006&tks=636727185461111646

Energy Commission Energy Innovation Showcase: http://innovation.energy.ca.gov/SearchHome.aspx?ti=636650993521557588

F. FUNDING

1. Amount Available and Minimum/ Maximum Funding Amounts


There is up to $9,470,000 available for grants awarded under this solicitation. All project expenditures (including match share) must be made within the approved term of the grant agreement. 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 (% of Natural Gas Funds Requested)

Group 1: Demonstrate and deploy pre-commercial or emerging energy efficient and GHG emission reducing technologies for the commercial, wholesale and industrial baking sector

$4,400,000 $1,000,000 $4,400,000 20% of requested Energy Commission funding amount

Group 2 Improve efficiency and reduce GHG and other emissions from residential room and wall heaters

$2,000,000 No minimum $2,000,000 No match required

Group 3: Improve hot water distribution system efficiency in existing homes

$1,500,000 $1,500,000 No match required

Group 4: Develop advanced insulation for existing homes using phase change materials

$1,570,000 $1,570,000 No match required

2. Match Funding RequirementFor Group 1, match funding is required in the amount of at least 20 percent of the California Energy Commission funds that you are requesting. Applicants that provide more than this amount will receive additional points during the scoring phase (See Part IV).

Match funding is not required for Groups 2, 3, and 4. However, applicants that include match funding will receive additional points during the scoring phase (See Part IV).


The following are potential sources of match funds:

“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).

“Match funds” do not include: Energy Commission awards, future/contingent awards from other entities (public or private), other state and federal grants that are not directly applicable to the proposed technology, the cost or value of the project work site, or the cost or value of structures or other improvements affixed to the project work site permanently or for an indefinite period of time or the use of any equipment already purchased.

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 and have not been expended). 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 excludes travel to conferences. Use of match funds for out-of-state travel and travel to conferences is encouraged. Applicants should be aware of and shall adhere to restrictions of using state funds to travel to certain other states pursuant to AB 1887 (2016) and codified at California Government Code Section 11139.8. All applicants should go to the Attorney General’s website https://oag.ca.gov/ab1887 for a current list of states subject to travel restrictions. Grants awarded under this solicitation shall not contain travel paid for with Commission funds (applicants can instead use match funds) to the listed states unless the Commission approves in writing that the trip falls within one of the exceptions under the law.

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, either before or concurrently with Energy Commission funds. Match funds must also 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 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.

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. Reallocate funding between any of the groups 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.


ACTIVITY DATE TIME14

Solicitation Release December 20, 2018Pre-Application Workshop January 11, 2019 10:00 a.m.Deadline for Written Questions15 January 14, 2019 5:00 p.m.Anticipated Distribution of Questions and Answers Week of January 28, 2019Deadline to Submit Applications February 15, 2019 5:00 p.m.Anticipated Notice of Proposed Award Posting Date Week of March 4, 2019Anticipated Energy Commission Business Meeting Date June 12, 2019

Anticipated Agreement Start Date June 30, 2019Anticipated Agreement End Date March 30, 2023

H. NOTICE OF PRE-APPLICATION WORKSHOP

Energy Commission staff will hold one Pre-Application Workshop 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.

Date and time: January 11, 2019 starting at 10:00 a.m.Location: California Energy Commission

1516 9th StreetSacramento, CA 95814Imbrecht Hearing Room

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: 925 100 244Meeting Password: (no password required)Topic: Pre-Application Workshop GFO-18-503

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 callersmay 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

14 Pacific Standard Time or Pacific Daylight Time, whichever is being observed.15 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 H at any time prior to the application deadline. Please see Section H for additional information.


https://energy.webex.com/

http://www.energy.ca.gov/contracts/index.html

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 contact Erica Rodriguez by e-mail at [email protected] or (916) 654-4314 at least five days in advance.

I. QUESTIONS

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

Douglas Harvey, Commission Agreement OfficerCalifornia Energy Commission

1516 Ninth Street, MS-18Sacramento, California 95814

Telephone: (916) 654-4747FAX: (916) 654-4423

E-mail: [email protected]

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


mailto:[email protected]

https://energy.webex.com/energy/systemdiagnosis.php

http://support.webex.com/support/system-requirements.html

https://energy.webex.com/%20energy/globalcallin.php

https://energy.webex.com/%20energy/globalcallin.php

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 parties who requested the solicitation. At its discretion, the Energy Commission may 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.


http://www.energy.ca.gov/%20contracts/index.html

http://www.energy.ca.gov/%20contracts/index.html

II. Eligibility RequirementsA. APPLICANT REQUIREMENTS

1. EligibilityThis solicitation is open to all public and private entities and individuals. Group 1 demonstration projects and pilot test sites for groups 2, 3, and 4 in this solicitation must be located in the service territory of a California natural gas Investor Owned Utility (NG IOU), which includes Pacific Gas and Electric Company, San Diego Gas & Electric Company, and Southern California Gas Company. All projects in this solicitation must benefit natural gas IOU ratepayers.

2. Terms and ConditionsEach 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; or (3) standard terms and conditions. All terms and conditions are located at http://www.energy.ca.gov/research/contractors.html.

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.

3. California Secretary of State RegistrationAll corporations, limited liability companies (LLCs), limited partnerships (LPs) and limited liability partnerships (LLPs) 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. California-Based Entities Pursuant to California Public Resources Code Section 25620.5(h), the California Energy Commission’s Natural Gas Program must give priority to “California-Based Entities” (CBEs) when making awards. California Public Resources Code Section 25620.5(i) defines “CBE” as a corporation or other business entity organized for the transaction of business that either:

Has its headquarters in California AND manufactures in California the product that is the subject of the award; or


http://www.energy.ca.gov/research/contractors.html

Has an office for the transaction of business in California and substantially manufactures the product or substantially performs the research within California that is the subject of the award.

Proposals must meet the following requirements in order to receive CBE preference points:

The proposal must include a CBE as either the recipient or a subcontractor.

The budget must show that the CBE(s) will receive more than 60.00% of the

funds awarded.

5. Disadvantaged or Low-Income CommunitiesWhile it is not required to complete the project within a disadvantaged or low-income community, projects in these communities are encouraged and will be considered for additional points under the scoring criteria for this solicitation (see Part IV).

For Group 1 - 4 applications with all pilot test or demonstration sites located in a disadvantaged or low-income community, and which justify how the project is providing all of the following benefits will be considered for additional points:

a. Proposal identifies how the target market(s) will benefit disadvantaged or low-income communities.

b. Identifies economic impact on low-income and disadvantaged communities including customer bill savings, job creation, partnering and contracting with micro- and small-businesses, and economic development.

c. Describes how the project will increase access to clean energy or sustainability technologies within disadvantaged or low-income communities and how the development will benefit the communities.

d. Applicants have letters of support from technology partners, community based organizations, environmental justice organizations, or other partners that demonstrate equity, feasibility, and commercial viability in low-income or disadvantaged communities.

For more information on disadvantaged and low-income communities and to determine if your project is in these communities use the Disadvantaged and Low-income Community Maps:


B. PROJECT REQUIREMENTS

1. Research Stagea. Technology Demonstration and Deployment (Technology Readiness Level

6-9):Projects in Group 1 must fall within the “technology demonstration and deployment” stage. The technology demonstration and deployment stage involves the installation and operation of pre-commercial or emerging technologies at a scale sufficiently large and in conditions sufficiently reflective of


anticipated actual operating environments to enable appraisal of operational and performance characteristics and the financial risks. Technologies must:

Have a pathway to commercialization in California with potential manufacturing partners

Be past the proof-of-concept stage and be ready to demonstrate under real-world operating conditions. To be eligible a technology must have at least 500 hours of performance testing (e.g., field, lab, bench-scale, pilot-scale), have verified data to justify that the technology is ready for demonstration

Have the targeted industry support showing interest in purchasing the technology if technical and economic performance is verified as demonstrated by support letters from industries (besides the demonstration site)

b. Applied Research and Development (Technology Readiness Level 3-5):Projects in Groups 2, 3, and 4 must fall within the “applied research and development” stage, which includes activities that support pre-commercial technologies and approaches that are designed to solve specific problems in the natural gas systems. Applied research and development activities include:

Development and early, pilot-scale testing necessary to demonstrate the feasibility of pre-commercial technologies

Have support from targeted end users and manufacturers who are interested in using and commercializing the technology if technical and economic performance is verified as demonstrated by support letters

2. Project FocusTo develop, demonstrate, and validate the energy savings from pre-commercial or emerging energy saving technologies and strategies to reduce natural gas use and GHG and other emissions in California’s building and baking sectors. The solicitation consists of four project groups, focused on funding research in the following areas:

Group 1: Demonstrate and deploy pre-commercial or emerging energy efficiency equipment and technologies to increase efficiency and reduce GHG and other emissions in commercial, wholesale and industrial-sized bakeries. Projects must show sufficient cost savings to recover the capital cost within five years.16

Group 2: Improve the energy efficiency, and reduce GHG and other air emissions from residential gravity and forced air wall and floor room heaters through targeted tests of alternative technologies, strategies, or better suited replacements that show sufficient cost savings and other benefits to recover the capital cost within the life of the new technology/strategy17. The recommendations could be used to justify changes to future

16 Masanet, E., Therkelsen, P., and Worrell, E., 2014. Energy Efficiency Opportunities in the U.S. Commercial Baking Industry, Journal of Food Engineering https://www.researchgate.net/publication/260110917 17 Young, J., 2014.Field Demonstration of High-Efficiency Gas Heaters, U.S. Department of Energy, https://www.energy.gov/sites/prod/files/2014/11/f19/gas_heater_demo_report_2.pdf


https://www.energy.gov/sites/prod/files/2014/11/f19/gas_heater_demo_report_2.pdf

https://www.researchgate.net/publication/260110917

energy efficiency codes and standards. Targeted sectors are low-income single and multifamily buildings.

Group 3: Improve the efficiency of hot water distribution systems in existing homes built on slab foundations without insulated hot water pipes through development and test of alternative technologies or strategies that show sufficient cost savings and other benefits to recover the capital cost within 10 years when compared to existing, uninsulated pipes.18

Group 4: Develop and test advanced insulation materials for existing homes that have little or no wall insulation with the goal of showing sufficient cost savings and other benefits to recover the cost within 10 years when compared to existing uninsulated walls.19

Energy generation, such as cogeneration and fuel cells, and use of renewable energy (e.g., biomass and biofuels), storage technologies, and fuel switching (e.g. natural gas to lower energy alternatives) are not eligible for funding under this solicitation. Detailed references for these groups can be found in Part I.A.

a. Group 1: Demonstrate and deploy pre-commercial or emerging energy efficient and GHG emission reducing technologies for the commercial, wholesale and industrial baking sector

The purpose of this group is to demonstrate pre-commercial or emerging energy saving technologies for commercial, wholesale and industrial-sized bakeries with the potential to exceed current best available technologies in terms of reducing natural gas use, GHG emissions and criteria pollutants. In addition to meeting the requirements stated in Part II. B.1.a., the technologies must have a pathway to commercialization in California to ensure the benefits of the project will extend beyond the scope and term of the funded project. This includes ensuring that any funded technology will be able to meet local air quality standards, for oxides of nitrogen (NOx) and other regulated air pollutants, and can be fully deployed after project completion if the technology meets the technical and economic performance targets identified in the project narrative (Attachment 4) and in the goals and objectives in the Statement of Work (Attachment 6).

The goal is to demonstrate and deploy technologies that can improve current equipment efficiency, reduce natural gas use and GHG emissions, and potentially recover the capital cost within five years20.

In an industrial bakery the prover, oven, cooler and associated boiler plant typically account for between 50% and 60% of the total carbon emissions, with the oven using the most energy-typically accounting for between 35% and 45% of the total carbon emissions.21 It is estimated

18 Extrapolation from CEC Benefits Analysis of the 2008 Title 24 Building Energy Standards Change. Underground pipe insulation saves on average 61 therms/year per household. 19 Kosny, J., Shukla, N., and Fallahi, A., 2013. Cost Analysis of Simple Phase Change Material-Enhanced Building Envelopes in Southern U.S. Climates, U.S. Department of Energy. https://www.nrel.gov/docs/fy13osti/55553.pdf 20 Masanet, E., Therkelsen, P., and Worrell, E., 2014. Energy Efficiency Opportunities in the U.S. Commercial Baking Industry, Journal of Food Engineering. https://www.researchgate.net/publication/260110917 21 Industrial Energy Efficiency Accelerator, Guide to the Industrial Bakery Sector. Carbon Trust. https://www.carbontrust.com/media/206476/ctg034-bakery-industrial-energy-efficiency.pdf


https://www.carbontrust.com/media/206476/ctg034-bakery-industrial-energy-efficiency.pdf


https://www.nrel.gov/docs/fy13osti/55553.pdf

that California’s baking industry consumes about 60 million therms of natural gas annually, and emits over 300,000 metric tons of CO2e. Research solutions are needed to address cost effective technologies to reduce GHG emissions and natural gas consumption through integration of retrofit improvements or replacements that improve upon currently best available technologies. For instance, current best available ovens with heat exchangers can reduce energy use by up to 45 percent when compared to conventional equipment.22 Funded research could include improvements to individual components, such as those listed below, as well as large scale, integrated demonstration that includes improvements to burners, controls, insulation and includes heat recovery:

Integrated and advanced energy efficient programming and controls, to optimize baking temperatures with potential for different modes, such as energy saving modes and idle mode while also controlling air emissions, such as NOx. Control measures can reduce energy use by interfacing with the oven or by integration with the bakery system as a whole. A study by Lawrence Berkeley National Laboratory (LBNL) indicates that controls can reduce energy use by up to 20%.23 Research topics must focus on the deployment of advanced controls that can optimize energy efficiency while also controlling NOx emissions as required by local air district rules. For instance, proposals must address how proposed controls will not detrimentally affect current or proposed amendments to local air quality management district rules.24

o The research area seeks to demonstrate advanced controls that improve upon best available technologies and that have the potential of increasing energy efficiency at the plant by at least 20% compared to current operations and addresses the challenges that prevent widespread deployment to other industries, such as cost, equipment compatibility and training requirements.25

o Potential projects can include, but not limited to:

o Centralized controls that will allow bakeries to utilize a multiple zoned approach to baking that promotes product flexibility.

o Real time information controls that provide on screen information regarding equipment issues, recipes, baking temps, baking time, steam usage, convection, pan size, up and down stream production issues, real time production statistics and the ability to compare historic trends.

22 Updated Ovens and Proofers to Improve Energy Efficiency and Cleaning, Snack Food & Whole Sale Bakery, https://www.snackandbakery.com/articles/90669-updated-ovens-and-proofers-to-improve-energy-efficiency-and-cleaning 23 Masanet, E., Therkelsen, P., and Worrell, E., 2012. Energy Efficiency Improvement and Cost Saving Opportunities for the Baking Industry, Lawrence Berkeley National Laboratory, LBNL-6112E, https://www.energystar.gov/sites/default/files/buildings/tools/Baking_Guide.pdf 24 For example, South Coast Air Quality Management District proposed amendments to Rule 1146, 1146.1 and 1146.2 regarding emissions of Oxides of Nitrogen. http://www.aqmd.gov/docs/default-source/rule-book/Proposed-Rules/rule-1146-1146.1-and-1146.2/par1146pr100PHnotice.pdf 25 Masanet, E., Therkelsen, P., and Worrell, E., 2014. Energy Efficiency Opportunities in the U.S. Commercial Baking Industry, Journal of Food Engineering. https://www.researchgate.net/publication/260110917



http://www.aqmd.gov/docs/default-source/rule-book/Proposed-Rules/rule-1146-1146.1-and-1146.2/par1146pr100PHnotice.pdf

http://www.aqmd.gov/docs/default-source/rule-book/Proposed-Rules/rule-1146-1146.1-and-1146.2/par1146pr100PHnotice.pdf

https://www.energystar.gov/sites/default/files/buildings/tools/Baking_Guide.pdf

https://www.snackandbakery.com/articles/90669-updated-ovens-and-proofers-to-improve-energy-efficiency-and-cleaning

https://www.snackandbakery.com/articles/90669-updated-ovens-and-proofers-to-improve-energy-efficiency-and-cleaning

Incorporate heat recovery system to recover waste heat lost during the baking process. It is estimated that only one-third of total energy used by ovens adds value to the final baked product and the remaining two-thirds are associated with flue gas losses, surface losses and steam losses.26 27 The ability to reuse this low grade waste heat for preheating water, combustion air or other purposes can increase the overall efficiency of the baking process. For instance, the proofing process uses approximately 27% of the steam used in the production of breads and rolls in commercial bakeries and the fermentation process uses approximately 49%.28 These large steam requirements provides an opportunity to use waste heat recovery to power the proofing or fermentation processes.

o This research area seeks to deploy best available heat recovery technologies that can use low-temperature waste heat sources, optimize and improve upon the economics of existing waste heat recovery systems through improvements in heat exchanger design or use of low cost novel materials or manufacturing methods. The improved heat recovery technology must have the potential of reducing energy use by at least 20 percent in the plant.29 Potential opportunities include, but not limited to:

o Improved recuperators, economizers or natural gas heat pumps

o Water, air, oven, or proofer preheat

o Heat recovery, capture and use of latent and sensible heat from flue gas and/or liquids

Improvements to oven and boiler insulation and reflective coatings

o According to a report published in the Journal of Food Engineering, new materials, such as ceramic fibers both insulate better and have a lower heat capacity than insulation materials originally installed on older boilers. This report estimates savings of up to 26 percent due to improved insulation.30

o This research area focuses on the use of new, advanced insulation materials, such as advanced, ceramic composites for oven lining or boiler insulation that can potentially increase efficiency of boilers and

26 Mukherjee, S., Asthana, A., Howarth, M., Mcniel, R., 2017. Waste Heat Recovery from Industrial Baking Ovens. 1st International Conference on Sustainable Energy and Resource Use in Food Chains. https://ac.els-cdn.com/S1876610217328333/1-s2.0-S1876610217328333-main.pdf?_tid=3a96d02f-ca3a-401e-8f93-e7b100ded083&acdnat=1542834842_b037f38c0d76affac7e288fb39e88ae727 Schwabe, K., Walsdorf-Maul, M., Schaudienst, F., Vogdt, F. U. 2013. Using Waste Heat for Sustainable Manufacturing Based on the Example of a Conventional Industrial Bakery. http://www.ijmmm.org/papers/058-NM042.pdf 28 Masanet, E., Therkelsen, P., and Worrell, E., 2012. Energy Efficiency Improvement and Cost Saving Opportunities for the Baking Industry, Lawrence Berkeley National Laboratory, LBNL-6112E, https://www.energystar.gov/sites/default/files/buildings/tools/Baking_Guide.pdf 29 Arzbaecher, C., Fouche, E., Paramenter, K., Industrial Waste-Heat Recovery: Benefits and Recent Advancements in Technology and Applications, 2007 ACEEE Summer Study on Energy Efficiency in Industry. https://aceee.org/files/proceedings/2007/data/papers/05_2_048.pdf30 Masanet, E., Therkelsen, P., and Worrell, E., 2014. Energy Efficiency Opportunities in the U.S. Commercial Baking Industry, Journal of Food Engineering. https://www.researchgate.net/publication/260110917



https://www.energystar.gov/sites/default/files/buildings/tools/Baking_Guide.pdf

http://www.ijmmm.org/papers/058-NM042.pdf

ovens. The insulation material must also meet the following requirements:

Thermal stability up to 2000F

Thermal barriers for thermally sensitive applications

Wear resistance

Corrosion protection

Impact and scratch resistance

Adhesion

Low dry-film thickness

Hardness

Chemical resistance

Smooth, consistent finish

b. Group 2: Improve efficiency and reduce GHG and other emissions from residential room and wall heaters

The purpose of this group is to analyze and test the potential to reduce natural gas use in wall and floor furnaces heaters found in many older multifamily and small single-family homes in California. These appliances are a federally regulated product whose efficiencies remain low. These appliances draw combustion air and flue draft from the room, thereby removing heated air. The combustion chamber and heat exchange surfaces are made from inexpensive steel, which corrodes easily, reducing heat transfer. In low-income housing, there is likely a strong correlation between leaky building envelopes and the use of these inefficient furnaces heaters.

There is also concern that this class of heating appliances may pose health and safety risks to residents, though these concerns are not well understood. Lack of information on the population, operational performance, and efficiency of these units make it difficult to determine the extent of the problem. For the same reasons, potential solutions are also not well known.

The goal of this project group is to research, test, monitor, and recommend cost-effective solutions to reduce the natural gas use of wall and floor room heaters. The research may also document safety concerns with proposed mitigation strategies, and possible recommendations for future code changes.

A study conducted by Southern California Gas indicates that approximately 9,300 wall furnaces are replaced annually in Los Angeles County.31

The research in this group must include all of the following areas, at a minimum:

Identify population, efficiency and emissions data of gravity and forced-air wall and room heaters in operation in California

Determine prevalence within California’s disadvantaged and low-income communities using the Disadvantaged and Low-income Community Maps:

31 Valmiki, MM, et al,, High Efficiency Natural Gas Wall Furnace Field Evaluation, prepared for Southern California Gas Company, July 2013. https://www.etcc-ca.com/sites/default/files/reports/e12scg0018_wall_furnace_final_report.pdf


https://www.etcc-ca.com/sites/default/files/reports/e12scg0018_wall_furnace_final_report.pdf


Test and monitor energy performance and health and safety risks in at least two existing residences. Existing residences may be single-family homes or multifamily dwellings.

Monitor energy and indoor air quality performance within at least two existing residences. Indoor air quality pollutants of concern include, but may not be limited to, carbon monoxide, nitrogen oxides, particulates, and soot.32

Establish baseline efficiency, natural gas use, and emissions characteristics by testing in combustion lab using aged furnaces heaters taken from at least two existing residences.

Test and compare energy efficiency of aged furnace heater samples against new units

Identity new materials and/or designs that maintain or reduce new or retrofit equipment and installation cost. Such material and design should increase energy performance and reduce GHG and other air emissions with the potential to recover the capital cost within the life of the new technology. Research may include exploring the viability of a retrofit approach or design of new efficient cost-effective models. Any funded technology must meet all applicable federal, State, and local air quality standards and rules for NOx and other regulated air pollutants.

Conduct actual pilot tests of identified material/design alternative in a minimum of two residential test sites (single-family homes or multifamily dwellings). Testing must be for a minimum period of 12 continuous months (with an emphasis on November to April) to determine base and actual energy performance, GHG emissions, indoor air pollutants and criteria emissions. A minimum of two pilot test sites are required as part of the application. The applicant must verify the feasibility of the pilot test sites to use the technology to be tested. If an alternate test site is required during the grant agreement period, the applicant is responsible for securing the replacement site. Grant funds cannot be used for site assessments or costs associated with securing any replacement sites added later. The Energy Commission reserves the right to issue a stop work order until alternate test sites are located.

Estimate the capital costs and energy savings and other savings/benefits for each identified material/design alternative and the potential to recover the capital cost within the life of each alternative

Recommend energy efficiency improvement strategy, potential for future codes and standards changes, and outreach to building owners on proposed implementation strategy

c. Group 3: Improve hot water distribution system efficiency in existing homes

The purpose of this project group is to improve the efficiency of hot water distribution systems within existing single-family homes, and that could be applicable to other multifamily and commercial building types. This will be done by developing and testing innovative method(s) that can effectively reduce pipe volume, optimizing the flow rate, and

32 Shimer, Dorothy, et al,. Report to the California Legislature, Indoor Air Pollution in California, prepared by the California Air Resources Board, July 2005. https://www.arb.ca.gov/research/indoor/ab1173/rpt0705.pdf


https://www.arb.ca.gov/research/indoor/ab1173/rpt0705.pdf

potentially add R-value to uninsulated pipes. The focus is to develop a financially attractive retrofit solution for hot water plumbing embedded in, or below, concrete slab foundations, with the presumption that a majority of these distribution systems are uninsulated (such as pre 1970’s construction).

Currently, there is no feasible method for retrofitting uninsulated hot water pipes embedded in, or below, a concrete slab foundation. Short of abandoning the existing pipes and re-piping the home above grade, there is no known cost-effective method for reducing a pipe’s volume, optimizing the flow rate, or adding insulation to pipes below grade.

The research in this group will include all of the following areas, at a minimum:

Reduce hot water distribution losses from the water heater to the fixtures for existing single-family homes by developing innovative retrofit solutions that show sufficient cost savings and other benefits to potentially recover the capital cost within 10 years when compared to existing, uninsulated pipes.

o Identify and analyze innovative solutions to reduce heat loss from uninsulated hot water pipes embedded in, or below, concrete slab foundations

o Identify a technology or solution that could be installed in-situ to minimize costs, while increasing pipe flow efficiency

o Identify barriers to adoption of proposed retrofit method(s), including cost and regulatory requirements, and identify how they will be addressed

o Discuss potential strategies for widespread deployment and applicability to residential, multifamily, and commercial markets

Test and demonstrate advanced approaches to decrease water heating related energy use and water consumption in two existing single-family homes

o Identify best method(s) for reducing heat loss in uninsulated residential pipes embedded in, or below, a concrete slab foundation based on laboratory tests

Test and measure pre- and post-retrofit energy and water use and hot water wait times and costs in laboratory prototype assuming hot water pipes are embedded in, or below, a concrete slab foundation

Consider and estimate costs, technical efficacy, building conditions, and plumbing configurations and permit approvals

Estimate costs, savings, fiscal payback (based on energy savings and also based on other benefits), and other benefits for the single-family, multifamily and commercial sectors. Identify those sectors with the most potential (beachhead market) and why.

o Using the best method(s), do field tests in two existing single-family homes with uninsulated hot water pipes embedded in, or below, a concrete slab foundation. A minimum of two pilot test sites are required as part of the application. The applicant must verify the feasibility of the pilot test sites to use the technology to be tested. If an alternate test site is required during the grant agreement period, the applicant is responsible for securing the replacement site. Grant funds cannot be used for site assessments or costs associated with securing any replacement sites added later. The Energy


Commission reserves the right to issue a stop work order until alternate test sites are located.

Measure pre- and post-retrofit energy and water use and hot water wait times and costs

Determine actual energy and cost savings, retrofit cost, fiscal payback and other benefits, like water savings per home and extrapolate to similar homes in California, with assumptions.

Discuss potential strategies for widespread uptake to single-family, multifamily and commercial sector. Identify those deployments that should be prioritized first (beachhead market) based on location, cost savings and payback, and other factors

Identify manufacturing and installation partners that could aid in deployment to reduce capital and installation costs.

d. Group 4: Develop advanced insulation for existing homes using phase change materials

The purpose of this project group is to improve the performance of existing buildings envelopes by developing improved insulation materials using phase change materials (PCM) and demonstrate cost-effective installation of PCM-enhanced insulation materials using innovative new installation techniques. Phase change materials are capable of storing and releasing large amounts of energy, making them a low-volume means of increasing insulation.33

Examples of traditional building envelope applications using phase change materials include incorporating PCMs in concrete, gypsum, and ceramic masonry. Use of PCM in these configurations have not demonstrated significant overall energy savings. Yet previous research has shown that PCM-enhanced loose-fill cellulose insulation, when installed in wall cavities, has the potential for significant energy savings. However, further lab and field-testing of various types and mixtures of PCMs—suitable for multiple California climate zones—is needed to better understand the potential for residential buildings.34

The research in this group will include all of the following areas, at a minimum:

Identify, test, and demonstrate advanced fire-resistive and cost-effective PCM technologies blended with varying types of insulation materials (e.g., cellulose, fiberglass) for retrofit applications. The intent is to identify and lab test new PCM blends with the most cost effective potential for different California climate zones. The PCM-enhanced insulations will then be pilot tested in a minimum of three existing single-family homes of similar vintage with little or no existing wall insulation (such as pre 1978 construction) located in three different California

33 Baffa, J., 2016, Phase Change Material and Controls Study for Low Temp Refrigeration Applications, prepared for Emerging Technologies Program, San Diego Gas and Electric, https://www.etcc-ca.com/reports/phase-change-material-and-controls-study-low-temp-refrigeration-applications

34 Biswas, K., Abhari, R., Low Cost Phase Change Materials as an Energy Storage Medium in Building Envelopes; Experimental and Numerical Analyses, https://www.osti.gov/pages/servlets/purl/1185596; Bland,A., et al, PCMS for Residential Building Applications: A Short Review Focused on Disadvantages and Proposals for Future Development, August 2017. www.mdpi.com/journal/buildings


http://www.mdpi.com/journal/buildings

https://www.osti.gov/pages/servlets/purl/1185596

https://www.etcc-ca.com/reports/phase-change-material-and-controls-study-low-temp-refrigeration-applications

https://www.etcc-ca.com/reports/phase-change-material-and-controls-study-low-temp-refrigeration-applications

climate zones35. A minimum of three pilot test sites are required as part of the application. The applicant must verify the feasibility of the sites to use the technology to be tested. If alternate sites are required during the grant agreement period, the applicant is responsible for securing the replacement site(s). Grant funds cannot be used for site assessment or costs associated with securing any sites added later. The Energy Commission reserves the right to issue a stop work order until alternate test site(s) are located.

o Analyze energy and cost performance of different best in class phase change materials at different concentrations blended with various types of insulation materials (to achieve optimized configuration for multiple California climate zones) with the goal of identifying at least three configurations that show sufficient cost savings and other benefits to recover the cost within 10 years when compared to existing uninsulated walls

o Identify cost-effective and high-performance phase change materials suitable for three different California climate zones through a series of dynamic hot-box lab tests of wall assemblies containing PCM-enhanced insulations

o Perform combustion tests, using ASTM’s fire and flammability standards36, of various PCM-enhanced insulation materials at varying concentrations to identify blends that are most suitable for building envelope applications

o Conduct measurement and verification of pre- and post-PCM use in a laboratory setting, and a minimum of three existing single-family home test sites

o Compare performance, cost, energy and cost savings, and other benefits compared to standard insulation materials

o Identify and determine any issues associated with use of the advanced insulation materials, such as moisture, and potential use in new construction with high performance walls and attics

Develop cost-effective installation techniques for adding PCM-enhanced insulation to existing walls and attic floors

Measure occupant thermal comport pre- and post-PCM addition according to ANSI/ASHRAE Standard 55-201337

Identify barriers, including cost, PCM maintenance after installation, life cycle, regulatory and market acceptance, and potential recommended solutions

Quantify costs, savings, fiscal payback, user satisfaction and other benefits

Discuss potential strategies for widespread uptake to single-family homes, multifamily and commercial sector. Identify those deployments that should be

35 California Energy Commission, California Energy Maps, http://www.energy.ca.gov/maps/renewable/building_climate_zones.html 36 American Society for Testing and Materials (ASTM) International, Fire and Flammability Standards, https://www.astm.org/Standards/fire-and-flammability-standards.html 37 ASHRAE Standard 55-2013, Thermal Environmental Conditions for Human Occupancy, https://www.ashrae.org/resources--publications/bookstore/standard-55-and-user-s-manual


https://www.ashrae.org/resources--publications/bookstore/standard-55-and-user-s-manual

https://www.astm.org/Standards/fire-and-flammability-standards.html

http://www.energy.ca.gov/maps/renewable/building_climate_zones.html

prioritized first (beachhead market) based on location, cost savings and payback, and other factors)

Identify manufacturing/installation partners that could aid in deployment to reduce capital and installation costs

3. Measurement and Verification PlanFor all Groups, include a Measurement and Verification Plan in the Project Narrative (Attachment 4) that describes how actual project benefits will be measured and quantified during the project, such as by pre and post-project natural gas use, costs and savings, and other benefits. Any estimates of energy savings or greenhouse gas impacts must be calculated using the References for Calculating Energy End-Use and GHG Emissions (Attachment 13).

For Group 1, independent, third-party measurement and verification is required to address the natural gas savings and economic benefits from each project. The Measurement and Verification Plan for Group 1 projects must cover a period of at least three months of pre-retrofit for baseline measurement and 6-12 months of post project installation. See also Part I.A.

For Groups 2 through 4: Pilot-scale testing, of a minimum of 12 months, is required to test and demonstrate the feasibility of pre-commercial technologies or strategies during the grant agreement period. The test period must include sufficient time to estimate the impact on natural gas consumption of the proposed technology or strategy, such as during the winter months, if seasonal. Pre-retrofit baseline measurement period is required as follows:

Group 2: Minimum one winter (November 1 to April 30) Group 3: Minimum six months Group 4: Minimum 12 months


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

o Executive Summary (Attachment 2): two pageso Fact Sheet (Attachment 3): two pageso Project Narrative Form (Attachment 4): twenty pages excluding

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

for each reference, two pages for each project descriptiono 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)O California-Based Entity Form (Attachment 12)

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)


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) and prior to the date and time specified in this solicitation. 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 Labeling

All hard copy applications must be labeled "Grant Funding Opportunity GFO-18-503," and include the title of the application.


https://gss.energy.ca.gov/

Include the following label information on the mailing envelope:

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

GFO-18-503Contracts, 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-18-503” 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)12 California-Based Entity (CBE) Form

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.

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.

a. 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 personnel38 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 by the anticipated agreement end date specified in the “Key Activities Schedule” in Part I.

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.

38 “Key personnel” are individuals that are critical to the project due to their experience, knowledge, and/or capabilities.


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 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 Energy Commission’s natural gas 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.


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.


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 Group 1: Minimum 20 percent match funding is required. Applicants must

submit a match funding commitment letter signed by each 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.

If the project involves demonstration and deployment activities, the applicant must include a site commitment letter signed by an authorized representative of the proposed 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. Group 1 applicants must identify at a minimum one demonstration site. The applicant must verify the feasibility of the demonstration site to use the technology to be demonstrated. If alternate demonstration site(s) are required during the grant agreement period, the applicant is responsible for securing the replacement site(s). Grant funds cannot be used for site assessments or costs associated with securing any replacement sites added later. The Energy Commission reserves the right to issue a stop work order until alternate site(s) are located.

Group Commitment Letter from Demonstration and Deployment Site Needed

1 One commercial, wholesale, or industrial-sized bakery

Project partners that are making contributions other than match funding or a demonstration 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.

Groups 2, 3 and 4: Match funding is not required. However, applicants that include match funding will receive additional points during the scoring phase (See Part IV). If match funding will be provided, applicants must submit a match funding commitment letter signed by each 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.

If the project involves pilot testing activities, the applicant must include site commitment letters for the pilot test sites, signed by an authorized representative of the proposed pilot test sites as follows:


Group Commitment Letters from Pilot Test Sites Needed2 Two existing residential test sites*3 Two existing single-family homes4 Three existing single-family homes in different Climate Zones

*Single-family home or multifamily unit/dwelling

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 pilot test 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.

The applicant must verify the feasibility of the pilot test sites to use the technology to be demonstrated. If alternate test site(s) are required during the grant agreement period, the applicant is responsible for securing the replacement site(s). Grant funds cannot be used for site assessments or costs associated with securing any replacement sites added later. The Energy Commission reserves the right to issue a stop work order until alternate site(s) are located.

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 pilot test site.

12. California-Based Entities Form (Attachment 12)Identify any California-based entities as instructed in the form. California-based entities are entitled to a scoring preference as described in Part II of this solicitation.


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.

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 52.50 points for criteria 1−4 to be eligible for funding.

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 within each group that receive a minimum score of 70.00 points for all criteria will be ranked according to their score within that group.

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 theNOPA 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; and


o 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 and 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 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.

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.

4. Solicitation Errors

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 solicitation. 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.


http://www.energy.ca.gov/contracts

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 applicant has submitted more than one application for the same project group, each application is for a distinct project (i.e., no overlap with respect to the tasks described in the Scope of Work, Attachment 6).

If the projects are not distinct and the applications were submitted at the same time, only the first application screened by the Energy Commission will be eligible for funding. If the applications were submitted separately, only the first application received by the Energy Commission will be eligible for funding.

Pass Fail

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

Pass Fail

6. (Required for Group 1 technology demonstration and deployment projects). The Application Form and budget specify that the applicant will provide at least 20 percent or greater of the requested Energy Commission’s natural gas funds in match funds.

Pass Fail

7. (Required for Group 1 technology demonstration and deployment projects). The Application includes documentation that the technology has had at least 500 hours of performance testing (e.g., field, lab, bench-scale, pilot-scale).

Pass Fail

8. For all Groups involving demonstration/deployment or pilot testing activities:o The Application Form identifies one or more

demonstration/deployment or pilot test site location (see Part III.D.11 for requirement).

o All demonstration/deployment and pilot test sites are located in aCalifornia NG IOU service territory (Pacific Gas and Electric Company, San Diego Gas & Electric Company, or Southern California Gas Company).

Pass Fail


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

Pass/Fail

9. The application does not contain any confidential information or identify any portion of the application as confidential.

Pass Fail

10. The applicant has not 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.

Pass Fail

11. For projects that do not require match funding: The proposal includes one or more support letters. When a site commitment letter is required (Section III.D.11), the proposal includes this letter. All letters are prepared as specified in Attachment 11.

If the proposal includes commitment letters that are not required (including match funding letters) and do not meet the requirements of Attachment 11, the letters will not be considered in the scoring phase.

For projects that require match funding: The proposal includes one or more support letters and a match funding commitment letter. When a site commitment letter is required (Section III.D.11), the proposal includes this letter. All letters are prepared, as specified in Attachment 11.

If the proposal includes commitment letters that are not required and do not meet the requirements of Attachment 11, the letters will not be considered in the scoring phase.

Pass Fail


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 52.50 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.

75%Between Adequate and Good

Response better than adequately addresses the requirements being scored.

Any omission(s), flaw(s), or defect(s) 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.

85% Between Good and Excellent

Response fully addresses the requirements being scored with a better than good degree of confidence in the applicant’s response or proposed solution.

No identified omission(s), flaw(s), or defect(s). 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.

95%Between Excellent and Exceptional

Response fully addresses the requirements being scored with a better than excellent degree of confidence in the applicant’s response or proposed solution.

Applicant offers one or more enhancing features, methods or approaches exceeding 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.


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 Part I.A and Part II.B. Failure to comply with the solicitation could be grounds for application rejection as stated in Part IV.C. Any estimates of energy savings or GHG impacts should be calculated as specified in the References for Calculating Energy End-Use and GHG Emissions (Attachment 13), to the extent that the references apply to the proposed project.

Scoring CriteriaMaximum

Points

1. Technical Merita. The proposed project provides a clear and concise description of the

technological, scientific knowledge advancement, and/or innovation that will overcome barriers to achieving the State’s statutory energy goals.

b. Describes the competitive advantages of the proposed technology or technology package has over current benchmark or best-in-class solutions (e.g., efficiency, emissions, durability, cost).

c. Describes how these competitive advantages lead to increased ratepayer benefits if adopted in the market.

d. Describes what additional performance data is still needed about the technology or technology package to facilitate increased adoption.

e. Describes what is the expected financial performance (payback period) of the technology or technology package.

f. Explains to what extent does the expected financial performance fall in line with acceptable returns for the market segment(s) being targeted as part of the project.

g. Provides the proposed technical specifications and describe how the project will meet or exceed the technical specifications by the end of the project.

h. Describes the research stage and technology readiness level (TRL) the proposed technology has achieved and the expected TRL by the end of the project.

Technology Demonstration and Deployment (Group 1 Applicants Only)

i. Describes at what scale the technology has been successfully demonstrated and provides documentation that the technology is past the “proof-of-concept” stage and ready to demonstrate under real-world operating conditions. Provides documentation that the technology has had at least 500 hours of performance testing (e.g., field, lab, bench-scale, pilot-scale) and provides verified data to justify that the technology is ready for demonstration (documentation can include a utility report, lab study, or other report showing the period of time and resulting data). If demonstrated outside of California, specifies previous industry

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Pointsdemonstrations and describes what makes demonstration in California important and unique.

j. Describes how the proposed demonstration will lead to increased adoption of the technology in California.

Applied Research and Development (Groups 2, 3, and 4 Only)

k. Explains what new knowledge is expected to be gained from this project and why this new knowledge is useful. Describes how this new knowledge could be applied.

l. Describes what new features and capabilities are needed to improve the value proposition of the targeted technology.

m. Describes what research pathways are being pursued for the breakthrough technology. Explains which of these pathways California researchers and companies are currently researching.

n. Explains the specific scientific and technical challenges that need to be overcome for each of these research pathways.

o. Describes the key technical targets and goals that provide the best indicators of the technology’s potential success.

p. Describes the specific barriers or knowledge/data gaps that need to be addressed and risks if the gaps are not filled.

2. Technical Approacha. Proposal describes the technique, approach, and methods to be used in

performing the work described in the Scope of Work.

b. The Scope of Work identifies goals, objectives, and deliverables, details the work to be performed, and aligns with the information presented in Project Narrative.

c. Proposal identifies the reliability (assurance and degree to which) that the project and site recommendations as described will be carried out if funds are awarded.

d. Identifies and discusses factors critical for success, in addition to risks, barriers, and limitations (e.g. loss of demonstration site, key subcontractor). Provides a plan to address them.

e. Describes the Technology and Knowledge Transfer Plan including how key stakeholders will be engaged.

f. 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 Part I.F

g. 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.

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Pointsh. Provides information documenting progress towards achieving

compliance with the California Environmental Quality Act (CEQA) by addressing the areas in Part I.D, and Part III.D.4, and Part III.D.8

3. Impacts and Benefits for California NG IOU Ratepayersa. Explains how the proposed project will benefit California Natural Gas

Investor-Owned Utility (IOU) ratepayers and provides clear, plausible, and justifiable (quantitative preferred) potential benefits. Estimates the energy benefits including:

annual thermal savings (therms), energy cost reductionsIn addition, estimates the non-energy benefits including:

greenhouse gas emission reductions, air emission reductions (e.g. NOx and other regulated pollutants) and any other quantifiable benefits

b. States the timeframe, assumptions with sources, and calculations for the estimated benefits, and explains their reasonableness. Include baseline or “business as usual” over timeframe.

c. Explains the path-to-market strategy including near-term (i.e. initial target markets), mid-term, and long-term markets for the technology, size and penetration or deployment rates, and underlying assumptions.

d. Identifies the expected financial performance (e.g. payback period, ROI) of the demonstration at scale. Describes to what extent the expected financial performance falls in line with acceptable returns for the specific market segment(s) being targeted as part of the project.

e. Identifies the specific programs which the technology intends to leverage (e.g. IOU rebates) and extent to which technology meets program requirements.

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4. Team Qualifications, Capabilities, and Resourcesa. Identifies credentials of prime and any subcontractor core personnel,

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

b. Demonstrates that the project team has appropriate qualifications, experience, financial stability and capability to complete the project.

c. Explains the team structure and how various tasks will be managed and coordinated.

d. Describes the facilities, infrastructure, and resources available that directly support the project.

e. Describes the team’s history of successfully completing projects in the past 10 years including subsequent deployments and commercialization.

f. Evaluations of ongoing or previous projects will be used in scoring for this

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Pointscriterion.

Total Possible Points for criteria 1−4(Minimum Passing Score for criteria 1−4 is 52.50) 75

5. Budget and Cost-Effectivenessa. Budget forms are complete for the applicant and all subcontractors, 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 direct costs (e.g., labor, fringe benefits, equipment, materials & misc. travel, and subcontractors).

d. Justifies the reasonableness of indirect costs for the prime and subcontractors (e.g., overhead, facility charges, rent, utilities), burdens, subcontractor profit, and other like costs, and when indirect costs exceed 50 percent on the Indirect Costs budget workbook.

e. The costs and allocation of labor hours proposed for personnel and subcontractors are reasonable to accomplish the activities in the Scope of Work (Attachment 6).

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6. Natural Gas Research Program Funds Spent in CaliforniaProjects that maximize the spending of Natural Gas Research funds in California relative to the California Energy Commission funds requested 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 in the budget attachments (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 (see Part I.B.)

Airline ticket purchases for out-of-state travel and payments make to out-of-state workers are not considered funds “spent in California.” However, funds spend 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 California Energy Commission funds spent in CA(derived from budget Attachment 7)

Percentage of Possible Points

>60% 20%>65% 30%>70% 40%>75% 50%>80% 60%

5



Points>85% 70%>90% 80%>95% 90%>98% 100%

7. Ratio of Direct Labor to Indirect CostsThe score for this criterion is derived from the Category Budget for the prime and major subcontractor(s) in the budget forms, and compares the total Energy Commission funds for total direct labor to the sum of total direct labor, fringe, indirect, and profit. This is calculated by the following formula:

Total Direct Labor

Total Direct Labor + Total Fringe + Total Indirect + Total Profit

This ratio will then be multiplied by the maximum possible points for this criterion and rounded to two decimal places.

NOTE: For the purposes of this criteria, the Energy 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.

5

Total Possible Points(Minimum Passing Score is 70) 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 Funds Above the Minimum Each match funding contributor 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 above the minimum relative to the Natural Gas R&D Program funds requested. This ratio will be multiplied by 5 to yield the points, and rounded to the nearest whole number.

For example: If requested Natural Gas R&D Program funds are $1,000,000, with a minimum match requirement of 20% or $200,000, and the applicant pledged $700,000 in match funding, the match funding ratio is 0.50. (5 x 0.50 = 2.5 points, rounded to two decimal places).

o 5 points will be awarded based on the level of commitment 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

10



Points

in the match funding commitment letter for the amount committed (see Attachment 11). The proposal Scoring Scale in Part 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.

9. Disadvantaged or Low-Income CommunitiesFor applications proposing projects located in and benefiting low-income and/or disadvantaged communities within NG IOU service territories. Applications must meet both minimum passing scores (Scoring Criteria 1-4, and 1-7) to be eligible for the additional points.

The project benefits the disadvantaged or low-income community and responds to all of the following in order to receive additional points:

a. Proposal identifies how the target market(s) will benefit disadvantaged or low-income communities.

b. Identify economic impact on low-income and disadvantaged communities including customer bill savings, job creation, partnering and contracting with micro- and small-businesses, and economic development.

c. Describes how the project will increase access to clean energy or sustainability technologies within disadvantaged or low-income communities and how the development will benefit the communities.

d. Applicants have letters of support from technology partners, community based organizations, environmental justice organizations, or other partners that demonstrate equity, feasibility, and commercial viability in low-income and disadvantaged communities.

5

10. California Based Entities (CBE) Preference PointsA CBE is a corporation or other business form organized for the transaction of business that either:

Has its headquarters or an office in California AND manufactures in California the product that is the subject of the award; OR

Has an office for the transaction of business in California AND substantially manufactures the product or substantially performs the research within California that is the subject of the award.

Proposals must meet the following requirements in order to receive CBE preference points:

The proposal must include a CBE as either the recipient or a subcontractor.

The budget must show that the CBE(s) will receive more than 60.00% of

5



Pointsthe Natural Gas Research Program funds awarded.

Projects that meet these requirements will receive preference points as indicated below:

Percentage of Natural Gas Research Program Funds Allocated to CBEs relative to California Energy Commission Funds Requested(derived from budget attachment “Category Budget”)

Percentage of Possible Points

> 60% 20%

> 65% 30%

> 70% 40%

> 75% 50%

> 80% 60%

> 85% 70%

> 90% 80%

> 95% 90%

> 98% 100%
