GRANT FUNDING OPPORTUNITY

Development, Demonstration and Deployment of Environmentally and Economically Sustainable

Biomass-to-Energy Systems for the Forest and Food Waste Sectors

(EPIC Bioenergy Solicitation)

GFO-15-325http://www.energy.ca.gov/contracts/index.html

State of CaliforniaCalifornia Energy Commission

June 2016

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

A. PURPOSE OF SOLICITATION....................................................................................................................................1B. KEY WORDS/TERMS.............................................................................................................................................4C. APPLICANTS’ ADMONISHMENT...............................................................................................................................6D. ADDITIONAL REQUIREMENTS..................................................................................................................................7E. BACKGROUND.....................................................................................................................................................8F. FUNDING.........................................................................................................................................................14G. KEY ACTIVITIES SCHEDULE...................................................................................................................................16H. PRE-APPLICATION WORKSHOP.............................................................................................................................16I. QUESTIONS......................................................................................................................................................18

II. ELIGIBILITY REQUIREMENTS...................................................................................................................... 19

A. APPLICANT REQUIREMENTS.................................................................................................................................19B. PROJECT REQUIREMENTS....................................................................................................................................19

III. APPLICATION ORGANIZATION AND SUBMISSION INSTRUCTIONS..............................................................31

A. ABSTRACT AND APPLICATION FORMAT, PAGE LIMITS, AND NUMBER OF COPIES............................................................31B. APPLICATION DELIVERY.......................................................................................................................................35C. APPLICATION ORGANIZATION AND CONTENT...........................................................................................................35

IV. EVALUATION AND AWARD PROCESS......................................................................................................... 45

A. APPLICATION EVALUATION..................................................................................................................................45B. RANKING, NOTICE OF PROPOSED AWARD, AND AGREEMENT DEVELOPMENT................................................................47C. GROUNDS TO REJECT AN APPLICATION OR CANCEL AN AWARD..................................................................................48D. MISCELLANEOUS................................................................................................................................................49E. PHASE 1: APPLICATION AND TECHNICAL ABSTRACT SCREENING..................................................................................51F. PHASE 2: APPLICATION SCREENING.......................................................................................................................53G. PHASE TWO: APPLICATION SCORING....................................................................................................................54

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ATTACHMENTS

Attachment Number Title – Note all Attachments are required for Phase 2, while just Attachments 1, 4, 8 (optional) and 11 (as applicable) are required for Phase 1

1 (Phase 1 and Phase 2) Application Form (requires signature)

2 (Phase 2 ONLY) Executive Summary Form

3 (Phase 2 ONLY) Fact Sheet Template

4 (Project Abstract - Phase 1)

(Project Narrative Form - Phase 2)

Project Abstract and

Project Narrative Form

5 (Phase 2 ONLY) Project Team Form

6 (Phase 2 ONLY) Scope of Work Template

6a (Phase 2 ONLY) Scope of Work Template: Project Schedule(Excel spreadsheet)

7 (Phase 2 ONLY) Budget Forms (Excel spreadsheet)

8 (Phase  1 - Optional)

(Phase 2 – Required)

CEQA Compliance Form

9 (Phase 2 ONLY) Reference and Work Product Form

10 (Phase 2 ONLY) Contact List Template

11 (Phase 1, As Required)

(Phase 2, As Required)

Intent, Commitment and Support Letter Form (letters require signature)

12 (Phase 2 ONLY)

Or 12a and 12b*Instructions for Cost Benefit Calculations

Or Instructions for Benefits Calculations – PUBLIC and Instructions for Cost Calculations – CONFIDENTIAL Groups 2 and 3 Only

- CPUC LCOE worksheets or other

13 (Phase 2 ONLY) Performance Data – Groups 2 and 3 Only

* Submitting information confidentially is optional and applicants may use the original Attachment 12 if they prefer not to submit confidential information. For applicants who want to protect their cost information, Attachment 12 information may be submitted using Attachments 12a Instructions for Benefits Calculations - PUBLIC and 12b   Instructions for Cost   Calculations – CONFIDENTIAL instead of the original Attachment 12. Confidential information submitted under Attachment 12b will remain confidential for 3 years.

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I. Introduction

A. PURPOSE OF SOLICITATION The California Energy Commission (Energy Commission) is soliciting proposals under this grant solicitation to fund applied research and development (AR&D) and technology demonstration and deployment (TD&D) activities to advance bioenergy electricity generation. Consistent with the 2015-2017 EPIC Investment Plan1 and in coordination with the California Public Utilities Commission, the solicitation addresses three bioenergy funding initiatives. This solicitation is also responsive to the Governor’s 10-30-2015 Proclamation of a State of Emergency2 to protect communities against unprecedented tree die-off. As a result of the proclamation, the EPIC program is accelerating the schedule for release of this EPIC Bioenergy solicitation.

This solicitation includes one AR&D project group and two TD&D project groups. Projects must fall within one of the following project groups:

Group 1: AR&D: Efficient, Sustainable and Lower-Cost Bioenergy: Innovations to Improve Woody Biomass-to-Electricity Systems  (Funding Initiative S3.1)

Group 1 projects should advance research and development for woody biomass technologies aimed at biomass from sustainable forest management activities, particularly those responding to California’s bark beetle infestation. As a result of consecutive years of drought, California forests in the Sierras have been plagued by a devastating bark beetle infestation, causing unprecedented tree mortality. As noted in the Governor’s Proclamation of a State of Emergency:

“State agencies, utilities, and local governments to the extent required by their existing responsibility to protect the public health and safety, shall undertake efforts to remove dead or dying trees in high hazard zones that threaten power lines, roads and other evacuation corridors, critical community infrastructure, and other existing structures…”

Fire is a natural and beneficial part of many forest ecosystems. However, forests with millions of dead trees have an increased likelihood of catastrophic wildfires. Catastrophic wildfires burn at much higher temperatures than prescribed fires. Because of these extreme temperatures, catastrophic wildfires do not offer the benefits of natural or prescribed burns that can promote the growth of trees, wildflowers, and other plants. Catastrophic wildfires can destroy entire forests and sterilize soils, even alter forestland to shrubland.

Further, catastrophic wildfires emit black carbon, a component of fine particulate matter, which has been identified as a leading environmental risk factor for premature death.

1 2015-17 EPIC Triennial Investment Plan, http://www.energy.ca.gov/2014publications/CEC-500-2014-038/, as modified and approved by CPUC Decision 15-04-020, http://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M151/K183/151183650.PDF 2 https://www.gov.ca.gov/docs/10.30.15_Tree_Mortality_State_of_Emergency.pdf

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Black carbon from wildfires has been identified by the California Air Resources Board (CARB) as a Short-Lived Climate Pollutant (SLCP)3 and, by far, the largest source of black carbon emissions in California. Recent studies have also shown that black carbon emissions play a far greater role in global warming than previously believed.4

Sustainable forest management activities can help reduce the chances of catastrophic wildfires and associated black carbon emissions while providing energy, wood products, and other uses. Bioenergy from woody biomass could provide an important source of renewable baseload energy, and for some technologies, even provide a source of flexible generation. However, technological breakthroughs are needed to make bioenergy systems environmentally sustainable and economically viable.

Group 2: TD&D: Demonstrate and Evaluate Environmentally and Economically Sustainable Woody Biomass-to-Electricity Systems (Funding Initiative S13.1)

The intent of this project group is to support research that prioritizes woody biomass projects in accordance with the Governor’s 10-30-2015 Proclamation of a State of Emergency to protect communities against unprecedented tree die-off, and states:

“The California Energy Commission shall prioritize grant funding from the Electric Program Investment Charge for woody biomass-to-energy technology development and deployment, consistent with direction from the California Public Utilities Commission.”5

Four consecutive years of severe drought in California, a dramatic rise in bark beetle infestation and warmer temperatures are leading to historic levels of tree die-off. The U.S. Forest Service announced in June 2016 that it has identified an additional 26 million trees dead in California since October 2015. These trees are located in six counties across 760,000 acres in the southern Sierra Nevada region of the state, and are in addition to the 40 million trees that died statewide from 2010 to October 2015, bringing the total to at least 66 million dead trees. While dead trees provide valuable wildlife habitat, an overabundance at this unprecedented magnitude significantly increases the potential risk of catastrophic wildfires.6

Bioenergy from forest biomass could help alleviate the threat of fire while providing an important source of renewable baseload energy and, for some technologies, flexible generation.

3 http://www.usda.gov/wps/portal/usda/usdahome?contentid=2016/06/0150.xml&contentidonly=true NewsRelease, June 22, 2016.4 Ibid. (p. ES-6).5 https://www.gov.ca.gov/docs/10.30.15_Tree_Mortality_State_of_Emergency.pdf order number 11. 6 http://cdfdata.fire.ca.gov/incidents/incidents_stats?year=2015

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Group 3: TD&D: Demonstrate and Evaluate Environmentally and Economically Sustainable Food Waste Biomass-to-Electricity Systems (Funding Initiative S13.2)Group 3 projects should advance research and development of sustainable food waste biomass-to-electricity systems while also bolstering support for meeting Southern California’s electricity needs and achieving State renewable electricity and food-waste diversion goals.

On April 5, 2016 State and local energy agencies released a plan to help preserve reliability of electrical service during the summer in the greater Los Angeles area following the major natural gas leak at the Aliso Canyon underground natural gas storage facility. Currently, Aliso Canyon is prohibited from injecting and storing more gas until a comprehensive safety review is completed and the facility’s wells are deemed safe or removed from service. The plan concludes that:

“Aliso Canyon plays an essential role in maintaining both natural gas and electric reliability in the greater Los Angeles area. As a result, the facility’s limited current operations create a distinct possibility of electricity service interruptions in the coming summer months.”7

Further, Senate Bill 350 (SB 350, De Leon) requires electric companies to procure 50 percent of their retail sales from certified renewable facilities by 2030. Expanding California’s waste to energy infrastructure will help achieve these renewable electricity goals. Further, bioenergy provides a renewable baseload resource that can assist with the integration of the intermittent nature of wind and solar and has the potential to be load following.

And finally, a 2014 report by CalRecycle identified food-waste as the largest component of solid waste disposed at landfills - approximately 18 percent, equivalent to 5.5 million tons annually statewide.8 Diverting organic matter from landfills would help decrease harmful landfill gas emissions. The main component of landfill gas, methane, is a Short Lived Climate Pollutant (SLCP). According to CARB’s Draft Short-Lived Climate Pollutant Reduction Strategy, SLCPs are powerful climate forcers and dangerous air pollutants and “cutting emissions of SLCP can immediately slow global warming and reduce the impacts of climate change.” Landfill gas is responsible for approximately 20 percent of statewide methane emissions.9

Each Project Group will be evaluated and scored separately.

The screening and scoring criterion for all research groups are described in Section IV. Evaluation and Award Process. Applicants are strongly encouraged to review the screening and scoring criteria and complete their application in a way that demonstrates how the criteria are met.

See Section II of this solicitation for project eligibility requirements. Applications will be evaluated as follows: Phase 1 abstract screening; and Phase 2 proposal screening and scoring. Applicants may submit multiple applications, though each application may address

7 http://www.energy.ca.gov/releases/2016_releases/2016-04-05_Aliso_Canyon_Action_Plan_NR.pdf 8 http://www.calrecycle.ca.gov/Publications/Documents/1546%5C20151546.pdf 9 http://www.arb.ca.gov/cc/shortlived/2015draft.pdf See page 39

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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 DefinitionApplicant The respondent to this solicitation

Application An applicant’s formal written response to this solicitation

AR&D and

AR&D pilot project

Applied Research and Development - There are two typical types of AR&D projects: 1) applied research projects and 2) development projects. A project may contain aspects of both applied research and development work. AR&D projects that include a development component are referred to as AR&D pilot projects. AR&D pilot projects typically advance laboratory or bench scale work, for example, an AR&D pilot project would build upon lab or bench scale data in terms of testing a larger scale system or piloting it under more real world conditions.

CBA California Balancing Authority

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

CARB California Air Resource Board

CalFire California Department of Forestry and Fire Protection

CalRecycle California's Department of Resources Recycling and Recovery

CEQA California Environmental Quality Act

CPUC California Public Utility Commission

Days Days refers to calendar days

DOE Department of Energy

Disadvantaged Community

These are communities defined as areas representing census tracts scoring in the top 25 percent in CalEnviroScreen 2.0. (http://oehha.ca.gov/ej/ces2.html) (http://oehha.maps.arcgis.com/apps/Viewer/index.html?appid=dae2fb1e42674c12a04a2b302a080598)

DER Distributed Energy Resources

DG Distributed Generation

DRP Distribution Resources Plan

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

Energy Commission California Energy Commission

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Word/Term DefinitionFOG Fats Oils and Grease

GFO Grant Funding Opportunity

GTW Grease Trap Waste

HHZ High Hazard Zones - The link to the HHZ map is:

http://egis.fire.ca.gov/TreeMortalityViewer/Applicants must select boxes for Tier One and Tier Two High Hazard Zones in the Layer Visibility Legend to view the HHZs.

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

LCOE Levelized Cost of Electricity

Net Energy Metering (NEM)

CPUC program for customers who install small solar, wind, biogas, and fuel cell generation facilities (1 MW or less) to serve all or a portion of onsite electricity needs.

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

PG&E Pacific Gas & Electric Company

PPA Power Purchase Agreement

Pre-commercial technology

May mean that the technology is not widely used in California

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

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

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

Recipient The recipient of an award under this solicitation

RPS Renewable Portfolio Standard

SGIP Self-Generation Incentive Program

Senate Bill 1122 SB 1122 Bioenergy Feed-in-Tariff or BioMat – a bioenergy feed-in-tariff program administered by the CPUC

SB 1122 BioMat Category 3 “Bioenergy Using Byproducts of Sustainable Forest Management”

Currently the CPUC definition for SB 1122 BioMat Category 3 “Bioenergy Using Byproducts of Sustainable Forest Management” includes byproducts from four types of activities: fire threat reduction; fire safe clearance; infrastructure clearance projects; and other sustainable forest management activities (CPUC D 14-21-081 http://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M143/K960/143960

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Word/Term Definition061.pdf See discussion starting on page 21 Section 2.2.3 Bioenergy Using Byproducts of Sustainable Forest Management and Appendix B SB 1122 Forest Biomass – Forest Biomass Sustainability Byproduct Eligibility Form: Instructions and Worksheet. There may be updates to the CPUC definition of “byproducts from sustainable forest management” activities which may call out the inclusion of “fuel from high hazard zones” or other changes. http://docs.cpuc.ca.gov/PublishedDocs/Efile/G000/M158/K378/158378160.PDF

This GFO will use the CPUC BioMAT definition in place at the time of the solicitation release date.

SLCP short-lived climate pollutant

SDG&E San Diego Gas and Electric Company

SCE Southern California Edison Company

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

State State of California

TD&D Technology demonstration and deployment

TRL Technology Readiness Level (as defined by the Department of Energy)

Tree Mortality Task Force

The Tree Mortality Task Force is comprised of state and federal agencies, local governments, utilities, and various stakeholders that will coordinate emergency protective actions, and monitor ongoing conditions to address the vast tree mortality resulting from four years of unprecedented drought and the resulting bark beetle infestations across large regions of the State. http://www.fire.ca.gov/treetaskforce/

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, 2018.  This means that the

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Energy Commission must approve proposed awards at a business meeting prior to June 30, 2018 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 which may arise related to CEQA review include but are not limited to:

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

Example 2: If the proposed work is part of a larger project for which a detailed environmental analysis has been or will be prepared by another agency, 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 another lead agency’s review, may take longer than the time available to encumber the funds.

Example 4: If the proposed project clearly falls under a statutory or categorical exemption, or is work for which another agency has already adopted a CEQA finding, the project will likely have greater success in attaining rapid completion of CEQA requirements.

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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. Electric Program Investment Charge (EPIC) Program This solicitation will award projects funded by the EPIC, an electricity ratepayer surcharge established by the California Public Utilities Commission (CPUC) in December 2011.10 The purpose of the EPIC program is to benefit the ratepayers of three investor-owned utilities (IOUs), including Pacific Gas and Electric Co., San Diego Gas and Electric Co., and Southern California Edison Co. The EPIC funds clean energy technology projects that promote greater electricity reliability, lower costs, and increased safety.11 In addition to providing IOU ratepayer benefits, funded projects must lead to technological advancement and breakthroughs to overcome the barriers that prevent the achievement of the state’s statutory energy goals.12 The EPIC program is administered by the California Energy Commission and the IOUs.

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

Applied research and development;

Technology demonstration and deployment; and

Market facilitation

In addition, projects must fall within one of the general focus areas (“strategic objectives”) identified in the Energy Commission’s EPIC Investment Plans13 14 and within one or more specific focus areas (“funding initiatives”) identified in the plan. This solicitation targets the following program area, strategic objective, and funding initiatives:

10 See CPUC “Phase 1” Decision 11-12-035, December 15, 2011, http://docs.cpuc.ca.gov/PublishedDocs/WORD_PDF/FINAL_DECISION/156050.PDF.11 See CPUC “Phase 2” Decision 12-05-037, May 24, 2012, http://docs.cpuc.ca.gov/PublishedDocs/WORD_PDF/FINAL_DECISION/167664.PDF.12 California Public Resources Code, Section 25711.5(a), http://www.leginfo.ca.gov/cgi-bin/displaycode?section=prc&group=25001-26000&file=25710-25712.13 2012-14 EPIC Triennial Investment Plan, http://www.energy.ca.gov/research/epic/documents/final_documents_submitted_to_CPUC/2012-11-01_EPIC_Application_to_CPUC.pdf (Attachment 1), as modified and approved by CPUC Decision 13-11-025, http://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M081/K773/81773445.PDF. 14 2015-17 EPIC Triennial Investment Plan, http://www.energy.ca.gov/2014publications/CEC-500-2014-038/CEC-500-2014-038-CMF.pdf, as modified and approved by CPUC Decision 15-04-020, http://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M151/K183/151183650.PDF.

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2015-2017 EPIC Triennial Investment Plan: Program Area: Applied Research and Development

Strategic Objective S3: Develop Innovative Solutions to increase the Market Penetration of Distributed Renewable and Advanced Generation

o Funding Initiative S3.1 - AR&D: Efficient, Sustainable and Lower-Cost Bioenergy: Innovations to Improve Woody Biomass-to-Electricity Systems in California 

And

Program Area: Technology Demonstration and Deployment

Strategic Objective S13: Demonstrate and Evaluate Biomass-to-Energy Conversion Systems, Enabling Tools, and Deployment Strategies

o Funding Initiative S13.1- TD&D: Demonstrate and Evaluate Environmentally and Economically Sustainable Woody Biomass-to-Electricity Systems

o Funding Initiative S13.2 - TD&D: Demonstrate and Evaluate Environmentally and Economically Sustainable Food-Waste Biomass-to-Electricity Systems

3 Applicable Laws, Policies, and Background Documents

This solicitation addresses the energy goals described in the following laws, policies, and background documents.

Laws/Regulations

Senate Bill (SB) 350 (Clean Energy and Pollution Reduction Act of 2015 (Statutes of 2015))SB 350 requires the following: 1) the amount of electricity generated and sold to retail customers per year from eligible renewable energy resources be increased to 50 percent by December 31, 2030; 2) the California 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.

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

Renewables Portfolio Standard (Senate Bill (SB)) X1-2, (Simitian, Ch.1, Statutes of 2011); SB 107 (Simitian, Ch. 464, Statutes of 2006); SB 1078 (Sher, Ch. 849, Statutes of 2002). These measures, in sum, require retail sellers and local publicly owned electric utilities to increase the amount of energy procured from eligible renewable energy resources to meet at least 33 percent of their total retail sales by 2020, in what is known as the Renewables Portfolio Standard.

Assembly Bill (AB) 32 (“The 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

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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.

SB 1122 – Bioenergy Feed-in Tariff (Rubio, Chapter 612, Statutes of 2012).

SB 1122 requires the CPUC to direct the investor‐owned electric utilities to collectively procure at least 250 MW of eligible renewable energy from small-scale bioenergy projects with capacities of 3 MW or less.

Additional information: http://www.cpuc.ca.gov/sb_1122/

Applicable Law: California Public Utilities Code § 399.20

Senate Bill 96 (Committee on Budget and Fiscal Review, Statutes of 2013)

SB 96 stipulates that in administering the EPIC program, the Energy Commission fund research, and development and demonstration programs and projects that:

o may lead to technological advancement and breakthroughs to overcome barriers that prevent the achievement of the state’s statutory energy goals and

o may result in advancements on the most significant technological challenges

Additional Information: http://www.leginfo.ca.gov/pub/13-14/bill/sen/sb_0051-0100/sb_96_bill_20130911_enrolled.pdf

Proclamations/Policies/Plans/Executive Orders

Proclamation of a State of Emergency 10-30-15

Governor’s 10-30-2015 Proclamation of a State of Emergency to protect communities against unprecedented tree die-off. The EPIC program is accelerating the schedule for release of the EPIC bioenergy solicitation in response to this proclamation.

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

Short-Lived Climate Pollutant Reduction Strategy (Draft 2015)Short-lived climate pollutants are powerful climate forcers that remain in the atmosphere for a much shorter period of time than longer-lived climate pollutants, such as carbon dioxide (CO2). Their relative potency, when measured in terms of how they heat the atmosphere, can be tens, hundreds, or even thousands of times greater than that of CO2. The impacts of short-lived climate pollutants are especially strong over the short term.  Reducing these emissions can make an immediate beneficial impact on climate change. 

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

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California Fire Hazard Severity Zone Map Update ProjectCalFire is updating its Fire Hazard Severity Zone Map as a result of the unprecedented number of dead and dying trees caused by the multi-year drought and bark beetle outbreak.

Additional information: http://egis.fire.ca.gov/TreeMortalityViewer/

CalFire Bark Beetles and Dead TreesThe U.S. Forest Service announced that it has identified an additional 26 million trees dead in California since October 2015. These trees are located in six counties across 760,000 acres in the southern Sierra Nevada region of the state, and are in addition to the 40 million trees that died statewide from 2010 to October 2015, bringing the total to at least 66 million dead trees. Most of these trees are conifers (pines) and they have died from drought and bark beetles. In some communities, up to 85 percent of forest trees have died, becoming dry fuel for wildfire.

The bark beetle epidemic has hit California’s wildland forests in the coastal ranges, mountains and foothill communities, posing particular threat where dead trees are near homes and private property. In these areas, CAL FIRE has launched a public outreach campaign to educate and motivate residents to take steps now to protect their home and property from wildfire.

Additional information: http://www.readyforwildfire.org/bark-beetles-dead-trees/ and http://calfire.ca.gov/index

2014 Disposal-Facility-Based Characterization of Solid Waste in California This is a comprehensive study on solid waste materials disposed in California. At landfills and transfer stations, samples of waste were collected from trucks bringing waste from three sectors (residential, commercial/industrial, and self-hauled). Samples were sorted into components to determine the composition of waste from each sector, and for the state as a whole. Data was also collected to determine how much waste each sector disposes statewide. This is primarily a repeat of the 2008 Waste Characterization Study. This report identified food-waste as the largest component of solid waste disposed at landfills - approximately 18 percent, equivalent to over 5.5 million tons annually statewide.

Additional information: http://www.calrecycle.ca.gov/Publications/Documents/1546%5C20151546.pdf

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

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

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

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

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

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

Applicable Law: California Public Resources §§ 25300 et. seq.

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 percent below 1990 levels by 2030, to ensure California meets its target of reducing greenhouse gas emissions to 80 percent below 1990 levels by 2050.

Reference Documents

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

o http://www.energy.ca.gov/research/

Refer to the documents below for information about activities associated with policy and applicable law:

o Additional information: o http://www.energy.ca.gov/energypolicy/ o Applicable Law: California Public Resources §§ 25300 et. seq.

Refer to the documents below for information about past research projects and activities associated with bioenergy solutions that support California’s industries, the environment, and the grid.

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o Browne, Kingsbury; Arthur Lilley; James Diebold. (Community Power Corporation). 2010. BioMax® 50. California Energy Commission, Energy Research and Development Division. Publication number: CEC-500-2013-157. www.energy.ca.gov/2013publications/CEC-500-2013-157/CEC-500-2013-157.pdf

o Samuelsen, Scott; Donald Dabdub; Jacob Brouwer; Marc Carreras‐Sospedra; Satish Vutukuru. 2009. Air Quality Impacts of Distributed Generation in the South Coast Air Basin and the San Joaquin Valley. California Energy Commission, Energy Research and Development Division. Publication Number: CEC‐500‐2009‐070 www.energy.ca.gov/2009publications/CEC-500-2009-070/CEC-500-2009-070.PDF

o O’Neill, Garry; John Nuffer. 2011. 2011 Bioenergy Action Plan. California Energy Commission, Efficiency and Renewables Division. Publication number: CEC-300-2011-001-CTF. www.energy.ca.gov/2011publications/CEC-300-2011-001/CEC-300-2011-001-CTF.PDF

o O’Neill, Garry. 2012. 2012 Bioenergy Action Plan. California Energy Commission, Efficiency and Renewables Division. http://www.resources.ca.gov/docs/energy_and_climate_change/2012_Bioenergy_Action_Plan.pdf

o Sotero, Maria. 2013. Public Interest Energy Research 2012 Annual Report. California Energy Commission, Energy Research and Development Division. Publication Number: CEC‐500‐2013‐013‐CMF. www.energy.ca.gov/2013publications/CEC-500-2013-013/CEC-500-2013-013-CMF.pdf

o For the Energy Commission’s Research and Development Webpage, please see: http://www.energy.ca.gov/research/

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F. FUNDING

1. Amount Available and Minimum/ Maximum Funding Amounts There is up to $23,000,000 available for grants awarded under this solicitation. The total, minimum, and maximum funding amounts for each project group are listed below.

Project Group Available funding

Minaward

amount

Maxaward

amount

Min match funding amount

Group 1: AR&D: Efficient, Sustainable and Lower-Cost Bioenergy: Innovations to Improve Woody Biomass-to-Electricity Systems

$5,000,000 $400,000 $1,500,000 $0

Group 2: TD&D: Demonstrate and Evaluate Environmentally and Economically Sustainable Woody Biomass-to-Electricity Systems

$10,000,000 $1,000,000 $5,000,000 20%

Group 3:TD&D: Demonstrate and Evaluate Environmentally and Economically Sustainable Food Waste Biomass-to-Electricity Systems

$8,000,000 $500,000 $4,000,000 20%

2. Match Funding Requirement Match funding is not required for Group 1 (Strategic Objective 3.1), but is required for Groups 2 and 3 (Strategic Objectives 13.1 and 13.2) in the amount of at least 20% of the requested project funds. For Group 1, applications that include match funding will receive additional points during the scoring phase. For Groups 2 and 3, applications that include more than the minimum required 20% will receive additional points during the scoring phase.

“Match funds” include: (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, EPIC funds received from other sources, future/contingent awards from other entities (public or private), 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 (e.g., photovoltaic systems).

Definitions of “match funding” categories are listed below.

o “Cash in hand” Funds means funds that are in the recipient’s possession and are reserved for the proposed project, meaning that they have not been

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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). As applicable, proof that the funds exist as cash is required at the project kick-off meeting. Cash in hand funds will be considered more favorably than other types of match funding during the scoring phase.

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

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

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

o “Travel” means all travel required to complete the tasks identified in the Scope of Work. Travel includes in-state and out-of-state travel, and travel to conferences. Use of match funds for out-of-state travel and travel to conferences is encouraged.

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 may be spent only during the agreement term, either before or concurrently with EPIC funds. Match funds also must be reported in invoices submitted to the Energy Commission.

All applicants providing match funds must submit commitment letters that: (1) identify the source(s) of the 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.

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3. Change in Funding Amount The Energy Commission reserves the right to: Increase or decrease the available funding and the group minimum/maximum award

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

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

G. KEY ACTIVITIES SCHEDULE

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

ACTIVITY DATE TIME15

Solicitation Release 6/27/2016Pre-Application Workshop 7/20/2016

7/21/20167/22/2016

9:30 am10:30 am10:30 am

Deadline for Written Questions16 7/29/2016 5:00 p.m.Anticipated Distribution of Questions and Answers week of 8/15/2016

Deadline to Submit Abstracts (Phase 1) 8/29/2016 9/8/2016 3:00 p.m.Anticipated Posting of Phase 1 Results 10/17/2016Deadline to Submit Applications (Phase 2) 12/16/2016 12/21/2016 3:00 p.m.Anticipated Notice of Proposed Award Posting Date 3/2017Anticipated Energy Commission Business Meeting Date

9/13/2017

Anticipated Agreement Start Date 10/18/2017Anticipated Agreement End Date 10/18/2021

H. PRE-APPLICATION WORKSHOP

Energy Commission staff will hold three Pre-Application Workshops to discuss the solicitation with applicants. Participation is optional but encouraged. Applicants may attend the workshops in-person, via the internet (WebEx, see instructions below), or via conference call on the date

15 Pacific Standard Time or Pacific Daylight Time, whichever is being observed.16 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.

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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.

Three workshops will be held. All workshops will include an overview and discussion of the three project groups.

Dates and times: July 20 at 9:30 a.m.; July 21 and 22 at 10:30 a.m.

Location of 7/20 workshop: California Energy Commission1516 9th StreetSacramento, CA 95814Charles Imbrecht Hearing Room

Location of 7/21 workshop: Castle Air Force Base 4225 N. Hospital Road Atwater, CA 95301 Castle Building 2100, Sequoia Room #109A

Location of 7/22 workshop: South Coast Air Quality Management District 21865 Copley Drive Diamond Bar, CA 91765 Room: CC6

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

number below:

Meeting Number: 928 045 576 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 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. 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

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media files requires appropriate players. Please determine whether the players are installed on your computer by visiting: https://energy.webex.com/energy/systemdiagnosis.php.

I. QUESTIONS

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

Crystal Presley-Willis, Commission Agreement OfficerCalifornia Energy Commission

1516 Ninth Street, MS-18Sacramento, California 95814

Telephone: (916) 654-5067FAX: (916) 654-4423

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

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

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

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 Commission Agreement Officer.

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II. Eligibility RequirementsA. APPLICANT REQUIREMENTS

1. Eligibility This solicitation is open to all public and private entities and individuals with the exception of publicly-owned utilities. In accordance with CPUC Decision 12-05-037, funds administered by the Energy Commission may not be used for any purposes associated with publicly-owned utility activities.

2. Terms and Conditions Each grant agreement resulting from this solicitation will include terms and conditions that set forth the recipient’s rights and responsibilities. By signing the Application Form (Attachment 1), each applicant agrees to enter into an agreement with the Energy Commission to conduct the proposed project according to the terms and conditions that correspond to its organization, without negotiation: (1) University of California 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 Registration California business entities and non-California business entities that conduct intrastate business in California and are required to register with the California Secretary of State must do so and be in good standing in order to enter into an agreement with the Energy Commission. If not currently registered with the California Secretary of State, applicants should contact the Secretary of State’s Office as soon as possible. For more information, visit the Secretary of State’s website at: www.sos.ca.gov.

B. PROJECT REQUIREMENTS

1. Development Stage a. Applied Research and Development Stage (AR&D) 

Group 1 projects must fall within the “applied research and development” stage, which includes activities that support pre-commercial (or not widely used in California) technologies and approaches that are designed to solve specific problems in the electricity sector. By contrast, the “technology demonstration and deployment” stage involves the installation and operation of pre-commercial technologies or strategies at a scale sufficiently large and in conditions sufficiently reflective of anticipated actual operating environments to enable appraisal of the operational and performance characteristics and the financial risks.17 Applied research and development activities may include early, pilot-scale testing activities that are necessary to demonstrate the feasibility of pre-commercial technologies.17 See CPUC “Phase 2” Decision 12-05-037 at pp. 36 and 90, http://docs.cpuc.ca.gov/PublishedDocs/WORD_PDF/FINAL_DECISION/167664.PDF.

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There are two typical types of AR&D projects: 1) applied research projects and 2) development projects. A project may contain aspects of both applied research and development work. Projects that include both applied research and development or just development components are considered AR&D pilot projects. An AR&D pilot project is a project that takes bench scale work to the next level, such as by testing on a larger scale system or demonstrating under real world conditions.

Using the Department of Energy (DOE) descriptions for “Technology Readiness Level” (TRL), AR&D projects must be within the range of TRL2 to TRL6.18

b. Technology Demonstration and Deployment Stage (TD&D)Group 2 and Group 3 projects must fall within the “technology demonstration and deployment” stage, which involves the installation and operation of pre-commercial (or not widely used in California) technologies or strategies at a scale sufficiently large and in conditions sufficiently reflective of anticipated actual operating environments to enable appraisal of operational and performance characteristics, and of financial risks.19

TD&D projects must focus on pre-commercial (or not widely used in California) technology demonstration and early-stage deployment of bioenergy technologies, systems, and strategies. The technologies, processes, and strategies must have been successfully demonstrated at pilot scale or shown to be technically feasible at commercial scale. Projects that make incremental changes to current technologies or strategies will be considered but applications should describe how the proposed project will dramatically change and improve operational performance or demonstrate strategies to significantly reduce operational costs.

Using the DOE descriptions for TRL, TD&D projects must be within the range of TRL7 to TRL9.20

2. Project Focus and Group Specific Qualifications a. Group 1 - Efficient, Sustainable and Lower-Cost Bioenergy: Innovations to

Improve Woody Biomass-to-Electricity SystemsGroup 1 targets early-stage innovative woody biomass technology and strategy advancements that will increase energy conversion efficiencies, reduce system costs, and address the use of woody biomass resources derived from California’s unprecedented tree-die off. Projects should develop novel systems, technologies and/or strategies to address issues of efficiency, affordability, reliability, and/or durability that will enable accelerated integration and deployment of woody biomass generation technologies. The fuel source must be “byproducts of sustainable forest management activities” as defined by the CPUC SB 1122 BioMAT program.21 Optional bonus points are available to project demonstrating that they are located in High Hazard Zones, as defined by CalFire.22

18 http://www2.lbl.gov/dir/assets/docs/TRL%20guide.pdf See pages 9-11.19 See CPUC “Phase 2” Decision 12-05-037 at pp. 39-40 and 90, http://docs.cpuc.ca.gov/PublishedDocs/WORD_PDF/FINAL_DECISION/167664.PDF.20 http://www2.lbl.gov/dir/assets/docs/TRL%20guide.pdf See pages 9-11.21 See CPUC D14-12-081 - Decision Implementing Senate Bill 1122, Section 2.2.3 Bioenergy Using Byproducts of Sustainable Forest Management and Appendix B SB 1122 Forest Biomass – Forest Biomass Sustainability Byproduct Eligibility Form: Instructions and Worksheet. http://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M143/K960/143960061.pdf 22 High Hazard Zones - The link to the HHZ map is: http://egis.fire.ca.gov/TreeMortalityViewer/

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Below are examples of the types of projects that may be funded:

Pilot-scale innovative projects developing or demonstrating technologies for converting wood wastes, those which are byproducts of sustainable forest management activities, into electricity in a more efficient, cost-effective and environmentally benign manner relative to a baseline such as combustion technology.

Projects piloting advanced pollution controls, and ultra-low emission generation technologies capable of meeting or exceeding local air quality standards at new or existing facilities.

Projects investigating and testing ways to make woody biomass technologies more flexible in terms of generation (ramping capabilities) without significant damage to equipment life, emission reduction, etc.

Projects focusing on biomass harvesting, processing, and handling systems using technologies and approaches to reduce the cost and environmental impacts of collecting and transporting biomass feedstocks, to increase the technical and economic viability of biomass feedstock for the purpose of renewable electricity generation. For example, a project designed to generate electricity as well as some renewable transportation fuel for use in harvesting, processing and handling equipment that provide biomass to that generation facility.

Projects developing, improving or using tools, techniques, and strategies to evaluate environmental and economic impacts of proposed technology and strategy solutions tied to woody biomass from “byproducts of forest management activities” as defined by the CPUC SB 1122 BioMAT program and/or use of the IOU Distribution Resources Plan (DRP)23 as a siting tool for forestry biomass projects, etc.

The following are ineligible for funding:Projects solely addressing the harvesting and/or transportation of woody-biomass without

having a tie to electricity generation. Because EPIC is funded by IOU ratepayers, it is anticipated that projects will be located

in IOU service territory. If the project is not located in IOU territory, applicant must describe intentions of obtaining an IOU PPA and/ or IOU ratepayer benefits in the Project Abstract and Project Narrative (Attachment 4).

Projects in POU territory intending to use on-site generation are not eligible.

b. Group 2 – Demonstrate and Evaluate Environmentally and Economically Sustainable Woody Biomass-to-Electricity Systems

Group 2 targets demonstration projects that prioritize woody biomass-to-energy thermochemical conversion projects in accordance with the Governor’s 10-30-2015 Proclamation of a State of Emergency24 to protect communities against unprecedented tree die-off.

Applicants must select boxes for Tier One and Tier Two High Hazard Zones in the Layer Visibility Legend to view the HHZs.23 DRP CPUC (R.14-08-013) Public Utilities Code Section 769 was instituted by AB 327, Sec. 8 (Perea, 2013). This new code section requires the electrical corporations to file distribution resources plan proposals by July 1, 2015. According to the Code, these plan proposals will “identify optimal locations for the deployment of distributed resources.” It defines “distributed energy resources” as “distributed renewable generation resources, energy efficiency, energy storage, electric vehicles, and demand response technologies.” Available at: http://www.cpuc.ca.gov/General.aspx?id=5071

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A portion of the woody biomass must come from  High Hazard Zones25 (HHZ), defined by CAL FIRE, as directed in the Governor’s 10-30-2015 Tree Mortality Proclamation. There must be verifiable documentation that Group 2 proposals meet this requirement by Phase 2. In the Phase 2 application, Applicants must provide supporting narrative or documentation, such as an agreement or permit to collect woody biomass from specific areas within a HHZ or a map showing the area of operation. Additionally, the woody biomass must be byproducts of sustainable forest management activities as defined by the CPUC’s BioMAT program. Applicants should explain how this requirement will be met.

The CPUC’s BioMAT program states that:

“For bioenergy using byproducts of sustainable forest management, 50 megawatts. Allocations under this category shall be determined based on the proportion of bioenergy that sustainable forest management providers derive from sustainable forest management in fire threat treatment areas, as designated by the Department of Forestry and Fire Protection.” 26

The CPUC Decision also notes:

“As with the other bioenergy technology categories, the general requirement that at least 80% of the fuel source, measured on an annual basis, must be of the type designated by the generator as the fuel source applies to the overall technology category of “by-products of sustainable forest management,” as characterized in this decision. If the generator chooses to use up to 20% fuel not of the designated type, it must use fuel that complies with the requirements set out in this decision for eligibility under SB 1122.” 27

Consistent with the CPUC’s decision, the same general feedstock requirement applies to Group   2. At least 80% of the fuel source, measured on an annual basis must be from “byproducts of sustainable forest management.” Additionally, some portion of the woody biomass must come from HHZs, as described above.

To ensure that the Evaluation Committee is able to determine that the project meets the feedstock requirements, applicants must to provide a breakdown of the proposed feedstocks and demonstrate how 80% of the feedstock will be made up of byproducts of sustainable forest management in terms of wet/dry tons per year. Per Attachment   11, Applicants are required to submit Intent and Commitment Letters for Feedstock Agreements. These feedstock agreements will be used to verify that the feedstock requirements (both type including primary and other and annual amount in dry/wet tons) will be met. An additional feedstock summary letter from the Applicant must be provided, describing each one of the expected feedstocks by type (including by primary and other),

24 https://www.gov.ca.gov/docs/10.30.15_Tree_Mortality_State_of_Emergency.pdf Ordering Paragraph 11 of the Proclamation. 25 The link to the HHZ map is: http://egis.fire.ca.gov/TreeMortalityViewer/ Applicants must select boxes for Tier One and Tier Two High Hazard Zones in the Layer Visibility Legend to view the HHZs. 26 http://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M143/K960/143960061.pdf Section 2.2.3, page 22.27 Ibid. Section 2.2.3.5, page 32.

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quantities of each feedstock (dry/wet tons) per month and/or quarter (as available) and/or year, as well as overall totals for the project term (by year).

The feedstock summary letter, the feedstock letters of intent and commitment, along with the Project Abstract and, as applicable, Project Narrative will be considered by the Evaluation Committee in evaluating the project. Additionally, projects will be required to report monthly or quarterly (consistent with project progress report schedule) as well as annually on the type (including primary and other), quantity (dry/wet tons) of each feedstock and overall totals.

Projects must be “community-scale” or “community-scale” focused. This means the proposed projects will support or use technologies and strategies sized to use the quantity of locally sourced biomass available for power generation. The feedstock must be adequate considering available biomass supply, cost, and distance from the generating facility. Environmental and/or community concerns, such as maintaining materials needed for soil fertility, habitat, and erosion control, providing jobs, as well as providing other benefits to local communities will also be taken into consideration. Applicants should explain how the proposal is community-scale, providing examples and supporting documentation as applicable.

Projects must be sized for a nameplate capacity of 3MW AC or less of electricity generation. This size limitation is consistent with the SB 1122 CPUC BioMAT program28 and helps ensure the project is community-scale and is using locally sourced biomass.

A limited amount of pre-development activities (i.e., tasks that must occur before the project is ready for the demonstration or deployment phase of the project) are allowed. However, the pre-development activities should not exceed 12 months after receiving an award and should be accounted for in the project schedule (Attachment 6a). The Commission expects recipients to achieve commercial operations according to the agreed upon schedule and due dates.

One member of the team needs to have completed at least one project of similar technology and capacity or begun construction of at least one other similar project.

Below are examples of the types of projects that may be funded: Projects demonstrating thermochemical conversion systems, technologies and

strategies. Projects developing or demonstrating at pilot-scale, lab-proven systems and

technologies for converting wood wastes, those which are byproducts of sustainable forest management activities, into electricity in a more efficient, cost-effective and environmentally benign manner relative to a baseline technology such as combustion technologies.

Projects demonstrating advanced pollution controls, and/or ultra-low emission generation technologies capable of meeting or exceeding local air quality standards at new or existing facilities (cannot be electricity generating facilities larger than 3MW).

Projects demonstrating the ability to provide flexible generation without significantly compromising equipment life, emission reduction, etc.

Innovative fuel handling and delivery systems or strategies for the purpose of woody biomass-to-electricity generation. For example, proposals may include the

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demonstration of advanced biomass fuel handling and delivery systems or strategies which have been successfully evaluated through applied research, are ready for full‐scale demonstration, and are tied to a woody biomass facility.

Innovative approaches to pre‐processing, drying and densification systems to facilitate woody biomass fuel storage, and/or energy conversion to reduce handling and transportation costs and expand fuel markets for the purpose of woody biomass-to-electricity generation.

Co-located biopower projects are encouraged: Demonstrating pre‐commercial integrated systems that leverage synergies of co‐locating biopower with other facilities, such as biofuels production, waste diversion transfer/processing, food processing and/or disposal, manufacturing, and industrial facilities.

The following are ineligible for funding: Projects solely addressing the harvesting and/or transportation of woody biomass or

other issues without having a direct tie to woody biomass-to-electricity generation. Projects focused primarily on injecting biomethane into the natural gas pipelines.Because EPIC is funded by IOU ratepayers, it is anticipated that projects will be located in

IOU service territory. If the project is not located in IOU territory, applicant must describe intentions of obtaining an IOU PPA and IOU benefits in the Project Abstract and Project Narrative (Attachment 4).

Projects in POU territory intending to use on-site generation.

c. Group 3 – Demonstrate and Evaluate Environmentally and Economically Sustainable Food Waste Biomass-to-Electricity Systems

Group 3 targets development and demonstration of food waste-to-energy biochemical conversion projects. Projects must be located in Southern California, defined as the following 10 counties: Imperial, Kern, Los Angeles, Orange, Riverside, San Bernardino, San Diego, Santa Barbara, San Luis Obispo and Ventura. Eligible feedstocks include food-waste that is typically landfilled (for example, from schools, hospitals, prisons, or residential food-waste programs), as well as Fats Oil and Grease (FOG) and/or Grease Trap Waste (GTW). Food-waste that is typically landfilled should make up at least 70% of the total project feedstocks.   The solicitation acknowledges that the eligible feedstocks and “other” feedstocks may likely be subsets within the same CPUC biogas feedstock category. For purposes of this solicitation, the expectation is that the primary feedstocks (food-waste that is typically landfilled, FOG and/or GTW) will make up at least 70% of the total feedstock(s) covered by awarded project. Projects using higher percentages are likely to be scored higher, as they may better align with the Group 3 purpose and goals. Projects using less than 70% of the primary feedstock(s) need to strongly justify why this is needed for project success. Preference will be given to proposals that leverage existing food recovery collection and distribution programs and demonstrate that steps have been taken to ensure that rescued food is used to feed people prior to recovering food-waste for electricity generation.29

Other organic waste feedstocks (which must be consistent with the SB 1122 biogas categories: wastewater treatment, municipal organic waste diversion, and food processing). 30 may be used in conjunction with eligible feedstocks if necessary for project

29 http://www.calrecycle.ca.gov/organics/food/Donation/default.htm page ES-130 http://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M143/K960/143960061.pdf See page 10.

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viability. For purposes of this solicitation, food-waste does not mean food processing waste or food-waste from farms. However, food processing waste and/or food-waste from farms may be used in conjunction with the primary eligible feedstocks. In situations where food processing or “other” eligible feedstocks are higher than 30% of the total project feedstock, the applicant must provide a strong justification as to why this is necessary for project success.

If this is a codigestion project, the feedstocks covered by the project (as provided in the Letter of Intent and Commitment for Feedstock Agreement) is what will be considered in evaluating the project feedstocks.

For example, if a project proposes to co-digest 10 wet tons/ year of food waste from schools at an existing wastewater treatment facility, the food waste from schools is 100% of the project feedstock as this is the feedstock covered by the project. In this example, the waste currently used at the existing wastewater treatment facility would not be part of the equation to evaluate how the project meets the eligible feedstock preferences.

To ensure that the Evaluation Committee is able to determine that the project meets the primary feedstock requirements, applicants must provide a breakdown of the proposed feedstocks and demonstrate how food-waste that is typically landfilled, FOG and/or GTW make up 70% of the feedstock in terms of dry/wet tons per year. Per Attachment   11, Applicants are required to submit Intent and Commitment Letters for Feedstock Agreements. These feedstock agreements will be used to verify that the feedstock requirements (both type including primary and other and annual amount in dry/wet tons) will be met. An additional feedstock summary letter from the Applicant must be provided, describing each one of the expected feedstocks by type (including by primary and other), quantities of each feedstock (dry/wet tons per month/quarter and year) as well as overall totals for the project term (by year).

The feedstock summary letter, the feedstock letters of intent and commitment, along with the Project Abstract and, as applicable, Project Narrative will be considered by the Evaluation Committee in evaluating the project feedstocks as well as the justification for projects that have percentages of “other” feedstocks (not the primary feedstocks) over 30%. Additionally, projects will be required to report monthly or quarterly (consistent with project progress report schedule) as well as annually on the type (including primary and other), quantity (dry/wet tons) of each feedstock and overall totals.

Projects must be “community-scale” or “community-scale” focused. This means the proposed projects will support or use technologies and strategies sized to use the quantity of locally sourced biomass available for power generation. The feedstock must be adequate considering available biomass supply, cost, and distance from the generating facility. Environmental and community concerns, such as reducing methane emissions, food recovery to feed hungry people, odor reduction, as well as providing other benefits to local communities will also be taken into consideration. Applicants should explain how the proposal is community-scale, providing examples and supporting documentation as applicable.

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Projects must be sized for a nameplate capacity of 3MW AC or less of electricity generation. This size limitation is consistent with the SB 1122 CPUC BioMAT program31 and helps ensure the project is community-scale and is using locally sourced biomass.

A limited amount of pre-development activities (i.e., tasks that must occur before the project is ready for the demonstration or deployment phase of the project) are allowed. However, the pre-development activities should not exceed 12 months after receiving an award and should be accounted for in the project schedule (Attachment 6a). The Commission expects recipients to achieve commercial operations according to the agreed upon schedule and due dates.

One member of the team needs to have completed at least one project of similar technology and capacity or begun construction of at least one other similar project.

Below are examples of the types of projects that may be funded: Innovative approaches in biological conversion, such as demonstrating appropriate co-

digestion blending ratios that maximize energy production without compromising the digester.

Low-cost, sustainable fuel and effluent handling and processing systems demonstrating or deploying bioenergy generation technologies.

Biogas cleanup technologies and upgrading systems used for anaerobic digestion systems or co-digestion capabilities designed to increase electricity generation.

Innovative waste pre-processing systems (sorting, separating, de-contaminating, etc.) to enable cost-effective digestion of food-waste at existing or new digesters must have an electricity generation component.

Food waste-to-energy as part of an integrated food-waste reduction and recovery approach, i.e. a project which incorporates food-waste prevention, food rescue facilities, composting, and anaerobic digestion for maximum beneficial food-waste reduction and recovery.

Demonstrating food waste-to-energy as part of an integrated electricity and transportation (i.e. Renewable Natural Gas) fuel production system, emphasis must be on electricity generation. Note: electricity production must be prioritized over fuel production.

The following are ineligible for funding: Projects solely addressing the transportation or processing of food-waste or other issues

without having a direct tie to biomass-to-electricity generation. Projects focused primarily on injecting biomethane into the natural gas pipelines.Because EPIC is funded by IOU ratepayers, it is anticipated that projects will be located in

IOU service territory. If the project is not located in IOU territory, applicant must describe intentions of obtaining an IOU PPA and IOU benefits in the Project Abstract and Project Narrative (Attachment 4).

Projects in POU territory intending to use on-site generation.

3. Generating Renewable Electricity For this solicitation, eligible research, technologies and/or strategies must have electricity generation as the main focus/product. Generating valuable byproducts is acceptable and encouraged, but the main focus of the research, development and/or demonstration should be 31 http://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M143/K960/143960061.pdf

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on generating electricity. Because EPIC is funded by IOU ratepayers, it is anticipated that projects will be located in IOU territory. For Groups 2 and 3, there should be an ultimate goal and intention of securing an electricity generation Power Purchase Agreement (PPA) with one of the California Investor Owned Utilities (IOUs) or generating electricity for on-site use. Demonstration of steps taken to obtain a PPA will be competitively evaluated against other proposals. If the project is not located in IOU territory, applicants must describe intentions of obtaining an IOU PPA and describe IOU ratepayer benefits in the Project Abstract and Project Narrative (Attachment 4).

If an AR&D pilot project intends to generate electricity for sale, the application must demonstrate how they will ultimately use bioenergy to sell to one of the IOUs or for on-site use in IOU territory.

An example of how applicants can demonstrate the intention to obtain a PPA could include demonstrating the ability to participate in Senate Bill 1122, the CPUC’s BioMAT procurement mechanism or another IOU RPS procurement mechanism, and using one of these mechanisms to obtain a PPA with an IOU during the course of the project. Funded projects (including AR&D pilot projects) resulting in electricity contracts must include electricity contracts with IOUs. Projects may not result in a PPA solely with a Publicly Owned Utility.

To be eligible for an IOU RPS procurement mechanism, facilities must be RPS-eligible, which includes being connected to the Western Electricity Coordinating Council (WECC) service area and meeting the requirements in the RPS Eligibility Guidebook.32 These requirements include being registered in the Western Renewable Energy Generation Information System (WREGIS) tracking system.

Applicants are urged to partner with an IOU to demonstrate their ability to participate in an RPS procurement mechanism. This may be a letter stating the project, as designed, would qualify to participate in an RPS procurement program and intends to do so or other documentation related to efforts to participate in one of the programs. Letters of support from the IOUs are encouraged.

Applicants should refer to the CPUC website for RPS procurement rules and structure,33

SB 1122 legislation34 and the CPUC’s BioMAT program for program requirements.35 This solicitation acknowledges that the CPUC BioMAT proceeding is on-going36 and that the Governor directed the CPUC to revisit the BioMAT program in his Proclamation of a State of Emergency regarding the unprecedented tree die-off.37 Applicants are encouraged to demonstrate if they intend to participate in the BioMAT program.

32 http://www.energy.ca.gov/portfolio/index.html 33 http://www.cpuc.ca.gov/RPS_Procurement_Programs/ 34 http://www.leginfo.ca.gov/pub/11-12/bill/sen/sb_1101-1150/sb_1122_bill_20120927_chaptered.pdf 35 http://www.cpuc.ca.gov/SB_1122/ 36 http://docs.cpuc.ca.gov/SearchRes.aspx?docformat=ALL&docid=158378160 37 https://www.gov.ca.gov/docs/10.30.15_Tree_Mortality_State_of_Emergency.pdf Ordering Paragraph 9 of the Proclamation.

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Applicants should review the CPUC Staff Proposal38 and demonstrate how the project meets the BioMAT’s minimum project viability criteria or relevant criteria.39 While these criteria and Staff Proposal are subject to change, they provide examples of what can be considered project viability criteria. For example, demonstration that progress has been made in securing interconnection of the project, by providing copies of the System Impact Study, Phase I study, or documentation demonstrating that the project passed the Fast Track screens or supplemental review, would likely be reviewed favorably by the technical scoring committee. Note: Some interconnection costs could be considered pre-development costs. The Energy Commission may cover some of the interconnection costs (e.g., equipment, system upgrades), but will not fund interconnection studies. Applicants are expected to provide a description of potential procurement mechanism(s), detail how the project meets basic project viability criteria, and provide any information regarding progress made in securing interconnection for the project.

Projects generating electricity for on-site use are eligible to apply into this solicitation. Information regarding the process and progress made to secure the ability to generate electricity for on-site use should be explained in the proposal.

Applicants planning to participate in the CPUC’s Self-Generation Incentive program40 or the Net Energy Metering program41 should explain their intentions and progress made to date.

For Groups 2 and 3: Projects focused primarily on injecting biomethane into the natural gas pipelines are not eligible for funding. Funding opportunities may be available through the Energy Commission’s Natural Gas Research and Development Program and the Alternative and Renewable Fuel and Vehicle Technology Program.42

4. Measurement and Verification Plan

38CPUC Staff Proposal to implement the Governor’s Emergency Proclamation on Tree Mortality by making targeted changes to the BioMAT program to facilitate contracts with facilities using fuel from HHZs. http://docs.cpuc.ca.gov/SearchRes.aspx?docformat=ALL&docid=158378160 39 Pursuant to CPUC Decisions D.12-05-035, D.13-01-041, and D.13-05-034, generators interested in participating in the FiT program must first meet the program’s minimum project viability criteria. 1) Bid fee: $2/kW bid fee; 2) Interconnection: System Impact Study, Phase I study, or passed the Fast Track screens or supplemental review; 3) Site Control: Attest to: 100% site control through (a) direct ownership, (b) lease, or (c) an option to lease or purchase that may be exercised upon contract execution; 4) Development Experience: Attest that: one member of the development team has (a) completed at least one project of similar technology and capacity or (b) begun construction of at least one other similar project; [Clarified per D.13-05-034] “A project less than 1 MW will be deemed to be similar capacity to a Project up to 1 MW. A project between 1 MW to 3 MW will be deemed to be a similar capacity to a Project up to 3 MW. For example, for a 3 MW Project, a project of similar capacity cannot be smaller than 1 MW.” 5) Online Date: 24 months with one 6-month extension for regulatory delays; 6) Note criteria 6 Seller Concentration was removed per D.13-05-034; 7) Commercialized Technology: Attest that: project is based on commercialized technology with at least two installations in the world.40 For more information, see: http://www.cpuc.ca.gov/General.aspx?id=593541 For more information, see: http://www.cpuc.ca.gov/General.aspx?id=380042 For more information, see: http://www.energy.ca.gov/contracts/pier.html and http://www.energy.ca.gov/drive/funding/

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All applications must include a Measurement and Verification Plan in the Project Narrative (Attachment 4) that describes how actual project benefits will be measured and quantified, such as by pre and post-project energy use (kilowatt hours, kilowatts) and costs.

Additionally, for Groups 2 and 3 only, applicants must address costs and benefits – for example in terms of energy costs and/or savings or environmental costs and/or benefits. The instructions in the Cost and Benefit Calculations attachment provide the format and details of what is required (Attachment 12 or Attachments 12a and 12b). The information used in Attachment 12 (or Attachments 12a and 12b )may inform the measurement and verification plan described in Attachment 4 or vice versa. Groups 2 and 3 Applicants need to complete both a measurement and verification plan in Attachment 4 and complete Attachment 12 Cost and Benefit Calculations (or Attachments 12a and 12b).

5. Ratepayer Benefits, Technological Advancements, and Breakthroughs California Public Resources Code Section 25711.5(a) requires EPIC-funded projects to:

Benefit electricity ratepayers; and Lead to technological advancement and breakthroughs to overcome the barriers

that prevent the achievement of the state’s statutory energy goals. The CPUC defines “ratepayer benefits” as greater reliability, lower costs, and increased safety.43 The CPUC has also adopted the following guiding principles as complements to the key principle of electricity ratepayer benefit: societal benefits; GHG emissions mitigation and adaptation in the electricity sector at the lowest possible cost; the loading order; low-emission vehicles/transportation; economic development; and efficient use of ratepayer monies.44

Additional examples of co-benefits important in this EPIC solicitation include:

Annual electricity and thermal savings (kilowatt-hours and therms) Peak load reduction and/or shifting Flexible generation (ability to ramp up and down, for example, in response to

solar and wind intermittency); and/or Energy cost reductions; Integration/reliability services; Reduced risk of forest fires; Reduction in the amount of biomass that goes to landfills; GHG emission reductions; Air emissions reductions (e.g., oxides of nitrogen); Net local air quality benefits; and Water use and/or cost reductions Watershed benefits

Accordingly, the Project Narrative Form (Attachment 4) and the “Goals and Objectives” section of the Scope of Work Template (Attachment 6) must describe how the project will: (1) benefit California IOU ratepayers by increasing reliability, lowering costs, and/or increasing safety; (2)

43 Id. at p. 19.44 Id. at pp. 19-20.

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lead to technological advancement and breakthroughs to overcome barriers to achieving the state’s statutory energy goals; and as applicable (3) provide additional co-benefits.

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III. Application Organization and Submission InstructionsA. ABSTRACT AND APPLICATION FORMAT, PAGE LIMITS, AND NUMBER OF COPIES

1. PHASE 1: ABSTRACT ORGANIZATION Proposals may be submitted either electronically or hard copy with electronic files on a memory stick. The following table summarizes the abstract formatting and page limit requirements:

Format Format Instructions 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) (For hard copy submissions only.) 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 (For hard copy submissions only.)

Page Limitsand

Organization

Page Limits are as follows: Limit each abstract to eight pages. The Application Form (Attachment 1),

abstract cover page, evidence of registration with the California Secretary of State, Attachment 8 CEQA form (optional), site and feedstock agreement letters of intent, and other (optional) letters of support do not count against this limit.

Organization InstructionsOrganize the abstract in the order below:

A. Application Form (Attachment 1 - does not count against page limit)B. Abstract Limit each abstract to eight pages (Attachment 4)C. CEQA Compliance Form Optional (Attachment 8 - does not count

against page limit)D. Letters of intent for site control and feedstock agreement (Attachment 11

– do not count against page limit) (Required for Group 1 AR&D pilot projects and Group 2 and 3 projects only)

Hard Copy Submissions

Three hard copies (including one copy with original signatures) One electronic copy (on a CD-ROM or USB memory stick

Electronic Submission

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 by the deadline 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,

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must be in Excel format.

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2. PHASE 2: APPLICATION ORGANIZATION Proposals may be submitted either electronically or hard copy with electronic files on a memory stick. The following table summarizes the application formatting and page limit requirements:

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) (For hard copy submissions only.) 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 (For hard copy submissions only.)

Page Limits Page limits are as follows:o Executive Summary (Attachment 2): two pageso Fact Sheet (Attachment 3): two pageso Project Narrative Form (Attachment 4): up to fifteen pages

excluding documentation for CEQA (Note that reviewers and scorers may review the project abstract from Phase 1 in the Phase 2 scoring analysis)

o 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 may not cumulatively 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 Cost and Benefit Calculations (Attachment 12 or Attachments

12a and 12b – Groups 2 and 3 ONLY –): No more than 16 pages preferred)

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Small-Scale Bioenergy LCOE calculator (or other) (accessible at: http://www.cpuc.ca.gov/NR/rdonlyres/69848D0B-9EA3-466B- 8B8F-CE1E0EEF1894/0/PublicDRAFTLCOEModelCPUCSB1122.xlsx

o Performance Data (Attachment 13 – Groups 2 and 3 ONLY): no more than 10 pages preferred.

Hard Copy Submissions

Six hard copies (including one copy with original signatures)One electronic copy (on a CD-ROM or USB memory stick)

Electronic Submission

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 by the deadline 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.

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B. APPLICATION DELIVERY

For hard copy submissions, include the following label information on the mailing envelope:

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

GFO-15-325Contracts, Grants, and Loans Office, MS-18California Energy Commission1516 Ninth Street, 1st FloorSacramento, California 95814

Applications must be delivered to the Energy Commission’s Contracts, Grants and Loans Office in a sealed package (in person or via U.S. mail or courier service) during normal business hours, prior to the date and time specified in the “Key Activities Schedule” in Part I of this solicitation. Abstracts and applications received after the specified date and time are considered late and will not be accepted. Postmark dates of mailing, e-mail, and facsimile (FAX) transmissions are not acceptable in whole or in part, under any circumstances.

For electronic submissions, applicants must use the Energy Commission Grant Solicitation System available at: https://gss.energy.ca.gov

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. APPLICATION ORGANIZATION AND CONTENT1. Submit attachments in the order specified below.

2. Label the proposal application cover “Grant Funding Opportunity GFO-15-325 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 AttachmentNote all Attachments are required for Phase 2 (as applicable), while Attachments 1, 4, 8 (optional) and 11 (as applicable) are required for Phase 1

1 (Phase 1 and Phase 2) Application Form (requires signature)2 (Phase 2 ONLY) Executive Summary3 (Phase 2 ONLY) Fact Sheet4 (Phase 1) Abstract

(Phase 2) Project Narrative

Abstract and Project Narrative

5 (Phase 2 ONLY) Project Team Form6 (Phase 2 ONLY) Scope of Work Template6a (Phase 2 ONLY) Scope of Work Template: Project Schedule (Excel Spreadsheet)

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7 (Phase 2 ONLY) Budget Forms (Excel Spreadsheet)8 (Phase  1 - Optional)(Phase 2 – Required)

CEQA Compliance Form

9 (Phase 2 ONLY) References and Work Product Form10 (Phase 2 ONLY) Contact List Template11 (Phase 1 – As Required)

(Phase 2 – As Required)

Intent, Commitment and Support Letter Form (letters require signature)

12 (Phase 2 ONLY) Cost and Benefit Calculations - Required for Groups 2 and 3 only - CPUC LCOE worksheets or other

13 (Phase 2 ONLY) Performance Data – Required for Groups 2 and 3 only

Below is a description of each required section of the application:

1. Application Form (Attachment 1)This form requests basic information about the applicant and the project. The application must include an original form that includes all requested information and is signed by an authorized representative of the applicant’s organization.

2. Executive Summary Form (Attachment 2)The Executive Summary must include: 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 must present 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 must follow 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. Abstract and Project Narrative Form (Attachment 4)

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This form will include the majority of the applicant’s responses to the Phase 1 Technical Abstract Screening Criteria and Phase 2 Scoring Criteria in Part IV, including addressing progress in achieving CEQA completion.

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5. Project Team Form (Attachment 5)Identify by name all key personnel45 assigned to the project, including the project manager and principal investigator (if applicable), and individuals employed by any major subcontractor (i.e., a subcontractor receiving at least 25 percent of Commission funds or $100,000, whichever is less). Clearly describe their individual areas of responsibility. Include the information required for each individual, including a resume (maximum two pages, printed double-sided).

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

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

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

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

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

8) Prevailing wage requirement: Applicants must pay prevailing wages (i.e., rates pre-determined by the California Department of Industrial Relations) to all workers employed on public works projects that exceed $1,000. Public works projects involve demolition, installation, repair, or maintenance work. If the proposed project involves such work, the Applicant must assume that the project is a public work and budget accordingly unless it obtains a determination from the California Department of Industrial Relations or a court of competent jurisdiction that the project is not a public work. Please see the terms and conditions for additional information about the prevailing wage requirement.

8. California Environmental Quality Act (CEQA) Compliance Form (Attachment 8)The Energy Commission requires the information on this form to facilitate its evaluation of the funded activities under CEQA (Public Resources Code Section 21000 et. seq.), a law that requires state and local agencies in California to identify and mitigate the significant environmental impacts of their actions. The form will also help applicants to determine CEQA compliance obligations by identifying which funded activities may trigger CEQA. If the project includes only activities that do not trigger 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 cancellation of the award and allocation of funding to the next highest-scoring project.

Phase 1: Applicants may submit Attachment 8 CEQA Compliance Form as part of Phase 1 rather than describe their CEQA progress in Attachment 4 Abstract. This option is designed to allow applicants to use more text in the Attachment 4 Abstract describing the project and then providing the project’s CEQA description in Attachment 8 CEQA Compliance Form.

Phase 2: In addition to submitting Attachment 8 CEQA Compliance Form, applicants must also address actions toward CEQA compliance in the Project Narrative (Attachment 4) for Phase 2. If CEQA is not applicable, explain why it is not applicable.

Note: Regardless of submitting Attachment 8 CEQA Compliance Form as part of the Phase 1 application process, Attachment 8 CEQA Compliance Form must be submitted as part of the Phase 2 application process and should be updated to reflect any progress made since submittal of the Project Abstract.

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.

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3) Section 3: Groups 2 and 3 must demonstrate that one member of the team has completed at least one project of similar technology level or begun construction of at least one other similar project.

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. Intent, Commitment and Support Letter Form (Attachment 11)

Letters of intent are part of the Phase 1 application process. Letters of intent demonstrate the applicants intent to secure site control and feedstock agreements. If the site or feedstock agreement is already committed by Phase 1, applicants may provide supporting documentation demonstrating the commitment.

A commitment letter is part of the Phase 2 application process and commits an entity or individual to providing the site, feedstock, service or funding described in the letter. Commitment letters are part of Phase 2 and are required for AR&D pilot and TD&D projects.

A support letter details an entity or individual’s support for the project and is part of Phase 2.

A community support letter details a community organization or local government’s support of the project and support of the use of locally sourced biomass fuel for the project and is part of Phase 2 and only required for Groups 2 and 3. Such letter(s) of support may be submitted either as part of the application package or prior to approval at an Energy Commission Business Meeting if recommended for an award. Applications that include the community organization or local government letter(s) of support may receive higher consideration in scoring criteria 4 than those that do not include such letter(s) of support.

Before an award is granted for AR&D pilot and TD&D projects, the Local Air District must be contacted regarding the project. Details are provided below.

Phase 11) Letters of Intent (Required for AR&D pilot projects and TD&D projects)

Phase 1 of the application process requires two letters of intent for Applicants with AR&D pilot or TD&D demonstration or deployment projects. One letter is for the intended site control and the other is for the intended feedstock agreement.

Site Control: AR&D pilot and TD&D demonstration or deployment projects must secure a site in California and within a California Balancing Authority. This is a requirement that must be met to participate in Phase 2 of this solicitation. However, only a letter of intent for a potential project site is required for Phase 1. If site control will not be secured until Phase 2, Applicant must explain intentions and likelihood of obtaining site control by Phase 2 in the letter of intent.

Feedstock Agreement: AR&D pilot projects and TD&D projects must submit a letter of intent for a feedstock agreement. The letter of intent for a feedstock agreement should include all of the following:

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Identification of the feedstock(s) and explanation as to how the feedstock meets the requirements for the project group (as applicable) and include feedstock types (categorized by primary and other) and expected monthly or quarterly (as available) and/or annual amounts (wet or dry ton);

Description of feedstock(s) likely location relative to project site;

Proposed plan for transporting feedstock to the project site;

Plans to obtain a guarantee of the feedstock for the life of the project;

Demonstrate likelihood there will be sufficient feedstock for the life of the project (project term); and

Other information that may be useful to the reviewing and scoring team (for example, applicants may include a “Forest Biomass Sustainability Byproduct Eligibility Form” from Appendix B of the CPUC Decision Implementing Senate Bill 1122).46

It is possible to provide multiple letters of intent, for example: 1) a letter describing the requirements above and signed by the applicant or feedstock provider; and 2) a letter signed by an authorized representative of the proposed feedstock committing to provide feedstock for the proposed activities during the terms of the project. An additional feedstock summary letter from the Applicant describing each one of the expected feedstocks by type (and categorized as primary and other), amount (wet/dry ton) per month and/or quarter (as available) and/or year for the project term (by year) must be provided. This feedstock summary letter and the feedstock letters of intent will be used to evaluate how the feedstocks meet the project requirements.

For Group 3 only, in situations where food processing or “other” eligible feedstocks are higher than 30% of the total project feedstock, the applicant must provide a strong justification as to why this is necessary for project success. This feedstock summary letter should include the justification for the feedstocks, and should also be addressed in the Project Abstract.

Phase 22) Commitment Letters

Site Control is required for AR&D pilot projects and TD&D projects. If the project involves pilot testing/demonstration/deployment activities, the applicant must include a letter of commitment for site control signed by an authorized representative of the proposed pilot, demonstration, or deployment site that commits to providing the site for the proposed activities.

Applicants are encouraged to have one or more backup pilot, demonstration, or deployment sites because awards will not be made for at least 6-12 months after Phase 2 proposal submittal. If a site becomes unavailable, the Applicant is responsible for finding another suitable site. The loss of a project site will place the grant award in jeopardy. These situations will be handled on a case-by-case basis.

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Ways that 100 percent site control may be demonstrated include letters attesting to or documentation confirming direct ownership, lease, an option to lease or purchase that may be exercised upon receipt of award, agreement for the use of in-kind real property, or other such supporting documentation.

Feedstock Agreement(s) is required for AR&D pilot projects or TD&D projects. Applicants must:

Identify the feedstock(s) and explanation as to how the feedstock meets the requirements for the project group (as applicable) and include feedstock types (categorized by primary and other) and expected monthly or quarterly (as available) and/or annual amounts (wet or dry ton);

Describe the feedstock(s) location relative to the project site;

Explain the proposed plan for transporting the feedstock to the project site;

Provide assurance there will be sufficient feedstock for the life of the project (project term); and

Other helpful information that may be useful to the reviewing and scoring team (for example, applicants may include a “Forest Biomass Sustainability Byproduct Eligibility Form” from Appendix B of the CPUC Decision Implementing Senate Bill 1122).47

It is possible to provide two multiple commitment letters, for example: 1) a letter describing the requirements above and signed by the applicant or feed stock provider; and 2) a letter signed by an authorized representative of the proposed feedstock committing to provide feedstock for the proposed activities during the terms of the project. An additional letter from the Applicant describing each one of the expected feedstocks by type (and categorized as primary and other), amount (wet/dry ton) per month and/or quarter (as available) and/or year for the project term (by year) must be provided. This summary feedstock letter and the Feedstock Commitment Letters will be used to evaluate how the feedstocks meet the project requirements.

For Group 3 only, in situations where food processing or “other” eligible feedstocks are higher than 30% of the total project feedstock, the applicant must provide a strong justification as to why this is necessary for project success. This letter should include the justification for the feedstocks, and should also be addressed in the Project Narrative.

Match funding is optional for AR&D projects and required for TD&D projects. 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:

Identify the source(s) of the funds;

Justify the dollar value claimed;

Guarantee the availability of the funds for the project; and

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Provide a strategy for replacing the funds if they are significantly reduced or lost.

Group 1 applicants may receive bonus points for match funding. Groups 2 and 3 applicants exceeding the minimum 20 percent requirement may receive bonus points based on the excess match funding amount (see Phase 2 Scoring Criteria Bonus Points).

Project partners that are making contributions other than match funding or a test/demonstration/deployment site must submit a commitment letter signed by an authorized representative that:

Identifies how the partner will contribute to the project; and

Commits to making the contribution.

3) Support Letters

Stakeholder support 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:

Describes the stakeholder’s interest or involvement in the project; Indicates the extent to which the project has the support of the relevant industry

and/or organizations; and Describes any support it intends (but does not necessarily commit) to provide for

the project, such as funding or the provision of a test, demonstration, or deployment site.

Community-scale support (required for Groups 2 and 3 Only) Applicants must provide at least one letter from a community organization or local government in support of the project and in support of the use of locally sourced biomass fuel for the project. Such letter(s) of support may be submitted either as part of the application package or prior to approval at an Energy Commission Business Meeting if recommended for an award. Applications that include the community organization or local government letter(s) of support may receive higher consideration in scoring criteria 4 than those that do not include such letter(s) of support.

Before Award is Granted

4) Local Air District Letter of Awareness

Local Air Districts must be contacted for AR&D pilot projects and TD&D projects. If the local air district is not the lead agency for the CEQA process, then a letter from the local air district should be provided demonstrating awareness of and involvement in the project. If a letter from the local air district is not available prior to submitting the proposal, a copy of a letter from the applicant notifying the air district of the project is acceptable and must be provided before an award is granted. Applicant must ensure that generation equipment purchased for the project will meet air quality regulations anticipated to be in effect when the project becomes operational.

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12. Cost and Benefit Calculations Groups 2 and 3 Only (Attachments12 or 12a and 12b, and Small-Scale Bioenergy LCOE calculator, or other as applicable)

Submitting information confidentially is optional and applicants may use the original Attachment 12 if they prefer not to submit confidential information. For applicants who want to protect their cost information, Attachment 12 information may be submitted using Attachments 12a and 12b instead of the original Attachment 12.

Attachment 12 (or Attachments 12a and 12b) is only for those eligible to apply to Phase   2, in Groups 2 and 3, and requires applicants to provide information on the proposed technology’s anticipated levelized cost of electricity (LCOE). Because many Group 2 and   3 applicants are likely to participate in the California Public Utility Commission’s (CPUC) SB 1122, BioMAT market-based Feed-in-Tariff program, Energy Commission staff has decided that it is in the public’s interest to allow for the protection of sensitive market information.

Interested parties should note that if public requests for information are made for Attachment 12 (or Attachments 12a and 12b), Energy Commission staff intend to notify the CPUC of the entity making the public information request.

Note: Levelized Cost of Electricity (LCOE) information may be designated as confidential, as well as other cost information in Attachment 12b. For those choosing to submit confidential cost information, Attachment 12 has been divided into two attachments: 12a Instructions for Benefits Calculations - PUBLIC and 12b   Instructions for Cost   Calculations – CONFIDENTIAL. Confidential information submitted under Attachment 12b will remain confidential for 3 years.

In addition to the Levelized Cost of Electricity information, Attachment 12b includes the following measurement areas:

1. Installed Capital Costs2. Operations and Maintenance Costs3. Decommissioning Costs4. Avoided Costs to Grid Electricity5. Avoided Waste Disposal Costs6. Revenue from Other Sources7. Payback Period and Rate of Return8. Size of Feedstock Base and Potential Market

The California Public Records Act allows for the non-disclosure of trade secrets (Gov. Code Section 6254(k); Evid. Code Section 1060.) and corporate financial records and proprietary information (Gov. Code Section 6254.15.) The confidential information contains proprietary cost information submitted to the California Energy Commission as part of a competitive bid process. The public disclosure of such information could provide competitors with access to information of economic value that is otherwise not publicly available, and it could result in market manipulation. Disclosure could also jeopardize the Applicant’s competitive advantage in the bid process, and disadvantage the Applicant in negotiations with vendors or suppliers by providing information they would not otherwise have. The information is not publicly available and cannot be duplicated by others without permission of the Applicant.

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The confidential information will be kept confidential for a period of 3 years, which represents sufficient time for the confidential information to lose their relevance to ongoing business. The confidential information may be publicly disclosed if the information is aggregated or anonymized.

Phase 2 applicants for Groups 2 and 3 using Attachment 12b Instructions for Costs Calculations – CONFIDENTIAL must clearly document that the information is confidential, for example by including “confidential” in the headers and/or footers or adding a “confidential” watermark to each page that contains confidential information.

Estimates of energy savings, GHG impacts or other measures must be calculated using the Cost and Benefit Calculations (Attachment 12 or Attachments 12a and 12b) and support the Measurement and Verification Plan described in the Project Narrative (Attachment 4). As noted in Attachment 12 (for submitting confidential data - in 12b), applicants should provide a copy of the completed Small-Scale Bioenergy LCOE Calculator as part of the application package. If not using LCOE calculator, clearly explain why it is not applicable and provide other cost measures and justifications for these measures.

The information on this form provides a basis for applicants to estimate the potential impact associated with successful completion of their proposals. Applicants must provide an estimate of the proposed project’s cost and benefits according to the measurement areas listed in this form. All calculations should be supported with a documented explanation and the citation of sources for assumed input values.

The applicant should review the Small-Scale Bioenergy LCOE model prepared for the CPUC as a part of the SB 1122 (Bioenergy Feed-in Tariff) proceeding.48 Applicants should enter values requested for the following measurement areas into the model in order to provide a levelized cost of electricity (LCOE) estimate. Applicants should provide a copy of the completed Small-Scale Bioenergy LCOE Calculator as part of the application package. If not using LCOE calculator, clearly explain why it is not applicable and provide other cost measures and justifications for these measures.

The Energy Commission recognizes that many applicants have limited staff resources and the stage of technical maturity limits the availability of firm data. Sources of uncertainty include:

Economies of scale to be achieved by wide-spread commercialization

Insufficient experience and data

First-of-a-kind costs and unknown trajectory of learning curves

To address these uncertainties, applicants are invited to provide a set of hypothetical estimates of key figures of merit such that ultimate performance goals are met. These values represent targets, which should be evaluated in comparison to available data of the technology’s past performance or the performance of competing technologies. As an example:

48 Information regarding the proceeding can be reviewed here: http://www.cpuc.ca.gov/sb_1122/

The model can be downloaded through this link:http://www.cpuc.ca.gov/NR/rdonlyres/69848D0B-9EA3-466B-8B8F-CE1E0EEF1894/0/PublicDRAFTLCOEModelCPUCSB1122.xlsx

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Currently, in lab-scale demonstrations, producing biofuel via Method X costs roughly $5/mBtu. The goal of this project is to show that the cost can be driven down to $3/mBtu through economies of scale. At this price, the technology can deliver an 8% rate of return to the owner over a 20 year timeframe while meeting applicable air quality standards.

The applicant will not only be evaluated on the magnitude of benefits and costs that would result if the goals of the project are achieved, but also the quality and merits of the analysis, as well as the likelihood that the targeted value or values can be achieved. The experience of the team member conducting the cost and benefit analysis will be evaluated in the technical scoring criteria.

13. Performance Data – Groups 2 and 3 only (Attachment 13)

Applicants must submit performance data to be evaluated on readiness for demonstration at the scale to be funded by this solicitation. Applicants will need to submit at least 500 hours of performance test data. A report is needed with analysis of the performance data proving that the project is demonstration ready. Applications that do not contain performance data and analysis supporting that the project is demonstration ready will not be evaluated.

Performance data should support the project purpose, such as emission control projects that provide test data showing the technology has reduced emissions at pilot or larger scale. Other examples of performance data include, but are not limited to, heat rate, capacity factor, and air pollution emissions. Other examples of performance data include, but are not limited to, information on feedstock quality, conversion efficiency, results of ramping capability tests on engine generator, heat rates, and capacity.

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.

TWO-PHASE AWARD PROCESSThis grant solicitation will follow a two-phase selection process.

Phase 1Applications submitted for Phase 1 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: Technical Abstract Screening Applications that pass Stage One will be submitted to the Evaluation Committee for review and screening based on the Technical Abstract Screening Criteria in Section E of this Part.

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Applicants must pass all of the technical abstract screening criteria. Those that pass will be eligible to submit a Phase 2 application.

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.

Notification of Passing Applications: A Notice of Passing Phase 1 Applications will be posted on the Energy Commission’s website at http://www.energy.ca.gov/contracts/epic.html under Solicitation Title “Development, Demonstration, and Deployment of Environmentally and Economically Sustainable Biomass-to-Energy Systems for the Forest and Food Waste Sectors (EPIC Bioenergy Solicitation) GFO-15-325. Passing Phase 1 proposals may submit a full proposal for Phase 2.

Phase 2Phase 2 applications must build upon the project submitted for Phase 1. The Evaluation Committee may consider the Phase 1 application in the Phase 2 evaluation. Please note that the Abstract submitted for Phase 1 does not replace the Project Narrative for Phase 2, and that Project Narrative must be a standalone document addressing all of the requirements described in this solicitation (see also Attachment 4 Project Narrative Form). If different projects are submitted for Phase 1 and Phase 2, the application will be rejected.

Applications submitted for Phase 2 will be evaluated in two stages:

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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 F 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 G of this Part.

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

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

Group 1 applications with match funding may receive bonus points. Group 2 and 3 applications with match funding above the 20 % minimum requirement

may receive bonus points. For all Groups, if a project is located in a disadvantaged community according to

CalEnviroScreen 2.049 or later versions, bonus points may be awarded. Group 1 projects located in HHZ50 may receive bonus points. Group 3 projects leveraging food recovery collection and distribution programs may

receive bonus points. Clarification Interviews: The Evaluation Committee may conduct optional in-person

or 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 Award Applications that receive a minimum score of 70.00 points for all criteria will be ranked according to their score.

The Energy Commission will post a Notice of Proposed Award (NOPA) that includes: (1) the total proposed funding amount; (2) the rank order of applicants; and (3) the amount of each proposed award. The Commission will post the NOPA at its headquarters in Sacramento and on its website, and will mail it to all parties 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.

The Energy Commission reserves the right to:o Allocate any additional funds to passing applications, in rank order; and

49 http://oehha.ca.gov/calenviroscreen/report/calenviroscreen-version-20 50 The link to the HHZ map is: http://egis.fire.ca.gov/TreeMortalityViewer/ Applicants must select boxes for Tier One and Tier Two High Hazard Zones in the Layer Visibility Legend to view the HHZs.

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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 require anamendment 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 if the following circumstances are discovered at any time during the application or agreement process:

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 literally comply or contains caveats that conflict with the solicitation, and the variation or deviation is material.

The application does not contain sufficient information to enable a useful evaluation to be conducted.

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.

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The applicant has received unsatisfactory 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 application is not submitted in the format specified in Part III, Sections A, B, and C of the solicitation.

The project end date extends past the anticipated agreement end date specified in the “Key Activities Schedule” in Part I.

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 Amendment

It 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 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 parties who 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 Application Applicants 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. Confidentiality Though the entire evaluation process from receipt of applications up to the posting of the NOPA is confidential, all submitted documents, except for confidential information submitted under Attachment 12b Instructions for Cost Calculations, will become public 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, except for confidential information submitted under Attachment 12b, as confidential.

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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 parties who requested the solicitation, without divulging the source of the request for clarification. The Energy Commission will not be responsible for failure to correct errors.

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

6. Disposition of Applicant’s Documents Upon the posting of the NOPA, all applications and related materials submitted in response to this solicitation will become property of the State and public 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.

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E. PHASE 1: APPLICATION AND TECHNICAL ABSTRACT SCREENING

Proposals that pass ALL Phase One Screening Criteria will be eligible to submit a full application in Phase 2.

PHASE 1 Application Screening Criteria1. 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.

Pass Fail

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

Pass Fail

3. 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 Project Abstract, Attachment 4).

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

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

Pass Fail

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

Pass Fail

6. 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

7. The application is complete, meaning that it: (1) includes all documents required in Part III, Section C; (2) includes all information required within each document; and (3) is signed where required by an authorized representative.

Pass Fail

PHASE 1 Technical Abstract Screening Criteria9. Abstract Project Summary (Attachment 4)a. Provides a description of the purpose, goals, objectives,

technological or scientific knowledge advancement, and innovation in the proposed project, including a description of how the project group requirements listed in Attachment 1 and described in Section II. B. 1-4 are met:

Development Stage Project Focus and Group Specific Qualifications (Evaluation

Committee will take into consideration information submitted as part of Attachment 11 (site and feedstock agreements), as applicable)

Generating Renewable Electricity Measurement and Verification Plan

b. Provides information documenting progress towards achieving compliance with the California Environmental Quality Act (CEQA) by addressing the areas in Section III.C.4, and, optionally, in

Pass Fail

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Section III.C.8 and (Attachment 8). If not applicable, provides explanation.

c. Describes the technical and implementation issues or barriers that must be addressed to accomplish the project’s objectives and ensure timely completion. Demonstrates a clear understanding of the issues and barriers;

d. Explains why the project is: (1) not commercially available to, or widely used by, the proposed end-user/market; (2) unique; (3) not duplicative of past projects funded by the Energy Commission’s RD&D program, utilities, or any other entities; and/or (4) needed to promote adoption by the market;

e. Describes industry, utility and other market support/need for the technology or research results;

f. Describes program, pathway and timeframe to commercialize proposed technology.

g. Describes knowledge base, technical expertise and staff necessary to complete the project (or explains plans to have this in place by Phase 2).

h. If the project is not located in IOU territory, applicant describes intentions of obtaining an IOU PPA (Groups 2 and 3), describes IOU ratepayer benefits, and shows that it will not be a self-generation project in POU territory.

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F. PHASE 2: APPLICATION SCREENING

SCREENING CRITERIAThe Application must pass ALL criteria to progress to Application Scoring.

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.

Pass Fail

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

Pass Fail

3. 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

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

Pass Fail

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

Pass Fail

6. 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

7. The application is complete, meaning that it: (1) includes all documents required in Part III, Section C; (2) includes all information required within each document; and (3) is signed where required by an authorized representative.

Pass Fail

8. The applicant and project meet the eligibility requirements described in Part II.

Pass Fail

9. The project does not extend past the anticipated agreement end date specified in the “Key Activities Schedule” in Part I.

Pass Fail

10. Required for TD&D projects only : The Application form and budget specify that the applicant will provide at least 20% of the requested Energy Commission funds in match funds.

Pass Fail

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G. PHASE TWO: APPLICATION SCORING

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

The minimum passing score for criteria 1−4 is 49.00 points and the total minimum passing score is 70.00 out of 100 points for criteria 1 to 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 8-11 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

unacceptable.

40-60% Inadequate The response addresses the criteria. There are one or more omissions, flaws, or defects or the

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

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

acceptable.

80% Good

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

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

90% Excellent

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

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

100% Exceptional

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

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

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SCORING CRITERIA

The Project Narrative (Attachment 4) must respond to each criterion below, unless otherwise indicated. Any estimates of energy savings or GHG impacts should be calculated as specified in the Instructions for Cost and Benefit Calculations (Attachment 12, or Attachments 12a and 12b), to the extent that the references apply to the proposed project.

Scoring Criteria Maximum Points

1. Technical Merit and Needa. Project Narrative builds upon the Phase 1 application and does not

deviate in any substantial way from what was proposed in Phase 1.

b. Provides a clear and concise description of the purpose, goals, objectives, technological or scientific knowledge advancement, and innovation in the proposed project, including a description of the project requirements listed in Attachment 1 and described in Section II. B. 1-4:

Development Stage

Project Focus and Group Specific Qualifications (Technical scorers will take into consideration information submitted as part of Attachment 11, as applicable)

Generating Renewable Electricity;

Measurement and Verification Plan (as applicable, must address costs and benefits see Attachment 12 or Attachments 12a and 12b)

c. Provides information documenting progress towards achieving compliance with the California Environmental Quality Act (CEQA) by addressing the areas in Section III.C.4, and Section III.C.8 and (Attachment 8). If not applicable, provides explanation.

d. Summarizes the current status of the relevant technology and/or scientific knowledge, and explains how the proposed project will advance, supplement, and/or replace current technology and/or scientific knowledge. Describes the project’s technology readiness level.

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

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

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

For GROUPS 2 and 3 - Section II.B. Project Requirements:

20

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h. Quality and level of development experience;i. Demonstrates strong likelihood of interconnection – for example,

demonstrates how the project meets the BioMAT’s minimum project viability criteria or relevant criteria, as applicable 51

j. Quality of cost and benefit calculations (Attachment 12 or Attachments 12a and 12b)

k. Demonstrates how the project meets the definition of community scale and is sized for 3 MW or less of generation (may also be addressed in Attachment 11);

l. Quality of performance data and analysis (Attachment 13);

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

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

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

c. Identifies and discusses factors critical for success, in addition to risks, barriers, and limitations. Provides a plan to address them.

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

e. Scope of Work and Project Schedule is complete, detailed and well written, as instructed in Attachments 6 and 6a. For Groups 2 and 3, pre-development activities are reasonable (typically no more than 12 months).

f. Describes details about the pathway and timeframe to commercialize proposed technology or strategy.

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3. Impacts and Benefits for California IOU Ratepayers, Technological Advancements, and Breakthroughs

a. Explains how the proposed project will benefit California Investor-Owned Utility (IOU) ratepayers with respect to the EPIC goals of greater reliability, lower costs, and/or increased safety).

20

51 Pursuant to CPUC Decisions D.12-05-035, D.13-01-041, and D.13-05-034, generators interested in participating in the FiT program must first meet the program’s minimum project viability criteria. 1) Bid fee: $2/kW bid fee; 2) Interconnection: System Impact Study, Phase I study, or passed the Fast Track screens or supplemental review; 3) Site Control: Attest to: 100% site control through (a) direct ownership, (b) lease, or (c) an option to lease or purchase that may be exercised upon contract execution; 4) Development Experience: Attest that: one member of the development team has (a) completed at least one project of similar technology and capacity or (b) begun construction of at least one other similar project; [Clarified per D.13-05-034] “A project less than 1 MW will be deemed to be similar capacity to a Project up to 1 MW. A project between 1 MW to 3 MW will be deemed to be a similar capacity to a Project up to 3 MW. For example, for a 3 MW Project, a project of similar capacity cannot be smaller than 1 MW.” 5) Online Date: 24 months with one 6-month extension for regulatory delays; 6) Note criteria 6 Seller Concentration was removed per D.13-05-034; 7) Commercialized Technology: Attest that: project is based on commercialized technology with at least two installations in the world.

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b. If the project is not located in IOU territory, applicant clearly describes intentions of obtaining an IOU PPA and the approach described seems likely to result in an IOU PPA (Groups 2 and 3) and has IOU ratepayer benefits, and is not a self-generation project in POU territory.

c. Applicant has one or more backup pilot/demonstration/deployment sites, as applicable.

d. Provides clear, plausible, and justifiable quantitative estimates of potential benefits for California IOU electricity ratepayers, including the following (as applicable): annual electricity and thermal savings (kilowatt-hours and therms), peak load reduction and/or shifting, flexible generation, energy cost reductions, integration/reliability services, reduced risk of forest fires, reductions in the amount of biomass that goes to landfills, GHG emission reductions; air emission reductions (e.g., oxides of nitrogen), net local air quality benefits; water use and/or cost reductions; and watershed benefits.

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

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

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

h. Provides a cost-benefit analysis that compares project costs to anticipated benefits. Explains how costs and benefits will be calculated and quantified, and identifies any underlying assumptions (Attachment 12 or Attachments 12a and 12b ; required for Groups 2 and 3).

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

Includes an organizational chart that illustrates the structure.

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

c. Summarizes the qualifications, experience, capabilities, and credentials of the key team members (include this information in Attachment 5, Project Team Form and Attachment 9).

d. Explains how the various tasks will be managed and coordinated, and how the project manager’s technical expertise will support the effective management and coordination of all projects in the application.

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

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

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

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

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

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

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

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

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

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

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

k. Quality of support and/or commitment letters (for site control, feedstock agreement, match funding, project partners, stakeholder support, and community-scale support). Letters indicate a strong level of support or commitment for the project and, as applicable, site control and match funding include backup plans if proposed site and/or match becomes unavailable.

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

5. Budget and Cost-Effectivenessa. Justifies the reasonableness of the requested funds relative to the project

goals, objectives, and tasks.

b. Justifies the reasonableness of costs for direct labor, non-labor (e.g., indirect overhead, general and administrative costs, and subcontractor profit), and operating expenses by task.

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

d. Explains how the applicant will maximize funds for the technical tasks and minimize expenditure of funds for program administration and overhead.

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

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

Percentage of EPIC funds spent in CA(derived from budget attachment B-2)

Percentage of Possible Points

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

15

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

The score for this criterion will derive from the budget forms, which compares the total direct labor and fringe benefits costs to the total loaded rate (Total Direct Labor + Total Fringe)/ (Total Direct Labor + Total Fringe + Total Indirect + Total Profit). This ratio, as a percentage, is multiplied by the possible points for this criterion and rounded two decimal places.

5

Total Possible Points(Minimum Passing Score is 70) 100

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

8. Match Funding (Optional for Group 1; Optional for Groups 2 and 3 with match over the required 20 percent)

Each match funding contributor must submit a match funding commitment letter that meets the requirements of Attachment 11. Failure to meet these requirements will disqualify the proposal from consideration for match funding points.

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). Failure to meet this requirement will disqualify the proposal from consideration for match funding points.

10

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5 points for this criterion will be awarded based on the percentage of match funds relative to the EPIC funds requested. This ratio will be multiplied by 5 to yield the points, and rounded to the nearest whole number.For example: If requested EPIC funds are $1,000,000 and match funds are $500,000, the match funding ratio is 0.50. The proposal will be awarded 3 points (5 x 0.50 = 2.5, rounded to the nearest whole number = 3).

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

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

9. Disadvantaged Communities (Optional)Projects with all test or demonstration sites located in disadvantaged communities and that justify how the project will benefit the disadvantaged community may receive additional points.

A disadvantaged community is identified by census tract and represents the 25 percent highest scoring tracts in CalEnviroScreen 2.0 or later versions. Please use the SB 535 interactive maps to identify disadvantaged communities.52

5

10. High Hazard Zone Location (Group 1 ONLY, Optional)Group 1 projects that demonstrate that they are located in High Hazard Zones, as defined by CalFire, may receive up to 5 points.

5

11. Leveraging of food recovery collection and distribution programs (Group 3 ONLY, Optional)

Group 3 projects that adequately demonstrate how the project leverages food recovery collection and distribution programs before using the feedstock for bioenergy purposes may receive additional points. The approach taken is reasonable and effective in ensuring that rescued food is used to feed people prior to recovering food-waste for electricity generation.

5

Scoring Criteria Maximum Points

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Possible Bonus PointsGroup 1 - Possible Bonus Points for criteria 8, 9 and 10 20

Group 2 – Possible Bonus Points for criteria 8 and 9 15

Group 3 – Possible Bonus Points for criteria 8, 9, and 11 20

Total Possible Points by Group:Group 1 Total Possible Points for criteria 1-10 120

Group 2 Total Possible Points for criteria 1-9 115

Group 3 Total Possible Points for criteria 1-9 and 11 120

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