GRANT FUNDING OPPORTUNITY

Solar +: Taking the Next Steps to Enable Solar as a Distribution Asset

GFO-16-309http://www.energy.ca.gov/contracts/index.html

State of CaliforniaCalifornia Energy Commission

November 2016

January 2017

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

A. PURPOSE OF SOLICITATION....................................................................................................................................1B. KEY WORDS/TERMS.............................................................................................................................................3C. APPLICANTS’ ADMONISHMENT...............................................................................................................................5D. ADDITIONAL REQUIREMENTS..................................................................................................................................5E. BACKGROUND.....................................................................................................................................................6F. FUNDING.........................................................................................................................................................13G. KEY ACTIVITIES SCHEDULE...................................................................................................................................16H. NOTICE OF PRE-APPLICATION WORKSHOP..............................................................................................................17I. QUESTIONS......................................................................................................................................................18

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

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

III. APPLICATION ORGANIZATION AND SUBMISSION INSTRUCTIONS..............................................................33

A. APPLICATION FORMAT, PAGE LIMITS, AND NUMBER OF COPIES.................................................................................33B. PREFERRED METHOD FOR DELIVERY......................................................................................................................34C. HARD COPY DELIVERY........................................................................................................................................34D. APPLICATION ORGANIZATION AND CONTENT...........................................................................................................35

IV. EVALUATION AND AWARD PROCESS......................................................................................................... 40

A. APPLICATION EVALUATION..................................................................................................................................40B. RANKING, NOTICE OF PROPOSED AWARD, AND AGREEMENT DEVELOPMENT................................................................40C. GROUNDS TO REJECT AN APPLICATION OR CANCEL AN AWARD..................................................................................41D. MISCELLANEOUS................................................................................................................................................42E. STAGE ONE: APPLICATION SCREENING..................................................................................................................43F. STAGE TWO: APPLICATION SCORING....................................................................................................................45

November 2016 January 2017 Page i GFO-16-309

ATTACHMENTS

Attachment Number Title

1 Application Form (requires signature)

2 Executive Summary Form

3 Fact Sheet Template

4 Project Narrative Form

5 Project Team Form

6 Scope of Work Template

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

7 Budget Forms (Excel spreadsheet)

8 CEQA Compliance Form

9 Reference and Work Product Form

10 Contact List Template

11 Commitment and Support Letter Form (letters require signature)

12 References for Calculating Energy End-Use, Electricity Demand, and GHG Emissions

November 2016 January 2017 Page ii GFO-16-309

I. Introduction

A. PURPOSE OF SOLICITATION The purpose of this solicitation is to advance the deployment and grid integration of distributed solar resources through the use of energy storage, smart inverters, and advanced forecasting and modeling techniques. To this end, the solicitation will fund applied research and development, and technology demonstration and deployment projects that meet the following objectives from the 2015-2017 EPIC Triennial Investment Plan:

S3 – Develop Innovative Solutions to Increase the Market Penetration of Distributed Renewable and Advanced Generation;

S4 – Improve Power Plant Performance, Reduce Cost, and Accelerate Market Acceptance of Existing and Emerging Utility-Scale Renewable Energy Generation Systems;

S6 – Advance the Use of Smart Inverters as a Tool to Manage Areas with High Penetrations of PV; and

S15 – Demonstrate Advanced Energy Storage Interconnection Systems to Lower Costs, Facilitate Market and Improve Grid Reliability

In recent years, distributed photovoltaic (PV) systems have been widely deployed across the California grid, and this trend is only expected to accelerate in order to meet the state’s renewable energy goals.1 A vast majority of these deployed systems have been installed as individual, grid-connected systems that simply provide energy when the sun is shining, but require support from operating reserves and backup power due to their uncontrolled, intermittent generation in order to meet grid demand.2 As more individual PV systems become integrated with the grid, the risk of oversupply during the day increases and a larger ramp is necessary to satisfy evening demand. Incorporating energy storage into PV systems can mitigate this issue by shifting oversupply to meet evening peak demand and effectively leveling out the net-load “duck curve.”

Initial studies have suggested that the operational value of distributed PV can be dramatically increased by improved forecasting as well as by the inclusion of energy storage,3 advanced inverters,4 and other enabling technologies at or near the site of generation. Specifically the module-level integration of solar + storage offers a large potential to reduce conversion losses,5 increase efficiencies, and reduce costs6 when compared to standalone solar and standalone energy storage. Furthermore, strategic installation of distributed PV and energy storage with 1 Senate Bill 3502 California Independent Service Operator (CA-ISO), “What the duck curve tells us about managing a green grid,” available at http://www.caiso.com/Documents/FlexibleResourcesHelpRenewables_FastFacts.pdf3 Clean Energy Group, “Closing the California Clean Energy Divide,” available at http://www.cleanegroup.org/wp-content/uploads/Closing-the-California-Clean-Energy-Divide.pdf4 Clean Coalition, “Advanced Inverters for Distributed PV: Latent Opportunities for Localized Reactive Power Compensation,” available at http://www.clean-coalition.org/site/wp-content/uploads/2013/10/CC_PV_AI_Paper_Final_Draft_v2.5_05_13_2013_AK.pdf 5 Reduced conversion losses would be due to a reduced number of AC/DC conversions by the solar + storage system sharing a single inverter, as opposed to solar and storage each having a separate inverter.

November 2016 January 2017 Page 1 GFO-16-309

other Distributed Energy Resources (DER) at specific locations on the distribution grid can reduce the need for other costly system upgrades, which translates to a savings for utilities and electricity customers alike.7

Projects must fall within one of the following project groups:

Group 1: Pilot Demonstration of Advanced Solar + Storage Technologies for Community-Scale Applications;

Group 2: Pilot Demonstration of Advanced Solar + Storage Technologies for Building-Scale Applications;

Group 3: Enhanced Modeling Tools to Maximize Solar + Storage Benefits;

Group 4: Advanced Smart Inverter Capabilities to Support High-Penetration Solar;

Group 5: Holistic Forecasting to Support High-Penetration Solar Grid Operations; and

Group 6: Energy Storage Deployment to Facilitate Storage Interconnection and Enable Integration of High-Penetration Distributed Solar.

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

6 Woodlawn Associates, “Energy Storage 301: Solar + Storage Economics,” available at https://woodlawnassociates.com/energy-storage-301/7 Clean Coalition, “Locational Benefits of Distributed Generation,” available at http://www.clean-coalition.org/site/wp-content/uploads/2013/11/Locational-Benefits-Brief-08_tk-6-Nov-2013.pdf

November 2016 January 2017 Page 2 GFO-16-309

B. KEY WORDS/TERMSWord/Term DefinitionApplicant The entity that submits an application to this solicitation

Application An applicant’s written response to this solicitation

CAISO California Independent System Operator, the grid operator that manages 80% of California’s electric grid, including the service areas of the state’s three investor-owned utilities

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

CAO Commission Agreement Officer

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

CPUC California Public Utilities Commission, the state regulatory agency that oversees privately owned electric utilities

Days Days refers to calendar days

DER Distributed Energy Resource, distributed renewable generation resources, energy efficiency, energy storage, electric vehicles, and demand response technologies

Disadvantaged Community

These are communities defined as areas representing census tracts scoring in the top 25 % in CalEnviroScreen 2.0. (http://oehha.ca.gov/ej/ces2.html)

DRP Distribution Resource Plan, a plan drafted to identify optimal locations for deployment of distributed resources in an IOU service territory

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

Energy Commission or Commission

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

ICA Integration Capacity Analysis, to specify how much DER hosting capacity may be available on the IOUs’ distribution networks

IDER Integrated Distributed Energy Resources, a CPUC proceeding directing utilities to “integrate customer demand-side programs, such as energy efficiency, self-generation, advanced metering, and demand response, in a coherent and efficient manner."

IOU Investor-owned utility, an electrical corporation as defined in in California Public Utilities Code section 218. For purposes of this

November 2016 January 2017 Page 3 GFO-16-309

Word/Term DefinitionEPIC solicitation, it includes Pacific Gas and Electric Co., San Diego Gas and Electric Co., and Southern California Edison Co.

LNBA Locational Net Benefits Analysis, to specify the net benefit that DERs can provide in a given location in an IOU’s service territory

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

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

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

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

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

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

PV Photovoltaic

Recipient An entity receiving an award under this solicitation

RPS Renewables Portfolio Standard, a CPUC proceeding implementing the program requiring utilities to procure 50 percent of their electricity portfolios from renewable resources by 2030.

SIWG Smart Inverter Working Group, a joint effort between the CPUC and Energy Commission to develop recommendations to the CPUC for the technical steps to optimize inverter‐based DER to support distribution system operations

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

State State of California

November 2016 January 2017 Page 4 GFO-16-309

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

D. ADDITIONAL REQUIREMENTS

1. Time is of the essence. Funds available under this solicitation have encumbrance deadlines as early as June 30, 2017.  This means that the Energy Commission must approve proposed awards at a business meeting (usually held monthly) prior to June 30, 2017, 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 applications in a manner that minimizes the time required for the Commission to comply with CEQA and provide all CEQA-related information to the Commission in a timely manner such that the Commission is able to complete its review in time for it to meet its encumbrance deadline.

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

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

November 2016 January 2017 Page 5 GFO-16-309

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

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

Example 4: If the proposed project clearly falls under a statutory or categorical exemption, or is a project for which another state agency or local jurisdiction has already adopted a CEQA finding that the project will cause no significant effect on the environment, the project will likely have greater success in attaining rapid completion of CEQA requirements.

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

E. BACKGROUND

1. Electric Program Investment Charge (EPIC) ProgramThis solicitation will award projects funded by the EPIC, an electricity ratepayer surcharge established by the California Public Utilities Commission (CPUC) in December 2011.8 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.9 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.10 The EPIC program is administered by the California Energy Commission and the IOUs.

2.

8 See CPUC “Phase 1” Decision 11-12-035, December 15, 2011, http://docs.cpuc.ca.gov/PublishedDocs/WORD_PDF/FINAL_DECISION/156050.PDF.9 See CPUC “Phase 2” Decision 12-05-037, May 24, 2012, http://docs.cpuc.ca.gov/PublishedDocs/WORD_PDF/FINAL_DECISION/167664.PDF.10 California Public Resources Code, Section 25711.5(a), http://www.leginfo.ca.gov/cgi-bin/displaycode?section=prc&group=25001-26000&file=25710-25712.

November 2016 January 2017 Page 6 GFO-16-309

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

Applied research and development;

Technology demonstration and deployment; and

Market facilitation

In addition, projects must fall within one of the general focus areas (“strategic objectives”) identified in the Energy Commission’s EPIC Investment Plans11 12 and within one or more specific focus areas (“funding initiatives”) identified in the plan. This solicitation targets the following program areas, strategic objectives, and funding initiatives:

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 Generationo Funding Initiative S3.2: Develop Integrated and Hybrid Photovoltaic

Technologies and Strategies to Reduce Costs and Advance Zero-Net Energy Buildings

Program Area: Applied Research and Development Strategic Objective S4: Improve Power Plant Performance, Reduce Cost, and

Accelerate Market Acceptance of Existing and Emerging Utility-Scale Renewable Energy Generation Systems

o Funding Initiative S4.2: Develop Innovative Tools and Strategies to Increase Predictability and Reliability of Wind and Solar Generation

Program Area: Applied Research and Development Strategic Objective S6: Advance the Use of Smart Inverters as a Tool to Manage

Areas with High Penetrations of PVo Funding Initiative S6.1: Develop Smart Inverter Capabilities to Improve Grid

Operations Program Area: Technology Demonstration and Deployment Strategic Objective S15: Demonstrate Advanced Energy Storage Interconnection

Systems to Lower Costs, Facilitate Market and Improve Grid ReliabilityFunding Initiative S15.1: Demonstrate Advanced Energy Storage Interconnection Technologies and Systems in Transmission, Distribution, and Customer-Side Applications to Transition to the Commercial Market

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

Laws/Regulations

11 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. 12 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.

November 2016 January 2017 Page 7 GFO-16-309

Assembly Bill (AB) 3213 - Global Warming Solutions Act of 2006 AB 32 created a comprehensive program to reduce greenhouse gas (GHG) emissions in California. GHG reduction strategies include a reduction mandate of 1990 levels by 2020 and a cap-and-trade program. AB 32 also required the California Air Resources Board (ARB) to develop a Scoping Plan that describes the approach California will take to reduce GHGs. ARB must update the plan every five years.

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

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

AB 327 (Statutes of 2013)AB 327 required electrical corporations to submit to the CPUC a distribution resources plan proposal to identify optimal locations for the deployment of distributed energy resources.

Additional information:

http://www.cpuc.ca.gov/general.aspx?id=5071

Applicable Law: California Public Utilities Code §§ 769 et. seq. (https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201320140AB327)

AB 693 – Multifamily Affordable Housing Solar Roofs Program (Statutes of 2015)AB 693 authorizes a third party administrator, selected by the CPUC, to administer clean energy and energy efficiency projects to be installed on qualified multifamily affordable housing properties. Any projects installed pursuant to the program must be primarily used to offset electricity usage by low-income tenants. The program will operate from 2017 through 2030, with a target to install a total generating capacity of 300 MW on qualified properties. The program will have an annual budget of $100,000,000 or 10% of available funds from greenhouse gas allowance revenues, whichever is less.

Applicable Law: California Public Utilities Code §§ 748.5 and 2870 (https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201520160AB693)

AB 1637 (Statutes of 2016)AB 1637 authorizes an increase of the CPUC’s Self-Generation Incentive Program capacity cap by 500 MW and an increase in its funding.

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

Applicable Law: California Public Utilities Code § 379.6 and §2827.10 (https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201520160AB1637)

AB 2868 (Statutes of 2016)

AB 2868 requires the IOUs to develop programs and investments in distributed energy storage systems up to a total of 500 MW. There is a cap of 25 percent on behind-the-meter systems.

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

Applicable Law: California Public Utilities Code § 2838 (https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201520160AB2868)

13 AB 32 (Statutes of 2006, chapter 488)

November 2016 January 2017 Page 8 GFO-16-309

Senate Bill (SB) X1-214 - Renewables Portfolio Standard,SB X1-2 expanded California’s Renewables Portfolio Standard (RPS) goals and requires retail sellers of electricity and local publicly owned electric utilities to increase their procurement of eligible renewable energy resources to 20 % by the end of 2013, 25 % by the end of 2016, and 33 % by the end of 2020.

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

AB 251415 - Energy Storage Systems, AB 2514 required the CPUC to determine targets for the procurement of viable, cost-effective energy storage systems by load-serving entities. The CPUC adopted the procurement targets in Decision 13-10-040, issued on October 17, 2013 (see the summary of Decision 13-10-040 in the “Policies/Plans” section below).

Additional information: http://www.cpuc.ca.gov/general.aspx?id=3462 Applicable Law: California Public Utilities Code §§ 2835 et. seq., and § 9620 (http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=200920100AB2514)

SB 35016 Clean Energy and Pollution Reduction Act of 2015, SB 350 does the following: 1) expands California’s RPS goals and requires retail sellers of electricity and local publicly owned electricity to increase their procurement of eligible renewable energy resources to 40 % by the end of 2024, 45 % by the end of 2027, and 50 % by the end of 2030; 2) requires the Energy Commission to establish annual targets for statewide energy efficiency savings in electricity and natural gas final end uses of retail customers by January 1, 2030; and 3) provide for transformation of the Independent System Operator into a regional organization.

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

California Energy Code

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

Additional information: http://www.energy.ca.gov/title24/ Applicable Law: California Code of Regulations, Title 24, Part 6 and associated administrative regulations in Part 1

Policies/Plans

14 SBX 1-2 (Statutes of 2011, first extraordinary session, chapter 1)15 AB 2514 (Statutes of 2010, chapter 469)16 SB 350 (Statutes of 2015, chapter 547

November 2016 January 2017 Page 9 GFO-16-309

CPUC’s Order Instituting Rulemaking on the CPUC's own motion to improve distribution level interconnection rules and regulations for certain classes of electric generators and electric storage resources (R. 11-09-011) (2011)Electric Rule 21 is a tariff that describes the interconnection, operating and metering requirements for generation facilities to be connected to a utility’s distribution system, over which the CPUC has jurisdiction. In this rulemaking, the CPUC will review, and, if necessary, revise, Rule 21 to ensure that the interconnection process is timely, non-discriminatory, cost-effective, and transparent. The CPUC also seeks to revise Rule 21 to incorporate processes appropriate for new technologies, such as energy storage.

This proceeding was closed in May 2016.

Additional information: http://www.cpuc.ca.gov/General.aspx?id=3962 and http://www.cpuc.ca.gov/General.aspx?id=3968

CPUC’s Order Instituting Rulemaking Regarding Policies, Procedures and Rules for Development of Distribution Resources Plans Pursuant to Public Utilities Code Section 769.   (R. 14-08-013) (2013)The purpose of this rulemaking is to establish policies, procedures, and rules to guide California IOUs in developing their Distributed Resource Plans. Under this rulemaking, “distributed resources” includes distributed renewable generation resources, energy efficiency, energy storage, electric vehicles, and demand response technologies.

Additional information: http://www.cpuc.ca.gov/PUC/energy/drp/

CPUC’s Order Instituting Rulemaking to Create a Consistent Regulatory Framework for the Guidance, Planning, and Evaluation of Integrated Demand-Side Resource Programs (R. 14-10-003) (2014)This rulemaking considers the development and adoption of a regulatory framework to provide policy consistency for the direction and review of demand-side resource programs. It is intended to be a unified mechanism to authorize and direct the CPUC-regulated electric and gas utilities to achieve demand reduction and load shaping using integrated demand-side management resources.

Additional information: http://www.cpuc.ca.gov/General.aspx?id=10710

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

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

November 2016 January 2017 Page 10 GFO-16-309

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 Code § 25300 et seq.

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

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

CPUC Proceeding R.12-11-005 – Self-Generation Incentive Program (SGIP)The CPUC's SGIP provides incentives to support existing, new, and emerging distributed energy resources. The SGIP provides rebates for qualifying distributed energy systems installed on the customer's side of the utility meter. Qualifying technologies include wind turbines, waste heat to power technologies, pressure reduction turbines, internal combustion engines, microturbines, gas turbines, fuel cells, and advanced energy storage systems.

Decision 16-06-055 allocated 75 percent of SGIP funds to energy storage, with 15 percent of the energy storage funds carved out for residential projects.

Additional information: http://www.cpuc.ca.gov/sgip/; http://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M163/K928/163928075.PDF; and, http://www.cpuc.ca.gov/general.aspx?id=3796

Demand Response Auction Mechanism (DRAM)The DRAM is a two-year pilot in which the three IOUs will solicit bids from DERs, which may include onsite renewable generation or energy storage, to participate in CAISO markets. DERs aggregated to a minimum of 100kW may participate in CAISO markets. At least 20 percent of the total procured DRAM bids by each IOU must be residential (in MW terms). During the two-year pilot, the CPUC will gain CAISO market experience and anticipates reducing costs and complexities of aggregating DER for market participation. The contracts selected by the IOUs in the DRAM would also be submitted to the CPUC for approval.

Additional information: http://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M143/K552/143552239.pdf; http://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M153/K436/153436367.pdf; https://www.pge.com/en_US/business/save-energy-money/energy-management-programs/demand-response-programs/2017-demand-response/2017-demand-response-auction-mechanism.page?WT.mc_id=Vanity_dram; https://www.sce.com/wps/portal/home/procurement/solicitation/dram/!ut/p/b0/04_Sj9CPykssy0xPLMnMz0vMAfGjzOK9PF0cDd1NjDz9Q7yNDBxDgwJ8LNxMDLw9zfULsh0VAcNZk2w!/; and, http://www.sdge.com/2017-demand-response-auction-mechanism-dram

November 2016 January 2017 Page 11 GFO-16-309

AB 2188 – Streamlined Solar PermittingAB 2188 requires the state’s cities and counties to adopt streamlined solar permitting processes by September 30, 2015. Adopting a modernized and standardized permitting process for installations of small-scale solar distributed generation technology on residential rooftops will increase the deployment of solar distributed generation, help to expand access to lower income households, provide solar customers greater installation ease, improve the state’s ability to reach its clean energy goals, and generate much needed jobs in the state, all while maintaining safety standards.

Additional information: http://www.opr.ca.gov/s_renewableenergy.php

California Solar Initiative (CSI) Research, Development, Demonstration, and Deployment (RDD&D) Program (2006)The goal of the CSI RDD&D Program is to help build a sustainable and self-supporting industry for customer-sited solar in California. To achieve this, the legislature authorized the CPUC to allocate $50 million of the CSI budget to focus on reducing technology costs and increasing system performance, focusing on issues that directly benefit California, filling knowledge gaps to enable wide-scale deployment of distributed solar, and supporting the integration of distributed power into the grid. The Program has a budget of $50 million and runs through 2016.

Additional information: http://www.calsolarresearch.org/

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

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

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

Executive Order B-30-15

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

Reference Documents

Refer to the documents below for information about activities associated with advancing the deployment and grid integration of distributed solar resources through the use of energy storage, smart inverters, and advanced forecasting and modeling techniques.

“Closing the California Clean Energy Divide: Reducing Electric Bills in Affordable Multifamily Rental Housing with Solar+Storage,” http://www.cleanegroup.org/ceg-resources/resource/closing-the-california-clean-energy-divide/

November 2016 January 2017 Page 12 GFO-16-309

“Community-Scale Solar: Why Developers and Buyers Should Focus on this High-Potential Market Segment,” http://www.rmi.org/Content/Files/RMI-Shine-Report-CommunityScaleSolarMarketPotential-201603-Final.pdf

“Breaking Ground: New Models that Deliver Energy Solutions to Low-Income Customers,” http://www.rmi.org/Content/Files/RMI-LEAP-v12.pdf

“Recent Trends in Variable Generation Forecasting and Its Value to the Power System,” http://ieeexplore.ieee.org/stamp/stamp.jsp?arnumber=6996049

Smart Inverter Working Group, http://www.energy.ca.gov/electricity_analysis/rule21/ and http://www.cpuc.ca.gov/General.aspx?id=4154

F. FUNDING

1. Amount Available and Minimum/ Maximum Funding AmountsThere is up to $26,000,000 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

Minimum award amount

Maximum award amount

Minimum match funding amount

Group 1: Pilot Demonstration of Advanced Solar + Storage Technologies for Community-Scale Applications

$6,000,000 $2,000,000 $3,000,000 $0

Group 2: Pilot Demonstration of Advanced Solar + Storage Technologies for Building-Scale Applications

$3,500,000

$1,000,000

$1,500,000

Group 3: Enhanced Modeling Tools to Maximize Solar + Storage Benefits

$1,000,000 $1,000,000

Group 4: Advanced Smart Inverter Capabilities to

$6,000,000 $2,000,000 $3,000,000

November 2016 January 2017 Page 13 GFO-16-309

Support High-Penetration Solar

Group 5: Holistic Forecasting to Support High-Penetration Solar Grid Operations

$1,500,000 $500,000 $750,000

Group 6: Energy Storage Deployment to Facilitate Storage Interconnection and Enable Integration of High-Penetration Distributed Solar

$8,000,000 $1,500,000 $2,000,000 20% of requested project funds

2. Match Funding RequirementFor applicants to Group 6, match funding is required in the amount of at least 20% of the requested project funds. Group 6 applicants that provide more than this amount will receive additional points during the scoring phase (See Part IV).

For applicants to Groups 1-5, match funding is not required for this solicitation. However, Groups 1-5 applications that include match funding will receive additional points during the scoring phase.

For applicants to Groups 1-6, the Energy Commission will provide no more than 50% of the cost of equipment purchases.

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

“Match funds” do not include: Energy Commission awards, 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.

November 2016 January 2017 Page 14 GFO-16-309

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

o “Equipment” means an item with a unit cost of at least $5,000 and a useful life of at least one year. Equipment means any products, objects, machinery, apparatus, implements or tools purchased, used or constructed within the Project, including those products, objects, machinery, apparatus, implements or tools from which over thirty percent (30%) of the equipment is composed of Materials purchased for the Project. For applicants to Groups 1-6, the Energy Commission will provide no more than 50% of the cost of equipment purchases. Purchasing equipment with match funding is encouraged because there are no disposition requirements at the end of the agreement for such equipment.  Typically, grant recipients may continue to use equipment purchased with Energy Commission funds if the use is consistent with the intent of the original agreement.

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

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

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

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

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

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

Match funds must be spent only during the agreement term, 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

November 2016 January 2017 Page 15 GFO-16-309

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

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

amounts described in this section. 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 TIME17

Solicitation Release 11/22/2016Pre-Application Workshop 12/7/2016 10:00 amDeadline for Written Questions18 12/9/2016 5:00 p.m.Anticipated Distribution of Questions and Answers Week of 1/2/2017

Deadline to Submit Applications 1/20/20171/31/2017

5:00 p.m.

Anticipated Notice of Proposed Award Posting Date 3/6/2017Anticipated Energy Commission Business Meeting Date 6/14/2017Anticipated Agreement Start Date 8/7/2017Anticipated Agreement End Date 3/31/2020

H. PRE-APPLICATION WORKSHOP

Energy Commission staff will hold one Pre-Application Workshop to discuss the solicitation with potential applicants. Participation is optional but encouraged. Applicants may attend the workshop in-person, via the internet (WebEx, see instructions below), or via conference call on 17 Pacific Standard Time or Pacific Daylight Time, whichever is being observed.18 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 I for additional information.

November 2016 January 2017 Page 16 GFO-16-309

the date and at the time and location listed below. Please call (916) 654-4381 or refer to the Energy Commission's website at www.energy.ca.gov/contracts/index.html to confirm the date and time.

Date and time: December 7, 2016 at 10:00 am

Location: California Energy Commission1516 9th StreetSacramento, CA 95814Art Rosenfeld Hearing Room

Wheelchair Accessible

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

number and password below:

Meeting Number: 922 034 269Meeting Password: meeting@10Topic: Pre-Application Workshop for Solar +: Taking the Next Steps to Enable Solar as a Distribution Asset

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. You may also contact Alex Venegas at (916) 327-1717.

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

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

If you have a disability and require assistance to participate, please contact Lou Quiroz at lquiroz@energy.ca.gov or (916) 654-5146 at least five days in advance,

November 2016 January 2017 Page 17 GFO-16-309

I. QUESTIONS

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

Janna Franks, Commission Agreement OfficerCalifornia Energy Commission

1516 Ninth Street, MS-18Sacramento, California 95814

Telephone: (916) 654-4921FAX: (916) 654-4423

E-mail: janna.franks@energy.ca.gov

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

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

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

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

November 2016 January 2017 Page 18 GFO-16-309

II. Eligibility RequirementsA. APPLICANT REQUIREMENTS

1. EligibilityThis solicitation is open to all public and private entities and individuals with the exception of local publicly owned electric utilities.19 In accordance with CPUC Decision 12-05-037, funds administered by the Energy Commission may not be used for any purposes associated with local publicly owned electric utility activities.

2. Terms and ConditionsEach grant agreement resulting from this solicitation will include terms and conditions that set forth the recipient’s rights and responsibilities. By signing the Application Form (Attachment 1), each applicant agrees to enter into an agreement with the Energy Commission to conduct the proposed project according to the terms and conditions that correspond to its organization, without negotiation: (1) University of California and California State University terms and conditions; (2) U.S. Department of Energy terms and conditions; or (3) standard terms and conditions. All terms and conditions are located at http://www.energy.ca.gov/research/contractors.html. Failure to agree to the terms and conditions by taking actions such as failing to sign the Application Form or indicating that acceptance is based on modification of the terms will result in rejection of the application. Applicants must read the terms and conditions carefully. The Energy Commission reserves the right to modify the terms and conditions prior to executing grant agreements.

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

B. PROJECT REQUIREMENTS

1. Applied Research and Development StageProjects in Groups 1-5 must fall within the “applied research and development” stage, which includes activities that support pre-commercial technologies and approaches that are designed to solve specific problems in the 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.20 Applied research and development activities include early, pilot-scale

19 A local publicly owned electric utility is an entity as defined in California Public Utilities Code section 224.3.

November 2016 January 2017 Page 19 GFO-16-309

testing activities that are necessary to demonstrate the feasibility of pre-commercial technologies.

2. Technology Demonstration and Deployment Stage Projects in Group 6 must fall within the “technology demonstration and deployment” stage, which involves the installation and operation of pre-commercial technologies or strategies at a scale sufficiently large and in conditions sufficiently reflective of anticipated actual operating environments to enable appraisal of operational and performance characteristics, and of financial risks.21

3. Project Focusa. Group 1: Pilot Demonstration of Advanced Solar + Storage Technologies

for Community-Scale ApplicationsCommunity-scale solar installations have been shown to be economically advantageous compared to individual rooftop installations due to their ability to leverage economies of scale and bulk equipment purchase. Community-scale solar installations integrated with storage may minimize the need for distribution grid upgrades and ancillary services while providing low-cost energy to local residents, although the specific costs and benefits of community-scale solar + storage technology configurations need further demonstration and verification. There is also a need to develop standardized, replicable solutions that provide both solar and storage to maximize the cost savings and value streams to community-scale customer groups.

For purposes of this solicitation, community-scale is defined as a project located on the distribution system, adjacent to or near the point of consumption, and connected to the grid either behind or in front of the customer meter. The total generation for each project mustshould be less than 5 MW and greater than 100kW in size to be eligible for this project group. Target communities include residential, small commercial, and mixed-use communities and mustshould include at least ten individual buildings (such as single-family residences) or one multi-tenant building (such as multi-family housing or office park). Industrial or agricultural projects are not eligible under this project group.

This project group is focused on pilot demonstrations22 of innovative solar + storage technologies and configurations at the community-scale to identify and exploit synergies between solar and stationary energy storage, reduce overall costs, maximize value to system owners and customers, and verify locational grid benefits of community-scale solar integrated with stationary energy storage, other DERs, and enabling technologies. The goal of projects in this project group is to create a standardized solar + storage solution for communities to decrease soft costs and enhance the value of distributed PV to utility customers and the grid.

Eligible Group 1 projects mustshould include the following features, at a minimum:

20 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.21 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.22 A pilot demonstration is a small-scale demonstration of pre-commercial technologies, typically at a single site.

November 2016 January 2017 Page 20 GFO-16-309

Clear description of how the proposed technology solution offers competitive advantages over commercially available market technologies.

Development of advanced solar + storage technology, integrated at the solar array level, and targeted for applications at the community-scale. Examples of advanced technologies are:o Integrated solar + storage with a single combined smart inverter.o Hybrid solar PV/thermal generation technologies with a high-efficiency

energy storage component.o High-efficiency panels with extended lifetimes beyond 30 years coupled

with an advanced battery energy storage system. The integrated solar + storage technology mustshould meet all of the following

performance measures, at a minimum:o 10% reduction in costs versus a standalone solar system plus a

standalone energy storage system.o 10% greater energy generated over the course of an average day

compared to standalone solar plus standalone energy storage.o The ability to smooth solar intermittency at the point of generation,

resulting in a reduction in standard deviation of the system output by greater than 10% compared to traditional PV.

o An increase in overall system capacity factor by 10% compared to traditional fixed-tilt PV systems.

o The ability to provide energy later into the evening than traditional fixed-tilt PV systems.

o The ability to provide distribution grid services, as needed, with an examination of potential compensation strategies for providing these services.

o Solar module efficiency of at least 21%.o Storage round-trip efficiency of at least 80%.o An expected system lifetime of no less than 10 years.

The pilot demonstration of developed technology at a strategic location on the distribution grid to enable community-scale solar + storage benefits to system owners and the distribution grid.

The inclusion of smart inverters, defined for the purposes of this solicitation as inverters capable of performing autonomous grid functions and communications.23

Prevention of unintended islanding as defined in IEEE 154724

Consideration of potential fire hazard risks and mitigation strategies for community-scale solar + storage to ensure public health and safety.

Evaluation of potential incentive changes, pricing schemes, and rate structures that may impact market deployment of community-scale solar + storage.

Reduction in the total customer evening peak load of at least 15%.Eligible projects under this project group should also include may also consider the following features:

23 Defined as Phase I and II smart inverter recommendations from the Rule 21 updated Smart Inverter Working Group24 IEEE 1547-2003: 4.4.1 Unintentional Islanding Requirement: For an unintentional island in which the [Distributed Resource] energizes a portion of the Area [Electric Power System] through the [Point of Common Coupling], the [Distributed Resource] interconnection system shall detect the island and cease to energize the Area [Electric Power System] within two seconds of the formation of an island.

November 2016 January 2017 Page 21 GFO-16-309

Leverage the LNBA and ICA methodologies being developed as part of the IOU DRPs.

Complement and build upon IOU demonstration projects from the DRP proceeding, specifically for project groups C (Demonstrate DER Locational Benefits) and D (Demonstrate Distribution Operations at High-Penetrations of DER).25

Assessment of methods to compensate project owners/lessees for ancillary or grid services.

Preference for a multi-family affordable housing and/or disadvantaged community26 demonstration site.

Letter of awareness/support from the serving utility. For multi-family residential communities, projects should aim to reduce tenant

electricity bills by at least 15%, based on tenants’ 2016 electricity rates and usage, and demonstrate that the business model can be scaled across California without additional grant funding.

Evaluation of potential ownership and business models with an eye towards standardization and mass consumer adoption.

Smart community energy management strategies, which may include DER aggregation approaches and/or virtual power plants.

Demand response capabilities and other distributed energy resources and/or enhancing features that are expected to increase the value of the project to the community and/or to the distribution grid.

Consideration of community solar models in secondary networked distribution systems as well as in radial networked distribution systems. 27

Compatibility with CPUC programs, such as:o Meet the requirements to participate in the Demand Response Auction

Mechanism (DRAM),28 if applicable.o Meet the requirements for storage portion of the project to participate in

the Self-Generation Incentive Program (SGIP),29 if applicable.o For onsite multifamily affordable housing projects, meet the requirements

to participate in the Multifamily Affordable Housing Solar Roofs Program.30

Applicants should also demonstrate how they will achieve the following metrics for success:

1) Detailed performance data for the PV, storage, and inverter components, and an analysis of expected versus actual performance.

25 DRP Final Guidance Document, available at - http://www.cpuc.ca.gov/General.aspx?id=507126 A disadvantaged community is defined for the purposes of this solicitation as one with a score of 81% or greater in the California Communities Environmental Health Screening Tool (CalEnviroScreen).27 In secondary network distribution systems, multiple transformers and cables are configured to run in parallel. Power in these cables can flow in any direction along the low-voltage network, preventing the loss of a single line creating an interruption of power. However, voltage in this network must be managed so that electricity does not reverse flow to the medium-voltage feeders, thus there tend to be more restrictions for distributed generation in these areas than in radial systems, where each customer has one source of supply and where controlled reverse flow is more viable.28 PG&E: PG&E 2017 DRAM; SCE: SCE 2017 DRAM Request for Offers; SDG&E: SDG&E 2017 DRAM 29 http://www.cpuc.ca.gov/sgip/30 https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201520160AB693

November 2016 January 2017 Page 22 GFO-16-309

2) Detailed energy and cost savings data for the project, including an analysis of expected versus actual values.

3) Detailed value of energy and ancillary services provided by the project, including an analysis of expected versus actual values.

4) Reduce soft costs for distributed PV and storage to less than 20% of total system costs.

5) Increase the circuit’s hosting capacity31 by at least 25%.32 6) Maximize value streams for distributed PV and storage combined with

complementary technologies.7) Determination of ideal use cases for community-scale and distributed PV +

storage configurations that balances value to the individual customer with grid needs.

8) For multi-family residential communities, reduce tenant electricity bills by at least 15%, based on tenants’ 2016 electricity rates and usage.

b. Group 2: Pilot Demonstration of Advanced Solar + Storage Technologies for Building-Scale Applications

Building owners are increasingly opting to install PV and energy storage to manage onsite energy costs and demand charges. However, these technologies are often procured separately without leveraging the advantages of having a comprehensive solar + storage solution, which has been shown to maximize customer bill savings and minimize payback time. There is a need to develop a standardized, replicable solar + storage solution for buildings that can optimize individual customer cost reduction while supporting distribution grid functions.

This project group is focused on technology development and pilot demonstrations of innovative solar + storage technologies and configurations for building-scale applications to reduce the overall costs and maximize value to building owners and customers. For purposes of this solicitation, building-scale is defined as a project involving a single commercial or industrial building33 with the onsite energy systems connected behind-the-meter smaller than 500 kW and larger than 50 kW in size. The 50 kW minimum and 500 kW maximum sizes are preferred limits, not required limits.The goals of projects in this group are to develop and evaluate advanced technologies that exploit the synergies between solar and stationary energy storage to enhance the value of behind-the-meter solar + storage to individual commercial and industrial building owners and tenants. Projects must also incorporate smart building energy management approaches and operational strategies to support local grid operations. Priority will be placed on technology solutions that can be widely replicated for similar building types across the state.

31 “Hosting capacity” is defined as the upper limit of PV on a circuit, with the current design and operation, that maintains acceptable performance for that circuit.32 IEEE (see http://ieeexplore.ieee.org/stamp/stamp.jsp?arnumber=6186479) and NREL (see http://www.nrel.gov/docs/fy13osti/54742.pdf) have performed case studies looking at the performance of systems with PV penetration significantly higher than 15% of the maximum daytime feeder load without significant adverse effects.33 School and university buildings may qualify as demonstration sites for this project group.

November 2016 January 2017 Page 23 GFO-16-309

Eligible Group 2 projects mustshould include the following features, at a minimum:

Clear description of how the proposed technology solution offers competitive advantages over commercially available market technologies.

Detailed benchmarking of the building proposed as a demonstration site. Development of advanced solar + storage technology, integrated at the module

level for both the solar and the storage, and targeted for commercial and industrial building applications. Examples of advanced technologies are:o Building-integrated PV for windows or roofing materials with building

integrated energy storage.o Hybrid solar PV/ daylighting system with integrated energy storage.o Building-scale PV/thermal technologies, including solar hot water

applications with an energy storage component. The integrated solar + storage technology mustshould meet all of the following

performance criteria, at a minimum:o 10% reduction in costs versus a standalone solar system plus a

standalone energy storage system.o 10% greater energy generated over the course of an average day

compared to standalone solar plus standalone energy storage.o The ability to smooth solar intermittency at the point of generation,

resulting in a reduction in standard deviation of the system output by greater than 10% compared to traditional PV.

o An increase in overall system capacity factor by 10% compared to traditional fixed-tilt PV systems.

o The ability to provide energy later into the evening than traditional fixed-tilt PV systems.

o The ability to provide distribution grid services, as needed, with an examination of potential compensation strategies for providing these services.

o Solar module efficiency of at least 21%.o Storage round-trip efficiency of at least 80%.o An expected system lifetime of no less than 10 years.

The pilot demonstration of developed technology at a single commercial or industrial building situated at a strategic location on the distribution grid to maximize benefits to building owners and tenants while supporting the local grid.

The inclusion of smart inverters capable of performing autonomous grid functions and communications.34

Smart building energy management strategies to smooth net load, reduce evening peak demand and maximize economic benefits while supporting local grid needs.

Demand response capabilities and other distributed energy resources and/or enhancing features that are expected to increase system value.

Evaluation of potential incentive changes, pricing schemes, and rate structures that may impact market deployment of building-scale solar + storage.

Eligible projects under this project group should also includemay also consider the following features:

34 Defined as Phase I and II smart inverter recommendations from the Rule 21 updated Smart Inverter Working Group

November 2016 January 2017 Page 24 GFO-16-309

Supporting and leveraging requirement for Zero-Net Energy buildings and time dependent valuation of energy supply and demand.

Complement and build upon advancements and recommendations from the IDER proceeding at the CPUC.35

Assessment of methods to compensate project owners/lessees for ancillary or grid services.

Smart, demand response-enabled appliances and building load, such as water heaters or thermostat controls, to support PV smoothing and grid services.36 37

Preference for buildings located in a disadvantaged community. Leverage the LNBA and ICA methodologies being developed as part of the

IOU DRPs. Consideration of potential fire hazard risks and mitigation strategies for

building-scale solar + storage to ensure public health and safety. Assessment of potential ownership and business models with an eye towards

standardization and mass consumer adoption. Compatibility with CPUC programs, such as:

o Meet the requirements to participate in the DRAM, if size eligibility requirements are met.

o Meet the requirements for storage portion of the project to participate in the SGIP, if applicable.

Applicants should also demonstrate how they will achieve the following metrics for success:

1) Detailed performance data for the PV, storage, and inverter components, and an analysis of expected versus actual performance.

2) Detailed energy and cost savings data for the project, including an analysis of expected versus actual values.

3) Detailed value of energy and ancillary services provided by the project, including an analysis of expected versus actual values.

4) Provide greater than 50%38 of peak load by onsite solar generated at the target building.

5) Smoothing of building demand profile to minimize net-load during evening and morning system peak demand and maximize utilization during mid-day peak solar generation.

a. Reduction in evening peak load by 15% or more.6) Determination of ideal DER portfolios for standardized building types to enable

high-penetration PV at the building level.

35 http://www.cpuc.ca.gov/general.aspx?id=10710 36 Smart water heaters behave like thermal energy storage by shifting electricity consumption to absorb excess energy supply and provide demand response services such as frequency regulation. These water heaters avoid compromising user comfort by maintaining a constant water temperature at the top of the heater while the bottom is free to perform energy storage functions.37 UC Berkeley, 2008 ACEEE Summer Study on Energy Efficiency in Buildings, “Demand Response-Enabled Residential Thermostat Controls,” available at http://aceee.org/files/proceedings/2008/data/papers/1_98.pdf 38 IEEE (see http://ieeexplore.ieee.org/stamp/stamp.jsp?arnumber=6186479) and NREL (see http://www.nrel.gov/docs/fy13osti/54742.pdf) have performed case studies looking at the performance of systems with PV penetration significantly higher than 15% of the maximum daytime feeder load without significant adverse effects.

November 2016 January 2017 Page 25 GFO-16-309

7) Reducing building owner/tenant utility bills by at least 10%, including demand charge reduction.

8) Applications should first prioritize value to individual customers, and second consider functions to support the grid.

c. Group 3: Enhanced Modeling Tools to Maximize Solar + Storage BenefitsThough it is becoming widely recognized that behind-the-meter and community-scale solar + storage projects can benefit the grid and provide greater value to customers than solar or storage alone can, it is not yet clear what those values are or how they can be maximized (nor how the possible adverse impacts of high penetrations of PV can be minimized). The CPUC has directed the IOUs to assess the locational net benefits and the integrated capacity of DER technologies, but the IOUs’ plans have not yet been approved. Any results from the LNBA and ICA are still years off and may not include a strong focus on combined solar + storage and where it can provide the greatest value to the grid. In addition, there is no identified method to incentivize customers to install systems, or buy into utility-owned or third party-owned systems, that provide the greatest value to the grid.

This project group is focused on the development of modeling tools and strategies to help streamline the deployment of distributed solar, energy storage, and smart inverters and to maximize benefits to individual customers and the larger grid. This project group will develop and evaluate strategies to reduce non-hardware costs and increase the potential value streams for distributed PV and storage to help strengthen the business case for DER.

Tools should leverage the IOU DRPs and other existing modeling tools to provide additional enhancing features focused on increasing the value of distributed PV and storage with smart inverters to customers and the grid. Eligible Group 3 projects mustshould include:

Discussion of how the proposed activities will leverage and/or enhance LNBA and ICA methodologies from IOU DRPs.

Discussion of how the project will benefit relevant CPUC proceedings, such as IDER, DRP, RPS, etc.

Evaluation of how the marginal cost and value of systems change as a function of PV penetration and location on the feeder.

Varying assumptions regarding participation in net energy metering, time of use rates, availability of investment tax credits, participation in reserve markets, and other relevant economic considerations.

Analysis of compensation strategies for power and ancillary services that will incentivize systems that are of the greatest value to both the grid and the individual customers.

Assessment of strategies to clarify and minimize interconnection fees for distributed solar + storage projects.

Development of a module that specifically examines community-scale solar + storage.

Working closely with recipients of funding in project groups 1, 2, and 6 to leverage preliminary outcomes, results, and technology characteristics defined in those project groups of this solicitation to identify ideal locations for widespread deployment of community solar + storage, building-scale solar +

November 2016 January 2017 Page 26 GFO-16-309

storage, and front-of-meter storage in areas with existing high-penetration distributed solar, across California IOU service territories.

Focus on needs and perspectives of customers, third-party aggregators, and IOUs.

Modeling of at least one of the three IOU service areas.o If modeling does not cover all three IOU service areas, include plans to

make the modeling tool applicable to all three areas.

Applications submitted under this project group may also include:

Community solar + storage under various configurations. DER aggregation strategies / virtual power plants. Opportunities for participation in demand response programs. Consideration of solar + storage deployment impacts to transmission and

subtransmission power flow. Consideration of distributed PV and storage in both secondary networked

distribution systems and radial distribution systems, as well as at the substation level.

Applicants should also demonstrate how they will achieve the following metrics for success:

1) Identification of most value and least cost configurations of solar + storage for a typical California IOU distribution system with various PV penetrations.

2) Recommendations for greatest cost-benefit ratio to support optimal sizing and investment of solar + storage.

3) Recommendations for alternatives, both with and without storage, to the 15 percent hosting capacity standard in the Rule 21 proceeding (or its successor), and what factors affect these hosting capacity recommendations.

4) Recommendations for interconnection fees and compensation levels for reserves and ancillary services that would incentivize the uptake of solar + storage installations with the highest value to the customer, least amount of adverse impacts, and highest benefits to the grid.

d. Group 4: Advanced Smart Inverter Capabilities to Support High-Penetration Solar

The SIWG’s Phase I recommendations for autonomous smart inverter functions are expected to reduce adverse impacts of high penetrations of PV on the California grid. These Phase I recommendations are expected to become mandatory for new inverters by the end of 2017. Phase II recommendations relate to enabling communications functionality and Phase III recommendations include the ability for inverters to respond to signals from the utility to support the grid. The schedule for adoption of the Phase II and Phase III recommendations is not yet known, but what is clear is that testing and verification of the recommendations will be necessary. In addition, consensus on the Phase III recommendations was not reached by the broader SIWG, particularly regarding customer compensation when the utility signals their inverters to reduce or stop power flow to the grid.

This project group is focused on pilot demonstrations of advanced smart inverter functions to decrease distributed PV integration costs, increase circuit hosting

November 2016 January 2017 Page 27 GFO-16-309

capacity, and/or enhance the value of distributed PV to consumers and the grid. The focus of awarded projects will be the verification of Phase III recommendations as defined by the SIWG, as well as other advanced communication functions the applicant identifies that would be valuable to the grid and individual customers.

Projects will build upon the work already performed under EPC-14-036 with SunSpec Alliance and EPC-14-079 with Electric Power Research Institute, both of which will include verification of the SIWG Phase I and Phase II recommendations.

Eligible Group 4 projects mustshould include bench-scale verification and pilot-scale demonstration of the following SIWG Phase III functions, at a minimum:

Monitor Key DER Data: All DER systems shall have the capability to provide key DER data at the DER’s Electrical Coupling Point (ECP) and/or at the point of common coupling. IOUs shall define in their Interconnection Handbooks when and under what conditions the data exchange requirements shall be provided, including what types of data, whether and how it may be aggregated, frequency of monitoring, time latency, etc.

DER Cease to Energize: The “cease to energize” request shall cause a “cease to energize” state at the ECP or optionally shall allow the opening of a switch at a Referenced Point. The cease to energize shall cause the DER to output zero active current flow and (close to zero) reactive power flow.

DER Return to Service: The return to service request shall end the “cease to energize” state or shall initiate the closing of the DER switch at the Referenced Point.

The Limit Maximum Real Power Percent mode shall limit the real power level at the Referenced Point as a percent of the maximum real power capability, and/or the Limit Maximum Real Power Level mode shall limit the real power level at the Referenced Point to a specific real power value.

For DER systems that can control their real power output (such as energy storage, synchronous generators, etc.), the Set Real Power Percent mode shall set the real power level at the Referenced Point as a percent of the maximum real power capability, and/or the Set Real Power Level mode shall set the real power level at the Referenced Point to a specific real power value.

The Frequency-Watt Emergency mode shall counteract frequency excursions during high and low frequency ride-through events by decreasing or increasing real power. The change in real power may be provided by changing generation, changing load, or a combination of the two.

The Volt-Watt mode shall respond to changes in the voltage at the Referenced Point by decreasing or increasing real power. The change in real power may be provided by changing generation, changing load, or a combination of the two.

The Dynamic Reactive Current Support mode shall provide reactive current support in response to dynamic variations in voltage (rate of voltage change) rather than changes in voltage.

Schedules shall be capable of setting real and reactive power values as well as enabling and disabling DER modes for specific time periods.

Unintended islanding should be prevented.

November 2016 January 2017 Page 28 GFO-16-309

Additional scheduling capabilities may optionally be supported, such as providing pricing signals for different scheduled times.

Applicants should also demonstrate how they will achieve the following metrics for success:

1) Written assessment of SIWG Phase III recommendations.2) Increase hosting capacity on the circuit by at least 25%. 3) Providing data and/or tools that can be used to determine fair levels of

compensation for reducing customer’s power output to support grid functions.4) Recommendations for cybersecurity and privacy of customer information.

e. Group 5: Holistic Forecasting to Support High-Penetration Solar Grid Operations

In recent years, EPIC and other programs have funded a number of projects to advance the accuracy of solar and wind forecasting, but most of these projects are focused on forecasts for individual power plants, regions, or microgrids, rather than a comprehensive, system-wide forecast. Currently there are no tools that consider at high resolution the system-wide impacts of both utility-scale and behind-the-meter solar and wind resources and the interaction with both conventional resources and overall customer load. Such a tool could be particularly beneficial to improve the accuracy of short-term forecasting as DER penetration increases and to help identify unusual but costly day-ahead forecast scenarios for grid operators.

This project group is focused on integrated and holistic electricity forecasting approaches for the day-ahead and shorter timescales that consider all grid-connected renewable generation, including distributed generation, along with load forecasts, other types of DER, and conventional generation resources. Particular focus should be placed on improving DER energy production availability and on identifying and avoiding scenarios that would be the most costly for grid operators and ratepayers, such as extreme weather events. The goals for projects funded in this group will be to provide tools that the CAISO will integrate into its grid operations and its day-ahead and short-term planning efforts and to evaluate the specific economic benefits the tool will provide.

Eligible projects in this project group mustshould include the following features in an application:

Development of a time-dependent valuation metric for renewable energy forecast errors39 to determine associated costs of inaccuracies, particularly during peak demand times and ramp events.

Consideration of coastal marine cloud layers, monsoonal events, atmospheric inversions, and microclimate drought impacts within California.

39 See “A suite of metrics for assessing the performance of solar power forecasting” at http://www.utdallas.edu/~jiezhang/Journals/JIE_2015_SE_solar_forecasting.pdf for an example of metric development to assess the impacts of improved solar forecasting.

November 2016 January 2017 Page 29 GFO-16-309

Locational forecasting to support development of refined mid-term growth scenarios for DER within distribution territories, with inclusion of solar + storage.

Determination of additional data needed to perform accurate forecasts, associated cost impacts for grid operators and ratepayers, and strategies for facilitating secure data transfer.

Establishing a baseline for both central station and DER forecasting for CAISO and California IOUs to use in evaluating proposed and future forecast improvements.

Methodology to gather DER energy production data on timescales of 1 hour or less.

Eligible projects in this project group should also includemay also consider the following features in an application:

Methods for resolving cloud optical thickness that combine multiple sensor inputs, including high-resolution ground observations and advanced satellite imaging techniques.

Models that integrate numerical weather prediction methods with remote sensing and ground telemetry to increase reliability of forecasts for rapid ramp events.

Consideration of different policies that may affect the growth of distributed renewables and DER within IOU territories over the medium- to long-term and potential impacts for short-term solar forecasting.

Coordination with the CAISO and/or the IOUs, including letters of support for the project.

Analysis of probabilistic forecasting methods. Establishing a data library with aggregated DER energy production on

timescales of 1 hour or less, broken out by region (zip code or county).

Applicants should also demonstrate how they will achieve the following metrics for success:

1) Minimizing the economic and environmental costs of forecast errors and consequences for over/under generation.

2) Data and/or tools that can support both day-ahead and short-term CAISO planning and operations.

3) Improvement of central station and DER meteorological/MW forecasting accuracy for day-ahead, 75 minute, 45 minute, and 10 minute timescales by at least 10% over persistence forecasts, as measured by a root means squared formula.

f. Group 6: Energy Storage Deployment to Facilitate Storage Interconnection and Enable Integration of High-Penetration Distributed Solar

This project group is focused on demonstrations of energy storage technologies to enable and mitigate the impacts of high-penetration distributed photovoltaics and other DERs while streamlining storage interconnection and reducing integration costs on the distribution grid. The addition of storage systems on circuits with existing PV will prevent the uncontrolled mid-day export of large amounts of solar PV generation to the

November 2016 January 2017 Page 30 GFO-16-309

grid and reduce the evening net load peak and the associated need for fast-ramping generation.

Demonstrations will be sited in front of the meter40 on circuits with existing high-penetration (aggregated capacity greater than or equal to 50% of peak load on the circuit) solar to offset the need for additional system upgrades and expansion.

Eligible projects in this project group mustshould include the following features in an application:

Coordination with the local electric utility41: utility may own or procure the deployed storage, or it may provide a letter of support for the project.

Deployment of storage is primarily intended to provide grid support services. Locating all storage solutions in front of the meter on the distribution system. Use of a management system for efficient operation of the storage. Consideration of potential fire hazard risks and mitigation strategies for front-of-

the-meter storage to ensure public health and safety. Identification of the value provided by the deployed storage. Performance metrics:

o Effective system lifetime of at least 10 years.o Round-trip efficiency of at least 80%.

Eligible projects in this project group should also includemay also consider the following features in an application:

Bundling multiple technologies to provide a range of grid services in a single package.

Leveraging the LNBA and ICA methodologies being developed as part of the IOU DRPs.

Participating in CAISO reserve markets. Meet the requirements to participate in the SGIP, if applicable.

Applicants should also demonstrate how they will achieve the following metrics for success:

Detailed storage performance data and an analysis of expected versus actual performance.

Increase the hosting capacity of the circuit(s) by at least 25%. Deferral of transmission and distribution upgrades. Storage interconnection recommendations that could be used in the successor

to the R.11-09-011 Rule 21 proceeding. Demonstrated progress toward achieving 2020 energy storage goals:

o Round-trip efficiency of at least 90%.

40 “Front of the meter” is defined for the purposes of this solicitation as being connected to the distribution grid in a location that is not between customer load and that customer’s meter.41 This may be an IOU or a community choice aggregator, but in either case, benefits to IOU ratepayers must be identified.

November 2016 January 2017 Page 31 GFO-16-309

o System lifetime of at least 15 years.o Levelized cost of energy of $0.10/kWh or lower.o Net 10% or greater system lifetime value of benefits relative to costs.

4. Ratepayer Benefits, Technological Advancements, and BreakthroughsCalifornia 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.42 The CPUC has also adopted the following guiding principles as complements to the key principle of electricity ratepayer benefits: 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.43

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; and (2) lead to technological advancement and breakthroughs to overcome barriers to achieving the state’s statutory energy goals.

5. Groups 1, 2, and 6 only: Measurement and Verification Plan Applications for project groups 1, 2 and 6 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), water use (million gallons), and cost savings for energy, water, and other benefits. Any estimates of energy and water savings or GHG impacts must be calculated using the References for Calculating Electricity End-Use, Electricity Demand, and GHG Emissions (Attachment 12).

42 See CPUC “Phase 2” Decision 12-05-037 at p. 12, http://docs.cpuc.ca.gov/PublishedDocs/WORD_PDF/FINAL_DECISION/167664.PDF.43 See CPUC “Phase 2” Decision 12-05-037 at p. 12, http://docs.cpuc.ca.gov/PublishedDocs/WORD_PDF/FINAL_DECISION/167664.PDF.

November 2016 January 2017 Page 32 GFO-16-309

III. Application Organization and Submission InstructionsA. APPLICATION FORMAT, PAGE LIMITS, AND NUMBER OF COPIES 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) File Format: MS Word version 1997-2003, or version 2007 or later

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

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

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

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

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

pages, excluding the cover page

The following attachments 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)

Number of Copies of the Application

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

November 2016 January 2017 Page 33 GFO-16-309

B. PREFERRED METHOD FOR DELIVERY

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

First time users must register as a new user to access the system. Applicants will receive an email after documents have been submitted and received by the Energy Commission. This email just means the Energy Commission received something from the applicant and is NOT confirmation that all submitted or required documents were received. The applicant is solely responsible for ensuring all required documents are received by the Energy Commission. A tutorial of the system will be provided at the pre-application workshops and you may contact the Commission Agreement Officer identified in the Questions section of the solicitation for more assistance.

C. HARD COPY DELIVERY

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

U.S. Mail In Person Courier service

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

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

Packaging and LabelingAll hard copy applications must be labeled "Grant Funding Opportunity GFO-16-309," and include the title of the application.

November 2016 January 2017 Page 34 GFO-16-309

Include the following label information on the mailing envelope:

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

GFO-16-309Contracts, Grants, and Loans Office, MS-18California Energy Commission1516 Ninth Street, 1st FloorSacramento, California 95814

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

2. Label the application cover “Grant Funding Opportunity GFO-16-309” and include: (a) the title of the application; and (b) the applicant’s name.

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

Tab/Attachment Number

Title of Section

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

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

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

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

November 2016 January 2017 Page 35 GFO-16-309

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

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

a. Group Specific Questions Include required group specific information (see Section II.B.2) in the

specified sections.

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

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

5. Project Team Form (Attachment 5)Identify by name all key personnel44 assigned to the project, including the project manager and principal investigator (if applicable), and individuals employed by any major subcontractor (a major subcontractor is a subcontractor receiving at least 25% of Commission funds or $100,000, whichever is less). Clearly describe their individual areas of responsibility. Include the information required for each individual, including a resume (maximum two pages, printed double-sided).

6. Scope of Work Template (Attachments 6 and 6a)Applicants must include a completed Scope of Work for each project, as instructed in the template. The Scope of Work identifies the tasks required to complete the project. It includes a project schedule that lists all products, meetings, and due dates. All work must be scheduled for completion by March 31, 2020.

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.

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

November 2016 January 2017 Page 36 GFO-16-309

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

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

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

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

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

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

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

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

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

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

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

(i) prevailing wages are paid; and

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

November 2016 January 2017 Page 37 GFO-16-309

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

or, (b) Timely obtain a legally binding determination from the Department of Industrial Relations or a court of competent jurisdiction before work begins on the project that the proposed project is not a public work.

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

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

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

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

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

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

1) Commitment Letters Groups 1-5 only: Match funding for Groups 1-5 is not required. However, if

match funding will be provided, applicants must submit a match funding commitment letter signed by each representative of the entity or individual that is committing to providing match funding. The letter must: (1) identify the

November 2016 January 2017 Page 38 GFO-16-309

source(s) of the funds; and (2) guarantee the availability of the funds for the project. Group 6 only: For applicants to Group 6, match funding is required in the amount of at least 20% of the requested project funds. Applicants must submit a match funding commitment letter signed by each representative of the entity or individual that is committing to providing match funding. The letter must: (1) identify the source(s) of the funds; and (2) guarantee the availability of the funds for the project.

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

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

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

November 2016 January 2017 Page 39 GFO-16-309

IV. Evaluation and Award Process A. APPLICATION EVALUATION

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

1. Stage One: Application Screening The Contracts, Grants, and Loans Office and/or the Evaluation Committee will screen applications for compliance with the Screening Criteria in Section E of this Part. Applications that fail any of the screening criteria will be rejected.

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

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

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

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

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

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

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

Debriefings: Unsuccessful applicants may request a debriefing after the release of theNOPA by contacting the Commission Agreement Officer listed in Part I. A request for debriefing must be received no later than 30 calendar days after the NOPA is released.

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

and/or level of funding.

November 2016 January 2017 Page 40 GFO-16-309

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

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

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

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

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

C. GROUNDS TO REJECT AN APPLICATION OR CANCEL AN AWARD

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

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

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

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

The applicant has previously received funding through a Public Interest Energy Research (PIER) agreement, has received the PIER royalty review letter (which the Energy Commission annually sends out to remind past recipients of their obligations to pay royalties), and has not responded to the letter or is otherwise not in compliance with repaying royalties.

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

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

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

November 2016 January 2017 Page 41 GFO-16-309

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

D. MISCELLANEOUS

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

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

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

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

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

4. Solicitation Errors

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

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

November 2016 January 2017 Page 42 GFO-16-309

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

E. STAGE ONE: APPLICATION SCREENING

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

Pass/Fail

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

Pass Fail

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

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

Pass Fail

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

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

Pass Fail

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

Pass Fail

6. Applicants to Group 6 only: The Application Form and budget specify that the applicant will provide match funds of at least 20% of the requested Energy Commission funds.

Pass Fail

7. If the project involves pilot testing/ demonstration/ deployment activities:

o The Application Form identifies one or more test/ demonstration/ deployment site locations.

o All test/ demonstration/ deployment sites are located in a

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

Pass Fail

N/A

(project does not involve testing/ demonstration/ deployment activities)

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

Pass Fail

9. The applicant has not included a statement or otherwise indicated that it will not accept the terms and conditions, or that acceptance

Pass Fail

November 2016 January 2017 Page 43 GFO-16-309

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

Pass/Fail

is based on modifications to the terms and conditions.

10. For projects in Groups 1-5 that do not require match funding: The application includes one or more support letters. When a site commitment letter is required (Section III.D.11), the application includes this letter. All letters are prepared as specified in Attachment 11.

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

For projects in Group 6 that require match funding: The application includes one or more support letters and a match funding commitment letter. When a site commitment letter is required (Section III.D.11), the application includes this letter. All letters are prepared, as specified in Attachment 11.

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

Pass Fail

November 2016 January 2017 Page 44 GFO-16-309

F. STAGE TWO: APPLICATION SCORING

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

The minimum passing score for criteria 1−4 is 49.00 points and the total minimum passing score is 70.00 out of 100 points for criteria 1-7.

The points for criteria 5−7 will only be applied to applications that achieve the minimum score for criteria 1−4. The points for criteria 8-10 will only be applied to applications that achieve the minimum scores for criteria 1-4 and criteria 1-7.

SCORING SCALE

% of Possible Points

Interpretation Explanation for Percentage Points

0% Not Responsive

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

unacceptable.

10-30% Minimally Responsive

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

minimally acceptable.

40-60% Inadequate

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

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

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

acceptable.

80% Good

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

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

90% Excellent

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

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

100% Exceptional

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

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

November 2016 January 2017 Page 45 GFO-16-309

SCORING CRITERIA

The Project Narrative (Attachment 4) must respond to each criterion below, unless otherwise indicated. The responses must directly relate to the solicitation requirements and project focus as stated in Section I.A. and Section II.B. Failure to comply with the solicitation could be grounds for application rejection as stated in Section IV.C. Any estimates of energy savings or GHG impacts must be calculated as specified in the References for Calculating Electricity End-Use, Electricity Demand, and GHG Emissions (Attachment 12), to the extent that the references apply to the proposed project.

Scoring Criteria Maximum Points

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

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

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

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

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

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

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

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

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

i. Groups 1, 2, and 6 only: Provides information described in Section II.B.5.

20

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.

20

November 2016 January 2017 Page 46 GFO-16-309

Scoring Criteria Maximum Points

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

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

G. Groups 1, 2, and 6 only: Provides information described in Section II.B.5.

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

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

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

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

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

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

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

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

20

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

team. Includes an organizational chart that illustrates the structure.

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

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

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

10

November 2016 January 2017 Page 47 GFO-16-309

Scoring Criteria Maximum Points

management and coordination of all projects in the application.

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

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

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

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

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

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

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

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

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

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

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

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

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

November 2016 January 2017 Page 48 GFO-16-309

Scoring Criteria Maximum Points

5. Budget and Cost-Effectivenessa. Budget forms are complete, as instructed in Attachment 7.

b. Justifies the reasonableness of the requested funds relative to the project goals, objectives, and tasks.

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

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

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

10

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

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

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

Percentage of Possible Points

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

15

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

The score for this criterion will derive from the Category Budget in the budget forms, which compare the total Energy Commission funds for the direct labor and fringe benefits costs to the total loaded 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. For the purposes of this criterion, the Energy Commission will include the facility charges (e.g., rent, utilities, etc.), burdens and other like costs that are budgeted as direct costs into the indirect costs in the formula.

5

November 2016 January 2017 Page 49 GFO-16-309

Scoring Criteria Maximum Points

Total Possible Points(Minimum Passing Score is 70) 100

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

8. Groups 1-5: Match Funding above the 0% MinimumGroup 6: Match Funding above the 20% Minimum

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

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

that exceeds the minimum match funding amount. This ratio will be multiplied by 5 to yield the points.For example: For Groups 1-5, there is no minimum requirement for match funding. If the requested EPIC funds are $1,000,000 and the applicant pledged $500,000 in match funding, the full $500,000 will be evaluated for additional points. The match funding ratio is 0.50 (5 x 0.50 = 2.5 points awarded).For Group 6, if requested EPIC funds are $1,000,000, the applicant must provide at least $200,000 (20% of $1,000,000) in match funding. If the applicant pledged $500,000 in match funding, the amount that will be evaluated for additional points is $300,000. The match funding ratio is 0.30 (5 x 0.30 = 1.5 points awarded).

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

10

November 2016 January 2017 Page 50 GFO-16-309

Scoring Criteria Maximum Points

9. Groups 1-2 only: Disadvantaged CommunitiesProjects with all test or demonstration sites located in disadvantaged communities that justify how the project will benefit the disadvantaged community will receive additional points. Projects with stronger justifications for how the disadvantaged community will benefit will receive higher scores on this criterion.

A disadvantaged community is identified by census tract and represents the 25% highest scoring tracts in CalEnviroScreen 2.0 or later versions. 45

5

45 http://oehha.ca.gov/ej/ces2.html

November 2016 January 2017 Page 51 GFO-16-309