GRANT FUNDING OPPORTUNITY

Enhancing Safety, Environmental Performance, and Resilience of California’s Natural Gas System

GFO-17-502http://www.energy.ca.gov/contracts/index.html

State of CaliforniaCalifornia Energy Commission

September 2017

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

A. PURPOSE OF SOLICITATION................................................................................................................1B. KEY WORDS/TERMS.......................................................................................................................... 3C. APPLICANTS’ ADMONISHMENT.............................................................................................................4D. ADDITIONAL REQUIREMENTS................................................................................................................4E. BACKGROUND.................................................................................................................................... 5F. FUNDING........................................................................................................................................... 8G. KEY ACTIVITIES SCHEDULE...............................................................................................................10H. NOTICE OF PRE-APPLICATION WORKSHOP........................................................................................11I. QUESTIONS..................................................................................................................................... 12

II. ELIGIBILITY REQUIREMENTS...........................................................................................14A. APPLICANT REQUIREMENTS..............................................................................................................14B. PROJECT REQUIREMENTS................................................................................................................15

III. APPLICATION ORGANIZATION AND SUBMISSION INSTRUCTIONS............................25A. APPLICATION FORMAT, PAGE LIMITS, AND NUMBER OF COPIES..........................................................25B. PREDERRED METHOD FOR DELIVERY...............................................................................................26C. HARD COPY DELIVERY....................................................................................................................26D. APPLICATION ORGANIZATION AND CONTENT......................................................................................27

IV. EVALUATION AND AWARD PROCESS............................................................................32A. APPLICATION EVALUATION........................................................................................................32B. RANKING, NOTICE OF PROPOSED AWARD, AND AGREEMENT DEVELOPMENT................32C. GROUNDS TO REJECT AN APPLICATION OR CANCEL AN AWARD.......................................33D. MISCELLANEOUS........................................................................................................................ 34E. STAGE ONE: APPLICATION SCREENING............................................................................................35F. STAGE TWO: APPLICATION SCORING...............................................................................................36

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ATTACHMENTS

Attachment Number Title

1 Application Form (requires signature)

2 Executive Summary Form

3 Fact Sheet Template

4 Project Narrative Form

5 Project Team Form

6 Scope of Work Template

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

7 Budget Forms (Excel spreadsheet)

8 CEQA Compliance Form

9 Reference and Work Product Form

10 Contact List Template

11 Commitment and Support Letter Form (letters require signature)

12 California Based Entity (CBE) Form

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I. IntroductionA. PURPOSE OF SOLICITATION

The purpose of this solicitation is to develop and test cost-effective approaches for evaluation of structural integrity of the levees protecting natural gas infrastructure in the Sacramento-San Joaquin Delta; to enhance Cal-Adapt tool features, promoting integration of the results from the California Fourth Climate Change Assessment studies; to determine whether the chemical and/or isotopic fingerprinting method could be used to determine the geographical origin of natural gas imported and consumed in California; to provide funding for the large field study quantifying and characterizing methane emissions from the natural gas infrastructure in the San Joaquin Valley and developing cost-effective methane leak survey methods to reduce greenhouse gas (GHG) emissions; and to identify building stock in disadvantaged communities that would benefit the most from retrofitting activities.

To this end, the solicitation will fund energy-related environmental research and deploy projects addressing the following research initiatives from the 2016-2017 and 2017-2018 Natural Gas Research and Development Programs and from the 2016-2017 Reliability and Climate Focused Natural Gas Supplemental Budget Plan:

Exploratory Study of Innovative Methods to Assess Structural Integrity of Levees Protecting Natural Gas Infrastructure in the Sacramento-San Joaquin Delta – FY 2016-2017 Natural Gas R&D ProgramThe proposed research will develop and test innovative noninvasive/nondestructive method(s) assessing the structural integrity of levees in the Sacramento-San Joaquin Delta that directly or indirectly protect natural gas infrastructure.

Chemical and Isotopic Fingerprints of Natural Gas Basins to Support Full Fuel Cycle Accounting - FY 2016-2017 Natural Gas R&D ProgramThe proposed research will provide data to inform a methodology for life-cycle assessment of GHG emissions from natural gas imported to California.

Developing Next-Generation Cal-Adapt Features to Support Natural Gas Sector Resilience - FY 2017-2018 Natural Gas R&D ProgramThe proposed research will support substantial, next-generation enhancements to Cal-Adapt, such as designing new visualizations in a fast and intuitive interface to respond to the needs of natural gas stakeholders and inform efforts to prepare for and adapt to climate change.

Investigation of Options to Cost Effectively Reduce Methane Leaks - FY 2017-2018 Natural Gas R&D ProgramThe proposed research will identify cost-effective solutions to reduce methane emissions from the NG system, including during production, processing, storage, distribution, and final consumption.

Strategic Comparison of the Cost-Effectiveness of Sensor Systems for Methane Emission Detection and Measurement – FY 2016-2017 Supplemental Budget Plan for Natural Gas R&D Program

The proposed research will conduct continuous or frequent remote sensing methane surveys in strategically chosen areas that include urban areas and areas with natural

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gas production sites to identify and characterize methane emissions from the NG system in a comprehensive fashion, using and testing several innovative cost-effective technologies and systems for methane leak detection.

Disadvantaged Community Targeted Retrofits of Buildings in an Urban Area in the San Joaquin Valley - FY 2017-2018 Natural Gas R&D ProgramThe proposed research will determine the pathways for substantially increasing energy efficiency in a cost-effective manner while maximizing climate benefits in the existing building stock in the San Joaquin Valley.

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

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B. KEY WORDS/TERMS

Word/Term DefinitionApplicant The respondent to this solicitation

Application An applicant’s formal written response to this solicitation

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

CAO Commission Agreement Officer

CARB California Air Resources Board

CEQA California Environmental Quality Act

Days Days refers to calendar days

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)

Energy Commission California Energy Commission

GHG Greenhouse Gas

JPL Jet Propulsion Laboratory

NASA National Aeronautics and Space Administration

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

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

Principal Investigator

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

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

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

R&D Research and Development

Recipient The recipient of an award under this solicitation

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

State State of California

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C. APPLICANTS’ ADMONISHMENT

This solicitation contains application requirements and instructions. Applicants are responsible for carefully reading the solicitation, asking appropriate questions in a timely manner, ensuring that all solicitation requirements are met, submitting all required responses in a complete manner by the required date and time, and carefully rereading the solicitation before submitting an application. In particular, please carefully read the Screening/Scoring Criteria and Grounds for Rejection in Part IV, and the terms and conditions located at: http://www.energy.ca.gov/research/contractors.html.

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

D. ADDITIONAL REQUIREMENTS

1. Time is of the essence. Funds available under this solicitation have encumbrance deadlines as early as June 30, 2018. This means that the Energy Commission must approve proposed awards at a business meeting (usually held monthly) prior to June 30, 2018, to avoid expiration of the funds. Prior to approval and encumbrance, the Energy Commission must comply with the California Environmental Quality Act (CEQA). To comply with CEQA, the Commission must have CEQA-related information from applicants and sometimes other entities, such as local governments, in a timely manner. Unfortunately, even with this information, the Commission may not be able to complete its CEQA review prior to the encumbrance deadline for every project. For example, if a project requires an Environmental Impact Report, the process to complete it can take many months. For these reasons, it is critical that applicants organize project proposals in a manner that minimizes the time required for the Commission to comply with CEQA and provide all CEQA-related information to the Commission in a timely manner such that the Commission is able to complete its review in time for it to meet its encumbrance deadline.

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

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

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

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

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

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

E. BACKGROUND

1. Natural Gas Research, Development, and Demonstration ProgramAssembly Bill 1002 (Wright, Chapter 932, Statutes of 2000) authorizes the California Public Utilities Commission (CPUC) to impose a surcharge on all natural gas consumed in California. These monies fund energy efficiency programs and public interest research and development projects benefitting natural gas ratepayers. In 2004, the CPUC issued Decision 04-08-010, which designated the Energy Commission as the administrator for the research funds.1 The purpose of the program is to benefit California natural gas ratepayers by funding public interest research and development activities, which the CPUC has defined as “developing science or technology, the benefits of which accrues to California citizens and are not adequately addressed by competitive or regulated entities.”2

Program Areas, Strategic Objectives, and Funding InitiativesNatural Gas RD&D projects must fall within one or more specific focus areas (“funding initiatives”) identified in the Natural Gas Research, Development, and Demonstration Budget Plan. This solicitation targets the following program area and research initiatives from the Natural Gas Research and Development Program for Fiscal Year 2016-2017, Natural Gas

1 See CPUC Decision 04-08-010, August 19, 2004, http://docs.cpuc.ca.gov/PublishedDocs/WORD_PDF/FINAL_DECISION/39314.PDF.2 Id. at pp. 25 and 46.

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Research and Development Program Supplemental Budget Plan for Fiscal Year 2016-2017, and Natural Gas Research and Development Program for Fiscal Year 2017-2018.3

Program Investment Area: Energy-Related Environmental Research

o Research Initiative: Exploratory Study of Innovative Methods to Assess Structural Integrity of Levees Protecting Natural Gas Infrastructure in the Sacramento-San Joaquin Delta

o Research Initiative: Chemical and Isotopic Fingerprints of Natural Gas Basins to Support Full Fuel Cycle Accounting

o Research Initiative: Developing Next-Generation Cal-Adapt Features to Support Natural Gas Sector Resilience

o Research Funding Initiative: Investigation of Options to Cost Effectively Reduce Methane Leaks

o Research Funding Initiative: Strategic Comparison of the Cost-Effectiveness of Sensor Systems for Methane Emission Detection and Measurement

o Research Funding Initiative: Disadvantaged Community Targeted Retrofits of Buildings in an Urban Area in the San Joaquin Valley - FY 2017-2018 Natural Gas R&D Program

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

Laws/Regulations

Assembly Bill 32 - Global Warming Solutions Act of 2006 AB 32 created a comprehensive program to reduce 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.

Assembly Bill 1496 – Methane EmissionsAB 1496 ARB to undertake monitoring and measurements of high emission methane "hot spots", to conduct life-cycle GHG emissions analysis of natural gas produced and imported into California, to review and assess the atmospheric reactivity of methane as a precursor to the formation of photochemical oxidant, and to update relevant policies and programs to incorporate new information.

Additional information: https://www.arb.ca.gov/research/methane/ab1496_research.htm

Assembly Bill 758, Building Efficiency4, Statutes of 2009

3 http://www.energy.ca.gov/2016publications/CEC-500-2016-063/CEC-500-2016-063.pdf4 AB 758 (Statutes of 2009, chapter 470)

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

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

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

Senate Bill 3505 Clean Energy and Pollution Reduction Act of 2015SB 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

Integrated Energy Policy Report (Biennial)California Public Resources Code § 25302[d] requires the Energy Commission to release a biennial report that: 1) assesses major energy trends and issues facing the state’s electricity, natural gas, and transportation fuel sectors; and 2) provides policy recommendations to conserve resources; protect the environment; ensure reliable, secure, and diverse energy supplies; enhance the state’s economy; and protect public health and safety. Energy efficiency and demand response are two key components of the state’s strategy to reduce GHG emissions and are discussed in the 2016 Integrated Energy Policy Report (IEPR). Furthermore, the 2016 IEPR addresses concerns about ongoing leaks that occur throughout the natural gas system, including extraction, transmission, distribution, and end use. Ongoing research is aimed at identifying and reducing such leaks, and Assembly Bill 1496 (Thurmond, Chapter 604, Statutes of 2016) requires the ARB to monitor methane emissions and conduct a life-cycle analysis of natural gas.

5 SB 350 (Statutes of 2015, chapter 547

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Additional information: http://www.energy.ca.gov/2016_energypolicy/ Applicable Law: California Public Resources Code §§ 25300 et seq.

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

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

Reference Documents

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

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

F. FUNDING

1. Amount Available and Minimum/ Maximum Funding AmountsThere is up to $8,900,000 available for grants awarded under this solicitation. The total and maximum funding amounts for each project group are listed below.

Project Group Available funding

Maximum award amount

Group 1: Exploratory Study of Innovative Methods to Assess Structural Integrity of Levees Protecting Natural Gas Infrastructure in the Sacramento-San Joaquin Delta

$550,000 $550,000

Group 2: Developing Next-Generation Cal-Adapt Features to Support Natural Gas Sector Resilience $1,200,000 $1,200,000

Group 3: Chemical and Isotopic Fingerprints of Natural Gas Basins to Support Full Fuel Cycle Accounting $550,000 $550,000

Group 4: Field Study to Identify and Mitigate Methane Emissions in the Southern Part of the San Joaquin Valley $6,000,000 $6,000,000

Group 5: Identification of Potential Retrofit Opportunities of Buildings in Disadvantaged Communities in an Urban Area in the San Joaquin Valley

$600,000 $600,000

2. Match Funding Requirement

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Match funding is not required for this solicitation. However, applications that include match funding will receive additional points during the scoring phase.

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

“Match funds” do not include: Energy Commission awards, , future/contingent awards from other entities (public or private), 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.

Definitions of “match funding” categories are listed below.

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

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

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

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

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

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

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

o “’Advanced Practice’ Costs” means costs not charged to the Energy Commission that represent the incremental cost difference between standard and advanced practices, measures, and products used to implement the proposed project. For example, if the cost of purchasing and/or installing

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insulation that meets the applicable building energy efficiency standard is $1/square foot and the cost of more advanced, energy efficient insulation is $3/square foot, the Recipient may count up to $2/square foot as match funds.

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

All applicants providing match funds must submit commitment letters that: (1) identify the source(s) of the funds; (2) justify the dollar value claimed; (3) provide an unqualified (i.e., without reservation or limitation) commitment that guarantees the availability of the funds for the project; and (4) provide a strategy for replacing the funds if they are significantly reduced or lost. Please see Attachment 11, Commitment and Support Letter Form. Commitment and support letters must be submitted with the application to be considered.

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 TIME6

Solicitation Release 9/11/2017Pre-Application Workshop 9/26/2017 2:30 p.m.

time]Deadline for Written Questions7 10/2/20179:a.m. time]

5:00 p.m.Anticipated Distribution of Questions and Answers 10/17/2017Deadline to Submit Applications 11/17/2017 5:00 p.m.Anticipated Notice of Proposed Award Posting Date 1/4/2018Anticipated Energy Commission Business Meeting Date 4/11/2018Anticipated Agreement Start Date 5/7/2018Anticipated Agreement End Date December 31, 2021

6 Pacific Standard Time or Pacific Daylight Time, whichever is being observed.7 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 CAO listed in Section H at any time prior to the application deadline. Please see Section H for additional information.

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H. NOTICE OF PRE-APPLICATION WORKSHOP

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

Date and time: September 26, 2017 at 2:30 p.m.Location: California Energy Commission

1516 9th StreetSacramento, CA 95814Hearing Room A (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: 921 179 003Meeting Password: This event does not require a passwordTopic: Pre-application workshop for GFO-17-502 “Enhancing Safety, Environmental Performance, and Resilience of California’s Natural Gas System”

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 Yu Hou at (916) 327-1544.

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

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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 Poneh Jones by e-mail at poneh.jones@energy.ca.gov or (916) 654-4425 at least five days in advance.

I. QUESTIONS

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

Gordon Kashiwagi, Commission Agreement OfficerCalifornia Energy Commission

1516 Ninth Street, MS-18Sacramento, California 95814

Telephone: (916) 654-5131FAX: (916) 654-4423

E-mail: Gordon.Kashiwagi@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 CAO at any time prior the application deadline.

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

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

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

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II. Eligibility RequirementsA. APPLICANT REQUIREMENTS

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

2. Terms and ConditionsEach grant agreement resulting from this solicitation will include terms and conditions that set forth the recipient’s rights and responsibilities. By signing the Application Form (Attachment 1), each applicant agrees to enter into an agreement with the Energy Commission to conduct the proposed project according to the terms and conditions that correspond to its organization, without negotiation: (1) University of California and California State University terms and conditions; (2) U.S. Department of Energy terms and conditions; or (3) standard terms and conditions. All terms and conditions are located at http://www.energy.ca.gov/research/contractors.html.

Failure to agree to the terms and conditions by taking actions such as failing to sign the Application Form or indicating that acceptance is based on modification of the terms will result in rejection of the application. Applicants must read the terms and conditions carefully. The Energy Commission reserves the right to modify the terms and conditions prior to executing grant agreements.

3. California Secretary of State RegistrationAll corporations, limited liability companies (LLCs), limited partnerships (LPs) and limited liability partnerships (LLPs) are required to be registered and in good standing with the California Secretary of State prior to its application 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 application being recommended for approval at an Energy Commission Business Meeting.

4. California-Based Entities Pursuant to California Public Resources Code Section 25620.5(h), the Energy Commission’s Natural Gas Program must give priority to “California-Based Entities” (CBEs) when making awards. California Public Resources Code Section 25620.5(i) defines “CBE” as a corporation or other business entity organized for the transaction of business that either:

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

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

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

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

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

funds awarded.

5. Disadvantaged CommunitiesIn 2012, the Legislature passed Senate Bill 535 (De León) directing that, in addition to reducing GHG emissions, a quarter of the proceeds from the Greenhouse Gas Reduction Fund must also go to projects that provide a benefit to disadvantaged communities. The legislation gives the California Environmental Protection Agency responsibility for identifying those communities. For more information on disadvantaged communities and to determine if your project is in a disadvantaged community, use the California Communities Environmental Health Screening tool (CalEnviroScreen 3.0): https://oehha.ca.gov/calenviroscreen/report/calenviroscreen-30.

While it is not required to complete the project within a disadvantaged community, demonstrations in disadvantaged communities are encouraged and will be considered under the scoring criteria for this GFO.

B. PROJECT REQUIREMENTS

1. Project Focusa) Group 1: Exploratory Study of Innovative Methods to Assess Structural Integrity

of Levees Protecting Natural Gas Infrastructure in the Sacramento-San Joaquin Delta - $550,000

Levees in the Sacramento-San Joaquin Delta were built as simple peat dikes resting on marsh soils and are vulnerable to damage from floods, wave action, seepage, subsidence, burrowing animals, earthquakes, and sea level rise.

Development of non-invasive cost-effective technologies to estimate risks of various failure modes would provide ratepayer benefits in the form of reliable natural gas supply and operations to both core and noncore customers. Research under this project group has gained importance because of PG&E’s plans to restructure its natural gas storage facilities, involving shutting down smaller storage units at Los Medanos and Pleasant Creek and focusing operations on McDonald Island. While the independent storage providers will carry out responsibilities for reliable gas delivery to core customers, the gas storage at McDonald Island will serve a wider range of noncore customers, including electric generators and industrial customers.

Research under this group will complement the Energy Commission’s on-going efforts in this area. The previously awarded project under agreement 500-14-001 focuses exclusively on risks associated with overtopping due to levee subsidence.8

The funded project will develop and test innovative noninvasive/nondestructive method(s) to assess the structural integrity of levees in the Sacramento-San Joaquin Delta that protect natural gas infrastructure to clarify risks of a variety of failure modes, in addition to overtopping. Application of noninvasive methods, such as electromagnetic induction, electrical resistivity,

8 http://www.energy.ca.gov/business_meetings/2014_packets/2014-08-27/Item_11_500-14-001_US_Geological_Survey.pdf

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capacitively-coupled resistivity, ground penetrating radar, or other noninvasive technologies, could provide improved characterization of spatial variability of soil deposits associated with levees protecting natural gas infrastructure.

Applicants must respond to all of the following in the sections 1:Technical Merit and Need and 2: Technical Approach in Project Narrative (Attachment 4):

Identify high-risk levees protecting natural gas infrastructure

Develop and test noninvasive techniques to identify and characterize potential structural risks associated with levees in the Delta.

Test the selected methods in actual levees protecting natural gas infrastructure in the Delta.

Prepare a business case analysis of benefits and costs of a comprehensive large-scale implementation of the technology assessed during the study for levees directly or indirectly protecting critical natural gas infrastructure in the Delta.

b) Group 2: Developing Next-Generation Cal-Adapt Features to Support Natural Gas Sector Resilience - $1,200,000

This project group will support research developing next-generation enhancements to Cal-Adapt. Prior and ongoing development of Cal-Adapt has been accomplished through Energy Commission funding to the University of California, Berkeley’s Geospatial Innovation Facility (e.g., prior agreements 500-12-013 and ongoing agreements 500-14-003, EPC-15-008).9,10,11

Current funding from the Energy Commission covers visualization of scenarios underlying the assessment, as well as limited visualizations of results derived from EPIC funding (for example, probabilistic forecasts), additional funds are needed to expand the breadth of visualizations and to move to the "next step" of offering tools for probing natural gas sector vulnerability and resilience. The proposed research will deliver several high-resolution data sets, “next-generation” tools that integrate results of California’s Fourth Climate Change Assessment, a data download tool with preprocessing features to assist in implementing AB 2800 (which will require calculating specific climate-related parameters to support engineering design/infrastructure planning). It will also provide a larger data infrastructure to accommodate the rapidly growing number of data resources, and will begin investigating “big data” solutions that will enable Cal-Adapt to maintain usability while vastly expanding computational power.

Applicants must respond to all of the following in the sections 1:Technical Merit and Need and 2: Technical Approach in The Project Narrative (Attachment 4): must discuss the following in the sections identified:

Incorporate high-resolution geospatial data related to climate vulnerability of the natural gas system and ratepayers, including population projections, land use/land cover, and very high-resolution hydrological data from the United States Geological Survey [USGS] or other sources.

Develop tools based on results of California's Fourth Climate Change Assessment. To support action based on those research results, the proposed work will involve collaborating with IOUs to identify and deliver specific tools and visualizations that

9 http://www.energy.ca.gov/publications/displayOneReport.php?pubNum=CEC-500-2016-012 10 http://www.energy.ca.gov/business_meetings/2015_packets/2015-04-08/Item_15_500-14-003_UC_Berkeley.pdf 11 http://www.energy.ca.gov/business_meetings/2015_packets/2015-11-12/Item_12%20EPC-15-008%20Regents%20of%20the%20University%20of%20California%20Berkeley.pdf

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deliver information to feed directly into their operations, management, and planning processes.

Enhance data download tools to include preprocessing of data and to provide data in GeoTIFF and netCDF formats and text files so a variety of natural gas sector stakeholders can directly query for specific subsets of data to vastly simplify their analyses and processing.

Develop methods to scale up Cal-Adapt, so natural gas sector IOUs and other natural gas stakeholders can leverage big data (for example, datasets related to operations and/or consumption, or datasets related to projected or historical observed climate) through the Cal-Adapt platform.

Be able to work cooperatively with the main host of Cal-Adapt being selected as part of GFO-16-311 (Advancing the Resilience and Environmental Performance of California’s Electricity System).

c) Group 3: Chemical and Isotopic Fingerprints of Natural Gas Basins to Support Full Fuel Cycle Accounting - $550,000

This project group will develop an analytical method that will enable distinguishing between natural gas samples from different basins in the United States based on their chemical composition and distribution of element isotopes. This is crucial because the current life cycle assessments assume that all natural gas basins in the United States produce the same amount of GHG emissions. This assumption is problematic because different production basins have substantially different methane emissions profiles. Previous research results have shown that analysis of isotopic distribution is a feasible method for identification of the petroleum sources. However, analogous work has not yet been undertaken for natural gas.

The analytical approach developed under this project group would enable the attribution of natural gas consumed in California to its origin based on its chemical “fingerprints.” Validated experimental results will be compiled in a publicly available database and could be used to improve the life-cycle assessments of GHG emissions from natural gas imported to California.

Moreover, this research will support Assembly Bill 1496 (Thurmond, Chapter 604, Statutes of 2015), which requires developing the scientific knowledge base to support “carrying out a life-cycle greenhouse gas emission analysis of natural gas produced and imported into the state using the best available and cost-effective scientific and technical methods”. Ability to link the imported natural gas to the producing basins would improve the accuracy and usefulness of the life-cycle assessment methodology.

Applicants must respond to all of the following in the sections 1:Technical Merit and Need and 2: Technical Approach in The Project Narrative (Attachment 4): must discuss the following in the sections identified:The Project Narrative (Attachment 4) must discuss the following in the sections identified:Design and execute a field campaign to collect natural gas samples from different basins in the United States, as well as basins in California that serve or could potentially serve the California market.

Perform quantitative and qualitative sample analysis using chromatographic and spectroscopic methods or alternative techniques that are appropriate in this context.

Develop new chemical and isotope measurement techniques if necessary.

Establish an evaluation method to differentiate between natural gas samples originating from various basins.

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Compile a database with chemical fingerprint information for various natural gas samples.

Test the method used to analyze natural gas consumed in California and determine the basin or combination of natural gas basins from which the natural gas originated.

Perform a preliminary estimation of GHG emission contributions from natural gas depending on the origination based on published studies on GHG emissions from different basins.

d) Group 4: Field Study to Identify and Mitigate Methane Emissions in the Southern Part of the San Joaquin Valley– $6,000,000

Knowledge about the sources, distribution, and activities associated with methane (CH4) emissions from California’s natural gas system is critical to reduce the financial losses for gas companies and ratepayers and to minimize the environmental impacts from these emissions. A study sponsored through the Environmental Defense Fund (EDF) estimated that oil and gas field operators in U.S. are losing $2 billion annually natural gas that has leaked and has never been delievered to ratepayersfrom leakage.12 Under assumption that the average leakage rate from well to city for the USA as a whole is 2.4% as suggested by Alvarez 2016,13 California ratepayers may be paying over $280 million for the natural gas that never reaches their homes, building, and industries.14 Since California imports 90% of the natural gas consumed within the state, a national average of emission rates may be applicable from an energy policy perspective.

The main component of natural gas is methane, which is a potent greenhouse gas with a global warming potential (GWP) 25 over a 100-year time span and GWP 72 over a 20-year time span. Kern County is the major hub of the state’s oil and gas production with approximately 85,000 active dry gas and associated wells. According to an NRDC report, nearly 5.4 million Californians live within a mile of an oil or gas well. 15 One-third of that group live in communities that already experience a disproportionate amount of the state’s air, water and soil pollution, and nearly 92 percent of residents in these communities are people of color. Mitigation of methane emissions from the oil and gas industry has the co-benefit of reducing volatile organic compounds (VOCs), some of which are toxic air contaminants.

Recent scientific publications offer growing evidence that a handful of natural gas facility/unit sites, so-called “super-emitters”, could be responsible for a majority of the emissions. According to the findings from EDF-funded research outside California, 1% of natural gas production sites could account for 44% of total emissions from all sites, and 10% of sites could account for 80% of emissions.16 Two approaches utilized by Zavala-Araiza et al. show a discrepancy between the component-based numbers17 (total emissions estimated by adding estimates for each one of

12 EDF, “Rising Risk: Improving Methane Disclosure in the Oil and Gas Industry”, 2016. https://www.edf.org/sites/default/files/content/rising_risk_full_report.pdf 13 1 R.A. Alvarez, Presentation at the Energy Commission, “Methane leakage from oil & gas operations: What are we learning?” 2016. http://docketpublic.energy.ca.gov/PublicDocuments/16-IEPR-02/TN211769_20160609T124637_Methane_leakage_from_oil__gas_operations_What_are_we_learning.pdf14 Annually natural gas expenditures in 2014: https://www.eia.gov/state/seds/data.cfm?incfile=/state/seds/sep_sum/html/sum_ex_tx.html&sid=US 15 NRDC, “Drilling in California: Who’s at Risk?” October 2014. https://www.nrdc.org/sites/default/files/california-fracking-risks-report.pdf 16 D. Zavala-Araiza, “Super-emitters Are Real: Here Are Three Things We Know”, 2017. http://blogs.edf.org/energyexchange/2017/01/16/super-emitters-are-real-here-are-three-things-we-know/ 17 D. Zavala-Araiza et al., “Super-emitters in natural gas infrastructure are caused by abnormal process conditions”, Nature Communications 8, Article number: 14012 (2017). doi:10.1038/ncomms14012

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the components of a system) and the site-based estimates18 (total emissions estimated for the entire system using a research aircraft or other “top-down” methods). Lower estimates for research focused on specific components of natural gas system only suggests that the actual emissions from “super-emitters” are not captured. Energy Commission-sponsored research and other efforts for California have reported similar findings at the component level (agreement #500-14-072 with CSU Fullerton,, agreements #500-12-006 and #500-13-005 with UCD), and agreement #500-11-027 with LBNL). These results suggest that “super-emitters” can emit intermittently and thus, are difficult to detect. Recent research studies funded by the Energy Commission and others provide strong evidence that “super-emitters” cannot be predicted a-priori based on age or type of equipment and other parameters. A recent EDF study conducted in Wyoming and North Dakota came to similar conclusions.19

Intermittency of “super-emitters” and their conceivable distribution over large geographical areas advocates for conducting continuous or frequent remote sensing methane surveys. In addition, distributed sources of emissions, such as those associated with fuel consumption in urban areas, can contribute significantly to total emissions but may be difficult to characterize with sporadic field studies. Preliminary results from a study on methane emissions from about 70 homes in California (agreement with LBNL #500-13-008) has shown that a handful of homes emit by far more methane than the average home, and therefore indicate the presence of “super-emitters” or at least high-emitting point sources in the residential sector. Another recently completed PIER project indicates that emissions in urban areas can be as high as 0.5% of total natural gas consumption in the San Francisco Bay Area, which is much higher than the emissions reported by the San Francisco Bay Area management District.20 Other groups have found even higher emissions in Los Angeles. One recent study reports that overall CH4 emissions from natural gas system in the Los Angeles area are equivalent to about 1.6% of total natural gas consumption.21 However, this high emission rate in comparison to the San Francisco Bay Area may be due to the proximity to crude oil and natural gas production sites in the Los Angeles area. Additionally, PIER Natural Gas research projects suggest that production sites and abandoned wells should be considered for a field survey of methane leaks as well.

Although the innovative, low-cost techniques and instruments for remote methane sensing and quantification have been developed and tested under the research umbrella of the MONITOR program administered by the Advanced Research Projects Agency-Energy (ARPA-E) and few other similar programs such as the EDF’s Methane Detector Challenge, there is still an urgent need to validate their effectiveness for identification of methane emissions and to develop a methodology that would track emissions and readily identify hot spots with high methane emissions.22 This methodology would be applicable to different regions in California.

The goal of this research is to conduct continuous or frequent remote sensing methane surveys in strategically chosen areas that are composed of urban areas and areas with natural gas production sites to identify and characterize methane emissions from the natural gas system in a comprehensive fashion. The study must consider disadvantaged communities that have been disproportionally impacted by the environmental issues arising from natural gas 18 D. Zavala-Araiza et al., “Reconciling divergent estimates of oil and gas methane emissions”, PNAS, 2015, 112(51), 15597–15602. http://www.pnas.org/content/112/51/15597 19 D. Lyon et al., “Aerial Surveys of Elevated Hydrocarbon Emissions from Oil and Gas Production Sites”, Environ. Sci. Technol., 2016, 50 (9), 4877–4886. DOI: 10.1021/acs.est.6b0070520 S. Jeong et al., “Estimating methane emissions from biological and fossil-fuel sources in the San Francisco Bay Area”, Geophysical Research Letters, 2017, 44(1), 486–495. DOI: 10.1002/2016GL07179421 D. Wunsch et al., “Quantifying the loss of processed natural gas within California’s South Coast Air Basin using long-term measurements of ethane and methane”, Atmos. Chem. Phys., 16, 14091–14105, 2016. DOI: 10.5194/acp-16-14091-201622 https://arpa-e.energy.gov/?q=arpa-e-programs/monitor

September 2017 Page 19 GFO-17-502

system.23,24 The campaign will use and test several novel low-cost systems for methane leak detection and validate their effectiveness for detecting continuous and intermittent methane emissions with other research-grade methods. The overall goal is that the prorated costs of a large scale implementation of the system or systems resulting from this study will be equivalent to no more than 0.10% of the total annual natural gas expenditures for final consumption.

Verification of measurement results will be an important component of the study requiring a close collaboration between research team and Investor Owned Utilities (IOUs). The study will suggest, at the end, the best strategies for cost-efficient methane emissions tracking in relatively large areas.

Applicants must respond to all of the following in the sections 1:Technical Merit and Need and 2: Technical Approach in The Project Narrative (Attachment 4): must discuss the following in the sections identified:The Project Narrative (Attachment 4) must discuss the following in the sections identified:

Geographical Requirements:

Target, at a minimum, the two general areas identified in Figure 1 (Insets A and B) located near Bakersfield, CA to encompass residential, commercial, and industrial facilities using natural gas and also include some associated NG/oil fields (both active and abandoned/idle). Other study areas may be proposed as long they are located in the southern part of the San Joaquin Valley and have similar characteristics.

Requirements for Community Participation:

Include substantial collaborative work on environmental justice and equity issues. Grant Recipient must develop an outreach plan to the community based organizations to identify the information/data that would be useful for the relevant community/ies. This arrangement will ensure that the potential benefits to the targeted area resulting from the study are also considered important by the community. Additionally, it will help to form partnerships crucial to potential future demonstration projects, based on this initial field study.

Figure 1: Potential areas of study in southern part of the San Joaquin Valley with the Inset A showing area surrounding Elk Hills gas-fired power plant with high concentration of active dry wells and Inset B shows residential area near Bakersfield.

23 Environmental Justice: https://www.arb.ca.gov/cc/ejac/ejac.htm24 Community health program: https://www.arb.ca.gov/ch/ch.htm

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Technical Requirements:

Conduct a series of continuous field measurements using various combinations of innovative, low-cost methane detection systems to determine the distribution of methane point sources, such as compressor stations, production facilities, metering stations, and industrial facilities.

The research team should deploy a combination of at least three monitoring systems to identify and measure methane emissions. These systems could include instruments and systems developed under the ARPA-E MONITOR program as well as other promising research-grade, innovative, and low-cost technologies.

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Grant proposals must include a draft detailed data collection plan and data quality assurance plan designed to demonstrate the likelihood of obtaining reliable data for each of the geographical research areas. The final plans will be developed based on the input from the Energy Commission.

Propose an open research study that will allow the contributions of other research teams or funding entities using their own resources as long as they are not disruptive to the overall Energy Commission study.

Measure methane emissions to obtain at least one year’s worth of data to determine temporal variation in flow rates and possibly the emissions’ attribution to specific operations/activities. The data can be collected continuously or with a frequency providing a sufficient foundation for data analysis.

Evaluate the quality of collected data by comparing against the data from controlled methane releases provided by the IOUs, which may occur at randomly selected locations and for variable durations. The controlled test site will have attributes of flow rate, weather and wind conditions, as well as other parameters that influence methane emission quantification. The Energy Commission will try to ensure that IOUs collaborate on these releases. Grant proposals must include an explanation on how they will incorporate controlled releases in proposed studies.

Evaluate, when applicable, the effectiveness of the leak determination compared to the Method 21 that is already implemented by ARB for detection of VOCs and methane. 25

Obtain as much ancillary data as possible that may explain measured methane emissions. For example, elevated emissions from a compressor station may coincide with its operational stand-by, emergency shutdown testing, or other “blowdown” conditions.

Summarize and analyze the advantages and drawbacks of different sets of methane detection techniques and systems and develop a methodology for a scalable, cost-effective, and continuous monitoring system applicable to other regions in California. The summary must evaluate the emissions measurement capability, maturity, cost-competitiveness, and scalability of different technologies and their combinations.

Estimate the mitigation costs associated with different levels of emissions, control options, identification of leaks, and other factors at play in California, such as mandated emission reductions (e.g. recent report about the cost of control for compressor stations associated with transmission lines and underground storage facilities). 26 The mitigation cost analysis must cover the San Francisco Bay, the Los Angeles region, and the Central Valley of California. It is understood that the estimated costs will be approximate, because there are uncertainties when using information from one region to other geographical regions.

Measurement and Verification PlanInclude a Measurement and Verification Plan in the Project Narrative (Attachment 4) describing the process that will be used for quality control of the field study.

25 https://www.arb.ca.gov/testmeth/vol1/Meth21_clean.pdf 26 Mayfield, E. R., A. L. Robison. J. L. Cohon (2017). System-wide and Superemitter Policy Options for the Abatement of Methane Emissions from the U.S. Natural Gas System. ES&T.

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e) Group 5: Identification of Potential Retrofit Opportunities of Buildings in Disadvantaged Communities in an Urban Area in the San Joaquin Valley - $600,000

Senate Bill 350 continues, enhances, and expands the existing building energy efficiency program established by Assembly Bill 758 and mandates doubling the state’s energy efficiency savings potential by 2030.27,28 Existing challenges inhibit energy efficiency upgrades of low-income multiunit rental properties. One of them is the multi-layered financing with lien structures effectively limiting energy efficiency retrofit opportunities to once every 15-25 years.29 Additional hurdles and barriers for implementation of the Existing Building Action Plan and achievement of targets as required by SB 350 are summarized in the Energy Commission final report “Low-Income Barriers Study, Part A: Overcoming Barriers to Energy Efficiency and Renewables for Low-Income Customers and Small Business Contracting Opportunities in Disadvantaged Communities.”30,31

This project group will fund research identifying pathways to increase energy efficiency and cost-effectively minimize climate change impacts for targeted buildings using natural gas for space and water heating in Disadvantaged Communities located in the San Joaquin Valley. Natural gas consumption will be estimated based on large data sets that include energy bills for individual homes/buildings, home/building physical characteristics, location, and other factors. This project is designed to complement a project group under EPIC solicitation GFO-16-311 that includes similar research components for the electricity system (http://www.energy.ca.gov/contracts/GFO-16-311/).

Applicants must respond to all of the following in the sections 1:Technical Merit and Need and 2: Technical Approach in The Project Narrative (Attachment 4): must discuss the following in the sections identified:The Project Narrative (Attachment 4) must discuss the following in the sections identified:

Study at least one urban area in the San Joaquin Valley served by an IOU that includes one or more Disadvantaged Communities. The study must compare potential energy and non-energy benefits in Disadvantaged Communities and Non-Disadvantaged Communities.

Compile and evaluate “big data” for this area composed of monthly energy bills, building characteristics, weather conditions, etc. to evaluate existing building stock and to identify locations where retrofitting activities will result in the most energy and non-energy savings to the ratepayers.

Develop a comprehensive action plan on improving opportunities for energy efficiency, renewable energy, demand response, energy storage, and electric vehicle infrastructure for multifamily housing, including pilot programs for multifamily rental properties in low-income and disadvantaged communities.

27 https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201520160SB350 28 https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201720180AB758 29 http://docketpublic.energy.ca.gov/PublicDocuments/16-OIR-02/TN213843_20160929T152126_Maria_Stamas_Comments_Comments_of_the_GREENEnergy_Efficiency_fo.pdf. 30 http://docketpublic.energy.ca.gov/PublicDocuments/16-EBP-01/TN214801_20161214T155117_Existing_Building_Energy_Efficency_Plan_Update_Deceber_2016_Thi.pdf 31 http://docketpublic.energy.ca.gov/PublicDocuments/16-OIR-02/TN214830_20161215T184655_SB_350_LowIncome_Barriers_Study_Part_A__Commission_Final_Report.pdf

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Establish a technical advisory committee to align future low-income building retrofit programs with the latest market trends and industry best practices composed of clean energy finance representatives, information technology experts, building property owners, and community representatives.

Ensure that developed building retrofit strategies will not generate new indoor health issues or worsen existing air quality. Consider the potential that energy-efficiency updates (retrofits) of older buildings could generate mold-causing dampness, poor ventilation, excessive temperatures, and emissions from building materials that may contribute to health problems.32,33

Develop a publicly available tool that would enable estimation of non-energy benefits, such as GHG emissions reduction and energy savings, based on the developed options/scenarios for building retrofit.

If applicable, must work cooperatively with the research team selected for the project Group 2 under GFO-16-311 (http://www.energy.ca.gov/contracts/GFO-16-311/) that has a similar component for retrofits applicable to the electricity sector.

32 Climate Change, the Indoor Environment and Health, The National Academies Press. https://www.nap.edu/read/13115/chapter/10#21033 Energy Savings Plus Health: Indoor Air Quality Guidelines for Multifamily Building Upgrades, EPA. https://www.epa.gov/sites/production/files/2016-02/documents/esh_multifamily_building_upgrades_508c_02_09_2016.pdf

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

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

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

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

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

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

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

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

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

Page Limit Recommendations

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

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

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

pages, excluding the cover page

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

There are no page limits for the following:o Application Form (Attachment 1)o Budget Forms (Attachment 7)o CEQA Compliance Form (Attachment 8)o Contact List Template (Attachment 10)O California-Based Entity Form (Attachment 12)

Number of Copies of the Application

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

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B. PREFERRED METHOD FOR DELIVERY

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

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

C. HARD COPY DELIVERY

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

U. S. Mail In Person Courier service

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

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

Packaging and LabelingAll hard copy applications must be labeled "Grant Funding Opportunity GFO-17-502," and include the title of the application.

Include the following label information on the mailing envelope:

September 2017 Page 26 GFO-17-502

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

GFO-17-502Contracts, Grants, and Loans Office, MS-18California Energy Commission1516 Ninth Street, 1st FloorSacramento, California 95814

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

2. Label the proposal application cover “Grant Funding Opportunity GFO-17-502” 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 (requires signature)12 California-Based Entity (CBE) Form

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

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

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

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quantified, and measured; and a description of the project tasks and overall management of the agreement.

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

4. Project Narrative Form (Attachment 4) This form will include the majority of the applicant’s responses to the Scoring Criteria in Section IV.

a. Group Specific Questions (optional) Include required group specific information (see Section II.B.1) 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 personnel34 assigned to the project, including the project manager and principal investigator (if applicable), and individuals employed by any major subcontractor (a major subcontractor is a subcontractor receiving at least 25% of Commission funds or $100,000, whichever is less). Clearly describe their individual areas of responsibility. Include the information required for each individual, including a resume (maximum two pages, printed double-sided).

6. Scope of Work Template (Attachments 6 and 6a)Applicants must include a completed Scope of Work for each project, as instructed in the template. The Scope of Work identifies the tasks required to complete the project. It includes a project schedule that lists all products, meetings, and due dates. All work must be scheduled for completion by the anticipated agreement end date specified in the “Key Activities Schedule” in Part I.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(i) prevailing wages are paid; and

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

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

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

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

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

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

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

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

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

1) Commitment Letters

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

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 test/ demonstration/ deployment site.

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

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IV. Evaluation and Award Process A. APPLICATION EVALUATION

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

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

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

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

1. Ranking and Notice of Proposed 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 CAO 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.

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

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

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

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

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

C. GROUNDS TO REJECT AN APPLICATION OR CANCEL AN AWARD

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

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

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

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

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

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

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

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

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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 CAO 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.

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

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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. 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 NG IOU service territory (PG&E, SDG&E, or SoCalGas Co.).

Pass Fail N/A

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

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

Pass Fail

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

Pass Fail

9. (The proposal includes one or more support letters. When a site commitment letter is required (Section III.D.11), the proposal includes this letter. All letters are prepared as specified in Attachment 11.

Pass Fail

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

Pass/Fail

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

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

10. Project Group 5 only: Proposed study includes at least one urban area in the San Joaquin Valley that is served by an NG IOU and includes Disadvantaged Communities.

Pass Fail

F. STAGE TWO: APPLICATION SCORING

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

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

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

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SCORING SCALE

% of Possible Points Interpretation Explanation for Percentage Points

0% Not Responsive

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

unacceptable.

10-30% Minimally Responsive

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

minimally acceptable.

40-60% Inadequate

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

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

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

acceptable.

80% Good

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

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

90% Excellent

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

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

100% Exceptional

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

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

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SCORING CRITERIA

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

Scoring Criteria Maximum Points

1. Technical Merit and Needa. Clearly and plausibly describes how proposed research will address the

research needs listed under II B. Projects Requirements on pages 15-24 in this solicitation manual for the chosen project group 1-5.

b. Provides a clear and concise description of the goals, objectives, technological or scientific knowledge advancement, and innovation in the proposed project.

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 natural gas R&D program funding, including an explanation of why the proposed work is not adequately supported by competitive or regulated markets.

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

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

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

20

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

performing the proposed work to meet the requirements for the research needs for chosen project group 1-5 as identified under II B. Projects Requirements on pages 15-24 in this solicitation manual.

b. .Highlights any outstanding features that will go beyond the project requirements listed under II B. Projects Requirements on pages 15-24 in this solicitation manual.

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

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

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Scoring Criteria Maximum Points

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

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

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

G. (Optional) Provides information described in Section II.B.1.

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

respect to goals of lower costs, and/or increased safety).

b. Provides clear, plausible, and justifiable quantitative estimates of potential benefits for California NG IOU ratepayers, including the following (as applicable): annual thermal savings (therms), energy cost reductions, GHG emission reductions, and/or air emission reductions (e.g., NOx).

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 NG IOU 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.

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 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

10

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Scoring Criteria Maximum Points

(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

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.

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September 2017 Page 40 GFO-17-502

Scoring Criteria Maximum Points

6. PIER Natural Gas Funds Spent in CaliforniaProjects that spend PIER natural gas 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 natural gas R&D program 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 compares 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 criteria, the Energy Commission will include the facility charges (e.g., rent, utilities, etc.), burdens and other like costs that are budgeted as direct costs into the indirect costs in the formula.

5

Total Possible Points(Minimum Passing Score is 70) 100

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

8. Match Funding

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

10

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Scoring Criteria Maximum Points

amount divided by the total amount of PIER natural gas funds requested. This ratio will be multiplied by 5 to yield the points, and rounded to the nearest whole number.For example: If requested PIER natural gas funds are $1,000,000 and the applicant pledged $500,000 in match funding, the match funding ratio is 0.5. (5 x 0.5 = 2.5 points).5 points will be awarded based on the level of commitment and will consider type of match funding (cash in hand funds will be considered more favorably than other types of match funding), dollar value justification, and funding replacement strategy described in the match funding commitment letter for the pledged amount of match funding (see Attachment 11). The proposal scoring scale in Section F will be used to rate these criteria.

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

9. Disadvantaged CommunitiesProjects with all test or demonstration sites located in disadvantaged communities must justify how the project will benefit the disadvantaged community in order to receive additional points.

A disadvantaged community is identified by census tract and represents the 25% highest scoring tracts in CalEnviroScreen 3.0 or later versions.35

5

35 https://oehha.ca.gov/calenviroscreen/report/calenviroscreen-30

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Scoring Criteria Maximum Points

10. California Based Entities (CBE) Preference PointsA CBE is a corporation or other business form organized for the transaction of business that either: Has its headquarters or an office in California AND manufactures in

California the product that is the subject of the award; OR Has an office for the transaction of business in California AND

substantially manufactures the product or substantially performs the research within California that is the subject of the award.

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

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

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

Projects that meet these requirements will receive preference points as indicated below:Percentage of PIER Natural Gas Funds Allocated to CBEs(derived from budget attachment “Category Budget”)

Percentage of Possible Points

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

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