GFO-25-307 - Direct Air Capture Pre-Commercial Demonstration and Community Engagement

GRANT FUNDING OPPORTUNITY

Direct Air Capture Pre-Commercial Demonstration & Community Engagement

CRISP Program

GFO-25-307

State of California

California Energy Commission

May 2026

I. Introduction 1

A. Purpose of Solicitation 1

B. Key Words/Terms 2

C. Project Focus 5

D. Funding 10

E. Key Activities Schedule 11

F. Notice of Pre-Application Workshop 12

G. Questions 12

H. Applicants' Admonishment 13

I. Additional Requirements regarding environmental review 14

J. Background 15

K. Match Funding 18

L. Funds Spent in California 20

II. Eligibility Requirements 22

A. Applicant Requirements 22

B. Project Requirements 23

III. Application Submission Instructions 29

A. Application Format, Page Limits 29

B. Method For Delivery 29

C. Application Content 30

IV. Evaluation and Award Process 35

A. Application Evaluation 35

B. Ranking, Notice of Proposed Award, and Agreement Development 35

C. Grounds to Reject an Application or Cancel an Award 36

D. Miscellaneous 37

E. Stage One: Application Screening 40

F. Stage Two: Application Scoring 42

I. Introduction

Purpose of Solicitation

This solicitation supports the development and deployment of advanced direct air capture (DAC) carbon dioxide removal (CDR) technologies through pre-commercial pilot and demonstration projects under real-world conditions. DAC technologies hold significant potential for scalable, measurable, and verifiable removal of legacy greenhouse gas (GHG) emissions, making them a critical pathway toward long-term carbon neutrality. However, DAC technologies continue to face persistent challenges related to cost, energy intensity, and integration into broader energy and environmental systems. To address these challenges, there is a need to advance and validate DAC technologies across a spectrum of pre-commercial maturity levels under real-world conditions to improve performance, reduce costs, and support large-scale deployment. These efforts will be essential to improving the feasibility, effectiveness, and environmental performance of these technologies.

Projects must be at a technology readiness level (TRL) of 6 or greater, indicating the technology has moved beyond basic research and lab-scale validation, with the goal of advancing one or more levels by the project's conclusion. Proposed projects must demonstrate DAC as a primary driver of performance outcomes. Technologies must be supported by prior testing in representative environments and performance data demonstrating engineering feasibility and system integration.

Projects are required to partner with an entity representing the host community (see Section I.C for additional details). Projects are strongly encouraged to expand partnerships to include local interested parties and community-based organizations to enhance project delivery and support lasting benefits over the project term and beyond. This is especially important for projects located in or near disadvantaged communities, where equitable outcomes and strong local climate and economic resilience are critical. Projects are also encouraged to partner with industrial and other relevant entities that can support successful project execution, particularly with respect to permitting and environmental review. Partnerships that involve or provide direct or indirect benefit to enhanced oil or gas recovery activities are not eligible under this solicitation.

To the extent that an awarded project aligns with future cost-sharing opportunities with other entities (public or private), it may leverage the California Energy Commission (CEC) award to expand its scope or enhance its impact. If there are any necessary adjustments to the project scope, budget, or both that are warranted after selection by CEC to align with other complementary funding opportunities, such changes may be requested for consideration.

See Sections I and II of this solicitation for eligibility requirements. Applications will be evaluated as described in Section IV of this solicitation. Applicants may submit multiple applications, If an applicant submits multiple applications t, each application must be for a distinct project (i.e., no overlap with respect to the technical tasks described in the Scope of Work).

Key Words/Terms

Project Focus

This solicitation focuses on funding pre-commercial DAC projects with a TRL of 6 and greater. Priority will be given to projects that begin at higher TRLs and with larger initial scales (based on the core performance metrics below) and/or can reasonably achieve greater technical and performance gains over the course of the project agreement. Proposed projects must demonstrate integrated DAC system-level or subsystem operation under environmentally relevant operational conditions reflecting real-world ambient CO2 concentrations, with the DAC system serving as the primary source of project outcomes and the principal contributor to performance metrics. DAC systems may be deployed as stand-alone installations or integrated with other CDR pathways, industrial operations, and/or grid-responsive energy systems, excluding point-source capture and oil and gas operations, provided such integration does not diminish the DAC subsystem's central role in determining performance outcomes.

Key Performance Metrics (minimum required targets by project completion):

Capture cost $450/metric ton (MT) carbon dioxide (CO2)

Energy consumption (combined electric and thermal energy) 1,400 kilowatt-hour (kWh) per metric ton (MT) of CO2

Net CO2 removal capacity 500 MT/year

Proposed projects must allocate at least 7 percent of CEC funds to community engagement, including outreach, education, and sustained involvement of affected communities. Projects sited within or near a community or service area must directly benefit that community and/or the corresponding California tribal organization. Priority will be given to applications that can evaluate and mitigate broader environmental and community impacts, including air emissions, water use, waste generation, material toxicity, and community health effects.

Applications that include a detailed clean energy procurement plan will receive preference points. The plan must describe sourcing of low- or zero-carbon electricity, thermal energy, or fuels; strategies for demand flexibility; and integration with DAC operations. Preference will be given to projects demonstrating a credible, cost-effective, and scalable approach that minimizes emissions and supports grid reliability.

Project Narrative:

The Project Narrative (Attachment 2) must discuss the following in the sections identified and include references and assumptions to justify responses.

Technical Merit:

Describe the DAC system design in sufficient detail to support technical evaluation, including capture and separation mechanisms, resource requirements (electricity, heat, water, feedstocks), land use considerations, and an overall process flow diagram.

Demonstrate that the DAC technology meets minimum TRL eligibility (6) using project-specific, verifiable evidence of system-level operation under relevant conditions, including subsystem contributions. In addition, describe how the proposed project will progress the technology by at least one TRL by the end of the agreement.

Provide system-level performance data and baseline metrics for energy, cost, efficiency, and net CO2 removal, along with a credible plan for TRL advancement, key technical milestones, barriers, and projected improvements aligned with key performance expectations.

Describe how the proposed DAC technology advances the state of the art, including quantifiable advantages in efficiency, emissions performance, cost trajectory, durability, reliability, and operability. Explain alignment with California's statutory energy and climate goals.

Submit a technology performance validation plan including performance metrics; data collection methods and evaluation timeline.

Identify key technical and economic barriers to scale-up and commercialization and explain how CEC funding will directly address these barriers.

Address environmental and operational considerations, including emissions, risks, hazardous materials, and durability. Include available life-cycle assessment (LCA) and techno-economic analysis (TEA) results. Projects with more complete, project-specific analyses will be considered favorably.

Describe carbon disposition and management plans, including transport logistics and permanent sequestration or utilization, supported exclusively by non-CEC funding and consistent with eligibility constraints.

Provide demonstration site details, including permit and CEQA compliance status; lead agency information; expected timelines; and any co-location with carbon storage, utilization, or clean energy infrastructure.

NOTE: Applicants are required to provide a current baseline for each performance metric, supported by project-specific evidence such as integrated subsystem testing, prototype performance, or operational data in conditions relevant to the proposed project. Applicants must also provide a tangible plan describing how the proposed project will achieve the performance targets listed by the end of the project term. Baselines that are unrealistic or inconsistent with operation at TRL 6 or greater, or that would effectively classify the proposed project as early-stage R&D or a lower-TRL, are not acceptable. Substantiation cannot rely solely on published literature, generalized modeling, or external reports. Applicants must provide project-specific data demonstrating current system performance and realistic projections. Baselines should reflect maturity and demonstrate the capability of the proposed system under relevant or operational conditions.

Technical Approach:

Describe key design, engineering, integration, and operational tasks necessary for successful DAC system deployment.

Provide a detailed and time-bound demonstration plan with system operation, testing conditions, key metrics, data collection, and public reporting. Include defined baselines and targets for net CO2 removal, energy use, and capture cost, and demonstrate expected improvements over the project term.

Detail a technology advancement and transfer strategy describing how proposed activities will advance the DAC system by at least one TRL and support future commercialization and replication.

Describe the availability, sourcing, and manufacturability of key DAC materials and components, including fabrication plans, pricing assumptions, and carbon intensity. Supply-chain feasibility and scalability will be considered favorably.

Describe and justify the selected test location, including site suitability, infrastructure readiness, and alignment with community engagement plans.

Describe expected improvements in system performance, including increased net CO2 removal capacity, improved CO2 purity, reduced resource use, and other measurable success metrics tied to Project Focus performance objectives.

Identify key technical, logistical, and project risks and provide specific mitigation strategies.

Provide a detailed description of TEA and LCA methodologies, including assumptions, boundaries, data sources, and plans for final analysis and business model development.

Provide a CEQA pathway plan that identifies the CEQA lead agency; current review status; anticipated review timeline; required permits and approvals; coordination with permitting agencies and interested parties; and how CEQA activities align with project scheduling, community engagement, and environmental impact mitigation. Projects with advanced permitting readiness will be viewed favorably.

Provide a detailed MRV plan, including the role and activities of an independent third party for verification and covering methods for monitoring CO2 capture, energy use, and resource consumption; reporting frequency and protocols to ensure transparency to regulatory authorities, interested parties, and the public; verification procedures conducted by the independent third party; data management procedures, including storage, quality control, and data sharing; and processes to ensure compliance with all permit conditions and regulatory requirements.

Impacts and Benefits

Community Engagement, Outreach, and Benefits. All proposed projects must:

Allocate no less than 7 percent of CEC funds to community engagement, outreach, and education activities over the full project term to support sustained engagement.

Provide a support letter from an entity representing the host community. Eligible entities include local government agencies, community-based organizations, or recognized advocacy groups that serve the impacted community. Letters from local schools, colleges, or universities may supplement but not substitute for community or tribal support letters. Letters from individuals or institutions without formal ties to the community may supplement but cannot substitute for community or tribal support letters.

Submit a Community Engagement, Outreach, and Education Plan demonstrating sustained, meaningful involvement of local communities throughout the life of the project and, where appropriate, beyond the project term. The plan must be commensurate with project maturity and scope and must include, at a minimum, community identification, engagement approach, outreach and education, community benefits and accountability. The detailed requirements are described in Section II. Eligibility. B. Project Requirements.

Environmental Impacts and Benefits. Proposed projects must identify, assess, and address potential environmental impacts and benefits associated with DAC demonstration at a level appropriate to project scale and maturity. Environmental impacts to be addressed include, but are not limited, to:

Air emissions, including criteria pollutants, GHGs, fugitive emissions, and process byproducts.

Water use, discharge, water quality impacts, and strategies to minimize water consumption and/or use non-potable sources where feasible.

Soil disturbance, land use impacts, and site remediation considerations, where applicable.

Waste generation, handling, treatment, and disposal, including quantities and characteristics of spent sorbents, solvents, and other process byproducts or side streams.

Material toxicity and strategies to minimize environmental risk, including material selection, handling, and end-of-life management.

Public Health Impacts and Benefits. Proposed projects must identify, assess, and address potential public health impacts and benefits associated with DAC deployment at a level appropriate to project scale and maturity. Public and community health considerations include, but are not limited, to:

Identification of potential exposure pathways to chemicals, air pollutants, or other hazards associated with DAC operations.

Risk assessment and mitigation strategies appropriate to project scale and maturity.

Monitoring approaches to track potential impacts on health and safety, including early warning indicators and corrective actions.

Responsiveness to community concerns related to health, safety, and environmental quality.

Integration of environmental and health impact assessments with community engagement activities to ensure transparency and community-informed mitigation measures.

NOTE:

Academic partnerships are eligible forms of community engagement; however, they do not, on their own, fulfill minimum community engagement requirements. Applications must demonstrate that such partnerships are part of a broader engagement approach that includes activities supporting workforce development, community-based research, and the integration of local and traditional knowledge into project design and implementation.

Applicants may leverage and refer to analyses conducted for permitting, CEQA, LCA, or TEA, but must also clearly summarize anticipated impacts, mitigation strategies, and residual risks in this section.

The level of detail in this section should be commensurate with project maturity, with more advanced projects expected to provide more site-specific and quantitative impact assessments where available.

Applications demonstrating strong, quantifiable community benefits to disadvantaged or low-income communities may receive up to 5 preference points.

Team Qualifications, Capabilities, and Resources

The applicant is required to demonstrate that the project team possesses the necessary qualifications, technical capabilities, and resources to successfully execute the project. To that end, the application should address the following requirements:

Define roles and responsibilities across all team members and project phases and ensure that the Project Team Form lists credentials and relevant experience for key personnel (e.g., project manager, principal investigator, technology/knowledge transfer lead).

Describe team coordination structure, management plan, and communication protocols.

Demonstrate experience and prior success developing, operating, and validating DAC, CCUS, or similar pilot test or field-ready demonstrations, including permitting, compliance, and technical data analysis.

Describe relevant expertise in scale-up, project management, policy, and chemical or process engineering, with qualified engineering personnel assigned to lead or support system design, integration, and operational validation.

Demonstrate familiarity with environmental regulations, permitting processes, and carbon management policies.

Describe relevant experience in scaling clean technologies.

Submit letters of support or Memorandums of Understanding from key partners contributing technical expertise, site access, permitting support, or infrastructure such as carbon storage or renewable energy.

Identify the demonstration site and confirm access agreements, including whether its location is within the intended community or tribal service area, and describe available infrastructure (e.g., electrical service, access roads, water supply). Provide documentation confirming site access or agreements for use.

Confirm access to the tools, facilities, and logistical resources needed for system construction, testing, and operation.

NOTE:

CEC will consider the applicant's past performance under prior or active CEC awards as part of the evaluation.

Partnerships with oil and gas industry entities that expand or maintain fossil fuel operations are ineligible.

Funding

Amount Available and Minimum/ Maximum Funding Amounts

There is up to $11,000,000 available for grants awarded under this solicitation. The total, minimum, and maximum funding amounts for each project are listed below.

Match Funding Requirement

Match funding is required in the amount of at least 20 percent of the CEC funds requested. For the definition of match funding, see Section I.K.

Change in Funding Amount

Along with any other rights and remedies available to it, the CEC reserves the right to:

Increase or decrease the available funding and the minimum/maximum grant award amounts described in this section.

Allocate any additional or unawarded funds to passing applications, in rank order.

Reduce funding to an appropriate amount if the budgeted funds do not provide full funding for agreements. In this event, the proposed grant recipient and Commission Agreement Manager (CAM) will attempt to reach agreement on a reduced Scope of Work commensurate with available funding.

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.

Notice of Pre-Application Workshop

CEC staff will hold one Pre-Application Workshop to discuss this solicitation with potential applicants. Participation is optional but encouraged. The Pre-Application Workshop will be held remotely. Applicants may attend the workshop via the internet (Zoom, see instructions below), or via conference call on the date and at the time and location listed below. Please refer to the CEC's website at www.energy.ca.gov/contracts/index.html to confirm the date and time. Please be aware that the meeting will be recorded.

Date and time: May 21, 2026 at 10 am - 12:00 pm

Zoom Instructions:

To join the Zoom meeting, go to https://zoom.us/joinand enter the Meeting ID below and select "join from your browser." Participants will then enter the meeting password listed below and their name. Participants will select the "Join" button.:

Meeting ID: 89525185528

https://energy.zoom.us/j/89525185528?pwd=EQprf1g2tIuKd6vMdHGy3SqzLXhwXK.

Meeting Password: 5142026

Topic: Pre-Application Workshop - GFO-25-307 - Direct Air Capture Pre-Commercial Demonstration & Community Engagement

Telephone Access Only:

Call 1-888 475 4499 (Toll Free) or 1-877 853 5257 (Toll Free). When prompted, enter the meeting number above. International callers may select a number from the Zoom International Dial-in Number List at: https://energy.zoom.us/u/adjzKUXvoy. To comment, dial *9 to "raise your hand" and *6 to mute/unmute your phone line.

Access by Mobile Device:

Download the application from the Zoom Download Center, https://energy.zoom.us/download.

Technical Support for Pre-Application Workshop:

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

please call Zoom Technical Support at 1-888-799-9666 ext. 2. You may also contact the CEC's Public Advisor's Office at publicadvisor@energy.ca.gov, or (916) 957-7910.

System Requirements: To determine whether your computer is compatible, visit:

https://support.zoom.us/hc/en-us/articles/201362023-System-requirements-for-Windows-macOS-and-Linux.

If you need a reasonable accommodation to participate, please Erica Rodriguez by e-mail at Erica.Rodriguez@energy.ca.gov or (916) 764-5705 at least five days in advance.

Questions

During the solicitation process, for questions only related to submission of application in the new ECAMS system, please contact . Through that email address applicants will be able to access a team of technical assistants who can answer questions about application submission. Please also see Section III.B for additional information about the ECAMS system.

For all other questions, including all technical and administrative questions that are not related to submission of applications in the ECAMS system, please contact the Commission Agreement Officer listed below:

Crystal Willis, Commission Agreement Officer

California Energy Commission

715 P, MS-18

Sacramento, California, 95814

Telephone: (916) -529-1108

E-mail:crystal.willis@energy.ca.gov

Applicants may ask questions at the Pre-Application Workshop, and may submit written questions via email. 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 CEC's discretion. Non-technical questions (e.g., administrative questions concerning application format requirements or attachment instructions) may be submitted to the CAO at any time prior to 5:00 p.m. of the application deadline date. Similarly, questions related to submission of applications in the ECAMS system may be submitted to ECAMS.SalesforceSupport@energy.ca.gov at any time prior to 5:00 p.m. of the application deadline date.

The questions and answers will also be posted on the CEC's website at: https://www.energy.ca.gov/funding-opportunities/solicitations

If an applicant discovers a conflict, discrepancy, omission, or other error in the solicitation at any time prior to 5:00 p.m. of the application deadline date, the applicant may notify the CAO in writing and request modification or clarification of the solicitation. The CEC, at its discretion will provide modifications or clarifications by either an addendum to the solicitation or by written notice to all entities that requested the solicitation. At its discretion, the CEC may, in addition to any other actions it may choose, re-open the question/answer period to provide all applicants the opportunity to seek any further clarification required.

Any verbal communication with a CEC employee or anyone else 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.

Applicants' Admonishment

This solicitation contains application requirements and instructions. Applicants are responsible for carefully reading the entire 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 and Scoring Criteria and Grounds to Reject an Application or Cancel an Award in Part IV, and the relevant CRISP Grant terms and conditions located at: https://www.energy.ca.gov/funding-opportunities/funding-resources.

Applicants are solely responsible for the cost of developing applications. This cost cannot be charged to the State. All submitted documents will become publicly available records and property of the State after the CEC posts the Notice of Proposed Award or the solicitation is cancelled. Only submit information you want made public. Applicants shall not submit any confidential information as part of their applications. No portion of your application will be considered confidential.

Additional Requirements regarding environmental review

Time is of the essence. CEC funds available under this solicitation have encumbrance deadlines as early as June 30, 2027. This means that the CEC must approve proposed awards at a business meeting (usually held monthly) prior to June 30, 2027, to avoid expiration of the funds. While this may seem like ample time, any delays in environmental review following a proposed award could jeopardize the project's ability to meet the deadline, potentially resulting in the cancellation of the proposed award.

Environmental Review. Prior to approval and encumbrance, the CEC must comply with the CEQA and other requirements. To comply with CEQA, the CEC 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 CEC 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 applications in a manner that minimizes the time required for the CEC to comply with CEQA and provide all CEQA-related information to the CEC in a timely manner such that the CEC is able to complete its review in time for it to meet its encumbrance deadline.

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 CEC 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 CEC's ability to meet its encumbrance deadline may thereby be jeopardized, the CEC 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 CEC's review may be delayed while waiting for a determination from the lead agency.

Example 2: If the proposed work is part of a larger project for which a detailed environmental analysis has been or will be prepared by another state agency or local jurisdiction, the CEC'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 CEC's review, or the lead agency's review, may take longer than the time available to encumber the funds. If an Initial Study, Negative Declaration, Mitigated Negative Declaration, Environmental Impact Report, or similar document 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 completed its environmental review and adopted CEQA findings 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 CEC may or may not be able to comply with CEQA within the encumbrance deadline and are only provided as further clarification for potential applicants. Applicants are encouraged to contact potential lead and responsible agencies under CEQA as early as possible. Please plan applications accordingly.

Background

Carbon Removal Innovation Program, also known as the Carbon Removal Innovation Support Program (CRISP)

In 2022, the California Climate Crisis Act was adopted to lower anthropogenic GHG emissions by 85% below 1990 levels and attain carbon neutrality by 2045. To support this legislation, the California Air Resources Board (CARB) prepared its 2022 Scoping Plan, outlining the importance of implementing new strategies, such as CDR, to address residual carbon emissions to achieve carbon neutrality. The Scoping Plan concluded that mechanical CDR will be needed to achieve carbon neutrality. Tackling this significant challenge will require applied research, development, and pre-commercial demonstration efforts to identify and advance economically viable and scalable CDR solutions.

In alignment with the effort to attain carbon neutrality, Assembly Bill (AB) 2093 created the Carbon Removal Innovation Program, referred to as the Carbon Removal Innovation Support Program (CRISP), administered by the CEC. CRISP supports initiatives focused on DAC, which removes carbon dioxide directly from the atmosphere using physical or chemical processes. DAC is an engineered carbon removal approach that can extract carbon dioxide (CO2) directly from the atmosphere from any location. By encouraging the development and deployment of DAC technology, the program aims to reduce GHG emissions and help achieve the state's carbon neutrality goals by 2045. Despite the growing anticipation of DAC as a key CDR strategy, the technology is nascent and limited by high costs and energy consumption.

CRISP is part of California Climate Investments, which uses billions of Cap-and-Invest dollars to fund projects that reduce harmful emissions, protect public health, strengthen local economies, and support natural environments. With a strong focus on communities most impacted by pollution and limited access to resources, California Climate Investments help build a more equitable and sustainable future.

Applicable Laws, Policies, and Background Documents

This program and solicitation are governed by the following laws, policies, and background documents.

Laws/Regulations

AB 1279 - The California Climate Crisis Act

AB 1279 mandates the reduction of anthropogenic GHG emissions by 85 percent below 1990 levels and the attainment of carbon neutrality by 2045. This legislation aims to mitigate the impacts of climate change by setting ambitious targets for emissions reductions and transitioning towards a low-carbon economy. The Act requires stringent monitoring, reporting, and enforcement measures to ensure compliance with the emission reduction goals outlined, to protect the environment and public health for current and future generations.

Additional Information:

AB 209 - Energy and Climate Change Act (2021-2022)

AB 209 required the CEC to establish and administer the Carbon Removal Innovation Program to provide financial incentives to eligible projects that advance technologies for direct air capture of atmospheric carbon. Eligible projects shall not include a project to benefit a petroleum or gas production, processing, or refining facility, through enhanced oil and gas recovery.

Additional Information:

AB 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 (now called cap-and-invest) program. AB 32 also designates CARB as the state agency charged with monitoring and regulating sources of GHG emissions and requires CARB to develop a Scoping Plan that describes the approach California will take to reduce GHGs. CARB must update the plan at least once every five years.

Additional information: https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=200520060AB32http://www.leginfo.ca.gov/pub/15-16/bill/sen/sb_0001-0050/sb_32_bill_20160908_chaptered.htm ;

https://ww2.arb.ca.gov/our-work/programs/ab-32-climate-change-scoping-plan

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

Senate Bill (SB) 905- Carbon Sequestration: Carbon Capture, Removal, Utilization, and Storage Program (2021-2022)

SB 905 establishes a framework for using carbon capture, removal, utilization and storage technologies to reduce greenhouse gas emissions and combat climate change. The program outlined in the bill focuses on promoting the development and deployment of these technologies, as well as establishing goals and benchmarks for carbon sequestration in the state.

SB 905 also addresses the importance of supporting and incentivizing research and development in the field of carbon sequestration, as well as incorporating environmental justice considerations into the program's implementation.

Additional information:

SB 1314-Oil and gas: Class II injection wells: enhanced oil recovery (2021-2022)

SB 1314 prevents an operator from injecting a concentrated carbon dioxide fluid from a CO2 capture process into a Class II injection well to enhance oil recovery, including facilitating in the recovery of oil from another well.

Additional information:

SB 32 - California Global Warming Solutions Act of 2006: emissions limit

SB 32 expands on AB 32 by requiring that CARB ensure statewide GHG emissions are reduced to 40 percent below the 1990 level by no later than December 31, 2030. SB 32 further requires that these emission reductions are achieved in a manner that benefits the state's most disadvantaged communities and are transparent and accountable to the public and the Legislature.

Additional information:

Applicable Law: California Health and Safety Code 38566.

SB 100 - The 100 Percent Clean Energy Act of 2018

SB 100 requires that 100 percent of retail sales of electricity to California end-use customers and 100 percent of electricity procured to serve all state agencies come from eligible renewable energy resources and zero-carbon resources by December 31, 2045. The bill requires the CPUC and the CEC, in consultation with CARB, to ensure that California's transition to a zero-carbon electric system does not cause or contribute to GHG emissions increases elsewhere in the western grid.

Additional information:

Policies/Plans

CARB Scoping Plan (2022)

The CARB Scoping Plan for 2022 outlines California's comprehensive strategy for reducing greenhouse gas emissions to meet state targets. The plan emphasizes the importance of carbon removal methods, such as reforestation, soil carbon sequestration, and DAC, in mitigating climate change and achieving carbon neutrality by 2045. It includes specific actions and initiatives to promote these practices, such as investing in research and development, implementing incentives for carbon removal projects, and collaborating with interested parties to address potential challenges. Additionally, the plan highlights the need for continued monitoring and evaluation to ensure the effectiveness of these carbon removal efforts and track progress toward reaching emission reduction goals. By prioritizing carbon removal methods, the CARB Scoping Plan for 2022 demonstrates California's commitment to driving meaningful action on climate change and building a more sustainable future for generations to come.

Additional information: https://ww2.arb.ca.gov/our-work/programs/ab-32-climate-change-scoping-plan/2022-scoping-plan-documents

Integrated Energy Policy Report (Biennial)

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

Additional information:

Applicable Law: California Public Resources Code 25300 et seq.

Match Funding

"Match funds" includes cash or in-kind (non-cash) contributions provided by the applicant, subrecipients, or other parties including pilot testing, demonstration, and/or deployment sites (e.g., test site staff services) that will be used in performance of the proposed project.

"Match funds" do not include: CEC 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 (e.g., photovoltaic systems).

Definitions of "match funding" categories are listed below:

"Cash" match means funds that are in the grant recipient's possession or proposed by a match partner and clearly identified in a support letter, 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 match can 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 match will be considered more favorably than in-kind contributions during the scoring phase.

"In-Kind" match can be in the form of goods or services that are not reimbursed with CEC funds such as labor (if reasonable and justified), donated space, existing equipment, existing supplies, services provided by a third-party or subrecipient, and other expendable property in support of the project. The value of in-kind match is based on the fair market value of the goods and services provided at the time it is claimed as match. The value of existing equipment must be prorated for its use in the project, and depreciated or amortized over the term of the project using generally accepted accounting principles (GAAP). Labor rates for hours donated by non-employees who are not paid for their time must be consistent with those paid for similar work. Cost allocations must be reasonable and allocable to the proposed project. In-kind match share must be included in the agreement budget.

The grant recipient is expected to maintain appropriate documentation to support the fair market value of all in-kind match including match donated by third parties or major subrecipients.

Match funds must be spent only during the agreement term, either before or concurrently with CEC funds or in accordance with an approved Match Fund Spending Plan. Match funds also must be reported in invoices submitted to the CEC.

All applications that include match funds must submit commitment letters, including applicant, subrecipients, sub-subrecipients, and vendors 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 Commitment and Support Letters Form Attachment. Commitment and support letters must be submitted with the application to be considered.

Any match pledged in an application must be consistent. For example, in the ECAMS system and in the Budget Attachment applicants will be asked to enter the project's total match funding. The amounts listed in those places should 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, the match amounts entered in the ECAMS system and in the Budget must match this amount). If the amounts listed in an application are inconsistent, the total amount pledged in the commitment letter(s) will be considered for match funding points.

Examples of preferred match share:

"Travel" refers to all travel required to complete the tasks identified in the Scope of Work. Travel includes in-state and out-of-state, and travel to conferences. Use of match funds for out-of-state travel is encouraged, as the CEC discourages and may not approve the use of its funds for such travel. If an applicant plans to travel to conferences, including registration fees, they must use match funds.

"Equipment" is 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 as there are no disposition requirements at the end of the agreement for such equipment. Typically, grant recipients may continue to use equipment purchased with CEC funds if the use is consistent with the intent of the original agreement.

"Materials" under Materials and Miscellaneous are items under the agreement that do not meet the definition of Equipment (unit cost of at least $5,000 and a useful life of at least one year). Using match funds for purchasing items such as laptops, notebooks and/or personal tablets is encouraged, as Energy CEC funds for these purchases is not allowed.

Funds Spent in California

Only CEC funds may count towards funds spent in California total.

"Spent in California" means that:

(1) Funds in the "Direct Labor category and all categories calculated based on direct labor (e.g., fringe benefits, indirect costs and profit) are paid to individuals that pay California state income taxes on wages received for work performed under the agreement. Payments made to out-of-state workers do not count as "funds spent in California." However, funds spent by out-of-state workers in California (e.g., hotel and food) can count as "funds spent in California."; AND

(2) Business transactions (e.g., material and equipment purchases, leases, and rentals) are entered into with a business located in California.

(3) Total should include any applicable, subrecipients, sub-subrecipients, and vendors.

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. lodging) and airline travel originating and ending in California are considered funds "spent in California." A business located in California means: 1) businesses registered with Secretary of State AND 2) transaction is with a location in California that is directly related to the grant project (e.g., direct purchase of material and equipment to be used in the grant) and results in the support of California business and jobs.

Example 1: CEC funds will be spent on temperature sensors. The temperature sensors are manufactured in Washington. The grant recipient orders the temperature sensors directly from a CA based supply house. The invoice shows that the transaction occurred with the CA based supply house. This transaction is eligible and can be counted as funds spent in CA.

Example 2: CEC funds will be spent on temperature sensors. The temperature sensors are manufactured in Washington. The grant recipient orders the temperature sensors directly from Washington. The manufacturer has training centers in CA that instructs purchasers on how to use the sensors. The invoice shows that the transaction occurred in Washington. This transaction is not eligible and cannot be counted as funds spent in CA.

CEC's Rights and Remedies

Any process explained in this solicitation is in addition to, and does not restrict, any other rights and remedies available to the CEC.

II. Eligibility Requirements

Applicant Requirements

Eligibility

This solicitation is open to all public and private entities.

Terms and Conditions

Each grant agreement resulting from this solicitation will include terms and conditions that set forth the grant recipient's rights and responsibilities. By submitting an application in the ECAMS system, each applicant agrees to enter into an agreement with the CEC to conduct the proposed project according to the terms and conditions that correspond to its organization, without negotiation: (1) University of California and California State University terms and conditions; (2) U.S. Department of Energy terms and conditions; (3) Special Terms and Conditions for California Native American tribes and tribal with Sovereign Immunity in addition to the standard terms and conditions; or (4) standard terms and conditions. All terms and conditions are located at https://www.energy.ca.gov/funding-opportunities/funding-resources. Please refer to the applicable CRISP Grant terms and conditions. Failure to agree to the terms and conditions by taking actions such as failing to provide the required authorizations and certifications or indicating that acceptance is based on modification of the terms may result in rejection of the application. Applicants must read the terms and conditions carefully. The CEC reserves the right to modify the terms and conditions prior to executing grant agreements.

If a California Native American tribe (tribe) or California tribal organization with sovereign immunity is listed as a proposed awardee in the Notice of Proposed Award, CEC staff must receive the following before bringing the proposed award to a CEC Business Meeting:

1. A resolution or other authorizing document by the governing body of the tribe or California tribal organization authorizing the tribe or California tribal organization to enter into the proposed agreement, including accepting the Special Terms and Conditions for California Native American tribes and tribal organizations with Sovereign Immunity.

2. A limited waiver of sovereign immunity in the form and manner required by tribal law; and

3. A resolution or other authorizing document delegating authority to execute the agreement to an appropriate individual.

The above requirements may be provided in one or more documents. The document(s) will be included as an exhibit to the resulting grant agreement.

Delay in award. Any delay in the tribe or tribal organization's ability to provide such documentation may result in delayed award of the grant agreement.

Reservation of right to cancel proposed award. Funds available under this solicitation have encumbrance deadlines that the CEC must meet to avoid expiration of the funds. In addition to any other rights reserved to it under this solicitation or that it otherwise has, the CEC reserves the right to cancel a proposed award if it determines, in its sole and absolute discretion, that the documentation described above would likely not be provided prior to an encumbrance deadline, and that the CEC's ability to meet its encumbrance deadline may thereby be jeopardized. In this instance, the CEC may cancel the proposed award and award funds to the next highest scoring applicant.

California Secretary of State Registration

All corporations, limited liability companies (LLCs), limited partnerships (LPs) and limited liability partnerships (LLPs) that conduct intrastate business in California are required to be registered and in good standing with the California Secretary of State prior to its project being recommended for approval at an CEC Business Meeting. If not currently registered with the California Secretary of State, applicants and project team members (e.g. subrecipients and even match fund partners) 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 proposed for funding). Applicants should provide the exact legal names of entities included in their applications, along with any fictitious business names. Fictitious business names must be currently valid, i.e., not expired with the Secretary of State. As part of the CEC's due diligence, particularly during the agreement development phase, CEC staff may request the supporting documentation regarding the above registration requirements.

For more information, contact the Secretary of State's Office via its website at www.sos.ca.gov. Sole proprietors do not have to be registered with the California Secretary of State. However, the local government may require a business license and if using a fictitious business name, registration of the name may be required. Sole proprietors must be able to provide evidence of required licenses and/or registration with the appropriate local government, or evidence that such licenses and/or registration is not required, to the CEC prior to the project being recommended for approval at a CEC Business Meeting.

Russia Sanctions

The budget must NOT identify that CEC 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. Recent legal restrictions may include Russian Sanctions as described below:

On March 4, 2022, Governor Gavin Newsom issued Executive Order N-6-22 (the EO) regarding Economic Sanctions against Russia and Russian entities and individuals. "Economic Sanctions" refers to sanctions imposed by the U.S. government in response to Russia's actions in Ukraine, as well as any sanctions imposed under state law. The EO directs state agencies to terminate contracts with, and to refrain from entering any new contracts with, individuals or entities that are determined to be a target of Economic Sanctions.

Accordingly, should the State determine Recipient is a target of Economic Sanctions or is conducting prohibited transactions with sanctioned individuals or entities, that shall be grounds for termination of this agreement. The State shall provide Recipient advance written notice of such termination, allowing Recipient at least 30 calendar days to provide a written response. Termination shall be at the sole discretion of the State.

Project Requirements

Projects must fall within the pre-commercial pilot and demonstration stage and focus on advancing DAC technologies toward operational readiness. Eligible activities may include pilot-scale testing, integrated system validation, and field-ready demonstrations conducted under conditions representative of anticipated operating environments. Projects may range from advanced pilot systems to early demonstration-scale installations, provided they generate meaningful data on technical performance, scalability, operational reliability, and cost. The intent of this solicitation is to support projects that advance pre-commercial DAC technologies toward commercial viability while reducing technical and financial risk.

Applications involving the installation and operation of pre-commercial DAC technologies or strategies at a representative scale and under realistic operating conditions, sufficient to evaluate operational performance and financial risks, are strongly encouraged and will be favored during evaluation. Proposed projects must be located in California and must comply with all applicable permitting and environmental review requirements (including CEQA), California Climate Investments reporting requirements and non-confidential application submission requirements. Applications must clearly distinguish the proposed scope of work from any prior CEC-funded efforts and describe how the proposed project builds upon, extends, or is otherwise distinct from previously CEC-funded work. Projects must also include a plan for third-party, independent MRV; evaluation of environmental and public health impacts and benefits; and sustained, meaningful community engagement maintained throughout the term of the agreement and beyond project completion, as appropriate to project scale and impacts.

Examples of eligible projects include, but are not limited to, projects that:

Power DAC systems with low-carbon and grid-flexible energy, using renewable electricity, waste heat, or zero-carbon fuels that can respond to grid conditions and support demand flexibility.

Integrate DAC with other carbon removal pathways, such as:

Ocean-based methods, including alkalinity enhancement,

Mineralization or geologic storage (only DAC system integration and CO2 delivery eligible; storage infrastructure and operations must be funded exclusively with non-CEC sources), and/or

Biomass- or algae-based CO2 pre-capture followed by DAC processes.

Deploy modular or mobile DAC units designed for remote or distributed deployment that:

Use non-potable water, wastewater, or net water-producing processes,

Employ low-carbon manufacturing methods for DAC materials and components,

Minimize maintenance, replacement, and infrastructure costs, and/or

Minimize the use of toxic solvents or sorbents, with strategies to reduce environmental and public health risks.

Co-locate DAC systems within California hubs, industrial facilities, or waste-handling sites that:

Use industrial byproducts or waste heat as inputs, r

Incorporate novel solvents, sorbents, or electrochemical capture methods,

Establish partnerships for durable CO2 storage or utilization,

Prioritize resource efficiency and low-emission operation throughout the system lifecycle, and/or

Enable CO2 utilization or connection with permanent storage partners or infrastructure, consistent with funding eligibility constraints

Ineligible Projects, Activities, Partnerships, and Uses of CEC Funds

Ineligible Uses of CEC Funds. CEC funds cannot be used for:

Renewable energy generation (including capital, equipment, or installation costs). Renewable energy generation costs may be included only as eligible matching funds and must be funded exclusively with non-CEC sources.

Mineralization or geologic CO2 storage. Associated costs may be included only as eligible matching funds and must be supported exclusively with non-CEC funding.

CO2 storage or CO2 utilization infrastructure or operations. Such costs may be included only as eligible matching funds and must be supported exclusively with non-CEC funding.

Any activities associated with enhanced oil or gas recovery. These activities cannot be part of any CRISP project using either CEC or match funding.

Ineligible Project Types: Projects are not eligible under this solicitation if they:

Focus primarily on point-source carbon capture rather than DAC.

Focus primarily on non-DAC CDR pathways without integration of a DAC mechanism.

Involve or provide direct or indirect benefit to enhanced oil or gas recovery.

Primarily rely on terrestrial sequestration without integration of DAC technology.

Reporting Requirements for California Climate Investments:

All funded projects are required to report on project benefits for California Climate Investments using the latest version of the template supplied by CAM. In addition, LCA findings must be provided annually to comply with the California Climate Investments reporting requirements. Key reporting items include:

Emission reductions and other benefits of the project using the quantification and assessment methodology or guidance developed by CARB for California Climate Investments.

Benefit assessment of priority populations using the benefit assessment tool developed by CARB for California Climate Investments.

Jobs data submitted annually using the Excel reporting template developed by CARB for California Climate Investments.

Measurement Reporting and Verification Plan

As mentioned in Section I.C. Project Focus, the Project Narrative (Attachment 2) must include an MRV Plan that describes how the actual project benefits will be measured and quantified. For example, the plan must include the assessment of reduced carbon intensity in comparison to existing products and processes and improved energy efficiency (in terms of therms and kWh per kg of captured CO2) associated with the proposed DAC technology. The activities proposed in the MRV Plan must be included in the "Technical Tasks" section of the Scope of Work Template (Attachment 4), be aligned with the performance metrics Key Performance Metrics described in Section I.C. Project Focus, and include:

Monitoring: The MRV Plan must outline the monitoring methods and technologies to be used to track CO2 capture, transportation, and storage throughout the DAC process. This may include monitoring equipment, sensors, and data collection procedures to measure CO2 concentrations, flow rates, and other relevant parameters.

Reporting: The MRV Plan should specify the reporting requirements for documenting and reporting CO2 capture and storage data to regulatory authorities, the host community, and the public. This may include regular reporting intervals, data formats, and reporting protocols to ensure transparency and accountability.

Verification: The MRV Plan should describe the verification procedures and independent third-party audits that will be conducted to validate the accuracy and reliability of the CO2 capture and storage data. Verification processes help ensure the integrity of the project's CO2 and criteria pollutant emissions reductions and compliance with regulatory standards.

Data Management: The MRV Plan should describe the data management procedures for collecting, storing, and analyzing CO2 capture and storage data. This may include data quality control measures, data security protocols, and data sharing mechanisms to facilitate transparency and accountability.

Compliance Assurance: The MRV Plan should outline the procedures for ensuring compliance with regulatory requirements, including permit conditions, reporting deadlines, and emissions reduction targets. This may involve internal controls, documentation requirements, and compliance monitoring mechanisms to ensure ongoing adherence, identify and address potential non-compliance, and support timely corrective actions.

Community Engagement, Outreach, and Education Plan Requirements

As mentioned in Section I.C. Project Focus, the Project Narrative (Attachment 2), applicants must submit a Community Engagement, Outreach, and Education Plan commensurate with project scope and maturity. The plan must include, at a minimum:

Community Identification and Relationship

Identify and characterize the communities associated with the project, including the DAC demonstration site community, nearby populations, and other potentially impacted populations, by demographics, socioeconomic context, and existing environmental burdens using tools such as the California Climate Investments Priority Populations Map, with supplemental use of CalEnviroScreen 4.0 or similar resources where additional indicator-level detail is needed.

Demonstrate a direct relationship between the DAC site and the community or communities the project is intended to benefit. These benefits must be directed to the host community where the DAC site is located or its surrounding service area..

Demonstrate that community engagement is based on dialogue, responsiveness, and incorporation of community input, rather than assuming inherent benefits from DAC deployment.

Engagement Approach and Participation (including demonstration of prior engagement activities and plans for continued engagement throughout project implementation)

Describe how engagement will begin early in project planning and evolve throughout implementation in response to community feedback and changing project conditions.

Describe how engagement with local interested parties will be meaningful and transparent, including partnerships with community-based organizations, tribal governments, labor organizations, advocacy groups, and local agencies, as appropriate.

Describe how interested parties will be involved in project planning, design, deployment, and evaluation.

Provide documentation of existing or prior engagement activities, such as meeting summaries, memoranda of understanding, or partnership agreements, where available.

Describe how community-identified benefits will be developed based on community needs and priorities, rather than assuming predefined benefits such as job creation alone and as described below, subsequently translated into measurable outcomes for tracking and reporting purposes.

Describe plans for establishing and maintaining a community advisory board or similar oversight or advisory structure that includes community representatives and provides ongoing input throughout the project term; projects that demonstrate effective implementation of such a structure may be viewed more favorably.

Outreach, Education, and Public Communication

Implement public engagement, education, and workforce outreach using accessible and multilingual materials, as appropriate. Examples include workshops, open houses, community meetings, or collaboration with local workforce and education programs.

Community Benefits and Accountability

Identify measurable community benefits informed by community input and explain how progress will be tracked, reported, and used to address community concerns over time, including practices that support overburdened or underserved communities.

Provide a clear strategy describing community-identified benefits (as developed through engagement with community input), workforce development opportunities, and long-term impact measures, including how accountability will be maintained throughout the project term.

Describe a plan for regular reporting of outreach activities and community feedback, including initiation, periodic updates during project implementation, and reporting at project completion, using accessible methods; optional public dashboards are encouraged.

CEQA Compliance and Permitting Plan

As described in Section I.C. Project Focus, the Technical Approach of the Project Narrative (Attachment 2) must include a CEQA Pathway Plan appropriate to the project's scope and permitting status. The CEQA Pathway Plan must include, at a minimum:

CEQA Status and Lead Agency: Identify the CEQA Lead Agency (if applicable) and describe the project's current CEQA status. If the project appears to qualify for a statutory or categorical exemption, or if CEQA has been completed through an existing industrial facility or prior approval, provide documentation and justification.

Review Pathway and Schedule: Describe the anticipated CEQA pathway (e.g., exemption, Negative Declaration, Mitigated Negative Declaration, or Environmental Impact Report), or confirm completed review. Applicants are required to provide a schedule of remaining environmental review and permitting milestones, if applicable.

Permits and Agency Coordination: Identify major required permits and approvals and describe coordination with relevant agencies, tribal governments (if applicable), and local jurisdictions.

Environmental Impact Management: Summarize key environmental issue areas and describe how avoidance, minimization, and mitigation measures will be incorporated into project design and implementation.

Clean Energy Procurement Plan (Optional)

As mentioned in Section I.C. Project Focus, the Project Narrative (Attachment 2), applications that include a clean energy procurement plan will receive preference points. The plan must clearly define how clean energy is measured and verified in the proposed DAC operations. It must also specify the total electric demand, preferred procurement method (i.e., volumetric, emission, or temporal matching), source (e.g., power purchase agreement, virtual power plant, on-site solar), and data collection and reporting method (hourly, if possible). In addition, the plan should:

Describe the approach that will be used to track clean energy use, including how renewable energy certificates or similar instruments will be applied, if used.

Identify the clean energy resources to be used and indicate whether they are new or existing sources, to the extent known.

Describe, at a high level, how energy procurement aligns with DAC operations in time and location, where feasible.

Provide a brief description of the procurement structure (e.g., power purchase agreement, on-site generation) and expected duration, if available.

Outline the approach for basic monitoring and reporting of energy use and associated emissions.

Describe, if applicable, whether DAC operations can be adjusted to better align with clean energy availability.

Indicate whether the plan is intended to cover all or a portion of the project's electricity use.

III. Application Submission Instructions

Application Format, Page Limits

All items listed below are required as part of the application package. Failure to provide any items may result in disqualification of the application. Attachment requirements are expanded and explained below in this section and in the attachments themselves.

Method For Delivery

The only method of submitting applications to this solicitation is Energy Commission Agreement Management System (ECAMS), available at: https://ecams.energy.ca.gov.

The CEC is providing a team of technical assistants to support applicants with this new process. Please email ECAMS.SalesforceSupport@energy.ca.gov for support.

ECAMS allows applicants to complete and submit their application to the CEC prior to the date and time specified in this solicitation. Files uploaded to the system must be in Microsoft Word XP (.doc format) or newer and Excel Office Suite formats unless originally provided in the solicitation in another format. Attachments requiring signatures, such as match funding commitment letters, may be scanned and submitted in PDF format. Completed Budget Forms, Attachment, must be in Excel format.

The deadline to submit applications through ECAMS system is 11:59 p.m. on the Deadline to Submit Applications date shown in the Key Activities Schedule. ECAMS automatically closes at 11:59 pm. If the full submittal process has not been completed before 11:59 p.m., your application will not be considered.

The CEC strongly encourages Applicants to upload and submit all applications by 5:00 p.m. because CEC staff will not be available after 5:00 p.m. or on weekends to assist with the upload process. And please note that while we endeavor to assist all would-be applicants, we can't guarantee staff will be available for in-person consultation on the due date, so please plan accordingly.

Please give yourself ample time to complete all steps of the submission process: do not wait until right before the deadline to begin the process. Due to factors outside the CEC's control and unrelated to ECAMS, upload times may be much longer than expected. For example, unexpected issues could occur, causing long delays that prevent timely submission. Please plan accordingly. For instructions on how to apply using the ECAMS system, please see the How to Apply document available on the CEC website at: https://www.energy.ca.gov/funding-opportunities/funding-resources, under General Funding Information, Energy Commission Agreement Management System (ECAMS).

First time users must register as a new user to access the system. There will be two types of user accounts to establish: 1) An organizational account, for the entity applying to the solicitation; and 2) user accounts for individuals who will be submitting the application on behalf of the organization.

Applicants will be required to upload all attachments marked "required" in the system in order for the application to be submitted.

Application Content

Below is a general description of each required section of the application. Please reference each individual attachment for a detailed description of the information requested by that attachment. Completeness in submitting all the information requested in each attachment will be factored into application scoring.

Executive Summary Form (Attachment 1)

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

Project Narrative Form (Attachment 2)

This form includes the majority of the applicant's responses to the Scoring Criteria in Section IV. The following must also be addressed for both Applied Research & Technology Demonstration projects:

Include required specific information (see Section I.C) in the specified sections.

Project Team Form (Attachment 3)

Identify by name all key personnel assigned to the project, including the project manager and principal investigator (if applicable), and individuals employed by any major subrecipient (a major subrecipient is a subrecipient receiving $100,000 or more of Commission funds). Clearly describe their individual areas of responsibility. Include the information required for each individual, including a resume (maximum two pages).

Scope of Work Template (Attachments 4)

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.

Electronic files for the Scope of Work must be in MS Word file format.

Project Schedule (Attachment 5)

The Project Schedule includes a list of all product, meetings, and due dates. All work must be scheduled for completion by the "Key Dates" section of this solicitation manual.

Electronic files for the Project schedule must be in MS Excel file format.

Budget Forms (Attachment 6)

Because this solicitation is utilizing the new ECAMS system for submitting applications, applicants have two options for uploading a budget:

Option 1: Prime Applicant's budget is both keyed directly into ECAMS and uploaded as an MS Excel attachment; the Prime's Major Subrecipient(s) budgets are uploaded as MS Excel attachments. The new ECAMS system allows applicants to build the prime applicant's budget directly into the system. At this time, there is no way to input major subrecipient budgets directly into the system. Instructions for inputting budget items into the ECAMS system are included at: https://www.energy.ca.gov/funding-opportunities/funding-resources.

Option 2: Upload all budgets (Prime and Major Subrecipients) as MS Excel attachments and leave the ECAMS budget sections blank.

Instructions for completing the budgets can be found in Budget Category Guidance at the ECAMS Resources page. Read the instructions tab on the MS Excel attachments Attachment 6 before completing the worksheets. Complete and submit information on all budget worksheets. The salaries, rates, and other costs entered on the worksheets will become a part of the final agreement.

All project expenditures (match share and reimbursable) must be made within the Anticipated Agreement Start and End dates listed in the "Key Activities Schedule" of this solicitation manual. Match share requirements are discussed in Part I.D and I.K of this solicitation. The entire term of the agreement and projected rate increases must be considered when preparing the budget.

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

The rates proposed, except for Direct Labor and Fringe Benefits, are considered capped and may not change during the agreement term. Except for Direct Labor and Fringe Benefits, the grant recipient will only be reimbursed for actual rates and not to exceed the capped rates. The rates proposed for Direct Labor and Fringe Benefits are treated as estimates; a grant recipient can invoice at higher rates as long as it is only invoicing for actual expenditures it has made. If an applicant, by law, cannot agree to Direct Labor and Fringe Benefits rates being treated as estimates, the applicant can request to modify this term. This modification may be negotiated if the applicant is proposed for award. The CEC retains the sole right to refuse to agree to any requested modifications. The budget must NOT include any grant recipient profit from the proposed project, either as a reimbursed item, match share, or as part of overhead or general and administrative expenses (subrecipient profit is allowable, though the maximum percentage allowed is 10% of the total subrecipient rates for labor, and other direct and indirect costs as indicated in the Category Budget tab). Please review the terms and conditions and budget forms for additional restrictions and requirements.

The budget must allow for the expenses of all meetings and products described in the Scope of Work. Meetings may be conducted at the CEC or by conference call, as determined by the CAM.

Applicants must budget for permits and insurance. Permitting costs may be accounted for in match share. Permit costs and the expenses associated with obtaining permits are not reimbursable with CEC funds, with the exception of costs incurred by University of California grant recipients.

The budget must NOT identify that CEC 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.

Prevailing wage requirement: Projects that receive an award of public funds from the CEC 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 CEC 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, the 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, the grant recipient must either:

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

prevailing wages are paid; and

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

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.

California Environmental Quality Act (CEQA) Compliance Form (Attachment 7)

The CEC 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 CEC's Notice of Proposed Award may, in the CEC's sole discretion and without limiting any of the CEC's other rights and remedies, result in the cancellation of a proposed award and allocation of funding elsewhere, such as to the next highest-scoring project.

Past Projects Information (Attachment 8)

The Past Projects Information Form asks for information about the Applicant and its major subrecipients' past agreements with the CEC and other entities.

Commitment and Support Letter Form (Attachment 9)

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.

Commitment Letters

Applicants must submit a match funding commitment letter from each entity that is committing to providing match funding. Each commitment letter must be signed by an authorized representative of the entity or by the individual that is making the commitment. A commitment letter must include all of the following: (1) identification of the source(s) of the funds; (2) a justification of the dollar value claimed; (3) an unqualified (i.e. without reservation or limitation) commitment that guarantees the availability of the funds for the project; and (4) a strategy for replacing the funds if they are significantly reduced or lost.

If the project involves demonstration activities, the applicant must include a site commitment letter signed by an authorized representative of the proposed demonstration site. The letter must: (1) identify the location of the site (street address, parcel number, tract map, plot map, etc.) consistent with ECAMS and the CEQA Compliance Form (Attachment) or provide justification if the exact site location is presently undetermined; and (2) unconditionally commit to providing the site for the proposed activities if recipient is awarded a CEC grant.

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

Support Letters

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

Project Performance Metrics (Attachment 10)

The purpose of this questionnaire is to identify and document performance targets for the project. The performance targets should be a combination of scientific, engineering and techno-economic metrics that provide the most significant indicator of the research or technology's potential success. The metrics should provide constructive targets for the performance of the technology or project and how the metric will be measured and evaluated, during the project and after the project is complete.

Applicant Declaration (Attachment 11)

This form requests the applicant make certain declarations under penalty of perjury. This form must be signed by an authorized representative of the applicant's organization

IV. Evaluation and Award Process

Application Evaluation

Applications will be evaluated and scored based on responses to the information requested in this solicitation and on any other information available, such as past performance of CEC agreements. To evaluate applications, the CEC will organize an Evaluation Committee that consists of primarily, or all CEC staff. The Evaluation Committee may use additional technical expert reviewers to provide an analysis of applications.

Stage One: Application Screening

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.

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 Evaluation Committee may consist of CEC staff or staff of other California state entities. The Evaluation Committee may use additional technical expert reviewers to provide an analysis of applications.

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

A minimum score of 80.50 points is required for criteria 1-7 to be eligible for funding. In addition, the application must receive a minimum score of 52.50 points for criteria 1-4, to be eligible for funding.

Ranking, Notice of Proposed Award, and Agreement Development

Ranking and Notice of Proposed Award

Applications that receive at least the minimum required score for all criteria will be ranked according to their score by group.

CEC staff 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 CEC will post the NOPA on its website, and will e-mail it to all entities that submitted an application. Proposed awards must be approved by the CEC at a business meeting.

Debriefings: Applicants may request a debriefing after the release of the NOPA by e-mailing the CAO listed in Part I. A request for debriefing must be received no later than 30 calendar days after the NOPA is released. The purpose of the debriefing is to provide the applicant feedback on contributing factors to their score and opportunities for improvement on future applications. Debriefings are not intended to be a comprehensive examination of all deficiencies within an application.

In addition to any of its other rights, the CEC reserves the right to:

Allocate any additional funds to passing applications, in rank order;

Aggregate funds from multiple groups to fully fund the highest ranked passing application(s), regardless of group. (if applicable); and

Negotiate with successful applicants to modify the project scope, schedule, project team entity that will receive the award, project location and/or level of funding.

Agreements

Applications recommended for funding in a NOPA will be developed into a proposed grant agreement to be considered at a CEC Business Meeting. Grant recipients may begin the project only after full execution of the grant agreement (i.e., approval at a CEC business meeting and signature by the grant recipient and the CEC).

Agreement Development: The Contracts, Grants, and Loans Office will send the grant recipient a grant agreement for approval and signature. The agreement will include the applicable terms and conditions and will incorporate this solicitation and the application by reference. The CEC reserves the right to modify the award documents (including the project scope, level of funding and terms and conditions) prior to executing any agreement.

If proposed for an award, the CEC reserves the right to request information it deems appropriate to evaluate the financial condition of the proposed awardee, subrecipients, and vendors prior to approval of a grant award. If CEC, in its sole discretion, determines that the proposed awardee's, a subrecipient's, or a vendor's financial condition may materially impact its ability to complete the proposed project, CEC reserves the right to cancel the proposed award.

Performance Evaluation: An applicant receiving an award under this solicitation is subject to evaluation of performance under the resulting agreement. The CEC reserves the right to utilize the performance evaluation to screen and score future funding applications.

Failure to Execute an Agreement: If the CEC is unable to successfully execute an agreement with an applicant in a timely manner, it reserves the right to cancel the pending award and use the funds elsewhere, such as to fund the next highest-ranked, eligible application.

Grounds to Reject an Application or Cancel an Award

Applications that do not pass the screening stage will be rejected. In addition, the CEC reserves the right to reject an application and/or to cancel an award for any reason, including any of the following:

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 any way.

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 an EPIC or Public Interest Energy Research (PIER) agreement, has received the royalty review letter (which the CEC annually sends out to remind past award 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 performance evaluations from the CEC or another California state agency.

The applicant is a business entity required to be registered with the California Secretary of State and is not in good standing.

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

The applicant fails to meet CEQA compliance within sufficient time for the CEC to meet its encumbrance deadline or any other deadlines, as the CEC in its sole and absolute discretion may determine.

The applicant has included a statement or otherwise indicated that it will not accept the terms and conditions, or that acceptance is based on modifications to the terms and conditions. If an applicant, by law, cannot agree to certain terms and conditions, the applicant can request a modification. This modification may be negotiated if the applicant is proposed for award. The CEC retains the sole right to refuse to agree to any requested modifications.

The CEC, in its sole discretion, determines the Applicant's financial condition may materially impact its ability to complete the proposed project.

Miscellaneous

Solicitation Cancellation and Amendment

It is the policy of the CEC 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 CEC 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 CEC will post an addendum on CEC's website at: https://www.energy.ca.gov/funding-opportunities/solicitations. The CEC will not reimburse applicants for application development expenses under any circumstances, including cancellation of the solicitation.

Modification or Withdrawal of Application

Applicants may recall or modify a submitted application within ECAMS before the deadline to submit applications. 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."

Confidentiality

Though 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 and property of the State after the CEC posts the NOPA or the solicitation is cancelled. The CEC will not accept or retain applications that identify any portion as confidential unless the applicant clarifies in writing that marking the material as confidential was a mistake and the material can be made public.

Solicitation Errors

If an Applicant discovers any ambiguity, conflict, discrepancy, omission, or other error in the solicitation at any time prior to 5:00 p.m. of the application deadline date, the Applicant should immediately notify the CEC of the error in writing and request modification or clarification of the solicitation. The CEC will provide modifications or clarifications by written notice to all entities that requested the solicitation. The CEC will not be responsible for failure to correct errors.

Immaterial Defect

The CEC may waive any immaterial defect or deviation contained in an application. The CEC's waiver will not modify the application or excuse an applicant proposed for funding from full compliance with solicitation requirements.

Tiebreakers

If the score for two or more applications are tied, the application with a higher score in the 3 criterion will be ranked higher. If still tied, an objective tie-breaker (such as a random drawing) will be utilized.

Clarification Interviews

The Evaluation Committee may conduct optional Clarification Interviews with applicants 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.

Opportunity to Cure Administrative Errors

The CEC understands and appreciates the significant time and expense applicants spend preparing applications. An administrative error that prevents an applicant from submitting a complete application frustrates both the CEC and applicants. The purpose of this process is to reduce the number of applications screened out or receiving a significantly reduced score for administrative errors while maintaining a fair competition. This process also ensures better competition and thus better projects to benefit California.

After the application deadline, an applicant might identify, or the Evaluation Committee may find what reasonably appears to be, an administrative error. For purposes of this solicitation only, an administrative error is defined as an applicant's inadvertent mistake that prevents materials in existence as of the application deadline from appearing in its submitted application. Examples include, but are not limited to, accidentally:

Scanning and submitting every other page in a document instead of every page.

Submitting the wrong document.

Leaving out a document.

If the Evaluation Committee find what reasonably appears to be an administrative error, they can communicate with the applicant to confirm. If an applicant finds an administrative error in its application, it should immediately contact the Commission Agreement Officer listed in the "Contact Information/Questions" section of this solicitation.

If an administrative error has been identified and communicated to the Commission Agreement Officer, the CEC may, but is not required to, allow the applicant a period of time to provide the missing materials. Reasons why the CEC might NOT allow an applicant to fix an administrative error include, but are not limited to:

The funds have a deadline that does not allow time to fix the error.

The application has been screened out or does not receive a passing score for reasons unrelated to the administrative error, making irrelevant any efforts to fix the error.

The applicant brings the error to the CEC's attention too late in the solicitation process (e.g., after awards have been approved at a Business Meeting).

If the Evaluation Committee allows an applicant the opportunity to fix an administrative error, the Commission Agreement Officer will communicate in writing to the applicant's project manager listed the deadline by which the applicant must provide the missing materials. Reasonable efforts will be made to confirm receipt of the notice, but actual notice cannot be guaranteed and the obligation is on the applicant to ensure the proper contact(s) are listed and available to respond. The Evaluation Committee will not consider any materials submitted after the deadline.

This process only allows applicants to submit materials in existence as of the application deadline. This process does NOT allow applicants to submit material created or modified after the application deadline. The CEC has sole discretion to determine whether materials submitted are eligible for consideration by the Evaluation Committee under this opportunity to cure.

Applicants must include the following certification along with the materials it submits to fix an administrative error and must explain why the materials were not provided due to an inadvertent administrative error:

"I certify on behalf of the applicant that the materials provided herein existed at the time of the application deadline, have not been modified since, and were not originally provided due to an inadvertent administrative error as described herein."

The Evaluation Committee is not responsible for finding, or communicating with the applicant about, any errors in an application. Applicants remain solely responsible for submitting applications, including any material submitted to fix an administrative error, that meet all solicitation requirements.

Stage One: Application Screening

Screening Criteria for Past Performance

Stage Two: Application Scoring

Applications that pass ALL Stage One Screening Criteria and are not rejected as described in Section IV.C. will be evaluated based on the Scoring Criteria and the Scoring Scale below (with the exception of criteria 6-7, 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 must respond to each sub-criterion, unless otherwise indicated.

Scoring Scale

Scoring CRITERIA

The Project Narrative Attachment must respond to each criterion below. The responses must directly relate to the solicitation requirements and focus as stated in the solicitation. Any estimates of energy savings or GHG impacts should be calculated as specified in the References for Calculating Energy End-Use and GHG Emissions Attachment, to the extent that the references apply to the proposed project.