GFO-25-303 - Improving Net Load Forecasting Models by Integrating Data on Behind-the-Meter Resources

GRANT FUNDING OPPORTUNITY

Improving Net Load Forecasting Models by Integrating Data on Behind-the-Meter Resources

EPIC Program

GFO-25-303

Addendum #1

https://www.energy.ca.gov/funding-opportunities/solicitation

State of California

California Energy Commission

December [October] 2025

Table of Contents

I. Introduction 1

A. Purpose of Solicitation 1

B. Key Words/Terms 2

C. Project Focus 6

D. Funding 8

E. Key Activities Schedule 9

F. Notice of Pre-Application Workshop 10

G. Questions 10

H. Applicants’ Admonishment 11

I. Additional Requirements regarding environmental review 12

J. Background 13

K. Match Funding 17

L. Funds Spent in California 19

II. Eligibility Requirements 20

A. Applicant Requirements 20

B. Project Requirements 22

III. Application Submission Instructions 23

A. Application Format, Page Limits 23

B. Method For Delivery 23

C. Application Content 24

IV. Evaluation and Award Process 29

A. Application Evaluation 29

B. Ranking, Notice of Proposed Award, and Agreement Development 29

C. Grounds to Reject an Application or Cancel an Award 30

D. Miscellaneous 31

E. Stage One: Application Screening 34

F. Stage Two: Application Scoring 35

Attachments Attachment Number Title of Section 1 Executive Summary Form 2 Project Narrative Form 3 Project Team Form 4 Scope of Work Template 5 Project Schedule 6 Budget 7 CEQA Compliance Form 8 Past Projects Information Form 9 Commitment and Support Letters Form (requires signature) 10 Project Performance Metrics 11 Applicant Declarations (requires signature)

Disclaimer: Textual content in [strikethrough] and within square brackets is removed. New information appears in bold/underlined text.

I. Introduction

A. Purpose of Solicitation

The purpose of this solicitation is to fund research that improves the accuracy and operational value of tools used to forecast Behind-the-Meter (BtM) resources. These improvements will enable grid operators and electricity market participants to more effectively plan their generation reserves, capacity, and real-time operations, supporting a more reliable, efficient, cleaner, and cost-effective energy system for California ratepayers.

California’s grid operators rely on electricity demand forecasting models to accurately predict systemwide and local electricity needs. These forecasts are essential for ensuring grid reliability and operational efficiency, and the California Independent System Operator (CAISO) uses them to inform market mechanisms, schedule generation reserves, and finetune real-time dispatch and ancillary services. Load serving entities (LSEs) use forecasts to determine procurement needs in wholesale markets while investor-owned utilities (IOUs) use them to maintain power quality and service reliability. Market participants also depend on accurate forecasts to optimize operations and ensure the availability of low-cost resources.

Traditional forecasting methods primarily rely on historical trends and real-time weather data. However, the growing adoption of distributed energy resources (DERs) such as solar photovoltaic (PV) systems, battery energy storage systems (BESS), and electric vehicles (EVs) has introduced new challenges. Many of these DERs are located behind the customer meter and are not directly visible to grid operators. These BtM resources greatly impact the net load and reduce the accuracy of existing forecasting methods, a challenge often referred to as ”Masked Load.”

Advanced metering infrastructure (AMI) and other emerging data sources offer opportunities to improve visibility into BtM resource behavior. Efforts to improve access to these data are underway through the California Public Utilities Commission’s (CPUC) Data Working Group under Rulemaking R.22-11-013. However, the lack of standardized data formats and validation protocols continues to hinder collaboration and data sharing across agencies, utilities, and researchers. There is a need for a more consistent, privacy-compliant data infrastructure to support improved forecasting.

While existing forecasting models do incorporate BtM solar PV predictions, they tend to underperform during cloud cover and wildfire smoke events. Moreover, with the growing adoption of BtM resources, including more than 1,500 MW of installed BtM BESS in IOU territories and over 2 million EVs currently on the road, there is a need to enhance existing models or develop new approaches to better account for these resources and evolving climatic conditions.

The project awarded under this solicitation will develop new methods and advanced models to improve the performance and robustness of net load forecasting. These improvements will help CAISO and others to plan and operate the grid more effectively. Benefits will also extend to IOUs, LSEs, DER aggregators, and other market participants who rely on accurate, real-time forecasting of DER performance.

Expected outcomes include:

• Improved short-term net-load forecasting accuracy, particularly during high-variability conditions such as cloud cover and wildfire smoke;

• Enhanced visibility into the location and behavior of BtM resources, including BESS and EVs;

• Standardized, privacy-compliant data infrastructure to support forecasting and data sharing across planning agencies, utilities, and researchers;

• Integration of advanced forecasting methods into operational tools used by CAISO, IOUs, and other market participants;

• Reduced uncertainty in grid operations, enabling more efficient scheduling of generation reserves and ancillary services;

• Quantifiable ratepayer benefits through avoided curtailment, improved resource dispatch, and reduced infrastructure investment; and

• Scalable forecasting approaches that support California’s clean energy goals and growing DER adoption.

See Section II of this solicitation for eligibility requirements. Applications will be evaluated as described in Section IV of this solicitation.

Prospective applicants looking for partnering opportunities for this funding opportunity should register on the California Energy Commission’s Empower Innovation website at www.empowerinnovation.net

B. Key Words/Terms

Word/Term	Definition
Advanced Metering Infrastructure (AMI)	AMI is an integrated system of smart meters, communication networks, and data management systems that enables two-way communication between utilities and customers.
Applicant	An entity that submits an application to this solicitation.
Application	An applicant’s written response to this solicitation.
Authorized Representative	The person submitting the application who has authority to enter into an agreement with the CEC.
Battery Energy Storage System (BESS)	BESS is a technology that stores electrical energy for later use.
Behind-the-Meter (BtM) Resources	Energy resources (e.g., solar PV, BESS) located on the costumer’s side of the utility meter that allow customers to offset their energy consumption.
California Independent System Operator (CAISO)	CAISO is a non-profit Independent System Operator serving California and is responsible for managing the flow of electricity across high-voltage, long distance power lines; operating a competitive wholesale energy market; and overseeing transmission planning.
California Native American Tribe	A Native American Tribe located in California that is on the contact list maintained by the Native American Heritage Commission for the purposes of Chapter 905 of the Statutes of 2004 (Pub. Resources Code, § 21073).
California Tribal Organization	A corporation, association, or group controlled, sanctioned, or chartered by a California Native American tribe that is subject to its laws, the laws of the State of California, or the laws of the United States.
CAM	Commission Agreement Manager, the person designated by the CEC to oversee the performance of an agreement resulting from this solicitation and to serve as the main point of contact for the grant recipient.
CAO	Commission Agreement Officer, the person designated by the CEC to oversee the internal administrative processes and to serves as the main point of contact for solicitation applicants.
CBO	Community Based Organization, a public or private nonprofit organization of demonstrated effectiveness that: a) Has deployed projects and/or outreach efforts within the region (e.g., air basin or county) of the proposed disadvantaged or low-income community or similar community. b) Has an official mission and vision statements that expressly identifies serving disadvantaged and/or low-income communities. c) Currently employs staff member(s) who specialized in and are dedicated to – diversity, or equity, or inclusion, or is a 501(c)(3) non-profit.
Community Choice Aggregation (CCA)	CCA allows cities and counties to collectively purchase and/or generate electricity for residents and businesses, providing a local alternative to standard IOU energy supply.
CEC	State Energy Resources Conservation and Development Commission or , the California Energy Commission.
CEC funds	CEC funds are EPIC grant funds awarded under this solicitation. Also referred to as grant funds.
CEQA	California Environmental Quality Act, California Public Resources Code Section 21000 et seq.
California Public Utilities Commission (CPUC)	CPUC is a regulatory agency that regulates privately owned public utilities in the state of California, including electric power, telecommunications, and gas companies.
Days	Days refers to calendar days.
Disadvantaged Community	Communities designated pursuant to Health and Safety Code section 39711 as representing the top 25% scoring census tracts from CalEnviroScreen along with other areas with high amounts of pollution and low populations as identified by the California Environmental Protection Agency. (https://oehha.ca.gov/calenviroscreen/report/calenviroscreen-40)
Distributed Energy Resources (DER)	DERs are small-scale energy resources located close to the point of use on the distribution system.
Energy Equity	The fair distribution of benefits and burdens from energy production and consumption.
EPIC	Electric Program Investment Charge, the source of funding for the projects awarded under this solicitation.
Electric vehicle (EV)	EV is a motor vehicle whose propulsion is powered fully or mostly by electricity.
High-Resolution Rapid Refresh (HRRR) model	HRRR model is a National Oceanic and Atmospheric Administration weather prediction system that provides hourly, high-resolution, short-term forecast for the lower 48 United States and parts of North America.
IOU	Investor-owned utility, an electrical corporation as defined in California Public Utilities Code section 218. For purposes of this solicitation, it includes Pacific Gas and Electric Co., San Diego Gas and Electric Co., and Southern California Edison Co.
Key Performance Indicators (KPIs)	A quantifiable measure used to evaluate how effectively an individual, team, or organization is achieving specific objectives.
Load Serving Entity (LSE)	LSE is an entity that has the right and responsibility to provide electrical power to end users.
Low Income Community	Communities within census tracts with median household incomes at or below 80 percent of the statewide median income or the applicable low-income threshold listed in the state income limits updated by the Department of Housing and Community Development. (https://www.hcd.ca.gov/grants-and-funding/income-limits)
Major Subrecipient	A Subrecipient that is budgeted to receive $100,000 or more of CEC funds, not including any equipment or match funds that may be provide by the Subrecipient.
Mean Absolute Percentage Error (MAPE)	A commonly used metric to measure the accuracy of a forecast or predictive model, especially in fields like energy forecasting, economics, and demand planning.
National Oceanic and Atmospheric Administration (NOAA)	NOAA is a U.S. government agency within the Department of Commerce that studies and predicts the changes in the Earth’s atmosphere, oceans, and coasts.
NOPA	Notice of Proposed Award, a public notice by CEC staff that identifies proposed grant recipients.
Photovoltaics (PV)	PVs convert light into electricity using semiconductors that exhibit the photovoltaic effect, used in power generation and photosensors. A PV system employs solar modules, each comprising a number of solar cells, which generate electrical power.
Pilot Test	Small scale testing in a laboratory or testing on a small portion of the production line of the affected industry. Pilot tests help verify the design and validity of an approach, and adjustments can be made at this stage before full-scale demonstrations.
Pre-Commercial Technology	A technology that has not reached commercial maturity or been deployed at scales sufficiently large and in conditions sufficiently reflective of anticipated actual operating environments to enable the appraisal of operational and performance characteristics, or of financial risks.
Principal Investigator	The technical lead for the applicant’s project, who is responsible for overseeing the project; in some instances, the Principal Investigator and Project Manager may be the same person.
Project Manager	The person designated by the applicant to oversee the project and to serve as the main point of contact for the CEC.
Project Partner	A person or entity that contributes financially or otherwise to the project (e.g., match funding, provision of a test, demonstration or deployment site) and does not receive CEC funds.
Recipient	A person or entity receiving a grant award under this solicitation. “Recipient” may be used interchangeably with “grant recipient”.
Solicitation	This entire document, including all attachments, exhibits, addenda, written notices, and questions and answers (“solicitation” may be used interchangeably with “Grant Funding Opportunity” or “GFO”).
Subrecipient	A person or entity that receives grant funds directly from a grant Recipient and is entrusted to make decisions about how to conduct some of the grant’s activities. A Subrecipient’s role involves discretion over grant activities and is not merely just selling goods or services.
Sub-Subrecipient	Has the same meaning as a Subrecipient except that it receives grant funds from a Subrecipient or any lower tier level of a Sub-Subrecipient.
State	State of California
TRL	Technology readiness levels are a method for estimating the maturity of technologies during the acquisition phase of a program. Source: U.S. Department of Energy, “Technology Readiness Assessment Guide”. https://www2.lbl.gov/dir/assets/docs/TRL%20guide.pdf.
Vendor	A person or entity that sells goods or services to the grant Recipient, Subrecipient, or any lower-tiered level of Sub-Subrecipient, in exchange for some of the grant funds, and does not make decisions about how to perform the grant’s activities. The Vendor’s role is ministerial and does not involve discretion over grant activities.

C. Project Focus

The project awarded under this solicitation will improve the accuracy and operational value of short-term net-load forecasts used by CAISO, other grid operators, and market participants. The project will develop techniques to leverage AMI data, and potentially other data sources, to better predict the location and behavior of BtM resources, with a focus on BESSs and EVs. The project will also advance methods for solar irradiance forecasting under challenging conditions like cloud cover and wildfire smoke. These enhancements will be integrated into existing net-load forecasting models or used to develop novel approaches to improve forecast accuracy from five minute to day-ahead horizons.

The project should complete the following tasks:

A) Coordinate with interested parties

Establish coordinated engagement with interested parties such as data access working groups (e.g., CPUC Data Working Group), state and federal agencies (e.g., CEC, NOAA), grid operators (e.g., CAISO, IOUs), market participants (e.g., CCAs, aggregators, equipment providers), and researchers. Describe the methods and frequency of coordination with the interested parties to ensure consistent and effective engagement. Align BtM forecasting priorities, modeling needs, and data access strategies for both public and private datasets. Establish clear protocols for data sharing, including standards for ownership, granularity, and consistent definitions, with a focus on transparency and clearly defined use cases for both research and operational forecasting.

B) Identify data sources

Identify and catalog data sources that can support forecasting of BtM resources, prioritizing publicly available datasets (especially those accessible through the CEC/CPUC Data Working Group), and using AMI data as a foundational input. Assess the suitability of datasets such as AMI, weather data, satellite-based solar irradiance maps, wildfire smoke plume models (e.g., AirFire-BlueSky), and NOAA’s High-Resolution Rapid Refresh (HRRR) model. If private data (such as smart inverter telemetry) is proposed, provide a clear justification and a plan to ensure that resulting models and methods remain accessible and usable beyond the duration of the project.

C) Standardize data collection

Develop standardized methods for ongoing data collection that support real-time net-load forecasting. This includes defining standard data formats, clear schemas, consistent reporting intervals, and robust metadata standards (such as location and resolution) while maintaining strict privacy compliance. The proposed framework should support recurring queries that help infer the location and performance of BtM resources and improve data interoperability across systems.

D) Perform data processing

Design a robust, modular data processing pipeline that supports efficient data intake, quality assurance, and integration with forecasting models. Include procedures for data cleaning, validation, anomaly detection, and gap-filling. The pipeline should unify diverse BtM datasets to provide consistent inputs for forecasting BESS, EV, and PV systems across time horizons ranging from five minutes to day-ahead.

E) Perform data analysis

Analyze refined BtM data to extract patterns, identify trends, and generate forecasts of DER behavior under a variety of operating and environmental conditions. This includes analyzing AMI-derived charging signatures, and potentially integrating supplemental telematics, to enhance understanding of BESS and EV behavior and location. It also includes correlating solar irradiance and wildfire smoke data to quantify PV energy production losses.

F) Integrate analysis into existing net-load forecasts

Incorporate BtM forecasting insights into existing net-load forecasting tools to improve system reliability and reduce uncertainty. This includes integrating BESS charge/discharge forecasts and adjusting solar production forecasts based on environmental factors. These enhancements should translate into precise load adjustments within models used by grid operators and market participants.

G) Propose new modeling techniques

If necessary, consider proposing new approaches to modeling techniques to increase the accuracy of and reliability of the five-minute to day-ahead forecasting.

H) Measure ratepayer benefits

Quantify the ratepayer benefits of improved BtM forecasting by linking model improvement to cost savings, such as reduced reserve requirements, avoided curtailment, better load and resource balancing, and avoided infrastructure costs.

Target Metrics and Key Performance Indicators (KPIs)

Applicants should clearly define quantifiable Key Performance Indicators (KPIs) that will be used to evaluate the effectiveness of their proposed forecasting improvements. KPIs should reflect measurable outcomes related to forecast accuracy, data processing efficiency, interested party usability, and economic impact. Applicants may propose additional KPIs tailored to their specific project design and use cases.

Below are example KPIs aligned with the core objectives of this solicitation. Applicants should describe how each proposed KPI will be measured, validated, and tracked over the course of the project. Where possible, baseline values and target improvements should be specified.

Category	Example KPIs
Forecast Accuracy	-Reduction in Mean Absolute Percentage Error (MAPE). -Reduction in forecast error during high-variability events by a defined percentage. -Increase in correlation coefficient between forecasted and actual net load. -Percentage reduction in large forecast deviations.
Data Processing and Usability	-Reduction in data processing time. -Increase in data completeness or quality score. -Number of entities (e.g., CAISO, IOUs, CCAs, Aggregators) actively using or testing the forecasting outputs. -Percentage of data sources integrated using standardized formats.
Operational Impact	-Reduction in reserve margin requirements due to improved forecast confidence. -Number of operational decisions informed by improved forecasts. -Increase in forecast-informed DER scheduling or Vehicle-to-Grid participation events.
Economic and Ratepayer Benefits	-Estimated cost savings from avoided curtailment, improved dispatch, or reduced procurement. -Estimated ratepayer savings from improved load shifting or demand response. -Avoided infrastructure investment due to improved EV clustering forecasts. -Value of improved PV forecasting during smoke or cloud events.

D. Funding

1. Amount Available and Minimum/ Maximum Funding Amounts

There is up to $3,000,000 available for grants awarded under this solicitation. The minimum funding amount is $1,000,000 per award. The maximum funding is $3,000,000 per award.

2. Match Funding Requirement

Applications must include a minimum 20 percent total match share percentage for this solicitation.

For the definition of match funding, see Section I K.

3. 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.

• Reallocate funding between any of the groups (if applicable)

• Aggregate funds from multiple groups to fully fund the highest ranked passing applications, regardless of group. (if applicable)

• 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.

E. Key Activities Schedule

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

ACTIVITY	DATE	TIME
Solicitation Release	October 22, 2025
Pre-Application Workshop	November 05, 2025	10:00 a.m.
Deadline for Written Questions	November 21, 2025	5:00 p.m.
Anticipated Distribution of Questions and Answers	[Week of December 05, 2025 ]Week of December 15, 2025
Support for Application Submission in ECAMS	Ongoing until [January 09, 2026] January 23, 2026	5:00 p.m.
Deadline to Submit Applications	[January 09, 2026] January 23, 2026	11:59 p.m.
Anticipated Notice of Proposed Award Posting Date	Week of [March 05, 2026 ]March 16, 2026
Anticipated Energy Commission Business Meeting Date	June 2026
Anticipated Agreement Start Date	June 2026
Anticipated Agreement End Date	June 30, 2030

F. 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: November 05, 2025, at 10:00 AM

Zoom Instructions:

To join the Zoom meeting, go to https://energy.zoom.us/j/88996592548?pwd=LxN2mMucHzlH6zSmHN78f3PIBlx6Qa.1 join and 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: 889 9659 2548

Meeting Password: forecast

Topic: GFO-25-303 Pre-Application Workshop

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.

G. Questions

During the solicitation process, for questions only related to submission of application in the new ECAMS system, please contact ECAMS.SalesforceSupport@energy.ca.gov . 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:

Chester Hong, Commission Agreement Officer

California Energy Commission

715 P, MS-1

Sacramento, California, 95814

Telephone: (916) 890-4694

E-mail: chester.hong@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 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.

H. 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 EPIC 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.

I. Additional Requirements regarding environmental review

• Time is of the essence. CEC funds available under this solicitation have encumbrance deadlines as early as June 30, 2026.  This means that the CEC must approve proposed awards at a business meeting (usually held monthly) prior to June 30, 2026, to avoid expiration of the funds.

• Environmental Review. Prior to approval and encumbrance, the CEC must comply with the California Environmental Quality Act (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:

o 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.

o 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.

o 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.

o 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.

J. Background

1. Electric Program Investment Charge (EPIC) Program

This solicitation will award projects funded by the EPIC, an electricity ratepayer surcharge established by the California Public Utilities Commission (CPUC) in December 2011. The purpose of the EPIC program is to benefit the ratepayers of three investor-owned utilities (IOUs), including Pacific Gas and Electric Co., San Diego Gas and Electric Co., and Southern California Edison Co. The EPIC funds clean energy technology projects that meet the guiding principles of (1) improving safety, (2) increasing reliability, (3) increasing affordability, (4) improving environmental sustainability, and (5) improving equity, all as related to California's electric system. In addition to providing IOU ratepayer benefits, funded projects must lead to technological advancement and breakthroughs to overcome the barriers that prevent the achievement of the state’s statutory energy goals. The EPIC program is administered by the CEC and the IOUs.

• Program Areas, Strategic Objectives, and Funding Initiatives

EPIC projects must fall within the following program areas identified by the CPUC:

o Applied research and development;

o Technology demonstration and deployment; and

o Market facilitation.

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

2012-2025 Electric Program Investment Charge (EPIC 4) Investment Plan

• Program Area: Applied Research & Development

• Strategic Objective: Increase the Value of Distributed Energy Resources to Costumers and the Grid

o Funding Initiative: Distributed Energy Resource Integration and Load Flexibility Initiative

Applicable Laws, Policies, and Background Documents

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

Laws/Regulations

• Disadvantaged & Low-income Communities

At least 25 percent of available Electric Program Investment Charge (EPIC) technology demonstration and deployment funding must be allocated to project sites located in, and benefiting, disadvantaged communities; and an additional minimum 10 percent of funds must be allocated to project sites located in and benefiting low-income communities. The CEC in administering EPIC must also take into account adverse localized health impacts of proposed projects to the greatest extent possible, and give preference for funding to clean energy projects that benefit residents of low-income or disadvantaged communities.

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