GFO-25-301 - Distributed Resources for Innovative Vehicle Energization Strategies (DRIVES)

GRANT FUNDING OPPORTUNITY

Distributed Resources for Innovative Vehicle Electrification Strategies (DRIVES)

EPIC Program

GFO-25-301

Addendum #1

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

State of California

California Energy Commission

September 2025

Table of Contents

I. Introduction 1

A. Purpose of Solicitation 1

B. Key Words/Terms 2

C. Project Focus 4

D. Funding 8

E. Key Activities Schedule 9

F. Notice of Pre-Application Workshop 10

G. Questions 11

H. Applicants’ Admonishment 12

I. Additional Requirements regarding environmental review 12

J. Background 13

K. Match Funding 19

L. Funds Spent in California 21

M. CEC's Rights and Remedies 21

II. Eligibility Requirements 22

A. Applicant Requirements 22

B. Project Requirements 24

III. Application Submission Instructions 26

A. Application Format, Page Limits 26

B. Method For Delivery 26

C. Application Content 27

IV. Evaluation and Award Process 32

A. Application Evaluation 32

B. Ranking, Notice of Proposed Award, and Agreement Development 32

C. Grounds to Reject an Application or Cancel an Award 33

D. Miscellaneous 34

E. Stage One: Application Screening 37

F. Stage Two: Application Scoring 39

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) 12 References for Calculating Energy End-Use and Greenhouse Gas Emissions

I. Introduction

A. Purpose of Solicitation

The purpose of this solicitation is to fund technology demonstration and deployment projects that increase the value proposition of distributed energy resources to customers and the grid. Specifically, this solicitation aims to expedite energization timelines, reduce ratepayer costs, and target other technical, regulatory, and operational barriers associated with commercial electric vehicle (EV) charging infrastructure paired with behind-the-meter (BTM) microgrids by incorporating advanced power control and energy management systems and energizing through investor-owned utility (IOU) flexible service agreements.

California’s climate and transportation policies – most notably Executive Orders N-79-20 and B-55-18 – set aggressive targets to achieve 100% zero-emission vehicle (ZEV) adoption and statewide carbon neutrality by 2045. These targets are expected to drive a sharp increase in EV deployment, significantly raising electricity demand. Meeting this anticipated increase in peak load demand with traditional grid infrastructure could cost up to $50 billion by 2035 and take years to implement, with circuit and substation upgrades ranging from two to nine years to complete. These delays could stall electrification project development and raise costs for ratepayers.

Co-locating BTM distributed energy resources (DERs), such as solar and storage, with EV charging infrastructure offers a promising path to reduce grid dependency, stabilize electricity costs, and enhance system resiliency. However, the deployment of DER-integrated commercial charging is hampered by lengthy, opaque permitting processes and by energization and interconnection frameworks that treat DERs and EV charging as separate systems rather than as integrated microgrids. In addition, technological innovations such as direct current (DC) microgrids could further enhance system efficiency and value but remain underused due to similar barriers.

The purpose of this solicitation is to accelerate the deployment of distributed energy generation- and storage-integrated commercial EV charging solutions that reduce reliance on traditional utility infrastructure upgrades, lower costs to ratepayers, and shorten project energization timelines. These solutions may be particularly impactful in areas along major California transportation corridors that face grid constraints but have ample potential for on-site renewable energy generation.

Projects must fall within the following project groups:

• Group 1: Commercial EV Charging with DC-Coupled Microgrids; and

• Group 2: Commercial EV Charging with AC-Coupled Microgrids.

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

Applicants may submit multiple applications, though each application must address only one of the project groups identified above. If an applicant submits multiple applications that address the same project group, each application must be for a distinct project (i.e., no overlap with respect to the technical tasks described in the Scope of Work).

B. Key Words/Terms

Word/Term	Definition
AC or DC	Alternating current or direct current
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.
BTM	Behind the Meter, refers to electricity generating and storage systems (e.g. solar PV, battery energy storage) that are connected on the customer’s side of the meter.
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.
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.
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)
DER	Distributed Energy Resource, refers to a decentralized energy system, such as solar panels, wind turbines, or battery storage, that generates or stores electricity near the point of use, rather than at a large, centralized power plant. DERs can be connected to the grid or operate independently to enhance energy reliability, efficiency, and sustainability.
Energy Equity	The fair distribution of benefits and burdens from energy production and consumption.
EV	Electric Vehicle
EVSE	Electric Vehicle Supply Equipment, that charging equipment that supplies electricity directly to an electric vehicle
EPIC	Electric Program Investment Charge, the source of funding for the projects awarded under this solicitation.
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.
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.
NOPA	Notice of Proposed Award, a public notice by CEC staff that identifies proposed grant recipients.
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.
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
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
UL	Underwriters Laboratories
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.
ZEV	Zero-Emission Vehicle

C. Project Focus

This solicitation aims to expedite energization timelines, reduce ratepayer costs, and target other technical, regulatory, and operational barriers associated with commercial EV charging infrastructure paired with BTM microgrids. Projects will strategically co-locate distributed renewable energy generation and storage with commercial EV charging, connect to a California IOU under a flexible service agreement, and evaluate opportunities for both ratepayer and customer savings. Awards will target both DC- (Group 1) and AC-integrated (Group 2) systems to advance the technical maturity of key supporting technologies. The expected outcomes include:

• A framework for evaluating co-located on-site renewable generation and storage as alternatives to distribution grid upgrades for grid-constrained, commercial EV charging;

• Increased commercial viability of UL 3141-certified power control systems;

• (Group 1 only) Improved commercial viability of DC-power electronics (e.g., solid state transformers, DC-DC converters/controllers); and

• Demonstrated strategies for load optimization in a variety of DER-paired EV commercial charging use cases.

Project Requirements for both groups

The following requirements must be addressed in the Project Narrative (Attachment 02) for both Group 1 and 2 applicants.

• Commercial EV Charging: Projects must be designed to provide charging solutions for electric vehicles in commercial settings. This includes charging infrastructure installed at businesses, fleet operations (en route or depot charging), public charging plazas, and other designated public locations. Charging for multifamily properties is considered commercial due to shared infrastructure.

• Participation in an IOU Flexible Service Pilot: Projects must be eligible for and enroll in either Pacific Gas & Electric’s (PG&E) “Flex Connect” or Southern California Edison’s (SCE) “Automated Load Control Management System (LCMS)” pilots. Each applicant must provide a letter of support from either PG&E or SCE staff confirming its eligibility for the pilot as part of its application package.

o PG&E: Request for partnerships with PG&E for EPIC projects can be submitted through PG&E’s Emerging Electric Technology Programs webpage (link: https://www.pge.com/en/about/corporate-responsibility-and-sustainability/taking-responsibility/emerging-electric-technology-programs.html).

o SCE: Request for partnerships with SCE for EPIC projects can be submitted through SCE’s IDEAS request form (link: https://sceideas.com/Idea/LetterofSupport).

• Microgrid Integration:

o Projects must integrate commercial electric vehicle supply equipment (EVSE) with an on-site BTM microgrid to directly serve the charging load and supplement limited utility energization through the flexible service agreement. Microgrids must include: distributed energy generation (e.g., solar PV, distributed wind, small hydro, geothermal), energy storage, and a sophisticated energy management system to coordinate on-site generation alongside utility power.

o Proposals must describe the size of the planned microgrid relative to the needs of the site and the constraints of their flexible service agreement demonstrating the optimal sizing of the microgrid infrastructure.

• Load control through UL 3141-Certified Power Control System: Projects must use UL 3141-certified power control systems that meet minimum requirements outlined by the Flex Connect or LCMS pilots, as applicable. These systems must be able to safely limit load as outlined by the pilots’ flexible service agreements and control (or coordinate with other power electronics that control) power from the grid alongside a BTM microgrid to support commercial EV charging infrastructure.

• Demonstration Site:

o The demonstration & deployment site must be located in a Disadvantaged Community per CalEnviroScreen 4.0 and in a California electric IOU service territory. Provide the site address and CalEnviroScreen score in the Application Form (Attachment 1).

o Proposal must discuss why the specific use case presents a compelling use for microgrid-integrated commercial EV charging. Discussion may include the grid constraints at the demonstration site and why it is a strong candidate for a flexible service agreement, the opportunity for distributed energy generation at the site (including the potential for future expansion), the site’s proximity to and ability to serve major transportation corridors, and the site’s potential for replicability across California.

• Analysis:

o Collect and analyze operational data for at least 12 months after installation is completed (including electricity cost reductions, grid consumption reductions, EVSE availability, and levelized cost of energy).

o Quantify opportunity for grid upgrade deferrals and assess associated ratepayer savings relevant to the CPUC’s High DER Proceeding (R.21-06-17) resulting from flexible service agreement and integration of on-site generation and storage (see Attachment 02, Technical Approach).

o Analyze energization timeline through IOU flexible service compared to traditional utility energization.

o All analyses compare the target metrics of the proposed solution directly to those of hypothetical alternative commercial EV charging scenarios: 1) energized through traditional utility energization without BTM microgrid, 2) energized through flexible service pilot without BTM microgrid, and 3) energized through traditional utility energization with interconnected BTM microgrid.

• Utility Rules and Tariffs: Awarded projects must be compliant with existing utility rules and tariffs for EVSE energization and DER interconnection.

• Community Engagement: Community-based organization (CBO) involvement is required for all projects. Proposals must describe which CBO they plan on working with and what they plan to accomplish. Examples of CBO activities include, but are not limited to public awareness campaigns, workforce development, direct public outreach, education on environmental justice, and education on how to participate in the public process.

• Engagement with Interested Parties: Coordinate participation of key parties, including charging providers, electric IOU(s) (flexible service pilot staff), charging equipment and/or service providers, construction/engineering personnel, the CPUC, and other awardees of CEC research funding focused on vehicle-grid integration.

Group 1 vs. Group 2 Research Considerations

Group 1: Commercial EV Charging with DC-Coupled Microgrids

Projects in this group will demonstrate charging systems directly integrated with DC-coupled microgrids, in which the distributed energy generation, storage, and EVSE operate within a unified DC architecture. These systems avoid energy conversion losses by minimizing AC/DC transitions, offering potential efficiency gains and cost savings—especially for high-power, high-utilization charging applications.

Group 2: Commercial EV Charging with AC-Coupled Microgrids

This group targets systems that use AC-coupled microgrids, where solar and storage resources are connected to the grid and EVSE through traditional AC infrastructure. These projects will refine integration strategies with the more mature and broadly compatible existing EVSE and utility technologies.

Key Differences Between Project Groups

Group	Group 1: DC-Integrated	Group 2: AC-Integrated
System Architecture	DC coupling	AC coupling
Target Technologies	DC-DC converters, solid-state transformers, UL-3141 power control systems	Inverters, AC-based energy management, UL-3141 power control systems
Primary Benefit	Efficiency, power density, future-readiness	Compatibility, scalability, and integration with current tech

Target Metrics

Projects should aim to demonstrate the value of microgrid-integrated commercial EV charging through the following metrics. This is not an exhaustive list, and applicants are encouraged to consider additional key performance indicators relevant to the specifics of their proposed demonstrations.

Metric	Description	Relevance
Energization Time	Time from project interconnection application to EVSE activation.	Demonstrates reductions in permitting and construction timelines when using IOU flexible service agreements, compared to traditional Rule 29/45 energization processes.
Ratepayer Investment Avoidance	Estimated cost savings from deferring or avoiding traditional utility infrastructure upgrades.	Assesses financial benefits of DER integration and flexible service approaches on ratepayers.
Additional Energy Use Enabled Through Flexible Service	Additional load served by the site beyond what would be allowed under static capacity.	Measures the value of advanced power control systems in enabling higher utilization without triggering costly grid upgrades.
DC Coupling Efficiency Improvements (Group 1 only)	Energy losses avoided by minimizing AC-DC and DC-AC conversions.	Quantifies the technical advantage of DC-integrated systems and informs future standards development.
Electricity Cost Reductions	Total electricity cost per kWh delivered to EVs, including grid and DER-supplied energy.	Demonstrates whether DER-paired systems deliver energy at a lower cost than unmanaged grid-only charging.
Grid Consumption Reductions	Percentage of total charging load met by on-site generation and storage systems alone.	Reflects the degree to which systems reduce demand on the utility grid.
Peak Load Reductions	Percentage of peak load met by on-site generation and storage systems alone.	Reflects the ability of microgrids to significantly reduce demand charges during peak hours.
EVSE Availability	Percentage of operational uptime for charging equipment during the demonstration period.	Ensures the systems are reliable and commercially viable for fleet or public use. Target: >95%.
Levelized Cost of Energy (LCOE)	LCOE of the combined system, including capital, Operations & Maintenance, and DER fuel savings.	Assesses long-term economic viability compared to unmanaged utility service.

D. Funding

1. Amount Available and Minimum/ Maximum Funding Amounts

There is up to $12,057,063 available for grants awarded under this solicitation. The total, minimum, and maximum funding amounts for each project group are listed below.

Project Group	Available CEC funding	Minimum CEC award	Maximum CEC award	Minimum total match share percentage
Group 1: Commercial EV Charging with DC-Coupled Microgrids	$4,500,000	$2,000,000	$4,500,000	30%
Group 2: Commercial EV Charging with AC-Coupled Microgrids	$7,500,000	$2,000,000	$3,750,000	30%

2. Match Funding Requirement

Applications for Groups 1 & 2 must include a minimum 30% 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

• 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	9/19/2025
Pre-Application Workshop	[10/2/2025] 10/6/2025	1:00 – 3:00 p.m.
Deadline for Written Questions	[10/10/2025] 10/14/2025	5:00 p.m.
Anticipated Distribution of Questions and Answers	[10/17/2025] 10/21/2025
Support for Application Submission in ECAMS	11/14/2025	5:00 p.m.
Deadline to Submit Applications	11/21/2025	11:59 p.m.
Anticipated Notice of Proposed Award Posting Date	Week of 1/19/2025
Anticipated Energy Commission Business Meeting Date	3/26/2026
Anticipated Agreement Start Date	5/1/2026
Anticipated Agreement End Date	5/31/2030

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: October [2] 6, 2025, from 1:00 - 3:00 p.m.

Zoom Instructions:

To join the Zoom meeting, go to https://zoom.us/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: 891 7468 5361

Meeting Password: drives

Topic: DRIVES 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:

Eilene Cary, Commission Agreement Officer

California Energy Commission

715 P, MS-1

Sacramento, California, 95814

Telephone: (916) 776-0739

E-mail: Eilene.Cary@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.

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 program, 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.

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