California Energy Commission Pre-Bid Workshop GFO Light HD to Medium HD Natural Gas Engine Integration and Demonstration Research September 18, 2015 Pilar Magaña Energy Research and Development Division California Energy Commission

Agenda Welcome and Introduction Natural Gas R&D Program – Transportation Research Area PON Background Overview of Grant Solicitation Application Manual Questions and Answers

California Energy Commission Housekeeping …In case of fire …Local facilities …Muting of WebEx during presentation …Q&A protocol

California Energy Commission Policy Drivers The following legislation and policy guide the Transportation subject area on meeting California's challenges: o Senate Bill 1250: Enabled PIER funds to be used for advanced transportation technologies that: Reduce air pollution and GHG emissions beyond applicable standards. Benefit electricity and natural gas ratepayers. o State Alternative Fuels Plan: Presents strategies and actions California must take to increase the use of alternative transportation fuels. o Assembly Bill 32: Calls for approximately 36% of the state’s 2020 GHG reduction targets to come from the transportation sector. o Assembly Bill 118: Creates a dedicated revenue stream for programs to fund air quality improvement projects and develop and deploy technology and alternative and renewable fuels.

California Energy Commission Transportation Research Goals The goals of transportation-related projects are to: Reduce carbon emissions Decrease petroleum usage Improve natural gas and electricity infrastructure capacity, reliability, and sustainability Improve air quality Increase the use of renewable natural gas for transportation

California Energy Commission General Approach to NGV R&D o Natural Gas Vehicles: Improve the commercial viability of advanced and high-efficient natural gas vehicle technology. o Natural Gas Vehicle Research Roadmap recommended RD&D key initiatives include: Engine Development and Vehicle Integration Fueling Infrastructure and On-board Storage Technical and Strategic Studies

California Energy Commission Context of this Research Natural gas market penetration has been constrained due to engine availability Lacking competitive natural gas engine market suitable for Class 3-7 vehicles Some applications require larger engine size – requires heavier transmissions and driveline components – a smaller engine option could be more cost effective while reducing carbon emissions.

California Energy Commission Purpose of the Solicitation The purpose of this solicitation is to support the development, integration and demonstration of advanced natural gas engines in light heavy-duty vehicle (LHDV) to medium heavy-duty vehicle (MHDV) applications. Research and Development is needed to integrate and demonstrate a high-performance engine that meets or exceeds future emission regulations while simultaneously providing the same performance benefits of similar diesel engines.

California Energy Commission Eligible Applicants and Requirements Open solicitation seeking proposals from public and private entities. Applicant must agree to use the version of the Natural Gas R&D Grant Program Terms and Conditions that corresponds to its organization. Applicants are required to register and be in good standing with the California Secretary of State to enter into an agreement with the Energy Commission. Preference points will be given to California-Based Entities (CBEs) during the evaluation process. (Attachment 12)

California Energy Commission Eligible Projects Eligible projects will demonstrate reciprocating internal combustion engines based on existing heavy-duty diesel engines of approximately six (6) to eight (8) liters displacement, and suited to power Class 3 through Class 7 vehicles. Natural gas engines systems developed and demonstrated under each project must demonstrate the following: –Integration of optimized and economically viable natural gas engine for near-term commercialization –Integrate current or near term production natural gas engine with appropriate aftertreatment into newly manufactured chassis and vehicle platforms

California Energy Commission Eligible Projects (cont’d) –Chassis integration must be performed by parties directly linked to the commercial product and must involve vehicle OEM. –Engine must be capable of achieving CARB and EPA certification to current 2010 on-road heavy-duty standards for the appropriate service class and all certification requirements must be comprehensively addressed either through this work effort or defined within a commercialization and emissions certification plan –On-road testing and demonstration of at least 3 vehicles in California

California Energy Commission Funding Information Up to $2 million of Research and Development Natural Gas funding is available under this solicitation for grant awards with the possibility of additional funding from related program sources with a maximum award amount of $1,000,000 per distinct project. Match Funding Requirements: Match funding is not required, however it will be considered under the scoring criteria. Match funding includes: o Cash and/or in-kind contributions In-kind contributions can include but not limited to: donated labor hours, equipment, facilities, and most property.

California Energy Commission Addendum Funding: o Funding amount available for this solicitation has increased from $1,657,000 to $2,000,000 o The maximum amount of funding that can be requested for each application has increased from $830,000 to $1,000,000 Application Manual Revisions: o Section I, Part G, Pre-Application Workshop, under technical support contact changed to Pilar Magaña at (916) o Section II, Part B, Project Requirements has been modified to remove and modify language. Revise Attachment 1 (Application Form) as follows: o Under Funding section, Project Group section has been removed. o Funding caps for groups under Amount Requested has been removed.

California Energy Commission Schedule ACTIVITYACTION DATE Solicitation ReleaseSeptember 3, 2015 Pre-Application WorkshopSeptember 18, 2015 Deadline for Written Questions by 5 p.m.September 22, 2015 Distribute Questions/Answers and Addenda (if any) to GFO Week of October 4, 2015 Deadline to Submit Applications by 3:00 p.m.November 3, 2015 Anticipated Notice of Proposed Award Posting DateDecember 2015 Anticipated Commission Business Meeting DateApril 2016 Anticipated Agreement Start DateJune 2016 Agreement Termination DateMarch 2019

California Energy Commission Selection and Award Process For the proposals submitted, a scoring committee will evaluate the projects using the scoring criteria described in Section IV of the Application Manual. The scoring committee may conduct optional interviews for clarification purposes. A minimum score of 70 (out of 100) is required to be eligible for funding. Project(s) will be recommended for funding starting with the highest ranked project meeting the minimum required score in each research topic area until all funds are exhausted.

California Energy Commission California Based Entities (CBEs) The California Energy Commission’s Public Interest Energy Research (PIER) Program will give a priority to “California based entities” (CBEs) when making awards (Public Resource Code (h)). An entity must meet all of the following requirements to be considered a CBE: o Either has its headquarters OR an office in California AND o Substantially manufactures the product OR substantially performs the research within California that is the subject of the award. Please Refer to Attachment 12

California Energy Commission Proposal Requirements Application form with original signature (Attachment 1) Executive summary –Project description, objectives, and goals Fact Sheet Project narrative –Identify research topic that has been chosen –Addresses each of the evaluation criteria –Discussion on how the project will will advance science and technology without duplicating existing work, and will provide clear benefits to natural gas ratepayers Project team description Scope of work with a task-by-task description of for each project. –See Work Statement Template (Attachment 6)

California Energy Commission Proposal Requirements Cont’d References and Work Products Commitment and Support letters (if applicable) Schedule –All work must be scheduled to be complete by June 2019 Budget Workbook (Attachment 7) –Must be filled out completely and accurately Prevailing wage compliance certificate (if applicable) CEQA worksheet CBE Questionnaire (if applicable) Contact List

California Energy Commission Proposal Guidelines One (1) original and six (6) copies of the proposal and a CD or USB Proposals should be typed using a standard 11-point Arial font and single spaced The original and copies must be labeled “Grant Funding Opportunity GFO ” and include the title of the application and applicants name Proposals should NOT contain confidential information

California Energy Commission Grounds for Rejection CEC reserves the right to reject any application and/or to cancel an award for any of the following circumstances: –It is received after 3:00 pm on November 3, 2015 –It contains false or intentionally misleading statements or references –It is intended to erroneously and fallaciously mislead the State in its evaluation of the application –It does not meet all Stage One screening criteria It contains confidential information The Applicant does not agree to the Terms and Conditions All required documents are completed Does not meet format requirements –The proposal proposes a project that has already been addressed or is being addressed –The proposal is not for a separate, distinct project from other proposals submitted by the same applicant

California Energy Commission Grounds for Rejection (Cont’d) –It is unsigned –The firm or individual has submitted multiple applications for each task –It does not literally comply or contains caveats that conflict with the PON and the variation or deviation is not material, or it is otherwise non-responsive –The bidder has previously completed a PIER agreement and is not compliant with repaying royalties (if applicable) –The applicant has received unsatisfactory evaluations from the Energy Commission or another California state agency. –The applicant is a business entity that is not in good standing with the California Secretary of State. –The applicant has not demonstrated that it has the financial capability to complete the project.

California Energy Commission Attachments 1.Application Form/Cover Page 2.Executive Summary 3. Fact Sheet 4.Project Narrative 5.Project Team 6.Scope of Work/Project Schedule 7.Budget Forms 8. CEQA Compliance Form (requires signature) 9. References and Work Product CBE Form 10. Contact List Template 11.Commitment and Support Letters (requires signature) 12.CBE Form

California Energy Commission Scoring Criteria Technical Merit and Need20 Technical Approach20 Impacts and Benefits for California20 Team Qualifications, Capabilities and Resources10 Budget and Cost Effectiveness10 Ratio of Direct Labor and Fringe Benefit Rates to Loaded Labor Rates 10 Match Funds10 Total Points100 Preference Points for California-Based Entities (awarded only to proposals with a minimum passing score of 70) 5

California Energy Commission Solicitation Documents Solicitation documents for Advanced Natural Gas Engine Ignition Systems Research: FO Please make sure to read all addendums

California Energy Commission Questions and Answers Written Questions are due: September 22, 2015 by 5 p.m. Please send all PON related questions to Crystal Presley-Willis, Agreement Officer at:

California Energy Commission Thank You! Questions & Answers