(CLOSED) DE-FOA-0001750: Department of Energy (DOE) Office of Energy Efficiency and Renewable Energy (EERE) Flexible Combined Heath and Power for Grid Reliability and Resiliency

Sponsor Name: 
DOE of EERE
Amount: 
$10,000,000.00
Description of the Award: 

The U.S. Department of Energy’s (DOE) Office of Energy Efficiency and Renewable Energy’s (EERE) Advanced Manufacturing Office (AMO) seeks to conduct research and development activities to further the utilization of cost-effective, highly efficient combined heat and power (CHP) via Funding Opportunity Announcement (FOA) DE-FOA-0001750. The FOA includes two areas of interest to research enabling technologies for CHP systems that are specifically designed to provide cost-effective support to the electric grid. Such systems would have the benefits of conventional CHP while at the same time being able to sell electricity to and serve as a stabilizing factor for the Grid.

Funding Objectives

The FOA includes two areas of interest to research enabling technologies for CHP systems that are specifically designed to provide cost‐effective support to the electric grid. Such systems would have the benefits of conventional CHP while at the same time being able to sell electricity to and serve as a stabilizing factor for the Grid. This will shorten the time required to recover the costs of the system. The lower barrier to adoption will enable small to mid‐size manufacturers to gain the benefits of CHP systems while at the same time providing a resource to the grid so that it is more reliable, resilient and secure. In addition to addressing one of the below areas of interest, applicants must also demonstrate their plan for coordination with CHP Technical Assistance Partnerships/CHP Field Verifiers, state energy offices, or other entities to validate value to the grid of the proposed system capabilities in the field.

Area of Interest 1 – Power Electronics and Control Systems 
The objective of this Area of Interest is to research, develop, and test CHP components such as power electronics and control systems, needed to enable the cost‐effective use of new and existing CHP systems to provide support to the grid. Components must be capable of supporting CHP systems in the 1‐20 MWe size range.
Applicants must propose research on development of foundational power electronics and control systems that meet the following technical targets:

1. Megawatt scale power electronics equipment and controls systems must be designed to enable engagement of a CHP system operator with the electric power grid operator through generator and/or microgrid controls as defined by the Institute of Electrical and Electronic Engineers (IEEE) P1547 (Standard for Interconnection and Interoperability of Distributed Energy Resources with Associated Electric Power Systems Interfaces) and IEEE P2030.7 (Standard for the Specification of Microgrid Controllers). IEEE P1547 provides requirements relevant to the performance, operation, testing, safety considerations, and maintenance of the interconnection, universally needed for interconnection of Distributed Energy Resources. It also includes general recommendations, response to abnormal conditions, power quality, islanding, and test specifications as well as requirements for design, production, installation evaluation, commissioning, and periodic tests. IEEE P2030.7 focuses on defining functions and interface configurations that allow modularity and interoperability. It defines those aspects of Microgrid Controller operation that need to be standardized and those that can remain proprietary, while enabling the interoperability with various Distributed Energy Resources interfaces and facilitating the wide adoption by vendors and utilities. The standard is functionality‐driven and focuses on a modular approach that enables potential future expansion and features. Power electronics must be designed to enable CHP systems to meet the stringent requirements for interconnection at the distribution system level with high penetration of distributed generation, including utility‐interactive grid‐support functions and no impacts on power quality at the manufacturing site and other customer sites on the utility distribution system; compliance with IEEE P1547 and tested per UL 1741 SA procedures.
2. Power electronics equipment and control systems must be capable of being implemented into a variety of existing and future CHP systems with no major modifications providing a means to meet IEEE P1547 distribution grid requirement using a wide range of CHP generator technologies.
3. Power electronics and control systems must be capable of being installed at a cost that will minimize the final CHP system cost. Data must be provided to demonstrate that the installed cost for a full CHP system with the enhanced electronics and controls will be less than $1,800/KW.

Area of Interest 2 – Electricity Generation Components 
The objective of this Area of Interest is to research and develop the electricity generation component of a 1‐20 MWe CHP system capable of the following:

1. Reciprocating engine based CHP system must be able to operate at a fuel to electricity generation efficiency of 30% and must demonstrate a total CHP efficiency of 85% at 50% rated electrical capacity.
2. Gas turbine based CHP system must be able to operate at a fuel to electricity generation efficiency of 25% and must demonstrate a total CHP efficiency of 85% at 50% rated electrical capacity.
3. Reciprocating engine based CHP system must be able to operate at a fuel to electricity generation efficiency of 45% and must demonstrate a total CHP efficiency of 85% at rated electrical capacity.
4. Gas turbine based CHP system must be able to operate at a fuel to electricity generation efficiency of 40% and must demonstrate a total CHP efficiency of 85% at rated electrical capacity.
5. The units must demonstrate a capability of switching from 50% electrical capacity to maximum electrical capacity automatically based on an external request from the electricity grid system.
6. The units must also demonstrate a capability to ramp from 50% rated electrical capacity to 100% rated electrical capacity in less than 2 minutes.
7. Smaller sized units (>100 kWe) may be used to establish system performance. However, supporting computational models must be able to extrapolate the efficiency and emissions performance to CHP systems between 1 and 20 MWe.
8. The system must meet established emissions and grid connection requirements that exist in current potential markets. For example, for California:

  • Air Resources Board distributed generation (DG) emissions certification standards9 (NOx ≤ 0.07 lb./MWh, CO ≤ 0.1 lb./MWh and VOC ≤ 0.02 lb./MWh) at rated electrical capacity. Credit shall be applied at the rate of 1 MWh for each 3.4 million BTUs of heat recovered.
  • Independent System Operator (CAISO) direct telemetry requirements as outlined in CAISO’s Business Practice Manual for Direct Telemetry (Version 10) to allow for participation of the generating unit in California energy and ancillary services markets.

Interconnection standard requirements (Rule 2111), while also allowing manufacturing site operations to continue without compromising planned internal duty cycle of the plant (e.g. process steam production).

A. Award Overview

i. Estimated Funding

EERE expects to make approximately $10,000,000 of Federal funding available for new awards under this FOA, subject to the availability of appropriated funds. EERE anticipates making approximately 6‐10 awards under this FOA. It is estimated that individual awards may vary between $1,000,000 and $1,500,000 DOE Share.

ii. Period of Performance

EERE anticipates making awards that will run up to 36 months in length, comprised of one or more budget periods. Project continuation will be contingent upon satisfactory performance and go/no‐go decision review. At the go/no‐go decision points, EERE will evaluate project performance, project schedule adherence, meeting milestone objectives, compliance with reporting requirements, and overall contribution to the program goals and objectives. As a result of this evaluation, EERE will make a determination to continue the project, re‐direct the project, or discontinue funding the project.

iii. New Applications Only

EERE will accept only new applications under this FOA. EERE will not consider applications for renewals of existing EERE‐funded awards through this FOA.

B. EERE Funding Agreements

Through Cooperative Agreements and other similar agreements, EERE provides financial and other support to projects that have the potential to realize the FOA objectives. EERE does not use such agreements to acquire property or services for the direct benefit or use of the United States Government.

i. Cooperative Agreements

EERE generally uses Cooperative Agreements to provide financial and other support to Prime Recipients.
Through Cooperative Agreements, EERE provides financial or other support to accomplish a public purpose of support or stimulation authorized by Federal statute. Under Cooperative Agreements, the Government and Prime Recipients share responsibility for the direction of projects.
EERE has substantial involvement in all projects funded via Cooperative Agreement. See Section VI.B.ix of the FOA for more information on what substantial involvement may involve.

ii. Funding Agreements with FFRDCs

In most cases, Federally Funded Research and Development Centers (FFRDC) are funded independently of the remainder of the Project Team. The FFRDC then executes an agreement with any non-FFRDC Project Team members to arrange work structure, project execution, and any other matters. Regardless of these arrangements, the entity that applied as the Prime Recipient for the project will remain the Prime Recipient for the project.

Eligibility Information

To be considered for substantive evaluation, an applicant‘s submission must meet the criteria set forth below. If the application does not meet these initial requirements, it will be considered non-responsive, removed from further evaluation, and ineligible for any award.

A. Eligible Applicants

i. Individuals

U.S. citizens and lawful permanent residents are eligible to apply for funding as a Prime Recipient or Subrecipient.

ii. Domestic Entities

For‐profit entities, educational institutions, and nonprofits that are incorporated (or otherwise formed) under the laws of a particular State or territory of the United States are eligible to apply for funding as a Prime Recipient or Subrecipient. Nonprofit organizations described in section 501(c)(4) of the Internal Revenue Code of 1986 that engaged in lobbying activities after December 31, 1995, are not eligible to apply for funding.

iii. Foreign Entities

Foreign entities, whether for‐profit or otherwise, are eligible to apply for funding under this FOA. Other than as provided in the “Individuals” or
“Domestic Entities” sections above, all Prime Recipients receiving funding under this FOA must be incorporated (or otherwise formed) under the laws of a State or territory of the United States. If a foreign entity applies for funding as a Prime Recipient, it must designate in the Full Application a subsidiary or affiliate incorporated (or otherwise formed) under the laws of a State or territory of the United States to be the Prime Recipient. The Full Application must state the nature of the corporate relationship between the foreign entity and domestic subsidiary or affiliate.

A foreign entity may receive funding as a Subrecipient.

State, local, and tribal government entities are eligible to apply for funding as a Prime Recipient or Subrecipient.
DOE/NNSA Federally Funded Research and Development Centers (FFRDCs) are eligible to apply for funding as Subrecipient, but are not eligible to apply as a Prime Recipient.
Non‐DOE/NNSA FFRDCs are eligible to apply for funding as a Subrecipient, but are not eligible to apply as a Prime Recipient.
Federal agencies and instrumentalities (other than DOE) are eligible to apply for funding as a Subrecipient, but are not eligible to apply as a Prime Recipient.

iv. Incorporated Consortia

Incorporated consortia, which may include domestic and/or foreign entities, are eligible to apply for funding as a Prime Recipient or Subrecipient. For consortia incorporated (or otherwise formed) under the laws of a State or territory of the United States, please refer to “Domestic Entities” above. For consortia incorporated in foreign countries, please refer to the requirements in “Foreign Entities” above.

Each incorporated consortium must have an internal governance structure and a written set of internal rules. Upon request, the consortium must provide a written description of its internal governance structure and its internal rules to the EERE Contracting Officer.

v. Unincorporated Consortia

Unincorporated Consortia, which may include domestic and foreign entities, must designate one member of the consortium to serve as the Prime Recipient/consortium representative. The Prime Recipient/consortium representative must be incorporated (or otherwise formed) under the laws of a State or territory of the United States. The eligibility of the consortium will be determined by the eligibility of the Prime Recipient/consortium representative under Section III.A of the FOA.
Upon request, unincorporated consortia must provide the EERE Contracting Officer with a collaboration agreement, commonly referred to as the articles of collaboration, which sets out the rights and responsibilities of each consortium member. This agreement binds the individual consortium members together and should discuss, among other things, the consortium’s:
 Management structure;
 Method of making payments to consortium members;
 Means of ensuring and overseeing members’ efforts on the project;
 Provisions for members’ cost sharing contributions; and
 Provisions for ownership and rights in intellectual property developed previously or under the agreement.

A. Cost Sharing - Will need to get prior approval from college Research Dean

The cost share must be at least 20% of the total allowable costs for research and development projects (i.e., the sum of the Government share, including FFRDC costs if applicable, and the recipient share of allowable costs equals the total allowable cost of the project) and must come from non‐Federal sources unless otherwise allowed by law. (See 2 CFR 200.306 and 2 CFR 910.130 for the applicable cost sharing requirements.)

To assist applicants in calculating proper cost share amounts, EERE has included a cost share information sheet and sample cost share calculation as Appendices B and C to this FOA.

i. Legal Responsibility

Although the cost share requirement applies to the project as a whole, including work performed by members of the project team other than the Prime Recipient, the Prime Recipient is legally responsible for paying the entire cost share. The Prime Recipient’s cost share obligation is expressed in the Assistance Agreement as a static amount in U.S. dollars (cost share amount) and as a percentage of the Total Project Cost (cost share percentage). If the funding agreement is terminated prior to the end of the project period, the Prime Recipient is required to contribute at least the cost share percentage of total expenditures incurred through the date of termination.

The Prime Recipient is solely responsible for managing cost share contributions by the Project Team and enforcing cost share obligation assumed by Project Team members in subawards or related agreements.

ii. Cost Share Allocation

Each Project Team is free to determine how best to allocate the cost share requirement among the team members. The amount contributed by individual Project Team members may vary, as long as the cost share requirement for the project as a whole is met.

iii. Cost Share Types and Allowability

Every cost share contribution must be allowable under the applicable Federal cost principles, as described in Section IV.I. of the FOA. In addition, cost share must be verifiable upon submission of the Full Application.
Project Teams may provide cost share in the form of cash or in‐kind contributions. Cost share may be provided by the Prime Recipient, Subrecipients, or third parties (entities that do not have a role in performing the scope of work). Vendors/Contractors may not provide cost share. Any partial donation of goods or services is considered a discount and is not allowable.
Cash contributions include, but are not limited to: personnel costs, fringe costs, supply and equipment costs, indirect costs and other direct costs.
In‐kind contributions are those where a value of the contribution can be readily determined, verified and justified but where no actual cash is transacted in securing the good or service comprising the
contribution. Allowable in‐kind contributions include, but are not limited to: the donation of volunteer time or the donation of space or use of equipment. Project teams may use funding or property received from state or local governments to meet the cost share requirement, so long as the funding was not provided to the state or local government by the Federal Government.

The Prime Recipient may not use the following sources to meet its cost share obligations including, but not limited to:

 Revenues or royalties from the prospective operation of an activity beyond the project period;
 Proceeds from the prospective sale of an asset of an activity;
 Federal funding or property (e.g., Federal grants, equipment owned by the Federal Government); or
 Expenditures that were reimbursed under a separate Federal Program.

Project Teams may not use the same cash or in‐kind contributions to meet cost share requirements for more than one project or program.
Cost share contributions must be specified in the project budget, verifiable from the Prime Recipient’s records, and necessary and reasonable for proper and efficient accomplishment of the project. As all sources of cost share are considered part of total project cost, the cost share dollars will be scrutinized under the same Federal regulations as Federal dollars to the project. Every cost share contribution must be reviewed and approved in advance by the Contracting Officer and incorporated into the project budget before the expenditures are incurred.
Applicants are encouraged to refer to 2 CFR 200.306 as amended by 2 CFR 910.130 & 10 CFR 603.525‐555 for additional guidance on cost sharing.

iv. Cost Share Contributions by FFRDCs

Because FFRDCs are funded by the Federal Government, costs incurred by FFRDCs generally may not be used to meet the cost share requirement. FFRDCs may contribute cost share only if the contributions are paid directly from the contractor’s Management Fee or another non‐Federal source.

v. Cost Share Verification

Applicants are required to provide written assurance of their proposed cost share contributions in their Full Applications.
Upon selection for award negotiations, applicants are required to provide additional information and documentation regarding their cost share contributions. Please refer to Appendix A of the FOA.

vi. Cost Share Payment

EERE requires Prime Recipients to contribute the cost share amount incrementally over the life of the award. Specifically, the Prime Recipient’s cost share for each billing period must always reflect the overall cost share ratio negotiated by the parties (i.e., the total amount of cost sharing on each invoice when considered cumulatively with previous invoices must reflect, at a minimum, the cost sharing percentage negotiated). As FFRDC funding will be provided directly to the FFRDC(s) by DOE, Prime Recipients will be required to provide project cost share at a percentage commensurate with the FFRDC costs, on a budget period basis, resulting in a higher interim invoicing cost share ratio than the total award ratio.
In limited circumstances, and where it is in the government’s interest, the EERE Contracting Officer may approve a request by the Prime Recipient to meet its cost share requirements on a less frequent basis, such as monthly or quarterly. Regardless of the interval requested, the Prime Recipient must be up‐to‐date on cost share at each interval. Such requests must be sent to the Contracting Officer during award negotiations and include the following information: (1) a detailed justification for the request; (2) a proposed schedule of payments, including amounts and dates; (3) a written commitment to meet that schedule; and (4) such evidence as necessary to demonstrate that the Prime Recipient has complied with its cost share obligations to date. The Contracting Officer must approve all such requests before they go into effect.

Limit (Number of applicants permitted per institution): 
2
Sponsor Final Deadline: 
Mar 23, 2018
OSVPR Application or NOI Instructions: 

Interested applicants should send the following documents in sequence in one PDF no later than 8:00 a.m. on the internal submission deadline:

  • Cover Page (must include: the project title, the specific FOA Topic Area being addressed (if applicable), both the technical and business points of contact, names of all team) member organizations, and any statements regarding confidentiality.
  • Technology Description (2 pages maximum) Applicants are required to describe succinctly:

    • The proposed technology, including its basic operating principles and how it is unique and innovative;
    • The proposed technology’s target level of performance (applicants should provide technical data or other support to show how the proposed target could be met);
    • The current state‐of‐the‐art in the relevant field and application, including key shortcomings, limitations, and challenges;
    • How the proposed technology will overcome the shortcomings, limitations, and challenges in the relevant field and application;
    • The potential impact that the proposed project would have on the relevant field and application;
    • The key technical risks/issues associated with the proposed technology development plan; and
    • The impact that EERE funding would have on the proposed project.
  • Addendum (1 page maximum) Applicants are required to describe succinctly the qualifications, experience, and capabilities of the proposed Project Team, including:

    • Whether the Principal Investigator (PI) and Project Team have the skill and expertise needed to successfully execute the project plan;
    • Whether the applicant has prior experience which demonstrates an ability to perform tasks of similar risk and complexity;
    • Whether the applicant has worked together with its teaming partners on prior projects or programs; and
    • Whether the applicant has adequate access to equipment and facilities necessary to accomplish the effort and/or clearly explain how it intends to obtain access to the necessary equipment and facilities
  • Cost Sharing approval from college Research Dean
To be considered as a Penn State institutional nominee, please submit a notice of intent by the date provided directly below.
This limited submission is in downselect: 
Penn State may only submit a specific number of proposals to this funding opportunity. The number of NOIs received require that an internal competition take place, thus, a downselect process has commenced. No Penn State researchers may apply to this opportunity outside of this downselect process. To apply for this limited submission, please use this link:
OSVPR Downselect Deadline: 
Wednesday, March 14, 2018 - 8:00am