Questions and Answers

Advanced Freight Vehicle Infrastructure Deployment

January 29, 2018

These answers are based on the Energy Commission’s interpretation of the questions received. It is the applicant’s responsibility to determine whether or not their particular proposed project is eligible for funding, by reviewing the Eligibility Requirements within the solicitation. The Energy Commission cannot give advice as to whether or not a particular project is eligible for funding, because all proposal details are not known.

Eligibility

Q1. Must charging outlets be included in project proposals? Can a proposal include facility upgrades and stub-outs with no vehicle deployments during the project term?

A1. Electric infrastructure projects must include deployment of chargers for eligible vehicles; projects may also include funding for panels, conduit, and wiring at the facility level as well as upgrades to distribution infrastructure including meters and transformers to support current and future deployment of vehicles.

Applicants are required to include vehicle deployments that will utilize infrastructure investments during the project term. Applications may also include funding for facility upgrades and stub-outs to support future deployment of vehicles beyond the project term. Applications that propose a higher number of vehicle deployments during the project term will be scored higher (see Addendum #1).

Q2. Will entities that lease facilities where infrastructure will be deployed be eligible to apply?

A2. Addendum #1 clarifies that lessees of facilities where infrastructure will be deployed are eligible to apply, provided the terms of the lease do not expire prior to the end of the project period and the lessee provides a letter of commitment from the site owner.

Q3. Will fees charged by a utility provider (distribution line extension/service extension) be eligible for reimbursement?

A3. Yes, provided the utility fees support the project requirements specified in the solicitation. Please refer to Section II, Eligibility Requirements (page 8).

Q4. Due to the lack of maturity of BEVs (trucks), will grant funds used to install infrastructure be required to be returned to the California Energy Commission (CEC) if equipment or technology utilizing the infrastructureis determined to beunusablethrough testing?

A4. No, if the equipment is used in the project for which it was acquired for, but then is determined unusable, the CEC will not require that funds be returned. See Attachment C (Terms and Conditions), Section 12 (Equipment) of the solicitation which details requirements related to equipment purchased under an agreement.

However, applications should propose to use vehicle types that are nearing commercialization or have otherwise been proven reliable to minimize risks in this regard. Applications will be evaluated on the degree to which the equipment to be deployed is appropriate for the proposed projects and leads to successful deployment of freight vehicles. Please refer to scoring criteria #3, Implementation (page 26).

Q5. Are forklifts and rubber-tired gantry cranes considered eligible vehicle types?

A5. Yes.

Q6. Can a privately owned distribution center apply for funding?

A6. Yes, provided the project meets all other solicitation requirements.

Q7. Can applications include multiple project sites?

A7. Yes, provided the project meets all other solicitation requirements.

Q8. Can infrastructure deployments be open to the public?

A8. Yes, deployments of electric vehicle infrastructure may be open to the public for class 3-8 on-road vehicles or off-road cargo handling equipment. However, hydrogen infrastructure is limited to private-access stations only.

Q9. Is infrastructure for class 2 vehicles eligible?

A9. Infrastructure must be deployed for class 3-8 on-road vehicles or off-road cargo handling equipment.

Q10. Can you define public access versus private access for Hydrogen refueling?

A10. Public access infrastructure is infrastructure that is available for use by any class 3-8 on-road vehicle or off-road cargo handling equipment. Private access infrastructure is available only to authorized fleets where measures have been taken (such as granting “pin access”) to restrict fueling to only those fleets.

Q11. Can a third party operate H2 infrastructure at their facility and allow refueling by vehicles from adjacent fleets?

A11. Yes. Applicants must identify the fleet(s) authorized to utilize fueling in the project application.

Q12. Can a third party apply for CEC funds to install EVSE intended to support trucks servicing a warehouse?

A12. Yes, provided the equipment is utilized by eligible vehicle types and all other solicitation requirements are met. Please refer to Section II, Eligibility Requirements.

Q13. Can the EVSE be used by other vehicles not servicing a warehouse?

Yes, provided the equipment is utilized by eligible vehicle types and all other solicitation requirements are met. Please refer to Section II, Eligibility Requirements.

Q14. Do Airport Ground Support Equipment meet the definition of eligible vehicles?

A14. No.

Q15. Can airports that include FedEx facilities that deliver goods to end customers apply?

A15. Yes, provided infrastructure investments are utilized by eligible vehicles as defined in the solicitation for facilities that handle goods movement.

Q16. Can grant funds be used for vehicle purchases?

A16. No.

Q17. Can the 6 month deadline to obtain CEQA approval be extended for H2 projects? Or can other interim goals/considerations be given?

A17. The Energy Commission has tight funding liquidation schedules that require a maximum 6 month deadline from posting of the Notice of Proposed Award (NOPA) to CEQA determination. All projects must have obtained CEQA compliance before a recommended award is formally approved at an Energy Commission Business Meeting. Because CEQA compliance must be obtained prior to business meeting approval, CEQA approval could delay agreement execution.

Q18. Must a project be located in an invester owned utility (IOU) service territory?

A18. No.

Q19. Can an application including multiple project sites have some sites located in disadvantaged communities (DACs) while others are not?

A19. Yes, however applications will be evaluated on the degree to which their proposed projects benefit DACs.

Q20. Are solar, battery, PV, and microgrid controller costs eligible for reimbursement?

A20. Yes. Please see Addendum #1 that clarifies Energy Commission funding for Distributed Energy Resources (DER).

Q21. Does distributed energy resources (DER) have to be directly connected to chargers?

A21. Deployed DER utilizing Energy Commission funding must only be used for powering EVSE.

Q22. Are DERs (PV and batteries) connected to the same system that supplies power to EV chargers eligible for grant reimbursement?

A22. Yes, provided the DERs only supply power to the EVSE.

Q23. Is renewable natural gas (RNG) fueling infrastructure eligible?

A23. No.

Q24. Is renewable hydrogen production eligible?

A24. No. The Energy Commission recently released GFO-17-602 for Renewable Hydrogen Transportation Fuel Production Facilities and Systems. Potential Applicants are encouraged to apply to that funding opportunity if wishing to incorporate renewable hydrogen production.Yes. Please refer to Addendum #1. DER may be used for the on-site production of hydrogen for eligible vehicle types.

Funding and Budget Requirements

Q25. Is there any set amount of funding for distribution centers versus port facilities?

A25. No.

Q26. Can vehicle purchases during the term of the project be counted as match?

A26. Yes, provided the vehicle is an eligible vehicle type as defined in the solicitation.

Q27. Can CEC funds awarded under this solicitation be used as match for the California Air Resources Board’s (CARB) forthcoming Zero- and Near-Zero Emission Freight Facilities Project?

A27. CARB is proposing to allow funds awarded for demonstration or commercial deployment projects from any non-GGRF (Greenhouse Gas Reduction Fund) source to be able to count toward the in-kind match requirement under the Zero- and Near-Zero Emission Freight Facilities Project if the funded project’s timeline is in line with CARB’s requirements. CARB’s timeline will require that all equipment, vehicles or infrastructure be in place and operational to allow actual field demonstration of the technology for up to a year. CARB’s expenditure deadline for funds awarded under the Zero- and Near-Zero Emission Freight Facilities Project is March 2021.

Q28. How is vehicle match calculated if the planned voucher program for the vehicle purchase is not yet available?

A28. Vehicle match should include the total cost of the vehicle, including the fleets own funds used for purchasing the vehicle(s). Applicants will be scored in accordance with the Budget scoring criterion (page 27), so to the extent possible Applicants should demonstrate the degree to which match share funds are documented, committed, and readily available for the proposed project.

Q29. Can fully loaded rates be included in match calculations or only unloaded rates?

A29. No. The budget forms require that rates must be unloaded breaking out direct labor, fringe benefits, and indirect costs.

Scoring

Q30. Would match fund commitments higher than minimum required in the solicitation be given preference in scoring criteria?

A30. Yes. Please refer to scoring criteria #3 (Budget, page 27).

Q31. Is there a preference for the number of on-road vehicle types versus off-road?

A31. No.

Q32. Does the scoring criteria preference California manufacturing?

A32. Yes, provided the applicant demonstrates that manufacturing jobs are created or sustained in California during the proposed project. Please refer to scoring criteria #4 (Environmental and Economic Benefits, page 27).

Q33. Is there a preference for renewable hydrogen?

A33. Projects that incorporate renewable fuel(s) may receive higher scores in the Environmental and Economic Benefits section. Please refer to scoring criteria #4 (page 27).

Miscellaneous

Q34. When is the required project completion date?

A34. All work must be scheduled for completion by no later than March 31, 2022.

Q35. If a company supplies equipment to the applicant, are they considered a major subcontractor? Are they capped at 10% profit as is required for subcontractors?

A35. Companies that solely provide equipment without providing any other services are not considered major subcontractors and are not subject to the 10% profit cap. Instructions for equipment can be found in Budget (Attachment 5, page 11).

Q36. How should budget forms be filled out for major subcontractors if they are not selected prior to the time of application.

A36. Major subcontractors can be listed as TBD in the budget spreadsheets if unknown at time of application. Detailed spreadsheets will be developed during the term of the agreement once the subcontractor has been selected.

Q37. Will CEC consider making this a two-stage application process, including a preliminary application or concept paper stage?

A37. No.

Q38. Are all expenditures on a reimbursement basis? Must applicants have cash on hand to cover project expenses prior to requesting reimbursement from CEC?

A38. All expenditures are on a reimbursement basis. It is up to the applicant to determine how to handle their internal cash flow.

Q39. Is it ok to use a font size of 10 in tables?

A39. Font size must be no smaller than 11 per the requirements of the solicitation. Please refer to Section III, Application Format, Requirement Documents, and Delivery (page 14).

Page 1 of 6 GFO-17-603

Advanced Freight Vehicle Infrastructure

Deployment