Call for Applications: 2023 Clean Transportation Program – California - fundsforNGOs

The California Energy Commission’s Clean Transportation Program (also known as the Alternative and Renewable Fuel and Vehicle Technology Program) provides funding to support innovation and accelerate the development and deployment of advanced transportation and fuel technologies.

Donor Name: California Energy Commission (CEC)

State: California

County: All Counties

Type of Grant: Grant

Deadline: 04/27/2023

Size of the Grant: $9.0 million

Details:

The Clean Transportation Program (also known as Alternative and Renewable Fuel and Vehicle Technology Program) invests up to $100 million annually in a broad portfolio of transportation and fuel transportation projects throughout the state. The Energy Commission leverages public and private investments to support adoption of cleaner transportation powered by alternative and renewable fuels.

The program plays an important role in achieving California’s ambitious goals on climate change, petroleum reduction, and adoption of zero-emission vehicles, as well as efforts to reach air quality standards. The program also supports the state’s sustainable, long-term economic development.

The Energy Commission is committed to providing opportunities to participate in and benefit from clean transportation projects for diverse, underrepresented, underserved, and disadvantaged communities throughout the state.

Using funds collected from vehicle and vessel registration, vehicle identification plates, and smog abatement fees, the program:

Expedites development of conveniently-located fueling and charging infrastructure for low-and zero-emission vehicle;
Accelerates advancement and adoption of alternative fuel and advanced technology vehicles, including low-and zero-emission medium- and heavy-duty vehicles;
Expands in-state production of alternative, low-carbon renewable fuel from low-carbon pathways; and support manufacturing and workforce training to help meet the needs of the state’s growing clean transportation and fuels market; and
Supports manufacturing and workforce training to translate clean technology investments into sustained employment opportunities.

Purpose of the Program

Clean Transportation Program (formerly known as the Alternative and Renewable Fuel and Vehicle Technology Program) announces the availability of up to $9.0 million to support ultra-low-carbon fuel in two funding categories: demonstration-scale and commercial-scale production facilities utilizing forest biomass.

Funding Information

The maximum awards based on the two Project Categories are as follows:

Category 1: Demonstration-Scale Fuel – Production 50 percent of total project costs or $3.0 million, whichever is less
Category 2: Commercial-Scale Fuel Production: Expansion of an Existing Facility – 50 percent of total project costs or $4.0 million, whichever is less
Category 2: Commercial-Scale Fuel Production: New Facility – 50 percent of total project costs or $5.0 million, whichever is less

The minimum award per project is $1 million for both the demonstration-scale and commercial-scale categories. The commercial-scale fuel production category contains two unique subcategories: New Facility and Expansion of an Existing Facility.

Funding Areas

Through the Clean Transportation Program, formerly known as the Alternative and Renewable Fuel and Vehicle Technology Program, the Energy Commission invests up to $100 million annually in projects that support adoption of cleaner transportation powered by alternative and renewable fuels.

Electric Vehicles & Charging Infrastructure: Electric vehicles have many advantages over traditional internal combustion engines, including zero tailpipe emissions.
Hydrogen Vehicles & Refueling Infrastructure: Hydrogen fuel cell electric vehicles have zero tailpipe emissions, and can be powered by domestically-produced renewable hydrogen.
Medium and Heavy-Duty Vehicles: Medium- and heavy- duty vehicles range from construction equipment to public transit and school buses, to last-mile delivery trucks.
Natural Gas Vehicles & Refueling Infrastructure: Zero-emission and natural gas vehicles are cleaner and more efficient alternatives to gasoline and diesel vehicles.
Biofuels: Biomethane, Diesel Substitutes, Gasoline Substitutes: Biofuels such as ethanol, biodiesel, renewable diesel, and biomethane have lower carbon emissions than conventional fossil fuels.
Workforce Development: The Clean Transportation Program is investing in manufacturing and workforce training, working with a variety of public and private partners.

Eligible Applicants

This solicitation is open to all public and private entities. To be eligible, applicants must have a business presence in California.

Eligible Projects Costs

Costs incurred for the following activities are eligible for CEC reimbursement or as the Applicant’s match share:

Facility pre-engineering and design.
Engineering plans and specifications.
Building and facility construction, modifications, and/or commissioning.
Asset and/or equipment acquisition, including terminal storage and infrastructure equipment.
Feedstock development activities.
Verification of advanced ultra-low-carbon fuel attributes and characteristics, and data collection and modeling.
Enhancement of commercial ultra-low-carbon fuel production technology.
Facility process efficiency improvements leading to reductions in GHG emissions.
Process improvements to accommodate lower carbon intensity feedstock and fuel production.

Project Requirements

To be eligible for funding, projects in both funding categories must meet all of the following requirements:

The proposed project must be located in California. Project construction and operations must also occur in California.
The proposed project must reduce GHG emissions from on-road motor vehicles through the produced fuel’s use as a transportation fuel.
The proposed project must use at least 60 percent or more of forest biomass as the primary feedstock.
To be eligible for funding in the Demonstration-Scale project category, the project must utilize at least 2.0 dry tons of feedstock per day with at least 60 percent or more from forest biomass.
The Commercial-Scale project category has two unique project subcategories: New Facility and Expansion of an Existing Facility. The eligibility of a project under each subcategory is as follows:
New Facility is a proposed project that:
Constructs and operates a new, ultra-low-carbon fuel production facility.
Produces at least 1.0 million Diesel Gallon Equivalents (DGE) per year of eligible fuel for on-road transportation use.
If the proposed project is located at an existing fuel production site, the new fuel production technology must be implemented as a stand-alone facility and be able to operate independently of the currently used fuel production technology.
Expansion of an Existing Facility is a proposed project that:
Constructs, modifies or installs equipment to increase production capacity of ultra-low-carbon fuel at an existing fuel production facility.
Increases production by at least 1.0 million DGE per year of eligible fuel for on-road transportation use.
Eligible ultra-low-carbon fuels for fuel production include biomethane, diesel substitutes, renewable hydrogen, and electricity for transportation use. For purposes of this solicitation, eligible ultra-low-carbon fuels from forest biomass include the following:
Biomethane is renewable natural gas produced from organic material.
Diesel substitutes. These include renewable diesel, biodiesel, or other suitable substitutes. These products can be used in pure form or blended.
Renewable Hydrogen. The renewable hydrogen must reduce on-road motor vehicle air emissions through use as a transportation fuel.
Electricity for Transportation Use. Electricity must be produced from an eligible feedstock and dedicated for use in transportation.
Gasoline substitutes (including ethanol, biobutanol, renewable gasoline or other suitable substitutes); sustainable aviation fuels; and marine fuel and other off-road fuel can be produced at the proposed production site. However, for scoring purposes, the Evaluation Committee will only consider the eligible fuels’ portion of the project. Costs specifically associated with expanding production of these other fuels will also not be eligible for funding.
The proposed project must produce a fuel with a calculated carbon intensity of 30 grams carbon dioxide equivalent per megajoule (gCO2e/MJ or less.
Repurposing of an existing CEC-funded project is not an eligible project type for funding under this solicitation. However, projects may co-locate at an existing CEC-funded project site if it will not reduce the existing project’s performance.

Eligible Feedstocks

For purposes of this solicitation, the project must use 60 percent or more of forest biomass as the primary feedstock. The remaining feedstock composition may be other waste or woody biomass to improve the sourcing feasibility of the proposed project. Biomass is defined as any organic material not derived from fossil fuels or inorganic greenhouse gases, including, but not limited to: