Clean Energy Fund Outreach Brian Young Clean Tech

Clean Energy Fund Outreach Brian Young Clean Tech Sector Lead WA Dept of Commerce Clean. Tech Alliance July 31 st, 2018 1

Clean Energy Fund OUTREACH Outreach is the key word here. For official answers on NOFO specific questions you must: Participate in the Bidder’s Conference • Tuesday, August 7 th, 2018, 2: 00 PM– 3: 00 PM PST via Skype; or, 2. Email your official question to: cef@commerce. wa. gov. 1. Information on the Bidder’s Conference via Skype and all official CEF RD&D documents can be found here: https: //www. commerce. wa. gov/growing-theeconomy/energy/clean-energy-fund/energy-rdd-clean-energyfund/

Clean Energy Fund – Overall Characteristics • This is the 3 rd tranche of Clean Energy Fund appropriations (often referred to as CEF 3) from the Biennial Capital Budget. “The appropriations are provided solely for projects that provide a benefit to the public through development, demonstration, and deployment of clean energy technologies that save energy and reduce energy costs, reduce harmful air emissions, or increase energy independence for the state. ” • “[B]enefit to the public” language allows use by private sector • Requires assets with the 13+ year useful life • Minimum 50% non-state match • All funds must be competed

Washington’s Clean Energy Fund $116 M fund focused on growing the states clean energy economy. 5 Active Programs: 1. 2. 3. 4. 5. 6. $24 M (16 M): R&D Matching Grants $39 M (28 M): Grid Modernization Grants to Utilities $28 M (25 M): Clean Energy Revolving Loan Fund $9 M Electrification of Transportation Program $4 M Solar Deployment Program $6 M: Renewable Energy Manufacturing Program Authorizing language: • Section 1013 of Substitute Senate Bill 6090 of the Capital Budget.

Clean Energy Fund Approach Research Development Demonstration FY 13/15 Smart Grid FY 15/17 Grid Modernization Deployment Renewable Manuf. FY 18/19 Grid Modernization Solar Depolyment Electrification of Transportation

Grant Matching Funds - $16 M • • • Focused on Washington research and development, either by research institutions or private enterprises. Help attract non-state R&D dollars to the state. Develop or demonstrate clean energy technologies that are viable but not commercially available. Think TRL 4 -5+. Changes to FY 15/17 CEF opened the fund up to match nonstate dollars, which enlarged the pool of eligible applicants and sources of money. Have seen extremely high demand for funding • Last round with ~$2. 2 M in available funding: ~25 projects, requesting ~$30 M in funding.

Grant Matching Funds –$16 M • • • PNNL/UW/WSU Transactive Campus Controls Grant addresses the key challenge of providing smooth, stable, and predictable “control” of PNNL, UW, and WSU “smart” assets via a regional renewables integration resource and R&D testbed. By continuing to support this ongoing U. S. Department of Energy (DOE)-funded Transactive Campus project, Washington State is on the leading edge of developing a modern, intelligent electrical distribution system that could change the way consumers interact with their utility and help realize significant efficiency savings. Pacific Marine Energy Center Grant will accelerate the development of next-generation arrays of wave energy conversion (WEC) and tidal energy conversion (TEC) devices through a suite of field-focused R&D activities by the Northwest National Marine Renewable Energy Center developed Advanced Laboratory and Field Arrays. Port of Port Angeles’ Composite Recycling Training Center (CRTC) will demonstrate viable commercial processes to create recycled carbon fiber materials with comparable strength and weight to virgin material for a fraction of the cost. The CRTC will create new opportunities to drive energy efficiency through lightweight materials for a variety of industries. CEF - $1. 1 M, Partner Funds: $3. 2 M. Microsoft, in partnership with Mc. Kinstry, is developing a fuel cell data center lab. The facility, located at Mc. Kinstry Seattle Innovation Center, will test and demonstrate highly efficient distributed fuel cell systems to power data centers and accelerate development of distributed fuel cell technology. Battery Informatics, Inc, is a start-up that spun out of University of Washington and is working on battery storage control systems that will greatly enhance the efficiency and lifespan of energy storage systems. Battery Informatics will acquire the capability to model and test the internal state of Lithium-ion batteries under various applications and conditions. Zunum Aero of Kirkland, WA, will develop the first commercial-class hybrid aircraft. Partners in this grant proposal include the Clean Energy Institute at the University of Washington, Pacific Northwest National Laboratory (PNNL) and the Grainger Center for Electrical Machinery and Electromechanics at the University of Illinois, Urbana-Champaign.

Grant Matching Funds –$16 M • • • Impact Bioenergy of Auburn, WA, will implement systematic, community-scale food waste biocycling on Vashon Island, WA. The decentralized system will eliminate the need to ship out food waste materials and bring in amendments like compost and fertilizer. Food waste will be converted to energy for heat, power and alternative fuel vehicles, liquid organic fertilizer and sequestered CO 2 used in agriculture and horticulture. Janicki Bioenergy of Sedro-Woolley, WA, will demonstrate their innovative vapor recompression distillation system that produces clean, potable water from dairy manure wastewater using thermal evaporation, steam compression, vapor recovery and water treatment. This grant will demonstrate the commercial viability of Janicki’s technology, which has the potential to provide global sanitation in places with no public water or sewer systems. Oscilla Power based in Seattle, WA, will use grant funds to design, build and test a community-scale wave energy converter. The project will validate a cost-effective approach to unlock the untapped potential of ocean waves to generate massive amounts of renewable electricity around the world. Partners in the project are Glosten Associates, a Seattle-based naval architecture and marine engineering firm, and Janicki Industries, an advanced composite materials tooling and manufacturing firm based in Sedro-Wooley. Dresser-Rand, a Siemens Business, will develop their Hydro. Air™ test facility in Redmond. The project will demonstrate, fabricate and assemble a Pneumatic Ocean Wave Test Facility to test Hydro. Air™, a variable radius turbine system that generates electric power from ocean waves. Edaleen Cow Power, LLC, a Lynden, Wash. -based company, will install an advanced solids/nutrient recovery system at its digester. This project will demonstrate and evaluate an emerging technology that extracts up to 35 percent nitrogen and 90 percent phosphorus from cattle waste. The opportunity to develop value-added products, such as fertilizers from waste, represents a major benefit to the dairy industry across the state and the nation.

Smart Grid Grants to Utilities - $28 M • • Grants to advance clean and renewable technologies and advance transmission and distribution control system improvements for increased reliability, resiliency, and integration of distributed and renewable technologies. Must be a retail electric utility to apply. Utility designs the project and puts forward a team. Utility advisory group and public comments guided program design All $28 M has been committed to 9 total projects.

Other CEF Funding Opportunities • Energy Revolving Loan Fund – $28 M • Open to non-profit lenders to develop debt funds to “[S]upport widespread use of proven energy efficiency and renewable energy technologies now inhibited by lack of access to capital. ” • Applications period closed July 31, 2018. • Electrification of Transportation - $11 M • Solar Deployment Grants - $4 M

For more information: Hans Berg hans. berg@commerce. wa. gov Phone: 360 -528 -7063 Thank you to Tom Ranken and the Clean. Tech Alliance for hosting! Clean Energy Fund Webpage: https: //www. commerce. wa. gov/growing-theeconomy/energy/clean-energy-fund/ Brian Young (206) 256 -6129 brian. young@commerce. wa. gov Clean. Tech Alliance July 31 st, 2018 11

Smart Grid Grants to Utilities – $15 M Avista was awarded a $3. 2 -million grant from the state to field test a 1 -MW, 3. 2 -MWhr Uni. Energy vanadium-flow battery assembly in a three-year demonstration project at a substation in Pullman, Wash. Total project cost, as proposed, exceeds $7. 6 million. Puget Sound Energy was awarded a $3. 8 million grant from the state to help deploy a 2 -MW, 4. 4 -MWhr lithium-ion/phosphate battery assembly at a substation in Glacier, WA. Total project cost, as proposed, exceeds $12 million. Snohomish PUD was awarded $7. 3 million in state grants for multiple demonstration projects. The PUD has been working with Seattle-based 1 Energy Systems for the past two years to implement Modular Energy Storage Architecture, a set of nonproprietary design and connectivity standards that provide a scalable approach for energy storage control system integration and optimization. Total project cost, as proposed, exceeds $23. 4 million. • The MESA 1 project will deploy two 1 -MW, 500 -MWhr lithium-ion battery based systems within one substation. These two large-scale lithium-ion battery assemblies, one built by LG Chem and a second by Mitsubishi-GS Yuasa, will each use a Parker Hannifin Power Conversion System. The battery assemblies were dedicated on January 15, 2015. • The MESA 2 project, at a different substation, will deploy multiple advanced vanadium-flow battery assemblies, built by Uni. Energy Technologies, having total combined ratings of 2 MW/6. 4 MWhr.

Smart Grid Grants to Utilities – $13 M Avista: Demonstrate the Micro Transactive Grid (MTG) facilitates sharing of distributed energy resources (DERs) through a controls platform which supervises, operates and optimizes utilization of DERs to improve building efficiency, renewable integration, DER utilization, grid coordination, and transactive energy. Avista and its team of partners propose to deploy solar and storage assets as well as integrate grid, building and DER control systems into the Avista Distribution System Platform (ADSP). Project Partners include Itron, Mc. Kinstry, PNNL, Schweitzer Engineering Laboratories, Uni. Energy Technologies (UET), and Washington State University (WSU), Energy Systems Innovation (ESI) Center. Seattle City Light: Create an islandable-microgrid located at a City of Seattle designated emergency shelter, consisting of a solar photovoltaic (PV) system coupled with an appropriately-sized battery energy storage system (BESS). The proposed project is envisioned to provide backup power to support critical emergency facilities and services during extended power outages. Project Partners include the Pacific Northwest National Laboratory (PNNL), University of Washington (UW) and Black & Veatch. Orcas Power & Light: Deploy a single versatile 0. 5 MW / 2. 0 MWh Energy Storage System (ESS) in an innovative configuration to provide four complementary functions that enhance community solar array output conditioning, peak shaving, load shifting, and battery backup to increase the grid’s resiliency and “capacity factor. ” Project Partners include UET and PNNL. Snohomish PUD: Demonstrate the multiple layers of value which can be realized when combining an energy storage system with microgrid technology, distributed generation resources, and a Vehicle to Grid (V 2 G) system. Sno. PUD will deploy solar PV system, utility scale energy storage systems, microgrid controllers, smart controllers (PV), smart inverters (PV), and state-of-the-art battery control systems. Project Partners may include vendors like Siemens, Blue Pillar, IPERC, Schweitzer Engineering Labs, Spirae, Green Energy Corp. , 1 Energy Systems, and the UW. Energy NW: Deploy a 4 MWDC photovoltaic solar (PV) project coupled with a 1 MW/4 MWh battery storage asset. The project will be designed to support a world-class competency-based training facility focused on providing education to attendees on all aspects of solar PV and battery storage plant construction, operations, maintenance, and repair. Project Partners include IBEW Local 77, Quanta Services/Potelco, UW's Clean Energy Institute, and the Regional Education & Training Center (RETC).

Energy Revolving Loan Fund – $15 M Craft 3 - $8. 7 M for commercial lending and $2. 9 M for residential lending Craft 3 is a nonprofit CDFI lender serving the rural and urban low-income communities of Oregon and Washington. Craft 3 is administering two clean energy loan programs: a commercial and a residential lending program. www. craft 3. org/cpw Puget Sound Cooperative Credit Union - $2. 9 for residential lending Puget Sound Cooperative Credit Union has offered financial services to the Puget Sound region since 1934. They are a not-for-profit banking alternative, owned by their members. PSCCU is administering a residential clean energy lending program. http: //www. psccu. org/about. php.

Energy Revolving Loan Fund –$10 M All funds contracted: Craft 3 - $4. 2 M for commercial lending to build on the existing Future Energy Fund. Puget Sound Cooperative Credit Union - $4 M for residential lending to build on existing successful program. Washington State Housing Finance Commission (WSHFC) - $1. 5 M for energy retrofits of multifamily and non-profit buildings, as well as loans to help develop community solar projects. WSHFC is a publicly accountable, self-supporting team, dedicated to increasing housing access and affordability and to expanding the availability of quality community services for the people of Washington.

Manufacturing Credit Enhancement – $6. 6 M • “[C]redit enhancements of advanced solar and renewable energy manufacturing” • Partnered with Washington Economic Development Finance Authority (WEDFA) for our Renewable Energy Manufacturing Program • Successful applicants receive an interest rate reimbursement equal to the lessor of $3 M or 80% of the value of the interest on the loan