California Energy Commission soliciting proposals for new California-based low-carbon biofuel production facilities; about $37M available for awards

13 January 2012

The California Energy Commission is seeking proposals to provide funding for the development of new, California-based biofuel production facilities that can sustainably produce low carbon transportation fuels. (Program Opportunity Notice (PON-11-601) About $37 million dollars will be available under this solicitation.

The intent of this solicitation is to encourage production of alternative and renewable transportation fuels such as biomethane, renewable gasoline and diesel substitutes in California that can significantly reduce greenhouse gas (GHG) emissions and petroleum fuel demand, and stimulate economic development in the state.

• Eligible feedstocks for gasoline substitutes are waste-based biomass and purpose grown crops with a carbon intensity substantially lower than current average California produced ethanol using Midwest corn feedstocks (80.7 gCO₂-eq/MJ). Corn grain is not an acceptable feedstock.

• Eligible feedstocks for diesel substitutes are waste-based biomass and purpose grown crops with a carbon intensity substantially lower than soy (83.25 gCO₂-eq/MJ).

• Eligible feedstocks for biomethane are pre-landfilled waste-based biomass sources including but not limited to agricultural residues, woody biomass and forest residues, animal manures, food waste, and municipal solid waste (MSW) (if using MSW as a feedstock, only the biogenic fraction of the waste stream is eligible).

Funding will be available for new, low-carbon facilities, or for projects that lower the carbon intensity of fuels produced at existing facilities. Projects must demonstrate economically competitive yields and lower GHG potential than Low Carbon Fuel Standard (LCFS) pathways for corn ethanol or soy biodiesel.

This solicitation covers project activities in three development stages:

• Early Technology Development. This category includes projects that are in the early technology through proof-of- concept stage of development. This category includes research and development and is characterized by the design and testing of technology-prototype, development of the company, and improvements to intellectual property.

• Pilot and Demonstration Facilities. This category includes projects that propose pilot and/or demonstration production facilities. This stage is characterized by proving a technology or process in the field, developing the first pilot or demonstration facility at a site specific location, product development, and developing markets for the technology.

• Commercial Facilities. This stage is characterized by a production facility that can be scaled for revenue generation.

Background. Assembly Bill 118 created the Alternative and Renewable Fuel and Vehicle Technology Program. The statute, subsequently amended by AB 109, authorizes the Energy Commission to develop and deploy alternative and renewable fuels and advanced transportation technologies to help attain the state’s climate change policies. The Energy Commission has an annual program budget of approximately $100 million and provides financial support for projects that:

• Develop and improve alternative and renewable low-carbon fuels;
• Optimize alternative and renewable fuels for existing and developing engine technologies;
• Produce alternative and renewable low-carbon fuels in California;
• Decrease, on a full-fuel-cycle basis, the overall impact and carbon footprint of alternative and renewable fuels and increase sustainability;
• Expand fuel infrastructure, fueling stations, and equipment;
• Improve light-, medium-, and heavy-duty vehicle technologies;
• Retrofit medium- and heavy-duty on-road and non-road vehicle fleets;
• Expand infrastructure connected with existing fleets, public transit, and transportation corridors; and
• Establish workforce training programs, conduct public education and promotion, and create technology centers.

The deadline to submit proposals is 21 February 2012; CEC is holding a proposal workshop on 27 January.

Resources

• Solicitation PON-11-601