FundOpp_DE-FOA-0003015.pdf

FINANCIAL ASSISTANCE

FUNDING OPPORTUNITY ANNOUNCEMENT

Department of Energy (DOE) Office of Fossil Energy and Carbon Management

(FECM)

Enabling a Reduced Carbon Footprint for Carbon Dioxide Enhanced Oil Recovery (CO2-EOR)/Storage Field Test Sites in Unconventional Reservoirs Funding Opportunity Announcement (FOA) Number: DE-FOA-0003015

FOA Type: Initial Assistance Listing Number: 81.089, Fossil Energy Research and

Development

FOA Issue Date: 09/13/2023 Submission Deadline for Full Applications: 12/13/2023/11:59:59 PM

ET

Expected Date for Selection Notifications: 5/01/2024 Expected Date for Award: August 2024

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Registration Requirements

There are several one-time actions that must be completed before submitting an application in response to this Funding Opportunity Announcement (FOA) (e.g., register with the System for Award Management (SAM), obtain a Unique Entity Identifier (UEI) number, register with Grants.gov, and register with FedConnect.net to submit questions). It is vital that applicants address these items as soon as possible. Some may take several weeks, and failure to complete them could interfere with an applicant’s ability to apply to this FOA.

➢ SAM Applicants must register with SAM at https://www.sam.gov/ prior to submitting an application in response to this FOA (unless the applicant is exempt from those requirements under 2 CFR 25.110). Designating an Electronic Business Point of Contact (EBiz POC) and obtaining a special password called an MPIN are important steps in SAM registration. Failure to register with SAM will prevent your organization from applying through Grants.gov. The applicant must maintain an active SAM registration with current information at all times during which it has an active Federal award or application under consideration. More information about SAM registration for applicants is found at:

https://www.fsd.gov/gsafsd_sp?id=gsafsd_kb_articles&sys_id=650d493e1bab7c105 465eaccac4bcbcb.

NOTE: If clicking the SAM links do not work, please copy and paste the link into your browser.

Due to the high demand of SAM registrations and UEI requests, entity legal business name and address validations are taking longer than expected to process. Entities should start the SAM and UEI registration process as soon as possible. If entities have technical difficulties with the SAM registration or UEI validation process they should utilize the HELP feature on SAM.gov. SAM.gov will work entity service tickets in the order in which they are received and asks that entities not create multiple service tickets for the same request or technical issue. Additional entity validation resources can be found here: GSAFSD Tier 0 Knowledge Base - Validating your Entity.

➢ UEI Applicants must obtain an UEI from the SAM to uniquely identify the entity. The UEI is available in the SAM entity registration record.

NOTE: Subawardees/subrecipients at all tiers must also obtain an UEI from the SAM and provide the UEI to the Prime Recipient before the subaward can be issued.

https://www.sam.gov/ https://www.fsd.gov/gsafsd_sp?id=gsafsd_kb_articles&sys_id=650d493e1bab7c105465eaccac4bcbcb https://www.fsd.gov/gsafsd_sp?id=gsafsd_kb_articles&sys_id=650d493e1bab7c105465eaccac4bcbcb https://www.fsd.gov/gsafsd_sp?id=kb_article_view&sysparm_article=KB0058422&sys_kb_id=1b5f22581b2115102fe5ed7ae54bcb4e&spa=1

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➢ Grants.gov - Applicants must register with Grants.gov and set up your WorkSpace. You cannot submit an application through Grants.gov unless you are registered. Please read the registration requirements carefully and start the process immediately.

1) The Authorized Organizational Representative (AOR) must register at:

https://apply07.grants.gov/apply/OrcRegister

2) An email is sent to the E-Business (E-Biz) POC listed in SAM. The E-Biz POC must approve the AOR registration using their MPIN from their SAM registration.

More information about the registration steps for Grants.gov is provided at:

https://www.grants.gov/web/grants/applicants/registration.html

In addition:

o Add a Profile to a Grants.gov Account: A profile in Grants.gov corresponds to a single applicant organization the user represents (i.e., an applicant) or an individual applicant. If you work for or consult with multiple organizations and have a profile for each, you may log in to one Grants.gov account to access all of your grant applications. To add an organizational profile to your Grants.gov account, enter the UEI for the organization in the UEI field while adding a profile.

For more detailed instructions about creating a profile on Grants.gov, refer to:

https://www.grants.gov/web/grants/applicants/registration/add-profile.html o EBiz POC Authorized Profile Roles: After you register with Grants.gov and create an Organization Applicant Profile, the organization applicant's request for Grants.gov roles and access is sent to the EBiz POC. The EBiz POC will then log in to Grants.gov and authorize the appropriate roles, which may include the AOR role, thereby giving you permission to complete and submit applications on behalf of the organization. You will be able to submit your application online any time after you have been assigned the AOR role.

NOTE: When applications are submitted through Grants.gov, the name of the organization applicant with the AOR role that submitted the application is inserted into the signature line of the application, serving as the electronic signature. The EBiz POC must authorize people who are able to make legally binding commitments on behalf of the organization as a user with the AOR role;

this step is often missed and it is crucial for valid and timely submissions.

For more detailed instructions about creating a profile on Grants.gov, refer to:

https://www.grants.gov/web/grants/applicants/registration/authorize-roles.html

To track your role request, refer to:

https://www.grants.gov/web/grants/applicants/registration/track-role-status.html https://apply07.grants.gov/apply/OrcRegister https://www.grants.gov/web/grants/applicants/registration.html https://www.grants.gov/web/grants/applicants/registration/add-profile.html https://www.grants.gov/web/grants/applicants/registration/authorize-roles.html https://www.grants.gov/web/grants/applicants/registration/authorize-roles.html https://www.grants.gov/web/grants/applicants/registration/track-role-status.html https://www.grants.gov/web/grants/applicants/registration/track-role-status.html

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Questions relating to the registration process, system requirements, or how an application form works must be directed to Grants.gov at 1-800-518-4726 or support@grants.gov.

➢ FedConnect.net - Applicants must register with FedConnect to submit questions.

FedConnect website: www.fedconnect.net.

See Section IV for Application and Submission Information (including how to create a WorkSpace).

mailto:support@grants.gov http://www.fedconnect.net/

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Table of Contents

I. Funding Opportunity Description

A. Authorizing Statutes B. Background/Description

i. Background and Purpose

ii. Research and Development Community Benefits Plan (April 2023)

C. Objectives/Areas of Interest D. Applications Specifically Not of Interest

II. Award Information

A. Type of Application B. Type of Award Instrument C. Award Overview

i. Estimated Funding, Number of Awards, Anticipated Award Size, and Maximum DOE Share

ii. Estimated Project Period of Performance

III. Eligibility Information

A. General B. Eligible Applicants C. Cost Sharing

i. Cost Share Requirements

ii. Legal Responsibility

iii. Cost Share Allocation

iv. Cost Share Types and Allowability

v. Cost Share Verification

vi. Cost Share Contributions by FFRDCs

D. Compliance Criteria E. Responsiveness Criteria F. Number of Submittals Eligible for Review G. Questions Regarding Eligibility

IV. Application and Submission Information

A. Form and Content Requirements B. Full Applications

i. Application Package

ii. Content and Form of Full Application

iii. SF-424: Application for Federal Assistance

iv. Project/Performance Site Location(s)

v. Other Attachments Form

vi. Project Narrative File – Mandatory Other Attachment

vii. Summary for Public Release File (April 2023)

viii. Project Management Plan

ix. Resume File (April 2023)

x. SF 424A Budget Information – Non-Construction Programs (SF424) File

xi. Budget Justification File

xii. Subaward Budget Justification (if applicable)

xiii. Budget for DOE/NNSA FFRDC/NLs or non-DOE/NNSA FFRDC/NLs, (if applicable)

xiv. Authorization for DOE/NNSA FFRDC/NLs or non-DOE/NNSA FFRDCs/NLs (if applicable)

xv. Environmental Questionnaire

xvi. Cost Share Commitment Letters (if applicable)

xvii. Team Member Commitment Letter(s) - Required

xviii. Host Site Commitment Letter(s) - Required

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xix. SF-LLL: Disclosure of Lobbying Activities (if applicable)

xx. Waiver Requests (if applicable) (April 2023)

xxi. Data Management Plan

xxii. R&D Community Benefits Plan (April 2023) xxiii.Current and Pending Support (April 2023) xxiv.U.S. Competitiveness

xxv. Transparency of Foreign Connections xxvi.Potentially Duplicative Funding Notice

C. Post Selection Information Requests (April 2023) D. Submission Dates and Times E. Intergovernmental Review F. Other Submission and Registration Requirements

i. Registration Process

ii. Where to Submit

iii. Full Application Proof of Timely Submissions

iv. Electronic Authorization of Applications and Award Documents

G. Funding Restrictions (April 2023) H. Pre-Award Costs I. Pre-Award Costs Related to National Environmental Policy Act (NEPA) Requirements J. Performance of Work in the United States (Foreign Work Waiver) (April 2023)

i. Requirement

ii. Failure to Comply

iii. Waiver

K. Foreign Travel L. Equipment and Supplies M. Buy America Requirements for Infrastructure Projects (April 2023)

V. Application Review Information

A. Review Criteria

i. Compliance/Responsiveness Review

ii. Full Application Merit Review Criteria

B. Other Selection Factors

i. Program Policy Factors

C. Other Review Requirements

i. Risk Assessment (May 2023)

ii. Recipient Responsibility and Qualifications (May 2023)

D. Review and Selection Process

i. Merit Review

ii. Selection

iii. Discussions and Award

VI. Award Administration Information

A. Notices

i. Ineligible Submissions

ii. Full Application Notifications

B. Administrative and National Policy Requirements

i. Award Administrative Requirements

ii. Unique Entity Identifier Requirements and System for Award Management (April 2023)

iii. Uniform Commercial Code (UCC) Financing Statements

iv. Foreign National Participation (April 2023)

v. Export Control (April 2023)

vi. Statement of Federal Stewardship

vii. Statement of Substantial Involvement

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viii. Environmental Review in Accordance with National Environmental Policy Act (NEPA)

ix. Conference Spending

x. Indemnity

xi. Go/No-Go Review

xii. Interim Conflict of Interest Policy for Financial Assistance

xiii. Participants and Collaborating Organizations

xiv. Current and Pending Support

xv. Fraud, Waste and Abuse (April 2023)

xvi. Human Subjects Research (April 2023)

xvii. Flood Resilience (April 2023) xviii.Real Property and Equipment

C. Reporting

i. Reporting Requirements

ii. Subaward and Executive Reporting

D. Applicant Representations and Certifications

i. Lobbying Restrictions

ii. Nondisclosure and Confidentiality Agreements Representations

iii. Corporate Felony Convictions and Tax Liabilities Representations (March 2014)

VII. Questions/Agency Contacts

A. Questions B. Agency Contact

VIII. Other Information

A. Modifications B. Government Right to Reject or Negotiate C. Commitment of Public Funds D. Treatment of Application Information (April 2023) E. Evaluation and Administration by Non-Federal Personnel F. Intellectual Property Developed Under This Program (September 2021) G. Program Covered Under Special Protected Data Statute (December 2014) H. Energy Data eXchange (EDX) Requirements (December 2022) I. Notice Regarding Eligible/Ineligible Activities J. Notice of Right to Conduct a Review of Financial Capability K. Notice of Potential Disclosure Under Freedom of Information Act (FOIA) L. Requirement for Full and Complete Disclosure M. Retention of Submissions N. Protected Personally Identifiable Information O. Annual Compliance Audits P. Accounting System Q. Indirect Rates R. Prohibition on Certain Telecommunications and Video Surveillance Services or Equipment (April 2023) ..87 S. Prohibition Related to Foreign Government-Sponsored Talent Recruitment Programs (April 2023) T. Implementation of Executive Order 13798, Promoting Free Speech and Religious Liberty (November 2020)

U. Affirmative Action and Pay Transparency Requirements V. Foreign Collaboration Considerations

IX. Appendices

Appendix A – Cost Share Information

Appendix B – Waiver Requests: Foreign Entity Participation and Performance of Work in the United States .96

i. Waiver for Foreign Entity Participation as the Prime Recipient

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ii. Waiver for Performance of Work in the United States (Foreign Work Waiver)

Appendix C – Required Use of American Iron, Steel, Manufactured Products, and Construction Materials - Buy America Requirements for Infrastructure Projects (April 2023)

Appendix D – Statement of Project Objectives Template

Appendix E – Project Management Plan Template

Appendix F – Data Management Plan

Appendix G – R&D Community Benefits Plan Guidance

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I. Funding Opportunity Description

A. Authorizing Statutes

The programmatic authorizing statutes are:

• Public Law (PL) 95-91, DOE Organization Act; and

• PL 109-58, Energy Policy Act 2005.

Awards made under this announcement will fall under the purview of 2 Code of Federal Regulations (CFR) Part 200 as amended by 2 CFR Part 910.

B. Background/Description

i. Background and Purpose

Enhanced oil recovery (EOR) using carbon dioxide (CO2) as a miscible injectant to sweep residual crude oil from depleted, conventional reservoirs is a long established, successful enhanced recovery technique. More recently, with the growth in oil production from very low permeability “unconventional” reservoirs (also known as “tight oil” or “light tight” oil reservoirs), producing companies have begun to look at the possibility of using associated natural gas or CO2 as an injectant to enable EOR in these reservoirs, which have been developed using hydraulically fractured horizontal wells. To date, the published literature shows that there is potential for incremental oil recovery using alternating injection and production (“huff-n-puff”) methods involving enriched natural gas. The potential for using CO2 as an injectant, however, has not been widely investigated. U.S. unconventional oil formations, including the Bakken Shale, the Niobrara Formation, Barnett Shale, the Eagle Ford Shale, and a variety of Permian Basin plays among others, could represent an opportunity for research into the feasibility of CO2 injection as a means for improved incremental oil recovery while creating an opportunity to minimize environmental impacts through associated geologic carbon storage with that production. The formations listed above are for example only and not meant to be all inclusive. Unconventional shale reservoirs are of interest, but other “tight oil” unconventional reservoirs are also of interest.

While the supply of CO2 for EOR currently is limited and generally confined to a few locations with accumulations of naturally occurring geologic CO2, in the future, expanded efforts to limit the emission of CO2 to the atmosphere through regulation could lead to a much greater supply of anthropogenic CO2, that could make it widely available across multiple unconventional oil https://www.congress.gov/bill/95th-congress/senate-bill/826 https://www.congress.gov/bill/109th-congress/house-bill/6/text

DE-FOA-0003015 Page 10 of 121 producing plays. Concurrently, as thousands of unconventional oil-producing wells begin to reach their economic limits, miscible CO2 could be a suitable enhanced recovery technology. There is also potential for a portion of the CO2 injected during the EOR process to be stored permanently in the reservoir. Associated CO2 storage as a part of tertiary EOR operations is an opportunity to minimize CO2 emissions to the atmosphere and other sensitive receptors (such as potable groundwater resources) and represents a potential positive climate impact, critical to DOE’s mission of environmentally prudent stewardship of energy resources.

Meeting industry investment metrics for CO2-EOR in unconventional reservoirs would likely require, at a minimum:

• a reliable, long-term, low-cost supply of “pure” CO2 (purity greater than 95%) at pressure, available near oil-producing plays;

• appropriate crude oil prices;

• transparent and favorable state and Federal regulations regarding permitting of both EOR and carbon storage operations;

• tax credits for carbon storage during EOR operations;

• reasonable capital and operating costs for the equipment required to separate and compress CO2 prior to injection; and

• reasonable long-term costs associated with monitoring the permanent storage of the CO2 injected.

In anticipation of a future scenario where all these requirements are met, DOE is investing in research through a field laboratory well (or wells) established in collaboration with industry and academic research partners to expand public understanding of: (1) the overall effectiveness of CO2-EOR in unconventional oil reservoirs, (2) the possibility of combining EOR and associated CO2 storage in horizontal, hydraulically fractured unconventional oil wells, and (3) the potential for combining EOR and associated CO2 storage in a manner that results in a reduced carbon footprint oil classification for the incremental oil produced, aligned with the Administration’s “net zero” carbon economy by 2050 goal.

ii. Research and Development Community Benefits Plan (April 2023)

DOE is committed to investing in research and development (R&D) innovations that deliver benefits to the American public and leads to commercialization of technologies and products that foster sustainable, resilient, and equitable access to clean energy. Further, DOE is committed to supporting the development of more diverse, equitable, inclusive, and

DE-FOA-0003015 Page 11 of 121 accessible workplaces to help maintain the nation’s leadership in science and technology.

To support the goal of building a clean and equitable energy economy, projects funded under this Funding Opportunity Announcement are expected to (1) advance diversity, equity, inclusion, and accessibility (DEIA);

(2) contribute to energy equality; and (3) invest in America’s workforce. To ensure these objectives are met, applications must include a R&D Community Benefits Plan (R&D Community Benefits Plan) that addresses the three objectives stated above. See Section IV, “Application and Submission Information, R&D Community Benefits Plan” and the “R&D Community Benefits Plan” Appendix for more information on the R&D Community Benefits Plan content requirements.

C. Objectives/Areas of Interest

DOE is seeking applications that will utilize one or more fit-for-purpose horizontal, hydraulically fractured well or wells-of-opportunity in established unconventional oil plays to carry out field-validated CO2 injection experiments that will focus on the following topics:

• Assessment and validation of increases in incremental oil recovery and associated carbon storage through CO2 injection over time, including optimization of “huff-n-puff” or continuous injection, and production cycles and characterization of CO2 storage potential during and after the EOR process. A requirement of 18 months of CO2 injection is required for project(s) to be considered successful and to acquire sufficient data for analysis.

• Validation of innovative equipment configurations, injection strategies, conformance control strategies, and well designs that might make it possible to optimize CO2 injection and incremental recovery (e.g., U-tube wells to inject into lateral from the toe as well as from the heel of the horizontal lateral, WAG (water alternating gas) and/or surfactant, diverter, chemical injection strategies, use of downhole fiber optic cables to characterize the locations and volumes injected along the length of the lateral well bore).

• Characterization of CO2 diffusion and mobility in horizontal, fractured rocks with very low matrix permeability as a means to better understand reservoir specific sweep/placement efficiency and permanent CO2 storage opportunities.

• Assessment of risks associated with CO2 injection and unconventional reservoir management, including maintaining appropriate reservoir pressure above miscibility and below fracture pressure throughout the “huff-n-puff” process.

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• Best practices for monitoring, reporting, and verification (MRV) of injected CO2 throughout the lifecycle of injection, diffusion, sweep, and production, including the identification of potential leakage pathways outside the reservoir, wellbore integrity.

• In-situ characterization of the geomechanical and geochemical effects of CO2 injection and repressuring of the reservoir, their effect on the stimulated reservoir volume (SRV), and the relative contributions of CO2 miscible displacement and increased SRV on incremental oil recovery. Techniques focusing on optimizing and characterizing sweep efficiency, conformance control, associated storage mechanisms (adsorption, structural trapping) and their effects on EOR and carbon storage capabilities of unconventional reservoirs are of particular interest.

• Collection of data in support of a future carbon lifecycle assessment (LCA) to better understand the extent to which CO2-EOR technologies applied in unconventional reservoirs can reduce the carbon intensity of the incremental oil produced, as well as its broader environmental and climate impacts. For this FOA, net reduced carbon footprint oil refers to oil produced under carbon balance conditions where the mass of CO2 stored approaches the mass of CO2 emitted within a specific boundary. Data collected at the test site should include all the variables in the mass balance approach described under subpart RR of EPA’s Greenhouse Gas (GHG) Reporting Program.

Additional data should include the CO2 source and data on larger-framework environmental and climate impacts with the goal of answering the question of whether CO2 is the best enhanced oil recovery process to produce the same incremental oil.

The one Area of Interest (AOI) for this Announcement is:

AOI 1: Evaluating and Validating the Incremental Oil Production via CO2-EOR Injection in Unconventional Oil Reservoirs Using Horizontal, Hydraulically Fractured Wells and Assessing the CO2 Storage Potential

Research Sought

The confluence of two trends, (1) a growing presence of many horizontal, hydraulically fractured unconventional oil wells approaching their economic limits while draining reservoirs with a potentially large remaining oil resource in place, and

(2) an increase in the availability of anthropogenic CO2 supplies as market forces work to support carbon capture and storage, could provide an opportunity for combining CO2-EOR and CO2 storage in a manner that supports a reduction in net carbon emissions while maximizing recovery of a domestic energy resource.

However, R&D is needed to characterize how CO2-EOR methods can effectively be applied to these wells, if CO2 can be stored in these reservoirs at volumes sufficient to offset the carbon emitted by the produced incremental oil, and what technology

DE-FOA-0003015 Page 13 of 121 innovations will be required to provide a reasonable chance of this practice being widely applied.

The R&D objective of this area of interest is to advance the research topics described herein. Field-based validation of these research concepts will provide a basis for further research and for engaging with industry in advancing CO2-EOR practices on a larger scale than the field-scale validation project envisioned by this FOA.

The research applications solicited by this FOA must focus on the injection of a significant quantity CO2 into the subsurface via a horizontal, hydraulically fractured well (or wells) completed in an acknowledged unconventional oil play with significant production history and geologic characterization, and a comprehensive evaluation of the resulting effect on crude oil recovery through “huff-n-puff” or continuous CO2 injection. A minimum of 18 months of actual CO2 injection is required for project(s) to be considered successful and to acquire sufficient data for analysis. Note this is not the number of months in a cycle (e.g. injection and production) but only the number of months CO2 is actually injected into the reservoir through the entire wellbore.

Project teams will collect geophysical, geochemical, and geomechanical data to better inform future resource development. In addition, data collected on reservoir fluids (both pre- and post-injection) should include a full suite of organic and inorganic constituents, including the presence of any rare earth elements and other critical minerals to be published as part of the NETL National Energy Water Treatment and Speciation (NEWTS) Database. Sample(s) of the core materials collected as part of this research project should be made available to the NETL Research Innovation Center (RIC) for supplemental analysis. In addition, if the Project team has existing core, they may also make samples available to the NETL Research Innovation Center (RIC) for supplemental analysis at no cost to the project.

Proposing teams must include at least one operating industry partner providing access to the required well(s) of opportunity, and at least one partner from an academic research institution or any other research organization. Other team members could include technology providers, service companies, or entities experienced in life cycle analysis, reservoir mass accounting, and MRV methodologies. A project team/consortium with multiple industry operators and diverse participants is highly recommended.

Technical elements that must be included in the applications are:

• Clear statement of how the application will address both the CO2-EOR and the

CO2 storage elements of the research objectives outlined above.

• Description of the applicant’s understanding of the current state-of-the-art regarding the application of CO2-EOR in unconventional oil reservoirs, including

DE-FOA-0003015 Page 14 of 121 equipment configurations, injection strategies, and well design for optimal performance.

• Detailed description of the well or wells to be used for the project and the applicant’s current understanding of the geology of the field area where injection will take place, including wellbores in proximity to the injection and production wells for reservoir monitoring and characterization.

• Description of the terms of access to the well (or wells) at the field site (or sites) and of the collaborative relationship between the research team lead and the well owner, if they are not the same.

• Detailed description of and access to a robust amount of existing reservoir characterization data and information prior to CO2 injection operations, prior production optimization/reservoir management data/information, including data on existing geologic structures within the reservoir, induced fracture geometry, geochemical data related to reservoir fluids and fluid, water, rock interaction, porosity, permeability, and diffusion data, and other mineralogical data that could better quantify and characterize CO2 adsorption and associated storage mechanisms during injection operations.

• Detailed description of the volumes of CO2 planned to be injected, the timing of injection periods, and the soak time and production sequences, including a discussion of conformance control strategies (including use of surfactants and other reservoir alteration approaches), that will be implemented to clearly demonstrate long-term CO2 storage potential and net reduced carbon oil production potential.

• Clear discussion of MRV activities associated with the proposed project, including in-situ reservoir monitoring elements throughout CO2 injection operations, such as geophysical, petrophysical, and pressure/temperature monitoring techniques that can clarify the movement and pressure front of CO2 through the reservoir and related geomechanical effects.

• Clear description of data to be collected to support a future LCA to assess carbon reduction potential of carbon capture, utilization and storage (CCUS) systems, including characterization of emissions intensity from the CO2 source, transport, the mass of CO2 stored and the mass balance used to estimate it, compression and injection equipment, associated CO2 storage mechanisms within the reservoir, production equipment, and end-use elements.

• Detailed description of the tasks and sub-tasks to be undertaken during the research project, with clearly stated milestones, objectives, and end products.

• Clearly defined statement of the likely challenges and obstacles to completing the proposed work and planned strategies for meeting these challenges and overcoming obstacles.

• A minimum of 18 months of CO2 injection is required for project(s) to be considered successful and to acquire sufficient data for analysis.

D. Applications Specifically Not of Interest

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The following types of applications will be deemed nonresponsive and will not be reviewed or considered (See Section III, Eligibility Information; Responsiveness Criteria):

• Submissions that fall outside the technical parameters specified in Section I, “Funding Opportunity Description; Objectives/Areas of Interest” of the FOA, including but not limited to the following:

o Applications that do not include a field laboratory element that involves injection of significant volumes of CO2 into a horizontal, hydraulically fractured well in a recognized unconventional oil play formation (including a minimum of 18 months of actual CO2 injection).

o Applications that do not include a team that includes at least one operating industry partner providing access to the required well(s) of opportunity and at least one partner from an academic research institution or any other research organization, o Applications that do not include letters of commitment and site access from operators and associated partner(s) (including universities or other R&D organizations) needed for the completion of the project, o Applications focused entirely on computer simulation of CO2-EOR in unconventional oil reservoirs.

o Applications that fail to address the CO2 storage and reduced carbon footprint oil aspects of the research objectives.

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II. Award Information

A. Type of Application

DOE will accept only new applications under this announcement.

B. Type of Award Instrument

DOE anticipates awarding cooperative agreements under this funding opportunity announcement (See Section VI, “Award Administration Information; Statement of Substantial Involvement”).

C. Award Overview

i. Estimated Funding, Number of Awards, Anticipated Award Size, and Maximum DOE Share

DOE expects to make Federal funding available for new awards under this FOA as follows:

*The DOE share listed under the anticipated individual award size is the maximum amount of DOE funding that can be proposed. Applications that propose a DOE share in excess of these limits will not be evaluated.

**Applicants may propose cost share in excess of 20% which could result in higher total award values than those stated above.

DOE may issue awards in one, multiple or none of the areas of interests.

APPLICATIONS WHICH EXCEED THE “MAXIMUM DOE SHARE OF AWARD”

SPECIFIED ABOVE WILL BE CONSIDERED NONCOMPLIANT (SEE SECTION III,

“ELIGIBILITY INFORMATION; COMPLIANCE CRITERIA”). DOE WILL NOT

REVIEW OR CONSIDER NONCOMPLIANT APPLICATIONS.

DOE may establish more than one budget period for each award and fund only the initial budget period(s). Funding for all budget periods, including the initial budget period, is not guaranteed. Funding for all awards and future budget periods are contingent upon the availability of funds appropriated by

Anticipated Individual Award Size Area of Interest

Estimated Federal Funding

Anticipated No. of

Awards DOE Share*

Cost Share**

Total

Maximum DOE Share of Award

1 $17,200,000 0-2 $8,600,000/80% $2,150,000/20% $10,750,000 $8,600,000 Total $17,200,000 0-2 $8,600,000/80% $2,150,000/20% $10,750,000 $8,600,000

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Congress for the purpose of this program and the availability of future-year budget authority.

Project continuation will be contingent upon satisfactory performance and go/no-go decision review. At the go/no-go decision points, DOE 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, DOE will make a determination to continue the project, re-direct the project, or discontinue funding the project.

ii. Estimated Project Period of Performance

The anticipated project period of performance for projects under this announcement is:

* A minimum of 18 months of CO2 injection is required

Typically, budget periods are established on an annual basis. In some cases, shorter or longer budget periods may be established for compelling programmatic or administrative reasons, such as to allow for project phases not evenly divisible with 12-month increments or to provide program personnel with logical decision points to evaluate whether the project should proceed.

Area of Interest Project Period of Performance 1 36-48 months*

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III. Eligibility Information

A. General

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.

B. 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 organized, chartered or incorporated (or otherwise formed) under the laws of a particular State or territory of the United States and have a physical location for business operations in 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. Domestic Public Entities (excluding Federal entities)

State, local, and tribal government entities are eligible to apply for funding as a Prime Recipient or Subrecipient.

Entities banned from doing business with the United States government such as entities debarred, suspended, or otherwise excluded from or ineligible for participating in Federal programs are not eligible.

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.

Federal entity eligibility is discussed below.

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iv. Federally Funded Research and Development Centers and National Laboratories

DOE/National Nuclear Security Administration (NNSA) Federally Funded Research and Development Centers (FFRDCs) and National Laboratories (NL) are eligible to apply for funding as a Subrecipient (only) but are not eligible to apply as a Prime Recipient. Non-DOE/NNSA FFRDCs and National Laboratories are eligible to apply for funding as a Subrecipient but are not eligible to apply as a Prime Recipient.

The scope of work to be performed by the FFRDC/NL as a subrecipient, may not be more significant than the scope of work to be performed by the Applicant.

The FFRDC/NL’s effort, in aggregate, shall not exceed ten (10) percent of the total estimated cost of the project, including the DOE Share, applicant share, and the FFRDC/NL's portions of the effort.

NETL is not eligible for award under this announcement and may not be proposed as a subrecipient on another entity’s application. An application that includes NETL as a prime recipient or subrecipient will be considered non-responsive.

Authorization. The cognizant contracting officer for the DOE/NNSA FFRDC/NL or the non-DOE/NNSA Federal agency sponsoring the FFRDC/NL contractor must authorize in writing the use of the FFRDC/NL on the proposed project and this authorization must be submitted with the application. The use of a FFRDC/NL must be consistent with its authority under its award and will not place the laboratory in direct competition with the domestic private sector.

The following wording is acceptable for this authorization:

"Authorization is granted for the [Name] Laboratory to participate in the proposed project. The work proposed for the laboratory is consistent with or complimentary to the missions of the laboratory, will not adversely impact execution of the [DOE/NNSA/or FEDERAL AGENCY] assigned programs at the laboratory, and will not place the laboratory in direct competition with the domestic private sector."

DOE will NOT fund DOE/NNSA FFRDCs participating as a subrecipient through the DOE field work authorization process. DOE will NOT fund non-DOE/NNSA FFRDCs through an interagency agreement with the sponsoring agency.

Therefore, the prime recipient and FFRDC are responsible for entering into an appropriate subaward that will govern, among other things, the funding of the

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FFRDC portion of the work from the prime recipient under its DOE award. Such an agreement must be entered into before any project work begins.

The applicant should prepare the budgets using rates appropriate for funding the FFRDCs through subawards. The applicant’s cost share requirement will be based on the total cost of the project, including the applicant’s, the subrecipient’s, and the FFRDC’s portions of the project.

Responsibility. The applicant, if successful, will be the responsible authority regarding the settlement and satisfaction of all contractual and administrative issues, including but not limited to, disputes and claims arising out of any agreement between the applicant and the FFRDC/NL.

v. Federal Entities

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.

vi. Foreign Entities

Foreign entities, whether for-profit or otherwise, are eligible to apply for funding as a Prime Recipient or Subrecipient 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.

Foreign entities may request a waiver of the requirement to designate a subsidiary in the United States as the Prime Recipient in the Full Application (i.e., a foreign entity may request that it remains the Prime Recipient on an award).

To do so, the Applicant must submit an explicit written waiver request in the Full Application. The “Waiver Requests: Foreign Entity Participation as the Prime Recipient and Performance of Work in the United States” Appendix lists the necessary information that must be included in a request to waive this requirement. The applicant does not have the right to appeal DOE’s decision concerning a waiver request.

In the waiver request, the applicant must demonstrate to the satisfaction of DOE that it would further the purposes of this FOA and is otherwise in the economic

DE-FOA-0003015 Page 21 of 121 interests of the United States to have a foreign entity serve as the Prime Recipient. DOE may require additional information before considering the waiver request.

vii. DOE/NNSA FFRDC Participation in Project Teams

DOE/NNSA FFRDC project team members funded directly by DOE must work with their fellow project team members under a cooperative research and development agreement (CRADA), unless otherwise approved by the Contracting Officer, to ensure accountability for project work and appropriate management of intellectual property (IP), e.g., data protection and background IP.

C. Cost Sharing

i. Cost Share Requirements

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/NL 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 part 200.306 as amended by 2 CFR part 910.130 for the applicable cost sharing requirements.

DOE understands that projects selected under this FOA may require the use of existing data. For purposes of this FOA, DOE will consider data that is commercially available at an established market price to be an allowable cost under the project (either as DOE share or non-federal cost share) but DOE will not consider in-kind data (e.g., data, owned by an entity, that is not routinely sold commercially but is instead donated to the project and assigned a value) to be an allowable cost under the project, including as Recipient cost share. Estimation methods used by the Recipient to assign a value to in-kind data cannot be objectively verified by DOE and therefore will not be accepted by DOE as an allowable cost under any project selected from this FOA. Consequently, DOE will not recognize in-kind data costs in any resulting approved DOE budget.

To assist applicants in calculating proper cost share amounts, DOE has included a cost share information sheet and sample cost share calculation in the “Cost Share Information” Appendix of this FOA.

ii. Legal Responsibility

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Applicants will be bound by the cost share proposed in their applications and incorporated into their award.

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.

iii. 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.

iv. Cost Share Types and Allowability

Every cost share contribution must be allowable under the applicable Federal cost principles, as described in Section IV, “Application and Submission Information; Funding Restrictions”. In addition, cost share must be verifiable upon submission of the Full Application. Cost share may be provided in the form of cash or cash equivalents, or in-kind contributions. Cost share must come from non-federal sources (unless otherwise allowed by law), such as project participants, state or local governments, or other third-party financing. DOE Loan Guarantee, cannot be leveraged by applicants to provide the required cost share or otherwise support the same scope that is proposed under a project.

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.

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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 Federal Government did not provide the funding to the state or local government.

The 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 for additional cost sharing requirements.

Please refer to the “Cost Share Information” Appendix of the FOA.

v. Cost Share Verification

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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 the “Cost Share Information” Appendix of the

FOA.

vi. Cost Share Contributions by FFRDCs

Because FFRDCs and NLs are funded by the Federal Government, costs incurred by FFRDCs and NLs generally may not be used to meet the cost share requirement. FFRDCs and NLs may contribute cost share only if the contributions are paid directly from the contractor’s Management Fee or another non-Federal source. In such instance, the FFRDC and NLs must certify in writing that the cost share comes from non-Federal sources.

D. Compliance Criteria

A review of all submitted documents and information is performed to determine if the submissions are in compliance with the FOA requirements. All submitted information and documents must meet all Compliance Criteria listed below to be eligible for review or the submission will be considered noncompliant. DOE will NOT review or consider noncompliant submissions.

Full Applications are deemed compliant if:

• The Full Application complies with the maximum DOE share of the individual award size in Section II, “Award Information; Award Overview” of the FOA;

• The Full Application complies with the content and form requirements in Section IV, “Application and Submission Information; Form and Content Requirements,” and Section IV, “Application and Submission Information;

Full Applications” of the FOA; and

• The applicant successfully uploaded all required documents and clicked the “Submit” button in Grants.gov by the deadline stated in the FOA. DOE will not extend the submission deadline for applicants that fail to submit required information by the applicable deadline due to server/connection congestion.

E. Responsiveness Criteria

A review of all submitted documents and information is performed to determine if the submissions are responsive to the FOA requirements. All submitted information and documents must meet all of the Responsiveness Criteria listed

DE-FOA-0003015 Page 25 of 121 below to be eligible for review or the submission will be considered non-responsive. DOE will NOT review or consider non-responsive submissions.

Full Applications are deemed responsive if:

- The application meets the technical requirements (including a minimum 18-month CO2 injection) as described in the “Objectives/Areas of Interest” contained in Section I, “Funding Opportunity Description” of the FOA; and

- The Applicant/application meets the Eligibility Criteria in Section III, “Eligibility Information” of the FOA.

Only compliant/responsive applications will be eligible for a comprehensive merit review.

F. Number of Submittals Eligible for Review

Applicants may submit more than one Full Application to this FOA. Each application must describe a unique, scientifically distinct project.

G. Questions Regarding Eligibility

DOE will not make eligibility determinations for potential applicants prior to the…