FY 2019 EIC Application Instructions.pdf

U.S. Department of the Interior

OFFICE OF INSULAR AFFAIRS

ENERGIZING INSULAR COMMUNITIES PROGRAM (EIC)

Catalog of Federal Domestic Assistance (CFDA) Number: 15.875

FISCAL YEAR 2019 APPLICATION INSTRUCTIONS

I. Program Description

The Office of Insular Affairs (OIA) is requesting proposals for its Energizing Insular Communities (EIC) Program, which provides grant funding for energy projects and strategies that reduce the cost of electricity. This program is intended to support the Department’s priority to utilize our natural resources by ensuring American Energy is available to meet security and economic needs. The Office of Insular Affairs will use the following criteria in evaluating proposals:

• whether the proposal is identified and supported in the territory’s Strategic Energy Plan and/or Energy Action Plan; and

• the projected energy cost savings to consumers.

Multiple project proposals may be submitted, ranging from a minimum of $150,000 per project to the full $5,000,000 expected to be available. Satisfactory Energizing Insular Communities funding proposals will:

• provide a title, detailed narrative description, and budget for each proposed project;

• provide a complete timeline that demonstrates the project can be accomplished within 24 months;

• describe each proposed project's impact on foreign fuel imports and electricity costs as well as its connection to existing territory energy plans; and

• include the applicable SF-424 grant application forms.

EIC grant funds are not intended to supplant local funding for routine operating expenses of an insular government, utility, or organization. EIC grant funds are not intended to fund the salaries of local, existing employees though they may be utilized to provide temporary, short-term expertise from contractors or consultants to help carry out the project if approved in the proposed budget.

Eligible technologies for energy supply and energy efficiency projects should incorporate commercially available technology. This may include energy from any fuel source including fossil, solar, wind, geothermal, waste to energy, and biogas. Energy storage projects are eligible, as are transportation and grid feasibility studies.

Examples of projects that were awarded in previous years include: distributed solar, utility-scale solar, integrated resource planning, wind turbines, energy efficiency improvements (lighting, air conditioning, cool rooftop, etc.), net metering policies, debit meters, backup battery systems, microgrids, grid stability and integration studies.

Project proposals for grid studies or power generation, thermal and energy storage systems should include the following items to the extent applicable:

1. Estimated size of the proposed system including DC power and AC energy delivery of the system as appropriate. For wind and solar projects, the estimated energy delivery shall be based on average weather data for the proposed project site.

2. Estimated total price for proposed system. Show a breakout of the cost assumptions made for the major components.

3. Size of the energy load to be served.

4. Estimated energy cost savings (show calculations).

5. Location of proposed system and its square footage.

6. Insurance covering system damage and third-party liability.

7. Be constructed to withstand extreme but reasonably likely weather events such as typhoons/hurricanes.

8. Address whether the project improves the territory's disaster resilience.

9. Demonstrate that the chosen technology is commercially proven (tested and demonstrated, carries a warranty, has service and parts readily available), is ready for immediate deployment, and has financing available from private sector organizations.

10. Coordinate with utility to ensure that the proposed project satisfies all utility criteria for interconnection to the utility electric distribution system. This includes coordinating all negotiations, meeting with utility, design reviews, and participating in any needed interaction between utility and the proposed project.

11. Annual system operations and maintenance (O&M) cost. (Note: annual O&M costs over the life of the project are not allowable costs under the grant award and must be covered by the grantee).

12. Quantification of non-energy benefits, if any, such as reduction in water consumption, avoided infrastructure improvements, jobs created, etc.

13. A description of the territory's procurement rules and regulations applicable to the proposed project.

Project proposals for energy efficiency and conservation should incorporate the following items to the extent applicable:

1. Project location(s) and total price of project(s) with a breakout of costs and assumptions made for major system components.

2. Projected annual and lifetime energy savings (for both electrical and thermal energy as appropriate) as demonstrated by proposed energy consumption of the project as compared to an energy baseline taken from energy bill data. Anticipated annual energy savings must be at least 15% for the project to be considered. Supporting calculations should be provided.

3. Description of project scope including, for buildings: the number of buildings, square footage, and systems (HVAC, lighting, mechanical, building envelope, plug loads, water heating, etc.).

4. Energy conservation measures with a favorable payback period identified through an energy audit. Identify the level of audit already performed or to be performed:

American Society of Heating, Refrigerating, and Air-Conditioning Engineers (ASHRAE) Level 1: walkthrough assessment, Level 2: energy survey and analysis, or Level 3: detailed analysis/modeling.

5. Replacement of high energy consuming equipment/devices/processes/controls that are inefficient in their use (e.g. under or oversized, in the wrong application), are outdated/obsolete, or in poor operating condition with highly efficient (e.g. Energy Star certified) equipment/devices/processes/controls that are commercially available, able to be installed within 24 months, with proven success in similar applications, warrantied, with readily available service and parts, and available training/support to ensure successful operation & maintenance.

6. Quantification of impacts on the electricity grid, such as the extent of peak load reduction or system congestion relief.

7. An adequate level of energy metering/sub-metering to measure and verify ongoing project performance and energy savings.

8. A proposed commissioning, operations and maintenance plan, which describes the commissioning process, sequence of operations, equipment run times and schedules, energy metering, proposed set points, and other requirements to ensure energy efficient operations.

Note that not all energy efficiency or conservation projects are expected to meet all of the criteria above. An auditing project proposal won't be expected to quantify energy savings, for example.

II. Eligible Applicants

Eligible applicants are local government entities, independent authorities, and educational institutions located in the U.S. territories of Guam, American Samoa, U.S. Virgin Islands, and the Commonwealth of the Northern Mariana Islands.

III. Award Information

The period of performance for the majority of projects funded under this program is 12 to 24 months. Project proposals must be designed accordingly. Past and present recipients of awards under this program are eligible but must submit new proposals to compete for funding each year unless multi-year funding has been awarded.

IV. Review Criteria

Initial Review Criteria: Prior to a comprehensive merit evaluation, OIA will perform an initial review to determine that (1) the applicant is eligible for an award; (2) the information required by the announcement has been submitted; (3) all mandatory requirements are satisfied; and (4) the proposed project is responsive to the objectives of the funding opportunity announcement. If an application fails to meet these requirements, it may be deemed non-responsive and eliminated from full Merit Review.

Merit Review Criteria: The following factors will be used in the comprehensive valuation of applications. The sub-criteria under each criterion are of equal weight.

Criterion 1: Goals and Objectives Weight: 20% Applies to all applications.

• Clarity and completeness of the discussion of the project goals and objectives.

• Extent to which the proposed project is identified and supported in the territory’s

Strategic Energy Plan and/or Energy Action Plan.

• Extent to which the proposed project provides economic, environmental, cultural, or social benefits to the territory.

• Potential for future replicability or expansion beyond the currently proposed project.

• Soundness of the discussion that justifies the need for OIA funding.

• Clarity and completeness of the discussion of how the project will be financially sustained after OIA funding.

Criterion 2: Project Description and Implementation Plan Weight: 35% Only the criteria under one of the three topic areas will be applied, subject to the focus of the application: 1) feasibility study; 2) development (pre-construction) of energy projects; and 3) deployment (construction) of energy projects.

Topic Area 1: Grid Studies or Power Generation, Thermal and Energy Storage Systems Applies only to related proposed projects.

• Clarity and completeness of the discussion of the proposed project.

• Estimated size of the proposed system including DC power and AC energy delivery of the system as appropriate. For wind and solar projects, the estimated energy delivery shall be based on average weather data for the proposed project site.

• Estimated total cost for proposed system. Show a breakout of the cost assumptions made for the major components.

• Size of the energy load to be served.

• Estimated energy cost savings (show calculations).

• Location of proposed system and its square footage.

• Insurance covering system damage and third-party liability.

• Be constructed to withstand extreme but reasonably likely weather events such as typhoons/hurricanes.

• Address whether the project improves the territory's disaster resilience.

• Demonstrate that the chosen technology is commercially proven (tested and demonstrated, carries a warranty, has service and parts readily available), is ready for immediate deployment, and has financing available from private sector organizations.

• Coordinate with utility to ensure that the proposed project satisfies all utility criteria for interconnection to the utility electric distribution system. This includes coordinating all negotiations, meeting with utility, design reviews, and participating in any needed interaction between utility and the proposed project.

• Annual system operations and maintenance (O&M) cost. (Note: annual O&M costs over the life of the project are not allowable costs under the grant award and must be covered by the grantee).

• Quantification of non-energy benefits, such as reduction in water consumption, avoided infrastructure improvements, jobs created, etc.

• A description of the territory's procurement rules and regulations applicable to the proposed project.

Topic Area 2: Energy Efficiency and Conservation Applies only to related proposed projects:

• Project location(s) and total price of project(s) with a breakout of costs and assumptions made for major system components.

• Projected annual and lifetime energy savings (for both electrical and thermal energy as appropriate) as demonstrated by proposed energy consumption of the project as compared to an energy baseline taken from energy bill data. Anticipated annual energy savings must be at least 15% for the project to be considered. Supporting calculations should be provided.

• Description of project scope including, for buildings: the number of buildings, square footage, and systems (HVAC, lighting, mechanical, building envelope, plug loads, water heating, etc.).

• Energy conservation measures with a favorable payback period identified through an energy audit. Identify the level of audit already performed or to be performed: ASHRAE Level 1: walkthrough assessment, Level 2: energy survey and analysis, or Level 3:

detailed analysis/modeling.

• Replacement of high energy consuming equipment/devices/processes/controls that are inefficient in their use (e.g. under or oversized, in the wrong application), are outdated/obsolete, or in poor operating condition with highly efficient (e.g. Energy Star certified) equipment/devices/processes/controls that are commercially available, able to be installed within 24 months, with proven success in similar applications, warrantied, with readily available service and parts, and available training/support to ensure successful operation & maintenance.

• Quantification of impacts on the electricity grid, such as the extent of peak load reduction or system congestion relief.

• An adequate level of energy metering/sub-metering to measure and verify ongoing project performance and energy savings.

• A proposed commissioning, operation and maintenance plan, which describes the commissioning process, sequence of operations, equipment run times and schedules, energy metering, proposed set points, and other requirements to ensure energy efficient operations.

Criterion 3: Environmental Considerations Weight: 10%

• Clarity and completeness of the discussion of the environmental benefits and impacts of the proposed project.

• Clarity of the discussion of environmental analyses conducted and quality of the environmental analyses provided.

• Thoroughness of the discussion of Federal, State, or local permitting, National Environmental Policy Act (NEPA), National Historic Preservation Act (NHPA), or other approvals as required for the proposed project.

• Likelihood of obtaining the required permits, approvals, and NEPA decisions in a timely manner.

• For applications proposing under Topic Area 3 (Deployment of Renewable Energy Power Projects), the soundness of the plan to dispose of any sanitary or hazardous waste (e.g., construction and demolition debris, old light bulbs, lead ballasts, piping, roofing material, discarded equipment, debris, and asbestos) generated as a result of the proposed project.

Criterion 4: Roles, Responsibilities, Resources, and Capabilities Weight: 10%

• Soundness of the project management concept with respect to proposed tasks and organizational structure to achieve project objectives.

• Capabilities of the applicant and participants to comprehensively address all aspects of the proposed project or reasonableness of the plan to obtain qualified suppliers, subcontractors, or consultants.

• Level of commitment of the applicant and each participating organization as evidenced by level of involvement, contributions, and cost sharing (if any) identified in declarations and letters of commitment.

• Quality of the description of land and for deployment projects only evidence of a commitment of the use of that land.

• Reasonableness of the business agreements between each of the parties to implement the project, if any.

• Soundness of the project co-financing and evidence of the capability of the applicant and participating organizations to meet cost sharing requirements (if any) of the proposed project.

Criterion 5: Project Activities and Schedule Weight: 15%

• Clarity of the project objectives.

• Adequacy of the approach to implement the project.

• Clarity and completeness of the description of each activity necessary to complete the project and reasonableness of the milestones.

• Likelihood of achieving project objectives through realistic milestones and logical task structure.

Criterion 6: Project Support Weight: 10%

• Level of support from stakeholders, the public, Congress, and local government, as evidenced by letters of support, historical support by Congress/the Administration, or signature on grant documents by the Governor of the insular area.

V. Application Information

EIC applications should be submitted via email to Krystina Alfano at krystina_alfano@ios.doi.gov.

Submission Deadline: The submission deadline is July 31, 2019.

Decision Timeframe: Decisions on funding of project proposals will be made by the end of the fiscal year (September 30, 2019).

Application Preparation: Applications should be prepared and submitted by the entity who would receive the grant award. Applications submitted and prepared by a third party, such as an existing contractor or a potential contractor who may benefit from the grant, are not considered allowable. Please note that grant recipients must follow the applicable procurement procedures contained in 2 CFR 200 when procuring services and goods under OIA grants. In addition, please note that OIA is responsible for ensuring that all Federally-funded projects are in compliance with the National Environmental Policy Act and other applicable environmental laws and regulations. Therefore, please factor the cost of compliance into the formulation of your request.

Application Format: OIA does not require a standard format; however, your proposal should include all of the following elements in order to receive full consideration:

A. Signed and Dated Cover Letter: The cover letter should briefly summarize the application and be signed by an Authorized Representative of the applicant organization.

Cover letters should be addressed to the Assistant Secretary for Insular and International Affairs:

The Honorable Douglas W. Domenech Assistant Secretary, Insular and International Affairs U.S. Department of the Interior 1849 C Street NW Mail Stop 3117 Washington, DC 20240

B. Project Narrative: The project narrative must include the following elements:

1. Detailed Project Description(s): Provide a clear description of what is to be constructed or acquired. Provide as much detail as possible.

2. Detailed Project Budget(s): Provide detailed budget information for the proposed project(s) and activities. A budget breakout chart, by category, is suggested. Please make sure to explain categories that are not self-explanatory, such as “OTHER”, in full. Also provide a description of external contracts that will be required to complete the project. State the basis for the budget cost estimates, whether it is based on research by government technical staff, a recently completed similar project, information provided by quotes or an outside source, etc. Please note that all activities and costs to be charged to the grant must be in full compliance with the applicable cost principle found in OMB Uniform Guidance for Federal Awards (2 CFR 200).

3. Detailed Project Timeline(s): Provide a detailed project timeline for completion of each proposed project.

4. Statement of Need: Describe why this project is necessary and include supporting information. Summarize previous or ongoing efforts (of your organization as well as outside organizations) relevant to the proposed work.

5. Project Goals and Objectives: State the long-term goals of what you want to achieve. Objectives are the specific steps you will take to reach your stated goals.

State your objectives, which must be specific, measurable, and realistic (attainable within the project’s period of performance).

6. Environmental Permitting: Describe what will be required to comply with the National Environmental Policy Act and how long it will take to acquire the necessary permits.

7. Priority Listing for Multiple Projects: If multiple projects are being proposed, please provide a listing of the proposed projects in order of priority. An example is provided below:

SUMMARY PRIORITY PROJECTS

Priority Project (list in priority order) Requested Amount

1. Priority 1 - Project [Name] $

2. Priority 2 - Project [Name] $

3. Priority 3 - Project [Name] $

Total Request for Fiscal Year 2018 $

8. Grant Recipient: Please provide the name, title, and address of person to who the grant award, if made, should be addressed. This is normally, the head of the local government or organization.

9. Recipient Grant Manager: Please provide the name, title, and contact information for the person who will be the day-to-day grant manager if the proposal is funded. Contact information should include the mailing address, phone number, fax number and email address (as applicable).

10. First Time Applicants: Please ensure that the following questions are answered on your application if you are a first time applicant for OIA grant funding:

a) Does your organization have independent financial capabilities that can comply with the financial management and accounting requirements detailed in 2 CFR 200 (see below)?

b) Does your organization have a financial unit? If so, please describe the staffing and structure (such as the number of CPAs, utilization of accounting software etc.)

c) Has your organization received and managed federal grant funding before?

d) Does your organization undergo an annual financial audit?

e) Has your organization ever completed a single audit?

f) Is your organization a 501(c)(3) nonprofit? If so, please submit supporting documentation of your 501(c)(3) status.

All applicants, but especially first time applicants, are strongly encouraged to review Code of Federal Regulations Title 2, Part 200 (2 CFR 200) in order to familiarize themselves with the Department of the Interior’s administrative requirements, particularly the financial management requirements, associated with managing federal grant funding. 2 CFR 200 can be viewed using the following link:

http:/www.ecfr.gov/cgi-bin/text-idx?tpl=/ecfrbrowse/Title02/2cfr200_main_02.tpl

11. Automated Standard Application for Payments (ASAP) Identification Number: Organizations already enrolled in ASAP under Agency Location Code 14010001 should list their ASAP identification number on their application.

Please see Section VI. Fund Disbursement below for additional information.

C. Required SF-424 Application for Federal Assistance Forms

Applicants must complete and submit the appropriate SF-424 forms when applying for OIA grants. In addition to the core SF-424 Application for Federal Assistance form, applicants must complete two additional forms; either the SF-424A Budget Information – Non Construction Programs or the SF-424C Budget Information – Construction Program, as appropriate to the proposed project(s), as well as the SF-424B Assurances – Non-Construction Programs or the SF-424D Assurances – Construction Programs, as appropriate to the proposed project(s).

In total, three SF-424 forms must be submitted as part of the application. The forms can be found on the Grants.Gov website at the following link:

https://www.grants.gov/web/grants/forms/sf-424-family.html

D. Application Restrictions

Applications should not include requests to fund force accounts:

Force Accounts: A force account refers to a grantee’s own (existing) personnel being charged to the grant. In general, OIA is opposed to funding force accounts with its grants, however, outside expertise and consultant services will be considered if detailed in the project narrative and budget.

E. Application Package Checklist

A complete application package must include:

• Core SF-424 Application for Federal Assistance form

• SF-424A Budget Information – Non Construction Programs (or SF-424C)

• SF-424B Assurances – Non-Construction Programs (or SF-424D)

• Signed and Dated Cover Letter

• Complete Project Narrative (detailed project description, detailed budget, detailed timeline, statement of need, project goals and objectives, priority listing (if applicable), grant recipient, grant manager, first time applicant responses & ASAP Identification.

• Letters of Support, if applicable http://www.ecfr.gov/cgi-bin/text-idx?tpl=/ecfrbrowse/Title02/2cfr200_main_02.tpl https://www.grants.gov/web/grants/forms/sf-424-family.html

VI. Grant Reporting

The standard grant reporting requirements are listed below:

• A SF-425 Federal Financial Report and a narrative project status report will be due semi-annually for the periods beginning January 1 and ending June 30, and beginning July 1 and ending December 31.

• Reports are due within 30 days of the end of the period. Final reports are due 90 days after the expiration or termination of the award.

These standard reporting requirements will apply to all awards unless otherwise indicated in the Terms and Conditions section of the award. Additional requirements are assigned on a case-by-case basis and may also be found in the Terms and Conditions section of the award.

VII. Fund Disbursement

Grant recipients located in the U.S. Territories or in the United States will be required to enroll with, and utilize, the U.S. Treasury's Automated Standard Application for Payments (ASAP) system to request payments under a grant. All payments are made via Electronic Funds Transfer (EFT) or Automatic Clearing House (ACH).

Please note that a grantee must be enrolled in ASAP under Agency Location Code 14010001 to have access to OIA grant funds. A grantee may already be enrolled in ASAP for another grant program, such as through the U.S. Fish and Wildlife Service, but if the grantee is not specifically enrolled under ALC 14010001 it will not have access to the OIA grant.

Organizations already enrolled in ASAP under ALC 14010001 should list their ASAP ID on their applications as noted above in Section IV(B)(9).

The ASAP enrollment forms can be found on the OIA website:

https://www.doi.gov/oia/fiscal-payments

VIII. Modification or Changes to the Announcement

Notices of any modifications to this announcement will be posted on Grants.gov. When you download the application materials at Grants.gov, you can also register to receive notifications by email of any changes or modifications to this announcement.

https://www.doi.gov/oia/fiscal-payments

IX. Agency Contacts

Jonathan Dunn Acting Director, Budget and Grants Management Division Office of Insular Affairs U.S. Department of the Interior 1849 C Street NW Mail Stop 3117 Washington, DC 20240

(202) 219-0614 jonathan_dunn@ios.doi.gov

Krystina Alfano EIC Grant Manager Office of Insular Affairs U.S. Department of the Interior 1849 C Street NW Mail Stop 3117 Washington, DC 20240

(202) 219-8536 krystina_alfano@ios.doi.gov

To learn more about OIA, please visit our website: www.doi.gov/oia mailto:krystina_alfano@ios.doi.gov http://www.doi.gov/oia