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Funding Opportunity
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Decarbonizing Heating, Ventilation, and Air Conditioning Systems in Large Buildings
Organization Name
California Energy Commission
Funding Opportunity Brief *
This solicitation's purpose is to fund applied research and development projects that develop decarbonization solutions for heating, ventilation, and air conditioning systems in large commercial buildings with an emphasis on technology...
Program Name
Electric Program Investment Charge (EPIC)
Agency or Grant #
GFO-22-308
Equity Categories
Disadvantaged Community
Opportunity Zone
Low Income Community
Native American Tribes
Eligible Applicant
Government
Tribal Government
Institution
Organization
Nonprofit/NGO/CBO
Business
Individual
Other
Description

The purpose of this solicitation is to fund applied research and development projects that develop decarbonization solutions for heating, ventilation, and air conditioning (HVAC) systems in large commercial buildings with an emphasis on technology advancements, energy efficiency, replicability, and use of ultra-low global warming potential (GWP) refrigerants.

Space heating needs in large buildings have historically been met using fossil fuels and combustion-based equipment to generate hydronic hot water. This equipment is generally inexpensive (boilers cost ~$12–$30 per thousand Btu per hour (MBH)), has high turndown or ability to operate efficiently when heating needs are low, and uses an available, reliable resource for fuel. However, combustion of fossil fuels emits criteria air pollutants and greenhouse gas emissions. Fossil gas combustion in commercial buildings is primarily used for space heating, water heating, and cooking, producing nearly 12 million metric tons of carbon dioxide equivalent in 2018.

As California transitions to electrifying space heating sys­tems, heat pumps and heat recovery chillers offer a viable option for traditional airside HVAC applications. However, heat pumps for large commercial buildings have challenges, such as higher first costs compared to fossil gas systems, lower operating efficiency at higher supply temperatures, and limitations operating at low ambient temperatures.
To address these challenges will require involvement by the HVAC industry and key stakeholders to increase opportunities for widespread and immediate market acceptance. Economically integrating energy efficiency solutions with advancements in manufacturing processes can reduce production costs of high efficiency heat pumps and other low carbon HVAC equipment. Technologies and projects funded by this solicitation could increase cost-effectiveness, energy efficiency, and use of ultra-low GWP refrigerants. The purpose of this solicitation is to develop and demonstrate affordable, promising, pre-commercial technologies to accelerate decarbonization of large building HVAC systems that use low or ultra-low GWP HVAC refrigerants. Projects must fall within one of the following project groups:   

  • Group 1: Large Hybrid or Stand-Alone Low GWP Electric Heat Pump Systems

 Develop and test large hybridized or stand-alone heating and cooling systems (over 100 tons) that use a heat recovery chiller or heat pump (GWP of 10 or less) to operate during lower load conditions, with boilers and chillers being used during high load situations. May also develop a hybrid heating system using a heat pump or heat recovery chiller with thermal storage.

  • Group 2: Ultra-Low-GWP HVAC Heat Pump Advancements

Develop and demonstrate advanced, cost-competitive, high-efficiency large air-source and water-source heat pumps that use ultra-low GWP (less than or equal to 4) refrigerants.

  • Group 3: Other Advanced HVAC Technologies 

Develop and demonstrate other types of low or zero carbon, non-vapor compression HVAC technologies for large commercial buildings with GWP of 0.

There is up to $20,000,000 total funding under this solicitation.  The amounts per group available for this grant are listed below.  The total, minimum, and maximum funding amounts for each project group are listed below.

Disadvantaged or Low-income Communities
For Group 1, additional points will be provided for demonstrations located in and benefitting low income or disadvantaged communities. 

Project Group

Available funding

Minimum award amount

Maximum award amount

Minimum match funding (percentage of EPIC Funds Requested)

Group 1:Large Hybrid or Stand-Alone Electric Hybrid System

$12 Million

$2 Million

$6 Million

20%

Group 2: Low-GWP HVAC Heat Pump Advancements 

$4 Million

$1 Million

$2 Million

20%

Group 3: Other Advanced HVAC Technologies

$4 Million

$1 Million

$2 Million

20%


Match Funding Requirement

Match funding in the amount of 20 percent of the EPIC funds is required.

Available Funding
$20,000,000.00
Maximum Award Amount
$6,000,000.00
Tags
Distributed Energy Resources
Climate Adaptation/Mitigation
Energy Storage
Energy Efficiency & Demand Response

Operations & Maintenance
Air Quality
Resilience
Environmental Justice
Equity
Utilities
Buildings
Research