The purpose of this solicitation is to demonstrate and deploy advanced energy efficiency and load reduction technologies in industrial and commercial cold storage facilities. The goals are to reduce greenhouse gas emissions, enable load shifting capabilities to benefit the grid, and gather real-world energy data to help existing and planned cold storage and refrigeration facilities reduce energy use and costs.
Refrigeration accounts for an estimated one-third of the total electricity usage for the food processing industry. The United States Department of Food and Agriculture (USDA) estimated that as of 2021, California had 396 million cubic feet of cold storage space consisting of warehouses that are artificially cooled for 30 or more days, including fruit houses; dairy manufacturing plants; frozen fruit, fruit juice, and vegetable processors; and poultry and meat packing plants. Using an average of 24-foot ceiling height and an energy density of 50 kilowatt-hours per square foot per year, the annual energy usage of this sector is estimated to be 825 GWh.

Eligible technologies for this solicitation include:

1.    Advanced dehumidification technologies that reduce refrigeration loads

2.    Defrosting and frost build-up prevention technologies (e.g., coatings)

3.    Integrated thermal energy storage technologies, such as dedicated ice storage, brine cold storage that enables operational flexibility, and electric load shifting

4.    Retrofits that enable waste heat recovery and reuse (for instance, conversion of concrete slab heating from electricity to heating with heat transfer fluid, enabling reuse of compressor waste heat)

5.    Advanced controls enabling operations scheduling and pre-cooling during off-peak times, optimizing defrosting cycles in response to grid conditions, operating electric motors and pumps, etc.

The solicitation seeks projects at technology readiness levels (TRLs) from 7 to 8 at the beginning of the project that will do one or more of the following: 

•    Reduce net energy use and/or costs

•    Enable permanent load shifting capabilities that benefit the grid 

•    Reduce on-site and/or grid GHG emissions 

The objective is to advance technologies to TRL 9 and yield market-ready technologies and approaches by the end of the projects. This solicitation focuses on projects that will result in permanent load reduction and does not seek projects that target emergency load reduction. The following research targets and metrics are applicable to all projects, compared to the baseline operations at the demonstration site facility:

•    GHG emissions reduction (at least 20 percent) annually

•    Simple payback (less than 5 years, or 10 years for slab retrofits)

In addition to the metrics listed above, load flexibility projects must be able to permanently (non-emergency) load shift from peak hours to off-peak hours, as defined by the respective IOU’s electricity tariff at the time of the project demonstration (at least 20 percent of electric power (kW) shifted). Energy efficiency projects must reduce annual electricity usage (kWh) by at least 20 percent.

All applicable research targets and metrics must be supported by independent third-party measurement and verification for at least 12 months after project deployment and at least 12 months of pre-deployment baseline measurements.

Demonstrations must be at an existing facility located in an electric IOU service territory.

All demonstration projects must provide a Measurement and Verification plan. If a project includes the deployment of multiple technologies, the applicant must provide a Measurement and Verification plan that specifies research targets and respective metrics that describe the performance of each individual technology as well as the integrated technologies under expected operational strategies. The purpose of reporting individual performance is to improve empirical understanding of the savings potential of each technology. See also section II.B.4 of this solicitation manual.

1.    Group 1: Industrial Refrigerated Warehouses 

Industrial Refrigerated Warehouses must meet the definition indicated in Section I.B. The Project Narrative (Attachment) must discuss the following in the sections identified:

•    Demonstrations must be at an existing industrial cold storage facility located in an electric IOU service territory. Applicants must provide at least one site and a backup site and include demonstration site descriptions in the Technical Approach section.

•    Applicants must include one or more of the eligible technologies and provide justification within the Technical Merit section on why the proposed technology is applicable for this funding opportunity.  

•    Applicants must provide justification for how the proposed technology(ies) will meet or exceed the required and other proposed research targets, that they are technically and economically feasible, and that they have potential for commercial deployment by similar facilities beyond the term of the grant in the Technical Merit section. 

•    For projects that target permanent load shifting:

o    In the Technical Merit section, applicants must explain how the load flexibility projects will load shift and the corresponding hourly GHG savings for each shift. 

o    Applicants must evaluate cost savings and GHG emission and load reductions based on an annual 8760 hour model such as Energy Plus using the actual rates and GHG factors of the respective electric IOU.  For example, if a project shifts a 500 kW load from 5 pm to 3 pm, the energy model must be able to calculate the marginal GHG difference and provide a cumulative savings.  The model must be able to evaluate the kWh and kW energy and cost impacts, for each hour of the year, and report them as hourly impacts as well as summarize these impacts and customer costs, reflecting the current electric tariffs of the applicable electric IOU. If multiple tariff options are available to customers, the model should compare costs across those different options. 

Applicants must provide a description and summary of the model results, including assumptions and references for the hourly load reductions and cost impact during the net peak period, in the Technical Approach section.

•    In the Technical Merit section, describe the adaptability of the technology to respond to changes in electricity rate structures and grid needs (e.g., as storage capacity increases; new renewable capacity comes online; new renewable sources, such as offshore wind, come online).

•    In the Disadvantaged & Low-Income Communities section, indicate if the project location(s) are in disadvantaged, low-income, or tribal communities. If the project benefits these communities, indicate specific benefits it will provide to the communities. Include information on past and planned community engagement activities.

Group 2: Commercial Cold Storage Facilities

The purpose of this group is to reduce GHG emissions in cold storage facilities found in commercial buildings such as grocers, institutional facilities (schools, hospitals, government), and retail. Projects funded by this group will ideally provide energy efficiency, demand flexibility, cost savings, and other benefits.  The Project Narrative (Attachment) must discuss the following in the sections identified: 

•    Demonstrations must be at an existing cold storage facility located in an electric IOU service territory. Applicants must provide at least two sites and a backup site and include demonstration site descriptions in the Technical Approach section.

•    Applicants must include one or more of the eligible technologies and provide justification within the Technical Merit section on why the proposed technology is applicable for this funding opportunity.  

•    In the Technical Merit section, applicants must provide justification for how the proposed technology(ies) will meet or exceed the required or other proposed research targets, are technically and economically feasible, and have potential for commercial deployment by similar facilities beyond the term of the grant. 

•    Projects that target permanent load shifting must provide evaluation of cost savings and GHG emissions and load reduction based on an 8760 hour model such as Energy Plus using the actual rates and GHG factors of the respective electric IOU. The model must be able to evaluate the kWh and kW energy and cost impacts, for each hour of the year, and be reported as hourly impacts as well as summary impacts and customer costs reflecting current electric tariffs for the respective IOU.  If multiple tariff options are available to customers, costs should be compared across those different options. Provide description, including assumptions and references, in the Technical Approach section.

•    In the Technical Merit section, describe the adaptability of the technology to respond to changes in electricity rate structures and grid needs (e.g., as storage capacity increases; new renewable capacity comes online; new renewable sources, such as offshore wind, come online).

•    In the Disadvantaged & Low-Income Communities section, indicate if the project locations are in disadvantaged, low-income, or tribal communities. If the project benefits these communities, indicate specific benefits it will provide to the communities. Include information on past and planned community engagement activities.

FUNDING
Amount Available and Minimum/ Maximum Funding Amounts

There is up to $10 million available for grants awarded under this solicitation.  The total, minimum, and maximum funding amounts for each project group are listed below.

Group 1: Industrial Refrigerated Warehouses     $7,000,000    $1,000,000    $3,500,000        20%

Group 2: Commercial Cold Storage Facilities      $3,000,000    $500,000        $3,000,000        20%

Match Funding Requirement

Match funding is required in the amount of at least 20% of the requested project funds.