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The California Energy Commission’s (CEC) Clean Transportation Program announces the availability of up to $9.0 million to support ultra-low-carbon fuel in two funding categories: demonstration-scale and commercial-scale production facilities utilizing forest biomass.

What is the program’s purpose? The purpose of this solicitation is to support ultra-low-carbon fuels that reduce greenhouse gas (GHG) emissions, decrease air pollution, prevent wildfire, and help achieve the state’s climate change and clean air goals.

Who is eligible to apply?  This solicitation is open to all public and private entities. To be eligible, applicants must have a business presence in California.

What are the project categories? Applications must fall into one of two project categories to be eligible under this solicitation:

• Category 1: Demonstration-Scale Fuel Production: The primary fuel production technology within the application must have been demonstrated at a technology readiness level (TRL) of 7.
• Category 2: Commercial-Scale Fuel Production
  • Either a new facility or an expansion of an existing facility.
  • The primary fuel production technology within the application must have been demonstrated at a TRL of 8 to 9.

What is the matching requirement and anticipated funding amounts? Applications must include a minimum 50 percent total match share of the total allowable project cost

The minimum award per project is $1 million for both the demonstration-scale and commercial-scale categories.  The maximum awards based on the two Project Categories are as follows:

What are the project requirements? To be eligible for funding, projects in both funding categories must meet all of the following requirements:

• The proposed project must be located in California. Project construction and operations must also occur in California.
• The proposed project must reduce GHG emissions from on-road motor vehicles through the produced fuel’s use as a transportation fuel.
• The proposed project must use at least 60 percent or more of forest biomass as the primary feedstock. The remaining feedstock must be an eligible, renewable feedstock, as discussed in Section II.C of the Grant Funding Opportunity (GFO) solicitation.
• To be eligible for funding in the Demonstration-Scale project category, the project must utilize at least 2.0 dry tons of feedstock per day with at least 60 percent or more from forest biomass.
• The Commercial-Scale project category has two unique project subcategories: New Facility and Expansion of an Existing Facility. The eligibility of a project under each subcategory is fully described in the GFO starting on Page 8.
• Eligible ultra-low-carbon fuels for fuel production include biomethane, diesel substitutes, renewable hydrogen, and electricity for transportation use. For purposes of this solicitation, eligible ultra-low-carbon fuels from forest biomass include the following: biomethane; diesel substitutes; renewable hydrogen; or electricity for transportation use.
• The proposed project must produce a fuel with a calculated carbon intensity of 30 grams carbon dioxide equivalent per megajoule (gCO2e/MJ or less.
• Repurposing of an existing CEC-funded project is not an eligible project type for funding under this solicitation. However, projects may co-locate at an existing CEC-funded project site if it will not reduce the existing project’s performance.

 When is the application deadline? The deadline to submit application is April 27, 2023 by 11:59pm.

The full Grant Funding Opportunity Solicitation can be found here.

Morrison has extensive experience writing successful applications for clients for CEC programs. For more information on this grant or how to apply with Morrison’s assistance, please contact the Morrison Grants Team by email at grants@morrisonco.net or call us at 530-893-4764.