The purpose of this rulemaking is to update the application process, review, and administration of the Renewable Energy and Energy-Efficient Technologies Grant Matching Program.

Office of Energy

RULE NOS.:RULE TITLES:

5O-1.002Definitions

5O-1.003Renewable Energy Technologies Grants Program

PURPOSE AND EFFECT: The purpose of this rulemaking is to update the application process, review, and administration of the Renewable Energy and Energy-Efficient Technologies Grant Matching Program.

SUMMARY: The proposed rule describes the application process, review, and administration of the Renewable Energy and Energy-Efficient Technologies Grant Matching Program.

SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION:

The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the Agency.

The Renewable Energy and Energy-Efficient Technologies Grant Matching Program is a voluntary program.

Eligible applicants may elect to participate to take advantage of the matching grants associated with this program.

The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: The Department’s economic analysis of the adverse impact or potential regulatory costs of the proposed rules did not exceed any of the criteria established in Section 120.541(2)(a), Florida Statutes.

Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.

RULEMAKING AUTHORITY: 377.804, 570.07(23) FS.

LAW IMPLEMENTED: 377.804 FS.

IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE SCHEDULED AND ANNOUNCED IN THE FAR.

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: John Leeds, 600 South Calhoun Street, Suite 251, Tallahassee, Florida 32399-0001, or telephone [phone]

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

5O-1.002 Definitions.

The words, terms, and phrases used in this chapter, unless otherwise indicated, shall have the meaning set forth in Section Sections 377.803 and 220.192(1), F.S., In addition, when used in this chapter, the following words, phrases, or terms, shall have the following meanings:

(1) “Prime Funder” is defined as the primary funding entity for which the Renewable Energy and Energy-Efficient Technologies Grant Matching Program funds will be used as match. “Bioenergy” means energy derived from biomass.

(2) “Total Project Costs” means Applicant Match plus Department Match. This does not include funds from a “Prime Funding” Source. “Biomass” means “biomass” as defined in Section 366.91(2)(a), F.S.

(3) “Department” means the Florida Department of Agriculture and Consumer Services.

(4) “Matching Funds or Other In-Kind Contributions” means:

(a) Actual cash outlays contributed, including, but not limited to, cash outlays for wages, rental expenses, travel expenses, unrecovered indirect costs, and purchases of material and supplies, as a direct benefit to the project, or;

(b) Non-cash contributions necessary and reasonable for proper and efficient accomplishment of project objectives, the value of which must be established using the following guidelines:

1. Rates for donated or volunteer services of any person must be consistent with their regular rate of pay, or the rate of pay of those paid for similar work at a similar level of experience in the labor market, including the value of fringe benefits.

2. The value of donated expendable property such as office supplies or workshop supplies must not exceed the fair market value of the property.

3. The value of donated real property such as land must not exceed the fair market value of the property.

4. Donated space must be valued at fair rental value of comparable space and facilities in a privately-owned building in the same locale.

5. The value of loaned equipment cannot can not exceed its fair rental value.

6. In-kind travel expense must be valued at the approved State of Florida rate as specified in Section 112.061, F.S.

(5) “Notice of Award by Prime Funder” is defined as the documentation that includes funding amount to be awarded, award date (including matching obligation date if different from award date), and authorized signatory from the “Prime Funder,” notifying the applicant that funds are being awarded by the “Prime Funder”.  “Purchase date” means, for the purchase of solar energy equipment, the date of execution of a loan agreement or the date of final cash payment.

(6) “Letter of Reservation” is the letter from the Department reserving the grant match funds until the applicant provides the Department with the “Notice of Award by Prime Funder” or the program funds are depleted. “Solar thermal pool heater” means a device that traps the heat produced by incident sunlight in collector tubing through which swimming pool water is pumped in order to raise the temperature of the swimming pool water.

(7) “Cost Reimbursement” means payment to grantee of reasonable costs incurred in connection with the performance of work, not to exceed the amount set forth in the budget. See the Department of Financial Services, Reference Guide to State Expenditures for guidance.

(8) “Indirect Costs” means costs that are incurred for common or joint objectives and, therefore, cannot be identified readily and specifically with a particular sponsored project, an instructional activity, or any other institutional activity.

Rulemaking Authority 377.804(3), 377.806(7), 220.192(3) FS. Law Implemented 377.802, 377.804, 377.806, 220.192 FS. History–New 10-22-07, Formerly 62-16.200, 27N-1.200, Amended___________.

 

5O-1.003 Renewable Energy and Energy-Efficient Technologies Grants Program.

(1) REQUEST FOR THE GRANT PROPOSALS FOR THE RENEWABLE ENERGY AND ENERGY-EFFICIENT TECHNOLOGIES GRANT MATCHING PROGRAM.

(a) The Department shall issue a request for grant proposals (“RFGP”). The RFGP shall include a copy of the grant application form, instructions for submission of the grant application, and contact information for the Department.

(b) The RFGP shall be issued by publication on the Florida Department of Management Services State Vendor Bid System under MyFlorida MarketPlace, and on the Department’s website and noticed in the Florida Administrative Register.

(c) The Renewable Energy and Energy-Efficient Technologies Grant Matching Program is funded through deobligated grant funds from the 2008 Renewable Energy and Energy Efficient Technologies Grants Program. The Renewable Energy and Energy-Efficient Technologies Grant Matching Program shall utilize the deobligated funds in accordance with Section 377.804, F.S., to provide grant matching funds to eligible entities to conduct demonstration, commercialization, research, and development projects relating to renewable energy technologies and innovative technologies that significantly increase energy efficiency for vehicles and commercial buildings.

(d) Indirect Costs are not eligible for grant reimbursement.

(2) QUALIFIED APPLICANTS. Qualified applicants are those applicants identified in Section 377.804(2), F.S., and State of Florida Agencies, as defined in Section 287.012, F.S.

(3) APPLICATIONS. Applications for the Grant Assistance Pursuant to Renewable Energy and Energy-Efficient Technologies Grant Matching Program shall be submitted to the Department of Agriculture and Consumer Services, Office of Energy, 600 South Calhoun Street, Suite 251, Tallahassee, Florida 32399-0001 as follows:

(a) Applicants shall complete the form entitled Renewable Energy and Energy-Efficient Technologies Grant Matching Program Application, FDACS-01990, (Rev. 3/14), which is hereby adopted and incorporated by reference and may be obtained online at: http://www.flrules.org/Gateway/reference.asp?No=Ref-XXXXX or by emailing the Office of Energy at [e-mail], and shall submit five (5) paper copies and one (1) electronic copy of the completed application on a non-rewritable compact disc or USB flash drive that will not be returned to the applicant. Six copies of the application shall be submitted in hard copy format, using application Grant Assistance Pursuant to Renewable Energy and Energy-Efficient Technologies Grants Program, Form DACS-01602 (rev. 10/11) which is adopted and incorporated by reference at Rule 5O-1.006, F.A.C. One copy shall be submitted in electronic format on compact disc at the same time as the hard copy. Acceptable formats for electronic versions are Microsoft Word for Windows versions 5.0 or higher; and Rich Text Format. Acceptable formats for electronic versions of the signed commitment letters required by Grant Assistance Pursuant to Renewable Energy and Energy-Efficient Technologies Grants Program, Form DACS-01602 (rev. 10/11) from third parties are Adobe PDF; Microsoft Word for Windows versions 5.0 or higher; and Rich Text Format.

(b) The applicant shall include a copy of the applicant’s proposal and application, if applicable, for funding from the Prime Funder’s notice of funding availability and/or application. Applications must be received by the department no later than 5:00 p.m. on the date specified by the department in the RFGP.

(c) Applications must be received by the Department no later than fifteen (15) business days prior to the application due date for the corresponding Prime Funder. The application filing deadline shall be extended by the department when the department determines specifically for this grant program that extenuating circumstances exist, such as a hurricane or other natural disaster. Any deadline extension shall apply for all applicants. The department shall publish notice of the deadline extension on the Florida Department of Management Services State Vendor Bid System under MyFlorida MarketPlace, and on the department’s web site.

(d) For grant match requests, the minimum allowable amount for an applicant to be eligible for consideration for award shall be $50,000.00 $50 thousand, and the maximum allowable amount shall be $1 million $2.5 million.

(e) COMPLETENESS. Applicant must use the Renewable Energy and Energy-Efficient Technologies Grant Matching Program Application form FDACS-01990, (rev.3/14) provided by the Department. Within 10 days of receipt of an application, the Department will evaluate the application to verify that the applicant has met the qualifying statutory and rule criteria. If the Department determines that the applicant is eligible for funding reservation, the Department will provide a letter of reservation. If the Department determines that the application is incomplete, the Department will issue a written notification to the applicant that the application was determined to be incomplete and will include a description of the application’s deficiencies. If the Department determines that an application is incomplete, the applicant will be allowed to submit a corrected application. The corrected application will be treated as a new application and reviewed in the order that it is received. Supporting documentation will not be returned to applicants.

Any application which does not include all required information shall be determined incomplete and ineligible for the award of the grant sought. The Department shall notify the applicant of the determination of ineligibility.

(f) The Department shall determine a grant application not eligible for award if: An applicant is not eligible for award of a grant if at any time the department determines the recipients for the grant:

1. The Department has a pending civil or administrative action against the applicant. that alleges that the applicant has committed violations of Chapters 373, 376 or 403, F.S., or the Department rules implementing these statutes; or

2. The Department has a final judgment or final order finding that the applicant has committed violations of Chapter 373, 376, or 403, F.S., unless the applicant has satisfied all requirements for corrective actions and has paid all costs, civil penalties, damages, and other financial assessments required by the judgment or order; or

2.3. The applicant has entered into a consent order with the Department, unless the applicant has satisfied all requirements for corrective actions and has paid all costs, civil penalties, damages, and other financial assessments required by the consent order.

(g) The applicant shall include signature delegation authority as an attachment to the application.

(4) CRITERIA. The Department shall consider (a)the criteria listed in Section 377.804(4), F.S., and whether eligible projects are demonstration, commercialization, research, and development projects relating to renewable energy technologies and innovative technologies that significantly increase energy efficiency for vehicles and commercial buildings shall apply to grants evaluated pursuant to Sections 377.804(1) through 377.804(5), F.S.

(b) In addition to the criteria in Section 377.804(4), F.S., grant applications shall be evaluated for the degree to which a project incorporates multiple renewable energy technologies.

(5) APPLICANT MATCHING FUNDS.

(a) For the Renewable Energy and Energy-Efficient Technologies Grant Matching Program, the applicant match required to be eligible for consideration for a grant award is as follows: minimum matching for Florida municipalities and county governments, Florida universities and colleges is 50% or half of the total funds requested from the Department. All other eligible entities must provide a 100% or one for one matching obligation of requested funds. Prime Funding is not considered as part of the match obligation ratio matching funds, the minimum allowable amount for an application to be eligible for consideration for award shall be $1.00.

(b) All applicant matching funds and other in-kind contributions, including third party in-kind, shall be verifiable from the applicant’s and/or its partners’ records, and not be included as contributions for any other state assisted project or program.

(c) Expenses related to a proposed project incurred prior to the Department’s letter of reservation award announcement are not eligible applicant matching funds or in-kind contributions.

(d) State funds are not eligible as matching funds or in-kind contributions.

(6) SCORING RANKING.

(a) The Department shall use a point system to score grants. In scoring grants, points shall be awarded as follows:

 

Criteria	Max Points Possible
Cost Share Percentage1	1020
Economic Development2	2016
Technical Feasibility3	1016
Innovative Technology4	2016
Production Potential5	1516
Energy Efficiency6	2016
Fostering Awareness7	1516
Project Management8	1016
Duration & Timeline9	156
Location Served10	54
Public Integration11	104
Multiple Technologies12	4
Total Numerical Rating	150

 

1Cost Share Percentage: The availability of matching funds or other in-kind contributions applied to the total project from the applicant.

For Florida municipalities and county governments, and universities and colleges in the state:

-31 points = 0% up to and including 50% of Department funds requested.

1 points = Greater than 50% up to and including 55% of Department funds requested.

2 points = Greater than 52% up to and including 60% of Department funds requested.

3 points = Greater than 60% up to and including 65% of Department funds requested.

4 points = Greater than 65% up to and including 70% of Department funds requested.

5 points = Greater than 70% up to and including 75% of Department funds requested.

6 points = Greater than 75% up to and including 80% of Department funds requested.

7 points = Greater than 80% up to and including 85% of Department funds requested.

8 points = Greater than 85% up to and including 90% of Department funds requested.

9 points = Greater than 90% up to and including 95% of Department funds requested.

10 points = Greater than 95% of Department funds requested.

For all other eligible entities:

-31 points = 0% up to and including 100% of Department funds requested.

1 points = Greater than 100% up to and including 105% of Department funds requested.

2 points = Greater than 105% up to and including 110% of Department funds requested.

3 points = Greater than 110% up to and including 115% of Department funds requested.

4 points = Greater than 115% up to and including 120% of Department funds requested.

5 points = Greater than 120% up to and including 125% of Department funds requested.

6 points = Greater than 125% up to and including 130% of Department funds requested.

7 points = Greater than 130% up to and including 135% of Department funds requested.

8 points = Greater than 135% up to and including 140% of Department funds requested.

9 points = Greater than 140% up to and including 145% of Department funds requested.

10 points = Greater than 145% of Department funds requested.

0 points = $1.00 up to and including 1% of total project cost.

2 points = Greater than 1% up to and including 10% of total project cost.

4 points = Greater than 10% up to and including 20% of total project cost.

6 points = Greater than 20% up to and including 30% of total project cost.

8 points = Greater than 30% up to and including 40% of total project cost.

10 points = Greater than 40% up to and including 50% of total project cost.

12 points = Greater than 50% up to and including 60% of total project cost.

14 points = Greater than 60% up to and including 70% of total project cost.

16 points = Greater than 70% up to and including 80% of total project cost.

18 points = Greater than 80% up to and including 90% of total project cost.

20 points = Greater than 90% of total project cost.

2Economic Development: The degree to which the project stimulates in-state capital investment and economic development in metropolitan and rural areas, including the creation of jobs and the future development of a commercial market for renewable energy technologies.

Minimum (0 points): Negative contribution or this element of the evaluation criteria was not addressed.

Maximum (20 16 points): Significant potential for economic development in Florida.

3Technical Feasibility: The extent to which the proposed project has been demonstrated to be technically feasible based on pilot project demonstrations, laboratory testing, scientific modeling, or engineering or chemical theory that supports the proposal.

(0 points): No proof of feasibility or this element of the evaluation criteria was not addressed.

(10 16 points): Project demonstrated to be technically feasible and claims are fully supported.

4 Innovative Technology: The degree to which the project incorporates an innovative new technology or an innovative application of an existing technology.

Minimum (0 points): No degree of innovation or this element of the evaluation criteria was not addressed.

Maximum (20 16 points): Project incorporates technologies or processes that are not in common use in Florida, that represent a novel application of an existing technology or process, or that overcome obstacles to meeting Florida’s energy needs in new or innovative ways.

5 Production Potential: The degree to which a project generates thermal, mechanical, or electrical energy by means of a renewable energy resource that has substantial long-term production potential.

Minimum (0 points): No production potential or this element of the evaluation criteria was not addressed.

Maximum (15 16 points): Significant potential for energy production in Florida.

6 Energy Efficiency: The degree to which a project demonstrates efficient use of energy and material resources.

Minimum (0 points): No consideration for energy efficiency or pollution prevention or this element of the evaluation criteria was not addressed.

Maximum (20 16 points): Project incorporates energy efficient products and practices including process improvements that lead to source reduction, waste minimization, and on-site recycling.

7Fostering Awareness: The degree to which the project fosters overall understanding and appreciation of renewable energy technologies.

Minimum (0 points): No contribution or this element of the evaluation criteria was not addressed.

Maximum (15 16 points): Significant potential for fostering awareness of renewable energy technologies throughout Florida.

8Project Management: The ability to administer a complete project.

(0 points): Project team mismatched for tasks identified. No prior management experience on project team. Budget is unrealistic.

(10 16 points): Project team has extensive management experience and expertise in the proposed field of study. Budget suited to tasks involved.

9Duration & Timelines: Project duration and timeline for expenditures.

Minimum (0 points): Project objectives will not be met and grant funds will not be exhausted within the 3 year grant agreement timeframe.

Maximum (15 6 points): No difficulty accomplishing project objectives and expending funds within grant agreement timeframe.

10Location Served: The geographic area in which the project is to be conducted in relation to other similar and/or existing projects.

Minimum (0 points): Project duplicates existing efforts in the county or counties in which the project is proposed, minimizing its potential value to the community and state.

Maximum (5 4 points): Location of project benefits related efforts, but not duplicative, in the county or counties in which the project is proposed and surrounding areas, creating value for the community and state.

11Public Integration: The degree of public visibility and interaction.

Minimum (0 points): No visibility and interaction with the general public or this element of the evaluation criteria was not addressed.

Maximum (10 4 points): Significant potential for public visibility and interaction.

12Multiple Technologies: The degree to which a project incorporates multiple renewable energy technologies in the project.

0 points = One renewable energy technology is used.

2 points = Two renewable energy technologies are used.

4 points = Three or more renewable energy technologies are used.

(b) The Department shall establish a review group of no less than three (3) people, who shall each individually review grant applications, and score each application according to the point system provided in paragraph (6)(a).

(c) Score points from all reviewers shall be averaged as follows: 1. Each reviewer shall score rank each eligible application in accordance with paragraph (6)(a); each reviewer’s scores shall be totaled and the total score for all reviewers shall be divided by the number of reviewers. Applicants that receive a minimum averaged score of 120 shall be eligible to receive matching funds in accordance with subsection (7). Applications submitted to the Department shall be reviewed, scored, and averaged within 10 business days by assigning a ranking number to each eligible application based on the score of the individual application compared to all other applications reviewed by that reviewer. For example, the top scored application shall be assigned a ranking number of 1, the second highest scored application shall be assigned a ranking number of 2, the third highest scored application shall be assigned a ranking number of 3, and so on, until all eligible applications are ranked.

2. After all eligible applications are ranked by the individual reviewers, the ranking numbers from all reviewers for each individual application shall be averaged.

(7) RESERVATION/AWARD. The department shall award grants based upon highest averaged ranking and availability of funding, with 1 being the highest ranking. Grants shall be awarded to the top ranked application first, to the second highest ranked application second, and so on until the total amount of the fiscal appropriation in each state fiscal year is met.

(a) Eligible applicants with a minimum averaged score of 120 will be provided a letter of reservation with the funding amount reserved by the Department. If the eligible applicant is successful in receiving Prime Funding as evidenced by a Notice of Award from the Prime Funder, the Department will enter into an agreement to provide funds towards the proposed project utilizing Grant Agreement, FDACS-01602, (Rev. 08/11), which is hereby adopted and incorporated by reference and a sample may be viewed online at: http://www.flrules.org/Gateway/reference.asp?No=Ref-XXXXX. The maximum amount for an individual award shall be limited to $2.5 million.

(b) This is a first-come first-serve program. A letter of reservation from the Department is not a guarantee of funding. The following list includes, but is not limited to, the reasons an eligible applicant would not ultimately receive match grant funding:

1. The program funds are depleted prior to the applicant receiving and submitting to the Department the Notice of Award from the Prime Funder. Applicants will receive written notification when program funds are exhausted;

2. The applicant violates state or federal law during any point in the process;

3. The Project has not started 30 calendar days after the date of the Notice of Award from the Prime Funder. Example: the Prime Funder awards the funds, but an agreement is not in place after 30 calendar days to begin the project; or

4. If that proposal is not consistent with the purpose and activities for which match funds were requested, approval shall be rescinded. Department funds will be awarded only for those projects that receive financial support from the Prime Funder; any reserved match shall be reduced to required minimums, consistent with a reduced award from the Prime Funder. The minimum amount for an individual award shall be limited to $50 thousand.

(c) The applicant must provide to the Department, via electronic mail, the Notice of Award by the Prime Funder that includes funding amount to be awarded, award date (including matching obligation date if different from award date), and authorized signatory as proof of Prime Funding received. In consideration of the program functioning as first-come first-serve, the date that the Department received the Notice of Award for Prime Funding from the applicant shall be the date used to secure the applicant’s matching funds from the Department. The department shall award up to the total amount requested in individual grant applications to the top ranked grant applicants up to the maximum amount allowed under paragraph (7)(a). If funds are not available to award the total amount requested by an applicant due to awards of grants to higher ranked applications, the department may award partial grants to applicants up to the amount of the fiscal appropriation remaining in each state fiscal year.

(d) The maximum amount for an individual award shall be limited to $1 million. In the instance of a ranking tie between two or more applications, the application proposing the higher percentage of match shall be ranked higher. In the instance of a ranking tie between two or more applications, and those applications propose the same percentage of match, the individual scores of the reviewers shall be added, and the application with the higher added reviewer scores shall be ranked higher. If there is still a tie, then the application submitted earlier in date shall be ranked higher.

(e) The minimum amount for an individual award shall be limited to $50,000.00.

(f) The Department shall award up to the total amount requested in individual grant applications up to the maximum amount allowed under paragraph (7)(d). If funds are not available to award the total amount requested by an applicant, the Department will award partial match grants to applicants up to the amount of the fiscal appropriation remaining in each state fiscal year.

(g) If two or more applicants provide the Notice of Award for Prime Funding to the Department on the same date and the available Department funds are not able to fund both, the applicant with the highest averaged reviewer score shall receive funding. If there is a tie between the averaged reviewer scores then the applicant with the higher amount of match percentage shall receive funding. If there is still a tie, then the application submitted earlier in date and time shall receive funding.

(h) The Department is not liable for any Prime Funding lost due to insufficient funds in the Renewable Energy and Energy-Efficient Technologies Grant Matching Program.

(i) The Department reserves the right to conduct a pre-award site visit to verify the claims within the application.

(8) ADMINISTRATION.

(a) Matching grant funds must be awarded through a formal grant agreement negotiated and executed between the Department and the grant applicant. Either party has the discretion to terminate negotiations if an agreement is not reached within ten (10) business 45 days of announcement of award for Department matching funds. If the Department and the grant applicant are unable to negotiate an agreement, the grant shall not be awarded to that grant applicant.

(b) Grant agreements shall be limited to no longer than three (3) years in duration, unless approved in writing by the Department.

(c) Grant funds shall be distributed as reimbursements to recipients upon receipt of a formal invoice, supporting documentation, and upon Department grant manager approval for compliance with all requirements of the grant agreement, this rule chapter, and the Florida Statutes.

(d) Invoices shall be submitted by grantees not more frequently than once per month, and not less frequently than once per quarter.

(e) Expenses incurred by a grantee and its project partners for its project after the execution of a formal grant agreement shall be considered as match based upon the requirements of Section 377.804, F.S., and this chapter.

(f) Expenses incurred by a grantee and its project partners for its project between the date of the Department’s letter of reservation a notice of grant award and execution of formal grant agreement shall be considered as match if the proposed match would meet all requirements of this rule chapter and Chapter 377, F.S., which would be otherwise applicable to an awarded grant, and if the proposed match would not violate any other provisions of the law. The Department shall determine, on a case-by-case basis, whether such expenses qualify for match. Approval of such expenses as match are subject to negotiation of the grant agreement, and prior written approval by the Department is required. Consideration as match is not guaranteed.

Rulemaking Authority 377.804(3) FS. Law Implemented 377.802, 377.804 FS. History–New 10-22-07, Formerly 62-16.300, 27N-1.300, Amended_________.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Patrick Sheehan, Executive Director of the Office of

Energy

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Commissioner of Agriculture Adam H.

Putnam

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: April 3, 2014

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: March 5, 2014

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