08-08-2016 BPU RPT 10 - Laserfiche WebLink

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W A I E R E N E R G Y I. l F F RIVERSIDE PUBLIC UTILITIES Jl� W& Board Memorandum P U B L I C U T I L I T I E S BOARD OF PUBLIC UTILITIES DATE: AUGUST 8, 2016 ITEM NO: 10 SUBJECT: ICE ENERGY HOLDINGS, INC. PROPOSAL FOR THE RIVERSIDE PUBLIC UTILITIES CUSTOM ENERGY TECHNOLOGY GRANT TO FUND RESEARCH AND DEVELOPMENT FOR MANAGING INTERMITTENT RENEWABLE ENERGY GENERATION WITH RESPONSIVE AND REFLEXIVE ICE STORAGE CONTRAL SYSTEMS - IN THE AMOUNT OF $100,000 ISSUE: Recommend that City Council approve a Custom Energy Technology Grant for Riverside Public Utilities' commercial customer, Ice Energy Holdings, Inc., to fund the research and development of Managing Intermittent Renewable Energy Generation with Responsive and Reflexive Ice Storage Control Systems, in the amount of $100,000. RECOMMENDATION: That the Board of Public Utilities recommend that the City Council approve a Custom Energy Technology Grant to Ice Energy Holdings, Inc. in the amount of $100,000. The grant amount to be paid in three installments during Fiscal Year 2016 -17, in accordance with the Milestone Schedule attached in the grant agreement, for Managing Intermittent Renewable Energy Generation with Responsive and Reflexive Ice Storage Control Systems. BACKGROUND: One of Riverside Public Utilities' (RPU) programs funded from Public Benefits Funds is the Custom Energy Technology Grant (CETG) program. The program was created to provide RPU business electric customers with the opportunity to request funding for the advancement of renewable energy resource technology projects, research, development, and demonstration programs. Winning proposals selected should address the changes that the advancement of technology has brought into the utility industry in the last five years. RPU continuously looks for partnerships to explore ways to utilize technologies available today to make cleaner energy more reliable In November of 2015, Ice Energy Holdings, Inc. (Ice Energy) submitted a proposal to apply for grant funding through the CETG program. RPU's Grant Review Team is composed of RPU engineering staff and other staff members. They selected this project for funding by focusing on its direct effect on the utility, its operations, its potential impact to RPU's electric system, and its benefit to the community. RPU electric grants are awarded for energy- efficiency projects that are unique to a business or manufacturing process. The Team selected the Ice Energy proposal for meeting these qualifications. Research and development projects are also eligible under this program. The use of the grant funds must comply with the relevant portions of California Public Utilities Code Section 385 related to the use of Public Benefits Funds. The amount of grant funding awarded is up to 75% of the project cost with a maximum of $100,000 (whichever is less) per project. There is a 25% matching fund requirement associated with this program. Ice Energy Holdings, Inc. will contribute more than $46,000 in equipment and staff time for research and development to meet this requirement.