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HomeMy WebLinkAboutCalifornia Energy Commission (CEC) - 2016-11-07SUBCONTRACT No. 2017-3402 BETWEEN THE REGENTS OF THE UNIVERSITY OF CALIFORNIA AND CITY OF HUNTINGTON BEACH Subcontract No. ("Subcontract" ) is entered into e -A , 2017 between The Regents of the University of California, a corporation of the State of California, on behalf of its Irvine campus (herein after referred to as "University") and City of Huntington Beach (hereinafter referred to as "Subcontractor") for the delivery of services identified as defined in Article IA, STATEMENT OF WORK, and in accordance with the terms and conditions set forth herein. This Subcontract is awarded under the authority of Prime Award No. EPC-15-077 ("Prime Award") issued by California Energy Commission ("Commission"). SUBCONTRACT SCHEDULE ARTICLE 1 PERFORMANCE AND DELIVERY A. STATEMENT OF WORK The statement of work to be performed under this Subcontract is described in Exhibit A. B. KEY PERSONNEL The key personnel representing the University and the Subcontractor shall be as follows: Principal Investigator for University: Dr. Jack Brouwer, University of California Irvine Key Investigator for Subcontractor: Antonia Graham, City of Huntington Beach In the event a change in Key Investigator is necessary, the University will be notified within thirty (30) days after the Subcontractor reasonably knows the change is necessary. C. PERIOD OF PERFORMANCE The period of performance of this Subcontract shall be 06/15/2016 through 07/31/2018. D. TOTAL ESTIMATED COST It is estimated that the total cost to the University for performance of this Subcontract shall not exceed $90,000. Subcontractor shall cost share in the amount of $152,900. E. DELIVERY All materials and services called for under this Subcontract shall be completed and delivered to the University on or before unless extended by prior written authorization. ARTICLE 2 COST, PAYMENT AND BILLING A. ALLOWABLE COSTS AND FEES Allowable costs and fees eligible for reimbursement to the Subcontractor for performance of this Subcontract shall be determined in accordance with: a. The budget, attached hereto and incorporated herein as Exhibit B. b. The terms of this Subcontract. c. The Prime Award attached hereto and incorporated herein as Exhibit C. B. REBUDGETING Funds may be rebudgeted between components without prior approval except where prior approval is specifically required by the applicable terms and conditions. Any restriction on rebudgeting listed elsewhere in this Subcontract, however, shall take precedence over the above indicated authorities and policies. Rebudgeting requests which require Prime Award approval should be directed to the University's Principal Investigator for approval and then forwarded to the University's Office of Research Administration, Sponsored Projects Administration for administrative endorsement and transmittal to the prime agency for approval. C. PAYMENT Payment will be made by the University to the Subcontractor during the term of this Subcontract, but no more frequently than monthly, consistent with the provisions of Article 2A, upon presentation of the Subcontractor's invoice. The University shall not pay any invoice where total payments would result in a cumulative payment in excess of the limitations imposed by Article I or where rates used to determine costs vary from those (if shown) in Article 2A. The University, at its option, may elect to pay any invoice in accordance with Article 2A if the invoice is at variance with the article or may return the invoice unpaid to the Subcontractor for correction and resubmittal. All payments made are provisional, subject to acceptance (Article 7A), post -audit, and adjustment. All Subcontract expenditures must occur within the approved period of performance of this Subcontract. D. BILLING Invoices (Exhibit F) shall be submitted as follows: 1. No more frequently than month. 2. Referencing the Subcontract number and numerical sequence of the invoice. 3. Providing detail of expenditure in accordance with the budget categories listed. 4. Addressed to: University of California, Irvine Advanced Power & Energy Program 221 Engineering Lab Facility 2 Irvine, CA 92697-3500 Attn: Jeff Wojciechowski Owojciec@uci.edu) Fund No. 18507 ARTICLE 3 PATENT RIGHTS A. Pre -Existing Intellectual Property, Independently Funded Intellectual Property, and Pre- existing Data 1. Ownership Subcontractor agrees that if patentable discoveries or inventions are made and/or conceived or for the first time actually reduced to practice by the Subcontractor or its employees under the terms of this Subcontract, Subcontractor shall promptly furnish University with complete information thereon. Disposition of all subject inventions will be made in accordance with the provision of the Prime Award. 2. Project -relevant Pre -Existing Intellectual Property, and Project -relevant Independently Funded Intellectual Property (collectively, "Project -relevant Intellectual Property") and Project -relevant Pre-existing Data a. Identification of Project -relevant Intellectual Property and Project -relevant Pre- existing Data i. All Project -relevant Pre-existing Intellectual Property of Key Personnel that is owned or controlled by Subcontract is listed in Attachment 1 of the Prime Award Agreement attached hereto as "Subcontract #2016-3355 Exhibit C." Within forty-five (45) days of becoming aware that additional Project -relevant Pre-existing Intellectual Property of Key Personnel that is owned or controlled by Recipient has been or will be used in the performance of this Subcontract, Subcontractor will notify the University. Attachment 1 of the Prime Award Agreement ("Attachment I") may be amended by a Letter of Agreement. ii. All Project -relevant Independently Funded Intellectual Property of Key Personnel that is owned or controlled by the Subcontract and the source of funding for such Intellectual Property is described in Attachment 1 of the Prime Award Agreement. Within forty-five (45) days of becoming aware that additional Project -relevant Independently Funded Intellectual Property of Key Personnel that is owned and controlled by Subcontractor has been or will be used in the performance of this Subcontract, Subcontractor will notify the University. Attachment 1 of the Prime Award Agreement may be amended by a Letter of Agreement. iii. During the term of this Subcontract, Subcontractor will use reasonable efforts to notify the University of any Project -relevant Intellectual Property of Key Personnel that is owned or controlled by the Subcontractor that Subcontractor becomes actually aware of, with the qualification that Subcontractor is not in a position to guarantee that all potential Project -relevant Intellectual Property has been identified. iv. If Subcontractor will be using Project -relevant Pre-existing Data of Key Personnel that is owned or controlled by Subcontractor in the performance 3 of this Subcontract that have restrictions on use, such data and use restrictions will also be identified in Attachment 1 of the Prime Award Agreement, which may be amended by a Letter of Agreement. b. Access to Project -Relevant Intellectual Property and Project -relevant Pre-existing Data The University may access Project -relevant Intellectual property identified in Attachment 1 of the Prime Award Agreement, and Project -relevant Pre-existing Data of Key Personnel that is owned or controlled by Subcontractor, whether or not it is identified in Attachment 1, but only to the extent that such access to limited to that reasonably necessary to: (a) demonstrate the validity of any premise, postulate, or conclusion referred to or expressed in any product or report; or (b) establish a baseline for repayment purposes. No express or implied licenses or other rights are provided to the University under any patents, patent applications, or other proprietary rights of the Subcontractor. Upon the University's request, the Subcontractor will provide the University with access to review the Subcontractor's Project -relevant Intellectual Property and Project -relevant Pre-existing Data. If such Project -relevant Intellectual Property or Project -relevant Pre-existing Data has been designated as Confidential Information, the University will only disclose it under the circumstances specified in Title 20 CCR Sections 2506, 2507, and 2508. c. Preservation of Project -Relevant Intellectual Property The Subcontractor will preserve any of its Project -relevant Intellectual Property at its own expense for at least five (5) years from the Subcontractor's end date or until the timeframe in Subcontractor's retention policy, whichever is longer. Notwithstanding the foregoing, Subcontractor has the sole right but not the obligation to prosecute or maintain patent protection for any of its Project - relevant Intellectual Property and Project -relevant Pre-existing Data in Article 3(A)2.b. B. Intellectual Property 1. Ownership Except as otherwise specified in this Subcontract, the Subcontract owns all Intellectual Property created, conceived or reduced to practice, discovered, made, developed, or altered by Subcontractor in the performance of this Subcontract. 2. Data Rights a. Pre-existing Data that will be included as a deliverable under this Subcontract will be identified in Attachment 1. If the University provides its own pre-existing data, the University shall mark all such data, and Subcontractor may only use it for purpose of the Statement of Work of this Subcontract, unless such data is otherwise publicly available. b. At the University's expense for actual cost of duplication and delivery, Subcontractor shall deliver additional Project Data that is specifically requested by the University. c. The University shall have the unrestricted right to use the Deliverable Data and delivered Project Data, subject to applicable pre-existing use and disclosure restrictions identified in Attachment 1 and other provisions in this Subcontract, including but not limited to Confidentiality — Section 19 "Confidentiality" of 4 Prime Award EPC-15-086 is incorporated into this Subcontract by reference and made part of it as if set forth in full. d. The Subcontractor shall have the unrestricted right to use Project Data, subject to applicable use and disclosure restrictions identified in Attachment 1 and other provisions in this Subcontract, including but not limited to Confidentiality. 3. Copyrights a. All rights to Copyrightable Works other than Reports first created by the Subcontractor are the property of the Subcontractor. Unless pre-existing restrictions are listed under Attachment 1, the Subcontractor grants the State of California, including the Commission, a fully paid -up, royalty -free, non- exclusive, non -transferable, non-sublicensable, irrevocable license to reproduce, prepare derivative works, distribute copies, perform publicly, and display Copyrightable Works specified for delivery in the Statement of Work. b. Notwithstanding 2.a. above, when the purpose of the Statement of Work is specifically to create a Copyrightable Work for use by the Commission and that fact is indicated in the Statement of Work, then all rights in such Copyrightable Work will be the property of the Commission. The Commission grants to Subcontractor a fully paid -up, royalty -free, non-exclusive, non -transferable, non- sublicensable, irrevocable license to reproduce, prepare derivative works, distribute copies, perform publicly, and display publicly such Copyrightable Work for educational and research purposes and to allow other educational and nonprofit institutions to do so for educational and research purposes. c. Upon written request and subsequent amendment, the University may request delivery of computer software that is not identified as a Product, but was first created by the Subcontractor in the performance of the Statement of Work. To the extent the Subcontractor is legally able to do so, Subcontractor shall grant the state of California, including the Commission, a fully paid -up, royalty -free, nonexclusive, non -transferable, non-sublicensable, irrevocable license to reproduce, prepare derivative works, distribute copies, perform publicly, and display publicly such software, if any, identified Attachment 1. d. Copyrightable Works that may be patentable are also subject to the Patent Rights clause, which will take precedence in case of a conflict. e. The Commission may direct Subcontract to issue a no -cost, non-exclusive, non- sublicensable, irrevocable, royalty -free, worldwide, perpetual license to Copyrightable Works described in subparagraphs a. and b. above to Load -serving entities and/or the third parties working with a Load -serving entity, for the Load - serving entity's use in enhancing its service to EPIC ratepayers. This license is for non-commercial purposes, meaning that it does not allow Load -serving entities to sell, commercially offer or distribute Copyrightable Works to others or in marketplace. For example, if the Subcontractor creates copyrightable software, the Commission can give a Load -serving entity the right to use the software as part of its operations providing service to EPIC ratepayers, but the Load -serving entity cannot sell or distribute the software. 4. Patent Rights a. Subject to the requirement of law, all rights to any Subject Inventions shall belong to the Subcontractor. The State of California, including the Commission, shall have a no -cost, non-exclusive, non -transferable, non-sublicensable, irrevocable, royalty -free, worldwide, paid -up license to practice, or have practiced, such Subject Invention for governmental purposes, including the Commission's statutory objectives. A confirmatory license will be executed by the Subcontractor to provide said license to any such Subject Invention, within ninety (90) days after filing for patent application. Notwithstanding the foregoing and except if the Commission exercises March -in Rights, Subcontractor has the sole right but not the obligation to prosecute or maintain patent protection for any Subject Invention and any time. b. The Commission may direct Subcontract to issue a no -cost, non-exclusive, non- sublicensable, irrevocable, royalty -free, worldwide, paid -up license to Subject Inventions to Load -serving entities and/or the third parties working with a Load - serving entity, solely to practice Subject Invention for non-commercial purposes, so as to enhance the Load -serving entities' service to EPIC ratepayers. This license is for non-commercial purposes, meaning that it does not allow Load - serving entities to sell, commercially offer or distribute patentable works to others or in marketplace. For example, if the Subcontractor creates patentable software, the Commission can give a Load -serving entity the right to use the software as part of its operations providing service to EPIC ratepayers, but the Load -serving entity cannot sell or distribute the software. c. If any Subject Invention that is subject to the licenses above has been designated as Confidential Information as specified herein, all license holder will only disclose the Subject Invention under the circumstances specified in Title 20 CCR Sections 2506, 2507, and 2508. All license holders will ensure that their officers, employees, and subcontractors who have access to the Subject Invention are informed of and abide by the disclosure limitations indicated in the Confidential Information term. 5. Commission's Right to Subject Inventions a. March -in Rights With respect to any Subject Invention in which Recipient has title and to the extent permissible under Federal laws and regulations, the Commission shall have the right to require Subcontractor or Subcontractor's Licensee to grant a nonexclusive, partially exclusive, or exclusive license in any field of use to a responsible applicant, upon terms that are reasonable under the circumstances, if the Commission determines that: (i) the Subcontractor or Subcontractor's Licensee has not taken, or is not expected to take within a reasonable time, effective steps to achieve practical application of the Invention; or (ii) action is necessary to alleviate health or safety needs that are not reasonably satisfied by Subcontractor or Subcontractor's Licensee. If the Subcontractor or Subcontractor's Licensee refuses such request, the Commission may grant such a license itself. The parties may refer to the Federal Government's procedures for handling march -in rights. b. Notice of Patent If any patent is issued for a Subject Invention, the Subcontractor will send the University written notice of the issuance within two (2) months of the issuance 0 date. The notice include the patent title, issuance number, and a general description of the Subject Invention. Legal Notice The Subcontractor and all persons and/or entities obtaining an ownership interest in Subject Inventions must include the following statement within the specification of any United States patent application, and any subsequently issued patent for the invention: "This invention was made with State of California support under California Energy Commission grant number EPC-15-086. The Energy Commission has certain rights to this invention." 6. Access to and Preservation of Subject Inventions and Copyrightable Works a. Access Upon the Commission Agreement Manager's request, the Subcontractor will provide the Commission Agreement Manager and any individuals designated by the Commission or the CPUC with access to the Subcontractor's Subject Inventions and to Copyrightable Works which are subject to Article 3(3)a. and b., in order to exercise the licenses described above, and to determine any royalty payments due under the Subcontract. b. Preservation The Subcontractor will preserve Subject Inventions and Copyrightable Works which are subject to Article 3(3)a. and b., in order to exercise the licenses described above, at its own expenses for at least ten (10) years from the Subcontract's end date or until the timeframe in Subcontractor's retention policy, whichever is longer. Notwithstanding the foregoing, Subcontractor is not obliged under this Subcontract to obtain or maintain any intellectual property protection for Subject Inventions. Subcontractor has the sole right but not the obligation to file a patent application for a Subject Invention, but Subcontractor will file and prosecute a patent application for any Subject Invention which a Licensee has a license under Article 3(4)b., upon written request by such Licensee and at Licensee's expense. C. Royalty Payments to the Commission 1. In consideration of the Commission providing funding for the Prime Award, Subcontractor agrees to pay the Commission a portion of either Net Revenues or Net Royalties under the terms and conditions hereinafter set forth. If federal funds are used in the conception or reduction to practice of a Subject Invention, such Net Revenues or Net Royalties calculation made for the Subcontractor's prior fiscal year. Subcontractor agrees to pay to Commission an amount equivalent to 10% of the total cumulative Net Royalties, less payments made by Subcontractor to Commission in previous years when Net Royalties were positive. Payments shall be made by check and made payable to the California Energy Commission, EPIC Fund. 2. Net Revenue. If the Subcontractor is a licenses, the Subcontractor's obligation to make payments to the Commission shall commence upon the first sale of the Licensed Product. Payments are payable in annual installments and are due the first day of March for the prior fiscal year of the Subcontractor and extend until ten (10) years from the Subcontract's end date. Subcontractor agree to pay an amount equivalent to 1.5% of the Net Revenues by check made payable to the California Energy Commission, EPIC Fund. D. If a Licensed Project was developed in part with Match Funds during the Subcontract term, the Net Royalty payments will be reduced in accordance with the percentage of such development activities that were funded with Match Funds. For example, if 20% of the development activities that were funded with Match Funds during the Subcontract and total cumulative Net Royalties equaled $100,000 in one year, the Subcontractor would owe the Energy Commission $8,000 for the year (10% of $100,000 = $10,000; 80% of $10,000 = $8,000 (the 80% coming from 100% - 80% in match funds)). If the Energy Commission is providing funds to the Subcontractor under this Subcontract as a project match partner and Energy Commission funds are used in part to develop a Licensed Project, the Net Royalty payments will be reduced in accordance with the percentage of such development activities that were funded with non -Energy Commission funds during the Subcontract term. For example, if 80% of the development activities were funded with Subcontract and/or third party funds during the Subcontract and Net Royalties totaled $100,000 in one year, the Subcontract would owe the Energy Commission $2,000 for the year (10% of $100,000 = $10,000; 20% of $10,000 = $2,000 (the 20% coming from 100% - 80% in match funds)). E. Unless the Subcontractor makes an early buyout, total Net Royalty or Net Revenues payments will be limited to three (3) times the amount of funds paid by the Energy Commission under the Subcontract. The Subcontract may make an early buyout payment to the Energy Commission without a prepayment penalty, as an alternative to making annual royalty payments for ten (10) years following the Subcontract's end date. The payment must be in a lump sum amount equal to one and a half (1.5) times the amount of funds paid by the Energy Commission under the Subcontract and made within five (5) years of the Subcontract's end date. The payment amount due under the early buyout option will not be reduced by the percentage of Match Funds as described above. F. Subcontractor agrees not to make any sale, license, lease, gift or other transfer to any Project Data Subject Invention, Copyrightable Work or Licensed Project with the intent of, or for the purpose of, depriving Commission of Net Royalties or Net Revenues hereunder Generally this means that the Subcontract will not make any sale, license, lease or other transfer of Project Data, Subject Invention, Copyrightable Work or Licensed Product for consideration other than fair market value except for research, educational, or other mutually agreed to purposes intended to serve the public benefit. G. The Subcontractor shall maintain separate accounts within their financial and other records for purposes of tracking royalties and revenues due to the Commission under this Subcontract. H. Audits on Payments to Commissions. Payment to the Commission are subject to the Audit clause. I. Defaults. In the event of default hereunder, the Commission shall be free to exercise all rights and remedies available to it herein, and under law and at equity. The Subcontractor's failure to pay when due, any amount due and payable under the terms of this Subcontract constitutes a default under this Subcontract. ARTICLE 4 PUBLICATIONS, COPYRIGHTS AND RIGHTS TO DATA Prior review by University's Principal Investigator shall be obtained by Subcontractor for publication of any research report or other publication resulting from work performed on this Subcontract. Decisions about authorship on all publications resulting from work under the Prime Award and this Subcontract shall be made by University's Principal Investigator and Subcontractor's Key Investigator, prior to any such publication. Two reprints of publications resulting from work performed in whole or in part under this Subcontract shall be submitted to University's Principal Investigator. Except as otherwise provided in the conditions of the Prime Award, when publications or similar materials are developed from work supported in whole or in part by this Subcontract, the author is free to arrange for copyright without approval. A copy of such material shall be provided to University. University shall have the right to publish, disclose, disseminate and use, in whole or in part, any data and information received or developed under this Subcontract. ARTICLE _5 ADVERTISING AND PUBLICITY Neither the Subcontractor nor the University will use the name of the other, either expressly or by implication, in any news, publicity release, or other fashion without the express written approval of the other party of this Subcontract. ARTICLE 6 ACKNOWLEDGMENT An acknowledgment of University and Prime Award support and a disclaimer must appear in the publication of any material, whether copyrighted or not, based on or developed under this Subcontract, in the following terms: This material is based on work supported by California Energy Commission under Prime Award no. EPC-15-077 and The Regents of the University of California. All materials except scientific articles or papers published in scientific journals must also contain the following: Any opinions, findings, and conclusions or recommendations expressed in this publication are those of the author(s) and do not necessarily reflect the views of California Energy Commission or The Regents of the University of California. ARTICLE 7 ACCEPTANCE AND REPORTS A. INSPECTION AND ACCEPTANCE 0 All work performed under this Subcontract is subject to inspection and acceptance by the University or its authorized representative. B. TECHNICAL REPORTS AND DOCUMENTS Technical progress reports are due on a quarterly basis. Any reports required by this Subcontract shall be due within thirty (30) days of the date of formal request. Inspection and acceptance for all reports and documents called for under this Subcontract shall be at the following address: University of California, Irvine National Fuel Cell Research Center 221 Engineering Laboratory Facility Irvine, CA 92697-3975 Attn: Professor Jacob Brouwer C. CLOSE-OUT Subcontractor shall submit Patent Statement and Equipment Report (Exhibit D) and Subcontractor's Release documents (Exhibit E) no later than sixty (60) days after termination of this Subcontract to the billing address in order to fulfill the reporting requirements of the Prime Award. ARTICLE 8 SPECIAL PROVISIONS A. RECORDKEEPING, COST ACCOUNTING, AUDIT 1. Cost Accounting Subcontractor agrees to keep separate, complete, and correct accounting of the costs involved in completing the Subcontract and match funded (if any) portion of this project. Financial records, supporting documents, and all other records pertinent to this Subcontract shall be retained for a period of four (4) years from the date of termination of this Subcontract. The University shall have the right to examine Subcontract's books of accounts at all reasonable times to the extent and as is necessary to verify the accuracy of Subcontractor's reports. Subcontracts over $10,000: University, Prime Award Sponsor, the Comptroller General of the United States, or any of their duly authorized representatives, shall have access to any books, documents, paper and records of Subcontractor which are directly pertinent to this agreement for the purpose of making audits, examinations, excerpts and transcriptions. 2. Accounting Procedures The Subcontractor's costs shall be determined on the basis of the Subcontractor's accounting system procedures and practices employees as of the effect date of this Subcontract, provided that the Subcontractor shall use generally accepted accounting principles and cost reimbursement practices. The Subcontractor's cost accounting 10 practices used in accumulating and reporting costs during the performance of this Subcontract shall be consistent with the practices used in estimating costs of any proposal to which this Subcontract relates; provided that such practices are consistent with the other terms of this Subcontract and provided, further, that such costs may be accumulated and reported in greater detail during performance of this Subcontract. The Subcontractor's accounting system shall distinguish between direct costs and indirect costs. All costs incurred for the same purpose, in like circumstances, are either direct costs only or indirect costs only with respect to costs incurred under this Subcontract. 3. Allowability of Costs a. Allowable Costs The costs for which the Subcontractor shall be reimbursed under this Subcontract include all costs, direct and indirect, incurred in the performance of work that are identified in the Subcontract budget. Costs must be incurred within the period of performance of the Subcontract. Factors to be considered in determining whether an individual item of cost is allowable include (i) reasonableness of the item, (ii) appropriate use of the allocability of the item to the work, (iii) applicable federal cost principles incorporated by reference in this Subcontract, and (iv) the terms and conditions of this Subcontract. b. Unallowable Costs The following is a description of some specific items of cost that are unallowable; provided, however, that the fact that a particular item of cost is not included shall not mean that it allowable. Details concerning the allowability of costs are available from the Prime Award Sponsor's Accounting Office. i. Profit or Fees, Contingency Costs, Imputed Costs, Fines and Penalties, Losses, Excess Profit Taxes and increased rates for this Subcontract ii. The University will pay for state iii. or local state or use taxes on expenditures. C. Except as provided for in this Subcontract, Subcontractor shall use the federal regulations incorporated by reference in this Subcontract when determining allowable and unallowable costs. In the event of a conflict, this Subcontract takes precedence over the federal regulations. 4. Audit Rights Subcontractor shall maintain books, records, documents, and other evidence, based on the procedures set forth above, sufficient to reflect properly all costs claimed to have been incurred in performing this Subcontract. The University may audit such accounting records at all reasonable times with prior notice by the University. It is the intent of the parties that such audits shall ordinarily be performed not more frequently than once every twelve (12) months during the performance of the work and once at any time within three (3) years following payment by the University of the Subcontractor's final invoice. However, performance of any such interim audits by the University does not preclude further audit. 5. Refund If the University determines, that any invoiced and paid amounts exceed the actual allowable incurred costs, Subcontractor shall repay such amount to the University within thirty (30) days of request or as otherwise agreed by the University and Subcontractor. If 11 the University does not receive such repayment, the University shall be entitled to withhold further payments under this Subcontract to the Subcontractor or seek repayment from the Subcontractor. 6. Match Funds If the budget includes a match funds requirement, the Subcontractor's commitment of resources, as described in this Subcontract, is a required expenditure for receipt of Subcontract funds. Subcontract funds will be released only if the required percentages of march funds are expended. The Subcontractor must maintain accounting records detailing the expenditure of the march funds reported as match funds expenditures on the Subcontractor's request for payment. B. ASSIGNMENT This Subcontract may not be assigned in whole or in part without the prior written consent of the University. C. TERMINATION 1. Default In the event of any default of this Subcontract, University may, without prejudice to any of its other legal remedies, terminate this Subcontract upon five (5) days written notice to Subcontractor. 2. For Cause This Subcontract may be terminated by either party upon thirty (30) days written notice to the other party, except that the termination of the Prime Award concurrently terminates this Subcontract with the same date. In such event, Subcontractor agrees to use all reasonable efforts to mitigate its expenses and obligations. The term "for cause" includes, but it not limited to, the following reasons: a. Loss or redirection of funding for this Subcontract, b. Significant change in Prime Award Sponsor's policy such that the work being funded would not be supported by the Prime Award Sponsor; c. Change in Prime Award Sponsor's staffing such that the work being funded can be done by staff of Prime Award Sponsor. 3. Allowable Costs The federal regulations incorporated into this Subcontract and Prime Agreement attached hereto as Exhibit C shall be used to determine allowable termination costs, but not in excess of the total amount of the Subcontract. D. TITLE TO EQUIPMENT Title to equipment (initial cost of $5000 or more and an expected service life of two (2) years or more) purchased by the Subcontractor pursuant to the terms of this Subcontract shall vest in the Subcontractor provided prime agency has not reserved the right to take or transfer title. E. INDEMNIFICATION Subcontractor shall defend, indemnify and hold University, its officers, employees and agents harmless from and against any and all liability, loss, expense, attorneys' fees, or claims for injury or damages arising out of the performance of this Subcontract but only in proportion to and to the extent such liability, loss, expense, attorneys' fees, or claims for 12 injury or damages are caused by or result from the negligent or intentional acts or omissions of Subcontractor, its officers, agents or employees. University shall defend, indemnify and hold Subcontractor, its officers, employees and agents harmless from and against any and all liability, loss, expense, attorneys' fees, or claims for injury or damages arising out of the performance of this Subcontract but only in proportion to and to the extent such liability, loss, expense, attorneys' fees, or claims for injury or damages are caused by or result from the negligent or intentional acts or omissions of University, its officers, agents or employees. F. PRIME AWARD All applicable provisions contained in Prime Award No. EPC-15-086 from California Energy Commission shall be binding upon the Subcontractor, and the Subcontractor hereby agrees to comply with same. A copy of the Prime Award is attached to this Subcontract as Exhibit C. G. CERTIFICATIONS 1. Debarment, Suspension, Ineligibility and Voluntary Exclusion -Lower Tier Covered Transactions (a) The prospective lower tier participant certifies, by execution of this subcontract, that neither it nor its principals is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any Federal department of agency. (b) Where the prospective lower tier participant is unable to certify to any of the statements in this certification such prospective participant shall attach an explanation to this proposal. 2. Restriction on Lobbying (in all subcontracts over $100,000 under federal grants, contract, and cooperative agreements). Subcontractor in executing this Subcontract is certifying that as of December 23, 1989, it neither has used nor will use any appropriated federal funds to lobby for or otherwise influence the awarding or amending of this Subcontract, and that it will disclose the use of any non-federal funds used for these purposes. H. Travel and Per Diem 1. Those trips already identified in the Budget are considered approved when this Subcontract goes into effect. Travel not listed in the Budget of this Subcontract shall require prior written authorization from the University. When requesting such approval, Subcontractor will identify who shall travel, the purpose of the travel and the destination. 2. Subcontractor must document travel expenses in its financial records as follows: i. Expenses must be detailed. ii. Expenses must be listed by trip, including date and times of departure and return. iii. Subcontractor must retain receipts for travel expenses claimed for audit and verification. 3. Travel not listed in the Budget of this Subcontract shall require prior written authorization, via e-mail or other means, from University. Standard of Performance 13 1. Subcontractor and their employees in the performance of Subcontractor's work under this Subcontract shall be responsible for exercising the degree of skill and care required by customarily accepted good professional practices and procedures used in scientific and engineering research fields. 2. The failure of a project to achieve the technical or economic goals stated in the Statement of Work is not a basis for the University to determine that the work is unacceptable, unless the work conducted by the Subcontractor is deemed to be have failed the foregoing standard of performance. 3. In the event that Subcontractor fails to perform in accordance with the foregoing standard of performance, the University shall seek to negotiate in good faith an equitable resolution satisfactory to both parties. 4. Nothing contained in this section is intended to limit any of the rights or remedies which the parties may have under the law. J. Access to Sites and Records The Energy Commission staff or its representatives shall have reasonable access to all project sites and to all records related to this Subcontract. K. Nondiscrimination Statement of Compliance During the performance of this Subcontract, Subcontractor shall not unlawfully discriminate, harass or allow harassment, against any employee or applicant for employment because of sex, sexual orientation, race, color, ancestry, religious creed, national origin, physical disability (including HIV and AIDS), mental disability, medical condition (cancer), age (40), marital status, and denial of family care leave. Subcontractor shall insure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment. Subcontractors shall comply with provisions of the Fair Employment and Housing Act (Government Code Sections 12990 et seq.) and the applicable regulations promulgated hereunder (California Code of Regulations, Title 2, Section 7285 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code Section 12990 (a-f), set forth in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations are incorporated into this Subcontract by reference and made a part of it as if set forth in full. Subcontractor shall give written notice of their obligations under this section to labor organizations with which they have a collective bargaining or other Subcontract. L. Survival of Terms It is understood and agreed that certain provisions shall survive the completion or termination date of this Subcontract of any reason. The provisions include, but are not limited to: 1. Recordkeeping, Cost Accounting and Auditing 2. Equipment 3. Pre -Existing Intellectual Property, Independently Funded Intellectual Property, and Pre-existing Data 4. Intellectual Property 5. Royalty Payments to the Energy Commission 6. Access to Sites and Records M. Definitions 14 1. Confidential Information: any data or information that is proprietary to the Disclosing Party, allowed to be kept confidential under the California Public Records Act (Government Code Section 6250 et seq.) or other applicable law, and not publicly known at the time of disclosure to the receiving party. 2. Copyrightable Work means any copyrighted work as defined under U.S. copyright law to which the Subcontractor or Match Fund has acquired title that is first created in the performance of the Statement of Work under this Subcontract and is not a scholarly work. 3. Data means information, regardless of the form or medium including, but not limited to drawing, lists, findings, computations, notes, diagrams, data files, statistical records and other research data. 4. Pre-existing Data means Data possessed or owned by the Subcontractor that exists prior to the Subcontract start date or developed during the Subcontract without Commission or Match Funds. 5. Project means the entire effort undertaken by Subcontractor in the performance of this Subcontract and consisting of the work funded in whole or in part by the Prime Award. 6. Project -relevant Pre-existing Data means Pre-existing Data used by Subcontractor in the performance of the Statement of Work conducted under this Subcontract. 7. Project Data means Data that is first produced in the performance of this Subcontract by Subcontractor or a Match Funds partner. Project Data does not include a researcher's laboratory notebook, but may include the Data contained therein. 8. Deliverable Data means Project Data that is identified in the Statement of Work and required to be delivered to the University or Commission. 9. Equipment is defined as having a useful life of at least one year, having an acquisition unit cost of at least $5,000, and purchased with Energy Commission funds. Equipment means any projects, objects, machinery, apparatus, implements or tools purchased, used or constructed with the Project, including those products, objects, machinery, apparatus, implements or tools from which over thirty percent (30%) of the equipment is composed of Materials purchase for the Project. For purposes of determining depreciated value of equipment used in the Subcontract, the Project shall terminate at the end of the normal useful life of the equipment purchased, funded and/or developed with Prime Award funds. The Energy Commission may determine the normal useful life of such equipment. 10. Key Personnel are employees of the Subcontractor who are both listed in the Subcontract and critical to the outcome of the project. For example, they may have expertise in the particular field or have experience that is not available from another source. Replacing these individuals may affect that outcome of the project. 11. Independently Funded Intellectual Property means Intellectual Property created, conceived, discovered, made, developed, altered, or reduced to practice by the Subcontractor during or after the Subcontract term without Commission or Match Funds, and any associated proprietary rights to these items that are obtained with Energy Commission or Match Funds, such as patent and copyright. 12. Intellectual Property means inventions, technologies, designs, drawings, software, formulas, compositions, processes, techniques, works of authorship, trademarks, 15 service marks, logs, and any associated proprietary rights to these terms, such as patent and copyright, including and any upgrades or revisions to these items. 13. Licensed Product means any project commercialized by a Licensee that embodies or utilizes Project Data, a Subject Invention or Copyrightable Work. 14. Licensee means the organization that is granted commercial rights to Project Data, a Subject Invention or Copyrightable Work develop any of these into a commercial product that is made available to the public in the marketplace or otherwise sold. 15. Load -serving entity means a company or other organization that provides electricity to EPIC ratepayers. 16. Match Funds means cash or in -kind contributions shown in the approved budget, Exhibit B, and provided by Subcontractors or other parties that will be used in performance of this Subcontract. 17. Match Fund Partner means an entity providing Match Funds that does not receive any Commission funds. 18. Materials means the substances used in constructing a finished object, commodity, device, article or product. 19. Net Revenues means the total of the gross invoice prices of Licensed Product sold, less the sum of the following actual and customary deductions where applicable: cash, quantity discounts; sales, use, tariff, import/export duties or other excise taxes imposed upon particular sales; transportation charges; and allowance or credits to customers because of rejections or returns. 20. Net Royalties means gross licensing income, including royalties and fees, received by Subcontractors from a Licensee as consideration for commercially licensing any Subject Invention, Copyrightable Work, or Project Data, less the following: a. Legal or other direct expenses (that are not otherwise reimbursed under an option or license agreement from a third party) of patenting, protecting and preserving patent, copyright and related property rights, maintaining patents and other such costs, taxes, or reimbursements as may be necessary or required by law, except patent infringement expenses; b. Inventor or author shares in accordance with Subcontractor's patent or copyright policy; and c. Direct expenses include operating expenses of Subcontractor which are customarily reimbursed by royalty payments. Net Royalties do not include any payments to joint holders nor research funding accepted by Subcontractor in association with an option or licensing agreement. Net Royalties shall be aggregated cumulatively, over time for each disclosed Subject Invention, Copyrightable Work, or Project Data. 21. Ownership means exclusive possession and control of all rights to property, including the right to use and transfer property. 22. Pre-existing Intellectual Property means Intellectual Property that the Subcontractor owned and possessed prior to the effective date of this Subcontract and that have not been developed, altered, or reduced to practice with Energy Commission or Match Funds, and any associated proprietary rights to these items that are obtained without Energy Commission or Match Funds, such as patent and copyright. 16 23. Products means all tangible research products first made by Subcontractor, or Match Fund Partners in the performance of this Subcontract and specified for delivery in the Statement of Work, but not a Subject Invention nor a Copyrightable Work. 24. Project -relevant Pre-existing Intellectual Property means Pre-existing Intellectual Property used by Subcontractor or Match Fund Partners in the performance of the Statement of Work conducted under this Subcontract. 25. Project -relevant Independently Funded Intellectual Property means Independently Funded Intellectual Property used by Subcontractor or Match Fund Partners in the performance of the Statement of Work under this Subcontract. 26. Report means all required reports specified for delivery to the University in the Statement of Work. 27. Subject Invention means any patentable invention or discovery that is either: a. Conceived and first actually reduced to practice (actually reduced to practice or constructively reduced to practice by the filing of a patent application) in the performance of the Statement of Work; b. Conceived in the performance of the Statement of Work and first reduced to practice in the performance of the Statement of Work conducted under this Subcontract or within forty-two (42) months after the completion of the Statement of Work; c. Conceived prior to the effective date of this Subcontract or conceived without Energy Commission funds and reduced to practice in the performance of the Statement of Work, provided that such conception is not encumbered by any obligations owed to a third party other than the U.S. Government. ARTICLE 9 NOTICE AND CONTACTS A. Notices shall be directed to the appropriate individual(s) noted below. UNIVERSITY CONTACTS Principal Investigator Name: Dr. Jack Brouwer Address: National Fuel Cell Research Center 221 Engineering Laboratory Facility Irvine, CA 92697-3975 Telephone: 949-824-8191 Email: jbrouwer@uci.edu Authorized Official Name: Grace J. Park Address: UCI, Office of Research 5171 California Avenue, Suite 150 Irvine, CA 9269-17600 Telephone: 949-824-7218 Email: parkgj@uci.edu SUBCONTRACT CONTACTS Key Investillator Name: Antonia Graham, Assistant to the City Manager Address: 2000 Main Street Huntington Beach, CA 92648 Telephone: (714) 536-5537 Email: Antonia. grahamLasurfcity-hb.org Authorized Official Name: Fred Wilson, City Manager Address: 2000 Main Street Huntington Beach, CA 92648 Telephone: (714) 375-8465 Email: Fred.Wilsonnsurfcity-hb.org 17 Financial Contact Financial Contact Name: Jeff Wojciechowski Name: Sunny Han, Finance Project Manager Address: Advanced Power & Energy Program Address: 2000 Main Street 221 Engineering Lab Facility Huntington Beach, CA 92648 Irvine, CA 92697-3550 Telephone: (714) 536-5907 Telephone: 949-824-7302 Email: Sunny.Han@surfcity-hb.org Email: jwojciec@uci.edu B. Whenever any notice is to be given hereunder, it shall be in writing and shall be deemed received, if delivered by courier on a business day, on the day delivered, or on the second business day following mailing, if sent by first-class certified or registered mail, postage prepaid. ARTICLE 11 CONTENTS AND ORDER OF PRECEDENCE Attached to this subcontract are the following exhibits: EXHIBIT A - Statement of Work EXHIBIT B - Cost Estimate EXHIBIT C - Prime Award No. EPC-15-077 EXHIBIT D - Patent Statement and Equipment Report EXHIBIT E - Subcontractor's Release EXHIBIT F - Invoice Form Insofar as these instruments apply to this subcontract together with the instruments previously enumerated and those listed below, they constitute the entire agreement and understanding between the University and Subcontractor. In the event of an inconsistency in this Subcontract, the inconsistency shall be resolved by giving precedence in the following order. 1. Subcontract Schedule 2. Prime Award No. EPC-15-077 ARTICLE 12 GOVERNING LAW This Subcontract shall be governed by the laws of the State of California without regard to its conflicts of law principles. ARTICLE 13 ENTIRE AGREEMENT, WAIVERS, AND AMENDMENTS This Subcontract contains the full and complete agreement between the two parties. All modifications must be in writing and signed by the University's Institutional Official and the Subcontractor's Contracting Officer. No verbal agreements or conversations with any officer or 18 employee of either party shall affect or modify any of the terms and conditions of this Subcontract. APPROVED AND AGREED: The Regents of the University of California By: Name: Grace J. Park Title: Subcontract Manager Date: 2/ /S ' !% Subcontractor: City of Huntington Beach By: 4J4, City Manager By:7T City Clerk APPROVED AS TO FORM: Date: 9C1_A 201 acv-4- INITIATED ND AP OVED: Y. Assistant- anager M 19 EXHIBIT 13 FINAL 17 December 2015 Budget and Budget Justification The budget that is required for the City of Huntington Beach to participate in the proposed effort is presented in Table 1 below. This budget estimate includes support of salaries for Antonia Graham, Energy and Sustainability Manager/Assistant to the City Manager, Sunny Han, Finance Project Manager, and Kirsten Graham, Energy and Sustainability Intern. The travel costs are for collaboration meetings in Irvine and attendance at local conferences to highlight the work being done in the Oak View Community, while the materials and supplies costs are for computer software and hardware as well as publication expenses. Indirect costs are assessed at City of Huntington Beach rate of 10% de minimus rate of total direct costs per 2 CFR 200.331(a)(4). Benefits rates are calculated individually based on the individuals salary — this varies. Note that the CEC budget request for each of the budget categories sums to a total of $90,000. A significant amount of cost share is provided by the City of Huntington Beach in the form of salary and benefits for staff that will directly participate in the project. Table 1. Proposed Budget Details, for the Project Budget Item: CEC Cost Share Total Amount Amount Salaries* This is the fully burdened $60,000 $152,900 rate for the three project employees Employee benefits 0 Tuition and Fees 0 0 Equipment 0 0 Materials & $28,000 Supplies Travel $2,000 Subcontracts Other Direct Costs Indirect Costs TOTALS:1 $90,000 $152,900 EXHIBIT C RECIPIENT The Regents of the University of California, Irvine campus AGREEMENT NUMBER EPC-15-077 ADDRESS AGREEMENT TERM 6/15/2016 to 7/31/2018 University of California, Irvine The effective date of this Agreement is either the start date or the approval Office of Research Administration date by the California Energy Commission, whichever is later. The California Energy Commission shall be the last party to sign. No work is 5171 California, Suite 150 authorized, nor shall any work begin, until on or after the effective date. PROJECT DESCRIPTION The parties agree to comply with the terms and conditions of the following Exhibits which are by this reference made a part of the agreement. Exhibit A — Scope of Work Page(s): 21 Exhibit A — Attachments Page(s): 2 Exhibit B — Budget Page(s): 27 Exhibit B — Attachments Page(s): 0 Exhibit C — General Terms and Conditions Page(s): 33 Exhibit C — Attachments Page(s): 4 Exhibit D - Contacts Page(s): 1 $ 1,500,000 $ 8101998 $ 2,310,998 The undersigned parties have read the attachments to this agreement and will comply with the standards and requirements contained therein. CALIFORNIA ENERGY COMMISSION RECIPIENT AUTHORIZED SIGNATURE DATE AUTHORIZED SIGNATURE DATE NAME Rachel L. Grant Kiley NAME TITLE Contracts, Grants and Loans Office Manager TITLE CALIFORNIA ENERGY COMMISSION ADDRESS 1516 9th Street, MS 1, Sacramento, CA 95814 EXHIBIT C SECTION 1. 2. 3. 4. 5. 6. 7. 8. 9. 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 EXHIBIT C EPIC UC TERMS AND CONDITIONS TABLE OF CONTENTS PAGE NO. GrantAgreement....................................................................................................................2 Attachments and References...............................................................................................2 ApplicableLaws......................................................................................................................3 DueDiligence..........................................................................................................................3 Prod ucts................................................................................................................................... 3 Reports..................................................................................................................................... 3 Legal Statement on Reports and Products.......................................................................4 Amendments........................................................................................................................... 5 Contracting and Procurement Procedures........................................................................6 Permitsand Clearances........................................................................................................8 Equipment................................................................................................................................ 8 Termination.............................................................................................................................. 8 Traveland Per Diem..............................................................................................................9 Standard of Performance......................................................................................................9 Paymentof Funds................................................................................................................10 Recordkeeping, Cost Accounting, and Auditing.............................................................12 Indemnification......................................................................................................................15 Workers' Compensation Insurance...................................................................................15 Confidentiality........................................................................................................................15 Pre -Existing Intellectual Property, Independently Funded Intellectual Property, and Pre-existing Data........................................................................................17 IntellectualProperty.............................................................................................................19 Royalty Payments to the Energy Commission................................................................23 GeneralProvisions...............................................................................................................25 Certifications and Compliance...........................................................................................26 Definitions.............................................................................................................................. 29 EXHIBIT C I. TASK ACRONYMITERM LISTS A. Task List Task # CPR Task Name,Oil 9611" 1 General Project Tasks 2 Develop AEC Design and Planning Tool 3 Develop Smart Community Micro rid Energy Management Model 4 X Develop Case Studies on Various Integration Designs 5 Develop Master Community Design 6 Develop Financial and Business Models 7 Develop Outreach Strategy 8 Evaluation of Project Benefits 9 Technology/Knowledge Transfer Activities B. Acronym/Term List AEC Advanced Energy Community CAM Commission Agreement Manager CAO Commission Agreement Officer CPR Critical Project Review TAC Technical Advisory Committee II. PURPOSE OF AGREEMENT, PROBLEM/SOLUTION STATEMENT, AND GOALS AND OBJECTIVES A. Purpose of Agreement The purpose of this Agreement is to fund the development of extensible tools and to plan and design the integrated set of energy infrastructure and advanced energy technology approaches for accelerating the deployment of Advanced Energy Communities (AEC). B. Problem/ Solution Statement Problem There is lack of optimal integration approaches of smart grid technologies, combined cooling heating and power generation with high temperature fuel cells, energy storage technologies, and renewable energy utilization, for greater electricity reliability, lower costs, increased safety and Zero Net Energy future in the community level. Solution The Regents of the University of California (Recipient), on behalf of the Irvine campus, will develop tools, plan, design, and evaluate integrated sets of advanced energy technologies and solutions at a pilot/community scale and to validate its benefits to California Investor -Owned - Please see subtask 1.3 in Part III of the Scope of Work (General Project Tasks) for a description of Critical Project Review (CPR) Meetings. EXHIBIT C Utilities ratepayers and California Independent System Operator in various case studies and designs. To accelerate the deployment of AECs throughout the state, applied research is needed to integrate and optimize the promising new energy innovations into a unified system that efficiently interacts with the existing community electrical grid/infrastructure/buildings, serves various end -uses, obtains performance data for scale -up, and performs cost -benefit analyses for demonstrating economic feasibility. Master community design tools and approaches and integration and control strategies for innovative energy technologies will be advanced in this project, which will accelerate the development of and establish technical and economic readiness for deployment of AECs throughout the State. The tools will be extensible and the AEC designs will be replicable to other communities throughout California with transferable knowledge, technologies, and findings. C. Goals and Objectives of the Agreement Agreement Goals The goal of this Agreement is to: develop extensible tools and to plan and design the integrated set of energy infrastructure and advanced energy technology approaches to convert the community of Oak View into an AEC that can be easily replicable for use in similar communities. Ratepayer Benefits :2 This Agreement will result in the ratepayer benefits of greater electricity reliability, lower costs, and increased safety. The reliability is increased by 1) local renewable energy resources are being utilized in the AEC and could serve the critical loads inside the community without interruption, 2) providing mobility in case of an emergency through electric vehicle charging stations in adjacent communities, 3) the AEC could provide ancillary services to the grid during normal operations, and 4) the AEC could provide black -start capability, (the ability to keep the system running during a power outage). The AEC design will provide lower costs and economic benefit to the ratepayers by 1) reducing the transmission/distribution losses, 2) reducing the need for new transmission infrastructure and 3) providing a less expensive method in achieving the state's 50% renewable goal and environmental goals. Lastly, this replicable AEC design will also significantly reduce greenhouse gas emissions and criteria emissions compared to the grid as a whole, as it incorporates more renewables, leading to increased ratepayer safety and health benefits. Technological Advancement and Breakthroughs:' This Agreement will support the development and commercialization of technological advancements and breakthroughs that overcome barriers to the achievement of the State of California's statutory energy goals by: 1) maximize the use of the renewable energy sources in the community, 2) help mitigate the increasing renewable intermittency impact on the local utility grid, 3) reduce the emissions from the community, and 4) improve the grid reliability and resiliency from community level. This Agreement will support development and commercialization of technological advancements that overcome barriers to achieving the state's increase use of renewable energy goal. This Agreement will advance the integration of emerging and proven green energy technologies, with 2 California Public Resources Code, Section 25711.5(a) requires projects funded by the Electric Program Investment Charge (EPIC) to result in ratepayer benefits. The California Public Utilities Commission, which established the EPIC in 2011, defines ratepayer benefits as greater reliability, lower costs, and increased safety (See CPUC "Phase 2" Decision 12-05-037 at page 19, May 24, 2012, http://docs.cpuc.ca.gov/PublishedDocs/WORD PDF/FINAL DECISION/167664.PDF). 3 California Public Resources Code, Section 25711.5(a) also requires EPIC -funded projects to lead to technological advancement and breakthroughs to overcome barriers that prevent the achievement of the state's statutory and energy goals. EXHIBIT C various end -uses in the community scale. The knowledge gained from the integration of technologies with the end -uses will be valuable to communities throughout California. Agreement Objectives The objectives of this Agreement are to: • Develop and establish an AEC Design and Planning Tool to provide insights and recommendations on various integration and deployment options for the Oak View community, • Develop and establish a Smart Community Microgrid Energy Management Model that can simulate and evaluate the impacts and performance characteristics of the suite of clean energy technologies and systems that will be implemented in the AECs, • Carry out case studies to evaluate various designs and integration strategies; the design effort will include, but not be limited to, combinations of Energy Efficiency Measures, supplemental local renewable energy sources, energy storage systems, novel uses of the natural gas system, clean power generation systems with combined cooling, heating and power, and Smart -grid technologies that will be evaluated for the best value in terms of economic, environmental and technical performance, • Propose a Master Community Design for the Oak View community from the case studies, and establish a Master Community Design for a generic community, • Develop financial and business models for AEC design and develop a market facilitation plan, • Develop an outreach strategy for educating the building industry, utilities, government agencies, communities and other interested parties regarding the benefits of using an integrated set of advanced energy technologies to revitalize and energize a community, make it an AEC, and produce jobs and educational benefits. EXHIBIT C III. TASK 1 GENERAL PROJECT TASKS PRODUCTS Subtask 1.1 Products The goal of this subtask is to establish the requirements for submitting project products (e.g., reports, summaries, plans, and presentation materials). Unless otherwise specified by the Commission Agreement Manager (CAM), the Recipient must deliver products as required below by the dates listed in the Project Schedule (Part V). Products that require a draft version are indicated by marking "(draft and final)" after the product name in the "Products" section of the task/subtask. If "(draft and final)" does not appear after the product name, only a final version of the product is required. With respect to due dates within this Scope of Work, "days" means working days. The Recipient shall: For products that require a draft version, including the Final Report Outline and Final Report • Submit all draft products to the CAM for review and comment in accordance with the Project Schedule (Part V). The CAM will provide written comments to the Recipient on the draft product within 15 days of receipt, unless otherwise specified in the task/subtask for which the product is required. • Consider incorporating all CAM comments into the final product. If the Recipient disagrees with any comment, provide a written response explaining why the comment was not incorporated into the final product. Submit the revised product and responses to comments within 10 days of notice by the CAM, unless the CAM specifies a longer time period, or approves a request for additional time. For products that require a final version only • Submit the product to the CAM for acceptance. The CAM may request minor revisions or explanations prior to acceptance. For all products • Submit all data and documents required as products in accordance with the following: Instructions for Submitting Electronic Files and Developing Software: o Electronic File Format Submit all data and documents required as products under this Agreement in an electronic file format that is fully editable and compatible with the Energy Commission's software and Microsoft (MS) -operating computing platforms, or with any other format approved by the CAM. Deliver an electronic copy of the full text of any Agreement data and documents in a format specified by the CAM, such as memory stick or CD-ROM. The following describes the accepted formats for electronic data and documents provided to the Energy Commission as products under this Agreement, and establishes the software versions that will be required to review and approve all software products: EXHIBIT C — Data sets will be in MS Access or MS Excel file format (version 2007 or later), or any other format approved by the CAM. — Text documents will be in MS Word file format, version 2007 or later. — Documents intended for public distribution will be in PDF file format. The Recipient must also provide the native Microsoft file format. — Project management documents will be in Microsoft Word file format, version 2007 or later. o Software Application Development Use the following standard Application Architecture components in compatible versions for any software application development required by this Agreement (e.g., databases, models, modeling tools), unless the CAM approves other software applications such as open source programs: — Microsoft ASP. NET framework (version 3.5 and up). Recommend 4.0. — Microsoft Internet Information Services (IIS), (version 6 and up) Recommend 7.5. — Visual Studio. NET (version 2008 and up). Recommend 2010. — C# Programming Language with Presentation (UI), Business Object and Data Layers. — SQL (Structured Query Language). — Microsoft SQL Server 2008, Stored Procedures. Recommend 2008 R2. — Microsoft SQL Reporting Services. Recommend 2008 R2. — XML (external interfaces). Any exceptions to the Electronic File Format requirements above must be approved in writing by the CAM. The CAM will consult with the Energy Commission's Information Technology Services Branch to determine whether the exceptions are allowable. MEETINGS Subtask 1.2 Kick-off Meeting The goal of this subtask is to establish the lines of communication and procedures for implementing this Agreement. The Recipient shall: • Attend a "Kick-off' meeting with the CAM, the Commission Agreement Officer (CAO), and any other Energy Commission staff relevant to the Agreement. The Recipient will bring its Project Manager and any other individuals designated by the CAM to this meeting. The administrative and technical aspects of the Agreement will be discussed at the meeting. Prior to the meeting, the CAM will provide an agenda to all potential meeting participants. The meeting may take place in person or by electronic conferencing (e.g., WebEx), with approval of the CAM. The administrative portion of the meeting will include discussion of the following: o Terms and conditions of the Agreement; o Administrative products (subtask 1.1); o CPR meetings (subtask 1.3); o Match fund documentation (subtask 1.7); o Permit documentation (subtask 1.8); EXHIBIT C o Subcontracts (subtask 1.9); and o Any other relevant topics. The technical portion of the meeting will include discussion of the following: o The CAM's expectations for accomplishing tasks described in the Scope of Work; o An updated Project Schedule; o Technical products (subtask 1.1); o Progress reports and invoices (subtask 1.5); o Final Report (subtask 1.6); o Technical Advisory Committee meetings (subtasks 1.10 and 1.11); and o Any other relevant topics. Provide an Updated Project Schedule, List of Match Funds, and List of Permits, as needed to reflect any changes in the documents. The CAM shall: • Designate the date and location of the meeting. • Send the Recipient a Kick-off Meeting Agenda. Recipient Products: • Updated Project Schedule (if applicable) • Updated List of Match Funds (if applicable) • Updated List of Permits (if applicable) CAM Product: • Kick-off Meeting Agenda Subtask 1.3 Critical Project Review (CPR) Meetings The goal of this subtask is to determine if the project should continue to receive Energy Commission funding, and if so whether any modifications must be made to the tasks, products, schedule, or budget. CPR meetings provide the opportunity for frank discussions between the Energy Commission and the Recipient. As determined by the CAM, discussions may include project status, challenges, successes, advisory group findings and recommendations, final report preparation, and progress on technical transfer and production readiness activities (if applicable). Participants will include the CAM and the Recipient, and may include the CAO and any other individuals selected by the CAM to provide support to the Energy Commission. CPR meetings generally take place at key, predetermined points in the Agreement, as determined by the CAM and as shown in the Task List on page 1 of this Exhibit. However, the CAM may schedule additional CPR meetings as necessary. The budget will be reallocated to cover the additional costs borne by the Recipient, but the overall Agreement amount will not increase. CPR meetings generally take place at the Energy Commission, but they may take place at another location, or may be conducted via electronic conferencing (e.g., WebEx) as determined by the CAM. The Recipient shall: • Prepare a CPR Report for each CPR meeting that: (1) discusses the progress of the Agreement toward achieving its goals and objectives; and (2) includes recommendations and conclusions regarding continued work on the project. EXHIBIT C Submit the CPR Report along with any other Task Products that correspond to the technical task for which the CPR meeting is required (i.e., if a CPR meeting is required for Task 2, submit the Task 2 products along with the CPR Report). Attend the CPR meeting. Present the CPR Report and any other required information at each CPR meeting. The CAM shall: • Determine the location, date, and time of each CPR meeting with the Recipient's input. • Send the Recipient a CPR Agenda and a List of Expected CPR Participants in advance of the CPR meeting. If applicable, the agenda will include a discussion of match funding and permits. • Conduct and make a record of each CPR meeting. Provide the Recipient with a Schedule for Providing a Progress Determination on continuation of the project. • Determine whether to continue the project, and if so whether modifications are needed to the tasks, schedule, products, or budget for the remainder of the Agreement. If the CAM concludes that satisfactory progress is not being made, this conclusion will be referred to the Deputy Director of the Energy Research and Development Division. • Provide the Recipient with a Progress Determination on continuation of the project, in accordance with the schedule. The Progress Determination may include a requirement that the Recipient revise one or more products. Recipient Products: • CPR Report(s) • Task Products (draft and/or final as specified in the task) CAM Products: • CPR Agenda • List of Expected CPR Participants • Schedule for Providing a Progress Determination • Progress Determination Subtask 1.4 Final Meeting The goal of this subtask is to complete the closeout of this Agreement. The Recipient shall: • Meet with Energy Commission staff to present project findings, conclusions, and recommendations. The final meeting must be completed during the closeout of this Agreement. This meeting will be attended by the Recipient and CAM, at a minimum. The meeting may occur in person or by electronic conferencing (e.g., WebEx), with approval of the CAM. The technical and administrative aspects of Agreement closeout will be discussed at the meeting, which may be divided into two separate meetings at the CAM's discretion. o The technical portion of the meeting will involve the presentation of findings, conclusions, and recommended next steps (if any) for the Agreement. The CAM will determine the appropriate meeting participants. o The administrative portion of the meeting will involve a discussion with the CAM and the CAO of the following Agreement closeout items: — Disposition of any state-owned equipment. EXHIBIT C — Need to file a Uniform Commercial Code Financing Statement (Form UCC-1) regarding the Energy Commission's interest in patented technology. — The Energy Commission's request for specific "generated" data (not already provided in Agreement products). — Need to document the Recipient's disclosure of "subject inventions" developed under the Agreement. — "Surviving" Agreement provisions such as repayment provisions and confidential products. — Final invoicing and release of retention. • Prepare a Final Meeting Agreement Summary that documents any agreement made between the Recipient and Commission staff during the meeting. • Prepare a Schedule for Completing Agreement Closeout Activities. • Provide All Draft and Final Written Products on a CD-ROM or USB memory stick, organized by the tasks in the Agreement. Products: • Final Meeting Agreement Summary (if applicable) • Schedule for Completing Agreement Closeout Activities • All Draft and Final Written Products EXHIBIT C REPORTS AND,INVO/CES �.:5,,.711 Subtask 1.5 Progress Reports and Invoices The goals of this subtask are to: (1) periodically verify that satisfactory and continued progress is made towards achieving the project objectives of this Agreement; and (2) ensure that invoices contain all required information and are submitted in the appropriate format. The Recipient shall: • Submit a monthly Progress Report to the CAM. Each progress report must: o Summarize progress made on all Agreement activities as specified in the scope of work for the preceding month, including accomplishments, problems, milestones, products, schedule, fiscal status, and an assessment of the ability to complete the Agreement within the current budget and any anticipated cost overruns. See the Progress Report Format Attachment for the recommended specifications. • Submit a monthly or quarterly Invoice that follows the instructions in the "Payment of Funds" section of the terms and conditions, including a financial report on Match Fund and in -state expenditures. Products: • Progress Reports • Invoices Subtask 1.6 Final Report The goal of this subtask is to prepare a comprehensive Final Report that describes the original purpose, approach, results, and conclusions of the work performed under this Agreement. The CAM will review and approve the Final Report, which will be due at least two months before the Agreement end date. When creating the Final Report Outline and the Final Report, the Recipient must use a Style Manual provided by the CAM. Subtask 1.6.1 Final Report Outline The Recipient shall: • Prepare a Final Report Outline in accordance with the Style Manual provided by the CAM. (See Task 1.1 for requirements for draft and final products.) Recipient Products: • Final Report Outline (draft and final) CAM Product: • Style Manual • Comments on Draft Final Report Outline • Approval of Final Report Outline EXHIBIT C Subtask 1.6.2 Final Report The Recipient shall: • Prepare a Final Report for this Agreement in accordance with the approved Final Report Outline, Style Manual, and Final Report Template provided by the CAM with the following considerations: o Ensure that the report includes the following items, in the following order: — Cover page (required) — Credits page on the reverse side of cover with legal disclaimer (required) — Acknowledgements page (optional) — Preface (required) — Abstract, keywords, and citation page (required) — Table of Contents (required, followed by List of Figures and List of Tables, if needed) — Executive summary (required) — Body of the report (required) — References (if applicable) — Glossary/Acronyms (If more than 10 acronyms or abbreviations are used, it is required.) — Bibliography (if applicable) — Appendices (if applicable) (Create a separate volume if very large.) — Attachments (if applicable) o Ensure that the document is written in the third person. o Ensure that the Executive Summary is understandable to the lay public. — Briefly summarize the completed work. Succinctly describe the project results and whether or not the project goals were accomplished. — Identify which specific ratepayers can benefit from the project results and how they can achieve the benefits. — If it's necessary to use a technical term in the Executive Summary, provide a brief definition or explanation when the technical term is first used. o Follow the Style Guide format requirements for headings, figures/tables, citations, and acronyms/abbreviations. o Ensure that the document omits subjective comments and opinions. However, recommendations in the conclusion of the report are allowed. o Include a brief description of the project results in the Abstract. • Submit a draft of the report to the CAM for review and comment. The CAM will provide written comments to the Recipient on the draft product within 15 days of receipt. • Consider incorporating all CAM comments into the Final Report. If the Recipient disagrees with any comment, provide a written response explaining why the comment was not incorporated into the final product. • Submit the revised Final Report and responses to comments within 10 days of notice by the CAM, unless the CAM specifies a longer time period or approves a request for additional time. • Submit one bound copy of the Final Report to the CAM along with Written Responses to Comments on the Draft Final Report. EXHIBIT C Products: • Final Report (draft and final) • Written Responses to Comments on the Draft Final Report CAM Product: • Written Comments on the Draft Final Report MATCH�FUNDS, PERMITS, AND SUBCONTRACTS Subtask 1.7 Match Funds The goal of this subtask is to ensure that the Recipient obtains any match funds planned for this Agreement and applies them to the Agreement during the Agreement term. While the costs to obtain and document match funds are not reimbursable under this Agreement, the Recipient may spend match funds for this task. The Recipient may only spend match funds during the Agreement term, either concurrently or prior to the use of Energy Commission funds. Match funds must be identified in writing, and the Recipient must obtain any associated commitments before incurring any costs for which the Recipient will request reimbursement. The Recipient shall: • Prepare a Match Funds Status Letter that documents the match funds committed to this Agreement. If no match funds were part of the proposal that led to the Energy Commission awarding this Agreement and none have been identified at the time this Agreement starts, then state this in the letter. If match funds were a part of the proposal that led to the Energy Commission awarding this Agreement, then provide in the letter: o A list of the match funds that identifies: — The amount of cash match funds, their source(s) (including a contact name, address, and telephone number), and the task(s) to which the match funds will be applied. — The amount of each in -kind contribution, a description of the contribution type (e.g., property, services), the documented market or book value, the source (including a contact name, address, and telephone number), and the task(s) to which the match funds will be applied. If the in -kind contribution is equipment or other tangible or real property, the Recipient must identify its owner and provide a contact name, address, telephone number, and the address where the property is located. o A copy of a letter of commitment from an authorized representative of each source of match funding that the funds or contributions have been secured. At the Kick-off meeting, discuss match funds and the impact on the project if they are significantly reduced or not obtained as committed. If applicable, match funds will be included as a line item in the progress reports and will be a topic at CPR meetings. Provide a Supplemental Match Funds Notification Letter to the CAM of receipt of additional match funds. Provide a Match Funds Reduction Notification Letter to the CAM if existing match funds are reduced during the course of the Agreement. Reduction of match funds may trigger a CPR meeting. EXHIBIT C Products: • Match Funds Status Letter • Supplemental Match Funds Notification Letter (if applicable) • Match Funds Reduction Notification Letter (if applicable) Subtask 1.8 Permits The goal of this subtask is to obtain all permits required for work completed under this Agreement in advance of the date they are needed to keep the Agreement schedule on track. Permit costs and the expenses associated with obtaining permits are not reimbursable under this Agreement, with the exception of costs incurred by University of California recipients. Permits must be identified and obtained before the Recipient may incur any costs related to the use of the permit(s) for which the Recipient will request reimbursement. The Recipient shall: • Prepare a Permit Status Letter that documents the permits required to conduct this Agreement. If no permits are required at the start of this Agreement, then state this in the letter. If permits will be required during the course of the Agreement, provide in the letter: o A list of the permits that identifies: (1) the type of permit; and (2) the name, address, and telephone number of the permitting jurisdictions or lead agencies. o The schedule the Recipient will follow in applying for and obtaining the permits. The list of permits and the schedule for obtaining them will be discussed at the Kick-off meeting (subtask 1.2), and a timetable for submitting the updated list, schedule, and copies of the permits will be developed. The impact on the project if the permits are not obtained in a timely fashion or are denied will also be discussed. If applicable, permits will be included as a line item in progress reports and will be a topic at CPR meetings. If during the course of the Agreement additional permits become necessary, then provide the CAM with an Updated List of Permits (including the appropriate information on each permit) and an Updated Schedule for Acquiring Permits. Send the CAM a Copy of Each Approved Permit. If during the course of the Agreement permits are not obtained on time or are denied, notify the CAM within 5 days. Either of these events may trigger a CPR meeting. Products: • Permit Status Letter • Updated List of Permits (if applicable) • Updated Schedule for Acquiring Permits (if applicable) • Copy of each Approved Permit (if applicable) Subtask 1.9 Subcontracts The goals of this subtask are to: (1) procure subcontracts required to carry out the tasks under this Agreement; and (2) ensure that the subcontracts are consistent with the terms and conditions of this Agreement. The Recipient shall: • Manage and coordinate subcontractor activities in accordance with the requirements of this Agreement. • Incorporate this Agreement by reference into each subcontract. EXHIBIT C • Include any required Energy Commission flow -down provisions in each subcontract, in addition to a statement that the terms of this Agreement will prevail if they conflict with the subcontract terms. • If required by the CAM, submit a draft of each Subcontract required to conduct the work under this Agreement. • Submit a final copy of the executed subcontract. • Notify and receive written approval from the CAM prior to adding any new subcontractors (see the discussion of subcontractor additions in the terms and conditions). Products: • Subcontracts (draft if required by the CAM) TECHNICAL ADfVISORY COMMITTEE E x` Subtask 1.10 Technical Advisory Committee (TAC) The goal of this subtask is to create an advisory committee for this Agreement. The TAC should be composed of diverse professionals. The composition will vary depending on interest, availability, and need. TAC members will serve at the CAM's discretion. The purpose of the TAC is to: • Provide guidance in project direction. The guidance may include scope and methodologies, timing, and coordination with other projects. The guidance may be based on: o Technical area expertise; o Knowledge of market applications; or o Linkages between the agreement work and other past, present, or future projects (both public and private sectors) that TAC members are aware of in a particular area. • Review products and provide recommendations for needed product adjustments, refinements, or enhancements. • Evaluate the tangible benefits of the project to the state of California, and provide recommendations as needed to enhance the benefits. • Provide recommendations regarding information dissemination, market pathways, or commercialization strategies relevant to the project products. The TAC may be composed of qualified professionals spanning the following types of disciplines: • Researchers knowledgeable about the project subject matter; • Members of trades that will apply the results of the project (e.g., designers, engineers, architects, contractors, and trade representatives); • Public interest market transformation implementers; • Product developers relevant to the project; • U.S. Department of Energy research managers, or experts from other federal or state agencies relevant to the project; • Public interest environmental groups; • Utility representatives; • Air district staff; and • Members of relevant technical society committees. EXHIBIT C The Recipient shall: • Prepare a List of Potential TAC Members that includes the names, companies, physical and electronic addresses, and phone numbers of potential members. The list will be discussed at the Kick-off meeting, and a schedule for recruiting members and holding the first TAC meeting will be developed. • Recruit TAC members. Ensure that each individual understands member obligations and the TAC meeting schedule developed in subtask 1.11. • Prepare a List of TAC Members once all TAC members have committed to serving on the TAC. • Submit Documentation of TAC Member Commitment (such as Letters of Acceptance) from each TAC member. Products: • List of Potential TAC Members • List of TAC Members • Documentation of TAC Member Commitment Subtask 1.11 TAC Meetings The goal of this subtask is for the TAC to provide strategic guidance for the project by participating in regular meetings, which may be held via teleconference. The Recipient shall: • Discuss the TAC meeting schedule with the CAM at the Kick-off meeting. Determine the number and location of meetings (in -person and via teleconference) in consultation with the CAM. • Prepare a TAC Meeting Schedule that will be presented to the TAC members during recruiting. Revise the schedule after the first TAC meeting to incorporate meeting comments. • Prepare a TAC Meeting Agenda and TAC Meeting Back-up Materials for each TAC meeting. • Organize and lead TAC meetings in accordance with the TAC Meeting Schedule. Changes to the schedule must be pre -approved in writing by the CAM. • Prepare TAC Meeting Summaries that include any recommended resolutions of major TAC issues. Products: • TAC Meeting Schedule (draft and final) • TAC Meeting Agendas (draft and final) • TAC Meeting Back-up Materials • TAC Meeting Summaries EXHIBIT C IV. TECHNICAL TASKS Products that require a draft version are indicated by marking "(draft and final)" after the product name in the "Products" section of the task/subtask. If "(draft and final)" does not appear after the product name, only a final version of the product is required. Subtask 1.1 (Products) describes the procedure for submitting products to the CAM. TASK 2 DEVELOP AEC DESIGN AND PLANNING TOOL The goal of this task is to develop an AEC Design and Planning Tool. The Recipient shall: • Conduct site investigations throughout the Oak View community to explore opportunities for multiple energy efficiency, control and generation technologies, analyze site constraints, opportunities and needs, meet and interview stakeholders. • Identify key building- and community -scale energy systems and strategies that could be employed in the AEC. Potential examples include: o Advanced HVAC strategies and controls. o Advanced lighting and controls. o Zero energy buildings. o Recovering waste heat from commercial and industrial buildings for use in residential heating. o Waste -to -energy district thermal systems. o Rooftop/community solar. • Develop various Building Energy Simulation Tools based on the possible building- and community -scale energy systems and strategies identified earlier in this task and submit to CAM for approval. • Develop the AEC Design and Planning Tool that will provide insights and recommendations on various integration and deployment options for the community. o Establish a baseline case from inputs including basic information on the community. o Include potential clean energy technology and integration strategy options. • Develop a draft System Integration Report which will include: results from the work performed earlier in this task, concepts for integration of the technologies, results from building and built environment simulations, and an overall draft design of the integrated suite of advanced energy technologies suggested for the community. • Submit the draft System Integration Report to key stakeholders, and CAM for review and feedback. • Revise the draft report based on feedback from key stakeholders, and CAM and submit a final System Integration Report to the CAM for approval. Products: • Building Energy Simulation Tools • AEC Design and Planning Tool • System Integration Report (draft and final) TASK 3 DEVELOP SMART COMMUNITY MICROGRID ENERGY MANAGEMENT MODEL The goal of this task is to simulate and evaluate the impact and performance characteristics of the suite of clean energy technologies and systems that will be implemented in the AEC. The Recipient shall: EXHIBIT C Develop the Smart Community Microgrid Energy Management Model that will simulate and evaluate the impact and performance characteristics of the set of clean energy technologies that will be implemented in the AEC. The model will also evaluate multiple energy and resources dispatch control approaches and support the development of optimized control strategies in the AEC. Using the model developed earlier in the task, conduct building energy modeling and utilities analysis to: o Support overall energy needs analysis (current and future) o Perform risk/sensitivity analysis for load growth and fluctuations (e.g., weather, building usage changes, technology adoption, etc.) o Perform energy efficiency measure optimization, analyzing multiple energy efficiency strategies in concert with production and storage solutions for microgrid optimization from a control and first cost basis. o Perform demand management analysis, in concert with the energy efficiency analysis, to support effective active control of the microgrid with usage, production, and storage constraints on multiple time scales. Develop and submit to the key stakeholders, TAC, and CAM, a draft Model Development Report, including: o Discussion of the different modeling and analyses performed earlier in the task, and results from this work. o Recommended set of clean energy technologies. o Summary of control and management strategies investigated. o Optimized control and management strategies being recommended for the AEC. Prepare a Summary of the Draft Model Development Report presentation slide deck to present to the TAC, key stakeholders, and CAM at a TAC Meeting. Revise the report to incorporate feedback from the stakeholders, TAC, and CAM, and submit a final Model Development Report to the CAM for approval. Products: • Smart Community Microgrid Energy Management Model • Model Development Report (draft and final) • Summary of the Draft Model Development Report presentation slide deck TASK 4 DEVELOP CASE STUDIES ON VARIOUS INTEGRATION DESIGNS The goal of this task is to develop an optimized roadmap for the AEC, both technically and financially. Case studies will be developed to evaluate various designs and integration strategies for the AEC. The Recipient shall: • Develop AEC case studies with a combination of hypothetical energy efficiency measures, supplemental local renewable energy sources, energy storage systems, electric and gas utility systems, clean power generation system with combined heat and power, and smart -grid technologies, based on the recommendations and results gained in Task 3. The case studies will: o Quantify the economic and environmental benefits and technical performance. o Identify technical challenges encountered in each case. o Document any prospective regulatory, administrative, planning and permitting issues during the process. EXHIBIT C • Develop a technology and infrastructure plan for the AEC case studies, including: (1) microgrid controls platform, (2) communications infrastructure, (3) building controls integration, and (4) measurement and verification and metering infrastructure. • Draft an AEC Case Study Report, including, but not limited to: o A description of each of the case studies performed earlier in this task. o Delineation of the benefits and technical performance. o Summary of any prospective technical, regulatory, or administrative challenges encountered. o Summary of the planning and permitting process for each case study. o The technology and infrastructure plan for the AEC case studies. • Submit the draft AEC Case Study Report to the TAC, key stakeholders, and the CAM for review and comment. • Revise the report based on stakeholder, TAC, and AEC Case Study Report to the CAM for approval. • Prepare a CPR Report in accordance with subtask 1 • Participate in a CPR meeting. Products: AEC Case Study Report (draft and final) CPR Report CAM feedback, and submit a final 3 (CPR Meetings). TASK 5 DEVELOP MASTER COMMUNITY DESIGN The goal of this task is to develop a master community design for both the Oak View AEC, as well as a more generic design to be used as a model for duplication in other communities. The Recipient shall: • Develop a draft Oak View AEC Master Community Design report for the community based upon the findings from the case studies. The design shall include, but not be limited to: o Descriptions of the proposed location(s) for the development. o Tentative maps, engineering designs of proposed buildings, streets, and community spaces. o Energy technologies to be deployed, any water conservation features and water saving technologies. o Potential interconnection sites and advanced energy infrastructure. o Technology deployment and phasing, procurement, funding and operations strategies. o How these elements are combined in a systems approach. • Submit a draft of the Oak View AEC Master Community Design report to the key stakeholders, TAC, and CAM for review and comments. • Prepare a Summary of the Draft Oak View AEC Master Community Design Report presentation slide deck to present to the key stakeholders, TAC, and CAM at a TAC Meeting. • Revise the Oak View AEC Master Community Design report based on stakeholder, TAC, and CAM feedback, and submit a final Oak View Master Community Design report to the CAM for approval. • Develop a generic Master Community Design report to serve as a model for other communities. EXHIBIT C Products: • Oak View AEC Master Community Design report (draft and final) • Summary of the Draft Oak View AEC Master Community Design presentation slide deck • Master Community Design report TASK 6 DEVELOP FINANCIAL AND BUSINESS MODELS The goal of this task is to develop financial and business model(s) for the Master Community Design that showcases innovative financing strategies that can help make the AEC more financially attractive in comparison with other similar community developments without advanced energy attributes. These models will explore the use of multiple low -interest financing mechanisms that are available to the City, as well as clean energy funding, that the City may garner from the air quality management district. The Recipient shall: • Develop financial and business model(s) for the City to consider for implementation of the AEC based on the case studies developed in Task 4, and the master design recommendations provided in Task 5. A combination of structures and finance sources will be examined to appropriately capture the flow of risks and benefits to all stakeholders in the community, including the utilities, local government, residents, business owners, etc. Multiple financial elements that will be assessed shall include, but not be limited to: o Private and public debt financing. o Equipment leases. o Power Purchase Agreements. o Property Assessed Clean Energy financing. o On -bill repayment mechanisms. o Insurance. • Collaborate with key project stakeholders (including the City), as well as financial institutions, to assess feasibility, risk, and total costs. • Develop a draft AEC Financial and Business Model Report to include, but not be limited to, a discussion on the models developed and results from earlier subtasks, as well as recommendations. • Submit the draft AEC Financial and Business Model Report to key stakeholders (including the City), the TAC, and the CAM for review and feedback. Revise the draft AEC Financial and Business Model Report based on feedback from the stakeholders, TAC, and CAM, and submit a final report to the CAM. • Upon feedback from the City as to which financial and business model they prefer, prepare and submit to the CAM, an AEC Financial and Business Model. Products: • AEC Financial and Business Model Report (draft and final) • AEC Financial and Business Model TASK 7 DEVELOP OUTREACH STRATEGY The goal of this task is to educate the building industry, government agencies, other communities and other interested parties on the benefits of using an integrated set of advanced energy technologies in an AEC to revitalize a community and produce educational benefits. EXHIBIT C The Recipient shall: • Develop outreach strategies that produce educational benefits to key stakeholders and interested parties, on implementing an AEC. • Develop an Outreach Strategy Repot that provides a plan that is specific to providing educational information about the benefits of an AEC for Huntington Beach and other communities throughout the state, and provide to the CAM for approval. • Implement the outreach and education in the community, according to the Outreach Strategy Report. • Summarize the activities conducted in earlier subtasks as part of the Outreach Strategy, in an Outreach Activity Repot and submit it to the CAM for approval. Products: • Outreach Strategy Report • Outreach Activity Report TASK 8 EVALUATION OF PROJECT BENEFITS The goal of this task is to report the benefits resulting from this project. The Recipient shall: • Complete three Project Benefits Questionnaires that correspond to three main intervals in the Agreement: (1) Kick-off Meeting Benefits Questionnaire; (2) Mid-term Benefits Questionnaire; and (3) Final Meeting Benefits Questionnaire. • Provide all key assumptions used to estimate projected benefits, including targeted market sector (e.g., population and geographic location), projected market penetration, baseline and projected energy use and cost, operating conditions, and emission reduction calculations. Examples of information that may be requested in the questionnaires include: o For Product Development Projects and Project Demonstrations: — Published documents, including date, title, and periodical name. — Estimated or actual energy and cost savings, and estimated statewide energy savings once market potential has been realized. Identify all assumptions used in the estimates. — Greenhouse gas and criteria emissions reductions. — Other non -energy benefits such as reliability, public safety, lower operational cost, environmental improvement, indoor environmental quality, and societal benefits. — Data on potential job creation, market potential, economic development, and increased state revenue as a result of the project. — A discussion of project product downloads from websites, and publications in technical journals. — A comparison of project expectations and performance. Discuss whether the goals and objectives of the Agreement have been met and what improvements are needed, if any. o Additional Information for Product Development Projects: Outcome of product development efforts, such copyrights and license agreements. EXHIBIT C — Units sold or projected to be sold in California and outside of California. — Total annual sales or projected annual sales (in dollars) of products developed under the Agreement. — Investment dollars/follow-on private funding as a result of Energy Commission funding. — Patent numbers and applications, along with dates and brief descriptions. o Additional Information for Product Demonstrations: — Outcome of demonstrations and status of technology. — Number of similar installations. — Jobs created/retained as a result of the Agreement. o For Information/Tools and Other Research Studies: — Outcome of project. — Published documents, including date, title, and periodical name. — A discussion of policy development. State if the project has been cited in government policy publications or technical journals, or has been used to inform regulatory bodies. — The number of website downloads. — An estimate of how the project information has affected energy use and cost, or have resulted in other non -energy benefits. — An estimate of energy and non -energy benefits. — Data on potential job creation, market potential, economic development, and increased state revenue as a result of project. — A discussion of project product downloads from websites, and publications in technical journals. — A comparison of project expectations and performance. Discuss whether the goals and objectives of the Agreement have been met and what improvements are needed, if any. • Respond to CAM questions regarding responses to the questionnaires. The Energy Commission may send the Recipient similar questionnaires after the Agreement term ends. Responses to these questionnaires will be voluntary. Products: • Kick-off Meeting Benefits Questionnaire • Mid-term Benefits Questionnaire • Final Meeting Benefits Questionnaire TASK 9 TECHNOLOGY/KNOWLEDGE TRANSFER ACTIVITIES The goal of this task is to develop a plan to make the knowledge gained, experimental results, and lessons learned available to the public and key decision makers. The Recipient shall: • Prepare an Initial Fact Sheet at start of the project that describes the project. Use the format provided by the CAM. EXHIBIT C • Prepare a Final Project Fact Sheet at the project's conclusion that discusses results. Use the format provided by the CAM. • Prepare a Technology/Knowledge Transfer Plan that includes: o An explanation of how the knowledge gained from the project will be made available to the public, including the targeted market sector and potential outreach to end users, utilities, regulatory agencies, and others. o A description of the intended use(s) for and users of the project results. o Published documents, including date, title, and periodical name. o Copies of documents, fact sheets, journal articles, press releases, and other documents prepared for public dissemination. These documents must include the Legal Notice required in the terms and conditions. Indicate where and when the documents were disseminated. o A discussion of policy development. State if project has been or will be cited in government policy publications, or used to inform regulatory bodies. o The number of website downloads or public requests for project results. o Additional areas as determined by the CAM. • Conduct technology transfer activities in accordance with the Technology/Knowledge Transfer Plan. These activities will be reported in the Progress Reports. • When directed by the CAM, develop Presentation Materials for an Energy Commission - sponsored conference/workshop(s) on the project. • When directed by the CAM, participate in annual EPIC symposium(s) sponsored by the California Energy Commission. • Provide at least (6) six High Quality Digital Photographs (minimum resolution of 1300x500 pixels in landscape ratio) of pre and post technology installation at the project sites or related project photographs. • Prepare a Technology/Knowledge Transfer Report on technology transfer activities conducted during the project. Products: • Initial Fact Sheet (draft and final) • Final Project Fact Sheet (draft and final) • Presentation Materials (draft and final) • High Quality Digital Photographs • Technology/Knowledge Transfer Plan (draft and final) • Technology/Knowledge Transfer Report (draft and final) V. PROJECT SCHEDULE Please see the attached Excel spreadsheet. EXHIBIT C Agreement Term: 06-15-2016 to 07-31-2018 Within this Scope of Work, "days" means working days. Changes to due dates must be approved in writing by the CAM, and may require approval by the Energy Commission's Executive Director or his/her designee. Task/ Subtask # Task/Subtask Name Meeting;Name Product(s) 01 Due Date ; i �' 1 General Project Tasks 1.1 Products 1.2 Kick-off Meeting Kick-off Meetings ; 10/10/2016 Updated Project Schedule (if applicable) 7 days after determination of the need to update the documents Updated List of Match Funds (if applicable) Updated List of Permits (if applicable) CAM Product y Kick-off Meeting Agenda 7 days prior to the kick-off meeting 1.3 CPR Meeting CPR Meeting,#;1 `,., `1 10/25/2017 CPR Report 15 days prior to the CPR Task Products meeting CAM Products. CPR Agenda 5 days prior to the CPR List of Expected CPR Participants meeting Schedule for Providing a Progress Determination 15 days after CPR meeting Progress Determination As indicated in the Schedule for Providing a Progress Determination 1.4 Final Meeting Final Meetirig; 6/10/2018 Final Meeting Agreement Summary (if applicable) Schedule for Completing Agreement 7 days after the final meeting Closeout Activities All Draft and Final Written Products 1.5 Progress Reports and Progress Reports 10 days after the first of each Invoices month Invoices 10 days after the first of each month or quarter 1.6.1 Final Report Outline Draft Final Report Outline 1/31/2018 Final Report Outline 1 week following suggested edits from CAM on Draft Final Report Outline CAM Product Style Manual At least 2 months prior to the final report outline due date Comments on Draft Final Report 10 days after receipt of the Outline Draft Final Report Outline Approval of Final Report Outline 10 days after receipt of the Final Report Outline 1.6.2 Final Report Draft Final Report 3/30/2018 Final Report 5/31/2018 CAM Products:".: Comments on Draft Final Report 30 days after receipt of the Outline Draft Final Report 1.7 Match Funds Match Funds Status Letter 2 days prior to the kick-off meeting Supplemental Match Funds Notification 10 days after receipt of Letter(if applicable) additional match funds Match Funds Reduction Notification 10 days after any reduction of Letter (if applicable) match funds EXHIBIT C 11.8 1 Permits 1.9 Subcontracts 1.10 Technical Advisory Committee (TAC) 1.11 TAC Meetinas 12 13 Develop AEC Design and Planning Tool Develop Smart Community Microgrid Energy Management Model TAC Meeting #1 Permit Status Letter Updated List of Permits (if applicable) Updated Schedule for Acquiring Permits (if applicable) Copy of Each Approved Permit (if applicable) Draft Subcontracts (if required by the List of Potential TAC Members List of TAC Members Documentation of TAC Member TAC Meeting Summaries Building Energy Simulation Tool AEC Design and Planning Tool Draft System Integration Report Final System Integration Report Smart Community Microgrid Energy Management Model Draft Model Development Report Final Model Development Report 2 days prior to the kick-off 10 days after determination of the need for a new permit 7 days after receipt of each permit As determined by the CAM 2 days prior to the kick-off meeting 7 days after finalization of the TAC 7 days after receipt of the documentation 7/31 /2017 1 /25/2018 20 days after the kickoff meeting 10 days after the first TAC meeting 20 days prior to each TAC meeting 7 days prior to each TAC meeting 10 days after each TAC 7/10/2017 7/10/2017 8131 /2017 Summary of the Draft Model Development Report presentation slide deck 2 days prior to the 1 st TAC Meeting 4 Develop Case Studies on CPR Meeting Draft AEC Case Study Report 10/10/2017 Various Integration Designs Final AEC Case Study Report 11/30/2017 5 Develop Master Community Draft Oak View AEC Master Community 1/10/2018 Design Design Report Final Oak View AEC Master Community 3/15/2018 Design Report Summary of the Draft Oak View AEC 2 days prior to the 2nd TAC Master Community Design presentation Meeting slide deck Master Community Design Report 3/30/2018 6 Develop Financial and Draft AEC Financial and Business 3/15/2018 Business Models Model Report Final AEC Financial and Business 4/30/2018 Model Report AEC Financial and Business Model 4/30/2018 7 Develop Outreach Strategy Outreach Strategy Report 10/31/2017 Outreach Activity Report 5/31/2018 EXHIBIT C Evaluation of Project Benefits I (Kick-off Meeting Benefits Questionnaire 1 10/31/2016 Mid-term Benefits Questionnaire 7/31/2017 Final Meeting Benefits Questionnaire 513l/2018 EXHIBIT C 9 Technology/Knowledge Transfer Activities Draft Initial Fact Sheet 11/15/2016 Final Initial Fact Sheet 2 weeks after receipt of CAM feedback on Draft Initial Fact Sheet Draft Final Project Fact Sheet 4/2/2018 Final Project Fact Sheet 5/31/2018 Draft Presentation Materials 1 week before the scheduled meeting or outreach event, as directed by CAM Final Presentation Materials 2 days before the scheduled meeting or outreach event, as directed by CAM Hiqh Qualitv Diqital Photooranhs As directed by CAM Draft Technology/Knowledge Transfer 19/1/2017 Final Technology/Knowledge Transfer 2 weeks after receipt of CAM Plan feedback on Draft Technology/Knowledge Draft Technology/Knowledge Transfer 14/30/2018 Final Technology/Knowledge Transfer 15/31/2018 EXHIBIT C Funds Spent in CA The Regents of the University of Ca AN rUf1U5 JNUfll III %.,IA ie EXHIBIT C Category Budget Name of Organization National Renewable Energy Laboratory H Contractor/Recipient [J] Subcontractor ❑ Small Business [] Micro Business ❑ Disabled Veteran Business Enterprise Energy Cost Category CommissionMatch Share Total Reimbursable Share Direct Labor - 123,060- $ 104,005� 227;065 y$ 'Y$ Fringe Benefits .. $ 40;487 $ , WI 34;217 $ 74 704 Total Labor $ 163,547 $ 38,222Ov $ 301,769 Travel $ - $ , 8,900 Ate'; $ $900 Equipment $ $ y y N', 2_" $ _ Materials/Miscellaneous $� $ Subcontractors $ ,1 Total Other Direct Costs $ $8 900 $b 8,900 Indirect Costs $-; .: y186,453 $ 52,878 $ % ��239,331 Profit (not allowed for grant recipients)- z $. Total Indirect' and Profit $ 1$6453 $�� 52,878 $ 239,331 �350,000 Grand Totals $ $ ,. 200,000, $ ,.550,00,Q �J Amount of Funds Spent in CA $ Percentage of Funds Spent in CA ' 25% EXHIBIT C EXHIBIT C EPIC UC TERMS AND CONDITIONS 1. Grant Agreement This grant agreement (Agreement) between the California Energy Commission (Energy Commission, or Commission) and the Recipient is funded by the Electric Program Investment Charge (EPIC), an electricity ratepayer surcharge authorized by the California Public Utilities Commission (CPUC). Project refers to the entire effort undertaken and planned by the Recipient, including the work co -funded by the Commission. The project may coincide with or extend beyond the Agreement period. Project tasks refer to the work elements of the project. Typically, there are distinct projects tasks within the project being paid for by the Commission under this Agreement. This Agreement is comprised of the grant funding award, the Terms and Conditions, and all attachments. These Terms and Conditions are standard requirements for EPIC grant awards. The Energy Commission may impose special conditions in this grant Agreement which address the unique circumstances of this project. Special conditions that conflict with these standard provisions take precedence. Any special conditions are attached to this Agreement. All work and/or the expenditure of funds (Energy Commission -reimbursed and/or match share) must occur within the approved term of this Agreement. The Energy Commission cannot authorize any payments until all parties sign this Agreement. The start term of this Agreement is either the specified start term or the date the Energy Commission signs the Agreement, whichever is later. The Energy Commission will only sign the Agreement after the Recipient signs it and it has been approved at an Energy Commission Business Meeting. 2. Attachments and References The following are attached and hereby expressly incorporated into this Agreement. A. The funding solicitation for the project supported by this Agreement B. The Recipient's proposal submitted in response to the solicitation, but in the event of a conflict between the proposal and this Agreement, this Agreement prevails C. Confidentiality Exhibit (if applicable) D. Intellectual Property Exhibit (if applicable) E. Special Conditions (if applicable) The federal regulations identified below are incorporated by reference as part of this Agreement. These Terms and Conditions and any Special Conditions take precedence over the regulations: 2 CFR Part 200 (See cost principles in Subpart E, Sections 200.400 et seq. See procurement standards in Subpart D, Sections 200.317 et seq.) EXHIBIT C 3. Applicable Laws Recipient agrees to abide by all federal, state, and local laws and regulations applicable to the project even if they are not stated in this Agreement. Recipient also asserts that it follows the Information Practices Act ("IPA") as codified at California Civil Code sections 1798 et seq. To the extent that Recipient will collect or otherwise have access to Personal Information as defined in the IPA in carrying out the Scope of Work of this Agreement, Recipient will follow the requirements of the IPA. Subject to applicable IPA disclosure restrictions, other applicable pre-existing use and disclosure restrictions identified in Attachment 1, or any other provisions in this Agreement, including but not limited to Confidentiality, Recipient may provide the Commission access to Personal Information collected under this Agreement only for the purpose of verifying aspects of the Recipient's analysis. The Commission takes no ownership interest in or license to the Personal Information. 4. Due Diligence The Recipient is required to take timely actions which, taken collectively, move this project to completion. The Commission Agreement Manager will periodically evaluate the schedule for completion of Scope of Work tasks. If the Commission Agreement Manager determines (1) the Recipient is not being diligent in completing the tasks in the Scope of Work or (2) the time remaining in the funding award is insufficient to complete all project work tasks not later than the Agreement term date, the Project Manager shall consult with the Recipient to determine whether the tasks will be completed according to schedule. If completion cannot be completed on schedule or by a mutually agreeable extension in time, the Energy Commission may, without prejudice to any of its remedies, terminate this Agreement in accordance with the Termination provisions stated in Section 12. 5. Products Unless otherwise directed, draft copies of all Products identified in the Scope of Work shall be submitted to the Energy Commission's Accounting Office at the address below. The Accounting Office will forward Products to the Commission Agreement Manager for review and comment. The Recipient will submit an original and two copies of the final version of all Products to the Accounting Office. California Energy Commission Accounting Office 1516 Ninth Street, MS-2 Sacramento, CA 95814 6. Reports A. Submission of Reports All Reports will be submitted to the Accounting Office at the address listed in Section 5 above. The Commission Agreement Manager (CAM) will provide the reporting components, style, and formatting requirements to the Principal Investigator. 0:/CI1:31IN B. Progress Reports The Recipient shall prepare progress Reports on the schedule provided and in the manner and form specified in the Scope of Work. The Recipient shall prepare progress Reports, which summarize all grant activities conducted by the Recipient for the reporting period, including an assessment of the ability to complete the project within the current budget and any anticipated cost overruns. C. Final Reports The Recipient shall prepare a final Report outline, draft final Report and final Report on the schedule provided in the Scope of Work. The final Report shall describe the original purpose, approach, results and conclusions of the work done under this Agreement. The Payment Request for the final payment (including any retention) may only be submitted after the final Report is completed and the Commission Agreement Manager has verified that all work has been completed in accordance with the requirements of this Agreement. D. Rights in Reports The Energy Commission retains ownership and copyright rights in all Reports produced and delivered pursuant to this Agreement, including the right to grant others any or all copyright rights in such materials. The Energy Commission grants Recipient a fully paid -up, royalty -free, nonexclusive, nontransferable, nonsublicensable, irrevocable license to reproduce, prepare derivative works, distribute copies, perform publicly, and display publicly such Reports for educational and research purposes and to allow other educational and nonprofit institutions to do so for educational and research purposes. E. Failure to Comply with Reporting Requirements Failure to comply with the reporting requirements contained in this award will be considered a material noncompliance with the terms of the award. 7. Legal Statement on Reports and Products No Product or Report produced as a result of work funded by this program shall be represented to be endorsed by the Energy Commission, and all such Products or Reports shall include the following statement: LEGAL NOTICE EXHIBIT C This document was prepared as a result of work sponsored by the California Energy Commission. It does not necessarily represent the views of the Energy Commission, its employees, or the State of California. The Energy Commission, the State of California, its employees, contractors, and subcontractors make no warranty, express or implied, and assume no legal liability for the information in this document; nor does any party represent that the use of this information will not infringe upon privately owned rights. This report has not been approved or disapproved by the Energy Commission nor has the Energy Commission passed upon the accuracy of the information in this report. 8. Amendments A. Procedure for Requesting Changes The Recipient must submit a written request to the Commission Agreement Manager for any change to the Agreement. The request must include: A brief summary of the proposed change; ii. A brief summary of the reason(s) for the change; and iii. The revised section(s) of the Agreement, with changes made in underline/ strikeout format. B. Approval of Changes Certain changes to the Agreement (e.g., changes that increase the Agreement amount or substitute one Recipient for another) must be approved at a Commission business meeting or by the Executive Director (or his/her designee). Generally, changes that are not significant to the Agreement may be documented in a Letter of Agreement signed by both parties (electronic signatures are acceptable). See Attachment 2 for a sample Letter of Agreement. The Contract Agreement Manager or Contract Agreement Officer will provide the Recipient with guidance regarding the level of Commission approval required for a proposed change. C. Personnel or Subcontractor Changes All changes below require advance written approval by the Commission Agreement Manager, in addition to the appropriate level of Commission approval as described in subsection B. Replacement of Key Personnel, Subcontractors, and Vendors The Commission Agreement Manager must provide advance written approval of the replacement of Key Personnel, Key Subcontractors, and Key Vendors who are both identified in the Agreement and are critical to the outcome of the project, such as the Project Manager. ii. Assignment of New Personnel to an Existing Job Classification EXHIBIT C If the Recipient or a subcontractor seeks to assign new personnel who are critical to the outcome of the project to a job classification identified in Exhibit B, the Recipient or subcontractor must submit the individual's resume and proposed job classification and rate to the Commission Agreement Manager for approval. The proposed rate may not exceed the maximum rate identified for the job classification. Neither the Recipient nor any subcontractor may use the job classifications or rates of their subcontractors for personnel. iii. Promotion of Existing Personnel to an Existing Job Classification Recipient or subcontractor personnel that are identified in Exhibit B may be assigned to a higher -paying job classification identified in Exhibit B. iv. Addition of Subcontractors In order to add subcontractors to Exhibit B, the Commission Agreement Manager must submit a "Subcontractor Addition" form to the Commission Agreement Officer. The form identifies the new subcontractor, bidding method used (competitive or non-competitive), and the tasks the new subcontractor will perform. V. Addition of Job Classifications vi. Increased Rates that Exceed the Rates Identified in Exhibit B. vii. Increased total costs above the total grant award amount. The Commission will not be liable for expenses exceeding the total grant award amount, unless an amendment has been approved. 9. Contracting and Procurement Procedures This section provides general requirements for an agreement between the Recipient and a third party ("subcontractor"). Subcontracting criteria are specified in the applicable federal regulations incorporated by reference in this Agreement. The Energy Commission will defer to the Recipient's own regulations and procedures as long as they reflect applicable state and local laws and regulations and are not in conflict with the minimum standards specified in this Agreement and any Code of Federal Regulations incorporated by reference in this Agreement. Upon request, the Recipient must submit to the Commission Agreement Manager a copy of all solicitations for services or products required to carry out the terms of this Agreement, copies of the proposals or bids received, and copies of subcontracts executed. The Recipient is responsible for handling all contractual and administrative issues arising out of or related to any subcontracts it enters into under this Agreement. All subcontracts except those with U.S. Department of Energy National Laboratories must incorporate all of the following: EXHIBIT C A. A clear and accurate description of the material, products, or services to be procured as well as a detailed budget and timeline. B. Provisions which allow for administrative, contractual, or legal remedies in instances where subcontractors violate or breach contract terms, and provide for such sanctions and penalties as may be appropriate. C. Provisions for termination by the Recipient including termination procedures and the basis for settlement. D. Any additional requirements specified in the federal regulations incorporated by reference in this Agreement. E. Further assignments shall not be made to any third or subsequent tier subcontractor without additional advance written consent of the Energy Commission's Grants Officer. All subcontracts except those with U.S. Department of Energy National Laboratories must also incorporate language conforming to the following provisions specified in this Agreement and contain the following provisions: A. Standard of Performance B. Nondiscrimination C. Indemnification D. Pre -Existing Intellectual Property, Independently Funded Intellectual Property, and Pre-existing Data E. Intellectual Property F. Royalty Payments to the Energy Commission G. Travel and Per Diem H. Equipment I. Recordkeeping, Cost Accounting, and Auditing J. Access to Sites and Records K. Legal Notice L. Survival of the following sections: i. Recordkeeping, Cost Accounting and Auditing ii. Equipment iii. Pre -Existing Intellectual Property, Independently Funded Intellectual Property, and Pre-existing Data iv. Intellectual Property V. Royalty Payments to the Energy Commission vi. Access to Sites and Records EXHIBIT C Nothing contained in this Agreement or otherwise, shall create any contractual relation between the Energy Commission and any subcontractors, and no subcontract shall relieve the Recipient of its responsibilities and obligations hereunder. Recipient shall be responsible for establishing and maintaining contractual agreements with and reimbursement of each subcontractor for work performed in accordance with the terms of this Agreement. All subcontracts entered into pursuant to this Agreement shall be subject to examination and audit by the Bureau of State Audits for a period of three years after final payment under this Agreement. Failure to comply with the above requirements may result in the termination of this Agreement. 10. Permits and Clearances The Recipient is responsible for ensuring all necessary permits and environmental documents are prepared and clearances are obtained from the appropriate agencies. 11. Equipment Title to equipment acquired by the Recipient with grant funds shall vest in the Recipient. The Recipient shall use the equipment in the project or program for which it was acquired as long as needed, whether or not the project or program continues to be supported by grant funds and shall not encumber the property without Commission Agreement Manager approval. Recipient should refer to the applicable federal regulations incorporated by reference in this Agreement for additional equipment requirements. 12. Termination A. Default In the event of any default of this Agreement, the Commission may, without prejudice to any of its other legal remedies, terminate this Agreement upon five (5)-days written notice to UC. B. For Cause The Commission may, for cause, and at its option, terminate this Agreement upon giving thirty (30)-days advance written notice to UC. In such event, UC agrees to use all reasonable efforts to mitigate its expenses and obligations. The term "for cause" includes, but is not limited to, the following reasons: Loss or redirection of State or Federal funding for this Agreement; ii. Significant change in State or Commission policy such that the work or Product being funded would not be supported by the Commission; EXHIBIT C iii. Change in Commission's staffing such that the work or Product being funded can be done by staff of the Commission. C. Allowable Costs The federal regulations incorporated into this agreement shall be used to determine allowable termination costs, but not in excess of the total amount of the Agreement. 13. Travel and Per Diem A. Recipient shall be reimbursed for travel and per diem for trips in accordance with the Regents -approved rates for University of California (UC) employees. Recipient shall provide a copy of the current Regents -approved rates to the Energy Commission upon request. Travel expenses in excess of Regents -approved rates cannot be reimbursed. B. Those trips already identified in the Budget section are considered approved when this Agreement goes into effect. Travel not listed in the Budget section of this Agreement shall require prior written authorization from the Commission Agreement Manager. When requesting such approval, Recipient will identify who shall travel, the purpose of travel and the destination. C. Any Department of Energy (DOE) authorized travel shall be reimbursed on the same basis as the DOE approved rates in effect during this Agreement. D. UC must document travel expenses in its financial records as follows: i. Expenses must be detailed using the current UC Regents / DOE - approved rates. ii. Expenses must be listed by trip, including dates and times of departure and return. iii. UC/DOE must retain receipts for travel expenses claimed for audit and verification. E. Travel not listed in the Budget section of this Agreement shall require prior written authorization, via e-mail or other means, from the Commission Agreement Manager. 14. Standard of Performance A. Recipient, its subcontractors and their employees in the performance of Recipient's work under this Agreement shall be responsible for exercising the degree of skill and care required by customarily accepted good professional practices and procedures used in scientific and engineering research fields. EXHIBIT C B. The failure of a project to achieve the technical or economic goals stated in the Scope of Work is not a basis for the Energy Commission to determine that the work is unacceptable, unless the work conducted by the Recipient or its subcontractors is deemed by the Energy Commission to have failed the foregoing standard of performance. C. In the event that Recipient or its subcontractor fails to perform in accordance with the foregoing standard of performance, the Commission Agreement Manager and the Recipient Project Manager shall seek to negotiate in good faith an equitable resolution satisfactory to both parties. D. Nothing contained in this section is intended to limit any of the rights or remedies which the Energy Commission may have under law. 15. Payment of Funds A. Payment Requests Unless indicated otherwise in Special Conditions, the Recipient may request payment from the Energy Commission at any time during the term of this Agreement, but no more frequently than monthly, although it is preferred that payment requests be submitted with the progress reports. Payments will generally be made on a reimbursement basis for Recipient's expenditures, i.e., after the Recipient has paid for a service, product, supplies, or other approved budget item. No reimbursement for food or beverages shall be made other than allowable per diem charges. Funds in this award have a limited period in which they must be expended. All Recipient expenditures must occur within the approved term of this Agreement. B. Advance Payment UC may make advance payments to UC campuses, Federal Laboratories, California State Agencies, the California State University and Community College systems, and Federal Agencies. UC shall not provide advance payment without prior written approval from both the Commission Agreement Manager and the Commission Agreement Officer. ii. UC can submit the first invoice for advance payment at any time. Thereafter, Contractor shall submit all invoices for advance payment on a quarterly basis. iii. If the estimated period of performance exceeds ninety (90) days and the estimated cost exceeds $25,000, the Commission shall advance funds incrementally. In such a case, UC will initially invoice the Commission in an amount sufficient to permit the work to proceed for one hundred and eighty (180) days and thereafter invoice the Commission to maintain approximately a ninety (90) day period that is funded in advance. EXHIBIT C iv. A reconciliation report, reflecting actual costs, shall be submitted every quarter after the initial advance payment. This report is due within 30 days after the end of each quarter. The reconciliation report shall include detail as provided in the Payment Request Format clause below. V. Other than the initial advance payment, the Commission Agreement Manager will approve advance payments provided that the Commission Agreement Manager has received and accepted the Reports, and any other required Products for the previous period. vi. Upon completion or termination of this Agreement, Contractor shall refund any excess funds to the Commission within sixty (60) calendar days. C. Payment Request Format A request for payment shall consist of, but not be limited to, the following: i. Agreement number, date prepared, and billing period. ii. Operating expenses, including equipment, travel, miscellaneous, and materials. iii. A report of Match Funds expenditures (actual cash and in -kind services). iv. Fees (fringe, direct and indirect overheads, general and administrative, profit, etc.). Identify actual and cumulative amounts by budget category. V. A report of the in -State expenditures associated with the request for payment and the cumulative -to -date of in -State expenditures for the project. This report can be listed on the request for payment or appended to it as an attachment. vi. A copy of the UC General Ledger for the request for payment period. The Energy Commission will accept computer -generated or electronically transmitted invoices without backup documentation provided that the Recipient sends a hardcopy the same day. Recipient shall submit all invoices to the following address: California Energy Commission Accounting Office EPIC Grant Program 1516 Ninth Street, MS-2 Sacramento, CA 95814 D. Release of Funds EXHIBIT C Each invoice is subject to both Commission Agreement Manager and Commission Grants Officer approval. The Commission Agreement Manager will not process any payment request during the Agreement term if the following conditions have not been met: All required Products and Reports have been submitted and are in accordance with the Standard of Performance Clause. All applicable special conditions have been met. iii. All appropriate permits or permit waivers from governmental agencies have been issued to the Recipient and copies have been received by the Commission Agreement Manager. Payments shall be made to the Recipient only for undisputed invoices. An undisputed invoice is an invoice executed by the Recipient for project expenditures, that meets all payment conditions of the Agreement, and for which additional evidence is not required to make payment. The invoice may be disputed if all Products due for the billing period have not been received and approved, if the invoice is inaccurate, or if it does not comply with the terms of this Agreement. If the invoice is disputed the Recipient will be notified via a Dispute Notification Form within 15 working days of receipt of the invoice. On any disputed invoice, the Commission shall withhold payment only on that portion of the invoice that is disputed. E. Indirect Costs For any of the 10 University of California (UC) campuses and the UC Office of the President, whether funds are received through a prime award or through a subaward from another UC location, the maximum indirect cost rate allowable under this Agreement is 25% of Modified Total Direct Cost (MDTC). F. Retention No retention will be withheld under this Agreement. G. State Controller's Office Payments are made by the State Controller's Office. 16. Recordkeeping, Cost Accounting, and Auditing A. Cost Accounting Recipient agrees to keep separate, complete, and correct accounting of the costs involved in completing the grant and match funded (if any) portion of this project. The Energy Commission or its agent shall have the right to examine Recipient's books of accounts at all reasonable times to the extent and as is necessary to verify the accuracy of Recipient's reports. B. Accounting Procedures EXHIBIT C The Recipient's costs shall be determined on the basis of the Recipient's accounting system procedures and practices employed as of the effective date of this Agreement, provided that the Recipient shall use generally accepted accounting principles and cost reimbursement practices. The Recipient's cost accounting practices used in accumulating and reporting costs during the performance of this Agreement shall be consistent with the practices used in estimating costs for any proposal to which this Agreement relates, provided that such practices are consistent with the other terms of this Agreement and provided, further, that such costs may be accumulated and reported in greater detail during performance of this Agreement. The Recipient's accounting system shall distinguish between direct costs and indirect costs. All costs incurred for the same purpose, in like circumstances, are either direct costs only or indirect costs only with respect to costs incurred under this Agreement. C. Allowability of Costs Allowable Costs The costs for which the Recipient shall be reimbursed under this Agreement include all costs, direct and indirect, incurred in the performance of work that are identified in the grant Budget. Costs must be incurred within the term of the Agreement. Factors to be considered in determining whether an individual item of cost is allowable include (i) reasonableness of the item, (ii) appropriate use of the allocability of the item to the work, (iii) applicable federal cost principles incorporated by reference in this Agreement, and (iv) the terms and conditions of this Agreement. ii. Unallowable Costs The following is a description of some specific items of cost that are unallowable; provided, however, that the fact that a particular item of cost is not included shall not mean that it is allowable. Details concerning the allowability of costs are available from the Energy Commission's Accounting Office. a. Profit or Fees, Contingency Costs, Imputed Costs, Fines and Penalties, Losses, Excess Profit Taxes and increased rates for this Agreement (if not otherwise approved by the Energy Commission as described in Section 8 of this Agreement). b. The Energy Commission will pay for state or local sales or use taxes on expenditures. The State of California is exempt from Federal excise taxes. iii. Except as provided for in this Agreement, Recipient shall use the federal regulations incorporated by reference in this Agreement when determining allowable and unallowable costs. In the event of a conflict, this Agreement takes precedence over the federal regulations. EXHIBIT C D. Audit Rights Recipient shall maintain books, records, documents, and other evidence, based on the procedures set forth above, sufficient to reflect properly all costs claimed to have been incurred in performing this Agreement. The Energy Commission, an agency of the state or, at the Energy Commission's option, a public accounting firm designated by the Energy Commission, may audit such accounting records at all reasonable times with prior notice by the Energy Commission. The Energy Commission shall bear the expense of such audits. It is the intent of the parties that such audits shall ordinarily be performed not more frequently than once every twelve (12) months during the performance of the work and once at any time within three (3) years following payment by the Energy Commission of the Recipient's final invoice. However, performance of any such interim audits by the Energy Commission does not preclude further audit. Recipient agrees that the Energy Commission, the Department of General Services, the Bureau of State Audits, or their designated representative shall have the right to review and to copy any records and supporting source documentation pertaining to the performance of this Agreement. Recipient agrees to maintain such records for possible audit for a minimum of three (3) years after final payment, unless a longer period of record retention is stipulated. Recipient agrees to allow the auditor(s) access to such records during normal business hours and to allow interviews of any employees who might reasonably have information related to such records. Further, Recipient agrees to include a similar right of the state to audit records and interview staff in any subcontract related to performance of this Agreement. E. Refund to the Energy Commission If the Energy Commission determines, that any invoiced and paid amounts exceed the actual allowable incurred costs, Recipient shall repay such amounts to the Energy Commission within thirty (30) days of request or as otherwise agreed by the Energy Commission and Recipient. If the Energy Commission does not receive such repayments, the Energy Commission shall be entitled to withhold further payments under this Agreement to the Recipient or seek repayment from the Recipient. F. Match Funds If the Budget includes a Match Funds requirement, the Recipient's commitment of resources, as described in this Agreement, is a required expenditure for receipt of Energy Commission funds. Grant funds will be released only if the required percentages of Match Funds are expended. The Recipient must maintain accounting records detailing the expenditure of the Match Funds (actual cash and in -kind services) reported as Match Funds expenditures on the Recipient's request for payment. EXHIBIT C 17. Indemnification Recipient shall defend, indemnify and hold the State of California and its agencies (including the Energy Commission and the California Public Utilities Commission), their respective officers, employees and agents harmless from and against any and all liability, loss, expense, attorneys' fees, or claims for injury or damages arising out of the performance of this Agreement but only in proportion to and to the extent such liability, loss expense, attorneys' fees or claims for injury or damages are caused by or result from the negligent or intentional acts or omissions of Recipient, its officers, agents or employees. The Energy Commission shall defend, indemnify and hold Recipient, its officers, employees and agents harmless from and against any and all liability, loss expense, attorneys' fees or claims for injury or damages arising out of the performance of this Agreement but only in proportion to and to the extent such liability, loss, expense, attorneys' fees or claims for injury or damages are caused by or result from the negligent or intentional acts or omissions of the State of California, its officers, agents or employees. 18. Workers' Compensation Insurance A. Recipient hereby warrants that it carries Worker's Compensation Insurance for all of its employees who will be engaged in the performance of this Agreement, and agrees to furnish to the Commission Agreement Manager satisfactory evidence of this insurance at any time the Commission Agreement Manager may request. B. If Recipient is self -insured for worker's compensation, it hereby warrants such self-insurance is permissible under the laws of the State of California and agrees to furnish to the Commission Agreement Manager satisfactory evidence of this insurance at any time the Commission Agreement Manager may request. 19. Confidentiality A. Identification of Confidential Information For purposes of this Agreement, "Confidential Information" means any data or information that is proprietary to the Disclosing Party, allowed to be kept confidential under the California Public Records Act (Government Code §6250 et seq.) or other applicable law, and not publicly known at the time of disclosure to the receiving party. The obligations contained in this clause shall not apply to any confidential information which: a. After disclosure becomes publicly known otherwise than through a breach by the receiving arty, its officers, employees, agents or contractors; EXHIBIT C b. Can be shown by reasonable proof by the receiving party to have reached its hands otherwise than by being communicated by the other party including being known to it prior to disclosure, or having been developed by or for it wholly independently of the other party or having been obtained from a third party without any restriction on disclosure on such third party of which the recipient is aware, having made due enquiry; c. Is required by law, regulation or order of a competent authority (including any regulatory or governmental body or securities exchange) to be disclosed by the receiving party, provided that, where practicable, the disclosing party is given reasonable advance notice of the intended disclosure and provided that the relaxation of the obligations of confidentiality shall only last for as long as necessary to comply with the relevant law, regulation or order and shall apply solely for the purposes of such compliance; or d. Is approved for release, in writing, by an authorized representative of the disclosing party. ii. Attachment 1 to this Exhibit contains a description of the Products and Reports which contain Confidential Information, per agreement of the Recipient and the Energy Commission. The Energy Commission will not disclose the Confidential Information, except as provided in subsection B. The parties shall redact the Confidential Information from these Products and Reports prior to any public disclosure of the Products. iii. If additional Confidential Information is developed or collected during the course of this Agreement (beyond that described in Attachment 1), the Recipient will follow the procedures for a request for designation of Confidential Information as specified in Title 20 California Code of Regulations (CCR) Section 2505. The Energy Commission's confidentiality determination. Confidential Information may Letter of Agreement (see th e iv. When submitting Products and Reports containing Confidential Information, the Recipient will mark each page of any document containing Confidential Information as "confidential", and present it in a sealed package to the Contracts, Grants, and Loans Office. EXHIBIT C The Commission Agreement Manager may require the Recipient to submit a non -confidential version of the Product or Report, if it is feasible to separate the Confidential Information from the non - confidential information. The Recipient is not required to submit such Products in a sealed package. B. Disclosure of Confidential Information Disclosure of Confidential Information by the Energy Commission may only be made pursuant to 20 CCR 2506, 2507, and 2508. All confidential data, records, Products, or Reports that are legally disclosed by the Recipient or any other entity become public records and are no longer subject to the above confidentiality designation. 20. Pre -Existing Intellectual Property, Independently Funded Intellectual Property, and Pre-existing Data A. Ownership The Energy Commission makes no ownership, license, or royalty claims to Pre-existing Intellectual Property, Independently Funded Intellectual Property, Pre-existing Data, Project -relevant Pre-existing Intellectual Property, Project -relevant Independently Funded Intellectual Property, or Project -relevant Pre-existing Data. B. Project -relevant Pre -Existing Intellectual Property, and Project -relevant Independently Funded Intellectual Property (collectively, "Project -relevant Intellectual Property") and Project -relevant Pre-existing Data i. Identification of Project -relevant Intellectual Property and Project - relevant Pre-existing Data a. All Project -relevant Pre-existing Intellectual Property of Key Personnel that is owned or controlled by Recipient is listed in Attachment 1 to this Exhibit. Within sixty (60) days of becoming aware that additional Project -relevant Pre-existing Intellectual Property of Key Personnel that is owned or controlled by Recipient has been or will be used in the performance of this Agreement, Recipient will notify the Energy Commission. Attachment 1 may be amended by a Letter of Agreement (see the "Amendments" section). b. All Project -relevant Independently Funded Intellectual Property of Key Personnel that is owned or controlled by Recipient and the source of funding for such Intellectual Property is described in Attachment 1 to this Exhibit. Within sixty (60) days of becoming aware that additional Project -relevant Independently Funded Intellectual Property of Key Personnel that is owned or controlled by Recipient has been or will be used in the performance of this Agreement, Recipient will notify the Energy Commission. Attachment 1 may be amended by a Letter of Agreement (see the "Amendments" section). NmmI1.111P, c. During the term of this Agreement, Recipient will use reasonable efforts to notify the Energy Commission of any Project -relevant Intellectual Property of Key Personnel that is owned or controlled by Recipient that Recipient becomes actually aware of, with the qualification that Recipient is not in a position to guarantee that all potential Project -relevant Intellectual Property has been identified. d. If Recipient will be using Project -relevant Pre-existing Data of Key Personnel that is owned or controlled by Recipient in the performance of this Agreement that have restrictions on use, such data and use restrictions will also be identified in Attachment 1, which may be amended by a Letter of Agreement (see the "Amendments" section). Access to Project -Relevant Intellectual Property and Project -relevant Pre-existing Data The Energy Commission and California Public Utilities Commission may access Project -relevant Intellectual property identified in Attachment 1, and Project -relevant Pre-existing Data of Key Personnel that is owned or controlled by Recipient, whether or not it is identified in Attachment 1, but only to the extent that such access is limited to that reasonably necessary to: (a) demonstrate the validity of any premise, postulate, or conclusion referred to or expressed in any Product or Report; or (b) establish a baseline for repayment purposes. No express or implied licenses or other rights are provided to the Energy Commission and CPUC under any patents, patent applications, or other proprietary rights of the Recipient. Upon the Commission Agreement Manager's request, the Recipient will provide the Commission Agreement Manager and any reviewers designated by the Energy Commission or the CPUC with access to review the Recipient's Project -relevant Intellectual Property and Project -relevant Pre-existing Data. If such Project - relevant Intellectual Property or Project -relevant Pre-existing Data has been designated as Confidential Information as specified in Section 19, the Energy Commission will only disclose it under the circumstances specified in Title 20 CCR Sections 2506, 2507, and 2508. EXHIBIT C iii. Preservation of Project -Relevant Intellectual Property The Recipient will preserve any of its Project -relevant Intellectual Property at its own expense for at least five (5) years from the Agreement's end date or until the timeframe in Recipient's retention policy, whichever is longer. Notwithstanding the foregoing, Recipient has the sole right but not the obligation to prosecute or maintain patent protection for any of its Project -relevant Intellectual Property at any time. The Energy Commission and the CPUC will have reasonable access to the Project -relevant Intellectual Property and Project -relevant Pre- existing Data throughout the retention period for purposes specified in this Section 20 of the Agreement. C. All terms of this Section 20 above will be flowed down to Subcontractors, including the access rights to Project -relevant Intellectual Property and Project -relevant Pre-existing Data in part B.ii. 21. Intellectual Property A. Ownership Except as otherwise specified in this Agreement, the Recipient owns all Intellectual Property created, conceived or reduced to practice, discovered, made, developed, or altered by Recipient in the performance of this Agreement. B. Data Rights Pre-existing Data that will be included as a deliverable under this Agreement will be identified in Attachment 1. If the Commission provides its own pre-existing data, the Commission shall mark all such data, and Recipient and its subcontractors may only use it for purposes of the Scope of Work of this Agreement, unless such data is otherwise publicly available. ii. At the Commission's expense for actual cost of duplication and delivery, Recipient shall deliver additional Project Data that is specifically requested by the Commission. iii. The Commission and CPUC shall have the unrestricted right to use the Deliverable Data and delivered Project Data, subject to applicable pre-existing use and disclosure restrictions identified in Attachment 1 and other provisions in this Agreement, including but not limited to Confidentiality. iv. The Recipient shall have the unrestricted right to use Project Data, subject to applicable use and disclosure restrictions identified in Attachment 1 and other provisions in this Agreement, including but not limited to, Confidentiality. EXHIBIT C C. Copyrights All rights in Copyrightable Works other than Reports first created by the Recipient are the property of the Recipient. Unless pre-existing restrictions are listed under Attachment 1, the Recipient grants The State of California, including the Commission, a fully paid -up, royalty - free, non-exclusive, non -transferable, non-sublicensable, irrevocable license to reproduce, prepare derivative works, distribute copies, perform publicly, and display publicly Copyrightable Works specified for delivery to the Commission in the Scope of Work, to fulfill the State of California's governmental purposes, including the Commission's statutory objectives. ii. Notwithstanding C.i. directly above, when the purpose of the Scope of Work is specifically to create a Copyrightable Work for use by the Commission and that fact is indicated in the Scope of Work, then all rights in such Copyrightable Work will be the property of the Commission. The Commission grants to Recipient a fully paid -up, royalty -free, non-exclusive, non -transferable, non-sublicensable, irrevocable license to reproduce, prepare derivative works, distribute copies, perform publicly, and display publicly such Copyrightable Work for educational and research purposes and to allow other educational and nonprofit institutions to do so for educational and research purposes. iii. Upon written request and subsequent amendment, the Commission may request delivery of computer software that is not identified as a Product, but was first created by the Recipient in the performance of the Scope of Work. To the extent the Recipient is legally able to do so, Recipient shall grant the State of California, including the Commission, a fully paid -up, royalty -free, nonexclusive, non- transferable, non-sublicensable, irrevocable license to reproduce, prepare derivative works, distribute copies, perform publicly, and display publicly such software to fulfill the State of California's governmental purposes, including the Commission's statutory objectives, subject to restrictions, if any, identified in Attachment 1. iv. Copyrightable Works that may be patentable are also subject to the Patent Rights clause, which will take precedence in case of a conflict. EXHIBIT C V. The Commission may direct Recipient to issue a no -cost, non- exclusive, non-sublicensable, irrevocable, royalty -free, worldwide, perpetual license to Copyrightable Works described in subparagraphs i. and iii. above to Load -serving entities and/or the third parties working with a Load -serving entity, for the Load -serving entity's use in enhancing its service to EPIC ratepayers. This license is for non-commercial purposes, meaning that it does not allow Load -serving entities to sell, commercially offer or distribute Copyrightable Works to others or in the marketplace. For example, if the Recipient creates copyrightable software, the Commission can give a Load -serving entity the right to use the software as part of its operations of providing service to EPIC ratepayers, but the Load - serving entity cannot sell or distribute the software. D. Patent Rights i. Subject to the requirements of law, all rights to any Subject Inventions shall belong to the Recipient. The State of California, including the Commission, shall have a no -cost, non-exclusive, non- transferable, non-sublicensable, irrevocable, royalty -free, worldwide, paid -up license to practice, or have practiced, such Subject Invention for governmental purposes, including the Commission's statutory objectives. A confirmatory license will be executed by the Recipient to provide said license to any such Subject Invention, within ninety (90) days after filing of patent application. Notwithstanding the foregoing and except if the Commission exercises March -in Rights, Recipient has the sole right but not the obligation to prosecute or maintain patent protection for any Subject Invention at any time. ii. The Commission may direct Recipient to issue a no -cost, non- exclusive, non-sublicensable, irrevocable, royalty -free, worldwide, paid -up license to Subject Inventions to Load -serving entities and/or third parties working with a Load -serving entity, solely to practice Subject Inventions for non-commercial purposes, so as to enhance the Load -serving entities' service to EPIC ratepayers. This license is for non-commercial purposes, meaning that it does not allow Load -serving entities to sell, commercially offer or distribute patentable works to others or in the marketplace. For example, if the Recipient creates patentable software, the Commission can give a Load -serving entity the right to use the software as part of its operations of providing service to EPIC ratepayers, but the Load -serving entity cannot sell or distribute the software. EXHIBIT C iii. If any Subject Invention that is subject to the licenses above has been designated as Confidential Information as specified in Section 19, all license holders will only disclose the Subject Invention under the circumstances specified in Title 20 CCR Sections 2506, 2507, and 2508. All license holders will ensure that their officers, employees, and subcontractors who have access to the Subject Invention are informed of and abide by the disclosure limitations in Section 19. iv. Copyrightable Works that may be patentable are also subject to the Patent Rights clause, which will take precedence in case of a conflict. E. Energy Commission's Rights to Subject Inventions March -in Rights With respect to any Subject Invention in which Recipient has title and to the extent permissible under Federal laws and regulations, the Energy Commission shall have the right to require Recipient or Recipient's Licensee to grant a nonexclusive, partially exclusive, or exclusive license in any field of use to a responsible applicant, upon terms that are reasonable under the circumstances, if the Energy Commission determines that: a) the Recipient or Recipient's Licensee has not taken, or is not expected to take within a reasonable time, effective steps to achieve practical application of the Invention; or b) action is necessary to alleviate health or safety needs that are not reasonably satisfied by Recipient or Recipient's Licensee. If the Recipient or Recipient's Licensee refuses such request, the Commission may grant such a license itself. The parties may refer to the Federal Government's procedures for handling march -in rights. ii. Notice of Patent If any patent is issued for a Subject Invention, the Recipient will send the Commission Agreement Manager and Commission Agreement Officer written notice of the issuance within three (3) months of the issuance date. The notice must include the patent title, issuance number, and a general description of the Subject Invention. iii. Legal Notice The Recipient and all persons and/or entities obtaining an ownership interest in Subject Inventions must include the following statement within the specification of any United States patent application, and any subsequently issued patent for the invention: "This invention was made with State of California support under California Energy Commission grant number XXX-XX-XXX. The Energy Commission has certain rights to this invention." EXHIBIT C F. Access to and Preservation of Subject Inventions and Copyrightable Works Access Upon the Commission Agreement Manager's request, the Recipient will provide the Commission Agreement Manager and any individuals designated by the Commission or the CPUC with access to the Recipient's Subject Inventions and to Copyrightable Works which are subject to Sections 21.C.i and 21.C.iii., in order to exercise the licenses described above, and to determine any royalty payments due under the Agreement. ii. Preservation The Recipient will preserve Subject Inventions and Copyrightable Works which are subject to Sections 21.C.i and 21.C.iii, in order to exercise the licenses described above, at its own expense for at least ten (10) years from the Agreement's end date or until the timeframe in Recipient's retention policy, whichever is longer. Notwithstanding the foregoing, Recipient is not obliged under this Agreement to obtain or maintain any intellectual property protection for Subject Inventions. Recipient has the sole right but not the obligation to file a patent application for a Subject Invention, but Recipient will file and prosecute a patent application for any Subject Invention which a Licensee has a license under Section 21.D.ii., upon written request by such Licensee and at Licensee's expense. G. All terms of this Section 21 above will be flowed down to Subcontractors. 22. Royalty Payments to the Energy Commission A. In consideration of the Commission providing funding to the UC, UC agrees to pay the Commission a portion of either Net Revenues or Net Royalties under the terms and conditions hereinafter set forth. If federal funds are used in the conception or reduction to practice of a Subject Invention, such Net Revenues or Net Royalties shall be used by the State of California in a manner consistent with Title 35 United States Code (USC), Section 202, subdivision (c)(7) to the extent this USC Section applies). Net Royalties. The UC's obligation to make payments to the Commission shall commence from the date that the Net Royalties calculation is positive and extend until ten (10) years from the Agreement's end date. Payments are payable in annual installments and are due the first day of March for Net Royalties calculation made for the UC's prior fiscal year. UC agrees to pay to Commission an amount equivalent to 10% of the total cumulative Net Royalties, less payments made by UC to Commission in previous years when Net Royalties were positive. Payments shall be made by check and made payable to the California Energy Commission, EPIC Fund. EXHIBIT C ii. Net Revenues. If the UC is the licensee, the UC's obligation to make payments to the Commission shall commence upon the first sale of the Licensed Product. Payments are payable in annual installments and are due the first day of March for the prior fiscal year of the UC and extend until ten (10) years from the Agreement's end date. UC agrees to pay an amount equivalent to 1.5% of the Net Revenues by check made payable to the California Energy Commission, EPIC Fund. B. If a Licensed Product was developed in part with Match Funds during the Agreement term, the Net Royalty payments will be reduced in accordance with the percentage of such development activities that were funded with Match Funds. For example, if 20% of the development activities were funded with Match Funds during the Agreement and total cumulative Net Royalties equaled $100,000 in one year, the Recipient would owe the Energy Commission $8,000 for the year ( 10% of $100,000 = $10,000; 80% of $10,000 = $8,000 (the 80% coming from 100% - 20% in match funds)). If the Energy Commission is providing funds to the Recipient under this Agreement as a project match partner and Energy Commission funds are used in part to develop a Licensed Product, the Net Royalty payments will be reduced in accordance with the percentage of such development activities that were funded with non -Energy Commission funds during the Agreement term. For example, if 80% of the development activities were funded with Recipient and/or third party funds during the Agreement and Net Royalties totaled $100,000 in one year, the Recipient would owe the Energy Commission $2,000 for the year (10% of $100,000 = $10,000; 20% of $10,000 = $2,000 (the 20% coming from 100% - 80% in match funds)). C. Unless the Recipient makes an early buyout, total Net Royalty or Net Revenue payments will be limited to three (3) times the amount of funds paid by the Energy Commission under the Agreement. The Recipient may make an early buyout payment to the Energy Commission without a pre- payment penalty, as an alternative to making annual royalty payments for ten (10) years following the Agreement's end date. The payment must be in a lump sum amount equal to one and a half (1.5) times the amount of funds paid by the Energy Commission under the Agreement and made within five (5) years of the Agreement's end date. The payment amount due under the early buyout option will not be reduced by the percentage of Match Funds as described above. EXHIBIT C D. UC agrees not to make any sale, license, lease, gift or other transfer of any Project Data Subject Invention, Copyrightable Work or Licensed Product with the intent of, or for the purpose of, depriving Commission of Net Royalties or Net Revenues hereunder. Generally, this means that the UC will not make any sale, license, lease or other transfer of Project Data, Subject Invention, Copyrightable Work or Licensed Product for consideration other than fair market value except for research, educational, or other mutually agreed to purposes intended to serve the public benefit. E. UC hall maintain separate accounts within their financial and other records for purposes of tracking royalties and revenues due to the Commission under this Agreement. F. Audits on Payments to Commission. Payments to the Commission are subject to the Audit clause. G. Defaults. In the event of default hereunder, the Commission shall be free to exercise all rights and remedies available to it herein, and under law and at equity. UC's failure to pay when due, any amount due and payable under the terms of this contract constitutes a default under this Agreement. 23. General Provisions A. Governing Law It is hereby understood and agreed that this Agreement shall be governed by the laws of the State of California as to interpretation and performance. B. Independent Capacity The Recipient, and the agents and employees of the Recipient, in the performance of this Agreement, shall act in an independent capacity and not as officers or employees or agents of the State of California. C. Assignment Without the written consent of the Energy Commission in the form of a formal written amendment, this Agreement is not assignable or transferable by Recipient either in whole or in part. D. Timeliness Time is of the essence in this Agreement. E. Unenforceable Provision In the event that any provision of this Agreement is unenforceable or held to be unenforceable, then the parties agree that all other provisions of this Agreement have force and effect and shall not be affected thereby. F. Waiver No waiver of any breach of this Agreement shall be held to be a waiver of any other or subsequent breach. All remedies afforded in this Agreement shall be taken and construed as cumulative, that is, in addition to every other remedy provided therein or by law. EXHIBIT C G. Assurances The Energy Commission reserves the right to seek further written assurances from the Recipient and its team that the work of the project under this Agreement will be performed consistent with the terms of the Agreement. H. Notification of Important Occurrences Recipient shall promptly notify the Energy Commission of the occurrence of any of the following: i. A change of address. ii. The existence of any litigation or other legal proceeding affecting the project. iii. The occurrence of any casualty or other loss to project personnel, equipment or third parties. iv. Receipt of notice of any claim or potential claim against Recipient for patent, copyright, trademark, service mark and/or trade secret infringement that could affect the Energy Commission's rights. Access to Sites and Records The Energy Commission staff or its representatives shall have reasonable access to all project sites and to all records related to this Agreement. J. Survival of Terms It is understood and agreed that certain provisions shall survive the completion or termination date of this Agreement for any reason. The provisions include, but are not limited to: i. "Payments of Funds" ii. "Equipment" iii. "Notification of Important Occurrences" iv. "Termination" V. "Recordkeeping, Cost Accounting, and Auditing" vi. "Indemnification" vii. "Pre -Existing Intellectual Property, Independently Funded Intellectual Property, and Pre-existing Data" viii. "Intellectual Property" ix. "Royalty Payments to the Energy Commission" X. "Access to Sites and Records" 24. Certifications and Compliance A. Federal, State & Local Laws Recipient shall comply with all applicable federal, state and local laws, rules and regulations. EXHIBIT C B. Nondiscrimination Statement of Compliance During the performance of this Agreement, Recipient and its subcontractors shall not unlawfully discriminate, harass or allow harassment, against any employee or applicant for employment because of sex, sexual orientation, race, color, ancestry, religious creed, national origin, physical disability (including HIV and AIDS), mental disability, medical condition (cancer), age (40), marital status, and denial of family care leave. Recipient and its subcontractors shall insure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment. Recipient and its subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Government Code Sections 12990 et seq.) and the applicable regulations promulgated thereunder (California Code of Regulations, Title 2, Section 7285 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code Section 12990 (a-f), set forth in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations are incorporated into this Agreement by reference and made a part of it as if set forth in full. Recipient and its subcontractors shall give written notice of their obligations under this section to labor organizations with which they have a collective bargaining or other Agreement. The Recipient shall include the nondiscrimination and compliance provisions of this section in all subcontracts to perform work under this Agreement. C. Drug Free Workplace Certification By signing this Agreement, the Recipient hereby certifies under penalty of perjury under the laws of the State of California that the Recipient will comply with the requirements of the Drug -Free Workplace Act of 1990 (Government Code Section 8350 et seq.) and will provide a drug -free workplace by taking the following actions: Publish a statement notifying employees that unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited and specifying actions to be taken against employees for violations as required by Government Code Section 8355(a). ii. Establish a Drug -Free Awareness Program as required by Government Code Section 8355(b) to inform employees about all of the following: a. The dangers of drug abuse in the workplace; b. The person's or organization's policy of maintaining a drug -free workplace; c. Any available counseling, rehabilitation, and employee assistance programs; and d. Penalties that may be imposed upon employees for drug abuse violations. iii. Provide, as required by Government Code Section 8355(c), that every employee who works on the proposed project: a. Will receive a copy of the company's drug -free policy statement; b. Will agree to abide by the terms of the company's statement as a condition of employment on the project. Failure to comply with these requirements may result in suspension of payments under the Agreement or termination of the Agreement or both, and the Recipient may be ineligible for any future state awards if the Energy Commission determines that any of the following has occurred: 1) the Recipient has made false certification, or 2) violates the certification by failing to carry out the requirements as noted above. D. National Labor Relations Board Certification (Not applicable to public entities) Recipient, by signing this Agreement, does swear under penalty of perjury that no more than one final unappealable finding of contempt of court by a Federal Court has been issued against the Recipient within the immediately preceding two year period because of the Recipient's failure to comply with an order of a Federal Court which orders the Recipient to comply with an order of the National Labor Relations Board. E. Child Support Compliance Act (Applicable to California Employers) For any agreement in excess of $100,000, the Recipient acknowledges that: It recognizes the importance of child and family support obligations and shall fully comply with all applicable state and federal laws relating to child and family support enforcement, including, but not limited to, disclosure of information and compliance with earnings assignment orders, as provided in Chapter 8 (commencing with section 5200) of Part 5 of Division 9 of the Family Code; and ii. To the best of its knowledge is fully complying with the earnings assignment orders of all employees and is providing the names of all new employees to the New Hire Registry maintained by the California Employment Development Department. F. Air or Water Pollution Violation Under the state laws, the Recipient shall not be: In violation of any order or resolution not subject to review promulgated by the State Air Resources Board or an air pollution control district; EXHIBIT C ii. Subject to cease and desist order not subject to review issued pursuant to Section 13301 of the Water Code for violation of waste discharge requirements or discharge prohibitions; or iii. Finally determined to be in violation of provisions of federal law relating to air or water pollution. G. Americans with Disabilities Act By signing this Agreement, Recipient assures the State that it complies with the Americans with Disabilities Act (ADA) of 1990 (42 U.S.C. 12101, et seq.), which prohibits discrimination on the basis of disability, as well as applicable regulations and guidelines issued pursuant to the ADA. H. Union Activity By signing this Agreement, the Recipient hereby certifies that Recipient will not use grant funds for any expenses to assist, promote, or deter union organizing. Any Recipient that makes expenditures to assist, promote, or deter union organizing shall maintain records sufficient to show that state funds have not been used for those expenditures (Government Code Section 16645.2). Payment Costs for this Agreement shall be computed in accordance with State Administrative Manual Section 8752 and 8752.1. 25. Definitions A. Agreement Period is the length of this Agreement between the Energy Commission and the Recipient. The Recipient's Project may coincide with or extend outside the Agreement Period. B. Confidential Information any data or information that is proprietary to the Disclosing Party, allowed to be kept confidential under the California Public Records Act (Government Code §6250 et seq.) or other applicable law, and not publicly known at the time of disclosure to the receiving party. C. Copyrightable Work means any copyrighted work as defined under U.S. copyright law to which the Recipient, a Subcontractor, or a Match Fund Partner has acquired title that is first created in the performance of the Scope of Work under this Agreement and is not a scholarly work. D. Data means information, regardless of the form or medium including, but not limited to drawings, lists, findings, computations, notes, diagrams, data files, statistical records and other research data. E. Pre-existing Data means Data possessed or owned by the Recipient or by a third party (including Subcontractors) that exists prior to the Agreement start date or developed during the Agreement without Commission or Match Funds. EXHIBIT C F. Project -relevant Pre-existing Data means Pre-existing Data used by Recipient or Subcontractors in the performance of the Scope of Work conducted under this Agreement G. Project Data means Data that is first produced in the performance of this Agreement by Recipient, a Subcontractor or a Match Funds partner. Project Data does not include a researcher's laboratory notebook, but may include the Data contained therein. H. Deliverable Data means Project Data that is identified in the Scope of Work and required to be delivered to the Commission. Equipment is defined as having a useful life of at least one year, having an acquisition unit cost of at least $5,000, and purchased with Energy Commission funds. Equipment means any products, objects, machinery, apparatus, implements or tools purchased, used or constructed within the Project, including those products, objects, machinery, apparatus, implements or tools from which over thirty percent (30%) of the equipment is composed of Materials purchased for the Project. For purposes of determining depreciated value of equipment used in the Agreement, the Project shall terminate at the end of the normal useful life of the equipment purchased, funded and/or developed with Energy Commission funds. The Energy Commission may determine the normal useful life of such equipment. J. Key Personnel are employees of the Recipient who are both listed in the Agreement and critical to the outcome of the project. For example, they may have expertise in the particular field or have experience that is not available from another source. Replacing these individuals may affect the outcome of the project. K. Independently Funded Intellectual Property means Intellectual Property created, conceived, discovered, made, developed, altered, or reduced to practice by the Recipient or a third party during or after the Agreement term without Energy Commission or Match Funds, and any associated proprietary rights to these items that are obtained without Energy Commission or Match Funds, such as patent and copyright. L. Intellectual Property means inventions, technologies, designs, drawings, software, formulas, compositions, processes, techniques, works of authorship, trademarks, service marks, logos, and any associated proprietary rights to these items, such as patent and copyright, including and any upgrades or revisions to these items. M. Licensed Product means any product commercialized by a Licensee that embodies or utilizes Project Data, a Subject Invention, or Copyrightable Work. EXHIBIT C N. Licensee means the organization (or its affiliates, joint venture or sublicensee) that is granted commercial rights to Project Data, a Subject Invention or Copyrightable Work to develop any of these into a commercial product that is made available to the public in the marketplace or otherwise sold. O. Load -serving entity means a company or other organization that provides electricity to EPIC ratepayers. P. Match Funds means cash or in -kind (non -cash) contributions shown in the approved budget, Exhibit B, and provided by Recipient, Subcontractors, or other parties that will be used in performance of this Agreement. Q. Match Fund Partner means an entity providing Match Funds that does not receive any Commission funds. R. Materials means the substances used in constructing a finished object, commodity, device, article or product. S. Net Revenues means the total of the gross invoice prices of Licensed Product sold, less the sum of the following actual and customary deductions where applicable: cash; quantity discounts; sales, use, tariff, import/export duties or other excise taxes imposed upon particular sales; transportation charges, and allowance or credits to customers because of rejections or returns. T. Net Royalties means gross licensing income, including royalties and fees, received by UC from a Licensee as consideration for commercially licensing any Subject Invention, Copyrightable Work, or Project Data, less the following: Legal or other direct expenses (that are not otherwise reimbursed under an option or license agreement from a third party) of patenting, protecting and preserving patent, copyright and related property rights, maintaining patents and other such costs, taxes, or reimbursements as may be necessary or required by law, except patent infringement expenses; ii. Inventor or author shares in accordance with UC's, patent or copyright policy; and iii. Direct expenses include operating expenses of UC which are customarily reimbursed by royalty payments. Net Royalties do not include any payments to joint holders nor research funding accepted by Recipient or a Subcontractor in association with an option or licensing agreement. Net Royalties shall be aggregated cumulatively, over time for each disclosed Subject Invention, Copyrightable Work, or Project Data. U. Ownership means exclusive possession and control of all rights to property, including the right to use and transfer property. EXHIBIT C V. Subcontractor is the same as a Subrecipient and means an entity that is performing research and has received Agreement funds via a subaward arrangement appropriate for that entity from the prime UC location awarded this grant Agreement. A Subcontractor may include not -for -profit and for - profit organizations, Federal laboratories, or any part of the University of California, such as a campus or the Lawrence Berkeley National Laboratory. This definition does not include vendors providing goods and services. W. Key Subcontractor is a Subcontractor that is critical to the outcome of the project. For example, the Subcontractor may have expertise in the particular field or have experience that is not available from another source. Replacing these entities may affect the outcome of the project. X. Pre-existing Intellectual Property means Intellectual Property that the Recipient or a third party owned or possessed prior to the effective date of this Agreement and that have not been developed, altered, or reduced to practice with Energy Commission or Match Funds, and any associated proprietary rights to these items that are obtained without Energy Commission or Match Funds, such as patent and copyright. Y. Products means all tangible research products first made by Recipient, Subcontractors, or Match Fund Partners in the performance of this Agreement and specified for delivery to the Commission in the Scope of Work, but not a Subject Invention nor a Copyrightable Work. Z. Project refers to the entire effort undertaken and planned by the Recipient under this Agreement and consisting of the work co -funded in whole or in part by the Energy Commission. AA. Project -relevant Pre-existing Intellectual Property means Pre-existing Intellectual Property used by Recipient, Subcontractors, or Match Fund Partners in the performance of the Scope of Work conducted under this Agreement. BB. Project -relevant Independently Funded Intellectual Property means Independently Funded Intellectual Property used by Recipient, Subcontractors, or Match Fund Partners in the performance of the Scope of Work conducted under this Agreement. CC. Report means all required reports specified for delivery to the Commission in the Scope of Work. DD. Sale means the act of selling, leasing or otherwise transferring, providing, or furnishing for use for any consideration. Sell means to make or cause to be made a Sale. EE. Sold means to have made or caused to be made a Sale. FF. Sales Price means the price at which Licensed Product is sold, excluding sales tax. EXHIBIT C GG. Subject Invention means any patentable invention or discovery that is either: Conceived and first actually reduced to practice (actually reduced to practice or constructively reduced to practice by the filing of a patent application) in the performance of the Scope of Work; ii. Conceived in the performance of the Scope of Work and first reduced to practice in the performance of the Scope of Work conducted under this Agreement or within forty-two (42) months after the completion of the Scope of Work, iii. Conceived prior to the effective date of this Agreement or conceived without Energy Commission funds and reduced to practice in the performance of the Scope of Work, provided that such conception is not encumbered by any obligations owed to a third party other than the U.S. Government. HH. Technology refers to the general subject area where the product or innovation will be used. For example, solar thermal electric generation is a Technology area; direct steam generation is an innovation in this Technology area. II. Trade Secret is any formula, plan, pattern, process, tool, mechanism, compound, procedure, production data, or compilation of information which is not patented and which is generally known only to certain individuals with a commercial concern and are using it to fabricate, produce or compound an article of trade or a service having commercial value and which gives its user an opportunity to obtain a business advantage over competitors who do not know or use it. JJ. UC is used to refer to the one legal entity of The Regents of the University of California, or any subdivision or campus thereof. KK. Vendor. A dealer, distributor, merchant or other seller providing goods or services that are required for the performance of the Scope of Work. Vendors are not considered Subcontractors and are subject to the normal terms and conditions of the University's procurement process. LL. Key Vendor is a Vendor that is critical to the outcome of the project. For example, the Vendor may have expertise in the particular field or have experience that is not available from another source. Replacing these entities may affect the outcome of the project. EXHIBIT C EXHIBIT C - ATTACHMENT 1 Confidential Products and Project -Relevant Pre -Existing and Independently Funded Intellectual Property 1 Instructions'"- Identification of Confidential Information Prior to the effective date of the Agreement, the Recipient must identify in Section 2 of this attachment any products (or information contained within products) that it considers to be confidential. If the Energy Commission agrees that the information is confidential, it will not disclose it except as provided in Section 19 (Confidentiality) of these terms and conditions. During the Agreement, if the Recipient develops additional information not originally anticipated as confidential, it must follow the procedures for a request for designation of confidential information specified in Title 20 California Code of Regulations (CCR) Section 2505. The Energy Commission's Executive Director will make the confidentiality determination. Following this determination, the confidential information may be added to this attachment through a Letter of Agreement (see Section 6 (Amendments) and Attachment 2 (Sample Letter of Agreement)). The Energy Commission will not disclose information subject to an application for confidential designation except as provided in Section 19. • When submitting products containing confidential information, the Recipient must mark each page of any document containing confidential information as "confidential" and present it in a sealed package to the Contracts, Grants, and Loans Office. The Commission Agreement Manager may require the Recipient to submit a non - confidential version of the product, if it is feasible to separate the confidential information from the non -confidential information. Identification of Proiect-Relevant Independently Funded and Pre -Existing Intellectual Property The Recipient must identify all project -relevant pre-existing intellectual property and project -relevant independently funded intellectual property in Section 3 of this attachment prior to the effective date of the Agreement, or within sixty (60) days of becoming aware that the property has been or will be used to support a premise, postulate, or conclusion referred to or expressed in any product under the Agreement. This attachment may be amended by a Letter of Agreement (see Section 6 (Amendments) and Attachment 2 (Sample Letter of Agreement)). o "Project -relevant pre-existing intellectual property" and "project -relevant independently funded intellectual property" mean pre-existing and independently funded intellectual property used to support a premise, postulate, or conclusion referred to or expressed in any product under the Agreement. o "Pre-existing intellectual property" means: (a) inventions, technologies, designs, drawings, data, software, formulas, compositions, processes, techniques, works of authorship, trademarks, service marks, and logos that the Recipient or a third party owned or possessed prior to the effective date of this Agreement and that have not been developed, altered, or reduced to practice with Energy Commission or match funds; and (b) associated proprietary rights to these items that are obtained without Energy Commission or match funds, such as patent and EXHIBIT C copyright o "Independently funded intellectual property" means: (a) inventions, technologies, designs, drawings, data, software, formulas, compositions, processes, techniques, works of authorship, trademarks, service marks, and logos that are created, conceived, discovered, made, developed, altered, or reduced to practice by the Recipient or a third party during or after the Agreement term without Energy Commission or match funds; and (b) associated proprietary rights to these items that are obtained without Energy Commission or match funds, such as patent and copyright. "Works of authorship" does not include written products created for Agreement reporting and management purposes, such as reports, summaries, lists, letters, agendas, schedules, and invoices. The Commission owns such products regardless of their funding source. • Failure to identify project -relevant pre-existing or independently funded intellectual property in this attachment may result in the property's designation as "intellectual property" that is subject to licenses and royalties, as described in Sections 21 (Intellectual Property) and 22 (Royalty Payments to the Commission). EXHIBIT C The Energy Commission designates the following products (or information contained within products) as confidential, in accordance with Title 20 California Code of Regulations Section 2505(c)(2)(13). NONE Product name NA (Not Applicable) No Confidential Information included Task/subtask number Information to be kept ❑ Entire product confidential ❑ Selected information within product (describe below; be as specific as possible): Legal basis for ❑ California Public Records Act, located in California confidentiality designation Government Code Sections 6250 et seq. (identify the relevant section(s) and subsections(s) below): ❑ Other law (identify below, including the relevant section(s) and subsections(s)): Term of confidentiality MM-DD-YY to MM-DD-YY Trade secrets only Answer the following questions if the product/information described above is considered a trade secret (i.e., confidential business information that provides the business with a competitive advantage): 1. What is the nature of the competitive advantage provided by the product/information? 2. How would the competitive advantage be lost by disclosure? (generally describe the value of the product/information and the ease or difficulty with which it may be legitimately acquired or duplicated by others). EXHIBIT C NONE Name/Title of Intellectual Property NA (Not applicable) Type of Intellectual Property ❑ Project -relevant pre-existing intellectual property ❑ Project -relevant independently funded intellectual property ❑ Invention ❑ Process ❑ Technology ❑ Technique ❑ Design ❑ Work of Authorship ❑ Drawing ❑ Trademark/ Service mark ❑ Data ❑ Logo ❑ Software ❑ Formula Registered or Pending ❑ Copyright ❑ Patent ❑Trademark/ Service mark Intellectual Property (i.e., Name of owner: copyrights, patents, or Number and date: trademarks that are registered or pending with the U.S. For pending applications Copyright Office or the U.S. Name of applicant: Patent and Trademark Office) Application number and date: Unregistered Intellectual ❑ Copyright ❑ Trademark/ Service mark Property ❑ Trade Secret Name of owner: Description of how the property will be or has been used to support a premise, postulate, or conclusion referred to or expressed in any product under the Agreement EXHIBIT C RECIPIENT AGREEMENT NUMBER The Regents of the University of California, Irvine EPC-15-077 campus ADDRESS AGREEMENT TERM 6/15/2016 to 7/31 /2018 University of California, Irvine The effective date of this Agreement is either the start date or the approval date by the California Energy Commission, whichever is later. The Office of Research Administration California Energy Commission shall be the last party to sign. No work is 5171 California, Suite 150 authorized, nor shall any work begin, until on or after the effective date. PROJECT DESCRIPTION The parties agree to comply with the terms and conditions of the following Exhibits which are by this reference made a part of the agreement. Exhibit A — Scope of Work Page(s): 21 Exhibit A — Attachments Page(s): 2 Exhibit B — Budget Page(s): 27 Exhibit B — Attachments Page(s): 0 Exhibit C — General Terms and Conditions Page(s): 33 Exhibit C — Attachments Page(s): 4 Exhibit D - Contacts Page(s): 1 $ 175007000 $ 8107998 $ 2,310,998 The undersigned parties have read the attachments to this agreement and will comply with the standards and requirements contained therein. CALIFORNIA ENERGY COMMISSION RECIPIENT AUTHORIZED SIGNATURE DATE AUTHORIZED SIGNATURE DATE NAME Rachel L. Grant Kiley NAME TITLE Contracts, Grants and Loans Office Manager TITLE CALIFORNIA ENERGY COMMISSION ADDRESS 1516 9th Street, MS 1, Sacramento, CA 95814 EXHIBIT C California Energy C' mission, Recipient. Commission Agreement Manager: Project Manager: Rachel Salazar Jacob Brouwer California Energy Commission University of California, Irvine 1516 Ninth Street, MS-51 Irvine, CA 92697-3550 Sacramento, CA 95814 Phone: (949) 824-7302 ext 11-221 Phone: (916) 445-5316 Fax: (949) 824-7423 Fax: (916) 327-1353 e-mail: jbrouwer@uci.edu e-mail: Rachel.Salazar@energy.ca.gov Commission Agreement Officer: Administrator: Brad Worster Natalie Nodianos — Principal C&G Officer California Energy Commission University of California, Irvine 1516 Ninth Street, MS-18 Office of Research Administration Sacramento, CA 95814 5171 California, Suite 150 Phone: (916) 654-4299 Irvine, CA 92697-7600 Fax: (916) 654-4423 Phone: (949) 824-8109 e-mail: Brad.Worster@energy.ca.gov Fax: (949) 824-2094 e-mail: natalie.nodianos@uci.edu Accounting Officer: Accounting Officer: Eyob Zeleke Rebecca Tangen California Energy Commission UCI Contract & Grant Accounting 1516 Ninth Street, MS-2 1400 Biological Sciences III Sacramento, CA 95814 Irvine, CA 92697-1050 Phone: (916) 654-4871 Phone: (949) 824-6828 Fax: (916) 653-1435 Fax: (949) 824-3895 e-mail: Eyob.Zeleke@energy.ca.gov e-mail: rtangen@uci.edu Legal Notices: Legal Notices: Tatyana Yakshina Natalie Nodianos — Principal C&G Officer Grants Manager University of California, Irvine 1516 9th Street, MS-1 Office of Research Administration Sacramento, CA 95814 5171 California, Suite 150 Phone: (916) 654-4204 Irvine, CA 92697-7600 Fax: (916) 654-4076 Phone: (949) 824-8109 e-mail: Tatyana.Yakshina(c),energy.ca.gov Fax: (949) 824-2094 e-mail: natalie.nodianos@uci.edu Subaward No.: Reporting Period: Principal Investigator: UNIVERSITY OF CALIFORNIA, IRVINE OFFICE OF RESEARCH ADMINISTRATION INVENTION STATEMENT EXHIBIT D Invention was was not conceived or first actually reduced to practice in the performance of work during the subaward reporting period. EQUIPMENT REPORT Equipment was was not purchased during the subaward reporting period. If equipment was purchased during the subaward period, please provide the following information. Description of the equipment item Manufacturer, model number, and serial number Cost charged to the subaward Acquisition date Signature of Principal Investigator Date Signature of Authorizing Official Date EXHIBIT E SUBCONTRACTOR'S RELEASE Pursuant to the terms of Subcontract Number under prime Grant/Contract Number for the period through and in consideration of the sum of which has been paid under Subcontract to (hereinafter called the Subcontractor) or to its assignees, if any, the Subcontractor, upon payment of the said sum by THE REGENTS OF THE UNIVERSITY OF CALIFORNIA, University of California, Irvine (hereinafter called University) does remise, release, and discharge the University, its officers, agents, and employees, of and from all liabilities, obligations, claims and demands whatsoever under or arising from the said subcontract. IN WITNESS WHEREOF, this release has been executed this 20 Subcontractor By Title Certificate (To be completed by an officer other than the one certifying above.) certify that I am (Name of official) (Official Title) of the corporation named as subcontractor in the foregoing release, that (Official certifying above) who signed said release on behalf of the Subcontractor was then (Official Title) of said corporation; that said release was duly signed form and on behalf of said corporation by authority of its governing body is within the scope of its corporate powers. (Name and Title of Official Certifying this form) day of Date: , ,.�.....�_.a., Total Award A Voucher Number: Subcontractor: I Remittance Address: F Subcontract No. Contractor Contractor's Fund Number Period of Claim Remittance Information: Federal Tax I.D. Accounts Receivable Contact Telephone # Maior Cost Elements Salaries and Wages Supplies and Expenses Equipment/Facilities Travel Employee Benefits Other T.. a_I /`....a Previously Claimed Current Claim The Regents of the University of California Current Period EXHIBIT F SAMPLE INVOICE Cumulative to Date Certification: By signing this report, I certify to the best of my knowledge and belief that the report is true, complete, and accurate, and that all expenditures, disbursements and cash receipts are for the puposes and objectives set forth in the terms and condition of the award. I am aware that any false, ficticious, or fraudulent information, or the omission of any material fact, may subject me to criminal, civil or administrative penalties for fraud, false statements, false claims or otherwise. (U.S. Code Title 18, Section 1001 and Title 31, Sections 3729-3730 and 3801-3812). Subrecipient Official Authorized Date UCI Principal Investigator Signature of Approval Date University of California, Irvine Grace J. Park, J.D. Subcontract Manager Sponsored Projects Administration Office of Research 141 Innovation, Suite 250 Irvine, CA 92697-7600 (949) 824-7218 (949) 824-2094 (Fax) parkgj@uci.edu www.research.uci.edu Dept. ID AD-16-029 Page 1 of 3 Meeting Date: 11/7/2016 A.�.�.c�� CITY OF HUNTINGTON BEACH REQUEST FOR. CITY COUNCIL ACTION MEETING DATE: 11/7/2016 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Antonia Graham, Assistant to the City Manager SUBJECT: Approve and accept California Energy Commission (CEC) Grant Funding Support in the amount of $90,000 through the University of California Irvine (UCI) for the Electric Power Investment Program Challenge (EPIC): Accelerating the deployment of Advanced Energy Communities (AEC); and, approve appropriation of grant funds received Statement of Issue: In December 2015, the University of California Irvine (UCI) Advanced Power and Energy Program (APEP) approached the City to partner on a grant application through the California Energy Commission (CEC) and the Electric Power Investment Program (EPIC) to create an advanced energy community within the City. In March 2016, UCI was notified that the CEC had selected the UCI Team to complete a major applied research project to accelerate the deployment of Advanced Energy Communities (AEC). This Request for Council Action formally accept the City's portion of grant funds in the amount of $90,000 from UCI to fund Phase I of the EPIC Challenge. Financial Impact: The City will receive $90,000 from the California Energy Commission via the University of California Irvine. There is no requirement for matching funds. Recommended Action: A) Authorize the City Manager or his designee to accept grant funds from the California Energy Commission through the University of California Irvine; and, B) Authorize the City Manager or his designee to execute the grant sub -contract by and between the City of Huntington Beach and the University of California Irvine; and, C) Accept the grant funds in the amount of $90,000 and appropriate the funds for the EPIC Challenge Program. Alternative Action(s): Do not approve and direct staff how to proceed. Analysis: The City of Huntington Beach has been a leader in energy efficiency, leading the way for many neighboring municipalities. The City's efficiency efforts have received awards from many local, regional, and national organizations. Additionally, these efforts have garnered attention from the Department of Energy, the National Renewable Energy Laboratory, and local universities. The H B -12 7- Item 6. - I Dept. ID AD-16-029 Page 2 of 3 Meeting Date: 11/7/2016 success of many of our efficiency initiatives is what led the team at UCI to contact the City and seek a partnership on the EPIC Challenge. The EPIC program was established in 2012 by the California Public Utilities Commission and is administered by the CEC. The program provides funding for applied research and development, technology, demonstration and deployment, and market facilitation for clean energy technologies. The specific funding opportunity through the EPIC Program that UCI and the City were successful in obtaining was through the EPIC Challenge: Accelerating the Deployment of Advanced Energy Communities. The purpose of the solicitation is to fund a competition that will challenge project teams to develop innovative and replicable approaches for accelerating the deployment of Advanced Energy Communities (AEC). The City was one of four communities chosen from Southern California to compete. The only other City within Orange County to have received an EPIC Challenge Grant in recent years was the City of Lake Forest in 2015. The City is part of team UCI, a built environment technology developer (Altura Associates, Inc.), the investor -owned utilities (SCE and Southern California Gas Company), and a national laboratory (National Renewable Energy Laboratory) to address the EPIC Challenge — to develop innovative and replicable approaches for accelerating the deployment of AEC in SCE and Southern California Gas Company service territories. The project teams that develop the best approaches will then be eligible to compete for the second phase of additional funding to fully realize (implement and construct) their vision of an AEC. Advanced Energy Communities are communities that: • Minimize the need for new energy infrastructure costs such as transmission and distribution upgrades. • Provide energy savings by achieving and maintaining zero net energy community status (accounting for behavior and increasing loads from vehicle and appliance electrification). • Support grid reliability and resiliency by incorporating technologies such as energy storage. • Provide easier grid integration and alignment with the California Public Utilities Commission's (CPUC) Long -Term Procurement Plan, and the California Independent System Operator's local capacity requirements process. • Are financially attractive from a market standpoint (developers, home buyers, renters). • Provide affordable access to renewable energy generation, energy efficiency upgrades, and water efficiency and reuse technologies that reduce electricity consumption for all electric ratepayers within the community. • Makes use of smart -grid technologies throughout the community. Projects will be funded in two phases. Phase I focuses on the development of innovative planning, permitting, and financing approaches for Advanced Energy Communities, as well as the development of a real world conceptual design of an Advanced Energy Community. Recipients of Phase I funding will be eligible to compete for Phase II funding, which will support the build -out of an Advanced Energy Community that was proposed during Phase I. Together with funding and support from Southern California Edison and Southern California Gas Company the team will receive a total of $1.9 million to develop and apply master community design tools and to integrate innovative, high efficiency, and sustainable energy technologies into Huntington Beach's Oak View neighborhood. This neighborhood was chosen because the requirements of the program called for these technologies to be studied in a disadvantaged community. The City will receive $90,000 to coordinate collaboration with community groups and residents, and will provide detailed information on existing community energy usage, provide information on energy infrastructure, and activities that occur in the community; which includes City facilities. Staff Item 6. - 2 HB -128- Dept. ID AD-16-029 Page 3 of 3 Meeting Date: 11/7/2016 and the UCI project team have already met with private property owners and the non-profit housing partners in the Oak View neighborhood. The property owners recognize the benefits of reducing energy usage and creating job opportunities through the workforce development component of the grant. The research from this project will enable the City to take the findings and apply for funding from other federal, state, and local agencies, like the South Coast Air Quality Management District, to apply for projects throughout the City. Environmental Status: The project involves a grant to conduct a study and develop a plan to convert communities, including the Oak View community of Huntington Beach, into an Advanced Energy Community. The project is exempt pursuant to the California Environmental Quality Act (CEQA) Guidelines Section 15262, which exempts projects involving only feasibility or planning studies for possible future actions which the City has not approved, adopted, or funded, does not require the preparation of an EIR or Negative Declaration, and does not have a legally binding effect on later activities. The project does not propose construction or physical development and, as such, would not reuslt in adverse physical changes in the environment. The project would not legally require or commit the City to going forward with any project or plan identified in the study. It should be noted that future projects, as defined by CEQA, identified in the study would be subject to environmental review pursuant to CEQA if and when they go forward as a proposed project. Strategic Plan Goal: Improve quality of life Attachment(s): 1. Award Notification from the California Energy Commission 2. Draft Subcontract Between the Regents of the University of California and the City of Huntington Beach 3. Letters of Support HB -129- Item 6. - 3 M I � � f."Tol � E, I - iy� I 14: L, STATE OF CALIFORNIA— NATURAL RESOURCES AGENCY EDMUND G. BROWN JR., Governor CALIFORNIA ENERGY COMMISSION 1516 NINTH STREET SACRAMENTO, CA 95814-5512 www.energy.ca.gov NOTICE OF PROPOSED AWARD (NOPA) The EPIC Challenge: Accelerating the Deployment of Advanced Energy Communities GFO-15-312 March 25, 2016 On November 24, 2015, the California Energy Commission released a competitive solicitation titled "The EPIC Challenge: Accelerating the Deployment of Advanced Energy Communities" under the Electric Program Investment Charge (EPIC) Program. The purpose of this solicitation is to fund a competition that will challenge project teams comprised of building developers, local governments, technology developers, researchers, utilities, and other project partners to develop innovative and replicable approaches for accelerating the deployment of Advanced Energy Communities. Up to $48,253,180 million in EPIC funding is available for grants awarded under this solicitation. This NOPA identifies selected projects for Groups 1 to 4. An amendment to this solicitation manual with additional details and criteria for Phase II will be provided at a future date. Eligible applicants will be required to submit a new proposal that meets the additional criteria of the Phase II solicitation manual amendment. The Energy Commission received ten proposals for Group 1, seven proposals for Group 2, five proposals for Group 3, and six proposals for Group 4 by the due date of February 17, 2016. The proposals were screened, reviewed, evaluated and scored using the criteria in the solicitation. The attached "Notice of Proposed Award" identifies the Applicants that are recommended for funding by Energy Commission staff and includes the recommended funding amount and score. The total amount recommended for Group 1 is $5,813,555. The total amount recommended for Group 2 is $2,957,388. The total amount recommended for Group 3 is $4,156,030. The total amount recommended for Group 4 is $5,997,996. Funding of the proposed projects resulting from this solicitation is also contingent upon the approval of the projects at a publicly noticed Energy Commission Business Meeting and execution of a grant agreement. If the Energy Commission is unable to timely execute a funding agreement with the Applicant, the Energy Commission, at its sole discretion, reserves the right to cancel or otherwise modify the pending award. This notice is being mailed to the Applicants of this solicitation and is also posted on the Energy Commission's website at: www.energV.ca.gov/contracts/. For information, please contact Janna Franks by phone at (916) 654-4921 or by email at Janna.Franks@energy.ca.gov. 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Li E E O O (J y mof (u C C W 3 LL tr)- O O V LO O Lr O Ln LL. O O O L' ei r- r, u'1 N �'+ C O "O N VI V E Ul E a O (u to c W � U v U u (0 o_ Y •E n v Y � E N :E E O u U v > O N H a cu m E c w a a u c E on > E •n a O u w "O 6 @ Y Q/ Z 0 m o0 H O t a N u K Y T C C a-u, CL v u E E C O Q C.1 c — z o = 0)0 >o 3 Q v o o v a ID E Oi "- N '-. w co a` o s z o 0 a m J U O L a` v Y a @ E , N m u O v (0 0 N �T+ .E E v E Y O H � U c o_ > 00 0 0_ v w a` u co = Y O O v co 2c > > N (o 0_ O] U C C u - O O. a (o V 0 U U c Q N U ^ 0 v N C a v r_ a O o .4 0 .. c > > Za a Q LA M � � 1' 7 O Z HB -134 O a C 0 Ln Ln C M E 4- f0 U No O N O uY 0 C N p. d O U 0 O cc� N ( G U 0 0 z 3 N '6 @ v v N 0) N v N a) a 3 3 3 3 a a a a CT) m v m o rn `o u n r n n v n N N O M O) w V O Ol Ol M' c-i O tD O Q) iy u) M N V1 O) cl W I, rl L Y iy CM Ln O N O O O Q1 •V�i y O) O O O Q1 • E V Lfl i1) i1) Q1 t/T t/T t/T t/T Ln 0 0 v v y N N "O C w 3 LL O) Ol O O O O O O Q) C LL N O O O Q1 0 v Lr L' L' rn .--i c-i .--i Ln N.--i N vlT t/T t/T t/T 4A N E O! E 0 v OyTO C W v .� twtw 9 T O c aj > c v aj U a -- w e E Y E o c w v 0 = = U E Y > O E o u a 3 0 Q E M E a) ° C `n W O n > v ~ TbD O c W O u O 2 Q � E ro z ro M > > c > v M Y O U (9 Q p > ro ED u O O (/) O O w Q T O L u N Q Y W U Y m Cl) m � Caj Y Caj >->-0 _ @ C b0 u 7 E C C O y b0 0 °) s v E p C W O v E E ,C c Q ~ a E v> v E E Q m u w a) H U U 2 co Y E M U C u N b0 N •Q Y p Y O 3u N m 2 T O , ° °°>�_ Y_ v '0 C v O v � ._ C O Y � a, to a b0 m C W > @ O > o '> w 0 C C Cl Q o �> a) C7 Cl U Q u a` a y � � M E c N M C L Z 3 M f0 VI VI Y T 2 Y 2 Y MO O 3 z z 0 0 v 00 u N 1l n Q) rl O C .I O lD tD Ln M M N Ly M M 00 L M U N Ln CM C C Q) w O p Q1 v Q1 E E E 4 0 u ah v v y N N "O C C w 7 LL � O 14 Q1 C V O V N o rn a �i C CT) m Lr v' N 0 "0 N Q1 N Y M E O! E 0 v T C W 7 Y E H � U T C W b d � Y � y 0 C O E o � Z Y T C M u Q Q U N u a u a° 0 O a. o a E fa v 6 Z U — ;a @ 0 0 3 m E c O Z fy6 11B -13-5- Item 6. - 9 ATTACHMENT #2 SUBCONTRACT No. 2016- BETWEEN THE REGENTS OF THE UNIVERSITY OF CALIFORNIA AND CITY OF HUNTINGTON BEACH Subcontract No. ("Subcontract" ) is entered into , 2016 between The Regents of the University of California, a corporation of the State of California, on behalf of its Irvine campus (herein after referred to as "University") and City of Huntington Beach (hereinafter referred to as "Subcontractor") for the delivery of services identified as defined in Article IA, STATEMENT OF WORK, and in accordance with the terms and conditions set forth herein. This Subcontract is awarded under the authority of Prime Award No. EPC-15-077 ("Prime Award") issued by California Energy Commission ("Commission"). SUBCONTRACT SCHE DULE ARTICLE 1 PERFORMANCE AND DELIVERY A. STATEMENT OF WORK The statement of work to be performed under this Subcontract is described in Exhibit A. B. KEY PERSONNEL The key personnel representing the University and the Subcontractor shall be as follows: Principal Investigator for University: Dr. Jack Brouwer, University of California Irvine Key Investigator for Subcontractor: Antonia Graham, City of Huntington Beach In the event a change in Key Investigator is necessary, the University will be notified NvitMn thirty (30) days after the Subcontractor reasonably knows the change is necessary. C. PERIOD OF PERFORMANCE The period of performance of this Subcontract shall be through D. TOTAL ESTIMATED COST It is estimated that the total cost to the University for performance of this Subcontract shall not exceed $90,000. Subcontractor shall cost share in the amount of $152,900 in the form of salaries and benefits. E. DELIVERY All materials and services called for under this Subcontract shall be completed and delivered to the University on or before unless extended by prior written authorization. Item 6. - 10 D0/1462801Do HB -136- ARTICLE 2 COST, PAYMENT AND BILLING A. ALLOWABLE COSTS AND FEES Allowable costs and fees eligible for reimbursement to the Subcontractor for performance of this Subcontract shall be determined in accordance with: a. The budget, attached hereto and incorporated herein as Exhibit B. b. The terms of this Subcontract. c. The Prime Award attached hereto and incorporated herein as Exhibit C. B. REBUDGETING Funds may be rebudgeted between components without prior approval except where prior approval is specifically required by the applicable terms and conditions. Any restriction on rebudgeting listed elsewhere in this Subcontract, however, shall take precedence over the above indicated authorities and policies. Rebudgeting requests which require Prime Award approval should be directed to the University's Principal Investigator for approval and then forwarded to the University's Office of Research Administration, Sponsored Projects Administration for administrative endorsement and transmittal to the prime agency for approval. C. PAYMENT Payment will be made by the University to the Subcontractor during the term of this Subcontract, but no more frequently than monthly, consistent with the provisions of Article 2A, upon presentation of the Subcontractor's invoice. The University shall not pay any invoice where total payments would result in a cumulative payment in excess of the limitations imposed by Article I D or where rates used to determine costs vary from those (if shown) in Article 2A. The University, at its option, may elect to pay any invoice in accordance with Article 2A if the invoice is at variance with the article or may return the invoice unpaid to the Subcontractor for correction and resubmittal. All payments made are provisional, subject to acceptance (Article 7A), post -audit, and adjustment. All Subcontract expenditures must occur within the approved period of performance of this Subcontract. D. BILLING Invoices (Exhibit F) shall be submitted as follows: 1. No more frequently than month. 2. Referencing the Subcontract number and numerical sequence of the invoice. 2 t 6-550on46280/Do H B -137- Item 6. - 11 3. Providing detail of expenditure in accordance with the budget categories listed. 4. Addressed to: University of California, Irvine Advanced Power & Energy Program 221 Engineering Lab Facility Irvine, CA 92697-3500 Attn: Jeff Wojciechowski 0,",ojciec@uci.edu) Fund No. ARTICLE 3 PATENT RIGHTS A. Pre -Existing Intellectual Property, Independently Funded Intellectual Property, and Pre- existing Data Ownership Subcontractor agrees that if patentable discoveries or inventions are made and/or conceived or for the first time actually reduced to practice by the Subcontractor or its employees under the terms of this Subcontract, Subcontractor shall promptly furnish University with complete information thereon. Disposition of all subject inventions will be made in accordance with the provision of the Prime Award. 2. Project -relevant Pre -Existing Intellectual Property, and Project -relevant Independently Funded Intellectual Property (collectively, "Project -relevant Intellectual Property") and Project -relevant Pre-existing Data 3. a. Identification of Project -relevant Intellectual Property and Project -relevant Pre- existing Data i. All Project -relevant Pre-existing Intellectual Property of Key Personnel that is owned or controlled by Subcontract is listed in Attachment I of the Prime Award Agreement attached hereto as "Subcontract #2016-3355 Exhibit C." Within forty-five (45) days of becoming aware that additional Project -relevant Pre-existing Intellectual Property of Key Personnel that is owned or controlled by Recipient has been or will be used in the performance of this Subcontract, Subcontractor will notify the University. Attachment 1 of the Prime Award Agreement ("Attachment 1") may be amended by a Letter of Agreement. ii. All Project -relevant Independently Funded Intellectual Property of Key Personnel that is owned or controlled by the Subcontract and the source of funding for such Intellectual Property is described in Attaclunent 1 of the Prime Award Agreement. Within forty-five (45) days of becoming aware that additional Project -relevant Independently Funded Intellectual Property of Key Personnel that is owned and controlled by Subcontractor 3 Item 6. - 12 00/146280/Do HB -13 a- has been or will be used in the performance of this Subcontract, Subcontractor will notify the University. Attachment I of the Prime Award Agreement may be amended by a Letter of Agreement. iii. During the term of this Subcontract, Subcontractor will use reasonable efforts to notify the University of any Project -relevant Intellectual Property of Key Personnel that is owned or controlled by the Subcontractor that Subcontractor becomes actually aware of, with the qualification that Subcontractor is not in a position to guarantee that all potential Project -relevant Intellectual Property has been identified. iv. If Subcontractor will be using Project -relevant Pre-existing Data of Key Personnel that is owned or controlled by Subcontractor in the performance of this Subcontract that have restrictions on use, such data and use restrictions will also be identified in Attachment 1 of the Prime Award Agreement, which may be amended by a Letter of Agreement. b. Access to Project -Relevant Intellectual Property and Project -relevant Pre-existing Data The University may access Project -relevant Intellectual property identified in Attachment 1 of the Prime Award Agreement, and Project -relevant Pre-existing Data of Key Personnel that is owned or controlled by Subcontractor, whether or not it is identified in Attachment 1, but only to the extent that such access to limited to that reasonably necessary to: (a) demonstrate the validity of any premise, postulate, or conclusion referred to or expressed in any product or report; or (b) establish a baseline for repayment purposes. No express or implied licenses or other rights are provided to the University under any patents, patent applications, or other proprietary rights of the Subcontractor. Upon the University's request, the Subcontractor will provide the University -with access to review the Subcontractor's Project -relevant Intellectual Property and Project -relevant Pre-existing Data. If such Project -relevant Intellectual Property or Project -relevant Pre-existing Data has been designated as Confidential Information, the University will only disclose it under the circumstances specified in Title 20 CCR Sections 2506, 2507, and 2508. c. Preservation of Project -Relevant Intellectual Property The Subcontractor will preserve any of its Project -relevant Intellectual Property at its own expense for at least five (5) years fiom the Subcontractor's end date or until the timeframe in Subcontractor's retention policy, whichever is longer. Notwithstanding the foregoing, Subcontractor has the sole right but not the obligation to prosecute or maintain patent protection for any of its Project - relevant Intellectual Property and Project -relevant Pre-existing Data in Article 3(A)2.b. 4 16-5500/146280/Do 11B _1;g_ Item 6. - 13 B. Intellectual Property Ownership Except as otherwise specified in this Subcontract, the Subcontract owns all Intellectual Property created, conceived or reduced to practice, discovered, made, developed, or altered by Subcontractor in the performance of this Subcontract. 2. Data Rights a. Pre-existing Data that will be included as a deliverable under this Subcontract will be identified in Attachment 1. If the University provides its own pre-existing data, the University shall mark all such data, and Subcontractor may only use it for purpose of the Statement of Work of this Subcontract, unless such data is otherwise publicly available. b. At the University's expense for actual cost of duplication and delivery, Subcontractor shall deliver additional Project Data that is specifically requested by the University. The University shall have the unrestricted right to use the Deliverable Data and delivered Project Data, subject to applicable pre-existing use and disclosure restrictions identified in Attachment 1 and other provisions in this Subcontract, including but not limited to Confidentiality—. Section 19 "Confidentiality" of Prime Award EPC--15-086 is incorporated into this Subcontract by reference and made part of it as if set forth in full. d. The Subcontractor shall have the unrestricted right to use Project Data, subject to applicable use and disclosure restrictions identified in Attachment 1 and other provisions in this Subcontract, including but not limited to Confidentiality. 3. Copyrights a. All rights to Copyrightable Works other than Reports first created by the Subcontractor are the property of the Subcontractor. Unless pre-existing restrictions are listed under Attachment 1, the Subcontractor grants the State of California, including the Commission, a fully paid -up, royalty -free, non- exclusive, non -transferable, non-sublicensable, irrevocable license to reproduce, prepare derivative works, distribute copies, perform publicly, and display Copyrightable Works specified for delivery in the Statement of Work. b. Notwithstanding 2.a. above, when the purpose of the Statement of Work is specifically to create a Copyrightable Work for use by the Commission and that fact is indicated in the Statement of Work, then all rights in such Copyrightable Work will be the property of the Commission. The Commission grants to Subcontractor a fully paid -up, royalty -free, non-exclusive, non -transferable, non- sublicensable, irrevocable license to reproduce, prepare derivative works, 5 ooi146280mo Item 6. - 14 H B -140- distribute copies, perform publicly, and display publicly such Copyrightable Work for educational and research purposes and to allow other educational and nonprofit institutions to do so for educational and research purposes. c. Upon written request and subsequent amendment, the University may request delivery of computer software that is not identified as a Product, but was first created by the Subcontractor in the performance of the Statement of Work. To the extent the Subcontractor is legally able to do so, Subcontractor shall grant the state of California, including the Commission, a fully paid -up, royalty -free, nonexclusive, non -transferable, non-sublicensable, irrevocable license to reproduce, prepare derivative works, distribute copies, perform publicly, and display publicly such software, if any, identified Attachment 1. d. Copyrightable Works that may be patentable are also subject to the Patent Rights clause, which will take precedence in case of a conflict. e. The Commission may direct Subcontract to issue a no -cost, non-exclusive, non- sublicensable, irrevocable, royalty -free, worldwide, perpetual license to Copyrightable Works described in subparagraphs a. and b. above to Load -serving entities and/or the third parties working with a Load -serving entity, for the Load - serving entity's use in enhancing its service to EPIC ratepayers. This license is for non-commercial purposes, meaning that it does not allow Load -serving entities to sell, commercially offer or distribute Copyrightable Works to others or in marketplace. For example, if the Subcontractor creates Copyrightable software, the Commission can give a Load -serving entity the right to use the software as part of its operations providing service to EPIC ratepayers, but the Load -serving entity cannot sell or distribute the software. 4. Patent Rights a. Subject to the requirement of law, all rights to any Subject Inventions shall belong to the Subcontractor. The State of California, including the Commission, shall have a no -cost, non-exclusive, non -transferable, non-sublicensable, irrevocable, royalty -free, worldwide, paid -up license to practice, or have practiced, such Subject Invention for governmental purposes, including the Commission's . statutory objectives. A confirmatory license will be executed by the Subcontractor to provide said license to any such Subject Invention, within ninety (90) days after filing for patent application. Notwithstanding the foregoing and except if the Commission exercises March -in Rights, Subcontractor has the sole right but not the obligation to prosecute or maintain patent protection for any Subject Invention and any time. b. The Commission may direct Subcontract to issue a no -cost, non-exclusive, non- sublicensable, irrevocable, royalty -free, worldwide, paid -up license to Subject Inventions to Load -serving entities and/or the third parties working with a Load - serving entity, solely to practice Subject Invention for non-commercial purposes, 6 16-5500/146280/DO H g - 1 4 1 - Item 6. - 15 so as to enhance the Load -serving entities' service to EPIC ratepayers. This license is for non-commercial purposes, meaning that it does not allow Load - serving entities to sell, commercially offer or distribute patentable works to others or in marketplace. For example, if the Subcontractor creates patentable software, the Commission can give a Load -serving entity the right to use the sofhvare as part of its operations providing service to EPIC ratepayers, but the Load -serving entity cannot sell or distribute the software. c. If any Subject Invention that is subject to the licenses above has been designated as Confidential Information as specified herein, alf license holder will only disclose the Subject Invention under the circumstances specified in Title 20 CCR Sections 2506, 2507, and 2508. All license holders will ensure that their officers, employees, and subcontractors who have access to the Subject Invention are informed of and abide by the disclosure limitations indicated in the Confidential Information terra. 5. Commission's Right to Subject Inventions a. March -in Right With respect to any Subject Invention in which Recipient has title and to the extent permissible under Federal laws and regulations, the Commission shall have the right to require Subcontractor or Subcontractor's Licensee to grant a nonexclusive, partially exclusive, or exclusive license in any field of use to a responsible applicant, upon terms that are reasonable under the circumstances, if the Commission determines that: (i) the Subcontractor or Subcontractor's Licensee has not taken, or is not expected to take within a reasonable time, effective steps to achieve practical application of the Invention; or (ii) action is necessary to alleviate health or safety needs that are not reasonably satisfied by Subcontractor or Subcontractor's Licensee. If the Subcontractor or Subcontractor's Licensee refuses such request, the Commission may grant such a license itself. The parties may refer to the Federal Government's procedures for handling march -in rights. b. Notice of Patent If any patent is issued for a Subject Invention, the Subcontractor will send the University written notice of the issuance within two (2) months of the issuance date. The notice include the patent title, issuance number, and a general description of the Subject Invention. c. Legal Notice The Subcontractor and all persons and/or entities obtaining an ownership interest in Subject Inventions must include the following statement within the specification of any United States patent application, and any subsequently issued patent for the invention: Item 6. - 16 00na6280/DO HB -142- "This invention was made with State of California support under California Energy Commission grant number EPC-15-086. The Energy Commission has certain rights to this invention." 6. Access to and Preservation of Subject Inventions and Copyrightable Works a. Access Upon the Commission Agreement Manager's request, the Subcontractor will provide the Commission Agreement Manager and any individuals designated by the Commission or the CPUC with access to the Subcontractor's Subject Inventions and to Copyrightable Works which are subject to Article 3(3)a. and b., in order to exercise the licenses described above, and to determine any royalty payments due under the Subcontract. b. Preservation The Subcontractor will preserve Subject Inventions and Copyrightable Works which are subject to Article 3(3)a, and b., in order to exercise the licenses described above, at its own expenses for at least ten (10) years from the Subcontract's end date or until the timeframe in Subcontractor's retention policy, whichever is longer. Notwithstanding the foregoing, Subcontractor is not obliged under this Subcontract to obtain or maintain any intellectual property protection for Subject Inventions. Subcontractor has the sole right but not the obligation to file a patent application for a Subject Invention, but Subcontractor will file and prosecute a patent application for any Subject Invention which a Licensee has a license under Article 3(4)b., upon written request by such Licensee and at Licensee's expense. C. Royalty Payments to the Commission In consideration of the Commission providing funding for the Prime Award, Subcontractor agrees to pay the Commission a portion of either Net Revenues or Net Royalties under the terms and conditions hereinafter set forth. If federal funds are used in the conception or reduction to practice of a Subject Invention, such Net Revenues or Net Royalties calculation made for the Subcontractor's prior fiscal year. Subcontractor agrees to pay to Commission an amount equivalent to 10% of the total cumulative Net Royalties, less payments made by Subcontractor to Commission in previous years when Net Royalties were positive. Payments shall be made by check and made payable to the California Energy Commission, EPIC Fund. 2. Net Revenue. If the Subcontractor is a licenses, the Subcontractor's obligation to make payments to the Commission shall commence upon the first sale of the Licensed Product. Payments are payable in annual installments and are due the first day of March for the prior fiscal year of the Subcontractor and extend until ten (10) years from the 8 16-55001146280/DO HB -143- Item 6. - 17 Subcontract's end date. Subcontractor agree to pay an amount equivalent to 1.5% of the Net Revenues by check made payable to the California Energy Commission, EPIC Fund. D. If a Licensed Project was developed in part with Match Funds during the Subcontract term, the Net Royalty payments will be reduced in accordance with the percentage of such development activities that were funded with Match Funds. For example, if 20% of the development activities that were funded with Match Funds during the Subcontract and total cumulative Net Royalties equaled $100,000 in one year, the Subcontractor would owe the Energy Commission $8,000 for the year (10% of $100,000 = $10,000; 80% of $10,000 = $8,000 (the 80% coming froin 100% - 80% in match funds)). If the Energy Commission is providing funds to the Subcontractor under this Subcontract as a project match partner and Energy Commission funds are used in part to develop a Licensed Project, the Net Royalty payments will be reduced in accordance with the percentage of such development activities that were funded with non -Energy Commission funds during the Subcontract term. For example, if 80% of the development activities were funded with Subcontract and/or third party funds during the Subcontract and Net Royalties totaled $100,000 in one year, the Subcontract would owe the Energy Commission $2,000 for the year (10% of $100,000 = $10,000; 20% of $10,000 = $2,000 (the 20% coming from 100% - 80% in match funds)). E. Unless the Subcontractor makes an early buyout, total Net Royalty or Net Revenues payments will be limited to three (3) times the amount of funds paid by the Energy Commission under the Subcontract. The Subcontract may make an early buyout payment to the Energy Commission without a prepayment penalty, as an alternative to making annual royalty payments for ten (10) years following the Subcontract's end date. The payment must be in a lump sum amount equal to one and a half (1.5) times the amount of funds paid by the Energy Commission under the Subcontract and made within five (5) years of the Subcontract's end date. The payment amount due under the early buyout option will not be reduced by the percentage of Match Funds as described above. F. Subcontractor agrees not to make any sale, license, lease, gift or other transfer to any Project Data Subject Invention, Copyrightable Work or Licensed Project with the intent of, or for the purpose of, depriving Commission of Net Royalties or Net Revenues hereunder Generally this means that the Subcontract will not make any sale, license, lease or other transfer of Project Data, Subject Invention, Copyrightable Work or Licensed Product for consideration other than fair market value except for research, educational, or other mutually agreed to purposes intended to serve the public benefit. G. The Subcontractor shall maintain separate accounts within their financial and other records for purposes of tracking royalties and revenues due to the Commission under this Subcontract. H. Audits on Payments to Commissions. Payment to the Commission are subject to the Audit clause. 9 Item 6. - 18 00n46280/Do H13.144- I. Defaults. In the event of default hereunder, the Commission shall be free to exercise all rights and remedies available to it herein, and under law and at equity. The Subcontractor's failure to pay when due, any amount due and payable under the terms of this Subcontract constitutes a default under this Subcontract. ARTICLE 4 PUBLICATIONS, COPYRIGHTS AND RIGHTS TO DATA Prior review by University's Principal Investigator shall be obtained by Subcontractor for publication of any research report or other publication resulting from work performed on this Subcontract. Decisions about authorship on all publications resulting from work under the Prime Award and this Subcontract shall be made by University's Principal Investigator and Subcontractor's Key Investigator, prior to any such publication. Two reprints of publications resulting from work performed in whole or in part under this Subcontract shall be submitted to University's Principal Investigator. Except as otherwise provided in the conditions of the Prime Award, when publications or similar materials are developed from work supported in whole or in part by this Subcontract, the author is free to arrange for copyright without approval. A copy of such material shall be provided to University. University shall have the right to publish, disclose, disseminate and use, in whole or in part, any data and information received or developed under this Subcontract. ARTICLE 5 ADVERTISING AND PUBLICITY Neither the Subcontractor nor the University will use the name of the other, either expressly or by implication, in any news, publicity release, or other fashion without the express written approval of the other party of this Subcontract. ARTICLE 6 ACKNOWLEDGMENT An acknowledgment of University and Prime Award support and a disclaimer must appear in the publication of any material, whether copyrighted or not, based on or developed under this Subcontract, in the following terms: This material is based on work supported by California Energy Commission under Prime Award no. and The Regents of the University of California. All materials except scientific articles or papers published in scientific journals must also contain the following: 10 16-5500/146280/Do HB -145- Item 6. - 19 Any opinions, findings, and conclusions or recommendations expressed in this publication are those of the author(s) and do not necessarily reflect the views of California Energy Commission or The Regents of the University of California. ARTICLE 7 ACCEPTANCE AND REPORTS A. INSPECTION AND ACCEPTANCE All work performed under this Subcontract is subject to inspection and acceptance by the University or its authorized representative. B. TECHNICAL REPORTS AND DOCUMENTS Technical progress reports are due on -- basis. Any reports required by this Subcontract shall be due within thirty (30) days of the date of formal request. Inspection and acceptance for all reports and documents called for under this Subcontract shall be at the following address: University of California, Irvine National Fuel Cell Research Center 221 Engineering Laboratory Facility Irvine, CA 92697-3975 Attn: Professor Jacob Brouwer C. CLOSE-OUT Subcontractor shall submit Patent Statement and Equipment Report (Exhibit D) and Subcontractor's Release documents (Exhibit E) no later than sixty (60) days after termination of this Subcontract to the billing address in order to fulfill the reporting requirements of the Prime Award. ARTICLE 8 SPECIAL PROVISIONS A. RECORDKEEPING, COST ACCOUNTING, AUDIT 1. Cost Accounting Subcontractor agrees to keep separate, complete, and correct accounting of the costs involved in completing the Subcontract and match funded (if any) portion of this project. Financial records, supporting documents, and all other records pertinent to this Subcontract shall be retained for a period of four (4) years from the date of termination of this Subcontract. The University shall have the right to examine Subcontract's books of I Item 6. - 20 00/146280/Do H B -146- accounts at all reasonable times to the extent and as is necessary to verify the accuracy of Subcontractor's reports. Subcontracts over $10,000: University, Prime Award Sponsor, the Comptroller General of the United States, or any of their duly authorized representatives, shall have access to any books, documents, paper and records of Subcontractor which are directly pertinent to this agreement for the purpose of making audits, examinations, excerpts and transcriptions. 2. Accounting Procedures The Subcontractor's costs shall be determined on the basis of the Subcontractor's accounting system procedures and practices employees as of the effect date of this Subcontract, provided that the Subcontractor shall use generally accepted accounting principles and cost reimbursement practices. The Subcontractor's cost accounting practices used in accumulating and reporting costs during the performance of this Subcontract shall be consistent with the practices used in estimating costs of any proposal to which this Subcontract relates; provided that such practices are consistent with the other terms of this Subcontract and provided, further, that such costs may be accumulated and reported in greater detail during performance of this Subcontract. The Subcontractor's accounting system shall distinguish between direct costs and indirect costs. All costs incurred for the same purpose, in like circumstances, are either direct costs only or indirect costs only with respect to costs incurred under this Subcontract. 3. Allowability of Costs a. Allowable Costs The costs for which the Subcontractor shall be reimbursed under this Subcontract include all costs, direct and indirect, incurred in the performance of work that are identified in the Subcontract budget. Costs must be incurred within the period of performance of the Subcontract. Factors to be considered in determining whether an individual item of cost is allowable include (i) reasonableness of the item, (ii) appropriate use of the allocability of the item to the work, (iii) applicable federal cost principles incorporated by reference in this Subcontract, and (iv) the terms and conditions of this Subcontract. b. Unallowable Costs The following is a description of some specific items of cost that are unallowable; provided, however, that the fact that a particular item of cost is not included shall not mean that it allowable. Details concerning the allowability of costs are available from the Prime Award Sponsor's Accounting Office. i. Profit or Fees, Contingency Costs, Imputed Costs, Fines and Penalties, Losses, Excess Profit Taxes and increased rates for this Subcontract 12 16-5500/146280/DO 1413 -147- Item 6. - 21 ii. The University will pay for state or local state or use taxes on expenditures. C. Except as provided for in this Subcontract, Subcontractor shall use the federal regulations incorporated by reference in this Subcontract when determining allowable and unallowable costs. In the event of a conflict, this Subcontract takes precedence over the federal regulations. 4. Audit Rights Subcontractor shall maintain books, records, documents, and other evidence, based on the procedures set forth above, sufficient to reflect properly all costs claimed to have been incurred in perforning this Subcontract. The University may audit such accounting records at all reasonable times with prior notice by the University. It is the intent of the parties that such audits shall ordinarily be performed not mare frequently than once every twelve (12) months during the performance of the work and once at any time within three (3) years following payment by the University of the Subcontractor's final invoice. However, performance of any such interim audits by the University does not preclude further audit. 5. Refund If the University detennines, that any invoiced and paid amounts exceed the actual allowable incurred costs, Subcontractor shall repay such amount to the University within thirty (30) days of request or as otherwise agreed by the University and Subcontractor. If the University does not receive such repayment, the University shall be entitled to withhold further payments under this Subcontract to the Subcontractor or seek repayment from the Subcontractor. 6. Match Funds If the budget includes a match funds requirement, the Subcontractor's commitment of resources, as described in this Subcontract, is a required expenditure for receipt of Subcontract fiends. Subcontract funds will be released only if the required percentages of march funds are expended. The Subcontractor must maintain accounting records detailing the expenditure of the march funds reported as match funds expenditures on the Subcontractor's request for payment. B. ASSIGNMENT This Subcontract may not be assigned in whole or in part without the prior written consent of the University. 13 Item 6. - 22 Oo/14628o/Do 11B - 148_ C. TERMINATION 1. Default In the event of any default of this Subcontract, University may, without prejudice to any of its other legal remedies, terminate this Subcontract upon five (5) days written notice to Subcontractor. 2. For Cause This Subcontract may be terminated by either party upon thirty (30) days written notice to the other party, except that the termination of the Prune Award concurrently terminates this Subcontract with the same date. In such event, Subcontractor agrees to use all reasonable efforts to mitigate its expenses and obligations. The terra "for cause" includes, but it not limited to, the following reasons: a. Loss or redirection of funding for this Subcontract; b. Significant change in Prime Award Sponsor's policy such that the work being funded would not be supported by the Prime Award Sponsor; c. Change in Prime Award Sponsor's staffing such that the work being funded can be done by staff of Prime Award Sponsor. 3. Allowable Costs The federal regulations incorporated into this Subcontract and Prime Agreement attached hereto as Exhibit C shall be used to determine allowable termination costs, but not in excess of the total amount of the Subcontract. D. TITLE TO EQUIPMENT Title to equipment (initial cost of $5000 or more and an expected service life of two (2) years or more) purchased by the Subcontractor pursuant to the terms of this Subcontract shall vest in the Subcontractor provided prime agency has not reserved the right to take or transfer title. E. INDEMNIFICATION Subcontractor shall defend, indemnify and hold University, its officers, employees and agents harmless from and against any and all liability, loss, expense, attorneys' fees, or claims for injury or damages arising out of the performance of this Subcontract but only in proportion to and to the extent such Iiability, loss, expense, attorneys' fees, or claims for injury or damages are caused by or result from the negligent or intentional acts or omissions of Subcontractor, its officers, agents or employees. University shall defend, indemnify and hold Subcontractor, its officers, employees and agents harmless from and against any and all liability, loss, expense, attorneys' fees, or claims for injury or damages arising out of the performance of this Subcontract but only in 14 16-5500/146280/Do H B -149- Item 6. - 23 proportion to and to the extent such liability, loss, expense, attorneys' fees, or claims for injury or damages are caused by or result from the negligent or intentional acts or omissions of University, its officers, agents or employees. F. PRIME AWARD All applicable provisions contained in Prime Award No. EPC-15-086 from California Energy Commission shall be binding upon the Subcontractor, and the Subcontractor hereby agrees to comply with same. A copy of the Prime Award is attached to this Subcontract as Exhibit C. G. CERTIFICATIONS 1. Debarment, Suspension, Ineligibility and Voluntary Exclusion -Lower Tier Covered Transactions (a) The prospective lower tier participant certifies, by execution of this subcontract, that neither it nor its principals is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any Federal department of agency. (b) Where the prospective lower tier participant is unable to certify to any of the statements in this certification such prospective participant shall attach an explanation to this proposal. 2. Restriction on Lobbying (in all subcontracts over $100,000 under federal grants, contract, and cooperative agreements). Subcontractor in executing this Subcontract is certifying that as of December 23, 1989, it neither has used nor will use any appropriated federal funds to lobby for or otherwise influence the awarding or amending of this Subcontract, and that it will disclose the use of any non-federal funds used for these purposes. H. Travel and Per Diem 1. Those trips already identified in the Budget are considered approved when this Subcontract goes into effect. Travel not listed in the Budget of this Subcontract shall require prior written authorization from the University. When requesting such approval, Subcontractor will identify who shall travel, the purpose of the travel and the destination. 2. Subcontractor must document travel expenses in its financial records as follows: i. Expenses must be detailed. ii. Expenses must be listed by trip, including date and times of departure and return. 15 Item 6. - 24 00/146280/D0 F-1 13 - 15 0- iii. Subcontractor must retain receipts for travel expenses claimed for audit and verification. 3. Travel not listed in the Budget of this Subcontract shall require prior written authorization, via e-mail or other means, from University. I. Standard of Performance Subcontractor and their employees in the performance of Subcontractor's work under this Subcontract shall be responsible for exercising the degree of skill and care required by customarily accepted good professional practices and procedures used in scientific and engineering research fields. 2. The failure of a project to achieve the technical or economic goals stated in the Statement of Work is not a basis for the University to determine that the work is unacceptable, unless the work conducted by the Subcontractor is deemed to be have failed the foregoing standard of performance. 3. In the event that Subcontractor fails to perform in accordance with the foregoing standard of performance, the University shall seek to negotiate in good faith an equitable resolution satisfactory to both parties. 4. Nothing contained in this section is intended to limit any of the rights or remedies which the parties may have under the law. J. Access to Sites and Records The Energy. Commission staff or its representatives shall have reasonable access to all project sites and to all records related to this Subcontract. K. Nondiscrimination Statement of Compliance During the performance of this Subcontract, Subcontractor shall not unlawfully discriminate, harass or allow harassment, against any employee or applicant for employment because of sex, sexual orientation, race, color, ancestry, religious creed, national origin, physical disability (including HIV and AIDS), mental disability, medical condition (cancer), age (40), marital status, and denial of family care leave. Subcontractor shall insure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment. Subcontractors shall comply with provisions of the Fair Employment and Housing Act (Government Code Sections 12990 et seq.) and the applicable regulations promulgated hereunder (California Code of Regulations, Title 2, Section 7285 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code Section 12990 (a-f), set forth in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations are incorporated into this Subcontract by reference and made a part of it as if set forth in full. Subcontractor shall give written notice of their obligations under this section to labor organizations with which they have a collective bargaining or other Subcontract. 16 16-5500i146280nDo ti B _ I -5 I _ Item 6. - 25 L. Survival of Terms It is understood and agreed that certain provisions shall survive the completion or termination date of this Subcontract of any reason. The provisions include, but are not limited to: 1. Recordkeeping, Cost Accounting and Auditing 2. Equipment 3. Pre -Existing intellectual Property, Independently Funded Intellectual Property, and Pre-existing Data 4. Intellectual Property 5. Royalty Payments to the Energy Commission 6. Access to Sites and Records M. Definitions 1. Confidential Information: any data or information that is proprietary to the Disclosing Party, allowed to be kept confidential under the California Public Records Act (Government Code Section 6254 et seq.) or other applicable law, and not publicly known at the time of disclosure to the receiving party. 2. Copyrightable Work means any copyrighted work as defined under U.S. copyright law to which the Subcontractor or Match Fund has acquired title that is first created in the performance of the Statement of Work under this Subcontract and is not a scholarly work. 3. Data means information, regardless of the form or medium including, but not limited to drawing, lists, findings, computations, notes, diagrams, data files, statistical records and other research data. 4. Pre-existing Data means Data possessed or owned by. the Subcontractor that exists prior to the Subcontract start date or developed during the Subcontract without Commission or Match Funds. 5. Project means the entire effort undertaken by Subcontractor in the performance of this Subcontract and consisting of the work funded in whole or in part by the Prime Award. 6. Project -relevant Pre-existing Data means Pre-existing Data used by Subcontractor in the performance of the Statement of Work conducted under this Subcontract. 17 Item 6. - 2600/146280/DO HB -152- 7. Project Data means Data that is first produced in the performance of this Subcontract by Subcontractor or a Match Funds partner. Project Data does not include a researcher's laboratory notebook, but may include the Data contained therein. 8. Deliverable Data means Project Data that is identified in the Statement of Work and required to be delivered to the University or Commission. 9. Equipment is defined as having a useful life of at least one year, having an acquisition unit cost of at least $5,000, and purchased with Energy Commission funds. Equipment means any projects, objects, machinery, apparatus, implements or tools purchased, used or constructed with the Project, including those products, objects, machinery, apparatus, implements or tools from which over thirty percent (30%) of the equipment is composed of Materials purchase for the Project. For purposes of determining depreciated value of equipment used in the Subcontract, the Project shall terminate at the end of the normal useful life of the equipment purchased, funded and/or developed with Prime Award funds. The Energy Commission may determine the normal useful life of such equipment. 10. Key Personnel are employees of the Subcontractor who are both listed in the Subcontract and critical to the outcome of the project. For example, they may have expertise in the particular field or have experience that is not available from another source. Replacing these individuals may affect that outcome of the project. 11. Independently Funded Intellectual Property means Intellectual Property created, conceived, discovered, made, developed, altered, or reduced to practice by the Subcontractor during or after the Subcontract teen without Commission or Match Funds, and any associated proprietary rights to these items that are obtained with Energy Commission or Match Funds, such as patent and copyright, 12. Intellectual Property means inventions, technologies, designs, drawings, software, formulas, compositions, processes, techniques, works of authorship, trademarks, service marks, logs, and any associated proprietary rights to these terms, such as patent and copyright, including and any upgrades or revisions to these items. 13, Licensed Product means any project commercialized by a Licensee that embodies or utilizes Project Data, a Subject Invention or Copyrightable Work. 14. Licensee means the organization that is granted commercial rights to Project Data, a Subject Invention or Copyrightable Work develop any of these into a commercial product that is made available to the public in the marketplace or otherwise sold. 15. Load -serving entity means a company or other organization that provides electricity to EPIC ratepayers. 16. Match Funds means cash or in -kind contributions shown in the approved budget, Exhibit B, and provided by Subcontractors or other parties that will be used in performance of this Subcontract. 18 16-5500/146280/DO HB -153- Item 6. - 27 17. Match Fund Partner means an entity providing Match Funds that does not receive any Commission funds. 18. Materials means the substances used in constructing a finished object, commodity, device, article or product. 19. Net Revenues means the total of the gross invoice prices of Licensed Product sold, less the sum of the following actual and customary deductions where applicable: cash, quantity discounts; sales, use, tariff, import/export duties or other excise taxes imposed upon particular sales; transportation charges; and allowance or credits to customers because of rejections or returns. 20. Net Royalties means gross licensing income, including royalties and fees, received by Subcontractors fi-om a Licensee as consideration for commercially licensing any Subject Invention, Copyrightable Work, or Project Data, less the following: a. Legal or other direct expenses (that are not otherwise reimbursed under an option or license agreement from a third party) of patenting, protecting and preserving patent, copyright and related property rights, maintaining patents and other such costs, taxes, or reimbursements as may be necessary or required by law, except patent infringement expenses; b. Inventor or author shares in accordance with Subcontractor's patent or copyright policy; and c. Direct expenses include operating expenses of Subcontractor which are customarily reimbursed by royalty payments. Net Royalties do not include any payments to joint holders nor research funding accepted by Subcontractor in association with an option or licensing agreement. Net Royalties shall be aggregated cumulatively, over time for each disclosed Subject Invention, Copyrightable Work, or Project Data, 21. Ownership means exclusive possession and control of all rights to property, including the right to use and transfer property. 22. Pre-existing Intellectual Property means Intellectual Property that the Subcontractor owned and possessed prior to the effective date of this Subcontract and that have not been developed, altered, or reduced to practice with Energy Commission or Match Funds, and any associated proprietary rights to these items that are obtained without Energy Commission or Match Funds, such as patent and copyright. 23. Products means all tangible research products first made by Subcontractor, or Match Fund Partners in the performance of this Subcontract and specified for delivery in the Statement of Work, but not a Subject Invention nor a Copyrightable Work. we, Item 6. - 28 00/146280/DO H B -154- 24. Project -relevant Pre-existing Intellectual Property means Pre-existing Intellectual Property used by Subcontractor or Match Fund Partners in the performance of the Statement of Work conducted under this Subcontract. 25. Project -relevant Independently Funded Intellectual Property means Independently Funded Intellectual Property used by Subcontractor or Match Fund Partners in the performance of the Statement of Work under this Subcontract. 26. Report means all required reports specified for delivery to the University in the Statement of Work. 27. Subject Invention means any patentable invention or discovery that is either: a. Conceived and first actually reduced to practice (actually reduced to practice or constructively reduced to practice by the filiaig of a patent application) in the performance of the Statement of Work; b. Conceived in the performance of the Statement of Work and first reduced to practice in the performance of the Statement of Work conducted under this Subcontract or within forty-two (42) months after the completion of the Statement of Work; c. Conceived prior to the effective date of this Subcontract or conceived without Energy Commission funds and reduced to practice in the performance of the Statement of Work, provided that such conception is not encumbered by an), obligations owed to a third party other than the U.S. Government. ARTICLE 9 NOTICE AND CONTACTS A. Notices shall be directed to the appropriate individual(s) noted below. UNIVERSITY CONTACTS Principal Investigator Name: Dr. Jack Brouwer Address: National Fuel Cell Research Center 221 Engineering Laboratory Facility Irvine, CA 92697-3975 Telephone: 949-824-8191 Email: jbrouwer@uci.edu SUBCONTRACT CONTACTS Key Investitzator Name: Antonia Graham, Assistant to the City Manager Address: 2000 Main Street Huntington Beach, CA 92648 Telephone: (714) 536-5537 Email: Antonia.grahaingsurfcity-hb.or 16-5500/146280/DO 20 «g -1 55- Item 6. - 29 Authorized Official Name: Grace J. Park Address: UCI, Office of Research 5171 California Avenue, Suite 150 Irvine, CA 9269-7600 Telephone: 949-824-7218 Email: parkgj@uci.edu Financial Contact Name: Jeff Wojciechowski Address: Advanced Power & Energy Program 221 Engineering Lab Facility Irvine, CA 92697-3550 Telephone: 949-824-7302 Email: jwojciec@uci.edu Authorized Official Name: Fred Wilson, City Manager Address: 2000 Main Street Huntington Beach, CA 92648 Telephone: (714) 375-8465 Email: Fred. Wilson a,surfcity-lib.or� Financial Contact Name: Sunny Han, Finance Project Manager Address: 2000 Main Street Huntington Beach, CA 92648 Telephone: (714) 536-5907 Email: Sunny.Han@surfcity-hb.org B. Whenever any notice is to be given hereunder, it shall be in writing and shall be deemed received, if delivered by courier on a business day, on the day delivered, or on the second business day following mailing, if sent by first-class certified or registered mail, postage prepaid. ARTICLE 11 CONTENTS AND ORDER OF PRECEDENCE Attached to this subcontract are the following exhibits: EXHIBIT A - Statement of Work EXHIBIT B - Cost Estimate EXHIBIT C - Prime Award No. EXHIBIT D - Patent Statement and Equipment Report EXHIBIT E - Subcontractor's Release EXHIBIT F - Invoice Form Insofar as these instruments apply to this subcontract together with the instruments previously enumerated and those listed below, they constitute the entire agreement and understanding between the University and Subcontractor. In the event of an inconsistency in this Subcontract, the inconsistency shall be resolved by giving precedence in the following order. 1. Subcontract Schedule 2. Prime Award No. EPC-15-077 Item 6. - 30 00i146280/Do 21 HB -156- ARTICLE 12 GOVERNING LAW This Subaward shall be governed by the laws of the State of California without regard to its conflicts of law principles. ARTICLE 13 ENTIRE AGREEMENT, WAIVERS, AND AMENDMENTS This Subcontract contains the full and complete agreement between the two parties. All modifications must be in writing and signed by the University's Institutional Official and the Subcontractor's Contracting Officer. No verbal agreements or conversations with any officer or employee of either party shall affect or modify any of the terms and conditions of this Subcontract. APPROVED AND AGREED: The Regents of the University of California Subcontractor: City of Huntington Beach By: By: Title: Subcontract Officer By: Date: City Manager City Clerk APPROVED AS TO?TORM: In City Attorney D �o 1NI AN APPRO D: Ass s ity Manager 16-5500/ 1 Q 6280/DO 22 HB -157- Item 6. - 31 EXHIBIT A STATEMENT OF WORK (SOW) City of Huntington Beach The EPIC Challenge: Accelerating the Deployment of Advanced Energy Communities GFO-15-312 Feb 08, 2016 In support of the University Of California's response to California Energy Commission GFO-15- 312 entitled "Huntington Beach Advanced Energy Community Blueprint: A Scalable, Replicable, and Cost -Effective Model for the Future" the City of Huntington Beach commits to accomplishing the following statement of work (SOW): • Support site investigation to explore opportunities for multiple energy efficiency and power generation technologies. • Support the building energy modeling and utilities analysis. • Support development of an overall energy master plan for the Oak View Community. • Take responsibility for arranging meetings and organizing outreach and publicity events with the community of Oak View. • Utilize the City's Public Information Officer to disseminate project updates and information to the public through a variety of social and traditional media platforms. • Work with UCI, Altura, NREL and local property owners to create a robust stakeholder group. o Lead the engagement process with all stakeholders • Work with Altura and UCI to evaluate and establish acceptable financing mechanisms for converting communities into AEC Item 6. - 32 tag-i,S- EXHIBIT !i FINAL 17 December 2015 Budget and Budget Justification The budget that is required for the City of Huntington Beach to participate in the proposed effort is presented in Table 1 below. This budget estimate includes support of salaries for Antonia Graham, Energy and Sustainability Manager/Assistant to the City Manager, Sunny Han, Finance Project Manager, and Kirsten Graham, Energy and Sustainability Intern. The travel costs are for collaboration meetings in Irvine and attendance at local conferences to highlight the work being done in the Oak View Community, while the materials and supplies costs are for computer software and hardware as well as publication expenses. Indirect costs are assessed at City of Huntington Beach rate of 10% de minimus rate of total direct costs per 2 CFR 200.331(a)(4). Benefits rates are calculated individually based on the individuals salary —this varies. Note that the CEC budget request for each of the budget categories sums to a total of $90,000. A significant amount of cost share is provided by the City of Huntington Beach in the form of salary and benefits for staff that will directly participate in the project. Table 1. Proposed 6zrdget Details for• the project Budget Item: CEC Cost Share Total Amount Amount Salaries* This is the fully burdened $60,000 $152,900 rate for the three project employees Employee benefits 0 Tuition and Fees 0 0 Equipment 0 0 Materials & $28,000 Supplies Travel $2,000 Subcontracts Other Direct Costs Indirect Costs TOTALS:J $90,000 1 $152,900 FIB _ISg_ Item 6. - 33 EXHIBIT C RECIPIENT The Regents of the University of California, Irvine campus AGREEMENT NUMBER EPC-15-077 ADDRESS AGREEMENTTERM 6/15/2016 to 7/31 /2018 University of California, Irvine The effective date of this Agreement is either the start date or the approval Office of Research Administration date by the California Energy Commission, whichever is later. The California Energy Commission shall be the last party to sign. No work is 5171 California, Suite 150 authorized, nor shall any work begin, until on or after the effective date. PROJECT DESCRIPTION The parties agree to comply with the terms and conditions of the following Exhibits which are by this reference made a part of the agreement. Exhibit A — Scope of Work Page(s): 21 Exhibit A — Attachments Page(s): 2 Exhibit B — Budget Page(s): 27 Exhibit B — Attachments Page(s): 0 Exhibit C — General Terms and Conditions Page(s): 33 Exhibit C — Attachments Page(s): 4 Exhibit D - Contacts Page(s): 1 $ 1,500,000 $ 810,998 $ 21310,998 The undersigned parties have read the attachments to this agreement and will comply with the standards and requirements contained therein. CALIFORNIA ENERGY COMMISSION RECIPIENT AUTHORIZED SIGNATURE DATE AUTHORIZED SIGNATURE DATE NAME Rachel L. Grant Kiley NAME TITLE Contracts, Grants and Loans Office Manager TITLE CALIFORNIA ENERGY COMMISSION ADDRESS 1516 9th Street, MS 1, Sacramento, CA 95814 Item 6. - 34 11B _160- EXHIBIT C SECTION 1. 2. 3. 4. 5. 6. 7. 8. 9. 10 11 12 13 14 15 16 17 18 19 20 21. 22. 23. 24. 25. EXHIBIT C EPIC UC TERMS AND CONDITIONS TABLE OF CONTENTS GrantAgreement....................................................................................... Attachments and References.................................................................. ApplicableLaws......................................................................................... DueDiligence............................................................................................. Products...................................................................................................... Reports........................................................................................................ Legal Statement on Reports and Products .......................................... Amendments.............................................................................................. Contracting and Procurement Procedures ........................................... Permits and Clearances........................................................................... Equipment................................................................................................... Termination................................................................................................. Traveland Per Diem................................................................................. Standard of Performance......................................................................... Paymentof Funds..................................................................................... Recordkeeping, Cost Accounting, and Auditing .................................. Indemnification PAGE NO. .................. 2 .................. 2 .................. 3 .................. 3 .................. 3 .................. 3 .................. 4 .................. 5 .................. 6 .................. 8 R ............ 8 ............ 9 ............ 9 ..........10 ..........12 ......................................................................................................................15 Workers' Compensation Insurance ................................... Confidentiality........................................................................ Pre -Existing Intellectual Property, Independently Property, and Pre-existing Data ........................................ Intellectual Property............................................................. Royalty Payments to the Energy Commission ................ General Provisions............................................................... Certifications and Compliance ........................................... Definitions.............................................................................. ...................................15 ...................................15 Funded Intellectual .................................17 .................................19 ................................. 23 ................................. 25 ................................. 26 ................................. 29 HB -161- Item 6. - 35 EXHIBIT C I. TASK ACRONYM/TERM LISTS A. Task List Task # CPR' Task Name 1 General Project Tasks 2 Develop AEC Design and Planning Tool 3 Develop Smart Community Micro rid Energy Management Model 4 X Develop Case Studies on Various Integration Designs 5 Develop Master Community Design 6 Develop Financial and Business Models 7 Develop Outreach Strategy 8 Evaluation of Project Benefits 9 Tech nolo /Knowled e Transfer Activities B. Acronym/Term List Acronym/Term Meaning AEC Advanced Energy Community CAM Commission Agreement Manager CAO Commission Agreement Officer CPR Critical Project Review TAC Technical Advisory Committee II. PURPOSE OF AGREEMENT, PROBLEM/SOLUTION STATEMENT, AND GOALS AND OBJECTIVES A. Purpose of Agreement The purpose of this Agreement is to fund the development of extensible tools and to plan and design the integrated set of energy infrastructure and advanced energy technology approaches for accelerating the deployment of Advanced Energy Communities (AEC). B. Problem/ Solution Statement Problem There is lack of optimal integration approaches of smart grid technologies, combined cooling heating and power generation with high temperature fuel cells, energy storage technologies, and renewable energy utilization, for greater electricity reliability, lower costs, increased safety and Zero Net Energy future in the community level. Solution The Regents of the University of California (Recipient), on behalf of the Irvine campus, will develop tools, plan, design, and evaluate integrated sets of advanced energy technologies and solutions at a pilot/community scale and to validate its benefits to California Investor -Owned - Please see subtask 1.3 in Part III of the Scope of Work (General Project Tasks) for a description of Critical Project Review (CPR) Meetings. Item 6. - 36 HB -162- EXHIBIT C Utilities ratepayers and California Independent System Operator in various case studies and designs. To accelerate the deployment of AECs throughout the state, applied research is needed to integrate and optimize the promising new energy innovations into a unified system that efficiently interacts with the existing community electrical grid/infrastructure/buildings, serves various end -uses, obtains performance data for scale -up, and performs cost -benefit analyses for demonstrating economic feasibility. Master community design tools and approaches and integration and control strategies for innovative energy technologies will be advanced in this project, which will accelerate the development of and establish technical and economic readiness for deployment of AECs throughout the State. The tools will be extensible and the AEC designs will be replicable to other communities throughout California with transferable knowledge, technologies, and findings. C. Goals and Objectives of the Agreement Agreement Goals The goal of this Agreement is to: develop extensible tools and to plan and design the integrated set of energy infrastructure and advanced energy technology approaches to convert the community of Oak View into an AEC that can be easily replicable for use in similar communities. Ratepayer Benefits :2 This Agreement will result in the ratepayer benefits of greater electricity reliability, lower costs, and increased safety. The reliability is increased by 1) local renewable energy resources are being utilized in the AEC and could serve the critical loads inside the community without interruption, 2) providing mobility in case of an emergency through electric vehicle charging stations in adjacent communities, 3) the AEC could provide ancillary services to the grid during normal operations, and 4) the AEC could provide black -start capability, (the ability to keep the system running during a power outage). The AEC design will provide lower costs and economic benefit to the ratepayers by 1) reducing the transmission/distribution losses, 2) reducing the need for new transmission infrastructure and 3) providing a less expensive method in achieving the state's 50% renewable goal and environmental goals. Lastly, this replicable AEC design will also significantly reduce greenhouse gas emissions and criteria emissions compared to the grid as a whole, as it incorporates more renewables, leading to increased ratepayer safety and health benefits. Technological Advancement and Breakthroughs:' This Agreement will support the development and commercialization of technological advancements and breakthroughs that overcome barriers to the achievement of the State of California's statutory energy goals by: 1) maximize the use of the renewable energy sources in the community, 2) help mitigate the increasing renewable intermittency impact on the local utility grid, 3) reduce the emissions from the community, and 4) improve the grid reliability and resiliency from community level. This Agreement will support development and commercialization of technological advancements that overcome barriers to achieving the state's increase use of renewable energy goal. This Agreement will advance the integration of emerging and proven green energy technologies, with 2 California Public Resources Code, Section 25711.5(a) requires projects funded by the Electric Program Investment Charge (EPIC) to result in ratepayer benefits. The California Public Utilities Commission, which established the EPIC in 2011, defines ratepayer benefits as greater reliability, lower costs, and increased safety (See CPUC "Phase 2" Decision 12-05-037 at page 19, May 24, 2012, http://docs.cpuc.ca.gov/PublishedDocs/WORD PDF/FINAL DECISION/167664.PDF). 3 California Public Resources Code, Section 25711.5(a) also requires EPIC -funded projects to lead to technological advancement and breakthroughs to overcome barriers that prevent the achievement of the state's statutory and energy goals. IAB -163_ Item 6. - 37 EXHIBIT C various end -uses in the community scale. The knowledge gained from the integration of technologies with the end -uses will be valuable to communities throughout California. Agreement Objectives The objectives of this Agreement are to: • Develop and establish an AEC Design and Planning Tool to provide insights and recommendations on various integration and deployment options for the Oak View community, • Develop and establish a Smart Community Microgrid Energy Management Model that can simulate and evaluate the impacts and performance characteristics of the suite of clean energy technologies and systems that will be implemented in the AECs, • Carry out case studies to evaluate various designs and integration strategies; the design effort will include, but not be limited to, combinations of Energy Efficiency Measures, supplemental local renewable energy sources, energy storage systems, novel uses of the natural gas system, clean power generation systems with combined cooling, heating and power, and Smart -grid technologies that will be evaluated for the best value in terms of economic, environmental and technical performance, • Propose a Master Community Design for the Oak View community from the case studies, and establish a Master Community Design for a generic community, • Develop financial and business models for AEC design and develop a market facilitation plan, • Develop an outreach strategy for educating the building industry, utilities, government agencies, communities and other interested parties regarding the benefits of using an integrated set of advanced energy technologies to revitalize and energize a community, make it an AEC, and produce jobs and educational benefits. Item 6. - 38 HB -164- EXHIBIT C III. TASK 1 GENERAL PROJECT TASKS PRODUCTS Subtask 1.1 Products The goal of this subtask is to establish the requirements for submitting project products (e.g., reports, summaries, plans, and presentation materials). Unless otherwise specified by the Commission Agreement Manager (CAM), the Recipient must deliver products as required below by the dates listed in the Project Schedule (Part V). Products that require a draft version are indicated by marking "(draft and final)" after the product name in the "Products" section of the task/subtask. If "(draft and final)" does not appear after the product name, only a final version of the product is required. With respect to due dates within this Scope of Work, "days" means working days. The Recipient shall: For products that require a draft version, including the Final Report Outline and Final Report • Submit all draft products to the CAM for review and comment in accordance with the Project Schedule (Part V). The CAM will provide written comments to the Recipient on the draft product within 15 days of receipt, unless otherwise specified in the task/subtask for which the product is required. • Consider incorporating all CAM comments into the final product. If the Recipient disagrees with any comment, provide a written response explaining why the comment was not incorporated into the final product. Submit the revised product and responses to comments within 10 days of notice by the CAM, unless the CAM specifies a longer time period, or approves a request for additional time. For products that require a final version only • Submit the product to the CAM for acceptance. The CAM may request minor revisions or explanations prior to acceptance. For all products • Submit all data and documents required as products in accordance with the following: Instructions for Submitting Electronic Files and Developing Software: o Electronic File Format Submit all data and documents required as products under this Agreement in an electronic file format that is fully editable and compatible with the Energy Commission's software and Microsoft (MS) -operating computing platforms, or with any other format approved by the CAM. Deliver an electronic copy of the full text of any Agreement data and documents in a format specified by the CAM, such as memory stick or CD-ROM. The following describes the accepted provided to the Energy Commission establishes the software versions that software products: formats for electronic data as products under this will be required to review and documents Agreement, and and approve all H B-165- Item 6. - 39 EXHIBIT C — Data sets will be in MS Access or MS Excel file format (version 2007 or later), or any other format approved by the CAM. — Text documents will be in MS Word file format, version 2007 or later. — Documents intended for public distribution will be in PDF file format. The Recipient must also provide the native Microsoft file format. — Project management documents will be in Microsoft Word file format, version 2007 or later. o Software Application Development Use the following standard Application Architecture components in compatible versions for any software application development required by this Agreement (e.g., databases, models, modeling tools), unless the CAM approves other software applications such as open source programs: — Microsoft ASP. NET framework (version 3.5 and up). Recommend 4.0. — Microsoft Internet Information Services (IIS), (version 6 and up) Recommend 7.5. — Visual Studio.NET (version 2008 and up). Recommend 2010. — C# Programming Language with Presentation (UI), Business Object and Data Layers. — SQL (Structured Query Language). — Microsoft SQL Server 2008, Stored Procedures. Recommend 2008 R2. — Microsoft SQL Reporting Services. Recommend 2008 R2. — XML (external interfaces). Any exceptions to the Electronic File Format requirements above must be approved in writing by the CAM. The CAM will consult with the Energy Commission's Information Technology Services Branch to determine whether the exceptions are allowable. MEETINGS Subtask 1.2 Kick-off Meeting The goal of this subtask is to establish the lines of communication and procedures for implementing this Agreement. The Recipient shall: • Attend a "Kick-off' meeting with the CAM, the Commission Agreement Officer (CAO), and any other Energy Commission staff relevant to the Agreement. The Recipient will bring its Project Manager and any other individuals designated by the CAM to this meeting. The administrative and technical aspects of the Agreement will be discussed at the meeting. Prior to the meeting, the CAM will provide an agenda to all potential meeting participants. The meeting may take place in person or by electronic conferencing (e.g., WebEx), with approval of the CAM. The administrative portion of the meeting will include discussion of the following: o Terms and conditions of the Agreement; o Administrative products (subtask 1.1); o CPR meetings (subtask 1.3); o Match fund documentation (subtask 1.7); o Permit documentation (subtask 1.8); Item 6. - 40 H B - i «- EXHIBIT C o Subcontracts (subtask 1.9); and o Any other relevant topics. The technical portion of the meeting will include discussion of the following: o The CAM's expectations for accomplishing tasks described in the Scope of Work; o An updated Project Schedule; o Technical products (subtask 1.1); o Progress reports and invoices (subtask 1.5); o Final Report (subtask 1.6); o Technical Advisory Committee meetings (subtasks 1.10 and 1.11); and o Any other relevant topics. Provide an Updated Project Schedule, List of Match Funds, and List of Permits, as needed to reflect any changes in the documents. The CAM shall: • Designate the date and location of the meeting. • Send the Recipient a Kick-off Meeting Agenda. Recipient Products: • Updated Project Schedule (if applicable) • Updated List of Match Funds (if applicable) • Updated List of Permits (if applicable) CAM Product: • Kick-off Meeting Agenda Subtask 1.3 Critical Project Review (CPR) Meetings The goal of this subtask is to determine if the project should continue to receive Energy Commission funding, and if so whether any modifications must be made to the tasks, products, schedule, or budget. CPR meetings provide the opportunity for frank discussions between the Energy Commission and the Recipient. As determined by the CAM, discussions may include project status, challenges, successes, advisory group findings and recommendations, final report preparation, and progress on technical transfer and production readiness activities (if applicable). Participants will include the CAM and the Recipient, and may include the CAO and any other individuals selected by the CAM to provide support to the Energy Commission. CPR meetings generally take place at key, predetermined points in the Agreement, as determined by the CAM and as shown in the Task List on page 1 of this Exhibit. However, the CAM may schedule additional CPR meetings as necessary. The budget will be reallocated to cover the additional costs borne by the Recipient, but the overall Agreement amount will not increase. CPR meetings generally take place at the Energy Commission, but they may take place at another location, or may be conducted via electronic conferencing (e.g., WebEx) as determined by the CAM. The Recipient shall: • Prepare a CPR Report for each CPR meeting that: (1) discusses the progress of the Agreement toward achieving its goals and objectives; and (2) includes recommendations and conclusions regarding continued work on the project. HB -167- Item 6. - 41 EXHIBIT C Submit the CPR Report along with any other Task Products that correspond to the technical task for which the CPR meeting is required (i.e., if a CPR meeting is required for Task 2, submit the Task 2 products along with the CPR Report). Attend the CPR meeting. Present the CPR Report and any other required information at each CPR meeting. The CAM shall: • Determine the location, date, and time of each CPR meeting with the Recipient's input. • Send the Recipient a CPR Agenda and a List of Expected CPR Participants in advance of the CPR meeting. If applicable, the agenda will include a discussion of match funding and permits. • Conduct and make a record of each CPR meeting. Provide the Recipient with a Schedule for Providing a Progress Determination on continuation of the project. • Determine whether to continue the project, and if so whether modifications are needed to the tasks, schedule, products, or budget for the remainder of the Agreement. If the CAM concludes that satisfactory progress is not being made, this conclusion will be referred to the Deputy Director of the Energy Research and Development Division. • Provide the Recipient with a Progress Determination on continuation of the project, in accordance with the schedule. The Progress Determination may include a requirement that the Recipient revise one or more products. Recipient Products: • CPR Report(s) • Task Products (draft and/or final as specified in the task) CAM Products: • CPR Agenda • List of Expected CPR Participants • Schedule for Providing a Progress Determination • Progress Determination Subtask 1.4 Final Meeting The goal of this subtask is to complete the closeout of this Agreement. The Recipient shall: • Meet with Energy Commission staff to present project findings, conclusions, and recommendations. The final meeting must be completed during the closeout of this Agreement. This meeting will be attended by the Recipient and CAM, at a minimum. The meeting may occur in person or by electronic conferencing (e.g., WebEx), with approval of the CAM. The technical and administrative aspects of Agreement closeout will be discussed at the meeting, which may be divided into two separate meetings at the CAM's discretion. o The technical portion of the meeting will involve the presentation of findings, conclusions, and recommended next steps (if any) for the Agreement. The CAM will determine the appropriate meeting participants. o The administrative portion of the meeting will involve a discussion with the CAM and the CAO of the following Agreement closeout items: - Disposition of any state-owned equipment. Item 6. - 42 1iB _16g_ EXHIBIT C - Need to file a Uniform Commercial Code Financing Statement (Form UCC-1) regarding the Energy Commission's interest in patented technology. - The Energy Commission's request for specific "generated" data (not already provided in Agreement products). - Need to document the Recipient's disclosure of "subject inventions" developed under the Agreement. - "Surviving" Agreement provisions such as repayment provisions and confidential products. - Final invoicing and release of retention. • Prepare a Final Meeting Agreement Summary that documents any agreement made between the Recipient and Commission staff during the meeting. • Prepare a Schedule for Completing Agreement Closeout Activities. • Provide All Draft and Final Written Products on a CD-ROM or USB memory stick, organized by the tasks in the Agreement. Products: • Final Meeting Agreement Summary (if applicable) • Schedule for Completing Agreement Closeout Activities • All Draft and Final Written Products FIB - 169- Item 6. - 43 EXHIBIT C REPORTS AND INVOICES Subtask 1.5 Progress Reports and Invoices The goals of this subtask are to: (1) periodically verify that satisfactory and continued progress is made towards achieving the project objectives of this Agreement; and (2) ensure that invoices contain all required information and are submitted in the appropriate format. The Recipient shall: • Submit a monthly Progress Report to the CAM. Each progress report must: o Summarize progress made on all Agreement activities as specified in the scope of work for the preceding month, including accomplishments, problems, milestones, products, schedule, fiscal status, and an assessment of the ability to complete the Agreement within the current budget and any anticipated cost overruns. See the Progress Report Format Attachment for the recommended specifications. • Submit a monthly or quarterly Invoice that follows the instructions in the "Payment of Funds" section of the terms and conditions, including a financial report on Match Fund and in -state expenditures. Products: • Progress Reports • Invoices Subtask 1.6 Final Report The goal of this subtask is to prepare a comprehensive Final Report that describes the original purpose, approach, results, and conclusions of the work performed under this Agreement. The CAM will review and approve the Final Report, which will be due at least two months before the Agreement end date. When creating the Final Report Outline and the Final Report, the Recipient must use a Style Manual provided by the CAM. Subtask 1.6.1 Final Report Outline The Recipient shall: • Prepare a Final Report Outline in accordance with the Style Manual provided by the CAM. (See Task 1.1 for requirements for draft and final products.) Recipient Products: • Final Report Outline (draft and final) CAM Product: • Style Manual • Comments on Draft Final Report Outline • Approval of Final Report Outline Item 6. - 44 HB -170- EXHIBIT C Subtask 1.6.2 Final Report The Recipient shall: • Prepare a Final Report for this Agreement in accordance with the approved Final Report Outline, Style Manual, and Final Report Template provided by the CAM with the following considerations: o Ensure that the report includes the following items, in the following order: - Cover page (required) - Credits page on the reverse side of cover with legal disclaimer (required) - Acknowledgements page (optional) - Preface (required) - Abstract, keywords, and citation page (required) - Table of Contents (required, followed by List of Figures and List of Tables, if needed) - Executive summary (required) - Body of the report (required) - References (if applicable) - Glossary/Acronyms (If more than 10 acronyms or abbreviations are used, it is required.) - Bibliography (if applicable) - Appendices (if applicable) (Create a separate volume if very large.) - Attachments (if applicable) o Ensure that the document is written in the third person. o Ensure that the Executive Summary is understandable to the lay public. - Briefly summarize the completed work. Succinctly describe the project results and whether or not the project goals were accomplished. - Identify which specific ratepayers can benefit from the project results and how they can achieve the benefits. - If it's necessary to use a technical term in the Executive Summary, provide a brief definition or explanation when the technical term is first used. o Follow the Style Guide format requirements for headings, figures/tables, citations, and acronyms/abbreviations. o Ensure that the document omits subjective comments and opinions. However, recommendations in the conclusion of the report are allowed. o Include a brief description of the project results in the Abstract. • Submit a draft of the report to the CAM for review and comment. The CAM will provide written comments to the Recipient on the draft product within 15 days of receipt. • Consider incorporating all CAM comments into the Final Report. If the Recipient disagrees with any comment, provide a written response explaining why the comment was not incorporated into the final product. • Submit the revised Final Report and responses to comments within 10 days of notice by the CAM, unless the CAM specifies a longer time period or approves a request for additional time. • Submit one bound copy of the Final Report to the CAM along with Written Responses to Comments on the Draft Final Report. «B_ii1_ Item 6.-45 EXHIBIT C Products: • Final Report (draft and final) • Written Responses to Comments on the Draft Final Report CAM Product: • Written Comments on the Draft Final Report MATCH FUNDS, PERMITS, AND SUBCONTRACTS Subtask 1.7 Match Funds The goal of this subtask is to ensure that the Recipient obtains any match funds planned for this Agreement and applies them to the Agreement during the Agreement term. While the costs to obtain and document match funds are not reimbursable under this Agreement, the Recipient may spend match funds for this task. The Recipient may only spend match funds during the Agreement term, either concurrently or prior to the use of Energy Commission funds. Match funds must be identified in writing, and the Recipient must obtain any associated commitments before incurring any costs for which the Recipient will request reimbursement. The Recipient shall: • Prepare a Match Funds Status Letter that documents the match funds committed to this Agreement. If no match funds were part of the proposal that led to the Energy Commission awarding this Agreement and none have been identified at the time this Agreement starts, then state this in the letter. If match funds were a part of the proposal that led to the Energy Commission awarding this Agreement, then provide in the letter: o A list of the match funds that identifies: — The amount of cash match funds, their source(s) (including a contact name, address, and telephone number), and the task(s) to which the match funds will be applied. — The amount of each in -kind contribution, a description of the contribution type (e.g., property, services), the documented market or book value, the source (including a contact name, address, and telephone number), and the task(s) to which the match funds will be applied. If the in -kind contribution is equipment or other tangible or real property, the Recipient must identify its owner and provide a contact name, address, telephone number, and the address where the property is located. o A copy of a letter of commitment from an authorized representative of each source of match funding that the funds or contributions have been secured. • At the Kick-off meeting, discuss match funds and the impact on the project if they are significantly reduced or not obtained as committed. If applicable, match funds will be included as a line item in the progress reports and will be a topic at CPR meetings. • Provide a Supplemental Match Funds Notification Letter to the CAM of receipt of additional match funds. • Provide a Match Funds Reduction Notification Letter to the CAM if existing match funds are reduced during the course of the Agreement. Reduction of match funds may trigger a CPR meeting. Item 6. - 46 I]B -172- EXHIBIT C Products: • Match Funds Status Letter • Supplemental Match Funds Notification Letter (if applicable) • Match Funds Reduction Notification Letter (if applicable) Subtask 1.8 Permits The goal of this subtask is to obtain all permits required for work completed under this Agreement in advance of the date they are needed to keep the Agreement schedule on track. Permit costs and the expenses associated with obtaining permits are not reimbursable under this Agreement, with the exception of costs incurred by University of California recipients. Permits must be identified and obtained before the Recipient may incur any costs related to the use of the permit(s) for which the Recipient will request reimbursement. The Recipient shall: • Prepare a Permit Status Letter that documents the permits required to conduct this Agreement. If no permits are required at the start of this Agreement, then state this in the letter. If permits will be required during the course of the Agreement, provide in the letter: o A list of the permits that identifies: (1) the type of permit; and (2) the name, address, and telephone number of the permitting jurisdictions or lead agencies. o The schedule the Recipient will follow in applying for and obtaining the permits. The list of permits and the schedule for obtaining them will be discussed at the Kick-off meeting (subtask 1.2), and a timetable for submitting the updated list, schedule, and copies of the permits will be developed. The impact on the project if the permits are not obtained in a timely fashion or are denied will also be discussed. If applicable, permits will be included as a line item in progress reports and will be a topic at CPR meetings. If during the course of the Agreement additional permits become necessary, then provide the CAM with an Updated List of Permits (including the appropriate information on each permit) and an Updated Schedule for Acquiring Permits. Send the CAM a Copy of Each Approved Permit. If during the course of the Agreement permits are not obtained on time or are denied, notify the CAM within 5 days. Either of these events may trigger a CPR meeting. Products: • Permit Status Letter • Updated List of Permits (if applicable) • Updated Schedule for Acquiring Permits (if applicable) • Copy of each Approved Permit (if applicable) Subtask 1.9 Subcontracts The goals of this subtask are to: (1) procure subcontracts required to carry out the tasks under this Agreement; and (2) ensure that the subcontracts are consistent with the terms and conditions of this Agreement. The Recipient shall: • Manage and coordinate subcontractor activities in accordance with the requirements of this Agreement. • Incorporate this Agreement by reference into each subcontract. H B -173- Item 6. - 47 EXHIBIT C • Include any required Energy Commission flow -down provisions in each subcontract, in addition to a statement that the terms of this Agreement will prevail if they conflict with the subcontract terms. • If required by the CAM, submit a draft of each Subcontract required to conduct the work under this Agreement. • Submit a final copy of the executed subcontract. • Notify and receive written approval from the CAM prior to adding any new subcontractors (see the discussion of subcontractor additions in the terms and conditions). Products: • Subcontracts (draft if required by the CAM) TECHNICAL ADVISORY COMMITTEE Subtask 1.10 Technical Advisory Committee (TAC) The goal of this subtask is to create an advisory committee for this Agreement. The TAC should be composed of diverse professionals. The composition will vary depending on interest, availability, and need. TAC members will serve at the CAM's discretion. The purpose of the TAC is to: • Provide guidance in project direction. The guidance may include scope and methodologies, timing, and coordination with other projects. The guidance may be based on: o Technical area expertise; o Knowledge of market applications; or o Linkages between the agreement work and other past, present, or future projects (both public and private sectors) that TAC members are aware of in a particular area. • Review products and provide recommendations for needed product adjustments, refinements, or enhancements. • Evaluate the tangible benefits of the project to the state of California, and provide recommendations as needed to enhance the benefits. • Provide recommendations regarding information dissemination, market pathways, or commercialization strategies relevant to the project products. The TAC may be composed of qualified professionals spanning the following types of disciplines: • Researchers knowledgeable about the project subject matter; • Members of trades that will apply the results of the project (e.g., designers, engineers, architects, contractors, and trade representatives); • Public interest market transformation implementers; • Product developers relevant to the project; • U.S. Department of Energy research managers, or experts from other federal or state agencies relevant to the project; • Public interest environmental groups; • Utility representatives; • Air district staff; and • Members of relevant technical society committees. Item 6. - 48 H B -1 74- EXHIBIT C The Recipient shall: • Prepare a List of Potential TAC Members that includes the names, companies, physical and electronic addresses, and phone numbers of potential members. The list will be discussed at the Kick-off meeting, and a schedule for recruiting members and holding the first TAC meeting will be developed. • Recruit TAC members. Ensure that each individual understands member obligations and the TAC meeting schedule developed in subtask 1.11. • Prepare a List of TAC Members once all TAC members have committed to serving on the TAC. • Submit Documentation of TAC Member Commitment (such as Letters of Acceptance) from each TAC member. Products: • List of Potential TAC Members • List of TAC Members • Documentation of TAC Member Commitment Subtask 1.11 TAC Meetings The goal of this subtask is for the TAC to provide strategic guidance for the project by participating in regular meetings, which may be held via teleconference. The Recipient shall: • Discuss the TAC meeting schedule with the CAM at the Kick-off meeting. Determine the number and location of meetings (in -person and via teleconference) in consultation with the CAM. • Prepare a TAC Meeting Schedule that will be presented to the TAC members during recruiting. Revise the schedule after the first TAC meeting to incorporate meeting comments. • Prepare a TAC Meeting Agenda and TAC Meeting Back-up Materials for each TAC meeting. • Organize and lead TAC meetings in accordance with the TAC Meeting Schedule. Changes to the schedule must be pre -approved in writing by the CAM. • Prepare TAC Meeting Summaries that include any recommended resolutions of major TAC issues. Products: • TAC Meeting Schedule (draft and final) • TAC Meeting Agendas (draft and final) • TAC Meeting Back-up Materials • TAC Meeting Summaries HB -175- Item 6. - 49 EXHIBIT C IV. TECHNICAL TASKS Products that require a draft version are indicated by marking "(draft and final)" after the product name in the "Products" section of the task/subtask. If "(draft and final)" does not appear after the product name, only a final version of the product is required. Subtask 1.1 (Products) describes the procedure for submitting products to the CAM. TASK 2 DEVELOP AEC DESIGN AND PLANNING TOOL The goal of this task is to develop an AEC Design and Planning Tool. The Recipient shall: • Conduct site investigations throughout the Oak View community to explore opportunities for multiple energy efficiency, control and generation technologies, analyze site constraints, opportunities and needs, meet and interview stakeholders. • Identify key building- and community -scale energy systems and strategies that could be employed in the AEC. Potential examples include: o Advanced HVAC strategies and controls. o Advanced lighting and controls. o Zero energy buildings. o Recovering waste heat from commercial and industrial buildings for use in residential heating. o Waste -to -energy district thermal systems. o Rooftop/community solar. • Develop various Building Energy Simulation Tools based on the possible building- and community -scale energy systems and strategies identified earlier in this task and submit to CAM for approval. • Develop the AEC Design and Planning Tool that will provide insights and recommendations on various integration and deployment options for the community. o Establish a baseline case from inputs including basic information on the community. o Include potential clean energy technology and integration strategy options. • Develop a draft System Integration Report which will include: results from the work performed earlier in this task, concepts for integration of the technologies, results from building and built environment simulations, and an overall draft design of the integrated suite of advanced energy technologies suggested for the community. • Submit the draft System Integration Report to key stakeholders, and CAM for review and feedback. • Revise the draft report based on feedback from key stakeholders, and CAM and submit a final System Integration Report to the CAM for approval. Products: Building Energy Simulation Tools AEC Design and Planning Tool System Integration Report (draft and final) TASK 3 DEVELOP SMART COMMUNITY MICROGRID ENERGY MANAGEMENT MODEL The goal of this task is to simulate and evaluate the impact and performance characteristics of the suite of clean energy technologies and systems that will be implemented in the AEC. The Recipient shall: Item 6. - 50 HB -176- EXHIBIT C Develop the Smart Community Microgrid Energy Management Model that will simulate and evaluate the impact and performance characteristics of the set of clean energy technologies that will be implemented in the AEC. The model will also evaluate multiple energy and resources dispatch control approaches and support the development of optimized control strategies in the AEC. Using the model developed earlier in the task, conduct building energy modeling and utilities analysis to: o Support overall energy needs analysis (current and future) o Perform risk/sensitivity analysis for load growth and fluctuations (e.g., weather, building usage changes, technology adoption, etc.) o Perform energy efficiency measure optimization, analyzing multiple energy efficiency strategies in concert with production and storage solutions for microgrid optimization from a control and first cost basis. o Perform demand management analysis, in concert with the energy efficiency analysis, to support effective active control of the microgrid with usage, production, and storage constraints on multiple time scales. Develop and submit to the key stakeholders, TAC, and CAM, a draft Model Development Report, including: o Discussion of the different modeling and analyses performed earlier in the task, and results from this work. o Recommended set of clean energy technologies. o Summary of control and management strategies investigated. o Optimized control and management strategies being recommended for the AEC. Prepare a Summary of the Draft Model Development Report presentation slide deck to present to the TAC, key stakeholders, and CAM at a TAC Meeting. Revise the report to incorporate feedback from the stakeholders, TAC, and CAM, and submit a final Model Development Report to the CAM for approval. Products: • Smart Community Microgrid Energy Management Model • Model Development Report (draft and final) • Summary of the Draft Model Development Report presentation slide deck TASK 4 DEVELOP CASE STUDIES ON VARIOUS INTEGRATION DESIGNS The goal of this task is to develop an optimized roadmap for the AEC, both technically and financially. Case studies will be developed to evaluate various designs and integration strategies for the AEC. The Recipient shall: • Develop AEC case studies with a combination of hypothetical energy efficiency measures, supplemental local renewable energy sources, energy storage systems, electric and gas utility systems, clean power generation system with combined heat and power, and smart -grid technologies, based on the recommendations and results gained in Task 3. The case studies will: o Quantify the economic and environmental benefits and technical performance. o Identify technical challenges encountered in each case. o Document any prospective regulatory, administrative, planning and permitting issues during the process. 1113 -177- Item 6. - 51 EXHIBIT C • Develop a technology and infrastructure plan for the AEC case studies, including: (1) microgrid controls platform, (2) communications infrastructure, (3) building controls integration, and (4) measurement and verification and metering infrastructure. • Draft an AEC Case Study Report, including, but not limited to: o A description of each of the case studies performed earlier in this task. o Delineation of the benefits and technical performance. o Summary of any prospective technical, regulatory, or administrative challenges encountered. o Summary of the planning and permitting process for each case study. o The technology and infrastructure plan for the AEC case studies. • Submit the draft AEC Case Study Report to the TAC, key stakeholders, and the CAM for review and comment. • Revise the report based on stakeholder, TAC, and CAM feedback, and submit a final AEC Case Study Report to the CAM for approval. • Prepare a CPR Report in accordance with subtask 1.3 (CPR Meetings). • Participate in a CPR meeting. Products: • AEC Case Study Report (draft and final) • CPR Report TASK 5 DEVELOP MASTER COMMUNITY DESIGN The goal of this task is to develop a master community design for both the Oak View AEC, as well as a more generic design to be used as a model for duplication in other communities. The Recipient shall: • Develop a draft Oak View AEC Master Community Design report for the community based upon the findings from the case studies. The design shall include, but not be limited to: o Descriptions of the proposed location(s) for the development. o Tentative maps, engineering designs of proposed buildings, streets, and community spaces. o Energy technologies to be deployed, any water conservation features and water saving technologies. o Potential interconnection sites and advanced energy infrastructure. o Technology deployment and phasing, procurement, funding and operations strategies. o How these elements are combined in a systems approach. • Submit a draft of the Oak View AEC Master Community Design report to the key stakeholders, TAC, and CAM for review and comments. • Prepare a Summary of the Draft Oak View AEC Master Community Design Report presentation slide deck to present to the key stakeholders, TAC, and CAM at a TAC Meeting. • Revise the Oak View AEC Master Community Design report based on stakeholder, TAC, and CAM feedback, and submit a final Oak View Master Community Design report to the CAM for approval. • Develop a generic Master Community Design report to serve as a model for other communities. Item 6. - 52 HB -178- EXHIBIT C Products: • Oak View AEC Master Community Design report (draft and final) • Summary of the Draft Oak View AEC Master Community Design presentation slide deck • Master Community Design report TASK 6 DEVELOP FINANCIAL AND BUSINESS MODELS The goal of this task is to develop financial and business model(s) for the Master Community Design that showcases innovative financing strategies that can help make the AEC more financially attractive in comparison with other similar community developments without advanced energy attributes. These models will explore the use of multiple low -interest financing mechanisms that are available to the City, as well as clean energy funding, that the City may garner from the air quality management district. The Recipient shall: • Develop financial and business model(s) for the City to consider for implementation of the AEC based on the case studies developed in Task 4, and the master design recommendations provided in Task 5. A combination of structures and finance sources will be examined to appropriately capture the flow of risks and benefits to all stakeholders in the community, including the utilities, local government, residents, business owners, etc. Multiple financial elements that will be assessed shall include, but not be limited to: o Private and public debt financing. o Equipment leases. o Power Purchase Agreements. o Property Assessed Clean Energy financing. o On -bill repayment mechanisms. o Insurance. • Collaborate with key project stakeholders (including the City), as well as financial institutions, to assess feasibility, risk, and total costs. • Develop a draft AEC Financial and Business Model Report to include, but not be limited to, a discussion on the models developed and results from earlier subtasks, as well as recommendations. • Submit the draft AEC Financial and Business Model Report to key stakeholders (including the City), the TAC, and the CAM for review and feedback. Revise the draft AEC Financial and Business Model Report based on feedback from the stakeholders, TAC, and CAM, and submit a final report to the CAM. • Upon feedback from the City as to which financial and business model they prefer, prepare and submit to the CAM, an AEC Financial and Business Model. Products: • AEC Financial and Business Model Report (draft and final) • AEC Financial and Business Model TASK 7 DEVELOP OUTREACH STRATEGY The goal of this task is to educate the building industry, government agencies, other communities and other interested parties on the benefits of using an integrated set of advanced energy technologies in an AEC to revitalize a community and produce educational benefits. HB - i i9_ Item 6. - 53 EXHIBIT C The Recipient shall: • Develop outreach strategies that produce educational benefits to key stakeholders and interested parties, on implementing an AEC. • Develop an Outreach Strategy Report that provides a plan that is specific to providing educational information about the benefits of an AEC for Huntington Beach and other communities throughout the state, and provide to the CAM for approval. • Implement the outreach and education in the community, according to the Outreach Strategy Report. • Summarize the activities conducted in earlier subtasks as part of the Outreach Strategy, in an Outreach Activity Report and submit it to the CAM for approval. Products: • Outreach Strategy Report • Outreach Activity Report TASK 8 EVALUATION OF PROJECT BENEFITS The goal of this task is to report the benefits resulting from this project. The Recipient shall: • Complete three Project Benefits Questionnaires that correspond to three main intervals in the Agreement: (1) Kick-off Meeting Benefits Questionnaire; (2) Mid-term Benefits Questionnaire; and (3) Final Meeting Benefits Questionnaire. • Provide all key assumptions used to estimate projected benefits, including targeted market sector (e.g., population and geographic location), projected market penetration, baseline and projected energy use and cost, operating conditions, and emission reduction calculations. Examples of information that may be requested in the questionnaires include: o For Product Development Proiects and Project Demonstrations: — Published documents, including date, title, and periodical name. — Estimated or actual energy and cost savings, and estimated statewide energy savings once market potential has been realized. Identify all assumptions used in the estimates. — Greenhouse gas and criteria emissions reductions. — Other non -energy benefits such as reliability, public safety, lower operational cost, environmental improvement, indoor environmental quality, and societal benefits. — Data on potential job creation, market potential, economic development, and increased state revenue as a result of the project. — A discussion of project product downloads from websites, and publications in technical journals. — A comparison of project expectations and performance. Discuss whether the goals and objectives of the Agreement have been met and what improvements are needed, if any. o Additional Information for Product Development Projects: — Outcome of product development efforts, such copyrights and license agreements. Item 6. - 54 HB -180- EXHIBIT C — Units sold or projected to be sold in California and outside of California. — Total annual sales or projected annual sales (in dollars) of products developed under the Agreement. — Investment dollars/follow-on private funding as a result of Energy Commission funding. — Patent numbers and applications, along with dates and brief descriptions. o Additional Information for Product Demonstrations: — Outcome of demonstrations and status of technology. — Number of similar installations. — Jobs created/retained as a result of the Agreement. o For Information/Tools and Other Research Studies: — Outcome of project. — Published documents, including date, title, and periodical name. — A discussion of policy development. State if the project has been cited in government policy publications or technical journals, or has been used to inform regulatory bodies. — The number of website downloads. — An estimate of how the project information has affected energy use and cost, or have resulted in other non -energy benefits. — An estimate of energy and non -energy benefits. — Data on potential job creation, market potential, economic development, and increased state revenue as a result of project. — A discussion of project product downloads from websites, and publications in technical journals. — A comparison of project expectations and performance. Discuss whether the goals and objectives of the Agreement have been met and what improvements are needed, if any. • Respond to CAM questions regarding responses to the questionnaires. The Energy Commission may send the Recipient similar questionnaires after the Agreement term ends. Responses to these questionnaires will be voluntary. Products: • Kick-off Meeting Benefits Questionnaire • Mid-term Benefits Questionnaire • Final Meeting Benefits Questionnaire TASK 9 TECHNOLOGY/KNOWLEDGE TRANSFER ACTIVITIES The goal of this task is to develop a plan to make the knowledge gained, experimental results, and lessons learned available to the public and key decision makers. The Recipient shall: • Prepare an Initial Fact Sheet at start of the project that describes the project. Use the format provided by the CAM. HB -181- Item 6. - 55 EXHIBIT C • Prepare a Final Project Fact Sheet at the project's conclusion that discusses results. Use the format provided by the CAM. • Prepare a Technology/Knowledge Transfer Plan that includes: o An explanation of how the knowledge gained from the project will be made available to the public, including the targeted market sector and potential outreach to end users, utilities, regulatory agencies, and others. o A description of the intended use(s) for and users of the project results. o Published documents, including date, title, and periodical name. o Copies of documents, fact sheets, journal articles, press releases, and other documents prepared for public dissemination. These documents must include the Legal Notice required in the terms and conditions. Indicate where and when the documents were disseminated. o A discussion of policy development. State if project has been or will be cited in government policy publications, or used to inform regulatory bodies. o The number of website downloads or public requests for project results. o Additional areas as determined by the CAM. • Conduct technology transfer activities in accordance with the Technology/Knowledge Transfer Plan. These activities will be reported in the Progress Reports. • When directed by the CAM, develop Presentation Materials for an Energy Commission - sponsored conference/workshop(s) on the project. • When directed by the CAM, participate in annual EPIC symposium(s) sponsored by the California Energy Commission. • Provide at least (6) six High Quality Digital Photographs (minimum resolution of 1300x500 pixels in landscape ratio) of pre and post technology installation at the project sites or related project photographs. • Prepare a Technology/Knowledge Transfer Report on technology transfer activities conducted during the project. Products: • Initial Fact Sheet (draft and final) • Final Project Fact Sheet (draft and final) • Presentation Materials (draft and final) • High Quality Digital Photographs • Technology/Knowledge Transfer Plan (draft and final) • Technology/Knowledge Transfer Report (draft and final) V. PROJECT SCHEDULE Please see the attached Excel spreadsheet. Item 6. - 56 HB -182- tANlblI L Agreement Term: 06-15-2016 to 07-31-2018 Within this Scope of Work, "days" means working days. Changes to due dates must be approved in writing by the CAM, and may require approval by the Energy Commission's Executive Director or his/her designee. Task/ Task/Subtask Name Meeting Name Product(s) Due Date Subtask # 1 General Project Tasks 1.1 Products 1.2 Kick-off Meeting Kick-off Meeting 10/10/2016 Updated Project Schedule (if applicable) 7 days after determination of the need to update the documents Updated List of Match Funds (if applicable) Updated List of Permits (if applicable) CAM Product Kick-off Meeting Agenda 7 days prior to the kick-off meeting 1.3 CPR Meeting CPR Meeting #1 10/25/2017 CPR Report 15 days prior to the CPR Task Products meeting CAM Products CPR Agenda 5 days prior to the CPR List of Expected CPR Participants meeting Schedule for Providing a Progress Determination 15 days after CPR meeting Progress Determination As indicated in the Schedule for Providing a Progress Determination 1.4 Final Meeting Final Meeting 6/10/2018 Final Meeting Agreement Summary (if applicable) Schedule for Completing Agreement 7 days after the final meeting Closeout Activities All Draft and Final Written Products 1.5 Progress Reports and Progress Reports 10 days after the first of each Invoices month Invoices 10 days after the first of each month or quarter 1.6.1 Final Report Outline Draft Final Report Outline 1/31/2018 Final Report Outline 1 week following suggested edits from CAM on Draft Final Report Outline CAM Product Style Manual At least 2 months prior to the final report outline due date Comments on Draft Final Report 10 days after receipt of the Outline Draft Final Report Outline Approval of Final Report Outline 10 days after receipt of the Final Report Outline 1.6.2 Final Report Draft Final Report 3/30/2018 Final Report 5/31/2018 CAM Products Comments on Draft Final Report 30 days after receipt of the Outline Draft Final Report 1.7 Match Funds Match Funds Status Letter 2 days prior to the kick-off meeting Supplemental Match Funds Notification 10 days after receipt of Letter(if applicable) additional match funds Match Funds Reduction Notification 10 days after any reduction of Letter (if applicable) match funds HB - j g;_ Item 6. - 57 txhlltlI U Task/ Subtask # Task/Subtask Name Meeting Name Product(s) Due Date 1.8 Permits Permit Status Letter 2 days prior to the kick-off meeting Updated List of Permits (if applicable) 10 days after determination of the need for a new permit Updated Schedule for Acquiring Permits if a licable Copy of Each Approved Permit (if applicable) 7 days after receipt of each permit 1.9 Subcontracts Draft Subcontracts (if required by the CAM) As determined by the CAM Final Subcontracts 1.10 Technical Advisory Committee (TAC) List of Potential TAC Members 2 days prior to the kick-off meeting List of TAC Members 7 days after finalization of the TAC Documentation of TAC Member Commitment 7 days after receipt of the documentation 1.11 TAC Meetings TAC Meeting #1 7/31/2017 TAC Meeting #2 1/25/2018 Draft TAC Meeting Schedule 20 days after the kickoff meeting Final TAC Meeting Schedule 10 days after the first TAC meeting Draft TAC Meeting Agendas 20 days prior to each TAC meeting TAC Meeting Back-up Materials Final TAC Meeting Agenda 7 days prior to each TAC meetin TAC Meeting Summaries 10 days after each TAC meeting Technical Tasks 2 Develop AEC Design and Planning Tool Building Energy Simulation Tools 4/5/2017 AEC Design and Planning Tool 4/5/2017 Draft System Integration Report 5/5/2017 Final System Integration Report 6/5/2017 3 Develop Smart Community Microgrid Energy Management Model Smart Community Microgrid Energy Management Model 7/10/2017 Draft Model Development Report 7/10/2017 Final Model Development Report 8/31 /2017 Summary of the Draft Model Development Report presentation slide deck 2 days prior to the 1 st TAC Meeting 4 Develop Case Studies on Various Integration Designs CPR Meeting Draft AEC Case Study Report Final AEC Case Study Report 10110/2017 11 /30/2017 5 Develop Master Community Design Draft Oak View AEC Master Community Design Report 1 /10/2018 Final Oak View AEC Master Community Design Report 3/15/2018 Summary of the Draft Oak View AEC Master Community Design presentation slide deck 2 days prior to the 2nd TAC Meeting Master Community Design Report 3/30/2018 6 Develop Financial and Business Models Draft AEC Financial and Business Model Report 3/15/2018 Final AEC Financial and Business Model Report 4/30/2018 AEC Financial and Business Model 4/30/2018 7 Develop Outreach Strategy Outreach Strategy Report 10/31 /2017 Outreach Activity Report 5/31/2018 Item 6. - 58 xB - 1 84- txHIbII U Task/ Task/Subtask Name Meeting Name Product(s) Due Date Subtask # of Project Benefits I lKick-off Meeting Benefits Questionnaire 1 10/31/2016 Mid-term Benefits Questionnaire 7/31/2017 Final Meeting Benefits Questionnaire 5/31/2018 KB _1 8;- Item 6. - 59 Task/ Task/Subtask Name Meeting Name Product(s) Due Date Subtask # 9 Technology/Knowledge Draft Initial Fact Sheet 11/15/2016 Final Initial Fact Sheet 2 weeks after receipt of CAM Transfer Activities feedback on Draft Initial Fact Sheet Draft Final Project Fact Sheet 4/2/2018 Final Project Fact Sheet 5/31 /2018 Draft Presentation Materials 1 week before the scheduled meeting or outreach event, as directed by CAM Final Presentation Materials 2 days before the scheduled meeting or outreach event, as directed by CAM High Quality Digital Photographs As directed by CAM Draft Technology/Knowledge Transfer 9/1/2017 Plan Final Technology/Knowledge Transfer 2 weeks after receipt of CAM Plan feedback on Draft Technology/Knowledge Transfer Plan Draft Technology/Knowledge Transfer 4/30/2018 ort l Technology/Knowledge Transfer 5/31/2018 Report Item 6. - 60 HQ -186- txrlIbI I U Funds Spent in CA The Regents of the University of California, Irvine Funds Spent in CA Total Energy Percentage of Commission Amount of Funds to be Spent Funds to be Reimbursable in California Spent in Share California $ 1,500,000.00 $ 1,234,274.00 82% KB -187- Item 6. - 61 tAl-1 I b I I V Category Budget Name of Organization National Renewable Energy Laboratory ❑ Contractor/Recipient [2] Subcontractor ❑ Small Business ❑ Micro Business ❑ Disabled Veteran Business Enterprise Cost Category Energy Commission Reimbursable Share Match Share Total Direct Labor $ 123,060 $ 104,005 $ 227,065 Fringe Benefits $ 40,487 $ 34,217 $ 74,704 Total Labor $ 163,547 $ 138,222 $ 301,769 Travel $ - $ 8,900 $ 8,900 Equipment $ - $ - $ - Materials/Miscellaneous $ - $ - $ - Subcontractors $ - $ - $ - Total Other Direct Costs $ - $ 8,900 $ 8,900 Indirect Costs $ 186,453 $ 52,878 $ 239,331 Profit (not allowed for grant recipients) $ _ $ _ $ _ Total Indirect and Profit $ 186,453 $ 52,878 $ 239,331 Grand Totals $ 350,000 $ 200,000 $ 550,000 Amount of Funds Spent in CA $ 88,834 Percentage of Funds Spent in CA 25% Item 6. - 62 HB -188- EXHIBIT C EXHIBIT C EPIC UC TERMS AND CONDITIONS 1. Grant Agreement This grant agreement (Agreement) between the California Energy Commission (Energy Commission, or Commission) and the Recipient is funded by the Electric Program Investment Charge (EPIC), an electricity ratepayer surcharge authorized by the California Public Utilities Commission (CPUC). Project refers to the entire effort undertaken and planned by the Recipient, including the work co -funded by the Commission. The project may coincide with or extend beyond the Agreement period. Project tasks refer to the work elements of the project. Typically, there are distinct projects tasks within the project being paid for by the Commission under this Agreement. This Agreement is comprised of the grant funding award, the Terms and Conditions, and all attachments. These Terms and Conditions are standard requirements for EPIC grant awards. The Energy Commission may impose special conditions in this grant Agreement which address the unique circumstances of this project. Special conditions that conflict with these standard provisions take precedence. Any special conditions are attached to this Agreement. All work and/or the expenditure of funds (Energy Commission -reimbursed and/or match share) must occur within the approved term of this Agreement. The Energy Commission cannot authorize any payments until all parties sign this Agreement. The start term of this Agreement is either the specified start term or the date the Energy Commission signs the Agreement, whichever is later. The Energy Commission will only sign the Agreement after the Recipient signs it and it has been approved at an Energy Commission Business Meeting. 2. Attachments and References The following are attached and hereby expressly incorporated into this Agreement. A. The funding solicitation for the project supported by this Agreement B. The Recipient's proposal submitted in response to the solicitation, but in the event of a conflict between the proposal and this Agreement, this Agreement prevails C. Confidentiality Exhibit (if applicable) D. Intellectual Property Exhibit (if applicable) E. Special Conditions (if applicable) The federal regulations identified below are incorporated by reference as part of this Agreement. These Terms and Conditions and any Special Conditions take precedence over the regulations: 2 CFR Part 200 (See cost principles in Subpart E, Sections 200.400 et seq. See procurement standards in Subpart D, Sections 200.317 et seq.) HB -189- Item 6. - 63 EXHIBIT C 3. Applicable Laws Recipient agrees to abide by all federal, state, and local laws and regulations applicable to the project even if they are not stated in this Agreement. Recipient also asserts that it follows the Information Practices Act ("IPA") as codified at California Civil Code sections 1798 et seq. To the extent that Recipient will collect or otherwise have access to Personal Information as defined in the IPA in carrying out the Scope of Work of this Agreement, Recipient will follow the requirements of the IPA. Subject to applicable IPA disclosure restrictions, other applicable pre-existing use and disclosure restrictions identified in Attachment 1, or any other provisions in this Agreement, including but not limited to Confidentiality, Recipient may provide the Commission access to Personal Information collected under this Agreement only for the purpose of verifying aspects of the Recipient's analysis. The Commission takes no ownership interest in or license to the Personal Information. 4. Due Diligence The Recipient is required to take timely actions which, taken collectively, move this project to completion. The Commission Agreement Manager will periodically evaluate the schedule for completion of Scope of Work tasks. If the Commission Agreement Manager determines (1) the Recipient is not being diligent in completing the tasks in the Scope of Work or (2) the time remaining in the funding award is insufficient to complete all project work tasks not later than the Agreement term date, the Project Manager shall consult with the Recipient to determine whether the tasks will be completed according to schedule. If completion cannot be completed on schedule or by a mutually agreeable extension in time, the Energy Commission may, without prejudice to any of its remedies, terminate this Agreement in accordance with the Termination provisions stated in Section 12. 5. Products Unless otherwise directed, draft copies of all Products identified in the Scope of Work shall be submitted to the Energy Commission's Accounting Office at the address below. The Accounting Office will forward Products to the Commission Agreement Manager for review and comment. The Recipient will submit an original and two copies of the final version of all Products to the Accounting Office. California Energy Commission Accounting Office 1516 Ninth Street, MS-2 Sacramento, CA 95814 6. Reports A. Submission of Reports All Reports will be submitted to the Accounting Office at the address listed in Section 5 above. The Commission Agreement Manager (CAM) will provide the reporting components, style, and formatting requirements to the Principal Investigator. Item 6. - 64 HB -190- EXHIBIT C B. Progress Reports The Recipient shall prepare progress Reports on the schedule provided and in the manner and form specified in the Scope of Work. The Recipient shall prepare progress Reports, which summarize all grant activities conducted by the Recipient for the reporting period, including an assessment of the ability to complete the project within the current budget and any anticipated cost overruns. C. Final Reports The Recipient shall prepare a final Report outline, draft final Report and final Report on the schedule provided in the Scope of Work. The final Report shall describe the original purpose, approach, results and conclusions of the work done under this Agreement. The Payment Request for the final payment (including any retention) may only be submitted after the final Report is completed and the Commission Agreement Manager has verified that all work has been completed in accordance with the requirements of this Agreement. D. Rights in Reports The Energy Commission retains ownership and copyright rights in all Reports produced and delivered pursuant to this Agreement, including the right to grant others any or all copyright rights in such materials. The Energy Commission grants Recipient a fully paid -up, royalty -free, nonexclusive, nontransferable, nonsublicensable, irrevocable license to reproduce, prepare derivative works, distribute copies, perform publicly, and display publicly such Reports for educational and research purposes and to allow other educational and nonprofit institutions to do so for educational and research purposes. E. Failure to Comply with Reporting Requirements Failure to comply with the reporting requirements contained in this award will be considered a material noncompliance with the terms of the award. 7. Legal Statement on Reports and Products No Product or Report produced as a result of work funded by this program shall be represented to be endorsed by the Energy Commission, and all such Products or Reports shall include the following statement: LEGAL NOTICE HB -191- Item 6. - 65 EXHIBIT C This document was prepared as a result of work sponsored by the California Energy Commission. It does not necessarily represent the views of the Energy Commission, its employees, or the State of California. The Energy Commission, the State of California, its employees, contractors, and subcontractors make no warranty, express or implied, and assume no legal liability for the information in this document; nor does any party represent that the use of this information will not infringe upon privately owned rights. This report has not been approved or disapproved by the Energy Commission nor has the Energy Commission passed upon the accuracy of the information in this report. 8. Amendments A. Procedure for Requesting Changes The Recipient must submit a written request to the Commission Agreement Manager for any change to the Agreement. The request must include: A brief summary of the proposed change; ii. A brief summary of the reason(s) for the change; and iii. The revised section(s) of the Agreement, with changes made in underline/ strikeout format. B. Approval of Changes Certain changes to the Agreement (e.g., changes that increase the Agreement amount or substitute one Recipient for another) must be approved at a Commission business meeting or by the Executive Director (or his/her designee). Generally, changes that are not significant to the Agreement may be documented in a Letter of Agreement signed by both parties (electronic signatures are acceptable). See Attachment 2 for a sample Letter of Agreement. The Contract Agreement Manager or Contract Agreement Officer will provide the Recipient with guidance regarding the level of Commission approval required for a proposed change. C. Personnel or Subcontractor Changes All changes below require advance written approval by the Commission Agreement Manager, in addition to the appropriate level of Commission approval as described in subsection B. Replacement of Key Personnel, Subcontractors, and Vendors The Commission Agreement Manager must provide advance written approval of the replacement of Key Personnel, Key Subcontractors, and Key Vendors who are both identified in the Agreement and are critical to the outcome of the project, such as the Project Manager. ii. Assignment of New Personnel to an Existing Job Classification Item 6. - 66 FIB - 1 92- EXHIBIT C If the Recipient or a subcontractor seeks to assign new personnel who are critical to the outcome of the project to a job classification identified in Exhibit B, the Recipient or subcontractor must submit the individual's resume and proposed job classification and rate to the Commission Agreement Manager for approval. The proposed rate may not exceed the maximum rate identified for the job classification. Neither the Recipient nor any subcontractor may use the job classifications or rates of their subcontractors for personnel. iii. Promotion of Existing Personnel to an Existing Job Classification Recipient or subcontractor personnel that are identified in Exhibit B may be assigned to a higher -paying job classification identified in Exhibit B. iv. Addition of Subcontractors In order to add subcontractors to Exhibit B, the Commission Agreement Manager must submit a "Subcontractor Addition" form to the Commission Agreement Officer. The form identifies the new subcontractor, bidding method used (competitive or non-competitive), and the tasks the new subcontractor will perform. V. Addition of Job Classifications vi. Increased Rates that Exceed the Rates Identified in Exhibit B. vii. Increased total costs above the total grant award amount. The Commission will not be liable for expenses exceeding the total grant award amount, unless an amendment has been approved. 9. Contracting and Procurement Procedures This section provides general requirements for an agreement between the Recipient and a third party ("subcontractor"). Subcontracting criteria are specified in the applicable federal regulations incorporated by reference in this Agreement. The Energy Commission will defer to the Recipient's own regulations and procedures as long as they reflect applicable state and local laws and regulations and are not in conflict with the minimum standards specified in this Agreement and any Code of Federal Regulations incorporated by reference in this Agreement. Upon request, the Recipient must submit to the Commission Agreement Manager a copy of all solicitations for services or products required to carry out the terms of this Agreement, copies of the proposals or bids received, and copies of subcontracts executed. The Recipient is responsible for handling all contractual and administrative issues arising out of or related to any subcontracts it enters into under this Agreement. All subcontracts except those with U.S. Department of Energy National Laboratories must incorporate all of the following: H B -193- Item 6. - 67 EXHIBIT C A. A clear and accurate description of the material, products, or services to be procured as well as a detailed budget and timeline. B. Provisions which allow for administrative, contractual, or legal remedies in instances where subcontractors violate or breach contract terms, and provide for such sanctions and penalties as may be appropriate. C. Provisions for termination by the Recipient including termination procedures and the basis for settlement. D. Any additional requirements specified in the federal regulations incorporated by reference in this Agreement. E. Further assignments shall not be made to any third or subsequent tier subcontractor without additional advance written consent of the Energy Commission's Grants Officer. All subcontracts except those with U.S. Department of Energy National Laboratories must also incorporate language conforming to the following provisions specified in this Agreement and contain the following provisions: A. Standard of Performance B. Nondiscrimination C. Indemnification D. Pre -Existing Intellectual Property, Independently Funded Intellectual Property, and Pre-existing Data E. Intellectual Property F. Royalty Payments to the Energy Commission G. Travel and Per Diem H. Equipment I. Recordkeeping, Cost Accounting, and Auditing J. Access to Sites and Records K. Legal Notice L. Survival of the following sections: i. Recordkeeping, Cost Accounting and Auditing ii. Equipment iii. Pre -Existing Intellectual Property, Independently Funded Intellectual Property, and Pre-existing Data iv. Intellectual Property V. Royalty Payments to the Energy Commission vi. Access to Sites and Records Item 6. - 68 HB _194_ EXHIBIT C Nothing contained in this Agreement or otherwise, shall create any contractual relation between the Energy Commission and any subcontractors, and no subcontract shall relieve the Recipient of its responsibilities and obligations hereunder. Recipient shall be responsible for establishing and maintaining contractual agreements with and reimbursement of each subcontractor for work performed in accordance with the terms of this Agreement. All subcontracts entered into pursuant to this Agreement shall be subject to examination and audit by the Bureau of State Audits for a period of three years after final payment under this Agreement. Failure to comply with the above requirements may result in the termination of this Agreement. 10. Permits and Clearances The Recipient is responsible for ensuring all necessary permits and environmental documents are prepared and clearances are obtained from the appropriate agencies. 11. Equipment Title to equipment acquired by the Recipient with grant funds shall vest in the Recipient. The Recipient shall use the equipment in the project or program for which it was acquired as long as needed, whether or not the project or program continues to be supported by grant funds and shall not encumber the property without Commission Agreement Manager approval. Recipient should refer to the applicable federal regulations incorporated by reference in this Agreement for additional equipment requirements. 12. Termination A. Default In the event of any default of this Agreement, the Commission may, without prejudice to any of its other legal remedies, terminate this Agreement upon five (5)-days written notice to UC. B. For Cause The Commission may, for cause, and at its option, terminate this Agreement upon giving thirty (30)-days advance written notice to UC. In such event, UC agrees to use all reasonable efforts to mitigate its expenses and obligations. The term "for cause" includes, but is not limited to, the following reasons: Loss or redirection of State or Federal funding for this Agreement; ii. Significant change in State or Commission policy such that the work or Product being funded would not be supported by the Commission; H B -195- Item 6. - 69 EXHIBIT C iii. Change in Commission's staffing such that the work or Product being funded can be done by staff of the Commission. C. Allowable Costs The federal regulations incorporated into this agreement shall be used to determine allowable termination costs, but not in excess of the total amount of the Agreement. 13. Travel and Per Diem A. Recipient shall be reimbursed for travel and per diem for trips in accordance with the Regents -approved rates for University of California (UC) employees. Recipient shall provide a copy of the current Regents -approved rates to the Energy Commission upon request. Travel expenses in excess of Regents -approved rates cannot be reimbursed. B. Those trips already identified in the Budget section are considered approved when this Agreement goes into effect. Travel not listed in the Budget section of this Agreement shall require prior written authorization from the Commission Agreement Manager. When requesting such approval, Recipient will identify who shall travel, the purpose of travel and the destination. C. Any Department of Energy (DOE) authorized travel shall be reimbursed on the same basis as the DOE approved rates in effect during this Agreement. D. UC must document travel expenses in its financial records as follows: i. Expenses must be detailed using the current UC Regents / DOE - approved rates. ii. Expenses must be listed by trip, including dates and times of departure and return. iii. UC/DOE must retain receipts for travel expenses claimed for audit and verification. E. Travel not listed in the Budget section of this Agreement shall require prior written authorization, via e-mail or other means, from the Commission Agreement Manager. 14. Standard of Performance A. Recipient, its subcontractors and their employees in the performance of Recipient's work under this Agreement shall be responsible for exercising the degree of skill and care required by customarily accepted good professional practices and procedures used in scientific and engineering research fields. Item 6. - 70 H B -196- EXHIBIT C B. The failure of a project to achieve the technical or economic goals stated in the Scope of Work is not a basis for the Energy Commission to determine that the work is unacceptable, unless the work conducted by the Recipient or its subcontractors is deemed by the Energy Commission to have failed the foregoing standard of performance. C. In the event that Recipient or its subcontractor fails to perform in accordance with the foregoing standard of performance, the Commission Agreement Manager and the Recipient Project Manager shall seek to negotiate in good faith an equitable resolution satisfactory to both parties. D. Nothing contained in this section is intended to limit any of the rights or remedies which the Energy Commission may have under law. 15. Payment of Funds A. Payment Requests Unless indicated otherwise in Special Conditions, the Recipient may request payment from the Energy Commission at any time during the term of this Agreement, but no more frequently than monthly, although it is preferred that payment requests be submitted with the progress reports. Payments will generally be made on a reimbursement basis for Recipient's expenditures, i.e., after the Recipient has paid for a service, product, supplies, or other approved budget item. No reimbursement for food or beverages shall be made other than allowable per diem charges. Funds in this award have a limited period in which they must be expended. All Recipient expenditures must occur within the approved term of this Agreement. B. Advance Payment UC may make advance payments to UC campuses, Federal Laboratories, California State Agencies, the California State University and Community College systems, and Federal Agencies. UC shall not provide advance payment without prior written approval from both the Commission Agreement Manager and the Commission Agreement Officer. ii. UC can submit the first invoice for advance payment at any time. Thereafter, Contractor shall submit all invoices for advance payment on a quarterly basis. iii. If the estimated period of performance exceeds ninety (90) days and the estimated cost exceeds $25,000, the Commission shall advance funds incrementally. In such a case, UC will initially invoice the Commission in an amount sufficient to permit the work to proceed for one hundred and eighty (180) days and thereafter invoice the Commission to maintain approximately a ninety (90) day period that is funded in advance. HB -197- Item 6. - 71 EXHIBIT C iv. A reconciliation report, reflecting actual costs, shall be submitted every quarter after the initial advance payment. This report is due within 30 days after the end of each quarter. The reconciliation report shall include detail as provided in the Payment Request Format clause below. V. Other than the initial advance payment, the Commission Agreement Manager will approve advance payments provided that the Commission Agreement Manager has received and accepted the Reports, and any other required Products for the previous period. vi. Upon completion or termination of this Agreement, Contractor shall refund any excess funds to the Commission within sixty (60) calendar days. C. Payment Request Format A request for payment shall consist of, but not be limited to, the following: i. Agreement number, date prepared, and billing period. ii. Operating expenses, including equipment, travel, miscellaneous, and materials. iii. A report of Match Funds expenditures (actual cash and in -kind services). iv. Fees (fringe, direct and indirect overheads, general and administrative, profit, etc.). Identify actual and cumulative amounts by budget category. V. A report of the in -State expenditures associated with the request for payment and the cumulative -to -date of in -State expenditures for the project. This report can be listed on the request for payment or appended to it as an attachment. vi. A copy of the UC General Ledger for the request for payment period. The Energy Commission will accept computer -generated or electronically transmitted invoices without backup documentation provided that the Recipient sends a hardcopy the same day. Recipient shall submit all invoices to the following address: California Energy Commission Accounting Office EPIC Grant Program 1516 Ninth Street, MS-2 Sacramento, CA 95814 D. Release of Funds Item 6. - 72 xB -198- EXHIBIT C Each invoice is subject to both Commission Agreement Manager and Commission Grants Officer approval. The Commission Agreement Manager will not process any payment request during the Agreement term if the following conditions have not been met: All required Products and Reports have been submitted and are in accordance with the Standard of Performance Clause. ii. All applicable special conditions have been met. iii. All appropriate permits or permit waivers from governmental agencies have been issued to the Recipient and copies have been received by the Commission Agreement Manager. Payments shall be made to the Recipient only for undisputed invoices. An undisputed invoice is an invoice executed by the Recipient for project expenditures, that meets all payment conditions of the Agreement, and for which additional evidence is not required to make payment. The invoice may be disputed if all Products due for the billing period have not been received and approved, if the invoice is inaccurate, or if it does not comply with the terms of this Agreement. If the invoice is disputed the Recipient will be notified via a Dispute Notification Form within 15 working days of receipt of the invoice. On any disputed invoice, the Commission shall withhold payment only on that portion of the invoice that is disputed. E. Indirect Costs For any of the 10 University of California (UC) campuses and the UC Office of the President, whether funds are received through a prime award or through a subaward from another UC location, the maximum indirect cost rate allowable under this Agreement is 25% of Modified Total Direct Cost (MDTC). F. Retention No retention will be withheld under this Agreement. G. State Controller's Office Payments are made by the State Controller's Office. 16. Recordkeeping, Cost Accounting, and Auditing A. Cost Accounting Recipient agrees to keep separate, complete, and correct accounting of the costs involved in completing the grant and match funded (if any) portion of this project. The Energy Commission or its agent shall have the right to examine Recipient's books of accounts at all reasonable times to the extent and as is necessary to verify the accuracy of Recipient's reports. B. Accounting Procedures H B -199- Item 6. - 73 EXHIBIT C The Recipient's costs shall be determined on the basis of the Recipient's accounting system procedures and practices employed as of the effective date of this Agreement, provided that the Recipient shall use generally accepted accounting principles and cost reimbursement practices. The Recipient's cost accounting practices used in accumulating and reporting costs during the performance of this Agreement shall be consistent with the practices used in estimating costs for any proposal to which this Agreement relates; provided that such practices are consistent with the other terms of this Agreement and provided, further, that such costs may be accumulated and reported in greater detail during performance of this Agreement. The Recipient's accounting system shall distinguish between direct costs and indirect costs. All costs incurred for the same purpose, in like circumstances, are either direct costs only or indirect costs only with respect to costs incurred under this Agreement. C. Allowability of Costs Allowable Costs The costs for which the Recipient shall be reimbursed under this Agreement include all costs, direct and indirect, incurred in the performance of work that are identified in the grant Budget. Costs must be incurred within the term of the Agreement. Factors to be considered in determining whether an individual item of cost is allowable include (i) reasonableness of the item, (ii) appropriate use of the allocability of the item to the work, (iii) applicable federal cost principles incorporated by reference in this Agreement, and (iv) the terms and conditions of this Agreement. ii. Unallowable Costs The following is a description of some specific items of cost that are unallowable; provided, however, that the fact that a particular item of cost is not included shall not mean that it is allowable. Details concerning the allowability of costs are available from the Energy Commission's Accounting Office. a. Profit or Fees, Contingency Costs, Imputed Costs, Fines and Penalties, Losses, Excess Profit Taxes and increased rates for this Agreement (if not otherwise approved by the Energy Commission as described in Section 8 of this Agreement). b. The Energy Commission will pay for state or local sales or use taxes on expenditures. The State of California is exempt from Federal excise taxes. iii. Except as provided for in this Agreement, Recipient shall use the federal regulations incorporated by reference in this Agreement when determining allowable and unallowable costs. In the event of a conflict, this Agreement takes precedence over the federal regulations. Item 6. - 74 HH -200- EXHIBIT C D. Audit Rights Recipient shall maintain books, records, documents, and other evidence, based on the procedures set forth above, sufficient to reflect properly all costs claimed to have been incurred in performing this Agreement. The Energy Commission, an agency of the state or, at the Energy Commission's option, a public accounting firm designated by the Energy Commission, may audit such accounting records at all reasonable times with prior notice by the Energy Commission. The Energy Commission shall bear the expense of such audits. It is the intent of the parties that such audits shall ordinarily be performed not more frequently than once every twelve (12) months during the performance of the work and once at any time within three (3) years following payment by the Energy Commission of the Recipient's final invoice. However, performance of any such interim audits by the Energy Commission does not preclude further audit. Recipient agrees that the Energy Commission, the Department of General Services, the Bureau of State Audits, or their designated representative shall have the right to review and to copy any records and supporting source documentation pertaining to the performance of this Agreement. Recipient agrees to maintain such records for possible audit for a minimum of three (3) years after final payment, unless a longer period of record retention is stipulated. Recipient agrees to allow the auditor(s) access to such records during normal business hours and to allow interviews of any employees who might reasonably have information related to such records. Further, Recipient agrees to include a similar right of the state to audit records and interview staff in any subcontract related to performance of this Agreement. E. Refund to the Energy Commission If the Energy Commission determines, that any invoiced and paid amounts exceed the actual allowable incurred costs, Recipient shall repay such amounts to the Energy Commission within thirty (30) days of request or as otherwise agreed by the Energy Commission and Recipient. If the Energy Commission does not receive such repayments, the Energy Commission shall be entitled to withhold further payments under this Agreement to the Recipient or seek repayment from the Recipient. F. Match Funds If the Budget includes a Match Funds requirement, the Recipient's commitment of resources, as described in this Agreement, is a required expenditure for receipt of Energy Commission funds. Grant funds will be released only if the required percentages of Match Funds are expended. The Recipient must maintain accounting records detailing the expenditure of the Match Funds (actual cash and in -kind services) reported as Match Funds expenditures on the Recipient's request for payment. HB _201 - Item 6. - 75 EXHIBIT C 17. Indemnification Recipient shall defend, indemnify and hold the State of California and its agencies (including the Energy Commission and the California Public Utilities Commission), their respective officers, employees and agents harmless from and against any and all liability, loss, expense, attorneys' fees, or claims for injury or damages arising out of the performance of this Agreement but only in proportion to and to the extent such liability, loss expense, attorneys' fees or claims for injury or damages are caused by or result from the negligent or intentional acts or omissions of Recipient, its officers, agents or employees. The Energy Commission shall defend, indemnify and hold Recipient, its officers, employees and agents harmless from and against any and all liability, loss expense, attorneys' fees or claims for injury or damages arising out of the performance of this Agreement but only in proportion to and to the extent such liability, loss, expense, attorneys' fees or claims for injury or damages are caused by or result from the negligent or intentional acts or omissions of the State of California, its officers, agents or employees. 18. Workers' Compensation Insurance A. Recipient hereby warrants that it carries Worker's Compensation Insurance for all of its employees who will be engaged in the performance of this Agreement, and agrees to furnish to the Commission Agreement Manager satisfactory evidence of this insurance at any time the Commission Agreement Manager may request. B. If Recipient is self -insured for worker's compensation, it hereby warrants such self-insurance is permissible under the laws of the State of California and agrees to furnish to the Commission Agreement Manager satisfactory evidence of this insurance at any time the Commission Agreement Manager may request. 19. Confidentiality A. Identification of Confidential Information For purposes of this Agreement, "Confidential Information" means any data or information that is proprietary to the Disclosing Party, allowed to be kept confidential under the California Public Records Act (Government Code §6250 et seq.) or other applicable law, and not publicly known at the time of disclosure to the receiving party. The obligations contained in this clause shall not apply to any confidential information which: a. After disclosure becomes publicly known otherwise than through a breach by the receiving arty, its officers, employees, agents or contractors; Item 6. - 76 11B -202- EXHIBIT C b. Can be shown by reasonable proof by the receiving party to have reached its hands otherwise than by being communicated by the other party including being known to it prior to disclosure, or having been developed by or for it wholly independently of the other party or having been obtained from a third party without any restriction on disclosure on such third party of which the recipient is aware, having made due enquiry; c. Is required by law, regulation or order of a competent authority (including any regulatory or governmental body or securities exchange) to be disclosed by the receiving party, provided that, where practicable, the disclosing party is given reasonable advance notice of the intended disclosure and provided that the relaxation of the obligations of confidentiality shall only last for as long as necessary to comply with the relevant law, regulation or order and shall apply solely for the purposes of such compliance; or d. Is approved for release, in writing, by an authorized representative of the disclosing party. ii. Attachment 1 to this Exhibit contains a description of the Products and Reports which contain Confidential Information, per agreement of the Recipient and the Energy Commission. The Energy Commission will not disclose the Confidential Information, except as provided in subsection B. The parties shall redact the Confidential Information from these Products and Reports prior to any public disclosure of the Products. iii. If additional Confidential Information is developed or collected during the course of this Agreement (beyond that described in Attachment 1), the Recipient will follow the procedures for a request for designation of Confidential Information as specified in Title 20 California Code of Regulations (CCR) Section 2505. The Energy Commission's Executive Director will make the confidentiality determination. Following this determination, the Confidential Information may be added to Attachment 1 through a Letter of Agreement (see the "Amendments" section). The Energy Commission will not disclose the Confidential Information subject to an application for confidential designation except as provided in this subsection. iv. When submitting Products and Reports containing Confidential Information, the Recipient will mark each page of any document containing Confidential Information as "confidential", and present it in a sealed package to the Contracts, Grants, and Loans Office. HB -203- Item 6. - 77 EXHIBIT C The Commission Agreement Manager may require the Recipient to submit a non -confidential version of the Product or Report, if it is feasible to separate the Confidential Information from the non - confidential information. The Recipient is not required to submit such Products in a sealed package. B. Disclosure of Confidential Information Disclosure of Confidential Information by the Energy Commission may only be made pursuant to 20 CCR 2506, 2507, and 2508. All confidential data, records, Products, or Reports that are legally disclosed by the Recipient or any other entity become public records and are no longer subject to the above confidentiality designation. 20. Pre -Existing Intellectual Property, Independently Funded Intellectual Property, and Pre-existing Data A. Ownership The Energy Commission makes no ownership, license, or royalty claims to Pre-existing Intellectual Property, Independently Funded Intellectual Property, Pre-existing Data, Project -relevant Pre-existing Intellectual Property, Project -relevant Independently Funded Intellectual Property, or Project -relevant Pre-existing Data. B. Project -relevant Pre -Existing Intellectual Property, and Project -relevant Independently Funded Intellectual Property (collectively, "Project -relevant Intellectual Property") and Project -relevant Pre-existing Data i. Identification of Project -relevant Intellectual Property and Project - relevant Pre-existing Data a. All Project -relevant Pre-existing Intellectual Property of Key Personnel that is owned or controlled by Recipient is listed in Attachment 1 to this Exhibit. Within sixty (60) days of becoming aware that additional Project -relevant Pre-existing Intellectual Property of Key Personnel that is owned or controlled by Recipient has been or will be used in the performance of this Agreement, Recipient will notify the Energy Commission. Attachment 1 may be amended by a Letter of Agreement (see the "Amendments" section). b. All Project -relevant Independently Funded Intellectual Property of Key Personnel that is owned or controlled by Recipient and the source of funding for such Intellectual Property is described in Attachment 1 to this Exhibit. Within sixty (60) days of becoming aware that additional Project -relevant Independently Funded Intellectual Property of Key Personnel that is owned or controlled by Recipient has been or will be used in the performance of this Agreement, Recipient will notify the Energy Commission. Attachment 1 may be amended by a Letter of Agreement (see the "Amendments" section). Item 6. - 78 HB -204- EXHIBIT C c. During the term of this Agreement, Recipient will use reasonable efforts to notify the Energy Commission of any Project -relevant Intellectual Property of Key Personnel that is owned or controlled by Recipient that Recipient becomes actually aware of, with the qualification that Recipient is not in a position to guarantee that all potential Project -relevant Intellectual Property has been identified. d. If Recipient will be using Project -relevant Pre-existing Data of Key Personnel that is owned or controlled by Recipient in the performance of this Agreement that have restrictions on use, such data and use restrictions will also be identified in Attachment 1, which may be amended by a Letter of Agreement (see the "Amendments" section). Access to Project -Relevant Intellectual Property and Project -relevant Pre-existing Data The Energy Commission and California Public Utilities Commission may access Project -relevant Intellectual property identified in Attachment 1, and Project -relevant Pre-existing Data of Key Personnel that is owned or controlled by Recipient, whether or not it is identified in Attachment 1, but only to the extent that such access is limited to that reasonably necessary to: (a) demonstrate the validity of any premise, postulate, or conclusion referred to or expressed in any Product or Report; or (b) establish a baseline for repayment purposes. No express or implied licenses or other rights are provided to the Energy Commission and CPUC under any patents, patent applications, or other proprietary rights of the Recipient. Upon the Commission Agreement Manager's request, the Recipient will provide the Commission Agreement Manager and any reviewers designated by the Energy Commission or the CPUC with access to review the Recipient's Project -relevant Intellectual Property and Project -relevant Pre-existing Data. If such Project - relevant Intellectual Property or Project -relevant Pre-existing Data has been designated as Confidential Information as specified in Section 19, the Energy Commission will only disclose it under the circumstances specified in Title 20 CCR Sections 2506, 2507, and 2508. H B -205- Item 6. - 79 EXHIBIT C iii. Preservation of Project -Relevant Intellectual Property The Recipient will preserve any of its Project -relevant Intellectual Property at its own expense for at least five (5) years from the Agreement's end date or until the timeframe in Recipient's retention policy, whichever is longer. Notwithstanding the foregoing, Recipient has the sole right but not the obligation to prosecute or maintain patent protection for any of its Project -relevant Intellectual Property at any time. The Energy Commission and the CPUC will have reasonable access to the Project -relevant Intellectual Property and Project -relevant Pre- existing Data throughout the retention period for purposes specified in this Section 20 of the Agreement. C. All terms of this Section 20 above will be flowed down to Subcontractors, including the access rights to Project -relevant Intellectual Property and Project -relevant Pre-existing Data in part B.ii. 21. Intellectual Property A. Ownership Except as otherwise specified in this Agreement, the Recipient owns all Intellectual Property created, conceived or reduced to practice, discovered, made, developed, or altered by Recipient in the performance of this Agreement. B. Data Rights i. Pre-existing Data that will be included as a deliverable under this Agreement will be identified in Attachment 1. If the Commission provides its own pre-existing data, the Commission shall mark all such data, and Recipient and its subcontractors may only use it for purposes of the Scope of Work of this Agreement, unless such data is otherwise publicly available. ii. At the Commission's expense for actual cost of duplication and delivery, Recipient shall deliver additional Project Data that is specifically requested by the Commission. iii. The Commission and CPUC shall have the unrestricted right to use the Deliverable Data and delivered Project Data, subject to applicable pre-existing use and disclosure restrictions identified in Attachment 1 and other provisions in this Agreement, including but not limited to Confidentiality. iv. The Recipient shall have the unrestricted right to use Project Data, subject to applicable use and disclosure restrictions identified in Attachment 1 and other provisions in this Agreement, including but not limited to, Confidentiality. Item 6. - 80 H B -206- EXHIBIT C C. Copyrights All rights in Copyrightable Works other than Reports first created by the Recipient are the property of the Recipient. Unless pre-existing restrictions are listed under Attachment 1, the Recipient grants The State of California, including the Commission, a fully paid -up, royalty - free, non-exclusive, non -transferable, non-sublicensable, irrevocable license to reproduce, prepare derivative works, distribute copies, perform publicly, and display publicly Copyrightable Works specified for delivery to the Commission in the Scope of Work, to fulfill the State of California's governmental purposes, including the Commission's statutory objectives. ii. Notwithstanding C.i. directly above, when the purpose of the Scope of Work is specifically to create a Copyrightable Work for use by the Commission and that fact is indicated in the Scope of Work, then all rights in such Copyrightable Work will be the property of the Commission. The Commission grants to Recipient a fully paid -up, royalty -free, non-exclusive, non -transferable, non-sublicensable, irrevocable license to reproduce, prepare derivative works, distribute copies, perform publicly, and display publicly such Copyrightable Work for educational and research purposes and to allow other educational and nonprofit institutions to do so for educational and research purposes. iii. Upon written request and subsequent amendment, the Commission may request delivery of computer software that is not identified as a Product, but was first created by the Recipient in the performance of the Scope of Work. To the extent the Recipient is legally able to do so, Recipient shall grant the State of California, including the Commission, a fully paid -up, royalty -free, nonexclusive, non- transferable, non-sublicensable, irrevocable license to reproduce, prepare derivative works, distribute copies, perform publicly, and display publicly such software to fulfill the State of California's governmental purposes, including the Commission's statutory objectives, subject to restrictions, if any, identified in Attachment 1. iv. Copyrightable Works that may be patentable are also subject to the Patent Rights clause, which will take precedence in case of a conflict. HB -207- Item 6. - 81 EXHIBIT C V. The Commission may direct Recipient to issue a no -cost, non- exclusive, non-sublicensable, irrevocable, royalty -free, worldwide, perpetual license to Copyrightable Works described in subparagraphs i. and iii. above to Load -serving entities and/or the third parties working with a Load -serving entity, for the Load -serving entity's use in enhancing its service to EPIC ratepayers. This license is for non-commercial purposes, meaning that it does not allow Load -serving entities to sell, commercially offer or distribute Copyrightable Works to others or in the marketplace. For example, if the Recipient creates copyrightable software, the Commission can give a Load -serving entity the right to use the software as part of its operations of providing service to EPIC ratepayers, but the Load - serving entity cannot sell or distribute the software. D. Patent Rights Subject to the requirements of law, all rights to any Subject Inventions shall belong to the Recipient. The State of California, including the Commission, shall have a no -cost, non-exclusive, non- transferable, non-sublicensable, irrevocable, royalty -free, worldwide, paid -up license to practice, or have practiced, such Subject Invention for governmental purposes, including the Commission's statutory objectives. A confirmatory license will be executed by the Recipient to provide said license to any such Subject Invention, within ninety (90) days after filing of patent application. Notwithstanding the foregoing and except if the Commission exercises March -in Rights, Recipient has the sole right but not the obligation to prosecute or maintain patent protection for any Subject Invention at any time. ii. The Commission may direct Recipient to issue a no -cost, non- exclusive, non-sublicensable, irrevocable, royalty -free, worldwide, paid -up license to Subject Inventions to Load -serving entities and/or third parties working with a Load -serving entity, solely to practice Subject Inventions for non-commercial purposes, so as to enhance the Load -serving entities' service to EPIC ratepayers. This license is for non-commercial purposes, meaning that it does not allow Load -serving entities to sell, commercially offer or distribute patentable works to others or in the marketplace. For example, if the Recipient creates patentable software, the Commission can give a Load -serving entity the right to use the software as part of its operations of providing service to EPIC ratepayers, but the Load -serving entity cannot sell or distribute the software. Item 6. - 82 HB -208- EXHIBIT C iii. If any Subject Invention that is subject to the licenses above has been designated as Confidential Information as specified in Section 19, all license holders will only disclose the Subject Invention under the circumstances specified in Title 20 CCR Sections 2506, 2507, and 2508. All license holders will ensure that their officers, employees, and subcontractors who have access to the Subject Invention are informed of and abide by the disclosure limitations in Section 19. iv. Copyrightable Works that may be patentable are also subject to the Patent Rights clause, which will take precedence in case of a conflict. E. Energy Commission's Rights to Subject Inventions March -in Rights With respect to any Subject Invention in which Recipient has title and to the extent permissible under Federal laws and regulations, the Energy Commission shall have the right to require Recipient or Recipient's Licensee to grant a nonexclusive, partially exclusive, or exclusive license in any field of use to a responsible applicant, upon terms that are reasonable under the circumstances, if the Energy Commission determines that: a) the Recipient or Recipient's Licensee has not taken, or is not expected to take within a reasonable time, effective steps to achieve practical application of the Invention; or b) action is necessary to alleviate health or safety needs that are not reasonably satisfied by Recipient or Recipient's Licensee. If the Recipient or Recipient's Licensee refuses such request, the Commission may grant such a license itself. The parties may refer to the Federal Government's procedures for handling march -in rights. ii. Notice of Patent If any patent is issued for a Subject Invention, the Recipient will send the Commission Agreement Manager and Commission Agreement Officer written notice of the issuance within three (3) months of the issuance date. The notice must include the patent title, issuance number, and a general description of the Subject Invention. iii. Legal Notice The Recipient and all persons and/or entities obtaining an ownership interest in Subject Inventions must include the following statement within the specification of any United States patent application, and any subsequently issued patent for the invention: "This invention was made with State of California support under California Energy Commission grant number XXX-XX-XXX. The Energy Commission has certain rights to this invention." HB -209- Item 6. - 83 EXHIBIT C F. Access to and Preservation of Subject Inventions and Copyrightable Works Access Upon the Commission Agreement Manager's request, the Recipient will provide the Commission Agreement Manager and any individuals designated by the Commission or the CPUC with access to the Recipient's Subject Inventions and to Copyrightable Works which are subject to Sections 21.C.i and 21.C.iii., in order to exercise the licenses described above, and to determine any royalty payments due under the Agreement. Preservation The Recipient will preserve Subject Inventions and Copyrightable Works which are subject to Sections 21.C.i and 21.C.iii, in order to exercise the licenses described above, at its own expense for at least ten (10) years from the Agreement's end date or until the timeframe in Recipient's retention policy, whichever is longer. Notwithstanding the foregoing, Recipient is not obliged under this Agreement to obtain or maintain any intellectual property protection for Subject Inventions. Recipient has the sole right but not the obligation to file a patent application for a Subject Invention, but Recipient will file and prosecute a patent application for any Subject Invention which a Licensee has a license under Section 21.D.ii., upon written request by such Licensee and at Licensee's expense. G. All terms of this Section 21 above will be flowed down to Subcontractors. 22. Royalty Payments to the Energy Commission A. In consideration of the Commission providing funding to the UC, UC agrees to pay the Commission a portion of either Net Revenues or Net Royalties under the terms and conditions hereinafter set forth. If federal funds are used in the conception or reduction to practice of a Subject Invention, such Net Revenues or Net Royalties shall be used by the State of California in a manner consistent with Title 35 United States Code (USC), Section 202, subdivision (c)(7) to the extent this USC Section applies). Net Royalties. The UC's obligation to make payments to the Commission shall commence from the date that the Net Royalties calculation is positive and extend until ten (10) years from the Agreement's end date. Payments are payable in annual installments and are due the first day of March for Net Royalties calculation made for the UC's prior fiscal year. UC agrees to pay to Commission an amount equivalent to 10% of the total cumulative Net Royalties, less payments made by UC to Commission in previous years when Net Royalties were positive. Payments shall be made by check and made payable to the California Energy Commission, EPIC Fund. Item 6. - 84 HB -210- EXHIBIT C ii. Net Revenues. If the UC is the licensee, the UC's obligation to make payments to the Commission shall commence upon the first sale of the Licensed Product. Payments are payable in annual installments and are due the first day of March for the prior fiscal year of the UC and extend until ten (10) years from the Agreement's end date. UC agrees to pay an amount equivalent to 1.5% of the Net Revenues by check made payable to the California Energy Commission, EPIC Fund. B. If a Licensed Product was developed in part with Match Funds during the Agreement term, the Net Royalty payments will be reduced in accordance with the percentage of such development activities that were funded with Match Funds. For example, if 20% of the development activities were funded with Match Funds during the Agreement and total cumulative Net Royalties equaled $100,000 in one year, the Recipient would owe the Energy Commission $8,000 for the year ( 10% of $100,000 = $10,000; 80% of $10,000 = $8,000 (the 80% coming from 100% - 20% in match funds)). If the Energy Commission is providing funds to the Recipient under this Agreement as a project match partner and Energy Commission funds are used in part to develop a Licensed Product, the Net Royalty payments will be reduced in accordance with the percentage of such development activities that were funded with non -Energy Commission funds during the Agreement term. For example, if 80% of the development activities were funded with Recipient and/or third party funds during the Agreement and Net Royalties totaled $100,000 in one year, the Recipient would owe the Energy Commission $2,000 for the year (10% of $100,000 = $10,000; 20% of $10,000 = $2,000 (the 20% coming from 100% - 80% in match funds)). C. Unless the Recipient makes an early buyout, total Net Royalty or Net Revenue payments will be limited to three (3) times the amount of funds paid by the Energy Commission under the Agreement. The Recipient may make an early buyout payment to the Energy Commission without a pre- payment penalty, as an alternative to making annual royalty payments for ten (10) years following the Agreement's end date. The payment must be in a lump sum amount equal to one and a half (1.5) times the amount of funds paid by the Energy Commission under the Agreement and made within five (5) years of the Agreement's end date. The payment amount due under the early buyout option will not be reduced by the percentage of Match Funds as described above. HB -211- Item 6. - 85 EXHIBIT C D. UC agrees not to make any sale, license, lease, gift or other transfer of any Project Data Subject Invention, Copyrightable Work or Licensed Product with the intent of, or for the purpose of, depriving Commission of Net Royalties or Net Revenues hereunder. Generally, this means that the UC will not make any sale, license, lease or other transfer of Project Data, Subject Invention, Copyrightable Work or Licensed Product for consideration other than fair market value except for research, educational, or other mutually agreed to purposes intended to serve the public benefit. E. UC hall maintain separate accounts within their financial and other records for purposes of tracking royalties and revenues due to the Commission under this Agreement. F. Audits on Payments to Commission. Payments to the Commission are subject to the Audit clause. G. Defaults. In the event of default hereunder, the Commission shall be free to exercise all rights and remedies available to it herein, and under law and at equity. UC's failure to pay when due, any amount due and payable under the terms of this contract constitutes a default under this Agreement. 23. General Provisions A. Governing Law It is hereby understood and agreed that this Agreement shall be governed by the laws of the State of California as to interpretation and performance. B. Independent Capacity The Recipient, and the agents and employees of the Recipient, in the performance of this Agreement, shall act in an independent capacity and not as officers or employees or agents of the State of California. C. Assignment Without the written consent of the Energy Commission in the form of a formal written amendment, this Agreement is not assignable or transferable by Recipient either in whole or in part. D. Timeliness Time is of the essence in this Agreement. E. Unenforceable Provision In the event that any provision of this Agreement is unenforceable or held to be unenforceable, then the parties agree that all other provisions of this Agreement have force and effect and shall not be affected thereby. F. Waiver No waiver of any breach of this Agreement shall be held to be a waiver of any other or subsequent breach. All remedies afforded in this Agreement shall be taken and construed as cumulative, that is, in addition to every other remedy provided therein or by law. Item 6. - 86 HB -212- EXHIBIT C G. Assurances The Energy Commission reserves the right to seek further written assurances from the Recipient and its team that the work of the project under this Agreement will be performed consistent with the terms of the Agreement. H. Notification of Important Occurrences Recipient shall promptly notify the Energy Commission of the occurrence of any of the following: i. A change of address. ii. The existence of any litigation or other legal proceeding affecting the project. iii. The occurrence of any casualty or other loss to project personnel, equipment or third parties. iv. Receipt of notice of any claim or potential claim against Recipient for patent, copyright, trademark, service mark and/or trade secret infringement that could affect the Energy Commission's rights. Access to Sites and Records The Energy Commission staff or its representatives shall have reasonable access to all project sites and to all records related to this Agreement. J. Survival of Terms It is understood and agreed that certain provisions shall survive the completion or termination date of this Agreement for any reason. The provisions include, but are not limited to: i. "Payments of Funds" ii. "Equipment" iii. "Notification of Important Occurrences" iv. "Termination" V. "Record keeping, Cost Accounting, and Auditing" vi. "Indemnification" vii. "Pre -Existing Intellectual Property, Independently Intellectual Property, and Pre-existing Data" viii. "Intellectual Property" ix. "Royalty Payments to the Energy Commission" X. "Access to Sites and Records" 24. Certifications and Compliance A. Federal, State & Local Laws Funded Recipient shall comply with all applicable federal, state and local laws, rules and regulations. HB -213- Item 6. - 87 EXHIBIT C B. Nondiscrimination Statement of Compliance During the performance of this Agreement, Recipient and its subcontractors shall not unlawfully discriminate, harass or allow harassment, against any employee or applicant for employment because of sex, sexual orientation, race, color, ancestry, religious creed, national origin, physical disability (including HIV and AIDS), mental disability, medical condition (cancer), age (40), marital status, and denial of family care leave. Recipient and its subcontractors shall insure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment. Recipient and its subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Government Code Sections 12990 et seq.) and the applicable regulations promulgated thereunder (California Code of Regulations, Title 2, Section 7285 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code Section 12990 (a-f), set forth in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations are incorporated into this Agreement by reference and made a part of it as if set forth in full. Recipient and its subcontractors shall give written notice of their obligations under this section to labor organizations with which they have a collective bargaining or other Agreement. The Recipient shall include the nondiscrimination and compliance provisions of this section in all subcontracts to perform work under this Agreement. C. Drug Free Workplace Certification By signing this Agreement, the Recipient hereby certifies under penalty of perjury under the laws of the State of California that the Recipient will comply with the requirements of the Drug -Free Workplace Act of 1990 (Government Code Section 8350 et seq.) and will provide a drug -free workplace by taking the following actions: Publish a statement notifying employees that unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited and specifying actions to be taken against employees for violations as required by Government Code Section 8355(a). ii. Establish a Drug -Free Awareness Program as required by Government Code Section 8355(b) to inform employees about all of the following: a. The dangers of drug abuse in the workplace; b. The person's or organization's policy of maintaining a drug -free workplace; c. Any available counseling, rehabilitation, and employee assistance programs; and Item 6. - 88 » B -214- EXHIBIT C d. Penalties that may be imposed upon employees for drug abuse violations. iii. Provide, as required by Government Code Section 8355(c), that every employee who works on the proposed project: a. Will receive a copy of the company's drug -free policy statement; b. Will agree to abide by the terms of the company's statement as a condition of employment on the project. Failure to comply with these requirements may result in suspension of payments under the Agreement or termination of the Agreement or both, and the Recipient may be ineligible for any future state awards if the Energy Commission determines that any of the following has occurred: 1) the Recipient has made false certification, or 2) violates the certification by failing to carry out the requirements as noted above. D. National Labor Relations Board Certification (Not applicable to public entities) Recipient, by signing this Agreement, does swear under penalty of perjury that no more than one final unappealable finding of contempt of court by a Federal Court has been issued against the Recipient within the immediately preceding two year period because of the Recipient's failure to comply with an order of a Federal Court which orders the Recipient to comply with an order of the National Labor Relations Board. E. Child Support Compliance Act (Applicable to California Employers) For any agreement in excess of $100,000, the Recipient acknowledges that: It recognizes the importance of child and family support obligations and shall fully comply with all applicable state and federal laws relating to child and family support enforcement, including, but not limited to, disclosure of information and compliance with earnings assignment orders, as provided in Chapter 8 (commencing with section 5200) of Part 5 of Division 9 of the Family Code; and ii. To the best of its knowledge is fully complying with the earnings assignment orders of all employees and is providing the names of all new employees to the New Hire Registry maintained by the California Employment Development Department. F. Air or Water Pollution Violation Under the state laws, the Recipient shall not be: In violation of any order or resolution not subject to review promulgated by the State Air Resources Board or an air pollution control district; I IB _2 15_ Item 6. - 89 EXHIBIT C ii. Subject to cease and desist order not subject to review issued pursuant to Section 13301 of the Water Code for violation of waste discharge requirements or discharge prohibitions; or iii. Finally determined to be in violation of provisions of federal law relating to air or water pollution. G. Americans with Disabilities Act By signing this Agreement, Recipient assures the State that it complies with the Americans with Disabilities Act (ADA) of 1990 (42 U.S.C. 12101, et seq.), which prohibits discrimination on the basis of disability, as well as applicable regulations and guidelines issued pursuant to the ADA. H. Union Activity By signing this Agreement, the Recipient hereby certifies that Recipient will not use grant funds for any expenses to assist, promote, or deter union organizing. Any Recipient that makes expenditures to assist, promote, or deter union organizing shall maintain records sufficient to show that state funds have not been used for those expenditures (Government Code Section 16645.2). Payment Costs for this Agreement shall be computed in accordance with State Administrative Manual Section 8752 and 8752.1. 25. Definitions A. Agreement Period is the length of this Agreement between the Energy Commission and the Recipient. The Recipient's Project may coincide with or extend outside the Agreement Period. B. Confidential Information any data or information that is proprietary to the Disclosing Party, allowed to be kept confidential under the California Public Records Act (Government Code §6250 et seq.) or other applicable law, and not publicly known at the time of disclosure to the receiving party. C. Copyrightable Work means any copyrighted work as defined under U.S. copyright law to which the Recipient, a Subcontractor, or a Match Fund Partner has acquired title that is first created in the performance of the Scope of Work under this Agreement and is not a scholarly work. D. Data means information, regardless of the form or medium including, but not limited to drawings, lists, findings, computations, notes, diagrams, data files, statistical records and other research data. E. Pre-existing Data means Data possessed or owned by the Recipient or by a third party (including Subcontractors) that exists prior to the Agreement start date or developed during the Agreement without Commission or Match Funds. Item 6. - 90 HB -21 6- EXHIBIT C F. Project -relevant Pre-existing Data means Pre-existing Data used by Recipient or Subcontractors in the performance of the Scope of Work conducted under this Agreement G. Project Data means Data that is first produced in the performance of this Agreement by Recipient, a Subcontractor or a Match Funds partner. Project Data does not include a researcher's laboratory notebook, but may include the Data contained therein. H. Deliverable Data means Project Data that is identified in the Scope of Work and required to be delivered to the Commission. Equipment is defined as having a useful life of at least one year, having an acquisition unit cost of at least $5,000, and purchased with Energy Commission funds. Equipment means any products, objects, machinery, apparatus, implements or tools purchased, used or constructed within the Project, including those products, objects, machinery, apparatus, implements or tools from which over thirty percent (30%) of the equipment is composed of Materials purchased for the Project. For purposes of determining depreciated value of equipment used in the Agreement, the Project shall terminate at the end of the normal useful life of the equipment purchased, funded and/or developed with Energy Commission funds. The Energy Commission may determine the normal useful life of such equipment. J. Key Personnel are employees of the Recipient who are both listed in the Agreement and critical to the outcome of the project. For example, they may have expertise in the particular field or have experience that is not available from another source. Replacing these individuals may affect the outcome of the project. K. Independently Funded Intellectual Property means Intellectual Property created, conceived, discovered, made, developed, altered, or reduced to practice by the Recipient or a third party during or after the Agreement term without Energy Commission or Match Funds, and any associated proprietary rights to these items that are obtained without Energy Commission or Match Funds, such as patent and copyright. L. Intellectual Property means inventions, technologies, designs, drawings, software, formulas, compositions, processes, techniques, works of authorship, trademarks, service marks, logos, and any associated proprietary rights to these items, such as patent and copyright, including and any upgrades or revisions to these items. M. Licensed Product means any product commercialized by a Licensee that embodies or utilizes Project Data, a Subject Invention, or Copyrightable Work. H B -217- Item 6. - 91 EXHIBIT C N. Licensee means the organization (or its affiliates, joint venture or sublicensee) that is granted commercial rights to Project Data, a Subject Invention or Copyrightable Work to develop any of these into a commercial product that is made available to the public in the marketplace or otherwise sold. O. Load -serving entity means a company or other organization that provides electricity to EPIC ratepayers. P. Match Funds means cash or in -kind (non -cash) contributions shown in the approved budget, Exhibit B, and provided by Recipient, Subcontractors, or other parties that will be used in performance of this Agreement. Q. Match Fund Partner means an entity providing Match Funds that does not receive any Commission funds. R. Materials means the substances used in constructing a finished object, commodity, device, article or product. S. Net Revenues means the total of the gross invoice prices of Licensed Product sold, less the sum of the following actual and customary deductions where applicable: cash; quantity discounts; sales, use, tariff, import/export duties or other excise taxes imposed upon particular sales; transportation charges; and allowance or credits to customers because of rejections or returns. T. Net Royalties means gross licensing income, including royalties and fees, received by UC from a Licensee as consideration for commercially licensing any Subject Invention, Copyrightable Work, or Project Data, less the following: Legal or other direct expenses (that are not otherwise reimbursed under an option or license agreement from a third party) of patenting, protecting and preserving patent, copyright and related property rights, maintaining patents and other such costs, taxes, or reimbursements as may be necessary or required by law, except patent infringement expenses; ii. Inventor or author shares in accordance with UC's, patent or copyright policy; and iii. Direct expenses include operating expenses of UC which are customarily reimbursed by royalty payments. Net Royalties do not include any payments to joint holders nor research funding accepted by Recipient or a Subcontractor in association with an option or licensing agreement. Net Royalties shall be aggregated cumulatively, over time for each disclosed Subject Invention, Copyrightable Work, or Project Data. U. Ownership means exclusive possession and control of all rights to property, including the right to use and transfer property. Item 6. - 92 H B -218- EXHIBIT C V. Subcontractor is the same as a Subrecipient and means an entity that is performing research and has received Agreement funds via a subaward arrangement appropriate for that entity from the prime UC location awarded this grant Agreement. A Subcontractor may include not -for -profit and for - profit organizations, Federal laboratories, or any part of the University of California, such as a campus or the Lawrence Berkeley National Laboratory. This definition does not include vendors providing goods and services. W. Key Subcontractor is a Subcontractor that is critical to the outcome of the project. For example, the Subcontractor may have expertise in the particular field or have experience that is not available from another source. Replacing these entities may affect the outcome of the project. X. Pre-existing Intellectual Property means Intellectual Property that the Recipient or a third party owned or possessed prior to the effective date of this Agreement and that have not been developed, altered, or reduced to practice with Energy Commission or Match Funds, and any associated proprietary rights to these items that are obtained without Energy Commission or Match Funds, such as patent and copyright. Y. Products means all tangible research products first made by Recipient, Subcontractors, or Match Fund Partners in the performance of this Agreement and specified for delivery to the Commission in the Scope of Work, but not a Subject Invention nor a Copyrightable Work. Z. Project refers to the entire effort undertaken and planned by the Recipient under this Agreement and consisting of the work co -funded in whole or in part by the Energy Commission. AA. Project -relevant Pre-existing Intellectual Property means Pre-existing Intellectual Property used by Recipient, Subcontractors, or Match Fund Partners in the performance of the Scope of Work conducted under this Agreement. BB. Project -relevant Independently Funded Intellectual Property means Independently Funded Intellectual Property used by Recipient, Subcontractors, or Match Fund Partners in the performance of the Scope of Work conducted under this Agreement. CC. Report means all required reports specified for delivery to the Commission in the Scope of Work. DD. Sale means the act of selling, leasing or otherwise transferring, providing, or furnishing for use for any consideration. Sell means to make or cause to be made a Sale. EE. Sold means to have made or caused to be made a Sale. FF. Sales Price means the price at which Licensed Product is sold, excluding sales tax. HB -219- Item 6. - 93 EXHIBIT C GG. Subject Invention means any patentable invention or discovery that is either: Conceived and first actually reduced to practice (actually reduced to practice or constructively reduced to practice by the filing of a patent application) in the performance of the Scope of Work; ii. Conceived in the performance of the Scope of Work and first reduced to practice in the performance of the Scope of Work conducted under this Agreement or within forty-two (42) months after the completion of the Scope of Work; iii. Conceived prior to the effective date of this Agreement or conceived without Energy Commission funds and reduced to practice in the performance of the Scope of Work, provided that such conception is not encumbered by any obligations owed to a third party other than the U.S. Government. HH. Technology refers to the general subject area where the product or innovation will be used. For example, solar thermal electric generation is a Technology area; direct steam generation is an innovation in this Technology area. II. Trade Secret is any formula, plan, pattern, process, tool, mechanism, compound, procedure, production data, or compilation of information which is not patented and which is generally known only to certain individuals with a commercial concern and are using it to fabricate, produce or compound an article of trade or a service having commercial value and which gives its user an opportunity to obtain a business advantage over competitors who do not know or use it. JJ. UC is used to refer to the one legal entity of The Regents of the University of California, or any subdivision or campus thereof. KK. Vendor. A dealer, distributor, merchant or other seller providing goods or services that are required for the performance of the Scope of Work. Vendors are not considered Subcontractors and are subject to the normal terms and conditions of the University's procurement process. LL. Key Vendor is a Vendor that is critical to the outcome of the project. For example, the Vendor may have expertise in the particular field or have experience that is not available from another source. Replacing these entities may affect the outcome of the project. Item 6. - 94 HB -220- EXHIBIT C EXHIBIT C - ATTACHMENT 1 Confidential Products and Project -Relevant Pre -Existing and Independently Funded Intellectual Property 1. Instructions Identification of Confidential Information Prior to the effective date of the Agreement, the Recipient must identify in Section 2 of this attachment any products (or information contained within products) that it considers to be confidential. If the Energy Commission agrees that the information is confidential, it will not disclose it except as provided in Section 19 (Confidentiality) of these terms and conditions. During the Agreement, if the Recipient develops additional information not originally anticipated as confidential, it must follow the procedures for a request for designation of confidential information specified in Title 20 California Code of Regulations (CCR) Section 2505. The Energy Commission's Executive Director will make the confidentiality determination. Following this determination, the confidential information may be added to this attachment through a Letter of Agreement (see Section 6 (Amendments) and Attachment 2 (Sample Letter of Agreement)). The Energy Commission will not disclose information subject to an application for confidential designation except as provided in Section 19. When submitting products containing confidential information, the Recipient must mark each page of any document containing confidential information as "confidential" and present it in a sealed package to the Contracts, Grants, and Loans Office. The Commission Agreement Manager may require the Recipient to submit a non - confidential version of the product, if it is feasible to separate the confidential information from the non -confidential information. Identification of Project -Relevant Independently Funded and Pre -Existing Intellectual Property The Recipient must identify all project -relevant pre-existing intellectual property and project -relevant independently funded intellectual property in Section 3 of this attachment prior to the effective date of the Agreement, or within sixty (60) days of becoming aware that the property has been or will be used to support a premise, postulate, or conclusion referred to or expressed in any product under the Agreement. This attachment may be amended by a Letter of Agreement (see Section 6 (Amendments) and Attachment 2 (Sample Letter of Agreement)). o "Project -relevant pre-existing intellectual property" and "project -relevant independently funded intellectual property" mean pre-existing and independently funded intellectual property used to support a premise, postulate, or conclusion referred to or expressed in any product under the Agreement. o "Pre-existing intellectual property" means: (a) inventions, technologies, designs, drawings, data, software, formulas, compositions, processes, techniques, works of authorship, trademarks, service marks, and logos that the Recipient or a third party owned or possessed prior to the effective date of this Agreement and that have not been developed, altered, or reduced to practice with Energy Commission or match funds; and (b) associated proprietary rights to these items that are obtained without Energy Commission or match funds, such as patent and HB _z2)1 - Item 6. - 95 EXHIBIT C copyright o "Independently funded intellectual property" means: (a) inventions, technologies, designs, drawings, data, software, formulas, compositions, processes, techniques, works of authorship, trademarks, service marks, and logos that are created, conceived, discovered, made, developed, altered, or reduced to practice by the Recipient or a third party during or after the Agreement term without Energy Commission or match funds; and (b) associated proprietary rights to these items that are obtained without Energy Commission or match funds, such as patent and copyright. "Works of authorship" does not include written products created for Agreement reporting and management purposes, such as reports, summaries, lists, letters, agendas, schedules, and invoices. The Commission owns such products regardless of their funding source. • Failure to identify project -relevant pre-existing or independently funded intellectual property in this attachment may result in the property's designation as "intellectual property" that is subject to licenses and royalties, as described in Sections 21 (Intellectual Property) and 22 (Royalty Payments to the Commission). Item 6. - 96 H B -222- EXHIBIT C 2. Confidential Products and/or Confidential Information Contained within Products The Energy Commission designates the following products (or information contained within products) as confidential, in accordance with Title 20 California Code of Regulations Section 2505(c)(2)(B). NONE Product name NA Not Applicable No Confidential Information included Task/subtask number Information to be kept ❑ Entire product confidential ❑ Selected information within product (describe below; be as specific as possible): Legal basis for ❑ California Public Records Act, located in California confidentiality designation Government Code Sections 6250 et seq. (identify the relevant section(s) and subsections(s) below): ❑ Other law (identify below, including the relevant section(s) and subsections(s)): Term of confidentiality MM-DD-YY to MM-DD-YY Trade secrets only Answer the following questions if the product/information described above is considered a trade secret (i.e., confidential business information that provides the business with a competitive advantage): 1. What is the nature of the competitive advantage provided by the product/information? 2. How would the competitive advantage be lost by disclosure? (generally describe the value of the product/information and the ease or difficulty with which it may be legitimately acquired or duplicated by others). HB -223- Item 6. - 97 EXHIBIT C 3. Project -Relevant Pre -Existing Intellectual Property and Project -Relevant Independently Funded Intellectual Property The Recipient has identified the following items as "project -relevant pre-existing intellectual property" and/or "project -relevant independently funded intellectual property," as defined in Sections 20 (Pre -Existing and Independently Funded Intellectual Property) and 25 (Definitions) of these terms and conditions. The Commission makes no ownership, license, or royalty claims to this property, and may only access it for the purposes described in Section 20. NONE Name/Title of Intellectual Property NA (Not applicable) Type of Intellectual Property ❑ Project -relevant pre-existing intellectual property ❑ Project -relevant independently funded intellectual propert ❑ Invention ❑ Process ❑ Technology ❑ Technique ❑ Design ❑ Work of Authorship ❑ Drawing ❑ Trademark/ Service mark ❑ Data ❑ Logo ❑ Software ❑ Formula Registered or Pending ❑ Copyright ❑ Patent ❑Trademark/ Service mark Intellectual Property (i.e., Name of owner: copyrights, patents, or Number and date: trademarks that are registered or pending with the U.S. For pending applications Copyright Office or the U.S. Name of applicant: Patent and Trademark Office) Application number and date: Unregistered Intellectual ❑ Copyright ❑ Trademark/ Service mark Property ❑ Trade Secret Name of owner: Description of how the property will be or has been used to support a premise, postulate, or conclusion referred to or expressed in any product under the Agreement Item 6. - 98 KB -224- EXHIBIT C RECIPIENT The Regents of the University of California, Irvine campus AGREEMENT NUMBER EPC-15-077 ADDRESS AGREEMENTTERM 6/15/2016 to 7/31 /2018 University of California, Irvine The effective date of this Agreement is either the start date or the approval Office of Research Administration date by the California Energy Commission, whichever is later. The California Energy Commission shall be the last party to sign. No work is 5171 California, Suite 150 authorized, nor shall any work begin, until on or after the effective date. PROJECT DESCRIPTION The parties agree to comply with the terms and conditions of the following Exhibits which are by this reference made a part of the agreement. Exhibit A — Scope of Work Page(s): 21 Exhibit A — Attachments Page(s): 2 Exhibit B — Budget Page(s): 27 Exhibit B — Attachments Page(s): 0 Exhibit C — General Terms and Conditions Page(s): 33 Exhibit C — Attachments Page(s): 4 Exhibit D - Contacts Page(s): 1 $ 195009000 $ 810,998 $ 2,310,998 The undersigned parties have read the attachments to this agreement and will comply with the standards and requirements contained therein. CALIFORNIA ENERGY COMMISSION RECIPIENT AUTHORIZED SIGNATURE DATE AUTHORIZED SIGNATURE DATE NAME Rachel L. Grant Kiley NAME TITLE Contracts, Grants and Loans Office Manager TITLE CALIFORNIA ENERGY COMMISSION ADDRESS 1516 9th Street, MS 1, Sacramento, CA 95814 1-1B _z-2,_ Item 6. - 99 EXHIBIT C California Energy Commission Recipient Commission Agreement Manager: Project Manager: Rachel Salazar Jacob Brouwer California Energy Commission University of California, Irvine 1516 Ninth Street, MS-51 Irvine, CA 92697-3550 Sacramento, CA 95814 Phone: (949) 824-7302 ext 11-221 Phone: (916) 445-5316 Fax: (949) 824-7423 Fax: (916) 327-1353 e-mail: jbrouwer@uci.edu e-mail: Rachel.Salazar@energy.ca.gov Commission Agreement Officer: Administrator: Brad Worster Natalie Nodianos — Principal C&G Officer California Energy Commission University of California, Irvine 1516 Ninth Street, MS-18 Office of Research Administration Sacramento, CA 95814 5171 California, Suite 150 Phone: (916) 654-4299 Irvine, CA 92697-7600 Fax: (916) 654-4423 Phone: (949) 824-8109 e-mail: Brad.Worster@energy.ca.gov Fax: (949) 824-2094 e-mail: natalie.nodianos@uci.edu Accounting Officer: Accounting Officer: Eyob Zeleke Rebecca Tangen California Energy Commission UCI Contract & Grant Accounting 1516 Ninth Street, MS-2 1400 Biological Sciences III Sacramento, CA 95814 Irvine, CA 92697-1050 Phone: (916) 654-4871 Phone: (949) 824-6828 Fax: (916) 653-1435 Fax: (949) 824-3895 e-mail: Eyob.Zeleke@energy.ca.gov e-mail: rtangen@uci.edu Legal Notices: Legal Notices: Tatyana Yakshina Natalie Nodianos — Principal C&G Officer Grants Manager University of California, Irvine 1516 9th Street, MS-1 Office of Research Administration Sacramento, CA 95814 5171 California, Suite 150 Phone: (916) 654-4204 Irvine, CA 92697-7600 Fax: (916) 654-4076 Phone: (949) 824-8109 e-mail: Tatyana.Yakshina(a-).energy.ca.gov Fax: (949) 824-2094 e-mail: natalie.nodianos@uci.edu Item 6. - 100 HB -226- EXHIBIT C Subaward No.: Reporting Period: Principal Investigator: UNIVERSITY OF CALIFORNIA, IRVINE OFFICE OF RESEARCH ADMINISTRATION INVENTION STATEMENT EXHIBIT D Invention was was not conceived or first actually reduced to practice in the performance of work during the subaward reporting period. EQUIPMENT REPORT Equipment was was not purchased during the subaward reporting period. If equipment was purchased during the subaward period, please provide the following information. Description of the equipment item Manufacturer, model number, and serial number Cost charged to the subaward Acquisition date Signature of Principal Investigator Date Signature of Authorizing Official Date HB -227- Item 6. - 101 EXHIBIT C EXHIBIT E SUBCONTRACTOR'S RELEASE Pursuant to the terms of Subcontract Number under prime Grant/Contract Number for the period through and in consideration of the sum of which has been paid under Subcontract to (hereinafter called the Subcontractor) or to its assignees, if any, the Subcontractor, upon payment of the said sum by THE REGENTS OF THE UNIVERSITY OF CALIFORNIA, University of California, Irvine (hereinafter called University) does remise, release, and discharge the University, its officers, agents, and employees, of and from all liabilities, obligations, claims and demands whatsoever under or arising from the said subcontract. IN WITNESS WHEREOF, this release has been executed this 20 Subcontractor By Title Certificate (To be completed by an officer other than the one certifying above.) certify that I am (Name of official) (Official Title) of the corporation named as subcontractor in the foregoing release, that (Official certifying above) who signed said release on behalf of the Subcontractor was then (Official Title) of said corporation; that said release was duly signed form and on behalf of said corporation by authority of its governing body is within the scope of its corporate powers. (Name and Title of Official Certifying this form) day of Item 6. - 102 «B -228- EXHIBIT C Date: I Total Award Amourj"+- Voucher Number: I Subcontractor: Remittance Address: Subcontract No. Contractor Contractor's Fund Number Period of Claim Remittance Information: Federal Tax I.D. Accounts Receivable Contact Telephone # The Regents of the University of California EXHIBIT F SAMPLE INVOICE Major Cost Elements Current Period Cumulative to Date Salaries and Wages Supplies and Expenses Equipment/Facilities Travel Employee Benefits Other Total Cost Previously Claimed Current Claim Certification: By signing this report, I certify to the best of my knowledge and belief that the report is true, complete, and accurate, and that all expenditures, disbursements and cash receipts are for the puposes and objectives set forth in the terms and condition of the award. I am aware that any false, ficticious, or fraudulent information, or the omission of any material fact, may subject me to criminal, civil or administrative penalties for fraud, false statements, false claims or otherwise. (U.S. Code Title 18, Section 1001 and Title 31, Sections 3729-3730 and 3801-3812). Subrecipient Official Authorized Date UCI Principal Investigator Signature of Approval Date HB _229_ Item 6. - 103 ATTACHMENT #3 ��r}}� Oaz,- 1 Renewal Partnership PO Box 3476 1 Huntington Beach, CA 192605 1 714-596-7063 1 www.oak-view.org February 1, 2016 Professor Tack Brouwer, Associate Director Advanced Power and Energy Program University of California Irvine, CA 92697-3550 RE: Letter vfsupport for University of California's response to California Energy Commission GFO- 15-312 entitled "Huntington Beach Advanced Euerg)) Community Blueprint: A scalable, Replicable, and Cost -Effective Model for the Future " Dear Professor Brouwer: Oak View Renewal Partnership (OVRP) supports the City of Huntington Beach and the Advanced Power Energy Program at the University of California, Irvine on the UCI-APEP proposed effort entitled "Huntington Beach Advanced Energy Community Blueprint: A Scalable, Replicable, and Cost -Effective Model for the Future." As a response to the California Energy Commission's Electric Program Investment Charge (CEC EPIC) solicitation GFO-15-312, we support the submission of this proposal. OVRP's mission seeks to empower the residents of the Oak View community in Huntington Beach while serving as a model for community development. OVRP prides itself on being a strong, grassroots non- profit organization whose place -based focus and 20-year history has positioned us to help identify and address the roots of poverty within a one community. We believe that this initiative will provide transformative opportunities to the residents of Oak View and we look forward partnering with the City on this project. Sincerely, 0 � IiCGcJ U �cjwa ; Yesenia V. Ochoa Executive Director Oak View Renewal Partnership Item 6. - 104 HB -2130- STATE CAPITOL P.O. BOX 942849 SACRAMENTO, CA 94249-0074 (916)319-2074 FAX (916) 319-2174 February 5, 2016 AT�zZt�arnt�zT, rgzstafurr A MATTHEW HARPER ASSEMBL YMEMBER. SEVENTY-FOURTH DISTRICT Mr. Robert B. Weisenmiller California Energy Commission 1516 Ninth Street, MS-29 Sacramento, CA 95814-5512 Dear Mr. Weisenmiller, DISTRICT OFFICE 1503 SOUTH COAST DRIVE, SUITE 205 COSTA MESA, CA 92626 (714) 668-2100 FAX (714) 668-2104 I am writing to you today to express my support for the City of Huntington Beach's grant application for Phase I of the Electric Program Investment Charge (EPIC) Program. The City of Huntington Beach has partnered with the University of California (UC) Irvine's Advanced Power and Energy Program (APEP) to convert the disadvantaged Oak View community of Huntington Beach into an Advanced Energy Community (AEC). Revitalization of environmental justice areas is a high priority for the City, UC Irvine, and the California Energy Commission (CEC). Through collaborative approaches with local governments, developers, researchers, and utilities, Phase I of the EPIC Program emphasizes the development of innovative planning, permitting, and financing approaches to building replicable AECs. The proposed project will design and evaluate integrated sets of advanced energy technologies and solutions at a pilot/community scale to validate its benefits to California Investor -Owned -Utilities, ratepayers, and California Independent System Operator in various case studies and designs. I strongly support the City of Huntington Beach's joint project with UC Irvine to accelerate the deployment of Advanced Energy Communities and ask you to consider their application. Should you have any questions regarding this project, please do not hesitate to contact my office at (714) 668-2100. Sincerely, Matthew Harper Assemblymember, 74th District 1113 _2; I - Item 6. - 105 MICELLE STEEL SUPERVISOR, SECOND DISTRICT ORANGE COUNTY HALL OF ADMINISTRATION 333 W. SANTA ANA BLVD., P.O. BOX 687, SANTA ANA, CALIFORNIA 92702-0687 PHONE (714) 834-3220 FAX (714) 834-6109 michelle.steelCmocgov.com February 15, 2016 Robert B. Weisenmiller Chair, California Energy Commission 1516 Ninth Street, MS-29 Sacramento, CA 95814-5512 Dear Chairman Weisenmiller, I am writing to express illy strong support for the City of Huntington Beach's grant application for Phase I of the Electric Program Investment Charge (EPIC) Program. The City of Huntington Beach has partnered with University of California (UC), Irvine's Advanced Power and Energy Program (APEP) to convert the disadvantaged Oak View Corn III Lill ity of Huntington Beach into an Advanced Energy Community (AEC). Revitalization of Environmental Justice areas is a high priority for the City, UC Irvine, and the California Energy Commission (CEC). Through collaborative approaches with local governments, developers, researchers, and utilities, Phase I of the EPIC Program emphasizes the development of innovative planning, permitting, and financing approaches to building replicable AECs. The proposed project ",will design and evaluate integrated sets of advanced energy technologies and solutions at a pilot/community scale to validate its benefits to California Investor -Owned -Utilities, ratepayers, and California hidependent System Operator in various case studies and desi-is. The proposed master- community design and the integration of the innovative energy technologies in this project will advance development and establish technical and economic readiness for accelerating the deployment of AEC tiu-oughaut the State. The desiai will be replicable to other communities throughout California with transferable knowledge and technologies. t strongly support the City of Huntington Beach's joint project with UC Irvine to accelerate the deployment oI' Advanced Energy Communities and ask you to consider their application. Should you leave any questions regarding this project, please do not hesitate to contact my office. SillMichelle Steel Orange County Supervisor, District 2 Cc: Commissioner Karen Douglas Commissioner David Hochschild Commissioner Andrew McAllister Commissioner Janea Scott Item 6. - 106 HB -232- _�1,�, � �`!�;Uf�;; January 29, 2016 Professor Jack Brouwer, Associate Director Advanced Power and Energy Program University of California Irvine, CA 92697-3550 RE: Letter of supportfor University of California's response to California Energy Commission GFO- 15-312 entitled "Huntington Beach Advanced Energy Community Blueprint: A Scalable, Replicable, and Cost -Effective Model for the Future" Dear Professor Brouwer: CIELO is pleased to support the initiatives of the City of Huntington Beach and the Advanced Power and Energy Program at the University of California, Irvine on the UCI-APEP proposed effort entitled "Huntington Beach Advanced Energy Community Blueprint: A Scalable, Replicable, and Cost -Effective Model for the Future." We support the submission of this proposal in response to the California Energy Commission's Electric Program Investment Charge (CEC EPIC) solicitation GFO-IS-312. CIELO is focused on developing new businesses and jobs in the Huntington Beach community, specifically the Oak View neighborhood. We believe this opportunity would be beneficial to the residents of the Oak View community. We look forward to supporting you and the city in this project. Sincerely, v� John Hobson CEO, CIELO 16787 Beach Blvd, Ste 233 • Huntington Beach, CA 92647 • (949) 891-2044 • www.cielocommunity.org Tax ID #61-1495237 HB _23 3_ Item 6. - 107 Fikes, Cathy From: Alex Turek <aturek@gridalternatives.org> Sent: Monday, November 07, 2016 5:00 PM To: CITY COUNCIL Subject: Comment in Support of Huntington Beach CEC EPIC Grant Attachments: CityofHB_CECGrantSupport_110716.pdf To whom it may concern: Attached you will find GRID Alternatives Greater Los Angeles' letter of support for the City of Huntington Beach and the University of California - Irvine's CEC EPIC grant. Please do not hesitate to reach out with any questions. Thank you, Alex Alex Turek I Multifamily Development Manager GRID Alternatives Greater Los Angeles 1338 S. Flower St. I Los Angeles, CA 90015 o: 310-579-9196 1 f: 310-388-0288 19.-- Website I Facebook I Twitter I Photo Gallery Hi November 7, 2016 To: Councilmember Dave Sullivan Councilmember Barbara Delgleize Councilmember Billy O'Connell Councilmember Erik Peterson Councilmember Jill Hardy Councilmember Mike Posey As the nation's largest non-profit solar installer, GRID Alternatives (GRID) understands how the lives of low- and moderate -income families can be greatly improved through the installation of solar. Not only do these households stand to benefit the most from the additional income of monthly utility bill savings, but their quality of life is also improved through the creation of well -paid green career opportunities in a solar industry that has realized twenty percent job growth for three consecutive years. To this end, GRID views each of its installations as a job training opportunity. To date, over 7,600 solar systems and 27+ MW of solar capacity has been installed for low income families. This has allowed us to provide over 28,800 job trainees with hands-on rooftop experience, linking many of these job trainees to full time positions in the industry. We believe an equitable clean economy should include the deployment of new technologies in the state's most economically and environmentally disadvantaged communities; constructed and installed with a workforce reflective of its citizenry across all income levels. For these reasons, GRID Alternatives Greater Los Angeles (GRID GLA) is emphatically in support of the City of Huntington Beach's and the University of California — Irvine's (UCI) California Energy Commission (CEC) Electric Program Investment Charge (EPIC) Advanced Energy Community Blueprint grant. The grant provides Huntington Beach a unique opportunity to sere as a model for our state and showcase how best to achieve net zero energy at the neighborhood level — a critical milestone for California's carbon -free future. In addition, not only does this grant allow the city to be a testbed for technological innovation, it concurrently offers the opportunity to transform one of its most economically disadvantaged neighborhoods in the Oak view community. While Phase I of this grant enables researchers to understand the full scale of this opportunity, a potential Phase II will leverage CEC funds to actually implement and achieve a net -zero Oak View community. Phase II also brings with it a significant opportunity to train up a local community workforce of whom will be a primary catalyst behind the community's transformation. GRID GLA, in conjunction with the City of Huntington Beach and UCI, has already considered this opportunity, and have begun preliminary discussions with local trade schools and community advocates to design a community workforce development program. The potential impact of this grant opportunity is indeed immeasurable. GRID GLA urges Huntington Beach City Council to provide its support for this innovative and transformative CEC EPIC grant. The City has already proven to be a leader in clean energy and sustainability for Orange County and with this continued research, can truly become a model for the rest of California and the world. Sincerely, Alex Turek Multifamily Development Manager GRID Alternatives Greater Los Angeles Gtii7 A ,errai �-eGr:,.<ter _A i3:8 South rovve r Str2e�. 0 310.735.9762 L in oq a@ gn altert.itiies.ory cos Angeles, CA 90015 F 310.388.0288 W gridla.org