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[Federal Register Volume 79, Number 126 (Tuesday, July 1, 2014)]
[Notices]
[Pages 37303-37306]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-15386]

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DEPARTMENT OF ENERGY

Microgrid Competition

AGENCY: Office of Electricity Delivery and Energy Reliability, 
Department of Energy.

ACTION: Notice of a competition.

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SUMMARY: The U.S. Department of Energy (DOE) announced the 
administration of an incentive prize competition titled ``Microgrid 
Competition.'' The goal of this Department of Energy Incentive Prize 
Competition is to support implementation of microgrids to enhance 
resiliency of the U.S. grid and to provide a cleaner and more efficient 
and cost-effective power system. The concept of this Competition 
originated from the Resilience Incentive Prizes Workshop that was 
sponsored by the Sandy Rebuilding Task Force to harness innovation and 
generate breakthroughs in energy infrastructure resilience and to help 
communities become more resilient to future events that may occur. The 
Competition is in further support of the DOE-led grand challenges to 
make the U.S. grid more resilient.

DATES: See Key Challenge Dates and Deadlines in SUPPLEMENTARY 
INFORMATION.

ADDRESSES: The Microgrid Competition is available at http://www.energy.gov/microgridchallenge.

FOR FURTHER INFORMATION CONTACT: Questions regarding this Competition, 
its requirements, or evaluation criteria can be submitted to 
MicrogridCompetition@hq.doe.gov.

SUPPLEMENTARY INFORMATION:

I. Key Challenge Dates and Deadlines

    Submission Period: July 1, 2014, to August 29, 2014, 11:59 p.m. 
EDT.
    Judging Period: September 2, 2014, to September 30, 2014.
    Data Validation Period: October 1, 2014, to October 20, 2014.
    Announcement of Winners: October 22, 2014, to October 31, 2014.

II. Introduction

    The Competition will award prizes for operational microgrids in the 
U.S. with interconnected distributed energy resources (DER) that 
provide uninterruptible power to critical facilities and services 
during emergencies. Critical facilities and services are defined by the 
Contestants, but typically involve those associated with preserving 
public health and safety. Under this Competition, critical facilities 
and services are grouped into the following six segments: Municipal 
facilities; commercial facilities; industrial facilities and 
activities; emergency shelters; healthcare and hospitals; and other 
government facilities. Each Submission must clearly identify for which 
one of the six competition segments it is being entered. Contestants 
also are encouraged to partner with local utilities in the Competition 
submission.

III. The Prizes

    A total of $600,000 in prizes is considered to be awarded under 
this Competition, i.e., one award of $100,000 in each of the six 
segments. The award will recognize the operational microgrid in each 
segment that has had the best current performance, with evidential data 
of the record, in enhancing grid resiliency and providing a cleaner and

[[Page 37304]]

more efficient and cost-effective energy system. Each winner will be 
invited to a public announcement event hosted by the DOE and its 
supporters and will be highlighted on the DOE's Web site.

Competition Details

I. How does the competition work?
II. Submission Requirements
III. Rules of the Competition
IV. Evaluation of Submissions
V. Verification and Announcement of Winners
VI. Authority and Prize Amount
VII. Privileged or Confidential Information
VIII. Additional Terms and Conditions
IX. Contact Information
Appendix A: Microgrid Operational Data Template File (Excel, 33 KB, 
for downloads).
Appendix A is available at http://www.energy.gov/microgridchallenge.

Competition Details

I. How does the competition work?

    The U.S. Department of Energy (DOE) Office of Electricity Delivery 
and Energy Reliability (OE) is hosting a national competition among 
operational microgrids to enhance grid resiliency and provide a cleaner 
and more efficient and cost-effective energy system. All Contestants 
must submit (1) complete microgrid system design and benefit 
documentation and (2) complete microgrid operational data using the 
template file in Appendix A. Appendix A is available at http://www.energy.gov/microgridchallenge.
    The microgrid system design and benefit documentation shall include 
a description of the following:

 Boundaries of the microgrid system
 DER, electrical loads (critical and noncritical), and thermal 
loads (if present) in the microgrid
 Locations and quantities of fuel sources for microgrid 
generation assets
 Distributed resources interconnection application accepted by 
the utility with jurisdiction
 The microgrid electrical circuit diagram including the 
locations of the DER, microgrid switch, critical and noncritical 
electrical loads, thermal loads, microgrid protection equipment, 
utility protection equipment, and the interface with the area electric 
power system (EPS)

    Using the information and data submitted, the DOE will evaluate 
each Submission according to four performance criteria: Resiliency, 
clean energy system, system energy efficiency, and cost effectiveness. 
This evaluation will result in a score for each criterion. For example, 
a Submission will receive one score designated as ``A'' for resiliency, 
a score ``B'' for clean energy system, a score ``C'' for system energy 
efficiency, and a score ``D'' for cost effectiveness. In each of the 
six competition segments, the Submission that has the highest combined 
score from all four criterion scores (i.e., A+B+C+D) will win a 
Microgrid Most Valuable Participant (MVP) Award. The six competition 
segments, each defined by the primary type of customer facilities or 
activities receiving service from the microgrid, are:

Segment 1: Municipal facilities (e.g., police stations, fire 
stations, water and wastewater facilities)
Segment 2: Commercial facilities (e.g., telecom/data centers, 
financial centers)
Segment 3: Industrial facilities and activities (e.g., 
transportation, critical manufacturing, fuel supply chain)
Segment 4: Emergency shelters (e.g., housing, lodging, 
schools, etc.)
Segment 5: Healthcare/hospitals
Segment 6: Other government facilities (military and non-
military)

    The microgrid for Submission can be owned and/or operated by 
customers, electric utilities, or independent providers. Depending on 
the Submissions received, the DOE anticipates making one Microgrid 2014 
MVP Award in each segment, with up to a total of six MVP Awards to be 
made under this Competition. Each Microgrid 2014 MVP Award recipient 
will receive a cash prize of $100,000.
    Each Submission will be evaluated according to the following 
performance criteria, with a numeric score of 0-25 resulting under each 
criterion.

Score A (0-25) for Resiliency

    Resiliency will be evaluated and scored based on adequacy of black 
start capabilities for microgrid generation assets, ability to island 
from and reconnect with the area EPS that meets the requirements of the 
IEEE 1547TM Standard for Interconnecting Distributed 
Resources with Electric Power Systems, and adequacy and essential 
nature of critical facilities and loads in the microgrid. In addition, 
the adequacy and availability of microgrid generation and storage 
assets to meet and exceed the customer-defined objectives for 
resiliency will be evaluated and scored. These objectives include the 
duration required for the microgrid to continuously serve all critical 
loads during grid outages and the ability to support future added 
critical loads to the microgrid. Lastly, access to uninterruptible fuel 
sources for generators will be evaluated and scored to ensure that all 
critical loads can be adequately served for the specified outage 
duration.

Score B (0-25) for Clean Energy System

    The Cleanness of the microgrid system is measured by the percent 
reduction in the annual marginal CO2 emissions resulting 
from microgrid operation, as compared to the base case of no DER or 
microgrid for the same boundary area. It is calculated as follows:

Reduction in total annual marginal CO2 emissions (%) = 1-
(total emissions with microgrid operation/total emissions for the base 
case of no DER or microgrid)

    Total emissions include both emissions produced outside of the 
microgrid boundary (i.e., emissions associated with the generation, 
transmission, and distribution of electricity that is inputted to the 
microgrid area) and those generated within the microgrid area. For the 
purpose of this Competition, the published annual marginal 
CO2 emission factors \1\ for the corresponding region of 
each microgrid area (also shown in the data file template, under tab 
``MEFs'') will be used to assess total emissions and the % reduction 
per the formula above.
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    \1\ Siler-Evans, K., Azevedo, I.L., Morgan, M.G., (2012). 
Marginal emissions factors for the US electricity system. 
Environmental Science & Technology, 46 (9), pp. 4742-4748.
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Score C (0-25) for System Energy Efficiency

    This evaluation will be based on the percent improvement in system 
energy efficiency, using the formula below:

Improvement in system energy efficiency (%) = 1-(total energy supplies 
after microgrid implementation/total energy supplies before microgrid 
implementation)

    Total energy supplies for both before and after microgrid 
implementation include the total utility-supplied electrical and 
thermal energy (i.e., electricity and other fuel supplies, with all 
converted to source or primary BTU \2\) used to serve the same loads 
year-round.
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    \2\ For the purpose of this Competition, the conversion of 
electric energy to primary BTU is 11,480 BTU/kW-hr.
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Score D (0-25) for Cost-Effectiveness

    Cost effectiveness will be measured based on the NPV (net present 
value) of the microgrid project in $/kW. The components for the NPV 
calculation shall include fixed costs (design, permitting, 
interconnection, installation, commission testing, etc.), annual costs 
(operation and

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maintenance [O&M], fuels, electricity import, etc.), and annual savings 
(from utility bills, reduced downtime, ancillary services, etc.). For 
the purpose of this Competition, the NPV is calculated by deducting the 
total costs from the sum of the annual cash flows over the project 
duration of 10 years using a discount rate of 10%. The annual cash 
flows are the net annual savings, which are the annual savings from 
microgrid operation less the annual costs of microgrid operation.

II. Submission Requirements

    The Submission requirements are as follows:
    1. Download and complete the Microgrid Operational Data Template 
File (Excel, 33 KB), and
    2. Email both the completed microgrid system design and benefit 
documentation and the completed microgrid operational data file to 
MicrogridCompetition@hq.doe.gov by August 29, 2014.

III. Rules of the Competition

    The following rules apply to this Competition.
     To be eligible, all competing microgrids must meet the 
following definition of a microgrid: A group of interconnected loads 
and DER within clearly defined electrical boundaries that acts as a 
single controllable entity with respect to the grid and can connect and 
disconnect from the grid to enable it to operate in grid-connected or 
island mode.
     All competing microgrids must have more than 150 kW of 
aggregated generation capacity serving two or more critical facilities.
     All entities are eligible to enter their operating 
microgrids in the U.S. or its Territories in this Competition, 
inclusive of those owned and/or operated by customers, electric 
utilities, or independent providers.
     Further, in accordance with the America COMPETES 
Reauthorization Act of 2010, 15 U.S.C. 3719(g), the following 
requirements must be met to be eligible to win a prize under this 
Competition:
    (1) A private entity shall be incorporated in and maintain a 
primary place of business in the United States; an individual, whether 
participating singly or in a group, shall be a citizen or permanent 
resident of the United States; and
    (2) An individual or entity may not be a Federal entity or Federal 
employee acting within the scope of their employment.''
     Each Submission must clearly identify for which one of the 
six competition segments it is being entered. Although each entity is 
allowed to submit more than one microgrid project under this 
Competition, only one microgrid project can be entered by an entity in 
each segment. Also, the same microgrid project cannot be entered into 
more than one segment.
     All Contestants must submit complete microgrid system 
design and benefit documentation. The documentation must not exceed 20 
pages, including cover page, table of contents, charts, graphs, maps, 
photographs, tables, and other pictorial presentations, when printed 
using standard 8.5'' by 11'' paper with 1'' margins (top, bottom, left, 
and right) {single spaced{time}  with font not smaller than 11 point.
    All Contestants must submit complete microgrid operational data 
using the template file in Appendix A. Appendix A is available at 
http://www.energy.gov/microgridchallenge. All Submissions must provide 
one full year of microgrid operational data for the period of June 1, 
2013 to May 31, 2014 and one full year of the base-case data for the 
same yearly period (i.e., June 1 to May 31) immediately before 
microgrid operation. For example, if the microgrid project began its 
full operation in July 2011, the full-year microgrid operational data 
will be for the period of June 1, 2013 to May 31, 2014 and the full-
year base-case data will be for the period of June 1, 2010 to May 31, 
2011. All Submissions including complete system design and benefit 
documentation (submitted in a single file named ``DesignBenefit.pdf'') 
and operational data file (submitted in a single file named ``data.xls 
or .xlsx'') must be submitted before the Competition deadline of August 
29, 2014.

IV. Evaluation of Submissions

    All Submissions that meet the Competition rules will then be 
subject to evaluation by an expert panel. The expert panel will be 
appointed by the DOE, may include both Federal and non-Federal 
personnel, and will determine the Microgrid 2014 MVP Award winners. 
Each Submission will be evaluated on the four performance criteria and 
will be given a score for each criterion. The Submission that receives 
the highest combined score for all four performance criteria in each of 
the six competition segments is the presumptive winner for that 
segment.
    The presumptive winners will be required to have their microgrid 
design/benefit information and operational data (before and after 
microgrid implementation) validated by the DOE Technical Advisory Group 
(TAG) before receiving the Microgrid 2014 MVP Award. The TAG comprises 
microgrid experts from DOE national laboratories.
    The DOE reserves the right not to make a Microgrid MVP Award in a 
segment, if there are few qualifying Submissions submitted to that 
segment or if the submitted information or data cannot be validated by 
the TAG.

V. Verification and Announcement of Winners

    The DOE anticipates notifying the Competition winners of the 
Microgrid 2014 MVP Award in October 2014. Each winner will be required 
to sign and return to the DOE, within ten (10) days of the date that 
the notice was sent, an Affidavit of Eligibility and Liability/
Publicity Release (except where prohibited) in order to claim the award 
cash prize. At the sole discretion of the DOE, a potential winner will 
be deemed ineligible to receive the $100,000 cash prize if the entity 
fails to sign and return the affidavit of eligibility and liability/
publicity release within the required time period or if the Submission 
or the entity is disqualified for any other reason. In the event of a 
disqualification of a winner, the DOE, at its sole discretion, may 
award the applicable prize to an alternate winner. Winners will be 
invited to a public announcement event hosted by the DOE and its 
supporters and will be highlighted on the DOE's Web site.

VI. Authority and Prize Amount

    This Competition is being conducted under the authority of the 
America COMPETES Reauthorization Act of 2010, 15 U.S.C. 3719. Monetary 
prizes will be awarded subject to the availability of funds. The DOE 
reserves the right to suspend, cancel, extend, or curtail the 
Competition as required or determined by appropriate DOE officials. 
Nothing within this document or in any documents supporting the 
Competition shall be construed as obligating the DOE or any other 
Federal agency or instrumentality to any expenditure of appropriated 
funds, or any obligation or expenditure of funds in excess of or in 
advance of available appropriations. The DOE will award a single dollar 
amount to a winning Team, and each Team, whether consisting of a single 
or multiple Contestants, is solely responsible for allocating any prize 
amount among its member Contestants as they deem appropriate. The DOE 
will not arbitrate, intervene, advise on, or resolve any matters 
between entrant members. It will be up to each winning Team to 
reallocate the prize money among its member Contestants, if they deem 
it appropriate.

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VII. Privileged or Confidential Information

    All materials submitted to the DOE as part of a Submission become 
DOE records and cannot be returned. The DOE will use the materials to 
evaluate a Submission in accordance with the Rules of the Competition, 
as well as to establish benchmark performance for operating microgrids 
from information contained in all Submissions.
    The Freedom of Information Act (FOIA) and its amendments have 
resulted in an increasing number of requests from outside the 
Government for copies of materials submitted to federal agencies. If a 
Contestant's Submission contains information that he/she believes 
should be withheld from such requestors under FOIA on the grounds that 
they contain ``trade secrets and commercial or financial information'' 
[5 U.S.C. 552(b)(4)], the Contestant should:

    1. Mark the title page with the following legend:
    ``Some parts of this document, as identified on individual 
pages, are considered by the Contestant to be privileged or 
confidential trade secrets or commercial or financial information 
not subject to mandatory disclosure under the Freedom of Information 
Act. Material considered privileged or confidential on such grounds 
is contained on page(s) -------- and
    2. Mark each individual item considered privileged or 
confidential under FOIA with the following legend:
    ``The data or information is considered confidential or 
privileged, and is not subject to mandatory disclosure under the 
Freedom of Information Act.''

    Whenever a document submitted to the DOE contains information which 
may be exempt from public disclosure, it will be handled in accordance 
with the procedures pursuant to 10 CFR 1004.11 and described below. 
While the DOE is responsible for making the final determination with 
regard to the disclosure or nondisclosure of information contained in 
requested documents, the DOE will consider the Contestant's views in 
making its determination.
    (a) When the DOE may determine, in the course of responding to a 
FOIA request, not to release information submitted to the DOE without 
seeking any or further Contestant's views, no notice will be given the 
Contestant.
    (b) When the DOE, in the course of responding to a FOIA request, 
cannot make the determination without having the consideration of the 
Contestant's views, the Contestant shall be promptly notified and 
provided an opportunity to submit its views on whether information 
contained in the requested document (1) is exempt from the mandatory 
public disclosure requirements of the FOIA, (2) contains information 
referred to in 18 U.S.C. 1905, or (3) is otherwise exempt by law from 
public disclosure. The DOE will make its own determinations as to 
whether any information is exempt from disclosure. Notice of a 
determination by the DOE that a claim of exemption made pursuant to 
this paragraph is being denied will be given to a person making such a 
claim no less than seven (7) calendar days prior to intended public 
disclosure of the information in question.
    (c) Criteria to be applied by the DOE in determining whether 
information is exempt from mandatory disclosure pursuant to 5 U.S.C. 
552(b)(4) include:
    (1) Whether the information has been held in confidence by the 
person to whom it pertains;
    (2) Whether the information is of a type customarily held in 
confidence by the person to whom it pertains and whether there is a 
reasonable basis therefor;
    (3) Whether the information was transmitted to and received by the 
Department in confidence;
    (4) Whether the information is unavailable in public sources;
    (5) Whether disclosure of the information is likely to impair the 
Government's ability to obtain similar information in the future; and
    (6) Whether disclosure of the information is likely to cause 
substantial harm to the competitive position of the person from whom 
the information was obtained.

VIII. Additional Terms and Conditions

    Competition Subject to Applicable Law: The Competition is subject 
to all applicable Federal laws and regulations. Submitting to this 
Competition constitutes each Team and/or Contestant's agreement to the 
official rules as set forth on http://www.energy.gov/microgridchallenge 
and administrative decisions, which are final and binding in all 
matters related to the Competition. Eligibility for a prize award is 
contingent upon fulfilling all requirements set forth herein.
    Publicity: Except where prohibited, participation in the 
Competition constitutes each winner's consent for the DOE and its 
agents to use each winner's Submission information for promotional 
purposes through any form of media, worldwide, without further 
permission, payment, or consideration.
    Liability and Insurance: Any and all information provided by or 
obtained from the Federal Government is without any warranty or 
representation whatsoever, including but not limited to its suitability 
for any particular purpose. Further, in accordance with 15 U.S.C. 
3719(i), each Contestant shall provide proof of general liability 
insurance of $1 million per incident and a $5 million umbrella policy 
for claims by a third party for death, bodily injury, or property 
damage or loss resulting from an activity carried out in connection 
with the Competition, with the Federal Government named as an 
additional insured under the Contestant's insurance policy. 
Additionally, Contestants must agree to indemnify the Federal 
Government against third party claims for damages arising from or 
related to competition activities and for damage or loss to Government 
property resulting from such an activity.
    Taxes: Winners are responsible for both reporting and paying all 
applicable Federal, state, and local taxes payable from any prize 
amounts awarded under this Competition.

IX. Contact Information

    For questions about this Competition, contact DOE at 
Microgrid;Competition@hq.doe.gov.

Appendix A

    Microgrid Operational Data Template File is available at http://www.energy.gov/microgridchallenge.

    Issued in Washington, DC, on June 25, 2014.
Patricia A. Hoffman
Assistant Secretary, Office of Electricity Delivery and Energy 
Reliability.
[FR Doc. 2014-15386 Filed 6-30-14; 8:45 am]
BILLING CODE 6450-01-P
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