Cost Reduction Lab

Our team has a decarbonization cost reduction proposal in mind that does not fall within one of the five stated priority problem areas. Can you please share how much additional weight is given to proposals that fall within one of the stated problem areas during the evaluation process?

Additional weight is not given to proposals that fall into one of the stated problem areas. Problem statements listed in Section 5 of the RFP are examples.

Can an entity participate in applications with multiple teams, or is each entity limited to a certain number of applications?

Applicants may submit multiple separate proposals if the Projects are distinctly different from each other. Applicants may be awarded multiple grants at the discretion of MassCEC.

We already have an active grant with MassCEC – can we still apply for this funding?

Applicants with active MassCEC grants may apply for funding through the Cost Reduction Lab provided their proposed demonstration project is distinct from work being done through their existing grant. Funding requested should not be duplicative of any costs already being covered by the existing grant. Applicants should disclose their participation in any other MassCEC programs in their application.

I realize the demonstration sites need to be in MA. Does the technology or business model have to be MA based?

The proposed technology or business model does not necessarily have to be MA-based; however, proposals will be evaluated, in part, by relevance in the context of the Massachusetts market and potential for cost reduction in Massachusetts specifically, as further described in Section 9 of the RFP.

Can there be a monetized open source solution?

Monetized open source solutions may be proposed, and will be evaluated based on the evaluation criteria listed in Section 9 of the RFP, including the proposed solution's ability to scale in the Massachusetts market.

Will MassCEC negotiate project scope and budget with applicants during the application review period?

Yes, we reserve the right to negotiate with applicants about project scope and budget. Please refer to Section 9 of the RFP for more information on how budget is evaluated.

How rigid is the two year timeline for implementation?

We prefer that demonstration activities occur within two years, however the program timeline can be flexible depending on the type of project and justification for an extended timeline described by the applicant in the application.

Does the baseline we are comparing our project against need to be demonstrated in the field as well?

No. The baseline scenario can be based on existing data or modeling; you do not need to have a "control group" in the field.

What is the minimum cost share requirement?

We do not have a minimum cost share requirement, nor do we expect every applicant to include cost share in their proposal. Applicants should describe what they are able to contribute to the project, including funding, time, and other resources, in their proposal.

Are manufactured homes an eligible building type under this program?

Yes, manufactured homes are an eligible building type provided they are existing structures, not new construction.

How should applicants submit letters of support?

Letters of support may be attached to the Project Narrative and submitted via the Jotform linked above.

Could you please confirm whether the Massachusetts Clean Energy Center permits a nonprofit entity to apply its federally approved indirect cost rates in its price proposal?

Yes, entities may use any cost rates, including federally approved indirect cost rates, in their budget proposal. All costs will be evaluated based on the selection criteria in Section 9 of the RFP. Such costs should be incorporated into the total rates proposed, which will be considered against other applications received as per the selection criteria. Please make note if your institution has federally agreed overhead rates.

Page 8 of the RFP it states “It is MassCEC’s policy not to compensate for general organizational administration, overhead, or general-purpose expenses including materials or facilities that are not uniquely associated with a MassCEC-funded project.” Is there an allowable percentage of the Cost Reduction Lab grant that could be allocated to cover staff time (hourly rate, fringe, etc.) to carry out a project proposal and if not what restrictions are there around this?

The clause referenced on page 8 of the RFP refers to MassCEC's intention not to cover general overhead expenses that are not associated with the grant project. Any overhead expenses included in the budget proposal should be justified as directly or indirectly associated with the grant work and should be worked into the project team's staff rates whenever possible. MassCEC recognizes that some organizations require documentation of overhead costs. Applicants are encouraged to explain this requirement in the budget section of the applicant.

If the proposed project includes technology that falls within the general guidelines, i.e. scalable, easy implement, meets the cost reduction targets, and is generally open source, but has certain proprietary or sensitive data, such as technology code or customer data, would the project still be eligible?

Yes, a proposed project with both open source and proprietary components is generally eligible, and will be evaluated as described in Section 9 of the RFP. Depending on the details of the project, some data that is not made available to the general public may need to be made available to MassCEC to satisfy reporting requirements.

Are technology providers eligible to be the Lead Applicant, or does the program expect a contractor- or installer-led proposal with the tech provider as a partner?

Yes, technology providers are eligible to be the Lead Applicant on a proposal.

Does MassCEC want to see a full year of data, such as operating costs or other data, from the demonstration sites?

While the Cost Reduction Lab program focuses on cost reduction in deployment of clean energy solutions, supporting data, including those listed above, are welcome. Data collection beyond cost differential should focus on documenting similarities and differences between the demonstration and the baseline scenario. For example, when comparing window heat pumps to traditional heat pumps, it may be helpful to document resident satisfaction between the two types of systems or collecting data on operating costs of window heat pumps over time compared to typical operating costs of traditional systems.

Are resumes optional or required for the Cost Reduction Lab application? Will there be a place to upload them in the JotForm?

Resumes are encouraged, though not strictly required. Applicants should describe the applicant team's experience and qualifications in their proposal as described in Section 8 of the RFP. Resumes should be attached to the project narrative and submitted via Jotform.

Can CRL grant funds be used to buy down costs of electrified equipment/appliances (after available rebates/incentives from Mass Save are applied to costs)?

Capital costs, including costs of electrified equipment, are generally considered eligible expenses. Eligibility of certain expenses may be Project specific and will be finalized through mutual agreement between the applicant and MassCEC during the contracting process. Keep in mind the purpose of Cost Reduction Lab funding is to demonstrate a solution that reduces the cost of decarbonization on its own, rather than simply buying down the cost of decarbonization.

Will CRL grant funds for electrified equipment/appliances be available upfront (so residents do not carry out-of-pocket costs for upgrades that will be incentivized)? If not, what is an expected timeframe for CRL funds to flow for resident reimbursement?

Applicants may propose a milestone-based payment schedule that best fits the needs of the specific project being proposed. Typically, it is MassCEC's policy to reimburse for expenses incurred, however final payment schedule determination will be made through mutual agreement between the applicant and MassCEC during contracting.

Please provide an example of a project solution that would not be considered open-source freely available for implementation.

For example, a project solution coming from a private company that utilizes a vertically integrated approach with proprietary IP and limited deployment plans in Massachusetts would not be an open-source solution. A successful Cost Reduction Lab proposal would provide a viable path to scale to the Massachusetts market, while the approach described in this example would struggle with capacity to scale sufficiently.

How is in-kind cost share defined and how should it be calculated for the proposal and for the project?

In-kind cost share can include any resource an applicant can contribute to their proposed demonstration project that is not direct cash cost share. Examples of in-kind cost share include staff time or manufacturing space. More details about what is considered cash cost share is available in Section 11 of the RFP. As there is no minimum cost share requirement, applicants should describe what level of cost-share, if any, they are able to contribute to their demonstration project.

Can MassCEC provide an example calculation how cost savings will be measured and attributed? Can MassCEC provide standardized baseline calculations for all awardees?

As each proposal is different, each proposal's baseline scenarios and cost savings calculations will be different as well. As such, MassCEC is unable to provide specific example calculations or standardized baselines. Baseline scenarios should represent the "business as usual" scenario that the demonstration's cost reduction is being applied to. Cost savings of the demonstrated solutions should be calculated against the baseline. MassCEC will evaluate baseline scenarios and may work with applicants and grantees to modify baseline scenarios with the goal of improving accuracy and alignment with the market and/or other grantees/applicants.

For the milestone payments, would it be acceptable to break payments into progress payments toward a milestone that would be billed monthly?

Applicants may propose a milestone-based payment schedule that best fits the needs of the specific project being proposed. Final payment schedule determination will be made through mutual agreement between the applicant and MassCEC during contracting.