Xcel Energy RDF Higher Education Proposal Minnesota State Colleges and Universities April 1, 2013
Section 1. PROGRAM OVERVIEW Table of Contents Section 1. PROGRAM OVERVIEW... 1 Table of Contents... 1 Grant Application Form... 3 Section 2. SCOPE OF WORK... 6 Executive Summary... 6 Minnesota State Colleges and Universities Background... 7 Program Overview... 8 2.2 Program Goals... 9 2.3 Program Objectives... 9 2.4 Program Description... 10 2.5 Program Benefits... 10 Section 3. PROGRAM STRUCTURE... 13 3.1 Research Selection Protocols... 13 3.2 Research Performance Review Criteria... 16 3.3 Research Evaluation and Validation... 16 3.4 Schedule... 16 3.5 Reporting... 17 3.6 Intellectual Property... 19 3.7 Program Management... 22 SECTION 4 USE OF PROGRAM FUNDS... 24 4.1 Program Budget... 24 4.2 Program Cost Narrative... 24 4.3 Indirect Costs... 24 4.4 Co-funding... 24 Appendices Appendix A 1: Block Grant Budget for Higher Education Appendix A 2: Budget Narrative
Appendix B 1: Peer Review Evaluation Appendix C 1: Activity Chart Renewable Development Fund for Minnesota Institutes of Higher Education Minnesota State Colleges and Universities Appendix C 2: Time Schedule and Major Milestones Appendix D 1: Block Grant Budget for Higher Education Research Project Appendix D 2: Project Budget Narrative Appendix D 3: Quarterly Narrative Report Appendix D 4: Quarterly Financial Status Report Appendix E 1: Program Manager, Duane Carrow Appendix E 2: Project Manager, Dr. Shannon Peak Fiene Appendix E 3: Co-Principal Investigator, Dr. Matthew Julius Appendix E 4: Co-Principal Investigator, Dr. Patrick Tebbe 2
Grant Application Form Xcel Energy Renewable Development Fund Higher Education Block Grant (All JedionJ of thijjorm mujt be tompleted and attai hed to all Higher Edutation b!oik grant propojaij) Applicant Information NameofEntiry ~M~in~n=e~so~t~a~~~e~s~t~C~o~m~m~uru~ ~cy~a~n~d~t~ec~h~n~ic~a~l~c~o~ll~eg~e~----------- 1 Mailing Address -----=-15"""9"""3'---=-11"-tl-A"-"'-'-v=en=u=e~-------------------------------- (Address) Granite Falls, MN 56241 (Ciry, state, zip code) Contact Person ""'D"'-u""a~n=e'-'C"""a"""r:oro"-'w"--------------------------- Phone 320-564-5046 Email duane.carrow@mnwest.edu FAX 320-564-4582 Funding Request Block grant funding requested: $ 5 500 000 RDF Funds requested by year: 1st Year: $ 2 400 000 2nd Year: $ 2 050 000 3rd Year: $ 1 050 000 Program Duration Estimated Start Date April 2014 Estimated End Date ---=.A""lp~r""'il~2""'0""'1.!..._7 Institutional Background Primary Minnesota Accreditation Authoriry: North Central Ass. Higher Learning Commission Higher Education Type (check one): IZI MnSCU Institution 0 U of Minnesota Campus 0 Private Universiry OOther. Year Established: ----~1"--"9'--'4--"'6 Student Enrollment: 8,408 (headcount) Graduation Rate: ----"7'---"1'-'--.4-'--" 0 /!--"-o Student to Faculty Ratio: 16.22:1 (FYE) Page 1 of3
Program Team Dr. Richard Shrubb President, Minnesota West Community and Technical College 5 (Name Authorized Representative) (Title) (Years with Institute) Duane Carrow (Name of Program Manager) Director, Minnesota Energy Center (Title) 12 (Years with Institute) Gail Olson General Counsel 15 (Name of Legal Counsel) (Title) (Years with Institute) Dr. Matthew Julius, Ph.D. Professor, Department of Biological Science 12 (Name of Primary Research Evaluator) (Title) (Years with Institute) Dr. Patrick Tebbe, Ph.D. Professor, Mechanical and Civil Engineering 9 (Name of Secondary Research Evaluator) (Title) (Years with Institute) Dr. Shannon Peak Fiene, Ph.D. Professor, Mathematics 6 (Other- if relevant) (Title) (Years with Institute) Certification I am an authorized representative of the institution named on this form and have the requisite authority to act on its behalf. I hereby authorize Xcel Energy to make any inquiries and obtain any financial information necess.ary to evaluate my organization's capability to implement the proposed project. I also authorize Xcel Energy to make any necessary inquiries to verify the information I have I also release all necessary information to Xcel Energy. ("P':re:o~ted. 3-o17 -/~ Date Page 2 of3
I hereby certify that I have read and understand the terms and conditions contained in the Xcel Energy RFP and that the information contained in this proposal is true, correct and -~-l_ete to the best of my knowledge. Date Dr. Richard Shrubb, Ph.D. Typed Name President Title Page 3 of 3
Section 2. SCOPE OF WORK Renewable Development Fund for Minnesota Institutes of Higher Education Minnesota State Colleges and Universities Executive Summary The Minnesota State Colleges and Universities system (MnSCU) is submitting a request for a $5,500,000 block grant in response to Xcel Energy s request for proposals for the Renewable Development Fund for Minnesota Institutes of Higher Education. With its 31 institutions, including 24 two-year colleges and seven state universities, the Minnesota State Colleges and Universities system is the largest single provider of higher education in the State of Minnesota. The Minnesota Energy Center (MnEC), through Minnesota West Community and Technical College, will be the fiscal agent for this grant. The goal of the MnSCU Block Grant will be to solicit and select high quality research projects that will ensure the growth, development, and delivery of renewable electric energy technologies throughout the State of Minnesota. Research proposals will be solicited from all MnSCU colleges and universities. Proposals will conform to the RDF Block Grant guidelines and be distributed through two funding cycles with the intent of funding up to a maximum of 14 projects. All proposals will be reviewed by the Peer Review Committee and the Merit Committee which will be chaired by the Co-Principal Investigators. MnSCU has the appropriate mechanisms in place to adhere to the RDF financial, Intellectual Property, and royalty sharing guidelines. The MnSCU Program Team has extensive prior experience with managing grants. The Program Team is comprised of: Program Manager, Duane Carrow; Project Manager, Professor Shannon Fiene; and Co- Principal Investigators, Professor Matthew Julius and Professor Patrick Tebbe. Based on the geographic placement of the MnSCU colleges and universities, the Block Grant has the opportunity to provide research funds to a large group of researchers with diverse interests. Based on the research interests of the colleges and universities, MnSCU has the potential to focus on a variety of renewable electrical energy technologies versus focusing in on one particular renewable source. MnSCU sub-grantee projects will clearly demonstrate both economic and environmental benefit which in turn provides benefit to Xcel Energy ratepayers and the State of Minnesota. To demonstrate the research capabilities at MnSCU institutions, three specific pre-project concepts are used as examples throughout the grant narrative. In addition to regular scheduled communication among the sub-grantee key personnel, projects will be required to report progress on a monthly and quarterly basis. Along with one site visit per project, this schedule allows for maximum oversight of the MnSCU Block Grant. Quarterly updates will be submitted to Xcel Energy RDF, highlighting identification of key deliverables and monitoring of the overall budget. At the conclusion of the program period, a capstone event will be held to showcase all funded projects and the research results. It will be an opportunity for key stakeholders, members of the energy industry, and government officials to learn about the research conducted, the impact of the RDF fund, and to engage in meaningful discussion with key researchers across the state. 6
Renewable Development Fund for Minnesota Institutes of Higher Education Minnesota State Colleges and Universities Minnesota State Colleges and Universities Background With its 31 institutions, including 24 two-year colleges and seven state universities, the Minnesota State Colleges and Universities system (MnSCU) is the largest single provider of higher education in the state (Figures 1 and 2). The colleges and universities operate 54 campuses in 47 Minnesota communities and serve more than 430,000 students in credit-based and non-credit courses. Overall, the system produces about 41,700 graduates each year. The system offers customized training programs to employees from 6,000 Minnesota businesses each year. MnSCU s colleges and universities produce more graduates each year than any other educational system in the state and also serve the greatest number of students of color, low-income students, and students from educationally underserved communities. Minnesota residents comprise 88% of its students, and 80% of these stay in Minnesota after graduation to work. The law creating the MnSCU system was passed by the Minnesota Legislature in 1991 and went into effect July 1, 1995. The law merged the state's community colleges, technical colleges and state universities into one system. The system is governed by a 15- member Board of Trustees who are appointed by the governor and confirmed by the State Senate. Steven J. Rosenstone is the chancellor of the system and began his term with MnSCU on August 1, 2011. The Minnesota State Colleges and Universities system is comprised of distinct and collaborative institutions that offer higher education to meet the personal and career goals of a wide range of individual learners, enhance the quality of life for all Minnesotans, and sustain vibrant economies throughout the state. The Minnesota State Colleges and Universities system enables the people of Minnesota to succeed by providing the most accessible, highest value education in the nation. Figure 1: Map of MnSCU institutions MnSCU established seven industry centers to promote collaboration between institutions and partnerships with business and industry. In the fall of 2012, the Minnesota Energy Center Figure 2: MnSCU Metro institutions 7
Renewable Development Fund for Minnesota Institutes of Higher Education Minnesota State Colleges and Universities (MnEC) was established. Minnesota West Community and Technical College serves as the MnEC s lead. The Minnesota Energy Center supports workforce alignment through development of partnerships among business, industry, and education for the purpose of enhancing economic initiatives to meet the current and future needs of the state s energy industries. MnEC strives to fulfill workforce needs of business and industry and align the supply of graduates with employers needs in terms of numbers of graduates, location of programs, and degree attainment. MnEC coordinates alignment of skills and knowledge needed by employers with what is taught in instructional programs while providing outreach to improve student awareness of employment markets. MnEC s core expectation is to ensure efficient use of state resources for workforce development activities and initiatives by fostering a culture of cooperation within the Minnesota State College and University system while providing leadership representing Minnesota s local business and industry in state, national and international energy specific forums, activities, and economic development initiatives. MnEC serves as a resource for the creation and sharing of model curricula, educational pathways, degree/certificate programs, industry specific skill standards and best practices. Program Overview The Minnesota Energy Center (MnEC) will select and oversee quality renewable electrical energy technology related research and development projects within the MnSCU system through the implementation of a block grant program ( Block Grant ). Sub-grantee projects will be chosen based on their ability to improve and stimulate the use of renewable electric energy technologies throughout Minnesota. To demonstrate the research capabilities at MnSCU institutions, three specific pre-project concepts were collected. Specific information from these projects will be used as examples. The examples selected are: Anoka-Ramsey Community College s project entitled, "Biofuel Research/Demonstration Site: Double-Cropping Food Crops with Energy Crops for Electrical Energy Production" o To showcase the research capabilities of a two-year college and their leveraging of existing industry partnership. St. Cloud State University s project entitled, Microbial Power and Bioproduct Production using Food Waste from a College Campus o To showcase current research with strong industry partnerships. Minnesota State University, Mankato and Riverland College s project entitled, Remote Diagnostics/Prognostics of Wind Turbines with SCADA (supervisory control and data acquisition) o To showcase a partnership that leverages expertise between institutions. The selection of these examples does not guarantee that the specific projects will be funded; however, the examples demonstrate the uniqueness and strengths of projects that can be funded within the MnSCU system. These strengths include: 8
Renewable Development Fund for Minnesota Institutes of Higher Education Minnesota State Colleges and Universities Funding a wide variety of research interests: Due to the diverse research interests among the institutions and researchers within MnSCU, a wide range of research topics will be funded. Impacting a large geographic region: Due to the placement of MnSCU institutions throughout the state, projects have the potential for statewide impact. Facilitating collaborative projects: Due to the common MnSCU connection, colleges and universities will have pathways and resources to ensure the successfully implementation of research partnerships. Establishing and defining a pathway to bring technology to industry: MnSCU currently trains technical students through the two-year colleges and through customized training; thus allowing the transfer of technology to the workforce in a timely manner. 2.2 Program Goals The goal of the Block Grant will be to solicit and select high-quality research projects within the MnSCU system that will ensure the growth, development and delivery of renewable electric energy technologies throughout the State of Minnesota. Specifically, the goals are to (1) Solicit proposals for high quality renewable electric energy technology research projects, (2) Review projects to access relevance and merit (3) Select the best projects to be funded and (4) Ensure projects adhere to goals, objectives, and timelines. In addition to defining the goals of the Block Grant, each project will have their own specific research goals. Below the goals of each of the example projects are given to demonstrate relevance: The goal of the Anoka-Ramsey Community College project would be to demonstrate feasibility, develop a showcase site, train students and educate farmers on the benefits, feasibility and sustainability of double cropping energy crops with food crops. The goal of the St. Cloud State University project would be to construct an anaerobic digester that will produce electricity via digestion of campus food wastes. In addition, research would be conducted into the uses of the waste products. The goal of the Minnesota State University, Mankato and Riverland College project would be to generate algorithmic tools for the purpose of diagnostics and prognostics on medium to large scale wind turbine systems. The project would also incorporate the training of wind technician students in the use of these tools. 2.3 Program Objectives In order to accomplish the goals of the Block Grant, the following objectives have been established: Objective 1: Develop and distribute an RFP to all MnSCU institutions soliciting proposals of research projects. Objective 2: Develop standards and committees to evaluate and select proposal based on peer and merit review. Objective 3: Oversee and report the progress of awarded projects. 9
Renewable Development Fund for Minnesota Institutes of Higher Education Minnesota State Colleges and Universities Objective 4: Disseminate research findings among MnSCU institutions and the state. In addition, each project will have specific, achievable objectives: The initial objective of the Anoka-Ramsey Community College project are to develop a large scale training and demonstration area that implements double cropping of oil-seed energy crops (camelina/pennycress) and food crops (sorghum, corn, soybean, & sunflower). Once the site is established it will be used to (1) Conduct research on the feasibility and profitability of double cropping (2) Train Anoka-Ramsey students on the practice and production of the energy crops and (3) Educate community members on the results and feasibility of this project for biofuels to be utilized for electrical generation. The objectives of the St. Cloud State University project are to consistently (1) Generate 100-200kW of power from campus food waste (2) Sequester >30% of the CO 2 produced via the generators combustion of methane in the form of algal biomass and (3) Remediate >50% of the liquid waste to recreational standards through algal biomass production. The objectives of the Minnesota State University, Mankato and Riverland College project are to (1) Develop and improve existing mathematical models used as diagnostic tools for medium to large scale wind turbines (2) Apply these tools to test the models and facilitate the transferring of data and (3) Train Riverland Community College wind energy technician students on the use of these systems. 2.4 Program Description MnSCU will administer and oversee the implementation of a Block Grant to fund research related to renewable electrical energy technology projects. The program will be to solicit proposals for research from within the MnSCU system. Proposals will then be reviewed and evaluated to ensure they adhere to the Xcel RFP using peer and merit review committees. MnSCU will oversee the awarded projects to ensure objectives and timelines are accomplished. In addition, MnSCU will report, communicate, and disseminate project reports to Xcel Energy. Examples of project descriptions: The Anoka-Ramsey Community College project will expand an existing agricultural test site to demonstrate the possibility of growing biofuel crops, in conjunction with other cash crops. The forty acre site will be split into four sections at 10 acres each with approximately 9 acres being intercropped in each section, leaving approximately 1 acre left as a control site for the food crop; thus 90% will be fully intercropped with food and energy, while 10% will be left for control. The facility will allow researchers to identify which crops are most successful/profitable intercropping with oil-seed crops. Educational events will be held to train and relay the results to area farmers, students, faculty, and interested community members. 10
Renewable Development Fund for Minnesota Institutes of Higher Education Minnesota State Colleges and Universities The St. Cloud State University project will include an anaerobic digester, a methane combustion generator, and an algal biomass generator. The anaerobic digester will be used to produce electricity via digestion of campus food wastes at the university. Waste products from the digester (liquid waste) and generator (CO 2 ) will be remediated via an algal biomass generator. Products from this generator will then be used for the production of additional biomass for biofuels or for other high value products such as nutriceuticals and animal feeds. The institution has a working relationship with corporate research partners that specialize in this area. The Minnesota State University, Mankato and Riverland College project will conduct research and development activities aimed at improving diagnostic data and predictive analysis for wind turbines. The research would combine algorithmic development, experimental testing, and online training of wind technician students. 2.5 Program Benefits The MnSCU Block Grant program will be beneficial to researchers, Xcel Energy, ratepayers, and the State of Minnesota. MnSCU has the opportunity to provide research funds to a large group of researchers with diverse interests across the system. Based on the research interests of the colleges and universities, MnSCU has the potential in this research grant to focus on a variety of renewable electrical technologies versus focusing on a single renewable source. Economic MnSCU will handle the day-to-day management of the individual projects using its wellestablished network throughout the state. Since the system already exists, MnSCU is wellequipped to facilitate and oversee multiple projects across a large number of institutions. Therefore, the economic burden of administration will be minimized. Based on the MnSCU selection process, there is the opportunity to identify short-term projects (less than three years) that could yield faster results and immediately impact the marketplace. Intellectual property MnSCU institutions have the full force and support of the Attorney General s Office and the MnSCU Office of General Counsel to pursue intellectual property protections in the form of patents and copyrights. MnSCU s business models provide great flexibility in the commercialization of IP Assets which allows a variety of stakeholder s interests to be accommodated. Benefits to Xcel Energy Electric Ratepayers and Benefits to Research in the State of Minnesota With a system in place to coordinate projects across the state, the geographic advantage to Xcel and their taxpayers is apparent. Projects could potentially be awarded throughout the state and throughout the entire Xcel Energy customer area within the State of Minnesota. 11
Renewable Development Fund for Minnesota Institutes of Higher Education Minnesota State Colleges and Universities MnSCU projects will involve students in the research process whether as student research assistants or integration of research into the classroom. This opportunity not only exposes students to research but also to the energy industry as a future career opportunity. As a public system of higher education, research and findings will be shared across institutions with the opportunity to expand. Environmental: Each project proposal must identify the anticipated benefits. It is expected that proposals will focus primarily on potential economic and environmental benefits. The examples demonstrate the types of benefits that can be expected: o o o The benefits of the Anoka-Ramsey Community College project are (1) An education facility available to all Minnesotans will be created that will provide education of growing energy crops, and biofuel production, and its use for electrical generation. (2) Knowledge will be gained and transferred to Minnesota farmers and citizens regarding the production of energy crops used in the production of biofuels. (3) Economically, there would be an impact to farmers in terms of crop production and biofuel producers and users in terms of supply of inputs. The benefits of the St. Cloud State University project are (1) Development of a new system of using food waste to generate electricity leading to an alternative energy production system. (2) The electrical generation will be conducted on a state facility, lowering its infrastructural costs to taxpayers and ratepayers. The benefits of the Minnesota State University, Mankato and Riverland College project are (1) Improved fault prediction would benefit both large scale and small, residentialscale wind turbine installations. (2) This could lead to improved reliability and reduced cost of operation. 12
Section 3. PROGRAM STRUCTURE Renewable Development Fund for Minnesota Institutes of Higher Education Minnesota State Colleges and Universities 3.1 Research Selection Protocols The MnSCU grant program team will be responsible for the solicitation, evaluation, and selection of subgrant projects. Projects will be selected through a three-phase plan (1) proposal submission (2) proposal review and (3) proposal notification (Figure 3). MnSCU will establish a Peer Review Committee (PRC) and a Merit Committee (MC). The Co-Principal Investigators (PIs) will chair both of these Committees. The committees will be made up of academic and industry professionals who have research backgrounds and are knowledgeable in the field of renewable energy. A PI, or any member of either committee, who has a personal involvement in any grant request, will recuse him or herself from discussion or selection of that request. Often MnSCU s campuses include tribal communities. Proposed activities submitted under this solicitation may include tribal groups and lands because of the broad geographic placement of the campuses. If tribal communities or lands are involved in the proposed research, efforts will be made to add members from the appropriate tribal community to the peer review committee. These members will be asked to critique proposals involving tribal issues and will have full committee responsibility for these proposals. All MnSCU colleges and universities will be encouraged to submit a project proposal. The MnSCU grant program team will execute two rounds of proposals. It is expected that up to eight projects will be selected for funding during the first round and up to six projects will be selected during the second round with all awards made by January 2015. The maximum request for proposals is $750,000 (plus 15% indirect cost rate). Proposal Submission (30 days) Following the requirements of this RFP, the grant program team will issue a sub-grant announcement with additional guidelines and reporting forms (Appendix D) to all MnSCU colleges and universities. The sub-grant announcement will include an activity chart and time schedule (Appendix C). Information and frequently asked questions will be posted to the Proposal Submission (30 days) Sub-grant opportunity announced Proposals submitted Proposal Review (30 days) Proposals reviewed by Peer Review Committee Proposals reviewed by Merit Committee Recommendation of awards Proposal Notification (30 days) Notification of decision MnSCU Intra-agency agreement executed Figure 3: MnSCU Selection Process 13
Renewable Development Fund for Minnesota Institutes of Higher Education Minnesota State Colleges and Universities MnEC website (in development). A series of webinars will be held to address the sub-grant announcement. It is expected that proposals will be submitted through a web-based tool coordinated from the MnSCU system office. Proposal Review (30 days) Proposals will be reviewed and scored according to the following criteria: 1. Qualifications and Resources: (30% weight) The participating institution and key project personnel must have the capability, experience, qualifications, and credentials to manage the project. This will be demonstrated through past performance records. The applicant must show that their institution s infrastructure and resources are adequate to support the project s objectives. If the proposed project involves modification or impacts existing or new facilities, prior approval (institution and/or system office) must be included. The applicant must show that their site access plan and intellectual property framework are adequate. 2. Technical Merit & Feasibility: (40% weight) The applicant must show the validity of their project s proposed approach and the likelihood of its success, based on previous and current work. It must show that it solves a technical issue related to renewable electrical energy. The proposal must make clear the scientific principles underpinning the proposed project. The project must show the ability to (1) remove a technical, financial, or other barrier to improve the penetration of renewable electrical energy into the market, using reasonable costs that will benefit the State of Minnesota (2) solve a technical issue related to renewable electrical energy (3) show how the project advances science and/or technology so that it is a value to electric ratepayers and (4) show how the expected research contribution will bring a technology to market. The proposal must identify its key technical and programmatic risk areas and identify all foreseeable barriers to its success. The applicant must show the degree to which the proposal s objectives are reasonable and achievable within the project time frame. 3. Implementation/Project Management Plan: (30% weight) Each project will be judged on the degree to which its plan will likely contribute to achievement of its primary objectives, including key elements such as: work break-down structure, viable and achievable resource-loaded schedule, appropriately defined objectives, well-defined tasks and appropriate resources (technical, facility, equipment and labor), reasonableness and completeness of the schedule; and/or 14
Renewable Development Fund for Minnesota Institutes of Higher Education Minnesota State Colleges and Universities technical quality of critical-path planning, including the adequacy and value of proposed milestones, go/no-go decision points, and performance metrics. Each project must show how the proposed management controls are adequate to mitigate associated issues and risks. Each project must show the degree to which the proposal comprehensively addresses key project implementation issues. As illustrated in Figure 3, the review process is as follows: 1. Initial review by Peer Review Committee The PRC, utilizing a scoring sheet (Appendix B 1), will perform an initial review to determine that (1) the applicant is eligible for an award (2) the information required by the announcement has been submitted (3) all mandatory requirements are satisfied and (4) the proposed project is responsive to the objectives of the funding opportunity announcement. If a project fails to meet these requirements, it may be deemed non-responsive and eliminated from full Merit Review. 2. Proposals Subject to Merit Review Proposals that pass the initial PRC review will then be subjected to merit review by the MC comprised of academic and industry professionals. The role of the MC is to evaluate the proposed projects intellectual and research merit and impact. Reviewers will be asked to review each proposal in its entireity and provide comments and a rating of Excellent, Very Good, Good, Fair, or Poor. Comments will highlight each proposal s strengths and weaknesses and provide a summative statement about the overall merit of each proposal. 3. Peer Review Committee Consideration The PRC will meet for one-day to select awarded projects. The Committee will consider the merit review statements when making their selections; however, they will also base selections on their own research knowledge, on program policy factors and on fund availability. In the event that several proposals score equally, preferences will be given to those proposals that include plans for cost-sharing, leveraging RDF grant money with other funding sources and/or the minimization of indirect costs. 4. Peer Review Committee Discussions with Applicant The PRC may enter into discussions with a selected applicant for any reason deemed necessary, including, but not limited to (1) that their budget is not appropriate or reasonable for their budget requirement (2) that only a portion of the project would be selected for an award (3) that special terms and conditions would be required. Failure to resolve the issues identified by the PRC would preclude an award to the applicant. 15
Proposal Notification (30 days) Renewable Development Fund for Minnesota Institutes of Higher Education Minnesota State Colleges and Universities Funded projects will receive notification and following MnSCU Procedure 5.14.2 Consultant, Professional or Technical Services an Intra-Agency Agreement will be executed between the sponsored project s home institution and Minnesota West Community and Technical College (fiscal agent). During Round One, projects not selected may request written feedback on the proposal. These projects will be encouraged to address and strengthen proposal weaknesses and to re-submit during Round Two. 3.2 Research Performance Review Criteria The standard for all investigative review and oversight will be the degree to which each project focuses on renewable electrical energy research to meet the requirements of Minnesota Statute section 116C.779, subd. 1(d) to: increase the market penetration within the state of renewable electric energy resources at reasonable costs, promote the start-up, expansion and attraction of renewable electric energy projects and companies within the state, stimulate research and development within the state into renewable electric energy technologies and/ or develop near-commercial and demonstration scale renewable electric projects or nearcommercial and demonstration scale electric infrastructure delivery projects if those delivery projects enhance the delivery of renewable electric energy. The Project Manager and the Co-Principal Investigators will work together to set up a strict schedule of oversight for each selected project. Each project will be required to submit monthly progress reports. In addition, a site visit will be conducted for each project after the first 12 months of their project. The site visits will be conducted by the Co-Principal Investigators. This will ensure that project activity is compliant with the program objectives. 3.3 Research Evaluation and Validation All research proposals must contain a detailed statement enumerating project objectives. These project objectives should align with the primary goals for research identified in this document. For each task and sub-task, a one or two paragraph description must be provided to detail each task s purpose, approach, and expected outcomes. These paragraphs should include project milestones, where appropriate. If applicable, the tasks should be organized by the project phases/ budget periods that correspond to its major project milestones or go/no-go decision points. These descriptions, milestones, and go/no-go decision points will be used as the primary metric for evaluation and validation of the project. 3.4 Schedule 16
Renewable Development Fund for Minnesota Institutes of Higher Education Minnesota State Colleges and Universities The Minnesota State Colleges and Universities system proposes a three year schedule during which the MnSCU program team will complete two cycles of identifying and selecting campus-based projects. This will allow the greatest number of MnSCU colleges and universities to participate in the program. The schedule chart (Appendices C 1 and C 2) provides an outline of the three year schedule. Each proposed project will clearly identify key deliverables and proposed milestones. Upon execution of grant agreement with Xcel Energy, the MnSCU program team will disseminate two calls for research initiatives to all MnSCU colleges and universities. The second cycle may also be used to mature renewable technologies discouraged during the first cycle. Each round consists of the call for initiatives, review by peer review committee and merit committee and final selection. Each round is expected to take 90 days. It is anticipated that the first call would be announced by May 1, 2014 with selections made and intra-agency agreements in place by July 31, 2014. The second round would take place from October 2014-January 2015. Following a reimbursement model, the Project Manager will receive a Quarterly Activity Report and Quarterly Financial Report (Appendices D 3 and D 4) 30 days after the end of the previous quarter. This will ensure that key project deliverables and milestones are being met and that budget activity is consistent with proposed activity. At this time, the business office from the sub-granted institution will submit an invoice for the past quarters actual expenditures. Before payment can be made, the program director, with the guidance of the Principal Investigators must approve payment based upon satisfactory completion of the project activity. The above information will be compiled and a MnSCU Program Quarterly Report and Quarterly Financial Report will be submitted 45 days after the end of the previous quarter with an invoice to trigger payment. This will ensure that Xcel Energy RDF has the appropriate oversight of the funded projects and that research activity is meeting expectations. A meeting will be held with all sponsored key project personnel during the last quarter of 2015. This meeting will allow progress reports to be shared and an opportunity for discussion around such issues as: intellectual property, royalty sharing, research protocols, etc. 3.5 Reporting The reporting process will document progress and ensure transparency of the projects and expenditures. This documentation will facilitate the dissemination of information to a variety of audiences. The responsibility of reporting and dissemination of information will be shared by the subgrantees and MnSCU. Sub-grantee Responsibilities: Upon receiving a grant award, all sub-grantees will immediately submit a goal document with measureable outcomes, estimated expenditures, expected timelines and a disseminations plan. Each month they will provide brief summaries of their goal progress to the Project Manager. This will ensure the management team that the project is moving forward as expected and that 17
Renewable Development Fund for Minnesota Institutes of Higher Education Minnesota State Colleges and Universities expenditures are quantified and summarized in a timely manner. These frequent communications will also provide a way for the sub-grantee to notify MnSCU of any unexpected deviations from its original goals or from its planned timelines, expenditures, and/or disseminations. A more detailed, quarterly report must specify the progress of all sub-grantee goals and timelines. Itemized details of expenditures must be attached. The structure of these reports will include (1) a general summary of grant activities (2) expenditure details and updates (3) status updates on research goals, objectives and activities (4) timeline updates (5) summaries of applications and benefits (6) summaries of outreach and dissemination (7) whether any assistance is needed for special issues or for technical assistance (8) best practices and lessons learned and (9) potential or actual Intellectual Property created. All reports must be detailed, using the necessary scientific language to accurately articulate progress. MnSCU Responsibilities: MnSCU will use the information from these reports and frequent discussions with each subgrantee to draft management reports back to Xcel Energy. Management reports will detail the progress of each project. In addition, the MnSCU management team will report its monitoring progress in keeping projects focused and on schedule. The format of this report will be the same as that required of the sub-grantees. An executive summary will be attached to summarize project progress in a way that is understandable to a lay-person. Yearly, written reports, based on MnSCU s quarterly reports, will be submitted to Xcel Energy. In addition, the management team will deliver a presentation summarizing yearly progress. If necessary, sub-grantees will assist in these presentations. Project Results Dissemination: The sub-grantee will submit a dissemination plan for their project which may include, but is not limited to, presentations, papers, or marketing materials. In addition, MnSCU will use its partnerships and networks to disseminate information within and outside of the MnSCU System and the State of Minnesota. Some examples of systemwide supported dissemination include: o Bi-annual updates to the MnSCU Academic Affairs Council, which is made up of system office and campus administrators and faculty representatives. o Annual presentation to the the Minnesota Energy Consortium which serves as the industry advisory board to MnEC. At the conclusion of the program period, a capstone event will be held to showcase all funded projects and the research results. It will be an opportunity for key stakeholders, members of the energy industry and government officials to learn about the research conducted the impact of the RDF fund, and to engage in meaningful discussion with key researchers across the state. 18
Renewable Development Fund for Minnesota Institutes of Higher Education Minnesota State Colleges and Universities Finally, MnSCU will ensure that all reports, materials and presentations acknowledge that projects were funded by the Renewable Development Fund, financed by Xcel Energy ratepayers. 3.6 Intellectual Property Ownership of Intellectual Property MnSCU college and university ownership of intellectual property (IP) created with Xcel grant funds will be managed through Board of Trustee Policy 3.26 Intellectual Property and written agreements between the colleges/universities and their faculty members who will perform the research and create the IP. Board Policy 3.26 is consistent with the faculty labor agreements and IP law. The policy addresses both internal ownership by MnSCU colleges, universities, the system office, and employees, and with private sector companies and other stakeholders. The policy also addresses the commercialization of IP. Written agreements will be used to manage the expectations, responsibilities and IP ownership of all stakeholders participating in a research project. License to Xcel Energy MnSCU will grant to Xcel Energy a no-cost, perpetual, non-exclusive and non-restricted license to all intellectual property created with Xcel Energy grant funds. Intellectual property is defined as all patents, trademarks, copyrights and trade secrets created with Xcel Energy grant funds. A list of all IP assets covered by the license will be provided to Xcel Energy before the end of project or within a reasonable time after project ends. Sharing of Royalties A percentage of the net revenue generated by the commercialization of IP will be shared among the stakeholders participating in the project, including the RDF. The royalty percentage of each stakeholder will be determined by their contributions to the project. The RDF will be guaranteed a minimum of 10% royalties. The actual percentage amount will be determined in an equitable ratio based on the total amount of research funds and in-kind contributions, number of stakeholders participating in a given project, and other similar variables. Commercialization of Intellectual Property MnSCU will support commercialization of the IP through various business models which align with the type of IP created and its potential commercial value. MnSCU colleges and universities have several different business models available to commercialize IP. Each model seeks to strategically manage the unique circumstances and variables surrounding a specific IP asset. Business Model 1: MnSCU colleges and universities collaborate with local Minnesota companies that share an interest in the research topic. A company s expertise in the research topic, their knowledge in the specific industry and related industries compliments the efforts of the colleges or universities that have academic experts participating in the research project. Together, they combine their efforts and resources to perform the research, mature the project, and develop 19
Renewable Development Fund for Minnesota Institutes of Higher Education Minnesota State Colleges and Universities useful solutions to address the challenges and problems present in our society. The solutions usually take the form of commercially exploitable IP. In this business model, ownership of the intellectual property is negotiable and part of the written contract between the stakeholders. In some situations, ownership will be provided to the private sector company because they are in the best position to commercialize the IP. In return for the ownership of the IP and commercialization opportunities, the company promises a percent of future royalties generated from the commercialization of the IP to the college or university. This model allows the local company to pursue the commercialization opportunities, expand and grow their business, create jobs and hire Minnesotans, and stimulate the state s economy. The stakeholders in a research project would share future royalties, including the RFD in the ratios discussed above. Business Model 2: MnSCU colleges and universities directly license the IP to private sector businesses or other organizations for an annual fee. Multi-year licenses would be pursued when appropriate. Part of the annual licensing fee would be passed on to the RFD as a royalty based on an equitable ratio of stakeholders contributions. Business Model 3: MnSCU colleges and universities collaborate with companies located outside the state that possess a level of expertise that adds value to the research efforts. These companies are industry leaders on the topic or related field and bring a unique quality to the research project. Similar to Business model 1, they combine their efforts and resources to perform the research, mature the project, and develop useful solutions to the challenges and problems present in our society. Ownership of the IP is negotiable and the company(s) would license the IP or commercialize it themselves. The stakeholders in the research project would share future royalties, including the RFD in the ratios discussed above. Legal and Other Support for Project The research efforts of MnSCU colleges and universities are provided support from MnSCU s Office of General Counsel, the Minnesota Attorney General s Office, and other internal departments at MnSCU s system office. Legal support usually takes the form of legal counsel and advice, negotiating and drafting written agreements, state and federal legal and regulatory compliance, clarification on tax and finance issues, and other similar guidance. Pursuit of Protection for Intellectual Property Pursuit of all patents resulting from the project must be pursued through MnSCU s Office of General Counsel and the Minnesota Attorney General s Office. Upon identification of a potentially patentable invention, stakeholders are provided guidance on protecting potential patents by the Office of General Counsel and the System Director for Intellectual Property. MnSCU Policy 3.26, Part 6 Preservation of Intellectual Property Rights and Part 7 Commercialization of Intellectual Property provide guidance on the management and protection of IP while the corresponding procedure 3.26.1 Patent Inquiry Process 20
Renewable Development Fund for Minnesota Institutes of Higher Education Minnesota State Colleges and Universities provides a pathway to pursue potential patents associated with research projects. The procedure provides a step-by-step process which includes the Office of General Counsel working in harmony with the Attorney General s Office to appoint patent counsel for patent prosecution. Once an invention is identified as having potential patents, the process is triggered. The Attorney General s Office interviews various patent attorneys to determine which attorneys have work flows and subject-matter expertise to allow for timely prosecution of the patent application(s). Upon appointment, patent counsel provides advice to stakeholders on various issues such as informational disclosures, timing to file the application, record keeping of research documents and logs, potential publication of research, etc. The Patent counsel then prosecutes the patent application(s) while providing ongoing updates to General Counsel as to the status of the patent application. A Patent Assignment Agreement is used to assign patent ownership from employees to MnSCU and addresses the issue of payment of patent expenses. The Office of General Counsel controls the payment of patent related expenses on MnSCU behalf. For situations where ownership of the IP is allocated to a company-stakeholder involved in the research, a research agreement between MnSCU and the company-stakeholder is required and includes language that places the responsibility on the company to pursue potential patents resulting from the research project. The company-stakeholder is also responsible for all patent expenses. The research agreement provides a safeguard that allows MnSCU colleges, universities and the MnSCU system office to step in should the company withdraw from the prosecution of any patent application(s). Software Software-related IP may be patented or copyrighted depending on the nature of the software. The Office of General Counsel in consultation with Special Patent Counsel if necessary, will make this determination. If the software is patentable, then the process in the preceding paragraphs is followed. If the software is copyrightable only, then the System Director for Intellectual Property will assist the college or university that developed software in submitting a copyright application to the U.S. Copyright Office. Copyrights All copyrightable works with commercial value will be identified during the research project. These IP assets will be identified on the list of IP assets provided to Xcel Energy. The MnSCU college or university conducting the research, with assistance of the System Director for Intellectual Property, will submit copyright applications for identified works. The online submission process for copyright applications is both time efficient and cost effective. Third Party Rights in Newly Created IP All third party rights in newly-created IP will be fully addressed prior to the start of a project s research agreement between MnSCU and the third party. If a third party company-stakeholder seeks additional 21
Renewable Development Fund for Minnesota Institutes of Higher Education Minnesota State Colleges and Universities rights to newly-created IP, then the research agreement may be amended or a new contract may be entered by the parties. Third Party Rights in Pre-Existing IP All pre-existing IP that will be incorporated into a research project will be identified by the ownerstakeholder participating in the research. MnSCU will obtain the IP rights to this pre-existing IP through legally enforceable agreements as a condition for the stakeholder s participation in the research project. No grant funds will be used for the procurement of these third party IP rights. Any rights to pre-existing IP obtained by MnSCU will include a license for Xcel Energy s use. 3.7 Program Management The MnSCU grant program team is made up of four individuals with prior experience in developing, managing and executing grants. Resumes of program team members are included (Appendix E). Duane Carrow will oversee the selection, administration and reporting processes of this Block Grant. As the Director of MnEC, he is in the process of developing a statewide educational center to address the workforce development needs for Minnesota s energy industry. He has spent a lifetime studying, teaching and publishing work to promote renewable energy technologies. In the past 12 years, he has written or managed six large government renewable energy grants. Shannon Fiene Project Manager MnWest Business Office MnSCU system office Duane Carrow Program Manager Director, MnEC Matthew Julius Co-Principal Investigator MnSCU General Counsel Patrick Tebbe Co-Principal Investigator Figure 4: MnSCU Program Team Dr. Shannon Fiene will serve as the Project Manager for this Grant. She has her PhD in biomathematics and has extensive research experience. She recently managed a $1 million Department of Labor grant to address the need for energy technicians in Minnesota. Dr. Fiene will be responsible for adhering to the proposed schedule and timely reporting of all the projects within this Block Grant. The Co-Principal Investigators are Biology Professor Matthew Julius from St. Cloud State University and Professor Patrick Tebbe, Chair of the Department of Mechanical and Civil Engineering at Minnesota State University, Mankato. Professor Julius received his PhD in Natural Resources and the Environment from the University of Michigan. He has participated in the production and writing of 29 grants and has presented numerous publications, lectures and workshops. Professor Tebbe earned his PhD at the University of Missouri in Mechanical Engineering. He has produced 17 professional grants and he, too, has been involved in a large number of publications, lectures and workshops. 22