Advanced Energy Program Fuel Cell Program Photovoltaic Program

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Advanced Energy ProgramFuel Cell
ProgramPhotovoltaic Program

• FY 2010 Bidders ConferenceAugust 14, 2009

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Agenda

• Welcome and Introductions
• Ohio Third Frontier
• Commercialization Framework
• Ohio Third Frontier Advanced Energy Program
  (OTFAEP)Ohio Third Frontier Fuel Cell Program
  (OTFFCP)Ohio Third Frontier Photovoltaic Program
  (OTFFCP)
• Q A
• Closing Remarks

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Ohio Third Frontier

• Background
• The Ohio Third Frontier was initiated in February
  2002 and, with a commitment of 1.6 billion, is
  the state's largest-ever economic development
  initiative.
• Ohios investment has leveraged 4.1 billion in
  additional investments from the private sector
  and federal government.
• Program investments have helped to create 598 new
  companies, and more than 8,500 new jobs.

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Ohio Third Frontier

• Vision
• To establish, in targeted areas of technology,
  regional and statewide clusters of excellence
  that sustain our global competitive advantage in
  company and product formation, job creation and
  economic growth.

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Ohio Third Frontier

• Objectives
• Guided by a focus on Ohio research and
  industrial strengths
• Increase the quantity of high quality research
  that has commercial relevance to Ohio companies
• Expand access and availability of investment
  capital to create, grow and attract
  technology-based enterprises
• Grow and nurture entrepreneurial management
  talent supported by organized systems of services
  and networking
• Address the technical needs of existing companies
  pursuing new products and production processes
• Contribute to the expansion of a technologically
  proficient workforce.

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Ohio Third Frontier

• Focus Areas
• Based on a 2002 study by Battelle and revised by
  the Ohio Third Frontier Commission in 2008, the
  Ohio Third Frontier embraces five technology
  focus areas
• Biomedical
• Advanced/Alternative Energy
• Instruments, Controls, Electronics
• Advanced Materials
• Advanced Propulsion

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Ohio Third Frontier FY2010 Programs

• Wright Projects
• R D Center Attraction (New)
• ESP Success /Pre-Seed Follow-on Funds (Modified)
• Advanced Energy Program
• Fuel Cell Program
• Photovoltaic Program (New)
• Medical Imaging Program (New)
• Biomedical Program (New)
• Advanced Material Program (New)
• Sensors Program (New)
• Targeted Industry Attraction Grants
• Third Frontier Internship Program

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Ohio Third FrontierInvestment Highlights

• Statewide Entrepreneurial Signature Program (ESP)
  established and organized around 6 regional
  networks
• 46 pre-seed and seed funds capitalized
• 13 Wright Centers of Innovation (including on
  Mega-Center) established
• Endowments for 26 Ohio Research Scholars
• More than 80 advanced energy projects supporting
  the growth of the fuel cell and photovoltaic
  clusters
• 3,000 STEM interns placed in over 700 companies

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Commercialization Framework
OTF Cluster Programs
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Ohio Third Frontier Advanced Energy Program,Ohio
Third Frontier Fuel Cell ProgramOhio Third
Frontier Photovoltaic Program

• Fiscal Year 2010

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Program Goal

• To accelerate the development and growth of the
  fuel cell, advanced energy and photovoltaic
  industries in Ohio and their supply chains by
  direct financial support to organizations seeking
  to
• Commercialize new products, manufacturing
  processes or technologies
• Adapt or modify existing components or systems
  that can reduce the cost and improve the
  efficiency of the energy system
• Demonstrate the market-readiness of a technology
  through a commercially-oriented project that
  maximizes incorporation of Ohio components and
  are operating under final use conditions.

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Program Objectives

• To help Ohio companies achieve cost and
  performance standards that ultimate end-users of
  fuel cell, advanced energy and photovoltaic
  technologies define as necessary for successful
  commercial applications
• To support development of fuel cell, advanced
  energy and photovoltaic technologies that will
  result in the opportunity for significant
  employment in Ohio within 3 to 5 years of
  completing the project
• To help Ohio companies secure additional
  financial resources needed to commercialize their
  fuel cell, advanced energy and photovoltaic
  related products, processes, components, and
  systems and
• To move fuel cell, advanced energy and
  photovoltaic related products, manufacturing
  processes, components, and systems to a point in
  the commercialization process where the applicant
  is ready to demonstrate a commercial prototype or
  actually enter the market with a product

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Eligible Purposes

• The OTF will fund grant applications that focus
  on the following types of projects
• Developing and commercializing new products,
  manufacturing processes, or technologies that can
  reduce the cost and improve the efficiency of
  fuel cell, advanced energy and photovoltaic
  technologies or systems or address technical
  commercialization barriers.
• Adapting or modifying components or systems that
  are produced in Ohio for use in sensors that can
  reduce the cost or improve the efficiency of fuel
  cell, advanced energy and photovoltaic
  technologies or address technical or
  commercialization barriers.
• Commercially oriented demonstration projects in
  Ohio of fuel cell, advanced energy and
  photovoltaic related technologies that maximize
  incorporation of Ohio components and are
  operating under final use conditions. Please
  note that proof of principle and bench scale
  demonstrations are not considered to be
  commercial demonstrations.
• The OTF will not fund the construction or
  operation of production scale facilities.

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Technology Preferences

• Fuel Cell Program
• Preference for competitive fuel cell
  technologies, unique components, and balance of
  plant.
• Competitive fuel cell technologies are those that
  can be shown to meet or exceed technical and cost
  standards emanating from end users of fuel cells,
  the U.S. Department of Energy research,
  development, and policy work, and other
  recognized national and international
  associations dedicated to the fuel cell industry.
• Photovoltaic Program
• Technology neutral with respect to the various
  photovoltaic technologies.
• Advanced Energy Program
• Preference for wind, biomass and energy storage
  technologies.
• Preference is for work to be done within 2 years
  and not more than 3

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Eligible Lead Applicants

• Lead Applicant must be based in Ohio or have a
  principal place of business in Ohio, or be an
  out-of-state for-profit company that pledges to
  locate a principle place of business within Ohio
  as a pre-condition to award.
• A substantial portion of the project activity and
  the benefit from the project must occur in Ohio
• Must be a collaborative effort where either the
  Lead Applicant or one collaborator must be a
  for-profit company, but must be comprised of, in
  any mix, two or more independent firms, higher
  education institutions, or eligible
  not-for-profit or government research
  institutions.

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Funding

• In FY10, Development anticipates awarding up to
  the following amounts for each program
• Fuel Cell Program 10 million
• 8 million Third Frontier Research and
  Development (TFRD) 2 million Wright Capital
  Fund (WCF)
• Photovoltaic Program 10 million
• 8 million TFRD 2 million WCF
• Advanced Energy Program 7 million
• 5 million TFRD 2 million WCF

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Funding

• There are no restrictions of the use of Third
  Frontier Research and Development funds (i.e. may
  be used for operating or capital purposes) or on
  the eligibility of organizations to receive these
  funds.
• Wright Capital Funds requested for any one
  proposal may not exceed the total WCF available.
• WCF must be used solely to acquire, renovate, or
  construct facilities and purchase equipment that
  is part of property of facilities owned by an
  Ohio State-supported or state-assisted
  institution of higher education or by a
  non-profit corporation or a public body that
  provides access and use of facilities or
  equipment to a collaborating Ohio State-supported
  or state-assisted institution of higher
  education.
• Not more than 20 percent of the total direct
  state grant funds requested may be budgeted for
  indirect costs.
• Un-recovered indirect costs are an allowable form
  of cost share.

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Cost Share

• Must be one dollar or more for every one dollar
  of State Grant Funds requested (i.e., a ratio of
  11).
• Preference will be given to proposals that pledge
  cost share as discretionary, unrestricted, and
  unallocated cash. Such cash must appear on the
  financial records of the Lead Applicant.
• Must be documented on the budget forms, in the
  budget narrative, and in a letter from each
  organization contributing cost share signed by a
  representative authorized to commit the
  organization to the proposed project and the cost
  share described.
• Must represent a specific new commitment to the
  project described in the proposal.
• Must be allowable costs that are verifiable and
  auditable and consistent with the cost share
  guidelines.

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Cost Share

• Resources that have been designated as cost share
  for some other award cannot be used as cost share
  for an Ohio Third Frontier award.
• Cost share must be applied to the project during
  the project period.
• If an organization has a published indirect cost
  rate, un-recovered indirect costs (the difference
  between 20 and the published rate) may be used
  as cost share.
• - If the lead applicant does not have a federally
  negotiated and approved indirect cost rate
  agreement, then the lead applicant is limited to
  using 20 percent of its cost shared direct costs
  as cost shared indirect costs and no other
  un-recovered indirect costs from the operating
  budget may be claimed.
• OTF funding may not be used as cost share, and
  funds awarded under this RFP may not be used as
  cost share against other Third Frontier projects.
• Lead applicant will be held to the cost share
  ratio proposed.

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Proposal Evaluation Criteria

• The following criteria have been designated with
  the highest relevance to and weighting for the
  OTFAEP, OTFFCP, and OTFPVP
• Level of Scientific Merit
• Alignment of the Proposal with the goals of
  Section 2.2 and Section 3 of the RFPs
• Quality of responses to the requirements of the
  RFPs as outlined in sections 3.3.6 through 3.3.12
  of the RFPs.
• Compliance with the RFPs
• Past Performance (if applicable)

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Proposal Evaluation Criteria

• 3.3.6 Technical Plan
• 3.3.7 Commercialization Strategy
• 3.3.8 Performance Goals
• 3.3.9 Performance on Prior OTF Awards
• 3.3.10 Experience and Qualifications
• 3.3.11 Budget
• 3.3.12 Collaborator Information/Letters of
  Commitment

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Review Process

• Administrative Review
• Third Frontier Commission staff
• Receive and process proposals for administrative
  compliance
• Forward to external evaluators for technical
  review
• Technical Review
• External evaluators
• Technical and commercial review
• Establish a competitive range
• Second stage review
• Rank proposals
• Compile recommendations
• Submit recommendations and summary evaluation
  statements to Third Frontier Commission

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Review Process

• In addition to the external review, Development
  may review applications to assess
• Past performance of Lead Applicant and its team
• Proposals strategic fit with prior Third
  Frontier investments, other State investments,
  Developments strategies, and the Ohio Board of
  Regents strategies and
• Factual business intelligence relevant to
  describing the Ohio economic development
  opportunity.
• The results of such review will be presented to
  the OTFC for its consideration.

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Timeline

• July 31, 2009 RFP Released
• August 25, 2009 by 200 PM LOI due
• September 18, 2009 by 200 PM Proposals due
• September December 2009 Review Process
• Approximately December 2009 Award Announcements

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Exceptional Opportunity Funding

• If the Lead Applicant believes they have an
  exceptional opportunity, fitting the intent of
  the specific OTF program, but requiring
  significantly higher funding than the RFP allows,
  then the Lead Applicant may also submit a white
  paper that describes
• the additional dimensions of the project
• the uses for the larger amount of funding
  requested
• and a clear justification for why the expanded
  scope represents an exceptional economic
  development opportunity for Ohio.
• Note The core proposal must stand alone and not
  depend on the exceptional opportunity white paper
  to achieve the benefits required for a successful
  project.

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Exceptional Opportunity Funding

• The white paper should consist of a narrative not
  to exceed five (5) pages, supplemental budget
  forms and a schedule of activities. The white
  paper must include the title of the core proposal
  and the proposal number assigned by Development.
• The supplemental award request must be for no
  less than 1 million in additional support. The
  request for additional funds is subject to the
  11 cost share requirement.
• If the Lead Applicants core project is ranked
  high enough by the external evaluators to be
  recommended for funding, the white paper will be
  evaluated and presented to the OTFC.  At its
  discretion, the OTFC may request additional due
  diligence be undertaken that will include
  submitting a more complete proposal for the
  additional funding.  Final decisions on
  supplemental awards will occur at the end of the
  FY 2010 program year.

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Policy Administrative Questions

• All questions must be submitted via email
• Email OTFFCP2010_at_development.ohio.gov
  OTFAEP2010_at_development.ohio.gov OTFPVP2010_at_de
  velopment.ohio.gov
• Frequently asked questions will be posted on the
  Third Frontier web site www.thirdfrontier.com

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Important Changes Updates

• Cost Share 11
• Fuel cell proposals are not eligible to compete
  in the OTFAEP RFP.
• Development reserves the right to redirect
  proposals between the OTFFCP, OTFAEP OTFPVP
  based upon the LOI or the Proposal itself.
• Be sure to use the current versions of the
  proposal and application forms.
• All three RFPs were modified on August 11, 2009

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RFP Modifications Clarifications

• From time to time, it may be necessary to modify
  or clarify portions of the RFP, as well as the
  forms. In that event, we will post a document
  titled RFP Modifications and Clarifications to
  the RFP page for the particular program on the
  Third Frontier website. The document will have
  an explanation of any changes.
• It is your responsibility to be aware of any RFP
  modifications and to ensure that your proposal
  conforms with any such modifications.

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Things to Avoid

• Collaborations
• Failure to consider/involve OTF grantees when it
  makes sense
• Involving OTF grantees when it doesnt add value
• Window dressing and a cast of thousands
• Hollow letters of support

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Things to Avoid

• Cost Sharing
• Not viewing Cost Share as a true half of the
  whole
• Not addressing Cost Share specifics in the budget
  narrative
• Missing letters of commitment
• Bait switch
• The ratio you propose is the ratio we hold you to

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Things to Avoid

• Commercialization / Market
• Over/under estimating your position in the
  framework
• Proposing a program in its infancy
• Not acknowledging the competition
• Not considering/involving end users, suppliers,
  manufacturers
• Not being industry driven, omitting industrial
  leaders
• IP boilerplate, or any boilerplate used in your
  proposal
• Unrealistic impacts

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Things to Avoid

• Administrative Issues
• Late proposals
• Ignoring page limitations
• More than 5 key personnel
• Claiming everything as proprietary information
• Appending material

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Questions?