Item 8: Climate Change Research Program September 25, 2018

1. Item 8: Climate Change Research ProgramSeptember 25, 2018

2. Recommended Actions • Approve and adopt amendments to the Climate Change Research Program’s Research Investment Plan and approve its use to guide future research investments. • Approve framework for Round 2 of the Climate Change Research Program and direct staff to develop a Request for Proposals.

3. Climate Change Research Program • Competitive Grant Program funded through the California Climate Investments Program • Supports research on reducing carbon emissions that emphasizes California and may include: • Clean energy • Adaptation and resiliency • Round 1: $10.5 million • Round 2: $17.1 million

4. Research Investment Plan Update

5. Amendments to the Research Investment Plan • Maintain core elements of the Research Program • Program Goals – addressed as part of threshold requirement • Research Priority Areas • Addition of a new grant type • Expanding institutional eligibility • Other adjustments

6. Amendments to the Research Investment Plan • Maintain core elements of the Research Program • Program Goals – addressed as part of threshold requirement • Research Priority Areas • Addition of a new grant type • Expanding institutional eligibility • Other adjustments

7. Program Goals (1 – 4) • Invest in research that has a clear and demonstrated connection to the State’s climate change goals, including greenhouse gas emission reduction and climate change adaptation and resilience • Advance research to support low-income and disadvantaged communities, and advance equitable outcomes in the implementation of the State’s climate change policies and investment • Develop a research program that augments, builds connections, and fills gaps across current State research programs • Prioritize outcome-based research linked to practical climate action

8. Program Goals (5 – 7) • Model meaningful engagement with the research community, community-based organizations and other stakeholders at all stages of the program to ensure relevance and utility of research process, projects, and results • Continue to advance and develop a common research platform to support climate change planning, policy development, and implementation across all sectors at the state, regional, and community scale • Leverage and complement existing research funding and policy innovations to accelerate climate change research, innovation, and policy and technology deployment

9. Research Priority Areas • Supporting and Protecting Vulnerable Communities from the Impacts of Climate Change • Accelerating and Supporting Transitions to Climate Smart Communities • Integrating Land Use, Conservation, and Management in California Climate Change Programs • Increasing Data Accessibility Planning and Support for State, Local, and Regional Climate Change Planning • Low-GHG Transformative Technology Development and Deployment

10. Amendments to the Research Investment Plan • Maintain core elements of the Research Program • Program Goals – addressed as part of threshold requirement • Research Priority Areas • Addition of a new grant type • Expanding institutional eligibility • Other adjustments

11. Innovation Center Research Grants Page 6 of Amended Research Investment Plan “Innovation Center Research Grants will be awarded to established R&D divisions within a Research Institution to develop transformative, scalable clean technologies specified in a program solicitation that are widely seen as necessary to achieve the State’s 2030 and 2050 greenhouse gas reduction targets but require significant breakthroughs to achieve market penetration…”

12. Amendments to the Research Investment Plan • Maintain core elements of the Research Program • Program Goals – addressed as part of threshold requirement • Research Priority Areas • Addition of a new grant type • Expanding institutional eligibility • Other adjustments

13. Eligible Institutions Page 7 of Research Investment Plan The lead applicant on each proposal must be affiliated with one of the following institutions: • University of California, • California State University, • Federally-funded national laboratories, and • Private, non-profit colleges and universities or research institutions located in California

14. Amendments to the Research Investment Plan • Maintain core elements of the Research Program • Program Goals – addressed as part of threshold requirement • Research Priority Areas • Addition of a new grant type • Expanding institutional eligibility • Other adjustments

15. Other Amendments • Program timeline: Linked to funding appropriation legislation • Review process: Maintain two phase review • Indirect cost rate: Maintain maximum of 25% • Application instructions: Given in solicitation

16. Research Priority Areas • Supporting and Protecting Vulnerable Communities from the Impacts of Climate Change • Accelerating and Supporting Transitions to Climate Smart Communities • Integrating Land Use, Conservation, and Management in California Climate Change Programs • Increasing Data Accessibility Planning and Support for State, Local, and Regional Climate Change Planning • Low-GHG Transformative Technology Development and Deployment

17. Research Investment Plan Update

18. Round 2 Research Solicitation

19. Climate Change Research Program—Round 2 • 2018-19 budget allocated $18 million to SGC for round 2 of the research program • $17.1 million available through competitive Grant Program funded by California Climate Investments Program • Focused on research priority area #5 of the Research Investment Plan

20. California Climate Change Technology and Solutions Initiative • Advances the development and deployment of transformative clean technology to reduce GHG emissions • Achieves GHG emission reductions • Supports development of advanced climate research partnerships and initiatives

21. California Climate Change Technology and Solutions Initiative Objectives • Investments should demonstrate potential to significantly reduce GHG emissions and should show potential to be easily replicable and scalable • Awardees’ projects or portfolio of projects should provide a holistic approach towards addressing one or more of the identified research areas • Institutions should build strong and meaningful partnerships with the research and academic communities, private sector, and community-based organizations • Institutions should ensure that innovative technologies have direct and indirect benefits to California’s most disadvantaged communities

22. Outreach Process • Staff held over 40 focused meetings with stakeholders, including: • State agencies • Researchers • Start-ups • Community-based organizations • Other non-governmental organizations • Analyzed ways to maximize impact of these funds by identifying current research gaps, areas of opportunity, near term needs to advance promising climate solutions

23. Research Area: Carbon Dioxide Removal • Fourth California Climate Change Assessment demonstrates need for rapid reduction of greenhouse gas accumulation in the atmosphere • Carbon Dioxide Removal (CDR) technologies permanently remove from the atmosphere through various processes • Engineered solutions such as direct air capture • Natural system solutions such as forest and soil management • Outreach identified this field as burgeoning, early stage R&D but in need of much greater investment

24. Research Area: Methane Reduction • Methane has a Global Warming Potential of 25 • 25 times more potent than as greenhouse gas • Significant reduction in methane emissions must occur for California to achieve its 2030 and 2050 climate goals • Methane is roughly 9% of California’s total emissions • Three biggest sources of methane emission: • Agriculture—55% • Industry—20% • Landfills—21%

25. Research Area: Heating, Cooling, and Thermal Storage Systems • Heating and cooling places stress on electrical grid and will continue to do so as extreme weather events continue to become worse and more common • Additionally, cooling systems often use Hydrofluorocarbons, potent greenhouse gases with a GWP up to 1,430 • Outreach identified significant opportunities to invest in cleaner and more efficient heating and cooling systems • At the core of SGC’s mission of sustainable and resilient communities—cleaner systems promote climate adaptation and mitigation

26. Round 2 Program Structure • 3-4 grant awards of $3-5 million • Eligible applicants: • University of California • California State University • Private, non-profit universities • Federally-funded research labs • Private, non-profit research institutions • Allow for public-private partnerships • 2 step review process • Advisory committee made up of external experts • Interagency committee made up of representatives from the Council’s agencies

27. Round 2 Timeline

28. Recommended Action • Approve and adopt amendments to the Climate Change Research Program’s Research Investment Plan and approve its use to guide future research investments. • Approve framework for Round 2 of the Climate Change Research Program and direct staff to develop a Request for Proposals.