Heat Recovery Project Development Program - Category 3

Description of goods to services to be bid:

Category 3: Heat Recovery Demonstration introduces implementation funding for heat recovery projects which feature solutions that are replicable and impactful in existing buildings in New York State. This assistance aims to validate the feasibility and effectiveness of heat recovery solutions that can provide substantial benefits in terms of the amount of energy recovered and reused, emissions reduced, and economics of the project. Implementation funding will be competitively awarded to heat recovery projects that meet PON 5547 requirements and can begin construction within 1 year from the time of award. NYSERDA will award up to $2,000,000 of implementation cost-share for each selected project.

Heat recovery projects that include the following solutions are eligible to apply:
Data Center Heat Recovery: A solution that recovers and reuses waste heat from data center operations, resulting in lower utility energy demands, such as using heat exchange systems or novel waste heat-to-power conversion methods.
High Temperature Heat Pumps: A solution that leverages waste heat recovery with commercially available high-temperature heat pumps to meet process heating requirements of up to 150°C/302°F, which results in improved process energy efficiency.
Packaged Exhaust Heat Recovery: A high-efficacy packaged wastewater or ventilation heat recovery solution without the complexity and costs of onsite stick-built heat exchangers.
Thermal Storage: A solution that allows heat to be recovered at one point in time and used at another, helping to downsize heating and cooling load and provide grid services. Targeted solutions, such as phase change material (PCM) will provide a higher energy density than water and ice. Water and ice storage systems will be considered where the system is planned for small commercial buildings, hospitals, and industrial facilities or to lower overall energy costs for tenants in Affordable Multifamily Housing.

Through Category 3, NYSERDA seeks projects that demonstrate the impact, scalability, and economic viability of at least one of these four heat recovery solutions. Proposals must include a Basis of Design (BOD) narrative and/or one-line concept diagrams with essential details to reasonably validate feasibility, procurement budgeting and construction timeline. Proposers must have completed due diligence, such as an opportunity assessment or equivalent study, before applying.

Category 3 will be open to all existing buildings, except for single family homes, in New York State. Special consideration will be provided for projects benefiting disadvantaged communities as defined by the Climate Justice Working Group.
Proposals will compete based on the following criteria:
• Impact – The proposal demonstrates impact in the form of energy savings, emissions reductions, and reuse of waste heat. The Project Team has the capacity and expertise needed to implement the proposal.
• Scalability – The proposal demonstrates that the heat recovery solution has a strong potential for widespread adoption within the proposer’s portfolio or by the broader market.
• Cost Effectiveness – The proposal examines the costs and benefits of the project in terms of total investment relative to the energy and carbon intensity improvements. The Project Team demonstrates commitment by providing private investment.
Proposal Due Dates for Category 3:
- Round 1 Proposals due Thursday, November 7, 2024 by 3:00 PM ET.
- Round 2 Proposals due Thursday May 1, 2025 by 3:00 PM ET.
- Round 3 Proposals due Thursday October 30, 2025 by 3:00 PM ET.

Modification 1, February 2025: A modification (substantive change) to the Heat Recovery Project Development PON 5547 to:

1) Add $4,500,000 of RGGI funding; Page 6 of Program Summary, under Eligible Buildings header:
• Remove: “Participating buildings must be located in New York State, served by a New York State Investor-Owned Electric Utility (such as Consolidated Edison, National Grid, NYSEG, Orange and Rockland, Central Hudson, or RG&E), and pay electric System Benefits Charges (SBC). An existing Property of any size that falls under the classification of commercial, industrial, institutional, manufacturing and/or multifamily is eligible. New construction projects and single-family buildings are not eligible for this Program,”
• Add: “An existing Property of any size that is located in New York State and that falls under the classification of commercial, industrial, institutional, manufacturing and/or multifamily is eligible. New construction projects and single-family buildings are not eligible for this Program. This solicitation has funding to support Projects statewide, including end-use Customers who pay the System Benefits Charge (SBC) and end-use Customers who do not pay the System Benefits Charge. Clean Energy Fund (CEF) funding can only be awarded to Projects that serve end-use Customers who pay the SBC on either a portion of or on their entire electric bill at the Property.”

2) Page 1 of Program Summary, update funding from $12,000,000 to $27,000,000.

3) Set the Round 2 due date, Page 1 of Program Summary, under Category 3:
Add: “Round 2 Proposals due June 3, 2025 by 3:00 PM ET.

4) Pages 2, 19, 20 of Program Summary where application instructions for Categories 1,2,4 are given:
• Replace “SeamlessDocs” with “JotForm”
• Replace the hyperlink “https://nyserda.seamlessdocs.com/f/HeatRecovery” with “https://nyserda.jotform.com/team/operations/HeatRecovery”

5) Add a cost-share minimum from Project Teams for Category 3:
Page 2 of Program Summary, Funding table:
• Remove “Not specified, see Proposal Evaluation Criteria”
• Add “Up to 50% OR Up to 75% for Projects located in disadvantaged Communities or consisting of Affordable Multifamily Housing”
Page 10 of Program Summary, Category 3: Heat Recovery Demonstration Requirements:
• Add: “Proposals may receive up to $2,000,000 to implement eligible heat recovery Projects. Cost-share from the Project Team is a requirement for Category 3 Projects submitted after Round 1. For Projects located in Disadvantaged Communities or consisting of Affordable Multifamily Housing, the Project Team must contribute a minimum of 25% of the total Project cost. For all other Projects, the Project Team must contribute a minimum of 50% of the total Project cost.”
Page 17 of Program Summary, Funding Caps, Category 3:
• Add: “For Projects located in disadvantaged communities or consisting of Affordable Multifamily Housing, the Program will provide cost-share for up to 75% of eligible costs (the Project Team must contribute a minimum of 25% of the total Project cost). For all other Projects, the Program will provide cost-share for up to 50% of eligible costs (the Project Team must contribute a minimum of 50% of the total Project cost).”

6) Pages 10-14 of Program Summary, redefine Category 3 Eligible Projects:
• Remove “A proposed Project must incorporate at least one of the following heat recovery solutions:”
• Add “A Project must improve the energy performance of the Property by capturing rejected energy from an existing building system or process and reusing the energy to reduce total energy consumption. The captured energy can be stored before being reused within the Project boundary. The Project must propose a Heat Recovery Design consisting of the following four (4) components: waste heat source, heat transfer technology, transfer medium, and heat sink (the end-use of the recovered waste heat). A Project must propose an innovative heat recovery solution. An innovative solution is a method or technology that challenges or outperforms conventional approaches, prioritizing forward-thinking designs over standard, code-compliant, and widely adopted practices in NYS. An example of a standard code-compliant practice is the installation of Dedicated Outdoor Air Systems (DOAS) as Makeup Air Units (MAUs). Proposals should include technologies that are not already widely adopted in NYS, well-known to engineers and building operators, or mandated by existing codes. The technologies proposed should achieve a level of heat recovery efficacy that exceeds commonly available solutions. The Program encourages proposals that demonstrate a wide variety of heat recovery technologies, sources of waste heat, and end uses for the recovered waste heat. Below are four examples of innovative heat recovery solutions with the potential for impact and replicability in existing buildings in NYS. Eligible Category 3 Projects include, but are not limited to, the following:”
• Better describe the Proposal Evaluation Criteria:
o Remove the tables describing impact, scalability and cost-effectiveness
o Add the Proposal Evaluation Criteria from the Scoring Sheet that will be used to evaluate Round 2 proposals.

7) The change to the Category 1 and Category 2 Scope of Work templates does not require a change in the Program Summary document, they are attachments to the Program:
• Attachment C - Category 1 Scope of Work Template [DOCX]
o Under Task 2 Assessment, add the language “The Contractor shall host a virtual or in-person charrette (a collaborative design session) to present the Assessment Summary to the Customer and NYSERDA. The charrette shall be scheduled in coordination with NYSERDA and include representation from the Customer. The purpose of this meeting shall be to support the Contractor’s design development activities and explore technical and financial solutions to potential heat recovery projects. The Contractor shall use the Assessment Summary to lead discussion during the design charrette.” No new deliverables added based on this language because the Assessment Summary will be the deliverable.
• Attachment D - Category 2 Scope of Work Template [DOCX]
o Change Task 1 Design Charrette to Task 1 Project Design Kickoff. Change Task 1 deliverable from “Completed Design Charrette slide deck” to “Record of the meeting through meeting minutes or powerpoint presentation.”
o Link the Attachment E - Project Design Narrative Template and Attachment F - Data Collection Form where referenced so that Contractor knows what templates to use for these deliverables.

8) The changes to the Category 3 Proposal Template (Attachment C-1) and Category 3 Budget Template (Attachment B) do not require a change in the Program Summary document, since they are attachments.
• Attachment C-1 – Category 3 Proposal Template, add “Project Cover Page” to collect high-level project information.
• Category 3 Budget Template (Attachment B), modify instructions to match those in the Program Summary, “Complete the Budget Template below or equivalent. The Applicant must provide a Budget broken down by individual line-items by task for materials, labor (edit personnel title and hourly rate), and other costs.”

If changes are made to this solicitation notification will be posted on NYSERDA’s website at:
www.nyserda.ny.gov/funding-opportunities

Eligibility/Qualifications Requirements/Preferences:

An existing Property of any size that is located in New York State and that falls under the classification of commercial, industrial, institutional, manufacturing and/or multifamily is eligible. New construction projects and single-family buildings are not eligible for this Program. This solicitation has funding to support Projects statewide, including end-use Customers who pay the System Benefits Charge (SBC) and end-use Customers who do not pay the System Benefits Charge. Clean Energy Fund (CEF) funding can only be awarded to Projects that serve end-use Customers who pay the SBC on either a portion of or on their entire electric bill at the Property