DAR File No. 41096

This rule was published in the January 1, 2017, issue (Vol. 2017, No. 1) of the Utah State Bulletin.


Science Technology and Research Governing Auth., Administration

Rule R856-5

USTAR Energy Research Triangle Professors Grant

Notice of Proposed Rule

(New Rule)

DAR File No.: 41096
Filed: 12/14/2016 06:39:02 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

This rule is a result of S.B. 166 from the 2016 General Session, now codified in Utah Code Title 63M, Chapter 2. Subsection 63M-2-503(2), which requires the Utah Science Technology and Research (USTAR) Initiative to create rules governing all USTAR grant programs. This rule is for one of USTAR's new grant programs, the USTAR Energy Research Triangle Professors Grant. This rule establishes the eligibility and reporting criteria for an entity to receive a grant under Section 63M-2-503 including: 1) the form and process of submitting a grant application; 2) which entities are eligible to apply for a USTAR Energy Research Triangle Professors Grant; 3) specific categories of projects that are eligible; 4) the criteria for awarding grants and determining grant amounts; and 5) the reporting requirements of grant recipients.

Summary of the rule or change:

This rule establishes the USTAR Energy Research Triangle Professors grant program is a collaborative effort between USTAR and the Utah Governor's Office of Energy Development (GOED) and will be administered according to this rule. Grants provide funding for projects in which research teams from at least three Utah non-profit higher education institutions collaborate to address energy related technical challenges important to economic growth in the state of Utah. Anticipated duration of projects will be 12 to 18 months. Funding must be budgeted by state fiscal year (July 1 through June 30) and funding will be dependent on meeting milestones and continued USTAR/GOED appropriation.

Statutory or constitutional authorization for this rule:

  • Subsection 63M-2-302(h)

Anticipated cost or savings to:

the state budget:

None--Although this is a new program, it's funded by appropriations that have already been allocated to USTAR for these purposes.

local governments:

None--Only universities can apply for these grants. Therefore, local government entities are not affected by this rule.

small businesses:

None--Only universities can apply for these grants. It is anticipated that small businesses will benefit from the research of universities that receive this grant, since the grant is established to create economic growth in Utah. However, USTAR is unable to estimate any fiscal benefit for small businesses as a result of this rule, because the impact is indirect and will vary depending on circumstance.

persons other than small businesses, businesses, or local governmental entities:

None--Only universities can apply for these grants. Therefore, persons other than small business are not affected by this rule.

Compliance costs for affected persons:

If successful in winning a grant, awardees will be required to report data for at least five years subsequent at approximately an hour/year of effort. USTAR is unable to estimate the exact cost, since it will vary given the pay of the individual conducting the reporting.

Comments by the department head on the fiscal impact the rule may have on businesses:

None--Only universities can apply for these grants. Therefore, businesses are not affected by this rule. It is anticipated that businesses will likely benefit from the research of universities that receive this grant since the grant is established to create economic growth in Utah. However, USTAR is unable to estimate any fiscal benefit for small businesses as a result of this rule, because the impact is indirect and will vary depending on circumstance.

Ivy Estabrooke, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Office of Administrative Rules, or at:

Science Technology and Research Governing Auth.
Administration
60 E NORTH TEMPLE 3RD FLR
SALT LAKE CITY, UT 84111

Direct questions regarding this rule to:

  • Thom Williams at the above address, by phone at 801-538-8633, by FAX at , or by Internet E-mail at thomwilliams@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

01/31/2017

This rule may become effective on:

02/07/2017

Authorized by:

Ivy Estabrooke, Executive Director

RULE TEXT

R856. Science Technology and Research Governing Authority (Utah), Administration.

R856-5. USTAR Energy Research Triangle Professors Grant.

R856-5-1. Authority.

Subsection 63M-2-503(2) requires the USTAR governing authority to make rules describing the purpose, eligibility criteria, award process, and reporting requirements for each grant program administered by USTAR.

 

R856-5-2. Purpose and Goals.

(1) The USTAR Energy Research Triangle Professors grant program is a collaborative effort between USTAR and The Utah Governor's Office of Energy Development and will be administered according to these rules.

(2) Grants provide funding for projects in which research teams from at least 3 Utah non-profit higher education institutions collaborate to address energy related technical challenges important to economic growth in the state of Utah.

(3) Anticipated duration of projects will be 12-18 months. Funding must be budgeted by State fiscal year (1JUL-30JUN) and funding will be dependent on meeting milestones and continued USTAR/OED appropriation.

 

R856-5-3. Definitions.

(1) "Applicant" means the research team for a particular project.

(2) "Awardee(s)" means a project that has been awarded an Energy Research Triangle - Professor grant.

(3) "Commercialization plan" means the strategy or process by which a researcher or research team will introduce a technology into the market.

(4) "ERT-P" and "ERT-P grant" mean the Energy Research Triangle - Professor grant program, a competitive grant program administered by USTAR.

(5) "Governing authority" means the Utah Science, Technology and Research Governing Authority.

(6) "Lead university" is defined as the university which applies for ERT-P funding and is the principal contact between USTAR and the research team.

(7) "OED" means the Utah Governor's Office of Energy Development.

(8) "Technology" includes applications of scientific research such as inventions, methods, processes, or other material, virtual, or intellectual property.

(9) Technology Readiness Level" or "TRL" level means the characterization of the maturity of the technology used by the federal government (http://ustar.org/our-programs/tap-technology-acceleration-program/tap-technology-readiness-levels/).

(10) "University" means any college, university, or other public or not-for-profit higher education institution with it's primary location in Utah.

(11) "USTAR" means the Utah Science, Technology and Research Initiative.

(12) "UTAG" means the University Technology Acceleration Grants administered by the Utah Science, Technology and Research Initiative.

 

R856-5-4. Eligibility Criteria.

(1) ERT-P grant is available to university research teams that meet the following guidelines:

(a) Research team must include at least three researchers.

(b) Research team must include at least three Utah universities or colleges.

(c) Research team must include at least two Utah research universities under the Carnegie Classification of Institutions of Higher Education (http://carnegieclassifications.iu.edu/classification_descriptions/basic.php). The following three Utah universities are currently classified as research universities:

(i) University of Utah;

(ii) Utah State University;

(iii) Brigham Young University;

(d) Research team may include at least one researcher from universities in the state of Utah other than those listed in (1)(c).

(2) Research team must be developing a technology with applications that can address Utah-specific energy and natural resource issues.

(a) USTAR/OED may specify a specific subsector of Utah's energy and natural resource industry as a priority for grant funding in the ERT-P application materials.

(b) ERT-P grants are targeted at energy and natural resource innovation and development.

(c) In selecting targeted energy and natural resource subsectors eligible to receive support from ERT-P, the governing authority may consider the following factors:

(A) statewide or regional importance of the subsector to Utah's economy;

(B) relative size of the subsector, its stability, and growth potential;

(C) characteristics of the state's existing workforce, including education and training;

(D) the current availability of other sources of funding or risk capital (public or private) for early-stage companies in the technology sector;

(E) the potential for the subsector to develop new jobs and business opportunities in the state; and,

(F) the likelihood that research in this subsector will result in the creation of a company in Utah or IP transfer to an existing Utah company.

(3) Eligible technologies will be between a TRL 2-5 at the time of the anticipated grant award;

(4) Applicants may not receive ERT-P funding and UTAG funding for the same technology in the same Utah fiscal year.

 

R856-5-5. Application Form and Submission Guidelines.

(1) For each round of grants, USTAR/OED will provide a program announcement and make applications and instructions available on USTAR and/or OED's website, and in paper form upon request.

(2) Completed applications must be received on or before the specified deadline in the application instructions.

(3) The instructions will include the following:

(a) The procedure for submitting an application.

(b) Specific instructions for application content which will include:

(i) The procedure for submitting an application:

(A) description of the target grant;

(B) list of technical milestones; and,

(C) timeline for completion of research.

(ii) Specific instructions for the required budget outline, including:

(A) total project cost;

(B) a description of any funds already secured for activities related to this project;

(C) an itemized budget detailing planned use of grant funds; and,

(D) breakdown of costs to complete each milestone.

(iii) Description of the application evaluation process and scoring system.

(iv) Instructions for reporting project results and completing annual follow-up surveys.

(4) All complete applications will be reviewed and awardees selected via the criteria and method outlined in Rules 6-7 herein.

 

R856-5-6. Application Review Procedure.

(1) Initial eligibility screening.

(a) USTAR/OED will conduct an initial eligibility screening for each application to ensure:

(i) Completeness;

(ii) Verification of minimum eligibility requirements; and

(iii) Appropriateness of applicant's reported TRL assessment, proposed timelines, and budget.

(b) Any application that fails to meet the criteria in Rule 6 Section (1) will be rejected.

(2) Panel Review.

(a) Accepted applications will be reviewed by subject-matter experts ("expert panel") who will evaluate and score the applicant's proposed research project using the criteria in Rule 7.

(i) USTAR/OED will have discretion to select the experts for the review panels and shall consider, as applicable:

(A) academic qualifications including whether the expert has a terminal degree in a relevant field;

(B) relevant work experience and practical training in the field;

(C) knowledge of the the commercial/industrial energy sector or sub-sector in Utah;

(D) experience evaluating grant proposals; and,

(E) any other factors USTAR/OED deems important.

(ii) USTAR/OED will screen the experts for conflicts of interest before reviews are initiated using the conflict of interest policy available on USTAR's website. The experts will also be required to sign an NDA.

(iii) Governing authority review. A subcommittee of the governing authority will convene to review the expert panel's scores and develop recommendations.

(iv) Recommendations from the subcommittee concerning which projects should be awarded a grant and the proposed budget will be presented to the full governing authority for approval.

 

R856-5-7. Evaluation and Award Criteria.

(1) The expert panel will use a scoring system to evaluate and rank grant applications and determine grant amounts.

(a) The scoring criteria will be made available during the application period;

(b) The scoring system will be designed to assess and compare each applicant across several categories, which may include:

(i) Technical merit;

(ii) Strength and maturity of research and management team, as applicable;

(iii) Appropriate technology readiness level (TRL 2- 5);

(iv) Potential economic impact, as measured by:

(A) Job creation;

(B) Potential revenue due to expansion of current business or development of a new business; and/or,

(C) Projected time to revenue or job creation;

(v) Market need, technical and management experience and qualifications;

(vi) Reasonableness of cost proposal (i.e. size and allocation of budget is appropriate for the work proposed);

(vii) Reasonableness of proposed milestones;

(viii) Proposed timeline is achievable and will not exceed 18 months; and,

(ix) Any other factor indicative of applicant's ability to produce measurable and timely impacts on the state in areas related to the economic development performance metrics used to evaluate USTAR's activities.

 

R856-5-8. Grant Amount, Award, and Required Contract.

(1) USTAR/OED will have the discretion to limit the amount of funding that may be awarded for each ERT-P based on available funds, scope of project, and quality of proposal.

(2) USTAR/OED reserves the right to award funding for any proposal in full or in part, to request additional information, or to reject any or all applications based on the eligibility and evaluation criteria set forth in these rules and according to the judgment and discretion of the governing authority.

(3) Upon award of an ERT-P, and prior to any disbursement of funds, each lead university must enter into a contract with USTAR governing the use of grant funding.

(a) The "lead university" is defined as the principal investigator's university

(b) Subcontracts to the remaining universities will be administered by the lead university.

(4) Unless addressed in the terms and conditions of the contract between university and USTAR, the following provisions shall apply:

(a) grant funding may not be used to provide a primary benefit to any state other than Utah; and,

(b) for all other eligibility requirements, awardee must maintain eligibility status for the ERT-P program until the project is complete, all milestones have been met, final disbursement of funding has been made, and first year reporting has been completed.

(5) Violations of Rule 8, Section 4 may result in forfeiture of grant funding and require repayment of all or a portion of the funding received as part of the program.

 

R856-5-9. Contract Modifications.

University may request a modification to the terms of an ERT-P contract.

(1) USTAR may deny a modification request for any reason.

(2) USTAR shall have discretion to agree to reasonable, non-substantive changes.

(a) Nonsubstantive changes may include the following:

(i) changes to timelines of less than one month if it is the first such modification;

(ii) corrections to clerical errors in the application materials;

(iii) technical changes that do not alter the budget, company's eligibility status, or violate any state or federal law;

(3) Substantive changes must be approved by the USTAR governing authority.

(4) All approved changes shall be made in writing and through an amendment modifying the terms of the grant contract.

 

R856-5-10. Funding Distribution.

(1) Funding will be provided to the lead university and will be distributed per the subcontracts to each of the supporting universities.

(2) Initial funding of no more than 50% of the total grant award will be provided within a reasonable time after the ERT-P grant is approved to allow the university team to meet initial milestones.

(3) Remaining grant funds for individual milestones will be disbursed upon successful completion of those milestones.

(4) A portion of the final milestone funding will be withheld until final reporting is received.

(5) Specific funding details will be provided in the program announcement and in each ERT-P grant contract.

(6) Failure to successfully complete the milestones may result in a recapture of all or part of the grant funding and will be grounds to terminate the contract and any future funding.

 

R856-5-11. Milestones and Reporting.

(1) Research team is required to provide reporting, as applicable, specified in Sections 63M-2-702 and 704.

 

KEY: ERT Professors Grant, TRL, USTAR

Date of Enactment or Last Substantive Amendment: 2017

Authorizing, Implemented, or Interpreted Law: 63M-2-302(h)


Additional Information

More information about a Notice of Proposed Rule is available online.

The Portable Document Format (PDF) version of the Bulletin is the official version. The PDF version of this issue is available at https://rules.utah.gov/publicat/bull-pdf/2017/b20170101.pdf. The HTML edition of the Bulletin is a convenience copy. Any discrepancy between the PDF version and HTML version is resolved in favor of the PDF version.

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For questions regarding the content or application of this rule, please contact Thom Williams at the above address, by phone at 801-538-8633, by FAX at , or by Internet E-mail at thomwilliams@utah.gov.  For questions about the rulemaking process, please contact the Office of Administrative Rules.