Stimulus: the truth comes out at CalCEF event

In recent weeks I have been to several events purporting to help greentech entrepreneurs access stimulus funds, i.e. the funds from the American Recovery and Reinvestment Act (ARRA). To give you an idea of scale of the stimulus, ARRA is twice the size of both the Federal Highways program and the Apollo program.

Well . . . on Monday I finally went to an event, entitled Demystifying the Stimulus Package, where the speakers actually knew what they were talking about. 

Congratulations to CalCEF for organizing a great event with knowledgeable and well researched presentations and panels. There are some reviews of the CalCEF event at Greentech Media here and here. 

I was interested to learn about the timetable. There is considerable pressure to start stimulating the economy and creating jobs quickly.  Most of the funds are to be spent over the next 2-3 years, but many programs extend beyond 2011.  According to Matt Rogers, the man at the DoE responsible for shovelling the money out the door, the timetable for obligating the money is: 

• Memorial Day (25 May) - 10% obligated
• Labor Day (7 Sep) - 50% obligated
• 30 Sep - 70% obligated

He also said that the first block of ARPA-E bids are due mid June with additional rounds in Q4 2009 and Q2 2010.

Meanwhile in California, the CEC is responsible for doling out much of the Federal money allocated to California. Martha Krebs of the CEC said solicitations were unlikely until August 2009.

Back in 2006 we sucessfully bid for $11 million in DoE funds for Zenergy/SC Power, after several attempts. I was also involved in previous PIER and DoE bids at Zenergy, Flextronics and my fuel cell company. We had some experienced partners and learned from our mistakes.

My advice?  

• Is government money is the right thing for you?
  • Do you have finance to meet the cost share?
  • Do you have the band-width to manage the project?
  • Can you handle the administration?
  • Will the 2-3 year program fit your R&D or product development cycle? 
• Build long-term relationships with DoE program staff.
• Take the opportunity to shape the programs before the FOA is issued.
• Partner with credible organisations.
• Understand the rules around foreign participation, but don't assume it can't be done.
• Address the selection criteria.
• Differentiate your bid.
• Don't leave it until the last moment.

 Bottom Line: Start early and pick your partners (including those consultants and attorneys) carefully.