(b)To the extent authorized by the Internal Revenue Code, the Western Commercial Space Center, a nonprofit corporation, shall be charged with promotion and coordination of entities choosing to participate in the Highway to Space Program.

(c)The Highway to Space Competitive Grant Program is hereby established to provide funding, upon appropriation by the Legislature, for the development of activities in California related to commercial space infrastructure. For purposes of this section, commercial space infrastructure shall include civil or commercial space transportation systems, new or improved space infrastructure, related space support services, or any additional activities that the center deems consistent with these specifications. Entities conducting activities in California intended to enhance or promote commercial space infrastructure or space flight, including public, private, educational, commercial, nonprofit, or for-profit entities are eligible to apply for the Highway to Space Competitive Grants.

(1)To the extent authorized by the Internal Revenue Code, the center shall promote Highway to Space Competitive Grants. If funding is appropriated by the Legislature, the center shall, at least annually, issue requests for proposals.

(2)(A)The center shall develop a minimum baseline set of requirements and points a grant application must receive to be considered for funding. Requirements in addition to the minimum baseline set, which are consistent with the goals and objectives of this program, may be added or deleted from each year’s grant solicitation.

(B)Any grant application meeting the minimum baseline set of requirements and points in paragraph (2) is automatically eligible for consideration in three subsequent grant year solicitations. The applicant is not required to resubmit a new grant application during this time, but may, in future grant solicitations, provide the review panel with any of the following:

(i)Additional information to enhance its current minimum baseline set of requirements and points.

(ii)Any additional information on the grant application that may be necessary to complete any new or existing requirements as provided for in subparagraph (A).

(C)The program shall award grants based upon a competitive application process, addressing, at a minimum, each project’s eligibility, a review of the proposal’s scientific and technological aspects, and the ability to fulfill the goals of the program.

(d)It is the intent of the Legislature that the following be considered in developing the minimum baseline set of requirements in subparagraph (A) of paragraph (2) of subdivision (c):

(1)Identification of all sources or funding for the entire project, which should include at least one of the following:

(A)A private sector company or companies.

(B)One or more foundations, industry associations, or nonprofit cooperative associations.

(C)Tangible or intangible in-kind support including staff, facilities, applied technology, or other, as defined further in the grant solicitation.

(D)Federal or local government funding.

(2)No substitution of other project funding by this grant.

(3)A demonstration that a majority of the project will be undertaken in California.

(4)Inclusion of one or more of the following in the project, each of which should have significant operations in the state:

(A)Private sector companies.

(B)Foundations, industry associations, or nonprofit cooperative associations.

(5)An agreement among all project participants as to the intellectual property rights relative to the project.

(6)The potential impact on the state’s economy.

(7)The cost-effectiveness of the project.

(8)The importance of state funding for the viability of the project.

(9)Cost sharing by other project participants.

(e)In evaluating grant proposals, the center shall establish an impartial review panel comprised of technical and scientific experts and government representatives to review grant applications. The panel shall be composed of members from throughout the state who are knowledgeable of commercial space infrastructure, or related activities. The panel membership shall be selected so as to afford representation of all parts of the state so far as is practicable. No more than 30 percent of the panel members shall be government representatives, and all other members shall either be actively involved in industries related to space flight, or technical and scientific experts in activities related to space flight.

(1)The review panel shall review and evaluate Highway to Space Competitive Grant applications, based on the grant solicitation requirements. In accordance with subparagraph (A) of paragraph (2) of subdivision (c), a point system shall be developed to evaluate the grant applications similar to those set forth in Sections 8450 and 15379.3. In making evaluations, the review panel shall apply the criteria and priorities, as determined by the grant solicitation. The grant review shall include a determination as to whether the project is eligible, the application is complete, and the proposed use of funding is consistent with the requirements of the grant solicitation. The grant review shall include a determination that there is no conflict of interest, and any other technical evaluation determined necessary.

(2)The review panel shall compile a preliminary list of grant applications for projects determined to be qualified pursuant to paragraph (1), and submit the list to a coalition composed of the review panel, the alliance, and the Trade and Commerce Agency, each of which shall have one vote.

(3)The coalition shall rank grant applications on the preliminary list by the degree to which each meets the criteria described in the grant solicitation and shall forward this final, consolidated list to the Secretary of Trade and Commerce for awarding of grant funding. The list may include the coalition’s recommendation as to the amount of state funding for each grant application, potential multiyear funding of a grant application which must be encumbered in a single fiscal year, or both.

(4)The Secretary of Trade and Commerce shall award grants, based on the coalition’s final recommendation list, and to the extent funds are available, to applications receiving the highest ranking, unless the secretary finds that changes to the ranking are necessary due to noncompliance with the grant solicitation criteria or because they pose conflicts of interest. The Secretary of Trade and Commerce may overturn a recommendation by the coalition only if the secretary finds clear and convincing evidence to support that action. A report on the funding determination shall be transmitted to the Governor and the chairs of the Senate and Assembly fiscal committees.

(f)The center is not eligible to apply for grant funding under this section.

(g)The Western Commercial Space Center shall be an official recipient of grants from federal, state, or local government or from private businesses or individuals, for Highway to Space Program activities, including, but not limited to, studies, services, infrastructure improvements and modernization, and defense transition programs, to the extent permitted by law. Any other entity legally eligible may also receive grant funds for these purposes.

(h)The Western Commercial Space Center acting as a corporation may not engage in or hold stock or any controlling interest in for-profit endeavors relating to space flight-related activities.

(i)The center may establish an advisory committee to provide input, evaluation, program funding recommendations, and other recommendations on the Highway to Space Competitive Grant Program. The committee may also provide recommendations on other space flight-related issues, as directed by the center. The committee membership may include representatives from local governments, industry, civic and research organizations, or the general public located in areas with active grant applications. The committee may also include members from throughout the state with an interest in space flight activities.

(j)Nothing in this section shall preclude the state from providing alternative funding allocations for space-related activities.