I can probably put it anywhere, but I'm using bower to manage js/css/scss. Going by an article is how I decided on components folder. Seems nice and clean that way, but I'm open to better options. Yes the scss is in that folder it's called foundation.scss. No underscore in file name. Yes I restarted. However now that you mention the error, there is no error. There's just no css in the application.css file it creates. And the clear fact there's no style. :) The foundation.scss just has a bunch of includes. Here's a sample.
/ Sass utilities
@import 'util/util';
// Global variables and styles
@import 'global';
// Components
@import 'grid/grid';
@import 'typography/typography';
@import 'forms/forms';
@import 'components/visibility';
@import 'components/float';
@import 'components/button';
@import 'components/button-group';
@import 'components/accordion-menu';