Here is what you need to know about The California Air Resources Board’s (CARB) F-gas Reduction Incentive Program (FRIP) second round of fund application.
Facility managers in the Golden State can take advantage of a winning proposition: reducing their organization’s environmental impact while saving money on energy bills. Senate Bill 1383 mandates reducing HFCs or fluorinated gases by 40% below 2013 levels by 2030.
The California Air Resources Board’s (CARB) F-gas Reduction Incentive Program (FRIP) makes this goal possible. CARB’s mission is to promote and protect public health, welfare, and ecological resources by effectively reducing air pollutants while recognizing and considering their effects on the economy.
FRIP offers grants to California businesses to help them phase out hydrofluorocarbons (HFCs) and instead adopt the use of climate-friendly, low-global warming potential (GWP) refrigerant technologies. For instance, CO2 is increasingly used as a natural refrigerant in various cooling and refrigeration applications due to its environmental benefits compared to synthetic refrigerants.
In short, some of the reasons to participate include:
FRIP Application Goals and Funding at a Glance
- Financial incentives: FRIP is associated with grants to offset the costs of equipment upgrades.
- Reduced operating costs: Energy-efficient equipment can lower utility bills.
- Environmental benefits: You’ll help California further its climate goals.
- Regulatory compliance: You’ll meet future refrigerant regulations.
This program might be relevant if your business is located in California and operates commercial or industrial refrigeration systems. You may qualify for FRIP funding if your business has eligible projects that demonstrate significant reductions in HFC emissions and meet other program requirements. That said, there are a few important details to consider before getting too invested:
- Facility size and equipment: While not everything is set in stone, larger facilities with a significant refrigeration footprint will likely have more of an advantage.
- Location: Additional incentives will be available to eligible projects located in disadvantaged and/or low-income communities to maximize the benefits to priority populations.
- Limitations: Be mindful of incentive maximums, such as:
- A single retail food facility location may not receive more than $400,000 (or $500,000 for facilities located in priority communities).
- The funding amount per retail food corporate entity is capped at $1 million (or $1.1 million for facilities located in priority communities).
- Funding for IPR, Cold Storage, and other refrigeration facilities is capped at $500,000.
- The funding amount cannot exceed 100% of the documented cost of the refrigeration equipment.
Proposed projects must fall under one of two types:
Full Replacement: 100% replacement of an existing refrigeration system using the high-GWP refrigerant with a refrigeration system using <10 GWP refrigerant.
Partial Replacement: Conversion of an existing refrigeration system using the high-GWP refrigerant to a secondary system using <10 GWP, with the primary refrigerant using <2200 GWP refrigerant.
FRIP Funds Application Start Time And Process
The online portal for the second round of FRIP funding is slated to open on October 15, 2024, and close on January 31, 2025. The last window of opportunity will be between March 3, 2025, to May 30, 2025.
Here’s how you can set yourself up for success in the weeks ahead:
- Confirm eligibility: Your facility must be registered with CARB RMP and in compliance with 2020 HFC regulations. The AIM Act sets forth a gradual phase-down schedule for HFC production and consumption in the U.S. The phase-down targets are based on a baseline and are expressed as a percentage reduction over specific time periods.
- Get to work now: The clock is ticking, even though the exact application requirements are still being defined. However, you can start doing your due diligence. Now’s the time to get information in order about your business, including your current refrigeration systems and potential upgrades.
- Take action: Once the application opens, you should act quickly. It’s a first-come, first-served program, so resources will be in high demand. Apply early to increase your chances of success.
To apply for FRIP funding, businesses must submit a project proposal to the program administrator. This document must detail the project, including the type of refrigerant to be used, the expected emissions reductions, and its anticipated cost.
The application process can seem daunting, but don’t worry! Our experts at CoolSysare well versed in the process and have helped thousands of customers take full advantage of federal or state grants such as FRIP. CoolSys is ready to help you navigate the FRIP application process, including:
- Determining eligible projects
- Scoping projects
- Obtaining project bids
- Submitting FRIP applications
FRIP presents an opportunity to be part of the solution. You can upgrade your refrigeration systems, reduce your environmental impact, and potentially save money on energy bills by taking action. Visit the CARB FRIP Funds Website to learn more as well as the CARB FRIP Funding Guideline and consider partnering with CoolSys to help your cause.
In general, you can look to our team’s expertise in environmental sustainability and cost savings. We’re at the forefront of installing and maintaining cutting-edge CO2 Systems. These systems operate with ultra-low GWP refrigerants, providing long-term energy savings.
By upgrading to CO2 or other ultra-low GWP refrigerant-based refrigerants, you comply with the latest regulations by significantly reducing greenhouse gas emissions associated with your refrigeration operation.
For context, we’ve installed more than 250 CO2 Systems, including some of the largest in the country, and maintain more than 1000. We employ 450 CO2-trained technicians across the U.S. to ensure your systems are properly installed and maintained to maximize your investment and optimize your operations.
Whether you apply for the grant or not, consider us a ready resource. We have helped customers secure FRIP and other state funding and can help you, too.
To learn more about how to transition to CO2 refrigerant systems and stay compliant confidently, contact CoolSys today!
We have the experience in this emerging technology to keep you ahead of the curve.
