F-gas Reduction Incentive Program
Senate Bill 1013 established the Fluorinated Gases Emission Reduction Incentive Program, also referred to as the F-gas Reduction Incentive Program (FRIP) and directed the California Air Resources Board (CARB) to administer the program. FRIP’s goal is to promote the voluntary adoption of climate-friendly low global warming potential (low-GWP) refrigerant technologies and alleviate barriers that prevent the adoption of these technologies.
The CARB received 45 million dollars to expand the adoption of climate-friendly low-GWP refrigerant technologies and further efforts to reduce F-Gas emissions. Fifteen million of the funds come from the General Fund. Ten million of the funds come from the Greenhouse Gas Reduction Fund (GGRF) administered through the California Climate Investments program. Twenty million of the funds is part of the Governor’s larger Clean Energy Package* which specifically dedicates funds for incentives for low-GWP refrigerants as a strategy to reduce emissions from buildings.
CARB is currently developing a new program structure, which will be based on stakeholder input. Subscribe to the listserv for notifications on upcoming workshops.
The CARB received one million dollars from the greenhouse gas reduction fund (GGRF) in the 2019-2020 fiscal year to fund FRIP. Based on industry input received, CARB decided to focus the first round of FRIP incentive grants on the retail food sector and help cover portion of the higher incremental costs of climate-friendly refrigeration systems in newly constructed and existing supermarkets.
Through a competitive grant solicitation process, CARB awarded incentive funds to 15 projects in California supermarkets (see map below).
Beyond providing financial assistance to supermarkets to accelerate the adoption of climate-friendly refrigerant technologies, the FRIP program aims to address industry barriers to the widespread adoption of climate-friendly refrigeration by demonstrating the reliability of these technologies and supporting the food sector’s transition to a low carbon future. As part of every grant award, there are requirements to enhance workforce development and information sharing with industry stakeholders, which have been identified as market barriers.
Additionally, the Emerging Technologies Program (ETP), a statewide initiative administered by Southern California Edison, will provide comprehensive measurement and verification (M&V) support for all FRIP projects to gather third-party verified data about the performance of these new technologies. The lack of field data regarding the performance of ultra-low-GWP technologies has been one of the greatest barriers to their adoption. Through CARB’s partnership with the ETP, there will be a wealth of publicly available information about new system types.
SB 1013 established the Fluorinated Gases Emission Reduction Incentive Program (FRIP), to be administered by CARB, to promote the adoption of new refrigerant technologies to achieve short- and long-term climate benefits, energy efficiency, and other co-benefits, as specified. The bill authorizes moneys from the Greenhouse Gas Reduction Fund to be allocated for incentives offered as part of the program. In the 2019-2020 budget (Assembly Bill (AB) 74, Budget Act of 2019) (Chapter 23, Statutes of 2019) $1 million was allocated for the FRIP program.
SB 1383 (Chapter 395, Statutes of 2016) mandates the reduction of hydrofluorocarbons (HFCs) or fluorinated gases by 40% below 2013 levels by 2030. FRIP is supporting CARB's current and proposed regulations on HFC usage in stationary refrigeration, air conditioning, and other end-uses by providing funding to mitigate first costs associated with the transition to lower GWP technologies, necessary to meet SB 1383 targets.
In 2017, the CARB Board approved the Short-Lived Climate Pollutant (SLCP) strategy developed pursuant to SB 605 (Chapter 523, 2014). The SLCP strategy identifies the adoption of low GWP refrigerant technologies to be among the most effective measures to reduce HFC emissions and meet the legislative mandates of SB 1383. .
The first round of funding for FRIP was from California Climate Investments, a statewide program that puts billions of Cap-and-Trade dollars to work reducing greenhouse gas emissions, strengthening the economy, and improving public health and the environment – particularly in disadvantaged communities.
To guide the investment of Cap-and-Trade dollars, CARB, the Department of Finance, and other State agencies, are required to submit an Investment Plan to the Legislature every three years. CARB is currently developing the Cap-and-Trade Auction Proceeds Fourth Investment Plan (Fourth Investment Plan) for Fiscal Years 2022-23 through 2024-25, which is due to the Legislature in January 2022. HFC reduction has been identified as an investment priority in the Fourth Investment Plan.
- *The Clean Energy Package allocated an additional 20 million for incentives for low-GWP refrigerants in fiscal year 2023-24. These funds will not be appropriated until the 2023-24 budget.