Public Workshop SB 1013 F-gas Reduction Incentive Program (FRIP) - PowerPoint PPT Presentation

Public Workshop SB 1013 F-gas Reduction Incentive Program (FRIP) July 28, 2020 California Air Resources Board Research Division F-gas Reduction Strategy Section FRIP@arb.ca.gov

CARB Team Today Pam amela G a Gupt pta, a, Man anage ager Aa Aanch chal Ko Kohli, In , Ince centive ve Pr Program, , HFC Re Regulati tion ons Pamela.Gu Pa .Gupta@arb.ca .ca.gov Aa Aanch chal.Ko .Kohli@arb.c .ca.g .gov Mic ichael l FitzGi zGibbon, Br , Branch ch Chief Chief Elizabeth El th Bre rega, In , Ince centive ve Pr Program, H , HFC Re Regulati tion ons Michael.Fitzgibbo bon@ar arb. b.ca. a.go gov Eliza zabeth.Br .Brega@arb.ca ca.g .gov El Elizabeth th Scheehle, Div ivis isio ion Chief n Chief Glenn G Gallagher, H HFC Regs. Elizabeth.Scheehle@arb.ca.gov Glenn.Gal allag agher@ar arb.ca. a.gov Shannon D Dilley, S Senior A Attorney Ri Richie K Kaur, P Prop opos osed HFC Re Refri rigera rati tion on Re Regulati tion on Shannon.D .Dilley@ y@arb.ca .ca.g .gov Rich chie.K .Kaur@arb.ca .ca.g .gov Ka Kathryn yn Kyn Kynett, Pr , Propose sed H HFC AC AC Re Regulati tion Kathryn Ka yn.Kyn .Kynett@arb.ca ca.g .gov Ja James T s Tipton, , CA CA Clima Climate e In Inve vest stments s Ja James.T s.Tipton@arb.ca .ca.g .gov Matthew O Ong, C , CA A Clima Climate I e Inv nves estmen ments Matthew.On Ma .Ong@arb.ca .ca.g .gov 2

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Today’s Agenda • Session 1 • Proposed FRIP Program Materials and Application Process • Session 2 • Using the FRIP Tool to Calculate GHG Emission Reductions • Session 3 • CEQA process • Session 4 • FRIP Evaluation and Award Process • Grantee Requirements • Funds Disbursement • Clarifying Questions 4

Introduction 5

Background  SB 1013 established an incentive program to “promote the adoption of new refrigerant technologies.”  $1 million allocated in the FY 2019-20 budget from the Greenhouse Gas Reduction Fund (GGRF) (AB 74, Budget Act of 2019).  GGRF appropriations fall under the umbrella of California Climate Investments (CCI).  FRIP developed with SB 1013 requirements, GGRF and CCI requirements and stakeholder input. Image source: Depositphotos.com 6

Retail Food Focus for FRIP HFC Emission Sources in CA, 2018 Other 11% Sta tati tionary ry Re Refrige geration on 27% 27% Mobile AC + Transport Refrig 28% Stationary AC 34% Source: CARB F-gas Inventory, 2018 7

PROPOSED F-gas Reduction Incentive Program Materials 8

FRIP Process and Proposed Timeline 9

FRIP Funding Deadlines Legislatively mandated deadline Funds allo allocat atio ion Fiscal Year 2019-2020 budget Enc ncumbr umbranc nce dea e deadl dline ne June 30, 2021 Liq iquid idat atio ion d dead adlin line June 30, 2025 Enc ncumbr umbranc nce e = Funds s alloca cated to Gr Grantees a s and grant a agreements s • Tier I betw between C een CARB and G nd Gra rantees ntees ex exec ecuted uted • Tier II Liquidation = = Project ct delive verable co complete ted and funding a awa ward invo voice ces s su submitte ted t to CARB for r reimburse sement 10

Proposed FRIP Program Materials Program Guidelines and Solicitation Manual (or “Guidelines”) Attachment B: Application Form Templates for forms Attachment C: Project Summary templates for Tiers I and II submitted in the Attachment E: Engineering Assessment Template (Tier I only) application package Attachment F: Payee Data Form Attachment G: CEQA Worksheet GHG Emissions Attachment D: User Guide for the FRIP Quantification Quantification Materials Methodology and FRIP GHG Tool Attachment A: Submittal checklists for Tier I and II Attachment G: CEQA Notice of Exemption Example Supporting documents Attachment H: Sample Draft Grant Agreement executed by CARB and the Grantee upon receiving an award Available at: https://ww2.arb.ca.gov/our-work/programs/FRIP/program-materials 11

Proposed Funding Eligibility • Funding limited to existing and new retail food facilities in California that: • Have or plan to install a refrigeration systems containing > 50 pounds of alternative lower-GWP refrigerant. • For new facilities, plan to submit a building permit application prior to January 1, 2022. 12

Proposed Funding Amounts for Tier I Technology and refrigerant Total funds Maximum funding available for GWP limits available ($) projects ($) Installation of or full/partial 600,000 150,000 for existing facilities or conversion to ultra-low-GWP 50,000 for new facilities or 100% refrigerant (< 10 GWP) project cost premium (whichever is lower) OR 200,000 for existing facilities or 75,000 for new facilities or 100% project cost premium (whichever is lower) for projects located in LADWP territory 13

Proposed Funding Amounts for Tier II Technology and refrigerant Total funds Maximum funding available for GWP limits available ($) projects ($) i. i. Re Retrof ofit on only: : Refrigerant 400,000 i. 25% of retrofit costs*. 50% of retrofit from high-GWP (> costs* for projects located in 3900) to lower-GWP low-income/disadvantaged refrigerant (< 1500 GWP) communities or independent stores. i. i. Ret etrofi fit + c + cha harge ge reduc eduction: n: Refrigerant retrofit from high- ii. 25% of retrofit costs* and GWP (> 3900) to lower-GWP $25/pound of refrigerant refrigerant (< 1500 GWP) with permanently removed up to at least 25% charge reduction 1000 pounds. * Retrofits valued at $45/pound 14

LADWP Partnership • Los Angeles Department of Water and Power (LADWP) has allocated $200,000 for Tier I projects allocated in LADWP territory. • LADWP will provide match funding up to $25/MTCO 2 e of refrigerant emission reductions. • Projects selected for FRIP funding located in LADWP territory will be eligible for higher maximum funding amounts. • Remaining funds may be allocated to Tier II projects located in low-income and disadvantaged communities. 15

ETP/SCE Partnership • The Emerging Technology Program (ETP), led by Southern California Edison (SCE) will provide comprehensive Measurement & Verification (M&V) support for select Tier I projects. • Projects located in IOU territories and scalable technologies are eligible for M&V support. Projects outside IOU service territory will be considered on a case-by-case basis. • SCE will participate in the FRIP application evaluation process and identify eligible Tier I projects. • Applicants do not need to submit a separate application to receive M&V support. If selected for an award, FRIP applicants must sign an agreement to coordinate with SCE and share data publicly. • Some Tier II projects will be considered for M&V support. 16

Proposed Scoring Criteria • Stage One: Administrative Screening Criteria • Same criteria for both Tier I and Tier II projects • Stage Two: Technical Scoring Criteria • Different criteria for Tier I and Tier II • Mandatory and Optional criteria for Tier I and Tier II • Competitive solicitation • Tier II ties will be resolved in favor of applications received first 17

Stage One: Administrative Criteria Applic pplicatio ions s mus ust t meet eet ALL cri riteri teria to to progres ess to to Sta Stage e two wo The application is received by due ue da date a and t d time ime specified in the Guidelines. The applicant is an eligible ligible a applic pplicant and the technology is an eligible ligible tec techno hnology. The applic pplicatio ion form m is s is sign igned d and dated. ALL LL requ quir ired d docum uments ents for Tier I and Tier II are included as specified in the application checklist and in the Guidelines. The application contains a letter etter conf nfirming ng allocati tion n of fund unds for r the the to tota tal projec ect t cost other than funds requested from FRIP . The requ quest sted d fundin ding g amo mount falls lls wit ithin in the ma maximu imum m range ge specified in these Guidelines. If the applicant has submitted more than one application for either tier, each applic pplicatio ion is is for a a dis distin inct pr proje ject. The application includes a Resolution approving projects, if applicable. 18

Proposed Mandatory Technical Criteria (Tier I) Maximum Stage Two: Mandatory Technical Scoring Criteria for Tier I Points Cost effectiveness of Refrigerant GHG reductions based on total cost and cost premium of the refrigeration system ($/MTCO 2 e) (using FRIP 30 tool) Innovation and market potential of proposed technology 20 Plan for information sharing 15 Plan to increase workforce development 15 Project readiness 10 Data collection plan (Measurement and verification (M&V)) 10 Maxi ximu mum m possible points ts f for r ma mandato tory cri ry crite teri ria 100 100 19