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California Air Resources Board (CARB) has revised its requirements for the Fluorinated-gas (F-gas) Reduction Incentive Program (FRIP): Commercial and Industrial Refrigeration grant that seeks to alleviate barriers to adopting climate-friendly refrigerant technologies and to reduce emissions of hydrofluorocarbons (HFCs), which are potent greenhouse gases. Currently, $33 million is available in FRIP funding with maximum awards varying by refrigeration sector and scale of the project. CARB is currently accepting applications on a first-come, first-served basis for the second application window for this program, which closes on August 29, 2025.

What is FRIP: Commercial and Industrial Refrigeration?

The purpose of FRIP is to accelerate the adoption of ultra-low-global warming potential (GWP) refrigerants, defined as having a global warming potential of less than 10 (GWP <10). This solicitation focuses on commercial and industrial refrigeration, a sector that has market-ready ultra-low-GWP refrigerant technologies available in addition to the potential for significant emission reductions.

Who is eligible for FRIP funding?

To be eligible for FRIP funding, the site of the proposed project must be an existing refrigeration facility that is in California and is owned or operated by the applicant. The applicant, facility, and existing systems must also be registered in the Reporting System (R3) tool, under CARB’s Refrigerant Management Program (RMP) and must comply with existing federal and state laws throughout the grant term, including CARB’s RMP and 2020 HFC regulations.

What are the amended requirements for FRIP projects?

The amended minimum GWP is now >1,300 GWP for all existing refrigeration systems that will be replaced through this program. This includes all eligible refrigeration sectors including retail food refrigeration; industrial food refrigeration; and cold storage and other refrigeration. Common refrigerants with a GWP >1,300 include R-22, R-404A, R-448A, R-449A, R-507A, and the entire R-407 series.

The minimum refrigerant charge (for the sum of existing systems to be replaced through FRIP) is 500 pounds, and the majority of the charge size must be from systems with more than 50 pounds of refrigerant. Full and partial refrigeration system replacements are eligible under FRIP. All replacements must use ultra-low-GWP, defined as having a GWP <10, refrigeration technologies.

What are examples of technologies that could be supported by FRIP?

Examples of eligible full system replacements that may be funded through FRIP include but are not limited to:

• Transcritical CO2 rack systems or remote condensing units with adiabatic condensers, pressure exchangers, ejectors, and/or other enhancements that improve performance.
• Ammonia (NH3), propane, or hydrofluoroolefin (HFO) in cascade or indirect systems with CO2 or glycol as secondary heat transfer fluids.
• Propane, CO2, or HFO microdistributed systems with a water loop
• HVACR integrated systems that provide refrigeration as well as space heating and cooling using ultra-low-GWP refrigerants.

Examples of eligible partial system replacements that may be funded through FRIP include but are not limited to HFCs with GWP <2,200 in cascade or indirect systems with CO2 or glycol as secondary heat transfer fluids. If the existing refrigeration system uses a refrigerant with a GWP ≥ 2,200, then the facility must complete a refrigerant retrofit as part of the partial replacement.

What are this program’s allowable costs?

Eligible costs include the cost of the ultra-low-GWP refrigeration equipment, which may include refrigeration mechanical equipment, refrigerant, evaporators, connecting piping, valves and controls, and other materials. Refrigeration equipment does not include installation labor or subcontracts. If the proposed system is an HVACR integrated system, all ultra-low-GWP equipment is considered to be ultra-low-GWP refrigeration equipment. Secondary refrigeration equipment (excluding heat exchangers) is not an eligible cost if the existing indirect system already uses an ultra-low-GWP secondary refrigerant.

Due to funding constraints, equipment costs will be prioritized for reimbursement. This means that in the event the total equipment cost equals to or exceeds the total award amount, only equipment costs will be eligible for reimbursement.

What are the funding amounts for FRIP?

Award amounts differ by refrigeration sector and scale with the size and scope of the replacement, as outlined below. Larger funding amounts will be allocated to projects located in priority communities; in independent retail food facilities; and in projects pursuing full replacements, as opposed to partial replacements.

Retail Food Refrigeration

For retail food refrigeration facilities, awards are based on the linear feet of high-GWP refrigerated case removed and the square feet of high-GWP walk-in cooler or freezer space removed, as detailed on Page 11 of the Funding Guidelines. For island cases that are removed, the perimeter of the unit will be used to measure linear feet of refrigerated case.

Maximum awards per facility vary based upon the number of facilities owned by the parent company. Companies that own or operate 20 or more retail food facilities in California are limited to $400,000 per facility (or $500,000 for facilities located within priority communities), up to $2 million in total funding (or $2.2 million if at least four facilities are located in priority communities). Parent companies that own or operate fewer than 20 retail food facilities are eligible to receive up to $750,000 for each facility and may not apply for more than two facilities.

Industrial Process Refrigeration

For industrial process refrigeration facilities, awards are based on the cooling load tons utilizing high-GWP refrigerant that are replaced with an ultra-low-GWP refrigerant. A cooling load ton is defined as the refrigeration system’s applied rate of heat transfer measured in tons at the cooling coils and heat exchangers OR the system capacity at applied conditions, whichever is less. Award amounts are $1,500 per cooling loading ton for full replacements and $900 per cooling loading ton for partial replacements. For industrial process refrigeration facilities, parent companies may receive no more than $3 million, which may be used across multiple projects. The incentive award per facility will not exceed $2 million.

Cold Storage and Other Refrigeration

For cold storage and other types of refrigeration facilities, depending on refrigeration system type, awards may be based on the linear feet of high-GWP refrigerated case removed, the square feet of high-GWP walk-in cooler or freezer space removed, and/or the cooling load tons utilizing high-GWP refrigerant that are replaced with an ultra-low-GWP refrigerant. For island cases, the perimeter of the unit will be used to measure linear feet of refrigerated case.

For cold storage and other refrigeration facilities, parent companies may receive no more than $3 million, which can be used across multiple projects. The incentive award per facility will not exceed $750,000.

What is the application timeline for this program?

Funding will be allocated on a first come, first served basis until August 29, 2025.

Applicants should expect notification within three weeks of submission.

The full Amended Funding Guidelines for FRIP can be found here.

For more information on this grant and how to apply with Morrison’s assistance, please contact the Morrison Grants Team by email at grants@morrisonco.net or call us at 530-893-4764.