December 12, 2018

Food Production Incentive Program awards $12 million to four companies

The California Energy Commission (CEC) recently announced its first awards under the new $57 million Food Production Incentive Program (FPIP). According to CEC, the program is providing funds for commercially available and emerging energy efficiency and renewable energy technologies for food production facilities with the goal of reducing greenhouse gas emissions and benefiting priority populations.

Four CLFP members were awarded funds for six projects totaling $12 million. These members are:

CEC is expected to re-open solicitation for a second round of FPIP applications sometime soon.

Last year, CLFP was appointed by Governor Jerry Brown’s office to a Food Processing Industry Task Force to find ways to assist the industry in coping with compliance costs associated with the Cap-and-Trade Program and to provide guidance to CEC for FPIP.

Contact John Larrea for more information.

About FPIP

California’s food processing industry is one of the largest users of energy in California, consuming approximately 7,000 million kWh and 500 million therms in 2015. It’s also a large producer of greenhouse gas (GHG) emissions, emitting over 3.3 million metric tons of CO2 equivalent annually.

These industries have unique challenges. Some facilities operate for a few months a year while others operate year round. In all these situations, reliable technologies are needed to ensure food safety while minimizing production losses. Additionally, these industries are facing greater competition from other states and internationally, making it difficult for them to make investments into the technologies and processes needed to reduce their GHG emissions in alignment with AB 32 goals and requirements.

As the Cap-and-Trade regulations become stricter, more food processors will need to purchase a greater number of emissions credits to continue operations unless investments are made to reduce their GHG emissions