Food Production Investment Program

Docket # 18-MISC-01

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. They are 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.

With the recent passage of Assembly Bill 109 (Ting, Budget Act of 2017, Chapter 249, Statutes of 2017), the California Energy Commission was provided with $66 million from the Greenhouse Gas Reduction Fund (GGRF). Of this amount, $60 million will be used to establish the Food Production Investment Program (FPIP), which will provide grants, loans, or financial incentives to food processors to implement projects that reduce greenhouse gas emissions. FPIP has two primary goals, (1) help replace high energy consuming equipment and systems in the food processing industry with market-ready and advanced technologies and equipment, and (2) accelerate the adoption of state-of-the-art energy technologies that can substantially reduce energy use and costs and the associated GHG emissions.

Cyrus Ghandi
California Energy Commission
Phone: (916) 327-1506
E-mail: Cyrus.Ghandi @


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