July 19, 2018 | CIG Tax Insights
California food processors are some of the state’s largest consumers of energy. These businesses produce over 3.3 million metric tons of greenhouse gas (GHG) emissions.
As a state dedicated to sustainability, the passage of AB 109 led to the creation of the Food Processors Investment Program (FPIP). Administered by the California Energy Commission (CEC), FPIP will award $60 million to food processors1 upgrading their operations to reduce GHG emissions. These funds will be negotiated and awarded through a competitive process. FPIP award amounts will be based on a percentage (50 percent is the average) of capital expenditures related to one of two primary objectives—specific to the food processing industry:
The following are examples of FPIP qualified capital expenditure upgrades: Compressor system controls and optimization, machine drive controls, mechanical dewatering, advanced motors and controls, refrigeration optimization, improved drying equipment, process equipment insulation, boilers, economizers, steam traps, condensate returns, heat recovery, evaporators, solar thermal, and internal metering and software to assist in the management and control of electricity or natural gas.
CIG INSIGHTS & EXPERTISE: We anticipate all funds will be awarded. California food processors have been seeking this type of an incentive for years. Careful GHG emissions reduction analysis is a large portion of this incentive.
With extensive experience in negotiated incentives as well as experience working with food processors we have the experts to help your business secure an FPIP award in its inaugural application period.
WE’RE HERE TO HELP: If you’re interested in learning more about FPIP and how we can help your business to an award, please reach out to us for a complimentary assessment. Our team of incentive experts, engineers and former California government officials are ready to assist your business capture an FPIP award.