Article 3 - Food Production Investment Program

California Public Resources Code — §§ 25663-25663.6

Sections (4)

Added by Stats. 2022, Ch. 251, Sec. 12. (AB 209) Effective September 6, 2022.

The commission shall establish and administer the Food Production Investment Program to provide financial incentives for the implementation of eligible projects to accelerate the adoption of advanced energy technologies and other decarbonization technologies at eligible facilities to support electrical grid reliability and reduce the emissions of greenhouse gases from those eligible facilities.

§ 25663.2

Added by Stats. 2022, Ch. 251, Sec. 12. (AB 209) Effective September 6, 2022.

(a)The commission may establish project and facility eligibility guidelines for purposes of this article.

(b)The eligibility guidelines established pursuant to subdivision (a) shall be consistent with both of the following requirements:

(1)“Eligible facility” shall include, but not be limited to, a facility that is directly involved in food production and processing, and related support facilities.

(2)“Eligible project” shall include, but not be limited to, both of the following:

(A)The purchase and deployment of advanced technologies and

equipment that exceed the best available control technologies, as defined in Section 40405 of the Health and Safety Code, if applicable.

(B)A project that does at least one of the following:

(i)Enhances electrical grid reliability and enables an eligible facility to participate in a utility load reduction program, such as an emergency load reduction program.

(ii) Electrifies processes that use gas or other fossil fuels.

(iii) Incorporates photovoltaics, energy storage, or other renewable energy sources.

(iv) Increases energy efficiency.

(v)Develops and deploys novel decarbonization technologies and strategies, except

carbon capture or utilization technologies.

§ 25663.4

Added by Stats. 2022, Ch. 251, Sec. 12. (AB 209) Effective September 6, 2022.

(a)In providing financial incentives pursuant to this article, the commission shall give preference to an eligible project that does one or more of the following:

(1)Provides significant benefits to the electrical grid, especially during net peak periods.

(2)Maximizes the reduction of the emissions of greenhouse gases.

(3)Reduces air pollution in under-resourced communities.

(b)In providing financial incentives pursuant to this article, the commission shall prioritize an eligible project that reduces demand during net peak periods.

(c)(1) The commission shall consult with the State Air Resources Board to ensure that financial incentives provided pursuant to this article reduce the emissions of greenhouse gases under the statewide greenhouse gas emission limits in furtherance of the state’s greenhouse gas reduction targets, to the extent feasible under the State Air Resources Board’s regulatory programs.

(2)To comply with the requirements of this subdivision, the commission may require a recipient of a financial incentive to surrender to the State Air Resources Board the number of annual allowances allocated at no cost to the facility pursuant to the market-based compliance mechanism developed pursuant to Part 5 (commencing with Section 38570) of Division 25.5 of the Health and Safety Code equivalent to the greenhouse gas emissions reduced by the project.

(d)A recipient of a financial incentive pursuant to this article shall not receive more than 20 percent of the moneys allocated pursuant to this article.

§ 25663.6

Added by Stats. 2022, Ch. 251, Sec. 12. (AB 209) Effective September 6, 2022.

An eligible project that receives a financial incentive pursuant to this article is ineligible for a financial incentive pursuant to the Industrial Grid Support and Decarbonization Program (Article 2 (commencing with Section 25662)).