DEC Releases Environmental Bond Act Draft Guidelines for Food Security and Refrigeration Grant Program

The New York State Department of Environmental Conservation (DEC) today released for public review and comment draft eligibility and guidelines to allocate funding under the $4.2 billion Clean Water, Clean Air and Green Jobs Environmental Bond Act of 2022 (Bond Act) to support food security in disadvantaged communities. This program would leverage Bond Act funds to support the phaseout of harmful greenhouse gas emissions currently used as refrigerants in markets, grocery stores, and other facilities for food storage.

DEC Interim Commissioner Sean Mahar said, "The historic Clean Water, Clean Air and Green Jobs Environmental Bond Act provides New York State with the opportunity to invest up to $1.5 billion to reduce air pollution and address the climate crisis, including $200 million for projects that reduce or eliminate harmful emissions impacting disadvantaged communities. DEC encourages public input on the draft guidelines released today and looks forward to continuing to work with our many partners and stakeholders to reduce harmful emissions while prioritizing the health and safety of New Yorkers and helping business prepare for the transition to climate-friendly alternatives."

Hydrofluorocarbons (HFCs) are found in cooling and refrigeration equipment and have global warming potentials (GWP) hundreds to thousands of times higher than carbon dioxide. GWP is a measure of the ability of gases to trap heat in the atmosphere.

The average supermarket leaks thousands of pounds of HFCs every year. To help stores make the transition to climate-friendly refrigerants, DEC will work with a not-for-profit program administrator to provide grants using Bond Act funds for capital projects that replace existing HFC refrigeration equipment with equipment that uses natural refrigerants with ultra-low or zero GWP. Replacing HFC equipment now will help businesses avoid rising HFC refrigerant costs and continue to serve their communities while significantly reducing greenhouse gas emissions.

Eligible projects include:

1. Projects to replace full or partial refrigeration systems that use HFCs with refrigeration products or systems that contain natural refrigerants (natural refrigerants include carbon dioxide, ammonia, and propane).
2. Projects must benefit a disadvantaged community and demonstrate a commitment to food security in the community.
   • Project beneficiaries should demonstrate a commitment to ensuring residents of the local community have access to fresh food.
3. Projects will be located at facility types including but not limited to existing food retail stores, food banks, food hubs, or other facilities that serve food security purposes.
   • Eligible project costs include HFC refrigerant system replacements, which may include planning and design, equipment purchase, and installation. Projects that host free workforce training events related to the operation and maintenance of the new equipment will be prioritized for funding.

The full eligibility guidelines are available in this week's Environmental Notice Bulletin.

As an example of successful projects to reduce HFCs, in March 2024, DEC announced the completion of two projects to replace harmful greenhouse gas refrigerants in disadvantaged communities. The projects at an ALDI in Buffalo, Erie County, and a Walgreens in Islandia, Suffolk County, are models for future commercial sustainable refrigeration transitions in supermarkets and drugstores in disadvantaged communities. These demonstration projects will help guide the statewide transition away from HFCs while informing policy development and programming, and together with projects that will be supported through the Bond Act, will help New York reach its greenhouse gas emission reduction requirements.

Public comments on the draft guidelines will be accepted until Friday, July 26, 2024, at 5 p.m. and can be submitted in writing by mail to Jessica Fowler, New York State Department of Environmental Conservation, Office of Climate Change, 625 Broadway, Albany, NY 12233-1030; or by email to:  [email protected].

Disadvantaged Communities
The Bond Act requires that disadvantaged communities shall receive no less than 35 percent, with the goal of 40 percent, of the benefit of total Bond Act funds ($4.2 billion). Disadvantaged communities are those identified by the Climate Justice Working Group, pursuant to the Climate Act. Consistent with this Bond Act requirement, DEC will aim to prioritize 40 percent of grant awards to benefit disadvantaged communities. 

New York's Clean Water, Clean Air and Green Jobs Environmental Bond Act
On Nov. 8, 2022, New York voters overwhelmingly approved the $4.2 billion Environmental Bond Act. State agencies, local governments, and partners will be able to access funding to protect water quality, help communities adapt to climate change, improve resiliency, and create green jobs. Bond Act funding will support new and expanded projects across the state to safeguard drinking water sources, reduce pollution, and protect communities and natural resources from climate change.   

Since the Bond Act passed, an inter-agency working group comprised of multiple state agencies has been implementing a transparent and collaborative process to identify needs for environmental funding across the state to help develop program logistics. In the last year, the state announced a $200 million funding investment toward the state's existing Water Infrastructure Improvement and Intermunicipal Grant programs, $100 million available for zero-emission school buses, $100 million available for Clean Green Schools, $13.1 million to support construction of the Adirondack Rail Trail and State-administered forestry projects to plant 25 million trees by 2033. Additional funding opportunities are available now. Find open grant opportunities, more Bond Act-related information, and sign up for progress updates at environmentalbondact.ny.gov.

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