“The growing economic, social, political, environmental, and cultural impacts associated with a changing climate are causing immediate and long-term damages to our society, public health, safety, and our overall quality of life. In light of these realities, on November 4th, 2019, Ann Arbor City Council unanimously adopted a Climate Emergency Declaration, stating that climate change is one of the most important issues of our time and that responding to the climate crisis necessitates a mobilization on par with those activated during times of disaster. In passing the resolution, the Council also committed to charting a path for how the entire Ann Arbor community could achieve carbon neutrality by the year 2030...” (A2ZERO Carbon Neutrality Plan) 

The Sustainable Refrigeration Grant program aligns with Strategy 5 (Change the Way We Use, Reuse, & Dispose of Materials), Action 6 (Enhance Refrigerant Recycling & Reuse Program) of the A²ZERO Plan. Making refrigeration systems more efficient and switching to less carbon-intensive refrigerants not only reduces greenhouse gas emissions but also improves air quality for Ann Arbor residents, saves money for businesses over time, and lessens the chances that businesses will lose products. 

According to the California Air Resources Board, one pound of R-22, the most common commercial refrigerant today, has a similar global warming potential (GWP) to one ton of carbon dioxide. Another common replacement for R-22, R-404A, has an even higher GWP. GWP defines how much heat a greenhouse gas traps over a certain amount of time (typically 100 years) compared to carbon dioxide. On average, food retail businesses leak an estimated 25% of their refrigerants per year (United States Environmental Protection Agency, 2013). Given the high GWP from refrigerants, repairing refrigerant leaks and upgrading small food retail businesses from high-GWP refrigerants to lower GWP alternatives will result in immediate and significant greenhouse gas reductions. These reductions will be sustained through the life of the business.  

Many of the larger chain grocers in Ann Arbor, like Aldi, Meijer, Target, and Whole Foods, are EPA GreenChill Food Retail Partners, meaning they receive support with refrigerant maintenance, leak detection, and system upgrades that comply with emerging policies.  In contrast, small businesses generally do not have the capital or technical knowledge to implement lower GWP refrigeration systems and/or follow the best practices for refrigeration system maintenance and leak prevention as outlined by the GreenChill program. This project therefore focuses on retail food businesses with fewer than 100 employees. To drive this initiative, the City of Ann Arbor has created a grant program for local small food retail businesses to either repair leaks in their refrigerant systems or upgrade from high-GWP refrigeration systems to lower GWP alternatives, significantly reducing local greenhouse gas emissions and eliminating a major environmental contaminant. 

The total amount of grant funding available is $100,000. 

To be eligible for this program, businesses must have demonstrated the need for and agree to use grant funds to repair leaks in refrigerant systems or to upgrade, replace, or retrofit a refrigeration system or unit that does not currently use refrigerants from the EPA’s Significant New Alternatives Policy (SNAP) to a refrigeration system that is compatible with refrigerants included in the SNAP. Retrofitting can only be requested if the outcome would result in the system being compatible and efficient with a SNAP compliant refrigerant. For a list of SNAP compliant refrigerants, click here.  

Businesses must be independently owned and operated food retailers with 100 or fewer employees and must be located in Ann Arbor. Only small food retailers are eligible to apply for this grant. Small food retailers include any store that sells food items off the shelf. This can include stores with restaurants in them, but not operations that are exclusively restaurants. Examples of businesses that may be eligible for this funding include convenience stores, liquor stores, and small grocers.  

Priority will be given to businesses located in historically underserved communities, as identified by EJScreen tool data.   

Businesses must be able to provide a 15% cash match to the grant to be considered. The maximum amount that a business can request in grant funding for this grant is $33,300, excluding the 15% cash match. All businesses must have been in operation for at least 2 years prior to submitting this application packet. All equipment being replaced or repaired must have been produced in or before the year 2024.   

To be eligible for a system upgrade, the business must provide proof of a Mechanical Permit (or proof that one is being obtained) that will allow the business to execute the upgrade.  

To be eligible, a business must provide its Unique Entity Identifier. 

The grant will be distributed on a first come, first serve basis for those entities that meet eligibility requirements. Businesses that serve historically underserved communities, have a higher financial need, and/or own older systems that currently use high GWP refrigerants are a priority and are strongly encouraged to apply.  

All applicants must provide a plan for how the business will measure the impact and outcomes of the grant. Examples are included in the corresponding question of application section 2. Acknowledgment of this is required in the grant application. 

Applicants are required to submit the make, model, and year of the equipment that is being repaired or replaced, as well as the make, model, and year of the equipment they are submitting a grant request for in the case of replacement.  

For replacements of refrigeration units (including chillers, merchandising refrigerators, and walk-in coolers), grantees will receive reimbursement for the documented costs of the new unit. For retrofits of current refrigeration systems (including grocery store refrigeration systems), grantees will receive reimbursement for materials and labor associated with the retrofit. No funds will be distributed without documentation that all refrigerant from the previous system was reclaimed by an EPA-certified reclaimer and properly disposed of. 

A grantee must submit its Claim for Reimbursement Spreadsheet along with copies of invoices in a manner prescribed by and on forms provided by the City of Ann Arbor no later than December 18, 2026. A grantee will be emailed the Claim for Reimbursement Spreadsheet if their grant application is accepted. All funds must be expended by this date. All unexpended funds will be used by the city to award other grants. 

If submitting a request for a complete refrigerant system or replacement, the new system must be compliant with the EPA Significant New Alternatives Policy Program (SNAP). 

All retrofitting and service costs must be used to increase refrigerant system efficiency. This may include installation, delivery, and leak repair costs.  

Applications must be submitted for each site that is requesting funding. All applications must be complete, including the checklist, cover page, and sections 1, 2, and 3. Once complete, materials should be submitted in the form below. 

A completed application packet consists of the following: 

Checklist which requires signatures and all boxes checked before submitting. 

Cover page with the required electronic signature of the business owner and employee handling the application if the business owner is not the person directly applying.  

Section 1 - Need Statement/Problem Description. All questions are required. 

Section 2 - Planning. Inclusion of graphics to convey timeline or other information here is allowed but not required. Every question must be answered.  

Section 3 - Budgeting. Please only use this template to submit a proposed budget. Addition of rows is allowed.