Questions and Answers: Reusable Beverage Containers Infrastructure Grant Program FY 2022-23

The question-and-answer period is now closed for this grant cycle. All questions and answers are posted on this site.

Questions about the Reusable Beverage Containers Infrastructure Grant Program grant application are accepted in writing only, no later than December 4, 2024. Similar or related questions may be grouped together or reworded for clarity and responded to as one question.

To receive a response, a question must pertain to clarification of the application, the requirements in the application process, and any Grant administration focused inquiries. Any questions submitted pertaining to other elements of the grant will not be posted on the official Question and Answer web page.

All questions and answers will be posted during the application period and are subject to updates. It is the applicant’s responsibility to check this website for the latest information regarding this grant cycle.

General

What is the intent of the Reusable Beverage Containers Infrastructure Grant Program?

The fundamental goal of the Reusable Beverage Containers Infrastructure Grant Program is to provide infrastructure and start-up costs related to a deposit-return system for glass reusable containers in the Beverage Container Recycling Program. Please refer to the Eligibility, Scoring Criteria, and Evaluation Process for the Reusable Beverage Containers Infrastructure Grant Program.

Eligibility

I do not currently have the adequate facilities to provide the relevant bottle washing processor services and I would not sign a lease for such facilities unless I were to be awarded grant funds. However, I do have a specific facility in mind, as well as a floor plan ready for submission to the city. I am aware of all required permitting to establish/operate this facility. Given this context, would our application still be eligible? Or is the lack of an executed lease agreement for the facility a disqualifying factor?

Yes, the application would still be eligible without the executed lease agreement for the facility. However, a draft lease agreement is required at the time of application. Additionally, the lease agreement must meet the requirements for developing a permanent facility on privately owned property (e.g., a long-term lease evidencing a commitment to utilize the facility for the purpose set forth in the grant; a commitment to utilize the facility as described in the application for the life of the facility). Please refer to the Facilities on Non-Owned Property section of the Procedures and Requirements document.

Is the Reusable Beverage Containers Infrastructure Grant Program open to only existing companies?

No, new companies may apply for the Reusable Beverage Containers Infrastructure Grant Program. The new entity would need to be established prior to the submission of the application. Please refer to the Eligible Applicants section of the Application Guidelines and Instructions document.

Are individuals eligible to apply for the Reusable Beverage Containers Infrastructure Grant Program, with the goal of establishing a for-profit reusable glass bottle deposit-return system from scratch, upon award of the grant?

Individuals are not considered eligible applicants under the Reusable Beverage Containers Infrastructure Grant Program. Although private, for-profit entities are considered eligible applicants under the Reusable Beverage Containers Infrastructure Grant Program, the entity would need to be established prior to the submission of the application. Private entities must be authorized to conduct business in the State of California, by either being registered with the California Secretary of State as a business located in California, being registered as a foreign (out-of-state or out-of-country) business, or being in the process of obtaining a business license issued by a California city, county, or city and county. Please refer to the Eligible Applicants section of the Application Guidelines and Instructions document.

Are existing companies applying for the Reusable Beverage Containers Infrastructure Grant Program required to be already in the recycling industry or can they be in any industry?

There is no requirement for an entity to be established within the beverage container recycling industry prior to the submission of an application for the Reusable Beverage Containers Infrastructure Grant Program. However, a bottle washer processor must acquire certification from CalRecycle as a result of the grant. Please refer to the Eligible Applicants and Applicant’s Documents section of the Application Guidelines and Instructions document.

Can a California-based organization team up with an out-of-state entity for this grant?

Yes, an applicant may partner with an out-of-state entity for their Reusable Beverage Containers Infrastructure Grant Program application. However, the primary applicant must be based out of California and the Bottle Washer Processer must also be an eligible entity within California to be certified as such. Please refer to the Eligible Applicant section of the Application Guidelines and Instructions document.

“Bottle washing processing site” seems to assume that bottle washing/sanitizing happens in a distinct, siloed location apart from the point of use/point of sale rather than co-located at the point of sale. How would you like us to indicate certified site information for the latter situation?

In this situation the applicant must enter the same address within the site tab. Please refer to the Site(s) Tab section of the Application Guidelines and Instructions document.

Eligible Projects

The project description of “glass California CRV” makes it seem like the beverage containers will need to be returned to a recycling center. Is this true?

For the purpose of the Reusable Beverage Container Infrastructure Grant Program, the glass CRV can be returned to any certified or registered program (i.e. curbside program, collection/drop-off program, community service program, or recycling center). However, the beverage container must be whole and damage free (i.e. no chips and/or cracks) to make the container reusable. The processor should have an agreement with the certified or registered program it collects material from to ensure the glass bottles are able to be washed.

Is this grant intended for glass beverage container reuse on-site?

No, the glass CRV material must be processed by a bottle washer processor for subsequent washing for refill and sale by a beverage manufacturer.

Are only glass CRV containers eligible?

Yes, only CRV glass beverage containers are eligible under the Reusable Beverage Containers Infrastructure Grant Program. Please refer to the Eligibility, Scoring Criteria, and Evaluation Process for the Reusable Beverage Containers Infrastructure Grant Program.

Are stainless steel containers ineligible? If so, why?

Yes, stainless steel containers are ineligible, because they are not defined as reusable per the statue. §14525.1 defines a “reusable beverage container” as a glass beverage container with a refund value established pursuant to Section 14560 and that is processed by a processor for subsequent washing for refill and sale by a beverage manufacturer.

What is the difference between reusable beverage containers and refillable beverage containers? Are refillable beverage containers eligible?

“Reusable beverage container” means a glass beverage container with a refund value established pursuant to Section 14560 and that is processed by a processor for subsequent washing for refill and sale by a beverage manufacturer. Pursuant to Section 14525, “refillable beverage container” means any aluminum beverage container, bimetal beverage container, glass beverage container, plastic beverage container, or other beverage container, holding 150 fluid ounces or less of beverage, which has a minimum deposit of three cents ($0.03), and which ordinarily would be returned to the manufacturer to be refilled and resold. Refillable beverage containers are ineligible for this program.

Will the cost of transportation of the glass beverage containers to the processor be considered eligible?

No, transportation costs and/or costs associated with vehicles/trucks are not eligible under the Program. Please refer to the Eligible/Ineligible costs section of the Procedures and Requirements document.

Can we apply for this grant to purchase bottle washing equipment and become a certified Bottle Washer Processor for other grantees to engage within their deposit-return systems?

In terms of applicants within the Reusable Beverage Containers Infrastructure Grant Program, each applicant would need to identify the intended Bottle Washer Processor associated with their project. Also, entities may join together in a Cooperative Application in which two or more eligible entities join together for the purpose of grant implementation. Outside of an individual application, applicants may also partner with current or former CalRecycle Grantees in part of the established deposit-return system from the Reusable Beverage Containers Infrastructure Grant. Please refer to the Eligible Applicants section of the Application Guidelines and Instructions document.

If we were to apply for funding to become a certified Bottle Washer Processor, could we do so without establishing a full deposit return system (e.g. without identifying the other businesses within the material flow)?

No, the purpose of the Reusable Beverage Containers Infrastructure Grant Program is to provide infrastructure costs and start-up costs related to setting up a deposit-return system for glass California CRV reusable beverage containers. Please refer to the Background and Analysis section of the Eligibility, Scoring Criteria, and Evaluation Process for the Reusable Beverage Containers Infrastructure Grant Program.

Certification

Will a bottle washer processor need to become certified, and do I need to be certified to apply for the Reusable Beverage Containers Infrastructure Grant Program?

Yes, a bottle washer processor must acquire certification from CalRecycle, which will authorize a processor to satisfy the cancellation requirement by washing a reusable beverage container or transferring a reusable beverage container for subsequent washing to a processor. However, an applicant does not need to be certified in order to apply. Applicants are required to identify the entity that will be certified as a Bottle Washer Processor and a timeline for the certification of the Bottle Washer Processor to be secured. Please refer to the Application Guidelines and Instructions document for more information.

How does an entity become a certified Bottle Washer Processor?

The entity identified as the Bottle Washer Processor will need to submit a Glass Cleaning Process Application (CalRecycle 742) through the Division of Recycling. Please refer to the Glass Cleaning Application within CalRecycle’s Processor webpage.

Funding

Is this a reimbursement grant or are the funds advanced (if awarded) at the beginning of the grant term?

Payments are made to the grantee on a reimbursement basis and only for eligible activities, products, and costs specifically included in the approved Work Plan and approved Budget. To be eligible for reimbursement, costs must be incurred and fully paid (payments must be cleared). All grant-funded costs must be incurred after receiving a Notice to Proceed and before the end of the Grant Term. For additional information, refer to the Procedures and Requirements document.

Is funding permitted for engineering uses? “Engineering” as a class of activities is distinct from Research & Development, which comes with technical/science risk, and instead focuses on making adjustments or improvements to design based on new geographies or environments.

Although the development or “engineering” of equipment associated with setting up a deposit-return system for glass California CRV reusable beverage containers would technically be allowable, all costs must be deemed reasonable and/or related to the grant project by the Grant Manager. Please refer to the Eligible and Ineligible Cost sections of the Procedures and Requirements document.

Our budget will include a line item for services from a partner as a subcontractor. Does the budget figure associated for those contracted services contribute toward the 10% limit (of the total request) for “personnel staffing” as listed on page 15 of the RFP? Or would that be considered separate from the 10% limit?

Services provided by a subcontractor may be included within different non-equipment-related Budget categories (i.e., Software, Construction and Installation, Materials and Supplies, Personnel, Education, Outreach, and Training), dependent on the work or services being performed. For instance, the applicant would include the subcontractor services under the Personnel category, if those services are personnel-related functions. Please refer to the Budget item within the CalRecycle Documents section of the Application Guidelines and Instructions document.

Is a piece of equipment, such as an inspection unit, located on a third-party premise but overseen/managed by the grantee considered “under the control” of the grantee?

No. To be “under the control” of the grantee, equipment must be overseen/managed by the grantee and also located on the grantee’s premises.

Are bottle molds for manufacturing an allowable expense? If so, would they be considered “Equipment” or “Materials and Supplies”?

No, bottle molds for manufacturing are not an allowable expense. Please refer to the Eligible Costs section in the Procedures and Requirements document.

Application

When are applications due for the Reusable Beverage Containers Infrastructure Grant Program?

Applications are due no later than 11:59 p.m. on December 19, 2024.