Questions and Answers: Beverage Container Redemption Innovation Grant Program, Cycle 8 – New Recycling Center (FYs 2023-24 and 2024-25)

Questions about the Beverage Container Redemption Innovation Grant Program, Cycle 8, New Recycling Center, FY 2023-24 and 2024-25 grant application are accepted in writing only, no later than May 27, 2026. Similar or related questions may be grouped together or reworded for clarity and responded to as one question. In order to receive a response, a question must pertain to clarification of the application and the requirements in the application process. Any questions submitted pertaining to other elements of the grant will not be posted on the official Question and Answer web page. Questions regarding Recycling Center operation requirements and certifications should be directed to the Division of Recycling at (916) 324-8598.

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 | Eligibility | Certification | Eligible Projects | Funding | Application 

General

  1. What does NTP mean in the Beverage Container Redemption Innovation Grant Program, Cycle 8 (RIG8) Program?

NTP stands for Notice to Proceed. This terminology is specific to the Redemption Innovation (RIG) Grant Program and is separate from the certification process/approval from the Division of Recycling. The RIG grant term begins on the date of the NTP email. This email is the formal notification from CalRecycle authorizing the grantee to begin the grant project and incur costs for the RIG project. Expenditures made or costs incurred prior to the NTP date are not eligible for reimbursement.

  1. Under the grant award conditions, the grantee must pay all outstanding debts due to CalRecycle. Please provide examples of debts due to CalRecycle from certified recycling centers. What other debts are typically due from recycling centers in the current program?

An outstanding debt includes any payment(s) owed to CalRecycle. This may include, but is not limited to, fines, violations, and other penalties. If an entity has received an invoice from CalRecycle for funds owed to CalRecycle, and payment has not been received, that entity must remit payment to CalRecycle within 60 days of an award email, or the award will void.

  1. The grant period is through April 1, 2028. Does this mean that all grant funds need to be used/invoiced by that date?

Yes, all costs must be incurred, and equipment must be delivered before April 1, 2028. The Redemption Innovation Grant (RIG) Program is a reimbursement program. A grantee will only be reimbursed for authorized expenses incurred during the grant term. Equipment must be purchased and delivered, and installed, if applicable, before the grant term end date.

  1. If my organization received a previous RIG award, can we apply for RIG8?

Yes, if you are a current recycling center that has previously received grant funding from the Beverage Container Recycling Fund, you may apply. Additionally, applicants with an open RIG grant may require an additional review to ensure the open project is progressing in a manner satisfactory to CalRecycle before another RIG grant may be awarded.

  1. Do I need to hire a grant writer to apply for the Beverage Container Redemption Innovation Grant Program?

No, it is not a requirement that you hire a grant writer to apply for the Beverage Container Redemption Innovation Grant Program. If you choose to hire a consultant, understand what is being submitted on your behalf. Before you sign and submit the application documents, read all the documents and confirm that the information provided accurately represents your project completely. Also, consultant fees are not reimbursable with grant funding.

  1. Does CalRecycle have a preferred equipment list?

No. CalRecycle does not have, nor will CalRecycle provide, a preferred equipment list.

  1. If a Qualifying Tribal Entity is already an existing Grantee under a different RIG cycle, can they also apply for this RIG8 grant?

Yes, applicants who previously received grant funding from the Beverage Container Recycling Fund may apply. However, priority will be given to applicants not previously awarded in past RIG cycles. Additionally, applicants with an open RIG grant may require additional review to ensure the open project is progressing in a manner satisfactory to CalRecycle before another RIG grant may be awarded. Please refer to the Application Guidelines and Instructions for additional information.

Eligibility

  1. Can a legal entity that holds two Recycling Center Certifications submit two separate applications for each Recycling Center?

No, only one application per business entity will be considered. Any and all subsidiaries, divisions, or affiliated businesses are considered part of the primary business entity for the purpose of applying for and receiving a grant award under the program. A business is considered an “affiliated business” if it has at least one owner with a forty (40) percent or greater interest in another applicant’s business. If an applicant submits more than one application, it will be the applicant’s responsibility to decide which application should go forward. If the additional application(s) are not withdrawn, all applications from that applicant will be disqualified.

  1. Do Recycling Centers in No Zones qualify for New Recycling Center project scopes under RIG?

Yes, all projects must be located within an unserved convenience zone or no convenience zone.

  1. Are public agencies, such as local governments and counties, eligible to apply?

The eligible applicants for the Beverage Container Redemption Innovation Grant Program Cycle 8 (RIG8) are existing or new certified Recycling Centers. The existing or new certified Recycling Center must be either a nonprofit organization, a private entity, a for-profit business, local governments, Joint Powers Authority (JPA), public colleges or universities, or qualifying tribal entity. For additional information, refer to the Eligible Applicants section of the Application Guidelines and Instructions document.

  1. If we apply for RIG8 (New Recycling Center), would purchasing a new baler, forklift, and making improvements to the property be eligible?

Yes. The purchase of a baler and a forklift, and the costs associated with retrofitting the site to house the equipment, would be eligible under RIG8. However, general property improvements are ineligible.

  1. Would a recycling center currently serving the zone be an eligible applicant for this program? What if the recycling center is the sole recycling center within the zone?

No. All projects must be located within an unserved zone, or no zone, at the time of award. For additional information, refer to the Eligible Applicants section within the Application Guidelines and Instructions document.

  1. Can we only include education activities in our application for the RIG8 grant program?

No. A project focused solely on education activities is not an eligible project type under RIG8.

  1. We are a Community Service Program, and we do everything except pay the person who turns in the recycling. Instead, we redeem and use the money for our nonprofit. Does this make us ineligible?

Yes. Only Certified Recycling Centers that pay consumers at the time of redemption are eligible for RIG8. For additional information, refer to the Eligible Applicants section within the Application Guidelines and Instructions document.

  1. I am a newly certified recycling center owner. Would I qualify for this grant? If yes, how can I start the process?

Yes, a new recycling center is eligible to apply for this program. For additional information, refer to the Eligible Applicants section in the Application Guidelines and Instructions document.

  1. If a pilot program location still technically has a convenience zone assigned to it, would an applicant still be allowed to apply for RIG8 funding at that location?

No. The convenience zones associated with any proposed RIG8 project site must be unserved at the time of award. Please refer to the Application Guidelines and Instructions for additional information.

  1. Are current pilot program locations eligible to apply for the RIG8 grant at their current location if they close the pilot program site before the awards?

Pilot Project Recyclers are not eligible to apply for the RIG8 cycle.

Certification

  1. Do applicants need to be certified and operational before the Grant Agreement is executed?

No. After an Applicant is awarded a grant, they will receive a Grant Agreement. The Grant Agreement needs to be signed by the Signature Authority and returned to CalRecycle no later than 60 days after receiving your notice of award. Awardees must be certified and have acquired the necessary permits under their local authority before receiving the Notice to Proceed (NTP). In addition, grantees must be operational within a designated time period, as stipulated in their Grant Agreement.

Eligible Projects

  1. Does opening a new recycling center that only does weigh-and-pay suffice as an eligible project type?

Yes. A new weigh-and-pay recycling center is eligible for funding.

  1. Can an individual application include multiple project types under the same application?

No, only the specific project type (New Recycling Center) is eligible under the RIG8 cycle of the Beverage Container Redemption Innovation Grant Program.

  1. Are there resources available to determine if a project site is within an unserved convenience zone or no zone?

Yes, there are resources available to determine the project site’s viability. Use the Convenience Zone Status (ca.gov) webpage to identify the Convenience Zone Number and its associated status for the project. Also refer to the Proposed Project Description and Goals section of the Narrative Proposal.

  1. Can equipment funded by one RIG cycle also provide incidental benefit to another funded grant project? Can any single piece of equipment be partially or jointly funded across two grant cycles, or must each piece of equipment be exclusively funded by one grant? For example, if sorting equipment is installed at the anchor center and also serves as the counting/sorting station for containers collected via a mobile route, does that create a funding conflict between RIG8 and RIG7?

Equipment located at a main Recycling Center site (i.e., anchor Recycling Center, weigh and pay), either related to sortation or processing of material, would potentially have an effect on other grant-funded project operations. The equipment associated with a single project should be funded solely under its assigned RIG grant. Partial funding across cycles is not permitted.

  1. Can an operational consultant be paid through grant funds?

Consultant costs, whether for administrative or equipment operations, are not eligible for reimbursement under RIG8.

  1. Is a single manufacturer quote for specialized recycling equipment acceptable, or is CalRecycle’s requirement intended to mandate competitive bidding? Is there a sole-source justification process for specialized equipment?

A single manufacturer’s quote would be considered allowable in part with the application. There is no bid requirement for equipment quotes, and similarly, there is no sole source justification process instead of the bid requirement. Please refer to the Procedures and Requirements document for additional information.

  1. If I rent a place to open the new recycling center, will lease payments be an eligible cost? Would it be part of infrastructure costs or non-Infrastructure costs?

Yes. Lease/rent costs (not to exceed three months) would be considered an eligible, non-infrastructure, administrative cost. Please refer to the Eligible Cost section of the Procedures and Requirements document for additional information.

  1. If I want to open a new recycling center and do both “weigh and pay” and Reverse Vending Machines (RVM), can I apply for RIG8 and RIG9 under the same site?

Yes, one applicant can apply for both RIG8 and RIG9 opportunities. However, the sites included in each application would need to be separate and distinct based on project operation. Any overlap of project costs between applications would not be allowable.

  1. Does internet hardware purchase and installation, such as a 5G router or satellite terminal, qualify as Equipment under RIG8, provided it is necessary for the innovative method of redemption equipment to work?

Yes. Internet hardware and installation would be considered an eligible equipment cost, so long as it has a direct link to the project equipment. Please refer to the Eligible Costs sections of the Procedures and Requirements document for additional information.

  1. Does an internet connectivity monthly fee qualify as an eligible cost under RIG8, provided it is necessary to operate the innovative method of redemption equipment? If yes, would it be categorized as Equipment or Administrative (Operating Expense)?

No. Internet services would be considered an ineligible operating cost because they fall under overhead/utilities related to daily operations.

  1. Would modular or prefabricated structures used directly for California Redemption Value (CRV) redemption, customer intake (traffic flow improvements), sorting/staging areas, Bag Drop operations, or material handling qualify as eligible infrastructure costs under RIG8?

Equipment related to start-up costs associated with establishing a new weigh and pay certified Recycling Center is eligible under RIG8. This would include eligible infrastructure, including, but not limited to, material handling equipment, sorting/staging areas, modular or prefabricated structures to house the equipment, and/or customer intake equipment. Bag drop equipment is not allowed for RIG8. Please refer to the Eligible Costs section of the Procedures and Requirements document for additional information.

  1. Would electrical upgrades and infrastructure improvements needed to support upgraded recycling equipment qualify as eligible project costs?

Yes. Costs associated with electrical upgrades and infrastructure improvements would be considered eligible under the RIG8 cycle, so long as these costs have a direct link to the weigh and pay Recycling Center. Please refer to the Eligible Costs section of the Procedures and Requirements document for additional information.

  1. Would customer check-in systems, digital payment systems, or software directly supporting redemption operations qualify as eligible project costs?

Yes. Check-in systems, digital payment systems, and/or software costs are eligible under the RIG8 cycle, so long as they have a direct link to the weigh and pay equipment. Please refer to the Eligible Costs section of the Procedures and Requirements document for additional information.

  1. Would security cameras and monitoring systems directly supporting recycling center operations qualify as eligible project costs?

Yes. Security and/or monitoring equipment with a direct link to the weigh and pay equipment would be considered an eligible cost under the RIG8 cycle. Security subscriptions or memberships are not eligible costs. Please refer to the Eligible Costs section of the Procedures and Requirements document for additional information.

Funding

  1. What is the typical timeline from grant award to issuance of a Limited NTP so that certain expenditures (e.g., conditional use permit costs) can begin?

The issuance of the Notice to Proceed (NTP) varies based on a number of factors, therefore there is not a typical timeframe.

Application

  1. Can the entire award amount be used for the same project type?

Yes, the entire award amount must be used for the specific project type eligible for the RIG8 cycle. Overlap between different project types, typically considered in the Beverage Container Redemption Innovation Grant Program, is not eligible for this cycle. All project costs must be included in the Budget document submitted with the application.

  1. Can an entity be awarded for more than one of the four (4) RIG6–9 Grant opportunities?

Yes, one applicant can apply once for each of the four (4) RIG cycles and could be awarded.

  1. How will rank preference be applied for tribal and/or rural applications?

Priority will be given to both applications, including qualifying tribal entities and sites located in rural convenience zones. Rank preference will not be considered between the two priorities; however, applications that may include multiple priority factors would be ranked higher (i.e., applicants not previously awarded in past RIG cycles, sites within unserved convenience zones, etc.).

  1. If we are awarded a grant in RIG8, would we lose the “not previously awarded” priority status in RIG6, RIG7, or RIG9 if those cycles are evaluated at the same time or later in the same award period? Are all four open cycles (RIG6–RIG9) evaluated simultaneously or sequentially?

The priority consideration for applicants not awarded in past RIG cycles applies to those who were not awarded in RIG cycles 1–5. The priority consideration will apply at the time of application submittal. The RIG6–9 cycles will be evaluated separately, but over the same time period.

  1. What specific steps constitute “certification” for the Recycling Center certification requirement? Is it the initial CalRecycle Division of Recycling certification only, or does it also include local permitting? If the 6-month certification window cannot be met due to factors outside the applicant’s control (e.g., local permitting delays), is there a formal extension process?

Awardees or Grantees must submit and initiate the process to become a certified Recycling Center with CalRecycle’s Division of Recycling. This will include the precertification process before submitting the certification application. Local permitting is a separate process; however, it may affect the certified Recycling Center’s ability to become operational. If an applicant is unable to fulfill the requirements in submitting the application and obtaining certification, CalRecycle may terminate the Grant. For additional questions regarding Recycling Center operation requirements and certifications, please contact CalRecycle’s Division of Recycling at (916) 324-8598.

  1. What specific documentation is required at the time of application to demonstrate a business is “in the process of obtaining a business license issued by a California city, county, or city and county”? Is a formation filing, an EIN, or a pending business license application sufficient? Must the business be fully registered and in good standing at the time of application, or only by the time of award?

Yes. A pending business license application, establishing an EIN, and a formal filing with the California Secretary of State would suffice at the time of application. However, a business must be fully registered and in good standing at the time of the secondary due date to be eligible for award.

  1. Lease/Letter of Intent Requirements: What constitutes an acceptable “Conditional Lease Agreement”? Is a Letter of Intent (LOI) from a commercial property management company sufficient, or must it be a signed conditional lease agreement? What minimum terms must be included? Does the LOI need to specify a lease duration, rent amount, or permitted use language related to recycling operations? Can the LOI be conditioned on grant award?

A conditional lease agreement can be in the form of a draft lease agreement or a letter of intent to establish a formal lease agreement at the project site location. The conditional lease agreement or letter of intent must include, but is not limited to, the proposed address, lease duration, rent amount, permitted use language to project operations, etc. A letter of intent may also be conditional on the grant award, as with a conditional lease agreement.

  1. Does app/software development count as infrastructure or non-infrastructure? If the app serves both consumer-facing recycling education functions and equipment control functions, how should it be categorized and split across budget categories?

The software costs may be considered an eligible equipment cost under infrastructure, provided that the software has a direct link to the equipment.

  1. In the Narrative Proposal, do I need to identify which processing facility I will be delivering the recycling products to?

Yes. Please provide clear details of the project and how the material will flow within the proposed Certified Recycling Center operation.