Economic incentives are mechanisms that provide financial rewards for reducing environmental impacts or penalties for increasing them. Some economic incentives provided by the Department of Resources Recycling and Recovery (CalRecycle) includes grants, payment loan programs to address household hazardous waste, used oil, and tires. In addition, CalRecycle’s Recycling Market Development Zone Loan Program combines recycling with economic development to fuel new businesses, expand existing ones, create jobs, and divert waste from landfills.
- Financial Economic Incentives
- Funding: Grants, Loans, and Bonds
- Tax Credits
- Tradable Permits and Tariff Contracts
- Local Government Recycling Program and Infrastructure Funding and Financing Mechanisms
Financial Economic Incentives
The following categories are financial economic incentives and disincentives that are either currently applied or could be applied to increase diversion of organics and other recyclable materials. These categories focus on incentives and programs that are not offered by the CalRecycle or the Department of Conservation.
Funding: Grants, Loans, and Bonds
California Business Incentives Gateway database of state and local business development financial programs and service incentives.
Grants are a sum of non-refunded money given by a government agency for specific purpose.
- Low Carbon Transportation Investments and Air Quality Improvement Program
- California Department of Housing and Community Development Block Grant Program
- California Energy Commission Alternative and Renewable Fuel and Vehicle Technology Program
- California Environmental Protection Agency Loans and Grants
- CalRecycle Grant Programs
- California Statewide Communities Development Authority
- Search for Federal Grants
Loans are money borrowed from a government agency.
- California Small Business Loan Guarantee Program (SBLGP)
- California Capital Access Program (CalCAP)
- Collateral Support Program (CSP) (part of CALCAP)
Bonds are certificates issued by a government or public company promising to repay money at a fixed rate and specified time.
- California State Treasurer's Office of Alternative Energy and Advanced Transportation Financing Authority (CAEATFA)
- California Pollution Control Financing Authority (CPCFA)
- California Industrial Development Financing Advisory Commission (CIDFAC)
- California Infrastructure and Economic Development Bank (I-Bank)
Tax Credits reduce business tax liability.
- California Department of Tax and Fee Administration Manufacturing Sales and Use Tax Exemptions
- California Competes Tax Credit
- California Food Bank Tax Credit for Produce Donations
- California Franchise Tax Board New Jobs Credit
- California Franchise Tax Board Manufacturers' Investment Credit References (MIC)
- Research and Development (R&D) Credit
- United States Treasury Community Development Financial Institutions Fund (CDFI) New Markets Tax Credit (NMTC)
A rebate is an amount paid by way of reduction, return, or refund on what has already been paid or contributed.
- California Public Utilities Commission Self Generation Incentive Program
- Employment Training Panel
- PG&E Continuous Energy Improvement
Tradable Permits and Tariff Contracts
Tradable Permits are market-oriented environmental policy that sets a ceiling on the quantity of pollution allowed, and give marketable or tradable permits to emit pollutants up to a cap.
Tariff Contracts are guaranteed contracts that provide predictable revenue streams over a specified term, with specified operating conditions.