Greenhouse Gas Reduction Loan Program

Facility/Manufacturer Type

• Preprocessor
  • A preprocessor produces an intermediate product which requires further processing by another manufacturer.
  • The preprocessor must result in new diversion from landfills, e., beyond that which was already being diverted.
  • The preprocessor must provide proof of binding agreement with a California finished product producer that receives the preprocessed feedstock to make compost, soil amendments, biofuels, bioenergy, or recycled content finished products.
• Finished Product Producer
  • A finished product producer makes a good or package in a form which requires no further processing or forming before it is offered for sale to an end-user. It does not include intermediate products, such as plastic pellets sold as feedstock to a converter for fabrication into a consumer product.
• Food Waste Prevention
  • The loan program cannot finance equipment and machinery that will be located and operated by a third-party.

Project Location

• A preprocessor who makes intermediate recycled-content intermediate products, must be located in California, and sell the products to Finished Product Producers that are also located in California.
• Finished product producers must be located in California.

Feedstock Waste Material Types

• Organics Projects: Organics (green waste and food waste) waste materials.
• Recycled Fiber, Plastic, and Glass Projects: Recycled fiber (paper, textiles including mattresses, carpet, and wood), plastic, and glass waste materials.

Environmental Requirements

• Greenhouse Gas Emission Reduction:
  Projects must be located in California and result in permanent, annual, and measurable reductions in greenhouse gas (GHG) emissions.
• Feedstock/Waste Material Diversion from Landfills
  Projects must increase the quantity (tons) of:

1. Organics projects: California-generated green or food materials, or alternative daily cover (ADC) newly diverted from landfills and composted or digested; or
2. Recycled fiber, plastic, and glass projects: California-generated fiber, plastic, or glass materials newly diverted from landfills.

For purposes of this program, “newly diverted” means the tons of materials that are currently being landfilled or used as alternative daily cover that will instead be diverted as a result of this project.

Construction, renovation, or expansion of facilities to increase in-state infrastructure for:

1. The digestion or composting of organics into compost, soil amendments, biofuels, or bioenergy; or
2. The manufacturing of value-added finished products using California derived recycled content fiber, plastic, or glass.

• Construction, renovation, or expansion of facilities to increase in-state infrastructure for:

1. The preprocessing of organics when providing preprocessed materials to an in-state digestion or composting facility that is using the waste to make compost, soil amendments, biofuels, or bioenergy; or
2. The preprocessing of fiber, plastic or glass waste when providing preprocessed materials to an in-state manufacturing facility that is using the waste to make finished products.

• Expansion of projects that have previously received Greenhouse Gas Reduction grants or loans from CalRecycle are eligible provided the project meets the loan criteria and the previously funded project is progressing in a manner satisfactory to CalRecycle.
• Food waste prevention projects result in measurable reduction in food waste normally destined for a These projects can prevent food waste through source reduction and/or edible food rescue. Food rescue must result in rescued food being distributed to people in a disadvantaged community with any food waste residuals from the project being sent to a compost, digestion, or fermentation facility when one is available within the food waste prevention project’s service area.
• New and expanded facilities will be required to use the best available control technology (BACT) to limit emissions and ensure compliance with air quality standards.