Funding: Total: $2,500,000. Interest Rate: 4.0%.

Dates: Applications accepted on a continual basis.


The Department of Resources Recycling and Recovery (CalRecycle) offers the Greenhouse Gas (GHG) Reduction Loan Program pursuant to Public Resources Code sections 42995–42998. The GHG Reduction Loan Program provides funds to support new or expanded organics infrastructure, such as composting and anaerobic digestion facilities, as well as for facilities that manufacture fiber, plastic or glass waste materials into beneficial products. The purpose of this investment is to further the purposes of the California Global Warming Solutions Act (Assembly Bill 32), reduce methane emissions from landfills and further GHG reductions in upstream resource management and manufacturing processes; benefit disadvantaged communities by upgrading existing facilities and, where warranted, establishing new facilities that reduce GHG emissions; result in air and water quality improvements; and create jobs.

Project Topic Areas:

For a loan made pursuant to this subdivision, the department shall expend the moneys in the loan fund to provide loans to public and private entities for in-state infrastructure projects or other projects that reduce the emissions of greenhouse gases by any of the following:

  • Organics composting – Capital investments in new facilities and increased throughput at existing facilities for activities, such as converting windrow composting to aerated-static-pile composting to use food waste as feedstock.
  • Organics in-vessel digestion – Designing and constructing organics in-vessel digestion facilities to produce products, such as biofuels, bioenergy, and soil amendments.
  • Recyclable material manufacturing – Designing and constructing facilities for processing recyclable materials, and projects to improve the quality of recycled materials.
  • Activities that expand and improve waste diversion and recycling, including, but not limited to, the recovery of food for human consumption and food waste prevention.

In awarding a grant for organics composting or anaerobic digestion, the department shall consider all of the following:

  1. The amount of reductions of emissions of greenhouse gases that may result from the project.
  2. The amount of organic material that may be diverted from landfills as a result of the project.
  3. If and how the project may benefit disadvantaged communities.
  4. For a grant awarded for an anaerobic digestion project, if and how the project maximizes resource recovery, including the production of clean energy or low-carbon or carbon negative transportation fuels.
  5. Project readiness and permitting that the project may require.
  6. Air and water quality benefits that the project may provide.
  7. To the degree that funds are available, the department may provide larger grant awards for large-scale regional integrated projects that provide cost-effective organic waste diversion and maximize environmental benefits.

Funding/Cost Sharing:

The total funds available for FY 2019-20 is $2,500,000. The interest rate for loans is 4.0%. The department may establish and collect fees to fund the costs of administering the revolving loan program, including, but not limited to, an application fee and loan closing points. Moneys collected by the department from loan repayments and fees shall be deposited in the loan fund. Loan repayments and fees include, but are not limited to, any of the following: Principal and interest repayments; Fees and loan closing points; Recovery of collection costs; Income earned on an asset recovered pursuant to a loan default; or Moneys collected through foreclosure and other collection actions.

Project Requirements:

The terms and conditions of an approved loan shall be specified in a loan agreement and related documents between the borrower and the department. The department shall approve only those loan applications that demonstrate the applicant’s ability to repay the loan. The department may establish additional requirements that it determines to be necessary or useful to achieve the revolving loan program’s objectives, including, but not limited to, ensuring repayment ability.

Eligible Applicants:

Public and private entities.