CalRecycle Awards $2.7 Million to Fight Global Warming: Businesses Receive Grants & Loans for Greenhouse Gas Reduction Efforts

CONTACT: Lance Kulg

SACRAMENTO -The Department of Resources Recycling and Recovery (CalRecycle) has awarded $2.7 million to three California companies to boost the state’s greenhouse gas reduction efforts.

The grant and loans, using proceeds from the state’s cap-and-trade auctions,  are awarded for projects that will help achieve the greenhouse gas reduction targets outlined in California’s Global Warming Solutions Act of 2006 (AB 32). The projects will also help California reach its statewide goal of 75 percent recycling, composting, and source reduction.

Greenhouse Gas Reduction Revolving Loan Program

In all, $4.6 million was earmarked (FY 2014-15) to expand existing capacity or establish new facilities to process organics and postconsumer recycled fiber (paper, textiles, carpet, and wood), plastic, or glass to manufacture new products. To date, the following projects have been approved:

  • Harvest Power California (Tulare County) specializes in the production of compost. Harvest Power will receive an $890,000 loan to purchase new equipment that will increase diversion of pre-processed and post-processed food and green waste and to install an irrigation system to reduce the overall requirement for water in composting. 
  • Nursery Products (San Bernardino County) specializes in the production of compost. Nursery Products will receive an $850,000loan to install and operate new equipment to help it increase diversion of green waste and reduce the overall requirement for water in composting.

Organics Grant & Recycled Fiber, Plastic, and Glass Grant Programs

In all, $19.5 million was earmarked (FY 2014-15) for infrastructure investments that will result in reduced greenhouse gas emissions. CalRecycle allocated $14.5 million for organics projects that reduce the amount of green/food materials sent to landfills; $5 million was allocated for projects that use postconsumer recycled fiber, plastic, or glass to manufacture new products. The final grant for the FY 2014-15 cycle was approved in July to partially fund the following:

  • Reliance Carpet Cushion (Los Angeles County), which manufactures carpet cushion with 100 percent recycled content, will receive $1 million to increase the recovery, recycling, and remanufacturing of mixed plastics and post-consumer PET carpet fiber, a type of carpet that is difficult to recycle.

The Budget Act of 2014 authorized CalRecycle to issue grants and loans for new or expanded infrastructure projects that result in reduced greenhouse gas emissions. CalRecycle works closely with the Air Resources Board, which is responsible for California’s cap-and-trade program, to develop procedures to evaluate, quantify, and report on the greenhouse gas emission reductions achieved by the projects. The projects are part of the California Climate Investments, which use proceeds from the state’s cap-and-trade program to reduce greenhouse gas emissions and provide a variety of additional benefits.  

Application information for the 2015-16 grant/loan cycle will be posted online as funds become available. Like prior grant cycles, applicants are required to calculate greenhouse gas reductions and the amount of landfill disposal that would be reduced. A thorough work plan, including a readiness to move forward quickly, is also required. Preference points are given to projects that benefit disadvantaged communities as recently designated by the California Environmental Protection Agency for the purpose of investing greenhouse gas reduction funds.